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Project Report on United Bank Limited

Naseera Branch Kharian Project Advisor: Group Name: Submitted By Mohammad hanif Sana Asgher 09021920-092 Syed Ali Abdullah Mehboob Angels

Maria shehzadi Mohammad Adnan Asim Cheema 09011920-056

MBA ( c ) evening

(First Semester)

University Of Gujrat

Project Report on UBL

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Acknowledgements
By the Grace of Almighty Allah and with the cooperation of entire staff of the branch specifically Branch Manager Mr. Raja Tariq, helped us well enough to prepare this entire report and Sir Ali Abdullah Mehboob, who guided us each step in preparation of this report.

Project Report on UBL

Where you come first

Table of contents

History

organizational structure

vision and mission statment

management process

swot analysis and suggestions

conclusion

Project Report on UBL

Where you come first

HISTORY OF UNITED BANK LIMITED

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 Chandigarh 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 Abebi 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. 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. UBL was the largest privatization 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 Best way 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.

Project Report on UBL

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SENIOR MANAGEMENT OF UNITED BANK IMITED

SHIEKH NAHAN MUBARIK CHAIRMAN

M. ANWAR PERVAIZ
DEPUTY CHAIRMAN

AMAR ZAFAR KHAN PRESEDENT

M.A MANNA
DEPUTY CEO

NUMAN HUSSAIN
Director operation and utility

RISHA HAMAYUDIN
Global treasurer

SHAHID WAQAR MEHMOOD

Head of commercial bank

KHALID MANAWAR
Head credit policy supervision

SHYHERYAR AHMED
Head investment banking group

M. EJAZ-UD- DIN
Audit chief

AMMAN AZIZ
Head international operation Dubai

MANSOR KHAN
Head operation banking group

RUKHSANA ASGHER
Global head human resources

RICC AAR REEMA ARAR

Chief financial officer

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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 Le

Project Report on UBL

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ORGANIZATIONAL HIERARCHY

Chairman

Deputy Chairman

President & C.E.O Regional Cheif Executive Senior Relationsh ip Manager (S.R.M)
Relationship Manager(R.M) Hub Branch Manager Area Operation Manager Area Manager (A.M)

Regional Operations Head(R.O.H)

Branch Manager Coordinator Unit Head

Regional Agri Manager(R.A.M)

Area Operation Manager

Relationship Associate(R.A)

Commercial Officers

Busieness Dev. Officer(B.D.O)

Hub Branch Operations Manager

Branch Operations Manager

Commercial Officers

Officer Coordinator

Data Supervisor

Supervisor Cash

Supervisor Funds Transfer

Supervisor Customer Services

Hub E-Coordinator

Supervisor

Data Input

Cash Officers

Cashier

Outsourced Cash Officers(OCOs)

Cashiers

Cash Officer

Outsourced Cash Officers(OCOs)

Project Report on UBL

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ORGANIZATIONAL STRUCTURE

BOARDS OF DIRECTORS

PRESEDENT

VICE PRESEDENT

REGIONAL CHIEF

DISTRICT MANAGER

MANAGER

OPERATION MANAGER

OFFICERS

CLERICAL STAFF

Project Report on UBL

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Vision

To be the first choice investment solution provider Added value and innovative service

Renowned for quality

Affordable cost to our custmer

Mission

Offer value added services and products Attract, develop and retain exceptional talent our passion for excelence and commitment to team work Listen carefully to our stake holders Highest level of ethical standreds Be a responsible corporate citizen

Core Values

Custmer focus

Excelance

Respect

Quality

Honesty

Annual

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PRODUCTS OF UBL
1: DEPOSITS
UBL business partner. Rupee transaction a/c. Basic banking a/c. UBL uniflex. UBL unisaver. UBL E transaction. Certificate of deposits. Regular term deposit receipts. FCY savings FCY term deposits

2: CARDS AND LOANS

UBL address UBL business line UBL cash line UBL drive UBL credit card

3: SERVICES
Signature Priority Banking. UBL Better Life Banc assurance. UBL Wiz. UBL net banking. UBL e-statement. Hamrah. UBL Wallet. Charity and Donations. Comments & Suggestions.

4: NRP SERVICES
UBL Click n Bank. UBL NRP Direct.

5: Home Remittance
UBL Click n Remit. Tez Raftaar. Tez Raftaar Cash.

