Internship Report on UBL (284)
Supervised By: Mr. Anees Khattak
Prepared By: Muhammad Adnan
Reg # fa09-mba-22
Mailing Add: H. # BXII/133 Near Power House,
Attock City
Mob # 0313-5414925
Tel: 057-2603458
Department of Management Sciences
COMSATS Institute Information Technology
Attock Campus
DEDICATION
“I dedicate this work of mine to my Teachers, My Parents and to all My Friends, who truly help and guide me in completing this project. “
ACKNOWLEDGEMENT
First of all, I thank my respected teachers for providing me comprehensive knowledge about Commerce Courses and also for providing me the opportunity to complete my Internship Program in UBL to enhance my practical knowledge about banking sector of Pakistan. I am also indebted to the followings because without their help, I would not be able to achieve this practical knowledge.
PREFACE
Master of Business Administration (MBA) is a program in which we studied about business. In Pakistan the banking sector is at the maturity stage and banking sectors are the best institutes in which we are easily understand the practical experience. MBA gives us an opportunity to touch the practical experience about business as the internship. The Internship program is an important part to give students an opportunity to have experience of practical field. Unless and until the students experience the novelty of practical work, their knowledge of what they study in theoretical courses remains incomplete. The most important point in an Internship program is that the student should spend their time in a true manner and with the spirit to learn practical orientation of theoretical study framework.
This Internship Report is on my Six weeks practical training at (UBL)UNITED BANK LIMITED ATTOCK CITY. In this Internship Report I have tried to give details about the United Bank Limited, working and the functions of different departments of the bank.
MUHAMMAD ADNAN
CONTENTS
- Executive Summary………………………………………………………. 8
- Introduction to the Report………………………………………………… 9
Purpose of Report ………………………………………………………… 9
Scope of Study ……………………………………………………...…….. 9
Limitations of Study ………………………………………………….……. 10
Methodology of Study ……………………………………………….……. 10
- Objective of Studying the Organization…………………………………. 11
- History of Banking ……………………………………………...……...….. 12
- Commercial Banking in Pakistan ………………………………….…...….15
- Overview of the Organization
History ………………………………………………………………………. 17
Nature of the Organization …………………………………………...…… 19
Business Volume ……………………………………………………….….. 19
Number of Employees ………………………………………………….….. 20
Product Line …………………………………………………………….…… 20
SWOT Analysis ……………………………………………………………… 21
PEST Analysis ……………………………………………………………….. 24
Business Plans ………………………………………………………....…… 27
- Organizational structure
- Main offices ……………………………………………………….….. 30
- Organization Hierarchy ……………………………………….…….. 31
- Comments on the organizational structure ………………….……. 35
- Learning as an Internee from the Management Side ………….… 40
- Structure of the Department/s you have worked in
- Number of employees working in the Department ……………… 43
- Product lines ………………………………………………….……… 43
- Departmental operations …………………………………………… 48
- Functions of the Department
- Job/Work/Tasks system of the organization ……………………… 78
- Decision-making environment ……………………………………… 78
- Critical analysis of the theoretical concepts relating to practical experiences i.e. relate the theoretical concepts with your practical experience during your Internship with the Department
- Common-size analysis of consolidated balance sheet ………… 79
- Common-size analysis of consolidated Income Statement ….… 80
- Ratio Analysis …………………………………………………….…. 82
- Qualitative Analysis ……………………………………………….… 86
- Future prospects of the organization/Recommendations for future learning ……………………………………………………………..… 88
- Short-falls/weaknesses of the Department ………………………….… 89
- Conclusions …………………………………………………………..…… 90
- Recommendations for improvement ………………………………….… 91
- Bibliography ………………… …………………………………………..… 94
- Annexes …………………………………………………………………… 95
EXECUTIVE SUMMARY
This is an internship report regarding the different products of UBL. It starts with an introduction about Banking followed by the introduction of UBL. It gives a briefing about all the financial products of UBL.
This report also includes the different features of these products. All the Services provided by UBL has also been discussed and explained along with the strength and weaknesses of the organization.
