General Banking Activities & Loan-Advance Of

Internship Report On
General Banking Activities & Loan-Advance

Of Uttara Bank LTD.

Dilkusha Branch, Dhaka

Prepared For:
Mr. Sayed Farrukh Ahmed Lecturer Faculty of Business and Economics Daffodil International University

Prepared By:
M d . F a r u q u e S h a h r ia r K h a n ID : 033-11 -305 Program: BBA

DAFFODIL INTERNATIONAL UNIVERSITY

Dhanmondi, Dhaka

LETTER OF TRANSMITTAL

June 07, 2007

Mr. Sayed Farrukh Ahmed Faculty of Business and Economics Daffodil International University Dhanmondi, Dhaka-1207 Subject: Submission of Internship report- General Banking activities & LoanAdvance of Uttara Bank Limited. Dear Sir: It is my pleasure to submit before you my internship report titled General Banking activities & Loan-Advance of Uttara Bank Limited according to your guideline.

I have worked thee months in the particular branch and tried to understand all the aspect of the banking activities. I tried my best to prepare the report on the particular topic. Though I have faced some difficulties to preparing the report, I enjoyed to doing that. I believe that this report will give us clear cut picture of banking activities of Uttara bank. It has been a huge learning experience for me and I have enjoyed preparing this report and look forward to answering any queries you may have.

Thanking You

Sincerely yours,

______________________ Md. Faruque Shahriar Khan ID: 033-11-305 Program: BBA

E X E C U T I V E SU M M A R Y
Banking sector is playing an important role into our national economy. Lots of banks are involved in this sector. They contribute highly to the GDP. The main motive of bank is giving services to the people and gain profit from that. Banks are collecting money from on party (as a deposit) and lending them to another party. By that procedure they are mobilizing the money and help the country to develop. I have completed my internship in Dilkusha branch of Uttara Bank Limited. My internship report is on General banking activities & Loan-Advance of Uttara Bank Limited. I have worked in several departments like, General Banking, Loan-advance and gain some knowledge which will help me in my future life. Uttara bank limited introduced its activities named as Eastern banking corporation in the year of 1965. After 1972 the bank is introduced as a nationalized bank. Uttara Bank Limited was formed as a private Bank in 1983. Now Uttara bank Limited operates 202 branches around the country, among them 199 branches has computer facilities. The bank has more than 600 foreign correspondents world wide. Total number of employee is about 3000. Till the year of 2006, total asset is TK 45,217,006,469 and total capital is TK 2,272,970,808. There are different departments like accounts opening, deposit, remittance, clearing, computer are involved into the general banking. In account opening section any individual\company can open any account by submitting proper documents. Deposit section is engaged to collecting money as a deposit from the customer. Customers can transfer money from one bank to another bank\ one branch to another branch by remittance section. By cash section people can directly withdraw and deposit money. In accounts section various kinds of documentation is prepared for bank. Uttara Bank Limited, Dilkusha branch gives various kinds of loan to the borrower like CC Hypo (Cash Credit Hypo), CC Pledge (Cash Credit Pledge), Overdraft (Secured Overdraft), UHRL (Uttara House Repairing Loan), SBL (Small Business Loan), PLS (Personal loan). After complete all the documentation, the proposal sent to the head office. Head office checks the entire document. If head office is satisfied and the client agrees with terms and conditions, loan is disbursed. Then bank start to collect installment with regular basis and monitoring whether client pay it or not. If client tend to be defaulter, bank remind frequently by phone, sending letter and communicate with directly. Though Uttara bank limited operates its function for a long time, they have some problems. Still now they are using manual banking system, as a result they are lagging behind the competition and loosing the customers. The database management system is not automated; as a result they can not perform their activities smoothly. In loan and advance section the employees are not as much careful about the documentation; as a result there are a huge bad debt occurs.

Uttara bank limited should introduce computerized banking system. They should diversify their products. They can introduce ATM, SMS banking. Database management system should be automated; as a result they can smoothly do their activities. In loan and advance section the employees need to be precautious, as a result the bank can reduces its bad debts.

ACKNOWLEDGEMENT
To perform internship program successfully and report writing on it is not an easy task. It mainly requires help and co-operation from the respective persons. At the time of internship, I also felt such and obtained cordially. So, at the time of writing this report I am remembering those kind-hearted persons with best regard.

First of all, I am expressing my sincere gratefulness to Almighty Allah for enabling me to prepare this Report.

I would like to give my heartiest gratitude to our Pro. VC sir for issuing forwarding letter to Uttara Bank Limited, by which I was able to begin my internship.

Then I would like to express my gratitude to my advisor Mr. Sayed Farrukh Ahmed, for his cordial help, advice and proper guideline that inspired me to perform my duty properly.

Again, I would like to express my gratitude to Mr. Mukhlesun Nabi, branch manager, for giving me such a chance of internship in his branch. Then I want to give my thanks to Mr. Faruk, Mr. Shalil Kumar Datta and other different officials of UBL, Dilkusha branch, for their co-operation. I express my gratefulness to all my colleagues for their cordial help and friendly character.

Finally, I would like to extend my deepest thanks to my parents and other family members. Without their co-operation I would not able to complete my BBA program.

TABLE OF CONTENTS

Letter of Transmittal Executive Summary Acknowledgement 1.0 Introduction 1.1 Origin of the Report 1.2 Scope of the Report 1.3 Objective of the Report 2. Company profile 2.0 Introduction 2.1 Overview of UBL 2.2 History of UBL 2.3 Financial Condition of UBL 2.4 Vision of UBL 2.5 Missions of UBL 2.6 Goal of UBL 2.7 Objective of UBL 2.8 Structure of UBL 2.9 Hierarchy of position 2.10 Different wings of UBL 2.11 Services of UBL 2.12 Recent Performance of UBL 2.13 Balance sheet of UBL 2.14 Profit& Loss Account of UBL 2.15 Liquidity Statement of UBL 2.16 SWOT Analysis of UBL

I II III 1 1 1 1 2-25 3 3 3 4 4 4 5 5 6 7 8-9 10-14 15-19 20-22 23 24 25

TABLE OF CONTENTS

3. Learning part 3.1 General Banking Activities of UBL 3.1.0 General Banking 3.1.1 Account opening Section 3.1.2 Deposit Section 3.1.3 Cash Section 3.1.4 Remittance Section 3.1.5 Clearing Section 3.1.6 Accounts Section 3.1.7 Computer Section 3.2 Loan & Advance of UBL 3.2.0 Loan and Advances 3.2.1 Types of Loan 3.2.2 Loans & Advances of Dilkusha Branch 3.2.3 Procedure of preparing Proposal for Loan 3.2.4 Loan disbursement 3.2.5 Calculation of Overdue Payment of Dilkusha Branch 3.2.6 Problems with advances of Dilkusha branch 3.2.7 Different interest rate of UBL (Dilkusha branch) 3.2.8 Loans and advance of Dilkusha branch 4. Findings and Recommendation 4.0 Findings 4.1 Recommendation 5. Conclusion 6. Appendix 7. Bibliography

