Internship Report UBL

EXECUTIVE SUMMARY
The banking sector in Pakistan comprises of the following types: State Bank of Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving Banks, Cooperative Banks, Speciali e! Cre!it "nstit#tions$ The S$B$P$ is the Central Bank if the co#ntry an! was establishe! on %st &#ly, %'()$ *n +ovember ,th %'-' .nite! Bank /imite! appeare! on the banking hori on in Pakistan an! starte! operations with its first branch namely 0c/eo! 1oa! now "$" Ch#n!rigar 1oa! at 2arachi$ To!ay .B/ has %3-4 5omestic an! %- *verseas Branches$ .B/ was nationali e! in %',6 b#t it is privati e! in 7337 as 8ovt$ han!e! over the management of .B/, the thir! largest party of the co#ntry, to the s#ccessf#l bi!!er 9Consorti#m of :b# 5habi 8ro#p ;.:E< = Best way >ol!ing /imite! ;.2< as they have p#rchase! -%? shares an! have electe! >$>$Shaikh +ahayan al 0#barik as Chairman .B/$ *n 0ay %)th 733( 0r$ :tif Bokhari was appointe! as anew CE* of .B/$ To open an acco#nt the c#stomer has to meet the manager with an intro!#cer$ "n!ivi!#al, &oint, Partnership, Private /imite!, P#blic /imite!, Sole proprietorship an! 0inor acco#nts are the types of acco#nts$ 5ifferent !oc#mentation is re@#ire! for each type of acco#nt b#t the application form is same for all types of acco#nts$ "n 5eposits !epartment act#al relationship is starte! with the bank, that relationship is in the form of !eposits or the acco#nts that are opene! in the bank$ :t .B/, c#stomers can !eposit in the form of c#rrent, saving, call, term an! fixe! !eposits$ 0ain !ifference between c#rrent an! saving is of the profit that is provi!e! only on saving acco#nt to the c#stomer$ "n Cash !epartment the main activity is of payment an! receipt of cash an! facility of #tility bills collection is also performe! at the co#nter of cash !epartment$ : cash book balance is maintaine! at the en! of the !ay that is been provi!e! in the form of statements that can be got from the comp#ter$ :cco#nts !epartment is responsible for all the activities happening insi!e the branch in the form of any transaction whether it is for the c#stomer or for the employees to provi!e them with #tility services$ % Internship Report
"n 1emittance 5epartment like any other bank .B/ also have instr#ments for transferring of money like Pay *r!er, 5eman! 5raft, 0ail Transfer, Telegraphic Transfer$ Aor remittances .B/ provi!e! many services namely Te 1aftar, 0oney 8ram an! Click + 1emit$ :s for as there Aoreign Exchange 5eportment is concerne! its activity is han!le! at the central branch as they have a !epartment their an! they provi!e! the many services to the importers an! the exporters in the tra!ing of pro!#cts$ Preparation of /C on behalf of importer for the exporters an! its bank is the main activity that is perform in the !epartment$ The main activity of the Central Branch, >#ssain :gahi Branch is to :!vance the money that was collecte! in the form of !eposits$ They !eposit money at low rate an! a!vance it at high rate to earn the margin of profit$ Ainancing can be ma!e in the form of cash finance, !eman! finance, bri!ge finance, consorti#m finance, agric#lt#re finance etc$ Sec#rity is of #tmost importance in this area an! sec#rity can be like mortgage, ple!ge, hypothecation of stock, raw material or the g#aranties an! bankerBs lien$ Cith their step in the fiel! of c#stomer financing like ho#se an! car financing an! their services of >amrah 1#pee Traveler check, .B/ Callet ;:T0 car!< an! their online system of .B/9*+/"+E it has been viewe! that they will make tremen!o#s achievement in the !ays to come$ "n my view .B/ has face! some har! time b#t after its privati ation an! its response to the changes in sector they will achieve what their #ltimate goal is$
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Overview Of Banking
HISTORY OF BANKING
Bank is a pipeline through which currency moves into and out of circulation.
Bank accepts !eposits an! repays cash to its c#stomers on their !eman!$ The Bank borrows money at a lesser rate of interest an! len!s it to the borrowers at a higher rate$ "t is th#s a profit9len!ing concern$ Bank cannot len! all the money that has been !eposite! with it$ "t has to keep a certain portion of the total !eposits in cash with them in or!er to meet the cash re@#irements of the in!ivi!#als an! b#siness concern$ Banking History Cor! Bank is sai! to be !erive! from the wor!s D Bancus or DBanquewhich means bench *ther a#thorities hol! the opinion that the wor! bank is !erive! from the 8erman wor! DBackE which means FGoint stock f#n!B$ The history of banking is trace! to as early as 7333 BC$ The priests in 8reece #se! to keep money an! val#ables of the people in temples$ These priests th#s acte! as financial agents$ The origin of banking is also trace! to early gol!smiths$ They #se! to keep strong safes for storing the money an! val#ables of the people$ The persons who ha! s#rpl#s money fo#n! it safe an! convenient to !eposit their val#ables with them$ The FIRST STAGE in the !evelopment of mo!ern banking, th#s, was the accepting of !eposits of cash from those persons who ha! s#rpl#s money with them$ The gol!smiths #se! to iss#e receipts for the money !eposite! with them$ These receipts began to pass from han! to han! in settlement of transactions beca#se people ha! confi!ence in the integrity an! solvency of gol!smiths$ Chen it was fo#n! that these receipts were !rawn in s#ch a way that it entitles any hol!er to claim the specifie! amo#nt of money from gol!smiths$ : !epositor who is to make the payments may now get the money in cash from gol!smiths or pay over the receipt to the cre!itor$ These receipts were the earlier bank notes$ The SECOND STAGE in !evelopment of banking th#s was the iss#e of bank notes$
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Introd !tion To Banking
The gol!smiths soon !iscovere! that all the people who ha! !eposite! money with them !i! not come to with!raw their f#n!s in cash$ They fo#n! that only a few persons presente! the receipt for encashment !#ring a given perio! of time$ They also fo#n! that most of the money !eposite! with was lying i!le$ :t the same time, they fo#n! that they were being constantly re@#este! for loan on goo! sec#rity$ They tho#ght it profitable to len! at least some of the money !eposite! with them too the nee!y persons$ This prove! @#ite a profitable b#siness for the gol!smiths$ They instea! of charging interest from the !epositors began to give them interest on the money !eposite! with them$ This was the THIRD STAGE, in the !evelopment of banking$ By experience the banks came to know that they co#l! keep a small proportion of the total !eposits for meeting the !eman!s of c#stomers for cash an! the rest they co#l! easily len!$ They allowe! the !epositors to !raw over an! above the money act#ally stan!ing to their cre!it$ "n Economics terminology we can say that they allowe! the over!raft facilities to their !epositors$ This was the FOURTH STAGE, in !evelopment of banking$ Chen every bank iss#es receipts an! most of them allowe! the over!raft facilities, there was then too m#ch conf#sion in the banking system$ The banks in or!er to earn profits co#l! not keep a!e@#ate reserves for meeting the !eman!s of the c#stomers for cash$ The fail#res on the part of the bankers to ret#rn money ca#se! wi!esprea! !istress among the peoples$ "n or!er to create confi!ence among the people, steps were taken to reg#late the banking organi ation$ : conference was hel! in +#remberg in 15 !. "t was !eci!e! that a bank sho#l! be set #p by the state, which sho#l! streamline the banking organi ation an! techni@#e$ The first central bank was forme! in 8eneva in %-,)$ Bank of Englan! was establishe! in %4'($ The responsibility of iss#ing of notes is now entr#ste! to a central bank of each co#ntry$
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COMMERCIA" BA#$I#% I# &A$I'TA#(

:t the time of partition total n#mber of Banks were 6) only$ *#t of these Banks the Pakistani
Banks were only ) , "n!ian Banks 7' = Exchange Banks were ,$ The total of !eposits of Pakistani Banks was 1s$))3 0illion$ = a!vances were 1s: %') 0illion$$ :ccor!ing to banking companies or!inance Banks are the companies, which transacts the b#siness of Banking in Pakistan$ Commercial Banks have constit#te! the most important Hpart of the int#itional cre!it in the economy of Pakistan$ Being the largest so#rce of cre!its, Banking "n!#stry is a pivot of whole the economic activities in Pakistan$ Section 6,;7:< of 'tate Bank of &akistan A!t 1*+, lays !own that the Banks m#st have pai!9#p capital = reserve of not less then 1s: - /ac = f#lfilling certain other re@#irements for !eclaring as DSche!#le! BankE$ :t the time of in!epen!ence Bank services was ba!ly affecte!$ B#t with the passage of time these are improving$ The government of Pakistan nationali e! all Banks in early %',($ This act was !one to minimi e control of few han!s over banking$ B#t this step was prove! e f#tile for the Banking in Pakistan$ So the 8ovt$ ha! to revise its !ecision in%''3$ Two Banks ;:llie! Bank *f Pakistan /imite! = 0#slim commercial Bank *f Pakistan /imite! have been !enationali e!$ Since then Banks were working well$ #ow s-ogan of t.e Banks is to serve t.eir ! sto/ers in t.e 0est 1ossi0-e /anner2 Professor Berton: Banks are the guard an ! d str "ut#r #$ %#ne& ' Similarly we can say that it is a pipeline thoro#gh which c#rrency moves into = o#tsi!e the circle$ Banks accept !eposite! of money an! repay it on !eman!$ Bank borrows money at lesser rate of interest = len!s it at higher rate of interest$ "n this way Banks earn money$ Bank !o not len! all money they collect, they keep certain portion of it as reserve to meet the #ncertain !eman! of the c#stomer$
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FUNCTIONS OF A CO((ERCIA) BANK

"n general terms the f#nctions of a commercial bank can be classifie! #n!er the following main hea!s$
12 ACCE&TI#% 3E&O'IT' Some people have an excess money an! they want to !eposits it to some honest man or an instit#tion which can give them some profit$ So the first f#nction of commercial bank is to receive !eposit there are three types of !eposits$ %$% 3e/and 3e1osits or C rrent 3e1osits Some people !eposit their excess money in the c#rrent acco#nts an! they can with!raw their money !eposite! in this acco#nt at any time !#ring the banking ho#rs, so bank is not rea!y to give interest on it$ %$7 4i5ed 3e1osits These !eposits are fixe! for a partic#lar perio!$ Commercial banks also pay an interest on these acco#nts$ :n important thing relate! to it is the varying interest rates for the !ifferent perio! !eposits$ "nterest rate increases with the increase in the fixe! !eposit perio!$ %$6 'aving 3e1osits To create the habit of savings, bank accepts the saving !eposits an! pays an interest on these !eposits$ :n! this rate of interest is greater than the !eman! !eposits$ )2 A3VA#CI#% "OA#' Bank also a!vances the loans to the merchants an! charges the interest$ "t is the maGor so#rce of its income$ "t also iss#es the loan for short term, me!i#m term an! for long term$ :n! bank receives the higher interest from the borrower for the long term loans offere!$ 62 3I'COU#TI#% O4 BI"" Commercial banks also !isco#nt the bills an! facilitate the b#siness; for example one b#sinessman p#rchases anything from another person an! promises to pay after one month$ The seller will write a bill to the b#yer an! there will be an or!er that after one month the b#yer will pay the amo#nt to the seller$ B#yer will sign on the bill$ "n other wor!s b#yer will accept the responsibility of that amo#nt$ "f seller is in nee! of money, he will take it to the bank an! will receive the money by !isco#nting the bills$ The commercial bank also may re!isco#nt it 4 Internship Report
from the central bank$ 72 CHEA& ME3IUM O4 EXCHA#%E By iss#ing che@#es an! !rafts bank provi!es cheap, me!i#m of exchange$ ,2 TRA#'4ER O4 MO#EY
The commercial bank is very helpf#l in transferring the money from one place to another by iss#ing the !rafts$ This is very pop#lar concept in the mo!ern worl! an! wi!ely #se! in the b#siness comm#nity$
+2 CU'TO3IA# O4 &RECIOU' ARTIC"E' Banks also provi!e lockers for the safety of precio#s articles$ So now everyone can sec#re his precio#s metals like gol!, silver, etc$, an! bank charges a very nominal charge for this facility$ 82 A%E#CY 'ERVICE' Commercial Banks also perform the !#ty of an agent$ "t collects an! pays on the behalf of the c#stomers$ 92 I#VE'TME#T *n behalf of the c#stomers all the banks also make an investment in !ifferent companies an! in!#stries$ :n! banks receive nominal charge from the c#stomers$ *2 CREATIO# O4 CRE3IT "t also creates an! exten!s the vol#me of cre!it$ 1:2 4ACI"ITATI#% TRA3E ACTIVITIE' "t also provi!es the finance to the foreign tra!e$ /etter of cre!its are iss#e! by the commercial banks for the foreign payments$ 112 &URCHA'E A#3 'A"E O4 'ECURITIE' The commercial bank p#rchases an! sells the sec#rities, for itself an! sometimes on the behalf of the cost#mes$ 1)2 ACTI#% A' A TRU'TEE "f a client !irects his bank to act as a tr#stee in the a!ministration of a b#siness, the bank performs this responsibility$
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162 HOME 'AVI#% ACCOU#T This type of acco#nt offers the facility to the acco#nt hol!er to save money right home an! p#t in the locker provi!e! by bank$ The key of the locker remains with the bank that sen!s its officer every week to collect the amo#nt from the locker$ +ow this facility is no longer in practice$ 162 &"A'TIC MO#EY The plastic car!s that can be #tili e! as money are calle! the plastic money$ Aor instance, a$ 5ebit Car! b$ Cre!it Car! c$ Charge Car! a2 3e0it Card "n this car! facility the acco#nt hol!er can only #tili e his own amo#nt kept in his !eposit$ :T0 ;:#to Teller 0achine< car! is the example of !ebit car!$ 02 Credit Card "n this case the c#stomer has not m#ch amo#nt in his or her acco#nt b#t the Bank gives him facility to over !raft ;*5< #p to the maxim#m limit of - lacs !epen!ing on bank9c#stomer relationship an! the market val#e of that person$ The banks are sole agent of :merican Express$ Cre!it Car! is the loan facility which is given on only personal g#arantee$ "f a c#stomer is a salarie! person then the bank iss#e cre!it car! facility #p to three times of his or her salary$ S#ppose a personBs salary is of 1s$ 76,333I9$ Then the bank will give him cre!it car! of 1s$ ,-,333I9$ B#t each bank has !ifferent criteria in iss#ing any facility$ :nn#al charges are charge! on this facility$ :n! charges are on the basis of limit of cre!it car!$ 0ore the limit of cre!it car!, more wo#l! be the charges on it$ "f the c#stomer repays the over !rafte! amo#nt to the bank within a month then the bank !oes not charge the mark9#p on it except of ann#al charges$ *ther wise the bank will charge the mark9#p on !aily basis b#t ann#al charges are also have to pay$ This is a ;C*ean )#an #r C*ean Fa+ * t&, ;a loan witho#t any tangible sec#rity<$ Beca#se here only personal g#arantee is involve!$
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!2 C.arge Card it is same to the cre!it car!$ B#t the only !ifference is that the charge car! is not a ;C-ean 4a!i-ity<2 Beca#se the bank gets the property #n!er lien or mortgage against this cre!it facility$ #OTE :ll these three car!s are #se! in that hotels, shopping malls an! transport offices where there is the facility of Mer!.ant Arrange/ents2 0erchant :rrangements means the shops to which the bank has online contact$ 5ifferent banks have the !ifferent 0erchant :rrangements$ The shop keeper enters the passwor! into the machine an! get the acco#nt information of the car! hol!er an! !ebit the amo#nt in car! hol!er acco#nt an! cre!it it in the shopBs acco#nt$ MOBI"E BA#$I#% "n mobile banking the c#stomers can !o all the transactions sitting in their homes by #sing internet$ "n this type of banking first of all yo# have to open the website of the bank in which yo# have the acco#nt$ Then yo# have to give a passwor! to enter in the !ata base of the bank$
' Internship Report
RO)) OF CO((ERCIA) BANK IN THE ECONO(Y DE-E)O.(ENT OF .AKISTAN/

Banks play an important role in the economic !evelopment of co#ntry$ "f o#r Banking system is not in accor!ance to the economic re@#irement then how it can play a vital role in o#r !evelopments$ The State Bank of Pakistan is at the apex an! all the commercial Banks have to follow the r#les of State Bank of Pakistan$ 1ole of the banking sector can be G#!ge! by the following facts: 'AVI#% MOBI"I=ATIO#( The commercial Banks namely .nite! Bank /imite! Pakistan, >abib Bank /t!, :llie! Bank *f Pakistan /t!$ = +ational Bank has opene! Branches in #rban areas = r#ral areas to mobili e savings of people$ 4I#ACCI#% O4 3EVE"O&ME#T &RO>ECT'( Banks = other financial instit#tions like :5BP, "5BP, an! P"C"C etc$ :!vances short = me!i#m terms loans for financing of the !evelopment proGects both in the private = p#blic sectors $So they helping to accelerate the rate of progress ;Economic< in the co#ntry$
E#HA#CI#% TRA3E ACTIVITIE'( The cre!it instit#tions collect the savings of people = make them available for facilitating the tra!e activities both insi!e = o#tsi!e the co#ntry$ CREATI#% C"IMATE 4OR CA&ITA" 4ORMATIO#( : !evelope! baking system stim#lates the growth of economy by creating favorable climate for capital formation in the Co#ntry$
HE"& O4 'TATE BA#$ O4 &A$I'TA# I# ACHIEVI#% MO#ETARY &UB"I'HE'(

Commercial Banks #n!er the s#pervision = g#i!ance of the S$B$P help in implementing = achieving the obGective of monetary policy, which vary from time to time$ A''I''T I# &"A##E3 3EVE"O&ME#T( %3 Internship Report
Commercial Banks are profit9seeking enterprises$ "n or!er to maximi e profit they have the incentive from S$B$P to maximi e the limit of finance$ :n organi e! Banking system keeps balance between the li@#i!ity J profitability, th#s assists in the plane! !evelopment of the Co#ntry$ &RO4IT 'HARI#% 'CHEME/ Commercial Banks receive s#rpl#s balance of the ho#sehol!s an! b#siness = pay interest on the !eposit of client$ The !epositors instea! of having a fixe! ret#rn on the !eposit will share in the profit = loss of the Bank$ The profit = loss scheme arrangement is the alternative to interest, #n!er an "slamic economic system, which is since on the experimental basis in Pakistan$
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INTRODUCTION OF UNITED BANK )I(ITED

The !ecision to establish UB" was taken in &#ne %'-' an! the company was registere! on &#ly 7(, %'-'$ .nite! Bank /imite! starte! the operations on , +ovember %'-' with its first branch namely 0c/eo! 1oa! now "$" Ch#nrigar 1oa! at 2arachi$ *n 'th +ovember %'-' the 8a ette of Pakistan notifie! an! incl#!e! UB" in its list of sche!#le! banks operating in Pakistan$ The first presi!ent of the UB" was 0r$ "$ "$ Ch#n!rigar$ 0ost of the branches of .nion Bank /t!$ were merge! into UB" to work as UB"Bs s#bsi!iary $The hea! office was at 5haka$ Cith its shortest span of time .B/ emerge! as !ynamic an! large international organi ation$ "n %'4' the 0anagement of .nion Bank /t!$ "ncorporate! in former east Pakistan, was han!e! over to .B/, which was later emerge! with .B/ in early seventies$ The Bank contin#e! its operations as private banking company #ntil 6% st 5ecember %',6 when it was nationali e!, in the large nationali ation process in the government of K#lfi@ar :li Bh#tto, along with other banks operating in the co#ntry an! other two banks namely Pak Bank of former East Pakistan an! Commerce Bank /t!$ Cere merge! with .B/$ : Bank , like the society it serves sho#l! be !ynamic as banking is abo#t people c#stomers with their nee!s an! opport#nities an! staff with skills, experience an! reso#rces$ .B/ has shown !ynamism since its inception$ There have been many changes in the str#ct#re, f#nctions an! the services provi!e!$ These changes reflect the changing re@#irements of o#r !eveloping economy as a whole an! those of "n!#stry, Commerce an! private "n!ivi!#als$ *n *ctober %'th 7337, biggest event occ#rre! in the history of .B/$ :s .B/ was privati e!$ The 8overnment han!e! over the management of .B/, the thir! largest bank of the co#ntry to the s#ccessf#l bi!!er L Consorti#m of :b# 5habi 8ro#p ;.:E< an! Bestway >ol!ing /t!$ ;.2<$ The sales agreement for the transfer of -%? shares was signe! by Privati ation 0inister :ltaf 0$ Saleem an! Bestway >ol!ing, Sheikh +ahayan 0#barak :l +ahayan at a ceremony$ This event was !eclare! as a D+ew &o#rney for .B/E$ *n 0ay )th 733(, :tif B#khari took over the charges as new Chief Exec#tive *fficer of .B/ from :mar Kafar 2han, who serve! .B/ for more than seven years$ .B/ officially anno#nce! the appointment of :tif B#khari as its CE*$ B#khari was previo#sly Senior Exec#tive Mice %7 Internship Report
Presi!ent ;SEMP< an! 8ro#p >ea!, Corporate an! "nvestment 5ivision of >abib Bank /t!$ >e was also a member of the >B/ 0anagement Committee$ "n the view of highly impressive growth an! !evelopment achieve! !#ring its (4 years of experience, .B/ has come to be accepte! as one of the most progressive an! !ynamic components of the banking in!#stry in Pakistan$
4UTURE 'TRATE%Y
.B/ expects its strong c#stomer foc#s to !rive the bankBs f#t#re b#siness strategy$ *n the !omestic si!e bank has alrea!y la#nche! its cons#mer banking b#siness$ "ncrease! investment is targete! in !eveloping H /an Reso r!es ; "nfrastr#ct#re an! internal system s#pport the aggressive cons#mer initiative an! explorations of new aven#e generation$ The first step #n!er this initiative is the la#nch of the bankBs :T0 I 5ebit Car!, bran!e! as .B/ Callet$ A#rthermore .B/ has plans to intro!#ce a f#ll s#ite of innovative cons#mer finance pro!#cts !esigne! to capt#re a significant share of the local cons#mer financing market an! tap into the c#rrent growth in !eman! of s#ch financing$
&ersona-i?ed 'ervi!e and 3yna/i! A11roa!.

in or!er to meet its goals an! capt#re the market share the Bank employe! professional an! skillf#l approach to the management, which took a series of s#ccessive meas#res to e!#cate the people of Pakistan banking an! saving min!e!$ Mario#s !rives for the mobili ation of saving an! other acco#nts were initiative$ The knowle!ge of c#stomerBs b#siness market research an! b#siness planning, visits to c#stomer at their !oor steps, !evelopment of personali e! relational ship with b#siness comm#nity, fixation of seasonal b#siness targets an! follow9#ps to achieve these goals attaine! prominence$ Alexibility, !elegation of a#thority to the lowest possible level an! enco#ragement by initiative were the key factors, with helpe! the bank, to achieve the obGectives$
CATA"Y'T O4 CHA#%E
.B/ emergence prove! catalyst an! bro#ght changes in the banking sector as a whole$ The Bank9Cons#mer relationship attaine! a new !imension an! co#rtesy, politeness an! efficiency gaine! f#n!amental importance$ Convenience for the c#stomer remaine! a core an! criterion %6 Internship Report
for this relationship$ .B/ initiate! the scene in the office an! branches re!esigne! an! mo!erni e!$
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I#ETR#ATIO#A" O&ERATIO#'
:fter achieving !ynamic progress !omestically, the Bank took a basic !ecision to make its presence felt "nternationally an! to cater to the nee!s of importers an! exporters as well as its shares in the international market, foreign tra!e, .B/ opene! its first branch in %'46 in /on!on ;.2<, the most important center of the international finance an! tra!e$ The .2 operations of .B/ were close! !#ring the year 7337 an! along with the branches of +ational Bank of Pakistan a new bank namely Pakistan "nternational Bank has been incorporate! in .2 with --? share hol!ing of .B/$ "n *man the share hol!ing in Commercial Bank of *man was with!rawn however an exchange company namely *man .nite! Exchange Company a Goint vent#re was forme! in %')6$ The bank has also with!rawn its share hol!ing the .nite! Sa#!i Commercial Bank, Sa#!i :rabia as well as .nite! Bank of /ebanon an! Pakistan S:/$ The .B/ global network with its strategically locate! overseas branches an! affiliates, covering almost all maGor financial markets of the worl!, is well positione! to act as a correspon!ent bank for Pakistan an! c#rrency transaction$ Cith its strategy to reach its c#stomers in vario#s !iversifie! markets across the globe, .B/ is progressing fast in the arena of cross bor!er vent#res with an appetite for commercial an! co#ntry risks$ To meet the re@#ire! international stan!ar!s of mo!ern banking .B/ is the first Pakistan bank to shift its international !ivision from 2arachi to 5#bai$ :t present .B/ an! its s#bsi!iaries are: .nite! Bank /t!$ Pakistan "nternational Bank *man .nite! Exchange Co$ .nite! Bank :g9K#rich .nite! :ssets 0anagement Co$ /t!$ .nite! Exec#tor an! Tr#stees Co$ /t!$ .nite! Bank Ainancial Services ;pvt< /t!$ >ol!ing Company &oint Ment#re &oint Ment#re S#bsi!iary S#bsi!iary S#bsi!iary S#bsi!iary
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REA3Y 4OR )1'T CE#TURY

.B/ has steppe! into the 7%st cent#ry with confi!ence$ 2now that the bank has been privati e! an! -%? share have been p#rchase! by investors i$e$ The Best Cays 8ro#p .2 an! :b# 5habi consorti#m electing >$> Sheikh +ahayan :l 0#barak as Chairman .B/$ .B/ has geare! itself to provi!e services, which the c#stomers in mo!ern banking expect from the bank$ The bank has also planne! to play its !ynamic role in the overall !evelopment of the co#ntry$ "t is now well e@#ippe! with latest technologies an! professional experience to face the f#t#re with !etermination an! confi!ence an! with its high aims an! sense of !irection to serve the nation with eal an! !evotion$ REOR%A#I=ATIO# O4 3OME'TIC O&ERATIO# "n %')4, the organi ational str#ct#re of !omestic operations of the bank was reforme! an! !ecentrali e! on the basis of provinces$ :s a res#lt provincial hea!@#arters were establishe! at 2arachi, /ahore, Peshawar an! N#etta in or!er to meet the nee!s of sanctioning loans an! other facilities to the tra!e, in!#stry an! agric#lt#re of each province$ : a! 2ashmir was serrate! from +CAP an! ma!e separate region$ The @#ant#m of work immensely increase! !#e to the growth of economic activities an! phase of in!#striali ation an! other change in P#nGab an! Sin!$ "t was also consi!ere! necessary to improve the @#ality of a!vances an! to expe!ite the recovery process of the loans an! a!vances$ Besi!e above the economic con!ition of the co#ntry also change! !#e to privati ation policy, establishment of a n#mber of new private banks as well as expansion for operations by the foreign tra!e an! banks in maGor cities$ Aor above changes, high power committees constit#te! by the 8ovt$, which recommen!e! str#ct#ral, an! other reforms, the !etails of which are receive! from Pakistan banking co#ncil are follows: 4ORMATIO# O4 RE%IO#A" HEA3@UARTER' The provincial chiefs of P#nGab, Sin!, +CAP, an! Bal#chistan are cease! to f#nction an! in their place nine regional chief exec#tives starte! f#nctioning in the nine maGor cities$ The new segmentation of UB"Bs branches on the basis of regions can be looke! from the %4 Internship Report
following: &ROVI#CE AI'E RE%IO# A""OCATIO#
&rovin!eBArea S nd 5o .un0a" 5o 5o 5o N1F. Ba*u+h stan A2ad Kash% r
Region #a/e 2arachi >y!eraba! /ahore Aaisalaba! 0#ltan "slamaba! Peshawar N#etta "u#afar$%ad
3o/esti! #etwork of M -tan Region M -tan Region >ea! *ffice 0#ltan Bahawalp#r 5era 8ha i 2han 1ahim Oar 2han Sahiwal Mehari )),Bran!.es % () 6) 64 67 6) 67
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CO((UNITY SER-ICES
UB" is committe! to the welfare of Pakistan$ "t len!s to farmers for the p#rchase of tractors, s#perior @#ality see! an! fertili ers$ UB" f#rther fosters the in!ivi!#al welfare an! well being of the common man by len!ing ho#se b#il!ing finance an! loans to set #p small b#sinesses$ UB" has playe! a lea!ing role in the !issemination of Comp#ter Technology in Pakistan an! is !e!icate! to the promotion of sports$ :gric#lt#ral /oans Small B#siness Scheme UB" Comp#ter Training "nstit#te Staff Colleges of UB" UB" Sports Complex
AGRICULTURAL LOANS
UB"Bs agric#lt#ral loans on easy terms an! con!itions to small9scale lan! owning farmers boost the co#ntryBs economy an! yiel! greener harvests$ UB" enables farmers to b#y goo! @#ality see!s, fertili ers, pestici!es an! agric#lt#ral implements$
'MA"" BU'I#E'' 'CHEME

