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An Analysis of the Activities of General Banking Division and Credit Division of Uttara Bank Limited

CHAPTER-01

Introduction 1.1

Introduction

Banking system Occupies an important place in a nation economics a banking intuitions is indispensable in a modern society. It plays a pivots role in the economics development of a country and forms the core of the money market in a advance country, in recent times the banking sector of the world has been undergoing a lot of changes due to deregulation. Technological innovation, globalization etc. Bangladesh Banking sector is lagging for behind in adopting these changes. To thrive well in this changing environment, but only development of appropriate infrastructure is necessary but also infusion of professionalism in to banking service is essential. The banking sector is one of the highly regulated sectors in our country. It is governed by the rules and regulation of central bank of the country i.e. Bangladesh bank and security and Exchange commission. The bank companies are forced to comply the best accounting practices. It strictly follows international Accounting Standard (IAS) norms. It publishes to financial statement every year getting it duly audited by recognized audit firms. Every bank of our country has a division named financial Administration Division (FAD) which takes care of the accounting issues of the Bank. Most of the personnel who lead these divisions are of accounting background. Among the account based FAD personnel who know the banking operation better can contribute mere in the banks.

1.2

History Behind the report

For Internship report each student has to prepare a report on their choice. According to this requirement, I have already completed by internship report on the Bangladesh ltd. I know the conventional banking system. For by reporting purpose a lot of time I went IVTRA to collect necessary information. On the basis of my practical experience as well as theoretical knowledge, I have completed the report regarding “An Analysis of the Activities of General Banking Division and Credit Division of Uttara Bank Limited. Malibag Chowdhuri para Branch� the main focus of my study is to analyze the deposit and banking system. Conventional bank is given by interest against its deposit and lend money or issue securities with fixed interest. Instead it finance in various schemes approved by council board to achieve its goal.

1.3

Objective of the study

The main objectives of the study are to gather practical knowledge regarding banking system and operation. This practical orientation gives us a chance to coordinate out theoretical


knowledge with the practical experience. The following are of objective for this practical orientated in bank. • To apply theoretical knowledge in the practical field. • To find out the overall features deposit scheme of UBL • To find out the strength and weakness of deposit scheme of UBL • To fined out the overall pictures of investment of UBL. • To identify strength and weakness of lending of overall banding system, • To identify the problems related to investments faced by UBL and other conventional bank.

1.4

Scope of the study

The conventional banking system is acquired by the practical knowledge of the Uttara Bank Malibag Chowdhuri Para Branch. They are nationally Commercial Banks, local private Commercial bank. I am working condition set up air-condition. The bank is working processed used by computer excel. I am acquiring by the knowledge observation face to face conversation. I required by the one desk to other desk. I am working conventional banking system of Uttara Bank Limited. The banking division in internship is practical report of the general banking division and credit section. The internship report of the University is an integral part of the BBA program. So it is obligatory to undertake such task by the students who desirous to complete and successfully end-up their BBA degree. This also provides an opportunity to the students to minimize the gap between theoretical and practical knowledge. During the internship the teachers of the department are attached to actively and constantly guide the students. Students are required to work on a specific topic based on their theoretical and practical knowledge acquired during the period of the internship program and then submit it to the teacher. That is why we have prepared this report.

1.5

Methodology of the study

For smooth and accurate study every one have to follow some rules and regulation, the study impute were collected from two sources (a) Primary sources I. practical desk work II. face to face conversation with the officer III. direct observations (b) secondary sources I. Annual report of UBL II. Files & Folders III. Memos & circulars IV. Various publications on Bank V. Websites VI. Different circulars sent by Head office and Bangladesh Bank

1.6

Time Schedule

> Data Collection…………………………………………………. 30 Days > Data Analysis …………………………………………………. 20 Days


> Report Writing…………………………………………………. 20 Days > Revise .. ..………………………………………………. 10 Days > Finalise .…………………………………………………. 10 Days

1.7

Limitation of the report

There were some problems while I conducting the orientation program, a wholehearted effort was applied to conduct the orientation program and to bring a reliable and fruitful result, in spite of having the wholehearted effort, there exit some limitation which acted as a barrier to conduct the program. The limitations were… • Sometimes I was assigned to do some jobs without explaining why this work in to be done. this situation has created a lot of problems to understand why a specific function is being performed. • All the concerned personnel of the bank have not been interviewed. • Lack if in depth knowledge and analytical ability for writing such report. • Lack of experience. • Learning all the banking function about credit within just two and half months was really tough. • Another limitation of this report is banks policy of not disclosing some data and information for obvious reason, which could be very much usefull

CHEPTER: TWO Profile of the Organization

2.1

An Overview of Uttara Bank Limited.

