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UBL Internship Report


Submitted To:

The Director (IMS)





Submitted By:

                                                    Shakeel Mushtaq


Roll No.000

Session 2006-10


Internship report submitted to the Institute of Management Studies, University of Bannu, in partial fulfillment of the requirements for the Degree of Master of








External Examiner:


Signature                     ………………………….








Signature                     ……………………


Name                         MR. AFTAB KHAN

Designation                 Lecturer







Signature                      ………………………


Name                           HAJI AMAN ULLAH AWAN


Institute of Management Sciences

University of Science and Technology Bannu


Banking is the backbone of the economy of any country. In Pakistan, banks are now getting the attention and support of the government, to nourish and initiate the developmental projects in this Country. Banks have also attained a high level of initiation, productivity, and growth. One such bank with new policies and strategies pushing forth towards progress is United Bank Limited, which has since its inception shown remarkable achievements and discovered new avenues of innovative banking.

During my two months Internship in UBL, Main Branch Bannu,  I acquired first hand information about Consumer Banking of the bank.

Report writing is infact a crucial exercises because the performance of a student is judged through this report. I have tried my level best to cover every aspect of this specialized banking activity, asses the working and performance of the Center and forward solutions for its further improvements.

A number of persons have offered their help and guidance in writing this report. I express my thanks to my supervisor MR.AFTAB  KHAN, and my manager MR. JAVID KHAN. I would also like to thank to the other staff members of UBL, especially MR. HANIF ULLAH  KHAN , without whose support it was impossible for me to do this tedious job.


                                                                                    Shakee Mushtaq

              BBA-IT  (HONS)

                                                   Roll No.832

                                                          Session 2006-10


In completion of this work I am thankful to Almighty ALLAH, as I firmly believe, without his gracious help; this accomplishment would not have been possible.

First and foremost, my deep appreciation, gratitude and indebtedness to my supervisor MR.AFTAB  KHAN, Lecturer, Institute of Management Sciences, University of Bannu, for his continuous encouragement, moral support and generosity in sharing his  time and knowledge during my studies.

I wish to express my sincere gratitude to personnel of UBL, Main Branch, Bannu, for their help and guidance during my Internship.

Thanks to the constraints of academic protocols, that those who were and are always first in my mind are being mentioned last. They are my parents and my loved ones. It is, I believe, their sincere prayers, which were a constant source of strength and inspiration to me that resulted in the completion of this work. I dedicate this work, blended in my boundless love and affection, to them.






Roll No.832

Session 2006-10



S.No.             Topic Page No.
  Preface i
  Acknowledgement ii
  List of Tables vi
  List of Graphs and Charts vii
  List of Acronyms viii
  Executive Summary ix
  Chapter – 1  
1.1 Background of the Study 7
1.2 Objectives of the Study 7
1.3 Scope of the Study 8
1.4 Importance of the Study 8
1.5 Research Methodology (no need of this) 9
1.6 Limitations of The Report 9
1.7 Scheme of the Report 10
  Chapter – 2  
2.1 Introduction 11
2.2  Growth and History of UBL 11
2.3 Management of UBL 13
2.4 Subsidiaries 16
2.5 Joint Venture 16
2.6 Role of UBL in NWFP 16
2.7 Mission Statement of UBL 17
2.8 Objectives of UBL 17
  Chapter – 3 18
3.1 UBL Organizational Structure 18
3.2 Concept of HUB and Spokes Branches 20
3.3 Division of UBL’s Office 20
3.4 Concept of consumer Assets centers 22
3.5 Top Management at the Head Office 22
3.6 Organization Hierarchiy 23
3.7  Location map work of UBL in PAK 24

































4.1 Accounts Department 27  
4.2 Remittances Department 38  
4.3 Deposits Department 30  
2.4 Foreign Exchange Department 32  
4.5 Advance department 34  


Chapter – 5








  Chapter – 6    
6.1 Strengths 43  
6.2 Weaknesses 43  
6.3  Opportunities 44  
6.4 Threats 44  
  Chapter – 7    
7.1 Deposits Department 48  
7.2 Remittances Department 49  
7.3 Cash Department 49  
7.4 Bills and Clearing Department 50  


Advace department

Other finding and Recommendation










United  Bank Limited


ADPC             Agricultural Development Finance Corporation

ATM’s             Automated Teller Machines

AVP                Assistant Vice President

BOD               Board of Directors

CBG                Corporate Banking Group

Corp. Sec        Corporate Secretary

CRM               Credit Risk Management

D.D                 Demand Draft

DH                  Divisional Head

Est.                  Establishment

EVP                Executive Vice President

HBL                Habib Bank Limited

HRM               Human Resource Management

IBCA              Inter Bank Credit Advice

ICP                  Investment Corporation of Pakistan

IDBP               Industrial Development Bank of Pakistan

M.D                 Managing Director

MT                  Mail Transfer

NBP                National Bank of Pakistan

NDFC             National Development Finance Corporation

NWFP             North West Frontier Province

PIFC               Pakistan Industrial Finance Corporation

RTC                Rupee Traveler Cheque

SAMG                        Special Assets Management Group

SBP                 State Bank of Pakistan

SEVP              Senior Executive Vice President

UBL                United Bank Limited.

V.P                  Vice President

WHT               with Holding Tax




Now a day’s 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 three months internship in UBL Main branch Bannu, gave me a very good deal of the practical experience about the bank, its personnel and various services it offers to the clients. Although three months duration for studying organization by no means is enough but I have tried my ever best to cover all the areas of the bank in my report.

This report highlights the operations and functions of bank. Banks acts as financial agents to their customer; in return they get reward for their services. Banks play important role in development of society. A strong economy must have a good banking system.

United Bank Limited is one of the leading banks in Pakistan. This report explains how different functions of UBL works and what are their services. During the critical analysis, it was observed that UBL is one of the leading commercial banks of Pakistan.UBL has a greater responsibility for safety and prudence. since commercial banks must make a living by putting the money at their disposal to work, they are faced with the problem of making a living without jeopardizing the safety of their institution and UBL is doing all this very efficiently.




1.1     Background of study

United Bank of Pakistan is one of the leading and first government recognized bank in Pakistan. Aimed to be the pre-eminent financial institution in Pakistan and achieve market recognition both in the quality and delivery of service as well as the range of product offering.

The reason of its development was that the UBL in addition to being a commercial bank in the public sector at a time when all other commercial banks were in the private sector

also came to acquire certain characteristics which to this day set it part from other commercial banks of the country.

The establishment of UBL thus signaled the achievement of another milestone in the development of the banking industry in Pakistan.

1.2       Objective of the study

For getting the Master degree of 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.

1.3       Scope of the study

  1. It is a compulsory requirement for the award of Master’s Degree of 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 banking, 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.

1.4       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 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 Pine View Road 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.

1.5       Report 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 and staff members.
  2. Personal observations.

The sources of secondary data were:

  1. Annual reports
  2. Over view of the UBL
  3. Relevant books.
  4. The web sit of UBL

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 manager. I spent eight weeks in the local branch and collected information about different departments of the bank from discussion and interview with manager, so most of the data of this report is primary .I also availed assistance from few relevant books.

1.6       Limitation of the Report

There were however some limitations and that is the two months durations of internship are nothing to gain entire knowledge of banking. Moreover the bank does not want to provide data particularly about the rightsizing of employees and stuck-up loans due to various reasons, so the reader must also keep this in mind.




The report has been divided into 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 from it. Light is also thrown on the way in which the research has been conducted.


Chapter 2: of the report is about evolution of banking. This chapter contains detailed information that what role the banks play in the economic development of a country. In this chapter the bank is defined. Growth of the banking globally as well as in Pakistan is pointed here. As well as it is about the historical background of UBL. The circumstances in which UBL was established and its growth is discussed here.

