INTERNSHIP REPORT ON

UNITED BANK LIMITED PAKISTANMAIN BRANCH, BANNU (0306)

Submitted To:The Director (IMS)

Prof. AMAN ULLAH AWAN

Submitted By: MUSTAFA KHAN

BBA-IT (HONS)

Roll No.832

Session 2006-10

INSTITUTE OF MANAGEMENT SCIENCES, UNIVERSITY OF SCIENCE AND TECHNOLOGY BANNU

INSTITUTE OF MANAGEMENT SCIENCES

INTERNSHIP REPORT ON

UNITED BANK LIMITED OF PAKISTANMAIN BRANCH, BANNU

External Examiner:

Signature ...............................

Director:

Signature ………………………

Name PROF. AMAN ULLAH AWAN

Supervisor:

Signature ……………………

Name MR. AFTAB KHANDesignation Lecturer

Institute of Management SciencesUniversity of Science and Technology, Bannu.

Dedicated to

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In The Name of

The Great, Merciful and kind.

3

PREFACEBanking is the backbone of the economy of any country. In Pakistan, banks are now getting the

attention and support of the government, to nourish and initiate the developmental projects in

this Country. Banks have also attained a high level of initiation, productivity, and growth. One

such bank with new policies and strategies pushing forth towards progress is United Bank

Limited, which has since its inception shown remarkable achievements and discovered new

avenues of innovative banking.

During my two months Internship in UBL, Main Branch Bannu, I acquired first hand

information about Consumer Banking of the bank.

Report writing is infact a crucial exercises because the performance of a student is judged

through this report. I have tried my level best to cover every aspect of this specialized banking

activity, asses the working and performance of the Center and forward solutions for its further

improvements.

A number of persons have offered their help and guidance in writing this report. I express my

thanks to my supervisor MR.AFTAB KHAN, and my manager MR. JAVID KHAN. I would

also like to thank to the other staff members of UBL, especially MR. HANIF ULLAH KHAN ,

without whose support it was impossible for me to do this tedious job.

ARSHAD MEHMOOD

BBA-IT (HONS)

Roll No.832

Session 2006-10

4

ACKNOWLEDGEMENT

In completion of this work I am thankful to Almighty ALLAH, as I firmly believe, without his

gracious help; this accomplishment would not have been possible.

First and foremost, my deep appreciation, gratitude and indebtedness to my supervisor

MR.AFTAB KHAN, Lecturer, Institute of Management Sciences, University of Bannu, for his

continuous encouragement, moral support and generosity in sharing his time and knowledge

during my studies.

I wish to express my sincere gratitude to personnel of UBL, Main Branch, Bannu, for their help

and guidance during my Internship.

Thanks to the constraints of academic protocols, that those who were and are always first in my

mind are being mentioned last. They are my parents and my loved ones. It is, I believe, their

sincere prayers, which were a constant source of strength and inspiration to me that resulted in

the completion of this work. I dedicate this work, blended in my boundless love and affection, to

them.

ARSHAD MEHMOOD

BBA-IT (HONS)

Roll No.832

Session 2006-10

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EXECUTIVE SUMMARYNow a day’s strong and efficient capital and financial institutions are the basic requirements of

each country. So no country can be considered strong without having strong enough capital and

financial institutions and markets. One of the components of these financial institutions are the

banks. No one can deny the role the banks are playing in the economic development of a

country.

In Pakistan’s banking sector, UBL is one of the leading commercial banks. Very renowned

bankers such as I.I. Chundrigar and Agah Hassan Abidi established UBL in 1959. From the very

beginning, UBL was showing very good performance but in 1974 after the nationalization of

commercial banks, the bank has received some very severe financial shocks. The shocks

received in 1995 were so severe that SBP had to assume the control of the bank in order to save

it from bankruptcy. But after taking over the management of the UBL by the new set-up under

the leadership of Zubyr Soomro, the bank was successful in rebuilding its shattered image. The

new management started new schemes and injected new concepts in order to improve its services

to the clients. Now the bank is in very good financial position and also has gained its lost

Goodwill.

My two months internship in UBL Main branch Bannu, gave me a very good deal of the

practical experience about the bank, its personnel and various services it offers to the clients.

Although two months duration for studying organization by no means is enough but I have tried

my ever best to cover all the areas of the bank in my report.

This report highlights the operations and functions of bank. Banks acts as financial agents to

their customer; in return they get reward for their services. Banks play important role in

development of society. A strong economy must have a good banking system.

United Bank Limited is one of the leading banks in Pakistan. This report explains how different

functions of UBL works and what are their services. During the critical analysis, it was observed

that UBL is one of the leading commercial banks of Pakistan.UBL has a greater responsibility

for safety and prudence. since commercial banks must make a living by putting the money at

their disposal to work, they are faced with the problem of making a living without jeopardizing

the safety of their institution and UBL is doing all this very efficiently.

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TABLE OF CONTENTS

S.No. Topic Page No.