Uttara Bank is one of the largest and oldest private sector commercial bank in Bangladesh, with years of experience. Adaptation of modern technology both in terms of equipment and banking practice ensures efficient services to clients 207 branches at home and 600 affiliates worldwide create efficient networking and reach capability. Uttara is a bank that serves both clients and country.

2.2

Historical Background of UBL

Uttara Bank Limited is deeply related with the history tradition and living standard of human of the country. This Bank started its operations on 28th January 1965 as a commercial bank by Eastern Banking Corporation, which is interpreting by a private organization. In 1972 the Bank takes this name Uttara Bank. It had been limited company in 1983 that is named Uttara Bank limited. On 21st August 1983 it

2.3

Objectives of Uttara Bank Ltd.

The objectives of UBL are follows: • Mobilize deposit from the surplus economic unit to deficit economic unit. • Cater to all different segments of retails and wholesale customer. • Be a high quality distributor of products and services.


• • • • • •

Serve the people of the country by providing financial assistance. Help the nation in reducing the employment problem by securing services to a large number of people. Ensure balanced economic development though out the country. To expand business. To keep position in the competitive market. To contribute in profitability of UBL.

2.4 Features of UBL The bank is committed to turn all its activities as per council board. UBL through its steady progress and continuous success has earned the reputation of being one of the leading private sector banks of the country. The distinguishing features of UBL are as follow: • All its activities are conducted on interest banking system according to council board. • Establishment of participatory banking instead of banking in debtor creditor relationship. • Investment is made though deterrent modes permitted under council board. • Investment income of the bank shared with depositors according to a ratio to endure a reasonable fair rate of return on their depositors. • It aims are to introduce a welfare oriented banking system and also to establish equity and justice in the field of all economic activities. • It extends economic and financial services to the poor , helpless and height income group of the people for their economic up liftman particularly in the rural areas. • It plays a vital role in human resource development and employment generation particularly for the unemployed youths. • Its aim is to achieve balanced growth and equitable development of the country through diversified investment operations particularly in the priority sector and in the less developed. • It extends cooperation to the poor the helpless and the height income group for their economic development.

2.5

Function of UBL

The operation of Uttara Bank Limited. Can be divided into three major categories: 2.5.1 General banking : it includes:a) Mobilization of deposits. b) Receipts and payment of cash. c) Handling transfer transaction d) Operations of clearing house e) Maintenance of accounts with Bangladesh band and other bank f) Collection of cheque and bill g) Issue and payment of Demand Draft, telegraphic trader and payment order h) Executing customers standing instructions i) Maintenance of sate deposit lockers


j) Maintenance of internal accounts of the bank While doing all the above noted work UBL issue cheques-book, Deposit account operating form, SS card, Ledgers, Cash book. Deposit account ledgers, preparation statement of accounts. Pass Book, Balance of different accounts and calculated profits

UBL offers to open the following account to the depositors: • • • •

Current Account Saving Account Term Deposit account. (3 month/6month /12 month /36month / 60 month) Cash Credit Account.

2.5.1

Foreign Exchange Business:

Foreign Exchange Business plays a vital role in providing substantial revenue un the bank income pool. • Opening letter of credit against commission for importing industrial agricultural and other permissible items under council board. • Opening letter of credit on the principle of sale, on the principle of under wage earner scheme. • Handling of export /import document. • Negotiation of export and import document when discrepancy occurs. • Financing import under import board. • Financing to export on profit or loss sharing • Handling inward and outward remittance.

2.5.2

Other activities

The UBL performs the following task for the welfare of the nation. There are some point which is below:• Income generating scheme for the unemployed youth of the nation. • Monorom sale center for marketing homemade garment, handicraft and other items. • Education scheme for assisting poor scholar student to case and help them to continue their study. • Health scheme for fulfillment of health needs of rural people. • Uttara University was established to extend service toe the student. CHAPTER: THREE Literature Review

3.1

What is Bank?

The word “Bank” bas been originated from an Italian word “BANCO” expressing the meaning. “A tall bench”


A Financial institution which buys money at lower price and sells money at higher price is called bank. In the crude language spread means the difference between the deposit rate and lending rate i.e spread =lending rate-Deposit rate.

