Report on United Commercial Bank

Executive Summary:

Banks are the most regulated financial institution of Bangladesh. As our country is going to upgrade its commercial operation day by day, bank plays an important role of commercial operation as well as to increase the economy of our country. As a student of Business administration it is our most essential part to know the rules and regulation and the activities of commercial bank. The United Commercial Bank is one of the largest private sector commercial bank of our country. It has been passed 25 years of its banking activities. Some times it faced crisis but the management knows how to face the crisis moment and how to steps forward. ‘United we achieved’ is the key word of this bank, through this line we can understand the unity is the power of the bank. The management works dedicatedly for the customer and the unity of the employee reaches the bank almost top position among the other banks. There are a lot of branches around the country. A lot of remittance work, FDR issued, Savings accounts opens held all the day. So to realize the activities of the bank in our country it is very helpful for me to work with United Commercial Bank. Customers open the savings account at a low interest for only security. This is also an initiative to create people’s savings tendency. Generally current deposit account opens for business purpose. Customers can withdraw money once or more against their deposit. No interest can be paid to the customers in this account. Fixed Deposit or FDR is opened to increase bank’s liquidity as well as people can increase the value of their money. UCB has paid a huge interest on FDR. It is one kind of time deposit. The money cannot be withdrawn until a specified maturity date. Bank uses clearing process every day to collect its cheque from other banks and to send the cheques of other banks which it receives. To transfer money from one account to other accounts in other branches online banking is very popular. On the other hand when the online process is not available then LBC process is suitable. The OBC process is another type of clearing cheque, when the clearing process is not possible then OBC is being done. Most of the time when a large amount of money will need to collect from other branch on another bank which is located in other town then OBC Procedure required LBC or Local Bill for Collection is the process to collect money from the same bank but another branch. It is almost the same process. Some times the well known customer used TT to transfer the money from one branch to another or to pay the money to other person in other place. TT must occur when the place will be different. UCB has stepped into the electronic banking age. Now, anyone can deposit and withdraw cash, get mini statement, check balance and even transfer money within your accounts and pay installments from any of the branches with online facility.

Origin of the report:

The internship program is the inherent part of the Business Administration program. To complete my B.B.A Course I’ve to do the interne, so when I did get the opportunity to work with United Commercial Bank, it was my pleasure to work with this bank. I worked in the Dhanmondi Branch in accounts and remittance sector. So I’ve got the chance to observe about the general banking activities and basically as a student of finance I am personally interested to know about these activities. United Commercial Bank is one of the oldest private sector banks in our country. It has passed its silver jubilee successfully and now works in variety sector of banking activities.

Objective of the Study: 

General Banking includes the daily working activities of a commercial bank. Like other financial institution bank gives loan to its credit worthy customer

Try to make deposit and do other financial activities. But it is the top most regulatory institution of the country. I do work with The United Commercial Bank Ltd, Dhanmondi Branch. This is the new branch so every department likes foreign exchange; audit, etc do not exist here. So I could only observe the remittance, clearing, accounts and cash department, and that will be the part of my report.

To fulfill the requirement of this course is also my objective. But primary objective is to know about the bank.

Source of Information:

I have worked with The United Commercial Bank Ltd, Dhanmondi Branch from May to August. Within these months I was able to gather the information from bank manager Mr. Ahaduzzaman and other bank officers. I’ve collected personal interview from them about general banking activities as well as about the rules and regulation of government. I have done some work practically and these help me a lot to increase my knowledge about general banking system.

 Another source of information is Local Area Networking System. I’ve visited the web site of United Commercial Bank Ltd. and collect information from them. I’ve gone through the financial books and try to collect information from them.

Scope of the Report:

In this report I try to cover the history of Private and Government bank, the rules and regulation of banking act in Bangladesh. I would try to express the general banking activities of Bangladesh in content with The United Commercial Bank Ltd.  The objective of private bank especially UCB, its working policy, as well as its others activities besides its prime goal are my major concern of this report. Here I’ve focused the accounts opening policy, the system of loan and advances as well as the remittance inland of United Commercial Bank Ltd. I have focused about the organizational structure, the product of UCB. Here the financing system of United Commercial Bank is also given. All these matters are briefly described here.

Limitations:

• Limited coverage because of shortage of time.

• The survey was conducted only on Dhanmondi Branch. If there was a chance to go other branches of UCBL then the result would have been more accurate.

• There are lots of other factors like but the researcher could not include them in the study because duration of the report writing.

• At times the respondents felt annoyed to give time on this survey.

• The knowledge constraint of the researcher

Literature Review:

SAVINGS ACCOUNTS OVERVIEW:

When saving your money, you will be placing money in many different types of savings instruments, including very safe and stable investments vehicles.  This is especially true for money that you are going to need in the short-term (as compared to long-term investments, such as buying a house).  This category includes bank savings accounts and money market mutual funds, some of the safest short term investments.

