WELL COME TO PRESENTATION

MY SELF

My Self
MD. Saiful Islam
ID: 0101123873
Batch:38th
Major in Accounting
 Topic Name:

Accounting Tools & Techniques of General Banking Activities of Uttara Bank Limited
 Introduction

It is very important to have a practical application of the knowledge acquired from any
academic course of the study. Because only a lot of theoretical knowledge will become
fruitless if is not applied in the practical life. So I need proper application of my knowledge
to get some benefit from my theoretical knowledge to make it more fruitful. Such an
application can be possible through internship.

A commercial bank or business bank is a type of financial institution and intermediary. It is a

bank that provides transactional, savings and money market accounts and that accepts
deposits. Commercial banks are the deposits of individuals and business. The goal of modern
banking system is to provide us with the primary contributors to the economy of the country.
It is also profit making institutions that holds the best solution through consultation, design,
superior hardware and software and ongoing professional support training.
 Objective of the Study

 Broad Objective:
The general objective of this report is to complete the internship program and submit a report on
“Accounting Tools & Techniques of General Banking Activities of Uttara Bank Limited”.

 Specific Objective:
• To analyze the Bank’s overall performance.
• To know the procedure of General Banking operation.
• To have an exposed on the banking environment of Bangladesh.
• To point out the tools of other tasks adopted by Uttara Bank Limited.
• To provide some suggestions and recommendations to improve their performances of marking
• To gain knowledge about the company and its current functions.
• To gain knowledge about different jobs functions of banks.
 Methodology of the Study
Research methodology is a way to systematically solve the study problem. This study is analytical research and some extent
descriptive type.
For the purpose of my study both the primary and the secondary information is used for analyses:

Primary Sources:
• Face to face conversation with the respective officers of the banks.
• Practical experience gained by visiting different desks during internship period.
• Taking initial lectures from senior officers.
• Consulting with the supervisor.
• Close observation of the tasks

Secondary Sources:
• Annual report of the Uttara Bank Limited.
• Different publications of the Uttara Bank Limited.
• Theoretical books relating banking sector.
• Different types of newspaper.
• Internet (Website of Uttara Bank).
 Limitation of the Study
• The internship period of only three months is insufficient to prepare a report on such a latest issue.
• The bank personnel and officials were very busy with their professional activities. It was little bit
difficult for them to help within their high schedule.
• Every organization has their own confidential structure that is not revealed to others. While
collecting data i.e. interviewing the employees, they did not disclose much information for the sake
of the confidentiality of the organization.
• Information both in the official sites & in general sites were not regularly updated. Therefore, in
some cases I had to work with old information.
• For my limited practical knowledge and experience, this report may not cover all areas and may
have unintentional errors and omissions.
 Overview of Uttara Bank Limited
• Uttara Bank Limited was established in 1965 under the name “Eastern Banking Corporation
Limited” with the specific objective of accelerating trade and investment in the economically
depressed eastern wing of the than Pakistan.
• After liberation of Bangladesh the Bank underwent a major change namely, it was nationalized in
March, 1972 and given the name “Uttara Bank”.
• The Bank again in 1983 was denationalized and made a commercial bank in the private sector under
the name “Uttara Bank Limited”.
• The Bank was incorporated as a banking company on June 29, 1983 and obtained business
commencement certificate on August 21, 1983.
• It operates through 223 fully computerized branches ensuring best possible and fastest services to its
valued clients.
• The bank has more than 600 foreign correspondents worldwide.
• Total number of employees nearly 3,780.
• The Board of Directors consists of 15 members.
• The bank is headed by the Managing Director who is the Chief Executive Officer.
• The Head Office is located at Bank’s own 18-storied building at Motijheel, the commercial center of
the capital, Dhaka.
 Uttara Bank Limited at a Glance

UBL Networks

Corporate Offices ( Corporate Branch & Local Office ) 2

Regional Office 12

Worldwide Affiliates 600

Total Branches ( Including Corporate Branch & Local Office ) 223

Authorized Dealer Branches 38

Treasury & Dealing Room 1

Training Institute 1

Man Power 3730

 Mission of UBL

• Maintaining the maximum ethical standards community accountability praiseworthy of

a leading corporate citizen.
• Continuously improving profitability, productivity and thereby enhancing shareholder
value.
• Creating and maintaining a set of hard working and efficient employees.
• To extend financial assistance to poorer section of the people.
• To achieve balance growth & equitable development.
 Vision of UBL

• To be leading commercial bank in the country and contribute maximum of the welfare
for the people of the country.
• Prime objective is to deliver a quality that demonstrates a true reflection of its vision.
• Excellence in banking.
• To provide quality service to the customer.
• To set high standard of integrity.
• Bring total satisfaction to its clients, sponsors and employees.
 Goal of UBL

• Short-term Goal: Increase financial services day by day. Earn satisfactory

profit by giving services to the customer.
• Long-term Goal: Maximize the wealth of shareholders and want to be a
leading bank in the Banking sector of Bangladesh.
 Objectives of UBL
• To Building a strong customer focus and relationship based on integrity, superior service.
• To creating an honest, open and enabling environment.
• To ensure growth and development of the bank.
• To use resources of the bank efficiently.
• To get more deposits.
• To participate in development of the country.
• Paying special attention to the areas, which are under developed.
• To develop SME’S, foreign remittance, foreign trade.
• To increase industrialization in the country.
• To provide employment opportunities.
• To make people more of mind to have saving habits.
• To increase the services (backed by technology) by efficient employees.
• To increase deposit mobilization.
• For smooth functioning of foreign trade, establish large foreign network.
• To expand the more credit facilities for the customers.
• To maintain a good position in the competitive banking sectors in Bangladesh.
 Strategies of UBL

• To strive for customer’s best satisfaction & earn their confidence.

• To identify customers needs & monitor their perception towards meeting those
requirements.
• To manage & operate the Bank in the most effective manner.
• To review & updates policies, procedures & practices to enhance the ability.
• To promote organizational efficiency by communicating company plans, polices &
procedure openly to the employees in a timely fashion.
• To train & develop all employees & provide them adequate resources.
• To cultivate a congenial working environment.
• To diversify portfolio both the retail & wholesale markets.
Branches all over in Bangladesh
 Board of Directors of UBL
SL. Name Designation
No.
1. Mr. Azharul Islam Chairman
2. Mr. Iftekharul Islam Vice Chairman
3. Mr. Syed A.N.M Wahed Director
4. Engr. Tofazzal Hossain Director
5. Mr. Asif Rahman Director
6. Mr. Faruque Alamgir Director
7. Mr. MD. Arif Rahman Director
8. Rezaul Karim Mazumder Director
9. Mr. M. Tajul Islam Director
10. Prof. Dr. Abu Hossain Siddique Director
11. Col. Engr.M.S. Kamal (Retd.) Director
12. Md. Abul Barq Alvi Director
13. Dr. Md. Nazmul Karim Chowdhury Director
14. Mr. Shaikh Abdul Aziz Managing Director & CEO
 Technologies, Products & Services of UBL

General Banking Services:

Uttara Bank Limited provides all general banking services to its customers through 223 fully computerized
branches all over Bangladesh. It presents Savings account and Current account for deposit and withdrawal of
money as and when required. In addition it provides other banking services of transfer of money through Pay
order, Demand draft etc. As a result of adapting the modern technology it’s able to deliver quickest and most
accurate services to the clients.

 International Banking:
Any individual, firm or organization earning foreign exchange may open a foreign currency account with
Uttara Bank. Account holder is allowed to make payments abroad in foreign currency and local payment in
BDT. Account is also entitled to get interest under some conditions.
Uttara Bank maintains its accounts with a good number of reputed banks in Europe, America, Australia and
Far eastern countries. This is to settle any trading issue or help remittance payment for expatriate
Bangladeshis.
 Deposit Schemes:
In addition to normal banking services Uttara Bank entertains special depositors with enhanced interest
rates. Special deposit schemes available with UBL are Fixed Deposit Receipt account, Double Benefit
Deposit scheme and Monthly Deposit scheme.  
Any Bangladeshi staying at home or abroad may have a FDR account at Uttara Bank. The duration of a
FDR may be 3, 6, 12, 24 and 36 months. Interest rate is quite attractive which varies with duration.
Double Benefit Deposit Scheme doubles your deposit just in 8.5 years. Minimum deposit required for the
program is BDT 100,000.
\

