General Banking Activities of Uttara Bank Limited

Executive Summary

This report is prepared as a partial fulfillment of requirements of RMBA program at Northern University of Bangladesh. This report focuses three months working experiences in Uttara Bank Ltd, New Market Branch. This report will give a clear idea about the general banking activities of Uttara Bank Ltd, New Market Branch.

Uttara Bank Ltd is one of the pioneer private commercial banks in Bangladesh established in 1964. It has rending banking services in Bangladeshi economy for 45 years. It is working with 207 branches al around the country, in rural and urban areas. Uttara bank Ltd. Provides both consumer and business banking services. Beyond own banking activities it has some agency services for the organizations or interest. In consumer banking UBL collects deposits from the group of people or organizations who have surplus amount of money and the give a percentage of interest for those deposits. On the other hand, they provide loans or credits to the group of people or organizations those need it and bank charge a higher rate of interest rather then the interest on deposits.

Uttara bank Ltd Offers different types of deposits for the different income group and professionals in our society such as current account, short term deposit, monthly profit based scheme and fixed deposits and so on. They offer attractive interest for those types of deposits.

Uttara bank Ltd has huge resources, experience, expertise, and knowledge about banking. But they are not utilizing them property. Customers are not much satisfied having their services. Customers are expecting more friendly and modern services that are being provided by the other private commercial bank.

CHAPTER ONE

INTRODUCTION

Introduction

 Introduction of the report:

Now a day’s banking sector is modernizing and expanding its hand in different financial events every day. At the same time the banking process is becoming faster, easier and is becoming eider. In order to survive in the competitive field of the banking sector all organizations are looking for better service opportunities to provide their fellow clients. So it has becoming essential for every person to have some idea on the bank and banking procedure.

Internship program so called work attachment program an essential for every RMBA student because it helps him or her to acquaint with the real life situation. As bank is one of the most important financial intermediaries. So I have selected Uttara Bank Limited, which is one of the most leading bank.

Scope of the study:

The report will illustrate a basic reflection about the Uttara Bank Limited present condition of the bank in private banking sector, various schemes of Uttara Bank Limited, interest rate and activities & various departments of General Banking of Uttara Bank Limited etc. However I could get the opportunity to work in Customer Service department which I feel necessary to have clear understanding about the activities of the bank.

Objective of the report:

The main objective of the report is to fulfill the requirement of BBA program. For this I had to attach with an organization and I chose Uttara Bank Limited. For this I have some practical job related experience with my academic knowledge.

The objective of the study may be viewed as:

  General objective

  Specific objective

 General Objective:

The general objective of the study is to prepare and submit a report on the topic of General Banking Activities of Uttara Bank Limited, New Market Branch.

Specific Objective:

  To know the General Banking which include customer service, clearing section, and cash department of Uttara Bank Limited.

  To understand the banking environment of Bangladesh.

  To submit the practical work as a paper work that I have learned in my three months internship of RMBA program.

 Methodology:

This report is prepared by the observation and on the job training method. The report discloses all the things that the writer learned and done during the internship period. The writer made conversation with the executives and senior executives many times. The writer Some times got the opportunity to conversations with the customers. This helps the writer identifying their problem.

(A). COLLECTION OF DATA

This report is an exploratory and descriptive one in nature. Among primary secondary source, most of the data has been collected from the secondary sources.

Primary sources of information:

  Face to face conversation with the bank officals.

  Face to face conversation with the clients of the bank.

 secondary sources information:

  Annual Report of  uttara Bank Limited

  Various publications of Bangladesh Bank.

  Different books and newspaper  articales written on financial statement of the banking sector.

  Internet.

(B). PROCESSING OF DATA

Collected data were compiled processed for the purpose of preparing this report.

(C).PRESENTATION OF DATA

 Collected data were  compiled in charts and tables and presented in the body of the report.

Rationale of the Study:

Bank is the heart of the economics and banking is the blood circulation of country’s economic growth. Banks perform a significant role to serve the needs of the society in different sectors, such as: capital formation, large scale of production, industrialization, growth of trade and commerce etc. and banks are contributing a lot of aspect. Uttara Bank Limited is one of the oldest and largest commercial banks in private sector in Bangladesh. It provides mass banking services to the customers through its branch network all over the country. So I have tried to represent their performance and problems and prospects on the ground of general banking.

 Limitation of the Report:

Limitation of time: Major limitation of this report is time constrain and availability of the reference book.

Lack of Secondary Data: The annual report was the main secondary Information source of private information that was not enough to complete the report and the reader a clear idea about the bank.

Limitation of the Scope: While collecting data, they did not disclose much information due to the confidentially of the organization.

