Ali Raza by Syed Zia

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INTERNSHIP REPORT ONUNITED BANK LIMITED

SYED ALI RAZA963

Submitted in partial fulfillment of the requirements for the degree of bachelor of BusinessAdministration

At

National University of Modern LanguagesIslamabad, Pakistan

December 2009

Copyright by Syed Ali Raza, 2009


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National University of Modern Languages

Faculty of Management Sciences

It is hereby certified that the report has been thoroughly and carefully read and recommended

to the Faculty of Management Sciences for acceptance of Final Internship Report. by SYED

ALI RAZA, Roll No. 963, Session (Jan 2006 to Dec 2009) Morning, in partial fulfillment of

the requirements for the degree of Bachelor of Business Administration of National

University of Modern Languages Islamabad.

Dated

.

Supervisor Name ___________________________

Supervisor Signature ________________________

Panel Member Name ________________________

Panel Member Signature______________________

Head of Department: _____________________

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ACKNOWLEDGMENTS

I thankAlmighty Allah who bestowed upon me the knowledge & courage to

fulfill these tasks. No efforts in making this report are definitely mine they are the gift,

blessings & mercies of Mighty Allah.

I owe a debt of gratitude to my university national university of modern languages & the

entire professional faculty specially my supervisor Muhammad Zia-ur-Rehmanwho was so

generous with his time & expertise to make me a professional business student. My deep

appreciation & heartiest thanks goes to all of them for their careful attention, unfailing

courtesy, and professional support.

This was my first chance to study the work and management of an organization so closely

where I came across real joy of proud amicable employees as their promotions and trusted

retirements. I have come across the practical approach of work and policies related to my

subject. The whole experience gained during my internship period related to my subject.

I hope UBL Bankwill stand by its leading role in banking sector and will move for further

distinguish marks.

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DEDICATION

I dedicated to my parents who always love me

and all of

Those who care about me and have soft corner

for me in

their Heart.

Executive summary

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Banking started in Pakistan after the bold and emergent decision of formulation

of SBP on July 30, 1948. Thereafter this sector has witnessed enormous growth. In 1974

banks were nationalized, in the hope that new era of growth could be achieved through it.

However the process is reverse since 1991, up till now UBL, ABL, & MCB have been

privatized and HBL is the process of its privatization.

UBL offers its services through a wide network of branches all over Pakistan & overseas

branches as a part of global network. UBL has taken progressive steps & has introduced

innovative products and services to provide customers a variety of banking and financial

services.

SWOT stands for strengths, weaknesses, opportunities & 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.

Recommendations are considered to be the most important part of an internship report,

without which no report is considered complete and meaningful. This part of the report is

based on the previous sections i.e., review and analysis.

Table of contents

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Title page #

Acknowledgment.i

Dedication....ii

Executive summary.iii

Table of contents.iv

Chapter 1 Introduction

1.1 Banking History......................................................................................................01

1.2 Introduction of UBL Bank Limited........................................................................02

1.3 Mission Statement..................................................................................................03

1.4 Vision Statement.....................................................................................................03

1.5 Core Values.............................................................................................................03

1.6 Objectives Of UBL Bank Limited..........................................................................04

1.7 How Challenges be Delivered................................................................................05

1.8 Products and Services.............................................................................................05

1.9 Field of Activities...................................................................................................07

1.10 Corporate information..........................................................................................10

Chapter 2 Departments

2.1 General banking department...................................................................................13

2.2 Privilege banking department.................................................................................26

2.3 Credit department...................................................................................................28

2.4 Foreign currency department..................................................................................31

Chapter 3 SWOT Analysis

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SWOT Analysis............................................................................................................33

3.1 Strength..................................................................................................................33

3.2 Weaknesses............................................................................................................35

3.3 Opportunities..........................................................................................................37

3.4 Threats....................................................................................................................37

Chapter 4 Internship Experience

Internship Experience...................................................................................................39

4.1 What I learn............................................................................................................39

4.2 Critical Analysis.....................................................................................................52

4.3 Things I wish had been known to me before starting my internship.....................55

4.4 Skilled I used and newly learnt skills.....................................................................56

4.5 Things I want to do differently in future................................................................57

4.6 What I think my fellow student should know about the work I did.......................57

4.7 My internship's influence on my career plan.........................................................57

Recommendations ..58

Conclusion...................................................................................................................60

References....................................................................................................................61

Annexes62

Chapter 01

Introduction

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years with the development of UBL Bank, which is not only defining priorities and focus

of the banks, but also threatening the domination of traditional players.

Our mission is to serve all your corporate needs and ensure your full satisfaction through

product innovation, personalized banking, and top notch service.

The CGB department of UBL defines corporate banking in Pakistan.amongstt the local

banks UBL CBG is the pioneer in providing innovative solutions to its diversified and

satisfied customer base.UBL CBG is considered to be a major player in the financial

market of Pakistan.

The corporate banking group focuses on attracting and servicing large portfolio

customers. Our forte is providing exemplary customer service using the single window

concept & product superiority. The relationship managemaaent team manned highly

qualified individuals from the industry has steadily expanded our customer base &

continues to enhance our relations with our esteemed clients

an innovative team of professionals having extensive experience of Corporate Banking

gives UBL's appetite for large exposures coupled with dedicated Structured Finance Unit,

and it the right platform to succeed in todays competitive and a demanding environment.

The success of CBG has been established from the fact that UBL received the 'No.1

Euro-money 2000' Best Local Bank award and recognized it to have out performed all

other banks. In year 2000, UBL was also voted as the best Corporate Bank by the

customers of a major foreign bank in a survey. Aggressive marketing combined with

professionalism has led to an increase in UBL's market share with top corporate

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customers and in some cases replacing Foreign Banks. Presently, its portfolio includes

the quality names in the country, which were initially confined to foreign banks only.

1.3 Mission Statement

To be the leading private sector bank in Pakistan with an international

presence, delivering quality services through innovative technology, an effective resource

management. In a modern and progressive organization culture of meritocracy, maintain

high ethical and professional standards, with providing enhance value to all our

stakeholders, and contributing to society.

1.4 Vision Statement

To be the leading bank in the region.