Preface i

Acknowledgement iiList of Tables viList of Graphs and Charts viiList of Acronyms viiiExecutive Summary ixChapter – 1

1. INTRODUCTION 1.1 Background of the Study 11.2 Objectives of the Study 11.3 Scope of the Study 11.4 Importance of the Study 11.5 Limitations of The Report 2

Chapter – 2 2. EVOLUTION OF BANKING

Introduction 32.1 Growth and History of UBL 32.2 Subsidiaries 42.3 Joint Venture 42.4 Role of UBL in NWFP 52.5 Mission Statement of UBL 52.6 Objectives of UBL 5

Chapter – 3 3. ORGANIZATIONAL STRUCTURE3.1 UBL Organizational Structure 73.3 Division of UBL’s Office 83.6 Organization Hierarchy chart 93.7 Location map work of UBL in PAK 12

4. DEPARTMENTATION

4.1 Accounts Department 134.2 Remittances Department 14

4.3 Deposits Department 16

2.4 Foreign Exchange Department 18

4.5 Advance department 20

Chapter – 5

5. SERVICES & PRODUCT OF UBL

5.1 GENERAL DEPOSIT 23

5.2 CURRENT DEPOSIT 23

5.3 SAVING DEPOSIT 24

5.4 FIXED DEPOSIT 25

5.5 UNI-CASH 25

5.6 UBL WALLET VISA CARD 26

Chapter – 6

6. SWOT ANALYSIS

6.1 Strengths 29

6.2 Weaknesses 29

6.3 Opportunities 30

6.4 Threats 30

Chapter – 7

7. FINDINGS AND RECOMMENDATIONS 33

7.1 Deposits Department 33

7.2 Remittances Department 34

7.3 Cash Department 35

7.4 Bills and Clearing Department 35

7.5 Advance department 36

BIBLIOGRAPHY 38

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CHAPTER # 1

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INTRODUCTION

1.1 Background of study-

United Bank of Pakistan is one of the leading and first government recognized bank in Pakistan.

Aimed to be the pre-eminent financial institution in Pakistan and achieve market recognition

both in the quality and delivery of service as well as the range of product offering.

The reason of its development was that the UBL in addition to being a commercial bank in the

public sector at a time when all other commercial banks were in the private sector

also came to acquire certain characteristics which to this day set it part from other commercial

banks of the country.

The establishment of UBL thus signaled the achievement of another milestone in the

development of the banking industry in Pakistan.

1.2 Objective of the study

For getting the Master degree of Business Administration, each student is required to spend at

least two months as an internee in a recognized organization. The students are required to work

in their own field in which they have done their specialization.

Main purpose of this program is to make students familiar with the practical work, as there is

great difference between what they have learnt during their MBA. And how the job is practically

done.

Another important aspect of the internship program is that internee is placed in most of the

departments of the organization through job rotation. It provides a glance of each department, as

the period is too short for learning in detail.

1.3 Scope of the study

It is a compulsory requirement for the award of Master’s Degree of Business Administration.

It will help the present and prospective students of the department in making assignments and

writing reports on the UBL, evolution of banking, importance of banking and different

operations.

It can also provide help to UBL’s management in identifying their Strengths, Weaknesses,

Opportunities and Threats.

It can also provide assistance to students seeking financial data for analysis.

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1.4 IMPORTANCE OF STUDY

Banks play a central and very important role in the economic life of a country, that’s why they

are considered as the lifeblood of modern economy. Today no one can deny the importance of

banking in the economy. They facilitate and expedite trade and commerce and provide a variety

of services that one can’t imagine with out banks.

I have chosen the United Bank Limited Pine View Road branch for my internship

because it has all the departments a bank could have.

Besides this, UBL plays an important role in the economic development of Pakistan.

1.5 Limitation of the Report

There were however some limitations and that is the two months durations of internship are

nothing to gain entire knowledge of banking. Moreover the bank does not want to provide data

particularly about the rightsizing of employees and stuck-up loans due to various reasons, so the

reader must also keep this in mind.

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CHAPTER # 2INTRODUCTION

2.1 Historical Background and Growth of UBL:

“The reserve Bank of India which was given the responsibilities of exercising

control over banking sector did not perform its duties properly in Pakistan.”

The real momentum was given to banking system when the State Bank of Pakistan,

was established on 1st July 1948. But a real turn took place in the banking section

when a renowned banker Agha Hassan Abdi took initiative of opening a bank,

which he announced to the different mode from the others. His dream became true

when the first branch of United Bank Limited (UBL) was opened at Macleod Road

(now 1.1. Chandrigar Road Karachi) on 7th November 1959.

This achievement was recurred after passing through many problems and after

completion of a lot of legal formalities. UBL was established on 24 th July 1959 as a

11

public limited company with registered office at 1.1 Chandrigar Road, Karachi.

The authorized capital was Rs. 2, 00,00,000 issued, subscribed and paid up capital

was a Rs 1,00,00,000 share of Rs. 101 each. . The bank currently operating through

1300, branches in all the major cities of the Pakistan and its registered office are

situated at state life insurance corp. Building # 1, 11. Chundrigar road, Karachi.

United bank limited is one of the most famous bank working in different area of

Pakistan, UBL is now officially the second largest private sector bank in Pakistan

with its 25 percent growth in deposits to RS 237 billion in 2004.

Progressive Banking was a vision that came true in 1959 with the birth of UBL. It

brought in an era of modern banking and customer care beyond the ordinary.

The Bank launched a variety of consumer banking products and services – UBL

Drive, UBL Cash line, UBL Address, UBL Business Line, UBL Wallet ATM card

and UBL Business Partner.

UBL is one of the largest commercial banks in Pakistan with assets of over RS.

190 billion, Net Assets of over RS. 13 billion and a solid track record of 47 years.

UBL offers its services through a nationwide network of over 1300, branches

spread all over Pakistan and 15 overseas branches. The Bank earned RS 4.3 billion

pre-tax profits in 2003, a 59 percent increase over the previous year, and

announced a dividend of 22.5 per cent. This remarkable performance was based on

a record growth of 38 percent in advances, which grew from RS 72.8 billion in

2002 to RS 100.2 billion in 2003 driven by growth in deposits from RS 158.3

billion in 2002 to RS 185.1 billion in 2003.

