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Prepared By:
Neshat Akter Liza
ID: 07-028
Department of Management Information Systems
University of Dhaka
Prepared For:
Dr. Md. Abdul Hannan Mia
Professor
Department of Management Information Systems
University of Dhaka
Letter of Transmittal
To
Dr. Md. Abdul Hannan Mia
Professor
Management Information Systems
University of Dhaka
Sir,
It is my great pleasure to submit the internship report titled GENERAL
BANKING ACTIVITIES OF UTTARA BANK LTD. which has been
prepared as an integrated part of the course requirement of my BBA
program. My internship was held at Uttara Bank Ltd, General Banking
Department, Malibagh Branch.
It will be highly appreciated if you kindly accept the report. Your positive
action about this matter would be very much helpful for my academic
career. If you need any additional clarification or information in interpreting
this analysis, I will be glad to answer your queries.
Sincerely yours,
.
Neshat Akter Liza
ID- 07-028
Management Information Systems
University of Dhaka
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Declaration
Internship Report
I further affirm that the work is original and the report has not been
submitted by any other students for the completion of BBA or other degree.
.
Neshat Akter Liza
ID- 07-028
Management Information Systems
University of Dhaka
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Supervisors Declaration
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Acknowledgement
Now I would like to thank my academic supervisor Dr. Md. Abdul Hannan
Mia, Professor, Management Information Systems, University of Dhaka for
his untiring guidance, help, effort, and suggestion. Without his direct
guidance this report couldnt be possible. A forbearing personality, Dr. Md.
Abdul Hannan Mia, constantly inspired me to make the report better and
share his knowledge with me. I shall remain ever grateful to him for his
amazing gesture and relentless effort.
I would also like to thank the authority of Uttara Bank Limited for giving me
the opportunity to work in such wonderful working environment.
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Executive Summary:
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1. Introduction:
Banking is one of the most competitive industries of Bangladesh that has
been a huge amount of growth during the last decade. Banking
organization has become essential for almost every person to deal with
banks somehow in their bread & better life. As a result, bank has become
essential for every person to have some idea on the bank and banking
procedure. If we want to build our career in banking area only theoretical
knowledge would not help us. As internship program is established to
gather practical knowledge regarding various sector of economy, I choose
to get practical knowledge regarding banking sector and I select Uttara
Bank as my organization to work which is the leading bank in the private
banking sector.
1.6. Methodology:
The methodology of the study required data at first. This methodology was
chosen to provide an initial rapid assessment of this complex and dynamic
sector. Basically, this is a theoretical study. But there are some quantitative
information incorporated to pin point the reality. Throughout the study
several subjects are highlighted requiring future study. The methodology of
the report includes direct observation, oral communication with the
employee of all departments of Uttara Bank Limited Malibagh branch.
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Data availability is another big issue here because company was not
willing to disclose few the confidential information regarding their
managerial strategies and plans.
I have no previous experience which is hampered my work
They do not use modern equipment to record the database regarding
the customer and client.
The website of the bank is not that much rich to collect data.
As the data was collected through the surveyor, it might hamper the
data validity and reliability.
Even though there are some limitations, I tried my level best to collect
adequate data and information to make the report meaningful.
2. About UBL:
The prosperity of country depends on its economic activities. Like any other
sphere of modern socio economic activities, banking is an powerful
medium of bringing about socio economic changes of a developing country.
Without adequate banking facilities agriculture, commerce and industry
cannot be flourished. A suitable developed banking system can provide the
necessary drives for the economic growth of the country. Because banking
system is linked with the whole economy of the country.
pension accounts, and foreign currency accounts. The bank loan and lease
services are composed micro credit, SME financing, industrial loans,
working capital financing , export credit , import credit, bill purchase, letter
of credit, letter of guarantee, lease financing, transport financing consumer
loan schemes and house building loans. It also offers various remittance
services including remittance of fund from abroad to Bangladesh.
