Executive Summary

United Bank Limited (UBL) leads the banking and financial services sector in
Pakistan. With a customer base of over 4 million, the Bank boasts Pakistan’s
widest network of over 40,000 customer touchpoints; this includes more than
1,400 branches, above 37,000 Omni Agents and over 1,400 ATMs. UBL has
presence in four continents. The Bank is a pioneer in branchless banking with its
UBL Omni platform. Customers across the world have 24/7 access to the bank via
UBL’s world class Internet Banking. UBL was declared Pakistan’s ‘Best Bank for
Corporate Finance & Capital Market Development’ at the Pakistan Banking
Awards 2017.
Table of Contents
Contents
Table of Contents.................................................................................................... 3
Overview .................................................................................................................... 6
Introduction: ........................................................................................................... 6
History: .................................................................................................................... 6
Vision, Mission and Values of UBL .............................................................................. 8
Vision....................................................................................................................... 8
Mission .................................................................................................................... 8
Values ...................................................................................................................... 8
Organization Structure ............................................................................................... 9
Head Office:............................................................................................................. 10
Registered Office: .................................................................................................... 11
Number of Employees: ............................................................................................ 11
Introduction of Departments: ..................................................................................... 11
Corporate banking group: ........................................................................................ 11
Small and medium enterprise (SME) banking group: ............................................... 11
Credit administration department: .......................................................................... 12
Consumer banking group:....................................................................................... 13
Investment banking group: ..................................................................................... 13
Treasury and capital markets group: ...................................................................... 13
International division: ............................................................................................. 14
Financial institution division: .................................................................................. 14
Islamic banking group (UBL Ameen): ...................................................................... 14
Human resource department: ................................................................................ 14

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 Finance division: ..................................................................................................... 15
Information technology department: ..................................................................... 15
Audit department: .................................................................................................. 15
Complaint & Control ........................................................................................................................................15
Products and services of UBL ..................................................................................... 16
Deposit Products: ................................................................................................... 16
Consumer Loans: .................................................................................................... 18
Card Products: ........................................................................................................ 19
Omni – Branchless Banking: .................................................................................... 20
UBL Netbanking: ..................................................................................................... 21
UBL Online: ............................................................................................................. 21
UBL Go-Green: ........................................................................................................ 21
UBL Ameen: ............................................................................................................ 22
UBL Ameen Retail Banking Products: ..................................................................... 22
Other Retail Product: .............................................................................................. 24
Agricultural products: ............................................................................................. 24
Operation / Department in Branch ............................................................................ 25
Cash Department: ................................................................................................... 26
Clearing Department: ............................................................................................. 27
ATM Management Department: ............................................................................. 28
Customer Service Department (Including Account Opening Department): ............. 29
Operations Department: ......................................................................................... 30
Finance Department: .............................................................................................. 30
SWOT Analysis of UBL ................................................................................................ 31
Strengths: ............................................................................................................... 31

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 Weaknesses ............................................................................................................ 32
Opportunities ......................................................................................................... 32
Threats.................................................................................................................... 32
Conclusion ................................................................................................................. 33
Recommendations ..................................................................................................... 34
References and sources ............................................................................................. 34

5
 United Bank Limited
Overview

Introduction:
UBL is a private commercial bank and its head office is located in I.I.
Chundrigar Road, Karachi. United Bank Limited (UBL) leads the banking and
financial services sector in Pakistan. With a customer base of over 4 million, the
Bank boasts Pakistan’s widest network of over 40,000 customer touchpoints; this
includes more than 1,400 branches, above 37,000 Omni Agents and over 1,400
ATMs. UBL has presence in four continents. The Bank is a pioneer in branchless
banking with its UBL Omni platform. Customers across the world have 24/7 access
to the bank via UBL’s world class Internet Banking. UBL was declared Pakistan’s
‘Best Bank for Corporate Finance & Capital Market Development’ at the Pakistan
Banking Awards 2017.

History:
It began with a vision, a vision of unparalleled progress and unmatched
excellence true to the spirit of the era! On 7 November 1959, Pakistan
witnessed an event that would change the way we banked forever. It was not
just the inauguration of UBL’s first branch at I.I. Chundrigar; it was also the
birth of the culture of service, a culture of innovation and a culture of financial
excellence!

