1.
ORGANIZATION OVERVIEW
The Bank has made a significant
progress within a very short period of its existence and occupied an enviable
position among its competitors after achieving remarkable success in all areas
of business operation. The Bank is operating its business according to maintain
all the rules and regulations that the Government of Bangladesh imposed for
sound performance in the Banking Industry.
1.1 History of UCBL
United commercial Bank Ltd. is one of the leading private
commercial bank in Bangladesh. It sponsored by some dynamic and reported
entrepreneurs and eminent industrialists of the country and also participated
by the eminent. UCBL started its operation in the mid 1983. It renders banking
services to its customers. With an outstanding lance, the company is heading
towards the new millennium though focusing on leadership, service innovations
and all other is required for earning excellence and continued growth. This is
offering service-keeping harmony with the changing demands customers and is
getting customer satisfaction by assuring quality and by delivery better
service value comparing with its competitors.
The emergence of UCBL in private sector is an important event
in the arena of Bangladesh. It has been able to establish the network of 102
branches throughout the country. A team of highly qualified and experienced
professionals headed by the Managing Director of the Bank who has vast banking
experience bank and at the top there is an efficient Board of Directors for
making policies.
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 thorough a creative credit
policy. UCBL currently works with 329 correspondents covering 102 countries.
Moreover, the Bank has arrangement with a number of Exchange House at
Singapore, U.A.E, Oman, Qatar, and Kuwait to facilitate remittances from
expatriate Bangladeshis. UCBL offers various types of products and services
include Western Union money transfer, SMS banking, and online services, debit
card, credit card, dual currency VISA credit card, various deposit schemes etc.
They have total online banking
facilities along with no charge in the local transactions. They have 10 (Ten)
Automated Teller Machine (ATM) Booth in Chittagong Sylhet and Dhaka Division.
But they also have the contract with Dutch Bangla Bank Limited to use their
booths in all over Bangladesh by the UCBL customers. 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 thorough a
creative credit policy.
1.2 Vision
United
Commercial Bank Limited wants to be the market leader in the local banks in
Bangladesh. Their target is to be the highest profitable bank in local banking
sector.
1.3 Mission
To
provide quality services to customers
To
set high standards of integrity
To
make quality investment
To
ensure sustainable growth in business
To
ensure maximization of Shareholders’ wealth
To
ensure human resource development to meet the challenges of the time
1.4 Strategies
- To strive for customers best
satisfaction & earn their confidence - To promote organizational
efficiency by communicating company plans, polices & procedures openly
to the employees in a timely fashion - To cultivate a congenial working
environment - To diversify portfolio both the
retail & wholesale markets
1.5 Motto
- Put customer first
- Emphasize on professional
ethics. - Maintain quality at all levels
- Believe in being a responsible
corporate citizen - Say on the believes
- Foster participative management
1.7 Branch information of UCBL
Total Branch: 09
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UCBL has 105 Branches in
Bangladesh
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Year |
2006 |
2007 |
2008 |
2009 |
2010 |
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No. of Branches |
80 |
80 |
84 |
84 |
107 |
1.8 Special Features of the UCBL
- It
has been performing commercial banking activity and striving to introduce
dynamic Banking functions.
- It is
the pioneer in introducing and launching different customer friendly
deposit schemes to tap the savings of the people for channelizing the same
to the productive sectors of the economy. - For uplifting
the standard of living of the limited income group of the population the
Bank has introduced Consumer Credit Schemes by providing financial
assistance in the form of loan to the consumers for procuring household
durables, which have had encouraging responses. - The
Bank is committed to continuous research and development so as to keep
pace with modern technology. - The
operations of the Bank are fully computerized so as to ensure quick,
prompt flawless and services to the customers. - The
Bank has introduced camera monitor system (CCTV) to strengthen the
security services inside the Bank premises.
1.9 Credit Rating
United Commercial Bank Limited was
rated by Credit Rating and Information Services Limited (CRISL). In their
report on April 2009, they rated the Bank as AA- for long term and ST-2 for
short term. The gradation in long term rating has been done in consideration of
its good capital adequacy, appropriate asset quality, increased non funded
business and sound liquidity position. The short term rating indicates high
certainty with regard to the obligators capacity to meet its financial
commitments.
