UBL Finance

1
where you come first
Banking System
Banking services are extremely important for both economy

developed and developing economy such as Pakistan. Banking
services serve two primary purposes.
First, by supplying customers with the basic mediums-of-

exchange (cash, current accounts, and credit cards), banks play a key
role in the way goods and services are purchased. Without these
familiar methods of payment, goods could only be exchanged by
barter (trading one good for another), which is extremely time-
consuming and inefficient.
Second, by accepting money deposits from savers and then

lending the money to borrowers, banks encourage the flow of money
to productive use and investments. This in turn allows the economy to
grow. Without this flow, savings would sit idle in someone’s safe or
pocket, money would not be available to borrow, people would not be
able to purchase cars or houses, and businesses would not be able to
build the new factories the economy needs to produce more goods and
grow. Enabling the flow of money from savers to investors is called
financial intermediation, and it is extremely important for the growth of
economy.
Comprehensive Report on UBL

2
Benefits of banking for economy
The deposit and loan services provided by banks benefit an

economy in many ways.
First, Current account, because they act like cash, make it much
easier to buy goods and services and therefore help both consumers
and businesses, who would find it inconvenient to carry or send
through the mail huge amounts of cash.
Second, loans enable consumers to improve their standard of

living by borrowing money to purchase cars, houses, and other
expensive consumer goods that they otherwise could not afford.
Third, loans help businesses finance plant expansion and

production of new goods, and therefore increase employment and
economic growth.
Finally, since banks want loans repaid, banks choose borrowers

carefully and monitor performance of a company’s managers very
closely. This helps ensure that only the best projects get financed and
that companies are run efficiently. This creates a healthy, efficient
economy. In addition, since the owners (stockholders) of a company
receiving a loan want their company to be profitable and managed
efficiently, bankers act as surrogate monitors for stockholders who
cannot be present on a regular basis to watch the company’s
managers.

3
BANKING INDUSTRY IN PAKISTAN
After the emerging of Pakistan our entire Banking System

collapsed because Hindus who migrated to India owned most of the
banks in Pakistan. Pakistan received only 631 branches of scheduled
Banks out of 3496. Immediately after the birth of Pakistan the numbers
reduced to 231 branches due to shut down of banks in Pakistan by the
Hindu owners. Realizing the necessity of Banks, attention was soon
given to this sector in Pakistan.
In 1947, in Pakistan there is only two Muslim Banks, namely,

Habib Bank Limited, Australasia.State Bank of Pakistan was set up in
1st July 1948.In 1948 another banks was made by the Government to
fulfill the needs of consumer banking. In 1957 PICIC was established. In
1959-60 four banks were established namely, United Bank, Commerce
Bank, Standard Bank, And Eastern Mercantile Bank. In late 1960’s
some foreign banks started financial services. In 1971 local private
banks were nationalized.
Till the end of 1980s, Pakistan’s banking sector was heavily

regulated in most of the areas of activities. The regulated and
nationalized banking system created an industry structure where
competition was unknown to management of the banks. Forced by the
structural reforms agenda and the desire to strengthen its financial

4
system, Pakistan moved towards liberalization and financial sector
deregulation in 1990. It started with the privatisation of state-owned
commercial banks and induction of new ones from private sector to
establish a market-based banking system. The government seems to
be conscious about improving the efficiency of banking sector in
Pakistan. Few considerable efforts have been made in this regard
which include enhanced capital adequacy, strengthening asset quality,
improving management and increasing earnings.
Furthermore, interest rate deregulation, abolition of credit

controls and further developments in capital market have also led
towards a more competitive banking environment.
The market for banks is diverse in Pakistan comprising nationalized

commercial banks
(NCBs), Private banks and foreign banks. In 1993, there were 33

commercial banks in Pakistan 14 being local and 19 foreign. By the
end of 2001, the number of banks has increased to 43, 24 being local
and 19 as foreign2. The deregulated and increasingly competitive
environment poses a challenge in terms of efficiency, as the most
efficient banks would survive while the less efficient will be driven out
of the market
During early 1990’s government encouraged private sector to

enter in the banking sector. The Government including Muslim
Commercial Bank (MCB), Allied Bank Limited (ABL), United Bank
Limited (UBL), National Bank of Pakistan (NBP) and Habib Bank Limited
(HBL) has privatized all nationalized commercial banks.

5
History Of United Bank Limited (UBL)
The history of UBL can be divided into four main Phases
1. Formulation
2. Nationalization
3. Privatization
4. Today
1.Formulation
In June 1957, Mr. Agha Hassan Abidi decided to open a Bank

different from others, to provide modern facilities to trade and industry
and to promote thrift and habit of saving amount common thereby
stimulating the economy as a whole. Necessary formalities completed
for obtaining registration certificate from State Bank of Pakistan to
perform business activities. After passing through all these formalities
on 7th November, 1959 United Bank Ltd came into existence as a
Schedule bank.
The Head office of the Bank was established in the New Jubilee
Insurance House, 1.1 Chandrigar Road Karachi. It was registered as a
joint stock company. The bank was incorporated with an Authorized
Capital of Rs 20,000,000 and issued and subscribed and paid up capital
of RS 10,00,000. Saigol family owned it and Agha Hassan Abedi was its
first managing Director. It had posted a profit of 0.7 million in its first
year of operation with just eight branches at Karachi.

6
2. Nationalization
As a policy of nationalization fourteen commercial banks was

merged into five big banks. So consequently on 21st December 1974
Commerce Bank and Union bank was merged with the UBL.
Mr.Mushtaq Ahmed khan Yousafi took over the charge of UBL. Now,
there are six directors, a secretary and a president.
3. Privatization Of UBL
UBL was the largest privatisation attempted by the government

of Pakistan, launched in June 2001, with 21 interested parties. It was
impacted by the adverse developments of the September 11, 2001
and was finally concluded in October 2002, which left stage only three
bidders. The consortium comprising Bestway Group (BG), out of the UK
and Abu Dhabi Group (ADG) from the UAE were finally the winners at a
record price.
Sale proceed was Rs 12350 million. This signaled the strong

confidence reposed by these investor groups, in the improved
governance of the country, the economic potential, the banking
opportunity and the existing management of the bank.

7
4. UBL today
Today they bank has take progressive step.
Change the loge
The United Bank Limited (UBL) management has launched its

new corporate identity and changed its 44 year-old-logo following its
privatization.
UBL online
Now access your account from 71 cities across Pakistan. Our

network is growing at an amazing pace and now you can avail services
like cash withdrawal, payments, deposit, stop payment, acquisition of
account statement and many more from more than 350 online
branches.
Business Partner
9-5 Non-Stop Banking

Banking at your own convenience has been made possible. UBL now
offers 9-5 Non-Stop Banking service at more than 450 branches across
Pakistan.
Countrywide Instant Cheque Clearance

Submit a cheque in Karachi and get it cleared in Peshawar within

8
minutes. With online banking services, you can get your cheque
cleared instantly, without any hassle.
Instant funds transfer

Funds transfer was never this easy. Make payments or receive payments within minutes
using our online facility. With the introduction of Internet Banking now funds transfer is
even made easier and is just a click away.
Click n remit
This is one of the easiest ways to remit money from USA to

Pakistan
Money Direct
This remittance facility has been started to facilitate

transfer of money from UK to Pakistan.
Consumer Financing
You as an individual can gain and benefit the most through UBL
Consumer Banking. In UBL you get friendly, efficient and attentive
personalized banking services - a unique banking relationship
experienced by each UBL client. You can utilize the following
services.
• UBL Drive
• UBL Address

9
• Cash Line
• Personal Loan (Coming Soon)
• Credit Card (Coming soon)
Over view of UBL

UBL has assets of over Rs. 190 billion, Shareholder's Equity of
over Rs. 12 billion and a solid track record of 43 years - in addition
to the convenience of over 1000 branches serving you throughout
the country and also at several overseas locations
 Date Established
November 7, 1959
 Chairman
His Highness Shaikh Nahayan Mabarak Al Nahayan
 Deputy Chairman
Sir Mohammed Anwar Pervez OBE
 President & CEO

Mr. Atif Bukahri
 Deputy CEO
Mr. M.A.Mannan
 Branches
1111: 1096 Domestic, 15 Overseas Branches

10
 Joint Venture with NBP
United National Bank Limited, U.K
 Representative Offices
Tehran and Cairo
 Subsidiary
United Bank A.G. Zurich, Switzerland
 Associated Company
Oman United Exchange Company, Muscat
 Offshore Banking Unit

Export Processing Zone, EPZ Branch, Karachi, Pakistan
 Employees
8,998 plus more than 500 contractual staff
 Head Office
State Life Insurance Corp. Building #1,
I.I. Chundrigar Road, Karachi, Pakistan
P.O. Box No.: 4306
Phone: (92-21) 111-825-111
Gram: "UNITED"
Fax: (92-21) 2413492
Branches by Region
Region Branches
Karachi 114
Hyderabad 133
Multan 170
Lahore 90
Faisalabad 165
Quetta 45
Peshawar 167
Islamabad 161
Azad Kashmir 81
1126
Branches by specific functions
Function Number of branches

11
Money Gram Branches 93

Uni bank branches 165
Hub Branches 87
Rupee Traveler cheque Branches (RTC) 143

12
BOARD OF DIRECTORS
Chairman
His Highness Shaikh Nahayan Mabarak Al Nahayan
Deputy Chairman
Sir Mohammed Anwar Pervez OBE
President & CEO
Mr. Amar Zafar Khan
1. Director
Mr. Omar Ziad Jaafar Al Askari
2. Director
Mr. Zameer Mohammed Choudrey
3. Director
Mr. Ahmad Waqar
4. Director
Mr. Javed Sadiq Malik
5. Director
Mr. M. Tahsin Khan Iqbal
6. Director
Mr. Jeeva Shahid Haroun
Barrister-at-law, Chief Legal Counsel & In-charge Company Secretariat

13
SENIOR MANAGEMENT
Mr.Atif Bukhari
President and C.E.O
Mr.M.A. Mannan
Deputy C.E.O
Mr. Nauman Hussain

Director Operations & Utilities
Mrs. Rukhsana Asghar

Global Head Human Resources
Mr. Aameer Karachiwalla

Chief Financial Officer / HCA
Mr. Muhammad Ejazuddin

Audit Chief
Mr. Mansoor M. Khan

Head Corporate Banking Group
Mr.Ali Sameer
Chief Special Assets Management
Risha Mohyeddin
Global Head, Treasury & Capital Markets
Tariq Mohar
Global Head, Establishment & Branch Operation

14
Brief profile of management
Sir Mohammed Anwar Pervez, OBE, HPk
Deputy Chairman
Sir Mohammed Anwar Pervez, OBE, HPk first hit the headlines in
1992 when he became the proud recipient of the order of the British
Empire. He was also awarded a Knights Bachelor in the Queen's
Birthday Honours list for services to business and the world of charity
in the UK and internationally. The president of Pakistan conferred the
highest civil award ‘Hilal-e-Pakistan’ on him in March 2000.
Mr.M.A. Mannan
Deputy C.E.O
UBL has always adopted the policy to induct qualified people
from different source available from home or abroad. Mr.M.A. Mannan
was inducted by UBL from Citibank New York as the Dy. Chief
Executive officer UBL.
An MBA from IBA Karachi. Mannan started his career from

Citibank Pakistan in 1991 where for the first nine years he worked in
sales, distribution and marketing launching most of Citibank’s new
credit and depositor products during the nineties. He rose to become
the Director of Marketing, Sales and Distribution at Citibank Consumer
bank. He was then transfer to the U.S.A the most matured and
competitive consumer market in the world and was promoted to Senior
Vice President, Cross Self Division covering a comprehensive array of
customers and products.

