Final Report of Uttara Bank Copy

7/24/2019 Final Report of Uttara Bank Copy

1/55

INTERNSHIP REPORT

ON

GENERAL BANKING ACTIVITIES OF UTTARA BANK LTD.

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE

OF

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

IN

MANAGEMENT INFORMATION SYSTEMS

AT

UNIVERSITY OF DHAKA

DHAKA-1000, BANGLADESH

Prepared By:Neshat Akter Liza

ID: 07-028

Department of Management Information SystemsUniversity of Dhaka

Prepared For:Dr. Md. Abdul Hannan Mia

ProfessorDepartment of Management Information Systems

University of Dhaka

Date of Submission: 18th February


2/55

2 | P a g e

Letter of Transmittal

ToDr. Md. Abdul Hannan MiaProfessorManagement Information SystemsUniversity of Dhaka

Subject: Submission of Internship Report

Sir,It is my great pleasure to submit the internship report titled GENERALBANKING ACTIVITIES OF UTTARA BANK LTD. which has beenprepared as an integrated part of the course requirement of my BBAprogram. My internship was held at Uttara Bank Ltd, General BankingDepartment, Malibagh Branch.

It will be highly appreciated if you kindly accept the report. Your positiveaction about this matter would be very much helpful for my academiccareer. If you need any additional clarification or information in interpretingthis analysis, I will be glad to answer your queries.

Sincerely yours,

.Neshat Akter LizaID- 07-028Management Information SystemsUniversity of Dhaka


3/55

3 | P a g e

Declaration

Internship Report

I do hereby declare that the internship report on General bankingactivities of Uttara Bank Ltd.has been prepared by me under theguidance of Dr. Md. Abdul Hanna Mia, Professor, ManagementInformation Systems, University of Dhaka. For the partial fulfillment of BBAprogram from the department of Management Information Systems (MIS),

Faculty of Business Studies, University of Dhaka.

I further affirm that the work is original and the report has not beensubmitted by any other students for the completion of BBA or other degree.

.Neshat Akter LizaID- 07-028Management Information SystemsUniversity of Dhaka


4/55

4 | P a g e

Supervisors Declaration

This is certify that the internship report General Banking Activities ofUttara Bank Ltd. is done by Neshat Akter Liza successfully under mysupervision as a partial fulfillment of the requirement of Bachelor ofBusiness Administration degree from the Department of ManagementInformation Systems, Faculty of Business Studies, University of Dhaka. Tothe best of my knowledge and as per her declaration the report is anauthentic work on the issue and has not been submitted to anywhere forawarding any degree. I wish his every success in life.

Dr. Md. Abdul Hanna MiaProfessorDepartment of Management Information Systems (MIS)Faculty of Business StudiesUniversity of Dhaka.


5/55

5 | P a g e

Acknowledgement

At first, I would like to express my deep gratitude to Almighty Allah, thesupreme authority of the universe. It is my greatest pleasure to get theopportunity to complete my internship from Uttara Bank Ltd. I think myexperience at Uttara Bank will provide me with lots of practical knowledgeregarding the banking industry.

Now I would like to thank my academic supervisor Dr. Md. Abdul HannanMia, Professor, Management Information Systems, University of Dhaka for

his untiring guidance, help, effort, and suggestion. Without his directguidance this report couldnt be possible. A forbearing personality, Dr. Md.Abdul Hannan Mia, constantly inspired me to make the report better andshare his knowledge with me. I shall remain ever grateful to him for hisamazing gesture and relentless effort.

I am also thankful to my organizational supervisor Md. Hasnayen Manager,and his team, without their direct help, suggestion, and assistance it wasimpossible for me to complete this report. I was fully supported by his team

to prepare this report especially by Farhana Jesmin and Md. Masum Billahand I am indebted to them. They very patiently taught me a lot of thingsthat will help me in my future career and treated me as one of them and Iam indebted to them for their support.

I would also like to thank the authority of Uttara Bank Limited for giving me

the opportunity to work in such wonderful working environment.


6/55

6 | P a g e

Executive Summary:

The Organization to be studied for internship report is Uttara Bank Ltd.Uttara Bank Ltd. has started its journey as a private banking organization in1965. I was appointed in Uttara Bank Ltd at Malibagh Chowdhury Parabranch as an intern; I got the opportunity to acquire a closer understandingto the general banking activities.

General banking is one of the most important departments for bankingsector. It is introductory department of the bank to its customer. MalibaghChowdhury Para branch of UBL has all required of general banking and allthese section are run by manpower with their high quality banking

knowledge.

The report consists of several chapters. Each chapter contains necessaryinformation. The report explains the Origin, Background, ProblemStatement, Scope, Limitations, Methodology and Objectives. Theelementary objective of this report is to explore the general bankingactivities of UBL.

The report demonstrates companys vision, mission, objectives, strategies

and goals. The companys vision is To stand out as a pioneer banking

institution in Bangladesh and contribute significantly to the national

economy. The mission is to provide high quality financial services, fast &

accurate customer services and innovative banking services to up to its

remotest customers.

Companys main divisions and departments along with its sections andsub-sections are stated. Industry Analysis has been added also.The topic of the report is The general banking activities of UBL. The

report exemplify how general banking activities occur these activities

enhance the performance of bank.


7/55

7 | P a g e

1. Introduction:

Banking is one of the most competitive industries of Bangladesh that has

been a huge amount of growth during the last decade. Banking

organization has become essential for almost every person to deal withbanks somehow in their bread & better life. As a result, bank has become

essential for every person to have some idea on the bank and banking

procedure. If we want to build our career in banking area only theoretical

knowledge would not help us. As internship program is established to

gather practical knowledge regarding various sector of economy, I choose

to get practical knowledge regarding banking sector and I select Uttara

Bank as my organization to work which is the leading bank in the private

banking sector.

1.1. Origin of Report:

Internship Program of Department of Management Information Systems,

University of Dhaka is a graduation requirement for the BBA students. This

report is a partial requirement of the Internship program. Assigned by the

institutional supervisor, this report is prepared for internship about Thegeneral banking activities of Uttara Bank LTD.

