Executive Summery

It is very much important to coincide the academic knowledge with the practical one. Keeping
this view in mind, Institute of Business Studies, International Islamic University Chittagong,
makes proper arrangements of practical orientations (internship) each year for the students of
BBA which is a part of BBA program. This is because the academic knowledge is not sufficient
enough to match with the real life situations .Mugdapara Branch for my internship program to
have a practical working experience and have an understanding of the real life with a closer look.
The prime objective of internship program is to introduce the learners with the practical
organizational environment. So that they can turn themselves for the jobs in future and can get an
opportunity to reflect their theoretical learning with real life situation. In my internship with
Uttara Bank Ltd. I worked with the activities of branch banking especially general banking
activities.
Bank is a financial organization, which is the lifeblood of the economy. This has the major
contributor to the development process of a country. Banks keep the wheel of the economy to
move forward and play a vital role for the mobilization of idle fund belongs to the people. These
tasks performed by the bank in three sections, which are general banking services, loans and
advances. Uttara Bank Ltd. provides all kinds of banking services like other banks. The major
service area are receipt and payment of cash, clearing and remittance of bills, giving loans and
advances, accounts opening, inward and outward mails, foreign exchange transactions etc.
Uttara Bank Ltd. Mugdapara Branch provides L/C facilities to its importers and exporters
through establishment of correspondent relations and Nostrum Accounts with leading banks all
over the world. It also performs effectively Finance and Loans, Export Import Trade Finance,
Corporate Finance, Industrial Finance, Lease Finance, Commercial Loans, Project Finance,
Retail Loans, Mortgage Loans, Loan against Share and Securities etc. Uttara Bank Ltd
Mugdapara branch also provides the general banking service to the customer such as different
categories of savings schemes, current account for business personnel etc. at the time of my work
at the branch I understood the gap between the practical and theoretical knowledge. I tried my
best to make the report fruitful and my all efforts will be valuable if any one bets any sort of
benefit from my report.
All sort mistakes or errors or omissions made in the report will go to my side and I am wholly
responsible for it.
1.1

Introduction

Banking system Occupies an important place in a nation economics banking institutions is

indispensable in a modern society. It plays a pivots role in the economics development of a
country and forms the core of the money market in a advance country, in recent times the
banking sector of the world has been undergoing a lot of changes due to deregulation.
Technological innovation, globalization etc. Bangladesh Banking sector is lagging for behind in
adopting these changes. To thrive well in this changing environment, but only development of
appropriate infrastructure is necessary but also infusion of professionalism in to banking service

is essential. The banking sector is one of the highly regulated sectors in our country. It is
governed by the rules and regulations of central bank of the country i.e. Bangladesh bank and
security and Exchange commission. The bank companies are forced to comply the best
accounting practices. It strictly follows international Accounting Standard (IAS) norms. It
publishes to financial statement every year getting it duly audited by recognized audit firms.
Every bank of our country has a division named financial Administration Division (FAD) which
takes care of the accounting issues of the Bank. Most of the personnel who lead these divisions
are of accounting background. Among the account based FAD personnel who know the banking
operation better can contribute mere in the banks.
1.2

History Behind the Report

For Internship report each student has to prepare a report on their choice. According to this
requirement, I have already completed by internship report. I know the conventional banking
system. For by reporting purpose a lot of time I went IVTRA to collect necessary information.
On the basis of my practical experience as well as theoretical knowledge, I have completed the
report regarding An Analysis of the Activities of General Banking Division of Uttara Bank Ltd.
Moghbazar Branch the main focus of my study is to analyze the deposit and banking system.
Conventional bank is given by interest against its deposit and lend money or issue securities with
fixed interest. Instead it finance in various schemes approved by council board to achieve its
goal.
1.3

Objectives of the Study

The main objectives of the study are to gather practical knowledge regarding banking system and
operation. This practical orientation gives us a chance to coordinate out theoretical knowledge
with the practical experience. The following are of objective for this practical orientated in bank.
To apply theoretical knowledge in the practical field.
To find out the overall features deposit scheme of UBL
To fined out the overall pictures of investment of UBL.
To identify strength and weakness of lending of overall banding system,
To identify the problems related to investments faced by UBL and other conventional bank.

1.4

Scope of the Study

The conventional banking system is acquired by the practical knowledge of the Uttara Bank Ltd.
Moghbazar Branch. They are nationally Commercial Banks, local private Commercial bank. I

am working condition set up air-condition. The bank is working processed used by computer
excel. I am acquiring by the knowledge observation face to face conversation. I required by the
one desk to other desk. I am working conventional banking system of Uttara Bank Limited. The
banking division in internship is practical report of the general banking division. The internship
report of the University is an integral part of the BBA program. So it is obligatory to undertake
such task by the students who desirous to complete and successfully end-up their BBA degree.
This also provides an opportunity to the students to minimize the gap between theoretical and
practical knowledge. During the internship the teachers of the department are attached to actively
and constantly guide the students. Students are required to work on a specific topic based on
their theoretical and practical knowledge acquired during the period of the internship program
and then submit it to the teacher. That is why we have prepared this report.
1.5

Methodology of the Study

For smooth and accurate study every one have to follow some rules and regulations, the study
impute were collected from two sources
(a)

Primary sources
I.
Practical desk work
II.
Face to face conversation with the officer
III.
Directs observations

(b)

Secondary Sources
I.
II.
III.
IV.
V.
VI.

