Internship ReportSubmitted to: Sir Faisal Iqbal MBA 6th Semester City Campus Gujrat 1. “ACKNOWLEGEMENT” First of all with s sense of gratitude I bow my head before ALMIIGHTY ALLAH, the omniscient, who bestowed my potential to accomplish the task and all the qualities have, who made sources within his beings who with the help and willing of God others and tell the right path, so I am thankful to those who have lots of contribution in the compilation of my internship reports. I would like to show my gratitude towards my dignified teachers for providing me guidance. A standing ovation and hearty round of applause go to Mr. Shehzad Mahmood, who has always been kind and helpful towards me , I really great pleasure and honor from core of my heart to say thanks to him for being so kind and supportive. His kindhearted behavior has printed deep and everlasting shadow on my heart. I am also very thankful to staff members of bank, who were really cooperated with me and provide me their complete guidance and give me their costly time and told me even their minor things of banking. 2. VISSION of United Bank Ltd To be a world class bank dedicated to excellence and to surpass the highest expectations of our customers and all other stakeholders. 2. MISSION of United Bank Ltd “THEIR MISSION IS TO BECOME A WORLD CLASS BANK, WHERE YOU COME FIRST” Set the highest industry standard for quality, across all areas of our operation, on a sustained basis Optimize people, processes and technology to deliver the best possible financial solutions to our customers Become the most sought after investment and Be recognized as the employer of choice 3. Core Values of United Bank Ltd Honesty and integrity Commitment and dedication Fairness and meritocracy Teamwork and collaborative spirit Humility and mutual respect Caring and socially responsible Table of contents: 4. 5. Executive Summary 1 Introduction 5.1 5.1.1 Back ground of study 5.1.2 Purpose of the study 5.1.3 Scope of the study 5.1.4 Objective of the study 5.2 Overview of the organization 5.2.1 History of banking in Pakistan 5.2.2 History of UBL 5.2.3 Nature of organization 2 2 2 3 3 5.2.4 Major developments, business and successes 5.2.5 UBL business line 5.2.6 PEST analysis 5.2.7 Contribution toward economic development 5.3 Company information 5.3.1 Organizational hierarchy chart 5.3.2 Organizational hierarchy 5 6 10 12 5.3.3 5.3.4 5.3.5 5.3.6 Number of employees Main offices Number of branches Introduction of UBL departments 5.4 Internee’s work 5.4.1 Introduction of the branch 5.4.2 Staff of the branch 5.4.3 Basic information 3 4 5 13 14 15 15 16 17 23 24 24 5.4.4 26 5.4.5 Detail of the supervisor Weekly time table 1st Week 5.4.6 2nd Week 29 5.4.7 6. 7. 8. 26 rd 30 th 3 Week 5.4.8 4 Week 32 5.4.9 5th Week 34 5.4.10 6th Week 36 5.4.11 Summary of learning 37 Conclusions of the report 6.1 conclusion 6.2 SWOT analysis Recommendations References 40 42 46 47 4. “EXECUTIVE SUMMARY” This internship report is actually is brief discussion of functions which are being performed at UNITED BANK LIMITED .UBL was established in 1959 and is one of the major commercial bank of Pakistan. The bank is making every effort to meet the upcoming challenges through strategic planning and making the best use of available resources at its corner. A professional team was appointed in mid 1997 to restructure the bank and to commence rightsizing. The management is also the process of rationalizing the branch network and identifying and recovering its doubtful and classified portfolio. It has planned to institute major improvements in customer services and internal system to improve efficiency. It also intends to launch innovated products. The bank is increasing resource mobilization through regular deposit campaigns and accelerating the process of recovery of outstanding advances and non performing assets. UBL has assets of over Rs. 640 billion, shareholder’s equity over Rs. 67.3 billion and track record of 50 years, in addition to the convenience of over 1400 branches serving you through the country and also at several overseas 19 branches. 5. Introduction It is necessary requirement for the student’s of business administration to submit the internship report. This part tells the purpose of study, scope and objectives. I did my internship from UNITED BANK LIMITED G.T ROAD branch Gujrat. About experience I have in bank during my internship is not bad. It helps me to enhance my knowledge and skills which I already have learned during my MBA degree. Even though time was short but I try hard to learn up to date knowledge and skills. 5.1.1 Background of Study It is the requirement of university of Gujrat to do internship in organization so I choose United Bank Limited. Even though there are many industries and services organizations to does the internship but I choose the banking sector because I have interest in banking sector and I have also family member in banking sector, so I want to learn about the services of bank. I also want to observe the dealing of banks with businesses and individual customers. 5.1.2 Purpose The purpose to do internship was to enhance my practical knowledge, To learn about the banking operations To learn the customer dealing To improve my professional skills To improve report writing skills To get knowledge of practical fields that helps me in professional life To learn about new technology which applicable in banking sector To work practically in an organization. To develop interpersonal communication To observe, analyze and interpret the relevant data competently and in a useful manner. 5.1.3 Scope The scope of internship is to gain the banking knowledge and its daily operation and then apply it in the practical field. I will be able to carries out inquiries on banking operations and combines the critical data as well. 5.1.4 Objectives The bank aims to provide better and efficient services to its customers. Need for improving the financial performance of company, following are the objectives. To take necessary steps to stop the leaking of the revenues and expenses To correct the structure flaws in the balance sheet To ensure internationally accepted accounting standard To provide personalized banking services To accelerate commercial activities To mobilize domestic saving To provides better services among competitors To introduce modern banking services and techniques To implement a performance appraisal process to provide motivation Continuously improve upgrading skill levels of staff 5.2 Overview of the Organization 5.2.1 Banking History in Pakistan The word ‘bank’ is said to have been derived from the word ‘Bancus’ or ‘Banque’, which means a bench. The reason of this opinion is the fact that the Jews in Lombardy transacted the business of money exchange on benches in the market place; and when the business field, the ‘Banco; was destroyed by the people. Incidentally the word Bankrupt is said to have been evolved from this practice. Other authorities hold the opinion that; bank is derived from the German work back which means, joint stock fund. Later on when the Germans occupied major part of Italy, the word back was Italianized into bank; however, it is not possible to decide that whose opinion is correct, because no record is available to ascertain the validity of any of the opinion. 5.2.2 History of UBL History of banking in Pakistan stands with partition. At the time of independence there were 487 offices of schedules banks in the territories now consisting Pakistan. But after the announcement of independence plan, the banking services n Pakistan were seriously suffered. The banks transferred their registered offices from Pakistan to India. So, by 30 th June 1948, the number of the offices of schedule banks in Pakistan declined from 487 to195. In June 1959,Mr.Agha Hassan Abedi decided to open a bank different from others to provide modern banking facilities to trade and industry and to promote the habit of saving among common people. Necessary formalities have been compiled for registration certificate to perform business to STATE BANK OF PALISTAN for permission. After all these formalities on 7th November 1959, UBL came into existence as a schedule bank. In 1963 first overseas branch was opened in London .in 1966 two branches in Bradford and Birmingham were also opened .in 1967 Dubai and Abu Dhabi branches were opened. More important thing is that UBL is pioneer in computerization of banking. Its larger branches are fully computerized. Saving and current deposit accounts are completely computerized in almost all branches. Head office was establishment in New Jubilee insurance house; I.I.CHANDRIGAR ROAD KARACHI. It was registered as JointStock Company. The bank was incorporated with an authorized Capital of Rs. 20 million which was later rose up to Rs. 112 million. Mr. CHUNDRIGAR was its chairman who died in December 1960 and was replaced by Mr. Habib-I-Rehmat. MianShafiqueSaigul was its managing director who was replaced by Mr. Agha Hassan Abedi in 1962.after nationalized Mr. A.K. Yousafi was appointed as managing director for a short while and later on designated as president; he was replaced by Mr. Zia-ud-din in on 1-1-1997. Now new president is AtifR.Bokhari. 