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1
INTERNSHIP REPORT ON
OVERALL BANKING ACTIVITIES
OF
UNITED COMMERCIAL BANK LIMITED
Prepared for:
Ms. Farah Israt Tania
Lecturer
Faculty of Business Studies
Premier University, Chittagong
Prepared By:
Mohammad Ariful Hasan
8th semester, Finance Department
ID: 0920113605
Premier University, Chittagong
Date of Submission: 26th November 2014
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LETTER OF TRANSMITTAL
Date: 26th November 2014
To,
Ms. Farah Israt Tania
Lecturer
Faculty of Business studies
Premier University, Chittagong
Subject: Submission of Internship Report.
Madam,
With due respect & humble submission, I would like to state that I have completed my internship
report on “Overall Banking activities of United Commercial Bank Limited.” Though it is a new
experience I have tried my level best in gather information about this topic. Without sincere
cooperation & proper guideline of you it was not possible for me to prepare this report. For this act
of kindness I am grateful to you.
I would like to express my gratitude for your kind guidance to completion of the report assigned to
me. I sincerely hope that this report will meet your expectation & will serve its purposes.
Yours sincerely
___________________
Mohammad Ariful Hasan
8th semester, Sec – A
Department of Finance
Faculty of Business Studies
Premier University, Chittagong
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ACKNOWLEDGEMENT
I have completed my internship from United Commercial Bank limited at Jubilee Road Branch,
Chittagong from 18th August 2014 to 17th November 2014. First of all I would like to express my
gratitude to the Almighty Allah, whose invisible guidance helped me to complete this report.
This report has not only gave me some invaluable experience, at the same time it has made me
indebted some extremely helpful and knowledgeable people. By working there as an intern I have
learnt so many things which are very valuable for me in future.
At first I want express my deep gratitude to my Academic Supervisor Ms. Farah Israt Tania, Without
whom this report would not be possible to accomplish. I am so honored to have his as my
supervisor who taught me about professionalism and empathy which are key factor in corporate
success.
Finally, I want to thankful to Mr. Md. Aman Ullah, First Vice President & Manager of UCBL, Jubilee
Road Branch & Mr. Md. Salahuddin, Vice President and Operation Manager Jubilee Road Branch,
Chittagong for their constant support, guidance and supervision for preparing the report.
And last but not the least; I would like to thank all the personnel working at United Commercial
Bank Ltd., Jubilee Road Branch. They made the environment congenial and favorable for me to
understand the task. Without their assistance and co-operation, this report might not have seen
the light of day.
I really enjoyed a lot every moments like internship period to preparing final report. I hope that it
will help me in my future professional work. Moreover I like to thank everyone who was helped me
for preparing this report.
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TABLE OF CONTENT
Topic Page Number 1.1 EXECUTIVE SUMMARY 05
1.2 BACKGROUND 06
1.3 OBJECTIVES 06
1.4 METHODOLOGY 07
1.5 LIMITATIONS 07
2.1 UNITED COMMERCIAL BANK OVERVIEW 08
2.2 BANKING DEPARTMENT OF UCBL 11
2.2.1 GENERAL BANKING DIVISION 11
2.2.2 GENERAL ADVANCE DIVISION 24
2.2.3 FOREIGN EXCHANGE ADVANCE 35
3.1 SWOT ANALYSIS 39
3.2 FINDINGS 41
3.3 RECOMMENDATION 41
3.4 CONCLUSION 42
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1.1 EXECUTIVE SUMMARY
United Commercial Bank Limited (UCBL) is one of the first generation private sector Banks in
Bangladesh, commenced its commercial operations from mid 1983 and has since been able to establish
one of the largest network of 139 branches.
United Commercial Bank Ltd. offers all kinds of Commercial Corporate and Personal Banking services
covering all segments of society within the framework of Banking Company Act and rules and
regulations laid down by our central bank. Diversification of products and services. UCBL Jubilee road
branch is one of the branches which facilitate all kind of facilities that a Bank offers. It has General
Banking, General Advance & Foreign Exchange Advance.
General Banking is the starting point of all the banking operating. It is the department, which provides
day-to-day services to the customers. General Banking consists of the many sections in the branch.
These are including customer service, account opening/closing, remittance, deposit department,
account’s department.
General Advance provides loan and advance products to the client for financing different purpose that
fulfill the requirements of the bank and have good return to the investment as well as satisfy the client.
The loan and advance products are personal loan scheme, small & medium enterprise loan, working
capital financing, import financing, export financing, syndicate loan, industrial financing etc.
Foreign Exchange Department provides import, export & foreign remittance facilities.
United Commercial Bank Limited is the preferred choice in banking for friendly and personalized
services, tailored solutions for business needs, global reach in trade and commerce and high yield on
investments, assuring Excellence in Banking Services.
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1.2 BACKGROUND
A commercial bank performs an imperative function in the economy. It helps to mobilize money by a
continuous procedure of borrowing and lending money. It accumulates its capital through both own
sourcing and out sourcing (depositors are the major part of outsourcing). This amount is then lent to the
other party. Being a service industry provides various services to its customers. So, every commercial
bank has to think about their customer first, because the customers are the superior.
This report has been prepared as the partial fulfillment of BBA program in Premier University,
Chittagong. To complete the BBA program successfully each participants required to undergo internship
program in an organization for three months to learn practical knowledge of business activities. To
accomplish the abovementioned requirement, I am assigned as an internee in United Commercial Bank
Ltd, Jubilee Road Branch for 3 months starting from August 18, 2014.
1.3 OBJECTIVES
The objective of the report is to gather practical knowledge particularly regarding any business
organization and its operations. Theoretical classes of Bachelor of Business Administration program
provides us knowledge regarding theories and models whereas internship program gives us the chance
to view those systems and their operations (based on theories and models) in practice. Apart from this
broad objective we can identify the objectives of this report as follows:
Understanding the environment, functions and management of the organization for my case
it is UCBL Bank.
Narrating experience in working in UCBL
To apply theoretical knowledge in the practical filed in order to formulate a problem to work
on.
Defining and analyzing the problem.
To learn about banking more thoroughly.
To relate the theoretical knowledge with the practical content.
7
1.4 METHODOLOGY
I joined as an intern in UCBL Jubilee Road Branch on August 18, 2014. I was assigned to work under the 4
departments within 3 months. I worked under each officer and learn from them directly. I frequently ask
questions and obey their instructions.
Scope
As my study title is “The overall Banking Activities of UCBL”, it is clear that the scope of this study has
spread over whole customers of the organization both corporate and retail. The scope of the study has
been divided in two parts. One is operational scope and another is time scope. These are described
below –
Operational Scope: The operational scope of this study has been confined working under all the
departments for 3 months.