Annual Report of UBL

Files & Folders
Memos & Circulars
Various Publications on Bank
Websites
Different circulars sent by Head office and Bangladesh Bank

There are two major methodologies of the study. Describe which are below:
Primary Sources.
There are three items of primary sources which are below:
1. Practical Desk Work: Any student is practical knowledge acquired by the desk to desk. I
acquired practical knowledge one officer to another officer.
2. Face to face conversation with the officer:- The internship way is the practical knowledge
from the bank officer. The banker are busy all-time. So , the banker is some time learned
by the practical knowledge.

3. Direct Observation:- Direct Observation are acquiring by the knowledge. It is possible

acquired by the practical knowledge.

B. Secondary Sources.
There are some secondary sources. Describe are which secondary sources:
1. Annual Report of UBL:- The annual report of UBL are needed by the making report. The
report are making by the needed by the internship of the Bachelor of Business
Administration.
2. Files and Folders:- The file and folders are needed by the internship report completed by
the Bachelor of Business Administration. The file and folders are needed by the cover
page forwarding loan section .
3. Websites:- The websites are needed by the internship report by the completed by the BBA
program.
4. Different circulars sent to Head Office and Bangladesh Bank: The diffident circulars
sent to Head office of the Bangladesh Bank. At first any circular is Bangladesh bank sent
to Head office message.
1.6

Limitations of the Repor

There were some problems while I conducting the orientation program, a whole hearted effort
was applied to conduct the orientation program and to bring a reliable and fruitful result, in spite
of having the whole hearted effort, there exit some limitation which acted as a barrier to conduct
the program. The limitations were

Three months time is not enough for such an extensive study. It is very difficult to collect
all the required information in such a short period.

Due to some legal obligation and business secrecy banks reluctant to provided data. For
this reason, the study limits only on the available Published data and certain degree
formal and informal and informal interview.

The Bankers are very busy with their jobs, which lead me little time to consult with.

Lack of experience.

Learning all the banking function about credit within just two and half months was really
tough.

Another limitation of this report is banks policy of not disclosing some data and
information for obvious reason, which could be very much useful.

Profile of the Organization

2.1

An Overview of Uttara Bank Limited.

Uttara Bank is one of the largest and oldest private sector commercial bank in Bangladesh, with
years of experience. Adaptation of modern technology both in terms of equipment and banking
practice ensures efficient services to clients 209 branches at home and 600 affiliates worldwide
create efficient networking and reach capability. Uttara is a bank that serves both clients and
country.
2.2

Historical Background of UBL

Uttara Bank Limited is deeply related with the history tradition and living standard of human of
the country. This Bank started its operations on 28th January 1965 as a commercial bank by
Eastern Banking Corporation, which is interpreting by a private organization. In 1972 the Bank
takes this name Uttara Bank. It had been limited company in 1983 that is named Uttara Bank
limited. On 21st August 1983 it
2.3

Objectives of Uttara Bank Ltd.

The objectives of UBL are follows:

Mobilizing deposit from the surplus economic unit to deficit economic unit.

Cater to all different segments of retails and wholesale customer.

Being a high quality distributor of products and services.

Serve the people of the country by providing financial assistance.

Help the nation in reducing the employment problem by securing services to a large
number of people.

Ensure balanced economic development though out the country.

To expand business.

To keep position in the competitive market.

To contribute in profitability of UBL.

2.4 Features of UBL

The bank is committed to turn all its activities as per council board. UBL through its steady
progress and continuous success has earned the reputation of being one of the leading private
sector banks of the country. The distinguishing features of UBL are as follow:

All its activities are conducted on interest banking system according to council board.

Establishment of participatory banking instead of banking in debtor creditor relationship.

Investment is made though deterrent modes permitted under council board.

Investment income of the bank shared with depositors according to a ratio to endure a
reasonable fair rate of return on their depositors.

It aims are to introduce a welfare oriented banking system and also to establish equity
and justice in the field of all economic activities.

It extends economic and financial services to the poor , helpless and height income group
of the people for their economic up liftman particularly in the rural areas.

It plays a vital role in human resource development and employment generation

particularly for the unemployed youths.

Its aim is to achieve balanced growth and equitable development of the country through
diversified investment operations particularly in the priority sector and in the less
developed.

It extends cooperation to the poor the helpless and the height income group for their
economic development.

2.5

Functions of UBL

The operation of Uttara Bank Limited. Can be divided into three major categories:
2.5.1

General banking : it includes:-

a)

Mobilization of deposits.

b)

Receipts and payment of cash.

c)

Handling transfer transaction

d)

Operations of clearing house

e)

Maintenance of accounts with Bangladesh band and other bank

f)

Collection of cheque and bill

g)

Issue and payment of Demand Draft, telegraphic transfers and payment order

h)

Executing customers standing instructions

i)

Maintenance of safe deposit lockers

j)

Maintenance of internal accounts of the bank

While doing all the above noted work UBL issue cheques-book, Deposit account opening form,
SS card, Ledgers, Cash book. Deposit account ledgers, preparation statement of accounts. Pass
Book, Balance of different accounts and calculated profits

UBL offers to open the following account to the depositors:

Current Account

Saving Account

Term Deposit account. (3 month/6month /12 month /36month / 60 month)

Cash Credit Account.

2.5.2

Foreign Exchange Business

Foreign Exchange Business plays a vital role in providing substantial revenue on the bank
income pool.

Opening letter of credit against commission for importing industrial agricultural and
other permissible items under council board.

