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Transcript of UBL Report
AN INTERNSHIP REPORT ON UNITED BNAK LIMITEDTAKHT BHAI BRANCH
WAQAR AHMAD
INSTITUTE OF MANAGEMENT STUDIES UNIVERSITY OF PESHAWAR
June 2002
AN INTERNSHIP REPORT ON UNITED BNAK LIMITEDTAKHT BHAI BRANCH
INTERNSHIP REPORT SUBMITTED TO INSTITUTE OF MANAGEMENT STUDIES UOP
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MBA
June 2002
INSTITUTE OF MANAGEMENT STUDIES UOP
AN INTERNSHIP REPORT ON UNITED BNAK LIMITEDTAKHT BHAI BRANCH
SUPERVISOR:
Signature
Name Mr. Abdul Wahid
Designation Coordinator MBA
COORDINATOR R& DD:
Signature
Name Mr. Zia ud Din
PREFACE
The development of skills to perform well in professional life has become a
dire need of every Business Graduate. The very purpose, an internship is to
acquaint the business graduate with empirical business practices.
As a compulsory requirement of Professional Degree in Business
Administration, I opted to join United Bank Limited, to fulfill my degree
requirement. My reason for choosing UBL was to enhance my skills in
Management Finance and Accounts, so that to provide myself the opportunity
to cope with real life situation.
To better understand the report my recommendation would be to look into
different parts mainly covering the overview of UBL, overall management of
Finance and Accounts.
I pay my gratitude to all my teachers, senior staff members of IMS and all my
colleagues. Deep gratitude is extended to Mr. Sarfaraz Khan (Manager UBL,
Takht Bhai Br.). I am also thankful to the staff members of UBL, Takht Bhai
Br. for their continuous help and guidance during my Internship.
I am indebted to Mr. Abdul Wahid who proved to be more than a supervisor,
whose guidance enabled me to write this report. His wisdom, kind
considerations, and unique insights were invaluable and his real world
experience added an extra advantage to my report.
Finally, keeping the tradition alive as well as fulfilling social and ethical
responsibility, my dedications will always go to my dear Parents & Family
and Friends.
Waqar Ahmad
i
LIST OF CONTENTS
Preface I
Acknowledgement Ii
List Of Contents Iii
List Of Graphs
List Of Acronyms
Executive Summary
Section-1
Chapter # 1 _____________________________________________________
INTRODUCTION 1
1.1 Objective of The Study 1
1.2 Scope of The Study 2
1.3 Importance of Study 2
1.4 Research Methodology 3
Section-2
Chapter # 2 _____________________________________________________
IMPORTANCE OF BANKING 4
2.1 Major Functions Of Commercial Banks
2.2 Banking in the World’s Economy 8
2.3 Role of Commercial Banks in the
Economic Development of Pakistan-- 9
ii
Chapter # 3 _____________________________________________________
HISTORY AND GROWTH OF UBL 20
3.1 Number Of Branches
3.2 Services Offered by UBL 23
Chapter # 4_____________________________________________________
ORGANIZATION STRUCTURE OF UBL 26
Chapter # 5 _____________________________________________________
DEPARTMENTATION
6.1 Accounts Department
6.2 Remittances Department
6.3 Deposits Department
6.4 Advances Department
6.5 Foreign Exchange Department
6.6 Clearing House
Chapter # 7 _____________________________________________________
FINANCIAL PRODUCTS OF UBL
7.1 Unicash
7.2 Unisona
7.3 Unizar
7.4 Unisaver
7.5 Tezrafter
Section-3
Chapter # 8 _____________________________________________________
iii
FINANCIAL ANALYSIS
Common Size Analysis of Balance Sheet
Common Size Analysis of Profit and Loss Account
Trend Analysis(Regular)
Trend Analysis(Percentages)
Ratio Analysis
Chapter # 9 _____________________________________________________
SWOT ANALYSIS
9.1 Strengths
9.2 weaknesses
9.3 Opportunities
9.4 Threats
Conclusion
Section-4
Chapter #10
10.1 Problems Faced By Banking Sector In Pakistan
10.2 Conclusion
iv
LIST OF ACRONYMS
AVP Assistant Vice President
IDBP Industrial Development Bank of Pakistan
DD Demand Draft
ADBP Agricultural Development Bank of
Pakistan
GM General Manager
HO Head Office
L/C Letter of Credit
UBL United Bank Limited
OGI Officer Grade I
RTC Rupee Travelers Checks
SBP State Bank of Pakistan
SEVP Senior Executive Vice President
SVP Senior Vice President
TT Telegraphic Transfer
NIB Non Interest Banking
IMF International Monetary Fund
DM Deutsche Mark
FDD Foreign Demand Draft
MT Mail Transfer
VP Vice President
v
EXECUTIVE SUMMARY
Now a days strong and efficient capital and financial institutions are the basic
requirements of each county. So no country can be considered strong without
having strong enough capital and financial institutions and markets. One of the
components of these financial institutions are the banks. No one can deny the
role the banks are playing in the economic development of a country.
In Pakistan’s banking sector, UBL is one of the leading commercial banks.
Very renowned bankers such as I.I. Chundrigar and Agah Hassan Abidi
established UBL in 1959. From the very beginning, UBL was showing very
good performance but in 1974 after the nationalization of commercial banks,
the bank has received some very severe financial shocks. The shocks received
in 1995 were so severe that SBP had to assume the control of the bank in order
to save it from bankruptcy. But after taking over the management of the UBL
by the new set-up under the leadership of Zubyr Soomro, the bank was
successful in rebuilding its shattered image. The new management started new
schemes and injected new concepts in order to improve its services to the
clients. Now the bank is in very good financial position and also has gained its
lost Goodwill.
My two months internship in UBL TAKHT BHAI branch gave me a
very good deal of the practical experience about the bank, its personnel and
various services it offers to the clients. Although two months duration for
studying such a large organization by no means is enough but I have tried my
ever best to cover all the areas of the bank in my report.
I have divided my report in ten chapters.
Chapter # 1 is about the introduction of the report. In this chapter it is
discussed that how the internship is important and what a student can learn
vi
from it. Light is also thrown on the way in which the research has been
conducted.
Chapter # 2 of my report is about the importance of banking. This
chapter contains detailed information that what role the banks play in the
economic development of a country.
Chapter # 3 is about the Evaluation of banking. In this chapter the bank
is defined. Growth of the banking globally as well as in Pakistan is pointed
here.
Chapter # 4 is about the historical background of UBL. The
circumstances in which UBL was established and its growth are discussed
here. This chapter also gives the information about various services offered by
the UBL.
Chapter # 5 of my report is about the organizational structure of UBL.
Hierarchy of staff and various positions of seniority are shown and discussed
through a Chart.
Chapter # 6 covers various departments of UBL. Each department is
separately given due consideration. Various functions performed by different
departments are highlighted.
Chapter # 7 of the report throws light on various financial products
UBL offers to its customers.
Chapter # 8 of the report consists of analysis. Financial statements are
analyzed horizontally and vertically. Also the performance of the bank has
been shown through ratio analysis and trend analysis.
Chapter # 9 includes SWOT analysis of UBL and conclusion based on
SWOT analysis.
vii
Chapter #10 contains problems faced by banking sector. First problems
faced by banking sector in Pakistan are discussed and then problems of each
department of UBL are highlighted and possible suggestions to each problem
are given.
viii
Chapter-1 Introduction
INTRODUCTION
1.1 OBJECTIVE OF THE STUDY
For getting the master degree in business administration, each student is
required to spend at least two months as an internee in a recognized
organization. The students are required to work in their own field in which
they have done their specialization.
Main purpose of this program is to make students familiar with the practical
work, as there is great difference between what they have learnt during their
MBA and how the job is practically done.
Another important aspect of the internship program is that internee is placed in
most of the departments of the organization through job rotation. It provides a
glance of each department, as the period is too short for learning in detail.
1.2 SCOPE OF THE STUDY
1). It is a compulsory requirement for the award of Master’s Degree in
Business Administration.
2). It will help the present and prospective students of the department in
making assignments and writing reports on the UBL, evolution of
baking, importance of banking and different operations.
3). It can also provide help to UBL’s management in identifying their
Strengths, Weaknesses, Opportunities and Threats.
4). It can also provide assistance to students seeking financial data for
analysis.
1.3 IMPORTANCE OF STUDY
Banks play a central and very important role in the economic life of a country,
that’s why they are considered as the lifeblood of modern economy. Today no
1
1
Chapter-1 Introduction
one can deny the importance of banking in the economy. They facilitate and
expedite trade and commerce and provide a variety of services that one can’t
imagine with out banks.
I have chosen the United Bank Limited Takht Bhai branch for my internship
because it has all the departments a bank could have.
Besides this, UBL plays an important role in the economic development of
Pakistan.
1.4 RESEARCH METHODOLOGY
The methodology that I adopted for this research project is based on both the
primary as well as secondary data. The sources of primary data were:
1. Formally arranged interview/ discussions with Management,
Director and Joint Directors.
2. Personal observations.
The sources of secondary data were;
1. Annual reports
2. Over view of the UBL
3. Relevant books.
During the research project, I observed that enough written material regarding
the Bank is not available, so I had count on my personal observation and
interviews with directors.
2
Chapter-1 Introduction
I spent eight weeks in the main branch and one week at each department and
collected information from discussion and interviews with directors, so most
of the data of this report is primary .I also availed assistance from few relevant
books.
