Internship Report on The Banking Activities of UNITED COMMERCIAL BANK LTD

Deposit Account )

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UCB DPS Plus§RFCD ( Resident Foreign Currency

Deposit Account )

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Western Union Money Transfer§Consumer Credit Scheme

§

SMS Banking Service§Locker Service

§

Online Service§Industrial Finance

§

Credit Card§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

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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:

For  1 Month

       3 Month

        6 Mont

12 Months 

12.50

12.50

12.50

12.50

Minimum Tk. 50/-Cancellation Charges of DD/TTTk. 50/- per instanceCharges for issuance of Duplicate InstrumentTk. 100/- per instance15% 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

§   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 both 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:

q     Types of Credit Facilities

(Max) 

Funded1.SOD(FO)Secured Overdraft

100% cash coveredGeneral purpose12 months2.TODTemporary overdraftGeneral Purpose

Forced Loan60 days3.PAD(Sight)Payment   against   Document

(Foreign-sight)Advance        against

Sight  L/C Forced Loan21 days4.PAD(EDF)Payment   against   Document

(EDF)Advance against EDF L/C

Forced Loan21 days5.PAD (A/G/B)Payment  against  documents

(A/G/B)Advance against LC

(A/G/B)-Forced loan21 days6.PAD (Local)Payment   against   document

(Local- sight)Advance against

Sight L/C (Local) – Forced loan21 days7.PC

(RMG & other than

RMG)Packing Credit against Export

L/C & Export OrderTo   finance   against

Export L/C

To   finance   against

Export Order

Pre-shipment Finance120 days8.ECC

(New)Export Cash CreditFinancial

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

Liquidated out of export proceedsLC

validity/180 days 

9. 

BFL 

Bridge Financing Loan 

Support Equity 

12-36 months

No.   Name of the

      Facility           Description     PurposeTenor

       (Max) 

Funded10.TRLTransport LoanTo finance

commercial

Transport36-48 months11.HBL(Com)House    Building    Loan    –

CommercialTo finance

commercial house/

apartment36-96 months12.HBL(Res)House    Building    Loan    –

ResidentialTo finance residential

building / apartment60-120 months13.LTRLoan against Trust ReceiptTo    finance   import

L/C180 days14.HBL(S)House Building Loan – StaffTo finance   personal

house/apartment15 years15.CC(Hypo)Cash         Credit        against

hypothecation  of                         Inventory and Book DebtsTo finance  Inventory

Other Business operations

General purpose12 months16.CC(Pledge)Cash Credit against Pledge of

InventoryTo   finance   pledged

Inventory12 months17.Loan General

(New)Loan GeneralShort term, medium

term loans allowed for specific purpose for definite period and repayable by installments.12-36 months18.FBPDForeign   Bill    Purchased  &

DiscountedTo purchase

/discount/ negotiate export documents against Sight/Usance Export L/CAs    per    LC

Terms19.LBPDLocal    Bill     Purchased   & DiscountedTo purchase /discount against local usance

L/CAs    per    LC Terms

180 days20.LCPS(S)Loan under Personal Loan –

StaffTo finance personal

consumable items36 months

(Max) 

Funded21.CL(S)Car Loan – StaffTo finance personal

Car5 years22.FL(S)Furniture Loan – StaffTo finance personal

Furniture72 months23.LIM

(Rename)Import Loan against Imported

Merchandise pledgedTo  finance  imported

merchandise    under pledge180 days

Seri

al

No.

Name of the

Facility

DescriptionPurposeTenor24.Term LoanTerm Loan against fixed assetsTo finance fixed assetOver 1year max 7 years25.Time LoanTime    Loan    against   Other

Security/Collateral/SupportTo finance business

operations/work order/Industrial working capital

To finance fixed asset To finance duty/tax General purpose12  months26.OAPOwn Acceptance PurchaseAdvance 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 Loan90 days27.OD(General)Overdraft     against      Other

Security CollateralTo  finance  business

operations/Industry

operations

Misc. purpose12 months28.CP(Local)Cheque Purchase (Local)To      purchase/discount

Cheque,   Bank   Draft, and Payment Order30 days

(Max) 

Funded29.CP (Foreign)Cheque Purchase (Foreign)To purchase/discount

foreign currency Cheque, Bank Draft, and Payment Order45 days30.Consumer     Credit

Scheme (CCS)

(New)Consumer  credit  provided  to middle class income groupTo finance purchase of

consumer durable by the fixed income group to raise their standard of living.Over 12 months

Max 60 months31.Hire Purchase

(New)Hire purchaseTo     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 adjustmentOver 12

months Max 60 months32.Lease Financing

(New)Lease financeTo     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 years33.OD (Work Order)

(New)Overdraft against work

orderAdvance             against

assignment of work order/ bill for execution of contractual works

Not a continuous credit rather time loan06 months to

36 months34.OD(EM)

(New)Over Draft for Earnest MoneyTo      pay      earnest

Money90 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:

No.

Name of the

Facility

DescriptionPurposeTenor 

Non –Funded1BFC (Local)Bills for Collection – LocalCollection  of   local

outstation    cheques/ Drafts/DocumentsAs             per

rules/terms2.BFC (Foreign)Bills for Collection – ForeignCollection of  foreign

cheques/ Drafts/DocumentsAs             per

rules/terms3.LG(Local)Letter of Guarantee – LocalFor           contractual obligation (Bid-Bond,

Payment Guarantee, Advance Payment Guarantee,

Performance Guarantee,  Customs Guarantee,   Shipping Guarantee)Specific period4.LG(Foreign)Letter of Guarantee – ForeignFor           contractual

obligation and othersSpecific

period5.SLC(Local)Sight Letter of Credit – LocalFor local

procurement

Recourse on title to local documentAs    per    LC

Terms6.SLC(Foreign)Sight   Letter   of   Credit   –

ForeignFor foreign

procurement under sight L/C

Recourse on title to import documentAs    per    LC

Terms7.SLC(EDF)Sight Letter of Credit – EDFFor          importation

under sight EDF L/C

Recourse  on  title  to import documentAs    per    LC

Terms8.SLC (A/G/B)Sight  Letter  of  Credit  (Aid/

Grant/ Barter)For Importation

under (A/G/B)As    per    LC

Terms

Non –Funded9.ULC(Normal)Usance Letter of CreditFor          importation

under usance L/C

Recourse on sales12 months

(Max)10.ULC(BB)Usance Letter of Credit – Back

to BackFor importation under

back  to back usance

LC

Recourse on exportAs    per    LC

Terms11.Acceptance

(Normal)Acceptance  against   Usance

Letter of CreditTo finance assets thru

banker’s acceptance

Recourse on salesAs    per    LC

Terms12.Acceptance

(Back to Back)Acceptance  against  Back  to

back usance Letter of CreditTo finance assets thru

banker’s acceptance

Recourse on exportAs    per    LC

Terms13.Fwd FXForward ContractCover  exchange  risk

against    Letter    of

Credit

Performance Risk180 days

  Process of work flow

Credit Approval Process   

Credit approval process starts with receiving prescribed completed credit application from the customer and ends with issuance of a written “Sanction Advice” by the Bank. Credit approval process in the bank shall be guided by some basic principles. These are as follows:

q Credit Proposal

A Credit Proposal is prepared by the Relationship Management Team either at Branch or Corporate Division based at Head Office to present a concise and objective assessment of the risks associated with lending money to the prospective borrowers. Banks have to ensure before sanction/disbursement that their portfolio is of high quality, i.e., the risks associated with the portfolio are relatively low. A credit proposal may be defined as here under:

1. Initial Credit Proposal – Initiate credit facilities for any new relationship for the bank.

2. Annual Credit Proposal – Renew existing facilities extended to a borrower or amendments to existing facilities at the Annual Review Date.

