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Chapter One

Introduction


1.0 Introduction Bangladesh is a developing country. The financial institutions especially banks have undergone a tremendous change in recent years due to high competition. The banking system today plays a very vital role in economic development. In Bangladesh today financial sector is one of the most establish area. For the aspects of economic development, banking sector must be reform. So it is necessary to form a good economic system. Private Banks are playing an important role compare to the government banks in the country. They always try to expand their business. For this they are offering various products & services to their customer. Internship program is essential for all BBA students because it helps him her acquit with real life situation. Bank is a one of the important institution, so I have selected Uttara Bank Limited, which is one of the leading private commercial banks in Bangladesh. Uttara Bank Limited (UBL) is a private commercial Bank in Bangladesh. Uttara Bank Ltd. is one of the largest and oldest private-sector commercial bank in Bangladesh, with years of experiences. There are 211 branches at home and other more affiliates worldwide create efficient networking. The Head Office is located at Bank’s own 18-storied building at Motijheel, the commercial center of the capital, Dhaka. Private Banks are playing an important role compare to the government banks in the country. For this reason I prepared my internship report on General Banking & Foreign Exchange Activities of Uttara Bank Limited (Local Office) Dhaka.

1.1 Origin of the Report Internship is kind of program which helps a student to have a complete idea and gather experience of full time job experience and also Internship fulfill the partial requirement of Bachelor of Business Administration (BBA) program. Since the banking sector is a prosperous sector, I have chosen ‘Uttara Bank Limited’ for the completion of this internship program. This report mainly focuses on General Banking & Foreign Exchange Activities of Uttara Bank Limited (Local Office), Dhaka.


1.2 Scope of the Study Uttara Bank Limited (UBL) is a private commercial Bank in Bangladesh. Uttara Bank Ltd. is one of the largest and oldest private-sector commercial bank in Bangladesh, with years of experiences. It has 211 branches all over the Bangladesh through which it carries out all its banking activities. This report mainly focuses on General Banking & Foreign Exchange Activities of Uttara Bank Limited. For the purpose of my internship program, I am working in the Uttara Bank Limited (UBL) Local Office, Dhaka and this provides me the way to get myself familiarized with banking environment. I have an opportunity to gather experience by working in different departments of General banking, and Foreign Exchange Department of the Branch.

1.3 Objective of the report The study assign for two objectives. The objectives are: Primary Objective: To fulfill the partial requirement of the internship program as full credit subject of the BBA program. This report is to provide a general description of the initial and present status of Uttara Bank Limited (Local Office Dhaka). Secondary Objectives: The following aspects can be listed as the specific objectives for this practical orientation in Uttara Bank Limited: •

To apply theoretical knowledge in the practical field.

To know about operation procedure of General banking & Foreign Exchange Activities of Uttara Bank Limited.

To identify the services and products of Uttara Bank Limited in respect to other banks.

To know about the Local and Foreign Remittance.

To understand the remittance business policy of UBL with other banks.

To find out the internal and external lacking in the daily operation that would help to Uttara Bank for more progress.


To observe the working environment in commercial bank.

1.4 Methodology: For smooth and accurate study everyone have to follow some rules and regulations. The study impute were collected from two sources. Primary data I have collected primary information be interviewing employees, officers by the process assigned by UBL, observing various organizational procedures, structures, directly communicating with the customers. Primary data were mostly derived from the discussion with the employees and personal experience during Internship period. Primary information is under consideration in the following manner: •

Practical desk work

Face to face conversation with officer

Direct observations

Face to face conversation with client.

Secondary Data I have taken the help of different types of secondary data in my report. The sources of those data can be categorized as follows: Internal Sources •

UBL’s Annual Report

Different department wise operational manual of the bank.

Prior research report

External Sources •

Different books and periodicals related to banking sector

Bangladesh bank report


Related links available in the Internet

1.5 Limitations: Observing and analyzing the broad performance of Uttara bank Ltd. Local office are not that easy. Moreover due to obvious reasons of security of scrutiny and confidentiality, the bank personnel usually don’t want to disclose all the statistical information about their organization. Time is another major limitation’s the duration of the program was three months only and being a temporary member of the organization, it was not possible on my part to notice or express some of the sensitive issues and other aspects. However the some of the limitations I have face while preparing this Report are listed as follows: •

Large-scale research was not possible due to constrains and restrictions posed by the organization.

Part of the organizational structure was written from individual perception and it may vary from person to person.

Unavailability

of

sufficient

written

documents

as

required

making

a

comprehensive study. •

In many cases up-to-date information was not available.

It was difficult to communicate with the customers, as many of them were unable to give me much time for interview.

In bank all employees are too busy. It is tough to have a break from their tight schedule.

Time is also a big constraint for my study. I have to submit a broader deal in a shorter form of outcome.


Chapter Two

Organizational Overview


2.0 History of Uttara Bank ltd UTTARA BANK LTD. had been a nationalized bank in the name of Uttara bank under the Bangladesh Bank (Nationalization) order 1972, formally known as the Eastern Banking Corporation Limited which was started functioning on and from 28.1.1965. Consequent upon the amendment of Bangladesh Bank (Nationalization) order 1972, The Uttara Bank was converted into Uttara Bank Limited as a public limited company in the year 1983. The Uttara Bank Limited was incorporated as a banking company on 29.6.1983 and obtained business commencement certificate on 21.8.1983. The Bank floated its shares in the year 1984. It has 211 branches all over the Bangladesh through which it carries out all its banking activities. The Bank is listed in the Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. as a publicly quoted company for trading of its shares. The bank performs all traditional commercial banking functions. The bank has correspondent relationships with 300 foreign banks/bank offices and exchange houses in 72 countries. With the objective of attracting the Bangladeshi wage earners abroad and the non-resident foreigners to invest in Bangladesh, the bank offered them the opportunity to open non-resident foreign currency deposit accounts and foreign currency current deposit accounts with it. By sides the bank consists of major divisions named 1) Corporate banking, 2) Retail banking, 3) Treasury, 4) Small & Medium Enterprise (SME). At present the bank operating its business by 211 branches. Uttara Bank Limited is the first local commercial bank that providing online banking services to its customers from the very beginning of its starts.

2.1 Vision To be the best private commercial bank in Bangladesh in terms of efficiency, assets competence, asset quality, sound management and profitability having strong liquidity. Uttara Bank will be a unique organization in Bangladesh. It will be a knowledge-based organization where the Uttara Bank professionals will learn continuously from their customers and colleagues worldwide to add value. They will work as a team, stretch themselves, innovate and break barriers to serve customers and create customer loyalty through a value chain of responsive and professional service delivery.


Uttara Bank Ltd. will serve its customers with respect and will work very hard to inspire a strong customer service culture throughout the bank. It will treat its employees with dignity and will build a company of highly qualified professionals who have integrity and believe in the Bank's vision and who are committed to its success.

2.2 Mission The bank has some mission to achieve the organizational goals. Some of them are as follows:•

The bank looks forward with excitement and a commitment to bring greater benefits to customers.

Uttara Bank Limited provides high quality financial services to strengthen the well-being and success of individual, industries and business communities.

Its aim to ensure their competitive advantages by upgrading banking technology and information system.

UBL intends to play more important role in the economic development of Bangladesh and its financial relations with the west of the world by interlinking both modernistic and international operations.