Opening letter of credit on the principle of sale, on the principle of under wage earner
scheme.

Handling of export /import document.

Negotiation of export and import document when discrepancy occurs.

Financing import under import board.

Financing to export on profit or loss sharing

Handling inward and outward remittance.

2.5.3

Other activities

The UBL performs the following task for the welfare of the nation. There are some point which
is below:v Income generating scheme for the unemployed youth of the nation.
v Monorom sale center for marketing homemade garment, handicraft and other items.
v Education scheme for assisting poor scholar student to case and help them to continue their
study.
v Health scheme for fulfillment of health needs of rural people.
v UttaraUniversity was established to extend service to the student.
UTTARA BANK LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2008
Table: 01
2008
Notes

2007
Taka

Taka
OPERATING INCOME
Interest Income
18.1
Interest paid on deposits, borrowings etc 19
Net Interest Income
Income from Investment.
20
Commission, Exchange and Brokerage 21

Other Operating Income

Total operating income
OPERATING EXPENSES
Salary and allowances

22

4,084,288,089
2,200,521,205
1,883,766,884
784,896,516
907,895,386

431,106,660
4,007,665,446
1,272,357,540

4,084,288,089
1,876,351,450
1,121,081,427
921,189,131
744,994,717

356,650,099
3,143,915,374
1,158,073,662

Rent, taxes,insurance,electricity etc

Legal expenses
Postage,stamp,telecommunication etc.
Stationery,printing,advertisements etc
Managing Directors salary &
allowances and fees
Directors fees and expenses

151,877,811
9,429,329
39,680,054
51,324,787
6,424,333

188,502,215
48,215,055
48,215,055
40,275,975
5,060,000

29

2,264,000
1,916,000

Auditors fees

250,000
130,000
30

107,256,133
85,308,986

Repair, maintenance and depreciation

of Banks property
31

166,472,931
138,653,184

Other expenses
1,807,336,918
1,677,679,817
Total operating expenses
2,200,328,528
1,466,235,557
Operating profit
32

105,289,644

Add: Profit on sale of fixed asset

2,305,618,172
1,466,235,557
Profit before provision
207,500,000
322,500,000
Provision
33

92,550,000
255,800,000

Provision for loans & advances

34
Provision for off balance sheet
exposures

57,450,000
44,200,000

35

55,000,000

Provision for outstanding unrecognized

entries

20,000,000
Transfer to gratuity fund
2,500,000
2,500,000
Transfer to benevolent fund
2,098,118,172
1,143,735,557
Profit before tax
959,600,000
734,200,000
Provision for Tax
940,000,000
727,000,000
Current tax
19,600,000
7,200,000
Deferred tax
Profit after tax

1,138,518,172
3,196,722

409,535,557
22,990,765

Retained surplus brought forward

1,141,714,894
432,526,322
Profit available for appropriation
1,140,000,000
429,329,600
Appropriations
1,000,000,000
30,000,000
Statutory reserve
140,000,000

General reserve

399,329,600
Issue of bonus share
1,714,894
3,196,722
Retained earnings

40

142.55
51.28

Earning per share (EPS)

The profit and losses are chart collect by the internet of the Uttara Bank Ltd.
Literature Review
3.1

What is Bank?

The word Bank bas been originated from an Italian word BANCO expressing the meaning.
A tall bench
A Financial institution which buys money at lower price and sells money at higher price is called
bank.
In the crude language spread means the difference between the deposit rate and lending rate i.e
spread =lending rate-Deposit rate.

Islamic Bank:
Financial institutions whose statute rules regulation and procedures expressing state its
commitment to the Islamic shariah and to the banning of receipts and payments of interest in any
of its activities is called Islamic bank.

3.2

Objective of a Bank.

To facilitate the transferring of fund from the surplus unit to deficit unit
To accelerate the savings
To accelerate the investment
To enhance the economies development
To facilitate the trades and commerces

Bangladesh Bank is the Central bank of Bangladesh. It is the monetary authority of the country.
It came into existence under the Bangladesh Bank Order 1972 (Presidential Order No. 127 of

1972) which took effect on 16 December 1971. Through this order, the entire operation of the
former State Bank of Pakistan in the eastern wing was transferred to Bangladesh Bank.
Bangladesh Bank has 9 branch offices, two in Dhaka city (sadarghat and Motijheel), and one
each in Chittagong, Khulna, Rajshahi, Sylhet, Bogra, Rangpur and Barisal. The head office
discharges its duties with 28 departments.

History of Bangladesh Bank

After the liberation war, and the eventual independence of Bangladesh, the Government of
Bangladesh reorganized the Dhaka branch of the State Bank of Pakistan as the central bank of
the country, and named it Bangladesh Bank. This reorganization was done pursuant to
Bangladesh Bank Order, 1972, and the Bangladesh Bank came into existence with retrospective
effect from 16 December 1971.