The Bank was privatized in 2002, through the sale of 51 percent stake to a

consortium of the Abu Dhabi Group led by His Highness Shaikh Nahayan

Mabarak al Nahayan and the Bestway Group led by Sir Mohammed Anwr Pervez,.

The issue is unsecured and subordinated to payment of principal and profit to all

other indebtedness of the Bank including deposits.

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United Bank Limited is one of the largest commercial bank in the country. With

almost 47 years of good standing to its valued clients, it has stood the test of time,

producing assets of over RS. 282 billion.

It offers its services through a wide network of over 1300, domestic branches all

over Pakistan and 25 overseas branches as part of global network.

2.2 Subsidiaries:

UBL A G. Zurich (Switzerland) established in 1968. Its paid up capital of dollars 2722 thousand, deposits of dollars 5827

thousand and advances of dollars 5538 thousand as on Dec 31, 1962.

UBL of Lebanon and Pakistan established in 1968.

Its paid up capital of dollars 379000 deposit of dollars 125978 advances of

dollars 1983313.

2.3 Joint Ventures :

a. Commercial bank of Oman Limited (Mascot) established in 1982.

b. United Saudi Commercial Bank Limited (Saudi Arabia) established in

1982.

c. UBL has been presenting a very good track record since its inception into

banking business.

2.3 Branches

UBL has a large network of branches, which extends to the remotest areas of the

country. In December 1983 there were 1623 branches where in 1974 it had only

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1238 branches. At present UBL have 1096 domestic branches. and present 15

overseas branches. some names are .bahrain,Qatar,SaudiArabia,

unitedArabemirates, yemenarab republic,uk,Switzerland,Egypt,oman and the

united states.

2.4 Role of UBL in KPK

The role of UBL has developed largely; through out the country in very short

period of forty seven years. The bank is operating in the entire country and has

branches all over the country and overseas. In N.W.F.P, UBL is operating

successfully. The number of branches of UBL in Peshawar region is 156 up to

dec.2001 i.e. there are total 14 Hub Branches in Peshawar region and under these

Hub branches, there are 142 spokes branches. These 156 branches come under the

Peshawar Region, for which there is a Regional head Quarter (RHQ) in Peshawar.

The list of hub branches come under the Peshawar Region is as under.

1. Peshawar 6. Haripur 11. Mardan

2. Bannu 7. D.I. Khan 12. Swabi3. Mansehra 8. Mingora 13. Kohat4. Timergara 9. Nowshera 14. Abbotabad5. Hangu 10. Bathela

2.5 Mission Statement of UBL“We shall dominate Pakistan’s financial markets and be the leading bank of

Pakistan in term of quality of customer services, assets, profits and reserves. We

shall consistently try to be among banks in the Pakistan. Comparing over selves to

international standards. We shall be a modern universal bank. Our employees will

be efficient, motivated and have corporate pride”

2.6 Objectives of UBL

Objectives mean the end towards which an activity is aimed. An organization

without objective is like a person who is wandering with no purpose. All the

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activities of an organization are due to its objectives and goals. And for the

attainment of those objectives, various types of financial products and plans are

developed. UBL has also some objectives, which are as under.

To ensure growth and development of the bank. To use resources of the bank efficiently. To get more deposits. To participate in development of the country. Paying special attention to the areas, which are under developed. To develop SME’S. To increase industrialization in the country. To provide financial help to the farmers. To provide employment opportunities. To make people more of mind to have saving habits

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CHAPTER#3

ORGANIZATIONAL STRUCTURE

Organizational structure of a firm provides boundaries for authority of persons and

clarifies individual responsibility and authority. It shows who is responsible to

whom, and who has the authority to give orders to someone. An organization

having dual authority or vague structure would not have clear direction and will

face hurdles in getting its goals and objectives. Therefore, it is very important for

any organization to have a well-established structure of responsibility and

authority. An organization structure should be so designated to clarify the

environment so that everyone knows his duty and who is responsible for what. It

results to remove obstacle to performance caused by confusion and uncertainty of

tasks and to furnish a decision making communication network reflecting and

supporting enterprise objectives.

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3.1 UBL ORGANIZATIONAL STRUCTURE:

UBL also has a well defined formal organizational structure. UBL is a very vast

organization. In the organization set up of UBL, the highest authority rests with

Board of Directors which consists of Chairman, Deputy Chairman, President &

CEO and the directors. In which four directors are from UBL, one from Pakistan

Banking Council, one from Ministry of Finance and one who is also the secretary

of the board. So the Board of Directors is an eight member team, and is responsible

for policy formulation and making important strategic decisions.

The names of the Board of Directors are as follows:

CHAIRMAN

H.H Sheikh Nahayan Mabarak Al Nahayan

DEPUTY CHAIRMAN

Mr. Muhammad Anwar Pervez, OBE, HPK PRESIDENT & CEO

Atif R. Bokhari DIRECTOR

Zameer M. Choudrey DIRECTOR

Omar Z. Al Askari DIRECTOR

Muhammad Tehsin Khan Iqbal DIRECTOR

Ahmad Waqar Director

Javed Sadiq Malik

The authority, which is second highest, lies with executive committee. It consists

of seven members, including the president and secretaries are in charge of

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divisions. The members are Senior Executive Vice President (SEVP) of UBL.

There are twenty divisions, which have their own Senior Executive Vice President

(SEVT). Executive Vice President (EVP), or Senior Vice President (SVP), the

SEVP to international divisions manages the operations of foreign countries

branches.The rest of the divisions work along their functional lines as shown in the

organizational chart.