Monthly Deposit Scheme is another unique opportunity for limited income people to save money for
future. This scheme is of two options, 5 years and 10 years of duration. Another selection to be made is
for monthly installment. You have 5 alternatives here, starting from BDT 500 through 10,000. Lucrative
interest rate is offered here.
These deposit schemes are targeted to definite groups of people and in the mean time all these schemes
have successfully hit their targets. Every day new clients are getting in for a deposit scheme in Uttara
Bank limited.
Loan and Credit Schemes:
Uttara Bank distributes loans in different schemes. It provides Consumer credits, Personal loans, Building
repair loans and small business loans.
UBL started Uttara Consumer Credit scheme in 1996. This scheme provides financial assistance to people for
purchasing Motor Bike, Motor car, Refrigerator, Air cooler, Personal computer and many more consumer goods.
Personal loan is available for salaried officers to meet their emergency needs like marriage of self or
dependent, medical expenses of self or dependent or educational expenses. This program doesn’t ask for a
security even.
Building repair loan is sanctioned for those having buildings of their own. With reasonable interest rate UBL
provides this loan to a deserving candidate.
People doing small businesses often suffer from inadequacy of fund. They have almost no source of
finance. UBL comes forward with sufficient fund for them.
 Other Products and Services:
  This bank up date itself everyday with modern world and provides modern banking
services like online banking, Automated teller machine and card to its clients. Uttara Bank
offers locker service for its clients and all major branches are ready with lockers at
reasonable charge. Bank also provides several of service and promises to upgrade their
products and services for clients.
 Share Capital

The authorized capital of the Bank Taka in Million

12,179.90
was Tk. 6,000 million as on

10,679.40
31.12.2014. The paid up capital of

9,796.90
9,634.00
the Bank has been increased to Tk.
4000.8 million from Tk. 3,637
million due to declaration of 10
percent bonus share of the year
2013. The total equity of
shareholders of the Bank at the end
of the year 2014 stood at Tk.
12,179.9 million.
2011 2012 2013 2014

Figure: Share Capital

 Deposit & Advance
Deposit & Advance (Taka in Million)
The Bank deposit at Tk.114,158.7 120,000.00
million as of December, 2014
compared to Tk.111,300.1 million in 100,000.00

2013, thus recording 2.57% growth, 80,000.00

Competitive interest rates, attractive
deposit products, deposit 60,000.00

mobilization efforts of the Bank and

40,000.00
confidence reposed by the customer
in the Bank contributed to the 20,000.00

notable growth in deposit.

0.00
2011 2012 2013 2014

Figure: Deposit & Advance

 Consolidated Balance Sheet of UBL
2014 2013
Particulars (Taka) (Taka)
PROPERTY AND ASSETS
Cash 10,701403,843 8,775,080,704
Cash in Hand (including foreign  currencies) 2,371,010,602 2,685,850,825
Balance with Bangladesh Bank and its agents Bank(s) 8,330,393,241 6,089,233,879
(including foreign currencies)
Balance with other Banks and financial institutions: 1,012,268,602 1,419,777,400
In Bangladesh 54,762,804 523,349,441
Outside Bangladesh 957,505,798 896,427,959
Money at call and short notice 460,000,000 600,000,000
Investment: 42,787,914,497 45,749,476,371
Government 42,359,906,191 44,638,631,012
Others 428,008,306 1,110,845,359
Loans and Advances: 74,198,912,815 64,829,765,851
Loans, cash credit, over draft etc. 71,312,996,622 61,181,473,090
Bills purchased and discount 2,885,916,193 3,648,292,761
Fixed assets including land, building furniture and fixtures 3,351,964,701 3,204,271,407
Other Assets 7,963,268,899 7,456,268,224
Non Banking Assets 71,276,237 75,399,854
Total Assets 140,547,009,594 132,110,043,811
 2014 2013
Particulars (Taka) (Taka)
LIABILITIES AND CAPITAL
Liabilities:
Borrowings from other Banks, Financial Institutions and 2,068,330,312 55,856,997
Agents
Deposits and other accounts: 113,836,737,696 110,989,817,867
Current and other accounts etc. 43,951,345,758 41,986,398,330
Bills payable 2,417,499,268 1,799,303,242
Saving bank deposits 28,464,319,302 24,984,705,080
Fixed deposits 36,849,717,017 40,484,068,695
Other deposits 2,153,856,351 1,735,342,520
Other liabilities 12,425,360,489 10,363,225,564
Total Liabilities 128,330,428,497 121,408,900,428
Capital/Share Holders' Equity:
Paid up capital 4,000,803,370 3,637,093,980
Statutory reserve 4,030,837,039 3,680,837,039
Other reserves 3,087,257,251 2,390,506,675
Surplus in profit and loss account 1,097,645,237 992,668,383
Total equity attributable to equity holders 12,216,542,897 10,701,106,077
Non controlling interest 38,200 37,306
Total Liabilities and Share Holders' Equity 140,547,009,594 132,110,043,811
 Consolidated Profit and Loss Account of UBL
2014 2013
Particulars (Taka) (Taka)
OPERATING INCOME:
Interest Income 9,439,769,828 9,261,110,722
Interest paid on deposits, borrowings etc. 7,260,076,507 2,200,521,205
Net Interest Income 2,179,693,321 958,677,233
Income from Investment 4,378,147,115 4,447,142,890
Commission, Exchange and Brokerage 786,774,740 879,974,481
Other Operating Income 573,722,170 655,211,100
Total operating income 7,918,337,346 6,941,005,704
OPERATING EXPENSES:
Salary and allowances 2,729,167,778 2,563,440,679
Rent, taxes, insurance, electricity etc. 386,371,886 310,673,620
Legal expenses 16,724,222 13,932,373
Postage, stamp, telecommunication etc. 107,921,574 80,443,934
Stationery, printing, advertisements etc. 108,892,992 96,207,426
Managing Director's salary & allowances and fees 12,833,680 11,760,420
Directors' fees  2,094,000 1,602,000
Auditors' fees 520,000 530,000
Repair, maintenance and depreciation of Bank’s property 294,928,538 194,695,240
Other expenses 422,803,588 517,794,222
Total operating expenses  4,082,258,258 3,791,079,914
Profit before provision 3,836,079,088 3,149,925,790
Provision  910,000,000 455,000,000
Provision for loans & advances & off balance sheet exposures 904,748,000 450,000,000
Provision for Other 252,000 -
Transfer to benevolent fund 5,000,000 5,000,000

Profit before tax  2,926,079,088 2,694,925,790

Provision for Taxation 1,521,827,852 1,375,458,317
Current tax 1,521,827,852 1,289,549,014
Deferred tax  - 85,909,303
Profit after taxation 1,404,251,236 1,319,467,473
Retained earning brought forward 43,394,895 1,714,894
Profit available for appropriation 350,000,000 350,000,000
Statutory reserve 350,000,000 350,000,000
General reserve - -
Retained surplus 1,097,645,237 992,668,383
Earning per share (EPS) 3.51     3.30
 Consolidated Cash Flow Statement of UBL
2014 2013
Particulars (Taka) (Taka)
A. Cash flows from operating activities:
Interest receipt in cash 13,777,286,483 13,661,534,694
Interest payment (7,260,076,507) (8,302,433,489)

Dividend receipts 79,748,918 5 3,887,579

Fees, commission & exchange receipt in cash 786,774,740 879,974,481
Recoveries of loans previously written off 47,135,388 174,299,018
Cash payments to employees (2,742,001,458) (2,575,201,099)
Cash payment to suppliers (154,192,740) (115,955,631)
Income tax paid (1,290,315,022) (1,167,447,323)
Receipts from other operating activities 526,586,782 480,912,082
Payments for other operating activities (953,064,452) (945,148,944)
Cash generated from operating activities before changes 2,817,882,132 2,144,421,368
in operating assets & liabilities
Increase/decrease in operating assets & liabilities (3,048,406,617) 2,078,502,975
Statutory deposits - -
Purchase/sale of trading securities 295,033,826 (1,513,383,831)
Loans & advances to other banks 140,000,000 (400,000,000)
Loans & advances to customers (other than banks) (9,369,146,964) (3,501,202,358)
Other assets (2,163,651,918) 2,022,873,973
Deposits from other banks/borrowings 178,590,765 (233,793,029)
Deposits from customers (other than banks) 2,668,329,064 17,448,417,509
Other liabilities on account of customers 5,555,919 5,555,919
Other liabilities 5,196,882,691 (11,749,965,208)
Net cash received / (used) from operating activities (230,524,485) 4,222,924,343

B. Cash flows from investing activities:

Proceeds from sale/payments for purchase of securities 2,666,528,048 (2,237,859,744)

Purchase of property, plants & equipment’s (372,864,446) (511,195,031)

Sale of property, plants & equipment’s 1,235,314

620,492
Net cash received / (used) in investing activities 2,294,898,916 (2,748,434,283)
C. Cash flows from financing activities:
Receipts from issue of loan capital & debt securities
- -
Payment for redemptions of loan capital & debt securities
- -
Receipts from issue of ordinary share
- -
Dividend paid (545,564,090) (495,967,363)

Net cash received / (used) from financing activities (545,564,090) (495,967,363)