26-34 27 27 29 31 31 32 33 34 35-45 36 37 38-39 40-41 41 42 42 42 43 44-46 45 46 47 48 49

1.0

Introduction

The financial system of Bangladesh consists of Bangladesh Bank (BB) as the central bank, 4 nationalized commercial banks (NCB), 5 government owned specialized banks, 30 domestic private banks, 10 foreign banks and 28 non-bank financial institutions. The financial system also embraces insurance companies, stock exchanges and co-operative banks. In our country Bangladesh Bank (BB), as the central bank, has legal authority to supervise and regulate all the banks. It performs the traditional central banking roles of note issuance and of being banker to the government and banks. Commercial banks and domestic private banks are the profit-making institution that holds the deposits of individuals & business in checking & savings accounts and then uses these funds to make loans. Both general public and the government are dependent on the services of banks as the financial intermediary. We have chosen Uttara Bank Limited as a representative of other private banks. We have learned so many things in our course and here we tried to relate the theories with real life situation and also find out the similarities.

1.1 Origin of Report

This report is prepared as a mediatory requirement of BBA at Daffodil International University. This report will mainly highlight the banking operations of Uttara Bank Limited.

1.2 Scope of the report

General banking is the heart of a bank. Here the customer will deposit money, withdraw it, involve with various type of remittances. On the other hand Loan and advances is very much important for the national economy. Without that the investment opportunity might be reduced, as a result the GDP of a particular economy will be reduced. From the report we will able to understand about the general banking operation and maintaining the loan and advances of Uttara Bank Limited.

1.3 Objective of Report:

To fulfill the requirement of BBA program Determine the activities of Uttara Bank Limited as commercial bank To make an assessment of General Banking activities and Loan-advance of UBL.

2.0 Introduction:
Banking sector is playing an important role in the economic growth of Bangladesh. Now a days there are a lot of banks are introduced and do their activities and gain profit, as a result they can contribute to the total economy of the country. In recent days the banking sectors are made a huge margin of changes due to globalization, technological innovation, deregulation, customer satisfaction etc. Bangladesh Banking sector is changing like that but the pace of changing is not as much as the foreign countries have. To preparing a good report on Uttara Bank Limited, it is necessary to prepare the profile of the Bank. I tried my best to prepare the profile of Uttara Bank Limited.

2.1 Overview of UBL

Uttara Bank Limited is one of the largest and oldest private-sector commercial banks in Bangladesh, with years of experience. Adaptation of modern technology both in terms of equipment and banking practice ensures efficient service to clients. 202 branches at home and 600 affiliates worldwide create efficient networking and reach capability. Uttara Bank Limited is a bank that serves both clients and country. It operates through 199 fully computerized branches ensuring best possible and fastest services to its valued clients. The bank has more than 600 foreign correspondents world wide. The Board of Directors consists of 14 members. Total number of employees nearly 3,000. The bank is headed by the Managing Director who is the Chief Executive Officer.

2.2 History of Uttara Bank Limited

Uttara bank Limited was initially introduced as Eastern Banking Corporation in the year of 1965. Its head office was situated in Dhaka. In the year of 1972 the bank was introduced as a nationalized bank (Order No.26 of 1972) named as Uttara Bank Limited. After that it was functioning its activities as a nationalized bank like other six nationalized bank of Bangladesh. As a part of government policy the bank was functioning its activities and contributes in the national economy. In the year of 19831984 the bank was privatized. In this regard Uttara Bank Limited was formed as a private Bank in 1983. Since then the bank has been taking various steps that are very much effective in the context of the economy of Bangladesh. Then the bank has taken significant steps and contributed highly in the national economy.

According to the rules and regulation of Bangladesh bank, Uttara Bank Limited has taken all kinds of commercial Banking activities and made itself as a successful commercial bank of Bangladesh. The main motive is to capture the competitive environment of banking sector and gain profit.

2.3 Financial condition of Uttara Bank Limited

According to the year of 2006 the bank has total capital is about Tk. 227.30 crore by combining the entire branch (202 Branch). About Tk.20 crore was paid by capital. Total asset was 4521.70. In the year of 2006 the banks Profit after tax & provision was about Tk.24.9 crore which was about TK 14.3 crore in 2005. The growth rate of profit was about 74%. Net income per share is TK 124.59

2.4 Vision of Uttara Bank

To be the leading commercial bank in the country & contribute maximum to the welfare for the people of the country. Prime objective is to deliver a quality that demonstrates a true reflection of our vision. Excellence in banking.

2.5 Mission of Uttara Bank Limited

We shall be the forefront of national economic development by:

Maintaining the maximum ethical standards and community accountability praiseworthy of a leading corporate citizen. Continuously improving productivity and profitability, and thereby enhancing shareholder value. Creating and maintaining a set of efficient and hard working employees.

2.6 Goal of Uttara Bank Limited

Short term Goal: Increase financial services day by day. Earn satisfactory profit by giving services to the customer. Long term Goal: Maximize the wealth of shareholders and want to be a leading bank in the Banking sector of Bangladesh.

2.7 Objective of Uttara Bank Limited

To increase services (backed by technology) by efficient employees. To increase deposit mobilization. For smooth functioning of foreign trade, establish large foreign network. Expand the credit facilities for the customers. To maintain a good position in competitive banking sector of Bangladesh. To increase the credit facilities for the corporate sector

2.8 Structure of the UBL

Board of Directors: Chairman Vice-Chairman Managing Director Directors : Mr. Azharul Islam : Mr. Md. Asadujjaman : Mr. Shamsuddin Ahmed : Md. Mahfuzus Subhan Prof. Sharif Md. Shahjahan Prof. Dr. Abu Hossain Siddique Mr. Syed A. N. M. Wahed Mr. Abul Barq Alvi Mr. Mustafizur Rahman Mr. Faruque Alamgir Mr. Shah Habibul Haque Mr. Md. Lutfar Rahman Col. Engr. M. S. Kamal (Retd.)

