Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive adva

INTERNSHIP REPORT ONUNITEDS BANK LIMITED

Internship Report submitted to the Faculty of Master of Business Administration in Partial Fulfillment of the Requirements for the Degree of Master of business Administration.

Program & Session MBA (Finance)

UNIVERSITY OF GUJRATDate of Submission

Name of Program Coordinator ___________________Signature of Program

DEDICATION:

I dedicate this work of mineto myTeachers, My Parents and to all My Friends, who truly help and guide me in completing this project.

Preface:

With the changing world scenario, the need for effective and efficient managers has increased manifold. The organizations require managers with analytical and problem solving abilities enabling them to exploit the opportunities presented. Today, the most important pre-requisite for managers is to have well-developed communication skills so that they not only are able to communicate within the organizations but also with the groups outside the organization, customers, suppliers, government and the community.The development of these skills not only requires strong theoretical knowledge but also a practical experience. Although the six week internship program has not fully developed these abilities but it has at least given me a feel of the market. It has, to some extent, enabled me to see the relevance and applicability of various tools and theories of management. Moreover, this training has created an awareness of the various career opportunities available in the market as well as the tough competition we, the students of business administration, have to face in securing jobs.This report thus represents in a handy and systematic manner, the details of my internship program at UBL. I have tried to write this report using the most accurate and up-todate information and hope that it will give the reader a brief and meaningful idea about the organization.

Acknowledgment:

By the Grace of Almighty, the most Merciful, the most Beneficial, I'm today submitting my internship report, at the end of my first pragmatic experience and I'm glad to have it with UBL, where you come first, only if you're the customer. Thirst of learning is inside you, and whatever the environment, if you're willing to learn, you do. At UBL, I had a new, challenging, yet a perfect environment to learn. My parents' prayers and their teachings were always with me and hereby I will like to take this opportunity to show my gratitude to all those who made my internship an adventurous outwit.Here I am, from more professional and rather corporate environment of UBL main branch Lala Musa. I never knew what it all going to be. As I enter the branch, it took me a minute to realize that the person sitting in the half fortified walls is the manager. Maybe I was expecting him in a glass sheeted room. At a glance, I grasped the interesting personality of the manager and today at the end of my internship; hes one of the persons Ill always remember. Sir whatever I learnt from you is always going to be respected, no matter whatever business field I choose. Those tips are always in my memory bag. Despite of the most hectic schedule, Sir Ghulam Abbas helped me so much. I'm really grateful to you sir for clarifying my concepts and making me learn from your experience. Whatever I learnt from you will definitely help me in my upcoming study and the professional life ahead. Thank you so much for being so co-operative and so helpful every time.In the end, I'll like to thank all my other colleagues, Mr Mian Ijaz Ahmad, Mr. M.Saleem. and all my other fellow internees, here and in LalaMusa branch, for their unconditional support and help in making me learn in a good environment.

Table of ContentsTITLE PAGE

Dedication

Preface 2. Acknowledgement3. Table of contents4.Executive summery of the internship5.1 Introduction Purpose10The purpose to do the internship report10Scope11Objectives115.2OVERVIEW OF THE ORGANIZATION115.2.1BRIEF HISTORY135.2.2NATURE OF THE ORGANIZATION...135.2.4PRODUCT/SERVICE LINES15(1) ADVANCES15UBL Drive152.1- CURRENT ACCOUNT162.2 - SAVING ACCOUNT162.3 - FIXED OR TERM DEPOSITS17(3) REMITTANCE.....17

(4)MISCELLANEOUS.17

UBL Wallet VISA Launch184.3 - ONLINE BANKING194.4 - ATM20PEST analysis:20Political factors21ECONOMIC factors21SOCIAL-Cultural factors21TECHNOLOGICAL factors225.2.6 Contribution of an organization towordeconomic development..22

5.3.1Organizational Hierarchy Chart23Management Hierarchy235.3.2Number of Employees235.3.3MAIN OFFICES24HEAD OFFICE24REGIONAL HEAD QUARTERS24ORGANIZATIOAL STRUCTURE AT HEAD OFFICE LEVEL255.3.4.INTRODUCTION OF DERPARTMENT .25Consumer Banking25Human Resource Department25Leaves Prior to Retirement (LPR)26Finance Department26Marketing Department26Information Technology Department26Audit and Inspection26Agricultural Loans27Treasury & Capital Markets27Corporate Banking27Investment Group28Commercial Banking285.3.5 ...COMMENTS ON THE ORGANIZATONAL STRUCTURE295.4Internee Work295.4.1 Introduction of Branch295.4.2 Detail of Supervisor305.4.3 Weekly time table30Working activities during Internship311st Week312nd Week353rd Week364th Week385th Week406th Week415.4.4 Departments in United Bank Ltd LalaMusa branch:425.4.6 Summary of the learning455.4.6.1 Skills and Qualifications455.4.6.2 Responsibilities during Internship465.4.6.3 Influence on my Future Career475.4.6.4 Internship Activities are correlated with Classroom Knowledge476. CONCLUSION OF THE REPORT476.2General observations about the sector48STRENGTH48WEAKNESSES49OPPORTUNITIES50THREATS517.RECOMMENDATIONS518.REFFERENCE55

ANNEXURE A57HIERARCHAL STRUCTURE OF UBL AT57HEAD OFFICE LEVEL57HIERARCHAL STRUCTURE OF UBL AT BRANCH LEVEL58

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, Specialized Credit Institutions. The S.B.P. is the Central Bank if the country and was established on 1st July, 1948.On November 7th 1959 United Bank Limited appeared on the banking horizon in Pakistan and started operations with its first branch namely McLeod Road now I.I Chundrigar Road at Karachi. Today UBL has 1056 Domestic and 15 Overseas Branches.UBL was nationalized in 1973 but it is privatized in 2002 as Govt. handed over the management of UBL, the third largest party of the country, to the successful bidder -Consortium of Abu Dhabi Group (UAE) & Best way Holding Limited (UK) as they have purchased 51% shares and have elected H.H.Shaikh Nahayan al Mubarik as Chairman UBL. On May 18th 2004 Mr. Atif Bokhari was appointed as anew CEO of UBL.In Deposits department actual relationship is started with the bank , that relationship is in the form of deposits or the accounts that are opened in the bank. At UBL, customers can deposit in the form of current, saving, call, term and fixed deposits. Main difference between current and saving is of the profit that is provided only on saving account to the customer. Preparation of LC on behalf of importer for the exporters and its bank is the main activity that is perform in the department.With their step in the field of customer financing like house and car financing and their services of Hamah Rupee Traveler check, UBL Wallet (ATM card) and their online system of UBL-ONLINE it has been viewed that they will make tremendous achievement in the days to come. In my view UBL has faced some hard time but after its privatization and its response to the changes in sector they will achieve what their ultimate goal is. PART-1

INTRODUCTION, OVERVIEW OF ORGANIZATION AND ORGANIZATION: STRUCTURE:

5.1 INTRODUCTION:For the students of the Master of Business Administration at University of Gujrat there is essential to submit the internship report. It is first chapter of our report which tells the purpose of the study, scope and objectives. I did my internship requirement in United Bank branch Tanda. The experience to work in that bank was very good. I try my best to expand my knowledge and put my study experience in the banking field. Although time was to short but I try my best to learn up to the standard.

VISION STATEMENT:To provide quality services to itscustomers throughadoption of bestpractices and full exploitation of I.T advancement, culminating at a leading position amongst itspeer banks

UBL is "A World Class Bank Where You Come First"

MISSION STATEMENT:

"UBL Bank's team of committed professionals is dedicated to maintaining long term customer relationships through outstanding service and convenience."

