Documente Academic
Documente Profesional
Documente Cultură
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Project Part
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it has practical application in real life situation. So, I need proper application of my knowledge to
get some benefit from my theoretical knowledge make it more tactful. When I engage myself in
such fields to make proper use of my theoretical knowledge in my practical life situation. Such
theoretical knowledge is obtained from a course of study at only the half way of the subject
matter. Internship implies on other the full application of the methods and procedures implies on
the other full application of the methods and procedures through rich acquire of subject matter
can be forcefully applied in my day-to-day life situation. Such a procedure of practical
application is known as Internship.
In this situation the concept of Syndicate Financing is new concept in Bangladesh. After
successful completion of this study, it can be used to identify the performance of UBL and also
invent new technique, which can be used to prevent a good loan to be a classified loan and these
technique can also be used in other banks to get the same benefit.
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1.6 Research Methodology:
Research Design
Both descriptive and exploratory researches have been selected to analyze this paper. Here the researcher
discussed the credit appraisal procedure of UBL and critically analyze the appraisal procedure with the
standard one. Comparison analysis has also been taken part in this study.
Limitation of time:
It was one of the main constraints that hindered to cover all Aspects of the study.
Lack of Secondary:
The annual brochure was the main secondary sources of information that was not enough to
complete the report and private the reader a clear idea about the bank.
While preparing this report I had an opportunity to gain deep knowledge about the banking
mechanism, especially in the foreign exchange department. I have also come through many
different personalities, who shared their experiences, while conducting the research on Trade
Finance reporting system. The report has also given the readers the opportunity to learn about the
foreign exchange and other banking mechanism, the related regulations, and the obligations for
monitoring. The research that this report has covered would give the central bank the necessary
feedback information regarding their new online trade finance reporting system, which would
help them figure out the problems of the new system for further upgrading. The commercial
banks can also gain from the information by learning about their officials’ troubles regarding
their porting system so that they can come up with a solution to help their employees be more
comfortable and more efficient by making their work easier.
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CHAPTER- 02
5
Overview of the Organization
The prosperity of a country depends on its economic activities. Like any other sphere of modern
socio economic activities, banking is a powerful medium of bringing about socio economic
changes of a developing country. Without adequate banking facility agriculture, commerce and
industry cannot flourish. A suitable developed banking system can provide the necessary boost
for the economic growth of the country. Because banking system is linked with the whole
country.
Uttara bank limited, a private commercial bank, offers a range of mass banking services and
products in Bangladesh. Its deposit products include savings bank accounts, fixed deposit
accounts, short term deposit accounts, current accounts, pension accounts and foreign currency
accounts. The bank’s loan and lease service comprise micro credit, small and medium enterprise
financing, industrial loans, working capital financing, export credit, import credit, bills purchase,
letter of credit, letter of guarantee, lease financing, transport financing, consumers loan schemes
and house building loans. It also offers various remittance services, including remittance of fund
from abroad by Bangladesh.
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2.2 Uttara Bank Limited at a Glance:
Paid up Capital
Tk. 1897.00 million
No. of Directors 13
Number of Branches 207
Managing Director Shamsuddin Ahmed
E-mail uttara@citecho.net,
Web http://www.uttarabank-bd.com
Cable Bankers
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2.3 History of Uttara Bank Limited:
Uttara Bank Limited celebrated 50th anniversary of its Banking Service in 2015. This well
established and ancient bank has a rich history. With the initiation of some renown bengali
businessmen it was established to facilitate the disadvantaged people of the then East Pakistan
and started its banking operation officially on 28th January of 1965 in name of “Eastern Banking
Corporation” with four branches which soon reached 60 just before the independence. During
Non-cooperation movement in 1971, this bank performed the treasury function of East Bengal.
After independence, Eastern Banking Corporation was nationalized and renamed as “Uttara
Bank” and resumed its banking operation from 26th March 1972. Embarking on a progressive
journey, Uttara Bank continued to grow and expand in the successive years. It took the name
“Uttara Bank Ltd.” after privatization from June,1983 and became one of the largest private
sector bank of Bangladesh. In the later years, Uttara Bank became the trend setter in the banking
industry, acquiring lion's share in inward foreign remittances and a major market share in loans
to large, medium and small industries, traders and farmers. Based on the bank’s consistent strong
financial performance and its expanding presence, Uttara Bank Ltd. is currently ranked as the
most trusted bank in Bangladesh.
