United Commercial Bank Limited
United Commercial Bank Limited
United Commercial Bank Limited
1.1
Internship program is the systematic gathering, recording and analyzing of data about the subject
that a student goes to learn on the program.
The aim of this Internship program is to connect practical knowledge with theoretical
knowledge. Now the world is a competitive world. So everybody has to be expert in both
practical knowledge and theoretical knowledge.
During my work, I have faced various obstacles. By the grace of Al Mighty Allah and by the help
of some related person, I have overcome those problems successfully.
1.2 Objectives of the Study
The objective of the study is to gather practical knowledge regarding banking system and its
operations. Theoretical classes of BBA provide us theories regarding different subjects whereas
practical orientation gives us the chance to view those systems and their operations. More
precisely we can identify the objectives of this report as follows:
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Observation.
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Website of UCBL.
Export Section.
Financial institutes play an important role for the economic development of any country. The
objective of these institutions is to accumulate the scattered deposit and invest it in an
appropriate manner for economic emancipation.
There are 51 schedule banks (January 2003) operate in Bangladesh. Of them 4 nationalized
commercial banks, 5 specialized banks, 30 private commercial banks and 12 foreign banks. The
number of branches of those banks is 6242. Of which 2511 (40.2%of total) are in urban areas and
rest 3731 (59.8% of total) are in rural areas. But now days all nationalized banks has been shifted
to the private sector.
For proper monitoring the operations of banks, Bangladesh bank introduces problem bank
monitoring Division in addition to CAMEL RATING. To increase the economic activities
Bangladesh bank reduces the bank rate to 6% from 7%.
To increase customer services banks are using various modern techniques like on line banking,
ATM, Money Gram, Credit Card etc.
2.3
3.1
Historical Background
Sponsored by some dynamic and reputed entrepreneurs and eminent industrialists of the country
and also participated by the Government, UCB started its operation in mid 1983 and has since
been able to establish the largest network of 84 branches as on 01.03.2003 among the first
generation
banks
in
the
private
sector.
With its firm commitment to the economic development of the country, the Bank has already
made a distinct mark in the realm of Private Sector Banking through personalized service,
innovative practices, dynamic approach and efficient Management. The Bank, aiming to play a
leading role in the economic activities of the country, is firmly engaged in the development of
trade, commerce and industry through a creative credit policy.
3.2
Mission Statement:
3.3
Setting industry benchmarks of world class standard in delivering customer value through
our comprehensive product range, customer service and all our activities.
Building an exciting team-based working environment that will attract, develop and
retain employees of exceptional ability who help celebrate the success of our business, of
our customers and of national development.
Wants to be leader among banks in Bangladesh and make its indelible mark as an active
partner in regional banking operating beyond the national boundary
Management:
The Bank has in its Management a combination of highly skilled and eminent bankers of the
country of varied experience and expertise successfully led by Mr. M. Shahjahan Bhuiyan, a
dynamic banker, as its Managing Director and well educated young, energetic and dedicated
officers working with missionary zeal for the growth and progress of the institution.
BOARD OF DIRECTORS
Chairman
Mr. Md. Jahangir Alam Khan
Vice Chairman
Mrs. Qamrun Nahar
Director
Mr. Zafor Ahmed Chowdhury
Hajee Younus Ahmed
Mr. M.A. Hasem
Mr. Sabbir Ahmed
Mrs. Monoara Jahangir
Mr. Sharif Zahir
Mr. Kazi Enamul Hoque
Mr. Md. Nayeem Kalam
Mr. Showkat Aziz Russell
Mr. Riyadh Zafar Chowdhury
Mr. Ahmed Arif Billah
Mr. Humayun Kabir Ahmed
Mr. Aziz-Al Mahmood
Mr. Md. Tanvir Khan
Mr. Dulal Abdul Hafiz (Govt. Director)
Kabir
Ahmed
(Member)
Utilize all available resources to develop various plan, policies and procedures in each of the
objective and goal areas.
Synchronized and steady growth of the bank.
Implement plans, poleis and procedures.
Utilize team of professional employees.
Goals:
Develop a plan for offering better customer service.
Develop a realistic deposit mobilization plan.
Develop appropriate lending risk assessment system.
Develop capital plan.
Develop a system to make good advances.
Develop appropriate mgt. structure, system, procedures and approaches.
