Independent University, Bangladesh

INTERNSHIP REPORT

ON

WORKING REPORT OF UNITED COMMERCIAL BANK LIMITED

SUBMITTED TO:

MD. KAMRUL ISLAM

LECTURER

SCHOOL OF BUSINESS (IUB)

SUBMITTED BY:

NAFEES MAINUDDIN

ID-1320819

BBA499A

Date of Submission: 30thNovember 2016

 Letter of Transmittal

Md. Kamrul Islam

Lecturer

School Of Business

Independent University, Bangladesh

Subject: Submission of Internship Report

Dear Sir,

I am submitting my internship report as a part of my internship (BBA499A) and would like

to take the opportunity to thank you for your guidance and supervision in its completion.
With great pleasure, I here submit my report on the “Working Activities of United
Commercial Bank Limited”. I have been doing my internship at UCBL, Banani Branch
from 15th September 2016 which will be completed by 15th December 2016.While working
with this branch of UCBL I have tried to enhance my knowledge and skill. I have tried to
gather prior knowledge about the organization culture and how it works before facing the
professional world. I express my profound gratitude to my supervisor Md. Kamrul Islam for
providing his important instructions, proper suggestions and correction for improvement.

However, should you need any clarifications I will be obliged to provide with further
explanation.

Sincerely Yours

.....................................................

NafeesMainuddin

ID - 1320819
 Acknowledgement
For making a study report, a sincere supervision and guidance of expert and experienced
professionals are required. I have received sincere co-operation, inspirations, and references
from my respected supervisor and the Executive of United Commercial Bank Limited. First
of all, I thank my supervisor Md. Kamrul Islam, Lecturer at School of Business in
Independent University, Bangladesh for providing his valuable suggestions and instructions. I
would like to express my gratitude to UCBL staff members of Banani branch for giving me
the opportunity of doing internship program. I will never forget their kind and friendly
behavior. I got all the support and guidance whenever required from all the staff members of
the United Commercial Bank limited at Banani branch. Especially I express my gratitude
towards Branch Manager Niamat Uddin Ahmed (EVP), Operation Manager Md. Anis Ur
Rahman (FVP), GB In-charge Murad Rahman Aranayo (AVP) and most obviously Javed
Iqbal (SVP) at Brand Marketing & Corporate Affairs in UCBL corporate office who gave me
the chance to complete an internship. I also thank Salma Iqbal (EO), Nabil Mahmud (PO),
ZulfiaNuzhatAlamgir (PO),TaufiqZahir (officer) and other people who gave me all their
support I needed to prepare this report. Last, of all my deepest gratitude goes to Almighty
Allah for giving me courage and ability to complete this task.
 Table of Contents

1. Introduction ........................................................................................................................ 1
1.1 Bank Profile of UCBL...................................................................................................... 1
1.1.1 Vision, Mission, Objectives and Core Values............................................................... 4
1.1.2 Corporate Division& Department ................................................................................. 5
1.1.3 Details of the Services ................................................................................................... 6
1.1.4 Operation Details of UCBL........................................................................................... 8
1.1.5 Social Responsibilities of UCBL ................................................................................ 12
2. Working Experience at UCBL ......................................................................................... 13
2.1 Duties Responsibilities ................................................................................................... 13
2.2 Function of the department ............................................................................................ 15
3. Limitations ........................................................................................................................ 27
3.1 Problems ......................................................................................................................... 27
3.2 Analysis the Relevant Theory ........................................................................................ 27
3.3 Recommendation ............................................................................................................ 28
4. Conclusion ........................................................................................................................ 29
References ................................................................................................................................ 30
 List of Tables
S.L No. Title of the Table Page no
1 Corporate information of UCBL 2
2 Financial Highlights 3
3. Name of Existing Product & interest rate 7
4 Name of the new product & interest rate 8
5 Different types of credit facilities of UCBL 10
6 Saving Deposit account 17
7 Special Notice deposit 17
8 Fixed Deposit Account 18
9 Activities & paper necessary for opening an
18
account
10 Foreign Exchange business 26

List of Figure
S.L No Figure Title Page No.
1 Corporate Slogan of UCB 2
2 Division operation in UCBL 5
3 Hierarchy of Position of UCBL in Banani
6
Branch
4 Key function of UCBL 15
5 General Banking 16
 Executive Summary

The banking sector is expanding day by day, at the same time banking process is also
becoming faster, easier and the banking sector is becoming wider. As the demand for better
services is increasing, banks are coming up with different innovative ideas and products.

In order to survive in the competitive field of the banking sector, all banking organizations
are looking for better service opportunity to provide to its fellow clients.

UCBL believes in the vision of best commercial bank in Bangladesh in terms of efficiency.
To achieve the desired goal, the bank is showing the best strategic plans and competitive
performance over others in this rapidly changing competitive environment.

