General Banking Department:
All business concerns earn profit through selling either a product or a service. A bank does not produce any tangible product to sell but does offer a variety of financial services to its customers. General Banking department is considered as the direct customer service-centre. The clients and customers build their impression whether they are going for further dealings with the bank or not on the basis of their service In United Commercial Bank Ltd. The following sections are under general banking department:
- Account opening section
- Remittance section.
- Cash section
- Clearing section
- Collection section
- Financial control section
Account Opening Section:
The relationship between a banker and his customer begins with the opening of an account by the former in the name of the latter. Initially all the accounts are opened with a deposit of money by the customer and hence these accounts are called deposits accounts. Banker solicits deposits from the members of the public belonging to different walks of life, engaged in numerous economic activities and having different financial status. There is one officer in UCBL-Narayanganj Branch performing various functions in this department.
The following things are done in this department:
- Accepting of deposit
- Opening of account
- Check book issue
- Transfer of account
- Closing of account
Accepting of Deposits:
In this branch the various types of accounts are offered to various customers, which are grouped in to:
- Demand deposit account.
- Time deposit account.
Demand Deposit Account:
The amount in accounts are payable on demand so it is called demand deposit account. The following accounts are under demand deposit accounts:
- Current account (CD)
- Savings account (SB)
- Short term deposit (STD).
This type of account is opened by both individuals and business concerns. Frequent transactions (deposits as well as withdrawal) are allowed in this type of account. A current a/c holder can draw checks on his account for any amount for any numbers of times in a day as the balance in his account permits. This account provides no interest.
The minimum balance to be maintained is Tk. 1000.
Two important privileges customer can enjoy in a current account
Other facilities like collection for cheques transfer of money, rendering agency and general utility services. Current Deposit Accounts shall be opened with a minimum amount of Tk. 1000. But under special circumstances it may be opened with Tk. 500. It is payable on demand. No interest is paid in these types of accounts.
Individuals for savings purposes open this type of account. Current Interest rate of these accounts is 5.5% per annum. A minimum balance of Tk. 500 is required to be maintained in a SB account interest on SB account is calculated and accrued monthly and credited to the account half yearly.
Short Term Deposit (STD):
The deposits in this account are withdrawal on prior notice varying from 7 to 29 days and 30 days or more. The interest is paid on the balance of the account. Current interest rate is 4.50% per annum.
Time Deposit Account:
The amount in this a/c is payable only after stipulated time. The following a/c is under time deposit a/c:
- Fixed deposit account.
- Monthly Savings Scheme
Fixed Deposit Account:
These are deposit, which are made with the bank for a fixed period specified in advance. The band need not maintain each reserve against these deposits and therefore, bank gives high rate of interest on such deposits. A FDR is issued to the depositor acknowledging receipt of the sum of money mentioned therein. It also contains the rate of interest and the date on which the deposit will fall due for payment.
Monthly Savings Scheme:
It is one type of savings scheme where installment payment should be deposited to the bank within first 10 days of each month. Monthly Savings Scheme in UCBL has been introduced replacing Deposit Pension Scheme since January 2000; It can be opened for years maturity period for Tk. 500 or Tk. 1000.
Opening of Account:
Account opening procedure
A. Any one of the following should properly introduce the account:
An existing Current Account holder of the Bank, Officials of the Bank not below the rank of an Assistant officer. A respectable person of the locality well known to the Manager/Sub- Manager of the Branch concerned.
B. The type of account, the prospective Customer wishes to open should be ascertain.
Highlight the main features of the account obtained necessary papers prescribed for opening of the particular type of account including two copies passport size photo of the account holder duly attested by the Introducer and verified by the Authorized officer of the Bank.
C. Supply a set of printed forms required for opening the account, which will normally includes:
- Advise of new Account
- Specimen Signature Cards
- Account Agreement
- Check Book Requisition slips.
- Deposit slip Book
D. Request the customer to carefully read and fill up the printed Forms supplied to him.
E. Signature of the customer on the reverse of the signature card. Any special instructions with regard to operation of the account should be noted on the relevant signature card boldly duly authenticated by the a/c holder should be obtained.
