Internship Report

Internship Report on UBL (1194)

G.T Road Br. Gujrat

Department of Management Sciences

University of Gujrat City Campus

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DEDICATION

I dedicate my work to My Parents, My

Beloved Teachers and to all of my
Friends, because without their help I cant
complete my Report.

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ACKNOWLEDGEMENT

First of all, I thank my respected teachers for

providing me the knowledge about Commerce
Courses and also for the opportunity to complete
my Internship Program in UBL to enhance my
practical work and knowledge about the banking
sector of Pakistan. I am also thankful to the
followings because without their support, I would not
be able to achieve this practical work and also
knowledge.

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PREFACE

MBA (Master in Business Administration) is a program in which we

studied about commerce and business. In Pakistan the banking sectors
are the basic pillars in which we easily understand and get the practical
experience. Master in Business Administration (MBA) gives us an
opportunity to do the practical work about business in the shape of
internship. The Internship program is an important part of MBA to give us
the opportunity for practical experience. Without practical work, our
knowledge of theoretical courses remains incomplete. The most
important thing in an Internship program is to that the student spend their
time in a true manner and with the spirit to learn practical work of
theoretical study.
The Internship Report of my Six weeks practical training at UNITED
BANK LIMITED (UBL) G.T. Road Br. Gujrat. In the Internship Report I
tried to give details about the United Bank Limited, function and the
working of different departments of the bank.

Ayaan Gul

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Table of Contents

1.

Executive Summary.7

2.

Introduction to the Report8

Purpose of Report ...8
Scope of Study ....8
Limitations of Study .8
Methodology of Study ..9

3.

Objective of Studying the Organization..9

4.

History of Banking .......10

5.

Overview of the Organization

History ....12
Nature of the Organization .....13
Business Volume ..14
Honor & Success Stories..16
Product & Service Line .17
PEST Analysis ...19
Contribution of Organization 22

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6.

Organizational structure
Organization Hierarchy ... 23
Number of Employees .... 24
Main Offices.......25
Introduction of all department..25
Comments on the Organization structure..30

7.

Internee Work
Brief Introduction of internees office/ branch......30
Details of Supervisor....33
Weekly Timetable................33
Summary46

8.

Conclusions of the report

Summary of Conclusions46
SWOT.50

9.

Recommendations for improvement 53

10.

References. ..56

11.

Annexes 58

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EXECUTIVE SUMMARY
The purpose of internship is to have the practical knowledge about the
organizational working. For this purpose I was select the banking sector. This is an
internship report shows the different sections and products which perform by UBL. It
starts with the introduction about Bank sector followed by the introduction of UBL. It
gives a brief report about all the financial products of UBL.
The report also shows the different features of those products. All the Services
which are provided by UBL has also been explained and discussed along with the
weaknesses and strengths of the organization. I learn from my internship is how to deal
and satisfied to a customer and different practical things which are helpful for my future.
I tried my best to cover & explore each and every aspect of UBL with in my 6 weeks
internship.
This report described the internal framework of the working of the UBL Business.
In the report I also discuss about the policies of the organization and objectives. The
report shows the PESTL and SWOT analysis of the UBL. It also includes some
recommendations/suggestions for UBL.

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5. Main Body of Report:

5.1 INTRODUCTION OF REPORT:
The Students which are studying in MBA, the courses of Master levels Degree in
Business Administration need to do an internship program for Six Weeks. It is an
essential academic requirement. This internship repost is followed by comprehensive
report writing, required to submit to the supervisor of University of Gujrat City Campus. I
have done my internship in United Bank Limited G.T. Road Br. Gujrat (1194).

Purpose of Report:
The purpose of my internship is to work in real situation and learn how to work in
banking sector by doing. The report objectives are:
1. To analyze banking operations i.e. financial analysis, operational analysis.
2. To develop concrete recommendations.
3. To improve my report writing skills.

Scope of Study:
The study shows the banking operations in daily routine. Its an attempt, with all of its
limitations, to collect financial data and general statistics of the bank has been made.
The purpose of my study is to get the experience in the practical environment in the
bank.
Limitations:
I admired that in my report I only attempts those aspects, which are closely relevant to
my study. The other things which are equally important but not have direct relation with
the conclusion of my study about the organization have been ignored.

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Methodology:
I was used both primary and secondary source of data for the compilation of the report.
Primary Source:
Personal Observation.
Discussion with the customer/Account Holders.
Discussion with the Bank Personals.
Secondary Source:

Internet.
Newspapers and Journals.
Internship reports which are available in the UBL library.
Annual Reports.
Manuals of the Bank.

Objective of the study:

The main objectives of my study in UBL are to enhance my management skills. I got
many skills regarding to my field (Finance).

To complete my internship program and prepare the internship report.

To improve my personal skills in the professional environment.
To identify my own strengths and weaknesses which I ever faced in the practical

environment.
Increase my knowledge and know how about the banking sector.
Discover that how to treat and satisfied the customer.
Analyze the banking operation i.e. operational analysis, financial analysis by

doing practical work and applying the theoretical study.

Able to move and set in the real organization.
To learn how to survive in the large organizations.
To learn how to manage the time and also the importance of the time in the

practical life.
To identify and describe the toughness of the job.

History:
Definition of Bank:
Bank is a pipeline through which currency moves into and out of cirulation.
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The word Bank is derived from Middle French the word Banque, from Old Italian Banca
and from Old German Banc. Bank is a financial institution that has a licensed to deal
with the money and substitutes by accepting time value of money and demand deposits,
investing securities and making loans.
History of Banking:
The History of banking begins with the first prototype banks of merchants in the ancient
world, which made grain loans to traders and farmers who carried between cities. This
began around 2000 BC in Babylonia and Assyria. The lenders in Greece exchange the
money and valuable things so these lenders worked as financial agent. India and
Ancient China also shows the evidence of money lending activity. The development in
banking sector spread from northern Italy through Europe with the important innovations
took place in Amsterdam during the Dutch Republic in the 17 thcentury and London in
18th century. In order to create confidence among the people, steps were taken to
regulate the banking organization for that purpose a conference held in Nuremberg in
1548. In the conference it was decided that a bank should be set up by the
state/government, which flows the banking organization and techniques as well. The
first central bank was established in Geneva in 1578 and Bank of England was formed
in 1694. The right and responsibility for issuing the notes is now in the hands of central
bank of each country. Bank of China and Bank of Japan also established in Asia. In an
agreement signed in 1857 all Asian territories agree to BOE oversee and control all
macro banking aspect in their territories and the agreement is still stand. With the
development in the telecommunication and computing sector made major effects on the
banking operations and the size of banks are dramatically increase and geographic
spread. The bank corrupts due to the financial crisis of 2007-08. Some of the world
largest banks were financially failed because of that crisis.

History of Banking in Pakistan:

After the partition the Pakistan had 2 commercial banks out of 38, which were named as
the Habib Bank Limited and Australia Bank of India included. The deposits in Pakistani
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Banks were Rs.880 million whereas Rs.198 million was advance after the partition.
Quaid Azam Muhammad Ali Jinnah who is the first Governor General of Pakistan
ordered to establish the State Bank of Pakistan. The State Bank of Pakistan that is the
central Bank of Pakistan was establishing in 1948. The National Bank of Pakistan was
established in 1949 which is the first commercial Bank of Country and in the end of the
1973 the Pakistan had 14 commercial banks in the country with the named were:

NATIONAL BANK OF PAKISTAN

HABIB BANK LIMITED
HABIB BANL (OVERSEAS) LIMITED
UNITED BANK LIMITED (UBL)
MUSLIM COMMERCIAL BANK LIMITED (MCB)
COMMERCE BANK LIMITED
AUSTRALIA BANK LIMITED
STANDARD BANK LIMITED
BANK OF BAHAWALPUR LIMITED
PREMIER BANK LIMITED
PAK BANK LIMITED
LAHORE COMMERCIAL BANK LIMITED
SARHAD BANK LIMITED
PUNJAB PROVINCIAL CO-OPERATIVE BANK LIMITED

The duties of the State Bank were increased after the State Bank of Pakistan Act 1956
was introduced. According to the State Bank of Pakistan Act 1965 Section 37(2A) the
Banks must have paid-up capital and reserve is not less than 5 Lac. Rupee and it will be
determined by the SBP. The Government of Pakistan took a step and nationalized the
all banks to minimize the control of few hands in banking. But in 1990 the Government
again denationalized 2 Banks (Allied Bank of Pakistan Limited and Muslim Commercial
Bank of Pakistan Limited). After the privatization of banking, the performance of these
banks was well. Now only State Bank of Pakistan and National Bank of Pakistan are
nationalized.

