Professional Documents
Culture Documents
ON
INTERNSHIP REPORT
ON
Submitted
By:
Ivi Das
ID No: 111-RJ-10-11
BBA 10th Batch
Southern University Bangladesh
I have pleasure to certify that the Report entitled Loan and Advance of Uttara Bank Ltd,
submitted by Ivi Das, ID No:111-RJ-10-11 , Student of BBA program, Southern University
Bangladesh Is the candidates own achievement and is not a conjoint work.
I also certify that I have gone through the draft Report thoroughly and found it satisfactory for
submission to the Department of Accounting in fulfillment of the requirements for the degree of
Bachelor of Business Administration (BBA)
-----------------------------------------------------
LETTER OF TRANSMITTAL
Thanking you.
Sincerely Yours,
---------------------------------Ivi Das
ID No: 111-RJ-10-11
BBA 10th Batch
Southern University Bangladesh
ACKNOWLEDGEMENT
To perform internship program successfully and report writing on it is not an easy task. It mainly
requires help and co-operation from the respective person. At the time of internship, I also felt
such and obtained cordially. So at the time of writing this report I am remembering those kind
hearted person with best regard.
I would like to give my heartiest gratitude to our Pro. VC issuing to forward the letter to Uttara
Bank Limited, by which I was able to begin my internship.
Then I would like to express my gratitude to my advisor Prf. Taposh Kumar Neogy
, for his cordial help, advice and proper guideline that inspired me to perform my duty properly.
My pleasure turns blooming to offer thanks to Mr. Md. Rezaul Islam, DGM & Head of Branch,
Uttara Bank Ltd., Uttara Branch for allowing me to show my practicability in an organizational
area under his supervision. I like to convey something more than thanks and usual gratitude to
Mr. Md. Shalauddin Dhali, Manager Operation. I am very greatful to Mr. Md. Yunus Khan,
Principal Officer & Foreign Exchange In-charge.; Mr. Pravir Kumer Mitra, OG-II (General &
Remittance); Mrs. Irin Sultana, P.O; Mr. Md. Abdus Sobahan, Senior Officer; Mr. Zishan
Ahmed, A/O (Gen.); Mrs. Riana Rahman, A/O (Gen.); and Mr. Sayed Mohasin, Assistant
Officer (Cash) for providing all information relevant to my study. Their delightful co-operation,
benevolent patronage, intention to make other knowledgeable helped me to prepare this report.
Finally, I would like to extend my deepest thanks to my parents and other family members.
Without their co-operation I would not able to complete my BBA program.
Executive Summary
Banking sector is playing an important role into our national economy. Lots of banks are
involved in this sector. They contribute highly to the GDP. The main motive of bank is giving
services to the people and gain profit from that. Banks are collecting money from on party (as a
deposit) lending them to another party. By that procedure they are mobilizing the money and
help the country to develop.
I have completed my internship in Uttara branch of Uttara Bank Limited. My internship report is
on Loan & Advanced of Uttara Bank Limited. I have worked in several departments like, Loanadvance and gain some knowledge which will help me in my future life.
Banking system of Bangladesh has gone through three phases of development Nationalization,
Privatization and lastly Financial Sector Reform. Uttara Bank Limited (UBL) introduced its
activities named as Eastern banking corporation limited in the year of January 28 th,1965. After
1972 the bank is introduced as a nationalized bank. Uttara Bank Limited was formed as a private
bank in 1983. The Uttara Bank Limited was incorporated as a banking company on June 29 th,
1983 and obtained business commencement certificate on August 21 st,1983. The Bank floated its
shares in the year 1984. Now Uttara Bank Limited operates 211 branches around the country.
The bank has more than 633 foreign correspondents worldwide. Total number of employee is
about 3562. The bank is listed in the Dhaka stock exchange and Chittagong stock exchange
limited as a publicly quoted company for trading of its shares. Till the year of 2012, total asset is
TK 81,451,822,803 and total capital is TK 7,920,588,892.
The practical activities of different desks what I have done is outlined in this Report. Various
rules and regulations, policies and procedures relating to different activities have also been
enumerated here.