3
Chapter-2 Evolution of Banking
4
Chapter-2 Evolution of Banking
EVOLUTION OF BANKING
“It has not so far been expressly decided as to how the word “Bank”
originated. Some authors opine that this word is derived from the words
“Bancus” or “Banque” that mean a bench. The explanation of this origin is
attributed to the fact that the Jews in Lombard transacted the business of
money exchange on benches in the market place, and when the business failed,
the Banco was destroyed by the people. Incidentally the word bankrupt is said
to have been evolved from this practice. The opponents of this opinion argue
that if it was so, then how is it that the Italian moneychangers were never
called Banchierei in the middle ages?
Other authorities hold the opinion that the word Bank is derived from the
German word “Back” which means joint stock fund. Later on, when the
Germans occupied major part of Italy, the word “Back” was Italianized into
“Bank”.
It is therefore, not possible to decide as to which of the opinions is correct, for
no record is available to ascertain the validity of any of the opinion1”.
3.1 EARLY GROWTH
“Banking in fact is as ancient as human society. For eversince man came to
realize the importance of money as a medium of exchange. Perhaps these were
the Babylonians who developed banking system as early as in 2000B.C. It is
evident that the temples of Babylon were used as banks because of the
prevalent respect and confidence in the clergy.
1 Siddiqi Asrar H. “Practice and law of Banking in Pakistan” 6th ed. Royal book Co. Karachi
P-1.
2
5
Chapter-2 Evolution of Banking
King Hammurabi (1728-1686 B.C.) the founder of the Babylonian empire
drew up a code wherein he laid down standard rules of procedure for banking
operations by temples and great landowners.
It is not certain as to who invented money; but history records that Gyges,
king of Lydia cast electrum (a natural alloy of gold and silver) ingots of
identical shape and of uniform weight with a triple emblem engraved on it as
an official guarantee of value in 687 BC.
Also in Greece, the temples of Epheusus and Delphi were the biggest “Banks”
of their time, where the people deposited their money and other valuables for
safety and security, and were also the first-acted financial agents. After some
time, Aristotle‘s dictum that “ Charging of interest is un-natural and immoral”
became very popular, but the following periods’ growing necessity forced the
acceptance of the principle of interest in lending and borrowing.
The Romans, though they did not organize state banking, nevertheless
regulated the conduct of private banks in such a way that extreme confidence
of the people was created with the “Revival of civilization” (Renaissance) in
the middle of the twelfth century. Trade and commerce started expanding, and
this development compelled the business community to borrow money from
the Hebrew money- lenders on high rates of interest and usury.
Seeing the great demand, these moneylenders started organizing themselves,
and banks started coming up at the principal seaports in southern Europe.
Soon Venice and Genoa became the most important money markets of the
time; and banking, though different from its present form, flourished. What we
know now as “ modern banking” originated in the 14th century in Barcelona.
In 1401 A D a German Public bank was formed comprising the operations of
discounting deposit and transferring of money. By the 16th century, some more
public banks were formed in Venice, Milan, Amsterdam, Hamburg and
6
Chapter-2 Evolution of Banking
Nuremberg. Similarly in 1690, the Bank of Hamburg came into existence in
Hamburg with the business of accepting deposits of fine silver or of foreign
moneys and to run accounts on these deposits. This bank rendered great
service to the merchants as well as the countries it dealt with until 1873, when
it was merged with the Reich Bank2”.
3.2 MODERN BANKING
“Despite the classical origin, banking in modern form and structure started in
Britain when many of the Lombard merchants came to England in the
fourteenth century and settled in the parts of the city of London now called
Lombard street. They were so resourceful that even the kings had to depend on
them for loans despite the fact that the church was firmly against usury. They
dealt with not only keeping the money in safe custody but also changed money
for the travelers or merchants engaged in foreign trades.
The discovery of America brought riches to England and gave a tremendous
boost to foreign trade. The merchants now began to hold part of their riches in
cash. These transactions, however, received a big setback in 1640, when King
Charles -I seized 130, 000 pounds and billion left for safe custody with the
city merchants at the Royal Mint.
This shook the confidence of the merchants in the Royal Exchanger and the
Royal Mint. Consequently this business was taken over by the goldsmiths
who, up to that time, were dealing only in gold and silver. These goldsmiths
issued receipts or notes to their depositors in respect of the cash or articles left
with them. These were called Goldsmiths Notes, and carried an undertaking to
return the money and articles to the depositors or bearers on demand.
2 Ibid p-1
7
Chapter-2 Evolution of Banking
Over period of time, these goldsmiths discovered that large sums of money
were left in their custody for long periods, therefore, they started the use of
this cash to advance loans to other persons for a fixed period of time and at a
considerably high rate of interest. Moreover, they further encouraged cash
deposits by their customers by offering them a part of the profits earned on the
money. Thus began the “issue” and “deposit” banking of modern times. Some
of the enterprising goldsmiths issued checkbooks for the attraction of their
customers, and thus another important step in the evolution of banking was
taken.
In 1672, however, English banking faced a great crisis when Charles- II
borrowed huge sums of money from the goldsmiths and later refused to pay
them back. Therefore, a number of goldsmith- bankers formed themselves into
a corporation in 1695, known as the Bank of England. This bank lent
1,200,000 pounds at 8% interest to William- III, who in return, allowed a
number of privileges to the bank, specially the right to issue notes payable to
bearer on demand up to the amount of this loan. This was known as fiduciary
issue, not covered by gold.
By the year 1700, the Bank of England was not only issuing notes but was also
conducting accounts for customers. Being a joint stock bank by charter, its
directors were conducting the business like that of limited companies.
In 1854 the joint stock companies Act opened an era of corporation/ and the
limited liability Act 1855, restricted the liability of shareholders of a limited
company to the amount of the successfully paid- up value of the shares held by
them. In the succeeding years, joint stock banks became very common either
by absorption of private banks or amalgamation amongst joint stock banks
themselves. Thus in 1918 came into being eleven clearing Banks of today.
In 1946, the Labor Government nationalized the Bank of England and
transferred the existing stock to the nominee of the British treasury, and
8
Chapter-2 Evolution of Banking
empowered the crown to appoint its Governors, deputy Governors and
Directors. The other shareholders of the bank were given in exchange, three
percent long term Government stock, thus keeping the holders content and
happy, as they were getting the same return as before.
In 1955 the British banks made a departure from traditional banking by
undertaking hire- purchase finance for companies buying industrial plants and
machinery, and took interest on hire-purchase finance. The percentage of
interest was so high that a number of companies became subsidiaries of the
lending banks3”.
3.3 EVOLUTION OF BANKING IN PAKSITAN
On 14th August 1947, the partition of the sub-continent came into reality and a
new Muslim country with the name of Pakistan came into being. At this
crucial time, the new country was facing a number of problems including the
shortage of financial institutions.
“At the time of independence, the areas, now constituting Pakistan were very
rich in producing various crops and other agriculture Products. There were
very nominal industries and those industries too were in very bad shape but as
far as the commercial banking facilities are concerned, they were fairly well,
because there were 487 offices of scheduled banks for providing banking
facilities to this area.
For a new country like Pakistan, facing so many problems and having limited
resources, it was very difficult to run its own banking system immediately.
Therefore in accordance with the provision of Indian Independence Act of
1947, an expert committee was appointed to study the issue.
3. Ibid p-3
9
Chapter-2 Evolution of Banking
The committee recommended that the Reserve Bank of India should continue
to function in Pakistan until 30th September 1948, so that the problem of time
and demand liability, homage, currencies, exchange etc. be settled between
India and Pakistan. It was also decided that Pakistan would take over the
management of public debt and exchange control from Reserve Bank of India
on Ist April 1948, and that Indian notes would continue to be legal tender in
Pakistan till 30th September 1948. The Hindus residing in the territories now
comprising Pakistan started transferring their assets to India after the partition
of sub- continent and the banks also followed the same move in order to push
the new state into chaos. By 30th June 1948, the number of offices of
scheduled banks in Pakistan declined from 487 to only 195.
At this time there were 19 foreign banks with the status of small branch offices
and only two Pakistani institutions i.e. Habib Bank, and the Australasia Bank.
To rebuild the confidence of the people in these banks, the then Government
promulgated the banking companies ordinance, 19474”.
Pakistan was further pushed into trouble when the imperial bank of India
closed down most of its offices in Pakistan and rejected to accept the token
amount of Government of Pakistan securities. Such circumstances necessitated
the control and management of banking and currencies in Pakistan.
“Government of Pakistan inaugurated the State Bank of Pakistan on July
1,1948, after the State Bank of Pakistan order was promulgated on May
12,1948. In order to bring the situation under control “As the central bank of
the country. The state Bank of Pakistan addressed itself with the equally
urgent task of creating and developing the Baking system of the country. To
achieve this goal, it provided every help and encouragement to Habib Bank to
expand its network of branches and also recommended to Government, the
4 . Ibid. P-17
10
Chapter-2 Evolution of Banking
establishment of a new bank which could serve as an agent of the State Bank
of Pakistan in areas where State Bank branches are not present. As a result, the
National Bank of Pakistan came into being in 1940 and by 1952 it became
strong enough to take over the agency functions from the Imperial Bank of
India. In order to develop sound banking and weed out weak institutions, the
Banking companies (control) Act was promulgated in 1949, empowering the
State Bank to control the operations of banking companies in Pakistan. Further
The State Bank of Pakistan limited the opening of new branches by foreign
banks in coastal towns or in big cities from where trade was being carried out
with foreign countries, while Pakistani banks were encouraged to open as
many branches as possible within the country5”. In order to broaden the scope
of banking system in Pakistan, The State Bank of Pakistan also helped in the
establishment of specialized credit institutions in the fields of agriculture and
industry. At the end of June 1958, the number of branches of Pakistani banks
increased from 195 to 307 and, the number of scheduled banks increased to 36
by June 1965. The following figures reflect the rapid development of banking
system in Pakistan from 1948 to 1993.