At present the bank has 229 branches and all are under online network. In addition, its effective
and diversified approach to seize the market opportunities is going on as continuous process to
accommodate new customers by developing and expanding rural, SME financing and offshore
banking facilities. Besides these traditional delivery points, the bank is also very active in the
alternative delivery area. It currently has the facilities of SMS Banking, Internet Banking and a
large number of ATMs of its own with ATM sharing arrangement with other partner banks.
The Bank is proud of its management team headed by Managing Director, & Chief Executive
Officer Mr. Mohammed Rabiul Hossain and it encourages all employees to devote a measure
of their time and talent to support distressed community by participating in CSR programs. Its
main objective is to render service to the people whether rich or poor and to contribute to the
development of the nation.
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2.4 Vision and Mission:
“A Bank with a Difference” is the motto of Uttara Limited. So the motto itself is self-
explanatory to deliver the vision of the bank. Uttara Bank limited is prepared to meet the
challenge of the 21st century well ahead of time. To cope with the challenge of the new
millennium it hired experienced and well-reputed banker of the country from the inception.
The bank has efficient and dedicated professionals and equipped with modern technology to
provide the best service in the need of the people and thus to realize its vision.
Vision
Mission
Focus of Efforts
Strategic Priorities
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2.5 Product and Service:
1. Retail Banking
2. Corporate Banking
4. Investment Facilities
Though Bonds
5. Trade Service
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 carry on the foreign exchange business, including buying and selling of foreign
currency, traveler’s cheques issuing, international credit card issuance etc.
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.
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2.5.Management of the Bank:
Boards of directors are the sole authority to take decision about the affairs of the business.
Now there are 13 directors in the management of the bank. All the directors have good
academic background and have huge experience in business. Captain Imam Anwar Hossain is
the chairman of the bank. The board of directors holds meetings on a regular basis.
All these committees meet on a regular basis for discussing various issues and proposals
submitted for decisions.
2.7 Functional Strucure of Uttara Bank Ltd: Uttara Bank Ltd. has the following
functional departments in its head office.
Managing Director
Vice President
Executive Officer
Principal Officer
Senior Officer
Management Trainee
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2.8 Logistic & Support Services Division (L&SSD:)
This Division was formerly known as General Services Division (GSD). Their main function
relates to procurements and supply of all tangible goods and services to the Branches as well
as Head office of Uttara BankLimited. This includes
a) Income, Expenditure Posting: All income and expenditures are maintained and posted
under these heads.
b) Cash Section: cash section generally handles cash expenditure for office operations
and miscellaneous payments.
c) Bills sections: this section is responsible for inland bills only.
d) Salary & Wages of the Employee: Salary and wages of the Head Office executives,
officers 7 employees are given in this department.
e) Maintenance of Employee Provident Fund: Employee provident fund accounts are
maintained here.
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a. Receives proposals
b. Proposes and appraises.
c. Get approval
d. Communication and Sanction
e. Monitoring and follow-up.
f. Set price for credit and ensure effectiveness of it.
g. Prepare various statements for onward submission to Bangladesh bank.
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2.15 Marketing Division:
Marketing Division is involved in two types of marketing .They are-
1. Asset marketing: Marketing of assets refers to marketing of various kinds of loans and
advances. In-order to perform this job, they often visits dome large organizations and attract
then to borrow from the Bank to finance profitable ventures.
2. Liability Marketing: The process of Liability marketing is more of less same as Asset
marketing. In this case different organizations having excess funds are solicited to deposit
their excess fund to the Bank. If the amount of money to be deposited is large, the Banks
sometimes offer a bit higher price than the prevailing market rate.
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Currently Uttara Bank Ltd. offers four types of card:
1. Local Silver Card.
2. International Silver Card
3. Local Gold Card
4. International Gold Card
Recently Uttara Bank has obtained the membership of VISA credit Card and soon they will
start marketing of it.
Management will have to keep close coordination with other banks as well as the Bangladesh
Bank to find out how to solve the problems related to Documentary Credit operations.
Coordination with Bangladesh Bank is an absolute necessity as Documentary Credit related
activities of all Authorized Dealer (AD) branches of all commercial banks are strictly
regulated by Bangladesh Bank. Still banks have little to do to tackle the problems caused by
the external factors. But banks can do something to minimize the problems caused by the
internal factors. Necessary measures include automation, establishing remittance-drawing
arrangements with foreign exchange houses and banks, regular performance appraisal and
promotions depending on that will minimize mistakes by the employees to a great extent.
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CHAPTER: 3
16
Study of the Work at Uttara Bank Ltd
at Prime Bank
3.1 General Banking:
Financial institution/ intermediary that mediates or stands between ultimate borrowers and
ultimate lenders is knows as banking financial institution. Banks perform this function in two
ways- taking deposits from various areas in different forms and lending that accumulated
amount of money to the potential investors in other different forms.