This report shows and internal architecture of the working of the UBLBusiness. It gives a detail about the supporting department that has helped the business in their daily working.
Also it discusses the objectives, policies of the organization. There are also some suggestions/recommendations for UBL.
INTRODUCTION OF REPORT:
Students of MBA studying courses of Master degree in Business Administration are required to undergo an internship program of Six Weeks duration. This is an essential academic requirement. The internship is followed by comprehensive report writing, required to submit to the supervisor of COMSATS Institute of Information Technology Attock Campus. I did my internship in United Bank Limited Attock City Branch (284).
Purpose of Report:
The purpose of the study is to work in real life situation and learn banking practice by doing. In this context its objectives are:
- To analyze banking operations i.e. operational analysis, financial analysis.
- To develop concrete and feasible recommendations.
- To improve report writing skills.
Scope of Study;
The study is confined to banking operations. An attempt, along with all its limitations, to collect financial data and general statistics of the bank has been made. Keeping in view the purpose of the study, which is to make an acquaintance with practical doings in the bank, this seems a comprehensive effort.
Limitation of Study:
It is to admit that the study attempts only those aspects, which are closely relevant to the purpose of the study. Facts and figures, which otherwise might be equally important, but not having a direct bearing on the conclusions arrived at this study, have been ignored.
Methodology of Study:
Both primary and secondary data were used in compilation of the report. Methodological tools used were:
- Primary Data:
Personal Observations.
Discussion with Bank Personnel.
- Secondary Data:
Brochures/ Manuals of the bank.
Annual Report
Bank internship reports on UBL available in library.
Journals, newspapers and books.
Internet.
OBJECTIVE OF STUDYING ORGANIZATION:
Organizational studies, organizational behavior, and organizational theory is the systematic study and careful application of knowledge about how people - as individuals and as groups - act within organizations. Whenever people interact in organizations, many factors come into play.
The purpose of the study is to work in real life situation and learn banking practice by doing. In this context its objectives is to analyze banking operations i.e. operational analysis, financial analysis and doing practical work in banking sector by applying theoretical concepts learned during educational period.
HISTORY OF BANKING
“Bank is a pipeline through which currency moves into and out of circulation.”
Bank accepts deposits and repays cash to its customers on their demand. The Bank borrows money at a lesser rate of interest and lends it to the borrowers at a higher rate. It is thus a profit-lending concern. Bank cannot lend all the money that has been deposited with it. It has to keep a certain portion of the total deposits in cash with them in order to meet the cash requirements of the individuals and business concern.
Banking History
Word Bank is said to be derived from the words “Bancus” or “Banque”which means bench other authorities hold the opinion that the word bank is derived from the German word “Back” which means ‘joint stock fund’.The history of banking is traced to as early as 2000 BC. The priests in Greece used to keep money and valuables of the people in temples. These priests thus acted as financial agents. The origin of banking is also traced to early goldsmiths. They used to keep strong safes for storing the money and valuables of the people. The persons who had surplus money found it safe and convenient to deposit their valuables with them. The FIRST STAGE in the development of modern banking, thus, was the accepting of deposits of cash from those persons who had surplus money with them.
The goldsmiths used to issue receipts for the money deposited with them. These receipts began to pass from hand to hand in settlement of transactions because people had confidence in the integrity and solvency of goldsmiths. When it was found that these receipts were drawn in such a way that it entitles any holder to claim the specified amount of money from goldsmiths. A depositor who is to make the payments may now get the money in cash from goldsmiths or pay over the receipt to the creditor. These receipts were the earlier bank notes. The SECOND STAGE in development of banking thus was the issue of bank notes.
The goldsmiths soon discovered that all the people who had deposited money with them did not come to withdraw their funds in cash. They found that only a few persons presented the receipt for encashment during a given period of time. They also found that most of the money deposited with was lying idle. At the same time, they found that they were being constantlyrequested for loan on good security. They thought it profitable to lend at least some of the money deposited with them too the needy persons. This proved quite a profitable business for the goldsmiths. They instead of charging interest from the depositors began to give them interest on the money deposited with them. This was the THIRD STAGE, in the development of banking.