5.2Overview of the Organization:

5.2.1History of UBL:
The UBL was register on 24th July 1959 and the first official branch of UBL started its
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work on 7th November 1959 on I.I Chandigarh road Karachi and Mr. Chandigarh was the
first Chairman of the UBL who died in 1960. After his death Mr.Habib.I.Rehmat took
charge. The UBL had Rs.20 Million authorized capital which was rose up to Rs.112
Million. In June 1960 the UBL opened their branches in:

Karachi
Dacca
Lahore
Lyallpur
Chittagong and Narayanganj

And in 1963, United Bank Ltd. became the first Pakistani bank which had been a branch
in London on William Street, United Kingdom. The UBL continues their operations as a
private bank before 31st December 1973 after that it became a national bank after
nationalization in the era of Zulifqar Ali Bhutto. The UBL adopted significant changes in
its structure, functions and service provided. These changes can reflect of our
developing economy.
The Government again privatized the UBL on 19 October 2002 and sold its 51 percent
shares to Consortium of Abu Dhabi Group (UAE) and Bestway Holding Ltd. (UK). The
sales agreement of the transferring the shares was done between the Minister Altaf M.
Saleem and Sheikh Nahayan Mubarak Al Nahayan at a ceremony. This event is known
as a New Journey for UBL in the UBL History.
On 8th May 2004, Atif Bukhari became a new Chief Executive Officer of UBL and
provides their services more than seven years. After that the UBL declared as CEO. He
was also the member of the HBL Committee. During 46 years of experience, the UBL
achieved impressive growth and development. UBL has dynamic role in the Pakistan
banking industry.

Registered Office:
th

Head Office:

13 Floor, UBL Building,

State Life Building No.1,

Jinnah Avenue, Blue Area,

I.I. Chandigarh Road,

Islamabad

Karachi-74000, Pakistan

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Share Registrar:
M/s. THK Associates (Pvt.) Limited
Ground Floor, State Life Building No.3,
Dr. Ziauddin Ahmed Road,
UAN No. 021-111-000-322
Fax No. 021-3565559

5.2.2Nature of the Organization:

Two financially strong groups (The Abu Dhabi Group and The Best way Group) are now
the owners of the UBL. United Bank Ltd is acted as a centralized bank because the
Deputy Chairman of the UBL is Sir Mohammad Anwar Pervaiz, a person is the leading
role of Best way Group.
In 1986, the UBL had been made a significant change in their domestic operations of
the bank and reformed and decentralized its operations on the basis of provinces. The
provincial headquarters were established at Lahore, Karachi, Quetta and Peshawar in
order to meet the needs of sanctioning loans and other facilities to the trade, agriculture
and industry of each province.
United Bank Ltd is a commercial bank. Commercial Banks have constituted the
important pillar of the intuitional credit in the Pakistans economy. UBL has an identity in
the sector of banking because of its reputation in national and international banking
services. UBL has its vision, mission and core values which create distinction between
UBL and other Banks those who provide their services in Pakistan.
Vision Statement:
To be a world class bank dedicated to excellence, and to surpass the highest
expectations of our customers and all other stakeholders.
Mission Statement:

Set the highest industry standard for quality, across all areas of operation, on a

sustained basis.
Optimize people, process and technology to deliver the best possible financial
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solution to our customer.

Become the most sought after investment.
Be recognized as the employer choice.

Core Values:

Honesty & Integrity

Commitment & Dedication
Fairness & Meritocracy
Teamwork & Collaborative spirit
Humility & Mutual respect
Caring & Socially responsible

According to provisions Act of BCO, 1962 Section 7 the UBL have performs the
following functions:

Agency Services
General Utility Services
Hajj related Services
Providing specialized services to customer
Underwriting of loans raised by the government or public bodies and trading by
corporation etc.

5.2.3Business Volume:
United Bank Ltd. is one of the oldest organizations in banking sector and it provides
their services in the remotest areas in the country. United Bank Ltd. increases their
branches from 1238 to 1623 in 1983. Now UBL has 1300 branches in Pakistan & 15 in
around the world in which includes USA, UAE, Qatar, Bahrain, UK and Republic of
Yemen etc. The United Bank Ltd. established its first overseas branch in United
Kingdom in 1963 on William Street.

Rupees in Millions

Year
Total Assets

2008
620,707,389

2009
640,421,911

2010
726,422,551

2011
807,204,788

2012
980,210,41
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Deposits
Advances

429,267,898
377,945,366

Reserves
17,256,061
Investments 115,057,090

503,831,672
362,079,596
21,167,954
137,734,578

567,611,258
341,510,412
24,241,798
231,717,214

633,889,416

5
755,264,26

341,139,519

4
385,834,26

12,241,798
301,106,877

1
12,241,798
381,245,90
3

Analysis (%)
Total Assets

100

103

113

111

121

Deposits

100

117.36999

112.6589

111.6767

119.1476

Advances

100

95.8021

94.31915

99.8914

113.1016

122.66968
119.70977

114.5212
168.2346

50.49872
129.9458

100
126.6148

Reserves
100
Investments 100

Honor and Success Stories:

First of all the UBL has honors that it is one of the Oldest Commercial Bank in
Pakistan.
The UBL gain 3.5 million customer with AA+/A-1+ credit rating, deposits of
Rs.567 billion and advances of Rs.341 billion at 31 st December 2010.
The United Bank Ltd. achieved the Largest Bank Award 3 continuously years
from 2002-2005.
The UBL achieved the Award of Corporate Finance Transaction of the year 20042005.
In 2009, UBL-UAE remitted 220 million USD to Pakistan. UBL established a UBL
sport complex which shows the interest of UBL in Sports.
In 2010, UBL launches First Premium Debit Card in Collaboration with Master
Card.
In 2011, UBL started Tezraftaar Account Services, which enables a Non Resident
Pakistani (NRP) living in a foreign country to open an account in any UBL branch
in Pakistan. After a while, the Tezraftar launched the Pardes Card, a prepaid
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remittance card.
UBL launched Silah Mila in 2011, acknowledges and rewards customers who
have shown great performance in their loan repayment with other banks.
UBL, Indus Motor Company & UBL insurer enter into an alliance offering an
exclusive financing deal on all Toyota cars in 2013.
UBL provides kinds of incentives, rewards & bonuses to their employees to
create a strong relationship & commitment with their employees.
UBL has the honor that organization has more than 1200 online branches which
facilitates their customers who are the valuable all the time for the UBL.
UBL launched the Wataan Card with the comporting of Government for the flood
victims and distributed 50000 cards in the flood affected people for the relieving.
UBL has honor that the leading organization which bring the innovation in the
technology of banking sector. For the daily operations the UBL used the software
of the Sun-Guard company which provides latest software to UBL.