General Banking is the starting point of all the banking operating. General Banking
department aids in taking deposits and simultaneously provides some ancillaries services. It
provides those customers who come frequently and those customers who come one time in
banking for enjoying ancillary services. In some general banking activities, there is no
relation between banker and customers who will take only one service form the bank. On the
other hand, there are some customers with who bank are doing its business frequently. It is
the department, which provides day-to-day services to the customers. Every day it receives
deposits from the customers and meets their demand for cash by honoring cheques. It opens
new accounts, demit funds, issue bank drafts and pay orders etc. since bank in confined to
provide the service everyday general banking is also known as retail banking.
3.2 General Banking consists of the many sections in the branch. These are:
Customer Service
Account Opening/Closing
Payment Order Issue
Demand Draft Issue/Collection
Account Transfer
IBC/OBC Collection
Deposit Department
Clearing Department
Cash Department etc.
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3.5 Customer Service:
Customer service includes provide information to all type of customer queries. Each day
many people come to the branch with various types of problems. Some of information is like
Account opening requirements, DPS related information, FDR information, Give instruction
for address change, signature change, nominee change, and account closing information, DPS
closing information, FDR closing formalities, pay order, document issue and all type of
queries.
3.6 Before opening of a current or savings account, the following formalities must be
completed:
Application on the prescribed form.The customer information must be filled up with the
form. Introduction: The following persons can introduce an account opener;
Banker will supply a set of printed forms required for opening the account which will
normally include:
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3.8 Papers and Documents Required for Account Opening:
Individual Account
Proprietorship Account
Partnership account
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Account for Limited Company
Savings Account
FDR Account
STD Account
Any Bangladeshi National residing home or abroad may open savings account with UBL.
This account may be opened in single/joint name. The account holder may nominate his
nominee in this account. The nominee can get the balance amount without submitting
succession certificate after the death of account holder. This account bears usual rate of
interest. UBL offers 1% above the normal rate of interest on credit balance of TK.2.00 lac
and above kept in the savings account for more than 6 month.
Account opening form as per format below. The Account opening form and signature
card to be filled in and duly signed.
Two copies passport size photographs of the account holder.
Photograph of nominee (if any) duly attested by the account holder.
Photocopy of the 1st 7 pages of the passport for non-resident Bangladeshi national.
Signature in the account opening form/card must be same with the signature of the
passport.
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3.13 Accounting Entries of Clearing Department:
The following entries are given if the cheques are honored,
Customer A/C ________________________Debit
UBL General A/C _________________________Credit
UBL Principal Branch clears its cheques through the Head Office as well as the cheques of
other branches, because it is only permitted. The other branches send the instruments through
I.B.D.A UBL Principal Branch acts as an agent in this case. For this concern branch gives the
following entries,
UBL General A/C __________________Debit
Customers A/C __________________________Credit
If the instrument is dishonored, the instrument is returned to the concerned branch through
I.B.D.A. along with the following entries, Incase of return(For Inward instrument)
UBL General A/C ____________________ Debit
Customers A/C _______________________________Credit.
In case of return (For Outward instrument)
Customer A/C _________________________Debit
UBL General A/C ___________________________Credit.
In case of returning an instrument the respective officer usually looks for following reasons,
Account closed
Insufficient fund
Not arranged for
Payment stopped
Refer to drawer
Effects not cleared may be presented again
Amount in words and figures differs
Drawer’s signature differs
Alteration require drawer’s full signature
Mutilation requires drawers confirmation
Cheque post dated out of date
Date incomplete/missing
Payee’s endorsement require/ irregular
Payee’s endorsement requires bank confirmation
Clearing house stamp missing
Not drawn on UBL
Present through banker.
If the check is dishonored due to insufficiency of funds, UBL charges TK. 50/- as penalty.
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3.14 FDR Account:
Any Bangladeshi national residing home or abroad may open FDR with UBL. FDR may be
opened single/joint name for a period of 3, 6, 12, 24 and 36 months. UBL offers
attractive/competitive rate of interest in FDR.
The FDR becomes automatically renewed for like periods and amounts, unless this are
withdrawn by the depositor or the bank notifies the depositor in writhing at least 15 days in
advance of the original or any renewed maturity date of its desire to terminate the account or
cheque any term and condition of the account.
