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Internship Report on Union Bank of Pakistan
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Acknowledgement
I am very thankful to Almighty Allah the most merciful and beneficent who makes me able to complete my internship successfully.
I am also grateful to the department of administrative Sciences who gave us an opportunity of internship to enhance our capabilities. This internship programmed is very much helpful for me because, I have learnt a lot by applying theoretical knowledge in practical field. I would also show my gratitude to the Chairman of Department of Administrative Sciences Dr. Naseer Ahmed.
I am grateful to my internship supervisor Ms. Mehnaz Khan who guides me a lot in the completion of my internship.
I am also grateful to all the employees of Union Bank who guide me during the course of internship. The behavior of all the department supervisors is very good to me because they gave me a lot of time to guide me the mechanism of all departments in which I worked
Table Of Contents
Page #
Acknowledgements 1
List of Tables 4
List of Acronyms 5
Executive Summary 6
Section 1
INTRODUCTION 8
Introduction of organization 9
Sponsor’s Profile 10
New IT platform - More Services, Better Reach 11
New Prospect – Service Beyond The Horizons 12
Union Bank International 13
Mission Statement 14
Core Value 15
Bank’s Objectives 15
Branches From Beginning 16
Branch Network 17
Organizational Chart 18
Board Of Director’s Profile 19
Financial Records 21
Normal operations of the bank 23
Section 2
REVIEW 24
Account Opening Department 25
Online Inter Branch Transactions 30
Accounts Department 33
Mortgage Department 36
Home loans 37Business Power 41
Autos Department 46
Verification Department 49
Section 3
SWOT Analysis 51
Strength 52
Weaknesses 53
Opportunity 54
Threats 55
Section 4
RECOMMENDATION 56
Recommendation 57
List of Person Interviewed 59
Reference 60
List Of Tables
1. Branches From Beginning
2. Branch Network
3. Assets Over The Years
4. Profit After Tax
5. Earnings per Share
LIST OF CHARTS
1. Organizational Chart
List of Acronyms
UB Union Bank
CEO Chief Executive Officer
SME Small Medium Enterprises
B.D Board of Directors
V.C. Vice Chairman
Pre. Group CEO President And Group Of Chief Executive Officer
Group Crd. & RM Head Credit And Risk Management
GROUP HRDGroup Head Human Resource Development
Cou. H. ULCountry Head Union Leasing
Group.H.R.BGroup Head Retail Banking
Group.H. Con.B Group Head Consumer Banking
H.I. Audit Head Of Internal Audit
Cou. H. SME Country Head Small And Medium Enterprises
Com. Sec. C.F.O Company Sectary And Chief Financial Officer
Dir.C.S& Q. Director Customer Services And Quality
H.I.T. Op Head Of Information Technology And Operation
C. Cor. I.B. Head Of Corporate And Institutional Banking
AMEX Card American Express Card
PO Pay Order
DD Demand Draft
ATM Auto Teller Machine
PLS Profit And Loss Saving A/C
LTF Loan Transfer Facility
RF Running Finance
RM Relationship Manager
RO Relationship Officer
TL Transfer Letter
DAF Delivery Acceptance Form
PO Purchase Order
LOA Letter Of Acceptance
NAS New Accountability System
VA Verification
Executive summary
Department of Administrative Sciences was established in 1975 and offered the master degree in both principles Business and Public Administration. DAS is one of the most important department of University and producing bright students since it was established DAS offers internship as a compulsory credit course and the purpose of internship is implement the theoretical knowledge in practical field the minimam requirement of internship is six to eight weeks in any renown organization.
My field of interest in MBA is Finance so I chose financial institution for internship. I have done my internship in Union Bank Consumer Section. At the very first day I reported to BM of Union Bank Sitiana Road Branch Faisalabad. The time duration of in each department was approximately a week.
The first department in which I worked was Mortgages Department. This department was managed by RM Mr. Muhammad Ashfaq. I learned a lot under his supervision, and the process that how credit facilities were given to the customer during the following week. Next week I worked in a same department but the product was different i.e Home Loan. Normally this section is treated as a seprate department but here all the activities is done under the same RM.
I also worked in Autos, Accounts, Account Opening and VA Departments. During my internship in Autos Departments I worked under the supervision of Mr. M Khalid RM of that Department. I learned about how customer are facilitated with financing and leasing facilities.
Then in a Accounts department I learned about how did all the Accounts of branch operate. I learned about the End Of Day (EOD) reports entries to GL, reporting process and balancing process. I this department I worked under the supervision of Accounts Officer Mr. Atif. In Account Opening Department I worked with Mr. Imran who told me Account Opening Process and types of Accounts.
The last department in which I worked was VA Department (Verification) under the supervision of VA Officer Mr. M Adrees. This department has lot of importance because all the cases of BP, Home Loan, AMEX Card and Autos has been verified by them.
During my intenship I found many good and bad thing in this organization. Union Bank has Large variety of products due to which they are progressing over the year. Due to innovative products like Business Power, Ready Cash, AMEX Card, My Home. They have got a lot of market share and growing over the year. With respect to Faisalabad Union Bank is one of the leading Bank and working marvelously. Union Bank has high markup rates in BP and My Home which is a draw back for them. But due to least documentation and easy processing for customers, so they are attracted towards Union Bank. Union Bank must concentrates on promotion of their products
INTRODUCTION OF THE ORGANIZATION1
Established in 1991 and backed by a major Middle Eastern Group, Union Bank today is the preferred choice of thousands of satisfied customers throughout Pakistan. With 42 branches in 17 cities and a correspondent banking network of 500 banks in 87 countries, Union Bank is rapidly gaining ground in the global financial market.