Objectives of Bangladesh Bank

As the central Bank of Bangladesh, the broad objectives of the Bank are :
a) To regulate currency issuance and to keep foreign exchange reserves.
b) To manage the monetary and credit system of Bangladesh with a view to stabilizing domestic
monetary value.
c) To preserve the par value of the Bangladeshi Taka.
d) To promote and maintain a high level of production, employment and real income in
Bangladesh; and to foster growth and development of the countrys productive resources.
e) To Reserve all the rights of the bank

Functions of Bangladesh Bank as Central Bank

Bangladesh Bank performs all the functions that a central bank of any country is expected to
perform, and such functions include maintaining the price stability through economic and
monetary policy measures, managing the countrys foreign exchange and the gold reserve and
regulating the banking sector of the country. Like all other central banks across the globe,
Bangladesh Bank is both the Governments banker and the bankers bank, a Lender of the Last
Resort. Bangladesh Bank, like most of the central banks of different countries, exercises
monopoly over the issue of currency and the banknotes. Except for the 1 and 2 taka notes, it
issues all other denominations of Bangladeshi Taka.
Bangladesh Bank has been entrusted with all the traditional central banking functions including
the sole responsibilities of issuing currency, keeping the reserves, formulating and managing the
monetary policy and regulating the credit system of Bangladesh with a view to stabilizing

domestic and external monetary value and promoting and maintaining a high level of production,
employment and real income in the country. The bank acts as the banker to the government and
accepts government deposits, cheques and drafts, and undertakes collection of cheques and drafts
drawn on other banks. The government deposits all its cash balances with the Bangladesh Bank
free of interest. The bank transfers government funds from one place to another as requested by
the government and its agencies.
Bangladesh Bank is empowered to act as the watchdog of the countrys banking system, and all
scheduled banks are accountable to Bangladesh Bank, which has extensive powers to ensure
soundness of the banking system. No bank can commence banking business in Bangladesh and
no existing bank can open a new branch in or outside the country or shift any branch from one
place to another without obtaining a license/permission from the Bangladesh Bank.

Organization
The highest official in the bank is the Governor (currently Dr. Atiur Rahman). The Governor
chairs the Board of Director. The Executive Staff, also headed by the Governor, are responsible
for the day to day affairs.

Foreign Relations
Bangladesh Bank has correspondent relationships with one international and 8 foreign central
banks viz., the Federal Reserve Bank of New York, Bank of Canada, Bank of England, Banque
de France, Deutsche Bundesbank, Bank of Japan, Sveriges Riksbank of Stockholm, Reserve
Bank of India and the Bank for International Settlements, Basle. Besides, Bangladesh Bank has
now invested its foreign exchange reserves with 14 banks at different international financial
centers
Analysis and Findings
General Banking Department
General Banking Department is considered as the direct service center. The clients and customer
build their impression whether they are going for further dealings with the bank or not on the
basis of the service in the department, Moreover this department is the one that gives the first
impression about the bank to the clients. So, general department should be taken carefully.
4.1 Function of General Banking
The functions of general banking are as follows:

Establishing of banker-customer relationship of account opening.

Remitting customers money from one place to another.

Collecting bills for customers.

Taking deposits and honoring cheques drawn over local office.

Clearing taking function.

Different Parts of General Banking:

General Banking Department constitutes of the following sections:

Account Opening Section

Cash and Computer Section

Remittance Section

Clearing Section

The functions of the different department are discussed below:

4.1.1 Account Opening:
Banking business is very much correlated with banker customer relationship. To be a customer
one person must have some sort of banking relationship with the bank. Account opening section
establishes that relationship by opening a new account for the customer.
Uttara Bank Limited. Allows its clients to open the following types of accounts and receives
deposits in those accounts. There are three months current accounts opening seventy only. Every
account is needed TK. One thousand only. Saving account this three month are opening one
hundred eighty. The fixed account is not opening by the UBL. This three months are not opened
UBL.

Types of Accounts:
1. Current Deposit
2. Savings Bank Deposit
3. Fixed Deposit
4. Short Term Deposit
Key Features of opening an account in UBL:

1. Current deposit account: Current deposit accounts should be opened with a minimum
amount of TK. 1000/= But under special circumstances in may be opened with TK.
500/=. It is payable on demand, No interest is paid in these types of accounts.
1.

Savings Bank Deposit Account. Minimum amount of TK.1000/= is required for

opening this type of account, the account may not be retained it the balance falls below
TK.200/= Not more than one account should be opened in one name. A depositor is
allowed to withdraw per week up to 25% of the balance of his or her account. For
calculation of interest the minimum balance at the credit of an account by the close of 8 th
the month should be taken into consideration.
2.

Fixed Deposit Account: Fixed deposit accounts are opened for a diced period, varying from
three months to three years or above and are payable at a fixed date of maturity, interest on this
deposit is paid at the rate fixed by Head office of the 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:

Years 2001 t0 2007
Table: 01
Periods
From 3 months up to 6 months
From 6 months up to 1 year
From 1 year up to 2 year
From 2 year up to 3 year

FDR Rate
9.5%
10%
10.5%
11.5%

The data collect by the Annual Report.

The following table shows different FDR rates:
Years 2008 & 2009
Table: 02
Periods
Saving Account
Short-Term Account
From 3 months up to 6 months

FDR Rate
4.75%
3.5 %
7.75%

From 6 months up to 1 year

From 1 year up to 2 year
From 2 year up to 3 year

8%
8.25%
8.50%

The date collects by the Bank Chart of UBL.