In UBL, limited companies, corporate groups, various other big companies, organizations,
Govt. Departments keep money in STD accounts. Frequent withdrawal is discouraged and
requires 7 (Seven) days prior notice. STD account opening procedure is similar to that of the
saving account. Initial account opening minimum amount requirement TK. 1000/-
In Short Term Deposit Account, the deposit should be kept for at least 7 (seven) days to get
interest. The interest offer for STD is less then that of savings deposit. 6% interest is paid on
their deposit. The bank is benefited because they have to pay less interest and the customers
are also benefited because they any time can divert money.
In UBL, usually customers give an instruction to the bank that their current account will be
debited whenever its deposited amount crosses a certain limit and this amount will be
transferred to the STD account.
Enter the new cheque book number in the register book against the specific
customer’s name.
Requisition slip filled properly along with the cheque book number.
Banker issues new cheque book if everything is in the right.
Banker verifies the slip.
A customer who opened a new account initially deposits minimum required money in
the account.
The account opening form is sent for issuance of a cheque book.
Respected officer first draws a cheque book.
Officer then sealed it with branch name.
In-charge officer enters the number of the cheque book in Cherub Book Register.
Officer also entry the customer’s name and the account number in the same Register.
Account number is then writing down on the face of the cheque book and on every
page of the cheque book including Requisition slip.
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The officer who has the signing authority signs on every page of the cheque book and
the next requisition slip exists in the chequebook.
The name of the customer is also written down on the face of the cheque book and
Requisition Slip.
The word ‘issued on’ along with the date of issuance is written down on the
requisition slip.
Number of cheque book and date of issuance is also written on the application form.
Next the customer is asked to sign in the cheque book issue register.
Then the respected officer signs on the face of the requisition slip put his initial in the
register and handover the cheque to the customer.
All the procedure for issuing a new cheque book for old account is same as the procedure of
new account. Only difference is those accounts have to submit the requisition slip of the old
cheque book with date, signature and his/her address. Computer posting is then given to the
requisition slip to know the position of account and to know how may leaves still not used.
The number of new cheque book is entered on the back of the old requisition slip and is
signed by officer.
Upon the request of a customer, an account can be closed. After receiving an application
from the customer to close an account, some procedures are 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 chargers and surrender the unused
cheque leaves. The account 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 should be signed by all joint holders.
A banker can also close the account of his customer or stop the account under following
considerable circumstances:
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3.21 Cash Section:
The cash section with all types of negotiable instruments, cash and other instruments and
treated as a sensitive section of the bank. It includes the vault, which is used as the store of
case instruments. If the cash stock goes beyond this limit the excess cash is then transferred
to Bangladesh Bank. Keys to the room are kept under control of cash officer and branch in
charge. The amount of opening cash balance is entered into a register. After whole days
transaction the surplus money remains in the cash counter is put back in the vault and known
as the closing balance. Money is received and paid in this section.
At first the depositor fills up the deposit in slip. There are two types of deposits in slip
in this branch. One for savings account and another for current account.
After filling the required deposit in slip depositor deposits the money.
Officers at the cash counter receives the money, count it enter the amount of money in
the scroll register kept at the counter, seal the deposit in slip and sign on it with date.
Then this slip is passed to another officer who enters the scroll number given by the
cash counter in his register along with the amount of the money, sign the slip and
keep the bank’s part of the slip. Other part is given to the depositor.
All deposits of saving account are maintained be one officer and other accounts by
another officer.
At the end of the day entries of both of these registers are cross checked with the
register kept at the counter to tee whether the transaction are correct or not.
First the client comes to the counter with the cheque and gives it to the officer in
charge there. The officer checks whether there are two signatures on the back of the
cheque and checks his balances in the computer. After that the officer will give it to
the cash in charge.
Then the cash in charge verifies the signature from the signature card and permits the
officer in computer to debit the client’s account by giving posting. A posted seal with
teller number is given.
Then the cheque is given to the teller person and he after checking everything asks the
drawer to give another signature on the back of the cheque.
If the instrument is free of all kind of error the respected officer will ask the bearer to
sign on the back of it.
He will then put his initial beside the bearer’s signature. She/He will also signs it on
its face, will write down the amount by red pen and will put on a scroll number from
his scroll register.
Then the cheque will be sent to the cash counter. At the cash counter bearer will be
asked again to sign on the back of the instrument.
The cash officer will then enter the scroll number in his register and will pay the
money to the bearer.
At the end of the day these scroll number of the register will be compared to ensure
the correctness of the entries.
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3.24 Sorting & Stitching:
Sorting: At the end of the day, the amount of cash has to be sorted out in order to
identify the different type notes like – 1000, 500, 100, 50, 20, 10, 5, 2, 1 and so on.
