Financial Performance Evaluation of UBL Rani Bazar Branch, Rajshahi

CHAPTER ONE
INTRODUCTION
1.1 Introduction
In the modern age economic activities have been greatly developed and
sophisticated. These activities are opening various new aspects of the
development. Banking sector is one of the basic parts of the world
economy. It is also in case of Bangladesh.
Uttara bank ltd. is a familiar member of our domestic banking sector. So
our economic development depends with sum extent on the financial
activities of Uttata bank ltd. As a part of Uttara bank Rani Bazar branch
Rajshahi is conducting its operations to improve the financial
performance of Uttara bank ltd. as well as our national economy. A
perfect evaluation of financial activities conducted by Rani Bazar branch
Rajshahi is estimated to improve its financial performance. So necessarily
we should evaluate financial performance of

Rani Bazar branch

Rajshahi. So that it can contribute remarkably to the profitability of

Uttara bank ltd.
1.2 Uttara Bank Ltd. Bangladesh in General
Uttara bank ltd. has been established since 1972 as a nationalized bank. It
is old private bank in our country. It has 200 branches. It's authorized and
paid up capital is 20 and 9.98 crore. The number of share holder of Uttara
bank ltd. is 5559 thousand. Overall it is a profitable bank.

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Financial Performance Evaluation of UBL Rani Bazar Branch, Rajshahi

1.3 Objectives of the Study

The main objectives of the study are as follows:
1. To analysis the deposit structure during 2006-2006.
2. To analysis the loan recovery position during 2002-2006.
3. To determine the cost of fund and sources of fund.
4. To measure the overall financial performance of Uttara bank ltd.
5. To analysis the outstanding loan and over due loan during2002- 2006.
6. To analysis the loan disbursement system of Uttara bank ltd.
7. To give suggestions for improving its financial

performance.

8. To search the causes of losses or low profit during 2002-2006.

9. To examine the financial management efficiency.
10.To find out the liquidity position of the bank during 2002-2006.
1.4 Statement of the Problem
Bangladesh is very developing country. Development of Bangladesh is
dependent on agriculture. Industrial development has not yet been
accented to fulfill our demand. So sufficient investment in agriculture and
industrial sector is a crying need to develop our country. Banking sector
is fully devoted to ensure the sufficient investment.
Uttara bank ltd. is an important part of banking sector in Bangladesh. It
should have remarkable contribution to our economic development. But
during a long period it is showing management in efficiency, lower
income and shortage of necessary fund.

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Financial Performance Evaluation of UBL Rani Bazar Branch, Rajshahi

For this reason, we should necessarily evaluate the financial performance

of Uttara bank ltd. Rani Bazar branch. Financial performance evaluation
of this concern as my study identifies various factors affecting the
financial performance.
1.5 Scope of the Study
Uttara bank ltd. has a greater importance to our economy. So it is very
essential to evaluate its financial performance for the improvement of its
contribution. But Uttara bank ltd. is operated with so many branches all
over the country. Because of the shortage of time money and availability
of data and information my study has been confined to only Rani Bazar
branch, Rajshahi.
This study includes the following aspects of Rani Bazar branch, Rajshahi:
I)

Loan and Advance Department of UBL Rani Bazar Branch,

Rajshahi.
II) General Banking Department of UBL Rani Bazar Branch, Rajshahi.
1.6 Limitation of Study:
I have faced some problems during my study period. The executives and
other officials were very busy. So, they could not give us enough time for
discussion about financial performance of Uttara bank ltd.
Another limitation of the study is allocated time of data collection is not
sufficient. So, collecting the whole data about the financial performance
was not possible on behalf of me.

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1.7 Plan of the Study:

Evaluation of the financial performance needs the details of various
operation conducted by the specified concern, UBL Rani Bazar branch,
Rajshahi. To accomplish my study I took the following steps:
Our study of Financial Performance Evaluation of UBL Rani Bazar
Branch, Rajshahi, is composed of six chapters. Each is expected to reveal
self explanatory systems in a systematic way.

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Financial Performance Evaluation of UBL Rani Bazar Branch, Rajshahi

CHAPTER TWO
FORMULATION AND PREPARATION
2.1 The Choice of Methods
As usually, the purpose of the research work, we have, like any other
social science subjects follow a specific methodology. The methodologies
followed in the social science research are: The historical method, the
comparative study method, the case method, the observation inference
method, the interview and survey method, the library work method, the
statistical approach method etc. Actually in practice a combination of two
or more methods are taken into consideration for designing a more
meaning and purposive study. In our present study we have also followed
a combination of three such methods i.e. the library work, the interview
and the observation methods.
2.2 The Types of Data and their Sources
Collected data for this study can be classified in the following ways
a) Primary Data
b) Secondary Data
a) Primary Data: are provided by

Junior Officer (Loan and Advance Department) Uttara Bank Ltd. Rani
Bazar Branch, Rajshahi.