Islamic Bank: Financial institutions whose statute rules regulation and procedures expressing state its commitment to the Islamic shariah and to the banning of receipts and payments of interest in any of its activities is called Islamic bank.

3.2 • • • • •

3.3

Objective of a Bank. To facilitate the transferring of fund from the surplus unit to deficit unit To accelerate the savings To accelerate the investment To enhance the economies development To facilitate the trades and commerce’s

Draw distinctions between Islamic and conventional Bank.

Islamic bank 1. Financial institutions whose statute rules regulation and procedures expressing state its commitment to the Islamic shariah and to the banning of receipts and payments of interest in any of its activities is called Islamic bank.

Conventional bank Financial institutions whose statute rules regulation and procedures expressing state its commitment to the banning of receipts and payments of interest in any of its activities is called Islamic bank.

2. The Islamic Bank is deals with the tangible assets. 3. this bank is profit based. 4.This bank is run their businesses approved by the shariah board and stated law. 5. There are two boards: Board of directors and shariah board.

Conventional banking system is processed. Basically deals with the intangibles assets. This bank is interest based. The conventional bank can run the business accepted by the state law. There is only one board: Boars of directors.

3.4

Banking system in Bangladesh.

Bangladesh Bank was established on the 16th December 1971 was per Bangladesh Bank order 1971 Presidents order member 127. Before this the name central bank was state bank of


Pakistan. On the 16th December, 1971 one of the deputy Governors of state bank of Pakistan was declare as Bangladesh.

CHAPTER: FOUR Analysis and Findings

General Banking department General Banking department is considered as the direct service center. The clients and customer build their impression whether they are going for further dealings with the bank or not on the basis of the service in the department, Moreover this department is the one that gives the first impression about the bank to the clients. So, general department should be taken carefully.

4.1 Function of General Banking The functions of general banking are as follows: • Establishment of banker-customer relationship. • Remitting customer’s money from one place to another. • Collection bills for customers. • Taking deposits and honoring cheques drawn over local office.

4.2 Different Parts of General Banking:

General Banking Department constitutes of the following sections: • Account Opening Section • Cash and Computer Section • Remittance Section • Clearing Section The functions of the different department are discussed below:

4.3 Account Opening: Banking business is very much correlated with banker customer relationship. To be a customer one person must have some sort of banking relationship with the bank. Account opening section establishes that relationship by opening a new account for the customer. Uttara Bank Limited. Allows its clients to open the following types of accounts and receives deposits in those accounts.

Types of Accounts: 1. 2. 3. 4.

Current Deposit Savings Bank Deposit Fixed Deposit Short Term Deposit

Key Features of opening an account in UBL:


1. Current deposit account: Current deposit accounts should be opened with a minimum amount of TK. 1000/= But under special circumstances in may be opened with TL. 500/=. It is payable on demand, No interest is paid in these types of accounts. 2. Savings Bank Deposit Account. Minimum amount of TK.500/= is required for opening this type of account, the account may not be retained it the balance falls below TK.200/= Not more than one account should be opened in one name. A depositor is allowed to withdraw per week up to 25% of the balance of his or her account. For calculation of interest the minimum balance at the credit of an account by the close of 8th the month should be taken into consideration.

Fixed Deposit Account: Fixed deposit accounts are opened for a diced period, varying from three months to three years or above and are payable at a fixed date of maturity, interest on this deposit is paid at the rate fixed by Head office of the from time to time depending on the period of maturity. Interest is payable only at the maturity of the deposit. The following table shows different FDR rates: Periods From 3 months up to 6 months From 6 months up to 1 year From 1 year up to 2 year From 2 year up to 3 year

FDR Rate 9.5% 10% 10.5% 11.5%

4.Short Term Deposit Account:

The deposits held in these accounts should be payable on short time, lice in 7 days or in 30 days. The deposits may be accepted for a certain period and Head Office fixes the rate of interest from time to time. The STD interest rate in UBL is 5.5% .