1.5 Core value

The intrinsic values, which are corner stones of UBL corporate behavior, are:

Commitment

Integrity

Fairness

Team-work

Service

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1.6 Objectives of the UBL Bank Limited

As UBL Bank looks ahead to the future by moving through the decade of the 1990's its

efforts are guided by a broad framework of corporate objectives, which are as follows:

UBL is committed to its identity of security & trust and will endure to uphold

this image at all the times.

It will endure to provide its customers with as many creative financial services

and products, as is required. As today customer demands a package of services

suited to his particular business, UBL plans to develop different and new products

to cater to the customer's demand. UBL Bank has they strength to be a market

leader.

Bank will keep standing and by and develop, its human capital base. It is planning

to provide all the required training to its staff towards achieving a higher level of

professionalism. UBL will continue striving to build a strong, motivated and

dedicated work force where total commitment will be towards customer's

satisfaction and wealthy growth of organization.

UBL Bank will endure to provide a competitive return to its shareholders and will

strive to maximize its share value. The enhancement in its capital and returns will

be a continuous process.

UBL Bank is interested in being one of the most financially viable institutions. So

it lays great emphasis on gradual building up to a healthy deposit mix. In the years

ahead, the bank will enhance its focus on growth through operational efficiency,

creating strategic alliances developing well-structured networking system

innovating new products, enhancing marketing and sales efforts improving

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Smart Cash

Ask Car (Car Finance)

Ask Card Travelers Cheques

Ask Power

Value plus

UBLMaster Card

Global Acceptability

24-Hour Customer Service

Low Service Charges

Zero Loss accept liability

Supplementary Cards For Your Loved Ones

Cash Advance Facility

Balance Transfer Facility

Free Travel Insurance

Rawal Lounge Facilities

Discount At Avari Hotels

Agriculture Banking

UBL Kissan Agriculture Finance Program

UBL Kissan Ever Green Finance

UBL Kissan Tractor Finance

UBL Kissan Aabpashi Finance

UBL Kissan Livestock Development Finance

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http://www.askaribank.com.pk/askarismart.phphttp://www.askaribank.com.pk/askarismart.php


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UBL Kissan Farm Mechanization Finance

UBL Kissan Farm Transport Finance

Islamic Banking Services

Islamic Corporate Banking

Islamic Investment Banking

Islamic General Banking

Islamic Consumer Banking

1.9 Field Of Activities

The bank basically works under three groups named as:

Corporate Banking and Financial Institutions Group

Retail Banking Group

Operations and Credit Group

1-Corporate Banking and Financial Institution Group

This group is responsible for serving the needs of large corporate clients in

public and private sector, managing correspondent banking relationships and undertaking

money market transactions. The group is organized in three divisions namely

Corporate and Merchant Banking Division

International Division

Treasury

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2-Retail Banking Group

Retail banking group was formed in 2000, this group is responsible for

serving the needs of the retail market. Focusing on individual consumers and small and

medium size enterprises, for purpose of product differentiation, the group is managed in

three business arms.

Investments products unit

Asset products unit

Credit cards division

3-Operations and Credit Group

A support function group mainly responsible for development of systems and

procedures, process re-engineering, automation and credit management. The group is

organized in three divisions:

System and Operations Division

Electronic Technology Divisions

Credit Division

Human Resource Division

Strategically, perhaps the most important division at the head office is

responsible for human resource management, including recruitment staff training and

evaluation. The division also handles matters relating to administration. This division

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operates on future oriented strategy focusing on employees personal and professional

growth.

Staff development activities are geared to enhance their capabilities for applying the

knowledge and facts towards development of practical situations. Staff is given on the job

as off-site training in diverse areas of banking and management. Our hiring philosophy is

based upon meritocracy and selecting the right person for the right job. We lay greater

emphasis on employees honesty and integrity besides technical competence. Candidates

are selected through well defined and systematic selection procedure.

Finance Division

Responsible for bookkeeping and accounts, this division at head office,

prepare all financial return and the MIS through its management-reporting wing. The

division is actively involved in preparing market comparative analysis, consolidation of

bank's budgets, its monitoring and constant review of various financial indicators.

The budgetary performance are constantly reviewed and through a sophisticated monthly

performance report which is a computer based program, the division provides feed back

to the senior on strategic issue like reasons for budgetary variance and methods to arrest

negative performance factors. Preparing the bank's annual accounts and coordinating

external audit is also a direct function of the finance division.

Audit Division

The audit division reports directly to the board through the executive

committee, which is also the audit committee. The audit division is completely

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independent of the management and is responsible for checking and reporting on the

management compliance with the boards policies and directives, as also the prudential

regulations and other directives of the SBP. The division is responsible for eV bank's

operations with the goal of improving the effectiveness of risk management and internal

control.

1.10 Corporate Information

Chairman

Lt. Gen. Imtiaz Hussain

Chairman Executive Committee

Lt. Gen. (R) Zarrar Azim

President & Chief Executive

Mr. Shaharyar Ahmad

Directors

Brig (R) Muhammad Shiraz Baig

Brig (R) Asmat Ullah Khan Niazi

Brig (R) Muhammad Bashir Baz

Brig (R) Shaukat Mahmood Chaudhari

Mr. Zafar Alam Khan Sumbal

Mr. Kashif Mateen Ansari

Mr. Muhammad Najam Ali

Mr. Muhammad Afzal Munif

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Company Secretary

Mr. A. J. Mubbashar

Audit Committee

Chairman

Brig (R) Asmat Ullah Khan Niazi

Members

Brig (R) Muhammad Shiraz Baig

Mr. Kashif Mateen Ansari

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Chapter 02

Departments

Banking procedures are divided between various departments. Different

departments do their jobs in occurrence with the bank policies. In UBLbank Limited each

branch is divided into various departments. Head of department manages each

department & officials of the branch follow procedures.

