TOPICS: AN EXPERIENCE STUDY ON GENERAL

BANKING RULES & PROCEDURES OF UNITED

COMMERCIAL BANK

Submitted to
MD. TAMZIDUL ISLAM
Assistant Professor
BRAC Business School, BRAC University

Submitted By
SHAHRIAR ALI KHAN
ID: 12364062
MASTERS OF BUSINESS ADMINISTRATION
BRAC Business School
BRAC University

Date of Submission: 5TH June, 2016

Internship Report
On
United Commercial
Bank Limited
 LETTER OF TRANSMITTAL

Date: 5th June, 2016

Md. Tamzidul Islam

Assistant Professor, MBA Program

BRAC Business School

BRAC University

Subject: Submission of Internship Report

Dear Sir,

I am here by submitting my Internship Report, which is a part of the MBA Program

curriculum. It is great achievement to work under your active supervision. This report is
based on, “AN EXPERIENCE STUDY ON GENERAL BANKING RULES &
PROCEDURES OF UNITED COMMERCIAL BANK”. I have got the opportunity to work
at United Commercial Bank Limited for three months, in corporate branch Dhaka. This
project gave me both academic and practical exposures. First of all I learned about the
organizational culture of a prominent Bank in our country. Secondly, the project gave me the
opportunity to develop a network with the corporate environment.

I shall be highly obliged if you are kind enough to receive this report and provide your
valuable judgment. It would be my immense pleasure if you find this report useful and
informative to have an apparent perspective on the issue.

Sincerely Yours

Shahriar Ali Khan

Masters of Business Administration

ID: 12364062

BRAC Business School

BRAC University
 ACKNOWLEDGEMENT

As part of my internship from BRAC University I have been assigned this report to reflect
my learning and it is with great pleasure that I express my gratitude to following institutions
and individuals.Toward the starting, I would like to pay my humble appreciation to The
Almighty ALLAH for giving me the ability to work hard under pressure. Then first and
foremost I want to thank BRAC University and the BRAC Business School for enlightening
me over the period of my Masters of Business Administration. Every faculty of the BRAC
Business School receives my greatest accolade because of all their teachings which generated
an interest in me to excel. My gratitude goes to United Commercial Bank Ltd. – for selecting
me as intern out of a highly competitive environment – consequently allowing me to learn
from one of the prominent Bank in Bangladesh and from managers who are undoubtedly
experts in their fields. The learning has been paramount and immensely enlightening. At
United Commercial Bank Ltd. I had the opportunity to learn from Mohammed Faruque, EVP
and head of Branch, at UCBL. He had been extremely cordial, supportive and optimistic with
me and my efforts since the day I joined. Along with that I would also like to show my
heartfelt gratitude to all the members of the General Banking Division who have always been
very supportive towards me and encouraged me to work creatively. Last but not the least I
must render my heartfelt gratitude for Md. Tamzidul Islam, Assistant Professor of MBA
program at BRAC Business School who is also my Internship Supervisor on behalf of BRAC
University. His optimism and faith in me and my abilities gave me massive confidence in
myself and my work. Even during times when my work seemed difficult to me, I always
received proper direction after a meeting with him. My internship report itself has been
analysed and dissected scrupulously under his supervision.
 List of Abbreviation
UCB - United Commercial Bank