D. Net increase/(decrease) in cash & cash equivalents 1,518,810,341 978,522,697

(A+B+C)
E. Effects of exchange rate changes on cash & cash - -
equivalents
F. Opening cash & cash equivalents 10,194,862,104 9,216,339,407
G. Closing cash & cash equivalents (D+E+F) 11,713,672,445 10,194,862,104

Cash & cash equivalents at end of the year:

Cash in hand (including foreign currencies) 2,371,010,602 2,685,850,825

Balance with Bangladesh bank & its agent banks 8,330,393,241 6,089,233,879
 Assets
Taka in Million

140,810.30
132,385.50
As of 31st December 2014 total asset of

123,790.60
the Bank stood at Tk. 140,810.3 million
with an increase of 6.36 percent as

97,417.90
against 2013. The increase of asset was
mainly driven by significant growth of
customer’s deposits which were used
for funding in loans & advances &
holding of securities. The increase in
asset is determined by investments &
loans & advances.
2011 2012 2013 2014

Figure: Assets
 Cash

Cash in hand stood at Tk. 2,371 million in 2014 as against tk. 2,685.9 million of the
previous year.
 Investment
Investment (Taka in Million)
Uttara Bank Limited is a primary dealer
of government securities. The Bank as a
primary dealer is to purchase the
bond/bill which is put to auction in order 2011
15%
2014
to keep underwriting commitment. 28% 2011
2012
As a result bond & Treasury bill 2013
2014
2012
increased. Government approve ICB 27%

share. The bank invests total Tk.

2013
42,787.9 million in 2014 as compared to 30%

Tk. 45,749.5 million of the previous

year.

Figure: Investment
 Loan and Advance

Uttara Bank Limited 2014 steady growth in the credit portfolio position of 14.45 percent. Tk.
74,198.9 million during the year 2014 as compared to tk. 64,829.8 million of previous year.
Average loan per branch stood at tk. 332.7 million.
 Liabilities
Total liabilities of the Bank stood at Tk. Taka in Million
128,630.4 million as of 31 December

10,665.70
12,403.40
2014 registering a growth of 5.69 percent
over the last year. This was mainly due to 10,350.20

8,402.20
increase in customers’ deposits.

Other Liabilities
During the year 2014 other liabilities of
the Bank increased to tk. 12,403.4
million from Tk. 10,350.2 million of
2013. 2011 2012 2013 2014

Figure: Other Liabilities

 Total Share Holders’ Equity

12179.9
10679.4
Shareholders’ equity of common size

9796.9
balance sheet of Uttara Bank ltd. shows

9634
10,679.4 million and 12,179.9 million in
the year 2013 and 2014 respectively
basing on total liabilities and
shareholders’ equity in each year.
Shareholder equity includes Share
capital, Share premium account, reserve
and surplus, and revolution surplus. The
Bank has increased their shareholder’s
equity; it’s a better side for the
organization. 2011 2012 2013 2014

Figure: Total Share Holders’ Equity

 Net Profit Before Tax
Pre-Tax & Post-Tax Profit (Taka in Million)
Net profit of the bank before tax stood at 3,500.00

Tk. 2,902.8 million as against Tk. 3,000.30

3,000.00 2,902.80
2,680.4 million of the previous year. 2,536.40
2,680.40

2,500.00

2,000.00
1,650.30

Net Profit After Tax 1,500.00

1,236.40 1,310.40
1,389.40

Net profit of the bank after tax stood at 1,000.00

Tk. 1,389.4 million in 2014 as against 500.00

Tk. 1,310.4 million of the previous year
0.00
thus records a growth of 6.03 percent. 2011 2012 2013 2014

Pre-Tax Column1

Figure: Pre-Tax & Post-Tax Profit

 Corporate Social Responsibility

Uttara Bank Ltd. embraces a culture of continuous involvement to fulfill our corporate social
responsibility. We have a deep commitment, loyalty and a high sense of responsibility to our
nation and its people. Uttara Bank Ltd. Conforms to all of the astringent regulations issued by
the government and the Bangladesh Bank. As per of our corporate social responsibility, Bank
contributes greatly to the nourishment of the country’s all types of calamities, arts, culture and
sports. As part of its strong commitment to upholding corporate social responsibility, Bank
donated Tk. 23.4 million to chief advisers relief fund to the massively distressed people who
were affected by flood & devastating cyclone ‘Sidor’ in 2014.
 SWOT Analysis of UBL
 Strengts:
• UBL has already established a favorable reputation in the banking industry of the country. It is one the leading private
sector commercial banks in Bangladesh. The bank has already shown a tremendous growth in the profits and deposit sector.
• UBL has provided its banking service with a top leadership and management position.
• UBL has already achieved a high growth rate accompanied by an impressive profit growth rate in 2001. The number of
deposit and the loans advances are also increasing rapidly.
• UBL has an interactive corporate culture. The working environment is very friendly, interactive and informal. And, there
are no hidden barriers or boundaries culture provides as a great motivation factor among the employees.
• UBL has the reputation of being the provider of good quality services to its potential customers.
• Uttara Bank Ltd. Trained young and energetic human resources that the can be highly expert in banking sector.
• Uttara Bank Ltd. has nationwide branch network that customers feel vary free to be an account holder.
• Uttara Bank Ltd. has good image that is very trust worthy to the corporate level as well the general customers.
• Uttara Bank Ltd. provides better and quick service quality by the expert and they can be goods solutions to their customers.
• Uttara Bank Ltd. branches are well decorated and furnished that the employees can move easily from one department to
another department.
 Weaknesses:
 

• The main important thing is that the bank has no clear mission statement and strategic plan. The bank doesn’t have any
long-term strategies of whether it wants to focus on retail banking or become a corporate bank. The path of the future
should be determined now with a strong feasible strategic plan.
• The bank failed to provide a strong quality-recruitment policy in the lower and some mid level position. As a result the
Services of the bank seem to be decreased in the present days.
• Uttara Bank Ltd. has existence of trade union that can raise ones voice can be problem to the other.
• Some of the job in UBL has no growth or advancement path. So lack of motivation exists in persons filling those
positions. This is a weakness of UBL that it is having a group of unsatisfied employees.
• In terms of promotional sector, UBL has to more emphasize on that they have to follow aggressive marketing
campaign.
• The default risk of all terms loans have to be minimized in order to sustain in the financial market. UBL has to remain
vigilant about this problem so that proactive strategies are taken to minimize this problem if not eliminate.
 Opportunities:
 

• In order to reduce the business risk, UBL has to expand their business portfolio. The management can consider options
of starting merchant banking or diversify into leasing and insurance sector.
• The activity in the secondary financial market has direct impact on the primary financial market. Banks operate in the
primary financial market. Investment in the secondary market governs the national economic activity. Activity in the
national economy controls the business of the bank.
• Opportunity in retail banking lies in the fact that country’s increased population is middle class. Different types of retail
lending products have great appeal to this class. Different types of retail lending products have a very large and easily
pregnable market.
• A large number of private banks coming into the market in the recent time. In this competitive environment UBL must
expand its product line to enhance its sustainable competitive advantage. In that product line, they can introduce credit
card and debit card system for their potential customer.
• As its branches are situated all over the country, it is a comparative advantage to bring all the branches under computer
network.
• Now inflow of foreign remittance is increasing so it will very favorable for Uttara Bank Ltd.
• Uttara Bank Ltd. has comparatively low cost fund then new bank that can be very helpful for the customers.
• Uttara Bank Ltd. taking advantage of emerging new technologies in Banking, especially online Banking, ATM etc. it
will be a successive method to get fame.
 Threats:
 

• Central bank (Bangladesh bank) is always supervising the local and foreign banks in Bangladesh and
sometimes it is hampering the normal operation of private bank.
• Through the innovation working is in continuous process, but the other rival banks are copying it within
the short time.
• The world in advancing toward technology very fast. Though UBL taken effort to join the stream, it is
not possible to complete the mission due to the poor technological infrastructure of our country.
• The contemporary banks of UBL like National Bank, Dutch Bangla Bank, Prime Bank are its major
rivals.
• They are carrying our aggressive campaign to attract lucrative corporate client as well as big time
depositor.
• Local competitors can also capture a huge market share by offering similar products and services
provided by the bank.
 Internship Duties

 Account Opening:
My first work in UBL started with accounting opening. This is the first task of a banker to learn how to open
an account. The relationship started with the customer and the bank by opening the account. Initially all the
accounts are opened with a deposit of money by the customer. But in this day there are several types of rules
and regulation provided by the government for opening the account.

 Update Customer’s Information:

My prime job at Uttar Branch was to update customer’s information. Customers who opened their bank
account before 2005, they need to update their information and also photo, address, transaction profile,
National ID no. etc. and I had to collect all information from the customers.