.n!er the Small B#siness Scheme, UB" is provi!ing loans on easy terms to those who wish to set #p their own small9scale b#siness$ This scheme is aime! at sprea!ing prosperity in the co#ntry by re!#cing #nemployment$ :s more an! more people start their own in!#strial #nits, the co#ntry will move stea!ily towar!s economic self9reliance$
UB" COM&UTER TRAI#I#% I#'TITUTE

UB" is a pioneer in the comp#teri ation of banking in Pakistan, an! now plays a lea!ing role in the !issemination of Comp#ter Technology in Pakistan an! is pro#! to be a part of the 8overnmentBs Comp#ter /iteracy Program aime! at preparing the yo#nger generation to meet the challenges of tomorrow$ %) Internship Report
UB", the lea!ing #ser of Comp#ter Technology in the Banking Sector has set #p most mo!ern facilities at 0# affaraba!, : a! 2ashmir, an! Sheikh#p#ra for imparting training to the e!#cate! yo#th #n!er the 8overnmentBs Comp#ter /iteracy Program$ These centers are e@#ippe! with state of the art har!ware an! a#!io9vis#al ai!s an! are manne! by experience! professionals$
'TA44 CO""E%E' O4 UB"

The UB" has three staff colleges, which are generating banking traine! personnel$ These colleges are at 2arachi, /ahore an! 1awalpin!i, establishe! in %'4(, %',) an! %',, respectively$ These staff colleges are provi!ing facilities of training to the employees of the bank so as to meeting the growing nee! of the banking fiel! an! coping with the changing environment of the co#ntry$
UB" '&ORT' COM&"EX

"n a!!ition to provi!ing professional banking services, the bank contin#e! to play an important role in the promotion of sports in the co#ntry$ Towar!s this en!, the bank has alrea!y constr#cte! a big sports complex in 2arachi, where all types of facilities for sports like cricket, hockey an! floo! light co#rts for tennis an! basketball have been provi!e!$
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Organi?ationa- 'tr !t re
OR%A#I=ATIO#A" 'TRUCTURE O4
U#ITE3 BA#$ "IMITE3
Organi?ation C.art at Bran!. "eve-
:rea 0anager ;:$0<
"nternal :#!it
Branch 0anager or :rea *perational 0anager
Cre!it Committee
C#stomer 5eposit
Cash = Clearing
Bills = 1emittances
0arketing
:!vances
:cco#nts
"$T
Aoreign Exchange
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Management Hierarchy
President Senior Executive Vice President Executive Vice President Senior Vice President Vice President Assistant Vice President Officer Grade 1 Officer Grade Officer Grade ! O"erationa# Staff (SEVP) (EVP) (SVP) (VP) (AVP) (OG 1) (OG ) (OG !)
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UB" 'ETU&
B*:15 *A 5"1ECT*1S
EPEC.T"ME C*00"TTEE
Treas#ry = Capital 0arket
Corporate Banking
"nvestment 8ro#p
Cons#mer Banking
>#man 1eso#rce 0gt$
Ainance 5epartment
0arketing 5epartment
"T 5epartment
:#!it = "nspection
Service = N#ality
:gri /oans
Comercial Banking
BOAR3 O4 3IRECTOR'
Boar! of 5irectors are the owners of the bank an! governs the BankBs :ffairs, which c#rrently consists of Presi!ent Chief Exec#tive *fficer = seven !irectors$ The CE* has an overall responsibility for the strategic !irection, government relations an! to manage the portfolio of b#siness an! its f#nctions$
#AME
His Highness Sheikh Nahayan Mubarak Al Nahayan Sir Muhammad Anwar Pervaiz, OBE, HPK Mr# Mr# Mr# Mr# Mr# Mr# A"i$ %# Bukhari Omar '# Al Askari 'ameer Muhammad Chaudary Ahmad *a+ar ,aved Sa+ib Malik -ehsin Khan .+bal
3E'I%#ATIO#
Chairman e!u"y Chairman Presiden" & CEO ire(")r ire(")r ire(")r ire(")r ire(")r
Chairman His Highness Shaikh Nahayan Mabarak Al Nahayan
Deputy Chairman Sir Mohammed Anwar Per e! O"#
President & CEO Mr$ A%i& R$ "okhari
Director Mr$ Omar 'iad (aa&ar Al Askari
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Director Mr$ Ahmad *a+ar Director Mr$ 'ameer Mohammed Cho)drey
Director Mr$ (a ed Sadi+ Malik
Director Mr$ M$ Tahsin ,han I+bal
Mr$ Aly Shah Barrister-at-law, Company Secretary
EXECUTIVE COMMITTEE
T.e Head of t.e E5e! tive Co//ittee is t.e &resident of UB" CMr2 Atif R2 Bok.ariD2
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Mr$ A%i& R$ "okhari President and C.E.O
Mr$ M$A$ Mannan Group Executi e Consumer!Commercial Ban"
Mr$ Na)man H)ssain Group Operations & #echnolo$y %ead
Mr$ Risha Mohyeddin Group Executi e #reasury & Capital &ar"ets
Mr$ Aameer ,ara-hiwalla Group C'O
Mr$ Aya! H$ Shamsi Group Executi e %uman (esources
Mr$ M)hammad #.a!)ddin Group )udit & *nspection %ead
Mr$ Tari+ Mohar Group Business Support ! Collections %ead
Mr$ Mohammad Asghar Group Commercial Ban" %ead
Mr$ Ali Sameer Group %ead S)&
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/0Treas)ry
The main p#rpose of the treas#ry !epartment$ *f any company is to maintain the li@#i!ity for that company$ Same is the case with Banking "n!#stry as well$ The treas#ry !epartment have to manage the b#ffer stock ;in terms of cash< of the bank an! they have to maintain the li@#i!ity for giving :!vances to their c#stomers$ S#ppose a company P want to get the loan from .B/$ B#t the .B/ has not that m#ch amo#nt$ So it is the responsibility of the treas#ry !epartment to manage the f#n! from money market ;private financial instit#tions like 2hanani = 2alia<$ The narrowest bi!Iask sprea!s an! the fastest @#otes 5ynamic risk9re!#cing he!ging strategies for its c#stomers The best relationships with instit#tional, corporate an! retail clients Oear 7336 was a highly l#crative year for the bank with net profits in excess of P21 ( billion$ Treas ry and Ca1ita- Markets CTCMD contrib#te! to over 4-? of .B/Qs total ret#rns$ This was !#e to 8overnment Bon! Tra!ing, E@#ity Tra!ing, Str#ct#re! Pro!#ctsIAinancial Engineering, Corporate 5ebt Tra!ing, an! 5o#ble9Co#nt of reven#es$ .n!er the new management, the TC0 expe!ite! the la#nch of PakistanQs first !erivative money market pro!#ct9the A1: ;forwar! rate agreement< with N#etta Textile 0ills /t!$ in :#g#st 7336, an! has f#rther close! several similar transactions thereafter$ .B/ TC0 is a market maker in both the !omestic money market as well as the foreign exchange market$ Being one of %% primary !ealers ;P5<, .B/ has one of the largest balance 7) Internship Report
sheets amongst banks in Pakistan, an! hence o#r Aoreign Exchange Expos#re /imit ;AEE/<, as impose! by the State Bank of Pakistan,$ is the highest in the in!#stry$ E@#ities is responsible for managing the bankQs tra!ing an! ba!la portfolio, an! to event#ally !evelop a global e@#ity tra!ing activity for .B/$ Str#ct#re! Pro!#cts is responsible for !eveloping an! packaging plain vanilla !erivatives as well as more exotic c#stomer specific pro!#cts, an! pipeline pro!#cts$ The Strategic Planning an! Balance Sheet 0anagement responsibilities incl#!e: /i@#i!ity 0anagement for the !omestic balance sheet 9 This #nit is the focal point for all branch9relate! li@#i!ity iss#es an! will also be responsible for !ay9to9!ay management of li@#i!ity for .B/$ *verseas Branches Treas#ry an! Capital 0arkets 9 they plan to integrate the treas#ry activities for all overseas branches, to !evelop synergies amongst their vario#s treas#ries$
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10Cor2ora%e "anking
The main obGective of the Corporate Banking is to look after the special c#stomers who gives very m#ch big amo#nt of !eposits or take higher amo#nts of :!vances$ Beca#se a >#b Branch can give the :!vances #p to 1s$ 733 0illion$ :n! the party who nee!s a loan more than 1s$ 733 0 they have to contact to the Corporate Branch of the .B/$ So the cases of :!vances more than 1s$ 733 0 goes into the Corporate Branches$ /et #s take the example of the >#b Branch of .B/, >#ssain :gahi 0#ltan an! Corporate Branch of .B/ cantt$ There are %,- to 733 cases of :!vances in the >#b Branch$ B#t in the Corporate Branch there are har!ly %- to 73 cases of :!vances !#e to so m#ch high amo#nt of :!vances$ :n! these types of c#stomers are calle! corporate c#stomers$ Beca#se they have taken very m#ch big amo#nt of the :!vances it means their b#siness operations an! t#rnover is more fre@#ent$ :n! as a res#lt !rawing an! repayment of the loan or from their own acco#nt is also more fre@#ent$ So these types of c#stomers nee! special care an! services as well$ B t /ind one t.ing t.at t.e do! /entation in !ase of Advan!es and 3e1osits is sa/e in Cor1orate Bran!.es as we-as in H 0 Bran!.es is sa/e2 T.e !ases of Advan!es a-so a11rove Credit Ad/inistration 3e1tt2 CCA3D of t.e Regiona- Head @ arter CRH@D2
MISSION O3 CORPORAT# "AN,ING
*#r mission is to serve all yo#r corporate nee!s an! ens#re yo#r f#ll satisfaction thro#gh pro!#ct innovation, personali e! banking, an! top notch service$ The ;Corporate Banking 8ro#p< CB8 foc#ses on attracting an! servicing large portfolio c#stomers$ *#r forte is provi!ing exemplary c#stomer service #sing the RSingle Cin!owR concept an! pro!#ct s#periority$ The 1elationship 0anagement team manne! by highly @#alifie! in!ivi!#als from the in!#stry has stea!ily expan!e! o#r c#stomer base an! contin#es to enhance o#r cor!ial relations with o#r esteeme! clients$ 5espite the sl#ggish economic growth in recent years, .B/ o#tperforme! all the other local banks in the corporate banking sector primarily !#e to CB8Qs emphasis on establishing an! enhancing relationships with foreignIlocal bl#e chip an! mi!!le market c#stomers thereby capt#ring significant market share$
40In es%men%
This !epartment s#pports the Corporate 5eptt$ Chen a company wants to install a new proGect an! re@#ire the finance from the bank then it is the responsibility of "nvestment 5eptt$ that they analy e the targets of the proGect an! s#ccess or fail#re of the proGect$ "f it is feasible to loan that party then they pass the loan otherwise not$ This is calle! the ProGect Ainance$ *ther responsibilities are offering "P*s, TACs an! following services are performe! by this 5eptt$ +ow .B/ is offering its "P*s ;"nitial P#blic *fferings< in &#ne *n behalf of the c#stomers all the banks also make an investment in !ifferent companies an! in!#stries$ :n! banks receive nominal charge from the c#stomers$
Ser i-es
.B/ ;"nvestment Banking 8ro#p< "B8 offers f#ll spectr#m of services
50HUMAN R#SOURC# 6PARTM#NT

This 5eptt$ !oes all the activities relate! to >1 an! Personnel 0anagement like &ob :nalysis, &ob 5esign, &ob 5escription, &ob 1e!esign, &ob Specification, 1ecr#itment ;is the process of fin!ing an! attracting capable applicants for employment thro#gh :!vertising, Employee 1eferrals, Private Placement :gencies etc$<, Selection by written tests an! interviews, *rientation, Training, Career Planning, Performance :ppraisal ;employee performance an! acco#ntability<, Compensation an! Protection, .nion90anagement 1elations etc$ "t also involves in the following activities: Transfers = Postings Scr#tini ing bills ;>ospital Bill< Staff 5ecease! cases = its Correspon!ence 1etire! employees Cases = its correspon!ence :ll staff legal cases = Co#rt at 0#ltan = /ahore$ 1etrenchment cases Complaints an! its correspon!ence Ara#! = Aorgery cases 0an!atory /eaves an! its observance$ Staff leaves an! other relate! staff matters 8oals of all Staff 0onthly Statement of Staff 67 Internship Report
5isciplinary :ction Cases
The >10 !epartment also gives the facility of /P1 to their employees$
"eaves &rior to Retire/ent C"&RD

These are the leaves at the en! of the Gob perio! ;near to retirement< with pay$ "f some employee has the leaves in cre!it then he or she can avail that leaves at the en! of his or her Gob$ B#t maxim#m limit of /P1 is one year$ :n! after these leaves he or she will be a#tomatically retire!$ B#t if some employee the leaves in cre!it less than one year, let s#ppose of nine months, then he or she can avail only that cre!ite! leaves ;nine month< only b#t with pay in the facility of /P1$
70IT 6#PARTM#NT
"nformation Technology 5eptt$ is relate! with all comp#ter activities like to manage the Central 5ata Base ;C5B< which is place! in >ea! *ffice of .B/ 2arachi in all the !aily transactions in all the branches of the co#ntry are #p9!ate! on !aily basis$ This 5eptt$ also makes the web site new news to web site$ The !aily transmission process of !ata is as following: : spoke branch #p9!ate the !aily transactions thro#gh comp#ter networking to the its Central Branch$ S#ppose all the with!rawing, !eposits, remittances, collection an! clearing !ata of the !ay is sent to the Central Branch$ :n! when the Central Branch receives the !ata from all the spokes branches #n!er it then that Central Branch #p9!ate the !ata of all the spokes branches an! its own to the Central 5ata Base ;C5B< at >ea! *ffice$ Corporate Branches an! 1egional >ea! N#arters ;1>Ns< #p9!ate the !aily !ata !irectly to the >ea! *ffice$
80 AU6IT AN6 INSP#CTION

The responsibility of this !epartment is to a#!it an! inspect the operations of the branches$ Chether the operations are compliance by the branches in a right way or not$ The CC5 ;Control an! Compliance 5epartment< comes #n!er this !epartment$ " will !isc#ss abo#t the CC5 in the branch level f#nctions$
90 CONSUM#R "AN,ING
Oo# as an in!ivi!#al can gain an! benefit the most thro#gh .B/ Cons#mer Banking$ "n .B/ yo# get frien!ly, efficient an! attentive personali e! banking services 9 a #ni@#e banking relationship experience! by each .B/ client$ Oo# can #tili e the following services:

+B, Credit Card +B, Businessline +B, Cashline +B, )ddress +B, Dri e P,S #erm Deposits P,S Sa in$s )ccounts +ni-Sa er (emittances
+B, C(ED*# C)(D

"t is the PakistanBs %st Chip Cre!it Car!, that g#arantees yo# both enGoyment an! high val#e$ "t ass#res yo# global acceptability in more than 77 million establishments worl!wi!e in %63 co#ntries an! in more than %7, 333 o#tlets within Pakistan$
The U"L Credi% Card :$$Ma!ay Mein Raho$
This #ni@#e high tech C>"P g#arantees yo#r sec#rity while con!#cting transactions within Pakistan an! aro#n! the worl!$ C>"P base! cre!it car!s have proven to be the most sec#re way of con!#cting cre!it car! transactions globally$ : Choice of 1ewar!s :long with exciting Chip 1ewar!s yo# have a choice between Aree 1oa!0iles an! Aree TalkTime$
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Spen! 1s -333 anywhere on yo#r .B/ Cre!it Car! an! get g#arantee! - litres petrol free from any PS* o#tlet nationwi!e$ "f yo# spen! more, yo# get more$ So keep !riving, keep smiling$
Spen! 1s -333 anywhere on yo#r .B/ Cre!it Car! an! get g#arantee! 63 min#tes free$ ChatBs more, yo# get a free 0obilink Postpai! Connection with yo#r .B/ Cre!it Car!$ "f yo# spen! more, yo# get more min#tes$ So talk freely, stay connecte!$
Low "alan-e Trans&er Ra%e ; Sa e big %ime

+ow yo# can really save big time with yo#r .B/ Cre!it Car! Balance Transfer AacilityS$ Oo#r .B/ Cre!it Car! offers a low rate for BTA of o#tstan!ing balances from other car!s at only %$-? per month$
Cash Ad an-e
Oo# can now with!raw cash thro#gh yo#r .B/ Cre!it Car!Bs instant cash a!vance facility from any !esignate! .B/ FCar!s PaymentsB Branch nationwi!e, an! at more than ,33,333 :T0s an! financial instit#tions worl!wi!e !isplaying the M"S:I P/.S logo$ 9M"S: 8lobal C#stomer :ssistance Service an! m#ch moreT$ E-igi0i-ity CriteriaE Oo# are eligible to apply for the .B/ Cre!it Car! if yo# are 9:t least 7% years of age 9: resi!ent of Pakistan 9Employe! or managing yo#r own b#siness 3o! /ents ReF iredE GCopy of the Comp#teri e! +ational "!entity Car! 9:ny one of the following income !oc#ments 64 Internship Report
0 0
Salary slipI Salary Certificate ;in case of the Employe! :pplicants< Personal Bank Statement an! I or Company Bank Statement ;along with b#siness
proof<, in case of Self Employe! :pplicants
+B, B+S*-ESS,*-E
*ntroduction<
.B/ B#sinesslineT a complete sol#tion to all yo#r B#siness Ainancing nee!s$ .B/ B#sinessline is a r#nning Ainance facility that not only provi!es f#n!s for growth b#t also enables yo# to capitali e on profitable opport#nities$ Cith .B/ B#sinessline, now yo# will s#rely say: R:b >#i T 2amiyaabi 0eri 0an illQ$
.hat is Businessline/
D"t is a FCre!it /ineI *5 AacilityB against 1esi!ential Property$ "t is an evergreen cre!it line that the c#stomer can #se for hisIher b#siness expansionE
'eatures0
U%ili!e )2 %o Rs$/= million< +ow, .B/ B#sinessline is here to solve all yo#r cash flow problems$ Oo# can #tili e #p to 1s$%3 million with the help of which yo# can now foc#s on yo#r b#siness expansion an! growth$ Mark )2 on )%ili!ed amo)n% only< Cith .B/ B#sinessline, now yo# no more nee! to pay for the entire cre!it line that yo# own$ B#sinessline gives yo# the facility to pay mark #p only on the amo#nt that yo# #tili e$ 3as%er Pro-essing< 6, Internship Report
:fter completion of yo#r !oc#mentation re@#irements, .B/ B#sinessline promises yo# a very smooth an! fast processing, hence saving yo# time an! fr#stration$
#LIGI"ILIT> CRIT#RION<
"f yo# fall in the following criteria, then .B/ B#sinessline is G#st the right choice for yo# : U 0inim#m monthly income: 1s$ 7-,333 an! above U :ge: 7-L 4U 1esi!ent: Pakistani$ U Self Employe! Professional I Self Employe! B#sinessman$
+B, C)S%,*-E
>ave yo# ever wishe! for a loan that was flexible eno#gh to be #se! anywhere, anytime, an! as many times as yo# wante!V .B/ intro!#ces Cas.-ine L the most flexible loan, provi!ing yo# #p to 1s$ -33,333I9 &he perfect solution'
4"EXIB"E Tired of 1aying 0i--s yo rse-fH .B/ Cashline can pay them for yo#S Aanted to 0 y a11-ian!es for yo r .o/eH .B/ Cashline can b#y them for yo#S May0e even renovate itH .B/ Cashline can provi!e for yo#r home !WcorS Tired of -ooking at t.e sa/e o-d f rnit reH .B/ Cashline can get yo# something yo#Qve always !reamt ofS Envio s for one of t.ose s-eek !ars on t.e roadH .B/ Cashline can transform yo#r wheels into a !ream carS
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#eed a va!ationH .B/ Cashline can fly yo# off to a !ream !estination tooS '.ort ter/ 0 siness needsH .B/ Cashline can sen! payments to thir! parties in other citiesS E/ergen!iesH Cith .B/ Cashline yo# can sit back an! relax$ CO#VE#IE#T .B/ Cashline gives yo# the convenience of access to cash thro#gh m#ltiple options 7( ho#rs a !ay, tr#ly setting yo# freeS Cith every .B/ Cashline acco#nt yo# will get: C.eF e Book .se yo#r .B/ Cashline che@#es at any online branch thro#gho#t the .B/ networkS Oo# can enGoy the convenience of walking into any .B/ online branch across Pakistan an! #se yo#r Cashline acco#nt with ease$ ATMB3e0it Card .B/ Cashline comes with an :T0I5ebit car! so that yo# have instant access to cash L 7( ho#rs a !ay, , !ays a week$ Cherever yo# might be, yo# are never away
from cash$ Simply go to any :T0 in Pakistan an! experience the convenience of .B/ CashlineS How !an yo get Cas.-ineH "f yo# are:
: salarie! person of 7% to 43 years, an! yo#r monthly net salary is 1s$ %3,333 : self employe! b#siness personIprofessional between the ages of 7% to 4- years, an!
*r
yo#r monthly net take home income is 1s$ 7-,333
+B, )DD(ESS
.B/ :!!ress #n!erstan!s yo#r home financing nee!s an! offers yo# a variety of fixe!, floating = a!G#stable rate options 9 beca#se at .B/, &#u come $ rst$ 4i5ed Rate for ): years Aix yo#r repayments for 73 years to!ay$ The fixe! mark#p rate gives yo# peace of min! an! allows yo# to plan yo#r cash flows better$ MarkG 1 Mont.-yI &rin!i1a- Ann a--y C): yearsD Aor the first time in Pakistan, .B/ a!!ress provi!es an alternative to high monthly rentals by offering a flexible repayment option to s#it yo#r cash flows: 9Pay only mark#p for %% months every year$ 9 Pay -? of principal along with the mark#p in %7th month every year$ E5a/1-e, on the loan of 1s$ %,333,333 yo#r ann#al principal repayment will be 1s$ -3,333 while yo# will only pay the mark#p as monthly installment ;as in!icate! in the grpah below<$
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&ay As Yo 'e-e!t C&AY'D "n a!!ition to normal financing, .B/ :!!ress offers yo# the facility to !esign yo#r own repayment plan to s#it yo#r present an! f#t#re expecte! cash flows$ &AY'GU1 C1: yrsI 1, YrsD P:OS9.p allows yo# to start with low installments that increase every year$ Aor example, on a %- year loan of 1s$ %,333,333 yo#r monthly installment will begin from 1s$ ',7,3J in year one an! will rise to 1s$ %-,4,' in year fifteen$
E-igi0i-ity Criteria
90inim#m monthly income: 1s$%-,333 9 :ge: 76 to 4- years 9 1esi!ent Pakistani 9 Self9employe! b#sinessmanIprofessional or salarie! in!ivi!#al 9 0inim#m loan si e: 1s$ -33,333
.B/ 51"ME
.B/ 5rive is a #ni@#e car financing pro!#ct which offers yo# feat#res, options an! flexibility #nmatche! by any other bank, some for the very first time in Pakistan$ Beca#se at .B/, yo# come first$ (% Internship Report
#o 3o! /ents ReF ired

.B/ 5rive gives yo# the opport#nity to get the car of yo#r choice finance! with minimal !oc#mentation$ Oo# !o not have to provi!e any income relate! !oc#ments 9 all that is re@#ire! is a copy of yo#r +"C an! 7 photographsS
"ow 3own 1ay/ent > st 1:J

"n a!!ition to low installments, .B/ 5rive allows yo# to !rive away in yo#r own car by making a !own payment of G#st %3? 9 one of the lowest !own payment options in the marketS
UB" offers a wi!e range of attractive term !eposit schemes to s#it yo#r re@#irements$ 5eposit perio! along with proGecte! profit rates of these schemes are given below : Ter/ 3e1osit &eriod , to 7' 5ays notice 63 5ays an! above 1 Mont. ) Mont.s T.ree Mont.s 'i5 Mont.s One Years Two Years T.ree Years 4o r Years 4ive Years Corporate c#stomers, besi!es normal c#rrent acco#nts, are also offere! special c#rrent !eposit acco#nts to cater to their specific re@#irements at very attractive profit an! terms$
&-ease Conta!t yo r nearest UB" Bran!.2
&roKe!ted Rate Of 1rofit
Oo# can open a P/S Savings :cco#nt with an initial !eposit of 1s$ 7,333 Oo#r share of profit is cre!ite! half9yearly an! is calc#late! on monthly balance Oo# can with!raw yo#r savings thro#gh che@#e
UB" .niSaver :cco#nt is an innovative way of serving yo#r banking nee!s$ Be it tra!e, b#siness or personal finance, the .B/ .niSaver allows yo# maxim#m flexibility, yet gives yo# optim#m ret#rns$ '1e!ia- 4eat res areL

5aily Profits on yo#r !aily balance >igher ret#rns on higher balances
:ttractive rate of ret#rn Backe! by the bank awar!e! ::: Cre!it 1ating &roKe!ted Rate Of 1rofit C12aD
&-ease !onta!t yo r nearest UB" Bran!.2
3e1osit Category *ver 1s$ %33,333 .p To 1s$ 6 0illion 1s$ 6 0illion #pto 1s$ - 0illion *ver 1s$ - 0illion #pto 1s$ %3 0illion
*ver 1s$ %3 0illion #pto 1s$ -3 0illion *ver 1s$ -3 0illion #pto 1s$ 7-3 0illion *ver 1s$ 7-3 0illion #pto 1s$ -33 0illion *ver 1s$ -33 0illion
*#r remittance pro!#cts are !esigne! to give yo# maxim#m flexibility$ C#rrently, yo# can sen! money to almost A#YAHERE in Pakistan by #sing o#r pop#lar Te 1aftaar remittance service$ Aor .S resi!ents, .B/ offers a!!e! flexibility thro#gh .B/ Click + 1emit99 an innovative online remittance service $ Sen!ing money from .S to Pakistan is G#st a click away$
UB" is a-so a /e/0er of 'AI4T ;Society for Corl!wi!e "nterbank Ainancial Telecomm#nications<$ This enables the Bank to provi!e sec#re transmission of foreign exchange payments for tra!e, home remittances an! other transfers in a f#lly a#tomate! manner$ *#r SC"AT Bank "!entifier Co!e is U#I"&$$A +ewyork U#I"U'66 .$2;.+B< #B&A%B=" .$:$E U#I"AEA3 Bahrain U#I"BHBM Natar U#I"@A@A
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62 3I'COU#TI#% O4 BI"" Commercial banks also !isco#nt the bills an! facilitate the b#siness; for example one b#sinessman p#rchases anything from another person an! promises to pay after one month$ The seller will write a bill to the b#yer an! there will be an or!er that after one month the b#yer will pay the amo#nt to the seller$ B#yer will sign on the bill$ "n other wor!s b#yer will accept the responsibility of that amo#nt$ "f seller is in nee! of money, he will take it to the bank an! will receive the money by !isco#nting the bills$ The commercial bank also may re!isco#nt it from the central bank$
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Co//er!ia- Banking
90COMM#RCIAL 6#PARTM#NT
As far as the #a$ is concerned% &an'ing (om"anies Ordinance 1)* defines the term +an'ing as fo##o$ing, Accepting for the purpose of lending or investment of deposits of money from the public repayable on demand or otherwise and withdrawals by cheque, draft, order or otherwise. .he commercia# +an'ing has +een deve#o"ed into an im"ortant sector economy/ 0t is a service-oriented organi1ation% $hich "erforms numerous functions/ .he functions% $hich a commercia# +an' "erforms% can +e divided into fo##o$ing categories/ 1/ / !/ &asic 2unctions Agency Services 2unctions Genera# 3ti#ity 2unctions
.hese are c#assified as fo##o$ing/ Basic Functions #hese include0 %< 7< 1/ a/ +/ c/ / a/ Internship Report )cceptin$ o1 deposits &a"in$ ad ances and loans Acce"ting of 4e"osits (urrent54emand 4e"osit Saving 4e"osits 2ixed 4e"osit Ma'ing Advances and 6oans 7unning 2inance (4
+/ c/
.erm 2inance Pro8ect 2inance .hese inc#ude,
Agency Services (o##ection of (he9ues (o##ection of 4ividends Purchase and Sa#es of Securities Execution of Standing 0nstructions (o##ection of &i##s Acting as trustees or Executors .ransfer of 2unds .hese inc#ude, Su""#ying .rade 0nformation 0ssue of .rave#ers (he9ues 0ssue of (redit (ards 2oreign Exchange &usiness
eneral !tility Services
RU&EE TRAVE""ER CHE@UE