F. The required Account Number for the new Account from the Account Opening
Register should be obtained.
G. Obtain the signature and A/C number of the Introducer on the advice of new accountant the place meant for the purpose and gets the signature properly verified by an Authorized official of the Bank.
H. The Deposit slip properly filled in and signed by the customer in duplicate should be collected. Then the new A/C number should be written at the appropriate place of the Deposit slip and mark new Account on both the copies of the deposit slip and request the customer to deposit the money at the Teller’s counter.
I. Place the signature cards, Advice of new account, a copy of Deposit slip, photographs and other necessary papers/documents etc. in a file and obtain approval of the Authorized officer for opening the new account on all relevant papers while giving approval for opening an account the Authorized official should be satisfied about the bonafide of the Introducer, keeping in view the operations of his account.
J. Get each signature of the Customer/Introducer on the Advice of New A/c and on the signature cards admitted by the authorized official of the Bank using a small rubber stamp. The Authorized officer on the advice of new A/c and on the specimen signature cards should also attest the signature of the new a/c holder.
K. After approval of the opening of the A/C, get the Checkbook requisition slip signed by the customer. Debit the customer’s Account for the amount of Exercise duty payable for the checkbook.
L. Deliver the checkbook to the customer after properly marking the Account number name and place of the branch on each leaf of the checkbook.
M. On completion of account opening open a file for the new A/C holder and file all relevant papers forms etc. Signature cards, copies of Advice, Deposit slip Debit ticket etc. is distributed to concerned departments.
Classification of Customers:
- Individual (personal)
- Proprietorship (Sole traders)
- Partnership firms (Registered or Unregistered)
- Joint stock Companies (Private Limited companies/Public ltd.
- Public Sector Corporations
- Municipalities/Municipal Corporations /Local Bodies etc.
- Clubs/Societies/Associations/Schools/Colleges/ Universities etc.
Document Required for Opening new Accounts:
A. Documents Common for all types of Accounts & Customers:
- Advise of New Account (in duplicate)
- Specimen signature cards (in duplicate)
- Account Opening Agreement Form.
- Photographs of Account Holders (in duplicate)
- Deposit Slips Book.
- Cheque Book Requisition slips.
- Letter of mandate authorizing another person/s to operate the A/c on behalf of the
Account holder, where necessary.
B. Additional document / forms are to be obtained for opening some special accounts.
1. Joint Accounts of two or more persons:
Mandate for Operation of Accounts:
A clear authority signed by all the joint A/C holders containing instructions as to who will operate the account and how the account is to be operated should be obtained. The mandate should mention the name of the persons authorized to draw check. In case of death /insanity/insolvency of one or more of the joint a/c holders, the authority will cease to operate.
Probate: From a court of law along with a certified copy of the will duly attested by a notary public.
A mandate in case there is more than one Executor, signed by all the executors, as to how the a/c will be operated.
Letter of Administration from a court of Law along with a certified copy duly attested by a Notary Public appointing him as an Administrator of the Estate of the deceased. The operation of the A/C is to be allowed as per instructions of the letter of administration.
4. Proprietorship Firm:
- Declaration of Proprietorship
- Trade License from Municipality.
- Account Agreement Form
5. Partnership Firm:
- Photocopy of partnership deed registered with Registrar of Firm duly attested by Notary Public.
- Photocopy of Registration Certificate duly attested by Notary Public in case of a Registered Firm.
- Letter of Partnership duly signed by all the partners, in case of non-Registered Firm.
- Resolution signed by all the partners to open the a/c.
- Mandate as to operation of the a/c.
- Account Agreement Form
- Trade License from Municipality.
6. Private limited Joint Stock Company:
- Memorandum of Association and Articles of Association duly certified by chairman or secretary.
- Resolution of the Board duly certified by chairman /Secretary authorizing to open the a/c with the Bank and naming the persons who will operate the a/c, as per provisions of Articles of Association.
- Certificate of Incorporation duly certified by Chairman/Secretary.
- List of Directors duly certified by Chairman/Secretary.
7. Public limited joint Stock company:
- Memorandum and Articles of Association duly certified by chairman /secretary.
