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.

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 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.

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 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

8
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 : info@ucbl.com

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

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 2.2 BANKING DEPARTMENT OF UCBL:

General
Banking

General
Advance

Foreign
Exchange
Advance

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

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 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
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 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.

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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.
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 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.

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 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.
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 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.

24
 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

25
 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.

26
 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.

27
 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

28
 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
30
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
31
 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
33
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.

34
 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 a. Cash in advance
b. Letter of credit b. Documentary Letter of credit
c. Drafts c. Documentary collection
d. Consignment d. Open account
e. 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

35
  Credit report of supplier

 CIB report

 Membership of Chamber & commerce

 LC insurance cover note etc.

Chart of LC process:

Importer/ LC Exporter/
applicant Proforma Invoice Beneficiary

UCBL Acknowledgement Beneficiary

bank
Advising bank

Negotiating Bank

Reimbursing Bank

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.

36
  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
37
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.

38
 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.

STRENGTH WEAKNESSES

OPPORTUNITIES THREATS

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:

39
  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.

40
 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.

41
 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.

42