UB" offers the facility of the 1#pees Traveler Che@#e$ UB" 1#pee Travelers Che@#es are the i!eal an! safest way of carrying cash when traveling anywhere in Pakistan$ .se! for con!#cting !ay9 to9!ay b#siness$ +o commission is charge! from the p#rchaser$ +o excise !#ty on p#rchase$ Easy to obtain an! encash from all !esignate! 6-3 branches of UB"2 :cceptable all over Pakistan$ 8oo! #ntil #se! an! have #nlimite! life$ Easily transferable like an or!er che@#e$ (, Internship Report
3E&O'IT 3E&ARTME#T
5eposits act as a backbone of bank$ "t is the lifebloo! of every bank$ These !eposits are so#rce of generating incomes for the bank an! for the general p#blic to meet the financial nee!s$ The s#pply of money in circ#lation is also affecte! by the amo#nt of loans an! a!vances iss#e! by the bank$ The primary economic f#nction of the commercial bank is to receive the s#rpl#s saving money from the general p#blic, in!ivi!#als, firm, instit#tions, p#blic ho#ses an! companies an! to pay the che@#es !rawn #pon the bank$ The bank accepts the !eposits at a low rate of interest an! len!s it at higher rate of interest, the !ifference between the len!ing an! accepting rate is the So#rce of income for the bank$ 2eeping in view the above factors UB" offers the following types of !eposits: %< 7< 6< C#rrent 5eposit Saving 5eposit Aixe! 5eposit
The classification of the !eposits in to c#rrent, saving an! fixe! acco#nts is mainly on the basis of !#ration an! p#rpose for which the acco#nt is maintaine! at a bank CURRE#T 3E&O'IT C#rrent !eposit is r#nning !eposit beca#se, c#stomer can with!raw !eposite! amo#nt at any time, whenever he feels nee!$ The c#stomer can with!raw witho#t any prior notice to the bank$ The bank has to pay the che@#e provi!e! within the limits of the acco#nt balance$ T.e /ain t.ing is t.at 0ank does not 1ay any kind of interest on ! rrent a!!o nt2 :ct#ally this !eposit is for the b#siness p#rpose$ The bank cannot invest the !eposite! amo#nt #n!er c#rrent acco#nt hea!ing, beca#se of the fear of with!rawal$ Bank has to keep with it a higher reserve ratio to meet the nee!s of the c#rrent acco#nt hol!ers$ 'AVI#% 3E&O'IT Saving :cco#nt is an important so#rce of f#n!s for the bank$ The p#rpose of this acco#nt is to attract the small saving of the general p#blic$ +ormally workers, schoolboys an! employees of the organi ations #se the saving acco#nt facility$ UB" also provi!es this facility to the general
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p#blic against a certain rate of interest$ The new name of this acco#nt is now a !ay is P/S9 Saving :cco#nt$ "f a c#stomer wants to with!raw a large s#m of money ;above %-333<, he will have to give a notice of , to %( !ays in writing to the bank$ Saving acco#nt !eposits provi!e a chance to the bank to invest safely, beca#se c#stomer can with!raw small amo#nt of balance$ 4IXE3 OR TERM 3E&O'IT' Aixe! or Time !eposits acco#nts are the maGor so#rce of the capital for investment for the bank an! cannot be with!rawn as in case of the c#rrent acco#nt$ The amo#nt !eposite! can be receive! back after a certain specifie! perio! of time$ The rate of interest pai! on fixe! 5eposits is normally higher than saving 5eposits$ The rate of interest also varies !#e to time perio!$ 0ore the mat#rity perio! of the acco#nt more the interest is pai! by the bank$ :fter the expiry of the perio! the c#stomer presents the receipt to bank an! receive! the amo#nt in cash or bank a!!e! in the c#stomer acco#nts as agree! between bank an! c#stomer$ @( if the customer withdraw the amount %efore its maturity period in fi(ed deposit account then what would happen) A#'( S#ppose yo# are the c#stomer of the bank an! have fixe! !eposit in that bank$ Aor example yo# have !eposite! 1s$ %33,333I9 for the one year at the interest rate of 4$-3? per month$ :cci!entally after six month yo# nee! yo#r amo#nt back an! want to with!raw it$ Then it !oesnBt mean that yo# will not get any profit on it at all or yo# sho#l! be charge! a fine$ *nly an! only yo#r profit ratio wo#l! be re!#ce! beca#se accor!ing to the bank policy more the perio! of fixe! !eposit more the interest wo#l! be pai! to the c#stomer by the bank$ S#ppose that six months fixe! !eposit rate of interest is 4$33? then it means now yo# will get the 4$33? rate of interest instea! of 4$-3?$ The perio! of fixe! !eposit acco#nt ranges from three months to ten years$ "t is #s#ally operate! by wi!ows, retire! pensioners, salarie! persons etc$ to get the reg#lar ;monthly< rate of interest$ "n Pakistan this acco#nt is s#bGect to Kakat !e!#ction$
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O&E#I#% O4 THE #EA ACCOU#T : c#stomer can open the following three types of acco#nts: %< 7< 6< P/S9Saving :cco#nt C#rrent :cco#nt Aixe! :cco#nt
1D O1ening of saving A!!o nt Saving acco#nt is also !ivi!e! into two types f#rther, "$ ""$ "n!ivi!#al saving acco#nt &oint Saving :cco#nt
I2 O1ening of Individ a- 'aving A!!o nt :n in!ivi!#al person can open this type of acco#nt$ UB" has !efine! the following proce!#res for the opening of in!ivi!#al saving acco#nt: 'ignat re s1e!i/en !ardI the bank to get a#thori e! signat#re of the c#stomer as specimen for avoi!ing any f#t#re !iscrepancy gives C#stomer$ A!!o nt o1ening for/, when a c#stomer comes to open the new acco#nt in the branch he is given a printe! form, to be fille! by him$ :cco#nt opening form consists of f#ll name, a!!ress, an! !ate of birth, occ#pation, telephone n#mber, an! +$"$5$ car! n#mber$ % aranteed 0y t.e e5isting a!!o nt .o-derI when the new acco#nt hol!er f#lfills all the re@#irements then he is aske! to give some existing acco#nt hol!er g#arantee, so that in f#t#re the new acco#nt hol!er may not fra#! with the bank$ II2 O1ening of >oint 'aving A!!o nt( *pening proce!#re for the Goint saving is same as in case of in!ivi!#al saving acco#nt$ &#st the !ifference is in the acco#nt opening form$ Signat#re specimen car! is also #se! for the same p#rpose as for the in!ivi!#al saving acco#nt, to avoi! f#t#re !iscrepancy$ :cco#nt opening form, Goint saving opening from has same information more than one time beca#se more than one person fills this form to open the acco#nt$ Briefly is that no oneIsingle person can open this acco#nt, as a res#lt it is calle! Goint saving acco#nt$ R -es and Conditions for 'aving A!!o nt( -3 Internship Report
The acco#nt opening person knows the r#les an! con!itions$ This acco#nt can be opene! only with initially 1s$ %33 not less than this amo#nt$ %< P/S9 Saving acco#nt may be opene! byIin the name of in!ivi!#al or Gointly, or by
7< 6< bank$ (< -< 4< ,< )< '<
charitable instit#tions or provi!ent f#n!s or other f#n!s, associations, societies an! Aor opening of this acco#nt application has to s#bmit on the prescribe! form by the C#stomers can !eposit money in his acco#nt by #sing pay9in9slip$ C#stomer m#st check the signat#re of two officer of the bank on the !eposit slip$ Cith!rawal, !epositor canBt with!raw more than his balance or one @#arter$ :t least , Bank canBt responsible for a che@#e, which has been pai! prior to receipt of written The bank will take care to see that cre!it an! !ebit entries are correctly a!G#ste!, b#t if "f the acco#nt is close! the #n#se! che@#es m#st be ret#rne! to the bank for the
firms or cl#bs$
!ays notice m#st be given to bank for with!rawal p#rposes$ instr#ctions from the !rawer co#nterman!ing payment$ any mistake is by the !epositorIwith!rawer than bank will not responsible for the loss$ cancellation an! the balance amo#nt, if any m#st be with!rawn$ %3< The profit or loss on the balance !#e at the time of !eath will be pai! when bank will !eclare its profitIloss for the half year$ %%< 5eath of acco#nt hol!er, in absence of any instr#ctions the cre!it balance o#tstan!ing in any Goint acco#nt in the name of two or more persons will be payable to the s#rvivors$ %7< The bank to the acco#nt hol!ers will s#pply statement of acco#nt every @#arter$ %6< :men!ments of r#les, the bank have a right to amen!, alter or a!! to any of these r#les with or witho#t notice to the acco#nt hol!ers$
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)D2 O1ening Of C rrent a!!o nt : person, b#sinessman an! organi ation can open the following types of c#rrent acco#nt$ "$ ""$ """$ "M$ &oint C#rrent :cco#nt "n!ivi!#al C#rrent :cco#nts Sole proprietorship C#rrent :cco#nt Partnership C#rrent :cco#nt >oint C rrent A!!o nt
I2
0ore than one person can open Goint c#rrent acco#nt$ 0inim#m balance of this acco#nt is 1s$l3, 333 approx$ "f a Goint hol!er !ies then bank hol!s the acco#nt an! refers case to the co#rt$ A!!o nt o1ening for/, this application form is !ivi!e! into two si!es an! both si!es have same information which are !etails of signatory *$+ B,+ name+ occupation+ nationality+ place and date of %irth+ national identity card num%er+ %usiness address+ employer no. -tc.
II2
Individ a- C rrent A!!o nt
*nly one person can open in!ivi!#al c#rrent acco#nt$ 0inim#m balance in this case is 7-33, if the balance in the acco#nt is less than this limit than bank sen!s a statement to acco#nt hol!er to maintain the minim#m balance$ Aor with!rawal, checkbook is iss#e! an! #se! no other instr#ment is #se! or accepte! by the bank$ Proce!#re for opening this acco#nt is also same as in P/S9Saving acco#nt G#st the !ifference is in opening form information, re@#ire! by the bank$
III2
'o-e &ro1rietors.i1 C rrent A!!o nt
"n sole proprietorship organi ation a person invests his capital an! !evotes f#ll time to his b#siness$ Sole proprietor opens this acco#nt$ 0inim#m balance that re@#ire! in this acco#nt is 1s$ %333$ :ll the profit pai! on balance will go to the sole proprietor only$ The acco#nt opening form of this acco#nt is !ifferent than others beca#se this form is fille! in the name of the organi ation$ The name of proprietor$ Place an! 5ate of birth, +ationality, Passport n#mber an! +ational "!entity Car! n#mber, have to mention on this form$
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3o! /ents ReF ired Aollowing !oc#ments certifie! copies are re@#ire! with the application: a< b< c< 0ost recent set of :cco#nt C#rrent 0#nicipal /icensee Commercial 1egistration Certificate$ &artners.i1 C rrent A!!o nt
IV2
Partnership c#rrent acco#nt can be opene! with the name of Partnership Company$ Before opening of partnership acco#nt sharehol!ers has to !eci!e that how many partners have right to sign on che@#e$ The proce!#re is same for opening s#ch acco#nt; the !ifference is in the acco#nt opening form$ :cco#nt opening form shows the name in f#ll, nat#re of b#siness, principal place of b#siness, a!!ress, location, an! telephone n#mber, telex n#mber$ :fter that this form is !ivi!e! into fo#r si!es with the name of :$B$C$5$ an! showing the same information mentione! earlier$ R -es and Conditions %< 7< 6< %333$ (< -< 4< ,< )< :fter six9month bank ref#se the payment of the che@#es ;post !ate! che@#es<$ Bank will not make payment if che@#e is ma!e #na#thori e!$ :cco#nt hol!er who is #nable to sign, he will affix his left9han! th#mb$ The che@#e amo#nt sho#l! not excee! to balance of acco#nt$ :ny person opening a c#rrent acco#nt is !eeme! to have rea!, #n!erstoo! an! Bank can close I!own any acco#nt at any time #pon () ho#rs write notice, after the The acco#nt n#mber sho#l! be mentione! on all correspon!ence with the bank The acco#nt hol!er m#st maintain the minim#m balance re@#irement that is 1s: opening of the acco#nt$ when !eposits or with!rawals are ma!e$
bo#n! by the bank r#les an! con!itions of c#rrent acco#nt$
3I44ERE#CE BETAEE# MA#A%ER M MA#A%ER O&ERATIO#' The manager of the bank is responsible for the S:/ES in terms of both 5eposits as well as :!vances$ *n the other han! *perational 0anager ;manager operations< is responsible for the table work being !one within that branch$ :n! same is the !ifference between :rea 0anager ;:0< = :rea 0anager *perations on the area level$ :0 is #n!er the 1egional >ea! an! is responsible to achieve the targets of :!vances as well as 5eposits of the Central Branch with the Spokes Branches #n!er it$ :rea *perational 0anager is responsible that the table work of the Central Branch an! the Spokes Branches sho#l! be !one in a right way$
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ACCOUNTS DEPARTMENT
ACCOU#T' 3E&ARTME#T
"t is sai! that acco#nts !epartment is the backbone of the bank$ "t plays a vital role in performing !ifferent banking f#nctions$ The acco#nts !epartment at UB" >#ssain :gahi branch is performing its f#nction man#ally$ 5ifferent books of acco#nts relating with other !epartments are maintaine! here$ Cith the help of these books of acco#nts, acco#ntant prepares monthly, @#arterly, semi9ann#ally an! yearly financial statements$ The working in acco#nts !epartment mainly !epen!s #pon vo#cher system$ Aor each an! every transaction9taking place in the bank vo#chers are prepare! an! thro#gh these vo#cher contra entries are passe! #n!er !ifferent hea!s$ 4U#CTIO#' O4 ACCOU#T' 3E&ARTME#T The acco#nts !epartment performs the following f#nctions: ;a< ;b< ;c< ;!< To prepare an! maintain the vo#chers$ To maintain an! #p!ate the le!gers for term !eposits$ To #p!ate general le!ger$ To prepare !ifferent perio!s statements$
Vo !.ers Each an! every transaction in the bank is ma!e thro#gh vo#chers; the final place is acco#nts !epartment for recor!ing these vo#chers$ *fficer in the acco#nts !epartments arranges these vo#chers accor!ing to hea!s of acco#nts$ These vo#chers are of two types: %$ 5ebit Mo#chers 7$ Cre!it Mo#chers These two vo#chers are again classifie! into three following types of vo#chers: "$ ""$ """$ Cash Mo#cher Clearing Mo#cher Transfer Mo#cher
:ll the !aily transaction in cash, transfer an! clearing is !one thro#gh these vo#chers$ : -Internship Report
sheet is prepare! on which all the vo#chers, passe! !#ring any one working !ay are consoli!ate! an! s#mmari e!$ This sheet is calle! s#pplementary sheet$ "t provi!es help in preparing Cash Book$ There are two types of s#pplementary sheets: 3e0it ' 11-e/entary '.eet( "n which all !ebit Cash Mo#cher, Clearing Mo#cher, Transfer Mo#cher are incl#!e!$ Credit ' 11-e/entary '.eet( "n which all cre!it Cash Mo#cher, Clearing Mo#cher, Transfer Mo#cher are incl#!e!$ Cas. Book "t is maintaine! to keep the recor! of !aily receipts an! !aily pai! vo#chers$ Cashbook is consiste! on the opening balance an! the closing balance of the !ay$ Aor correct balance of the cash book there is a nee! to arrange all the vo#chers$ "edger 4or Ter/ 3e1osits *ne of the f#nctions of acco#nts !epartment is to maintain an! #p!ate the term !eposit le!gers an! books man#ally$ Term !eposit receipt or T51 le!ger is #p!ate! after every month for estimation of profit on c#stomer acco#nts$ :cco#ntant has to prepare !ifferent le!ger for all schemes of term !eposit$ Cith the help of T51 the acco#ntant prepares provisional le!gerIS#mmary le!ger an! also statement of provisional expenses$ The profit after every six9month will be the expense of the branch$ U1dating %enera- "edger Chen vo#chers are recor!e! in cashbook then the balance of each hea! of acco#nt is poste! to its le!ger acco#nt$ There are two main hea!s of the general le!gers, "ncome acco#nt = Expen!it#re acco#nt$ :ll the acco#nts fall #n!er one of these two main hea!s$ Separate le!ger register is maintaine! for every hea! of acco#nt$ "n UB" all the !aily transactions in !eposits, cash, clearing, transfer remittance, foreign exchange; a!vances are performe! thro#gh these !aily le!gers$ :cco#nts !epartment 0aintains an! prepares the following le!gers an! books of acco#nts:
"$ ""$ """$ M$
5aily 8eneral /e!ger Expenses 5aily 8eneral /e!ger "ncomesI1eceipts 0onthly 8eneral /e!ger :ssets 5aily 8eneral /e!ger Konal Expenses
"M$ 0onthly 8eneral /e!ger /iability M"$ 5aily 8eneral /e!ger "nspection expenses$ M""$ 5aily 8eneral /e!ger 1egional Expenses M"""$ 5aily 8eneral /e!ger :#!it Expenses The format of the entire above le!ger is approximately same$ 8eneral le!ger tells abo#t :IC +o$, !escription, previo#s Balance, 5r$ amo#nt, Cr$ amo#nt an! r#nning balance$ &re1aration of 3ifferent 'tate/ents :cco#nts !epartment prepares these statements, a< b< c< !< e< Statement of :ffairs Statement of provisional "ncome Statement of provisional Expenses Statement of >ea! office :IC Balance confirmation BookI1eport
f<Transfer Book Statement of affairs is prepare! yearly, consisting on the !etails abo#t assets an! liabilities of the branch$ This statement provi!es assistance in b#!geting abo#t branch$ Statement of provisional "ncome an! expense is prepare! monthly$ Statement of acco#nt an! balance confirmation is sent to acco#nts hol!ers$ "OC$ER' UB" is also provi!ing lockers facilities to its c#stomers$ The acco#nt !epartment also maintains the recor! abo#t lockers$ The basic p#rpose of locker is to provi!e safe c#sto!y to clientBs val#able ornaments, Gewelry or !oc#ments$ :lmost in all branches, /ockers are available in !ifferent si es at !ifferent rates$ Aor availing this opport#nity, c#stomer has to open his acco#nt in the same branchIbank$ "o!ker O1erating &ro!ed re( Bank provi!es an application form to the applicant who nee!s to operate a locker in the -, Internship Report
branch$ This application form contains all r#les an! reg#lation regar!ing to obtain a locker$ Specimen signat#re car! is also fille! in signe! by the applicant$ Bank assigns a passwor! to their c#stomer for secrecy$ Each locker has !#plicate keys$ *ne ;master< key is kept by the bank, an! the other by the c#stomer$ "n case of opening any locker, first of all master key is applie! an! then the c#stomer key$ "f the locker has been obtaine! Gointly then at the time of the opening, the person signe! the application form, sho#l! be presente! there otherwise, the bank will not allow to operate the locker$ Bank officer has to maintain the following register for recor! keeping p#rposes of locker$ "$ ""$ """$ /ocker 1egister *peration 1egister 2ey 5eposit 1egister
Safe !eposit locker fee is recovere! in a!vance or at the start of the year, half9year or @#arterly$ Ty1es of "o!ker There are basically three types of locker at UB" that are as #n!er: TOPES *A /*C2E1S 1:TES *A /*C2E1S Per :nn#m '/a-Medi / /arge Rs2 1):: 1s$ %)33 1s$ 6333
The key !eposit fee is 1s$ 433$ Per locker an! it is ref#n!able at the time of closing an acco#nt the breaking charges are 1s$ -33 per locker an! it is also ref#n!able at the time of closing of acco#nt, provi!e! there is no breaking$
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BI))S CO))ECTION
BI))S DE.ART(ENT This !epartment basically !eals in bills, which come in bank for collection$ The bills are che@#es, call !eposit, !rafts an! pay or!er$ These bills are from o#tstation branches of UB" or of other banks$ This !epartment provi!es services to c#stomers at low charges to get their amo#nts from the nearest branch$ HEA3' O4 BI""' There are two main hea!s of the bills i$e$ *#twar! Bills Aor Collection ;*BC< "nwar! Bill Aor Collection ;"BC<
O tward Bi--s for Co--e!tion Bills !epartment receives che@#es or other kin!s of bills from its clients$ The con!ition #n!er *#twar! Bills for Collection is that the c#stomer m#st have his acco#nt in the branch$ This branch forwar!s the che@#e with sche!#le or covering letter to that branch on which bill is !rawn$ The checking officer of bills !epartment will cross the che@#e with special bank stamp before forwar!ing the che@#e to the other branch$ O tward Bi--s for Co--e!tion Register *#twar! bills for collection register is maintaine! in or!er to !eep the recor!s of all bills for o#twar! collections$ This register is #p!ate! two times, first at time of receiving the *BCs an! secon!ly at the time when confirmation a!vice is receive! from the other branch, either the che@#e will be pai! or not by the other bank branch$ :fter confirmation of the amo#nt, confirmation a!vice is transferre! to the sen!er branch$ :fter confirmation of the amo#nt an! bills, the acco#nt of the c#stomer is cre!ite! against reasonable charges, which is income for the bank$ Inwards Bi-- for Co--e!tion These bills come to branch for payments so branch has to verify these che@#es, pay or!ers, !rafts an! call !eposits etc$ The party acco#nt m#st be opene! in that branch which sen!s it to paying branch $The responsibility #n!er "BCs of the branch is to verify all the bills within three !ays, an! sho#l! sen! the bank a!vice to the originating branch$ -' Internship Report
Inward Bi--s for Co--e!tion Register "nwar! bills for collection register are maintaine! for f#t#re recor! p#rposes$ Care is ma!e while posting the amo#nt of bills in the register$ Each bill is assigne! a n#mber accor!ing to the register series$ Every year the n#mber starts from one an! contin#es for the whole year an! next year again from one an! so on$
C)EARING DE.ART(ENT
This !epartment welcomes the che@#es an! other negotiable instr#ments !rawn #pon local branches of other banks$ State Bank of Pakistan has a clearingho#se, in which the bank representative brings che@#es an! other "nstit#tions an! m#t#al claims of each bank on other are off set an! a settlement is ma!e by the payments$ Clearing system is helpf#l for both the c#stomers an! bank in saving of time, labor an! c#rrency involvement$ &ROCE3URE 4OR C"EARI#% CHE@UE' A#3 I#'TRUME#T' UB" is a member of SBP an! has an acco#nt with SBP$ The clearingho#se of SBP, thro#gh which branches forwar! an! receive clearing che@#es, with a sche!#le, con!#cts clearing$ The clerk of forwar!ing branch prepares the sche!#le an! vo#chers of all the clearing che@#e, which he receive! on that !ay an! sen!s these che@#es to the checking officer$ Checking officer passes these che@#es an! vo#chers by his initials, en!orsement stamp an! branch special crossing stamp$ Clerk posts the contra entries of these vo#chers in the clearing register$ :t every !ay at abo#t ':3- a$m$ 1epresentative of all local banks are in clearing ho#se of SBP, to receive an! forwar! the che@#es$ &ROCE"URE 4OR A3VI'I#% HBO ACCOU#T :ll the inter9bank a!G#stments will be effecte! thro#gh >* acco#nt, it will be essential for the branches to a!vise hea! office acco#nt abo#t every transaction$ The SBP will sen! a consoli!ate! !ebitIcre!it a!vice to the branches in respect of clearing che@#es !elivere! or receive! from the branches$ The amo#nt of the a!vice will agree with total amo#nt appearing in the sche!#le of che@#es !elivere!Ireceive!$ Copies of all a!vice will be sent to hea! office$ The other branches will not sen! any a!vice to hea! office$
TRA#'4ER 3E"IVERY Branch receives the che@#es an! other negotiable instr#ments !rawn on other branches of the same bank$ 0ain branch of the UB" han!les the transfer !eliveries of che@#es$ The same clearing che@#e proce!#re will be a!opte! in the transfer !elivery case except both availing the facility of SBP, "n case of che@#e !rawn on one branch an! collecte! by another branch for the cre!it of its constit#ents the branch !elivering the che@#es will sen! a consoli!ate! !ebit a!vice to the !rawee branch$ Clerk maintains the le!ger for transfer !eliveries, copies of all the a!vice will en!orse to hea! office as #s#al$ CO""ECTIO# M C"EARI#% &ROCE''
,9Procee! Aate
UB" M -tan
79che@#e
UB" "a.ore
0r$ Sa@lain :Ic
69che@#e 49Cre!it :!vice Aor Collection
'B& M -tan C-earing Ho se