15
With his reputatation as a great team- builder and achiever,

UBL’s management firmly believes that Mannan will prove to a great
institutional and national asset.
MS. Rukhsana Asghar

Global Head Human Resources
Ms. Rukhsana Asghar holds a BA (Hons) Degree in International

Relation * a Bachelor of Law Degree from University of Karachi. She
further enriched herself professionally by attending many senior level
training courses seminars & conferences no Leadership, Strategic
Management, Career Counseling, Marketing of Financial Services &
Human Resource Development in the U.S.A, Europe, Middle East & the
Far East.
Till recently Director HR Citibank Pakistan, she was instrumental
in developing the talent base for Citibank, which led the institution to
emerge as a major player on the financial scene.
She served as a Vice President HR Citibank, Assistant manager
Personnel at Lever Brothers Pakistan Ltd.
Rated amongst the few HR specialists in the country the feather
in the cap is Rukhsana’s selection as one of the twelve members out of
101 countries to work on a global initiative relating to the paradigm
shift in the role of human resources. The result were applied and
implemented globally.

16
Mr. Nauman Hussain

Director Operations & Utilities
Mr. Nauman Hussain did his Master in Economics from the Punjab
University Lahore.
He possesses 24 years of International Banking (Retail &
Corporate) experience in the Middle East, Asia and the Far East. Prior
to joining UBL he served as Vice President & Head of Operations ar
Mashreqbank UAE, Senior Director & Chief Administrative Officer,
American Express Bank Ltd Karachi & Lahore included Assistant Vice
President& Manager Operation, Assistant Treasurer & Financial
Controller, Head Country Treasury/ Correspondent banking & relation
Manger.

17
Organizational Structure
Provisional Headquarters
Province
Punjab Lahore
Sindh Karachi
N.W.F.P Peshawar
Baloucihstan Quetta
Head Office
Provisional Head Quarters
Zonal office
Hub branches
Branches

18
Structure Management
President and Chairman of Board of Director
Executive vice President
General manager of
Deptt 1 Deptt 2 Deptt 3 Deptt 4 Deptt5
Zonal incharge
Area Manager
Branch manager

19
United bank limited

DOMESTIC NETWORK
AS ON DECEMBER 31 2002
Sr no HUB Name Region Name No. of

Branches
Corporate Bkng
1 Gulberg market Lahore 1
2 Corporate Branch Karachi 1
Total 2
1 Napier Road Karachi Karachi 17

2 SITE Karachi 9
3 PECHS Karachi 16
UBL Building North
4 Naziamabad Karachi 15
5 City Branch Karachi 14
6 Airport Karachi 18
7 Clifton Karachi 14
Total Karachi 103
Farid Chamber Karachi

1 (S.A.M.) 1
SAM Branch Lahore
2 (S.A.M.) 1
Total (S.A.M.) 2
1 New Town Mirpur Khas Hyderabd 19
2 Masjid Road Nawab Shah 13
Raxa Shah Kabir Road
3 Larkana 14
4 Minara Road, Sukkur 18
5 Naushero Feroze 9

20
Civic Centre Branch
6 Hyderabad 30
7 Lashi Gate Shikarpur 14
Total Hyderabd 117
Lahore Region REGION Branches

1 Bank Square Lahore Lahore 20
2 Depalpur Road ,Okara 12
3 S.D Vault Lahore 14
4 Model Town Lahore 18
5 Liberty Market Lahore 16
Total Lahore 80
1 Mujahid Road, Sialkot Sialkot 21

2 Hafizabad 8
Chamber of Commerce Building
3 Gujranwala 20
4 Narowal 9
5 Cirular Road Wazirabad 12
Total Sialkot 70
Faisalabad
1 Nankana Sahib Faisalabad 15
2 Jauharabad 9
3 people's Colony Faisalbad 14
4 Aziz Bhatti Road, Sheikhupura 11
5 Ballokhel, Mianwali 13
6 Toba Tek Singh 10
7 Ghalla Mandi Samundari 15
8 Bank Square Faisalbad 18
9 Main Bazar Balwal City 8
10 Railway Road Sargodha 24
11 Distt. Courts Jhang 14
total Faisalabad 151

21
Islamabad Rgion
1 Chakwal. Main Branch Islamabad 17
2 Gujar khan 11
3 Cantt Branch, Rawalpindi 17
4 Wah Cantt 17
5 Mangla Road Dina 8
6 Civil Lines jhelum 11
7 Kallar Saidan 15
8 Kotla 8
9 Mandi Bahauddin 7
10 Kharian City 12
11 Jinnah Avenue,Islamabad 14
12 G.T Road Gujrat 11
total Islamabad 148
1 Hassan Agahi Multan Multan 14

2 Multan Cantt 10
3 Akber Bazar Kahnewal 18
4 Azmat Road Dera Ghazi Khan 11
5 Fari Gate Bahawalpur 14
6 Vehari 13
7 Grain Market Khanpur 11
8 Imam Bare Road, Burewala 9
9 Main Bazar Branch , Muzaffar Garh 17
10 Shahi Road Rahim Yar Khan 12
11 High Stree Sahiwal 13
12 Main Bazar Chishtian 9
total Multan 151

22
Peshawar Region Region Branches

1 Cantt Branch Peshawar Peshawar 23
2 Cantt Branch Nowshera 14
3 Hangy Road Kohat 13
4 Bhatkehla 8
5 Bank Square Mingora 14
6 Cantt Branch Mardan 13
7 Parady Gate Bannu 6
8 Swabi 9
9 Main Bazar Branch Haripur 12
10 Timergara 11
11 Circular Road,D.I Khan 8
12 Hangu 9
13 Mansehra 8
14 UBL Building Lambi Dheri 8
Total Peshawar 156
1 UBL Complex Branch Quetta Quetta 13

2 Turbat 12
3 Virtual 17
Total Quetta 42
1 Dadyal Azad Kashmir 18

2 Kotli 14
3 Bhamber 8
4 Rahiyal 10
5 Commecial Centre Mirpur 15
6 Main Bazar Chattar 4
7 Rawlakot 10
total Azad Kashmir 79
Total Domestic Branches 1101
Total Hub 87

23
United bank limited

OVERSEAS NETWORK
AS ON DECEMBER 31 2002
No of
Sr. No HUB Name Region Branches
United Arab Emirate 8
Bahrain 3
Yeman 2
Qatar 1
United States of America 1
Export Processing Zone, Karachi 1
Total Branches 16

24

25
OVERSEAS NETWORK
COUNTRIES
Name Of Country
Branches U.S.A
"" Qatar
"" U.A.E
"" Bahrain
"" Republic of Yeman
"' Zurich
representative offices Iran
"" Egypt
Associated companies Oman
BRANCHES IN USA UK AND OTHER REPRESENTAIVE & ASSOCIATED

OFFIECES
New York
New York
Address:
30 Wall Street, 10th Floor
New York, NY 10005
United States of America
United Kingdom UK
United National Bank
Branches:
LONDON
BIRMINGHAM
BRADFORD
GLASGOW
MANCHESTER
Representative offices
1 Dokki, Cairo, Egypt
2 Tehran, Iran
Associated Companies
1 Oman United Exchange Co. LLC,
Sultanate of Oman
Branch Name : Ruwl
2 Oman United Exchange Co. LLC,
Sultanate of Oman
Branch Name : Salalah
NAME OF OVERSEASE COUNTRY WITH NAME OF BRANCH

26
serial
Name of country number Branch name
Qatar 1 Doha Branch
U.A.E
1 Zayed Road Branch, Abu Dhabi
2 Muroor Branch , Abu Dhabi
3 Alain Branch, Alain
4 Deira Branch, Dubai
5 Bur Dubai Branch
6 Sharjah Branch
7 Shaikh Hamdan Road Branch Abu Dhabi
8 Dawar Al Mussala Branch
Total 8 Bannches
Bahrain
1 Babal Bahrain
2 Manama
3 Muharraq
Zurich
1 United Bank AG Zurich, Switzerland
address:
Feldeggstrasse 55 , P.O Box 1176, 8034 Zurich,
Switzerland
Republic of Yemen
1 Sana'a
P.O.Box No. 1295, Sana'a
2 Hodeidah
P.O.Box No.3927, Hodeidah
Off Shore banking unit Off Shore Banking Unit, EPZ Branch
Karachi Export Processing Zone
Landhi Industrial Area Karachi.
Branch Manager
Malik Mumtaz Awan

27
Functions
In modern time commercial bank play a very important role and
their functions are manifold. Primary functions of the banks are to take
deposit and lending. They take deposits from different persons and
lend to others. Beside this they undertake agency services and general
utility functions.
Some of the important functions are listed below.
1. Transfer money from one place to another.

2. Accepting bills of exchange on behalf of customers.
3. Purchasing shares for the customers.
4. Collecting cheques and bill of exchange for its customers.
5. Undertaking foreign exchange business
6. Acting and executor, trustees or attorneys for the customers.
7. Providing safe custody and facilities to keep jewellery,
documents or securities.
8. Furnishing trade information and tendering advice to customers
9. Issuing of Travellers cheques and letters of credit to give credit
facilities to travelers.
10. Collecting interests due, dividend pensions and other sums due
to customers.

28
Departments of UBL
The following are the main department of UBL:
1. Deposit Department
2. Lending Department
3. Clearing Department
4. Cash Department
5. Remittance Department
6. Account Department
7. Bills Collection Department
8. Internal Audit Department (only in HUB Branches)
Types of Banking
UBL perform almost all types of banking.
1. Consumer Banking
2. Commercial Banking
3. Corporate Banking
4. Investment Banking
5. Relationship Banking
6. Treasury

29
Products and Services

UBL offer wide range of products and services to all types of
customers such as individual/ Consumer, Commercial ,Corporate etc.
Following are some of important products and services that UBL
now offers to its Customers.
Deposit
Deposit are called the life blood of Banks. To generate more
deposit the UBL has offered the following attractive deposit Schemes.
1. Current Account
2. PLS Saving
3. PLS term Deposit (TDR)
4. Notice Deposit
5. Unisaver (daily Profit)
6. Unizar (foreign Currency Deposit)
Lending
1. Cash Credit
2. overdratt
3. Loans (both short Term and long Term)
4. Agricultural Loans
5. Commercial Loan
6. Corporate Financing
7. Import Export Financing
Remittances
1. Tez Raftar
2. Money Gram
3. Click n Remit (sending money from USA)
4. UBL Money Direct (Sending money from UK)

30
Rupee Traveller Cheque
1. UBL Humrah Rupee Traveller Cheque
Lockers Facilities
Utility Bills Collection
TV/VCR Dish fee Collection
Hajj and Umrah Services
Uni remote
(All the above products and facilities will be analyze in the next
Sections)
Services of UBL
After the privatization of UBL, the bank has taken progressive

steps and introduces many new products and services for its valuable
customers. The following are some of the important services:
1. Cheque Encashment Facility

2. UniCash
3. Lockers Facility
4. Hajj and Umrah Services
5. Uni Remote
6. Utility Bills Collection
7. Dish TV fee collection

31
1.Cheque Encashment Facility
UBL has now provided facility to its customer to encash cheque

at any designated branch in addition to the branch where the customer
has maintained the account. For example your account is in the UBL
Aziz Bhatti Road branch Sheikhupura and you visit Karachi. In Karachi
you need money and you have not possess traveler cheque but you
possess Cheque book issued by UBL branch Sheikhupura.
Features
this facility is available for UBL valued customers

maintaining their Rupee PLS Saving or Rupee Current
accounts at any of the designated branch of UBL .
 personal UBL account cheques, whether favouring

yourself or a third party can be encashed at any of
the designated branch of UBL.
 the maximum amount per cheque can be Rs.