Time Scope: This report has accomplished with in the period of three months started from 18th
August, 2014.
1.5 LIMITATIONS
While doing this paper, I have faced several obstacles. They were –
The website of UCBL does not contain updated information.
UCBL does not possess any Annual Report or Brochure.
I have to submit the report within short period of time.
8
2.1 UNITED COMMERCIAL BANK OVERVIEW
With a firm commitment of the economic and social development of Bangladesh, United Commercial
Bank (UCB) started its journey in mid 1983 and has since been able to establish itself as one of the
largest first generation banks in the country. With a vast network of 139 branches the Bank has already
made a distinct mark in the realm of Private Sector Banking through personalized service, innovative
practices, dynamic approach and efficient Management.
The Bank has expanded its arena in different and diverse segments of banking like Retail Banking, SME
Banking, Corporate Banking, Off-shore Banking, and Remittance etc. Besides various deposit and loan
products of Retail Banking, the Bank caters export and import loan to deserving candidates which in turn
helps the overall economy of the country through increased earning of foreign exchange. Other
consumer products like UCB Cards have been showing tremendous success and growth since its
inception in 2006 and soon became the leader in local market with around 40000 card holders.
The Bank also provides its clients with both incoming and outgoing remittance services. Thus the
expatriates find an easy way to send money through proper channel.
With a firm commitment to promote SME sector, the Bank is also assessing and monitoring business
loans, managing business financing risks, pricing products and working for further development of SME.
Its Corporate banking service consists of simple business of issuing loans to more complex matters, such
as helping minimize taxes paid by overseas subsidiaries, managing changes in foreign exchange rates or
working out the details of financing packages necessary for the construction of a new office, plant or
9
other facility. Its area of expertise is in-depth knowledge in financial analysis with analytical capability of
financing large project including RMG and infrastructure development projects.
The Bank, aiming to play a leading role in the economic activities of the country, is firmly engaged in the
development of trade, commerce and industry by investing in network expansion and new technology
adoption to have competitive advantage.
UCBL at a glance
Name of the Company : United Commercial Bank Ltd.
Legal Form : A public limited company incorporated in Bangladesh on 26th
June 1983 under the companies Act 1994 and listed in Dhaka Stock
Exchange Limited on 30th November 1986 and Chittagong Stock
Exchange Limited on 15th November 1995.
Commencement of Business : 27 June 1983
Head Office : Bulus Center, Plot - CWS- (A)-1, Road No – 34, Gulshan avenue,
Dhaka-1212
Telephone No. : +88-02-55668070, +88-09611999999
Fax No. : +88-02-55668070-6000, +88-09611999911-5200
Website : www.ucb.com.bd, www.ucbl.com
SWIFT : UCBL BDDH
E-mail : [email protected]
Chairman : Mr. M. A. Hashem
Managing Direction : Mr. Muhammed Ali
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Auditors : Hoda Vasi Chowdhury & Co. Chartered Accountants
No. of Branches : 139
No. of ATM Booth : 101
No. of Employees : 3,374 (31.12.2012)
Authorized Capital : Tk. 15,000 million
Paid up Capital : Tk. 8,366 million
Face Value per Share : Tk. 10
Organizational structure
Managing Director (MD)
Deputy Managing Director (DMD)
Additional Deputy Managing Director (ADMD)
Senior Executive Vice President (SEVP)
Executive Vice President (EVP)
Senior Vice President (SVP)
First Vice President (FVP)
Vice President (VP)
First Assistance Vice President (FAVP)
Assistance Vice President (AVP)
Senior Executive Officer (SEO)
Executive Officer (EO)
Senior Officer
Management Trainee Officer
Officer
Junior Officer
11
General Banking
General Advance
Foreign Exchange Advance
2.2 BANKING DEPARTMENT OF UCBL:
2.2.1 GENERAL BANKING DIVISION
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. 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.
Product & services:
Savings Account: UCB Savings Account provides an opportunity of savings with a handsome savings rate.
This is an easy to operate savings account to earn deposit on your small savings.
Facilities:
I. Debit Card
II. Check book facility
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Current Account: UCB provides you the best account from which drawings are allowed on demand
without any restriction within the funds available in its credit. This is your ideal choice to conduct and
have access of your day to day transactions.
Facilities:
I. Debit Card
II. Check book facility
UCB Savings Plus
Eligibility: Must be a citizen of Bangladesh. 18 years & above. Either in single name or in joint names.
Minimum Opening Balance: Tk. 1,00,000/-. Tax, VAT & ED: Govt. Tax at source. VAT & Excise Duty shall
be borne by the depositor and will be deducted as per NBR rules.
UCB NRB Savings
Eligibility: Must be a non resident Bangladeshi. 18 years & above. Minimum Opening Balance: Tk.
25,000/-. Cheque Book issued as per rule. Tax, VAT & ED: Tax, VAT & Excise Duty shall be borne by the
depositor as per NBR rules.
UCB Women's Savings
Eligibility: Women irrespective of any age. Account can be opened in individual or joint name only.
Minimum Opening Balance: Tk 100/- Debit Card issued as per rule. Cheque Book issued as per rule.
UCB Youngsters Savings
Eligibility: Must be a student of any School/College/University/Institution of Bangladesh. Individual
student irrespective of age can open Youngsters Savings with any UCB branch. Minimum Opening
Balance: Tk 100/-. Debit Card issued to student of 12 years & above. In case of below 12 years, it may be
issued in favor of legal guardian. Tax, VAT & ED: Tax, VAT & Excise Duty will be applicable as per
Govt.(NBR) rules.
NFCD - Non-Resident Foreign Currency Deposit Account
13
Money begets money. Then why to sit idle with your hard earn money when you have the lucrative UCB
Fixed Deposit schemes. Invest your money to UCB term deposit schemes and have the luxury of highest
returns.
RFCD - Resident Foreign Currency Deposit Account
Bangladeshi Nationals residing in Bangladesh are eligible to open this a/c with foreign exchange brought
in at the time of their return from travel abroad.
Fixed Deposit
Money begets money. Then why to sit idle with your hard earn money when you have the lucrative UCB
Fixed Deposit schemes. Invest your money to UCB term deposit schemes and have the luxury of highest
returns.
Special Notice Deposits
Account from which drawings are allowed subject to serving of 7 (Seven) days prior notice and bear a
pre-determined interest rate on day end balance (daily product) basis is Special Notice Deposit (SND).
UCB DPS Plus
Eligibility: Must be a citizen of Bangladesh. 18 years & above. Installment size: Minimum installment size
will be Tk.100/-and multiple of 1,000/- but not exceeding Tk.25,000/-Tenure: 2, 3, 5, 7 & 10 years.
