CHAPTER: 01

1
 Project Part

1.0 Introduction (Project Part):

Banks are very old form of financial institution that channel excess funds from surplus unit to
deficit unit in consideration of a price called Interest. Banking business definitely established on
a relationship of Debtor-Creditor between the surplus unit called depositors and the bank and
between the deficit unit called borrowers and the bank. Economic development of a country
enquires a well organized, smooth, easy to reach and efficient saving-investment process. The
banking sector of Bangladesh compared to its economic size is moderately bigger than many
other economies of equal level of development and per capita income. There are forty-seven
commercial banks operating in this small economy. Although over the last thirty years, the
country achieved noticeable success regarding the access to banking services, in 1972 population
per branch was 57,700 and in the year of 2016, it was 20,162 per branch. The statistics indicates
that getting banking services is not a significant problem for the country. Being the central bank
of the country, Bangladesh Bank is responsible to regulate, monitor and supervise all the banks
operating in the country. This particular report provides an overview of trade finance mechanism
and reporting system in Bangladesh in context of Uttara Bank Ltd. So here I have worked on the
trade finance mechanism and the overall activities on General Banking Department of Uttara
Bank Limited.

1.1 Origin of the Report:

As a prerequisite for the Bachelor of Business Administration Degree of Metropolitan
University, I was required to complete Internship in a suitable researching area and submit a
report on findings. I have chosen Uttara Bank’s overall activities on General Banking
Department’s activities to explore my knowledge in this financial area. Without practical
exposure, theory can never be fruitful. For this reason, BBA program has been designed in such
a way that a student can get practical knowledge. I’m instructed to prepare the report under the
consul of my respective project instructor ……………… and the last date of submission 30th July
2017.

1.2 Background of the Study:

All over the world the dimension of Banking has been changing rapidly due to Deregulation,
Technological innovation and Globalization. Banking in Bangladesh has keep pace with the
global change. Now Banks must compete in the market place both with local institution as well
as foreign ounces. To survive and thrive in such a competitive banking world, two important
requirements are Development of appropriate financial infrastructure by the central Bank and
Development of “professionalism” in the sense of developing an appropriate manpower structure
and its expertise and experience. To introduce skilled Banker, only theoretical knowledge in the
field of banking studies is not sufficient. An academic course of the study has a great value when

2
it has practical application in real life situation. So, I need proper application of my knowledge to
get some benefit from my theoretical knowledge make it more tactful. When I engage myself in
such fields to make proper use of my theoretical knowledge in my practical life situation. Such
theoretical knowledge is obtained from a course of study at only the half way of the subject
matter. Internship implies on other the full application of the methods and procedures implies on
the other full application of the methods and procedures through rich acquire of subject matter
can be forcefully applied in my day-to-day life situation. Such a procedure of practical
application is known as Internship.

1.3 Objective of the Report:

The objective of the report is to have a real live exposure in the banking Sector. It will help to
develop my knowledge in sector. This practical Orientation gives me a change for the Co-
ordination of theoretical knowledge with the practical experience. The following are of
objectives for this practical orientation in bank.
 To find out the position of Uttara Bank Limited in the banking industry and also find out
how its present strategy is working.
 To analyze the comparative performance of Uttara Bank Limited and some other selected
private commercial banks.
 To know the successive position of each bank. To analyze the bank’s performance in
some key areas.
 To find out existing problems of the bank. To formulate alternative strategies for solving
the problems.
 To recommend some better solutions for solving the problems.
 To formulate an implementation plan for the recommended steps.
 To formulate contingency plan as a safeguard for changing.

1.4 Methodology of the Report:

This report is investigative in nature. The study has been performed based on the information
extracted from different sources and organized by using a specific methodology.

1.5 Significance of the Study:

Historically Bangladeshi bank is huge number of loan. As a result the burden of bad debt has a negative
impact of their profitability as well as their new Investment. May Financial Institutions are trying to avoid
giving long-term loan to the Industries, especially in new industries.

In this situation the concept of Syndicate Financing is new concept in Bangladesh. After
successful completion of this study, it can be used to identify the performance of UBL and also
invent new technique, which can be used to prevent a good loan to be a classified loan and these
technique can also be used in other banks to get the same benefit.

3
1.6 Research Methodology:

Research Design

Both descriptive and exploratory researches have been selected to analyze this paper. Here the researcher
discussed the credit appraisal procedure of UBL and critically analyze the appraisal procedure with the
standard one. Comparison analysis has also been taken part in this study.

1.7 Data Collection Procedures:

There are two main sources of collecting data. To complete this report data has been collected from both
primary and secondary sources. The primary data has been gathered by formal discussion with the credit
officials and borrowers. Some secondary data has also been collected to make the report more concrete.
These data has been collected from different financial statements, annual

1.8 Limitation of the Study:

To prepare this report, I have faced some limitations, which are mentioned below.

 Limitation of time:
It was one of the main constraints that hindered to cover all Aspects of the study.

 Lack of Secondary:
The annual brochure was the main secondary sources of information that was not enough to
complete the report and private the reader a clear idea about the bank.

 Limitation of the Scope:

While collecting data, they did not disclose much information due to the confidentially of the
organization.

1.8 Scope of the Report:

While preparing this report I had an opportunity to gain deep knowledge about the banking
mechanism, especially in the foreign exchange department. I have also come through many
different personalities, who shared their experiences, while conducting the research on Trade
Finance reporting system. The report has also given the readers the opportunity to learn about the
foreign exchange and other banking mechanism, the related regulations, and the obligations for
monitoring. The research that this report has covered would give the central bank the necessary
feedback information regarding their new online trade finance reporting system, which would
help them figure out the problems of the new system for further upgrading. The commercial
banks can also gain from the information by learning about their officials’ troubles regarding
their porting system so that they can come up with a solution to help their employees be more
comfortable and more efficient by making their work easier.

4
CHAPTER- 02

5
 Overview of the Organization

2.1Introduction of Uttara Bank Limited:

Uttara Bank Limited is one of the oldest and largest commercial banks in private sector in
Bangladesh. It provides mass banking services to the customers through its branch network all
over the country. This bank has been playing a vital role in socio-economic, industrial and
agricultural development as well as in the overall economic development of the country since its
inception through savings mobilization and invests of funds.

The prosperity of a country depends on its economic activities. Like any other sphere of modern
socio economic activities, banking is a powerful medium of bringing about socio economic
changes of a developing country. Without adequate banking facility agriculture, commerce and
industry cannot flourish. A suitable developed banking system can provide the necessary boost
for the economic growth of the country. Because banking system is linked with the whole
country.

Uttara bank limited, a private commercial bank, offers a range of mass banking services and
products in Bangladesh. Its deposit products include savings bank accounts, fixed deposit
accounts, short term deposit accounts, current accounts, pension accounts and foreign currency
accounts. The bank’s loan and lease service comprise micro credit, small and medium enterprise
financing, industrial loans, working capital financing, export credit, import credit, bills purchase,
letter of credit, letter of guarantee, lease financing, transport financing, consumers loan schemes
and house building loans. It also offers various remittance services, including remittance of fund
from abroad by Bangladesh.