The bank intends to meet the needs of their clients and enhance their profitability by creating corporate market.

The Bank has remained dynamic in its continued efforts to improve & increase core competence & service efficiency by constantly upgrading product quality, service standards, protocol and their effective participation making use of state of the art technology.

The bank creates wealth for the shareholders

2.3 Goal and Objectives of the Organization 2.3.1 Goal of the Organization Uttara Bank will be the absolute market leader in the number of loans given to small and medium sized enterprises through out Bangladesh. It will be a world-class organization in terms of service quality and establishing relationships that help its customers to develop and grow successfully. It will be the Bank of choice both for its employees and its customers, the model bank in this part of the world.


2.3.2 Objectives of the Organization The objectives of Uttara Bank Limited are specific and targeted to its vision and to position itself in the mindset of the people as a bank with difference. The objectives of Uttara Bank Limited are as follows:

• Building a strong customer focus and relationship based on integrity, superior service. • To creating an honest, open and enabling environment • To value and respect people and make decisions based on merit • To strive for profit & sound growth • To value the feet that they are the members of the Uttara Bank family-committed to the creation of employment opportunities across Bangladesh.

• To work as a team to serve the best interest of our owners • To relentless in pursuit of business innovation and improvement • To base recognition and reward on performance • To responsible, trustworthy and law-abiding in all that we do • To mobilize the savings and channeling it out as loan or advance as the company approve. • To establish, maintain, carry on, transact and undertake all kinds of investment and financial business including underwriting, managing and distributing the issue of stocks, debentures, and other securities.

• To finance the international trade both in import and export. • To develop the standard of living of the limited income group by providing Consumer Credit.

• To finance the industry, trade and commerce in both the conventional way and by offering customer friendly credit service.

• To encourage the new entrepreneurs for investment and thus to develop the country's industry sector and contribute to the economic development.


2.4 Number of Branches: 211 (only districts are shown below) Uttara Bank Limited (UBL) is a private commercial Bank in Bangladesh. Uttara Bank Ltd. is one of the largest and oldest private-sector commercial bank in Bangladesh, with years of experiences. It has 211 branches all over the Bangladesh through which it carries out all its banking activities.


2.5 Organ gram of Uttara Bank Limited Head Office


2.6 Organ gram of Uttara Bank Limited Local Office Dhaka

General Manager ↓


Deputy General Manager ↓ Asst. General Manager ↓ Senior Principal Officer ↓ Principal Officer ↓ Senior Officer ↓ Officer Grade -2 ↓ Assistant Officer ↓ Company Secretary

2.7 Product and Service offerings by Uttara bank Limited 2.7.1 Products: Personal Banking Products: a) Personal Loan;


b) Car Loan; c) Vacation Loan; d) Any Purpose Loan; e) Different Deposit Schemes; f) Uttaran Consumer-Credit Scheme; g) Monthly Saving Scheme (MSS); h) Monthly Benefit Scheme (MBS); i) Double Growth Deposit Scheme.

2.7.2 Services: As a financial service institution, UBL provides the following services to its clients: 

Personal Banking

Corporate Banking

Capital market services

SME services

Telephone and Internet Banking services.

Chapter Three


Internship Duties And Responsibilities

3.0 Internship Position and Duties I have joined in Uttara Bank Ltd at Local office Dhaka since from Month 12th May 2011 to 11th August 2011. Three Months is not enough to learn the whole banking work, But I tried hardly to learn banking works. There are various types of important work but I learned some work. In this time it was very important for me where practical experience gathered. Those 3 months of


Internship program I have learned about General banking and Foreign Exchange of Uttara Bank Limited Local Office.

3.1 Mejor Learning Points Account Opening: (12May - 29 June 2011) the relationship between the bank and its customer starts with opening an account. There are different types of accounts considering different customer types and requirements. Savings account, Current account, Short Notice Term Deposit (SND) account, Fixed Deposit Receipt (FDR) account Here I done various types of work, those are given bellow: First Account Opening from fill up with Owner name, Present & permanent address, and Nominees name address and attach with owner two copy present passport size photo and Nominees needed one copy and after complete fill up A/C opening from then by the Second officer help complete the procedure of A/C opening. Under this section I also learn about issuing of cheque book. When all the pages of a check book are finished, the customer needs a new book. The Account opening Desk provides new book to the customer. Fresh checkbook is issued to the account holder only against requisition on the prescribed requisition slip attached with the checkbook issued earlier, after proper verification of the signature of the account holder personally or to his duly authorized representative against proper acknowledgment. Now, Magnetic Read able check book is very popular in online banking system which is now available in our bank. This check are fully printed and issued by Bangladesh Bank.

3.2 Local Remittance : (01 July 2011 - 25 July 2011) Here first I cheeked the on dated previous dated voucher collect from bank officer, then MT receive register book, and head office register book, then open general banking scheduling software from bank Computer, then start scheduling by the way of coding system, here various types of code Code-01 (Bank Draft).Code-03 (Mail Transfer).Code-04 (Telegraphic Transfer).Code-06 [(B.Sc) Collection of


Big Time]. Code-07 [(S.Sc) Collection of Short time].Code-08 (Cash Remittance).Code-09 (Sundries).Code-10 (Head Office Transaction). Code-12 (Foreign Exchange Transaction).

3.3 Foreign Remittance : (26 July2011 - 11August2011) Here first I fill up from of remittance client fill up, and then by the use of officers help then tracking number page download and then write Voucher right way and attach with a National ID photocopy and then entry in the head office registered book, and then give the 2nd officer and then give in cash. Then I going to import section and learn some thing about import. Here I learn how open L/C for import. I also learn about import procedures. Then I was going to export department. Every learning activities of the internship position and duties briefly discussing by chapter Four and chapter Five on General Banking Activities and Foreign Exchange Activities of Uttara Bank Limited Local Office Dhaka.


Chapter Four

General Banking Activities Of Uttara Bank Limited

4.0 General Banking Activities: General banking is the front side banking service department. It provides those customers who come frequently and those customers who come

one time in banking for enjoying ancillary

services. A bank does not produce any tangible product to sell but does offer a variety of


financial services to its customers. There are several types of departments perform in a bank. General banking is one of the most important departments for banking sector. Uttara bank Ltd. Local office Dhaka has all required of general banking and all these section are run by manpower with their high quality banking knowledge. Under General Banking department the following sector are included: •

Account opening department

Local remittance department

Foreign remittance section

Cash department

Collection department

Clearing department

Account section

4.1 Account opening Department: The relationship between a banker and his customer begins with the opening of an account by the former in the name of the latter. Initially all the accounts are opened with a deposit of money by


the customer and hence these accounts are called deposits accounts. Banker solicits deposits from the members of the public belonging to different walks of life, engaged in numerous economic activities and having different financial status. There is one officer performing various functions in this department.

4.1.1 Functions of the Department The following are the main functions performed by Account opening department: a. Accepting of Deposit b. Opening of Account c. Cheque Book issue d.

Transfer of an Account

e.

Closing of Account

a. Accepting of Deposits Deposits are the life-blood of a commercial bank. These deposits are collected through opening of different kinds of accounts. In this branch the various types of deposits are offered to various customers, which are grouped into: 

Demand deposit account.

