Report on UTTARA Bank Limited
Historical Background of Uttara Bank limited:
?Uttara Bank limited
Had been a nationalized bank under the Bangladesh Bank nationalized order 1972 formally known as Eastern Banking Corporation limited.
?The Bank started functioning on end from 28.01.1965.
?The Uttara Bank was converted into Uttara Bank limited as a public limited company in 1983. June 30th.
? Uttara Bank limited was incorporated as a banking company on 29.06.1983.
?The bank floated its share in the year 1984.
?It has 629 foreign representatives all over the world.
?In the initial stage its authorized capital was 20 cores paid up capital were 10 cores and Government bought 50 lac shares.
?The bank current capitals are given below.
?Authorized capital:
2, 00,000 Ordinary shares of TK 100 each.
=200,000,000
?Issued capital:
100,000 ordinary shares of TK 100 each for cash
=100,000,000
?subscribed and paid up capital.
9, 98,324 ordinary shares TK 100 each =99.832, 400
?SOURCE –ANNUL REPORT OF UBL 2005.
(Page-26)
*Paid up capital as per share holders category.
| 31-12-2005 | 31-12-2004 | |||||
| Classification of share | No. of shares | Percentage | Amount | No. of shares | Percentage | Amount |
| *Government of The peoples Republic Bangladesh | 20 | 0.002% | 2,000 | 175 | 0.02% | 17,5000 |
| *Bank and financial institution | 69,955 | 7.007% | 69,95.500% | 54,445 | 5.45% | 54,44,500 |
| *General public | 9,28,349 | 92.991% | 9,98,34,900 | 9,43,704 | 94.53% | 9,43,70,400 |
| Total | 9,28,324 | 100.00% | 9,9832400 | 9,98,324 | 100.00% | 9,98,32,400 |
?SOURCE –ANNUL REPORT OF UBL 2005.
?Uttara Bank limited undertakes all types of banking transactions to support the development of trade and commerce in the country. The bank gave special emphasis on Export-import, trade finance, SME finance, house repairing and others consumers’ assistance sectors.
?To prove client services in respect of international trade it has established wide correspondents banking relationship with local and foreign banks covering major trade and financial centers of the world.
?Uttara Bank limited is a banking company with its head office.
90, Motijheel commercial area Dhaka-1000/ Bangladesh.
PABX: 9551162, FAX: 02-7168367, cable banker
Email: uttara@citecho.net, ublmis@citechco.net.
Web site:-www.uttarabank-bd.com
Vision:
?To become a leading Banking institution and to play a pivotal role in the development of the country.
Banks Mission.
*Continuous improvement in our Business policies.
*Cost reduction integrations of technology at all level.
UBL corporate culture:
*Employees of UBL share contain common values which help to create a UBL culture.
*The client comes first.
*Search for professional excellence.
*Quick decision making.
*Flexibility and prompt response.
*A sense of professional ethics.
Bank’s Efforts are focused:
?On delivery of quality services in all crease of banking activities with the aim to add increased value to share holders’ investment and offer highest possible benefits to their customers.
Bank’s strategies:
*To rise up capital up to TK. 300 million by 206.
*To strive for customer satisfaction through quality control and delivery of timely services.
*To review and update polices, procedures and practices to enhance the ability to extend better services to customers.
Corporate Governance:
*The organizational structure and corporate governance of Uttara bank limited reflect the determination. To establish, sustain and increase it strength for a strong base as a customer oriented bank with a transparent management.
BORD OF DIRECTORS
*The board of directors consists of 15 members.
*The board of directors is the supreme body of the bank.
.
Executive Committee
?All routine matters beyond the delegated power of management are decided upon by or routed through the executive committee, subject to ratification by the board of directors.
Audit committee: –
?In line with the guide lines of Bangladesh bank a two member audit committee of board of director. Has been formed to assists the board in matters related to audit and internal control system of the bank.
Deposit:
*At the close of 2005 total deposits stood at TK. 36891.9 million against TK. 34615.2 million in the previous year. Average deposit per Branch stood at 18.66 percent against at TK. 174.8 million in the previous year.
loan and Advances:
*Total loans and Advances of the bank stood at TK. 21851.5 million during the year as compared to TK against 18601.0 million during the previous year revision am increase by 17.47% Average loan per Branch stood at TK 110.4 million.
*The bank disbursed loan of TK 109.8 million in this sectors in 2005 under three special project names
1. Uttaran small Business loan scheme.
2. Uttaran Consumer loan scheme.
3. Uttaran House repairing loan scheme.
?SOURCE- ANNUAL REPORT 2005 OF UBL.
PERFORMANCE OF UTTARA BANK LIMITED
?Share capital:
?In 2005 the authorized capital of Uttara bank limited was Tk.200 million and paid up capital was Tk.99.8 million. The total number of share holders was 5.351. The Government held total 69.975 shares worth Tk6, 997.500 and remaining 5,346 private share holders held total 928,349 shares worth Tk92, 83, 4900.
