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Executive Summary

United Commercial Bank Limited (UCBL) is one of the first generation private sector Banks in Bangladesh, commenced its commercial operations from mid 1983 and has since been able to establish one of the largest network of 84 branches in six different districts.

United Commercial Bank Ltd. offers all kinds of Commercial Corporate and Personal Banking services covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software.

UCBL Mohakhali branch is one of the branches which facilitate all kind of facilities that a Bank offers. It has General Banking, General Advance as well as Foreign Exchange Advance Department.

General Banking is the starting point of all the banking operating. It is the department, which provides day-to-day services to the customers. General Banking consists of the many sections in the branch. These are including customer service, account opening/closing, remittance, deposit department, account’s department.

General Advance provides loan and advance products to the client for financing different purpose that fulfill the requirements of the bank and have good return to the investment as well as satisfy the client. The loan and advance products are personal loan scheme, small & medium enterprise loan, working capital financing, import financing, export financing, syndicate loan, industrial financing etc.

Foreign Exchange Department deals with import, export, and foreign remittance and post import financing. This department is playing an important role in enhancing export earnings, which aids economic growth and, in turn, will be helpful for economic development.

United Commercial Bank Limited is the preferred choice in banking for friendly and personalized services, tailored solutions for business needs, global reach in trade and commerce and high yield on investments, assuring Excellence in Banking Services.




The objective of the report is to gather practical knowledge particularly regarding any business organization and its operations. Theoretical classes of Bachelor of Business Administration program provides us knowledge regarding theories and models whereas internship program gives us the chance to view those systems and their operations (based on theories and models) in practice. Apart from this broad objective we can identify the objectives of this report as follows:

§ Understanding the environment, functions and management of the organization for my case it is UCBL Bank.

§ Narrating experience in working in UCBL

  • To apply theoretical knowledge in the practical filed in order to formulate a problem to work on.
  • Defining and analyzing the problem.
  • To learn about banking more thoroughly.
  • To relate the theoretical knowledge with the practical content.

q Scope

As my study title is “The Banking Activities of UCBL”, it is clear that the scope of this study has spread over whole customers of the organization both corporate and retail. The scope of the study has been divided in two parts. One is operational scope and another is time scope. These are described below –

Operational Scope: The operational scope of this study has been confined working under all the departments for 3 months.

Time Scope: This report has accomplished with in the period of three months started from 30th December, 2008.

q Limitation

While doing this paper, I have faced several obstacles. They were –

§ The website of UCBL does not contain updated information.

§ UCBL does not possess any Annual Report or Brochure.

§ I have to submit the report within short period of time.

Overview of United Commercial Bank ltd

United Commercial Bank Limited (UCBL) is a Bangladesh based financial institution that provides banking services. The services include personal and business banking, loans, credit cards, online banking and money transfer services. The bank primarily operates in Bangladesh, where it is headquartered in Dhaka.

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.

q History

United Commercial Bank Limitedincorporated on 26 June 1983 as a public company with limited liability under the Companies Act 1993. The bank obtained permission to commence business with effect from 26 June 1983 and started banking operations on 29 June 1983 with an authorized capital of Tk. 100 million divided into 1 million ordinary shares of Tk. 100 each.

q Management

The Bank has in its Management a combination of highly skilled and eminent bankers of the country of varied experience and expertise successfully led by Mr. M. Shahjahan Bhuiyan, a dynamic banker, as its Managing Director and well educated young, energetic and dedicated officers working with missionary zeal for the growth and progress of the institution.

q Corporate Information at a Glance

Registered Name United Commercial Bank Limited
Registered Head Office Federation Building, 60 Motijheel, Dhaka.
Chairman Mr. Md. Jahangir Alam Khan
Managing Director Mr. M. Shahjahan Bhuiyan
Number of Branches 84

q Organogram of UCBL

q Products and Services

The Bank provides a broad range of financial services to its customers and corporate clients. The Products and Services UCBL offers are:

