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Bank Management
Final Project
Submitted to: Prof. Tehseen
Submitted By:
Somia Ibrahim l1f08bbam2039
Saira Javed l1f08bbam2132
Umair Tariq l1f08bbam0163
Date of Submission: 19th
Jan, 2012
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Vision
To be a world class bank dedicated to excellence, and to surpass the highest
expectations of our customers and all other stakeholders
Mission
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, and Be recognized as the employer of choice
History of United Bank Limited (UBL)
The history of UBL can be divided into four main Phases
1 . F o r m u l a t i o n
2 . N a t i o n a l i z a t i o n
3 . P r i v a t i z a t i o n
4 . T o d a y
1. Formulation
In June 1957, Mr. Agha Hassan Abidi decided to open a Bank different from others, to
provide modern facilities to trade and industry and to promote thrift and habit of saving
amount common there by stimulating the economy as a whole. Necessary formalities
completed for obtaining registration certificate from State Bank of Pakistan to perform
business activities. After passing through all these formalities on 7th November, 1959
United Bank Ltd came into existence as a Schedule bank. The Head office of the Bank
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was established in the New Jubilee Insurance House, 1.1
Chandrigar Road Karachi. It was registered as a joint stock
company. The bank was incorporated with an Authorized Capital of Rs 20,000,000 and
issued and subscribed and paid up capital of RS 10, 00,000. Saigol family owned it and
Agha Hassan Abedi was its first managing Director. It had posted a profit of 0.7 million
in its first year of operation with just eight branches at Karachi.
2. Nationalization
As a policy of nationalization, fourteen commercial banks were merged into five big
banks. So consequently on 21st December 1974 Commerce Bank and Union bank was
merged with the UBL. Mr.Mushtaq Ahmed khan Yousafi took over the charge of UBL. Now, there
are six directors, a secretary and a president.
3. Privatization of UBL
UBL was the largest privatization attempted by the government of Pakistan, launched in
June 2001, with 21 interested parties.
It was impacted by the adverse developments of the September 11; 2001and was finally
concluded in October 2002, which left stage only three bidders. The consortium
comprising Best way Group (BG), out of the UK and Abu Dhabi Group (ADG) from the
UAE were finally the winners at is cord price. Sale proceed was Rs 12350 million. This
signaled the strong confidence reposed by these investor groups, in the improved
governance of the country, the economic potential, the banking opportunity and the
existing management of the bank.
4. UBL today
Today the bank has taken progressive step.
Change the loge
The United Bank Limited (UBL) management has launched its new corporate identity
and changed its 44 year-old-logo following its privatization.
UBL online
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Now access your account from 71 cities across Pakistan. Our
network is growing at an amazing pace and now you can avail
services like cash withdrawal, payments, deposit, stop payment, acquisition of account
statement and many more from more than 350 online branches.
Business Partner9-5 Non-Stop Banking
Banking at your own convenience has been made possible. UBL now offers 9-5 Non-
Stop Banking service at more than 450 branches across Pakistan.
Countrywide Instant Cheque Clearance
Submit a cheque in Karachi and get it cleared in Peshawar
It begun with a vision, a vision of unparallel progress and unmatched excellence true to
the spirit of the era! November 7th 1959, Pakistan witnessed an event that wouldchange the way we banked forever. It was not just the inauguration of UBLs first branch
at I.I. Chundrigar; it wasalso 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 WilliamStreet 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,
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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. The newly formed state
of Pakistan was witnessing the boom of industries and commerce cannoned by a
bank that believed in the potential growth of Pakistan. Small wonder then, by 1978, UBL
had a pledged economic department, had acquired two international banks. UBL also
launched supervised credit and small loan schemes for small to medium sized firms as
well as agriculture and had made for itself, a strong international presence for we had
branches in 4 continents.
Throughout its history, UBL has kept pace with- and often exceeded the changing
needs of changing times. Keeping the tradition of innovation alive, UBL introducedPakistans 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.