-9Cre!it :!vice (9che@#e
MCB M -tan
0r$ :li :Ic %9che@#e
S#ppose 0r$ :liBs :Ic ;acco#nt< is in any 0CB 0#ltan Branch$ >e p#rchases some pro!#cts from 0r$ Sa@lain who is the party of /ahore$ "t means 0r$ :li has to pay the amo#nt in /ahore to 0r$ Sa@lain$ S#ppose 0r$ :liBs :Ic is in any 0CB 0#ltan branch an! 0r$ Sa@lainBs :Ic is in .B/ /ahore 2ent branch$ So, 0r$ :li will make the che@#e of his own acco#nt an! say to his bank ;0CB< to pay it in .B/ /ahore branch in Sa@lainBs :Ic$ Then the 0CB 0#ltan branch will sen! this che@#e to .B/ 2ent branch /ahore where there is Sa@lainBs :Ic$ the .B/ 2ent branch /ahore will sen! this che@#e to the main ;h#b< branch of .B/ ;its own bank branch< in 0#ltan for the clearing process$ Then main branch of .B/ 0#ltan will sen! this che@#e to the SBP clearing ho#se 0#ltan$ The bank sen!s its own employee to the clearing ho#se with all the che@#es of other banks$ :n! then SBP clearing >o#se will sen! this che@#e to the 0CB branch in which the che@#e is ma!e$ "f the :liBs :Ic has s#fficient amo#nt for the payment then this 0CB branch will sen! the Cre!it :!vice to the SBP Clearing >o#se$ Then SBP will cre!it this amo#nt in :Ic of .B/ beca#se the liability of .B/ is increase! an! !ebit this amo#nt in the :Ic of 0CB beca#se their liability has !ecrease!$ Then this che@#e will go to the main branch of .B/ 0#ltan$ :t the en!, the main branch of .B/ 0#ltan will sen! procee! fate to the .B/ 2ent branch /ahore where is the Sa@lainBs :Ic an! the amo#nt will be cre!ite! in the :Ic of Sa@lain$ CO""ECTIO# "n the above example, .B/ 2ent branch /ahore is the collection agent on the behalf of its c#stomer ;Sa@lain<$ :n! the clearing process is happening in 0#ltan between .B/ main branch an! 0CB$ )G "f both banks are in the same city then only clearing process wo#l! be performe!$
SellerBs :Ic
UB" M -tan
% (
B#yerBs :Ic
SBP 0#ltan
Clearing >o#se
MCB M -tan
6 47
Internship Report
6G "f the che@#e has to go in !ifferent branches of the same bank then there will not be a clearing process$ There will only be the confirmation process$
UB" M -tan
Procee! Aate 6
UB" "a.ore
%9Che@#e
I#AAR3 C"EARI#% The bank that has to pay the amo#nt it goes in the process of "nwar! ;internal< Clearing$ >e has to scr#tiny ;Check< that is the che@#e iss#er has the s#fficient amo#nt or notV "n the above example, 0CB is !oing inwar! clearing$ OUTAAR3 C"EARI#% The bank that receives the che@#e of another bank it goes in the process of o#twar! clearing$ Beca#se the bank is inspecting abo#t a person who has an acco#nt in another bank$ "n above example .B/ is performing o#twar! clearing$ CRO'' CHE@UE Cross che@#e is a che@#e thro#gh which the amo#nt is transferre! from one acco#nt to another acco#nt$ +o bo!y can with!raw the amo#nt !irectly by this cross che@#e even the favoree himself #ntil this amo#nt is cre!ite! in the his :Ic$ Then he can with!raw that amo#nt from his own :Ic$
'&ECIME# C'a/1-eD O4 A CRO'' CHE@UE
United Bank "i/ited

>#ssain :gahi Branch, 0#ltan
&"' :CC*.+T +*$ XXXXXXXXXXXXXXX
5:TE XXXXXXXXXXXX
P:O XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX *1 BE:1E1 1.PEES XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 1S$ XXXXXXXXXXXXXXXXXXXXXXX
RE(ITTANCES DE.ART(ENT
Transfer of money or e@#ivalent to money from one branch to another branch of the same bank is calle! remittance$ +ow it has become an easier an! safer metho! both for the client an! banker to transfer their money from one branch to another within the city or *#tsi!e City$ &ARTIE' I#VO"VE3 "n case of remittances normally two banks are involve!, are as #n!er: Originating Bank Bran!. "t is the branch, which iss#e! the instr#ment for remittance$ Res1onding Bank Bran!. The branch that receives the instr#ments for remittances, also known as !raweeBs branch: TY&E' O4 REMITTA#CE 1emittances are classifie! into the following two types: %< 7< "nlan! 1emittance Aoreign 1emittance
1D
In-and re/ittan!es
"t is a transfer of money from one branch to another branch of the same bank within the same co#ntry$ "n this case both the parties will be of the same co#ntry an! same bank$ MO3E O4 REMITTA#CE' .nite! bank limite!, #ses following types for transfers of money: %< 7< 6< (< 12 5eman! 5raft ;55< Pay *r!er ;P*< 0ail Transfer ;0T< Telegraphic Transfer ;TT< 3e/and 3raft C33D
: bank !raft is an or!er instr#ment iss#e! for payment of a certain s#m of money to a certain person$ It is to transfer the funds from one city to another$ There are three parties involve!: 3rawer( "ss#ing Bank$ 3rawee( The bank on which the !raft is !rawn$ &ayee( The name of person to whom the payment is to be ma!e$ There are two types of !eman! !raft, which are as follows a< b< aD 33 Iss ed UB" has a stan!ar! application form that m#st be fille! in by the c#stomer for iss#ance of 5eman! 5raft$ The 55 :pplication Aorm contains: %$ 7$ 6$ ($ -$ 4$ :pplicantBs +ame :pplicantBs :!!ress Signat#re of :pplicant "n Aavor of ;PayeeBs or beneficiaryBs +ame< 5rawn on ;+ame of 5rawee Branch< :mo#nt in wor!s an! fig#res$ 4Internship Report 55 "ss#e! 55 Payable
,$ )$ '$ %3$
:mo#nt of commission charge! by the bank on provi!ing this facility Che@#e +o$ in case of making a 55 against che@#e 55 +o$ Stamp of the iss#ing branch
The Secon! *fficer, Cash *fficer an! another a#thori e! officer m#st !#ly sign this form$ The che@#e of the showing the amo#nt of the 55 is attache! with the application form$ The clerk prepares the !eman! !raft when all the re@#irements are f#lfille!$ :s a preca#tion, the !raft sho#l! be protecting graphe!$ "n the case protect graph is not available, a s#m of the amo#nt payable m#st be written in re! ink prece!e! by the wor!s D.+5E1E or D+*T *ME1E$ "t is known as DProtective CrossingE or sec#rity notation$ 5eman! !raft is then recor!e! in the 55 iss#e! register an! cre!it a!vice is sent to the !rawer branch$ Bank<s C.arges The bank recovers !ifferent types of charges from the applicant on iss#ance of 55, incl#!ing: "$ ""$ """$ Central Excise 5#ty Commission Tax
"M$ Postage Charges 0D 33 &aya0-e Chen the bank branch receives a cre!it a!vice iss#e! by another branch an! the title of the a!vice is !eman! !raft then this is calle! the 5eman! 5raft Payable or the 55 Payable$ Practical proce!#re regar!ing to the payment of !eman! !raft, in the .nite! Bank /imite! may be s#mmari e! as follows: %$ :ll !rafts !rawn on a branch sho#l! be ro#te! thro#gh the 8eneral /e!ger :cco#nts D5raft PayableE of the Bills Payable :cco#nt$ This acco#nt is cre!ite! by the !rawer branch on receipt of the cover in the form of "BC:$ 7$ Signat#res sho#l! be verifie! on all !rafts !rawn on a branch$
6$ +ormally, payment of a !raft sho#l! be ma!e after receipt of a correspon!ing cre!it a!vice$ "n case the a!vice has not been receive!, payment sho#l! be exec#te! thro#gh the approval of the 0anager at the !raweeBs branch who sho#l! satisfy himself with regar! to the a#thenticity of the !raft in terms of signat#res an! otherwise$ ($ *n receipt of a!vice from the !raweeBs branch, signat#res sho#l! be verifie! if the amo#nt of a !raft excee!s 1s$-333I9 5. The !raft when pai! sho#l! be marke! in the 55 payable register$ Essentia- &re!a tions at t.e Ti/e of &ay/ent "$ The instr#ment sho#l! be scr#tini e! properly with regar! to name, 5rawee branch, amo#nt in wor!s an! fig#res protect graphic an! signat#res of officers$ ""$ The payment sho#l! not be effecte! #nless the payee has been i!entifie! to the satisfaction of concerne! officials at !rawee branch$ """$ Extra care sho#l! be exercise! if the payee falls in the category of non9c#stomers$ "t wo#l! be better if an acco#nt hol!er verifies the i!entity of the payee, in s#ch cases$ )2 &ay/ent Order B &ay Order C&OD
: bankerBs Payment *r!er is an instr#ment !rawn by a banker on himself "mplicit in a payment or!er is an #n!ertaking on the part of the banker to pay, a certain s#m of money, on the presentation of the instr#ment$ The payment or!ers are generally iss#e! for anyone of the following practical p#rposes: 12 To facilitate all locally payable expenses on acco#nt of a bank for the reason that s#ch payments are not exec#te! thro#gh che@#es$ )2 62 Aor the sake of inlan! an! foreign remittances in case where the beneficiaries !o not Aor all local payments #n!er instr#ctions of the c#stomers for s#n!ry p#rposes like
maintain acco#nt with the bank$ payment of ins#rance premi#m, payments to thir! parties, cl#b bills, rent an! taxes etc$ The following contains stepwise proce!#ral prescriptions pertaining to the iss#ance an! payment of payment or!er:
4, Internship Report
Iss an!e I2 Aor the iss#ance of payment or!ers, an application will be ten!ere! on bankBs stan!ar! form ;A96(< by the p#rchaser giving his name an! a!!ress thereof "n case of re@#est from the bankB s c#stomer for the iss#ance of the payment or!ers, a letter in this respect, will be obtaine! giving f#ll partic#lars of the payee a#thori ing the bank to !ebit the acco#nt$ II2 The cost of the payment or!er along with an amo#nt of 1s$-I9 as commission pl#s excise !#ty will be pai! on the co#nter$ III2 "n case of letter of a#thority, the total amo#nt i$e$ payment or!er amo#nt, commission, excise !#ty an! postage, if any, will be !ebite! to the c#stomerBs acco#nt as per bank instr#ctions an! contra cre!it will be passe! to Bills Payable Y Payment *r!ers :cco#nt, commission, excise !#ty an! postage acco#nt$ IV2 The application for the iss#ance of payment or!er the 0anagerISecon! *fficer as the case shall sign ;A96(< may be if it is to be iss#e! on bank acco#nt$ V2 The partic#lars of the payment or!er shall be inserte! on the blank payment or!er leaf either thro#gh a typing machine or shall be neatly han! written #sing in!elible ink$ The acco#nt shall also be ro#n!e! off thro#gh a protect graph machine or by han! on top of the VI2 instr#ment2 VII2 S#bse@#ently, the partic#lars of each payment or!er shall be recor!e! in payment or!ers iss#e! register$ The payment or!er shall be signe! by two a#thori e! officers of the bank sim#ltaneo#sly a#thenticating entry in payment or!er iss#e! register an! after verifying the following: a< b< c< !< +ame, co!e = a!!ress of the iss#ing branch$ +ame of the payee$ :mo#nt in wor!s an! fig#res$ 5ate of iss#e$
The amo#nt is ro#n!e! off on top of the instr#ment either thro#gh protect graph machine or neatly by han!9writing$ M""$ : stamp containing the following stip#lation shall be affixe! on the back of each payment or!er at the time of iss#e: 1eceive! payment from .nite! Bank /imite! as over leaf on$ 4) Internship Report
:cco#nt ofXXXXXXXXXXXXXX 5ate M"""$ The payment or!er, then, shall be !elivere! to the p#rchaser or to the !epartment concerne! against acknowle!gment on the reverse si!e of A96( as well as on the co#nter foil of the payment or!er$ &ay/ent "$ The payee shall be !#ly i!entifie! by a bank c#stomer or by 0anager I Secon! *fficer in case the payment or!er is presente! for cash payment on the co#nter an! it will be ens#re! that the payment or!er is properly receipte! on its reverse on appropriate val#e or reven#e stamps$ ""$ """$ The payment or!er will then be entere! in payment or!ers iss#e! register after marking The payment or!er will then be passe! for payment as per bank instr#ctions$ the !ate of payment against the !ate of iss#e in the contra col#mns #n!er a#thentication$ "M$ The proce!#re as given above will be a!opte! in case of all payment or!ers receive! for payment, except that #s#al preca#tions shall be observe! to ens#re that the bank stan!s M$ 62 !ischarge! from the payment in !#e co#rse$ Mai- Transfer CMTD
Some times a constit#ent of a bank wants to transfer f#n!s from one acco#nt to another or a non9constit#ent wishes to remit f#n!s in a partic#lar acco#nt maintaine! at some place with a branch of the bank or when the acco#nts are transferre! from one branch to another branch, s#ch amo#nts I balances are remitte! by means of mail transfer$ The proce!#re for iss#ance of a mail transfer is the same as !isc#sse! for !rafts except that the applicant is provi!e! with a memoran!#m for money receive! from him for the iss#ance of a mail transfer on a partic#lar branch of the %ank. The payee must be an acco#nt hol!er ;c#stomer< of the !rawee branch$
P:O0E+T *A 0T The proce!#re for payment is as follows$ "$ ""$ """$ 3r2 Cr2 "M$ 3r2 Cr2 M$ *n receipt of a!vice from !rawer branch, the test sho#l! be verifie! if amo#nt excee!s 1s$ -,333$ The partic#lars of 0T sho#l! !#ly be entere! in 0T payable register$ Aollowing vo#chers sho#l! be passe! after the test has been verifie! >ea! *ffice :cco#nt 5rawer Branch$ Bills Payable :cco#nt 0T payable$ Chen the c#stomerBs acco#nt is to be cre!ite!, the following entries are passe!: Bills Payable :cco#nt9 0T Payable C#stomerBs :cco#nt$ "f the payment is to be effecte! in cash, the entries are: 3r2 Cr2 Bills payable :cco#nt9 0T payable Cash$
Before making the payment of 0T, the !rawee branch m#st ascertain the following: "t is !rawn on the same branch$ Payee has signe! the reven#e stamps of a!e@#ate amo#nt$ Payee is properly i!entifie!$ 72 Te-egra1.i! Transfer CTTD
8enerally a mail transfer a!vice reaches the !rawee branch the next !ay, when co#rier arrangements exist$ >owever, when it is sent thro#gh post offices, it #s#ally takes 7 to 6 !ays to reach its !estination$ B#t sometimes an in!ivi!#al whether c#stomer or not, !eman!s that his f#n!s sho#l! be transferre! from one place to another thro#gh the @#ickest means$ "n s#ch cases, transfer of f#n!s message is passe! on thro#gh a telegram, or!inary or express, to the !rawee branch of the bank$ : teste! message is sent to the !rawee branch followe! by the confirmation copy$ "n case the payment is imme!iately re@#ire! by the payee, the teste! message is given on the telephone$ Besi!es normal charges as those recovere! on iss#ance of !eman! !raft, the bank charges
,3 Internship Report
one a!!itional expense i$e$ Telephone Charges of amo#nt 1s$%33 from the c#stomer$ &ay/ent of TT : TT facilitates #rgent transfer of f#n!s either by a telegram or thro#gh telephone$ : step9 wise proce!#re relating to the payment of TT at the !rawee branch is as #n!er: %$ The !rawee branch receives message either on telephone, or thro#gh telegram$ "n case of a telegraphic conversation, the concerne! official at !rawee branch sho#l! ask for the proper i!entification of the official at the !rawer branch$ Chereas the message sho#l! be !eco!e! in case of telegram$ )2 62 The partic#lar of the TT sho#l! !#ly be entere! in the TT payable register$ "n case where the c#stomers acco#nt is to be cre!ite!, following entries be passe!: 5r$ Cr$ 5r$ Cr$ ($ passe!: 5r$ Bills Payable :IC TT Payable Cr$ -. Cash TT sho#l! be pai! after proper i!entification$ TT :cco#nt 5rawer Branch Bills Payable :IC X TT Payable Bills Payable :IC X TT payable C#stomerB s :cco#nt$
"n case where the payment is to be effecte! in cash, the following vo#chers shall be
Cith9in the co#ntry or from abroa!, UB" offers the most efficient an! price competitive services$ Cith its large network of branches, it is poise! to offer service almost at !oorstep of the c#stomers$ UB" is a member of SC"AT ;Society for Corl!wi!e "nterbank Ainancial Telecomm#nications<$ "t is now the privati e! commercial bank to link #p with three international points, 3 0aiI "ondon an! #ew York$ This enables the Bank to provi!e sec#re transmission of foreign exchange payments for tra!e, home remittances an! other transfers in a f#lly a#tomate! manner$
,% Internship Report
MO#EY %RAM
0oney gram service is a person9to9person international money transfer service that allows cons#mers to sen!Ireceive money aro#n! the worl! in min#tes, with no bank acco#nt re@#ire!$
4EATURE' O4 MO#EY %RAM

4A'T Cith money gram yo#r money can be transferre! from almost any co#ntry in the worl! beca#se it is a reliable an! tr#ste! way to sen!Ireceive money worl!wi!e$ 'A4E The money gram service is #se! aro#n! the worl! beca#se it is a reliable an! tr#ste! way to sen!Ireceive money worl!wi!e$ CO#VE#IE#T 0ore than -3,333 0oney8ram agent locations in more than %-3 co#ntries; comp#ter networke! to ens#re that yo#r money is transferre! within min#tes$ Easy( 1G )G reference n#mber$ 6G 7G Sen!er calls the receiver an! informs him of the transaction reference 1eceiver can go to any 0oney8ram representative, show an "$5, fills n#mber an! the amo#nt of money sent$ CHow to Re!eive yo r transferD Sen!er abroa! goes to nearest 0oney8ram representative, fills o#t a .pon completing the transaction, sen!er will be given a transaction
form, han!s in the amo#nt he wishes to sen! an! the sen! ;service< feeJJ, an! shows an "$5$
o#t a simple form mentioning sen!erBs name an! amo#nt expecte!$ ,G +*TE: 1eceiving agent han!s over the money to receiver$ DC#rrency exchange rate set by 0oney8ram or its representatives will be applie!E$
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CA'H 3E&ARTME#T
This is sensitive !epartment of the branch$ +o other person is allowe! to enter in the premises of cash !epartment$ :s obvio#s from name that this !epartment !eals in cash !eposits an! payments$ Cash !epartment is performing its f#nctionsI!#ties man#ally$ Aor payments an! receipts, it has to maintain certain sheets, books of acco#nts an! vario#s le!gers, which are as #n!er: %< 7< 6< (< -< 4< ,< Cash receive! vo#cher sheet Cash pai! vo#cher sheet Token register Transaction le!ger Pay9"n9Slip recor! Che@#e book recor! Cash balance book
&ROCE3URE 4OR CA'H &AYME#T' The instr#ment against which payment is ma!e that is the che@#e$ +ormally the che@#es come for payment in the branch are, che@#es receive! at co#nter for payment an! other che@#es are Clearing or Transfer Che@#e$ +o payment is ma!e against any other monetary instr#ments$ Special Considerations Chen che@#e is receive! for payment special care is taken abo#t the signat#re of the acco#nt hol!er, !ate, no cross or c#tting in fig#res, signat#re at the back of the che@#e presente! for payment$ "f any thing is fo#n! wrong then che@#e is !ishonore! an! is given to c#stomer for rectification$ "f the che@#e is fo#n! vali! in all respect then Token Clerk assigns token to the che@#e at the back$ The same Token is given to the c#stomer as a proof$ The next step is forwar!ing che@#e to the acco#ntant for the verification of the signat#re with specimen car! signat#re$ "f signat#re are not accor!ing to specimen car! then the che@#e is ret#rne! to c#stomer an! token is taken back$ "n token register a note is written that che@#e ret#rne! #npai!$ "f signat#re are similar with the specimen car! than che@#e amo#nt is poste! in ,6 Internship Report
/e!ger Car!ITransaction /e!ger$ Special care is given to the balance of the acco#nt either favorable or #nfavorable$ Overdraft 4a!i-ity "f the balance in the acco#nt is less than the che@#e !rawn, then bank may exten! *I5 facility to its c#stomer b#t now9a9!ays this facility is not provi!e!$ Ait.draw "i/its "f the che@#e is #p to or less than %3,333 then officer can sanction an! in case of greater, than he has to get approve! from his s#periors$ Ainally, after all verifications of the che@#e it is given to the cashier, then payment is ma!e to hol!er of the che@#e$ :t the same time cashier maintains the .ash Receive /oucher 0heet. The cashier performs all these !#ties man#ally$ &ROCE3URE 4OR CA'H RECEIVE3 Aor !epositing any amo#nt in the acco#nt Pay9"n9slip is #se! that is fille! by the c#stomer$ The pay9in9slip is consiste! on !ate, :Ic +o$, an! partic#lar abo#t the amo#nt to be !eposite! in the acco#nt$ The !epositor signs the part of the paying slips, which are retaine! by the bank to show acceptance abo#t the entries, ma!e in pay9in9slip$ The pay9in9slip serves as a vo#cher to Car!ITransaction /e!ger is only #p!ate! with pay in slip$ The cashier checks necessary !etails provi!e! in the pay9in9slip an! co#nt the cash to be !eposite! an! tally with the fig#res written in pay in slip an! in his han!Ico#nter$ "f any mistake is fo#n! then first that mistakeIerror is remove!$ "f there is no one, than cashier fill in .ash /oucher Received Record 0heet an! assigns a vo#cher no$ To both the transactions ma!e in the sheet an! to pay9in9slip$ This vo#cher sheet starts with one an! contin#es for the whole !ay an! next !ay again starte! from one$ "f all is !one well, than acco#ntant a#thenticates the two by signing on the two !oc#ments posting stamps on the slip$ *ne part of the slip is given to !epositor, an! other part is given to clerk for f#rther posting in /e!gers$ The Cashier, at the en! of the !ay has to maintain an! balance the cashbook$ The cashbook contains the opening balance, !etails of payments an! receipts$ The 0anager of the bank signs the consoli!ate! fig#res an! written in cashbook as closing balance, which will the opening next !ay$ C-osing Ba-an!e N O1ening Ba-an!e O Re!ei1t G &ay/ents
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AD-ANCES DE.ART(ENT
DThe len!ing f#nction of the banking for the pro!#ction p#rposes is calle! :!vancesE$ Ty1es of Advan!es There are two main types of a!vances: A#n!e! , +on9A#n!e! 4 nded "oans :re the loans in the form of physical cash$ The interest charge! on the f#n!e! loans is calle! mark9#p$ #onG4 nded "oans :re the loans in the form of g#arantee$ These are also calle! the Contingent "ia0i-ity Cat the moment these are not f#n!e! b#t in some f#t#re !ate it may be f#n!e! if the person !onBt pay the amo#nt$ Aor example in the case of /8 = /C the bank is liable to pay the amo#nt to the favoree if the c#stomer !oesnBt pay itD2 The rate of interest charge! on non9f#n!e! loans is calle! the commission$ "t is maGor part of the branch$ Bank provi!es this facility to the people who nee! a!vance money to meet their re@#irements$ The f#nction of :!vances an! Cre!it 5epartment is to len! money in the form of clean a!vances, against the promissory note, as well as sec#re! a!vances against tangible an! marketable sec#rities$ Aor getting the a!vances, the first step is the preparation of cre!it proposal$ Some principles of len!ing are consi!ere! whenever financing is ma!e$ These principles are: Character Capacity Collateral Capital con!ition
#at re of &rod !ts

R nning 4inan!e
The len!ing pro!#ct which was calle! over!raft before "slami ation of Banking system in Pakistan has been name! 1#nning Ainance in the post9"slami ation era$ This is temporary facility when !rawing is allowe! in excess of the cre!it balance in acco#nt$ There are two main types of pro!#cts of finances: %9 +"5A 79 +"CA
#on Interest 3e/and 4inan!e C#I34D

"t is the name of what was previo#sly calle! 5eman! loan or Aixe! /oan$ "t is the cre!it facility for a fixe! amo#nt for a fixe! specifie! perio!$ .s#ally the perio! is one year an! if the extension is !esire!, the limit is renewe! on yearly basis$ 1epayment is ma!e in perio!ical installments$ The s#m of money once cre!ite! in the loan cannot be with!rawn as ,Internship Report
the limit is a#tomatically re!#ce! with each !eposit ma!e into the acco#nt by amo#nt of the !eposit$ "t means w.en a ! sto/er 1ays so/e insta--/ent to t.e 0ank t.en .e or s.e !o -dn<t wit.draw t.at a/o nt again 0e!a se rei/0 rse/ent is sed on-y for t.e adK st/ent in #I342 And adK st/ent /eans w.en a ! sto/er re1ays so/e a/o nt of -oan t.en t.e 0ank !redit t.is a/o nt for 1er/anent 0asis2 In this case the markup is charged from the date of issuance of credit facility to the date of maturity.
Areas of #I34
+"5A finances in three areas: %9 Commercial 79 :gric#lt#re 69 "n!#strial &UR&O'E 12 4or Co//er!ia- Area The p#rpose of +"5A for commercial area is for r nning e51enses2 :n! r#nning expenses are the operating expenses of the b#siness other than the fixe! expenses$ :n! fixe! expenses are of three types ;%9/an!, 79B#il!ing, 690echinery = E@#ipment<$ So other than these expenses all the b#siness expenses are calle! the operating expenses like #tility bills, salaries, p#rchase of raw material, inventory cost etc$ )2 4or Agri! -t ra- Area there are two p#rposes for the loaning of agric#lt#ral area$ aG 4or In1 ts "np#ts means the p#rchase of See!, Aertili er an! pestici!es 0G 4or 4i5ed Assets "t is to p#rchase the fixe! agric#lt#ral e@#ipments like t#be well, tractor etc$ 7G 4or Ind stria- Area "n in!#strial area the loaning p#rpose is to !o the fix investment or to p#rchase the fixe! in!#strial assets like /an!, B#il!ing, 0achinery = E@#ipment$ #O#GI#TERE'T CA'H 4I#A#CE C#IC4D "t is the "slami e! name of what previo#sly was calle! Cash Cre!it$ This facility is #s#ally exten!e! against ple!ge or hypothecation of goo!s, pro!#cts, or merchan!ise$ Mark 1 is 1aya0-e on .e a/o nt a!t a--y ti-i?ed 0ye t.e ! sto/er2 The !rawing power changes too fre@#ently as the movement of the ple!ge goo!s from an! into the go!own is the normal tra!e activity$ "t is also calle! the /imit Ainancing$ +"CA is to meet the working capital ;r#nning expenses< re@#irements$ "t has the chec@#ing facility as well which means the bank gives a che@#e book to the borrower thro#gh which he or she can with!raw the amo#nt within the approve! limit$ 5ebit I cre!its are allowe! to the extent of approve! limit which means the borrower can with!raw the repai! amo#nt as well$ ,4 Internship Report
0ark#p is charge! on !aily pro!#ct basis ;only on #tili e! amo#nt an! perio! of #tili ation of facility < B#t in +"CA when yo# cre!it ;repay to bank< some amo#nt of borrowe! money then it can again be with!rawn b#t before the mat#rity of facility$
3I44ERE#CE' BETAEE# #I34 M #IC4

#I34 12 +o chec@#ing facility$ )2 Cith!rawal canBt be ma!e against the :mo#nt cre!ite! in the +"5A :Ic$ 62 "t is for the fixe! investment$ 72 0ark#p is charge! on the Aacility amo#nt o#tstan!ing$ ,2 >ere is taken only the collateral as a Sec#rity not the Prime Sec#rity$ #IC4 12 Chec@#ing facility$ )2Cith!rawal can be ma!e against the :mo#nt cre!ite! in the +"CA :Ic$ 62 "t is for the working capital only$ 72 0ark#p is charge! only the #tili e! :mo#nt an! tenor$ ,2 Primary sec#rity is also taken with Collateral$
Bi--s & r!.ase 4a!i-ity Bills are p#rchase! or !isco#nte! by the way of making a!vance against che@#es, bills of exchange etc$ receive! for collection$ These are calle! clean bills$ Chen financial !oc#ments are accompanie! by !oc#ments of title to goo!s, s#ch as, bill of la!ing railway receipt, carrierBs or airway bill, these are calle! !oc#mentary bills$ The !isco#nting bills may be either inlan! or foreign$ Bridge 4inan!e P#blic limite! companies nee! temporary accommo!ation to bri!e #p their financial stringency !#ring the time lag between their incorporation an! s#bscription of share capital by general p#blic$ This accommo!ation is calle! bri!ge finance$ "t is sec#re! by the mortgage of companyBs assets an! is payable as soon as the share capital is pai! #p$ Consorti / 4inan!e Chere f#n!ing of h#ge amo#nt is re@#ire! to finance a massive proGect for a consi!erable long perio!, one single bank !oes not prefer to take the entire risk alone$ "n this sit#ation two or more banks Goin han!s an! form themselves into a consorti#m for financing the proGect Gointly, sharing risk proportion to the f#n!s provi!e! by them$ "n consorti#m financing, pari pass# charges on the sec#rities are create! in the favor of the, members of the consorti#m$ These are long9term loans for h#ge amo#nt$
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Ty1es Of 'e! rities

