Final Project

Advance Performance Management

Company

Prepared for:-

Sir M.Gulzar

Group Members
Names ID#

Hafiz M.Imtiaz 100645-015

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History of UBL

United Bank Limited was established in November 1959. The bank was sponsored by
the saigol Group of Companies, which were the mainstay of the textile industry in
Pakistan at that time. Within a short period of time, the bank emerged as the third
largest in the country after HBL and NBP. The bank was nationalized in 1974. Later on
another bank the commerce bank limited was merged into UBL.

UBL was the third bank to be offered for privatization. Initially, a Saudi based
financial institution; Bashrahil Group came up with the highest bid for the bank, and
deposited the first tranche for its consideration. However, due to flaws in the
transaction, the SBP cancelled the privatization and took over the bank in 1995.

The Bank’s total income including interest and non-interest income amounted
to RS.4935 million in 1995, its deposits were RS. 109 billion and investments were
RS.25 billion in 1995. UBL incurred a loss of RS.724 million in 1995.

In 1996 the management of the bank was changed and by mid 1997 the
financial and administrative discipline was restored. The interference of the
government was eliminated and the non-performing loans recovery was increased
and the liquidity position was brought up to the required level. About RS.6.3 billion
were recovered out of which about RS.5 billion were domestic and of this about Rs.
4.5 billion was recovered in cash.

A right sizing program was initiated as well as an aggressive branch

rationalization strategy by which 203 loss making branches were shut down and
profitable ones were opened in other areas. Surplus staff was removed which
amounted to 5416 employees. The entire audit system was revamped.

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United Bank Limited Introduction

Mission Statement of UBL:

“To develop and deliver the most innovative

product, manage customer experience, deliver quality

service that contributes to brand strength, establish a

comparative advantage and enhance profitability,

providing value to the stakeholders of bank”

UBL Vision:

“To be the premier organizations operating

locally & internationally that provides the

complete range of financial services to all

segments under one roof”

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SWOT Analysis

i. Strengths:
 3rd largest Bank of Pakistan in term of deposits
 2nd largest Privatized Bank of Pakistan
 UBL offering Customized Products and services aggressively better
then its competitors
 Improved operational efficiency as to its past
 Courteous Customer service and fast delivery of online and offline
services
 Marvelous Image and Reputation of the bank in the eyes of its
customers
 Extensive Branch network
 UBL Product positioning is very effective
 UBL target the segment like salaried person, business people and self
employed person
 UBL product positioning affect the life style of the people as they help
in improving standard of living
 1056 Branches all over Pakistan
 Stands in the list of Profitable bank in stock exchange
 Largest number of corporate deals by any bank is Pakistan
 Overseas Branches
 Attractive Salaries and incentives for employees
 Personnel of UBL are very well trained. Majority of employees have
many years of experience in banking sector and are an asset for the
bank.

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 ii. Weaknesses:
 No standardization in terms of branches some of the branches are
very attractive and most of the branches are not very good like other
branches.
 In some regions, urban areas of Pakistan service of UBL is not good as
compared to other privatized banks
 The application time is also quite lengthy.
 UBL is a step behind in using new technology as compared to other
banks
 All branches need orientation for customer dealing.
 Most of the employees are overload with the work and promotion is
also not timely.
 Most of employees are experienced and they are not able to deal
customers well, adopt new culture and above all they are unable to
use of new technology like computers.
 No separate training center to train their employees
 Employees are not well dressed
 Workforce is not diverse
 Security system in most of the branches is not up to the mark.

iii. Opportunities:
 Bank can extend its network in other cities of Pakistan like other 4
remote cities, it would increase their sales.
 Proper orientation of employees in all branches can help them to
cope up with foreign banks
 By bringing new technology and modern business processes will bring
the change and increase their profitability
 Call centre services should be improved to enhance their network

iv. Threats:

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Organization Chart:
Large and increasing competition.
High operating costs
Lack of huge deposits

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n
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The organization design of UBL is Horizontal (which has low hierarchical level). There are
different Groups containing 10 to 12 people which are assigned different tasks to work
on each group has its own supervisor who supervise all employees in its group.

Organizational Values:

•Trust and Integrity

•Respect for people
UBL Structure

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 •Responsible corporate citizens
•Passion for business excellence
•Commitment to total customer’s satisfaction

Performance Appraisal:

In performance appraisal of employees UBL use Graphic Rating Scale Method (a

scale that lists a number of traits and a range of performance for each. Employee is then
rated by identifying the score that best describes his or her level of performance for
each trait) in which UBL measure the characteristics and previous performance of
employees and then rank them subsequently.

In the performance process UBL first discuss the job and duties assigned to the
each subordinate in the Groups. After that they compare their actual performance with
the standards which are set by the UBL. Then the performance reports of subordinates
are discussed with them and make plans if any development is required or not.

Customer satisfaction:
Satisfaction of customers:

By providing best services to the customers

Confidence of customers:

Bank provides quality services and understand the problems by attention, customers feel
relax because they know we can do as they want.

Accounts provides to the customers:

Fixed deposit account, current account, saving accounts

In case of any complaint:

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Bank have a department of resolution to check the complaints and have treatment with in
an hour

Financial Measure:
Daily transactions:

Due to increase in the number of clients transaction are increased

UBL increase the number of branches in big and small cities of Pakistan

Market shares:

UBL in the 2nd largest commercial banking network in Pakistan

Have more than 17 overseas branches and profit in 2009 was

Rs 20,050,017 it increase in this year, in 2008 it was Rs 14,907,201

Earning per share:

In 2008 EPS Rs 3.09 and in 2009 EPS was Rs 2.72

Internal efficiency:
New products

More than 12 new products introduced recently like: visa, OMNI, Better life and much more
products

Employee’s performance

The measurement of employees performance by giving some targets, check their tasks

There is minor chance of error because all work is computerized no manually work done

Relationship with customers

Customers freely tell their problems with bank and bank provides best services as they
want. Some customers are very important for bank and the bank invite them on ceremonies
to encourage

Encouragement of employees

Some annually bonus, support awards, cash reward by these ways bank encourage the
employees also performance awards

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Cards:

Prepaid cards, debit cards ,visa debit and visa credit and master cards

Productivity:

Technology used:

Secure technology used in banking.

Improvements in technology

Online secure banking, mobile banking you can billing by mobile at any time every where

Learning

Held some meetings in which lecture session helps to trained to understand the new
product and new service how to use are explain to the customers

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