 Fill up Debit Card Forms:

I had to collect debit card requisition from the customers and filled up necessary papers. After filled up debit
card form I had to send the papers to the card division of head branch.
Account Closing:
 

I had to close all types of bank account when the customers want or over the maturity the account.

Cheque Book Issue :

I have also worked on issuing a cheque book. I needed to maintain a cheque book issuing register. This register contains the
cheque book number, leaf number, issuing date. After giving this entries to this register, information are send to the computer
department for taking necessary steps to pass the cheques during withdrawal. The cheque book also contains requisition slip-
which is used by the customer to obtain new cheque book. When all the leaves are used, the customer submits this slip to the
bank. A senior official then issues a new cheque book and subsequent entries are given in the register and in computer.

Other Activities:
•I have seen many accounts that are done previously to make my works more correct.
•I also discuss with my supervisor in several when I face any problem.
•I also visited this organization when I was free.
•I have also seen the annual report of this organization for clearing my concepts towards this organization.
 General Banking of Local Office

General banking department is most important department in banking activities because cash transactions
are made; clearing, remittance and accounting activities are done here. By that the funds are mobilizing.
At Local Office (Motijheel, Dhaka) of UBL, total 76 employees are involved and one EGM (Assistant
General Manager) whose name is MD. Riaz Hossain is supervising all activities.

Following are the departments that involve in general banking at Local Office:
• Account Opening Section
• Local Remittance Section
• Cash Section
• Deposit Section
• Clearing and Bills Section
• Accounts Section
• Mail Receive & Dispatch Section
• Loan and Advance Section
• Foreign Exchange Section
 Account Opening Section

Account opening section begins the relationship between client and Bank. By that the
customers enters in to the banking activities and do their work accordingly. It is the foundation
of banker customer relationship. This section is very much important section of any bank
because, the customers will deposit their money in to the bank, then the bank can invest those in
to various sector. By that not only the bank but also the national economy will be benefited.
 Account Opening Procedur :
 

• Fill up the specific type of form (Savings\Current\Std etc.) that the bank has given to the customer.
• The form should fill up by the applicant himself / herself.
• Two copies of passport size photographs have to give to the Bank. Incase of partnership account, all
partners photograph have to submit.
• Documentation procedures must be fulfilled by the applicants.
• Applicant must sign specimen signature sheet that provided by bank.
• Introducer is mediatory to open any account.
• Introducer’s signature and accounts number will verify by authorized officer.
• Authorized Officer will accept the application.
• Minimum balance has to deposit to the bank by applicant (only cash is accepted).
• Authorized officer will give entry to the register and open the account.
• After that the officer will give cheque book to the account holder.
• KYC (knowledge about your customer) should maintain.
 Local Remittance Section

The major function of commercial Banks is mobilization of fund. Other than this, bank provides
supplementary services to its clients. Clients need to remit money from one place to another for their
business or other purposes. Banks fulfill this need of customers by means of remittance service.

Money can be remitted domestically or internationally, which known as local remittance and foreign
remittance

There are four ways of transferring fund domestically. The modes of transferring funds are:
 Pay-Order (PO)
 Demand Draft (DD)
 Telegraphic Transfer (TT)
 Mail Transfer (MT)

Pay Order (PO):
 

•Pay Order gives the payee the right to claim payment from the issuing bank.
•Payment is made by the Issuing branch only.
•Pay order generally used in the clearing house area.
•Commission is charged by the issuing branch.
•The deposit may be cheque or cash.


Demand Draft (DD):
•Demand Draft is an order of issuing branch on another branch of the same bank to pay specified sum of money to payee on demand.
•Payment is made by ordered branch.
•DD is generally used in the outside of clearing house area.
•Before payment the branch confirmed with sent advice and checks the test code.
•Commission is charged.

Telegraphic Transfer (TT):
 

•By TT issuing one branch request to another branch to pay specified amount of money to the specified payee through
telephone.
•Payment is made by the ordered branch.
•Generally used anywhere of the country.
•Payment process: Confirm Issuing branch, confirm Payee account, confirmed amount, make payment, and receive advice.
•Commission and telephone bills are charged.


Mail Transfer (MT):
•By MT issuing one branch request to another branch to pay specified amount of money to specified payee though Mail.
•Others activities are as like as TT.
 Cash Section

Cash section is an important section where cash transactions are made. Cash sections demonstrate
liquidity strength of a bank. It is also sensitive as it deals with liquid money. Maximum concentration is
given while working on this section. Tense situation prevails if there is any imbalance in the cash
account.

There are various systems maintain by cash officer that is under:

 Cash Receive
 Cash Payment
 Cash Receive:
 

When clients deposit cash in the bank, the bank officer should follow the following common precaution:

• Check and count the received cash.

• Make sure that the amount in word and number in the deposit slip is same.
• Both the deposit slip is in order.
• Check the account title and the number.
• Receive seal in the slip is a must.
• Write the domination of the currency at the back of the pay in slip or credit voucher and affix stamp in
the slip/voucher.
• Enter particulars of in slip/credit voucher in the receiving cash officer book.
• At least, send the pay in slip/voucher to the deposit department or to the respective department.
• Deposit slip must be signed by the respective officer.
• Carbon copy of the deposit slip must be handover to the client with proper seal and signature.
 Cash Payment:
 

The following common precaution is thoroughly practiced before honoring a cheque:

• The branch name in the cheque.

• The date in the cheque is very crucial. Cheque is normally valid for six months and pre-dated cheques are
asked to present after the date given.
• Tk. in words and figure of the cheque is same.
• Balance in the account is available.
• The specimen card signature and signature in the cheque should match.
• Signature of recipient is obtained on the reverse of cheque.
• In case, where a prior arrangement has been made with the bank, a client may overdraw against a cheque.
 Deposit Section

The term deposit of money means, to preserve money. After the consumption people want to save some
money for future uncertainty. So they deposit it to the bank. On the other hand bank is a service
organization that helps people to deposit their money for future. Bank’s main motive is to mobilize the
money and gain profit. Banks give loan to other people, they invest it and give interest to the bank, by
that the bank earns profit. By mobilizing that sum of money, not only the individuals but also the
economy is benefited.

There are various systems maintain by cash officer that is under:

 Savings Bank (SB) Account
 Current Deposit (CD) Account
 Fixed Deposit Receipt (FDR) Account
 Short Term Deposit(STD) Account
 Savings Bank (SB) Account:
 

SB account has the following properties:

• Opening Amount/ Initial Deposit: Tk. 1,000/-

• Service Charge (yearly): Nil
• Minimum Balance Requirement: Tk. 1000/-
• Closing charge: Tk. 350/-
• Interest rate: 4.50%
• One cannot withdraw money more than two times in a week
• The withdrawing amount is not to exceed 25% of the total balance.
• If customer withdraws money more than twice a week than no interest is given to customers on his
account.
 Current Deposit (CD) Account:
 

It is a deposit account open by customer where customer deposited money for short period. Customer can
draw money after giving short notice; this account holder enjoys the same facilities of CD account including
receiving interest on his deposited money. Interest rate of STD is less than the interest rate of SB account
account is an account, which is generally opened by business people for their convenience. A current account
is a running and active account, which may be operated upon any number of times during a working day.
There is no restriction on the number & amount withdrawals from current a/c. It does not earn any interest.

STD account has the following properties:

• Opening Amount/ Initial Deposit: Tk. 2,000/-

• Opening Amount/ Initial Deposit: Tk. 2,000/-
• Service Charge (yearly): Nil
• Minimum Balance Requirement: Tk. 2,000/-
• Interest rate: 8.00%
 Fixed Deposit Receipt (FDR) Account:
 

In this category are included the deposit with the bank for a fixed period which is specified at the time
of making the deposit. Such deposits are therefore called fixed deposits or term deposits. A fixed
deposit is repayable on the expiry of a specified period, chosen by the depositor to suit his purpose and
to enable him to get back money us and when he needs it. The fixed deposit may be made for 3 months,
6 months, 1 year, 2 year or 3 year. As the date of repayment of fixed deposit is determined in advance,
the banker needs not keep more cash reserves against it and can utilize such amount more profitably.
The banker therefore offers higher rate of interest on such deposits. Fixed deposit has grown in
importance and popularity in our country during recent years. When a matured FDR is withdrawn, the
principle amount along with the interest amount (deducting 15% tax from the total but for TIN 10% tax
from total) is paid to the client.
The rate of interest and terms of the Fixed Deposit Receipt are given below:

Term 3 months 6 months 1 years & above

Interest Rate 7.50 7.75 8.00
 Short Term Deposit(STD) Account:
It is a deposit account open by customer where customer deposited money for short period. Customer
can draw money after giving short notice; this account holder enjoys the same facilities of CD account
including receiving interest on his deposited money. Interest rate of STD is less than the interest rate of
SB account.