Chapter 3: of the report is about the organizational structure of UBL. Hierarchy of staff and various positions of seniority are shown and discussed through a Chart.

Chapter 4: covers various departments of UBL. Each department is separately given due consideration. Various functions performed by different departments are highlighted.

Chapter 5: this chapter is about services & product of UBL, throws light on various financial products UBL offers to its customers.

Chapter 6:  of the report consists of SWOT analysis.

Chapter 7: is consists of Findings and Recommendation of UBL







The word bank is derived from Latin word “Bancs” or “Banque”, which means a bench. The explanation of this origin is attributed to the fact that the Jews in Lombardy transected the business of money exchange on benches in the market place. When the business failed, the people destroy the bench.

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 money changers were never called Banchierei in the middle ages

Other authorities hold the opinion that Bank is derived from German word back which mean joint stock fund. Later on, when the German occupied major part of Italy, the Back was italicized into Bank

Historical Background and Growth of UBL:

“The reserve Bank of India which was given the responsibilities of exercising control over banking sector did not perform its duties properly in Pakistan.”

The real momentum was given to banking system when the State Bank of Pakistan, was established on 1st July 1948. But a real turn took place in the banking section when a renowned banker Agha Hassan Abdi took initiative of opening a bank, which he announced to the different mode from the others. His dream became true when the first branch of United Bank Limited (UBL) was opened at Macleod Road (now 1.1. Chandrigar Road Karachi) on 7th November 1959.

This achievement was recurred after passing through many problems and after completion of a lot of legal formalities. UBL was established on 24th July 1959 as a public limited company with registered office at 1.1 Chandrigar Road, Karachi. The authorized capital was Rs. 2, 00,00,000 issued, subscribed and paid up capital was a Rs 1,00,00,000 share of Rs. 101 each. . The bank currently operating through 1300, branches in all the major cities of the Pakistan and its registered office are situated at state life insurance corp. Building # 1, 11. Chundrigar road, Karachi.

United bank limited is one of the most famous bank working in different area of Pakistan, UBL is now officially the second largest private sector bank in Pakistan with its 25 percent growth in deposits to RS 237 billion in 2004.

Progressive Banking was a vision that came true in 1959 with the birth of UBL. It brought in an era of modern banking and customer care beyond the ordinary.

The Bank launched a variety of consumer banking products and services – UBL Drive, UBL Cash line, UBL Address, UBL Business Line, UBL Wallet ATM card and UBL Business Partner.

UBL is one of the largest commercial banks in Pakistan with assets of over RS. 190 billion, Net Assets of over RS. 13 billion and a solid track record of 47 years. UBL offers its services through a nationwide network of over 1300, branches spread all over Pakistan and 15 overseas branches. The Bank earned RS 4.3 billion pre-tax profits in 2003, a 59 percent increase over the previous year, and announced a dividend of 22.5 per cent. This remarkable performance was based on a record growth of 38 percent in advances, which grew from RS 72.8 billion in 2002 to RS 100.2 billion in 2003 driven by growth in deposits from RS 158.3 billion in 2002 to RS 185.1 billion in 2003.

The Bank was privatized in 2002, through the sale of 51 percent stake to a consortium of the Abu Dhabi Group led by His Highness Shaikh Nahayan Mabarak al Nahayan and the Bestway Group led by Sir Mohammed Anwr Pervez,. The issue is unsecured and subordinated to payment of principal and profit to all other indebtedness of the Bank including deposits.

United Bank Limited is one of the largest commercial bank in the country. With almost 47 years of good standing to its valued clients, it has stood the test of time, producing assets of over RS. 282 billion.

It offers its services through a wide network of over 1300, domestic branches all over Pakistan and 25 overseas branches as part of global network.

Management of  UBL.

Essential Staff (1959).   

UBL consisted of the following staff after establishment.

  • Ismail Ibrahim Chundrigar                   Chairman
  • Muhammad Shafiq Saigol           Manager Director
  • Muhammad Rafiq Saigol            Director
  • M.Bashir Saigol                          Director
  • A. Razaq Dada                           Director
  • Mian M. Yahya                          Director
  • Saeed Saigol                                Director
  • Agha Hasan Abdi                       Director


Mr. Ismail Ibrahim Chandrigar died in 1960 and was replaced by Mr. Habib Ibraheem Rahmatullah while Mr.Shafiq Saigol retired in 1962 and Agha Hassan Abdi took charge as managing director.

After Nationalization (1974).

On 1st January 1974 all commercial banks were nationalized and the boards of directors of these banks were dissolved. Mr. Mushtaq Ahmad Youdafi took charge as president of UBL. After nationalization 14 units of commercial banks were merged in order to form 5 units. On 1977 commercial bank limited and Union Bank were merged with UBL.The names and tenure of various presidents of UBL after nationalization are as under.



S.No Name of President From To
1. Mr. Mushtaq Ahmad Yousafi 01-01-1974 31-12-1976
2. Mr. Kh. Zaiuddin 01-01-1977 31-12-1979
3 Mr. Sami 01-01-1980 03-02-1982
4 Mr. M. Sadiq Dar (Acting President) 04-02-1982 31-12-1982
5 Mr. Tajamul Hussain 01-01-1983 15-07-1988
6 Mr. Amjad Ali 16-07-1988 04-02-1989
7 Mr. Maqbook A. Soomro 05-02-1989 18-07-1989
8 Mr. Saleem Malik 19-07-1989 01-08-1990
9 Mr. Maqbool A. Soomro 01-08-1990  
10 Saeed Butt    
11 Aziz Ullah Mamon    
12 M. R. Khan    
13 Zubair Soomro    
14 Amir Zafar Khan    

Present dataThe name  and designations of present  top management include;

UBL Opperations.

From the very start of its operations UBL is providing very efficient and courteous services to its clients, and as a result of these it has achieved progress in a very limited span of time. UBL has also the honors of earring profit in the very first year after the commencement of business in 1959.

UBL introduced computer services and also offered many remunerative schemes for its depositors and clients. UBL givens advances to small,



1 Highness shaikhnayan mabarak Chairman
2 Sir Mohammad anwar pervez OBE DeputyChairman
3. Mr. Atif R. Bohari President &CEO
4 omar ziad jaafar al askari Director
5 Mr.zamer Mohammad choudry Director
6 Dr.ashfaque Husain khan Director
7 Mr. Mohammad sami saeed Director
8 Mr.aqil ahemad nasir Company sectary&chief legal
9 Mr.amir Karachi wala SEVP/Group chief financial officer


medium and big industries, commercial establishments, agriculturists and other needy persons. UBL collects electricity, gas and telephone bills from public on behalf of various departments and issues T.V licenses on behalf of Pakistan Television Corporation.

UBL has established and organized branches both inside and out side Pakistan. These are two subsidiaries and joint ventures of UBL as under.

  1. Subsidiaries:

UBL A   G. Zurich (Switzerland) established in 1968.

Its paid up capital of dollars 2722 thousand, deposits of dollars 5827 thousand and advances of dollars 5538 thousand as on Dec 31, 1962.

UBL of Lebanon and Pakistan established in 1968.

Its paid up capital of dollars 379000 deposit of dollars 125978 advances of dollars 1983313.

  1. Joint Ventures:
  2. Commercial bank of Oman Limited (Mascot) established in 1982.
  3. United Saudi Commercial Bank Limited (Saudi Arabia) established in 1982.
  4. UBL has been presenting a very good track record since its inception into banking business.


  1. 3. Branches

               UBL has a large network of branches, which extends to the remotest areas of the country. In December 1983 there were 1623 branches where in 1974 it had only 1238 branches. At present UBL have 1096 domestic branches. and present 15 overseas branches. some names are .bahrain,Qatar,Saudi Arabia,united Arab emirates,yemenarab republic,uk,Switzerland,Egypt,oman and the united states.