- Certificate of Incorporation duly certified by chairman /Secretary.
- Resolution of the Board duly certified by Chairman/Secretary authorizing to open the a/c with the Bank and naming the persons who will operate the a/c as per provisions of Articles of Association.
- Corporate Agreement Forms
- Certificate of commencement of business
- List of Directors duly certified by Chairman /Secretary.
8. Clubs/Societies/Trustee/Associations/Non-trading Institutions etc.:
- Resolution-who will operate the a/c. must be noted-for club
- In case of death, a/c. should be stopped until the club nominates an other person.
- Trust deed is needed-for trustee
9. Municipal Corporation /Local Bodies:
- Copy of the Municipal Act/charter duly certified by the chairman /Administrator.
- Resolution of Municipal committee authorizing the opening of the a/c in the Bank and naming the persons who will operate the a/c duly certified by the chairman/Administrator.
- Accounts of constituted Attorney: Certified copy power of Attorney duly verified with the original by the concerned Bank official under seal and signature.
Issue of Cheque Book:
Fresh checkbook is issued to the account holder only against requisition on the prescribed requisition slip attached with the checkbook issued earlier, after proper verification of the signature of the account holder personally or to his duly authorized representative against proper acknowledgment. Duplicate cheque book in lieu of lost one should be issued only when an A/C holder personally approaches the Bank with an application Letter of Indemnity in the prescribed Proforma agreeing to indemnify the Bank for the lost cheque book. Fresh check Book in lieu of lost one should be issued after verification of the signature of the Account holder from the Specimen signature card and on realization of required Excise duty only with prior approval of manager of the branch. Cheque series number of the new cheque book should be recorded in ledger card signature card as usual. Serial number of lost checkbook should be recorded in the stop payment register and caution should be exercised to guard against fraudulent payment.
The customer submits an application mentioning the name of the branch to which he wants the account to be transferred. His signature cards, advice of new account and all relevant documents are sent to that branch through registered post with acknowledgment the balance standing at credit in customers account is sent to the other branch through Inter Branch Credit Advice (IBCA).
Closing of Account:
Upon the request of a customer an account can be closed. After receiving an application from the customer to close an Account, the following procedure is followed by a banker. The customer should be asked to draw the final cheque for the amount standing to the credit of his a/c less the amount of closing and other incidental charges and surrender the unused cheque leaves. The A/C should be debited for the account closing charges etc. and an authorized officer of the Bank should destroy unused cheque leaves. In case of joint a/c the application for closing the a/c should be signed by all the joint holders.
The major function of commercial banks is mobilization of fund. Other than this, banks provide ancillary 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 transmitted domestically or internationally, which knew as local remittances and foreign remittances. Transferring money within the country is known as local remittance and beyond the national boundary is known as foreign remittance. United Commercial bank Ltd. has its branches spread throughout the country and therefore, it serves as best mediums for remittance of funds from one place to another. This service is available to both customers and non-customers of the bank. There are four employees including two junior officers in this department.
Remittance of funds:
There are three ways of transferring fund domestically. The modes of transferring funds are:
- Demand Draft (D.D.)
- Telegraphic Transfer (T.T.)
- Pay Order (P.O.)
Demand Draft is an instrument containing an order of the Issuing branch upon another branch known as Drawee branch, for payment of a certain sum of money to the payee or to his order on demand by the beneficiary presenting the draft itself.
Process of Issuing a Draft:
- Get the Application form properly filled up and signed by the applicant.
- Complete the lower portion of the Application Form meant for Bank’s use.
- Calculate the total Taka amount payable including Bank’s commission /charges etc.
- If a cheque is presented for the payment of the DD officer should get the check duly passed for payment by the competent authority and record the particulars of D.D on the back of the cheque.
- If the purchaser desires his account with the branch to be debited for the amount of D.D the officer should get the A/C. holder’s signature verified properly, from signature card on record of the branch and debit client’s a/c for the total amount including commission/ charges etc.
- If cash deposit is desired, request the purchaser to deposit the money at the Teller’s counter.
- The Teller, after processing the Application Form, Cash or Cheque, will validate the Application form.
