Assignment Point



Uttara Bank Limited is the leading bank in the private banking sector. It was incorporated as a banking company on 29.06.1983. It has now 211 branches all over the Bangladesh through which it carries out all its banking activities. Among 211 branches, 38 branches are Authorized Dealer (AD) branch, which deal with the foreign exchange business. Kalabagan Branch is one of the potential branches of Uttara Bank. As an Authorized Dealer branch, the branch has been continuing to extend special importance on foreign exchange business. With the enthusiastic endeavor of a good number of skilled officers the branch has been recording significant growth in its business during the last couple of years. There exists a congenial atmosphere among the officers in the branch. Historical data, customer profile and team spirit of the officers give hope to its management that the branch will see notable success in its future operation.

kalabagan branch of Uttara bank limited conducts all types of commercial business activities. such as rendering personal credits, local and foreign remittances and all types of foreign exchange business, loans and advance, bill receiving and collections. So the bank strategy is gradually cover total area of banking.

Foreign Exchange business is regarded as an emphatic field of a nation’s economic development activities and the commercial banks play immeasurable role to assist foreign exchange as well as international trade of the country. A bank’s foreign exchange section includes import, export, remittance and handling of foreign currency accounts.

Import means the flow of goods and services purchased by consumers, firms and government of one country from economic agents located in another country. Import is essential for the prosperity of the trading nations.

Export is one of the important activities to increase economic and social being, to build exchange reserve and to create wealth in a country. Export means transaction of goods and services from domestic economic agents to foreign economic agents for which domestic economic agents receive payment. Commercial banks extend financial support to the exporters in pre-shipment and post shipment stage which include export cash credit, packing credit, back to back L/C, advising and negotiation of export bills& so on.

Letter of Credit is an assurance of payment by the bank. Documentary Credit is an arrangement whereby bank (issuing bank) acting at the request and on the instruction of a customer (the applicant) or on its own behalf undertakes to make payment to or to the order of a third party (the beneficiary).

It is very much important to coincide the academic knowledge with the practical one. Keeping this view in mind, department of business administration of northern university of Bangladesh makes proper arrangement of practical orientation (internship) each year for the students of BBA program. I was placed in the Uttara bank limited kalabagan road branch for my internship program to have a practical working experience and have understanding of the real life with a closer look.

I have collected data from the two unique sources. In primary sources has collected data face to face conversation officers and office stuff and customers. In secondary sources, Annual reports of the bank and from the various sources. as well as the different books of journal. Objective of the reports has been highlighted that are such as General Banking activitiesof Uttara Bank Limited. Every study has some limitations, so this internship report is exceptional. Main constraints of the report are some internal data which bank does not publish for strong reason.

Uttara Bank Ltd. also provides the general banking service to the customer such as different categories of saving schemes, foreign exchange transactions, current account for business personal etc. at the time of my work at the branch I understood the gab between the practical and theoretical knowledge. I tried my best to make the report fruitful and my all efforts will be valuable if any one bets any sort of benefits from my report.

Finally, want to say that if any one has any suggestion or query about this report please let me know. Your suggestions will me to build up knowledge and my upcoming future.

Chapter: 1

INTRODUCTION

1.0Introduction:

Banking is one the most competitive industries of Bangladesh that has seen a huge amount of growth during the last decade. A large number of new banks have made their places in the industry and yet there are more to register in the list. In such a highly competitive service industry, the importance of customer satisfaction cannot be de-emphasized.

A commercial bank or business bank is a type of financial institution and intermediary. It is a bank that provides transactional, savings and money market accounts and that accepts deposits. Commercial banks are the deposits of individuals and business. The goal of modern banking system is to provide us with the primary contributors to the economy of the country. It is also profit making institutions that holds the best solution through consultation, design, superior hardware and software and ongoing professional support training.

To keep pace with this situation, we need banking knowledge for future career. If we want to build our career in banking area, only theoretical knowledge would not help us. As internship program is established to gather practical knowledge regarding various sector of economy, I chose to get practical knowledge regarding banking sector and I select Uttara Bank as my organization to work.

The duration of my program was 3months and during this period, I have learned many things. I observed that there is a great difference between theoretical knowledge and practical knowledge. I learned many terms, functions and nature of banking activities. I also get practical knowledge regarding organizational environment.