The management at Union Bank comprises of seasoned professionals in the fields of banking and finance thereby encouraging a culture of innovation, and total customer satisfaction. Union Bank's vision is to provide its clients with complete banking solutions.
Realizing this vision, in year 2000, Union Bank acquired Bank of America's operation in Pakistan. Keeping on the same strategic run, in July 2001, Union Bank signed an Independent Operator agreement for American Express Cards in Pakistan. As a result of this arrangement, Union Bank now issues, operates and markets American Express cards in Pakistan. The Bank is also in the business of acquiring merchants accepting VISA, MasterCard, American Express and JCB cards. In anther milestone agreement signed in September 2002, Union Bank acquired the local operations of Emirates Bank International making it one of the largest private sectors banking network in Pakistan.
With major investments in international brand acquisitions, branch network and information technology including a state-of-the-art customer contact center, Union Bank is well on its way to offer its customers innovative financial products. This would result in an unmatched level of service quality offered by the Bank in the years to come.
SPONSOR'S PROFILE
Dr. Abdullah Mohammad Abdullah Basodan is a member of the Supreme Economic Council of the Kingdom of Saudi Arabia, with considerable experience in business. Apart from his own substantial and varied business interests, he has in the past been at the helm of well-established business groups of Saudi Arabia. He was a director and member of the General Management Committee (the Supreme Body) of the National Commercial Bank of Saudi Arabia (NCB) and as such is well versed with strategic management and control of financial institutions dealing with public deposits.
He was also the founding President and CEO of Nimir Petroleum Company, the largest privately owned oil company from Saudi Arabia. In addition he was, until 1999, the Chairman of Al-Murjan Group of Companies, a conglomerate he founded in the mid 1990s. In addition to financial services (notably banking) Dr. Basodan's present business interests include oil and goes projects, mining, specialty chemicals, information technology and the financial media.
He is the Vice Chairman of Global Finance, a prestigious specialized journal published from New York.Dr. Basodan is also a founding board member of the International Child Art Foundation, Washington D.C.
Dr. Basodan has been an advisor to the Minister of Petroleum and Mineral Resources, Government of Saudi Arabia. He has also taught Economics at the King Saud University, Riyadh, Saudi Arabia.He completed his Masters in Economics from University of Washington, USA, in 1980. In 1985 he completed his Ph.D. in Economics from the same university.Dr. Basodan's family are the pioneers in the field of education in Saudi Arabia, an area to which Dr. Basodan remains devoted to this day.
NEW IT PLATFORM - MORE SERVICES, BETTER REACH:
Union Bank's vision for growth goes beyond brick and mortar. We believe that the new consumer trends demand new types of banking services, delivered in totally new ways and through new resources. This makes technology one of the key success factors in today's world of banking. During the year 2002 & 03, Union Bank invested generously towards establishing a state-of-the-art technology platform, which I feel proud to say, is unmatched in the banking sector in Pakistan. Our technology infrastructure involves three critical areas, i.e. branch banking system, cards and consumer assets systems, and the call center. Union Bank has recently shifted to a modern and comprehensive branch banking system Equation DBA. This system has been licensed from Misys, the largest banking software company in the world. This system can serve as a base for offering innovative service solutions to our branch banking, consumer, corporate and SME customers. Through Equation, Union Bank has converted all its major branches to an on-line real time platform, making it one of the largest on-line banking networks in Pakistan. On the cards side, your bank has also acquired a new IT platform capable of handling cards issuance and acquiring business. Our cards merchant acquiring business also employs state-of-the-art authorization hardware capable of accepting credit, debit and charge cards from four major card networks. You bank's 24-hour customer service center "Union Bank Online" is also in its final stages of implementation. This new call center is capable of data warehousing and can also be converted into a one-stop for our customers for their basic banking transactions. All these measures towards establishing a technology oriented financial institution are taken with an objective or creating a hub of customer service and product innovation, which would result in fulfillment of our promise and mission of growth and prosperity.
NEW PROSPECTS - SERVICE BEYOND HORIZONS:
Looking forward to the future prospects, Union Bank has done a commendable job in cleaning up the balance sheet in the last three years. This is reflected by an aggregate provisioning of Rs.420.534 million in the period of 2000 - 01, including Rs.197.569 million in the year 2002 alone. This would result in a much healthier balance sheet in the future years, which would be conductive for venturing into new projects and products, as per our plans. Your bank has shown phenomenal growth in net mark-up/interest income, which has increased by 89% while total revenues grew
by a staggering 55%. Your bank has also made significant progress in increasing its deposit base, from Rs.19 billion in 1999 to Rs.20.721 billion in the year 2001, an increase of 21% in a single year.Also due to restructuring of our liability products, we have managed to stabilize our deposit base to quite an extent, hence reducing the risk of sudden fluctuations. Our expenses have registered a large increase of 46% due to heavy investments in acquisition of Amex Cards. IT, new branches, new products and human resources to deliver all of the above. We are confident that the financial benefits of these investments will commence from 2002 onwards.