RM - Relationship Manager

ATM - Automated Teller Machine

EPZ -Export Processing Zone

PO - Pay Order

DD - Demand Draft

OBC - Outward bills collections

LBC - Local bills collections

FDR - Fixed Depository Receipts

DPS - Deposit pension scheme

C.D - Current Deposit Account

S.B - Savings Deposit Account

S.T.D - Short Term Deposit Account

S.N.D - Special Notice Deposit Account

S.O.D - Security over Deposit Account

C.C - Cash Credit Account

O.D - Over Draft Account

RFCD - Resident Foreign Currency Deposit Account

NFCD - Non-Resident Foreign Currency Deposit Account

FC - Foreign Currency Account

KYC - Know Your Customers

CSR - Corporate Social Responsibility

Table of Contents
Sl. Title
01 Executive Summary
02 Introduction
03 Objective of the report
Broad Objective
Specific Objective
04 Methodology
Primary Source
Secondary Sources
05 Scope
06 Limitation of the report
07 Overview of United Commercial Bank Limited (UCBL)
Vision
Mission
Core values
Slogan
08 Organogram of UCB
09 Corporate Social Responsibility
10 Product/Service offerings
11 Operations and Departments at Corporate Branch, Dhaka
Cash division
Credit division
Retail banking division
Card division
Foreign exchange division
Offshore Banking
12 Scope of General Banking
Accounting opening
Required paper documents for opening bank account
Common Documents
Salary Account
Club/Society/Trust/Charity/Association
Proprietorship
Partnership
Limited company
RFCD Account
FC Account
Required papers for student’s file
KYC form completion
Account editing and entry
Cheque book requisition process
Cheque clearing process
Inward cheque clearing process
Outward cheque clearing process
Income from this clearing process
Table of Contents
Sl. Title
Issuing pay-orders
Issuing D.D (Demand Draft)
Online transaction
Giving account information and statement to the clients
Locker Service
SMS & Internet Banking
Keeping information from transactions on ATM booths and poses
Doing FDR & different types of DPS
Features and interest rate for FDR
Features and interest for DPS
Maintaining transfer register file
13 SWOT Analysis
14 Suggestions for further improvement
15 Conclusion
16 References
17 Appendix

Table of Figures
SL. Figure
01 Figure -1: Organogram
02 Figure -2: Product/Service Offering
03 Figure -3: Different rates of FDR
EXECUTIVE SUMMARY
As part of my academic requirement and completion of my MBA program, I needed to
complete a three month period of Internship program. I chose to do my Internship at United
Commercial Bank Ltd. At UCB I was assigned to do my intern in “General Banking
Division”. It was a new concept for me and I took the opportunity to learn about as much as
possible while I was working on the division. United Commercial Bank Limited is one of the
prominent banks in Bangladesh, which started its journey in 1983. In these thirty three years
of long journey the bank has achieved trust from people by providing its services. The main
motto of the bank is to give best quality and swift service to customers. In these three months
of internship period I learn from them how to motivate customers and give quick services.
General banking division is a very important department of a bank. Relationships with
customers develop from here. In this report I describe the different functions of general
banking division. Beside this I also try to give brief description of different divisions that
work in UCB. The report also gives an idea of different products and offerings given by
United Commercial Bank Limited.

The whole purpose of general banking division is to make UCBL more efficient in its own
filed. Based on the findings I have also included a few improvements that this report holds at
the end. Although, it is difficult to come to a conclusion without a proper research or survey,
I based my conclusion partially on what I though.
Introduction
To complete the academic requirement of MBA (Masters of Business Administration)
students of BRAC Business School have to complete their internship to gather practical
experience by working professionally. This experience helps the students to know how to
deal with the practical job related responsibilities. Inters are generally placed according to
their major subject or concentrated area to gather knowledge. As a student of finance I was
authorized to make a report on “An Experience Study on General Banking Rules &
Procedures of UCB”.

Objective of the report

Broad Objective
To get an overall idea about the banking system of United Commercial Bank.
To get an idea about the functions of general banking division of United Commercial
Bank.
Specific Objective:
To know the General banking system of United Commercial Bank.
To present my observation and suggestion to the bank.

Methodology
This report contains both primary and secondary sources. The sources that have been used to
gather and collect data is given below-

Primary Source
Personal interview
Observation
Secondary Sources
Annual Report of United Commercial Bank 2015
Brochures of United Commercial Bank Limited
Newspaper
Web site

Scope
To prepare this report I did not go to other branches of United Commercial Bank. I prepare
this report based on the information given by my supervisor and other employees in the bank.

Limitation of the report

It was a great opportunity for me to work in United Commercial Bank limited and a make a
report on the general banking process of it but there were surely some limitations while
making this report. They are -

Getting the information and interpreting it, on the basis of my understanding and then
implementing it.
 It is a very big and busy branch so the bank employees are so busy all the time so they
could not help me much to interpret the information.
Besides all these “Time constraint” is another problem for which many aspects of the
bank are dropped in this report.

Overview of United Commercial Bank Limited (UCBL)

United Commercial Bank Limited (UCBL) is a Bangladesh based financial institution that
provides banking services. The services include personal and corporate banking, loans, credit
cards, online banking and money transfer services. The bank operates in Bangladesh and its
head quarter is in Dhaka. With its firm commitment to the economic development of the
country, the Bank has already made a distinct mark in the area of Private Sector Banking
through personalized service, innovative practices, dynamic approach and efficient
Management. The Bank, aiming to play a leading role in the economic activities of the
country, is firmly engaged in the development of trade, commerce and industry thorough a
creative credit policy.

UCB Sponsored by some dynamic and reputed entrepreneurs and eminent industrialists of the
country and also participated by the Government, UCB started its operation in mid-1983 and
has since been able to establish one of the largest networks of 158 branches among the first
generation banks in the private sector.