1.2. Problem Statement:

This Internship report titled as General banking activities of Uttara

Bank LTD

In the current banking business world, general banking iscovering a large area of banking activities.

1.3. Objective of the report:

The internship report is about analyzing the general banking activities. Thereport is made to get practical exposure to organizational environment as


8/55

8 | P a g e

well as to understand the system and methodology adopted in conductingday to day banking by the Uttara Bank Limited.

1.4. Specific objectives:

Some other objectives of the report are given below: To have an exposed on the banking environment of Bangladesh To point out the tools of other tasks adopted by Uttara Bank Limited. To evaluate employees customer satisfaction of Uttara Bank Limited. To gain practical knowledge regarding the bank and its current

functions. Historical background of the Uttara Bank Limited. To have some practical experience of job life.

1.5. Scope of the Report:

Uttara Bank Limited is one of the traditional banks of Bangladesh the report

provided me with an opportunity to explore the general banking activities of

Uttara Bank Limited. This report covers actual opinion of the customer or

the potential customers and the guest who came through Uttara Bank of

Malibagh branch. It also covers the organizational overview & structure,

background, basic functions, transaction procedure, customer dealings &performance of the bank.

Apart from that, it provided me a great deal of exposure to interact with high

profile managers of the company.

1.6. Methodology:

The methodology of the study required data at first. This methodology waschosen to provide an initial rapid assessment of this complex and dynamicsector. Basically, this is a theoretical study. But there are some quantitativeinformation incorporated to pin point the reality. Throughout the studyseveral subjects are highlighted requiring future study. The methodology ofthe report includes direct observation, oral communication with theemployee of all departments of Uttara Bank Limited Malibagh branch.


9/55

9 | P a g e

1.6.1 Data Source:

Data for this report was extracted from primary sources as well assecondary sources.

Primary Data:

Primary Data was collected though questionnaire survey on customerssatisfaction, practical desk work and direct interview was done withemployees of Uttara Bank Limited.

Secondary Data:

Majority of the information was collected from Annual Report of UBL,informal discussions mainly with supervisor and team members,document of UBLMalibagh branch, newspaper (financial express) andUBL official web sites.

1.6.2 Questionnaire design:

The questionnaire was designed in such a way so that the view of

respondents articulated properly regarding each and every issue. Therewere five options for each question and respondent were only allowed toselect one answer.

1.7. Limitation of the study:

Every process usually carries limitations with it. This study is not an

exception. The limitations that were faced on the way to this internshipreport are stated below:

Time constraint was a big factor and I had to do this report along withmy regular office work.


10/55

10 | P a g e

Data availability is another big issue here because company was notwilling to disclose few the confidential information regarding theirmanagerial strategies and plans.

I have no previous experience which is hampered my work They do not use modern equipment to record the database regarding

the customer and client. The website of the bank is not that much rich to collect data. As the data was collected through the surveyor, it might hamper the

data validity and reliability.

Even though there are some limitations, I tried my level best to collectadequate data and information to make the report meaningful.

2. About UBL:

2.1. Overview of UBL:

UTTARA B ANK LIMITED is one of the oldest and largest Commercialbank in the private sector in Bangladesh. it provides mass banking servicesto the customers through its branch network all over the country .this bankhas been playing vital role in socio economic ,industrial and agriculturaldevelopment of the country.

The prosperity of country depends on its economic activities. Like any othersphere of modern socio economic activities, banking is an powerfulmedium of bringing about socio economic changes of a developing country.Without adequate banking facilities agriculture, commerce and industrycannot be flourished. A suitable developed banking system can provide the

necessary drives for the economic growth of the country. Because bankingsystem is linked with the whole economy of the country.

UTTARA BANK LIMITED is a private commercial bank, offers a range ofmass banking services and products in Bangladesh. Its deposit productsinclude savings bank account, fixed deposit accounts, current accounts,


11/55

11 | P a g e

pension accounts, and foreign currency accounts. The bank loan and leaseservices are composed micro credit, SME financing, industrial loans,working capital financing , export credit , import credit, bill purchase, letterof credit, letter of guarantee, lease financing, transport financing consumerloan schemes and house building loans. It also offers various remittanceservices including remittance of fund from abroad to Bangladesh.

2.2. Historical Background of the UBL:

At first Uttara Bank Limited was established in 1964 named as anEASTERN BANKING CORPORATION. After liberation war it was changedto Uttara Bank .In 1984 it issued its share through stock exchange and

named as Uttara Bank Limited. Uttara Bank is one of the largest and oldestprivate sector commercial banks in Bangladesh with years of experience.

Adaption of modern technology, both modern equipment and bankingpractice ensure efficient service to their customers. Within 207 branches athome and 600 affiliates worldwide create efficient networking and wellcapability. Uttara Bank is serving both clients and country. It started itsbanking business through opening of import letters of credit in favor offoreign suppliers on behalf of various import clients. After starting operationas a commercial bank from November 1 , 1985 onwards, side by side withthe traditional products it also started providing all types of foreignexchange related services to its different categories of clients. As such theestablishment of a strong international division was felt since the veryinception of the bank. The division has been managing by executives andofficers who are well conversant with foreign exchange related tooperations so that the branches dealing in foreign exchange relatedtransactions could get all the supports from the head office, besides givinginternational trade related support to the branches the division isresponsible for proper maintenance of the nostrums accounts investment ofexcess foreign reserves, for ensuring proper compliance of the foreign

exchange regulation by the branches handling foreign exchange business.

2.3. UBL at Glance:

Business name: Uttara Bank Limited (UBL)

It is one of the oldest private commercial Bank in Bangladesh.


12/55

12 | P a g e

It was formally known as Eastern Banking Corporation.

It has been working as private commercial Bank from the year of

1983.

Currently it is operating with 207 branches in home & 600

international correspondents. All the branches of UBL are fully computerized with changing

environment.