It covers the mission, strategy of the company and organizational structure, its functions and department of the company. Again I tried including some problems issues and industry analysis and the SWOT of the company.

1.1 Objective of the study:

The prime objectives of the report is to get practical exposure to organizational environment as well as to understand the system and methodology adopted in conducting day to day banking by The Uttara Bank Limited. Besides, this report has been composed to obtain the following objectives.

To analyze the customer satisfaction of Uttara Bank Limited of the customer.

To have an exposed on the banking environment of Bangladesh.

To point out the tools of other tasks adopted by Uttara Bank Limited.

To provide some suggestions and recommendations to improve their performances of marking.

To gain knowledge about the company and its current functions.

Historical background of the company.

To gain knowledge about different jobs functions of banks.

To have some practical experience of job life.

1.2 Area of investigation:

• Internal environment.

• Different branches.

• Corporate office of the bank.

• Customer and guest survey.

1.3 Origin of the report:

This report has been prepared for fulfilling the requirement of the internship program. Duration of the program was for 12 weeks, commencing on March 01, 2011 and finishing on may 30, and 2011.this report was assigned by the help of the supervisor and the employers of uttara bank.

The report title General Banking activities of Uttara Bank ltd.’ has been prepared as a partial fulfillment of BBA Program in Northern University Bangladesh. For this purpose each of the students is required to attach with an organization and has to undertake and involve in investigation on the organization for detailed study.

The basic purpose of this attachment is to expose the student to the real business world. This exposure acquaints his with the practices of modern business world. This exposure is very helpful is seeing for oneself how thing move and to find the gap as well as the similarities between theoretical and practical knowledge.

1.4. Background of the study:

Business world is becoming very much complex day by day. Without sufficient practical experience business becomes difficult and in some cases impossible. The whole world is moving because of business relation. Business plays a very important role in developing economy of a country. So, in the business world, practical experience is regarded as a media through whom we have an acquaintance with the real world.

The Bachelor of Business Administration (BBA) was introduced by Northern University Bangladesh with an objective to supply an adequate number of highly trained and educated graduates to the economy. As the BBA program is the integrated, theoretical and practical method of teaching students of this program are required to have practical exposure in own different major disciplines in the preceding years of their courses.

I was authorized to prepare a report on General Banking activities of Uttara Bank Ltd. for partial fulfillment of my course requirement.

1.5 Scope of the study:

This report covers the actual opinion of the customers or the potential customers and the guests who came through uttara bank of kalabagan branch. It also covers the banking activities, such as payment collection, loan against trust receipts, loans and advance, recovery of loans, reimbursement/C opening, advising, negotiating, and confirmation, foreign and local remittance of bank, bill receive and bill collections, issuing of D.D,P.O,M.T,T.T as well as problems in banking process.

Scope in this section is very broad to analyze, as information is very unavailable human resource department and customer care department are the major scope while doing this study and also the website has helped me also to collect data. Only problem that occurred while collecting the problem issues. This problem and performance analysis of kalabagan branch of Uttara Bank Limited was carried out to determine the progress of bank in the future.

1.6 Methodology:

This methodology was chosen to provide an initial rapid assessment of this complex and dynamic sector. Basically, this is a theoretical study. But there are some quantitative information incorporated to pin point the reality. Throughout the study, several subjects are highlighted requiring further study. The methodology of the report includes direct observation, oral communication with the employees of all departments of Uttara Bank Limited kalabagan branch, studying files, circulars etc as well as practical experience. This information of this report has been collected from two sources:

1. Primary sources:

*Practical desk work.

* Face to face conservation with the officers.

*Getting information from questionnaire survey on customers of satisfaction.

2. Secondary sources:

*Annual report of UBL.

*Website of UBL.

*Newspaper (financial express).

*Documents of UBL kalabagan branch.

*Bangladesh bank circular.

*Desk report of related department.

1.7: Business portfolio of uttara bank:

The aim of the Bank is to participate actively in the socio-economic development of the nation by operating a commercially sound Banking system. It provides credit to deserving borrowers and at the same time protects depositors' interest and thereby earning more and more profit for the shareholders. In simple, to secure deposit from the customer and to lend the deposit again to customer is the Uttara business of Uttara Bank. Apart from traditional Banking activities, Uttara Bank facilitates its clients with extending credit to traders to boost up their business, to finance export import trade, to finance industrial sector and to support financially to different priority sectors. Financing small and medium enterprise with particular attention to export business and agro based industry has been focused. Small loan scheme for small entrepreneur is an innovation in the credit scenario of Uttara Bank. Here are the main activities of Uttara Bank described briefly.

