Md. hashibur rahman (internship report)

INTERNSHIP REPORT
ON
Priority Banking Service in Bangladesh

Course Code- INT 4399
Course Title- Internship/ Project
Fall Semester 2012

Prepared for
Sarker Rafij Ahmed Ratan
Assistant Professor
School of Business and Economics
United International University (UIU)

Prepared by
Md. Hashibur Rahman
ID: 111 081 203

Date of Submission: December 12, 2012
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“Priority Banking Service in Bangladesh”

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Course Code: INT 4399
Course Title: Internship/Project
Fall Semester: 2012

Submitted To
Assistant Professor
School of Business & Economics
United International University

Submitted By
Md. Hashibur Rahman
ID: 111 081 203

Date of Submission: December 12, 2012
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Letter of Transmittal

December 12, 2012


Assistant Professor



Subject: Submission of Internship Report Based on ‘Priority Banking Services in Bangladesh’.

Dear Sir,

With due respect and humble submission, I am a student of BBA Department and already I have
completed 120 credit hours. I completed my internship under your kind of supervision and now I
want to submit my internship report which based on ‘Priority Banking Service in Bangladesh’. It
gives me immense pleasure to inform you that I have completed my internship report under your
kind hearted direct supervision and I learn so many things which help me in future.

Now, I want to place my internship report and for this reason I want your kind approval. I hope
my report will satisfy you.

Sincerely yours:

Md. Hashibur Rahman

ID# 111 081 203


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ACKNOWLEDGMENT
All Praise To Almighty Allah

At first I am thankful to my Almighty Allah, who gives me the strength to complete this
internship report. Any comprehensive work such as this report must owe credit to multitude
people and their inspiration, guidance, financial and logical help needed. In preparing this report,
different persons have extended their helping hands to me. It would have not been possible for
me to prepare this report without their help. Certainly, I wish to express my profound gratitude to
my honorable intern supervisor Sarker Rafij Ahmed Ratan, Assistant Professor, School of
Business & Economics, United International University (UIU).

I am deeply grateful to Mr. MD. TAREQ UDDIN, (Assistant Vice President & In charge-
Imperial Banking, Retail Banking Division, UCBL) for giving me the opportunity to work in
UCBL. I also grateful to Mr. RASHED MD. KHAN, (Relationship Manager, Imperial
Banking, UCBL) and Mr. MOHAMMAD SHA SUJA (Relationship Manager, Imperial
Banking, UCBL), SHAHIDA AKHTER KHANAM (Associate Relationship Manager,
Imperial Banking, UCBL) for guiding me to prepare this report.

I am also obliged to MD.FORHAD HOSSAIN, (Senior Vice President & Head of Mirpur
Road branch, UCBL) and MOHAMMAD SALIM ULLAH, (Assistant Vice President &
Operation Manager of Mirpur Road branch, UCBL) for giving me the opportunity to work
and gather practical experience.

I would like to convey my thanks to all officers of Mirpur Road Branch for their help, valuable
suggestions and contributions that have helped me much to learn many new things and also to
preparing this report. I also like to thank all other employee of Mirpur Road Branch for giving
me suggestions and facilitating this internship report. I would like to give thanks to all the
respondents for their participation and giving me their valuable time to prepare this report and
their opinion. I am indebted to those websites that indirectly helped me in completing my
internship report.

And last but not the least, no words can adequately express my earnest gratitude to my family
members and friends whose support help me in all the way.
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Declaration

I confirm that the Internship Report titled “Priority Banking Service in Bangladesh” is being
submitted for the internship part of my BBA program is the original work carried out by me. It
has not formed the part of any other reports submitted as internship report either in this or any
other University.

Thanks and Regards

Yours Truly

----------------------------

Md. Hashibur Rahman
ID # 111 081 203
BBA Department

I certify that the declaration made above by the Student is true.