Assistant General Manager of Uttara Bank Ltd. Rani Bazar Branch,

Rajshahi.

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Financial Performance Evaluation of UBL Rani Bazar Branch, Rajshahi

b) Secondary Data: These types of data have been collected from

Various Books and Journals.
Various Statistical Chart and Graphs of Uttara Bank Ltd. Rani Bazar
Branch, Rajshahi.
Annual Report of Uttara Bank Ltd. Rani Bazar Branch, Rajshahi.
2.3 Selection of the Study Years
For the purpose of evaluating the financial performance of Uttara bank
ltd. Rani Bazar branch, Rajshahi, I have selected the years 2002-2006.
This period of five years is logically appropriate to evaluate the normal
trend of financial performance. Because performance can be abnormally
affected in a single year. In this case this performance should not be
considered as the based of evaluation.
2.4 Selection of the Sample Firm
Uttara bank ltd. has 200 branches operating all over the country. As a
student of Rajshahi University it was more advantageous to me to
conduct my internship training in the Rani Bazar branch, Rajshahi, than
any other branches. I have selected this branch by considering the
following advantages:
I)

It requires minimum convince expenses.

II)

Data collection with in a shorter period.

III)

It is easy to communicate.

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2.5 Preparation of the Questionnaire

For the collection of data and other official information is requires to
prepare questionnaire. Two sets of questionnaire have been prepared. One
is for high executives and another is office staffs those are related to the
finance department of Uttara bank ltd. Rani Bazar branch, Rajshahi.
Those question paper are discussed in the next chapter.
2.6 Technique of Analysis
I have implied following techniques collect information from Uttara bank
ltd.
1) Through direct question paper: At first I made my question papers and
supplied those papers to the officers and to other employee's lf the Bank.
Then I ask them my questions and I collected information.
2) Through personal interviews: several time I personally made opendiscussion with the offers and employees about my purpose and collector
information.
3) Investigation techniques: I have also collected my necessary
information by investigating all the faculties of the bank.
4) Analysis of annual report: I have also collected my necessary
information by annual report of Uttara bank ltd.
For following these techniques my internship become, easier and there
was on complexity to get my expected result.

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Financial Performance Evaluation of UBL Rani Bazar Branch, Rajshahi

CHAPTER THREE
CONCEPTUAL FRAMEWORK
3.1 Historical Background of Uttara Bank Ltd. Bangladesh
Uttara bank ltd. was established as a nationalized bank under the
Bangladesh Banks (nationalized order) 1972 formerly known as the
Eastern Banking Corporation Ltd. which was set up and started
functioning on and from 18-01-1972 having its head office at Dhaka with
an initial deposit of less than Taka 1.00(one) crore and

with a paid up

share capital of Taka 14.21 lakh raised from the small income group of
Bangladesh and without any financial help either from the then State
Bank of Pakistan in the face of hard competition with the big and strongly
established Pakistan banks with careful planning.
The bank was enlisted as scheduled bank on and from 22-06-1965 full
fledged member of Dhaka Clearing House on and from 17-07-1965 and
had been successful in foreign exchange.
Consequent upon the amendment of Bangladesh Bank order 1972 and an
agreement dated 15th September, 1983 between the Government of the
People's Republic of Bangladesh of the one part and Uttara bank limited
of the other part, the company, i.e. Uttara bank limited acquires the entire
undertaking its business , projects, rights , powers, authorities and
privileges, its properties movable and immovable, reserve funds
investments and deposits and its borrowings, liabilities and obligation of
including all deposits, assets and liabilities have been transferred to
Uttara bank limited.
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Financial Performance Evaluation of UBL Rani Bazar Branch, Rajshahi