1948 1993 % increase
Bank Deposit 880m 290,000m 32854
Bank Credit 200m 21,000m 10500
Offices of scheduled
banks
81 7,100 8665
During the five years from 1960 to 1965, the number of scheduled bank
branches rose form 430 at the end of June 1960, to 1591in June 1965. Two
new banks were formed i.e. Commerce Bank and Standard Bank. A dramatic
5 . Ibid P-19
11
Chapter-2 Evolution of Banking
change in Pakistani banking system took place when in 1974 the Government
of Pakistan nationalized all commercial banks incorporated in Pakistan. There
were 22 scheduled banks with 3525 branches at the end of December 1973.
The nationalization of banks in Pakistan has brought a new era of development
and growth. It has taken a completely new turn with the induction of interest
free Banking system in January 1981.With the passage of time, the
Government of Pakistan realized that the national economy was being
dominated by public sector, areas such as production, trade and finance were
over regulated. This resulted not only in chronic budget deficit, leaving not
much for physical and social infrastructure but also led to developing such
conditions which could not be changed without the privatization of the
nationalized and public sector. Therefore in order to meet the need of the time,
the Government of Pakistan introduced comprehensive economic reforms
aimed at deregulation of trade, commerce, industry, banking and finance, so
that the role of the public sector in industrial and commercial activities is
reduced and social sector activities are increased. In order to deregulate the
financial sector under these reforms, a program of privatization of public
sector banking and financial institution was started and various governing laws
were amended in 1990 in which strict criteria for selection of good
entrepreneurs as investors was also drawn.
Besides these undertakings, private sector was not only invited but also
encouraged to set up commercial banks and financial institutions in Pakistan.
As a result, a number of banks Modaraba and Leasing companies came into
existence and are now actively operating in private sector. It is hoped that this
polish of liberalization and privatization of financial institutions will make
way for the economic development and professional efficiency in Pakistan.
12
Chapter-3 History and Growth of UBL
HISTORY AND GROWTH OF UBL
Commercial banks play a role of vital importance in the economic growth of a
country. Banks mobilize idle savings of public and provide finance to various
sectors of economy. In spite of vital importance, there was shortage of
branches of commercial banks in the areas of sub-continents, which now
constitute Pakistan. When Pakistan got independence, there were only 487
branches of commercial banks, which were further reduced to 195 as at
30/09/47 due to shifting of a number of branches to India or U.K. The Reserve
Bank of India, which was made responsible to exercise control over banking
sector in both the dominions, did not perform its duties properly in Pakistan.
The State Bank of Pakistan was established on 01/07/1948. After the
establishment of State Bank of Pakistan, banking expansion got momentum
but real progress was not achieved until 1959, when a dynamic banker Mr.
Agha Hassan Abedi conceived the idea of opening a bank different from
others. His dream was translated into reality on November 07/1959 when first
branch of UBL was opened at Macleod Road Karachi (now known as I.I.
Chundrigar Road).
This achievement was secured after passing through many problems and after
completion of a lot of legal formalities. UBL was established on 24-07-59 as a
public limited company with registered office at I.I. Chandrigar road Karachi.
The authorized capital was RS. 20,000,000 issued, subscribed and paid up
capital was. RS. 10,000,000 divided into 1,000,000 shares of RS. 10each.
3
13
Chapter-3 History and Growth of UBL
The first Board of Governors of UBL consisted of the following members;
1 Mr. Ismail Ibrahim Chandrighar Chairman
2 Mr. Muhammad Shafiq Saigol Managing Director
3 Mr. Muhammad Rafiq Saigol Director
4 Mr. M.Bashir saigol Director
5 Mr. A. Razaq Dada Director
6 Mr. Mian M.Yahya Director
7 Mr. M. Saeed Saigol Director
8 Mr. Agha Hassan Abidi Director and General Manager
Presently UBL is managed by a board of directors including one president, 4
directors from UBL, 1 from Pakistan Banking Council and one from ministry
of finance.
The names and designations of present top management include;
1 Mr. Amar Zafar Khan Chairman and president
2 Mr. Afzal H.Mufti Director
3 Mr. Iltaf M. Saleem Director
4 Mr. Iftikhar Allahwala Director
5 Mr. Munnawar Hameed Director
6 Mr. Syed Shamsul Haq Director
7 Mr. Afaq Tiwana Director
8 Mr. Abdul Ghafoor Corporate Secretary
Since inception, UBL provides personalized, efficient and courteous services
to its customers and has achieved dynamic progress in a short span of time.
14
Chapter-3 History and Growth of UBL
UBL has achieved the distinction of earning profit in very first year of its
operation. UBL also introduced many remunerative schemes for its depositors
and introduced computer services for the first time in the banking history of
Pakistan. UBL gives advance finances to small, medium and large industries,
commercial establishments, agriculturists, construction companies and other
needy persons. UBL offers computerized services to intending Hajis free of
cost. UBL collects Electricity, Gas and Telephone bills from public and issues
TV licenses on behalf of Pakistan Television Corporation. It also offers
evening banking and lockers facilities at its selected branches. Over 100
branches deal in foreign exchange where facilities to importers, exporters,
travelers and other persons are being given.
UBL arranges prompt payment of inward remittances. Similarly for issues of
outward remittances minimum time is taken. Other auxiliary services such as
unicorn, inland travelers checks, school banking and collection of checks and
other documentary bills drawn on its station drawees are offered.
“The names and tenure of various presidents of UBL after nationalization are
given here under1”;
1 . Daily Dawn “ Amar Zafar Kahn appointed as new president of UBL”, Lahore, Jan 15th
2000, P-11
15
Chapter-3 History and Growth of UBL
S.N
o.
Name of Presidnet From To
1 Mr. Mushtaq Ahmad Khan Yousafi 01/01/74 31/12/76
2 Mr. Kh. Zai Ud Din 01/01/77 31/12/79
3 Mr. Sami 01/01/80 01/02/82
4 Mr. M. Sadiq Dar (Acting president) 04/02/82 31/12/82
5 Mr. Tajammal Husain 01/01/83 15/07/88
6 Mr. Amjad Ali 16/07/88 04/02/89
7 Mr. Maqbool A Soomro 7/02/89 18/07/89
8 Mr. Salim Malik 19/07/89 01/08/90
9 Mr. Maqbool A Soomro 01/08/90 15/05/93
10 Mr. Aziz ullah Mamon 15/05/93 4/08/96
11 Mr. Shafi Arshad 4/08/96 14/07/97
12 Mr. Zubayr A Soomro 14/07/97 15/01/00
13 Mr. Amar Zafar Khan 15/01/00
4.1 NUMBER OF BRANCHES
UBL has a large network of branches, which extends to the remotest areas of
the country. In December 1983, there were 1623 branches whereas in 1974 it
had only 1238 branches and in December 1999 there were 1417 branches.
16
Chapter-3 History and Growth of UBL
Overseas Branches
UBL has been very active in increasing its overseas branches network. The
first foreign branch was established in London in 1963. Now UBL has
branches in Bahrain, Qatar, Saudi Arabia, United Arab Emirates, Yemen Arab
Republic, UK, Switzerland, Egypt, Oman and The United States. These
branches are playing a significant role in channeling home remittances and
foreign trade of Pakistan.
Subsidiaries
UBL has two subsidiaries, namely,
United Bank of Lebanon & Pakistan
United bank A. G. Zurich.
United bank of Lebanon and Pakistan was established in 1968, 1st had a paid
up capital of dollars 379,000, deposits of dollars 125,978, advances of dollars
1983,313 and six branches as on December 31,1983.
United Bank A.G. Zurich also was established in 1968 and had a paid –up
capital of dollars 2722 thousand, deposits of dollars 5827 thousand and
advances of dollars 5538 thousand as on December 31, 1962.
Joint Venture
UBL has two ventures, Commercial Bank of Oman limited, established in
1975. It had a paid up capital of dollars 8,700 million, deposits of dollars
7,333 million, advances of dollars 73.993 million and 11 branches as on
December 31,1962.
And United Saudi Commercial Bank Limited (Saudi Arabia), established in
1982.
17
Chapter-3 History and Growth of UBL
4.2 SERVICES OFFERED BY UNITED BANK LIMITED
Islamic Banking
The interest free banking system was introduced on January 1, 1981. Since
then, UBL has played an important role in the successful operation of this
system. For this purpose, it has established a special division, The Islamic
Banking Cell. The sincere efforts of UBL as making Islamic Banking
successful is proved by the fact that it declared the highest rate of profits for
PLS deposits for the first half year of 1983. This has been due to a sound
planning of all its Islamic Banking efforts.
The bank has provided capital to businessmen and industrialists on the basis of
“Mudaraba and Musharika. Additionally the bank has started interest- free hire
purchase and lease schemes for financing purchase of buses, trucks and
industrial machinery on installments. The bank also provides. “Qarz-e-Hasna”
to needy and deserving students.
UBL has also played important role in Islamic banking and successful
operation of Non - interest based system of banking.
Agriculture
UBL has contributed in full measures to the development of agriculture. It has
always exceeded, by a considerable margin, the targets given by the State
Bank of Pakistan. UBL has also provided loans for a variety of agricultural
activities including tractors, tube-wells, fertilizers, insecticides, poultry
farming, bio-gas plants etc. The banks officers who are qualified agricultural
graduates not only provide loans at the doorsteps of the farmers, they also
render technical assistance to them. To maintain constant liaison with the
farmers, they have been provided with motorcycles.
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Chapter-3 History and Growth of UBL
Financing of Small Business
To meet the goals of social justice, the bank has zealously participated in the
small loans scheme. It has always tried to exceed the targets fixed by the state
Bank. A full- fledged department catering the needs of small businessmen is
functioning. To improve its operations, the bank has made arrangements for
overseas training of its staff.
