Professional Documents
Culture Documents
Presented to
Mr. XXXXXX
Group Members
XXXXXXXXXX ID: - XXXX XXXXXXXXX ID: - XXXX XXXXXX ID: - XXXXXX XXXXXXXX ID: - XXXXXX XXXXXXX ID: - XXXXXXXX
STATEMENT OF SUBMISSION
In accordance with the requirement of the course of Change Management Final Project, We present the following project entitled Take over of UBL. This work was performed under the supervision of Mr.XXXXX We declare that all the work submitted in this project is our own and is by done by the combined effort of our group.
ACKNOWLEDGEMENTS
All prays and glory is to ALLAH who is the creator of the universe. We are grateful to ALLAH ALMIGHTY who gave us courage to make this project easily. We would like to thank our course teacher, Mr. xxxxx. He helped us in this project and has been a constant source of guidance throughout the course of Change Management. We would also thank our friends who helped us in the preparation of this project and their support lead to the completion of this project.
ABL CDC CDS Consortium CRO CVT GoP HBL HE HH HPk ICP ISE KSE LSE NBP OBE OFSD Ordinance PC PRCL SBP SCRA SECP SLIC SSGC TFC UAE UBL YoY
Allied Bank of Pakistan Limited Central Depository Company of Pakistan Limited Central Depository system The Abu Dhabi Group, UAE and The Bestway Group, UK Company Registration Office Capital Value Tax Government of Pakistan Habib Bank Limited His Excellency His Highness Hilal-e-Pakistan Investment Corporation of Pakistan Islamabad Stock Exchange (Guarantee) Limited Karachi Stock Exchange (Guarantee) Limited Lahore Stock Exchange (Guarantee) Limited National Bank of Pakistan Order of the British Empire Offer for Sale Document Companies Ordinance, 1984 Privatisation Commission Pakistan Reinsurance Company Limited State Bank of Pakistan Special Convertible Rupee Accounts Securities & Exchange Commission of Pakistan State Life Insurance Corporation of Pakistan Sui Southern Gas Company Limited Term Finance Certificate United Arab Emirates United Bank Limited Year on Year
Table of Contents
STATEMENT OF SUBMISSION....................................................................................iii ACKNOWLEDGEMENTS...............................................................................................iv GLOSSARY OF TECHNICAL TERMS AND ABBREVIATIONS................................v Chapter 1: INTRODUCTION.............................................................................................1 1.1 Traditional Banking..................................................................................................1 1.2 Mergers and Acquisitions.........................................................................................1 1.3 Change Management................................................................................................2 1.4 Role of Management in Organizational Change.......................................................2 1.5 Structure of Report....................................................................................................3 Chapter 2: INTRODUCTION TO UNITED BANK LIMITED.........................................4 2.1 United Bank Limited.................................................................................................4 2.2 History of UBL.........................................................................................................4 2.3 Shareholding Structure..............................................................................................5 2.4 The Abu Dhabi Group..............................................................................................5 2.5 The Bestway Group..................................................................................................6 2.6 The Board of Directors.............................................................................................7 CHAPTER 3: PRIVATIZATION OF UNITED BANK LIMITED...................................8 3.1 Reasons for Privatization..........................................................................................8 3.2 Bids & Process..........................................................................................................8 3.3 The Controversial Sale..............................................................................................9 3.4 The Consortium........................................................................................................9 CHAPTER 4: MANAGEMENT OF UNITED BANK LIMITED...................................11 4.1 Management of UBL .............................................................................................11 4.2 Profiles of Directors................................................................................................11 4.2.1 The President and CEO....................................................................................12 4.2.1 H.H. Shaikh Nahyan AL Nahyan HPK...........................................................13 4.2.1 Mr. Mohammed Pervez OBE, HPK................................................................14 CHAPTER 5: THE RECONSTRUCTION OF UNITED BANK LIMITED...................15 5.1 UBL Perspective.....................................................................................................15 5.2 The Objectives of Reform.......................................................................................15 5.2.1 Stem the Bleeding............................................................................................16 5.2.2 Create Key Building Blocks............................................................................16 5.2.3 Consolidate for Growth....................................................................................17 CHAPTER 6: SERVICES OF UBL ................................................................................18
INSITITUTE OF BUSINESS AND TECHNOLOGY (BIZTEK) 6.1 Services of UBL before Takeover..........................................................................18 6.1.1 Deposits............................................................................................................18 6.1.2 Loans................................................................................................................18 6.2 Services of UBL after Takeover.............................................................................19 6.2.1 Deposits............................................................................................................19 6.2.2 Loans................................................................................................................20 6.2.3 Services............................................................................................................20 6.2.4 NRP Services...................................................................................................20 CHAPTER 6: CONCLUSION AND FUTURE WORK..................................................21 6.1 Conclusion..............................................................................................................21 6.2 Future work ............................................................................................................21
Chapter 1: Introduction
Chapter 1: INTRODUCTION
Chapter 1: Introduction to state whereby some companies have limited protection against hostile takeovers. One form of protection against a hostile takeover is the shareholder rights plan, otherwise known as the "poison pill".