The Bank in origin was formed as a Limited Company when the name of
the bank was Eastern Banking Corporation Ltd.
The Eastern Banking Corporation Ltd. was the only Bengali Banking in
East Pakistan and had been nationalized as per Bangladesh Bank
(nationalization) order, 1972 and the bank took active part in the building
of the new born country especially in economic and industrial sectors.
In December 31, 2000, the authorized Capital of the bank was increased
to Tk. 200 million and was divided into 2 (two) million shares each of
Tk.100. Only Tk.5 (five) million of paid up capital amounting to Tk.100
million was paid by Bangladesh government. It is listed both in DSE
(Dhaka Stock Exchange) and CSE (Chittagong Stock Exchange).
Uttara bank conducts all traditional commercial banking. It also takes part
substantially in foreign currency and foreign trade operations. Besides
these, this banks acts as an agency of the government in the program of
collecting revenue and food. So we can state the activities of Uttara bank
in the light of three main points, namely Foreign Trade Operations
Public Utility Activities.
General Banking Activities

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Uttara Bank Ltd. Rani Bazar Branch Rajshahi

Uttara bank ltd. Rani Bazar branch Rajshahi has been operating its
business successfully in Rajshahi since 3 December, 1966.
3.2 Out Line of Uttara Bank Ltd. Bangladesh
a) Nature of Business
Uttara bank ltd offers services for all banking need of the customers.
As commercial bank it is providing a wide rang of saving and credit
products retail banking and ancillary services with the support of modern
technology and professional management including its traditional
banking business as well as export import handling and its financing.
B) Authorized Capital
The authorized capitals of the banks are Tk. 200 million.
c) Issued, Subscribe and Paid Up Capital
The issued subscribed and paid up capital of the bank is Tk. 99.8 million.
The total number of share holder is 5,549. The government of peoples
republic of Bangladesh and national institutions held 73,355 shares worth
Tk.73,35,500 and remaining 5546 private shareholders held total
9,24,969 shares worth Tk. 9,24,96,900.

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3.3 UTTARA BANK LTD AT A GLANCE: (In Crores)

Particulars
2002 2003
2004 2005
Authorized Capital
20
20
20
20
Paid Up Capital
9.98 9.98
9.98
9.98
Share Deposit A/C
9.24 9.24
9.24
9.24
Reserve Fund
.16
.16
.16
.16
Deposits
9.88 9.38
12.10 12.00
Net Profit /Loss
4.41 3.35
7.28
4.01
Number of Employees
.2446 -.2457 .1548 -.4282
A)Executive Officers
112
112
112
112
B)Officers
2084 2080
2080 279
C) Assistant Officers
288
285
290
285
D) Others
3160 3150
255
245
No. of Zonal Office
No. of Branches Office
198
198
198
198
No. of Shareholders
5559 5549
5549 5549
Sources: Official Records of UBL Rani Bazar Branch, Rajshahi.

2006
20
9.98
9.24
.16
12.15
4.65
.2361
95
283
299
263
200
5549

Graphs on Deposits and Advances of UBL Rani Bazar Branch,

Rajshahi.

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Sources: Official Records of Loan and Advance Department of UBL Rani Bazar
Branch, Rajshahi.

3.4 Organizational Structure of Uttara Bank Ltd.

Chairman
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Vice-Chairman
Director
Managing Director
Deputy Managing Director
Assistant
managing
Consultant (Credit)
General Managers
Asst. General
managers
Principal Officer
Principal Officer
Grade One Officer
Assistant Officer
3.5 Organizational Structure of Uttara Bank Ltd. Rani Bazar
Branch, Rajshahi.
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Branch Manager

Second Officer

Principal Officer (Cash)

Officer Grade One (Relationship manager)
Prob. Officer
Officer Grade Two(Cash)
Asst. Officer (General)
Asst. Officer (Cash)

Messenger
Armed Guard

CHAPTER FOUR
FINANCIAL PERFORMANCE EVALUATED
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4.1 Capital and its Sources of Uttara Bank Ltd. Bangladesh

a. Authorized Capital Tk.20 Crores.
b. Paid Up Capital Tk.9.98 Crores.
c. Reserve Tk. 20 Crores.9.98 Crores.
d. Share Deposit Tk.9.98 Crores.
4.2 Deposit Mobilization and its Objectives:
To grow saving s attitude, so that as a nation we make savings. Such
saving turned into capital. In the history of the world it is found that a
nation, whose saving is sound, can invest their saving to income
generating activities and ultimately earns more profits. In the bankers
point of view the main objectives is into earn profit. So in deposit
mobilization, a banker should keep in mind the following:a) Non interest earning account should be collected, such as current
deposit.
b) Less interest bearing account, such as saving Account, Special Notice
deposit accounts are encouraged to collect.
c) Lastly, to avoid high interests bearing account, such as fixed deposit,
deposit pension scheme etc.