The bank is also participating in the dollars 30 million IDA credit, which will
be provided to small industrialists.
For training its staff, a staff collage was established at Karachi in 1994. Now
there are three such colleges at Karachi, Lahore and Rawalpindi where the
officers and staff are provided extensive training. Furthermore for training
senior officers, a UBL school of Banking has been set up at Karachi. Senior
bankers and management experts provide training to the executives and senior
officers of the bank.
Research Department
UBL was the first commercial bank in the private sector to establish a full-
fledged Research Department. Prominent economists of the country have been
acclaimed both at home and abroad. Not only does this research provides
useful and cogent studies of economic development in Pakistan and abroad, it
also assists in the managerial decision making process.
The Research Department is publishing “Economic Matters” every month
since 1967. It was recently upgraded to UBL Economic Journal. In addition,
the department also brings out the UBL Home Journal.
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Chapter-3 History and Growth of UBL
Computer Services
UBL was the first bank to introduce computers. The Computer Division was
established in 1968. Presently, UBL has Computer Department at Karachi,
Lahore and Rawalpindi. Many branches have been fully equipped with
computers. . The Computer Division prepares weekly, monthly, quarterly, bi-
annual and annual reports for top services to many Government, Semi
Government and private institutions.
Service to Hajis
For providing prompt and efficient services to the intending Hajis who come
to UBL every year, the bank has introduced the most modern system of
electronic banking which permits all formalities to be completed within a short
time.
This year, UBL received the greatest number of applications from customers
for Hajj, which shows the customers faith in UBL.
Auxiliary Banking Service
The bank provides a number of auxiliary services such as credit cards,
traveler’s checks and school banking.
Collection of Utility Bills
UBL also collects electricity, gas, and telephone bills from the public on
behalf of the respective organizations. The bank also introduced the bills
collection facilities in selected branches in the evening hours for the
convenience of general public.
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Chapter-3 History and Growth of UBL
Issuance of TV License
UBL also collects TV License fee on behalf of Pakistan Television
Corporation and issues TV Licenses to the general public.
Sports
UBL was one of the first banks to patronize sports. Senior executives at the
highest level supervise the sports activities.
The bank has established a special department to organize its various sports
activities. It has provided parsonage to leading sportsmen. Many outstanding
test players and national players have been on its teams. The bank has won
various trophies in hockey, cricket, badminton, table tennis, rifle shooting etc.
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Chapter-4 Organizational Structure of UBL
ORGANIZATIONAL STRUCTURE OF UBL
As stated before, a Board of Directors consisting of one President, 4 directors
from UBL, one from Pakistan Banking Council, one from Ministry of Finance
and an additional one who is the secretary of the board manages United Bank
Limited. Hence the board of directors is an 8-member team, which manages
the overall operations of the bank.
Under the board of directors is the executives committee consisting of 7
members including the president/chairman of UBL and the Secretary of UBL.
These members of the Executive Committee, except Secretary, are in-charge
of many divisions. These members are all Senior Executive Vice Presidents
(SEVP). There are 20 divisions, which have their own heads who are Senior
Executive Vice Presidents (SEVP), Executive Vice Presidents (SVP) or Senior
Vice Presidents (SVP). The SVEP of international division manages the
overseas filed operations of the 26 UBL branches located in 10 different
countries.
In the Domestic field operations, UBL has established its presence all over the
country. Its filed operations are one of the most extensive among the leading
banks in Pakistan. Every province has a Provincial Chief, usually an SEVP,
who overlooks the operations of UBL in that particular province. Under the
provincial chief is the General Managers who is either EVP or SVP. The
general managers are responsible for either a number of regional areas or in-
charge of various provincial departments such as Administration, Recovery,
General inspection, Loan etc. The number of general managers depends upon
the complexity and extensiveness of the field operations in the province.
Below the general manager are the circle executives who are senior vice
president (SVP) or Vice-Presidents (VP).
4
22
Chapter-4 Organizational Structure of UBL
The circle executives are in-charge of geographical circle areas such as
Islamabad circle, Peshawar North circle, South circle etc. In each circle area,
there are a number of zones such as Peshawar Cantt Zone, Peshawar city Zone
etc. There is Zonal Head for every Zone who is either a Vice President (VP) or
Additional Assistant Vice President (AVP).
In each Zone, there are a number of bank branches, which are managed by
branch managers who are Grade-1or 2 officers. In each branch, in turn, there
are a number of graded officers and non-graded employees (e.g. peon and
gunman).
In the UBL organization, the employees are promoted to higher ranks. In
Grade-1, it includes the AVP, VP, SVP, EVP, and SEVP. The difference in
salaries and power is primarily due to seniority in the organization and
competence.
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Chapter-4 Organizational Structure of UBL
UBL ORGANIZATION CHART
Senior Executive Vice–President (SEVP)
Senior Vice President(SVP)
Vice President (VP)
Additional /AssistantVice President
(AVP)
Grade -1
Grade -II
Grade -III
Clerk, Cashier etc
Non –Clerical staff
Executive Vice President
(EVP)
President
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Chapter-6 Departmentation
DEPARTMENTATION
6.1 ACCOUNTS DEPARTMENT
This department deals with the internal accounts of the bank. The only Book
maintained here is the cashbook. The summary book and main ledger are
maintained through the computer.
The function of cashbook is to balance the daily transactions. At the end of the
day this department receives cash position from the cashier. This position
shows opening and closing balance.
TYPES OF ACCOUNTS:
There are three types of accounts:
Current Accounts
Saving Accounts
Fixed Accounts
A) CURRENT ACCOUNT:
In current account, there is no restriction on the account holder for the
withdrawal of money. He can take as much money as he wants and no profit is
given on this account. It can be further classified into the following types:
* Individual Account:
Individual account is opened in the name of a single person. The person in
whose name is it opened can only operate it. The bank doesn’t pay any interest
on it.
* Joint Account:
6
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Chapter-6 Departmentation
Two or more persons open the joint account and the bank follows their
instructions for the conduct of the account.
* Proprietorship Account:
A partnership firm is a business unit whose ownership and management are
vested in one person. This individual assumes all risk of loss or failure of the
enterprise and receives all profits from successful operations.
* Partnership:
Partnership is an avocation of two or more persons who have agreed to share
the profit of a business managed by all or by some of them on behalf of all. A
deed is prepared on the stamp form by the partners approved by Sub-Registrar
and presented to the bank. The bank follows this deed during the conduct of
account. This is, when the partnership is registered.
In case of unregistered firm, the bank takes the instruction from the party at
the bank on account opening form.
* Limited Companies:
There are two types of limited companies;
a. Private Limited Company
b. Public Limited Company
a) Private Limited Company:
The shareholders of limited company are called directors. The board of
directors decides the bank in which they should open their account and the
amount to be kept in current account. The bank requires the following
documents from the board of directors;
- The Article and Memorandum of Association
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Chapter-6 Departmentation
- The Certificate of Incorporation
- Resolution of Board of Directors
- List of Directors
b) Public Limited Company:
The public limited company, not only requires the above-mentioned
documents, but in addition to it, it also needs a certificate of commencement
of business.
Power of Attorney: Power of attorney is an instrument in writing in which
one person authorizes another to do any lawful acts on his behalf. The
proprietor can give authority to any person to handle his account in his
absence. The owner of the form writes deed on the stamped form. Oath
commissioner attests it. The bank follows all the instructions given on the
stamp form.
B) SAVING ACCOUNT
In the saving account, the client receives certain profits on his account. The
saving accounts are of two types;
Individual account: It is opened and conducted by a single person.
Joint account: It is opened and operated by two or more persons. The account
holder regarding handling of the account gives instructions.
C) FIXED ACCOUNT
In the fixed account “ the deposits that can be withdrawn after a specified
time are referred to as fixed or term deposits”. The account holder keeps a
specified amount of money for a definite period of time. The amount
deposited is not withdraw able by checks and after the maturity of the account,
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Chapter-6 Departmentation
the account holder receives the actual money along with return at rate,
previously agreed upon.
A single individual, partners and companies, too can maintain such accounts
as well. The period for which the bank keeps these deposits ordinarily varies
from three months to sixty months in accordance with the agreement made
between the customer and the bank.
6.2 REMITTANCES DEPARTMENT
This dept is concerned with transfer of money from one place to another
place. Remittance can take place in three different ways.
a) Mail Transfer
When a customer requests the bank to transfer his money from this bank to
any other bank or the branch of the same bank in the city/ outside the city or
outside the country, the first thing he has to do is to fill an application form in
which he states that I want to transfer the money from this bank to another
bank. If the customer is the account bolder of bank, then the bank will debit
his account. The concerned office will fill the different forms to make the mail
transfer complete. Three forms used for this purpose are listed below;
Debit voucher
Credit voucher
Mail transfer register
If the customer is not the account holder of bank, then firstly he has to deposit
the money and then the above said procedure will be adopted to transfer his
money.
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Chapter-6 Departmentation
b) Telegraphic Transfer
This type of transfer is simple. After filling the application form, the
concerned officer fills the telegraphic form. This telegram is sent to the
required bank. Which on receiving it immediately makes the payment to the
customer and afterwards the vouchers are sent to the bank by ordinary mail.
c) Demand Draft.
DD is just a check and is issued when the customer wants to take the draft
personally. The idea behind it is that as the cash is not safe to be kept along
and a check in the shape of a draft is safer and one can easily get cash by
presenting it in the bank, on whose favor it has been made.
Draft is only issued when the customer is known to the bank and the bank has
the confidence that the customer will not do anything wrong with the draft.