When placing your money with a bank or money market fund, you earn interest, or yield, which fluctuates, depending on general rates of interest.

TYPES OF SAVINGS ACCOUNTS:

Bank Savings Accounts:

When you are beginning to save, you should place your money in investments that are as safe as possible.  In addition, you will likely always have at least some of your money in short-term investments.  Bank savings accounts are such an investment.  The federal government backs these accounts with what is known as Federal Deposit insurance Corporation (FDIC) Insurance.

Money Market Account:

These are accounts offered by banks.  However, in these accounts the bank typically pays you a higher rate of interest than a savings account.

CD or Certificate of Deposit:

The bank holds your money for a set period of time. Usually one to six months, or one to five years.  Unlike a normal savings account, you may not withdraw your money at any time.  If you do, you will be subject to withdrawal fees.

Money Market Funds:

Similar to bank savings accounts are money market funds.  Money market accounts are available from mutual fund companies.  They are similar, but you usually get a better return with money market funds.  Also, since these funds are not held with a bank, they are not FDIC insured.  However, they are invested in very short-term bonds, which tend to be less risky than longer-term bonds and invest in safe government investments, corporate commercial paper, and other related investments.  In addition, they are regulated by the Securities and Exchange Commission.  That money market mutual fund that invests exclusively in government securities have very little risk, while giving you better rates of return then typical bank savings accounts.

COMPOUND INTEREST

Concept:  Understand what compound interest is, how it is calculated, and appreciate the impact it makes on loans and investments.

Compound interest is a way of life in our society. Understanding how it works and how it can be used effectively to grow your investments is a critical lesson. Investing early and accumulating compound interest over the long term is an excellent and safe way to make your money work for you.

Objectives:

• Know and use compound interest terminology
• Understand when interest is paid
• Understand when interest is earned
• Know and use the formula for calculating simple interest
• Know and use the formula for calculating the total amount of a loan or total value of an investment at the end of a specified term
• Understand how to algebraically manipulate the interest formulas to solve for different variables

SIMPLE INTEREST:

Concept:  Understand what simple interest is and how it is calculated.

Objectives:

1. Know and use simple interest terminology
2. Understand when interest is paid
3. Understand when interest is earned
4. Know and use the formula for calculating simple interest
5. Know and use the formula for calculating the total amount of a loan or total value of an investment at the end of a specified term
6. Understand how to algebraically manipulate the interest formulas to solve for different variables

Lesson Activity:

1. Discuss personal wealth
   1. Ask for examples of ways it is accumulated
   2. Discuss maximizing interest as a prime way to build wealth
2. Review Simple Interest
   1. Use the FV concept to create the formula:
   2. Work through examples
3. Review Compound Interest
   1. Use Formula:
   2. Work through same example as Simple Interest but with compounding interest
4. Compare the two methods
   1. Discuss impact over time
   2. Calculate the difference in return rate
5. Discuss compounding frequency
   1. Work through examples above with different compounding periods

Discuss the relationship between the compound interest formula and the PV formula
Inverses and interchangeable terms
ANNUITIES AND PERPETUITIES

Concept:  Understand the concept of annuities and perpetuities.

An annuity is simply a series of equal payments or receipts made on a regular basis over a period of time. These can be payments or investments each year, each quarter, or each month. We are surrounded by annuities in our daily lives. For instance, the monthly mortgage payments on our house, quarterly payments to our child’s college trust fund, and periodic loan payments are all examples of annuities.

Objectives:

• Understand and define the concept of Annuities
• Understand and define the concept of Perpetuities
• Discuss the use of the future value (FV) formula
• Know how to calculate returns on Annuities and Perpetuities
• Learn how to value Annuities and Perpetuities
• BANKING SECTOR IN BANGLADESH:

  The Jews in Jerusalem introduced a kind of banking in the form of money lending before the birth of Christ. The word ‘Bank’ was probably derived lending business sitting on long benches.
  First modern banking was introduced in 1668 in Stockholm as ‘Svingss Pis Bank’ which opened up a new era of banking activities throughout the European Mainland.
  In the South Asian region, early banking system was introduced by the Afghan traders popularly known as Kabuliwallas. Muslim businessmen from Kabul, Afghanistan came to India and started money lending business in exchange of interest sometime in 1312 A.D. They were known as ‘Kabuliwallas’.

  Number and Types of Banks:

  The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs).

  Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 12 foreign banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (Cooperative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen bank are functioning in the financial sector. The number of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent (2,412) are located in the urban areas and 60.05 per cent (3,626) in the rural areas. Of the branches NCBs hold 3,616, private commercial banks 1,214, foreign banks 31 and specialized banks 1,177.

  Bangladesh Bank (BB) regulates and supervises the activities of all banks. The BB is now carrying out a reform program to ensure quality services by the banks.

  Banking Act of Bangladesh:

  A new Banking Company Act was introduced in 1991 in Bangladesh in order to strengthen the regulation and monitoring system. Since 1994, Bangladesh has also introduced the CAMEL framework in its banking system.