Corporate Office
Regional Office
Worldwide Affiliates
Total Branches
Authorized Dealer Branches
Treasury & Dealing Room
Training Institute
Man Power
2
12
600
227
39
1
1
3562
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Local office,
Eastern Plaza branch,
Hotel Isakha branch,
Dar-us-salam road branch,
Lease financing unit in Eastern Tower Building,
Training institute of the Bank at Eastern plus (145, shantinagar),
Dhaka,
Nabagram branch in Manikgonj,
Zonal office and KDA branch in Khulna and Shaheb Bazar branch in
Rajshahi.
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2.4.3. Goals:
Uttara bank will be the absolute market leader in the number of loans given
to small and medium sized enterprises throughtout Bangladesh. It will be a
world-class organization in terms of service quality and establishing
relationships that help its customer to develop and grow successfully. It will
be the bank of choice both for its employees and its customers, the model
bank in this part of the world.
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operate around the globe. The organizational structure of Uttara Bank Ltd.
is as under:
Chairman
Vice Chairman
Directors
Managing Directors
Additional Managing Director
Deputy Managing Director
Executive General Manager
General Manager
Deputy General Manager
Assistant General Manager
Senior Principal Officer
Principal Officer
Senior Officer
Officer G-II
Assistant Officer
Figure: Organizational structure
Personnel Department
Disciplinary Department
Test Key Department
Research & Planning Department
Risk Management Department
Account Department
Reconciliation Department
Approval Department
Admin. & Monitoring Department
Lease Finance Department
Recovery Department
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Board of Director:
Azharul Islam
Mr. Iftekharul Islam
Mr. Syed A.N.M. Wahed
Engr. Tofazzal Hossain
Mr. Asif Rahman
Mr. Faruque Alamgir
Mr. Md Arif Rahman
Col .Engr.M.S Kamal
Mr. Abul Barq Alvi
Dr. Md. Nazmul Karim Chowdhury
Mr. M. Tajul Islam
Mr. Md. Kamal Akhtar
Dr. Md, Rezaul Karim Mazumder
Mr. Shaikh Abdul Aziz
Chairman
Vice Chairman
Director
Director
Director
Director
Director
Director
Director
Director
Director
Independent Director
Independent Director
Managing Director
General Banking
Different account
open, issues of DD,
TT, PO
Clearing, FD,
Differnt Scheme etc
Credit and
Advance
SOD general Loan,
House building loan,
Lease finance
Staff loan,CCS etc
Foreign exchange
Export/Import
Remittanc
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Designation
Number of
employee
Senior Principal Officer 1
& manager
Deputy manager
1
Principal Officer
4
Assitant Officer
3
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5.
6.
7.
Senior officer
Officer (Grade-2)
Staff
Total
2
3
6
20
Deposit
modes
Service
Product
Loan &
Advance
Remittance
Deposit Modes:
Fixed deposit
Double benefit deposit scheme
Deposit pension scheme
Monthly deposit scheme
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Pay order
Demand draft
Telegraphic Transfer
Mail transfer
Service:
Money gram
Instant cash
Express money
SWIFT service
Demand loan
Term loan
Commercial loan
Other loan
laundering, they have to tell about their money sources and face various
types of question.
Accepting deposit
Opening of account
Cheque book issue
Transfer of account
Closing of account
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Sving Bank
Account
Fixed
Deposite
Receipted
Account
Depository
product
Current
Bank
Account
Short Term
Deposite
Current Account:
These types of account can be opened by both individual and business
concern. A current account holder can draw cheque on his account for any
amount for any number of times in a day as the balance in his account
permits. When the amount is large than the account holder may be remind
it a few days ago. This account provides no interest. The minimum balance
to be maintained is Tk 2000/-.No new account can be opened with a
cheque.