CHAPTER TWO

OVERVIEW OF THE ORGANIZATION

 Introduction of Uttara Bank Limited:

Uttara Bank Limited is one of the oldest and largest commercial banks in private sector in Bangladesh. It provides mass banking services to the customers through its branch network all over the country. This bank has been playing a vital role in socio-economic, industrial and agricultural development as well as in the overall economic development of the country since its inception through savings mobilization and invests of funds.

The prosperity of a country depends on its economic activities. Like any other sphere of modern socio economic activities, banking is a powerful medium of bringing about socio economic changes of a developing country. Without adequate banking facility agriculture, commerce and industry cannot flourish. A suitable developed banking system can provide the necessary boost for the economic growth of the country. Because banking system is linked with the whole country.

Uttara bank limited, a private commercial bank, offers a range of mass banking services and products in Bangladesh. Its deposit products include savings bank accounts, fixed deposit accounts, short term deposit accounts, current accounts, pension accounts and foreign currency accounts. The bank’s loan and lease service comprise micro credit, small and medium enterprise financing, industrial loans, working capital financing, export credit, import credit, bills purchase, letter of credit, letter of guarantee, lease financing, transport financing, consumers loan schemes and house building loans. It also offers various remittance services, including remittance of fund from abroad by Bangladesh.

 Uttara Bank Limited at a Glance:

 History of Uttara Bank Limited:

At first Uttara Bank was established in 1964 named Eastern Banking Corporation. After liberation war it named Uttara Bank. In 1984 published market share and named Uttara Bank Limited. Uttara Bank is one of the oldest and largest commercial banks in private sector in Bangladesh, with years of experience. Adaptation of modern technology both in terms of equipment and banking practice ensures efficient service to clients. 207 branches at home and 600 affiliates worldwide create efficient networking and reach capability. Uttara is a bank that serves both clients and country. The bank is listed in the Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly quoted company for trading of its shares.

Vision of Uttara Bank Limited:

Its vision always strive to achieve superior financial performance is considered a leading Bank by reputation and performance.

  To established and maintain modern banking techniques, to ensure the soundness and development of financial system.

  Try to encourage saving in the form of direct investment.

  Be one of the best banks in the Bangladesh.

  To contribute in the socio-economic development of Bangladesh.

  To established relationship banking and improve service quality through development of strategic marketing plan.

  To ensure optimum utilization of all available resources.

 Mission of Uttara Bank Limited:

To established banking through the introduction of welfare oriented banking system and also ensure equity and justice in the field of all economic activities, achieved balanced growth and equitable development through diversified investment operations particularly in the priority sectors and development areas of the country. To encourage socio-economic uplift and financial service to the lower income community particularly in the rural areas.

 Strategies of Uttara Bank Limited:

  To strive for customers best satisfaction & earn their confidence.

  To manage & operate the Bank in the most effective manner.

  To identify customers needs & monitor their perception towards meeting those requirements.

  To review & updates policies, procedures & practices to enhance the ability to extend better services to the customers.

  To train & develop all employees & provide them adequate resources so that the customers needs are reasonably addressed.

  To promote organizational efficiency by communicating company plans, polices & procedures openly to the employees in a timely fashion.

  To cultivate a congenial working environment.

  To diversify portfolio both the retail & wholesale markets.

 Function of Uttara Bank Limited:

Functions of UBL are based on profit earning (as commercial bank), social welfare and development of country. They usually have following functions:

  To maintain all types of deposit accounts.

  To make investment.

  To conduct foreign exchange business.

  To extend other banking services.

  To conduct social welfare, activities through banking.

  To finance in industrial sectors like BSB, BSRS, and SME.

  To finance in house building.

  To make the lifestyle easy through banking services.

Motto of Uttara Bank Limited:

      “Abohoman Banglar Oitijje Lalito

Board of Director:

  Chairman

  Vice-Chairman

  Director

  Managing Director

  Secretary

2.10 Nature of Business:

The bank is carrying out commercial, corporate, investment and retail banking related services to its customers through its 207 branches following the provisions of the bank company act 1991 as follows;

  Corporate finance

  Corresponding banking

  Documentary credits

  Foreign exchange

  Guarantees

  Syndicated finance

  Other related business

Corporate Social Responsibility:

Uttara Bank Ltd embraces a culture of continuous involvement to fulfill our corporate social responsibility. We have a deep commitment, loyalty and a high sense of responsibility to our nation and its people. Uttara Bank Ltd conforms to all of the stringent regulations issued by the Government and the Bangladesh bank. As part of our corporate social responsibility, bank contributes greatly to the nourishment of the country’s all types of calamities, arts, culture and sports. As part of its strong commitment to upholding corporate social responsibility, bank donated Tk 10.00 million to Chief Advisor’s Relief Fund to help the massively distressed people who were affected by flood & devastating cyclone ‘Sidr’ in 2007.