Hundred pieces of any type of note create a bundle and ten bundles make a ring. In
this way cash is actually sorted out.
Stitching: After sorting out the cash, bundles are stitched along with a slip bearing
the name of the bank, total number of notes and the signature of the Cash-In-Charge.
Two round seals are given at the both sides of the bundles.
Bank is a service oriented industry and deals with public money. They provide services to
their clients through different ways. “Transfer of money/fund of one person/customer to
another person/firm/organization through the bank is called remittance”. Any person can
remit funds to anyone within the country through any of the branches of some bank by the
following means with nominal charges:
Pay Order
Demand Draft
Telegraphic Transfer
Mail Transfer
This is an instrument issued by the branch of a bank for enabling the customer/purchaser to
pay certain amount of money to the order of a certain person/firm/organization/office within
the same clearing house area of the pay order issuing branch.
The Demand Draft is a written order by one branch of a bank upon another branch of the
same bank to pay a certain sum of money to or to the order of a specified person. This is an
order instrument in which the issuing branch gives instruction to the payee branch to pay
certain amount of money to the order of certain person/firm/organization.
In the prescribed format the purchaser/drawer branch instruct the drawer branch to pay a
specified sum of money to the payee named in the IBCA preferable by crediting his account.
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3.30 Clearing:
Where inter-banks receivables and obligations are settled. A particular house/place under the
control and supervision the central bank of the country. Where representatives of the member
bank/schedule banks/assembles/meets together for settlement of their respective banks
receivables and payables. It sits on all working days. In our country clearing house are
organized by the Bangladesh Bank at the different big cities. There are two types of clearing:
When a particular branch receives instrument which drawn on themselves and sent by other
member bank for collection are treated as inward clearing.
When a particular branch receives instrument drawn on the other bank with in clearing zone
and those instruments for collection through the clearing arrangement is consider as outward
clearing for that particular branch.
Customers deposit cheque, draft etc for collection attaching with their deposit receipt.
Instrument within the range of clearing are collected through local clearing house but the
other which are outside the clearing range are collected through OBC mechanism. A
customer of UBL principal branch local office Dhaka is depositing a check of Sonali Bank
Cox’s-Bazar. New as a collecting bank UBL principal branch will perform the following
tasks.
Collecting bank can collect it either by its branches of by the drawer’s bank they will forward
the bill then to that articulate branch. OBC number will be given on the forwarding letter.
In this case bank will work as an agent of the collection bank branch receives a forwarding
letter and the bill. Next steps are:
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CHAPTER-04
27
Overview of the Organization
At first Uttara Bank was established in 1964 named Eastern Banking Corporation. After
liberation war it named Uttara Bank. In 1984 published market share and named Uttara Bank
Limited. Uttara Bank is one of the oldest and largest commercial banks in private sector in
Bangladesh, with years of experience. Adaptation of modern technology both in terms of
equipment and banking practice ensures efficient service 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. The bank is listed in the Dhaka Stock Exchange Limited
and Chittagong Stock Exchange Limited as a publicly quoted company for trading of its
shares.
UBL is one the largest private banks in Bangladesh. It operates through 211 fully
computerized branches ensuring best possible and fastest services to its valued clients.
The bank has more than 600 foreign correspondents worldwide and total number of
employees nearly 3562.
The Board of directors consists of 14 members. The banks is headed by the Meaning Director
who is the Chief Executive Officer
The head office is located at Bank’s own 18-storied building at Motijheel, the commercial
center of the capital, Dhaka.
Its vision always strive to achieve superior financial performance is considered a leading
Bank by reputation and performance.
To established and maintain modern banking techniques, to ensure the soundness and
development of financial system.
Try to encourage saving in the form of direct investment.
Be one of the best banks in the Bangladesh.
To contribute in the socio-economic development of Bangladesh.
To established relationship banking and improve service quality through development
of strategic marketing plan.
To ensure optimum utilization of all available resources.
To established banking through the introduction of welfare oriented banking system and also
ensure equity and justice in the field of all economic activities, achieved balanced growth and
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equitable development through diversified investment operations particularly in the priority
sectors and development areas of the country. To encourage socio-economic uplift and
financial service to the lower income community particularly in the rural areas.