By experience the banks came to know that they could keep a small proportion of the total deposits for meeting the demands of customers for cash and the rest they could easily lend. They allowed the depositors to draw over and above the money actually standing to their credit. In Economics terminology we can say that they allowed the overdraft facilities to their depositors. This was the FOURTH STAGE, in development of banking.
When every bank issues receipts and most of them allowed the overdraft facilities, there was then too much confusion in the banking system. The banks in order to earn profits could not keep adequate reserves for meeting the demands of the customers for cash. The failures on the part of the bankers to return money caused widespread distress among the peoples.
In order to create confidence among the people, steps were taken to regulate the banking organization. A conference was held in Nuremberg in 1548. It was decided that a bank should be set up by the state, which should streamline the banking organization and technique. The first central bank was formed in Geneva in 1578. Bank of England was established in 1694. The responsibility of issuing of notes is now entrusted to a central bank of each country.
COMMERCIAL BANKING IN PAKISTAN:
At the time of partition total numbers of Banks were 38 only. Out of these Banks the Pakistani Banks were only 2 , Indian Banks 29 & Exchange Banks were 7. The total of deposits of Pakistani Banks was Rs.880 Million. & advances were Rs: 198 Million. According to banking companies ordinance Banks are the companies, which transacts the business of Banking in Pakistan.
Commercial Banks have constituted the most important [part of the intuitional credit in the economy of Pakistan. Being the largest source of credits, Banking Industry is a pivot of whole the economic activities in Pakistan. Section 37(2A) of State Bank of Pakistan Act 1965 lays down that the Banks must have paid-up capital & reserve of not less then Rs: 5 Lac & fulfilling certain other requirements for declaring as “Scheduled Bank”.
At the time of independence Bank services was badly affected. But with the passage of time these are improving. The government of Pakistan nationalized all Banks in early 1974. This act was done to minimize control of few hands over banking. But this step was proved e futile for the Banking in Pakistan. So the Govt. had to revise its decision in1990. Two Banks (Allied Bank Of Pakistan Limited & Muslim commercial Bank Of Pakistan Limited have been denationalized. Since then Banks were working well. Now slogan of the Banks is to serve their customers in the best possible manner.
Professor Berton:
“Banks are the guardian & distributor of money “.
Similarly we can say that it is a pipeline thorough which currency moves into & outside the circle. Banks accept deposited of money and repay it on demand. Bank borrows money at lesser rate of interest & lends it at higher rate of interest. In this way Banks earn money. Bank do not lend all money they collect, they keep certain portion of it as reserve to meet the uncertain demand of the customer.
OVERVIEW OF THE ORGANIZATION:
History of UBL
The decision to establish UBL was taken in June 1959 and the company was registered on July 24, 1959. United Bank Limited started the operations on 7 November 1959 with its first branch namely McLeod Road now I.I Chunrigar Road at Karachi. On 9th November 1959 the Gazette of Pakistan notified and included UBL in its list of scheduled banks operating in Pakistan. The first president of the UBL was Mr. I. I. Chundrigar. Most of the branches of Union Bank Ltd. were merged into UBL to work as UBL’s subsidiary .The head office was at Dhaka.
With its shortest span of time UBL emerged as dynamic and large international organization. In 1969 the Management of Union Bank Ltd. Incorporated in former east Pakistan, was handed over to UBL, which was later emerged with UBL in early seventies.
The Bank continued its operations as private banking company until 31st December 1973 when it was nationalized, in the large nationalization process in the government of Zulfiqar Ali Bhutto, along with other banks operating in the country and other two banks namely Pak Bank of former East Pakistan and Commerce Bank Ltd. Were merged with UBL.
A Bank, like the society it serves should be dynamic as banking is about people customers with their needs and opportunities and staff with skills, experience and resources. UBL has shown dynamism since its inception. There have been many changes in the structure, functions and the services provided. These changes reflect the changing requirements of our developing economy as a whole and those of Industry, Commerce and private Individuals.