Time deposit account

Fixed deposit account

Demand deposits account: Demand Deposits can be withdrawn without any prior notice. Uttara bank limited, corporate branch accepts from the public in the following accounts:  Current account.  Savings account.  Short Notice Term Deposit (SND) account.


►Current account (CA): This type of account is opened by both individuals and business concerns. Frequent transactions (deposits as well as withdrawal) are allowed in this type of account. A current a/c holder can draw checks on his account for any amount for any numbers of times in a day as the balance in his account permits. This account provides no interest. The minimum balance to be maintained is Tk. 2000. No new account can be opened with a check ►Savings Account (SB): Individuals for savings purposes open this type of account. Current Interest rate of these accounts is 4.50% per annum. A minimum balance of Tk. 1000 is required to be maintained in a SB account interest on SB account is calculated and accrued monthly and credited to the account half yearly. Interest calculation is made for each month on the basis of the lowest balance at credit of an account in that month. A depositor can withdraw from his SB account not more than twice a week up to an amount not exceeding 25% of the balance in the account. ►Short Notice Term Deposit (SND): The deposits in this account are withdrawal on prior notice varying from 7 to 29 days and 30 days or more. The interest is paid on the balance of the account. Current interest rate is 4.50% per annum. Time Deposit Account: The amount in this account is payable only after stipulated time. The following accounts are under time deposit account:  Fixed Deposits which are repayable after the expiry of fixed period and are negotiable.  Bearer Certificate of Deposits (BCD), which are repayable after expiry of fixed period but are negotiable. These are not renewable. Fixed Deposit Account: These are deposit, which are made with the bank for a fixed period specified in advance. The band need not maintain each reserve against these deposits and therefore, bank gives high rate of interest on such deposits. A FDR is issued to the depositor acknowledging receipt of the sum of


money mentioned therein. It also contains the rate of interest and the date on which the deposit will fall due for payment.

Interest on deposit: Particulars

Rate of Interest

Interest Rate on Deposits: Savings Deposits

4.50%

Special Notice Deposits(STD)

3.25%

Fixed Deposit(Time Deposits) a)

3 (three ) Months

11%

b)

6 (six)Months

11%

c)

1(one) Year

11%

d)

2(two) Years and above

11%

Table 01: Interest rate on deposits

b. Opening an account: It includes the following stages: 

Account opening procedure

Kinds of account holder

Account opening procedure Procedure to open a current account: (personal account) •

Two copy passport size photo of account holder, attested by introducer


One copy passport size photo of nominee attested by the account holder

Introducer must be current account holder

Fill up TP form ( Transaction Profile) by the account holder

KYC form ( Know Your Customer ) fill up by the authorized officer

Procedure to open a saving account: (personal account) •

Two copy passport size photo of account holder, attested by introducer

One copy passport size photo of nominee attested by the account holder

Introducer must be saving account holder

Fill up TP form ( Transaction Profile) by the account holder

KYC form ( Know Your Customer ) fill up by the authorized officer

Procedure to open a current account: (proprietorship account) •

Two copy passport size photo of account holder, attested by introducer

One copy passport size photo of nominee attested by the account holder

Introducer must be current account holder

Fill up TP form ( Transaction Profile) by the account holder

KYC form ( Know Your Customer ) fill up by the authorized officer

Up to date trade license

TIN number of the firm

If the firm operate import and export business they must submit IRC and ERC

Procedure to open a current account: (partnership farm) •

Two copy passport size photo attested by introducer

One copy passport size photo of nominee attested by the account holder

Introducer must be current account holder

Fill up TP form ( Transaction Profile) by the account holder

KYC form ( Know Your Customer ) fill up by the authorized officer

Up to date trade license

TIN number of the firm


If the firm operate import and export business they must submit IRC and ERC

Registered partnership deed

Procedure to open a current account: (Limited company) •

Certificate of incorporation

Certificate of commencement of Business

Memorandum of association

Article of association

Power of attorney

Resolution of the Board of Director s authorizing opening of an account.

Societies/Club/Associations

Other than above mentioned common documents resolution of who will operate the account must be noted.

Figure 01: Flow Chart of Account Opening Procedure

c. Issuance of fresh cheque book: Fresh checkbook is issued to the account holder only against requisition on the prescribed requisition slip attached with the checkbook issued earlier, after proper verification of the


signature of the account holder personally or to his duly authorized representative against proper acknowledgment.

Figure 02: Flow chart of Issuance of fresh cheque book

Issue of Duplicate check book: Duplicate checkbook in lieu of lost one should be issued only when an A/C holder personally approaches the Bank with an application Letter of Indemnity in the prescribed Performa agreeing to assure the Bank for the lost checkbook. Fresh check Book in lieu of lost one should be issued after verification of the signature of the Account holder from the Specimen signature card and on realization of required Excise duty only with prior approval of manager of the branch. Check series number of the new checkbook should be recorded in ledger card signature card as usual. Series number of lost checkbook should be recorded in the stop payment register and caution should be exercised to guard against fraudulent payment.

d. Transfer of an account: The customer submits an application mentioning the name of the branch to which he wants the account to be transferred. His signature cards, advice of new account and all relevant documents are sent to that branch through registered post with acknowledgment the balance standing at credit in customers account is sent to the other branch through Inter Branch Credit Advice (IBCA).


e. Closing of an account: The following circumstances are usually considered in case of closing an account or justifying the stoppage of the operation of an account:  Notice given by the customer himself or if the customer is desirous to close the account.  Death of the customer.  Customer’s insanity and insolvency.  If the branch finds that the account is inoperative for a long period.  If Garnishee Order is issued by the Court of Law on the bank branch. A customer can close out his account at any time by submitting an application to the branch. Upon the request of a customer an account can be closed. After receiving an application from the customer to close an account, the following procedure is followed by a banker. The customer should be asked to draw the final cheque for the amount standing to the credit of his account less the amount of closing and other incidental charges and surrender the unused cheque leaves. The A/C should be debited for the account closing charges etc. and an authorized officer of the Bank should destroy unused cheque leaves. In case of joint account the application for closing the account is to be signed by all the joint holders even if the account is operate by either of them. The last check for withdrawal of the available balance in the account is to be signed by all the joint holders.

4.2 Local remittance Department:


The word remittance means sending of money from one place to another place through post and telegraph. Banks extend this facility to its customer by means of receiving money from one branch of the bank and arranging for payment to another branch within country.

4.2.1 Functions of the Local Remittance Department The following are the main functions performed by the credit department:  Issuing & Payment of Demand Draft.  All related correspondence with other Branches & Banks  Balance of D.D. payable & D.D. Paid with advice  Attached to Sanchaya Patra and Wage Earners Development Bonds.  Payment of Incoming TT.  Issuing, encashment of Pay Order and maintenance of record and proof sheet.  All related statements & correspondences with Bangladesh Bank & other Branches.  Issuing of Outgoing TT.  Issuance of Local Drafts.  Issuance of T.T. ICA. IBCA & IBDA.

4.3 Remittance of Fund: Any one of the following methods may make remittance of funds from one place to another. 1) Telegraphic Transfer (T.T) 2) Demand Draft (D.D) 3) Pay order (P/O)

4.3.1 Telegraphic Transfer (T.T):


It is an order from the Issuing branch to the Drawee Bank /Branch for payment of a certain sum of money to the beneficiary. Telex/ Telegram sends the payment instruction and funds are paid to the beneficiary through his account maintained with the drawee branch or through a pay order if no a/c is maintained with the drawee branch. T.T Issue Process: •

The Applicant fill up the relevant part of the prescribed Application form in triplicate duly signs the same and gives it to the Remittance Department.