Purpose: The purpose to do the internship report was to explore the learning of my practical field. The main purposes are: To know the banking operations. To improve the report writing skills. To gain the experience that will be helpful for me in the future. To apply the best methodology procedure. To know what sort of changes IT brings in managerial activities. Scope:As an internee in United Bank Ltd. the main focus of my study research was on general banking procedures in one of the branches of UBL. These operations include remittances, deposits, advances and foreign exchange. Similarly different aspects of overall of UBL are also covered in this report. So this study from the relevant department will help me in my practical and professional life. Objectives:The object of this report is to know the maximum working of the bank which includes: To objectively observe the operations of United Bank of Ltd. To make recommendations or implementation plans for the improvement of the Operations of the United Bank. To know who to deal with the customers. To know that who the companies works in the competitive environment. To learn the changing environment. To gain the knowledge this will be helpful for me in the professional field. To give the banking services to every individuals. To understand the customers needs and wants. To convince the people for more relationship. To run the business in the effective way and lower its cost. To create and manage the value in customers mind.5.2OVERVIEW OF THE ORGANIZATION:United bank was established in June 1959 and the company was registered on July 24, 1959. United Bank Limited started the operations on 7 November 1959 with its first branch namely McLeod Road now I.I Chundrigar Road at Karachi. On 9th November 1959 the Gazette of Pakistan notified and included UBL in its list of scheduled hanks operating in Pakistan.Some Key information about the UBL

Date EstablishedNovember 7, 1959President & CEOMr.Atif R. BokhariBranches 1079 domestic, 17 overseas branches, across the nation at 350+ online branchesEmployees 10,000 EmployeesRepresentative OfficeTehranAssociated CompanyOman United Exchange Company, MuscatOff shore Banking Unit Export Processing Zone, EPZ Branch. Karachi, PakistanHead OfficeState Life insurance Corp. Building # 1 I.I.Chundrigar Road, Karachi, Pakistan

Branches in Overseas: United States of America Qatar UAE United Kingdom Bahrain Republic of Yemen Zurich Off Shore banking Unit

5.2.1BRIEF HISTORY:United bank was established in June 1959 and the company was registered on July 24, 1959. United Bank Limited started the operations on 7 November 1959 with its first branch namely McLeod Road now I.I Chundrigar Road at Karachi. On 9th November 1959 the Gazette of Pakistan notified and included UBL in its list of scheduled banks operating in Pakistan. Today UBL has 1079 Domestic and 17 Overseas Branches.The Bank continued its operations as private banking company until 31st December 1973 when it was nationalized along with other banks operating in the country and other two Banks namely Pak Bank of former East Pakistan and Commerce Bank Limited were merged with UBL.On October 19th 2002, biggest event occurred in the history of UBL, when it was privatized. The government handed over the management of United Bank Limited, the third largest bank of the country, to the successful bidder - Consortium Of Abu Dhabi Group (UAE) & Best way Holding Limited (UK). Privatization Minister Altaf M. Saleem and Best way Holding, Sheikh Nahayan Mubarak Al Nahayan signed the sale agreement for the transfer of 51% shares at a ceremony. This event was declared as a "New Journey for UBL".On May 18th 2004, Mr. Atif Bokhari took over the charge as new Chief Executive Officer of United Bank Ltd from Amar Zafar Khan, who served UBL for more than seven years. In the view of highly impressive growth and development achieved during its 46 years of experience, UBL has come to be accepted as one of the most progressive and dynamic components of the banking industry in Pakistan.5.2.2NATURE OF THE ORGANIZATION:

United Bank Limited is one of the largest commercial bank in the country. The nature of the organization is public service-oriented. In the view of highly impressive growth and development achieved during its 46 years of experience, UBL has come to be accepted as one of the most progressive and dynamic components of the banking industry in Pakistan, A Bank, like the society it serves should be dynamic as banking is about people customers with their needs and opportunities and staff with skills, experience and resources.

Reward, Honors of UBL

The Deputy Chairman of the UBL is Sir Mohammad Anwar Pervaiz (OBE) who is the leading role of Best way Group. This group has started its business in England and emerges in the top ten large business entities of England. This group recently installed the Cement Plant of Pakistan in Tehsil Chowk Saidan Shah District Chakwal. Sir Mohammad Anwar Pervaiz got the following Awards in the owner of his business achievements: Order of British Empire (OBE) (1992) British Award Knight(1999) From British Queen Elizabeth Hilal-e-Pakistan (2000) Mir Khalil ur Rehman Husn-e-Karkardgi Award (2000) Best Businessman Of the Year (2001) Pakistan Life Time Achievement Award (2003) 5.2.4PRODUCT/SERVICE LINES:The bank provides its customer various product lines: to cater their need of investments and other social or business requirements. UBL offer the following product lines in term of ADVANCE DEPOSITS REMITTANCES MISCELLANEOUS (1) ADVANCES:"The lending function of the banking for the production purposes is called Advances".In banking sector advance is the promise that carries the repayment of the original amount plus an interest on the principal amount, extended as advance. The credit/advance is given on the base of the confidence/trust and on the belief that the customer will be able and willing to pay on the demand or at some future time. URL is expanding its Advances product portfolio to serve public financing needs better.UBL Drive:UBL Drive is not just a car loan; it's a financing facility. UBL Drive is a unique auto-financing product, which offers features, options and flexibility unmatched by any other bank.UBL Drive allows customers to drive away in their own car by making a down payment of just 10% and to top that with low monthly installment. UBL Drive offers the option to pay-off loan amount anytime after the first year of financing without incurring any extra charges (different financing rates will apply for this option).

(2) DEPOSITS:Deposits act as a backbone of bank. It is the lifeblood of every bank. These deposits are source of generating incomes for the bank and for the general public to meet the financial needs. The bank accepts the deposits at a low rate of interest and lends it at higher rate of interest, the difference between the lending and accepting rate is the source of income for the bank. Keeping in view the above factors UBL offers the following type of deposits. 2.1- CURRENT ACCOUNT:Current deposit is running deposit because, customer can withdraw deposited amount at any time, whenever he feels need. The customer can withdraw without any prior notice to the bank. The bank has to pay the cheque provided within the limits of the account balance. The main thing is that bank does not pay any kind of interest on current account. Actually this deposit is for the business purpose. The bank cannot invest the deposited amount under current account heading, because of the fear of withdrawal. Bank has to keep with it a higher reserve ratio to meet the needs of the current account holders.2.2 - SAVING ACCOUNT:Saving Account is an important source of funds for the bank. The purpose of this account is to attract the small saving of the general public. Normally workers, schoolboys and employees of the organizations use the saving account facility. UBL also provides this facility to the general public against a certain rate of interest. The new name of this account is now a day is PLS-Saving Account.UBL offers PLS Savings Account that can be opened with an initial deposit of Rs.10, 000. The share of profit is credited half-yearly to the PLS Saving accounts and is calculated on monthly balance. Depositors can withdraw their savings by presenting cheques at the particular branch of UBL or from any online UBL branch anywhere in Pakistan during banking hours.2.3 - FIXED OR TERM DEPOSITS:Fixed or Term deposits accounts are the major source of the capital for investment for the bank and cannot be withdrawn as in case of the current account. The amount deposited can be received back after a certain specified period of time. The rate of interest paid on fixed deposits is normally higher than saving deposits. The rate of interest also varies due to time period.

(3) REMITTANCE:Transfer of money or equivalent to money from one branch to another branch of the same bank is called remittance. Now it has become an easier and safer method both for the client and banker to transfer their money from one branch to another within the city or outside City. In case of remittances normally two banks are involved, are as under: Originating bank branch Responding bank branch3.1 - MODE OF REMITTANCES:United Bank Limited, uses following types for transfers of money:1. Demand Draft (DO)2. Pay Order (PO)3. Mail Transfer (MT)4. Telegraphic Transfer (TT)Demand Draft (DD):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: Drawer: Issuing Bank, Drawee: The bank, which the draft is drawn. Payee: The name of person to whom the payment is to be made.

