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[ I N T E R N S H I P ] page 8
PROJECT
[Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Typethe abstract of the document here. The abstract is typically a short summary of the contents of the document.]
Qurtuba Universityof Science & Information Technology
Dera Ismail Khan
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ASSIGNMENTON
INCENTIVE
Submitted to:SIR. GOHAR
SubmittedBy:
KASHIF RIAZROLL NO.3
BBA (4th semester)
Session: 2010
Subject: Human Resources Management
Qurtuba Universityof Science & Information Technology
era Ismail !han
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INTERNSHIP REPORT ON
UNITED BANK LIMITED OF PAKISTAN
External Examiner:
Sinat!re""""""""""""""""""""""
Dire#t$r:
PROF% &USAIR H A'AN
Sinat!re""""""""""""""""""""""
S!(er)i*$r:
MA+AM% AKHASHA IMRANI
De*inati$n Le#t!rer
Sinat!re""""""""""""""""""""""
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PREFACE
Banking is the backbone of the economy of any country. In akistan! banks are no" getting
the attention and support of the go#ernment! to nourish and initiate the de#elopmental
pro$ects in this %ountry. Banks ha#e also attained a high le#el of initiation! producti#ity! and
gro"th. ne such bank "ith ne" policies and strategies pushing forth to"ards progress is
Unite" #an$ %imite"! "hich has since its inception sho"n remarkable achie#ements and
disco#ered ne" a#enues of inno#ati#e banking.
During my t"o months Internship in 'B(! )ain Branch Bannu! I ac*uired first hand
information about %onsumer Banking of the bank.
+eport "riting is in fact a crucial e,ercises because the performance of a student is $udged
through this report. I ha#e tried my le#el best to co#er e#ery aspect of this speciali-ed
banking acti#ity! asses the "orking and performance of the %enter and for"ard solutions for
its further impro#ements.
number of persons ha#e offered their help and guidance in "riting this report. I e,press my
thanks to my super#isor )+./TB K01! and my manager )+. 23ID K01. I "ould
also like to thank to the other staff members of 'B(! especially )+. 01I/ '((0
K01 ! "ithout "hose support it "as impossible for me to do this tedious $ob.
RS' (E'(OO
##)IT *'O+S,
Roll +o-./0
Session 0112)31
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ACKNO'LEDGEMENT
In completion of this "ork I am thankful to lmighty ((0! as I firmly belie#e! "ithout
his gracious help4 this accomplishment "ould not ha#e been possible.
/irst and foremost! my deep appreciation! gratitude and indebtedness to my super#isor
)+./TB K01! (ecturer! Institute of )anagement Sciences! 'ni#ersity of Bannu! for
his continuous encouragement! moral support and generosity in sharing his time and
kno"ledge during my studies.
I "ish to e,press my sincere gratitude to personnel of 'B(! )ain Branch! Bannu! for their
help and guidance during my Internship.
Thanks to the constraints of academic protocols! that those "ho "ere and are al"ays first in
my mind are being mentioned last. They are my parents and my lo#ed ones. It is! I belie#e!
their sincere prayers! "hich "ere a constant source of strength and inspiration to me that
resulted in the completion of this "ork. I dedicate this "ork! blended in my boundless lo#e
and affection! to them.
RS' (E'(OO
##)IT *'O+S,
Roll +o-./0
Session 0112)31
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E,ECUTIVE SUMMAR-
1o" a day5s strong and efficient capital and financial institutions are the basic
re*uirements of each country. So no country can be considered strong "ithout ha#ing strong
enough capital and financial institutions and markets. ne of the components of these
financial institutions are the banks. 1o one can deny the role the banks are playing in the
economic de#elopment of a country.
In akistan5s banking sector! 'B( is one of the leading commercial banks. 3ery
reno"ned bankers such as I.I. %hundrigar and gah 0assan bidi established 'B( in 6787.
/rom the #ery beginning! 'B( "as sho"ing #ery good performance but in 679: after the
nationali-ation of commercial banks! the bank has recei#ed some #ery se#ere financial
shocks. The shocks recei#ed in 6778 "ere so se#ere that SB had to assume the control of the
bank in order to sa#e it from bankruptcy. But after taking o#er the management of the 'B(
by the ne" set;up under the leadership of
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TB(> / %1T>1TS
S-+o- To4ic Page +o-
reface I
ckno"ledgement ii
(ist of Tables #i
(ist of =raphs and %harts #ii
(ist of cronyms #iii
>,ecuti#e Summary i,
Cha4ter 5 3
6. I+TROUCTIO+
6.6 Background of the Study 3
6.? b$ecti#es of the Study 3
6.@ Scope of the Study 3
6.: Importance of the Study 3
6.8 (imitations of The +eport 0
Cha4ter 5 0
?. E6O%UTIO+ O7 #+!I+8
Introduction /
?.6 =ro"th and 0istory of 'B( /
?.? Subsidiaries 9
?.@ 2oint 3enture 9
?.: +ole of 'B( in 1A/ :
?.8 )ission Statement of 'B( :
?. b$ecti#es of 'B( :
Cha4ter 5 /
@. OR8+I;TIO+% STRUCTURE
@.6 'B( rgani-ational Structure ,change Department 3.