Installment shall be deposited by the 20th day each month. No advance installment is acceptable in this
DPS account. Tax, VAT & ED: Govt. Tax at source. VAT & Excise Duty shall be borne by the depositor and
will be deducted as per NBR rules
UCB Women's DPS Plus
Eligibility: Women irrespective of any age. Size of installment will be Tk.100/-, Tk.200/-, Tk.300/-,
Tk.400/- & Tk.500/- or its multiple but not exceeding Tk.25,000/-. Tenure: 2, 3, 5, 7 & 10 years.
Installment shall be deposited by the 20th day each month. No advance installment is acceptable in this
DPS account. Tax, VAT & ED: Govt. Tax at source. VAT & Excise Duty shall be borne by the depositor and
will be deducted as per NBR rules
UCB Youngsters DPS
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Eligibility: Must be a student of any School/ College/ University/ Institution of Bangladesh. Individual
student irrespective of age can open Youngsters Savings with any UCB branch. Size of installment will be
Tk.100/- , Tk.200/- , Tk.300/- , Tk.400/- & Tk.500/- or its multiple. Tenure: 5 & 10 years. Installment shall
be deposited by the 20th day each month. Advance payment of any number of installments is
acceptable. Tax, VAT & ED: Tax, VAT & Excise Duty will be applicable as per Govt.(NBR) rules
UCB NRB DPS Plus
Eligibility: Must be a citizen of Bangladesh. 18 years & above. Size of installment will be Tk.100/- ,
Tk.200/- , Tk.300/- , Tk.400/- & Tk.500/- or its multiple but not exceed Tk.25,000/. Tenure: 2, 3, 5, 7 & 10
years. Installment shall be deposited by the 20th day each month. No advance installment is acceptable
in this DPS account. Tax, VAT & ED: Govt. Tax at source. VAT & Excise Duty shall be borne by the
depositor and will be deducted as per NBR rules
UCB RMG DPS
Eligibility: Must be a citizen of Bangladesh. 18 years & above. Installment size: Size of installment will be
Tk.100/- its multiple but not exceeding Tk.5,000/-. Tenure: 2, 3, 5, 7 & 10 years. Installment shall be
deposited by the 20th day each month. No advance installment is acceptable in this DPS account. Tax,
VAT & ED: Govt. Tax at source. VAT & Excise Duty shall be borne by the depositor and will be deducted
as per NBR rules.
UCB Earning Plus
3 Monthly Interest Payable Fixed Deposit:
Eligibility: Must be a citizen of Bangladesh. 18 years & above. Must have or to open a CD/SB
account with UCB. Tenure: 3 & 5 years. Minimum Amount: Tk 50,000/-. Maximum
Amount: Multiple of Tk 50,000/- Tax, VAT & ED: Govt. Tax at source. VAT & Excise Duty shall be
borne by the depositor and will be deducted as per NBR rules.
4 Quarterly Interest Payable Fixed Deposit:
Eligibility: Must be a citizen of Bangladesh. 18 years & above. Must have or to open a CD/SB
account with UCB. Tenure: 3 & 5 years. Minimum Amount: Tk 50,000/-. Maximum
15
Amount: Multiple of Tk 50,000/-. Tax, VAT & ED: Govt. Tax at source. VAT & Excise Duty shall be
borne by the depositor and will be deducted as per NBR rules
UCB Money Maximizer
Eligibility: Must be a citizen of Bangladesh. 18 years & above. Must have a CD/SB account with
concerned branch of UCB. Tenure: 5 & half years. Minimum Amount: Tk 25,000/-. Maximum
Amount: Multiples of Tk 50,000/- up to Tk 25,00,000/-. Tax, VAT & ED: Govt. Tax at source. VAT & Excise
Duty shall be borne by the depositor and will be deducted as per NBR rules
UCB Multi-Millionaire
Eligibility: Must be a citizen of Bangladesh. 18 years & above. Tenure: 5-10 years for 1 Million, 7-12 years
for 5 million, 10-15 years for 10 million. Installment shall be payable by the 20th day each month.
Advance payment of any number of installments is acceptable. Tax, VAT & ED: Govt. Tax at source. VAT
& Excise Duty shall be borne by the depositor and will be deducted as per NBR rules.
Account Opening department:
Responsibility of the customer service starts with opening of new account in the name of new customer.
This is the starting point of the client bank relationship. By opening an account, the bank bridge it’s
customer to avail the facilities provided by the bank.
Formalities for Open an Account
For opening the account, the first hand requirements are-
Application on the prescribed form
Introduction of the applicant
Specimen signature
Two copies of passport size recent photograph with attested by the introducer.
Required Documents
Personal Account
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Two Copies of Passport size photographs of the applicant attested by the Introducer and one copy
passport size photograph of the Nominee attested by the applicant.
Copy of passport/National Identity Card/ Voter ID Card/ Certification from Word Commissioner or
Union Perished Certificate.
Details of occupation/employment and sources of wealth or income.
Current Proprietary
Same as personal account plus Trade License.
Partnership Account
Same as personal account plus Trade License and Partnership deed.
Limited Company
Certificate of Incorporation.
Memorandum and Articles of Association.
Resolution of the Board of directors.
Maintenance of Specimen Signature Card
Specimen Signature should be retained in card cabinet arranged in account number order. The key of
the cabinet should be held by an authorized officer who should ensure that cabinets are securely locked
and placed inside the Strong Room overnight.
Maintenance of Account Opening Form (AOF)
Account Opening Form is kept in AOF cabinet according to the account type as well as account number.
Signature should be retained in card cabinet arranged in account number order. The key of the cabinet
should be held by an authorized officer who should ensure the security of these forms
Letter of Thanks
After completing all the formalities of opening an account, a letter of thanks is send to the address of
the customer. If letters addressed to customers, introducers or referees are returned undelivered or not
satisfactorily responded, then no service should be provided to the customer unless specifically
approved by the Branch Manager.
17
Letter of Welcome
Letter of welcome send to the potential customer to let them know about the latest offer of UCBL.
Closing an Account
When a customer wants to close his account in the bank he has to follow the following procedure
The client writes a written application
She/he surrenders the unused checkbook
The bank takes charge TK. 200.00 for closing fee
The rest amount gives to the customer
Closed rubber stamp uses top of the respective account opening form and file.
Issuance of Cheque Book
A cheque book contains a number of cheques, which is given to a customer upon written request and
after marking the payment for the cheque book. It enables a customer to make withdrawal from his
account or make payment to various parties by issue of cheques.
All the account opening formalities must be completed before, issuance of cheque book. Particulars of
the cheque book requisition should be completed containing title of account, account number, number
of leaves and signature of the customer. Signature of the customer is verified on the requisition. If
customer is unable to collect his cheque book, then he can give authority to the third person to collect
his cheque book on his behalf by signing on the back of the requisition.
