Submitted To:

Suhail Afzal Qureshi

Assistant Professor
Submitted By:
Muhammad Umair Safder
SP14-BAF-008
23-December-17

COMSATS Road off GT road, Comsats

University Rd, Sahiwal

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 ACKNOWLEDGEMENT
First of all I thank Allah, who is the holder of my breaths, without his order nothing
impossible. I am highly thankful to my respectable teachers and friends and family members
who were my supporter throughout my educational career, further I thank all the
employees of the branch United Bank Limited, where I have done my internship. I have set
light, an ever-burning flame of gratitude and deep sense of obligation to my honorable
teachers for their valuable guidance, constructive criticism and inspiring attitude
during my studies.
Apart from the efforts of me, the success and completion of any work depends largely on the
encouragement and guidelines of many others. I take this opportunity to express my gratitude
to the people who have been instrumental in the successful completion of my internship and
internship report.

I would like to show my greatest appreciation to my internship supervisor at the institute Mr.
Suhail Afzal Qureshi and internship supervisor in UBL where I completed my internship. I
can’t say thank you enough for their tremendous support and help. I feel motivated and
encouraged every time as they helped me and guided me whenever I needed. Without the
encouragement and constant guidance I would not have been able to learn a lot and complete
my internship and internship report.

The guidance and support received from both of my supervisors, was vital for the success of
my internship and internship report. I am grateful for their constant support and help.

Last words are lacking to express my feelings and indebtedness to my affectionate Family
and Friends for their love, appreciations, which always stand by me mentally and spiritually
during all years of my study.

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Table of Contents Page No.

1. Executive Summary………………………………………………………………………4

2. Overview of the Organization…………….………………………………..…………….5

2.1.1 Brief History of UBL………………….…………………………………………...….5

2.1.2 Branches of UBL…………………………………………………………………...….6

2.1.3 Major Competitors………………………………………………………………….6

2.1 Strategic Orientation…………………………………………………………………..7

2.2.1 Vision…………………………………………………………………………………..7

2.2.2 Mission............................................................................................................................7

2.2.3 Objectives……………………………………………………………………………...7

2.2.4 Core Values....................................................................................................................8

3. Business Operations and Implementation………………………….…………………...8

3.1 Organizational Structure of the Branch…………………...………………………….8

3.1.1 Organizational Hierarchy…………………………………………………………….8

3.1.2 Number of Employees…………………………………..………………………….11

3.1.3 Introduction Of All The Departments…………………………………………….11

3.2 Structure Of The Accounts And Finance Department……………………………..16

3.2.1 Department Hierarchy……………………………………………………………….17

3.2.2 Finance and Accounting Operations………………………………………………...17

3.3 Financial Statement Analysis…………………………………………………………..18

3.3.1 Common Size Analysis (Horizontal and Vertical)………………………………….18

3.3.2 Ratio Analysis…………………………………………………………………………19

3.2.2.1 Liquidity Ratios………………………………………………………………......…19

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3.3.2.2 Market Ratios…………………………………………............................................21`

3.3.2.3 Activity Ratios………………………………………………………………………22

3.3.2.4 Profitability Ratio…………………………………………………………………..24

3.4 Case Study………………………………………………………………………………28

3.5 Policy Recommendation………………………………………………………………..29

4 Learning As A Student Intern………………………………………………………..30

4.1 Duties…………………………………………………………………………………30
4.2 Accomplishments…………………………………………………………………….30

4.3 New Knowledge Acquired…………………………………………………………..31

4.4 Skills Recommended………………………………………………………………...31

4.5 Problems Encountered By Internee……………………………………………..…32

4.6 How Experience Impacts On My Career………………………………………….32

5 Need Introduce Friendly Products…………………………………………….…33

Figure No…………………………………………………………………….

Figure no 1…………………………………………………………………………………9

Figure no 2…………………………………………………………………………………14

Figure no 3…………………………………………………………………………………17

Graph no………………………………………………………………………

Graph no 1…………………………………………………………………………………20

Graph no 2………………………………………………………………………………….21

Graph no 3………………………………………………………………………………….21

Graph no 4………………………………………………………………………………….22

Graph no 5……………………………………………………………………………….....23

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Graph no 6………………………………………………………………………………….23

Graph no 7………………………………………………………………………………….24

Graph no 8………………………………………………………………………………….24

Graph no 9 …………………………………………………………………………………25

Graph no 10………………………………………………………………………………...26

Graph no 11………………………………………………………………………………...27

Graph no 12………………………………………………………………………………...27

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1. Executive Summary

Banking is one of the most important sectors in any country’s economy. The role played by
banks in strengthening a country’s outlook for investors is in one way aided by the banks.
The report that I have compiled starts with the brief history of bank and an introduction about
the bank. A little information about UBL is also given as well.
Bank’s management structure has been described as well. All relevant people name have
been given. The hierarchy at branch level as well as at organization level is also drawn. A
brief view of all the operations at branch level has been discussed. I have also highlighted the
work that I have done in the period of eight weeks with UBL. My observation as well as my
experience.
There are a number of different banks established in Pakistan, including local incorporated
commercial banks, foreign incorporated commercial banks, development financial
institutions, investment banks, discount & guarantee houses, housing finance companies,
venture capital companies, micro finance banks and Islamic banks.
UBL, a commercial bank was established in 1959 as result of reckless efforts made by Agha
Hassan Abidi. The UBL has shown the fastest growth pattern and in a period of just 27 years
became the second largest bank of Pakistan. The bank image however adversely destroyed
when it suffered heavy losses during its nationalization period due to political and other
factors. The bank is showing re-emerging indications as is evident from its financial
statements. UBL on October 19, 2002 was privatized and bought by two financially sound
parties of international repute i.e. best way group and Abu Dhabi group holding 51% of the
banks share and thus has emerged as the largest private bank surpassing MCB.
The purpose of this report is to study operations and analyze performance of UBL to see
whether the bank is successful in its operational performance or not, and recommending
possible solutions for problems. For meeting the purpose both secondary and primary data
have been used.

