Assignment Credit

A competitive Study Report
on
“Credit Products of UCBL and The City Bank
Ltd.”
Submitted By:
Mohammad Hanif Chowdhury

Executive Officer
Amborkhana Branch
Sylhet.
Date of Submission: November

04, 2012
1
Table of Contents
Name of Topics Pages

Introduction 3-4
Overview of United Commercial Bank Ltd. 5
Product/Service Offering by UCB 6
Vision of UCBL 6
Mission of UCBL 6
Strategies of UCBL 6-7
Functions of UCBL 8
Departments of UCBL: 8
Credit/Asset Products Offered by UCB 9-18
Retail Products of UCB 19-33
SME Products of UCB 34
Overview of The City Bank Ltd. 35-36
Products Offered by CBL: 37
Vision of CBL 37
Mission of CBL 37
Strategies of CBL 38
Functions of CBL 39
Departments of CBL 39
Credit Products Offered by CBL 40-41
Retail Products of CBL 42-44
SME Products of CBL 44-47
Competitive Analysis on Retail Products of CBL & 48-52
UCBL
Conclusion 52
Introduction
2
The financial system of Bangladesh is comprised of three broad fragmented
sectors:
1. Formal Sector,
2. Semi-Formal Sector,
3. Informal Sector.
The sectors have been categorized in accordance with their degree of

regulation.
The formal sector includes all regulated institutions like Banks, Non-Bank
Financial Institutions (FIs), Insurance Companies, Capital Market
Intermediaries like Brokerage Houses, Merchant Banks etc.; Micro Finance
Institutions (MFIs).
The semi formal sector includes those institutions which are regulated
otherwise but do not fall under the jurisdiction of Central Bank, Insurance
Authority, Securities and Exchange Commission or any other enacted
financial regulator. This sector is mainly represented by Specialized
Financial Institutions like House Building Finance Corporation (HBFC), Palli
Karma Sahayak Foundation (PKSF), Samabay Bank, Grameen Bank etc.,
Non Governmental Organizations (NGOs and discrete government
programs.
The informal sector includes private intermediaries which are completely

unregulated.
After the independence, banking industry in Bangladesh started its journey

with 6 Nationalized commercialized banks, 2 State owned Specialized banks
and 3 Foreign Banks. In the 1980's banking industry achieved significant
expansion with the entrance of private banks. Now, banks in Bangladesh
are primarily of two types:
 Scheduled Banks: The banks which get license to operate under Bank
Company Act, 1991 (Amended in 2003) are termed as Scheduled
Banks.
 Non-Scheduled Banks: The banks which are established for special

and definite objective and operate under the acts that are enacted
for meeting up those objectives, are termed as Non-Scheduled
Banks. These banks cannot perform all functions of scheduled banks.
There are 47 scheduled banks in Bangladesh who operate under full

control and supervision of Bangladesh Bank which is empowered to do so
through Bangladesh Bank Order, 1972 and Bank Company Act, 1991.
Scheduled Banks are classified into following types:
3
 State Owned Commercial Banks (SOCBs): There are 4 SOCBs which
are fully or majorly owned by the Government of Bangladesh.
 Specialized Banks (SDBs): 4 specialized banks are now operating
which were established for specific objectives like agricultural or
industrial development. These banks are also fully or majorly owned
by the Government of Bangladesh.
 Private Commercial Banks (PCBs): There are 30 private commercial
banks which are majorly owned by the private entities. PCBs can be
categorized into two groups:
 Conventional PCBs: 23 conventional PCBs are now operating in the
industry. They perform the banking functions in conventional fashion
i.e interest based operations.
 Islami Shariah based PCBs: There are 7 Islami Shariah based PCBs
in Bangladesh and they execute banking activities according to Islami
Shariah based principles i.e. Profit-Loss Sharing (PLS) mode.
 Foreign Commercial Banks (FCBs): 9 FCBs are operating in
Bangladesh as the branches of the banks which are incorporated in
abroad.
There are now 4 non-scheduled banks in Bangladesh which are:
 Ansar VDP Unnayan Bank,

 Karmashangosthan Bank,
 Probashi Kollyan Bank,
 Jubilee Bank.
4
Overview of United Commercial Bank
Ltd.
United Commercial Bank (UCB) 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 networks of 110
branches in six different districts. United Commercial Bank offers all kinds of
Commercial Corporate and Personal Banking services include Corporate
Banking, Retail Banking and Consumer Banking right from industry to
agriculture, and real state to software.
United Commercial Bank (UCB) is a Bangladesh based financial institution

that provides banking services. The services include personal and business
banking, loans, credit cards, online banking and money transfer services.
The bank operates in Bangladesh, where it is headquartered in Dhaka. With
its firm commitment to the economic development of the country, the Bank
has already made a distinct mark in the area of Private Sector Banking
through personalized service, innovative practices, dynamic approach and
efficient Management. The Bank, aiming to play a leading role in the
economic activities of the country, is firmly engaged in the development of
trade, commerce and industry thorough a creative credit policy.
United Commercial Bank Limited incorporated on 26 June, 1983 as a public

company with limited liability under the Companies Act 1993. The bank
obtained permission to commence business with effect from 27 June, 1983
and started banking operations on 29 June 1983 with an authorized capital
of Tk. 100 million divided into 1 million ordinary shares of Tk. 100 each.
Corporate Information of UCBL:
Registered Name United Commercial Bank Limited
Registered Head Office Bulus Center

CWS(A)-1, Gulshan Avenue,
Dhaka-1212, Bangladesh.
Chairman Mr. Alhaj Akhtaruzzaman Chowdhury,

MP
Managing Director Mr. M. Shahidul Islam

(Current Charge)
Number of Branches 125
Product/Service Offering by UCB
The bank provides a wide range of financial services to its customers and corporate clients.
The
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Products and Services of UCB are as follows:
Products Services
 UCB Multi Millionaire  Import Finance

 UCB Money Maximizer  Export Finance
 UCB Earning Plus  Working Capital Finance
 UCB DPS Plus  Loan Syndication
 UCB Earning First Fixed Deposit  Underwriting and Bridge Financing
 UCB Youngsters’ Savings Account  Trade Finance
 UCB Royal Savings Deposit  Industrial Finance
 Time Deposit Scheme  Foreign Currency Deposit A/C
 Monthly Savings Scheme  NFCD (Non Resident Foreign Currency
 Deposit Insurance Scheme Deposit Account)
 Inward & Outward Remittances  RFCD (Resident Foreign Currency Deposit
 Travelers Cheque Account)
 Consumer Credit Scheme
 Locker Service
 SMS Banking Service
 Credit Card
 Online Service
 Western Union Money Transfer
 One Stop Service
Vision of UCBL:
To offer financial solutions that create, manage and increase our client’s
wealth while improving the quality of life in the communities we serve.
Mission of UCBL:
To be the bank of first choice through maximizing value of our clients,

shareholders and employees and contributing to the national economy with
social commitments.
Strategies of UCBL:
UCBL believes in the practice of Market-Oriented Strategic Planning,

developing and
maintaining a viable fit between the organization’s objectives, skills and
resources. The
aim of such approach is to shape and reshape the bank’s businesses and
services so that
they yield target profits and growth.
Strategic planning of UCBL :
The strategic planning of UCBL consists of two organizational levels, which

are
 Location Based Strategy
 Business Level Strategy
6
Location Based Strategy of UCBL:
Since the growth and profits of banking business largely depend upon the
locations of branches
Where large concentration of other businesses and industries are involved,
UCBL Main Strength is
Its location based strategy.
The 125 branches of UCBL are divided into six different regions, which are:
 Dhaka Division, comprising 56 branches.