By June 1960, shortly after six months of opening its doors to the public,
UBL had branches in: Karachi, Dacca, Lahore, Lyallpur, Chittagong and
Narayanganj

In 1963, UBL became the first bank in Pakistan to have a branch overseas-
on William Street in London, United Kingdom. True to our promise of providing
service and care beyond the ordinary to our customers, UBL and You have had a
history. The first saving scheme for school going children was launched as early as
1960 or the formation of Pakistan’s first Staff College of employees in 1964, UBL,
through the motivation of its staff and the trust of its customers,continued to
grow at a spectacular pace. In 1967, UBL had hit the dawn on information in
terms of technology, by introducing computer banking to Pakistan and in 1971,

6
UBL once again paved the way by launching 3 online branches in Karachi. The
newly formed state of Pakistan was witnessing the boom of industries and
commerce – cannoned by a bank that believed in the potential growth of
Pakistan. Small wonder then, by 1978, UBL had a pledged economic department,
had acquired two international banks. UBL also launched supervised credit and
small loan schemes for small to medium sized firms as well as agriculture and had
made for itself, a strong international presence for we had branches in 4
continents.

Throughout its history, UBL has kept pace with- and often exceeded the
changing needs of changing times. Keeping the tradition of innovation alive, UBL
introduced Pakistan’s first credit card, the UNICARD in 70’s and left its mark by
launching the Pak Rupees traveler cheques in 1971. Staying true to its roots,
UBL was also the first bank to have an Islamic banking division and the first to
introduce e-banking facilities at Hajj.
In the 1990’s the government of Pakistan decided to change the face of
banking by creating a blueprint to privatize UBL. At this point, financial experts
were called on board to set the bank back on course, and with implementation
of relevant changes, the government privatized the bank in the year 2002 –
Best way and Al Ayaan collaborated, forming the cornerstone for the UBL of
tomorrow.

Today, UBL opens its eyes to a new vision every day, a vision of resurgent
excellence and renewed commitment to our customers. 58 years into our
glorious history – UBL is now part of one of the world’s largest financial
services groups.

7
 Vision, Mission and Values of UBL

Vision
To be a world class bank dedicated to excellence, and to surpass
the highest expectations of our customers and all other stakeholders

Mission
Be the undisputed leader in financial services for our customers
Most innovative and fastest growing bank in targeted businesses
Continue to diversify across chosen geographies
Achieve operational excellence with the highest level of
compliance Consistently create leaders through inspired human
capital Contribute positively to the communities we operate in

Values
Customer first
Honesty of purpose
Teamwork
Excellence
Meritocracy

8
 Organization Structure
This is the organizational structure of the bank

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 Departments Hierarchy
Corporate Banking Group

Small and Medium Enterprise (SME) Banking Group

Credit Administration Department

Consumer Banking Group

Investment Banking Group

Treasury and Capital Markets Group

Limited

International Division
United Bank

Financial institution Division

Islamic Banking Group (UBL Ameen)

Human Resource Department

Finance Division

Audit Department

Information Technology Department

Complaint & Control

Head Office:
I.I. Chundrigar Road,
Karachi – 74000, Pakistan.

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 Registered Office:
13th Floor, UBL Building, Jinnah Avenue,
Blue Area, Islamabad

Number of Employees:
Exact number of employees is not known but over 15,000+ workers are
employed in the bank till to date.

Comments on the Organizational Structure:

UBL has a centralized organizational structure, in which every branch has to
report to the area manager which then report to the regional manager. The
regional manager then transfers the report on the monthly progress to the main
head office. All the orders, policies and procedures are followed by the branches
which are developed in the head office by considering the prudential regulations
of State Bank of Pakistan and banks own polices.

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 Introduction of Departments:
Following are some of the major departments of UBL.
Corporate Banking Group:
Corporate banking group deals with the multinational companies, large
corporate customers which includes both private (i.e. international or large firms)
and public sector (government institutes) clients. Highly skilled and qualified
workforce is required for this group as it manages some of the largest accounts of
the bank. So this group formulates its strategies and polices in such a manner
which they are attractive for their current customer base and also for the new
clients. Some of the services provided by the group are syndicate financing,
financing against liquid securities, project financing, working capital financing,
term finance certificates (TFC’s) investment, cash management services, letter of
credit etc.

Small And Medium Enterprise (SME) Banking Group:

Commercial banking group is present in almost every branch of the bank.
This group deals with the needs and requirements of medium and small
businesses. Usually needs of those businesses are much smaller than the large
corporate clients. Specified terms and conditions are applied for every SME which
are according to the bank’s policies. Some of the things which are put under
consideration are business nature, its network, its growth in the coming years and
high profit turnovers.