1.8 Limitation:

There are many factors which affected me on my way making the report General Banking activities of UBL; I have much personal limitation for which I failed to prepare a better report. Some Limitation which affect me are given below-

• I have no of previous experience which is hampers my work.

• For the Lacking of sufficient data I am failed to make the report highly

informative.

• To prepare this report I have faced a lot of problems such as time limitation.

• Less co- operation from respondent etc.

• They do not use modern equipment to record the databases regarding the

customers and clients.

• As there are not any report ,literature ,publication on the past so collection of

different data may not Wholly representative.

CHAPTER: 2

Organization’s overview of

Uttara Bank Limited

2.0 Overview of Uttara Bank Ltd

Uttara Bank Ltd. had been a nationalized bank in the name of Uttara Bank under the Bangladesh Bank (nationalization) order 1972, formerly known as the Eastern Banking Corporation Limited. The Bank started functioning on and from 28.01.1965. The government of Bangladesh nationalized all the banks of the country under president’s order no 26th of 1972 for the purpose of exerting social control over the resource of the country. They undertaking of the existing banks was renamed. As a result Uttara Bank Ltd was formed. Uttara Bank Ltd. formed talking over all the assets and liabilities of the “Eastern Banking Corporation Limited” of former East Pakistan.

It was the only Bengali own private bank in East Pakistan. Uttara Bank Ltd. Converted as a public Limited company in the year 1983. The Uttara Bank Ltd. Was incorporated as a banking company on 29.06.1983. Uttara Bank Ltd. Was incorporated as a company with an Authorized capital of Tk.20, 00, 00,000 dividend into 20, 00,000 shares of Tk.100 each. The bank obtained business commencement certificate on 21.8.1983. The bank floated its shares in the year 1984. It has now 211 branches all over the Bangladesh through which it carries out all its banking activities. The bank listed in Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. as a publicly quoted company for trading of its shares.

2.1 Vision Statement:

To stand out as a pioneer banking institution in Bangladesh and contribute significantly to the national economy.

2.2 Mission Statement:

❖ High quality financial services with the help of the latest technology.

❖ Fast and accurate customer services

❖ Balance growth strategy

❖ High standard business ethics.

❖ Steady return on shareholders’ equity.

❖ Innovative banking at a competitive price.

❖ Quality human resource.

❖ Firm commitment to the society and the growth of national economy.

2.3 Organizational Structures of Uttara of Bank Limited:

Truly organizational form follows function, for Banks usually are organized to carry out the roles assigned to them as efficiently as possible. Bank size is also a significant factor in determining how Banks are organized. However, a Bank's role and size are not the only determinants of how it is organized or how well it performs. Government regulation too has played a major role in shaping the performance and diversity of banking organizations that operate around the globe. The organizational structure of Uttara Bank Ltd. is as under:

|Organizational Structure |

|Chairman |

|Vice Chairman |

|Directors |

|Managing Director |

|Additional Managing Director |

|Deputy Managing Director |

|Executive General Manager |

|General Manager |

|Deputy General Manager |

|Assistant General Manager |

|Senior Principal Officer |

|Principal Officer |

|Senior Officer |

|Officer G-II |

|Assistant Officer |

2.4 Bank’s Own Premises:

A magnificent 18 Storied Bank’s own building located at the hub of Motijheel Commercial Area within the Metropolitan City of Dhaka signifies the concrete symbol of tradition and stability of the Bank. Different Departments of Head Office and Corporate Branch have been functioning in the same building covering 10 floors. The remaining 8(Eight) floors have been rented out to the different Insurance Companies and Commercial Enterprises. Local Office, Eastern plaza Branch, Hotel Isakha Branch, Dar-us-Salam Road Branch, Lease Financing Unit in Eastern Tower Building, Nabagram Branch in Manikgonj, Zonal Office and KDA Branch in Khulna and Shaheb Bazar Branch in Rajshahi are also working in other Bank’s own Building

2.5 Uttara Bank at a Glance:

UBL is one of the largest private banks in Bangladesh.

It operates through 211 fully computerized branches ensuring best possible and fastest services to its valued clients.

The bank has more than 600 foreign correspondents worldwide.