4. Short Term Deposit Account: The deposits held in these accounts should be payable on short
time, lice in 7 days or in 30 days. The deposits may be accepted for a certain period and Head
Office fixes the rate of interest from time to time. The STD interest rate in UBL is 5.5%

Nature of Accounts
UBL may open following types of accounts:
1. Individual Accounts
2. Joint Accounts
3. Proprietorship Firm Accounts
4. Partnership Concerns Accounts
5. Private Limited Companies Accounts
6. Public Limited Companies Accounts
7. Accounts of Societies, Clubs, Association etc
8. Trust Accounts
9. Accounts of Local Authorities
General procedure of opening accounts
Current Deposit Account
v The account opening form of current deposit account and specimen signature card is supplied
to the customers, which is filled and signed by them.
v In case of individual account, an account holder signs the AOF and SSC in his / her individual
capacity both under yours faithfully and specimen Signature. In case of partnership firms &

proprietary concerns, it is to be signed by the persons / partners in their individual capacity under
Yours Faithfully and in their official capacity under Specimen Signature. in other cases private
and public limited company both signatures must be in official capacity.
v ACD account holder of the bank shall introduce the new account holder. An Elite of the
locality, who is well known to the banker can introduce it, official other than the staff of UBL
can also introduce it.
v Clear instructions with regard to operations are noted in the AOF and SSC Specially in case of
death or inability of any kind in regard of the joint account holder.
v The officer in charge of the Deposit Department verifies the signature of the introducer. The
stamp signature verified is affixed near the signature of the introducer and the deposit officer
signs over it.
v Approval of the branch in charge in obtained on the Account Opening Form.
v 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.
v Particulars of the account opening form are entered in the account opened & closed register in
a serial order.
v The account number allotted to the new account in given on the AOF, SSC and on Cheque
book requisition slip.
v The customer is supplied with a pay in Slip Book and requested to deposit the money with
cash officer.
v Cheque is only issued after the account opening form has been completed is all respects and
initial cash deposit has been made. The cheque book series is noted in the cheque requisition slip.
v Particulars of the account opening form are entered in the Reference Book under alphabetical
order.
v Accounting opening forms are posted in a file in serial order, on the other hand, the specimen
signature cards are placed in the Specimen signature card Box in numerical order.
v Lastly, while issuing new cheque book signature on the cheque book requisition forms should
be properly verified.
Saving Bank Deposit Account
The procedures of opening current deposit accounts are also applicable for opening the savings
bank deposit accounts. There are only the following exceptions.

Use of separate Account opened & closed Register also reference book and posting files
are different here.

Pay in-Slip Book

Fixed Deposit Account:

Account opening form and specimen signature card should be given to the customer.

Voucher no. SF-12, crediting Fixed Deposit Account with the amount of deposit with
full narration should be prepared and should be given to the deposit cash with the cash
officer after recording the particulars. In case of payment by cheque, it should be attached
with the credit voucher and sent to the deposit department for posting.

On receipt of the vouchers from the cash department, a fixed deposit receipt should be
prepared and recorded.

To admit the signature of the account holder the stamp Signature Admitted should be
affixed near the specimen signature card.

The AOF, SSC, the voucher and the recording ledger should be sent to the officer in
charge for signature.

Then the documents should be sent to the manager official for his/her signature on those.

The branch manager should ensure that the printer number on the deposit receipt books in
use are invariable noted.

At the closing of each business day, the officer in charge should verify the total amount
for which the deposit receipt has been used during the day, both from the credit vouchers
and the counter foils of the various deposit receipts.

Documentation
Current Deposit Account
The following documents duly completed should be obtained from the customer at the time of
opening a current deposit account of:
1.

Individual/Joint

2.

Partnership Firms

3. Proprietorship counters
4. Societies, Clubs, Associations
The documents are:
Account opening form
Specimen signature card Mandate for opening an individual account is obtained where a
customer wants to authorize another person to operate the account
Certified true copies of by laws in case of societies, clubs, associations and limited
companies etc.
Certified copies of resolution authorizing and operating of account with the bank passed by
the Executive committee of the society, club or association and limited companies etc.
List the numbers of the executive committee, list of directors.
Partnership firms
For limited companies, corporation, autonomous bodies the following documents should be
collected.
Account opening form
Specimen signature card
Memorandum and Articles of Association
Resolution of the Board of Director authorizing opening the account with the bank.
Certificate of Incorporation
Certificate of Commencement of Business
List of Directors
Act / Ordinance etc. in case of corporations/ Autonomous Bodies

Savings Bank Account

Account opening form

 Specimen signature card

Mandate should be obtained in case the customer wants to authorize another person to operate
the account
Fixed Deposit Account
Account opening form
Specimen signature card
Short Term Deposit Account
Form, which is used for CD account, can also be used for opening this type of account. Notice
period should be noted in the special instruction column.

Transfer of Account to other Branch

An account holder can request to transfer hid/ her account by gibing the following instructions:
1)

Reasons for transferring the account

2)

Address at which he /she is to contacted by the transferee branch

3)
The unutilized check book must be returned to the transferring branch before transferee
branch before transfer of account.
At first, the approval should be verified by the manager to transfer the account. Then the
specimen of the for working letter of transferee branch should be sent. After the application is
received duly approved from the manager, the branch transfers the account.
Closing of an Account
To close an account, one may be requested to send an application along with the unused pages of
the check book that is issued to the person. After receiving the application, the signature of the
account holder should be verified and the number of unused pages of the check book should be
noted. Before the account is closed the manager will approve the application. Lastly closing
charge should be debited to the account.
Cheque
A cheque is a very important document. Cheque is an instrument in printed form containing an
unconditional order. Signed by the account holder directing a certain person to pay certain

amount of money only to or to the order of a certain person or to by barer of the instrument, a
cheque is always supposed to be drawn against the funds in the persons account in the bank.