5.2.3 Nature of the organization United Bank Limited is a banking company incorporated in Pakistan and is engaged in commercial banking and related services.UBL operates 1400 domestic and 19 overseas branches situated in UK, USA, UAE, Yemen, Bahrain and Qatar. It also operates one offshore branch in export processing zone, Karachi and it has representative offices in Cairo (Egypt) and Tehran (Iran). It also has joint venture with Oman united exchange Co, and a subsidiary United Bank A.G Zurich, Switzerland set up in 1968. It has 412 ATM’S across country.UBL has assets of over Rs. 640 billion, capital and reserves of over Rs. 58 billion and solid track record of over 50 year. 5.2.4 Reward honors & success stories etc Products development UBL marketing department put lot of effort on introducing of new products and services in market which provide them lead in banking sector like UBL introduce various Shari’ah products and services like Monthly Profit Ameen Certificate of Islamic Investment, Signature Priority Banking, UBL BetterlifebanCassurance, Ameen Vise Debit Card, Shipping Guarantee/Airway Billendorsement Product. IT department of UBL make great effort to make online the branches successfully and transfer the branches from core banking solution to Islamic banking operation in all UBL Ameen branches and windows, thus enabling Ameen to connect with over 900 online branches across Pakistan. This will not only enhance the brand image but will also increase the Islamic banking outreach. During the year training and courses were also offer to UBL employees for improving of their skill to latest technology and knowledge. For this organize the workshop and seminar that aimed at enhance the skill and level of knowledge and banking sectors with latest level and also introduce the latest way to deal and introduce new products and services for their customer. It have also some other benefit and rewards like Employees compensated absence to vested and non-vested absences accumulated by its eligible employees on the basis of actual advice under the Project Unit Credit Method. Bank provide the post retirement medical benefit which is defined benefit scheme which is apply to those who are eligible and retired from the job. For this bank made annually provision to meet the cost of this scheme. To motivate its employees for long term relationship with them bank offer different reward and bonus which increase the employees to meet the objective of bank. The liability of bank is fixed and determined each year which is based on the performance of bank. UBL is pioneered in developing a scheme of Government to People (GTP) aid distribution through its large network of branched on the IDP’s aid distribution. UBL distribute 500,000 Watan card to flood affected families on the Government assignment to produce, personalizing and distributing Watan card UBL are also an innovator and technology leader in banking sector. It upgrades its transaction (ATMs and alternative distribution channels) and branches core system. UBL is also up-to-date its core banking operation by developing software, products of SunGard. Which is providing a centralized and customer based system. it will provide 360 view of customer and integrated retail and corporate banking modules, thus ensuring better control for bank and refined services for customer UBL operates a pension scheme (defined benefit scheme) for staff, but this scheme is closed for new member. 5.2.5 Product/service lines You as an individual can gain and benefit the most through UBL Consumer Banking. In UBL you get friendly, efficient and attentive personalized banking services - a unique banking relationship experienced by each UBL client. You can utilize the following services. UBL Priority Banking Signature, UBL's Priority Banking service is uniquely designed to meet the highest expectations of our high potential, high net-worth clients; wherever they may be. Launched as an independent brand, Signature offers focused and personalized Wealth Management Services for selected, high net-worth individuals in a completely secure and congenial atmosphere. Being preferred customers, these clients will be given exclusive benefits, free services and a lot of value added facilities. UBL BetterLife-Bancassurance HAPPIER Time Ahead We are pleased to announce the launch of UBL BetterLife Plans under the umbrella of Bancassurance, in partnership with EFU LIFE Assurance CompanyIN selected 100 Branches What is Bancassurance Bancassurance is the selling of insurance and banking products through the same channel, most commonly through bank branches. Product Offering UBL BetterLife plans are advanced insurance products specifically designed to benefit the customers, providing the better and secured future to your family and loved ones. UBL Wiz is Pakistan’s first ever Prepaid VISA Debit Card that provides the convenience, security and benefits of an ATM and Debit Card, locally and internationally Ubl Wiz More than just an ATM card, you can use your UBL Wiz everywhere VISA cards are accepted. Whether you are using it online, paying for petrol, shopping or dining, you are accessing money directly from your prepaid card, without having to visit the bank. Buying a home Why rent when you can buy? Buying a home of your choice has never been so easy. With a maximum financing limit of 80% you can easily buy a house or apartment that best fits your requirements. So go ahead and start the search for your dream home because with easy and affordable installments you need not think of renting a house when you have hot UBL Address. UBL Business Line UBL Business line is a complete solution to all your Business Financing needs. With UBL Business Financing facility, you can now take your business to greater and newer heights, and achieve the level of success that you truly deserve. UBL Business line is a running Finance facility that not only provides funds for growth but also enables you to capitalize on profitable opportunities. UBL Cash line UBL Cash line is a flexible loan that provides you cash up to Rs.500, 000 without any security requirements. It empowers you to take control of your finance. UBL Cash line is aimed to make your life easier ZINDAGEE ASAAN. Whether you are a salaried individual or a businessman, UBL Cash line takes care of your cash requirements. UBL Credit Card Welcome to the world of UBL Credit Cards the most exciting and vibrant credit card brand in Pakistan. We offer you a range of innovative and exciting cards that is not only powered by the security of chip but also enable you to personalize it any way you want UBL Money UBL money, the personal installment loan from UBL provides you with power, Control convenience and the flexibility to manage your financial requirements and realize on your dreams. It’s about buying new furniture or marriage expenses, financing the education of your child or enjoying vacations abroad! UBL Money caters your needs handsomely. You can borrow any sum between 50,000 to 500,000 (PKR) and payoff up till 5 years. Other Services: UBL Wallet: UBL Wallet VISA as your debit card, you can shop all you want, eat all you can or fill up car tank without carrying any cash. Small Business Scheme Under the Small Business Scheme, UBL is providing loans on easy terms to those who wish to set up their own small-scale business. This scheme is aimed at spreading prosperity in the country by reducing unemployment. As more and more people start their own industrial units, the country will move steadily towards economic self-reliance. PLS UniSaver Let your savings earn you bucks. PLS UniSaver offers you semi annually profit disbursement with profit being calculated upon average monthly balance. PLS UniSaver Plus Big amounts earn you big; but with PLS UniSaver Plus, we make it bigger for you. With deposits starting from Rs. 25 million, we offer 5.00% but more you put in, more profit rate will we offer. E-Transaction (Current Account) In the era of glooming computerization, even Chicago, Tokyo, Sydney, all are seconds away from you. Internet has turned distance into time, and we have turned your account into a shear pleasure. Now sitting at home, or at office or anywhere in the world, we offer you a wide spectrum of world-class electronic services and banking products each time you log in. Use your account like a regular account plus use the premium Internet & Mobile banking services for Instant Fund Transfers, Instant Shopping, Instant Bill payments, Instant Mobile top ups, Alerts, Statements and much more. You love surfing, come surf with UBL. UBL Profit COD Make fix investment with us, choose your profit option, and we will serve you the best rates in Pakistan. What if you earn at 16.25% p.a. Stop imagining, come invest in our Certificates of Deposit! At maturity. UBL Net banking UBL is very much determinant to make banking as you will. How about being in office, or on your way, at home or at anywhere in the world but still connected to your account! Through UBL NetBanking, Access your accounts any time, pay anyone you want, pay your bills, buy vouchers you need and get account alerts, all integrated with one of the best security systems in the world. Humrah Humrah is your secured cash, something that’s safe anywhere and accepted everywhere. Offered in the denominations of 10,000 and 5,000, "Hamrah" Rupee TravellerCheques are the ideal and safest way of carrying cash when travelling anywhere in Pakistan. Let it be business; property; trade or personal needs; we make you have the most convenient option. Moreover, Humrah RTC's are now accepted at more than 2000 places such as hotels, shops, real estate agents, jewelers, car dealers, etc and of course at all our UBL branches. 