12
 Credit Administration Department:
This department deals with the credit or advancing facilities provided by
the bank. It keeps the record of all the loan documents, necessary securities and
documents needed for the issuance of loan, fulfillment of all the legal aspects,
managing the credit policies and keeping the loans less than the 60% of total net
worth (or customer deposits), management and monitoring of credit portfolio,
recoveries of mark ups or interests etc.

Consumer Banking Group:

Consumer banking is done in every branch of the bank. It specifically deals
with the individual customer services which includes both making deposits and
personal loans. Different products are provided or offered to the customer, each
of the products is designed according to the target market’s needs. Main
products which are offered to the customers are credit card, debit card, deposit
accounts, home loans, car loans, business loan for an individual etc. Products are
renewed and developed according to the customer’s needs and bank’s policies.
Workforce is regularly trained and kept up-to-date because they are in direct
contact with the customers.

Investment Banking Group:

This group was established in 2002, and UBL was the first bank in Pakistan
which provided investment banking products and services. This group consists of
19 members which are highly skilled. It provides services in debt and capital

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markets i.e. TFC’s investments completely by the bank or partially, project and
structured finance i.e. development of risk assessment, equity and advisory i.e.
buying and selling of equity or assets.

Treasury and Capital Markets Group:

This group deals with the foreign exchange in different currencies on behalf
of its customers, manages the balance sheet and liquidity requirements of the
bank, deals with derivatives like forward rate agreements, manage the share
capital of the bank etc. The human resource of the group is highly qualified and
manages the crucial capital and money aspects of the bank.

International Division:
This department deals with the management of international branches of
UBL. All the operations related to overseas branches are handled by this
department which includes global credit risk management and international
transactions. Every product is designed according to the demands of
international clients and managed by this division.

Financial Institution Division:

This division manages the financing activities of the bank for the financial
institutes including both banking and non-banking institutes, i.e. financial needs
of local or foreign banks, insurance companies, DFI’s etc. This division also
manages the financial institutes risk management unit and gives advisory
services to the clients for different management problems.

14
Islamic Banking Group (UBL Ameen):
This group deals with the operations of Islamic Banking Business and
develops Islamic banking products and services with Shariah Advisors and makes
policies and procedures. It is a separate division in the bank which manages its
operations, services and products and report to the bank. The workforce of
Islamic banking is trained regularly. Murabaha, diminishing Musharaka etc. are
the services and related products are provided by them.

Human Resource Department:

This department is responsible for the recruitment, selection and hiring of
the workforce. Eligibility criteria, selection process, job specifications and training
courses etc are developed by this department. For selection and hiring purposes
different tools and techniques are introduced, like introduction of interview
technique based on behavior of candidate.

Finance Division:
This division manages the book keeping and financial statements
preparation. It develops polices for the allocation of funds in the bank for its
operations like financing and projects budget analysis. It analyze the market and
competitors to improve its polices for better working.

15
Information Technology Department:
UBL has internal software which is called CREAMS (credit risk
environment’s administration and management system) which collects and
updates date into the system which is required for other purposes like valuation
of assets and making reports etc. The software is supported by Oracle software
applications, which includes Oracle E-Business Suite Human Resource
Management system, Oracle Payroll, Oracle General Ledger and Oracle Fixed
Assets Management System. These applications have increased the efficiency of
the banking operations and reduced the time taken to done those operations by
10,000 man hours with the reduction in paper work.

Audit Department:
Board Audit Committee is responsible for the auditing of every branch of
the bank. The internal auditing team visits every branch according to its
scheduled routine or sometimes pays surprising visits. They check the operations
of the branch and its overall environment. When any deviation from any bank
policy is noted by the audit team then it is reported to the Head Office, after
which recommendations are made to the branch. These audits are held to
improve and control the environment and operations of the branch and for the
proper following of the policies of the bank.

Compliance & Control Department:

The compliance department's ultimate goal is to ensure that a bank does not
cross the lines drawn by legislators, regulators or its board of directors. Since
banks' activities vary, duties also vary, but each bank should clearly and
16
specifically have the responsibilities for its compliance department outlined.
Common tasks include monitoring the bank's activities and controls and
identifying and analyzing risk areas. This may include assessing and testing the
adequacy of the bank's policies and equipment, such as security and risk
assessment tools. The compliance team may also design and implement solutions
to address any identified risks, develop compliance programs for new regulations,
and oversee employee training programs.

Products and services of UBL

Following are some of the products and services
Deposit Products:
UBL provides a variety of deposit products which are designed according to
the needs of the individuals, either someone wants to open a saving account or a
businessman wants foreign currency account. Every product’s features are
designed at a level to achieve maximum fulfillment of customer’s requirements.