6        Role of UBL in KPK.

The role of UBL has developed largely; through out the country in very short period of forty seven years. The bank is operating in the entire country and has branches all over the country and overseas. In N.W.F.P, UBL is operating successfully. The number of branches of UBL in Peshawar region is 156 up to dec.2001 i.e. there are total 14 Hub Branches in Peshawar region and under these Hub branches, there are 142 spokes branches. These 156 branches come under the Peshawar Region, for which there is a Regional head Quarter (RHQ) in Peshawar.

The list of hub branches come under the Peshawar Region is as under.

  1. Peshawar 6.       Haripur       11.     Mardan
  2. Bannu           7.       D.I. Khan    12.     Swabi
  3. Mansehra 8.       Mingora      13.     Kohat
  4. Timergara 9.       Nowshera   14.     Abbotabad
  5. Hangu 10.     Bathela

2.7     Mission Statement of UBL


“We shall dominate Pakistan’s financial markets and be the leading bank of Pakistan in term of quality of customer services, assets, profits and reserves. We shall consistently try to be among banks in the Pakistan. Comparing over selves to international standards. We shall be a modern universal bank. Our employees will be efficient, motivated and have corporate pride”

2.8     Objectives of UBL

Objectives mean the end towards which an activity is aimed. An organization without objective is like a person who is wandering with no purpose. All the activities of an organization are due to its objectives and goals. And for the attainment of those objectives, various types of financial products and plans are developed. UBL has also some objectives, which are as under.


  • To ensure growth and development of the bank.
  • To use resources of the bank efficiently.
  • To get more deposits.
  • To participate in development of the country.
  • Paying special attention to the areas, which are under developed.
  • To develop SME’S.
  • To increase industrialization in the country.
  • To provide financial help to the farmers.
  • To provide employment opportunities.
  • To make people more of mind to have saving habits




Organizational structure of a firm provides boundaries for authority of persons and clarifies individual responsibility and authority. It shows who is responsible to whom, and who has the authority to give orders to someone. An organization having dual authority or vague structure would not have clear direction and will face hurdles in getting its goals and objectives. Therefore, it is very important for any organization to have a well-established structure of responsibility and authority. An organization structure should be so designated to clarify the environment so that everyone knows his duty and who is responsible for what. It results to remove obstacle to performance caused by confusion and uncertainty of tasks and to furnish a decision making communication network reflecting and supporting enterprise objectives.



UBL also has a well defined formal organizational structure. UBL is a very vast organization. In the organization set up of UBL, the highest authority rests with Board of Directors which consists of Chairman, Deputy Chairman, President & CEO and the directors. In which four directors are from UBL, one from Pakistan Banking Council, one from Ministry of Finance and one who is also the secretary of the board. So the Board of Directors is an eight member team, and is responsible for policy formulation and making important strategic decisions.




Paste Chart








The names of the Board of Directors are as follows:

§     Chairman

H.H Sheikh Nahayan Mabarak Al Nahayan

§     Deputy Chairman

Mr. Muhammad Anwar Pervez, OBE, HPK

§     President  & CEO

Atif R. Bokhari

§     Director

Zameer M. Choudrey

§     Director

Omar Z. Al Askari

§     Director

Muhammad Tehsin Khan Iqbal

§     Director

Ahmad Waqar

  • Director

Javed Sadiq Malik


The authority, which is second highest, lies with executive committee. It consists of seven members, including the president and secretaries are in charge of divisions. The members are Senior Executive Vice President (SEVP) of UBL. There are twenty divisions, which have their own Senior Executive Vice President (SEVT). Executive Vice President (EVP), or Senior Vice President (SVP), the

SEVP to international divisions manages the operations of foreign countries branches.The rest of the divisions work along their functional lines as shown in the organizational chart.

At the National level, UBL has a network of branches spread allover the country and its field operations are one of the most extensive among the leading banks in Pakistan. At provincial level the bank is managed by SEVP, who is assisted by General Manager (OM), who is EVP or SEVP. The OM is responsible for either a number of regional areas or in charge of various provincial departments such as Administration, General Recovery, Loans, Inspection, etc. The complexity and extensiveness of the operations in a given province determine the number of OMs. OMs are assisted by circles executives who are of the rank of SEVP or VP.

The entire country is divided into Circles which are further divided into Zones.

The circles are administered by circle executive. Each zone is comprised of a number of branches, which are managed by branch managers who are mostly Grade I or Grade II officers. Some large sized branches are also managed by AVPs.


The concept of HUB and Spoke branches was introduced by ANZ Grind lays Bank (now renamed Standard Chattered Bank). The bank couldn’t get the deMr.ed benefits and withdrew form it. Another bank which adopted the concept was National Bank of Pakistan (NBP), which also couldn’t get the deMr.ed results so both the banks disbanded it. Recently UBL has implemented this scheme with high hopes. Under the concept big branches of a zone are given the status of Hub branches. The Hub branches monitor the activities of spokes branches. The number of branches under a Hub branch depends upon the resources of Hub branch and the location of the spokes branches e.g. in Peshawar there are two hub branches one is Peshawar Cantt branch and the other one is Khyber Bazaar branch. All the spoke and Hub branches work under the concerned area manager. He is responsible for the performance of these branches. He sits in the Hub branch and is assisted by a Vice President. In UBL this new concept of banking has shown tremendous results and is quite successful here. Unlike ANZ and NBP, UBL is getting benefits from it, and has improved its performance quite well.




Basically there are two types of offices in UBL

  1. Head Office
  2. Regional Head quarters
  3. Head Office

Head office of UBL is in Karachi. It exercises overall control over the bank. The head office (HQ) has various functions.

  • It formulates polices and ensures its implementation.
  • To supervise and control the operations of the regional offices.
  • To formulate policies and ensure its implementation by the field offices.
  • To deal/liaison with foreign donors like IBRD (World Bank), Asian
  • Development Bank, Islamic Development Bank, KFW (German Bank),
  • FMO Netherlands etc.
  • To deal with Ministry of Finance.
  • To supervise RHQs.
  • To sanction loan applications received from the branches.
  • To deal with ministry of finance.
  1. Regional Head Quarters

There are Eleven Regional Offices of UBL which fully cooperate with the Head Office. UBL Regional Offices performance with reference to sanctions, disbursement, recoveries, and deposit mobilization is of vital importance to the bank operations. The functions are as follows:

  • To implement the policies formulated by the Head Office.
  • To extend the credit facilities by keeping in view all the prescribed conditions.
  • To recover/collect the existing long-term credits extended by the bank as per schedule.
  • To assist customers in the process of development by advancing loans for viable financial projects.

All the 1056 UBL branches are the representatives of the bank. These branches provide commercial as well as non-commercial banking facilities. Various structures involved in the organization of UBL are given below.


As the UBL was privatized the management started thinking about the consumer products as well the commercial products. For this purpose the management started hiring from all over the world in order to collect the cream, and make a world class team without any doubt.

The management took the consumer head from the bank which is consider as the pioneer in the consumer sector “City Bank”, and then he joined hands management and made all the possible ways to make UBL a World Class Bank on the Consumer Side as well in the Commercial Sector. They made collectively the plans to make Consumer Assets Centers in all over the country which was introduced first time in Pakistan.

The UBL’s Consumer Assets Centers are the state-of-the-art in the main cities like Karachi, Lahore, Islamabad and Peshawar. The Consumer Assets Centers are divided in main Head Office, Regional Centers and New Cities. At the time of launch the regions were 10 in the country but now it has been increased to 14.

