Topic: MEANS & MODES OF

CORPORATE FINANCING

Corporate Finance Means

Money makes a business go and that money
comes from different sources, namely equity and
debt.
Corporate finance is the study of sources of
finance and how to use the money raised to add
maximum value to the shareholders' wealth.
The primary goal of corporate finance is to figure
out how to maximize a company's value by
making good decisions about investment,
financing and dividends.

Objectives Of Corporate Finance

Means & Modes Of Financing

To Raise Long-Term and Medium-Term Capital:
Issue of Shares
Issue of Debentures
Loans from Financial Institutions
Loans from Commercial Banks
Public Deposits
Reinvestment of Profits

Means & Modes Of Financing

To Finance Short-Term Capital:
Trade Credit
Factoring
Discounting Bills of Exchange
Bank Overdraft and Cash Credit
ploughing back of profits

Practical Study
United Bank Limited
A commercial bank was established in 1959 by Agha Hassan
Abidi
UBL on October 19, 2002 was privatized and bought by best
way group and Abu Dhabi group holding51% of the banks
share
Presence in 10 countries world wide through 22 offices,
including Meddle East, USA, UK, and Switzerland
network of over 1300 online branches in Pakistan as well as
Overseas
UBL introduced Pakistans first credit card, the UNICARD in
70s
In 1967, UBL had hit the dawn on information in terms of
technology, by introducing computer banking to Pakistan

How Finance Is Raised By UBL

Along with deposits and savings accounts, banks are
also involved in lot of other following activities to raise
money:
By providing loans & charging interest on these
loans
To raise money, UBL take a considerable amount of
risk.
UBL raise capital by charging for its services.
UBL raise capital by underwriting
UBL provides assistance to their clients in foreign
exchange & stock markets

 UBL have various loans plans and financing

schemes at different interest rates to attract
maximum number of customers
UBL raise capital by providing travellers
cheques & opening letter of credit (LOC)

Different Financing by UBL

Lease Financing
Working Capital Financing
Bridge Financing
Syndicated Financing
Commercial Papers
Financing Against Liquid Securities
Agriculture & Livestock Financing
Corporate Term Finance Certificates (TFCs)
Import & Export Financing

SWOT Analysis
Strengths:
UBL is one of the oldest & largest commercial
bank in Pakistan
Stands in the list of Profitable bank in stock
exchange
Largest number of corporate deals by any bank is
Pakistan
It is involved in both corporate and retail banking
The bank is actively emerging and is engaged in
international trade and foreign exchange
transactions.

Weaknesses

During the nationalization life span of the

bank political lords used influence in
bank business
The application time is also quite lengthy.
Administrative expenses are more than 51% of
the markup revenue
Unsatisfactory Working conditions

Opportunities
UBL is surrounded by many competitors it has an
opportunity to aggressive marketing to increase
its business.
Increase the product range to meet the broader
range of customers needs.
Call centre services should be improved to
enhance their network
The efficiency of stock market and sound
exchange reserves level is providing a good
opportunities for effective investment decisions

Threats

Political instability in Pakistan

Large and increasing competition
Growing Global technology advancements

Conclusion
As awareness levels of customers have increased
and a number of people wish to invest in mutual
funds and securities, the need for agents to
attract the customer towards itself
UBL should engaged in such activities which are
helpful for the bank to be premier banking
institution of the Pakistan, although it is very
difficult and challenging goal but is realistic for
achieving.