Functions of UBL are based on profit earning (as commercial bank), social welfare and
development of country. They usually have following functions:
The bank is carrying out commercial, corporate, investment and retail banking related
services to its customers through its 207 branches following the provisions of the bank
company act 1991 as follows;
a) Corporate finance
b) Corresponding banking
c) Documentary credits
d) Foreign exchange
e) Guarantees
f) Syndicated finance
g) Other related business
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4.8 Corporate Social Responsibility:
Uttara Bank Ltd embraces a culture of continuous involvement to fulfill our corporate social
responsibility. We have a deep commitment, loyalty and a high sense of responsibility to our
nation and its people. Uttara Bank Ltd conforms to all of the stringent regulations issued by
the Government and the Bangladesh bank. As part of our corporate social responsibility, bank
contributes greatly to the nourishment of the country’s all types of calamities, arts, culture
and sports. As part of its strong commitment to upholding corporate social responsibility,
bank donated Tk 10.00 million to Chief Advisor’s Relief Fund to help the massively
distressed people who were affected by flood & devastating cyclone since 2007.
UBL Networks
Corporate offices (corporate branch & Local office) 2
Regional office 12
Worldwide affiliates 600
Total Branches (including corporate branch & local office) 211
Authorized Dealer Branches 38
Treasury & Dealing Room 1
Training Institute 1
Man power 3562
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CHAPTER: 5
31
Duties & Responsibilities
Throughout my internee period I have worked with more or less all the CSO (Customer
Service Officer) and try to help at my level best to help them in their work. So basically I
know more about general banking. The tasks that I have done throughout my internee period
are given below:
I have started my internee with responsibility of Customer Service Officer. I was assigned to
work with account opening department. In a whole day I have to open more than 5 accounts.
Customer account opening is a lengthy process. If the customers have the documents that she/
he is needed to open that particular he or she must fill an account correctly. If there is any
problem found in the fulfillment of the from is wrongly filled, the from will be return on next
day. So the form must be filled correctly. If all the things are right, the CSM give the
permission to open the account. They have to fill up a KYC (Know Your Customer) from to
have more idea about the customer. The main purpose of this from is to give all necessary
information regarding the account, like the charges, benefits and if any specific inquiry the
customer ideas.
I have worked total more than 10 days in this section. The main responsibilities was received
several cheques from their clients. I also attached in the front side of the cheque clearing seal
and at the back side endorsement seal. My responsibility to ensure account number, account
holder name, which bank’s cheque etc. After confirming this I sent this cheque to my boss.
He was responsible for completing the other tasks.
I also provided information to all type of customer queries. Each day many people come to
the branch with various types of problems. I tried my best to give them the proper
information and try to solve their problem. Some of the information like account opening
requirements, DPS & FDR related information, give instruction for address change, signature
change, and mandate instruction, nominee change, and account closing information, DPS
closing information, FDR closing formalities, pay order, document issue and all type of
queries.
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5.5 Verification of Signature in Different Issue:
Verification of signature is very important for banking transaction. Because one of the
important proves to be an account holder is the signature. It was also a risky issue. I used to
verify signature for different issues like for balance inquiry, stop payment instruction, address
change, nominee change, signature change, cheque book delivery etc.
Pay Order is an instrument, which is used to remit money with in a city thorough banking
channel the instruments is generally safe as most of them are crossed. I issued more then 5 to
6 pay order in each day. At first Customer is supplied with PO form. After filling the form
the customer pays the money in cash or by cheque. The concerned officer then issues PO on
its specific block. This block has three parts, one for bank and other two for the customer.
‘A/C Payee’ crossing is sealed on all Pay Orders issued by the bank with authorized officer’s
signature in the block. At the end PO is provided to customer.
The Demand Draft is a written order by one branch of a bank upon another branch of the
same bank to pay a certain sum of money to or to the order of a specified person. This is an
order instrument in which the issuing branch gives instruction to the payee branch to pay
certain amount of money to the order of certain person/firm/organization. I issued more then
5 to 6 demand draft in each day. At first Customer is supplied with DD form. After filling the
form the customer pays the money in cash. Then I give entry in the DD register book.
I received different types of letter from different organization like other banks which I
records in inward book. I also send different types of letter to the different organization which
I record in the outward book.
I have learnt so many things about the banking sector. Now, it is very clear to me how Uttara
Bank Limited operates their operation on the ground of general banking in this country. I
explain this as follows:
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5.10 Trade Finance (Foreign Exchange):
Trade finance is an important and integral part of commercial banking which works to
facilitate the foreign exchange transactions. It is very much Lucrative and remunerative
operation for the bank. In order to conduct Foreign Exchange operation systematically and
methodically the Foreign Exchange Regulation (FER) Act, 1947 enacted on the 11 March
1947 in the British-India provides the legal basis for regulating receipts and payments and
dealings in the foreign exchange and securities (Bangladesh Bank, 2012). Basic regulations
for conducting Foreign Exchange Operation are issued by the Government as well as by the
Bangladesh Bank in the form of Public notice, circulars, SROs etc. Knowing how significant
part trade financing plays in the operation of a commercial bank, all the major branches of
PBL have the foreign exchange department.