6
2.2 Uttara Bank Limited at a Glance:

Name Company Profile

Name of the Organization
UTTARA BANK LIMITED

Year of Establishment 1964 Eastern Banking Corporation then After

1971 Uttara Bank Limited

Authorized Capital Tk. 4200.00 million

Paid up Capital
Tk. 1897.00 million

Face Value Per Share Tk. 100

No. of Directors 13
Number of Branches 207
Managing Director Shamsuddin Ahmed

Contact Address Uttara Bank Limited

90, Motijheel Commercial Area
Dhaka 1000, Bangladesh
GPO Box: 217 & 818

Phone (880-2) 9551162

Fax: (880-2) 7168376
SWIFT: UTBLBDDH

E-mail uttara@citecho.net,
Web http://www.uttarabank-bd.com
Cable Bankers

7
2.3 History of Uttara Bank Limited:
Uttara Bank Limited celebrated 50th anniversary of its Banking Service in 2015. This well
established and ancient bank has a rich history. With the initiation of some renown bengali
businessmen it was established to facilitate the disadvantaged people of the then East Pakistan
and started its banking operation officially on 28th January of 1965 in name of “Eastern Banking
Corporation” with four branches which soon reached 60 just before the independence. During
Non-cooperation movement in 1971, this bank performed the treasury function of East Bengal.

After independence, Eastern Banking Corporation was nationalized and renamed as “Uttara
Bank” and resumed its banking operation from 26th March 1972. Embarking on a progressive
journey, Uttara Bank continued to grow and expand in the successive years. It took the name
“Uttara Bank Ltd.” after privatization from June,1983 and became one of the largest private
sector bank of Bangladesh. In the later years, Uttara Bank became the trend setter in the banking
industry, acquiring lion's share in inward foreign remittances and a major market share in loans
to large, medium and small industries, traders and farmers. Based on the bank’s consistent strong
financial performance and its expanding presence, Uttara Bank Ltd. is currently ranked as the
most trusted bank in Bangladesh.

At present the bank has 229 branches and all are under online network. In addition, its effective
and diversified approach to seize the market opportunities is going on as continuous process to
accommodate new customers by developing and expanding rural, SME financing and offshore
banking facilities. Besides these traditional delivery points, the bank is also very active in the
alternative delivery area. It currently has the facilities of SMS Banking, Internet Banking and a
large number of ATMs of its own with ATM sharing arrangement with other partner banks.

The Bank is proud of its management team headed by Managing Director, & Chief Executive
Officer Mr. Mohammed Rabiul Hossain and it encourages all employees to devote a measure
of their time and talent to support distressed community by participating in CSR programs. Its
main objective is to render service to the people whether rich or poor and to contribute to the
development of the nation.

8
2.4 Vision and Mission:
“A Bank with a Difference” is the motto of Uttara Limited. So the motto itself is self-
explanatory to deliver the vision of the bank. Uttara Bank limited is prepared to meet the
challenge of the 21st century well ahead of time. To cope with the challenge of the new
millennium it hired experienced and well-reputed banker of the country from the inception.
The bank has efficient and dedicated professionals and equipped with modern technology to
provide the best service in the need of the people and thus to realize its vision.

 Vision

 To be the best Private Commercial Bank in Bangladesh in terms of Efficiency,

capital adequacy, asset quality, sound management and profitability having
strong liquidity.

 Mission

 To build Uttara Bank Limited into an efficient, market-driven, customer

focused institution with good corporate governance structure.
 Continuous improvement of our business policies, procedure and
efficiency through integration of technology at all levels.

 Focus of Efforts

 On delivery of quality service in all areas of banking activities with the

aim to add increased value to shareholders’ investment and offer highest
possible benefits to our customers

 Strategic Priorities

 To have sustained growth, broaden and improve range of products and

Services.

9
2.5 Product and Service:
1. Retail Banking

2. Corporate Banking

3. Student File Service

4. Investment Facilities
Though Bonds
5. Trade Service

6. Off shore Banking

2.6 Objective of the Bank:

The objective of the Uttara Bank Limited is specific and targeted to its vision and to position
itself in the mindset of the people as ‘a bank with difference’. The objectives of the Uttara
Bank Limited are as follows:

 To mobilize the savings and channeling it out as loan or advance as the company
approve.
 To establish, maintain, carry on, transact and undertake all kinds of investment and
financial business including underwriting, managing and distributing the issue of
stocks, debentures, and other securities.
 To finance the international trade both in import and export.
 To carry on the foreign exchange business, including buying and selling of foreign
currency, traveler’s cheques issuing, international credit card issuance etc.
 To develop the standard of living of the limited income group by providing Consumer
Credit.
 To finance the industry, trade and commerce in both the conventional way and by
offering customer friendly credit service.
 To encourage the new entrepreneurs for investment and thus to develop the country’s
industry sector and contribute to the economic development.

10
2.5.Management of the Bank:
Boards of directors are the sole authority to take decision about the affairs of the business.
Now there are 13 directors in the management of the bank. All the directors have good
academic background and have huge experience in business. Captain Imam Anwar Hossain is
the chairman of the bank. The board of directors holds meetings on a regular basis.

 Executive Committee: The Executive Committee consists of the members of the

Board of Directors. This committee exercises the power as delegated by the Board from
time to time and approves all matters beyond the delegation of Management.

 Management Committee: The Management Committee consists of the Managing

Directors and Head Office Executives. They discuss about the progress on portfolio
functions. Different ideas and decisions, guidelines regarding deposits, lending and
management of Human and Material resources are the main concern of this committee.

All these committees meet on a regular basis for discussing various issues and proposals
submitted for decisions.
2.7 Functional Strucure of Uttara Bank Ltd: Uttara Bank Ltd. has the following
functional departments in its head office.

Managing Director

Managing Director and Chief Executive Officer

Executive Vice president

Senior Vice President

Vice President

Senior Assistant Vice

Assistant Vice president

First Assistant Vice

Senior Executive Officer

Executive Officer

Principal Officer

Senior Officer

Management Trainee

11
2.8 Logistic & Support Services Division (L&SSD:)
This Division was formerly known as General Services Division (GSD). Their main function
relates to procurements and supply of all tangible goods and services to the Branches as well
as Head office of Uttara BankLimited. This includes

a) Every tangible functions of Branch opening such as making lease agreement,

interior decoration etc.
b) Print all security papers and Bank Stationeries.
c) Distribution of these stationeries to the branch
d) Purchase and distribute all kinds of bank’s furniture and fixtures.
e) Receives demand of cars, vehicles, telephones etc from branched and different
f) divisions in head office and arrange, purchase and delivery of it to the
concerned person Branch.
g) Install & maintain different facilities in the Branches.

2.9 Financial Administration Division (FAD):

Financials Administration Division mainly deals with the account side of the Bank. It deals
with all the Head Office transactions with bank and its Branches and all there are controlled
under the following heads:

a) Income, Expenditure Posting: All income and expenditures are maintained and posted
under these heads.
b) Cash Section: cash section generally handles cash expenditure for office operations
and miscellaneous payments.
c) Bills sections: this section is responsible for inland bills only.
d) Salary & Wages of the Employee: Salary and wages of the Head Office executives,
officers 7 employees are given in this department.
e) Maintenance of Employee Provident Fund: Employee provident fund accounts are
maintained here.

2.10 Consolidation of Branch’s Accounts:

All branches periodically (especially monthly) sends their income and expenditure i.e. profit
and loss accounts and Head Office made the consolidation statement of income and
expenditure of the bank. Here branch Statements are reviewed. This division also prepares
different monthly, quarterly, half-yearly statements and submits to Bangladesh bank. It also
analyzes and interprets financial statements for the management and Board of director.

2.11 Credit Division:

The main function of this division is to maintain the Bank’s credit portfolio. A well reputed
and hard working group of executives & officers runs the functions of this division. Other
major functions are the following:

12
 a. Receives proposals
b. Proposes and appraises.
c. Get approval
d. Communication and Sanction
e. Monitoring and follow-up.
f. Set price for credit and ensure effectiveness of it.
g. Prepare various statements for onward submission to Bangladesh bank.