The departments working within a branch are as:

General Banking

Account opening department

Remittances department

Cash department

Clearing department

Privilege Banking Department

Online banking

Lockers

Credit Department

Forex Department

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Import department

Export department

Foreign currency department

Accounts Department

IT- Department

2.1 General Banking Department

1-Account Opening Department

Functions of Account Opening Department

Providing account opening form according to the customer's requirements

Guide the customer about the requirements of the account opening and form

filling

Check the forms whether they are correctly completed or not

Preparing checklist

Stamping on the form

Maintaining account opening register

Pasting of forms in register after release from general banking in charge

Issuance of cheque books

Issuance of accounts maintenance certificate

Closure of account

Verification of signature in case of cheque presented before releasing of account

opening from SS card is not yet scanned

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Importance of Introduction

For A\C Opening

Introductory references as soon as a person opens an account with the bank, the

banker customer relationship is established. In such situation this is advisable the banker

should not open new accounts of unknown persons unless references regarding the

integrity and responsibility of the purposed persons are obtained from respectable parties.

Failure to exercise this care may result in serious consequences not only for the banker

concerned but also for the other bankers and general public. It is not sufficient to obtain

the reference but its genuineness must also be verified. Omission of this may have serious

consequences.

Precautions to Avoid Fraud

If preliminary necessary inquiries mentioned above are not made and account

is opened, it is possible that an undesirable person is provided with a chequebook to

defraud innocent people or the person being an undercharged bankrupt may put the

banker in difficult situation.

Safeguard against Unintentional Overdraft

Sometimes due to misreading of the balance an account may be inadvertently

overdrawn or the credit entry of customer is placed into the account of another person by

mistake who happens to have withdrawn that amount. In all such cases the amount can

only be realized if the person is man of integrity.

Inquiries about Customers

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Private Service, business are not acceptable, rather specify what type of

company/business the customer is associated with for example Manager Philips Electrical

Company.

Address

Enter the complete business/residential address. With in the brackets you may also

provide prominent address identification marks for ease of physically locating the

address.

Contact Numbers

Enter home, official, mobile, fax number and e-mail address (if available). Banker can

verify the number by giving the customer a courtesy call or by sending him an e-mail.

Other/ Secondary/ Mailing Address

Some customer may volunteer their parents or siblings addressor second home address

or a mailing address other than a permanent address.

Special Instructions

Clear-cut special instructions must be obtained from customers. If the customer has not

given any special instruction specified column must be cancelled by drawing a line, as

this column must not be left blank in any circumstance.

Existing/Other Bankers

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ith and without negligence. Almost most all the bankers usually have a banking

relationship with another bank. In case of customer who does not have an existing

banking relationship, or does not want to disclose the existing relationship, then it is

strongly recommended that at least for some time this particular account must be kept

under observation.

Types of Accounts

Accounts of General Customers

Minor Account

Illiterate Person Account

Joint Account

Account of Special Persons

Proprietorship Account

Partnership Account

Limited Companys Account

Accounts of Club Societies and Associations

Agents Account

Trust Account

Liquidators Account Executers and Administrators Account

2-Remittance Department

Functions of Remittances Department

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All pay order shall be crossed" payees account only"

Charges on issue of Pay Order

Amount (Rs) Charges (Rs)

Less then 100,000 50

Above 100,000 Nil

Duplicate Pay Order:

Check the record to insure that payment has not been effected

Get application for issuing of duplicate PO

Recover charges

Issue duplicate pay order

Demand Draft

It is an instrument on demand for which value has been received, issued by the

branch of the bank drawn i.e. payable at some other place (branch) of the same bank. In

case of agency arrangement- demand draft can also be issued by one branch of the bank

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payable to other branch of the other bank e.g. DD issued by UBLbank Limited payable

by MCB.

Charges on issue of Demand Draft

Amount (Rs) Charges (Rs)

1 - 10,000 25

10,000 100,000 50 or .1%

100,000 - 1000,000 200 or .07%

Over 1000,00 1000 or .05%

Pay Slip

The bank for settlement of it own payment issue pay slip.

No excise duty

No commission

3-Cash Department

All physical movement of cash in the bank is made through the cash department.

Normally cash department performs following functions.

Receipt

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Payments

Act according to any standing instructions

Transfer of funds from one account to another

Handling of ATM

Verification of signatures

Posting

Handling of prize bond

4-Clearing Department

Meaning of Clearing

The word clearing has been derived from the word Clear and is defined as a

system by which banks exchange cheques and other negotiable instruments drawn on

each other within a specific area and thereby secure payment for their clients through the

Clearing House at specified time in an efficient way.

Since clearing does not involve any cash etc. and the entire transaction take place

through book entries, the number of transaction can be unlimited.

No cash is needed as such the risk of robbery, embezzlements and pilferages are

totally eliminated.

As major payments are made through clearing, the banks came manage cash

payments at the counters with a minimum amount of cash in vaults.

A lot of time, cost and labor are saved.

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Since it provides an extra service to the customer of banks without any service

charges or costs, more and more people are inclined and attracted towards

banking.

Clearing House

It is a place where representatives of all banks sit together and interchange their

claims against each other with the help of controlling staff of State Bank of Pakistan and

where there is no branch of State Bank of Pakistan the designated branch of National

Bank of Pakistan act as controlling member instead of State Bank of Pakistan.

Membership Ceases

It ceases to be a scheduled Bank

It is not able to meet its liabilities

State Bank of Pakistan or Central Govt. prohibits it to receive fresh deposits

Rules and Regulations Have Clearing House

Timing:(Monday through Saturday)

i. 1st Clearing at 10:00 a.m.

ii. 2nd Clearing at 2.30 p.m.

Each bank will send competent representative to exchange the cheques.

Each bank is required to insure that all cheques and other negotiable instruments

are properly stamped and suitably discharged.

An objection memo must accompany each and every cheque when return unpaid

duly initialed.

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Each bank is required to maintain sufficient funds in the principal account with

SBP to meet the payment obligations.

The State Bank of Pakistan debit the account of each member of the

clearinghouse with the proportionate working expenses incurred on the operation

of clearing house. These expenses are very nominal.

Outward Clearing at the Branch

The following points are to be taken into consideration while an instrument is

accepted at the counter to be presented in outward clearing:

The name of the branch appears on its face where it is drawn.

It should be stale or post dated or without date.

Amount in words and figures does not differ.

Signature of the drawer appears on the face of the instrument.

Instrument is not mutilated.

There should be no material alteration, if so, it should be properly authenticated.

