Objectives , Methodology of the Study
“To assist in bring high quality service to our customer and to participate in the growth and expansion of national economy. To set high standard of integrity and bring total satisfaction to our clients, share holders and employees. To become top most bank in the county , higher growth and profit, rendering technology driven innovative services by our dedicated team professionals.”
Objectives and goals:
- Higher personalized services .
- Customer driven focus.
- Total commitment to quality services.
- Outstanding services.
- Contribute to the economy.
- Quality of human resources.
- Commitments to its clients at each level.
- The primary objectives of this report is to fill partial requirement of BBA degree.
- Besides fulfilling the degree requirement, this internship report intends to cover a comprehensive analysis a banking activities of Barisal branch of Uttara bank.
- The report is aimed at studying and understanding the various products offered by the different department of Uttara bank to its clients as well as several activities to carried out bank objectives.
- Report also studies how Barisal branch maintain growth in competitive business.
- Findings problem in the banking procedure of different department, strength and weakness, opportunity, and threats of the Uttara branch.
- Providing possible solution that will increase bank profits and maintain growth in the market.
- Finally the report will also evaluate future prospects of the branch.
This report covers all the banking activities of Uttara bank limited Uttara branch, such as L/C opening, L/C advising. L/C negotiation, L/C confirmation, reimbursement, payment collection, loan against trust receipt, loans and advance, recovery of loans , foreign and local remittance of bank, bills receive and collections, issuing of D.D.,P.O., M.T,,T.T. as well as problems in banking process. These performance analysis of Barisal branch was carried out to determine the progress of ban k and prospect in future.
Certain method and techniques were used to collect data for this report. Both primary and secondary sources were taken as effective means of collecting data relevant for this report. survey, Questionnaire, personal conversation with top executive of the bank was the basic techniques that was employed to collect primary data from the clients , and people of the organization. Distinct Questionnaire were made one for clients another for branch people. Information about the varieties of services, customer preference of the branch, people motivation to works was collected through interview. data regarding customer bank choice, location, safety, security, service range, quality of services, banking time, customer satisfaction were also gathered through direct Questionnaire. Besides of the people motivation by management to rendered service also gathered through direct questionnaire. On the other hand secondary sources were also used to collect data regarding bank profits, deposits, import, export. publication and database within organization , annual and quarterly report, monthly statement enable me performing trend and ratio analysis on the branch. In addition information from different people, banker, personal inspection enable me appraisal management effectiveness and operational performance of the branch. Bank people and customer preference of branch were also measured through some open-ended Questionnaire.
The bank believes that communication with and feedback from its clients help it achieve its goal of providing world- class products and services. Bank regularly conducts clients satisfaction surveys make immediate accommodations and adjustments where needed. It also constantly monitors its standards, and strives to meet clients requirements.
Leadership Style on Uttara Bank Ltd. Barisal Branch, Barisal
Leadership can be defined as influence, that is, the art or process of influencing people so that they will strive willingly and enthusiastically toward the achievement of group goals.
R- Realistic/ Responsible
MANAGERIAL GRID OF Uttara Bank Ltd. Brarisal Branch
Uttara Bank Ltd Managerial Grid was develop and General Behavioral Scientist have separated the two primary concerns in organization .
Concern for Management
The managerial grid is built on two axis. One representing the production and the other representing people. Both the scales i.e. horizontal & vertical axis are treated as a scale from 1 to 9 where 1 represents the least involvement and 9 represents the most involvement.
The managerial grid diagram can be interpreted as follows:
This is called “impoverished management” Here managers make minimum effort to get the work done.
It is known as “autocratic task management”. Here managers are concerned only with developing an efficient operation who have little or no concern for people.
It is called “country-club management”in which managers have little or no concern for production but are concerned only for people.
It is known as “team management”. Here managers display in their actions the highest possible dedication both to people and to production.
This is known as “middle of the road “. Here managers have medium concern for production and for people. They obtain adequate morale and production.
Contingency Of Leadership Style
The first comprehensive contingency model for leadership was developed by Fred Fiedler. The Fiedler contingency theory proposes that effective group performance depends upon the proper match between the leader’s styles of interacting with subordinates the degree to which the situation gives control and influence to the leader. These two factors are described below:
Identifying Leadership style:
Fiedler believes a key factor in leadership success is the individual basic leadership style. So Fiedler created LPC (Least Preferred Coworker) questionnaire to find out what the basic style is. It contains 16 contrasting adjectives such as pleasant‑unpleasant, efficient-inefficient, open‑guarded, supportive‑ hostile etc.
If the LPC is described in relatively positive terms (a high LPC score) then the respondent is primarily interested in good personal relations with the co‑workers and would be relationship‑oriented.
In contrast, if the LPC is seen in relatively unfavorable terms (a low LPC score), the respondent would task‑oriented.
Defining the situation:
Fiedler has identified three contingency dimensions:
a) Leader‑member relations
b) Task structure
c) Position power
a) Leader‑member relations:
The degree of confidence, trust and respect subordinates have in their leader.
b) Task structure:
The degree to which the job assignments are procedurized i.e. structured or unstructured.
c) Position power:
The degree of influence a leader’ has over power variables such as hiring, firing, discipline, promotions and salary increases.
The next step of this theory is to evaluate the situation in term of these three contingency variables. Fiedler states that the better the leader‑member relations, the more highly structured the job and the stronger the position power, the more control or influence the leader has.
One of the most respected approaches to leadership is the path‑goal theory developed by Robert House. The essence of the theory is that its the leader’s job to assist followers in attaining their goals‑ and to provide the necessary direction and support to ensure that their goals are compatible with the overall objectives of the group or organization.
The path‑goal theory suggests that the main function of the leader is to clarify and set goals with subordinates, help them find the best path for achieving the goals and remove obstacles.
In this theory, the situational factors contributing to effective leadership include:
• The characteristics of subordinates
• The work environment
In addition, a leader behavior is categorized into four groups:
• Supportive leadership
• Participative leadership
• Instrumental / Directive leadership
• Achievement‑oriented leadership
This theory suggests that the appropriate style depends on the situation. Ambiguous & uncertain situations can be frustrating for subordinates. When subordinates are confused, then the leader may tell them what to do and show them a clear path to goals.
Characteristics of subordinates
Leader behavior OUTCOMES OR
The exhibit indicates that, Path‑goal theory proposes two classes of situational factors that moderate the leadership behavior. The key to the theory is that the leader influences the paths between behavior & goals.
Uttara Bank Ltd. Barisal Branch Barisal
Characteristics Of Organization Culture:
Innovation and risk taking: The degreeto which employees are encourage to be innovative and take risk.
Attention to detail: The degree to which the employees are expected exhibit precision, analysis, and attention detail.
Out come orientation: The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes
People orientation: the degree to which management decisions take into consideration the effect of out- comes on people within the organization.
Term orientation: The degree to which work activities are organized around term rather than individuals.
Aggressiveness: The degree to which people are aggressive and competitive rather than easygoing.
Stability: The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.
Each of these characteristics exists on a continuum from low to high appraising the organization on these seven characteristics, then, gives a composite picture the organization’s culture.
Organization Culture of Uttara Bank Ltd. Barisal Brach, Barisal.
Organization culture represents a common perception held by the organization’s members. This was made explicit when we defined culture as a system of shared meaning. We should expect, therefore, that individuals with different backgrounds or at different levels in the organization will tend to describe the organization’s culture in similar terms.
Expresses the core values that are shared by a majority of the organization members. A dominant culture expresses the core values that are shared by a majority of the organization members. When we talk about an organization’s culture, we are referring to its dominant culture.
Mini cultures within an organization, typically defined by department designations and geographical separation. Subculture tends to develop in large organization to reflect common problems, situations, or experience that member’s face. These subcultures are likely to be defined by department designations and geographical separation.
Strong versus weak culture
It has become increasingly become popular to differentiate between strong and weak cultures. The argument here is that strong cultures have a greater impact on employee behavior and are more directly related to reduce turnover.
The organization’s core values are both intensely held and widely shared. The more members who accept the core values and the greater their commitment to those values is, the stronger the culture is.
Organizational culture versus national culture
National differences that is, national cultures must be taken into account if accurate predictions are to be made about organizational behavior in different countries.
The research indicates that national culture has a greater impact on employees than does their organization’s culture.
We have alluded to organizational culture’s impact on behavior. We have also explicitly argued that a strong culture should be associated with reduced turnover. The functions that cultures perform and assess whether culture can be a liability for an organization.
Culture performs a number of functions within an organization.
First, it has a boundary defining role, that is , it creates distinctions between one organization to another organization.
Second, it conveys a sense of identity for organization members.
Third, culture facilitates the generation of commitment to something larger that one’s individual self interest.
Fourth, it enhance the stability of the social system. Culture is the social glue that helps hold the organization together by providing appropriate standards for what employees should say and do.