5.11 Trade finance:
Trade finance refers to financing international trading transactions. In this financing
arrangement, the bank or other institution of the importer provides for paying for goods
imported on behalf of the importer through instruments such as LC/Letter of Credit
(Wikipedia, 2013). Trade finance typically involves short-term financing to facilitate the
import and export of goods. These operations may involve payment if documentary
requirements are met or may instead involve payment if the original obligor defaults on the
commercial terms of the transactions (e.g., guarantees or standby letters of credit). Either
way, the respective financial institution or bank facilitates the transaction by insuring the
payment. Trade finance includes such activities as lending, issuing letters of credit, factoring,
export credit and insurance (Trade Finance, 2016). Trade finance is of vital importance to the
global economy, with the World Trade Organization estimating that 80 to 90% of global
trade is reliant on this method of financing (Invest podia, 2016).
5.12 Foreign exchange:
Foreign Exchange means exchange of foreign currency between two countries. If the
"Foreign Exchange" is considered as a subject, it means all kinds of transaction related to
foreign currency. In other words, foreign exchange deals with foreign financial transactions.
Foreign exchange transactions encompass everything from the conversion of currencies by a
traveler to billion-dollar payments made by corporate giants and governments for goods and
services purchased overseas through trade finance
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5.13 Functions of Foreign Exchange Department:
Foreign exchange department performs many functions to facilitate the foreign exchange
transactions. These functions are:
The foreign exchange department consists of mainly two sections- L/C operations and foreign
Remittance, which perform all the functions mentioned above.
Foreign exchange
Department
Import Export
operation operations Foreign Inward Outward
Current A/C Remitt Remittan
ance ce
Foreign Exchange transactions are being controlled by the following rules and regulations:
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Sometimes CCI issues public notices for any kind of change in Foreign
Exchange transaction.
There are some terms which are important to know for foreign exchange transactions. It will
help better understand the foreign exchange transaction mechanism.
The issuing bank: It is the bank that issues documentary credit on account of its client.
The advising bank: This is the bank acting as agent of the issuing bank, to advise L\C to
the exporter or beneficiary.
Reimbursing bank: This is the bank acting as agent of the issuing bank, authorized to
make payment or to honor reimbursing claim of the negotiating bank.
Negotiating bank: This bank provides value to the beneficiary against presentation of
documents complying credits terms. Usually this is exporter’s bank that purchases the
export documents.
Notify party: The notify party is the Bank to whom the arrival of shipment has to be
notified or Informed.
Letter of credit:
Letter of Credit (L/C) is a credit contract whereby the buyer's bank is committed (on behalf
of the buyer) to place an agreed amount of money at th seller's disposal under some agreed
conditions.
Since the agreed conditions include amongst other things, the presentations of some specified
documents, the letter of credit is called Documentary letter of Credit. The Uniform and
practices for Documentary credit published by International Chamber of Commerce (1993)
Revision, publication no 500 defines Documentary Credit: Any arrangement, however
36
named or described, where by bank (the issuing bank) acting at the request and on the
instructions of a customer (the applicant) or its own behalf (SA, ICC Publishing, 1993).
1. Is to make a payment to or to the order of a third party (the beneficiary) or is to
accept and pay bills of exchange drawn by the beneficiary.
2. Authorizes another bank to effect such payment.
3. Authorizes another bank to negotiate against stipulated documents provided that
the terms and conditions are compiled with.
5.16 Import:
Bangladesh is one of the developing countries in the world. So like the other developing
countries Bangladesh imports more than it exports. Imports of goods into the Bangladesh
is regulated by the Ministry of Commerce in the terms of the Import- Export Act, 1950,
various Import policy orders and also public notices issued from time to time by the office
of the Chief Controller of Import and Export (CCI&E). Imports are the foreign goods and
services purchased by the customer, firms and government in Bangladesh. The importers are
asked by their exporters to open Letter of Credits (LC), so that their payment against goods is
insured. The importer takes help of a bank to import their goods through LC. The bank
defines import as to bring in, from abroad, something kind of goods and services. It includes
the following services-
1 .Letter of credit opening
2. Presentation/retirement of import document
The import mechanism first involves the issuing of a L/C as an instrument by a bank on
behalf of one of its customers, authorizing an individual or a firm to draw draft on the bank or
on one of its correspondents for its account under certain conditions which is predetermined
in the credit. Secondly the bank’s import mechanism involves the retirement of import
mechanism on receiving the payment or under certain conditions against the security of
payments made by the importer in documents required an advance payment date.