In part one, I discussed the historical background, organizational structure, vision, mission &
performance of UCBL. In part two, three and four I discussed my job responsibility,
organization performance, products, suggestions, recommendation, conclusion and other
aspects that I faced during my working period. The overall objective and mission were to
represent United Commercial Bank and to have a clear conception about all the essential
parts of the internship program. I hope this report despite its many limitations; will be
gateway to have a clear concept about the term & guideline of United Commercial Bank Ltd.
 Chapter 1

1. Introduction

Generally by the word – "Bank" we can easily understand that it is a financial institution that
deals with money. But there are different types of banks such as Central Bank (Father of
every bank) Commercial Banks, Investment Banks etc. But when we use the term bank,
without any prefix or qualification it refers to Commercial banks. Commercial Bank is the
primary contributor to the economy of a country. So, we can say that Commercial bank is the
profit making institution that holds the deposit of the individuals and business in checking
and saving account and uses this fund to make loans. For this purpose, people and Govt. are
very much dependent on these banks as the financial intermediary. As banks are profit
earning institutions they just collect a deposit at the lowest possible cost and provide loans at
a higher cost. The differences between two are the profit for the bank. The banking sector is
expanding day by day in different ways. At the same time, the banking process is becoming
faster, easier and becoming wider. They are coming with different innovative ideas and
products.

1.1 Bank Profile of UCBL

About United Commercial Bank Limited (UCBL)

United Commercial Bank is one of the oldest and leading commercial banks in Bangladesh.
The bank activity contributed to the economic and social developments of Bangladesh
through its highly skilled management team and dedicated employee base. This Bank is a
public limited company. UCBL was incorporated on June 16, 1983, and started its
commencement on June 17, 1983. Now it has 171 branches, 151 ATM booths in different
cities of the Country. Since inception, the bank has been making a significant profit every
year and this has been possible due to significant growth of the bank. 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
Page 1 of 30
Corporate Slogan of UCB

Figure: 1

Management
In management, the bank has a combination of highly skilled and eminent bankers of the
country of varied experience and expertise successfully led by Mr. Muhammed Ali, 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. Skilled
manpower is the most important strategic resources of any organization. With this end in
view, human resources development has always been receiving the highest priority in the
bank. UCB has a strong focus on imparting training towards the enhancement of the skills
and competencies of the employees to take over the challenge of modern banking. Since there
is no alternative to training for acquiring the required efficiency and professional excellence,
Bank’s Training Institute was busy throughout the year to focus on creating awareness about
the best principles and practices in banking through imparting training on different aspects of
banking. Employee’s performances are regularly evaluated and a good number of them have
been promoted as a reward and recognition of their good performances.

Corporate information of UCBL

CWS(A)-1,Road – 34, Gulshan Avenue

Registered Office
Dhaka-1212,Bangladesh

Phone +88-02-8852500

+88-02-8852500-6000
Fax
+88-02-8852504

Page 2 of 30
 E-Mail info@ucbl.com

Website www.ucbl.com

S.W.I.F.T UCBLBDDH

Year of Incorporation June 26, 1983

Table: 1

Financial Highlights

(Figures in million taka and per share detail).

2015 2014 2013 2012 2011

Authorized
15,000 15,000 15,000 15,000 15,000
capital

Paid-up capital 10,039.34 8,366.12 8,366.12 8,366.12 7,274.88

Deposits 220,866.48 211,072.06 184,896.85 170,530.54 139,484.75

Advances 197,413.64 174,146.10 148,664.86 136,071.65 139,484.75

Investments 44,345.73 44,288.60 35,587.25 26,090.32 19,383.42

Gross Profit 15,548 15,209.39 12,398.44 10,177.66 9,294.37

Net Profit 7,252.34 6,835.67 5,887.32 3,739.06 5,172.91

(pre-tax)

Import Business 1,69,577.70 1,55,282.40 117,542.90 94,843.80 90,919.70

Export Business 1,48,229.30 1,30,447.20 94,288.50 78,309.10 76,952.80

Page 3 of 30
 Foreign
537 532 363 357 333
Correspondents

Number of
3837 3679 3445 2374 2,962
Employees

Number of
158 148 139 130 115
branches

Table: 2(Source: Annual Report, 2011–2015 & Auditor’s Report and Audited Financial Statements, 2015)

1.1.1 Vision, Mission, Objectives and Core Values

 Vision
 To be the best private commercial bank in Bangladesh in term of efficiency,
capital adequacy. Asset quality, sound management and profitability having
strong liquidity

 Mission
 To build United Commercial Bank Limited into an efficient, market driven,
customer focused institution with the good corporate governance structure.
 Continuous improvement in our business policies, procedure and efficiency
through integration of technology at all levels.

 Objectives
 To offer highest possible benefit to the customer for developing welfare
oriented banking services.
 Setting industry benchmarks of world class standard in delivering customer
value through our comprehensive product range, customer service, and all our
activities.
 Maintaining the highest ethical standards and a community responsibility
worth of a leading corporate citizen.
 The anticipating business solution requires by all our customers everywhere
and innovatively supplying them beyond expectation.