Cheque book is taken out from the locker. It is assured that series of the cheque book is in order.
Particulars are entered in the cheque book issuance register. Account number is stamped on every leaf
of the cheque book and those leaves are counted. Name of the account holder is written on the cover of
the cheque book and requisition on the cheque book for further issuance is properly filled stamped and
signed by officer of the bank.
Cheque book is delivered to the customer and his signature is taken on the cheque book issuance
register, cheque serial number is entered in the system (PcBANK2000). Stock of Cheque books are
balanced at the end of each day and kept under safe custody.
18
Account bills & remittance department
Remittance is one of the important items of bank business. Now a day business person cannot run his
business without bank remittance facilities. Sending some money from one station to another through
banking channel is called remittance. Remittance may be both local and foreign. The main instruments
used for local remittance of fund are:
Pay Order (PO)
Demand Drafts (DD)
Telegraphic Transfer (TT)
Pay Order (PO)
Payment order is meant for making payment of the bankers own of the customer’s dues locally and not
for affecting any remittance to outstation. In a sense, the payment order is used for making a remittance
the local creditors.
Issuance of Pay Order
The customer should fill up PO application form.
Money should be received by cash or by debiting clients account.
Give necessary entry in the Pay Order register where payee’s name, date, PO no, etc is
mentioned.
Printed payment order leaf should be filled and signed by two authorized officers.
Entry should be given in computer under supervision of authorized officers.
After scrutinizing and approval of the instrument by the authority, it is delivered to customer.
Signature of customer is taken on the counterpart.
Demand Draft (DD)
A bank draft is an order to pay money drawn by one office of the bank on other office up on other office of
the same bank for a sum of money payable to order on demand. A bank draft is an order by one branch to
another branch of the same bank outside the clearing zone.
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Issuance of Demand Draft
Issuance procedure of Demand Draft is same as of Pay Order.
Issuance of Duplicate PO/DD
If the customer wants to issue a duplicate DD, than customer is asked to do the following formalities:
Making a general diary (GD) in the nearest Police Station.
Furnishing an Indemnity Bond in Tk.50/= stamp.
The banker immediately marks “Stop Payment” in the register after receiving the application from
the customer and a duplicate PO/DD is issued.
Encasement Procedure of DD
After receipt of advice:
On receipt of advice from drawing branches following entries are passed. The signatures of
the issuing branch should be verified by the responding branch
Head Office A/c- Branch concerned Debit
Bill Payable Account- DD Payable Credit
Particulars of the above are entered on DD Payable Register in which separate foils are allocated
to every branch and an index is maintained.
The particulars are checked and initialed by the in-charge.
Payment in Cash
The dates, amount in words and figures, branch drawn upon and signatures on the drafts are
checked.
Particulars of the draft are verified from the register.
Payment date is noted on the register.
Stamp is affixed on the face of the drafts.
Draft together with the register is sent to the officer in-charge for cancellation and initials in the
register.
After cancellation the draft is sent to the cash department for payment.
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In case of any irregularity in the draft an advice letter is sent to obtain the confirmation
of the drawee branch.
Payment in clearing
Collection Bank’s stamp, crossing and discharge are checked.
Other procedure is similar to that explained in payment in cash.
Telegraph Transfer (TT)
Sometimes the remitter of the fund requires the money to be available to the payee immediately. In
that case, the banker is requested by him to remit the funds telegraphically. Here fund is transferred
through the aid of Test Key Materials and SWIFT. TT can be both foreign and local. On received of TT
massage test number should be checked immediately. Then voucher to be passed through register duly
authenticated by authorized officials.
Advice to Payee:
When TT Advice is receipt by the paying branch from the issuing branch, the advice (IBCA) is
posted in the TT register for respond only without preparing any voucher.
If the amount is to be credited to be payee’s account.
Date of payment is noted in the register and initialed. If the TT is to be issued, then the receipt
number is noted on the register.
The receipt along with the register is sent for checking and signature of the in charge and
manager.
After that, the receipt is sent to the payee.
Test Key Tables
Secure Code Tables or Test Key Tables (TKT) is one of the facilities used for authorization of client orders
made by bank-online system or by fax or email. In order to preclude any possibility of misuse, your
personal Secure Code Tables should be kept in a safe place where it is accessible only to authorized
persons.
21
The test key is a digital signature that will secure any message to and from the bank. It is calculated by
adding the key number from each table together with the unique fixed number sent to each client. It has
3 parts:
Part-1
Table -A Branch Code
Table- B Amount Code
Table- C Date Code
Part-2
Table-A Amount Code
Table-B Date Code
Table-C Currency Code
Table-D Required for TT and DD
Part-3
Table-A Variable Sheet
Crossing of Cheques and Endorsement
Cheque: Cheque is a negotiable instrument. Cheques can be of two types:-
Open or Uncrossed Cheque.: An open cheque is a cheque which is payable at the counter of the drawee.
Bank presentation of the cheque.
Crossed Cheque: A crossed cheque is a cheque which is payable only through a collecting banker and not
directly at the counter of the bank. There are two mode of crossing- General Crossing and Special
Crossing.
Endorsement
Endorsement is an essential part of day to day work in Bank. A cheque requires varieties of
endorsement like-
Branch Name
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Account Number
Signature Verification etc.
Clearing
The function of clearing department can be divided into two parts:
Outward Clearing:
Messengers of different branches bring instruments drawn on other Banks to the clearing
section of Head Office.
Bills section of UCBL Head Office also sends the instruments drawn on other Banks to the
clearing section for collection.
The clearing stamps are affixed on the instruments and endorsed
The particulars of these instruments are entered in the main schedule of Banks through
NHCASH22 software and inserted in floppy disc.
The diskettes along with the instruments are carried to the Clearing House.
After going there the concerned officials of UCBL gives the instruments to the representative of
respective Banks.
Claims of UCBL on other Banks are set off by Bangladesh Bank through debiting other Bank’s
account and crediting UCBL’s account.
This function is done in the first house.
Inward Clearing:
The instruments drawn on UCBL are received from other Banks in the Clearing House.
The amount and numbers of instrument are entered in the house from main schedule of
respective Banks.
The instruments with schedule are arranged branch-wise.
The instruments are sent to the branches concerned for clearance and IBCAs are collected from
them for honored cheques.
The dishonored instruments are sent back to respective Banks through the second house.
23
Collection of Cheques and Bills
One behalf of counts banks play a vital role to collect cheques and bill a credit to the beneficiary’s a/c
through banking channel. To collection of cheques and bills the bank follows two systems:
Outward Bills for Collection (OBC): These bills are included within the clearing area. These bills can be
from the same bank but different branches.