Current Deposit (CD) Account has the following properties:

• Opening Amount/ Initial Deposit: Tk. 2,000/-
• Service Charge (yearly): Nil
• Minimum Balance Requirement: Tk. 2,000/-
As per the closing entries-2014 of Uttara Bank Limited:

Particulars Amount(TK)

Current and other accounts etc. 43,951,345,758

Saving bank deposits 28,464,319,302

Fixed deposits 36,849,717,017

Other deposits 2,153,856,351

Total 111,419,238,428

Table: Total Deposits of UBL

 Clearing & Bills Section

The amount of Cheques, Pay Order (P.O), and Demand Draft (D.D) Collection from other banks on
behalf of its customer is a basic function of a Clearing Department.

Clearing is mainly divided by two ways:

 Outward Clearing
 Inward Clearing

Outward Clearing:
 

This is the opposite flow of the Inward cheque clearance. When UBL's cheque sends to other person of other Bank, that Bank will do
the same thing to claim money from Uttara Bank Ltd. With the same procedure like Inward clearing of that Bank. At the time of Outward
Cheque for clearing, the things must have to be checked: The Clearing Seal, The Endorsement Seal, and The Branch Seal.


Inward Clearing:
Whenever any branch of Uttara Bank Ltd. receives a cheque of other Bank to collect money, then the branch sends the cheque to its
Head Office. The Head Office arranges the cheques separately by the name of different bank and then it send to the respective bank for
clearance by the clearinghouse. Those cheques of different Bank to collect money for the ordered person are called Inward Cheque for
clearing. Then these cheques go for entry in to the Inward Registry Book and Database of Clearing Department.

Bangladesh Bank conducts this job of clearing house name Clearing House. This is done twice a day- First house and Return house.
First house is to deliver cheques and collect cheques from other banks. Return house is to return the honored cheques. The practice
among the bank is to give only the name of those cheques, which were not honored.
 Accounts Section
 

The accounts section of UBL does following works:

• Packing of the correct vouchers according to the debit voucher and the credit voucher.
• Recording the transactions in the cashbook.
• Recording the transactions in general and subsidiary ledger.
• Preparing the daily Statement of Affairs showing all the assets and liability of the branch as per General Ledger and Subsidiary
Ledger separately.
• Making payment of all the expenses of the branch.
• Recording inters branch fund transfer and providing accounting treatment in this regard.
• Preparing the monthly salary statements for the employees.
• Preparing the weekly position for the branch which is sent to the Head Office to maintain Cash Reserve Requirement (C.R.R).
• 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.
• Recording of the vouchers in the Voucher Register.
 Loans & Advance Section

The loans and advances of the bank grew impressively during the year 2014 with a growth of
14.45% total loans and advances of Bank stood at Tk.74,198.9 million during the year as compared
to Tk.64,829.8 million of the previous year. Average loan per branch stood at Tk.332.7 million.
Separation of responsibility among risk management, leading decision and monitoring function is
now being implemented more smoothly by the bank with a view to improving the quality and
soundness of loan portfolio. Major sectors where the bank has extended the business are mainly
imports and exports, commercial enterprises, steel Re-rolling Mills, readymade garments. Textiles,
edible oil and cement factory etc. on the other hand Bank continues to extended commercial loan to
the enthusiastic youths and small entrepreneur for various sectors through the different branch on
priority basis during the year. For this purpose bank is disbursing loan in dairy and poultry to
obliterate the poverty and to create employment opportunities for the destitute. The bank disbursed
loan of Tk.391.8 million.
Figure: Sector wise Loans & Advances (%)
 Definition of Foreign Exchange & Foreign Trade

 Foreign Exchange:
Foreign exchange is the rate of exchange in the both country's currency. It a process of converting one nation’s
currency into another and transferring money from one country to other countries. As more than one currency is
involved in foreign trade, it gives rise to exchange of currencies which is known as foreign exchange.

According to Mr. H. E. Evitt, Foreign Exchange is that section of economic science which deals with the means
and methods by which rights to wealth in one country's currency are converted into rights to wealth in terms of
another country's currency. It involves the investigation of the methods by which the currency of one country is
exchanged for that of another country, the forms through which the exchanges may occur and the ratios or
equivalent values at which such exchanges are affected.

 Foreign Trade:
Foreign trade can be easily defined as a business activity, which crosses national boundaries. These may be
between parties or government ones. Trade among nations is a common occurrence and normally benefits both the
exporter and importer. In many countries, international trade accounts for more than 25% of their national incomes.
 Required Documents Foreign Exchange Business
 

The most commonly used documents in Foreign Exchange Business are given below:

• Documentary credit or letter of credit

• Bill of Exchange
• Bill of lading
• Commercial invoice
• Certificate of origin of goods
• Inspection certificate
• Packing list
• Insurance policy
• Proforma invoice/indent
• Master receipt
• G.S.P certificate
 Foreign Exchange Transaction in UBL
 

There are three kinds of foreign exchange transaction:

 Import
 Export
 Foreign Remittance

 Import:
• Opening of letter of credit
• Advance bills
• Bills for collection
• Import loans and guarantees

Export:
 

•Pre-shipment advances
•Purchase of foreign bills
•Negotiations of foreign bills
•Export guarantees
•Advising/confirming letters – letters of credit
•Advance for deferred payments exports
•Advance against bills for collection


Foreign Remittance):
•Issue of F.D.D, T.T, P.O etc.
•Payment of F.D.D, T.T, P.O etc
•Issue and enhancement of traveler’s Cheques
•Sale and enhancement of foreign currency notes
•Non-resident accounts
 Import Section

Import is foreign goods and services purchased by consumers, firms & government in Bangladesh.
An importer must have import registration certificate (IRC) given by chief controller of import and
export (CCI & E) to import anything from other country.

To obtain IRC the following certificates are required :

• Trade License
• Income tax clearance certificate
• Nationality certificate
• Bank solvency certificate
• Asset certificate
• Registration partnership deed (if any)
• Memorandum and Article of Association
• Certificate of Incorporation (if any)
• Rent receipt of the business premises
 Export Section

From the Banker’s point of view- export means sending of visible things outside the country for sale.
Export trade plays a vital role in the development process of an economy. Like importer, exporters are
also required to get them registered before entering into export trade. Export Registration Certificate
(ERC) given by CCI & E is required for this purpose.

When Uttara Bank (authorized dealer) receives a L/C (cable or original) it ascertains the correctness of
the test number and the authorized signature. Then the Bank sends the original copy of the L/C to the
beneficiary. The exporter presents the relative documents to the negotiation Bank after the shipment of
the goods. The L/C issuing Bank undertakes to honor the obligations only if the beneficiary fulfills the
conditions stipulated in the L/C. Even a slight deviation of the documents from these specified conditions
in the L/C may give an excuse to the negotiating Bank. So the negotiating Bank must be careful,
promote, systematic and bias-free while scrutinizing the tender documents after careful examination of
the documents. The Banker has to list out the discrepancies which may be classified as major or minor,
irremovable or removable. The removable discrepancies can be corrected by the tendered or future
losses, which may arise due to non-interpretation of proceeds.
 The following types of discrepancies may be noted while the negotiating Bank examines the documents :

• Expired L/C
• Late shipment
• Amount drawn in excess of the L/C
• Bill of Exchange not properly drawn
• Descriptions of the goods varied
• Bill of landing classified
• Insurance cover not as per terms of L/C
• Insurance cover obtained after the Bill of lading or Air bill date
• Enough number of copies not submitted as required by L/C
• Negotiation under L/C restricted
• Packing list and certificate of analysis not as per L/C
• Documents not properly endorsed
• Ineffective full shipment and part shipment prohibited
• Gross weight and net weight shown in different documents varied
• Some documents required by L/C not submitted
• Documents inadequately stamped
• Document with major discrepancies, which could not be negotiated, should be sent on collection basis with the permission of the
exporter.
 Foreign Remittance Section

Remittance is the act of transmitting money, bills and others as in satisfaction of a demand, or
in discharge of an obligation. UBL is authorized dealer to deal in foreign exchange business.
As an authorized dealer, a Bank must provide some services to the clients regarding foreign
exchange and this department provides these services.