Develop scientific MIS to monitor banks activities.
Business Objectives:
Ensure 100 % recovery of all advances.
Ensure a satisfied work force.
Make sound loan and investment.
Build up a low cost fund base.
Meet capital adequacy recruitment at all the time.
Focus on fee based income.
Install a scientific MIS to monitor Banks activities.
Adopt an appropriate management technology.
3.7 Banks Strategy :
United commercial bank limited aims at excellence and is committed to explore a new horizon of
banking and providing a wide range of quality products and service.
It is a bank for the common people including businessman and professionals. It intends to serve
with quality at a price competitive to anyone in the financial market. It would constantly keep on
exploring the needs of the clients.
So the United commercial bank limited shall also develop a youthful and exuberant management
team-technology sound and rich in experience. They would work hand in hand with zeal and
enthusiasm to achieve the objective of the bank in the new millennium.
4.2 Scrolling :
Scrolling is not so important. Although few bank maintain scroll system for their own safety. If a
client wants to deposited money in his account he must go to the scroll officer. Scroll officer at
first see the a/c no, name, signature and amount are put in the deposit book properly. After that
scroll officer entry the amount in the scroll registry. Then the serial number put on the deposit
book.
4.3 Account Opening:
The different types of accounts are very commonly in practice:
Current Deposits (CD)
Savings Bank Deposits (SB)
Short term deposits (STD)
Fixed Deposit receipts (FDR)
Monthly saving scheme (MSS)
Cash credit (CC)
Consumer credit scheme (CCS)
Security overdraft (SOD)
Some common requirements and steps that are followed by national bank in general are:
For individual:
Furnishing photographs
Mandate, if necessary
After fulfilling the above formalities, united commercial bank provides the customer a pay-inslip book and a cheque book.
For Partnership / proprietorship Firm:
1. Partners signature
2. Partners name
3. Trade license of all partner
4. Filled out application from stating about the name and address of firm
5. Partnership deed
6. Undertaking/ declaration about the partnership is taken by the bank in a white paper (for
proprietorship firms)
7. Account agreement form.
For Limited Company:
Certified true copy of the Memorandum & Articles of Association of the company.
Certificate from the Registrar of the Joint Stock Companies that the company is entitled
to commence business along with a duly certified photocopy for Banks records:
Extract of Resolution of the Board, General Meeting of the company for opening the
account and authorization for its operation duly certified by the Chairman/ Managing
Director of the company.
.Dr
LBC:
LBC means local bill collection. LBC issue in the local city of the internal bank.
OBC:
OBC means outward bill collection. OBC issue out of the city of the internal bank.
4.5 Clearing:
It is a department which is completely involve with the Bangladesh bank. By collection a cheque
in any other bank through Bangladesh bank its clearing. Every bank gets the cheque from
different bank which is send to the zonal branch of the bank. Zonal branch make a sheet of this
cheque and put the total amount on the cheque. The entire related officer is meeting in the
clearing house in Bangladesh bank. And every bank submits their cheque list by the floppy disk
to the Bangladesh bank. The officer are distributed the cheque to the related bank officer. Here
own bank is getting the cheque which is classifying (cheque, pay order, DD) by branch and total
amount of the cheque are putted in the back side of the cheque. Here end of the morning session.
At the evening session the officer are distributed the disowner cheque and then own bank get
some disowner cheque which is distribute to the branch representative.
Causes of disowner a cheque:
Insufficient fund.
Signature of related officer.
Cheque submitted by wrong way.
By an essential notice.
One cheque is going to another bank.
To submit wrong account number.
Show the wrong date.
4.6 Accounts Department:
The accounts department is the most delicate and the most confidential department in a bank.
The main task of this department is to record all kind of transaction of the branch, confirming
accuracy, preparing statement etc. under the computerized banking system, today the clean cash
statement and the supplementary statement is in party ledger vouchers are printed of the
computer. Accountants function can be divided into two parts:
Daily functions
Periodical functions
Posting of various transactions in the computer that occurs through out the day.
(B) The periodical function of the account department is to prepare different types of statement
for its own branch, head office, Bangladesh bank. The statements being:
Daily position
General ledger.
N Bank Guarantee / Bid Bond: Generally issued for business/ economic purpose for
participating in the local /industrial tenders.