- The first copy of the Application form is treated as Debit Ticket while the second copy is treated as Credit Ticket and sent to Remittance Department for further processing. The third copy is handed over to the Applicant as customer’s copy.
D.D Issue Register:
The Remittance Department maintains prescribed D.D Issue Register. All the required particulars of all L. Ds issued should be entered in that Register duly authenticated. Separate folios are opened for each Drawee Branch. While issuing local Drafts of TK.50, 000/- and above, branches shall put a test number in RED INK on the upper portion of the drafts so that the Drawee branch can immediately make payment of the D.D on presentation after getting the Test agreed, if otherwise found in order.
Issue of Duplicate Draft:
Duplicate D.D should not normally be issued unless thoroughly satisfactory evidence is produced regarding loss of a draft. If the D.D is reported lost/stolen, a duplicate draft may be issued by the Issuing branch on receipt of a written request from the purchase.
Cancellation of Demand Draft:
- The following procedure should be followed for cancellation of a D.D:
- The purchase should submit a written request for cancellation of the D.D attaching therewith the original D.D.
- The signature of the purchase will have to be verified from the original application form on record.
- Manager /Sub -Manager’s prior permission is to be obtained before refunding the amount on cancellation.
- Prescribed cancellation charge is to be recovered from the applicant and only the amount of the draft less cancellation charge should be refunded.
- Commission/Postage etc. charge recovered for issuing the D.D should not be refunded.
- The D.D should be affixed with a stamp Cancelled under proper authentication and the authorized officer’s signature on the D.D should also be cancelled with Red in but in no case should be torn. The cancelled D.D should then be kept with the relevant Ticket.
- The original entries are to be reversed giving proper narration. An IBDA for the cancelled D.D should be issued on the Drawee branch.
- Cancellation of the D.D should also be recorded in the D.D Issue Register.
Payment of D.D:
- On receipt of Inter Branch Credit Advice (IBCA) from the Issuing branch the following responding entries are then be passed by the Drawee branch.
Dr. UCBL General A/c Branch
Cr. Remittance Awaiting Disposal D.D payable A/c
- When a D.D is presented for payment at the paying branch its details are to be carefully examined with references to the following points:
- Whether the draft is drawn on their branch.
- Whether the draft is crossed or not Amount of a crossed draft is not paid in cash to the payee but to be paid to his account with a bank.
- Two authorized officials of the Issuing branch must have signed draft. Their signatures are to be verified from specimen signature book let to be sure that the draft is genuine. The verifier should put his initials in red ink against the authorized signatures in the draft.
- Endorsement on the back of the draft must be regular in case the draft is presented through clearing.
- The amount of the draft should not exceed the amount protect graphed /written in red ink on the top of the draft.
- The payee is to be properly identified in case of cash payment..
- On payment the D.D is affixed with the branches Paid stamp and signatures there on are cancelled with red ink. The date of payment is recorded in the L.D payable.
Stop Payment of D.D:
As the Issuing branch issues the draft, the payee or purchaser of the draft cannot give stop payment instructions to the Drawee branch. If a paying branch receives a request from the payee/endorsee or the purchaser of a draft for stopping payment of the draft, it will ask them to approach the issuing branch for the purpose. The paying branch should however exercise necessary precaution in this regard. Only the Issuing branch can issue instructions for stop payment of draft under special circumstances.
However, if a stop payment order is received from a court of law the same should be carried out. If a draft on which stop payment order has been issued buy account is presented for payment the same should be returned unpaid with the answer court prohibited payment quoting court order number and date.
Cancellation of D.D:
Only the purchaser can request the Issuing branch for cancellation of a D.D. The drawee branch cannot cancel a D.D. The Drawee branch can accept cancellation instructions only from the Issuing branch, when the Issuing branch the relative entry in the UCBL general a/c is reversed cancels a draft and IBDA is issued on the Drawee branch. On receipt of the advice of cancellation through IBDA from the Issuing branch, the Drawee branch should reverse the original liability entries on the strength of the IBDA and record suitable remarks in the L.D payable Register/ related IBCA of the draft.