In Consumer Assets centers the products are divided in to two types: The Secured, and Un-secured Products. The Secured include UBL Autos, UBL Address, and Credit Card while the UBL Money and UBL Cashline comes under the canopy of Un-secured Products.

There is a Group Executive, a Global Sales Head, Head Secured Financing, Head Un-secured Financing, National Sales Managers, Regional Sales Managers, Relationship Managers and the Relationship Officers.


I.       Board of Directors

The executive authority for the general direction and supervision of the Bank operations or the conduct of business of UBL vests in Board of Directors. The board consists of a Chairman and seven other Directors.

The chairman of the Board of Directors is the “Managing Director”. All the members of the Board of Directors, as well as the Managing Directors are appointed by the government of Pakistan.

II.      Executive Committee

Executive committee of UBL consists of seven members. With the expectation of the president, and secretary all other members serves as In charge of many divisions. These members are Senior Executive Vice President (SEVP), or consultants hired on contract basis. The Division Heads that work under SEVP or consultants are either Senior Vice President (SVP), Executive Vice President (EVP) or Vice President (VP). The members of the executive committee other than the M.D. shall hold office for such period as may be determined by the Board. The decisions of the executive committee, other than those, which relate to matters specified by the board in this behalf, shall be laid before the board

          Functions of Executive Committee

  • The members of the executive committee other than the M.D. shall hold office for such period as may be determined by the Board of Directors.
  • The decisions of the executive committee, other than those, which relate to matters specified by the board in this behalf, shall be laid before the board for approval.
  • Subject to the general or special direction of the board, The Executive Committee may deal with any matter within the competence of the board.

           Managing Director

  • The Managing Director is responsible for the efficient working of the organization. He performs his duty according to the policies formulated by the Board of Directors and is directly answerable to it.
  • The Federal Government on such salary and on terms and conditions shall appoint the MD as it might deem fit.
  • The MD shall hold office for term of three years, which the government may extend from time to time.
  • The MD shall be the Chief Executive of the organization and shall perform such functions as required by the Ordinance and the rules and regulations made for the past.

Organizational Hierarchy C

Board of Directors

Executive Committee







Office Grade 1

Non Clerical Staff   –  Clerical Staff –  Officer Grade III – Officer Grade II

Organizational Hierarchy Chart of consumer sector in UBL


Board of Directors.

Executive Committee


Group Executive

Global Sales Head

Head Secured Financing -Head Un-secured 

National Sales Manager

Senior Sales Manager

Regional Sales Manager

Relationship Manager

Non-Clerical Staff – Processors – Relationship officers

Location map

WITH an integrated network of over 1000 branches in Pakistan as well as Overseas, UBL gives you direct access to a comprehensive range of better banking facilities to help you monitor your business locally as well as internationally.




UBL like other commercial banks established various departments for the performance of various functions. Some of the departments of UBL are Foreign Exchange department, Advance Department, Accounts Department, Deposit Department and Remittance department etc.

Now we will highlight the various function performed by the different departments in the UBL.


The Accounts department of UBL mainly deals in the accounts of customer maintained at the bank. The accounting book maintained for this services is known as cashbook. The summary book and ledger are maintained through computer.

The cashbook is used for balancing the cash received and cash paid at the end of the day.

Kinds of Accounts:

  1. Current Account
  2. Saving Account
  • Fixed Account
  1. Current Account:

There is no restriction on the deposit and withdrawals of money in this account..



  1. Saving Account:

In Pakistan saving deposit account can be opened with a very small amount of money, and the depositor is issued a chequebook for withdrawals. Return is paid at a flexible rate.Calculated on by yearly basis. However, withdrawals of limited accounts are generally allowed only one or twice a week. The consumers have to give a notice of about two weeks before the withdrawals of large amount” the minimum amount of money required for opening the saving Account is Rs. 500/- while to remain the A/c is running position the account holder has to maintain a balance of Rs. 100/- for the withdrawals are concerned there is no restriction but the bank discourages very regular withdrawals of small amounts.

iii.      Fixed Account:

“The deposits that can be withdrawn after a specified period of 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 withdrawal by cheques, And after the maturity of the previously agreed rate of return.

A single individual, partners and companies, too can maintain such accounts as well. The period of which these deposits are help by the bank ordinarily varies from three months to 60 months with the agreement made between the customer and the banker.

iii. Business Bank Account.(BBA A/C):

This is the special type of Account (A/c) offered by UBL. This type of A/c is opened for the students and salary holders. In this A/c there are some facilities offered for the A/c holder such as……..

  1. No restriction of minimum balance.
  2. ATM facility.

III. No restriction on drawing.

  1. Transfer facility.
  2. Receiving from others Banks with minimum commission.
  3. Receiving of salary from others Banks before 1st of the month.

This department is concerned with the transfer of money from one place to another. In this, various modes of transferring money are available which are discussed below.

  1. Mail Transfer (MT):

In this the money is transfer from one place to another by mail. If the person is account holder of the bank, then the banker debit his account with the amount of money he wants to transfer. The concerned bank officer will prepare the necessary vouchers to make the mail transfer complete. It contains on;

  • Debit Voucher: Debiting the account holder for the amount to be sent plus the commission and postage charged.
  • Credit Voucher: credit the drawer branch
  • Mail Transfer Register: The remittance is entered in the mail transfer issue register.

But if the person is not an account holder in the initiating branch, then he has first to deposit the stated money with the same bank and then the above process starts.



  1. Telegraphic Transfer (TT):

People who want to transfer money quickly and without delay use this type of transferring money. This type of transfer is also very simple. The person who wants to transfer money fills the TT application form. The applicant asked to deposit money to be remitted plus the amount of commission and telegraph charges. After the amount is deposited with cashier, the officer incharge remittances will prepare the TT message. The TT message also carried a test number which is a sum of values derived from number items like date, amount, and the drawer branch consecutive number etc. then this telegram is sent to the bank where the money is to be transferred. After receiving the telegram the drawer bank makes payment after the test number is correctly decoded according to the procedure prescribed.

  1. Demand Draft (DD)

In this way the person who wants to remit money goes to the bank and fills the application form by filling the name of the drawer branch, amount and the payee’s name. The amount to be remitted is deposited with the cashier along with the commission on DD and the in charge of remittances department will prepare the instrument. It is signed by two officers of the branch and is then handed over to the applicant. The amount can be received by presenting DD to the drawer branch personally or through a bank.


  1. D. Uniremote (ON LINE TRANSFER).

It is the most faster transfer of money from one bank to another with in the country.

 Thorough on line facility you can transfer the amount from one city to another city in no time without commission (if you are account holder of the Bank).

In this method the transferor A/c are Debited by the Bank and the transferee A/c are Credited (to whom the amount is transferred) by his Bank where he has A/c.

The amount is transferred in no time. Online transfer bring great revaluation in the business world and make business more secure and fast.

The trader transfer money to the seller through bank, and the seller sent goods to the buyer as soon as possible, and thus buyer save his traveling charges , as well as he also not close his business of the buying of goods for the business.

  1. Deposit Department:

One of the important functions of the bank is to receive surplus money from the individuals, firms and institutions etc. It can be said about the deposit that it is the lifeblood of any bank. A bank cab not runs its business without the deposits.

The bank usually receives deposits in the following type of accounts, which are as under.

  • Current Account
  • Saving Deposit Account
  • Fixed Deposit or Time Deposit
  • Call Deposit

`The classification of deposit chiefly on the basis of time and the purpose for which the account is opened with the bank.

Now we will study the various types of deposits in detail:

  1. Current Account:

This type of deposit is withdrawal by crepes whenever the customer draws crepes on this account.  As such deposit is also termed demand deposit.  In Pakistan, bonds do not allowed any interest on such deposit.  And the bond treat these deposit as current liabilities.  The banker also requires the customer to maintain a minimum amount of balance.  If the customer fails to do so, then bank makes deduction from such accounts/deposits under the heading on incidental chargers.