Executive Committee: Chairman Vice Chairman Directors : Mr. Azharul Islam : Mr. Md. Asaduzzaman : Mr. Md. Mahfuzus Subhan Prof. Dr. Abu Hossain Siddique Mr. Shah Habibul Haque Managing Director : Mr. Shamsuddin Ahmed

2.9 Hierarchy of position

Managing Director
Deputy Managing Director Assistant Managing Director

General Manager

Deputy General Manager

Assistant General Manager

Senior Principle Officer

Principle Officer

Grade-1 Officer

Grade-2 Officer

2.10 Different wings of UBL

Head office
Managing Director's Secretariat Chairman's Secretariat Board Department
Share Department MIS & Computer Department Establishment Department Stationary & Records Department Transport Department

Human Resources Division

Personnel Department Test Key Department Disciplinary Department

Marketing Division
Business Development Department Branches Department Engineering Department Public Relations Department

Credit Risk MGT Division

Credit Approval Department Credit Admin & Monitoring Department Credit Marketing Department Credit Marketing Department

Central Accounts Division

Test Key Department Disciplinary Department

Internal Control & Compliance Division

Personnel Department Test Key Department Disciplinary Department

2.11 Services of UBL:

To do better in the banking sector of Bangladesh, UBL offers various kinds of banking services to the customer. Followings are some of those services which are frequently uses:

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

Requirement for opening of the A/c: o The account opening form and signature card to be filled in and duly signed. o Two copies passport size photographs of the account holder. o Photograph of nominee (if any) duly attested by the account holder. o Photocopy of the 1st 7 pages of the passport for non-resident Bangladeshi national. o Signature in the account opening form/card must be same with the signature of the passport.

Current Account Current account is purely a demand deposit account. There is no restriction on withdrawing money from the account. It is basically justified when funds are to be collected and money is to be paid at frequent interval.

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

International Banking: Plays vital role in import, export and other foreign currency of the country through more than 600 foreign correspondents world wide. Renders fastest service to the exporter and importer through its SWIFT service. Offers competitive price for importers and exporters Provides support to the exporter and importer by extending working capital, preshipment, post- shipment facilities. Upholds its commitment in international payment

Foreign Remittance Any Bangladesh national residing, working and earning abroad can remit their earnings in Bangladeshi Taka as well as in foreign currency through the Banks/Exchange Companies having drawing arrangement with Uttara Bank Limited. Such remittances are delivered to the beneficiaries expeditiously through its close/wide network of 201 branches all over the country. It also ensures delivery of remittance to the beneficiary within 24 hours. Any person can take the service of the 600 correspondents of UBL world wide for remitting any foreign currency to his beneficiary in the country.

Foreign Currency Account Foreign Currency Account for private individual/firm/organization. o Any person/firm/organization who earns foreign currency can open Foreign Currency Account with UBL. o Payments in foreign currency may be made freely abroad from this account and local payment in Taka may also be made from this account. o Bank pay interest provided the accounts are maintained in the form of them deposit for minimum period of 90 days.

Foreign Currency Account for Bangladeshi Nationals Working and earning abroad. o No initial deposit is required. o A/c holder may nominate his nominee to operate the account. o The account Holder can freely transfer entire amount in foreign currency anywhere he chooses or can convert into Bangladesh Taka currency. o Funds from this account may also be issued to the account holder upto his entitlement for the purpose of his foreign travels in usual manner

Resident Foreign Currency Deposit Account o Persons ordinarily resident in Bangladesh may open and maintain RFCD Account with foreign exchange brought in at the time of his return from travel abroad. o Any amount brought in with declaration to customs authorities can be deposited in this account. o Balance in this account can be freely transferred abroad. o Funds from this account may also be issued to the account holder for the purpose of his foreign travels in the usual manner. o Interest in foreign currency is paid in this account if the deposits are for a term of not less than one month and the balance is not less than US$ 1000 or its equivalent. Non-Resident Foreign Currency Deposit Account o All Non-Resident Bangladesh nationals and persons of Bangladesh Origin including those having dual nationality ordinarily residing abroad may open this account with Uttara Bank Ltd. o The NFCD account may be opened in single/joint name for a period of 1, 3, 6, 12 months. o This account may be maintained as long as account holder desires. o On maturity the account holder can encash it in local currency or can transfer the amount including accrued interest anywhere he likes. o Initial deposit US$ 1000 or GBP 500 sterling or equivalent currency. o The account offers attractive interest. Payable in foreign and tax free. o The account with accrued interest can be renewed either of the instruction of the account holder or be renewed automatically if there is no instruction otherwise. o No interest is given on premature encashment.
NFCD Interest Rate Currency 1 Month US$ GBP 0.8000 3.0075

3 Month 0.7775 2.9875

6 Month & Above 0.7200 2.9100

Lease Financing UBL started Lease Financing since September1999.

UBL offers opportunity of financial assistance for:

Capital Machinery. Heavy Construction Equipments. Lift. Air-Conditioner. Vehicles. Medical Equipments. Consumer Durables.

Special Features

UBL provides 100% fund for purchasing equipment/machinery. No down payment is required. Tax benefit. Financial Assistance without out flowing own fund. Off Balance sheet Financing.

Treasury and Dealing Room: UBL has got its independent treasury and dealing room equipped with Reuters Dealings System and provides quality services.

Effective service to the client. Daily exchange rate buying and selling Forward cover at competitive price. Deals in foreign currency with Central Bank, Commercial Bank and other potential clients. Buying and selling third currency with all leading banks worldwide. Covers exchange fluctuation risk by providing competitive premium.

2.12 Recent Performance of UBL

S.N. 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 Particulars
Paid-up-Capital Total Capital Capital surplus/(Deficit) Total Assets Total Deposits Total Loans & Advances Total Contingent Liabilities Credit Deposit Ratio (%) Ratio of Classified Loan to total Loans & Advances (%) Profit after tax & provision Amount of classified loan during the current year Provision kept against classified loans Provision surplus /(deficit) Cost of Fund (%) Interest earning Assets Interest non-earning Assets Return on Investment (ROI) % Return on Assets (ROA)% Income from Investment Earning per Share (Taka) Net income per Share (Taka) Price Earning Ratio (Times)

2006 (In Taka)

199,664,800 2,272,970,808 190,013,808 45,217,006,469 39,360,207,187 25,163,857,021 7,428,456,156 63.93% 15.04% 248,753,254 1,067,100,000 907,448,567 116,872,567 4.68% 34,858,397,642 10,358,608,827 5.83% 0.60% 557,886,624 124.59 124.59 16.89

2005 (In Taka)

99,832,400 2,004,050,376 192,973,376 42,062,201,299 36,891,910,320 21,851,539,700 8,538,820,824 59.23% 16.15% 142,710,008 1,080,500,000 853,751,185 126,736,185 4.14% 32,723,645,096 9,338,556,203 8.77% 0.34% 882,318,102 142.83 142.83 19.68

Change (%)
100 13 -2 8 7 15 -13 8 -7 74 -1 6 -8 13 7 11 -34 76 -37 -13 -13 -14

Total Assets: In the year of 2006 total asset of the Bank is 45,217,006,469, which was 42,062,201,299 in
2005. So increasing of asset is 8%.