There are two types of remittance. These are:

 Inward Remittance
 Outward Remittance

Inward Remittance:
 

Inward remittance covers purchase of foreign currency in the form of foreign Telegraphic Transfer (T.T), Demand
Draft (DD) and Bills & Travelers Cheque, Export Bill etc. sent from abroad favoring a beneficiary in Bangladesh.
Purchase of foreign exchange is to be reported to Exchange Control Department of Bangladesh Bank from Letter of
Credit (L/C). These are the formal channel of receiving inward remittance. A local Bank also receives indenting
commission of local firm also comes under purview of inward remittance


Outward Remittance:
Outward remittance covers sales of foreign currency by Authorized Dealer (AD) or formal channel through issuing
foreign telegraphic Transfer (T.T), Demand Drafts (D.D), Traveler’s Cheque etc. as well as sell of foreign exchange
under L/C and against Import Bills retired. The demonstrated utmost caution to ensure that foreign currencies remitted
or released by them are used only for the purpose for which they are released. Most outward remittance is approved by
the authorized dealer on behalf of Bangladesh Bank.
 Performance of Export &
Export & Import (Amount in Million)
Import Business of UBL 50000
45870.9
To look after the business and also to 45000

ensure prompt service to the export and 40000

40336.8

import, officers having exposure and 35000

35418.6
33037.6
expertise in foreign exchange business
30000
have been posted both at Head office &
25000
authorized dealers branches. During the
year performance of import business of 20000
15588.5
the bank was satisfactory. In 2014 15000 14192.9 14306
13447.3

import business stood at Tk. 45,870.9 10000

million as compared to the volume of
5000
Tk. 40,336.8 million of 2013. Export
0
business handle by the bank during the 2011 2012 2013 2014
year 2014 amounted to Tk. 13,447.3
Export & Import
million as against Tk. 14,306 million of
the preceding year. Figure: Export & Import Business (2011-
2014)
 Performance of Foreign
Remittance Business of UBL Foreign Remittance (Taka in Million)
60,000.00

Uttara Bank Ltd. has seen a successful year 52,030.20

in 2014 in terms of expansion of its 50,000.00

remittance business with its foreign co- 43,585.60 44,301.30

respondent and exchange house. This Bank 40,000.00 37,848.70

has drawing arrangement with the Bank and

exchange companies situated at the 30,000.00

important countries of the world. In the

meantime the Bank has been able to draw 20,000.00

confidences of Bangladeshi expatriates by

easy and quick delivery of their hard earns 10,000.00

foreign remittance to the payees at home.

The volume of foreign remittance the year 0.00
2011 2012 2013 2014
2014 stood at 52,030.2 million as compare
the volume of taka 44,301.3 million
preceding year registering an increasing of Figure: Foreign Remittance Business (2011-2014)
2.95%.
 Horizontal Analysis

A company's financial statements for a single accounting period can reveal important information
about its performance and financial health. But comparing the financial statements of more than one
period can provide better context and help identify any changes that may signal strengths or
weaknesses. We can compare financial statements for more than one period by using horizontal
analysis. Horizontal analysis, also called "trend analysis," is used to discover trends in the earnings,
assets and liabilities of a company over the course of several years. With horizontal analysis, we
compare the amount changes and the percent change of each item in a financial statement for two
consecutive periods. A financial statement showing horizontal analysis of two consecutive periods is
called a comparative financial statement.
 Horizontal Analysis of Balance sheet
Year (Taka in Million)
Increase or (Decrease)
Particulars 2014 2013
during 2014
Amount Percentage

(%)
PROPERTY AND ASSETS
Cash 10,701.40 8,775.08 1,926.32 21.9%
Balance with other banks and financial 1,012.27 1,419.78 (407.51) (28.7%)
institutions
Investment 42,787.91 45,749.48 (2,961.57) (6.5%)
Loans and Advances 74,198.91 64,829.76 9,369.15 14.5%
Fixed assets including land, building, 3,351.96 3204.27 147.69 4.6%
furniture and fixtures
Other Assets 7,963.27 7,456.27 507 6.8%
Total Assets 140,547.01 132,110.04 8436.97 6.4%
LIABILITIES AND CAPITAL
Deposits and other accounts 113,836.74 110,989.82 2,846.92 2.6%
Other liabilities 12,425.36 10,363.23 2,062.13 19.9%
Total Liabilities 128,330.43 121,408.90 6,921.53 5.7%
Total Share Holders’ Equity 12,216.54 10,701.11 1,515.43 14.2%
Total Liabilities and Share Holders' 140,547.01 132,110.04 8,436.97 6.4%
 Interpretation of Horizontal Analysis of Balance sheet

In above analysis, FY2013 is the base year and FY2014 is the comparison year. All items on the
balance sheet for the year 2014 have been compared with the items of balance sheet for the year
2013.
The total cash of Uttara Bank Limited have increased by 21.9% in FY2014 as compared to FY2013.
While current liabilities (Deposits and other accounts) have increased only to the extent of 2.6%.
This indication of liquidity position of the bank is highly satisfactory.
The fixed assets including land, building, furniture and fixtures have increased by 4.6% compared to
FY2013. At the same time, total share holders’ equity (long-term liabilities, capital and reserve) have
considerably increased by 14.2%. It is observed that overall financial position of Uttara Bank
Limited concern is good.
 Horizontal Analysis of Profit & Loss Account

Year (Taka in Million)

Increase or (Decrease)
Particulars 2014 2013
during 2014
Amount Percentage

(%)
Net Interest Income 2,179.69 958.68 1,221.01 127.4%
Total Operating Income 7,918.34 6941.01 977.33 14.1%
Total Operating Expenses 4,082.26 3,791.08 291.18 7.7%
Profit Before Provision 3,836.08 3,149.93 686.15 21.8%
Profit Before Tax 2,926.08 2,694.93 231.15 8.6%
Profit After Tax 1,404.25 1,319.47 84.78 6.4%
Profit Available for Appropriation 1,447.65 1,342.67 104.98 7.8%
 Interpretation of Horizontal Analysis of Profit & Loss
Account

In above analysis, 2013 is the base year and 2014 is the comparison year. All items on the balance
sheet for the year 2014 have been compared with the items of balance sheet for the year 2013.
From the above horizontal analysis of Profit and Loss Account, it is observed that the net interest
income has increased to the extent of 127.4%. The total operating income and its percentage
increased by 14.1%. Total operating expenses has been increased by 7.7%. Profit before provision
and profit before tax also have been increased by 8.6% and 6.4% respectively. As a result, the rate of
net profit (profit after tax) is also increased to the extent of 6.4%. This indicates that the overall
profitability concern of Uttara Bank Limited is good.
 Vertical Analysis

Vertical analysis is a financial statement analysis technique in which each line item of a financial
statement, usually balance sheet and income statement is stated as percentage of the base figure of
the financial statement. Vertical analysis may also be performed on a cash flow statement. The base
figure is total assets in case of balance sheet, total revenue in case of income statement and total net
cash flow in case of a cash flow statement.
The most common use of vertical analysis is within a financial statement for a single time period, so
that one can see the relative proportions of account balances. Vertical analysis is also useful for
timeline analysis, to see relative changes in accounts over time, such as on a comparative basis over
a five-year period. For example, if the cost of goods sold has a history of being 40% of sales in each
of the past four years, then a new percentage of 48% would be a cause for alarm.
 Vertical Analysis of Balance Sheet
Year (Taka in Million)
Particulars 2014 2013
Amount Percentage Amount Percentage

(%) (%)
PROPERTY AND ASSETS
Cash 10,701.40 7.6% 8,775.08 6.6%
Balance with other banks and financial 1,012.27 0.7% 1,419.78 1.07%
institutions
Investment 42,787.91 30.4% 45,749.48 34.6%
Loans and Advances 74,198.91 52.8% 64,829.76 49.1%
Fixed assets including land, building, 3,351.96 2.4% 3204.27 2.4%
furniture and fixtures
Other Assets 7,963.27 5.7% 7,456.27 5.6%
Total Assets 140,547.01 100% 132,110.04 100%
LIABILITIES AND CAPITAL
Deposits and other accounts 113,836.74 81% 110,989.82 84%
Other liabilities 12,425.36 8.8% 10,363.23 7.8%
Total Liabilities 128,330.43 91.3% 121,408.90 91.9%
Total Share Holders’ Equity 12,216.54 8.7% 10,701.11 8.1%
Total Liabilities and Share Holders' 140,547.01 100% 132,110.04 100%
Equity
 Interpretation of Vertical Analysis of Balance
sheet

Above analysis represent the vertical analysis of Uttara Bank Ltd.’s comparative balance sheets. The
base for the property and asset items is total assets. The base for the liability and shareholders’
equity items is total liabilities and share holders' equity
From the above analysis, we can see that cash increased to 7.6% of total assets in FY2014 from
6.6% in FY2013. Fixed assets (land, building, furniture and fixtures) of both the year are same. The
total cash of Uttara Bank Limited have increased by 21.9% in 2014 as compared to FY2013. While
current liabilities (Deposits and other accounts) have decreased from 84% of total liabilities and
share holders' equity in FY2013 to 81% in FY2014. Total share holders’ equity has increased
slightly from 8.1% to 8.7% of total liabilities and share holders' equity. It is observed that overall
financial position of Uttara Bank Limited concern is good.
 Vertical Analysis of Profit & Loss Account

Year (Taka in Million)