CHAPTER THREE

OVERVIEW OF NEW MARKET BRANCH

 Introduction of UBL, New Market Branch

Uttara Bank, New Market Branch is situated at the 1stfloor of 54, New Market Area, Dhaka-1205. The bank is designed under two floors. It has been providing banking services for the customers of New Market area.

 Objectives

  To provide banking service to the people within the commanding area.

  To keep position in the competitive market.

  To contribute in profitability of UBL.

 Departments of the Branch

  Account opening (Front Desk) department.

  General Banking Department.

  Cash department.

  Investment department.

  Foreign Trade department.

  Clearing department.

 Number of Employees of the UBL, New Market Branch

Statement of Affairs of UBL, New Market Branch (As on 30-06-2011)

 Products of UBL New Market Branch

 Deposit Modes

  Fixed Deposit

  Double Benefit Deposit Scheme

  Deposit Pension Scheme

  Monthly Deposit Scheme

  Bearer Certificate of Deposit

  Short Term deposit

  Savings Bank Deposit

  Current Account

  Foreign Currency Deposit

Remittance

  Pay Order

  Demand Draft

  Telegraphic Transfer

  Mail Transfer

 Service

   Express Money

  Money Gram

  Instant Cash

  SWIFT Service

  International Money Order

Investment Modes

  Demand Loan (HouseBuilding / Apartment)

• HouseBuilding General
• HouseBuilding Commercial

  Agricultural Loan (Production)

• Loan to Primary Procurers
• Loan for Tea Crop Production

  Term Loan

• Small Industries
• Medium Industries
• Large Industries

Export Financing

• Ready Made garments / Others
• Jute Products and Others

Commercial Loan

• Financing Towards the Agro based Businessman
• Loan to Agricultural Inputs Traders
• Fertilizer Dealers / Distributors
• Jute Trading

Other Loan

• Loan Against FDR
• Loan Against DPS                                                                      

Other Loans & Lease Service

  Over Draft

  Micro Credit

  Export Credit

  Import Credit

  Bills Purchases

  Loan on Securities

  Loan on Secured Mortgage

  Payment Against Documents

  Loan Against Imported Merchandise

  Export Development Loan

Foreign Exchange Modes

  FCAD Account (Foreign Currency Account Deposit)

  NFCD Account (Non Foreign Currency Account Deposit)

  RFCD Account (Residential Foreign Currency Deposit)

CHAPTER FOUR

STUDY OF THE WORK

 General Banking:

Financial institution/ intermediary that mediates or stands between ultimate borrowers and ultimate lenders is knows as banking financial institution. Banks perform this function in two ways- taking deposits from various areas in different forms and lending that accumulated amount of money to the potential investors in other different forms.

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. In some general banking activities, there is no relation between banker and customers who will take only one service form the bank. On the other hand, there are some customers with who bank are doing its business frequently. 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. since bank in confined to provide the service everyday general banking is also known as retail banking.

General Banking consists of the many sections in the branch. These are:

  Customer Service

  Account Opening/Closing

  Payment Order Issue

  Demand Draft Issue/Collection

  T.T. Issue/Collection

 Account Transfer

  IBC/OBC Collection

  Deposit Department

  Clearing Department

  Cash Department etc.

 General Features of General Banking:

  Issuance of token, Maintenance of subsidiary day Book, writing of day Book, balancing of Ledger.

  Opening of A/C like – Savings A/C, Current A/C, Short Term Deposit A/C, writing of A/C opening registers and issuance of pass book and cheque Book etc.

  Maintenance of current A/C ledgers, deposit ledger and FDR ledger and operation.

  Writing of transfer scroll, statement of current A/C and deposit A/C.

  Bills: Outward & inward Bills (OBC & IBC) and clearing.

  Remittance: Issuance and payment of DD, TT, PO etc.

  Writing of clean cash Book and posting of General Ledger.

  Maintenance of charges, suspense and sundry deposit A/C, maintenance of dead stock and stationery articles registers.

  Schedule Telegram and preparation of General ledger A/C statement.

 Customer Service:

Customer service includes provide information to all type of customer queries. Each day many people come to the branch with various types of problems. Some of information is like Account opening requirements, DPS related information, FDR information, Give instruction for address change, signature change, nominee change, and account closing information, DPS closing information, FDR closing formalities, pay order, document issue and all type of queries.

 Account Opening

It is said that there is no banker customer relationship, if there is no account of a person in that bank. By opening an account banker and customer create a contractual relationship. However, selection of customer for opening an account is very crucial for a bank.

Account Opening Procedures in a Flow Chart

 Before opening of a current or savings account, the following formalities must be completed:

   Application on the prescribed form.

  The customer information must be filled up with the form.