Nature of Accounts UBL may open following types of accounts: 1. Individual Accounts 2. Joint Accounts 3. Proprietorship Firm Accounts 4. Partnership Concerns Accounts 5. Private Limited Companies Accounts 6. Public Limited Companies Accounts 7. Accounts of Societies, Clubs, Association etc 8. Trust Accounts 9. Accounts of Local Authorities

General procedure of opening accounts: Current Deposit Account: • •

The account opening form of current deposit account and specimen signature card is supplied to the customers, which is filled and signed by them. In case of individual account, an account holder signs the AOF and SSC in his / her individual capacity both under yours faithfully and specimen Signature. In case of


• • • • • • • • • • • •

partnership firms & proprietary concerns, it is to be signed by the persons / partners in their individual capacity under Yours Faithfully and in their official capacity under Specimen Signature. in other cases private and public limited company both signatures must be in official capacity. ACD account holder of the bank shall introduce the new account holder. An Elite of the locality, who is well known to the banker can introduce it, official other than the staff of UBL can also introduce it. Clear instructions with regard to operations are noted in the AOF and SSC Specially in case of death or inability of any kind in regard of the joint account holder. The officer in charge of the Deposit Department verifies the signature of the introducer. The stamp signature verified is affixed near the signature of the introducer and the deposit officer signs over it. Approval of the branch in charge in obtained on the Account Opening Form. The signature of the account holder is admitted by the in charge of deposit department and signature Admitted stamp is affixed near the specimen signature of the account holder. Particulars of the account opening form are entered in the account opened & closed register in a serial order. The account number allotted to the new account in given on the AOF, SSC and on Cheque book requisition slip. The customer is supplied with a pay in Slip Book and requested to deposit the money with cash officer. Cheque is only issued after the account opening form has been completed is all respects and initial cash deposit has been made. The cheque book series is noted in the cheque requisition slip. Particulars of the account opening form are entered in the Reference Book under alphabetical order. Accounting opening forms are posted in a file in serial order, on the other hand, the specimen signature cards are placed in the Specimen signature card Box in numerical order. Lastly, while issuing new cheque book signature on the cheque book requisition forms should be properly verified.

Saving Bank Deposit Account: The procedures of opening current deposit accounts are also applicable for opening the savings bank deposit accounts. There are only the following exceptions. o Use of separate Account opened & closed Register also reference book and posting files are different here. o Pay –in-Slip Book Fixed Deposit Account: • Account opening form and specimen signature card should be given to the customer. • Voucher no. SF-12, crediting “Fixed Deposit Account” with the amount of deposit with full narration should be prepared and should be given to the deposit cash with the cash officer after recording the particulars. In case of payment by cheque, it should be attached with the credit voucher and sent to the deposit department for posting.


• • • • • •

On receipt of the vouchers from the cash department, a fixed deposit receipt should be prepared and recorded. To admit the signature of the account holder the stamp “Signature Admitted” should be affixed near the specimen signature card. The AOF, SSC, the voucher and the recording ledger should be sent to the officer in charge for signature. Then the documents should be sent to the manager official for his/her signature on those. The branch manager should ensure that the printer number on the deposit receipt books in use are invariable noted. At the closing of each business day, the officer in charge should verify the total amount for which the deposit receipt has been used during the day, both from the credit vouchers and the counter foils of the various deposit receipts.

Documentation: Current Deposit Account: The following documents duly completed should be obtained from the customer at the time of opening a current deposit account of: 1. Individual/Joint 2. Partnership Firms 3. Proprietorship counters 4. Societies, Clubs, Associations

The documents are: • •

√ Account opening form √ Specimen signature card Mandate for opening an individual account is obtained where a customer wants to authorize another person to operate the account √ Certified true copies of by laws in case of societies, clubs, associations and limited companies etc. √ Certified copies of resolution authorizing and operating of account with the bank passed by the Executive committee of the society, club or association and limited companies etc. √ List the numbers of the executive committee, list of directors.

Partnership firms: For limited companies, corporation, autonomous bodies the following documents should be collected. • Account opening form • Specimen signature cark • Memorandum and Articles of Association • Resolution of the Board of Director authorizing opening the account with the bank. • Certificate of Incorporation


• • •

Certificate of Commencement of Business List of Directors Act / Ordinance etc. in case of corporations/ Autonomous Bodies

Savings Bank Account: • • •

Account opening form Specimen signature card Mandate should be obtained in case the customer wants to authorize another person to operate the account

Fixed Deposit Account: • •

Account opening form Specimen signature card

Short Term Deposit Account Form, which is used for CD account, can also be used for opening this type of account. Notice period should be noted in the special instruction column.