25,000 (at present)
 This facility is FREE OF COST if the balance in the

customer's Rupee PLS Saving or Rupee Current
account stays constantly at Rs. 100,000 or above
and the cheque is encashed by the customer
personally. In other cases the following charges will
be applicable;

32
i. Rs 50 for a cheque presented for payment in
different branch of the same city, where the customer holds
his/her account
ii. Rs 150 for a cheque presented for payment in a
branch of a different city.
2.UniCash
Like other banks UBL has also ATM card which has given the
name of UNICASH CARD. Now the customer can withdraw money from
any ATM machine installed by UBL at different cash point.
You can avail the following self-service banking facilities
 Balance Inquiry
 Mini Statement
 Cash Withdrawal
Features
1.Personal Identification Number (PIN) ensures that only you can
use your ATM Card.
2.The PIN protects you against misuse in case your card is lost.
3.You can change your PIN anytime you want.
4.You can specify flexible weekly withdrawal limits.
5.You can withdraw your weekly limit in one go, or in multiple
installments.

33
You can use UNICASH Cards at UBL Cash Point located in the
following cities
City Cashpoints
Islamabad 5
Rawalpindi 2
Karachi 1
UAE 8
Bahrain 3
Doha, Qatar 1
ATM Branches
For instant cash at any time of the day or night, without

the hassle of queues and tokens, use one UBL ATMs in Pakistan
or Overseas.
In the UAE UBL have connected all its Automatic Teller

Machines (ATMs) to the UAE ATM Switch, giving access to over
550 third party ATMs throughout the region to all our customers.
UBL has signed with 1 Link ATM Switch Network, which

comprises of 11 leading banks of the country. The signing
ceremony was held on April 25, 2003 at ABN AMRO’s Head Office
in Karachi. UBL’s customers can use 165 ATMs on the Switch.
The bank is also in the process of installing its own ATMs to
facilitate its valuable customers.
Following is the detail of existing ATM locations:

34
 UBL Civic Centre Branch: G/6, Islamabad

 UBL School Road Branch: F/6, Islamabad
Islamabad  UBL Jinnah Avenue Branch: Islamabad
 UBL Markaz Branch: F/7, Islamabad
 UBL Markaz Branch: F/8, Islamabad
 UBL Cantt Branch: Rawalpindi
Rawalpindi
 UBL Chandni Chowk Branch: Rawalpindi
Karachi  UBL Head Office, Karachi
 UBL Bab-ul-Bahrain Branch
Bahrain  UBL Manama Branch
 UBL Muharraq Branch
Doha,
 UBL Doha Branch
Qatar
 UBL Sharjah Branch
 UBL Abu Dhabi Branch
 UBL Dubai Branch
 UBL Al Ain Branch, Abu Dhabi
UAE
 UBL Airport Road Branch, Abu Dhabi
 UBL Shiekh Hamdan Road, Abu Dhabi
 UBL Deira Branch, Dubai
 UBL Dawar Al Musallah Branch, Dubai
Lockers Facility
UBL also provide its valuable customer lockers facility for
keeping their valuables in safe custody at very reasonable rate.

35
Hajj and Umrah Service
UBL is also performing hajj and Umrah services. Every year a
special counter is opened to facilitate hajjis. In this counter hajj form is
filled and other information relating to Hajj is provided.
Hajj schemes
The following hajj schemes has been started by Government this
year (2003)
Regular Hajj Scheme.
According to Policy for Hajj 1424 Hijri (2004 A.D.) Sponsorship Scheme
has been merged into the Regular Scheme. Intending Hajjis in this
Scheme can opt for government accommodation or for private
accommodation. All the pilgrims under Regular Scheme will deposit full
amount of Hajj dues in Pak Rupees along with the Hajj Applications
Forms. This year 120,000 pilgrims will be allowed to perform Hajj under
Regular Hajj Scheme.
Open Hajj Scheme
This year the Ministry of Religious Affairs has decided to provide Hajj
passport to those intending to perform Hajj under Open Hajj scheme
also. There will be no need of an International Passport. 10,000
pilgrims will be allowed for Hajj under Open Hajj Scheme this year.
Balloting
In case the number of applicants exceeds the prescribed quota,
balloting will be held to determine successful applicant.
ELIGIBILITY
Only Pakistani NATIONALS are eligible to apply for Hajj.
THE FOLLOWING ARE NOT ELIGIBLE
Ladies in an advanced stage of pregnancy.
Medically unfit & handicapped people without a helper or assistant

36
Those infected by contagious diseases
Ladies without Mehram (other than Ahle Tashee)
6.Utility bills collection

Features
• UBL has over 1000 branches collecting electricity, gas, telephone

and other utility bills during business hours.
• Special bills collection counter in every bank
• Separate booths for utility bill collection are available at all major
cities for the convenience of the public.
• Branches in all major cities have electronic bill collection
machines.
• For your convenience, UBL accepts cheques for payment of
utility bills.
• Drop box facility
7.Dish/T.V Fee collection
UBL is one of the main collecting agents of Pakistan Television

(PTV) collection against issuance of licenses/renewal of licenses at its
authorized branches all over the country.
Uni-Remote

37
UBL is the pioneer of use of computer network system in the
country with the help of which almost all the branches are
interconnected with each other. This system is known as Unibank.
UniRemote System is designed to perform transactions

between any two UBL Branches over WAN (Wide Area network)
with the assurance that the information will be secured by taking
security measures. UniRemote is not in direct access of the
customer but it is the system between branches where they can
make online transactions with each other on behalf of UBL
customer. All UBL online branches on WAN will handle the
UniRemote Operations. Customers can make transaction from
any of the selected online branch in any city.
Today we have 73 online Hubs running UniRemote all over
the country.
. Transactions / facilities presently permitted in UniRemote

are as follows:
• Cash Deposit
• Cheque Encashment
• Stop Payment
• Account Statement
• Funds Transfer (Account to account / IBCA)
Following are the main reports to be generated from the

UniRemote system.
1. Non UniRemote Customer list

2. Inward Transactions

38
3. Outward transactions
4. Inward stop payment
5. Outward stop Payment
6. UniRemote Customer Advices
Activities of the bank
1.Receiving Deposit
Deposit department has the responsibility to create deposit as
much as possible. The officer of that department has given the target
to take deposit, and then the officers induce the person to open the
account with the bank.
Deposit is also important because more the deposit of the bank
the more the bank can lend and make money in the form of mark up.
All the deposit which UBL maintain can be covered under the
following types of deposit. The main difference is the period and
customer convenience to withdraw the deposit. General role is that
the greater the period of deposit more the return and greater the
customent convenience to withdraw deposit lesser the return.
Because of this golden rule bank pay no interest on Current account,
customer can withdraw money at any time.
So the following are the main types of Deposits
Current Deposits:
Current deposit account can be opened with the
minimum amount of Rs.5000. In this type of account the client is
allowed to deposits or withdraw money as and when hi likes. Usually
the businessmen open this type of account. No interest is allowed by

39
the bank and no service charger is deducted by the bank on current
deposits account.
profit and loss Account
Under such types of accounts the bank allows no
interest to the customers. Profit of loss is declare every by the
executive Board of the Bank.
Profit and loss account has two types

1. Profit and loss Sharing Tern Deposit Account
2. Profit and loss Sharing Saving Account
1. Profit and loss sharing Term Deposit Account
PLS Term Deposit is that type of deposit that is
maintained for a fixed period of time. Minimum period is 3 months and
maximum is 5 years.
The salient features of PLS sharing term Deposits are given as
under:
 The PLS Tem Deposit receipt can be made in a sum or Rs 1000 or

its multiple e.g. RS 2000 Rs 3000 etc.
 If a customer maintain an account with bank can convert it into

PLS term deposit account without any charge
 The deposits for longer period will earn little more profit than
these for shorter period deposits.
Profit and loss Sharing Saving Account
PLS Saving Account can be opened with the minimum
amount of RS 200. Minimum amount of Rs 10000 must be
maintains in order to earn profit. No profit will be allowed below Rs
10000 and bank will charge Rs 200 service charges below Rs.
10000.
Fixed Deposits

40
In this type of account a certain amount is deposited for a certain
period such as six month. Two years or longer. It is also called time
liabilities of a banker. They are called so because the money is
payable on expiry of a fixed period of time only. The terms and
condition of this deposit are regulated by central bank for this
purpose.
Fixed deposits are two types
1. Notice Deposit Receipt
2. Term Deposit Receipt
Foreign Currency Account
The UBL also maintain Foreign Currency account. But it

can only opened in specific currency such as Dollar, pound
sterling etc. In case of dollar the foreign currency account can
be opened with 1000 US$ and in case of Pound Sterling 750
pounds.
2. lending
The bank is an intermediate party between the borrower and the
lender. It borrows from one party and lends to another. The difference
between the rate of interest it borrows and lends is called the spread,
and is the income of the bank. Lending is the main source of income.
Bank don’t lends to every one who applies for loan but before
giving advances the bank follow certain principles which are as follows:

41
Principles of Lending
The following are the principles, which the bank follows while
advancing loans.
1. Safety
2. Liquidity
3. Dispersal
4. Remuneration
5. Suitability
1.Safety
Safety of the amount is very compulsory because the real owner
of the deposit is not the bank all these deposits belongs to account
holders of the bank. The bank shall be very careful to extend the loans
in the safe hand and without risk of loss.
Following points must be kept in mind to ensure” Safety of the
Amount”.
 Character
 Capacity
 Capital
 Cash flow
 Competition
 Collateral
 Country Risk
 Currency Risk
Character

42
The borrower character will indicate the attitude to
repay the amount. His honesty and integrity is important
Capacity
This refers to the managerial ability, knowledge and
technical skill. He may lack in the financial resources but he must
possess experience and deep insight ability in management of the
business
Capital
First the bank must evaluate or calculate the
investment made by the owner in his business then the bank should
disbursed the loan
Cash flow
This refers to source of income of borrower and strength
of expenses.
Competition refers to the feasibility of the project in the
prevailing competitive market
Collateral
This refers to the amount or strength of security, which
the borrower offers to the bank to get loan.
Country risk and Currency risk
Bank should observe the economical and political situation
of country it must also look neighboring country interference.
Currency risk is directly connected with county risk. If the political and
economical condition are suitable then exchange rate favorable
2.Liquidity
It refers to the ability of the borrower to repay the loan. It
is the evaluation to repay the amount in lump sum at short notice.
3.Dispersal
Spreading of the total quantity of credit to all the sectors of
the economy, which include industry, commerce, farming, agriculture,
traders, housing etc. The main advantage of spreading is that if the

43
bank loan only to a specific sector then there is greater chances to
become loan bad debts in case of financial crisis in this sector.
4. Remuneration
This refer to the amount recovered by the banker in the
form of the interest. This is the earning source by which the bank is
going to meet its expenses.
 Interest payable to the depositor

 Salaries and fringe benefits payable to staff
 Overhead expenses and depreciation
 Provision of reserves for unforeseen expenditure
 Payment of dividend to the shareholders
5.Suitability
Advances must be made to selective suitable borrowers keeping
in mind national development plans workout by the central
government. It must also conform with the national credit policy of the
central bank.
UBL advances the following types of advances:
1. Running Finance (Overdraft)
2. Cash Finance (Cash Credit)
3. Demand Finance (Loan)
4. Discounting the bills of Exchange
1.Running Finance (overdraft)

Running finance (old name overdraft) are advances, which
are generally given to meet temporary requirement of the
customers. The following are the characteristics of this type of
finance:
 Temporary form of accommodation

44
 Allow the customers to withdraw over and above their credit

balance.
 Interest is charged on outstanding balance only.