Our deposit product portfolio offers an eclectic mix for all types of financial
requirements. Whether you are an individual interested in opening a savings account, or
a businessman wanting to maintain a foreign currency account, or a small business with
a requirement of a business account for your daily transactions, our deposit products
offer you the range you require. Check out our extensive deposit products and services
and find one especially suited to your needs.
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INTRODUCTION:
Over 380 billion assets
Over 1100 branches in Pakistan and 15 overseas branches
UBL has one of the largest and strongest balance sheets amongst banks in
Pakistan
Merger of treasury and capital markets
Best domestic provider of FX services
The narrowest bid/ask spreads and the fastest quotes
It started trading currency option in 2005
It acquired the status of authorized dealer (ADD)
Over 1100 online branches in Pakistan as well as in overseas
Networking:
UBL has a total of 1,059 branches (including 15 overseas branches) of which 640
branches have on-line connectivity (FY05: 496) with the head-office through an ISDN or
satellite connection while the remaining are still to be brought on-line. Out of the total
off-line branches there are at least 211 branches in the far-flung areas of the country(FATA, parts of Kashmir) which are not automated. Critical information from these
offices is physically delivered to a nearby located main branch.
International networking of UBL includes the following countries having international
branches subsidiaries and representative offices:
1. Aden Branch
2. USA
New York Branch
3. OBU EPZ
EPZ Branch (Karachi)
4. IRAN
5. KAZAKHSTAN
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6. CHINA
7. SWITZERLAND
United Bank AG (Zurich)
8. UK
United National Bank Limited
9. OMAN
I. Ruwi Branch
II. Salalah Branch
III. Sohar Branch
IV. Ghoubra Branch
V. Industrial Area Salalah Branch
10. UAE
I. Deira Branch
II. Bur Dubai Branch
III. Al-Barsha Sheikh Zayed Road Branch
IV. Sharjah Branch
V. Khalifa Main BranchVI. Sheikh Hamdan Road Branch
VII. Musaffah Branch
VIII. Al-Ain Branch
11. BAHRAIN
I. Manama Branch
II. Seef Branch
III. Muharraq Branch
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12. QATAR
I. Corniche Main Branch
II. Salwa Road Branch
13. YEMEN
I. Sana'a Branch
II. Hodeidah Branch
Financial Highlights of UBL (2009-2010):
UBL achieved a profit after tax of Rs 11.2 billion which is 21% higher than the
corresponding period last year and translates into earnings per share of Rs 9.12 (2009:Rs 7.51). On a consolidated basis, UBL achieved a profit after tax of Rs 11 billion, an
increase of 16% over
2009.
Despite the challenging economic environment, UBL has achieved a profit before tax of
Rs 17.7 billion. This is 26% higher than last year as a result of continued improvement
in operating efficiency and margins. Provisions for the year declined substantially due to
the Bank's prudent approach given the difficult credit environment whilst the NPL
formation has also reduced year on year.
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Net interest income before provisions increased to Rs 34.1 billion, 4% higher than last
year. The Bank's low cost deposit efforts resulted in an 80 bps reduction in the cost of
deposits over last year. However, the yield on earning assets declined as average 6M
KIBOR was 39 bps lower in 2010 compared to 2009. Consequently, net interest margin
increased from 6.9% in 2009 to 7.1% in 2010.
Types of loans and volume of bank loans:
UBL offers the following loan facilities including:
Business Financing loan
Running Financing Facility
Auto Loans
Small Loans
Personal Loans
Home Loans Farm Loans
Production Loans
Development Loans
Tractor and Vehicle Finance
Non-Farm Loans:
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Livestock Financing
Fisheries Financing
Business lineBusiness Financing LoanWith 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
Cash line
Running Financing Facility
UBL Cash line is aimed to make your life easierZINADGEE
ASAAN. Whether you are a salaried individual or a
businessman
Drive
Auto Loan
UBL Drive is a unique auto financing product which offers you features, options and
flexibility unmatched by any other bank, because at UBL, You come first
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
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SMALL LOANS
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.