“Until a few decades bank, the proportion of current deposits in relation to fixed deposits was very small.  In recent years, however, the position has changed remarkably”.

  1. Savings Deposit Account:

In Pakistan a saving deposit A/c can open with a very small amount of money and the depositor is issued a chequebook for withdrawals. Return is paid at a flexible rate calculated on six months basis. However, withdrawals of limited amount are generally allowed only twice a week. The customer has to give a notice of about two weeks before the withdrawals of large amounts.

Such account may be maintain and run by an individual, partners and companies as well.  The most important character of this type of deposit is issued with a chequebook for withdrawals. The account holder is returned with profit rate, calculated on six months basis.

  1. Fixed or term Deposit:

It is payable to the customer after the expiry of a certain duration. The duration of fixed deposit are various from three months to sixty months. The bankers offer different rate of return on the fixed deposits depending upon the duration of the deposit.  The amount deposited in fixed account is not withdrawn able.  The amount is received back after the expiry of fixed period.

One of the most important aspects of term deposit for the banks is that the money of this deposit can be invested in various what the bank consider profitable.

This type of deposit is also known as single transaction account.  It is because the account holder cannot operate upon the account like other deposit accounts. The banker usually gives a receipt of the fixed deposit mentioning the amount of money and date of maturity of the deposit. No pay in slip book, passbook or chequebook is issued to the customer.


In today’s world no one country can keep itself self-sufficient in every area of life.  So they have to trade with other countries for the things, which she does not have.  But such Business required a medium of Exchange, which is acceptable to the countries concerned.  So they usually do business through the medium of stable currencies of the world.

For such International Business transaction the bank utilize the service of its Foreign Exchange Department.  The department plays very crucial and important role in international trade.  The service, which Foreign Exchange Department of the banks offers, is the parallel banking with general banking and additional function of import and Export Business controlled by State Bank of Pakistan.  The rules and regulations are framed by the SBP.

In UBL its foreign exchange department as per SBP regulations carries out the international banking. The SBP exercises full control over the Foreign Exchange Business.  No transaction is considered effective without permission from the SBP under Foreign Exchange control Act 1947.  Foreign Exchange regulations are issued though the Exchange control Department of the SBP.

Any transaction in the international Banking shall be carried out at rates determined by the SBP.  For this purpose the SBP fix the rate of US dollar with other currencies.  Foreign Exchange rate committee in Karachi Head Office does this by the formula approved by SBP and as published daily.  It also makes sure the rates approved are conveyed to the braches on the same day.

Foreign Exchange Department provides the following services to the customer.

  • Foreign Exchange Currency Accounts
  • Foreign Exchange Remittance Facility
  1. Foreign Currency Account:

“Government of Pakistan has introduced many important reforms in foreign exchange control in the county in February, 1990, for the purpose of strengthening foreign exchange reserve.” UBL as an authorized commercial bank offer the facility of foreign currency account in four currencies, which are US Dollar, Japanese Yen, German Mark, and UK Pound sterling.

The foreign currency account facility by UBL is available both for Pakistani citizen currency account is similar to opening of local currency account. The account may be an individual or joint account. There are two types of foreign currency account.

  • Current Account
  • Saving Account
  1. Current Account:

Just like local currency current account holder no interest is given to the foreign currency account holder.  Foreign Currency A/C are also exempted from Zakat, Income Tax, Wealth Tax, the Account holder can shift his money abroad through Foreign Exchange remittance services

  1. Saving Account:

          UBL offers a very handsome rate of return foreign currency saving accounts.  The profit is paid in currency in which is opened.  This account too is exempted form.  Zakat, Income Tax and Wealth Tax.  The facility of inward outward remittances is granted to the customer.

Purchase and Sale Of Foreign Currencies:

Foreign currency department of UBL also has a very extensive system for the purchase and sale of foreign currencies.  UBL is an authorized dealer in the touring currency, given the authority by SBP.  UBL deals in the sale and purchase of the following foreign currencies.






Besides deposits the other major function of the bank is to advance money to the clients. This function of the bank contributes a great deal to the revenues to the bank. Due to its utmost importance to the bankers’ success, this area is given special importance and attention.

Bank normally makes advances of the types:

  • Commercial Finance
  • Agriculture Finance
  • Industrial Finance
  • Export Finance
  • Import Finance

The banks also advance to small size businesses and construction companies etc. Many UBL Branches are having departments for granting advances to the borrowers.  Normally, it is responsible for performing the following functions.

  1. To handle all the cases of short or long term loans.
  2. To process all the cases concerned.
  3. To forward the cases for approval and consideration to the higher
  4. Direct dealing with the borrowers.
  5. To insure the disbursement of loan.
  6. To inform the high authorities about various loans.

UBL make advances in the following ways.


Through this credit facility, the banker advances loan to the borrower after having tangible asset as a security.  Main characteristics of this facility are that the total amount is not given to the borrower at once rather it is given in installments, or when over required.  The borrower has to the interest only on the amount outstanding against him.

The cash credit facility is given either through by hypothecation or pledging of goods. Some requirements are as under.

  1. Custody of stock remains with the borrower.
  2. Bank lien on the stock.
  • Stock hypothecated must be insured against fire etc.
  1. Customer must submit the stock report on monthly basis.
  2. Frequent stock verification to be done by UBL.
  3. Bank may send officers or staff in order to supervise verification

Some characteristics of pledging asset against loan. Stocks are pledged with under banks lock and key.

  • Stock must be duly insured against for and burglary.
  • On monthly basis stock reports has to be prepared by the borrower duly incorporating delivery of goods, if any during the months.
  • Delivery of goods/stock is made against cash payments.


This credit facility is a very advanced form of advancing money/credit to the borrower. It is also termed as factoring. In this facility, the bank purchases the bills of beaching from the borrower. The bank gives face value of the bill to the borrower after deducting interest on the remaining period required for the bill to mature.

(c)      BY OVER DRAFT

Some time it happens that a reliable, regular customer may ask for a very short period credit. The bank accommodates such customers through the facility of over-drafting. In this facility the bank charges interest on the outstanding amount only.  This facility may be given without any security or is provided against some collateral.  It might be a temporary facility or an over-draft-limit may be sanctioned to the customer, which may be used again and again during a certain period of time.


It is an association of banks; usually set up in a given locality for the Purpose of inters changing credit claims. Nearly, everywhere this function is performed by the central bank of a country. But in cities where there is a no branch of central bank, other authorized banks perform this fiction. In Pakistan, the areas where there is no central bank branch the function of clearing house is performed by National Bank of Pakistan (NPB).

In undertaking the process of inter changing credit the following procedure is adopted.  In banking business when creditor asks for some payment, it is always the chouse through which the payment is asked for.  But there arises to situations when the payee for payment through cheques.  The payee may be account holder in the same bank i.e. of drawer or he may not be the account holder in the same bank.

When the payee is an account holder in the same bank, then the cheque is directly transferred from one to the other. And the total assets and liabilities of the bank remains the same. Then in such cases the payee deposits cheque in this bank drawn on some other    bank. The bank with the cheque is deposited becomes the creditor of the drawers bank. The debtor bank will pay this amount of the cheque by transferring it from cash reserves if there is on off setting transaction.

In daily business of the bank, there are a number of chepues deposited with one bank, which are drawn by other banks.  The drawer bank becomes indebted to the bank in which the chques are deposited for collection.  In the same way the creditor banks also receive cheques drawn on other banking giving blooms of payment by them.  Now it will be very inconvenient, uneconomical for the bank to transfer cash for fulfilling reciprocal obligations.  The best, easiest and safest way will be to off set the reciprocal claims of each other and transferring only the net amount due by any on the Clearing House provides this facility.