Types of Running finance
1. Secured
2. Unsecured
1.Secured
Under this type of overdraft the bank allow customers to
withdraw more than their deposit after giving security
2.Unsecured
Under this type bank allow this facility against personal
security of the customer.
2.Cash finance (Cash Credit)
Under this type of advance limit is established which can be avail
at one time or as and when required. This is the most common form of
borrowing against pledge or hypothecation. Borrower prefer this facility
because interest is charged on the amount utilized and not on the total
limit sanctioned.
For example limit sanctioned 5000,000,000 but avail only
3000,000,000 so interest will be charged on 3000,000,000 only and
not on the total limit.
Sometimes bank impose restriction to pay markup or service
charges on at least one half or one fourth of limit.
Security accepted for cash credit may be:
 Local manufactured goods

 Rice and paddy
 Pledge
 Trust receipt

45
 Other commodities
3.Demand Finance (Loan)
“When the borrower borrow a fix amount repayable in lump sum
or periodically installment after expiry of a fixed period it is called
loan.”
Total amount is credited or put to the disposal of customer and
interest is charged on the full amount.
There are two types of demand finance
1. Short term (less than one year)
2. Long term (more than one year)
UBL provides the following types of loans:
Demand finance (packing credit)
This facility is provided to exporter to facilitate export
under the direction of SBP. This facility is granted to exporter at
concessional rate for the export of surgical instruments carpet etc
Industrial loan
Given to industrial sector for purchase of machinery and
other capital nature goods.
Demand finance for student (Qarzae Hasna)
Qarzae Hasna scheme allowed to student and teachers to
obtain loan without interest or markup with recommendation of MPA or
MNA.
Demand finance Staff
This facility is given to staff for the following purposes:
 House building loan against mortgage

 Loan for purchase of vehicle
 Loan against three months salary

46
3. bills collection
This activity is conducted in the Bills Collection

Department. Bills collection Department collects both types of
bills for collection i.e. inward bills for collection and outward bills
for collection.
4 Remittances
UBL provide both types of remittances i.e remittances

within Pakistan and Home remittance i.e remittances from
abroad.
To Remit money UBL has the following Product
Within Pakistan
 Demand Draft
 Tele Graphic Transfer
 Mail Transfer
From Abroad
 Tez Raftar
 Money Gram
 Click n Remit
 Money Direct

47
Activity 5 Operation of Clearing Department

Clearing house is a place where representative of all the bank of the
city get together and settle the receipt and payment of cheques drawn
on each other”.
Types of clearing
There are two types of clearing
1. Inward Clearing
2. Outward Clearing
1.Inward Clearing
“All these cheques of different branches drawn on one
branch of any bank when received through the channel of clearing
house it is called inward clearing”.
2.Outward Clearing
“ All those cheques which has been drawn on other banks
and have been deposited for collection through the channel of clearing
house is called outward clearing”.
Types of cheques collected by the clearing Department.
1. Transfer cheques
2. Transfer Delivery cheques
3. Clearing Cheques
When the payee or endorsee (who deposit he cheques for
collection) and drawer of cheques maintain account with different
banks, the collecting bank can receive the amount of cheque from the
paying banker by debiting his account or by sending representative to
paying bank.
Procedure
1. The clerks concerned collect all the cheques and enter them
in the clearing register.
2. Then he affixes stamps on these cheques and sorts out
cheques of different banks and prepares schedule for them.

48
3. These cheques are sent to clearing house. State Bank of
Pakistan has extended the services of clearing house. Where
branch of state bank is not situated the National Bank of
Pakistan act as the representative of the State Bank Of
Pakistan.
4. In the clearing house representatives of all banks are
gathered. Representatives of UBL will receive all the cheques
drawn of by other bank.
5. Finally they exchange their cheques mutually and settle their
accounts.
6. State Bank of Pakistan representatives will work out the
balance and will settle it.
The amounts of cheques are credited in the account of the
depositor on the third day. If the cheques are not returned. It is
understood that all the cheques are hounered but if the cheques
are received on third day then entry is reversed.
Activity 6 foreign Exchange Department
The main functions of the foreign exchange department are as follows:
1. To open the letter of credit to facilitate import and export.
2. Dealing with foreign currency
Importance of letter of Credit
The bulk of import trade now a day is mostly financed
through letter of credits. The method of payment through letter of
credit has greatly facilitated commercial relations between the
importer and exporter. They can safely rely on the credit of the bank
rather than on the credit standing of the importer. The importer too
will pay for the goods only when they are shipped and the documents
are received by the buyer’s bank.
Definition
“Letter of credit is written undertaking by an bank given to
the seller, at the request and on the instruction of the buyer to pay at

49
sight or at a determinable future date up to a stated amount within a
prescribed time limit and against stipulated document”
Parties of letter of credit
The following parties involved in the letter of credit:
1. Buyer (Applicant)
2. Seller (Beneficiary)
3. Issuing bank
Procedure of opening letter of credit
The letter of credit is opened by filling an application with
the bank and following information’s should be provided to the
bank.
1. Name of Beneficiary (seller)
2. Complete address of beneficiary
3. Types of letter of Credit whether
 Revocable
 Irrevocable
4. Mode and tine of payment
5. Description of goods
6. Payment of freight (paid or not)
7. Replacement or dispatch of goods
8. Detail of documents such as bill of lading, shipment
certificate, clearance of goods certificate.
9. Place of shipment
10. Whether the trans-shipment is allowed or not
11. Whether the partial- shipment is allowed or not
12. The date of shipment
13. The date and expiry of credit
14. Whether the credit is transferable or not
15. How the credit is to be advised by mail cable or telex
etc.

50
7.Activity of Account Department

Generally there are two types of system for maintaining an
account
1. Journal System
2. Voucher System
Generally journal system is adopted by some commercial
industrial institutions. In journal system entries are reported on Journal
Book and then posted to main ledger.
In banking voucher system is used for every transaction voucher
has to be prepared.
There are two types of vouchers:
 Debit vouchers
 Credit vouchers
Debit voucher is used for expenses and credit voucher is used for
credit. They are of red and green colour respectively.
8.Activity of Cash Department
The following books are maintained in the Cash Department
1. Receiving Cashier Book
2. Paying Cashier Book
3. Token Book
4. Scroll Book
5. Cash balance Book
When cash is received in counter. It is entered in the Scroll Book
and Receiving Cashier Book. At the close of the day, these are
balanced with each other.
When the cheque or any negotiable instrument is presented at
counter for payment. It is entered in the token book and token is
issued to the customer. The token and the Cashier make entry in the
paying book and payment is made to payee. At the close of day, the
Token Book and paying Cashier Book is balanced.

51
The consolidated figure of receipt and payment of cash is
entered in the cash balance book and drawn closing balance of cash.
Opening balance of Cash + Receipts – payments = Closing Balance.
This is very important department. An officer check all the books
maintained in this department.
Cash department prepares the utility bills sheets, which are sent
by the bank to WAPDA, Sui Gas Department, and PTCL etc for their
respective bills.

52
At my first day in UBL CENTRAL branch KUTCHERY ROAD Mandi

Baha Ud Din the Area operation manager, Mr.Manzoor Ghori has
introduce me with different officers and departments of the bank.
After that I visited every department one by one and observe what is
happening there. They all provide me the basic information which I
needed .They are all very cooperative .
They also provide me various information about bank affairs,
which I have not known previously.
Some of my observation and experience are discused below.
General information about banking affairs
At first day at bank the manager inquire about what you know
about bank already the bank manager has made some conversation
with me and ask some question.
After that he provides me the following information:
1.Banker’s customer relationship
Every day different person coming through bank front door to do

business with the bank however not all of those individuals will be
making transactions on their own behalf. They may represent their
employer, societies, club etc.
Definition of banker
According to banking companies ordinance 1962 Banking has

been defined as accepting for the purpose of lending or investment of
deposits of money form the public, repayable on demand or otherwise
and withdrawals by cheque, draft, order or otherwise.

53

54
Meaning of Customer
The person who maintains account with the bank is called the
customer.And the person who does not have any account with the
bank is not considered the customer.it is an important difference
because a bank only collects cheques for its own customer and not
other persons.
Relationship between banker and customer
The following types of relationship exist between banker and

customer.
1. Debtor and Creditor
2. Principal and Agent
3. Bailer and Bailee
4. Mortgager and Mortgagee
5. Banker as a Trustee
6. Executor, Attorney, Guarantor
1.Debtor and Creditor
The general relationship between banker and customer is Debtor

and Creditor. When the customer deposit amount in the bank, the
customer is called the “Creditor” and the Banker is Called the “Debtor”
When the Bank lends money to the customer the Bank is the
“Creditor” and the Customer become “Debtor”
2.Principal and AgENT

Bank receives documents from the customer like deposit cheque,
drafts, dividend warrant etc for collection as a “Principal” and the
bank performs various agency services such as purchasing security,
making contractual payment etc.

55
3.Bailor and Bailee
It is a contract where one one person delivers goods to another

person for some specific purpose. Bank provide lockers facility to its
customers in which customer keep jewelry, bonds and other valuables.
So when bank accept valuables for safe custody, the customer is
called the “Bailer” and the band is called the”Bailee”.
4.Mortgagor and Mortgagee
When the customer pledges a things like property, shop and

things which can not move from one place to another specific with the
bank as security for advance, the customer becomes the” mortgager”
and the banker is the “Mortgagee”.
5.Trustee
Banker keeps very important documents ,securities in the

custody of bank with out knowing about them thus the bank is acting
as trustee .
6.Executor, Attorney, Guarantor
Bank also act as Executor of a will of the diseased person. They

also provide guarantee to other person on behalf of the customer then
they act as a “Guarantor”.

56
Termination of Relationship
By Customer
The customer can terminate the relationship due to the following
reasons:
 Change in the place

 Not satisfied with bank Services
 Death of the Customer
By Banker
 Presenting cheques after banking hours

 Intimation of the death of the customer
 Insanity of Customer, not honor the cheques
 In case of bankcorruptacy
 After assigning all the balance to the third party
On receiving the Garnishee Order
 Constitutional change in the business of the firm

57
Customer rights and Duties
Rights
 Draw cheques upto Credit balance

 Receive Statement of Account
 Sue wrongful dishonour of Cheque
 Sue and demand compensation if the bank fail to maintain
Secrecy
Duties
 Present instrument within banking hours

 Within due time from their issue (stale postdated cheques)
 Keep cheque book in safe custody and in case of theft
immediately report to the bank
 In case of finding any forgery in the cheque issued by him

immediately report to the bank.
Rights and duties of the banker
Duties
 Honour customer cheques properly drawn

 Abides by the standing instruction of the customer relating to
the contractual and periodical payments.
 Maintaining the Secrecy

58
 Reasonable care of valuables depoit in the lockers.

 Stop operation of account after receiving the Garnishee order
(Court order
Rights
 Right to setoff credit balance against a debt due.

 Implied right to charge commission and interest on the services
performed and loan advanced by the bank.
 Bank has general Lien on cash, bill of exchange and securities

of customer for adjusting any money due to him.