Inward Bills for collection (IBC): These bills can occur outside Chittagong city within one bank or others
bank.
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2.2.2 GENERAL ADVANCE DIVISION
The General Division deals with asset selling of the Bank. Generally financial institutions like Commercial
Banks pool fund from society in terms of deposit & channel this fund in terms of credit to different firms
in business community as well as to individuals with deficit of fund in the society. And this facility is
generally known as loan. So in a broader sense we infer that bank is providing solutions to the business
as well as to the individuals for their financial needs. UCBL’s credit mission is to actively participate in the
growth and expansion of our national economy by providing credit to viable borrowers, efficiently
delivered and competitively priced. UCBL’s client base consists of corporate, institutional and private
clients to help them realize their short term goal as well as long term aspiration.
General Guidelines
In the normal course of conducting business, the Bank will prefer trade financing in the form of
short term (up to 12 months) self liquidating cash flow supported and collateralized trade
transactions.
The Bank will consider lending short-term working capital finance to well establish entities
engaged in manufacturing, assembling, processing of goods and commodities for consumption in
domestic as well as international market.
The Bank will selectively, on a case-by-case basis, carefully approve term loans (loans with original
tenor exceeding one year) with proper credit risk assessment supported by satisfactory cash flow
statement.
The Bank will, on a case-to-case basis, approve disclosed participations in syndications.
The Bank will consider financing construction contractors. However, all such transactions should
be properly analyzed in line with the status of contract proceeds and proper cash flow
justifications.
The Bank will at all times maintain at the minimum a pari passu status to other Banks in all
lending relationship. Second mortgages or lower, or second charge or lower, are not to be
accepted as primary security.
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Loan & Advance
Fixed Term Loan: These are the non-revolving loans made by the Bank with fixed repayment schedules.
This loan is given for a specific term and usually repaid in Equal Installment either of monthly or
quarterly. The interest may be paid quarterly or along with the installment. Fixed term loans are
categorized into three categories based upon its tenure which is defined as follows:
o Short-term loan: The tenor of this loan is less than one year.
o Mid Term loan: The tenor of this loan is between one to five years. This type of loan is most preferred by
both bank and the borrower. This loan is comprises with consumer credit, Agro credit, Micro Credit etc.
o Long Term Loan: The tenor of this loan is more than five years. Here the fund is locked up for a long
period and hence risk exposure is higher than other term loans.
Continuous Loan: These are the revolving loans having no fixed repayment schedule, but have an expiry
date at which it is renewable on satisfactory performance of the customer. Here the customer avail the
loan facility continuously for a specific time period. And the customer can enjoy the facility at any time
with in the period. And also noted here that within stipulated limit he can enjoys the facility as much as
he desires. That’s why this loan arrangement is also termed as revolving loan. This is a very much
popular form of loan facility in the business community. Two most popular continuous loans are as
follows:
o Over Draft (OD): This is a loan arrangement between bank and customers by which the customer can
draw money from his account up to a certain limit as approved by the bank. This loan is usually for one
year time and renewable upon maturity.
o Secured Overdraft (SOD): Overdraft which is normally granted against the security of tangible assets such as
pledge/lien of FDR, bonds ICB unit certificate etc. are called SOD. Description of overdraft will depend upon
the nature and types of security charged to the bank.
o Temporary Overdraft (TO): Customers who maintain satisfactory conducted account may be accommodated
at their specific request to overdraw their balance in the current account to meet unexpected and urgent
requirements for credit facilities. The amount up to which overdrawing is permitted is dependent on the
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need of the customer, the previous conduct of his account with the bank and the turnover in the account,
average balance maintained etc.
Cash Credit (CC): This is an arrangement for meeting the firms working capital needs. Usually this loan is
provided to procure raw materials and to complete it in finished goods. Therefore usually the security of
this loan is the subject matter for which the loan is arranged for i.e. the finished goods stock. Some other
collateral securities are also may be kept for this facility. Cash credit depending on its nature classified in
the following types:
o CC Hypothecation: In this arrangement the possession of goods (subject matter of the loan) goes with
the client or borrower but the ownership is in bank’s hand. And client repays loan from the sales
proceeds by turn. Here primary security is the goods purchased by the sanctioned loan and secondary
security may be cash equivalent instrument or any mortgage property.
o CC pledge: Here ownership and possession of the goods, subject matter of the loan, lies with the bank.
And upon prior payment the client release goods from bank’s custody and sale accordingly.
Demand Loan: These are the non-revolving loans which are neither continuous nor fixed but have to be
repaid on demand. This loan is repayable by the borrower on demand. That means for this loan the
borrower is bound to pay back on demand of Bank.
Personal Loan (Consumer Credit Scheme): The objectives of this loan are to provide essential household
durable to the fixed income group (Service Holders) and other eligible borrowers. Car loan, loan for
house renovation, vacation loan, marriage loan and loan for household equipment well as
entertainment products are governed by personal loan program. The Total amount of loans along with
the duration in which these loans taken.
Credit Approval Process: the following are to be followed in the credit approval process;
A potential borrower collects prescribed Credit Application Form from the Relationship Officer of
Branch/Corporate Division, Head Office/Web address of the Bank. Later, he/she submits the filled
in Credit Application Form along with required papers and documents.
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The Relationship Officer scrutinizes the Credit Application Form and other documents
submitted by the customer and make a preliminary assessment on creditworthiness of the
potential borrower on the basis of the information provided by the borrower. Relationship Officer
collects further information from the customer if it is felt necessary. And, if Relationship Officer
finds the proposal not credit worthy, a refusal letter to the customer would be sent immediately.
On the other hand, if Relationship Officer finds the proposal acceptable within the parameter as
set by the Credit Policy and instructions issued time to time by Credit Department, Relationship
Officer will forward the application with his comments to the concerned Relationship Manager.
The Relationship Manager, singly or jointly with Relationship Officer, visit the customer’s business
premise and try to acquire proper understanding about the business position, business expertise
and reputation of the borrower, purpose of credit, actual credit requirement, sources of
repayment, etc. Besides, he/she negotiates with the customer about the structure of the
proposed credit facility to control the risks. Apart from this, he/she assesses the value of the
security to be offered and prepares Valuation Report. Finally, the Relationship Manager
summarizes all these information in the Pre-sanction Inspection Report/Call Report/Visit Report
in the Bank’s prescribed format in which he/she recommends for specific credit facility for
the customer. At the same time, The Relationship Officer, who is the primary bank contact with
the borrowers collects duly filled in “CIB Inquiry Form” from the customer and send the same to
the Credit Administration Department of Head Office to collect latest CIB Report from Credit
Information Bureau of Bangladesh Bank.