Chapter 1: Introduction which are at times very difficult. The end result is that management must help employees accept change and help them become well adjusted and effective once these changes have been implemented.
Al-Breamy
co.
for
trading./Baghdad-Iraq Al-Baz co. for Broadcasting, Auditorium and voice systems./Baghdad-Iraq AD Geophysical co. for geophysical services./Baghdad-Iraq Euro wall co. for pre fabricated buildings and constructions./Baghdad-Iraq Al-Jazeera Al-Arabia factory for steel wire fabrications./Baghdad-Iraq IBL co. International Business Link L.L.C./ Dubai-UAE Al-Omary Brothers co. for General Trading /Jebel Ali-Dubai-UAE AD co. for general trading./Calgary-Canada
per annum;
management of $9 billion;
Companies Bestway Cash & Carry United Bank Best-One - Retail Development MAP Trading Bestway Milling
His Highness Shaikh Nahayan Mabarak Chairman Al Nahayan Sir Mohammed Anwar Pervez, OBE, Deputy Chairman HPK Mr. Atif R. Bokhari Mr. Omar Ziad Jaafar Al Askari Mr. Zameer Mohammed Choudrey Dr. Ashfaque Hasan Khan Mr. Muhammad Sami Saeed Mr. Aqeel Ahmed Nasir Mr. Aameer Karachiwalla President & CEO Director Director Director Director Company Secretary & Chief Legal SEVP/Group Chief Financial Officer
Chapter 3: Privatization of United Bank Limited The bidders from Pakistan included Aqeel Karim Dhedhi Securities (Pvt) Ltd., Central Insurance Co. Ltd. (Dawood Group Co.), Fauji Foundation (Pakistan), Amsterdam Trust Corporation (TC) (Netherlands), M. Abdullah and Associates, Institute of Overseas Pakistanis, Invest Capital Securities (Pvt) Ltd., MCB and Union Bank Ltd. Abu Dhabi Group has given a renewed offer of Rs.12.3 billion, slightly higher than MCB's improved bid of Rs.12 billion. Other two parties, Abu Dhabi Group, did not match either MCB's earlier offered bid of Rs.8.5 billion or the improved bid of Rs.12 billion. The MCB's improved bid is higher of PC's reserved price of Rs.11.8 billion.
Chapter 3: Privatization of United Bank Limited bid from Rs12.3 billion to Rs12.35 billion. The representatives of all the three prequalified bidders were present on the occasion. However, only Abu Dhabi group took part in the fresh bidding, and increased its bid to Rs12.35 billion. The Muslim Commercial Bank (MCB) group, which was the highest bidder in the previous bidding by giving an Rs 12 billion bid, did not opt for the fresh bidding. UBL is the 4th largest bank in Pakistan. It has a 9 per cent market with 1,101 branches across Pakistan as well as a valuable franchise of 16 international branches in the US, and the Middle East, with a subsidiary in Switzerland, rep offices in Egypt and Iran and a 55 per cent stake and management control in UKbased join venture with 7 branches and a 25 per cent stake in a joint venture in Oman.
