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Submitted To ; Miss. Sundas Shaheen

Submitted By ;

Muhammad Ibrar (Finance) 41
“I dedicate this work of mine to my
Teachers, My Parents and to all My
Friends, who truly help and guide me in
completing this project. “
Master of commerce (M.COM) is a program in which we studied about business and
finance. In Pakistan the banking sector is at the maturity stage and banking sectors are the
best institutes in which we are easily understand the practical experience. Master of
commerce gives us and opportunity to touch the practical experience about business and
finance as the internship. The Internship program in an important part to give students an
opportunity to have experience of practical field. Unless and until the students experience
the novelty of practical work, their knowledge of what they study in theoretical courses
remains incomplete. The most important point in an Internship program is that the student
should spend their time in a true manner and with the spirit to learn practical orientation of
theoretical study framework.

This Internship Report is on my Six weeks practical training at (UBL) UNITED BANK
LIMITED CHUNA WALA HASIL PUR. In this Internship Report I have tried to give
details about the United Bank Limited, working and the functions of different departments
of the bank.

First of all, I thank my respected teachers for providing me

comprehensive knowledge about Commerce Courses and also for

providing me the opportunity to complete my Internship Program in

UBL to enhance my practical knowledge about banking sector of

Pakistan. I am also indebted to the followings because without their

help, I would not be able to achieve this practical knowledge.

Chapter No.1

Purposes of Study-------------------------------------------------- 12

Scope of Study------------------------------------------------------ 12

Limitations of Study------------------------------------------------ 12

Methodology of Report--------------------------------------------- 13

Scheme of Report---------------------------------------------------- 13

Chapter No. 2

Development Finance------------------------------------------------ 14

Seasonal Finance------------------------------------------------ 15

Commercial Finance----------------------------------------- 16

Chapter No.3

Account Department--------------------------------------------- 17

Chapter No.4

Birth of UBL---------------------------------------------------- 19

Subsidiaries---------------------------------------------- 19

Functions of UBL---------------------------------------- 20

Management of UBL--------------------------------- 23

Function of Hierarchy--------------------------------- 24


Deposit Department---------------------------------------- 25

Remittances Department-------------------------------------------------27

Muhammad Ibrar 6
M.Com (Finance)
Credit Department of UBL------------------------------------- 29

Clearing Department--------------------------------------------------- 31


Introduction-------------------------------------------------------------- 34

Financial Analysis----------------------------------------------------- 38

Common size analysis of Balance Sheet--------------------------- 40

Common size analysis of Income Statement----------------------------41


Qualitative Analysis of UBL-----------------------------------------------47


SWOT Analysis-------------------------------------------------------------50

PEST Analysis--------------------------------------------------------------53


Marketing Departments UBL--------------------------------------------56


Recommendations & Suggestions-------------------------------------58


Personal Learning-------------------------------------------------- -----59



Muhammad Ibrar 7
M.Com (Finance)
This is an internship report regarding the different products of UBL. It starts with an
introduction about Banking followed by the introduction of UBL. It gives a briefing about all
the financial products of UBL.

This report also includes the different features of these products. All the Services
provided by UBL has also been discussed and explained along with the strength and
weaknesses of the organization.

This report shows and internal architecture of the working of the UBL’s
Business. It gives a detail about the supporting department that has helped the business in
their daily working.

Also it discusses the objectives, policies of the organization. There are also some
suggestions/recommendations for UBL.

Muhammad Ibrar 8
M.Com (Finance)

Students of M.Com studying courses leading to Master degree in Commerce are

required to undergo an internship programme of Six Weaks duration. This is an
essential academic requirement. The internship is followed by comprehensive report
writing, required to submit to the Islamia University Bahawalpur Bahawalnagar
campus In Department of Commerce. This report is properly evaluated on the basis of
its description and analytical capabilities by internal and external examiners. I did my
internship in United Bank Limited Chuna Wala Branch.


The purpose of the study is to work in real life situation and learn banking practice by
doing. In this context its objectives are:
i. To analyze banking operations i.e. operational analysis, financial analysis.

ii. To develop concrete and feasible recommendations.

iii. To improve report writing skills.


The study is confined to banking operations. An attempt, along with all its limitations,
to collect financial data and general statistics of the bank has been made. Keeping in
view the purpose of the study, which is to make an acquaintance with practical doings
in the bank, this seems a comprehensive effort.


Muhammad Ibrar 9
M.Com (Finance)
It is to admit that the study attempts only those aspects, which are closely relevant to
the purpose of the study. Facts and figures, which otherwise might be equally
important, but not having a direct bearing on the conclusions arrived at this study,
have been ignored.


Both primary and secondary data were used in compilation of the report.
Methodological tools used were:
i. Primary Data:
 Personal Observations.
 Discussion with Bank Personnel.

ii. Secondary Data:

 Brochures/ Manuals of the bank.
 Annual Report

 State Bank Foreign Exchange Manual

 Bank internship reports on UBL available in library.

 Journals, newspapers and books.

 Internet.

Muhammad Ibrar 10
M.Com (Finance)
Development finance

Loan provide for tractors agriculture instrument tubewell turbine, land leveling etc
Tractor loans are recover within five year, on half yearly basis other agriculture instrument
loans repaid within three year 25% borrower contribution the borrower can apply for loan,
the borrower worth can be decide on its property
If a person have10 acher land
Then the patwari make its unit with some specific process these unit multiply 400 and have
some value or amount then 80% of this value can obtain by borrower for this process
following thing are required
Procedure for Loan Apply

1. Khasra-e-girdawari:this the actual record of cultivated land

2. Register haqdaran-e-zameen :ownership of land
3. Agri credit officer (ACO)
4. The work of ACO is to visit the site and investigate about the borrower also visit in
tehsil for legally documents for land and actual land record
5. Proposal
After investigating the ACO submit a report to head office in this report the following thing
or requirements are mentioned
• Term and condition
• Security support
• Worth of land loan amount

Bar on agri land:

Muhammad Ibrar 11
M.Com (Finance)
After approval the proposal the branch entries in “PASSBOOK” and verify this passbook by
patwari and request the patwari pleases transfer this land temporary toward bank

Agreement IB

• Bank and customer agreement term and condition specify.

• Loan amount specify
• By back price
• Agreement date of issue and date of end
• Signature of customer
• witness signature
Facility letter
• Pass book
• Zeerbad certificate
• Mutated fard
Attach these document with form a case make and this case forward to head office
If the head office approval this case then bank charge interest 10 to 12 %
This mark up or interest is on daily basis

Seasonal financing:

Loan provide on seasonal crops like cotton ice factories, oil mills, agri related industry.

Loan provide on different crops

Sugar cane: 8000 per acher
Wheat: 4000 to 5000 per acher
Rice: 4500 to 5000
Potatoes: 1000 to 1200
Commercial financing:
Muhammad Ibrar 12
M.Com (Finance)
Loons provide for shops medicine sere, business etc the following requirement are necessary.

• Property documents
• NOC: no objection certificate
• NEC: non encumbrance certificate
• Small amount estimate by bank
• Above 1 million CA estimator
• EM/%RM: property for security

In case of renewal
• Application request for renewal loan
• Balance sheet
• Profit loss calculation.


Muhammad Ibrar 13
M.Com (Finance)
Account Department

In simple word account department performs the following functions.

The daily working of all the departments is completed and compile in this department for the
preparation of cash cum day book for the ultimate preparation of daily statement of affairs of
the branch.

• In A/C department all the subsidiary ledgers are include maintenance of income and
expenditure subsidiary ledgers are prepared.
• General’s types of statements called by RHQ and head office are prepared.
• Income statement and expenditure statement at the end of each month is prepared.
• If there is any mistake in any record it is checked and removed in A/C department.