Issue of a Cheque Book

At the time of opening an account, a person 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
client, the account number is written in cash leaf of the cheque book and in it requisition slip.
The name and account number of the client is also entered in the Departmental cheque books
issued register against the particular cheque book series and it is also recorded in the computer.
Lastly the requisition slip is preserved as voucher.
4.1.2 Cash section
Cash is one of the most important sections of general banking department because it deals cash.
Function

Receiving cash

Paying Cash

Issuing Vouchers

Keeping record

4.1.3 There are some frequent situations, such as customer of a bank needs to transfer his her
fund or money to some where within the country boundary , if is really a risky thing to carry a
big amount of money from on place to another so most of the time they just purchase an
instrument or mean so that their fund can be transferred thorough his/ her own bank. This sort of
activities is cubed under the inland Remittance. These are
Demand Draft
Telegraphic Transfer
Pay Order
These are discussed below:
Demand Draft
This is an order to pay money, drawn by one branch of a bank upon another branch of the same
bank for a sum of money payable to order on demand.

Procedure of issuing D.D

Against Cash
A client is asked to complete a form. This is treated as an application as well as credit voucher
for head office account. Commission charges are calculated and inserted the voucher is given to
the client to deposit the cash; the cashier receives the cash and delivers the voucher to the
remittance department against initials in his/her book. Draft is prepared and recorded in the Draft
issued register. The amount of the draft is also protecting graphed. The draft number is written on
the voucher, then the officer in charge checks and signs the draft and the other vouchers. After
that a second officer gives his/her signature in the draft and also in the other vouchers. a credit
voucher and head office advices are sent to the accounts department. Lastly, advices are sent to
Dispatch section for onward transmission to the respective branches.

Against Cheque
The Cheque is sent for passing and collection. After the Cheque is passed, similar procedures are
Explained in case of cash are adopted.

Against letter of instruction

The letter is cent to the deposit section for verification of signatures. The letter is attached with
the debit voucher. After the debit voucher is passed, similar procedures as explained in case of
cash are adopted.
Cancellation of D.D
On receipt of application along with the demand draft for its cancellation the signature of the
applicant is verified from of original application form. The genuineness of the D.D is also
examined. Before the drags is cancelled it is ascertained they no duplicate draft has been issued
and the drawee branch has not paid the same earlier, the draft is cancelled by tearing out the
signature there on and a note on this effect in red ink is made in the original application form.
Lastly, the cancelled draft is attached with the debit voucher.
Payment of D.D
On receipt of advice from drawing branches the particulars are checked and initialed by the incharge.
Payment in cash

First a token is issued. The dates, amount in words and figures, branch drawn upon and
signatures on the drafts are checked. A stamp is affixed on the face of the draft. Particulars are
recorded. The draft is sent towards the officer in-charge for cancellation, after cancellation its
dent back for payment. In case of any irregularity in the draft an advice letter is sent to obtain the
confirmation of the branch.
Payment in clearing
Collecting banks crossing, stamp and discharge are checked. Other procedures are similar with
the payment is cash.
Telegraphic Transfer
In telegraphic transfer the issuing branch sends a telegraphic message of the branch at the other
end to pay a certain amount of money to named payees account maintained with the drawee
branch.
Issue of a Telegraphic Transfer
Against cash
The client is asked to complete form which is also treated as credit voucher for head office
account branch concerned. A credit voucher is prepared for telegrams charges. Test of telegram is
prepared and handed over to the in charge. The test is then checked, coded and tested by the incharge. The message is typed on form in duplicate, the test in then signed by the in-charge and
also by the manager. Original telegram and the confirmation are sent to the dispatch section.

Against Cheque
Commission charges are calculated and inserted. Client is advice to draw cheques, favoring the
branch and deposit the same to the receiving cashier. Cashier then receives cheque and cent it to
the officer in charge for passing and cancellation, the client is asked to fill up the application
form, particulars are recorded, ATT number is written in the voucher and the voucher is then
signed by the officer in charge. After that similar procedure is followed like the TT against cash.

Against letter of instruction

At first, the letter is sent to deposit department for verification of signature. After that the
procedures are same as in the TT against cash.

Payment of T.T
Telegram is detected and test verified by the in charge and the manager. If the test does not match
a telegram is sent to the concerned branch asking them to repeat the message with correct test. If
the test marches, a stamp is fixed on the telegram and signed by the officer.

Advice to payee
When TT advice is received by the paying branch from the issuing branch, the advice is
recorded. Then the officer in charge signs it, after the sign of the in charge, the manager signs it.
Lastly, the receipt is sent of the payee.
Payment Order
Pay order is an instrument, which is issued from a certain branch of a bank and must be encased
from the same branch. It is like the cash but not exactly cash, one, who is maintaining the
account with UBL, can purchase a pay order. it is used for remittance purpose within the clearing
area covered by the branch.
Issuing Procedure

Against Cash
At first, the client is asked to complete a form. This is treated as credit voucher. Commission is
charge and a voucher is prepared crediting Income Account Commission. After receiving the
voucher from the cash section duly signed by the in charge, the pay order slip is prepared
according to the voucher. The number of the officer in-charge checks it and signs. After his/her
sign another sign is taken form an officer as second signature.

Against Cheque
The cheque is passed. After that the procedures are same the PO against cash.
Against Letter of Instruction
The letter is sent to the deposit section for verification of signatures. Other procedures are same
as the P. O against cash.