-----------------------------------

Assistant Professor

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Executive Summary

Priority Banking Service is relatively new, innovative and becoming popular for its services
facilities in the banking context of Bangladesh. Different local banks and other commercial
organizations are moving towards Priority Banking Service as their daily routine. Once the
customers are entitled for Priority Banking Service, customers get some extra value added
service benefits which are not being offered to any regular or normal customer. The main motive
of this service is to retain & attract the high net-worth customers and increase their financial
portfolio. Priority Banking Service was first introduced by HSBC in 2005 in Bangladesh,
followed by Standard chartered Bank. Other local banks are also introducing Priority Banking,
but they are not that much well equipped with resources to complete with the current Multi-
national banks. They don’t follow any common or international standards due to lack of research
and development (R&D). Moreover Bangladesh Bank has not yet intervened any set of
guidelines or instruction for Priority Banking Service which may lead to frauds and forgery.
Services provided by the local banks may arise confusion to the customers since there is no
common standards followed by every bank, the current services offered varies from bank to
bank. However, Priority Banking Service is moving towards a new dimension for entire banking
industry in Bangladesh as it is developing fast. Targeting a different prospective client will
definitely help in growing existing customers database, therefore this is the going to be main
reason to introduce Priority Banking Service in Bangladesh. The emerging prospect of this new
segment can be reason of business growth, if properly practiced as per international standard.

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TO PIC PAGE
PREFACE I-V
Name of the Authors I
Letter of Transmittal II
Acknowledgement III
Declaration IV
Executive Summery V

Chapter 1:
1.1 Introduction
Introduction 1-5
1
1.2 Origin of the Report 2
1.3 Scope of the Study 2
1.4 Objective of The Report 3
1.5 Methodologies 4
1.6 Limitation of the Study 5

Chapter 2:
2.1
Overview of Priority Banking Service
6-9
6
2.2 History of Priority Banking Service 6
2.3 Facilities of Priority Banking Service 7
2.4 Priority Banking Service In Bangladesh 8
2.5 List Of Priority Banking Service Provider In Bangladesh 9

Chapter 3: Priority Banking Service In Bangladesh
3.1 United Commercial Bank Ltd. (UCB)
11-21
11
3.1.1 General Information 11
3.1.2 Facilities for Clients 11
3.1.3 Eligibility for Clients 12
3.2 Hongkong & Shanghai Banking Corporation (HSBC) 13
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3.3 BRAC Bank 14
3.4 Standard Chartered Bank Ltd. 16
3.5 Eastern Bank Ltd. (EBL) 17
3.6 Mutual Trust Bank Ltd. 19
Visiting Card of Different Bank’s In-charge of Priority Banking Service 21

Chapter 4:
4.1
Priority (Imperial) Banking Service in UCBL
Overview Of Imperial Banking Service in UCB
22-37
22
4.2 Proposed Operating Location 23
4.3 Organogram 24
4.4 Value Proposition 24
4.5 Service Proposition 25
4.6 Imperial Banking Service Offerings 26
4.7 Eligibility Criteria for UCB IMPERIAL & Criteria to remain Eligible 28
4.8 Target Customer 29
4.9 Source of prospective Clients 29
4.10 Area Based Existing Customer of UCBL who are eligible for Imperial 30
4.11 Source of Client Acquisition 31
4.12 Operation Module 31
4.13 Document Needed for Imperial Account 32
4.14 Financial stipulation 33
4.15 Cancellation of Priority Service 34
4.16 Future Proposition 34
4.17 Instruction Manual 34
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4.18 Address of UCB Imperial Banking Service 36
4.19 Picture of UCBL Imperial 37

Chapter 5
5.1
: Comparison Of Priority Banking Service in BD
General Comparison 39
5.2 Comparison of Facilities 40
5.2.1 Table & Chart 41
5.2.2 Graphical Comparison 42

Chapter 6:
6.1
United Commercial Bank Ltd. (UCBL)
Over View Of United Commercial Bank Ltd. (UCBL)
43-51
43
6.2 Vision, Mission and Corporate culture 44
6.3 Board of Directors 45
6.4 Products and Services 46
6.5 Other Information 46
6.6 Financial Position in a Glance 47
6.7 General Banking 49
6.7.1 Account Opening Section 49
6.7.2 Deposit Section 49
6.7.3 Cash Section 50
6.7.4 Local Remittance Section 50
6.7.5 Clearing Section 51

Chapter 7:
7.1 Findings
Findings, Recommendation & Conclusion 52-57
52
7.2 Recommendation 53
7.2.1 Recommendation for Priority Banking Service 53
7.2.2 Recommendation for Imperial Banking Service 54
7.2.3 Recommendation for UCB (General Banking) 55
7.3 Conclusion 57
BIBLIOGRAPHY 58
APPENDIX 59