Page 4 of 30
 Core Values
 The customer is always first.
 Emphasize on professional ethics.
 Maintaining quality at all levels.
 They say what they believe in
 Believe in being a responsible corporation citizen

1.1.2 Corporate Division& Department

Divisions operating in UCBL

Figure: 2

Page 5 of 30
Hierarchy of Position in UCBL Banani Branch

MANAGING DIRECTOR
ADDITIONAL MANAGING DIRECTOR
DEPUTY MANAGING DIRECTOR
SENIOR EXECUTIVE VICE PRESIDENT
EXECUTIVE VICE PRESIDENT
SENIOR VICE PRESIDENT
FIRST VICE PRESIDENT
VICE PRESIDENT
FIRST ASSISTANT VICE PRESIDENT
ASSISTANT VICE PRESIDENT
SENIOR EXECUTIVE OFFICER
EXECUTIVE OFFICER
SENIOR OFFICER
OFFICER
JUNIOR OFFICER

Figure: 3

1.1.3 Details of the Services

UCB (Product and Services)

UCB Multi-Millionaire UCB Money Maximizer UCB Earning Plus

UCB DPS Plus
Online Service Credit Card
Monthly Savings scheme
Travelers Cheques
Working Capital Finance
Industrial Finance
Western Money Transfer
One Stop Service
Deposit Insurance Scheme
Import Finance
Loan Syndication
Foreign Currency Deposit A/C
SMS Banking Service
Time Deposit Scheme
Inward & Outward Remittances
Export Finance
Trade Finance
Locker Service

Page 6 of 30
  UCB Earning Plus: Is a time Deposit product which offers mostly returns on
depositors fixed deposit over a certain period of time.
 UCB Money Maximizer: Is a time Deposit product which offers Double returns on
depositors fixed deposit over a certain period of time.
 UCB Multi-Millionaire: Is a recurring monthly saving scheme for Bangladeshi
citizens who have a future plan or dream to be a millionaire or multimillionaire.
 UCB DPS plus: Is a recurring monthly saving scheme for Bangladeshi citizen. It is a
monthly saving plan created for developing the savings habit of customers & turn
small savings into a large amount of money over a certain period of time.
 UCB youngsters Savings Account: Is a condition free savings account which offers
daily product basis interest. There will be no condition on a number of transaction &
amount of deposit for applying/calculating of interest.
 UCB youngsters DPS: Is a recurring savings scheme for youngsters students of any
school or institutions. It is a monthly saving plan created for developing the saving
habit of youngsters for their better future & turn small savings into a large amount of
money over a certain period of student life.
 UCB Royal Savings: Is a condition free Savings account which offers daily product
basis interest. There will be no condition on a number of transactions & amount of
deposit but the balance of the account comes below TK 1.lac on anyway no interest
shall be given for that day.

Name of existing products & interest Rate

Name of the Existing Products Interest Rate (%)

UCB Earning plus 6.50%
(Monthly/Quarterly interest payable fixed deposit (3/5 years terms)
UCB Money Maximizer 6.50%
(Double money)-Fixed deposit (11 years)
UCB Multimillionaire 6.50%
(Monthly savings scheme) (5-15 years)
UCB DPS plus 6.50%
(Monthly savings scheme) (5/10 years)
Name of the new products &interest rate
Table: 3
Page 7 of 30
 Name of the New products Interest rate (%)
UCB Earning First Fixed Deposit 3.25%-5.75%
(prepaid interest payable Fixed deposit)
UCB youngsters Savings Account 4%
(Saving Account for youngsters)
UCB Youngsters DPS 6.50%
(Monthly Saving Scheme for
youngsters)
UCB Imperial Saving Deposit 3.50%- 4.50%
Table: 4

1.1.4 Operation Details of UCBL

Fund Transfer Services of UCBL:

United Commercial Bank Limited (UCBL) recently used an electronic fund transfer network
to provide faster and more efficient services for their customers. By launching the network
titled “Bangladesh Electronic Fund Transfer Network” (BEFTIN), the bank is able to provide
services of inward foreign remittances of its outlets in the country.

A number of companies deposit their distributors fund through UCB Online banking channel:

 Grameenphone Dealers Fund

 Banglalink Dealers Fund
 Pran Distributors Fund
 Bangla Building Distributors Fund
 Unique Oval Company Ltd.
 Lanka Bangla Finance.etc

Page 8 of 30
The United commercial bank pays high importance to the brands.

1. Banglalink
2. Airtel
3. Qubee
4. Banglalion
5. Grameenphone
Because their customers can pay their bills with UCBL all over Bangladesh very easily.

Online banking Service

“To err is human and forgiveness divines” a proverb, the bank believes but the customers will
not accept. Because for a service, they pay for they want it 100% defect free. So the
improvement of the customer service should always be their motto.

UCB has stepped into the electronic banking age. Now, clients can deposit and withdraw
cash, get a mini statement, check the balance and even transfer money within their accounts
and pay installments from any of the branches with the online facility. This is just beginning
of our any branch banking under which other branches will come soon. For the convenience
of our valued customers, this is the way UCB would like to modernize it and serve them
better by introducing state-of-the-art banking concept as the first generation local private
bank. The software that UCB using for online banking is called “PC Bank 2000” which is
Design Developed by Leeds Corporation limited Dhaka, Bangladesh. They also implemented
Oracle flex cube (a software gives one stop service) as core banking solution from
11thJune2014 to easy the banking service.

Key Features:

 Centralized Database
 Platform Independent
 Real-time any branch banking
 Internet Banking Interface
 ATM Interface
 Corporate MIS facility

Page 9 of 30
The services online banking services include:

 Account Operations and Inquiries

 Fund Transfers and Payments:
 Utility Bill Payment (Electricity, Gas, Telephone, and Water) from the Customers'
Savings or Checking Accounts
 Deposits
 Bank statement to their customer’s transaction

Different types of credit facility of UCBL

The following are the existing credit products of United Commercial Bank Ltd. covering term
loan, export lending, and working capital commercial lending. The products are subject to
view & amendment of the product/launching new product will be carried out on a continuous
basis.