The clearance house is the branch of central bank of Pakistan or in case of area where on central bank is available. The representative of each bank meets at fixed time on all business day of week. This meeting is held in the bank performing duties of clearing house. The messenger of the various commercial banks gathered at the clearance house and transferring cheques payable by other banks while collecting drawn on their banks. A summary sheet is prepared describing the number of cheques received and delivered by a bank at the clearance house. Normally, the banks maintain two books for clearing house.

  • Inward clearing book.
  • Outward clearing
  • book.



In banking services UBL provides a number of services. These services include customer banking, merchant banking and corporate banking. The following is the brief description of various services offered by the UBL to its customers.

  1. General Deposits:

Due to the ever-increasing need for capital there are now a few business enterprises, which are carried, put totally with the owner’s equity/capital. So borrowing is becoming an essential feature of today’s enterprise. But in case of banking business borrowing from outside sources is all the most vital. And this is very common observation in the banking business that in a given bank’s found treassures the borrowed capital is much greater than its own capital. Bank borrows mostly in the form of various deposits the greater the difference between the rate of borrowing and lending; the greater will be the profit margin, for the bank. But the bank look forward for more deposits, as this will create more funds available for employment. So greater deposits will result in greater return for the bank and as a result greater profit. In banking business these deposits are the lifeblood of a bank. In deposit being the main advantage for the customer is as debts.

When bank receive a deposits from a customer a relationship of debtor and creditor is established. Customer becomes creditor while bank takes the responsibilities of debtor. On receiving of deposits the acquired liability for that much amount while becoming of the deposit, it can invest anywhere it deems right with out consulting the creditor of the deposit. But it does not mean that the bank becomes the sole owner of this amount, rather through an implicit agreement the bank will be liable to pay the depositor money as and when the depositor demand.

  1. Current Deposits:

UBL offers the facility of current a/c both in Pakistan rupees and foreign currencies. On maintaining such accounts these is no restriction on the customer residence. These accounts are usually maintained by businessman and business concerns. It is become that they can take and deposit money as money times as they deem right during the banking hours. As such these accounts are payable on demand. In Pakistan on offer any interest. Some of the solvent features of this a/c are as.

  1. No restriction on number of with drawls from a/c’s and on prior notice is required for with drawl.
  2. These a/c’s are regulated under the rules and regulation of SBP especially deposits of $1000 is free from all exchange control.
  • Conversion of these funds into any currency and transfer for of these finds into any country is not restricted.
  1. The foreign currency a/c’s are acceptable as a collateral against rupee loans.
  2. In case of payment to third party standing instruction by customer is required.
  3. By debiting these a/c’s a TC can be obtained.
  • For obtaining lockers facility preference is given to foreign currency a/c’s holders.
  1. Saving Deposits:

The main objective of maintaining saving deposits in running status by the bank is to develop saving habits in the people of our country. Such people may include young people, married or household woman. These people can start their a/c by depositing only a small amount at a time. These accounts can also be opened in foreign currencies. Some year ago it was not possible to withdraw money from saving a/c more than two times in a weak and prior notice was to given the bank for drawing money above a certain level. This restriction is now removed by SBP and the customer can deposit and withdraw money as and when required by the client during the banking hour.


Some of the silent features are as under:

  • Interest is payable by the bank in accordance with the rates announced by SBP.
  • No restriction on the number of withdrawals and the amount of withdrawals during a week.
  • The funds of this a/c can be utilized for purchasing Government and other securities such as foreign exchange leader certificates, special saving certificates and foreign currency bearer certificate.
  • Principal and interest earned there is on exempt from income tax and Zakat.
  • In accordance with Govt. of Pakistan regulation, customer’s deposits are free from all exchange controls.
  • If payment of a certain amount is to be made to a third party at regular intervals i.e. monthly, quarterly, standing instruction to this effect can be issued to the banker.
  • TC can be issued to the customer by debiting the customer’s a/c for the amount.
  • Preferences given to foreign currency saving account holder in providing locker facility.
  • Conversion and transfer of the currency into any other currency or country is not restricted.

The rate of return on these a/c’s are not fixed and are computed and announced at the end of the half year after half yearly and yearly closing in June and December respectively.

  1. Fixed Deposits:

These deposits are created by a single as such there are two transaction involved. One is when some body deposits the money and the other when the customers withdraw the money after or before the due date. In case of withdrawing the deposit before maturity no interest is paid to the deposit holder. The rate of return on time deposits various with the duration for when the deposit is created. The duration various from a day as long as five years.



  1. Uni cash:

Now days carrying cash while going out of your place is very risky.  Every body wants maximum security while keeping is money in his pocket.  People make use of TC and other various credits cards for this purpose.  UBL provides such facility through UNI-CASH the management of UNI-CASH is carried out in following ways.

  1. PIN (Personal Identification Number)

Personal identification number (PIN) is very important number allotted when a UNI-CASH card is issued to the customer. This number is made unique by giving four-digit can financial number and when it is used in conjunction with the UNI-CASH card is enable the customer to avail the cash point facilities. The allotted PIN number is kept event confidential form the bank staff by printing it in a special number buy the computer on a pre-sealed, tamper proof PIN millers. These PIN-MILLERS can only be seen when the customer opens the envelope.

  1. Pin Change:

When a customer after availing the facility first time with the UNI-CASH card, he/she will be required to change PIN (Personal Identification) number is sought from security point of view. The change number selected by the customer should be such that the customer can easily remember it and can not be easily guessed by other.

  1. Card Serial Number:

Card serial number is given to a particular UNI-CASH card which the customer can know by looking at the card. The first line contains the UNI-CASH card serial number with the customer’s name, a/c number and card expiry date is followed in the subsequent lines.

  1. Withdrawal Limit:

This limit is determined at the time of depositing money for availing the facility of UNI-CASH card. The limit depends upon money deposited.

  1. Cash Points:

To facilitate the process of getting money through UNI-CASH card a number of cash points are available in the country. The machines may be used round the clock. UNI-CASH card are used in these machines for drawing money from the account and for availing a number of other facilities such as the following.

  1. Balance Inquiry
  2. Mini Statement
  • PIN Change




UBL WALLET VISA is a secure innovative card providing the customers the benefits of both an  ATM (automatic tailor machine) and a debit card locally and internationally.

With UBLVISA WELLET , the customers have the power of using your card at more than 925 ATMs across the countory and over 900,000 VISA ATM locations world wide in 150 countories and over 5,000 ORIX locations across the nations and 22 millions VISA merchant locations world wide. It can be used 24hour day,

7        days a week at all UBL ATMs as well as others ATMs in 1Link & MNET    network.

ATM Card Usage :

  1. Insert the card in to the slot labeled “insert card”.
  2. Select the Language.
  3. Use the keypad to enter the personal Identification number(PIN).

 Main menue:      

In the main menue, select an icon to conduct a transact

 Cash withdrawal:

  1. Select “cash” withdrawal” from the main menue.
  2. Select the account type.
  3. Enter the required amount in multiples of Rs.500* and press OK.

Mini statement:

  1. Select mini statement from the main menu.
  2. Select the account type.
  3. Collect the mini statement.

Pin change:   

  1. Select “pin change” from the menu.
  2. Use the keypad to enter your new PIN.
  3. Reenter your new PIN to confirm.

Funds transfer. (from UBL to UBL to others banks):

  1. Select “funds transfer” from the menu.
  2. Select the type of funds transfer you to wish to conduct.
  3. Select the account from which you wish to transfer funds.
  4. Select the account to which you wish to transfer funds, or type in the

account number according to the given layout.

  1. Type in the amount of funds that you wish to transfer.
  2. Confirm the account name and number and amount of funds to execute

The Funds transfer.

