Chapter-1 Introduction

1.1. Introduction:

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I have completed my BBA program with a major in Finance. Internship program is a required for the students who are graduating from the School of Business from University of Information Technology and Sciences. I am interested about banking sector because it is a challenge and prestigious job in our country perspective. I was assigned to United Commercial Bank Ltd (UCBL) at Shantinagar branch on 04th November, 2012. In the internship program, I was attached to a host organization works with the help of the internal supervisor. As a result I have decided to make a report on general banking activities of United Commercial Bank Ltd (UCBL) at Shantinagar branch emphasizing the Plastic Money. 1.2. Origin of the Report: In todays world only academic education does not make a student perfect to become competitive in the business world. Thats why I have been involved in the internee program to gather realistic experience in the job field. In my report I tried to know how the bank performs with their client of United Commercial Bank Ltd. So I joined on 04th November, 2012 at United Commercial Bank Ltd (UCBL) and after three month on 04th February, 2013 my internship period has been completed. 1.3. Objectives of the report: Broad Objective: The main objective of the study is to gain practical knowledge of the related field as part of the partial requirements of BBA program. 1.4. Scope of the Report This report has been prepared through extensive discussion with bank employees and with the clients. While preparing this report, I had a great opportunity to have an in depth knowledge of all the banking activities practiced by UCBL. It also helped me to acquire a first hand perspective of a leading private bank in Bangladesh. The presentation of the strategic and organizational striven for the United Commercial Bank Ltd. and investigating the current marketing strategies applied by it - provide the scope of the report .The scope of this report is limited to the overall description of the company, it's service, and its banking practice. The scope of the study is limited to organizational setup, functions, and performances of its General banking and card division. Nevertheless, the regular clients of the Branch as well their services rendering to their clients are also included in the discussion.

1.5. Methodology:

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The informations of the report was collected both from primary and secondary sources. For primary information I took oral interviews of in charges, officers and clients of different departments. Discussion sessions were also taken. Secondary informations were collected from books, published report and annual report of United Commercial Bank Limited. The schedule provided by the United Commercial Bank Ltd. internship program for the practical deskwork was very effective for the planning and collection information. In the findings of the report data collected from researches and observation has been presented. Data Collection Process: 1.5.1. Primary Data:
Discussion with UCBL customers.

Face to face conversation with the officers. Relevant file study as provided by the concerned officers. 1.5.2. Secondary Data: Majority of the secondary data was obtained from
Annual reports of United Commercial Bank Ltd 2009, 2010 and 2011.

Relevant papers and different books. Manual of different departments of UCBL. Periodical publications. Web site of UCBL.

1.6. Rationale of the Study: Bank is the heart of the economics and banking is the blood circulation of the countrys economic growth. Banks perform a significant role to serve the needs of the society in the different sectors such as: capital formulation lager scale of protection, industrialization growth of tread and economies etc. Bank is contribution a lot of aspect. United Commercial Bank limited one of the largest and oldest private-sector commercial bank in Bangladesh. It provides mass banking service to the customer through its branch network all over the country. So I have tried to represent their performance and problems and prospects on the ground of general banking.

1.7. Limitations of the Study:

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I have been provided with all necessary information at United Commercial Bank Ltd. supplied by the manager's best abilities. But due to the exhaustive nature of this study not all informational requirement for an elaborate guidelines could be acquired from the company. Also due to time, resources and data constraint, I could not perform a rigorous survey to project the findings efficiently. The study has been conducted to make an investigation of the banking System. On the study in this field some problems were created that may be termed as limitations of the study. They are as follows:1. 2. 3. 4. 5. 6. The report has been conducted within a limited time frame. Large-scale research was not possible due to time constraints. Workload at my internee place was a great barrier to prepare this report. In many cases, up to date information is not published. Relevant information, papers and documents were not available sufficiently. Many procedural matters were written from own observation, which may also vary from person to person. 7. Due to the loss of confidentiality, some parts of the report are not in depth.

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Chapter-2 Profile of the United Commercial Bank

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2.1. Background of United Commercial Bank Limited

Due to inefficiency and continuous loss of public sector, the government of Bangladesh changed its policy in favor of privatizing and as a result a number of banks were launched in private sector. UCBL was one of them. UCBL is one of the oldest and leading commercial bank of the country. Sponsored by some dynamic and reputed entrepreneurs and eminent Industrialists of the country and also participated by the government, UCBL started its operation in mid 1983 and has since been able to establish the largest network of 130 branches as on 04th February 2013 among the first generation banks in private sector. UCBL was incorporated in Bangladesh as a public limited with limited liability as on June 26, 1983 and commenced its operation immediately after incorporation with due permission from Bangladesh Bank on 13th November 1983. As a schedule bank of the country the bank's activities are subject to the effective control, supervision and guidance of the Bangladesh Bank. The bank is listed with DSE and CSE as a publicly quoted Company.