 Chittagong Division, comprising 40 branches
 Rajshahi Division comprising 06 branches
 Khulna Division, comprising 06 branches
 Barishal Division, comprising 1 branches
 Sylhet Division, comprising 14 branches
 Rangpur Division, comprising 02 branches
The concentration of businesses and lifestyles of the people are not the
same in these seven areas.
So, the strategies of the seven areas differ from one another; but they are
designed with distinctive
local touch. Head office constantly monitors the progresses of all the seven
areas.
Business Level Strategy of UCBL:
 Develop strategy and operational structure for the Bank’s rural and
urban expansion.
 Propose optimal low cost delivery channels beyond the physical
expansion through branches
Functions of UCBL:
UCBL performing following functions:

 Borrow money from different institutions and individual.
 Lending with or without security for local and international trade.
 Carrying out functions of foreign trade and foreign exchange business
including opening L/C, issuance of T/C, credit card, promissory note,
approved securities etc.
 Buying and selling foreign currencies.
 Participates in the capital market as stock-broker and as a portfolio
investor.
 Reliable safe custody of valuables.
 Providing excellent remittance facilities.
7
 Provides withdrawal facilities of deposits.
Departments of UCBL:
 Human Resources Management Division

 Learning & Development Center
 Finance& Accounts Division
 Internal Control & Compliance Division
 General Banking & Development Division
 Retail Banking Division
 Corporate Banking Division
 Treasury Division
 International Division
 Credit Risk Management Division
 SME Division
 Card Division
 Information & Technology Division.
Credit/Asset Products Offered by UCB
Corporate Retail Products SME Products

Banking
 Working capital  Home Loan UCB- Disha

Finance  Auto Loan UCB-Odammaya
 Trade Finance  Doctors Loan UCB-Uddom
 Fixed term loan  Marriage Loan UCB-Nistha
 Short/Mid Term  Any Purpose Loan UCB-Mohoti
Finance  Education Loan UCB-Unmesh
 Project Finance  Hospitalization Loan UCB- Sreejon
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 Advance against Salary UCB- Bikash
Loan
 Travel Loan
 CNG Conversion Loan
 Home Mortgage Loan
 Household Durable Loan
Fixed term loans:

Fixed Term Loans are the non-revolving loans made by the Bank with fixed
Repayment schedules. Fixed term loans are categorized into three
categories
based upon its tenure which is defined as follows:
Short term : Upto 12 months

Medium term : More than 12 and upto 36 months
Long Term : More than 36 months
Continuous Loans :
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.
Demand Loan:
These are the non-revolving loans which are neither continuous nor fixed
but
have to be repaid on demand.
Furthermore all categories of loans are accommodated under the 7 prime

sectors which are as under:
Agriculture:
Credit facilities provided to the customers who transact agro business falls
under this category. It is divided into two major sub-sectors:
a) Loans to primary producers: This sub-sector of agricultural financing

refers to the credit facilities allowed to production units engaged in
farming, fishing, forestry or livestock.
Loans to processors or traders of agricultural products are not to be

categorized as agricultural loans. Loans to tea gardens for production
are treated as agricultural loan, but loans to tea gardens for export will
be treated as "Export Credit". Similarly medium and long-term loans to
tea gardens are categorized as industrial term lending.
9
b) Loans to input dealers/distributors: It refers to the financing allowed to
input dealers and (or) distributors in the agricultural sectors.
Loan to Agriculture sector may include short, medium and long term loans
as well as continuous credits. As a product, it may fall under Term Loan/
Time Loan/Hire-Purchase/Lease Finance/Cash Credit/Overdraft etc.
Term Loan to Large & Medium Scale Industry:
This category of advances accommodate the medium and long term

financing for capital asset formation of new Industries or for BMRE of the
existing units who are engaged in manufacturing of goods and services.
Term loan to tea gardens may also be included in this category depending
on the nature and size.
As the financing under this category have fixed repayment schedule it may
fall under the heads Term Loan/Time Loan /Hire-Purchase/Lease Financing
etc.
Term Loans to Small & Cottage Industries:
These are the medium and long term loans allowed to small & cottage
manufacturing industries [Regulatory definition of Small Enterprise
means an entity, ideally not a public limited company, does not employ
more than 50 persons (if it is manufacturing concern) and 25 persons (if it is
a trading and service & trading concern with total assets at cost excluding
land and building from Tk.50,000 to Tk. 50 lac, manufacturing concern with
total assets at cost excluding land and building from Tk.50,000 to Tk. 1.5
crore.]. Medium & Long term loans to weaver are also included in this
category. Like the Large & Medium Scale Industry it is also allowed in the
form of Term Loan/Time Loan/Hire Purchase/Lease Financing etc.
Working Capital:
Loans allowed to the manufacturing units to meet their working capital

requirements, irrespective of their size - big, medium or small, fall under
this category.
These are usually continuous credits and as such fall under the head "Cash
Credit" or “Overdraft”.
Export Credit:
Credit facilities allowed to facilitate export of all items against Letter of

Credit and/or confirmed export orders fall under this category. It is
accommodated under the heads "Export Cash Credit (ECC)", Packing Credit
(PC), Foreign Documentary Bill Purchased (FBPD), Inland Documentary Bill
Purchased (LBPD) etc.
10
Commercial Lending:
Short term Loans and continuous credits allowed for commercial purposes
other than exports fall under this category. It includes import financing for
local trade, service establishment etc. No medium and long term loans are
accommodated here. This category of advance is allowed in the form of (I)
Loan against Imported Merchandise (LlM), (ii) Loan against Trust Receipt
(LTR), (iii) Payment Against Documents (PAD), (iv) Overdraft (OD), (v) Cash
Credit etc. for commercial purposes.
Others :
Any loan that does not fall in any of the above categories is considered
under the category "Others". It includes loan to (i) transport equipments, (ii)
construction works including housing (commercial/residential), (iii) work
order finance, (iv) personal loans, etc.
Types of Credit Facilities:
The following are the existing credit products of United Commercial Bank
Limited covering term loan, export lending, working capital & commercial
lending. The products are subject to review and amendment of the
product/launching new product will be carried out on a continuous basis.
Depending on the various nature of financing, all the credit facilities have
been brought under two major groups: (a) Funded Credit and (b) Non-
funded Credit. Under Funded Credit, following are the products of UCBL:
Seria Name of the Description Purpose Tenor

l No. Facility
(Max)
Funded
1. SOD(FO) Secured Overdraft General purpose 12 months
100% cash covered
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2. TOD Temporary overdraft General Purpose 60 days
Forced Loan
3. PAD(Sight) Payment against Advance against 21 days
Document (Foreign- Sight L/C
sight)
Forced Loan
4. PAD(EDF) Payment against Advance against 21 days
Document (EDF) EDF L/C
Forced Loan
5. PAD (A/G/B) Payment against Advance against 21 days

documents (A/G/B) LC (A/G/B)-
Forced loan
6. PAD (Local) Payment against Advance against 21 days
document (Local- sight) Sight L/C (Local)
– Forced loan
7. PC Packing Credit against To finance 120 days