Debit card usage:

  1. After shopping, present theUBL Wallet to the cashier the UBL Wallet

is accepted  at all outlets exhibiting the VISA logo as well as ORIX logo displaying machines.

  1. The cashier will swipe your UBL Wallet through the point of sale(POS) Terminal and enter the purchase amount.
  2. It is as simple as buy, swipe & sign. Simply purchase the item, swipe the card

At the POS terminal and sign on the receipt generated. For transactions on the ORIX network simply enter the PIN to complete the transactions.













The word “SWOT” consists of four words, which are stands for Strengths, weaknesses, opportunities and threats, respectively.

Through the “SWOT” Analysis technique one can analyze the present condition and performance of a given organization and can prepares plans for the future.

In the          SWOT Analysis of UBL the following points can be discussed in brief.


Its Strengths are as follows.

  • Having reputation for high customer banking services.
  • 3rd largest Bank of Pakistan
  • Easy asses to branch locality.
  • Large network.
  • Professional and skilled management.
  • Well co-coordinated branch office system.
  • Experienced personnel.
  • Strong loyal customer group.
  • Excellent competitive skills.
  • Sound level of deposits.
  • Excellent promotional and marketing campaigns.




Weaknesses is something an organization lakes at doing that.for UBL  these are.

  • Customer having accounts with small amounts are not given the same attention given to those with large amounts.
  • Security system of UBL main branch bannu very careless
  • Most of employees are overloaded with the work and promotion is also not timely.
  • Low salaries to staff.
  • Political inter presence.
  • Low market value of the bank’s stock.
  • Bad recovery of over due advances.
  • Un-satisfactory working condition of branches.
  • No availability of sophisticated equipments in branches.
  • In efficient system of recruiting and selecting of personnel.

An external situation, which an organization can benefit from,is called opportunity.

  • Increase the serving customer group.
  • Due to efficient and experienced management group,UBL can improve and expend its foreign operations successfully.
  • Enter new markets.
  • Increase product line to serve large range of customers needs.
  • Hiring of well-qualified personnel in the work force.
  • Deployment of sophisticated technology in offices and branches.
  • Increase the number of new local and foreign banks.
  • Low moral of employees.
  • Political interference in the affairs of the bank.
  • Lake of consistence in policies due to Political instability.
  • Low saving rated in the country.
  • Economic recession in the country.

This “SWOT” Analysis is a mirror to the bank o its present condition. From this analysis we can conclude that the bank has done some professional changes in its banking system. The management can develop elaborated strategy planes for capitalization the available opportunities. One area where the bank has done some work is the improvement in customer services.

The bank should maintain principle of professional management and adhere the sound and sophisticated banking rules and regulations in order to build confidence of people in the institution


After the establishment of UBL in the year of 1959, the bank was successful in achieving some of its objectives. In the very first the bank earned a handsome profit.

After the exhaustive era of nationalization, the bank is now transforming to private ownership again. The decade of 60’s was dominated by on exceptional increase in economic activities. This result in bringing various changes in the management and structure of the commercial banks. In area of management more professional 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 had witnessed very bad banking business. To rebuild the bank new professional people were inducted under the leadership of Mr.Zahoor Soomro. Under this leadership the bank introduced incentive schemes and products such as CARAMMAD, ZARAMMAD and UNI-MAHANA, etc, schemes were introduced. The bank also reshaped the product of Rupee Traveler’s Cheque (RTC) with a new name of HAMRAH.

All these schemes were very successful in stopping the capital flight from the country, which was the result of the foreign currency a/cs in May 1998 after the nuclear detonation. Now the bank is focusing on improving the standard of its services 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.

After the conclusion I would like to recommend some points which I think if given due consideration by the UBL management will definitely result in improving the bank’s image, goodwill and position as well. Like other companies, for expansion of its business the bank should focus its activities on increasing its stockholders equity. And also the hank should be obliged and fulfill its obligations to its customer, stockholders and public. Some suggestions may be given in order to give right back/objectives.

  • Development and maintenance of congenial work environment for the bank
  • Achieving more customer satisfaction through quality services.
  • Increasing assets and decreasing expenses through letter management.
  • Playing more responsible role in the social environment of the society meaning full filling the social obligations as well.
























Recommendations are based on the previous sections of a report and are suggestions that the analyst feels are required to be implemented in order to improve further the standing and position of the firm in the financial world. These are thus based on the findings and shortcomings noted in an organization while working with it and then writing on it. Opinions of various capable individuals are sought who through their real life experiences and deep insight are better able to judge whether the course of action adopted by the organization is going to prove fruitful or does it require further improvement in the form of changes in its strategies.

Following are the findings and recommendations for various Departments that were felt are required while consulting the staff members of UBL, Main Branch Bannu.

7.1     Deposits Department

The comparative analyses reveal that UBL has the lowest share of Deposits out of the total in the market. Since deposits are the lifeblood of a bank, it should attract more customers and expand its deposit base in the following manner

7.1.1  Simplification of Procedures

The procedure of opening an account should be simplified. The account opening form should be self-explanatory and include translations in Urdu for those customers who are not well read, since the fact cannot be ignored that many people do not have a good understanding of English.


7.1.2  No Duplication of Activities

Once the account opening form is filled there should be no reason to submit a written application for opening an account, since it not only is a wasteful and time consuming exercise on the part of the customer but also makes filing lengthy.

7.1.3  Incentives for Depositors

Those who deposit large amounts of money or are old customers of the bank should be given free credit lines up to a certain limit. Besides, financial advice should be provided to customers in case there is a change in the market trend before they seek for it.

7.1.4  Integrated Marketing Approach

All the officers in Deposits Department should be involved in marketing and not just opening accounts and maintaining their records. This can be done through improving their personnel relations’ skills and applying the Uni-Service concept of visiting the potential customers at their offices and homes.

7.1.5  Performance Appraisal

UBL should follow the performance evaluation policy strictly and award those who bring in deposits and help it increase its market share. Unfortunately, this has been stated in the bank’s policy but is not being implemented.


The Remittances Department at the Branch is divided into Inland Remittances and Foreign Remittances.

Both these are dealt by separate officers and involve using specific stationary and procedures. The following recommendations are made for this very important Department of the bank


7.2.1  Organizing the Department

The Department is spread over the entire bank with no specific person or desk for the purpose. Usually drafts and telegraphic transfers are made in the cash counter that results in hassle for the other customers. A senior officer detached from the other officers performing inland remittance transactions handles the foreign remittances. It would be better for them to sit together so that they can benefit from his experience and know how.

7.2.2  Centralized Money gram Services

The customers receiving funds from abroad have to wait quite long in order to get their money as the branch sends the application form through fax to the City Branch from where it is confirmed whether the amount has been credited to the Swabi. Branch or not. This confirmation takes long at times and there is always a fear of the bank losing its goodwill in case of lengthy delays. The service should thus be decentralized and the Hub Branch having the authority of directly confirming the amount.


The following recommendations are made for the Cash Department.

7.3.1  Expansion of the Cash Counter

The Cash Department at the Branch needs special attention in the sense that the cash counter is small and becomes crowded when there are more than five to six customers to attend. Customers purchase drafts and other instruments from the very same counter where utility bills are collected and cash is deposited and withdrawn. Hence, if a new counter cannot be built due to certain limitations the utility bills should be collected through a window so that the regular customers do not face any problems.

7.3.2  Extended timings for Cash

In order for the bank to progress and compete with the others in the market, it should extend the time for accepting and withdrawing cash. The customers face great hardship especially when they come from far off places and find that the cash counter is closed for the daily transactions.


The following suggestions are made for this Department keeping in view the problems noted in it.