It is an order from the Issuing branch to the Drawee Bank /Branch for payment of a certain sum of money to the beneficiary. Telex/ Telegram sends the payment instruction and funds are paid to the beneficiary through his or her account maintained with the Drawee branch or through a pay order if no a/c is maintained with the drawee branch.
T.T Issue Process:
- The Applicant fill up the relevant part of the prescribed Application form in triplicate duly signs the same and gives it to the Remittance Department.
- Remittance Department will fill up the commission part meant for Bank’s use and request the Applicant to deposit necessary cash or check at the Teller’s Counter.
- The Teller after processing the Application form, Cash or check will validate the Application form .The first copy is treated as Debit Ticket while the second copy is treated as Credit Ticket and sent to Remittance Department for further processing. The third copy is handed over to the applicant as customer’s copy.
- Remittance Department will prepare the Telex/Telegram in appropriate form, sign it and send it to the telex Operator/Dispatch Department for transmission of the message.
- Remittance Department will prepare the necessary advice
- Debit Advice is sent to the client if client’s a/c is debited for the amount of T.T
- Debit ticket is used to debit the client’s account if necessary.
- T.T Confirmation Advice is sent to the Drawee Branch.
Payment of T. T:
On receipt of T.T payment Instructions the following entries are passed by the Drawee branch if the T.T is found to be correct on verification of Test Number.
Dr. UCBL General A/c
Cr. Remittance Awaiting Disposal- T.T Payable A/c
Dr. Remittances Awaiting Disposal -T.T Payable A/c
Cr. client’s Account
For issuing a pay order the client is to submit an Application to the Remittance Department in the prescribed form (in triplicate) properly filled up and duly signed by applicant. The processing of the pay order Application form, deposit of cash/cheque at the Teller’s counter and finally issuing an order etc, are similar to those of processing of D.D. Application. As in case of D.D each branch should use a running control serial number of their own for issuance of a pay order. This control serial number should be introduced at the beginning of each year, which will continue till the end of the year. A fresh number should be introduced at the beginning of the next calendar year and so on.
For issuing each pay Order commission at the rate prescribed by Head Office is realized from the client and credited to Income A/c as usual.
Refund of pay Order:
The following procedure should be followed for refund of pay order by cancellation:
- The purchaser should submit a written request for refund of pay order by cancellation attaching therewith the original pay order.
- The signature of the purchaser will have to be verified from the original application form on record.
- Manager/ Sub-manager’s prior permission is to be obtained before refunding the amount of pay order cancellation.
- Prescribed cancellation charge is to be recovered from the applicant and only the amount of the pay order less cancellation charge should be refunded. Commission recorded for issuing the pay order should not be refunded.
- The pay order should be affixed with a stamp ”cancelled” under proper authentication and the authorized officer’s signature of the pay order should also be cancelled with RED ink but in no case should be torn. The cancelled pay order should be kept with the relevant Ticket.
- The original entries are to be reversed with proper narrations Cancellation of the pay Order should also be recorded in the pay order Issue Register.
Procedures and journals for pay order (PO):
The cash department deals with all types of negotiable instruments, cash, and other instruments and treated as a sensitive section of the bank. The following things are done in this department:
- Keep record of the information regarding cash remittances
- Supervise the Cash Remittance under direct guidance of Sub-Manager
- Keeping liaison with the Bangladesh Bank, Cash department.
Cash payment of different instruments is made in the cash section. Procedure of cash
payment against cheque is discussed under elaborately.
Cash payment of cheque:
Cash payment of cheque involves few steps:
- First of all the client comes to the counter with the cheque and gives it to the officer in charge there. The officer checks whether there are two signatures on the back of the cheque and checks his balance in the computer. After that the officer will give it to the cash in charge.
- Then the cash in charge verifies the signature from the signature card and permits the officer in computer to debit the client’s account by giving posting. A posted seal with teller number is given.
- Then the Cheque is given to the teller person and he after checking everything asks the drawer to give another signature on the back of the cheque.
- If the signature matches with the one given previously then the teller will make payment keeping the paying cheque with him while writing the denomination on the back of the cheque.
- Cash paid seal is given on the cheque and make entry in the payment register.