?Reserve fund:
?The reserve fund of bank increased by-7.46% to Tk, 1765.2 million during the year as against Tk, 1642.6 million.
?Capital Adequacy:
?At the end of the year 2005, the actual capital of the bank stood at Tk, 2,004.1 million against required capital of Tk, 1,811.1 million. Which show ill surplus capital of Tk, 193.0 million.
?SOURCE- ANNUAL REPORT 2005 OF UBL.
Sectors wise position of loans and Advances as on 31-12-2005.
| Sectors of loans and Advances | Public/Nationalized | Private | Total |
| *Agriculture
1. Productive 2.Fertilizer |
16.4 | 16.4 | |
| *Industrial term lending | 2,982.7 | 2,982.7 | |
| *Working capital:
1. Jute industry 2. Other working capital |
637.7
837.4 |
637.7
837.4 |
|
| *Export:
1. Jute and jute goods 2. Other goods and commodities |
137.7
1,151.1 |
137.7
1,151.1 |
|
| *Trade and commercial lending:
1. Jute trading 2. Commercial |
96.1 | 25.8
8,359.7 |
25.8
8,455.8 |
| *Special programmer:
1. Small and cottage industry 2. Personal loan scheme 3. Consumer credit scheme |
252.0
15.9 1675.2 |
252.0
15.9 1675.2 |
|
| *Urban Housing | 165.8 | 880.5 | 1,046.3 |
| *Officers and staff House building loan | 295.8 | 295.8 | |
| *Others | 4,321.7 | 4,321.7 | |
| Total | 261.9 | 21,589.6 | 21,851.5 |
|
INVESTMENT: –
?Head wise position of Banks invested fund at the end of year 2005 was given below-
| Heads of investment | Taka in million |
| Treasury Bills and Bonds Debenture (in purchase price) prize | 9,674.6
311.0 10.0 |
| Ordinary shares:
Eastern Bank limited 34.5 Karmasangsthan Bank 10.0 I C B (Approved)07.9 |
|
| 4. CDBL 01.0 | |
| 5. Other companies 13.1 | 66.5 |
| Total | 10,062.1 |
Risk Management: –
?Bangladesh Bank has defined five core risks in the management of bank and has provide necessary guide lines for prevention there of. These five core risk are:
Credit risk management: –
?The loan application assessment process starts at branch level by relationship manager through zonal office and end at credit risk management unit of local office.
Asset.
Liability management: –
?Assets liability executive committee sits at least one in a month to review the economic and money market status risk as a whole.
Foreign Exchange risk management: –
?The task of reconciliationof all transactions initiated by treasury department entrusted to a back office and all foreign exchange transactions are evaluated at market price.
Prevention of money laundering:
?Manual for prevention of money laundering has been established as per Bangladesh bank guideline and all types of steps have been taken to prevent the acts of money laundering.
Internal control and compliance: –
?under takes periodical and special audit of the branches and departments at head office for review of the operation and compliance of statutory requirement.
Import and Export Business: –
?Export Business handled by the bank during the year 2005 amounted to TK, 18,191.8 million as against TK, 19,133.1 million of the preceding year.
On the other hand import business stood at TK, 23,092.4 million as compared to the volume of TK, 24080 million in 2004.
Foreign remittance: –
?The volume of foreign remittance in the year 2005 stood at TK, 27,276.0 million as compared to TK, 19,710.2 million in preceding year registering on in crease of 38.39 percent.
?SOURCE- ANNUAL REPORT 2005 OF UBL
Distribution of profit: –
?The board of director places its proposal for making following provision and appropriation of pre tax profit for the year 2005.
| Profit and loss appropriation A/C -05 | Amount (in TK,) | Amount in Taka. |
| Pre-tax profit (in clouding retained )
Provision for taxation General reserve fund Proposed bonus share Proposed cash dividend Retained earning |
–
TK, 640,000,000.00 TK, 20,000,000.00 TK, 99,832,400.00 TK, 19,966,480.00 |
TK, 783,3,68,419.00
TK, 779,798,880.00 |
| TK, 35,69,539.00 |
?SOURCE- ANNUAL REPORT 2005 OF UBL
Dividend: –
? The board of directors of uttara bank limited recommends 20% cash dividend and 100% stock dividends (one bonus share for one share) for the year ended december-05 subject to approval of the 23rd, Annual general meeting.
Modernization of the branches: –
?At present (31-04-2007) the bank has 202 branches all over the country through which it carries all its banking activities. All the branches of the bank are operating under computer system by using the banks own software in day to day banking. Moreover eleven separate E-mail services are running at head office and the bank has brought 62 branches under internet system and 26 branches under swift for ensuring fruitful service to transient letter of credit, fund and message with low cost bank has introduced his own website address is www.uttarabank-bd.com.