:.8 d#ance department 01Cha4ter 5 :
8. SER6ICES & PROUCT O7 U#%
8.6 =>1>+( D>SIT 0/
8.? %'++>1T D>SIT 0/
8.@ S3I1= D>SIT 09
8.: /IC>D D>SIT 0:
5.5 '1I;%S0 0:
5.6 'B( A((>T 3IS %+D 02
Cha4ter 5 2
. S>OT +%?SIS
.6 Strengths 0=
.? Aeaknesses 0=
.@ pportunities /1
.: Threats /1
Cha4ter 5 5S.
To increase industriali-ation in the country.
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To pro#ide financial help to the farmers.
To pro#ide employment opportunities.
To make people more of mind to ha#e sa#ing habits
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C'PTER /
OR8+I;TIO+%
STRUCTURE
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+=1I
rgani-ational structure of a firm pro#ides boundaries for authority of
persons and clarifies indi#idual responsibility and authority. It sho"s "ho is
responsible to "hom! and "ho has the authority to gi#e orders to someone. n
organi-ation ha#ing dual authority or #ague structure "ould not ha#e clear
direction and "ill face hurdles in getting its goals and ob$ecti#es. Therefore! it is
#ery important for any organi-ation to ha#e a "ell;established structure of
responsibility and authority. n organi-ation structure should be so designated
to clarify the en#ironment so that e#eryone kno"s his duty and "ho is
responsible for "hat. It results to remo#e obstacle to performance caused by
confusion and uncertainty of tasks and to furnish a decision making
communication net"ork reflecting and supporting enterprise ob$ecti#es.
3.1 %B! O")*+,*,O+*! S"%/%"0:
'B( also has a "ell defined formal organi-ational structure. 'B( is a
#ery #ast organi-ation. In the organi-ation set up of 'B(! the highest authority
rests "ith Board of Directors "hich consists of %hairman! Deputy %hairman!
resident & %> and the directors. In "hich four directors are from 'B(! one
from akistan Banking %ouncil! one from )inistry of /inance and one "ho is
also the secretary of the board. So the Board of Directors is an eight member
team! and is responsible for policy formulation and making important strategic
decisions.
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The authority! "hich is second highest! lies "ith e,ecuti#e committee. It
consists of se#en members! including the president and secretaries are in charge
of di#isions. The members are Senior >,ecuti#e 3ice resident HS>3 of 'B(.
There are t"enty di#isions! "hich ha#e their o"n Senior >,ecuti#e 3ice
resident HS>3T. >,ecuti#e 3ice resident H>3! or Senior 3ice resident
HS3! the
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S>3 to international di#isions manages the operations of foreign countries
branches. The rest of the di#isions "ork along their functional lines as sho"n in
the organi-ational chart.
t the 1ational le#el! 'B( has a net"ork of branches spread all o#er the
country and its field operations are one of the most e,tensi#e among the leading
banks in akistan. t pro#incial le#el the bank is managed by S>3! "ho is
assisted by =eneral )anager H)! "ho is >3 or S>3. The ) is
responsible for either a number of regional areas or in charge of #arious
pro#incial departments such as dministration! =eneral +eco#ery! (oans!
Inspection! etc. The comple,ity and e,tensi#eness of the operations in a gi#en
pro#ince determine the number of )s. )s are assisted by circles e,ecuti#es
"ho are of the rank of S>3 or 3.
The entire country is di#ided into %ircles "hich are further di#ided into ach -one is comprised
of a number of branches! "hich are managed by branch managers "ho are
mostly =rade I or =rade II officers. Some large si-ed branches are also
managed by 3s.
3.2 ,,S,O+ O %B!4S O,/0
Basically there are t"o types of offices in 'B(
6. 0ead ffice
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?. +egional 0ead *uarters
3- 'ea" Office
0ead office of 'B( is in Karachi. It e,ercises o#erall control o#er
the bank. The head office H0M has #arious functions.
It formulates polices and ensures its implementation.
To super#ise and control the operations of the regional offices.
To formulate policies and ensure its implementation by the field offices.
To dealNliaison "ith foreign donors like IB+D HAorld Bank! sian
De#elopment Bank! Islamic De#elopment Bank! K/A H=erman Bank!
/) 1etherlands etc.
To deal "ith )inistry of /inance.
To super#ise +0Ms.
To sanction loan applications recei#ed from the branches.
To deal "ith ministry of finance.