  Introduction: The following persons can introduce an account opener;

• An existing current/savings account holder of that branch.
• An offer of that branch (not below of the rank of an Assistant officer).
• A responsible person of the society or locality who is well known to the Manager/2^nd man of the branch concerned.

  Furnishing photographs.

  Banker will supply a set of printed forms required for opening the account which will normally include:

• Specimen Signature cards (SSC).
• Deposit Slip Book.
• Check Book Requisition Slips.

  Customer should carefully read and fulfill the application form.

  Putting specimen signatures in the specimen card.

  Any special instructions with regards to operation of the account should be noted.

  On the relevant signature card boldly duly authorized buy the account holder should be obtained.

  The required Account Number of the new account should be obtained from the Account Opening Register.

  Obtain the signature and account number of the Introducer on the advice and getting the signature properly verify by an Authorized official of the bank

  The deposit slip properly filled in and signed by the customer.

  Then the new account number should be written at the appropriate place of the deposit slip and mark new Account on both the copies of the Deposit slip and request the customer to deposit the money at the cash counter.

  Place the signature cards, Advice of new account, a copy of Deposit slip, photographs and other necessary papers/documents etc. in a file.

  Obtain approval of the authorized officer for opening the new account on all relevant papers while giving approval for opening an account the authorized official should be satisfied about the introducer.

   The authorized officer on the advice of new account and on the specimen signature cards should also attest the signature of the new account holder.

    After approval of the opening of the account, get the Cherub book requisition slip signed be the customer.

  Deliver the cheque book to the customer after properly marking the account number, name and place of the branch on each leaf of the cheque.

On completion of account opening, open a file for the new account holder and file relevant papers forms etc. Signature cards, copies of Advice, Deposit slip etc. is distributed to concerned departments.

 Papers and Documents Required for Account Opening

 Savings Bank Account (SB)

  Passport size photograph – two copies.

  Introducer’s signature in the account opening card and photograph.

  Nationality Certificate/Passport’s photography (duly attested)

  Nominee’s photograph.

  Mother’s name.

  Date of Birth and Age.

Current Deposit (CD)

• Individual Account

  Passport size photograph – two copies.

  Introducer’s signature in the account opening card and photograph.

  Nationality Certificate/Passport’s photography (duly attested)

  Nominee’s photograph.

  Mother’s name.

  Date of Birth and Age.

  TIN papers.

• Proprietorship Account

  Passport size photograph – two copies.

  Introducer’s signature in the account opening card and photograph.

  Nationality Certificate/Passport’s photography (duly attested)

  Nominee’s photograph.

  Mother’s name.

  Date of Birth and Age.

  TIN papers –

• Trade License (valid)
• Seal/Rubber Stamp.

• Partnership account

  Passport size photograph of account operator (Authorize by parents) – two copies (each).

  Introducer’s signature in the account opening card and photograph.

  Nationality Certificate/Passport’s photography (duly attested)

  Parent’s name.

  Date of Birth and Age.

  TIN papers

  Partnership Letter.

  Trade License (valid).

  Partnership deed (from Notary Public).

  Seal/Rubber Stamp.

• Account for Limited Company

  Passport size photograph of account operator (Authorize by parents) – two copies (each).

  Introducer’s signature in the account opening card and photograph.

  Company resolution.

  Common seal of the company.

  Memorandum & Articles of association (certified by Joint Stock Company).

  List of Directors with sign.

  Certificate of incorporation.

  Trade License (valid).

  TIN papers.

• Account for Societies, Clubs, etc.

  Passport size photograph of account operator (Authorize by parents) – two copies (each).

  Introducer’s signature in the account opening card and photograph.

  Nationality certificate of the operators.

  Bye-laws & Regulations/constitution.

  Board Resolution.

  Up-to- date list of office Bearers/Governing Body/Managing Committee.

  Memorandum & Articles of association (certified by Joint Stock Company).

  Seal/Rubber Stamp

Deposit Schemes (Local Currency)

  Savings Account

  FDR Account

  STD Account

Savings Account

Any Bangladeshi National residing home or abroad may open savings account with UBL. This account may be opened in single/joint name. The account holder may nominate his nominee in this account. The nominee can get the balance amount without submitting succession certificate after the death of account holder. This account bears usual rate of interest. UBL offers 1% above the normal rate of interest on credit balance of TK.2.00 lac and above kept in the savings account for more than 6 month.

 Requirement for opening of the A/C

  Account opening form as per format below. The Account opening form and signature card to be filled in and duly signed.

  Two copies passport size photographs of the account holder.

  Photograph of nominee (if any) duly attested by the account holder.

  Photocopy of the 1^st 7 pages of the passport for non-resident Bangladeshi national.

  Signature in the account opening form/card must be same with the signature of the passport.