Products & Services
  • Industrial Finance
  • Foreign Currency Deposit A/C
  • NFCD ( Non Resident Foreign Currency Deposit Account )
  • RFCD ( Resident Foreign Currency Deposit Account )
  • Western Union Money Transfer
  • Consumer Credit Scheme
  • Locker Service
  • Industrial Finance
  • Foreign Currency Deposit A/C
  • One Stop Service
  • NFCD ( Non Resident Foreign Currency Deposit Account )
  • Time Deposit Scheme
  • Inward & Outward Remittances
  • Monthly Savings Scheme
  • Travelers Cheques
  • Deposit Insurance Scheme
  • Import Finance
  • Working Capital Finance
  • Export Finance
  • Inward & Outward Remittances
  • Trade Finance
  • Loan Syndication
  • Underwriting and Bridge Financing

United Commercial Bank divided its branch into several departments. The main 3 departments are:

General Banking


General Banking is the starting point of all the banking operating. General Banking department aids in taking deposits and simultaneously provides some ancillaries services. It provides those customers who come frequently and those customers who come one time in banking for enjoying ancillary services. It is the department, which provides day-to-day services to the customers. Every day it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, demit funds, issue bank drafts and pay orders etc.

Cash Management Department

Cash section demonstrates liquidity strength of a Bank. It is also sensitive as it deals with liquid money. It is the most important department that is contributing to the earning of the bank in terms of goodwill and customer satisfaction with their quality and prompt services.

Cash department of UCB Mohakhali Branch is well equipped and decorated. There is also electronic counted machine and computers with online system in this department. Balance of account can be seen with few seconds. So cash payment can be made very promptly. Transaction involving cash is called cash transactions. The cheques/ instrument / vouchers which are paid in cash over the counter are cash transactions. It has two types of services:

§ Cash Receipt

§ Cash Payment

q Procedure of Cash Receipt

The depositor will use the prescribed deposit slip supplied by the bank to deposit cash /cheques/ demand draft/ pay order etc. All cash receipt voucher shall be received by the teller. Cash receipt counter performs its job as follows:

§ First checks if the deposit slip is properly filled up containing title of account, account number, date, amount in word and figures and depositors sign.

§ Cash is received by the cash receiving officer, twice counted and matched with the deposit slip and also write down the denomination of notes behind the cheque.

§ Cash receiving officer write down the amount in figure and in words on the front side of the cheque.

§ Cash received stamp is affixed on the face of the deposit slip along with the signature of the cash receiving officer.

§ Record it in the Record Book and put scroll no in the cheque

§ Deposit slip is credited and posted in the concerned account in the system.

§ Counter folio is given to the depositor as receipt. One consolidated cash debit voucher is posted in the system to balance the cash.

q Procedure of Cash Payment

At this counter cash is paid to the customer on demand by placing a cheque over counter. Payment counter performs its job as follows:

§ Check the cheque leaf whether it is worded properly. This cheque covers Branch seal, Date (Date must be current date or 180 days earlier), amount in figure and word, and finally signature of the Drawer. We also check here whether the word “Bearer” is crossed away or the cheque is in the name of any company or firm.

§ Verify the signature with the specimen signature and give verification seal and signature of the verifier.

§ Check proper endorsement is given behind the check leaf in case of Check Drawn on Payees in the name of any Firm. For cheques in the name of Firm Attestation is required along with Firm’s common seal to be paid over the cash counter.

§ Account is debited and then the officer cancels cheque. It is posted in the system and posting stamp and transaction number is affixed on it.

§ Cheque is handed over to the cash payment officer for payment.

§ Take one more receiver signature on the back of the cheque is taken from the holder to match with the first one and then cash is paid to the payee. And also write down the denomination of notes behind the check.

§ Cash paid stamp is affixed on the face of the cheque. Entry is passed in the cash payment register.

§ Give posting in PcBANK2000 and debit Drawer account and note the transaction no. on the top of the cheque.

q Cash Book Balance

At the end of the working day cashier is responsible to maintain the cash balance book. The cash book contain the date, opening balance, detail of cash payment and received in figures, closing balance, denomination of government notes (Currency). It s checked by manager. The consolidated figure of receipt and payment of cash is entered in the cash book and the closing balance of cash is drawn from that i.e.