At the National level, UBL has a network of branches spread allover the

country and its field operations are one of the most extensive among the leading

banks in Pakistan. At provincial level the bank is managed by SEVP, who is

assisted by General Manager (OM), who is EVP or SEVP. The OM is responsible

for either a number of regional areas or in charge of various provincial departments

such as Administration, General Recovery, Loans, Inspection, etc. The complexity

and extensiveness of the operations in a given province determine the number of

OMs. OMs are assisted by circles executives who are of the rank of SEVP or VP.

The entire country is divided into Circles which are further divided into Zones.

The circles are administered by circle executive. Each zone is comprised of a

number of branches, which are managed by branch managers who are mostly

Grade I or Grade II officers. Some large sized branches are also managed by

AVPs.

3.2 DIVISION OF UBL’S OFFICE Basically there are two types of offices in UBL

1. Head Office

2. Regional Head quarters

1. Head Office

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Head office of UBL is in Karachi. It exercises overall control over the bank. The head office (HQ) has various functions.

It formulates polices and ensures its implementation.

To supervise and control the operations of the regional offices.

To formulate policies and ensure its implementation by the field offices.

To deal/liaison with foreign donors like IBRD (World Bank), Asian

Development Bank, Islamic Development Bank, KFW (German Bank),

FMO Netherlands etc.

To deal with Ministry of Finance.

To supervise RHQs.

To sanction loan applications received from the branches.

To deal with ministry of finance.

2. Regional Head Quarters

There are Eleven Regional Offices of UBL which fully cooperate with the

Head Office. UBL Regional Offices performance with reference to

sanctions, disbursement, recoveries, and deposit mobilization is of vital

importance to the bank operations. The functions are as follows:

To implement the policies formulated by the Head Office.

To extend the credit facilities by keeping in view all the prescribed

conditions.

To recover/collect the existing long-term credits extended by the bank as per

schedule.

To assist customers in the process of development by advancing loans for

viable financial projects.

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All the 1056 UBL branches are the representatives of the bank. These

branches provide commercial as well as non-commercial banking facilities.

Various structures involved in the organization of UBL are given below.

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3.3 Organizational Hierarchy Chart

Board of Directors

Executive Committee

President/CEO

SEVP

EVP

SVP

VP

AVP

Office Grade 1

Non Clerical Staff Clerical Staff Officer Grade III Officer Grade II

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3.4 Organizational Hierarchy Chart of consumer sector in UBLBoard of Directors

Executive Committee

President/CEO

Group Executive

Global Sales Head

Head Secured Financing

National Sales Manager

Senior Sales Manager

Regional Sales Manager

Non-Clerical Staff Processors Relationship officers

Relationship Manager

Head Un-secured Financing

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3.5 Location map

WITH an integrated network of over 1000 branches in Pakistan as well as Overseas, UBL gives you direct access to a comprehensive range of better banking facilities to help you monitor your business locally as well as internationally.

www.ubl.com.pk

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CHAPTER # 4

DEPARTMENTATION

UBL like other commercial banks established various departments for the

performance of various functions. Some of the departments of UBL are Foreign

Exchange department, Advance Department, Accounts Department, Deposit

Department and Remittance department etc.

Now we will highlight the various function performed by the different

departments in the UBL.

4.1. ACCOUNTS DEPARTMENT:

The Accounts department of UBL mainly deals in the accounts of customer

maintained at the bank. The accounting book maintained for these services is

known as cashbook. The summary book and ledger are maintained through

computer.

The cashbook is used for balancing the cash received and cash paid at the end of

the day.

Kinds of Accounts:

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i. Current Account

ii. Saving Account

iii. Fixed Account

i. Current Account:

There is no restriction on the deposit and withdrawals of money in this account..

ii. Saving Account:

In Pakistan saving deposit account can be opened with a very small amount of

money, and the depositor is issued a chequebook for withdrawals. Return is paid at

a flexible rate. Calculated on by yearly basis. However, withdrawals of limited

accounts are generally allowed only one or twice a week. The consumers have to

give a notice of about two weeks before the withdrawals of large amount” the

minimum amount of money required for opening the saving Account is Rs. 500/-

while to remain the A/c is running position the account holder has to maintain a

balance of Rs. 100/- for the withdrawals are concerned there is no restriction but

the bank discourages very regular withdrawals of small amounts.

iii. Fixed Account:

“The deposits that can be withdrawn after a specified period of time are referred to

as fixed or term deposits.” The account holder keeps a specified amount of money

for a definite period of time. The amount deposited is not withdrawal by cheques.

And after the maturity of the previously agreed rate of return.

A single individual, partners and companies, too can maintain such accounts as

well. The period of which these deposits are help by the bank ordinarily varies

from three months to 60 months with the agreement made between the customer

and the banker.

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iii. Business Bank Account.(BBA A/C):

This is the special type of Account (A/c) offered by UBL. This type of A/c is

opened for the students and salary holders. In this A/c there are some facilities

offered for the A/c holder such as……..

I. No restriction of minimum balance.

II. ATM facility.

III. No restriction on drawing.

IV. Transfer facility.

V. Receiving from others Banks with minimum commission.

VI. Receiving of salary from others Banks before 1st of the month.

4.2 REMITTANCES DEPARTMENT:

This department is concerned with the transfer of money from one place to

another. In this, various modes of transferring money are available which are

discussed below.

A. Mail Transfer (MT):

In this the money is transfer from one place to another by mail. If the person is

account holder of the bank, then the banker debit his account with the amount of

money he wants to transfer. The concerned bank officer will prepare the necessary

vouchers to make the mail transfer complete. It contains on;

1) Debit Voucher: Debiting the account holder for the amount to be sent

plus the commission and postage charged.