For the preparation of a draft, first of all customer has to fill an application
form, then the concerned officer fills the following before delivering the draft
to the customer. The forms filled for this purpose are as follows;
Demand draft register
Credit vouchers
6.3 DEPOSITS DEPARTMENT
The main economic function of the commercial bank is to receive surplus
balances of individuals, firms, public institutions and to honor check drawn up
to it. The funds deposited with the commercial banks are classified under four
main heads.
a) Current or Demand Deposits
In this type of deposits, the depositor at any time by presenting a check can
draw his money from the bank. People keep some of their deposits in current
account in order to have ready command over money. No interest is given on
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Chapter-6 Departmentation
current deposits, because it is subject to transfer or cashing by check at sight.
The bank charges commission on the account, which is called bank charges.
b) Saving Deposits
This deposit refers to the deposits, which are kept to meet the customer and
unexpected outlay or to safeguard financial respectability. The bank
undertakes to repay the money on demand up to a certain limit fixed by the
rules of the bank. The bank pays interest to the customers on saving deposits.
The customer has to give a notice to the bank about two weeks in advance for
withdrawal of large amounts.
c) Fixed Deposits
Fixed deposits are those, which are repayable only after the expiry of the
stipulated period i.e. from three months up to sixty months. The rate of interest
depends upon the length of the period. The rate of interest on fixed deposits is
higher than saving account, because the bank can safely utilize these deposits
for a certain period. Customer is allowed to borrow the required amount,
which should not exceed his fixed deposit. The bank charges one or two
percent higher rate of interest than the profit allowed to him at his fixed
deposit. The bank issues a receipt against the fixed disposition stating the
amount and the time of expiry to the customer. There is no paying book or
passbook or checkbook issued to the depositor.
d) Call Deposits
It is a type of bank guarantee on behalf of the depositor given at call. In this
case, Security Deposit Receipt (SDR) is issued by the bank at the instructions
of the depositor, confirming that amount of the SDR is held by the bank, to be
paid whenever called upon to do so by the beneficiary named in the SDR.
6.4 ADVANCES DEPARTMENT
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Chapter-6 Departmentation
It is the loan function, which produces the major portion of banks’ income,
and as such it is one of the major areas of professional bankers’ concerns and
attention.
A bank generally deals in following areas;
Agricultural finance
Commercial finance
Industrial finance
Export finance
Import finance
In addition to the above-mentioned broad areas, there are loans available to
small size businessmen, construction companies etc.
In UBL, advances department is responsible to deal with following cases;
1. To handle all the cases of short and long term loans.
2. To process all the cases concerned.
3. To forward the cases for approval and consideration to the higher
authorities.
4. To deal with the borrower directly.
5. To implement the disbursement of the loan.
6. To give feed back to higher authorities in advance.
UBL advances loans in the following manners:
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Chapter-6 Departmentation
a) By Cash Credit:
In this form of lending, the bank lends money to the borrower against a
tangible security. The total amount of the loan, which is given, is not paid in
one installment. The borrower has to pay interest on the amount borrowed.
Cash credit is the favorite loan for large commercial and industrial concerns,
on account that the customers need not to borrow at once the whole amount he
is likely to require, but can draw such amount as and when required.
Cash credit is obtained either by Hypothecation or Pledge.
Peculiarities of Hypothecation
1) Custody of the stock remains with the customer.
2) Bank lien on the stock.
3) Stock hypothecated must be insured against fire etc.
4) Customer/ party must submit the stock record on monthly basis.
5) Frequent stock verification may be made by UBL
6) Bank may sent officers or staff for surprise verification.
Peculiarities of Pledge
1. Stock/ Goods are pledged with bank under lock and key.
2. Goods/ stock must be duly insured against fire and burglary.
3. On monthly basis stock report has to be prepared by borrowers/ UBL.
4. Delivery of goods is made against cash payment.
b) By Discounting Bills of Exchange:
It is another method of advancing loans to borrowers. The holder of bills is
paid an amount equal to the face value of the bill after deducting interest at the
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Chapter-6 Departmentation
market rate for the period the bill has to mature. Interest in this type of loan
can be charged as running finance and demand finance.
C) By Over Drafting:
This facility is given to regular, reliable and well- established customers. The
bank charges interest on the extra money, which the borrower takes.
When a customer requires temporary accommodation, he may be allowed to
overdraw his current account usually against collateral security. From the
customers point of view this agreement like cash credit is advantageous, as he
is required to pay interest on the amount actually used by him.
There can be temporary, secured and clear overdraft.
FIM OR FINANCE AGAINST IMPORTED MERCHANDISE
FIM is short-term facility given to such importers who are not in the position
to collect their documents due to unavailability of funds for time being or lack
of finance. Against FIM, amount will be adjusted within three months after the
lapse of six months. In FIM, UBL deals in documents.
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Chapter-6 Departmentation
FIANCE FOR EXPORT MERCHANDISE
It is facility granted to the exporter, it is pre-shipment facility. The exporter
applies for such finance to bank by showing Export L/C. or some export order
from foreign countries excluding Israel. The bank gives him loan, which he
would utilize for the execution of the export order.
PROCEDURE OF APPLYING FOR LOANS
Any customer who applies for loan should have an account (usually current
account) with the UBL branch concerned. That account must be in running
position.
When approval comes, bank gives terms and conditions to the party. Bank
does not advance 100% loan against a security, rather a 30% margin is
deducted from all loans. The borrower has to provide some important
documents.
a. Two personal guarantees
b. Charge forms
c. Confidential report
d. NIB s’ non interest banking
Charge form is taken from party for if it turns bankrupt, bank goes to court of
law then this agreement helps.
6.5 FOREIGN EXCHANGE DEPARTMENT
In modern banking system, foreign exchange department plays very crucial
and important role from every aspect. It is parallel banking with general
banking with an additional function of import and export business controlled
by State Bank of Pakistan. Rules and regulations are framed by state Bank of
Pakistan in the form of manuals.
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Chapter-6 Departmentation
Foreign exchange department under SBP regulations also carries out
international banking of UBL. Foreign exchange is being controlled by SBP.
No transaction can be affected without permission of SBP, under foreign
exchange regulations Act 1947 and notification issued there under. Exchange
control department of State Bank of Pakistan is responsible for day-to-day
administration of exchange control.
All the transactions shall be done at rate authorized by SBP. For this purpose,
US dollar has been fixed by SBP and the rates of other currencies are
calculated in accordance with the formula approved by SBP and as published
daily by the Foreign Exchange Rate Committee in Karachi. Head office
ensures that the branches receive the rates published by Foreign Exchange
Rate Committee on the same day.
The foreign exchange department provides the following services;
6.5.1 Foreign Currency Accounts
Foreign currency in UBL can be opened in 4 major currencies of the world i.e.
US dollar $, Japanese Yen, German Mark, DM and Pound Sterling. Only
authorized branches of UBL can deal in foreign currency account.
Pakistani citizens and foreigners both can open foreign currency account by
introduction and following the procedure required for general accounts with
one exception for foreigners that they will have to submit a copy of their
passport. The account may be personal or joint.
Amount deposited in foreign currency account must be in four currencies,
which were mentioned earlier. When the customer will withdraw the money
he will receive the amount in the same foreingn currency. Profit will also be in
the same currency.
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Chapter-6 Departmentation
There are two types of foreign currency account;
a) Current account
b) Saving account
A) Current Account
On current account, no profit is given to the account holder. This account is
exempted from zakat, income tax and wealth tax. Worldwide remittances
(inside and outside) facility is given to customer. Cash travel checks, foreign
exchange bearer certificate, and coming for customer can be deposited in his
account.
Similarly account holder can shift the amount or any part thereof to foreign
countries through exchange remittances service.
B) Saving Account
On saving account, a handsome profit is paid to the account holder. On saving
account, profit is paid to the customer in the same currency in which he had
opened the account. This account is also exempted from zakat, income tax and
wealth tax etc.
Saving account can be opened with an amount of $ 100 equivalent in other
three currencies. The facility of inward and outward remittance is also granted
to the customer. Profit is paid on monthly product basis.
6.5.2 Sale and Purchase of Foreign Currency
UBL is an authorized dealer of State Bank of Pakistan. It can sell and purchase
foreign currency. UBL usually involves sale and purchase of US dollars,
Japanese yen, Pound Sterling, German Mark, Saudi Riyal, and UAE Durham.
Daily exchange rate by SBP from ANZ Grindlays Bank Karachi is sent to all
the branches authorized in foreign exchange. Daily sale and purchase of
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Chapter-6 Departmentation
foreign currencies is done according to that rate sheet issued by SBP on daily
basis. Sale and purchase rates of foreign currency are different.
The purchase of coins is avoided, only notes are purchased. Only those foreign
currencies are purchased for which resale to customer is possible. And only
those persons, who have passport, can sell and purchase foreign currency to or
from UBL. Foreigners can also sell foreign currencies by showing their
passport.
There are 5 rates of foreign currencies:
1. For import
2. Cash purchase
3. Cash sale
4. Travel check purchases
5. Foreign currency
It is the policy of UBL to involve only in the sale of hard currencies i.e. those,
which are easily accepted. Head office of UBL has given certain limits to each
authorized branch about the custody of foreign currency. If the amount
exceeds this limit, the branch must transfer the cash to feeding branch or SBP.
All the authorized branches of UBL must submit following reports about
foreign exchange business;
1. Report to general manager office
2. Monthly business report to SBP
3. Monthly report to head office
6.5.3 Remittances in Foreign Exchange
As we know that the money of one country is not legal tender in other
countries. The monetary device, which has been evolved, for all international
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Chapter-6 Departmentation
payments is the foreign exchange from the exporter and others who have it for
sale and sell foreign currency to importers and others who need it in their own
countries. A transfer from a bank account in the debtor’s country to the
creditor’s country affects the international payments.