Remittance Department will fill up the commission part meant for Bank's use and request the Applicant to deposit necessary cash or check at the Teller's Counter.

The Teller after processing the Application form, Cash or check will validate the Application form .The first copy is treated as Debit Ticket while the second copy is treated as Credit Ticket and sent to Remittance Department for further processing. The third copy is handed over to the applicant as customer’s copy.

Remittance Department will prepare the Telex/Telegram in appropriate form, sign it and send it to the telex Operator/Dispatch Department for transmission of the message.

Remittance Department will prepare the necessary advice

Debit Advice is sent to the client if client’s a/c is debited for the amount of T.T

Debit ticket is used to debit the client's account if necessary.

T.T Confirmation Advice is sent to the Drawee Branch.

Credit Ticket (2nd copy of the Application Form) is used to credit the UBL General Accounts.

Accounting Treatment:


For telegraphic transfer, UBL gives the following entriesCash /client's A/C

Dr.

UBL General A/C

Cr.

Communication

Cr.

Commission

Cr.

Payment of T. T: On receipt of T.T payment Instructions the following entries are passed by the Drawee branch if the T.T is found to be correct on verification of Test Number. i. UBL General A/c Remittance Awaiting Disposal- T.T Payable A/c

Dr. Cr.

ii. Remittances Awaiting Disposal -T.T Payable A/c Dr. Client's Account /P.O. A/C.

Cr.

In case the beneficiary does not maintain any A/C with the Drawee branch a P.O is issued in favor of the payee and sent to his banker/local address as the case may be. Every branch maintains a prescribed T.T. Payable Register. All the particulars of T.Ts are to be properly recorded in this Register duly authenticated. A separate type of T.T confirmatory advice is sent to the Drawee branch on the same day. On receipt of the T.T Confirmatory advice/ confirmation copy of Telegram from the Issuing branch, the particulars of the T.T are verified with reference to particulars already recorded in the T.T payable Register.

4.3.2 Demand Draft (D.D): Sometimes customers use demand draft for the transfer of money from one place to another. For getting a demand draft customer has to fill up an application form. The form contains date, name, amount and address and signature of the applicant, cheque number (if cheque is given for issuing the DD), draft number, name of the payee.

Process of Issuing a Demand Draft:


Get the Application form properly filled up and signed by the applicant.

Complete the lower portion of the Application Form meant for Bank's use.

Calculate the total Taka amount payable including Bank's commission /charges etc.

If a cheque is presented for the payment of the D.D officer should get the check duly passed for payment by the competent authority and record the particulars of D.D on the back of the cheque.

If the purchaser desires his account with the branch to be debited for the amount of D.D the officer should get the A/C. holder’s signature verified properly, from signature card on record of the branch and debit client's a/c for the total amount including commission/ charges etc.

If cash deposit is desired, request the purchaser to deposit the money at the Teller’s counter.

The Teller, after processing the Application Form, Cash or Cheque, will validate the Application form.

The first copy of the Application form is treated as Debit Ticket while the second copy is treated as Credit Ticket and sent to Remittance Department for further processing. The third copy is handed over to the Applicant as customer's copy.

Each branch maintains a running control serial number of their own for issuance of DD. on each Drawee branch. This control serial number should be introduced at the beginning of each year, which will continue till the end of the year.

D.D Issue Register: The Remittance Department maintains prescribed D.D Issue Register. All the required particulars of all D. Ds issued should be entered in that Register duly authenticated. Separate folios are opened for each Drawee Branch. While issuing local Drafts of TK.50, 000/- and above, branches shall put a test number in RED INK on the upper portion of the drafts so that the Drawee branch can immediately make payment of the D.D on presentation after getting the Test agreed, if otherwise found in order.


Issue of Duplicate Draft: Duplicate D.D should not normally be issued unless thoroughly satisfactory evidence is produced regarding loss of a draft. If the D.D is reported lost/stolen, a duplicate draft may be issued by the Issuing branch on receipt of a written request from the purchase. Cancellation of Demand Draft (DD): The following procedure should be followed for cancellation of a D.D: •

The purchase should submit a written request for cancellation of the D.D attaching therewith the original D.D.

The signature of the purchase will have to be verified from the original application form on record.

Manager /Sub -Manager's prior permission is to be obtained before refunding the amount on cancellation.

Prescribed cancellation charge is to be recovered from the applicant and only the amount of the draft less cancellation charge should be refunded. Commission/Postage etc. charge recovered for issuing the D.D should not be refunded.

The D.D should be affixed with a stamp Cancelled under proper authentication and the authorized officer's signature on the D.D should also be cancelled with Red in but in no case should be torn. The cancelled D.D should then be kept with the relevant Ticket.

The original entries are to be reversed giving proper narration. An IBDA for the cancelled D.D should be issued on the Drawee branch.

Cancellation of the D.D should also be recorded in the D.D Issue Register.


Payment of D.D:

Figure 03: Flow Chart of DD Payment

4.3.3 Pay Order (PO): For issuing a pay order the client is to submit an Application to the Remittance Department in the prescribed form (in triplicate) properly filled up and duly signed by applicant. The processing of the pay order Application form, deposit of cash/cheque at the Teller's counter and finally issuing an order etc, are similar to those of processing of D.D. Application. As in case of D.D each branch should use a running control serial number of their own for issuance of a pay order. This control serial number should be introduced at the beginning of each year, which will continue till the end of the year. A fresh number should be introduced at the beginning of the next calendar year and so on. Charges: For issuing each Pay Order commission at the rate prescribed by Head Office is realized from the client and credited to Income A/C as usual.


Refund of Pay Order: The following procedure should be followed for refund of pay order by cancellation: 

The purchase should submit a written request for refund of pay order by cancellation attaching therewith the original pay order.

The signature of the purchaser will have to be verified from the original application form on record.

Manager/ Sub-manager's prior permission is to be obtained before refunding the amount of pay order cancellation.

Prescribed cancellation charge is to be recovered from the applicant and only the amount of the pay order less cancellation charge should be refunded. Commission recorded for issuing the pay order should not be refunded.

 The pay order should be affixed with a stamp ''cancelled'' under proper authentication and the authorized officer's signature of the pay order should also be cancelled with RED ink but in no case should be torn. The cancelled pay order should be kept with the relevant Ticket.  The original entries are to be reversed with proper narrations  Cancellation of the pay Order should also be recorded in the pay order Issue Register.

Transaction Types Collection of Cheque • Up to TK. 25,000 @ .15%, Minimum TK. 10. • Above Tk.25, 000- 1, 00,000, @ .15% Minimum Tk.50. • Above 1, 00,000-5, 00,000 @ .10%, Minimum Tk.150. • Above 5,00,000 @ .05%, Minimum Tk.600-Maximum 1,200

Bank Charge For Issuing DD


• @ .15% Minimum Tk. 25. Cancellation of DD • Up to 1000--------------------------Tk.25. • Above 1000-------------------------Tk.40. Payment Order • Up to Tk. 1000----------------------Tk.10. • 1,000-1, 00,000 ---------------------Tk.25. • 1, 00,000-5, 00,000-----------------Tk.50. • Above Tk.5, 00,000----------------Tk.100. Cancellation of Pay order • Up to Tk. 500-----------------------Tk.10. • Above Tk. 500----------------------Tk.25.