  In order to strengthen credit discipline and bring classification gradually into line with international standards, a new policy was introduced on 3 March 2005. Prudential guidelines for consumer and small enterprise financing were issued. In order to improve credit risk management, the central bank reduced the single borrower exposure limit from 50 per cent to 35 per cent of total capital, subject to the condition that the maximum fund-based credit facilities did not exceed 15 per cent of its total capital. The cash reserve requirement was fixed at 4 per cent in July 2004.

  In order to strengthen credit discipline and bringing classification gradually into line with the international standards, credit, demand and term loans that remain overdue for 90 days or more are put under the “special mention account”.

  BANGLADESH BANK:

  Bangladesh Bank (BB) has been working as the central bank since the country’s independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. BB is also Bangladesh Bank (BB) has been working as the central bank since the country’s independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. BB is also responsible for planning the government’s monetary policy and implementing it thereby.

  The BB has a governing body comprising of nine members with the Governor as its chief. Apart from the head office in Dhaka, it has nine more branches, of which two in Dhaka and one each in Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Rangpur and Barisal.

  In Bangladesh today there are 49 banks, with 6,318 branches, comprising 30 private banks, 4 state-owned commercial banks, 10 joint-venture commercial banks and 5 specialized banks. In addition, there are 30 registered merchant (investment) banks) under the regulation of the Securities and Exchange Commission, which invest in stocks on behalf of customers. Fund management companies that provide brokerage services have also been established recently. In 2005, the share of nationalized commercial banks, private commercial banks and joint-venture banks in total assets of the financial institutions was 40.14 per cent, 42.63 per cent and 9.46 per cent, respectively. Thus, the share of commercial banks in total financial assets stood at 92.23 per cent in 2005. In terms of deposits, the share of nationalized commercial banks reached 39.78 per cent in 2005. The total assets of commercial banks increased by 9.8 times during 1990-2005, from Tk 254.4 billion to Tk 2,487.7 billion. Similarly, deposits and loans, and advances of commercial banks increased 7.2 and 6.4 times during the same period, from Tk 233.5 billion and Tk 226.6 billion to Tk 1,690 billion and Tk 1,444.7 billion, respectively.

  About United Commercial Bank Ltd:

  Sponsored by some dynamic and reputed entrepreneurs and eminent industrialists of the country and also participated by the Government, UCB started its operation in mid 1983 and has since been able to establish one of the largest networks of 84 branches as on 31.12.2006 among the first generation banks in the private sector.

  With its firm commitment to the economic development of the country, the Bank has already made a distinct mark in the realm of Private Sector Banking through personalized service, innovative practices, dynamic approach and efficient Management. The Bank, aiming to play a leading role in the economic activities of the country, is firmly engaged in the development of trade, commerce and industry thorough a creative credit policy.

  Management:

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

  BOARD OF DIRECTORS:

  Chairman

  Mr.Md. Jahangir Alam Khan

  Vice-Chairperson

  Mrs. Qamrun Nahar

  Executive Committee of the Board

  Chairman, EC

  Hajee M. A. Kalam

  Directors

  Hajee Yunus Ahmed
  Mr. M. A. Sabur
  Mr. M. A. Hashem
  Mr. Shabbir Ahmed
  Mr. Kazi Enamul Hoque
  Mr. Showkat Aziz Russell
  Mr. Riyadh Zafar Chowdhury
  Mr. Nur Uddin Javed
  Mrs. Aziza Karim
  Mrs. Setara Begum

  Managing Director

  Mr. M. Shahjahan Bhuiyan

  Secretary

  Mr. Mirza Mahmud Rafiqur Rahman

  Audit Committee

  Chairman

  Mr. M. A. Sabur

  Member

  Mrs. Qamrun Nahar
  Mr. Kazi Enamul Hoque

  SENIOR MANAGEMENT

  Deputy Managing Director

  Mr. A.K.M. Kamal Uddin
  Mr. M.S. Kamaluddin

  Executive Vice President

  Mr. Md. Ruhul Amin
  Mr. K.M. Sirajul Hoque
  Mr. Md. Tariqul Azam
  Mr. Md. Shahed Jalal Chowdhury
  Mr. Mirza Mahmud Rafiqur Rahman
  Mr. Nawed Iqbal
  Mr. Md. Nurul Alam
  Mr. Md. Shah Alam

  Senior Vice President:

  Mr. Md. Quamrul Hassan

  Mr. Ali Haider
  Mr. Nurul Alam
  Mr. Md. Shawkat Jamil
  Mr. Golam Awlia
  Mr. Md. Belal Hussain
  Mr. Chandan Sen Gupta
  Mr. Md. Yunus

  Registered Office:

  Federation Bhaban ( 4th through 6th floor )
  60, Motijheel Commercial Area
  Dhaka-1000, Bangladesh
  G.P.O Box: 2653