About 3,562 employees are in the winning team of UBL.

The Head Office is located at Banks own 18-storied building at

Motijheel, the commercial center of the capital, Dhaka.

Registered Office is located at90, Motijheel Commercial Area, Dhaka-

1000, Bangladesh, GPO Box- 217 & 818.

Corporate Office 2Regional Office 12Worldwide Affiliates 600Total Branches 227

Authorized Dealer Branches 39Treasury & Dealing Room 1

Training Institute 1Man Power 3562

Figure: UBL Network

2.3. Location of UBL:

UBL has its own building of 18 stored that is using as head office located at

Motijheel Commercial Area of Dhaka city. Bank has also its own building in

the following locations-


13/55

13 | P a g e

Local office,

Eastern Plaza branch,

Hotel Isakha branch,

Dar-us-salam road branch,

Lease financing unit in Eastern Tower Building, Training institute of the Bank at Eastern plus (145, shantinagar),

Dhaka,

Nabagram branch in Manikgonj,

Zonal office and KDA branch in Khulna and Shaheb Bazar branch in

Rajshahi.

2.4. Vision, Mission, Goals and Strategies:

2.4.1. Vision statement:

To stand out as a pioneer banking institution in Bangladesh and contribute

significantly to the national economy.

2.4.2. Mission statement:

High quality financial services with the help of the latest

technology.

Fast and accurate customer services.

Balance growth strategy.

High standard business ethics. Innovative banking at a competitive price.

Steady return on Shareholders equity.

Quality human resources.

Firm commitment to the society and the growth of national

economy.


14/55

14 | P a g e

2.4.3. Goals:

Uttara bank will be the absolute market leader in the number of loans given

to small and medium sized enterprises throughtout Bangladesh. It will be aworld-class organization in terms of service quality and establishing

relationships that help its customer to develop and grow successfully. It will

be the bank of choice both for its employees and its customers, the model

bank in this part of the world.

2.4.4 Strategy of UBL:

To strive for customers best satisfaction & their confidence

To manage & operate the bank in the most effective manner.

To identify customer needs & monitor their perception towards

meeting those requirement

To review & updates policies, procedures & practices to

enhance the ability to extend better service to customer.

To train & develop all employees & provide them adequate

resources so that the customer needs are reasonably

addressed. To cultivate a congenial working environment.

To diversify portfolio both the retail & wholesale market

2.5. Organizational structure of Uttara Bank Limited:

Truly organizational form follows function for banks usually are organized tocarry out the roles assigned to them as efficiently as possible. Bank size is

also a significant factor in determining how banks are organized. However,

a Banks role and size are not the only determinants of how it is organized

or how well it performs. Government regulation has played a major role in

shaping the performance and diversity of banking organizations that


15/55

15 | P a g e

operate around the globe. The organizational structure of Uttara Bank Ltd.

is as under:

ChairmanVice Chairman

DirectorsManaging Directors

Additional Managing DirectorDeputy Managing Director

Executive General ManagerGeneral Manager

Deputy General Manager

Assistant General ManagerSenior Principal Officer

Principal OfficerSenior Officer

Officer G-IIAssistant Officer

Figure: Organizational structure

2.6. Different Division and Department of UBL:

2.6.1 Human Resource Division:

Personnel Department

Disciplinary Department

Test Key Department Research & Planning Department

Risk Management Department

2.6.2. Central Account Division:


16/55

16 | P a g e

Account Department

Reconciliation Department

2.6.3. Credit Division:

Approval Department

Admin. & Monitoring Department

Lease Finance Department

Recovery Department

2.6.4. Internal Control & Compliance Division:

Audit & Inspection Department

Monitoring Department

Compliance Department

2.6.5. Banking Control & Common Services Division:

Anti-money Laundering Department

Branches Operation Department

Business Promotion Department Green banking Department

2.6.6. Board & Share Division:

Board Department

Share Department

2.6.7. International Division:

Corresponding Banking Department

Remittance Department

Trade Service department


17/55

17 | P a g e

2.6.8. Treasury Division:

Front Office

Back Office Assets & Liability management Department

2.6.9. Establishment Division:

General Service Department

Transport Department

Stationary & Record Department

Engineering Department

2.6.10. Information & communication Technology Division:

MIS Department

Development & Support Department

Card Department

2.6.11. Corporate Banking Division:

Credit Marketing Department

Credit business Development Department

2.7. Capital and Reserve Fund:

2.8. Capital adequacy:


18/55

18 | P a g e

2.9. Human Resources:

The Bank gives preference for the development of its employees. For that

reason, the bank undertakes different training program & Research &

Development (R&D) time to time. Development of human resources isgoing on in the following ways-

Banks own training institute has been striving to bring about a qualitative

change and improvement in human resources of the bank by imparting

continuous different training throughout the whole year.

Guest speakers specialized in banking participate in each training program

of the Bank in addition to highly educated faculty members of the staff of

the Bank participated.

A member of executives and officials are sent to various training institutions

including Bangladesh Institute of Bank Management (BIBM) and abroad

for higher training.

Board of Director:

Azharul Islam ChairmanMr. Iftekharul Islam Vice ChairmanMr. Syed A.N.M. Wahed DirectorEngr. Tofazzal Hossain DirectorMr. Asif Rahman DirectorMr. Faruque Alamgir DirectorMr. Md Arif Rahman DirectorCol .Engr.M.S Kamal DirectorMr. Abul Barq Alvi DirectorDr. Md. Nazmul Karim Chowdhury DirectorMr. M. Tajul Islam DirectorMr. Md. Kamal Akhtar Independent DirectorDr. Md, Rezaul Karim Mazumder Independent DirectorMr. Shaikh Abdul Aziz Managing Director

Figure: Board of Director


19/55

19 | P a g e

2.10. Product & Services of UBL:

The product and services of uttara bank limited can be broadly classifies

into two groups. i.e. depository product, loan product. These are given

below:

Figure: services of UBL

4. Malibagh Branch of Uttara Bank:

Malibagh branch is one of the potential branches of Uttara bank. It started

functioning from 1967. It is situated at the 2nd floor of 90/B- MalibaghChowdhury Para, Dhaka-1219. As an online banking branch, the branch

has been continuing to extend especial importance on giving online

banking service to customer. With the enthusiastic endeavor of good

number of skilled officer the branch has been recording significant growth

in its business during last couple of years. There exists a congenial

General Banking

Different accountopen, issues of DD,TT, PO

Clearing, FD,Differnt Scheme etc

Credit and

AdvanceSOD general Loan,

House building loan,Lease finance

Staff loan,CCS etc

Foreign exchange

Export/ImportRemittanc


20/55

20 | P a g e

atmosphere among the officers in the branch. Historical data, customer

profile and team spirit of the officers give hope to its management that the

branch will see notable success in its future operation.