The Relationship Manager sends the Pre-sanction Inspection Report to the Corporate Division,
Head Office. The Head of Corporate Division or assigned Executive assesses the credit proposal and
may contact with the concerned Relationship Manager or directly to the customer for any query.
Finally, Corporate Division of Head Office communicates their decision to the Relationship
Manager.
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Credit Administration Department on receipt of the request letter from the Branch will send the
“CIB Inquiry Form” to Bangladesh Bank. Credit Administration Department will send the CIB report
immediately by facsimile/e-mail/courier service to the concerned Relationship Officer on receipt of
the report. Everything may be closed if adverse CIB report is received. In that case, letter of regrets
would be issued to the customer informing the reason accordingly.
If, clean CIB Report is received, the Relationship Officer originates a formal Credit Proposal in
prescribed format that should carry the recommendations of the Relationship Manager. After
signing by him, it is to be sent to the Corporate Banking Division, Head Office and a copy to the
Credit Risk Review Department of Credit Risk Management Division. It is to be mentioned here
that for renewal proposal, a certification of Credit Administration officer is required stating the
documentation status following existing sanction advice.
Corporate Banking Division, Head Office after modifying the proposal as required place the
proposal along with Head of Corporate Banking Division’s recommendation before the Credit
Committee. Head of Credit Risk Review Department of CRMD or his authorized representative may
report his observation in writing/verbally before the Credit Committee. Corporate Banking Division
should inform the list of proposals that are to be placed before the Credit Committee at least
15(fifteen) hours before to the Credit Risk Review Department of CRMD for smooth functioning of
the committee except the exception cases.
Credit Committee will analyze the proposal and if found viable recommend for approval to the
appropriate approval authority following discretionary power provided in delegation of credit
approval authority with their observations. If the proposal is endorsed by the Credit Committee,
Corporate Banking Division will prepare required Memo mitigating the weakness/risk factors and
incorporating the suggestion/observation of the Credit Risk Review Department as well as Credit
Committee for approval of the appropriate authority. The modified Memo should be routed through
Credit Risk Management Division for further scrutiny. On receipt of the Memo, Head of Credit Risk
Review Department will distribute to the respective Credit Officer to review, scrutinize and analyze
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in line with the business plan, risk acceptance criteria of the bank and general credit norms. Credit
Officer after evaluating the credit information, facility structure and risk factors summarize his
observations with reasons and forward for concurrence of Head of Credit. The Head of Credit may
contact with the Head of Corporate Banking Division for clarification/rectification on any issues if
required. Credit Risk Management Division may include covenants & conditions to control the
acceptable risk and verify the status of the observations of Credit Committee as well as Credit Risk
Management Division. If the final Memo is acceptable, risk is within tolerance level and facility
structure commensurate with the total facility, it will be recommended by Credit Risk Management
Division for approval. The appropriate approving authorities may approve the proposal if within their
respective delegated approval authority or decline the proposal or may ask for further review. If the
proposal exceeds Managing Director’s delegated authority, he/she recommends it to the Executive
Committee of the Board of Directors or to the full Board of Directors.
If the facility is approved by the appropriate approval authority, Corporate Banking Division will
send the copy of approval Memo/Note sheet to Credit Risk Management Division. On receipt of
approval, Credit Risk Review Department of CRM issues Sanction Advice to the originating Branch
along with a Documentation Check List preferably on the same date which clearly spells out what
is the documentation formalities required to be completed before disbursement. Copy of the
Sanction Advice is to be sent to Corporate Banking Division and Credit Administration Department.
Sanction Letter to the customer following Credit Risk Review Department of CRM sanction advice
to be issued under dual signatures from the originating Branch. Preferably, Relationship Manager
and Credit Administration Officer of the Branch should sign on the Sanction Letter.
Disbursement Process
Disbursement of a loan sanctioned by the competent authority shall be made after receipt of written
clearance obtained from Credit Administration Department of Head Office. The disbursement process
will be guided by some basic principles. These are:
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Separation of Authority: Relationship Department and Disbursement Authority shall be separate from
each other to minimize the risk. Relationship Department will market the products along with
preparation of credit proposal while Credit Administration Department will deal with disbursement of
approved credit facilities after completing all formalities as mentioned in the Sanction Advice.
Documentation Check List: While issuing Sanction Advice to the Corporate Division/Branch, the Credit
Division will enclose therewith a Documentation Check List in which documentation formalities will be
specified that to be completed by the Credit Administration Unit of the disbursing branch before any
disbursement to secure the credit facility. Documentation is obtaining such agreement where all the
terms and condition and securities are written and signed by the borrower. It specifies rights and
liabilities of both the banker and the borrower. In documentation each type of advances requires a
different set of documents. It also differs with the nature of securities. The documents should be
stamped according to the stamp Act. There are no hard and fast rules of documentation and it varies
from bank to bank. Generally, the documents are taken in the case of a secured advance by UCB:
o Demand promissory note
o Letter of arrangement.
o Letter of continuity.
o Letter of hypothecation of goods and capital machinery.
o Stock report
o Memorandum of deposit of title deed of property duly signed by the owners of the property with
resolution of Board of Directors of the company owning the landed.
o Personal guarantee of the owners of the property.
o Guarantee of all the directors of the company.
o Resolution of the board of directors to borrow fund to execute documents and completes other
formalities
o Form no. XVII/XIX for filling charges with the register of joint stock companies under relevant section.
o Letter of Revival
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o Letter of lien for advance against FDR.
Signing Documentation Check List: Relationship Officer is responsible for getting the document signed by
the customer and completing other formalities as per checklist. After completion of documentation
formalities as per checklist, the Branch will submit the same to the Credit Risk Administration
Department, Head Office, duly signed by the Relationship Manager (Head of the Branch) and
countersigned by the Credit Administration officer at the Branch seeking Disbursement Authority (In
case of credit facilities approved by Branch incumbent within delegated approval authority from
Managing Director, copy of signed Documentation Check List is to be sent to CAD, Head Office for
information). It is the responsibility of the Credit Administration Officer to verify the proper execution of
documents/security/collaterals before countersigning. However, both the signing officer will be equally
accountable for any lapses in documentation.
Deferral of Documentation: No credit facility is to be released for utilization, if requisite documentation
is not available or proper deferral approvals have not been obtained. If there is any inadequacy
in documentation as per sanction advice, the Relationship Manager shall have to seek temporary
deferral/waiver stating the reasons and specific time frame. Request of deferral will only be processed in
cases of extreme need, i.e., all reasonable attempts have been made to complete the documentation
prior to disbursements and have failed only because of unusual circumstances. Such temporary
deferral/waiver shall be approved by the Head of Credit Risk Management Division/Additional
Managing Director and/or the Managing Director depending on the issues. However whole
responsibility for removal of the inadequacy within the stipulated time shall rest with concerned
Relationship Officer/Manager and respective Credit Risk Administration Unit are responsible for
monitoring deferrals.