Name of the Facility Description Tenor

Secured overdraft 100% cash 6 months
1.SOD(FO) Covered 12 months
2.TOD Temporary Overdraft 60 days

3.PAD(Sight) Payment against Document 21 days

(Foreign –sight)
4.PAD(EDF) Payment against 21 days
Document(EDF)
5.PAD(Local) Payment against document 21 days
(local-sight)
6.PAD(A/G/B) Payment against documents 21 days
(A/G/B)
7.PC(RMG& Other than RMG) Packing credit against 120 days
Export/C&Export order
8. ECC (New) Export cash credit L/C validity (180 days)
9.BFL Bridge Financing Loan 12-36 months
10.TRL Transport Loan 36-48 months

11.HBL (Com) House Building Loan 36-96 months

(commercial)

Page 10 of 30
12.HBL (Res) House Building loan 30-120 months
( Residential)
13.LTR Loan against Trust Receipt 180 days

14. CC (Hypo) Cash credit against 2 years

hypothecation of inventory
15.CC(Pledge) Cash credit against Pledge of 12 months
inventory
16. Loan General(New) Loan general 12-36 months

17.FBPD Foreign Bill Purchased & As per L/C Terms

Discounted
18.LBPD Local bill purchased As per L/C Terms
discounted
19.LIM(Rename) Import loan against imported 180 days
Merchandise pledged
Term loan against Fixed Over 1 year
20. Term Loan assets Max 7 years

21.Time Loan Time Loan against other 12 months

security
22.OAP Own Acceptance Purchased 90 days

23.OD(General) Overdraft against Other 12 months

security Collateral
24.CP(local) Cheque purchased( local ) 30 days
25.CP(foreign) Cheque purchased(foreign) 45 days

26. Consumer credit scheme
27.Hire purchase (New)
28.Lease Financing
29.OD( Work order)
30.OD(EM)
Consumer credit provided to Over 12-60 months
the middle-class group
Hire purchase Over 12 months
Lease Financing Over 1-5 years
Overdraft against Work order 6-36 months
Overdraft for Earnest Money 90 days

Table: 5 (Source: Collected by Bank employees)

Page 11 of 30
 1.1.5 Social Responsibilities of UCBL

The “social contract” between the corporation and the community is of critical importance for
United Commercial Bank. CSR is ingrained in the corporate culture and it is a part and parcel
of what they do. UCB has incorporated CSR activities into its core strategic business
planning and translated it into action across different areas and community of the country.
The bank has organized its CSR activities around seven main areas.

 Education – Give financial support for underprivileged children and also by giving
scholarship for poor and brilliant students. Enhance the capacity of extra-curriculum
of school, college, and university students.
 Environment - Donation to activities to protect the climate. Create awareness
regarding climate change also an initiative toward less fuel consumption and energy
saving.
 Health – Donation to non-profit organizations for working on child health, disability
children also give treatment to destitute.
 Disaster Management – Give financial support to Govt. and Non-Govt. relief &
welfare funds for victims of natural disaster.

(This passage is collected from UCB website)

Page 12 of 30
 Chapter 2

2. Working Experience at UCBL

Rational of the Study

This is an Internship report prepared as a part of completing BBA program in Independent
University, Bangladesh. I’m Nafees Mainuddin ID-1320819 was placed in United
Commercial Bank, as a requirement for the completion of the program. I needed to submit
this report which would include an overview of the organization. The report is being formed
on the “Working activities at United Commercial Bank Ltd, Banani Branch, Dhaka”

Internship Outcome
I have done my Internship at UCBL, Banani Branch located in 39,Kamal Ataturk Road,
Dhaka 1212. In My Internship, I was assigned to General Banking and Customer Care
division. Basically, this division is where Banking starts. My internship at United
Commercial Bank Limited started on 15thSeptember 2016. My UCBL Supervisor is Mr. Md.
Anisur Ur Rahman (FVP) who is the Operation Manager of the bank. I worked my journey as
GB Team. I have also experienced corporate culture and environment.

2.1 Duties Responsibilities

Firstly I mentioned that I started my work in General banking and customer care department.
At first, I recorded various documents in the register book. Various documents received from
different areas I received this and wrote it in the register book.

After that my duty and responsibility were to issue Pay Order, Cheque book requisition
received, and delivery, Provide bank statement, Balance Check of different accounts,
Opening the savings a/c and fill up the Transaction profile(TP),Clearing the Cheque, NID
verification of account holders. I also learned how to prepare bank solvency certificate in
saving, TD (Term Deposit) and RD (Requiring Deposit) accounts.

I also worked with Card service operation. It is also an important part of General Banking. I
called the customers to receive their debit or credit card. Head office always gives a target

Page 13 of 30
and all branches must fill up these targets at any cost. I called the customer and requested
them to take a debit card.

I worked with different software named GOAML. Basically, it’s a reporting system of
Bangladesh Bank. When any transaction crosses the Transaction profile Limit bank has to
report the Bangladesh Bank for every detail of the transaction. And sometimes I also worked
in Flex cube and AML.

