Corporate Structure of United commercial bank
United commercial bank started its journey in the year 1983 with an initial paid-up capital of TK 35.50 million with the object of excellence in customer service with pleasure and happiness. Its vision is to be the bank of first choice in all terms, sustainable inclusive business growth by ensuring efficiency, regulatory compliance, good asset quality, combination of experience and professional talents, consistent profitability and of course good governance. The formally started its commercial operation on 27 June in the same year. During the year 2012 the bank set record indeed in terms of advance, deposit and expansion of business through its continuous diversification. The bank obtained license to open offshore unit on June 9, 2010. As on December 31, 2012 the bank feel proud of having 131 branches and 81 ATM throughout the country. Eight more branches are in the offing to be opened in the year 2013 as approved by Bangladesh Bank.
As a fully licensed commercial bank, UCBL is being managed by a highly professional and dedicated team with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition.
UCBL offers all kinds of Commercial Corporate and Personal Banking services covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. Diversification of products and services include Corporate Banking, General Banking Retail Banking and Consumer Banking right from industry to agriculture, and real state to software.
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.
United Commercial Bank, 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.
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.
To offer financial solutions that create, manage and increase our clients wealth while improving the quality of life in the communities we serve.
- 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.
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 they believe that if we work together we can achieve everything.
Group Corporate structure:
The bank has two subsidiaries – UCB Securities Limited established in January 2010 with the objective of providing stock brokerage and other related services and UCB investment Limited established in august 2011 with a vision to be leading merchant bank in the country. The bank has also obtained permission for opening of off-shore banking unit. Presently the bank has one unit in Dhaka in full pledged functioning which formally commenced its operation on 10 November 2010.
Continuous improvement in:
- Business Policies
- Efficient through integration of technology at all levels.
Sustainable development is not possible without continuous diversification of business. UCB’s core competencies may be classified into two segments interest earning activities in the form of providing loans and advances and investment activities.
Interest earning activities:
United commercial bank has an attractive basket of loan product which covers time loan, project finance, overdraft facility, cash credit, home loan, car loan, lease finance and many more.
Local and foreign trade activities:
United commercial bank facilities its valued clients in their local and foreign trade activities i.e. import and export business. These import and export business are one of the significant revenue generating segments of UCB.
UCB also facilitates inward and outward remittance facilities to expatriates, different organizations and individuals through branches, agents and correspondences.
UCB provides financial guarantee to different individuals and organizations which is also importance source of commission earning of the bank.
- Money market: the bank invests in the treasury bills and bond which is considered as secured investment and ensures a certain amount of return of the bank. Considering the liquidity position the bank also participates in the call money market.
- Capital market: the bank has significant presence in the capital market through direct equity participation. The bank has also two subsidiaries with an aim to active participation in capital market through brokerage, portfolio management, investment banking etc.
To provide the most courteous and efficient service in every aspect of its business. To be innovative in the development of new banking products and services.
By promoting good staff morale through proper staff training and development, and provision of opportunities for career development.
By forging ahead and consolidating its position as a stable and progressive financial institution.
By generating profits and fair return on their investment.
By assuming our role as a socially responsible corporate citizen in a tangible manner by adhering closely to national policies and objectives thereby contributing towards the progress of the nation.
By upholding ethical values and best practices.
The strategic priorities of United Commercial Bank Limited are-
- To make all the stakeholders happy and to make the entire banking process an enjoyable experience for everyone.
- To be compliant with all the rules and regulations.
- To foster creativity, innovation and diversity with the view to sustainable business growth.
- Continuous development without compromising needs for future generation.
- To ensure satisfaction of all the UCB’s customers through delivering services with the implementation of world class IT infrastructure.
- To establish good governance.
- Ensuring effective risk management system within entire phases of activities.
- Focusing on corporate social responsibilities (CSR) in a responsible manner.To build and enhance brand image.
Ethics, Integrity and Trust
Banking deals with public money where Ethics, Integrity and Trust is utmost important. United Commercial Bank upholds these principles in every section by its management and customer service. The following are the key principles of Employee codes of Ethics and Business conduct.
- Provide service to customers with uncompromising integrity, utmost respect, unwavering responsibility and dedicated citizenship.
- Protect privacy and confidentiality of customer information.
- Prevent money laundering and fraud.
- Demonstrate workplace respect.
Corporate social responsibilities
As one of the leading bank UCB acknowledge their responsibilities toward the society as a whole in which we live. We care for all stakeholders, ethical functioning, and respect for employee’s rights and welfare, respect for human beings, respect for environment and disseminate information on CSR policy. UCB participates in social development, education, health, sports, environment etc.