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Oraganogram of UCBLChairman
Chairman

Vice

Chairman EC

Managing Director Deputy Managing Director & Company Secretary

Senior Executive Vice President Executive Vice President

Senior Vice President Vice President First Assistant Vice President & Head of Branch First Assistant Vice President

Assistant Vice President Senior Executive Officer Executive officer Senior Officer Management Trainee Officer Junior Officer Messenger

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2.2. Performance of the UCBL With its firm commitment to the economic development of the country, 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, aiming to play a leading role in the economic activities of the country, is firmly engaged in the development of trade, commerce and industry thorough a creative credit policy. 2.3. PRODUCTS & SERVICES OF UCBL:

UCB Multi Millionaire UCB Money Maximize UCB Earning Plus UCB DPS Plus Western Union Money Transfer SMS Banking Service Online Service Credit Card One Stop Service Time Deposit Scheme Monthly Savings Scheme Deposit Insurance Scheme Inward & Outward Remittances Import Finance Export Finance Working Capital Finance Loan Syndication Underwriting and Bridge Financing Trade Finance Consumer Credit Scheme Locker Service

2.4. Types of Customer of UCBL Government organization Bank and Financial Institution

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 Education sector like university Manufacturing firm Distribution organization Non Government Organization (NGO) Foreign organization Telecommunication 2.5. Forms of Customer: Retention : Existing Customer Acquisition: Loyal to other brand Development : New customer 2.6. Ownership Structure: The United Commercial bank is totally private organization but it has some share in share market up to 26% and 76% share is taken by owners by this bank. 2.7. Mission of United Commercial Bank Limited: To established banking through the introduction of welfare oriented banking system and also ensure equity and justice in the filed of all economic activities, achieved balanced growth and equitable development through diversified investment operations particularly in the priority sectors and development areas of the country To encourage socioeconomic uplift financial service to the lower income community particularly in the rural areas. 2.8. Vision of United Commercial Bank Limited: Its vision always strive to achieve superior financial performance is considered a leading bank by reputation and performance.
To establish and maintain modern banking techniques, to ensure the soundness and

development of financial system. Try to encourage saving in the from of direct investment. Be one of the best banks in the Bangladesh. To contribute in the socio-economies development of Bangladesh. To ensure optimum utilization of all available resource. To established relationship banking and improve service quality through development of strategic marketing plan.

2.9. Objectives of United Commercial Bank Limited: To strive for customer best satisfaction & earn their confidence.

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 To manage & operate the bank in the most effective manner. To identify customer needs &monitor their perception towards meeting those requirements. To review & update procedures & practices to enhance the ability to extend better service to the customers. To train & develop all employees & provide them adequate resource so that the customers needs are reasonably addressed.

Chapter-3 Profile & Activities of UCBL, Shantinagar Branch

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3.1. Overview of UCBL, Shantinagar Branch: United Commercial Bank Limited, Shantinagar Branch is situated at the Madina Heights, 32, New Circular Road, Siddeshwari, Ramna, Dhaka-1000. The bank is designed first & second floors. It has been providing banking service mainly for the customer of Shantinagar area. As well as UCBL is the online banking system so it providing all its customers, who are not accountholders of that branch. 3.2. Department of the Branch: Account opening department. Customer service department. Cash department. Credit/Advance department. Foreign exchange department. Clearing and Card department. Retail department. SWIFT department. 3.3. Number of Employees of the UCBL, Shantinagar Branch: SL. 01 02 03 04 05 Designation First Asstt. Vice President & Branch Manager First Asstt. Vice President & Operation Manager Assistant Vice President SEO Senior Officer Number of Employees 01 01 01 03 02

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06 07 08 09

Officer & MTO Assistant Officer Relationship Officer Staff Total =

04 07 06 03 28

3.4. Product & Service of UCBL, Shantinagar Branch: Deposit Modes: Fixed Deposit Double Benefit deposit Scheme Double Pension Scheme Monthly Deposit Scheme

Remittance: Pay Order Demand Draft Telegraphic Transfer Foreign Exchange Service: Express Money Money Gram Instant Cash SWIFT Service International Money Order

Investment Modes: Demand Loan (House Building/Apartment) House Building General House Building Commercial

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Agricultural Loan (Production) Lone to primary Procurers Lone for Tea Crop Production Term Loan Small Industries Medium Industries Large Industries