3.   Interim Credit Proposal – Propose amendments (for e.g., an increase in amount or tenor or pricing, or a change in security structure), and/or new facilities for an existing borrower at any time other that the Annual Review Date.

Any credit proposal as mentioned above and/or Pre-sanction Inspection Report/Call Report/Visit Report must be originated by the Relationship Officer duly recommended by Relationship Manager of Branch or Relationship Officer of Corporate Division of Head Office duly recommended by Head of Corporate. If a proposal is originated by Head Office Corporate Division, the transaction would be suitably booked to a branch as proposed by the customer.

q   Identification Number

Each borrower would have a unique Loan Identification Number. The Branch originating a Credit Proposal shall assign this number after getting written acceptance of the borrower in the Facility Offer Letter that forwarded to the borrower after receipt of the approval from the competent authority of the Bank. The identification number will consist of three parts: three digit  Branch Code,  four  digit  Unique  Serial Number  and  four  digit  Year  in which the customer begins credit relationship with our bank. In fine, the identification number format will be as follows: Branch Code-Unique Serial Number-Year. There would be two digit loan category number assigned by Head Office also.

q   Time Frame for Decision

Any requirement for further information regarding a particular credit proposal shall have to be communicated in writing to the customer within 5(five) days from the date of submission of the credit application. And, any decision of declining a credit application other than retail credit shall have to be communicated to the customer by the Relationship Team within 15 (Fifteen) days from the date of receiving all information from the customer. On the other hand, Head Office Credit Risk Management Division will inform the primary status of the proposal after scrutiny of the proposal within 3(three) days from the date of submission of the scrutinized credit proposal by the Corporate Banking Division other than Industrial Credit.

q     Reporting Approvals

Credit Executives having credit approval authority at Branch level should report on monthly basis a summarized position of all credit facilities sanctioned by him/her during the month in the prescribed form. This is to be submitted to the Head of Credit and Head of Corporate within the first week of the following month.

q   Review of Approval

The Head of Credit Risk Management Division will review at least 10% of total approval of an individual executive on monthly basis in respect of compliance with the Credit Risk Management Policy, internal circulars, prevailing regulations etc and report the findings to the Managing Director.

q   Revision of Credit Decision

Any credit proposal declined by Credit Risk Management Division may be placed before next higher authority for reassessment/review if Corporate Banking Division feels that the exceptions are justifiable, or can be rectified over a reasonable period of time. But no appeal will go beyond the Managing Director.

q   Compliance to Regulation

Any credit approval/sanction shall be subject to the compliance of Bank’s Credit Policy as well as banking regulations in force or to be imposed by the regulatory body from time to time and to the changes in the Bank’s policy. This is to be specifically mentioned in the Sanction Advice issued to the customer.

q   Credit Committee

Bank has a multi-tier Credit approving system to manage the credit risk efficiently. Credit proposals after preliminary evaluation and making necessary adjustment will be placed by Corporate Banking Division before the Credit Committee for preliminary appraisal since recommendation of the Credit Committee is pre-requisite before approving any loans by the appropriate approval authority. Credit Risk Review Department of CRMD will conduct their risk assessment on different aspects of the proposal and may place their observation in the Credit Committee meeting. Additional Managing Director/Deputy Managing Director will be

the Chairman of the committee and the committee is to be constituted by the Managing Director. TOR of the Credit Committee will be framed time to time and to be approved by Managing Director.

There will be Branch Credit Committee to review the Credit proposal which fall under the delegated power of Branch incumbent. No proposal will be approved unless it is screened and recommended by the Branch Credit Committee. The Branch Credit Committee will be constituted within the framework as advised by the Credit Risk Management Division duly approved by the Managing Director. Branch will inform Credit Risk Management Division about the formation of the committee and any changes due to transfer and others time to time.

q   Steps in credit Approval Process

Step-1: A potential borrower collects prescribed Credit Application Form from the Relationship Officer of Branch/Corporate Division, Head Office/Web address of the Bank. Later, he/she submits the filled in Credit Application Form along with required papers and documents.

Step-2:  The  Relationship  Officer  scrutinizes  the  Credit  Application  Form  and  other documents  submitted  by  the  customer  and  make  a  preliminary  assessment  on creditworthiness of the potential borrower on the basis of the information provided by the borrower. Relationship Officer collects further information from the customer if it is felt necessary. And, if Relationship Officer finds the proposal not credit worthy, a refusal letter to the customer would be sent immediately. On the other hand, if Relationship Officer finds the proposal acceptable within the parameter as set by the Credit Policy and instructions issued time to time by Credit Department, Relationship Officer will forward the application with his comments to the concerned Relationship Manager.

Step-3: The Relationship Manager, singly or jointly with Relationship Officer, visit the customer’s business premise and try to acquire proper understanding about the business position, business expertise and reputation of the borrower, purpose of credit, actual credit requirement, sources of repayment,  etc. Besides, he/she negotiates with the customer about the structure of the proposed credit facility to control the risks.  Apart from this, he/she assesses the value of the security to be offered and prepares Valuation Report. Finally, the Relationship Manager summarizes all these information in the Pre-sanction Inspection  

Report/Call  Report/Visit  Report   in   the   Bank’s  prescribed   format   in   which   he/she recommends for specific credit facility for the customer. At the same time, The Relationship Officer, who is the primary bank contact with the borrowers collects duly filled in “CIB Inquiry Form” from the customer and send the same to the Credit Administration Department of Head Office to collect latest CIB Report from Credit Information Bureau of Bangladesh Bank.

Step-4: The Relationship Manager sends the Pre-sanction Inspection Report to the Corporate Division, Head Office. The Head of Corporate Division or assigned Executive assesses the credit proposal and may contact with the concerned Relationship Manager or directly to the customer for any query. Finally, Corporate Division of Head Office communicates their decision to the Relationship Manager.

