INTERNSHIP REPORT

on

UBL
Submitted by
Sidra Noor
Roll #14
BPA (Morning)
Session:2012-2016

Institute of Social Sciences

Bahauddin Zakariya
University
Multan

Dedication
I dedicate this work of mine to my Teachers, My Parents
and to all My Friends, who truly help and guide me to
complete this project

ACKNOWLEDGMENT
First of all, I thank my respected teachers for providing
me comprehensive knowledge about Commerce Courses
and also for providing me the opportunity to complete
my Internship Program in UBL to enhance my practical
knowledge about banking sector of Pakistan. I am also
indebted to the followings because without their help, I
would not be able to achieve this practical knowledge

EXECUTIVE SUMMARY
This is an internship report regarding the different products
of UBL .It starts with an introduction about Banking followed by
the introduction of UBL. It gives a briefing about all the financial
products of UBL. This report also includes the different features of
these products. All the Services provided by UBL has also been
discussed and explained along with the strength and
weaknesses of the organization .This report shows and internal
architecture of the working of the UBLs Business. It gives a detail
about the supporting department that has helped the business in
their daily working .Also it discusses the objectives, policies of
the organization. There are also some
suggestions/recommendations for UBL

TABLE OF CONTENTS
1.
2.
3.
4.
5.

Purpose of study
Scope of study
Limitation of study
Methodology of study
Scheme report

CHAPTER # 1INTRODUCTION TO THE REPORT

1.1INTRODUCTION:
Students of M.Com studying courses leading to Master degree inC
ommerce are required to undergo an internship programme of tw
omonths duration. This is an essential academic requirement. The
internship followed by comprehensive report writing, required to
submit to there search and development division (R&DD) of
Quaid-e-Azam College Of Commerce, Peshawar. This report is
properly evaluated on the basis of its description and analytical
capabilities by internal and external examiners. I did my
internship in United Bank Limited Nowshera Cantt Branch.
PURPOSE OF STUDY:
The purpose of the study is to work in real life situation and learn
banking practice by doing. In this context its objectives are:
1: To analyze banking operations i.e. operational analysis,
financial analysis
2: To develop concrete and feasible recommendations.
3. To improve report writing skills.
SCOPE OF STUDY:
The study is confined to banking operations. An attempt, along
with all its limitations, to collect financial data and general
statistics of the bank has been made. Keeping in view the purpose
of the study, which is to make
anacquaintance with practical doings in the bank, this seems aco
mprehensive effort.
LIMITATION OF STUDY:
It is to admit that the study attempts only those aspects, which
are closely relevant to the purpose of the study. facts and figures,
which
otherwisemight be equally important, but not having a direct bear
ing on theconclusions arrived at this study, have been ignored
.The most important limitation from which the study suffers is the
non-availability of information in a manner required for analysis a

nd thesecrecy of the bank. Another important limitation of the

study is time and space constraint.
METHODOLOGY OF STUDY:
Both primary and secondary data were used in compilation of the
report. Methodological tools used were:
1: Primary Data:
Personal Observations.
Discussion with Bank Personnel.
ii. Secondary Data:
Brochures/ Manuals of the bank

CHAPTER # 2
INTRODUCTION TO UBL
BANKING HISTORY:
Consensus on the origination of word Bank is not yet reached at.
Someauthors opinion is that this word is derived from the words Bancus or Banqu
e, which mean a bench and they further relate banking business inception to Jews
in Lombardy. Other authorities state that the word Bank is derived from the
German word Back which means Joint Stock fund and later on due to German
occupation of Italy, this word was Italianated into Bank. Authors quote Babylonians
(few quotes Chinese) who developed banking system as early as2000. B.
BANKING IN PAKISTAN:
Banking started in Pakistan after the bold and emergent
decision of formulation of SBP on July 30, 1948. Thereafter this sector has witnessed
enormous growth. In 1974 banks were nationalized, in the hope that new era
of growth could be achieved through it. However the process is reverse since
1991,up till now MCB, ABL, and UBL have been privatized and HBL is in the process
of its privatization.
BIRTH OF UBL:
On November 9, 1959, UBL was notified and included as a privateschedule bank
with authorized capital of Rs. 20 million; issued and paid up capital of Rs. 10 million
divided into 1 million shares of Rs. 10/ each. Currently BO Dand president/ CEO Mr.
Amar Zafar Khan being a member of this newly formed
set up manage UBL. Chairman His
Highness Shaikh Nahayan Mabarak Al Nahayan and Deputy Chairman Sir Mohamme
d Anwar Pervez are the twosupreme controllers of the banks affairs. Another
development is the appointment of director operation, Nauman Hussain by the
newly privatized bank. Senior management of the bank is shown in the chart
given at the end of chapter.
NUMBER OF BRANCHS:
UBL has a large network of branches, which extends to the remotest areas of the
country. In December 1983, there were 1623 branches whereas in 1974 ithad only
1238 branches and in October 2003 these figures show total number of 1007
branches. UBL has been very active in increasing its overseas branches network.
Thefirst foreign branches were established in London in 1963. Now UBL has branche
s in Bahrain, Qatar, Saudi Arabia, United Arab Emirates, Yemen Arab Republic, UK
Switzerland, Egypt, Oman and The United States. These branch esare playing a
significant role in channeling home remittances and foreign trade of Pakistan.
SUBSIDIARIES:

UBL has four subsidiaries, namely

United National Bank Limited (UNB), UK
United Bank AG (Zurich), Switzerland
United Executers and trustees Company Limited
United Bank Financial Services (Private) Limited
FUNCTIONS OF UBL:
UBL is a commercial bank, which transacts the business of banking in accordance
with the provisions of BCO, 1962. Section 7 of the Act authorizes banks to engage in
the prescribed form of business. In the light of this section UBLs functions can be
categorized as under:
Agency services
General Utility Services
Underwriting of loans raised by the Government or public bodies and trading by
corporations etc.
Providing specialized services to customers, and
Hajj-related services.
2.8ROLE OF UBL BANKING SECTOR:
The impressive growth and development, which UBL achieve, present it
undoubtedly the most dynamic and progressive. In a very shorter period of time
it became one of the leading banks overtaking several other older and its
competitor banks
4. The major contributions
5 .The bank ahs made are enlisted below:
Record setting performance and commitment to serve the customers
Personalized service and dynamic approach
Catalyst of changes
4 Professional management
Modern banking policy
Human resource development
Small loans (or) micro credits
Utility bills collection
Credit cards (unicard-1970)

Travelers Cheques (Humarah-1971)

Diaries and calendars received prizes too
Promotion of sports

COMPUTERIZATION OF UBL: UBL has taken leading start in the intr6in important
cities. Its three computers centers Rawalpindi, Lahore
andKarachi are equipped with the modern mainframe computers of variouscapacitie
s. Every branch has been decorated with microcomputers. The use of computers
has enabled the bank to save time and efforts, raise efficiency and deliver the
goods speedily to its customers. This has also allowed the bank to maintain its
leadership within the industry.
UBL - On line System
Themes of this service is Access anytime, anywhere, any device which symbolizes
comfort, convince and connectivity. UB-Online a web based service
Cap. (Rtd) Syed Hamid Ali Shah, (2002) Internship Report On UBL Main Branch
Peshawar. IMS.
UBL, (October 8, 2002). PPI Circular. Karachi
that can be accessed through multiple media link like, (i) PC via internet (00)Mobile
phone with WAP or free SMS) (iii) Personal Digital (iv) assistants and (v)Plain
telephone; following are some of the exciting features:
Accounts statement & electronic data interchange
Graphical analysis
Alerts service /facility, search facility and activity long
The banks as another computer-based system known as UIBANK
Which is a well-develop on-line branch-banking package.
The systemautomatically prepares various report, central bank returns,
andstatement of accounts for customers.
Money Gram facility:
The bank has recently employed money gram service system, which can affect
money transfers within minutes. Similarly the system used for local transfer of
money transactions is called uni-remote.
Hajj service:
Keeping to its tradition is august 1982 provided electronic facility at
itsHajj booth and has installed now modern computers at designated branches(Hajis
) and increasing efficiency. This facility has reduced the service time to less than six
minutes per Haji compare to about half-an-hour to 45 minutes per Haji earlier

VISION & MISSION

Vision Statement
To be the leading financial services provider, partnering with our customers for a
more prosperous and secure future

Mission Statement
We are a team of committed professionals, providing innovative and efficient
financial solutions to create and nurture long-term relationships with our customers.
In doing so, we ensure that our shareholders can invest with confidence in us.

Strategic Objectives

Delivering remarkable returns to stakeholders, sustainable performance,

exceeding market and shareholder expectations
Providing value added services through operational expansion, geography
and upgraded systems.
Building a corporate culture of equality, trust and team spirit as we remain
dedicated to be a socially responsible organization

Core Values

Integrity
We are the trustees of public funds and serve our community with integrity.
We believe in being the best at always doing the right thing. We deliver on
our responsibilities and commitments to our customers as well as our
colleagues.
Innovation
We encourage and reward people who challenge the status quo and think
beyond the boundaries of the conventional. Our teams work together for the
smooth and efficient implementation of ideas and initiatives.
Excellence
We take personal responsibility for our role as leaders in pursuit of excellence.
We are a performance driven, result oriented organization where merit is the
only criterion for reward.
Customer
Our customers are at the heart of everything we do. We thrive on the
challenge of
understanding their needs and aspirations, both

realized and unrealized. We make every effort to exceed customer

expectations through superior services and solution
. Respect
We respect our customers values, beliefs, culture and history. We value the
equality of gender and diversity of experience and education that our
employees bring with them. We create an environment where each individual
is enabled to succeed.