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Chapter-1
Introduction

Introduction

Origin of the Report

Scope of the Study

Objective of The Report
Broad Objective
Specific objective
Additional Objective
Methodologies
Primary Data
Secondary Data
Limitation of the Study

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1.1 Introduction
Bangladesh is a developing country. The financial institutions especially banks have undergone a
tremendous change in recent phew years due to contribution in the economic growth of the
country, technological innovation, diversified needs of the customers, security and high
competition. In Bangladesh, the Banking service today plays a vital role in our economic
development and now it is one of the most leading, promising and established sector. Every bank
deals with the most important factor of the economy that is Money. It flows funds from surplus
unit to deficit unit and through this it facilitated the efficient allocation of the resources as well as
it accelerated the economic growth. Private Banks are playing an important role compare to the
government bank in the country. They always try to expand their business. For this, they are
offering various new products and new services to fulfill the needs and demands of customer by
providing more customized service. In recent phew years, for the Customer interest different
banking sector offer Priority Banking Service in Bangladesh. This Priority Banking Service is
moving towards a new dimension as it is developing fast due to competition, deregulation, and
better and customized service than ever before.

As the place of globalization competition, banking sector is developing very fast. Banks are
becoming more customers oriented and offer High tech customized products to its target market
to grasp the market. Central bank ‘Bangladesh Bank’ always keeps monitoring those banks of
our country, measure each banks performances. Individual banks also need to assess their own
performance to satisfy the parties those are related to its growth. All this things are the reasons
for offering and establishing Priority Banking Service in Bangladesh.

Internship program is essential for all BBA students because it help them to acquire different
knowledge and survive in real life situation. Bank is one of the important institutions to acquire
the real life experience. So I have selected ‘United Commercial Bank limited (UCBL)’, which is
now one of the leading private commercial banks in Bangladesh. In Bangladesh Priority Banking
Service is innovative and becoming popular, for this reason I prepared my internship report on
“Priority Banking Service in Bangladesh”.

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1.2 Origin of The Report

Internship is one kind of program which helps a student to have a complete idea and gather
knowledge and experience of full time job experience and also internship fulfill the partial
requirement of Bachelor of Business Administration (BBA) program. Since the banking is a
prosperous sector, I have chosen “United Commercial Bank limited (UCBL)” for the completion
of this internship program. Priority Banking Service is newly added service in UCBL. This
report mainly focuses on ‘Priority Banking Service in Bangladesh’.

1.3 Scope of the Study

Predominantly UCB has been indentified and perceived as a bank working in the corporate
arena. With introduction of retail banking, the image is gradually shifting where individuals have
started to believe that UCB is not only a bank where the corporate clients are only entertained;
this is also the bank where individual banking needs is being attended. Since the launch of Retail
Banking in February 2009 the bank has achieved considerable business growth and in a very
short time the bank has established itself as one of the leading brands in Retail Banking Sector
thought wide range of personal banking products. Retail success has always been the organic
growth from its high-end segment of customers. In order to retain, deepen and grow this niche
market and to recognize and reward their value to the bank, it is felt that there is a need to
provide differentiated service to them. UCB IMPERIAL (Priority Banking) Customers service to
attract them to do lifestyle banking with UCB. It is more than the customer expectation.

This report mainly focuses on ‘Priority banking service in Bangladesh’ as well as the general
banking in UCB. I am working in the Imperial Banking service in Mirpur Road
Branch and this provides me the way to get myself familiarized with Priority banking
service as well as the General banking environment. I have an opportunity to gather experience
by working in Imperial banking service and different departments of General banking of Mirpur
Road Branch.

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1.4 Objective of The Report

Broad Objective :

The broad purpose of this study is to gain practical knowledge about the operation of financial
institution like bank (UCBL) to fulfill the partial requirement of the internship program as full
credit subject of the BBA program. Priority Banking Service is a new service for financial
institution like in a Bank in Bangladesh. This report is to provide a general description of the
initial and present status of ‘Priority Banking Service in Bangladesh’.

Specific Objective :

The following aspects can be listed as the specific objectives:

 To apply the theoretical knowledge in the practical field.

 To know about the ‘Priority Banking Service in Bangladesh’.

 To measure the overall Status of ‘Priority Banking Service in Bangladesh’.

 To identify the products and services, different facilities, activities and Eligibility criteria
for Priority Banking Service.

 To find out the different lacking and recommendation (solution) for ‘Priority Banking
Service in Bangladesh’.