5.2.4Product/Service lines:
UBL provides a number of the products and services launched in the banking sector
from individual person to partner accounts. The UBL where you come first provides the
excellent services to its customer. The following are products/Services providing by the
UBL.
1. Priority Banking:
UBL introduced the Signature to meet the highest expectations of its high
potential, high net-worth clients. The customers have exclusive benefits in the
signature in the shape of free services & value added facilities.
2. Retail Assets Products:
Agricultural:
UBL offers the agriculture based financial products in which the financing is done
on all the seasonal crops in Pakistan. The financing is also available on the NonFarming in which livestock and fisheries financing are included.
Small Loans:
UBL also provides loans to individuals who wish to setup their own small
business under the Small Business Scheme. These loans are available on the
easy terms and conditions and the main purpose of these loans is to reduce the
unemployment in Pakistan.
3. Card Products:
UBL Wiz:
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UBL Wiz card is the first Pakistans ever prepaid VISA Debit card that gives the
security and benefits of an ATM and the Debit card is used in Pakistan and allover the world. The customer used Wiz card for the online shopping as well. UBL
creates the Wiz ACCA debit card with the partnership of the Associates of
Chartered Certified Accountants, UK.
UBL Mega Wallet:
UBL offers the UBL Mega Wallet Card in which the customers will get the ranks &
surprising gifts after every time to withdraw the amount or conduct transactions.
UBL Credit Card:
There are a number of the Credit cards that offers by the United Bank Limited
UBL Galleria
UBL PSO Auto Credit Card
UBL Platinum
UBL Silah Mila
4. Deposit Products:
The UBL provides a number of Deposits products whether you are an individual
interested in opening the saving or current account, or business maintains
account. The UBL has a large range of the deposit products which includes:
UBL Business Partner
UBL Business Partner Plus
UBL Rupee Transaction Account
UBL UniFlex
UBL Unisaver
UBL Profit-Certificate of Deposit
UBL UniZar Foreign Currency Savings Account
UBL UniZar Foreign Currency Current Account
UBL UniZar Foreign Currency Term Deposits Receipts
UBL FCY UniFlex
UBL Regular Term Deposit Receipts
UBL Basic Banking Account
UBL First Minor Saving Account
eTransaction (Current)
Additional Services and Information
5. Consumer Loans:
UBL Address Home Loan Facility:
UBL provides the Home loan facility for its customer to build their own home and
achieve their dream world. The Home is a basic necessity of human being
therefore the United Bank Ltd. gives loans to its customer on very easy terms
and conditions.
UBL Silah Mila:
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UBL introduced UBL Silha Mila for those customers who maintain good credit
history with any bank in Pakistan. These customers are being offered instant
rewards & rate breaks upon qualifying for UBL consumer products.
UBL Drive:
UBL offers the auto loan for its customers to drive away in their own car with the
down payment of minimum 20% and to top that with the low monthly installment.
6. Complementary Services:
Insurance Certificate
UBL Net Banking
UBL e-Statement

5.2.5PEST Analysis:
Today is the world of competition everyone wants to get maximum benefit and profit. In
the banking sector, UBL must need to describe its challenges come from the external
environment. Three things are necessary for the organizations marketing environment.
1. Internal environment in which customer, staff, office technology, wages etc are
includes.
2. The Micro environment in which external customers, agents & suppliers etc are
includes.
3. The Macro environment which is the most important factor those can affect on
the organization and it is based on Political, Social, Economical, Technological
factors. It is also known as PEST Analysis.
4. Political/Legal Factors:
The Political factors have huge influence upon the business regulation, consumer
spending power & other business in any country. Political factors represent the general
environment which is related to the Government rules and regulations. In 1974, when all
businesses

and

commercial

banks

in which

UBL

are
included

were

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nationalized in the country as a Government policy.

Banks in which UBL includes are strongly affected by the changing policies, rules &
regulations. This environment is setup by the Government and regulatory agencies that
set the limit for every business. These laws bring new opportunity for the business.
Factors:
Political Instability in Pakistan
Competition among the Bank
Tax policies are not stable

Economics Factors:
Economical factors have direct influence on the businesses in any country and it refers
that how resources are being distributed & used within environment. UBL set the targets
of its customers which are using the banks products: whether they pay the wages of
their employees, selling and buying the goods, paying their Taxes or taking loans for the
personal usage. It is very important for every organization to meet the customers
expectations through the economical short & long term analysis and provide the
services in the best way otherwise the organization cant achieve their goals. UBL
needs to watch & analyze following points
Factors:

Interest Rate
Exchange Rate
Saving Rate
Inflation Rate
Cost of living
Level of per capital income
GDP Level
Employment Rate and so on.

Social & Cultural Factors:

The social & cultural influences the businesses vary from country to country but have a
huge impact on the organizations. These are based upon the norms, beliefs, myths and
values of the society. UBL targets the consumers (low /middle /high income) by
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introducing the products. For example, it targets the middle income consumer by
introducing consumer products like Agricultural loan/Visa Card and Balance Transfer
Facility (BTF) and house loan/car loan products were introduced for high income
consumers. Some of the following factors include:
Factors:

Dominant Religion
Age of the population
Attitude toward the work
Attitude toward the using of the foreign products
Role of Men and Women in the Society

Technological Factors:
Technology plays a vital role in any business therefore UBL adopt the every new
technology which is available in the market to compete the other organizations. The
UBL used the software which named as SYMBOL for its banking system and its
installed in their 1300 branches in Pakistan. Due to introduction of SYMBOL, UBL had
to change its existing accounting and procedure system acquaint with the new system.
UBL has always seeking & adopting in the new technology.
Technological innovations have played the most dramatic role in the shaping the lives of
the people. The rate of change of technology impacts on the rate of change of economy.
Today technology is major driver of the globalization.

5.2.6Contribution of Organization toward economic development:

UBL becomes the one of the leading banks in very short period of time and take
advantage through its technology to other older & competitors banks. UBL established
the first overseas branch so it became the first bank whose start the overseas banking
in Pakistan. UBL has also plan to play its dynamic role in the overall development of the
country. The UBL is well equipped with the latest professional experience &
technologies to future with determination and confidence and with its high aim. UBL

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contribute its services from the daily operational banking to the Sports by the
establishing UBL sports complex.
UBL established the staff colleges at the Karachi, Lahore and Rawalpindi. These staff
colleges trained the employees to meet the consumer requirements & also the
organization. UBL, is the leading organization to use the computer technology in the
Banking Sector therefore UBL setup the most modern facilities at Muzaffarabad, Azad
Kashmir & Shiekhupura for the imparting training to the educated youth under the
Governments Computer Literacy program.

5.3Organizational Structure:
5.3.1UBL Hierarchical Chart:
Chairman

Deputy

Board of Directors

President/ CEO

SEVP

EVP

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VP

AVP

OG1

Technical

Non-Clerical

Staff

Staff

O.G 2

O.G 3

Messenger

Dispatch

Board of Director:

Rider etc..

Name

Designation

Shaikh Nahyan Mubark Al Nahyan

Chairman

Sir Mohammed Anwar Pervez, OBE, Hpk

Deputy Chairman

Mr. Atif R. Bokhari

President & CEO

Mr. Omar Ziad Jaafar Al. Askari

Director

Mr. Zameer Mohammed Choudrey

Director

Mr. Seerat Asghar

Director

Mr. Rana Assad Amin

Director

Mr. Amin Uddin

Director

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Mr. Arshad Ahmad Mir

Director

Mr. Aqeel Ahmed Nasir

SEVP/Company Sectary &Chief legal

Counsel

Mr. Ameer Karachiwalla

SEVP/Group Chief Financial Officer

5.3.2Number of Employees:
There are three different kinds of employees works in UBL
Permanent
Contractual/ Temporary
Out Sourced

Permanent

9520

Temporary

12

Out Sourced

5522

Total Staff Strength

15054

5.3.3Main Offices:
UBL have the main offices in the following cities:

Azad Kashmir
Bahawalpur
Faisalabad
Gujranwala
Hyderabad
Islamabad
Jhelum
Karachi Central
Karachi South
Karachi North
Lahore East
Lahore West
Mardan
Multan
Peshawar
Quetta
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Rawalpindi
Sahiwal
Sargodha
Sialkot
Sukkur

5.3.4Introduction of all Departments:

Accounts Department:
Accounts Department is known as the backbone in every organization. It plays a vital
role in the banking sector to perform the different functions. In UBL the accounts are
prepared on the computer as well as manual. There are a number of books which are
prepared in UBL and with the help of these books the accountant prepares the Monthly,
Quarterly and Semi-annually & Annually. But now most of the branches of UBL are
doing work online. For each and every transaction-taking place in the bank vouchers
are prepared and through these voucher contra entries are passed under different
heads.