Malibagh branch of Uttara bank limited conduct all types commercialbusiness activities, such as rendering personal credits, local and foreigh

remittance , loans and advances, bill receiving and collection, So bank

strategy is gradually cover total area of banking.

4.1. Objectives of the Branch:

To provide banking service to the people within the commanding

area. To keep position in the competitive market.

To contribute in profitability of UBL.

4.2. Department of Branch:

The Branch has following department:

1. Account opening department2. Cash department

3. Local & foreign remittance department

4. Clearing department

5. Loans and Advances department

6. Customer service department

4.3. Number of employees of the Branch:

SL Designation Number ofemployee1. Senior Principal Officer

& manager1

2. Deputy manager 13. Principal Officer 44. Assitant Officer 3


21/55

21 | P a g e

5. Senior officer 26. Officer (Grade-2) 37. Staff 6

Total 20

Figure: number of employees of Malibagh branch

4.4. Product of UBL Malibagh branch:

Figure: Product of UBL Malibagh Branch

Deposit Modes:

Fixed deposit

Double benefit deposit scheme

Deposit pension scheme

Monthly deposit scheme

Product

Depositmodes

Loan &Advance

Remittance

Service


22/55

22 | P a g e

Short term deposit

Saving bank deposit

Current deposit

Remittance:

Pay order

Demand draft

Telegraphic Transfer

Mail transfer

Service:

Money gram

Instant cash

Express money

SWIFT service

Loan & Advance:

Demand loanTerm loan

Commercial loan

Other loan

5. ACCOUNT OPENING DEPARTMENT:

The relationship started with the customer and the bank by opening theaccount. Initially all the accounts are opened with a deposit of money by

the customer .But in this day there are several types of rules and regulation

provided by the government for opening the account. This is only for the

terrorist (JMB) arise of our country that damages the total nation. Now if

anyone wanted to open his/her account then they must sign in the money


23/55

23 | P a g e

laundering, they have to tell about their money sources and face various

types of question.

5.1. Function of the Department:

The function of the department is to perform the following main function:

Accepting deposit

Opening of account

Cheque book issue

Transfer of account

Closing of account

5.1.1 Accepting deposit:

Deposits are life blood of a commercial bank. Without deposit there are no

accounts can be opened. In Malibagh branch there are various types of

account are offered for the various customers. They are different group.

They are like

Demand deposit account

Time deposit account

Fixed deposit account


24/55

24 | P a g e

Figure: Various types of figure

Demand deposit account

The amount in account are payable in demand so it is called demand

deposit account. The following accounts are under demand depositaccount:

Figure: Depository product

Current Account:

These types of account can be opened by both individual and business

concern. A current account holder can draw cheque on his account for anyamount for any number of times in a day as the balance in his account

permits. When the amount is large than the account holder may be remind

it a few days ago. This account provides no interest. The minimum balance

to be maintained is Tk 2000/-.No new account can be opened with a

cheque.

Depository

product

Sving BankAccount

CurrentBank

Account

Short TermDeposite

FixedDeposite

ReceiptedAccount


25/55

25 | P a g e

Saving Account:

Individual for saving purpose open this type of account. Current interest

rate of this account is 3.50% per annum. A minimum balance of Tk. 1000 isrequired to be maintained in a SB account interest on CB account is

calculated and accrued monthly and credited to the account half yearly

Interest calculation is made for each month on the basis of the lowest

balance at credit of an account in that month. A depositor can withdraw

from his SB account not more than twice a week up to an amount not

exceeding 25% of the balance in the account.

Any Bangladesh National residing home or abroad may open saving

account with UBL.

This account may be opened in single or joint name

The account holder may nominate his nominee in this account.

The nominee can get the balance amount without submitting succession

certificate after the death of account holder.

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 photos of the account holder.

Photo of nominee (if any) duly attested by the account holder.

Photocopy of the 1

st

7 pages of the passport for non-residentBangladeshi national.

Signature in the account opening form/card must be same with the

signature of the passport.


26/55

26 | P a g e

Special Notice Term Deposit (STD)

The deposit in this account is withdrawal on prior notice varying from 7 to

29 days and 30 days or more. The interest is paid on the balance of the

account. Current interest rate is 5.00% per annum.Govt., Semi govt., Autonomous organization and an individual may open

STD account with UBL.

UBL offers attractive/competitive rate of interest in STD Account.

7 days notice required to withdraw big amount.

Opening procedure:

For opening such A/C, application prescribed from along with a set of

specimen signature duly verified by Bangladesh mission abroad or by a

reputable bank of any other person known to the bank, should be obtained

by the brandies. In case of persons, already maintain any F.C A/C or

N.F.C.D. A/C with them, reference to that F.C A/C will serve, the purpose of

introduction, the branch may verify the signature from the specimen

signature and already available with them. Only one such F.C A/C can be

maintained and the balance in the A/C should not exceed $ 30,000/- or

equivalent pound sterling at any one time. The A/C holder is also required

to submit photocopies of passport, visa and work permit/contract. As this is

a current account no interest is paid to the A/c holder.