2) Credit Voucher: credit the drawer branch

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3) Mail Transfer Register: The remittance is entered in the mail transfer

issue register.

But if the person is not an account holder in the initiating branch, then he has

first to deposit the stated money with the same bank and then the above process

starts.

B. Telegraphic Transfer (TT):

People who want to transfer money quickly and without delay use this type of

transferring money. This type of transfer is also very simple. The person who

wants to transfer money fills the TT application form. The applicant asked to

deposit money to be remitted plus the amount of commission and telegraph

charges. After the amount is deposited with cashier, the officer incharge

remittances will prepare the TT message. The TT message also carried a test

number which is a sum of values derived from number items like date, amount,

and the drawer branch consecutive number etc. then this telegram is sent to the

bank where the money is to be transferred. After receiving the telegram the drawer

bank makes payment after the test number is correctly decoded according to the

procedure prescribed.

C. Demand Draft (DD)

In this way the person who wants to remit money goes to the bank and fills the

application form by filling the name of the drawer branch, amount and the payee’s

name. The amount to be remitted is deposited with the cashier along with the

commission on DD and the in charge of remittances department will prepare the

instrument. It is signed by two officers of the branch and is then handed over to the

applicant. The amount can be received by presenting DD to the drawer branch

personally or through a bank.

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D. Uni remote (ON LINE TRANSFER).

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

country.

Thorough on line facility you can transfer the amount from one city to another city

in no time without commission (if you are account holder of the Bank).

In this method the transferor A/c are Debited by the Bank and the transferee A/c

are Credited (to whom the amount is transferred) by his Bank where he has A/c.

The amount is transferred in no time. Online transfer bring great revaluation in the

business world and make business more secure and fast.

The trader transfer money to the seller through bank, and the seller sent goods to

the buyer as soon as possible, and thus buyer save his traveling charges , as well as

he also not close his business of the buying of goods for the business.

4.3 DEPOSIT DEPARTMENT:

One of the important functions of the bank is to receive surplus money from the

individuals, firms and institutions etc. It can be said about the deposit that it is the

lifeblood of any bank. A bank cab not runs its business without the deposits.

The bank usually receives deposits in the following type of accounts, which are as

under.

1) Current Account

2) Saving Deposit Account

3) Fixed Deposit or Time Deposit

4) Call Deposit

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`The classification of deposit chiefly on the basis of time and the purpose for

which the account is opened with the bank.

Now we will study the various types of deposits in detail:

1. Current Account:

This type of deposit is withdrawal by crepes whenever the customer draws crepes

on this account. As such deposit is also termed demand deposit. In Pakistan,

bonds do not allowed any interest on such deposit. And the bond treat these

deposit as current liabilities. The banker also requires the customer to maintain a

minimum amount of balance. If the customer fails to do so, then bank makes

deduction from such accounts/deposits under the heading on incidental chargers.

“Until a few decades bank, the proportion of current deposits in relation to fixed

deposits was very small. In recent years, however, the position has changed

remarkably”.

2. Savings Deposit Account:

In Pakistan a saving deposit A/c can open with a very small amount of

money and the depositor is issued a chequebook for withdrawals. Return is paid at

a flexible rate calculated on six months basis. However, withdrawals of limited

amount are generally allowed only twice a week. The customer has to give a notice

of about two weeks before the withdrawals of large amounts.

Such account may be maintain and run by an individual, partners and companies as

well. The most important character of this type of deposit is issued with a

chequebook for withdrawals. The account holder is returned with profit rate,

calculated on six months basis.

3. Fixed or term Deposit:

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It is payable to the customer after the expiry of a certain duration. The duration of

fixed deposit are various from three months to sixty months. The bankers offer

different rate of return on the fixed deposits depending upon the duration of the

deposit. The amount deposited in fixed account is not withdrawn able. The

amount is received back after the expiry of fixed period.

One of the most important aspects of term deposit for the banks is that the money

of this deposit can be invested in various what the bank consider profitable.

This type of deposit is also known as single transaction account. It is because the

account holder cannot operate upon the account like other deposit accounts. The

banker usually gives a receipt of the fixed deposit mentioning the amount of

money and date of maturity of the deposit. No pay in slip book, passbook or

chequebook is issued to the customer.

4.4 FOREIGN EXCHAGE DEPARTMENT:

In today’s world no one country can keep itself self-sufficient in every area of life.

So they have to trade with other countries for the things, which she does not have.

But such Business required a medium of Exchange, which is acceptable to the

countries concerned. So they usually do business through the medium of stable

currencies of the world.

For such International Business transaction the bank utilize the service of its

Foreign Exchange Department. The department plays very crucial and important

role in international trade. The service, which Foreign Exchange Department of

the banks offers, is the parallel banking with general banking and additional

30

function of import and Export Business controlled by State Bank of Pakistan. The

rules and regulations are framed by the SBP.

In UBL its foreign exchange department as per SBP regulations carries out the

international banking. The SBP exercises full control over the Foreign Exchange

Business. No transaction is considered effective without permission from the SBP

under Foreign Exchange control Act 1947. Foreign Exchange regulations are

issued though the Exchange control Department of the SBP.

Any transaction in the international Banking shall be carried out at rates

determined by the SBP. For this purpose the SBP fix the rate of US dollar with

other currencies. Foreign Exchange rate committee in Karachi Head Office does

this by the formula approved by SBP and as published daily. It also makes sure the

rates approved are conveyed to the braches on the same day.