Though foreign remittance is one of the major parts of banks income but the loans and advances
and other loan schemes play a vital role in success of Uttara Bank Ltd. Uttara Bank Ltd. has
offered the clients deposit, loan, remittance service and the like.
From 1983 to 2012, it has made strong initiative in banking sector. It can be one of the best
private banks in Bangladesh, if it matches the expectation of the clients through the best banking
services.
CONTENTS
CHAPTER-ONE: INTRODUCTION
1.01. Background of the study
1.02. Objective of the study
1.03. Scope of the study
1.04. Limitation of the study
1.05. Methodology Used
1.06. Sources of Information
1.07. Data Collecting Method
1.08. Reliability of collecting Data
1.09. Model Used
CHAPTER-TWO: OVERVIEW OF BANKING SYSTEM
2.01. Beginning of Banking
2.02. Banking History of Bangladesh
2.03. Number and Types of Banks Operating in Bangladesh
2.04. Banking Laws and Practices in Bangladesh
CHAPTER-THREE: OVERVIEW OF UTTARA BANK LTD.
3.01. Historical Background of UBL
3.02. Vision, Mission, Goals & Objectives of UBL
3.03. Organization Structure of UBL
3.04. Performance of UBL
3.05. Capital
3.06. Management Hierarchy of UBL
CHAPTER-FOUR: Loan & Advances of UBL
4.01. Loan and Advances
4.02. Loan and Advances of UBL
4.03. Types of Loan of UBL
4.04. Cash Credit (Hypothecation)
v
Chapter
CHAPTER 1: INTRODUCTION
I have tried my best to use this opportunity to enrich my knowledge on banking system. After
observing thoroughly, I have prepared this report on the basis of my findings and observation
relating to the topic.
To Know the Foreign exchange activities of Uttara Bank Ltd at Uttara Branch.
b) TIME CONSTRAINT:
It is something like impossible to cover the entire Foreign Exchange banking and
performance phenomena exploiting a three months time period while an employee or an
officer is awarded with one or two year probationary period to do his or her particular job.
c) COMPARISON STATUS:
I have had no opportunity to compare the Foreign Exchange banking system of the Uttara
Bank Ltd. with that of other contemporary and common size banks. It was mainly because of
the shortage of time and Internship nature.
In spite of all the drawbacks faced, everything has been managed well at the end. I believe
the report is a quality report on Foreign Exchange Banking of Uttara Bank Ltd.
SOURCE OF
DATA
Primary Sources
Secondary sources
Chapter
SECTORAL FOCUS
The primary function of the credit system throughout the 1970s was to finance trade and the
public sector, which together absorbed 75 percent of total advances. The government's
encouragement during the late 1970s and early 1980s of agricultural development and private
industry brought changes in lending strategies. Managed by the Bangladesh Krishi Bank, a
specialized agricultural banking institution, lending to farmers and fishermen dramatically
expanded. The number of rural bank branches doubled between 1977 and 1985, to more than
3,330.
IMPROVEMENT
Denationalization and private industrial growth led the Bangladesh Bank and the World Bank
to focus their lending on the emerging private manufacturing sector. Scheduled bank
advances to private agriculture, as a percentage of sectoral GDP, rose from 2 percent in FY
1979 to 11 percent in FY 1987, while advances to private manufacturing rose from 13 percent
to 53 percent.
PROBLEMS
The transformation of finance priorities has brought with it problems in administration. No
sound project-appraisal system was in place to identify viable borrowers and projects.
Lending institutions did not have adequate autonomy to choose borrowers and projects and
were often instructed by the political authorities. In addition, the incentive system for the
banks stressed disbursements rather than recoveries, and the accounting and debt collection
systems were inadequate to deal with the problems of loan recovery. It became more common
for borrowers to default on loans than to repay them; the lending system was simply
disbursing grant assistance to private individuals who qualified for loans more for political
than for economic reasons. The rate of recovery on agricultural loans was only 27 percent in
FY 1986, and the rate on industrial loans was even worse.
The problem of credit recovery remained a threat to monetary stability, responsible for
serious resource misallocation and harsh inequities. Although the government had begun
effective measures to improve financial discipline, the draconian contraction of credit
availability contained the risk of inadvertently discouraging new economic activity.
