MBAMIS

www.vustudents.net

United Bank Limited

Internship Report

Overview One of the largest banks in Pakistan Agha Hasan Abedi founded this United bank

Ltd in November, 7 1959 The government of Pakistan nationalized it in

1971. In 2002, the Government of Pakistan sold it in

an open auction to a consortium of Abu Dhabi and Bestway Groups

In 2002, it merged its operations in the UK belonging with the National bank of Pakistan.

Brief introduction of United Bank Limited

Product lines

UBL DriveThe UBL Credit CardVISA Debit CardUBL Wallet UBL Profit CODPersonal loanCar financingMortgageBusiness Finance

Brief introduction of United Bank LimitedBusiness Volume

Share capital 1012 m

Reserves 1806 b

Assets 620 b

Advances 400 b

Market share Rate 9.6%

Deposit 500 b

Earning per share 8.5

Profit before tax 10.6 b

Profit after tax 6.9 b

Brief introduction of United Bank Limited

National Bank of PakistanHabib Bank LimitedAllied Bank LimitedMCB LimitedStandard Chartered BankThe Bank of Punjab

Competitors

Introduction Of Branch

This Branch is located in machianwala (1360).

It is 15 km far from district Vehari. This branch belongs to Sahiwal zone. It has 9000 account holders. It deals with accept deposits, remitting of

funds, online banking and loan facility. This branch has a well managed staff.

Organizational hierarchy chart

President

Group Head Investment Banking

Head Project and Structured Finance

Head syndication Head Equity and Advisory

Transactor Manager Transactor Transactor Manager Transactor

Transactor/Research Transactor

Manager Transactor

Asset Manager Trustee Function

Organization Management Analysis (OMA)

skilled management workshops to train its employeesmanage workshops manually or quarterly basismanagement provides better service to customers lack of employees in UBL so the work presser

increases in each employee.

Training Program

Filling the Account opening formFilling of deposit slipsFilling the cheques for customersCustomers guidance Entry of cheque book

Structure and Functions of the MIS Department

Department hierarchy

Manager

Assistance

Technician

Structure and Functions of the MIS Department

responsibilities of the department

Bild & maintain the interl network Develops applications according to the needsProper working of computer system and internet

securityKeep and maintain database according to

demand.

Structure and Functions of the MIS Department

functions of the department

Enterprise resource planningProper working of computer system Choose and develop network design Maintained of hardware and software Employees training for the usage of

technology

Critical AnalysisComparison of organization’s strategies with its vision and

mission statements

Vision statement To be a world class bank dedicated to excellence, and to surpass the highest expectations of our customers and all other stakeholders.Mission Statement ExcellenceMeeting ever-growing standards Consistent in our growthBest in class in any business we initiate Strive to provide world class service Your expectations-Our Goals Wow impact on every encounter

Critical AnalysisComparison of organization’s practices with

the theoretical concepts

Set goals and make strategies to achieve targets mention in vision and mission statement. Set goals in various departments and achieves them. 31/ Dec/ 2009 to 31/Dec / 2010Deposit Department:will increase from 125.m to 156 m till 2010Advance DepartmentWill increase from 1.560 to 1.740 mProfits will increase from 2.537 to 3.290 m

Organization’s Analysis

Strengths: 3rd largest Bank of Pakistan in term

of deposits well trained personnel Innovation through products Improved operational efficiency

Weaknesses: Shortage of system and

employees work pressure Lack of small infrastructure in

small branches. Lack of promotion

Opportunities: Innovate the product line Services that satisfy the customers. Advertising

Proper orientation of employees

Threats: advertising campaign Continuous downfall of the

country economy since the last few years

SWOT Analysis

Organization’s AnalysisInternal Factor Evaluation Matrix

Internal Strength Weight Rating Weighted Score

1.3rd largest Bank of Pakistan in term of deposits 0.10 4 0.40

1.1st largest Privatized Bank of Pakistan 0.12 4 0.48

1.Improved operational efficiency as to its past 0.04 3 0.12

1.Extensive Branch network 0.08 4 0.32

1.UBL Product positioning is very effective 0.04 3 0.12

1.standard of living 0.05 3 0.15

1.Stands in the list of Profitable bank in stock exchange 0.04 3 0.12

1.Largest number of corporate deals by any bank is Pakistan 0.08 4 0.32

1.Attractive Salaries and incentives for employees 0.15 4 0.60

1.Overseas Branches 0.05 3 0.15

Internal Weakness      

In some regions UBLservice is not good as compared to others 0.10 1 0.10

1.UBL is a step behind in using new technology as compared to other banks 0.04 2 0.08

1.All branches need orientation for customer dealing. 0.03 2 0.06

1.Security system in most of the branches is not up to the mark. 0.04 1 0.04

1.Most of the employees are overload with the work and promotion is also not timely 0.04 1 0.04

Total Weighted Score 1 3.1

Organization’s AnalysisExternal Factor Evaluation Matrix

Opportunities Weight Rating Weighted Score

Keep on giving services that satisfy the customers 0.11 4 0.44

Proper orientation of employees in all branches can help them to cope up with foreign banks

0.12 3 0.36

New technology and modern business processes 0.10 2 0.20

Call centre services should be improved to enhance their network 0.15 4 0.60

Innovate the product line 0.16 3 0.48

Threats

Large and increasing competition 0.10 1 0.10

Consistent policy for products 0.05 3 0.15

Lack of huge deposits 0.08 2 0.16

High operating costs 0.05 2 0.10

The future trend is another threat because UBL is offering high markup rates. This additional price is also a threat for UBL.