Step-5: Credit Administration Department on receipt of the request letter from the Branch will send the “CIB Inquiry Form” to Bangladesh Bank. Credit Administration Department will send the CIB report immediately by facsimile/e-mail/courier service to the concerned Relationship Officer on receipt of the report. Everything may be closed if adverse CIB report is received. In that case, letter of regrets would be issued to the customer informing the reason accordingly.

Step-6: If, clean CIB Report is received, the Relationship Officer originates a formal Credit Proposal in prescribed format that should carry the recommendations of the Relationship Manager. After signing by him, it is to be sent to the Corporate Banking Division, Head Office  and  a  copy to  the  Credit  Risk  Review  Department  of Credit  Risk  Management Division. It is to be mentioned here that for renewal proposal, a certification of Credit Administration  officer  is  required  stating  the  documentation  status  following  existing sanction advice.

Step-7: Corporate Banking Division, Head Office after modifying the proposal as required place the proposal along with Head of Corporate Banking Division’s recommendation before the Credit Committee. Head of Credit Risk Review Department of CRMD or his authorized representative may report his observation in writing/verbally before the Credit Committee. Corporate Banking Division should inform the list of proposals that are to  be  placed before

the Credit Committee at least 15(fifteen) hours before to the Credit Risk Review Department of CRMD for smooth functioning of the committee except the exception cases.

Step-8: Credit Committee will analyze the proposal and if found viable recommend for approval to the appropriate approval authority following discretionary power provided in delegation of credit approval authority with their observations. If the proposal is endorsed by the Credit Committee, Corporate Banking Division will prepare required Memo mitigating the weakness/risk factors and incorporating the suggestion/observation of the Credit Risk Review Department as well as Credit Committee for approval of the appropriate authority. The modified Memo should be routed through Credit Risk Management Division for further scrutiny. On receipt of the Memo, Head of Credit Risk Review Department will distribute to the respective Credit Officer to review, scrutinize and analyze in line with the business plan, risk acceptance criteria of the bank and general credit norms. Credit Officer after evaluating the credit information, facility structure and risk factors summarize his observations with reasons and forward for concurrence of Head of Credit. The Head of Credit may contact with the Head of Corporate Banking Division for clarification/rectification on any issues if required. Credit Risk Management Division may include covenants & conditions to control the acceptable risk and verify the status of the observations of Credit Committee as well as Credit Risk Management Division. If the final Memo is acceptable, risk is within tolerance level and facility structure commensurate with the total facility, it will be recommended by Credit Risk Management Division for approval. The appropriate approving authorities may approve the proposal if within their respective delegated approval authority or decline the proposal  or  may  ask  for  further  review.  If  the  proposal  exceeds  Managing  Director’s delegated authority, he/she recommends it to the Executive Committee of the Board of Directors or to the full Board of Directors.

Step-9: If the facility is approved by the appropriate approval authority, Corporate Banking Division will send the copy of approval Memo/Note sheet to Credit Risk Management Division. On receipt of approval, Credit Risk Review Department of CRM issues Sanction Advice to the originating Branch along with a Documentation Check List preferably on the same date which clearly spells out what is the documentation formalities required to be completed before disbursement. Copy of the Sanction Advice is to be sent to Corporate Banking Division and Credit Administration Department.

Step-10: Sanction Letter to the customer following Credit Risk Review Department of CRM sanction advice to be issued under dual signatures from the originating Branch. Preferably, Relationship Manager and Credit Administration Officer of the Branch should sign on the Sanction Letter.

q   Disbursement Process

Disbursement of a loan sanctioned by the competent authority shall be made after receipt of written clearance obtained from Credit Administration Department of Head Office. The disbursement process will be guided by some basic principles. These are:

§    Separation of Authority

Relationship Department and Disbursement Authority shall be separate from each other to minimize the risk. Relationship Department will market the products along with preparation of credit proposal while Credit Administration Department will deal with disbursement of approved  credit  facilities  after  completing  all  formalities  as  mentioned  in  the  Sanction Advice.

§    Documentation Check List

While issuing Sanction Advice to the Corporate Division/Branch, the Credit Division will enclose therewith a Documentation Check List in which documentation formalities will be specified that to be completed by the Credit Administration Unit of the disbursing branch before any disbursement to secure the credit facility.

Documentation is obtaining such agreement where all the terms and condition and securities are written and signed by the borrower. It specifies rights and liabilities of both the banker and the borrower. In documentation each type of advances requires a different set of documents. It also differs with the nature of securities. The documents should be stamped according to the stamp Act. There are no hard and fast rules of documentation and it varies from bank to bank. Generally, the documents are taken in the case of a secured advance by

UCB:

§    Demand promissory note: Here the borrower promises to pay the loan as and when demand by bank to repay the loan.

§    Letter of arrangement.

§    Letter of continuity.

§     Letter of hypothecation of goods and capital machinery.

§    Stock report: This report is used for OD and CC. In this report, information about the quality and quantity of goods hypothecated is furnished.

§    Memorandum of deposit of title deed of property duly signed by the owners of the property with resolution of Board of Directors of the company owning the landed.

§    Personal guarantee of the owners of the property.

§    Guarantee of all the directors of the company.

§    Resolution of the board of directors to borrow fund to execute documents and completes other formalities

§    Form no. XVII/XIX for filling charges with the register of joint stock companies under relevant section.

§    Letter of Revival

§    Letter of lien for advance against FDR.

§    Signing Documentation Check List

Relationship Officer is responsible for getting the document signed by the customer and completing other formalities as per checklist. After completion of documentation formalities as per checklist, the Branch will submit the same to the Credit Risk Administration Department, Head Office, duly signed by the Relationship Manager (Head of the Branch) and countersigned by the Credit Administration officer at the Branch seeking Disbursement Authority (In case of credit facilities approved by Branch incumbent within delegated approval authority from Managing Director, copy of signed Documentation Check List is to be sent to CAD, Head Office for information). It is the responsibility of the Credit Administration  Officer  to  verify  the  proper  execution  of  documents/security/collaterals before countersigning. However, both the signing officer will be equally accountable for any lapses in documentation.

§ Deferral of Documentation

No credit facility is to be released for utilization, if requisite documentation is not available or proper   deferral  approvals   have   not   been  obtained.  If  there   is   any   inadequacy  in documentation as per sanction advice, the Relationship Manager shall have to seek temporary

deferral/waiver stating the reasons and specific time frame. Request of deferral will only be processed in cases of extreme need, i.e., all reasonable attempts have been made to complete the documentation prior to disbursements and have failed only because of unusual circumstances. Such temporary deferral/waiver shall be approved by the Head of Credit Risk Management   Division/Additional   Managing   Director   and/or   the   Managing   Director depending on the issues. However whole responsibility for removal of the inadequacy within the stipulated time shall rest with concerned Relationship Officer/Manager and respective Credit Risk Administration Unit are responsible for monitoring deferrals.