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2. Overview of the Organization

2.1.1 Brief History of UBL:

It begun with a vision, a vision of unparallel progress and unparalleled excellence true to the
strength of the era! November 7th 1959, Pakistan witnessed an event that would change the
way we banked evermore. It was not just the appointment of UBL’s first branch at I.I.
Chundrigar; it was also the birth of the culture of service, a culture of innovation and a
culture of financial excellence!

In 1963, UBL became the first bank in Pakistan to have a branch overseas- on William Street
in London, United Kingdom. True to our promise of providing service and care beyond the
ordinary to our customers, UBL and You have had a history. The first saving scheme for
school going children was launched as early as 1960 or the formation of Pakistan’s first Staff
College of employees in 1964, UBL, through the motivation of its staff and the trust of its
customers, continued to grow at a spectacular pace. In 1967, UBL had hit the dawn on
information in terms of technology, by introducing computer banking to Pakistan and in
1971, UBL once again paved the way by launching 3 online branches in Karachi. The newly
formed state of Pakistan was witnessing the boom of industries and commerce – cannoned by
a bank that believed in the potential growth of Pakistan. Small wonder then, by 1978, UBL
had a pledged economic department, had acquired two international banks. UBL also
launched supervised credit and small loan schemes for small to medium sized firms as well as
agriculture and had made for itself, a strong international presence for we had branches in 4
continents.

Throughout its history, UBL has kept pace with- and often exceeded the changing needs of
changing times. Keeping the tradition of innovation alive, UBL introduced Pakistan’s first
credit card, the UNICARD in 70’s and left its mark by launching the Pak Rupees traveler
cheques in 1971. Staying true to its roots, UBL was also the first bank to have an Islamic
banking division and the first to introduce e-banking facilities at Hajj.

In the 1990’s the government of Pakistan decided to change the face of banking by creating a
blueprint to privatize UBL. At this point, financial experts were called on board to set the
bank back on course, and with implementation of relevant changes, the government
privatized the bank in the year 2002 – Best way and Al Ayaan collaborated, forming the
cornerstone for the UBL of tomorrow.

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Today, UBL opens its eyes to a new vision every day, a vision of resurgent excellence and
renewed commitment to our customers. 52 years into our glorious history – UBL is now part
of one of the world’s largest financial services groups.

2.1.2 Branches of UBL:

UBL has a large network of branches, which extends to the remotest areas of the country.
They have now 1385 domestic Branches and 19 Overseas Branches in different countries.
The total revenue of year 2016 is ₨80.65 billion (US$760 million), total net income is
₨27.73 billion (US$260 million) and total assets is ₨1.62 trillion (US$15 billion). UBL has
been very active in increasing its overseas branches network. The first foreign branches were
established in London in 1963. Now UBL has branches in Bahrain, Qatar, Saudi Arabia,
United Arab Emirates, Yemen Arab Republic, UK Switzerland, Egypt, Oman and The United
States. These branches are playing a significant role in channeling home remittances and
foreign trade of Pakistan.

 Subsidiary
 UBL (UK) 55% owned.
 UBL fund Mangers limited (UBLFM) 98% owned.
 UBL AG. Zurich (Switzerland) established in 1968.
 UBL of Lebanon and Pakistan established in 1968.
 Joint Ventures:
 Commercial bank of Oman Limited (Mascot) established in 1982.
 United Saudi Commercial Bank Limited (Saudi Arabia) established in 1982
Competitors Strategies
Every organization is the competitor of other organization in the marketing
industry. But in banking, competitor is the one holds the stake, and which can
affect the internal customers, external customers, revenues, expenses and
execution of the company strategies.

2.1.3 Major Competitors

1. Bank-al-Habib Limited
2. Bank Alfalfa Limited
3. Bank of Khyber
4. Bank Islamic Pakistan Limited

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 5. Dawood Islamic Bank Pakistan Limited
6. Dubai Islamic Bank Pakistan Limited
7. Sindh Bank
8. Faysal Bank Limited
9. Habib Bank Limited
10. Habib Metropolitan Bank
11. Kashf Microfinance Bank
12. JS Bank
13. KASB Bank
14. Mezzan Bank Limited
15. National Bank of Pakistan
16. NIB Bank Limited
2.2 Strategic Orientation

2.2.1 Vision

To be a world class bank dedicated to excellence, and to surpass the highest expectation of
our customer and all other stakeholders

2.2.2 Mission

 Be the undisputed leader in financial services for our customers

 Most innovative and fastest growing bank in targeted businesses
 Continue to diversify across chosen geographies
 Achieve operational excellence with the highest level of compliance
 Consistently create leaders through inspired human capital
 Contribute positively to the communities we operate in

2.2.3 Objectives

I worked as an internee in UBL. The main objectives to study in UBL were:

 To get some experience in working with well reputed organization.

 To gain knowledge about the professional environment of the bank.
 To know about the technology utilized in the banks.
 To deal and manage with the situation of stress.

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2.2.4 Core Values

 Customer Focus

 Respect

 Entrepreneurship

 Curiosity

 Excellence

 Teamwork

 Integrity & Trust

3. Business Operations and Implementation

3.1 Organizational structure of the branch

A well-developed and properly coordinate structure is an important requirement for the

success of asny organization. It provides the basic framework within which functions and
procedures are performed. Any organization needs a structure, which provides a framework
for successful operations. The operation of an organization involves a number of activities,
which are related to decision making, and communication of these decisions. These activities
must be well coordinated so that the goals of the organization are achieved successfully.

3.1.1 Organizational Hierarchy

Chairman

Deputy Chairman

Board of Directors

Executive Committee

Managing Director

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 SEVP

EVP

VP

Officer Grade-I

Non Clerical Clerical Officer Officer

Staff
Staff Grade-II Grade-III

Figure no. 1

Organizational Structure of UBL:

UBL also has a well defined formal organizational structure.UBL is a very vast organization.
In the organization set up of UBL, the highest ability rests with Board of Directors which
consists of Chairman, Deputy Chairman, President, & CEO and the directors. In which four
directors are from UBL, one from Pakistan Banking Council, one from Ministry of Finance
and one who is also the secretary of the board. So the Board of Directors is an eight member
team, and is liable for policy formulation and making important strategic decisions.