Additional Objective :

 To observe the working environment in United Commercial Bank Limited (UCBL).

 To know the General Banking, General Advance and Foreign Exchange Advance of
United Commercial Bank Limited UCBL.

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1.5 Methodologies

For smooth and accurate study I have emphasized on the practical observation with following
some roles and regulation. In the time of preparing the report, I have taken all the information
from two sources:

Primary Data :

Primary data were mostly derived from the discussion with the employees
and personal experience during Internship period. I have collected primary information under
consideration in the following manner:

 Face-to-face conversation with the respective officers and staffs.

 Direct observation.

 Hearing conversation between respective officers and Clients.

 Different relevant information sent by Head Office of UCBL.

 Relevant file study as provided by the officers concerned.

 Practical work exposures from the different desks of the departments of the Branch
covered.

Secondary Data :

I have taken the help from different types of secondary data in my report. The
sources of those data can be categorized as follows:

 From UCBL Brusher and Other Banks Brusher.

 Different books and periodicals related to ‘Priority Banking Service in Bangladesh’.

 Face-to-face conversation and observation with the relevant officers and staffs in other
Bank that provide Priority Banking Service.

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1.6 Limitation of the Study

‘Priority Banking Service’ is new service facility for all available Banks in Bangladesh that
started from recent phew years. That’s why enough information is not available in internet about
‘Priority Banking Service in Bangladesh’. Moreover due to the security reason and
confidentiality, all the bank personnel usually don’t want to disclose all the information about
their Priority Banking Service and also enough information is not available in their website. The
entire bank that is providing Priority Banking Service has some limitations to disclose all
the information. Time is another major limitation’s because the duration of the program was
three months only and being a temporary member of the organization, it was not
possible on my part to notice or express some of the sensitive issues and other aspects.
However the some of the limitations I have face while preparing this Report are listed as follows:

 Limitation of information because Information is not available in internet and different
bank website.

 Every bank that provides Priority Banking Service has their own secrecy that is not
revealed to others. While collecting data, interviewing the employees, they did not
disclose much information for the sake of the confidentiality of the organization.
 It was very difficult to collect the information from various personnel for their job
restriction.
 It was difficult to communicate with the customer, as many of them were unable to give
me much time for interview.
 In many case up-to-date information was not available.

 Time is also a big constraint for my study. I have to submit a broader deal in a shorter
form of outcome.

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Chapter-2
Overview of
Priority Banking Service


History of Priority Banking Service

Facilities of Priority Banking Service

Priority Banking Service In Bangladesh

List Of Priority Banking Service Provider In Bangladesh

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2.1 Overview of Priority Banking Service

Priority Banking Service is relatively new in the banking context. Priority banking service is
the banking service that gives much more priority to high valued and first class customer. In this
form of banking, the bank identifies its priority customers (often customers with deposits above
30 lakh-however this is different for each individual bank) and some special privileges are
provided to these first class or high valued customers by the bank. Ex. They do not have to wait
in the queue for transactions, given priority based service, free cheque book & debit card, instant
account information & access ability. They are assigned clients with dedicated relationship
managers to take care of all their daily banking needs. These customers can use banks premises
that are known as lounge for holding meetings, can access the Internet free of cost, online bill
pay, financial consultation and several other benefits are also provided. The basic purpose of this
form of banking is to make the experience of banking hassle free and less time consuming. This
is not to be confused with wealth management where the thrust is on providing first-class or high
valued customers customized services and expert advice on various financial needs. This is
generally carried out by the wealth managers of the bank. However priority banking as part of its
service offerings may include wealth management. Priority banking may also be offered as a
promotional offer for new customers.

2.2 History of Priority Banking Service

Many people in every country have enough money. They are rich and they have less time,
because they are involving in several work. Different banks try to realize that they can do
something for this type of people. If the bank offers new service which helps this rich people,
safe their time and if this new service become profitable for both this type of rich people, clients
and for the bank then it will be better for the bank. From this realization different banks lance a
new service for the rich and first class people known as Priority Banking Service. By this service
bank offer different new service and privilege for their clients, high valued and first class
customer. The main purpose of Priority banking service is to serve the clients. It means this
service offer for the clients and attracts the customer. In the globalization, competition is high
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and that’s why all banks offering various new products and new services to attract the customer
and fulfill the needs and demands of customer by providing more customized service to grasp the
market. For this reasons, different bank wish to release Priority Banking Service for their high
valued and targeted customer. First HSBC and Standard chartered bank (SCB) open priority
banking service for serve their special clients who are doing business internationally. Then they
try to serve the individual customer. After a certain moment other banks interested to open this
service for serve their client. At present not only in Bangladesh but also outside of Bangladesh
different private bank lunch Priority Banking Service. Priority banking service is now getting
response and popularity. Different types of other private and public organization are moving
towards priority based service only because of better service and getting response from clients.