Functions of Accounts Department:

To update the General Ledger

Prepare the Income Statement
Prepare the Balance Sheet
Prepare & maintain of vouchers
Prepare the Statement of Foreign Currency

Type of Accounts Maintain in UBL:

There are number of Accounts that are maintains and offered for customer by the UBL.
The following are the types of the accounts and sub types.
a. Current Account:
UBL Business Partner
UBL BBA
UBL Business Partner Plus
e-Transaction
b. Saving Account:
Uni Saver Account
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 Uni Saver Plus Account

UBL Rupee Transaction Account
UBL UniFlex Account
UBL First Minor PLS Account
c. Foreign Currency Account
EURO
POUND
USD
UAE Dirham
Saudi Riyal
Foreign currency accounts are also available in the current and saving accounts.
Cash Department:
The cash department works under the Accountant department and in cash department
both deposits and withdrawals go side by side. The cash department performs its job on
computers. This department prepares and maintains the following books, ledgers &
sheets:

Cheque Book
Cash Balance Book
Cash paid voucher sheet
Cash received voucher sheet

Bill Department:
The Bill department basically collects the bills, which come in bank for collection. There
are two main heads of bills.
1. Outward Bills for Collection (OBC):
The condition under Outward Bills for Collection is that the customer must have
his account in the branch. This branch forwards the cheque with schedule or
covering letter to that branch on which bill is drawn.
2. Inward Bills for Collection (IBC):
These bills come to branch for payments so branch has to verify these cheques,
pay orders, drafts and call deposits etc. The party account must be opened in

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that branch which sends it to paying branch. The responsibility under IBCs of the
branch is to verify all the bills within three days.
Clearing Department:
The clearing department is helpful for both bank & the customers in saving of time
currency involvement & labor. This department welcomes the cheques & other
negotiable instruments drawn from branches of other banks.
Procedure for clearing:
All banks in which UBL includes are the member of SBP and have an account in SBP.
The SBP clearing house, through which branches forward and receive, clearing
cheques, with a schedule, conducts clearing. The clerk of forwarding branch prepares
the schedule and vouchers of all the clearing cheque, which he received on that day
and sends these cheques to the checking officer. Checking officer passes these
cheques and vouchers by his initials, endorsement stamp and branch special crossing
stamp.
Remittance Department:
The remittance department deals and transfer of money or equivalent to money from
one branch to another branch to Bank, it has become an easier method both for client
and banker to transfer their money from one branch to another within or outer city
branch.
Modes of Remittance:
UBL, uses following types for transfers of money:

Demand Draft (DD)

Pay Order (PO)
Mail Transfer (MT)
Tez Raftaar (TR)

Demand Draft:

A bank draft is an order instrument issued for payment of a certain sum of money to a
certain person. There are three parties involved:
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Drawer: Issuing Bank.

Drawee: The bank on which the draft is drawn.
Payee: The name of person to whom the payment is to be made.
There are two types of demand draft, which are as follows
a. DD Issued
b. DD Payable

Payment Order (PO):

It is an instrument drawn by a banker on himself Implicit in a payment order is an
undertaking on the part of the banker to pay, a certain sum of money, on the
presentation of the instrument. The payment orders are generally issued for anyone of
the following practical purposes:
1. To facilitate all locally payable expenses on account of a bank for the reason
that such payments are not executed through cheques.
2. For the sake of inland and foreign remittances in case where the beneficiaries
do not maintain account with the bank.
3. For all local payments under instructions of the customers for sundry purposes
like payment of insurance premium, payments to third parties, club bills, rent and taxes
etc.
The following contains stepwise procedural prescriptions pertaining to the issuance and
payment of payment order.
Mail Transfer (MT):
Sometimes a constituent of a bank wants to transfer funds from one account to another
or a non-constituent wishes to remit funds in a particular account maintained at some
place with a branch of the bank or when the accounts are transferred from one branch
to another branch, such amounts/balances are remitted by means of mail transfer. The
procedure for issuance of a mail transfer is the same as discussed for drafts except that
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the applicant is provided with a memorandum for money received from him for the
issuance of a mail transfer on a particular branch of the bank.
Tez Raftaar (TR):
Free Doorstep Remittances With-in the country or from abroad, UBL offers the most
efficient and price competitive service. With our large network of branches, we are
poised to offer you service almost at your door step.
UBL's new remittance service, TezRaftaar offers all overseas Pakistanis the fastest and
the most convenient delivery of their money to their beneficiaries in Pakistan. Best of
all,TezRaftaar is completely cost free and is available at all UBL branches along
the Bank's Network in the Middle East, UK and US.

5.3.5Comments on the organization Structure:

The UBL follows the upward to downward communication system thats why decision is
taken by the UBL Chairman & Board of Directors. The decision is divides into the task,
work packages and work units. These projects or decisions are frequently distributed as
like a pipeline. The board of directors takes decisions and divides into the first-line
managers. UBL organization structure is time saving for the organization. Though the
top to bottom structure have much more accuracy and have proper control on the
organization and convenient for achieving the organizational desired goals. The
organization maintains the employees rules and regulation through the proper guideline
and training.

5.4Internees Work:
5.4.1Brief Introduction of Branch:
I had been done my internship under the University of Gujrat in UBL main branch G.T.
road Gujrat (1194). It is situated on the main road of Gujrat. So it is the busiest branch
of UBL in Gujrat. During the internship I gained the experience and worked in the OBC,
Customer Service, AOF and Clearing.
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Number of Employees:
United Bank Limited G.T. Road Branch Gujrat has 12 staff members and the staff of the
branch is very corporative, well educated and experienced thats why the performance
of the branch is remarkable. The following are the current members with their
designation with qualification and experience .

Designation

Name

Qualification

Experience

Branch Manager

Syed Farrukh Saghir

MBA

25 Years

Customer

Shehzad Mehmood

B.com

30 Years

Service Manager
Customer

Shoaib Iqbal

MBA

3 Years

Service Representative
Cashier

Haris Majeed

MBA

2 Years

Cashier

Haroon Aqbal

B.com

3 Year

Guard

Ejaz Ahmed

Metric

-------

Office Boy

Haji Ahmed

Middle

-------

The training has been given to every new employee through proper channel. New
employees of bank have been sent to the Islamabad for training in Staff College of UBL.
The training duration is two or three month. Every new employee must get the training
to knowhow the basic operation of banking field and for the dealing of their customers.
Instead of two or three month training some time employees have sent to Regional
Head Office for one or two days seminar to up to date new technology and knowledge
in international market. Employees often sent to head office to know the new and
necessary banking operations. If any new product is introduced by bank the employees
will also send for training.
Basic information of the branch
Workload:
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Branch timing starts from 9:00 am to 5:30 pm (Monday to Friday) and 9:00 am to 1:30
pm on Saturday for customer but Bank staff often goes late because the burden of the
workload. After the bank timing the staff must complete the daily vouchers transaction
and made entries on the net system and then counted cash, after matching physical
and system balance put the cash in safe. The banking staff should finish their work on
daily basis. The employees have 15 days leave annually along with the allowances so
that the staff enjoys the holidays without any tension.
Promotion system:
The promotion of the employees depends upon their performance. The promotion
system in the UBL based upon the Grade system. If an employee gets the A Grade he
will get the 20% increment on its salary because the A Grade show that the employee
perform continuously perfect. Grade B will get the 10% increment and so on. The
employees promotion is also bases of the experiences. If an employee continuously
works in the bank he will get the promotion reward from the head office.
Salary structure:
The salary structure depend upon the experience, knowledge and most important on
the basis of your performance because the promotion of the employees based on
employees annual performance. The average salary of staff is within fifty thousand. But
most of the staff received the salary in the range of 50000 to 70000.
Accounts:
UBL G.T road branch has total no of accounts are 5334 with 800 billion of deposit. The
detail of these accounts is given bellow.

Current Account

2060

Term Deposit Receipt

1753

Foreign Account

446

Saving Account

475

1. UBL used Unibank (oracle) software for its operation

2. Landing interest rate are 20% and profit rate on saving account 5%
3. Provide different types of financing as below
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3.1. Running finance of 500,000 just at your I.D and this called cash line
3.2. Provide mortgage loan on you stock and t get loan stock should be of 50% to 70
% of total loan.
3.3. In business line it provide above 500,000 to run your business in initial stages.