4.3 Different Types of Deposit

We can classify deposits into three main categories of Rani Bazar Branch,
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a) Demand Deposit
b) Time Deposit
c) Sundry Deposit
a) Demand Deposit:b) Time Deposit:I) Fixed Deposit
II) Short Term Deposit
III) Saving Deposit
IV) Uttara Bank Special Deposit and Pension Scheme (UDPS)
c) Sundry Deposit:
a) Margin on Letter of Credit
b) Employees Contributory Provident Fund
c) Uttara Bank Employees Pension Fund
d) Miscellaneous Deposits.
The important deposits are expressed bellow:Saving Deposit (SD):- Form such kind of account is withdrawn able two
times in a week and deposit can be made in any time of the office hour.
Its interest rate is 6.5% and Tk. 50 is required to open this account.
Current Account (CA):- Form this account any amount is deposit is
deposited and withdraw able in any time of office hour. No interest is
payable on current account. Advance is sanctioned on the basis of this
account. This account is opened wit a recommendation of an account
holder of that branch by making a deposit of Tk.1000.
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Fixed Deposit Receipt (FDR):- It is opened for a specific time. Its

interest rate is from 8.25% to 9.5%. This inter rate varies on the
time/period. In this deposit any amount is deposit at a time for various
periods. In this deposit at a time for various period.
Short term deposit: - It is opened for a short time and it's inter rate is
5.5%.

4.4 Deposit Position of Uttara Bank Ltd. Rani Bazar Branch,

Rajshahi
Deposit (Up to November, 2006)
Current Deposit -3,00,50,000
Saving Deposit- 5,00,50,000
Fixed Deposit -4,00,00,000
Other Deposit- 1,50,00,500
Total Deposit- 13, 51, 00,500

(Balance)

4.5 Interest Rate of Deposit

The following table showing the various interest rates on deposit
Particulars

Rate (%)
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Saving Accounts

6.5%

Short Term Accounts

5.5%

18

Fixed Deposit
Above 3 Months Less Than 6 Months

8.25%

Above 6 Months Less Than 1 Years

8.5%

1 Year and Above to Less Than 2 Years

9%

2 Yeas and Above to Less Than 3 Years

9.25%

3 Years and Above

9.5%

4.6 Major Items of Loan Disbursement

1. Cash Credit
2. Industrial
3. Overdraft
4. Foreign Trade
5. Small and Cottage Industries Loan
6. House Loan
7. Crop. Loan
8. Live Stock Loan
9. Fishery Loan
10.Irrigation Loan
11.Agro-Based Industrial Loan
12.Poverty Elevation
13.Others.
Payment Period:
1. Short Term- Within 18 Months
2. Medium- Above 1.5 Years to Less Than 5 Years.
3. Long Term- Above 5 Years to Settlement Period.
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4.7 Loan Classification

Uttara Bank ltd. is classifying its loan in to two categories:
i ) Classified Loan
ii) Unclassified Loan
Classified Loan Condition (Up to November, 2006):
(Amount in Crore)
Particulars
Total Classified Loan :

Amount

Amount

(With Staff Loan)

Sub Standard

9.50

Doubtful

5.62

Budget

9.00

Total Un-Classified Loan

24.12

Total Outstanding

24.12

Sources: Sources: Official Records of Loan and Advance Department of UBL

Rani Bazar Branch, Rajshahi.

4.8 Remittance
Remittance means transfer of fund as requested by its (Bank) customers
and clients bank issues the following forms to make transfer of fund form
himself to other branches banks.
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1) Demand Draft (DD)

2) Telegraphic Transfer (T T )
3) Mail Transfer (MT)
4)

Call Deposit Receipt (CDR)

1) Demand Draft (DD):It is the most popular instrument of remitting fund. It is an order to pay
money drawn by one branch upon another branch of same bank for a
particular sum of money which is payable to order and demand. The
commission of DD is Tk. 10 from Tk. 10,000 and additional Tk. 1.00 for
every Thousand over.
2) Telegraphic Transfer (TT):It is the fastest means of transferring money between two branches of the
same bank. In this case the bank has responsibility to transfer money. In
the same system money is transferred by Telex machine, telegraph. There
is a code number, which is known to the managers of each branch. In this
code number the manager receives TT. T o makes sure, the receiving
manager decodes the number .upon agreeing the receiving the manager
makes arrangement to pay the proceeds of the TT to the beneficiaries.

3) Mail Transfer (MT):It is another means of remitting fund and it is similar to demand draft
(DD) except that incase of mail transfer .The customer is not provided
any papers but a receipt. The commission is same as in the case of DD.
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5) Call Deposit Receipt (CDR):It is used for payment of contractor's bill. CDR holder should have an
account in that branch. It is same in the case of DD, but it is paid in
account.