5.2.6 PEST ANALAYSIS A broad view of market is important when management is interesting in introducing new and better product or services for customer. Rapid technology change, global competition and buyer demand requires constant attention to identify the business opportunities, identification of external and macro factors that influence buyers and thus customer profile these include Political and legal environment Economic trends Socio cultural environment Technological factors Political and legal environment Banks are strongly affected by political and legal environment of society. This environment is composed of regular agencies and Government law that influence and limit various organizations and individuals. Mostly these laws create new business opportunities. Pakistani Legal and Political Analysis Tax policies in Pakistan is not stable, many organization pay double tax Environment and regulation and protection in not good, but better than other third worlds countries Employment laws in Pakistan are not good Political instability in Pakistan Strong competition among banks ECONOMIC TRENDS The economy of any country directly influences by financial strength of its organizations. An economic indicator includes Gross Domestic Products (GDP), Inflation, balance of Payment, and Debt of Government. A banking sectors requires better consumer market and high borrowing power and borrowing power depend upon, Economic trends in Pakistan 1. 2. 3. 4. 5. Slow economic growth in Pakistan Too much Government spending and have less revenue for it Interest rate and monetary policies imposed by SBP Dual taxation implementation High exchange rate effect economy, so it bad for organization to improve its product or services. 6. Less employment opportunities 7. Too much inflationary rate 8. Billion of budget deficit SOCIO CULTURAL ENVIRONMENT A society is shaped by belief, norms and values. Peoples in a society interact with their culture and it has impact on life’s of society SOCIO CULTURAL ENVIRONMENT IN PAKISTAN In Pakistan lifestyle is changing rapidly Imbalance distribution of income in society Low level of literacy rate Poor or bad living conditions Corrupt Government and peoples affect the society Terrorism and flood make terrible living of Pakistani Foreign companies are not invested in Pakistan Bad economic condition affect the organizations and ultimately affect society TECHNOLOGICAL FACTORS Forces of technological advancement have played important role in shaping the lives of peoples. The rate of changing of technology has greatly affected the rate of growth of economy of country. Advance technology creating deep affects in long run. By adopting new and advance technology banking sectors improve its services deliverability Online banking Debt card credit card 5.2.7 Contribution of organization toward economic development 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 contributions of the banks4. The major bank has made are Catalyst of changes, Personalized service and dynamic approach, Record setting performance and commitment to serve the customers, 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. Consistent International Growth A slow but steady growth pattern is emerging within the gulf economies bringing with it some restoration of investor confidence. This has been evidenced by the ratings upgrade of DEWA, the nearing completion of an amicable Dubai World restructuring and the recent over-subscription of both the Dubai Government and EMAAR bonds. The UAE has also seen significant new M&A activity and improving growth forecasts should pave the way for a turnaround. UBL’s international business continued its solid performance during the quarter, with retail asset provisions having leveled off. Top priority given to liquidity management has resulted in ADR being at a healthy level of around 80% in most markets in which the Bank operates, compared with overall banking sector level of more than 100% in UAE. The Oman-United Exchange Company became the first exchange house in Oman to be awarded the ISO-9001 certification. 5.3 Company information 5.3.1 Organizational Hierarchy chart PRESIDENT Assistant ClericalNo St Messenger Technical Staf Dispatch Rider etc. Cashier 5.3.2 Organizational Hierarchy Board of director NAME ShaikhNahayanMabarak DESIGNATION Chairman Sir Mohammed Anwar Pervez, OBE, HPK Mr. Atif R. Bokhari Deputy Chairman Mr. Omar ZiadJaafar Al Askari Director Mr. Zameer Mohammed Choudrey Director Mr. SeeratAsghar Director Mr. Muhammad Sami Saeed Director Mr. Amin Uddin Acting Chief Financial Officer Mr. Arshad Ahmad Mir Director Mr. Aqeel Ahmed Nasir Mr. AasimJawad SEVP/Company Director President & CEO Audit committee NAME DESIGNATION Mr. Zameer Mohammed Choudrey Chairman Mr. Muhammad Sami Saeed Member Mr. Amin Uddin Member Mr. Aqeel Ahmed Nasir Secretary 5.3.3 Number of employees In UBL 11500 employees are performing their services. 5.3.4 Main offices B.Co B.Name de 160 Chakswari 458 Uch Road Ahmadpur B.Adress CHAKSWARI, TEH. & DISTT.MIRPUR, AZAD KASHMIR. PLOT # B-VI-344/5, AHMEDPUR EAST DISTRICT 36 Grain Market Jara BAHAWALPUR GRAIN MARKET, GATE WEST JARANWALA, DISTRICT 86 Wapda Town FAISALABAD WAPDA TOWN, 26-A, MAHAFIZ COMMERCIAL AREA 27 Prince Ally Road KARACHI PRINCE ALI ROAD, P.O.BOX NO.131, HYDERABAD 1706 BharaKahu 57 Jhelum City 909 Hub Chowki 2 Landhi Ind. 23 Al Haroon 559 Ichhra 7 ShahalamMkt 177 Bank Square Mingora MAIN MURREE ROAD, TEH. ISLAMABAD DIST. ISLAMABAD TEHSIL ROAD, P.O.BOX NO.9, JHELUM CITY HUB BRANCH, RCD ROAD HUB, DISTT. LASBELLA H-G/9-D, TRUST CERAMIC IND. AREA GUJRANWALA(COC HUB 39/4, PREEDY QUARTERS AGA KHAN III ROAD SADDAR KARACHI 93 FEROZEPUR ROAD ICHARA LAHORE SHAH ALAM MARKET, PO.BOX NO.654, LAHORE BANK SQUARE, MINGORA, TEHSIL BABOZAI, DISTRICT Area 32 Peshawar Cantt KASHIRAM BRIDGE, P.O. BOX NO. 5, JACOBABAD 77 Toghi Road TOGHI ROAD, QUETTA 16 Rawalpindi City FOWARA CHOWK RAJA BAZAR P.O.BOX NO. 60 627 Haroonabad MIA ROAD, HARRONABAD, DISTT. BAHAWALNAGAR 296 Ballo Khel Road GALI CITY, POLICE STATION, MIANWALI 745 Mall Indust. Estate SMALL IND. ESTATE SHAHAB ROAD SIALKOT Sialkot 2775 Arafa Bzr Jacobad G.T road Gujrat PESHAWAR CANTT. P.O.BOX NO.214, PESHAWAR.SWAT. G,t road near PSO petrol pump Gujrat 1194 5.3.5 Branches Progress of this estimated institute can be measured in terms of deposits and number of branches opened .UBL have been ranked as number two bank in Pakistan in terms of deposits and number of branches.UBL has 1400 Domestic, 19 Overseas Branches UBL international branch Location No of Branches UAE (Total Branches: 8) Abu Dhabi Dubai Sharjah Bahrain (Total Branches: 3) 4 3 1 Manama 1 1&1 Babul Bahrain&Moharrak Qatar (Total Branches: 1) Doha Yemen (Total Branches:2) 1 Sana Hudiada UK (Total Branches: 4) 1 1 London&Bradford Manchester&Birmingham USA (Total Branches:1) 1&1 1&1 New York Export Processing Zone (Total Branches: 1) 1 Karachi 1 Head Office State Life Insurance Corp. Building #1, I.I. Chundrigar Road, Karachi, Pakistan P.O. Box No.:4306 Phone:(92-21)111-825-111 Gram:"UNITED" Fax: (92-21) 2413492 5.3.6 Introduction of all departments 1. Accounts Department Is said that accounts department is the backbone of the bank. It plays a vital role in performing different banking functions. The accounts department inUBL performingfunctions manually. Different books of accounts relating with other departments are maintained here. With the help of these books of accounts, accountant prepares monthly, quarterly, semi-annually and yearly financial statements. The working in accounts department mainly depends upon voucher system. For each and every transaction-taking place in the bank vouchers are prepared and through these voucher contra entries are passed under different heads. Types of accounts: UBL business partner :( current account) no profit/interest cheque book no restrictions on number of transactions no zakat no cost deposit SAVING ACCOUNT: profit/interest cheque book zakat payable no restrictions on number of transactions withholding tax at prescribed rate on profit low cost deposits BASIC BANKING ACCOUNT: no minimum balance limit two deposit & two withdrawal per month no restrictions on ATM number of transactions FUNCTIONS OF ACCOUNTS DEPARTMENT The accounts department performs the following functions: a) b) c) d) To prepare and maintain the vouchers. To maintain and update the ledgers for term deposits. To update general ledger. To prepare different periods statements. 