5.4.2 Details of Supervisors :

Mr. Shehzad Mahmood is a person under I had been completed my internship and he
provide me great support during my internship. He has 30 years of experience in
banking sector so under his supervising I taught many things which are helpful in my
future. He is humble and supportive person and always help me in this period other
staff member and branch manager also supervise and support me in completing
internship.

5.4.3Weekly timetables:
1. First week:
Account opening:
The first week of my internship my supervisor told me the detailed information about
account opening. It is a basic need of a customer who wants to save his money in UBL.
The process of accounting opening is by fulfilling the account opening form which
contains a number of accounts. The customer choose the account which is suitable for
him, date of opening, introducers name and address, special instruction if any,
information about zakkat deduction and mode of delivery of cheque book, Debit card
and other facilities. The filled form is submitted in bank, the bank admits the signature of
the applicant and verifies the introducers signature.UBL opens following these accounts

Current Account
Saving Account
Foreign Currency Account

Detail of branch Accounts

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Current Account
Saving Account
Foreign Account
Term Deposit Receipt

2060
1753
475
44

Specimen Signature Card:

This card contains account number, picture of the account holder, title of the account
and the specimen signatures of the account holder and thumbs signatures of both
hands for verification. When this form is submitted in bank, the bank officer admits the
signature of the applicant and keeps this specimen card in record. After the submission
no one can withdraw the amount only the account holder withdraw his amount.
Cheque book requisition slip:
Bank issues new Cheque book to customer on the request of the customer. When slip
is submitted the bank as per instruction of account holder debited the account or if pays
in cash. Bank issues new Cheque book to customer on the request of the customer.
Customer can make request for new Cheque book in three main cases:
Newly Opened Account
Finishes of previous cheque book
Lost or Theft previous cheque book
a. Opening of an Individual Account:
Following documents must attach with form for opening of an individual account.
Attested photocopy of CNIC/ Passport of individual.
If the person is illiterate then three photographs are attached with the form.
In case of salaried person attested copy of service card or any other acceptable
evidence of service, but not limited to a certificate from employer.
b. Opening of Joint Account:
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All above required document are needed

The box of special instruction must be filled that either only one partner signature is
sufficient to run the account or all partner signatures is required.

c. Opening of an sole proprietorship account

In case of sole proprietorship the following documents are needed:
The Application for opening an account on the official letter head of the sole
proprietorship.
Sales Tax Registration Certificate/ National Tax Number.
List of official authorized to operate the account and their specimen.
Evidence of membership of trade organization/ chamber of commerce etc.
(Whenever Applicable)
d. Account opening of a Minor:
In the case of account being opened and operated under the name of a minor (Age
Below 18 years) the word minor must added with the title of account, the particulars of
account in the account application form. CNIC of father/Guardian along with form B of
minor attached with the form.
UBL G.T. Road Brach received money in following accounts:

UBL Business Partner (CDA)

UBL Business Partner Plus (CDA)
UBL BBA (CDA)
eTransaction (CDA)
UniSaver (PLS A/c)
UniSaver Plus (PLS A/c)
UBL Rupee Transactional Account (PLS A/c)
UBL UniFlex (PLS A/c)
UBL First Minor PLS Account
Foreign Currency Accounts (,$,, AED,SAR)
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Current deposit (UBL business partner):

Current deposit account is usually open for the businesses. In the Current Deposit
Account the organization deposit and withdraw the money several times in a day
without any bank charges. This type of account is free from any service charges and
also there is no interest paid by the bank. In this type of account frequently transaction
are occur and no limit to bound the account holder for deposit or withdrawal.
PLS Saving Account:
PLS saving account is basically created for the individuals who wants get some profit on
deposit after sometime. Its choice when to keep deposit in secured saving account.
PLS Saving account has a limitation on withdrawal of deposit, only two times in month
can withdrawal from account. In PLS account the zakat is deducted at 2.5% and Tax at
10% on profit paid.
Terms & Conditions:
The account opening person knows the terms and conditions which are given bellow:
The application for the opening of account is submitted by the customer to the
prescribed branch.
Customer can deposit money by deposit slip.
Customer cant withdraw more than his/her balance.
The branch is responsible to supply the statement of account after 3 months.
2. Second week:

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Cash department:
Cash department is the most sensitive department of any bank for daily operation and
without the permission of the cash officer; no one can enter in this department. G.T
Road branch deals in all cash relevant to the daily operation. G.T road branch most of
its work is done through the computers because it is totally online. It performs following
works in its daily life.

Received cash
Cash Payments
Maintain the record of paid cheques
Deposit receipt record
Maintain record of bills received
Maintain Closing balance

Cash paid Procedure:

A procedure in which the cashier paid the cash to customer against the issuing of
cheque and no payment is done without cheque. The customer filled the cheque and
then cashier inspect the following things in cheque manually:

Date and Signature

Cross Cutting
Amount is Figures & words
One signature on the below right corner of the cheque
Two signature on the back side of the cheque
Drawees A/c Title

If the cheque is valid in all respects then the cashier feed some inputs in the computer,
so the cash balance is updated. The cashier easily sees the balance of the customer
and if the cheque amount is more than his balance or signature is mismatched cheque
will be return. After the transaction the detail of notes is mentioned on the backside of
the cheque and stamped the cash received by the cashier. The cashier at the same
time maintains the Cash voucher received record sheet.
Cash Received Procedure:

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The process of cash received starts from filling the paying-in-slip (Deposit Slip)
available in the bank by the customer, giving the related details of the transaction.
This paying-in-slip contains the Account number, date, and title of a/c, particulars,
amount in words & figures being deposited and details of the cash. The depositor
signs the on the right below of the voucher and mention his name and CNIC number
on the Deposit. The Deposit slip serves as a voucher to update to computerized
transaction ledger. The transaction ledger is only updated by Deposit slip and
Cheque. The cashier is responsible to receive the deposit slip and provide the cash
to the depositor. The cashier check the necessary details like the depositor account
balance, his signature and tallies the cash amount with the amount mentioned in the
voucher. If the amount doesnt tally with the voucher amount then cashier reject the
deposit slip and no entry is given in the computer.
After the completion of the process cashier returned one part of slip is returned
to the customer and other is given to the computer operator. A very important check
is that the dates mentioned into the two documents must be the same.
3. Third week:
Clearing Department
In the third week of my internship I learned about clearing department and that
department of a bank collects and pays the cash to other bank. SBP has a clearing
house in which the representatives of all banks for settlement of the cheques and other
financial instruments. Clearing system is helpful for the time the time consuming in
perspective of Bank as well as customer. For bank, following are requirement of being a
member of clearing house.
It is a place where representatives of all bank of the city get together and settle

the payment and receipts of cheques drawn on each others

It must be scheduled bank i.e. it is registered by State bank of Pakistan
50 cheques per day must be drawn on it for the continuously three months
It must have account with State bank of Pakistan
Sufficient balance according to requirement of State bank of Pakistan must be in
account of that bank
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Procedure for Clearing Cheques and Instruments:

UBL is a member of State Bank of Pakistan & has an account with SBP. The
clearinghouse of SBP, through which branches forward and receive, clearing cheques,
with a schedule, conducts clearing. The clerk of forwarding branch prepares the
schedule and vouchers of all the clearing cheque, which he received on that day and
sends these cheques to the checking officer. Checking officer passes these cheques
and vouchers by his initials, endorsement stamp and branch special crossing stamp.
Clerk posts the contra entries of these vouchers in the clearing register. At every day at
about 9:05 a.m. Representative of all local banks are in clearing house of SBP, to
receive and forward the cheques.
Function of Clearing Department:
To accept transfer delivery and clearing cheques from the customer of branch
and arrange for their collection.
To arrange the payment of cheques drawn on the branch & given for collection to
any other branch of UBL or any other member or sub member of the local
clearing house
To collect amount of cheques drawn on member or sub member of local clearing
house, sent for collection by UBL branches not represented at the local clearing
house.
4. Fourth Week:
Remittance/ Transfer Funds Department:
Remittance is transfer of funds from one branch to another branch of same bank and in
my fourth week I had been work and learn about the remittance department. A
remittance is important service provided by the bank to the customer and also for the
non-customers. Bank charge some service charges against the transferring money from
one place to another so it is another source of income for the bank. In the remittance
department I learnt the follow things about remittance.
a. Transfer within the branch
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b. Transfer money from one branch to another.