CHAPTER FIVE
ANALYSIS AND INTERPRETATION
To evaluate the financial performance of Uttara bank ltd. Rani Bazar
branch, Rajshahi, it is necessary to analyze the various loans and
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advances, targeted loans and advances which are shown in the following
Table and graphs.
Table-5.1
Statement of Loans and Advances of UBL Bangladesh Rani Bazar
Branch Rajshahi during the year 2002 to 2006.
(Amount in Crore)
Year
2002
2003
2004
2005
2006
Total
Average

Loan & Advance

Disbursement Target
3.4
3.41
3.45
3.50
4.00
17.76
3.552

Total Loan
Disbursement
3.38
3.39
3.44
3.49
3.9
17.6
3.52

Achievement
99.41%
99.41%
99.71%
99.71%
97.5%
99.09%
99.82%

Source: Official Records of Loan and Advance Department of UBL Bangladesh Rani
Bazar Branch, Rajshahi during the year 2002 to 2006.

Table-5.1 reveals that the period 2002 to 2006 the loan disbursement
target is Tk. 17.76 crore. For 2002 Tk. 3.40 crore for 2003 Tk. 3.41
crore , for 2004 Tk. 3.45 crore for 2005 Tk. 3.5 crore, for 2006 Tk. 4.00
crore respectively.

5.1 Graphical representation of targeted and actual loan disbursement

during the period 2002 to 2006.

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Source: Official Records of Loan and Advance Department of UBL Bangladesh

Rani Bazar Branch, Rajshahi during the year 2002 to 2006

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Table-5.2
Statement of Loan Recovery of UBL Bangladesh Rani Bazar Branch,
Rajshahi during the year 2002 to 2006
(Amount in crore)
year

Loan Recovery

Actual Loan

Achievement

2002
2003

Target
2.80
2.95

Recovery
2.15
2.10

76.78%
71.78%

2004

2.97

2.18

73.40%

2005

3.11

2.47

79.42%

2006

2.95

2.21

74.91%

Source: Official Records of Loan and Advance Department of UBL Bangladesh Rani
Bazar Branch, Rajshahi during the year 2002 to 2006

Table-5.2 reveals that the target of loan recovery in 2005 is highest and in
2003 it is lowest during the study period. But actual loan recovery is
highest in 2005 and lowest in 2003.

5.2 Graphical representation of target and actual loan recovery for period
of 2002 to 2006.
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Source: Official Records of Loan and Advance Department of UBL Bangladesh Rani
Bazar Branch, Rajshahi during the year 2002 to 2006.

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Table-5.3
Statement of Outstanding and Classified Loan of UBL Bangladesh Rani
Bazar Branch Rajshahi during the year 2002 to 2006
(Amount in Crore)
Year

Total
Outstanding

2002
2003
2004
2005
2006

Loan
13.25
13.18
13.24
13.25
13.15

Classified Loan
Total

Percentage of Total

8.15
7.95
8.15
8.20
8.05

Outstanding Loan
61%
60.30%
61.55%
61.55%
61.21%

Source: Official Records of Loan and Advance Department of UBL Bangladesh Rani
Bazar Branch, Rajshahi during the year 2002 to 2006.

Table- 5.3 Total outstanding loan is highest in 2002 & 2005 and lowest in
2006. On the other hand total percentage of classified loan is highest in
2004 & 2005 and lowest amount in 2003 during the study period. From
the above Table

it also seen that the percentage of classified loan is

gradually increased. As result loan disbursement capacity with other

financial power of the bank is increased.

5.3 Graphical representation of total outstanding loan and classified loan

during the period of 2002 to 2006.
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Source: Official Records of Loan and Advance Department of UBL Bangladesh Rani
Bazar Branch, Rajshahi during the year 2002 to 2006.

Table-5.4
Statement of Classified and Unclassified Loan Recovery of UBL
Bangladesh Rani Bazar Branch Rajshahi during the year 2002 to 2006 .
(Amount in Crore)
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Year

Recovery of

Recovery of

Total

2002
2003

Classified Loan
13.28
13.17

Unclassified Loan
7.78
7.94

Recovery
21.06
21.11

2004

14.16

7.16

21.32

2005

12.78

8.15

20.93

2006
Average

12.08
13.09

7.45
7.69

19.53
20.78

Source: Official Records of Loan and Advance Department of UBL Bangladesh Rani
Bazar Branch, Rajshahi during the year 2002 to 2006.