Opening Balance of Cash + Receipts – Payments = Balance

The closing balance of today will be the opening balance of tomorrow. This department is one of the most important departments of the Bank. All the books maintained in this department are checked by officer.

q Cash Insurance Limit

q Maintenance of Cash Remittance

The In-charge of Cash Department maintains the cash remittance according to the rules of the Bank. If the cash manager thinks that the amount of money cross the limit, then he called the Principal Branch to takes the extra amount of money or vice versa. Inter Branch Credit Advice (IBCA) is used for such transaction.

q On-Line Banking Operations

The UCBL has 84 branches and all transactions among the branches are done through Online. UCBL uses PcBank2000 customized software for its day to day transaction. The activities are:

§ Deposit cash in any branch in any account

§ Withdraw cash from any branch

§ Transfer from any account to any branch

There are several charges for online transaction. Such as-

q Inter City Transaction charges:

Amount Commission (TK) VAT (TK)
Tk. 1-50000 Nil Nil
Tk.50001-100000 50 8
Tk.100001-1000000 100 15
Above 1000000 200 30

q Within City Transaction charges:

Amount Commission (TK) VAT (TK)
Tk. 1-50000 Nil Nil
Tk.50001-100000 25 4
Tk.100001-1000000 50 8
Above 1000000 100 15

Account Opening Department

Responsibility of the customer service starts with opening of new account in the name of new customer. This is the starting point of the client bank relationship. By opening an account, the bank bridge it’s customer to avail the facilities provided by the bank.

q Types of Account

UCBL has several types of deposits for its customers. Like-

§ Savings Bank (SB) Account

This is an interest bearing account and only individuals can open this type of accounts.

§ Current Deposit (CD) Account

It is popular known as Current Account. Any individual, company, firm, may open this type of account in its own name. This is non-interest bearing account.

§ Short Term Deposit (STD) Account

This is opened and operated for short term and for specific purpose. It is also an interest bearing account and where rate of interest is generally below the savings rate.

§ Fixed Deposit Receipt (FDR) Account

Individuals, Firms, Companies, Associations may open this account. The deposit is taken for a specific fixed period of time, such as 3 months, 6months, 1-year etc.

There are few schemes UCBL is offering its customers. Such as-

§ Monthly Savings Schemes

§ Deposit Pension Scheme Plus

§ Money Multiplier

§ Money Maximize Scheme

q Rates of Interest on Deposits

Types of Deposit Rate of Interest (% p.a)
Savings Deposit 6.00
Short Term Deposit 5.00
Fixed Deposit

For 3 months

6 Months

12 Months




q Formalities for Open an Account

For opening the account, the first hand requirements are-

§ Application on the prescribed form

§ Introduction of the applicant

§ Specimen signature

§ Two copies of passport size recent photograph with attested by the introducer.

At first customer service desk want to know whether the customer has introducer to open the account or not? If yes then give him/her a printed Account opening Form along with Specimen Signature Card, Customer Transaction Profile Form and Information form on Money Laundering. After that, request customer to fill up the form duly and submit the form with required documents.

q Required Documents

§ Personal Account

§ Two Copies of Passport size photographs of the applicant attested by the Introducer and one copy passport size photograph of the Nominee attested by the applicant.

§ Copy of passport/National Identity Card/ Voter ID Card/ Certification from Word Commissioner or Union Perished Certificate.

§ Details of occupation/employment and sources of wealth or income.

§ Current Proprietary

§ Same as personal account plus Trade License.

§ Partnership Account

§ Same as personal account plus Trade License and Partnership deed.

§ Limited Company

§ Certificate of Incorporation.

§ Memorandum and Articles of Association.