If order instrument suitably indorsed and the last endorsees account being

credited.

Endorsement is in accordance with the crossing if any.

The amount of the instrument is same as mentioned on the paying-in-slip and

counterfoil.

The title of the account on the paying-in-slip is that of payee or endorsee (with the

exception of bearer cheque).

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If an instrument is in order than our bank special crossing stamp is affixed across the

face of the instrument. Clearing stamp is affixed on the face of the instruments, paying-

in-slip and counterfoil (The stamp is affixed in such a manner that half appears on

counterfoil and paying-in-slip). The instrument is suitably discharged, where a bearer

cheque does not require any discharge and also an instrument in favor a bank not need be

discharged.

The instrument along with pay-in-slip is retained while the counterfoil is given to the

customer duly signed. Then the following steps are to be taken:

The particulars of the instrument and the pay-in-slip or credit voucher are entered

in the outward clearing register.

Serial no. is given to each voucher.

The register is balanced; the credit vouchers are balanced from the instruments

and are released to the respective departments against acknowledgement in the

register.

The instruments are arranged bank wise.

The schedules are prepared in triplicate, two copies which are attached with the

relevant instrument and the third is kept as office copy.

The house page is prepared from schedules in triplicate.

The schedules and house pages are signed by the house in charge with branch

stamp.

The grand total of the house page is taken and agreed with that of the outward

clearing register.

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The instrument along with duplicate schedule and house page are sent to the main

office.

However the amount is kept in float till final status of various instruments is known from

respective paying banks in second dealing.

The entry of the instrument returned unpaid is made in Cheques returned register. If the

instrument is not to be presented again in clearing then a covering memo is prepared. The

covering memo along with returned instrument and objection memo is sent to the

customer who sent the same to his account.

Inward Clearing of the Branch

The particulars of the instruments are compared with the list.

The instruments are detached and sort out department wise.

The entry is made in the inward clearing register (serial no. Instrument no.

Account no. is written).

The instruments are sent top the respective departments.

The instruments are scrutinized in each respect before honoring the same.

Outward Cheques Returned Unpaid

These are the cheque returned unpaid by us in inward clearing due to some

objections.

Inward Cheques Retained Unpaid

These are the cheques retained unpaid to us which were lodged by us in

Outward Clearing.

Return of Cheques after Clearing House

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Suppose all cheques received in the inward clearing are passed and later on it is

found that a cheque should have been returned, in such cases, contact the collecting

branch and request them not to make payment against the proceeds of the cheque which

was not returned unpaid by us in due time. The cheque with objection memo along with a

covering letter is sent to the collecting branch, making request to issue a payment order in

favor to balance the Cash-cum-day book we may debit suspense account sundry debtors

with the approval of the manager. When the payment order is received, it is lodged in

clearing and suspense account, sundry debtors is adjusted accordingly.

Special Clearing

In addition to the normal clearing function at Clearing house it is mutually

agreed to hold an extra clearing at the clearing house on the particular day and time

which is known as special clearing it is arranged due to the rush of work arising out of

say, more holidays declared by the Central Govt. at a time, but normally special clearing

is held on last working day of our half yearly and yearly closing i.e. 30th June and 31st

Dec. every year.

2.2 Privilege Banking Department

1-Online Banking

Online banking means that the customer of UBL Bank Limited can deposit /

withdraw funds in / from other branches of UBL Bank Limited. UBL Bank provides

online facility to all its branches.

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Online Charges

Amount of Deposits Charges ( Rs)25,000 or below 50

25,000 - 200,000 100

200,001 - 500,000 250

500,001 - 2000,000 500

Above 2000,000 750

2-Lockers

UBL Bank offers facility of lockers to its customers.

There are three sizes of lockers available:

Charges

Size of lockers Rent of locker (Rs) p.a.

Large 2500

Medium 1500Small 1000

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2.3 Credit Department

Although the study of money is important for the understanding of the way in

which our economic system operates, we must recall this point that most exchange

transactions in this system are carried on today without the use of actual money, i.e.

Those are carried on by means of credit and credit instruments rather than money. While

money still forms the basis of credit and deferred payments, it is necessary to examine the

nature of credit operations, and the instruments and institutions trough, which these

operations are carried on, in considerable detail.

The Nature of Credit

On the surface, credit operation appears to be of many kinds, but they all have

a fundamental similarity. In credit transactions, one party to the transaction, the creditor,

turns over to the debtor a certain amount of money, commodities or services at the

present time and relies on the debtor to repay an equivalent amount, usually the money in

the future plus interest at some future time.

The Basis of Credit

There has been much discussion, concerning the essential basis of credit or

borrowing operation. Some writers on the subject have stoutly insisted that confidence is

the basis of all grants of credit that if one did not have confidence that the borrower

would repay a loan one would never thinks of making the loan, save on grounds of

friendship of philanthropy.

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Others have held property, rather than confidence is the basis of all genuine credit

transactions. Some insist that character is the essential factor, while still other writers

have indulged in a propensity of alliteration by sating that the bases of credit are

character, capital and capacity, or the man and the means, or reliability and resources.

Types of Credit

The verities of credit may be classified in numerous ways- according to the

status of debtor, according to the status of the creditor, according to the time for which

the credit is granted, and so on; but the most fruitful classification usually indicates the

use to which the credit is put.

Public and Private Credit

In the first place, a distinction is usually made between public and private

credit. Public credit comprises the promises to pay off governm goods in the present in

return for promises to pay in future; and private credit refers to the promises to pay all

non-government debtors. Among the sub-classes of private credit, the most significant

are band credit, commercial credit and consumption credit.

Band Credit

In Comprehends all kinds of promises to pay off banking institutions,

including demand deposits, time deposits, notes, bankers, acceptances, cash, letters of

credit, debentures, and bonded obligations. Frequently, the term bank credit is restricted

in use to refer only to the demand deposit liabilities of the commercial banks, and one

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must constantly be on guard to recognize the employment of the term in this restricted

sense.

As a sub-class of bank credit, central bank credit is of outstanding importance in modern

monetary system it includes the central bank's circulating notes and its deposit liabilities,

the better consisting chiefly of the reserve balances of the commercial banks.