Time deposit Account:

The amount in this A/C is payable only after stipulated time. The followingA/Cs are under time deposit A/C: Fixed Deposits which are repayable after

the expiry of fixed period and negotiable.

Bearer certificate of deposits (BCD), which are repayable after the expiry of

fixed period but are negotiable. These are not renewable. Non-resident

foreign currency deposits are them deposits maturing after 1 month, 3


27/55

27 | P a g e

months, 6 months and 1 year. This A/Cs can be opened either in US dollar

or pound sterling. No interest is paid in case of premature encashment.

Fixed deposit Account

These are deposit, which are made with the bank for a fixed period

specified in advance. The band need not maintain each reserve against

these deposits and therefore, bank gives high rate of interest on such

deposits. A FDR is issued to the depositor acknowledging receipt of the

sum of money mentioned therein. It also contains the rate of interest and

the date on which the deposit will due for payment.

Interest on Deposits

Particulars rate of interest:

Deposits Interest RateSaving deposits 3.50%

Special Notice Deposits (STD) 5.00%

Fixed Deposits (3 months) 5.00%

Fixed Deposits(6 months)

5.00%

Fixed Deposits (1 year) 5.00%

Fixed Deposits (2 years ) 5.00%

Monthly deposits and payment amount of Uttara bank LTD:


28/55

28 | P a g e

MonthlyInstallmentsize (tk)

Period(Years)

Amountpayableonmaturity(tk)


Period(Years)



Period(Years)


500 2 13192 500 3 20731 500 5 37995

1000 2 26385 1000 3 41461 1000 5 759902000 2 52770 2000 3 82923 2000 5 1519805000 2 131924 5000 3 207307 5000 5 37994910000 2 263849 10000 3 414614 10000 5 75989815000 2 395773 15000 3 621920 15000 5 113984720000 2 527698 20000 3 829227 20000 5 151979625000 2 659622 25000 3 1036534 25000 5 189974530000 2 791547 30000 3 1243841 30000 5 2279695

5.2. Opening of Account:

It includes two steps. They are

1. Account opening procedure.

2. Classification of customer.

5.2.1. Account Opening Procedure:

Documents needed for each accounts separately:

(Current/Savings accounts)

Current Account

1. Limited Company

Certificate of Incorporation.

Certificate of Commencement of business.

Memorandum of association.

Article of association.

Power of attorney.


29/55

29 | P a g e

Resolution of the board of directors authorizing opening of an

account.

Societies/Club/Association.

Other than above mentioned common documents resolution of who willoperates the account must be noted.

2. Proprietorship firm

Name of the authorized persons, designation, specimen, signature

card,

trade license

Photo copy of national ID card/passport/chairman certificate.

An existing current account holders identification

3. Partnership Firm

Account must be opened in the name of the firm.

The form should describe the names and address of the entire

partner. Trade license from City Corporation is needed.

Partnership deed.

Letter of authority is achieving.

Account Opening procedure:

Account opening form duly filled up. Specimen signature cards in duplicate.

Certified copy of bylaws, rules and regulations in case of

corporations and autonomous body are to be obtained.

Certified copy of the resolutions-authorizing opening of an account.


30/55

30 | P a g e

List of members of the executive committee and list of directors are

to be obtained.

Partnership deed, in case of partnership.

Certificate of incorporation in case of both public and private limited

companies.Memorandum/Articles of Associations, Resolution of the Board of

Directors authorizing opening of the account for limited companies

and corporation.

5.2.2 CLASSIFICATION OF CUSTOMER:

Itincludes the following things:

Individual (personal)

Proprietorship (Sole trades)

Partnership firms (Registered or unregistered)

Joint stock companies (Private limited companies/public ltd.)

Public sector corporations

Municipalities/ Municipal/ Corporations/ Local Bodies etc.

Clubs / Societies / Associations / Schools / Colleges / Universities

etc.

Executors / Administrations Trustees

Illiterate Persons

Constituted Attorney

Wage Earners.

5.3. Issue of Cheque Book:

According to Section 60f Negotiable Instruments Act, 1881, a cheque is A

Bill of Exchange drawn on a specified banker and not expressed to be

payable otherwise than on demand. To facilitate withdrawals and

payments to third parties by the customer, UBL provides a cheque book to

the customer Cheque book contains 10 leaves for savings account while


31/55

31 | P a g e

for current account is 25 or 50 or even 100 leaves. A Cheque book issuing

register is maintained in this regard. This register contains the Cheque

book number, leaf number, issuing date.

5.3.1. 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 register

book

Officer also enters the customer name and the account number in

the same register

Account number is written down on the face of the cheque book.

The name of the customer is also written down on the face of

cheque book.

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 issueregister.

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

5.3.2. Issue of new cheque book:

All the procedure for issuing a new cheque book for old account is same

as the procedure of new account. Only differences are those:

Account holders have to submit the requisition slip of the oild

cheque book with date, signature and his/her address.


32/55

32 | P a g e

Computer posting is then given to the requisition slip to know the

position of account and to know how many leaves still not used.

The number of the new cheque book is entered on the back of yhe

old requisition slip and is signed by officer.

5.3.3. When the cheque book is lost:

If the cheque book is lost, the customer has to furnish a guarantee

indemnifying by an application to the bank. After fulfilling this, a new

cheque book is issued. Seldom customers are allowed to use loose cheque

if the customer want to draw money without presenting previously issuedcheque. A separate register is maintained in this regard. But this is highly

discouraged in UBL. In a few days ago when the account holder will busy

than he send a representative, the banker issued cheque and provide a

acknowledgement with the cheque book. When the acknowledgement is

return by the account holder by the signature then he can draw the cheque.

5.4. Transfer of Account:

The customer submits an application mentioning the name of the

branch to which he wants the account to be transferred.

His signature card , advice of new account and all relevant document

are sent to that branch trough registered post.

The balance standing at credit in customers account is sent to the

other branch trough Inter Branch Credit advice(IBCA).