4550 4500 4450 4400 4350 4300 4250 4200 4150 4100 4050 4000 Asset (In Crore)

Year 2006 Year 2005

Total Capital: In the year of 2006 total asset of the Bank is 2,272,970,808, which was 2,004,050,376 in
2005. So increasing of capital is 13%.

Total Capital (In crore)

230 225 220 215 210 205 200 195 190 185 2006 2005 Total Capital (In crore)

Paid- Up- Capital: In the year of 2006 total paid up capital of the Bank is 199,664,800which was 99,832,400 in
2005. So increasing of paid up capital is almost 100%.

20 18 16 14 12 10 8 6 4 2 0 Paid-up-Capital (In Crore)

Year 2006 Year 2005

Total Deposit: In the year of 2006 total paid up capital of the Bank is 39,360,207,187which was
36,891,910,320in 2005. So increasing of deposit is almost 7%.

3950 3900 3850 3800 3750 3700 3650 3600 3550 Total Deposit (In Crore) Year 2006 Year 2005

Total Loans & Advance: In the year of 2006 total loan and advance of the Bank is 25,163,857,021which was
21,851,539,700 in 2005. So increasing of loan and advance is almost 15%.

Total Loan & Advance (In Crore)

2600 2500 2400 2300 2200 2100 2000 2006 2005 Total Loan & Advance (In Crore)

Profit after Tax & Provision: In the year of 2006 total Profit after tax & provision of the Bank is 248,753,254 which was 142,710,008 in 2005. So increasing of profit after tax & provision is almost 74%.
Profit after Tax & Provision (In Crore) 30 25 20 15 10 5 0 2006 2005 Profit after Tax & Provision (In Crore)

Income from Investment: In the year of 2006 total income from investment of the Bank is 557,886,624which was
882,318,102in 2005. Here we can see that return is 37% negative.

90 80 70 60 50 40 30 20 10 0 Income from Investment (In Crore) Year 2006 Year 2005

Income per Share: In the year of 2006 total income per share of the Bank is 124.59 which was 142.83 in 2005.
Here we can see that income is reduced by 37%.

145 140 135 130 125 120 115 Net Income Per Share (In Taka) Year 2006 Year 2005

2.13 Balance Sheet of UBL:

Property and Assets
PARTICULARS Cash In Hand (including foreign currencies) Balance with Bangladesh Bank and its agent Bank (including foreign currencies.) 2006 TAKA 4,198,204,110 1,218,636,280 2,979,567,830 2005 TAKA 3,900,921,392 1,028,655,935 2,872,265,457

Balance with other Banks and Financial institutions In Bangladesh Outside Bangladesh Money at call and short notice Investments Government Others Loans and Advances Loans, Cash Credits, Over Drafts etc. Bills discounted and purchased Furniture and Fixtures Other Assets Non Banking Assets TOTAL ASSETS 2,586,566,001 2,350,103,677 236,462,324 130,000,000 9,564,540,621 9,498,487,782 66,052,839 25,163,857,021 22,636,865,795 2,526,991,226 942,071,927 2,631,766,789 45,217,006,469 2,697,313,652 2,501,479,672 195,833,980 810,000,000 10,062,105,396 9,995,574,557 66,530,839 21,851,539,700 19,834,853,491 2,016,686,209 776,234,974 1,964,086,185 42,062,201,299

Liabilities and Capital Liabilities

Particulars Borrowings from other Banks, Financial Institutions and Agents Deposits and other accounts Current and Other Accounts etc. Bills Payable Savings Bank Deposits Fixed Deposits Bearer Certificate of Deposit Other Deposits Other liabilities TOTAL LIABILITIES CAPITAL/SHARE HOLDERS' EQUITY Subscribed and paid up capital Proposed issue of bonus share (1:1) Statutory reserve Other reserve Profit and Loss account surplus TOTAL SHARE HOLDERS' EQUITY TOTAL LIABILITIES & SHARE HOLDERS' EQUITY 199,664,800 199,664,800 520,837,039 1,161,297,628 3,974,555 2,085,438,822 45,217,006,469 99,832,400 99,832,400 510,837,039 1,150,962,512 3,569,539 1,865,033,890 42,062,201,299 2006 Taka 56,194,089 39,360,207,187 10,473,849,824 1,074,690,778 16,874,922,684 10,037,191,494 915,000 898,637,407 3,715,166,371 43,131,567,647 2005 Taka 46,508,006 36,891,910,320 9,382,984,326 1,312,766,792 15,115,144,287 10,233,066,793 700,000 847,248,122 3,258,749,083 40,197,167,409

Off Balances Sheet Items

Particulars CONTINGENT LIABILITIES Acceptances & endorsements Letter of guarantee Irrevocable letter of credit Bills for collection Other contingent liabilities TOTAL CONTINGENT LIABILITIES OTHER COMMITMENTS Documentary credits and short term trade related transactions Forward assets purchased and forward deposits placed Un drawn note issuance and revolving underwriting facilities Un drawn formal standby facilities, credit lines and other commitments TOTAL OTHER COMMITMENTS TOTAL OFF- BALANCE SHEET ITEMS 7,428,456,156 8,538,820,824 1,564,096,472 3,756,960,802 3,163,182 2,104,235,700 7,428,456,156 1,781,422,766 4,332,078,250 3,032,418 2,422,287,390 8,538,820,824 2006 Taka 2005 Taka