(4) MISCELLANEOUS:4.1 - UBL CREDIT CARD:UBL Credit Cards, Pakistan's 1st Chip Credit Card, which guarantees customers both enjoyment and high value. It assures customers global acceptability in more than 22 million establishments worldwide in 130 countries and in more than 12, 000 outlets within Pakistan.This unique high tech CHIP guarantees customers security while conducting transactions within Pakistan and around the world. CHIP based credit cards have proven to be the most secure way of conducting credit card transactions globally. UBL Credit Card offers the following facilities 24 hours a day, 7 days a week. Complete access to customer card account online including card transactions and billing statements Chip Rewards Information. Pay UBL Card Bills. 4.2 -UBL WALLET:Moreover, UBL Wallet is now part of the 1 Link and VISA networks. These allow customers to use their UBL Wallet VISA across Pakistan at more than 925 ATMs displaying the 1 Link logo and at more than 900,000 ATMs in 150 countries. It is also acceptable on the MNET network of ATMs in Pakistan. UBL Wallet VISA Card will also be acceptable on all local VISA certified machines displaying the VISA Plus sign.UBL Wallet VISA Launch:After the success of 1st UBL Cards Electronic Festival, UBL announces with immense pleasure the 2nd UBL Cards Electronic Festival on 3rd and 4th June 2006 at Pearl Continental Hotel, Karachi. A large cross-section of respected brands from the electronic industry will come together under one roof to offer amazing discounts, deals & free offerings to valued credit card holders.The debit card facility is being offered in association with the Oryx and VISA networks, which mean that customer, can use his UBL Wallet VISA to conduct a debit transaction at any outlet in Pakistan that displays the ORIX or VISA logos. The Oryx network offers connectivity at more than 5,000 outlets across the country, whereas customers UBL Wallet VISA card is also acceptable at 22 million VISA merchant locations, local and international. UBL 200 plus ATMs are now VISA certified and are geared up to accept all International VISA Debit and Credit cards. Now UBL Credit card holders can do cash advances through our UBL ATMs as well. Facilities: UBL Wallet VISA gives facility of having up to 9 supplementary cards issued against one primary card. All supplementary cardholders will be able to conduct ATM/Debit transactions and will share the transaction limits of the primary card account. UBL Wallet allows three kinds of instant funds transfers through UBL ATMs from customer UBL account: Into any of customer UBL accounts Into any other UBLs account. Into any other participating 1 Link Bank (through the new UBL Inter Bank Funds Transfer facility) Enquire about the availability of funds or simply get a printout of customer account balance.4.3 - ONLINE BANKING:With UBL's state of the online banking, customers can access their account from more than 350 branches located in 71 cities across Pakistan. Now UBL enables customers to do all the following transactions in minutes through designated online branches. Salient features of online banking are: Cash Deposit Cheque Encashment Stop Payment Account Statement4.4 ATM:ATM is the abbreviation of Automated teller machine. ATM is the modern technology screen touch system. ATM functions on a PIN (Personal Identification Number) based system, ensuring complete security of customer transactions.

UNIQUE FEATURES: Your UBL PSO Auto Credit Card offers a host of unique features and exceptional benefits which makes it the most rewarding card in town. It offers unparalleled spending convenience as well as outstanding privileges and rewards. If fuel expenditure and car maintenance continue to burden your budget then UBL PSO Auto Credit Card is the perfect solution for you.

SMS Alerts Service Low Balance Transfer Rate 24 Hour Customer Service Cash Advance Supplementary Cards Buy Today, Pay Later Travel Accident Insurance5.2.5PEST ANALYSIS:PEST analysis:The factors that are beyond the controls of the Banks are called the PEST analysis. These are the macro environment factors that externally effects the organization that why they are also called the external factors. These are the political, economic, social and the technology factors. These are discussed below:Political factors: High taxation on banking industry. Political Interference and harassment. Governments policy on the economy Political stability Change in complexion and composition of Legislatures Privatization policy and deregulation. ECONOMIC factors: Labor costs Government Spending Business cycle stage (e.g. prosperity, recession, recovery) Exchange Rate Mechanism Inflation rate Interest rates |Government intervention in the free market Restrictions on Imports Efficiency of financial markets Economic growth rate Infrastructure quality Skill level of workforceSOCIAL-Cultural factors: Life Style Changes Adequate empowerment. Education Social culture (gender roles, etc.) Demographics Joint living and nuclear families Different Age Groups Entrepreneurial spirit Class structure Reach of the media to the populationTECHNOLOGICAL factors: Inadequate computer facilities. Technology's impact on product offering Lack of networking facilities ATM network Impact on cost structure5.2.6CONTRIBUTION OF ORGANIZATION TOWARD ECONOMIC DEVELOPMENT:Banks play an important role in the economic development of the country. If our banking system does not meet the economic requirement then how can play a vital role in our development?According to Professor Berton:"Banks are the guardian & distributor of money ".In this study, the primary objective is to analyze the financial position of the bank. Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets.5.3ORGANIZATIONAL STRUCTURE:The organizational structure of the organization is conventional, in 1986; the organizational structure of domestic operations of the bank was reformed and decentralized on the basis of provinces.5.3.1Organizational Hierarchy Chart:Management HierarchyPresident

Senior Executive Vice President (SEVP)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Assistant Vice President (AVP)

Officer Grade 1 (OG 1)

Officer Grade 2 (OG 2)

Officer Grade 3 (OG 3) Operational Staff

5.3.2Number of Employees:The numbers of employees working in UBL are Eight Thousand two hundred and fifty four (8254). The staff is quite efficient and qualified in its respective field. Most of them are professional degree holders. President 01 SEVP 06 EVP 13 SVP 36 VP 73 AVP 248 OG-1 906 OG-1I 2232 OG-111 47395.3.3MAIN OFFICES:HEAD OFFICE:State Life Insurance Corp.Building # 1, I.I.Chundrigar Road,Karachi, Pakistan.REGIONAL HEAD QUARTERS:The new segmentation of UBL branches on the basis of regions can be looked from the following: Karachi Hyderabad Multan Faisalabad Sialkot Islamabad Peshawar Quetta Azad KashmirORGANIZATIOAL STRUCTURE AT HEAD OFFICE LEVEL:UBL is one of the largest commercial bank. Organizational structure of UBL is comprised of different departments which are following and the Organ gram of UBL at head office level is shown in the ANNEXURE "A" and at branch level is shown in the ANNEXURE "B"

5.3.4INTRODUCTION OF ALL DEPARTMENTS AT HEAD OFFICE LEVEL:Consumer Banking:The consumer bank is divided on business lines based on product offerings. The product teams who encapsulate the futuristic features, the marketing team who has set a new trend in the banking industry through catchy taglines in Urdu and the sales teams, which have broken all sales records, lead these. Business is further supported by dedicated cross-functional teams comprising of credit, operations, collections and finance. The consumer bank's portfolio includes;UBL's visa credit card, which has the distinction of being the first, EMV chip-enabled card in South Asia.UBL Address & UBL drive the home and auto loan products respectively, which captured the bulk of the market share within the first few months of their launch.UBL cash line (running finance) and UBL business line (business finance) are the flexible credit line facilities with competitive mark ups.