Finally, culture serves as a sense making and control mechanism that is of particular interest to us.
Uttara Bank Ltd. Barisal Branch Barisal Employees Learn Culture
Culture is transmitted to employees in a number of forms, the most potent being stories, rituals, material symbols, and language.
During the days when Henry ford II was chairman of the ford motor co. one would have been hard pressed to find a manager who had not heard the story about Mr. ford reminding his executives, when they got too arrogant, that “it’s my name that’s on the building.” The message was clear: Henry Ford II ran the company.
Rituals are repetitive sequences of activities that express and reinforce the key values of the organization – what goals are most important, which people are important, and which people are expendable. repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important, and which are expendable.
The headquarters of Alcoa doesn’t look like your typical head office operation. There are few individual offices, even for senior executives. It is essentially made up of cubicles, common areas, and meeting rooms. This informal corporate headquarters conveys to employees that Alcoa values openness, equality, creativity, and flexibility.
Some corporations provide their top executives with chauffeur driven limousines and, when they travel by air, unlimited use of the corporate jet. Others may not get to ride in limousines or private jets but they might still get a car and air transportation paid for by the company.
Many organizations and units within organizations use language as a way to identify members of a culture or subculture. By learning this language, members attest to their acceptance of the culture and , in so doing, help to preserve it.
The following are examples of terminology used by employees at knight Rider information, a California based data redistributors: accession number (a number assigned to each individual record in a database); KWIC (a set of key words in context); and relational operator (searching a database for names or key terms in some order).
Organizations, over time, often develop unique terms to describe equipment, offices, key personnel, suppliers, customers, or products that relate to its business.
Creating An Ethical Organizational Culture
The content and strength of a culture influences an organization’s ethical climate and the ethical behavior of its members.
An organizational culture most likely to shape high ethical standards is one that’s high in risk tolerance, low to moderate in aggressiveness, and focuses on means as well as outcomes. Managers in such a culture are supported for taking risks and innovating, are discouraged from engaging in unbridled competition, and will pay attention to how goals are achieved as well as to what goals are achieved.
A strong organizational culture will exert more influence on employees than a weak one. If the culture is strong and supports high ethical standards, it should have a very powerful and positive influence on employee behavior.
What can management do to create a more ethical culture? We suggest a combination of the following practices:
Be a visible model: employees will look to top management behavior as a benchmark for defining appropriate behavior. When senior management is seen as taking the ethical high road, it provides a positive message for all employees.
Communicate ethical expectations: Ethical ambiguities can be minimized by creating and disseminating an organizational code of ethics. It should state the organization’s primary values and the ethical rules that employees are expected to follow.
Provide ethical training: set up seminars, workshops, and similar ethical training programs. Use these training sessions to reinforce the organization’s standards of conduct; to clarify what practices are not permissible; and to address possible ethical dilemmas.
Visibly reward ethical acts and punish unethical ones: performance appraisals of managers should include a point by point evaluation of how his or her decisions measure up against the organization’s code of ethics.
Provide protective mechanisms: The organization needs to provide formal mechanisms so that employees can discuss ethical dilemmas and report unethical behavior without fear of reprimand. This might include creation of ethical counselors, ombudsmen, or ethical officers.
Creating A Customer Responsive Culture
French retailers have a well established reputation for indifference to customers. Sales people, for instance, routinely make it clear to customers that their phone conversations should not be interrupted. Just getting any help at all from a sales person can be a challenge.
Most organizations today are trying very hard to be un French like. They are attempting to create a customer responsive culture because they recognize that this is the path to customer responsive culture because they recognize that this is the path to customer loyalty and long term probability.
A review of the evidence finds that half a dozen variables are routinely evident in customer responsive cultures.
First is the type of employees themselves. Successful, service oriented organizations hire employees who are outgoing and friendly.
Second is low formalization. Service employees need to have the freedom to meet changing customer service requirements.
Third is an extension of low formalization it’s the widespread use of empowerment. Empowered employees have the decision discretion to do what’s necessary to please the customer.
Fourth are good listening skills. Employees in customer responsive cultures have the ability to listen to and understand messages sent by the customer.
Fifth is role clarity. Service employees act as “Boundary spanners” between the organization and its customers.
In summary, customer responsive cultures hire service oriented employees with good listening skills and the willingness to go beyond the constraints of their job description to do what’s necessary to please the customer. It then clarifies their roles, frees them up to meet changing customer needs by minimizing rules and regulations, and provides them with wide range of decision discretion to do their job as they see fit.
Based on the previously identified characteristics, we can suggest a number of actions that management can take if it wants to make its culture more customer responsive. These actions are designed to create employees with the competence, ability, and willingness to solve customer problems as they arise.
The place to start in building a customer responsive culture is hiring service orientation. Studies show that friendliness, enthusiasm, and attentiveness in service employees positively affect customers’ perceptions of services quality.
Training and socialization
Organizations that are trying to become more customer responsive don’t always have the option of hiring all new employees more customer focused. In such cases, the emphasis will be on training rather than hiring. This describes the dilemma that senior executives at companies such as General Motors, Shell and J.P.
Consistent with low formalization is empowering employees with the discretion to make day to day decisions about job related activities.
Leaders convey the organization’s culture through both what they say and what they do. Effective leaders in customer responsive cultures deliver by conveying a customer focused vision and demonstrating by their continual behavior that they are committed to customers.
There is an impressive amount of evidence demonstrating that behavior based performance evaluations are consistent with improved customer service. Behavior based evaluations appraise employees on the basis of how they behave or act on criteria such as effort, commitment, team work, friendliness, and the ability to solve customer problems rather than on the measurable outcomes they achieve.
Finally, if management wants employees to give good service, it has to reward good service. It needs to provide ongoing recognition to employees who have demonstrated extraordinary effort to please customers and who have been singled out by customers for going the extra mile. And it needs to make pay and promotions contingent on outstanding customer service.
SWOT analysis of Brasal branch
Every organization is composed of some internal strength and weakness and also has some external opportunity and threats in its whole life cycle. The following will briefly introduce the audience to the strength , weakness, opportunity and threats as I have explored in the past twelve weak.
Barisal branch provides its customers excellent and consistent quality in every service. It is of highest priority that customer is totally satisfied.
Branch draws its strength from the adaptability and dynamism it posses. It can quickly adapted to world class standard in terms of banking services. Branch has also adapted state of the art technology to connect with the world for better communication to integrate facilities.
Bank is financially sound backed by enormous resources base of the foreign exchange business, as a result customers feel comfortable in dealing with the bank.
All the level of the management are solely directed to maintain a culture for the betterment of quality of service and development a brand image in the market through organization wide team approach and open communication system.
State of art technology;
Branch is equipped computer technology for swift delivery of services.
Branch employees are highly trained and most competent in their own field. Bank provides their employees both in-house and out of job training.
Branch is free from the ever- disruptive power supply of public sources. The required power is generated by the bank through generator fed on diesel.
Excellent working environment
Branch provides its work force an excellent place to work in. the interior decoration was done exquisitely with the choice of soothing colors and blend of artist that is comparable to any private bank.
Barisal branch has very limited resources compared to its financial activities. There are not many people to perform most of the tasks. As a result many of the employees are burdened with extra work loads and works late hours without any overtime facilities. This might cause high employee turnover that will prove to be costly to avoid.
Problem in delivery
The branch still have not introduce “money” “personal credit “ to its clients due not proper initiation from the management . these products can easily be made available in attractive way to increase its clients base as well as its deposits status.
Government of Bangladesh has rendered its full support to this bank for a sound financial status of the country, as it is becoming one of the vital source of employment in the country. Such government will facilitates and support the long-term vision for the bank.
branch also have e-commerce facilities for its clients both in home and abroad . it will facilities wide area network in between the buyer and the bank and smooth operation to meet the desired needs with least deviation.
Merger and acquisition
The world wide trend of merger and acquisition in financial institution is causing concentration the industry and competitor are increasing in power in their respective areas.
Poor telecommunication infrastructure
Uttara bank communication technology is not so high 198 branch scattered all over Bangladesh, where as world is advancing towards e-technology.
Frequent currency devaluation
Frequent taka devaluation and foreign exchange rate fluctuations adversely effect on foreign exchange business.
Emergence of competition
Due to existence of unreserved demand in financial sector, it is expected that more financial institution will be introduce in the industry very shortly.
Values that are to be considered as guiding fact
All the activities of Uttara bank are guided based on added value for customers. These are
- Placing the interest of clients and customer first
- A continues quest for quality in everything the bank does.
- Treating everyone with respect and dignity.
- Conduct and reflects the highest standards of integrity.
- Team work from the smallest unit to enterprise as a whole.
- Being good citizen in the communities in which they live and work.
- Special care is given for big parties if complain .
What is banking services?
Banking services means any government bank, foreign or local commercial banks or any financial institutions or corporation who provide banking services through loans, bank guarantee, demand draft, pay order, T.T, MT etc. in consideration of bank charges.