OVERCOME
As a result of these poor showing, major donors applied pressure to induce the government
and banks to take firmer action to strengthen internal bank management and credit discipline.
As a consequence, recovery rates began to improve in 1987. The National Commission on
Money, Credit, and Banking recommended broad structural changes in Bangladesh's system
of financial intermediation early in 1987, many of which were built into a three-year
compensatory financing facility signed by Bangladesh with the IMF in February 1987.
Foreign exchange reserves at the end of FY 1986 were US$476 million, equivalent to slightly
more than 2 months worth of imports. This represented a 20-percent increase of reserves over
the previous year, largely the result of higher remittances by Bangladeshi workers abroad.
The country also reduced imports by about 10 percent to US$2.4 billion. Because of
Bangladesh's status as a least developed country receiving concession loans, private creditors
accounted for only about 6 percent of outstanding public debt. The external public debt was
US$6.4 billion, and annual debt service payments were US$467 million at the end of FY
1986.
Other Acts related to documentation of loans and advances, law of insurance relating
to goods etc.
Chapter
CHAPTER 3: OVERVIEW OF
UTTARA BANK LTD.
3.1.BACKGROUND OF UBL
Uttara bank Limited 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 ensure efficient service to clients. 211 branches at home and
633 affiliates worldwide create networking and reach capability. Uttara bank Limited is a bank
that serves both clients and country.
It operates through 211 fully computerized branches ensuring best possible and
fastest service to its valued clients.
The bank is headed by the Managing Director who is the Chief Executive Officer.
Uttara bank Limited was initially introduced as eastern banking Corporation in the year of
1965. Its head office was situated in Dhaka. In the year of 1972 the bank was introduced as a
nationalized bank (Order of 1972) named as Uttara Bank Limited. After that it was
functioning its activities as a nationalized bank like other six nationalized bank of
Bangladesh. As a part of government policy the bank was functioning its activities and
contributes in the national economy. In the year of 1983-1984 the bank was privatized. In the
regard Uttara Bank Limited was formed as a private bank in 1983. Since then the bank has
been taking various steps that are very much effective in the context of the economy of
Bangladesh. Than the bank has taken significant steps and contributed highly in the national
economy. The Authorized Capital of the Bank as of 2012 is Tk. 5,000 million and the Paid-up
Capital is Tk. 2,396 million.
According to the rules and regulation of Bangladesh bank, Uttara Bank Limited has taken all
kinds of commercial Banking activities and made itself as a successful commercial bank of
Bangladesh. The main motive is to capture the competitive environment in banking sector
and gain profit.
According to the year of 2012 the bank has total capital is TK. 792.06 crore by combining
the entire brance (240 Branch). Total asset was TK. 8145.18 crore. In the year of 2012 the
banks profit after tax provision was about Tk. 155.19 crore which about Tk. 110.52 crore in
2011. The growth rate of profit was about 40% net income per share is Tk. 6.48
The Bank provides a broad range of financial services to its customers and corporate clients.
The Board of Directors consists of eminent personalities from the realm of commerce and
industries of the country. The bank has set up a new standard in financing in the industrial
trade and foreign exchange business. Its various deposits and credit products have also
attracted the clients both corporate and individuals who feel comfort in doing business with
the bank.
To be leading commercial bank in the country & contribute maximum to the welfare
for the people of the country.
Prime objective to deliver a quality that demonstrates a true reflection of our vision.
Excellence in Banking.
MISSION STATEMENT
We shall be the forefront of national economic development by:
GOALS
Short Term Goal: Increase financial services day by day. Earn satisfactory profit by
giving services to the customer.
Long Term Goal: Maximize the wealth of shareholders and want to be a leading
bank in the banking sector of Bangladesh.
OBJECTIVES
Strategic objectives
Financial objectives
Chairman
Vice-Chairman
Managing Director
Directors
Executive Committee:
Chairman
Vice-Chairman
Directors
3.5. CAPITAL
The Authorized Capital of the Bank was TK. 5,000.00 million of 500,000,000 Ordinary
Shares of TK. 10 each as of December 31, 2012. Issued, Subscribed and Paid-up Capital of
the Bank was TK. 1,597.31 million of 159,731,840 Ordinary Shares of TK. 10 each and TK.