Total number of employees nearly 3,562.

The Board of Directors consists of 13 members.

The bank is headed by the Managing Director who is the Chief Executive Officer.

The Head Office is located at Bank’s own 18-storied building at Motijheel, the commercial center of the capital, Dhaka.

2.6 Graphically UBL Countrywide Branches:

2.7 Zonal Offices of UBL:

|Dhaka Central Zone. |Khulna Zone. |

|Dhaka South Zone. |Sylhet Zone |

|Dhaka North Zone. |Barisal Zone. |

|Narayangonj Zone. |Mymensingh Zone. |

|Chittagong Zone. |Bogra Zone |

|Rajshahi Zone. |Comilla Zone. |

2.8 Credit Risk Management:

Credit risk is the possibility that borrowers may fall to meet their obligation in accordance with the agreed terms. So, it is essential that banks have robust Credit Risk Management policies and procedures. UBL always acknowledge that effective risk management is the key to steady and stable growth for the bank. The loan application assessment process starts at the branch level by the relationship managers through zonal office and ends at Credit Risk Management approval unit. CRM Unit analyses the proposal from different perspectives in line with lending policy of the bank. Then if the proposal is found business worthy CRM unit place sit to the credit committee and the concerned authority approves the loan.

2.9 Foreign Correspondents and Exchange Houses:

The bank kept on developing and maintaining correspondent banking relationship with the reputed deserving Banks. The expansion of network has helped the Bank to increase its foreign business. The network covers most of the important business and trade centers in the world. After enlistment of the bank as a member of SWIFT and for effective expansion of its networks the inter-bank remittance has been increased and as a result the bank is able to remit the fund the customer quickly.

The total number of Foreign Correspondents and Agents of the Bank was 696 as on 31-12-2011 which was increased by 48 than to previous year. At the same time the Bank handled Foreign Remittance business through 55 Exchange Houses one among them, named “Arabian Exchange Co. W.L.L” of Doha at Qatar has been functioning under Bank’s own Management. On the other hand Bank has tied with contract with America based international money remitting organization named “Money Gram” through which expatriates can remit their money to home from any corner of the world. Payee gets the proceeds through their 207 branches with their best efforts in short time.

|Table 2 FOREIGN CORRESPONDENTS OF UBL |

|SL |Country – No. |SL |Country -No. |SL |Country - No. |

|1. |Australia – 6 |2. |Belgium – 9 |3. |Saudi Arabia - 23 |

|4. |Czech Republic - 2 |5. |China – 15 |6. |France – 14 |

|7. |Germany- 14 |8. |Greece – 5 |9. |Hong Kong -31 |

|10. |India – 22 |11. |Indonesia – 12 |12. |Italy -16 |

|13. |Japan – 25 |14. |Luxemburg – 6 |15. |Malaysia – 9 |

|16. |Netherlands - 5 |17 |Pakistan – 6 |18. |Philippine – 5 |

|19. |South Korea – 1 4 |20. |Spain- 10 |21. |Switzerland – 9 |

|22. |Singapore - 21 |23. |Taiwan – 10 |24. |Thailand – 9 |

|25. |Turkey - 5 |26. |UAE-7 |27. |UK- 13 |

|28 |USA – 28 | | | | |

2.10 Foreign Remittance and Products:

Uttara Bank Ltd. has been a successful year in 2009 in terms of expansion of its remittance business with its foreign correspondent and exchange houses. The volume of foreign remittance in the year 2009 stood at Tk. 29, 575.3 million as compared to the volume of Tk. 28,728.1 million in preceding year registering an increase of 2.95 percent. In order to keep pace with the time a scheme namely “Express Payment Scheme” has been introduced for inward remittance by using modern equipment. Under this scheme a payee having his account with any branch of Uttara Bank Ltd. Gets the proceeds of remittance sent from any part of the world within 2(Two) hours. Besides, in order to ensure speedy and improved service the Bank has also introduced “Instant Cash Scheme” for payment of foreign remittance in cash to the customers who have no account with the Bank on submission of Passport/Driving license/Remittance card (issued by this Bank)/Voter ID card/ Credit card etc. as identity. Under the scheme the Bank will make payment of the proceeds in cash if the Bangladeshi expatriates send their money furnishing the passport/card holder’s name and number of the passport/card. Under prior arrangement, the remitting company remits their drafts printed at International Division through the web site and delivered the same to the beneficiary’s home address for payment of money equivalent to foreign currency under a scheme named “Instant Draft”.