 FDR Account

Any Bangladeshi national residing home or abroad may open FDR with UBL. FDR may be opened single/joint name for a period of 3, 6, 12, 24 and 36 months. UBL offers attractive/competitive rate of interest in FDR.

Renewal of FDR

The FDR becomes automatically renewed for like periods and amounts, unless this are withdrawn by the depositor or the bank notifies the depositor in writhing at least 15 days in advance of the original or any renewed maturity date of its desire to terminate the account or cheque any term and condition of the account.

  Short-Term Deposit (STD) Account

In UBL, limited companies, corporate groups, various other big companies, organizations, Govt. Departments keep money in STD accounts. Frequent withdrawal is discouraged and requires 7 (Seven) days prior notice. STD account opening procedure is similar to that of the saving account. Initial account opening minimum amount requirement TK. 1000/-

In Short Term Deposit Account, the deposit should be kept for at least 7 (seven) days to get interest. The interest offer for STD is less then that of savings deposit. 6% interest is paid on their deposit. The bank is benefited because they have to pay less interest and the customers are also benefited because they any time can divert money.

In UBL, usually customers give an instruction to the bank that their current account will be debited whenever its deposited amount crosses a certain limit and this amount will be transferred to the STD account.

 Issuing cheque book to the customer

Procedure of issuance of a fresh cheque book

  A customer who opened a new account initially deposits minimum required money in the account.

  The account opening form is sent for issuance of a cheque book.

  Respected officer first draws a cheque book.

  Officer then sealed it with branch name.

  In-charge officer enters the number of the cheque book in Cherub Book Register.

  Officer also entry the customer’s name and the account number in the same Register.

  Account number is then writing down on the face of the cheque book and on every page of the cheque book including Requisition slip.

  The officer who has the signing authority signs on every page of the cheque book and the next requisition slip exists in the chequebook.

  The name of the customer is also written down on the face of the cheque book and Requisition Slip.

  The word ‘issued on’ along with the date of issuance is written down on the requisition slip.

  Number of cheque book and date of issuance is also written on the application form.

  Next the customer is asked to sign in the cheque book issue register.

  Then the respected officer signs on the face of the requisition slip put his initial in the register and handover the cheque to the customer.

 Issue of new Cheque book (For old Account)

All the procedure for issuing a new cheque book for old account is same as the procedure of new account. Only difference is those accounts have to submit the requisition slip of the old cheque book with date, signature and his/her address. Computer posting is then given to the requisition slip to know the position of account and to know how may leaves still not used. The number of new cheque book is entered on the back of the old requisition slip and is signed by officer.

Transfer of an Account

  The customer submits an application mentioning the name of branch to which he wants the account to be transferred.

  His signature card, advice of new account and all relevant documents are sent to that branch through registered post.

  The balance standing at credit in customer’s account is sent to the other branch through Inter Branch Credit Advice (IBAC).

  Not exchange should be charged on such transfer.

  Attention is also given in this connection.

Closing of an Account

Upon the request of a customer, an account can be closed. After receiving an application from the customer to close an account, some procedures are followed by a banker. The customer should be asked to draw the final cheque for the amount standing to the credit of his account less the amount of closing and other incidental chargers and surrender the unused cheque leaves. The account should be debited for the account closing charges etc. and an authorized officer of the bank should destroy unused cheque leaves. In case of joint account the application for closing the account should be signed by all joint holders.

A banker can also close the account of his customer or stop the account under following considerable circumstances:

Death of the customer.

  Customer’s insanity and insolvency.

 Order of the court.

Cash Section

The cash section with all types of negotiable instruments, cash and other instruments and treated as a sensitive section of the bank. It includes the vault, which is used as the store of case instruments. If the cash stock goes beyond this limit the excess cash is then transferred to Bangladesh Bank. Keys to the room are kept under control of cash officer and branch in charge. The amount of opening cash balance is entered into a register. After whole days transaction the surplus money remains in the cash counter is put back in the vault and known as the closing balance. Money is received and paid in this section.

  Cash Receipt

  At first the depositor fills up the deposit in slip. There are two types of deposits in slip in this branch. One for savings account and another for current account.

  After filling the required deposit in slip depositor deposits the money.

  Officers at the cash counter receives the money, count it enter the amount of money in the scroll register kept at the counter, seal the deposit in slip and sign on it with date.

  Then this slip is passed to another officer who enters the scroll number given by the cash counter in his register along with the amount of the money, sign the slip and keep the bank’s part of the slip. Other part is given to the depositor.

  All deposits of saving account are maintained be one officer and other accounts by another officer.

  At the end of the day entries of both of these registers are cross checked with the register kept at the counter to tee whether the transaction are correct or not.

Cash Payment

  First the client comes to the counter with the cheque and gives it to the officer in charge there. The officer checks whether there are two signatures on the back of the cheque and checks his balances in the computer. After that the officer will give it to the cash in charge.