Union bank international2
Union Bank's vision goes beyond local operation. The bank's aim is to become a prominent Pakistani bank with substantial international presence. With a wide range of products & services and management expertise in all functional areas of banking, Union Bank finds itself best positioned to embark on international operations.
In order to establish an international network Union Bank has been evaluating several emerging economies in Europe, Southern Africa and South Asia. The criteria for the selection of the country includes the level of economic activity, the demand for consumer products (Union Bank's core competency), and the trade and economic relations with Pakistan.
Union Bank selected Sri Lanka as the first venue for commencing its international business. The historically warm relationship between both the two countries provides Union Bank a congenial platform to start its offshore operations. Sri Lanka is one of the fastest growing economy in the region and the bilateral trade agreement between Pakistan and Sri Lanka will not only help to boost trade but will further strengthen the relationship between the two countries. With economic and cultural similarities between the two countries, Union Bank believes that it will be able to leverage its success in Pakistan to Sri Lanka as well.
Address:
245-Dharmapala Mawatha,
Post Box 304 Colombo- 7,
Srilanka.
Tel:94-1-679000-5
Mission Statement3
“To be the premiere bank, responsive to the needs of our target market customers, recognized for consistently superior service quality and innovative products, thereby delivering superior value to our stakeholders.”
Core Values: 4
Humility:
Being conscious of one's self worth but modest with a sense of style and quality
and respectful towards colleagues regardless of rank or position.
Integrity:
Uncompromising honesty to oneself, the customer and the company with mutual
relationships based on trust and the rejection of intrigues.
Meritocracy:
Compensation and career progression based on performance against set goals and
objectives - without bias to personal relationships, Gender, religion and
ethnicity.
Innovation:
Create and implement simple yet creative, new and dynamic future oriented
learning's leading to out of the box solutions to the needs of
the customer and improve productivity
Teamwork:
The ability and willingness to share equally the responsibility of failure and
the glory of achievement
BANK’S OBJECTIVES:
Each bank is established with some objectives and so does the Union Bank. This bank was established around nine years ago with following missions and objectives.
·
To operate current and saving accounts, term deposits and trade finance facilities.·
To actively participate in the money and foreign exchange markets.·
To play a leading role to the private sector in the economic development of the country.·
To broaden the scope of the financial sector through deregulation and disinter medication.·
To provide customer and service oriented products for savings and mobilization, financing and general financial services.·
To complement the activities of other government and private banking and financial institutions.·
To operate at the leading edge of modern banking and customer based services.·
To employ a staff of highest caliber and potential.The banks long-term objectives will be characterized by the highest quality of services for its customers, welfare of its staff, maximization of dividend income and capital growth for its shareholders.
Branches From Beginning:
Table 1
|
Years |
Branches |
|
1992 |
10 |
|
1993 |
10 |
|
1994 |
19 |
|
1995 |
25 |
|
1996 |
25 |
|
1997 |
25 |
|
1998 |
25 |
|
1999 |
25 |
|
2000 |
27 |
|
2001 |
27 |
|
2002 2003 |
32 42 |
Branch Network:
Table 2
| Faisalabad 02 |
|
| Gujrat 01 | Peshawar 02 |
| Gujranwala 01 | Quetta 01 |
| Hyderabad 01 | Raiwind 01 |
| Islamabad 04 | Rawalpindi 01 |
| Jhelum 01 | Sahiwal 01 |
| Karachi 10 | Sargodha 01 |
| Lahore 08 | Sialkot 02 |
| Mardan 01 | Swat 01 |
| Mirpur (A. K.) 01 |
|
ORGANIZATIONAL STRUCTURE OF UNION BANK LIMITED
Board of directors
Chairman
Vice chairman
President & group CEO
Secretary
G.H. Crd & RM
Cou.H.SME
GH.HRD
CO.SEC.CFO
CH.UL
Dir.C.S&Q
G.HR.B
H.IT&Operation
G.H.CON.Bank
H.C.I.Bank
H.I.Audit
Chart 1
Board Of Director’s Profile:
Mr. Moeen Afzal
Director & Chairman
Mr.Aurangzeb Afridi
Director Quality & Remote Banking
Mr. Shaukat Tarin
President & Group CEO
Mr. Azmat Tarin
Director Retail Bank
Mr. Aziz Rajkotwala
Chief Operating Officer – Pakistan
Mr. Bahauddin Khan
Director Operations & Technology
Mr. Munir Kamal
Chief Operating Officer International
Mr. Shamsul Hasan
Head of Corporate and Institutional Banking
Mr Asif Sana
Director, International & Business Development
Mr. Umer Fareed
Director Marketing
Mr. Akbar Ali Chughtai
Group Head Credit and Risk Management
Mr. Waqar A. Khan
Head of Internal Audit
Mr. Asir Manzur
Director, Human Resource
Mr. Shahzad Enver Murad
Chief Executive, Union Leasing Ltd.
(A subsidiary of Union Bank Ltd)
Mr. Syed Liaquat Ali
Co. Secretary & Chief Financial Officer
Secretary
Syed Liaquat Ali
Audit Commitee of the Board
Mr. Qazi Mazharul Haque Chairman
Mr. Mueen Afzal Member
Mr. Muneer Kamal Member
Mr. Munnawar Hamid OBE Member
Auditors
M/S Taseer Hadi Khalid & Co.