Generally there are two types of maintaining of account:

• Journal System
• Voucher System
In commercial industrial institution journal system is used. In journal system entries are
reported on journal books and then posted to main ledger.
In banking voucher system is used and for every transaction voucher has to be prepared.

Voucher preparation:
Vouchers are prepared in
• Cash
• Transfer
• Clearing

Record books

Muhammad Ibrar 14
M.Com (Finance)
The books used for record keeping in accounts department are:
• Payment book
• Scroll book
• Cashier’s books
• Transfer book
• Journal ledger books

Payment book:

At the end of business all the instruments are entered in paying book. Cashier writes grand
total of these instruments in words and figures signs in full on it and send it to the officer.
Officer check and put initial in front of each and every entry and signed in full on grand total.

Scroll books

It is designed for credit vouchers i.e. for the amount deposited against the issuance of TTs or
DDs etc.
Receiving cashier book

Party goes to cashier and deposit the cash. Cashier takes the cash enters the voucher in
receiving cashier’s book signs in full on it and send it to the officer. Officer puts his initial in
front of each and every entry and affix cash received stamp on it.
At the close of the business officer after checking receiving cashier’s book will sign in full on

Transfer book

Muhammad Ibrar 15
M.Com (Finance)
Transfer book is used to keep record of that transaction in which there is no cash
involvement. the amount of one cheques is transfer from one account to other account in the
same bank, the account in the same bank, the account from which the cheques will be drawn
is written on right page which is Dr. page and the account in which the cheques is deposited
is written on left page of transfer book which is Cr. Page.

Journal ledger:

The daily transactions are entered in this ledger. The ledger has two portions:
Dormant section
Current section
Dormant section contained the accounts in which there is no transaction for a long period.
While current section is for running account.

Supplementary preparation:

A/C clerk accumulate the different voucher transaction wise on a sheet and consolidates into
one figure called supplementary.
There are two types of supplementary.

i. Debit supplementary
ii. Credit supplementary

Debit supplementary is used for debit voucher expenses and credit supplementary is used for
credit voucher expenses. These are of red and green color respectively. From this
supplementary cash cum daybook is helpful for the preparation of statement of affairs of the


Muhammad Ibrar 16
M.Com (Finance)
Requirements for Account Opening
(i) Account Opening Form
It is a form that contains the account number, date, title of the account introducer’s name and
address, special instruction (if any) information about Zakat deduction and mode of delivery
of checkbook etc. Then this filled form is submitted in bank, the bank admits the signatures
of the applicant and verifies the introducer’s signatures (specimen is enclosed in Appendix)
(ii) Specimen Signature Card This card contains account number, title of the account
and the specimen signatures of the account holder. When this form is submitted in
bank the bank officer admits the signatures of the applicant and keeps this specimen
card in record
(iii) Cheque Requisition Slip
This is a request made by the client to the bank to issue him a checkbook containing
number of leaves mentioned. When this slip is submitted in bank, the bank as per instruction
the account of the person is debited or the client pays the amount in cash. If the account is to
be debited then party debit voucher is prepared which is actually intimation to the party that
her account has been debited. But if the amount paid is in cash, then cash is debited which is
actually cashier’s stamp. Regardless whether the account is debited or cash is debited the
account heads of Central Excise duty and Sales Tax are credited.


Following are the requirements for opening of an individual account.

1. A photocopy of National Identity card.
2. Filled Account Opening Form
3. Three photographs if the person is not able to sign.


Muhammad Ibrar 17
M.Com (Finance)
For this account in addition to above said documents national ID card of all the
account opening parties is required. Also in the box of special instruction it should be clearly
mentioned that one person’s signatures will be enough to get it honored the check or there
should be signatures of all the parties.


Along with the other document, “partnership deed” is also required. A partnership deed is a
document that shows the nature of the business that will be carried out by the partners,
number of the partners, their share. Who will run the business, what will be the profit and
loss sharing ratio, what will be the initial investment of each partner, who will be the limited
partner and who will maintain the account with the bank. According to bank point of view
the most important thing is the person’s name who will maintain the account with bank.
National identity card of the person who will maintain the account is required.
Along with the other documents, sole proprietorship declaration is also must. In this
declaration the proprietor of the concern will declare that he is the sole proprietor of the
If someone is interested in opening an account of a private limited company then in addition
to above documents following documents are required.


Muhammad Ibrar 18
M.Com (Finance)
On November 9, 1959, UBL was notified and included as a private schedule bank with
authorized capital of Rs. 20 million; issued and paid up capital of Rs. 10 million divided into
1 million shares of Rs. 10/ each. Currently BOD and president/ CEO Mr. Amar Zafar Khan
being a member of this newly formed set up manage UBL. Chairman His Highness Shaikh
Nahayan Mabarak Al Nahayan and Deputy Chairman Sir Mohammed Anwar Pervez are the
two supreme controllers of the bank’s affairs.

UBL has a large network of branches, which extends to the remotest areas of the
country. In December 1983, there were 1623 branches whereas in 1974 it had only 1238
branches and in October 2009 these figures show total number of 1112 branches3.
UBL has been very active in increasing its overseas branches network. The first
foreign branches were established in London in 1963. Now UBL has branches in Bahrain,
Qatar, Saudi Arabia, United Arab Emirates, Yemen Arab Republic, UK Switzerland, Egypt,
Oman and The United States. These branches are playing a significant role in channeling
home remittances and foreign trade of Pakistan.


UBL has four subsidiaries, namely:

 United National Bank Limited (UNB), UK

 United Bank AG (Zurich), Switzerland

 United Executers and trustees Company Limited

 United Bank Financial Services (Private) Limited


Muhammad Ibrar, (2010) Internship Report On UBL Chuna Wala Branch Hasil Pur
Muhammad Ibrar 19
M.Com (Finance)
UBL is a commercial bank, which transacts the business of banking in accordance with the

provisions of BCO, 1962. Section 7 of the Act authorizes banks to engage in the prescribed

form of business. In the light of this section UBL’s functions can be categorized as under:

 Agency services

 General Utility Services

 Underwriting of loans raised by the Government or public bodies and trading by

corporations etc.

 Providing specialized services to customers, and

 Hajj-related services.


The impressive growth and development, which UBL achieve, present it undoubtedly the

most dynamic and progressive. In a very shorter period of time it became one of the leading

banks overtaking several other older and its competitor banks4. The major contributions5 the

bank ahs made are enlisted below:

 Record setting performance and commitment to serve the customers

 Personalized service and dynamic approach

 Catalyst of changes

 Professional management

 Modern banking policy

 Human resource development

 Small loans (or) micro credits

Muhammad Ibrar, (2010) Internship Report On UBL Chuna Wala Branch Hasil Pur

Muhammad Ibrar 20
M.Com (Finance)
 Pacesetter in economic research established in 1967, department for economic

 Utility bills collection

 Credit cards (unicard-1970)

 Travelers Cheques (Humarah-1971)


UBL has taken leading start in the introduction of computers in (1966-1968) in important

cities. Its three computers centers Rawalpindi, Lahore and Karachi are equipped with the

modern mainframe computers of various capacities. Every branch has been decorated with


The use of computers has enabled the bank to save time and efforts raise efficiency
and deliver the goods speedily to its customers. This has also allowed the bank to maintain its
leadership within the industry.

