A complete presentation on United Bank ltd. pakistan HCC Punjab university lahore. subject: Banking Law and practices in Pakistan

2.  3rdrd largest Commercial Bank of Pakistan
 UBL assets of over 620 billion
 It has 1257 branches in Pakistan
 17 branches overseas
 It has 400 ATM machines

4. “To be a world class
bank dedicated to
excellence, and to
surpass the highest
expectations of our
customers and all other
stakeholders.”

5. • Optimize people, processes
and technology to deliver
the best possible financial
solutions to the customers;
• Become the most sought
after investment.

6. • Agha Hassan Abidi founded the bank in 1959
• Registered on July 24, 1959. started the operations on
November 7th , 1959
• continued its operations as private banking company
until 31st December 1973
• The bank was working as nationalized bank when the
government decided to privatize some banks in 1992.

7.  Board of Directors
 Presidents
 Vice Presidents
 Regional Chief
 District Managers
 Managers
 Operational Managers
 Officers
 Clerical Staff

8.  Agha Hassan Abidi:
 He started his career with Habib Bank before
independence.
 He founded the United Bank ltd. In 1959
 He founded the BCCI
 He founded the Infaq foundation (charitable
organization) in UK , India , Bangladesh , Zimbabwe,
Pakistan.

9. Sheikh Nahayan Mubarak Al NahayanSheikh Nahayan Mubarak Al Nahayan
Chairman:Chairman:
Deputy Chairman:Deputy Chairman:
President & CEO:President & CEO:
Sir Mohammed Anwar PervezSir Mohammed Anwar Pervez
Mr. Atif R. BokhariMr. Atif R. Bokhari
 He heads the United Arab Emirates, ministry of Culture,
Youth & Social development prior to march 17, 2013.
 He headed the ministry of education science & research.
 He is the Chairman of WARID telecom.
 Hilal-e- Pakistan 2005
 He started his career in 1985 with Bank of America. He
was appointed head of corporate & investment
banking in Habib Bank in 2000.He join the UBL in
2004.

10.  In 2002 govt. of Pakistan sold it to Abu Dhabi group and Best
Way group having 25.50% of its shares each
 In 2002 it merged its operations in UK with those
belonging to National Bank of Pakistan to form
United National Bank Limited

11. • Negative Equity
• Heavy and continuing operating losses due to:
• Overstaffing, 21,500 employees
• Over branching, 1,701 branches
• NPLs (Non performing loans), 60% of total loans
• A lack of systems and controls across the board.
• Demoralized staff, declining deposits and market
share.

12.  changed 33 key positions
 downsized the staff from 21,500 to 8,525
 reduced the number of branches from
1,701 to 1,257
 arrested the NPL’s and blocked 80,000
deposits
Market share quickly increase from 7% to 10%

13. His Highness Shaikh Nahayan Mabarak Al Nahayan Chairman
Sir Mohammed Anwar Pervez, OBE, HPK Deputy Chairman
Mr. Atif R. Bokhari President & CEO
Mr. Omar Ziad Jaafar Al Askari Director
Mr. Zameer Mohammed Choudrey Director
Mr. Seerat Asghar Director
Mr. Muhammad Sami Saeed Director
Mr. Amin Uddin Director
Mr. Arshad Ahmad Mir Director
Mr. Aqeel Ahmed Nasir SEVP/Company
Secretary & Chief
Legal Counsel
Mr. Raymond Kotwal Chief Financial
Officer

14. • UBL Accounts
• UBL Ameen
• UBL Omni
• UBL Humrah
• Agriculture
• Cards & Loans

15. • UBL Business partner _Current Account
• Rupees Transactional Account (RTA)
• UBL Uniflex
• UBL Unisaver
• Certificate of Deposits
• Foreign Currency Saving
• Foreign Currency Term Deposit Receipts
• UBL Basic Banking Account
• UBL First minor Saving Account
• UBL Business Partner Plus

17.  UBL Ameen has its presence in all major cities of
Pakistan including Karachi, Lahore, Faisalabad, Sialkot
and Peshawar through 5 stand alone branches
 UBL Ameen has also more than 20 Islamic banking
windows in the existing UBL branches

18.  Ameen Current Account
Based on QARZ
Funds received, to be repaid on the demand/notice of the depositor
 Ameen Investment Accounts
Based on Mudarabah
A partnership where one partner provides capital (called Rabb-ul-maal) and another
contributes efforts (called Mudarib)
 Ameen Saving Account
Investment accounts that have freedom of withdrawal and deposit in which
profit can be received upon periodically
 Ameen Certificate of Islamic Investment
Term investment in which higher amount of profit can be received upon
maturity /periodically

19.  First cheque book free
 No Minimum balance
 Withdrawal on demand at anytime
 PKR 100 Million and above 24 hours notice (working days)
 PKR 200 Million and above 48 hours notice (working days)
 Collection and clearance of cheques
 No hidden charges

21. • UBL Omni now brings a host of banking
services to your nearest "Dukaan".
• UBL Omni Dukaan’s are located in more than
580 cities and towns across Pakistan.
• This is a major milestone in the evolution of
banking.