The Bank has its in different and diverse segments of banking like Personal Banking, SME
Banking, Corporate Banking, NRB Banking, IMPERIAL, Off-shore Banking, and
Remittance etc. United Commercial Bank has lengthened its arena by diversion among
different segments of banking like:

Personal Banking: Personal Banking is a mass-market banking where customers

use all banking services from local branches of larger commercial banks. Services
include personal loans, opening and checking different account, issuing debit or
credit cards etc.
SME Banking: Small and medium enterprise banking works for creating jobs for
low income people. They help increasing economic growth, social stability, and
they contribute to the development of a dynamic private sector. Bank also assess
and monitor business loans, managing business financing risks, pricing products
and working for further development of SME.
Corporate Banking: Corporate banking, also known as business banking, refers to
the aspect of banking that deals with corporate customers. It is also the source of
regular write-downs for loans that have sourced. Its Corporate banking service
consists of simple business of issuing loans to more complex matters, such as
helping minimize taxes paid by overseas subsidiaries, managing changes in
foreign exchange rates or working out the details of financing packages necessary
for the construction of a new office, plant or other facility.
NRB Banking: It is a banking service for Non-Resident Bangladeshi. Two types
of banking facility are offered by UCB right now UCB NRB Saving and UCB
 NRB DPS Plus. Eligibility for these sorts of account is customer must be a non-
resident Bangladeshi and have to be over eighteen years old and minimum
opening balance is Tk.25, 000.
IMPERIAL: It’s a Priority Banking service for Priority Banking Customers. As a
Priority Banking customer they are looking for a premium level of service and
attention wherever they are. And UCB providing that level of premium services to
those customers. At UCB Imperial, we try to relax customers with all our efforts,
with our Imperial Hospitality. Our premium Banking services and relaxing
environment allow customers to let go off all the banking worries as they can
enjoy a luxurious banking experience. IMPERIAL banking experience is further
elevated with exclusive services like: Cosy Imperial Lounge, 24-hour Priority
Banking Service, Privileged Parking Facility, Preferential rates in retail Loan
Products, Waiver on Account Related Charges, Waiver on Credit Card Related
Charges. And minimum deposit for this kind of account is Tk. 30 lac.
The Bank also provides its clients with both incoming and outgoing remittance services. Thus
the expatriates find an easy way to send money through proper channel. The Bank, aiming to
play a leading role in the economic activities of the country, is firmly engaged in the
development of trade, commerce and industry by investing in network expansion and new
technology adoption to have competitive advantage.

With its firm commitment to the economic development of the country, the Bank has already
made a distinct mark in the realm of Private Sector Banking through personalized service,
innovative practices, dynamic approach and efficient Management. The Bank, aiming to play
a leading role in the economic activities of the country, is firmly engaged in the development
of trade, commerce and industry thorough a creative credit policy. Operations at General
Banking Division of UCBL, since its beginning has attached more importance in technology
integration. In order to retain competitive edge, investment in technology is always a top
agenda and under constant focus. Keeping the network within a reasonable limit, our strategy
is to serve the customers through capacity building across multi-delivery channels. Our past
performance gives an indication of our strength. We are better placed and poised to take our
customers through fast changing times and enable them compete more effectively in the
market they operate.

Vision
To be the bank of first choice through maximizing value of our clients, shareholders and
employees and contributing to the national economy with social commitments.

Mission
To offer financial solutions that create, manage and increase our client’s wealth while
improving the quality of life in the communities we serve.

Core values
We put customers first.
We emphasize on professional ethics.
We maintain quality at all levels.
 We believe in being a responsible corporate citizen.
We say what we believe in.
We foster participative management.
Slogan
The slogan of United Commercial Bank was “Happy Banking”. After completing thirty years
of journey it has changed its slogan and now its slogan is “United We Achieve”. Because we
believe that if we work together we can achieve everything.

Organogram of UCB

Figure -1: Organogram

Corporate Social Responsibility

United Commercial Bank Ltd. has a long history of associating itself in different spectrum of
social responsibility and there are numerous glaring instances in which they can take pride.
Over the past 30 years, UCB has rendered extensive financial assistance for benevolent
purpose. As a responsible corporate body, they have adopted CSR practices in a formal,
structured manner in line with our organizational vision to help the disadvantaged population
of our country by taking socially responsible initiatives.

The "social contract" between the corporation and the community is of critical importance for
United Commercial Bank. CSR is ingrained in their corporate culture and it is a part and
parcel of what they do. UCB has incorporated CSR activities into its core strategic business
planning and translated it into action across different areas and community of the country.
The Bank has organized its CSR activities around seven main areas:

Education
Health
Disaster Management
Environment
Sports
Art and Culture
Socio-Economic Development
Product/Service offerings:

UCB Multi-Millionaire Import Finance

UCB Money-Maximizer Export Finance
UCB Earning Plus Working Capital Finance
UCB DPS Plus Loan Syndication
UCB RMG DPS Plus Underwriting and Bridge
UCB Women’s DPS Plus Financing
Youngster’s DPS Plus Trade Finance
UCB NRB DPS Plus Industrial Finance
Imperial Banking Foreign Currency Deposit A/C
Western Union Money Transfer NFCD (Non Resident Foreign
RIA Currency Deposit Account)
TRANSFAST RFCD (Resident Foreign
Credit Card Currency Deposit Account)
One Stop Service Consumer Credit Scheme
Time Deposit Scheme Locker Service
Monthly Savings Scheme Traveller’s Cheques
Deposit Insurance Scheme Inward & Outward Remittances
Figure -2: Product/Service Offering

Operations and Departments at Corporate Branch, Dhaka

UCB Corporate Branch located in Plot - CWS- (A)-1, Road No - 34, Gulshan Avenue, Dhaka
1212. It is a very big branch and does have all banking facilities. The branch has several
division or departments which run through the instruction and control from Head office. The
divisions or departments are as follows:

Cash division
General banking division
Credit division
 Retail banking division
Card division
Foreign Exchange division
Offshore Banking
Cash division
It is the most important division of any bank as well as Corporate Branch. At first customers
and clients get service from here. All forms of cash related transitions are done here. Deposit
and withdrawal of money from account, online money transfer from one account to another
account through cash.

Credit division
Huge amount of profit is generating from this department. The main function of this
department is to give loan in condition of interest. The interest rate depends on loan amount
and duration. Credit deals with loan processing function. All of the procedures regarding
loans are dealing in this department. As it is a big branch of UCB most of the loans are
sanctions from here is Industrial and project loans as well as SME (Small and Medium
Enterprise) loans and personal loans. From this department I come to know that the
difference between advance credit loan and loan. Usually advance credit loan is given to
small and medium enterprise or business organization. In terms of advance credit at first
individual has to apply for loan amount, financial stability of the business, mortgage amount,
valuation of the given stock. Then after verification of the client by physically the bank gives
report to CIB (credit information bureau) and head office. After getting clearance from both
of the departments bank gives a limit of loan amount. This amount of money can be withdraw
by the client at a time and after that rest of the amount can be withdraw gradually. In terms of
advance credit the business entity does not has to pay monthly amount of loan payment. The
business entity has to pay the loan amount within expire period of loan at any amount of
payment. Another feature of this loan is to client can renew as well as extent the loan amount
limit if his/ her transaction profile remains good. In case of extent or increase the loan limit
client should has to increase the mortgage amount as well.

Mainly there are two differences between advance credit and loan. In case of loan individual
has to repay the loan amount monthly in a fixed period of time and it’s mainly given for
personal need, small business. Except that rest of the process is same as advance credit.

Usually there are two conditions for giving loans one hypothecation and second pledge. In
hypothecation loan clients give limit to their goods or mortgage any assets against which they
can apply for loan. Usually the mortgage amount should have to be double or near about
double to the loan amount but the mortgage amount remains to the client. On the other hand
for pledge loan client has to give the mortgage amount or asset to the bank warehouse.
Nowadays pledge loans are not given.

Retail banking division

The promotional part of bank is done by the retail banking division. The Relationship
Manager (RM) of the bank find customers and tell them about the bank product scheme,
interest rate, different types of loan scheme, its flexibility, benefit and different types of
deposit scheme. This division work is target related. Every RM has particular target
according to their position.

Card division
The operations of the card division are controlled and directed by the head office of UCB
bank. In new age of banking system most of the customers and clients are prefer for carrying
debit or credit card instead of carrying cash. UCB provides different types of visa debit and
credit cards. The function of this division is to issue new visa debit or credit cards, renew of
cards, give dispute solution of the cards and collect cards which captured by the ATM
machine during transaction. This division is also responsible for maintenances of the ATM
booths.Credit card is one type of loan giving by the bank. There are some rules and
restrictions for getting credit card. Credit card is given on the basis of customer/ client
monthly income. For businessman/woman they give emphasize on banking transition,
financial stability and for service holder salary should have to be 25000 Tk. According to the
monthly income /salary credit card limit has to be given. By the use of credit card the card
holder can purchase and can pay bills but he/ she has to pay back the money within one
month with interest, otherwise the card holder has to give overdue charge.

Foreign exchange division

One of the important businesses carried out by the commercial bank is foreign trading. The
trade among various countries falls for close link between the parties dealing in trade. The
situation calls for expertise in the field of foreign operations. The bank, which provides such
operation, is referred to as rending international banking operation. Mainly transactions with
overseas countries in respect of import, export and foreign remittance dealings under the
preview of foreign exchange department. International trade demands a flow of goods from
seller to buyer and of payment from buyer to seller. In this case the bank plays a vital role to
bridge between the buyer and seller.

Foreign exchange department of UCB is one of the most important departments among all
departments. This department handles various types of activities. Among these main three are
as follows:

Import
Export and
Foreign remittance
Offshore Banking
UCB Off-Shore Banking has been designed to meet the banking requirements of Non
Resident Customers/Enterprises especially located at the EPZ areas.