VIHICLES: –
?The total number of the vehicles of the bank in the year 2005 was 103 as against 102 in the year-04 vehicles are generally use for providing transport, facilities of the executives and to carry cash from feeding branches to other branches and vice versa. The total expenditure in this sector in 2005 was TK, 28.3 million as against TK, 25.6 million in the year 2004.
BANK OWN PREMISES: –
?A magnificent 18 stored banks own building located at the hub of Motijheel commercial area within the metro pliton city. Different department of head office and corporate branch have been functioning in the same building covering 10 floors. Reaming eight floors have been rented different insurance company and commercial enterprise.
?Local office: -Eastern plaza branch, hotel Ishaka branch, dar-us-salam road branch.
?Lease financing unit eastern tower building.
?Zonal office: -Khulna, shaheb bazaar branch in Rajshahi.
PRODUCT AND SERVICES: –
?The bank has an array of tailor mode financial products and services, special deposit products are fixed deposit receipt for 3 month, 6 month 12 month and above 2 years scheme special loan product are consumer credit scheme personal loan scheme for salaried officials small enterprises marriage scheme education scheme e t c.
TRAINING AND HUMAN RESOURCES: –
?The training institute of the bank situated at awlad hossain market. Tejgaon, Dhaka nicely decorated and equipped with the in strumpets for a qualitative change in human resources of the bank. Besides a number of executives and officers were sent to various training in situation in clouding (BIBM) and aboard for higher training.
As on 31-12-2005 the total manpower of the bank in different grades was as under
| Executives (asstt. General manager & above )
Officers Asstt. Officers Other |
90
19,95 5,24 6,56 |
2.76%
61.10% 16.05% 20.09% |
| Total | 3,265 | 100.00% |
?SOURCE- ANNUAL REPORT 2005 OF UBL
AUDIT AND INSPECTION: –
?Experienced officials regularly audit and inspect the activities of the bank through out the year 2005 during the year 2005 Bangladesh bank audit and inspection team undertook audit and inspection works in our 24 branches in clouding lease financing unit and during the some year banks own internal audit teams completed their audit and inspection work of the 198 branches and also at different departments of head office.
AUDIT COMMITTEE OF THE BORD OF DIRECTORS:-
?The board of directors set the goal and reviews the performance of the bank on a regular basis. There is a audit committee comprises three members of the board of directors during the year the audit committee held six meetings. In these meetings the audit committee review the inspection report of different branches of the bank conducted by the banks internal inspection team from time to time and examined the financial statement of the bank.
BOARD MEETING :-
?In order to take decision and formulate policies with regard to different banking affairs twenty seven meeting of the board of directors and fifty one meetings of the board of the executive committee where held during the year 2005.
Highlights on the overall activities of the bank for the year, 2005 and 2004.
| Particulars | 2005
Taka |
2004
Taka |
| Paid-up-capital | 99,832,400 | 99,832,400 |
| Total capital | 2,004,050,376 | 1,740,685,078 |
| Capital surplus | 192,973,376 | 187,806,078 |
| Total Assets | 42,062,201,299 | 39,700,932,623 |
| Total Deposits | 36,891,910,320 | 34,615,240,208 |
| Total Loans & Advances | 21,851,539,700 | 18,601,012,262 |
| Total Contingent liabilities & other commitments | 8,538,820,824 | 7,883,579,500 |
| Credit Deposit Ratio (%) | 59.23% | 53.74% |
| Ratio of classified loans & advances to total loans & advances (%) | 16.15% | 22.14% |
| Profit after tax & provision | 142,590,008 | 100,556,205 |
| Amount of classified loans during the current year | 1,080,500,000 | 882,100,000 |
| Provision kept against classified loans & advances | 853,751,185 | 954,218,525 |
| Provision surplus | 126,736,185 | 33,432,475 |
| Cost of Fund (%) | 4.14% | 4.4% |
| Interest earning Asset | 32,723,645,096 | |
| Interest non-earning Assets | 32,723,645,096 | 32,344,967,516 |
| Return on Investment (ROI) % | 9,338,556,203 | 7,355,965,107 |
| Return on Assets (ROI) % | 8.77% | 7.17% |
| Income from Investment | 0.34%882,318,102 | 0.25% |
| Earning per share (Taka) | 142.83 | 917,782,570 |
| Net income per share (Taka) | 142.83 | 100.73 |
| Price Earning Ratio (Time) | 19.68 |
?SOURCE- ANNUAL REPORT 2005 OF UBL.