Export Financing Ready Made garments/others Jute production and others Commercial Loan Financing toward the Agro based Businessman Loan to Agricultural Inputs Traders Fertilizer Dealers/Distributors Jute trading

Others Loan Lone against FDR Lone against DPS Other Loans and Lease service: Over Draft Micro Credit Export Credit Import Credit Bills Purchases Loan on Security Loan on Secured Mortgage Payment Against Document Loan Against Imported Merchandise

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 Export Development loan Foreign Exchange Modes: FCAD Account (Foreign Currency Account Deposit) NFCD Account (Non Foreign Currency Account Deposit) RFCD Account (Residential Foreign Currency Account Deposit)

Chapter-4
General Banking Activates of UCBL, (Learning Part)
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3

4.1. General Banking: Organogram of General Banking Department Account opening Features of account Nature of account Transfer of account to other branches Closing of account Types of cheque Issue of cheque book Remittance Saving certificate Depositing Withdrawals Clearing

4.2. Organogram of General Banking Department Department in Charge: First Asstt.Vice President & Branch Manager

Section Cash & Computer Remittance Section

In charge Assistant Officer Assistant Officer

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Account Opening Section Bills Section

Assistant Officer Assistant Officer

BSP & PSP section, FDR& MTO BCD Clearing Section Assistant Officer

4.3. Account Opening: Banking business is very much correlated with banker customer relationship. To be a customer one person must have some sort of relationship with the banker. Account Opening section establishes this relationship by opening new accounts. United Commercial Bank Limited (UCBL) may open the following types of accounts and may receive the deposits in those accounts:
1. Current Deposit. 2. Savings Bank Deposit. 3. Fixed Deposit. 4. Short Term Deposit.

4.4. Key features of accounts in UCBL: 4.4.1. Current Deposit Account: Current Deposit Accounts shall be opened with a minimum amount of Tk. 1000/ but under special circumstances it may be opened with Tk. 500/. It is payable on demand. No interest is paid in these types of accounts. 4.4.2. Savings Bank Account:

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Minimum amount of Tk 500/ is required for opening this type of account. The account may not be retained if the balance falls below Tk.200/. Not more than one account shall be opened in one name. A depositor shall be allowed to withdraw per week up to 25% of the balance of his account. For calculation of interest the minimum balance at the credit of an account between the close of 8th in the beginning of the month should be taken into consideration.

4.4.3. Fixed Deposit Account:

Fixed deposit accounts are opened for a fixed period varying from three months to 1 year or above and are payable at a fixed date of maturity. Interest on this deposit is paid at the rate fixed by Head Office. From time to time depending on the period of maturity Interest is payable only at the maturity of the deposit.

The following table shows different FDR rates: Amount Up to 5000000 less than 10000000 10000000 & above For 3 months 10% 10.50% 11% For 6 months 10.25% 10.75% 11.50% For 1 year & above 10.50% 11.50% 12.75%

Source: FDR section of Head Office

4.4.4. Short Term Deposit: The deposits held in these accounts shall be payable on short time for 7 days or 30 days. The deposits may be accepted for period and rate of interest is fixed by H.O. from time to time. The STD interest rates in UCBL are 5%. 4.5. Nature of Accounts: UCBL may open following types of accounts: Individual Accounts Joint Accounts Proprietorship Firm Accounts Partnership Concerns Accounts

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4.5.1 General Procedures of Opening Accounts:

Savings Bank Account: The procedures of opening Current Deposit Account are applicable for opening Savings Bank Account with the following exceptions: 1. Separate Account Opening Register, Pay-in-slip Book are maintained 2. Separate SB cheque issue ledger is used.

Current Deposit Account:

1. The account opening form of current account and specimen signature card are supplied to

the customers, which is filled and signed by them. 2. In case of individual account, an account holder signs the Account Opening Form and Specimen Signature Card in his individual capacity both under Yours Faithfully and Specimen Signature. In case of Partnership firms & Proprietary concerns it is to be signed by persons/partners in their individual capacity under "Yours Faithfully" and in their official capacity under 'Specimen Signature'. In other cases (Pvt. Ltd. Company, Public Ltd. Company) both the signatures must be in official capacity. 3. A CD account holder of the bank shall introduce the account an elite of the locality well known to the banker can introduce it. Official other than staff of UCBL can also introduce it. 4. Clear instruction with regard to operations is noted in the AOF and SSC. Especially in case of death or inability of any of the joint account holder. 5. The officer in charge, Deposit Department, verifies the signature of the introducer. The stamp "Signature Verified is affixed near the signature of the introducer and deposit officer signs over it. 6. Approval of the branch in charge is obtained on the Account Opening Form. 7. The signature of the account holder is admitted by the in charge of deposit department, and "Signature Admitted" stamp is affixed near the specimen signature of the account holder. 8. A particular of the Account Opening Form is entered in the related register.