§ Disbursement Authority

All the approved credit facilities except the facilities approved under delegated authority of Branch incumbent shall be disbursed only after having written disbursement authority/clearance from the Credit Administration Department, Head Office. If there is any inadequacy in documentation, the CAD Officer at Branch level will specifically mention it in the Documentation Check List / Certificate of Documentation and concern Relationship Manager/ Branch Manager will mention reason behind the inadequacy and asked for temporary deferral with specific time frame along with reasons behind for deferral. If the request is approved by the authority as mentioned in the preceding paragraph, Credit Risk Administration Department will intimate the deferral of documentation for specific time as approved  and  will  issue  disbursement  authority  to  the  Relationship  Manager/  Branch Manager. However, Branch will not disburse any facility without proper documentation and if necessary, should obtain deferral approval from CAD, Head Office.

§Facilities Approved by the Head of Branch

Loan against financial obligation or others under the approval authority of Branch incumbent, if authorized by Managing Director, may be disbursed after completion of documentation formalities and signing of the Documentation Check List by the Head of the Branch and countersigning by the CAD Officer of the Branch. Limit will be input in the system by the CAD officer independently to control the accounts.

§    Valuation

Valuation of assets charged to the Bank is a crucial function, as it has a direct bearing on the amount of loss that the Bank might have to suffer in the event that the Borrower’s default. The method of valuation employed, has to be appropriate to the nature of the assets.

All valuations must be supported with factual data, in order to qualify the collateral for credit value;  valuator’s  estimates  without  supporting  documents  are  not  acceptable.  Valuation should be conducted by an enlisted Valuator of Bank’s choice. Where the exposure is not large, joint valuation by Relationship Manager and another officer of the bank may be accepted since it will not be cost effective. Apart from Valuators valuation independent valuation by Relationship Manager and another Officer should also be carried out.

§   Legal Vetting

Mortgage documents should be properly vetted by the Bank’s Legal Counsel. He/she will also certify that proper documentation, borrower’s legal standing and enforcement of securities are in place. Finally, Lawyer’s Satisfaction Certificate shall have to be obtained regarding documentation where there are securities/collaterals other than Personal Guarantee and Financial Obligation.

§  File Maintenance

Maintenance of credit files is an important part of the credit process and is required to determine whether or not credit extensions are based on adequate and complete information. Credit files contain records of analysis and business strategy information submitted to the Bank by the clients. Adequate system is required to be in place to restrict access to this confidential information to only those personnel who are authorized to use it and maintain it.

Each borrowing client should have separate and independent file(s) and shall be maintained under the custody of the concerned Relationship Officer of Branch and Credit Officer o f Credit Department, Corporate Banking Division and Recovery Unit (Where applicable) of Head Office. Credit Administration Department will also maintain independent files for each borrower where copy of Sanction Advice, acceptance of the borrower, signed Documentation Checklist, Disbursement Authorization Memo, Deferral letter and other  papers related  with CAD will be maintained. It is the responsibility of the concerned officer for proper filing of

  §    Sub Standard

The papers to ensure that required information is easily locatable and maintained in good order. An officer who does not handle the file will have to take written permission from the higher authority to have access to it.

q   Steps in Documentation Process

Step-1: The Relationship Officer of Branch is responsible for getting the document signed by the customer and completes the formalities of mortgage with the help of bank’s legal counsel. The CAD Officer stationed in Branch will scrutinizes and reviews each document and mortgage papers independently as mentioned in the Sanction Advice. After completion of documentation formalities, the concerned Relationship Manager signs the duly filled in Documentation Check List/Certificate of Documentation sent by Credit Department of Head Office. CAD Officer countersigns the Documentation Check List/Certificate of Documentation if found in order and sends it to the Head of Credit Administration seeking disbursement authority and loading the facility in the system.

Step-2: All legal and banking documentation will be kept with utmost security in fire proof safe (vault) separately from the credit file under dual custody. Documentation Check List should be maintained in Credit File as well as in the Jacket of documents. Dual custodian and their alternates are to be nominated by the Credit Administration Department.  Safe in /Safe out register of documents is to be maintained by Relationship Manager.

Step-3: If Credit Administration Department, Head Office found the Documentation Check List having no discrepancy, Disbursement authority will be given to the concerned Relationship Manager/ Branch Manager and CAD officer would load the limit in the system/database and limit is made available to the customer for drawing.

q   Credit Monitoring Process

Credit monitoring and review is very important, because it ensures proper utilities and repayment of Bank fund. Credit monitoring and review feature of UCBL is concerned was assessing the quality of different type of loan. In classifying the loan and advance there are four classes in the loan review practiced in United Commercial Bank Limited. They are as follows:

§    Unclassified

The loan account is performing satisfactorily in the terms of its installments and no overdue is occurred. This type of loan and advances are fall into this class.

This classification contains where irregularities have been occurred but such irregularities are temporarily in nature. To fall in this class the loan and advance has to fulfill the following

factor.

SubstandardS-T Agri & Micro Credit3  months  &  above  but   less  than  6

months.Continuous loan Demand LoanUn-recovered for 3 months & above but

less than 6 months from the date of the

loan is claimed. 

Fixed Term loanRepayable within 5years: If the overdue

installment equals or exceeds the amount repayable within 6 months.Repayable  more  than  5years:  If  the

overdue  installment  equals  or  exceeds

the amount repayable within 12 months.

The  main  criterion  for  a  substandard  advance  is  that  despite  these  technicalities  or irregularities no loss is expected to be arise for the bank. These accounts will require close supervision by management to ensure that the situation does not deteriorate further.

§ Doubtful

This classification contains where doubt exists on the full recovery of the loan and advance along with a loss is anticipated but cannot be quantifiable at this stage. Moreover if the state of the loan accounts fall under the following criterion can be declared as doubtful loan and advance.

DoubtfulS-T Agri & Micro Credit6  months  &  above  but  less  than  12

months.Continuous loan Demand LoanUn-recovered for 6 months & above but

less than 12 months from the date of the loan is claimed. 

Fixed Term loanRepayable within 5years: If the overdue

installment equals or exceeds the amount

repayable within 12 months.Repayable   more   than   5years:   If   the

overdue installment equals or exceeds the amount repayable within 18 months.

A particular loan and advance fall in this class when it seems that this loan and advance is not collectable or worthless even after all the security has been exhausted. In the following table the criteria to be fulfilled to fall in this category are summarized:

Bad and Loss

S-T Agri & Micro CreditNot   recovered   within    more    than   12

months.Continuous loan Demand LoanUn-recovered more than 12 months from

the date of the loan is claimed. 

Fixed Term loanRepayable within 5years: If the overdue

installment equals or exceeds the amount

repayable within 18 months.Repayable   more   than   5years:   If   the

overdue installment equals or exceeds the

amount repayable within 24 months.