Foreign Exchange Department provides the following services to the customer.

Foreign Exchange Currency Accounts

Foreign Exchange Remittance Facility

a. Foreign Currency Account:

“Government of Pakistan has introduced many important reforms in foreign

exchange control in the county in February, 1990, for the purpose of strengthening

foreign exchange reserve.” UBL as an authorized commercial bank offer the

facility of foreign currency account in four currencies, which are US Dollar,

Japanese Yen, German Mark, and UK Pound sterling.

The foreign currency account facility by UBL is available both for Pakistani

citizen currency account is similar to opening of local currency account. The

account may be an individual or joint account. There are two types of foreign

currency account.

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Current Account

Saving Account

i. Current Account:

Just like local currency current account holder no interest is given to the

foreign currency account holder. Foreign Currency A/C are also exempted from

Zakat, Income Tax, Wealth Tax, the Account holder can shift his money abroad

through Foreign Exchange remittance services

ii. Saving Account:

UBL offers a very handsome rate of return foreign currency saving accounts.

The profit is paid in currency in which is opened. This account too is exempted

form. Zakat, Income Tax and Wealth Tax. The facility of inward outward

remittances is granted to the customer.

Purchase and Sale Of Foreign Currencies:

Foreign currency department of UBL also has a very extensive system for

the purchase and sale of foreign currencies. UBL is an authorized dealer in the

touring currency, given the authority by SBP. UBL deals in the sale and purchase

of the following foreign currencies.

US DOLLARS UK POUND STRELING JAPANES YEN GERMAN MARK SAUDI RIYAL UAE DARHAM

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4.5 ADVANCES DEPARTMENT :

Besides deposits the other major function of the bank is to advance money to the

clients. This function of the bank contributes a great deal to the revenues to the

bank. Due to its utmost importance to the bankers’ success, this area is given

special importance and attention.

Bank normally makes advances of the types:

Commercial Finance

Agriculture Finance

Industrial Finance

Export Finance

Import Finance

The banks also advance to small size businesses and construction companies etc.

Many UBL Branches are having departments for granting advances to the

borrowers. Normally, it is responsible for performing the following functions.

a. To handle all the cases of short or long term loans.

b. To process all the cases concerned.

c. To forward the cases for approval and consideration to the higher

authorities.

d. Direct dealing with the borrowers.

e. To insure the disbursement of loan.

f. To inform the high authorities about various loans.

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UBL make advances in the following ways.

(a) BY CASH CREDIT:

Through this credit facility, the banker advances loan to the borrower after

having tangible asset as a security. Main characteristics of this facility are that the

total amount is not given to the borrower at once rather it is given in installments,

or when over required. The borrower has to the interest only on the amount

outstanding against him.

The cash credit facility is given either through by hypothecation or pledging

of goods. Some requirements are as under.

i. Custody of stock remains with the borrower.

ii. Bank lien on the stock.

iii. Stock hypothecated must be insured against fire etc.

iv. Customer must submit the stock report on monthly basis.

v. Frequent stock verification to be done by UBL.

vi. Bank may send officers or staff in order to supervise verification

Some characteristics of pledging asset against loan. Stocks are pledged with

under banks lock and key.

Stock must be duly insured against for and burglary.

On monthly basis stock reports has to be prepared by the borrower duly

incorporating delivery of goods, if any during the months.

Delivery of goods/stock is made against cash payments.

(b) BY DISCOUNTING BILL OF EXCHANGE:

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This credit facility is a very advanced form of advancing money/credit to the

borrower. It is also termed as factoring. In this facility, the bank purchases the bills

of beaching from the borrower. The bank gives face value of the bill to the

borrower after deducting interest on the remaining period required for the bill to

mature.

(c) BY OVER DRAFT

Some time it happens that a reliable, regular customer may ask for a very

short period credit. The bank accommodates such customers through the facility of

over-drafting. In this facility the bank charges interest on the outstanding amount

only. This facility may be given without any security or is provided against some

collateral. It might be a temporary facility or an over-draft-limit may be

sanctioned to the customer, which may be used again and again during a certain

period of time.

4.6 CLEARANCE HOUSE:

It is an association of banks; usually set up in a given locality for the Purpose of

inters changing credit claims. Nearly, everywhere this function is performed by the

central bank of a country. But in cities where there is a no branch of central bank,

other authorized banks perform this fiction. In Pakistan, the areas where there is no

central bank branch the function of clearing house is performed by National Bank

of Pakistan (NPB).

In undertaking the process of inter changing credit the following procedure is

adopted. In banking business when creditor asks for some payment, it is always

the chouse through which the payment is asked for. But there arises to situations

when the payee for payment through cheques. The payee may be account holder in

the same bank i.e. of drawer or he may not be the account holder in the same bank.

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When the payee is an account holder in the same bank, then the cheque is directly

transferred from one to the other. And the total assets and liabilities of the bank

remains the same. Then in such cases the payee deposits cheque in this bank drawn

on some other bank. The bank with the cheque is deposited becomes the creditor

of the drawers bank. The debtor bank will pay this amount of the cheque by

transferring it from cash reserves if there is on off setting transaction.

In daily business of the bank, there are a number of cheques deposited with one

bank, which are drawn by other banks. The drawer bank becomes indebted to the

bank in which the cheques are deposited for collection. In the same way the

creditor banks also receive cheques drawn on other banking giving blooms of

payment by them. Now it will be very inconvenient, uneconomical for the bank to

transfer cash for fulfilling reciprocal obligations. The best, easiest and safest way

will be to off set the reciprocal claims of each other and transferring only the net

amount due by any on the Clearing House provides this facility.