Departments of United commercial Bank
Corporate banking is the center of all corporate leading operations of UCBL. It controls all of the 130 branches of UCBL. Several strategic business units (SBUs) are working under this corporate banking unit. Corporate banking unit consist all regular departments such as general banking, retail banking, card division, cash division including some major departments which are not available in other branches. Those are Human resource department, internal AUDIT running group, general banking development division (GBDD), general service division which insures office equipment purchase and establishment of new department. It also has departments like finance accounts division and general accounts division which main operations are check-out the operating functions of all 131 branches around Bangladesh. It observes the profit, loss of the branches and its working system.
General banking division:
This is the major division of any bank. Various types of works are conduct here and major part of the total profit is coming from this department. Account opening, clearing process of inward and outward cheques, online money transfer and different types of savings offer and maintenance are dealing in this division.
UCB retail banking plays an important role to fulfill the lifestyle need of its customers. Be it deposit to ensure safely in future or a loan to fulfill the future need now, UCB retail offers a range of products to their customers, so that they can live their dreams.UCB strives to bring quality beat practices by being different in fields like consumer lending, liability management and cash management. At present time customer prefers to have the services at their door steps.
To ensure that we have created a well trained direct sales team who take the services to the door steps to our customers. This is one of the pioneer bank which finance home loan all over the country where in most of the banks confined their finance in metro areas only. More than 2200 homes all over the country have been lightened up with happiness through our home finance.
With all possible like personal loan, home loan, auto loan, marriage loan, education loan travel loan, house hold durable loan retail banking portfolio stand at BDT 10,697 million at the end of 2012 against BDT 8,430 million in 2011.
UCB has started credit card operation in 2006 by introducing VISA branded dual currency credit card. The bank has issued more than 50,000 credit cards and has extended its services in divisional and district cities like Dhaka, Chittagong, Sylhet, Khulna, Rajshahi, Barisal, Comilla, Bogra. UCB is the principal member of VISA international. UCB stared its own ATM network in 2009 and has already established 81 ATMs throughout Bangladesh. Another 23 ATMs are to be added to the network by the end 2013. The bank has issued more than 60,000 Debit cards and project is underway for the introduction of pre-paid cards. Today the banks card services are available from all branches across the country. The bank also has different types of credit cards with various limits and features. The bank has introduced special value added services to its Gold Card holders, special discount at selected stores and restaurants and business class airport lounge facilities for outgoing passengers.
Remittances have emerged as a key driver of economic growth and poverty reduction in Bangladesh. Revenues from remittances now exceed various types of foreign exchange inflows, particularly official development assistance and net earnings from export. Considering the role of foreign remittance in the overall economic development of the country the bank has set top priority for mobilizing inward foreign remittance from Bangladeshi migrant workers living and working abroad. The bank has restructured its existing remittance set up with skilled and efficient manpower in order to provide seamless delivery of remittances to the beneficiaries through Banks 130 branch network in strategic locations. Furthermore the bank has also taken initiative to strengthen ties with the exchange companies with whom the bank has arrangement with through strong relationship management and has also taken initiatives to enter into new arrangements with other exchange companies having potential to send higher volume of inward foreign remittance. Up to 31 December 2012, the bank has established relationship with lending exchange companies in Bahrain, France, KSA, Kuwait, Oman, Qatar, UAE and UK. In additional the bank has remittance agreement with global remittance company like western union.
SMS banking service:
SMS banking is another new feature of UCB. It gives customers the opportunity to check out their account balance in their mobile. Through this service individual can see their available account balance and drawing account balance. The process for SMS banking as follows:
- First one should have to have an account in UCB bank. Then he/ she has to fill-up an application form in request to have SMS banking service.
- The bank may require three working days after receiving the application form for activation of the service.
- The account holder is solely responsible to stop misuse of SMS banking services and also to maintain the confidentiality of his/her financial information by ensuring safe holding of the mobile phone/ connection assigned to SMS banking service provided by UCB. If the mobile phone/ connection is lost, stolen or sold to another individual, the account holder shall immediately notify the bank and cancle the SMS banking service.
The account holder hereby agrees that UCB shall not be responsible for any disruption in SMS banking service due to any mechanical failure on the part of UCB/ mobile phone service provider. Registration form should be submitted to the branch, where the account is maintained.
- SMS banking service shall remain effective until otherwise advised in writing by the account holder. Operations at General Banking Division of UCBL Page 15 • The bank may revise and/ or change any of the terms and condition at any time with notice to you but does not require any consent.
- By providing SMS Banking Service United Commercial Bank may collect service charge from the linked account. United Commercial Bank may revise and/or change the service charge at any point of time.
Foreign exchange department: Foreign exchange department of united commercial bank is responsible for dealing with foreign trade affairs such as dollar endorsement, visa processing in some counties, buying and selling of foreign currencies. One of the major activities of foreign exchange department is processing of L/C (Letter of Credit). United commercial bank gives loan to garment factory. These loans are under control by this department. Export, import and L/C’s of these garment factories are done by foreign exchange department of UCB. In short the garment factories who take loans from UCB having an agreement that all of their foreign activities will be done and control by the bank.