FIVE YEARS BANK POSITION AT A GALANCE.
| Sl. No. | Particulars | 2005 | 2004 | 2003 | 2002 | 2001 |
| 01. | Authorized Capital | 200.0 | 200.0 | 200.0 | 200.0 | 200.0 |
| 02. | Paid-up Capital | 99.8 | 99.8 | 99.8 | 99.8 | 99.8 |
| 03. | Reserve fund other reserves | 1765.2 | 1642.6 | 1597.0 | 1451.9 | 1204.9 |
| 04. | Shareholders’ equity | 186 5 .0 | 1742.4 | 1696.8 | 1551.7 | 1304.7 |
| 05. | Required capital | 1811.1 | 1552.9 | 1533.5 | 1575.9 | 1778.7 |
| 06. | Actual capital | 2004.0 | 1740.7 | 1684.3 | 1727.5 | 1493.8 |
| 07. | Deposit | 36891.9 | 34615.2 | 31476.6 | 29153.9 | 28429.9 |
| 08. | Advance (Gross) | 21851.5 | 18601.0 | 18786.3 | 22938.3 | 24187.0 |
| 09. | Advance-deposit ratio | 0.59: 1 | 0.54:1 | 0.60:1 | 0.78:1 | 0.85:1 |
| 10. | Investment | 10062.1 | 12794.0 | 9883.9 | 6739.4 | 3691.5 |
| 11. | Guarantee Business | 1781.4 | 1768.1 | 1890.4 | 1834.9 | 2065.6 |
| 12. | Export Business | 18191.8 | 19133.1 | 20728.9 | 21036.5 | 19387.2 |
| 13. | Import Business | 23092.4 | 24080.0 | 26204.9 | 27094.4 | 29633.1 |
| 14. | Foreign remittance | 27276.0 | 19710.2 | 14030.2 | 8552.2 | 6315.9 |
| 15. | Gross Income | 4265.0 | 3820.9 | 3821.4 | 3918.3 | 3819.1 |
| 16. | Gross expenditure | 2650.4 | 2611.2 | 2707.4 | 2606.5 | 2236.2 |
| 17. | Gross profit | 1614.6 | 1209.7 | 1114.0 | 1311.8 | 1582.9 |
| 18. | Pre-tax profit | 782.6 | 683.1 | 624.7 | 502.0 | 857.9 |
| 19. | Post-tax profit | 142.6 | 100.6 | 197.1 | 249.5 | 506.7 |
| 20. | Fixed assets | 776.2 | 782.8 | 776.1 | 711.8 | 693.3 |
| 21. | Total assets | 42062.2 | 39700.9 | 36671.0 | 36973.4 | 35912.9 |
| 22. | Required provision | 727.0 | 920.8 | 1187.7 | 3679.4 | 305.1 |
| 23. | Provision for bad & doubtful debts | 853.8 | 954.2 | 1187.7 | 3680.1 | 2870.2 |
| 24. | Book value per share (NAV) | 1868.16 | 1743.61 | 1687.17 | 1730.44 | 1306.90 |
| 25. | Income per share | 142.83 | 100.73 | 197.41 | 24 9.89 | 5 07.63 |
| 26. | Income from equity (%) | 7.65% | 5.78% | 11.62% | 16.08% | 38.84% |
| 27. | Income from assets (%) | 0.34% | 0.25% | 0.51% | 0.67% | 1.41% |
| 28. | Number of shareholders | 5351 | 5631 | 6120 | 5684 | 5549 |
| 29. | Number of branches | 198 | 198 | 198 | 198 | 198 |
| 30. | Number of employs | 3265 | 3382 | 3209 | 3200 | 3159 |
| 31. | Human resources development | 761 | 846 | 1086 | 509 | 534 |
| 32. | Market value per share | 2811.00 | 2373.75 | 649.00 | 486.75 | 522.00 |
?SOURCE- ANNUAL REPORT 2005 OF UBL.
SMALL BUSINESS ENTERPRISE
?small enterprise means an entity, ideally not a public limited company. Does not employ more than 30 persons (if it is a service concern) and 20 persons (if it is a trading concern) 60 persons (if it is a manufacturing concern) and also fulfill the following criteria:-
?A service concern with total assets at cost excluding land and building from TK, 50000 to TK, 30 lac.
? A trading concern with total assets at cost excluding land and building from TK, 50000 to Tk.50 lac.
? A manufacturing concern with total assets at cost excluding land and building from TK, 50000 to TK, 1 core.
POLICY GUIDE LINES FOR SMALL BUSINESS ENTERPRISE
?Assess the entrepreneur s character for integrity and willingness to repay.
?only land when the entrepreneur has capacity and ability to repay.
?only extend credit if branch can sufficiently understand and manage the risk.
? Use common sense and past experience in conjunction with through evaluation and credit analysis.
?do not base decisions solely on customer s reputation, accepted practice, other lenders risk assessment or the recommendations of others officers.
? be proactive in identifying, managing, and communicating credit risk
? SOURCE– PRODUCT PROGRAM GUIDELINES OF BAGLADESH BANK.