  PABX: +88-02-9555075-77, 9568690-93

  Fax: +88-02-9560587

  E-Mail: info@ucbl.com

  Web site: www.ucbl.com

  S.W.I.F.T: UCBLBDDH

  Chairman’s Office

  59, Motijheel Commercial Area
  Dhaka-1000, Bangladesh

  E-Mail: chairman@ucbl.co

1. PRODUCTS & SERVICES:

1. Western Union Money Transfer

1. SMS Banking Service

Online Service
Credit Card

One Stop Service

Time Deposit Scheme

Monthly Savings Scheme

Deposit Insurance Scheme

Inward & Outward Remittances

Travelers Cheques

Import Finance

Export Finance

Working Capital Finance

Loan Syndication

Underwriting and Bridge Financing

Trade Finance

Industrial Finance

Foreign Currency Deposit A/C

NFCD ( Non Resident Foreign Currency Deposit Account )

RFCD ( Resident Foreign Currency Deposit Account )

Consumer Credit Scheme

Locker Service

SERVICES (Accounts, FDR, PDS, Deposit Scheme)     :

Current Account :
Generally this sort of account opens for business purpose. Customers can withdraw money once or more against their deposit. No interest can be paid to the customers in this account. If the amount of deposit is below taka 1,000 on an average the bank has authority to cut taka 50 from each account as incidental charge after every six months. Against this account loan facility can be ensured. Usually one can open this account with taka 500. One can open this sort of account through cash or check/bill. All the banks follow almost the same rules for opening current account.

Savings Bank Account :
Usually customers open this sort of account at a low interest for only security. This is also an initiative to create people’s savings tendency. Generally, this account is to be opened at taka 100. Interest is to be paid in June and December after every six months. If money is withdrawn twice a week or more than taka 10,000 is withdrawn (if 25% more compared to total deposit) then interest is not paid. This account guarantees loan. Almost all the banks follow the same rules in the field of savings account, except foreign banks for varying deposit. The UCB bank gives around six percent interest.

Fixed Deposit Rate:

Fixed Deposit or FDR is opened to increase bank’s liquidity as well as people can increase the value of their money. UCB has paid a huge interest on FDR. It is one kind of time deposit. The money cannot be withdrawn until a specified maturity date. Depositors must leave their fund in the bank until a specified maturity or they will normally forgo a portion of their interest as a penalty.

 1 Year up to 10 lac………………………………………………………13%

 1 Year above 10 lac………………………………………………… 13.25%

 6 Month up to 10 lac……………………………………………………12%

 6 Month above 10 lac………………………………………………….12.5%

 3 Month up to 10 lac…………………………………………………11.25%

 3 Month above 10 lac ………………………………………………………………11.5%

Accounts Opening:

Account opening is the huge process of the bank. A bank officer must verified his/her customer and then decide to open the bank account. The good will of bank is depending on the prospective and valuable customer. To open a bank account several documents are needed.

For Personal Account:

• 2 copies of Account holders recent photographs.
• 1 copy nominees photograph.
• Photocopies of account holders Passport or Driving license or National ID card, or Word commissioners certificate.
• Account holders signature should be cleaned and specified.
• All the information of the account form should be fulfilled and correct.

For companies (Limited or private):

Along with account holders and nominees photographs several documents are needed:

• TIN certificate (if any).
• Memorandum of association.
• Memorandum of article.
• Board of directors’ signature.
• Trade license.
• Total number of board of directors should be mentioned and how many of them should operate the account also be mentioned.
• Previous years balance sheet.
• If the company is a partnership company then the agreement of partnership act should be submitted.

OBC/LBC:

OBC or Outward Bill for Collection is the important part of general banking. Most of the time when a large amount of money will need to collect from other branch on another bank which is located in other town then OBC Procedure required. In this case bank would send an advice to that branch with the amount which should be collected. If the bank has no branch in that place then it would send the advice directly to that bank. When the money will be collected then the bank cut the commission, postage and Vat from party’s account and these are the income of the bank. This process is required when the clearing process of the bank in that place is not applicable.

LBC or Local Bill for Collection is the process to collect money from the same bank but another branch. It is almost the same process. Here because the bank is same so the commission, postage is not charged from party’s account. LBC must occur when the branch is in the same district.

TT or Telegraphic Transfer:

Some times the well known customer used TT to transfer the money from one branch to another or to pay the money to other person in other place. TT must occur when the place will be different. At first the customer will tell the bank officer to collect or transfer money from other bank account, in this case that particular customer must possess a bank account on that branch. Then the officer gives the test number of that branch and would send an advice. After receiving confirmation from that branch bank collect money from that place.

TRANSFER:

Transfer is not a critical sector in banking but it is very important. Transfers play a vital role in banking sector. So now we have to know what transfer is: basically transfer is a type of register maintaining matter. In this register officer write down every day transactions in Debit and Credit side then the officer calculate both the side of the register if both side shown same amount, it means that the total day’s transaction is completely okay.