2.1
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Chairman |
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Vice-Chairman |
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Mr. |
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Chairman, EC |
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Hajee |
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Chairman, Audit Committee |
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Mr. |
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Managing Director |
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Mr. |
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2.2
Organizational Chart of United Commercial Bank Ltd.
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2.3 United Commercial Bank |
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3.1
Analysis and Interpretation of the Data
Main Departments of United
Commercial Bank Ltd.
3..2 PRODUCTS
& SERVICES OF UCBL
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UCB Multi Millionaire |
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UCB Money Maximizer |
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UCB Earning Plus |
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UCB DPS Plus |
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Western Union Money SMS Banking Serving |
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Online Service |
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Credit Card |
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One Stop Service |
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Time Deposit Scheme |
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Monthly Savings Scheme |
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Deposit Insurance Scheme |
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Travelers Cheques |
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Import Finance |
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Export Finance |
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Working Capital Finance |
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Loan Syndication |
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Underwriting and Bridge |
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Trade Finance |
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Industrial Finance |
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Foreign Currency Deposit |
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NFCD ( Non Resident |
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RFCD ( Resident Foreign |
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Consumer Credit Scheme |
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Locker Service |
3.3.1 UCB Multi
Millionaire
UCBL provides an opportunity to be a
millionaire at maturity by depositing a certain amount in monthly basis.
Maturity of this scheme:
- 5 – 10 years
- 7 – 12 years
- 10 – 15 years
Value at Maturity
- Minimum 10 lacs
- Maximum 1 crore
Special features
- 90% margin for loan against the
scheme - Minimum amount of loan is Tk.
50,000 - One person can open more one
scheme
3.3.2
UCB Money
Maximizer
UCBL provides an opportunity to get
double amount of deposited money at maturity by depositing in monthly basis.
Maturity of this scheme:
- 8 years
Value at Maturity
- Double of deposited amount
Special features
- 90% margin for loan against the
scheme - Minimum amount of loan is Tk.
50,000 - One person can open more one
scheme
3.3.3
UCB Earning
Plus
UCBL provides an opportunity to
withdraw an attractive amount of profit in every one or three months by
depositing a specific amount of money.
Maturity of this scheme:
- 3 years
- 5 years
Value at Maturity
- Minimum Tk. 50,000
- Maximum a multiplier of Tk.
50,000
Special features
- 90% margin for loan against the
scheme - Minimum amount of loan is Tk.
50,000 - 0.10% extra interest is provided
for elder person ( age: 55 year or above) - One person can open more one
scheme
3.3.4 UCB ONLINE
We are happy to announce that UCB has
stepped into the electronic banking age. Now, you can deposit and withdraw cash,
get mini statement, check balance and even transfer money within your accounts
and pay installments from any of the branches with 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.
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3.3.5 SMS Banking Service
The Application form must be filled |
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The account holder is solely responsible to stop misuse of Registration form should be submitted to the branch, where SMS Banking Service shall remain effective until otherwise
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By providing SMS Banking Service United Commercial Bank may |
3.3.6(a) CREDIT CARD
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3.3.6(B) Documents Required for UCB Card
1.
Salaried:
a)
Two
copies of passport or stamp size photograph
b)
Latest Salary
Certificate or pay slip
c)
Personal bank
statement for last 6 months
d)
TIN Certificate
photocopy
e)
Passport
photocopy (first 5 pages & last 3 pages)
2.
Self
Employed (Proprietorship):
a)
Two
copies of passport or stamp size photograph
b)
Trade License
photocopy
c)
Personal bank
statement for last 6 months
d)
TIN Certificate
photocopy
e)
Passport
photocopy (first 5 pages & last 3 pages)
3.
Self
Employed (Partnership):
a)
Two
copies of passport or stamp size photograph
b)
Trade License
photocopy
c)
Partnership deed
photocopy
d)
Personal bank
statement for last 6 months
e)
TIN Certificate
photocopy
f)
Passport
photocopy (first 5 pages & last 3 pages)
4.