I was in GB section I worked with them as a helping hand. Mainly worked in A/C opening
desk and learned everything related to account opening.

Cross- Checking with different Departments

Account Opening Section

Account opening procedure of UCB is very convenient. I had to collect all the necessary
documents whenever they open an account. People willingly came to open an account in this
branch. A bank has to maintain different types of accounts for a different purpose. UCB
offers the general deposit products in the form of various accounts. There are different types
of accounts offered by UCB for its target group.

By opening an account the bank connects with its customer to avail the facilities provided by
the bank. I helped the new customers to know about UCB products and services.

Issuance of Cheque Book

All the account opening formalities must be completed before, issuance of the cheque book.
Particulars of the cheque book requisition should be completed containing the title of
account, account number, the number of leaves and signature of the customer. Signature of
the customer is verified on the requisition. If the customer is unable to collect the book then
he or she can give authorization to the third party to collect the cheque book.

Customer care service

In every bank, the customer wants to get the best service without facing any problems. I
worked in customer care help desk where I had to give the information about the UCBL.

Page 14 of 30
  Sharing information about saving/current/student/DPS/FDR accounts.
 Collect cheque book requisition.
 Cheque received
 Balance check.
 Provide bank statement and solvency certificate.
 ATM related queries/request.
 Debit card information and service

I also have to receive phone calls for knowing the customer problem. Now a days phone
banking and call center is a modern banking service by which clients can get the best service
over mobile and telephone without going to any branch and can avail all sort of
queries/requests/complaints about their problem.

2.2 Function of the department

Key Function of UCBL

Like other business banks UCBL plays out all customary saving money business including
presentation of an extensive variety of savings and credit items, retail banking and backup
benefit with the support of advanced innovation and expert administration, yet the UCBL
stresses its capacity in export and import exchange and financing of export arranged
enterprises will upgrade riches, recover more work open doors helps development of capital
and decreases in adjusting in a critical position of installment in the nation.

Figure: 3

Page 15 of 30
General Banking

GB

Account Opening Section

Local Remittance Section

Bills and Clearing Section

Cash Section

Deposit Section

Figure: 4

Account Opening Section

The relationship between banker and customers begins with the opening of an account by the
customer. Opening an account binds the banker and customers into a contractual relationship.
But the selection of customer for opening an account is a very lengthy process. In fact, fraud
and forgery for all kinds start by opening an account. So bank must take extreme caution in
this section. A customer can open different types of account through the department such as –

 Current Deposit Accounts

 Savings Deposit Accounts
 Special Notice Deposits
 Fixed Deposit Accounts

Current Deposit Accounts

 Minimum opening balance tk 1000/- but under special circumstances, it may be

opened with tk 500/-
Page 16 of 30
  Credit balance shall be payable on demand
 Not more than one account shall be opened in one name in the same branch
 Incidental charges shall be realized from SB/CD accounts as per rates and rules
advised by head
 Office from time to time. Vat & tax as per Govt. rules.

“Proprietorship firm, Partnership company and private Limited company can open this
type of Account”. This time bank offers cheque book, Internet banking, free account
statement etc

Savings Deposit Accounts

 Minimum opening balance tk 1000/- and the account may not be retained where the
balance falls below 200/- tk.
 2 calculation of Interest
 A depositor may withdraw money from his/her account twice only in any week
Below Tk. 10.00 Lac 3.50%
Tk. 10.00 lac & above but below Tk.50.00 lac 4.00%
Tk 50.00 lac & above but below tk 1.00 crore 4.50%
Tk 1.00 crore& above 4.50%
Table: 6

Special Notice Deposits

 Minimum opening balance tk 1,00,000/-

 The deposit held in these accounts shall be payable on short notice for
minimum 7 days.
 Account maintained more than one year, interest will be allowed at annual rest
 Interest is allowed on daily product basis

Below tk 1.00 core

Tk. 1.00 crore& above but below 50.00 core 3.00 %
Tk.25.00 crore& above but below 50.00 core
Tk. 50.00 crore& above but below tk 100.00 4.00%
core
Page 17 of 30
 Tk. 100.00 crore& above
Table: 7

“Proprietorship firm, Partnership company and private Limited company can open
this type of Account”. This time bank offer cheque book, Internet banking, free
account statement etc.

Fixed Deposit Accounts

 FDR accounts shall be opened for a fixed period varying from three months to
3 years or above and are payable at a fixed date maturity
 Interest on fixed deposit account shall be paid at rates fixed by head office
from time to time
 If there id no E-Tin certificate then bank must be deducted 15% charge. Retail
and SME rate
Month Taka Int.
03/06/12 Up to 50.00 lac – above 100.crore 5.00%
24 Up to 50.00 lac – above 100.crore 5.25%
36 Up to 50.00 lac – above 100.crore 5.75%
Table: 8

Activities & paper necessary for opening an account

Individual Account Sole Proprietorship Firm Partnership Firm

 3 copies photos of the  A copy of valid Trade  Resolution for
account holder. license. opening the account
 A copy of  3 copy photos of the and authorization for
NID/Passport/Birth signatory. it operation duly signs
certificate of account  A copy of by partners and
holder and Nominee. NID/Passport of the certifies by Managing
 A copy of TIN (IF). signatory. partners.
 Applicant’s  Sole proprietorship  A copy of valid trade
photograph and form declaration. license.