On October 19th 2002, biggest event occurred in the history of UBL. As UBL was privatize. The Government handed over the management of UBL, the third largest bank of the country to the successful bidder – Consortium of Abu Dhabi Group (UAE) and Bestway Holding Ltd. (UK). The sales agreement for the transfer of 51% shares was signed by Privatization Minister Altaf M. Saleem and Bestway Holding, Sheikh Nahayan Mubarak Al Nahayan at a ceremony. This event was declared as a “New Journey for UBL”.
On May 8th 2004, Atif Bukhari took over the charges as new Chief Executive Officer of UBL from Amar Zafar Khan, who served UBL for more than seven years. UBL officially announced the appointment of Atif Bukhari as its CEO. Bukhari was previously Senior Executive Vice President (SEVP) and Group Head, Corporate and Investment Division of Habib Bank Ltd. He was also a member of the HBL Management Committee.
In the view of highly impressive growth and development achieved during its 46 years of experience, UBL has come to be accepted as one of the most progressive and dynamic components of the banking industry in Pakistan.
Nature of the Organization:
The UBL is under the ownership of two very strong (financially) group (The Abu Dhabi Group & The Best way Group) and The Deputy Chairman of the UBL is Sir Mohammad Anwar Pervaiz who is the leading role of Best way Group. So UBL is acted as a centralized bank.
In 1986, the organizational structure of domestic operations of the bank was reformed anddecentralized on the basis of provinces. As a result provincial headquarters were established at Karachi, Lahore, Peshawar and Quetta in order to meet the needs of sanctioning loans and other facilities to the trade, industry and agriculture of each province. Azad Kashmir was serrated from NWFP and made separate region.
UBL is a commercial bank. Commercial Banks have constituted the most important [part of the intuitional credit in the economy of Pakistan. Being the largest source of credits, Banking Industry is a pivot of whole the economic activities in Pakistan.
Business Volume:
Number of Branches:
UBL has a large network of branches, which extends to the remotest areasof the country. In December 1983, there were 1623 branches whereas in 1974 ithad only 1238 branches and in October 2003 these figures show total number of1007 branchesUBL has been very active in increasing its overseas branches network. Thefirst foreign branches were established in London in 1963. Now UBL hasbranches in Bahrain, Qatar, Saudi Arabia, United Arab Emirates, Yemen ArabRepublic, UK Switzerland, Egypt, Oman and The United States. These branchesare playing a significant role in channeling home remittances and foreign trade ofPakistan.
Subsidiaries:
UBL has four subsidiaries, namely:
United National Bank Limited (UNB), UK
United Bank AG (Zurich), Switzerland
Number of Employees:
The number of employees with their designations working in UBL 284 branch are listed below:
Mr. Mukhtar Hussain (Branch Manager)
Mr. Abid Farooqi (Customer Service Manager)
Mr. Irshad Farooqi (Supervisor Funds Transfer)
Mr. Ehtesham Shabir (Customer Service Representative)
Mr. Iqbal Khattak (Chief Teller)
Ms. Sumaira Naeem (Universal Teller)
Product Line:
UBL, where you come first
Consumer Banking
UBL Address
UBL BusinessLine
UBL CashLine
UBL Credit Cards
UBL Drive
UBL Money
Commercial Banking
Agriculture Products
Small Business Schemes
Investment and Saving Accounts
UBL Basic Banking Account
UBL Business Partner (Current Account)
PLS UniSaver
PLS UniSaver Plus
UBL Rupee Transaction Account (PLS Saving)
UBL UniFlex
eTransaction (Current Account)
Complementary Services
Insurance Certificate
UBL Net banking
UBL e-statement
SWOT Analysis:
SWOT is useful tool for providing a framework for analysis of an organization. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. It is a common approach to make assessments in terms of internal and external environment of the organization, and to formulate strategies analyzing its internal strengths and weaknesses, external opportunities and threats, coming up is the SWOT analysis for the UBL.