Role of banking in modern economy
The role of banking in modern economy is unlimited. Banks help in capital formation, savings, investment, safely money transfer to home & abroad, provides loans & advance for various ends to clients. Specially imports and exports business are wholly depends on banks . whole development of a country depend on banking system. Bank give loans to weak industry, undertake risk of import and export , safely transfer money . Thus help in development of a country.
Banking and finance are the Centre of all economic activities
Theoretical considerations of customer banks preferences
Banking business is very competitive in a free market economy. At present there are a large number of local and foreign banks available for customer services. They are in a open competition who can attract maximum customer and gain maximum profits. Every bank wants to provides maximum customer service and a wide range of services than competitors. Banks needs of marketing strategy to survive in turbulence business environment. They have to emphasized on customer service, quality, cost of services , services delivery in a short time, modern technology, new services that are not imitated by competitors. They have to emphasis on benchmarking, TQM, A bank have to emphasis on customer choice ,preferences, attitudes in a changing environment.
A model of customer preferences of banking services depending on the following factors that are shows as follows
Statement of the problem
What should the branch do to increase its profits and maintain is growth .
What is the current satisfaction of customers to the branch service level.
What is the level of employee satisfaction to the branch.
What is the trends of branch profit, and growth.
What is the preference of the customer to the branch.
Statistical tools and techniques
Data were analysis trough different statistical techniques such as frequency distribution, chart , histogram, relative frequency distributions. Customer attitudes and preferences of bank were measured through percentage range from 0% to 100%. For future improvement of branch services customer recommendation was take on average .
This report may have some incompleteness due to some of the limitation I encountered while completing it that are mentioned below:
- one major limitation was time constraint. This report could easily have been prepared in a much broader and extensive manner with more time and space availability.
- Some essential data could not be gathered because of confidentiality concern. The raw data available in the organization database system, different reports, statement were also not organized.
- I could not visit the difference branches of Uttara bank and had to depend on Barisal branch for all information for preparing report.
- Another limitation was data gathered could not be verified for accuracy due to time limitation.
- As there are not any report, literature, publication on the past so collection of different data may not wholly representative.
- Due to use of difference of sample information may differ.
“Meeting day to day Banking”
General Banking Department usually performs a lot of important banking activities. General banking department is that department which is mostly exposed to the maximum number of bank customers. It is the introductory department of the bank to its customers. All business concerns earn a profit through selling either a product or a service. A bank does not produce any tangible product to sell but does offer a variety of financial services to its customers. The Barisal branch of UBL has all the required sections of general banking and these sections are run by manpower with high quality banking knowledge. Hence, a touch of rich customer service is prevailing in the branch.
In UBL the following departments are under general banking section:
(a) Account opening department.
(b) Local remittance department.
(c) Cash department.
(d) Clearing department.
(e) Collection department.
In the following Chapters brief discussion on the above departments are presented respectively.
(A) Account Opening Department
“Communication with the Client”
The relationship between a banker and his customer begins with the opening of an account by the former in the name of the latter. Initially all the accounts are opened with a deposit of money by the customer and hence these accounts are called deposits accounts. Banker solicits deposits from the members of the public belonging to different walks of life, engaged in numerous economic activities and having different financial status. There is one officer performing various functions in this department.
Functions of the Department
The following are the main functions performed by the department:
(i) Accepting of Deposit
(ii) Opening of Account
(iii) Check Book issue
(iv) Transfer of an Account
(v) Closing of Account
Accepting of Deposits
Deposits are life-blood of a commercial bank. Without deposits there are no businesses for the commercial banks of any nature (NCBs, PCBs or FCBs). In this branch the various types of accounts are offered to various customers, which are grouped into:
- Demand deposit account.
- Time deposit account.
Demand Deposit Account
The amount in accounts are payable on demand so it is called demand deposit account. The following accounts are under demand deposit accounts:
- Current account.
- Savings account.
- Short Notice Term Deposit (STD).
1. Current account:
This type of account is opened by both individuals and business concerns. Frequent transactions (deposits as well as withdrawal) are allowed in this type of account. A current a/c holder can draw checks on his account for any amount for any numbers of times in a day as the balance in his account permits. This account provides no interest. The minimum balance to be maintained is Tk. 2000. No new account can be opened with a check.
2. Savings Account
Individuals for savings purposes open this type of account. Current Interest rate of these accounts is 5.50 % per annum. A minimum balance of Tk. 1000 is required to be maintained in a SB account interest on SB account is calculated and accrued monthly and credited to the account half yearly. Interest calculation is made for each month on the basis of the lowest balance at credit of an account in that month. A depositor can withdraw from his SB account not more than twice a week up to an amount not exceeding 25% of the balance in the account.
3. Special Notice Term Deposit (STD):
The deposits in this account are withdrawal on prior notice varying from 7 to 29 days and 30 days or more. The interest is paid on the balance of the account. Current interest rate is 6.50% per annum.
For opening such A/C, application in the prescribed form along with a set of specimen signature duly verified by Bangladesh mission abroad or by a reputable bank of any other person known to the bank, should be obtained by the brandies. In case of persons, already maintain any F.C A/C or N.F.C.D. A/C with them, reference to that F.C A/C will serve, the purpose of introduction, the branch may verify the signature from the specimen signature and already available with them. Only one such F.C A/C can be maintained and the balance in the A/ C should not exceed $ 30.000/- or equivalent pound sterling at any one time. The A/C holder is also required to submit photocopies of passport, visa, and work permit/contract. As this is a current account no Interest is paid to the A/C holder.
Time Deposit Account
The amount in this a/c is payable only after stipulated time. The following a/cs are under time deposit a/c:
(a) Fixed Deposits which are repayable after the expiry of fixed period and are negotiable.
(b) Bearer Certificate of Deposits (BCD) ,which are repayable after expiry of fixed period
but are negotiable. These are not renewable.
(c) Non-resident Foreign Currency deposits are term deposits maturing after 1 month, 3months, 6months and 1 year. This a/c’s can be opened either in U.S. dollar or pound sterling. No interest is paid in case of premature encashment.
Fixed Deposit Account
These are deposit, which are made with the bank for a fixed period specified in advance. The band need not maintain each reserve against these deposits and therefore, bank gives high rate of interest on such deposits. A FDR is issued to the depositor acknowledging receipt of the sum of money mentioned therein. It also contains the rate of interest and the date on which the deposit will fall due for payment.
|Particulars||Rate of Interest|
|Interest Rate on Deposits:Savings DepositsSpecial Notice Deposits(STD)||5.50%6.50%|
|Fixed Deposit(Time Deposits)a) 3 (three ) Monthsb) 6 (six)Monthsc) 1(one) Year
d) 2(two) Years and above
e) 3(three) years
Table: Interest rate on deposits
Opening of Account
It includes the following stages:
1) Account opening procedure
2) Classification of customers
1) Account opening procedure
Documents needed for each Accounts Separately:
Current/Saving Deposit Accounts:
1. Savings Accounts:
1. An existing Current Account holder of the Bank,
2. Photocopy of Passport / Chairman/Conditioner Certificates.
3. Two (2) copied of Passport size photograph.
a) Name of authorized persons, designation, specimen, signature Card.
b) Trade License.
c) Passport/ Chairman Certificate.
a) Account must be opened in the name of the firm.
b) The form should describe the names and addresses of all the partners.
c) Trade License from city corp. is needed.
d) Partnership Deed.
e) Letter of authority is achieved
a) Certificate of incorporation.
b) Certificate of Commencement of Business.
c) Form XII.
d) Memorandum of Association.
e) Article of Association.
f) Power of attorney.
g) Resolution of the Board of Director s authorizing opening of an account.
Other than above mentioned common documents resolution of who will operate the account must be noted.
2) Classification of customers
It includes the following:
a) Individual (personal)
b) Proprietorship (Sole traders)
c) Partnership firms (Registered or Unregistered)
d) Joint stock Companies (Private Limited companies/Public ltd.)
e) Public Sector Corporations
f) Municipalities/Municipal Corporations /Local Bodies etc.
g) Clubs/Societies/Associations/Schools/Colleges/ Universities etc.
j) Illiterate persons
k) Constituted Attorney
l) Wage Earners.
Issue of Cheque Book
A) Issue of Fresh Check book
Fresh checkbook is issued to the account holder only against requisition on the prescribed requisition slip attached with the checkbook issued earlier, after proper verification of the signature of the account holder personally or to his duly authorized representative against proper acknowledgment.
B. Issue of Duplicate check book
Duplicate checkbook in lieu of lost one should be issued only when an A/C holder personally approaches the Bank with an application Letter of Indemnity in the prescribed Performa agreeing to indemnify the Bank for the lost checkbook. Fresh check Book in lieu of lost one should be issued after verification of the signature of the Account holder from the Specimen signature card and on realization of required Excise duty only with prior approval of manager of the branch. Check series number of the new checkbook should be recorded in ledger card signature card as usual. Series number of lost checkbook should be recorded in the stop payment register and caution should be exercised to guard against fraudulent payment.