2.12 International Division

The objective of this division is to assist management to make international dealing decisions
and after decision is made, guide Branches in their implementation. Its functional areas are as
follows:

a) Maintaining correspondence relationship.

b) Monitoring foreign exchange rate and exchange dealings.
c) Maintaining Nostro A/Cs and reconciliation.
d) Authorizing of signing and test key.
e) Monitoring foreign exchange returns & statements.
f) Sending updated exchange rates to concern branches.

2.13 Computer Division:

Uttara Bankoperates and keeps records of its assets and liabilities in computers by using
integrated software to maintain client Ledger and general Ledger. The main function of this
division is to provide required Hardware and Software. The functions of this division are:

a) Designing software to support the accounting operation.

b) Updating Software, if there is any lagging.
c) Improvisation of software to get best possible output from them.
d) Hardware and Software troubleshooting.
e) Maintain Connectivity in through LAN, Intranet & Internet.
f) Provide updated CD’s of Online Accounts to the Branches
g) Routine Checkup of Computers of Different Branches.

2.14 Public Relations Division:

It has to perform certain functions related to all types of communication. The broad routine
functions can be enumerated as follows:

a) Receiving and Sanctioning of all advertisement application

b) Keeping good relation with different newspaper offices
c) Inviting concern ones for any occasion.
d) Keeping good relation with different officers of electronic media.

13
2.15 Marketing Division:
Marketing Division is involved in two types of marketing .They are-

1. Asset marketing: Marketing of assets refers to marketing of various kinds of loans and
advances. In-order to perform this job, they often visits dome large organizations and attract
then to borrow from the Bank to finance profitable ventures.

2. Liability Marketing: The process of Liability marketing is more of less same as Asset
marketing. In this case different organizations having excess funds are solicited to deposit
their excess fund to the Bank. If the amount of money to be deposited is large, the Banks
sometimes offer a bit higher price than the prevailing market rate.

2.16 Human Resources Division:

HRD performs all kind of administrative and personnel related matters. The broad functions
of the division are as follows:

a) Selecting & Recruitment of new Personnel.

b) Prepare all formalities regarding appointment and joining of the successful
candidates.
c) Placement of Manpower.
d) Deal with the transfer, promotion and leave of the employees.
e) Training & Development.
f) Termination and retrenchment of the employees.
g) Keeping records and personal file of every employee of the Bank.
h) Employee welfare fund running.
i) Arranges workshops & trainings for employee & executives.

2.17 Inspection & Audit Division:

Inspection and Audit division works as internal audit division of the Company. The officers
of this division randomly go to different Branches examine the necessary documents
regarding each single account. If there is any discrepancy, they inform the authority
concerned to take care of that/those discrepancies. They help the bank to comply with the
rules and regulation imposed by the Bangladesh Bank. They inform the Bangladesh Bank
about the Current position of the rules and regulation followed by the Bank.

2.18 Credit Card Division:

Uttara Bankobtained the principal membership of Master Card International in the month of
May, 1999. A separate Division is assigned to look after this card. The Marketing Team of
this division goes to the potential customers to sell the card.

14
  Currently Uttara Bank Ltd. offers four types of card:
1. Local Silver Card.
2. International Silver Card
3. Local Gold Card
4. International Gold Card

Recently Uttara Bank has obtained the membership of VISA credit Card and soon they will
start marketing of it.

2.19 Merchant Banking and Investment Division:

This division concentrates its operation in the area of under writing of initial public offer
(IPO) and advance against shares. This division deals with the shares of the Company. They
also look after the security Portfolio owned by the Bank. The Bank has a large amount of
investment in shares and securities of different corporations as well as government treasury
bills and prize bond.

Management will have to keep close coordination with other banks as well as the Bangladesh
Bank to find out how to solve the problems related to Documentary Credit operations.
Coordination with Bangladesh Bank is an absolute necessity as Documentary Credit related
activities of all Authorized Dealer (AD) branches of all commercial banks are strictly
regulated by Bangladesh Bank. Still banks have little to do to tackle the problems caused by
the external factors. But banks can do something to minimize the problems caused by the
internal factors. Necessary measures include automation, establishing remittance-drawing
arrangements with foreign exchange houses and banks, regular performance appraisal and
promotions depending on that will minimize mistakes by the employees to a great extent.

15
CHAPTER: 3

16
 Study of the Work at Uttara Bank Ltd

at Prime Bank
3.1 General Banking:

Financial institution/ intermediary that mediates or stands between ultimate borrowers and
ultimate lenders is knows as banking financial institution. Banks perform this function in two
ways- taking deposits from various areas in different forms and lending that accumulated
amount of money to the potential investors in other different forms.

General Banking is the starting point of all the banking operating. General Banking
department aids in taking deposits and simultaneously provides some ancillaries services. It
provides those customers who come frequently and those customers who come one time in
banking for enjoying ancillary services. In some general banking activities, there is no
relation between banker and customers who will take only one service form the bank. On the
other hand, there are some customers with who bank are doing its business frequently. It is
the department, which provides day-to-day services to the customers. Every day it receives
deposits from the customers and meets their demand for cash by honoring cheques. It opens
new accounts, demit funds, issue bank drafts and pay orders etc. since bank in confined to
provide the service everyday general banking is also known as retail banking.

3.2 General Banking consists of the many sections in the branch. These are:

 Customer Service
 Account Opening/Closing
 Payment Order Issue
 Demand Draft Issue/Collection

3.3 T.T. Issue/Collection:

 Account Transfer
 IBC/OBC Collection
 Deposit Department
 Clearing Department
 Cash Department etc.

3.4 General Features of General Banking:

 Issuance of token, Maintenance of subsidiary day Book, writing of day Book,

balancing of Ledger.
 Opening of A/C like – Savings A/C, Current A/C, Short Term Deposit A/C, writing of
A/C opening registers and issuance of pass book and cheque Book etc.
 Maintenance of current A/C ledgers, deposit ledger and FDR ledger and operation.
 Writing of transfer scroll, statement of current A/C and deposit A/C.
 Bills: Outward & inward Bills (OBC & IBC) and clearing.
 Remittance: Issuance and payment of DD, TT, PO etc.
 Writing of clean cash Book and posting of General Ledger.
 Maintenance of charges, suspense and sundry deposit A/C, maintenance of dead stock
and stationery articles registers.
 Schedule Telegram and preparation of General ledger A/C statement.

17
3.5 Customer Service:

Customer service includes provide information to all type of customer queries. Each day
many people come to the branch with various types of problems. Some of information is like
Account opening requirements, DPS related information, FDR information, Give instruction
for address change, signature change, nominee change, and account closing information, DPS
closing information, FDR closing formalities, pay order, document issue and all type of
queries.

3.4 Account Opening:

It is said that there is no banker customer relationship, if there is no account of a person in

that bank. By opening an account banker and customer create a contractual relationship.
However, selection of customer for opening an account is very crucial for a bank.

3.5 Account Opening Procedures in a Flow Chart

 She is required to fill up the specimen signature card.

 An applicant fills up the relevant application form in the prescribed manner.
 For individual introduction is needed by an account holder.
 The authorization officer scrutinized the introduction and examines the documents
submitted
 Account is opened
 Issuance of deposit slip and the deposit must be made in cash. No cheque or draft is
acceptable to the bank.
 After depositing the cash one cheque book &a pay in slip book is issued for the
application.

3.6 Before opening of a current or savings account, the following formalities must be
completed:

Application on the prescribed form.The customer information must be filled up with the
form. Introduction: The following persons can introduce an account opener;

 An existing current/savings account holder of that branch.

 An offer of that branch (not below of the rank of an Assistant officer).
 A responsible person of the society or locality who is well known to the Manager/2 nd man of
the branch concerned.