Self
Employed (Limited Company):
f)
Two
copies of passport or stamp size photograph
g)
Memorandum of
Association Personal bank statement for last 6 months
h)
TIN Certificate
photocopy
i)
Passport
photocopy (first 5 pages & last 3 pages)
4. “UCB Auto Loan
Maintaining a car
now a days is no more a luxury but an essential part of daily working life to
add speed to its performance and taking this as view United Commercial Bank
Ltd. has introduced ‘UCB Auto Loan’. Potential users of personal cars can
contact any of the branches of the bank for availing the facility within
shortest possible time at very easy terms.
4.1 SCHEME INFORMATION
1.
Customer segment of auto loan: Any
Bangladeshi (single and jointly with other co-owners/co-borrowers e.g. spouse
also) to be more specific the falling group of people will be eligible for UCB
Auto loan.
Professional
(a)Doctor
b) Engineer
c) Accounts
Self-
Employed:
Businessman (in business at least
for 2 years), land lord having significant rent income etc
Salaried
people:
a) Employees of Govt/Semi
Govt/Autonomous body
b)) Employees of financial
institution
c) Employees of different public
limited company/private limited
Company having corporate
structure
d) Teacher of any
School/collage/university
4.2Purpose of UCB AUTO loan
Purchasable Car
Brand New or Reconditioned
Private
Car
Microbus
Jeep
Pick-up
van
Eligibility
Age
between 20 to 55 years
Permanent
employees of
§ Govt., Semi Govt. and Autonomous
Bodies
§ Banks and financial institutions
§ Teachers of University, School,
College
§ Executives/Officers of Multinational
Companies and renowned NGOs
Worthy
businessman having trade license, VAT certificate and TIN
Professionals
like Physicians, Engineers, etc.
Ceiling
Ø Ø Period
v Maximum 5 years for brand new
v Maximum 4 years for reconditioned
Down payment
Minimum
10 % for brand new
Minimum
20 % for reconditioned
Profit Rate or Interest
Rate
Private
Car, Microbus, Jeep – 15%
Van
– 16%
Insurance
It
is mandatory for the client to take an insurance against the car.
UCBL
specified some insurance company from where the clients have to take the
insurance for their car.
Special Feature
Registration cost and comprehensive
insurance cost can be included in the total cost
Nationality
Bangladeshi
only
Minimum income
TK.
20000 for salaried individuals and TK40000 for the business man.
Loan size:
TK.2000000
For both brand new& Recondition cars.
Debt Equit ration
Loan
amount will not exceed 80% of the vehicle price.
Maximum term of loan:
05
(five) years.
Repayment method:
Equal
monthly installments based on the tenor of the loan
Security/collateral
A. Hypothecation over the car
(registration of the vehicle in the joint name of the bank)
B. First part comprehensive insurance
of the car.
C. Post dated cheques based on the
loan tenor. D.
Additional security in the form of personal guarantee may be obtained of.
E. Parents or an individual having
minimum solvency/income not less than that of the borrower supported by income proof
Legal documents
A.
Duly filled of
car loan application form terms and condition signed.
B.
Demand Promissory
Note.
C.
Letter of set-of.
D. Irrevocable letter of authority to repossess the vehicle.
E. Ownership transfer form signed by customer.
F. Letter of offer with full terms and conditions
stated therein and dual accepted.
Disbursement mode
After loan approval vendor will
receive a facility confirmation letter. On the basis of that vehicle will be
registered in joint name of the bank. Upon submission of registration vendor
will be paid the total value of the vehicle in the form of pay order. Customer
should pay the down-payment/total value prior to issuance of faculty
confirmation letter
Verification of personal details and
quotation.
A. Details of an applicant
to be verified of a third party/internal assessment officers before an approval accorded
C. Borrower and
guarantors details both present and permanent all telephone numbers of
residence office and mobile number.
D. Personal net-worth
statement.
Proper substantiation of income will
be mandatory. All or any of the following original/true copy of original
documents are accepted for the purpose.
A. Bank statements for minimum 6
months.
C. Any other document that may stand
as a proof of income such as last tax return deed of enfant agreement etc.