 Clearing, Clearing House Process, types, Clearing Cheque

CLEARING:

Clearing is one of the magical parts of banking. I really enjoyed this part of the accounts department and banking sector. In United Commercial Bank Limited in Dhanmondi Branch clearing in charges Mrs. Nusrat Zahan (Officer), I did work with her.

The Clearing House:

In Bangladesh Bank, there is a very large room, which contains fifty (50) or more tables for each bank that is called the clearing house.

Nature of clearing house: 

1st Clearing House
Return Clearing House

Clearing House Process:

Every bank has an officer of clearinghouse who is work with Bangladesh Bank clearing house. Actually most of major client deposit their account in different kinds of bank cheques. Clearing officer check all the cheques and deposit slip very carefully and then he received the cheque. After that the clearing officer posting all the cheques in computer software which is recognized through Bankgladesh bank computer department. Then clearing officer seal all the cheques in advance date after that the officer endorsement all the cheques and sign all the cheques. All the cheques are posted in the computer by branch wise, then officer print the entire document and staple all the cheques by branch wise this is called schedule of clearing house. It is a very difficult job to staple all the cheques, because some time’s the cheques are huge in quantity, it may be 250 to 400, this is very vital job because every cheque must have to staple very carefully, it means cheque amount and the print sheet amount and cheque branch must have to be same. If the cheques staple in wrong direction, the cheque may be return from another bank, that’s why UCBL not to be able to credited party account.

Then the clearinghouse officer copying the entire document in two floppy disc as per Bangladesh Bank requirement. When the clearing officers enter the clearinghouse, his first job is that the floppy delivered to the Bangladesh Bank computer department.

All of the procedure the clearing in charge goes to the Bangladesh Bank clearing house before 10 am in the morning. The clearing officer check all the bank’s cheque and he put all the cheques in bank wise, like as this another bank’s delivered there cheques in UCBL desk. Then the officers of UCBL have to calculate all the cheques by using calculator machine, Staple pin remover, and then he divided all the cheques as UCBL Branch wise.

Types of Clearing Cheque:

UCBL Dilkusha Branch performs the bill clearing function through Bangladesh Bank. UCBL Dilkusha Branch acts as the agent of all UCBL branches for the clearing house of the Bangladesh Bank. There are two types of cheque which are-

1. Inward clearing cheque
2. Outward clearing cheque.

INWARD CHEQUES:

Inward cheques are those ones drawn the respective branch which have been presented on other banks and will be cleared / honored through the clearing house of Bangladesh Bank. Then the cheque is called inward cheque of UCBL Dilkusha Branch.

Accounting treatment:

• Customer’s A/C Debit.
• UCBL General A/c credit.

OUTWARD CHEQUES:

Outward cheques are those ones drawn on other bank branches which are presented on the concerned branch for collection through clearing house of Bangladesh Bank. These cheques are called outward clearing cheques.

 Same day Clearing:

When the amount of cheque would be above five lac and the branch of the bank which present the cheque be located within one kilometer surrounding of the Motijheel Commercial area then the cheque will be the same day clearing cheque. The sender can collect the money on the same day.

RECOGNIZED BANK’S AS THE MEMBER OF BANGLADESH BANK CLEARING HOUSE WITH THEIR CLEARINGHOUSE CODE:

 Credit Control System of United Commercial Bank Ltd:

The credit risk analysis is a necessity for all financial institutions. Most of the bank is issuing on an average 25 to 30 mortgage loans every month among customers of different target markets. Official sources estimate around 5% of these loans have a chance of resulting bad. As the credit analysis methods of United Commercial Bank are practiced very extensively to evaluate loan applications it is asked: ‘‘How Credit Control analysis is used as a tool for borrower evaluation for UCB, Bangladesh? A number of simple and practical ways in which corporations can use credit analysis to manage risk are explored and the practical strengths and weaknesses of following such approaches are emphasized.

Most of the credit analysis methods are unknown. Therefore with the help of secondary data from the bank and other reports, and insights from bank officials the researcher’s objective is to find answers to the above questions.

Types of Account taken into consideration:

1. Personal Account

2. Proprietorship a/c

3. Partnership a/c

4. Limited company a/c

Notes:

 For Partnership and limited company account, income derived from statement assessment is apportioned to the applicants as per applicant’s share in the business (minimum 10% for private limited companies). For public limited companies, copies dividend warrants/ reflection of dividend in a/c statement is required. In case 100% dividend credit in account is absent; copies of dividend warrants along with account statement is required.

 One inward cheque return (for sufficient fund) will be allowed per month for any bank a/c. Discretion can be used to allow more than one cheque returns by the underwriter having level 2 authority.

 Flexible income assessment method to be used for loans with loan to value ratio (LTV) <= 40% (i.e. for mortgage including Home Credit and equivalent Islamic Home Finance product).