2.14 Profit and Loss Account:

PARTICULARS OPERATING INCOME Interest-Income Less: Interest-paid on deposits, borrowings etc Net Interest Income Income from Investment. Commission, Exchange and Brokerage Other Operating Income Total operating income OPERATING EXPENSES Salary and allowances. Rent, taxes, insurance, electricity etc. Legal expenses Postage, stamp, telecommunication etc. Stationery, printing, advertisements etc. Managing Director's salary & allowances and fees Directors' fees and expenses Auditors' fees Repair, maintenance and depreciation of Bank's property Other expenses Total operating expenses Profit before provision Less: Provision for loans & advances Less: Provision for fixed assets Less: Provision for other assets Less: Provision for Investment Less: Total provision Transfer to benevolent fund Profit before tax Less : Provision for tax Profit after tax and provision Retained surplus brought forward Profit available for appropriation Appropriations Statutory reserve General reserve Dividend equalization reserve Proposed stock dividend (@ 1:1) Proposed dividend @ 20% Dividend distribution tax Total appropriation Retained earnings Earning per ordinary share (EPS) 2006 TAKA 2,742,042,728 1,756,834,891 985,207,837 557,886,624 823,676,310 311,527,018 2,678,297,789 994,854,499 117,657,488 10,802,194 48,091,196 35,076,463 5,254,000 1,893,500 130,000 72,228,655 110,406,540 1,396,394,535 1,281,903,254 400,000,000 12,650,000 412,650,000 2,500,000 866,753,254 618,000,000 248,753,254 14,819,061 263,572,315 10,000,000 10,000,000 199,664,800 39,932,960 259,597,760 3,974,555 124.59 2005 TAKA 2,000,879,507 1,477,761,444 523,118,063 882,318,102 1,079,480,693 302,335,955 2,787,252,813 798,455,291 114,740,446 11,769,483 47,349,320 30,080,212 4,345,833 1,467,500 130,000 77,147,784 87,176,936 1,172,662,805 1,614,590,008 730,000,000 22,300,000 77,200,000 829,500,000 2,500,000 782,590,008 640,000,000 142,590,008 778,411 143,368,419 20,000,000 99,832,400 19,966,480 139,798,880 3,569,539 142.83

2.15 Liquidity Statement:

Assets and Liability mutually analyzed as at 31st December, 2006.
Particulars Assets : Cash in hand Balances with other banks and financial institutions Money at call & short notice Investments Loans & Advances Fixed assets including Land, Buildings, Furniture & Fixtures Other Assets Non-banking assets Total Assets Liabilities : Borrowing from Bangladesh Bank , Other Banks, Financial Institutions & agents Deposits Other Accounts Provision & other liabilities Total Liabilities Net Liquidity Gap 56,194,089 11,340,644,806 1,074,690,779 330,726,523 12,802,256,197 (3,408,149,341) 8,241,612,121 8,241,612,121 1,240,369,652 14,144,218,314 338,935,507 14,483,153,821 (6,065,509,945) 4,516,895,816 2,929,439,147 7,446,334,963 5,051,245,154 42,145,351 116,065,194 158,210,545 5,267,483,302 56,194,089 38,285,516,408 1,074,690,779 3,715,166,371 43,131,567,647 2,085,438,822 1,218,636,280 3,316,133,831 130,000,000 507,467,152 3,605,576,130 616,293,463 9,394,106,856 2,250,000,000 7,001,640,912 230,340,861 9,481,981,773 250,183,040 6,393,743,199 39,120,686 1,734,596,951 8,417,643,876 8,190,963,642 4,114,577,633 186,826,658 5,212,184 12,497,580,117 615,926,787 4,048,319,147 716,124,583 45,323,330 5,425,693,847 1,218,636,280 5,566,133,831 130,000,000 9,564,540,621 25,163,857,021 942,071,927 2,631,766,789 45,217,006,469 Up to 01 month 01- 03 months 03-12 months 01- 05 years Above - 05 years Total

2.16 SWOT analysis of UBL

SWOT is the acronym for Strength, weakness, opportunity & threats. Typically strength & weakness exist within the organization. Opportunities & threats are normally originated outside.

Strength
Strong capital position & excellent management. Larger domestic & foreign network. Experience in banking sector. Large number of branches. Goodwill and reputation in banking sector. The charges are minimum, so the customer might be encouraged for investment.

Weakness
The operation is not computerized. Because of manual service, it is more costly and time consuming. The services are limited. Lack of promotional activities. Small Earning per share.

Opportunity
ATM, SMS banking, Phone banking. Introduction of online Banking

Threats
Increasing competition in banking sector. Smart operation of other bank. Quite sensitive to changes in economics condition.

High quality, efficient services.

By diversification of product the market can be segmented. By providing good service in the market EPS might be increased.

Rules and regulation of central bank. Loan defaulter. Political unrest of the country.

3.1.0 General Banking of Dilkusha Branch

General banking department is most important department in banking activities because cash transactions are made; clearing, remittance and accounting activities are done here. By that the funds are mobilizing. At Dilkusha branch of UBL, total 16 employees are involved and one AGM (Assistant General Manager) is supervising all activities. Followings are the departments that involve in general banking at Dilkusha branch: Account opening section Deposit Section Cash Section Remittance section Clearing section Accounts section Computer section

3.1.1 Account Opening Section

Account opening section begins the relationship between client and Bank. By that the customers enters in to the banking activities and do their work accordingly. It is the foundation of banker customer relationship. This section is very much important section of any bank because, the customers will deposit their money in to the bank, then the bank can invest those in to various sector. By that not only the bank but also the national economy will be benefited. One PO (Principle officer) is involved with account opening at Dilkusha branch. Account Opening procedure The Procedures that the Bank follows to open an Account: o Fill up the specific type of form (Savings\Current\Std etc.) that the bank has given to the customer. o The form should filled up by the applicant himself / herself o Two copies of passport size photographs have to give to the Bank. Incase of partnership account, all partners photograph have to submit. o Documentation procedures must be fulfilled by the applicants. o Applicant must sign specimen signature sheet that provided by bank. o Introducer is mediatory to open any account.

Introducers signature and accounts number will verify by authorized officer Authorized Officer will accept the application. Minimum balance has to deposit to the bank by applicant (only cash is accepted). Authorized officer will give entry to the register and open the account. After that the officer will give cheque book to the account holder. KYC (knowledge about your customer) should maintain.

o o

o o o

The account should be properly introduced by any one of the following: o An existing Current Account holder of the Bank. o Officials of the Bank not below the rank of an Assistant officer. o A respectable person of the locality well known to the Manager/SubManager of the Branch concerned.

Documentation for opening an account Individual / Joint Account Introduction of the account. Two photographs of the signatories duly attested by the introducer. Identity (copy of passport / Local chairman or commissioner certificate). Joint Declaration Form (For joint a/c only). Employees Certificate (in case of service holder). Partnership account Introduction of the account. Two photographs of the signatories duly attested by the introducer. Partnership letter duly signed by all partners. Partnership Deed, certified by Notary public. Registration (If any). Updated Trade license.

Closing of an account A customer may close his/her account any time by submitting an application to the branch. The fee for closing of an account is Tk.50. The closing of an account may happen in following ways If the customer want to close the account. If the account did not transected for a long time. If the bank finds any fraud about the customer. If the central bank wants to close any ones account.