3.7 Furnishing photographs:

Banker will supply a set of printed forms required for opening the account which will
normally include:

 Specimen Signature cards (SSC).

 Deposit Slip Book.
 Check Book Requisition Slips.

18
3.8 Papers and Documents Required for Account Opening:

 Savings Bank Account (SB)

 Passport size photograph – two copies.

 Introducer’s signature in the account opening card and photograph.
 Nationality Certificate/Passport’s photography (duly attested)
 Nominee’s photograph.
 Mother’s name.
 Date of Birth and Age.

3.9 Current Deposit (CD)

 Individual Account

 Passport size photograph – two copies.

 Introducer’s signature in the account opening card and photograph.
 Nationality Certificate/Passport’s photography (duly attested)
 Nominee’s photograph.
 Mother’s name.
 Date of Birth and Age.
 TIN papers.

 Proprietorship Account

 Passport size photograph – two copies.

 Introducer’s signature in the account opening card and photograph.
 Nationality Certificate/Passport’s photography (duly attested)
 Nominee’s photograph.
 Mother’s name.
 Date of Birth and Age.
 TIN papers –

 Trade License (valid)

 Seal/Rubber Stamp.

 Partnership account

 Passport size photograph of account operator (Authorize by parents) – two copies

(each).
 Introducer’s signature in the account opening card and photograph.
 Nationality Certificate/Passport’s photography (duly attested)
 Parent’s name.
 Date of Birth and Age.
 TIN papers
 Partnership Letter.
 Trade License (valid).
 Partnership deed (from Notary Public).
 Seal/Rubber Stamp.

19
  Account for Limited Company

 Passport size photograph of account operator (Authorize by parents) – two copies

(each).
 Introducer’s signature in the account opening card and photograph.
 Company resolution.
 Common seal of the company.
 Memorandum & Articles of association (certified by Joint Stock Company).
 List of Directors with sign.
 Certificate of incorporation.
 Trade License (valid).
 TIN papers.

 Account for Societies, Clubs, etc.

 Passport size photograph of account operator (Authorize by parents) – two copies

(each).
 Introducer’s signature in the account opening card and photograph.
 Nationality certificate of the operators.
 Bye-laws & Regulations/constitution.
 Board Resolution.
 Up-to- date list of office Bearers/Governing Body/Managing Committee.
 Memorandum & Articles of association (certified by Joint Stock Company).
 Seal/Rubber Stamp

3.10 Deposit Schemes (Local Currency):

 Savings Account
 FDR Account
 STD Account

3.11 Savings Account:

Any Bangladeshi National residing home or abroad may open savings account with UBL.
This account may be opened in single/joint name. The account holder may nominate his
nominee in this account. The nominee can get the balance amount without submitting
succession certificate after the death of account holder. This account bears usual rate of
interest. UBL offers 1% above the normal rate of interest on credit balance of TK.2.00 lac
and above kept in the savings account for more than 6 month.

3.12 Requirement for opening of the A/C:

 Account opening form as per format below. The Account opening form and signature
card to be filled in and duly signed.
 Two copies passport size photographs of the account holder.
 Photograph of nominee (if any) duly attested by the account holder.
 Photocopy of the 1st 7 pages of the passport for non-resident Bangladeshi national.
 Signature in the account opening form/card must be same with the signature of the
passport.

20
3.13 Accounting Entries of Clearing Department:
The following entries are given if the cheques are honored,
Customer A/C ________________________Debit
UBL General A/C _________________________Credit
UBL Principal Branch clears its cheques through the Head Office as well as the cheques of
other branches, because it is only permitted. The other branches send the instruments through
I.B.D.A UBL Principal Branch acts as an agent in this case. For this concern branch gives the
following entries,
UBL General A/C __________________Debit
Customers A/C __________________________Credit
If the instrument is dishonored, the instrument is returned to the concerned branch through
I.B.D.A. along with the following entries, Incase of return(For Inward instrument)
UBL General A/C ____________________ Debit
Customers A/C _______________________________Credit.
In case of return (For Outward instrument)
Customer A/C _________________________Debit
UBL General A/C ___________________________Credit.
In case of returning an instrument the respective officer usually looks for following reasons,
 Account closed
 Insufficient fund
 Not arranged for
 Payment stopped
 Refer to drawer
 Effects not cleared may be presented again
 Amount in words and figures differs
 Drawer’s signature differs
 Alteration require drawer’s full signature
 Mutilation requires drawers confirmation
 Cheque post dated out of date
 Date incomplete/missing
 Payee’s endorsement require/ irregular
 Payee’s endorsement requires bank confirmation
 Clearing house stamp missing
 Not drawn on UBL
 Present through banker.
If the check is dishonored due to insufficiency of funds, UBL charges TK. 50/- as penalty.
21
3.14 FDR Account:

Any Bangladeshi national residing home or abroad may open FDR with UBL. FDR may be
opened single/joint name for a period of 3, 6, 12, 24 and 36 months. UBL offers
attractive/competitive rate of interest in FDR.

3.15 Renewal of FDR:

The FDR becomes automatically renewed for like periods and amounts, unless this are
withdrawn by the depositor or the bank notifies the depositor in writhing at least 15 days in
advance of the original or any renewed maturity date of its desire to terminate the account or
cheque any term and condition of the account.

3.16 Short-Term Deposit (STD) Account:

In UBL, limited companies, corporate groups, various other big companies, organizations,
Govt. Departments keep money in STD accounts. Frequent withdrawal is discouraged and
requires 7 (Seven) days prior notice. STD account opening procedure is similar to that of the
saving account. Initial account opening minimum amount requirement TK. 1000/-

In Short Term Deposit Account, the deposit should be kept for at least 7 (seven) days to get
interest. The interest offer for STD is less then that of savings deposit. 6% interest is paid on
their deposit. The bank is benefited because they have to pay less interest and the customers
are also benefited because they any time can divert money.

In UBL, usually customers give an instruction to the bank that their current account will be
debited whenever its deposited amount crosses a certain limit and this amount will be
transferred to the STD account.

3.17 Issuing cheque book to the customer

 Enter the new cheque book number in the register book against the specific
customer’s name.
 Requisition slip filled properly along with the cheque book number.
 Banker issues new cheque book if everything is in the right.
 Banker verifies the slip.

Procedure of issuance of a fresh cheque book

 A customer who opened a new account initially deposits minimum required money in
the account.
 The account opening form is sent for issuance of a cheque book.
 Respected officer first draws a cheque book.
 Officer then sealed it with branch name.
 In-charge officer enters the number of the cheque book in Cherub Book Register.
 Officer also entry the customer’s name and the account number in the same Register.
 Account number is then writing down on the face of the cheque book and on every
page of the cheque book including Requisition slip.

22
  The officer who has the signing authority signs on every page of the cheque book and
the next requisition slip exists in the chequebook.
 The name of the customer is also written down on the face of the cheque book and
Requisition Slip.
 The word ‘issued on’ along with the date of issuance is written down on the
requisition slip.
 Number of cheque book and date of issuance is also written on the application form.
 Next the customer is asked to sign in the cheque book issue register.
 Then the respected officer signs on the face of the requisition slip put his initial in the
register and handover the cheque to the customer.

3.18 Issue of new Cheque book (For old Account)

All the procedure for issuing a new cheque book for old account is same as the procedure of
new account. Only difference is those accounts have to submit the requisition slip of the old
cheque book with date, signature and his/her address. Computer posting is then given to the
requisition slip to know the position of account and to know how may leaves still not used.
The number of new cheque book is entered on the back of the old requisition slip and is
signed by officer.