 UBL - On line System7:

Themes of this service is “Access any time, anywhere, any device” which symbolizes
comfort, convince and connectivity. UB-Online a web based service that can be accessed
through multiple media link like, (i) PC via internet (00) Mobile phone with WAP or free
SMS) (iii) Personal Digital (iv) assistants and (v) Plain telephone
o Accounts statement & electronic data interchange

o Graphical analysis

o Alerts service /facility, search facility and activity long

 Money Gram facility:

Muhammad Ibrar, (2010) Internship Report On UBL Chuna Wala Branch Hasil Pur
Muhammad Ibrar 21
M.Com (Finance)
The bank has recently employed money gram service system, which can affect money
transfers within minutes. Similarly the system used for local transfer of money transactions is
called uni-remote.
 Hajj service:
Keeping to its tradition is august 1982 provided electronic facility at its Hajj booth
and has installed now modern computers at designated branches (Hajis) and increasing
efficiency. This facility has reduced the service time to less than six minutes per Haji
compare to about half-an-hour to 45 minutes per Haji earlier.

Muhammad Ibrar 22
M.Com (Finance)

Chart 2.1 Senior Management of UBL

Sheikh Nahyan Mabarak

Nahayan chairman

Sir Mohammad Anwar

Pervez Deputy Chairman

Amar Zafar Khan


M.A Manna
Deputy CEO
Risha Moheyuddin
Nauman Hussain Global Treasurer
Director Operations &
Utilities Khalid Munawar-ud-din
Mansoor M. Khan Head Credit Policy
Head Corporate Banking Supervision
Muhammad Ejazuddin
Shaharyar Ahmed
Audit Chief
Head Investment Banking
Aman AzizMehmood
Siddique Mehboob A.Khan
Shahid Waqar
Head Commercial bank
Rukhasana Asghar
Global Head Human
Head International
Operations (Dubai)
Ali sameer Ameer Karachiwala
Chief SAM (domestic) Chief financial Office/HCA

Muhammad Ibrar 23
M.Com (Finance)

Organizational Hierarchy of UBL


Deputy Chairman

Board of Directors

Executive Committee

Managing Director




Officer Grade-I

Non Clerical Clerical Staff Officer Officer

Staff Grade-II Grade-III


Muhammad Ibrar 24
M.Com (Finance)

As per the definition of “Banking” under see 5(b) of BCO 1992 one of the main functions of

a bank is to accept deposit. Deposits are the backbone of any bank; other functions of the

bank primarily depend upon the type and size of deposits.

Function perfumed by cash and deposit department in UBLChuna Wala Branch

Chuna Wala Branch accepts deposits under the following three accounts.
i. Current account

ii. PLS Saving account

iii. Terms Deposits

Opening of Account:
To open an account in UBL the customer will have to fill an account opening form in front of
bank officer. He has to sign in all required places in front of the officer.
Documents Required in Account Opening:
i. N.I.C Copy.
ii. Account opening form (provided by bank)

iii. Two photograph (in case of illiterate person)

iv. Specimen Signature card (Provided By Bank)

v. Cheque Requisition Form

vi. Introduction of Account.

Types of Account:

a. Individual Account
In this account a single customer operates the account. The banker will run the
account according to the rules, but if the customer gives special instructions the Bank will
have to follow it.

Muhammad Ibrar 25
M.Com (Finance)
b. Joint account:
In this type of account two or more than two persons will open the account. The
account will be operated by one account holder in case of (either of the survival). If the
instructions are not given, all the account holders will have to sign the check.


A) Current Account:
These are non-profitable demand accounts. The account can be opened with minimum
amount of rupees 1000/-. These account are usually maintained for business purpose. Due to
enormous competition UBL has introduced daily profit current account for corporate clients
called (UNISEVER) minimum balance required is Rs. 100,000/-. If minimum balance
requirement is not met, bank is authorized to recover predetermined charges.

B) PLS Saving Account

These accounts were intended with the aim of encouraging thrift among people. These
accounts can be opened either in Pakistani rupees or in few major currencies of the world.
Bank offers (4%- 6%) return on these accounts. The basic feature is the profit and loss
sharing as according to non-interest based banking system. These accounts can be opened in
the name of; individuals, joint names, trust accounts, charitable organizations.
Unlike current accounts, Zakat is applicable on local currency saving accounts. Minor’s
accounts can be opened on the condition that their guardians shall operate these accounts.

C) Term Deposits:
Term deposits are also called fixed deposits. These can be with drawn after a specified period
of time. Interest is paid to the depositor on all fixed or term deposits. The rate of return varies
with the duration for which the amount is kept with bank
There are two types of term deposits.

Muhammad Ibrar 26
M.Com (Finance)
STDR’S – Special Term Deposit Receipt (local currency):
Special Term Deposit Receipts are issued for different periods of maturity ranging from
one month to 5 years, having attractive returns. There is no limit on denominations. NTDR’s – Notice Term Deposit Receipt (local currency):

These are term deposit with special features that these can be withdrawn any time but
after giving a predetermined and pre agreed early notice.


Current business trends demand fast movement from one geo-graphic end to another. Latest
technology and telecom data transmission has made it possible to make such transactions
with in minutes. UBL Chuna Wala Remittances Department performs following functions.

Demand draft (D.D)

D.D is a negotiable instrument issued by branch of the bank drawn on other branch of the
same bank.
A) Procedure For D.D.:
Purchaser is asked to fill in an application form duly singed by applicant. Three things should
be maintained in the form.
 Name of Payee

 Place of payment

 Amount of D.D

Commission is charged on D.D as bank income. The applicant is asked to deposit the cash
specified on the application form to the teller. After depositing cash the remittances incharge
prepare a D.D. That is singed by two officers must having power of attorney.

Bank also provides this facility to general public who don’t have account in UBL. They will
have to submit a N.I.C copy along with D.D application form.

Muhammad Ibrar 27
M.Com (Finance)
Telegraphic transfer (T.T):
Transfer of funds to another branch of the same bank with the help of test numbers. If the test
number agrees the bank make payment to the party.
A) Procedure for T.T:
The procedure for T.T is same as D.D. But in D.D it is given on a printed-paper and singed

by two officers but, in T.T, only test number is given to the customer.

Mail Transfer (MT)

When the money is not required immediately, the remittances can also be made by MT. Here

the selling officer of the bank sends instructions in writing by mail to the paying bank for the

payment of a specified amount of money. The payment under transfer is made by debiting

the buyer’s account at the sending office and crediting it the recipient’s account at the paying

bank. UBL takes mail charges from the applicant where no excise duty is charged.

Pay Orders:
Pay order is banker cheque issued favoring a named beneficiary. The issuance bank is
discharged by payment in due course. Application for the PO stamped and the customer’s
account balance is checked or cash received for the amount PO and other charges. Pay Order
leaf is typed and crossed if required and signed by two authorized persons. Thereafter it is
delivered to the customer. PO can be cancelled at original purchaser’s request in writing and
surrender the instrument, which then marked canceled along with other documents and prior
Supper Traveler Cheques:

UBL has launched R.T.C Brand named “Hamrah” in November 1996. These are issued to

applicants with varied denominations without excise duty and commission. When issued HO

account is credited and on encashment the same account is debited. RTC’s lost cases are

communicated to HO and client is either repaid or new RTC’s are issued to him/her.

Muhammad Ibrar 28
M.Com (Finance)

UBL Credit Policy:

Credits operations are undertaken in accordance to bank’s credit policy. The policy strictly

prohibits violation of SBP/Local central bank’s rules and suggest financing of self

liquidating, cash flow supported and well collateralized transactions, which equate the

principle of lending (safety, liquidity, dispersal, remunerations and suitability).


Facilities offered by UBL Chuna Wala

 Running Finance (for one year)

 Demand Finance (3to 5 years)

Procedure for Financing from UBL

When a party comes for financing, banker will ask the following questions.
In this the party mentions the purpose; they want to apply for the finances. No lending is
done with out purpose.
The party must have some specific running business i.e. general merchandise, construction
business etc.
The second question arises of the cash flow that how much flow is generated by the party
from the current business.