5. Different Consumer Scheme of
UCB Ltd.
- Doctor’s
Loan of UCB Ltd.
This is a new product of UCB. With
the emerging concept of global village the medical profession is becoming
sophisticated. In our country the number of doctors is higher than other
professionals. The doctors need money to
purchase modern medical equipments to provide better services to the patients.
UCBL launched the doctor’s loan to promote the health services of our country
Eligibility of applicants:
1)
Bangladeshi
citizen
2)
Minimum
graduate in medical science
3)
Allopathic
medical professionals
4)
Adequate
earning capacity to service the loan
5)
Within
25 to 65 years
Purpose
of the loan:
1) To set up and renovate chambers
2) To purchase medical equipments
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Loan
Against salary of United commercial Bank Ltd.
Life is full of
surprises. We often tumble into unforeseen cost that leaves the fixed income
people unprepared. To support the fixed income people in those sudden events
UCB launched “Loan against salary”. This product is tailored to provide loan to
fixed income people against salary to mitigate any emergency need.
Eligibility of the applicants:
Only salaried employee within the age
limit of 21-65 years can apply for this loan.
Security and documents:
I.
24
post dated cheques.
II.
Letter
of undertaking of the employer to deposit monthly installments directly to the
bank and to adjust the outstanding loan amount from the employee’s terminal
service benefits in case of early separation from the current organization
III.
Terminal
service benefits are to be lien against the loan.
Loan features:
Loan period———————3; Interest rate———————17%
Service charge——————1% on the loan amount
Risk
fund————————1% on the loan amount
Remarks: Loan against Salary is a special
retail product united commercial bank limited which is only for Service
holder’s .In the last 2 years disbursement amount is not satisfactory. However
the bank should try to attract new customers by altering this loan features
such as by better pricing & repayment periods. Recovery percentage under
this loan is very good.
·
Any purpose loan of UNITED COMMERCIAL Bank Ltd.
United commercial Bank
introduces this loan scheme very recently. The loan scheme is under the retail
credit scheme of UCBL.
Purpose of the loan:
The purpose of the loan is basically to meet the need of cash
money in the time of emergency.
Eligibility of the applicants:
Any people with a
stipulated fixed income within the age limit of 25-65 years can apply for this
loan.
Loan
features:
Security and
documents:
One socially recognized personal guarantor
Letter of introduction from the employer
Salary certificate
Application for the loan with specification of the
purpose of the loan
Ø Ø Marriage Loan
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This scheme is to meet the |
Travel Loan
This scheme
is for meeting fund for travel purpose of salaried person in Govt./Semi govt.
/Autonomous bodies/ Multinational Co./Banks/Insurance/Financial Inst./Educational
Inst. with confirmed 3-years service a
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Education Loan:
Purpose of the loan: For educational purposes like study in abroad or within the country.
Eligibility of the
applicants:
Any people with a
stipulated fixed income within the age limit of 25-65 years can apply for this
loan.