Board of Directors

1. Sir Mohammed Anwar parveez Chairman/ Non executive

director
2. Mr. Zameer Mohammed Choudrey, CBE Non-Executive Director
3. Mr. Haider Zameer Choudrey Non-Executive Director
4. Mr. Rizwan Pervez Non-Executive Director
5. Mr. Arshad Ahmad Mir Non-Executive Director
6. Mr. Khalid Ahmad Sherwani Independent Director

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 7. Amar Zafar Khan Independent Director
8. Tariq Rashid Independent Director
9. Ms. Sima Kamil President & CEO

The authority, which is second highest, lies with executive committee. It consists of seven
members, including the president and secretaries are in charge of divisions. The members are
Senior Executive Vice President of UBL. There are twenty divisions, which have their own
Senior Executive Vice President (SEVT). Executive Vice President (EVP), or Senior Vice
President (SVP), the SEVP to international divisions manages the operations of foreign
countries branches. At the National level, UBL has a network of branches spread all over the
country and its field operations are one of the most extensive among the leading banks in
Pakistan. At provincial level the bank is managed by SEVP, who is assisted by General
Manager (OM), who is EVP or SEVP. The OM is responsible for either a number of regional
areas or in charge of various provincial departments such as Administration, General
Recovery, Loans, Inspection, etc. The complexity and extensiveness of the operations in a
given province determine the number of OMs. OMs are assisted by circles executives who
are of the rank of SEVP or VP. The entire country is divided into Circles which are further
divided into Zones.

Committees of the board

 Board Audit Committee.

 Board Human Resource and compensation Committee.
 Board Risk & Compliance Committee.

DIVISION OF UBL’S OFFICE

Basically there are two types of offices in UBL

1. Head Office

2. Regional Head quarters

1. Head Office
Head office of UBL is in Karachi. It exercises overall control over the bank. The head
office (HQ) has various functions.

 It formulates polices and ensures its implementation.

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  To supervise and control the operations of the regional offices.
 To formulate policies and ensure its implementation by the field offices.
 To deal/liaison with foreign donors like IBRD (World Bank), Asian
 Development Bank, Islamic Development Bank, KFW (German Bank),
 FMO Netherlands etc.
 To deal with Ministry of Finance.
 To supervise RHQs.
 To sanction loan applications received from the branches.
 To deal with ministry of finance.

2. Regional Head Quarters

There are Eleven Regional Offices of UBL which fully cooperate with the Head
Office. UBL Regional Offices performance with reference to sanctions, disbursement,
recoveries, and deposit mobilization is of vital importance to the bank operations. The
functions are as follows:

 To implement the policies formulated by the Head Office.

 To extend the credit facilities by keeping in view all the prescribed conditions.
 To recover/collect the existing long-term credits extended by the bank as per
schedule.
 To assist customers in the process of development by advancing loans for viable
financial projects.
All the 1385 UBL branches are the representatives of the bank. These branches
provide commercial as well as non-commercial banking facilities. Various structures
involved in the organization of UBL are given below.

5.1.2 Number of employees

In 2017 UBL has 15000+ employees.

5.1.3 Introduction of all the departments

 Remittance Department
 Account Opening Department

 Cash Department

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  Deposit Department
 Credit Department

 Finance Department
 Marketing Department
Account Opening Department

This department develops relationship between the banker and the customer. This department
Performs work for opening account in the bank. The people who want to open the account in
the bank fill form of account opening after retiring from the bank. The officer of this
department gets required information about the customer.

In order to open the account it customers I.D card is varied from Nadra office. After filling
the account opening application form, it is necessary to provide the CNIC copy of next of kin.
Once the customer provides signature specimen; the account is opened by depositing a
minimum sum of Rs. 1000 or 500.

Deposit Department

The deposit department performs some very important function of bank. The people who
have surplus money deposit their money in the bank in order to secure it. These deposits are
considered as liability of bank. Different type of deposit is.

Current Deposit
 Customers withdraw deposits without previous notice to the bank
 Withdrawals unlimited
 No profit

PLS Saving Deposit

 PLS saving account is opened on an application made on the banks set form
 Charitable institution, corporation may get it opened
 These are profit and loss deposit account and half yearly profit is paid
 Zakat is deducted

Fixed or term deposit

 Customer has to fill in an application form complete by the bank

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  Amount is deposited for a specified time period
 Rate of profit varies from time to time
 Interest is paid to depositor
 In fixed deposit profit is high as compared to current and PLS saving deposit.

Cash Department

Cash is used for lending and borrow of money. This is important function of bank. Cash
department is used to transfer of cash. The responsibility of this department is not to
mistreatment or exploitation of cash. In cash department cash is given to customers against
checks passed or other instrument as well as received cash against on paying bills,
transferring etc.

a) Receipts

The deposit of customer is recorded in the shape of ledger account and every customer has its
own ledger account and ledger card.

b) Payment: The bank makes payment through checks.

c) Cheques: Cheque must have following requirement that must perform by customer in
writing

 Payable on demand either bearer or order

 Drawn on specific bank only
 Payable to specific person
 Signed by a drawer
 Cross Cheques

Two parallel lines show in the left corner of cheque

 Money goes to account

 Name, amount, signature is necessary
 Oder Cheque

If cut word bearer from the cheque. In order cheque

 Bearer Cheque

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In this cheque order is not mentioned. In type of cheque anyone can get money from bank

Cash Department

Receit

Cash
Payments Department

Cheques

Figure no. 2

Clearing Department

The responsibility of this department is to understandable the in city and out of city cheques
with the help of NIFT. The banks receive charges for these services and then prepare voucher
to send to region. Two types of clearance of cheque are.

Types of clearing

a) Inward clearing
b) Outward clearing

a) Inward clearing

Cheques of bank that are deposited to other branch brought to us through the NIFT. This is
called inward clearing. In this type of clearing debit our account holder and credit by the
other branch.

NIFT=Procedure manual for automated chq. Clearing system and related services

b) Outward clearing:

Cheques of other banks which are presented in our branch in which we check certain factors
such as amount, date and signature are properly mention or not. In outward clearing debit the
suspense account and credit the account holders.