The bank will secure itself against the lending. There can be two type of security.
 Commercial
 Residential

Muhammad Ibrar 29
M.Com (Finance)
The bank prefers commercial security. Relationship Manager (RM) is mainly responsible for
the relationship between the bank and party. He acts like a bridge between the two.

In the first instance the party would prepare the following property documents.
 AKS Shajarah
 Naqsha Tasveeri
 Approved Building Plan
 Tresh fard
 Intaqal Naqal
The party is asked to contact any valuator on the panel of UBL. ICM&L and Tajak Builder
are on the panel of UBL Chuna Wala. The valuator will visit the site and set market value
and FSV of the said property. He prepare report of at least three pages. These document sent
for one page legal opinion to any layer on the panel of UBL. Having clear legal opinion RM
start preparing credit Approval (CA). The documents are singed by the RM & AM and then
forwarded to UBL RHQ in Peshawar. Here SRM examines the CA if he found some
exception he will send it back to the respective Rm.

RM rectifies the acceptation and send it back to SRM. SRM studied and pass it to credit
officer. He has three hours of time to study the CA and if found correct then he pass it to
another credit officer. After his examination the CA is passed on to the credit risk manager.
He checks the CA and after signing it sent to CAD. He forwards the CA to SCO. Whose
office is at UBL RUCO at Lahore, after his signature the C.A is sent back to RCAD.

RCAD make a check less list and asked the RM to contact the party to complete the said
documents they are.

 Letter of continuity
 Personal Guarantee
 Letter of hypothecation of stock
 D.P Note
 Mortgage Deed
 NIC of executants and witness

Muhammad Ibrar 30
M.Com (Finance)
 Stock report
 Insurance policy
 Party profile
After completion of charge document RM send it to RCAD when they found it correct, they

issues DAC. A copy of DAC is sent to RM and NICF account is opened and debit transaction




Bank can make payments of only open Cheques on the counter payment. Payment of cross
Cheques cannot be made on counter its payment is possible through collecting bankers. The
functions of clearing department are divided into two main classes.
 Inter Branch Transaction
 Inter Bank Transaction

Procedure of Clearance of Cross (Cheques):

Whenever bank receives a Cheque of other bank from the client he cannot make payment on
the counter. The first job banker has to perform is to put a special crossing across the face of
cheque. By special crossing cheque is secured. If it is stolen the paying banker would not
suffer because of non-endorsement. On the back of the cheque the stamp is made of payee
account will by credited on realization. It is signed by authorized person. Along with the
cross cheque the customer has to fill the deposit slip. The half part of slip is given back to the
customer. after the special crossing and is necessary endorsement the banker write the
amount along with cheque number on paper and attach with each slip. Then again on he
smile paper the amount of all the Cheques along with the bank names are added and attached
to cheque presented for clearing, and advice is also attached with the cheque presented for
clearing. The following entry is passed on sending the cheque for clearing.
Bill lodged for clearing ……. Dr
Muhammad Ibrar 31
M.Com (Finance)
Bill for collection ………. Cr

The Cheques are sent on the same day for clearing. The bank receives it on other day. The
paying bank receives the receipt and the amount is credited in the respective account. The
paying banker passed the following.

Bill for realization. ……. Dr

Bill lodged. ………. Cr

The other entry passed its Dr. HQ account and Cr Party account.

I B C:

It means “Inter Branch Transaction” when UBL received a Cheque a drawn on the customers

of his branch; first they will Cheque the amount in the account on which Cheque is drawn. Of

the required amount is available in the account they will match the signature on the Cheque

along with their SS card. If all the requirement are completed the bank will send an IBCA to

the bank from which Cheque is sent

L B C:

LBC means local branch Cheques received for collection. UBL Chuna Wala, received

Cheques from their spoke braches as well as from other UBL branches of the country, drawn

of any other bank in Chuna Wala. They send the Cheque to responding bank and after

clearing the Cheque through clearing houses (which is NBP) in Chuna Wala. They send LBC

advised to the bank from which the Cheque was received. The following entry is passed after

sending LBCA.

NBP a/c ………. Dr

Ho a/c………. Cr

Muhammad Ibrar 32
M.Com (Finance)

When the bank receives the Cheque from its customer or from any other spoke branch drawn

on any other bank of any other city. They sent the Cheque to the UBL main branch of that

city, after receiving OBCA the bank will passed the following entry. In case of his own


Ho a/c………. Dr

Customer a/c………. Cr

In case of spoke branch

Ho a/c………. Dr

Spoke Branch a/c………. Cr



These section efforts have been made to cover all relevant aspects of the financial

performance of UBL. Overtime comparison and Common Size analysis are carried out with

Muhammad Ibrar 33
M.Com (Finance)
the view to extract concrete conclusion to describe financial standing and performance of the



Revenue Recognition

Returns on advances and investments are recorded on accrual basis. Debts securities
purchased at premium or discount are amortized over their maturity periods.
Dividend income is recognized on accrual basis of declaration of dividend up to the year-end.
Returns on classified assets are recorded on receipt basis. ccrual basis.

These items are stated net of provisions against non-performing loans as per SBP PR – IIIV.

• Investments:

UBL classify its investments as stated below;

a) Held for trading

b) Held to maturity
c) Available for sale-other than the above two types
In the light SBP regulations quoted securities are shown at market values and any changes
arising are taken to profit and loss account only upon actual realization.

Unquoted securities are valued at the lower of cost and break up value and difference is
charged to income. Provisions for diminution in the values are made after permanent
impairment, if any.

• Fixed Assets and Depreciation

a. Owned
Such assets are showed at their cost or revalued amount less accumulated
depreciation and impairment loss, if any. No depreciation is charged on freehold land.
During the year, amendment related to section 235 of the Companies Ordinance 1984,

Muhammad Ibrar 34
M.Com (Finance)
surplus on revaluation can now be reversed to the extent of incremental depreciation
charged. As a result such differentials are now transferred to retained
earnings/accumulated losses as per the Securities and Exchange Commission of
Pakistan’s (SECP) clarifications.
Gains and losses on sale of fixed assets are included in income currently, except that
the related surplus on revaluation of fixed assets is transferred directly to retained
earnings/accumulated losses.

b. Leased
Assets under financial leases are stated at cost. The outstanding obligations are shown as
a liability. The finance charges are allocated to accounting periods in a manner so as to
provide a constant periodic rate of charge on the outstanding liability.

• Taxation


Provision is based on the taxable income for the year or minimum tax computed on the basis
of turnover, whichever is higher.
The bank accounts for deferred taxation on major timing differences, using the liability
method in respect of those timing differences, which may reverse in the foreseeable future.
Deferred tax debits are, however, recognized only if there is reasonable expectation of
realization of the amount.
c. Foreign Currencies:
Balances are translated into rupees at the applicable rate of exchange prevailing at the
balance sheet date or where applicable at contractual rates. During year transactions are
converted into Pak rupees applying the exchange rate at the date of respective transactions.
Gains and losses are included in income currently.
d. Deferred Cost and Lease Payments

These are amortized over a period of five years. Rental obligations under operating leases are
charged to profit and loss account as incurred.
Muhammad Ibrar 35
M.Com (Finance)

The bank is primarily subject to interest rate, credit and currency risks. The bank has

designated and implemented a frame work of controls to identify, monitor and manage these

risks are as follow;

Currency Risk Management

For the purpose of efficient management of this risk, the group enters into ready, spot,

forward and swap transactions in the inter bank market and with the State Bank of Pakistan

in order to kedge its assets and liabilities and cover its foreign exchange position.