0- Regional 'ea" Quarters
There are >le#en +egional ffices of 'B( "hich fully cooperate
"ith the 0ead ffice. 'B( +egional ffices performance "ith reference
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to sanctions! disbursement! reco#eries! and deposit mobili-ation is of #ital
importance to the bank operations. The functions are as follo"sO
To implement the policies formulated by the 0ead ffice.
To e,tend the credit facilities by keeping in #ie" all the prescribed
conditions.
To reco#erNcollect the e,isting long;term credits e,tended by the bank as
per schedule.
To assist customers in the process of de#elopment by ad#ancing loans for
#iable financial pro$ects.
ll the 6J8 'B( branches are the representati#es of the bank. These
branches pro#ide commercial as "ell as non;commercial banking facilities.
3arious structures in#ol#ed in the organi-ation of 'B( are gi#en belo".
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/-/ Organiational 'ierarchy Chart
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#oar" of irectors
EDecutive Committee
Presi"entCEO
SE6P
E6P
S6P
6P
6P
Office 8ra"e 3
+on Clerical Staff Clerical Staff Officer 8ra"e III Officer 8ra"eII
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.%/ Orani0ati$nal Hierar#12 C1art $3 #$n*!mer *e#t$r
in UBL
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#oar" of irectors
EDecutive Committee
Presi"entCEO
8rou4 EDecutive
8lobal Sales 'ea"
'ea" Secure" 7inancing
+ational Sales (anager
Senior Sales (anager
Regional Sales (anager
+on)Clerical Staff Processors Relationshi4
officers
Relationshi4
(anager
Head Un-secured
Financing
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/-: %ocation ma4
AIT0 an integrated net"ork of o#er 6JJJ branches in akistan as "ell as #erseas!
'B( gi#es you direct access to a comprehensi#e range of better banking facilities to help you
monitor your business locally as "ell as internationally.
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""".ubl.com.pk
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C'PTER 9
EPRT(E+TTIO+
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EPRT(E+TTIO+
'B( like other commercial banks established #arious departments for the
performance of #arious functions. Some of the departments of 'B( are /oreign
>,change department! d#ance Department! ccounts Department! Deposit
Department and +emittance department etc.
1o" "e "ill highlight the #arious function performed by the different
departments in the 'B(.
9-3- CCOU+TS EPRT(E+TA
The ccounts department of 'B( mainly deals in the accounts of
customer maintained at the bank. The accounting book maintained for these
ser#ices is kno"n as cashbook. The summary book and ledger are maintained
through computer.
The cashbook is used for balancing the cash recei#ed and cash paid at the
end of the day.
!in"s of ccountsA
i- %urrent ccount
ii- Sa#ing ccount
iii- /i,ed ccount
i- Current ccountA
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There is no restriction on the deposit and "ithdra"als of money in this account..
ii- Saving ccountA
In akistan sa#ing deposit account can be opened "ith a #ery small
amount of money! and the depositor is issued a che*ue book for "ithdra"als.
+eturn is paid at a fle,ible rate. %alculated on by yearly basis. 0o"e#er!
"ithdra"als of limited accounts are generally allo"ed only one or t"ice a "eek.
The consumers ha#e to gi#e a notice of about t"o "eeks before the "ithdra"als
of large amountF the minimum amount of money re*uired for opening the
sa#ing ccount is +s. 8JJN; "hile to remain the Nc is running position the
account holder has to maintain a balance of +s. 6JJN; for the "ithdra"als are
concerned there is no restriction but the bank discourages #ery regular
"ithdra"als of small amounts.
iii- 7iDe" ccountA
EThe deposits that can be "ithdra"n after a specified period of time are
referred to as fi,ed or term deposits.F The account holder keeps a specified
amount of money for a definite period of time. The amount deposited is not
"ithdra"al by che*ues. nd after the maturity of the pre#iously agreed rate of
return.
single indi#idual! partners and companies! too can maintain such
accounts as "ell. The period of "hich these deposits are held by the bank
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ordinarily #aries from three months to J months "ith the agreement made
bet"een the customer and the banker.
iii- #usiness #an$ ccount-*## C,A
This is the special type of ccount HNc offered by 'B(. This type of
Nc is opened for the students and salary holders. In this Nc there are some
facilities offered for the Nc holder such asPP..
I. 1o restriction of minimum balance.
II. T) facility.
III. 1o restriction on dra"ing.
I3. Transfer facility.
3. +ecei#ing from others Banks "ith minimum commission.
3I. +ecei#ing of salary from others Banks before 6 stof the month.
9-0 RE(ITT+CES EPRT(E+TA
This department is concerned "ith the transfer of money from one place
to another. In this! #arious modes of transferring money are a#ailable "hich are
discussed belo".
- (ail Transfer *(T,A
In this the money is transfer from one place to another by mail. If the
person is account holder of the bank! then the banker debit his account "ith the
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amount of money he "ants to transfer. The concerned bank officer "ill prepare
the necessary #ouchers to make the mail transfer complete. It contains on4
6 ebit 6oucherADebiting the account holder for the amount to be sent
plus the commission and postage charged.