2. BILLS DEPARTMENT This department basically deals in bills, which come in bank for collection. The bills are cheques, call deposit, drafts and pay order. These bills are from outstation branches of UBL or of other banks. This department provides services to customers at low charges to get their amounts from the nearest branch. Outward Bills for Collection Bills department receives cheques or other kinds of bills from its clients. The condition under Outward Bills for Collection is that the customer must have his account in the branch. This branch forwards the cheque with schedule or covering letter to that branch on which bill is drawn. The checking officer of bills department will cross the cheque with special bank stamp before forwarding the cheque to the other branch. Outward bills for collection register Outward bills for collection register is maintained in order to deep the records of all bills for outward collections. This register is updated two times, first at time of receiving the OBCs and secondly at the time when confirmation advice is received from the other branch, either the cheque will be paid or not by the other bank branch. After confirmation of the amount, confirmation advice is transferred to the sender branch. After confirmation of the amount and bills, the account of the customer is credited against reasonable charges, which is income for the bank. Inwards Bill for Collection These bills come to branch for payments so branch has to verify these cheques, pay orders, drafts and call deposits etc. The party account must be opened in that branch which sends it to paying branch .The responsibility under IBCs of the branch is to verify all the bills within three days, and should send the bank advice to the originating branch. 3. Clearing Department This department welcomes the cheques and other negotiable instruments drawn upon local branches of other banks. State Bank of Pakistan has a clearinghouse, in which the bank representative brings cheques and other Institutions and mutual claims of each bank on other are off set and a settlement is made by the payments. Clearing system is helpful for both the customers and bank in saving of time, labor and currency involvement. Procedure for Clearing ChequesAnd Instruments UBL is a member of SBP and has an account with SBP. The clearinghouse of SBP, through which branches forward and receive, clearing cheques, with a schedule, conducts clearing. The clerk of forwarding branch prepares the schedule and vouchers of all the clearing cheque, which he received on that day and sends these cheques to the checking officer. Checking officer passes these cheques and vouchers by his initials, endorsement stamp and branch special crossing stamp. Clerk posts the contra entries of these vouchers in the clearing register. At every day at about 9:05 a.m. Representative of all local banks are in clearing house of SBP, to receive and forward the cheques. 4. Remittance Department Transfer of money or equivalent to money from one branch to another branch of the same bank is called remittance. Now it has become an easier and safer method both for the client and banker to transfer their money from one branch to another within the city or Outside City. MODE OF REMITTANCES United bank limited, uses following types for transfers of money: 1) Demand Draft (DD) 2) Pay Order (PO) 3) Mail Transfer (MT) 4) Telegraphic Transfer (TT) 1. Demand Draft (DD) A bank draft is an order instrument issued for payment of a certain sum of money to a certain person. There are three parties involved: Drawer: Issuing Bank. Drawee: The bank on which the draft is drawn. Payee: The name of person to whom the payment is to be made. There are two types of demand draft, which are as follows a) DD Issued b) DD Payable Bank’s Charges The bank recovers different types of charges from the applicant on issuance of DD, including: a) b) c) d) 2. Central Excise Duty Commission Tax Postage Charge Payment Order (PO) A banker’s Payment Order is an instrument drawn by a banker on himself Implicit in a payment order is an undertaking on the part of the banker to pay, a certain sum of money, on the presentation of the instrument. The payment orders are generally issued for anyone of the following practical purposes: 1. To facilitate all locally payable expenses on account of a bank for the reason that such payments are not executed through cheques. 2. For the sake of inland and foreign remittances in case where the beneficiaries do not maintain account with the bank. 3. For all local payments under instructions of the customers for sundry purposes like payment of insurance premium, payments to third parties, club bills, rent and taxes etc. 3. Mail Transfer (MT) Sometimes a constituent of a bank wants to transfer funds from one account to another or a non-constituent wishes to remit funds in a particular account maintained at some place with a branch of the bank or when the accounts are transferred from one branch to another branch, such amounts/balances are remitted by means of mail transfer. 4. Telegraphic Transfer (TT) Generally a mail transfer advice reaches the drawee branch the next day, when courier arrangements exist. However, when it is sent through post offices, it usually takes 2 to 3 days to reach its destination. But sometimes an individual whether customer or not, demands that his funds should be transferred from one place to another through the quickest means. 5. Advances Department 1. Fund Base Advances These are those advances in which actual payment of funds is involved. These funds again have been divided into two types. Running Finance or Cash Finance This is a loan, which is provided only to the running businesses to meet their working capital requirements. The bank decides limit on continuing bases. It means that the customer can draw the amount as much as he required as approved by the bank. He can deposit and withdraw the amount on his account. The markup is payable on the outstanding amount only. Demand Finance Facility The bank on demand provides this facility. It means that the bank pays the full amount to the client and mark up is also payable on the full amount. The bank considers the full amount outstanding. The bank provides also facility of loan to its own employees against the security of their immovable property. The rate of mark up on these advances is lesser as compared to the rate of mark up on the other advances due to heavy in volume and mostly for the long term time period. Three Terms of Loans: 1-Short term: duration of 1 year production loans are short term loan 2-Medium term: limit up to 5 years 3-Long term: up to 7 years Developments loans are long term loans. Types of Loan: 1-Production Purposes 2-Development Purposes Types of Finances Running finance/cash finance: Demand finance: Commercial (seasonal) loans: Industrial loans 5.4 Internee’s work 5.4.1 Brief Introduction of internee’s branch Under university requirement I did my internship from United Bank Limited G.T road branch, Gujrat .During my internship I worked in customer service, AOF, Clearing, OBC. 5.4.2 Number of employees Currently in this branch of United Bank Limited have 12 staff members all the staff of the bank has high banking experience and well educated that is only reason for good banking performance of this branch. Branch manager (Syed Farrukhsaghir) has the twenty five year of experience they have the banking knowledge. Customer Service Manager (Shehzadmehmood) who did b.com and has banking experience of 30 year.Customer Service Representative (Shoaibiqbal) having degree of MBA and having 3 year of banking field experience. Chief Teller (Harismajeed) did MBA and 2 year of experience in banking. Universal Teller (Haroonaqbal) did B.com and having 3 year of experience. There are other seven people instead of five a security guard (Ejazahmed)and office boy (Haji ahmed) The training has been given to every new employee through proper channel. New employees of bank have been sent to the Islamabad for training in training center of UBL This training duration is two or three month. Every new employee should have got training to know the basic operation of banking field. Instead of two or three month training some time employees have sent to Regional Head Office for one or two days seminar to up to date new technology and knowledge in international market. Employees often sent to head office to know the new and necessary banking operations. If any new product is introduced in bank than employees were also send for training. Detail of number of staff, accounts, software, landing interest rate etc is given below. Staff members DESIGNATION NAME Branch manager Syed Farrukh saghir Customer Service Manager Shehzad mehmood Customer service representative Shoaib iqbal Chief Teller Haris majeed Universal teller Haroon Iqbal security guard Ejaz ahmed Office Boy Haji ahmed 5.4.3 Basic information of the branch Workload Office timing starts from 9:00 am to 5:30 pm (Monday to Friday) and 9:00 am to 1:30 pm on Saturday for customers. The work load of bank staff timing is based on daily basis. After the bank timing the staff fulfill the daily vouchers transaction and made entries on the net system and then counted cash, after matching physical and system balance put the cash in safe. The banking staff