Credit Risk Management

Out of the total assets of Rs.183, 139.879M assets subject to credit risk amounted to Rs.178;

958.323M. The bank’s major credit risk is concentrated in textile sector. To manage it the

bank applies credit limits to its customers and obtains collaterals. Credit risk in the portfolio

is monitored by the CRM who formulate appropriated policies and procedures to ensure

building and maintaining quality credits and efficient credit process.

The bank’s financial institution risk management unit assesses, recommends financial

institutions and also controls cross border/country risk.

Interest rate Risk Management

The group is mainly exposed to mark up interest rate risk on its deposit liabilities and its

loans and advances and investment portfolios. The asset liability committee of the bank

reviews the portfolio of the bank to ensure that risk is managed within acceptable limits.

Most of the loans and advances portfolio comprises of working capital, which are reprised on

Muhammad Ibrar 36
M.Com (Finance)
a periodical basis. The group’s interest is limited since the majority of customer’s deposits

are retrospectively reprised on a six monthly basis due to the profit and loss sharing



UBL employs diversified investment portfolio. The bank invests its funds both in risk free

assets as well as in risky assets. This enables it to minimize its unsystematic risk to a great


UBL values its security holding on market value, in accordance with the guidelines given in
SBP circular. Any unrealized surplus/deficit arising on such revaluation is taken directly to
“Surplus/Deficit on revaluation of securities” in the balance sheet. Where an active market is
not available, securities continue to be stated at cost. Provision for diminution in the value of
these securities is made after considering permanent impairment, if any, in their value.

Where securities are sold subject to commitment to repurchase them at a predetermined

price, they remain on the balance sheet and a liability is recorded in respect of the
consideration received in “Borrowing from Bank” or “Deposits” as appropriate. Conversely,
securities purchased under analogous commitments to resell are not recognized on the
balance sheet and consideration paid is record in “lending to financial institutions” or “loans
and advances” as appropriate.


The operating profit before provisions and write offs increased by 80%, where as the profit

before tax and extraordinary items increased by 62% as compared to last year. The increase

is mainly attributed to 14% increase in the net revenue from funds (NRFF), 10% increase in

fee and brokerage income and 75% reduction inn write offs/provisions for non-performing

assets as compared to year 2008.

Muhammad Ibrar 37
M.Com (Finance)
Performing advances increased by Rs. 2 billion as compared to 2008 while NPAs decreased
by 53%. Presently NPA constitutes 7.4% as compared to 14.6% in 2008 of the total loan
portfolio. The branches reduced to 1077 from 1112. The bank handled over Rs. 96 billion of
import and export business during the year, an increase of 24.7% as compared to last year.


Financial statements are the principal means of reporting the financial condition and results

of operations of a business entity. These statements are meant to assist various parties in

decision making who are interested in the activities of the business. These statements are

means to an end of helping stakeholders in decision-making. To improve the quality of

decision making proper analysis of these statements helps a lot. Financial statements analysis

helps in determining the financial conditions at any particular points in time and

effectiveness of operations of a firm during a specific period.

The various stakeholders of business are interested in the analysis of financials statements.
But the focus of interest of all is not the same. For example, creditors and credit reporting
agencies are interested in finding out the credit worthiness of the firm to which they have
extended credit or intend to extend credit. Short term creditors are interested in short term
liquidity of the business and long term creditors are interested in the long term cash flow
which the firm can generate over the long period of time. Investors are interested in the
firm’s ability to sustain profitability over a period of time. Government agencies analyze
financial data for tax purposes. The internal users of financial statements like management
also analyze financial data for planning and control.


Common size analysis is an analysis of financial statements where the total assets divide all

balance sheet items of asset side and all credit side balances divided by all liability items, and

all income statement items are divided by net sales/revenues. Common size analyses are

Muhammad Ibrar 38
M.Com (Finance)
extremely helpful to highlight changes over the time in financial performance and financial

conditions of the company. The table shows common size analysis of the balance sheets for

the years 2007, 2008 & 2009.

The common size analysis given in the table shows that there have been improvements in the
current assets in 2009 as compared to 2008, about 17%. But there has been decrease in fixed
assets of about 16%. The main reason for this change is increase in short term investment
showing a constant increase as a percentage to total assets. This implies that the bank is
concentrating now more on non-interest income and the interest rates are constantly falling.
Short-term advances have shown a significant change of 15% whereas total advances show a
total change of only 6.3%. This is very significant to note that major decrease has occurred in
long-term performing and non-performing advances.
There is decrease in long term assets of about 17% which mainly cause the decrease in long
term advances which are about 13% and 6% decrease in long term investment.
On the liability side the total current liability has shown change of about 4%. The main
reason for which is increase in current deposits, which are about 6%. The long-term liability
of the organization is also decreased by 4%.

Common size analysis of consolidated Balance Sheet

Rs in '000 Common size (%)
assets 2007 2008 2009 2007 2008 2009
Cash/Bal. With Banks 3609108 70463707 35591280 21.5 17.93 15.79
lending to F.Is 4370006 3627557 19050791 2.6 1.89 8.45
Investment (ST) 9190430 33883311 29580252 5.5 17.66 13.12
Advances-Performing (ST) 39489369 43632117 89292490 23.4 22.75 39.61
Other Assets 8641263 2641471 3509351 5.1 1.38 1.55
Total Current Assets 97782157 118177074 177024164 58 61.61 78.54
Investment (LT) 19388131 33623058 25007413 11.5 17.53 11.09
Advances-Performing (LT) 28477494 26423058 10312297 16.89 13.77 4.57
Advances-Non performing (LT) 11813855 5739798 3671991 7.01 2.99 1.62
Operating fixed Assets 2864018 2831534 3884990 1.7 1.48 1.72
Deferred Tax Assets 8297500 5026459 5486357 4.92 2.62 2.43
Total L.T Assets 70840998 73643958 48363048 42 38.39 21.45
Total Assets 168623155 191821032 225387212 100 100 100
B/Payables 1540592 1847025 2991269 0.91 0.96 1.32
Muhammad Ibrar 39
M.Com (Finance)
Borrowings ST 4004130 174533 174533 2.37 0.09 0.07
Deposits - Current 102568752 118167469 152580240 60.83 61.6 67.69
Lease and Others 8838842 9986608 5933743 5.24 5.2 2.63
Total Current Liabilities 116952316 130175635 161679785 69.36 67.86 71.73
Fixed Deposits 38747422 43998916 37252204 22.98 22.94 16.52
Other Long term Liabilities 21264831 5212755 10883720 6.21 2.72 4.82
Total LT Liabilities 49219400 49211671 48135924 29.19 25.65 21.35
Total Liability 166171716 179387306 209815709 98.55 93.52 93.09
Shareholder's Equity
Share Capital 22481680 5180000 5180000 13.33 2.7 2.3
Reserves 3960453 4258947 4712569 2.35 2.22 2.09
Accumulated Losses/Profits -27282709 -722387 454403 -16.18 -0.38 0.2
Minority Interest 1168264 1271700 1412932 0.69 0.66 0.62
Surplus on revaluation 2123751 2445466 3811599 1.26 1.27 1.69
Total 24541439 12433726 15571503 1.45 6.48 6.9


The common size analysis of income statement is given in the table. Which shows that the

UBL has been able to control its interest or mark up expense? As a result of decrease in mark

up expense as a percentage of total revenues the gross profit margin has shown a trend of

continuous increase. The increasing G/P Margin shows efficiency of the bank in controlling

cost of sales (Markup expense) and better strategy of pricing, products and services.

The provision for non-performing loans has a decreasing trend making no provision for non-
performing loans and diminution in value of investment, which increases the profit of current
year. The reduction in provision is a good sign, which shows that the bank is recovering its
disbursed advances. It shows the good credit management of the bank.