Export L/C & Export against Export
(RMG & other Order L/C
than RMG)
To finance
against Export
Order
Pre-shipment
Finance
8. ECC Export Cash Credit Financial LC
accommodation validity/18
(New) to a customer for 0 days
export of goods
under export LC
and allowed a
certain
percentage of
Export
LCs/Contract
Liquidated out of
export proceeds
9. BFL Bridge Financing Loan Support Equity 12-36

months
10. TRL Transport Loan To finance 36-48

commercial months
Transport

l No. Facility
(Max)
12
11. HBL(Com) House Building Loan - To finance 36-96
Commercial commercial months
house/
apartment
12. HBL(Res) House Building Loan - To finance 60-120

Residential residential months
building /
apartment
13. LTR Loan against Trust To finance import 180 days

Receipt L/C
14. HBL(S) House Building Loan – To finance 15 years

Staff personal
house/apartment
15. CC(Hypo) Cash Credit against To finance 12 months

hypothecation of Inventory
Inventory and Book
Other Business
Debts
operations
General purpose
16. CC(Pledge) Cash Credit against To finance 12 months
Pledge of Inventory pledged
Inventory
17. Loan General Loan General (w.c) Short term, 12-36

medium term months
(New) loans allowed for
specific purpose
for definite
period and
repayable by
installments.
18. FBPD Foreign Bill Purchased & To purchase As per LC

Discounted /discount/ Terms
negotiate export
documents
against
Sight/Usance
Export L/C
19. LBPD Local Bill Purchased & To purchase As per LC

Discounted /discount against Terms
local usance L/C
180 days
20. LPCS(S) Loan under Personal To finance 36 months

Credit – Scheme (Staff) personal
consumable
items
21. CL(S) Car Loan – Staff To finance 5 years
13
personal car
22. FL(S) Furniture Loan – Staff To finance 72 months

personal
furniture
23. LIM Loan against Imported To finance 180 days

Merchandise pledged imported
(Rename) merchandise
under pledge

l No. Facility
24. Term Loan Term Loan against fixed To finance fixed Over 1year
assets asset max 7
years
25. Time Loan Time Loan against Other To finance 12
Security/Collateral/Supp business months
ort operations/work
order/Industrial
working capital
To finance fixed
asset
To finance
duty/tax
General purpose
26. OAP Own Acceptance Advance allowed 90 days
Purchase for purchasing
foreign currency
for payment
against LCs
(Back to Back)
where the
exports do not
materialize
before the date
of import
payment
Forced Loan
27. OD(General) Overdraft against Other To finance 12 months
Security Collateral business
operations/Indust
ry operations
Misc. purpose
28. CP(Local) Cheque Purchase (Local) To 30 days

purchase/discoun
t Cheque, Bank
Draft, and
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Payment Order
29. CP (Foreign) Cheque Purchase To 45 days
(Foreign) purchase/discoun
t foreign
currency Cheque,
Bank Draft, and
Payment Order
30. Consumer Credit Consumer credit To finance Over 12

Scheme (CCS) provided to middle class purchase of months
(New) income group consumer Max 60
durable by the months
fixed income
group to raise
their standard of
living.
31. Hire Purchase Hire purchase To finance capital Over 12

machinery, months
(New)
equipment and Max 60
vehicle months
Installment credit
Borrower agrees
to take the goods
on hire at a
stated rental
Repayment is
inclusive of
Principal as well
as Interest for
adjustment

l No. Facility
(Max)
32. Lease Financing Lease finance To finance capital Over 1
machinery, year max
(New) equipment and 5 years
vehicle
Exclusive right to
use the asset by
the leaseholder
for an agreed
period against
payment of rent.
33. OD (Work Order) Overdraft against work Advance against 06 months

order assignment of to 36
(New) work order/ bill months
for execution of
15
contractual
works
Not a continuous
credit rather time
loan
34. OD(EM) Over Draft for Earnest To pay earnest 90 days

Money money
(New)
Under non-funded credit, there are basically two major products namely
Letter of Credit and Letter of Guarantee. Following are the non-funded
products of UCBL:
Serial Name of the Description Purpose Tenor

No. Facility
Non –Funded
1 BFC (Local) Bills for Collection – Collection of As per
Local local outstation rules/term
cheques/ s
Drafts/Document
s
2. BFC (Foreign) Bills for Collection – Collection of As per

Foreign foreign cheques/ rules/term
Drafts/Document s
s
3. LG(Local) Letter of Guarantee - For contractual Specific
Local obligation (Bid- period
Bond, Payment
Guarantee,
Advance
Payment
Guarantee,
Performance
16
Guarantee,
Customs
Guarantee,
Shipping
Guarantee)
4. LG(Foreign) Letter of Guarantee – For contractual Specific
Foreign obligation and period
others
Serial Name of the Description Purpose Tenor
No. Facility
(Max)
5. SLC(Local) Sight Letter of Credit – For local As per LC

Local procurement Terms
Recourse on title
to local
document
6. SLC(Foreign) Sight Letter of Credit – For foreign As per LC
Foreign procurement Terms
under sight L/C
Recourse on title
to import
document
7. SLC(EDF) Sight Letter of Credit – For importation As per LC
EDF under sight EDF Terms
L/C
Recourse on title
to import
document
8. SLC (A/G/B) Sight Letter of Credit For Importation As per LC
(Aid/ Grant/ Barter) under (A/G/B) Terms
9. ULC(Normal) Usance Letter of Credit For importation 12

under usance L/C months
Recourse on (Max)
sales
10. ULC(BB) Usance Letter of Credit – For importation As per LC
Back to Back under back to Terms
back usance LC
Recourse on
export
11. Acceptance Acceptance against To finance assets As per LC
Usance Letter of Credit thru banker’s Terms
(Normal)
acceptance
Recourse on
sales
12. Acceptance Acceptance against To finance assets As per LC
17
(Back to Back) Back to back usance thru banker’s Terms
Letter of Credit acceptance
Recourse on
export
13. Fwd FX Forward Contract Cover exchange 180 days

risk against
Letter of Credit
Performance Risk
RETAIL PRODUCTS OF UCB
Home Loan
1: Customer Segment:
Any Bangladeshi (Singly or jointly with other co-owners/co-borrowers e.g.
spouse/son). To be more specific the following group of people will be
eligible for United Commercial Bank Home Loan:
Salaried people:
(a) Employees of Govt./ Semi Govt./ Autonomous body
(b) Employees of financial institution
(c) Employees of different Public Limited Company/ Private Limited
company having Corporate Structure
(d) Teachers of any school/ college/ university
Professional:
(a) Doctor
(b) Engineer
(c) Accountants
Self-Employed:
Businessman (in business at least for 02 years), Land lord having significant
rent income, etc
2: Purpose:
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(a) Purchasing apartment/ House (if old not older than 10 years)
(b) Construction of Building
(c) Taking over of House Building Loans from other Banks/ Non Banking
Finance Institutions.
(d) Renovation of Existing House/Flat (if old not older than 10 years)
(e) Construction of Semi Pucca/Tin Shed Building
3: Age Limit:
Up to 65 years (Repayment age)
4: Loan Size:
United Commercial Bank provides Home Loan up to Tk. 75 lac (Taka
Seventy Five lac) only.
5: Interest Rate:
15.00% p.a. with quarterly rests.
6: Maximum Term of Loan:
Particular Maximum Loan repayment period

grace period (years)
(months)
Construction of new house Up to 18 Up to 20
Purchase of new Up to 18 Up to 20
apartment under
construction
Purchase of new ready Up to 06 Up to 20
apartment/ house
Purchase of old house/ Up to 03 Up to 20
apartment (not older than
10 years)
Taking over loan Nil Remaining loan period with
existing financer or 15 years
which ever is lower
Renovation Up to 03 Up to 10
Semi Pucca Construction Up to 03 Up to 10
7. Other charges:
Service Charge: 1.00% on loan amount or minimum Tk. 1000/- + 15% VAT
Risk Fund: Nil
Auto Loan
We may allow loan under the Auto Loan Scheme for purchasing Car, Jeep,
Station Wagon, Pickup Van, and Covered Van capacity upto 3000 Kg.
1. Customer Segment:
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Employees of Government, Semi Government, Autonomous, Sector
Corporations, Professionals, Businessman and Self Employed person who
have regular and monthly fixed income to repay the loan.
2.Age Limit:
 Minimum age (years) 25