798.66 million of 79,865,920 Ordinary Share of TK. 10 each issued as bonus shares and
listed both in Dhaka and Chittagong Stock Exchanges. The total equity of shareholders of the
Bank at the end of the year 2012 stood at TK. 8,610.8 million
Chapter
CHAPTER 4:
LOAN & ADVANCE
OF
UTTARA BANK LIMITED
Photographs of borrower.
PURPOSE
Interest: 14.00% per annum with yearly rest subject to change that may be made by
the Bank from time to time.
Processing Fees: @TK 1000.00 (Taka One Thousand) only per lac to be realized
before processing of loan.
Processing fee to be refunded deducting TK.5oo.00 (Taka Five Hundred) only as
service
Cost of Application form & Prospectus: TK 200.00 (Taka Two Hundred) only.
If loan installments are regularly & timely paid without any default, the borrower will
be allowed incentive at the rate of 5% of the total interest charged which will be
refunded on full adjustment of the account.
REPAYMENT PERIOD
The loan is to be repaid by equal by monthly installments including interest
maximum within 8 (Eight) years for loan above TK 5.00 lac (Taka Five Lac)
only.
Repayment will start after 3 (Three) months of availing 1st installment of the
loan.
Loan installments will have to be paid within 10 th bay of every month. If any
installment is not paid within 10th day of the month, the borrower will be
treated as defaulter and penal interest @ 2% per month will be charged on the
defaulted amount.
SECURITY
Registered Mortgage of the property where against loan is to be availed by
deposit of original Title Deed with chain of documents.
Registered Irrecoverable General Power of Attorney empowering the Bank to
sell the mortgaged property as and when required.
An undertaking by the borrower in banks prescribed form to pay monthly
installments regularly in time.
The following papers will have to be submitted while applying for loan:
Application in prescribed form duly filled in all the columns and signed by the
applicant.
Personal Net Worth statement of the client.
Lawyer's opinion on the documents of the properties.
CREDIT CEILING
Maximum loan under the scheme are being allowed ranging from TK. 7.50 lac (Taka
Seven Lac and Fifty Thousand) only to TK. 25.00 lac (Taka Twenty Five Lac) only
categorizing on area basis as under for any individual excluding business, developer
for repair and / or renovation works commensuration the monthly income.
Sl .no
Area
Maximum Ceiling
O1
Branches of Dhaka-Chittagong
Metropolitan areas, Tongi- SavarNarayanangonj Pourasava areas,
02
03
1.
Tk.25.00
Twenty Five Lac) only
lac
(Taka
Purpose of Lending
More emphasis is to be given on the applicants business potentiality and feasibility.
While appraising proposals, study is to be made on the following issues:
After thorough examination of these issues and when satisfied, loan proposal is to be
processed.
End-use Supervision
Bank is to ensured-use of the fund lent so that fund is not diverted else where. The
following steps are to be taken in order to stop diversion of fund:
Watch on CustomersAccount
Branch officials are to keep watch on each loan account.
Any symptom irregularity in the account is to be monitored very closely.
Special care is to be taken where operation of the account (turnover)is minimum
and also where the balance in the account remains near the drawing limit.
It is to be ensured that no window dressing is there in the account like depositing
money on a particular day and taking it out the same day or the following day
keeping the balance stationary.
The Branches, Zonal Offices, Departments of Head Office have to comply the instructions
meticulously in addition to all other Instructions. Policies &Guidelines under the purview of
laws ,rules and regulations on credit risk management.
ILC issuing bank, the genuineness of the said acceptance letter by relationship
Manager/ second Officer/ Dealing officer (not bellow Principal Officer) with
authorized signature to be counter signed by the branch incumbent.
The branches must not purchase Bill against ILC opened by any of our Bank
branches. In case of any need for purchasing against ILC of our bank, prior
permission from Head Office is to be obtained.
The loans under IBP will be allowed by the concerned Branch Manager as per his
above discretionary power. The loans falling beyond his discretionary power will be
allowed only on sanction from the concerned Zonal Head or Head Office as the case
may by.