Particulars 2014 2013
Amount Percentage Amount Percentage

(%) (%)
Net Interest Income 2,179.69 100% 958.68
100%
Total Operating Income 7,918.34 363.3% 6,941.01
724%
Total Operating Expenses 4,082.26 187.3% 3,791.08 395.4%
Profit Before Provision 3,836.08 176% 3,149.93 328.6%
Profit Before Tax 2,926.08 134.2% 2,694.93 281.1%
Profit After Tax 1,404.25 64.4% 1,319.47 137.6%
Profit Available for Appropriation 1,447.65 66.4% 1,342.67 140.1%
 Interpretation of Vertical Analysis of Profit & Loss Account

Above analysis represent the vertical analysis of Uttara Bank Ltd.’s income statement. The base item
for profit and loss account is net interest income.
From the above vertical analysis of Profit and Loss Account, it is observed that the total operating
income as a percentage of net interest income declined 360.7% (724% vs. 363.3%) and total
operating expenses declined 208.1% (395.4% vs. 187.3%). Profit before provision and profit before
tax as a percentage of net interest income declined by 152.6% (328.6 vs. 176) and 146% (281.1%
vs. 134.2) respectively. As a result, it is not surprising to see that net profit (profit after tax) is also
declined 73.2% (137.6% vs. 64.4%).
 Ratio Analysis

A tool used by individuals to conduct a quantitative analysis of information in a company’s financial

statements. Ratios are calculated from current year numbers and are then compared to previous
years, other companies, the Industry, or even the economy to judge the performance of the company.
The basic inputs to ratio analysis are the firm’s income statement and balance sheet for the periods
to be examined. Ratio analysis is predominately used by proponents of fundamental analysis
 Current Ratio

One of the most general and frequently used of these liquidity ratios is the current ratio.
Organizations use current ratio to measure the firm’s ability to meet short-term obligations. It shows
the bank’s ability to cover its current liabilities with its current assets. The higher the current ratio,
the better the liquidity position of the firm. It is expressed as:

Current Ratio = Current Asset/Current Liabilities

Year 2010 2011 2012 2013 2014

Current 0.77 1.04 1.11 1.04 0.98
Ratio

Source: Annual Report of UBL

 CURRENT RATIO

Interpretation:
1.11

The higher the current ratio; the more liquid the 1.04 1.04

firm is considered to be. But UBL, Current ratio is 0.98

not good because it maintains 0.98 Tk. current assets

against 1 Tk. current liabilities whereas normally
0.77
banking industry maintains 1:1 current ratio. This
graph shows that, the current ratio is decreasing year
by year.

2010 2011 2012 2013 2014

Figure: Current Ratio

 Net Working Capital

Net working capital, although not actually a ratio is a common measure of a firm’s overall liquidity.
Net working capital is calculated as :

Working capital=Current Asset-Current Liabilities

Year 2010 2011 2012 2013 2014

Working -729.41 2085.43 3611.90 1540.70 -672.82
Capital

Source: Annual Report of UBL

 Working capital


Interpretation: 3611.9
Net working capital of UBL gradually decreasing
in year by year. However, the bank cannot able to
meet up its current obligations.

2085.43

1540.7

2010 2011 2012 2013 2014

-729.41 -672.82

Figure: Working
Capital
 Cost Income Ratio

It measures a particular Bank’s operating efficiency by measuring the percent of the total operating
income that the Bank spends to operate its daily activities. It is calculated as follows :

Cost Income Ratio=Total operating Expenses/Total Operating Income

Year 2010 2011 2012 2013 2014

Cost 49.86% 52.23% 53.36% 45.09% 45.42%
Income
Ratio

Source: Annual Report of UBL


Interpretation:  
COST INCOME RATIO
We know that this ratio measures the operating 56.00%
efficiency of the bank by measuring the portion if
the total operating costs relative to the total 54.00%
53.36%
operating income of that bank and the higher the 52.23%
52.00%
ratio, the lower the operating efficiency. In
FY2012 the operating cost of UBL Bank Ltd. is 50.00%
49.86%
high but after that it decreasing. So it can be said
48.00%
that the operating efficiency of the UBL Bank Ltd.
is in good position that is they are able to 46.00%
45.09% 45.42%
minimize their operating.
44.00%

42.00%

40.00%
2010 2011 2012 2013 2014

Figure: Cost Income Ratio

 Total Asset Turnover Ratio

The total asset turnover indicates the efficiency with which the firm is able to use all its assets to
generate sales. It is expressed as:

Total Asset Turnover= Operating Income/Total Assets

Year 2010 2011 2012 2013 2014

Total Asset 0.056 0.059 0.059 0.068 0.064
Turnover

Source: Annual Report of UBL

 Total Asset Turnover Rati o

Interpretation:
The Bank total asset turnover ratio in FY2010-

0.07
FY2013 that is 0.056- 0.068 which means 5.6 to 6.8

0.06
times. We know the greater the total asset turnover; it

0.06

0.06
0.06
is more efficient and 4 to 6 times is slandered
position but also depends on industry. But UBL is
total asset turnover ratio is increasing day by day but
in FY2014 its decreasing which is not good sign.

2010 2011 2012 2013 2014

Figure: Total Asset Turnover Ratio

 Price Earnings Ratio

The price or earning (P/E) ratio is commonly used to assess the owners’ appraisal of share value.
The P/E represents the amount investors are willing to pay for each dollar of the firm’s earnings.
The higher the P/E ratio, the greater the investor confidence in the firm’s future. The price Earning
(P/E) ratio is calculated as:

Price Earnings Ratio = Market price per share of stock/Earning per share

Year 2010 2011 2012 2013 2014

Price 30.76 15.59 11.21 9.48 7.46
Earnings
Ratio

Source: Annual Report of UBL

 Price earnings ratio

Interpretation:
The graph shows that, price earnings ratio of UBL’s is
30.76
continuously decreasing from FY2010 to FY2014. As a
result, it is not surprising to see that UBL’s price
earnings ratio is not in good position.

15.59

11.21
9.48
7.46

2010 2011 2012 2013 2014

Figure: Price Earnings Ratio

 Return on Assets (ROA)
The return on asset (ROA), which is often called the firm’s return on total assets, measures the
overall effectiveness of management in generating profits with its available assets. ROA ratio is
very important tools for measuring the profitability of a bank. The higher the ratio is better for the
bank. The return on assets (ROA) is calculated as follows:

Return on Asset (ROA) =Net Profit after tax (net income)/Total Asset

Year 2010 2011 2012 2013 2014

Return on 0.02% 0.02% 0.01% 0.01% 0.01%
Assets

Source: Annual Report of UBL

 Return on Assets

Interpretation:
The graph shows that, The ROA ratio of UBL of
FY2010 (0.02%) and FY2011 (0.02%) maintained the 0.02% 0.02%
same figure. Then it slightly decrease in FY2012
(0.01%) and FY2013 and FY2014 also maintained the
same figure.

0.01%

0.01%

0.01%
2010 2011 2012 2013 2014

Figure: Return on Asset

(ROA)
 Return on Equity
(ROE)
The return on equity measures the return earned on the owner’s (both preferred and common
stockholders’) investment. It is also very important tools for measuring the profitability of a bank.
Generally, greater ROE ratio is better for the bank. It is expressed as follows :

Return on Equity (ROE) = Net Profit after tax (net income)/Shareholders equity

Year 2010 2011 2012 2013 2014

Return on 18% 17% 13% 12% 11%
equity

Source: Annual Report of UBL

 R e t ur n on e qui t y

Interpretation:
The ROE ratio of UBL is in declining trend from FY2010
to FY2014. The highest ROE ratio in this period was 18%
in FY2010 and lowest ROE ratio was 11% in FY2014.

18%
17%

13%
12%
11%

2010 2011 2012 2013 2014

Figure: Return on Equity (ROE)

 Net Profit Margin
The net profit margin measures the percentage of each sales dollar remaining after all expenses,
including taxes, have deducted. The higher the firm’s net profit margin is better. The net profit
margin is a commonly cited measure of the company’s success with respect to earnings on sales.
Net profit margin is calculated as follows:

Net Profit Margin= Net Profit after tax (net income)/Operating income

Year 2010 2011 2012 2013 2014

Net Profit 0.04 0.09 0.13 0.28 0.24
Margin

Source: Annual Report of UBL

 Net Profit Margin

Interpretation:  

The Bank net profit margin in 2010-2013 that is 0.04- 0.28

0.28 which indicates that profit margin is increasing day
by day and its good situation. But in 2014 UBL’s net 0.24
profit margin is decreasing which indicates that the
banks profit is decreasing.