Functional Heorarchy
Functionl heirarchy of UBL

Branch Structure

CASH, REMITTENCES, CREDIT & CLEARING

DEPARTMENTS:
DEPOSITE DEPARTEMNT
As per the definition of Banking under see 5(b) of BCO 1992 one
of the main functions of a bank is to accept deposit. Deposits are
the backbone of any bank other functions of the bank primarily
depend upon the type and size of deposits.
Function perfumed by cash and deposit department in UBL

UBL accepts deposits under the following three

accounts.i.Current accountii.PLS Saving accountiii.Terms Deposits
Opening of Account:
To open an account in UBL the customer will have to fill an
account opening form in front of bank officer. He has to sign in all
required places in front of the officer.
Documents Required in Account Opening:
i. N.I.C Copy.
ii. Account opening form (provided by bank)
iii. Two photograph (in case of illiterate person)
iv. Specimen Signature card (Provided By Bank)v. Cheque
Types of Account: Individual Account
In this account a single customer operates the account. The
banker will run the account according to the rules, but if the
customer gives special instructions the Bank will have to follow it.
b. Joint account:

In this type of account two or more than two persons will open
theaccount. The account will be operated by one account holder
in case of (either of the survival). If the instructions are not given,
all the account holders will have tosign the check.
NATURE OF ACCOUNTS IN UBL
A) Current Account:
These are non-profitable demand accounts. The account can be
opened with minimum amount of rupees 1000/-. These account
are usually maintained for business purpose. Due to enormous
competition UBL has introduced daily
profitcurrent account for corporate clients called (UNISEVER) mini
mum balancerequired is Rs. 100,000/-. If minimum balance
requirement is not met, bank is authorized to recover
predetermined charges.
B) PLS Saving Account
These accounts were intended with the aim of encouraging thrift
among
people.These accounts can be opened either in Pakistani rupees o
r in few major currencies of the world. Bank offers (4%- 6%) return
on these accounts. The basic feature is the profit and loss sharing
as according to non-interest based banking system. These
accounts can be opened in the name of; individuals, joint
names ,trust accounts, charitable organizations
Requisition Formvi . Introduction of Account.
Unlike current accounts, Zakat is applicable on local currency
saving accounts. Minors accounts can be opened on the condition
that their guardians shall operate these accounts.
C) Term Deposits:
Term deposits are also called fixed deposits. These can be with
drawn after a specified period of time. Interest is paid to the
depositor on all fixed or term deposits. The rate of return varies

with the duration for which the amount is kept with bank There
are two types of term deposits.
STDRS Special Term Deposit Receipt (local currency):
Special Term Deposit Receipts are issued for different periods of
maturity ranging from one month to 5 years, having attractive
returns. There is no limitation denominations.

NTDRs Notice Term Deposit Receipt (local currency):

These are term deposit with special features that these can be
withdrawn anytime but after giving a predetermined and pre
agreed early notice.
REMITANCES DEPARTEMNT:
Current business trends demand fast movement from one geographic end to another. Latest technology and telecom data
transmission has made it possible to make such transactions with
in minutes. UBL Remittances Department performs following
functions.
Demand draft (D.D)
D.D is a negotiable instrument issued by branch of the bank
drawn on other branch of the same bank
A) Procedure For D.D.:
Purchaser is asked to fill in an application form duly singed by
applicant. Three things should be maintained in the form.
Name of Payment
Place of payment
Amount of D.D Commission is charged on D.D as bank income.
The applicant is asked to deposit the cash specified on the
application form to the teller. After depositing cash there
mittances incharge prepare a D.D. That is singed by two officers

must having power of attorney .Bank also provides this facility to

general public who dont have account in UBL. They will have to
submit a N.I.C copy along with D.D application form.
Telegraphic transfer (T.T):
Transfer of funds to another branch of the same bank with the
help of test numbers. If the test number agrees the bank make
payment to the party.
A) Procedure for T.T:
The procedure for T.T is same as D.D. But in D.D it is given on a
printed-paper and singed by two officers but, in T.T, only test
number is given to the customer.
Mail Transfer (MT)
When the money is not required immediately, the remittances can
also be made by MT. Here the selling officer of the bank sends
instructions in writing by mail to the paying bank for the payment
of a specified amount of money. The payment under transfer is
made by debiting the buyers account at the sending office and
crediting it the recipients account at the paying bank. UBL takes
mail charges from the applicant where no excise duty is charge
CREDIT DEPARTMENT OF UBL
General
Credit extension is the principal function of a bank, through which
pace of activity is accelerated in the various sectors of economy.
Also the indicators ,which mainly reflect the high quality of banks
management, are its prudent financing decisions, proper control
of finance and prompt recovery. In this regard the credit policy of
a bank play a very important role as it provides the
overallframework, responsibilities, authorities and facilitate decisi
on-making. Creditdepartment performance is subject to a defined
policy on credit control exercised by the SBP. SBP affect credit
decisions through the weapons of bank rate, open market