59
Cheques
What is a cheque
As a customer you keep money in the bank ,you are supposed to

withdraw money when ever you want. But when you want to make
some payment and you have shortage of time you can draw the
cheque on the bank The bank is supposed to make payment to the
payee .In this way the bank saves the time of his customer.
Banks give you an option. You can order them to pay someone,
on your behalf. You can do this by giving a cheque to the payee. A
cheque is like an order to the bank.
When the payee shows it to your bank, the bank will pay the
money. This is called honoring a cheque.
Definition
Negotiable instrument Act 1881
“Cheque is a bill of exchange drawn on a specified banker

and not expressed to be payable otherwise than on demand”.
In other words
“a written order of a depositor upon a bank to pay to or

to the order of a designated party or to baearer, a specified sum of
money on demand”.
Parties of Cheque
There are the three parties of the Cheque
Drawer
Drawee
Payee

60
Drawer
This is the man who has an account with the bank . he has the
right to issue a cheque on the bank .This is called the drawer.
Drawee
The person directed to pay is called the Drawee. In case of the

cheque Drawee is the bank where the person (Drawer) maintain
account.
Payee
Payee is the person to whom the payment is to be made the
name of the payee is mentioned in the cheque .
Types of Cheques
There are two types of Cheques
Open Chequesp
Cross Cheques
1.Open Cheques
Open cheques are those which are payable at the counter
of the bank.
There are two types of open Cheques:
Bearer Cheques
According to instruction the payment is made to the man who
holds the cheque Drawer order the bank to make payment to the
person who hold the cheque
Order Cheques Drawer orders the bank to make payment to a
specified person whose name is mentioned in the cheque. The bank
pays only when it satisfied about the identity of payee.
2.Cross Cheque

61
A cheque with two small parallel lines is a crossed cheque.
You cannot encash such a cheque across the counter. It will only be
credited to a bank account. Such a cheque has to go through clearing.

62
Kinds of Crossing
There are two types of Crossing
General Crossing
Special Crossing
General Crossing
The drawing up of two simple parallel transverse lines on the
face of the cheque at the top left hand corner with or without
the words &co, Not negotiable or Account Payee only in know as
general crossing.
Special Crossing
A cheque deems to be crossed especially when it bears across
its face the name of the banker either with or without the words
not negotiable. In case of special crossing the payment can only
be made to the bank named therein the cheque.
Objective of Crossing
It prevent the payment of the cheque to a wrongful holder
It ensures safe payment to the concerned party
It is a guard against any cheating or theft.

63
Endorsement
"The writing of a person’s name either on the back
or the face of instrument followed by one’s signature for
the purpose of negotiation is called endorsement”.
Suppose you receive a crossed personal cheque. You can deposit

this cheque into your bank and receive payment in 2-3 days. What if
you needed the money urgently?
If the cheque is simply crossed, you can endorse the cheque to a

friend. The friend can give you cash against the cheque. He / she will
then deposit the cheque into their account.
The bearer cheque merely endorsed by delivery to another person
Working under deposit department
The first department in which I have worked was the deposit

department. Hare I met with an experienced banker Gulshan Amin
,incharge
Deposit department. He has provide me much information about

deposit department such as how an account is opened , what types of
account , what type of bankers customers and what documents are
required to open account for different persons

64
Account opening
The following types of accounts are opened by the bank:
1. Current Account
These account are opened with a minimum
amount of 3000 thousand rupees There is no profit no loss . The funds
are available on demand ,customer is not supposed to give any
advance call The bank normally open current account for the business
need of the funds. Under this category following types of accounts are
opened:
Proprietorship
This type of account are opened for business concern
laying an individual as theirs sole proprietor
Partnership
In this account all the concerned partners are involved
.there is a deed between all the partners who is held responsible for
the operation of account and for deposits. Specific instructions are also
there
A letter of partnership is also obtained from all the
partners so as to make them severally or jointly responsible for any
liability of the concern to Bank.
Joint Stock Company
This type of account is opened for private or public limited
company. The following documents are invariably obtained for
opening the accounts.
I. Memorandum and Article of Association
II. Certificate of incorporation
III. Resolution from the Board of Directors for opening the
account.
IV. List of Board of Directors.
V. Certificates of Commencement of business.

65
Socities/Club/Association
This type of account is opened for clubs, societies and
association. For opening such account it is necessary to obtain
copy of Bye-laws.
Profit/Loss Saving Account
I. Individual Account
II. Joint Stock Account
III. Checking Account
IV. Non-Checking Account
V. PLS term Deposit
This type of account is opened for a nominal rate of return .In
this accounts advanced call is required ,normally 7 days notice
before the encashment of money
In the first category 7 days notice is required for
withdrawal of investment.
In the second category advance notice of 30 days is
required for withdrawal and the percentage of profit for the
above mention types of account. If that as may be announced
by Government Annually.
Necessary modifications have been made in the existing
rule and procedure governing the above accidents that these
confirm to requirement of PLS based operation. A separate
counter shall be opened in each branch for accepting deposits on
profit & loss sharing basis.

66
Account Closing
1. There is a request for closing of an account
2. There is variation in the signature
3. Ledger keeper with his initials writes the outstanding
balance in the account on the letter.
The letter is forwarded to the Manager for his approval.
4. The Manager makes an approval to recovered the amount
Rs 5 in C.D and Rs 2 PLS Account.
5. The unused cheques leaves are destroyed, serial number
of which is already mentioned on the letter.
6. The S.S Card is taken out and is cancelled by affixing
account closed stamp.
7. The entry is made in account opened and closed register in
red ink.
DORMATN.IN-OPERATIVE & UNCLAIMED DEPOSITS ACCONTS
Dormant Accounts:
Current accounts not operated for 6 months and saving
account not operated for three years, shall be classified and in-
operative accounts.
Unclaimed Deposits Accounts
Bank Drafts, T.Ts, Payment Orders and M.T outstanding for

3 years should be transferred to unclaimed deposit accounts to be
opened in current ledger for this purpose.

67
Procedure for opening and account
The opening of an account is the basic step to build relationship

between customer and banker .Opening of an account increases the
business of the bank . The account opening form is a prime document
which gives the detailed information about the customer .
When a customer wants to open an account, he comes to the bank; the

bank officer gives him an account opening form. The customer fills the
account opening form.
Only the one form is used to open all the above mentioned
accounts . ALL ACCOUNTS are metionedin the form .The contents
of the account opening forms are as under:
 Account Number and Date.

 Name of the Branch.
 Type of Account.
 Nature of Account.
 Currency.
 Particulars of Deposit.
 Particulars of Account.
 Operational Instructions.
 Special Instructions.
 Zakat Deduction.
 Details of other Bank Accounts.
 Personal Information. ( phone number, email, mobile number
etc)
 Initial amount he want to deposit

68
 Name of other person to whom bank can contact when the

person will not available
 Introducer.
 Authorized Signature.
Before providing the AOF the banker make a preliminary
introduction of the customer and know the reason for opening the
account. After that banker gets Copy of ID card and also check the
original ID card. If the customer can make signature then there is no
need to obtain the Pictures of the Customer but if the customer is
Illiterate or there is no flow in the signature then the banker obtain two
photo copies one is pasted over the Account opening form and other is
pasted over the Specimen signature card. After that the person is
asked to verify the signature of introducer, a bank official make
verification and put his initial over the AOF. After that new Account
number is allotted and registered in the Account opening register,
The customer fills the pay in slip and deposit the amount in his
account. Now pass book issued to customer due to introduction of
Computer in the UBL branches.
One official then send letter of acknowledgment (letter of thanks
to customer. It is a mode of verification the customer address.
Chequebook only issue when the customer brings this letter.
When the customer brings the letter, he fills the chequebook
requisition slip and the chequebook is issued to him.
The customer can know the status of its account position
whenever he wants.

69
Advance Department
The next department where I have made training is the
advance department. Here I got new information such principles of
lending, types of security, types of advances, procedure of making
loan etc
Principles of Lending
The following are the principles, which the bank follows while
advancing loans.
 Safety
 Liquidity
 Dispersal
 Remuneration
 Suitability
Type of Advances
UBL advances the following types of advances:

1. Running Finance (Overdraft)
2. Cash Finance (Cash Credit)
3. Demand Finance (Loan)
4. Discounting the bills of Exchange

70
Types of Securities
The following are the types of securities are generally accepter

for advances.
Banker’ Lien
It is a right used by the bank to retain the possession of the property
of the customer . This right is used only when the dues are not cleare
Lien gives a person only a right to retain the possession of the goods
and not the power to sell.
Guarantee
The bank use this right when it receives an application
for granting loan but it never receives any tangible securities against its
amount . Then the bank has a right to demand a personal guarantee from the
applicant his right
Mortgage
In this procedure a bank is trying to save his amount by
securing the immovable property .The person in whose favour property is
transferred is known as mortgage. The man who transfers the rights is
known as mortgager.
Hypothecation
Hypothecation is defined as” a legal transaction
whereby goods may be made available as security for a debt without
transferring property or the possession to the lender”. Hypothecation is
very risky on two main grounds. One, as the goods are in the
possession of the owner, the borrower may take out the goods without

71
informing the bank. Secondly, the bank does not have a legal claim as
it does not have a valid charge over the goods.
Pledge
It is a security against the given amount of the lender
These may be tangible things .In this case the goods of the party are
under the supervision of the bank For example the keys of the
godowns are with the bank. The delivery of documents of title of the
good is also a valid pledge . the person delivering the goods as
security is called pledger and the person to whom the the goods is
delivered is called pledgee
PROMISERY NOTES
Sometimes the promissory note is also accepted as a
security. A promissory note is an instrument n writing containing an
unconditional undertaking signed by the maker, to pay on demand or
at a fixed or determined future time a certain sum of money only, to or
to the order of certain persons or the to the bearer of the instrument.
Procedure of making an Advance
When a client applies for the grant of loans the
concerned branch of the bank considers his request by examining its
feasibility the 3C’s reputation of the client, the audited annual
accounts and then gives its own opinion and suggestion finally the
bank branch recommends the case to Zonal office. The Zonal office
process the case and forwards the G.M. office and then it is forwarded
to head office. Actually the case is sanctioned at Head Office and then
is returned to the initiating branch for disbursement.
The initiating bank branch takes the security
necessary for the loan and makes disbursement according to
disbursement schedule.

72
Work under Remittance Department

Remittance department performs the following functions:
1.Mail Transfer (MT)
2.Telegraphic Transfer (TT)
3.Denmand Draft (DD)
1.Mail Transfer (MT)
When a customer requests the bank to transfer his
money from one branch of bank to another branch of the
same bank or from city to another city to the same bank or
any other bank the customer fills the form given by bank.
2.Telegraphic Transfer
This type of transfer is simple. After filling in the
application form the concerned officer shall fill the TT form.
Then it is sent to the required bank, which on receiving it
immediately makes the payment to the customer and
afterwards the vouchers are sent to that bank by ordinary
mail.
3. Demand Draft (DD)
The Demand Draft is just like a cheque and issued when
the customer wants to take cash from the branch on which issued at
the place of destination. The idea behind it is to avoid the risk and
burden of currency notes in huge quantity. The Demand Draft can
easily be handled whatever amount it has and the money can easily be
taken from the bank when it is presented.
Cash department
Here I observe the following
CHECKING AND PAYMENT OF CHEQUES:
Before making payment on cheques, a banker should take into
consideration the following points

73
 Name of the Bank & Branch.

 Amount in figure and words.
 Date.
 Signature of Drawer (verification).
 Balance checking
Stop Payment
The instructions received by the bank in writing signed by the
account holder requesting there into stop the payment of a cheque
isseued by him due to certain reasons are cllled as stop payment
instructions. The following points are to be observed.
a) Such instructions must be in writing and signed by the
account holder.
b) If an intimation regarding the stop payment instructions
is received on the telephone or telegram, note to that
effect is made on the relevant ledger folio with red
pencil.
c) During the time till the stop payment instructions are
not received in writing and the Cheque for which the
intimation about stop payment to be made is presented
for payment, the same is to be returned with the

74
objection “Payment Pending requires drawer’s
confirmation”.
On receipt of the letter the date and time is noted down, the
signatures of the account holder is verified and the letter is delivered
to the ledger keeper, who checks the accounts if the said cheques has
not already been paid. Thje stop payment stamp is affixed on the
ledger folio and the particulars of the cheques are entered.
Customer service department

Customer service is very important to attract new customers and
retain existence customers. Only those banks will survive which give
importance to their customers.
In customer service department I have guide the strange
customer and people I.e. where they want to go. I have also filled
cheques, pay in slip and other such instrument which the illiterate and
other persons can’t fill.
Utility bills collection
I have also spend my few days of training in the collection of
utility bills such as LESCO (WAPDA) PTCL and Sui Gas bills
Others department
Almost I have observed all the department of the bank. In audit
department I have observed that the account, which I have filled, are
rechecked to analyze any deficiency. Even if there is no flow in the
signature of the customer then customer is again asked to provide his
photo or to make signature again.