Human Resource Department:This Department does all the activities related to Human Resources (HR) and Personnel Management like Job Analysis, Job Design, Job Description, Job Redesign, Job Specification, Recruitment (is the process of finding and attracting capable applicants for employment through Advertising, Employee Referrals, Private Placement Agencies etc.), Selection by written tests and interviews, Orientation, Training, Career Planning, Performance Appraisal (employee performance and accountability), Compensation and Protection, Union-Management Relations etc. Leaves Prior to Retirement (LPR):These are the leaves at the end of the job period (near to retirement) with pay. If some employee has the leaves in credit then he or she can avail that leaves at the end of his or her job. But maximum limit of LPR is one year. And after these leaves he or she will be automatically retired.Finance Department:The primary responsibility of Finance department is to provide reliable, consistent and timely information to management, shareholders, regulators and internal business groups to help them take appropriate decisions for improved performance of the bank.Marketing Department:Marketing department cover the areas related to the products and services provided to the customer and other promotional policies.Information Technology Department:Information Technology (IT) Department is related with all computer activities like it manage the Central Data Base (CDB) which is placed in Karachi Head Office of UBL, where all the daily transactions in all the branches of the country are up-dated on daily basis. The area of major focus for IT Department is the building of infrastructure for the launch of the consumer business.Audit and Inspection:The responsibility of this department is to audit and inspect the operations of the branches. This department checks whether the operations are compliance by the branches in a right way or not. The CCD (Control and Compliance Department) comes under this department. Audit has a support role to play by helping line management in achieving their business goals by ensuring that the operational risks are properly controlled and kept at minimum acceptable level.Agricultural Loans:UBL's agricultural loans on easy terms and conditions to small-scale land owning fanners boost the country's economy and yield greener harvests. UBL enables farmers to buy good quality seeds, fertilizers, pesticides and agricultural implements.Treasury & Capital Markets:This department is interacting with the market and dealing with Core Treasury Products in the money market and foreign exchange. The main purpose of the treasury department of any company is to maintain the liquidity for that company. It is the case with Banking Industry as well. The treasury departments have to manage the buffer stock (in terms of cash) of the bank and they have to maintain the liquidity for giving Advances to their customers.Treasury and Capital Markets (T&CM) contributed to over 65% of UBL total returns. This was due to Government Bond Trading, Equity Trading, Structured Products/Financial Engineering, Corporate Debt Trading, and Double-Count of revenues. Under the new management, the T&CM expedited the launch of Pakistan's first derivative money market product-the FRA (forward rate agreement) with Quetta Textile Mills Ltd.Corporate Banking:The main objective of the Corporate Banking is to look after the special customers who give huge amount of deposits or take higher amounts of Advances, because a Hub Branch can give the advance more than Rs. 200 million. And the party who needs a loan more than Rs. 200 Million they have to contact to the Corporate Branch of the UBL.There are 175 to 200 cases of Advances in the Hub Branch. But in the Corporate Branch there are hardly 15 to 20 cases of Advances due to so much high amount of Advances. And these types of customers are called corporate customers. These types of customers need special care and services as well.Investment Group:This department supports the Corporate Department. When a company wants to install a new project and require the finance from the bank then it is the responsibility of Investment Department to analyze the targets of the project and success or failure of the project. If it is feasible to loan that party then they pass the loan otherwise not. This is called the Project Finance. UBL's Investment Banking Group continues its leadership position in providing innovative and unique financial solution to its clients by anticipating their changing requirements and developing new products and services. UBL (Investment Banking Group) IBG offers full spectrum of services. Commercial Banking:Banking Companies Ordinance 1962 defines the term banking as following "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."The commercial banking has been developed into an important sector economy. UBL is a service-oriented organization, which performs numerous functions. The functions, which a commercial bank performs, can be divided into following categories. Basic Functions Agency Services Functions General Utility FunctionsThe commercial bank has 1000 plus branches which are used as distribution outlets for different business line. UBL also participated in commodity financing and continued its focus on Agriculture loans. Commercial banks have been the most effective mobilizes of savings and have been providing short-term requirements of working capitals to trade, commerce and industry.5.3.5COMMENTS ON THE ORGANIZATONAL STRUCTURE:Conventional organizational structure is being followed in the organization to cater the business needs. Although this structure takes more time in decision-making compared with the flatly structured organizational setup. However, due to maximum availability of higher-level management, decisions are made fairly fast and timely.

PART-11INTERNEES JOB

5.4 Internee Work: History of Bank:

The idea of banks began as long ago as 1,800 BC in Babylon. In those days moneylenders made loans to people. In Greece and Rome banks made loans and accepted deposits. They also changed money. (In the Bible Jesus famously drove the money changers out of the temple in Jerusalem).However with the collapse of the Roman Empire trade slumped and banks temporarily vanished. However banking began to revive again in the 12th and 13th centuries in the Italian towns of Florence and Genoa.In the 16th century a German family called the Fuggers from Augsburg became very important bankers.

5.4.1 Introduction of BranchI have done my internship in United Bank Tanda Branch. It is located on the Main road Tanda. I start my internship from the date 10th july, 2013, and the completion date of my internship is 19th august, 2013. This is the Branch hierarchy of United Bank Tanda Branch

Branch manager

Operational Manager

Advancing InchargePeonTellerGeneral Banking Officer

5.4.2 Detail of Supervisor:Ghulam Abbas is my supervisor who is the Operational Manager of the United Bank. He is very nice person.

5.4.3 Weekly time table:

WeeksDateWorking ActivitiesSupervisor

1st Week10-july-2013 to 16-july-2013Account Opening, types of accountBranch Manager Mr. Ghulam abbas

2nd Week16-july-2013 to 22-july-2013Types of AccountGhulam abbas

3rd Week22-july-2013 to 29-july-2013Deposit, Transfer and WithdrawalsOperational ManagerMr. M Tariq

4th Week29-july-2013 to 05-aug-2013Remittance DepartmentMr. Shabbier Anwar

5th Week05-aug-2013-to 12-aug-2013Clearing DepartmentOperational ManagerMr. Muhammad Tariq

6th Week12-aug-2013-to 19-aug-2013Credit DepartmentCredit In chargeMr. Ghulam Muhayiddin

Working activities during Internship: 1st Week:I spend my 1st week on account opening desk according to the direction of Manager. He gives me the basic instruction of opening of a new account. Following information is required while opening of a new account: Name of the person/Title of Account Signatures Nature of account Type of Account Category of Account Currency of Account Date of birth National Identity Card Fathers name Mothers name Residence address Content number Profession Next of Kin

Account Opening:When a person wants to open account in United Bank the bank officer give account opening form to him. All the requirements are must be filled and in additional form is required that is his income proof. This requirement is very important for the bank without income proof bank officer not allow him to open account. In this way bank secure himself from those persons how earn his money from bad ways in other words bank assure that is this money is black money or not. For example a person is come in bank for opening of a new account officer first of all demand income proof. He asks him how you earn your money? after this he check his nationality and demand a national identity card.Bank officer check the validity of the ID card, is this card is valid or not. If ID card is valid then further proceed other vise not. If ID card is not valid then his tell him that first you renew the ID card and then come in Bank. Bank officer take his ID card for scanning. After verifications bank officer fill up the requirements of the form with the help of the information provided by the customer that are mention in above. After completing the requirements of the form bank officer assign an account number. After assigning account number he uploads the information of account holder on the database of the bank. After this he asks to the customer that deposit amount in his account. For this purpose he fills the deposit slip and gives it to the cash counter.Here are a few types of accounts that I practice during my internship period.1. Current Account2. PLS Saving Account3. Basic Banking Account4. Business Account5. United Rising Star Account6. Foreign currency account7. Term Deposits8. PLS Term DepositTYPES OF ACCOUNT:

1. INDIVIDUAL ACCOUNT:in this account a singal customer operates the account. the banker will run the account according to the rules, but if the customer give the special instruction the bank will have to fellow it.

2. JOINT ACCOUNT: In this type of account two are more than two person will open the account. The account will be operated by one account holder in case of (either of the survival). If the instruction are not given, all the account holder will have to sign the cheque.