Valuation Process:

Objective Ascertain existence of the property, find out present construction stage and value of

the property as well Parties involved: Customer, Sale Channel, Third party valuation Agency

 Common documents:

– Properly filled out application form

– One year Bank Statement (latest 12 months)

– Always provide the statement of CC/sod/od facility, if applicant has any

– Latest tax clearance certificate

– CIB (for loan BDT>1000k)

– Photo ID of both Applicant & Co-applicant

– Deed of agreement/letter of allotment/Title deed

– All submitted documents to be sighted as “original seen

 SMS Banking:

Terms & Conditions:

The Application form must be filled up & sent directly to United Commercial Bank and not by facsimile. The Bank may require three working days after receiving the Application Form for activation of the service.

The account holder is solely responsible to stop misuse of SMS Banking Services and also to maintain the confidentiality of his/her financial information by ensuring safe holding of the mobile phone/connection assigned to SMS Banking Service provided by United Commercial Bank. If the Mobile Phone/ Connection is lost, stolen or sold to another individual, the account holder shall immediately notify the Bank and cancel the SMS Banking Service. The account holder hereby agrees that United Commercial Bank shall not be responsible for any disruption in SMS Banking Service due to any mechanical failure on the part of United Commercial Bank/Mobile Phone Service Provider.

Registration form should be submitted to the branch, where the account is maintained.

SMS Banking Service shall remain effective until otherwise advised in writing by the account holder

The Bank may revise and/or change any of the Terms & Conditions at any time with notice to you but does not require any consent.

By providing SMS Banking Service United Commercial Bank may collect service charge from the linked account. United Commercial Bank may revise and/or change the service charge at any point of time.

On Line Banking:

UCB has stepped into the electronic banking age. Now, anyone can deposit and withdraw cash, get mini statement, check balance and even transfer money within your accounts and pay installments from any of the branches with online facility. This is just beginning of our any branch banking under which other branches will come soon.

For the convenience of our valued customers, this is the way UCB would like to modernize it and serve them better by introducing state-of-the-art banking concept as the first generation local private bank.

Consider online banking with customer’s credit union for instant organization and access to all of their account information. With online banking, information about deposits, payments, statements, and all transactions is immediately available with only a few key strokes 24 hours every day.

Bill Paying:

Use online banking to pay the bills, transfer money between accounts and monitor the spending. When customers pay their bills online they will need to take 15-30 minutes to set up their vendors (lists of payees, addresses, account numbers, etc.).  After that, it takes mere seconds to set up a bill payment. Anyone can opt for automatic payments on a date of his choosing or he can point and click each month.

Bills paid via online banking arrive at their destination in as few as two days. You don’t need stamps, envelopes or even a pen. Best of all, online banking compiles and allows you to access your payment history for every vendor on your payee list.

 Saving Money by Banking Online:

Not only will anyone save himself the worry of searching for perpetually lost cancelled checks and bank statements you will also save a little money. Most credit unions offer online banking services and e-statements, etc. to their members at no cost with direct deposit or a qualifying account (usually as a benefit of a home equity loan or money market account).

 Budgeting and Tracking Spending Advantages:

Online banking is infinitely more convenient than waiting for any paper statement each month or even telephone banking. Customers transactions are recorded in real time and you can see them as they occur. When anyone avail himself of online banking services he will better able to track and monitor his spending, even find that it is easier to follow a budget and to avoid overdraft charges with online banking because he would get a visual of his spending.

A great deal of technological thought and energy is being brought to the task of maintaining Internet safety. Customers banking information is encrypted and there is no chance that third parties can peek in. There is ample evidence that consumers have become more comfortable with online financial transactions. For instance, check printing has seen a decline and online shopping has seen a substantial increase. Financial institutions support our increasing embrace of online banking because it streamlines transactions and costs a great deal less than paper based transactions. Credit Unions pass these savings on to their members.

UCB provides Any Branch Banking facility in the following branches:

Principal Branch, Dhaka

Elephant Road Branch, Dhaka

Elephant Road Branch, Dhaka

Mohakhali Branch, Dhaka

Gulshan Branch, Dhaka

Mohammadpur Branch, Dhaka

Mirpur Branch, Dhaka

Moulvi Bazar Branch, Dhaka

Uttara Branch, Dhaka

Nawabpur Branch, Dhaka

Narayanganj Branch

Agrabad Branch, Chittagon

Khatunganj Branch, Chittagong

Jubilee Road Branch, Chittagong

Malibagh Branch, Dhaka

Islampur Branch, Dhaka

Tongi Branch, Dhaka

Dhanmondi Branch, Dhaka

 UCB Credit Card:

 Features of UCB Credit Card:

• Truly global – Locally & internationally transact able with the same card. This is a dual product.
• Higher coverage of acceptance globally in POS terminals & ATMs.
• Latest & best quality product at lowest price (annual fee) in the market
• Reward point for spending leads to wining of attractive prizes.
• Choice of colors in Classic (Silver) products.
• Credit Card for ladies – first time in Bangladesh.