General banking does the basic works of the bank. General banking is also known as retail banking. In UTTARA BANK LIMITED principle branch the following section are under general banking department for the proper functioning and customer services.
?Bank Account is a system how bank credit and debit the account of depositors.
?How bank do transaction with there client through the specific A/C is called bank account (Hudson).
?The account number which bank kept reserve for the specific client is called bank account,
Methods:
?At first the client will collect the application form the bank officers.
?Second he/she will fill up the application form and specie men card.
?third he/she will adjust the documents with the application form such as two copies of photograph, memorandum, articles, identify certificate etc.
? After fill up the accounts form he/she will submit it in bank account section.
?Then the client will deposit his/her initial amount.
? After deposit his / her initial amount then the bank will provide him/ her specific number, cheque book, and pass book.
ACCOUNT OPENING PROCEDURE OF UBL WITH A FLOW CHART.
|
SAVING ACCOUNT:-
?When a client able to open an account with a little amount of money and can deposit their little amount of money regularly in this account is known as saving account.
?The main objectives of this account are to inspire /encourage people for deposit save.
?This account is suitable for a service holder/ student / house wife/ and fixed earner.
?According to Uttara banks interest rules saving account holder will get 6.5% interest on his / her deposit after every six month period.
?In this account the client can with drawl his / her deposit amount two times within a week. If he needs more then he will inform the bank before seven days.
?At present UBL total numbers of saving account holders of banga bandhu avenue branch are 2840.
?After open this account every client will get a cheque book of ten pages.
REQUIREMENTS:-
?Two copies of recent passport size photograph of account opener including nominees one duly attested.
?Identify certificate of account openers issued by –
?local ward commissioner certificate.
? Chairman Certificate.
?Voter ID card.
?Passport photocopy.
?An existing account holder of that branch will introduce the new account opener that’s means introducer will be required.
?The client will also submit his / her monthly transaction profile.
?The minimum amount of that account is tk 1000.
. ?SOURCE:- GENERAL BANKING DEPARTMENT OF UBL.
CURRENT ACCOUNT:
?A current account is a running account with amount being paid into and drawn out of the account continuously.
?The main objective of this account is to help such kinds of clients who want to do daily transaction.
? This account is suitable for a trader/ industrialist/ promoter/ and contractor.
? This account can be individual or joint account.
?Uttara bank do not pay any interest for this account. So the client of current account does not get any kinds of interest from this account.
?There are 2418 current account holder at banga bandhu avenue branch of uttara bank limited.
? ?
?
?
REQUIREMENTS FOR ALL TYPES OF CURRENT ACCOUNTS OF UBL.
?Individual/joint a current account :-
?two copies of recent passport size photograph are require for each account opener including nominees one duly attested.
?Identity certificate issued by:-
?local ward commissioner /chairman
?Voter ID card.
?pass port photocopy.
?Proprietorship:-
?two copies of recent passport size photograph are require for each account opener including nominees one duly attested.
?Identity certificate issued by:-
?local ward commissioner /chairman
?Voter ID card.
?Pass port photocopy.
?Certified copy of valid trade license.
?Partnership firm:-
?two copies of recent passport size photograph are require for each account opener including nominees one duly attested.
?Identity certificate issued by:-
?local ward commissioner /chairman
?Voter ID card.
?Pass port photocopy.
? Valid trade license.
? Partnership deed duly signed by all partners.
?Partnership account agreement.
?SOURCE:- GENERAL BANKING DEPARTMENT OF UBL.
?Limited company:-
?Two copies of recent passport size photograph are require for each account opener including nominees one duly attested.
?Identity certificate issued by:-
?Local ward commissioner /chairman
?Voter ID card.
?pass port photocopy.
?Memorandum and articles of association.
? Certificate of incorporation.
?certificate of commencement of business in case of public limited company
?Resolution of board of directors for opening and operation of the account
?List of directors with their father and mother name.
SHORT TERM DEPOSIT ACCOUNT:-
?In this account client deposit his/her amount of deposit for a certain time and the client promise that he would not withdraw his deposit before the certain time.
?But if the client with draw his deposit before certain time the bank will not give him any kind of interest on his deposit amount.
?If he withdraw his deposit through a short notice before 7/15/30days then he will get 5.5% interest on his deposit amount.
?there are 31st STD account holder now available in UBL at banga bandhu avenue branch.
?Normally intellectual business people operate such kinds of account.
?In this account client will receive interest annual base.
?SOURCE:- GENERAL BANKING DEPARTMENT
LOAN ACCOUNT:-
?When a bank do not disburse a client sanction able amount of loan in cash. But the bank disburse the loan through a loan account is called bank loan account.
?The client can with draw his expected amount of loan from the loan account.
?The client will give interest for total sanction able loan.
