bank management final project[1]

7/31/2019 Bank Management FINAL PROJECT[1]

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Bank Management

Final Project

Submitted to: Prof. Tehseen

Submitted By:

Somia Ibrahim l1f08bbam2039

Saira Javed l1f08bbam2132

Umair Tariq l1f08bbam0163

Date of Submission: 19th

Jan, 2012
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Vision

To be a world class bank dedicated to excellence, and to surpass the highest

expectations of our customers and all other stakeholders

Mission

Set the highest industry standard for quality, across all areas of operation, on a

sustained basis

Optimize people, processes and technology to deliver the best possible financial

solution to our customers

Become the most sought after investment, and Be recognized as the employer of choice

History of United Bank Limited (UBL)

The history of UBL can be divided into four main Phases

1 . F o r m u l a t i o n

2 . N a t i o n a l i z a t i o n

3 . P r i v a t i z a t i o n

4 . T o d a y

1. Formulation

In June 1957, Mr. Agha Hassan Abidi decided to open a Bank different from others, to

provide modern facilities to trade and industry and to promote thrift and habit of saving

amount common there by stimulating the economy as a whole. Necessary formalities

completed for obtaining registration certificate from State Bank of Pakistan to perform

business activities. After passing through all these formalities on 7th November, 1959

United Bank Ltd came into existence as a Schedule bank. The Head office of the Bank


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was established in the New Jubilee Insurance House, 1.1

Chandrigar Road Karachi. It was registered as a joint stock

company. The bank was incorporated with an Authorized Capital of Rs 20,000,000 and

issued and subscribed and paid up capital of RS 10, 00,000. Saigol family owned it and

Agha Hassan Abedi was its first managing Director. It had posted a profit of 0.7 million

in its first year of operation with just eight branches at Karachi.

2. Nationalization

As a policy of nationalization, fourteen commercial banks were merged into five big

banks. So consequently on 21st December 1974 Commerce Bank and Union bank was

merged with the UBL. Mr.Mushtaq Ahmed khan Yousafi took over the charge of UBL. Now, there

are six directors, a secretary and a president.

3. Privatization of UBL

UBL was the largest privatization attempted by the government of Pakistan, launched in

June 2001, with 21 interested parties.

It was impacted by the adverse developments of the September 11; 2001and was finally

concluded in October 2002, which left stage only three bidders. The consortium

comprising Best way Group (BG), out of the UK and Abu Dhabi Group (ADG) from the

UAE were finally the winners at is cord price. Sale proceed was Rs 12350 million. This

signaled the strong confidence reposed by these investor groups, in the improved

governance of the country, the economic potential, the banking opportunity and the

existing management of the bank.

4. UBL today

Today the bank has taken progressive step.

Change the loge

The United Bank Limited (UBL) management has launched its new corporate identity

and changed its 44 year-old-logo following its privatization.

UBL online


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Now access your account from 71 cities across Pakistan. Our

network is growing at an amazing pace and now you can avail

services like cash withdrawal, payments, deposit, stop payment, acquisition of account

statement and many more from more than 350 online branches.

Business Partner9-5 Non-Stop Banking

Banking at your own convenience has been made possible. UBL now offers 9-5 Non-

Stop Banking service at more than 450 branches across Pakistan.

Countrywide Instant Cheque Clearance

Submit a cheque in Karachi and get it cleared in Peshawar

It begun with a vision, a vision of unparallel progress and unmatched excellence true to

the spirit of the era! November 7th 1959, Pakistan witnessed an event that wouldchange the way we banked forever. It was not just the inauguration of UBLs first branch

at I.I. Chundrigar; it wasalso the birth of the culture of service, a culture of innovation

and a culture of financial excellence!

By June 1960, shortly after six months of opening its doors to the public, UBL had

branches in:

Karachi Dacca

Lahore

Lyallpur

Chittagong and Narayanganj

In 1963, UBL became the first bank in Pakistan to have a branch overseas- on WilliamStreet in London, United Kingdom. True to our promise of providing service and care

beyond the ordinary to our customers, UBL and You have had a history. The first saving

scheme for school going children was launched as early as 1960 or the formation of

Pakistans first Staff College of employees in 1964, UBL, through the motivation of its

staff and the trust of its customers, continued to grow at a spectacular pace. In 1967,


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UBL had hit the dawn on information in terms of technology, by

introducing computer banking to Pakistan and in 1971, UBL once

again paved the way by launching 3 online branches in Karachi. The newly formed state

of Pakistan was witnessing the boom of industries and commerce cannoned by a

bank that believed in the potential growth of Pakistan. Small wonder then, by 1978, UBL

had a pledged economic department, had acquired two international banks. UBL also

launched supervised credit and small loan schemes for small to medium sized firms as

well as agriculture and had made for itself, a strong international presence for we had

branches in 4 continents.