Personal Loan
Higher loan amounts (Up to 20 multiples of salary)
Convenient repayment schedules (Up to 48 months loan tenor)
Competitive interest rates
Mortgages Baitna Home Loans
Financing of up to AED six million
Repayment period of up to 25 years
Salary transfer not mandatory
Home Loan Facility
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.
Production Loan
Financing is available for Major and Minor crops across Pakistan. Main purpose of
financing is to facilitate farmers to purchase Agricultural Inputs such as Seeds,
Fertilizers, Pesticides, Sprayers, hired labor etc.
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Development Loan
Land Development, Equipments and Machinery
Financing for Land Improvement, Water course improvement, Tube wells, Lift pumps,Deep turbine pumps, Cotton pickers, Go down, Cold Storage, Harvester, Thresher, etc
Loan Tenure 1 to 5 years
Lump sum disbursement of the limit for a specified period.
Repayment in installments (Principal with markup).
Repayment mode monthly, quarterly and half yearly
Minimum Amount PKR 30,000
Maximum Amount as per requirement of Farmer
Tractor & Vehicle Finance
To purchase Tractors, Delivery Vans, Mini Trucks, Motor Cycle and other vehicles used
for marketing Agric Products
Loan Tenure
1 to 3 years for Motor Cycle
1 to 7 years for Tractor
1 to 5 years for other 4 wheel vehicles
Lump sum disbursement of the limit for a specified period.
Repayment in installments (Principal with markup).
Repayment mode monthly, quarterly and half yearly
Minimum Amount PKR 100,000
Maximum Amount PKR 1,500,000
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Non Farm Loans
Livestock Financing
Dairy Farming, Meat Farming, Fattening of Animals, Rearing of Animals, Construction of
Sheds, Milk storage tanks, acquire and establish modern and efficient livestock
facilities.
Loan Tenure 1 to 5 years
Monthly / Quarterly repayment mode for Dairy Farmers
Monthly / Quarterly / Half Yearly repayment mode for Meat Farmers
Minimum Amount PKR 50,000
Maximum Amount as per requirement
Poultry Farm structure and equipments, Hatchery farm structure and equipments, Feed Mills,
Purchase of Chicks, Feed, Medicines, Storage tanks, Cold storage, Construction of shed, etc.
Loan Tenure 1 to 5 years
Monthly / Quarterly repayment mode for all loans
Minimum Amount PKR 50,000
Maximum Amount as per requirement
Fisheries Financing
Fish seed, Fish feed, Manufacturing, Construction of pond, Curing and Dying by
fishermen, etc.
Terms & conditions
Clean CIB
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1 to 3 years for Motor Cycle
Markup payment frequency quarterly / half yearly for
working capital loan
Installment repayment frequency monthly / quarterly / half yearly / yearly for Term
finance loans
Minimum landholding 10 acres for Tractor Financing
Equity for Tractor 10%
Equity for 4 wheelers except Tractor is 25%
Volume of UBL Loans:
LIABILITIES 2010 2009
Bills Payable 5045815 5147259
Borrowings 45104849 35144823
Deposits and Other Accounts 550645767 492036103
Sub-Ordinated Loans 11985748 11989800
Other Liabilities 17587735 14461725
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The table shows the UBL borrowings from SBP:
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Investments:
The United Bank has done investments in following areas:
For 2010In held for securities the total investment done by UBL is almost 16629658000
rupees which includes market treasury bills, Pakistan Investment Bonds, Ordinary
shares of listed companies, Foreign securities, term finance certificates, Govt. of
Pakistan-Eurobonds, Units of mutual funds and Sukuk Bonds.