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Saving Account:
Individual for saving purpose open this type of account. Current interest
rate of this account is 3.50% per annum. A minimum balance of Tk. 1000 is
required to be maintained in a SB account interest on CB account is
calculated and accrued monthly and credited to the account half yearly
Interest calculation is made for each month on the basis of the lowest
balance at credit of an account in that month. A depositor can withdraw
from his SB account not more than twice a week up to an amount not
exceeding 25% of the balance in the account.
Any Bangladesh National residing home or abroad may open saving
account with UBL.
This account may be opened in single or joint name
The account holder may nominate his nominee in this account.
The nominee can get the balance amount without submitting succession
certificate after the death of account holder.
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Opening procedure:
For opening such A/C, application prescribed from along with a set of
specimen signature duly verified by Bangladesh mission abroad or by a
reputable bank of any other person known to the bank, should be obtained
by the brandies. In case of persons, already maintain any F.C A/C or
N.F.C.D. A/C with them, reference to that F.C A/C will serve, the purpose of
introduction, the branch may verify the signature from the specimen
signature and already available with them. Only one such F.C A/C can be
maintained and the balance in the A/C should not exceed $ 30,000/- or
equivalent pound sterling at any one time. The A/C holder is also required
to submit photocopies of passport, visa and work permit/contract. As this is
a current account no interest is paid to the A/c holder.
months, 6 months and 1 year. This A/Cs can be opened either in US dollar
or pound sterling. No interest is paid in case of premature encashment.
Interest on Deposits
Particulars rate of interest:
Deposits
Saving deposits
Interest Rate
3.50%
5.00%
5.00%
Fixed Deposits
(6 months)
5.00%
5.00%
5.00%
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Monthly
Installment
size (tk)
Period
(Years)
500
1000
2000
5000
10000
15000
20000
25000
30000
2
2
2
2
2
2
2
2
2
Amount
payable
on
maturity
(tk)
13192
26385
52770
131924
263849
395773
527698
659622
791547
Monthly
Installment
size (tk)
Period
(Years)
500
1000
2000
5000
10000
15000
20000
25000
30000
3
3
3
3
3
3
3
3
3
Amount
payable
on
maturity
(tk)
20731
41461
82923
207307
414614
621920
829227
1036534
1243841
Monthly
Installment
size (tk)
Period
(Years)
500
1000
2000
5000
10000
15000
20000
25000
30000
5
5
5
5
5
5
5
5
5
Amount
payable
on
maturity
(tk)
37995
75990
151980
379949
759898
1139847
1519796
1899745
2279695
Current Account
1. Limited Company
Certificate of Incorporation.
Certificate of Commencement of business.
Memorandum of association.
Article of association.
Power of attorney.
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2. Proprietorship firm
Name of the authorized persons, designation, specimen, signature
card,
trade license
Photo copy of national ID card/passport/chairman certificate.
An existing current account holders identification
3. Partnership Firm
Account must be opened in the name of the firm.
The form should describe the names and address of the entire
partner.
Trade license from City Corporation is needed.
Partnership deed.
Letter of authority is achieving.
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Individual (personal)
Proprietorship (Sole trades)
Partnership firms (Registered or unregistered)
Joint stock companies (Private limited companies/public ltd.)
Public sector corporations
Municipalities/ Municipal/ Corporations/ Local Bodies etc.
Clubs / Societies / Associations / Schools / Colleges / Universities
etc.
Executors / Administrations
Trustees
Illiterate Persons
Constituted Attorney
Wage Earners.
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A customer can close out his A/C at any time by submitting an application
to the branch. Upon the request of a customer an account, the following
procedure is followed by a banker:
1. The customer should be asked to draw the final cheque for the
amount standing to the credit of his a/c less the amount of closing
and other incidental charges and surrender the unused cheque
leaves.
2. The a/c should be debited for the account closing charges etc. and
an authorized officer of the bank should destroy unused cheque
leaves.
3. In case of joint account the applicant for closing the a/c is to be
signed by all the joint holders even if the a/c is prepared by either of
them
4. The last cheque for withdrawal of the available balance in the a/c is
to be signed by all the joint holders.