Loan features:
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Loan Limit and Period of Loans |
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Required |
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01. |
Employer Certificate |
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02. |
Photocopy of Tin Certificate, if any |
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03. |
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Security
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01. |
Personal guarantee from an individual having means, standing and |
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02. |
Undated cheques in favor of the Bank covering the |
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5.1
Required documents for the scheme
1)
Photograph of client (Two Copies) attested by the
client
2)
Quotation of Car accepted by client
3)
Photograph of two guarantors (Two Copies each)
4)
Income Expenditure Statement with supported
documents
5)
Visiting Card (Client & Guarantors)
6)
CIB of client and Guarantors
7)
Salary Certificate of client & guarantors
8)
TIN certificate
9)
Copy of National ID Card for client & guarantors
10) Net worth
statement of client and Guarantors
11) Bio-data of
the client & guarantors
12) Other
Income with supported documents
13) Other
Bank’s Liability
14) Others Bank
statement
15) Memorandum
& Article of Association for Business purpose car loan
16) Company profile, if applicable
17) Trade
license
18) 3 years financial statement
19) Vat registration certificate
Performance Analysis
6.1
Portfolios
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UCBL Total Investment |
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Sl. NO. |
Modes of Investment |
Taka in million |
Percentage of Total |
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1 |
UCB Money Maximizer |
30.3 |
6.24 |
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2 |
UCB Multi-millionaire |
32.5 |
6.70 |
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3 |
UCB Earning Plus |
37.2 |
7.66 |
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4 |
UCB DPS & DPS Plus |
35.1 |
7.23 |
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5 |
UCB Auto Loan |
54.1 |
11.15 |
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6 |
UCB Home Loan |
259.2 |
53.41 |
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7 |
UCB Any-purpose Loan |
21.6 |
4.45 |
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8 |
Other Investment |
15.3 |
3.16 |
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Total |
485.3 |
100.00% |
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6.2 COMPARISON WITH OTHERS
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Bank Name |
Interest Rate % (Per Annum) |
Range of loan amounts of total cost |
Loan maximum limit (TK/-) |
Period |
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Brand new |
Recondition |
Brand new |
Recondition |
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United Commercial Bank Ltd. |
15% |
80% |
20,00,000 |
20,00,000 |
5 years |
5 years |
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Mercantile Bank Ltd. |
16% |
75% |
20,00,000 |
15,00,000 |
6 years |
5 years |
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Trust Bank Ltd. |
14% |
75% |
20,00,000 |
20,00,000 |
5 years |
5 years |
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Dhaka Bank Ltd. |
15% |
80% |
20,00,000 |
20,00,000 |
6 years |
6 years |
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One Bank Ltd. |
16% |
80% |
20,00,000 |
20,00,000 |
6 years |
5 years |
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HSBC Bank Ltd. |
15% |
75% |
20,00,000 |
20,00,000 |
5 years |
5 years |
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Standard Chartered Bank Ltd. |
15% |
90% |
20,00,000 |
20,00,000 |
5 years |
6 years |
of UCB Auto Loan from 2006 to 2010(November)
This Line chart shows us the
financial growth Trend of the “UCB Auto Loan” from 2006 to 2010(November). And
we can find that the Trend is gradually increasing from year to year. That
Means it is growing from 2006 to
2010.
Frequency Table
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Name of the respondents |
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
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Gazi Abdur Rob |
1 |
12.5 |
12.5 |
12.5 |
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Lutfor Rahman |
1 |
12.5 |
12.5 |
25.0 |
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Mawlana Kazi Mujibur Rahaman |
1 |
12.5 |
12.5 |
37.5 |
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Md. Shamim Istiaq |
1 |
12.5 |
12.5 |
50.0 |
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Md. Zillur Rahman Mridha |
1 |
12.5 |
12.5 |
62.5 |
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Mr. Md. Iftakher Hossain Harun |
1 |
12.5 |
12.5 |
75.0 |
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Mr. Nazmul Kabir |
1 |
12.5 |
12.5 |
87.5 |
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Mr. Syed Golam Mawla |
1 |
12.5 |
12.5 |
100.0 |
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Total |
8 |
100.0 |
100.0 |
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In
this survey I have chosen eight individual people, those have taken the “UCB Auto Loan” in year 2010 by
using stratified sampling method.
Occupation
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Frequency |
Percent |
Valid Percent |
Cumulative Percent |
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Businessman |
7 |
87.5 |
87.5 |
87.5 |
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Service-holder |
1 |
12.5 |
12.5 |
100.0 |
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Total |
8 |
100.0 |
100.0 |
In this Survey eight respondents were
chosen & they have different occupations. From them 87.5% Businessman &
12.5% Service-holder. It is revealing from the study that most of the investors
of UCB Auto Loan’s are Businessman.
- Have you taken car loan from which bank?
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Frequency |
Percent |
Valid Percent |
Cumulative Percent |
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UCBL |
8 |
100.0 |
100.0 |
100.0 |
The purpose of the study was
to indentify whether the loan borrowers of this scheme have taken any loan from
the other banks for the same reason. However it is found that none of the loan
borrowers have taken loan from the other bank except United Commercial Bank Limited. Because the Clients
are loyal to the Bank, they have to do some other transactions with the bank
& they want to make a good relation with the bank.