2.3 Facilities of Priority Banking Service

Under Priority banking service the customer enjoys exclusive Privilege across wide range of
products & services. From my observation I notice that different banks offer different Special
service to attract the customer as their Priority banking service. Some common privilege services
provided are as: -

 Priority based service at all bank branches and through Customer Care.
 Instant account statement & access ability.
 Can use Banks lounge for holding meetings.
 Preferential rate on purchase of Bank pure gold and foreign exchange.
 Discount on annual fee for safe deposit locker.
 Special rates on Bank loans.
 Preferential rate on DD/ PO charges.
 Multi-city and special cheque book which different from others.
 Free cheque book & debit card.
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 Waiver on account and credit card related charges.
 Assigned client a dedicated Relationship Managers to take care of all their banking needs.
 Financial consultation.
 Different types of gift and special logo/ sticker that identify high valued customer.
 Where don’t have lounge, can use bank branch manager (branch head) room.
 Several other benefits are also provided.
 Discount in hotel, restaurant, shops, hospital etc.

2.4 Priority Banking Service In Bangladesh

Bangladeshi banking sector are becoming more customers oriented. In Bangladesh there are
about 78 banks exist right now. The financial system of Bangladesh consists of Bangladesh Bank
(BB) as the central bank, 4 State Owned Commercial Banks (SCB), 5 government owned
specialized banks, 30 domestic private banks, 9 foreign banks and 29 non-bank financial
institutions. Moreover, MRA has given license to 298 Micro-credit Organizations. The financial
system also embraces insurance companies, stock exchanges and co-operative banks. In
Bangladesh Priority Banking Service is innovative and becoming popular for its services
facilities that is providing by the bank as they promises. Under priority banking service a
customer get all the support that they need. Although all bank take care of their entire customer
but all customer are not same. Some are high valued customer; some are like valuable customer
but not as like high valued customer and rest others are general customer. The expectation of
high valued and first class customers and general customer is not same. High valued customer
and first class customer need more customized service to safe their valuable time. For their
valuable time bank provide all the service that they need. Under the Priority Banking service
bank provide this service but that particular customer should be a priority customer. He/ She
need to fulfill the requirement of priority banking condition. If a client or customers fulfill the
requirement of priority banking condition then he/ she will be a priority customer and from that
time bank will give different privileges. Bank will take extra care of that priority customer. At
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present about seven banks offer this Priority Banking Service for their high valued customer in
Bangladesh.

In Bangladesh all the bank those offer Priority Banking Service are getting positive response
from the customer and customer use the privileges as a priority customer. Some people, who
have enough money to keep in a bank, are looking for Priority Banking Service. Their intension
is like that, they has to keep money in a bank, so if they get enough service from the bank which
safe their time and reduce their tension, will better for them. As a result they are going forward to
Priority Banking Service. Different bank lance Priority Banking Service that’s whey competition
is high. All the banks try to provide more new service from others to attract the customer. For
that reason Priority Banking Service is not same in all banks, although it seems to some service
are common for the customer. Customer always wants more customized service as their
requirement that’s why the entire bank moving towards Priority Banking Service.

2.5 List Of Priority Banking Service Provider In Bangladesh

The financial system of Bangladesh consists of Bangladesh Bank (BB) as the central bank, 4
State Owned Commercial Banks (SCB), 5 government owned specialized banks, 30 domestic
private banks, 9 foreign banks and 29 non-bank financial institutions. But all banks are not open
priority banking service yet. Some bank try to grab the market by this service but their priority
banking service system is not working fully because all banks launch it for the first time in
Bangladesh. Some private banks lance priority banking service in Bangladesh which is given
below with name of the bank and their logo, their priority banking service name and its logo.