N SOD (General): generally allowed to the traders for business promotion and economic
activities.
N Consumers Credit Scheme: Loans allowed to service people for purchasing
domestic/household items repayable on monthly installment basis.
5.2 EXPORT LOAN:
The Bank allows credits to the exporters to help performing their exports under the following
categories:
N PC (Packing Credit): Allowed to the exporter for packing the goods before shipment
N Back-to-Back LC: Import of Raw martial through opening back-toof Export L/Cs. This facility is extended to garment factorie.
X Pre-shipment advantages.
X Negotiating of foreign bills.
X Exports guaranties
X Purchase of foreign bills.
X Advance against bills for collection.
X Advising / conforming setters (latter of credit).
X Advance for differed payments exports.
Imports:
X Bills for collection
X Advance bills.
X Opening of letter of credit (L/C)
X Import loan & guarantees.
Remittances:
X Issue of DD, TT, MT, etc.
X Payment of DD, TT, MT etc.
X Sale and enhancement of foreign currency notes.
X Issue and enhancement of travelers cheque.
X Non-resident accounts.
Bill of lading:
A bill of lading is a document that is usually stipulated in a credit when the goods are dispatched
by sea. It is evidence of a contract of carriage, is a receipt for the goods and is a document of title
to the goods. It also constituted a document that is, or may be, needed to support an insurance
claim.
The details on the bill of lading should include:
8 A description of the goods in general terms.
Plays a vital note in the development process of an economy. With the earning we meet out
import bills.
The following types of discrepancies may be noted while the negotiation bank examines the
documents:
6.5 Back To back letter of credit:
A back to back letter of credit is a new credit. It is different from the original credit based on
which bank under takes the risk under the back to back credit. In this case, the banks main
security is original credit. Te original credit (selling credit) is separate instruments in dependent
of each other and in no way legally connected, although they both form part of the same business
operation.
In UCBL papers / documents required for submission for opening of back to back L/C:
Master L/C
Mail transfer(MT)
Telegraphic transfer(TT)
Outward remittance:
Remittance which is made from our country to abroad is called outward remittance.
Mode of outward remittance:
Foreign mail transfer (FMT)
Foreign telegraphic transfer(FTT)
Travelers cheque (TC)
Foreign currency notes
Foreign demand draft (FDD).
Present limit of outward remittance fixed by Bangladesh bank:
1. Travel
2. Education
3. Seminar/ workshop/ conference
4. Medical treatment
5. Family maintenance
6. Dividend /Gain of foreign companies/ shareholders
7. Hajj
There is no customer complains desk for this reason it is sometimes occurs as an irritate
matter.
Some banking operation are not come to change at all, which very painful for customer.
Internal conflict within the employees, which is not good sign for development of UCBL.
7.2 Recommendations:
United Commercial Bank Ltd is an established privatized bank in our country. My some
recommendation about it operations are:
I Introduction of such services would be an upgrade of facility to the customer.
I To arrange more employee for reducing the pressure.
I UCBL should be made advertisement on TV so that every initiative of the bank can go at the
door of customers.
I Training programme should be taken more seriously.
I It facility are very important to faster the activities.
I Try to remove any conflict within the employees as early as possible.
7.3 Concluding Remarks:
Private commercial banks are paying a vita role in the development of our economy. But Govt.
and Bangladesh bank play a crucial role to the private commercial banks through imposition of
deposit restriction, lending role or other operations. In recent years of banking business, united
commercial bank Limited has shown better performance comparing with other first generation
banks.
It was great pleaser for me to do my internship program in esteemed organization like UCBL. I
think it provides me a wide range of scope to observe the operation of bank.
Overall, the bank must make appositive attempt to be more outward looking in there goals and
aware of what is happening. I hope, in spite of my all limitations, this experience of sharing
works with such working environment will help me a lot in professional life.
7.4 References:
Annual reports2004& 2005 of UCBL.
Website of UCBL (www.UCBL.com).
Financial statement of 2007.
The Daily Star (Today business)
7.5 Bibliography
Annual reports2001& 2002 of UCBL.
Website of UCBL (www.UCBL.com).
Report on foreign exchange mechanism of UCBL by Mohammed Nasir Uddin, post graduate
student of Dhaka University.
A text book on foreign exchange By L.R. chowdhury.
Financial statement of 2003.