3.1.2 Deposit Section

The term deposit of money means, to preserve money. After the consumption people want to save some money for future uncertainty. So they deposit it to the bank. On the other hand bank is a service organization that helps people to deposit their money for future. Banks main motive is to mobilize the money and gain profit. Banks give loan to other people, they invest it and give interest to the bank, by that the bank earns profit. By mobilizing that sum of money, not only the individuals but also the economy is benefited. There are four basic types of deposit are mainly used at Dilkusha branch of UBL: 1. Current Deposit. 2. Savings account. 3. Short term deposit (STD) 4. Fixed deposit (FDR)

Current Deposit Current deposit account can be called as a demand deposit account. When the banker accepts deposit on current account, he incurs an obligation to honour all cheques drawn by the customer. The account holders can frequently deposit and withdraw their money. There is no restriction of withdrawing the money. Naturally the businessmen who are frequently deposit and withdraw money are involved with this account. The bank will not give any interest to the account holder. Savings Bank Account Savings bank account is more popular. Naturally small-scale savers are involved with this account. There is a restriction on withdrawals in a month. The account holders are not able to withdraw their money frequently. Heavy withdrawals are allowed only against prior notice. The bank will pay interest for that. Uttara Bank Limited pays 5% interest for the account.

Short term deposit Government, Semi-Government, Autonomous organization and an individual may open STD Account with UBL. UBL offers attractive/competitive rate of interest in STD Account. For big amount withdrawal, a notice will be given by the holder before 7 days of the withdrawal date. Fixed Deposit (FDR) FDR is very popular and famous deposit. Bankers receive money on fixed deposit undertaking to repay the amount on the expiry of a specific period of time. Here the customer will deposit their money to the bank for a specific period of time. The maturity time may be varied. There is no further deposit and withdrawal is made. If the customers withdraw money before the maturity date, they will not get any interest. The interest rate is higher than other deposit. In Uttara Bank Limited the interest rate on FDR is 9%.

As per the closing entries-2006 of Uttara Bank Limited, Dilkusha branch: Particulars
Current and Other Accounts etc. Savings Bank Deposits Fixed Deposits Other Deposits Total

Amount (TK)
4,53,71,176.59 6,92,12,073.41 10,88,41,477.00 3,84,98,195.00 26,19,22,922.00

Percentage (%)
17.32 26.43 41.56 14.69 100

14.69

17.32
Current and Other Accounts etc. Savings Bank Deposits Fixed Deposits Other Deposits

41.56

26.43

3.1.3 Cash Section

Cash section is very much important for any bank. With out cash section no bank can do their activities properly. Cash section is directly related to the customer. In Dilkusha branch of Uttara bank a SPO is supervising the cash section. Following tasks are made in cash section: Here the customer deposit and withdraw money. Customer may receive different type of financial instrument like Prize bonds. Here the customers can pay their utility bills. The cash payments of any kinds of remittance (Pay order, Demand order etc.) are made here.

3.1.4 Remittance Section

Money transferred from one place to another through banking channel is called remittance. Remittances of funds are one of the most important activities of the Commercial Banks. Two PO (Principle officer) are maintaining all the activities of both local and foreign remittance at Dilkusha branch of UBL. The main instruments used by Dilkusha branch for remittance of funds are: Payment order (PO): Demand Draft (DD) Telegraphic Transfer (TT) Mail Transfer (MT) Pay Order (PO): Pay Order gives the payee the right to claim payment from the issuing bank Payment is made by the Issuing branch only. Pay order generally used in the clearing house area. Payment is made by the clearing. Commission is charged by the issuing branch. The deposit may be cheque or cash.

Demand Draft (DD): Demand Draft is an order of issuing branch on another branch of the same bank to pay specified sum of money to payee on demand. Payment is made by ordered branch. DD is generally used in the outside of clearing house area. Before payment the branch confirmed with sent advice and checks the test code. Commission is charged. By TT Issuing one branch request to another branch to pay specified amount of money to the specified payee though telephone. Payment is made by the ordered branch. Generally used anywhere of the country. Payment process: Confirm Issuing branch, confirm Payee account, confirmed amount, make payment, and receive advice. Commission and telephone bills are charged.

Telegraphic Transfer (TT):

Mail Transfer (MT): By MT Issuing one branch request to another branch to pay specified amount of money to the specified payee though Mail. Others activities are as like as TT.

3.1.5 Clearing Section

The amount of Cheques, Pay Order (P.O), and Demand Draft (D.D) Collection from other banks on behalf of its customer is a basic function of a Clearing Department. One P.O is involved in clearing section of Dilkusha branch. Clearing: Clearing is a system by which a bank can collect customers fund from one bank to another through clearing house. Clearing House: Clearing House is a place where the representatives of different banks get together to receive and deliver Cheques with another banks.

Normally, Bangladesh Bank performs the Clearing House in Dhaka, Chittagong, Rajshahi, Khulna & Bogra. Where there is no branch of Bangladesh Bank, Sonali bank arranges this function. Member of Clearing House: UBL is a scheduled Bank. According to the Article 37(2) of Bangladesh Bank Order, 1972, the banks which are the member of the clearinghouse are called as Scheduled Banks. The scheduled banks clear the cheque drawn upon one another through the clearing house. The instruments that are not in the clearing area sent to their destination by using a SC (Short credit) number though mail.

Procedures of clearing follows by Dilkusha branch Crossing of the cheque. Computer posting of the cheque. Clearing seal & proper endorsement of the cheque. Separation of cheque from deposit slip. Sorting of cheque 1st bank wise and then on branch wise. Computer print 1st branch wise & then bank wise. Preparation of 1st Clearing House computer validation sheet. Examine computer validation sheet with the deposit slip to justify the computer posting Copy of computer posting in the floppy disk. Sent to the local office.

3.1.6 Accounts Section

Accounts department is very important department of general banking. There are many transactions are made in every day in bank. Here the transactions are recording properly. If there is any fault made then the accounts section may check it and do action against it. To avoid these mishaps, the bank provides accounts department; whose function is to check the mistakes in passing vouchers or wrong entries or fraud or forgery. If any discrepancy regarding transaction arises the department report to concerned department. This department of Dilkusha branch does following works: Packing of the correct vouchers according to the debit voucher and the credit voucher Recording the transactions in the cashbook. Recording the transactions in general and subsidiary ledger Preparing the daily position of the branch comprising of deposit and cash Preparing the daily Statement of Affairs showing all the assets and liability of the branch as per General Ledger and Subsidiary Ledger separately

Making payment of all the expenses of the branch

Recording inters branch fund transfer and providing accounting treatment in this regard. Preparing the monthly salary statements for the employees Preparing the weekly position for the branch which is sent to the Head Office to maintain Cash Reserve Requirement (C.R.R) Make charges for different types of duties Preparing the budget for the branch by fixing the target regarding profit and deposit so as to take necessary steps to generate and mobilize deposit. Checking of Transaction List Recording of the vouchers in the Voucher Register

3.1.7 Computer Section

Computer department gives logistics supports to the banks. One grade-1 officer does those activities for the branch. Flowing tasks are done by the department: Prepare various types of document. It helps to prepare daily, weakly, monthly and yearly statement of the bank. It helps clearing to post cheques and print that. It helps the customer by giving financial statement of their account. Various types of letters are drafted by that section.