Current Account:Currents account opening facility is offer for the customers. Customers include individual, institutions, commercial customers. First time cheque book and ATM issued to the account holder is free. If first cheque book leaves are finished then customer apply for second cheque book then bank charge 5 rupee per leave of the cheque book.In current account bank not allow any profit is given to the account holder and no deduction is made by the bank. Only account maintenance charges are deducted if balance is lower than the 25000 rupee. Account maintenance charges are 50 rupee per month until the account is not maintained.Minimum amount is required for the current account is 500 rupee. Account holders can withdrawal and deposit money as he likes. He can withdrawal money many times in a day as he needs. Current account can be opened by a single person and can be open by the two persons joint account. In case of joint account cheque is not accepted without the signature of both persons.The account holder who wants to close his bank account he has to return his cheque book or present his cheque book to the bank officer after withdrawal his amount from the account.Eligibility of Opening of Current Account:All Pakistani Residents/Non-Residents (Single or Joint account), Companies/Firms etc can open this account.Any Foreign National Individuals (Single or Joint account) having valid Resident Pakistan ID card Visa/Work Permit can open this account.Requirement of opening of Account: Properly filled account opening form Original National Identity Card/ Passport of account holder Attested photocopy of National Identity Card/ Passport of account holder Proof of his income. In case of student university/college card, in case of job holder person attested copy of his job appointment letter and in case of business account his firms pad or his certificate copy with original certificate.PLS Saving Account:This is a type of saving account. In these types of accounts you can withdrawal amount and deposit amount and in addition bank give profit to the account holder. Profit rate is 5% per annual. Bank deducts charges. Profit rate is varies from time to time. Profit rate is applied to the average amount in a month that the customer have in his account. Minimum amount is required for opening of saving account is 500 rupee.Zakat will be applying on the saving account. It is the option for the customers either he wish to deduct Zakat automatically by the bank of not. Some customers pay Zakat himself. Tax is also applied on the saving account according to the rules and regulations of the ABL. Saving account can be opened by a single person and can be open by the two persons joint account. In case of joint account cheque is not accepted without the signature of both persons.The account holder who wants to close his bank account he has to return his cheque book or present his cheque book to the bank officer after withdrawal his amount from the account.

Eligibility of Opening of Current Account:All Pakistani Residents/Non-Residents (Single or Joint account), Companies/Firms etc can open this account.Any Foreign National Individuals (Single or Joint account) having valid Resident Pakistan ID card Visa/Work Permit can open this account.Requirement of opening of Account: Properly filled account opening form Original National Identity Card/ Passport of account holder Attested photocopy of National Identity Card/ Passport of account holder Proof of his income. In case of student university/college card, in case of job holder person attested copy of his job appointment letter and in case of business account his firms pad or his certificate copy with original certificate.2nd Week:Foreign Currency Account:United bank provide facility for its customers opening of account in foreign currency. You can open foreign currency account in current account, saving account, term deposit account. Allied bank open foreign currency accounts in US Dollar, Euro, British Pound and Japanese Yen.

Term Deposits:United Bank offer Term Deposit account. It gives high rate of return on different tenures. Term deposits time periods are 1 month, 3month, 6month and 12 month. Investment can be made with the minimum of Rs. 25,000. These term deposits are only payable on maturity. Any individual and any institute can purchase these term deposits.PLS Term Deposits:PLS term deposits scheme which gives a high rate of return on different time periods. PLS Term deposits time periods are 1 month, 3month, 6month and 1 year, 2 years, 3 years, 4 years and 5 years. These PLS term deposits are payable on maturity. PLS term deposits are can be payable before maturity according to the requirements of the customers. If the customer wants to take his money back then bank gives him back. In this case profit rate that are given to him is low as compare to the standards profit rates on his instrument holding duration. Any individual and any institute can purchase these term deposits.

3rd Week:Deposit, Transfer and Withdrawals:In this department I learn how to transfer cheques from one account to the other account, how to deposit cheques to their account, how to issue cheque books and ATM cards, how to fill the cheques.Cheque books are issued by the officer. When new cheque books are send to the branch from the head office he list down these cheque books on the register of cheque book. He makes record of current cheque books on the current books side and saving cheque books on the saving books side. When cheque books are received the bank call to the customer. Customers come in the bank and receive his cheque book. Account officer take receiving on the cheque books register. After verification he gives permission to the customer that now he can go.ATM cards are issued by the concern of officer. When new ATM cards are send to the branch from the head office he list down these ATM cards on the register of ATM cards register. When ATM cards are received the bank call to the customer. Customers come in the bank and receive his ATM card. Officer take receiving on the ATM cards register. After verification he gives permission to the customer that now he can go.When customer comes for receiving his cheque book he takes signature of the customer on the first acknowledgement page and also on the register. When customer gives back the acknowledgment slip to the officer he verifies the signature with the help of Specimen Signature Card. Specimen Signature Card is scan at the time of opening of new account. In bank daily some parties come and deposit their cheques to his own account. These cheques can be the same branch cheques or may be the same bank but other branches cheques. When a person or parties deposit his cheque in the branch he must fill the credit deposit slip. The following information must be provided or filled on the credit deposit slip: Date, Title of the account, Phone number, Account Number, Amount in figure, Amount in words and in last the signatures of the depositors.When person fill the requirement of the deposit slip then he deposit the cheque with the deposit slip. After receiving the cheque we check that either slip is filled correct or not. When we receive the cheque then we cross stamp on the cheque and also on the deposit slip. Authorized person signature on the deposit slip. One part of the slip is give back to the customer and one is hold for the record of the bank. If account is current account, business account and basic banking account then current deposit slip is filled and if the account is saving account, salary person account then PLS saving deposit slip is filled.Another thing is that transfer of amount through cheques. This process is done with the help of deposit slips. When one party or person want to transfer his amount from account to account then firstly fill the cheque of that account in which the amount is transfer to other account then fill the deposit slip. Current deposit slip is filled if the account in which the amount is going to transfer and PLS saving slip is filled if the account is saving account.Slip is filled by the name of the person in which the amount is going to transfer. The account number of the person is writing down and then date and after this amount is writes in the boxes. In the particular write the cheque number and branch code from where the cheque book is issued or where the cheque us belongs. Amount is written in both figure and word. In last the signatures of the depositor is taken. After receiving the cheque from the customers bank officer signature on the slip and cross stamp marked on the slip and also on the cheque. After this one left part of the slip is give back to the customer and the right part is hold for the record of the bank. Bank officer transfer or add amount of cheque through computer system. After the transaction is done by the computer bank officer print a computerized printing on the back of the deposit slip through a Flag bed printer.Flag bed printer is a printer that is used for the checking the cheques and for the printing of transaction on the back site of the slips and on the vouchers. This flag bed printer is used for the checking of the instrument. This device read the code of cheque that is written on the end of the cheque. This device is very helpful for the bank. If the cheque is illegal then this device not read the code written on the cheque.

Pay Order:Pay order is a bankers cheque to its customer. Pay order is prepared when bank give payments on his own behalf to the customers. In this branch where I did my internship Pay Order is prepared by the Operational Manager. Pay order is prepared when bank give payments to the parties for example when the payments of Wapda, Sui Gas, PTCL are collected. Pay order is also prepared when bank give payments of the bank expenditures e.g. water expense, AC repair charges, generator repair charges electricity charges and etc. Demand Draft:Demand Draft is also a bankers cheque but this is prepared on the demand/request of the parties or customers. Demand draft is prepared when customers or parties want to give payments to the other parties. For example in our branch Yamaha agency has a account when he wants to payment to the other party he come in the branch and fill the form of Transfer of Funds. In this form the following things are required: The name of the party where he want to transfer the funds Branch name in which the funds are going to transfer Amount in words and figure Signatures of the customer.