FOREIGN REMITTANCE

Foreign Remittance means purchase and sale of freely convertible foreign currencies as admissible under Exchange Control Regulation of the country.

The transaction of the authorized dealer in foreign exchange involves either outward or inward remittances of foreign exchange from one country to another. As an authorized dealer the Local Office Branch of UCBL provides its customer foreign remittance by FBC, LEBC, sale, and purchase of FTT, FDD, travel’s cheque, FBP.

The Bank provides the foreign remittance facilities to the student studying aboard. Bank also provides foreign exchange in the shape of traveler’s cheques to the intending visitors.

§    Foreign Inward Remittance

The remittance which is received from abroad are called foreign inward remittance.

§    Foreign Outward Remittance

Remittance which is made from our country to abroad is called foreign outward remittance.

q     Foreign Bills Collection

Foreign bills for collection refer to collection procedure of foreign DD/PO/Cheques as per arrangement between UCBL and its corresponding Banks. The collection procedure is as follows:

§    Entries in the FBC register and get a FBC number. This number will be on the bill and be treated as reference no.

§    Forward the bill along with a forwarding letter to the corresponding Bank. Send the draft through courier service and keep a courier receipt in the file.

§    Crossing on the bill indicating UCBL as a collecting Bank. Endorsement on the back of the bill “Payee’s A/C will be credited on realization”.

§    Prepare a liability voucher.

§    A photocopy of the bill to be kept on the file.

q     Traveler’s Cheque

Traveler’s cheques are issued by Banks to avoid the risk of loss or inconvenience in having to carry large amount of cash while traveling. The salient features of traveler’s cheque are:

§   The buyer of the traveler’s cheque no need to be a customer of UCBL

§   The buyer has to deposit money with the branch of UCBL equivalent to the amount of T.C he wants to buy.

§   Each T.C has signed by the buyer at place marked ‘’when countersigned below with this signature”, before the UCBL officer.

§   T.C. is issued in single name. It’s not issued in joint names or names of clubs, societies and companies.

§   There is no expiry period for the T.C.

q     Types of Foreign Currency Account

Foreign currency account is a product where an account holder can keep his money in any specified foreign currencies and convert them into Taka as required. Bangladeshi nationals residing abroad, foreign nationals residing abroad or in Bangladesh, foreign firms registered abroad and operating in Bangladesh or abroad, and foreign missions and their expatriate employees in Bangladesh can open Foreign Currency (FC) accounts.

q     Non-resident Foreign Currency Deposit A/C (NFCD)

q     Resident Foreign Currency Deposit A/C (RFCD)

q     Foreign Currency A/C Opening Procedure

§    Pursuant to section 21 of the PFA 1989, foreign-currency Bank accounts may only be operated under the terms of a Direction for Foreign-Currency Departmental Bank Accounts or a Notice of Delegation Regarding Crown Bank Accounts issued by the Treasury.

§    The department must apply in writing to their Treasury Vote Team to open a foreign- currency Bank account. The application should include:

• ·      whether a Crown or departmental account is required;
•  
• ·      the business justification for the Bank account;
•  
• ·      the currency and required exposure limit;
•  
• ·      the Bank and location at which the account is to be opened;
•  
• ·      the credit rating of the Bank;
•  
• ·      whether the account is to be interest-bearing; and
•  
• ·      the names or job titles of the authorized signatories.
•  

§   The Vote Team will consider the application in terms of the business justification and Treasury’s minimum credit criteria. They will advise BMB whether or not they are in support of the department’s application.

§    If the Vote Team is in support of the application, BMB will process the request and issue a Direction or Delegation to the department to operate the Bank account. In the event that the Vote Team declines the application e.g. where the Bank does not meet Treasury’s credit criteria and there is an alternative Bank available which does, the department will require joint ministerial approval should they wish to proceed with their application.

§    Once a Bank account has been approved by Treasury and the appropriate Direction or Delegation issued, the department will need to update their list of approved counterparties in their Foreign-Exchange Policy Document.

§    Any proposed changes to a department’s Banking arrangements must also be approved by their Treasury Vote Team. The application must be made in writing and state:

·      What the required change is;

·      The reason for the change, including any supporting documentation; and

·      Where the request is to close a Bank account, confirmation that the account has been reconciled to a zero balance and that no transactions are outstanding.

q   Practice of Computer Based Management Information System(MIS)

Background:

        In United Commercial Bank Ltd. The practice of Computer based Information System is of medium level in respect of today’s global environment. Before 1996 the bank used to maintain ledger for keeping its record and information. At that period  MIS was mostly paper based , most of the banking transaction recording activities had to do manually. At 1996 the bank has equipped all of its branches, departments, with modern technology such as Network Computer, Telex, Fax, SWIFT & e-mail e.t.c to operate in the global environment. For the first few months the bankers of UCBL had to maintain ledger and computer side by side. But after proper training  and practice the bank is operating its major banking activities only with the help of computers as well as information technology now a days. The bank has also launched a web Page of its own to take a place in the World Wide Web.

Computer Based Information System:

       Each of the branch of UCBL is using computer based information system (CBIS) in the same way, using the same type of Local Area Network at branch level as well using the same database for data collection, Processing, Storing and disseminating information to support decision making, coordination, control, and visualization in the branch as well as in the whole banking system.

Computer Networking in the bank:  

In UCBL every branch is using a local area network of a combination of Peer-to-Peer architecture & Star Topology. When all the workstation are using the database-Pc Bank/m they are in the network of Star topology. Here the CPU of the server is the host CPU and when it stops functioning or it is disconnected from the network other workstations in the network can not enter in the Pc Bank/m. At that time other workstations are in the network of Peer-to-Peer architecture. It is distributed network through which all the work station can exchange data by direct access and can share peripheral device such as printer, without going through separate server.

         Only the workstation of VP & EVP are allowed to use Internet being connected

through a dial-up-network. While these work stations use Internet they are disconnected from the internal network and are connected with the dial-up-network of Internet for security of the workstations as well as the server.

        However, of all workstation, one is the server with Unix operating system and the other workstations are installed with Windows 98.The application software for the central database is installed at server and other workstations with different passwords. The Server maintains the ultimate security of the database through out the whole network.

Database for banking Transactions:

 At every branch a central database is maintained for collecting, storing, processing, retrieving banking transaction. This central database is maintained by using an application software named “Pc Bank/m developed by Leads Corporation Limited Bangladesh. This application software has two main modules as below.

  a) Client side

  b) Ledger side

These modules have the following option as below:

 Client Side:                              Ledger side:

-System Information                 -General ledger

-Online                                      -Bills and register

-Transaction Input                     -Backup and Restore

-Update                                      -Day Start Process

-Report                                       -Any branch log-on

-Statement                                  -OS utility

-Period Process

         Using the client side bank can inform any account holder about their account balances, periodic transaction for a certain period, statement of account. Clients also can be informed about their deposit using this side. Bank can take decision about money transfer from one a/c to another or withdrawal of money from an a/c using client side bank also use this side day’s supplement can be retrieved and daily banking transactions are updated.