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9. The account number allotted to the new account is given on the AOF, SSC, and Cheque Book requisition slip. 10. The customer is supplied with Pay-in -slip Book and requested to deposit the money with cash officer. 11. Cheque is issued only after the Account Opening Form has been completed in all respects and initial cash deposit has been made. 12. The officer in charge initials in the related register. 13. AOF, SSC and Cheque Book Requisition Sleep are sent to the officer for entering new account informations in the database PC Bank. 14. The title of account and other particulars are entered in the CD issue register for issuing new cheque book.. 15. The opening of the account and the issue of chequebook in the ledger are authenticated by the officer by signing. 16. Account Opening form is posted in a file in serial orders. The specimen signature card is placed in the specimen signature card box in numerical order. 17. While issuing new Cheque Book, signature on the new Cheque Book requisition forms is properly verified. Fixed Deposit Account: Account Opening Form and Specimen Signature card shall be given to the customer and get them filled in and signed by him/her. A voucher crediting "Fixed Deposit Account " with the amount of deposit with full narration such as: the name of the party, period of deposit, and rate of interest etc shall be prepared and be given to the depositor to deposit cash with cash officer . In case of payment by cheque it shall be attached to the credit voucher and sent to the deposit department for posting and cancellation. On receipt of the voucher from the cash department a Fixed Deposit Receipt shall be prepared and entered in the Fixed Deposit Ledger. To admit the signature of the account holder the stamp 'Signature Admitted' shall be affixed near the specimen signature in the Account Opening Form and Specimen Signature card. The AOF, SSC, the ledger and the voucher shall be sent to the officer in charge for signature. The in charge shall sign the receipt and initial the ledger verifying the authenticity of the voucher.

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Then the documents shall be sent to the Manager /Authorized Official for his signature on the receipt and across the stamp 'Signature admitted' on the Account Opening Form, Specimen Signature Card, and the related voucher. The branch manager shall ensure that the printed number on the deposit receipt form and in deposit receipt book in use are invariably noted in the respective ledger in advance. Required entries are posted in the database. 4.6. Transfer of account to other branch: The account holder requests to transfer his accounts by giving the following instructions. 1. Reasons for transferring the account 2. Address at which he is to be contacted by the. transferee Branch 3. The unutilized chequebook will be returned to the transferring branch before transfer of the account. After verification, the approval of the manager to transfer the account is obtained and then the specimen of the forwarding letter of transferee branch will be sent. After the application is received duly approved from the manager, the branch transfer the account based on the following entries:

4.7. Closing of an account: To close an account, party may be requested to send an application along with the unused leaves of the Cheque Book issued to him. After receiving the application the signature of the account holder shall be verified and the number of unused Cheque Leaves should be noted. 4.8. Types of Cheques: A cheque is a very important document. A cheque is always supposed to be drawn against the funds in the party's account in the bank. It may be crossed for safety. Types of Cheques that this bank deals in are shown in a flow chart:

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Barer Cheque

CHEQUE Order Cheque

Other Cheque

From 6 months up to 1 year

Travelers Cheque Stale Cheque Antidated Cheque Postdated Cheque

Cross Cheque

4.9. Issuance of a Chequebook:

1. Separate registers are maintained for issuing CD/CC accounts Cheque Books of 25, 50 and 100 leaves and SB account Cheque Books of 10 leaves. 2. At the time of opening of an account, the customer is required to sign a Cheque Book Requisition Slip .If the account opening form is found complete in all respects, a Cheque Book is issued to the client. Also new chequebooks are issued to the account holder verifying his/her signature in his used chequebook. 3. The account number is written in each leaf of the Cheque Book and in its requisition slip. 4. The name and account number of the customer is also entered in the register against the particular Cheque Book series and it is also recorded in the database. 5. The requisition slips should be preserved as Vouchers.

4.10. Remittance: There is some frequent situation; customer of a bank needs to transfer his fund or money to somewhere within the country boundary. It is really a risky thing to carry the money and is costly as well. What they do, just purchase an instrument so that his/her fund can be transferred through his/her own bank. These short of activities are taken under inland remittance. Inland Remittance:
1. Demand Draft (DD)

2. Telegraphic Transfer (T.T.) 3. Pay Order (P.O.) Now I shall discuss briefly about Pay Order (P.O).which is used more in Bank.