§ Resolution of the Board of directors.

q Maintenance of Specimen Signature Card

Specimen Signature should be retained in card cabinet arranged in account number order. The key of the cabinet should be held by an authorized officer who should ensure that cabinets are securely locked and placed inside the Strong Room overnight.

q Maintenance of Account Opening Form (AOF)

Account Opening Form are kept in AOF cabinet according to the account type as well as account number. Signature should be retained in card cabinet arranged in account number order. The key of the cabinet should be held by an authorized officer who should ensure the security of these forms.

q Letter of Thanks

After completing all the formalities of opening an account, a letter of thanks is send to the address of the customer. If letters addressed to customers, introducers or referees are returned undelivered or not satisfactorily responded, then no service should be provided to the customer unless specifically approved by the Branch Manager.

q Letter of Welcome

Letter of welcome send to the potential customer to let them know about the latest offer of UCBL.

q Closing an Account

When a customer wants to close his account in the bank he has to follow the following procedure

§ The client writes a written application

§ She/he surrenders the unused checkbook

§ The bank takes charge TK. 200.00 for closing fee

§ The rest amount gives to the customer

§ Closed rubber stamp uses top of the respective account opening form and file.

q Issuance of Cheque Book

A cheque book contains a number of cheques, which is given to a customer upon written request and after marking the payment for the cheque book. It enables a customer to make withdrawal from his account or make payment to various parties by issue of cheques.

All the account opening formalities must be completed before, issuance of cheque book. Particulars of the cheque book requisition should be completed containing title of account, account number, number of leaves and signature of the customer. Signature of the customer is verified on the requisition. If customer is unable to collect his cheque book, then he can give authority to the third person to collect his cheque book on his behalf by signing on the back of the requisition.

Cheque book is taken out from the locker. It is assured that series of the cheque book is in order. Particulars are entered in the cheque book issuance register. Account number is stamped on every leaf of the cheque book and those leaves are counted. Name of the account holder is written on the cover of the cheque book and requisition on the cheque book for further issuance is properly filled stamped and signed by officer of the bank.

Cheque book is delivered to the customer and his signature is taken on the cheque book issuance register, cheque serial number is entered in the system (PcBANK2000). Stock of Cheque books are balanced at the end of each day and kept under safe custody.

Cheque Book Issue Charge
Per leaf Tk. 1

Account Bills & Remittance Department

Remittance is one of the important items of bank business. Now a day business person cannot run his business without bank remittance facilities. Sending some money from one station to another through banking channel is called remittance. Remittance may be both local and foreign. The main instruments used for local remittance of fund are:

q Pay Order (PO)

q Demand Drafts (DD)

q Telegraphic Transfer (TT)

q Pay Order (PO)

Payment order is meant for making payment of the bankers own of the customer’s dues locally and not for affecting any remittance to outstation. In a sense, the payment order is used for making a remittance the local creditors.

q Issuance of Pay Order

§ The customer should fill up PO application form.

§ Money should be received by cash or by debiting clients account.

§ Give necessary entry in the Pay Order register where payee’s name, date, PO no, etc is mentioned.

§ Printed payment order leaf should be filled and signed by two authorized officers.

§ Entry should be given in computer under supervision of authorized officers.

§ After scrutinizing and approval of the instrument by the authority, it is delivered to customer.

§ Signature of customer is taken on the counterpart.

PO issuance thereof
Upto Tk. 1000/- Tk. 25/-
Above Tk. 1000/- but not exceeding Tk. 1.00 lac Tk. 50/-
Over Tk. 1.00 lac but not exceeding Tk. 5.00 lac Tk. 75/-
Over Tk. 5.00 lac Tk. 150/-
Cancellation Charges of PO Tk. 50/- per instance
Charges for issuance of Duplicate Instrument Tk. 100/- per instance

q Demand Draft (DD)

A bank draft is an order to pay money drawn by one office of the bank on other office up on other office of the same bank for a sum of money payable to order on demand. A bank draft is an order by one branch to another branch of the same bank outside the clearing zone.

q Issuance of Demand Draft

Issuance procedure of Demand Draft is same as of Pay Order.

q Issuance of Duplicate PO/DD

If the customer wants to issue a duplicate DD, than customer is asked to do the following formalities:

§ Making a general diary (GD) in the nearest Police Station.

§ Furnishing an Indemnity Bond in Tk.50/= stamp.