Table-5.4 reveals that the average recovery of classified loan is Tk. 13.09
crore. The average recovery of unclassified loan is Tk. 7.69 crore and
average recovery of total loan both classified and unclassified is Tk.
20.78 crore during 2002 to 2006. In 2006 recovery of classified and
unclassified loan is lowest and 2006 recovery of loan also lowest.

Table-5.5
Statement of Comparative Position of Overdue and Outstanding Loan of
UBL Bangladesh Rani Bazar Branch Rajshahi during the year 2002 to
2006

(Amount in Crore)
Outstanding Loan

Overdue Loan
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Financial Performance Evaluation of UBL Rani Bazar Branch, Rajshahi

Year

2002
2003
2004
2005
2006

Current

Change

Current

Change

Year

Compared to

Year

Compared to

Amount
13.25
13.18
13.24
13.25
13.19

Previous
Amount
.93
.71
.98
1.10
1.00

Amount
6.14
6.29
6.87
6.54
6.45

Previous
Amount
.41
.48
.53
.37
.32

%
7.01
5.38
7.40
8.30
7.58

%
6.67
7.63
7.71
6.67
4.96

Source: Official Records of Loan and Advance Department of UBL Bangladesh Rani
Bazar Branch, Rajshahi during the year 2002 to 2006

Table-5.5 reveals that the outstanding loan is highest in 2002 &2005 and
lowest in 2003 during the study period. Overdue loan is highest in 2004
and lowest in 2002.

Table-5.6
Statement of Comparative Liquidity Position of UBL Bangladesh Rani
Bazar Branch Rajshahi during the year 2002 to 2006.
(Amount in Crore)
Sl.
No.
01

Particulars
Cash in Hand

2002

Financial Year
2003
2004 2005

2006

3.40

3.50

4.80

4.00

4.60

Average
4.06

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Cash in
Bangladesh

3.2

3.21

3.45

3.50

3.60

3.39

Bank(through
Shaheb Bazar
Branch)
Source: Official Records of Loan and Advance Department of UBL Bangladesh Rani
Bazar Branch, Rajshahi during the year 2002 to 2006.

Table-5.6 reveals that the average cash in hand and average cash in
Bangladesh Bank is Tk. 4.06. From the above table we have realized that
the liquidity position of the bank has been improving gradually.

5.4 Graphical representation of item wise liquidity position of Uttara

Bank Ltd for the five years.

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Source: Official Records of Loan and Advance Department of UBL Bangladesh Rani
Bazar Branch, Rajshahi during the year 2002 to 2006.

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Table-5.7
Statement of Financial Position of UBL Bangladesh Rani Bazar Branch
Rajshahi during the year 2002 to 2006
(Amount in Crore)
Sl.
No.

Particulars

Loan Disbursement:I. Target

II. Achievement
III. Percentage
of Achievement
02
Loan Recovery:I.
Target
II.
Achievement
III.
Percentage of
Achievement
03
Outstanding Loan
04
Classified Loan

2002

Financial Year
2003
2004
2005

2006

3.50
2.80

3.73
2.95

3.89
2.80

01

80%

3.75
2.77

3.88
2.71

78.66% 79.2% 79.80% 71.97%

2.80
2.15

2.95
2.10

76%
83
13.29

71%
85
13.78

2.97
2.18

3.11
2.77

3.42
2.81

73.4% 79.42% 82.16%

87
83
86
13.32
13
14

Source: Official Records of Loan and Advance Department of UBL

Bangladesh Rani Bazar Branch, Rajshahi during the year 2002 to 2006.
Table 5.7 reveals that actual loan disbursement is increased gradually
during 2002 to 2006. Actual loan disbursement has crossed the target. So,
from the table it is realized that, the overall financial position of Uttara
Bank Ltd is in the progressive position during the study period.

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Table-5.8
Comparative Statement of Deposit of UBL Bangladesh Rani Bazar
Branch Rajshahi during the year 2002 to 2006
(Amount in Crore)
Year

Current

Change Compared to

Changing Percentage

2002
2003

Year
4.9
5.15

Previous
0.90
0.97

18.36%
18.83%

2004

5.85

1.02

18.28%

2005

6.43

1.3

20.21%

2006

6.5

1.5

23.07%

Source: Official Records of Loan and Advance Department of UBL Bangladesh Rani
Bazar Branch, Rajshahi during the year 2002 to 2006.

Table-5.8 reveals that the deposit in 2006 is higher and in 2002 is lower.
On the other hand it is also seen that the deposit position is gradually
increased during thy study period.