Product Type & Annual Fees:

Documents Required for UCB Card:

1. Salaried:     a) Two copies of passport or stamp size photograph

                        b) Latest Salary Certificate or pay slips

                        c) Personal bank statement for last 6 months

                        d) TIN Certificate photocopy

                        e) Passport photocopies (first 5 pages & last 3 pages)

 2. Self Employed

       (Proprietorship): a) Two copies of passport or stamp size photograph

                                  b) Trade License photocopy

                                  c) Personal bank statement for last 6 months

                                  d) TIN Certificate photocopy

                                 e) Passport photocopies (first 5 pages & last 3 pages)

4. Self Employed
(Limited Company): a) Two copies of passport or stamp size photograph

                                 b) Memorandum of Association

                                 c) Personal bank statement for last 6 months

                                 d) TIN Certificate photocopy

                                e) Passport photocopies (first 5 pages & last 3 pages).

Public Relation Affairs:

United Commercial Bank arranges a lot of events to reach closer to the public as well as their customer to create a brighter reputation of the bank.

May 28, 2008

Agreement signing with ALICO:

UCB signed “Security Mask” agreement with ALICO on May 28, 2008 under which UCB Credit Card holders will get double insurance benefit. In case of death or permanent disability ALICO will pay outstanding in the Credit Card A/C as well as pay same amount to the family of the card holder. This facility is unique in Bangladesh. Mr. Shah A Sarwar, Managing Director (CC) & Mr. Md. Nurul Islam, Regional Senior Vice President, ALICO, MEASA signed the agreement on behalf of their organization. Mr. A. K. M. Kamaluddin, Deputy Managing Director; Mr. M. S. Kamaluddin, Deputy Managing Director; Mr. M. M. Rafiqur Rahman, EVP; Mr. Ruhul Amin, EVP; Mr. Tariqul Azam, EVP; Mr. Nawed Iqbal, EVP & Head of IT and Mr. S H Shohag, FVP & Head of Cards from UCB and Mr. Ossman Charabati, Sr. Regional Director GMD, ALICO MEASA, Mr. Md. Alamgir Hossain, Group Manager; Mr. Muhammad Arif Shams, Sales Manager & Mr. Ishtiaq Mahmud, Officer from ALICO were present in the occasion.

 June 02, 2008

 UCB signs bilateral corporate agreement with SQUARE Hospital:

UCB signed bilateral corporate healthcare agreement with SQUARE Hospital Ltd on 2nd June, 2008. Under these agreements, all the Dual Currency UCB International Credit Card holders & every employee of UCB and their dependants will get privileged coverage of health check-ups, medical consultations, diagnostic services, and outdoor & in-patient services at a special rate in Square Hospital. Also UCB will provide credit cards to SquareHospital employees at a special discounted rate.

Mr. A K M Kamal Uddin, Deputy Managing Director, United Commercial Bank Ltd. and Mr. K M Saiful Islam, Director, Square Hospital Ltd signed the agreement on behalf of their respective organizations.

Mr. Nawed Iqbal, Executive Vice President & Head of IT; Mr. Md. Shahadat Hossain Shohag, First Vice President & Head of Cards; Md. Shafiul Islam Sumon, Team Leader (Sales); Mr. Biswajit Saha, Deputy Team Leader (Sales) from United Commercial Bank Ltd. Mr. Md Yousuf Siddique, Manager-Accounts & Finance; Dr Md Faisal Zaman, Manager-Marketing & Business Development; Mr. M. A. Jalil Khan, Coordinator¬-Patient care & Business Development and Mr. Maruf Ahmed, Executive-Marketing & Business Development from Square Hospital Ltd were present at the signing ceremony.

May 3, 2008

Neighborhood Campaign at Dhanmondi:

1. UCB ran a 3 day neighborhood campaigning on Retail Banking products; IT & Card based products from 3rd May to 5th May, 2008. This campaign covered whole Dhanmondi and Lalmatia area centering the UCB Dhanmondi Branch located at Dhanmondi Road no. 27. UCB sales team experienced spontaneous query of the people about Banking products & services during the 3 day campaigningAnalysis:

   First Vice President or the Manager is the chief executive of this office. All the activities of the office are done under the direct supervision of the  Manager.

   For smooth functioning of the office, the activities are divided into two types:
   a. Inspection activities &
   b. Banking activities.

   Banking activities:

   This banking department provides the inter bank clearing house facility among the member scheduled banks, remittance facility, TT discounting, TT Re-sale etc and records the treasury functions done by Sonali Bank. As instructed time to time by the Currency Officer, the department also sends and collects government remittance from different branches of Sonali Bank. The department also offers Issuing and encashment facility of Sanchay Patra and Prize bond. The cash counter under this department gives exchange value of mutilated and torn notes.