The banker immediately marks “Stop Payment” in the register after receiving the application from the customer and a duplicate PO/DD is issued.

q Encasement Procedure of DD

After receipt of advice:

§ On receipt of advice from drawing branches following entries are passed. The signatures of the issuing branch should be verified by the responding branch

Head Office A/c- Branch concerned Debit
Bill Payable Account- DD Payable Credit

§ Particulars of the above are entered on DD Payable Register in which separate foils are allocated to every branch and an index is maintained.

§ The particulars are checked and initialed by the in-charge.

Payment in Cash

§ The dates, amount in words and figures, branch drawn upon and signatures on the drafts are checked.

§ Particulars of the draft are verified from the register.

§ Payment date is noted on the register.

§ Stamp is affixed on the face of the drafts.

§ Draft together with the register is sent to the officer in-charge for cancellation and initials in the register.

§ After cancellation the draft is sent to the cash department for payment.

§ In case of any irregularity in the draft an advice letter is sent to obtain the confirmation of the drawee branch.

Payment in clearing

§ Collection Bank’s stamp, crossing and discharge are checked.

§ Other procedure is similar to that explained in payment in cash.

q Telegraph Transfer (TT)

Sometimes the remitter of the fund requires the money to be available to the payee immediately. In that case, the banker is requested by him to remit the funds telegraphically. Here fund is transferred through the aid of Test Key Materials and SWIFT. TT can be both foreign and local. On received of TT massage test number should be checked immediately. Then voucher to be passed through register duly authenticated by authorized officials.

DD/TT issuance thereof
Commission @0.10%

Minimum Tk. 50/-

Cancellation Charges of DD/TT Tk. 50/- per instance
Charges for issuance of Duplicate Instrument Tk. 100/- per instance
15% VAT on commission earning

q Encasement Procedure of TT

Receipt of Telegram:

§ Telegram is detected and test is verified by the in-charge and the manager.

§ If the test does not agree or the telegram is received mutilated, a telegram is sent the branch concerned asking them to repeat the test of the message with correct test.

§ If the test agrees, stamp is affixed on the telegram and signed by the officer.

§ Following entries are passed:

General A/C- Branch Concerned Debit
TT payable A/C Credit
TT payable A/C Debit
Party’s A/C Credit

Advice to Payee:

§ When TT Advice is receipt by the paying branch from the issuing branch, the advice (IBCA) is posted in the TT register for respond only without preparing any voucher.

§ If the amount is to be credited to be payee’s account.

§ Date of payment is noted in the register and initialed. If the TT is to be issued, then the receipt number is noted on the register.

§ The receipt along with the register is sent for checking and signature of the in charge and manager.

§ After that, the receipt is sent to the payee.

q Test Key Tables

Secure Code Tables or Test Key Tables (TTK) is one of the facilities used for authorization of client orders made by bank-online system or by fax or email. In order to preclude any possibility of misuse, your personal Secure Code Tables should be kept in a safe place where it is accessible only to authorized persons.

The test key is a digital signature that will secure any message to and from the bank. It is calculated by adding the key number from each table together with the unique fixed number sent to each client. It has 3 parts:

Table -A Branch Code
Table- B Amount Code
Table- C Date Code
Table-A Amount Code
Table-B Date Code
Table-C Currency Code
Table-D Required for TT and DD
Table-A Variable Sheet

q Crossing of Cheques and Endorsement

q Cheque

Cheque is a negotiable instrument. Cheques can be of two types:-

§ Open or Uncrossed Cheque.

§ Crossed Cheque.

Open Cheque: An open cheque is a cheque which is payable at the counter of the drawee Bank presentation of the cheque.

Crossed Cheque: A crossed cheque is a cheque which is payable only through a collecting banker and not directly at the counter of the bank. There are two mode of crossing- General Crossing and Special Crossing.

q Endorsement

Endorsement is an essential part of day to day work in Bank. A cheque requires varieties of endorsement like-

§ Branch Name

§ Account Number

§ Signature Verification etc.

q Clearing

The function of clearing department can be divided into two parts:

§ Outward Clearing

§ Inward Clearing

q Outward Clearing

§ Messengers of different branches bring instruments drawn on other Banks to the clearing section of Head Office.