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Pay Order: Pray Order is an instrument, which is issued from a certain branch of a bank and must be cashed from the same branch. It is like the cash but exactly not the cash. One who is maintaining an account with UCBL, brunches can purchase a pay order; it is more liquid than cash. It is used for remittance purpose within the clearing area covered by the branch. Issuing Procedure: Against Cash: The customer is asked to complete an application form, which is treated as credit voucher. Commission is charged and a voucher is prepared crediting Income Account Commission. After receiving the voucher from cash section duly signed by the cash office, the Pay Order slip is filled up according to the voucher. The no. of the PO slip is given in the voucher. The number of the PO slip and the name of the payee are entered in the pay order register. PO along with the voucher and the register are sent to the officer in charge for checking and signatures. Against Letter of Instruction: The letter is sent to the deposit department for verification of signatures, other procedure is similar that was explained in pay order against cash. The following table shows charges on issuing Pay Order:

Amount Tk(up to) 50000 100000 500000 Over 500000 Payment of Pay Order:

Charges Tk 70 78 82 90

When a customer submits a PO for encashment the following procedures are done: It is authenticated comparing its particulars with the PO Register. If the Particulars matches with those mentioned in the PO register, date seal is given in the specific cage of the register. After that it is sent to the authorized office for verification along with the register. If the authorized officer finds it genuine he signs over it and sends to the cash counter for payment if the party wants cash payment.
4.11. Depositing:

Deposit may be done by cash, cheque or clearing. Clearing will be discussed later in this part. Procedure of deposit by cash: 3

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1. Pay-in -slip or credit voucher for CD accounts and customers fill in SB accounts and they are then sent to the receiving cash officer for depositing the money. 2. The customer goes to the Cash receipt counter and submits it to the receiving cash officer .The officer checks the title of the account, its number, amount in words and figures. 3. Receiving cash Officer receives cash duly counted and checked and enters the particulars in the Receiving Cash Book. 4. After that he gives it to officer entering related informations in the database of the computer and then he gives initials on receiving cash book. In this case party's account is credited. 5. Then he affixes the Cash Received stamp on the credit voucher. 4.12. Withdrawal: Procedures of withdrawals of cash through cheques, DD, Pay Order are discussed below:
1. After a bearer of an instrument comes to the cash counter for withdrawal of money, he

with his instrument is sent to the officer for signature verification. If the signature is authentic the verifying officer makes entries in the database of computer. After entering the account number in the computer, the computer shows the particulars of the customer's account including current balance. If there is available balance, the computer operator debits the customer's account and affixes "POSTED" and "PAY CASH" seal on the instrument and sign in the specified place on the instrument. 2. Then he sends back the instrument to the cash counter for cash payment.

4.13. Clearing: When a customer of UCBL presents an instrument drawn on other banks for collection, the instrument is collected through clearing house of Bangladesh Bank .UCBL takes part in the clearing function of its branches functioning inside or outside of Dhaka city. The instruments are sent to those banks through clearing arrangement. Every day two houses are arranged; one in the morning and another in the evening. The evening house is known as return house. Everyday instruments drawn on different banks are sent to the clearing section of a branch of UCBL from other branches of it. The officers of the clearing section enter bank name, branch name, number, and amount through NTKASK 22 software in the main schedule of Bank. They transfer the particulars of those instruments in a Flash Drive.

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At 9.30 am the concerned officer of clearing section goes to the Clearing House of Bangladesh Bank to take part in clearing function. He gives the floppy disk containing those entries to Bangladesh Bank officials. They insert the flash drive in the computer and set off the claims of UCBL on other banks. Every bank has an account with Bangladesh Bank.

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Chapter-5 Plastic UCBL Money of

5.1. Plastic Money: Plastic money is the alternative to the cash or the standard 'money'. Plastic money is used to refer to the credit cards or the debit cards that we use to make purchases in our everyday life. Plastic money is much more convenient to carry around as you do not have to carry a huge some of money with you. It is also much safer to carry it along or to travel with it as if it is stolen one can consult the bank whose service you are using and get it blocked hence saving your money from getting stolen or even lost. Nowadays even developing countries like India are encouraging the use of this plastic money more than cash due to these reasons. Furthermore these credit and debit

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cards also have plastic used in their making and that is where the name 'plastic money' has originated from. There has been a growth on electronic payment due to the shift in technology, growing access to internet among the customers and convenient modes of delivery and payment. Plastic money also known as Plastic cards acts as a vital tool for every day transaction of people today.