1G Banker<s "ien ;0oveable property possesse! to the len!er cannot be sol! in case of !efa#lt<$ /ien is the bankerBs right to hol! the property #ntil the claim on the property is pai!$ The bankers look at their lien as a protection against loss on loan or over!raft of any other cre!it facility$ "n or!inary lien, the borrower remains the owner of the property, b#t the act#al or constr#ctive possession remains with the cre!itors, tho#gh he has no right to sell it$ )G % arantees Chen an application for an a!vance can offer any tangible sec#rity, the banker may rely on personal g#arantees to protect himself against loss on a!vances or over!raft to the applicant$ 6G Mortgage ;"mmoveable property, lan! I b#il!ing, possesse! to the len!er can be sol! in case of !efa#lt<$ : mortgage is the transfer of an ownership in specific immoveable property for the p#rpose of sec#ring the payment of money a!vance! or to be a!vance! by way of loan, an! existing of f#t#re !ebt, or the performance of an engagement, which may rise to a partic#lar liability$ The person in whose interest the property is transferre! is calle! mortgagee$ 7G Hy1ot.e!ation ;0oveable property possesse! to the borrower can be sol! in case of !efa#lt<$ Chen property in the shape of goo!s is charge! as sec#rity for a loan from the bank, the ownership an! possession is with the borrower, the goo!s are sai! to by hypothecate!$ The essence of hypothecation is that neither the property in goo!s nor the possession of them passes to the len!er, b#t the sec#rity is grante! by means of letter of hypothecation, which #s#ally provi!es for a bankerBs charge on the hypothecate! goo!s$ 0#cca!#m is not impose! in this case$ "ns#rance of the hypothecate! stock is re@#ire! by the bank$ :n! the premi#m amo#nt of the ins#rance will pay the borrower$ Bank is not responsible for that$ ,G &-edge ;0oveable property possesse! to the len!er can be sol! in case of !efa#lt<$ "n a ple!ge, the ownership remains with ple!ge ;borrower<, b#t the ple!ge has the possession of property #ntil the a!vance is repai! in f#ll$ Chile in case of !efa#lter, the ple!ger has the right of sale after giving !#e notice$ Bank gets control over moveable assets thro#gh 0#cca!#m ;is the person who takes care or keep watch the ple!ge! stock<$ #OTE( the person has to get the 5elivery *r!er ;5*< from the bank before the sale of hypothecate! or ple!ge! stock$ /imit of 5* is matche! with the amo#nt of repayment of loan$ +G C.arge CContro-D on Co/1any<s Assets :ssets are of two types C#rrent :ssets, Aixe! :ssets$ So, charge may be on c#rrent assets or fixe! assets of the company as a sec#rity$ There are two other types of charge: 1anking Charge an! Pari Pass# Charge$ ,) Internship Report
aD Ranking C.arge S#ppose there is charge of more than one financial instit#tions on assets of one company b#t on !ifferent assets not on the same assets$ Then it is over viewe! that what financial instit#tion has provi!e the facility an! charge on the assets of that company as a sec#rity before another financial instit#tion$ Aor example, a company has taken the loan from three banks$ :t first the company got a loan from .B/, then after some perio! it got a facility from >B/ an! then from 0CB$ So ranking an! worth of charge! assets is as follows: RA#$I#% %ST Charge 7n! Charge 6r! Charge #AME O4 4inan!ia- Instit tion .B/ >B/ .+"*+ B:+2 Total Charge AORTH O4 CHAR%E3 A''ET' 7 0illion 60 %0 -0
So, accor!ing to 1anking Charge the financial institution+ that has first charge on assets of a company+ has first right to set off their amount if the customer %ecomes %ankrupt. "n case of !efa#lt his assets wo#l! be sol! an! firstly the amo#nt 7 0 wo#l! be pai! to .B/ beca#se of its first ranking$ Then to >B/ an! at the last to the .+*+ B:+2$ "f at the last the companyBs assets val#e is less than the facility amo#nt provi!e! by the .+"*+ B:+2 then it wo#l! get only the remaine! val#e of assets$ 0D &ari &ass C.arge "n this type of charge all the financial instit#tions have the e@#al rights to set off their loans if the c#stomer has become bankr#pt$ Total charge! assets are !ivi!e! with the proportion of provi!e! facility by each bank$ "n case of Pari Pass# charge, the !ebt is not cleare! on the basis of charge ranking$ "n this case all banks are given the priority at the same time on the proportion of facility$ Aor instance, the company has total assets of ( 0 at the time of bankr#ptcy$ B#t he has to give - 0 to the banks accor!ing to the previo#s example$ So these ( 0 assets wo#l! be !ivi!e! to the banks in the proportion of facility amo#nt$ UB" 7 : HB" 6 : U#IO# BA#$ %
Basi! Tenets of "ending Chile there is no single right answer to a len!ing proposal, a banker nee!s to s#re that he has not overlooke! any of the relevant facts before reaching a concl#sion$ 'even 'te1 '!a-e C'''D : seven step scale as #n!er ten!s to cover all the basic tenets of len!ing$ Certain writers on banking, for brevity, for sake, have re!#ce! this scale to 69wor! phenomenon, namely, safety, li@#i!ity an! profitability$ :ll len!ing proposals irrespective of their nat#re an! si e
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sho#l! be eval#ate! against this scale to ens#re that all the relevant aspects have been covere!$ 12 Borrower The first consi!eration in len!ing proposition m#st be borrower himself$ The vario#s aspects of an in!enting borrower, which nee! to be looke! into, are as #n!er$ Conne!tions Connections of an inten!ing borrower, which maybe #sef#l for the bank over a perio! of time Ys#ch as treas#re of a proGect maintaining h#ge f#n!s with the bankYmay be given !#e weigh$ >owever, this sho#l! not be an exc#se for ba! len!ing$ "t may at times be preferable to lose a connection rather to len! where repayment is !o#btf#l$ "engt. of Asso!iation This means the length of time banker has known the borrower$ /onger the association, better are the chances of having meaningf#l insight into the affairs of borrower$ *n the contrary, a newly intro!#ce! client har!ly merits any accommo!ation$ Credit Aort.iness The expression means an! incl#!es the integrityYan evi!ence of effective willingness to repay promptlyYan! repaying capacity of the borrower$ Integrity Chether facilities have been repai! witho#t problem in the past an! whether the borrower general rep#tation is goo! are the two @#estions to be answere!$ "f any !o#bt exists in the min! of the banker concerning the integrity f the integrity of the inten!ing borrower, obvio#sly he wo#l! not len!$ Re1aying Ca1a!ity( Stake of the Sponsors The term refers to the net assets of the borrow$ This may be appropriately calle! worth$ "t is obvio#sly confirming to know that s#fficient monetary reserves or assets are owne! by the borrower to repay the a!vance if the repayment cannot be ma!e from the originally agree! so#rce$ 1epaying capacity of the borrower is also linke! with the !ebt9e@#ity ratio in the proGect$ The fixe! !ebt e@#ity ration falls short to take care of the f#t#re cash flow ha ar!s, for example when proGects !o not generate eno#gh cash for the n#mber of years res#lting in non9servicing of the !ebts, e@#ity at the fixe! ratio keeps the borrower comfortable at the cost of the cre!itor$ "n case of cost overr#n also if the banks !o not obtain from the sponsors their share of the cost escalation, the so9calle! ratio !ogma is fr#strate!, an! !efacto risks of the owner9 borrower in highly leverage! proGects is consi!erably re!#ce!$ The stake of the sponsors is f#rther re!#ce! to the extent the e@#ity is offere! to an! s#bscribe! by the general p#blic$
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Age To len! for 73 years to a person of ,3 may not be a proposal worth consi!ering$ :gain special con!itions apply when len!ing is to a minor$ Similarly in the case of a b#siness concern, it is of significant val#e to know for how long it has been tra!ing$ E51erien!e( 1isk 0anaging Capability :n in!ivi!#al setting #p is b#siness for the first time will be receive! with ca#tion, whereas management of a company, which as been s#ccessf#lly tra!ing for many years, will be !#ly regar!e!$ Mirt#ally all !ecisions are ma!e in the atmosphere of #ncertainty$ >ence there is some risk inherent in each !ecision$ >owever, the !egree of #ncertainty will vary from sit#ation to sit#ation, an! with it the !egree of risk$ Th#s the capability of management to manage risk plays a very significant role in marking any b#siness vent#re a s#ccess$ The eval#ation of the risk9managing capability of the management is, therefore, the most important aspect of the proGect eval#ation$ )2 & r1ose of t.e Advan!e2 The p#rpose of the a!vance m#st be legitimate an! consistent with the bankBs policy$ 8enerally bankers !o not wish to be involve! in risky or spec#lative vent#res$ :!vances may also be !isting#ishe! as those for the p#rchase of an asset those for the replacement of a liability$ 62 A/o nt the amo#nt re@#este! m#st bear a reasonable relationship to the c#stomerBs own reso#rces, an! m#st be s#fficient to achieve the p#rpose, or the bank will be face! with the necessity of a!!itional len!ing to safeg#ar! the o#tstan!ing a!vance$ /ikewise, the amo#nt aske! for may not be in excess of what is gen#inely re@#ire! to achieve the p#rpose$ 72 'e! rity a sec#rity that bears the following characteristics is consi!ere! goo!$ "t sho#l! be: easy to val#e, easy for the bank to obtain the little; easy to control easy to reali e; an! stable in val#e$ 0oreover it sho#l! provi!e a go! margin over the amo#nt lent$ +evertheless sec#rity is 3one of the last consi!erations in any proposition, an! no len!ing sho#l! be ma!e p#rely beca#se goo! sec#rity is offere!$ The proposition sho#l! stan! on its own with the sec#rity provi!ing a c#shion sho#l! things go wrong$ Ter/s of Advan!e The longer the term of a!vance the more risky it becomes as the f#t#reBs more #ncertain$ /ong9term a!vances therefore nee! sec#rity s#fficient to cover the risk$ The term helps also to !etermine the nat#re of a!vance$ 1#nning finance is #s#ally repayable in less than one9year time$ Conversely !eman! finance will be #s#ally grante! for longer perio! of time$ The term of a!vance m#st not in any case excee! the life of the asset being p#rchase!$ )% Internship Report
+2 Re1ay/entB"iF idity a realistic repayment program which is commens#rate with the term of a!vance, the li@#i!ity position of the borrower manifeste! by the proper cash b#!get, an! the reven#e generating capacity of the proGect as evi!ence! by the capital b#!get, sho#l! by eval#ate! an! obtaine! as to its viability$ 82 Yie-d B Ret rn bankers expect some rewar!s for the risk they #n!ertake an! the f#n!s they spare$ They also nee! to be rem#nerate! for the work an! expenses in taking the a!ministering the sec#rity$ .se of Ainancial Statement in the seven9Step Scale :pproach :n essential part of the seven9step approach is the examination of the financial statement to analy e past performance of the b#siness, an! to compare its present operating res#lts with the overall performance of the in!#stry$ These helps banks to assess the experience an! skill of the borrower, the appropriateness of the s#m re@#este!, whether the b#siness is generating eno#gh profit to cover repayment of the a!vance an! ret#rn on it, s#itability of the term for a!vance in the light of the profitability an! growth of the b#siness, the availability of assets as sec#rity, an! the !egree of risk involve! an! the ability of the management to effectively manage that risk$ The break9even analysis an! the analysis of the financial statements thro#gh vario#s ratios help achieve this obGective$ Advan!es 3o! /entation 5oc#ments relating to cre!it can perform two f#nctions: they can be the evi!ence of #n!erlying cre!it transaction or they can be the sec#rity or s#pport to ens#re the f#ll repayment of the !ebt$ "n other wor!s, there are some !oc#ments that we necessarily sho#l! have in or!er to prove o#r claims against o#r clients: they are the evi!ence that client owes #s the money$ "nstea! there are other !oc#ments that we choose to take to ens#re recovery thro#gh a DAirst or secon! way o#t in case that the c#stomers is #nable to pay #s back$ The promissory note is however the best example of a !oc#ments taken as evi!ence of !ebt$ Simply state!, promissory note is written commitment by the borrower to pay bank a s#m of money sometime in the f#t#re$ The mere existence of the promissory note is s#fficient evi!ent of the vali!ity of the !ebt$ *n the other han!, a bank g#arantee or a mortgage on a property or the hypothecation of stock is not the !oc#ment that proves the vali!ity of the !ebt itself$ Ce take them only when we feel that we want to protect o#r expos#re by having !irect access to some specific assets or to the g#arantor in case any thing go wrong with the original cre!it$
Chether they serve as evi!ence or sec#rity, however, cre!it !oc#ments have one thing in common: they embo!y a legal claim of the bank against the client, against certain assets, or against the g#arantor$ "n other wor!s the protection that we get from o#r cre!it !oc#ments base! on the law$ "f the !oc#ments !o not confirm to the law, we are G#st not protecte!$
ReF ire/ent to Meet "n or!er to be effective not only from the legal point of view b#t also for o#r own internal p#rpose, all cre!it !oc#ments m#st meet certain key re@#irements$ Aor Example: Cre!it !oc#ments m#st be appropriate for the nat#re of transaction involve!$ They m#st be s#fficient to provi!e a!e@#ate coverage of the perceive! risk$ They m#st be properly exec#te! ;fille! in< by !#ly a#thori e! signers$ They m#st be legally vali! so that o#r rights will not be impaire! by some formal !efects$ Aor collateral sec#rity the !oc#ments m#st provi!e for fairly straightforwar! access to the ple!ge! assets$ "n the case of !oc#ments on stan!ar! from blanks m#st be properly fille! o#t$ 5oc#ments not on stan!ar! firms sho#l! be either !rawn #p or reviewe! by o#r attorney$ Cre!it !oc#ments m#st be kept c#rrent$ Some of them s#ch as time promissory notes an! ins#rance policies have a specific !ate for expiration or mat#rity$ Res1onsi0i-ity for t.e 3o! /entation 1egar!less of how yo# look at it, there is no way to escape the fact that the responsibility for having the #nimpeachable !oc#mentation package falls s@#arely on the sho#l!ers of the 10$ *ther !epartments of the banks or even legal co#nsel are available to help, b#t the 10, in the final analysis, is the person who has to be satisfie! that the !oc#mentation at han!s meet all the applicable re@#irements$ To begin with it is 10 who base! on his analysis of the risks involve!, first !etermines the kin! of sec#rity !oc#ments that will be re@#ire! to properly protect the bank$ The 10 is also the one who will physically obtain the !oc#ments from the client an! who will have to go back to the client if the !oc#ments receive! are !efective$ The 10 will also have to follow #p with the clients to replace expiring !oc#ments or to obtain those that were properly !eferre!$ The 10 is also the one who has to satisfy himself that the !oc#ments are in or!er before sen!ing them o#t for safekeeping to C:5 an! iss#ance of 5:C$ "t is like wise the 10 who has to review the !oc#mentation physically, whenever it is re@#ire!$ There are at least two instances in which these physical review is man!atory: at the time of ann#al review an! when the acco#nt is a!versely classifie!$
Ainally the 10 again gets involve! when the time comes to ret#rn the !oc#ments to the client, to make s#re that at no time are we expose! to a break in o#r protection cover$ 5oc#ments may be s#rren!ere! to the clients ;a< To replace them with new or #p!ate! ones ;b< Chen the cre!it committee agrees to re!#ce the sec#rity protection ;c< when the facilities have been pai! o#t in f#ll$
The logic behin! making the 10 f#lly responsible for the !oc#mentation is @#ite simple$ The 10Bs involvement in an acco#nt !oes not en! wZhen he gets the CP approve!: from then he m#st see to it that the relationship is kept in goo! shape an! free of tro#bles$ Ce not only make loans, we live with them$ "n ass#ming the responsibility for the a!e@#acy of the !oc#mentation, the relationship manager is simply observing one of the many DCBsE of cre!it: the control of the relationship$ To perform these !#ties the 10 can enlist the help of other #nits both insi!e an! o#tsi!e the bank$ Aor Example; The C:5 provi!es secon! look at the !oc#ments, to make !o#bly s#re that they are in!ee! complete, in or!er, an! in accor!ance with the approve! re@#irements$ The C:5 has the obligation to ref#se to iss#e the 5:C ;in effect blocking the implication of the approve! facility< if the !oc#mentation is !efective$ "n a!!ition, the C:5 is responsible for getting #p a tickler system to remin! the 10Bs of the !oc#ments still to be obtaine!$ The C:5 also is the focal point to provi!e the re@#ire! val#ations in accor!ance with a sche!#le appropriate to a volatile type of collateral ;shares<$ The C:5 is basically the !epartment who permits the 10 to rest on the ass#rance that the !oc#ments he obtaine! from the client are safely t#cke! away in the va#lt an! available for his inspection whenever necessary$ The C1E5"T C*00"TTEE is also val#able so#rce of assistance, not only beca#se of their share! experience b#t also beca#se, in certain cases the cre!it committee may step in if it is willing to accept the a!!itional risk entaile! by a slightly !efective !oc#ments rather than going back to the client for correction$ Ainally, legal co#nsel sho#l! be cons#lte! in any case of !o#bt ;"n some cases, s#ch as term loan agreements or loans to the government, referral to the attorneys is man!atory<$ By an! large, the efficacy of the !oc#ment is more a legal matter than a banking matter$
)( Internship Report
RE@UE'T BY C"IE#T
:t start when the c#stomer wants to avail the facility of loan I limit from the bank he has to s#bmit the D Request 1etter E$ S#bmission of the re@#est letter is the first step in the proce!#re of provi!ing cre!it facility to the c#stomer$ >e himself has to visit the bank an! s#bmit this re@#est letter to the bank$ :mo#nt of re@#est along with relative information abo#t the company as well as the p#rpose for which the company wants to have the cre!it facility sho#l! be mentione! insi!e that letter$ "t is preferable that the letter sho#l! be written on the letter pa! of the company an! sho#l! be stampe! an! !#ly signe! by the owner I chief exec#tive$ :t the time of re@#est the client ;who has come to the bank< is been aske! some @#estions like information abo#t his line of b#siness, abo#t its c#stomers an! s#ppliers, abo#t its sales an! growth, abo#t the reason for the loan I limit an! certain @#estions like that by which it is initially !etermine! either to invest in the form of loan I limit in that b#siness$
Borrower<s Basi! 4a!t '.eet CBB4'D

The secon! step that has to be covere! in the filling of the form name! D BorrowerBs Basic Aact SheetE$ This is a sheet that is provi!e! by the bank to the client an! he has to fill all the blanks properly$ By this basic fact sheet .B/ gets the information abo#t the client an! his b#siness$ The information that is collecte! thro#gh the basic fact sheet is explaine! as follows: BorrowerBs Profile 5etail of 5irectors I *wners I Partners 0anagement Corporate Stat#s +at#re of B#siness 1e@#este! /imits B#siness >an!le! I Effecte! with all the Ainancial "nstit#tions !#ring the last acco#nting year Existing /imits an! Stat#s :ny Crite9*ff, 1esche!#ling I 1estr#ct#ring :vaile! 5#ring The /ast Three Oears 5etails *f Prime Sec#rities 0ortgage! I Ple!ge! Cre!it 1ating 5ivi!en! 5eclare Share Price of the Borrowing Entity +et Corth ;Partic#lars of :ssets owne! by their own name<
Trade C.e!king
Tra!e checking is a system at .B/ that is implemente! to check the cre!it stat#s of the party in terms that either the party has alrea!y sanctione! loan from other banks or not$ :n! if the party has alrea!y sanctione! a loan from an other bank then either the party is making the repayment of the installments in well mannere! or he is at !efa#lt$ "ncase if they are fo#n! as !efa#lter from any bank or leasing company then their cre!it worthiness will be checke! an! )Internship Report
sec#rities re@#irements will be tightene!$ .B/ >#ssain :gahi Branch normally !o tra!e checking from fo#r banks$ These are +ational Bank *f Pakistan, The Bank *f P#nGab, Bank :l9>abib an! Bolan Bank$
CIB Re1ort
C"B stan!s for Central "nformation B#rea#$ C"B is a !epartment at State Bank *f Pakistan ;SBP< that has all the information abo#t the loans Ilimits that has been sanctione! in that region to the parties$ C"B report also tells #s abo#t the write9offs an! !efa#lt cases happene! in the banks an! financial instit#tions$ So C"B report is re@#este! by the .B/ from the SBP abo#t partic#lar party, who has re@#este! for loan facility, to check whether they are !efa#lters or not of any bank or leasing firm$ Trade C.e!king and CIB re1ort .ave sa/e 1 r1ose to !.e!k t.e 1arty for defa -t or writeGoff 1revio s -oan fa!i-ities2 &he question that can %e raised here is that if one can get complete information a%out the party through 0B2 then why it is necessary to do trade checking) 1eason of tra!e checking is that !ifferent banks provi!e the information of all !efa#lters to the SBP$ B#t in some cases it may happen that the party is going to be !efa#lt with in 7 or 6 months b#t still information is not with SBP ca#se party has not !efa#lte! yet in that case it is goo! to have tra!e checking to minimi e the risk$
Re1ort of 4inan!ia- 'tate/ents

Aor obtaining cre!it, party has to s#bmit the last two to five years Balance Sheet an! Profit = /oss Statement ;"ncome Statement< !#ly atteste! to a#thori e! a#!itors$ "t is preferre! that the statements sho#l! be properly prepare! an! a#!ite! by Chartere! :cco#ntants that gives the tr#e pict#re of the b#siness$ B#t in some cases as " observe! in .B/ most of the clients who lie in the category of Cons#mer Banking Client !onBt have their Ainancial Statements$ "n S#ch case .B/ has to prepare the financial statement on the behalf of c#stomer an! it is mentione! in other relative !oc#ments that the financials s#bmitte! are self I #n9a#!ite!$ There is a high percentage of risk involve! in it$
I/1ort and E51ort 3ata

if the party is involve! in import or export b#siness then the bank also consi!er the !ata of three years abo#t imports an! exports$
Eva- ation of &ro1erty

The property that is been offere! as sec#rity in the form of any sort of mortgage is been eval#ate! by certain a#thori e! company$ This eval#ation report helps in !etermining the act#al worth of the property an! while keeping the margin of 73? its force! sale val#e ;ASM< is checke!$ P4or!ed 'a-e Va- eQ is been referre! as the minim#m val#e of a property in any case$ This val#e is calc#late! by keeping the margin of 73?$ "ts form#la is like this: )4 Internship Report
4or!ed 'a-e Va- e N A!t a- va- e R Margin A/o nt Chere D:ct#al Mal#eE is the net val#e of the property to!ay where as margin is the 73? of the act#al val#e an! while s#btracting this form the act#al val#e gives a force! sale val#e of the property$ Aor instance, the act#al val#e of the property is 1s$ %33,333$ :n! the 73? of this val#e will be 1s$ 73,333$ So the force! sale val#e will be 1s$)3,333$ ASM [ :ct#al val#e L margin amo#nt ASM [ %33,333 L 73,333 ASM [ )3,333
Ca-- Re1ort
"f the party seems to be goo! eno#gh with whom the relationship can be !evelope! a 1elationship 0anager ;10< visits the company an! view all the working con!itions of the company, meet with its management an! try to get maxim#m information abo#t the company from insi!e an! even from the o#tsi!e of company from its neighbors$ : report that is prepare! in which all the experience of visit to the company is written$ The property that is been provi!e! as sec#rity in the form of mortgage! property is also checke! for confirmation either that property exist at that partic#lar place or nor which was mentione! in the report an! either it is been eval#ate! properly$ This property is also checke! for pre9mortgage against the loan from any other firm or bank$ :ll this information is written in the report$ Visit Re1ort B Visit Certifi!ate Misit report has the same p#rpose as that of call report$ B#t the main !ifference between the call report an! visit report I visit certificate is that visit report is G#st a single statement for the evi!ence that 10 has visite! the place of both working an! of sec#rity whereas call report is a short s#mmary of the visit an! all information is !escribe! briefly in that report so that C:5 make the right !ecision$
Co/1arative 'tate/ent of 4inan!ia- Conditions

This form is in tab#lar form an! as the name in!icates it helps in analy ing the financial con!ition of the firm from all perspectives$ "n this form bank has to !o the 1:T"* :+:/OS"S of the financial statements s#bmitte!$ :ll the analysis that are covere! by this form are !escribe! below: /i@#i!ity :nalysis :ctivity :nalysis Profitability :nalysis 5ebt :nalysis Mertical an! >ori ontal :ssessment of Profit = /oss Statement Mertical an! >ori ontal :nalysis of Balance Sheet ), Internship Report
Manage/ent Assess/ent 4or/

0anagement :ssessment Aorm is a !oc#ment in which varie! skills regar!ing the management prospective of the property are categori e! an! these skills in each category are rate! with stan!ar! rating criteria by 10 ;1elationship 0anager<$ 10 has to fill this form an! re@#ires a complete backgro#n! an! f#t#re prospective growth knowle!ge abo#t the management$ 10 has to give marks to each category o#t of five$ The rating criteria is as follows: *#tstan!ing [ -, Strong [ (, :cceptable [ 6, Ceak [ 7, Mery Ceak [ %$
MA#A%EME#T A''E''ME#T 4ORM 1ating Board of 3ire!tors 1ep#tation "nvolvement with the company Experience I "nfl#ence So#rce of representation Manage/ent 3e1t. N#alification I Experience Excise of !#ties I a#thority Back9#ps I secon! level s#pport Contin#ity :vailability of a#thori e! signer Co/1eten!e B Re1 tation of Manage/ent Capability of a!ministrative, strategic planning an! planning !ecisions "n!#stry rep#tation Manage/ent Contro-s *rgani ational I hol!ing parent company Ainancial Cost9eval#ation Pro!#ction "nventory 5istrib#tion )) Internship Report Concise N#alitative 1emarks
Collections /evel of a#tomation 0"S system Risk Manage/ent :wareness = i!entification of key risks 0eas#res implemente! to a!!ress these risks Ainancial risk management ' //ary of Rating 0ain weakness 0ain strength Steps being taken to improve weakness Special Aeat#res
&re1aration Of Credit A11rova- CCAD