§ Bills section of UCBL Head Office also sends the instruments drawn on other Banks to the clearing section for collection.

§ The clearing stamps are affixed on the instruments and endorsed

§ The particulars of these instruments are entered in the main schedule of Banks through NHCASH22 software and inserted in floppy disc.

§ The diskettes along with the instruments are carried to the Clearing House.

§ After going there the concerned officials of UCBL gives the instruments to the representative of respective Banks.

§ Claims of UCBL on other Banks are set off by Bangladesh Bank through debiting other Bank’s account and crediting UCBL’s account.

§ This function is done in the first house.

§ Outward Clearing

§ The instruments drawn on UCBL are received from other Banks in the Clearing House.

§ The amount and numbers of instrument are entered in the house from main schedule of respective Banks.

§ The instruments with schedule are arranged branch-wise.

§ The instruments are sent to the branches concerned for clearance and IBCAs are collected from them for honored cheques.

§ The dishonored instruments are sent back to respective Banks through the second house.

q Collection of Cheques and Bills

One behalf of counts banks play a vital role to collect cheques and bill a credit to the beneficiary’s a/c through banking channel. To collection of cheques and bills the bank follows two systems:

§ Outward Bills for Collection (OBC)

§ Inward Bills for collection (IBC)

Outward Bills for Collection (OBC): These bills are included within the clearing area. These bills can be from the same bank but different branches.

Inward Bills for collection (IBC): These bills can occur outside Dhaka within one bank or other banks.

General Advance


The General Division deals with asset selling of the Bank. Generally financial institutions like Commercial Banks pool fund from society in terms of deposit & channel this fund in terms of credit to different firms in business community as well as to individuals with deficit of fund in the society. And this facility is generally known as loan. So in a broader sense we infer that bank is providing solutions to the business as well as to the individuals for their financial needs.

UCBL’s credit mission is to actively participate in the growth and expansion of our national economy by providing credit to viable borrowers, efficiently delivered and competitively priced. UCBL’s client base consists of corporate, institutional and private clients to help them realize their short term goal as well as long term aspiration.

q General Guidelines

  • In the normal course of conducting business, the Bank will prefer trade financing in the form of short term (up to 12 months) self liquidating cash flow supported and collateralized trade transactions.
  • The Bank will consider lending short-term working capital finance to well establish entities engaged in manufacturing, assembling, processing of goods and commodities for consumption in domestic as well as international market.
  • The Bank will selectively, on a case-by-case basis, carefully approve term loans (loans with original tenor exceeding one year) with proper credit risk assessment supported by satisfactory cash flow statement.
  • The Bank will, on a case-to-case basis, approve disclosed participations in syndications.
  • The Bank will consider financing construction contractors. However, all such transactions should be properly analyzed in line with the status of contract proceeds and proper cash flow justifications.
  • The Bank will at all times maintain at the minimum a pari passu status to other Banks in all lending relationship. Second mortgages or lower, or second charge or lower, are not to be accepted as primary security.

q Loan & Advances

Loan and advances have primarily been divided into three main heads as follows:

§ Fixed Term Loan

These are the non-revolving loans made by the Bank with fixed repayment schedules. This loan is given for a specific term and usually repaid in Equal Installment either of monthly or quarterly. The interest may be paid quarterly or along with the installment. Fixed term loans are categorized into three categories based upon its tenure which is defined as follows:

§ Short-term loan: The tenor of this loan is less than one year.

§ Mid Term loan: The tenor of this loan is between one to five years. This type of loan is most preferred by both bank and the borrower. This loan is comprises with consumer credit, Agro credit, Micro Credit etc.

§ Long Term Loan: The tenor of this loan is more than five years. Here the fund is locked up for a long period and hence risk exposure is higher than other term loans.

§ Continuous Loan

These are the revolving loans having no fixed repayment schedule, but have an expiry date at which it is renewable on satisfactory performance of the customer.