Page 18 of 30
 must be attested by  A copy of E-TIN  A copy of partnership
the Introducer. Company / personal. deed certified by he
 Signature with seal. managing partner.
All photocopy documents  List of partners with
attested by proprietorship. their present and
permanent address.
 Two copies
photographs of the
signatories.
 NID/Passport.
 E-TIN.
 All photocopy
attested by the
partners.

Limited Liability Club/Society/Trust/Association FC Account

Company
 Extract of  Resolution or extract of RFCD- (Resident Foreign
resolution for resolution for opening Current Deposit)
opening the account the account and  A copy of valid
and authorization authorization for its passport with arrival
for its operation operation should sign as seal.
should be signed as per constitution and  Declaration of the
per quorum and certified by the customer for deposit
certificate by the Chairperson. the FC.
chairperson / MD.  Certified two copy of the  2 copies photos of
 True copy of constitution/ by law /trust the applicant.
memorandum & deed.  Nominee
articles of  Certificated of NID/passport copy
association of the incorporation. and one copy photo
company certified  List of members with attested by the
by R.J.S.C their address.(L/H) account holder.
 Certificate of  Two copies photographs  Applicants
incorporation. of the signatories. photograph & form
 Valid trade license.  A copy of NID/ passport must be attested by
 Two copies of signatories. the introducer.
photographs of the  All photocopy document
signatories. attested by chair person
 A copy of valid
passport/NID of

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 signatories. University :
 List of directors  Constitution registered currency)
with their by RJSC
address.(L/H)  Approval letter by UGC
 All photocopy  Approval from Education
documents attested Ministry.
by  List of members. (Letter
MD/Chairperson. head.
 E-TIN company.  Resolution or extract
resolution
 Two copies photographs
of the signatories.
 A copy of passport/ NID
of the Signatories.
Table: 9
FC account – ( Foreign
 Work permit/job
contact/ID
 Copy of valid
passport with seal
 Declaration of the
customer for deposit
the FC.
 3 copies photos of
the applicant.
 Nominee
NID/passport copy
and one copy photo
attested by the
account holder.
 Applicants
photograph & form
must be attested by
the introducer

Local Remittance

The commercial bank Remittance facilities to its customer are to avoid risk rising out of
profit or loss in cash carrying cash money to one place to another or making payment to
someone in another place. Banks take this risk remit the fund on behalf of the customer to
save them from any awkward happening through the network of their branches and ensure
payment to the beneficiary in exchange for a little bit benefit known as a commission. There
is an important mode of remitting money from one place to another place.

Pay Order Issue

Customer is given a perform-

 After filling the form carefully the customer pays the money in cash or by cheques,
 The authorized person of the bank then issues PO on its specific block. This block has
3 part. One for the bank and another two for the customer. A/c payee crossing its
sealed on all PO issued by the bank.

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  Officer writes down the name and address of the beneficiary on the main part of the
PO block. In other two part name and address of the customers is written.
 The officer gives an entry to the registry book and maintained the same number of PO
block.
 Two authorized officers signed the PO block.
 At the end, customer is provided with the two of PO block after signing the back of
banks part and register book.

Bills and Clearing Section

As per the article 37(2) OF Bangladesh Bank arrange, 1972, the banks which have
clearinghouse are called as schedule banks. The schedule banks clear the cheques drawn upon
each other through the clearinghouse. This is an agreement by the central bank where every
day the representative of the member banks gather to clearing the cheques. Banks for credit
of the proceeds to the customer‘s account accept cheques and other similar instruments. The
bank receives many such instruments during the day frorm account holders. Many of these
instruments are drawn payable at other banks. As cheques payment order or bill come from a
bank with the range of local clearinghouse then it is sent for collection through clearinghouse
deposits cheques of another bank which is within clearing house, then the bank will credit his
account, and collect the cheques. Through the amount is credited to the customer‘s account
but will not get the money until the cheques are honored. There are three essential things for
clearing the instrument:

 Crossing seal
 Endorsement seal
 Clearing seal.

Cash Section

Money area is an extremely touchy organ in a branch and is taking care of with additional
care. Operations of this area are being the start of the saving money hour. Money officer
being his exchange with taking cash from the vault, known as the opening money adjust.
Vault is kept in an abundantly secured room. Keys to the room are under control of the trade
officer and branch out charge. The measure of opening money adjust is going into the money
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enroll. After an exchange of the entire day, the surplus cash stay in the money counter is
returned in the vault and known as the end adjust.

Deposit section

The function of the deposit section is very important. It is fully computerized. The Officer
of the deposit section maintains account number of all the customers of the bank. They are
used different code number for the different account. By this section, a depositor can know
what the present position of his /her account is. The officer makes three types of
transactions such as cash, clearing, and transfer.

These sections perform the following task

 Post all kind of transaction.

 Provide on demand report.
 Cheque maintenance.
 Preparation of day transaction position.
 Preparation of closing the monthly transaction.