should finished their work on daily basis whether there work is short or long. Promotion system The promotion of the employees depends upon their performance. If an employee gives the continuous progress he will get the promotion from the Regional office. The promotion system depends upon the Grade system. If an employee gets the ‘A’ Grade he will get the 20% increment on its salary. Grade ‘B’ will get the 10% increment and so on. The employees will also get the promotion on bases of the experiences. If an employee continuously works in the bank he will get the promotion reward from the head office. Training of employees The training has been given to the employees through proper channel. New employee of the bank has been sent to the Regional Branch for training. If employee comes after passing the test he will be sent for management course which is the 6 months training course. Salary structure The salary structure depend upon the experience, knowledge and most important on the basis of your performance because the promotion of the employees based on employees annual performance. The average salary of staff is within fifty thousand. Accounts In UBL ketchury road branch total no of accounts are 5334 and its has 800 billion of deposit and the detail of these accounts is as follow Current Account 2060 Term Deposit Receipt Foreign Account 1753 446 Saving Account 475 1. UBL used Unibank (oracle) software for its operation 2. Landing interest rate are 20% and profit rate on saving account 5% 3. Provide different types of financing as below 3.1.1.Running finance of 500,000 just at your I.D and this called cash line 3.1.2.Provide mortgage loan on you stock and t get loan stock should be of 50% to 70 % of total loan. 3.1.3.In business line it provide above 500,000 to run your business in initial stages. 5.4.4 Details of Supervisors Mr. Osama Aziz gives me great support during my internship. He is humble and supportive and always help me in this period other staff member and branch manager also supervise and support me in completing internship. Weekly timetables 5.4.5 First week Account opening Account opening is process through which client open its account in bank. It open by fulfilling the account opening form which contain account number, date of opening, title of account, introducer’s name and address, special instruction if any, information about zakkat deduction and mode of delivery of cheque book etc. Then this filled form is submitted in bank, the bank admits the signature of the applicant and verifies the introducer’s signature.UBL opens following these accounts Current Account Saving Account Term deposit Account Foreign Account Detail of branch Accounts In UBL G.T road branch total no of accounts are 5334 and its has 600 million of deposit and the detail of these accounts is as follow Current Account Saving Account Foreign Account Term Deposit Receipt Specimen Signature Card 2060 1753 475 44 This card contains account number, title of the account and the specimen signatures of the account holder. When this form is submitted in bank, the bank officer admits the signature of the applicant and keeps this specimen card in record. Cheque book requisition slip This is requisition made by the client to the bank to issue him a cheque book. When slip is submitted in the bank, the bank as per instruction of account holder debited the account or if pays in cash. If the account is debited then party debit voucher is prepared which is actually intimation to party that his/her account has been debited and in working now. 1. Opening of an Individual Account Following are the requirement for opening of an individual account.. A photocopy of National Identity Card Filled account opening form Three photographs if the person is not able to sign An introducer who grantee the customer 2. Opening of Joint Account All above required document are needed Also in the box of special instruction it should be clearly mentioned that either only one partner signature is sufficient to run the account or all partner signatures is required. 3. Opening of an sole proprietorship account Along with the other documents, sole proprietorship declaration is also required. In this declaration the proprietor of the concern will declare that he/she is the sole proprietor of the account. Closure procedure of account The account shall be debited with the last balance Recovery of charges if any Pay slip shall be issued in favor of account holder Entry in the S/C opened and closer register SS card account opened marked A/C “closed on “ UBL received money in following accounts Current deposit (UBL business partner) PLS term deposit receipt Special notice receipts PLS saving account Current deposit Current deposit (UBL business partner This type of account allows the client to deposit or withdraw money as and when he likes. In this he can deposit and withdraw money several times in a day. Usually this type of account is opened by businessmen or organizations. On this type of account neither interest is allowed nor service charges deducted by bank. In this type of account frequently transaction are occur and no limit to bound the account holder for deposit or withdrawal. PLS term deposit (TFC) Make a wish to secure long term investment, UBL’s term deposit receipt or called term finance certificate is the smart choice, just make an investment and see your deposit grow over time. Get an attractive rate of interest consistently Profit is credited to your account after every six months Principal amount is secured Special notice deposit account If you wish to park your deposit for short time than UBL offers Special Notice Deposit Receipt (SNDR). By parking funds in SNDR Get an attractive rate of return Profit is credited to account holder every six month This type of account is to secure investment for short time In this account investment made either for 7 days or for 30 days PLS SAVING ACCOUNT PLS saving account is choice when to keep deposit in secured saving account .in this account have a limitation on withdrawal of deposit, only two time in month can withdrawal from account , 5.4.6 Second week Cash department This is the most important and sensitive department of the bank operation. No one is allowed to enter in the cash counter without the permission of cash officer. This department deal in all cash related operation like cash received, cash paid, bill received etc. in the G.T road branch all work is done manually, no advance facilities is available to casher. It has to perform following works in all days Received of cash Payment of cash Record of paid cheques Deposit receipt record Record of bills received Closing balance Procedure for cash payments Cash payment is the process in which the casher paid cash to customer against the issuing of cheque. Cheques first come to token assigner who check its account , either it has balance or not then check its signature and then give t to accountant who verify all the signature and recoding process of cheque and in last a token give to customer .customer then go to casher and cash it cheque. Cashers give cash and record it in his payment register. When cheque is come for payment special care is taken about customer signature, cheque due date, amount in figure and words. If some thing found wrong then cheque is not passed for payment. Procedure for received cash For depositing the cash in bank customer first fill the pay in slip. The pay in slip consisted the date at which cash deposit, the account no in which it deposit, name of account holder, amount of deposit in figure and in words and signature of account holder or thumb on it. Then it deposit it to casher who account the amount and record it in received cash register and put stamp of cash received on it and its signature and then give a part of it to customer. In last it gives the remaining slip to accountant to record it in ledger 5.4.7 Third week Clearing Department Every bank acts as both paying as well as collecting bank. A large part of this work is carried out through the bankers clearing house. for bank, following are the requirement of being a member of clearing house. It must be scheduled bank i.e. it is registered by State bank of Pakistan 50 cheques per day must be drawn on it for the continuously three months It must have account with State bank of Pakistan Sufficient balance according to requirement of State bank of Pakistan must be in account of that bank A clearing house is place where representatives of all bank of the city get together and settle the payment and receipts of cheques drawn on each others Normally clearing is carried out by State bank Pakistan, but in the area where state bank have no branch, National bank work as subsidiary of SBP. Function of Clearing Department to accept transfer, transfer delivery and clearing cheques from the customer of branch and to arrange for their collection to arrange the payment of cheques drawn on the branch and given for collection to any other branch of UBL or any other member or sub member of the local clearing house To collect amount of cheques drawn on member or sub member of local clearing house, sent for collection by UBL branches