Table-5.9
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Statement of Comparative Statement of Income and Expenditure of UBL

Bangladesh Rani Bazar Branch Rajshahi during the year 2002 to 2006.
(Amount in Lakh)
Year

Income

Expenditure

Profit/Loss

2002
2003

48.12
49.00

47.9
48.10

0.22
0.90

2004

49.15

48.25

0.09

2005

55.31

50.79

4.52

2006
Average

59.503
52.21

55.414
50.09

4.089
1.96

Source: Official Records of Loan and Advance Department of UBL Bangladesh Rani
Bazar Branch, Rajshahi during the year 2002 to 2006.

Table-5.9 reveals that the average income, expenditure and profit/loss is

Tk. 52.21 lakh, Tk. 50.09 lakh and Tk. 1.96 lakh respectively during the
study period. Highest expenditure is 55.414 lakh in 2006 and lowest
expenditure is Tk. 47.90 lakh in 2002. Highest profit is Tk. 4.52 lakh in
2005 and lowest profit is Tk. 0.09 lakh in 2004.

5.2 Ratio Analysis of Data

Table-5.2.1
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The following table shows the current ratios of the different years from
2002 to 2006 of UBL Bangladesh Rani Bazar branch, Rajshahi.
(Amount in Crore)
Year

Current Assets

Current Liability

Current Ratio

2002
2003

6.09
6.15

4.12
4.23

1.47:1
1.45:1

2004

6.48

4.26

1.52:1

2005

6.50

4.21

1.54:1

2006
6.60
4.32
1.52:1
Source: Official Records of Loan and Advance Department of UBL
Bangladesh Rani Bazar Branch, Rajshahi during the year 2002 to 2006.
Table5.2.1 reveals that the satisfactory current ratio is 2:1 .But above
table shows that highest current ratio is 1.54:1 in 2005 and lowest current
ratio is 1.45:1 in 2003. From the above table current ratio is gradually
increased from 2002 to 2006. As a result the financial position of Uttara
bank ltd is gradually increased.

Table-5.2.2

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The following table shows the Quick ratios of the different years from
2002 to 2006 of UBL Bangladesh Rani Bazar branch, Rajshahi.
(Amount in Crore)
Year

Quick assets

Quick liability

Quick ratio

2002
2003

2.21
2.5

2.18
2.15

1.01:1
1.16:1

2004

2.9

2.67

1.08:1

2005

2.96

2.62

1.12:1

2006

3.15

2.79

1.12:1

Source: Official Records of Loan and Advance Department of UBL Bangladesh Rani
Bazar Branch, Rajshahi during the year 2002 to 2006

able-5.2.2 reveals that quick ratio of different year is satisfactory in study

period.

Table-5.2.3

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Showing the capital structure of Uttara Bank Ltd. Bangladesh

(Amount in crore)
Sl.

Particulars
2002

No.
01

Authorized Capital

02

Financial year
2003
2004

2005

2006

20

20

20

20

20

Paid Up Capital

9.98

9.98

9.98

9.98

9.98

03

Reserves

8.79

8.73

9.75

9.75

9.96

04

Proprietary found

18.15

18.71

19.73

19.73

20.01

Source: Official Records of Loan and Advance Department of UBL Bangladesh Rani
Bazar Branch, Rajshahi during the year 2002 to 2006

5.3 Conclusion
Rani Bazar branch of Uttara bank ltd. has a remarkable impact on the
regional development of the north bangle. But its operational efficiency is
not satisfactory. By considering the financial performance of this branch
it can be easily understood that the financial performance must be
improved by efficient management of its financial resources.

CHAPTER SIX
FINDINGS
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Findings
Uttara bank ltd. has highest profit during the study period 2005.
Loan recovery rate of the bank is not satisfactory.
Outstanding loan of the bank has been increasing during the study
period.
The liquidity position of this branch is satisfactory.
Over due loan situation of the bank is at dangerous position during
2002 to 2006.
Management efficiency of employee of the bank is not satisfactory.
The bank has a proper policy for loan recovery but due to lack of
implementation the present loan recovery of the bank is not
satisfactory.
Loan disbursement process of the bank is lengthy and defective.
Uttara bank ltd. has heavy classified loan.
Loan supervision system of the bank is also defective.
The financial performance has been gradually increased in the
present study period.