Two branches of the same bank or of different banks involve in foreign
remittance. One is called remitting branch or bank and the other is called
receiving branch or bank. In foreign currency, SBP has given general
permission to authorized dealers in foreign exchange including UBL to affect
remittances for specific purposes without referring it to (SBP) for approval i.e.
remittance on account of education subscription, books and periodical of
technical nature.
Remittance can be done in following ways;
1. Telegraphic Transfer (TT)
2. Mail Transfer (MT)
3. Foreign Demand Draft (FDD)
6.5.4 Advance in Foreign Exchange
UBL gives the facility of loan on prime currency scheme in Pakistani rupees.
In other words we say that loan on the basis of foreign currency given only in
Pakistani rupees and not in foreign currency. UBL gives running finance
demand facility to customer when an account holder applies for loan on the
basis of foreign currency account. UBL will keep an eye on his deposits or as
per the sanction of competent authority will allow advance to the customer.
IMPORT EXPORT AND L/C
As import and export business is very risky. The importers want the surety of
goods to be delivered to his prescribed destination while exporter wants surety
of the money to be reached to his prescribed bank. So, with a view to
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Chapter-6 Departmentation
overcome such difficulties a system of L /C is designed and its operation is
controlled under the Article of the Uniform Customs And Practices for
documentary credits as adopted by The Council Of International Chamber Of
Commerce and enforced with effect from Jan 1983.
Different banks are involved in foreign exchange transaction of export and
import.
A) Issuing Bank
It is that bank which opens letter of credit and sends it from where import is to
be made. Issuing bank may send L/C to one of its branches or some agents or
any other bank of the country.
B) Advising Bank
It receives the letter of credit send by the branch of issuing bank or recognized
agent in this connection. Advising bank advises the exporter about L/C so
received.
C) Negotiating Bank
Negotiating bank is that bank which conducts negotiation from exporter’s
side. It may or may not be advising bank. The documents are negotiated as per
the terms of L/C
D) Reimbursing Bank
This is the bank, which reimburses the payment to the negotiating bank. It
may be a special bank or issuing bank.
LETTER OF CREDIT
A letter of credit is a document issued by the importer country’s bank
authorizing the exporter country’s bank to honor the checks of the exporter to
the extent of the amount mentioned there in. In this way, a substitute bank
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Chapter-6 Departmentation
enjoying good faith and credit for that of an importer who is comparatively
unknown protects the exporter. The importer is also protected as the letter of
credit specifies in close details all the things an exporter must do to receive
payment.
TYPES OF LETTER OF CREDIT
Irrevocable Letter of Credit
Irrevocable L/C is one which can’t be cancelled once decided by the parties
and in which the issuing bank gives a lasting undertaking to accept and in due
course to pay bills drawn up to it provided that the exporter fulfils the terms
and conditions stipulated in the letter relating to documents, insurance etc, etc.
Revocable Letter of Credit
This L/C can be modified or cancelled by the issuing bank at any time without
any obligation on its part. This letter is usually not acceptable to the
businessmen.
Unconfirmed Letter of Credit
In unconfirmed L/C, the bank through which the credit is negotiated does not
give any guarantee to the exporter that the issuing bank will honor the bills
drawn.
Clean Letter of Credit
If there are no conditions attached to the bill and the issuing bank makes
payment up to the credit limit, the letter is called “ A clean letter of credit”
OPENING OF L/C
This mechanism of financing trade through letters of credit is quite simple.
The importer or buyer will contact the seller in foreign country for the
purchase of particular goods.
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Chapter-6 Departmentation
The importer will then submit an application to his bank for the issuance of an
individual letter of credit. The bank supplies the form on which the buyer
applies for a letter of credit.
This form contains all the necessary details of course, the description of
merchandise, port of shipment, port of unloading, the document against which
the bank is to honor the draft and the total value of the goods. When the buyer
bank is called upon to honor the draft, the bank will concern it self only with
the features of the contract of sales.
The letter of credit can be opened by mail or by cable. When the letter of
credit is opened by mail, the buyer bank sends the letter of credit and the
carbon copies of the letter to the importer. If an importer directed the bank to
open letter of credit by cable, the buyer’s bank sends a cable (Telex) to the
corresponding bank in the foreign country with request to notify the exporter
of L/C and terms and conditions laid there.
Following documents must be attached with L/C;
1. Application of L/C.
2. Performa invoice of sending foreign company.
3. Membership certificate of chamber of commerce or association.
4. Insurance certificate.
5. IBC charge form.
Negotiation of L/C Documents
Negotiation will take place in following manners;
1. The seller sends the documents evidencing the shipment to the bank
where the credit is available, accompanied by a draft drawn on the
buyer, or on any other drawer specified in the credit at sight or at a
tenure as specified in the L/C.
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Chapter-6 Departmentation
2. After checking that the documents meet the credit requirements, the
bank may negotiate the draft. Negotiating by the issuing bank or any
other bank will be with recourse to the seller.
3. This bank then sends the documents and the drafts to the issuing bank.
Reimbursement is obtained in the per-agreement manners.
6.6 CLEARANCE HOUSE
A clearinghouse is an association of commercial banks, set up in a given
locality for the purpose of inter-change and settlement of credit claims. The
function of clearinghouse is performed by the central bank of a country by
tradition or by law.
In Pakistan, the clearing system is operated by SBP. If the SBP has no office
at a place, the National Bank of Pakistan (NBP) as a representative of SBP
acts as a clearing agent.
The mechanism whereby checks are exchanged in bulk and the cross
obligations of the banks are off set is now explained in brief.
Check as we know, is an effective method of making payments. When checks
are drawn on one bank of drawer, the mutual obligations are settled by the
internal bank administration and there arise no inter-bank debits from the use
of check. The total liabilities of the bank remain unchanged.
In practice, the person receiving a check is rarely a deposition of the check in
the same bank as the drawer. He deposits the check with his bank (other than
that of the drawer) for the collection of the amount. Now the bank in which the
check has been deposited, becomes a creditor of the drawer’s bank. The debtor
bank will pay his amount of the check by transferring it form cash reserves, if
there are no offsetting transactions. In the course of every day life, there is
large number of checks drawn on a bank, deposited in other banks. The banks,
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Chapter-6 Departmentation
on which the checks are drawn, become in-debt to the banks in which the
checks are deposited.
At the same time, the creditor banks receive large amount of checks drawn on
other banks giving claims of payment to them. It will be most uneconomical
and confusing if banks had to transfer cash for meeting each other’s liability.
The easiest safest and the most efficient way is to offset the net payment. This
facility of net inter bank payments is provided by the clearinghouse.
The representatives of the local commercial banks meet at a fixed time on all
the business days of the week. The meeting is held in office of the bank, which
officially performs the duties of a clearinghouse. The representatives of the
commercial banks deliver the cheques payable at other local banks and
received by them. Totals are also made of all the checks presented by or to
each bank. The difference between the total represents the net amount payable
to or by it. Banks keep two books regarding clearinghouse.
Onward clearing book. For the purpose of recording all the checks that are
received by the bank in the first clearing uses this. Details of checks are
recorded in this book.
Outward clearings book. This book uses outward clearing register for the
purpose of recording all the details of the checks that the bank has
delivered to other banks in first clearing.
44
Chapter-7 Financial Products of UBL
FINANCIAL PRODUCTS OF UBL
7.1 UNI CASH
Now a days carrying cash while going out of your home is very risky. Every
body wants maximum security while keeping his money in his pocket. People
make use of TC and various credit cards for this purpose. UBL provides such
facility through UNI CASH. The management of UNI CASH is carried out in
the following way.
Personal identification number
When a Uni-Cash card is issued to a customer, a unique number known as
Personal Identification Number (PIN) is also allotted to him/her. This is a 4
digits confidential number which when used in conjunction with the Uni-Cash
card enables the customer to avail the cash point service. To keep it secret
even from the bank staff, the PIN is generated and printed in a special manner
by the computer on pre-sealed, tamper proof PIN millers. These PIN millers
are designed in such a way that the PIN is only visible after the envelope is
opened by the customer.
Pin change
As an additional safeguard, customer can change his PIN number.
This means that he will allot himself different 4 digits secret number instead of
the one received by him in the pin miller. For this purpose, he may like to
select a number, which he finds easy to remember, but which any other person
cannot easily guess.
Card serial number
The customer will notice that some numbers and alphabets are embossed on
his Uni-Cash card. The first line obtains UNICASH CARD SERIAL
7
45
Chapter-7 Financial Products of UBL
NUMBER while the other line has customer’s name, account number and card
expiry Month/ Year.
Weekly withdrawal limits
The Uni-Cash card issued to customer carries a weekly withdrawal limit,
which applies to cash withdrawal, made from any of the cash point. This limit
is equal to initial amount deposited by him at the time of applying for his card.
Cash points
For customer’s convenience, a number of cash points are available in the
country. These machines are at customer’s service round the clock on all days
of the year. Uni-Cash card can be used in these machines. Besides cash
withdrawal, cash points would provide the following facilities;
6.7 Balance Inquiry Mini Statement
6.8 Pin Change
Card captures
Cash points will automatically capture card that have been duly reported as
lost or have been cancelled or have expired. Similarly if one fails to key-in his
correct PIN, in three repeated attempts, the card will be captured.
46
Chapter-7 Financial Products of UBL
Time out
In order to provide added security, UBL cash point has been programmed to
capture the card if the customer forgets to take it back after a transaction.