5.2. Types of Plastic Cards:

Credit Cards Debit Cards Payment / Pre-Paid / Electronic Purse Cards ATM (Automated Teller Machine) Cards Store, Budget or Option Cards Charge Cards Gift Cards etc.

5.3. Introduction of Plastic Money in Bangladesh: The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners Club and American Express. Credit card however became more popular with use of magnetic strip in 1970. Credit card in Bangladesh became popular with the introduction of foreign banks in the country. Although credit card was introduced in Bangladesh in 1997 by a local bank namely National Bank. There are thirteen banks and one financial institution issuing Credit Cards in Bangladesh. They are-Standard Chartered Bank, National Credit & Commerce (NCC) Bank, Shahjalal Islami Bank Limited Premier Bank, Prime Bank, Arab Bangladesh (AB) Bank, Dhaka Bank, Southeast Bank, National Bank, The City Bank, United Commercial Bank, Mercantile Bank, EXIM Bank, One Bank and Lanka Bangla.

5.4. Effects of Plastic Money: 5.4.1 Positive effects:

1.

Purchasing Power: Credit or Debit cards made it easier to purchase things. Now we dont have any need to carry hard cash in a large amount. Plastic money is accepted everywhere, anytime.

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2.

3.

4.

5.

6.

Time Saving: Through a credit card or debit card you can purchase anything from anywhere without spend money on fare or cash transition. Just provide your card details to seller store or companies and finalize your order. Now you dont have need to worry about time wastes. Use internet for minimum time consuming. Extra Safety: While you are not carrying cash, how can it be lost? But if your card has lost, just contact to your bank or financial institution, which provide you cards. It will block the account and nobody can draw a single coin without your permission. So it is 100% safe without any tension. Credit Limits: You get an extra amount to spend with your card. This extra spent money you can return before a fix time schedule or you will have to pay a little interest. So there is no problem to having less money. Just use money without any tension and A need of emergencies: Think, that you have no time to go to bank or someone to get money, what will you do? Definitely you will use your credit or debit card which will give you confidence for your difficult time. We can say it a true friend which help us in need. Additional features: Mostly credit card offer additional benefits, as discount from some particular stores, bonus in airline fare, free insurance policies and much more. This discounts and bonus encourages you to purchase more things as it is good for us.

5.4.2. Negative effects:

Over Budget: Plastic money gives us an easy and extended purchasing capacity which results in an extra and unwanted buying. These cards give us discounts and bonus also on particular stores or items, which encourage us to get them and we use our hard earned money for a non-required thing, which affects our budget and we cant handle our monthly budget system.

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Increased Debt and High Interest Rates: Credit Card provider financial institutions and companies charge high interest rates (may be 10% to 25%) on extra money if you fail to pay off up to the fix date of the month. This interest is their earning, for which they give you extra buying limits then your money. This is not a good idea that you owe loan on high interest rates and spend it in unnecessary things or purchasing. This is complete money wastages. Fraud: Credit cards can be stolen. A thief may be use them directly or to get their information (which is required in money exchange). In todays technical intelligence it is also possible to get a clone of any credit card or debit card, which works like original and they can be give you a heavy financial loss. So be aware from credit cards fraud as they are like stolen your money from your pocket without your information.

5.5. Plastic Money in UCBL: United Commercial Bank Limited, the leading first generation private sector bank has introduced global brand VISA credit card through a befitting manner in Dhaka Sheraton Hotel on 12th April, 2006. Dr. Fakhruddin Ahmed, former Governor, Bangladesh Bank attended the function as chief guest and inaugurated the launching ceremony of UCB Credit Card. UCB will issue dual currency credit card which will have transaction capability both locally and internationally. Customers will also be able to withdraw cash from ATM globally using their credit card. Mentioned that dual currency credit card is very recently introduced in credit card market of our country. UCB Card will bear the following distinct features: 1. Truly global - Locally & internationally transact able with the same card 2. Higher coverage of acceptance globally in POS terminals & ATMs. 3. Latest & best quality product but lowest in price (annual fee) in the market. 4. Reward point for spending leads to winning of attractive prizes. 5. Choice of colors in Classic (Silver) products 6. Credit Card for ladies very new in Bangladesh

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5.6. Fees & Charges of UCBL Visa Card:

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Chapter-6 Findings Analysis and