2.11 Training and Human Resources:

The bank give utmost importance for making continues investment in Research and Development and d training to achieve operational efficiency in the competitive global banking scenario. The bank’s human resource policy is to recruit and build up quality manpower having skill and professional expertise. Skilled human resource is life blood for development of any service industry. The Training Institute of the Bank situated at Eastern Plus, Dhaka which is nicely decorated and equipped with the sophisticated instruments has been striving to bring about a qualitative change in human resources of the Bank by imparting continuous different training throughout the whole year. Besides’ this, a number of executives and officers were sent to various Training Institutions including Bangladesh Institute of Bank Management (BIBM) and abroad for higher training. During the year 2009 the training Institute of the Bank arranged 17 different training courses for the officers and members of the staff of the Bank in which as many as 807 officers and members of the staff of the Bank participated. At the same time 229 officers and members of the staff of the Bank attended training courses/workshops/seminars conducted by BIBM, 30 officers received training from Bangladesh Bank, 8 officers obtained training from other training Institute and 12 officers obtained training from abroad.

|(a) Executive (Asst. General Manager & above) |147 |4.23% |

|(b) Officers |2,225 |64.01% |

| I Asst. Officers |327 |9.41% |

|(d) Others |777 |22.35% |

|Total: |3,476 |100.00% |

2.12 Audit and Inspection:

Under Internal Control and Compliance the bank has separate Audit and Inspection Unit engaged in identify lapse and irregularities in the field level and also to find corrective measures. Experienced Officials regularly audit and inspect the activities of the Bank throughout the year. During the year 2009 Bangladesh Bank Audit & Inspection Team undertook Audit & Inspection works in 19 Authorized Dealer branches, 64 other branches and Head Office.

Chapter: 3

Overview of Kalabagan Branch

3.0 Organizational Overview of Kalabagan Branch.

Kalabagan Branch is one of the important branches of UBL, Dhaka-1205 The branch has authorized dealership(AD branch) of the Bangladesh Bank for foreign exchange business, it is one of the important and growing sections of Dhaka city with good prospect of trade, commerce and industry. The branch was shifted to the present location as per relocation plan of UBL. Without a set back of large default in 1998, branch is one of the large profit earning branches of UBL. In the current year, (i.e., 2008this branch, despite losses in the initial months due to previous loan default, earned a handsome year-end profit of Taka 26 lacs, it has a rich deposit of Taka 40 crore and interest earning assets of Taka 26 crore.

The branch is headed by a manager at the level of Senior Principle Officer and manned by a team of 16 officers and other employees, of which 2 are Senior Principal Officer, 3 Principal Officer, 2 Officer Grade , 1 Office Grade, 6 Assistant Officer and 2 Other employees. The organizational structure of corporate branch is given at UBL Kalabagan Branch:

ORGANOGRAM OF KALABAGAN BRANCH

3.1 Commercial Banking:

Uttara Bank is largely involves in commercial Banking operation. Besides providing quality services to customer, priority has been given to expand free-generating business and low-risk products.

3.2 Corporate Banking:

The Bank's corporate division department has successful in developing project finance business, and the Bank has been involved in many key project finance operated in Bangladesh. The Bank has institute several initiatives in the corporate Banking department to improve asset quality. These initiatives include an independent review of all credit proposals by Risk Management Department and use of risk rating system to improve objectivity in the evaluation of credit proposal.

3.3 Products and Services (Financial Product):

The products and services of Uttara Bank Limited can be broadly classifies into two groups. i.e. depository products, loan products. These are given below.

Figure: various services provided by Uttara Bank LTD (UBL)

3.4 Retail Banking:

The Bank's retail banking business continues to be very active. The Bank has a network of Two hundred two (202) branches in the country. The Bank has sharply focused on key customer segments to profitable deliver a well tailored set of products and services through expanded distribution channel with high levels of efficiency and productivity. During the last three years, Uttara Bank has also created a few field sales and service organization for expanded customer reach.

3.5 Loan Products:

The Uttara Bank Limited is offering the following loan and advances products to the client for financing different purposes that fulfill the requirements of the Bank and have good return to the investment as well satisfy clients.