Here the customer avail the loan facility continuously for a specific time period. And the customer can enjoy the facility at any time with in the period. And also noted here that within stipulated limit he can enjoys the facility as much as he desires. That’s why this loan arrangement is also termed as revolving loan. This is a very much popular form of loan facility in the business community. Two most popular continuous loans are as follows:

§ Over Draft (OD)

This is a loan arrangement between bank and customers by which the customer can draw money from his account up to a certain limit as approved by the bank. This loan is usually for one year time and renewable upon maturity.

§ Secured Overdraft (SOD): Overdraft which is normally granted against the security of tangible assets such as pledge/lien of FDR, bonds ICB unit certificate etc. are called SOD. Description of overdraft will depend upon the nature and types of security charged to the bank.

§ Temporary Overdraft (TO): Customers who maintain satisfactory conducted account may be accommodated at their specific request to overdraw their balance in the current account to meet unexpected and urgent requirements for credit facilities. The amount up to which overdrawing is permitted is dependent on the need of the customer, the previous conduct of his account with the bank and the turnover in the account, average balance maintained etc.

§ Cash Credit (CC)

This is an arrangement for meeting the firms working capital needs. Usually this loan is provided to procure raw materials and to complete it in finished goods. Therefore usually the security of this loan is the subject matter for which the loan is arranged for i.e. the finished goods stock. Some other collateral securities are also may be kept for this facility. Cash credit depending on its nature classified in the following types:

§ CC Hypothecation: In this arrangement the possession of goods (subject matter of the loan) goes with the client or borrower but the ownership is in bank’s hand. And client repays loan from the sales proceeds by turn. Here primary security is the goods purchased by the sanctioned loan and secondary security may be cash equivalent instrument or any mortgage property.

§ CC pledge: Here ownership and possession of the goods, subject matter of the loan, lies with the bank. And upon prior payment the client release goods from bank’s custody and sale accordingly.

§ Demand Loan

These are the non-revolving loans which are neither continuous nor fixed but have to be repaid on demand. This loan is repayable by the borrower on demand. That means for this loan the borrower is bound to pay back on demand of Bank.

§ Personal Loan ( Consumer Credit Scheme)

The objectives of this loan are to provide essential household durable to the fixed income group (Service Holders) and other eligible borrowers. Car loan, loan for house renovation, vacation loan, marriage loan and loan for household equipment well as entertainment products are governed by personal loan program. The Total amount of loans along with the duration in which these loans taken, need to be repaid is given below:

Type of Product Loan Amount (Tk.) Lac Rate of Interest Tenure
Home Loan Up to 7.5 15% 10 to 20 years
Auto Loan 2.00 16% 5 years
Doctors Loan 5.00 16% 5 years
Advance Against Salary 5.00 17% 4 years
Any Purpose Loan 10.00 17% 4 years
Education Loan 5.00 17% 4 years
Travel Loan 2.00 17% 3 years
Marriage Loan 3.00 17% 3 years
Hospitalization Loan 5.00 17% 2 years
CNG Conversion Scheme 1.00 17% 1.5 years

q Types of Credit Facilities

Serial No. Name of the Facility Description Purpose Tenor


1. SOD(FO) Secured Overdraft

100% cash covered

General purpose 12 months
2. TOD Temporary overdraft General Purpose

Forced Loan

60 days
3. PAD(Sight) Payment against Document (Foreign-sight) Advance against Sight L/C

Forced Loan

21 days
4. PAD(EDF) Payment against Document (EDF) Advance against EDF L/C

Forced Loan

21 days
5. PAD (A/G/B) Payment against documents (A/G/B) Advance against LC (A/G/B)-Forced loan 21 days
6. PAD (Local) Payment against document (Local- sight) Advance against Sight L/C (Local) – Forced loan 21 days
7. PC

(RMG & other than RMG)

Packing Credit against Export L/C & Export Order To finance against Export L/C

To finance against Export Order

Pre-shipment Finance

120 days
8. ECC


Export Cash Credit Financial accommodation to a customer for export of goods under export LC and allowed a certain percentage of Export LCs/Contract