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Year Import (million taka)
2012 80,617
2013 99,424
2014 98,452
2015 168,704
2016 190,384
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Foundation - JCF)
Direct communication with both Sender and Receiver for solving queries
relating to cash payment/account deposit (if any)
Disbursement of foreign remittance through ATM booths using My
Remit Card
Provide Anti-Money Laundering (AML) and Combating Terrorist
Financing (CTF) advice.
2016 50,890
2015 38,433
2014 35,447
2013 30,669
2012 20,905
Table: Remittance from 2012 to 2016 (Source: Uttara Bank Limited, 2012)
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5.20 Foreign Remittance collection statement of Uttara BankLtd. (Corporate
Branch):
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CHAPTER: 6
41
Recommendation, Finding &Conclusion
6.1 Recommendations:
On the basis of the findings from the observation and research, there are some
recommendations that can be used for fruitful purposes.
Must withdraw the SMS banking charges or at least give the customers
preference about using this service to avoid customer dissatisfaction.
Priority suit should be setup in the branches to provide quick and better
service to valued and important customers
Should take necessary steps to adapt to the new online reporting system.
Uttara Bank should increases their number of employees to reduce stress and
bring momentum in service delivery.
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6.2 Conclusion:
Foreign Exchange Division is crucial for any bank. A bank’s performance largely depends on
this division. Foreign Exchange activities have an equal significance to economic growth and
development of the country. So through this division the banks are contributing to the interest
of the country. Working three months in Uttara Bank Ltd. Goalabazar Branch Sylhet, the
overall procedure of Overall activities has been observed. As being the top class bank of
Bangladesh (according to the CAMEL rating), it has a good reputation and faith to exporters-
importers of Bangladesh. Moreover, Uttara Bank Ltd. has got a fleet of talented, experienced
and efficient officials working in the Foreign Exchange Division. They are quite efficient at
handling large scale of export-import operation and maintaining a good relation with the
client, as well as reporting the trade finance data to Bangladesh Bank, within their tight
schedule. The findings from the research imply to conclude that the employees of the Uttara
Bank Ltd. Who report the trade finance data to the central bank; have moderately rejected to
recognize the new online reporting system, introduced by Bangladesh Bank, as a good one.
Although they have accepted the fact that the new system is more convenient to a slight
degree, they are all quite dissatisfied with the amount of time it consumes to use the system.
However, the online system is on its upgrading phase. After each upgrade, training programs
should be conducted to help the users learn about the changes and also to help the developers
of the system take feedback for further upgrading. The commercial banks may also increase
their manpower in the foreign exchange department to take on the increased work pressure
mounted over the introduction of the new system.
Further research:
Since the selected factors in the conducted research only cover 65% of the influencing
factors, of which only two affect the system significantly, there is a scope of further research
to find out some other significant factors that could help both the parties to improve the new
online system further. Besides, there should be more research on the issue considering the
users from other commercial banks as well.
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Reference:
44
Uttara BankLtd. (2013). Annual Report 2012. Dhaka, Bangladesh: Uttara
Bank Limited
SA, ICC Publishing. (1993). Uniform Customs and Practice for Documentary
Credits. Documentary Credits. UK: 2nd edition, Butterworth. Retrieved from
http://freepdfdb.com/doc/5-2865807.html
Sethi, TT. (2004). Money Baking and International Trade. New Delhi: S.
Chand &Company Ltd.
Wikipedia, the free encyclopedia. (2013). Trade finance 2013. Retrieved from
http://en.wikipedia.org/wiki/Trade_finance
45
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Journal:
Journal of Bangladesh bank
Oxford dictionary 2006 (2006) “Dictionary of English” fourth edition, Oxford
University Press, Newyork, USA.
Khan Dr. Ashraf & Dr. Alauddin by Modern Banking & Insurance (2005)
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Annual reports of the Bangladesh bank
Uttara BankLtd. Annual reports 2014
Uttara BankLtd. Head Office Circulars;2011,2014,2015
Uttara BankLtd. Brochures of Loans and Advances 2014
Annual Reports Of PBL
Bulletin:
Bangladesh Bank
Synopsis:
History of Banking In Bangladesh
Websites:
www.banglapedia.com
www.google.com
www.wikipedia.com
www.primebank.com.bd
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Personnel of Sylhet Corporate Branches
Schedule of Charges January 01, 2015.
Newspapers
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List of Acronym
MU Metropolitan University
CD Current Deposite
SD Saving Deposit
A/C Account
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