Investment Credit

The credit structure, business if found upon examination to consist very

largely of two forms of credit. Investment credit is extended through loans, the proceeds

of which are put into the fixed assets of a business enterprise. If the owners of business

cannot themselves furnish all of the capital necessary for investments in land, buildings

and equipment. Obviously what they need is loans of capital running over a considerable

period of years.

Commercial Credit

In addition to seeking credit in long term investment in fixed assets, most

business periodically ask for credit in the form of short term loans. Commercial credit is

business supplier for current business operations, such as manufacturing and marketing of

goods. It often take more business capital than business can themselves supply to pay for

raw materials, to make the outlays for wages and to carry inventories of finished goods

until they can be converted into cash. To help finance such operations short-term loans

usually running from thirty days to six months are negotiated. Commercial loans like

investment loan must ultimately be paid out of accumulated earnings of a business. But if

the business earnings are of immediate future, such loans can be safely made and

promptly paid. Commercial loans are base done quick assets, such as raw material and

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Requirement of Funds Transfer

For transfer of fund in foreign currency, a person must have his account in

foreign exchange in the bank.

Requirement of account opening is $500 or any other currency equivalent to $500.

Types of currency Interest p.a.

Dollar .25%

Pound sterling 2%

Euro 1%

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Chapter 03

SWOT Analysis

An analysis indicating towards the organizations strengths, weaknesses,

opportunities and threat is termed as Swot Analysis. Such an analysis is very important

for the management in retaining the strength, overcoming the weaknesses, capitalizing

over the emerging market opportunities, and carving ways to successfully tackle with the

threats and ultimately converting them in the strengths for the organization.

During six weeks of my stay at UBL Bank Limited, Chaklala Scheme 3

Rawalpindi, I have come across the following Swot Analysis of the

bank.

3.1 Strengths

Automatic Operations

The operations performed by the bank are highly automated that result in

assurance for the customers that their transactions are completed reliably, efficiently and

securely.

Full Day Banking

One can avail the benefit of the services provided at the bank till 5:00 P.m.

which is highly useful for those customers who find it difficult to leave their officers in

the morning.

ATM Network

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The bank has the largest ATM network across the country. The customers of

UBL Bank withdraw access their funds any time at all the ATM sites with ASKCASH

Logo.

Customized Solutions

The management of the bank believes in customer focused banking rather than

the product oriented banking. The products and services designed by the bank are

specifically tailored to the individual needs of its customers.

Customer Oriented Banking

The priority banking centres of the bank offer an unmatched where the customer

receives highly privileged services in a highly elegant environment. It gives the chance of

experiencing new standards in banking. Designed specially for those who appreciate only

the finest things in life, Priority Banking offers the very highest levels of personalized

banking to match customers unique status.

Electronic Banking

The revolution in the banking in the form of electronic banking operations

have opened avenues of excellent, efficient and quick services saving the time and

costs of the customers and fortunately UBL Bank Limited is among those few

banks who are already reaping the benefits of electronic transactions. Electronic

Funds Transfer

UBL Bank Limited management is quite prepared to adopt the latest advancements in

technology resulting in revolution in the banking operations such as check clearing

process, computer based teller equipment, automatic teller machines, and electronic funds

transfers among the others.

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Phone Banking

Phone banking service is very attractive for those classes of customers who

dont have time to personally come to the bank i.e. banking on the phone line thus saving

the precious time of the customers.

Ethical Concerns and Public Image

The organizations showing concern for the people, ethics, and environment

enjoy good public reputation and are able to reap the benefits in the long run. UBL Bank

Limited management is quite sensitive to this issue.

3.2 Weaknesses

In my opinions these are the points that might be detrimental to the efficiency

and profitability of the bank.

Manual Book-Keeping

Although the bank has computerized accounting system but, still the bankers use

to make their entries in the accounting register.

Low Job Satisfaction

Understanding and the effective management of the human resources is the

most difficult challenge faced not only by the bank but by all the organizations. Even

though the people have been sacrificed in the new organizational developments, it is

becoming clear that the true lasting competitive advantage comes through human

resources and how they are managed. UBL Bank Limited seems to not focusing on this

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highly critical issue as the job satisfaction level of the employees working at UBL Bank

was quite low.

Lack of Specialization

This famous and useful concept given by Adam Smith in 1776 seems to be

missing in the bank. The employees are constantly rotated from one job to another job of

totally different characteristic in the view of giving them the know-how of the working in

all the departments.

Centralization

There is a high degree of centralization in the bank. Almost all the decision-

making is in the hands of the upper management. But centralization is effective up to a

certain level otherwise it becomes inefficient and at times costly too. I personally

observed that delay occurred in the operations of the employees only due to the fact that

they had not got any instructions from the head office.

Lack of Training Facilities

Presently there is no specific training program arranged for the new recruiters.

They have to learn based on their observations and also their mistakes. It takes a bit time

for the fresh one to learn the banking the result is huge amount of blunders, mistakes etc.

resulting in monetary and non-monetary losses for the bank. There is pressure not only on

the new learner but also on the person placed upon with this responsibility.

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3.3 Opportunities

The bank is facing the following threats and opportunities currently.

These are positive external environmental factors effecting the organization.

It deals in bulk business

A large amount of foreign investment is attracted

Strong potential for growth

Steady increase in Customer Deposits

Overseas Operations

Branches In Remote Areas

Islamic Banking

Sharp increase in imports and exports

3.4 Threats

High Charges

The schedules of charges indicate that the fees charged by the bank on the

various services it provides are extremely high. It may result in decrease in the number of

its existing customers. Further more, this could be very alarming situation for the bank in

case some of the competitors grasped the opportunity and lowered its rates. The result

would be either the lost of market share or decrease in the charges resulting in lowering

the banks income.

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Less Attractive Rate of Return

Commercial banks face considerable competition in attracting deposits from

individuals or small investors. In contrast, the Govt. of Pakistan national saving scheme

offers attractive rates of return (approx. 16 to 18 percent annually) on 10-15 year fixed

accounts, which banks find difficult to match.