Muhammad Ibrar 40
M.Com (Finance)
There is a great increase in non-markup income, which is about 23%. Among its individual
components investment income has shown a large increase as a percentage of sales.
Non markup expenses also show a rising trend in absolute amount though the common size
in percentages has shown a mixed trend due to the changes in revenue figures. The non-
performing expanses also increased to about 25%, which is a very high percentage, but the
other aspect of this is that it increased the efficiency and credit management of the staff.
Like gross profit the net profit margin before tax has also increased with 24% rate. The
extraordinary item expanse has not occurred in 2009 that caused a slight increase in the net
income. The tax expanse is increased about 7% because of the increase in profit. Loss
brought forward from previous year is reduced by 14%.
The common size analysis of the UBL is clearly showing that the bank has shown a lot of
improvement in its performance. The organization shows profit for the first time in the last 5
years which is a positive sign and it will build up the moral of the employees by which they
can work more effectively and efficiently increasing the performance of the bank.

Common size analysis of consolidated Income Statement

Rs in Millions Common size (%)

ITEMS 2007 2008 2009 2007 2008 2009
Mark up revenue 11468 11385 9269 100 100 100
mark up expense 6347 5476 1931 55.35 48.09 20.83
gross profit 5121 5909 7338 44.65 51.9 79.89
provisions and B/Debts 1263 746 564 11.02 6.55 6.08
Net Mark up Income 3858 5163 6773 33.64 45.34 73.07
Non Mark up Return
Commission & Brokerage 1097 2008 2142 9.57 17.63 23.1
Dividends/Exchange and Others 1818 1514 2803 15.85 13.3 30.24
Total Non Mark up Income 2915 3522 4945 25.42 30.94 53.34
Total Income 6773 8686 11718 59 76.2 126.42
Non Mark Up Expense
Administrative 4669 5879 6639 40.71 51.64 71.62
Other Provision and Charges 632 51 556 5.15 0.44 6
Muhammad Ibrar 41
M.Com (Finance)
Total non mark up Expenses 5301 5930 7197 46.22 52.08 77.64
Profit Before Extraordinary Items 1472 2756 4521 12.84 24.2 48.77
Extraordinary Items -7200 25 0 62.78 0.21
Profits before tax -5728 2781 4521 49.95 24.44 48.77
Taxation 1739 1319 1704 15.16 11.59 18.38
Profit/Loss after tax -7467 1462 2818 65.11 12.84 30.39
Share of Minority Interest 6 10 21 0.06 0.09 0.22
Accumulated Loss Brought Frd. 19821 27283 722 172.2 210.64 7.78
Adjustment against sh. Capital 0 25202 0 221.36 0
Appropriation and Transfers
Surplus on revaluation of Assets 0 238 0 2.1 0
Transfer to Statutory Reserve 2 332 527 0.02 2.91 5.68
Accumulated Loss Brought Frd. 27283 722 454 237.9 16.34 4.9


The user of financial statements finds it helpful to calculate ratios when they interpret

company’s financial statements. A financial ratio is simply one quantity divided by another.

Ratios focus on special relationship between two items of balance sheet, income statement or

one from each. Ratios make it easier to understand a specific relationship between various

items of financial statements then looking simply at the raw numbers themselves. The

number of financial ratios that might be created is virtually limitless, but there are certain

basic ratios that are frequently used, these ratios can be placed into six different classes.

 Liquidity Ratio
 Asset Turnover Ratio
 Leverage Ratios
 Coverage Ratios
 Profitability Ratios
 Market Value Ratios
The calculation and interpretation of these ratios of financial statements of UBL are as

Muhammad Ibrar 42
M.Com (Finance)
Financial Ratio analysis
YEARS 2007 2008 2009FORMULA
Current Ratio 0.84 0.91 1.15Current Assets / Current Liabilities
Asset Turnover 0.07 0.06 0.04Markup Revenue / Total Assets
Debt to Asset 0.99 0.94 0.93Total Debt / Total Assets
Debt to Equity 14.54 14.4 13.47Total Equity / Total Assets
Coverage Ratio 0.1 1.15 3.34EBIT / Interest Expense
Gross Profit Margin 44.65% 52.50% 79%Gross Profit / Revenue * 100
Net Profit Margin -65.12% 12.69% 30%Net Profit / Revenue * 100
Return On Investment -4.43% 0.76% 1.24%Net Profit / Total Assets * 100
Return On Equity -887.99% 16.78% 18%Net Profit / Total Equity * 100
Advances to Deposit 56.46% 46.74% 45%Advances / Deposits * 100
Investment to Deposit 20.22% 41.63% 28%Investment / Deposits * 100
Cash Ratio 9.59% 9.23% 28%Cash / Current Liabilities * 100


UBL’s current ratio is increasing over the time. Higher the current ratio higher the ability to

meet the short-term obligations as they come due. The UBL’s current ratio is increased by

0.18% as compared to 2008. this in turn decreases the risk of insolvency. The change is

occurring due to increase in short term investment and decrease in short term borrowings.


This shows revenue generated per rupee investment in total assets. UBL’s assets turnover

ratio has shown a little decrease. This is because of increase in total assets with proportionate

increase in revenue. Banks have relatively low ATR capital, as they are selective in

advancing loans and generating smaller sales.


The analysis of total debt to assets ratio, there has been decrease of one percent as compared

to 2008 and 6% to 2007. In 2007 every rupee one of assets was being financed by rupees

0.098 or debt and in 2008 it is 0.94 while in 2009 it is reduced to 0.93 worth of debt per

Muhammad Ibrar 43
M.Com (Finance)
rupee of asset. Although the decrease is not large enough but it is a good sign for bank’s

creditors. The decrease may be attributed to the substantial decrease in borrowings from

financial institutions but the affect was weakened by an increase in bills payable and other



This ratio measures how the company is leveraging its debt against the capital employed by

its shareholders. Analysis of debt to equity ratio indicates that the current position for the

debt to equity is that for every one rupee in equity provided by the shareholders the bank has

Rs. 13.5 as a debt. This shows that the bank is heavily relying on debt financing. The reason

for huge difference stated in the table is because of losses occurred in 2007 and 2008.


This ratio shows the number of times a company can cover or meet its financial charges or

obligations. One of the most commonly used ratios is the interest coverage ratio that

measures the number of times the income is available to pay interest charges. The UBL

interest coverage ratio has shown significant improvement in these three years. The ratio is

increased from 0.10 to 3.34.


Gross profit margin is the difference between the revenue and cost of goods sold. Gross

profit is critical because it represents the amount of money remaining to pay operating

expanses financing cost and taxes. UBL’s gross profit margin per rupee has shown rising

Muhammad Ibrar 44
M.Com (Finance)
trend in last three years. There is an increase of 27% in 2009 as compared to 2008. this shows

efficiency of the bank to control the cost of sales.


This ratio shows the profit that is available from each rupee of the sale. After all expanses

have been paid. Net profit margin is also showing an increasing trend. UBL has improved net

profit margin in the current years. The net profit margin has reached to 30% as compared to

2008 in which it was only 12.69%. While in 2007 it was in negative figure. It shows a good

impact on the UBL’s Balance Sheet.


This ratio measures the profitability per rupee of investment in assets. UBL’s return on

investment has shown an improvement more than 100%. In 2009 the ratio is 1.24% while in

2008 it was 0.76% and in 2007 it was in –ive figures. Although the assets have increased but

the operational recovery of the bank is main cause of increasing this ratio.

This ratio shows the profit as a proportion of the book value of the common shareholders.
The return on equity is also shown a great deal of positive change. In 2009 the ratio is 45%
while in 2008 it was only 16% and in 2007it was in negative figures.