Throughout its history, UBL has kept pace with- and often exceeded the changing

needs of changing times. Keeping the tradition of innovation alive, UBL introducedPakistans first credit card, the UNICARD in 70s and left its mark by launching the Pak

Rupees traveler cheques in 1971. Staying true to its roots, UBL was also the first bank

to have an Islamic banking division and the first to introduce e-banking facilities at Hajj.

In the 1990s the government of Pakistan decided to change the face of banking by

creating a blueprint to privatize UBL. At this point, financial experts were called on board

to set the bank back on course, and with implementation of relevant changes, the

government privatized the bank in the year 2002 Best way and Al Ayaan collaborated,

forming the cornerstone for the UBL of tomorrow.

Today, UBL opens its eyes to a new vision every day, a vision of resurgent excellence

and renewed commitment to our customers. 52 years into our glorious history UBL is

now part of one of the worlds largest financial services groups.

Our deposit product portfolio offers an eclectic mix for all types of financial

requirements. Whether you are an individual interested in opening a savings account, or

a businessman wanting to maintain a foreign currency account, or a small business with

a requirement of a business account for your daily transactions, our deposit products

offer you the range you require. Check out our extensive deposit products and services

and find one especially suited to your needs.


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INTRODUCTION:

Over 380 billion assets

Over 1100 branches in Pakistan and 15 overseas branches

UBL has one of the largest and strongest balance sheets amongst banks in

Pakistan

Merger of treasury and capital markets

Best domestic provider of FX services

The narrowest bid/ask spreads and the fastest quotes

It started trading currency option in 2005

It acquired the status of authorized dealer (ADD)

Over 1100 online branches in Pakistan as well as in overseas

Networking:

UBL has a total of 1,059 branches (including 15 overseas branches) of which 640

branches have on-line connectivity (FY05: 496) with the head-office through an ISDN or

satellite connection while the remaining are still to be brought on-line. Out of the total

off-line branches there are at least 211 branches in the far-flung areas of the country(FATA, parts of Kashmir) which are not automated. Critical information from these

offices is physically delivered to a nearby located main branch.

International networking of UBL includes the following countries having international

branches subsidiaries and representative offices:

1. Aden Branch

2. USA

New York Branch

3. OBU EPZ

EPZ Branch (Karachi)

4. IRAN

5. KAZAKHSTAN


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6. CHINA

7. SWITZERLAND

United Bank AG (Zurich)

8. UK

United National Bank Limited

9. OMAN

I. Ruwi Branch

II. Salalah Branch

III. Sohar Branch

IV. Ghoubra Branch

V. Industrial Area Salalah Branch

10. UAE

I. Deira Branch

II. Bur Dubai Branch

III. Al-Barsha Sheikh Zayed Road Branch

IV. Sharjah Branch

V. Khalifa Main BranchVI. Sheikh Hamdan Road Branch

VII. Musaffah Branch

VIII. Al-Ain Branch

11. BAHRAIN

I. Manama Branch

II. Seef Branch

III. Muharraq Branch


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12. QATAR

I. Corniche Main Branch

II. Salwa Road Branch

13. YEMEN

I. Sana'a Branch

II. Hodeidah Branch

Financial Highlights of UBL (2009-2010):

UBL achieved a profit after tax of Rs 11.2 billion which is 21% higher than the

corresponding period last year and translates into earnings per share of Rs 9.12 (2009:Rs 7.51). On a consolidated basis, UBL achieved a profit after tax of Rs 11 billion, an

increase of 16% over

2009.

Despite the challenging economic environment, UBL has achieved a profit before tax of

Rs 17.7 billion. This is 26% higher than last year as a result of continued improvement

in operating efficiency and margins. Provisions for the year declined substantially due to

the Bank's prudent approach given the difficult credit environment whilst the NPL

formation has also reduced year on year.


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Net interest income before provisions increased to Rs 34.1 billion, 4% higher than last

year. The Bank's low cost deposit efforts resulted in an 80 bps reduction in the cost of

deposits over last year. However, the yield on earning assets declined as average 6M

KIBOR was 39 bps lower in 2010 compared to 2009. Consequently, net interest margin

increased from 6.9% in 2009 to 7.1% in 2010.