The customer submits an application mentioning the name of the branch to which he wants the account to be transferred. His signature cards, advice of new account and all relevant documents are sent to that branch through registered post with acknowledgment the balance standing at credit in customers account is sent to the other branch through Inter Branch Credit Advice (IBCA).
Closing of Account
The following circumstances are usually considered in case of closing an account or justifying the stoppage of the operation of an account :
- Notice given by the customer himself or if the customer is desirous to close the account.
- Death of the customer.
- Customer’s insanity and insolvency.
- If the branch finds that the account is inoperative for a long period.
- If Garnishee Order is issued by the Court of Law on the bank branch.
A customer can close out his A/C at any time by submitting an application to the branch. Upon the request of a customer an account can be closed. After receiving an application from the customer to close an Account, the following procedure is followed by a banker. The customer should be asked to draw the final cheque for the amount standing to the credit of his a/c less the amount of closing and other incidental charges and surrender the unused cheque leaves. The a/c should be debited for the account closing charges etc. and an authorized officer of the Bank should destroy unused cheque leaves. In case of joint a/c the application for closing the a/c is to be signed by all the joint holders even if the A/C- is operate by either of them. The last check for withdrawal of the available balance in the A/C is to be signed by all the joint holders.
Local Remittance Department
“Banking for Common People”
UBL has its branches spread throughout the country and therefore, it serves as best mediums for remittance of funds from one place to another. This service is available to both customers and non-customers of the bank. The department, which provides the facility, is known as local remittance department.
Functions of the Local Remittance Department
The following are the main functions performed by the credit department:
(a) Issuing & Payment of Demand Draft.
(b) All related correspondence with other Branches & Banks
(c) Compliance of Audit & Inspection
(d) Balance of D.D. payable & D.D. Paid with advice
(e) Attached to Sanchaya Patra and Wage Earners Development Bonds.
(f) Payment of Incoming TT.
(g) Issuing, encashment of Pay Order and maintenance of record and proof sheet.
(h) Issuing and encashment of all kinds of Sanchaya Patras and wage Earners Development Bond.
(i) All related statements & correspondences with Bangladesh Bank & other Branches.
(j) Issuance of Local Drafts
(k) Issuing and encashment of BCD.
(l) All related correspondences.
(m) Issuing of Outgoing TT.
(n) Issuance of Local Drafts.
(o) Issuance of T.T. ICA. IBCA & IBDA.
|Name of Transaction||Transaction Code|
|Head Office Transaction||10|
|Foreign Exchange Transaction||12|
|Reversing & Cancellation||27|
Collection of Cheque
1 Up to TK. 25,000 @ .15%, Minimum TK. 10.
2 Above Tk.25,000- 1,00,000, @ .15% Minimum Tk.50.
3 Above 1,00,000-5,00,000 @ .10%, Minimum Tk.150.
4 Above 5,00,000 @ .05%, Minimum Tk.600-Maximum 1,200
Dank Charge For Issuing DD
@ .15% Minimum Tk. 25.
Cancellation of DD
Up to 1000————————-Tk.25.
Up to Tk. 1000————————Tk.10.
Cancellation of Pay order
Up to Tk. 500————–Tk.10.
Above Tk. 500————-Tk.25.
Rate of Govt. Excise Duty for a financial year( Effective from 01-07-03)
Remittance of Fund
Any one of the following methods may make remittance of funds from one place to another.
1) Telegraphic Transfer (T.T)
2) Demand Draft (D.D)
3) Pay order (P/O)
4) Telegraphic Transfer (T.T)
It is an order from the Issuing branch to the Drawee Bank /Branch for payment of a certain sum of money to the beneficiary. Telex/ Telegram sends the payment instruction and funds are paid to the beneficiary through his account maintained with the Drawee branch or through a pay order if no a/c is maintained with the drawee branch.
a) T.T Issue Process:
1. The Applicant fill up the relevant part of the prescribed Application form in triplicate duly signs the same and gives it to the Remittance Department.
2. Remittance Department will fill up the commission part meant for Bank’s use and request the Applicant to deposit necessary cash or check at the Teller’s Counter.
3. The Teller after processing the Application form, Cash or check will validate the Application form .The first copy is treated as Debit Ticket while the second copy is treated as Credit Ticket and sent to Remittance Department for further processing. The third copy is handed over to the applicant as customer’s copy.
4. Remittance Department will prepare the Telex/Telegram in appropriate form, sign it and send it to the telex Operator/Dispatch Department for transmission of the message.
5. Remittance Department will prepare the necessary advice
6. Debit Advice is sent to the client if client’s a/c is debited for the amount of T.T
7. Debit ticket is used to debit the client’s account if necessary.
8. T.T Confirmation Advice is sent to the Drawee Branch.
9. Credit Ticket (2nd copy of the Application Form) is used to credit the UBL General Accounts.
b) Accounting Entry
- Dr. Cash /client’s A/C
- Cr. UBL General A/C
- Cr. Communication.
- Cr. Commission.
c. Payment of T. T’s:
3) On receipt of T.T payment Instructions the following entries are passed by the Drawee branch if the T.T is found to be correct on verification of Test Number.
i. Dr. UBL General A/c
Cr. Remittance Awaiting Disposal- T.T Payable A/c
ii. Dr. Remittances Awaiting Disposal -T.T Payable A/c
Cr. client’s Account /P.O. A/C.
In case the beneficiary does not maintain any a/c with the Drawee branch a P.O is issued in favor of the payee and sent to his banker/local address as the case may be.
1) Every branch maintains a prescribed T.T. Payable Register. All the particulars of T.Ts are to be properly recorded in this Register duly authenticated. A separate type of T.T confirmatory advice is sent to the Drawee branch on the same day. On receipt of the T.T Confirmatory advice/ confirmation copy of Telegram from the Issuing branch, the particulars of the T.T are verified with reference to particulars already recorded in the T.T payable Register.
The Confirmatory advises are kept attached with the relative Ticket No further responding entry is required to be passed on receipt of such confirmation copy. On payment of T.T the particulars are to be incorporated in the Extracts of Responding Debit entries as usual and sent to HORC.
2) Demand Draft (D.D)
Local Draft is an instrument containing an order of the Issuing branch upon another branch known as Drawee branch, for payment of a certain sum of money to the payee or to his order on demand by the beneficiary presenting the draft itself.
a. Process of Issuing a Demand Draft:
1. Get the Application form properly filled up and signed by the applicant.
2. Complete the lower portion of the Application Form meant for Bank’s use.
3. Calculate the total Taka amount payable including Bank’s commission /charges etc.
4. If a cheque is presented for the payment of the D.D officer should get the check duly passed for payment by the competent authority and record the particulars of D.D on the back of the cheque.
5. If the purchaser desires his account with the branch to be debited for the amount of D.D the officer should get the A/C. holder’s signature verified properly, from signature card on record of the branch and debit client’s a/c for the total amount including commission/ charges etc.
6. If cash deposit is desired, request the purchaser to deposit the money at the Teller’s Counter.
7. The Teller, after processing the Application Form, Cash or Cheque, will validate the Application form.
- The first copy of the Application form is treated as Debit Ticket while the second copy is treated as Credit Ticket and sent to Remittance Department for further processing. The third copy is handed over to the Applicant as customer’s copy.
- Each branch maintains a running control serial number of their own for issuance of D. D. on each Drawee branch. This control serial number should be introduced at the beginning of each year, which will continue till the end of the year.
b. D.D Issue Register:
The Remittance Department maintains prescribed D.D Issue Register. All the required particulars of all D. Ds issued should be entered in that Register duly authenticated. Separate folios are opened for each Drawee Branch. While issuing local Drafts of TK.50, 000/- and above, branches shall put a test number in RED INK on the upper portion of the drafts so that the Drawee branch can immediately make payment of the D.D on presentation after getting the Test agreed, if otherwise found in order.
c. Issue of Duplicate Draft :
Duplicate D.D should not normally be issued unless thoroughly satisfactory evidence is produced regarding loss of a draft. If the D.D is reported lost/stolen, a duplicate draft may be issued by the Issuing branch on receipt of a written request from the purchase.
d. Cancellation of Demand Draft (DD):
The following procedure should be followed for cancellation of a D.D:
1. The purchase should submit a written request for cancellation of the D.D attaching therewith the original D.D.
2. The signature of the purchase will have to be verified from the original application form on record.
3. Manager /Sub -Manager’s prior permission is to be obtained before refunding the amount on cancellation.
4. Prescribed cancellation charge is to be recovered from the applicant and only the amount of the draft less cancellation charge should be refunded. Commission/Postage etc. charge recovered for issuing the D.D should not be refunded.