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Marketing Department

a) Lack of marketing at desk due to lack of training and awareness of employees.

b) Lack of promotional Activities

c) Little attention to the apparent condition of the bank exterior, interior layout and design of
furniture in most of the branches

Credit Department

The credit department use to provide the money against marketable securities, tangible assert
and promissory note. The bankers prefer those securities which are not too risky.

 Mortgage:

This is the process of lending the money in against of land or any other assets and the time
duration for which the customer lending the money from bank he cannot sell his property.

 Securities:

When applicant can’t provide the tangible security then the bankers relay on the personal
guarantee to protect own self against any loss on advances.

 Pledge:

In the pledge the bank has exclusive procession of property until the money is repaid to the
bank and after the date of pledge the bank has right to sale property after due date.

Agriculture loan:

Different categories of agriculture loans

 For fish farming

 For life stock
 For development
 Trackers
 Tube wells
 Storage
5.2 Structure of the accounts and finance department

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Data Entry, Ledgers, Bank Reconciliation, Recovery, Payments and Procurement etc.)

 Data Entry:
Direct input of data in the appropriate data fields of a database, through the use of a
human data-input device such as a keyboard, mouse, stylus, or touch screen, or
through speech recognition software.

 Ledgers:

The ledger is a permanent summary of all amounts entered in supporting journals

which list individual transactions by date. Every transaction flows from a journal to
one or more ledgers. Bank financial statements are generated from summary totals in
the ledgers

 Recovery:

The term recovery refers to collection of amount due. The normally recovery depends
on the purpose, time and condition, business running process etc.
Normally loan amount will be recovered on installment basis. The manager can fix
installment period on the basis of nature of their business.
Example:
 Installment fixes on salaried person on a monthly basis.
 In the agriculture sector, installment fixes on biannual basis.
 Business person normally 1 year per installment
 Recovery is different from one loan to another.
 In short term loans recovery is less than 36months.
 In medium term loans recovery is from 36 months to 84 months.
 In long term loans recovery is normally 84 months or longer.

 Payments:

A payment is the transfer of an item of value from one party (such as a person or
company) to another in exchange for the provision of goods, services or both, or to
fulfill a legal obligation. The simplest and oldest form of payment is barter, the
exchange of one good or service for another.

3.2.1 Department hierarchy

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Figure no. 3

Numbers of employees working in the Finance Department

Numbers of employee working in finance department are about 32% of the total employees

3.2.2 Finance and accounting operations

Making investment in potential projects, making decisions to undertake the project with
positive cash flows and allocation of funds and resources are the functions/ operations of
finance. The Finance Department provides a range of financial support services. These
services include the management of the Council's finances, financial reporting, budgeting,
accounting, financial advice, ledger and accounts maintenance, financial systems, treasury
management and stewardship matters.

The service is also responsible for all Benefits work, the collection of sundry debts, Income
Services and the collection of Council Tax and Business Rates. All aspects of insurance and
risk management advice, together with the payment of suppliers complete the range of
services provided.

Similarly preparing income statements, balance sheets, cash flows, calculating mark up
interest rates, employee’s salary accounts, passing debit and credit entries in ledger, income
and expenditure accounts are the accounting operation for the said organization. The finance
department deals in authenticity of cheques, proper utilization of funds, preparation of day
end statements, online banking, collection of mails, opening & closing account of customers
& companies etc.

Functions of Finance Department

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Accounting System of the organization

UBL maintains its accounts on the basis of GAAP (general acceptable accounting principles).
The Bank maintains its accounts according the companies ordinance 1984.

All account officers work under the operation manager in operation department, and submit
daily, weekly , monthly and annual statements to the head office or as demanded by the Head
Office.

3.3 FINANCIAL STATEMENT ANALYSIS

3.3.1 Common Size Analysis (Horizontal and Vertical)

 Common size Analysis

Common size analysis is an analysis of financial statements where the total assets divide all
balance sheet items of asset side and all credit side balances divided by all liability items and
all income statement items are divided by net sale/revenue. Common size analysis are helpful
extremely to high light changeover the time in financial performance and financial conditions
of the company.

We have analysis the vertical and horizontal analysis of three years of UBL we have looked
the profits of these three years of both the vertical and horizontal.

In vertical and as well as horizontal analysis we have observed that 2016 is the strongest year
and weakest year is 2014

 Vertical Analysis

The reason of low profit in 2016 according to the vertical analysis is the income which has
been decreased by (80.6%) as compared to the previous years. And dividend income which
have increased by (7.1%) and the other income decreased by (0.8%) as compared with
previous year. Well in 2016 the markup interest earned is low as the previous year but the
expense is also decrease relative to the previous year but the high increase in the total
income.

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  Horizontal Analysis of UBL

When we see the assets part of the balance sheet the cash have slightly increased in 2016 has
9.3% with compare to previous year which has 9.2%. That also shows the balance with other
banks have increased with the same intense. The investment that is done with the financial
institutions is increased. The cash balance that is reserved is not being invested efficiently.
The main thing to notice here is that the bank have focused on the deposits and gained a huge
amount from it. But this cash collected from the customers in form of deposits is not being
invested in the financing for the consumers. Because the net investments since 2014is not
improve this is constant rate of almost 50%. The bank must take this thing under
consideration. This ratio can be increased if the bank undertakes the financing part to be
stronger so the extra cash of the bank can be utilized to generate more return from the
financing in the consumer finance procedures.

Overall is very satisfying position in 2016 with compare to past years. But the thing is which
I notified is the liability section because the liabilities in form of deposit is decrease. This
thing directly impact on the share capital also share capital is slightly decreased share capital
in 20116 is 0.8% and its continuously going downward in 2014 its 1.1% so here is the
alarming situation for management to improve this.