Transfer of Account to other Branch An account holder can request to transfer hid/ her account by gibing the following instructions: 1) Reasons for transferring the account 2) Address at which he /she is to contacted by the transferee branch 3) The unutilized check book must be returned to the transferring branch before transferee branch before transfer of account. At first, the approval should be verified by the manager to transfer the account. Then the specimen of the for working letter of transferee branch should be sent. After the application is received duly approved from the manager, the branch transfers the account.

Closing of an Account To close an account, one may be requested to send an application along with the unused pages of the check book that is issued to the person. After receiving the application, the signature of the account holder should be verified and the number of unused pages of the check book should be noted. Before the account is closed the manager will approve the application. Lastly closing charge should be debited to the account.

Cheque: A cheque is a very important document. Cheque is an instrument in printed form containing an unconditional order. Signed by the account holder directing a certain person to pay certain amount of money only to or to the order of a certain person or to by barer of the instrument, a cheque is always supposed to be drawn against the funds in the person’s account in the bank.

Issue of a Cheque Book:


At the time of opening an account, a person is required to sign a “Cheque Book Requisition Slip”. If the account opening form is found complete in all respects, a cheque book is issued to client, the account number is written in cash leaf of the cheque book and in it requisition slip. The name and account number of the client is also entered in the Departmental cheque books issued register against the particular cheque book series and it is also recorded in the computer. Lastly the requisition slip is preserved as voucher.

4.2.2 Cash section Cash is one of the most important sections of general banking department because it deals cash. Function • Receiving cash • Paying Cash • Issuing Vouchers • Keeping record 4.2.3 There are some frequent situations, such as customer of a bank needs to transfer his her fund or money to some where within the country boundary , if is really a risky thing to carry a big amount of money from on place to another so most of the time they just purchase an instrument or mean so that their fund can be transferred thorough his/ her own bank. This sort of activities is cubed under the inland Remittance. These are • Demand Draft • Telegraphic Transfer • Pay Order • These are discussed below:

Demand Draft: This is an order to pay money, drawn by one branch of a bank upon another branch of the same bank for a sum of money payable to order on demand.

Procedure of issuing D.D Against Cash: A client is asked to complete a form. This is treated as an application as well as credit voucher for head office account. Commission charges are calculated and inserted the voucher is given to the client to deposit the cash; the cashier receives the cash and delivers the voucher to the remittance department against initials in his/her book. Draft is prepared and recorded in the Draft issued register. The amount of the draft is also protecting graphed. The draft number is written on the voucher, then the officer in charge checks and signs the draft and the other vouchers. After that a second officer gives his/her signature in the draft and also in the other vouchers. a credit voucher and head office advices are sent to the accounts department. Lastly, advices are sent to Dispatch section for onward transmission to the respective branches.


Against Cheque: The Cheque is sent for passing and collection. After the Cheque is passed, similar procedures are Explained in case of cash are adopted.

Against letter of instruction: The letter is cent to the deposit section for verification of signatures. The letter is attached with the debit voucher. After the debit voucher is passed, similar procedures as explained in case of cash are adopted.

Cancellation of D.D On receipt of application along with the demand draft for its cancellation the signature of the applicant is verified from of original application form. The genuineness of the D.D is also examined. Before the drags is cancelled it is ascertained they no duplicate draft has been issued and the drawee branch has not paid the same earlier, the draft is cancelled by tearing out the signature there on and a note on this effect in red ink is made in the original application form. Lastly, the cancelled draft is attached with the debit voucher.

Payment of D.D On receipt of advice from drawing branches the particulars are checked and initialed by the incharge.

Payment in cash: First a token is issued. The dates, amount in words and figures, branch drawn upon and signatures on the drafts are checked. A stamp is affixed on the face of the draft. Particulars are recorded. The draft is sent towards the officer in-charge for cancellation, after cancellation its dent back for payment. In case of any irregularity in the draft an advice letter is sent to obtain the confirmation of the branch.

Payment in clearing Collecting bank’s crossing, stamp and discharge are checked. Other procedures are similar with the payment is cash.

Telegraphic Transfer: In telegraphic transfer the issuing branch sends a telegraphic message of the branch at the other end to pay a certain amount of money to named payee’s account maintained with the drawee branch.