c. Transfer the money from one bank to another bank in a same city.
d. Transfer the money from one branch to another bank in different cities.
Mode of Remittances
Demand draft (DD)
Telegraphic Transfer (TT)
Mail Transfer (MT)
UniRemote (Immediate Transfer)
Foreign transfer
DEMAND DRAFT (DD):
A Demand draft is an instrument issued for the payment of certain amount to the certain
person. Three parties are involved in this process.
Drawer: issuing Bank.
Drawee: the bank on which the draft is drawn.
Payee: name of the person to whom the payment is to be made.
Procedure for issuance of demand draft
Fill up the form containing following columns

Applicant's Name
Applicants Address
Applicants Signature
Payees Name
Name of Drawee Branch
Date
Amount in figures & words

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Charges on DD:
The bank deducts different types of charges from the applicant on issuance of DD,
including:

Central excise duty

Commission
Tax
Postage charges

Telegraphic Transfer and Mail Transfer (TT):

It is just type of cashier cheque. The main difference is that it is not drawn on the
specified branch. It can be drawn on any branch of the same bank. The paying bank
verifies the signature and after the verification the payment has been made.
UniRemote:
It is an online facility of depositing cash to any account in UBL. With on-line banking,
you are connected to the complete network of UBL all over Pakistan. UBL charged
charges are Rs 200 for cash withdrawal and Rs100 for cash deposit.
Mail Transfer (MT):
Sometimes a constituent of a bank wants to transfer funds from one account to another
or a non-constituent wishes to remit funds in a particular account maintained at some
place with a branch of the bank or when the accounts are transferred from one branch
to another branch, such amounts/balances are remitted by means of mail transfer. The
procedure for issuance of a mail transfer is the same as discussed for drafts except that
the applicant is provided with a memorandum for money received from him for the
issuance of a mail transfer on a particular branch of the bank. The
payee must be an account holder (customer) of the drawee branch.

Page | 40

5. Fifth Week:
Accounts Department:
The account department at UBL G.T. Road Branch where I had been done my
internship, accounts related work is mostly done on online but also manually, but now
the most work is done online at compute. Different statement of bank are prepared here
on monthly, quarterly, semi annually, and yearly bases of financial statement are
prepared here. Voucher system is the basic of this account department because its
keep the record of every transaction which took place in the bank. And with the help of
voucher it different entries are then passed in their individual heads account.
Functions of Account Department
Accounting department perform the following functions
Prepare and maintain the voucher
Updated the general ledger
Prepare different types of statement
Vouchers:
Vouchers are used for each and every transaction that is made in bank. The officer in
account department arranges the vouchers according to their heads.
There are two types of vouchers:
1. Debit vouchers
2. Credit vouchers
These two vouchers are further classified into three types:
a. Cash vouchers
b. Clearing vouchers
c. Transfer vouchers
These vouchers are used for all the daily transactions cash, transfer and clearing. A
sheet is prepared on which all the vouchers, passed during any one working day are

Page | 41

consolidated and summarized. This sheet is called supplementary sheet. It provides

help in preparing Cash Book.
Debit Supplementary Sheet
In which all debit cash voucher, clearing voucher, transfer voucher are included.
Credit Supplementary Sheet
In which all credit cash voucher, clearing vouchers, transfer vouchers are included.
Updating General Ledger
The balance is posted in each head of its ledger when vouchers are recorded in
cashbook. Income account & expenditure account are two main heads of general ledger
and the register is maintained for every head of account. All transaction in cash,
clearing, deposit, transfer, withdrawal of cash, foreign exchange, advances are took
place through ledgers. Account department prepare and update the following general
ledger and other account books.
a)
b)
c)
d)
e)
f)
g)
h)

Daily general ledger for expenses

Daily general ledger for income
Monthly general ledger for Assets
Monthly general ledger of liability
Daily general ledger of zonal expenses
Daly general ledger of audit expenses
Daily general ledger of regional expenses
Daily general ledger of inspection expenses

The format of the entire above ledger is approximately same. General ledger tells about
A/C No., description, previous Balance, Dr. Amount, Cr. amount and running balance.

Preparation of Different Statements:

Accounts department prepares these statements,
Page | 42

a) General Ledger
b) Income Statement
c) Balance Sheet
d) Statement of Foreign Currency
At branch General Ledger is prepared on daily basis but all the others statements
prepared on monthly basis.
6. Sixth Week:
Advance department:
In sixth week I learned the advance work. Advance is the amount which is given by
payeer to payee on promise to return it on some future date, and rate of interest is fixed
on it. So in banking sector the advance is the promise that the borrowed amount is paid
back in future in installment plus fixed rate of interest on it. The advance is given to
person by pledging some security with banks like land with equal or extended amount
pledge with bank as security for advance
Types of Advances
Demand Finance
Cash Finance
Overdraft Finance
Demand finance:
Demand finance is that type of advance in which bank made contract with its customer
that in future I will give you contracted amount for you need at some fixed rate. For this
bank take security which is 100% equal or more value of the advance money. It may be
in shape of stock, land or other financial instrument. Suppose customer come for
advance of 5 million, in UBL, bank make contract with that customer that it will provide
you the amount in future when you need and UBL charged the interest rate of 15 to 20%
on providing of this advance from customer and take security of equal amount of
advance from customer for safety.
Cash finance:
Page | 43

In this it will given to those which have the short term need of cash like sole proprietor,
partnership company etc for meet the timely need of cash this advance UBL give only
those person on whom the bank has full confidence and they are the loyal customer of
bank. For this bank take security which have value of 50% or more than 50% of
advance. Interest rate charges base on type of security, UBL charge interest rate from
15 % to 20 %.
Over drafts:
Over draft is the advance in which bank allow the its loyal and most important customer
to get money even if the amount actual is not have in its account that is called the over
draft advance. In which bank give limit to its customer on current account to over draw
the amount from its actual amount of account. For this bank charge the interest or
charges on the amount that is actually over draw from account. Customer takes the full
advantages of over draw of money when he needed. And when it returns the money it
debits the account with amount of money.
Overdraft might be unsecured or secured overdraft. Unsecured is that in which rely
upon the personal security of the customer and in secured overdraft bank allow the
customer that he/she will overdraw the amount from its account after providing the
security to bank, security may be of Government or first class financial instrument.