4th Week:Remittance Department:One duty of the remittance officer is the clearing cheques posting which are come from the other banks or other banks branches. He daily in start of the day he posting the clearing cheques. In our bank he also issues the bank statements on the request of customers. He also performs the duty of salary posting of BHS, Government teachers and also the salaries of the police.Online Funds Transfer:Remittance department officer also transfer funds from one bank to other banks. When a person wants to transfer amount/funds from one branch to other branch in the same bank he fill the Online Inter-Branch Transaction slip then deposit the amount on the cash counter. In case of account holder he gives cheque and mentioned the cheque number on the online slip. One part of the slip is given back to the customer and one part of the slip is attached with the vouchers. When a person wants to transfer amount to the other branch he must fill the Online Inter-Branch Transaction Request slip. In Online Inter-Branch Transaction Request slip he must provide the following information: Date Applicants Name Applicants NIC number Address Telephone number Remote branch name/ code Cheque number Remote account title Remote account number Amount in figure Amount in wordsAfter filling the following information he make signature on the slip. With this slip he deposits his amount on the cash counter. Casher receives the amount and refers this customer to the remittance officer. Remittance officer transfer these funds to the account that is mentioned on the online slip. On advice page remittance officer hit the online drop stamp and write the amount and account number of the remote account. In case of disconnect or linked down of the remote branch he made an advice to the remote branch and send this advice by post. When remote branch receive this advice on the next day he enter the amount on the account that is mentioned on the advice. Foreign Currency Account:United bank deal with Euro, Pound, US Dollar and Japanese Yen currency. This bank is also registered branch with the State Bank of Pakistan. You can open any type of account in foreign currency. In this type of account counter payments are only in Pak rupee. The limitation of the bank is that he not deals in money exchange. 5th Week:Clearing Department:The main function of the clearing department is to collect the cheques from the customers for the clearings purpose. When customer comes in the branch he fills the slip of his account number. In slip he also mention the cheque number and bank name of the cheque. After filling the slip he gives it to the officer. Officer cheque all the requirements of the cheque for example date of the cheque, signature of the person who issue this cheque and also amount of the cheque both in figure and words. After checking all the requirements of the cheque he hit the stamp on the slip and cheque. One part of the slip gives back to the customer and one in not. These cheques are other braches cheques. He collects many cheques in a day. In evening he arranges the cheques of different cities. Clearing is basically is a two types one is Intercity clearing and the second is same city or within city clearing. Intercity clearing cheques are those cheques which send outside of the cities. Same bank cheques are posting on the system and his credit slip and print of cheques list is put on clearing file. The record of other banks intercity clearing cheque maintained on the intercity clearing file.To arrange the payment of cheques these cheques to the clearing houses for the settlement of payments. This all process is done by NIFT. NIFT is responsible for the management of clearing house facilities in Pakistan. It provides services of intercity clearing, same day clearing, interbank clearing, cheque book delivery form head office to the branches, ATM card delivery and etc. The function of NIFT is to collect cheques from his affiliated bank or members of NIFT banks. After collection of cheques from different bank he distributes these cheques to the related banks. Those banks which are not the members of NIFT send them OBC. OBC is not treated by NIFT this is send back to the branch.There are many banks are the members of NIFT where as some banks are not the member of NIFT. In this case Operational Manager of our branch prepares the OBC. OBC stands for Outward Bills Collection. The record of OBC is maintained on the OBC file and the entry is entered on the OBC register. In OBC register we assign the OBC no to the cheques and enter the name and account number of the parties. After this enter the name of the city where the cheque is going to present. In addition the Inter Branch Clean Bills Schedule is prepared for this purpose. While preparing Inter Branch Clean Bills Schedule we write the date, branch name where cheque is send, amount, bill number, drawee name and cheque number.

Cheque:

A cheque can be defined as a written order of the customer upon a bank to pay to or to the order of designated party or to the bearer a specified sum of money on demand. The main characteristics of the cheques are as follow:(1) It is an order of the customer without any condition.(2) It is drawn upon a certain bank in writing.(3) The banker has always to pay it on demand.(4) It is payable to a certain person or to his nominee or to the bearer of the instrument.

Essentials:The following essentials are taking into considerations:

1. In writing:The writer should be in writing. It includes print and cheque is made out on a type writer is valid

2. Unconditional Order:The language in writing a cheque should be valid. For example, a cheque is in the following term: Pay X Rs. 25,000/= is a valid cheque. Whereas pay A Rs. 50, 00,000 if you can is not a valid cheque.

3. Signed by drawee:The signatures of the drawee on the cheque should be matched with the signatures as these were at the opening of the account.

4. Certain sum:The amount written in words and figures should be matched with one another.

Types of Cheques:

The cheques are two different types. Open cheques and Crossed cheques

(1) Open Cheques:These are those cheques which are paid across the counter of the bank. Open cheques may be bearer or order cheques.

(i) Bearer Cheques:If a customer orders to the bank to pay a stated sum of money to the bearer then it is called a bearer cheque. Any customer who lawfully possesses a bearer cheque is entitled to receive payment of that cheque.

(ii) Order Cheque:If a cheque is to the order of a person in whose favour the cheque is drawn, it is called the order cheque. The order cheque is paid by the bank only when the bank is satisfied about the identity of the payee.

(2) Crossed Cheques:The crossed cheque that can be identified easily. There are two parallel lines across the cheque with or without words. This cheque can not be paid on the counter of the drawee bank. It is deposited in the account of a person in whose order or favor it is drawn.

Kinds of Crossing:Formally there are two kinds of crossing.1. General Crossing2. Special Crssing

1. General Crossing:Two parallel transverse lines are drawn on the face of the cheque with or without words.. There are different words for general crossing.(i)Crossing with two parallel lines.(ii)Crossing contains the words &Co

1. Special Crossing:When a cheque bears across its face the name of the banker with or without the words, not negotiable, in this case the payment is only made to the bank name written on the cheque.

Objective of Crossings:The following objectives are obtained from a crossed cheque:1. The payment of the cheque can not be paid to the wrongful holder.2. It ensures that the payment is made to the concerned receiver.3. It elps to prevent any cheating or theft.

6th Week:Credit Department:The basic function performs by the bank is to accept deposits from different parties and lend money to the borrowers against a spread so to be able to get some profit for the depositors and as well as for the bank.Following are the lending principles: The purpose of the advances should be lawful and productive. It should be ensured that the bank funds are not being utilized for other business. The credit limitations by the central bank should not be dishonored and it should also be ensure. It is always positive for the bank to investment for the short term requirements. At the end result every business should be earn some profit. Similarly the banks must get some net income out of the action of loaning so that the depositors could get their shares as well as the share holders could earn some benefits for their investments. Safety Principal means that the lend money will come back with interest. The bank should not invest money in uncreative or exploratory business. Bank always invest his money on those businesses that generate profit and give benefit to the bank. Liquid Principle means that the money which has been lending to the lender should be returned to the depository financial institution on requirement or as per refund schedule provided by the client. The proposal should be deal on its merits not on the security. The security should be considered a safety for the bank in case of unexpected emergency. All the relevant documents of the securities must be obtained and got evaluation of the property or any other security should he assessing properly. Its always harmless for the banks to extend the risk in large number of borrowers instead of giving huge loan to the one person, it is better to obtain different types of securities instead of concentrating on one security. It is our responsibility to make sure that no loaning is running counter to national interest. It is also our obligation to ensure that our lending policy is not against the social circumstances or binding. Closing of an Account: There are several reasons why account holder might need to close the bank account. The account holder could be moving to a location that doesn't have a branch or account holder might want to stop an automatic debit. Whatever the reason, by following these steps, the account holder can close the account. Instructions: Step1 Make sure all cheques have cleared the bank account. As soon as the account is closed, the bank gives the balance of the account. Step#2 Switch banking information with employers and vendors. Before the closing of the account. Change information with any vendor who automatically debits the account. Step#3 call the bank. Before make a trip to the bank, there is a need to call and find out the bank's policies. There are banks that charge a fee to close an account. Step#4 physically go into the bank to close the account. Most banks will require two forms of identification. Step#5 The account holder can transfer the funds into a new account or get the amount in cash. 5.4.4 Departments in United Bank Ltd Tanda branch:There are following departments are working in this branch:Deposit, transfer and Withdrawal:The basic purpose of this department is to maintain the records of accounts. Officer accepts the cheques from different parties. He also accepts the cheques of those persons who wish to transfer cheques form account to account that he received from other parties. These cheques are may be Allied Bank cheques and may be other banks like Bank of Punjab, Askari Bank, National Bank, Dubai Islamic Bank etc.When he received his own bank cheques he transfer cheque amount from account to account through system and when he receive the other branches cheques and also other Banks cheques then he send these cheques to NIFT (National Institutional Facilitation Technology) for clearing. When clearing has been passed then the officer transfers the amount of cheques that has been passed through clearing to the account of the party who present his cheque for clearing.The officer posted entries to the computer. All Allied bank branches are interconnected through online network. Entries that are posted in one branch can be viewed in the other branch. Voucher system is also use for the record keeping. Some time data is wrongly posted in the system and record keeper feel of remember after one day or after some time than voucher helps them for correction. Voucher is prepared for every transaction for cash and also for clearing purpose. Credit department:The basic function of the advancing department is to give facility of loan to the customers. Advances when a customer comes in the bank for taking loan advances incharge firstly fulfill the requirement of the bank lending principals if customers fulfill the requirement of the bank then he is capable for lending of money. Bank give loans to its customers then receive back his loan with interest. Clearing department:The main purpose of clearing department is to collect cheques from his customers. He arranges payments of the cheques. To arrange the payment of cheques he sent these cheques to the clearing houses for the settlement of payments. This all process is done by NIFT.NIFT is responsible for the management of clearing house facilities in Pakistan. It provides services of intercity clearing, same day clearing, interbank clearing, cheque book delivery form head office to the branches, ATM card delivery and etc. The function of NIFT is to collect cheques from his affiliated bank or members of NIFT banks. After collection of cheques from different bank he distributes these cheques to the related banks. Those banks which are not the members of NIFT send them OBC. OBC is not treated by NIFT this is send by TCS. Cash department:Cash department basically perform two functions. One is receive cash and other is payment of cash. Casher receives cash of those persons who have account in the bank. He also collects utility bills, school fee and etc. He made payments of cheques that are presented on the cash counter. Bills department:There are two types of functions that performed by bill department one is Inward Bills Collection and other is Outward Bills Collection.Inward Bills Collection (IBC):Inward bills are those cheques which are collected locally through post. These cheques are of those banks which are not the member of NIFT.Demand Draft:Demand drafts are refers to the payments on the demand of the holder of draft. It includes DD issue and DD payable.Outward Bills Collection:Clean Bills:Clean bills are negotiable instruments which are drawn on outstation branches. These bills are sent for collection of payments on the behalf of the customers.Pay Order:Pay order is issued to other branches or banks for collection of payments on behalf of own his bank. Bank issues pay order to the parties or customers on his own behalf.Remittance department:Remittance department transfer funds from one bank to other banks. When a person want to transfer amount from one branch to other branch in the same bank he fill the online deposit slip then deposit the amount on the cash counter. In case of account holder he gives cheque and mentioned the cheque number on the online slip. One part of the slip is given back to the customer and one part of the slip is attached with the vouchers. In case when online transaction is drop due to link down of the other remote branch where customer wants to transfer amount then advice is made and send to the remote branch by post. When remote branch receive the advice then transfer amount to the account that is mentioned on the advice page.On the demand of the parties demand draft is made. Demand draft is made on the request of the parties when he wishes to pay amount to the other parties.