   Cash Department, Deposit Accounts Bivagh (DAB), Public Accounts Department (PAD), Currency/Claims Section and Prize-bond and Sanchay Patra Section of banking department do the above-mentioned activities. Senior Vice President heads the department. Two Joint Managers assist him.

   An Engineering Department is engaged to provide infra structural and maintenance facility of the office. Another SVP looks after the department.

   Today card division is the busiest sector. Most of the people want a credit card for their transaction as they are not interested to convey the cash with them. They compare in rate of interest of different bank and then decide to open the card.

   Everyday a lot of transaction will be held from other school or other institution. The OxfordInternationalSchool is opened an account in Dhanmondi branch of UCB. Here the students pay their tuition fees and the bank collects, calculate and organize it. Then the bank gives it to the school authority and the authority gives the charge of the bank. In the same way other financial institution like Midas Financing Ltd. GEMCON Group has opened their account in this branch for their transaction. Bank handles their transaction and takes its charge.

   A number of customer come here everyday to open account here, specially FDR as the bank gives an attractive interest on FDR. The people want to increase their money within short period and bank also tries to hold the liquid asset as much as possible.

   Appointment, transfer, posting, leave, salary/allowance, medical facility, stationary, furniture etc facility of the officers and employees are fulfilled by Administration Section, Salary Section, Advance Section, Welfare Section, Dead-Stock Section, Stationary and Old Record Section. The SVP, AVP of the banking department is the chief of the above sections. A Joint Manager assists him. Service is engaged as supportive staff. Members of Bangladesh Police Force and 20 Security guards and one supervisor supplied by Security Service are used to ensure the security and safety of the office.

    Recommendation:

   General Banking Activities includes a lot of financial system as well as implication of financial rules and regulations. Today bank is the top most regulated institution of the country. As bank deals with the money of general people so government put a lot of rules and regulation of banking act. Especially private banks are always being in under control of Bangladesh Bank. So to do the banking activities The United Commercial Bank should be very careful about rules and regulation. As it is come out from a very big crisis so it should be very careful about its activities.

   The bank has been passed 25 years, so it is almost the first private sector bank in our country. So naturally the rules, the concept of management should be renewed. As the competition is going to harder day by day and a lot of foreign bank have been entered into market so the time and efficiency of their service must be better.

   Customer satisfaction is the most valuable matter in today’s banking operation. Now a days customer want a clean and clear concept of all the services like the interest rate of FDR, Savings accounts as well as the service charge and other banking charge. So the management must be able to provide this information clearly and satisfactorily. The management should bear in mind that today’s customer and the 25 years back customers are not same. Now days all customer are educated and they can compare the service, the charges of one bank to another bank and they have a lot of options.

   The Bank should increase the technological advantage in all branches. There are a lot of branches of United Commercial Bank Ltd around the country but the technological expertises of all branches are not same. Most of the branches outside big town don’t have e-banking or online banking facilities. Sometime the employees of those branches are not able to use latest technology effectively as a result time and money waste. So the management should give proper training to them and should arrange the same technological facilities in all branches.

   Customers’ information should upgrade regularly to avoid unnecessarily harassment in front of audit team of Bangladesh Bank. It is very use full incase of sanctioning loan to the customer. The Bank should hold on their effective customer in order to sustain a continuous growth.

   The management should collect the information of the other competitors about their customer, their rate of interest, and their charges so that they can easily convince their customer and increase their deposit.

   The ratio of the liquidity and the long-term asset should be maintained properly to avoid any unexpected scenario. It should introduce ATM card system that is very widely used banking facility.

   The Bank should introduce other new policy to operate banking activities like Outsourcing. The competitive working environment and the need to focus on core activities force today’s financial institutions to outsource some services, critical to their business, for which they have limited expertise and/or limited funds The Banking Law and the recently-relevant legislation comprise provisions with respect to outsourcing in light of global trends. . The Banking Law provides the definition of outsourcing companies (supporting service providers) in Article 3; however it leaves the details of application to the secondary legislation. Regulation regarding the Procurement of Outsourcing Services by Banks and Authorization of the Service Providers (the “Outsourcing Regulation”) enacted on 1 November 2006 regulates outsourcing companies and the specifications of outsourced services

   Conclusion:

   After analyzing all the general banking activities of United Commercial Bank Ltd. it is very cleared that these is a well reputed and one of the oldest private bank of our country. It has a lot of branches but it is not possible for the management to develop all the branches at a time but they are very dedicated to improve the technology, the banking services as well as to gain the customer satisfaction. But they should be rear in mind about the nature, the demand of the present customer because the conception of the customer satisfaction has been changing continuously. So they must develop research and development sector, they should collect information about the competitors and upgrade those information.  ‘United we achieved’ this is the key term of the bank so they work cooperatively and coordinately to become the market leader of this banking sector. So they have to be very honest about their product and service to beat the competition.