Similarly if customer forgets to take the cash within a present time limit, the
machine will also take it back. Normal time for recapture of the card/cash is
20 seconds.
Loss of card
In case, customer loses his UNI CASH card or the card is stolen, the matter
should invariably be brought to the notice of the bank personnel.
7.2 UNI SONA
This product has been designed to attract more and more savings. As inflation
in Pakistan is at a very high rate, due to which money has very limited value.
The features of Uni-Sona are the following;
1. The amount deposited in the bank becomes triple after seven years.
2. If person withdraws his money after five years he will get double amount
as compared to its initial deposits.
There is also a facility for partial withdrawal from principle amount. For
example, if a person has deposited Rs.50, 000,000 in January 1993 and he
withdraws Rs.20, 000,000 in January 1995. In 1996 the person has Rs.
30,000,000. This amount will receive the same interest rate and would be
doubled (Rs. 60,000,000) in January 98 and triple (RS. 90,000,000) in January
2000.
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Chapter-7 Financial Products of UBL
7.3 UNIZAR
It is a special type of foreign currency account and can be opened in two
currencies i.e. US $ and Pound Sterling. Minimum amount required for
opening of this account is 750 pounds or $ 1000. Profit is paid in the currency
in which the account is opened. Rate of return of 2.25% is paid to the
depositor.
A special feature of this account is that withdrawal from the deposits can be
made anywhere in the world in the UBL branch.
7.4 UNISAVER
It is a special type of account designed for corporate savers. This account can
be opened with Rs. 1 m up to Rs. 10 m. The minimum profit rate is 4% while
maximum limit is 8%. Profit is paid on daily product basis. Any one can open
this account.
7.5 TEZRAFTAR
It is an annual home remittance service for overseas remittance, promising
delivery within 24 hours. This facility is a perfect substitute to the Hundi
business.
48
Chapter-8 Financial Analysis
FINANCIAL ANALYSIS
COMMON SIZE ANALYSIS
Balance Sheet as at December 31, (Rs. In thousands)
Assets 2000 1999 1998 2000 1999 1998
Cash &Cash
Reserves
8,129,223 11,657,573 11,1222,801 5.23 7.55 7.94
Balances With Other Banks & Money at Call
10,995,922 12,010,493 10,453,410 7.08 7.77 7.47
Investments 33,101,778 44,953,910 47,955,359 21.32 29.10 34.25
Advance-Performing Non-Performing
74,156,421 61,714,410 48,468,324 47.78 39.95 34.02
Taxes-
Recoverable
6,380,572 5,411,265 – 4.11 3.50 –
Deferred Taxation 8,297,500 9,101,500 – 5.34 5.89 –
Operating Fixed
Assets
2,764,367 2,811,978 2,828,198 1.78 1.82 2.02
Other Assets 11,385,333 6,789,328 19,163,552 7.33 4.39 13.69
Total Assets 155,211,116 154,450,457 139,991,646 100 100 100
Regular %age
8
49
Chapter-8 Financial Analysis
Liabilities 2000 1999 1998 2000 1999 1998
Deposits &Other
Accounts
128,679,245 127,133,204 117,718,301 82.91 82.31 84.09
Borrowings From Other Banks
4,859,758 7,329,160 5,495,192 3.13 4.74 3.92
Bills Payable 1,186,961 1,508,553 865,559 0.76 0.97 0.62
Other Liabilities10,387,683 9,427,031 6,918,942 6.69 6.10 4.94
Deferred
Liabilities
1,294,883 1,002,297 1,278,598 0.83 0.65 0.91
146,408,530 146,400,245 132,276,592 94.33 94.78 94.49
Share Holders’
Equity
6,726,604 5,866,362 5,531,202 4.33 3.80 3.95
Surplus/(Deficit)
on
Revaluation of
Securities
(103,409) – – (0.06) – –
Surplus on Revaluation of Fixed Assets
2,179,391 2,183,850 2,183,850 1.40 1.41 1.56
Total Liabilities 155,211,116 154,450,457 139,991,644 100 100 100
Regular %age
50
Chapter-8 Financial Analysis
COMMON SIZE ANALYSIS
Profit & Loss A/C for the year, ended Dec 31, (Rs. In thousands)
2000 1999 2000 1999
Mark Up/ Interest And Discount And /or Return Earned
10,416,460 9,861,676 100 100
Less: Cost/Return on Deposits, Borrowings etc.
(6,740,868) (7,508,557) (64.71) (76.14)
Gross Profit 3,675,592 2,353,119 35.28 23.86
Fees, Commissions & Brokerage
1,180,448 969,051 11.33 9.82
Divided Income 22,733 18,417 .22 .19
Other Operating Incomes 2,293,856 2,139,140 22.02 21.69
Total Income 7,172,629 5,479,727 68.86 55.56
Administrative Expenses (5,159,130) (4,719,951) (49.53) (47.86)
Operating Profit 2,013,499 759,776 19.33 7.70
Provision Against Non-Performing Assets
(120,539) (65,504) (1.16) (.66)
Profit Before Unusual Items 1,892,960 694,272 18.17 7.04
Unusual Items (247,463) 558,787 (2.37) 5.67
Profit Before Taxation 1,645,497 1,253,059 15.80 12.71
Taxation Charges (978,405) (746,000) (9.39) (7.56)
Profit After Taxation 667,092 507,059 6.41 5.14
Regular%age
51
Chapter-8 Financial Analysis
TREND ANALYSIS (REGULAR) (Rs. in thousands)
UBL’S GROWTH IN DIFFERENT AREAS
1995 1996 1997 1998 1999 2000
Authorized Capital 2,950 2,950 2,950 25,000 25,000 25,000
Paid Up Capital 1,482 1,482 1,482 22,482 22,482 22,482
Reserve Fund 2,113 2,133 4,360 383,2 3,761 4,087
Total Assets 124,283 121,820 101,490 139,510 154,450 155,211
Total Deposits 109,260 106,735 106,711 117,718 127,133 128,679
Advances & Investments
95,866 87,787 76,656 96,423 106,668 107,258
Total Expenditure 11,380 10,377 11,293 11,359 12,026 11,899
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Chapter-8 Financial Analysis
TREND ANALYSIS (PERCENTAGES)
1995 1996 1997 1998 1999 2000
Authorized
Capital
100 100 100 847.45 847.45 847.45
Paid Up Capital 100 100 100 1541.25 1541.25 1541.25
Reserve Fund 100 100.96 163.4 181.35 177.99 193.42
Total Assets 100 98.01 81.66 112.25 124.48 124.88
Total Deposits 100 97.68 97.66 107.74 116.35 117.77
Advances &
Investments
100 91.57 79.96 100.58 111.26 111.88
Total Expenditure 100 91.18 99.23 99.81 105.67 104.56
53
Chapter-8 Financial Analysis
54
Chapter-8 Financial Analysis
55
Chapter-8 Financial Analysis
56
Chapter-8 Financial Analysis
57
Chapter-8 Financial Analysis
58
Chapter-8 Financial Analysis
59
Chapter-8 Financial Analysis
RATIO ANALYSIS
PROFITABILITY RATIOS
1. Gross Profit Margin:
This ratio shows the percentage of gross profit in the total revenues.
Formula: Gross Profit / Revenue X 100
Year 2000 1999 1998
GPM 35.29% 23.86% 19.66%
Analysis:
The ratio is getting better and better after the 1998 collapse.
2. Net Interest to Total Assets:
This ratio shows the net amount of interest earned per 100 dollars of total
assets.
Formula: Net Interest Earned/Total Assets X 100
Year 2000 1999 1998
Net Interest to T. Assets 2.37% 1.52% 1.22%
Analysis:
The ratio reflects the positive change in advances.
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Chapter-8 Financial Analysis
3. Return on Assets After Taxes:
The ratio shows the net amount earned per 100 dollars of assets.
Formula: Net Income/Total Assets X 100
Year 2000 1999 1998
ROA .43% .33% 1.92%
Analysis:
After the 1998 crisis, the ratio is improving.
4. Total Income to Total Assets:
This shows the amount of total income earned per 100 dollars of total assets.
Formula: Total Income/Total Assets X 100
Year 2000 1999 1998
T. I to T. A 4.62% 3.55% 3.22%
Analysis:
The ratio has improved significantly in 2000.
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Chapter-8 Financial Analysis
LIQUIDITY RATIOS
5. Current Ratio:
This ratio shows the relationship b/w current assets and current liabilities i.e
how much of current assets we have, to offset a dollar current liability.
Formula: Current Assets/Current Liabilities
Year 2000 1999 1998
C.R 0.87 0.89 0.90
Analysis:
The gradual decline shows that the bank likes to meet its current liabilities
with minimum current assets.
6. Cash Ratio:
This is relationship b/w cash at hand and current liabilities i.e how much cash
we have against a dollar liability.
Formula: Cash/Current Liabilities
Year 2000 1999 1998
Cash Ratio .056 .080 .085
Analysis:
The bank is currently relying less on cash to meet its current obligations.
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Chapter-8 Financial Analysis
ACTITIVTY RATIOS
7. Assets Turnover Ratio:
The ratio shows the dollar amount of revenue earned per hundred dollars of
assets.
Formula: Revenue/Total Assets X 100
Year 2000 1999 1998
ATO 6.71% 6.38% 6.21%
Analysis:
The ratio is gradually improving.
8. Fixed Assets Turnover Ratio:
This ratio shows the dollar amount of revenue earned per 100 dollars of fixed
assets.
Formula: Revenue/Fixed Assets X 100
Year 2000 1999 1998
FATO 376.8% 350.70% 307.6%
Analysis:
The ratio is improving partially because the bank is slowly and gradually
decreasing its fixed assets.