This ratio shows the companies advances employed per unit of deposit. This ratio of UBL

over the recent three years shows a decreasing trend. In 2007 it was 56% while in 2008 it was

46% and in 2009 it is 45%.


Muhammad Ibrar 45
M.Com (Finance)
This ratio shows the company’s investment employed per unit of deposit. This ratio increased

in 2008 as compared to 2007 but in 2009 it again decreased. It is because of industrial

development factors in the country by which lending has been increased and investment is

slightly decreased.



During my two months of internship period I have tried to fully commit myself in the
learning process. I kept critically observing the things that I could analyze and the result of
the exercise is presented as below.
A) Organizational:
 Existing organizational hierarchy hinders vertical communication and blocks flow of
information among the levels of management.
 The workload is not equally distributed.

 Coordination level among divisions/departments and employees are poor, particularly

speaking of between the top and lower levels of management.

 There is centralization of authority and branch managers are bound and restricted to
take initiative.
Muhammad Ibrar 46
M.Com (Finance)
 Due to overlapping nature of duties and jobs there exists chaos and confusion in

B) Departmental:
During my internship period in UBL, in various departments, I noticed following
departmental problems.
• Cash Department:
i. Not very frequently but there are instances of fake currency notes, being
identified. At times notes received from other branches were found to have certain
fake currency notes.
ii. Counting mistakes occur due to overcrowding particularly during the collection of
utility bills. Manual counting system also affects efficiency of the bank.

iii. Code of conduct of cashiers is found unsatisfactory.

iv. There is generally the lacking in observing and practicing bank’s relevant
procedures and SOP’s.

• Remittances Department:
i. Application of tests for authentication of TTs is not known to al concerned
individuals that reduces the efficiency and further the wrong application of tests
prevent payments and the delay could dissatisfy customers.
ii. Telegraphic messages require specific skills and training. The employees are partially
equipped of such knowledge.

iii. Preparation, execution and management of TTs and MTs and particularly DDs ask for
mastering applicable rules and regulations and most of the staff was found ignorant of

• Deposit Department:
i. Newly designed AOF has an inbuilt deficiency of restricted space and cannot
accommodate more than two names.

Muhammad Ibrar 47
M.Com (Finance)
ii. Identification of customer’s signature is very important particularly when cash is to
be withdrawn by him. Manual practices pose problems in those branches where
automation has not been done yet.

iii. In cases where the presence of customer himself is must, is sometime compromised
due to influences of\r fear of loss of customer.

• Clearing Department:
i. Wrong endorsement and stamping causes loss to the customers and extra efforts for
the bank to repeat the procedures.
ii. Reasons for the return of the cheques at times are not mentioned on the return memos.

iii. At times due to lack of training wrong stamps are applied on instruments.

• Credit Department:

i. Timelines in cash disbursement is very important which is compromised due to

lengthy processing and documentation requirements.
ii. Relationship Managers need to be fully equipped with the requisite knowledge and
skills as presently plain BA/B.Sc qualified individuals are performing jobs of MBAs.

iii. Lack of infrastructure for carrying out computerized financial analysis of borrower’s

iv. Large pool of potential borrowers cannot apply for loans due to lack of collaterals.
Heavy collateral requirements restrict credit business of the bank.

v. The credit proposal and other documents at times are not properly and sufficiently
prepared before taking approval.

vi. Filing and record maintenance of credit related documents are not done efficiently.

• Bills Department:
i. Bills are sent to other cities; therefore, extra care should be exercised in making
entries and stamp affixing.

Muhammad Ibrar 48
M.Com (Finance)
ii. Proper scrutiny at times is not carried out and it causes loss to the bank or increase
procedural timings.

iii. Employees at times mismanage their time and fail to forward bills promptly.

• Foreign Exchange Department:

i. Problems of bills and remittances departments equally apply to foreign exchange

department. There is overlapping of functions and complete separation of function
has not been achieved thus leading to a state of confusion and conflict among

ii. Employees of this department are lacking computer-operating skills.

iii. Knowledge and educational background of employees working in this department do

not match with the job they are doing.

iv. Most of the employees of this department lack the ability to handle the Letters of


SWOT is useful tool for providing a framework for analysis of an organization. SWOT
stands for Strengths, Weaknesses, Opportunities and Threats. It is a common approach to
make assessments in terms of internal and external environment of the organization, and to
formulate strategies analyzing its internal strengths and weaknesses, external opportunities
and threats, coming up is the SWOT analysis for the UBL.


• It is one of the largest private banks with a deposit base of Rs. 94883/- millions
showing constant growth over the period from 1999 till the day.

Muhammad Ibrar 49
M.Com (Finance)
• It has a well-knitted and adequately equipped branch networking system that
efficiently covers both the domestic and international markets.

• It is involved in both corporate and retail banking.

• The bank is actively emerging and is engaged in international trade and foreign
exchange transactions. Foreign trade volume showed an increase of 17% over the
previous year.

• Advances investment of the bank shows a constant growth pattern. The current year’s
growth rate is 32%.

• The bank is owned by parties of financial repute and credit worthiness like, SBP with
48.69% interest, Best Way group and Abu Dubai group with 25.50% of interest each.
Others are GOP, NBP Trustee Department, State Life Insurance Corporation etc.


• Due to risks such as political, economic and legal etc the bank has suffered losses the

main reason was that of piling up of large amount of unrecoverable loans and debts

which has adversely affected the image of the UBL.

• Accumulated losses pushed the bank to cut down its promotional activities in order to
reduce expenses for last few years.

• During the nationalization life span of the bank political lords used influence in bank
business and selection of employee at each level and thus adversely affected the
bank’s efficiency and effectiveness.

• Administrative expenses are 51% of the mark up revenue.

Muhammad Ibrar 50
M.Com (Finance)
• Promotions are carried out on annual basis ignoring the importance of capabilities and
performance outputs.


• Growing policies of the GOP on business and economic sectors provide UBL an

opportunity to efficiently meet with the business people requirements of instant cash

facilities e.g. the government intentions of developing housing and agriculture


• Government is taking very bold steps to promote IT in Pakistan UBL has an

opportunity to improve in IT stock exchange is very volatile and takes immediate
effect so in times of crises conservative investors turns to saving deposits.

• UBL is surrounded by many competitors it has an opportunity to aggressive

marketing to increase its business.

• Increase the product range to meet the broader range of customers’ needs.


• Threats are also external factors in the environment, which are not in the favor of
company, which can seriously hamper the company’s ability to serve its customers.
• Expansion of new commercial banks like ASKARI bank, UNION bank and etc.. And
their better performance may cause loss of market shares of UBL.
• According to World Bank report the Pakistan has become “over banked” economy
with cut throat competition for deposits in the industry the battle is on for the market
shares. The customers have emerged as the main Beneficiaries of the competition.
Now they are getting more personalized services and innovative product.
• All banks are facing a stiff competition to attract new customers. With privatization
program began in Pakistan in 1991, three of five NCBs and three DFIs were
privatized, and eleven new private banks were set up.
Muhammad Ibrar 51
M.Com (Finance)
• Along with the growth in size, the banks are now incorporating innovative
approaches to their traditional commercial banking operations, keeping in the view
the changing demand of the time. UBL face problem.
• The political influences affect the performance of bank very badly. Most of the loans
become bad dad debits due to political pressure
• No stable government in Pakistan, Government policies change with the change of
• The concept of evening and Saturday banking, telephonic and online banking, ATM’s
and credit cards are direct result of the intensive competition. But UBL is behind the
above-mentioned services.
• Freezing of foreign currency account by the government of Pakistan is also a fear for
the bank.