Chartered Accountants
Legal Advisors
M/s Cornelius, Lane & Mufti Advocates & Solicitors
Financial Records: 5
Assets over the years:
Table 3
|
Years |
Assets |
|
1992 |
8,832,740,800 |
|
1993 |
12,691,418,320 |
|
1994 |
16,184,896,644 |
|
1995 |
14,962,035,268 |
|
1996 |
17,447,441,004 |
|
1997 |
15,170,177,000 |
|
1998 |
14,768,484,000 |
|
1999 |
14,404,132,000 |
|
2000 |
27,089,887,000 |
|
2001 2002 |
30,128,129,000 55,848,789,000 |
Profit After Tax:
Table 4
|
Years |
Profits |
|
1992 |
36,122,863 |
|
1993 |
123,560,922 |
|
1994 |
121,302,455 |
|
1995 |
129,276,394 |
|
1996 |
104,505,712 |
|
1997 |
95,485,000 |
|
1998 |
25,668,000 |
|
1999 |
14,587,000 |
|
2000 |
1,308,000 |
|
2001 2002 |
30,735,000 163,492,000 |
Earnings per Share:
Table 5
|
Years |
Profits |
|
1992 |
1.20 |
|
1993 |
2.74 |
|
1994 |
2.7 |
|
1995 |
1.62 |
|
1996 |
1.83 |
|
1997 |
1.68 |
|
1998 |
0.45 |
|
1999 |
2.56 |
|
2000 |
0.02 |
|
2001 2002 |
0.43 1.34 |
NORMAL OPERATIONS OF THE BANK
TIMING:
Union Bank follows the rules stated by The State Bank of Pakistan.
Bank Timings 9 a.m. to 5 p.m.
Public Dealing 9 a.m. to 1:35 p.m.
Rest of the time is allocated for working.
In practice they serve their customers even after the set timings as other banks do.
WORKING DAYS:
Bank working days are six, from Monday to Saturday. Saturdays are half days. On Fridays customer are dealt with up to 12:00 noon, while workers get a break of `2' hours for Jum'a prayer.
WORKING METHODS:
Union Bank follows computerized system they do follow manual system but to a very small extent. Their own company "Saigol Computers" prepares special software, keeping in view their bank requirements. The name of the software is "Union Bank System".
ACCOUNT OPENING DEPARTMENT:
The first department, which was assigned to me "accounts opening department". This department is to a bank as a preface to a book. It develops relationship among the bank and its customer.
Following tasks are performed in this department.
OPENING OF AN ACCOUNT:
For opening an account, first of all an account opening form is required. This form is an entry to the banking system through ones deposits in the form of cheques and cash.
Requirements
Two most important requirements for opening an account are:
1. Original and photocopy of ID card.
2. Introduction
A person can be introduced by staff member, by other account holder or by account holder of other bank.
TYPES OF ACCOUNTS
1. Saving
2. Current
Saving Account:
Such an account can be opened with a minimum of Rs.500 and the customer gets return of 12.5% on it.
Current Account:
This A/c can be opened with a minimum sum of Rs.10,000, while on such an account customer gets no return. Customer has to maintain at least Rs.10,000 in his/her account during six months, otherwise incidental charges of Rs.200 are paid by the customer as a penalty.
OPENING AN ACCOUNT WITH FOREIGN CURRENCY:
In order to open an account with foreign currency, if the customer is a resident of the country, the copy of his ID Card is required.
In case the client (s) is non-resident of the country then the client has to submit the photocopy of his/her passport to open his account with foreign currency.
OPENING AN ACCOUNT WITH LOCAL CURRENCY:
An account can be opened in the name of depositor(s) in different capacities. Depending upon the capacity of the customer, these are different types of accounts currencies of account in which it is opened.
1. Pak Rupees
2. US $
3. Sterling
4. DM
5. Japanese Yen
The different categories of account available are:
1. Individual Account
2. Joint Account
3. PLS Savings, PLS Notice and PLS Term Deposits
4. Foreign Currency Deposit
5. Third Party Mandate
6. Limited Company Account
7. Partnership Account
Their detail is as follows
INDIVIDUAL ACCOUNT:
This A/c can be opened for a single customer or for sole proprietors. Sole proprietor writers an application on his/her letter-head and gives information whether the company is registered or unregistered.
JOINT ACCOUNT:
This A/c is opened in the names of two or three or more customers. Requirement is ID Card photocopy. Partners are jointly or severally responsible for the repayment of any finance with return, profit or mark-up.
THIRD PARTY MANDATE:
This is an authorization from the client to make all cheques debit, drafts or orders, all bills accepted and promissory notes made on his behalf by the person being made mandate. They may be jointly or severally or severally responsible for transaction with branch.