OPERATIONS AND DEPARTMENTS AT KHAN ZHAN ALI ROAD BRANCH, KHULNA
United Commercial Bank has two branches at Khulna, one Khulna Branch and second Khan Zhan Ali Road Branch. I got an opportunity to do my internship at United Commercial Bank at Khan Zhan Ali Road Branch. It’s a small and newly open branch at Khulna. So it does not have all operations and departments like their Head office and Principle branch. The branch has five division or departments which run through the instruction and control from Head office, principle branch and Khulna branch. The divisions or departments are as follows:
- Cash division.
- General banking division
- Credit or advance division ( loan department)
- Retail banking division and
- Card division
My supervisor Md. Mhabube Faruquee (head of branch and assistant vice president) has assigned me to do my internship at general banking division. All of the officers including my supervisor were very humble and helpful. Whenever I asked them any question or any information regarding their banking operations they tried to help me. Now I am going to explain the operations of different divisions of Khan Zhan Ali branch.
It is the most important division of any bank as well as Khan Zhan Ali Road 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 or cheque, payments of electricity bills, payments of pay-order etc are major functions of cash division. This department also collects cash remittance by depositing day to day cash surplus money to Bangladesh bank through their Khulna branch.
Credit or advance division (loan department):
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 or advance division deals with loan processing function. All of the procedures regarding loans are dealing in this department. As it’s a small branch of UCB most of the loans are sanctions from here is SME (Small and Medium Enterprise) loans and personal loans. Industrial and project loans are sanction from head office or principle branch. 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. For example: if ABC enterprise applies for loan amount of 5, 00,000 Lac taka, after verification the bank give limit of 4, 00,000 Lac taka (depending on the business of organization financial performance). 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 direct sales officers (DSO) 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 DSO has particular target according to their position. They have to open fifty accounts per month.
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. Process and particulars for doing Debit card:
- At first one has to open an account in the bank.
- One copy of National identification card.
- One copies of passport size photo.
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 basis salary should have to be 15000 tk. According to the monthly income /salary credit card limit has to 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.
Documents for applying credit card:
- Account in UCB bank
- Bank statement from last six months.
- National identification card copy.
- For service holder salary statement, job ID card copy, visiting card copy, joining letter copy, authorized letter copy from Human resource department where the person works.
- For business man/ woman bank statement, ID card copy, trade license, TIN certificate, visiting card, electricity bill or phone bill in the name of the customer.
- Two copies of passport size photo.
I started my internship in this branch I was overwhelmed by knowing that I am a part of this renowned branch for three months. The duration of my internship was from 1st July to 1st During the three months of my internship I have done several types of work in the General Banking department. In United commercial Bank Limited I have performed a number of tasks. I tried my level best to perform all the jobs very well.
October. I enjoyed myself working over there a lot because the environment was immensely friendly and all of the employees are very much co-operative with each other. As an intern every day I had to report to Head of branch Md. Mhabube Faruquee and senior officer Rumana Rahman supervised me all through my whole internship period.
Outward and inward Cheque Receive
“Outward clearing Cheque” means collection of United Commercial Bank’s own customers’ cheques from other bank’s customers’ account. On the other hand “inward clearing Cheques” means collection of other banks cheques to United Commercial bank. When I started my internship in United Commercial Bank Limited (Khan Jahan Ali road, Branch, Khulna) then Mosharof Hossain (Junior Officer) explain me the whole outward clearing process very cordially but I was not much clear until I did this by myself.
The whole clearing process is done through United Commercial Bank’s own clearing software named “Flora Automated Cheque Clearing”-software. Before doing the clearing tasks through the software there are also some manual tasks to do. First of all I usually received cheque for respective client after making sure that the cheque has all documents such as- depositors sign, Account Number, Account Name, Account holder’s contact number etc. Then I used to give crossing over the cheque and a sign to the depositors copy. It is also necessary to identify the nature of the cheque. For example: whether it is high value cheque or not. Normally Taka 5, 00,000 cheque is considered as high value cheque. High value cheque which received before 11 am on a particular day is considered as same day cheque. All other cheques are not same day cheque. For high vale clearing cheque UCB charges 60 taka and for regulaer vale it charges 10 taka only as online transaction charge. All other clearing procedures are done by clearing in charge. Bangladesh Bank’s cheques are manually sent to the Bangladesh Bank Khulna branch by branch messenger.
I also had to keep the register updated. This register contains all the data of a particular day cheque receipts. I had to write the name of the bank, cheque number and amount of the cheque.