? Cre"it 6oucherAcredit the dra"er branch
@ (ail Transfer RegisterAThe remittance is entered in the mail transfer
issue register.
But if the person is not an account holder in the initiating branch! then he
has first to deposit the stated money "ith the same bank and then the abo#e
process starts.
#- Telegra4hic Transfer *TT,A
eople "ho "ant to transfer money *uickly and "ithout delay use this
type of transferring money. This type of transfer is also #ery simple. The person
"ho "ants to transfer money fills the TT application form. The applicant asked
to deposit money to be remitted plus the amount of commission and telegraph
charges. fter the amount is deposited "ith cashier! the officer in charge
remittances "ill prepare the TT message. The TT message also carried a test
number "hich is a sum of #alues deri#ed from number items like date! amount!
and the dra"er branch consecuti#e number etc. then this telegram is sent to the
bank "here the money is to be transferred. fter recei#ing the telegram the
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dra"er bank makes payment after the test number is correctly decoded
according to the procedure prescribed.
C- eman" raft *,
In this "ay the person "ho "ants to remit money goes to the bank and
fills the application form by filling the name of the dra"er branch! amount and
the payee5s name. The amount to be remitted is deposited "ith the cashier along
"ith the commission on DD and the in charge of remittances department "ill
prepare the instrument. It is signed by t"o officers of the branch and is then
handed o#er to the applicant. The amount can be recei#ed by presenting DD to
the dra"er branch personally or through a bank.
. Uni remote *O+ %I+E TR+S7ER,-
It is the most faster transfer of money from one bank to another "ith in the
country.
Thorough on line facility you can transfer the amount from one city to
another city in no time "ithout commission Hif you are account holder of the
Bank.
In this method the transferor Nc are Debited by the Bank and the
transferee Nc are %redited Hto "hom the amount is transferred by his Bank
"here he has Nc.
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The amount is transferred in no time. nline transfer bring great re#aluation in
the business "orld and make business more secure and fast.
The trader transfer money to the seller through bank! and the seller sent
goods to the buyer as soon as possible! and thus buyer sa#e his tra#eling charges
! as "ell as he also not close his business of the buying of goods for the
business.
9-/ EPOSIT EPRT(E+TA
ne of the important functions of the bank is to recei#e
surplus money from the indi#iduals! firms and institutions etc. It can be said
about the deposit that it is the lifeblood of any bank. bank cab not runs its
business "ithout the deposits.
The bank usually recei#es deposits in the follo"ing type of accounts! "hich are
as under.
3, %urrent ccount
0, Sa#ing Deposit ccount
/, /i,ed Deposit or Time Deposit
9, %all Deposit
QThe classification of deposit chiefly on the basis of time and the purpose
for "hich the account is opened "ith the bank.
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1o" "e "ill study the #arious types of deposits in detailO
3- Current ccountA
This type of deposit is "ithdra"al by crepes "hene#er the customer
dra"s crepes on this account. s such deposit is also termed demand deposit.
In akistan! bonds do not allo"ed any interest on such deposit. nd the bond
treat these deposit as current liabilities. The banker also re*uires the customer
to maintain a minimum amount of balance. If the customer fails to do so! then
bank makes deduction from such accountsNdeposits under the heading on
incidental chargers.
E'ntil a fe" decades bank! the proportion of current deposits in relation
to fi,ed deposits "as #ery small. In recent years! ho"e#er! the position has
changed remarkablyF.
0- Savings e4osit ccountA
In akistan a sa#ing deposit Nc can open "ith a #ery small amount of
money and the depositor is issued a che*ue book for "ithdra"als. +eturn is paid
at a fle,ible rate calculated on si, months basis. 0o"e#er! "ithdra"als of
limited amount are generally allo"ed only t"ice a "eek. The customer has to
gi#e a notice of about t"o "eeks before the "ithdra"als of large amounts.
Such account may be maintain and run by an indi#idual! partners and
companies as "ell. The most important character of this type of deposit is
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issued "ith a che*ue book for "ithdra"als. The account holder is returned "ith
profit rate! calculated on si, months basis.
/- 7iDe" or term e4ositA
It is payable to the customer after the e,piry of a certain duration. The
duration of fi,ed deposit are #arious from three months to si,ty months. The
bankers offer different rate of return on the fi,ed deposits depending upon the
duration of the deposit. The amount deposited in fi,ed account is not
"ithdra"n able. The amount is recei#ed back after the e,piry of fi,ed period.
ne of the most important aspects of term deposit for the banks is that the
money of this deposit can be in#ested in #arious "hat the bank consider
profitable.
This type of deposit is also kno"n as single transaction account. It is
because the account holder cannot operate upon the account like other deposit
accounts. The banker usually gi#es a receipt of the fi,ed deposit mentioning the
amount of money and date of maturity of the deposit. 1o pay in slip book!
passbook or che*ue book is issued to the customer.