Types of loans and volume of bank loans:

UBL offers the following loan facilities including:

Business Financing loan

Running Financing Facility

Auto Loans

Small Loans

Personal Loans

Home Loans Farm Loans

Production Loans

Development Loans

Tractor and Vehicle Finance

Non-Farm Loans:


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Livestock Financing

Fisheries Financing

Business lineBusiness Financing LoanWith UBL Business Financing facility, you can now take your business to greater and

newer heights, and achieve the level of success that you truly deserve

Cash line

Running Financing Facility

UBL Cash line is aimed to make your life easierZINADGEE

ASAAN. Whether you are a salaried individual or a

businessman

Drive

Auto Loan

UBL Drive is a unique auto financing product which offers you features, options and

flexibility unmatched by any other bank, because at UBL, You come first

Silah Mila

UBL has designed a campaign for the first time in Pakistan to

acknowledge and reward customers who have shown excellent

performance in their loan repayments with other banks
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SMALL LOANS

Under the Small Business Scheme, UBL is providing loans on easy terms to those who

wish to set up their own small-scale business. This scheme is aimed at spreading

prosperity in the country by reducing unemployment.

As more and more people start their own industrial units, the country will move steadily

towards economic self-reliance.

Personal Loan

Higher loan amounts (Up to 20 multiples of salary)

Convenient repayment schedules (Up to 48 months loan tenor)

Competitive interest rates

Mortgages Baitna Home Loans

Financing of up to AED six million

Repayment period of up to 25 years

Salary transfer not mandatory

Home Loan Facility

UBL Address empowers you to become the proud owner of a home by offering a variety

of product and pricing options that are flexible yet affordable.

Production Loan

Financing is available for Major and Minor crops across Pakistan. Main purpose of

financing is to facilitate farmers to purchase Agricultural Inputs such as Seeds,

Fertilizers, Pesticides, Sprayers, hired labor etc.


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Development Loan

Land Development, Equipments and Machinery

Financing for Land Improvement, Water course improvement, Tube wells, Lift pumps,Deep turbine pumps, Cotton pickers, Go down, Cold Storage, Harvester, Thresher, etc

Loan Tenure 1 to 5 years

Lump sum disbursement of the limit for a specified period.

Repayment in installments (Principal with markup).

Repayment mode monthly, quarterly and half yearly

Minimum Amount PKR 30,000

Maximum Amount as per requirement of Farmer

Tractor & Vehicle Finance

To purchase Tractors, Delivery Vans, Mini Trucks, Motor Cycle and other vehicles used

for marketing Agric Products

Loan Tenure

1 to 3 years for Motor Cycle

1 to 7 years for Tractor

1 to 5 years for other 4 wheel vehicles

Lump sum disbursement of the limit for a specified period.

Repayment in installments (Principal with markup).

Repayment mode monthly, quarterly and half yearly


Maximum Amount PKR 1,500,000


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Non Farm Loans

Livestock Financing

Dairy Farming, Meat Farming, Fattening of Animals, Rearing of Animals, Construction of

Sheds, Milk storage tanks, acquire and establish modern and efficient livestock

facilities.


Monthly / Quarterly repayment mode for Dairy Farmers

Monthly / Quarterly / Half Yearly repayment mode for Meat Farmers


Maximum Amount as per requirement

Poultry Farm structure and equipments, Hatchery farm structure and equipments, Feed Mills,

Purchase of Chicks, Feed, Medicines, Storage tanks, Cold storage, Construction of shed, etc.


Monthly / Quarterly repayment mode for all loans


Maximum Amount as per requirement

Fisheries Financing

Fish seed, Fish feed, Manufacturing, Construction of pond, Curing and Dying by

fishermen, etc.

Terms & conditions

Clean CIB


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1 to 3 years for Motor Cycle

Markup payment frequency quarterly / half yearly for

working capital loan

Installment repayment frequency monthly / quarterly / half yearly / yearly for Term

finance loans

Minimum landholding 10 acres for Tractor Financing

Equity for Tractor 10%

Equity for 4 wheelers except Tractor is 25%

Volume of UBL Loans:

LIABILITIES 2010 2009

Bills Payable 5045815 5147259

Borrowings 45104849 35144823

Deposits and Other Accounts 550645767 492036103

Sub-Ordinated Loans 11985748 11989800

Other Liabilities 17587735 14461725


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The table shows the UBL borrowings from SBP:


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Investments:

The United Bank has done investments in following areas:

For 2010In held for securities the total investment done by UBL is almost 16629658000

rupees which includes market treasury bills, Pakistan Investment Bonds, Ordinary

shares of listed companies, Foreign securities, term finance certificates, Govt. of

Pakistan-Eurobonds, Units of mutual funds and Sukuk Bonds.