Name of Transaction

Transaction Code

Bank Draft

1

Mail Transfer(M.T)

3

T.T

4

B.Cs

6

S.Cs

7

Cash Remittances

8

Sundries

9

Head Office Transaction

10

Foreign Exchange Transaction

12

Reversing & Cancellation

27


Table 02: Transaction Name & Code

Chapter Five

Foreign Exchange Activities Of


Uttara Bank Limited

5.1 Foreign Exchange Foreign Exchange Department is a very important part of Uttara Bank Ltd. Foreign Exchange mainly Deals with Import, Export, & Foreign remittance. Foreign exchange is an International Department of the bank, It facilities international trade through its various modes of service. It is a bridge between Importers and Exporters. If the branch is an Authorized Dealer in foreign Exchange Market it can remit Foreign Exchange local country to foreign country. Bank Branch should be Authorized dealer, with due approval from Bangladesh Bank to run foreign Exchange transaction. According to Bangladesh Bank Law the payment must be receipt within 120 days. This department is playing an important role in enhancing Export earning, which aids Economic Growth and intern it helps for the economic development. On the other hand, it also helps meet those goods and service which are more demandable and not adequate in our country.

5.2 Foreign Exchange Department Foreign Exchange Department are Divided in three sections those are given bellow under:

Foreign Exchange Department

Export

Import

Remittance


Figure 04: Classification of Foreign Exchange Department

5.3 Functions of Foreign Exchange Department UBL. 5.3.1 Import:

• Opening of Letter of Credit (L/C) • Advance bills. • Import loan and guarantees. 5.3.2 Export:

• Pre-shipment advances • Purchase of foreign bills • Negotiating of foreign bills • Export guarantees • Advising/confirming letters-letter of credit • Advance for deferred payments exports • Advance against bill for collection. 5.3.3 Remittance:

• Issue of DD, MT, TT etc.


• Payment of DD, MT, TT etc. • Issue and enhancement of traveler’s cheque. • Sale and enhancement of foreign currency notes. 5.4 Documentary Credit/ Letter of Credit (L/C) Documentary Credit or Letter of Credit is nothing but a letter of assurance of payment. This assurance of payment is made by the bank. It is an arrangement under which the bank the request of the buyer undertakes to make payment to the seller provided specified documents are submitted. Documentary Credit is an arrangement whereby a bank (issuing bank) acting at the request and on the instruction of a customer (the applicant) or on its own behalf undertakes to make payment to or to the order of a third party (the beneficiary) or to accept and pay bills of exchange (draft) drawn by the beneficiary, or authorize another bank to negotiate against stipulated documents provided the terms and conditions to the credit are compiled. Thus, Documentary Credits are similar to bank guarantees. In popular language, they are known as Letters of credit (L/Cs). Bank guarantees are however, issued to cover situation of nonperformance whereas documentary credits are issued on behalf of the buyer to cover situation of performance, i.e., the issuing bank agrees to make payment to the beneficiary once he surrenders the requisite complying documents. Thus, Documentary Credit offers a unique and universally used method of achieving a commercially acceptable arrangement by providing for payment to be made against complying documents that represent the goods and making possible the transfer of those goods. The Uniform Customs and Practices for Documentary Credit (UCPDC) published by International Chamber of Commerce (1993) revision, publication no. 500 define Documentary Credit.

Sales Contract The Buyer

The Seller

The Buyer Reimbursing Agreement The Issuing Bank

The Issuing Bank The Beneficiary


Figure 05: Documentary Credit Agreement

5.4.1 Legal Framework Foreign Exchange Business is a crucial and complex business all over the world. Fraud and forgery may arise in every sphere of this business. To overcome those misshapenning and to settle international disputes, a legal framework is a must. An apex body is doing these functions named International Chambers of Commerce (ICC). The publication made by the ICC is treated as compulsory law for each and every country. Among many publications, publications no. 500 is related to L/C opening and such other purposes.

5.4.2 Forms of Documentary Credit 1) REVOCABLE CREDIT A revocable credit is one where the issuing banks at liberty to revoke i.e. cancels the credit at any time. According to UCPDC, a revocable credit may amend or cancelled by the issuing bank at any moment and without prior notice to the beneficiary before shipment of consignment against the L/C. 2) IRREVOCABLE CREDIT An irrevocable L/C is one, which cannot be revoked, amended or modified by the bank with the concurrence of the interested parties.

5.4.3 Documents Used in L/C Operation The most commonly used documents in foreign exchange are – 1

Bill of Exchange

2

Bill of Lading

3

Commercial invoice

4

Certificate of origin

5

Inspection certificate

6

Packing list

7

Insurance document


8

Pro Forma Invoice (PI)/Indent.

Parties Involved in the Process of Letter of Credit •

Importer (Buyer)/Applicant

The Issuing Bank (Opening Bank)

The Advising Bank/Notifying Bank

Exporter/Seller (Beneficiary)

Confirming Bank

Negotiating Bank

The Paying/Reimbursing/Accepting/Remitting Bank

Bank as a party of Documentary Credit Parties to the documentary credit are an issuing bank, an advising bank, a confirming bank, a reimbursing bank or a negotiating bank.

Issuing Bank (Bangladesh)

Advising Bank (Singapor e)

Confirming Bank

Reimbursing Bank

Negotiating Bank

Figure 06: Trend of Foreign Exchange Department


5.5 Import Documents need in credit operation: Wide-ranging changes and expansion in the world trade owing to the process of evaluation in the globalization and free market economy have facilitated free flow of goods, which result in world wide trade competition. Import is foreign goods and services purchased by consumers, firms and Govt. in Bangladesh.

5.5.1 Import Procedure: Import in to Bangladesh made by two ways. 1. Opening L/C 2. Without opening L/C 1. Opening L/C Import by way of opening L/C requires fulfilling the following criteria in case of private sector Importers: •

Must be a customer account holder

Importer having valid IRC (Issued by CCI & E)

Valid Trade License

Valid Membership Certificate of Local Chamber of Commerce or related Association.

Income Tax clearance Certificate/Declaration of submission of Returns & TIC Certificate.

VAT Registration Certificate.

L/C Application

Valid Indent/ Proforma Invoice/ Contract etc.

Insurance Cover Note.

LCAF duly sealed & signed.

2. Without opening L/C Import in to without opening L/C made in the following case against LCAF. •

Books, Journal, Magazines, Periodicals against sight Draft or usance Bills.


Any important item by making payment from Bangladesh to the tune of maximum $25000 in a year.

The item allowed by the Aid/ Loan/ Grant.

Import of early perishable food items valuing $10,000 to $15,000 per consignment through Teknaf land port and $5000 to $7500 per consignment for import through other land ports. Capital Machineries and industrial raw materials without any value limit. In these cases LCAF must be registered with Bangladesh Bank.

Import from Myanmar to $5000 per single consignment, here the condition of one

year

is not applicable. •

International Chemical reference by the Registered Allopathic Industrial Unit with the approval of Director, Drug Administration.