:fter having the Tra!e Checking from the banks nearby, receiving the C"B report from SBP, having a keen look at the financial reports an! eval#ation reports the step is the preparation of DCre!it :pprovalE which was earlier terme! as DCre!it ProposalE$ C: is !oc#ment that is to be prepare! either by 1elationship 0anager ;10< or the :rea 0anager ;:0<$ "n >#ssain :gahi Central Branch of .B/ 10 was the responsible for the preparation of C:$ the main p#rpose of preparing Cre!it :pproval is that to make the !ecision abo#t the sanctioning of loan @#ite easier$ Cre!it :ppraisal is a six page !oc#ment at .B/ an! has a stan!ar! format$ "t covers all the aspects that are of key importance in making a !ecision abo#tZ the limit I loan sanction$ "t is !ivi!e! into !ifferent segments$ >ere is a brief s#mmary abo#t C:$ Borrower and "o!ation( +ame of the borrower along with its f#ll a!!ress is written in it$ "ine of B siness( Cork or b#siness of the borrower is written in it$ "ega- 'tr !t re( "t !epicts that either the b#siness is Sole proprietorship, Partnership, P#blic /imite! Company or Private /t!$ Company$ &UR&O'E O4 CRE3IT A&&ROVA" Cre!it :pproval is prepare! at varie! time span$ +ormally it is been categori e! into three p#rposes: Initia- Review ( :t the start when the borrower re@#ests for loan$ )' Internship Report
Ann a- Review ( 1ight after one year again C: is prepare! for the checking of *f b#siness con!itions an! position of loan$ Interi/ Review ( "f anything happens #n#s#al !#ring the year then this review is #n!ertaken to check the con!ition either borrower is moving in the right !irection an! is giving mark#p or installments reg#larly$ Originating Unit( The branch of .B/, where the re@#est for a!vances was s#bmitte!$ Aor example, Shamsaba! Branch, Bosan 1oa! Branch or >#ssain :gahi Branch etc$ 4a!i-ity Ty1e( The type of facility that is been #se! by the borrower either it is A#n! Base! like +"CA an! +"5A or +on9A#n! Base! like /C an! /8$ 3es!ri1tion of Credit 4a!i-ities( Every type of facility is being provi!e! with certain format$ /ike in the format of 1#nning Ainance Aacility the acco#nts that are to be !isc#sse! in this format table$
4ACI"IT Y #o2 4ACI"ITY TY&E 3E'CRI&TIO# 4ACI"ITY O4 CRE3IT /"+E :0*.+T 1s$ "n 0illion #ET EP"ST"+8 &RO&O'E3 CHA#%E OBG
+"CA
Aor 1#nning Ainance in CA :cco#nt9CA & r1ose( Aor working capital re@#irement to finance inventory receivables$ AB! #o( Mark 1( Existing +il P$: ;per ann#m< N#arterly propose!: 4? P$: or N#arterly C-ean 1 B AdK st/ent( :nn#al for 6 !ays on or before O tstanding( Aresh :cco#nt T*T:/
'ECURITY( This is the most important section from the point of view sanctioning loan to the party$ :ll the sec#rities against the loan that are provi!e! by the party are !isc#sse! in this section$ "ts stan!ar! format is like this in the C:$ Sec#rity '3 Internship Report
Aacility Aacility +o$ Type % +"CA
5escription of Sec#rityIS#pport >el! P1"0E:
C*//:TE1:/:
5oc#mentation: "B94, "B9%7, "B97(, "B97-, "B97', letter of contin#ity$ >ere Prime sec#rities are those sec#rities that have primary importance an! will be sol! by the bank first in case of bankr#ptcy of the b#siness$ Collateral sec#rities are of secon!ary importance an! will be kept #n!er consi!eration after prime ones$ :s far as !oc#mentation is concerne! with every sort of facility an! against the sec#rity there is some partic#lar !oc#mentation that has to be performe! that give the tr#e evi!ence of the transaction an! will act as sec#rity against the loan availe!$ 4inan!ia-s( This section of the C: contains the financial !ata abo#t the borrower$ This financial !ata helps the managers of .B/ to make the analysis of the company an! their cre!itability to !etermine either it is applicable to sanction them the facility re@#este! or not$ A"+:+C":/S Sales +et "ncome 5ays :Ic 1eceivable 5ays "nventory +et *perating Cash 8eneration Tangible +et Corth Corking Capital C#rrent :ssets C#rrent /iabilities C#rrent 1atio 5ebtIE@#ity 1atio AO AO 6%9%797337 AO 6%9%797336
This is the sample format of financials #se! in the cre!it approval$ I/1ort M E51ort( '% Internship Report
"nformation abo#t export an! import is also a part of C:$ :s the table shows only the tra!e in terms of r#pees is nee!e! to be mentione! in this area$ M*/.0E *A B.S"+ESS "mports Exports *ther ;Specify< !eposits AO AO AO
Co//entsBRe!o//endations( "n the section of comments an! recommen!ations the 10 an! S10 give their comments abo#t the party an! recommen! either to sanction them facility or not$
1EC*00E+5E5 BO: 10 +ame = Signat#re S10 +ame = Signat#re :1E: 0:+:8E1 +ame = Signat#re
Cre!it Committee :pproval:

+:0EIT"T/EIS"8+:T.1E +:0EIT"T/EIS"8+:T.1E +:0EIT"T/EIS"8+:T.1E
5:C :.T>*1"KE5 BO 1E8"*+:/ C1E5"T :50"+"ST1:T"*+ 5EP:1T0E+T 5:TE: C1E5"T :PP1*M:/ 1E0:12S B1:+C> .+"TE5 B:+2 /"0"TE5 C1E5"T :PP1*M:/ 5:TE 1E0:12S
S"8+:T.1E
C:\ 1EM"S"*+ 5:TE:
12 & r1ose Type of facility along with the p#rpose an! amo#nt of facility is !etermine! in it$ )2 A!!o nt 'tat s B 'trategy
'7 Internship Report
The strategy at .B/ is to ascertain that f#n!e! line approve! is #tili e! properly an! at the same time ens#re that BankBs collateral position not compromise!$ 62 > stifi!ation for A!!o nt 'trategy Aollowing are the terms to G#stify the acco#nt strategy$ Satisfactory financial 8rowth potential 8oo! incomeIret#rn potential Establishe! an! so#ght after name in 0#ltan$ CAD B siness 'trategy B#siness backgro#n! of the party is mentione! in it an! the pro!#cts in which they are !ealing an! their relationship with the s#ppliers an! c#stomers is mentione!$ CBD Manage/ent 'tr !t re B Co/1eten!e Type of management is !etermine! either it is sole9proprietorship or partnership concern or others an! their competency to r#n the b#siness in mentione!$ CCD 4inan!ia- Ana-ysis it is mentione! that all financials s#bmitte! meet the re@#irement of SBP pr#!ential reg#lations an! either they are selfI#n9a#!ite! or a#!ite! by a#thori e! acco#ntants$ :ll the ratios that were calc#late! earlier are analy e! in this portion$ 72 Trend BETTE1 ST:B/E C*1SE: "t is mentione! that either the b#siness is stable eno#gh or not an! its f#t#re growth prospect is mentione!$ ,2 Risks :ll the risks involve! in provi!ing the facility an! abo#t its recovery are mentione! in this part$ >ere is an example of few of the risks involve! in provi!ing facility$ *ne9man show ;"n case of sole proprietorship<$ Aire Stocks become staleIo#t of !ate$ +2 Mitigate 0itigates are the sol#tions to lessen the impact of the risk involve!$ >ere are few in response of the above9mentione! risks$ The proprietor is r#nning its b#siness with a team of expertise, who are looking after !ifferent aspects of b#siness$ Are@#ency is rotation keeps them away from this risk$ "ns#rance cover with assignment of .B/ as loss payee covers this risk$ 82 Aays o t 5ifferent ways are mentione! to have recovery from the party against the facility allotte!$ "nternal cash generation$ '6 Internship Report
/i@#i!ation of collateral 92 Con!- sionBRe!o//endation Concl#sions are provi!e! wither to b#il! long9term relationship with the c#stomer or not$ Basi! Infor/ation Re1ort This page is attache! with the C: an! covers the varie! aspects abo#t the party that ahs applie! for the cre!it facility$
BA'IC I#4ORMATIO# RE&ORT
B1:+C>: 5:TE: *riginating branch name is 5ate on which the C: is mentione! in it$ prepare!$ +:0E: /"ST *A B.S"+ESS: +ame of the company is The b#siness in which the mentione! party is !ealing is mentione!$ :551ESS: :!!ress of the company is @#ote! here$
5:TE: :IC *PE+E5 5ate on which the acco#nt was opene! in the branch$ >*C *BT:"+E5: So#rce thro#gh which the re@#est has come to central branch$ /E8:/ ST:T.S: Str#ct#re of management either Sole Proprietor or Partnership or P#blicIPrivate /t!$
*C+E1S>"P
+ame of the owner;s< is mentione! in it$
0:+:8E0E+T :+5 5"1ECT*1S

5"1ECT*1S +ame of !irectors is mentione!$ 0:+:8E0E+T Top management has !epth, skill, vast experience an! strong s#ccession$ :ggressive an! able to anticipate an! a!apt to change$ '( Internship Report
>"ST*1O >istorical backgro#n! of the company is mentione!$ The !ate of its establishment an! the b#siness perspective along with other relative information is a part of this section$ B:+"+8 :+5 *T>E1 A$/ +*+9A.+5 SEC.1"TOI B:+2BS +:0E *PE1:T"*+S &rod !ts +ame of the pro!#cts that they #se in their b#siness is mentione! here$ A.+5B:SE5 0:129.P B:SE5 S.PP*1T
4a!i-ities "nformation abo#t their shops, showrooms, wareho#ses or !istrib#tion centers is mentione! in this portion$ ' 11-iers and Trade Re1 tation 1ep#tation in the market an! relation with the s#ppliers$ 1elative information from their s#ppliers abo#t the settlement of their past obligations$ 3istri0 tion M 'e--ing Ter/s Cash = cre!it both !epen!ing #pon the cre!ibility of the b#yer$ 0:&*1 "+5.ST1O C*0PET"T*1SI"+5.ST1O *.T/**2 +:0E A"+:+C":/S S>:1E "+ T>E 0:12ET PE1A*10:+CE I
:ll the competitors in the market an! their position or stan!ing among them$ Affi-iated Co/1anies *ther banks or companies from which they have alrea!y taken loan$ +:0E >*C S>:1E *A A:C"/"T"ES with *ther Banks :AA"/":TE5 P1ESE+T .B/ C*0P:+O f#n!e! +on9 f#n!e! +on9 f#n!e! f#n!e! 9 9 9 9 9 9 9 Mol#me of B#siness ro#te! thro#gh .B/ !#ring the last 6 years$ :verage balance C#rrent :cco#nt +o$ 'Internship Report
5eposit$ "mport$ Export$ 4 t re B siness &roKe!tion Aairly a stable b#siness segment with goo! f#t#re growth proGects$ C#stomer 1even#es ;:cco#nt Profitability< Previo#s Oear 0ark#p9A#n! base!: Commission /CBs I /8Bs: *ther "ncome: Total: 9 9 9 9 C#rrent Oear C#rrent Oear to !ate Aorecast 9 0 9 9 9 9 9 0
CRE3IT &RO&O'A" B 3AC :fter obtaining all the information from the client an! negotiating the 10 will prepare the !raft of cre!it proposal on the stan!ar! format an! s#bmit an! s#bmit the same to the C:5 for verification of following: Stan!ar! /ine 5escription /isting of Sec#rity or S#pport Completion of 5oc#ment Check *ff /ist Completion of Pr#!ential Check *ff /ist :fter review the !raft proposal will be initiate! in the pencil an! ret#rne! to 10 for preparation of final CPIC:$ package$ The final CP package will be signe! by the 10IS10 an! forwar!e! to 1C:5 for onwar! circ#lation to the Cre!it Committee 0embers$ 1C:5 will s#bmit the Cre!it :pproval to the available Cre!it Committee 0embers within the marketing #nits, the other Cre!it Committee member in the C10 an! finally the cre!it committee memberISC* with the cre!it #nit$ : total of fo#r cre!it initials are re@#ire!$ :fter :pproval, 10 will be a!vise! along with remarks an! a!!itional terms = con!itions if any impose! by Cre!it Committee members$ The 5oc#mentation Check *ff /ist will be #p!ate! in the light of cre!it committee approvalIcomments if there is any change in the sec#rityIs#pport !oc#mentation$ The 10 will obtain the re@#ire! cre!it !oc#mentation from the c#stomer an! han!over to the !oc#mentation incharge in the C:5 for review an! safekeeping$ The 1C:5 ;1egional Cre!it :!ministration 5epartment< !oc#mentation incharge will review the !oc#mentation an! will a!vice C:5 >ea! the stat#s$ The C:5 hea! will a#thori e !isb#rsement to the concerne! branch$ Presently !isb#rsement is a#thori e thro#gh DSanction :!viceE followe! by the 5:C ;5isb#rsement :#thori ation Certificate<$
'4 Internship Report
The concerne! branch will !isb#rse the cre!it facilities by obtaining the transaction relate! !oc#mentation if any as mentione! in the !oc#mentation check off list$ "n sec#re! a!vances, the bank takes any sec#rity against the loans while in case of #nsec#re! a!vance no sec#rity is taken by the bank$
Ty1es of 'e! rities

12 3ire!t 'e! rity Chen the borrower himself ple!ge sec#rity to convey to the bank a part of his assets e$g$, his heritable property, an ins#rance policy of his own life, shares of Goint stock company in his own name etc$ S#ch as sec#rity can be specifically appropriate! against the !ebt to the bank$ )2 T.ird &arty 'e! rity Chen the sec#rity has been provi!e! by thir! party, either by way of grantee or ple!ge, its val#e !oes not re@#ire to be !e!#cte! by the bank in ranking on the borrowers estate$ 62 %ood 'e! rity The goo! sec#rity has the following merits: /iability: formality$ The bank sho#l! be able to reali e its sec#rity @#ickly an! witho#t #n!#e
Stability of Mal#e: The val#e sho#l! be easily ascertaine! an! there sho#l! not be s#!!en fl#ct#ation in val#e$ Simplicity of Mal#e:The sec#rity can be complete! easily an! cheaply$
&ro/issory #ote CIBG1)D

Promissory +ote is perhaps the best example of a !oc#mentary taken as evi!ence of facility provi!e!$ "t is written comm#nication by the borrower to pay #p a s#m of money sometime in the f#t#re$ >e agrees that he is bo#n! to pay the money that has been lent to him$
"etter of Agree/ent CIBG+D

"t is agreement between bank an! client, in which the client agrees to pay the amo#nt at DPayback priceE$ Payback Price is the amo#nt containing the Principal amo#nt along with mark#p charge! on that amo#nt$ P:OB:C2 P1"CE [ P1"+C"P:/ :0*.+T ] 0:12.P "etter of EF ita0-e Mortgage CIBG)7D E@#itable mortgage is a sort of mortgage in which certain portion of the property is taken as mortgage by the bank while provi!ing !ebt facility$ So e@#itable mortgage is a sec#rity against the !ebt provi!e! an! the !oc#ment as evi!ence that is prepare! to show the val#e of property mortgage along with its complete a!!ress is letter of e@#itable mortgage$ ', Internship Report
"etter of Contin ity Statement regar!ing letter of contin#ity is given as follows: : promissory note payable on !eman! which is given to yo# as sec#rity for the payment by #sIme to yo# of any s#ms now !#e or which may hereafter be or become the from me to yo# #n!er the fiancW agreement;s< entere! between o#rselvesIme an! yo#r Bank$ The sec#rity shall be a contin#ing sec#rity for the payment of any an! all amo#nts !#e from meI#s to yo# #n!er the sai! finance agreement;s<$
"etter of Hy1ot.e!ation CIBG),D

/ike mortgage hypothecation is also a sort of sec#rity in which ownership an! possession of the property is left with the borrower an! the bank G#st get the sec#rity in the form of this !oc#ment which is !#ly signe! by the party that bank has right to sale the property in case the party !efa#lts$ Th#s this letter is also a sec#rity !oc#ment that sec#res the transaction of len!ing$
"etter of &-edge CIBG)+D

"n ple!ge the ownership remains with the ple!ge, b#t the ple!ge has the excl#sive possession of the property #ntil the a!vance is repai! in f#ll, while in case of !efa#lt the ple!ge has the power of sale after giving !#e notice$ So the !oc#ment that is prepare! to show that the property is ple!ge! is terme! as letter of ple!ge$ &ersona- % arantee Chen an applicant for an a!vance is #nable to offer any tangible a!e@#ate or personal sec#rity the banker may rely on personal g#arantees to protect himself against loss on a!vances or over!raft to the applicant$ Undertaking Two con!itions that are #n!ertaken by the parties are as follows: %9The !#ties an! or any other levies as !eclare! by 8ovt$ of Pakistan shall excl#sively be born by o#r company$ 79*#r Company shall s#bmit financials conforming to SBP pr#!ential reg#lations on ann#al basis$ "etter of A t.ority "t is an a#thority that is provi!e! by the party to the bank an! its statement is as follows: D"n the event of myIo#r fail#re to pay the mark9#p, as aforesai! on the !#e !ates$ "ICe hereby irrevocable an! #ncon!itional a#thori e yo# to recover the amo#nt of mark9#p an! other charges !#e an! payable by meI#s #n!er the agreement by !ebiting the same to meI#s$ :ny amo#nt;s< !ebite! to myIo#r acco#nt as aforesai! shall not be @#estione! or challenge! by meI#s, an! shall be !eeme! to !ischarge to the extent of s#ch !e!#ction, the amo#nt of mark9#p an! any other charges falling !#e on the !#e !ates #n!er the agreement referre! above$E ') Internship Report
"etter of 3is0 rse/ent : re@#est by the client to !isb#rse the amo#nt of finance by cre!iting the amo#nt to the acco#nt of party$ "etter of Arrange/ent Statement written in the letter of arrangement goes like this: DCith reference to the limit allowe! to 0IS :BC for which we have this !ay exec#te! promissory note an! other necessary !oc#ments$ Ce hereby acknowle!ge yo# right to cancel the facility at any time with or witho#t intimation to #s$ "n the event of facility being cancelle! by yo#, we #n!ertake to pay yo# all the money !#e to aforesai! !oc#ments pl#s service charges or any an! all cost, charges, expenses an! li@#i!ate! !amages, if any, payable to or inc#rre! by the bank from #s imme!iately on !eman!$E
Agri! -t ra- 4inan!e

:gric#lt#ral finance is of great importance in Pakistan$ :s 4-? of the pop#lation of the co#ntry is engage! in the b#siness of agric#lt#re$ "ts is very #nfort#nate that this profession !oes not provi!e m#ch to the farmers an! c#ltivators to meet even their basic necessities of life$ The #neconomic hol!ing , primitive metho! of c#ltivation, nat#ral calamities s#ch as floo!s an! !ro#ght, illiteracy of the c#ltivators an! lack of infrastr#ct#re incl#!ing organi e! ware9ho#sing have a!versely affecte! the repaying capacity of the agric#lt#rists$ Therefore financing of agric#lt#re is m#ch more complex as compare! to commercial len!ing an! in!#strial financing$ $inds of "oans( Aarmers generally nee! three types of /oans: %$ Short9term /oans 7$ 0e!i#m9term /oans 6$ /ong9term /oans '.ortGTer/ "oans Short9term loans are normally taken at the most for one crop perio!, an! are f#lly recoverable from the procee!s of same crop after its harvest$ These loans are nee!e! for see!s, pestici!es, fertili ers an! wages of hire! labor, which are meant for inp#t for a partic#lar crop$ Medi /GTer/ "oans 0e!i#m term loans are #s#ally taken for a maxim#m perio! of three years, an! they are #s#ally taken for the p#rchase of tractors, t#be9wells, agric#lt#ral implements, cattle an! live9 stocks, !airy farming an! po#ltry farming etc$ '' Internship Report
"ongGTer/ "oans /ong9term loans are generally taken for the perio! above three years, an! amo#nt is #se! for b#ying lan!, constr#cting embankment, improvement of lan! or for arranging !amages etc$ The only sec#rity farmer can offer is the charge on agric#lt#ral lan! an! hypothecation of his stocks$ Co//er!ia- Banks and Agri! -t ra- 4inan!e2 Commercial banks have all along been playing appreciable an! active role in the marketing of agric#lt#ral pro!#ce$ >owever, they have not been able to provi!e long term finance to agric#lt#re obvio#sly !#e to str#ct#re of bank f#n!s, lack of acceptable sec#rities an! the farmers proprietary rights over the lan!$ Tho#gh the State Bank of Pakistan has establishe! the 1#ral Cre!it A#n! which was been #tili e! for agric#lt#ral finance thro#gh the agric#lt#ral !evelopment bank of Pakistan, the commercial banks were @#ite rel#ctant to finance agric#lt#re #p to the year %',7, when the Banking 1eforms *r!er was prom#lgate! by the Ae!eral 8overnment$
Commercial banks have now been expressly aske! to finance agric#lt#re; an! well !efine! scheme have been intro!#ce! for implementation, #n!er which the SBP allocates target to be achieve! bank9wise !#ring the financial year$ C#rrently target allocation is as #n!er: Target for small agric#lt#ral loans #p to 1s$ %33,333I9 in each case provi!e for pro!#ction an! inp#t p#rpose$ Targets of Aarm Cre!it for !evelopment p#rposes$ Targets of +on9Aarm Cre!its for !evelopment p#rposes$ The commercial banks have been a#thori e! to obtain the registere! mortgage of agric#lt#ral lan! an! hypothecation of machinery an! e@#ipment as sec#rity in all cases except those #n!er DSmall :gric#lt#ral /oans to S#bsistence >ol!ersE #p to 1s$ %33,333I9 Aor this p#rpose the val#e of lan! has been presently fixe! at 1s$ (33I9 per :gric#lt#re Pro!#ce .nit ;P".< while bankers are to hol! the margin of 73? of the total val#e$ These Pro!#ce "n!ex .nits are calc#late! in the agric#lt#re Pass Book iss#e! to the lan! owners as the 5oc#ment of Title #n!er the :!vances of :gric#lt#re P#rpose *r!inance %',6$ the salient feat#res of the :gric#lt#re cre!it scheme of the commercial banks are as #n!er; Short9term finance #p to 1s$ %33,333I9 for see!s, fertili ers, pestici!es, water, farm power, hiring of go!owns, transport an! cost of packing material are provi!e! to farmers hol!ing c#ltivating lan! #p to S#bsistence /evel$ These loans are provi!e! free of any interest or service charge if repai! in f#ll within two months after the harvesting of crop for which they are grante!$ Short9term finance for po#ltry an! fr#it farming an! fisheries is provi!e! to the borrower at concessional rate of mark9#p$ The loans are repayable in %) to 7( months, thro#gh installments$ The repayment starts after a grace perio!$ %33 Internship Report
0e!i#m9term loans for !evelopment p#rposes, incl#!ing !evelopment of water reso#rces, farm power, storage an! transportation etc$ is provi!e! to the farmers$ The loans are to be repai! in five years, with the grace perio! of %7 months$ 0e!i#m9term non9farm finances for the !evelopment of livestock, fisheries an! farming are also provi!e$ The loans are to be repai! in seven years with the grace perio! of %) months$ /ong9term finance for the !evelopment of lan!, water co#rses, farm constr#ction, arboric#lt#re, orchar! an! storage facilities is provi!e! to the farmers$ The loans are to be repai! in seven years in ann#al installments, with a grace perio! of %) months$ /ong9term non9farm finance for the !evelopment of livestock, po#ltry farming, forestry an! fisheries is also ma!e available$ The loans are to be repai! in seven years in ann#al installments with grace perio! of %) months$
CO#TRO" A#3 COM&"IA#CE 3E&ARTME#T CCC3D

1GA.at is CC3( "t comes #n!er the :#!it an! "nspection 5eptt$ Previo#sly it was name! as "nternal Control .nit ;"C.< an! the new name of "C. is CC5$ Control an! compliance !epartment is an in!epen!ent appraisal f#nction establishe! to examine an! eval#ate the a!e@#acy an! effectiveness of the B#sinessBs system of internal controls an! @#ality of performance in carrying o#t assigne! responsibilities$ "t is basically establishe! for performing an! monitoring vital in!epen!ent as well as !epartmental control f#nctions that are critical to the ongoing health of the branch$ Since the #nit works interpe!ently, its reporting or work sho#l! be !irectly s#pervise! by the Co#ntry "C. >ea! an! #n!er no circ#mstances Branch 0anagement sho#l! infl#ence their !ay to !ay work$ "t is a !epartment in the h#b I central branch that keeps in view the activities of all the branches that lies insi!e that h#b$ They normally !o internal a#!it of the branches$ :bo#t %( branches are working #n!er the >#ssain :gahi Branch >#b$ They check all the activities of the !epartments of all the branches insi!e the h#b$ Their main work is to pin point the mistakes an! comm#nicate the mistakes from the originating branch in black = white form$ "n the form of sheet they let the branches know abo#t their mistakes like low commission is charge! or wrong che@#e is passe! etc$ :fter pointing o#t the problem they want that branch to rectify the problem if imme!iate action is not taken then they have a#thority to inform abo#t the attit#!e of the branch to the hea! office 2arachi$ )2 CC3 O0Ke!tives 0ain obGectives of CC5 are to:9 %3% Internship Report
%$ Ens#re the reliability an! integrity of financial an! operating information an! the means #se! to i!entify, meas#re, classify an! report s#ch information$ 7$ 1eview the systems establishe! to ens#re compliance with all policies an! proce!#res, an! to ens#re that all the financials are passe! accor!ingly$ 6$ 1eview the means of safeg#ar!ing assets an! an sapHappropriate, verify the existence of s#ch assets$ ($ 1eview the operations or programs to ascertain whether res#lts are consistent with the establishe! obGectives an! goals$ -$ 0aintain high @#ality of work stan!ar!s in branches$ 4$ "!entify problems that may res#lt in potential losses or !amages to c#stomer services$
%37 Internship Report
72 OR%A#I=ATIO# Presi!ent
Co#ntry *perational >ea!
Co#ntry CC5 >ea!
Branch CC5 Staff
,2 :$
CC3 'TA44 CC5 staff will maintain their independence by not involving in operations ;e$g$
processing, s#pervision an! c#sto!y f#nctions etc$<$ They will not have any financial or maintenance access on the system except for in@#iries$ B$ CC5 staff selection criteria, while selecting CC5 staff !#e weight is given to high responsibility level, imaginative an! having in!epen!ent G#!gment, 1ich banking experience an! knowle!ge on lai! !own policies an! proce!#res$
CO#TRO" 4U#CTIO# MECHA#I'M

Aollowings are the main parts of "nternal Control A#nctions: A$ Control Merification I 1eview Charts$ Proof I Balancing Charts$ 5epartmental Control A#nction Checklists$ Corrective :ction 0onitoring$ Cork Plan$ Contro- Verifi!ation B Review C.arts C3e1art/enta- M Inde1endent %36 Internship Report
These !oc#ments are the most important recor!s as they list the act#al control verifications to be performe! by the CC5 an! operating !epartments along with important checkpoints$ They are split between 5aily, Ceekly, 0onthly, N#arterly, an! Semi ann#ally an! ann#ally$ B2 &roof B Ba-an!ing C.arts2
"n or!er to check any #n#s#alI#na#thori e! transaction an! to monitor the long o#tstan!ing items, monthly balancing proofs will be prepare! by the respective !epartments for all s#ch acco#nts in which transactions are passe! man#ally$ The CC5 >ea! has a listing of all approve! 8eneral /e!gerIS#bsi!iary /e!ger hea!s against which proofs are to be prepare! at re@#ire! fre@#encies$ N#arterly the chart will be compare! to the 8eneral /e!ger to ens#re that it is complete an! incl#!e all acco#nts$ 32 Corre!tive A!tion Monitoring2 Corrective action will be notifie! to CC5 in writing by respective : memoran!#m of exceptions if note! !#ring the verification I reviews, will be forwar!e! to Branch 0anager$ manners$ E2 Aork &-an :t the beginning of each month CC5 >ea!Istaff will prepare his work plan for the month, proper planning is !one, an! copy is sent to CC5 >ea!$ Planning sho#l! be kept confi!ential from Branch 0anager$ 42 B$ C$ 5$ E$ A$ stationery c#sto!y$ %3( Internship Report Vita- Contro- 4 n!tions to 0e !arried o t 0y CC32 Perio!ical "n!epen!ent Merifications an! Pro!#ct 1eviews$ Treas#ry f#nction Controls$ Statement 1en!ition ;mailing statementsIbalance confirmations to c#stomers<$ C#stomers Fcomplaints$ 0anagement S#pport A#nctions:9 Corrective :ction Tracking$ Policy I Proce!#res 5eviation Control ;where re@#ire!<$ 5esignationsYat the time of changes for keys an! other sec#rity :$ 0onitoring of 5epartmental balancing I proofs of 8eneral I S#bsi!iary /e!ger hea!s$ !epartments$ CC5 will monitor the pen!ing file an! work closely with the vario#s timely
%3Internship Report
4OREI%# EXCHA#%E E&ARTME#T

:t the last stage " have been poste! in Aoreign Exchange 5epartment of the Branch, where " have experience! for two weeks$ 5#ring this time what " have learne! is as follows:
HIERARCHY OF THE DEPARTMENT

:MP
A$E 5ept: "ncharge
5eposit Seat
1emittance
"mport = Export
FUNCTIONING OF CURRENT DE.ART(ENT