 Maximum age (years) 65 years at the time of
maturity of Loan.
3.Minimum Income:
TK . 20,000 for salaried individuals and Tk. 40,000 for businessman
4. Loan Size
Tk. 20, 00,000 for both Brand new & Reconditioned Cars.
5. Security:
i).02 Personal Guarantee
ii).6 undated cheque
iii).Registration of the vehicle in joint name of the Bank
6. Interest Rate:
18% p.a. with quarterly rests.
7. Maximum Term of Loan:

05 (Five) years
8. Other charges:
Service Charge 1% on loan amount or Tk. 1,000/- whichever is higher +
15% VAT on Service Charge
Doctors loan
Any Bangladeshi Citizen who is a graduate in Medical Science/Dentist/Eye/
Allopathic as self employed or salaried people has the means and capability
to repay the loan.
2. Purpose:
Small scale purchase of different medical equipments, machineries, tools or
other relevant items to support professional needs (e.g. run or set up a
Clinic/Hospital/Dispensary)
3. Age Limit:
 Maximum age (years) 65 years at the time of maturity of loan.
4. Minimum Service/length of business:

 For salaried individual, must be confirmed employees of an
established organization.
 For self employed individual, a professional experience of minimum
2 years
20

5. Minimum Income:
TK .10,000/- for salaried individuals and Tk. 25,000 for self employed
6. Loan Size:
 Tk. 5,00,000/- for General Practitioner
 Tk. 10,00,000/- for specialist doctors i.e. holding post graduation
degree
7. Security:
i). Ownership of the Medical Equipment’s to be purchased must be
Hypothecated of the Bank.
ii). 01 Personal Guarantee
iii). 6 undated Cheques
8. Interest Rate:
18% p.a. with quarterly rests.

Maximum 5 (five) Years
10. Other charges:

Service Charge: 1.00% on loan amount or Tk. 1,000/- whichever is higher +
15% VAT on Service Charge.
Advance Against Salary
 Employees of reputed Multinational Companies and large local

corporate.
 Employees of medium sized or mid-range local companies such as
reputed schools & colleges, pathology labs, hospitals, restaurants,
hotels, newspapers, airlines, real-estate developers of repute,
insurance & leasing companies, NGOs, aid agencies, UN bodies,
reputed trading firms and business establishments and all other
salaried employees including employees of Government, Semi-
government & Autonomous bodies.
2. Purpose:
To meet the financial need for any acceptable purpose
3. Age Limit:

maturity of loan.
4. Minimum Service length:
21
 For salaried individual, minimum total service length of 2 years
 Govt. employees must be confirmed on job
5. Loan Size:
 8 times of gross salary where the Organization of the applicant would

have Memorandum of Understanding with our Bank subject to
highest Tk. 5,00,000/-
 6 times of gross salary where the Organization of the applicant would
have not Memorandum of Understanding with our Bank subject to
highest Tk. 5,00,000/-
6. Security:
i). 6 undated Cheques

ii). 02 Personal Guarantees
7. Interest Rate:

Maximum 4 years.
9. Other charges:
Service Charge 1% on loan amount or Tk. 1,000/- whichever is higher +

15% VAT on Service Charge.
Any purpose Loan
Any Bangladeshi individual, who has the means and capacity to repay the
loan. In specific terms, the target customers should cover salaried
executives of multinational Companies, middle to large size local corporate,
Government officials, Officials working in Semi- Government, Autonomous
and reputed NGOs (Non Government Organizations), international aid
agencies & UN bodies, any tax paying businessmen of repute, any
employed / self-employed tax-paying individual having a reliable source of
income.
2. Purpose:
Miscellaneous personal financial requirements. The customer has to declare

the purpose of the loan but submission of supporting document is not
mandatory. Purpose may be as follows: -
 House Maintenance
 Marriages in the family
 Advance rental payments
 Hospitalization or other emergency medical needs
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 Trips abroad
 Purchase of miscellaneous household appliances
 Purchase of personal computers
 Purchase of electronic items
 Purchase of furniture/ Purchase of household durables
 Other acceptable purpose not mentioned above but no facilities can
be granted for purposes that are legally in contradiction with the law
of the land. It is therefore advisable that the dealing officer knows the
purpose of the facility and records the same.
3. Nationality:
Bangladeshi only
4. Age Limit:

maturity of loan.
 For salaried individual, minimum service length of 02 year and must

be a confirmed employee.
 For self employed individual, a business record of minimum 03 years
6: Minimum Income:
 TK .12,000 for salaried individuals and Tk. 25,000 for businessman

(for rented people)
 Tk. 10,000 for salaried individuals and Tk. 15,000 for businessman
(who are residing in his/her own or family residence)
 Tk. 10,000 for employees of Government, Semi government and
Autonomous bodies
7: Loan Size:
 Tk. 10,00,000/- Maximum
8. Security:

ii). 02 personal Guarantee
9. Interest Rate:
Maximum 4 years
11. Other charges:
23
Service Charge: 1% on loan amount or Tk. 1,000/- whichever is higher +
Education Loan

corporate.
 Any tax paying businessmen of repute, any employed / self-employed
tax-paying individual having a reliable source of income
2. Purpose:
For educational purposes like study in abroad or within the country.
3. Nationality:
Bangladeshi only
4. Age Limit:

 Maximum age (years) 65 years at the time of maturity of
loan
5. Minimum Service /length of business:

6. Minimum Income:

(for rented people)
24
Autonomous bodies
7. Loan Size:
Tk. 500,000/- Maximum
8. Security:
i). 2 Personal Guarantee

ii). 06 undated Cheques
iii). Lien of FDR/Other saving schemes (if any)
9. Interest Rate:
18% p.a. with quarterly rests
Maximum 4 years
11. Other charges:

Travel Loan

corporate.
2. Purpose:
To meet the financial need for travel purposes.
25
3. Nationality:
Bangladeshi only
4. Age Limit:

 Maximum age (years) 65 years at the time of maturity of
loan

6. Minimum Income:

(for rented people)
Autonomous bodies
7. Loan Size:
Tk. 200,000/-
8. Security:

9. Interest Rate:
18.5% p.a. with quarterly rests (1% less if secured at least by 50% in the
form of Fixed Deposit)
 Maximum 3 years.
11. Other charges:

26
Marriage Loan

corporate.
2. Purpose:
To meet the financial need for marriage purposes.
3. Nationality:
Bangladeshi only
4. Age Limit:


6. Minimum Income:
 TK. 10,000 for salaried individuals and Tk. 25,000 for businessman
(for rented people)
7. Loan Size:
Tk. 300,000/-
9. Security:

10. Interest Rate:
27
18.5% p.a. with quarterly rests
Maximum 3 years.
12. Other charges:

Hospitalization Loan

corporate.
2. Purpose:
To meet the financial need for treatment purposes in the following

hospitals/clinics of Dhaka and Chittagong:-
28
 BIRDEM  National Heart Foundation
 Holy family Hospital  CMH, Dhaka
 Central Hospital  Apollo Hospital
 Monwara Hospital  United Hospital
 Samrita Hospital  Medical Center, Chittagong
 Medinova  Metropolitan Hospital, Chittagong
 Comfort Diagnostic  Royal Hospital, Chittagong
Center & Hospital  Holy Crescent, Chittagong
 Metropolitan Hospital  Health Home, Chittagong
 Square Hospital  Health Care, Chittagong
 Bangladesh Medical  Poly Clinic, Chittagong
 Sikder Medical  Nebedita Hospital, Chittagong
 Ibne Sina Hospital  Niramoy Clinic, Chittagong
 Dhaka Renal Center  Holy Health, Chittagong
 Gastro lever Clinic  Sergiskop Clinic, Chittagong
 Islami Bank Hospital  CMH, Chittagong
 LabAid
Cardiac/Specialized
3. Age Limit:



5. Minimum Income:
 TK 12,000 for salaried individuals and Tk. 25,000 for businessman

(for rented people)
Autonomous bodies
6. Loan Size:
Tk. 500,000/-
7. Security:

8. Interest Rate:
18.50% p.a. with quarterly rests (1% less if secured at least by 50% in the
29
form of Fixed Deposit)
Maximum 2 years.
10. Other charges:

CNG Conversion Loan
Any Bangladeshi individual who has the means and capacity to repay the
income.
2. Purpose:
For converting vehicles from carbon based fuel to Compressed Natural Gas
system.
3. Age Limit:

 For salaried individual, minimum total service length of 02 years

 Govt. employees must be confirmed on job
5. Minimum Income:

(for rented people)
Autonomous bodies
30
6. Loan Size:
Tk. 100,000/-
7. Security:
 Post dated cheques based on the loan tenor

 Personal Guarantee from two persons having minimum
solvency/income not less than that of the applicant supported by
income proof
8. Interest Rate:
Maximum 1.5 years.
10. Other charges:

Household Durable Loan
Any Bangladeshi individual who has the means and capacity to repay the
income.
2. Purpose:
For purchasing of household items like TV, Freeze, Furniture, Electronics

items etc.
3. Nationality:
Bangladeshi only
4. Age Limit:

31

6: Minimum Income:

(for rented people)
Autonomous bodies
7. Loan Size:
 Tk. 10,00,000/- Maximum

8. Security:

ii). 02 personal Guarantee
9. Interest Rate:
Maximum 4 years
11. Other charges:

32
33
Overview of The City Bank Ltd.
City Bank Limited is the first private sector Bank in Bangladesh. The Bank
has been operating since 1983 with an authorized capital of Tk. 1.75 Billion
under the entrepreneurship of twelve prominent & leading businessman of
the country. The noble intention behind starting this Bank was to bring
about qualitative changes in the sphere of Banking and Financial
management. Today City Bank serves its customers at home & abroad with
86 branches spread over the country & about three hundred oversea
correspondences covering the entire major cities and business center of the
world.
The services encompass wide diversified areas of trade, commerce &

industry which tailored to the specific needs of the customers and are
distinguished by an exceptional level of prompt and personal attention.
Over the years, the Bank has expanded the spectrums of its services. City
Bank has already introduced some new Banking products like Duel Currency
Credit Cards, ATM and Online services which have created attraction among
the clients. The Bank is going to introduce real time Internet, SMS and
Phone Banking systems with all modern delivery channels at an early date.
For significant performance, The Bank has earned national & international
recognition. City Bank Limited was one of the 12 Banks of Bangladesh
among the 500 Banks in Asia for its asset, deposit & profit as evaluated by
"ASIA WEEK" In the Year 2000. Other than that, City Bank received the "Top
Ten Company" award from the Prime Minister of the People's Republic Of
Bangladesh.
The City Bank is one of the oldest private Commercial Banks operating in
Bangladesh. The City Bank is among the very few local banks which do not
follow the traditional, decentralized, geographically managed, Branch based
business or profit model. Instead the bank manages its business and
operation vertically from the head office through 4 distinct business
divisions namely
i) Corporate Investment Banking
ii) Retail Banking (including cards)
iii) SME Banking &
iv) Treasury & Market Risks
Under a real-time online banking platform, these 4 business divisions are

supported at the back by a robust service delivery or operations setup and
also a smart IT Backbone. Such centralized business segment based
business & operating model ensure specialized treatment and services to
the bank's different customer segments.
34
The bank currently has 86 online branches spread across the length &
breadth of the country that include a fully fledged Islamic Banking branch.
Besides these traditional delivery points, the bank is also very active in the
alternative delivery area. It currently has 26 ATMs of its own; and ATM
sharing arrangement with a partner bank that has 225 ATMs in place; SMS
Banking; Interest Banking and so on. Soon its Customer Call Center is going
to start its operation. The bank has a plan to end the current year with 50
own ATMs. City Bank is the first bank in Bangladesh to have issued Dual
Currency Credit Card. The bank is a principal member of VISA international
and it issues both Local Currency (Taka) & Foreign Currency (US Dollar) card
limits in a single plastic. VISA Debit Card is another popular product which
the bank is pushing hard in order to ease out the queues at the Branch
created by its astounding base of some 400,000 retail customers. The
launch of VISA Prepaid Card for the travel sector is currently underway.
City Bank prides itself in offering a very personalized and friendly customer
service. It has in place a customized service excellence model called GAP
(Graceful-Appropriate-Pleasing) that focuses on ensuring happy customers
through setting benchmarks for the bank's employees' attitude, behavior,
readiness level, accuracy and timelines of service quality.
City Bank is one of the largest corporate banks in the country with a current
business model that heavily encourages and supports the growth of the
bank in Retail and SME Banking. The bank is very much on its way to
opening many independent SME centers across the country within a short
time. The bank is also very active in the workers' foreign remittance
business. It has strong tie-ups with major exchange companies in the Middle
East, Europe, Far East & USA, from where thousands of individual
remittances come to the country every month for disbursements through
the bank's large network of 86 online branches.
The current senior management leaders of the bank consist of mostly

people from the multinational banks with superior management skills and
knowledge in their respective "specialized" areas. The bank this year, is
celebrating its 25th year of journey with the clear ambition of becoming the
no.1 private commercial bank in the country in 3 years time. The newly
launched logo and the pay-off line of the bank are just one initial step
towards reachingthat point.
Corporate Information of CBL:
Date of Incorporation March 14, 1983

Formal Inauguration March 27, 1983
Number of Branches 86
Paid up Capital 1,188,000,000
Total capital 3,156.25
Total asset 48,755.40
Total deposits 40,539.63
35
Products Offered by CBL:
City Bank Ltd. is a rapid growing commercial bank in the country. It’s
competing in the market
with wide range of product and services that plays a vital role in its
attainment. The CBL
concentrates the following categories of banking services-
Corporate Retail SME Islamic Banking Treasury

Banking Banking Banking
Working Capital Deposit CITY Manarah Overnight
Finance Muldhan Current Deposits
Loan Account
Trade Finance CITY Sheba Term Deposits
Debit Card Manarah
Short/Mid-Term CITY Shulov Savings Foreign Exchange
Finance Credit Card Account (Forex)
CITY Munafa
Project Finance NRB Manarah Term Local Currency
City Nokshi Deposit Spot & Forward
Islamic Finance NFB Derivatives
City Agro Manarah
Structured Finance City Global Monthly
SME Centre Deposit
Cash Management Accelerated
Banking Manarah
Investment Personal
Banking Deposit Finance
Rates
Schedule of Manarah Auto
Charges Schedule of Finance
Charges
Interest Rate on Manarah Hajj
Lending Deposit
Scheme
Manarah
Schedule of
Charges
Vision of City Bank Ltd:

“To be the leading bank in the country with best practices and highest
social commitment”
Mission of City Bank Ltd:

Mission of City Bank Ltd. is as follows:
 To contribute to the socio economic development of the country.
 To attain highest level of customer satisfaction through extension of
services
by dedicated and motivated team of professionals.
36
 To maintain continuous growth of market share ensuring its steady
growth.
 To maximize bank’s profits by ensuring its steady growth.
 To maintain the high moral and ethical standards.
 To ensure participative management system and empowerment of human
resources.
Strategies of CBL:
 Revisit organizational vision, mission and goals in relation to the five

year strategic plan to be developed.
 Competitor Analysis
 Formulate and prepare a documented five year business plan for the
bank with focus on the key business lines identified
 Verify and confirm assumptions and strategies and develop value
propositions for each business line.
 Organize and lead strategic workshop for the Bank’s Management
 Identify areas for consolidation that may lead to long-term sustained
competitive advantage for the Bank in target market.
Location Based Strategy of the CBL:
Since the growth and profits of banking business largely depend upon the
locations of branches where large concentration of other businesses and
industries are involved, CBL Main Strength is its location based strategy.
The 86 branches of CBL are divided into six different regions, which are:
1. Dhaka Division, comprising 39 branches.
2. Chittagong Division, comprising 15 branches
3. Comilla Division comprising 06 branches
4. Sylhet Division, comprising 09 branches
5. Bogra Division, comprising 10 branches
6. Khulna Division, comprising 07 branches
The concentration of businesses and lifestyles of the people are not the
same in these six areas. So, the strategies of the six areas differ from one
another; but they are designed with distinctive local touch. Head office
constantly monitors the progresses of all the six areas. The bank is not
interested in launching more branches. Currently CBL is focusing in
strengthening the existing branches.
Business Level Strategy of CBL:
 The business strategy of the Bank is to strengthen its retail business,

following a conservative
 lending approach. But the Bank’s major portion of the profit
generates from its Retail banking
 and SME Banking.
37
Functions of the CBL:
The bank performing following functions:
 Borrow money from different institutions and individual.
 Lending with or without security for local and international trade.
 Carrying out functions of foreign trade and foreign exchange business
including opening L/C, issuance of T/C, credit card, promissory note,
approved securities etc.
 Buying and selling foreign currencies.
 Participates in the capital market as stock-broker and as a portfolio
investor.
 Reliable safe custody of valuables.
 Providing excellent remittance facilities.
 Provides withdrawal facilities of deposits.
Departments of CBL:
 Human resources Department

 Finance Department
 Audit & Inspection Department
 Marketing Department
 Retail Banking & Consumer Banking Division
 Corporate Banking Division
 Treasury Division
 Trade Service & Correspondents Banking Division
 Loans and advance Division
 SME Banking Division
 Card Division
 Information & Technology Division.
38
CREDIT PRODUCTS OF CBL
Overdraft
Imports:
 Letter of Credit
 Back-To-Back Letter of Credit
 Deferred Letter of Credit
 Import bills for collection
 Shipping Guarantee
 Import Financing
 Performance bonds and other guarantees
Exports:
 Export letter of credit advising
 Export letter of credit safekeeping
 Export letter of credit confirmation
 Pre-shipment export financing
 Letter of credit checking and negotiation
 Export bills for collection
 Export invoice financing
 Document preparation
Short Term Financing:

As the responsive player in market, customers may anytime need fund to
utilize for a very short time due to either emergency or short term
projects.
In such case, City Bank is there to facilitate the customers. This can be a
Short Term Loan or a Short Term Revolving Loan. Customers can get it
either for their inland business or cross-border payment in foreign trade.
Mid Term Financing:

City Bank can also equip customers the required fund for a longer period. If
the customers worry about fund requirement for a bit longer, ‘City Bank
Term Loan’ will make the customers feel confident that, they got a friend
for this.
39
Project Financing:
City Bank is very active in their project financing solutions:
 Mitigate sponsor exposure to project risk.
 Enhance use of leverage to increase project returns by lowering the
weighted average cost of capital.
 Provide access to significantly longer tenor debt financings.
 Create optimum financing structures (source of debt, currency,
derivatives) that take into account the customers/company’s
particular capital needs as well as industry specific issues.
Lease and Long Term Loans:

They can customize a Term Loan or Lease to finance the fixed assets that
the customers’ business needs (such as land, new premises, equipment
and machinery). It may be a Greenfield project or an expansion of an
existing plant, that may be financed at competitive floating rate of
interest.
A leading provider of cost-efficient, lease-based and asset-based financing

solutions to businesses in Bangladesh, They can create and tailor the right
structured solutions for customers business needs in order to enhance
shareholders’ wealth and their market competitiveness.
Syndications:
This normally involves getting a group of banks together (forming a

syndicate) to provide the loan amount required by the customer under a
set of common terms and conditions laid down in a loan agreement.
40
RETAIL PRODUCTS OF CBL
“Your dream to build your own house” is only a matter of choice.

And when anyone do decide, this product will help him make his dream
come true.
Features
Loan amount BDT 3 Lac maximum BDT 1 crore.
Repayment tenor 1 year to 25 years
Financing up to 80% of property value
Rate of Interest is 19%
Processing fee of loan is 2 %
Loan against property
Eligiblity
Bangladeshi citizen within age limit of 22 years to 65 years
Minimum income for primary applicant
BDT 30,000/month for salaried & self-employed personal
BDT 40,000/month for business person & other personal
Minimum requirement of 2 (Two) years of experience for all

professionals
Salaried employee – Minimum 6 months permanent with current

employer
Contractual employee – Minimum 1 year of existing contract with

current employer
41
A Unique education loan offered to fund higher studies not only in
Bangladesh but also abroad. customers can get up to 95% of your fixed
deposit value as student loan or up to Tk 10 lacs on fully collateral – free
basis:
Secured overdraft facility –value can be up to 80% of the security

deposit.
Unsecured facility – loan amount up to Tk. 10 Lac
Secured Equal Monthly Installments Facility – loan amount up to

95% of the security deposit
City Double is a unique loan facility where customers fixed deposit in

City Bank or in any other financial institution will now allow them to avail
two loans at the same time from us – one as overdraft (up to 95% of FD
value) and other as an EMI loan (up to Tk. 10 Lacs).
Fully secured loan in the for up to 95% of FD value
Unsecured loan for up to Tk. 10 Lac payable in Equal Monthly