Name of the Bank with Bank Logo Priority Banking Priority Banking Service
Service Name Logo
United Commercial Bank Ltd. (UCB)
IMPERIAL
BANKING

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Hongkong & Shanghai Banking
Corporation (HSBC)
SELECT

BRAC Bank
PRIMIUM PRIMIUM
BANKING
Banking

Standard Chartered Bank Ltd.

PRIORITY
BANKING

Eastern Bank Ltd. (EBL)

PRIORITY
BANKING

Mutual Trust Bank Ltd.

PRIVILEGE
BANKING

ICBI
PRIVILEGE
BANKING
Privilege
BANKING

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Chapter-3
Priority Banking Service
in Bangladesh

United Commercial Bank Ltd. (UCB)

Hongkong & Shanghai Banking Corporation (HSBC)

BRAC Bank

Standard Chartered Bank Ltd.

Eastern Bank Ltd. (EBL)

Mutual Trust Bank Ltd.

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3.1 United Commercial Bank Ltd. (UCB)
3.1.1 General Information:
UCB starts its priority banking in 3rd June 2012. The current name of UCB priority banking is
Imperial. Retail Banking Division hereby proposes to rename “UCB Royal” as “UCB
IMPERIAL” for its Priority Banking concern. Imperial is more than privilege banking services.
It is about recognizing its client’s needs and making their wealth come alive through Returns,
Rewards and relationships. UCB Imperial banking product proposition offers banking,
borrowing, protection and investment, exclusive new products along with a high level of service
by professional relationship managers to meet its client’s specific needs. The dominating factors
that drive the concept of Imperial Banking is “To Retain & Attract the High Net-Worth
Customers”. UCBL has currently 2 Lounge for serve their client.

3.1.2 Facilities for Clients:
UCB Imperial Clients are entitled to access certain benefits and Preferred Pricing structured.
They are allowed to entrance certain benefits like:

 Imperial Lounge and Branch Privilege
 Exclusive cash transaction environment
 Always fresh currency notes
 Preferential allocation of locker upon availability.
 Hotel/ Hospital/ Air ticket/ Rail way ticket booking
 Monthly/Quarterly statement; Monthly E-statement free
 Free SMS after every transaction to ensure safety of transaction.
 Preferential attention in all UCB branches
 Dedicated Relationship Manager
 Home delivery service (Non cash Items)
 Credit Card Privileges
 Preferential Rates in Retail Products
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 Fast track loan processing
 Travel concierge services
 Medical Facilities
 Children's Savings Account (Cross-Selling)
 Direct Benefits: waiver of Charges
 Dual Currency Debit card
 Referral Program
 Complementary Monthly Magazines (delivery at home/office)
3.1.3 Eligibility for Clients:
 Minimum Average Balance Requirement:

 Customer needs to maintain a minimum balance of BDT 30, 00,000.00 (Taka Three
Million) per month in either Savings or Current Account or in combination of
Savings and Current Account.

 For Fixed Deposit, the minimum amount would have to be Tk. 40, 00,000.00 (Taka
Four Million).

 Customer maintaining BDT 30, 00,000 Savings/ Current deposit with 10, 00,000 or
more as loan can be enrolled as Imperial Member.

 Special enrolment for socially renowned client, reference from Management or Board
(People who will be a spokesperson and opinion leader, having good balance in other
competitive banks and already availing such facility with other bank).

Criteria to remain eligible are as follows:

 Clients must maintain UCB Imperial Deposit minimum six month’s relationship
with sufficient funds to cover the minimum balance requirement.

 And/ or any other criteria as UCB may determine at its discretion from time to time.
[UCBL Imperial Broacher, 2012]

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3.2 Hongkong & Shanghai Banking Corporation (HSBC)
HSBC starts its priority banking in 1st January 2005 in Bangladesh. The current name of HSBC
priority banking service is ‘Select’ for only Bangladesh but for international it is ‘premier’. This
Select service is under control by Retail Banking Division. HSBC Select is having a bank that
personally takes care of its clients finances. It is design for the select for few who demand
immediate, undivided attention. HSBC Select is a highly specialized proposition offering
unprecedented levels of exclusive services. HSBC Select customer will be privy to superior
facilities, preferential pricing and a seamless, streamlined style of banking, affording them
greater freedom in personal and financial fronts. HSBC has currently 5 Lounge in Bangladesh
for serve their client.