UBL Mukammal Current Account is a current account for the individuals,

traders, businessman and other commercial entities. It has no minimum
balance restriction and also provides some of the services free of any
charges which are ATM debit card but annual fee is charged, cheque book,
account statement, go green SMS alert, internet banking, country wide
inter branch online transactions.

UBL Business Partner Account is a current account which can be used by

individuals, sole proprietors, partnerships and government. At least Rs.

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 10,000 are required in the account as minimum balance otherwise Rs. 50
will be deducted from the account every month. Free services provided are
deposits and withdrawals in both cheque and cash, debit ATM card annual
fee, cheque book, issuance of rupee travelers cheques, one locker free for
first year if it is provided in the branch facility.

UBL Profit and Loss Sharing Savings Account (UBL Rupee Transactional
Account) is a savings account which can sure the security of savings and
also the provide profit on it. Some of the features are No limitation on
withdrawals Share of profit is credited on half-yearly basis Profit is
calculated on monthly average balance

UBL UniZar Foreign Currency Savings Account is a savings account which is

opened and maintained in foreign currency. UBL is providing this account in
following five currencies and the minimum deposits required for each
currency are
USD (US Dollar): 500
EURO: 400,
AED (UAE Dirham): 2,000
GBP (Great Britain Pound): 300
SAR (Saudi Arab Riyal): 2,000

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 The profit is calculated on the basis of minimum balance at the end of each
month and the profit is given bi-annually and no restrictions on number of
transactions.

UBL UniZar Foreign Currency Current Account is a current account which is

maintained in foreign currency. Account can be opened in five currencies
i.e US Dollar, Euro, UAE dirham, British Pound, Saudi Riyal. Minimum
amount required for the opening of the account is same as in UBL UniZar
Foreign Currency Savings Account. No restrictions on number of
transactions. Zakat is exempted in this account.

UBL UniZar Foreign Currency Term Deposits Receipt is a term deposit

account in which customer is offered different terms/periods for the
maturity of deposit. Maturity periods are three months, six months and
twelve months. The account is offered in a range of foreign currencies.
Upon maturity the deposit along with profit is given back to the customer.
Attractive return rates are provided and profit is given on the booking
month’s rate.

UBL Regular Term Deposit Receipts is a term deposit account which is

provided for a range of tenors starting from one month to six months and
one year to ten years. Rate of return is renewed for every month on the 1st
and attractive rates provided to the customers. Renewal option is also
provided before encashment of the TDR. Profit is given every month and
TDR can be en-cashed before the time of maturity.

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 UBL Mahana Aamdani Savings Account is a savings account for the
individually or jointly operated, partnerships, Joint Stock Company,
government institutes, self employed individuals, salaried and retired
individuals, housewives, trusts etc. the account can be opened with Rs. 100
and have no minimum balance requirement. Profit is calculated on monthly
average balance and credited to the account.

UBL Mahana Aamdani Term Deposit is a specially designed term deposit

account for the customers who are dependent on the monthly fixed salary
or income. Minimum investment required for this account is Rs. 25,000 and
no upper balance amount is fixed for the account. Profit is paid monthly,
renewal and encashment before maturity options are available. Tenures
given for this account are three months and six months, one year, three
years and five years.

UBL Basic Banking Account is a current account which is suitable for students,
housewives and pensioners. This account has no minimum balance limit and is
opened with Rs. 1,000. Limit for deposits and withdrawals is applied on this
account which is two for each, any transaction above the limit will be charge
with Rs. 50 each. Unlimited ATM withdrawals from UBL ATMs. Zakat is exempted
from this account.

UBL First Minor Savings Account is basically opened for the child aged between
one day and 18 years. This account can be opened with minimum balance of Rs.

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100. Profit is calculated on the monthly balance. UBL First Pocket-Money Card is
issued which is used to withdraw from the profits generated on the principal
amount. A debit ATM card can also be issued on the principle amount. Check
book is issued on the names of the child and the parents or guardian jointly.

Consumer Loans:
UBL offers a variety of loans for different purposes like education, marriage,
car, house etc. Some of the products are described below:

UBL CashPlus, My Personal Loan is a need based product with non-end use
means it can be used for any personal purpose which is up to the customer.
Loan can be issued up to Rs. 2 million, which can be returned on flexible
repayment terms. Rates are attractive and no collateral requirements are
needed. Loan is issued to the person who has a minimum net income of Rs.
25,000, age between 21 to 60 years and for the period of one to five years.
Salaried individuals whose salaries are being credited in UBL are offered
this loan.