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

Threats Threats

Strengt Strengt hh

SWOT SWOT Analysis Analysis

Opportun Opportun ity ity

Weakne Weakne ss ss

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Strengths: 1. Company Reputation 2. Sponsors 3. Leadership 4. Top management 5. Market share profitability 6. Strong financial resources 7. Facilities and Equipment 8. Impressive Branches 9. Interactive Corporate Culture 10. Team work at mid level and lower level 11. Relatively less intervention from the Board of Directors compared to other banks. Weaknesses: 1. Advertising and Promotion 2. Poor Recruitment 3. Reference appointment 4. Disguised Employment 5. Low remuneration package 6. Human Resources Department 7. Lack of qualified system operators and computer operators 8. Few staff meetings Opportunities: 1. 2. 3. 4. 5. 6. 7. Diversification Product line proliferation Credit Cards and Tele banking Introduction of corporate scheme Separate schemes for service holders Retail Banking. Scope of market segmentation though diversified products

Treats: 1. 2. 3. 4. 5. Multinational Banks Upcoming Banks Contemporary Banks No new deposit creation Default culture

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6. Lack of appeal to younger, student potential customers. 5.2. Competitive Analysis of plastic money: There are thirteen banks and one financial institution issuing Credit Cards in Bangladesh at present. They are-Standard Chartered Bank, National Credit & Commerce (NCC) Bank, Premier Bank, Prime Bank, Arab Bangladesh (AB) Bank, Dhaka Bank, Southeast Bank, National Bank, The City Bank, United Commercial Bank, Mercantile Bank, EXIM Bank, One Bank and the NFB is Lanka Bangla. BRAC Bank is going to launch its credit card within a very short time. Among all these banks, Standard Chartered bank is the market leader in credit card market. In fact Standard Chartered was the bank that made this product very popular. There is a competitive analysis of the card market is given:

Serial NO. 1 2

Bank. Financial Institution or No. of Credit No. of Debit Total Payment consortium cards cards cards BRAC Bank Ltd. Standard Chartered Bank 145000 130000 135000 145000 290000 275000

No.

of

3 4 5 6

National Bank Ltd. Premier Bank Ltd. United Commercial Bank Ltd.

11000 20000 25000

11000 20000 35000 20000

22000 40000 55000 40000

Prime (MasterCard)including 20000 Exim & HSBC City Bank Ltd. Dutch-Bangla Bank Ltd. 3000 10000

7 8

3000 10000

6000 20000

Eastern Bank Ltd.

10000

10000

20000

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The table above it is evident that in Credit card market the market leader is BRAC Bank and in Debit card market the market leader is Standard Chartered Bank. Below the competitive positions of different banks in debit card and credit card market are shown by pi-charts:

Debit card market the market leader is Standard Chartered Bank. United Commercial Bank is the 3rd position.

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In Credit Card market the market leader is BRAC Bank. United Commercial Bank is the 3 rd position also.

5.3. Implication of the plastic money over the economy of Bangladesh:

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Plastic Money business is definitely going big time in Bangladesh. More and more local and international financial institutions are exhibiting enthusiasm in this direction. It reflects prospects in Bangladesh market in accommodating numerous credit card competitors operating on the circuit, ensuring healthy and competitive card business deals. In addition to credit cards, debit cards are now being introduced in Bangladesh. Money spent using these cards are deducted automatically from a bank account. Carrying wads of cash for a weekly or monthly shop is risky and not having enough when you get to the till is embarrassing. Those days are gone when we had to carry loads of cash and plan our shopping sprees. To keep their money secure is an age-old problem. The 21st century solution is plastic. Today credit and debit cards have largely replaced cheques as alternatives to cash. Both are reasonably secure compared to cash and are widely accepted. Credit cards are financial instruments, which can be used more than once to borrow money or buy products and services on credit. Basically banks, retail stores and other businesses issue these. In addition to credit cards, debit cards are now being introduced in Bangladesh. Money spent using these cards are deducted automatically from a bank account. Debit cards in particular are rapidly growing more popular. In fact debit cards look like credit or ATM cards, but work like cash or a personal cheque. By definition you can't run up credit on a debit card; you must have money in your account. In short they offer you the transactional convenience of a credit card, without a credit facility. According to Mohammad Anisur Rahman, officer of National Credit & Commerce (NCC) Bank, "a credit card has many advantages that make it preferable to paper money in many countries. The expansion of credit facilities holds great promise for spurring the growth of the Bangladeshi economy and pulling it out of recession." The growth of credit cards has had an enormous impact on the economy-changing buying habits by making it much easier for consumers to finance purchases and by lowering savings rates (because consumers do not need to save money for larger purchases). The good news, if there is any, is that you aren't alone. Credit card debt can sneak up on anyone quickly, but if you don't get it under control right away, it can be quite detrimental to your financial future. It really isn't as hard as you might think; it just takes persistence and dedication. Here are some tips to get you on your way to being debt free.