HSBC Select Clients are entitled to get exclusive privileges, like:

 Dedicated Relationship Manager
 Exclusive Privileges in Hotel, Accommodations and Airport Services
 Privileged access
 Pre-approved overdraft facility
 Preferential pricing
 Waiver of fees on selected services
 Greater Credit limits
 Higher ATM limits
 Free ATM cash withdrawals from any visa marked ATMs within Bangladesh
 Privileged services at Hazrat Shahjalal International airport
 Visa Gold International Credit Card & HSBC Global Select ATM Card
 Commission free Endorsement
 Emergency Cash Disbursement
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HSBC Select is an exclusive proposition for customers who maintain a total monthly deposit
balance equivalent to BDT 40, 00,000 (Four Million Taka only) or more within HSBC in
Bangladesh. HSBC Select family package is an exclusive proposition for the family members of
customers who maintain a total monthly deposit balance equivalent to BDT 70, 00,000 (Seven
Million Taka only) or more with HSBC in Bangladesh. A maximum of three people from the
same family will be eligible to enjoy the HSBC Select Family Package. For HSBC Select Family
Package, the primary account holder will have to maintain a minimum monthly average balance
of BDT 40, 00,000 (Four Million Taka only) in order to be eligible.

[HSBC Select Broacher, 2012]

3.3 BRAC Bank
BRAC Bank Called their Premium client as Platinum Card holder and gives them free access to
the Balaka VIP Lounge at Hazrat Shahjalal International Airport and get free access and enjoy
other facilities in the Balaka Lounge. This service provides access to fast track and personal VIP
treatment. Platinum Privileges Exclusive Offers on Client’s Platinum Credit Card. BRAK Bank
has currently 10 Lounge in Bangladesh for serve their client.

Platinum Card holder Exclusive Privileges are given below:

 Dedicated Relationship Manager for only serve Platinum Card Holders.
 Instant Account information & free Statement.
 Free access at BALAKA VIP Lounge in Hazrat Shahjalal International Airport.
 Unique Priority airport arrival and departure service
 Discount at PUROBI JEWELLERS
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 Discount at OTOBI
 Discounts in restaurants all over India
 TEE off at top GOLF CLUBS around the world
 Discount at GULSHAN GROUP of HOTELS
 PRIORITY PASS (world’s largest independent airport lounge access program)
 Visa SPEEDPASS
 CONCIERGE service
 Entertainment facilities
 Emergency services


 Customer needs to maintain a minimum balance of BDT 50, 00,000.00 (Taka Five

Five Million).


 Clients must have to become a BRAC Platinum Card holder Deposit relationship

 Any other changes as BRAC Bank may determine at its prudence from time to time.
[BRAC Primium Broacher, 2012]

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3.4 Standard Chartered Bank Ltd.
We all have different priorities in life. Is it securing our family’s financial future, Pursuing our
ambitions in life, spending more time on activities that Standard Chartered Bank are passionate
about or being recognized and rewarded for customers achievements, SCB priorities are usually
a combination of these and more. And they will continue to evolve and change over time. At
Standard Chartered Priority Banking SCB recognize that. Standard Chartered Priority Banking
Service known as ‘Priority Banking’ and it offers a total banking relationship that is anchored on
three pillars of commitment. 1. Priority Benefits 2.Priority Solution 3.Priority Service. SCB has
currently 5 Lounge for serve their client in Bangladesh.

Status, Convenience, Benefit or Wealth, SCB recognize it all. SCB provide special privileges,
like:

 Global Recognition
 Total Relationship Rewards
 Reward Points Across Multiple Product Holdings
 Credit Card Spend, Average Balances in Savings or Current Account, Outstanding
Balances of Loans.

 Leading the way in Bangladesh
 Service like Ask Once & It’s Done
 Express Processing: Account Opening, Loan Disbursements
 Dedicated Complaint Management: Guaranteed Response in 24 hrs
 International Banking
 Global Foreign Exchange Discounts at Travelex
 Emergency Cash Facility
 Family Recognition

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 Priority status for spouse and children
 Free Visa Platinum Credit Card & Platinum Debit Card



Four Million).