Not exchange should be charged on such transfer

Attention is also given in this connection

5.5. Closing of Account:


33/55

33 | P a g e

The following circumstances are usually considered in case of closing an

account or justifying the stoppage of the operation of an account:

Notice given by the customer himself or the customer is desirous to

close the account Death of the customer

Customers insanity and insolvency.

If the branch finds that the account is inoperative for a long time.

If Garnishee Order is issued by the court of law on the bank branch

A customer can close out his A/C at any time by submitting an application

to the branch. Upon the request of a customer an account, the following

procedure is followed by a banker:

1. The customer should be asked to draw the final cheque for the

amount standing to the credit of his a/c less the amount of closing

and other incidental charges and surrender the unused cheque

leaves.

2. The a/c should be debited for the account closing charges etc. and

an authorized officer of the bank should destroy unused cheque

leaves.3. In case of joint account the applicant for closing the a/c is to be

signed by all the joint holders even if the a/c is prepared by either of

them

4. The last cheque for withdrawal of the available balance in the a/c is

to be signed by all the joint holders.

6. Local Remittance Department

UBL has its branches spread throughout the country and therefore, it

serves as best mediums for remittance of funds from one place to

another. This service is available to both customers and non-customers of

the bank. The department, which provides the facility, is known as local

remittance department


34/55

34 | P a g e

6.1. Functions of the Local Remittance Department:

The following are the main functions performed by the credit department:

Issuing & payment of Demand Draft.

All related correspondence with other Branches &Banks.

Compliance of audit & Inspection.

Balance of D.D. payable & D.D. paid with advice.

Attached to Sanchaya Patra and wage Earners Development Bonds.

Payment of Incoming TT.

Issuing, encashment of pay order and maintenance of record and

proof sheet.

Issuing and encashment of all kinds of Sanchaya Patras and Wage

Earners Development Branches.

All related statements & correspondences with Bangladesh Bank &

other Branches.

Issuance of Local Drafts.

Issuing and encashment of BCD.

Issuing of outgoing TT.

Issuance of Local Drafts.

Issuance of T.T. ICA. IBCA & IBDA.

6.2Transaction Types:

Collection of cheque

Up to Tk. 25000 @ .15% minimum Tk.10.

Above Tk.25, 000 -1, 00,000 @ .10% minimum Tk.50.

Above 1, 00,000 -5, 00,000 @ .10% minimum Tk.150. Above 5, 00,000 @ .05%, minimum Tk.600maximum 1,200.

Name of Transaction Code

Bank Draft 1


35/55

35 | P a g e

Mail Transfer (M.T) 3

T.T 4

B.Cs 6

S.Cs 7

Cash Remittances 8Sundries 9

Head Office Transaction 10

Foreign Exchange Transaction 12

Reversing & Cancellation 27

Bank Charge for DD Issuing

@ .15% minimum Tk.25.

Cancellation of DD

Up to 1,000------------------------Tk.25.

Above 1,000-----------------------Tk.40.

Payment Order

Up to Tk. 1,000----------------------Tk.10.

1,000-1, 00,000----------------------Tk.25.

1, 00,000-5,00,000------------------Tk.50.

Above Tk.5, 00,000-----------------Tk.100.

Cancellation of Pay Order

Up toTk.500-----------Tk.10. Above Tk.500---------Tk.25.

6.3. Remittance of Fund:


36/55

36 | P a g e

Any one of the following methods may make remittance of funds one place

to another.

Figure: Ways of remittance of fund

6.3.1. Telegraphic Transfer:

It is an order from the issuing branch to the Drawee Bank/Branch for

payment of a certain sum of money to the beneficiary. Telex/Telegram

sends the payment instruction and funds are paid to the beneficiary through

his account maintained with the Drawee branch or through a pay order if no

a/c is maintained with the Drawee branch.

T.T Issue Process:

TelegraphicTransfer (T.T)

Demand Draft(D.D)

Pay Order (P.O)

Mail Transfer(M.T)


37/55

37 | P a g e

The applicant fill up the relevant part of the prescribed application

from in triplicate duly signs the same and gives it to the Remittance

Department.

Remittance Department will fill up the commission part meant for

Banks use and request the Applicant to deposit necessary cash orcheck at the Tellers counter.

The Teller after processing the Application form, Cash or check will

validate the Application form. The first copy is treated as Debit Ticket

while the second copy is treated as Credit Ticket and sent to

Remittance Department for further processing. The third copy is

handed over to the Applicant as customers copy.

Remittance Department will prepare the Telex/Telegram in

appropriate form, sign it and send it to the telex Operator / DispatchDepartment for transmission of the message.

Remittance Department will prepare the necessary advice.

Debit Advice is sent to the client if clients a/c is debited for the

amount of T.T.

Debit Ticket is used to debit the clients a/c if necessary.

T.T Confirmation Advice is sent to the Drawee Branch.

Credit Ticket (2ndcopy of the Application Form) is used to credit the

UBL General Accounts.

Accounting Entry:

Dr. Cash/clients A/C

Cr.UBL General A/C

Cr. CommunicationCr. Commission

Payment of T.Ts:


38/55

38 | P a g e

On receipt of T.T payment the Drawee branch passes Instructions the

following entries if the T.T is found to be correct on verification of Test

Number.

i. Dr. UBL General a/c

Cr. Remittance Awaiting Disposal- T.T payable a/c

ii. Dr. Remittances Awaiting Disposal-T.T payable a/c

Cr. Clients account /P.O. A/C.

In case the beneficiary does not maintain any a/c with the Drawee branch a

P.O is issued in favor of the payee and sent to his banker/local address as

the case may be.

Every branch maintains a prescribed T.T. Payable Register. All the

Particulars of T.Ts are to be properly recorded in this Register duly

authenticated. A separate type of T.T confirmatory

advice/confirmation copy of Telegram from the Issuing branch, the

particulars of the T.T are verified with reference to particulars already

recorded in the T.T payable Register.

The Confirmatory advices are kept attached with the relative Ticket

No further responding entry is required to be passed on receipt of such

confirmation copy. On payment of T.T the particulars are to be incorporated

in the Extracts of Responding Debit entries as usual and sent to HORC.