Disbursement Authority: All the approved credit facilities except the facilities approved under delegated
authority of Branch incumbent shall be disbursed only after having written disbursement
authority/clearance from the Credit Administration Department, Head Office. If there is any inadequacy
in documentation, the CAD Officer at Branch level will specifically mention it in the Documentation
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Check List / Certificate of Documentation and concern Relationship Manager/ Branch Manager will
mention reason behind the inadequacy and asked for temporary deferral with specific time frame along
with reasons behind for deferral. If the request is approved by the authority as mentioned in the
preceding paragraph, Credit Risk Administration Department will intimate the deferral of
documentation for specific time as approved and will issue disbursement authority to the
Relationship Manager/ Branch Manager. However, Branch will not disburse any facility without proper
documentation and if necessary, should obtain deferral approval from CAD, Head Office.
Facilities Approved by the Head of Branch: Loan against financial obligation or others under the approval
authority of Branch incumbent, if authorized by Managing Director, may be disbursed after completion
of documentation formalities and signing of the Documentation Check List by the Head of the Branch
and countersigning by the CAD Officer of the Branch. Limit will be input in the system by the CAD officer
independently to control the accounts.
Valuation: Valuation of assets charged to the Bank is a crucial function, as it has a direct bearing on the
amount of loss that the Bank might have to suffer in the event that the Borrower’s default. The method
of valuation employed, has to be appropriate to the nature of the assets. All valuations must be
supported with factual data, in order to qualify the collateral for credit value; valuator’s
estimates without supporting documents are not acceptable. Valuation should be conducted by an
enlisted Valuator of Bank’s choice. Where the exposure is not large, joint valuation by Relationship
Manager and another officer of the bank may be accepted since it will not be cost effective. Apart from
Valuators valuation independent valuation by Relationship Manager and another Officer should also be
carried out.
Legal Vetting: Mortgage documents should be properly vetted by the Bank’s Legal Counsel. He/she will
also certify that proper documentation, borrower’s legal standing and enforcement of securities are in
place. Finally, Lawyer’s Satisfaction Certificate shall have to be obtained regarding documentation where
there are securities/collaterals other than Personal Guarantee and Financial Obligation.
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File Maintenance: Maintenance of credit files is an important part of the credit process and is required
to determine whether or not credit extensions are based on adequate and complete information. Credit
files contain records of analysis and business strategy information submitted to the Bank by the clients.
Adequate system is required to be in place to restrict access to this confidential information to only
those personnel who are authorized to use it and maintain it. Each borrowing client should have
separate and independent file(s) and shall be maintained under the custody of the concerned
Relationship Officer of Branch and Credit Officer o f Credit Department, Corporate Banking Division and
Recovery Unit (Where applicable) of Head Office. Credit Administration Department will also maintain
independent files for each borrower where copy of Sanction Advice, acceptance of the borrower, signed
Documentation Checklist, Disbursement Authorization Memo, Deferral letter and other papers related
with CAD will be maintained. It is the responsibility of the concerned officer for proper filing of.
Sub Standard: The papers to ensure that required information is easily locatable and maintained in good
order. An officer who does not handle the file will have to take written permission from the higher
authority to have access to it.
Steps in Documentation Process
Step-1: The Relationship Officer of Branch is responsible for getting the document signed by the
customer and completes the formalities of mortgage with the help of bank’s legal counsel. The CAD
Officer stationed in Branch will scrutinizes and reviews each document and mortgage papers
independently as mentioned in the Sanction Advice. After completion of documentation formalities, the
concerned Relationship Manager signs the duly filled in Documentation Check List/Certificate of
Documentation sent by Credit Department of Head Office. CAD Officer countersigns the Documentation
Check List/Certificate of Documentation if found in order and sends it to the Head of Credit
Administration seeking disbursement authority and loading the facility in the system.
Step-2: All legal and banking documentation will be kept with utmost security in fire proof safe (vault)
separately from the credit file under dual custody. Documentation Check List should be maintained in
Credit File as well as in the Jacket of documents. Dual custodian and their alternates are to be
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nominated by the Credit Administration Department. Safe in /safe out register of documents is to be
maintained by Relationship Manager.
Step-3: If Credit Administration Department, Head Office found the Documentation Check List having no
discrepancy, Disbursement authority will be given to the concerned Relationship Manager/ Branch
Manager and CAD officer would load the limit in the system/database and limit is made available to the
customer for drawing.
Credit Monitoring Process
Credit monitoring and review is very important, because it ensures proper utilities and repayment of
Bank fund. Credit monitoring and review feature of UCBL is concerned was assessing the quality of
different type of loan. In classifying the loan and advance there are four classes in the loan review
practiced in United Commercial Bank Limited.
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2.2.3 FOREIGN EXCHANGE ADVANCE
The foreign exchange of a country refers to its import & export of merchandise from one to other
countries under contract of sale. Foreign trade can be easily defined as a business activity, which
transcends national boundaries. Trades among nationals are a common occurrence and normally benefit
both the exporter and importer. In many countries, international trade accounts for more than 20% of
their national incomes. Foreign exchange department of united commercial bank is responsible for
dealing with foreign trade affairs such as dollar endorsement, visa processing in some counties, buying
and selling of foreign currencies. One of the major activities of foreign exchange department is
processing of L/C (Letter of Credit).
Sell term & payment term in foreign trade:
Sell term Payment term a. Cash in advance b. Letter of credit c. Drafts d. Consignment e. Open Account
a. Cash in advance b. Documentary Letter of credit c. Documentary collection d. Open account e. Payment against goods & consignment
Cash in advance: involves maximum risk of exporter used where there are political unrest goods made to
order new unfamiliar customer.
Letter of credit: is a letter addressed to seller written & signed by buyer’s bank promising to honor
seller’s drafts. Bank substitutes its own commitment & seller must confirm to terms.
Essential document for opening LC
CD a/c
NID card
Trade license
Tin certificate
Vat certificate
IRC certificate
Proforma invoice
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Credit report of supplier
CIB report
Membership of Chamber & commerce
LC insurance cover note etc.
Chart of LC process:
Letter of credit can be classified into different types:
Revocable L/C: it can be cancelled or modified by the issuance bank usually at the will of the
buyer without prior approval of the exporter at any time before the document have been paid or
accepted.
Irrevocable L/C: it cannot be modified or rescinded by the opening bank without express
permission of all parties, including importer, exporter & intermediary banks.