Through Off-Shore banking unit UCB

Disburses Foreign Currency denominated loans and advances to Non Resident

business entities
Accepts Foreign Currency deposits from Non Resident customers
Extends full scale trade finance services to the Non Resident customers/enterprises
from its Off-shore unit
 Extends discounting facility of Bills accepted by authorized dealers in Bangladesh as
per recent guidelines of Bangladesh Bank

Scope of General Banking

Everyday transaction of banking system is the main operation which is handled by general
banking sector. It has to meet the customers demand for cash and to receive investment from
them. I have done my three months of internship program in the general banking division at
UCBL. General banking division is another most important division in banking sector. It
plays an important role for generating profit. The main functions and operations of general
banking division are:

Account opening.
Giving entry to the account information in the software. UCB bank use PC
banking software developed by Leads Software Company for their online
transaction.
Giving requisition for cheque book.
Cheque clearing process.
Receiving inward cheques and clearing outward cheques on online.
Issuing Pay-orders.
Giving Solvency Certificate
Issuing D.D (Demand Draft).
Issuing OBC (Outward bills collections) and LBC (Local bills collections).
Online transaction.
Giving account information and statement to the clients.
Keeping information from transactions on ATM booths and poses.
Doing FDR(Fixed Depository Receipts) and different types of DPS(Deposit
pension scheme)
Foreign Remittance.
Accounting opening
One of the important functions of general banking is account opening. The numbers of different
accounts increase the amount of deposit and transaction. There are different types of accounts
with different features, those are given below:

C.D (Current Deposit) Account.

S.B (Savings Deposit) Account.
S.T.D (Short Term Deposit) Account or S.N.D (Special Notice Deposit) Account.
S.O.D (Security over Deposit) Account.
C.C (Cash Credit) Account.
O.D (Over Draft) Account.
Women Saving Account.
Student Account.
Non- Interest Account.
S.T.D, S.O.D, CC, O.D accounts are loan accounts.
Required paper documents for opening bank account
Common Documents (Introducer mandatory for all account)
Photographs – 2 copies for each account with name & attested by introducer on
the bank
Photocopy of NID/Driving License/Passport from its pages 1 to 7
Nominee photograph one copy each attested by the account holder with NID
TIN certificate (if any for personal account) byt mandatory for
proprietorship/Partnership/LTD. Company
Utility/Telephone bill copy
Legal guardian’s photo with NID ( Minor)
Salary Account
Employer certificate/Job contract
Work permit ( for foreign national//NRTA)
Club/Society/Trust/Charity/Association
Certified true copy of the Constitution/By Law/Trust Deed
Resolution
List of members with their address
Proprietorship
Photo copy of up to date trade license
Utility bill of office address
Partnership
Photo copy of up to date trade license
Partnership agreement duly notarized by Notary public/Registered
Instruction for the account operations must be mention in their agreement
Resolution
Permission from competent authority
Limited company
Certified copy or certificate of Incorporation duly attested by Chairman/MD
Certified copy of memorandum & Articles of Association duly attested by
Chairman/MD
Extract of resolution of the Board of Directors
List of Directors with their address
Photocopy of up to date trade license
Photocopy of VAT Registration
TIN certificate
Permission from competent authority
RFCD Account
Photocopy of valid passport with latest arrival seal ( arrival within one month)
Declaration of the customer for deposit the FC as per prescribed form
FC Account
Photocopy of valid passport with latest arrival seal ( arrival within one month)
Declaration of the customer for deposit the FC as per prescribed form
Work permit/Job contact/ID
Required papers for student’s file
Application ( Appendix 5/64) duly filled in
Original & photocopy of admission letters issued by the Educational Institution in
favour of the student ( such as the 1-20 in case of US institution)
Original & photocopy of estimate relating to annual tuition fee, Board & lodging,
Incidental Expenses etc. issued by the concerned Educational Institution
Attested copies of Educational Certificates of Applicant
Valid passport
Photograph of student & Financer
Solvency certificate of Financer
KYC form completion
The abbreviation of KYC is Know Your Customers. Client’s full information is given here.
That includes submitted documents for identification, amount of money to be deposited or
withdrawn in a month, earning source etc.

Account editing and entry

After filing up the account opening form it has to give entry in the software system so that the
account gets feasibility for online transaction. It also helps to keep record in the banking
system as well as from these clients can see their banking transactions and can bank
statement for different purpose.

Cheque book requisition process

Mainly there are two types of cheque books one for savings account and another for other
accounts. For getting cheque book at first one has to fill up the cheque book requisition form.
After submitting the form within four working days the books will be available for delivery.
Bank also earns money from every cheque book, for savings it charges ninety two taka and
for others it two hundred thirty.