LIMITED COMPANY ACCOUNT:
This account is opened in the name of limited company; there are two types of limited companies:
1. Private Limited Company
2. Public Limited Company
Documents required for Private limited company are
1. Certificate of incorporation
2. Memorandum & Article of Association
3. Resolution
4. List of directors
5. Signature card
Document required for Public Limited Company:
1. Certificate of Commencement of business
2. List of directors
3. Copy of board resolution
4. Signature card
PARTNERSHIP A/C:
This account can be opened in the name of two or more partners. Some of them are general partners and some are sleeping partners and others are managing partners. Responsibility of managing partners is to manage the business. They are, at times, authorized to sign the cheques for this company submits "no objection certificate". Requirements for this account are:
1. Partnership deed copy
2. Registration certificate copy
3. Signature card
HOW TO PREPARE A CHEQUE BOOK:
The requisition slip along with the account opening form is used to issue the chequebook. On each and every leaf of the chequebook account number of the customer is stamped and the number of leaves in the cheque book are written on the requisition slip as a record for the bank.
In case the requisition book along with the account opening form has been issued then the new chequebook will be issued when the requisition slip from the finished chequebook by the customer, is submitted with the bank.
CLOSING OF AN ACCOUNT:
An account can be closed as per customer's request. Bank charges Rs.150 for closing an account. Signatures are verified from the application by cash department and SS card is attached to the application unused chequebook is returned which is disposed off.
·
Account opening form of that account is crossed.·
Account is also closed if it contains negotiable amount and no transaction is done for a long period of time.
ONLINE INTER BRANCH TRANSACTIONS
A flexible current account that gives you the freedom to transact wherever your business takes you. Business Account offers you the most secure way of transferring your funds without the hassles of carrying Cash or Travelers Cheques.
·
Instant Cash withdrawals and depositsOur online real time technology allows you to deposit and withdraw funds from any of our branches across Pakistan.
·
Get Pay Orders and Demand Drafts anywhereThrough Business Account you can now get your PO and DD made at any Union Bank Branch across Pakistan.
·
Faster Cheque ClearingThrough our online, real time technology, your cheques are processed more efficiently and funds are credited to your Business Account faster than over before.
·
Immediate access to your account informationNo matter where you are, you can get your Account Statement or even a Balance Certificate from any of our 32 branches across Pakistan.
24 HOUR ACCESS TO PHONE BANKING:
Business Account allows you to initiate inquiries and conduct transactions at your convenience, 24 hours a day. No need to wait. No hassle.Simply call and our customer contact center will respond to your banking needs.
·
Check your account balance and receive statement·
Check transaction history of your account·
Obtain status of cheques·
Order issuance of cheque books·
Transfer funds·
Instruct issuance of pay orders/demand drafts·
And a host of other banking services.All these services are just a call away, 24 hours a day, 7 days a week, 365 days a year!
ACCOUNTS DEPARTMENT:
Accounts department has following tasks to do
1. Reporting
2. Checking
3. Balancing
4. Budget Monitoring
5. Calculating Depreciation
REPORTIN:
A daily statement of affairs is prepared in which branch position is mentioned. This statement includes:
1. Deposits
2. Advances
3. Business figures
4. Cash on hand
In total, this statement gives information about total assets and total liabilities of the bank. Report is prepared by accounts officer and after being checked by the chief manager, it is sent to central office. It is prepared on daily, weekly and six months basis.
CHECKING:
At the end of the day a computer, on which all ledger accounts are balanced, prepares activity report. All transactions of the day go to its respective general head numbers.
Next day vouchers of different transactions are sorted out according to their general head numbers. The account officer compares. "Activity Report" of the previous day with the vouchers. No voucher should be missing. All vouchers should be according to the transactions in the report.
The most important function of this department is to maintain general ledger.
BALANCING:
Balancing is done at the end of the month. Accounts, such as, suspense account and sundry creditors should be nil. If any amount is outstanding, then explanation for it has to beguine, and in case there is no explanation, penalty has to be given.
BUDGET MONITORING:
Budget is prepared on the basis of previous year performance. Function of accounts department is to monitor whether business is going on according to the budget or not.
CALCULATING DEPRECIATION:
Depreciation is calculated in accounts department. Depreciation is done by straight-line method.
Rates:
Building 5%
Furniture & fixture 10%
Vehicle 20%
Electronic Equipment 20%
MORTGAGE DEPARTMENT
At an unbelievably low rate of interest and with the most flexible terms of payment, "My Home" is yet another product from Union Bank, which turns your dreams into reality and gives you a secure future, today. Why pay rent when you can use your hard-earned money to invest in your own home?
Product features: 6
Flexibility:
Build, buy or renovate, it is all up to you
Easy Payback:
With tailor made installments and the facility to make partial repayments twice a year, owning a home was never this easy
Tenor:
Stretch your installments over a leisurely 20 years, or pay back in just a year, its all up to you.
Mark Up:
With an unbelievably low mark-up rate of 11% you can now spend more on the little details that make a house your home.
Quick Processing:
Simply fill out the application form, sit back and relax while we make your dreams come true in the shortest time possible i.e. aprox.20 to 25 days.
High Loan Amount:
Union bank offers you highest loan facility that you can get loan of 300,000 to 10MM based on your eligibility; "My Home" maximizes your buying power.
Loan Transfer Facility (LTF):
You can use the "loan transfer facility" to transfer your existing home loan of any other bank or financial institution to Union Bank's "My Home" and avail its lowest mark-up, flexibility and other amazing features.