5.6 Export Documents need in credit operation: In order to creation of wealth, any country depends on the expansion of production and increasing participation in international trade. By increasing production in the export sector we can improve the employment level of such highly populated country like Bangladesh. Readymade textile garments (both knitted and woven), jute, jute made products, frozen shrimps, tea are the main goods that Bangladeshi exporters export to foreign countries. Garments sector is the largest sector that exports the lion share of the country’s export. Bangladesh exports most of its readymade garments products to U.S.A. and European Community (EC) countries. Bangladesh exports about 40% of its readymade garments products to U.S.A. most of the exporters who export through UBL are readymade garments. They open export L/C here to export their goods, which they open against the import L/Cs opened by their foreign importers. Export L/C operation is just reverse of the import L/C operation. For exporting goods by the local exporter, bank may act as advising banks and collecting bank (negotiable bank) for the exporter. UBL also has the capacity to support the exporters of businessman’s in Bangladesh.

5.6.1 Export Procedure: The imports and exports trade in our country is regulated by the Imports and Exports control Act, 1950. If any importer or exporter contravenes any of the Act or any order made under this Act is punishable with imprisonment for a term, which may extend to one year or with fine or both.


There are a number of formalities, which an exporter has to fulfill before and after shipment of goods. These formalities or procedures are enumerated as follows: 1. Obtaining exporter Regirstration Certificate (ERC): No exporter is allowed to any commodity permissible for export from Bangladesh unless he is registered with Chief Controller of Imports And Exports (CC I & E) and holds valid Export Registration Certificate (ERC). After applying to the CC I & E in the prescribed from along with the necessary papers, concerned offices of the CC I & E issues ERC. Once registered, exporters are to make renewal of ERC every year. 2. Securing the Order: After getting the ERC the exporter may proceed to secure the export order. He/ She can do this by containing the buyers directly or through agent.

3. Obtaining EXP: After having the registration, the exporter applies to UBL with the trade license, ERC & the certificate from the concerned government organization to get EXP. If the bank is satisfied, then EXP is issued to the exporter. 4. Signing of the contract: After communicating with buyer the exporter has to get contracted for exporting exportable items from Bangladesh detailing commodity, quantity, price, shipment, insurance and mark, inspection, arbitration etc. 5. Receiving the Letter of credit: After getting contract for sale, exporter should ask the buyer for L/C clearly stating terms and conditions of export and payment. After receiving L/C, the following points are to be looked for: •

The terms of the L/C are in conformity with those of the contract.

The L/C is an irrevocable one, preferably confirmed by the advising bank.

The L/C allows sufficient time for shipment and a reasonable time for registration.

If the exporter wants the L/C to be transferable, divisible and advisable, he should ensure those stipulations which are specially mentioned in the L/C.

6. Procuring the materials:


After making the deal and on having the L/C opened in his favor the next step for the exporter is to set about the task of procuring or manufacturing the contracted merchandise. 7. Endorsements on EXP: Before the export forms are lodged by the exporters with the customers, they should get all the copies endorsed by UBL. Before shipment, exporter submits EXP. From with commercial invoice. Then UBL officer check it properly, if satisfied certified the EXP. Without it exporter cannot make shipment. The customer must declare all exports good on the EXP issued by the authorized dealers. 8. Shipment of Goods: Exporter makes shipment according to terms and condition of L/C. •

EXP (It must be certified by the bank then by the custom authority).

Photocopy of the registration Certificate.

Photocopy of Contract

Photocopy of L/C

Railway Receipt, Barge Receipt or Truck Receipt.

Shipping Instruction.

Insurance Policy.

9. Presentation of Export document for negotiation: After shipment, exporter submits the documents to UBL for negotiation are bill of exchange or draft, Bill of lading, Invoice, Insurance Policy, Certificate of origin, Inspection Certificate, Consular Invoice, Packing List, Quality Control Certificate etc. 10. Examination of Document: As the negotiating bank is giving the value before repatriation of the export proceeds it is advisable to analyze and examine each and every document with great care whether any discrepancy is observed in the documents. The bankers are to ascertain that the documents are strictly as per the terms of L/C before negotiation of the export bill. Bank officers assigned for examining the export documents may use a checklist for their convenience. 11. Negotiation of export documents:


Negotiation of stands for payment of value to the exporter against the documents stipulated in the L/C. If documents are in order, UBL purchase the same of the basis of banker customer relationship. This is known as Foreign Documentary Bill Purchase. If the bank is not satisfied with the documents submitted to UBL, gives the exporter reasonable time to remove the discrepancies or sends the documents of L/C opening bank for collection. This is known as Foreign Documentary Bill for Collection.

5.7 Foreign Remittance Uttara Bank is the Authorized Dealer (AD) to deal in foreign exchange business, as an authorized dealer. Bank must provide some services to their clients regarding foreign exchange and this department provides the service of remitting foreign currency from one country to another country. In the process of providing this remittance service it sells and buys foreign currency, the conversation of one currency into another takes place at an agreed rate of exchange.

Foreign Currency Remitting Procedures: There are two types of remittance. These are: 1. Inward Remittance. 2. Outward Remittance.

1. Inward Remittance: Inward remittance covers purchase of foreign currency in the form of foreign Telegraphic Transfer (T.T), Demand Draft (DD) and Bills & Travelers Cheque, Export Bill etc. sent from abroad favoring a beneficiary in Bangladesh. Purchase of foreign exchange is to be reported to Exchange Control Department of Bangladesh Bank from Letter of Credit (L/C). These are the formal channel of receiving inward remittance. A local Bank also receives indenting commission of local firm also comes under purview of inward remittance.


Figure 07: Modes of Inward Remittance

2. Outward Remittance: Outward remittance covers sales of foreign currency by Authorized Dealer (AD) or formal channel through issuing foreign telegraphic Transfer (T.T), Demand Drafts (D.D), Traveler’s Cheque etc. as well as sell of foreign exchange under L/C and against Import Bills retired. The demonstrate utmost caution to ensure that foreign currencies remitted or released by them are used only for the purpose for which they are released. Most outward remittance is approved by the authorized dealer on behalf of Bangladesh Bank.


Figure 08: Modes of Outward Remittance

Chapter Six


Findings & Analysis

6.1 Import Import Position is (May, 2011 to July, 2011) here we see May 2011 Month Import is $65,000, and June-2011 is decrease in $62,000, and July-2011 is again Increase is more then $120,000 those are given below: Months

Amount in $

May 2011

65,000


June 2011

62,000

July 2011

1,20,000

Table 03: Last three months Incoming Remittance on Import $140,000 $120,000 $100,000 $80,000 In=$

$60,000 $40,000 $20,000 $0

May-11

Jun-11

Jul-11

Figure 09: Last Three Months Incoming Remittance in Uttara Bank, Import

Here we see the Upward is last three months, so we can say that this situation is better for the Uttara Bank Ltd, Local Office.

6.2 Export Export position is last three months (May, 2011 to July,2011) here we see May 2011 Export is $15,500, and June-2011 is increase in $23,500, and July-2011 is again Increase is more then $24,000 those are given below: Months

Amount in $

May 2011

15,500


June 2011

23,500

July 2011

24,000

Table 04: Last three months Incoming Remittance on Export $25,000.00 $20,000.00 $15,000.00 In=$

$10,000.00 $5,000.00 $0.00 May-2011

Jun-11

Jul-11

Figure 10: Last Three Months Incoming Remittance in Uttara Bank Ltd, Export

Here we see the Upward is last three months, so we can say that this situation is better for the Uttara Bank Ltd, Local Office.