3.6 Management of the Bank:

Board of directors is the sole authority to take decision about the affairs of the business. There are 12 directors in management of the Bank. All the directors have good academic background and have huge experience in the business. The Boards of directors hold meeting on a regular basis. There are different committees in the Bank for the efficient management of the Bank.

← Board of directors.

← Policy committee.

← Executive committee.

← Credit committee.

3.7 Depository Products:

Uttara Bank Limited is now offering different depository products for mobilizing savings of the general people. These are:

Chapter: 4

Internship Position & Duties

4.0 The Internship Program:

I did me Internship at Uttara Bank ltd. in Kalabagan Branch from March, 01 to May 30, 2011 opportunity to work as an Internee in Bank by the head of Human Resources Uttara Bank Ltd.

4.1 The Job Description:

It was clearly mentioned in my joining letter that I was supposed to give regular attendance at the place where I would be deputed to work on my project. As an Internee I was suppose to perform the following the works.

❖ General Banking.

❖ Data Entry.

❖ KYC as well their satisfaction.

Although during my entire Internship program at Uttara Bank Ltd. I was deputed in all department part by part for a very little period of time may be for my background (Major in Marketing) as a result my work was to the data entry, Manager and maintaining clean cash report, Cheque Posting, Writing pay Orders, amount calculation and performing some support activities for the Foreign Exchange department, receiving phone calls for TT MT, Besides this I had worked to survey to know the customers satisfaction about this bank.

4.2 The Daily Routine :

As Internee my daily work could be divided into two phases. During this two phases my working time, working style was completely different. Description of the two phases are as follows.

In the pressure phase my working hour started from 9.00 AM in the morning and normally ended at 5.00 PM. I had to perform some support works such as helping customers for money gram writing, receiving TT, MT, SC, LSC data & entry in the documents. Putting the bank authorization seal and filling the blanks of authorized to fill by the bank personnel etc.

There were a number of periods when the working pressure as not that much. In this phase I worked my own survey. I went to the customer and took their opinion to complete my topic. If there is any fault then I hade to complete those vouchers as far as I am authorized. One of the doing and how they are performing their duties and sometimes I had to help the officers in filling documents and finding documents. In this period of work I did another thing that up my research questionnaire by the depositors of the bank whenever possible, with these daily works my entire internship period completed in the Uttara Bank Kalabagan Branch.

4.3 Learning Points:

▪ I have learn about opening individual account, Bank transaction over phone.

▪ I have learn about the scrolling and transferring data. Putting the bank authorization seal and filling the blanks of authorized to fill by the bank personal.

▪ I have learn how to printout customers account statements and how to fulfill money gram form.

▪ I work there as a market researcher and provided necessary information relating to my topic.

▪ I have learn the preparation of bill, requisition, office memo etc.

▪ With the process of internship program I learn to cope with the official environment and also gathered experience of working in a company with different levels.

▪ I learned how to work under a supervisor.

▪ Self motivation is a prime stimulus. I learned different tricks o self motivation and discovered the necessity of self motivation.

▪ I learned how to mange men tactfully, which is main requirement for the management level.

▪ To get my job done, I learned that how I could motivate one to have my job done by him. I am influenced by supervisor to enrich my motivating power. He set examples by motivating me in an innovative way.

▪ I learned to be punctual, building up responsibility, taking activities and also deal with work stress.

▪ Communicating with clients, soothe them and serve their purpose in a best way, where the company's goal also exists' was a package learning from the organization.

▪ I discovered how a decision process works, how it is organized, whose are'the participants, and how the message of the decision making process convey to the different level of the company and how it is accomplished and the result and evaluation process.

▪ My accomplishment of three months internship program at UBL is an accomplishment of my expectation about job environment, corporate behavior and especially learning about my intern topics. I have got their friendly environment, where they helped me especially my supervisor to organize my task and in its proper accomplishment and also simultaneously helped me by providing in formations, guidelines for accomplishment of my internship report.

▪ I am working for a job, where I could have at least same job environment provided by UBL. I won't mind different jobs to develop my accomplishment if I get the opportunity.

▪ This short term program helped me to increase my desire or make it stronger to become a manager. Because now I consider myself more confident because now with theoretical knowledge, I have got also some practical knowledge. Now I know how a manager manages his sub-ordinates, motivate them and also same time gets the job done.

▪ As internee, I worked at UBL at sales and marketing division, where I had to work with strategy, market research, market analysis, product analysis, financing etc whose were my field of interest and also major field of my study.