5.4.11 Summary of learning

5.4.4 Summary of Learning:

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5.4.4.1 What skill and qualification you think that you have gained from the
internship:
Internship in UBL gives me a great opportunity to learn and for apply my theoretical
knowledge that I gained form MBA. I have only 6 weeks to complete and gain the
experience which is very short period of time for know how about the all functions of the
Bank. However in six weeks of my internship, I was work in different departments and
perform different types of tasks. The manager & staff members of the branch taught me
about the banking work. At my first day in branch, the branch manager introduced me
with all staff members of branch and also with the person who is my supervisor, Mr.
Shehzad Mehmood. He is very polite, kind full person and gives me a lot of information
about UBL and its functions. After the introduction I started my work properly.
First of all, I know how to deal with customer, gives satisfactory information about the
bank that he turn to UBL and provide them services at our best. After that I also get
knowledge of opening of accounts, the documentation which are required & other
procedure of account opening. As bank basic financial services which include loan,
deposit of customer, so in next step they teach me how to collect money from customer
& recorded it in ledger and provide the deposit slip to the customer. Clearing is my third
stage in seeking of the experience and in these days of banking it becomes the
important part of banking. I gained skill about the cheques which are not that branch
and it may be of other bank or other branch of same bank and I also got knowledge that
how to Make Demand Draft, Pay Order, and Telegraphic transfer and pass entries of it
in relevant register.
At the End of my internship I thankful to all staff member those whos help me to fulfil my
internship specially Mr. Shehzad Mehmood who is so corporative, he tried his best to
give knowledge in short time period so I got skill to deal to customer as quick as
possible and also know procedure to open account, got skill of clearing and outward
billing collection, also work with cashier.
5.4.4.2 What kind of responsibilities you have undertaken during the internship
period?
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I worked in account department, also work in deposit field they also teach me who to
deal with customer, and also did responsibility in clearing of cheques, demand draft pay
order.
In first week I work as who to open account of different types like Opening of an
Individual Account, Opening of Joint Account,Opening of an sole proprietorship account
and also to work which activities carry when close the account of customer.
In second week I worked in deposit department and got knowledge of receiving of
money in different account like Current deposit (UBL business partner), PLS term
deposit receipt, Special notice receipts, PLS saving account, and Current deposit and
know different rates at which bank give loan to its customer and businesses for their
financial needs. It aware me that which person required what type of account according
to its needs.
I also work in remittance department and got ability to handle the different modes of
remittance. Remittance modes include demand draft, Telegraphic Transfer (TT), Mail
Transfer (MT). who to fill the form ,complete name ,address, amount , branch name
where it send ,charges of its etc and in final make entries of remittance in remittance
register.
In next step I work in clearing of different financial instrument like cheques, its
procedure and function of clearing., I have learned how when your client give you
another bank or branch cheque and request to transfer that fund from that bank or
branch to its account. It work without involving cash through State Banks clearing
house or we can say in other that cheques which cannot be cash at the cash counter of
the bank.
I have also learned about account department and functions of account department..It is
department in which all records and activities of all days are recorded in general ledger.
It is the most important recording register of banking activities of all day of all individual
activities like cash deposit , and written of cheque and get deposit from account. in this
department also maintain the different register like clearing, demand draft order, pay
order .Account department also maintain voucher of different transaction which bank

Page | 46

made in whole day and record of it in its relevant register like deposit voucher and
credit voucher.
In last of my internship I work in advance department. In this period in teach who to
make loans like loan at demand in this loan provided to customer at its demand when it
needed, interest is charged according to set rate of loan annually. Loan are giving by
putting some security against loan like property, gold or some financial instrument have
worth equal of loan or exceed of it.
5.4.4.3 How do you think the internship will influence your future career plans?
I have future plan to join the banking field so I think the internship in UBL have great
influence in my future career because it increased my theoretical skills through the
practical work which is very helpful for me in future when joining bank. I know how to
deal with customer which will help me in future who to satisfy customer because all the
banks are focused on the customers therefore the customer satisfaction is the higher
priority in the banking. It taught me that how to treat and work in the practical life and
environment of banking sector. Banking sector are growing so lot of chances in this
sector to develop my future career. So in future as I learn some about banking so easy
for me to learn more quickly when join banking sector.
5.4.4.4 How do you think the internship activities that you carried out are
correlated with your classroom knowledge?
Yes, definitely the internship is correlated with our classroom knowledge. Basic
accounting is totally applying in the banking sector so its very helpful in our internship.
Different management theories and policies which were taught by our teacher not
similar, every manager has their own some policies or obey the policies developed by
top level .we read about sharing of knowledge, but in practical no such policies are
carried out by manager they only instruct according to top management policies, in
short some book knowledge are carried out but most of not.

6. Conclusion of the Report:

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6.1. Summary of Key Conclusion:

A Bank is like a society it serves should be dynamic as banking is about people
customers with their needs and opportunities and staff with skills, experience and
resources. UBL has shown dynamism since its inception and from the establishing of
the UBL there have been many changes in the structure, functions and the services
provided by the UBL. These changes have been taken because the changing
requirements of our developing economy as a whole and those of Industry, Commerce
and private Individuals.
UBL is full of experienced and professional traditional bank. As it perfectly suit the
environment, YOU attitude has helped UBL in capturing masses. In the private sector,
no doubt it is a fast growing bank, but here's something that's still unrealistic to the
policy makers. The line of unsatisfied customers is increasing, not because we are not
serving well, it's because customers are not understanding the YOU attitude right. Every
customer wants to make sure his work is done at the first convenience, but they are not
concerned about the responsibility with which every employee is working. We need to
put in some guidelines for customers, as they walk in.
Credit department is the most important department in every bank. Deposits and loan
sanctioning generates funds for bank. But proper care is not carry in giving of loan or
other financial assistance which cause loss to bank. There is no proper security and
poor investigation system is adopted by the bank of a person to whom loan is sanction.
So bank face a huge loss if individual and organization cant repay its loan. Most of
transactions of banks become bad debit. So manager required extra skill and
knowledge for it to perfectly deal this. The customer dealing in UBL is satisfactory but
sometimes the employees dont deal their customers because of huge stress with long
time working.
Their properly security system in branch, security cameras are installed but the security
guards are hired by the private company who are not properly trained to deal any
emergency so risk of robbery all time.
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6.2 SWOT Analysis:

STRENGTHS:

The UBL has stable growth in deposits since its emergence. UBL is the third
largest bank in Pakistan. So it is the trustworthy bank in Pakistan and outside

Pakistan. UBL have a deposit base of Rs.94883/- millions.

The loan facility provided by the bank is on sound basis. They have many checks
and documentation that secure their money after advancing. With their strategy

there are very less chances of non-recovery from the debtor.

The infrastructure of UBL is very good because of its 1300+ Domestic and 15
Overseas Branches they have very good infrastructure. UBL continually looks for

ways to become more efficient and to increase their profit margins.

UBL involves in both corporate and retail banking.
Another very important aspect of UBL that gives edge to other banks is its fast
service. Everything goes very quickly. Either you are looking for a loan, or you
want to deposit money or you want to pay your bills its service is so fast and

quick that they respond the customer very quickly.

From the sanctioning Loan & advances to the individuals and organizations UBL

gained financial strength as they are gaining.

UBL is providing a lot of services in different shapes to its customers like in case
of remittance UBL gives Click N Remit online service for its customers, if you
want a Debit card without having an account then you will use UBL Wiz card and

Money gram is using for the foreign currency transitioning.

The promotion criterion of employees is made up of passing the diploma

examination of Pakistan institute of bankers.

UBL has a good reputation in banking sector because of its quality management,
marketing, innovation in products and services.

WEAKNESSES:

UBL is centralized. So the authority is not delegated to branch level. Manager of

branch cant take initiative regarding different decisions such that for giving
finance.
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Promotion activity of UBL services is very low. Therefore the majority of people

are not well aware about the products of UBL.

UBL Management lacks innovation they introduce the same products that are

already existent in the market.

UBL offers very low salaries to its employees as compared to other private

banks.
In UBL there is low level of motivation in the employee of the bank.
UBL management has adopted reactive approach they respond with the market

situation very slow and are averse to take initiative before the problems arise.
In UBL there is lack of specialized skill because of job rotation policy of human
resource department. The bank should focus upon increasing its abilities on

individual service basis.

Administrative expenses are 51% of the markup revenue.

OPPORTUNITIES:

Mobile banking is a plan that has been started to find its roots in the banking

sector. So its a big opportunity for UBL to avail this chance at big level.
Another opportunity exists for expansion of UBL chains in the international arena,

in particular in Europe and Australia.

UBL should organize trade shows for the promotion of export and finance the
organizations those who wanted to internationalize and wanted to introduce their

product and services outside Pakistan.

Liberalization is a concept that is under discussion around the world as this is
going to be implementing by WTO in a few years to come. With this liberalization
many industries are expected to be open in Pakistan and with free trading lot of
trade activity is expected. So keeping in view these perspectives there is great

opportunity for UBL to be stronger.

An external opportunity exists in efforts to develop the social environment of local
communities and society in general by contribution inventive community-

involvement programs.
UBL needs to increase in its product range to meet the broader range of

customer needs and satisfaction.

.Government taking good decisions to promote IT in Pakistan so UBL has an
opportunity to improve in IT stock exchange is very explosive.
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THREATS:

The rapidly changing in technology environment in the banking sector and the
quick response from other banks to adopt these changes can be a threat for

UBL.
It is a difficult thing to identify that what customer really wants is a difficult as to
identify the customer perception and its behavior is complex procedure. So the

changing needs of the customer can be a threat for the UBL.