3.19 Transfer of an Account

 The customer submits an application mentioning the name of branch to which he

wants the account to be transferred.
 His signature card, advice of new account and all relevant documents are sent to that
branch through registered post.
 The balance standing at credit in customer’s account is sent to the other branch
through Inter Branch Credit Advice (IBAC).
 Not exchange should be charged on such transfer.
 Attention is also given in this connection.

3.20 Closing of an Account

Upon the request of a customer, an account can be closed. After receiving an application
from the customer to close an account, some procedures are followed by a banker. The
customer should be asked to draw the final cheque for the amount standing to the credit of his
account less the amount of closing and other incidental chargers and surrender the unused
cheque leaves. The account should be debited for the account closing charges etc. and an
authorized officer of the bank should destroy unused cheque leaves. In case of joint account
the application for closing the account should be signed by all joint holders.

A banker can also close the account of his customer or stop the account under following
considerable circumstances:

 Death of the customer.

 Customer’s insanity and insolvency.
 Order of the court.

23
3.21 Cash Section:

The cash section with all types of negotiable instruments, cash and other instruments and
treated as a sensitive section of the bank. It includes the vault, which is used as the store of
case instruments. If the cash stock goes beyond this limit the excess cash is then transferred
to Bangladesh Bank. Keys to the room are kept under control of cash officer and branch in
charge. The amount of opening cash balance is entered into a register. After whole days
transaction the surplus money remains in the cash counter is put back in the vault and known
as the closing balance. Money is received and paid in this section.

3.22 Cash Receipt

 At first the depositor fills up the deposit in slip. There are two types of deposits in slip
in this branch. One for savings account and another for current account.
 After filling the required deposit in slip depositor deposits the money.
 Officers at the cash counter receives the money, count it enter the amount of money in
the scroll register kept at the counter, seal the deposit in slip and sign on it with date.
 Then this slip is passed to another officer who enters the scroll number given by the
cash counter in his register along with the amount of the money, sign the slip and
keep the bank’s part of the slip. Other part is given to the depositor.
 All deposits of saving account are maintained be one officer and other accounts by
another officer.
 At the end of the day entries of both of these registers are cross checked with the
register kept at the counter to tee whether the transaction are correct or not.

3.23 Cash Payment

 First the client comes to the counter with the cheque and gives it to the officer in
charge there. The officer checks whether there are two signatures on the back of the
cheque and checks his balances in the computer. After that the officer will give it to
the cash in charge.
 Then the cash in charge verifies the signature from the signature card and permits the
officer in computer to debit the client’s account by giving posting. A posted seal with
teller number is given.
 Then the cheque is given to the teller person and he after checking everything asks the
drawer to give another signature on the back of the cheque.
 If the instrument is free of all kind of error the respected officer will ask the bearer to
sign on the back of it.
 He will then put his initial beside the bearer’s signature. She/He will also signs it on
its face, will write down the amount by red pen and will put on a scroll number from
his scroll register.
 Then the cheque will be sent to the cash counter. At the cash counter bearer will be
asked again to sign on the back of the instrument.
 The cash officer will then enter the scroll number in his register and will pay the
money to the bearer.
 At the end of the day these scroll number of the register will be compared to ensure
the correctness of the entries.

24
3.24 Sorting & Stitching:

 Sorting: At the end of the day, the amount of cash has to be sorted out in order to
identify the different type notes like – 1000, 500, 100, 50, 20, 10, 5, 2, 1 and so on.
Hundred pieces of any type of note create a bundle and ten bundles make a ring. In
this way cash is actually sorted out.

 Stitching: After sorting out the cash, bundles are stitched along with a slip bearing
the name of the bank, total number of notes and the signature of the Cash-In-Charge.
Two round seals are given at the both sides of the bundles.

3.25 Remittance (Local):

Bank is a service oriented industry and deals with public money. They provide services to
their clients through different ways. “Transfer of money/fund of one person/customer to
another person/firm/organization through the bank is called remittance”. Any person can
remit funds to anyone within the country through any of the branches of some bank by the
following means with nominal charges:

 Pay Order
 Demand Draft
 Telegraphic Transfer
 Mail Transfer

3.26 Payment Order (P.O):

This is an instrument issued by the branch of a bank for enabling the customer/purchaser to
pay certain amount of money to the order of a certain person/firm/organization/office within
the same clearing house area of the pay order issuing branch.

3.27 Demand Draft (D.D)

The Demand Draft is a written order by one branch of a bank upon another branch of the
same bank to pay a certain sum of money to or to the order of a specified person. This is an
order instrument in which the issuing branch gives instruction to the payee branch to pay
certain amount of money to the order of certain person/firm/organization.

3.28 Telegraphic Transfer (T.T)

It is an instruction duly tested sent by telex/telegram/telephone/express mail etc. to the drawer

branch for paying a certain sum of money to a specific person. This mode of transfer of fund
may be affected at the written request an account holder of the branch and against value
received from him. It is preferable to obtain a confirmatory cheque from the customer.

3.29 Mail Transfer (M.T):

In the prescribed format the purchaser/drawer branch instruct the drawer branch to pay a
specified sum of money to the payee named in the IBCA preferable by crediting his account.

25
3.30 Clearing:

Where inter-banks receivables and obligations are settled. A particular house/place under the
control and supervision the central bank of the country. Where representatives of the member
bank/schedule banks/assembles/meets together for settlement of their respective banks
receivables and payables. It sits on all working days. In our country clearing house are
organized by the Bangladesh Bank at the different big cities. There are two types of clearing:

3.31 Inward Clearing:

When a particular branch receives instrument which drawn on themselves and sent by other
member bank for collection are treated as inward clearing.

3.32 Outward Clearing:

When a particular branch receives instrument drawn on the other bank with in clearing zone
and those instruments for collection through the clearing arrangement is consider as outward
clearing for that particular branch.

3.33 Outward Bills for Collection (OBC):

Customers deposit cheque, draft etc for collection attaching with their deposit receipt.
Instrument within the range of clearing are collected through local clearing house but the
other which are outside the clearing range are collected through OBC mechanism. A
customer of UBL principal branch local office Dhaka is depositing a check of Sonali Bank
Cox’s-Bazar. New as a collecting bank UBL principal branch will perform the following
tasks.

 Received seal on deposit slip.

 UBL local office principal branch crossing indicating them as collecting bank.
 Endorsement give payees A/C will be credited on realization.
 Entry on register from where a controlling number is given.

Collecting bank can collect it either by its branches of by the drawer’s bank they will forward
the bill then to that articulate branch. OBC number will be given on the forwarding letter.

3.34 Inward Bills for Collection (IBC)

In this case bank will work as an agent of the collection bank branch receives a forwarding
letter and the bill. Next steps are:

 Entry in the IBC register, IBC number given.

 Endorsement given- “our branch endorsement confirmed”.
 The instrument is sent to clearing for collection.
 Miscellaneous creditor A/C.

26
CHAPTER-04

27
 Overview of the Organization

4.1 History of Uttara Bank Limited:

At first Uttara Bank was established in 1964 named Eastern Banking Corporation. After
liberation war it named Uttara Bank. In 1984 published market share and named Uttara Bank
Limited. Uttara Bank is one of the oldest and largest commercial banks in private sector in
Bangladesh, with years of experience. Adaptation of modern technology both in terms of
equipment and banking practice ensures efficient service to clients. 207 branches at home and
600 affiliates worldwide create efficient networking and reach capability. Uttara is a bank
that serves both clients and country. The bank is listed in the Dhaka Stock Exchange Limited
and Chittagong Stock Exchange Limited as a publicly quoted company for trading of its
shares.

4.2Uttara Bank at a Glance:

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 service to clients. There are some also key related information about this particular
bank are given in below.