         Using ledger side information about party’s liability, D.D,T.T,P.O, new branch entry & transaction can posted and  retrieved and banking transaction are stored in magnetic tape.

         Data related to daily bank transaction are posted to Pc Bank/m daily from Remittance, Cash & Deposit, Credit & Advance and Foreign Exchange section maintaining different password which are being updated at server that is protected in a separate room.       

The security of the database is maintained with the help of security service given by the application software and the server, using the network

Thus  the bank’s dally transactions are recorded through Pc bank/m and daily balance can be shown throw three heads of database as below:

  1)Cash difference

  2)       Clearing difference

  3)       Transfer difference   

When each of the head mentioned above show no debit- credit difference separately. Then Pc Bank is updated at server and recorded through various magnetic tape and heard copy for branch and for reporting the head office.

   For recording checks regarding clearing house all branches of UCBL use. The NIKAS22 software developed by Bangladesh Bank Computer Department. Thus

Through NIKAS22 branches can know their amount in clearing house, can make daily clearing statement which is the validity sheet regarding clearing house, clients can be informed about their check amount in clearing house, check bounces.

E- Banking:

         Actually no e-banking service is given by UCBL at present. The Small amount of e-banking it is conducting is of information exchange in nature. Any Account holder of the branch, or any customer sent T.T, F.D.D, who is residing outside the country can ask and know about his T.T, F.D.D, account balance through e-mail with branch. Any query between head office and a branch can be asked and answered through e-mail. 

q  Other automation of UCBL:

 The Bank has brought 17 of it’s A.D branches under SWIFT network. The SWIFT service helped in speeding up international transaction related to international NOSTRO account operations and L/C related activities.

q  Performance Of The Bank after using Computer Based Information System (CBIS):

 In UCBL all the banking activities were paper based before1996. Employees had to do all the information related works manually which was time consuming. Clients Parties of the bank had to wait for a long time for getting a banking service such as knowing accounting balance, Periodic transactions etc. After starting of CBIS the bank is now able to do many banking activities within a few minutes. Client service in the bank became many more faster, precise and accurate than past. At present the bank is rendering service to many more client than past with fewer employee than past. But they are now able to do it within fewer times than before. Moreover now bank closing activities are now of short time period. All these became possible because of the use of CBIS.

The Green Banking Policy of United Commercial Bank Limited has already been formulated by the ‘Green banking Cell’ and the Board of Directors approved it. In line with the Policy, adequate funds will be allocated in the next budget of the Bank for related activities.

As per the guideline of Bangladesh Bank, a separate policy has been formulated as Environmental Risk Management (ERM) Policy, aligned with Credit Risk Management Policy. The Board of Directors also approved the ERM Policy. Besides, Formulation of a draft ‘Green Office Guide’ for the purpose of development of In-house Environment Management is at the final stage

In the meantime, the following activities and programs have been undertaken in compliance with Green Banking Guidelines of Bangladesh Bank:

1. Variable Refrigerant Flow (VRF) system Air Cooler, lessening around 25% electricity consumption, has been installed at Bank’s Corporate Head Office.
2. Since the inception of 2011, the Bank has started installing energy efficient bulbs in the newly established Branches.
3. As an initial initiative of establishing environment friendly Branches, the Bank has introduced solar energy system at Noapara Branch, Chittagong and other Branches will be equipped with the same system phase by phase.
4. Different divisions of the Bank are disseminating operational guidelines, circulars and Management decisions as well as collecting statements through email reducing use of paper.
5. The Data Center built inside the Corporate Head Office at Gulshan uses In-Row Precision Air-Cooling System which ensures minimum power consumption to maintain necessary temperature for the Data Centre Equipments.
6. Number of Application and Database Servers has been consolidated in high capacity Servers which has reduced power consumption.
7. Managed Rack based Structured Network has been implemented at Data Center. As such required space and dissipated heat is much less compared to traditional Data Centre.
8. Central UPS (Uninterrupted Power Supply) installed at each floor which reduces total backup power requirement.
9. Separate Network Switch room at each floor reduces unnecessary cable laying in the Data Center.
10. CRT (Cathode Ray Tube) Monitor has been replaced by LCD (Liquid Cristal Display) Monitor in all work stations in Head Office which reduces dissipated heat and power requirement for the computer system.
11. UCB is the pioneer in introduction of Bangladesh Electronic Fund Transfer Network (BEFTN) transaction system which reduces dependency on paper-based transaction.
12. Sixty numbers of ATM Booths have been installed which reduce operation time and consumption of cheque book.
13. Bank’s all printers are with double sided printing facility and enabled with ‘Eco-font’.
14. HR Management software has been installed for generation of salary advice which is reducing manual paperwork.
15. In-house CIB software has been installed which is allowing Branches to input data as and when required hence complimenting paperless work flow.
16. In-house MIS software installed for capturing operational data, centralized processing and KPI which has reduced use of paper and saving time and work hour.

The Bank has been giving emphasis on financing eco-friendly business activities and energy efficient industries like Effluent Treatment Plant. The Bank has recently financed Term Loan of Tk.16.85 Crore to establish two brick fields using Hybrid Hoffman Kiln (HHK) technology.

UCB is already providing online banking services to its valued clients through 115 branches. Our valued clients are also using SMS Banking services offered by the Bank.

UCB is on the verge of selecting a robust Core Banking Software (CBS) covering all banking operations including delivery channels as well as Offshore Banking and Islami Banking. With the implementation of CBS, UCB will be equipped to offer more paperless and eco friendly banking services.

To automate work flow, increase operational efficiency and to reduce carbon emission, UCB has also taken the following measures and projects which are underway for implementation of corporate objectives on green banking:

1. Implementation of Enterprise Resource Planning (ERP) software for Office Automation
2. Implementation of Corporate Intranet Portal
3. Implementation of a new Green Disaster Recovery Site (DRS)

UCBL exerts utmost effort to implement Green Banking and always eager to embrace latest technology any methods to ensure eco-friendly banking operation.

q   Daily Statement of Affairs of the Branch

The account section maintains the daily and statement of affairs of the branch. Every day the all the vouchers with the supplements are sent to the Principal Branch. The branch has products where it can earn and various expenditures.

Voucher system is used for every transaction. Voucher has to be prepared either in cash or in transfer or in clearing, t he Sheet upon which these vouchers are summarized transactions-

wise and consolidated into a figure is called supplementary.

§

§

Debit Supplementary

Credit Supplementary

Debit supplementary is used for debit voucher and credit supplementary is used for credit voucher books and registered maintained by bank are as follows:

§    General ledger

§    Statement of daily affairs.