1emitta nce
Export
A$E 5epartme nt
"mport
5eposit
Deposit Section:
The c#stomer m#st have his acco#nt with o#r branch, beca#se witho#t it we cannot enter into the foreign exchange transactions$ So a !epositor opens an :cco#nt with the Bank in any form like: "n!ivi!#ally &ointly Partnership Corporation
Aoreign$ Exchange 5epartment of the Bank accepts #n!er note! Aoreign C#rrency from acco#nt hol!ers$ State Bank of Pakistan provi!es exchange rates on !aily basis$ :n! !aily transactions are recor!e! at their c#rrent exchange rates$
.S 5ollar British Po#n! Sterling &apanese Oen 5#tch 0ark Sa#!i 1ial, etc$
O1ening of 4oreign C rren!y A!!o nt2 /ike normal acco#nt opening form, an acco#nt opening form is provi!e! to prospective c#stomer$ :t the same time intro!#ction of that c#stomer is important con!ition so that provi!e! information by c#stomer may be got a#thenticate!$ :n existing acco#nt hol!er may intro!#ce the incoming c#stomer$ The 0anager takes new :cco#nt hol!erBs specimen signat#res on specimen Car! in or!er to avoi! f#t#re problems$ :t the occasion of with!rawal of f#n!s :cco#ntant compares the signat#res on che@#es to the provi!e! Specimen of Signat#res so that gen#ineness of the che@#es may be verifie!$
:t the time of !epositing f#n!s the amo#nt of f#n!s is !ebite! to D 4oreign C rren!y On Hand A!!o nt$E = Cre!ite! the &arty<s BA!!o nt Ho-der<s ABC2 %3, Internship Report
:t the time of with!rawal of f#n!s the amo#nt is cre!ite! toE 4oreign C rren!y On
Hand A!!o nt$ = 5ebite! to &arty<s BA!!o nt Ho-der<s ABC2
Remittance section:
Aoreign Exchange !epartment remits Aoreign C#rrency thro#gh #n!er note! Pai! .p 5oc#ments: %$ 7$ 6$ Aoreign 5eman! 5raft 0ail Transfer Telegraphic Transfer
4OREI%# 3EMA#3 3RA4T(
The !eman! !raft is a written or!er is being given by the iss#ing Bank on itBs own behalf to itBs other Branch of the same Bank to pay the certain amo#nt to the concerne! person$
&ROCE3URE TO &RE&ARE C42323D %$ o o o o o o %$ 7$ of Airst of all !raft application is fille! in by the client$ This application contains the #n!er +ame of the partyIPerson in who favor the A55 is being iss#e!$ 5ate :mo#nt to be sent :cco#nt +o if 55 is crosse! :mo#nt of Exchange to be charge! by the Bank$ +ame of Branch$ Chere the A55 is !rawn$ Then cashier sen!s the cash receipt to the acco#nt !epartment$ The acco#ntant recor!s :cco#ntant gives the A55 leaf along with vo#cher ;which was calle! A55 A55 in A55 register$ Thereafter the A55 is iss#e! an! han!e! over to the PartyI note! information$
the amo#nt ;pai! in cash or !rawn from the acco#nt of the :cco#nt >ol!er< in scroll register$ application form before the !eposit of cash< to BankBs :ssistant who recor!s the partic#lars Client$ +ow Bank sen!s a!vice of the A55 to the concerne! Branch where the A55 is to be %3) Internship Report
pai! to the C#stomer *1 his :gent *1 in favo#r of whom he insert en!orsement of the back of the A55$ MAI" TAR#'4ER CMTD(
"t is the transferring of money from on place Branch to another place of the same Bank Cash transaction is not involve!$ :!vice of the 0T is sent along with it$ The amo#nt of 0T is !irectly cre!ite! to the acco#nt of beneficiaryBs acco#nt$ That is why 0T can be #se! to transfer the amo#nt from one acco#nt to the acco#nt of other Branch of the same Bank$ IM&ORTA#T
"t is proper an! pertinent to mention here that proce!#re of iss#ance e of 0T is same as in the case of A55$ TE"E%RA&HIC TRA#'4ER CTTD
This is most rapi! metho! to transfer f#n!s$ Co!ing 0essage is sent thro#gh Telegraphic message *1 on Phone$
%3' Internship Report
TRA3E CYC"E
'E""ER OR EX&ORTER BUYER OR IM&ORTER
'.i11ing !o2 of e51orter !o ntry
'.i11ing !o2 of i/1orter !o ntry
2 EX&ORTER<' BA#$ 2 A3VI'I#% BA#$ 2 CORRE'&O#3E#T BA#$ 2 CO#4IRMATIO# BA#$
2 IM&ORTER<' BA#$ 2 I''UI#% BA#$ 2 CO""ECTI#% BA#$
%%3 Internship Report
EPP/:+:T"*+ *A T>"S T1:5E COC/E 1G "n the very beginning the basic thing is nee! that !rives to foreign tra!e$ So importer feels the nee! to p#rchase some types of goo!s an! contact to the seller at the foreign co#ntry an! nee! the @#otations ;!ealerBs statement of price is calle! @#otation<$ )G Then the exporterBs company sen!s the Pro9forma "nvoice ;@#otation< to the importerBs company$ 6G Then importer takes this Pro9forma "nvoice to his bank for the registration of the contract ;which is enforceable at law<$ 7G Then this registere! contract is ret#rne! to the importer by his bank$ ,G The importer sen!s this registere! contract to the exporter$ +G Chen the exporter receives the registere! contract then he exports the goo!s by any transportation way like by roa! ;Aorwar!ing Co$<, by sea ;Shipping Co$<, by :ir ;air co$< 8G Exporter receives the shipping !oc#ments from the shipping company$ S>"PP"+8 5*C.0E+TS "+C/.5E: a< Bilty ^by sea_ b< Bill of /a!ing ;BI/< ^by sea_ c< 1ailway 1eceipt ^by train_ !< :irway Bill ^by air_ 9G Then the seller gives the three types of !oc#ments to his bank with en!orsement letter = that are: "$ Bill of Exchange ""$ Shipping 5oc#ment ;that he receives from a shipping company< """$ *ther Commercial 5oc#ments ;invoice, packing list, ins#rance certificate, certificate of origin, etc$< *G Exporters bank sen!s all these !oc#ments to the importerBs bank with en!orsement letter ;the letter that certifies the ownership of the goo!s <$ +ow the Consignee Cis the person or firm who has the ownership of the goo!s an! can release the goo!s from port of the importerBs co#ntry<$ 1:G Chen these export !oc#ments arrives in the importerBs bank then these same !oc#ments become the import !oc#ments$ Then the importerBs bank contact to the importer that he make the payment an! = release all these !oc#ments$ 11G Chen the importer make the payment to the bank then bank gives the en!orsement ;transfer of title or ownership of goo!s< an! all the import !oc#ments to the importer$ 1)G +ow importer himself is the Consignee Cwho can release the goo!s from portD2 So, he will go to the port an! will release the goo!s from shipping company$ :n! that shipping company takes the receipt of receival as an evi!ence$
%%% Internship Report
"mporter has to pay the c#stom !#ty an! premi#m of ins#rance if premi#m is not pai! by the exporter$
E#TITIE' I#VO"VE3 I# THE 4OREI%# TRA3E ARE( "$ Exporter ""$ "mporter """$ ExporterBs Bank "M$ "mporterBs Bank M$ Shipping Company M"$ "ns#rance Company M""$ C#stom *ffice 'OME MAI# TY&E' O4 3OCUME#T' I#VO"VE3 I# 4OREI%# TRA3E 1G Endorse/ent "etter "s the transfer letter in which title ;ownership< of goo!s is transferre! from one party to anther one$ "t moves from exporter to the exporterBs bank an! then to the importerBs bank an! the to the importer$ E+5*1SE1 is the person negotiating the instr#ment ;who gives his goo!s<$ E+5*1SEE is the person to whom it is transferre!$ )G A!!e1tan!e Exporter !raws ;makes< the bill an! sen! it to the importer$ "f importer ;!rawee< accepts it an! make the signat#res on it then it is known as acceptance an! this acceptance !oc#ment is calle! acceptance letter$ 6G Bi-- of E5!.ange C3raftD The bill of exchange ;BIE< commonly refers to as the !raft or bill, is an #ncon!itional or!er in writing, signe! an! a!!resse! by the !rawer ;exporter #s#ally< to the !rawee re@#iring the !rawee ;importer< to pay the !rawer ;exporter< a certain s#m of money at sight or at a fixe! or !eterminable f#t#re time ;#sance<$ 7G Bi-- of "ading CBB"D "t serves as a receipt for goo!s, an evi!ence of the contract of carriage, an! a !oc#ment of title to the goo!s$ BI/ contains all !ata pertaining to the merchan!ise that is shippe!$ "t incl#!es the name of a< MESSE/ on which the goo!s are loa!e! b< The P*1T at which the goo!s are loa!e! c< The gross weight of the goo!s shippe! !< The mark an! n#mber of packages loa!e! e< The P*1T at which the goo!s are to be !ischarge!, an! f< Clear !escription of the goo!s for c#stom p#rposes ,G T.e Certifi!ate of Origin "t is iss#e! by the Chamber of Commerce an! "n!#stry certifying that the goo!s that have been exporte! have entirely or largely been man#fact#re! in the co#ntry state! on the certificate$ Beca#se some pro!#cts are ma!e in exporterBs contry an! some are ma!e by another co#ntry$ %%7 Internship Report
+G T.e Ins ran!e Certifi!ate The goo!s that are shippe! for sale abroa! are ins#re! #n!er an 3pen 2olicy. &he certificate of ins#rance contains f#ll !escription of goo!s, marks on the packages, weight, port of origin ;export<, !estination, etc$ 8G Co//er!ia- Invoi!es "t is a b#siness !oc#ment which is ma!e o#t by the seller containing f#ll information abo#t the !escription of goo!s, the !ate of sale, the terms on which the goo!s are sol! an! f#ll a!!ress of the b#yer an! seller$ Ce can s#mmari e the previo#s tra!e cycle as follows: EX&ORTGIM&ORT &ROCE3URE 1G Seller an! b#yer concl#!e a sales contract, with metho! of payment by letter of cre!it ;!oc#mentary cre!it<$ )G B#yer applies to his iss#ing bank, #s#ally in b#yerBs co#ntry, for letter of cre!it in favor of seller ;beneficiary<$ 6G "ss#ing bank re@#ests another bank, #s#ally a correspon!ing bank in SellerBs co#ntry$ To a!vise , an! #s#ally to confirm, the cre!it$ 7G :!vising bank, #s#ally in SellerBs co#ntry, forwar!s letter of cre!it to Seller informing abo#t the terms an! con!itions of cre!it$ ,G "f cre!it terms an! con!itions conform the sales contracts, Seller prepares goo!s an! !oc#mentation, an! arranges !elivery of goo!s to carrier$ +G Seller presents !oc#ments evi!encing the shipment an! !rafts ;bill of exchange< to paying, accepting or negotiating bank name! in the cre!it ;the a!vising bank #s#ally<, or any bank willing to negotiate #n!er the terms of cre!it$ 8G Bank examines the !oc#ments an! !raft for compliance with cre!it terms$ "f complie! with, bank will pay, accept or negotiate$ 9G Bank, if other than the iss#ing bank, sen!s the !oc#ments an! !rafts to the iss#ing bank$ *G Bank examines the !oc#ments an! !raft for compliance with cre!it terms$ "f complie! with, SellerBs !raft is honore!$ 1:G 5oc#ments release to b#yer after payment, or on other terms agree! between the bank an! b#yer$ 11G B#yer s#rren!ers bill of la!ing to carrier ; in case of ocean freight < in exchange for the goo!s or the !elivery or!er$ Internationa- Co//er!ia- Ter/s C I#COTERM' D The "+C*TE10S ;"nternational Commercial Terms< is a #niversally recogni e! set of !efinitions of international tra!e terms, s#ch as A*B, CA1, :+5 C"A , !evelope! by the international Chamber of Commerce ;"CC< in Paris<, Arance$ "t !efines the tra!e contract responsibilities an! liabilities between b#yer an! seller$ "t is inval#able an! a cost9saving tool$ The exporter an! the importer nee! not to #n!ergo a lengthy negotiation abo#t the con!itions of each transaction$ *nce they have agree! on a commercial term like A*B, they
%%6 Internship Report
can sell an! b#y at A*B witho#t !isc#ssing who will be responsible for the freight, cargo ins#rance, an! other costs an! risks$
EXA CE5 AorksD Ex means from$ Corks means factory, mill or wareho#se, which is the sellerBs premises$ EPC applies to goo!s available only at the sellerBs premises, an! for the s#bse@#ent costs an! risks$ 4CA C4ree !arrierD The !elivery of goo!s on a tr#ck, rail car or container at the specifie! point ;!epot< of !epart#re, which is #s#ally the sellerBs premise!, or a name! railroa! station or a name! cargo terminal or into the c#sto!y of the carrier, at sellerBs expense$ The point ;!epot< at origin may or may not be a c#stoms clearance center$ B#yer is responsible for the main carriageIfreight, cargo ins#rance an! other costs an! risks$ 4A' C4ree A-ongside '.i1D 8oo!s are place! in the !ock she! or at the si!e of the ship, on the !ock or lighter, with in reach of its loa!ing e@#ipment so that they can be loa!e! aboar! the ship, at sellerBs expense$ B#yer is responsible for the loa!ing fee, main carriageIfreight, cargo ins#rance, an! other costs an! risks$ 4OB C4ree On BoardD The !elivery of goo!s on boar! the vessel at the name! port of origin ;loa!ing<, at sellerBs expense$ B#yer is responsible for the main carriageIfreight, cargo ins#rance an! other costs an! risks$ C4R CCost and 4reig.tD The !elivery of goo!s to the name! port of !ischarge< at the sellerBs expense b#yer is responsible for the cargo ins#rance an! other costs an! risks$ The term CA1 was formerly written as C=A$ many importers an! exporters worl!wi!e still #se the term C=A$ CI4 CCostI Ins ran!e and 4reig.tD The cargo ins#rance an! !elivery of goo!s to the name! port of !estination;!ischarge< at the sellerBs expense$ B#yer is responsible for the import c#stoms clearance an! other costs an! risks$ C&T CCarriage &aid ToD %%( Internship Report
The !elivery of goo!s to the name! place if !estination ;!ischarge< at sellerBs expense$ b#yer ass#mes the cargo ins#rance, import c#stoms clearance, payment of c#stoms !#ties an! taxes, an! other costs an! risks$ CI& CCarriage and Ins ran!e 1aid ToD The !elivery of goo!s an! the cargo ins#rance to the name! place of the !estination ;!ischarge< at sellerBs expense$ B#yer ass#mes the import c#stoms clearance, payment of c#stoms !#ties an! taxes, an! other costs an! risks$ 'ig.t 3rafts Vers s Ter/s 3rafts 'ig.t 3raft or 'ig.t "etter of Credit The Sight !raft is most commonly #se! in international tra!e$ "n a sight !raft, the payment is on !eman! or on presentation of the negotiation !oc#ments to the paying bank or the importer$ "n practice, the bank may pay within three;6< working !ays ;not instantly< after the receipt an! review of the negotiation !oc#ments an! i! they are in or!er, that is , the !oc#ments comply exactly to the letter of cre!it ;/IC< stip#lation$ "n certain co#ntries where the b#siness relationships between the exporter an! the bank is well establishe! the bank may pay the exporter a few ho#rs after the receipt of the negotiation !oc#ments that are in or!er$ "n the sample /IC it was stip#late! Davailable by yo#r !raft;S< !rawn at sightE, as s#ch the payment is by sight !raft;s<$ Ter/ 3raft or Usan!e "etter of Credit The term !raft 999time !raft or #sance !rafts999is #se! in a !eferre! payment arrangement$ The payment is on the mat#rity !ate !eterminable in accor!ance with the stip#lations of the letter of cre!it ;/IC<$ the mat#rity !ate can be at a state! perio! after sight or after !ate$ :fter sight 999 :fter the !raft is presente! to the !rawee for acceptance, for example, Dat '3 !ays sightE an! Dt %73 !ays after sightE :fter !ate :fter a specific !ate, for example, Dat %-3 !ays BI/ !ateE ;i$e$, the mat#rity !ate is %-3 !ays after the !ate of bill of la!ing< an! D at %)3 !ays after !ateE ;i$e$, the mat#rity !ate is %)3 !ays after the !ate of the !raft<$
%%Internship Report
.nless the mat#rity !ate is tie! to a specific !ate, the importer may ref#se to accept the !raft #ntil the goo!s have arrive!, s#ch !eferre! acceptance can exten! the mat#rity !ate$
IM&ORT' The !oc#ments that are provi!e! by importer to itBs bank for opening I iss#ance of /IC are as follows: /IC :pplication "B9) *riginal "n!ent I Pro9forma "nvoice "ns#rance Policy Cover +ote with Premi#m Pai! "9Aorm Copy of Sanction :!vice I 5:C no$ Aor the first transaction of receive! 5:C reflecting s#bse@#ent charges$ Confirme! that original 5:C is hel! by #s an! all terms an! con!itions spelle! o#t$ Provi!e! !etail of limit$ "ETTER O4 CRE3IT This !oc#ment is iss#e! by the b#yerBs bank when promises to pay the seller the specific amo#nt when the bank has receive! certain !oc#ments stip#late! in the letter of cre!it by the specifie! time$ Irrevo!a0-e "etter of Credit :n! irrevocable letter of cre!it cannot be amen!e! or cancelle! witho#t the consent of the iss#ing bank, the confirming bank, if any, an! the beneficiary$ The payment is g#arantee! by the bank if the cre!it terms an! con!itions are f#lly met by the beneficiary$ The wor!s D irrevocable !oc#mentary cre!itE or Dirrevocable cre!itE may be in!icate! in the /IC$ Revo!a0-e "etter of Credit : revocable letter of cre!it can be amen!e! or cancelle! by the iss#ing bank at any time witho#t the consent of the beneficiary, often at the re@#est an! on the instr#ctions of the applicant$ There is no sec#rity of payment in a revocable letter of cre!it ;/IC<$ The wor!s Dthis cre!it is s#bGect to cancellation witho#t noticeE, D revocable !oc#mentary cre!it D or Drevocable cre!itE #s#ally are in!icate! in the /IC$
Confir/ed Irrevo!a0-e "etter of Credit %%4 Internship Report
:n irrevocable /IC opene! by an iss#ing bank whose a#thenticity has been confirme! by the a!vising bank an! where the a!vising bank has a!!e! its confirmation to the cre!it is known as confirme! irrevocable letter of cre!it$ The wor!s Dwe confirm the cre!it an! hereby #n!ertakeTE or Dwe a!! o#r confirmation to this cre!it an! hereby #n!ertake TE normally are incl#!e! in the /IC$ :n exporter whose metho! of payment is a confirme! irrevocable /IC is ass#re! of payment even if the importer or the iss#ing bank !efa#lts$ "f the letter of cre!it is not confirme! the correspon!ent bank ;SellerBs Bank< has no obligation to pay the seller when the seller receives the !oc#ments liste! in the letter of cre!it$ *nly the iss#ing bank is responsible$ "f the seller wishes to be able to collect from the correspon!ing bank in its own co#ntry, it will insist that s#ch a bank confirm the cre!it$ Confirmation is generally !one by correspon!ent bank ;exporterBs Bank<$ Chen the sellerBs bank confirme! the cre!it, it #n!ertook an obligation to pay seller if all the !oc#ments liste! in the letter were presente! on or before the stip#late! !ate$ "etter of Credit Transa!tion Chen the b#yer I importer accepts the terms of sales that provi!e for confirme! an! irrevocable letter of cre!it, it goes to its bank to arrange for opening the re@#ire! letter$ The b#yer will f#rnish the bank with the information containe! in the pro9forma invoice; specify the !oc#ments that the exporter m#st present to obtain the payment, an! set the expiration !ate of cre!it$ The iss#ing bank then instr#cts its correspon!ing bank in the exporterBs co#ntry to confirm the letter of cre!it an! inform the seller that it has been establishe!$ The seller then prepares the merchan!ise I goo!s for shipment an! notifies the freight forwar!er who books space on the ship, prepares the export !oc#ments, an! arrange to have the merchan!ise !elivere! to the port$ The !oc#ments together with the sight or #sance !raft !rawn by seller, are presente! to the .S B:+2 which pays the seller an! forwar!s the !oc#ments for collection to the iss#ing bank$ To obtain the !oc#ments that give title to the shipment, the b#yer in Pakistan m#st either pay the sight !raft or accept a time I #sance !raft$ >aving !one so, the b#yer receives the !oc#ments, which are given to the C#stomho#se broker$ The C#stomho#se broker acts as a b#yerBs agent in receiving the goo!s from the steamship line an! clearing them tho#gh Pakistani C#stoms$
"etter of Credit A11-i!ation CIBG9D

:pplication an! :greement for "rrevocable 5oc#mentary Cre!it free negotiate! in beneficiaryBs co#ntry$
%%, Internship Report
"B9) letter is provi!e! with other !oc#ments to the bank of importer by the importer$ "ts is terms as /etter of Cre!it :pplication, which contains almost all the important "nformation that the bank re@#ires for preparing letter of cre!it$ "nformation containe! in "B9) is as follows:
"BC #o2 : certain n#mber is been provi!e! to the /IC an! that n#mber is assigne! by the importerBs bank$ 3ate 5ate is mentione! on which letter of cre!it is prepare!$ #a/e and f -- address of o1ener +ame an! f#ll a!!ress of the importer is re@#ire!$ This importer is also name! as opener beca#se he is re@#esting for opening /IC$ #a/e and f -- address are 0enefi!iary +ame an! f#ll a!!ress of the exporter is also written on the "B9) application$ 3es!ri1tion of /er!.andise B goods 5escription of goo!s is provi!e! normally on this form else it is been referre! from pro9 forma invoice$ &ri!e Price of the pro!#ct is provi!e! in the foreign c#rrency or the c#rrency of beneficiaryBs co#ntry$ Per #nit price as well as total amo#nt of import is also written$ Ter/s of 'a-e :mong the varie! terms of sale like C+A, CPT, A*B,C"A,A:S etc$ a single one is provi!e! on which both the parties have alrea!y negotiate!$ Mode B Met.od of Trans1ort 0o!e of transport is !escribe! either pro!#ct sho#l! be !elivere! thro#gh air or by Sea$ &ort of E5it and Entry +ame of entry an! exit ports are also written on the form$ "f pro!#ct is transferre! thro#gh shipment then the seaport of exporterBs co#ntry is mentione! that is the exit port an! also the importerBs co#ntry port is mentione! from where they want to receive the !elivery$ "f air transport is #se! then the name of both co#ntryBs airport is to be mentione! on the form$ &ro1osed Met.od of '.i1/ent Transshipment an! part shipment are the two terms normally #se! in the form that in!icate either the pro!#ct can be transferre! thro#gh other co#ntry like "n!ian an! "sraillian vessel$ '.i11ing Ti/e /ast !ate for shipment is also been mentione! by the importer on the form$ So exporter has to make shipment before this !ate$ Tenor %%) Internship Report
Tenor in!icate the con!ition that either exporter want payment on sight or he will provi!e some time ;#sance< for payment to the importer$
&roGfor/a Invoi!e
Prior to opening a letter of cre!it, a b#yer fre@#ently re@#ests a pro9forma invoice$ 8enerally the bank #se it when opening a letter of cre!it$ Pro9forma invoice is exporterBs formal @#otations containing following things: 5escription of merchan!ise ;goo!s< Price 5elivery Time Shipping Time Propose! metho! of shipment Ports of entry an! exit Terms of sale
"etter of Credit /etter of cre!it open by means of SC"AT SC"AT 0S8: 0T ,33 A"E/5 %- ;TEST C"T> SC"AT C*5E 7333 < TEST +*$ 5:TE5 :0*.+T: A1*0: .+"/P22: A*1: +:0E *A BE+"A"C":1O B:+2 A"E/5 +:0E SEN.E+CE *A T*T:/ A"10 *A 5*C.0E+T:1O C1E5"T 5*C.0E+T:1O C1E5"T +*$ 5:TE *A "SS.E 5:TE :+5 P/:CE *A EPP"1O :PP/"C:+T B:+2 :PP/"C:+T BE+"A"C":1O CCO$ C*5E :0*.+T :M:"/:B/E C"T>TBOT 51:ATS :T 51:CEE P:1T":/ S>"P0E+T /*:5"+8 *+ B*:15I5"SP:TC>IT:2"+8 "+C>:18E A*1 T1:+SP*1T:T"*+ T* /:ST 5:TE *A S>"P0E+T %%' Internship Report
T:8 7, (3: 73 6% C 6% 5 -% : -3 -' 67 B (% : (7 C (7 : (6 P (( : ((B ((C
(- : (4 : (, : ,% B () (' ,) -6 : -, : ,7
5ESC1"PT"*+ *A 8**5S 5*C.0E+TS 1EN."1E5 :55"T"*+:/ C*+5"T"*+S C>:18ES PE1"*5 *A P1ESE+T:T"*+S C*+A"10:T"*+ *A "+ST1.CT"*+ "+ST1.CT"*+ *A T>E P:O"+8I:CCEPT"+8I+E8*T":T"+8 B:+2 1E"0B.1S"+8 B:+2 :5M"SE5 T>1*.8 B:+2 SE+5E1 T* 1ECE"ME1 "+A*10:T"*+
Mo#chers are prepare! at the time of preparing /C$ Contra Vo !.er C#stomerBs liability /C cash BankerBs liability /C cash 5ebit Cre!it
+arration: amo#nt of /C no$ XXXXXXXXXX 5ate! XXXXXXXXXXX for .S5XXXXXXXXXX on behalf of 0Is XXXXXXXXXXXXX Chere /C no$ is the n#mber that is assigne! by the openerBs bank to the /C$ 5ate! in!icates the !ate on which /C was opene!$ .S5 is the abbreviation of .nite! State 5ollar in case if the C#rrency is in 5ollar otherwise c#rrency amo#nt of beneficiaryBs co#ntry is #se!$ &"' In!o/e A!!o nt Co//ission on "C( Cre!it By amo#nt of commission on /C no$ XXXXXXXX5ate! XXXXXXXXXX for .S5 XXXXXXXXX on behalf of 0Is XXXXXXXXXXXX &arty 3e0it Vo !.er 5ebit 0IS XXXXXXXXXXXXXXXXXXXXXXX To the amo#nt of /C opening charges as per !etaile! !ebite! for opening /C no$ XXXXXXXXXXXXXX 5ate! XXXXXXXXXXXXX for .S5 XXXXXXXXXXXXXX
Inward 4oreign 3o! /entary Bi--s 'ent for Co--e!tion CI43BCD

"n case of "A5BC the !oc#ments are sent for collection to the importBs bank by the exporter bank$ Exporter bank will !o *A5BC ;o#twar! foreign !oc#mentary bills sent for the collection< against those !oc#ments as it is sen!ing the !oc#ments for the collection of money by the importerBs bank$ "mporterBs bank when receives those !oc#ments along with the commercial invoice that shows the position of payment will !o the "A5BC vo#chering$ 1GContra Vo !.er Airst of all the liability that was create! against the importer will be reserve! on contra vo#cher with the same ro#n!e! fig#re note! in liability register le!ger$ 5ebit : bankerBs liability /C cash Cre!it : C#stomerBs liability /C cash )G &"' In!o/e A!!o nt E5!.ange and Co//ission +arration : by amo#nt of service charges on acco#nt of /C no$ XXXXXXXXXXXX !ate! XXXXXXXXXXX for .S5 XXXXXXXXXXXX on behalf of 0Is XXXXXXXXXXXXXXXXXX 6G&"' In!o/e A!!o nt Co//ission on 4oreign Bi-+arration : By amo#nt of Commission charges on /C no$ XXXXXXXXXXXXX 5ate! XXXXXXXXXX for .S5 XXXXXXXXXXXXXX on behalf of 0Is XXXXXXXXXXX receive!$ 7G In!o/e A!!o nt 4a5B'AI4T C.arges By amo#nt of TE/EP charges on /C no$XXXXXXXXXX 5ate! XXXXXXXXXXX for .S5 XXXXXXXXX on behalf of 0Is XXXXXXXXXXXreceive! ,G 4ETCA The amo#nt is cre!ite! to the correspon!ing bank or the bank that has sent the !oc#ments on collection bases$ :mo#nt cre!ite! is mentione! in the covering letter$ +G &arty 3e0it Vo !.er :ll the cre!it Mo#chers are a!!e! an! is !ebite! to the concerne! partyBs acco#nt$ 8G ' ndry 3e1osit A!!o nt amo#nt left over in access in S#n!ry !eposit acco#nt after charging all the taxes an! amo#nt !ebite! in foreign bank is cre!ite! to the partyBs acco#nt$
&ay/ent Against 3o! /ents