not represented at the local clearing house. Types of clearing Clearing department deals with the two types of clearing a) Inward clearing b) Outward clearing Inward Clearing Cheques drawn on UBL, presented to another banks or which is given to UBL agent for clearing. That one is called inward clearing for UBL. So inward clearing is outflow of funds to collecting bands reducing the balance in the clearing account. Outward clearing If suppose customer present Cheques in branch in which I did internship and are not UBL bank cheque but customers have accountholder of UBL and present it in UBL to collect the amount on its behalf know as outward clearing for branch. So outward clearing is inflow of cash from other or payee bank into the UBL branch account in clearing house and it increase the UBL balance. Procedure of Clearing At 10:30 am authorized representative of all bank of city get together in state bank of Pakistan for 1stclearing of day, where all banks made entry in clearing house register and exchange of all cheques they have of different banks, here 1st clearing ends. Representatives of UBL takes the cheques drawn on UBL these cheques are entered in the inward clearing registered and after sorting out these are delivered to respective branches of UBL. Some cheques are passed and some may be dishonored and a memo showing the reason of dishonored is attached with them. At 12:30 pm the entire representative again get together for second clearing where payment and receipt of passed cheques takes place and dishonors cheques are delivered back to the representative of respective banks. There is no physical payment or receipt of cash takes place, actually every clearing house agent(bank) have account with SBP which is debited or credited respectively with an amount equal to the amount of receipt or payment. If the amount of payment exceeds the amount of receipt the extra funds from head office are called in the form of TT’s and till that time clearing house remains open 5.4.8 Fourth Week Remittance Remittance means transfer of funds from one place to another This department perform the function of transfer of money Modes of Remittances Demand draft (DD) Telegraphic Transfer (TT) Mail Transfer (MT) DEMAND DRAFT A demand draft is written order to pay money drawn by one office of a bank upon another office of same bank, for s a sum of money payable to or to the order (specified person) on demand Demand draft can be issued to customer as well as to non customer against cash or cheque Requirement for DD The teller /officer has verify the original ID and take its photocopy and return the original ID Photocopy of ID attached with the application Procedure for issuance of demand draft Fill up the form containing following columns Date Branch Amount in figure and words Beneficiary’s details Beneficiary’s name Beneficiary’s account number Beneficiary’s ID number Bank’s name and address City Applicant’s signature Charges on DD The bank receives different types of charges from the applicant on issuance of DD which include... Central excise duty Commission Tax Postage charges After filling the applicant the customer put its signature on DD form and deposit their cash or cheque on counter. Particular of demand draft are recorded in demand draft register. Separate folio is allocated in demand draft issued register for each branch. Telegraphic Transfer and Mail Transfer Procedure for Issuance of TT Filling up of TT/MT application form Name of payee with complete address, telephone no, at drawee’s branch and name of the drawee’s branch is written on TT application The purchaser deposit amount of TT, commission and telegram charges with cash counter After depositing the cash, memo of cost is given to the purchaser duly signed by officer 5.4.9 Fifth Week Accounts Department Account department is the most important department of bank and it is the back bone of bank. The branch I did my internship has done its account related work online as well manually, but now the most work is done online at computer. Different book of accounts are maintained here. Different statement of bank are prepared here like monthly, quarterly, semi annually, and yearly financial statement are prepared here. Voucher system is the basic of this account department because its keep the record of every transaction which took place in the bank. And with the help of voucher it different entries are then passed in their individual heads account. Function of Account Department Following activities are performed by account department To prepare and maintain the voucher Updated the general ledger To prepare different types of statement Vouchers Each and every transaction which took place in bank are made through vouchers and then at closing of work it will recorded under different head of accounts and then match balance. Vouchers are of two types: 1. Debit vouchers 2. Credit vouchers These two are again divided into three sub categories i. ii. iii. Cash vouchers Clearing vouchers Transfer vouchers All transaction which are take in bank like deposit ,withdrawal of cash clearing these are done by preparing vouchers. A sheet is prepared of all these working which are passed in day are then consolidated and summarized. This sheet is called supplementary sheet. It provides help in preparing Cash book. Supplementary sheet are of two types. Debit Supplementary Sheet In which all debit cash voucher, clearing voucher, transfer voucher are included Credit Supplementary Sheet In which all credit cash voucher, clearing vouchers, transfer vouchers are included Cash Book It is maintained to keep the record of daily received and payment vouchers. Cash book is consisted on the opening balance and closing balance of day. Balance of cash book is match with all vouchers balance for correct balance. Ledger for Term Deposit Another function of account department is to maintain and up-to-date ledger books manually. Term deposit receipt or TDR ledger is updated after every month for estimated of profit on customer account. Account department has to prepare different types of ledger, with the help of these ledger accountant prepares provisional ledger, summary ledger and also statement of provisional expenses. The profit will be the expense of the branch. Updating General Ledger After recording of balance of vouchers the balance is transfer to the individual head account for updating of general ledger. Two main heads of General Ledger. One is Income account and other is Expenditure account. Separate ledger register is prepared for every individual head of account. All transaction in cash, clearing, deposit, transfer, withdrawal of cash, foreign exchange, advances are took place through ledgers. Account department prepare and update the following general ledger and other account books. Daily general ledger for expenses Daily general ledger for income Monthly general ledger for Assets Monthly general ledger of liability Format of entire above ledger is approximately same. General ledger tells about the account number, its description, and balance. 5.4.10 Sixth Week Advance department In sixth week I learned the advance work. Advance is the amount which is given by payeer to payee on promise to return it on some future date, and rate of interest is fixed on it. So in banking sector the advance is the promise that the borrowed amount is paid back in future in installment plus fixed rate of interest on it. The advance is given to person by pledging some security with banks like land with equal or extended amount pledge with bank as security for advance Types of Advances Demand Finance Cash Finance Overdraft Finance Demand finance Demand finance is that type of advance in which bank made contract with its customer that in future I will give you contracted amount for you need at some fixed rate. For this bank take security which is 100% equal or more value of the advance money. It may be in shape of stock, land or other financial instrument. Suppose customer come for advance of 5 million, in UBL, bank make contract with that customer that it will provide you the amount in future when you need and UBL charged the interest rate of 15 to 20% on providing of this advance from customer and take security of equal amount of advance from customer for safety. Cash finance. In this it will given to those which have the short term need of cash like sole proprietor, partnership company etc for meet the timely need of cash this advance UBL give only those person on whom the bank has full confidence and they are the loyal customer of bank. For this bank take security which have value of 50% or more than 50% of advance. Interest rate charge on it base on type of security, UBL charge interest rate from 15 % to 20 %. Over drafts Over draft is the advance in which bank allow the it’s loyal and most important customer to get money even if the amount actual is not have in its account that is called the over draft advance. In which bank give limit to its customer on current account to over draw the amount from its actual amount of account. For this bank charge the interest or charges on the amount that is actually over draw from account. Customer takes the full advantages of over draw of money when he needed. And when it returns the money it debits the account with amount of money. Overdraft might be unsecured or secured overdraft. Unsecured is that in which rely upon the personal security of the customer and in secured overdraft bank allow the customer that he/she will overdraw the amount from its account after providing the security to bank, security may be of Government or first class financial instrument. 