Less Experienced Staff

Owing to huge turnover of the employees, the no. of experienced and well

trained staff is very low. Majority of the staff working in the bank branches is quite

young and inexperienced. If the bank failed to bring down its high employees turnover,

then it would be lacking the most important resources of any organization i.e. the

experienced staff.

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Chapter 04

Internship Experience

One of the most important aims of the student life is to express herself correctly

and adequately. This was the believe in my mind when I first decided to go to UBL Bank

to complete my internship program. Determined, Confident and Persistent in the pursuit

of knowledge and learning, I was on my way to UBL BankLimited, Chaklala Scheme 3Market Branch Rawalpindi in the early morning of July 9, 2007.

4.1 What I Learned

First Week

I started my internship from "General Banking" in the first week. The General

banking is basically divided into the following sub departments, which are as follows:

Account Opening

Bills and Remittances

Clearing

Term Deposit

Cash Department

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The first day of exposure to the practical field was at the (sub department) Account

opening.

The relationship of customer starts with this department. Every one is not allowed to

come and open an account in the bank, for this purpose there should be an introducer who

himself is the account holder in the same branch. He has to introduce the new client by

signing the opening account form and then his signature is verified.

Applicant's fills the account opening form and provides it to the bank with photocopy of

I.D. card and signatures card.

Then the banker inquiries the about the option of opening a joint account or individual. If

the customer wants to open joint account then either it is "either or survivor" (i.e. only

one persons signature is sufficient) or jointly (i.e. both should sign the cheque).

Account Opening

Although the procedure of opening an account in a bank is a quite complicated

job but I am going to tell you only the basic necessities for opening the account, which

are as follows:

Introduction

National I.D. card

Personal data

Details of dealing with other banks.

These are some of the basic requirements for opening the account.

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Second Week

In the second week I was shifted to the TDR (Term Depots Receipts)

department. It was again a good experience to work with the officer here. First of all he

told me about the basics of the TDR.

The main function of bank is to channelize the saving from the savers to the ultimate

users of the funds. This process of collecting saving is called "deposit mobilization".

Deposits are of two types one is the demand deposit and the other one is time deposit. As

the name signifies the demand deposit is payable on demand so no interest or benefit is

given on such deposits but the time deposit is a kind of deposit, which gives you a benefit

in terms of cash. Most of the people who have surplus money with them especially the

landlords deposit their money in such accounts.

Term deposits are payable on demand with certain maturity. Different percentages of

profit are given in the time deposit .These are called fixed deposit because they are fixed

and no transaction is allowed till maturity. In fix deposit you can open an A/c of the same

title only than A/c number will be changed. While in other accounts the A/c can't be

opened under the same title even in other branch of the same Bank.

Profit Calculation

The Head office determines the provisional rates of the Profit. Every bank has

its own interest rate; usually established banks have low interest rates then the non-

established banks as the have to attract the customers.

There are different types of accounts, which are shown in provisional rates of profit on

PLS deposit and rate of return minimum balance, and maturity is also shown in it.

After every six months the rates are revised on PLS deposit.

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On fixed deposit the interest is given on the Principle amount only while on other profit

and loss deposits the interest is given on profit an principle amount (provided that the

interest has not been received in the given time). On fixed deposits the month is started

from the day from which you deposit the amount.

Zakat is deducted on the first of Ramdan. However, the Bank can't deduct the Zakat if

you have given Affidavit (declaration regarding not to deduct Zakat on Stamp paper).

Record Keeping

The record of the TDR is although feed in the computer but there is also a hard

copy of the record. The verified TDR forms are pasted with serial number of receipt

given to the customer (the receipt of the form regarding the deposit of the amount).

UBL Bachat Certificates are attached or pasted in the file according to the date. The date

may be of any month and any year i.e if there is a card of the 8th then on this card you

will find the only 8th date of any month and any year in which the card was issued.

Third Week

In the third week of my internship I was shifted to the Clearing section and Bills

for collection section as well. Three days I worked with the "Clearing" and then with the

"Bills for collection" section.

Clearing

This is an "Inter-city clearing" i.e the cheques of Rawalpindi city from different

banks like National Bank of Pakistan, Standard Chartered Bank, Muslim Commercial

Bank are deposited here. The deposited cheque is received carefully by checking the title

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of cheque, date, amount, and signature on the cheque. All the cheques go to the State

Bank of Pakistan. Everyday NIFT receives all cheques and arranges them. By

establishment of NIFT a lot of time, cost and labor is saved. The cheques are stamped

carefully.

Two stamps are required on the cheques are:

Clearing stamp

Payee's account will be credited

If any stamp is missed or unclear, SBP returned one the cheque with reason. When the

cheques are deposited they enter all the cheques on the computer with account number

and these figures go to SBP.

There are four types of Balances in the computer

Available Balance

Float Amount

Block Amount

Ledger Balance

NIFT collects all the cheques at 2:00 pm. After that the computer department gives

clearing sheet that is checked in clearing.

Same Day Clearing

All the cheques are cleared in coming day. But same day cheques are cleared other

same day when it is deposited. The same day cheque amount is 50,000 below this amount

the cheque, can't be cleared in the same day.

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Clearing House

It is a place where representatives of all scheduled banks sit together and

interchange their claim against cash other with the help of controlling staff of "State Bank

of Pakistan" where there is no branch of State Bank of Pakistan, the designated branch of

State of Pakistan.

So, system by which banks exchange cheques and other negotiable instruments drawn on

each other within specific area and there by secure payment for their clients through the

clearing house at specific time in an efficient way.

Bills for Collection

Two types of cheques are deposited here

Outstation Cheques

UBL Other Branch Cheques (Local)

Outstation cheques mean different cities cheques are deposited and local means Askari's

other Branches like Saddar, hyderroad, etc. are deposited. All cheques account numbers

on the computer and these figures go to SBP.

The cheques are cleared in 5-6 days. Because "NIFT" receives and delivered to SBP

where these cheques are cleared in 3 days and deliver to the banks, which mention on the

cheques.

The cheques require three stamps

UBL Crossing Stamp

OBC Number

Payee's Account Will Be Credited.

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If the cheques are returned due to some reasons, a returned memorandum is filled and

entries are recorded on the register.

Fourth Week

In the fourth week of internship I was transferred to the "Remittances department".