9-9 7OREI8+ EFC'8E EPRT(E+TA
In today5s "orld no one country can keep itself self;sufficient in e#ery
area of life. So they ha#e to trade "ith other countries for the things! "hich she
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does not ha#e. But such Business re*uired a medium of >,change! "hich is
acceptable to the countries concerned. So they usually do business through the
medium of stable currencies of the "orld.
/or such International Business transaction the bank utili-e the ser#ice of
its /oreign >,change Department. The department plays #ery crucial and
important role in international trade. The ser#ice! "hich /oreign >,change
Department of the banks offers! is the parallel banking "ith general banking and
additional function of import and >,port Business controlled by State Bank of
akistan. The rules and regulations are framed by the SB.
In 'B( its foreign e,change department as per SB regulations carries
out the international banking. The SB e,ercises full control o#er the /oreign
>,change Business. 1o transaction is considered effecti#e "ithout permission
from the SB under /oreign >,change control ct 67:9. /oreign >,change
regulations are issued though the >,change control Department of the SB.
ny transaction in the international Banking shall be carried out at rates
determined by the SB. /or this purpose the SB fi, the rate of 'S dollar "ith
other currencies. /oreign >,change rate committee in Karachi 0ead ffice
does this by the formula appro#ed by SB and as published daily. It also makes
sure the rates appro#ed are con#eyed to the braches on the same day.
/oreign >,change Department pro#ides the follo"ing ser#ices to the
customer.
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/oreign >,change %urrency ccounts
/oreign >,change +emittance /acility
a- 7oreign Currency ccountA
E=o#ernment of akistan has introduced many important reforms in
foreign e,change control in the county in /ebruary! 677J! for the purpose of
strengthening foreign e,change reser#e.F 'B( as an authori-ed commercial
bank offer the facility of foreign currency account in four currencies! "hich are
'S Dollar! 2apanese en! =erman )ark! and 'K ound sterling.
The foreign currency account facility by 'B( is a#ailable both for akistani
citi-en currency account is similar to opening of local currency account. The
account may be an indi#idual or $oint account. There are t"o types of foreign
currency account.
Current ccount
Saving ccount
i- Current ccountA
2ust like local currency current account holder no interest is gi#en to the
foreign currency account holder. /oreign %urrency N% are also e,empted from
,change remittance ser#ices
ii- Saving ccountA
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'B( offers a #ery handsome rate of return foreign currency sa#ing
accounts. The profit is paid in currency in "hich is opened. This account too is
e,empted form.
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griculture /inance
Industrial /inance
>,port /inance
Import /inance
The banks also ad#ance to small si-e businesses and construction companies
etc. )any 'B( Branches are ha#ing departments for granting ad#ances to the
borro"ers. 1ormally! it is responsible for performing the follo"ing functions.
a To handle all the cases of short or long term loans.
b To process all the cases concerned.
c To for"ard the cases for appro#al and consideration to the higher
authorities.
d Direct dealing "ith the borro"ers.
e To insure the disbursement of loan.
f To inform the high authorities about #arious loans.
'B( make ad#ances in the follo"ing "ays.
*a, #? CS' CREITA
Through this credit facility! the banker ad#ances loan to the borro"er
after ha#ing tangible asset as a security. )ain characteristics of this facility are
that the total amount is not gi#en to the borro"er at once rather it is gi#en in
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installments! or "hen o#er re*uired. The borro"er has to the interest only on
the amount outstanding against him.
The cash credit facility is gi#en either through by hypothecation or
pledging of goods. Some re*uirements are as under.
i- %ustody of stock remains "ith the borro"er.
ii- Bank lien on the stock.
iii- Stock hypothecated must be insured against fire etc.
iv- %ustomer must submit the stock report on monthly basis.
v- /re*uent stock #erification to be done by 'B(.
vi- Bank may send officers or staff in order to super#ise #erification
Some characteristics of pledging asset against loan. Stocks are pledged
"ith under banks lock and key.
Stock must be duly insured against for and burglary.
n monthly basis stock reports has to be prepared by the borro"er
duly incorporating deli#ery of goods! if any during the months.
Deli#ery of goodsNstock is made against cash payments.
*b, #? ISCOU+TI+8 #I%% O7 EFC'+8EA
This credit facility is a #ery ad#anced form of ad#ancing moneyNcredit to
the borro"er. It is also termed as factoring. In this facility! the bank purchases
the bills of beaching from the borro"er. The bank gi#es face #alue of the bill to
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the borro"er after deducting interest on the remaining period re*uired for the
bill to mature.
*c, #? O6ER R7T
Some time it happens that a reliable! regular customer may ask for a #ery
short period credit. The bank accommodates such customers through the facility
of o#er;drafting. In this facility the bank charges interest on the outstanding
amount only. This facility may be gi#en "ithout any security or is pro#ided
against some collateral. It might be a temporary facility or an o#er;draft;limit
may be sanctioned to the customer! "hich may be used again and again during a
certain period of time.