UBL Address Home Loan Facility is a financing product for the construction
or buying of the new home. This product is available in Karachi, Lahore,
Islamabad, Rawalpindi and Faisalabad. A minimum of Rs. 1,000,000 loan is
issued to the individual who are resident of Pakistan, have minimum
monthly income of Rs. 50,000, age between 23 to 65 years. Any salaried

21
 individual or self employed businessman can apply. Rates charged are fixed
by the bank; rates fluctuate due to KIBOR (Karachi Inter-Bank Offered Rate)
changing the rates. Applicable rates are 3.5% + KIBOR for salaried persons
and 4.5% + KIBOR for self employed professional or businessman. The loan
is paid back in installments for the tenor between 3 to 20 years.

UBL Drive is a car financing product which is available for all new and
used cars both local and imported. Loan issuance maximum limit is Rs. 5
Million. Repayment is done between one to five years. Salaried person
who has a permanent job, salary of Rs. 35,000 per month and age
between 21 to 60 years is eligible for the loan.
Card Products:
Following are some of the card products provide by UBL.

UBL Wiz is the first prepaid debit card of Pakistan. It can be used locally and
internationally where Visa and MasterCard are accepted. It can be used for
online shopping and shopping at outlets and withdrawal of cash at ATMs.
Minimum balance per card is Rs. 200,000. Minimum online shopping is for
Rs. 100,000 per day and ATM withdrawal of Rs. 40,000 per day. Card can be
reloaded through UBL ATM, UBL Omni Dukan, UBL Netbanking and through
contact center if saving or current account is present in UBL.

UBL Visa Mega Wallet Debit Card is the product issued to the existing or
new account holders, any customer with a UBL Premium Debit MasterCard
can also apply for UBL Visa Mega Wallet Debit Card. It can be used in

22
 Pakistan and all around the world where Visa and MasterCard are
accepted. Cash withdrawal from ATM is Rs. 40,000 per day and shopping
limit is of Rs. 100,000 per day.

UBL Credit Card is accepted worldwide which allows instant cash

withdrawal. Free travel accident insurance is also provided whenever
someone purchases airline, train or bus ticket, in case of any mishap
occurred during the travel. The amounts covered in case of any accident
are Rs. 3.5 Million for classic card and Rs.7 Million for Gold Card. E-
statements and SMS alerts are send to the customer.

UBL Premium Debit MasterCard is also a worldwide recognized card with

the acceptance of MasterCard. Highest transaction limit for this card is per
day Rs. 400,000 per day, which includes ATM withdrawal of Rs. 200,000 per
day and point of sale (POS) transactions or internet shopping of Rs. 200,000
per day.

Omni – Branchless Banking:

UBL Omni is a product which is available for every citizen of Pakistan in the reach
of UBL Omni Dukan. Dukan which are selected by the bank for this product are
present in more than 900 cities of Pakistan. This product has overcome the
limitation of banking services and made them available to the rural and urban
areas. Any person with CNIC and a mobile number can open up this account. The
mobile number of the customer becomes his bank account number. Omni
account can also be opened with Omni mobile app which can be downloaded by

23
the customer. UBL Omni account provides a variety of services which includes
cash deposit and withdrawal, utility bills payment, receiving or sending of
money, postpaid mobile bill payment and many more. An ATM card is also issued
to the Omni account holders which can be used anywhere in Pakistan.

UBL Netbanking:
UBL Netbanking is an internet banking portal which allows its account holders to
manage their bank accounts from anywhere in the world. This service is available
for 24/7 for all the clients. Bank holders can view their deposit, credit card and
loan accounts. Online shopping, bills payment both utility and phone, funds
transfer, investment in UBL funds etc. can be done with UBL Netbanking. This
service can also be availed on the smart phones by downloading the Netbanking
app.

UBL Online:
UBL Online is an electronic Banking system which allows its customer to access
and see the information of their bank account anytime and anywhere from the
world. It provides statements of account, account balances and transaction
history of the bank account.

UBL Go-Green:
UBL Go-Green is an initiative step taken by the bank to protect its surrounding
environment specially trees. The purpose of this service is to use less paper and
save trees. Instead of paper, the information can be received on the mobile
phone or computers. It provides:
24
UBL Go-Green E-Statement allows the customers to receive their bank account
statement anywhere in the world. The statements are sent to the e-mail address
provided by them on daily, weekly, monthly, quarterly and semi annually basis.

UBL Go-Green Merchant Acquiring is the service which is provided to the

businessman and merchants. This service accepts payments from the internet
through the website of clients and secures them. Anyone can pay for the
merchants through the Visa or MasterCards, debit or credit cards.