Chapter 6: Conclusion and Future Work promoted to SEVP & Group Head, Corporate and Investment Banking, and a member of the HBLs management committee. In this position he managed the largest Corporate and Investment Banking portfolio amongst all banks operating in Pakistan, and successfully established HBL as a leading bank in Corporate and Investment Banking area of Pakistan through a focused strategy and new initiatives. Mr. Atif Bokhari is an MBA (Economics & Finance) from Central Missouri University, USA. He started his career with ICI (Pakistan) in October 1983. Subsequently for 15 years he worked at the Bank of America rising to corporate /Credit Marketing Manager.
Chairman, Union National Bank, UAE Chairman, Warid Telecom (Pvt) Limited, Pakistan Chairman, Abu Dhabi Group of Companies Chancellor, UAE University, Al Ain, UAE Chancellor, Sheikh Zayed University, UAE Chancellor, Higher Colleges of Technology, Abu Dhabi President, Society of Natural History and National Heritage, UAE
As of year-end the bank had Negative equity Heavy & continuing operating losses due to Overstaffing 21,500 employees Over branching 1,701 branches NPLs 60 % of total loans
An international network (9 countries) incurring substantial losses and under pressure from all regulators. A lack of systems and controls across the board. Demoralized staff, declining deposits & market share.
Data integrity / Timeliness (P&L, Balance Sheet) Credit policies / controls / review / monitoring (previously all approvals with executive committee of Board) Strengthen / revamp audit process (25% of new hires into audit) Treasury track and manage liquidity / positions Human Resources make performance driven
Chapter 6: Conclusion and Future Work Facilitate recovery of bad debts set up specialized remedial management units Work on government to resolve public sector default cases to cut drag and signal support / commitment Establish corporate bank structure for domestic network to limit flow of new NPLs, enhance image Finalize / implement technology plan PC based, hub driven regions) Based on above progress (Phases 1 & 2) push for capital injection by government (zones /
Essentially upgrade processes / consolidate for growth Implement next downsizing stage voluntary/non-officials Build overseas franchises develop strategies, staff up, clean out NPLs, improve service / ability to lend Deepen corporate banking effort & implement SME strategy, protect top consumer relationships Extend automation to cover all key branches (150) Drive down pay for performance message
6.1.1 Deposits
UBL Business Partner (Current Account) Rupee Transactional Account (RTA) UBL Basic Banking Account - BBA Regular Term Deposits Receipts Foreign Currency Savings Foreign Currency Term Deposits
6.1.2 Loans
Home Loans Business Loans Zarai Loan
6.2.2 Loans
UBL has taken progressive steps and has introduced innovative products and services to provide you a variety of banking and financing services. UBL Credit Card UBL Money UBL Businessline UBL Cash line UBL Address UBL Drive UBL Pay Plus
6.2.3 Services
UBL has taken progressive steps and has introduced innovative products and services to provide you a variety of banking and financing services. UBL net banking UBL e-statement Humrah UBL Wallet UBL Online (for corporate customers only)
Investments
Chapter 6: Conclusion and Future Work UBL Funds Manager UBL net banking
Electronic Access -
6.1 Conclusion
The Reconstruction of the United Bank Limited did brought many new lessons learnt throughout. The change in laws was the key. There were mainly some important aspects including the Consultants, Downsizing, Existing staff, New hires, On Reform, On Privatizations.
competitive entities that can be privatized Temptation to retain once fixed but privatization is critical Set realistic targets start with more doable ones!
Chapter 6: Conclusion and Future Work Following is a quotation which can help us to imagine the future of banking.
"They're not going to stand in line. They're comfortable using the Internet and they expect organizations like yours to have that presence."
In the future, the Web customers will be able to pay bills directly from their accounts and get stock trading confirmations. They'll also get messages from the bank, such as a warning that their mortgage is due in three months or an announcement that a new mutual fund has Work
The CBG department of UBL defines corporate banking in Pakistan. Amongst the local banks UBL CBG is the pioneer in providing innovative solutions to its diversified and satisfied customer base. UBL CBG is considered to be a major player in the financial market of Pakistan.