5.4.11 Summary of learning Skilled I learned during internship I started my internship in UBL according university requirement. Internship gives me great opportunity to learn the practical work and apply knowledge which I learn during my MBA and in b.com. I do not know much about banking work, as I worked in different department in six week .in small period of internship staff member give their time and taught me about the banking work, I thankful to all of them .as I started my internship. Branch manager welcome me and introduce the other staff member, so I started work. First I know who to deal with customer and provide them services at our best. I also to get knowledge of opening of different types of accounts, its documentation and other procedure of account opening. As bank basic financial services which include loan, deposit of customer, so in next step they teach me who to get money from customer and recorded it in ledge and provide the customer the deposit slip. Clearing in these day of banking become the important part of banking in clearing I basically get skill that the cheques which are not that branch. It may be of other bank or other branch of same bank. So on customer request send it by crossing to that branch of which it have. Also got knowledge of Making Demand Draft, Pay Order, and Telegraphic transfer and pass entries of it in relevant register. During my internship all staff member help me to fulfil my internship specially Mr. Osama Aziz who is so kind and corporative, he tried his best to give knowledge he have to me to know the banking field in that short time period so I got skill to deal to customer as quickly as possible and also know procedure to open account, got skill of clearing and outward billing collection, also work with cashier. What kind of responsibilities you have undertaken during the internship period? I worked in account department, also work in deposit field they also teach me who to deal with customer, and also did responsibility in clearing of cheques, demand draft pay order. In first week I work as who to open account of different types like Opening of an Individual Account, Opening of Joint Account,Opening of an sole proprietorship account and also to work which activities carry when close the account of customer. In second week I worked in deposit department and got knowledge of receiving of money in different account like Current deposit (UBL business partner), PLS term deposit receipt, Special notice receipts, PLS saving account, and Current deposit and know different rates at which bank give loan to its customer and businesses for their financial needs. It aware me that which person required what type of account according to its needs. I also work in remittance department and got ability to handle the different modes of remittance. Remittance modes include demand draft, Telegraphic Transfer (TT), Mail Transfer (MT). who to fill the form ,complete name ,address, amount , branch name where it send ,charges of its etc and in final make entries of remittance in remittance register. In next step I work in clearing of different financial instrument like cheques, its procedure and function of clearing., I have learned how when your client give you another bank or branch cheque and request to transfer that fund from that bank or branch to its account. It work without involving cash through “State Bank’s clearing house” or we can say in other that cheques which cannot be cash at the cash counter of the bank. I have also learned about account department and functions of account department..It is department in which all records and activities of all days are recorded in general ledger. It is the most important recording register of banking activities of all day of all individual activities like cash deposit , and written of cheque and get deposit from account. in this department also maintain the different register like clearing, demand draft order, pay order .Account department also maintain voucher of different transaction which bank made in whole day and record of it in its relevant register like deposit voucher and credit voucher. In last of my internship I work in advance department. In this period in teach who to make loans like loan at demand in this loan provided to customer at its demand when it needed, interest is charged according to set rate of loan annually. Loan are giving by putting some security against loan like property, gold or some financial instrument have worth equal of loan or exceed of it. As I done my internship in bank because I have future plan to join bank so doing worked as internee in bank .so it increased my skill and helpful for me in future when joining bank. I know to deal with customer which will help me in future who to satisfy customer because the customer satisfaction is the main focus of bank in these days. It introduce me the environment of banking sector and aware me the skill which are necessary for working in bank. Banking sector are growing so lot of chances in this sector to develop my future career. So in future as I learn some about banking so easy for me to learn more quickly when join banking sector. How do you think the internship activities that you carried out are correlated with your classroom knowledge? Yes the basic of accounting which I have learned during my study have help me in doing internship so basic of accounting are as same as we learn in our study, while the different management theories and policies which were taught by our teacher not similar, every manager has their own some policies or obey the policies developed by top level .we read about sharing of knowledge, but in practical no such policies are carried out by manager they only instruct according to top management policies, in short some book knowledge are carried out but most of not 6. Concluding part of the Report 6.1 Conclusions During my internship I have learned lot of thing about bank as I have limited experience so I try my best to learn from my internship and observe the things in my internship period so I things I learned and observe present in conclusion Organization in which I did internship is commercial bank which provided the different commercial facilities to general public. It provided lot of services to general public, they tried their best to satisfy the customer but lot of flaws in management practice like hierarchy level is upward to downward. Upper management just give order to lower management and not concern from them so policies are not properly apply they must take suggestion from lower management because they deal directly with customer. Centralization of authority and staff is bounded to obey according to instruction. There is lack of coordination among different department and employees also, communication level is very poor. Customers are not fully satisfied with services or delivery of services. Numbers of employees are low in branch so that of it Burden of work over employees, they have to work till late from working hours. Branches are not up-to-date with advanced technology. So because of it delivery of services to customers is not quick. Very important department of bank, but focus on it to improve its services and provide latest technology is very slow. Number of cash counter is less than other new and up-todate banks, so casher face lot of problems and have lot of work burden on it and it cause some time that give more amount then actual it happen in rush hour when number of customer is too much and one casher for all. They have no counting machinery in all branches which help them in counting of currency. Fake currency notes also problem for casher .it come from other branches or it may be happen in rush hours period, so UBL management must up-to-date its cash department with latest equipment for the help of its employees. The depositing procedure is old; there is no improvement in process which gives relaxation to customer. Account opening form is not well designed it restricted the accommodation of more than two person. Withdrawal of cash is not up to dated it using manual process no advance equipment is used for verification of signature of account holder. In case of special order cheque when necessary of specific person is present at time of withdrawal, some time give to another person on its behalf because of fear of loss of that customer or some time strong relation also works in this case. Clearing is not well up to dated when cheque of other branch is send not know have balance in it or not because different banks are not interrelated with each others. Some time signature is not match or return memo is not filled properly or wrong stamp put is some cases. Credit department is most important