5. The D.D should be affixed with a stamp Cancelled under proper authentication and the authorized officer’s signature on the D.D should also be cancelled with Red in but in no case should be torn. The cancelled D.D should then be kept with the relevant Ticket.
6. The original entries are to be reversed giving proper narration. An IBDA for the cancelled D.D should be issued on the Drawee branch.
7. Cancellation of the D.D should also be recorded in the D.D Issue Register.
e. Payment of D.D:
1. On receipt of Credit Advice (IBCA) from the Issuing branch the following responding entries are then be passed by the Drawee branch.
Dr. UBL General A/c Branch
Cr. Remittance Awaiting Disposal D.D payable A/c
Extracts of Responding entries are to be sent to HORC on the same day.
- When a D.D is presented for payment at the paying branch its details are to be carefully examined with references to the following points:
a. Whether the draft is drawn on their branch.
b. Whether the draft is crossed or not Amount of a crossed draft is not paid in cash to the payee but to be paid to his account with a bank.
c. Two authorized officials of the Issuing branch must have signed draft. Their signatures are to be verified from specimen signature book let to be sure that the draft is genuine. The verifier should put his initials in red ink against the authorized signatures in the draft.
d. Endorsement on the back of the draft must be regular in case the draft is presented through clearing.
e. The amount of the draft should not exceed the amount protect graphed /written in red ink on the top of the draft.
f. The payee is to be properly identified in case of cash payment.
- The particulars of the draft i.e. the draft number date amount and the name of payee, should be verified from the D.D payable Register.
3. On payment the D.D is affixed with the branches Paid stamp and signatures there on are cancelled with red ink. The date of payment is recorded in the D.D payable Register necessary accounting entries are also passed and recorded in the books of Accounts
f. Accounting Entries:
Dr. Remittance Awaiting Disposal D.D payable a/c
Cr. client’s Account/Teller’s Cash.
A.. Dr. D.D paid without Advice a/c
Cr. Client’s a/c/Teller’s Cash.
B. After receiving the IBCA
I. Dr. UBL General A/c
Cr. Remittances Awaiting Disposal – D.D payable A/c
ii. Dr. Remittances Awaiting Disposal – D.D payable A/c
Cr. D.D Paid without Advice A/c.
3) Pay Order
a. Pay Order Issue Process:
For issuing a pay order the client is to submit an Application to the Remittance Department in the prescribed form (in triplicate) properly filled up and duly signed by applicant. The processing of the pay order Application form, deposit of cash/cheque at the Teller’s counter and finally issuing an order etc, are similar to those of processing of D.D. Application.
As in case of D.D each branch should use a running control serial number of their own for issuance of a pay order. This control serial number should be introduced at the beginning of each year, which will continue till the end of the year. A fresh number should be introduced at the beginning of the next calendar year and so on.
For issuing each pay Order commission at the rate prescribed by Head Office is realized from the client and credited to Income A/c as usual.
Dr. Teller’s Cash /Client’s a/c ———————————————————Debit
Cr. pay Order a/c. ———————————————————————- Credit
Cr. commission a/c. ——————————————————————–Credit
d. Refund of Pay Order:
The following procedure should be followed for refund of pay order by cancellation:
1. The purchase should submit a written request for refund of pay order by cancellation attaching therewith the original pay order.
2. The signature of the purchaser will have to be verified from the original application form on record.
3. Manager/ Sub-manager’s prior permission is to be obtained before refunding the amount of pay order cancellation.
4. Prescribed cancellation charge is to be recovered from the applicant and only the amount of the pay order less cancellation charge should be refunded. Commission recorded for issuing the pay order should not be refunded.
5. The pay order should be affixed with a stamp ”cancelled” under proper authentication and the authorized officer’s signature of the pay order should also be cancelled with RED ink but in no case should be torn. The cancelled pay order should be kept with the relevant Ticket.
- The original entries are to be reversed with proper narrations
- Cancellation of the pay Order should also be recorded in the pay order Issue Register.
“Front Office Operation”
The cash department deals with all types of negotiable instruments, cash, and other instruments and treated as a sensitive section of the bank. Now a day in modern banking cash department is also known as front office.
Functions of the Department
The following are the main functions performed by the department:
(a) Shall be responsible for all Cash & Cash Items related matters including record keeping of the information’s received regarding cash remittances
(b) Shall supervise the Cash Remittance under direct guidance of Sub-Manager
(c) Shall be responsible for any receipts and payments as per circular issued from time to time.
(d) Keeping liaison with the Bangladesh Bank, Cash department.
Cash payment of different instruments is made in the cash section. Procedure of cash payment against cheque is discussed under elaborately. Cash payment of cheque includes few steps:
- First of all the client comes to the counter with the check and give it to the officer in charge there. The officer checks whether there are two signatures on the back of the cheque and checks his balance in the computer. After that the officer will give it to the cash in charge.
- Then the cash in charge verifies the signature from the signature card and permits the officer in computer to debit the client’s account by giving posting. A posted seal with teller number is given.
- Then the cheque is given to the teller person and he after checking everything asks the drawer to give another signature on the back of the cheque.
- If the signature matches with the one given previously then the teller will make payment keeping the paying cheque with him while writing the denomination on the back of the cheque.
- Cash paid seal is given on the cheque and make entry in the payment register.
There are few things that shall be scrutinized and checked before making payments.
i. Name of the drawer
ii. Account number
iii. Specimen signature
iv. The validity of the cheque and make it sure that it is not post dated or undated.
- The amount in words and figures are same.
Cash Balance calculation
The calculation is done by the officer in charge of cash section and then manager or authorized officer will check the balance and sign in the cash balance book. The balance is maintained in the balance book. Opening balance of current day is the closing balance of the previous day. Total receive of the current day is added with the opening balance and total payment is deducted for calculating the closing balance or cash balance.
“Clearing House Operation”
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 chouse drawn upon one another through the clearinghouse. This is an arrangement by the central bank where everyday the representative of the member banks gathers to clear the chouse. Banks for credit of the proceeds to the customers’ accounts accept Chouse and other similar instruments. The bank receives many such instruments during the day from account holders. Many of these instruments are drawn payable at other banks. If they were to be presented at the drawee banks to collect the proceeds, it would be necessary to employ many messengers for the purpose. Similarly, there would be many chouse drawn on this the messengers of other banks would present bank and them at the counter. The whole process of collection and payment would involve considerable labor, delay, risk and expenditure. All the labor. Risk, delay and expenditure are substantially reduced, by the representatives of all the banks meeting at a specified time, for exchanging the instruments and arriving at the net position regarding receipt or payment. The place where the banks meet and settle their dues is called the Clearinghouse.
Functions of the Department
The following are the main functions performed by the department:
a) Pass outward instruments to the Clearing-House.
b) Pass inward instruments to respective department.
c) Return instruments incase of dishonor.
d) Prepare IBCA or IBDA for the respective branch and HO.
Accounting Entries of Clearing Department
The following entries are given if the cheques are honored,
Customer A/C ________________________Debit
UBL General A/C _________________________Credit
UBL Principal Branch clears its cheques through the Head Office as well as the cheques of other branches, because it is only permitted. The other branches send the instruments through I.B.D.A UBL Principal Branch acts as an agent in this case. For this concern branch gives the following entries,
UBL General A/C__________________Debit
If the instrument is dishonored, the instrument is returned to the concerned branch through I.B.D.A. along with the following entries, Incase of return(For Inward instrument)
UBL General A/C ____________________ Debit
Customers A/C _______________________________Credit.
In case of return(For Outward instrument)
Customer A/C _________________________Debit
UBL General A/C___________________________Credit.
In case of returning an instrument the respective officer usually looks for following reasons,
1 Account closed
2 Insufficient fund
3 Not arranged for
4 Payment stopped
5 Refer to drawer
6 Effects not cleared may be presented again
7 Amount in words and figures differs
8 Drawer’s signature differs
9 Alteration require drawer’s full signature
10 Mutilation requires drawers confirmation
11 Cheque post dated out of date
12 Date incomplete/missing
13 Payee’s endorsement require/ irregular
14 Payee’s endorsement requires bank confirmation
15 Clearing house stamp missing
16 Not drawn on UBL
17 Present through banker
If the check is dishonored due to insufficiency of funds, UBL charges TK. 50/- as penalty.
Bills & Claque Collection
Checks, drafts etc. are drown on bank located outside clearing house are sent for collection. Principal Branch collects its client’s above-mentioned instruments from other branches of UBL and branches other than UBL. In case of out ward bills for collection customers account is credited after finishing the collection processor. And in case of in ward bills customers account is debited for this purpose. So it place dual role as follows:
i) Collecting Banker
ii) Paying Banker.
There is one officer working over desk in this department.
Functions of the Department
The following are the main functions performed by the department:
a) Preparing of Outward and Inward Collection Item.
b) Inter-Branch Transfer.
c) Batch posting and checking as and when required.
d) Other works as and when require.