0.08 1 0.08

Total Weighted Score 1 2.67

Organization’s AnalysisTOWS Matrix

SO Strategies:By utilizing internal strengths e.g. good financial position, well trained and skilled employees and also its internal resources UBL can get opportunity for external assets. WO Strategies:UBL have the weakness of lake of staff, it will recruit more skilled staff to less the work burden and also increase employees abilities. ST Strategies: UBL uses this strategy when various banks opening new branches in order to overcome competitive threats. WT Strategies: UBL trained it employees with the modern technology to overcome the technology effects.

Organization’s AnalysisCompetitive Profile Matrix

UBL HBL ABL

Critical Success Factors Weight Rating Weighted Score

Rating Weighted Score

Rating Weighted Score

Advertising 0.20 3 0.60 2 0.40 4 0.80

Product quality 0.15 2 0.30 3 0.45 3 0.45

Market share 0.10 4 0.40 2 0.20 2 0.20

Competitiveness 0.10 3 0.30 4 0.40 2 0.20

Management 0.15 4 0.60 3 0.45 2 0.30

Financial position 0.10 3 0.30 2 0.20 3 0.30

Customer loyality 0.15 2 0.30 3 0.45 2 0.30

Globel expention 0.05 3 0.15 2 0.10 3 0.15

Total 1.00 2.95 2.65 2.70

Organization’s AnalysisBCG Growth-Share Matrix

Stars UBL is now in a position of high market share in high growth market. UBL as a star generate large amounts of cash because it has strong relative market share, but also consume large amounts of cash

because of high growth rate. Question Marks Some new products having low market share in high growth market because buyers have yet to discover them. UBL uses marketing strategy to get markets to adopt these products. UBL goal must be to grow the businces to become a star.

Cash CowsUBL nearly will get high market share in a mature market. Soon UBL will achieve competitive advantage, when it becomes cash cows then it have high profit margins and

generate a lot of cash flow. DogsDogs are with low market share in low growth market. UBL should maintain its market shares and make more investment to pervent to become dogs.

Organization’s AnalysisPorter Five Forces Matrix

Degree of RivalryThe strength of rival of competing firms e.g. UBL, HBL and ABL is powerful. It is most likely to be high in these banks because there is a threat of substitute products and existing power of suppliers and buyers in the market.

Threat of Entry If same firms say UBL, HBL working and a new bank ABL enters will show the balance between these three banks competing in the market. It also refers ABL entry may become threat or opportunity for any one

The Threat of Substitutes The threat of substitute products pose to an industry's profitability depends on the relative price-to-performance ratios of the different types of products or services.

Buyer Power The most important determinants of buyer power are the size and the concentration of customers. The buyer’s power illustrates customer’s impact on an industry. When buyer power is strong, its relationship to UBL becomes closer

Supplier Power If UBL have the ability to charge customers different prices in line with differences in the value created for each of those buyers usually indicates that the market is characterized by high supplier power and at the same time by low buyer power.

Organization’s AnalysisAsnoff Matrix

Market penetrationUBL uses this strategy to increase its market shares by increasing sales of current products. UBL achieve it by a combination of competitive pricing strategies, advertising, sales promotion and more resources dedicated to personal selling.

Market developmentUBL uses this strategy to sell its existing products into new markets. UBL uses different pricing policies, new product dimensions and develop new distribution channels to increase sales.

Product developmentUBL uses this strategy by increasing product development and selling it to existing markets. UBL modified its products to according customer’s needs and wants and which

are demanded in the existing market DiversificationUBL adopt diversification strategy, so it takes a clear idea about what it expects to gain from this strategy and an honest assessment of the risks

Conclusion

Efficient management Employees are cooperative. UBL focus on the customer need and

fulfill it. All the transactions are entered into

computer system. It’s an efficiency of UBL.

I enjoyed my internship in UBL because its very helpful to know the real life working environment.

Recommendations

UBL must concentrate on the promotion of their products

The Bank has a lot of financing schemes but there is very little advertisement of these schemes. So Bank should increase its advertisement.

All the Bank Branches should be getting online to provide the quality and speedy services to the customers and also remain competitive in the market.

UBL must provide the computers to all important employees to increase the peace of work.

The branch infrastructure should be up to date. UBL needs to create good relations with industrial

cities.

Thank You