 UBL is one the largest private banks in Bangladesh. It operates through 211 fully
computerized branches ensuring best possible and fastest services to its valued clients.
 The bank has more than 600 foreign correspondents worldwide and total number of
employees nearly 3562.
 The Board of directors consists of 14 members. The banks is headed by the Meaning Director
who is the Chief Executive Officer
 The head office is located at Bank’s own 18-storied building at Motijheel, the commercial
center of the capital, Dhaka.

4.3 Vision of Uttara Bank Limited:

Its vision always strive to achieve superior financial performance is considered a leading
Bank by reputation and performance.

 To established and maintain modern banking techniques, to ensure the soundness and
development of financial system.
 Try to encourage saving in the form of direct investment.
 Be one of the best banks in the Bangladesh.
 To contribute in the socio-economic development of Bangladesh.
 To established relationship banking and improve service quality through development
of strategic marketing plan.
 To ensure optimum utilization of all available resources.

4.4 Mission of Uttara Bank Limited:

To established banking through the introduction of welfare oriented banking system and also
ensure equity and justice in the field of all economic activities, achieved balanced growth and
28
equitable development through diversified investment operations particularly in the priority
sectors and development areas of the country. To encourage socio-economic uplift and
financial service to the lower income community particularly in the rural areas.

4.5 Strategies of Uttara Bank Limited:

 To strive for customers best satisfaction & earn their confidence

 To manage & operate the Bank in the most effective manner
 To identify customers needs & monitor their perception towards meeting those
requirements
 To review & updates policies, procedures & practices to enhance the ability to extend
better services to the customers.
 To train & develop all employees & provide them adequate resources so that the
customer’s needs are reasonably addressed.
 To promote organizational efficiency by communicating company plans, polices &
procedures openly to the employees in a timely fashion.
 To cultivate a congenial working environment.

4.6 Function of Uttara Bank Limited:

Functions of UBL are based on profit earning (as commercial bank), social welfare and
development of country. They usually have following functions:

 To maintain all types of deposit accounts.

 To make investment.
 To conduct foreign exchange business.
 To extend other banking services.
 To conduct social welfare, activities through banking.
 To finance in industrial sectors like BSB, BSRS, and SME.
 To finance in house building.
 To make the lifestyle easy through banking services.

4.7 Nature of Business:

The bank is carrying out commercial, corporate, investment and retail banking related
services to its customers through its 207 branches following the provisions of the bank
company act 1991 as follows;

a) Corporate finance
b) Corresponding banking
c) Documentary credits
d) Foreign exchange
e) Guarantees
f) Syndicated finance
g) Other related business

29
4.8 Corporate Social Responsibility:

Uttara Bank Ltd embraces a culture of continuous involvement to fulfill our corporate social
responsibility. We have a deep commitment, loyalty and a high sense of responsibility to our
nation and its people. Uttara Bank Ltd conforms to all of the stringent regulations issued by
the Government and the Bangladesh bank. As part of our corporate social responsibility, bank
contributes greatly to the nourishment of the country’s all types of calamities, arts, culture
and sports. As part of its strong commitment to upholding corporate social responsibility,
bank donated Tk 10.00 million to Chief Advisor’s Relief Fund to help the massively
distressed people who were affected by flood & devastating cyclone since 2007.

4.9 Uttara Bank Networking in Bangladesh:

UBL Networks
Corporate offices (corporate branch & Local office) 2
Regional office 12
Worldwide affiliates 600
Total Branches (including corporate branch & local office) 211
Authorized Dealer Branches 38
Treasury & Dealing Room 1
Training Institute 1
Man power 3562

Figure: Recent survey shows that UBL Networks in Bangladesh

30
CHAPTER: 5

31
 Duties & Responsibilities

5.1 Internship Position & Duties

Throughout my internee period I have worked with more or less all the CSO (Customer
Service Officer) and try to help at my level best to help them in their work. So basically I
know more about general banking. The tasks that I have done throughout my internee period
are given below:

5.2 Account Opening Section

I have started my internee with responsibility of Customer Service Officer. I was assigned to
work with account opening department. In a whole day I have to open more than 5 accounts.
Customer account opening is a lengthy process. If the customers have the documents that she/
he is needed to open that particular he or she must fill an account correctly. If there is any
problem found in the fulfillment of the from is wrongly filled, the from will be return on next
day. So the form must be filled correctly. If all the things are right, the CSM give the
permission to open the account. They have to fill up a KYC (Know Your Customer) from to
have more idea about the customer. The main purpose of this from is to give all necessary
information regarding the account, like the charges, benefits and if any specific inquiry the
customer ideas.

I also open FDR account, DPS, different type of account like-

 Short Notice Deposit Account

 Savings Account
 Current Account
 Short Term Deposit Account
 Other Deposit Scheme Accounts

5.3 Clearing Section:

I have worked total more than 10 days in this section. The main responsibilities was received
several cheques from their clients. I also attached in the front side of the cheque clearing seal
and at the back side endorsement seal. My responsibility to ensure account number, account
holder name, which bank’s cheque etc. After confirming this I sent this cheque to my boss.
He was responsible for completing the other tasks.

5.4 Provide Information of all type of Customer Query:

I also provided information to all type of customer queries. Each day many people come to
the branch with various types of problems. I tried my best to give them the proper
information and try to solve their problem. Some of the information like account opening
requirements, DPS & FDR related information, give instruction for address change, signature
change, and mandate instruction, nominee change, and account closing information, DPS
closing information, FDR closing formalities, pay order, document issue and all type of
queries.

32
5.5 Verification of Signature in Different Issue:

Verification of signature is very important for banking transaction. Because one of the
important proves to be an account holder is the signature. It was also a risky issue. I used to
verify signature for different issues like for balance inquiry, stop payment instruction, address
change, nominee change, signature change, cheque book delivery etc.

5.6 Payment Order Issue:

Pay Order is an instrument, which is used to remit money with in a city thorough banking
channel the instruments is generally safe as most of them are crossed. I issued more then 5 to
6 pay order in each day. At first Customer is supplied with PO form. After filling the form
the customer pays the money in cash or by cheque. The concerned officer then issues PO on
its specific block. This block has three parts, one for bank and other two for the customer.
‘A/C Payee’ crossing is sealed on all Pay Orders issued by the bank with authorized officer’s
signature in the block. At the end PO is provided to customer.

5.7 Demand Draft Issue:

The Demand Draft is a written order by one branch of a bank upon another branch of the
same bank to pay a certain sum of money to or to the order of a specified person. This is an
order instrument in which the issuing branch gives instruction to the payee branch to pay
certain amount of money to the order of certain person/firm/organization. I issued more then
5 to 6 demand draft in each day. At first Customer is supplied with DD form. After filling the
form the customer pays the money in cash. Then I give entry in the DD register book.

5.8 Receiving & Sending Letter:

I received different types of letter from different organization like other banks which I
records in inward book. I also send different types of letter to the different organization which
I record in the outward book.

5.9 Learning Points:

I have learnt so many things about the banking sector. Now, it is very clear to me how Uttara
Bank Limited operates their operation on the ground of general banking in this country. I
explain this as follows:

 How to open their several account in their bank.

