United_Bank

Banking operations and services are one of the basic needs of an economy. These include acceptance of deposits and disbursement of advances to individuals and others at higher rates. Banks perform various fundamental factions, which are directly or indirectly contributory towards economic and social development of countries. UBL, a commercial bank was established in 1959 as result of reckless efforts made by Agha Hassan Abidi. The UBL has shown the fastest growth pattern and in a period of just 27 years became the second largest bank of Pakistan. The bank image however adversely destroyed when it suffered heavy losses during its nationalization period due to political and other factors. The bank is showing re-emerging indications as is evident from its financial statements. UBL on October 19, 2002 was privatized and bought by two financially sound parties of international repute i.e. best way group and Abu Dhabi group holding 51% of the banks share and thus has emerged as the largest private bank surpassing MCB. The purpose of this report is to study operations and analyze performance of UBL to see whether the bank is successful in its operational performance or not, and recommending possible solutions for problems. For meeting the purpose both secondary and primary data have been used. The whole report has been divided into five main sections as describe below: Section I is introduction to the report and briefly describes the scope, purpose, methodology and limitations faced during the preparation of the report. Section II is the review portion and contains five chapters. First chapter is introducing the organization and remaining four chapters are explaining operations and relevant broader but comprehensive set of information of the functional departments of the bank so that readers of this report should be able to gain sufficient knowledge of the processing and procedures of the operations carried out by these departments. However in the chapter pertaining to foreign exchange department main focus is places on the payments regulations and procedures of letter of credits in the light of foreign exchange regulation Act, 1947. Section III involves the analysis part of the report and is comprising of two chapters. As an internee I was deeply concerned about the performance level of the UBL and therefore tried to analyze the bank financial performance that is included in chapter 4, this chapter reveals that the bank is trying to regain its position in the present more dynamic and competitive environment. Chapter 5 is the critical analysis of the departments and its functions. SWOT analysis is an integral part of this chapter. Major findings such as mark up expense of the bank have reduced and administrative expenses have shown increase. Non-performing advances have reduced; deposits show consistency. Due to lack of job rotation opportunity and lack of informal group existence, employees do not share each other workload. The recent downsizing hustle and bustle trends have affected bank’s efficiency due to lay-off survival syndrome. Presently about 1100 employees have been placed in surplus pools that are unaware of their future. Motivation level of employees is not satisfactory which effects their own and as well as performance of the organization. In proportion to number of accounts and functions performed sizes of branch’s buildings are small. Newly developed account opening form carries restricted space where only two applicant’s names can be incorporated. Sector IV covers the recommendation part and I, as an internee, have proposed training for developing managerial leadership should be provided. Political interference in placements etc. should be discouraged. Exercise should be evolved to bring needed cultural and other management changes. Recruitment policies should be changed, MBA’s and other business related qualified individuals should be hired. HRD should frequently conduct refresher courses and should focus on designing new courses to build organizational image and good will. Computer training courses should be imparted. Staffs, who deal with credit, should be properly trained for their jobs. Use of cheap means for posting etc. should be curbed. Customer orientation culture should be developed among employees. For enhancing motivation level, fair and clear career development policies should be implemented. Relationship managers should be trained to correctly access credit related risks. Credit officers should be enabled to carry out proper and correct documentation and should be equipped with knowledge and skill to analyze, verify and maintain securities in handsome manner. Various administrative reforms should be made to resolve quickly default cases. Marketing department at Hub branches should be created. All employees should participate in marketing operations of the bank. Marketing at Desk concepts should be practiced. Proper promotional campaign on media should be carried out. Marketing research and development department of the bank should carry out situational analysis and develop short medium and long-term plans. Section V comprise three action plans with the hope that if implemented properly will enhance the bank’s overall productivity and will also enable it to compete more efficiently and effectively. These plans are related to exploration of new opportunity present in the agriculture sector, effective management and recovery of advances and marketing activities respectively.