Eligibility Criteria:
If you are a salaried, self employed professional or a businessman residing in Pakistan, between 25-65 years of age and meeting the minimum monthly income requirement, you can qualify for "My Home" that puts your own home within your reach.
Application/Documentation Procedure:
All you have to do is to fill in the "My Home" application form and provide the following documents:
Personal Documents
·
Copy of NIC.·
2 recent photographs.·
Copy of any paid utility bill (not more than 3 months old) received at your currentBanking Relationship Documents
·
Last 1 year bank statement of your business.·
Bank certificate from branch manager.Occupation Related documents
Salaried Individuals
·
Permanent job in current organization·
Evidence of being employed for 6 month.Self-Employed Professional & businessmen
·
Evidence of work for 3 years of self employed / business.·
Partnership deed·
Tax returns of last 3 years.Processing of Home Loan cases:
Mortgage department launch recently a new product by the name of “home loan” in Faislabad. This is product is lead by the same RM of mortgage department same processor but with different RO.
“Home Loan” is credit facility for those who worked to build or buy their own home. The processing of home loan’s cases and business power’s cases almost same except some documents. RO provide all the documents required to the processor (which are mentioned above). Then the processor made the preliminary stage and send to the verification department, appraisal and legal (lawyer).
After preliminary stage processor gets the feedback from all three departments which are VA, Legal and Appraisal Departments. Then he will send the stage 1 to the Karachi for the approval of the loan. Stage I sends to Karachi for the approval. After the OK report of Karachi, they issue the LOA ( letter of acceptance) in which the amount of loan is mentioned.
Than an account is opened for transaction by the name of applicant. In stage 2 lawyer of the bank prepare the legal documents to mortgage the property of applicant to bank. After completing legal requirement he sent to Karachi again for approval. After acceptance of stage 2 the loan amount is disperse in the applicant’s account.
In the dynamic business environment of today it is of prime importance for a business that there are ample cash resources available at all times. This could be to seize a window of opportunity or to counter working capital cash crunch
.Business Power is a 'Running Finance Facility' (RF) offered against residential property to businessmen and self-employed professionals. The product provides a flexible source of funds to businesspersons to meet day-to-day working capital requirements.
Something about Business Power:
·
Business Power is a 'running finance facility'.·
Business Power can extend you a credit line from Rs. 1 million to Rs. 20 million.·
Business Power is a stand-alone; one of its kind products where the only collateral required is a residential property.·
Pay only when you want to. You only need to pay the Mark-up at the month end.·
You can payback the principal amount utilized whenever it suits you.Features of Business Power: 7
Financing Limite:
The credit line offered ranges from Rs. 1 million to Rs. 20 million depending on the market value of the property. Residential property is assessed on the market value and up to a maximum of 60% of its value can be released as a financing line.
Pay As You Utilize:
Whatever the financing limit, you pay mark-up only on the amount drawn out of the credit line. To make it even more attractive, mark-up is calculated on a daily utilization basis.
Getting Rewards:
As your relationship flourishes with us and you are prompt in your monthly mark-up payments, we will reward you by decreasing your mark-up rate.
Quick Processing Time:
Now you don't have to wait for months to get your credit line approved. After we have received your completed documents, your application will be expeditiously processed.
Unlock Your Blocked Resource:
Through Business Power, the capital locked in your residential property turns into a productive source of funds for your business.
Capitalize on Business Opportunity:
Convert business opportunities into profitable ventures. Expand your business and maximize your profits.
Eligibility Criteria:
·
You can avail this powerful facility if you are:·
A resident Pakistani living in Karachi, Lahore, Islamabad, Rawalpindi,·
Peshawar, Gujranwala, Gujrat, Sialkot, Faisalabad & Multan.·
Between 25-55 years old.·
Running your present business for the last 3 years.·
Earning a net monthly income of at least Rs. 36,000.·
Willing to provide your own or co borrower’s residential property as a security.Documents Required:
All you have to do is fill in the Business Power application form and provide the following documents:
Personal Documents:
·
Copy of NIC.·
2 recent photographs.·
Copy of any paid utility bill (not more than 3 months old) received at your current residential address.Business Related Documents:
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Proprietorship or partnership deed or Memorandum and Articles of Association along with latest Form A.·
Copy of title documents or rent deed of your office/ business premises.·
Copy of any paid utility bill (not more than 3 months old) received at your office address.·
Last Tax Assessment Order.Banking Relationship Documents:
·
Last one year bank statement of your business or personal Account.·
Bank certificate in case of a proprietorship or a partnership concern.·
Copy of title documents of property you want to place with the bank as a security.·
Copy of last property tax payment receipt, if applicableHow does this process works?
Any one who runs the business he will definitely need some extra money apart from his own equity. Business power is running finance facility to the customer for working capital to run the business smoothly. The business power is product of mortgage department. The branch in which I work as a internee has a RM for mortgage and 4 RO’s and one processor to RM mortgage.
The first step in giving business power facility is that RO’s got some customer and than they check that he is completing their all the requirements. After that they fill the application for formally login the case. RO’s give all the relevant documents, which are required to the processor.