9. Current Assets Turnover Ratio:
This ratio shows the relationship b/w the revenue earned and current assets
only.
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Chapter-8 Financial Analysis
Formula: Revenue/Current Assets X 100
Year 2000 1999 1998
CATO 8.24% 7.57% 7.37%
Analysis:
The considerable improvement in the ratio last year is due to the increase in
revenue and also decrease in the current assets.
10. Interest Expense to Total Income:
It is a relationship b/w interest paid to depositors and the total income earned.
Formula: Interest Expense/Total Income X 100
Year 2000 1999 1998
I.E to T. Income 93.98% 137.02% 155.20%
Analysis:
Total income is improving substantially against the interest paid.
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Chapter-8 Financial Analysis
11. Taxation to Total Income:
The ratio shows the %age of tax applied to total income.
Formula: Tax/Total income X 100
Year 2000 1999
T.T.I 13.64% 13.61%
Analysis:
As no extraordinary regulatory changes have occurred so the ratio remains
almost the same.
12. Total Expense to Total Income:
This ratio shows the amount of dollars spent to earn a total income of dollar
100.
Formula: Total Expense/Total Income X 100
Year 2000 1999 1998
T.E to T.I 165.90% 223.16% 252.2%
Analysis:
The substantial change is due to decrease in expenditure and also increase in
total income.
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Chapter-8 Financial Analysis
13. Interest Expense to Deposits:
The ratio reflects the rate at which the bank has honored the depositors.
Formula: Interest Expense/Deposits X 100
Year 2000 1999 1998
I.E to D 5.24% 5.90% 5.94%
Analysis:
The change shows the bank has cut down the rate of return to account holders.
14. Total Expenses to Deposits:
This shows the amount spent to have a deposit of dollar 100.
Formula: Total Expense/Deposits X 100
Year 2000 1999 1998
T.E to D 9.25% 9.62% 9.65%
Analysis:
Despite significant improvement in many areas, improvement here is
negligible.
66
Chapter-9 SWOT Analysis
SWOT ANALYSIS
On the basis of “SWOT” analysis, one can analyze the present status and
performance of an organization and can make conclusions and
recommendations.
The “SWOT” analysis consists of four words that are S, W, O & T, which
stand for Strengths, Weaknesses, Opportunities and Threats respectively.
9.1 STRENGTHS:
Something an organization is good at doing is termed as its strength. UBL’s
strengths are:
1. Experience of operation, as the bank was established in Nov 15 1959.
2. Bank’s emphasis on consumer banking by providing them with innovative
saving schemes, products and services suiting best to their life style.
3. Best and optional policies and attractive compensation packages for
employees, which really improved their commitment, dedication and
hard work towards the accomplishment of bank’s objectives.
4. Easy access to the customers at their residential localities through a well
spread branch network.
5. Professional and skilled management as UBL provides proper training to
their employees.
9.2 WEAKNESSES:
Weakness is something an organization lacks at doing that. For UBL these are:
1. Customers having accounts with small amounts are not given the same
attention given to those with large amounts.
9
67
Chapter-9 SWOT Analysis
2. Higher number of branches affecting maintenance in consistency and
same working atmosphere.
3. Political, legal and sauce cultural pressure.
4. Lengthy advancement procedures.
5. Promotion is purely based on seniority, so young processionals having
high qualification are having any chance of promotion.
6. The software developed for daily recording of the operations is under-
utilized
7. Most of the personnel are not qualified, they are mainly rankers so they
don’t know the logic of operation.
9.3 OPPORTUNITIES:
An external situation, which an organization can benefit from, is called
opportunity for that organization. UBL can grab the following opportunities:
1. Growing policies of the Government on business and commerce sector
provides UBL an opportunity to efficiently meet the business people’s
requirements of instant cash financing facilities.
2. Customer’s feedback on different products and services has really
improved the bank’s performance and encouraged the atmosphere for
other future policies.
3. UBL has an opportunity to expand its new technological advancement
like Tele bank and Internet banking facilities in order to serve the
customers more efficiently. Especially E Banking is a new opportunity
which is a flourishing business in foreign countries and can also be
here, if UBL takes the initiatives.
68
Chapter-9 SWOT Analysis
4. Due to efficient and experienced management group, UBL can
improve and expand its foreign operations successfully.
5. Increasing need and potential of leasing in Pakistan provides UBL an
opportunity to utilize its skills and efficiencies in leasing business as
well.
9.4 THREATS:
An external situation posed to harm organization’s interests is regarded as
threat to that organization. UBL worries about the following;
1. A tremendous number of foreign banks are opening their branches in
the country.
2. Also the increasing operations of private banks pose threat to UBL.
3. Highly specialized and attractive services offered by foreign banks to
their customers.
4. Lack of consistency in Government’s policies regarding business and
economic sector.
5. Growing global technological advancement.
6. Strict regulations of the Government over credit facilities to the
customers as well as to meet the prudential regulations.
7. Loss of confidence of overseas customers due to freezing of accounts.
The SWOT analysis is a mirror to the bank of its present condition. From this
analysis, we can conclude that the bank has done some professional changes in
its banking system. But still there are chances for improvement. The
management can develop elaborate strategic plans for capitalizing the
available opportunities. One area where the bank has done some work is the
improvement in customer services. But to get the desired results, the bank
69
Chapter-9 SWOT Analysis
should develop long-term objectives and prepare appropriate courses in order
to achieve them.
The bank should maintain principle of professional management and adhere to
the sound and sophisticated banking rules and regulations to build confidence
of the people in the institution.
70
Chapter-9 SWOT Analysis
CONCLUSION
After the establishment of UBL in he year 1959, the bank was successful in
achieving some of its objectives. In the very first year, the bank earned a
handsome profit.
After the exhaustive era of nationalization, the banks are now again
transforming to private ownership.
The decade of 1960 was dominated by an exceptional increase in economic
activities. This resulted in brining various changes in the management and
structure of the commercial banks. In the area of management, more
professionals were brought in and the same was done with the structure.
UBL was not an exception to these changes. In the last decade of the century,
the bank has witnessed very bad banking business. To rebuild the bank, new
professional people were included, under the leadership of MR. Zahoor
Soomro. Under him, the bank introduced incentive schemes and products such
as CARAMAD, ZAR AMAD and UNI MAHANA etc.
The bank also reshaped the product of Rupee Travelers Check (RTC) with a
new name of HAMRA.
All these schemas were very successful in stopping the capital flight from the
country, which was the result of banning foreign currency accounts in MAY,
1998 after the nuclear blasts.
Now the bank is focusing on improving the standard of its service facilities,
specially improving its corporate banking and more customer satisfactory
culture.
All these new and potential improvements are signs of bright future for the
UBL.
71
Chapter –10 Critical Analysis of Banking Sector
CRITICAL ANALYSIS OF BANKING SECTOR
Exposure to the world through rapid development in the information
technologies has brought about considerable change in our perception about a
number of fields in general and banking in particular. The very access to
information about the development of banking and the level of sophistication
that has been accomplished in this particular sector in the developed
economies has changed our view that we held previously about banking. Our
work with United Bank for two months gave us an opportunity not only to
understand banking but also made the problems faced by our poorly
performing banking sector quite conspicuous.
The main problem that I observed has to do with the general commercial
banking in our country and its functioning in economic, socio-political
environment. It is poorly regulated sector and far from being developed at the
international standards due to the lack of autonomy it has.
A great proportion of their loans is non-performing and is stuck up either in
the public sector enterprises or with a group of politically influential
industrialist class. This class has been termed by Diaz Alejald Ro, a writer
from Latin America, as gropes.
10
72
LIST OF PERSONS INTERVIEWED
1. Mr.Sarfaraz Khan, Manager, UBL Takht Bhai
Branch, July20, 2002
2. Mr.Sajid Anwar, Second Officer, UBL Takht Bhai
Branch, July22, 2002
3. Mr. Abdul Sattar, In-charge Foreign Exchange
Deptt, UBL Mardan Bank Road Branch, July26, 2002
4. Mr. M. Farooq, In-charge Remittances Deptt, UBL
Mardan Bank Road Branch, July29, 2002
5. Mr. M. Tahir, In-charge Accounts Deptt, UBL
Mardan Bank Road Branch, August 8,2002
6. Mr. Jan Muhammad, In-charge Deposits Deptt,
UBL Mardan Bank Road Branch, August 10,2002
7. Mr. Wisal Muhammad, In-charge Bills Deptt, UBL
Mardan Bank Road Branch, August 18,2002
8. Mr. Shahid, Chief Cashier,Cash Deptt, UBL Takht
Bhai Branch, August 20, 2002
73
BIBLIOGRAPHY
1. Annual Report UBL 1999.
2. Annual Report UBL 2000.
3. A Review From Daily “The News” on Monday
March 05,2002.
4. A Case Study of UBL Main Branch Mardan by
Zahid Hussain.
5. A Case Study of UBL Main Branch Bannu by
Muhammad Raza Khan.
6. Iffland, Charles & Langueton, Pierre. (1996)
International Banking, Irwin Book Co., New York.
7. Khan Rana, Safdar Hussain & Khan Rana,
Ahmad Shabir. (1991) Banking Currency And Finance, Ilmi Kutab
Khana, Lahore.
8. Klein, John F. (1998) Money And The Economy,
Mc Grath Hill, New York.
9. Meenai, S A. (1992) Money And Banking In
Pakistan, Habib Publisher, Multan.
10. Saeed, M Nasir. (1994) Economics Of Pakistan,
Ilmi Kutab Khana, Lahore.
11. Siddiqi, Asrar H. (1998) Practice And Law Of
Banking In Pakistan,6th Ed, Royal Book Co,Karachi
74