9-2 C%ER+CE 'OUSEA
It is an association of banks4 usually set up in a gi#en locality for the
urpose of inters changing credit claims. 1early! e#ery"here this function is
performed by the central bank of a country. But in cities "here there is a no
branch of central bank! other authori-ed banks perform this fiction. In akistan!
the areas "here there is no central bank branch the function of clearing house is
performed by 1ational Bank of akistan H1B.
In undertaking the process of inter changing credit the follo"ing
procedure is adopted. In banking business "hen creditor asks for some
payment! it is al"ays the choose through "hich the payment is asked for. But
there arises to situations "hen the payee for payment through che*ues. The
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payee may be account holder in the same bank i.e. of dra"er or he may not be
the account holder in the same bank.
Ahen the payee is an account holder in the same bank! then the che*ue is
directly transferred from one to the other. nd the total assets and liabilities of
the bank remains the same. Then in such cases the payee deposits che*ue in this
bank dra"n on some other bank. The bank "ith the che*ue is deposited
becomes the creditor of the dra"ers bank. The debtor bank "ill pay this amount
of the che*ue by transferring it from cash reser#es if there is no off setting
transaction.
In daily business of the bank! there are a number of che*ues deposited
"ith one bank! "hich are dra"n by other banks. The dra"er bank becomes
indebted to the bank in "hich the che*ues are deposited for collection. In the
same "ay the creditor banks also recei#e che*ues dra"n on other banking
gi#ing blooms of payment by them. 1o" it "ill be #ery incon#enient!
uneconomical for the bank to transfer cash for fulfilling reciprocal obligations.
The best! easiest and safest "ay "ill be to offset the reciprocal claims of each
other and transferring only the net amount due by any on the %learing 0ouse
pro#ides this facility.
The clearance house is the branch of central bank of akistan or in case of
area "here on central bank is a#ailable. The representati#e of each bank meets
at fi,ed time on all business day of "eek. This meeting is held in the bank
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performing duties of clearing house. The messenger of the #arious commercial
banks gathered at the clearance house and transferring che*ues payable by other
banks "hile collecting dra"n on their banks. summary sheet is prepared
describing the number of che*ues recei#ed and deli#ered by a bank at the
clearance house. 1ormally! the banks maintain t"o books for clearing house.
In@ar" clearing boo$-
Out@ar" clearing
#oo$.
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C'PTER :
SER6ICES & PROUCT
O7 U#%
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SER6UCES &PROUCT O7 U#%
In banking ser#ices U#%pro#ides a number of ser#ices. These ser#ices
include customer banking! merchant banking and corporate banking. The
follo"ing is the brief description of #arious ser#ices offered by the U#%to its
customers.
:-3 8eneral e4ositsA
Due to the e#er;increasing need for capital there are no" a fe" business
enterprises! "hich are carried! put totally "ith the o"ner5s e*uityNcapital. So
borro"ing is becoming an essential feature of today5s enterprise. But in case of
banking business borro"ing from outside sources is all the most #ital. nd this
is #ery common obser#ation in the banking business that in a gi#en bank5s
found treasures the borro"ed capital is much greater than its o"n capital. Bank
borro"s mostly in the form of #arious deposits the greater the difference
bet"een the rate of borro"ing and lending4 the greater "ill be the profit margin!
for the bank. But the bank look for"ard for more deposits! as this "ill create
more funds a#ailable for employment. So greater deposits "ill result in greater
return for the bank and as a result greater profit. In banking business these
deposits are the lifeblood of a bank. In deposit being the main ad#antage for the
customer is as debts.
Ahen bank recei#e a deposits from a customer a relationship of debtor
and creditor is established. %ustomer becomes creditor "hile bank takes the
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responsibilities of debtor. n recei#ing of deposits the ac*uired liability for that
much amount "hile becoming of the deposit! it can in#est any"here it deems
right "ithout consulting the creditor of the deposit. But it does not mean that the
bank becomes the sole o"ner of this amount! rather through an implicit
agreement the bank "ill be liable to pay the depositor money as and "hen the
depositor demand.
:-0 Current e4ositsA
'B( offers the facility of current aNc both in akistan rupees and foreign
currencies. n maintaining such accounts these is no restriction on the customer
residence. These accounts are usually maintained by businessman and business
concerns. It is become that they can take and deposit money as money times as
they deem right during the banking hours. s such these accounts are payable
on demand. In akistan on offer any interest. Some of the sol#ent features of
this aNc areas.
i. 1o restriction on number of "ith dra"ls from aNc5s and on prior notice is
re*uired for "ith dra"l.
ii. These Nc5s are regulated under the rules and regulation of SB especially
deposits of 6JJJ is free from all e,change control.
iii. %on#ersion of these funds into any currency and transfer for of these
finds into any country is not restricted.