The second step in this process is the processor complete the preliminary stage of case, that are:
·
The copy of all documents required is send to verification department that is situated in main branch Faislabad.·
The copy of documents required for legal department is send to the lawyer of bank·
Third copy of all documents is send to appraisal department which is in LahoreAfter these Preliminary stages processor gets the follow up from all three departments. If all the required documents are complete than the OK report is shown in the status by all concerning departments. If any documents which is required for the case’s approval is short than discrepancy report is show on the status by the respective department. For this processor has to be answerable and he will have to complete all these documents for the approval of the case.
After the completion of preliminary stage processor send the stage I of case in which original application, photos of all borrowers, NIC copy of all borrowers, deposit voucher of 1000 are required. Stage I sends to Karachi for the approval. After the OK report of Karachi, they issue the LOA (letter of acceptance) in which the amount of loan is mentioned.
Than an account is opened for transaction by the name of applicant. In stage 2 lawyer of the bank prepare the legal documents to mortgage the property of applicant to bank. After completing legal requirement he sent to Karachi again for approval. After acceptance of stage 2 the loan amount is disperse in the applicant’s account. Then chequebook is issued to applicant. After the dispersion of amount applicant can use according to his own need. The especially benefit of this product is the interest is charge on the daily basis and on that amount which he use on particular day.
This is all about the processing of a case in business power.
UniCar (Stop Dreaming Start Driving)
End your pursuit for a Brand New car with UniCar. Now you could swiftly, easily and cost effectively buy your own car at your own terms. That is because Unicar delivers the best, faster than rest.
With the greatest flexibility, you can choose from anywhere between 1 - 5 years leasing / financing period, with and additional option for an extended 6 - 7 years lease / finance period
Features: 8
Low Down Payment:
With Down Payment as low as 20% - This means you can drive off with your brand new car and your money too. Down payment can be as low as 10% based on additional documents.
Unicar Features:
With a nationwide network of renowned car dealers throughout Pakistan, you can get in the driving seat of your brand new car in no time. All you need is:
·
A completely filled in Application form·
NIC Copy·
2 recent Photographs·
Salary slip with complete break up·
1 year Bank Statement
So Get Going:
So don't wait, you can be the proud owner of your brand new car, if you are:
·
A Pakistani national between the age of 21 - 65 years of age·
A salaried individual, a businessman or a self employed professional·
Continuously employed for at least 6 months (salaried) or self employed for at least a yearProcessing of uniCar:
Following steps are involved in processing of cases:
Preliminary Stage:
In preliminary stage processor complete the documents such as NIC, Photograph, Application, 5 years of business proof, (OR 1 year Bank Statement). And send to the concerning heads for approval.
Stage I:
After the approval of preliminary stage following documents Application, NIC, Photographs, Legal Documents, Deposit Slip (Down Payment), TL, Calculation Sheet, Monitoring Sheet, RM Memo, (Booking Indemnity form for booking cases) are gathered and send for approval.
Stage II:
In stage II Key of the car, DAF, PO, Insurance Cover Note is sending for approval.
Verification Department:
Verification department is an important one because all the case from mortgage, credit card, autos and verified by this department. I am also spend some time in this department for the verification of mortgage and autos cases.
Function of VA department
The officers in VA department have to check the documents forward by mortgage department and Autos department. Verification is of two type one is physical and other is telephonic verification.
Physical VA:
VA officer physically visit the sight and check the documents of property, business and applicant’s identity. The most important thing is that if there is no telephone in either in home or in office of the applicant the case will be discrepant.
Telephonic VA:
In Telephonic Verification officer verify the applicant name, address. If the informed provided to the VA officer is not valid than he will discrepant the case and send report to the concerning department.
After completing both verifications VA officer send case to NAS. They analyze the request and forward to VA LHR for the approval.
SWOT ANALYSIS
While interning at Union Bank I was able to conduct a SWOT analysis of the organization. I learnt a great deal about the banks Strengths, Weaknesses, opportunities available in the future and the threats that are ever present in today’s competitive Banking Industry. The analysis is as follows:
Strengths:
The major strengths of this organization are:
The policy makers of Union bank are the trendsetters in the Banking industry of Pakistan and have been providing the market with continuous innovation through products like Ready Cash and American Express cards. This is mainly due to the vast hands on experience that the policy makers of UB have had over the long life of this organization. As the bank has a considerable advantage in terms of experience in the Pakistani market, it is able to fore see the shifts in consumer demands and can therefore satisfy them in a better way.
The bank has at present also introduced the facility of Tele banking. With an entire department devoted to this task of answering any queries from customers through the telephone. Tele banking serves the purpose of satisfying questions about account balances, products offered, specific product features etc.
Another strength is given to Union Bank by the online networks that they have shifted to across the country. With this system they are now able to offer customers the facility of depositing or withdrawing through any check from any UB branch in other UB branches. The advantage here is not this but the fact that the account holders balance are immediately altered to incorporate every transaction, regardless of which, branch a check is presented to.
Another strength is the compatibility of Union Banks ATM card with ATM machines of various other banks. So even though they, at present do not have a large network of ATM outlets they are able to work with this through making the card operable through other bank ATM machines.
The culture of the organization is such that it promotes teamwork. This has resulted in a very healthy work environment that has in turn contributed to a strong commitment to work. This is the reason that all sales teams of this bank for various products such as Car Financing, Amex cards, Car Leasing etc. have been bringing in a large portion of the target market through their well-built network of leads and clients.
Some strength may have been overlooked but the major strengths of this bank have been given above.