7.4.1  Career Development

It has been noted that the officers taking bills for clearing do not involve themselves much with the other operations of the bank and thus remain on the very same post and seat throughout their banking career. This is against the modern day policies of organizations giving their employees conducive, rewarding and equal opportunities of prospering and growing with it. Thus, the Human Resource Department at the Head Office should prepare a plan that shows the future growth potential of the employees based on their job performance and evaluation and make it known to all.



7.4.2  Job Rotation

There should be job rotation of employees especially in this department as it was felt that the employees here know quite less as compared to the others. This will enhance their capabilities and help them break the monotony making them find their work more interesting.


There were certain drawbacks in the application and processing for the loan requests that were observed at the branch. The findings and the recommendations are as under

7.5.1 Proper Documentation

If valid documents are not obtained before sanctioning the loan limit, it becomes irrecoverable in case of default by the borrower. It has been noted that at times the related officers oblige the customer by letting him submit the documents later and approving the limit by getting the Disbursement Authorization Certificate from the Credit Committee. It proves to be very time and resource consuming afterwards tracing the borrower to bring in the documents. Therefore, correct and complete documents should be attained before the amount is sanctioned and no leniency shown in any case.

7.5.2  Computerized Record

All the sanctioned cases should have record on the computer as it is easy to access and does not involve the hassles of maintaining and retrieving large and old files. For this purpose, training programs should be organized for the Relationship Managers to enable them to have a basic computer know how. Through this, they would also be able to assess the financial position of the prospective borrower in minutes by using related financial software.

7.5.3  Verification of Security

Physical verification of the security tendered is a must rather than to merely rely on the documents. It had been noted that where the property to be hypothecated/ mortgaged lay in remote areas such as the Gadoon Industrial Estate regular physical visits are avoided by the officers. This and the above factors result in an increase in the non-performing loans of the bank and as result UBL had more debts turned bad as compared to the other banks. For this purpose, regular physical verification must be conducted of securities pledged and hypothecated.


The following recommendations are for the bank as a whole

7.6.1 Development of Managerial Leadership

Good managerial skills make positive contribution towards higher effective results. UBL should focus on the effective utilization of its human resource by applying the modern style of management. This can only be possible if political interferences are discouraged especially when hiring and placing personnel and the recruitment policies are changed to give preference to M.B.A. and M. Com. students.

7.6.2  Tests for Promotions

A sizeable portion of the officers at UBL is promoted without conducting any tests and interviews. This results in undeserving people sitting on the managerial posts and steering the organization away from its goals and objectives in the long run.

7.6.3  Training for Credit Management

Special trainings on credit management should be imparted to the staff dealing in financing activities of the bank. This is very important in light of current loan default scenario in the economy.


7.6.4  Delegation of Powers

Delegating powers to the Department in-charges up to the greater possible extent will most certainly reduce the workload on the managers and they would be able to perform well by taking quick remedial actions where necessary. Besides, the spare time will be spent dealing with matters of more important nature.

7.6.5  Research and Development Department

A Research and Development Department in UBL will help it to adopt new procedures and modern techniques that will help the bank to compete with the others. An R&DD should be maintained at all the Hub Branches that would define the target market for the bank in that particular area and through its findings suggest measures to improve the performance of branches

  1. Introduction of Improved Technologies:

Technology plays an important role in this regard. No body can stop the process of innovations. This process is not limited to any particular branch or area. This is also happening in the field of science and technology. Computer is the output of such activities. Application of computer in the field of banking is not a novelty any more. For this purpose if a separate research wing is established, it will greatly benefit for the bank. Because this wing will Asses new technologies that can be adopted by the bank.

xii.     Communication:

Swift communication in any organization is the inevitable need. But reliable, swift and workable communication is of utmost importance to the bank. All the operation of the bank is very much depending on inward and outward communication. And any disturbance in the free flow of information will bring drastic consequences. So to avoid such situation a more swift flow of information is to be maintained. As this will aid management in taking action in due time, and will also positively affect customer service. So for the written or oral communication are concerned that 7C’s are desired to be considered in bank.



          In every business institution, of closely observed, there are a number of internal and external problems which are faced by the employees on the one hand and particular public on the other. During my two months internship stay in United Bank Limited (Choke Bazaar branch), which is small period by all means to know every thing about a big organization like UBL, I realized that generally the employees face two types of problems.

  • Internal Problems (Administrative Problems)
  • External Problems (Public Problems)
  1. Internal Problems (Administrative Problems):

Administrative problems directly relates to the employees. I personally feel and also heard the employees discussing about the timing of the bank. These timings were not very convenient of the employees coming from ruler and sub-urban areas. It was very difficult for them to attend the office as early. The under development of the country also cannot help peoples to overcome this problem because the mean of transportation and communication are not up to standard. The employees often don’t have their own conveyance and if they missed the buss they cannot enter their names in the good book of in charge.

The second problem related to the time factor was the duration of the working, which is very 1ong and boring for the employees regarding the type of work they are bound to do. Account works if continued the daylong irritates the person who had no time for refreshment/lunch, which is in a normal routine of the banks that an employ remains busy rottenly till late at night.

Often the employees of the bank work above the scheduled time and they are not paid over time they just sit to obey the orders of the higher management.

Another thing, which I observe that they were not, granted leaves as desired because of shortage of stuff and the nature of duty.

After the application of golden hand Shake scheme the problems of shortage of stuff are increased very much because the most of the experience stuff is now retired through GHS Schemes and new stuff is not recruited. Now the same amount of work is done by lesser number of employees and the burden per employee is increased.

Although the computer facilities are available with every branch but they are not utilized properly because of the unavailability of the computer programmers.

  1. External Problems (Public Problems):

The problems, which relate to the public or say clients, who visit bank in connection with their business, are as external problems. In Pakistan literacy rate quite low in backward areas. Nearly 80% of the people are illiterate businessmen. They do not know the real procedure of cash transaction and creates various problems for the bank employees. Some times they ask very false question for nothing during the busy hours.

It is a normal routine for them to bring their friends also having a hope that they will be offered a cup of tea with some sweet. The main problem faced by the managers of the bank for which he has no solution is that these illiterate visitors come to the office and the managers from out side places for example Lahore and Karachi etc for their clients receive use telephones.

It becomes very difficult to send a special messenger to the concerned person for telephone calls and hence disturbs the office routine. Visitors use stationary and envelops frequently. Illiterate clients entered the bank in their routine work badly and produce irritation even they also use the pen of the employees and kept them waiting for some time.


Regardless of it that a problem is of the external nature or that of the internal nature, it is necessary for the bank administration to solve them properly so that the bank can run better towards the achievement of its predetermine objectives. Using the proper way of administration could solve both the problems internal and external.

All the employees working in the bank may be granted motorcycle advance, which may be recovered into easy installments with out interest, while sanctioning the advance, period of the services should not be taken into accounts it closes the way for a newly recruited employee. Also there should be one or two tea breaks for the relaxation of the employees during the work hours.

Approximately one or two clerks may be appointed other then the sanctioned strength, so that on the time when one takes leave could be replaced by the person in extra. This may cause some financial problems to the bank for which an institution always tries to get side off. But it will help the bank in negotiating the public properly, which will increase the good will result in business and profit of bank.

The workers should given leave at any emergent time. This will increase the desire of the workers for work. Proper remuneration to a worker brings positive results for an institution. It is therefore suggested that if anemployee works more than four hours as over time should be given full daily.


  1. Annual Report of United Bank Limited (UBL), 2010-10
  2. Riaz saheb lecturar in IMS UST Bannu.
  • Sir Rahman ullah lecturar in IMS UST Bannu.
  1. Javed khan branch manager of UBL (Parety gate bannu).
  2. Hanif ullah khan customer servecies manager in UBL (Parety gate bannu).
  3. Strategic management by fred R David 10th



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