Installments (tenor ranging from 12 to 60 months).
Auto Loan for salaried person, business person & self employed
individuals
Loan up to Tk. 20 Lacs
90% - 100% loan of car value
Any purpose personal loan for salaried executives, business person & self
42
employed individuals
Loan up to Tk. 10 Lacs
12 - 60 months installment option
Interest rate is 19% & Processing Fee of Loan is 2%
City Express Cash is a fully secured and revolving facility for any
legitimate purpose. The security for the loan should be ideally CBL FDR.
Bank would finance against clients CBL FDR or other banks/NBFIs security.
City Express Loan is a fully secured and terminating (EMI Based) loan
facility for any legitimate purpose. Bank would finance against clients CBL
FDR or other bank FDR/NBFIs security.
SME Products of CBL
SME business in Bangladesh mostly requires active financial / banking

support for their business to grow. The City Bank has introduced a
complete tailor made package which surely will meet specific financial
needs and services of their existing & potential customers.
Features
Loan amount ranging from Tk. 500,000 to Tk. 40,00,000
Flexible security arrangement.
Complete business solution.
Considerations of cash transactions besides bank statement.
Quick approval process.
43
To facilitate different concerns engaged in service related industry, The
City Bank has introduced a customized product naming City Sheba. The
product will positively satisfy different business related needs of the
clients involved in different service sectors.
Features
Flexible security arrangement
A unique product to facilitate concerns engaged in manufacturing

business. The product facilitates to meet up diversified needs to
different manufacturing concerns.
Features
Flexible security arrangement
"MUNAFA" is a terminating loan facility (EMI based) for working capital,

fixed asset purchase, or any other business purpose. Bank would finance
against net cash flow of the socio economic entity derived from cash
flow of any creditworthy business and secure the lending against lien of
CBL fixed deposit amounting 50% of loan volume. The product will allow
the bank to capture the existing market opportunity.
44
Women are no more belong for household activities only. Rather their
movement started shifting toward ruling nation, leading corporate office,
developing as business think tank. The state and Bangladesh bank feel
to give a comfortable ground for the development of the women in the
business entity and are encouraging and inviting the financial facilitators
to extend their hands. There are thousands women specially in
handicrafts, boutique, agro based industry, beauty parlor, readymade
garments, creative works, interior design, entertainment market etc
keeping their superb contribution. That's why City Bank introduces City
Nokshi – an exclusive SME financial facility for women entrepreneur.
City Khamar is the loan product to assist the growers who are involved
in fish and poultry production. Fish & poultry industry has become one of
the advance industries in the past decade and many of our growers
shifted their focus from crops to fish & poultry production because of
scarcity of natural fish & meat to meet the high demand. City Khamar
boost this industry in producing more fish & Poultry to meet the demand
of the cultivators.
City Jontropati is aimed to facilitate the farmers to produce different agro

based machinery and equipment for their irrigation and cultivation.
Production of modern cultivation is heavily dependent on availability
facility of equipment and machinery for irrigation and cultivation. This
loan product will help the farmers to buy those equipments for
cultivation process.
Agricultural is the main artery of the nation like Bangladesh. More that
80% of our citizen still depends on agriculture. Agro based products are
no more restricted to just producing paddy. The scope of agriculture has
been spread from crops to livestock, livestock to fisheries, fisheries to
fruit cultivation etc. Till date rice is our staple food and we do have
heavy dependency on potato, vegetable, fish, live stocks, fruits etc. In
absence of adequate production of all these necessities, we need to live
on imported crops and cost of living ultimately goes up and a huge stake
of our population is simply lives very hard life because of crisis of the
necessities. Private sector facilities are invited to take part in the
development of this agro based industry to avoid the deadly sufferings
of crisis and City Bank has come forward to accept the call and
introduced City Shossho to facilitate rural agricultural development.
45
City Livestock is the loan product to assist the persons involve in
farming livestock in different areas in the country. Livestock has a huge
demand in our country for our food, milk and cultivation as well. The raw
hide of the livestock is also highly demanded for the leather industry. As
we can’t meet our domestic demand of milk and meat from our local
sources, we are hugely dependent in import for livestock products. City
Livestock has been aimed to facilitate the people who are involved in
livestock business in the country.
With over 1.5 billion Muslims in the world, the global Islamic funds market
is currently valued at USD 750 billion and is expected to grow
exponentially every year.
Innovative Shariah compliant banking solutions:
The City Bank has dedicated Islamic Banking team combines Shariah
expertise with strong business acumen to offer customers the best of
both worlds - comprehensive international banking services and a wide
range of Shariah compliant financial products based on Islamic values.
They have blended Shariah principles with their rich banking heritage of
more than 150 years to provide banking services that support the
business while respecting customers’ beliefs.
Their diverse range of Islamic Banking products are designed to give the
customers greater flexibility while conducting business through Shariah-
compliant process.
CBL Islamic Products:
Bai Muajjal:
For financing procurement of raw material where goods are kept under
customer’s custody.
Bai Murabaha:
For financing procurement of raw material where goods are kept under
bank’s custody
Hire Purchase under Shirkatul Melk:
For financing procurement of capital machinery
Bai Salam:
For financing pre-shipment expenses by purchasing exportable goods in