Issue of a Telegraphic Transfer: Against cash:


The client is asked to complete form which is also treated as credit voucher for head office account branch concerned. A credit voucher is prepared for telegrams charges. Test of telegram is prepared and handed over to the in charge. The test is then checked, coded and tested by the in-charge. The message is typed on form in duplicate, the test in then signed by the in-charge and also by the manager. Original telegram and the confirmation are sent to the dispatch section.

Against Cheque: Commission charges are calculated and inserted. Client is advice to draw cheques, favoring the branch and deposit the same to the receiving cashier. Cashier then receives cheque and cent it to the officer in charge for passing and cancellation, the client is asked to fill up the application form, particulars are recorded, ATT number is written in the voucher and the voucher is then signed by the officer in charge. After that similar procedure is followed like the TT against cash.

Against letter of instruction At first, the letter is sent to deposit department for verification of signature. After that the procedures are same as in the TT against cash.

Payment of T.T: Telegram is detected and test verified by the in charge and the manager. If the test does not match a telegram is sent to the concerned branch asking them to repeat the message with correct test. If the test marches, a stamp is fixed on the telegram and signed by the officer.

Advice to payee: When TT advice is received by the paying branch from the issuing branch, the advice is recorded. Then the officer in charge signs it, after the sign of the in charge, the manager signs it. Lastly, the receipt is sent of the payee.

Payment Order: Pay order is an instrument, which is issued from a certain branch of a bank and must be encased from the same branch. It is like the cash but not exactly cash, one, who is maintaining the account with UBL, can purchase a pay order. it is used for remittance purpose within the clearing area covered by the branch.

Issuing Procedure: Against Cash: At first, the client is asked to complete a form. This is treated as credit voucher. Commission is charge and a voucher is prepared crediting Income Account Commission. After receiving the voucher from the cash section duly signed by the in charge, the pay order slip is prepared according to the voucher. The number of the officer in-charge checks it and signs. After his/her sign another sign is taken form an officer as second signature.


Against Cheque: The cheqe is passed. After that the procedures are same the PO against cash.

Against Letter of Instruction: The letter is sent to the deposit section for verification of signatures. Other procedures are same as the PO against cash.

Payment of Pay Order: When a client submits a PO for payment, at first it is authenticated by comparing its particular with the records. If it matches then a seal is given. After that the records and the PO is given to the officer to verify it. If the officer finds that its OK then he/she signs it and it to the cash section for payment.

4.2.4 Clearing: When a customer of UBL presents an instrument drawn on other bank for collection, the instrument is collected through clearing house of Bangladesh Bank. Every day two houses are arranged in Bangladesh Bank. One in the evening and another in the morning. The evening house is known as return house. Everyday the instruments that are drawn go to the officer of the clearing section. He enters bank name, branch name, number and the amount through a software named “Nikash22” in the main schedule of banks. Then the officer makes a copy of it and goes to the clearing house of Bangladesh Bank. Bangladesh Bank official take the copy. Then they set off the claims of UBL on other banks.

4.3 Loan In case of loan, the banker advances a lump sum for a certain period at an agrees rate of interest. The interest is charged for the amount the client withdraws from his/her account. The banker considers the following 5C’s before sanctioning the loan. • • • • •

Character: The most valuable asset of a person which is based on the integrity and reliability of the borrower. Capacity: This indicates the borrower’s ability to employ the funds profitability and repay the advance. Capital: It refers to the borrower’s own funds invested in the business. Collateral: It indicates the security offered by the borrower. Condition: It refers to external factors that are current business situation of the country.

Advance department of Moghbazar branch deals with the following types of loans. 1) Personal Credit Scheme 2) Transport Loans


3) 4) 5) 6)

Loan (General) House Building Loan House Building Loan Staff Car Loan

Required Information for Loan Sanction: Prior to loan sanction, investigation should be made about the person’s business, trade experience, dealings, assets and liabilities etc. this information should be taken from various sources. His/her account statement with others banks should also be included is this investigation, financial statements and income tax returns should be checked. Lastly, personal interview should be taken. So, before sanctioning a loan a banker should consider the following points: • Loan Application • Trade License, Partnership Deed, Memorandum of Association. • Market Report • Study of Accounts • Financial Statement • Personal Interview • Other Bank’s confidential opinion • CIB report of Bangladesh Bank For sending proposals to the Head office the following documents are required: • Loan application • Photograph of the borrower • Declaration of the borrower • Credit report on the borrower, which should be prepared by the branch • Limit sanction advice • Statement of stock • Documents—memorandum of deposit of title deed. - Mutation Certificate - Up to date pay receipt - Legal opinion - Valuation certificate of the property