For 2010 available for sale securities the total investment done by UBL is almost
109960827000 rupees and in held to maturity securities the bank has done total
investment of almost 10346585000 rupees.In associates 7666215000 rupees investment has been done in the year of 2010
including United Growth and Income Fund, UBL liquidity plus fund, United composite
Islamic Fund, United Islamic Income Fund, United Stock Advantage Fund, UBL
Participation Protected Plan, UBL capital protected fund-II, UBL savings income fund,
UBL Islamic retirement savings fund, UBL retirement savings fund, UBL insurers limited
and Oman united exchange company, Muscat. Hence the total investment by the UBL
in 2010 is approximately of 231717214000 after minimizing the deficits.
External Rating of Bank:
Karachi, June 28, 2011: JCR-VIS Credit Rating Company Limited (JCR-VIS) has
reaffirmed the entity ratings of United Bank Limited (UBL) at 'AA+/A-1+' (Double A
Plus/A-One Plus). Ratings of the four outstanding subordinated debt instruments, TFC-
1, TFC-2, TFC-3 and TFC-4, issued by UBL have also been reaffirmed at 'AA' (Double
A). Outlook on the assigned ratings is 'Stable'. Whereas, Capital Intelligence (CI), the
international credit rating agency, has reaffirmed UBLs Foreign
Currency longterm rating at B, while its Foreign Currency shortterm rating has been
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upgraded from C to B in line with CIs sovereign ratings action on
Pakistan. In addition, the Banks Financial Strength rating has
been reaffirmed at BB+, with the Outlook upgraded from
Negative to Stable based on the Banks strong performance in 2009 and the first half of
2010.
Detail of Major Assets & Liabilities of Bank:
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The table below shows the credit rating of private banks:
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Types of Deposits & Volume of deposits
as Capital Debt:
United Bank Limited deposit product portfolio offers an eclectic mix for all types of financial
requirements. Whether you are an individual interested in opening a savings account, or a
businessman wanting to maintain a foreign currency account, or a small business with a
requirement of a business account for your daily transactions, our deposit products offer you the
range you require. Followings are the deposits that UBL offers:
1) UBL Business Partner
2) UBL Business Partner Plus
3) Rupee Transactional Account
4) UBL UniFlex
5) UBL Unisaver
6) Certificate of Deposit
7) Foreign Currency Savings
8) Foreign Currency Term Deposits Receipts
9) Regular Term Deposits Receipts
10) Special Notice Deposits Receipts
11) UBL Basic Banking Account
12) UBL First Minor Savings Account
https://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLBusinessPartner.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLBusinessPartnerPlus.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/RupeeTransactionalAccount.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLUniFlex.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLUnisaver.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/CertificateOfDeposit.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/ForeignCurrencySavings.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/ForeignCurrencyTermDepositsReceipts.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/RegularTermDepositsReceipts.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/SpecialNoticeDepositsReceipts.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/ublBasicBankingAccount.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLFirstMinorSavingsAccount.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLFirstMinorSavingsAccount.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/ublBasicBankingAccount.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/SpecialNoticeDepositsReceipts.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/RegularTermDepositsReceipts.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/ForeignCurrencyTermDepositsReceipts.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/ForeignCurrencySavings.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/CertificateOfDeposit.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLUnisaver.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLUniFlex.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/RupeeTransactionalAccount.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLBusinessPartnerPlus.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLBusinessPartner.aspx7/31/2019 Bank Management FINAL PROJECT[1]
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Capital debt of UBL:
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Investment:
Investments of the united bank limited, other than investments in associates are
classified as held for trading, held-to-maturity and available for sale.
Held for trading:
These are securities which are either acquired for generating a profit from short-term
fluctuations in market prices, interest rate movements, and dealers margin or are
securities included in a portfolio in which a pattern of short-term profit taking exists.
Held to maturity:
These are securities with fixed or determinable payments and fixed maturity in respect
of which the Group has the positive intent and ability to hold to maturity.
Available for sale:
These are investments, other than those in associates that do not fall under the held fortrading or held to maturity categories.