Cash Balance Calculation:
The officer in charge of cash section does this calculation and then manager or authorized officer will check the balance and sign in the cash balance book. The balance is maintained in the balance book. Opening balance of current day is the closing balance of the previous day. Total receive of the current day is added with the opening balance and total payment is deducted for calculating the closing Balance or cash balance.
Receipt of Cheque, Draft, Pay Order for Clearing and Collection:
If an instrument (check, draft, pay-order) drawn on a bank located with in the clearing house is deposited then the Teller uses the seal “ Received for clearing “ and provides special endorsement so that no bank other than UCBL, Narayanganj branch can encash the instrument. If an instrument (Check, draft, pay-order) drawn one bank located outside the learning house is deposited, the Teller uses the seal “Received for collection”.
According to the Article 37(2) of Bangladesh Bank Order, 1972, the banks, which are the member of the clearinghouse, are called as Scheduled Banks. The scheduled banks clear the chouse drawn upon one another through the clearinghouse. This is an arrangement by the central bank where everyday the representative of the member banks gathers to clear the chouse. Banks for credit of the proceeds to the customers’ accounts accept Chouse and other similar instruments. The bank receives many such instruments during the day from account holders. Many of these instruments are drawn payable at other banks. If they were to be presented at the drawee banks to collect the proceeds, it would be necessary to employ many messengers for the purpose. Similarly, there would be many chouse drawn on this the messengers of other banks would present bank and them at the counter. The whole process of collection and payment would involve considerable labor, risk and expenditure.
Checks, drafts etc. are drown on bank located outside clearing house are sent for collection. Narayanganj Branch collects its client’s above-mentioned instruments from other branches of UCBL and branches other than UCBL. In case of out ward bills for collection customers account is credited after finishing the collection processor. And in case of in ward bills customers account is debited for this purpose.
So it place dual role as follows:
- Collecting Banker
- Paying Banker.
There is one Officer working over desk in this department. The main activities of the branch are as follows:
- Preparing of Outward and Inward Collection Item.
- Inter-Branch Transfer.
- Batch posting and checking as and when required.
Financial Control Department:
Financial control department is called as the above center of the bank. In banking business, transaction are done every day is their transaction are to be recorded properly and systematically as the banks deal with the depositors money. Any deviation in proper recording many hamper public confidence and bank has to suffer a lot otherwise. Improper recording of transaction will lead to the mismatch in the debit side and the credit side. To avoid these mishaps, the bank provides a separate department, whose function is to check the mistake in passing voucher on wrong entries or fraud or forgery. This department is called Financial Control Department. The bank has to prepare some internal statements as well as some statutory statements which to be submitted to the central bank. Accounts Department prepares these statements also. The department has to submit some statements to the Head office, which is also consolidated by the Head Office later on.
The tasks of the department may be seen in two different angles:
The routine daily tasks of the Accounts Department are as follows, –
- Recording the transactions in the cashbook.
- Recording the transactions in general and subsidiary ledger.
- Preparing the daily position of the branch comprising of deposit and cash.
- 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.
- Recording of the vouchers in the Voucher Register.
The routine periodical tasks performed by the department are as follows,-
- Preparing the monthly salary statements for the employees.
- Publishing the basic data of the branch.
- Preparing the weekly position for the branch which is sent to the Head Office to maintain Cash Reserve Requirement (C.R.R)
- Preparing the monthly position for the branch which is sent to the Head Office to maintain Statutory Liquidity Requirement (S.L.R)
- Preparing the monthly position for the branch comprising of the break up of sector wise deposit, credit etc.
- Preparing an ‘Extract’ which is a summary of all the transactions of the Head Office account with the branch to reconcile all the transactions held among the accounts of all the branches.
After analyzing over all performance of UCBL, we have some recommendation to improve the foreign exchange services.
- Businessmen are very much interested in import L/C. Export L/C is small in number. So UCBL should attract exporter. The personnel of UCBL can directly contract to the exporter. So first they have to find our exporter.
- Local L/C is not introduced in our society very much. UCBL can make a work force to attract the local businessman and make them understand about the benefit of local L/C.