3.3.2 Ratio Analysis:

Ratio analysis is very helpful to the management of the organization as well as for the
investors and creditors. Investors keep an eye on the bank financial statement and make
decisions whether to invest fund in that bank or not. Similarly creditors also analysis the
financial statement and make decisions whether to grant loan or not.
Financial statement for the last three years from 2014 to 2016are given above:

3.2.2.1 Liquidity ratios

Liquidity ratios means to measure short term solvency of the company. Ability of the
company to pay its short term debt. Following ratios is calculated in order to measure the
short term solvency of the company.
 Current ratio
 Acid test ratio
 Working capital

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Current ratio:
Current Asset = Cash and balance with treasury and other banks + Lending to financial
institutions + Investment + Advances
Current liability = Deposit & other account + borrowing to financial institutions + sub
ordinates loan + pay bills
Current ratio = current asset / current liability
Year 2014 = 1088503 / 957702 =1.13
Year 2015 = 1371648 / 1227759 = 1.11
Year 2016 = 1540191 / 1393193 = 1.10
Graphical representation

1.14
1.13
1.12
1.11
1.1
1.09
1.08
2014 2015 2016

Graph no. 1
Interpretation: As the current ratio in the year 2014 is 1.13, 2015 is 1.11 and year 2016 is
1.10. The current ratio is decrease in both years. The current ratio 1.0 is considered
acceptable for a public utility.
Working Capital ratio
Current Asset = Cash and balance with treasury and other banks + Lending to financial
institutions + Investment + Advances
Current liability = Deposit & other account + borrowing to financial institutions + sub
ordinates loan + pay bills
Working capital= current asset - current liability
Year 2014 = 1088503 – 957702 = 130801
Year 2015 = 1371648 – 1227759 = 143889
Year 2016 = 1540191 – 1393193 = 146998

150000
145000
140000
135000
130000
125000 Page | 22
120000
2014 2015 2016
Graph no. 2
Interpretations: Working capital in the year 2014 is Rs 130801 and in year 2015 is 143889,
in 2016 is 146998.The working capital in2016 is increased as compared to 2015 and 2014
Cash ratio:
The cash ratio or cash coverage ratio is a liquidity ratio that measures a firm’s ability to pay
off its current liabilities with only cash and cash equivalents. The cash ratio is much more
restrictive than the current ratio or quick ratio because no other current assets can be used to
pay off current debt–only cash.
Cash ratio: Cash + cash equivalent / current liabilities
Year 2016 = 0.77
Year 2015 = 0.68
Year 2014 = 0.64

cash ratio
1
0.8
0.6
0.4 cash ratio
0.2
0
2016 2015 2014

Interpretation: The cash ratio shows how well a company can pay off its current liabilities
with only cash and cash equivalents. This ratio shows cash and equivalents as a percentage of
current liabilities.

A ratio of 1 means that the company has the same amount of cash and equivalents as it has
current debt. In other words, in order to pay off its current debt, the company would have to
use all of its cash and equivalents. A ratio above 1 means that all the current liabilities can be
paid with cash and equivalents. A ratio below 1 means that the company needs more than just
its cash reserves to pay off its current debt.

3.3.2.2 Market ratios:

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Market ratios are commonly used by investor to access the performance of business as an
investment and also the cost of issuing stock.
 Earnings per share
 Book value per share
Earnings per share: Earnings per share (EPS) is the portion of a company's profit allocated
to each outstanding share of common stock. Earnings per share serve as an indicator of a
company’s

Earning per share

24
22 ERP
20
18
16
2016 2015 2014

Graph no. 3

Interpretation: The EPS of UBL in year 2014 is 19.32 in 2015 is 21.36 and in 2016 is
22.70.EPS is gradually increase since 2014 and increase the profit. That benefit of
shareholders and company.

Book value per share:

Book value per share = Total shareholders’ equity / Number of share outstanding

2014 = 125516 / 12242 = 10.25

2015 = 124135 / 12242 = 10.14

2016 = 151737 / 12242 = 12.39

15

10

0
2014 2015 2016

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 Graph no. 4

Interpretation: Book value means how much the value of the share in the record of the bank
in the year 2014 to 2016 the book value of the share united bank increasing that shows the
strength of the united bank share in the share market. That is also beneficial for shareholder.

3.3.2.3 Activity ratios:

Activity ratios measure a firm ability to convert different account with in their balance sheets
in to cash or sales.

 Total Asset Turnover

 Fixed Asset Turnover

Total Asset Turnover:

Total Asset Turnover = Total Revenue / Total Asset

2014 = 82735 / 1111414 = 0.07 times

2015 = 94353 / 1400651 = 0.06 times

2016 = 98219 / 1557551 = 0.06 times

0.075
0.07
0.065
0.06
0.055
2014 2015 2016

Graph no. 5

Interpretations: Turnover means how many times we make the sale during the year as
compare to our total asset. This trend of decreasing is in the year 2014 up to 2016. These
ratios determine that revenue is low down the turn over asset year by year

Fixed Asset Turnover

Fixed Asset Turnover = Total Revenue / Fixed Asset

2014 = 82735 / 30303 = 2.73

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2015 = 94353 / 31630 = 2.98

2016 = 98219 / 35582 = 2.76

2.9

2.8

2.7

2.6
2014 2015 2016

Graph no. 6

Interpretation: From year to year fixed asset turnover is in year 2014 is 2.73, in 2015 is 2.98
and in year is 2016 is 2.76.fixed asset turnover is increased in year 2015 and in 2016 decrease
as compared to 2015. As the total Asset turnover having decreasing trend in that year that’s
why fixed asset show decreasing trend.

3.3.2.4 Profitability ratio

Profitability ratios measure the earning ability of the firm. Following ratios are calculated

 Net profit margin

 Operating income margin
 Gross profit margin

Net profit margin

Net profit margin = Net profit / Total Revenue *100

2014 = 21930 / 82735 * 100 = 26.50%

2015 = 25727 / 94353 * 100 = 27.26%

2016 = 27730 / 98219 * 100 = 28.23%

 Net profit = profit after taxation

 Total Revenue = Markup/Return/interest earned

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Graphical representation:

28.5
28
27.5
27
26.5
26
25.5
2014 2015 2016

Graph no. 7

Interpretation: Net profit margin in the year 2014 is 26.50%, in 2015 are 27.26 and 2016 is
28.23 respectively shows that net profit margin increase in the following three years. Net
profit margin is to reasonable extent i.e. return on sale after payment of tax.