I met there with a quite sophisticated personality, she tells me about the issuance,

procedure and the entries of the demand drafts and pay orders.

Demand Draft

It is an instrument payable on demand for which value has been received, issued by

the branch of the bank drawn. Demand draft is payable at some other branches of the

same bank. But UBL Bank contract with MCB so UBL Bank Limited demand draft is

payable at MCB also. Demand draft is very useful because there is no chance of fraud.

The person deposit cash and get demand draft. It is used for outstation payment.

Issuance of Demand Draft

On the application form following particulars are given:

Name of Beneficiary

Amount

Mode of Payment

The Place Where DD Is Drawn

Signature

Name And Address of the Beneficiary

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Request shall be made on standard application form. The customer writes his name,

address, I.D number, and phone number on the backside of the application form.

Commission is charged as per schedule of charges. The issuance of DD is computerized

and the amount is automatically protecting graphed drawing printing for the avoidance of

forgery.

The withholding tax and excise duty is deducted as per schedule. When the customer

depots cash in the cash department, he got voucher from the cash department and gave it

to the person who makes the DD.

Payment of DD

When a person brings DD (which have been drawn on you), you will check it from

your DD payable record and ask the customer to sign twice at the back of the DD so that

it could be confirmed that he is the eligible person for receiving the benefit, along with

this you obtain the ID of that person verify it and then make the payment. After making

the payment entry is made in the register that this DD has been paid.

DD Payable Register

Every day you receive an IBCA from different banks and it contains a list of DD,

which have been drawn on you. Banker records it in DD payable register. These DD are

those, which other branches have drawn on your bank.

Cancellation of DD

Following procedure is followed for the cancellation of the DD.

Obtain the application in writing for the cancellation of DD along with the

original DD.

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Verify the signature of the applicant, which should tally, with the signature on the

application form (for opening the DD).

Mark caution on DD issued register or on computerized entry.

Make the payment from suspense account.

Inform the Drawee bank regarding the cancellation and ask for IBCA. Inter

Branch Credit Advice is the advice regarding the payment (refund) of the amount

which Drawer bank have sent to them (which was deposited by the customer

against the demand draft).

When a demand draft is made, an IBCA is sent to the Drawee bank regarding the

payment.

Types of DD

DDs are of the following types:

Crossed DD: In the case of crossed DD the amount is deposited to the A/c of the

beneficiary.

Open DD: Incase of open DD the amount is handed over to the beneficiary at the

cash counter.

Telegraphic Transfer

The transfer of funds from one branch to another branch of the same bank is called

telegraphic transfer. The bank apply test on telegraphic transfer. The applicant receives

Commission and charges, if the Applicants account is in UBL Bank Limited, he pays no

charge above Rs. 100,000/-

If he has no account in the UBL Bank Limited then he has to pay charges according to

the amount e.g. for Rs. 100,000/- the charges are Rs. 250/-

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If the account of beneficiary is in another bank, his bank will present The TT to UBL

Bank Limited through for payment.

Pay Order

Pay order issued from one branch can only be payable from the same branch. Pay

order is used for same city payment. E.g. If UBL Bank Limited (Main Branch) issued pay

order it is only payable for Main Branch of UBL Bank Limited.

Procedure

Applicant fill the application

After paying charges he gets voucher and pay order is issued

All pay orders shall be crossed "payee's A/c only"

Cancellation

The applicant give application for cancellation

Charges are recovered from the applicant

Fifth Week

In the second last week of my internship I worked for two days in the "ATM

section" and then in the "Accounts section".

Account Section

I worked three days in accounts department but as it is a confidential department so

they did not give me enough in formation regarding their working. First day I sorted out

the cheques of UBL Bank Limited with the help of the serial number and the nature of

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the account and arrange them in sequence. After that I checked the activity which

contains the title of the cheque, amount, date etc. Accounts department maintains the

record of expenses of all the departments, it also maintain the record of all the employees

regarding their basic salary, increment, benefits etc.

On the next day I worked in the mail dispatch section, the person appointed here asked

me to arrange the letters and to write the mailing address on the envelopes and then to put

the letters into the envelops. It was an interesting job.

ATM Section

I worked two days in ATM department. The country wide network of automated

teller machine carrying the brand name "ASKCASH".

The branch network is corrected on-line real time and its customers have access to off-

sites as well as on-site ATMS all over Pakistan. Being a part of the first inter-bank ATM

switch in Pakistan with ABN AMRO and HABIB Bank, the customer now here has

access to about 90 ATMs through the country.

For ATM cards first the customer open account in the bank after that he/ she fills the

application form for the ATM. The Head office sends an ATM cards in a ATM

department but pin codes are sent in other department. So in this way the customer gets

his/ her ATM cards.

ATM means "24 hours services" the customers get money at any time at any place.

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Sixth Week

In the last week I was shifted to the "foreign exchange" department. For the first

three days I worked there but in the last three days I was shifted again to the account-

opening department due to the absence of one of the Account opening officer. Therefore I

was sent back to the account-opening department.

4.2 Critical Analysis

Positive Points

Opportunity to Learn

First of all the internship gave me an opportunity to get a first hand experience of

working with some organization i.e UBL Bank Limited. It was a golden opportunity to

learn about different new skills and organization environment.

Learning Extra Skills

Another point that I learned during my internship at UBL Bank Limited was that

employees should use the concept of job rotation in partial. Because it really adds to the

overall efficiency of the organization, this technique with all its positive point is being

highly practiced at UBL Bank Limited. If some employee gets absent or happens to face

any sort of emergency another employee is readily available to work at his/her place

briefly, employees and organization both get extra benefits from job rotation.

Caring For Employees

I learn that if the organization take care f its employees, the employees in turn, use

to feel more confident motivated and satisfied, as in the case of UBL Bank Limited.

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Professional Dress Coat

During my internship I have found that in the professional life of a person dress

coat really matters. It creates a long lasting impression in the minds of not only clients

but senior officers colleagues etc. UBL Bank Limited is pretty conscious about the

appearance of its employees. It created a sense of being well dressed and looking as a

smart young professional.