Banks Over Draft (OD):-
?According to prior agreement a current account holder can with draw more than his /her deposit amount.
?This types of loan sanction only for personal goodwill and faithful clients.
?This account is suitable for a trader/industrialist.
? Personal security/purchase documents, also accepted for some cases.
Cash Credit Account:-
?When a bank sanction a loan for its client through specific current account is known as cash credit account (cc-a/c).
?When a client take loan from the bank against mortgage (i.e.-land, building,) it’s called cash credit account.
?Cash credit account is valid for just one year .after one year client can renew the cc-a/c
?Then the bank deposit the sanction able amount at lone current account.
?The loaned can with draw his expected amount from the sanction able amount.
?The client will give interest for this amount which he has with draw from the cash credit account.
? Bank sanction cash credit against personal security / purchase documents and FDR. ?SOURCE:- GENERAL BANKING DEPARTMENT OF UBL.
Sundry deposit:-
?If any kinds of difference of client account number/name/amount then the bank deposit it in bank sundry account.
?After that client can transfer his/her amount through an application.
Suspense account:-
?For banks daily expense advance amount of money are deposit here.
?Then the banks staff can with draw their expected amount for daily expense.
Fixed Deposit Receipt Account (FDR):-
?In this account client will deposit his amount for once for a specific time.
?In this account no need any kinds of introducers.
?in this account client will get interest after every 3/6/12/24 months respectively.
?if the client with draw his/her amount before the certain times UBL do not pay him any kind of interest.
?In this account the client will deposit his amount for once & withdraw his deposit also once.
| TIMES OF FIXED DEPOSIT RECEIPT | RATE OF INTEREST |
| For three months | 8.25% |
| For six months | 8.5% |
| For twelve months/one year | 9.00% |
| For twenty four months/2 years | 9.25% |
| Above two years | 9.5% |
?SOURCE:- GENERAL BANKING DEPARTMENT
EXCISE DUTY
?From every types of account government deduct a charge per year on the basis of the remaining balance of the account.
| rate of excise duty | |||||
| amount | current-ac | saving-a/c | fdr-a/c | others | rate of excise duty |
| 10001-1lac | 47 | 198 | 28 | 4 | 120 |
| 100001-10lac | 85 | 167 | 59 | 26 | 250 |
| 1000001-1core | 40 | 14 | 07 | 11 | 550 |
| 10000001-5core | 1 | 2 | nil | 5 | 2500 |
| 50000001-above | nil | nil | nil | nil | 5000 |
?SOURCE:- GENERAL BANKING DEPARTMENT OF UBL.
ACCOUNT CLOSING:-
?Account holder can willingly close his/her bank account .but he will follow the account closing method of uttara bank limited that’s are given below:-
?At first he will submit an account closing application form to the bank.
? He will also submit the bank cheque book/pass book/and deposit slip.
?After that ubl will cut a service charge TK, 100.
?Bank can also close the client account for the following reasons:-
?If the client died.
?If the client lunatic and
?Bankrupted.
Remittance
?The remittance department is concerned for the flow of money to different spots and the exchange of different convertible units of money like pay order, drafts, T.C. etc.
Activities
The things done in the remittance department can be listed in the following points-
?Issuing TC.
?Refunding or give the changes of TC.
?Changing the foreign currency to Taka.
?Selling the foreign currency.
?Receiving the application form for sanchay patra and sending them for issuing.
?Delivering the issued sanchay patra to the customer.
?Receiving the interest coupons and the matured sanchay patra and sending them for encashment.
?Receiving the application form and issuing pay order, demand draft and telegraphic transfer (local & foreign).
?Receiving the application form for fund transfer.
?Issuing Bangladesh Bank Check.
?Receiving the stop check application and stopping them.
?Receiving checks, drafts and dividend slips for clearing, collection and transfer.
?Mailing the returned checks to the customers.
?Delivering the PRC (Proceed Realization Certificate).
?Filing the different documents.
. ?SOURCE:- REMITANCE SECTION OF UBL AT B.B.A (BRANCH).
Payment Order:
?A payment order is an instrument to remit fund within a clearing zone. The PO can only be cashed through the branch that has issued the instrument.
Issuing of PO:
?The procedures for issuing a PO are as follows:
?Deposit money by the customer along with application form.
?Give necessary entry in the Bills Payable (PO) registers where payee’s name, date, PO No. etc., is mentioned.
?Prepared the instruments.
?After scrutinized and approved the instrument by authority; it is delivered to the customer.
?Signature of the customer is taken on the counterpart.
Commission for Issuance of Pay Order
| Product | Commission (Taka) | |
| Up to TK, 1000 | TK,10/- | |
| P.O | Above TK, 1000 | TK, 25/- |
| P.O | Above TK, 100000 | TK, 50/- |
| P.O | Above TK, 500000 | TK, 100/- |
?SOURCE:- REMITANCE SECTION OF UBL AT B.B.A (BRANCH).