6.3.2. Demand Draft (D.D):

Local Draft is an instrument containing an order of the Issuingbranch upon

another branch known as drawee branch, for payment of a certain sum of

money to the payee or to his order on demand by the beneficiary

presenting the draft itself.

Figure: Flowchart for a DD


39/55

39 | P a g e

6.3.3. Pay Order (P.O):

This is an instrument issued by the branch of a bank for enabling the

customer to pay certain amount of money to the order of certain

person/firm/organization/office within the same clearing house area of the

pay order issuing branch.

Pay Order issue Process:

For issuing a Pay Order the client is to submit an application to the

Remittance Department in the prescribed form (in triplicate) properly filled

up and duly signed by Applicant . The processing of the pay order

Application form, deposit of cash/cheque at the tellers counter and finally

issuing an order etc, are similar to those of processing of D.D Application.

As in case of D.D each branch should use a running control serial number

of their own for issuance of a pay order. This control serial number shouldbe introduced at the beginning of each year, which will continue till the end

of the year.

A fresh number should be introduced at the beginning of the next calendar

year and so on.

Pay Order Charges:

For issuing each Pay Order commission at the rate prescribed by Head

Office is realized from the client and credited to Income A/C as usual.


40/55

40 | P a g e

Entries:

Dr. Tellers Cash /Clients A/C -------------Debit

Cr. Pay Order A/C ------------------------------Credit

Cr. Commission A/C --------------------------------Credit

6.3.4. Mail transfer (MT):

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

preferably by crediting his account.

7. Cash Section:

The cash section with all types of negotiable instrument, cash and other

instrument and treated as a sensitive section of the bank. It includes the

vault, which is used as the store of case instrument. If the cash stock of

goes beyond this limit the excess cash is then transferred to Bangladesh

Bank. Keys to the room are kept under control of cash officer and branch in

charge. The amount of opening cash balance is entered into a register.After whole days transaction the surplus money remains in the cash

counter is put back in the vault and known as the closing balance. Money is

received and paid in this section.


41/55

41 | P a g e

7.1. 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 saving account and another for

current account.

After filling the required deposit in slip depositor deposits the money.

Officer at the such counter receives the money, count it enter the amount of

money in the scroll register kept at the counter, seal the deposit in slip andsign on it with date.

Then this slip is passed to another officer who enters the scroll number

given by the cash counter in his register along with the amount of the

money, sign the slip and keep the banks part of the slip. Other part is given

to the depositor.

All deposits of saving account are maintained be one officer and other

accounts by another officer

At the end of the day entries of both of these registers are cross checked

with the register kept at the counter to know whether the transaction are

correct or not.

7.2. Cash Payment:

Cash Payment of different instruments is made in the cash section.Procedure of cash payment against cheque is discussed under elaborately.

Cash payment of cheque includes few steps:

First of the entire client comes to the counter with the check and give

it to the officer in charge there. The officer checks whether there are


42/55

42 | P a g e

two signatures on the back of the cheque and checks his balance in

the computer. After that the officer will give it to the cash in charge.

Then the cash in charge verifies the signature from the signature card

and permits the officer in computer to debit the clients account by

giving posting. A posted seal with teller number is given.Then the cheque is givento the teller person and he after checking

everything asks the drawer to give another signature on the back of

the cheque.

If the signature matches with the one given previously then the teller

will make payment keeping the paying cheque with him while writing

the denomination on the back of the cheque.

Cash paid seal is given on the cheque and make entry in the

payment register.

There are few things that shall be scrutinized and checked before making

payments.

i) Name of the drawer

ii) Account number

iii) Specimen signature

iv) The validity of the cheque and make it sure that it is not postdated or undated.

v) The amount in words and figures are same.

7.3. Cash Balance Calculation:

The calculation is done by the officer in charge of cash section and then

manager or authorized officer will check the balance and sign in the cash

balance book. The balance is maintained in the balance book. Opening

balance of current day is the closing balance of the previous day. Total

receive of the current day is added with the opening balance and total

payment is deducted for calculating the closing balance or cash balance.


43/55

43 | P a g e

7.4. 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 & 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.

8. Clearing Department:

According to the Article 37(2) of Bangladesh Bank order, 1972, the banks,which are the member of the clearing house, are called as scheduled

banks. The scheduled banks clear the chouse drawn upon one another

through the clearing house. This is an arrangement by the central bank

where every day the representative of the member banks gathers to clear

the chouse. Banks for credit of the proceeds to the customers accounts

accept chouse and other similar instruments. The bank receives many such

instruments during the day from account holders. Many of these

instruments are drawn payable at other banks. If they were to be presentedat the Drawee Banks to collect the proceeds, it would be necessary ti

employ many messenger for the purpose. Similarly, there would be many

chouse drawn on this messengers of other banks would present bank and

them at the counter. The whole process of collection and payment would

involve considerable labor; delay, risk and expenditure are substantially


44/55

44 | P a g e

reduced, by the representatives of all the banks meeting at a specified

time, for exchanging the instruments and arriving at the net position

regarding receipt or payment. The place where the banks meet and settle

their dues is called the Clearing house.

8.1. Functions of the Department:

The following are the main function s performed by the department:

Pass outward instruments to the clearing house.

Pass inward instruments to respective department.

Return instruments incase of dishonor

Prepare IBCA or IBDA for the respective branch and HO.

8.1.1. Inward Clearing:

When a particular branch receives instrument which drawn on themselves

and sent by other member bank for collection are trated as inward clearing.

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 given

The instrument is sent to clearing for collection.

Miscellaneous creditor a/c.

8.1.2. Outward Clearing:


45/55

45 | P a g e

When a particular branch receives instrument drawn on the other bank with

in clearing zone and those instruments for collection through the clearing

arangement is consider as outward clearing for that particular branch.

