Rural Banking - Background Pakistan has great potential in agriculture. About 27% of the total 80 million hectares of the country is under cultivation. Agriculture contributes about 21% of the GDP and employs more than 43% of the labour force. Total Universe of 8 million Rural Households Total Potential as per GDP Rs. 7.0 Trillion Paradigm shift in Rural Economy from seasonal to perennial cash flow generating activities(tunnel farming, Dairy Farming Livestock and Poultry Etc.) Total deposits Rural Deposits as per SBP (2015) 550Billion. Huge Potential for the growth. Extensive Branch Net Work is the key in taping that potential. Source: State Bank of Pakistan

UBL- Rural Banking Introduction: Rural Banking is Oriented towards meeting the needs of Specifically Rural Population, consisting of Farmers, Agri-laborers, Artisan & Rural Entrepreneurs UBL Rural Banking is a financial inclusion drive for bringing rural population to the formal banking network. UBL presence in the rural communities will help Rural Banking in establishing a lasting relationship with rural customers. Objective The prime objective of UBL Rural Banking will be focusing economic and above economic size farmers / land holders, small size rural businessmen, agriculture based business in the rural areas for financial inclusion and low cost deposit mobilization.

Pakistan: Fact-File Total Population191 million Rural Population116 million (66%) Total Rural Households8 million Banked Rural Households2.2 million Rural Share to GDP~51% Contribution to Labor Force43.7% Contribution to Exports60% Source: SBP & Economic Survey of Pakistan Huge untapped Rural population chunk, represents our target market. 116M (66%) 75M (34%) 5.8M 72.5% 2.2M 27.5% 77M Adult Rural Population

Karachi Hyderabad Sukkur Lahore Sahiwal Mirpur Sialkot Bhawalpur Gujranwala Faisalabad Muzaffarabad Gujrat Mardan Rawalpindi Islamabad Quetta Jhelum Peshawar Sargoda Dera Ismail Khan Multan Why Rural Banking is important to UBL?  Potential of Huge Business Volume  Comparatively High Margins  SBP & GoP focus 1340 UBL Branches 600 Rural Branches “Muscle Power” One of the biggest Commercial Banks in Pakistan  Foot-Print of Branches  Strong brand recognition due to historical presence, vast branch network and services offered  Focus on product penetration across all segments in particular infrastructure and project finance, consumer, agriculture and SME

Poverty Alleviation Uplift of Rural Masses by extending credit to the small scale Economic Activities Financial Intermediation Increasing the accessibility of banking Services to the poor in a commercially sustainable manner Developmental Marketing Variable Lending Rates New product lines & Delivery Models Development of customized ATM ATM enabled Kissan Cards Developing Franchise Model Partnership with NGOs for financing Simplified & accessible Loan procedure Sourcing of Agri produce from rural areas for urban/global markets Increasing Cororate interest in Agri- Business Strengthening Loan Recoveries Lower level of Non-Performing assts (NPAs) in rural areas Large Untapped Market Develop a Rural Specific Marketing Mix The NEXT biggest challenge for Pakistani banks is to capture the banking business of over 50% population of 200 million

Research Product development Product management Business management Value Chain Linkages Serving Banking Needs of Rural Pakistan Rural Assets Borrower Assessment Facility & Security Assessment Cash Flow Analysis Sanction, Monitoring & Collection

UBL- Rural Banking To meet Financial Needs of Rural Area customers UBL Rural Banking Lending Microfinance/Small Enterprise Loans Microfinance/Small Enterprise Loans Kissan Credit Card Kissan Credit Card Agri Insurance Agri Insurance Marketing of Mutual Fund Marketing of Mutual Fund Lending Microfinance/Small Enterprise Loans Microfinance/Small Enterprise Loans Kissan Credit Card Kissan Credit Card Agri Insurance Agri Insurance Marketing of Mutual Fund Marketing of Mutual Fund

Partnering to extend further; 30,000+ Omni Dukans116 branches

Rural Banking Market Niche Farmers Agro Enterprises Households Workers Teachers Distribution Facilities Wider Consumer Choices: Insurance – Debit / Credit Cards – ATMs – Remittances Cards – Mobile Banking Farm loans Deposit Services Remittances & Bill Payments Phone Banking Branchless/ Third party Services ATM Services Cards Insurance Non Farm Loans