Liquidated out of export proceeds

LC validity/180 days
9. BFL Bridge Financing Loan Support Equity 12-36 months
Serial No. Name of the Facility Description Purpose Tenor


10. TRL Transport Loan To finance commercial Transport 36-48 months
11. HBL(Com) House Building Loan – Commercial To finance commercial house/ apartment 36-96 months
12. HBL(Res) House Building Loan – Residential To finance residential building / apartment 60-120 months
13. LTR Loan against Trust Receipt To finance import L/C 180 days
14. HBL(S) House Building Loan – Staff To finance personal house/apartment 15 years
15. CC(Hypo) Cash Credit against hypothecation of Inventory and Book Debts To finance Inventory

Other Business operations

General purpose

12 months
16. CC(Pledge) Cash Credit against Pledge of Inventory To finance pledged Inventory 12 months
17. Loan General


Loan General Short term, medium term loans allowed for specific purpose for definite period and repayable by installments. 12-36 months
18. FBPD Foreign Bill Purchased & Discounted To purchase /discount/ negotiate export documents against Sight/ Usance Export L/C As per LC Terms
19. LBPD Local Bill Purchased & Discounted To purchase /discount against local usance L/C As per LC Terms

180 days

20. LCPS(S) Loan under Personal Loan – Staff To finance personal consumable items 36 months
Serial No. Name of the Facility Description Purpose Tenor


21. CL(S) Car Loan – Staff To finance personal car 5 years
22. FL(S) Furniture Loan – Staff To finance personal furniture 72 months
23. LIM


Import Loan against Imported Merchandise pledged To finance imported merchandise under pledge 180 days
Serial No. Name of the Facility Description Purpose Tenor
24. Term Loan Term Loan against fixed assets To finance fixed asset Over 1year max 7 years
25. Time Loan Time Loan against Other Security/Collateral/Support To finance business operations/work order/Industrial working capital

To finance fixed asset

To finance duty/tax

General purpose

12 months
26. OAP Own Acceptance Purchase Advance allowed for purchasing foreign currency for payment against LCs (Back to Back) where the exports do not materialize before the date of import payment

Forced Loan

90 days
27. OD(General) Overdraft against Other Security Collateral To finance business operations/Industry operations

Misc. purpose

12 months
28. CP(Local) Cheque Purchase (Local) To purchase/discount Cheque, Bank Draft, and Payment Order 30 days
Serial No. Name of the Facility Description Purpose Tenor


29. CP (Foreign) Cheque Purchase (Foreign) To purchase/discount foreign currency Cheque, Bank Draft, and Payment Order 45 days
30. Consumer Credit Scheme (CCS)


Consumer credit provided to middle class income group To finance purchase of consumer durable by the fixed income group to raise their standard of living. Over 12 months

Max 60 months

31. Hire Purchase


Hire purchase To finance capital machinery, equipment and vehicle

Installment credit

Borrower agrees to take the goods on hire at a stated rental

Repayment is inclusive of Principal as well as Interest for adjustment

Over 12 months

Max 60 months

32. Lease Financing


Lease finance To finance capital machinery, equipment and vehicle

Exclusive right to use the asset by the leaseholder for an agreed period against payment of rent.

Over 1 year max 5 years
33. OD (Work Order)


Overdraft against work


Advance against assignment of work order/ bill for execution of contractual works

Not a continuous credit rather time loan

06 months to 36 months
34. OD(EM)


Over Draft for Earnest Money To pay earnest money 90 days

Under non-funded credit, there are basically two major products namely Letter of Credit and Letter of Guarantee. Following are the non-funded products of UCBL:


Serial No. Name of the Facility Description Purpose Tenor
Non –Funded
1 BFC (Local) Bills for Collection – Local Collection of local outstation cheques/ Drafts/Documents As per rules/terms
2. BFC (Foreign) Bills for Collection – Foreign Collection of foreign cheques/ Drafts/Documents As per rules/terms
3. LG(Local) Letter of Guarantee – Local For contractual obligation (Bid-Bond, Payment Guarantee, Advance Payment Guarantee, Performance Guarantee, Customs Guarantee, Shipping Guarantee)