§    Cash book or Cash cum day book.

§    Transfer book

§    Income and expenditure ledger, etc.

§    Income Includes

§    Interest income

§    Handling charges

§    Service Charges

§    Commission (from ut ilit y services)

§    Expenditures Includes

§    Salaries, allowances and provident fund

§    Rent, taxes, insurance, lighting etc.

§    Profit paid on deposits and borrowings

§    Postage, telegram and stamps

§    Stationary, pr int ing and advertisement charges etc.

§    Auditor’s fee and legal charges.

q  SWOT ANALYSIS

Not surprisingly, in the competitive arena of marketing era SWOT analysis is a must based on Product, Price, Place and Promotion of a financial institution like private bank. SWOT analysis helps the bank reconstruct different sorts of shortcomings of the bank. From the SWOT analysis we can figure out ongoing scenario of the bank. So to have a better view of the present banking practices of UCBL, I did the SWOT analysis.

In SWOT analysis two factors act as prime movers:

Þ    Internal factors, which are prevailing inside the concern, which include strength and weakness.

Þ    On the other hand another factor is external factor, which act as opportunity and threat.

StrengthUsage of faster pc bank softwareEfficient administration.Cooperation with each otherLack of default loan.Membership with SWIFTGood banker-customer relationshipStrong financial positionEnergetic as well as smart work force.Strong position in CAMEL rating.

WeaknessReluctance to advertisement campaign.Lots of inexpert and laggard Assistant Officers.Existing manual vouchers.Lack of availability  of ATM  service   

OpportunityHuge business area

 Introducing any branch banking through onlineGrowth of sales volumeChange in political environment

     ThreatsDifferent new services of FCB’S (Phone Banking/Home Banking)Different classic services of Foreign Banks.Existing card services of Standard Chartered Girdles BankDaily basis interest on deposit offered by HSBCEntrance of new PCB’s

q   Findings:

The success of a bank depends on improved service delivery to its customers .now so many bank in the country need  has emerged to cater to the need of customers but most of the bank in Bangladesh is using conventional banking system. UCBL Kanchan branch is not exception to this trends.  Though customer are satisfy there not highly satisfy with there services. All kinds of transaction are occurred here. But they have to face different kinds of problems in this Branch, Like in General Division, Advance Division, Foreign Exchange Division all of three division finding some problems are as below :

• Delay in transaction and over the counter for this reason the customer very finds that there is long queue in the counter. The reason of such queues due to the lack of initiative of the concern officers.
• Absence of modern technology so works delay and it does not compete with other Bank.

• Discourteous Behavior by staff and officers very often it is found that customer and a member including branch manager on some occasion are found in heated discussion.
• Lack of Team work is a major problem in general section. It is one of the most important criteria for development of customer service in this branch.
• In Advance Division they face the various problems to recovery the loan installment. The loan installment does not realize in the proper time for that reason this branch may be assign as a problem bank.
• IBP (Inland Bill Purchase) is a risky business it is one of the main business in this branch. There are many IBP party in this branch but there not big party. IBP limit is very small so many times then face some problem. For that reason advance is not increase. Big L/C amount and the bank Purchase the big amount.
• In Kanchan Branch marketing system is very poor to sell their products like-Loan. There are very few schemes are offered by UCB consumer loan is one of them but now it is close.
• Sometimes the valuation of properties are does not calculate properly for that      reason customer is sufferer. It does not offer various loan projects than other Bank.
• In Foreign Exchange Division there main problems is lack of manpower for that reason the employee does not complete the job in time.
• In the Foreign Exchange document systems are not moderns so employee wastes their time for looking document for in time.
• Decisions are centralized. 
• Broad Band line is suitable instead of on line care systems. Lack of on line banking the work is slow.
• In general banking system they follow the traditional banking system. The entire general banking procedure is not fully computerized.
• Lack of verity of services is also a drawback of the general banking area of the United Commercial  Bank. The bank provided only some traditional limited services to its clients. As a result the bank is falling behind in competition.
• They are not using Data Base Networking in IT department. So they have to transfer data form branch to branch and branch to Head Office by using floppy disk and it is not a good system.
• According to some clients, opinion introducer is one of the problems to open an account. If a person who is new of the city wants to open account, it is a problem) or him/her to arrange an introducer of SB or CD accounts holder.
• The loans and advance department takes a long time to process a loan because the process of sanctioning loan is done manually..
• Bankers face enormous problem to fill up loan related paper like parties loan application, stock report, Net worth valuation report etc.
• CIB inquiry form does not provide information about new client of the bank.
• CIB report is not readily available from Bangladesh Bank.
• Political influence is one of the major problems in Bangladesh. Due to political intervention, the bank becomes obliged to provide loans in most of the cases, which are rarely recovered. Bank has to face this in convenience situation almost every year
• Modern technical equipment such as computer is not sufficient in each branch’s . As a result, the process makes delay and it is also complicated.
• In foreign exchange department it is required to communicate with foreign banks frequently and quickly. To make the process easy modem communication media for example e-mil, Fax and win fax, Internet etc. Should be used. But the bank doesn’t have mass use of this medium of communication.                                                                                                                                                                                            
• In some cases the number of employee engaged in rendering specific services is insufficient.
• Employees are exposed to customer excessively which is an obstacle in systematic and prompt service.
• The location of this branch is main constraint to give its customer proper and full service. There is no easy way to go to the branch. People who want service from this branch don’t feel interest because of  location.

 q    RECOMMENDATION

It is quite d ifficu lt to give suggestion to improve t he banking conditions of UCBL. As we know that nothing is perfect, there is always a room for improvement, so I have found during my internship can be made up taking into account the following suggestions.

§    Offers more facilities to the customers such as Debit card, ATM booth etc.

§    General working conditions ought to be improved

§    Should has own photocopy machine.

§    Should increase the number of computers as well printers with proper UPS facility.

§    PcBANK2000 database software has no option for preparing Bank statement. It needs to be upgraded in order to remove this kind of problem.

§    To speed up the Foreign Exchange works, database software should be introduced for this department.

§    The branch still works very manually; to accelerate the whole branch it should be automated.

    The Bank should as soon as possible install highly automated banking software like Flex cube     to add value to its service. This will not only allow faster service but also reduce the work load.

         §     The bank should employ an outside company for recovery of its dues because it takes a great amount of time for the bank’s employees to recover stuck up loans.

        §  The bank can increase its retail credit loan by allowing credit to more customers. This can be possible through relaxation of credit norms like waiver of guarantee from third parties.

        §    The bank can attract more lease finance customer through reduction of cost of borrowing on  the part of the customer. This can be made possible through return of a fraction of the lease deposit taken by the bank at the time of sanction and disbursement. Similarly the bank can return the risk fund realized from retail credit customers in case of timely and smooth adjustment of the loan by the customers. This will provoke customers to repay the loan timely.