In case the liability against any IBP is not adjusted even within 30 days after due date
of payment, the matter shall be referred to Head Office, International Division giving
full particulars of bills/LCs for taking up the issue by them for settlement.
The following charges and interest are to be realized:
a. Handing Charge: 0.25% of bill value with minimum TK.25.00 and maximum
TK.2000.00
b. Rate of interest: 13.00% per annum with quarterly rest subject to change that
may be made by the bank from time to time.
The following papers and change documents are to be obtained/ executed by the party
before allowing IBP.
a. Loan application ( as per format in annexure 'A')
b. Single/ Double Party DP note (AS applicable)
c. DP Note delivery Letter (where guarantor exists)
d. Letter of continuity
e. Revival Letter Form-I
f. Revival Letter Form-II (where guarantor exists)
All concerned must comply the instructions of this circular meticulously while granting credit
facility against IBP.
(M.A Matin)
Deputy Managing Director
Distribution
The Managing Director's Secretariat, Uttara Bank Limited, Head Office, Dhaka
The Addl. Managing Director's Secretariat, Uttara Bank Limited, Head Office, Dhaka
The Deputy Managing Directors Secretariat, Uttara Bank Limited, Head Office,
Dhaka
The Executive General Managing' Secretariat, Uttara Bank Limited, Head Office,
Dhaka
The Divisional/ Department Heads, Uttara Bank Limited, Head Office, Dhaka
The Principal, Uttara Bank Limimed, Training Institute, Dhaka
All Zonal Heads, Uttara Bank Limited, Bangladesh
All Branch Managers, Uttara Bank Limited.Bangladesh.
v
Bank management may include any other branch/branches for lease financing as and when
required .We shall offer lease finance on lease rental basis for acquisition of the following
article
a) Capital machinery for BMRE purpose.
v
b)
c)
d)
e)
f)
g)
Bank will extend lease facility against brand new machinery / equipment & new /
reconditioned vehicle.
The date of Lease Execution is the date on which the lessee takes delivery of the Leased
item. An amended Lease Agreement is to be executed between the bank and the client
reflecting the actual acquisition cost .At the same time the lessee will issue the certificate of
acceptance of the lease item(s).
The Lessee will pay the 1ST month lease rental, Insurance Premium of the 1 ST lease year as
well as any other charges to the bank on the date of execution either in cash or through Pay
Order. The Lessee will thus pay the monthly rental starting from the date of execution of the
amended Lease agreement till the expiry of the Lease period /term though advances cheques.
Acquisition Cost
The acquisition cost of an item shall be the purchase price ,IDCP and all other incidental
charges and financial expenses incurred by the bank .
Term/Terms of Lease
Terms of Lease may be for a period of maximum 5(Five) years in case of capital
machinery, equipments or medical instruments and 4(Four) years in case of
automobiles. The term of lease must not exceed the estimated economic life of the
Leased asset The Lease agreement cannot be cancelled unilaterally during the Lease
period under normal circumstances.
Grace Period
Incase of local purchase: Maximum 4(Four) weeks from the date of delivery
of the equipment.
Mode of Disbursement
1) In case of Local procurement value of lease item will be paid by pay order in
favor of supplier.
2) In case of foreign procurement by import , PAD liability will be adjusted by
creating Lease finance .
Risk Fund
A risk fund @1% shall be realised against each lease on the acquisition cost of lease
item before disbursement.
Lease Rental
Monthly Lease Rental shall be calculated comprising Depreciation Interest. Lease
rental will be calculated in amortized even repayment system.
Incase of individual loan, an applicant has to submit at least 6 month latest financial
statement of their own bank account along with his photocopy of passport or ID card or any
other documentation, as his personal identification. If the loan is for house repairing then the
borrower has to submit various documents of existing house as an evidence of house owner.
Thereafter, he has to submit price quotation accepted and signed by the borrower, a salary
certificate given by the organization (if borrower is a service holder) and with all other
necessary documents.
But in the case of business person, some excess documents are required. Borrower has to
submit at least 12 months latest financial statement of their own bank account. They are also
required to submit the names of all board of direct of the organization.