UBL Go-Green SMS Alerts are sent to the customer whenever cash deposit,
cheque deposit/withdrawal, cash transfer, ATM withdrawal and funds transfer
and POS transactions are made. The service is provided on the registered mobile
number given by the customer.

UBL Ameen:
UBL Ameen offers Islamic banking services and products which are designed
according to the Shariah Standards for the demands and needs of the customers.
It provides Retail Banking, corporate banking and UBL Ameen Drive Car Financing
products and other services.

UBL Ameen Retail Banking Products:

Some of the products are discussed below:

Ameen Asaan Current Account can be opened with Rs. 100. All the funds

25
 receive in this account are on the basis of Qardh (borrowed amount)
and will be only used in Shariah compliant businesses. No minimum or
maximum limit is applied on the account.

Ameen Asaan Saving Account is an account which can be opened with Rs.

100. Funds received in this account are treated on the basis of Mudarabah
and used in Shariah compliant business. No minimum balance is required.
Profit is calculated on the monthly average balance and paid semiannually.

Ameen Minor Saving Account is designed for the children under the age of
18 years. Funds are accepted on the basis of Mudarabah and used in
Shariah compliant businesses. Profit is paid monthly and calculated on the
basis of daily average balance. No limit on number of transactions and
minimum balance.

Ameen Certificate of Islamic Investment is an investment product which

gives profit payment options on a fixed deposit certificate. There are three
profit payment options, (i) at the time of maturity option in which
certificate purchased should have a minimum amount of Rs. 10,000 and for
the time period of one month to 8 years, (ii) bi-annual payout option (July
and January) in which certificate purchased should have a minimum
amount of Rs. 50,000 and for the time period of one, three, five and six
years, (iii) monthly payout option in which certificate purchased should
have a minimum amount of Rs. 50,000 and for the time period of one, two,
three and five years.

26
 UBL Ameen Drive Car Financing is a diminishing Musharakah product in
which bank and the customer buy the car in joint ownership. The customer
makes an agreement with the bank to pay the rent to the bank for the
usage of the car and some of the principle amount to gain the ownership of
the car. It is available for all the new and used cars of local or international
brand and also for the imported cars. Any salaried person with Rs. 35,000
monthly pay, age between 21 and 60 years can apply for this. While
businessman can apply for this product is their monthly income is Rs.
50,000 per month and age between 21 to 65 years. The rental or payment
period is between one to 5 years.

Other Retail Product:

Some of the other products include insurance products, payroll disbursement
product etc.

UBL BetterLife-Bancassurance EFU Life provides insurance products to its

customer by partnering with the EFU insurance company, which includes
UBL BetterLife Child Education Plan, UBL BetterLife Marriage Plan, UBL
BetterLife Savings Plan, UBL BetterLife Retirement Plan and UBL
BetterLife Takaful Plans.

UBL Pay Partner is an electronically managed payroll disbursement system

which is available for the organization having a limit of 50 numbers of
employees minimum. The salary of employees can be disbursed into UBL
account or accounts at other banks.

27
 Hamrah is rupee traveler’s cheque which is offered in denominations of Rs.
10,000 and Rs. 5,000. These cheques have speciall Coded printing and a
Rainbow Effet for security. Theses cheques are available for all citizens, an
account with UBL is not necessary.

Agricultural products:
UBL offers agriculture based financed products, which includes financing for the
production of major or minor crops, development of land, purchase of equipment
and machinery and livestock. There are two basic categories of agriculture loans,
farm loans and non-farm loans.
Farm Loans includes production loans and development loans.

Production loan is available for major and minor crops in Pakistan. It is issued to
the farmers to get agricultural inputs like seeds, fertilizer, sprays etc, minimum
amount for the loan is Rs. 30,000 and can be changed according to the farmer’s
needs.

Development loan are financed for land improvement, tube wells, cold storage
etc. Minimum amount for loan is Rs. 30,000 and can be increased. It is also issued
for the tractors, mini trucks etc. which is issued on Rs. 100,000 as minimum limit
and Rs. 1,500,000 as maximum limit.

Non Farm Loans includes livestock financing and fisheries financing. In livestock
financing, loan is issued for dairy farming, meat farming, construction of sheds
etc. Minimum amount for loan is Rs. 50,000 and maximum limit according to the
need.