Cheque clearing process

The main function of general banking division is cheque clearing process. It’s a software base
automated electronic fund transfer system known as BACH (Bangladesh automated clearing
house). The branches that are authorized by Bangladesh bank to be in the BACH system can
collect/transfer their money without going from one branch to another branch. It takes only
one working day for transferring/ collecting money. Through this BACH system all MIRC
cheques are get transfer from one bank to another. With the help of BACH system all the
banks inside Bangladesh can transfer and collect their money from those branches here they
don’t have an account. This process is divided into two parts and those are as follows:
Inward cheque clearing process
It’s the process in which UCB bank collects their own cheques issued by other banks. For
example: Mr. X has an account in Bank Asia at Dhaka branch but he gets a payment cheque
from a person Mr. Y who has an account in UCB bank and he gives Mr. X a UCB cheque.
This type of transaction is done through clearing. The whole process is done through online.
Now at first Bank Asia will receives the cheque from the client and will scan the cheque
issued by Mr. Y and will send the scan copy to UCB bank through online. UCB bank will
receive the scan copy and will cross-check the both particulars in the cheque and account
holder. If everything is ok such as cheque issue date, routing number, amount etc then UCB
debits the account of Mr. Y and send it to their principle branch. Then the principle branch
deals with Bangladesh bank and credit money to Bangladesh bank. Finally Bangladesh bank
credits money to Bank Asia and Bank Asia credits money to Mr. X.
Outward cheque clearing process
It’s the opposite process of inward cheque clearing process. In this process after receiving the
cheques of other banks UCB bank receives the cheques and gives entry in a register book.
After that it scenes the cheques and sends it to respective bank. Then the banks do the same
process as inward clearing.

Income from this clearing process

UCB charges money for this online clearing process. For high value which mean more than
five Lac taka it charges sixty taka and for regular value that mean less than five Lac it charges
ten taka only. Sometimes it happens that some outward cheques return because of insufficient
money. In this situation bank debits five hundred seventy five taka from the client account
who issues the cheque as a penalty.

Issuing pay-orders
Pay-order is a money transfer instrument. It cost tk.12 if pay order amount is less than tk.10, 000
but if it is over Tk. 10,000 then it will free of cost. Pay-order can be issued by depositing cash,
against cheque or directly debt account. Pay order is an instrument which can be only in-cash or
can reverse where it has been issued. For example: Mr. X issues a pay-order from UCB bank in
name of his client Mr. Y who has an account in BRAC Bank. In this case Mr. Y has to deposit the
pay-order in BRAC bank and BRAC bank can collect the through online clearing from UCB
bank. Pay-order can issue on organization, individual or bank. For issuing pay-order it’s not
necessary to have an account in the bank. Anyone can issue pay-order. The person who
doesn’t has not any bank account in UCB bank he / she can make it by depositing cash. Pay
order helps to increase deposit because usually it takes time to be in-cash. So it’s a profitable
instrument for bank.

Issuing D.D (Demand Draft)

It’s another type of money transfer instrument. For issue pay-order bank charges commission
and vat on different amount. The process of D.D is little bit complex from pay-order.
Demand draft has to be issued in the same bank but it can be on different branch within the
bank. Branch name should be mentioned while issuing D.D. after issuing D.D the branch
gives test (it’s a secret code within the bank) on that particular amount of money then credit it
to the respective branch where the client wants to issue D.D. After receiving D.D the
respondent branch re-check the test and then debit the amount.

Online transaction
Through online system client can transfer money from one account to another account within
UCB bank but any of their branch. For online transaction bank charges commission and vat
on different amount of transactions.

Giving account information and statement to the clients

With the help of online transaction customers / clients can check their account whenever they
want. From this client can see how much money they deposit and how much they withdraw.
They can also take their transaction statement when they want to apply for loan or for apply
for visa or to see their transaction at a glance. UCB bank charges three hundred forty five
taka for each statement but two statements are free of cost every year.

Locker Service
UCB provides a user friendly locker service which offers security, safety and confidentiality
of customer’s valuable belongings. Deposit of jewellery, important documents and all other
permissible valuables are accepted in locker service.

SMS & Internet Banking

One of the main goals of UCB is making the banking process more convenient. So they have
introduced “SMS & Internet banking service” to cope up with modern banking trend.
Through UCB SMS & Internet banking system, a customer can know his current account
balance, can also transfer balance to other account. Customer gets SMS each and every
transaction they made.

Keeping information from transactions on ATM booths and poses

General banking division also keeps information on ATM booths transaction. Wherever it
does through poses or cash withdraw.