75

76
UNITED BANK LIMITED

PROFIT AND LOSS ACCOUNT HORIZANTAL ANALYISS
(Rupees in Thousands)
2002 2001 Decrease %

Percentage
Mark-up/return/interest earned 11,527,524 11,468,051 59,473 0.52
Mark-up/return/interest expensed (5,475,559) (6,347,215) 871,656 (13.73)
Net Mark-up/return/interest income 6,051,965 5,120,836 931,129 18.18
Total Provision (746,323) (1,262,908) 516,585 (40.90)
Net Mark-up/return/interest income after provisions 5,305,642 3,857,928 1,447,714 37.53
NON-MARK-UP/RETURN/INTEREST INCOME
Total non-mark-up/return/interest income 3,380,701 2,914,679 466,022 15.99
Total Income (funded non funded) 8,686,343 6,772,607 1,913,736 28.26
Total non-mark-up/return/interest
expenses (5,930,632) (5,300,789) (629,843) 11.88
PROFIT BEFORE EXTRA-ORDINARY ITEMS 2,755,711 1,471,818 1,283,893 87.23
Extra-ordinary item 25,738 (7,200,000) 7,225,738 (100.36)
PROFIT/(LOSS) BEFORE TAXATION 2,781,449 (5,728,182) 8,509,631 (148.56)
Total Taxation (1,318,796) (1,738,509) 419,713 (24.14)
PROFIT/(LOSS) AFTER TAXATION 1,462,653 (7,466,691) 8,929,344 (119.59)
Share of minority interest (10,612) (6,455) (4,157) 64.40
PROFIT/(LOSS) AFTER TAXATION 1,452,041 (7,460,236) 8,912,277 (119.46)
Accumulated loss brought forward (27,282,709) (19,820,684) (7,462,025) 37.65
Accumulated loss adjusted against share capital 25,201,680 0 25,201,680
(628,988) (27,280,920) 26,651,932 (97.69)
Total Surplus on revaluation of fixed assets 238,273 0 238,273
Profit available for appropriation (390,715) (27,280,920) 26,890,205 (98.57)
Transfers 0
Transfer to Statutory reserve (331,672) (1,789) (329,883) 18,439.52
Capital reserve 0 0 0
Revenue reserve 0 0 0
Proposed cash dividend 0 0 0
Accumulated loss carried forward (722,387) (27,282,709) 26,560,322 (97.35)
Basic earnings/(loss) per share 0.62 (3.32) 4 (118.67)

77
UNITED BANK LIMITED

PROFIT AND LOSS ACCOUNT
HORIZANTAL ANALYSIS
2,002 2,001
Mark-up/return
/interest earned 11,527,524 11,468,051
Mark-up/return/interest expensed (5,475,559) (6,347,215)
Net Mark-up/return/interest
income 6,051,965 5,120,836
Provision against non-performing

advances (858,708) (1,489,577)
Provision for diminution in the
value of investments 160,289 242,400
Bad debts written off directly (47,904) (15,731)
Total Provision (746,323) (1,262,908)
Net Mark-up/return/interest
income after provisions 5,305,642
NON-MARK-
UP/RETURN/INTEREST INCOME
Fees, commission and brokerage
income 1,797,892 1,097,148
Dividend income/gain on sale of
investments 285,900 67,879
Income from dealing in foreign
currencies 1,086,152 1,584,894
Other income 210,757 164,758
income 3,380,701 2,914,679
Total Income(funded non funded) 8,686,343 6,772,607

78
Administrative expenses (5,879,027) (4,668,553)

Other provisions/write offs (27,353) (521,367)
Other charges (24,252) (110,869)
expenses (5,930,632) (5,300,789)
PROFIT BEFORE EXTRA-
ORDINARY ITEMS 2,755,711 1,471,818
Extra-ordinary item 25,738 (7,200,000)
PROFIT/(LOSS) BEFORE
TAXATION 2,781,449 (5,728,182)
Taxation – Current (197,675) (253,654)
Prior years (18,701) (1,484,855)
Deferred (1,102,420) 0
Total Taxation (1,318,796) (1,738,509)
PROFIT/(LOSS) AFTER TAXATION 1,462,653 (7,466,691)
Share of minority interest (10,612) (6,455)
PROFIT/(LOSS) AFTER TAXATION 1,452,041 (7,460,236)
Accumulated loss brought
forward (27,282,709) (19,820,684)
Accumulated loss adjusted
against share capital 25,201,680 0
Net Profit Available for Provisions
and Transfers (628,988) (27,280,920)
Transfer from:
Surplus on revaluation of fixed
assets
Prior years 183,313 0
Current year 54,960 0
Total Surplus on revaluation of
fixed assets 238,273 0
Transfer to:
Statutory reserve (331,672) (1,789)
Capital reserve 0 0
Revenue reserve 0 0
Proposed cash dividend 0 0
Total Transfers (331,672) (1,789)
Accumulated loss carried forward (722,387) (27,282,709)
Basic earnings/(loss) per share 0.62 (3.32)

79
UNITED BANK LIMITED

VERTICAL ANALAYSIS
ASSETS
2,002 2,001 2002 2,001
ASSETS Percentage Percentage
Cash and balances with
15,642,055 15,095,234
treasury banks 8.15 8.95
Balances with other banks 18,750,563 20,995,855 9.78 12.45
Lending to financial
3,627,557 4,370,006
institutions 1.89 2.59
Investments 67,506,369 28,578,561 35.19 16.95
Total Advances 75,795,024 79,780,718 39.51 47.31
Total other assets 2,641,471 8,641,263 1.38 5.12
Operating fixed assets 2,831,534 2,864,018 1.48 1.70
Deferred tax assets 5,026,459 8,297,500 2.62 4.92
Total Assets 191,821,032 168,623,155 100.00 100.00
Increase
Decrase
vertical anlysis
2002 2001 2002-2001
ASSETS
treasury banks 8.15 8.95 (0.80)
Balances with other banks 9.78 12.45 (2.68)
institutions 1.89 2.59 (0.70)
Investments 35.19 16.95 18.24
Total Advances 39.51 47.31 (7.80)
Total other assets 1.38 5.12 (3.75)
Operating fixed assets 1.48 1.70 (0.22)
Deferred tax assets 2.62 4.92 (2.30)
Total Assets 100.00 100.00

80
UNITED BANK LIMITED

VERTICAL ANALAYSIS
LIABILITIES
Percentage Percentage
2,002 2,001 % %
LIABILITIES 2002 2,001
Bills payable 1,847,025 1,540,592 1.030 0.927
Borrowings from financial institutions 5,347,349 12,875,351 2.981 7.748
Deposits and other accounts 162,166,385 141,316,174 90.400 85.042
Sub-ordinated loan 0 1,539,800 0.000 0.927
Liabilities against assets subject to finance lease 81,548 92,386 0.045 0.056
Other liabilities 0.000 0.000
Deferred 861,935 923,273 0.480 0.556
Others 9,083,064 7,884,140 5.063 4.745
Deferred tax liabilities 0 0 0.000 0.000
Total 179,387,306 166,171,716 100.000 100.00
vertical increase
Analysis Decrease
LIABILITIES 2002 2,001 2002-2001
Bills payable 1.030 0.927 0.10
Borrowings from financial
institutions 2.981 7.748 (4.77)
Deposits and other accounts 90.400 85.042 5.36
Sub-ordinated loan 0.000 0.927 (0.93)
Liabilities against assets
subject to finance lease 0.045 0.056 (0.01)
Other liabilities 0.000 0.000 0.00
Deferred 0.480 0.556 (0.08)
Others 5.063 4.745 0.32
Deferred tax liabilities 0.000 0.000 0.00
Total 100.000 100.00
increase

81
UNITED BANK LIMITED

VERTICAL ANALAYSIS
CAPITAL
Vertical Analysis
2002 2001 2002 2,001
% %
Share capital 5,180,000 22,481,680 41.66 917.08
Reserves 4,258,947 3,960,453 34.25 161.56
Accumulated losses (722,387) (27,282,709) (5.81) (1,112.93)
Minority interest 1,271,700 1,168,264 10.23 47.66
Surplus/(deficit) on revaluation of assets 2,445,466 2,123,751 19.67 86.63
Total net assets 12,433,726 2,451,439 100.00 100.00
Increase Increase
2002 2,001. (Derease)
% % 2002-2001
Share capital 41.66 917.08 (875.42)
Reserves 34.25 161.56 (127.30)
Accumulated losses (5.81) (1,112.93) 1,107.12
Minority interest 10.23 47.66 (37.43)
Surplus/(deficit) on revaluation of assets 19.67 86.63 (66.96)
total net assets 100.00 100.00

82
UNITED BANK LIMITED

HORIZANTAL ANALYSIS
BALANCE SHEET
Increase Percentage
2002 2001 (Derease) %
ASSETS 2002-2001 2002-2001
Cash and balances with treasury
15,642,055 15,095,234
banks 546,821 3.62
Balances with other banks 18,750,563 20,995,855 (2,245,292) (10.69)
Lending to financial institutions 3,627,557 4,370,006 (742,449) (16.99)
Investments 67,506,369 28,578,561 38,927,808 136.21
Total Advances 75,795,024 79,780,718 (3,985,694) (5.00)
Total other assets 2,641,471 8,641,263 (5,999,792) (69.43)
Operating fixed assets 2,831,534 2,864,018 (32,484) (1.13)
Deferred tax assets 5,026,459 8,297,500 (3,271,041) (39.42)
Total Assets 191,821,032 168,623,155 23,197,877 13.76
LIABILITIES
Bills payable 1,847,025 1,540,592 306,433 19.89
Borrowings from financial institutions 5,347,349 12,875,351 (7,528,002) (58.47)
Deposits and other accounts 162,166,385 141,316,174 20,850,211 14.75
Sub-ordinated loan 0 1,539,800 (1,539,800) (100.00)
Liabilities against assets subject to
finance lease 81,548 92,386 (10,838) (11.73)
Other liabilities
Deferred 861,935 923,273 (61,338) (6.64)
Others 9,083,064 7,884,140 1,198,924 15.21
Deferred tax liabilities 0 0 0
Total Liabilities 179,387,306 166,171,716 13,215,590 7.95
Net Assets 12,433,726 2,451,439 9,982,287 407.20
REPRESENTED BY
Share capital 5,180,000 22,481,680 (17,301,680) (76.96)
Reserves 4,258,947 3,960,453 298,494 7.54
Accumulated losses (722,387) (27,282,709) 26,560,322 (97.35)
Minority interest 1,271,700 1,168,264 103,436 8.85
Surplus/(deficit) on revaluation of
assets 2,445,466 2,123,751 321,715 15.15
total net assets 12,433,726 2,451,439 9,982,287 407.20