operations, variable reserve requirements, selective credit

restrictions and prudential regulations.
UBL Credit Policy:
Credits operations are undertaken in accordance to banks credit
policy. The policy strictly prohibits violation of SBP/Local central
banks rules and
suggestfinancing of self liquidating, cash flow supported and well
collateralizedtransactions, which equate the principle of lending
(safety, liquidity, dispersal, remunerations and suitability).
CREDIT DEPARTMENT OF UBL NOWSHERRA BRANCH
Facilities offered by UBL
Running Finance (for one year)
Demand Finance (3to 5 years)
Procedure for Financing from UBL
When a party comes for financing, banker will ask the following
question
Purpose
Business
Security
CLEARING OF BILLS
Bank can make payment for only open Cheques for the counter
payment. Payment of cross Cheques cannot be made on counter
its payment its payment is possible though collecting bankers The
functions of clearing department is divided into two main classes.
Inter Branch Transaction
Inter Bank Transaction

Financial Analysis
The user of financial statements finds it helpful to calculate
ratios when they interpret companys financial statements. A
financial ratio is simply one quantity divided by another.
Ratios focus on special relationship between two items of
balance sheet, income statement or one from each. Ratios
make it easier to understand a specific relationship between
various items of financial statements then looking simply at
the raw numbers themselves. The number of financial ratios
that might be created is virtually limitless, but there are
certain basic ratios that are frequently used, these ratios can
be placed into six different classes.
Liquidity Ratio
Asset Turnover Ratio
Leverage Ratios
Coverage Ratios
Profitability Ratios
Market Value RatiosThe calculation and interpretation of
these ratios of financial statements of UBL are following

During my internship period in UBL, in various departments, I noticed following

departmental problems.
Cash Department:
o

o
o

Not very frequently but there are instances of fake currency notes,
being identified. At times
notes received from other branches we
refound to have certain fake currency notes.
Counting mistakes occur due to overcrowding particularly during the
collection of utility bills. Manual counting system also affects efficiency
of the bank.
Code of conduct of cashiers is found unsatisfactory
There is generally the lacking in observing and practicing banks
relevant procedures and SOPs

Deposit Department:
i.
ii.

iii.

Newly designed AOF has an inbuilt deficiency of restricted space and

cannot accommodate more than two names.
.Identification of customers signature is very important particularly when
cash is to be withdrawn by him. Manual practices pose problems in those
branches where automation has not been done yet.
In cases where the presence of customer himself is must, is sometime
compromised due to influences of\r fear of loss of customer.

Clearing Department:
i.
ii.
iii.

Wrong endorsement and stamping causes loss to the customers and extra
efforts for the bank to repeat the procedures.
Reasons for the return of the cheques at times are not mentioned on there
turn memos.
.At times due to lack of training wrong stamps are applied on instruments.

Credit Department:
i.
ii.

iii.

Timelines in cash disbursement is very important which is compromised

due to lengthy processing and documentation requirements.
Relationship Managers need to be fully equipped with the requisite
knowledge and skills as presently plain BA/B.Sc qualified individuals are
performing jobs of MBAs.
Lack of infrastructure for carrying out computerized financial analysis of
borrowers business

Bills Department:
i.
ii.
iii.

Bills are sent to other cities; therefore, extra care should be exercised
inmaking entries and stamp affixing.
.Proper scrutiny at times is not carried out and it causes loss to the bank
or increase procedural timings.
Employees at times mismanage their time and fail to forward bills
promptly.

Forigon exchange department

Problems of bills and remittances departments equally apply to foreign exchange
department. There is overlapping of functions and complete separation of function
has not been achieved thus leading to a state of confusion and conflict among
employees.
i.
ii.
iii.

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

.Knowledge and educational background of employees working in this
department do not match with the job they are doing.
.Most of the employees of this department lack the ability to handle the
Letters of Credit

RECOMMENDATIONS
Recommendations are considered to be the most important
part of an internship report, without which no report is
considered complete and meaningful. This part of the report
is based on the previous sections i.e. review and analysis.
Moreover, for bringing suggestions, discussions have been
conducted with the staff of UBL officers, who not only
provided the basis for recommendations but also pointed out
some areas, where the change for the development is
utmost important .Realizing the importance of this section,
efforts have been made to give feasible recommendations,