Project Report on UBL

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MANAGEMENT PROCESS OF UBL

1: PLANING

2: ORGANIZING

3: LEADING

4: CONTROLING

Project Report on UBL

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PLANING
PLANING IN UBL Plans and goals of ubl are set by the upper level management and to achieve those goals, strategies are made by different departments, each department makes its own strategies, and R.O.H conveys the strategies of operational work. Strategies are given to the managers by R.O. strategies related to sales are given as targets to R.M and R.M conveys targets to D.M. Breadth plans 1: strategic plans Strategic plans which are applied to entire organization, like polices and methods of doing some work by circulars, These are conveyed through mail to each organization. E.g.: policy of issuing cheque book is implemented in entire organization through mail. 2: operational plans

Time frame plans 1: long term There are long term plans in ubl, which are made by the upper management. Currently UBL has the long term plan to be the NO 1 bank in the world, and many other plans like market expansion in future, in long term planning, yearly targets are given to the Branch Managers, and then these targets are further divided into monthly targets. 2: short term plans In short term plans, monthly targets are given to the each branch in the country, these plans are implemented by assigning duties to the Branch Managers to achieve the sales and deposit targets. Specificity

Project Report on UBL

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STRATEGIES
CORPORATE STRATEGY: The united bank limited is investing 70% of their resources in loans, credit cards, and invests their remaining 30% resources by unrelated diversification in leasing, Auto mobile, EFU insurance company, PSO , KFC and in agriculture sector. United bank limited has a stable environment; they are not going for growth by concentration, market expansion, or combining their business with their competitors. They are going for stable strategy. RENEWAL STRATEGY: Turn around: The new management has taken the following bold steps in restructuring the Bank and its operations. Successfully negotiated with SBP to inject PKR. 21 billion in tier 1 capital through rights issue.

Reduced staff by 5416 officers and executives, representing approx. 45% of the total number of officers and executives and reduced branches from over 1700 to less than 1375. Re-engineered the credit approval process. Moved the International Division to the UAE for better interface with international bank regulators (logistically speaking). Delayered reporting lines. Implemented an aggressive remedial management program. Instituted international financial reporting standards. Focused on rebuilding the customer franchise by segmentation of the business operations into corporate banking, Premier Consumer Banking, Core Consumer Banking and Human Resource Development. Instituted a broad-based recovery program. Converted Government Low Yield Assets into higher rate marked, to market instruments.

BUSINESS STRATEGY:

Competitive strategy When new banks and substitutes enters the market, then United bank limited to compete with such competitors, they extent the limits of credit cards, try to enhance the customer service, and try to adopt new technology.

E-Business Strategy UBL is adopting E-Business strategies by introducing the products and services by which customers can make transactions online. The examples of such products are E-Banking, Tezraftar (Cash over counter) and net banking. Innovation strategy UBL is an innovative organization, they always bring new innovations in banking industry, and the latest innovations of UBL are Wiz Card, Cash over Counter & Cashiers Check.

Customer service strategy UBL is a customer caring bank. Its slogan is Where You Come First. Improvement in consumer service and prompt attention to customer needs lie at the heart of UBL's promotional strategy. All planning is directed and geared to customer service and satisfying the client's diverse needs. The UBL of the past was renowned for its customer service and the management plans to put new life into it. To that end, training programs have been accelerated and upgraded and the staff is encouraged to revamp their skills.

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ORGANIZING
They are organizing UBL by

DEPARTMENTALIZATION United bank limited is a departmentalized organization. There is a proper department system in UBL. There are different departments in UBL. Following are the main departments of UBL.

DEPOSIT DEPARTMENT

LENDIND DEPARTMENT

CLEARING DEPARTMENT

CASH DEPARTMENT

RIMMITENCE DEPARTMENT

ACCOUNT DEPARTMENT

INTERNAL AUDIT DEPARTMENT

H.R DEPARTMENT

RISK REVIEW DEPARTMENT

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CHAIN OF COMMAND There is a proper chain of command in UBL, which shows the line of authority from upper organizational level to the lowest level, as it is shown in the organizational structure.

SPAN OF CONTROL

UNITY OF COMMAND Each employee in UBL is bound to follow the instruction of the immediate boss and they also report to their immediate boss. CENTRALIZATION 70% of the organization is centralized and remaining 30% is still decentralized. They are planning to completely centralize the organization in 2012.

FORMALIZATION UBL is a formalized organization, there are proper rules defined for doing job. These rules are given to employees in letter, when they are selected, and employees are bound to follow these rules. UBL is a mechanistic organization, its tightly controlled by the management, there is no adaptation and work is done by keeping in view circulars. UBL is a traditional organization. Where authority is centralized, wide span of control but there is high departmentalization.

Project Report on UBL

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LEADING
They lead united bank limited by

MOTIVATION: Employees in UBL are motivated, appraisal of each employee is made in which performance of each employee is elaborated, then on the basis of appraisal benefits and prizes are given, increment is given on salaries and promotion is also granted.

SELECTION OF EMPLOYEES: Following is the selection criteria of ubl, Basic qualification, ( graduation) C.V submission. From submitted C.V s in regional head quarter, a short list is made. ( eligible C.Vs) Initial interview is taken then C.V is forwarded to head office, KARACHI. On the basis of vacancies, selected people are called to regional head office, JEHLUM for written test. Interview is taken by the regional chief and by the H.R department. Medical is taken then after final interview, letters are issued to selected persons.