department in these days for bank. It generate extra fund for bank in shape of deposit and loan giving. But proper care is not carry in giving of loan or other financial assistance which cause loss to bank. Like no proper security is pledged for loan giving or not properly investigated that person to whom loan is giving is credible or not so in last it become bad debit for bank like in case of credit card bank face lot of problems in recovery and also in car financing.lot of money of banks become bad debit. So manager required extra skill and knowledge for it to perfectly deal this. Marketing of its new services is very poor and say that in marketing UBL is very slow. Employees are not properly deal with customer some time their behavior is not good with their customer. They do not know the latest techniques of marketing. Lack of the promotional activities and Put no attention on the overall environment of bank or to improve it. Their no properly security system in bank, no security camera and security alarm in case of emergency, private security guard is used who is not properly trained so risk of robbery all time. 6.2 SWOT Analysis: Strengths UBL with an integral network of over 1400 branches nationally and 19 overseas branches give direct access to a comprehensive range of better banking facilities to help you to monitor your business internationally. UBL have also overseas branches in QATAR, UK, USA, YEMEN and BEHRAIN UBL is the pioneer in banking sector and providing the commercial services to its customer and it try its level best to provide the latest product and services to satisfy the customer by making good planning and strategies like introducing Islamic banking and online branches facility. UBL has 620 billion of assets, capital reserve of 120 billion and solid track of 50 years. UBL has restructured during his 50 years of banking to provide the better services to its customer as well as the improvement of its employees and management team to better work for the increasing of bank efficiency UBL CONTONUOUSLY IMPROVE ITS PRODUCTS AND INTRODUCE THE NEW AND INNOVATED PRODUCTS AND SERVICES IN MARKET FOR THERI CUSTOMER TO PROVIDE BETTER SERVICES TO SATISFY THEM REGULARY IMPROVE ITS EMPLOYEES SKILLS AND THEIR KNOWLEDGE WITH MARKET FOR THEIR WORKING INCREASE THE LEVEL OF RESOURCE MOBELIZATION BY INTRODUCE THE NEW ACCOUNTS FOR SAVING WHICH FULFILL THE BASIC DEMAND OF CUSTOMERS UBL provide the complete range of banking products and services to its customer including retail banking, corporate and institutional banking, trade and consumer finance Improve quality services by apply new technology Now mostly all branches are inter links with each other and with head office directly which increase the level of efficiency It has been decided to introduce the concept of “TRADE FACTORIES” where all the trade related process will be centralized. In this case the customer account could be located at any branch, but all the approvals, document, negotiation; record keeping will be carried out at the trade factories. Three such centers are being established at Karachi, Lahore and Islamabad. UBL Sahara free insurance cover of up to 1 million UBL was pioneer in introducing an important service to customer where in customer are able to get their rates by dialing fax number in the bank. This has proved a very successful idea. UBL Brought Humrah Rewards Program to make you a winner every time. Reward for you to win and enjoy on the move within your city or travelling up country, UBL Humrah Rupee Traveller Cheques are the most secure and convenient way to carry cash and travel with peace of mind UBL Uni Saver account is an innovating way of serving your banking needs. Be it trade, business or personal fiancé, the UBL Uni Saver allows you maximum flexibility, yet gives you optimum returns. Provide the 24 hours to customer the tele verification of Humrah Travellers Cheque through its customer help line service. Major bank in the getting deposit and providing advances Made complaint network on its web site at which customer are sending their complaints, and respond on that complaints is immediately. UBL Uni Saver concept is introduced to attain and satisfy customer. UBL aim is to provide the services which best satisfy to their customer very well. WEAKNEES Most of employees are not well qualified and do not have right professional attitude that may hinder UBL to perform up to the mark and to satisfy their sophisticated client. Most of them are graduates and under graduates Management offer low profit on profit and loss account approximately 7% before deducting tax. The other banks offer more than this Employees involve in internal politician which effect on efficiency delivery of services Very few employees are honest to their work as well as with management, they often do not care the customer and to they do not pay full attention on providing better services to them In most case the banker give favour to those customer who have huge some of deposit in bank or they have direct relation with the banker and neglect to those who have no large deposit or relation with them. I myself noticed this one during my internship period Networking and advance technology is not latest, and also not available to every employees and even they use old version of program in their system, system is not up to dated as well Most of loan are not covered because of pledging security is not sufficient for the amount of loan, so it become bad debts Not using modern techniques of banking All branches are not fully computerized till OPPORTUNITIES The banking sectors has been entered into new era of advancement with innovated products and online facilities which other simply don’t have Government of UAE has declared a free industrial estate which is having its own free port, in which free tariffs are to be imposed. UBL has invested in this area by opening new branches there. Commercial bankers can become the single source of financial services for small business, but to do so they must invest in IT that designed to provide products and services to small business. They should look at their branches and web based deliver. UBL the third largest bank can do well in Pakistan UBL has large number of branches in all over the country. But these are not well equipped with latest and advance technology and instruments. So to capture market the bank must launch the new and innovate products and services to take the large share of market and maintain their position in market and equipped the branches with latest technology. THREATS New banks like ASKARI. FAYSAL, ALFALAH can cause the loss of the market share of UBL because these banks are providing better services and these are fully equipped with latest technology so the delivery of services is better than UBL New banks are introducing new and innovated products and they are transfer their traditional banking facilities to modern banking operation, because of keeping in view the changing demand of time and emphasizing more on personalized services, electronic funds transfer, sophisticated financial products such as electronic banking, auto teller machines and evening banking. This is great threat for UBL if it not change according to demand of customer No stable Government in Pakistan change in Government mean change in policies so not provide the smooth way of success Current condition of Pakistan is not suitable for investment so it cause low profit of bank High inflation rate in Pakistan cause the lower of saving and investment Concept of evening and Sunday and online banking is big threat for UBL, and UBL is behind from this so face problems Freezing of foreign currency account by Government of Pakistan is also fear for bank. SUGGESTIONS Bank should hire new enthusiastic, energetic and hardworking staff with professional abilities and knowledge UBL’s top management must adopt such strategy, that will helpful in eradication of internal politics The bank should make some strategies to educate the employees and general public about the bank’s services and products Introduce the process or team who investigate on the creditors worthiness, so that in future the fraud can be stopped and reduce the fund to become bed debits In bank must be a counter at which only provide the information to customer for their problems and services In order to check the efficiency of employees must be regular visit in all branches by management team. Regular training and seminar are launch to improve the knowledge and skills Banks is not fully equipped with latest machinery like auto teller machine, latest system, DSL and proper security system Not deal in opening of letter of credit and to deal in export and import facilities, so bank should hire export and import staff for such types of activities No proper marketing is done by manager and no strategies are applied for effective working. All the focus is on attractive the deposit no focus on other facilities or services other banks have ,now a days are introducing new scheme of Corer Patti by HBL and Prize on Traveler’sCheque by MCB 8. References: Ubl G.T road branch www.google.com ubl.com.pk United Bank Ltd. reported 3rd quarter 2010