Payment of Pay Order

When a client submits a PO for payment, at first it is authenticated by comparing its particular
with the records. If it matches then a seal is given. After that the records and the PO is given to
the officer to verify it. If the officer finds that its OK then he/she signs it and it to the cash
section for payment.
4.2.3 Clearing
When a customer of UBL presents an instrument drawn on other bank for collection, the
instrument is collected through clearing house of Bangladesh Bank. Every day two houses are
arranged in Bangladesh Bank. One in the evening and another in the morning. The evening house
is known as return house. Everyday the instruments that are drawn go to the officer of the
clearing section. He enters bank name, branch name, number and the amount through a software
named Nikash22 in the main schedule of banks. Then the officer makes a copy of it and goes
to the clearing house of Bangladesh Bank. Bangladesh Bank official take the copy. Then they set
off the claims of UBL on other banks.

4.3 Loan Section & Credit Section

In case of loan, the banker advances a lump sum for a certain period at an agrees rate of interest.
The interest is charged for the amount the client withdraws from his/her account. The banker
considers the following 5Cs before sanctioning the loan.

v Character: The most valuable asset of a person which is based on the integrity and reliability
of the borrower.
v Capacity: This indicates the borrowers ability to employ the funds profitability and repay the
advance.
v Capital: It refers to the borrowers own funds invested in the business.
v Collateral: It indicates the security offered by the borrower.
v Condition: It refers to external factors that are current business situation of the country.

Functions of loan Department

The functions of loan department are as follows:

Ensuring that funds are disbursed only after compliance with terms and conditions or
required documents received.

Make sure that the bank has always valid and current loan documentation.

Ensuring that the collateral security is adequate at times to support the loans.

Keeping the loan documentation under safe custody.

Monitoring the receipt of periodical receivables.

Debiting the client for all charges, interests etc.

Marinating the central liability records for all extensions of credit and balancing the
totals with General Ledger.

Advance (Overdraft)
Secured overdrafts, Temporary overdraft, Cash Credit (Hypothecation), Cash Credit (Pledge) are
covered in this type of advance. Overdraft is an arrangement between a banker and his client by
which the later one is allowed to withdraw over and above his credit balance in the CD account
up to an agreed limit, a cash credit differs from overdraft in the respect that CC is used for long
term and overdraft is used for short term.
Temporary Overdraft (TOD)
Bank sometimes grant unsecured overdraft for small amounts to clients having CD account with
the bank. TOD is permitted only when reliable sources of funds are available to the borrower for
repayment. It is usually provided against DD, cheque etc. which have been presented for
collection but not yet collected. Though these documents are not lined but these are kept in the
respective departments for collection. When these are collected, the advances are realized from
the proceeds of these instruments.
Secured Overdraft (SOD)
Banks permit overdraft against securities like FDR, DPS, savings certificate, word order etc,
Currently, UBL issues SOD only against financial obligations. They are:

Share Certificate

FDR

ICB Unit Certificate

Savings Certificate

Wage Earners Development Bond (WEBD)

Defense Certificate

Cash Credit (Hypothecation)

The mortgage of movable property for securing loan is called hypothecation. Hypothecation is a
legal transaction whereby goods are made available to the lending banker as security for a debt
without transferring either the property in the goods or either possession. The banker has only
equitable charge on stocks, which practically means nothing. Since the goods always remain in
the physical possession of the borrower, there is much risk to the bank. So it is granted to parties
of undoubted means with the highest integrity.
Cash Credit (Pledge)
Pledge is the bailment of goods as security for payment of a debt or performance of a promise. In
a contract of pledge, bailer must deliver the goods pledged to the bailer cither actually or
constructively. Transfer of possession is the judicial sense, is essential in the valid pledge. In case
of pledge goods the bank acquire the possession of the goods or a right to hold goods until the
repayment for credit with a special right to sell after due notice to the borrower in the event of
non-repayment.
Advance department of Moghbazar branch deals with the following types of loans.
1)

Personal Credit Scheme

2)

Transport Loans

3)

Loan (General)

4)

House Building Loan

5)

House Building Loan

6)

Staff Car Loan

Required Information for Loan Sanction

Prior to loan sanction, investigation should be made about the persons business, trade
experience, dealings, assets and liabilities etc. this information should be taken from various
sources. His/her account statement with others banks should also be included is this
investigation, financial statements and income tax returns should be checked. Lastly, personal
interview should be taken.
So, before sanctioning a loan a banker should consider the following points:

Loan Application

Trade License, Partnership Deed, Memorandum of Association.

Market Report

Study of Accounts

Financial Statement

Personal Interview

Other Banks confidential opinion

CIB report of Bangladesh Bank

For sending proposals to the Head office the following documents are required:

Loan application

Photograph of the borrower

Declaration of the borrower

Credit report on the borrower, which should be prepared by the branch

Limit sanction advice

Statement of stock

Documentsmemorandum of deposit of title deed.