Operating Income Margin

Operating income margin = Earnings before interest and tax / Total Revenue

2014 = 33398 / 82735 = 40.36%

2015 = 42175 / 94353 = 44.69%

2015 = 46015 / 98219 = 46.84%

Graphical representation

48
46
44
42
40
38
36
2014 2015 2016

Graph no. 8

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Interpretation: Operating means income from operation i.e. earnings before tax. Income
from operation in the year 2014 is 40.36% and in the year 2016 is 46.84% which is showing
that operating income of the bank is increasing year to year bases.

Gross Profit Margin

Gross Profit Margin = (Gross income / Total Revenue) * 100

2014 = (64263 / 82735) * 100 = 77.67%

2015 = (77828 / 94353) * 100 = 82.48%

2016 = (80651 / 98219) * 100 = 82.11%

Graphical representation

84
82
80
78
76
74
2014 2015 2016

Graph no. 9

Interpretation: Gross profit margin year to year bases increasing but in the year 2016 there
is little bit fluctuation in the gross profit margin. It also shows that united bank also expended
his business that why gross income is increases.

Financial Leverage: Financial leverage is the amount of debt that an entity uses to buy
more assets. Leverage is employed to avoid using too much equity to fund operations.
An excessive amount of financial leverage increases the risk of failure, since it becomes
more difficult to repay debt.

The Financial Leverage of UBL in year 2014 is 8.89 in year 2015 is 9.88 and in year
2016 is 10.42.According to ratio the company increase the debt in since 2014. The
company are to invest in any other operation etc.

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 Financial Leverage
11
10.5
10
9.5
9 Earnings Assets to Total Assets Ratio
8.5
8
2016 87
86
85
Graph no. 10 84
83
Earning Assets to 2016 2015 2014
Total Assets Ratio

Earning Assets to Total Assets Ratio are the measure and the indication that how a bank
utilize it’s all earning assets to generate profit. The main purpose of this ratio is to indicate
the percentage of the assets that are contributing in the process of profit generation out of
total assets of the bank.

The ratio of the company shows a decreasing trend of from year 2014 to year 2016. But the
difference is not a high it’s just two percent but this two percent can make a big difference
when the investment is millions.

Another thing that can be noted is the common size analysis of the company in which the
main reason of the down fall of investments was discussed. This ratio shows the good
performance of the earning assets when we compare this to the total assets of the bank. The
ratio is 87.23% that is indicating that the bank is still trying to do good to make an earning for
it and the investors who have invested or the customer who have deposited its funds in the
bank. Graph no. 11

Equity Capitals to Total Assets Ratio

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By the name of this ratio it is clear that this ratio compares the capital of the organization and
the total Assets of the organization. This ratio is different for every organization according to
its business nature. Every industry has its own type of the ratio and must be compared
accordingly. We know that banks have huge deposits and those deposits are their liabilities so
bank invest those deposits on the behalf of the customer to generate profits to run its day to
day short term operations and long term investments.

Graph no. 12

All this is done on the basis of the nature of the

deposits. In figure 3 ratios shows the capital invested by the owners to the total assets of the
bank to see the level of equity and its changes. These changes can be in the favor of the bank
and can be a disadvantage. We can see in the graph that the ratio has a decreasing trend. The
reason of decreasing ratio is the growth of deposits of the bank that increase the level of assets
of the bank but the
capital same all the time. Equity Capital to Total Asset Ratio
This situation is seen 15

from two point-of- 10

views. Equity Capital to Total
5 Asset Ratio

First is the profit on the 0

2016 2015 2014
deposits of the
customers on which the bank is giving them profit and the second is the growth of bank. The
bank gives major part the earnings as the profit and there a little for them to retain. The
customers are getting a good profit for their investments and that is a good indicator from the
point-of-view of the investors and the depositors. But the growth is concerned by the owners
as they also want their bank to grow. As the bank has only been working in Pakistan for 10
years it will take time to maintain a good profit for the customers and growth for the owners.

Return on Equity

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The return on equity ratio or ROE is a profitability ratio that measures the ability of a firm to
generate profits from its shareholders investments in the company. In other words, the return
on equity ratio shows how much profit each dollar of common stockholders' equity generates.

United Bank limited has return on equity is continuously decreasing with compare to past
three years. In 2014 the return on asset or utilization of assets to generate a maximum income
which is 19.65 and this will be decreased to 17.93 in 2016

3.4 Case Study

UBL, Pakistan’s Best Bank 2016, has launched Pakistan’s first Digital Branch. This pilot
branch is located at the Institute of Business Administration (IBA-City Campus), Karachi.
True to its Progressive and Innovative brand attributes, UBL is the first commercial bank in
Pakistan to provide its customers with state-of-the-art facilities enclosed within a cutting-
edge modern design. A completely automated facility, the Digital Branch runs without the
physical presence of any bank staff. Although a pilot branch in its current form, the Digital
Branch is able to provide a host of services that include account opening, as well as service
elements such as cash deposits and withdrawals, Inter Bank Fund Transfers, instant debit card
issuance and replacement card requests. By initiating operations of this Digital Branch in
pilot form, UBL intends to test and ensure a seamless experience for the customer. After the
successful launch of the pilot branch, the Bank plans to expand these Digital Branches
nationally. Customers are greeted and facilitated through their banking transactions using a
combination of digital technologies and a remotely located teller accessed through video-link.
These features allow the Digital Branch to be accessible even after banking hours for all
customers. The branch was inaugurated by Mr. Wajahat Husain, President & CEO UBL and
Mr. Syed Irfan Ali, Executive Director, State Bank of Pakistan (SBP). Also present on the
occasion were Dr. Izhar Hussain Director, Centre for Executive Education, IBA and officials
from SBP, UBL and IBA Karachi. Speaking at the occasion Wajahat Husain, President &
CEO UBL said, “Pakistan today is at the cusp of a Fintech revolution. This stems from a
confluence of factors ranging from widespread adoption of digital technology to a regulator
that is actively encouraging embracing of technology, with proper controls, in banking. By
supporting disruptive technological developments in Pakistan, the Banking industry will
accelerate the national objective of Financial Inclusion and serve its customers better through
improved products and services. This first of its kind initiative, which is being led by UBL,
will add stimulus to the already vibrant technology-based financial sector of Pakistan.” Mr.