Applicability of Collection
Collection is done when:
(i) Paying Bank is located out side Dhaka City.
(ii) Paying Bank is other branches of UBL situated inside Dhaka City.
(i) Paying Bank is Outside Dhaka City
Collection department of Principal Branch, UBL sends outward bills for collection (OBC) to the concerned paying bank to get inter Bank Credit Advice (IBCA) from paying Bank. If the paying bank dishonors the instrument, the same is returned to principal Branch.
(ii)The Paying Bank of their Own Branches Inside Dhaka City
Collection Department sends transfer delivery item to other branches of same bank situated inside Dhaka City. Upon receiving IBCA customer’s a/c is credited.
The routine daily tasks of the Accounts Department are as follows:
1. Recording the transactions in the cashbook.
2. Recording the transactions in general and subsidiary ledger.
3. Preparing the daily position of the branch comprising of deposit and cash.
4. Preparing the daily Statement of Affairs showing all the assets and liability of the branch as per General Ledger and Subsidiary Ledger separately.
5. Making payment of all the expenses of the branch.
6. Recording inters branch fund transfer and providing accounting treatment in this regard.
7. Checking whether all the vouchers are correctly passed to ensure the conformity with the ‘Activity Report’; if otherwise making it correct by calling the respective official to rectify the voucher.
8. Recording of the vouchers in the Voucher Register.
9. Packing of the correct vouchers according to the debit voucher and the credit voucher.
The routine periodical tasks performed by the department are as follows:
1.Preparing the monthly salary statements for the employees.
2.Publishing the basic data of the branch.
3.Preparing the weekly position for the branch which is sent to the Head Office to maintain Cash Reserve Requirement (C.R.R)
4 . Preparing the monthly position for the branch which is sent to the Head Office to maintain Statutory Liquidity Requirement (S.L.R)
5. Preparing the weekly position for the branch comprising of the break up of sector wise deposit, credit etc.
6.Preparing the weekly position for the branch comprising of denomination wise statement of cash in tills. 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.
7. Preparing an ‘Extract’ which is a summary of all the transactions of the Head Office account with the branch to reconcile all the transactions held among the accounts of all the branches.
No. of clients of the branch are increases. Branch always well concern no. of clients and their service level. all the people of the branch take their seats before 15 minutes of starting works and not go out with out authority permission or clients presence. Cash received and payment are made very swift for the clients remittance ,both local and foreign , bills collection and payment are swift always cautious about customer seating arrangements, good behavior with entertainment to customer , quick issuing of D,D,T.T.P.O.,M.T. quick clearing ,forwarding , statements prepared for clients.60% of customer has reliability of its services.
Branch has achieved significant customer satisfaction through its dedicated services. Customer response regarding different factors of satisfaction are enclosed in appendix-3.
Where shows that 56% of the customer like the branch for good quality of services.
Opinion about location , decoration and surroundings of the branch; Branch has rich decoration (23%), ,surroundings of the branch also goods(37 %), customer somehow satisfied with technology, skilled people, delivery of services (35%) but customer are not feel convenience location.(5%).
Branch charge, commission, interest, other charges are also fair for customer(75%).branch has good reputation in the market(45%), and customer are confident always able on its service reliability (67%). In response of the answer of question types of service customer choice in this branch it shows that 60%, customer like foreign business services.
In response to the answer of question customer come for banking services it shows that 50% customer come at noon,58% customer come beginning and end of the months for services. so work load become much at noon, and beginning and end of the month. in res. ponse of the answer of question customer problems of the branch it shows that major problem of the branch is no parking facility for customer (70%). Few customer are not feel convenience location of the branch(25%) .in response to the answer of competitive situation of the branch it shows that branch are always better than competitor in terms of good services, quality of services, bank charges, skilled staff, friendly with customer, but has low competitive advantages in modern technology with some up to date like standard chartered, NCC, one bank and others.
Suggestion from customer for future improvement, new services, credit cards, suitable location, money automation services, ready cash, car parking facility for customers, attractive decoration, quick delivery of services.
Motivation of the Employee
Most of the employees are satisfied with management practices, incentive, bonus, working environment of the branch. But few of them has argument about working loads, working hours of the branch. They have to work late hours with out any overtime, incentive. some of them has argument about training and human development. They need training to adapt with technology that bank has introduced- new way of writing DD,MT.TT.P.O. and other advice . some of the employees express opinion about changing of the branch and improving their working environment. Most of employees are committed to work more if the authority implement new pay scale for them. In response of the questionnaire concerned with employee feelings it shows that 90% of the people feel very good in the branch 30% people dissatisfied with branch location and hygienic environment. 40% people loss their interest due to high working loads and long duration of works. 60% people are not satisfied with their present remuneration. according to them their pay scale ,incentive are not competitive. 80% people claim more increment bonus, and suitable location of the branch. 10% people says team work are not properly work here, due to management discriminate attitude towards them. 60% people recommended for modern technology, with training for improving their skills and reduce their working loads.
Major Problem In General Banking
Problem in general banking arises while issuing and responding different types of D.D, M.T, P.O. T.T, SC.LSC,D.D. IBP, D.D.P. due to different between actual amount and written amount in those botchers . this problem most repeated occur in general banking for misunderstanding of written amount or not consciously read the amount in words in advice. Another problem is while issuing and responding of M.T, T,T, same message are send from different branch. This happen due not use the seal of message confirmation by telephone .then it needs to send several message and much hazards occurs in reconciliation. Another problem occur due to not getting of advice of Mt., T,T, DD from different branch. And making schedule for reconciliation are not possible for head office. Another problem occur in clean cash when so many Boucher may attached with other categories .most serious problem is that many branch of Uttara bank have not telephone
Management efficiency of the branch
Management of the branch is very efficient. Discipline is strictly followed in all activities of the branch. Management always followed, banks norms, culture, ethics. Management immediately implement any circular from head office, Bangladesh banks, finance ministry that appropriate for them. Any types of new technology. New method of written report, submission of statement immediately implement in the branch. Branch manager always concern his duties and responsibility. Always he observe all the officers works in front of their table. In case of any types of error in the works by an officer he immediately take measure to rectify it. Always concern following of banking guidelines in all banking activities. He always concern about customer satisfactions well as entertainment of the valuable clients. in case of any complain form customer in any banking service he accept it and rectify. Always take suggestion from the clients for their future satisfaction. manager also conscious about employee satisfaction as well as their claims and argument. And try to give appropriate solution of their problem. he always conscious about building team work among them . in case of any employees absence he fill the gaps by other officers so that any official works are not pending. Manager directly observe performance of the officers and report them to the higher authority for promotion. He also concern who are non performer and take appropriate measure for them. Official discipline are strictly followed, no employees and officer cannot go out of office without permission of manager. Employees have to wear official dress ,present in their desk, until finished of the official works. In case of any disobey of official discipline immediately actions are taken regarding him. Management also concern hygienic working environment, such as pure drinking water , canteen for lunch, entertainment for the staff , neat and cleanness of the branch, toilet bath room facility, prayers place for the people. And always try to improve branch environment.
Loans and advance of Uttara branch
Categories of loans offered by the branch
- Large and medium scale industries
- Other commercial lending(jute and fertilizer)
- Small and cottage industries
- Consumer Loan
- Personal loan
a) Housing loans
c) Commercials d) Transport e) Cold storage f) Brick field g) Gold loans h) Against work orders i) Against work FDR J) Loans against sanchaypatra k) loans against WEBD, ICB, unit certificate l ) loans against life insurance policy k) Others special program
Classified loans and provision
Performance of loans recovery
|% recovered by suits||11.5%||17.06%||2.23%|
- Loans are un-recovered as these are sanctioned against improper documents.
- Loans are given as the order of direct higher authority.
- Loans is not properly utilized, loans was cautioned for one sector but used in other sector.
- Lack of sufficient interest .financial loss in business of the creditor.
- Loans are given without proper inspection of pledged assets or hypothecation.
- Loans are un-recovered due to value of the collateral assets are not properly assessed.
- Maximum loans are cash credit instead of collateral credit.
- Loans are un-recovered due to present govt. policy has lack ness to take legal action against loan defaulter.
- Loans are sanction-limited sector.
- Maximum loans are c.c./ abnormal money excess of c.c.
- Loans are sanctioned against discrepant documents/ documents are not properly examined.
- Loans are given loans are given without following Bangladesh bank B.P.R.D.
- Creditor are not available found in the country.
Credit management and recovery of classified loans
As classified loans increase provision rate, create adverse effect on investment .in order to accelerate the investment, reduce inflation and to attain target growth rate the following guideline have to be follow:
- Undertaking step for recovering of all classified money.
- Properly audit creditor financial situation, willingness of repayment of loans money, creditor sources of income property.
- Bank must taken urgent measure for recovery of loan money.