Conclusion
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University authority sent me to Uttara bank ltd to take some practical

training which enables me to acquire banking knowledge in practice
though it's too little.
There is no development if there is no financial facility. Banking sector is
more critical factor of economic and socio-economic development. Uttara
bank ltd plays significant role of development as well as socio-economic
development the country. It is also financing different sector as like
business, agro-based industrial units, small and cottage industries etc. For
improving the socio-economic condition of our country.
But overall financial performance of socio-economic development Uttara
Bank Ltd. is not satisfactory. The overage recovery rate of the bank is
very low. The financial solvency both long term and short term are not
fully satisfactory.
The major causes of this condition of financial performance of the bank
are weak management, in efficiency of staff, lack of proper policy, rural
poverty, natural calamities etc. All these causes made the bank as a losing
concern.
I think that these situation is removable by take some effective Steps. If
the bank could able to continue the thread of this change then it will be a
real profitable organization.
RECOMMENDATION OF THE FARTHER RESEARCH
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Uttara bank ltd. should improve the effectiveness of its present loan
distribution policy.
Supervisory activities of the bank should be increased.
The bank should take fruitful steps for its outstanding loan and
overdue loan recovery.
For improving the overall efficiency of the employee the bank it is
necessary to arrange effective training urgently.
Operating expenses of the bank should be reduced
The borrower's selection system of the bank should be developed.
The bank should arrange various effective inspiration programs for the
borrowers for refunding their loan

APPENDICES
Appendix-I
Appendix-II

Bibliography
Questionnaire

APPENDIX-I
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BIBLIOGRAPHY
BOOKS REFERENCE
M.M.Khan- Advance Accounting
Professor Shahjahan Mina-Business Finance and Financial
Management
Gokul Sinha -Accounting Theory and Management Accounting
I.M.Panday -Financial Management
M.Y Khan & P.K Jain-Financial Management Test and Problems
C.R Kothari-Research Methodology
Managerial Finance by Lowrence J. Gitman
Financial of Managerial Finance by J. Fred Weston and Eugene F.
Brigham
Financial Management and Policy by Van Horne, J.C 1976
George S. Odiorne Management by Objectives (New York: Pitman
Publishing Cor., 1965). p.v
Robert N. Anthony and James S. Reece, Management Accounting Text
and Cases, Page, 361.
Problems of Working Capital by Ram Kumar Mishra; P.8.
Fundamentals of Financial Management by James C. Van House; Fifth
edition 1984. P. 164
Working Capital Management by D.R. Methta; 1974. P.134
Cash Management. A practical Approach, World Press, 1982 by
Bhabatosh Barerjee.
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Bari, R.R., Cash Planning and Management (New Delhi, Triveni

Publications), 1968.
Beraneck , W.,Working Capitale Management (Belmont, Wadsworth)
Borown, R.G., Decision Rules for Inventory Management (New York,
Holt, Rinehart and Winston),1961
Fetter, R. B. and W.C. Dalleck, Prentice-Hall), 1961.
Foster, G., Financial Statement Analysis (Englewood Cliffs, PrenticeHall), 1961.
Foulke, R.A., Practical Financial Statement Analysis ( New York,
McGraw-Hill),1986
Hadley, G. and T. M. whitin, Analysis of Inventory Systems (England
Clifts, Prentice- Hall), 1963
Howard, L. R., Working Capital: Its Management and Control
(London, Macdonald and Events Ltd.), 1963.
Jaedike, R.k. and R.T Sprouse, Accounting Flows: Income Funds and
Cash (England Cliffs, Prentice-Hall),1965
Johson, R.L., Financial Decision Making (Colifornia, Good year
Publishing Co.), 1973
Myer, J. N. Financial Statement Analysis (Englewood Clifffs PrenticeHall-,1970)

Articles:
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1) Annual Report of Uttara Bank Ltd 2002.

2) Annual Report of Uttara Bank Ltd 2003.
3) Annual Report of Uttara Bank Ltd 2004.
4) Annual Report of Uttara Bank Ltd 2005
5) Annual Report of Uttara Bank Ltd 2006 Up to November.

APPENDIX-II
QUESTIONNAIRE
1. What is the name and address of the bank?
2. What is the year of establishment?
3. What is the ownership?
4. Date of the starting operation?
5. What is the organization chart of the bank?
6. What is the present employee position of its bank?
7. Are there any training facilities for staff and officers?
8. Please state security position of the employee?
9. What are basis of the promotion?
10.How do you prepare your financial statement?
11.Please state the characteristics of your deposits?
12.What are the major sources of deposit?
13. Please mention the sources of your fixed capital?
14.

Please supply the statement of profit & loss of 2002 to 2006.

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