22. 1. Account Opening
2. Cash Deposit
3. Cash Withdrawal
4. Utility Bill Payments

23. • UBL Hamrah has been designed for the convenience and
security .
• It is the Traveller cheque for the safest and ideal way of
carrying cash when travelling anywhere in the Pakistan
• Denomination of Rs. 10,000 and Rs. 5,000.
• It is accepted more than 2000 places such as hotels, shops,
jewllers, etc
• Salient Features:
• Absolutely Free- No Bank commission , No Excise Duty,
• Available to all: Holding an account with UBL not mandatory
for availing this facility
• Transferable and Encashable:

24. •
Farm Loans
• Production Loan Financing is available for Major and Minor crops across Pakistan.
• (Revolving Credit Scheme)
– Minimum Amount PKR 30,000
• (Demand Finance Production)
– Minimum Amount PKR 30,000
• Land Development, Equipments and Machinery Financing for
Land Improvement, Water course improvement,
• Tube wells, Lift pumps, Deep turbine pumps, Cotton pickers, Godown, Cold Storage,
Harvester, Thresher, etc
– Minimum Amount PKR 30,000
• Tractor & Vehicle Finance To purchase Tractors, Delivery Vans, Mini
Trucks, Motor Cycle
• and other vehicles used for marketing Agri Products
– Minimum Amount PKR 100,000

25. • 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. Loan Minimum Amount PKR 50,000
• Poultry Financing
• 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.
• Minimum Amount PKR 50,000
• Fisheries Financing
• Fish seed, Fish feed, Construction of pond, Curing and Dying by
fishermen, etc.

26. • UBL Credit Card - Chip Credit Card
• UBL Wiz – Prepaid Visa Debit Card
• UBL Wallet – Visa ATM Debit Card
• UBL Address – Home Loan Facility
• UBL Business line – Business Financing Loan
• UBL Cash Line – Running Finance Facility
• UBL Drive – Auto Loan
• UBL Agricultural
• UBL Small Business – SME Loan

28. Sept 2011 Sept 2010 VAR %
Net Interest Income 33.17 28.52 +16%
Non Interest Income 13.01 11.07 +18%
Operating Revenue 46.18 39.59 +17%
Operating Expense (17.80) (16.68) -7%
Pre-Provision Oper. Profit 28.38 22.91 +24%
Provision Exp./Other writeoffs (13.52) (8.22) -64%
WWF / SBP Penalty (0.47) (0.63) +26%
Profit Before Tax 16.80 12.90 30.23%
Profit After Tax 11.0 8.10 36%

29. Sept 2011 Sept 2010 Ver. %
Profit Before Tax 16.80 Billion 12.90 Billion 30.23%
Profit After Tax 11.0 Billion 8.10 Billion 36%

30. Increased: 4.01%

31. Increased: 3.50%

32. Dec, 2010
68,415,056
Sep, 2011
74,362,260
Increased: 8.69%

33. Sep 2011 Sep 2010
EPS (Rs/share-annual.) 8.95 6.58
Price* - (Rs /share) 52.90 48.70
No of shares 1,113 Millions 1,113 Millions

34. Long Term Rating AA+
Short Term Rating A-1+
TFC Rating AA

35. Strengths
Weaknesses
Opportunities
Threats

36.  Ownership of Strong Group
 Huge Deposits
 Advances on Sound Basis
 Infrastructure
 Brands
 Fast Service
 Good Credit Rating

37. Centralization
Ineffective Personnel Policies
Low Motivation Level
Reactive Approach
Recovery
Land Marks Across Pakistan

38. Mobile Banking
International Expansion
Trade Shows
Liberalization
Socio Culture
Islamic Banking

39. Governmental Policies
Aggressive Competition
International Financial Slumps
Customer Behavior
Movement of trained staff to other banks
Strong competitors
Strict SBP policies
Increasing ratio of fraud

41. PESTLE analysis answers 6 key questions:
Political - What are the political factors that are likely to affect the business?
Economic - What are the economic factors that will affect the business?
Sociological - What cultural aspects likely to affect the business?
Technological - What technological changes that may affect the business?
Legal - What current and impending legislation that will affect the business?
Environmental- What are the environmental considerations that may affect
the business?

42.  Poor government policies.
 Political Instability
 Most of the banks have to finance the loan
under Political pressure
 Non Payment of loan by the Political Leaders.

43.  Consumer income
 Saving rates
 Consumption patrons
 Rates of interest
 Budget deficit
 Exchange rates
 Cost of living
 Inflation

44. Declining work ethics.
 Religious beliefs.
Non availability of the knowledge of the product of
the Bank.
With Holding Tax keep away the people from
Banking transaction.

45. Investment for improving Technology & Staff skills in IT
UBL purchase new System for interpretation of quantitative and
qualitative data to make financial decision.
UBL is also upgrading its existing in-house developed branch
banking software with Core Banking System (CBS).
Halted Growth of Communication Infrastructure

46. LEGAL
.
- Current legislation
- Future legislation
- International legislation
- Regulatory bodies and processes
- Employment law
- Consumer protection
- Health and safety regulations
- Money laundering regulations
- Tax regulations
- Competitive regulations
- Industry-specific regulations

47. ENVIRONMENTAL
- Environmental regulations
- Ecological regulations
- Sustainability
- Impact of adverse weather

48. UBL should make a good support to Islamic Banking.
 UBL should open its branches especially in the country side.
UBL should update its website daily.
Improve internal control system

49. To Be a World-Class Bank where you come First .
It is the “You First” culture we are promoting at UBL to
truly become a world-class bank which takes care of its
customers and provides them with world-class services &
products. At UBL, we value our people as our greatest asset
and it is this philosophy that forms the basis of our focused,
committed and long term investment in the people that form
this great institution. Our bank will be the best bank in future
with your cooperation.