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Syed Irfan Ali, Executive Director, SBP said “SBP sees Digital Banking as the future of
banking and this initiative of UBL will help enhance financial inclusion. This unique facility
at the IBA would help spread Fintech culture in Pakistan.”

3.5 POLICY RECOMMENDATION

 Policy frame work should be clear and should be transparences

 UBL are required to motivate their supervisor, branch managers that they treat with
their employees fairly
 UBL should improve its Performance appraisal system and it must be on merit
 Employee training is essential, UBL should conduct training program for their
workers.
 UBL should build a formal recognition program, like employee of the month. Etc.
 UBL should give freedom, power to their workers to carry out their job, tasks so that
they feel they “own” the result. Because workers motivation will be increased if they
have ownership of their work
 UBL should care employee’s bonus, incentives and stock options
 UBL should motivate its employee with effective communication
 UBL should follows the sound recruitment policy
 UBL should also adopting a good marketing concept, advertising strategy,
promotional activities
 UBL should make a good working condition; e.g branch physical environment,
working desk etc. if possible avoid overcrowding and allow each worker his or her
own personal space.
 UBL should administer the associate performance review program

4. LEARNING AS A STUDENT INTERN

4.1 DUTIES
Following are the duties which I have performed during my internship

 Account Opening
 Cash Deposit
 Cheque Deposit
 Issuance of Demand draft

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  Online Remittance
 Issue Deposit receipt
 Voucher Adjustment
 Cheque Book Issuance
 Voucher Checking
 Statement Issuance
 ATM Issuance

4.2 ACCOMPLISHMENTS

During my internship I have performed different tasks. My adviser in the branch assign me
different task which I have completed.

 I accomplished the account opening procedure with the help of prescribed

procedure .In account opening I fulfill all the formalities which are necessary for
the account opening. First of all checking of the applicants original I.D card, 3
pictures, next of kin information,Verses,K.Y.C, letter of thanks, Nab security list,
U.S government security list, After all the formalities then the entry is posted into
a system and authenticate and then account number is listed
 Filling the cash deposit receipt deposit and cheque deposit
 Filling the DD(Demand Draft) form attaching necessary documents with it like
identity card copy with it
 Maintain register for the letter of thanks dormant accounts on daily basis
 Cheque book issuance Registry entry, Signature, entry and authentication
 Vouchers checking and adjustments according to the date
 Uploading of SS card(signature specimen card)

4.3 NEW KNOWLEDGE ACQUIRED

I have learned a lot of thing in this internship program. Before this internship I have no idea
about the overall practices of banking sector. In every department I learned new things
.Before this experience I read only theory but when I see these things practically I learned a
lot of new things .The working in different departments enhance my knowledge.

An exposure of the practical way of business gave me confidence about what I learnt from
my BSAF I was trained there to understand the marketing strategies, planning and problem

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solving techniques. So from all above activities I have increased my-self-knowledge and new
knowledge confidence that will help me take initiatives when I will join any organization

4.4 Skills recommended by organization for potential employees

 UBL policy frame work should be clear and should be transparences

 UBL are required to motivate their supervisor, branch managers that they treat with
their employees fairly
 Employee training is essential, UBL should conduct training program for their
employees
 UBL should administer the associate performance review program
 UBL should care employees bonus, incentives and stock options
 UBL should follows the sound recruitment policy
 UBL should also adopting a good marketing concept, advertising strategy,
promotional activities

4.5 Problems encountered by internee

There are following problems which I faced in bank

During the first week of my internship I felt uncomfortable in bank. Because staff of bank
they have no concerned towards internees

During first few weeks I faced difficulty with the terminology which is used in the bank in
banks all the work is done through manual work so, I felt difficulty to perform all work in
practical Staff of bank not proper guide to the internees.

So, internees get all knowledge only their base because mostly work is manual. So, I had to
spend my all the day sitting on one place this is big problem for me

4.6 HOW EXPERIENCE IMPACTS ON MY CAREER

I spent a good time in United Bank Limited (UBL) High Street Sahiwal. This internship
experience has a great impact on my future professional life .I have learned a lot of things
from this experience .I think after this experience I will better perform the work in any
organization ,Banking or in my own business. This experience will guide me in the
management field .If I want to do job in any banking related sector then this experience will
help me a lot the working in different departments will help me in finding jobs in any

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departments of any bank and financial institutions .I have learned the policies and procedures
of operation departments and I can perform good duties in operating department of any bank
and financial institutions

Conclusions:

With Cooperation of all branch members, I have been able to learn and experience many new
things related to the banking sector and the banks workings. I am able to handle the public
with respect to many different workings on many different instances and also in account
opening for customers and can handle many other tasks as well.

Finally I concluded that UBL is a good organization for a person for his long term career
workings. Overall working and environment of the bank is very comfortable and the staff is
very helpful and respectful of each other and it still maintains a professional environment.
Management of the bank is very strong.

Employees of UBL High Street Branch Sahiwal work more than their working hours and all
the workings take place in a very friendly atmosphere that does not induce pressure on the
person working there. It also shows their loyalty and commitment to the organization. This
branch of UBL relatively small and has climbed its way up very quickly and all that only
because of the employee’s efforts and consideration for each other.

Understanding and the effective management of the human resources is the most difficult
challenge faced not only by the bank but by all the organizations. Even though the people
have been sacrificed in the new organizational developments, it is becoming clear that the
true lasting competitive advantage comes through human resources and how they are
managed. UBL seems to not focusing on this highly critical issue as the job satisfaction level
of the employees working at UBL, was quite low.

Recommendation

After doing a deep study and witnessing everything that goes on in a branch, I would then
like to make the recommendations that;

First of all, the management needs to overlook the major problems that the organization is
currently facing and then develop strategies to eradicate them. Some of the suggestions that I
would like to give at the end are:

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5. Weekly Reports

I am doing internship in united bank limited high street sahiwal.

1st week (03-07-2017 to 07-07-2017)

 I Am Started My Internship 03 July, 2017.

 Check the files and sort it.
 Transfer file from one counter to another.