  Then the cash in charge verifies the signature from the signature card and permits the officer in computer to debit the client’s account by giving posting. A posted seal with teller number is given.

  Then the cheque is given to the teller person and he after checking everything asks the drawer to give another signature on the back of the cheque.

  If the instrument is free of all kind of error the respected officer will ask the bearer to sign on the back of it.

  He will then put his initial beside the bearer’s signature. She/He will also signs it on its face, will write down the amount by red pen and will put on a scroll number from his scroll register.

  Then the cheque will be sent to the cash counter. At the cash counter bearer will be asked again to sign on the back of the instrument.

  The cash officer will then enter the scroll number in his register and will pay the money to the bearer.

  At the end of the day these scroll number of the register will be compared to ensure the correctness of the entries.

 Sorting & Stitching:

 Sorting:

At the end of the day, the amount of cash has to be sorted out in order to identify the different type notes like – 1000, 500, 100, 50, 20, 10, 5, 2, 1 and so on. Hundred pieces of any type of note create a bundle and ten bundles make a ring. In this way cash is actually sorted out.

 Stitching:

After sorting out the cash, bundles are stitched along with a slip bearing the name of the bank, total number of notes and the signature of the Cash-In-Charge. Two round seals are given at the both sides of the bundles.

 Remittance (Local)

Bank is a service oriented industry and deals with public money. They provide services to their clients through different ways. “Transfer of money/fund of one person/customer to another person/firm/organization through the bank is called remittance”. Any person can remit funds to any one within the country through any of the branches of some bank by the following means with nominal charges:

  Pay Order

  Demand Draft

  Telegraphic Transfer

  Mail Transfer

Remittance is Taka currency and in foreign currency from abroad.

Any Bangladesh national residing, working and earning abroad can remit their earnings in Bangladeshi Taka as well as in foreign currency through the banks/Exchange companies having drawing arrangement with Uttara Bank Limited. Such remittances are delivered to the beneficiaries expeditiously through its close/wide network of 207 branches all over the country. It also ensures delivery of remittance to the beneficiary within 24 hours. Any person can take the service of the 600 correspondents of UBL world wide for remitting any foreign currency to his beneficiary in the country.

Payment Order (P.O)

This is an instrument issued by the branch of a bank for enabling the customer/purchaser to pay certain amount of money to the order of a certain person/firm/organization/office within the same clearing house area of the pay order issuing branch.

 Demand Draft (D.D)

The Demand Draft is a written order by one branch of a bank upon another branch of the same bank to pay a certain sum of money to or to the order of a specified person. This is an order instrument in which the issuing branch gives instruction to the payee branch to pay certain amount of money to the order of certain person/firm/organization.

Telegraphic Transfer (T.T)

It is an instruction duly tested sent by telex/telegram/telephone/express mail etc. to the drawer branch for paying a certain sum of money to a specific person. This mode of transfer of fund may be affected at the written request an account holder of the branch and against value received from him. It is preferable to obtain a confirmatory cheque from the customer.

 Mail Transfer (M.T)

In the prescribed format the purchaser/drawer branch instruct the drawer branch to pay a specified sum of money to the payee named in the IBCA preferable by crediting his account.

 Clearing

Where inter-banks receivables and obligations are settled. A particular house/place under the control and supervision the central bank of the country. Where representatives of the member bank/schedule banks/assembles/meets together for settlement of their respective banks receivables and payables. It sits on all working days. In our country clearing house are organized by the Bangladesh Bank at the different big cities. There are two types of clearing:

Inward Clearing

When a particular branch receives instrument which drawn on themselves and sent by other member bank for collection are treated as inward clearing.

 Outward Clearing

When a particular branch receives instrument drawn on the other bank with in clearing zone and those instruments for collection through the clearing arrangement is consider as outward clearing for that particular branch.

 Outward Bills for Collection (OBC)

Customers deposit cheque, draft etc for collection attaching with their deposit receipt. Instrument within the range of clearing are collected through local clearing house but the other which are outside the clearing range are collected through OBC mechanism. A customer of UBL principal branch local office Dhaka is depositing a check of Sonali Bank Cox’s‑Bazar. New as a collecting bank UBL principal branch will perform the following tasks.

  Received seal on deposit slip.

  SJIBL local office principal branch crossing indicating them as collecting bank.

  Endorsement give payees A/C will be credited on realization.

  Entry on register from where a controlling number is given.

Collecting bank can collect it either by its branches of by the drawer’s bank they will forward the bill then to that articulate branch. OBC number will be given on the forwarding letter.

 Inward Bills for Collection (IBC)

In this case bank will work as an agent of the collection bank branch receives a forwarding letter and the bill. Next steps are:

  Entry in the IBC register, IBC number given.