6.3 Foreign Remittance From (May-2011 to July-2011) here Head Office Mail is Maximum Remittance is come to our country and it is 95 Remittance, and X-press money is 17, Money Gram- 48, IME is 6, Placid is 15, Trans fast 5, ARY speed Remit 1.


1%

Foregin Remittance

4% 5%

1% X-press Money (17)

3%

Head office Mail(95) Money Gram(48) IME(6)

28%

58%

Placid(15) Trans Fast(5) ARY Speed Remitt

Figure 11: Last Three Months Incoming Remittance in UBL, Local Office

6.4 Trend analysis of Import business in UBL. Local Office The important value of import stood at Tk.29614.5 million in 2010 compared with the volume of Tk.29129.3 million in 2009.Tk 31146.9 in 2008, Tk 25407.9 in 2007, Tk 22603.7 in the year of 2006.

Year

Import Business (amount in million)

2006

tk. 22603.7

2007

tk. 25407.9

2008

tk. 31146.9

2009

tk. 29129.3

2010

tk. 29614.5


Table 05: Last Five years Import Business

In Amount Taka

Import Business 35000 30000 25000 20000 15000 10000 5000 0

year Total Import

2006

2007

2008

2009

2010

Year

Source Annual Report 2010 Figure 12: Trend of Import business last Five years from 2006 to 2010

The analysis of import business in uttara bank ltd. Local office Dhaka in last five years we see the above graph, the total import business is gradually increased in year 2010 at Tk. 29614.5 million comparison with the pervious year 2009 at Tk. 29129.3 million. Where 2009 the export business was decreased then the 2008. In 2008 carry on the highest performance of import business in last five years at Tk. 31146.9 million.

6.5 Trend analysis of Export business in UBL. Local Office Export however, Tk.12986.7 million in the year 2010. Tk. 15096.9 million in 2009. Tk. 15030.6 million in 2008, Tk. 14784.5 million in 2007, Tk 18133.9 million in the year of 2006.


Table 06: Last Five years Export Business

Year

Export Business (amount in million)

2006

tk. 18133.9

2007

tk. 14784.5

2008

tk. 15030.6

2009

tk. 15096.9

2010

tk. 12986.7


In Amount Taka

Export Business 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0

year Total Export

2006

2007

2008

2009

2010

Year

Source: Annual Report 2010 Figure 13: Trend of Export business last Five years from 2006 to 2010 The analysis of export business in UBL, Local office Dhaka in last five years we see the above graph, the total export business is declined in year 2010 at Tk. 12986.7 million comparisons with the pervious year 2009 at Tk. 15096.9 million. Where 2009 the export business was increased then the 2007 and 2008. In last five years The highest level of export business was Tk. 18133.9 million in 2006.

6.6 Trend analysis of Foreign Remittance Business in UBL. In foreign Remittance in UBL has last 5 years 2006 to 2010 year is. Tk 28728.1 in 2010, Tk 29575.3 in 2009, Tk 36073.2 in 2008, Tk 44635.30 in 2007, Tk. 43200.7 in 2006. Year

Foreign Remittance

2006

43200.7

2007

44635.3

2008

36073.2

2009

29575.3

2010

28728.1


Table 07: Last five years Foreign Remittance Business Foreign Remittance 50000 40000 30000 Foreign Remittance 20000 10000 0

2006

2007

2008

43201 44635 36073 Foreign Remittance

2009

2010

29575 28728

Source: Annual Report 2010 Figure 14: Trend Analysis of Foreign Remittance Business last Five years from 2006 to 2010

Uttara Bank ltd. has been able to remit foreign currency in 2010 through its foreign correspondents and exchange houses. This bank has drawing agreement with the Banks and exchange companies of the different important countries of the world. The volume of foreign remittance in the year 2010 stood at Tk. 28728 million as compared to Tk.29575 million in the pervious year 2009. Hear we can see the total earning foreign remittance in 2010 is decrease then the year 2009.

6.7 Composition of Foreign Exchange Business of 2010


Remittance 19%

Import 50% Export 31%

Import

Export

Remittance

Figure 15: Foreign Exchange Business Uttara Bank ltd.

Hear we can see that the huge percentage of import business is related to the Foreign Exchange operation of UBL Local office Dhaka. The above graph shows that the total foreign exchange business import business is covered the 50%, export covers 31% and foreign remittance covers 19% out of 100% foreign exchange business.

SWOT Analysis: SWOT analysis is an important tool for evaluating the company's Strengths, Weaknesses, Opportunities and Threats. It helps the organization to identify how to evaluate its performance and scan the macro environment, which in turn would help organization to navigate in the turbulent ocean of competition.

1. Strengths: 

Company reputation: Uttara bank has already established a favorable reputation in the banking industry of the country particularly among the new comers. Within a period of 25 years, UBL has already established a firm footing in the banking sector having tremendous growth in the profits and deposits. All these have leaded them to earn a reputation in the banking field.



Top Management: The top management of the bank is also major strength for the UBL has contributed heavily towards the growth and development of the bank. The top management officials have all worked in reputed banks and their years of banking experience, skills, expertise will continue to contribute towards further expansion of the


bank. At UBL, the top management is the driving force and the think tank of the organization where policies are grafted and often cascaded down. 

Impressive branches: This creates a positive image in the minds of the potential customers and many people get attracted to the bank. This is also an indirect marketing campaign for the bank for attracting customers. 211 branches of the bank are impressive and are compatible to foreign banks.

Interactive corporate culture: UBL has an interactive corporate culture. Unlike other local organization, UBL's work environment is very friendly, interactive and informal; there are no hidden barriers or boundaries while interacting among the superior or the subordinate. The environment is also lively and since the nature of the banking job itself is monotonous and routine, UBL's likely work environment boosts up the spirit and motivation of the employees.

Team work at mid level and lower level: At UBL's mid level and lower level management, there are often team works. Many jobs are performed in groups of two or three in order to reduce the burden of the workload and enhance the process of completion of the job. People are eager to help each other and people in general are devoted to work.

2. Weaknesses: 

Advertising and promotion of SME loan: This is a major set back for UBL and one of its weakest areas. UBL's adverting and promotional activities are satisfactory but it SME Ban is not advertised well. It does not expose its SME product to general public and are not in lime light. UBL does not have neon sign or any advertisement for SME loan in the city. As a result people are not aware of the existence of this bank.

Low salary package: The salary package for the entry and the mid level management is considerably low. The compensation package for BBL entry level positions is even lower than the contemporary banks. Under the existing low payment structure, it will be very difficult to attract and retain higher educated employees in UBL.

3. Opportunities: 

Diversification: UBL can pursue a diversification strategy in expanding its current line of business. The management can consider options of starting merchant banking or diversify


in to leasing and insurance. By expanding their business portfolio, UBL can reduce their business risk. 

Product line proliferation: In this competitive environment UBL must expand its product line to enhance its sustainable competitive advantage. As a part of its product line proliferation.