Issuance of cheque book

First I filled the requisition slip and take signature from customers at requisition slip in two
places.

 Then verify the signature with account holder signature and then stick the stamp of
verification on the signature
 Write the account number on whole cash book
 Write the old requisition slip number in the new cheque book in the starting and
ending
 Enter the register about the issuance of cheque book with name, account number and
date
 Last the cheque book given to customer

2nd week (10-07-2017 to 14-07-2017)

Cash deposit

I did also work in deposit section in the bank for the experience.

The voucher is used as deposit slip. The following requirements are

 The people who want to deposit money first write the account number on the slip
 Account holder name
 The amount which is to be deposited must be written in numbers and figures
 Signature from the depositor

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  Branch stamp also stick in the end of voucher for verification.
 The deposit slip base in two pages. 2nd page is copy of 1st page and this is given to
customer as a proof of payment. First banks book and second copy also for depositor
Denomination
Pakistani currencies rupee haveseven types
 Ten
 Twenty
 Fifty
 Hundred
 Five Hundred
 Thousand
 Five Thousand

Cash types

Issuable

 Issue only clean notes to public

Non-issuable

 Unclean able notes first send to SBP for recover than received clean notes from
SBP than issue to public

SBP Sheet daily

 After closing all transactions of customers than we prepare a final daily work
sheet

Cash Payment

 Bank must pay previous six month old cheque amount customer. But not pay of
next day of cheque from current date

Open Cheque

 An open cheque is a cheque that is not crossed on the left corner and payable at
the counter of the drawee bank on presentation of the cheque.

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Cross Cheque

 A crossed cheque is a cheque that has been marked to specify an instruction about
the way it is to be redeemed. A common instruction is to specify that it must be
deposited directly into an account with a bank and not immediately cashed by a
bank over the counter.

Post-date cheque
 A postdated cheque is a cheque on which the issuer has stated a date later than the
current date
Accounts

There are two major types of accounts

1 Current Account
2 Saving Account

3rd week (17-07-2017 to 21-07-2017)

Cheque deposit

I also did work in deposit section of bank. There is different nature and types of cheques
which are deposited in the bank. There are conditions for presented different nature of
cheques.

 If the same city cheque is presented in the bank than there is no charge is taken by the
bank.
 If different cities cheques are presented in the bank then the bank must be charged.
 If the amount is more than 25000 then the bank takes charges.

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The following is the procedure of cheque deposit. To deposit check for this purpose voucher
is used. This voucher is called transfer slip.

 The name of that person who want to deposit cheque

 The account No of that person whose cheque is presented in the bank for deposit
 Date and amount also written on the slip
 Then last is to take signature from the depositor
 The copy of the slip is given to customer

The cheque is presented to NIFT (national institute of facilitation technology) for clearness
and its return back after clearness.

4th week (24-07-2017 to 29-07-2017)

Account opening

I learnt of account opening in the bank. Procedure to involve account opening department are.
The forms which are used in account opening procedure have following contents.

 Name of the branch

 Code of the branch
 Type of account
 Customer name
 Customer CNIC Number
 Date of the account opening
 First deposit
 All the relevant information gathered by the customer related to type of account and
also relevant documents
 Signature of account holder
 Address of account holder
 Source of income of customer
 Proof of income
 Account opening department opens the account and the official take signature with
stamp
 NADRA analysis and KYC(know your customer) are require for account opening

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The following procedure involve in Account opening process

 The customers who want to open their account in the bank first fill their account
opening form
 The bank gets various documents for account opening such as CNIC copy. CNIC of
next kin and proof of income
 Two signature marks required for verification of signature
 Record the information about customer in the register and assign the account number
to the customer.

Bank given to customer cash book after the recognition letter.

5th week (31-07-2017 to 05-08-2017)

CNIC verification

 I learn from internship about the software that’s used for NADRA CNIC
verification.
 For verification of NADRA Card CNIC number is enter in the software.
 After verification mother name, religion name and resident is displayed.
 This verification is used for gold loan and account opening

Bonds
What is a bond?
Benefits
How to return from customer
Process of taking bonds from customer for bank

Demand draft (D.D)

I learnt the procedure of demand draft in the bank. Demand draft is used for transfer
of money from one place to another. The following are the procedure of demand
draft.

 Request from fulfilled for demand draft

 Write the information about the person from whom the demand draft is made
 Branch name, branch code, name and address are included in demand draft

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  Charges are different for account holder and non-account holder
 If the amount is more than 25000 then the bank deduct some charges
Call Detail Record (CDR)

A call detail record (CDR) is a data record produced by a telephone exchange or

other telecommunications equipment that documents the details of a telephone
call or other communications transaction

Remittance

A remittance is a transfer of money by a foreignworker to an individual in his or her

home country. Money sent home by migrants competes with international aid as one
of the largest financial inflows to developing countries.

ATM

ATM stands for Automated Teller Machine. It's a specialized computer that makes it
convenient to manage your money.
CARD TYPE
Balance limit
1. Silver card Rs. 25000
2. Gold card Rs. 50000
3. Platinum card Rs. 100000
4. Master Card
5. Pardess Card
6.
6. Need introduce friendly Products

In order to compete in the ever-expanding market both nationally and internationally,

introducing new and efficient products is one of its major requirements.

 Centralized Structure

Centralized Structure that enables employee involvement needs to be formed.

 Better Reward System

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Better reward system is one of the most important requirements in order to reduce the
problem of Employee retention and improve Employee motivation.

 Continuous Training of Employees

 Creation of enhanced performance appraisal system

 Implementation of enhanced Marketing system
 Continuous lecture on better communication of staff with customers
 ATM Machines Maintained

ATM machine must be maintained properly to make it more convenient for the customers
and to decrease the load of work to the employees of the bank especially in the salary days.

 Staff Member

I have observe during working that there need of more staff due to pressure of work UBL
should hire more employees for better performance even any employee when take leaves
Manager has no choice to his work to other employee so this situation built high pressure.

 SYMBOL SYSTEM

To make the SYMBOL system more efficient and make sure its connectivity all the time in
order to provides more convenience to customers.

 Job Rotation for Employees

UBL should to make the strategy where make the job rotation of employees

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