3.2.0 Loans and advances

Loans and advances comprise the most important asset as well as the primary sources of earning of the bank. On the other hand, loan is also the major source of risk for the bank management. A prudent bank management should always try to make an appropriate balance between return and risk involved with the loan portfolio and unregulated bank might be fraught with unregulated risk for maximizing its potential return. In such a situation, bank might find itself in a serious financial distress instead of improving its financial health. Consequently not only the depositors but also the general shareholders will be deprived of getting back their money from the bank.

Loans and advances mean lending made by the bank two weeks clients for earning interest. Main objective of the loans and advances is to earn profit for the bank. On an average of 75% to 80% of the banks earnings come from interest received against the loans and advances of a bank.

3.2.1 Types of Loan of UBL

Loans of UBL

CC Hypo (Cash Credit Hypo)

Continuous Loan

CC Pledge (Cash Credit Pledge)

Overdraft (Secured Overdraft)

PAD (Payment against Document)

LDBP (Local Documentary Bills Purchased)

Demand Loan

IBP (Inland Bills Purchased)

FDBP (Foreign Doc. Bills Purchased) LIM (Loan against Imported Merchandise) LTR (Loan against Trust Receipt)

UHRL (Uttara House Repairing Loan)

SBL (Small Business Loan)

Term Loan

Consumer Credit Scheme PLS (Personal Loan Scheme)

3.2.2 Loans and advance of Dilkusha branch

Uttara bank limited, dilkusha branch is situated in Dilkusha, Dhaka which is very important place of Dhaka city. It is a very big and important branch of UBL. The branch give various kinds of loan to the borrower like CC Hypo (Cash Credit Hypo), CC Pledge (Cash Credit Pledge), Overdraft (Secured Overdraft), UHRL (Uttara House Repairing Loan), SBL (Small Business Loan), PLS (Personal loan). As per the closing entries of 2006, the amount of total Deposit of Dilkusha branch is Tk 277644422.49, Loan and Advance is TK 135786606.10

Cash credit (Hypothecation): Cash credit allowed against hypothecation of goods is known as Cash Credit (HYPO) limit. Incase of hypothecation, the borrower retains the ownership and possession of goods on which charge of the lending bank is created. Charge of Uttara bank limited is 14%. The bank should take the following precaution: 01. The banker should carefully verify the stocks of hypothecated goods and their market price. 02. Periodical statement of stock duly signed by the borrower should be obtained. 03. Stocks should be duly insured against fired, burglary. 04. Bank should try obtaining sufficient collateral security. 05. The borrower should be trustworthy and prudent customer. 06. The goods are readily saleable and have good demand in the market. 07. The price of the goods, offered as security, is to be calculated as per purchase price or market price whichever is lower. 08. The price of goods is steady etc. Cash Credit (Pledge): Cash credit allowed against pledge of goods is known as Cash Credit (Pledge). In case of cash credit (pledge), the borrower pledge his goods to the Bank as Security against the credit facility. Banks retain the effective control of the pledged goods. Pledge goods may be stored in a godown of the borrower but under lock and key of the bank. Banks guards are posted to protect the godown sometimes; pledge goods are stored in Banks godown

UHRL (Uttara House Repairing Loan): In case of UHRL the borrower will get loan from the bank by giving mortgage of his property. Here the bank will charge against the amount of loan. Maximum limit of the loan is TK 25 lack. Uttara bank Ltd charges 14% interest against the amount. Bank will obtain following documentation from the borrower: 01. Photographs of borrower. 02. Commissioner Certificate\ ID card\ Passport photocopy as the identity of the borrower. 03. Photographs of the mortgage property. 04. Documentation of property (Dalil, Parcha, Khajna rasid etc.) 05. Valuation of the property. 06. Audit report of the property 07. Six months bank statement. 08. Report of CIB.

SBL (Small Business Loan) In case of SBL the borrower will get loan from the bank against his business. Here the bank will charge against the amount of loan. Maximum limit of the loan is TK 5 lack. Uttara bank Ltd charges 15% interest against the amount. Bank will obtain following documentation from the borrower: 01. Photographs of borrower. 02. Commissioner Certificate\ ID card\ Passport photocopy as the identity of the borrower. 03. Updated trade license of business. 04. Mortgage of his property. 05. Valuation of his business. 06. Six months bank statement. 07. CIB report.

3.2.3 Procedure of preparing proposal for Loan

The following procedures are followed by Dilkusha branch while preparing proposal for loan. First, borrower has to apply to UBL for their loan by filling up of a specific application form given by the bank in respect of their own status (individual/proprietorship/public/private ltd. etc.). A very efficient team of employee is working under the supervision of sales manages to help the borrower in this regard. Incase of individual loan, an applicant has to submit at least 6 month latest financial statement of their own bank account along with his photocopy of passport or ID card or any other documentation, as his personal identification. If the loan is for house repairing, then the borrower has to submit various documents of existing house as an evidence of house owner. There after, he has to submit price quotation accepted and signed by the borrower, a salary certificate given by the organization (if the borrower is a service holder) and with all other necessary documents. But in the case of business person, some excess documents are required. Borrower has to submit at least 12 months latest financial statement of their own bank account. They are also required to submit the names of all board of directors of the organization, resolution of the board, certificate of incorporation, memorandum of articles, memorandum of association, latest trade license and some other related things. After that, the applicants for loan has to fill up a CIB (Credit Information Bureau) form and must be verified by Bangladesh Bank whether the applicant has any irregularities in repayment of loan or any other credit records. After that the employees of Dilkusha branch checks all documents provided by the borrower. The following documents are checked: Application and passport size photograph: The employees of Dilkuha branch checks application and 2 or 3 copies of recent passport size photographs. Price quotation: A quotation accepted by the applicant should also be submitted to UBL and this quotation must be real, because this is also be verified, it is genuine or not. Passport/ voter ID/ office ID/ other ID: Passport, voter ID, office ID, or any other kinds of ID are also required as and evidence of the applicants ID and should be submitted by the prescribed application form.