6. Local Remittance Department
UBL has its branches spread throughout the country and therefore, it
serves as best mediums for remittance of funds from one place to
another. This service is available to both customers and non-customers of
the bank. The department, which provides the facility, is known as local
remittance department
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6.2Transaction Types:
Collection of cheque
Cancellation of DD
Up to 1,000------------------------Tk.25.
Above 1,000-----------------------Tk.40.
Payment Order
Up to Tk. 1,000----------------------Tk.10.
1,000-1, 00,000----------------------Tk.25.
1, 00,000-5,00,000------------------Tk.50.
Above Tk.5, 00,000-----------------Tk.100.
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Any one of the following methods may make remittance of funds one place
to another.
Telegraphic
Transfer (T.T)
Demand Draft
(D.D)
Mail Transfer
(M.T)
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Accounting Entry:
Payment of T.Ts:
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In case the beneficiary does not maintain any a/c with the Drawee branch a
P.O is issued in favor of the payee and sent to his banker/local address as
the case may be.
Every branch maintains a prescribed T.T. Payable Register. All the
Particulars of T.Ts are to be properly recorded in this Register duly
authenticated.
A
separate
type
of
T.T
confirmatory
advice/confirmation copy of Telegram from the Issuing branch, the
particulars of the T.T are verified with reference to particulars already
recorded in the T.T payable Register.
The Confirmatory advices are kept attached with the relative Ticket
No further responding entry is required to be passed on receipt of such
confirmation copy. On payment of T.T the particulars are to be incorporated
in the Extracts of Responding Debit entries as usual and sent to HORC.
For issuing each Pay Order commission at the rate prescribed by Head
Office is realized from the client and credited to Income A/C as usual.
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Entries:
Dr.
Tellers Cash
7. Cash Section:
The cash section with all types of negotiable instrument, cash and other
instrument and treated as a sensitive section of the bank. It includes the
vault, which is used as the store of case instrument. If the cash stock of
goes beyond this limit the excess cash is then transferred to Bangladesh
Bank. Keys to the room are kept under control of cash officer and branch in
charge. The amount of opening cash balance is entered into a register.
After whole days transaction the surplus money remains in the cash
counter is put back in the vault and known as the closing balance. Money is
received and paid in this section.
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At first the depositor fills up the deposit in slip. There are two types of
deposits in slip in this branch. One for saving account and another for
current account.
After filling the required deposit in slip depositor deposits the money.
Officer at the such counter receives the money, count it enter the amount of
money in the scroll register kept at the counter, seal the deposit in slip and
sign on it with date.
Then this slip is passed to another officer who enters the scroll number
given by the cash counter in his register along with the amount of the
money, sign the slip and keep the banks part of the slip. Other part is given
to the depositor.
All deposits of saving account are maintained be one officer and other
accounts by another officer
At the end of the day entries of both of these registers are cross checked
with the register kept at the counter to know whether the transaction are
correct or not.
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two signatures on the back of the cheque and checks his balance in
the computer. After that the officer will give it to the cash in charge.
Then the cash in charge verifies the signature from the signature card
and permits the officer in computer to debit the clients account by
giving posting. A posted seal with teller number is given.
Then the cheque is givento the teller person and he after checking
everything asks the drawer to give another signature on the back of
the cheque.
If the signature matches with the one given previously then the teller
will make payment keeping the paying cheque with him while writing
the denomination on the back of the cheque.
Cash paid seal is given on the cheque and make entry in the
payment register.
There are few things that shall be scrutinized and checked before making
payments.
i)
ii)
iii)
iv)
v)
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Sorting:
At the end of the day, the amount of cash has to be sorted out in order to
identify the different type notes like- 1000, 500, 100, 50, 20, 10, 5, 2, 1 & so
on. Hundred pieces of any type of note create a bundle and ten bundles
make a ring. In this way cash is actually sorted out.