  Endorsement given‑ “our branch endorsement confirmed”.

  The instrument is sent to clearing for collection.

  Miscellaneous creditor A/C.

CHAPTER FIVE

DUTIES AND RESPONSIBILITIES

Internship Position & Duties

Throughout my internee period I have worked with more or less all the CSO (Customer Service Officer) and try to help at my level best to help them in their work. So basically I know more about general banking. The tasks that I have done throughout my internee period are given below:

 Account Opening Section

I have started my internee with responsibility of Customer Service Officer. I was assigned to work with account opening department. In a whole day I have to open more than 5 accounts. Customer account opening is a lengthy process. If the customers have the documents that she/ he is needed to open that particular; he or she must fill an account correctly. If there is any problem found in the fulfillment of the from is wrongly filled, the from will be return on next day. So the form must be filled correctly. If all the things are right, the CSM give the permission to open the account. They have to fill up a KYC (Know Your Customer) from to have more idea about the customer. The main purpose of this from is to give all necessary information regarding the account, like the charges, benefits and if any specific inquiry the customer ideas.

I also open FDR account, DPS, different type of account like-

  Short Notice Deposit Account

  Savings Account

  Current Account

  Short Term Deposit Account

  Other Deposit Scheme Accounts

 Clearing Section

I have worked total more than 10 days in this section. The main responsibilities was received several cheques from their clients. I also attached in the front side of the cheque clearing seal and at the back side endorsement seal. My responsibility to ensure account number, account holder name, which bank’s cheque etc. After confirming this I sent this cheque to my boss. He was responsible for completing the other tasks.

 Provide Information of all type of Customer Query

I also provided information to all type of customer queries. Each day many people come to the branch with various types of problems. I tried my best to give them the proper information and try to solve their problem. Some of the information like account opening requirements, DPS & FDR related information, give instruction for address change, signature change, and mandate instruction, nominee change, and account closing information, DPS closing information, FDR closing formalities, pay order, document issue and all type of queries.

 Verification of Signature in Different Issue

Verification of signature is very important for banking transaction. Because one of the important proves to be an account holder is the signature. It was also a risky issue. I used to verify signature for different issues like for balance inquiry, stop payment instruction, address change, nominee change, signature change, cheque book delivery etc.

 Payment Order Issue

Pay Order is an instrument, which is used to remit money with in a city thorough banking channel the instruments is generally safe as most of them are crossed. I issued more then 5 to 6 pay order in each day.  At first Customer is supplied with PO form. After filling the form the customer pays the money in cash or by cheque. The concerned officer then issues PO on its specific block. This block has three parts, one for bank and other two for the customer. ‘A/C Payee’ crossing is sealed on all Pay Orders issued by the bank with authorized officer’s signature in the block. At the end PO is provided to customer.

 Demand Draft Issue

The Demand Draft is a written order by one branch of a bank upon another branch of the same bank to pay a certain sum of money to or to the order of a specified person. This is an order instrument in which the issuing branch gives instruction to the payee branch to pay certain amount of money to the order of certain person/firm/organization. I issued more then 5 to 6 demand draft in each day. At first Customer is supplied with DD form. After filling the form the customer pays the money in cash. Then I give entry in the DD register book.

Telegraphic Transfer Issue

It is an instruction duly tested sent by telex/telegram/telephone/express mail etc. to the drawer branch for paying a certain sum of money to a specific person. This mode of transfer of fund may be affected at the written request an account holder of the branch and against value received from him. It is preferable to obtain a confirmatory cheque from the customer. I issued more then 5 to 6 telegraphic transfer. At first Customer is supplied with TT form. After filling the form the customer pays the money in cash. Then I give entry in the TT register book.

 Receiving & Sending Letter

I received different types of letter from different organization like other banks which I records in inward book. I also send different types of letter to the different organization which I record in the outward book.

 Learning Points

I have learnt so many things about the banking sector. Now, it is very clear to me how Uttara Bank Limited operates their operation on the ground of general banking in this country. I explain this as follows:

  How to open their several account in their bank.

  What are the requirements for opening their account.

  What are the procedures to close an account.

  How clearing house operates their operation.

  How to provide information to their client.

  How to verify signature in different issue.

  How to renew FDR account.

  How to issue a Pay Order.

  How to issue Demand Draft.

  How to issue/receive Telegraphic Transfer.

  How to issue/receive Mail Transfer.

  Finally, I learned how to prepare an internship report

CHAPTER SIX

SWOT ANALYSIS

SWOT Analysis of UBL, New Market Branch

“SWOT” reveals full meaning of the word as “Strength, Weakness, Opportunities and Threats”.

Strengths

UBL New Market Branch has a number of strengths include:

  Uttara Bank Ltd is well decorated and air conditioned facilities.