• In addition, with the present services they should include more services.

It is badly needed to provide more services to the customer in order to

compete in the market.                                                                                                      

• As the clients are not in favor of introducer system that currently

present, if possible the rule of introducing to open an account should

be changed. Because many people face in problem to arrange an

introducer in the time of opening accounts.

• In advance section to recovery loan and the delay problems. Special monitoring cell should work in the field level.
• The loan sanction process should be easier that the clients can feel convenient to take loan from the bank.
• The valuation of the property should be calculated by the surveyors.
• The Software in General Banking as well as foreign exchange should be upgraded.
• Manpower should be increase in foreign exchange section
• Foreign exchange department should be fully computerized that the

exchange process would be convenient for both the bankers and the

clients.

• For selling their products this branch need strong marketing to sell their products.
• Regular Performance Appraisal and assuring promotion/reward depending upon that will resist the employees switching tendency.
• Internal conflict among the employees should be mitigate
• While the whole world is depending on information there is no clear information for customer in Kanchan Branch. So, management should take proper step for it.
• There is no library for improving the quality and efficiency of its employee in the bank.
• The operation manual of the bank is backdated. It should be replaced by a new and finally manual.
• Customer services must be dynamic and prompt. Without prompt service, Bank cannot keep its current account base and that’s why branch should increase quality service.
• To attract new customers and to retain it self in the banking market, the banking market, the bank should be innovative and diversified its product services.
• The Bank should develop credit card system because it has been observed that in near future all the payments will be consisted of only credit card plastic money.
• Ad is the key factor for a business organization to up hold it in the market and for making market share and goodwill in future. That’s why management should give priority on it.
• General ledger posting and customer service must should be together.
• At the same time For.Ex, Gen a/c Ledger should be computerized instead of manual posting.
• ATM service  should be provided for fast services.
• For selling their products this branch need strong marketing to sell their products.
• Consumer loan should be continuing.                                                          
• If the IBP (Inland Bill Purchase) party open the big L/C amount then bank also purchase the big amount in this situation advance will be increase and the bank does not face any problem. 
• For.Ex documents should be modern instead of Manual.
• Decision should be decentralized. Manager should be considering the opinion of the subordinate.
• Manpower should be increase in foreign exchange section.
• All of work should be computerized instead of manual posting because of better services.

RECOMMENDATION

It is quite d ifficu lt to give suggestion to improve t he banking conditions of UCBL. As we know that nothing is perfect, there is always a room for improvement, so I have found during my internship can be made up taking into account the following suggestions.

§    Offers more facilities to the customers such as Debit card, ATM booth etc.

§    General working conditions ought to be improved

§    Should has own photocopy machine.

§    Should increase the number of computers as well printers with proper UPS facility.

§    PcBANK2000 database software has no option for preparing Bank statement. It needs to be upgraded in order to remove this kind of problem.

§    To speed up the Foreign Exchange works, database software should be introduced for this department.

§    The branch still works very manually; to accelerate the whole branch it should be automated.

       The Bank should as soon as possible install highly automated banking software like Flex cube     to add value to its service. This will not only allow faster service but also reduce the wok load.

         §     The bank should employ an outside company for recovery of its dues because it takes a great amount of time for the bank’s employees to recover stuck up loans.

        §  The bank can increase its retail credit loan by allowing credit to more customers. This can be possible through relaxation of credit norms like waiver of guarantee from third parties.

        §    The bank can attract more lease finance customer through reduction of cost of borrowing on  the part of the customer. This can be made possible through return of a fraction of the lease deposit taken by the bank at the time of sanction and disbursement. Similarly the bank can return the risk fund realized from retail credit customers in case of timely and smooth adjustment of the loan by the customers. This will provoke customers to repay the loan timely.

• In addition, with the present services they should include more services. It is badly needed to provide more services to the customer in order to compete in the market.                                                                                                       

• As the clients are not in favor of introducer system that currently present, if possible the rule of introducing to open an account should be changed. Because many people face in problem to arrange an introducer in the time of opening accounts.

• In advance section to recovery loan and the delay problems. Special monitoring cell should work in the field level.
• The loan sanction process should be easier that the clients can feel convenient to take loan from the bank.
• The valuation of the property should be calculated by the surveyors.
• The Software in General Banking as well as foreign exchange should be upgraded.

• Manpower should be increase in foreign exchange section
• Foreign exchange department should be fully computerized that the

exchange process would be convenient for both the bankers and the clients.

• For selling their products this branch need strong marketing to sell their products.
• Regular Performance Appraisal and assuring promotion/reward depending upon that will resist the employees switching tendency.
• Internal conflict among the employees should be mitigate
• While the whole world is depending on information there is no clear information for customer in Kanchan Branch. So, management should take proper step for it.
• There is no library for improving the quality and efficiency of its employee in the bank.
• The operation manual of the bank is backdated. It should be replaced by a new and finally manual.
• Customer services must be dynamic and prompt. Without prompt service, Bank cannot keep its current account base and that’s why branch should increase quality service.
• To attract new customers and to retain it self in the banking market, the banking market, the bank should be innovative and diversified its product services.
• The Bank should develop credit card system because it has been observed that in near future all the payments will be consisted of only credit card plastic money.
• Ad is the key factor for a business organization to up hold it in the market and for making market share and goodwill in future. That’s why management should give priority on it.
• General ledger posting and customer service must should be together.
• At the same time For.Ex, Gen a/c Ledger should be computerized instead of manual posting.
• ATM service  should be provided for fast services.
• For selling their products this branch need strong marketing to sell their products.
• Consumer loan should be continuing.                                                          
• If the IBP (Inland Bill Purchase) party open the big L/C amount then bank also purchase the big amount in this situation advance will be increase and the bank does not face any problem. 
• For.Ex documents should be modern instead of Manual.
• Decision should be decentralized. Manager should be considering the opinion of the subordinate.
• Manpower should be increase in foreign exchange section.
• All of work should be computerized instead of manual posting because of better services. 

CONCLUSION

So in conclusion it can be said that every organization has its positive as well as negatives and in case of UCBL, the later one is less than the earlier one and as the management is determine to reach the pick of success it seems that in near future the negative will be eliminated. Already the bank launch on line banking and credit card system for the customer who demand are demand for that. UCBL also initiate the SMS banking so that the customer can easily know his or her balance of account.    To cope with modern banking requirements the bank is going to introduce ATM booth in some important places of all district in Bangladesh

United Commercial Bank Limited is providing and maintaining pleasant working environment for delivery of better quality services to maintain edge over the competitors. At the same time it has been also found that United Commercial Bank Limited is participating in the growth of our national economy with high quality, information technology driven innovative services to its clients by its own dedicated team of professionals.