Stitching:
After sorting out the cash, bundles are stitched along with a slip bearing the
name of the bank, total number of notes and the signature of the cash-InCharge. Two round seals are given at the both sides of the bundles.
8. Clearing Department:
According to the Article 37(2) of Bangladesh Bank order, 1972, the banks,
which are the member of the clearing house, are called as scheduled
banks. The scheduled banks clear the chouse drawn upon one another
through the clearing house. This is an arrangement by the central bank
where every day the representative of the member banks gathers to clear
the chouse. Banks for credit of the proceeds to the customers accounts
accept chouse and other similar instruments. The bank receives many such
instruments during the day from account holders. Many of these
instruments are drawn payable at other banks. If they were to be presented
at the Drawee Banks to collect the proceeds, it would be necessary ti
employ many messenger for the purpose. Similarly, there would be many
chouse drawn on this messengers of other banks would present bank and
them at the counter. The whole process of collection and payment would
involve considerable labor; delay, risk and expenditure are substantially
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When a particular branch receives instrument drawn on the other bank with
in clearing zone and those instruments for collection through the clearing
arangement is consider as outward clearing for that particular branch.
UBL Principal Branch clears its cheques through the Head Office as well as
the cheques of other branches, because it is only permitted. The other
branches send the instruments through I.B.D.A UBL Principal Branch acts
as an agent in this case. For this concern branch gives the following
entries,
Customers A/C------------------Debit
UBL General A/C---------------Credit
finishing the collection processor. And in ward bills customers is debited for
this purpose. So it placed dual role as follows:
i)
ii)
Collecting Banker
Paying Banker.
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Findings:
In Uttara Bank Ltd. the coordination among lower, mid, and top level
management is very good.
In Uttara Bank Ltd. the prompt decision making by the management
among their own supervision.
In Uttara Bank Ltd. the lagging behind technologically.
Improper record keeping system found by the employers or
employees by Uttara Bank Ltd.
Lack of job rotation. Only a selected number of officers are involved
or engaged in general banking department in Malibagh branch of
UBL. So that in case of emergency other officer cannot handle the
department.
In Uttara bank ltd. There is huge network with correspondent banks
abroad; it means it worked all over Bangladesh as well as the other
country.
In Uttara Bank Ltd. The experienced and skilled officers in general
banking department as well as some other department.
There is no record of opening a student file in the branch which is one
of the potential businesses for a bank/branch.
In banking sector this banks well reputation in International arena.
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CONCLUSION:
Uttara Bank Ltd. Is the largest non-govt. organization through out or the
region. It is working mass people about aquaculture, social welfare and
income generation of this region.
Leadership style process accomplished half of its organizational activities.
Employees are the lifeblood of organization & leadership style are the way
to motivate & maintain that.
Work mood is associated leadership style in many senses. An appropriate
leadership style can bring the job satisfaction among employees.
Uttara Bank Ltd. Malibagh Branch, Dhaka. It is such non-govt. organization
is highly concerned with those factors of leadership style. They apply an
effective style to implement the organizational objectives. From apply an
effective style to see that effective leadership style bring a great and fruitful
success of the organizations.
RECOMMENDATIONS:
Uttara Bank Ltd. Is the 2nd generation bank and providing its service since
many years . Since its establishment it has provided so many banking
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services to the people of this country, but need to walk with the concept of
modern banking system. Today the 3rd generation banks are providing the
modern banking services such as- internet banking, SMS banking, debit &
credit card facilities, ATMs services, electronic banking, corporate banking,
retail banking, &SME banking etc. whereas Uttara bank are still providing
their traditional banking service. I think it should go more effectively to the
general people of the country with the concept of modern banking system.
Now a day it is very difficult for any bank or financial institute to run its
operation smoothly because of hard competition. So to survive in the
market it should come out from its traditional concept and provide modern
banking service.
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