28
 Operations / Department in Branches

Basics of the working operations and processes of the bank. The branch has
following working departments.
Cash Department
Clearing Department
ATM Management Department
Customer Service Department (Including Account Opening Department)
Operations Department
Finance Department
Cash Department:
It handles the cash in the branch, the outflow and inflow of the cash
through different transactions in the bank which mostly includes cash receiving
and cash payment procedures. Cash can be received through
Deposit slips
Bills, cheques
Telegraphic transfer, demand draft and pay-order

Cash payments are made against payment slips, cheques, pay-order and demand
draft. In both of the cases, while paying or receiving the cash, the instruments
are checked and verified by the officer. Instruments are also checked if they are
past time or post time, in neither of the cases no payment is made. Signature is
also verified.

One of the major instrument through which cash is deposited into the
account is deposit slip. The customer fills the slip which has following
details. Account number
29
Account holder’s name
CNIC number
Signature of bank officer and depositor
Contact number
Amount to be deposited in both words and figures
A copy is given to the depositor after the deposition of cash.

Clearing Department:
Clearing is a process of transfer of funds from one branch of a bank to the
other branch of another bank, which do not involve cash into the transfer process
but it is done through the services of NIFT (National Institutional Facilitation
Technologies) which is provided by the State Bank of Pakistan. A clearing house is
present in the SBP which handles all the matters related to it. Clearing
instruments are cheques, demand draft, pay order, traveler’s cheque. Clearing is
made in two ways

Inward clearing in which bank’s cheques are received by the bank which were
given to the other bank. In other words cheques are drawn on the bank. As the
cheques are drawn on the bank, the clearing of those cheques decreases the
deposits in the bank. For the clearing of the cheque, customer account s verified,
checked if the instrument is not tempered with and all the requirements are full
filled then the cheque is cleared i.e. funds are transferred to the other bank
through online transfer. If the cheque has to be returned then the reason for
return is mentioned in the clearing slip.

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Outward clearing is the process in which other bank’s cheques are deposited to
the bank. In this case, cheque is drawn by the bank on the other bank. In case of
outward clearing, deposits of the bank are increased. Outward clearing is of two
types

Local cheque clearing is the clearing of the cheque drawn on other banks
located in the same geographic area.

Intercity cheque clearing is the clearing of the cheque drawn on a bank outside
the local geographical area.

In this process of outward clearing, an employee of NIFT comes to the bank

and collects all the cheques and other instruments along with clearing slip is also
attached. The cheques applied in the outward clearing process are stamped with
three types of stamps.
Crossing stamp (on front)
Endorsement stamp (at the back)
Clearing stamp

Other items necessary for clearing are, date, signature verification and amount in
both igures and words should be correct. When the process of outward clearing is
done then the transactions are made through online transfer from the bank
account by NIFT. When clearing is confirmed by the NIFT then the accounts are
debited or credited in the branch.

Cheques are returned on different reasons which are frozen account,

limited balance etc.

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ATM Management Department:
ATM management department mainly focuses on the functioning of the
ATM machine, cash requirements and security. ATM manager checks the cash
outflow from the machine and refill the machine when the cash falls than a
specified limit. Every day before closing, the cash balance in the ATM is checked
and refilled, so that the machine will work overnight. Filling of the ATM machine
is done by getting cash from the bank vault through debit voucher which is for the
bank use only. The debit voucher for the issuance of cash for ATM from vault is
signed by two authorized persons so that any misdealing will be avoided. Date,
amount and signature of the authorized persons are required.

Customer Service Department (Including Account

Opening Department):
Customer service department handles the customer and tries to solve their
problems and help them. This department also performs the functions of account
opening. The account opening procedure is done in following steps:

First the account opening form is filled which should be written neat and
clean, no over writing or cutting should be made. The information filled should be
easily readable.

The customer is offered with different products and according to his needs
and requirements he selects the product which is suitable for him. After the
selection of the product the account opening form is filled.
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 First the title of account, date, currency of the account is written. Whether
the account will be single or joint account is decided according to the customer’s
needs Now the customer’s personal information is filled, his name, his father’s
name, gender, marital status, date of birth, occupation and nationality is noted.
Any proof of its residence is needed.

The documents needed are CNIC, and signatures of the customer on the
signature specimen card provided by the bank. A deposit slip is also filled for the
initial deposit in the account. In case of shaky signatures or illiterate person,
customer’s photographs are also required. A key or secrete word is also needed,
which is a minimum six character word. The secrete word is preferred to be
mother’s name of the customer. This word adds a security to the account because
very few people know the name of the mother.

Other documents are required for other specified products, like for a
businessman to open an account his income statement ns other documents are
required and for a pensioner a document called life certificate is required with
other documents. Next of kin is also mentioned in the account opening form so
that is case of any mishap the account information is shared with the next of kin
person. SMS alerts, debit card, cheque book, credit card, locker, e statement and
other services are filled in the account opening form.