Doing FDR & different types of DPS

From my internship I come to know that the main motto of general banking is to increase
profit as well as deposit. As a result UCB offers different types of deposit scheme.

Features and interest rate for FDR

FDR means Fixed Depository Receipts. From the name it can be understand that which
amount of money is to be deposited can’t be withdraw any time. If anyone withdraw before
maturity can’t be able to get the profit amount. Usually FDR’s done for the period of one
month, three months, six months, one year, twenty four years and thirty six years. The
minimum amount for doing FDR is thirty thousand taka. Different rates of FDR are given
below:

Different rates of FDR

Fixed Deposit (FDR) Retail SME Corporate

Business Govt./Semi-
Corporate Govt./Autonomous Bodies
& other & other institutions having
institutions Govt. ownership & control

for 1 month & above but below 3

months 3.50 3.50 3.50 3.50

For 3 months & above but below 6 months

i) Upto Tk. 50.00 lac 6.00 6.00 5.75 5.75
ii) Above Tk. 50.00 lac upto Tk. 5.00 cr 5.75 5.75 5.75 5.75
 iii) Above Tk. 5.00 cr upto Tk.100.00 cr 5.75 5.75 5.75 5.75
iv) Above Tk. 100.00 cr - 5.75 5.75

For 6 months & above but below 12 months

i) Upto Tk. 50.00 lac 6.00 6.00 5.75 5.75
ii) Above Tk. 50.00 lac upto Tk. 5.00 cr 5.75 5.75 5.75 5.75
iii) Above Tk. 5.00 cr upto Tk.100.00 cr 5.75 5.75 5.75 5.75
iv) Above Tk. 100.00 cr - 5.75 5.75

For 12 months s
i) Upto Tk. 50.00 lac 6.00 6.00 5.75 5.75
ii) Above Tk. 50.00 lac upto Tk. 5.00 cr 5.75 5.75 5.75 5.75
iii) Above Tk. 5.00 cr upto Tk.100.00 cr 5.75 5.75 5.75 5.75
iv) Above Tk. 100.00 cr - 5.75 5.75

For 24 months 6.00 6.00 6.00

For 36 months 6.50 6.50 6.50
Figure – 3: Different rates of FDR

Features and interest for DPS

Deposit pension scheme or DPS is a monthly savings scheme which helps to increase deposit
for bank as well as increase savings for clients who opens the deposit scheme. For DPS client
has to deposit money every month and gets depository money with interest after specific
period of maturity date. There are several types of depository schemes offered by UCB bank.

Maintaining transfer register file

UCB maintains a transfer register file where we were supposed to keep records of our
everyday transaction amounts and instruments. For example: how many FDR are got in cash,
how many cheques received and its amounts, how many par-orders are issued , which
accounts are got credited and which accounts are got debited etc. in short the whole day
transactions are registered. At the end of the day we had to sum up the both debit and credit
amounts.

SWOT Analysis
SWOT mean strength, weakness, opportunity and threat. The detailed study of an
organization’s coverage and prospective in perception of its potency, flaws, chances and risks
is called SWOT analysis. It is needed to make the current way of performance and also
predict the outlook to develop their performance compared to opponents. The organization
can learn about their current situation in the market with the help of this tool. It also plays an
important role in making modification in the planned administration of the organization.
The SOWT of UCB is given here in brief:
Strength Weakness
The bank has earned customer loyalty Limited advertising strategy
Young and hardworking workforce Insufficient brunch
Strong relationship with customers Insufficient ATM booths
Friendly Working Environment Poor marketing strategy
Maintaining good relationship with No Islamic Banking division
the new and old clients
It provides services even after the
banking hour to special clients
Well known to the market
Online Banking Services
Service First
Customer based products
Opportunities Threats
Growing market Growing competition in the market
Skilled workforce Political instability
Government Plan and regulation
Public banks offer High interest rate

Suggestions for further improvement

As per the report requirement and doing three months of internship in the bank and based on
my finings and analysis, I would like to give some suggestions for their further improvement.
The suggestions are given below-

Better Customer Service should be provided in order to attract more clients.

Increasing number of unsatisfied customers will incur loss to the organization.
In this edge of competition UCB should introduce Islamic banking section to grab
more customers.
Now a day’s people are very busy and use internet to get information. For that UCB
should develop a more organized and effective web-site so that customers can get
necessary or basic information about the bank products, offers and interest rate.
It needs to bring some improvisation into the ATM card service to gain the customers
satisfaction.
They may put chip in debt cards so that it can be more secured.

UCB does not give their high attention on advertisement on Newspaper, TV, and
Radio etc. As a competition market it is too much important for any organization to
increasing their advertisements procedure to provide information to the clients &
Probable clients.