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i#. The foreign currency Nc5s are acceptable as a collateral against rupee
loans.
#. In case of payment to third party standing instruction by customer is
re*uired.
#i. By debiting these aNc5s a T% can be obtained.
#ii. /or obtaining lockers facility preference is gi#en to foreign currency
Nc5s holders.
:-/ Saving e4ositsA
The main ob$ecti#e of maintaining sa#ing deposits in running status by
the bank is to de#elop sa#ing habits in the people of our country. Such people
may include young people! married or household "oman. These people can start
their aNc by depositing only a small amount at a time. These accounts can also
be opened in foreign currencies. Some year ago it "as not possible to "ithdra"
money from sa#ing aNc more than t"o times in a "eak and prior notice "as to
gi#en the bank for dra"ing money abo#e a certain le#el. This restriction is no"
remo#ed by SB and the customer can deposit and "ithdra" money as and
"hen re*uired by the client during the banking hour.
Some of the silent features are as un"erA
Interest is payable by the bank in accordance "ith the rates
announced by SB.
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1o restriction on the number of "ithdra"als and the amount of
"ithdra"als during a "eek.
The funds of this aNc can be utili-ed for purchasing =o#ernment
and other securities such as foreign e,change leader certificates! special
sa#ing certificates and foreign currency bearer certificate.
rincipal and interest earned there is on e,empt from income ta,
and
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:-9 7iDe" e4ositsA
These deposits are created by a single as such there are t"o transaction
in#ol#ed. ne is "hen somebody deposits the money and the other "hen the
customers "ithdra" the money after or before the due date. In case of
"ithdra"ing the deposit before maturity no interest is paid to the deposit holder.
The rate of return on time deposits #arious "ith the duration for "hen the
deposit is created. The duration #arious from a day as long as fi#e years.
:-: Uni cashA
1o" days carrying cash "hile going out of your place is #ery risky.
>#erybody "ants ma,imum security "hile keeping is money in his pocket.
eople make use of T% and other #arious credits cards for this purpose. 'B(
pro#ides such facility through '1I;%S0 the management of '1I;%S0 is
carried out in follo"ing "ays.
a- PI+ *Personal I"entification +umber,
ersonal identification number HI1 is #ery important number allotted
"hen a '1I;%S0 card is issued to the customer. This number is made uni*ue
by gi#ing four;digit can financial number and "hen it is used in con$unction
"ith the '1I;%S0 card is enable the customer to a#ail the cash point
facilities. The allotted I1 number is kept e#ent confidential form the bank staff
by printing it in a special number buy the computer on a pre;sealed! tamper
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proof I1 millers. These I1;)I((>+S can only be seen "hen the customer
opens the en#elope.
b- Pin ChangeA
Ahen a customer after a#ailing the facility first time "ith the '1I;%S0
card! heNshe "ill be re*uired to change I1 Hersonal Identification number is
sought from security point of #ie". The change number selected by the
customer should be such that the customer can easily remember it and cannot be
easily guessed by other.
c- Car" Serial +umberA
%ard serial number is gi#en to a particular '1I;%S0 card "hich the
customer can kno" by looking at the card. The first line contains the '1I;
%S0 card serial number "ith the customer5s name! aNc number and card
e,piry date is follo"ed in the subse*uent lines.
"- >ith"ra@al %imitA
This limit is determined at the time of depositing money for a#ailing the
facility of '1I;%S0 card. The limit depends upon money deposited.
e- Cash PointsA
To facilitate the process of getting money through '1I;%S0 card a
number of cash points are a#ailable in the country. The machines may be used
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round the clock. '1I;%S0 card are used in these machines for dra"ing
money from the account and for a#ailing a number of other facilities such as the
follo"ing.
i- Balance In*uiry
ii- )ini Statement
iii- I1 %hange
:-2 U#% >%%ET 6IS CRA
'B( A((>T 3IS is a secure inno#ati#e card pro#iding the customers
the benefits of both an T) Hautomatic tailor machine and a debit card locally
and internationally.
Aith 'B(3IS A>((>T ! the customers ha#e the po"er of using your
card at more than 7?8 T)s across the country and o#er 7JJ!JJJ 3IS T)
locations "orld"ide in 68J countries and o#er 8!JJJ +IC locations across the
nations and ?? millions 3IS merchant locations "orld"ide. It can be used
?:hour day!
9 days a "eek at all 'B( T)s as "ell as others T)s in 6(ink & )1>T
net"ork.
T( CR US8EA
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6. Insert the card in to the slot labeled Einsert cardF.
?. Select the (anguage.
@. 'se the keypad to enter the personal Identification numberHI1.
(I+ (E+UEA
In the main menu! select an icon to conduct a transact
CS' >IT'R>%A
6. Select EcashF "ithdra"alF from the main menu.
?. Select the account type.
@. >nter the re*uired amount in multiples of +s.8JJ and press K.