"ncase the exporterBs bank has pai! the amo#nt to the exporter on the negotiation of the bank that bank will A5BP an! will sen! those !oc#ments for the receipt of payment for the tra!ing happene! between two parties$ Chen the importerBs bank receives the !oc#ments he will make P:5 means the vo#chers passe! will be of P:5$ The !oc#ments will remain with the bank an! will not be provi!e! to the importer #nless he makes his payment that was !#e on him$
%7% Internship Report
:t the time of lo!gment means at the time when the !oc#ments are receive! by the importerBs bank, entry passe! is as follows 5ebit : +"P:5 Cre!it : >* 5ebit vo#cher passe! is of +one "nterest Payment :gainst 5oc#ments an! is narrate! as D to /C no$ XXXXXXXXXXXXX 5ate! XXXXXXXXXXXX for .S5XXXXXXXXXXXX vi!e P:5 no$ XXXXXXXXXXXXXlo!ge! D$ :t the time of 1etirement when the payment is ma!e following entry is passe! 5ebit : Party acco#nt Cre!it : +"P:5 Cre!it vo#cher passe! is of +on "nterest Payment :gainst 5oc#ments beca#se the liability that was create! is reverse! as the payment is ma!e an! is narrate! as D by amo#nt of /C no$ XXXXXXXXXX 5ate! XXXXXXXX for .S5 XXXXXXXXXX 1etire! D$ 5ebit vo#cher passe! is of the party acco#nt as the payment is ma!e from the acco#nt of party$
E51orts
Bi-- of E5!.ange C3raftsD
The 0i-- of E5!.angeI commonly referre! to as the draft or the 0i--, is an #ncon!itional or!er in writing, signe! an! a!!resse! by the !rawer ;the exporter #s#ally < to the !rawee ;the confirming bank or the iss#ing bank #s#ally<, re@#iring the !rawee to pay the !rawer a certain s#m of money at sight or at a fixe! or !eterminable f#t#re time$ Bi-- of "ading CBB"D The bill of la!ing serves as a receipt for goo!s, an evi!ence of the contract of carriage, an! a !oc#ment of title ;ownership< to the goo!s$ The carrier iss#es the BI/ accor!ing to the information in a 5*C2 receipt, or in some cases accor!ing to a complete! working copy of the BI/ s#pplie! by the c#stomBs broker$ The BI/ m#st in!icate that the goo!s have been loa!e! on boar! or shippe! on a name! vessel, an! it m#st be signe! or a#thenticate! by the carrier or the master, to the agent on behalf of the carrier or the master$ The signat#re or a#thentication m#st be i!entifie! as carrier or master, an! in the case of agent signing or a#thentication, the name an! capacity of the carrier or the master on whose behalf s#ch agent signs or a#thenticates m#st be in!icate!$ Certifi!ate of Origin The certificate of origin is a !oc#ment certifying the co#ntry in which the pro!#ct was man#fact#re!, an! in certain cases may incl#!e s#ch information as the local material an! labor contents of the pro!#ct$ The certificate of the origin is the co#ntry where the goo!s are grown, pro!#ce! or man#fact#re!$
Benefi!iary<s Certifi!ate The beneficiaryBs certificate, sometimes referre! to as the certificate of ass#rance, is a certification iss#e! by the beneficiary of the letter of cre!it showing, #nless wor!ing is specifie! in the /C, the s#mmary of a consignment an! !eclaring ;i$e$, ass#ring the consignee< that the shipment in @#estion confirms to the specifications in the sales contract$ The exporter can iss#e a beneficiaryBs certificate #sing company letter hea!$
&.ytosanitary or &-ant Hea-t. Certifi!ate The prefix FphytoB means plant$ The phytosanitary certificate 999plant health certificate 999 is iss#e! by the 8overnment :gric#lt#ral 5epartment or certifie! "nspector for s#ch agric#lt#ral pro!#cts as see!s, fr#its, vegetables, rice, wheat, soybean, corn, an! mille! materials ;e$g$ flo#r an! soybean meal< , certifying that the goo!s are free from harmf#l pests an! !iseases$ Co//er!ia- Invoi!e The commercial invoice is a recor! or evi!ence of transaction between the exporter an! the importer$ "t is similar to an or!inary sales invoice, except some entries specific to the export L import tra!e or a!!e!$
O tward 4oreign 3o! /entary Bi--s 'ent 4or Co--e!tion CO43BCD

"n o#twar! Aoreign 5oc#mentary Bills Sent Aor Collection ;*A5BC< are the !oc#ments sent for collection by the exporterBs bank$ "n collection, first the importerBs bank will sent the collection from the importerBs acco#nt to the correspon!ing bank an! then that exporterB bank will make the payment to the exporter$ Time !#ration is provi!e! as tenor of 6, 4, ', %7, %- or %) months$ Vo !.ers &re1ared for O43BC *A5BC stan!s for o#twar! Aoreign 5oc#mentary Bills Sent Aor Collection$ 1G Contra Vo !.er( Cat t.e ti/e of -odg/entD 5ebit : Aoreign !oc#mentary bill lo!ge!$ Cre!it : Aoreign !oc#mentary bill sent for collection )G Contra Vo !.er( Cat t.e ti/e of rea-i?ationD 5ebit : Aoreign !oc#mentary bills sent for collection Cre!it : Aoreign !oc#mentary bills lo!ge!$ %76 Internship Report
CRE3IT VOUCHER' ( 6G ' ndry 3e1osit A!!o nt E3' ( Cre!it By amo#nt of export !evelopment charges on *A5BC \ XXXXXXXXXXXXXX :mo#nt reali e! J special rate J 3$7-?$ 7G' ndry 3e1osit A!!o nt AHT Cwit..o-ding ta5D Cre!it By amo#nt of withhol!ing tax charges on *A5BC \ XXXXXXXXXXXXXXX 5ate! XXXXXXXXXXX for .S5 XXXXXXXXXacco#nt of 0Is XXXXXXXXXXXX :mo#nt reali e! J special rate J tax rate ;as per refine! pro!#ct< ,G&"' in!o/e a!!o nt E5!.ange Co//ission on U'3 e51orters( cre!it By amo#nt of Service Charges on *A5BC no$ XXXXXXXXXXX5ate! XXXXX for .S5 XXXXXXXXX :cco#nt of 0Is XXXXXXXXXX +G In!o/e A!!o nt 4oreign Co rier ( income :cco#nt is cre!ite! with flat rate of 1s$ %333I9 for all parties an! for the special parties like Pak :rab Aertili er it is re!#ce! to 1s$'33I9 only$ 8G In!o/e A!!o nt &ostage( "ncome acco#nt is cre!ite! with 1s$ %33I9 as postage charges$ 9G &"' In!o/e A!!o nt Co//ission on E51ort Bi--s( "ncome acco#nt is cre!ite! with 1s$733I9 pl#s 1s$)3I9 ;for bank in a respect of han!ling charges to c#stomer a#thority for !etecting E5S<$ Total making 1s$ 7)3I9 ;1s$ )3I9< is earne! on acco#nt of provi!ing service I han!ling for collection E5S to c#stom a#thorities$ *G In!o/e A!!o nt Tr nk Ca-- C.arges ( "t is flat rate of 1s$%33I9 1:G &arty A!!o nt ( "t is cre!ite! with net amo#nt after !e!#cting all the above note! expenses$
4oreign 3o! /entary Bi--s &aid

"n foreign !oc#mentary bills pai! the exporter negotiate the !oc#ments with the bank$ +egotiation refers to the manner that the payment is ma!e to the exporter by its correspon!ing bank an! that bank then will contact the importerBs bank to pay on the behalf of importer$ That bank to the importerBs bank along with the receipt that in!icates that payment has been ma!e then sen!s the !oc#ments that are negotiate! with the exporterBs bank$ +ormally it is written on the commercial invoice either payment has been ma!e or the payment will be ma!e after collection$
%7( Internship Report
I#4ORMATIO# TECH#O"O%Y 3E&ARTME#T

"n the banking sector .B/ intro!#ce! Comp#ter for the first time$ Software that is #se! in all the comp#teri e! branches of .B/ in Pakistan is .+"B:+2 System ] 7333 software$ This software is programme! in *1:C/E ' lang#age earlier this system was in C*B*/$ .+"B:+2 system is only #se! in Pakistan or it is on +ational basis beca#se of !ifferent laws of co#ntry it is viable only in Pakistan , means in case of Kakat 5e!#ction there is only law in 0#slim Co#ntries$
"n this system all the activities that are relate! to the bank is fee!e! an! this !epartment has access to all the !ata that is relate! to !ifferent branches$ This !epartment helps in provi!ing the statements to the !ifferent !epartments of the bank an! pass book that is provi!e! to the c#stomers so that they can have a view of their balance an! the activities that they perform with the bank can also get thro#gh this !epartment$
7
In%ernal S%reng%hs
'AOT Ana-ysis
Ownershi2 O& S%rong Gro)2 The .B/ is #n!er the ownership of two very strong ;financially< gro#p ;The :b# 5habi 8ro#p = The Best way 8ro#p<$ The Chairman of the bank is >is >ighness Sheikh +ahayan 0#barak +ahayan who is lea!ing role of :b# 5habi 8ro#p$ :b# 5habi 8ro#p has also the ownership of :l9Aalah Bank, an! recently la#nche! a 8S0 0obile +etwork company name! C:1"5 TE/EC*0$ "n Pakistan the largest A5" ;Aoreign 5irect "nvestment< is of the :b# 5habi 8ro#p$ The 5ep#ty Chairman of the .B/ is Sir 0ohamma! :nwar Pervai ;*BE< who is the lea!ing role of Best way 8ro#p$ This gro#p has starte! its b#siness in Englan! an! emerges in the top ten large b#siness entities of Englan!$ This gro#p recently installe! the Cement Plant of Pakistan in Tehsil Chowk Sai!an Shah 5istrict Chakwal$ Sir 0ohamma! :nwar Pervai got the following :war!s in the owner of his b#siness achievements: %< 7< 6< (< -< *r!er *f British Empire ;*BE< ;%''7< 2night ;%'''< >ilal9e9Pakistan ;7333< 0ir 2halil #r 1ehman >#sn9e92arkar!gi :war! Best B#sinessman *f the Oear ;733%< British :war! Arom British N#een Eli abeth ;7333< Pakistan %7Internship Report
4< /ife Time :chievement :war! H)ge 6e2osi%s
;7336<
#he 2an" has sta2le $rowth in deposits since its emer$ence. #he +B, is the second lar$est 2an" in Pa"istan and 2ecause o1 its 34 years lon$ existence it is the trustworthy 2an" in Pa"istan and outside Pa"istan.
Ad an-es on So)nd "asis #he loan 1acility pro ided 2y the 2an" is on sound 2asis. #hey ha e many chec"s and documentation that secure their money a1ter ad ancin$. .ith their strate$y there are ery less chances o1 non-reco ery 1rom the de2tor. In&ras%r)-%)re Because o1 its 5666 Domestic and 54 O erseas Branches they ha e ery $ood in1rastructure and are pre ailin$ now outside Pa"istan also. +B, continually loo"s 1or ways to 2ecome more e11icient and to increase their pro1it mar$ins. "rands +B, has launched their products and aried ser ices with particular 2rand names that is now-a-days a competiti e strate$y in its own. #hey are launchin$ same schemes that are already existent in the 2an"in$ sector 2ut 2ecause o1 $i in$ them 2rand names they are creatin$ uni7ue identity. #heir popular 2rands are +B, .allet 8)#& Card9, +B, )ddress 8house loan9, +B, Dri e 8car 1inancin$9, +BO-,*-E 8online 2an"in$ ser ices9, %)&()% 8tra eler Che7ue9, Clic" - (emit, #e:(a1tar 8remittance ser ice9 etc. 3as% Ser i-e )nother ery important aspect o1 +B, is its 1ast ser ice. E erythin$ $oes ery 7uic"ly. *1 you are loo"in$ 1or a loan, or you want to deposit money or you want to pay your 2ills their ser ices are so 1ast that they respond the customers ery 7uic"ly. ,i"e other 2an"s customers do not ha e to wait 1or the lon$ time. 3inan-ial +B, has 1inancial stren$th as they are $ainin$ pro1it 1rom the ad ances that they pro ide to the or$ani:ations.
Ser i-es +B, is pro idin$ lot o1 ser ices to its customers li"e incase o1 remittances they ha e ser ices li"e Clic" - (emit online ser ice, #e:(a1tar is an other remittance ser ice, +B-O-,*-E is their online ser ice. &oney Gram is their ser ice 1or 1orei$n currency remittance 1rom outside Pa"istan and %amrah is their ser ice re$ardin$ rupee #ra eler Che7ue.
Promo%ion Cri%eria #he promotion criterion o1 employees is made up o1 passin$ the Diploma Examination o1 Pa"istan *nstitute o1 Ban"ers 8*BP9. Good Re2)%a%ion Because o1 its 7uality mana$ement, mar"etin$, inno ation in products and ser ices they ha e esta2lished a $ood reputation in the 2an"in$ sector. INT#RNAL *#A,N#SS#S Cen%rali!a%ion +B, is centrali:ed. *t means authority is not dele$ated to 2ranch le el. &ana$er cannot ta"e initiati e re$ardin$ di11erent decisions such that 1or $i in$ 1inance. Low Promo%ional A-%i i%y #he ma;ority o1 people are not well aware a2out the products o1 +B,. *t is due to their ery low ser ices o1 promotional acti ity. Low Mo%i a%ion Le el #here is low le el o1 moti ation in the employees o1 the 2an" Rea-%i e A22roa-h +B, &ana$ement has opted reacti e approach they respond to the mar"et ery slow and are reluctant to ta"e initiati e 2e1ore the pro2lem arise. #?T#RNAL OPP#RTUNITI#S Mobile "anking %7, Internship Report
&o2ile 2an"in$ is a concept that has started to 1ind its roots in the 2an"in$ sector. So it is a 2i$ opportunity 1or +B, to a ail this chance at 2i$ le el. In%erna%ional #@2ansion Opportunities exist 1or expansion o1 +B, chains in the *nternational )rena, in particular in Germany and Europe. Particular *n ention must 2e $i en to the indi idual country<s customs and cultural practices to 2e success1ul.
Trade Shows +B, should or$ani:e trade shows 1or the promotion o1 export 1or that they should 1inance the companies those who wanted to internationali:e and wanted to introduce their product and ser ices outside Pa"istan. Liberali!a%ion ,i2erali:ation is a concept that in under discussion around the world as this is $oin$ to 2e implemented 2y .#O in a 1ew years to come. .ith the li2erali:ation many industries are expected to 2e open in Pa"istan and with 1ree tradin$ lot o1 trade acti ity is expected. So "eepin$ in iew these perspecti es there is $reat opportunity 1or +B, to 2e stron$er. So-io-)l%)ral )n external opportunity exists in e11orts to impro e the social en ironment o1 local communities and society in $eneral 2y o11erin$ inno ati e, community = in ol ement pro$rams. #?T#RNAL THR#ATS Ra2id Changes #he rapidly chan$in$ en ironment in the 2an"in$ sector and the 7uic" response o1 the other 2an"s to these chan$es can 2e a threat 1or +B,. C)s%omer "eha ior .hat customer really wants is a di11icult thin$ to identi1y as to identi1y the customer perception and its 2eha ior is complex procedure. So the chan$in$ needs o1 the customer can 2e a threat 1or the 2an"s.
%7) Internship Report
Go ernmen%al Poli-ies Chan$in$ Go ernmental Policies an insta2ility in Politics can 2e seen as a threat 1or the 2an"in$ sector. Com2e%i%ion Competition can 2e the $reatest threat 1or the +B,. )s old 2an"s ha e started chan$es and many new 2an"s are emer$in$ as a stron$ entity so +B, will 1ace a stron$ threat 1rom this competition unless the adopt pro = acti e approach to handle these threats.
,
S*I3T M#CHANISM
Re!o//endations
S*I3T mechanism is $ainin$ importance 1or the treatment o1 ,C and it has 2een 1ound that +B, has only pro ided S.*'# 1acility at its head o11ice not to all the authori:ed dealers dealin$ with 1orei$n exchan$e in their 2ranches. #o sa e the precious time o1 the presti$ious 1or ,C in their Central 2ranches inside the country. TO AAOI6 CUSTOM#R 6#3#CTION Durin$ my time period that * spent in 1orei$n exchan$e department * 1ound in their re$isters that many 1irms were de1ectin$ means those who were 1irst loyal to +B, 1or the operations o1 openin$ ,C were not iewed in the list 1or a lon$er period o1 time. #o a oid their de1ection whether it is partial or 1ull relationship should 2e created 2y $i in$ a phone call. *t will ma"e 2etterment in +B, >s $oodwill and their pro1its. R#6UC# COMPL#?IT> IN A6AANC#S .hile pro idin$ ad ances the mechanism that is opted 2y +B, is to pro ide 1acility and renew it a1ter a year. *n the renewal whole procedure is 1ollowed a$ain that was opted at the start. ,ot o1 documentation $et not only employee con1use 2ut e en customer a oid that. #his can 2e the reason 1or +B, ha in$ low ratio o1 ad ances as compared to their deposits. So +B, should 1inish the method o1 renewal 2ut "eep chec"in$ the per1ormance o1 the or$ani:ation 2y ha in$ relationship. INT#RNATIONAL #?PANSION
%7' Internship Report
+B, has internationali:ed already and is per1ormin$ ery well in its a2road 2ranches. But +B, has internationali:ed to 1ew countries. #hey ha e 2i$ mar"ets ahead o1 them and with their wor"in$ acti ity will $et simpler with that. *n the 1orm o1 European countries and mar"ets li"e C%*-) where there is lot o1 acti ity related to 2an"s they can expand their chains. MO"IL# "AN,ING &o2ile 2an"in$ is actually a 2an"in$ that you can do yoursel1. ?ou can per1orm arious acti ities o1 2an" throu$h your mo2ile phones or throu$h your computers. .ith ;ust a call you can trans1er money 1rom an account to another and similarly other acti ities. *t is a concept that is $ainin$ importance throu$hout .orld Pa"istan is no exception. +B, should start wor"in$ on this concept to maintain their existence in the chan$in$ 2an"in$ sector. A6OPT PRO0ACTIA# APPROACH +B, mana$ement should adopt proacti e to sur i e in this sector. .hat * ha e o2ser ed is that +B, mana$ement is ha in$ reacti e approach means that they react to the situation that their competitors ha e created. *n case o1 consumer 1inancin$ +B, has respond 2y ha in$ same schemes that ha e 2een already launched 2y their competiti e e.$. car 1inancin$ and housin$ schemes are responded 2ut ery late 2y the +B,. +B, should try 1or new inno ati e ideas rather than mo in$ on the same trac" that their competiti e are doin$. #6UCAT# ACCOUNT HOL6#RS .hether the account holders are new or existin$ 2an" should pro ide them with the initial in1ormation a2out how to deposit and withdraw money 1rom the 2an". *t will 2e 2ene1icial 1or the 2an" in a way that lot o1 time could 2e sa ed a1terwards with that approach. PROMOTIONAL ACTIAIT> Ban" must let potential customers "now that all attractions 1or 2an"in$ exist. #his is done 2y ad ertisin$ on #ele ision and o2tainin$ Press co era$e, in con;unction with direct mail, window displays, pamphlet in 2ranches and in appropriate other locations 8such as hostels, shops etc.9 and includin$ lea1lets in statement o1 accounts sent to existin$ customers in the hope that they will tell potential customers a2out the ser ices pro ided 2y our 2an". R#LATIONSHIP #he 2an" should "eep on 1illin$ the $ap 2etween customer and the 2an" throu$h consumer 1riendly attitude and e11icient ser ices. #hey should wor" on 2uildin$ relationship with the customers. "USIN#SS PARTI#S
+B, should start thin"in$ a2out relationship with the parties that are willin$ to do the 2usiness with the 2an". Business in the 1orm o1 deposits 1or a lon$er period o1 time. (ather than loo"in$ 1or small parties whose purpose is ;ust to deposit in the mornin$ and ha e withdrawal in the e enin$ should 2e discoura$ed. ,ot o1 time in wor" acti ity can 2e sa ed 2y ha in$ 1ew 2ut $ood parties rather than ha in$ hu$e accounts o1 small amount and specially those are not 1or the purpose o1 lon$ term deposits. CHANG# ATTITU6# Employees inside the 2ranches should chan$e their attitude toward the customer. *t has 2een o2ser ed that customer do not $et the same warm welcome and importance that he wants and he is 2een pro ided 2y other emer$in$ 2an"s li"e ),'),)% and +-*O- B)-@. #hey should start thin"in$ a2out chan$in$ their attitude 1rom now. &erfor/an!e A11raisa- M Co/1ensation Employee appraisal is an maGor part goo! an! effective >10$ "t consist of systematic eval#ation of an in!ivi!#al with respect to his personal traits an! characteristics, his on Gob performance an! his potential for !evelopment$ "n .nite Bank /imite! there is no appraisal system exists$ +o relationship has so far been establishe! between appraisal an! staff motivation$ +o weight is assigne! to appraisal in making !ecisions on promotions, postings, etc$ Compensation is a necessary thing for employees satisfaction$ :n! UB" has not any proper compensation plan when ever management !eci!e to give bon#s or extra salary to employees it is followe!$ So there sho#l! be proper compensation plan$ &rod !t Marketing This is age of competition an! every organi ation is facing har! competition from not only !omestic organi ation b#t also from the international organi ations !#e to globali ation$ 5#e to this competition the marketing !epartment plays a vital role in the s#ccess of the organi ation$ UB" sho#l! have a strong marketing !epartment like many other private banks have, for the p#blicity of their pro!#cts an! make well inform the c#stomers all the services provi!e! by the bank an! to con!#ct !etaile! market researches to fin! o#t new opport#nities, nee!s of the c#stomers an! make comprehensive plans to capitali e those opport#nities$ A11earan!e %6% Internship Report
Physical appearance of the location an! insi!e the b#il!ing also matters$ "t helps a lot to attract the c#stomer$ Some branches of UB" are very attractive b#t all the branches sho#l! be well !resse!$ C.arge Card .B/ sho#l! provi!e the facility of charge car! as well$ Re!overy 4a!i-ity "t sho#l! also provi!e the facility of recovering notes payable an! acco#nts payable$
'OME IM&ORTA#T ABBREVIATIO#' >* 1>N TACs C51 CE* C*5 C51 0"Cs P/S :Ic 55 0T TT "BC "BC: *BC *BC: *5 :T0 5: 5P /C S/C ./C BI/ A*B C=A C, A = " >ea! *ffice 1egional >ea! N#arter Term Ainance Certificates Call 5eposit 1eceipts Chief Exec#tive *fficer Certificate *f 5eposit Call 5eposit 1eceipt 0onthly "ncome Certificates Profit = /oss Sharing acco#nt 5eman! 5raft 0ail Transfer Telegraphic Transfer "nwar! Bills Collection "nwar! Bills Collection :!vice *#twar! Bills Collection *#twar! Bills Collection :!vice *ver 5raft :#to Teller 0achine 5elivery against :!vance 5elivery against Payment /etter of Cre!it Sight /etter of Cre!it .sance /etter of Cre!it Bill of /a!ing Aree *n Boar! Cost = Areight Cost, Areight = "ns#rance %67 Internship Report
BIE E9Aorm 2"B*1 /"B*1 T9Bills P"B +"5A +"CA C:5 1C:5 5:C S0E C"B /P1 BBAS TC C10
Bill of Exchange Export Aorm 2arachi "nter Bank *ffer 1ate ;in Pak 1s$< /on!on "nter Bank *ffer 1ate ;in foreign c#rrency< Treas#ry Bills Pakistan "nvestment bon!s ;common bon!s< +on "nterest 5eman! Ainance +on "nterest Cash Ainance Cre!it :!ministration 5epartment 1egional Cre!it :!ministration 5epartment 5isb#rsement :#thori ation Certificate Small = 0e!i#m Enterprises Central "nformation B#rea# ;of SBP< /eaves Prior to 1etirement BorrowerBs Basic Aact Sheet Tra!e Checking Cre!it 1isk 0anagement

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EXECUTIVE SUMMARY

Introd !tion To Banking

COMMERCIA" BA#$I#% I# &A$I'TA#(

FUNCTIONS OF A CO((ERCIA) BANK

' Internship Report

RO)) OF CO((ERCIA) BANK IN THE ECONO(Y DE-E)O.(ENT OF .AKISTAN/

HE"& O4 'TATE BA#$ O4 &A$I'TA# I# ACHIEVI#% MO#ETARY &UB"I'HE'(

INTRODUCTION OF UNITED BANK )I(ITED

&ersona-i?ed 'ervi!e and 3yna/i! A11roa!.

REA3Y 4OR )1'T CE#TURY

following: &ROVI#CE AI'E RE%IO# A""OCATIO#

&rovin!eBArea S nd 5o .un0a" 5o 5o 5o N1F. Ba*u+h stan A2ad Kash% r

'MA"" BU'I#E'' 'CHEME

UB" COM&UTER TRAI#I#% I#'TITUTE

'TA44 CO""E%E' O4 UB"

UB" '&ORT' COM&"EX

%' Internship Report

Organi?ation C.art at Bran!. "eve-

:rea 0anager ;:$0<

Branch 0anager or :rea *perational 0anager

Treas#ry = Capital 0arket

>#man 1eso#rce 0gt$

Chairman His Highness Shaikh Nahayan Mabarak Al Nahayan

Deputy Chairman Sir Mohammed Anwar Per e! O"#

President & CEO Mr$ A%i& R$ "okhari

Director Mr$ Omar 'iad (aa&ar Al Askari

Director Mr$ Ahmad *a+ar Director Mr$ 'ameer Mohammed Cho)drey

Director Mr$ (a ed Sadi+ Malik

Director Mr$ M$ Tahsin ,han I+bal

Mr$ Aly Shah Barrister-at-law, Company Secretary

Mr$ A%i& R$ "okhari President and C.E.O

Mr$ M$A$ Mannan Group Executi e Consumer!Commercial Ban"

Mr$ Na)man H)ssain Group Operations & #echnolo$y %ead

Mr$ Risha Mohyeddin Group Executi e #reasury & Capital &ar"ets

Mr$ Aameer ,ara-hiwalla Group C'O

Mr$ Aya! H$ Shamsi Group Executi e %uman (esources

Mr$ M)hammad #.a!)ddin Group )udit & *nspection %ead

Mr$ Tari+ Mohar Group Business Support ! Collections %ead

Mr$ Mohammad Asghar Group Commercial Ban" %ead

Mr$ Ali Sameer Group %ead S)&

7' Internship Report

MISSION O3 CORPORAT# "AN,ING

50HUMAN R#SOURC# 6PARTM#NT

5isciplinary :ction Cases

"eaves &rior to Retire/ent C"&RD

80 AU6IT AN6 INSP#CTION

+B, C(ED*# C)(D

The U"L Credi% Card :$$Ma!ay Mein Raho$

Low "alan-e Trans&er Ra%e ; Sa e big %ime

proof<, in case of Self Employe! :pplicants

yo#r monthly net take home income is 1s$ 7-,333

6' Internship Report

#o 3o! /ents ReF ired

"ow 3own 1ay/ent > st 1:J

&roKe!ted Rate Of 1rofit

5aily Profits on yo#r !aily balance >igher ret#rns on higher balances

.erm 2inance Pro8ect 2inance .hese inc#ude,

eneral !tility Services

RU&EE TRAVE""ER CHE@UE

(' Internship Report

7< 6< bank$ (< -< 4< ,< )< '<

Individ a- C rrent A!!o nt

&"' :CC.+T +$ XXXXXXXXXXXXXXX