SURERVISION OF WORK: Operational work The operational work is checked through Audits, there are different Sales work Sales work is checked by District manager (after one month) Regional Business Head (R.B.H) by surprise visit They also check work through meetings. Centralized Audit, ( after one year) Compliance control assurance group ( C.C.A.G) after 3 months District customer service manager (D.C.S.M) once in a month. departments of audit.

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CONTROLLING
STANDARDS OF JOBS Monthly, half yearly or quarter yearly, targets are given to the employees, for which employees are bound to do work according to assigned targets, efficient working is required.

PERFORMANCE MEASUREMENT The performance of employees is measured by the monthly given targets to employees, reward, bonuses, increment in salaries and promotion is given after measuring the performance. If an employee performs according to the set standards, then he will be rewarded. If job is not done according to the set standards, and given targets are not achieved by the employees, then they may be degrade from their post, and even a MANAGER could be thrown down to a cashier post.

FEEDBACK CONTROLS Employees from different branches gather the feedback from customers about any of their new product, then they give these feedbacks to Area office, then feedbacks are forwarded to HEAD OFFICE. TRAINING OF EMPLOYEES The training center of UBL is there in ISLAMABAD. When new product is launched, then the necessary training is given to the employees, and in case of selection of new employees, one month basic training is given to new employees.

Project Report on UBL

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SWOT ANALYSIS
STRENGTHS UBL is currently at number 3 in Pakistan. They have their own software called uni- bank system It is one of the largest private banks with a deposit base of Rs. 94883/- millions showing constant growth over the period from 1999 till the day. It has a well-knitted and adequately equipped branch networking system that Efficiently covers both the domestic and international markets. It is involved in both corporate and retail banking. UBL is actively participating in international markets and has recently introduced Credit cards in UAE, Bahrain, and Qatar, being backed up by 24 hours call center Out of UAE. The bank is run by highly professional recruited from and trained by foreign Banks like Citi Bank. UBL is an innovative organization, it always bring innovations to facilitate its customers. UBL has set up a Business Risk Review Department to monitor risk management processes within the bank. UBL has also acquired a new consumer banking software FAIRIZER - comprising 3 separate systems, one system each for consumer banking, credit initiation & recovery.

WEAKNESSES

Employees are not well grooming as compare to other modern commercial banks.
Some process becomes late due to UBL centralization.

Due to risks such as political, economic and legal etc the bank has suffered losses. The main reason was that of piling up of large amount of unrecoverable loans and debts which has adversely affected the image of the UBL. Accumulated losses pushed the bank to cut down its promotional activities in order to reduce expenses for last few years. Promotions are carried out on annual basis ignoring the importance of capabilities and performance output. The bank has large number of employees who are simple graduates with no banking knowledge Ineffective system of recruiting and selection. Lengthy credit processing and documentation procedures. Unsatisfactory working conditions. The promotion of UBL employees almost depends on bringing of deposits respectively

OPPERTUNITIES Foreign remittances are another area as present worldwide control systems over Transfer of currencies through illegal channels has facilitated the area for the banks. Expansion of IT platform and internet based banking system. Interest of businesses in leasing facilities provides a healthy opportunity for Banks There is a large pool of unemployed MBAs who can be hired to achieve professionalism on its organizational culture Outsourcing of promotional companies or use of available excellent promotional facilities. Entering new market segments. Increase the product range to meet the broader range of customers needs.

THREATS Increase in competition due to increasing number of foreign and domestic private banks offering highly specialized and attractive services. Growing global technological advancements and adaptation of modern style of, Management in banking sectors. Extensive promotion campaigns run by competitors. Unemployment, lower level of income and prices like problems in the motherland coupled with low rate of industrialization, geo political adverse conditions, religious factor, lack of consistency in policies due to political instability are some of the other major threats.

Project Report on UBL

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SUGGESTIONS
At the end of every report, it needs suggestions and recommendations. According to our judgment the following are the suggestions and recommendations. Feedback is not given to the management in time due to centralization. Same old methods are used in UBL, they should use new methods to increase the efficiency of employees. Some authorities should be given to the lower management to save the time of customers. The proportion of performance related work should be more than the proportion of deposits in promotions. It should be necessary for the UBL that for the old employees training session for well grooming, because even they dont know that how to deal with new technology. Working condition should be improved in UBL. 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. 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. It is usually observed that staff members waste lot of valuable time while performing their duties.

CONCLUSION
It has been a great learning for us during this project, we learnt a lot about management, and it will help us in our career. During this project, We learnt, that how to deal with professionals, We learnt a lot about banking sector and their management system. We learnt that, how they PLAN, ORGANIZE, LEAD and CONTROL this organization in all over Pakistan while sitting in an office. We learnt that how plans are made in UBL and how they make it possible to implement all these plans in every branch of country, We learnt that, how they organize each department, and how they are leading and controlling UBL. This organization is well managed with organized structure and efficient employees. Due to its growth in online branch system, it has bright future in Financial Organizations.

Project Report on UBL