It is very important that an organization considers its environment before beginning the
marketing process. In fact, environmental analysis should be continuous and feed all aspects
of planning.

The organization's marketing environment is made up of:

1. The internal environment e.g. staff (or internal customers), office technology, wages and
finance, etc.

2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our
competitors, etc.

3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural
forces, and Technological forces. These are known as PEST factors.

Muhammad Ibrar 52
M.Com (Finance)

The political arena has a huge influence upon the regulation of businesses, and the spending
power of consumers and other businesses. You must consider issues such as:

1. How stable is the political environment?

2. Will government policy influence laws that regulate or tax your business?

3. What is the government's position on marketing ethics?

4. What is the government's policy on the economy?

5. Does the government have a view on culture and religion?

6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or


Economic Factors.

Marketers need to consider the state of a trading economy in the short and long-terms. This is
especially true when planning for international marketing. You need to look at:

1. Interest rates.

2. The level of inflation Employment level per capita.

Muhammad Ibrar 53
M.Com (Finance)
3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so


The social and cultural influences on business vary from country to country. It is very
important that such factors are considered. Factors include:

1. What is the dominant religion?

2. What are attitudes to foreign products and services?

3. Does language impact upon the diffusion of products onto markets?

4. How much time do consumers have for leisure?

5. What are the roles of men and women within society?

6. How long are the population living? Are the older generations wealthy?

7. Do the population have a strong/weak opinion on green issues?


Technology is vital for competitive advantage, and is a major driver of globalization.

Consider the following points:

1. Does technology allow for products and services to be made more cheaply and to a better
standard of quality?

2. Do the technologies offer consumers and businesses more innovative products and
services such as Internet banking, new generation mobile telephones, etc?

3. How is distribution changed by new technologies e.g. books via the Internet, flight tickets,
auctions, etc?

4. Does technology offer companies a new way to communicate with consumers e.g.
banners, Customer Relationship Management (CRM), etc

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This will help the bank to take long-term perspective for its marketing activities, with
consideration on strategic approach of the bank. There are various steps involved in the given
implementation plan, which will come in order, according to their importance and subjection
on one another. Moreover, to bring order and efficiency to the difficult task of
implementation plan. It has been broken down into the steps, which believed to be needed,
when developing a disciplined action/implementation plan for launching financial products.
Step 1: Business Review
As we early discussed that this implementation plan will focus on marketing activities of
UBL and as a part of the marketing background component, the business review is must. It
includes the marketing database not only of UBL but also of other banks. To develop
marketing database, we first need to understand the scope of banking followed by a
comprehensive situational analysis of the financial product, and market place, which is

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relevant to the target market and competition situation. This will be accomplished through
secondary research in Pakistan. UBL’s own record of financial products and very often-
primary research surveys of potential customers and focus group information. The business
review provides a qualitative and quantitative decision activities and a rational for all the
strategic marketing decisions with in the plan.
Step 2: Problems and Opportunities
The problems and opportunities step of UBL is a summary of the challenges that will emerge
from the marketing database. In this step the data collected from the business review is
shaped into meaningful summary points that form the basis of the implementation plan.
Step 3: Target Markets and Marketing
The target market and marketing objective both are inducted in one step due to their critical
link to one another.
Target Market: Once the deposits collection being developed as quantifiable
objective, the staff of marketing department at the Hub branches and Head Office of bank
must determine to whom they will be selling their new financial packages. In response to
which bank will raise deposits, making this determination is really defining a target market.
Which is a group of people with common characteristics. This part of implementation plan is
concerning on marketing efforts towards the portion of population wit similar banking needs
and saving habits.

Step 4: Plan Structure

To compete with other banks, UBL needs to set strategies for its new product by including
the postings strategy, it will help in image building of the financial package to be launched.
Posting: Once the bank has defined its potential market and has established
marketing objectives, it must need to develop posting of its financial product. Position is the
desired perception of the product within the market target of the bank for example, if the
product is launched. Its position should be done in such a way, that customer is fully aware
of its major characteristics the bank has stained to build the image of its products as highly
profitable package. This positioning strategy is supported by the strategic consideration on
various marketing mix tools e.g. advertisement, publicity etc,

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Step 5: Informational Goals:
All steps of this implementation plan are highly dependent, but step 5, 6 & 7 are much more.
Informational goals means to set the target the market awareness and attitudes package and
fulfill the marketing objective of the bank. Another purpose is to provide direction for what is
to be accomplished by each strategic tool in term of informational context.
Step 6: Strategic Marketing Mix:
This step is highly concerned with getting attention of the customers towards the service of
the UBL offering. Here we are concerned with a new package launched by the bank. Focus
will be on that financial product. This step of disciplined implementation plan provides some
strategic plans for marketing of the product. These strategic and tactical plans incorporate
marketing executed. When implemented, will allow the bank to meet it’s marketing
objectives and fulfill the overall marketing strategies and information and communication



Recommendations and suggestions are considered to be the most important part of an

internship report, without which no report is considered complete and meaningful. This part
of the report is based on the previous sections i.e. review and analysis. Moreover, for
bringing suggestions, discussions have been conducted with the staff of UBL officers, who
not only provided the basis for recommendations and suggestions but also pointed out some
areas, where the change for the development is utmost important. Realizing the importance
of this section, efforts have been made to give feasible recommendations, which are
categorized under the following headings.
During my internship at the UBL I find out week areas that require improvements for
long-term benefit of the organization. These suggestions and recommendation are as follows.

 The behavior with the customers should be improved.

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 There is a great need of proper training of employees. Because when ever they were
asked about the latest banking the answer was sorry we don’t know.
 Like the other reputed commercial banks UBL should recruited some officers
especially from the fresh MBA’s and M.Com students. Doing so, the more talented
persons would enter in the management and they will try to make the National Bank
compatible with the other banks.
 All the branches must be fully equipped.
 The behavior with the customer should be improved.
 Try to establish effective communication between top-level management and
 Also do marketing through internet
 Effective training and qualified, dutiful and vigilant inspection teams are inducted per
force in all the banks. .
 This branch is not doing many functions to open the L/C and to deal in export and
import facilities. So bank should hire export staff for such type of activities and start
them in the branch.


Personal learning is a moral and ethical obligation set by a person to move in a

mellow way to excel in present and future.
During the internship I realized following duties.

 Cohesiveness
 Ever Ready For Challenges
 Board Vision
 Learning From Cradle To Grave
 Always Create Opportunities
 Open Communication With The Boss
 appearance

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A team player can achieve more than an individual. Good coordination and
cooperation with peers and other staff members can impulse a person to perform better in
difficult situations. During my internship I noticed that the degree of cohesiveness among the
UBL employees is high that is why UBL is achieving its target quite efficiently.


If a person can handle problems and challenge adequately, he can grow especially in
Finance field where every thing is well estimated.

Think positively to avoid any kind of discrepancy and hurdle in your task. Positively
thinking and broad vision helps you to achieve some thing different and new.
Latest researches and journals can be very helpful in order to generate new ideas.
UBL offers many new courses to the employees to upgrade their knowledge.


“Don’t wait for opportunities always create opportunities”

“Time & Tide Waite for None”

If you are able to create opportunities, success is yours. Now the question is how?
The answer is very simple, by generating new and useful ideas for the organization.


To avoid any kind of misunderstanding with your boss, communicate freely with him.
During my internship I analyzed that;

“People don’t leave the organizations they leave their bosses”

So be friendly with your staff and boss and communicate freely to avoid
organizational switching.

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“Treat your self as a product”

Attractive appearance can be very useful to impress others. A professional should be dressed
up properly to influence others.


Web sites


News papers
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 Principals of Banking
 Marketing

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