- Examining properly all documents and charges documents. And submitting to harm dept. take immediate legal action by examining the accurateness of all the documents and amended documents by the direction of head office.
- Employing well-qualified advocates for un recovered loans money collection against powerful and large amount creditor.
- Branch manager have to be concern regarding quick settlement of all suit cases , in the case date bank representative must present in the court and provide information to the competent authority.
- Strictly follow guideline of Bangladesh bank while sanction loans.
- Take accurate guarantee from the creditor so that creditor get no provision/ evasion of not pay bank due money.
- Branch must achieve annual and half yearly budget target so that amount of classified loans may be concern by higher authority and take appropriate action.
- Bank have to be set up a more strengthen R&M department. Branch manager have to be directly consult with the Deputy GM of R &M .
- Head office have to employee a former D.C. as an legal advisor in order accelerate recovery of classified loans.
- Measure must be taken all debts before they are being classified or before expiry dates that loans not be classified.
- Precaution must be taken while approval of loans proposal in H.O. must justify real situation of using loans granted loans, incase e of any discrepant document or any claim against loans must inform H.O. for not sectioning loans to that applicant.
Precaution while sanction of new loans:
- Banker must analysis borrower nature of business, experience in business, qualification, goodwill. Income sources, profit from invested money, ability to repayment of loans money.
- Before submit loans proposal banker must properly examining risk and guaranteed value from loans.
- With a view to properly assessed the proposal of the borrower banker must filled application including borrower cash flow ,personal neth worth , description of mortgage assets, assets and liability ratio and submit the proposal to H/O .
- Banker must be insure that borrower mortgage property are not pledged to other bank .
- While sanction loans above 10 lac proposal must be submitted to Bangladesh bank with details description of use of loans money.
- Lending risk must analysis before sanction Tk. 50 lac.
- Banker must inspect practically while renew of loans with a view to asses property actual market value.
Sanctions of Loans and subsequent stages:
- All security document and charges document must be properly completed.
- Banker must be ensure utilization of money so that one sources sanctioned loans may not other sources by the borrower.
- Any unwillingness of utilization of loans money by the borrower must be informed by the bank and proper legal action must be taken against him.
- Bank must rewarded and encourage those borrower who regular repayment of loans and must give preference to him for loan sanction.
- Branch must present report to Bangladesh B.R.P.D. about problem and performance of recovery of classified loans ,legal action against those borrower according to Bangladesh bank B.R.P.D. circulation.
- Branch manager must be ensure about obedience of all the above steps.
Foreign Exchange is very lucrative & profitable in modern Banking business. Its recognized as a way of generating maximum profit with low investment. In other Banking like advance needs high capital investment. But foreign exchange required comparatively low investment. In foreign business complexity is high due to rapid change in technology especially for a bank consists of so many branches dispersed in a wide region. The system is easy for a bank to control rich in capital equipped with modern technology concentrated in a small areas. Technology is necessary to prepare quick statement, getting information, preparing reports .Now technology is a turbulent in foreign exchange business. To survive in the competition a bank have to adapt with this changes. For this it will required skilled manpower, on line banking, 24- hours banking services, high capital investment . Problems arises in foreign exchange for changes in economical, and political business environmental changes of the country. Changes in exchanges rate , change in currency rate , govt. rules and regulations, create problems while dealing in foreign business. So it needs always a conscious mind for successfully dealing in foreign business.
Parties concerned with L/C:
How to open an L/C
For opening an L/C there must be a relationship between banker and customer through opening an account with the bank.
Procedures for opening a bank accounts:
- Before opening accounts clients must submit some paper
a) in case of company must submit annual financial statement
b) in case of individual must submit all types of income tax payment certificate.
There are three types of bank account.
A)savings account b)current account c)STD d)FDR
a) For opening bank account first have to fill up application form
b) Then have to use to reference who have existing relation ship with the bank or all ready maintain accounts with the bank.
c) Two copies resent attest p.p. photograph.
d) Put three specimen signature on the signature cards.
e) Write in details amount of deposits and nominee person address relation with account holders who will hold the account in the absence of clients.
f) Enclosed memorandum of associations and articles of associations along with form.
- L/C must be open through current account.
- Perquisite for opening L/C
Have to take some charge documents from the party
a)trading licensee b)chamber of commerce certificate c)last fiscal year income tax certificate
Then the importer have to submit a proposal for opening L/C along with-
- L/C application.
- License no.
- Proforma invoice.
- Parties application.
- L.c. set
- Insurance covered note.
L/C dealing officer have to properly check the Proforma invoice –description of goods along with its price, quantity, quality, sources of export country, marketability of goods, shipment dates, shipping days, bill of entry. Packing list, certificate of origin, H.S. code no. brand new.
- Certificate of tax payers from tax commissioner.
- Trade License from city commissioner .
- Certificate from import and export registration department.
- Money receipt from insurance company to reduce risk export port to import destination.
- L/C Authorization form of the bank contains IRC number, shipping period, description of goods date of l./c issues.- 1 copy for Bangladesh banks. With name and address of dealer remittance, l./c form, description of goods, inventor name, price for exchange clearance. 1- copy for custom purpose , another copy for office record. Documents needed for opening L/C are enclosed herewith appendix-4.
Nature of L/C
- Cash L/C (sight)
- Cash L/C
- Inland B/B L/C(sight)
- Foreign B/B L/C
- L/c under AID loans
- Import from EPZ B/B/L/C)
- Import from EPZ B/B/L/C) (sight)
- Import from EPZ 9CASH L/C (SIGHT)
- L/C UNDER sta.
A L/C is most suitable under following conditions
- When the importer is not well known. The exporter selling on credit may wish to have the promise of payment.
- When the importer doesn’t want to pay the exporter until it is reasonable certain that the merchandise has been shipped in good condition.
Importance of L/C
In international trade since the buyer and seller are quite distant from each other a problem often arises to make the delivery of goods and when to make the payment for the delivery. This problem is absent in home trade. But in foreign trade neither the importer nor the exporter can rely completely upon the others. L/C is an effective instrument that can solve this problem also act as a finance for the buyer. This method is a compromise between buyer and seller because it affords certain advantage to both parties. The exporter is assured of receiving payment from the issuing bank as long as its present documents in accordance with L/C. the issuing bank is obligate to honor drawing under l./c regardless of the ability or willingness to pay. Importer does not have to pay until shipment has been made and the documents presented in good order. However the importer still rely upon the exporter to ship the goods as described in the documents, since the L/C does not guarantee that the goods purchased will be those invoice and shipped. So the usual time under a L/C is when shipment has been made. While the goods are available after payment, the risk to the exporter is very little, depending on credit term, while the risk to the importer is that he has to rely on the exporter to ship goods described in the documents. Because of all the protection and benefits it can accords both exporter and importer .
The various steps involved in the operation of credit are described as follows
- The importer and exporter have contract before a L/C has been issued.
- The importer applies for a L/C from his banker known as the issuing bank. He may use his credit lines.
- The issuing bank opens the L/C that is channeled through its overseas correspondent bank, known as advising bank.
- The advising bank inform the exporter of the arrival of the credit.
- Exporter ships the goods to the to the importer or other designed place as stipulated in the L/C.
- Meanwhile the exporter also prepare his own documents and collects transport documents or other documents from relevant parties . all documents will be sent to his banker which is acting as negotiating bank.
- Negotiation of export bills occur when the banker agrees to provide him with finance. In such case he obtains payment immediately upon presentation of documents. If not the documents will be sent to the issuing bank for payment or an approval basis in the next step.
- Documents are sent to issuing banker reimbursing bank, which is a bank nominated by the issuing bank to honor reimbursement from negotiating bank for reimbursement or payment.
- Issuing bank honors to its undertaken to pay the negotiating bank on condition that the documents comply with the L/C terms and conditions.
- Issuing bank releases documents to the importer when the letter makes payment to the former or against the letter trust receipt facilities.
- The importer takes delivery of goods upon presentation of the transport (usually shipping documents) .
Parties involved in letter of credit
The applicant is the parties who generally approaches in order to issue the L/C. generally the applicant ids the exporter who reaches an agreement with the exporter before approach in the bank to issue the L/C.
The issuing bank;
The bank issuing the L/C is known as issuing bank and it is usually the bank with which the importer maintain an account. The issuing bank undertakes an absolute obligation to pay upon presentation of documents.
The advising bank:
The correspondent bank sends the L/C is commonly referred to as advising bank. The advising bank simply advises the L/C without any obligation on its part. However, the advising bank shall take reasonable care to check the apparent authenticity of the credit that it advises.
The beneficiary or exporter is the party entitled to draw payment under L/C. The Beneficiary will have to present the required documents to avail payment under L/C.
The Confirming bank:
The confirming bank confirms that the issuing bank has issued a letter of credit. The confirming directly obligated on the credit to the extent of its confirmation and by confirming it acquires the right and obligation of an issuer.