- Did you have any account in this bank?
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Frequency |
Percent |
Valid Percent |
Cumulative Percent |
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Yes |
8 |
100.0 |
100.0 |
100.0 |
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All respondents said ‘yes’,
they had to open a bank account in United Commercial
Bank Ltd. Because it is mandatory & it also provides some help to the
Clients & the Bankers for doing any kind of transition.
- Was
it mandatory to have an account in this bank?
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Frequency |
Percent |
Valid Percent |
Cumulative Percent |
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Yes |
8 |
100.0 |
100.0 |
100.0 |
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All respondents said ‘yes’, opening a bank account was mandatory.
- Did
you have to full fill the bank’s requirements for this loan?
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Frequency |
Percent |
Valid Percent |
Cumulative Percent |
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Yes |
8 |
100.0 |
100.0 |
100.0 |
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All respondents said ‘yes’
& full filling the bank’s requirements were mandatory not only for UCBL but
also for all banks. And this rule remain unchanged now on.
- What
was your monthly income level?
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Income level |
Frequency |
Percent |
Cumulative Percent |
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40,000 TK/- |
1 |
12.5 |
12.5 |
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50,000 TK/- |
1 |
12.5 |
25.0 |
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60,000 TK/- |
1 |
12.5 |
37.5 |
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70,000 TK/- |
1 |
12.5 |
50.0 |
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80,000 TK/- |
2 |
25.0 |
75.0 |
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90,000 TK/- |
1 |
12.5 |
87.5 |
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More than 90,000 TK/- |
1 |
12.5 |
100.0 |
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Total |
8 |
100.0 |
This Pie chart shows that the
income level of the respondents is differ from each other. It is found that all
of the respondent’s monthly income is more than 40,000 TK/-.
What was the
purpose of taking this loan?
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Frequency |
Percent |
Cumulative |
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Business |
6 |
75.0 |
75.0 |
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Personal |
2 |
25.0 |
100.0 |
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Total |
8 |
100.0 |
It is found that the rate of
the purpose of taking this loan 75% Business pursues & 25% Personal
purpose. That means most of the investors under this UCB Auto Loan used this
scheme used it as the commercial purpose.
- How
many times you had taken this loan?
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Frequency |
Percent |
Cumulative Percent |
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1 time |
4 |
50.0 |
50.0 |
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2 times |
3 |
37.5 |
87.5 |
|
|
3 times |
1 |
12.5 |
100.0 |
|
|
Total |
8 |
100.0 |
||
It is found that 50% of
respondents had taken this loan for 1 time, 37.5% for 2 times & 12.5% for 3
times. It differs from their needs of the vehicle.
- You
had taken loan for how many cars?
|
Number of Cars |
Frequency |
Percent |
Cumulative Percent |
|
|
1 |
4 |
50.0 |
50.0 |
|
|
2 |
3 |
12.5 |
62.5 |
|
|
3 |
1 |
12.5 |
100 |
|
|
Total |
8 |
100.0 |
||
It is found that the
respondents had taken loan for as many cars as their need. The pie chart shows that 50% had taken by one
respondents & rest of the respondents had taken at the rate of 12.5%.
- For
which type of vehicle you had taken this loan?
|
Frequency |
Percent |
Cumulative Percent |
||
|
Private Car |
5 |
62.5 |
62.5 |
|
|
Jeep |
1 |
12.5 |
75.0 |
|
|
Microbus |
2 |
25.0 |
100.0 |
|
|
Total |
8 |
100.0 |
||
United Commercial Bank Ltd. gives Car loan for 3 types of
vehicle- Private Car, Jeep & Truck. It is found that according to the
Borrowers need they had taken loan for different kinds of vehicles. And the
percentage is 62.5% for Private Car, 12.5% for Jeep & 25% for Truck. So the
highest rate of loan browed for the Private Car.