Coordinated Groups Are More Productive

Another positive thing I learnt was coordination. Coordination is an important and

appreciable aspect of working groups at UBL Bank Limited. People understand the

responsibilities of each other and have known how about the duty of other person. So,

there if anyone is not disturbed and overall efficiency remains consistent.

Punctuality and Regularity

One of the most important things that internship teaches an internee is punctuality

and regularity. Most of the students in their college lives not as much punctual and

regular though it is positive point as they are required to be in their professional career.

Respect Everyone

Giving respect to all other employees especially to senior is one of major ethical

principles at UBL Bank this principle is greatly followed. Junior employees respect their

senior colleagues and always struggle to fulfill their expectations.

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Learning Environment

UBL Bank Limited has a productive, healthy and learning environment which

enables me to learn lot of new skills like it gave me confidence and polished my

personality.

Ethical Training

Another thing which I have learnt that is ethics. Ethics are no doubt, an unavoidable

part of a professionals personality. Ethical training is a means of guiding the employees

of the bank that what ethical principles they are supposed to abide by, in their personal

and interpersonal lives because employees are the real asset of any organization and any

unethical action on heir behalf can defame the whole organization.

Behavior Training

The internship also tells how to behave in the office. If there is some behavioral

problem with the employee which affects his overall efficiency then the bank has a

treatment for him.i.e behavioral training e.g. at times the new employee fails to adapt to

new environment and exhibits improper working behavior like showing no interest in the

job etc. Such employees are also retained and kept through improving their behavioral

deficiencies at UBL Bank Limited. So, I also learned these things.

Team Emphasis

Team emphasis refers to the degree to which work activities are organized around

teams rather than individuals. So this is also the positive point that I learn that how to do

work in a group. UBL Bank puts great emphasis on team building because the banking

sector involves projects with large scope that ultimately calls the need for teambuilding.

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Negative Points

Lack of Motivation and Self Responsibility

Self motivation and self responsibility makes the employees to keep their

efficiency exceptional. Unfortunately at UBL Bank these two drivers are not found in the

way they should be.

Human Resource Division Related Security

Human resource division should be provided more security because extremely

confidential information is maintained there.

Inefficient online banking

The online banking is not of very high-quality. The payments and processing are

slow. They need to update their use of information technology as this is the cyber era. So

UBL Bank needs to focus its attention towards this problem which keeps it a step back

from other competing banks like Standard Chartered etc.

4.3 Things I wish had been know to me before starting my internship

There are many things that I wish I had known before joining UBL Bank for my

internship experience.

Banking field is now not just restricted to the give and take of money but it has expanded

its reach to foreign exchange and also due to the introduction of information technology

the bank structure has significantly changed.

Thus I wish I had known about

How to open a foreign account

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Some codes and symbols used in banks

The procedures and process of letter of credit and how different deals are made

How to persuade and deal with an angry client

Another very important thing I wished to know before was the nature of work

which I was supposed to perform as an internee.

Before my internship I had many doubts regarding the complexity of work

compared to my knowledge and especially because I have human resource

management as my majors subject.

The students of managerial sciences are not mentally prepared for non-managerial

tasks which they are required to perform as an internee. So I wish our university

had given a little briefing on these sides as most of the students were bank

internees.

4.4 Skills I Used and Newly Learnt Skills

Management skills

Communication skills

Technology skills

Coordination skills

Working skills

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Presently I am specializing in human resource management. My internship in this

department has enhanced my knowledge about different textual concepts of the

subject which is again a plus point, on my part, for my future career plan.

In todays selection procedure, interview is the most crucial stage. My internship

made me confident and enhances better communication skills. Now I have come

to know how to create first impression which is very important for taking up the

first step of my career plan.

During my internship, I came across some people who were successfully,

developing their career, I observed their qualities, abilities and planning would try

to follow them to buildup my own career.

RECOMENDATION

After spending six weeks at different departments of the bank, interacting with

the employees, getting their views, observing the organizational structure and design, I

havecome up with the following suggestions that in my view, will definitely improve afew weaknesses observed in the bank by me.

Flexible Policies

The bank should be adopting flexible policies, especially in the areas of the

recruitment, promotions, evaluation of the employees otherwise the high turnover

observed in the bank will continue to create problems for the bank now and in the future.

Job Security

The employees in the organization should be insured job security so that there is

no pressure on the employees while performing their tasks.

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Permanent Hiring

The fresh hiring should be made permanent so that they are secured of their future.

Further the allowances and perquisites attached with the permanent jobs will also

increase the motivation level of the employees.

Job Training Programs

The bank should place emphasis on the organization of effective training and

development programs for its new as well as existing employees so that these are

gradually updated regarding the recent developments in the field of banking.

Perquisites and Allowances

The number of allowances and perquisites for the employees should be increased to

ensure that they put their body and soul in the jobs assigned to them.

Adoption of Effective Technology

The current system used by the bank is very slow in processing so my view is that

the bank should try to adopt some other but more effective form of technology in order to

provide comfort to the customers as well as the staff.

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Conclusion

UBL is an effectively operating and profit making organization and carrying out

its activities under a specified system of procedure. The main regulatory body is state

bank of Pakistan, which provides policy guidelines and insures that the money market

operates on sound professional basis. While the head office specifies the whole procedure

of function and operation. The procedure has been modernized with the passage of time

with view to streamline the approach and underlying procedure for effective over hauling

of its own capabilities so as to bring them at par with international practice.

Cash is still most comfortable mode on transition, because of cultural dislike for

borrowing from the formal sector and easier access and also because of the presence high

denomination currency which could be carried easily. The fear of transaction information

being more to the authorities to the authorities giving rise to question on the income

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References

Chernow, R. (1990). The House of Morgan (4th ed.). New York: Atlantic Monthly

Press.

Emory, C.W. (1985). Business research methods (3rd ed.). Homewood, IL: Richard D.

Irwin.

Roger, L., David, D. (1993). Modern Money and Banking (3rd ed.). New York:

McGraw Hill.

Online references

www.google.com

www.historyworld.net

www.ubl.com.pk
http://www.google.com/http://www.historyworld.net/http://www.ubl.com.pk/http://www.google.com/http://www.historyworld.net/http://www.ubl.com.pk/

Documents

Ali Raza by Syed Zia