advance
COMPETITIVE ANALYSIS ON RETAIL PRODUCTS OF
CBL & UCBL
46
HOME LOAN
CBL UCBL
 Age limit of the loan receiver 23-67  Age limit of the loan receiver 25-65
years (At the end of loan payment) years (At the end of loan payment)
 Minimum 3 year successful experience  2 year successful experience of
of business operation. business operation.
 buy new house or apartment  To buy new house or apartment
 To build new house.  To build new house.
 Residential Land at Government  To build semi brick build or tin shed
approved Housing Projects building
 Opportunity to get maximum  Opportunity to get maximum
100, 00,000/- loan facility 75, 00,000/- loan facility.
 Loan limit is 80% of the value of the new  Loan limit is 80% of the value of the
building or apartment new building or apartment.
 Minimum processing fee.  Minimum processing fee.
 Payable within maximum 25 years  Payable within maximum 20 years.
ADVANTAGES: ADVANTAGES:
 Maximum age limit  Least Business experience
 Utmost Loan Amount  This finance is allowed for semi brick
 to purchase Government build or tin shed building
approved Housing Projects.
 Higher Loan Tenure
DISADVANTAGES: DISADVANTAGES:
 More Business experience  Age limit
 This finance is not allowed for semi brick  Least Loan Amount
build or tin shed building  No facility to purchase Government
approved Housing Projects
CAR LOAN
CBL UCBL
 Age limit of the loan receiver 21-57 years  Age limit of the loan receiver 25-65
(At the end of loan payment) years (At the end of loan payment)
 Minimum 2 year successful experience of  Minimum 2 year successful
business operation. experience of business operation.
 Maximum 20, 00,000/- loan facility for  Maximum 20, 00,000/- loan facility
both new and re-conditioned car. for both new and re-conditioned car.
 limit is 30% of the value of the car  Loan limit is 30% of the value of the
 Minimum processing fee. car
 is payable by easy installment of 12,  Minimum processing fee.
24,36,48,60 or 72(New Car) months.  is payable by easy installment of
12,24,36,48 or 60 months.
Higher Loan Tenure Maximum age limit for customer
47
Maximum age limit lesser then UCBL Inferior Loan Tenure
requirements.
EDUCATION LOAN
CBL UCBL
years (At the end of loan payment) years (At the end of loan payment)
 Minimum 5 years successful experience  Minimum 3 years successful
of Business own organization. experience of Business own
 Minimum 5 years job experience organization.
including at last 3 years job in current  Minimum 2 years job experience
organization. including at last 6 month job in current
 Opportunity to get maximum 3, 00,000/- organization.
loan facility.  Opportunity to get maximum 5,
 Applicable for foreign education 00,000/- loan facility.
 No need of cash security.  Minimum processing fee
 Loan is payable by easy installment  No need of cash security.
within Maximum 48 months.  Loan is payable by easy installment
within Maximum 48 months.
 Applicable for foreign education  Age limit is flexible
 Maximum Loan Tenure  Job experience is also flexible
 Maximum Loan amount
 Maximum Loan Tenure
 Age limit is not flexible Not applicable for foreign education
 Job experience is stiff
 Loan amount
SME LOAN
CBL UCBL
 Age limit of the loan receiver 21-57 years  Age limit of the loan receiver 25-65
(At the end of loan payment) years (At the end of loan payment)
 Minimum 2 years Working or Business  Minimum 3 years successful
experience experience of business operation.
48
 Opportunity to get maximum 3,00,000/-  Opportunity to get maximum
loan facility  10, 00,000/- loan facility
 Minimum processing fee  Minimum processing fee.
 No need of cash security. Only personal  No need of cash security.
guarantee of two persons with all  Only personal guarantee of two
necessary proofs. persons with all necessary proofs.
 Loan is payable by easy installment 12,24  Loan is payable by easy
or 36 months. installment 12, 24, 36, 48 months.
 Least Business experience  Minimum processing fee.
 Minimum processing fee.  Maximum age limit
 Maximum Loan amount
 Maximum Tenure
 Least loan amount More business experience
 Inflexible tenure
DOCTORS LOAN
CBL UCBL
years (At the end of loan payment) years (At the end of loan payment).
 Minimum 5 years successful  Minimum 2 years successful
experience of operation own experience of operation own
organization. organization.
 Opportunity to get maximum  Opportunity to get maximum
50,00,000/- loan facility 10,00,000/- loan facility.
 Loan limits is 90% of the value of the  Loan limits is 90% of the value of the
medical installment medical installment.
 Minimum processing fee  Minimum processing fee.
 A maximum of Tk.50 lacs can be  No need of cash security.
availed at a time and in a cumulated  Only personal guarantee of two
amount by an individual doctor either persons with all necessary proofs.
in a single  Loan is payable by easy installment
 Loan is payable by easy installment 12, 12, 24,36,48,60 months...
24,36,48,60 months.
Maximum loan amount  Least Business experience
49
 Flexible age limit
More Business experience (Minimum age 30) Least Loan Amount
CREDIT CARD
CBL UCBL
 Age limit of the loan receiver 21-60 years.  Age limit of the loan receiver 21-60
Minimum 1 years successful experience of years.
operation own organization. Minimum 1 years successful
 Minimum 1 year’s job experience including experience of operation own
at last 6 month job in current organization. organization.
 Card holder may enjoy up to 45 days of  Minimum 1 year’s job experience
interest free credit including at last 6 month job in
 Minimum annual fee that have a steady job current organization.
or income that pays you at least Tk.10, 000  Card holder may enjoy up to 45 days
monthly (gross), can apply for a CBL of interest free credit
MasterCard.  Minimum annual fee that have a
 CBL provides exclusive Master Card for steady job or income that pays you at
ladies least Tk.15 000 monthly (gross), can
 Facility to draw cash up to the extent of apply for a UCBL Visa Card.
50% of credit limit  UCBL also provides exclusive Visa
Card for ladies
 Facility to draw cash up to the extent
of 100% of credit limit
 Additionally, two supplementary / add-on  Truly global - Locally &
cards may be issued. internationally transactable with the
 Minimum age limit same card.
 Minimum annual fee  This is a dual product.
 One bank provides exclusive Master Card  Latest & best quality product at
for ladies lowest price (annual fee) in the
market.
 Reward point for spending leads to
wining of attractive prizes.
 Choice of colors in Classic (Silver)
products.
 Credit Card for ladies - first time in
DISADVANTAGES: Bangladesh.
 Locally acceptance only
 No reward point DISADVANTAGES:
 No facility to draw by cheque  Minimum income requirements is
higher than other
 Customer statement does not show
the at actual payment date.
CONCLUSION:
50
Even though from the above analysis it is observed that both of the banks
are offering almost same line of products, first comparison could be the
base of business. When CBL is focusing on small and retail business, UCB is
not only focusing on small and retail business but also focused on
corporate. At the same time, UCB has more diversified retail products
including credit cards than that of CBL. Secondly, UCB is going ahead in
leading position than CBL. On the other hand, UCB has a very good holding
on corporate arena with its well-built continuous and non funded loans
where CBL is far behind.
Moreover, UCB has a long banking experience than CBL. Now, UCB is not a
name of Bank only it is a name of Brand for the clients, stakeholders and
shareholders. It has occupied the heart of loyal customer. We can feel proud
for our UCB.
51

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A competitive Study Report

Mohammad Hanif Chowdhury

Date of Submission: November

Name of Topics Pages

The sectors have been categorized in accordance with their degree of

The informal sector includes private intermediaries which are completely

After the independence, banking industry in Bangladesh started its journey

 Non-Scheduled Banks: The banks which are established for special

There are 47 scheduled banks in Bangladesh who operate under full

There are now 4 non-scheduled banks in Bangladesh which are:

 Ansar VDP Unnayan Bank,

United Commercial Bank (UCB) is a Bangladesh based financial institution

United Commercial Bank Limited incorporated on 26 June, 1983 as a public

Corporate Information of UCBL:

Registered Name United Commercial Bank Limited

Registered Head Office Bulus Center

Chairman Mr. Alhaj Akhtaruzzaman Chowdhury,

Managing Director Mr. M. Shahidul Islam

Number of Branches 125

Product/Service Offering by UCB

 UCB Multi Millionaire  Import Finance

To be the bank of first choice through maximizing value of our clients,

UCBL believes in the practice of Market-Oriented Strategic Planning,

The strategic planning of UCBL consists of two organizational levels, which

 Dhaka Division, comprising 56 branches.

Business Level Strategy of UCBL:

UCBL performing following functions:

 Human Resources Management Division

Credit/Asset Products Offered by UCB

Corporate Retail Products SME Products

 Working capital  Home Loan UCB- Disha

Fixed term loans:

Short term : Upto 12 months

Furthermore all categories of loans are accommodated under the 7 prime

a) Loans to primary producers: This sub-sector of agricultural financing

Loans to processors or traders of agricultural products are not to be

Term Loan to Large & Medium Scale Industry:

This category of advances accommodate the medium and long term

Term Loans to Small & Cottage Industries:

Loans allowed to the manufacturing units to meet their working capital

Credit facilities allowed to facilitate export of all items against Letter of

Types of Credit Facilities:

Seria Name of the Description Purpose Tenor

5. PAD (A/G/B) Payment against Advance against 21 days

7. PC Packing Credit against To finance 120 days

9. BFL Bridge Financing Loan Support Equity 12-36

10. TRL Transport Loan To finance 36-48

Seria Name of the Description Purpose Tenor

12. HBL(Res) House Building Loan - To finance 60-120

13. LTR Loan against Trust To finance import 180 days

14. HBL(S) House Building Loan – To finance 15 years

15. CC(Hypo) Cash Credit against To finance 12 months

17. Loan General Loan General (w.c) Short term, 12-36

18. FBPD Foreign Bill Purchased & To purchase As per LC

19. LBPD Local Bill Purchased & To purchase As per LC

20. LPCS(S) Loan under Personal To finance 36 months

21. CL(S) Car Loan – Staff To finance 5 years

22. FL(S) Furniture Loan – Staff To finance 72 months

23. LIM Loan against Imported To finance 180 days

Seria Name of the Description Purpose Tenor

28. CP(Local) Cheque Purchase (Local) To 30 days

30. Consumer Credit Consumer credit To finance Over 12

31. Hire Purchase Hire purchase To finance capital Over 12

Seria Name of the Description Purpose Tenor