Different types of loans are discussed below: Personal Credit Scheme: It is a personnel facility provided to the stalls of the Moghbazar branch. These loans are provided for buying necessary householder items. At first a staff applies for loan in a prescribed form. He / she affixes the statement of his /her savings the statement of his/her savings account and quotation of the good from three sellers of that good. After receiving the application the authorized officer verify it. He / she prepared a credit proposal and sends it to the Credit Division of Head Office. The credit division appraises the proposal on the basis of the balances in the account, the designation of the employee. If credit division id satisfied it fixes the margin, amount of loan, mode of payment, rate of interest and instruct for obtaining


other necessary documents from the staff. Credit division prepares a sanction letter mentioning all those information, after getting the letter the advance department informs the staff about that. A pay order is prepared in favor of the seller with the amount of loan and margin provided by the staff. The staff handover the pay order to the seller and gets his/her goods. The goods are hypothetic to the bank. Loans against Transport: These types of loan are usually provided to the client who wants to start transport business, or need a transport for carrying goods. The client brings quotation from three sellers of the vehicle. License of the vehicle is made in joint name of the banker and the client. Payment is made directly to the seller through a pay order. At the payment of the loan the client becomes the only owner of the vehicle. Loan The purpose of this type of loan is not specific. It can be sanctioned against any kind of security. Securities can be BSB, PSP.Share certificate, WEDB, FDR etc. Here the money is directly transferred to the clients account. Staff Car Loan: This is a personal facility provided to the higher officials of the bank. Officials of the post of A.G.M. and above can get this loan, the car is licensed in the name of the bank and staff jointly. The bank makes payment of the installment of the loan from its own fund. When the loan is fully recovered, the staff becomes the owner of the car. House Building Loan: This type of loan is provided to the staff for building their own house; the staff must have a land to make the house. The land and the building is mortgaged to the bank. The loan is realized from the monthly salary of the staff. At the dime of sanctioning the loan the monthly salary of the staff, his/her designation, balance of his/her account etc are taken into account. House Building Loan: This type of loan is provided to the clients of the bank to build house. Registered mortgage of the land and building is taken from the client

CHAPTER: FIVE

Recommendations and Conclusion

Recommendation In this modern world well decoration are obligatory for all banking sector and in this situation with out On line system we can not think Banking sector .On the other hand skilled employ and a won canten are must needed for any branch of Bank .This type of also some problem are in hare . Those suggestions given in below.


As per earnest observation some suggestion for the important of the situation are given below: • To attract more clients UBL has to create a marketing strategy, which will increase the total exporter-import business. • Effective and efficient initiatives are necessary to recover the default loans. • Attractive incentives package for the exporter will help to increase the exporter and accordingly if well diminish the balance of payment gap of UBL. • Long-term training very much required for the foreign exchange official. • Places, Firstly it is registered on the supplementary sheet, then it come for computer posting and lastly it comes to the section in charge for verification of the signature and for cancellation, after that it goes to the cash payment officer for final payment, for this system, the client has to frequently enquire that whether his/her check has been passed for payment or not, also it takes their valuable time, so. UBL needs to change this system and move on to a better Cheque passing system. • Due to lack of one stop service, the client of UBL ha to move on from one desk to another. Now in modern banking system, this type of movement is considered as one type of harassment. • The bank should launch new products such as auto teller machine, tele bank etc for betterment of customer services. • Strict supervision must be adopted in case of high-risk borrowers. Time to time visit the project should be done by the bank officials. Conclusion Banking sector being a service of Bangladesh continues to contribution to a great in the economy of Bangladesh, Uttara Bank Ltd. Is one of the leading banking services of the country. I also think that there is bright future waiting for the Uttara Bank Ltd. Another thing I have to mention here that the UBL is going through he oath in which they need to go and as like today it will bring more and welfare oriented activities in the banking sector in the years to come.

Bibliography 1. Annual Report, “Uttara Bank Ltd. 2. Yearly Report, Uttara Bank Ltd. 3. Brochure, “Uttara bank Ltd.”


4. 5. 6. 7.

website: www.uttarabank_bd.com Training sheet, “Uttara Bank Ltd.� Journals, Books related to investment. Public Reference room of the Securities and Exchange Commission for reading and study.


An Analysis of the Activities of General Banking Division and Credit Division of Uttara Bank Limited