- Had
you taken loan for-
|
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
|
Brand new car |
2 |
25.0 |
25.0 |
25.0 |
|
|
Recondition car |
6 |
75.0 |
75.0 |
100.0 |
|
|
Total |
8 |
100.0 |
100.0 |
||
From the survey it found that
the most of the loan borrowers had taken this loan for commercial purpose &
as we now the intention of all commercial organization is how minimize cast. So
in here we found that the percentage rate for the Recondition Car is high 75%
& only 25% for the Brand new Car. Though in our country people are
naturally like to use the Recondition car, so
That may be another reason
behind this highest rate.
- What
was the profit/interest rate for this loan?
|
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
|
15% |
8 |
100.0 |
100.0 |
100.0 |
|
All respondents said that
they had taken the loan in 15% rate of interest/profit from the UCBL. Here we
found that the rate is fixed but sometimes it can be changed according to the
roles under the purpose of taking loan, that mean Personal purpose &
Commercial purpose. In Commercial purpose the rate should be higher that the
Personal purpose. However here the respondents said
the rate is fixed. It all
depends on the Banks roles & regulations.
- What
was the range of loan amount on total cost?
|
Loan-able fund on |
Frequency |
Percent |
Cumulative Percent |
|
|
90% |
2 |
25.0 |
25.0 |
|
|
80 % |
3 |
37.5 |
62.5 |
|
|
70% |
1 |
12.5 |
75.0 |
|
|
60% |
2 |
25 |
100.0 |
|
|
TOTAL |
8 |
100.0 |
||
Maximum time bank sanctions
80% loan on total car-purchase amount but only for Brand-new car they allow 90%
loan on total car-purchase amount.
- What
was the loan amount (TK. in Lac)?
|
(Tk. in ‘Lac’) |
Frequency |
Percent |
Cumulative Percent |
|
|
1 to 5 |
1 |
12.5 |
12.5 |
|
|
5 to 10 |
5 |
62.5 |
75.0 |
|
|
10 to 15 |
1 |
12.5 |
87.5 |
|
|
15 to 20 |
1 |
12.5 |
100.0 |
|
|
Total |
8 |
100.0 |
||
It is found that the highest loan amount is not-more than 20, 00,000
Tk/-. Car is the long term asset, so investors had to invest a handsome amount
of money for this Investment Scheme.
- What was the period limit of the
loan?
|
Frequency |
Percent |
Cumulative Percent |
||
|
4 years |
4 |
50.0 |
50.0 |
|
|
5 years |
4 |
50.0 |
100.0 |
|
|
TOTAL |
8 |
|||
50% respondents said that the
period limit of the loan is 4 years & bank allow highest 5 years period
limit.
- What
was the rate of Down payment or 1st installment?
|
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
|
20% |
8 |
100.0 |
100.0 |
100.0 |
|
All respondents said that the Down payment or
1st installment rate was 20%.
- Did
you paid installment-
|
Frequency |
Percent |
Cumulative Percent |
||
|
Yearly |
2 |
25.0 |
25.0 |
|
|
Monthly |
6 |
75.0 |
100.0 |
|
|
Total |
8 |
100.0 |
||
All respondents said that the UCBL gave them
the opportunity to pay the installment in yearly or monthly basis. But for that
they have to follow the banks instructions.
- Did
you paid all installment in due time?
|
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
|
Yes |
8 |
100.0 |
100.0 |
100.0 |
|
Here is no Loan borrowers have been found that which payments were
due. Because they know that if they had any due then they have to bear some
penalty & its rate is 1% to 1.5%.
- What
will be your satisfaction level for this loan?
|
Frequency |
Percent |
Cumulative Percent |
||
|
Excellent |
6 |
75.0 |
75.0 |
|
|
Good |
1 |
12.5 |
87.5 |
|
|
Moderate |
1 |
12.5 |
100.0 |
|
|
Total |
8 |
100.0 |
||
Here it is found that the
satisfaction level of the Clients differs from each other. The Clients
satisfaction level depends on many reasons. Like as-
Service
of the bank
Length
of the process
Excess
papers of documents
3rd
party’s involved etc.
8. SOWT ANALYSIS
SOWT means-
Strength
Weakness
Opportunity
Threat
According to my survey I am going to
find out the SWOT analysis of “UCB Auto Loan” of United Commercial Bank Ltd.