Foreign currency department:United Bank provides a facility to its customers opening account in foreign currency. It can be opened in US dollars, Euro, Japanese Yen and British Pound. Foreign currency officer handle the transaction of foreign currency. He manages the transaction of those customers who made transactions of US dollars, Euro, Japanese Yen and British Pound. SAFETY OF TRANSACTIONS:All transactions for payment of purchase through POS terminal require use of your exclusive ATM PIN known only to your self a sound and safe security feature.Balance Enquiry:The POS Terminal may also be used for Balance Enquiry of accounts linked to the card.Cash Withdrawals:Cheque Free Banking shall be made available through POS Terminal installed at dedicated cash counters at branches manned by a cashier.Lockers:-Specially designed lockers of various sizes to meet the requirements of applicants are available at Ubl designated branches. The lockers may be operated during the banking hours of the branch.ELIGBILITY:

Only Account holders of Ubl branches are eligible to apply for renting the Safe Deposit Lockers. ALLOTMENT OF LOCKERS: A locker of the size of applicants choice shall be allotted subject to its availability. Banks prescribed License Agreement on Stamped Paper to rent the Locker is required to be executed by the applicant with cost thereof payable by the applicant. Key Deposit money as per our Schedule of Charges in force is payable by the renter. The Key Deposit is refundable when the locker is surrendered. In case the key to the locker is lost, the key deposit shall be forfeited. Golden deposit certificate:-United Banks 5 years Golden Deposit Certificates provide monthly income based investment opportunities to small and medium income group investors, Charitable/ Benevolent Funds, Trusts, Societies, Associations and Clubs with an attractive return. Business Firms and Corporate can also invest.Diamond deposit certificate:-United Diamond Deposit Certificates:United Diamond Deposit Certificates provide investment opportunities to small and medium income group investors, Charitable / Benevolent Funds, Trusts, Societies, Associations and Clubs with an attractive return.Salient features of United Diamond Deposit Certificates:Certificates are issued for fixed periods of 1, 2 and 3 years. Annualized Rates of expected Profit: from 12 % p.a. to 14 % p.a. Profit paid at monthly intervals calculated from date of deposit. The certificates are issued in multiples of Rs. 10,000/- Financing facility up to 90 % of Deposit available.

5.4.6 Summary of the learning:5.4.6.1 Skills and Qualifications:During my internship I learn some skills. I learn how to behave in different situation with the customers. When customers are satisfied then they are loyal with the organization. Organizations success depends on the loyalty of the customers. If you are unable to keep your customers satisfied/ loyal then it is not fruitful for the organizations. Banks are totally depends on the depositors of the customers. Deposits are called the life blood of the banks. Without of the deposits of the customers bank can not generate profits. Besides improvement in my skills I gained some knowledge in the field of banking. By remaining at university I had known to some extent the purpose of varied instruments used at banks.Technology play very important role in the success of the organizations. Now a days every bank or organization tried their best to use the best and latest technology for their success. The important skill that I gained is the skill of management. I learned that how to manage different kind of customers, how to resolve their queries in order to keep them satisfied. I learn that how the outward clearing is dispatching, what steps are involved. I also learn about the preparation of the bank instruments like the Pay Order, Demand Draft, filling of credit slips of saving account, current account and online fund transfer slips.5.4.6.2 Responsibilities during Internship:In my internship duration Im responsible for the filling of credit deposit slips, maintaining the record of cheque books that are daily come from the head office and also for the ATM cards. I am also responsible for preparing the daily intercity clearing. In intercity clearing I separate the different cities cheques and then verify the cheques and mark the intercity clearing stamp and then clearing date stamp and endorsement stamp in back. I am also responsible for the filling of slips of transfer of account, online funds transfer slips, saving and current account deposit slips.Any major duty was not assigned to me because I have no any experience before this internship and also because I am a student thats way bank officer not assign me any special duty. My duty was to learn and concentrate on how things done in business organization in a practical environment.5.4.6.3 Influence on my Future Career:Internship play very important role in influencing my future career plan. During my internship I get experience in finance sector. I learn how the bank take deposits and give loans to the customers and then get back with the profit for its depositors and also for the bank itself. My internship program in United Bank inspires me very much. I like to do the practical work very much, so now I take keen interest to join the banking sector.5.4.6.4 Internship Activities are correlated with Classroom Knowledge:Internship activities are correlated with the class room knowledge. In my previous semester I studied about the banking sectors. In which I study about opening of account, characteristics of cheque and clearing and also some extent to loans. Now my concepts are more cleared after my internship. My concepts are clearer by practicing these things in the bank. The basic rules of financial accounting were practiced during the internship days like implementation of the basic rules, the rules of debit and credit. The knowledge that I get from marketing courses was practically observed. I learned how to deal with different customers in different situations. I learned how to solve their problems and what kind of services must be provided in order to keep them satisfied so their loyalty can be achieved in order to maintain long term relationship with them. The practical implementation was observed.6. CONCLUSION OF THE REPORT:The analysis of strengths, weaknesses, opportunities and threat as narrated above tells us about the present vital concern. The internship of UBL gives me as exposure to the accounting atmosphere. It helped me greatly in understanding the financial system. The experience I got during the internship will help me in understanding the decision-making and how to solve daily problems encountered during the practical working environment

6.2General observations about the sector:The UBL exist in private sector, private sector is part of economy and run by private individuals or groups, usually as a means of enterprise for profit and is not controlled by the state.