Demand Draft:
?A Demand Draft (DD) is also called the ‘Bankers Draft’. It is an instrument issued by a particular branch, drawn on another branch of the same bank, instructing to pay a certain amount of money. DD is very much popular instrument for remitting money from one corner of a country to another.
“A bankers draft payable to order on demand drawn by or behalf of bank up on itself. whether payable at the head office or other office of the bank” (MR.H.P SHELDON).
Procedures for issuing a DD:
? Deposit money with DD application form filled in.
?Necessary entries are given to register name DD OUT-concern (drawn on) branch. ?Issuing of the ‘Account payee only’ crossed instrument.
?DD normally use outside of clearing house.
Commission for Issuance of Demand Draft
| Product | Charges (Taka/US$) | |
| Inland | Outward | |
| D.D | Minimum TK, 25/- plus Postage/Cable/Telex charges.
Above TK, 25000.per thousand TK,1 will be added. |
@0.15% (minimum US$ 5, maximum US$ 12) |
?SOURCE:- REMITANCE SECTION OF UBL AT B.B.A (BRANCH).
Telegraphic Transfer:
?Sometimes the remitter of the funds requires the money to be available to the payee immediately. In that case, the banker is requested to remit the funds telegraphically. Such type of remittance is called Telegraphic Transfer (TT).
Procedure for the Outgoing TT:
?Deposit of money by the customer along with application form.
?In receipt of money a cost memo is given to the customer containing TT serial No. which is informed to the awaiting party in the paying branch by the customer.
?After collection of money from the client branch remittance officers give a message to the responding branch that included with
?Account number of responding branch.
?Amount of money.
?Name of the drawee.
?Confident test number.
?The telex department confirms transmission of the message.
Procedure for the Incoming TT
?After receiving the telex, it is authenticated by tested.
?TT serial number is verified the TT In-Concern branch registers.
Charges for Issuance of Telegraphic Transfer
| Product | Charges (Taka/US$) | |
| Inland(TT) | Outward(FTT) | |
| Amount @0.10%=
Telephone bill=40/- Exchange fee=50/- Vat 15%= |
@0.15% (minimum US$ 5, maximum US$ 20) plus other charges | |
?SOURCE:- REMITANCE SECTION OF UBL AT B.B.A (BRANCH).
MAIL Transfer:
?Mail transfer is an order issued in the form of a letter for a payment of money sent by mail. The purchasers pays cash while buying but beneficiary at foreign center gets payment on arrival of the mail advice.
Procedure for the Outgoing MT:
?Deposit of money by the customer along with application form.
?In receipt of money a cost memo is given to the customer containing MT serial No. which is informed to the awaiting party in the paying branch by the customer.
?After collection of money from the client branch remittance officers give a message to the responding branch that included with
?Account number of responding branch.
?Amount of money.
?Name of the drawee.
?Confident test number.
Procedure for the Incoming MT
?After receiving the mail, it is authenticated by tested.
?MT serial number is verified the MT In-Concern branch registers.
Charges for Issuance of mail Transfer
| Product | Charges (Taka/US$) | |
| Inland(TT) | Outward(FTT) | |
| Amount @0.10%=
Telephone bill=40/- Exchange fee=50/- Vat 15%= |
@0.15% (minimum US$ 5, maximum US$ 20) plus other charges | |
?SOURCE:- REMITANCE SECTION OF UBL AT B.B.A (BRANCH).
Traveler’s Checks
?Uttara Bank Limited International Traveler’s Checks in various determinations in both US Dollars and GB Pounds.
CASH DEPARTMENT
?The UBL BANGA BANDHU AVENUE branch has a very efficient cash section. Cash is received and disbursed here. This section has one payment and one-receipt tellers.
FUNCTIONS OF CASH DEPARTMENT
?Cash paymentupon the receipt of the instrument for payment, the cash officer observes the following things:
?The date of the cheque,
?.Signature of the account holder,
?.Name of the Branch,
?.Whether the cheque is crossed or not,
?whether the amount in word and the amount in figure correspond or Not.
?Whether there is sufficient balance or not, and
?whether there is any legal obstruction or not.
If all the particulars are in order, the cash officer makes payment to the customer.
?SOURCE:- GENERAL BANKING SECTION OF UBL AT B.B.A (BRANCH).
BOOKS MAINTAINED BY THIS DEPARTMENT
?Cash register: This book keeps account of cash in vault in the ban
?.Cash receipt register: Cash received in the whole day is recorded here.
?Cash payment register: Cash payment made in a day is recorded here.
?Rough vault register: Allrough calculations of cash receipts and payments are recorded in vault register.