Record the number of pay-order issued every day
Every day United Commercial Bank issued a good number of pay orders. Pay- order is a kind of transaction tool of a bank that is safer than a cheque. A check can be bounce if there is no money in the payer’s account but when a payer issue a pay -order to the payee than he must credit his account with the amount of money that is mentioned in the pay-order by giving cash or by transferring money to the account. Then United Commercial Bank debited the payer’s account and credited the payee’s account. I was supposed to write down the pay-orders and my supervisor credited and debited the account by using their own PC bank software.
These transactions need to be recorded in a particular register copy. In United Commercial Bank (Khan Jahan Ali Branch) it was my duty to record everyday’s number of pay-orders issued. In the register copy, I used to write the payer’s name, payee’s name, amount of the pay-order serially by seeing the pay-order block of the bank.
Updating Voucher Register
I was also responsible to update daily voucher. I had to count debit and credit voucher of different account such as- Current Account, Savings Account, FDR/STD Account, SOD Account, Income and Expenditure Account, Bills payable, Sundry deposit, Foreign Exchange Account and others. I had count the debited and credited voucher of these following accounts.
Give “Return” cheques to the clients
The clients of United commercial Bank Limited Khan Jahan Ali branch place their cheques in the clearing department. It is the responsibility of UCB to collect the money for their clients. Sometimes it is not possible because of some problems. Like-Payers may have insufficient fund in the account, in the cheque the amount is mismatched with the amount, if the signature of the drawer of the cheque is mismatched and so on.
If any of these situations mentioned above is then the cheque is rejected by the clearing house. In that case like others United Commercial Bank ( Khan Jahan Ali Branch) returns those “Rejected” or “Return” cheque to the payees.
During my internship period I was responsible to return cheque to the respective clients. To give a return cheque I had to keep some records. In a registered book I had to write the reason of dishonor, time and receipts sign.
Cheque Book in charge
Throughout the internship period I used to deliver cheque book to the respective clients, receive requisition from the clients, update MICR register etc.
I used to go to office at 9.30 am. My first responsibility was to receive cheque book packet from branch correspondent. Then I update MICR register by including new cheque book series. I had to cover the cheque series, account holders name, account number. I also attached requisition slip to the respective cheque book.
Every day I used to receive a good number of cheque requisition from respective clients. I had to send those requisition through online software (PC banking software) before 5 pm.
I also used to deliver the cheque book to the respective clients. First of all a client had to tell his/her account number to receive his/her cheque book. Then I search this account number by using online software which shows me the requisition date. Then I search that particular date cheque book packet to find a particular cheque book. After that I used to write the cheque series of the cheque book in the requisition slip. Then I delivered the check book to the client after having a sign in the MICR register. I usually delivered the cheque book to the account holder. Sometimes account holders are unable to present physically, in that case account holder has to send an authorized person along with a authorization letter consist of the sign of both account holder and authorized person. Without the authorization letter I was not permitted to deliver cheque book to anyone.
Learn to open an account
Besides all the jobs mentioned above I have also learnt how to open an account. In United Commercial Bank the responsibility of opening an account is on Farzana Alam, Junior Officer of United Commercial Bank Limited. She gave me whole idea about the procedure of opening an account, how to deal with customers or how to help them for account opening.
From her I got to know that there are two types of account for customers. They are- personal account and non-personal account. For opening personal savings account needed- two copies of passport size photograph of the account holders duly attested by the introducer, one copy passport size photograph of nominee duly attested by A/C holder, photocopy of birth certificate/ passport/ voter id card no of both A/C holder and nominee, income source copy of A/C holder, A/C introduced by a account holder.
On the other hand, for opening non personal/corporate account for different types of firm like proprietorship firm, partnership firm, limited company club/ society/ school/ college, trust etc papers/documents are required are: two copies of passport size photograph of the account holder(s) who will operate the A/C duly attested by the introducer, A/C introduces by current account holder, certified copy of valid trade license, trade seal, TIN certificate, Trade seal, one copy passport size photograph of nominee duly attested by A/C holder etc.
Giving entry to the account particulars:
After opening an account in paper and pen it should have to give entry in the online software system (PC banking software) so that the customer/ client can do online transaction. I was assigned to give entry at least forty new open accounts information in the software system. Beside this I also did some edit in previously opened accounts.
Maintaining transfer register file:
UCB maintains a transfer register file where I was supposed to keep records of their 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 got registered. At the end of the day I had to sum up the both debit and credit amounts.
WHAT I HAVE LEARN FROM MY INTERNSHIP PROGRAM:
- Now I got a clear idea about general banking system of UCBL.
- Now I know how to write a cheque and pay-order in a proper way.
- What are the reasons for cheque return?
- The whole process of clearing and online transactions.
- The income sources of Bank.
- What is the importance for keeping documents?
I think this real life of learning’s will be beneficiary for my practical life as well as my future professional life.
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.