Chapter: 5

General Banking

5.0 General Banking:

General banking is the heart of the banking operations as it is involved in drawing deposits from the surplus units for creating assets of the bank; so that these assets can be utilized by providing loans and advances to deficit units, which is the major source of bank's earning. This department provides everyday services to the customers and thus, it is also known as Retail banking. The major functions of general banking are: accept deposits, provide cash by honoring checks on customers' demand, remit funds, open account, issue checks etc. These functions are further elaborated in the subsequent paragraphs.

5.1 Account Opening, Transfer and Closing:

Customer relationship with the bank begins with the opening of account and if builds the first impression of customers on the banking services. Thus, general banking has very important role of building customer attraction. The account opening is done on an application of the customer with due investigation of the personal accounts and identification of another account holder of the same bank. Any person except minor, insolvent, bankrupt, lunatic can open bank account.

5.2 Account Transfer and Closure:

In UBL, transfer.4.2 Account of account is allowed from one branch to another on request of the account holder duly justified. In this case, the original signature card is transferred to the new branch, when the manager approves the transfer, when customer desires so, the account is inoperative for long time, in case of customers' death, insanity or insolvency or on court order. To close an account, the account holder must return the checkbook and pay taka 200 as closing charge.

5.3 Issuing Check Book:

Checkbooks are issued to account holder on opening new account or as replenishment of old checkbook to old account holders against requisition on the prescribed application form. For security purpose, a security number is generated for every leaf of the book by the manager or authorized person and necessary entries are made in Check Issue Register. In case of lost checkbook, duplicate book is issued duly verified in respect of signature.

5.4 Depository Products and Services

Corporate branch accepts both demand and time deposits. To make deposit transactions, the branch offers the following types of accounts:

[pic]

5.4.1 SB Accounts

Small-scale savers generally operate SB accounts and the account holders can earn interest at a yearly rate of 5.5% twice in a month depending on the monthly minimum balance. There is restriction on withdrawals in a week and large amount withdrawal is permitted with prior notice.

5.4.2 Current Accounts:

Current account is a demand deposit account, where there is no restriction on withdrawals. This type of account is most suitable for the depositors who need to deposit and withdraw money frequently. Individuals, traders, import & exporters, general merchants, other business & non-business enterprises, manufacturers, government offices etc generally handle this type of account. This is being demand deposit and bank's cost of handling this account is considerable due to frequent transactions, no interest is payable to the account holders on their deposits. Rather, the customers need to pay Taka 200 as incidental fee.

5.4.3 STD Accounts:

When the depositors need not to make frequent withdrawals of their money, this type of account is justified as it earn interest @ 5.00% per annum, although lesser than SB accounts. The large companies, organizations, various government departments maintain STD accounts where frequent withdrawal is discouraged. This type of depositors normally uses STID account to transfer excess money from current account in order to earn interest.

5.4.4 Deposit Pension Scheme:

This scheme was introduced along with other commercial banks in order to attract deposits from small-scale savers as an old age security with very high interest rate. But at present, this product/service has been discontinued as it incurs high cost of fund.

5.4.5 Fixed Deposit Receipt (FDR):

FDR are time deposits or time liabilities. In this deposit scheme, a customer deposits an amount of cash in Bank for a specified fixed period. On application from the customer, an Fixed Deposit account is opened and FOR is issued in his favor duly agreed upon by the bank and the applicant in terms of: interest rate, maturity period, account handling procedure (joint/single), date of issue and maturity. FOR being a time liability, the bank needs not to maintain any cash reserve for this deposit. Thus, UBL offer considerably high interest rate for such deposit scheme. But as the interest rate changes continuously due to intense competition and changing monetary policy of the government, JBL does not offer long-term FOR product. However, renewal is allowed at the current interest rate on maturity. The current rates of interest and maturity period as offered by UBL Corporate Branch are given in Table 3 below:

|RATE OF INTEREST ON FOR AND MATURITY PERIOD |

|Maturity Period (months) |Interest Rate |Pre-mature Encashment and Interest Rate |

|=> 3 and 6and< 12 |8.5 |Before 3 months - at SB rate. Before maturity but completes 3 months -at 3 months rate|

| | |for 3 months period. |

| | |Before 3 months - at SB rate. Before 6 months - at 3 months rate for 3 months period. |

|=>12and 24 and ................
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