The following papers will have to be submitted while applying for loan:
Application in prescribed form duly filled in all the columns and signed by the
applicant.
Two passport size photographs of the applicant duly attested by manager/
relationship manager of the branch. A photograph of the house/ building/ flat
is to be sent with the proposal.
Estimate of the proposed expenditure to be incurred for the repairing and or
renovation of the house/ building/ flat to be submitted of the application.
v
Others
The repairing and/ or renovation work must be done within the premises as per
estimate submitted by the party with the application.
Since there is no provision for insurance cover against the loan, the borrower
will furnish an under taking to the effect that he/she will repay the banks loan
even if there is any loss of property due to natural calamity.
The borrower will allow the bank official to inspect the side at any time.
The borrower will immediately inform the bank if he /she or his /her grantor
changes residential address or professional.
The borrower will not sell, gift or transfer the possession/owner ship of the
house/building /flat before full adjustment of the loan without prior permission
from the bank.
Existing rent of the house /building /flat and other source of income of the
applicant are to be mentioned in loan application form.
After that, the applicants for loan has to fill up a CIB (Credit Information Bureau) form and
must be verified by Bangladesh Bank whether the applicant has any irregularities in
repayment of loan or any other credit records.
After that the employee of Shaheb Bazar branch cheeks all documents provided by the
borrower .the following documents is checked:
Application and passport size photograph: The employees of Uttara branch
cheeks application and 2 or 3 copies of recent passport size photographs.
Price quotation: A quotation accepted by the applicant should also be submitted to
Uttara Bank Limited. And this quotation must be real, because this is also be
verified ,it is genuine or not .
Passport /voter ID / office ID/ other ID: Passport, voter ID, office ID, or any other
Kinds of are ID are also required as and evidence of the applicants ID and should be
submitted by the prescribed application form.
Salary Certificate: If the applicant is a service holder, then a real salary certificate,
signed by his superior is also needed.
Photocopy of latest trade license: if the applicant is a business person and the
business is a proprietorship business, then a photocopy of latest trade license of his
organization is also required,
Photocopy of registered/Notarized partnership deed: if the business is a
partnership business, then the applicant has to submit a photocopy of registered or
v
notarized partnership deed to UTTARA BANK LTD. these deeds of the applicant
business are also be verified carefully.
Tax documents: sometimes personal relevant income tax documents are also needed
and should be submitted to UTTARA BANK LTD.
Bank statement: bank statement of the applicants account is very much important.
The applicant has to submit latest 6 months transactions.
Checking duplicity and regular liabilities with UTTARA BANK LTD: in this
part of verification duplicity and regular liabilities of an applicant UBL are also be
checked.
Checking proper filling up of the application: filling up of the application is also
an important requirement.
After that,SHAHEB BAZAR BRANCH sent a very efficient team for the
verification. If the team is satisfied by all aspects, then they report to the branch
manager. If the branch manager agrees, then he gives order for preparing proposal
for loan.
After getting the permission from manager the employees team prepares loan statement of
SHAHEB BAZAR BRANCH. By adding all the documents, submit it to head office and
zonal office.
The branch Relationship Manager will process the loan applications and the Zonal
Head will sanction the loan within his discretionary power on inspection of the
House/ Building/ Flat and on verification of possible rental income and the branch
Manager will disburse the loan on completion of all formalities against the allocation.
ii.
Ceiling of the loan for individual party will be considered based on 50% to 60% of the
Forced Sale Value (FSV) of the properties (Land+ building).
iii.
On receipt of application with all the required papers, the Relationship Manager (RM)
will verify the genuineness of the information & particular of the application by
deputing an inspecting official of the bank. He will also ensure geniuses of the same
by applying his dust prudence. If all the paper are found all right and genuine and he
is fully satisfied about the geniuses of the applicant, the RM will process the loan and
get the same sanctioned by Zonal Head within 15 days from the receipt of the
application complete in all respect. If it exceeds discretionary power of Zonal Head he
will immediately forward it through respective Zonal Office to Head Office for
consideration. A copy of sanction letter to be sent to the UTTARAN CONSUMERS
CREDIT CELL, CRM Division, Head Office immediately after sanction by the Zonal
Head to Zonal Head to Record the same in the computer.