Changing governmental policies and instability in politics in Pakistan can be seen

as a threat for the banking sector.

The political influences have huge impact on the performance of the bank

because of the loans become bad debts due to influence.

New Banks like Sonahri Bank Ltd, Askari Bank Ltd and etc and their good
performance may cause loss of market shares of UBL. Competition can be the
greatest threat for the UBL.

7. Recommanditions:
Recommendations are considered to be the most important part of an internship report,
without suggestions the report is considered incomplete. This section of the report is
based on the previous sections i.e. review and analysis. Moreover, for bringing
suggestions, discussions have been conducted with the staff of UBL officers, who not
only provided the basis for recommendations and suggestions but also point out some
areas, where the change for the development is extreme important. Realizing the
importance of this section, efforts have been made to give possible recommendations,
which are categorized under the following headings.

Swift Mechanism:

Page | 51

SWIFT mechanism is gaining importance for the treatment of LC and UBL has only
provided SWIFT facility at its head office not to all the authorized dealers dealing with
foreign exchange in their branches. To save the precious time of the prestigious
customer and to avoid them from defection UBL should insert SWIFT mechanism for LC
in their Central branches inside the country.

To Avoid Customer Defection:

During my internship the time which I spent in foreign exchange department I found in
their registers that many firms were defecting means those who were first loyal to UBL
for the operations of opening LC but were not viewed in the list for a longer period of
time. To avoid their defection either it is partial or full relationship should be created by
giving a phone call. It will better for UBLs goodwill and their profits.

Reduce Complexity in Advances:

While providing advances the mechanism that is adopted by UBL is to provide facility
and renew it after a year. In the renewal whole procedure is followed again that was
opted at the start. Lot of documentation get not only employee confuse but even
customer avoid that. This can be the reason for UBL having low ratio of advance as
compared to their deposits. So UBL should finish the method of renewal but keep
checking the performance of the organization by having relationship.

International Expansion:
UBL already provide its services very well in abroad branches but UBL has
internationalized in few countries. UBL have big markets ahead of them and with their
branches around all over the world they can very easily access the people around the
world. In the form of European Countries and markets like CHINA where there is lot of
chance for UBL to expand their chains.

Mobile Banking:
Mobile banking is actually banking that you can do yourself. You can perform various
activities of bank through mobile phones or computers. Customer can transfer his/her
money from one account to another and similarly other activities from just a call. It is a
Page | 52

concept that is gaining importance throughout the World Pakistan is no exception. UBL
should start working on this concept to maintain their existence in the changing banking
sector.

Adopt Pro-Active Approach:

UBL management should adopt proactive approach rather than reactive approach to
survive in the banking sector. I have observed that UBL management is having reactive
approach means they react according to the situation that their competitors have
created. In case of consumer financing UBL has responded by having similar schemes
that have been already launched by their competitors e.g. Car financing and housing
schemes are responded but very late by the UBL. UBL should try for new innovative
ideas rather than moving on the same track that their competitors are doing.

Educate Account Holders:

Whether the account holders are new or existing bank should provide them with the
initial information about how to deposit and withdraw money from the bank. It will be
beneficial for the bank in a way that lot of time could be saved afterwards with that
approach.

Promotional Activity:
Bank must let potential customers know that all attractions for banking exist. This is
done by advertising on Television and obtaining Press coverage, in conjunction with
direct mail, window displays, pamphlet in branches and in appropriate other locations
(such as hostels, shops etc.) and including leaflets in statement of accounts sent to
existing customers in the hope that they will tell potential customers about the services
provided by our bank.

Relationships:
The bank should keep on filling the gap between customer and the bank through
consumer friendly attitude and efficient services. They should work on building
relationship with the customers.
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Change Attitude:
Employees inside the branches should change their attitude toward the customer. It has
been observed that customer do not get the same warm welcome and importance that
he wants and he is been provided by other emerging banks. They should start thinking
about changing their attitude from now.

Appearance:
Physical appearance of the location and inside the building also matters in the banking
sector because it helps a lot to attract the customer. Some branches of UBL are very
attractive but all the branches should be well dressed.

Charge Card:
UBL should also provide the facility of charge card as well.

Recovery Facility:
UBL should also provide the facility of recovering accounts payable and notes payable.

Bibliography:
www.ubldirect.com
Ernest Rauthschild. The History of Banking. Technology, September 12, 2013.
http://www.slideshare.net/ernestrauthschild/the-history-of-banking.
History of Banking in Pakistan - Essay - Azshetu. Accessed September 12,
2013.http://www.studymode.com/essays/History-Of-Banking-In-Pakistan660972.html.
State Bank of Pakistan. Wikipedia, the Free Encyclopedia, September 12,
2013. http://en.wikipedia.org/w/index.php?
title=State_Bank_of_Pakistan&oldid=569417591.
Bank. Wikipedia, the Free Encyclopedia, September 12, 2013.
http://en.wikipedia.org/w/index.php?title=Bank&oldid=572445052.
History of Banking. Wikipedia, the Free Encyclopedia, September 12, 2013.
http://en.wikipedia.org/w/index.php?title=History_of_banking&oldid=567862046.
United Bank Limited Pakistan. Wikipedia, the Free Encyclopedia, September
12,2013. http://en.wikipedia.org/w/index.php?
Page | 54

title=United_Bank_Limited_Pakistan&oldid=563590472.
HIERARCHY OF UNITED BANK LIMITED for United Bank Limited Aiou
Internship Report.Scribd. Accessed September12, 2013.
http://www.scribd.com/doc/34212059/50/HIERARCHY-OF-UNITED-BANKLIMITED
Board of Directors | UBL Fund Managers. Accessed September 12, 2013.
http://www.ublfunds.com.pk/individual/about/management-board/board-ofdirectors/.
United Bank Limited. Accessed September 12, 2013.
https://www.ubldirect.com/Corporate/index.aspx.
Download Free Project Reports: United Bank Limited and Banking in Pakistan.
Download Free Project Reports. Accessed September 12, 2013. http://downloadreports.blogspot.com/2009/11/kreport.html.
Pakistan Banks Association. Accessed September 12, 2013.
http://www.pakistanbanks.org/members/profiles/ubl_profile.html.
Journals and Newspapers.

Page | 55

Annexes

SOME IMPORTANT ABBREVIATIONS

RHQ

Regional Head Quarter

TFCs

Term Finance Certificates

CDR

Call Deposit Receipts

CEO

Chief Executive Officer

COD

Certificate Of Deposit

CDR

Call Deposit Receipt

MICs

Monthly Income Certificates

PLS A/c

Profit & Loss Sharing account

DD

Demand Draft

MT

Mail Transfer

TT

Telegraphic Transfer

IBC

Inward Bills Collection

IBCA

Inward Bills Collection Advice

Page | 56

OBC

Outward Bills Collection

OBCA

Outward Bills Collection Advice

OD

Over Draft

ATM

Auto Teller Machine

DA

Delivery against Advance

DP

Delivery against Payment

LC

Letter of Credit

SLC

Sight Letter of Credit

ULC

Usance Letter of Credit

B/L

Bill of Lading

FOB

Free On Board

B/E

Bill of Exchange

E-Form

Export Form

T-Bills

Treasury Bills

PIB

Pakistan Investment bonds

SME

Small & Medium Enterprises

CIB

Central Information Bureau

LPR

Leaves Prior to Retirement

TC

Trade Checking

CRM

Credit Risk Management

SEVP

Senior Executive Vice President

GDP

Gross Domestic Product

CRM

Customer Relationship Management

CBG

Corporate Banking Group

IPO

Initial Public Offerings

CDB

Central Data Base

(common bonds)

(of SBP)

Page | 57

CCD

Control and Compliance Department

PO

Pay Order

CSO

Customer Service Officer

NTN

National Tax Number

NAB

National Accountability Beauru

SDR

Security Deposit Receipt

CC

Cashiers Cheque

ATR

Asset Turnover Ratio

Page | 58