  UBL has Money counting machine for making cash transaction easy and prompt.

  In UBL Bank SWIFT is being used for foreign trade related operations like letter of credit, fund transfer, guarantee, etc with optimum security.

  UBL has a well-diversified pool of human resources, which is composed of people with high academic background. They are always devoted themselves to works for better customer service.

  UBL provide ATM debit card and nonstop banking facilities.

  Strong brand image of UBL.

 UBL is always trying to add New and Modern  equipment.

Weaknesses                                                                                                                                        

UBL, New Market Branch has some weaknesses which include:

ü  The bank website is not upgraded.

  The Bank has Limited number of employees.

  UBL has no ATM booth in New Market branch.

  UBL has no SMECenter in New Market branch.

  Sometimes it seemed to me that charges and other fees are very high compared to other private banks. It frequently creates customer dissatisfaction.

  There is an internal Clash among the employee and the depertment.

  Low pay structure than other commercial bank.

 Opportunities

Opportunities of the UBL, New Market branch which include:

  The bank can introduce more innovative modern customer services

  The bank can be opened many branches.

  Regulatory environment favoring private sector development.

  SME business for that particular area.

  Credit card business.

  UBL, New Market Branch can introduce more innovative and modern customer service.

  The bank can expand the financing policy with credit facility.

 Threats

Threats of the UBL, New Market branch which include:

  Through the innovation working  is a continuous process, but the other rival banks are coping it within the short time.

  Common attitude of Bangladeshi clients to default.

  Number of potential competitors in those areas increasing day by day.

  Competitors in those areas can capture market by offering similar products.

  Market pressure for lowering the interest rate.

  Bangladesh bank sometimes forced some rules and regulation which is not sustainable for UBL, New Market Branch.

CHAPTER SEVEN

CONCLUSION AND RECOMANDATION

Conclusion

From the practical implementation of customer dealing procedures during the whole period of my practical orientation in Uttara Bank Ltd, New Market Branch I have reached a firm and concrete a conclusion in a very confident way. Uttara Bank Limited is one of the leading banks in our country. They have already passed forty long years of their banking life. They had to struggle a lot against different economic, climatic, social, political unpleasant environment. So they have a huge experience about total environment of Bangladesh. For this reason they are doing their banking activities comfortably. The UBL is trying to improve the productivity by rendering to its customers in order to remain competitive in the market.

Uttara Bank Limited plays a significant role in various fields in the economy such as industry, trade & commerce, transportation, deposit mobilization etc. They have a great contribution on the agricultural development in our country which is most important for us just now. It is playing a crucial role in human resource development and in creating new employment opportunities. It is also undertaking various welfare activities for the betterment of the society. In this context the bank has established Uttara Bank Foundation. It has managed the employment for a large number of people in our country. It is another great contribution to the country.

Recommendation

Based on my three months observation in the bank, I achieved lot of practical knowledge. During the internship period I faced some problems and based on that I state the following recommendations to the bank:

  They should update their banking software and system that ultimately result in fully automated banking activities to attain customer satisfaction.

  UBL, New Market Branch should have an ATM booth.

  UBL, New Market Branch should have a SME center.

  Number of employees of UBL, New Market Branch should be increased.

  Charges and fees may be reduced for more customer satisfaction.

  Officials whom are involved in Customer Services should be trained properly. Because some time they cannot give proper suggestions to the customer queries. Though they try to give their best.

  UBL should train its new employees from professional institution like Bangladesh Bank, Bangladesh Institution of Bank Management (BIBM) etc.

  Cash department of New Market branch should be more secure.

  There should be a code of conduct for the UBL officials, which should followed.

References

 Jeff Madhura (2006), Bank Management, “Financial Markets & Institutions”, 7^th Edition,                Thomson South Western.

Lesika, Pettit, (2004-2005), Reports Determination of Makeup, “Business Communication”, 6^th Edition, New York, McGraw-Hill.

Mutual Trust Bank Ltd (2008), “Internship Report on General Banking & Accounts Department”, Retrieved as December 01, 2009, from http://www.reportbd.com/categories/Report%2C-Assignment%2C-Case-Study-and–Term-Paper/

Uttara Bank Limited (2009), “History of UBL”, Retrieved as December 05, 2009, from http:// uttarabank-bd.com/

Uttara Bank Limited (2009), “UBL Products”, Retrieved as December 13, 2009, from http:// uttarabank-bd.com/

Uttara Bank Limited (2009), “Annual report” 2007-2008, Uttara Bank Limited, Dhaka, Bangladesh.

Shahjalal Islami Bank Limited, Kawran Bazar Branch (2009), “General Banking Operation of Shahjalal Islami Bank Limited”, 2009, from Library & Information Division (LID), Northern University Bangladesh.