- UCBL should open their branches in the business area like near EPZ, port etc. So that importer and exporter need not to find UCBL’s branches.
- Number of AD branches need to be increased.
- UCBL should be more conscious about the promotional activities. UCBL should use aggressive marketing campaign to attract clients.
- UCBL can pursue a diversification strategy in expanding its current line of business. The management can consider options of starting retail banking.
- UCBL should perform more and more welfare activities.
- UCBL should redesign the service scheme to provide better interest rate. If they establish a faster network system within their branches then it can easily transfer data within a shorter period of time.
- In foreign exchange department it is required to communicate with foreign banks frequently and quickly. To make the process easy and quick the whole bank should be computerized and use faster communication system.
- Margin and commission on L/Cs varies from customer to customer. A customer is allowed to open a L/C ever with nil margins, I think that the bank should review the customer’s transaction behavior for a period of time and should develop a certain policy in this regard.
- They can arrange training program for the employees who are not able to handle modern technology.
- They should automate the transaction recording system instead of manual time wasting process.
- Bank should offer new packages to attract new customer as well as existing customer.
- It can open new branches in places where concentration of people who live abroad is more.
- UCBL should increase the number of ATM booths.
- It should increase its promotional activities to attract its customer.
- Full-fledge online system should be implemented.
UCBL is well positioned to meet the challenge and will take the opportunity of benefit from economic growth. The bank would serve as partner and advisor of the clients to trade, commerce and industry. This strategy is supported by wide spectrum of products and services.
The mission of the bank is to be utmost trustworthy stakeholder, careful, committed for equitable and sustainable growth based on diversified deployment of fund/resources leading the bank to the peak of healthy and wholesome financial institution. If the bank is going to succeed internationally, it must know as much or more than its customers and competitors. A single misstep may not only cost its company business, it can lead to big delays and stiff fines. Unfortunately, most information about international trade is targeted at big companies with large logistics and legal staffs that know how to navigate the maze of import-export rules and regulations. Small and midsize companies lack the resources – and often the training – of larger corporations.
UCBL is maintaining a well-structured communication from top to bottom level. Each official should be valued and treated as a part of the bank and they must have the privilege to devote themselves for the betterment of service of the bank. UCBL places utmost importance on managing foreign exchange. The whole process includes management of export, import, remittance, Foreign Exchange Risk, and successful completion of trade.
The bank always tries to increase its foreign exchange performance. As the bank is located in commercial area it is a great opportunity for the bank to attract customers. Though it has some problem with its foreign exchange department, it is always trying to accelerate its foreign trade.
The 24 years success story though helped the bank to attain a leading role but to remain unrivalled among new generation banks, the bank must face new challenges.
Overall, the bank must make a positive attempt to be more outward looking in their goals and aware of what is happening. They must also emphasize on the domestic scenario more closely and analyze any certain trends and strategies of their competitors. The bank must accept any failures and think of them as an objective to pursue future goals instead of blaming such failures on other factors.
Books & Articles:
- Ali Syed Ashraf & Howlader R.A, “Banking Law and Practice”.
- Ali Syed Ashraf, “ Foreign Exchange and Financing of Foreign trade” (1995)
- Bangladesh Bank, Guideline for Foreign Exchange Transaction, (vol-2)
- Export Policy’2006-2009
- Foreign Exchange Regulation Act -1947
- Import Policy’2006-2009
- UCBL, Annual Report- 2006
- UCBL, Annual Report-2007
- UCBL, Annual Report- 2008
- UCBL, Monthly Statement, October 31, 2009
- UCBL, Manual for Foreign Exchange Transaction of Foreign Exchange Department.
- UCPDC-600, ICC Publication No.600LF.
- Various Official Records of United Commercial Bank Limited
- Banking Sector of Alarafah Islami Bank
- Training and Development Process of BARC Bank Limited
- Retail Banking and Foreign Exchange Mechanism of Standard Bank Limited (Part 3)
- General Banking System on Dutch Bangla Bank Ltd
- Credit Management of Arab Bangladesh Bank Limited
- NRB Remittance in Relation to General Banking in AB Bank Limited