Weaknesses:
Even though the bank is making continuous efforts towards minimizing its weaknesses. There are still some areas that have to be improved to be able to compete in this industry. The major weaknesses are as follows:
The major weakness that the Bank faces is that it is charging its customers a higher markup rate on various products. Even though UB has not achieved cost leadership, it has at the same time also not made great efforts at reaching this target. As a result, a large portion of the customer base, even though satisfied with the Bank, is refraining from choosing UB.
There is lack of promotion in this age of advertising and media. UB is not advertising on electronic media at all. This is once again resulting in a great loss of customer base that are pulled towards Askari, Citi and other such banks that are using this medium for advertising.
UB has restricted its customers by not providing the Semi Government and government sector along with the Police, Army and other ministries with a chance to avail its products. As it is the banks policy to not conduct business with such customers.
Even though UB has conquered the weakness of having a small ATM machine network by making there cards compatible with other machines. This small network still poses an area that is considered to be a weakness by UB customers and competitors alike.
The lack of proper infrastructure in small branches is also a major weakness. As these are the branches that a large portion of the customers is going to. In certain branches there is not even proper separation between departments or any cabins or cubicles to separate one department from another. This is a source of confusion for both the staff and the customers.
Being completely connected with all the branches there is still a shortage of systems to give to the slightly lower level of employees. Computers at present are only provided to the managers and the other employees are still doing their work on registers and files. This situation must be dealt with immediately to increase productivity, efficiency and competitiveness.
Opportunities:
At present the bank is faced with a large avenue of opportunities as it has proved by launching new products and exploring various options in the market. The major opportunities are:
As discussed earlier, UB has not explored the benefits of advertising through electronic media. Once it does so there will be a whole new World of customers heading their way.
Having the innovator image has been working well for UB. Therefore another opportunity is to innovate their product line and keep on giving services that satisfy customers in a better way.
As mentioned there are still a large number of customers that have not been catered. By this I refer to the Government sector and the various ministries that have been left out of the approved list of companies. This area must be targeted in future strategies before MCB, HBL and other banks root themselves to deeply in this sector.
Threats:
UB faces many threats as competitive pressures have escalated in this particular industry. There are also some threats that UB faces apart from competitive pressures. All these are discussed below:
The aggressive advertising campaigns launched by other competitor banks are serving as the major threat of this organization. These campaigns often result in loss of customers for other banks as the sponsor bank gains a small part of the target market. The result is that UB also succumbs to the same mechanism as other banks.
Another threat is the future trend that shows that competitors are creeping up on UB with respect to number of customers as UB is offering slightly high markup rates. So this additional price is also a threat to UB.
At present the bank is facing problems in keeping a consistent policy for its products in areas such as criteria, documents required etc. As UB has tried to experiment in such areas and the result is an image of inconsistency that is developing in the minds of the dedicated sales staff towards the policy of the bank. This is resulting in misdirection and in some extreme cases chaos for the sales people who have committed to customers according to the previously existing policy. For e.g. with the initial launch of Amex cards the salary requirement for CCM-C companies was RS. 20000. However it was then changed to RS. 27000 and the bank has just recently settled on RS 35000 as the salary requirement for these companies at present. When potential customers who have ongoing deals face such situations the bank loses its image of trust and reliance. This may prove to be a major problem in the future.
Recommendation:
Union Bank is one of the up leading banking in Pakistan and it is doing very well in many aspects. My experience in Union Bank as a internee is good. During the course of my internship I have observed a lot of plus points and negative points of this organization. According to my observation. The following are the recommendations:
Ø
Union Bank must concentrates on promotion of their products.Ø
As their main strategy for the promotion is direct marketing by sales persons. They should create some diversity to their strategyØ
Union Bank is upcoming and trying to do something new so to compete with market they must reduce their markup rate in car financing and mortgage department.Ø
Domestic branch network is just fine but inter nation branches are not so much, so they must open some new branches outside Pakistan to increase the business.Ø
Debit card is up coming product in Pakistan and have much potential. Many other banks like HBL, ACBL start debit cards but Union Bank has not launch this product yet. They must introduce debit card.Ø
Union Bank must provide computers to all-important employees to increase the pace of work instead of giving to only managers.Ø
The branch infrastructure should be up to standard. The branch in which I work is not cope with strength of the employees.Ø
As Faislabad is an industrial city they must create good relations to the industrialist and make them as loyal customer.Ø
They must give incentive to lower management because most of incentive are given to top and middle managementØ
The basic pay of sales person is not so good, as they are the key person in increasing the market share of Union Bank.
List of Person Interviewed
1. Branch Manager Mr. Abdul Rauf for Introduction to Bank Date: 06-07-2003
2. RM Mortgages Department Mr. M. Ashfaq Date: 15-07-2003
3. RM Autos Department Mr. M. Khalid Date: 25-07-2003
4. VA Officer Mr. M.Idrees Date: 05-08-2003
5. Accouts Officer Mr. Atif Date: 10-08-2003
6. Account Opening Department Mr. Imran Khalid Date: 17-08-2003
Reference
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Reference # 1,2,3,4 from Website www.unionbank.com.pkØ
Reference # 5 from Annual ReportØ
Reference # 6,7,8 from BroachersØ
The persons in “List Of Interviews”
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