For 2010 available for sale securities the total investment done by UBL is almost

109960827000 rupees and in held to maturity securities the bank has done total

investment of almost 10346585000 rupees.In associates 7666215000 rupees investment has been done in the year of 2010

including United Growth and Income Fund, UBL liquidity plus fund, United composite

Islamic Fund, United Islamic Income Fund, United Stock Advantage Fund, UBL

Participation Protected Plan, UBL capital protected fund-II, UBL savings income fund,

UBL Islamic retirement savings fund, UBL retirement savings fund, UBL insurers limited

and Oman united exchange company, Muscat. Hence the total investment by the UBL

in 2010 is approximately of 231717214000 after minimizing the deficits.

External Rating of Bank:

Karachi, June 28, 2011: JCR-VIS Credit Rating Company Limited (JCR-VIS) has

reaffirmed the entity ratings of United Bank Limited (UBL) at 'AA+/A-1+' (Double A

Plus/A-One Plus). Ratings of the four outstanding subordinated debt instruments, TFC-

1, TFC-2, TFC-3 and TFC-4, issued by UBL have also been reaffirmed at 'AA' (Double

A). Outlook on the assigned ratings is 'Stable'. Whereas, Capital Intelligence (CI), the

international credit rating agency, has reaffirmed UBLs Foreign

Currency longterm rating at B, while its Foreign Currency shortterm rating has been


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upgraded from C to B in line with CIs sovereign ratings action on

Pakistan. In addition, the Banks Financial Strength rating has

been reaffirmed at BB+, with the Outlook upgraded from

Negative to Stable based on the Banks strong performance in 2009 and the first half of

2010.

Detail of Major Assets & Liabilities of Bank:
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The table below shows the credit rating of private banks:


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Types of Deposits & Volume of deposits

as Capital Debt:

United Bank Limited deposit product portfolio offers an eclectic mix for all types of financial

requirements. Whether you are an individual interested in opening a savings account, or a

businessman wanting to maintain a foreign currency account, or a small business with a

requirement of a business account for your daily transactions, our deposit products offer you the

range you require. Followings are the deposits that UBL offers:

1) UBL Business Partner

2) UBL Business Partner Plus

3) Rupee Transactional Account

4) UBL UniFlex

5) UBL Unisaver

6) Certificate of Deposit

7) Foreign Currency Savings

8) Foreign Currency Term Deposits Receipts

9) Regular Term Deposits Receipts

10) Special Notice Deposits Receipts

11) UBL Basic Banking Account

12) UBL First Minor Savings Account
https://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLBusinessPartner.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLBusinessPartnerPlus.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/RupeeTransactionalAccount.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLUniFlex.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLUnisaver.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/CertificateOfDeposit.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/ForeignCurrencySavings.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/ForeignCurrencyTermDepositsReceipts.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/RegularTermDepositsReceipts.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/SpecialNoticeDepositsReceipts.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/ublBasicBankingAccount.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLFirstMinorSavingsAccount.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLFirstMinorSavingsAccount.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/ublBasicBankingAccount.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/SpecialNoticeDepositsReceipts.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/RegularTermDepositsReceipts.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/ForeignCurrencyTermDepositsReceipts.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/ForeignCurrencySavings.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/CertificateOfDeposit.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLUnisaver.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLUniFlex.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/RupeeTransactionalAccount.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLBusinessPartnerPlus.aspxhttps://www.ubldirect.com/corporate/BankingServices/DepositProducts/UBLBusinessPartner.aspx


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Capital debt of UBL:
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Investment:

Investments of the united bank limited, other than investments in associates are

classified as held for trading, held-to-maturity and available for sale.

Held for trading:

These are securities which are either acquired for generating a profit from short-term

fluctuations in market prices, interest rate movements, and dealers margin or are

securities included in a portfolio in which a pattern of short-term profit taking exists.

Held to maturity:

These are securities with fixed or determinable payments and fixed maturity in respect

of which the Group has the positive intent and ability to hold to maturity.

Available for sale:

These are investments, other than those in associates that do not fall under the held fortrading or held to maturity categories.

bank management final project[1]

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