Outward Bills for collection (OBC):

Customer deposit, cheque etc for collection attaching with their deposit

receipt. Instrument within range of clearing are collected through local

clearing house but the other which are the outside the clearing range are

collected through OBC mechanism. A customer of UBL principal branch

local office Dhaka is depositing a cheque of Sonali Bank Coxs bazaar.

Now as a collection bank UBL principal branch will perform the following

tasks:

Received seal on deposit slip

SBL 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

Collection bank can collect it either by its branches of by the drawers bank

they will forward the bill then to that articulate branch. OBC number will be

given on the forwarding letter.

8.2. Accounting entries of Clearing Department:

The following entries are given if the cheques are honored,

Customer A/C -------------Debit

UBL General A/C ----------Credit


46/55

46 | P a g e

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 actsas 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)

Customers A/C------------------Debit

UBL General A/C---------------Credit

8.3. Bills & Cheque Collection:

Checks, drafts etc. are drown on bank located outside Clearing house are

sent for collection. Principal Branch collets its clients above-mentioned

instruments from other branches of UBL and branches other than UBL. In

case of outward bills for collection customers account is credited after


47/55

47 | P a g e

finishing the collection processor. And in ward bills customers is debited for

this purpose. So it placed dual role as follows:

i) Collecting Banker

ii) Paying Banker.There is one officer working over desk in this department.

8.4. Functions of the Department:

The following are the main functions performed by the department:

Preparing of Outward & Inward Collection Item.

Inter-Branch Transfer. Batch posting & checking as an when require.

Other works as an when require.

8.5. Applicability of Collection:

Collection is done when:

Paying Bank is located outside Dhaka City:

Collection department of Principal Branch, UBL sends outward

bills for collection (OBC) to the concerned paying bankto get inter

Bank Credit Advice (IBCA) for paying Bank. If the paying Bank

dishonors the instrument, the same is returned to principal Branch

Paying Bank is other branches of UBL situated inside Dhaka City.

Collection Department sends transfer delivery item to other

branches of same bank situated inside Dhaka City. Upon receiving

IBCA customers A/C is credited.


48/55

48 | P a g e

8.6. Daily Task:

The routine tasks of the Account Department are as follows:

Recording the transaction in the cashbook

Recording the transaction in general and subsidiary ledger.

Preparing the daily statement of affairs showing all the assets and

liability of the branch as per general ledger and subsidiary ledger

separately.

Preparing the daily position of the branch comprising of deposit

and cash.

Making payment of all the expences of the branch

Checking all the vouchers are correctyly passed to ensure the

conformity with the Activity Report, if otherwise making it correctly

by calling the respective official to rectify the voucher

Recording the voucher in the Voucher Register.

Packing of the correct voucher and the credit voucher.

Major problems in General banking Activities:

Problem in general banking arises while issuing and responding

different types of D.D, M.T, P.O, T.T,SC, LSC,IBP and D.D.P. due to

different between actual amount and written amount in those botcher.

This problem most repeated occurs in general banking for

misunderstanding of written amount or not consciously read the

amount in words in advice. Another problem is while issuing and responding of M.T, T.T and

same message are sending from different branch. These happen due

not use the seal of message confirmation by telephone. Then it needs

to send several message and much hazards occurs in reconciliation


49/55

49 | P a g e

Another problem occur due to not getting of advice of M.T, T.T,D.D

from different branch and making schedule for reconciliation is not

possible for head office.

Another problem occur in clean cash when so many boucher may

attach with other categories. Most serious problem is that many branch of Uttara bank have not

telephone.

Findings:

In Uttara Bank Ltd. the coordination among lower, mid, and top level

management is very good.

In Uttara Bank Ltd. the prompt decision making by the management

among their own supervision.

In Uttara Bank Ltd. the lagging behind technologically.

Improper record keeping system found by the employers oremployees by Uttara Bank Ltd.

Lack of job rotation. Only a selected number of officers are involved

or engaged in general banking department in Malibagh branch of

UBL. So that in case of emergency other officer cannot handle the

department.

In Uttara bank ltd. There is huge network with correspondent banks

abroad; it means it worked all over Bangladesh as well as the other

country. In Uttara Bank Ltd. The experienced and skilled officers in general

banking department as well as some other department.

There is no record of opening a student file in the branch which is one

of the potential businesses for a bank/branch.

In banking sector this banks well reputation in International arena.


50/55

50 | P a g e

In Uttara Bank Ltd, the increasing demands from the corporate

customers for discount in service charges.

CONCLUSION:

Uttara Bank Ltd. Is the largest non-govt. organization through out or the

region. It is working mass people about aquaculture, social welfare and

income generation of this region.

Leadership style process accomplished half of its organizational activities.

Employees are the lifeblood of organization & leadership style are the way

to motivate & maintain that.

Work mood is associated leadership style in many senses. An appropriate

leadership style can bring the job satisfaction among employees.

Uttara Bank Ltd. Malibagh Branch, Dhaka. It is such non-govt. organization

is highly concerned with those factors of leadership style. They apply an

effective style to implement the organizational objectives. From apply an

effective style to see that effective leadership style bring a great and fruitful

success of the organizations.

RECOMMENDATIONS:

Uttara Bank Ltd. Is the 2ndgeneration bank and providing its service since

many years . Since its establishment it has provided so many banking


51/55

51 | P a g e

services to the people of this country, but need to walk with the concept of

modern banking system. Today the 3rdgeneration banks are providing the

modern banking services such as- internet banking, SMS banking, debit &

credit card facilities, ATMs services, electronic banking, corporate banking,

retail banking, &SME banking etc. whereas Uttara bank are still providingtheir traditional banking service. I think it should go more effectively to the

general people of the country with the concept of modern banking system.

Now a day it is very difficult for any bank or financial institute to run its

operation smoothly because of hard competition. So to survive in the

market it should come out from its traditional concept and provide modern

banking service.


52/55

52 | P a g e


53/55

53 | P a g e


54/55


55/55

Date post:	23-Feb-2018
Category:	Documents
Upload:	-
View:	221 times
Download:	0 times