Salary certificate: If the applicant is a service holder, then a real salary certificate, signed by his superior is also needed

Photocopy of latest trade license: If the applicant is a business person and the business is a proprietorship business, then a photocopy of latest trade license of his organization is also required. Photocopy of registered/Notarized Partnership Deed: If the business is a partnership business, then the applicant has to submit a photocopy of registered or notarized partnership deed to UBL. These deeds of the applicants business are also be verified carefully. Tax documents: Sometimes personal relevant income tax documents are also needed and should be submitted to UBL. Bank statement: Bank statement of the applicants account is very much important. The applicant has to submit latest 6 months transaction. Checking duplicity and regular liabilities with UBL: In this part of verification duplicity and regular liabilities of an applicant with UBL are also be checked. Checking proper filling up of the Application: Filling up of the application is also an important requirement

After that, Dilkusha branch sent a very efficient team for the verification. If the team is satisfied by all aspects, then they report to the branch manager. If the branch manager agrees, then he gives order for preparing proposal for loan. After getting the permission form manager the employees team prepare loan statement of Dilkusha branch. By adding all the documents, submit it to head office and zonal office.

3.2.4 Loan disbursement

Having permission form head office and completely and accurately prepare the necessary loan documents, the employee team disburses the loan to the borrowers loan account. If the borrower has no account in Dilkusha branch, then the team opens an account (Current\Savings) for the borrower. Then bank start to collect installment with regular basis and monitoring whether client pay it or not. If client tend to be defaulter, bank remind frequently by phone, sending letter and communicate with directly.

3.2.5 Calculation of Overdue Payment of Dilkusha Branch

The main problem of Dilkusha branch is overdue payment. Most of the clients are not paying their payment timely. So the branch needs to calculate the overdue payment as the requirement of head office. Normally the installment of payment is started after thee months of loan disbursement. After thee months the installment of payment is due. By that time the due payment is calculated. If client do not pay their installment, bank remind frequently by phone, sending letter and communicate with directly. After that Dilkusha branch calculate the over due payment and sent to the head office. Then head office takes necessary actions.

3.2.6 Problems with advances of Dilkusha branch

In case of advance in different project, the interest rate is too high Maximum parties have no financial strength. In terms of law and order situation sometime it is very difficult for the bank to liquidate the collateral when the party is unable to pay the debt. Most of the time parties are creating some sort of pressure to get the loan. There are some mortgage problem such as, acquisition and proprietorship, problem of asset. In the advance department they have the shortage of skilled manpower.

3.2.7 Different interest rate of UBL (Dilkusha branch):

SN 01 02 03 04 05

Loans Cash Credit (CC) Personal Loan Small Business loan Over draft Uttara House Repairing Loan

Interest rate (%) 12 14 15 15 14

3.2.8 Loans and advance of Dilkusha branch as per closing entries of 2006
Loans Cash credit Special credit Loan against Trust Receipt Payment Against Document (PAD) Total Amount (TK) 3,69,94,763.13 6,96,78,961.00 1,89,24,288.00 1,01,88,594.00 13,57,86,606.10 Percentage (%) 27.25 51.31 13.94 7.50 100

27.25% 7.50% 13.94

Cash Credit (CC) Special Credit Loan against Trust Receipt Payment Against Document (PAD)

51.31%

4.0 Findings:
From overall study some problems have been identified. Those are as follows:

Problems regarding General Banking: UBL follows traditional (manual) banking system for general banking. The banking sector is partly computerized. The services of the bank are very much limited. The data base system is not computerized or automated, as a result they have to transfer data form one place to another place by floppy disk. It is not very much secured, because the disk might create problem, as a result the specific task might not be successful. The general banking process is very much time consuming. For an example, if any one wants to transfer money by MT (Mail Transfer), then it will take two or three days. The clients of Dilkusha branch are very limited. Mostly two or three major corporate clients are doing their transactions.

Problems regarding Loan & Advance: UBL, Dilkusha branch mainly depends on UHRL (Uttara house repairing Loan). Most of the borrower does not pay their payment timely. Most of the clients are under graduate and unable to understand the term and conditions, as a result they fail to understand that when they have to repay the loan, even after repeating them again and again the schedule of their repayment. Every time the bank has incurred a very big bad debt because of irresponsibility of employees. Loans and advance department take a very long time to sanction a loan, as a result they are losing the clients. Some times the employees overvalued the mortgage property, As a result if the client fails to repay the loan the bank authority cannot collect even the principal money invested by the selling those assets. Some tomes CIB reports are not prepared properly.

4.1 Recommendation
Recommendation regarding General Banking: UBL should follow computerized banking system. The services should be diversified. The bank can segment the market. As a result they can spread their product as the segment demands. UBL should introduce modern banking system like Internet Banking, ATM, SMS baking, Debit\credit cards etc. The database management system should be automated; as a result UBL can do their activities more smoothly. They need to quick in their banking system; as a result they can attract customer.

Recommendation regarding Loan& Advance: The employees should take extra training for the loan and advance saction. UBL, Dilkusha branch should reduce its dependency on UHRL. The branch should give loans to other sectors. The employees should very much sincere about the valuation of mortgage property. The employees should give reminder to the borrower to pay his payment. Highly efficient employee should take responsibility for loan and advance section. CIB report should maintain properly. Documentation about loans should maintain properly.

5.0 Conclusion
Banking sector of Bangladesh consists of several nationalized and private banks. They are doing their activities and highly contribute to the national economy. Among them Uttara Bank Limited also makes significant contribution to the economy. They are performing their activities, as a result not only the bank but also the economy is benefited. The bank is performing general banking, Loan-advance, foreign exchange activities etc, as a result they are mobilizing the money and do well for the economy. Although they have some limitations in their services, they are doing tremendous job for the economy. If they can reduce their limitation and introduce new ideas, they can do better in the banking sector of Bangladesh.

6.0 Appendix
CC (hypo) CC (Pledge) SBL FDR STD TT DD PO KYC FDD : Cash credit-hypothecation : Cash credit-pledge : Small business Loan : Fixed Deposit Receipt : Short Term Deposit : Telephonic Transfer : Demand Draft : Pay Order : knowledge about your customer : Foreign Demand Draft

7.0 Bibliography

1. Websites: www.uttarabank-bd.com www.google.com 2. Text Book: Shekhar K.C. & Shekhar L. (2005-2006) Banking Theory and Practice 18th Edition, Bikash Publication House PVT LTD (New Delhi) 3. Annual report of Uttara Bank Limited 4. Closing Entries of Uttara Bank Limited, Dilkusha Branch 2006