83
UNITED BANK LIMITED

EVALUATION BALANCE SHEET
ASSETS SIDE
2002-2001
Increase Percentage
ASSETS Dcrease %
2002-2001 2002-2001 EVALUATION
treasury banks 546,821 3.62 Improved
Balances with other banks (2,245,292) (10.69) Deteriorated
institutions (742,449) (16.99) Deteriorated
Investments 38,927,808 136.21 Improved
Advances
Performing 2,088,363 3.07 Improved
Non-Performing net of
provision (6,074,057) (51.41) Improved
Total (3,985,694) (5.00) Deteriorated
Other assets
Taxes recoverable (5,031,264) (94.11) Improved
Others (968,528) (29.39) Improved
Total (5,999,792) (69.43) Improved
Operating fixed assets (32,484) (1.13) Deteriorated
Deferred tax assets (3,271,041) (39.42) Deteriorated
TOTAL ASSETS 23,197,877 13.76 Improved

84
UNITED BANK LIMITED

EVALUATION BALANCE SHEET
LIABILITIES AND
CAPITAL SIDE
2002-2001
LIABILITIES
Bills payable 306,433 19.89 Deteriorated
Borrowings from financial
institutions (7,528,002) (58.47) Improved
Deposits and other accounts 20,850,211 14.75 Improved
Sub-ordinated loan (1,539,800) (100.00) Improved
Liabilities against assets
subject to finance lease (10,838) (11.73) Improved
Other liabilities
Deferred (61,338) (6.64) Improved
Others 1,198,924 15.21 Deteriorated
total 1,137,586 12.92 Deteriorated
Deferred tax liabilities 0 Constant
Total
Net Assets
REPRESENTED BY:
Share capital (17,301,680) (76.96) Deteriorated
Reserves 298,494 7.54 Improved
Accumulated losses 26,560,322 (97.35) Improved
Equity 9,557,136 (1,136.97) Improved
Minority interest 103,436 8.85 Improved
Surplus/(deficit) on
revaluation of assets 321,715 15.15 Improved
Net Assets 9,982,287 407.20 Improved

85
UNITED BANK LIMITED

PROFIT AND LOSS ACCOUNT
EVALUATION
2002-2001
(Rupees in Thousands)
Increase Percentage EVALUATION

Decrease %
Mark-up/return/interest earned 59,473 0.52 Improved
Mark-up/return/interest expensed 871,656 (13.73) Improved
Net Mark-up/return/interest income 931,129 18.18 Improved
Total Provision 516,585 (40.90) Improved
Net Mark-up/return/interest income after provisions 1,447,714 37.53
Total non-mark-up/return/interest income 466,022 15.99 Improved
Total Income (funded non funded) 1,913,736 28.26 Improved
expenses (629,843) 11.88 Deteriorated
PROFIT BEFORE EXTRA-ORDINARY ITEMS 1,283,893 87.23 Improved
Extra-ordinary item 7,225,738 (100.36) Improved
PROFIT/(LOSS) BEFORE TAXATION 8,509,631 (148.56) Improved
Total Taxation 419,713 (24.14) Improved
PROFIT/(LOSS) AFTER TAXATION 8,929,344 (119.59) Improved
Share of minority interest (4,157) 64.40 Improved
PROFIT/(LOSS) AFTER TAXATION 8,912,277 (119.46) Improved
Accumulated loss brought forward (7,462,025) 37.65
Accumulated loss adjusted against share capital 25,201,680 Improved
26,651,932 (97.69)
Total Surplus on revaluation of fixed assets 238,273 Improved
Profit available for appropriation 26,890,205 (98.57) Improved
Transfers 0
transfer to Statutory reserve (329,883) 18,439.52 Improved
Capital reserve 0
Revenue reserve 0
Proposed cash dividend 0
Accumulated loss carried forward 26,560,322 (97.35) Improved
Basic earnings/(loss) per share 4 (118.67) Improved

86
Ratio analysis
Introduction
There are many different ways in which we can determine the

financial standing aan position of any concern, however the most efficient
and widely used method for this is the ratio analysis. This analysis can be
derived either from the balance sheet or from income statemnt
The importance and significance of this analysis varies

according to the type of the analysis done. The nature of the business in
respect of the particular group to whose needs the analysis taken into
consideration. For example the creditors of the company have special
interest in profitability of the company to pay current obligation and thus
requiring information concerning the ration of current assets to current
liabilities. Stockholder both present and future are concerned with the
dividends that the company declares and the period after which is does so
and earnings per share that will form the basis for the declaration and
payment of dividend.
On the other hand the management is concerned with the

liquidity of the company and also about the future of the business.

87
The following are the parties interested in ratio analysis
1. Shareholders
2. Creditors
3. Management
4. Present and prospective shareholders
5. Government
Types of ratio analysis
Ratio analysis is not merely the application of a formula to

financial data to calculate a given ratio. More important is the
interpretation of ratio then calculation of value.
Two types of ratio comparison can be made

1. Cross sectional analysis
2. Time-Series Analysis
Cross Sectional analysis
Under this ratio entity financial ratio are compared with the ratio
of other entity at the same point in time. For example if we calculate
ratio of UBL then we compare it other banks financial ratios then it is
called Cross Sectional Analysis.

88
Time Series Analysis
When we compare current financial year ratios with the past

yarer it is called Time-Series analysis. Here we want to know that
either this year ratio has been improved or decreased.
There are two types of Time-Series analysis

1. Horizontal analysis
2. Vertical analysis
Combined analysis
Under this ratio analysis both Cross sectional and Time
series analysis is conducted and then compared with industry average.
RATIO ANALYSIS
To analyze the performance of UBL, the ratios have been
divided into the following Category:
1. Liquidity ratios
2. Profitability ratios
3. Long term solvency ratio
4. Bank affairs (activity) ratios
5. Analysis of advances
Liquidity Ratios (Solvency Ratios)

These are the ratios, which measures the short-term
solvency or financial position of a company.
Ratio
1. Current Ratio
2. Working Capital

89
Current Ratio
Formula:
Current Assets
Current liabilities
2002 2001
Current Assets 34,392,618 36,091,089
Current liabilities 7,194,374 14,415,943
Ratio 4.78 2.50
2002 2001
4.78:1 2.50:1
Contents
Current assets
current assets 2,002 2,001

Cash and balances with treasury banks 15,642,055 15,095,234
Balances with other banks 18,750,563 20,995,855
Total 34,392,618 36,091,089
Current liabilities
current liabilities 2002 2001

Bills payable 1,847,025 1,540,592
Borrowings from financial institutions 5,347,349 12,875,351
Total 7,194,374 14,415,943
Comments
Current ratio tells the company ability to meets its current
obligation with its current assets

90
Despite of huge losses in the past UBL has satisfactory current ratio
4.78 in 2002 and 2.5 in 2001. The standard current ratio is considered
2:1, UBL current ratio is above then standard.
Working Capital
Formula
Current assets - Current liabilities
Calculation
2002 2001
Current Assets 34,392,618 36,091,089
Less Current Liabilities 7,194,374 14,415,943
Working Capital 27,198,244 21,675,146
Comments
The bank working capital ratio is also favorable. It has increase
in the current year
Net working Capital is the safety cushion to creditors. Higher the
net working capital greater the company creditors satisfied.
2.Profitability Ratios
An indication of good financial health and how effectively the
firm is being managed is the company ‘s ability to earn a satisfactory
profit and return on investment.
Ratios
Return on total Assets
Formula
Net profit (Loss) after Tax
Average total assets

91
Calculation:
2002 2001
Net Profit( Loss)After Tax 1,462,653 (7,466,691)
Divided by Average Total Assets 180,222,094 168,623,155
Ratio (Percentage) 0.81 -4.43
Contents:
1.Net profit after tax
2.Average total assets
Average total assets
2002 2001
Assets 191,821,032 168,623,155
Average assets 180,222,094 168,623,155
Comments:
Return on assets which is usually called return on

investment (ROI) that measure the overall effectiveness of
management in generating profit with its available assets. The
higher return on total assets is considered best.
UBL return on total assets has improved in the year 2002 due to
increase in profit but there was a loss in the previous year. In this
year both profit and assets has been increased which is a favourable
sign.

92
Earning per Share

Formula:
Net profit after tax
Number of Ordinary Shares

Calculation:
2002 2001
Net Profit (Loss) After Tax 1,462,653 (7,466,691)
Weighted average number of ordinary shares 2,339,810,449 2,248,168,000
Earning Per Share 0.63 (3.32)
Contents
1.Net profit after tax
2.number of ordinary Shares
Comments:
The Bank’s earning per share (EPS) is generally of interest
to present or perspective shareholders and management. It
represents the amount earned on behalf of each outstanding
share of common stock.
The Earning per share of UBL has improved slightly. This
ratio is very low because of heavy losses . in the year 2002
profit has increase but Shares outstanding has also increase .

93
Book Value or Break Value of Share
Formula:
Net Assets
Number of share outstanding

Calculation
2002 2001
Net Assets 12,433,726 2,451,439
Number of ordinary shares 2,339,810,449 2,248,168,000
Book value per Share 5.31 1.09
Comments
Book value per share represent the net assets available to
shareholders after paying all liabilities current or fixed.
Book value per share also improve greatly in year 2002.
the main reason is that there wase much increase in net assets
so when net assets increase book value of share also improve.
Solvency is a company ability to

Long term Solvency Ratios
meet its long term obligation as the become due. It is also called
leverage ratios. Further solvency is dependent upon profitability
since in the long run a firm will not be able to meet its debts
unless it is profitable.
When debt is excessive additional financing should be
obtained primarily from equity resources.

94
Management might also consider lengthening the maturity

of debt and staging the debt repayment dates.
The important solvency ratio are as follows
Debt Ratio
Formula
Total liabilities less subordinated loans
Total Assets
Calculation
2,002 2,001
Liabilities less subordinated loan 179,387,306 164,631,916
Total Assets 191,821,032 168,623,155
Debt Equity Ratio 93.52 98
Sub ordinate loan represent loan from directors and other

internal loans
Contents
Total liabilities less subordinated loan
Total assets
Total liabilities less subordinated loan
2002 2001
Liabilities 179,387,306 166,171,716
Less Subordinated Loans 0 1,539,800
179,387,306 164,631,916

95
Comments:
Debt ratio measure the proportion of total assets financed by the

creditors The higher the ratio , the greater the amount of others
money used in an attempt to generate profit.
Hare in the year 2002 debt equity ratio has increase which mean
that equity has increase. The main reason for improvement in
this ratio is no subordinated loan in 2002 and increase in assets
so both the assets base and equity base increase.
Assets Turnover Ratio
Formula
Profit Before Extra ordinary items
Total Assets
Calculation
Increase
2002 2001(Decrease)
Profit Before Extra Ordinary items 2,755,711 1,471,818 1,283,893
Total Assets 191,821,032 168,623,155 23,197,877
Assets Turnover Ratio % 1.436605241 0.872844539 0.564
Comments

96
This ratio measures the company efficiency to utilize its

total assets to earn profit
In the year 2000 UBL assets turnover ratio has slightly
improve . Both profit and assets has been increased but the
table shows that increase in assets more than the increase in
profit therefore ratio has improve but very little.
Bank Affairs(activity ratio)
There are two main activities of the bank

receiving deposits and lending . Bank is an
intermediate party between lenders and
depositor. It borrow from one party and lend
to others. It borrows at less rate and lends at
higher rate the difference between the two rate
is known as spread.
There are basically two types of deposits

1.Current Deposit
2.Fixed Deposit
There are also two types of Advances
1.Short term
2.Long Term
When bank advance it keep in mind the

principle of lending, saetey liquidity, dispersal,
Collateral, Remuneration.
But in spite of great effort there are still some loan become non-
performing which means that either interest or principal is due
but not paid.
Here some important activity ratios are discussed:

97
Average advance to average deposit

Formula:
Average Advances
Average Deposits
Calculation:
2002 2001
RS in millions Rs in millions
Average Advances 78,856.50 77,839.50
Average Deposits 152,400 135,656
Percentage % 51.74 57.38
Contents
Average Advances
A advances
2002 2001 2000
Rupees in Millions
UBL 72,426 85,287 70,392
Average Deposits
RS in millions
2002 2001 2000

162,166 142,633 128,679
Comments:
This ratio tells how much bank has given advances from its
deposits. This ratio during the tear 2002 has reduced by 6%
which is quite satisfactory because bank deposits increase much
but in the current year non performing advances reduced and
performing advances increase. Therefore the ratio reduced little.
Note:
For calculating average advances, Advances under Export
refinance scheme of SBP has Excluded.