Foreign exchange Operation of UCBL

Foreign exchange department deals with foreign currency and the other transaction. The
major job of this department are:

1. Letter of Credit (for Export & Import)

2. Dollar & Travelers Cheque Endorsement.
3. Foreign Remittance etc.

Transaction in respect of Export and Imports

A major portion of the foreign exchange transaction made by ADs related to exports and
imports. So the inspection team of Bangladesh Bank gives special attention to see that the
exchange control regulation regarding exports and imports are strictly followed by the ADs.

Some of these rules, compliance of which are carefully examined by the inspections are
mentioned below:

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Exports:

 All exports from Bangladesh must be declared on EXP form and exporters must get
themselves registered with the CCI &E. The registration number must be quoted on
relative EXP form.

 The EXP forms in quadruplicate duly signed by the exporters be certified by the AD
and submitted to the customs authorities along with the shipping bill at the time of
shipment. The customs authority will, with their seal and signature, send the original
copy to BB and the rest copies to the exporter. The exporter, in turn, will submit the
forms along with the shipping documents to the AD in time so that the AD can
forward the certified duplicate copy to the BB within 14 days from the date of
shipment.
 The AD should check the bill and other documents to see that those are in keeping
with the facts stated in the EXP forms. Special care should be exercised in checking
invoices to detect under invoicing of exports. Any suspicious circumstances should be
reported to BB.
 Export proceeds must be repatriated within 120 days failing which the exporter will
be liable to action under FER Act. All cases of delay in export proceed realization
should be reported to BB.

Imports:
 Before any letter of credit is opened for imports into Bangladesh the ADs should
verify that the importer is registered with the CCI&E or otherwise exempted from
such registration.
 The ADs are authorized to issue Letter of credit Authorization form’s (LCAF) in
conformity with import policy order (IPO). LCAFs have issued in sets of 5 copies, of
which one is marked ‘For Exchange Control Purpose’ and in used for opening LC and
for effecting remittances.
 If foreign exchange is intended to be bought from Bangladesh Bank against an LCAF
it has to be registered with Bangladesh Bank’s Registration unit located in the
concerned area office of the CCI&E.

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  The ADs will not issue blank LCAF to their clients. The importer should himself sign
the LCAF and an authorized official of the AD should authenticate it under his seal
and signature
 The opening of LCs and payments for imports should be made through an AD in the
area where the holder of the LCAF is a resident.
(Collected by Bangladesh Bank Journal)

Important terms of foreign Trade and Foreign Exchange:

The employee who is related of the bank to foreign exchange especially foreign business
should have knowledge of the following function:
1. Balance Of Trade: The difference between the values of commodity exports and
imports of a country during a given period of time.
2. Balance Of Payment: It is a comprehensive record of economic transaction of the
country with the rest of the world during a given period of time. It consists of the
transaction in two different accounts.
3. Authorization Dealers: The certain branches of commercial Bank are granted a license
by Bangladesh Bank to deal in foreign exchange business as per provision of foreign
Exchange Regulation Act 1947.

Types and related term of L/C:

Letter of credit deals in documents, not goods. A L/C can be Irrevocable or revocable.
 An irrevocable LC can’t be changed unless both buyer and seller agree.
 With a revocable LC, changes can be made without the consent of the beneficiary.
 A sight LC means that payment is made immediately to the beneficiary/seller/exporter
upon presentation of the correct documents in the required time frame.
 A time or date LC will specify when payment will be made at a future date and upon
presentation of the required documents. In deferred LC, payment will be made after
45 days from presenting the document.

Procedure of opening the L/C:

At first, an importer comes to the bank and wants to open L/C. The officer asks him the
nature of business, address of the office, the reason for choosing the bank etc for gathering
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the idea about the motive. Then the officer tells him to open the account and to transact for
some day. Besides importer should collect the IRC before opening l/c. The selected person on
institution those who have got valid Import Registration Certificate (IRC) form the chief
controller of Import and Export (CCI &E) can import and they are known as importers.

These importers can import goods as entitled in each as per import policy by opening letter of
credit though bank i.e. Authorized Dealer. Authorized Dealer means the branches of
commercial banks those who are authorized by the Bangladesh Bank to deal in foreign
exchange. Letter of credit may be defined as the letter of undertaking or letter of guarantee
issued by the L/C opening bank on behalf of the importer submits all the documents as
mentioned in the L/C within the time schedule to his bank exporter bank.

Before opening L/C in favor of the exporter the entitlement of the importer ( total amount in
taka he can import as per import policy) to be registered with Bangladesh Bank. For this
purpose, the importer applies through L/C authorization form. The authorized dealer will
issue LCA form to the individual importer at their request. After filled up and signed up the
appropriate column of the LCA form, the importer will submit it to Authorized Dealer who in
turn forward the same to Bangladesh Bank for registration where the fund is purchased from
Bangladesh Bank. After registration Bangladesh Bank forward the 1st and 2nd copy of LCA
form to the Authorized Dealer, 3rd and 4th copy to CCI & E and keep the 5th copy as their
office copy. 1st copy of LCA is known as Exchange Control copy against which Authorized
Dealer can open L/C at the request of the importer. 2nd Copy is known as custom purpose
copy which will be handed over to the importer who will clear the goods from the port of its
arrival through this custom purpose copy of LCA along with other shipping documents.