Confirmed L/C: represent the obligation of confirming bank in the exporter’s locality, usually the
advising bank. It means the seller who has little confidence in or does not know the financial
strength of the foreign opening bank often request the confirming bank guarantees payment if
the issuing bank in exporters country is often.
Unconfirmed L/C: means that LC does not have any payment guarantee by the bank in the
exporters country.
Sight L/C: means that the payment is immediate paid to the beneficiary on presentation of the
documents & on condition that all the terms of the credit have been compiled with.
Importer/ LC applicant Proforma Invoice
Exporter/ Beneficiary
UCBL Beneficiary bank
Advising bank
Negotiating Bank
Reimbursing Bank
Acknowledgement
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Deferred/Usance L/C: means that the payment is to be paid to the beneficiary in a specific
number of days after presentation of the documents.
Back to back L/C: is the situation where the end user opens a L/C in favor of the importers, the
importers than asks his / her bank for a companion L/C to be issued to the supplier. Therefore,
the original L/C acts as the financial basis for the second L/C. Many banks do not look favorable
upon this type of financing of other options are available.
Draft: is unconditional order in writing showing exporters order for importers to pay at once or in future
including three functions is clear evidence of financial obligation, reduced financing cost & provides
negotiable & financial instruments.
Open Account: creates a credit sale to importers advantage more popular lately because major surge in
global trade credit information improved more global familiarity with exporting.
Documentary collection: There are two types of documentary collection;
PAD (payment against document): indicates that the buyer should pay the draft amount as soon
as he is presented the sight draft by the bank & pad after sight means the buyer will pay the
draft amount in a specific number of days after the time draft drawn by the seller is presented &
accepted.
D/A (Document against acceptance): indicates that the title document will be handed over to the
buyer once the buyer has accepted the usance draft drawn by the seller. Payment will be made
when the issuance period is due.
Consignment sales: are usually used as a way of expanding overseas sales & specially opening up
markets for new product.
Foreign remittance: Remittances have emerged as a key driver of economic growth and poverty reduction in Bangladesh.
Revenues from remittances now exceed various types of foreign exchange inflows, particularly official
development assistance and net earnings from export. Considering the role of foreign remittance in the
overall economic development of the country the bank has set top priority for mobilizing inward foreign
38
remittance from Bangladeshi migrant workers living and working abroad. The bank has restructured its
existing remittance set up with skilled and efficient manpower in order to provide seamless delivery of
remittances to the beneficiaries through Banks 139 branch network in strategic locations. Furthermore
the bank has also taken initiative to strengthen ties with the exchange companies with whom the bank
has arrangement with through strong relationship management and has also taken initiatives to enter
into new arrangements with other exchange companies having potential to send higher volume of
inward foreign remittance.
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3.1 SWOT ANALYSIS
SWOT analysis helps to identify organizations’ strength, weakness, threats and opportunity. After doing,
SWOT analysis on Jubilee Road branch, of United Commercial Bank. I have found these points.
Strengths:
UCB bank always gives priority to their client. For this they are always ready to serve the
customers and clients. So their customer satisfaction level is quite good which works as a
positive sign for UCB bank.
Centralized management system. This helps to reduce fraud.
UCB bank has completed its thirty years of journey. So it earns goodwill in the banking sector
which works as a strength for UCB bank to bring customers.
The bank gives highest interest rate for women savings deposit scheme.
It also gives special offer for student and women. For student and women they offer accounts
which offer zero maintenance cost, free cheque book and debit cards.
Membership with SWIFT.
Weakness:
STRENGTH WEAKNESSES
OPPORTUNITIES THREATS
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Sometimes it seems that because of centralized management system it takes time to take any
decision.
They are giving less interest rate on FDR and savings scheme compare with other private banks.
Throughout my internship period and talking with employees I found that employees’
dedication in work is low here in this branch as most of the employees are not satisfied because
of their salary structure and promotion process. As result most of the times customers are not
getting their desired service.
Their IT system is not that advance in this edge of 3G technology. Still they are running many
paper based work.
Manually voucher creating system.
Opportunity:
Reliable to local public
Flexible credit scheme.
They should introduce Islamic banking section.
They can start brokerage house.
They should develop their IT system and start SMS banking.
They should deduct their commission charge for online money transfer.
They should start mobile banking.
UCB can introduce internet banking service.
Threats:
Different attractive service of foreign bank.
Modern software used by the other competitive bank.
Political unrest & govt. regulations.
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3.2 FINDINGS
Lack of advertisement of the product & services of the bank.
To serve the customer quickly trained employee are needed. Insufficient trained employees are
not capable to provide better service.
Absence of modern technology so works delay and it does not compete with other Bank.
The loans and advance department takes a long time to process a loan because the process of
sanctioning loan is done manually.
In Advance Division they face the various problems to recovery the loan installment. The loan
installment does not realize in the proper time.
In the Foreign Exchange document systems are not moderns so employee wastes their time
for looking document for in time.
In Foreign Exchange Division their main problems is lack of manpower for that reason the
employee does not complete the job in time.
3.3 RECOMMENDATION
It is quite difficult to give suggestion to improve the banking conditions of UCBL. As we know that
nothing is perfect, yet, I have found during my internship can be made up taking into account the
following suggestions.
Offers more facilities to the customers such as Debit card, ATM booth etc.
General working conditions ought to be improved.
Should increase the number of computers as well printers with proper UPS facility.
Recording system should be computerized.
Upgrade service facilities comparing with the market.
The loan sanction process should be easier that the clients can feel convenient to take loan
from the bank.
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3.4 CONCLUSION
United Commercial Bank Limited is today’s one of the leading private banks in our country. After the
establishment it brought lots of new product and services for its clients and the progress of UCB is really
satisfactory in our banking environment. From a mainly feudal agrarian base, Bangladesh has undergone
a rapid economic structural transformation towards manufacturing and services. It is committed to
provide high quality financial service to contribute to the growth of GDP of the country and the growth
of industrialization, boosting up export, creating employment opportunity for the educated youth,
raising standard of living of limited income group and overall sustainable socioeconomic development of
the country. UCB always tried its level best to perform financially well. In spite of trying to do well in
some aspects UCB faced some financial problems from time to time. Some of the problems were-
excessive bad loans, shortage of loans and advances, scarcity of cash in hands due to vault limit etc.
These problems arouse time to time due to economic slowdown, interest rate fluctuation, emerging
capital market, inflation in the money market and so on. Fighting with all these problems and competing
with other banks every moment the bank is trying to do better to best. It is providing and maintaining
pleasant working environment for delivery of better quality services to maintain edge over the
competitors. At the same time it has been also found that United Commercial Bank Limited is
participating in the growth of our national economy with high quality, information technology driven
innovative services to its clients by its own dedicated team of professionals.