8.1 Strength
Ø It provides a average range of loan
& interest rate
Ø It provides a sweet able time limit
Ø It provides some special features
Ø It gets some advantages to attract
the client because of religious perspective
8.2 Weakness
v Some commercial banks charge less
interest rate than this bank
v Some commercial banks provides more
rage of loan amount than this bank
8.3 Opportunity
Bank provides a pleasant service for
the customers
It providing some special features,
but they can offer some extra features
8.4 Threat
Some
foreign banks provides some special features
Low
Investors/ Clients for this scheme
Flowing
the same rate for this scheme from the last 3 years
9. Findings
It
is a lengthy process.
To
get the loan Client have to open an account in the bank
Bank
provides average range of loan amount.
In
yearly they get low Investors/ Clients for this scheme
Bank
is flowing the same rate for this scheme from the last 3 years.
The
Banks in Bangladesh has faces a lot of illegal pressure from Political persons,
Directors and Management of the Bank for approval of loan. In that cases UCBL
also are bound to approve the loan without any assessment and rationality for
them.
The
risk managers have often insufficient time for credit risk management. Huge
workload and hurries for loan approval prevent them from through assessment.
So, it is very troublesome to manage the risk in a prudent manner for the risk
managers.
A
third party (CPV- Contract Person Verification) verifies the account holders or
grantors all documents as the relevant required document are perfect or not
perfect. In CPV there is no one for bank and customers. Banks have to depend on
CPV verification to approval the loan.
Recommendations
The
process of sanctioning an auto-loan is very time consuming. Management should
give more effort to reduce the time of processing a loan.
The
branch manager should have some discretionary power to sanction the Auto loan.
They
should renew their Scheme rate by proper authorization of Bangladesh bank.s
They
should create awareness among the new investors for this Scheme by providing
some advertisement in newspaper, magazine or in other media.
The
Auto Loan Policy of the Bank is very complicated. Bank need to make it easy and
understandable. So that all credit officer can understand the instruction and
follow this instruction correctly at the time of risk management.
The
management must be careful to sanctioning that auto-loan which is recommended
by powerful bodies. Because these loans sometimes become more risky.
To
reduce the auto-loan risk the original documents of the client must be verified
thoroughly. If manager sanction the auto-loan without the verifying original
documents, that may involves more risk.
To
reduce the default risk the repayment capacity of loan of the auto-loan client
should be properly investigated. Otherwise, here have the chance to default.
Bank
has a few numbers of tools and techniques such as DBR (Debt-Burden Ratio) to
assessment the auto-loan risk. Bank need to introduce new and advance risk
assessment tools and techniques.
11. CONCLUSION
It is a great pleasure for me to
have practical exposure in United Commercial Bank Limited, Uttara Branch.
Because without practical exposure it could not be possible for me to compare
the theory with practice, and it is well established that theory without
practice is blind. I have completed my internship in Uttara Branch of United
Commercial Bank Limited. During the practical orientation, I have observed the
function of Investment Banking, and overall banking activities that comply with
the sound business operations of United Commercial Bank of Bangladesh.
Its performance specially based on
prompt and swift services is busier than other department of United Commercial
Bank Limited of Uttara Branch & the Bankers are maintaining a peaceful
& reliable relation with the clients or customers. According to my survey I
can find that the potential customers are the Businessmen whose motto to the
Car loan for full fill their business purpose or need. Naturally everybody
organization has some problems but the organizations are not stop their
activities, they must go on. I hope the Bank can find out their problems &
solve it as soon as possible. Thought the more and more customers are coming in
the branch through this department resulting deposit of the branch is
increasing day to day.
In a word, the performance of United Commercial Bank Limited, Uttara
branch is growing rapidly and the volume of remittance is increasing
effectively.
At last it can be said that, United
Commercial Bank Limited will be turned into a dynamic Islamic Bank in the
country and will expand its Banking Business all over the country to provide
the banking services to the groups including the deserving Economic groups of
the society who have no easy access to the banking channel. This will help for
alleviation of the poverty, income generation, creation of employment
opportunity, up-gradation of the standard of living of the lower economic
groups, which will also contribute to the emancipation of national economy of
the country.