(I+I STTE(E+TA
6. Select mini statement from the main menu.
?. Select the account type.
@. %ollect the mini statement.
PI+ C'+8EA
6. Select Epin changeF from the menu.
?. 'se the keypad to enter your ne" I1.
@. +eenter your ne" I1 to confirm.
7U+S TR+S7ER-H/rom 'B( to 'B( to others banksO
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6. Select Efunds transferF from the menu.
?. Select the type of funds transfer you to "ish to conduct.
@. Select the account from "hich you "ish to transfer funds.
:. Select the account to "hich you "ish to transfer funds! or type in the
account number according to the gi#en layout.
8. Type in the amount of funds that you "ish to transfer.
. %onfirm the account name and number and amount of funds to e,ecute
The /unds transfer.
E#IT CR US8EA
6. fter shopping! present the 'B( Aallet to the cashier the 'B(
Aallet
is accepted at all outlets e,hibiting the 3IS logo as "ell as +IC logo
displaying machines.
?. The cashier "ill s"ipe your 'B( Aallet through the point of sale
HS Terminal and enter the purchase amount.
@. It is as simple as buy! s"ipe & sign. Simply purchase the item!
s"ipe the card
t the S terminal and sign on the receipt generated. /or transactions
on the +IC net"ork simply enter the I1 to complete the transactions.
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%O+S
Cha4ter 2
S>OT +%?SIS
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S>OT +%?SIS
The "ord ESATF consists of four "ords! "hich are stands for
Strengths! "eaknesses! opportunities and threats! respecti#ely.
Through the ESATF nalysis techni*ue one can analy-e the present
condition and performance of a gi#en organi-ation and can prepares plans for
the future.
In the SAT nalysis of 'B( the follo"ing points can be discussed in brief.
2-3 STRE+8T'SA
Its Strengths are as follo"s.
0a#ing reputation for high customer banking ser#ices.
@rdlargest Bank of akistan
>asy asses to branch locality.
(arge net"ork.
rofessional and skilled management.
Aell co;coordinated branch office system.
>,perienced personnel.
Strong loyal customer group.
>,cellent competiti#e skills.
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Sound le#el of deposits.
>,cellent promotional and marketing campaigns.
2-0 >E!+ESSESA
Aeaknesses is something an organi-ation lakes at doing that for 'B( these are.
%ustomer ha#ing accounts "ith small amounts are not gi#en the same
attention gi#en to those "ith large amounts.
Security system of 'B( main branch bannu #ery careless
)ost of employees are o#erloaded "ith the "ork and promotion is also not
timely.
(o" salaries to staff.
olitical inter presence.
(o" market #alue of the bank5s stock.
Bad reco#ery of o#erdue ad#ances.
'n;satisfactory "orking condition of branches.
1o a#ailability of sophisticated e*uipments in branches.
In efficient system of recruiting and selecting of personnel.
2-/ OPPORTU+ITIESA
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n e,ternal situation! "hich an organi-ation can benefit from is called
opportunity.
Increase the ser#ing customer group.
Due to efficient and e,perienced management group! 'B( can
impro#e and e,pand its foreign operations successfully.
>nter ne" markets.
Increase product line to ser#e large range of customers needs.
0iring of "ell;*ualified personnel in the "ork force.
Deployment of sophisticated technology in offices and branches.
2-9 T'RETSA
Increase the number of ne" local and foreign banks.
(o" moral of employees.
olitical interference in the affairs of the bank.
(ake of consistence in policies due to olitical instability.
(o" sa#ing rated in the country.
>conomic recession in the country.
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This ESATF nalysis is a mirror to the bank o its present condition.
/rom this analysis "e can conclude that the bank has done some professional
changes in its banking system. The management can de#elop elaborated strategy
planes for capitali-ation the a#ailable opportunities. ne area "here the bank
has done some "ork is the impro#ement in customer ser#ices.
The bank should maintain principle of professional management and adhere the
sound and sophisticated banking rules and regulations in order to build
confidence of people in the institution
CO+C%USIO+A
fter the establishment of 'B( in the year of 6787! the bank "as
successful in achie#ing some of its ob$ecti#es. In the #ery first the bank earned a
handsome profit.
fter the e,hausti#e era of nationali-ation! the bank is no" transforming
to pri#ate o"nership again. The decade of J5s "as dominated by on
e,ceptional increase in economic acti#ities. This result in bringing #arious
changes in the management and structure of the commercial banks. In area of
management more professional "ere brought in and the same "as done "ith the
structure.
'B( "as not an e,ception to these changes. In the last decade of the century the
bank had "itnessed #ery bad banking business. To rebuild the bank ne"
professional people "ere inducted under the leadership of )r.
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'nder this leadership the bank introduced incenti#e schemes and products such
as %+))D!
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Increasing assets and decreasing e,penses through letter
management.
laying more responsible role in the social en#ironment of the
society meaning full filling the social obligations as "ell.
C'PTER