 What are the requirements for opening their account.
 What are the procedures to close an account.
 How clearing house operates their operation.
 How to provide information to their client.
 How to verify signature in different issue.
 How to renew FDR account.
 How to issue a Pay Order.
 How to issue Demand Draft.
 How to issue/receive Telegraphic Transfer.
 How to issue/receive Mail Transfer.
 Finally, I learned how to prepare an internship report

33
5.10 Trade Finance (Foreign Exchange):

Trade finance is an important and integral part of commercial banking which works to
facilitate the foreign exchange transactions. It is very much Lucrative and remunerative
operation for the bank. In order to conduct Foreign Exchange operation systematically and
methodically the Foreign Exchange Regulation (FER) Act, 1947 enacted on the 11 March
1947 in the British-India provides the legal basis for regulating receipts and payments and
dealings in the foreign exchange and securities (Bangladesh Bank, 2012). Basic regulations
for conducting Foreign Exchange Operation are issued by the Government as well as by the
Bangladesh Bank in the form of Public notice, circulars, SROs etc. Knowing how significant
part trade financing plays in the operation of a commercial bank, all the major branches of
PBL have the foreign exchange department.
5.11 Trade finance:
Trade finance refers to financing international trading transactions. In this financing
arrangement, the bank or other institution of the importer provides for paying for goods
imported on behalf of the importer through instruments such as LC/Letter of Credit
(Wikipedia, 2013). Trade finance typically involves short-term financing to facilitate the
import and export of goods. These operations may involve payment if documentary
requirements are met or may instead involve payment if the original obligor defaults on the
commercial terms of the transactions (e.g., guarantees or standby letters of credit). Either
way, the respective financial institution or bank facilitates the transaction by insuring the
payment. Trade finance includes such activities as lending, issuing letters of credit, factoring,
export credit and insurance (Trade Finance, 2016). Trade finance is of vital importance to the
global economy, with the World Trade Organization estimating that 80 to 90% of global
trade is reliant on this method of financing (Invest podia, 2016).
5.12 Foreign exchange:
Foreign Exchange means exchange of foreign currency between two countries. If the
"Foreign Exchange" is considered as a subject, it means all kinds of transaction related to
foreign currency. In other words, foreign exchange deals with foreign financial transactions.
Foreign exchange transactions encompass everything from the conversion of currencies by a
traveler to billion-dollar payments made by corporate giants and governments for goods and
services purchased overseas through trade finance

34
5.13 Functions of Foreign Exchange Department:

Foreign exchange department performs many functions to facilitate the foreign exchange
transactions. These functions are:

 Facilitating import trade

 Facilitating export trade

 Provide funded and non-funded credit facility

 Maintaining foreign currency accounts

 Selling of foreign currency bonds

The foreign exchange department consists of mainly two sections- L/C operations and foreign
Remittance, which perform all the functions mentioned above.

Foreign exchange
Department

L/C operations Foreign Remittance

Import Export
operation operations Foreign Inward Outward
Current A/C Remitt Remittan
ance ce

5.14 Regulation for the foreign exchange division:

Foreign Exchange transactions are being controlled by the following rules and regulations:

 Foreign Exchange act 1047.

 Bangladesh bank issues Foreign Exchange Circular from time to time to

control the export, import and remittance operation.

 Ministries of commerce issues export and import policies giving basic

formalities for import and export.

35
  Sometimes CCI issues public notices for any kind of change in Foreign
Exchange transaction.

 Bangladesh bank published two volumes in 1996. These comprise the

complete instructions to be followed by the authorized dealers in transactions
related to Foreign Exchange.(Bangladesh Bank, 2012)

5.15 Foreign exchange transaction terms:

There are some terms which are important to know for foreign exchange transactions. It will
help better understand the foreign exchange transaction mechanism.

 The issuing bank: It is the bank that issues documentary credit on account of its client.

 The advising bank: This is the bank acting as agent of the issuing bank, to advise L\C to
the exporter or beneficiary.

 Reimbursing bank: This is the bank acting as agent of the issuing bank, authorized to
make payment or to honor reimbursing claim of the negotiating bank.

 Negotiating bank: This bank provides value to the beneficiary against presentation of
documents complying credits terms. Usually this is exporter’s bank that purchases the
export documents.

 The applicant/importer/buyer: The importer or buyer is the applicant of a Letter of

Credit. Applicant must be the client of the issuing bank.

 The beneficiary/exporter/seller: The exporter or seller of the goods is the beneficiary

of a Letter of Credit.

 Notify party: The notify party is the Bank to whom the arrival of shipment has to be
notified or Informed.

 Letter of credit:

Letter of Credit (L/C) is a credit contract whereby the buyer's bank is committed (on behalf
of the buyer) to place an agreed amount of money at th seller's disposal under some agreed
conditions.
Since the agreed conditions include amongst other things, the presentations of some specified
documents, the letter of credit is called Documentary letter of Credit. The Uniform and
practices for Documentary credit published by International Chamber of Commerce (1993)
Revision, publication no 500 defines Documentary Credit: Any arrangement, however

36
named or described, where by bank (the issuing bank) acting at the request and on the
instructions of a customer (the applicant) or its own behalf (SA, ICC Publishing, 1993).
1. Is to make a payment to or to the order of a third party (the beneficiary) or is to
accept and pay bills of exchange drawn by the beneficiary.
2. Authorizes another bank to effect such payment.
3. Authorizes another bank to negotiate against stipulated documents provided that
the terms and conditions are compiled with.

5.16 Import:

Bangladesh is one of the developing countries in the world. So like the other developing
countries Bangladesh imports more than it exports. Imports of goods into the Bangladesh
is regulated by the Ministry of Commerce in the terms of the Import- Export Act, 1950,
various Import policy orders and also public notices issued from time to time by the office
of the Chief Controller of Import and Export (CCI&E). Imports are the foreign goods and
services purchased by the customer, firms and government in Bangladesh. The importers are
asked by their exporters to open Letter of Credits (LC), so that their payment against goods is
insured. The importer takes help of a bank to import their goods through LC. The bank
defines import as to bring in, from abroad, something kind of goods and services. It includes
the following services-
1 .Letter of credit opening
2. Presentation/retirement of import document

The import mechanism first involves the issuing of a L/C as an instrument by a bank on
behalf of one of its customers, authorizing an individual or a firm to draw draft on the bank or
on one of its correspondents for its account under certain conditions which is predetermined
in the credit. Secondly the bank’s import mechanism involves the retirement of import
mechanism on receiving the payment or under certain conditions against the security of
payments made by the importer in documents required an advance payment date.

37
 Year Import (million taka)
2012 80,617
2013 99,424
2014 98,452
2015 168,704
2016 190,384

5.17 1Remittance performance and process of UB:

Our 10 expatriates are a source of pride for Bangladesh. They represent us abroad by
building our image. They also spread the richness of our cultures across the globe. In that
sense, they are the ambassadors of goodwill for Bangladesh. The foreign exchange they send
home is the second largest source of much needed foreign exchange for our economic
development. In fact, if we adjust import costs against export earnings of the garments
sector which brings highest amount of foreign exchange to the national economy, remittance
will figure as the single largest source of foreign exchange for Bangladesh.

Uttara BankLimited is continuously striving to build its remittance business by rendering

quality services through a network of reputed banks and exchange houses around the globe
along with an extensive network in the country to deliver money to the beneficiaries in the
safest form and quickest possible time.

2.18 Features of UBL Remittance Services:

 No service charge from beneficiaries in Bangladesh
 Instant Cash Withdrawal facility from any branches of Southeast Bank
 Confidentiality of transactions
 Instant credit to beneficiaries accounts with Southeast Bank;
 Same day cash withdrawal facility from the branches of One Bank,
Mutual Trust Bank,Jamuna Bank, Al-Arafah Islami Bank, BRAC Bank,
Bank Asia, Shahjalal Islami Bank, Mercantile Bank and First Security
Islami Bank
 Same day cash payment facility from 600 outlets of reputed NGOs
(RDRS, Society for Social Services - SSS and Jagorani Chakra

38
 Foundation - JCF)
 Direct communication with both Sender and Receiver for solving queries
relating to cash payment/account deposit (if any)
 Disbursement of foreign remittance through ATM booths using My
 Remit Card
 Provide Anti-Money Laundering (AML) and Combating Terrorist
Financing (CTF) advice.