ATM: This is the fastest growing modern banking concept. UBL will be introducing ATM with in few months and take preparation for launching ATM. Since UBL is a local bank, they can form an alliance with other up to date banks in launching the ATM, if they take this opportunity UBL will be a fastest bank in the country. UBL take this opportunity very easily because this bank has lot of branches.

4. Threats: 

Multinational banks: The emergence of multinational banks and their rapid expansion poses a potential threat to the new growing private banks. Due to the booming energy sector, more foreign banks are expected to arrive in Bangladesh. Moreover, the already existing foreign bank such as Standard Chartered is now pursuing an aggressive branch expansion strategy. This bank is establishing more branches countrywide and already launched is SME operation. Since the foreign banks have great financial strength, it will pose a threat to local banks.

Upcoming banks: The upcoming private local banks can also pose a threat to the existing private commercial banks like UBL. It is expected that in the next few years more local private banks may emerge. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against an on slaughter of foreign banks.

Contemporary banks: The contemporary banks of UBL such as Jamuna Bank Limited, Islami Bank Bangladesh Limited, Dhaka Bank Limited, City Bank Limited, AB Bank Limited, Prime Bank Limited and Dutch Bangla Bank Limited are its major rivals. Jumana bank and other banks are carrying out aggressive campaign to attract rewarding clients as well as big time depositors.

Default culture: This is a major problem in Bangladesh. As UBL is an old organization the problem of non-performing loans or default loans is very minimum or insignificant.


However, as the bank becomes older this problem arises and the whole community suffers from this chronic diseases. UBL has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem if not elimination.

Chapter Seven

Conclusion & Recommendations


7.1 Recommendations Uttara Bank Ltd. is one of the largest and oldest private-sector commercial bank in Bangladesh, with years of experiences. It has 211 branches all over the Bangladesh through which it carries out all its banking activities. UBL has many positive features and the customers are mostly satisfies with the services offered. In spite of this fact, it has been observed that many customers are not aware of all sort facilities provided by UBL. On the other hand the employees is very much dedicated the work hard for this bank, they are valuable asset for this bank but employees do not get proper facilities like sufficient equipment, manpower and standard salary. But I think they need to immediately focus on their problematic areas. According to my point of view I point out some significant recommendation in their perspective. I believe that if they can take initial step to solve that problem, I hope that they will be able to remove their problem. Here the following recommendations are given to improve the marketing problem of Uttara Bank Limited. •

Uttara Bank Limited should be differentiated their Account Opening section. Now this section consists of opening a new account, cheque receives, issuing new cheque book. When every types of client comes then account opening officer face the problem. He is not able to do every task in time on one hand for this others client are waiting. So UBL


should be differentiate account opening, cheque receives and issuing new cheque book section. •

Now days the banking sector is very competitive. There are almost fifty private banks in our country. To survive in the competitive market, the bank should provide quick and easy services to the customers like.

Recruit the skill and energetic person as an employee who is always ready to provide the service.

Now days, the clients want to withdraw their money from bank by using ATM card. They do not feel interest to withdraw their money by writing cheque. But this bank has no any ATM booth. This bank uses the DBBL ATM booth to provide ATM services. So to attach the customers it’s should establish the ATM booth in the important places of the city.

This bank comparatively oldest bank in the banking sector. Bank offer more product and service but the lacking of marketing and advertising customer or client are not aware for their services. So bank should take some promotional tools and take the help of the electronic media like radio, TV etc.

Use modern tools and techniques and evaluate customers’ credit needs professionally.

UBL is not fully computerized and electronic bank. They are not provided the online facilities to their client. Today UBL take their operations manually. So bank should be go online banking system very soon.

The Management of UBL should conduct more product & services awareness campaign.

To attract more customers of UBL has to create a new marketing strategy which will increase overall brand image.

Credit card facilities should be given to customer as early as possible and provide a normal term and condition.

UBL could not provide any Boucher for the internee student. For this we are facing more problems by the preparing internee report. So the bank must be create department wise Boucher and provide that internship student and help to prepare their internship report.


7.2 Conclusion: Uttara Bank Limited is one of the oldest and leading commercial Bank in Bangladesh, and Local office is one of the big branches of Uttara Bank Limited. UBL passed long time for their banking life almost forty years. In those years they struggle with the economic environment, social and political environment. So they have a huge experience about Bangladesh economic, social and political environment. The performance of a Banks today competitive business is important. Just few years ago the number of bank was very small. So the competition was not a strong as its today. Things have changed with the emergence of many new banks now the Customers have option to take the one that the best so the current banking business situation is simply highly competitive. The performance of Uttara Bank Limited during the Last five years has proved that with strong desire and will power one achieve whatever target he may have. Almost all the leading banks in our country have various Extra facilities in offer for the customers in comparison with other Banks but UBL has succeed in achieving more customer than other competitors. This has been possible only because of strong customer relation and excellent customer service.


The UBL Local Office employee’s are centralized. It’s a big branch in Dhaka city, so there is more work pressure then the other branch. This branch operate different department. Uttara Bank Limited, Local Office the General Banking Activities are Account Opening, Cash Section, and Local Remittance ( Pay Order, Telegraphic Transfer, Money Transfer, Demand Draft ) etc. all the department is more important for a branch. There are a common procedures or terms for implement a bank tasks. Every banking tasks such as cheqes receives, carefully write out the money transfer, telegraphic transfer & send T.T in due time in date, IBDA, IBCA, Pay Order, Demand Draft, advice number, branch code, branch name, payees name, Test no etc. of this branch is doing by the very skilled persons. Uttara Bank Limited, Local Office the Foreign Exchange Activities are Export, Import and Foreign Remittance all department is also important for a bank. Foreign exchange transaction plays a vital role in economic development of a country, especially for a developing country like Bangladesh. Efficient foreign exchange transaction process is adding a new force in the competition among the banks. Uttara Bank Limited is playing a major role in the entire foreign exchange transaction process of Bangladesh. It increases the export and import revenue. For Banks credit is the main source of profit and on the other hand the wrong use of credit would bring disaster not only for the Bank but also for the economy as a whole. The less the amount of loan losses, the more the income from credit operations of the Banks and here lays the success of credit Financing. The objective of credit management is to maximize the performing assets and the minimizing of the none performing assets as well as ensuring the optimal point of loans and advance and their efficient management.


Reference Books 1. Kotler, P; Marketing Management, 11th edition, 2003 Pearson Hall Inc, New Jersey; Page - 42,44 2. Kotler, P. Armstrong, G; Principles of Marketing. 11th edition, 2004 Pearson Education Inc, Singapore; Page- 50 3. K. Malhotra, Naresh; “Marketing Research�, 5th Edition, 2007-2008, Prentice-Hall, New Delhi. 4. Kothari, C R; Research Methodology, 2nd edition 2005 Publisher New Age International. India; Page 10-48.

Websites Name of website

Access Time

Access Date


www.uttarabank-bd.com.

9 pm to 12 am

15,17,18 August & September 6, 8,11, 2011

8pm to12 am

17,21,26 August, 2011

12am to 2am

August 14, 2009

www.bangladeshbank.org.bd.com. www.google.com

Other Document 1. Annual Report, 2008 “Uttara Bank Limited” 2. Annual Report, 2009 “Uttara Bank Limited” 3. Annual Report, 2010 “Uttara Bank Limited” 4. Banking Journal 5. Operational Manual 6. Prior Research Report

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