Foreign Remittance:

Foreign remittance is the transfer of foreign currency from one country to another country.
Actually, foreign remittance is purchase and sale of freely convertible foreign currencies as
permissible under exchange control regulations of the country. Foreign remittance is very
important for the country as the valuable foreign exchange is involved in the transfer
mechanism.

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There are two types of foreign remittance

 Foreign Inward Remittance - Remittance comes from foreign countries to our

country is called inward remittance. To the bankers or ADs, inward remittance means
the purchase of foreign currency by authorization dealers. Generally, it received by
draft, money gram , purchase of foreign bills &traveler's cheque export bills. These
are the formal channels of receiving inward remittance.
 Foreign Outward Remittance - Remittance goes to foreign countries from our
country is called Outward remittance. Such as import.

Foreign Exchange Business (Including Export, Import & Remittance)

(TK in Millions)

Content 2011 2012 2013 2014 2015

Foreign 184675.3 188001.2 222619.47 302397.5 328905.5
Exchange
Business
Table: 10

From the above graph, we see that amount of total imports Foreign Exchange Business are
increasing trend over the 5 years. It indicates that the bank is financing huge amount to help
in import materials and machinery. It also collects remittance by western money union and
other ways and provides customer services.

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 Chapter 3

3. Limitations

 Bank policy was not disclosing some data and information for various reasons.
 The time 12 weeks only which is insufficient to know all activities and prepare the
report.
 I had no opportunity to verify the satisfaction level of clients and received their
feedback.

3.1 Problems

As a Finance student, I always prefer a job in the financial organization. So obviously banks
get the first priority for me. An internship in a bank like UCBL is a great way to demonstrate
profit in this sector for me to learn more about the actual job. During internship period
employees of UCB Banani branch helped me a lot. But it was not possible for me to know
about the entire department within 3 months. The working pressure of UCBL is high but the
allowance is not so good. Most of the times UCB MIS, Flex cube hanged on banking hour. It
delays to performing banking activities. They have few numbers of ATM booths. UCB
contracts with DBBL to use their Booths in all over Bangladesh. The card service of UCBL is
poor and analog. It takes a huge time to confirm Debit card and authorization. Most of the
employee of UCB Banani is efficient to their work. Some of the employees are not happy
with their job responsibilities and also their position.

3.2 Analysis the Relevant Theory

As a student of Business studies, we follow and studies different part or subject such as
Management, Marketing, Finance, Accounting etc. So, there are various kinds of theory and
the part I got in Internship period at UCBL. UCBL is financial organization and I am also a
Finance student. I tried to describe the relevant theory that I learned in my major subject.

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As a student of Finance, we should know about the basic knowledge such as calculate Future
Value (FV), Present Value (PV), Annuity, Bid/Ask price etc. Now, I try to discuss where this
theory, formula we used in Bank.

 General Banking: We save our money for the different purpose. Sometimes we did
DPS and FDR. Here use in FV, PV, Annuity etc. In FDR we deposit our money in
various schemes. It’s would be 1/3/6/12 months. We deposit our money in one time
and withdraw the saving money with interest in after 1/3/6/12 months. Here we use
FV, PV.

In DPS we save our money in installment for different years. Banks provide an
interest rate for saving scheme. This time we use annuity. We know that when interest
and payment are same we use annuity formula.

 Foreign Exchange: Letter of credit is the main part of foreign exchange. When
Exporter and importer export /import the product this times they aware about buying
price, selling price. Bank works as a medium for maintaining this. We study about
L/C I got a clear idea in working Bank. I have a little idea about Foreign exchange.
But many concepts are related in this section.

3.3 Recommendation

 Employees should try to give better and faster customer service.

 More gifts, discount offer gives in debit and credit card for increased customer.
 UCBL should increase the number of their ATM booths
 UCBL should made advertisement on TV so that every initiative of the bank can go at
the door of the customer.
 Employees need more training and motivation,
 Faster Network division.
 Bank should provide the internship desk and some specific task for real life
experience also gives a better allowance.

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 Chapter 4

4. Conclusion

As an organization, the United Commercial Bank has earned the reputation of top listed
banks operating in Bangladesh. The organization is much more structured compared to any
other listed bank operating in Bangladesh. It is relentless in pursuit of business innovation
and improvement. It has a reputation as a leader in financing manufacturing sector.

At present, there is no such organization in the world that is free from problem and
challenges. Every concern has to strive and struggle a lot to be more profitable and to go
more competitive edge. It is continuing to make efforts to refine its products and operations
to make them more compatible. New deposit schemes have been introduced and an action
plans to maintain revenue growth in future. As the business and economic conditions remain
uncertain, UCB continues to develop new products like it has been doing in past.

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 References

1. Sikder, “Banking System & Monetary Policy”, 2012-13, Confidence Publishing

House Pvt. Ltd., Dhaka.
2. “Guideline for Foreign Exchange transaction” Evidence from Bangladesh Bank
Volume–1, 2005,Dhaka

3. Chowdhury L.R., “A Text Book on Foreign Exchange”, (2007), Somoy

Publishers, 1st Edition.
4. “A better bank A better planet” (2015), 2015 annual report of United
Commercial Bank. Retrieved from http://www.ucb.com.bd/reports/shareholder-
reports/annual-report/Annual-report-2015-part1.pdf.

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