5.19 Uttara BankRemittance report:

Year Remittance (million taka)

2016 50,890

2015 38,433

2014 35,447

2013 30,669

2012 20,905

Table: Remittance from 2012 to 2016 (Source: Uttara Bank Limited, 2012)

39
5.20 Foreign Remittance collection statement of Uttara BankLtd. (Corporate
Branch):

(In Million Taka)

Month 2013 2014 2015 2016

January 182.80 142.20 189.10 158.40

February 131.00 115.30 150.00 133.20

March 157.60 193.30 250.00 142.40

April 117.80 250.00 131.80 166.20

May 250.00 150.00 123.40 180.20

June 175.70 193.40 196.40 191.40

July 152.00 221.40 122.80 184.30

August 210.00 119.80 182.90 156.30

September 214.90 145.10 148.60 213.00

October 281.40 179.30 194.70 166.40

November 212.40 157.10 113.60 151.00

December 257.60 123.50 200.30 160.50

Total 2342.20 1990.40 2013.60 2003.30

(In
Million
Taka)

40
CHAPTER: 6

41
 Recommendation, Finding &Conclusion

6.1 Recommendations:
On the basis of the findings from the observation and research, there are some
recommendations that can be used for fruitful purposes.

 For Uttara Bank Limited:

 The Bank is still using lots of registers to record foreign exchange

transactions. This is really time consuming and has possibility of occurring
errors. Moreover, space is limited for hard paper documents. Therefore, the
bank should come under complete computerization as soon as possible.

 Must withdraw the SMS banking charges or at least give the customers
preference about using this service to avoid customer dissatisfaction.

 Priority suit should be setup in the branches to provide quick and better
service to valued and important customers

 Bank must introduce new services time to time as competition is increasing

 The remuneration package could be increased to further motivate the

employees.

 Should take necessary steps to adapt to the new online reporting system.

 Uttara Bank should increases their number of employees to reduce stress and
bring momentum in service delivery.

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6.2 Conclusion:

Foreign Exchange Division is crucial for any bank. A bank’s performance largely depends on
this division. Foreign Exchange activities have an equal significance to economic growth and
development of the country. So through this division the banks are contributing to the interest
of the country. Working three months in Uttara Bank Ltd. Goalabazar Branch Sylhet, the
overall procedure of Overall activities has been observed. As being the top class bank of
Bangladesh (according to the CAMEL rating), it has a good reputation and faith to exporters-
importers of Bangladesh. Moreover, Uttara Bank Ltd. has got a fleet of talented, experienced
and efficient officials working in the Foreign Exchange Division. They are quite efficient at
handling large scale of export-import operation and maintaining a good relation with the
client, as well as reporting the trade finance data to Bangladesh Bank, within their tight
schedule. The findings from the research imply to conclude that the employees of the Uttara
Bank Ltd. Who report the trade finance data to the central bank; have moderately rejected to
recognize the new online reporting system, introduced by Bangladesh Bank, as a good one.
Although they have accepted the fact that the new system is more convenient to a slight
degree, they are all quite dissatisfied with the amount of time it consumes to use the system.
However, the online system is on its upgrading phase. After each upgrade, training programs
should be conducted to help the users learn about the changes and also to help the developers
of the system take feedback for further upgrading. The commercial banks may also increase
their manpower in the foreign exchange department to take on the increased work pressure
mounted over the introduction of the new system.

Further research:
Since the selected factors in the conducted research only cover 65% of the influencing
factors, of which only two affect the system significantly, there is a scope of further research
to find out some other significant factors that could help both the parties to improve the new
online system further. Besides, there should be more research on the issue considering the
users from other commercial banks as well.

43
Reference:

 Bangladesh Bank, Central Bank of Bangladesh. (2012). Establishment 2013.

 Retrieved from http://www.bangladesh-bank.org/aboutus/index.php

 Bangladesh Bank, Central Bank of Bangladesh. (2012). Online Foreign

Exchange Transaction Monitoring System 2013 . Retrieved from
http://www.bangladesh-bank.org/eservices.php

 Bangladesh Bank, Central Bank of Bangladesh. (2012). Regulations and

guidelines.
 Foreign Exchange guideline vol 1. Retrieved from http://www.bangladesh-
bank.org/openpdf.php

 International Trade Administration. (2007). Trade Finance Guide: A Quick

Referencefor U.S. Exporters. Washington, USA: U.S. Department of
Commerce.
 Retrieved from
http://trade.gov/media/publications/pdf/trade_finance_guide2007.pdf

 Investopedia. (2013). Foreign Exchange Definition. Retrieved from

http://www.investopedia.com/terms/f/foreign-exchange.asp

 Investopedia. (2013). Trade Finance Definition. Retrieved from

http://www.investopedia.com/terms/t/tradefinance.asp

 Uttara BankLimited, a bank with a difference. (2011). About Uttara

Bank2013.Retrieved from
https://www.primebank.com.bd/index.php/home/about

 Uttara BankLtd. (2012). Annual Report 2011. Dhaka, Bangladesh: Uttara

BankLimited

44
 Uttara BankLtd. (2013). Annual Report 2012. Dhaka, Bangladesh: Uttara
Bank Limited

 SA, ICC Publishing. (1993). Uniform Customs and Practice for Documentary
Credits. Documentary Credits. UK: 2nd edition, Butterworth. Retrieved from
http://freepdfdb.com/doc/5-2865807.html

 Sethi, TT. (2004). Money Baking and International Trade. New Delhi: S.
Chand &Company Ltd.

 The Foreign Exchange Committee. (2004). Guidelines for Foreign Exchange

Trading
 Activities. New York: The Foreign Exchange Committee. Retrieved from
http://www.newyorkfed.org/fxc/2004/fxc040713b.pdf

 Trade Finance. (2013). What is trade finance? Retrieved from

http://www.tradefinancemagazine.com/AboutUs/Stub/WhatIsTradeFinance.ht
ml

 Wikipedia, the free encyclopedia. (2013). Trade finance 2013. Retrieved from
http://en.wikipedia.org/wiki/Trade_finance

45
 BIBLIOGRAPHY

Journal:
 Journal of Bangladesh bank
 Oxford dictionary 2006 (2006) “Dictionary of English” fourth edition, Oxford
University Press, Newyork, USA.
 Khan Dr. Ashraf & Dr. Alauddin by Modern Banking & Insurance (2005)

Annual Reports:
 Annual reports of the Bangladesh bank
 Uttara BankLtd. Annual reports 2014
 Uttara BankLtd. Head Office Circulars;2011,2014,2015
 Uttara BankLtd. Brochures of Loans and Advances 2014
 Annual Reports Of PBL

Bulletin:
 Bangladesh Bank

Synopsis:
 History of Banking In Bangladesh

Websites:
 www.banglapedia.com
 www.google.com
 www.wikipedia.com
 www.primebank.com.bd

Others:
 Personnel of Sylhet Corporate Branches
 Schedule of Charges January 01, 2015.
 Newspapers

46
 List of Acronym

MU Metropolitan University

PBL Uttara BankLtd

GB General Banking Deprtment

CD Current Deposite

SD Saving Deposit

STD Short Term Deposit

FDR Fixed Deposit Receipts

DPS Deposit Pension Scheme

A/C Account

L/C Letter of Credit

CIB Credit Information Bureau

VAT Value Added Tax

SWIFT Society for worldwide inter- bank finanacial

Telecommunication

BTB Back to Back

GDP Gross Domestic Product

CAMELS C= Capital Adequacy, A= Asset Quality, M=

Management Quality, E= Earnings, L=
Liquidity, S= Sensitively to Market Risk

47