Then a part of the account opening form is specified for the bank. There is a
section called Know Your Customer. Questions are asked from the customer,
his/her source of funds etc. and then the verified data is transferred into the

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system. Account number is allotted to the applicant’s account and account is
opened.

Operations Department:
Operations department handles all of the operations of the branch. Every
major transaction and important processes are handled by this department.
Provide best telling services to the customers. It makes sure that the branch is
working according to bank’s policies and procedures. It manages customer service
and tries to provide good quality service and service without any mistakes or
errors. Its handles customers complaints and solve them as a priority.

Finance Department:
Fiancé department is responsible for the overall management of the book
keeping record and accounting activities. It keeps record of daily transactions and
manages funds for the daily operations. Funds allocation is done by the finance
department. The advances are made through this department. All the process for
the allotment of loan and till its verification is done by this department. After the
allotment of loan the repayments are also made sure by this department and
necessary measures are taken for the assurance of the payments like collateral is
taken at the time of issuance of an advance etc.

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 SWOT Analysis of UBL
SWOT stands for strengths, weaknesses, opportunities and threats. SWOT
analysis of any organization shows the internal strengths and weaknesses,
opportunities and threats of an organization which makes it better to understand
the current position and how it can achieve better by making new and improved
policies.

Strengths:

Every product of bank is designed by giving special importance to

customers’ needs, which makes them attractive to the customers.

New products are developed and existing products are improved regularly. Highly
trained and coordinating workforce is an essential part in bank’s progress. Every
person from any level o the society can use the products of the bank as they are
unique for every customer, like products for agriculture sector, salaried,
businessman person etc. It has a wide branch network which spreads across the
Pakistan and abroad. Highly effective and efficient management information
system which is supported by one of the best software, Oracle. It is the 2nd largest
privatized bank of Pakistan, and it has been awarded with best bank of Pakistan in
2016 Bank Awards of Pakistan. Branchless banking, Omni is making banking
services available in the rural areas of Pakistan. It is the 3rd largest bank according
to the deposits, in kistan. Good profitability ratios.
A very strong competitor in the market. Effective and fast services proved both
online and offline. Highly coordinated and efficient internet banking system. It
is involved in both retail and corporate banking.

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Weaknesses

Administrative expenses are 74% of the income before taxes. Time consuming
documentation processes and procedures. Promotions are made on the yearly basis
without considering the output and performance levels. Low number of workforce
in a branch which is located in highly populated or active area. No separate training
center for the up to date training of the workforce. Security system in most of the
branches is not highly secure, i.e. bank robberies in Karachi.

Opportunities

Growing opportunities in the real estate sector and other areas of the
market, the bank should try to grasp those opportunities by making investments
in different sectors. Expansion of network of branches in the world. Enter into
new market segments by developing new products like student loans. Increase
the product rage for the attraction of new customers. Try to manage and
reduce the administration expenses to increase profit. Increase number of
branches in highly populated areas to achieve more customers.

Threats

New banks are starting to operate in Pakistan may oppose as a threat

to bank. Lack of up to date training of workforce might cause the bank to lose
its potential customers. Lower level of employment will cause a decrease in
the customer base due to decrease in the living standards and living income.
Conclusion

UBL is the bank showing high growth in the market. Since 1991 it is showing
positive growth and even in the worst economic conditions, the bank managed to

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continue its operations. UBL profit has increased by 4% over the prior year. UBL
Omni is growing at a fast rate through 42,000 agents in the whole Pakistan. Net
provision against interest income has decreased by 58% with respect to last year.
Total assets grew up to 12% in accordance with the last year and deposits grew
up to 11%. 2016 was a good year for the bank and the bank managed to maintain
its position in the market. Efficient management team and high level of
dedication to their work has made the bank to achieve new heights. Bank has
variety of products and services from which every customer and potential
customer can take advantage of and continues to give quality products and
services.

Recommendations

Overall performance of UBL is quite good and the bank is showing growth
in the market and continues to maintain its high quality status. Some of the
recommendations are made for the further improvement in the baking
procedures.
Lengthy procedure
Decentralization
Modern Technological Techniques
Friendly environment Mood Swings
Reduce Expenses
Updated IT infrastructure

Information Technology should be introduced in all branches to

enhance the efficiently A separate ladies Counter should be there
Divide Equal work to employees

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Lastly, they should take suggestion in managerial decision to promote them to
make decisions.
References and sources

http://www.ubldirect.com/Corporate/index.aspx
http://www.google.com.pk

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