6.4. Findings:

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The success of a bank depends on improved service delivery to its customers. Now a days many banks in the country have emerged to cater to the needs of customers. But most of the banks in Bangladesh are using conventional Banking system. UCBL, Shantinagar branch is not exception to these trends. While working on desk to desk, I had the following findings during my Internship: General banking, Foreign Exchange, Plastic Money Related:
1. According to some clients opinion introducer is one of the problems to open an account.

If a person who is new to the city wants to open account, it is a problem for him/her to arrange an introducer of SB or CD account holder. 2. UCBL seeks credit report in case of loans and advance over five lacks of taka, where other banks seek the CIB in case of sanctioning loan over ten lacks of taka. This indicates a strong point in case of loan disbursement 3. Branches should be well decorated, as it is important for a banks image to customer now a day. 4. The total sitting arrangement for waiting clients and also for the employees is not satisfactory 5. The number of employees engaged in rendering services is insufficient. 6. Branches yet maintains Transfer register, which I think only waste of time. 7. There is no specific lunch break at the branch, so it creates problems for both employee and customers. 8. Branches yet maintains Transfer register, which I think only waste of time. 9. Maintenance, downtime, card error and networking problem. 10. Limited ATM booth. Computer Based Information System Related: 1. The bank has launched ATM, credit card system but there are very few booths available. 2. UCBL has started on- line banking but they only do it between their branches. 3. Pc Bank 2000 the software for database, UCBL is maintaining has options for preparing any bank statement. 4. Lack of resources of network like printers, more computers. 5. Lack of security as using Flash Drive for banking transaction information transfer from branch to head office or Bangladesh Bank.

6.5. Recommendation:

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1. Banking is a service-oriented marketing. Its business profit depends on its service quality. Thats why the authority always should be aware about their service quality. 2. To provide quality service to the customer it is necessary to have a trained team in the organization or an institution. For this reason the bank should recruit more fresh, bright and energetic persons such as BBA, MBA, MBM etc. professional degree holders. 3. The office should be well decorated because when a customer enters the bank, he / she should feel comfortable and take the bank in his confidence. It also boosts efficiency of the officers and staff and instills in them a sense of discipline and cleanliness. 4. UCBL should increase the no. of computers, printers in the network. 5. Bank should offer more facilities to the customers such as ATM machine & booths etc. 6. Supplementary should be confirmed with the vouchers at the time of posting and at a time should be printed. No transfer register should be maintained. This will help the employees to spend more time in other customer services with just time service. 7. Though they have started online banking but they should quickly start banking between banks to banks. 8. As soon as possible the bank should launch more branches in Dhaka city as well as in other cities of the country. 9. One of the business strategies is promotion. Successful business depends how they can promote their products or services to the customer. In this connection to improve the business status bank should introduce more promotional programs such as advertising attractively their facilities, which could increase banks deposit, clients, and customers. 10. In addition with the present services they should include more services. It is badly needed to provide more services to the customer in order to compete in the market. 11. As the clients are not in favor of introducer system that currently present, if possible the rule of introducing to open an account should be changed. Because many people face in problem to arrange an introducer in the time of opening accounts. 12. The loan sanction process should be easier that the clients can feel convenient to take loan from the bank. 13. Delegation of authority should be made enough to make the speed of providing service fast. 14. The bank should use enough close circuit camera for its safety.

6.6. Conclusion:

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The importance of sustaining and improving bank performance is increasing day by day. Particularly in an environment which is characterized by rapidly flourishing technology and its growing application to banking, tremendous competition, product development, shift in marketing strategy, deregulation & globalization on the one hand, and escalation in the number of bank failures accompanied by mergers and mega mergers on the contrary. In order to keep abreast with the prevailing market scenario United Commercial Bank Limited has already strengthen its position in the industry. The Bank has grown well in its 30th year of business, expanded its coverage of financial products and customer segments and enhanced its service capabilities across multiple channels. The result achieved by the Bank reflects that it claimed to even higher operational height despite stiff competition. To be a leading private sector bank United Commercial Bank Limited has to apply some new dimensions in its customer service & its products and services. Otherwise, it would be quite hard for them to keep their business position in competitive market industry because without pure satisfaction from the customers no one can last longer in the market. Existing customer hopes better future of United Commercial Bank limited by providing best services.

Bibliography:

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Website: www.ucbl.com Annual report 2009-2010-2011 www.scribd.com/doc/33443896/Plastic-Money www.scribd.com/doc/102536198/BRAC-BANK-from-Salehin www.Bdpapers.com www.Onlinepapers.com www.playdesk.net/signup www.slideshare.com

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