0.13

0.09

0.04

2010 2011 2012 2013 2014

Figure: Net Profit Margin

 Debt Ratio

The debt ratio measures the preparation of total assets provided by the firm’s creditors. Debt ratio is
expressed as follows:

Debt Ratio= Total Liabilities/Total Assets

Year 2010 2011 2012 2013 2014

Debt Ratio 0.95 0.95 0.95 0.94 0.91

Source: Annual Report of UBL

 DEBT RATIO

Interpretation: 0.96
This graph shows that, the debt ratio of Uttara Bank
0.95
Ltd. from FY2010-FY2012 maintained the same figure.
Then it slightly decreased in FY2013 (0.94) and also in
0.94
FY 2014 (0.91). Their debt ratio were decreasing trend
that indicates positive sign.
0.93

0.92

0.91

0.9

0.89

0.88
2010 2011 2012 2013 2014

Figure: Debt
Ratio
 Equity Multiplier (EM)
Equity Multiplier (EM) is very important indicator of evaluating a company’s ability to use its debt
for financing its assets. EM ratio is also known as the financial leverage ratio. A higher equity
multiplier indicates higher financial leverage, which means the company is relying more on debt to
finance its assets. Equity multiplier ratio is calculated as follows:

Equity Multiplier (EM) = Total assets/Shareholder’s equity

Year 2010 2011 2012 2013 2014

Equity 9.46 10.11 12.64 12.40 11.56
Multiplier

Source: Annual Report of UBL

 Equity Multi plier

Interpretation:
This graph shows that, equity multiplier (EM)
ratio of UBL is continuously increasing from
FY2010 (9.46) to FY2012 (12.64) which was bad
sign for a bank. But then it slightly decreased in
FY2013 (12.4) and also in FY2014 (11.56). So,
we observe that, now bank is relying less on debt
to finance its assets in recent years which is good
sign for a bank. The highest EM ratio was 12.64 12.64 12.4
11.56
in FY2012 and the lowest EM ratio was 9.46 in 10.11
9.46
FY2010.

2010 2011 2012 2013 2014

Figure: Equity Multiplier

(EM)
 Time Interest Earned Ratio
The times interest earned ratio, sometimes called the interest coverage ratio, measures the ability to
meet contractual interest payment that means how much the company able to pay interest from their
income. Times interest earned ratio is expressed as follows:

Time Interest Earned Ratio =Earnings before interest and Taxes/Interest

Year 2010 2011 2012 2013 2014

Time 1.11 1.49 1.61 1.95 1.78
Interest
Earned
Ratio

Source: Annual Report of UBL

 Time Interest Earned Ratio

Interpretation:
2.5
Time Interest Earned Ratio on UBL’s is highly
satisfying. Because, it’s increasing year by year
but in FY2014 it was slightly decrease to 1.78. So 2 1.95
1.78
UBL should maintain this ratio by minimizing its
1.61
operating costs in order to get adequate earnings 1.49
to satisfying interest obligations. 1.5

1.11
1

0.5

0
2010 2011 2012 2013 2014

Figure: Time Interest Earned Ratio

 Investment to Deposit Ratio
Investment to Deposit Ratio shows the operating efficiency of a particular Bank in promoting its
investment product by measuring the percentage of the total deposit disbursed by the Bank as long
and advance or as investment. The ratio is calculated as follows:

Investment to Deposit Ratio=Total investment/Total Deposit

Year 2010 2011 2012 2013 2014

Investment 0.221 0.242 0.332 0.221 0.379
to Deposit
Ratio

Source: Annual Report of UBL

 Investment to deposit ratio

Interpretation: 0.4

Investment to deposit ratio shows that which 0.35

amount of deposit is used to as investment.
Investment to deposit ratio of Uttara Bank Ltd. 0.3
is increasing last year. That means, Bank is
0.25
properly utilizing their deposit.
0.2
0.38
0.33
0.15
0.24
0.22 0.22
0.1

0.05

0
2010 2011 2012 2013 2014

Figure: Investment to Deposit

Ratio
 Acid-Test Ratio
The acid-test (quick) ratio is a measure of a company’s immediate short-term liquidity. It is
computed as follows:

Acid-Test Ratio= Current Assets-Inventory/Current Liabilities

Year 2010 2011 2012 2013 2014

Acid-Test 0.77 1.04 1.11 1.04 0.98
Ratio

Source: Annual Report of UBL

 ACID-TEST RATIO

Interpretation:
1.11
This graph shows that, acid-test ratio of UBL is 1.04 1.04
continuously increasing from FY2010 (0.77) to 0.98
FY2012 (1.11). But then it slightly decreased in
FY2013 (1.04) and also in FY2014 (0.98). The
0.77
highest acid-test ratio was 1.11 in FY2012 and the
lowest EM ratio was 0.77 in FY2010.

2010 2011 2012 2013 2014

Figure: Acid-Test Ratio

 Critical Observation & Findings

 Lack of Dynamic and Prompt Customer Service:

Since a number of new banks are coming to existence with their extended customer service pattern in
a completely competitive manner. Customer services must be made dynamic and prompt. Therefore
Uttara bank should think sincerely about the renovation of their customer service and facilities which
will be more attractive and innovative rather than traditional one.

 Lack of Proper Division of Labor and Man Power:

There is lack of division of labor in Uttara Bank Ltd. Therefore everybody has to handle every type of
banking services. Moreover if one personnel is absence in a department then extra burden will fall to
another. This decreases the level of performance of the personnel.

 Lack of Computer Knowledge:

All the organizations including banks are now mostly depends on computer but employees of Uttara
Bank Limited do not have much knowledge on computer.

Shortage of Availability of Machineries:
 

There are shortages of photocopy and printing machine in UBL therefore most of the time employees activities are hampered for
maintaining serial as well as it create gathering on their short space.


Lack of Effective Advertising and Promotion:
Advertising and promotion is one of the weak point of Uttara Bank Limited, Uttara Bank Limited does not have any effective
promotional activities through advertisement, but other banks have better promotional strategy.


No Desk and Specific Task for Internee:
Uttara bank doesn’t arrange any desk and fixed any task for their internee. Therefore they don’t get any chance to learn banking
activities by doing practical task. It is not possible for any fresh graduate to learn banking activities by getting few lecture from
specific personnel rather if they involve them to some specific activities it would be easy for them to learn more and fell confident
to perform any activities properly. Moreover as they do not pay any allowance to internee so some time it does not motivated them
to present and learn eagerly.
 Recommmendations
 Renovation of Customer Service:
• The working process more faster with better computers and operating systems.
• Trained, experienced, smart, knowledgeable as well as intellectual personnel to provide fastest and the best
services
• More Gifts, Discounts as well as differentiated interest rates on several loan and deposit schemes for the
Premium Customers.

 Ensure Proper Division of Labor and Man Power:

The human resource departments of Uttara bank have to ensure proper division of labor in desk for
handling the rash of customer in an efficient way. Therefore based on importance and work load they have
to ensure proper division of labor.

 Ensure Proper Promotional Activities:

They must prepare an organized set of plan regarding the advertising and promotional activities which
should include billboards, internet advertising and sponsorship. The sales team and officers should provide
periodic training on interacting and dealing with different classes of potential and existing customers.

Ensure Proper Compilations & Maintenance of Files:
 

Ensuring proper customer service is a continuous process in banking business. To know customer, maintain interaction,
conducting banking activities and for the security purposes the file maintenance of individual client is most important.
Therefore both management and all personnel should more conscious about the proper compilations as well as decoration
for keeping important files There.


Ensure Proper Promotional Activities :
Management of the bank has to provide time to time recognition of their employee. Moreover short probationary period
and on time promotion motivated the employee to perform well in their day to day activities. But the most important thing is
the overall motivational activities should be proceeding under fair judgment based on performance rather internal politics.


Ensure Internship Desk and Specific Task :
Uttara Bank Limited is renowned for the internship. So bank should provide the internship desk and some specific task
for gathering some real life experience which they can utilize in their future job.
 Conclusion
As an organization the Uttara Bank Limited has earned the reputation of top banking operation in
Bangladesh. It is relentless in pursuit of business innovation and improvement. Its number of
clients/ amount of deposit and investment money increases day by day. This bank already has
shown impressive performance in Foreign Exchange Business.
Uttara bank introduced a specialized banking service in Export Import business. With a bulk of
qualified and experienced human resource, the Uttara Bank can exploit any opportunity in the
banking sector.
Uttara Bank Ltd. is pioneer in introducing many new products and services in the banking sector
of the country. But it faces continuous challenge from the local private banks and foreign banks,
which mainly specialize in the consumer banking. As a result, it has to develop new products and
services to ease the competition on a continuous basis.
Local Office (Motijheel, Dhaka) is one of the biggest and most potential branches of Uttara
Bank. It has a large portfolio with huge assets to meet up its liabilities and the management of this
office is equipped with the expert bankers and managers in all level of management. So it is not an
easy job to find out the drawbacks of this office.
THANK YOU