The negotiating bank;
The bank that agrees to examine the documents under the L/C and pay t5he beneficiary is called the negotiating bank. Typically, the advising bank is nominated as the negotiating bank.
Back to back L/C
Back to back L/c is mostly issued in Bangladesh. When a beneficiary receive a letter of credit which is not transferable and he cannot furnish the goods himself, he may arrange with his banker to issue a second credit which is known as back to back L/C to supplier to supply the goods.
As both L/C cover the same goods the back to back credit must be issued with identical terms to the muster L/C, except that the credit amount, unit price if any are smaller. The expiry date under the back to back credit is earlier while the latest shipment date may have to be advanced. The bank issuing back to back credit will obtain repayment through muster credit which is deposited to the issuing bank of the back to back credit. The bank must try to maintain control of the documents and hold them after payment to the supplier pending receipt of its customers invoices and present the documents itself for payment under the muster credit in favor of its customer.
Advantage and disadvantage of L/C
- An importer can assure that the exporter has complied with certain terms and condition as specified in L/C before payment.
- Importer can insist on shipment of goods within a certain time stipulated a latest shipment date.
- He can get advice from the banker according to L/C terms.
- He can ask for financial assistance from the banker.
- Protection offered by UCP500.
- Since bank deals with documents only goods may not be the same as those specified in the credit.
- Issuing bank obliged to pay even though the conditions of goods may be poor.
- L/C commission are relatively high.
Advantages for exporter
- The risk for nonpayment is lower as complies provided with l/c.
- It is a safe method through which prompt payment obtain after shipment.
- Exporter can get expertise advice from the banker.
- The exporter can get financial assistance before the buyer makes payment.
- Sometimes terms and condition cannot fulfill such as unreasonable shipment date adding on L/C the clause of “restriction of a designated vessel to be informed by L/C amendment
- The goods shipped before receiving payment and so it is not 100 percent safe.
Main business of Foreign exchange department
The primary business of foreign exchange department of Barisal branch is to make reimbursements and payments on behalf of the issuing bank. Besides acting as the correspondent bank for reimbursing bank or the payee bank, branch also advice s negotiates, and confirm letter of credits. Acting as the negotiating and confirming Barisal branch earns a commission, which is a percentage of the total L/C amount. This
Percentage varies depending on the risk of non-payment by the importer. On the other hand branch earns a flat rate fixed commission when it acts as the advising bank as well as when it authorized to make reimbursement on behalf of the issuing bank. Reimbursement made either to ACU Dollar account AMEX Calcutta, or to US$ dollar account in AMEX new York. These reimbursements contribute to a major portion revenue of foreign exchange department.
Service offered by foreign exchange department of Uttara branch
Barisal branch offered a wide services for its relation ships other bank and clients both home and aboard. these. Service are related to trade finance, international payment, investment, trading services.
- Letter of credit (L/C) negotiation
- Letter of credit (L/C) confirmation.
- Letter of credit (L/C) advising.
- Reimbursement authorizations.
- Payment instruction.
- Export bills collections.
All types of L/C money, students fees, and other charges are send to foreign country through remittance. After negotiation between importer and exporter , getting all documents, payments of goods are made to the exporter bank(advising bank)from U.S.A. Amex bank. but must be arrangement with that bank .after entering the goods in the importer country, getting bills of entry from the custom, exporter send all documents to the issuing bank. Issuing bank then judge the accurateness of these documents and calculate total due with interest , commission ,and other charges, deduct amount of margin that was prepaid while opening L/C after preparing dock statement-all the entry transaction is reported to a c-form to Bangladesh bank where total foreign currency record is maintain in commodity wise.
Problems of foreign exchange remittance
- Still many country of the world has not open exchange house like Japan, Korea, Canada , Belgium and others so clients cannot get promptly remittance.
- Every year many exporter collect cash assistance by showing false documents to Bangladesh bank. As a result much currency are go away of the country that are a major problem for import and foreign currency of the country.
- As still there Is no remittance with many countries taking this opportunities one class of broker are benefited, dollars are going away of the country , the rate of exchange of Tk. are decreases.
Solutions of cash remittance problems
- Adequate measure have been taken for quick remittance , exchange warehouse have to set in each country where Bangladeshi are available.
- Cash remittance may be a profitable sources of foreign income in th absence of others export business.
- Adequate rewards have to be given all those foreign Bangladeshi who send their money through remittance.
- Card system have to introduce opening a nostros account of each individual-then amount of cash remittance will be increases.
Suggestion for the management for future improvement
Developing team sprit-manager have to take details information regarding employees i9ncome family, no of children, where they study, personal problem, claim of works and have to give solution for them ,. So that in case of any officer absence they can running official works cooperative with others and develop team sprit in their works.
Make cautious to every employees – management have make cautious to every employees that they to work with make out, and opening their eyes and ear so that any mistake can not occur in their works.
Reducing all unnecessary charges- manager have cautious about branch profit so unnecessary charges have to reduce.
Proper utilization of branch resources- Branch has to use all resources, such as capital. Funds, deposit, loans and advances, assets, equipment properly. Manager have to use the work force properly, so that some of the employees cannot spend their time idly while others do works.
Placement of officer to reduce work loads- Management have to write letter to head office for providing them more qualified staff to increase efficiency of the branch. Modern technology- management have to take measure for arrangement of modern technology to speed up works and reduce their labor.
Q- cash or ready cash services-n – in order to tackle competition, and speed up customer branch need to introduce new services, such as ready cash, or q-cash like other private bank- to increase customer satisfaction, and no. of clients. As customer always interested about new services like ready cash that can reduce their time, cost risk, traffic jam. In ready cash system they can with draw their money from any branch where he intentioned, not need physically present that branch.
Strictly followed of business ethics
Manage have to care about following of business ethics in all the activities-not take any gift from customer- in case of offer tactfully avoid gift.
Not pending of official works- management have to cautious about not pending of works, sending report to the head office accurate time, sending advice’s, TRV to different branch to appropriate time, quickly response to audit report.
Shift the branch in suitable location
As customer feels many disturbances to come here so the branch have to be shifted in a suitable location with parking facility.
Improving working environment-
As the branch has space limitation, seating place, so management have to improve working environment. Branch need separate place for officials and customer saying prayers.
Increasing deposits- as branch deposits are comparatively low than loans and advance so branch need to take measure to increase deposit through opening new clients account
Human resources development
Management always have to emphasis on human resources development of the branch they have not rely only on few employees. Management have to take measure for employee training for future improvement of their skills.
Expanding service range
Branch should expand services range, they should introduce new service that are not copied by the competitor as well as service offered by competitor bank.
Increasing branch assets
Branch have to emphasis on increasing its own assets, it should buy own building, purchases more equipment, and other assets to reduce extra charges.
Implementation of new pascale.
As employees has strong expectation about to implement of new pay scale. it is a great expectation that new pay scale have already design for them so management should immediately implement the new scale to increase their motivation level.
Making list of non performer of the branch
Some of the employees who idly spend their time or busy other business branch need to make of those non-performer and take immediate action towards them such as suspend, demotion, transfer, fine etc.
Employee of the branch have to be followed work ethic in all official activities.
Management should always works for their client satisfaction .they should listen customer complaint and take remedies to solve these. They should take all necessary arrangement for customer satisfaction through improvement of branch environment , location, security, parking facility new service etc.
Management have to take steps to retain customer. They should build a strong relationship with their existing customer so that they cannot swift away to competitor bank. Because retention is six time important than attention of new customer.
Expanding investment base
Branch should expand investment base, they should not depend only on limited sector of investment, they should invest all profitable sector to increase their profit and maintain growth level.
Reducing bank charges where necessary
Branch should reduce charges for price sensitive customer especially who transaction high volume of business.
Being more marketing oriented
Branch have to take more marketing oriented for success in future. The should take strategic marketing plan to increase their profit and growth.
A problem service organization face is that they may be unaware of all the capabilities they have. This is due to bank intangible elements particularly human skills and aptitude. Organization fail to audit all the areas to manage the farm capability. This is because intangibility of their capability.
The particular range of services offered will be developed In response to internal needs and external influences. Customer and user perceptions of product lines can often give services marketer insight into ways in which service product mix should extended or reduced service product lines stretched or shortened.
Uttara Bank Ltd is the largest nn-government organization through out or this region. It is working mass people about aquaculture, social welfare and income generation of this region.
Leadership style process accomplished half of its organizational activities. Employees are the lifeblood of organization and leadership style are the way to motivate and maintain that.
Work mood is associated leadership style in many senses. An appropriate leadership style can bring the job satisfaction among employees.
Uttara Bank Ltd, Barisal Brach, Barisal is such non-government organization is highly concerned with those factors of Leadership style. They apply an effect ion style to implement the organizational objectives. From apply an effective style to seen that effective Leadership style bring a great and fruitful success of the organizations.