1. The following delegation of powers is granted to the concerned Zonal Head and Head
Office:
Zonal Head
Up to TK.2,00,000.00
UP to TK. 3,00,000.00
Up to TK.7,00,000.00
Up to TK. 10,00,000.00
Up to TK. 25,00,000.00
Loans
Interest rate %
01
12%
02
Personal Loan
16%
03
15%
04
15%
05
2%pius
concerned
rate.
06
15%
O7
15%
08
15%
09
16%
10
15%
11
12
Lease Financing
15%
13
15%
14
13%
FDR
15
15%
16
10%
Chapter
CHAPTER 5:
FINDINGS
&
RECOMMENDATION
5.1. FINDINGS
From overall study some problems have been identified. Those are as follows:
Uttara Bank Limited is not offering technology based services (ATM, SMS
Banking, Internet Banking etc) which are very much popular in recent time.
UBL follows traditional (manual) banking system general banking.
The banking sector is partly computerized.
Lack of promotional activities.
Since Loan &Advance department is not fully automated there is a high risk of
losing documents of disbursed loans.
UBL Shaheb Bazar, Branch mainly depends on UHRL(Uttaran house repairing
Loan)
Some borrowers do not pay their payment timely (according to the ledger).
The loans and advance department takes a long time to process a loan because the
process of sanctioning loan is done manually.
Uttara Bank limited do not update its websites regularly, as a result the clients are
unable to gather information.
5.2. RECOMMENDATION
UBL should introduce modern banking system like Internet Banking, ATM. SMS
banking, debit /credit cards etc.
UBL should follow computerized banking system.
Website should update regularly.
Promotional activities should take place.
Loan & Advance department should be automated; as a result sectioning of loan
will be less time consuming.
UBL, Uttara Branch should reduce its dependency on UHRL.The branch should
encourage clients to take loans to other sectors.
The procedure should be automated; as a result sectioning of loan will be less time
consuming.
The loan management should very much sincere; as a result the bank can
minimize its bad debt
Documentation about loans should maintain propert.
Highly efficient employee should take responsibility for loan and advance section.
The bank should give reminder to the borrower to pay their payment timely.
CONCLUSION
Banking sector of Bangladesh consists of several nationalized and Private Bank .They are
doing their activities and highly contribute to the national economy. Among them Uttara
Bank Limited also makes significant contribution to the economy. They are performing their
activities, as a result not only the bank but also the economy is benefited. The bank is
performing Loan advance, foreign exchange, general banking activities etc, as a result they
are mobilizing the money and do well for the economy. Although they have some limitation
in their service, they are doing job for the economy. If they can reduce their limitation and
introduce new ideas, they can do better in the banking sector of Bangladesh.
APPENDIX
A/C
Account
ATM
ALCO
B/L
Bill of Lading
BB
Bangladesh Bank
BIC
BR
Branch
C&F
CC
Cash Credit
CCI & E
CFR
CRF
CIB
DD
Demand Draft
DBDS
EDF
EPB
EPZ
ERC
EXP
Export Form
FC
Foreign Currency
FDD
FDR
FOB
Free On Board
IBCA
IBDA
IMP
Import Form
IRC
IBC
KYC
L/C
Letter Of Credit
LCAF
LIM
LTR
LSC
MT
Mail Transfer
MDS
OD
Over Draft
OBC
PAD
PO
Pay Order
PSI
PL
Personal Loan
SOD
Secured Overdraft
STD
SWIFT
SND
SDR
SBL
SC
Short Collection
TC
Travelers Cheque
TIN
TR
Truck Receipt
TT
Telegraphic Transfer
TS
Transfer Scroll
UHRL
USBL
UCPDC
BIBLIOGRAPHY:
1) Websites:
www.google.com
www.uttarabank-bd.com
Instruction Circular of Uttara bank.
2) Shekhar k.c & Shekhar L. Banking theory and Practice 18 th
Edition, Bikash Publication house Pvt Ltd (New Delhi)
3) Bad Loan management of
2010