6.3SWOT ANALYSIS:The SWOT analysis consists of analyzing organizational strengths and weaknesses, and its environmental opportunities and threat. It helps to identify a strategic niche that the organization might exploit. SWOT analysis of UBL is as follows.

STRENGTH: UBL has got a well reputed on -line system in most of its branches. Remittance department is working very efficiently in transferring the funds to peoples due to this system The bank also has started ATM facility in most of the branches 24 hours banking is now the trend in Pakistan. Bank is providing quick credit services to all the customers at all branches, because the credit manager cooperates with the borrowers while making a loan request to the bank. Management is well organized, Services provided by the branches are very good. The bank has stable growth in deposits since its emergence. The loan facility provided by the bank is on sound basis. They have many checks and documentation that secure their money after advancing. Because of its 1056 Domestic Branches they have very good infrastructure and are prevailing now outside Pakistan also. Very important aspect of UBL is its fast service. Everything goes very quickly. If you are looking for a loan, or you want to deposit money or you want to pay your bills their services are so fast that they respond the customers very quickly. UBL has financial strength as they are gaining profit from the advances that they provide to the organizations. UBL is providing lot of services to its customers like incase of remittances they have services like online services. The Management has changed; employees who are useless are fired and new-experienced graduates are hiring to enhance the operations of the banks & the employees, which are efficient they are getting promoted. Because of its quality management, marketing, innovation in products and services they have established a good reputation in the banking sector. In UBL the working environment is very good. Every employee comes there and works with zeal & heartily. Certain training programs are arranged outside the working environment to train and refresh them or entertain them.WEAKNESSES: The human resource department is not performing well in the organization, Bank is not introducing new products these days, so bank should boost the product development and increase the range of facilities offered for customers. And the rates of interest on its various products have been reduced. Bank is under staff so absence of members create problem All the branches are not computerized. UBL is centralized. It means authority is not delegated to branch level. Manager cannot take initiative regarding different decisions such that for giving finance. The majority of people are not well aware about the products of UBL It is due to their very low services of promotional activity. There is low level of motivation in the employees of the bank UBL Management has adopted reactive approach they respond to the market very slow and are reluctant to take initiative before the problem arises.

OPPORTUNITIES: Government is taking very bold steps to promote IT in Pakistan. UBL has an opportunity to improve in IT stock exchange is very volatile and takes immediate effect so in times of crises conservative investors turns to saving deposits. UBL is surrounded by many competitors it has an opportunity to aggressive marketing to increase its business. One could find opportunities in good marketing; it could also helpful in bank's promotion. Mobile banking is a concept that has started to find its roots in the banking sector. So it is a big opportunity for UBL to avail this chance at big level. Opportunities exist for expansion of UBL chains in the International Arena; Particular Invention must be given to the individual country's customs and cultural practices to be successful. UBL should organize trade shows for the promotion of export for that they should finance the companies 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 implemented by WTO in a few years to come. So keeping in view these perspectives there is great opportunity for UBL to be stronger. An external opportunity exists in efforts to improve the social environment of local communities and society in general by offering innovative, community - involvement programs.

THREATS: UBL has many competitors who are continuously increasing their products and marketing aggressively it may cause its customer to shift to its competitors. The rapidly changing environment in the banking sector and the quick response of the other banks to these changes can be a threat for UBL. What customer really wants is a difficult thing to identify 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 banks. Changing Governmental Policies instability in Politics can be seen as a threat for the banking sector. Competition can be the greatest threat for the UBL. As old banks have started changes and many new banks are emerging as a strong entity so UBL will face a strong threat from this competition unless adopt pro - active approach to handle these threats. The political conditions of the country affect the banks performance.

7.RECOMMENDATIONS:SWIFT MECHANISM:SWIFT mechanism is gaining importance for the treatment of LC and it has been found that UBL has only provited 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 for LC in their Central branches inside the country.TO AVOID CUSTOMER DEFECTION:During my time period that 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 were not viewed in the list for a longer period of time. To avoid their defection whether it is partial or full relationship should be created by giving a phone call. It will make betterment in UBL s goodwill and their profits.REDUCE COMPLEXITY IN ADVANCES:While providing advances the mechanism that is opted 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 advances 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 has internationalized already and is performing very well in its abroad branches. But UBL has internationalized to few countries. They have big markets ahead of them and with their working activity will get simpler with that. In the form of European countries and markets like CHINA where there is lot of activity related to banks they can expand their chains.MOBILE BANKING:Mobile banking is actually a banking that you can do yourself. You can perform various activities of bank through your mobile phones or through your computers. With just a call you can transfer money from an account to another and similarly other activities. It is a concept that is gaining importance throughout 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 to survive in this sector. What I have observed is that UBL management is having reactive approach means that they react to the situation that their competitors have created. In case of consumer financing UBL has respond by having same schemes that have been already launched by their competitive 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 competitive 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. RELATIONSHIP: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.

BUSINESS PARTIES:UBL should start thinking about relationship with the parties that are willing to do the business with the bank. Business in the form of deposits for a longer period of time. Rather than looking for small parties whose purpose is just to deposit in the morning and have withdrawal in the evening should be discouraged. Lot of time in work activity can be saved by having few but good parties rather than having huge accounts of small amount and specially those are not for the purpose of long term deposits. 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 like ALFALAH and UNION BANK. They should start thinking about changing their attitude from now. Performance Appraisal & Compensation:Employee appraisal is an major part good and effective HRM. It consist of systematic evaluation of an individual with respect to his personal traits and characteristics, his on job performance and his potential for development. In Unite Bank Limited there is no appraisal system exists. No relationship has so far been established between appraisal and staff motivation. No weight is assigned to appraisal in making decisions on promotions, postings, etc. Compensation is a necessary thing for employees satisfaction. And UBL has not any proper compensation plan when ever management decide to give bonus or extra salary to employees it is followed. So there should be proper compensation plan.Product Marketing:This is age of competition and every organization is facing hard competition from not only domestic organization but also from the international organizations due to globalization. Due to this competition the marketing department plays a vital role in the success of the organization. UBL should have a strong marketing department like many other private banks have, for the publicity of their products and make well inform the customers all the services provided by the bank and to conduct detailed market researches to find out new opportunities, needs of the customers and make comprehensive plans to capitalize those opportunities.Appearance:Physical appearance of the location and inside the building also matters. 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 provide the facility of charge card as well.Recovery Facility:It should also provide the facility of recovering notes payable and accounts payable8.REFERENCES:BIBLIOGRAPHY:BOOKS: James C. Van Home, John M. Wachowicz, Jr. "Chapter # 6 Financial Statement Analysis", financial management 10th Edition, 121-157 Richards, Verlyn D and Eugene J. Laughlin. "A Cash Conversion Cycle Approach to Liquidity Analysis". Financial management 9, 32-38. The Professionals' Academy of Commerce (PAC), "Introduction to Financial Accounting" 3-10. Lawrence J. Gitman "Chapter # 3 Financial Statements, Taxes, Depreciation and Cash Flow" Principles of Managerial Finance 9th Edition, 78-84.LINKS www.ubl.com.pkwww.google.com.pk www.ubl.com.pk www.sbp.com.pk

SOURCES: Annual reports of UBL and Previous years reports of UBL. Existing documents of UBL.

ANNEXURE A

HIERARCHAL STRUCTURE OF UBL ATHEAD OFFICE LEVEL

Board Of DirectorsCorporate BankingAgricultural LoansCommercial BankingTreasury & C.MInvestment GroupH.R.MConsumer BankingExecutive Committee

Marketing DepartmentIT DepartmentAudit & InspectionService & Quality

ANNEXURE B

HIERARCHAL STRUCTURE OF UBL AT BRANCH LEVEL

Branch Manager, Area Operational ManagerCustomer DepositCash & ClearingMarketingAdvanceAccountsInformation TechnologyForeign ExchangeBills & Remitt

9MBA(Finance)