The clearance house is the branch of central bank of Pakistan or in case of area

where on central bank is available. The representative of each bank meets at fixed

time on all business day of week. This meeting is held in the bank performing

duties of clearing house. The messenger of the various commercial banks gathered

at the clearance house and transferring cheques payable by other banks while

collecting drawn on their banks. A summary sheet is prepared describing the

number of cheques received and delivered by a bank at the clearance house.

Normally, the banks maintain two books for clearing house.

Inward clearing book.

Outward clearing

Book.

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CHAPTER # 5

SERVUCES &PRODUCT OF UBL

In banking services UBL provides a number of services. These services include

customer banking, merchant banking and corporate banking. The following is the

brief description of various services offered by the UBL to its customers.

5.1 General Deposits:

Due to the ever-increasing need for capital there are now a few business

enterprises, which are carried, put totally with the owner’s equity/capital. So

borrowing is becoming an essential feature of today’s enterprise. But in case of

banking business borrowing from outside sources is all the most vital. And this is

very common observation in the banking business that in a given bank’s found

treasures the borrowed capital is much greater than its own capital. Bank borrows

mostly in the form of various deposits the greater the difference between the rate of

borrowing and lending; the greater will be the profit margin, for the bank. But the

bank look forward for more deposits, as this will create more funds available for

employment. So greater deposits will result in greater return for the bank and as a

result greater profit. In banking business these deposits are the lifeblood of a bank.

In deposit being the main advantage for the customer is as debts.

When bank receive a deposits from a customer a relationship of debtor and creditor

is established. Customer becomes creditor while bank takes the responsibilities of

debtor. On receiving of deposits the acquired liability for that much amount while

becoming of the deposit, it can invest anywhere it deems right with out consulting

the creditor of the deposit. But it does not mean that the bank becomes the sole

owner of this amount, rather through an implicit agreement the bank will be liable

to pay the depositor money as and when the depositor demand.

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5.2 Current Deposits:

UBL offers the facility of current a/c both in Pakistan rupees and foreign

currencies. On maintaining such accounts these is no restriction on the customer

residence. These accounts are usually maintained by businessman and business

concerns. It is become that they can take and deposit money as money times as

they deem right during the banking hours. As such these accounts are payable on

demand. In Pakistan on offer any interest. Some of the solvent features of this a/c

are as.

i. No restriction on number of with drawls from a/c’s and on prior notice is

required for with drawl.

ii. These A/c’s are regulated under the rules and regulation of SBP especially

deposits of $1000 is free from all exchange control.

iii. Conversion of these funds into any currency and transfer for of these finds

into any country is not restricted.

iv. The foreign currency A/c’s are acceptable as a collateral against rupee loans.

v. In case of payment to third party standing instruction by customer is

required.

vi. By debiting these a/c’s a TC can be obtained.

vii. For obtaining lockers facility preference is given to foreign currency A/c’s

holders.

5.3 Saving Deposits:

The main objective of maintaining saving deposits in running status by the

bank is to develop saving habits in the people of our country. Such people may

include young people, married or household woman. These people can start their

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a/c by depositing only a small amount at a time. These accounts can also be opened

in foreign currencies. Some year ago it was not possible to withdraw money from

saving a/c more than two times in a weak and prior notice was to given the bank

for drawing money above a certain level. This restriction is now removed by SBP

and the customer can deposit and withdraw money as and when required by the

client during the banking hour.

Some of the silent features are as under:

Interest is payable by the bank in accordance with the rates announced

by SBP.

No restriction on the number of withdrawals and the amount of

withdrawals during a week.

The funds of this a/c can be utilized for purchasing Government and

other securities such as foreign exchange leader certificates, special saving

certificates and foreign currency bearer certificate.

Principal and interest earned there is on exempt from income tax and

Zakat.

In accordance with Govt. of Pakistan regulation, customer’s deposits

are free from all exchange controls.

If payment of a certain amount is to be made to a third party at regular

intervals i.e. monthly, quarterly, standing instruction to this effect can be

issued to the banker.

TC can be issued to the customer by debiting the customer’s a/c for

the amount.

Preferences given to foreign currency saving account holder in

providing locker facility.

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Conversion and transfer of the currency into any other currency or

country is not restricted.

The rate of return on these a/c’s are not fixed and are computed and

announced at the end of the half year after half yearly and yearly closing in June

and December respectively.

5.4 Fixed Deposits:

These deposits are created by a single as such there are two transaction involved.

One is when some body deposits the money and the other when the customers

withdraw the money after or before the due date. In case of withdrawing the

deposit before maturity no interest is paid to the deposit holder. The rate of return

on time deposits various with the duration for when the deposit is created. The

duration various from a day as long as five years.

5.5 Uni cash:

Now days carrying cash while going out of your place is very risky. Every body

wants maximum security while keeping is money in his pocket. People make use

of TC and other various credits cards for this purpose. UBL provides such facility

through UNI-CASH the management of UNI-CASH is carried out in following

ways.

a. PIN (Personal Identification Number)

Personal identification number (PIN) is very important number allotted when a

UNI-CASH card is issued to the customer. This number is made unique by giving

four-digit can financial number and when it is used in conjunction with the UNI-

CASH card is enable the customer to avail the cash point facilities. The allotted

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PIN number is kept event confidential form the bank staff by printing it in a special

number buy the computer on a pre-sealed, tamper proof PIN millers. These PIN-

MILLERS can only be seen when the customer opens the envelope.

b. Pin Change:

When a customer after availing the facility first time with the UNI-CASH card,

he/she will be required to change PIN (Personal Identification) number is sought

from security point of view. The change number selected by the customer should

be such that the customer can easily remember it and can not be easily guessed by

other.

c. Card Serial Number:

Card serial number is given to a particular UNI-CASH card which the customer

can know by looking at the card. The first line contains the UNI-CASH card serial

number with the customer’s name, a/c number and card expiry date is followed in

the subsequent lines.

d. Withdrawal Limit:

This limit is determined at the time of depositing money for availing the facility of

UNI-CASH card. The limit depends upon money deposited.

e. Cash Points:

To facilitate the process of getting money through UNI-CASH card a number of

cash points are available in the country. The machines may be used round the

clock. UNI-CASH card are used in these machines for drawing money from the

account and for availing a number of other facilities such as the following.

i. Balance Inquiry

ii. Mini Statement

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iii. PIN Change

5.6 UBL WALLET VISA CARD:

UBL WALLET VISA is a secure innovative card providing the customers the

benefits of both an ATM (automatic tailor machine) and a debit card locally and

internationally.

With UBLVISA WELLET , the customers have the power of using your card at

more than 925 ATMs across the country and over 900,000 VISA ATM locations

world wide in 150 countries and over 5,000 ORIX locations across the nations and

22 millions VISA merchant locations world wide. It can be used 24hour day,

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

network.

ATM CARD USAGE:

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

2. Select the Language.

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

MAIN MENUE:

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

CASH WITHDRAWAL:

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

2. Select the account type.

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

MINI STATEMENT:

1. Select mini statement from the main menu.

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2. Select the account type.

3. Collect the mini statement.

PIN CHANGE:

1. Select “pin change” from the menu.

2. Use the keypad to enter your new PIN.

3. Reenter your new PIN to confirm.

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

1. Select “funds transfer” from the menu.

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

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

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

account number according to the given layout.

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

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

The Funds transfer.

DEBIT CARD USAGE:

1. After shopping, present the UBL Wallet to the cashier the UBL Wallet

is accepted at all outlets exhibiting the VISA logo as well as ORIX logo

displaying machines.

2. The cashier will swipe your UBL Wallet through the point of sale

(POS) Terminal and enter the purchase amount.

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3. It is as simple as buy, swipe & sign. Simply purchase the item, swipe

the card

At the POS terminal and sign on the receipt generated. For transactions on

the ORIX network simply enter the PIN to complete the transactions.

CHAPTER # 6

SWOT ANALYSIS

The word “SWOT” consists of four words, which are stands for Strengths,

weaknesses, opportunities and threats, respectively.

Through the “SWOT” Analysis technique one can analyze the present condition

and performance of a given organization and can prepares plans for the future.

In the SWOT Analysis of UBL the following points can be discussed in brief.

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6.1 STRENGTHS:

Its Strengths are as follows.

Having reputation for high customer banking services.

3rd 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.

6.2 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 bannu very careless

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

timely.

Low salaries to staff.

Political inter presence.

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Low market value of the bank’s stock.

Bad recovery of over due advances.

Un-satisfactory working condition of branches.

No availability of sophisticated equipments in branches.

In efficient system of recruiting and selecting of personnel.

6.3 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 expend 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.

6.4 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.

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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

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 60’s 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 Traveler’s Cheque (RTC)

with a new name of HAMRAH.

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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

bank’s 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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CHAPTER#7

RECOMMENDATIONS FOR IMPROVEMENT:

Recommendations are based on the previous sections of a report and are

suggestions that the analyst feels are required to be implemented in order to

49

improve further the standing and position of the firm in the financial world. These

are thus based on the findings and shortcomings noted in an organization while

working with it and then writing on it. Opinions of various capable individuals are

sought who through their real life experiences and deep insight are better able to

judge whether the course of action adopted by the organization is going to prove

fruitful or does it require further improvement in the form of changes in its

strategies.

Following are the findings and recommendations for various Departments that

were felt are required while consulting the staff members of UBL, Main Branch

Bannu.

7.1 Deposits Department

The comparative analyses reveal that UBL has the lowest share of Deposits

out of the total in the market. Since deposits are the lifeblood of a bank, it

should attract more customers and expand its deposit base in the following

manner

7.1.1 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.

7.1.2 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.

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7.1.3 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.

7.1.4 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.

7.1.5 Performance Appraisal

UBL should follow the performance evaluation policy strictly and award

those who bring in deposits and help it increase its market share.

Unfortunately, this has been stated in the bank’s policy but is not being

implemented.

7.2 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

7.2.1 Organizing the DepartmentThe 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

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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.

7.2.2 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.

7.3 CASH DEPARTMENT

The following recommendations are made for the Cash Department. 7.3.1 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.

7.3.2 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

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face great hardship especially when they come from far off places and find

that the cash counter is closed for the daily transactions.

7.4 BILLS AND CLEARING DEPARTMENT

The following suggestions are made for this Department keeping in view the

problems noted in it.

7.4.1 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.

7.4.2 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.

7.5 ADVANCES DEPARTMENTThere 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

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7.5.1 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.

7.5.2 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.

7.5.3 Verification of SecurityPhysical 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.

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55

BIBLIOGRAPHY

i. Annual Report of United Bank Limited (UBL), 2010-10

ii. Mr. Aftab khan lecturar in IMS UST Bannu.

iii. Sir Majid khan lecturar in IMS UST Bannu.

iv. Mr. Javed khan branch manager of UBL (Parety gate bannu).

v. Hanif ullah khan customer servecies manager in UBL (Parety gate bannu).

vi. Strategic management by Fred R David 10th Edition.

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