In case of opening an account some big parties come to open accounts in reference with
the high official of the bank. They do not submit all the necessary papers in the time of
account opening so it crates pending account and banker find it difficult on later to collect
necessary papers.
Conclusion
United Commercial Bank is one of the most promising private commercial banks in
Bangladesh. Every day United Commercial Bank makes an effort to increase their product
and services although they provide a wide range of product and services. It is committed to
provide high quality financial service to contribute to the growth of GDP of the country and
the growth of industrialization, boosting up export, creating employment opportunity for the
educated youth, raising standard of living of limited income group and overall sustainable
socioeconomic development of the country. UCB always tried its level best to perform
financially well. In spite of trying to do well in some aspects UCB faced some financial
problems from time to time. Some of the problems were-excessive bad loans, shortage of
loans and advances, scarcity of cash in hands due to vault limit etc. These problems arouse
time to time due to economic slowdown, interest rate fluctuation, emerging capital market,
inflation in the money market and so on. Fighting with all these problems and competing with
other banks every moment the bank is trying to do better to best. If this thing continues we
hope that United Commercial Bank will develop even more in the future.

Banking sectors no more depends on only on a traditional method of banking. In this

competitive world banking sector has stretched its wings wide enough to cover any kind of
financial services. Not only from the local banks but also from the foreign banks, the banks of
today face a tough competition. The major tasks of banks for banks to survive in this
competitive environment are by managing its assets and liabilities in an efficient way. To
make the assets especially loan and advances banks must have to more cautious and
otherwise these asset will became a burden for the bank. To have fruitful investment bank
must have to do the marketing their product perfectly.
References
http://www.ucb.com.bd/

Annual report of UCBL 2014-2015

Leaflets and brochures of UCBL

Many official documents (collected from my supervisor)

Appendix
Corporate Information at a Glance

Name United Commercial Bank Limited

Date of Incorporation 26 June, 1983
Commencement of Business 27 June, 1983
Registered Office Bulus Center, Plot – CWS – (A) – 1, Road No – 34,
Gulshan Avenue, Dhaka – 1212, Bangladesh
Date of Listing with DSE & CSE DSE – 30 November, 1986 & CSE – 15 November, 1995
Chairman Mr.M.A.Sabur
Managing Director Mr. Muhammed Ali
No. of Branches 158
No. of ATM Booth 152
No. of SME Centers 2
No. of Women’s Branches 1
Off-Shore Banking Unit 1
Auditors Hoda Vasi Chowdhury & Co. Chartered Accountants
Swift Code UCBL BDDH
Telephone No. +88-02-55668070, +88-09611999999
E-mail info@ucbl.com
Website www.ucbl.com
Fax +88-02-55668070-6000, +88-09611999911-520
Slogan United We Achieve
Logo
Revision of interest rates of Scheme Liability Products w.e.f. 21.01.2016
SL Name of the Products Revised of Rates of Interest
# (w.e.f. 21.01.2016)
Term/Tenure Rate
1 UCB Money Maximizer Double in 7.57
(Double Money Fixed Deposit) 9½ years
2 UCB Earning Plus 3 & 5 yrs 7.50
(Monthly/Quarterly Interest Payable)
3 UCB DPS Plus 7.50
(Monthly Savings Scheme)
4 UCB Women’s DPS Plus 8.00
(Monthly Savings Scheme) 2,3,5,7 & 10 yrs
5 UCB RMG DPS Plus 8.00
(Monthly Savings Scheme)
6 UCB NRB DPS Plus 7.50
(Monthly Savings Scheme)
7 UCB Youngsters DPS Plus 5 & 10 yrs 8.00
(Monthly Savings Scheme)
8 UCB Multi-Millionaire 5-15 years 7.50
(Monthly Savings Scheme)

Interest Rate on Deposits

SL Type of Deposits
Savings Deposit (SB) Rate of Interest (%. p.a.)
w.e.f. 17.02.2016
A. Below Tk. 10.00 Lac 3.50
01. B. Tk. 10.00 Lac & above but below Tk. 50.00 Lac 4.00
C. Tk. 50.00 Lac & above but below Tk. 1.00 Crore 4.50
D. Tk. 1.00 Crore & above 5.00
Short Notice Deposit (SND)
A. Below Tk. 1.00 Crore
B. Tk. 1.00 Crore and above but below Tk. 25.00 Crore 3.00
02. C. Tk. 25.00 Crore and above but below Tk. 50.00 Crore
D. Tk. 50.00 Crore and above but below Tk. 100.00 Crore 4.00
E. Tk. 100.00 Crore and above
Imperial Savings
A. Below Tk. 1.00 lac 0.00
03. B. Tk. 5.00 lac and above but below Tk. 30.00 lac 4.00
C. Tk. 30.00 lac and above but below Tk. 1.00 Crore 5.25
D. Tk. 1.00 Crore and above 5.50