98
Foreign currency deposit to total deposit
Formula:
Foreign
currency deposit
Total
deposits
Calculation:
2002 2001
(Rs in Thousands)
Foreign Currency Deposit 38,527,922 37,778,096
Total Deposit 162,166,385 141,316,174
Ratio % 23.76 26.73
Comments
The purpose of this ratio is how much percentage of
foreign currency deposit in the total deposit.
In the year 2002 both foreign currcy deposit and total
deposit has increased but foreign currency deposit has increased
less than total deposits. The main reason for decreasing Foreign
currency deposit is reduction in the rate of interest on these
deposits. Rate of interest on these deposit are determined by
SBP. So when interest decrease deposit also decrease. But the
total deposit has increased due to progressive step taken by the
bank for introducing new deposit schemes.
Non-performing Advances to total advances

99
Formula:
Non-performing Advances(Gross)
Total Advances
Calculation:
2,002 2,001
Rs in Thousands
Non performing Advances gross 24,134,955 32,179,380
Advances 75,795,024 79,780,718
Ratio % 31.84 40.33
Contents
Non-performing advances gross
2002 2001
Rupees in Thousands
Non-performing net of provision 5,739,798 11,813,855
Provision against non-performing advances 18,395,157 20,365,525
Non performing advances gross 24,134,955 32,179,380
Comments:
The purpose to calculate this ratio is to analyze whether
non-performing advances has increased or decreased.
The above table shows that non-performing and total
advances have been decreased. But non-performing advances
reduced 8 millions while total advances reduced 4 millions
therefore this ratio decrease which shows the efficiency of bank’s
management.

100
Performing advances to total advances
Formula:
Performing advances
Total Advances
Calculation:
2002 2001
RS in Thosands
Performing Advances 70,055,226 67,966,863
Advances 75,795,024 79,780,718
Ratio 92.43 85.19
Comments:
This ratio indicates percentage of performing advances to
total advances. The above table shows that this ratio improved
in the year 2002 by 7%. Reason is that performing advances
increase and total advances reduced. Total advances reduced
due to decrease non- performing advances.
Category of non-performing advances:
2002 %
RS in Thhousands Percentage
Other Assets Especially Mentioned (OAEM) 1,137,774 3.97
Substandard 405,305 1.42
Doubtful 316,389 1.10
Loss 26,776,246 93.51
Total (only holding Company) 28,635,714 100.00

101
Comments:
The above table shows that almost 93% of non-performing
advances have been categorized as loss. The main reason for
this is Yellow cab scheme and other past schemes of
Government. Therefore UBL take much care while advancing
loans. The efficiency of management reveals in year 2002 i.e.
reduction in non- performing advances.
Analysis of Advances
Advances are the one of the main activity of the bank and
most important source of bank income. Almost 50% revenue
generate by this activity.
But bank has dispersed its debts to all the sectors of
economy and not only to single sector. Because if the bank gives
all or major advance only to a single sector then there are more
chances to become this debt doubtful and loss.
Therefore the bank has to give advance to all sector of
economy.
At this point we will analyze the advances provided by UBL
to some specific sectors of the economy.
Textile sector advances to total advances
2,002
Rs in Thousands
Advance to Textile Sector 27,009,493
Total Advances 75,795,024
Percentage % 35.63
Chemical and pharma Ceutical advances

102
share of advance in Chemical and pharma ceutical 2002

Sector RS in thousands
Advance to chemical Sector 2,557,619
Total advance 75,795,024
Percentage % 3.37
Credit exposure in Government /Public Sector
2002
RS in Thousands
Advance to Public/Government 19,320,749
Total advances 75,795,024
Percentage % 25.49
The above analysis indicate that 35% of the total advances

is given to textile sector. The main reason is that textile
industry is export oriented industry and it demand huge finance
which is provided by the bank

103
Advances and Deposits by Sector
ADVANCES DEPOSITS
Amount % Amount %
Sector RS in Thousands RS in Thousands
Chemical and Pharmaceuticals 2,557,619 2.6 2,110,713 1.3

Agribusiness 8,845,012 8.9 11,913,252 7.4
Textile 27,009,493 27.2 1,207,000 0.7
Cement 444,116 0.4 491,504 0.3
Sugar 538,805 0.5 426,281 0.3
Shoes and leather garments 1,695,714 1.7 1,231,557 0.8
Automobile and transportation 5,755,482 5.8 3,041,198 1.9
Financial 2,761,727 2.8 8,015,250 4.9
Insurance 0 0 2,444,089 1.5
Electronics and electrical appliances 2,835,290 2.9 1,143,700 0.7
Energy production and transmission 4,061,263 4.1 10,941,433 6.7
Individuals 12,768,294 12.9 105,471,753 65
Others 29,943,507 30.2 13,728,655 8.5
Less: Provision for bad debts -18,395,157 0
Less: Interest suspense account -5,026,141 0
Total advances 75,795,024 100 162,166,385 100

104
UNITED BANK LIMITED

Evaluation of ratios
2002-2001
Increase
2002 2001 (Decrease) Evaluation
2002-2001 2002-2001
Liquidity Ratios
Current ratio 4.78 2.5 2.28 Improved
Working Capital 27,198,244 21,675,146 5,523,098.00 Improved
Profitability ratios
Reutn on total assets 0.81 -4.43 5.24 Improved
Earning per Share (EPS) 0.63 -3.32 3.95 Improved
Book value (Break up Value) 5.31 1.09 4.22 Improved
Long term solvency
Debt equity ratio 93.52 98 (4.48) Improved
Assets Turnover 1.437 0.873 0.56 Improved
Bank Affairs or Activity Ratios
Average Advances to average deposits 51.74 57.38 (5.64) Deteriorated
Foreign currency deoisit to total deposit 23.76 26.73 (2.97) Deteriorated
non performing advances to total advances 31.84 40.33 (8.49) Improved
performing advances to total advances 92.43 85.19 7.24 Improved
Analysis of Advances
Textile sector advance to total advances 35.63%
Chemical and pharma ceutical 3.37%
Credit exposure in Government Sector 25.49%

105
During my two internship in United Bank Limited. I get some

knowledge about banking system. Here, I deeply observed the
functioning of the branch. In the light of these observations, I suggest
the following recommendations for further progress of the Aziz Bhatti
road branch, sheikhuipura.These suggestions are:
1) Branch Premises
Branch working environment should be improve and renovated
with latest furniture and interior decoration. External look of the
branch is not seemed to be attractive so it should be clean and
well designed. Sufficient seating arrangements for customer is
not available here, so sufficient service area and seating
arrangements must be provided for customers.
2) Staff Behavior
Staff behavior in term of customer dealing should be uniform for
all customers, without any favoritism and nepotism that
discourage the other client.
3) Lengthy Procedure
The book keeping system and filling system of the bank is so
lengthy and time taking. So staff’s document processing time,
should be reduced to improve working efficiency through proper
training.

106
4) Proper Check
During two months of my training, I feel that their cheques
payment service and other bills receiving service is very slow, in
this way they deliberately waste the time of their customer.
Therefore, their should be a proper check of manager on them
so that then can recognize and understand their responsibilities.
5) To Be Conscientious
It is usually observed that staff members waste lot of valuable
time while performing their duties. During my training period, I
feel that all staff members make a lot of unnecessary telephone
calls to their relatives while dealing with their customers. In this
way they not only waste a very precious time of their customers,
but also waste the wealth of the country. So I feel that staff
members are very irresponsible in performing their duties. So,
staff member should be conscientious.
6) No Proper Security System
During my training, I feel that security system to safeguard the
cash deposits of bank is not book. The gunman of the bank is
often busy in doing some irrelevant job. So bank should take
steps to improve its security system.
Other Suggestions
 New blood should be injected and young professionals should be

recruited on merit to induce enthusiasm in the bank. Customers
should be focus of all activities to boost up the business.
 New marketing strategies should be developed to attract new

customers.
 Maximum automated machines should be used.

107
 Security should be strengthening to minimize the chances of

“decaties”.
 The workers should be given a sense of teamwork and the

manager should be trained to manage the team as good leader.
 There should be a proper check on staff member so that they

become punctual and conscientious.
 Business promotional activities should be increased to

enhance the business.

108

UBL Finance

Diunggah oleh

Informasi Dokumen

Deskripsi Asli:

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

UBL Finance

Diunggah oleh

Hak Cipta:

Format Tersedia

1

where you come first

Banking services are extremely important for both economy

First, by supplying customers with the basic mediums-of-

Second, by accepting money deposits from savers and then

Comprehensive Report on UBL

Benefits of banking for economy

The deposit and loan services provided by banks benefit an

Second, loans enable consumers to improve their standard of

Third, loans help businesses finance plant expansion and

Finally, since banks want loans repaid, banks choose borrowers

Comprehensive Report on UBL

BANKING INDUSTRY IN PAKISTAN

After the emerging of Pakistan our entire Banking System

In 1947, in Pakistan there is only two Muslim Banks, namely,

Till the end of 1980s, Pakistan’s banking sector was heavily

Comprehensive Report on UBL

Furthermore, interest rate deregulation, abolition of credit

The market for banks is diverse in Pakistan comprising nationalized

(NCBs), Private banks and foreign banks. In 1993, there were 33

During early 1990’s government encouraged private sector to

Comprehensive Report on UBL

History Of United Bank Limited (UBL)

The history of UBL can be divided into four main Phases

In June 1957, Mr. Agha Hassan Abidi decided to open a Bank

Comprehensive Report on UBL

As a policy of nationalization fourteen commercial banks was

UBL was the largest privatisation attempted by the government

Sale proceed was Rs 12350 million. This signaled the strong

Comprehensive Report on UBL

Today they bank has take progressive step.

Change the loge

The United Bank Limited (UBL) management has launched its

Now access your account from 71 cities across Pakistan. Our

9-5 Non-Stop Banking

Countrywide Instant Cheque Clearance

Comprehensive Report on UBL

Instant funds transfer

This is one of the easiest ways to remit money from USA to

This remittance facility has been started to facilitate

Consumer Banking. In UBL you get friendly, efficient and attentive

personalized banking services - a unique banking relationship

experienced by each UBL client. You can utilize the following

Comprehensive Report on UBL

• Personal Loan (Coming Soon)

• Credit Card (Coming soon)

Over view of UBL

 President & CEO

Comprehensive Report on UBL

 Offshore Banking Unit

Branches by specific functions

Function Number of branches

Comprehensive Report on UBL

Money Gram Branches 93

Comprehensive Report on UBL

Comprehensive Report on UBL

Mr. Nauman Hussain

Mrs. Rukhsana Asghar

Mr. Aameer Karachiwalla

Mr. Muhammad Ejazuddin

Mr. Mansoor M. Khan

Comprehensive Report on UBL