?Cash balance book: Cash balance by counting the notes and coins is finally recorded here. Balance here is compared with vault register. If no discrepancy is found, then everything is thought to be right. Otherwise this indicates error.
?In book (I). And (v). As above, notes and currency are recorded by mentioning their denominations and number of each denomination. The set of these books is maintained separately for both local and foreign currency.
CHEQUE CLEARING
?This department receives cheque from its depositors for the purpose of collection by a deposit slip over the counter crediting their account. Clearing of cheque is done through the clearing house in Bangladesh Bank.
TYPES OF CHEQUE FOR CLEARING
A receiving officer receives deposit through 4 kinds of cheques:
?Inward clearing cheque.
?Outward clearing cheque.
?.Inward bills for collection.
?Outward bills for collection.
INWARD CLEARING CHEQUE
?It refers to the instruments drawn on UBL.received from other banks through the clearing house. The following procedures are followed for collection:
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?SOURCE:- CLEARING SECTION OF UBL AT B.B.A (BRANCH).
OUTWARD CLEARING CHEQUE
?It refers to the instruments drawn on the banks received by the UBL. They are of three kinds:
?Cheque drawn on another branch if UBL Bank Ltd. this is called outward bills for collection (OBC).
?Cheque drawn on another bank, which is situated outside the clearinghouse. This is called outward bill for collection
Flow chart for OBC received from another Branch:
Cash Receipt:-
?The second function of this department is to receive cash. Depositors deposit money in the account through this section by deposit slip. This section also receives cash for issuing bank draft, telex transfer etc.
In the second case, the following chart will show the process.
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INCASE OF TWO PROCEDURE EXIST
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At first, UBL maintains the instrument of IBCA received from other branches. All clearing cheques are not received on the counter. Some cheques are received from other banks.
Secondly, if there is no branch of UBL then we directly send the cheque to the Drawee bank and request them to send the proceeds by TT, DD or by any other means.
INWARD BILLS FOR COLLECTION (IBC)
All clearing cheques are not received at the counter. Some cheques are received from other sources for collection. These cheques are received:
?.From another branch of UBL Bank Ltd., the cheques are settled by sending IBCA, i.e. by doing the following:
Depositors A/C………………………………………… Dr.
UBL General A/C (sending Branch)………….. Cr.
?From another bank outside the clearing-house. The cheques are settled debiting depositors account and sending DD, TT and the like. These cheques are called IBC. For settlement of this kind of cheques, UBL sends IBCA if cheques are sent by our branch and sends DD.TT if sent by another bank.
?SOURCE:- CLEARING SECTION OF UBL AT B.B.A (BRANCH).
OUTWARD BILL FOR COLLECTION:
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When BANGA BANDHU Branch sends cheques to other branches of UBL, procedures for outward bills for collection:
UBL Bank general account (sending branch) ———- Dr.
Depositor’s account —————————————– Cr.
?SOURCE:- CLEARING SECTION OF UBL AT B.B.A (BRANCH).
SHORT COLLECTION:-
? This is a method how UBL collect their inter bank cheque. Such as Uttara bank banga bandhu avenue to ramna brach.
SCHEDULING:-
? Daily transactions are including that scheduling.
?What type of documents we prepare for others branch is called originating and it will be credited in daily scheduling.
?what we receive and respond from others branch is called responding. in this case originating branch will be debit.
DESPATCHED:-
This is a system how ubl sent and received documents from out side. it can be two types.
?SOURCE:- GENERAL BANKING DEPARTMENT OF UBL AT B.B.A (BRANCH).
Findings of General Banking:
Ingeneral banking department they follow traditional system. They entire general banking system is not fully computerized.
The service of remittance section is not as prompt as customers demand because of their un computerized system.
The bank provides only some traditional limited services to its clients. As a result the bank is falling behind in competition.
Most of the clients face introducer problem to open an account. If a person who is new of the city wants to open an account, it is a problem for him /her to arrange an introducer of SB or CD account holder.
They are not using data base networking in information technology (it) department. So they have to transfer data from branch to branch and branch to head office by using transferable desk. Such as -floppy.
Although the profit earning condition is satisfactorily, the customer service conditions of the Branch is customer oriented but not high or top class.
The Accounts opening procedure is not easier to the customers, such as the names of introductory, no separate desk for this.
Every officer does not have computers for all where it is mandatory for all of them.
LOAN AND ADVANCE DEPARTMENT:-
?Banking business consists of borrowing and lending. Banks act as intermediaries between surplus and deficit economic units. Thus a banker is a dealer in money and credit. Banks accept deposit from large number of customers and then lend a major portion of the accumulated money to those who wish to borrow. In this process banks secure reasonable return to the savers, make funds available to the borrowers at a cost and earn a profit after covering the cost of funds. Banks, besides their role of intermediation between savers and borrowers and providing an effective payment mechanism, has been allowed to diversify into many new areas of better paying business activities.
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