Mutation Certificate

 Up to date pay receipt

Legal opinion
Valuation certificate of the property
Different types of loans are discussed below
Personal Credit Scheme

It is a personnel facility provided to the stalls of the Moghbazar branch. These loans are provided
for buying necessary householder items. At first a staff applies for loan in a prescribed form. He /
she affix the statement of his /her savings the statement of his/her savings account and quotation
of the good from three sellers of that good. After receiving the application the authorized officer
verify it. He / she prepared a credit proposal and sends it to the Credit Division of Head Office.
The credit division appraises the proposal on the basis of the balances in the account, the
designation of the employee. If credit division id satisfied it fixes the margin, amount of loan,
mode of payment, rate of interest and instruct for obtaining other necessary documents from the
staff. Credit division prepares a sanction letter mentioning all those information, after getting the
letter the advance department informs the staff about that. A pay order is prepared in favor of the
seller with the amount of loan and margin provided by the staff. The staff handover the pay order
to the seller and gets his/her goods. The goods are hypothetic to the bank.
Loans against Transport
These types of loan are usually provided to the client who wants to start transport business, or
need a transport for carrying goods. The client brings quotation from three sellers of the vehicle.
License of the vehicle is made in joint name of the banker and the client. Payment is made
directly to the seller through a pay order. At the payment of the loan the client becomes the only
owner of the vehicle.

Loan
The purpose of this type of loan is not specific. It can be sanctioned against any kind of security.
Securities can be BSB, PSP.Share certificate, WEDB, FDR etc. Here the money is directly
transferred to the clients account.
Staff Car Loan
This is a personal facility provided to the higher officials of the bank. Officials of the post of
A.G.M. and above can get this loan, the car is licensed in the name of the bank and staff jointly.

The bank makes payment of the installment of the loan from its own fund. When the loan is fully
recovered, the staff becomes the owner of the car.
House Building Loan
This type of loan is provided to the staff for building their own house; the staff must have a land
to make the house. The land and the building is mortgaged to the bank. The loan is realized from
the monthly salary of the staff. At the dime of sanctioning the loan the monthly salary of the
staff, his/her designation, balance of his/her account etc are taken into account.

This type of loan is provided to the clients of the bank to build house. Registered mortgage of the
land and building is taken from the client.
4.4 SWOT Analysis of UBL
SWOT analysis provides an opinion and adjustment whether organizations currently position is
satisfactory or not.
4.4.1 Strengths

All the level of the management is solely directed to maintain a culture for the betterment
of the quality of the service.

The bank has earned customer loyalty as organizational loyalty.

Skilled personals have developed professional relationships with their customers and
clients, which is an emotional tie on regular business.

UBL is always trying to add new and modern equipments.

Employees are sharing good atmosphere in UBL so that it gave them reason to work
efficiently and to become dedicated in banking.

UBL maintain corresponding relationship with many foreign banks so that it is an

effective measure for the smooth business.

The top management officials all have had reputed of banking experience, skill and
proficiency.

4.4.2. Weaknesses

The advertising and promotional activities of this bank are up to the mark.

Reference appointment is very much effective in UBL. As a result of this there are many
who are only drawing salaries at the end of the month but making a minimum
contribution towards the organization.

There are some officers who work hard but are not appreciated by the authority.

AIBL has not set up proper network system among branches.

A remarkable portion of the total human resources is inefficient.

The bank does not have any research and development division.

4.4.3. Opportunities

The bank can introduce more innovative and modern customer service to better survive in
the competition.

They can also offer micro credit business for individual and small business.

It is high time that they should move toward the online banking operation; because some
banks are already introduce the online banking operation.

Bank will be able to accommodate knowledgeable. Skilled, experience and hard working
person by offering attractive remunerations and fringe benefits with nice working
environment.

By expending the financial policy with credit facility customer are very much secure in
business environment.

4.4.4. Threats

Central bank (Bangladesh bank) is always supervising the local and foreign banks in
Bangladesh and sometimes it is hampering the normal operation of private bank.

Through the innovation working is in continuous process, but the other rival banks are
copying it within the short time.

The world in advancing toward technology very fast. Though UBL taken effort to join the
stream, it is not possible to complete the mission due to the poor technological
infrastructure of our country.

The contemporary banks of UBL like National Bank, Dutch Bangla Bank, Prime Bank
are its major rivals.

They are carrying our aggressive campaign to attract lucrative corporate client as well as
big time depositor.

Local competitors can also capture a huge market share by offering similar products and
services provided by the bank.

Recommendations and Conclusion

5.1 Recommendations
As per earnest observation some suggestion for the important of the situation are given below:

To attract more clients UBL has to create a marketing strategy, which will increase the
total exporter-import business.

Effective and efficient initiatives are necessary to recover the default loans.

Attractive incentives package for the exporter will help to increase the exporter and
accordingly if well diminish the balance of payment gap of UBL.

Long-term training very much required for the foreign exchange official.

Places, Firstly it is registered on the supplementary sheet, then it come for computer
posting and lastly it comes to the section in charge for verification of the signature and
for cancellation, after that it goes to the cash payment officer for final payment, for this
system, the client has to frequently enquire that whether his/her check has been passed
for payment or not, also it takes their valuable time, so. UBL needs to change this system
and move on to a better Cheque passing system.

Due to lack of one stop service, the client of UBL ha to move on from one desk to
another. Now in modern banking system, this type of movement is considered as one type
of harassment.

The bank should launch new products such as auto teller machine, tele bank etc for
betterment of customer services.

Strict supervision must be adopted in case of high-risk borrowers. Time to time visit the
project should be done by the bank officials.

5.2 Conclusion
Banking sector being a service of Bangladesh continues to contribution to a great in the economy
of Bangladesh, Uttara Bank Ltd. Is one of the leading banking services of the country.

I also think that there is bright future waiting for the Uttara Bank Ltd. Another thing I have to
mention here that the UBL is going through he oath in which they need to go and as like today it
will bring more and welfare oriented activities in the banking sector in the years to come.