 Clients have to maintain SCB Priority Deposit minimum three month’s relationship

 And/ or any other criteria as SCB may determine at its discretion from time to time.
[SCB Priority Broacher, 2012]

3.5 Eastern Bank Ltd. (EBL)
EBL Priority banking is an exclusive banking service proposition offered to their most valued
clients like you. Their Priority Banking Service known as ‘Priority Banking’. EBL are dedicated
in providing a comprehensive range of banking services to help you both enhance your wealth
and enjoy a life full of privileges. They have dedicated relationship Managers are assigned to
take care of all your banking needs. For EBL service excellence in not just customer satisfaction,
but customer delight. EBL has currently 7 Lounge in Bangladesh for serve their client.


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 Personal dedicated Relationship Manager
 Complementary Dual currency Visa Signature debit card
 Privileged access to 600 airport lounges worldwide.
 Complementary membership/ discount on top hotels, restaurants, airlines, hospitals,
superstores.

 Meet and greet service at Hazrat Shahjalal International Airport, Dhaka.
 Fast track loan/ deposit application process
 Prevailing interest rate on loan products
 Higher ATM withdrawal limit
 No minimum balance fee
 Free unlimited times of cash withdrawals and deposits
 Access to lockers at flexible hours without extra pay
 Number of waivers in bank account services


Savings and Current Account as well as in Fixed Deposit.


 Clients must have to maintain EBL Priority Deposit minimum three month’s
relationship with sufficient funds to cover the minimum balance requirement.

 Any other change as EBL may establish at its discretion from time to time.
[EBL Priority Broacher, 2012]

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3.6 Mutual Trust Bank Ltd.
Mutual Trust Bank Ltd. (MTBL) Priority Banking Service is known as ‘Privilege Banking’.
MTBL starts its priority banking Service in 24th March 2011. They choose Individual Fund as
their target customer but not any corporate or other fund. MTBL are getting average response
from their target customer. They started their Privilege Banking service with one lounge in
Gulshan area. They are providing customized service for their Privilege client. They provide
service as they are promises. Their Future plan is to serve properly to their existing customer as
well as new customer with more lounges facilities in different important area and they want to
become a trusted bank in Bangladesh.

Privileges as a Privilege Banking customer are entitled to special perks and benefits. Get ready to
be pampered; MTBL services are designed to put a smile on client face, Exclusive lifestyle
choices with MTBL partners. Below is a preview of MTBL privileged services:

 Reduced lending rates
 Waiver of fees on various products and services
 Higher ATM withdrawal limit
 Free internet Banking
 Free Debit card
 Discount on locker service
 Special Debit card & Cheque books
 Composite Statement
 International Credit Card
 Dedicated Lounges
 Preferential and fast track service for loan application
 Dedicated Personal relationship Manager
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 Dedicated hotline at the Contact Centre
 Free Internet Browsing at Privilege Centre
 Exclusive Experiences at Hotel, Restaurants, Hospitals, Shops and Clubs.


Savings and Current Account as well as in Fixed Deposit.


 Clients must maintain MTBL Privilege Deposit minimum three month’s
relationship with sufficient funds to cover the minimum balance requirement.

 And/ or any other condition as MTBL may determine at its caution from time to
time.
[MTBL Privilege Broacher, 2012]

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In the time of my direct observation, I wes collect visiting Card of Different Bank’s In-charge &
Rilationship Manager (RM) of Priority Banking Service that are given below:

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Chapter-4
Priority (Imperial)
Banking Service in UCBL
Overview Of Imperial Banking Service in Source of Client Acquisition
UCB
Operation Module
Proposed Operating Location
Document Needed For Imperial Account
Organogram
Financial stipulation
Value Proposition
Cancellation of Priority Service
Service Proposition
Future Proposition
Imperial Banking Service Offerings
Instruction Manual
Eligibility Criteria for UCB IMPERIAL &
Address of UCB Imperial Banking
Criteria to remain Eligible
Service
Target Customer
Picture of UCBL Imperial
Source of prospective Clients

Area Based Existing Customer of UCBL who
are eligible for Imperial

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“WELCOME TO THE MAGNIFICENT OF UCB IMPERIAL”
UCB imperial is more than privilege banking services. It is about recognizing customer needs
and making their wealth come alive through Returns, Rewards and relationships.

UCB Imperial banking product proposition offers banking, borrowing, protection and
investment, exclusive new products along with a high level of service by professional
relationship managers to meet customer specific needs.

4.1 Overview Of Imperial Banking Service in UCB

I found that since the launch of retail banking, UCB has achieved considerable business growth
in a very short time and UCB has established itself as one of the leading brands in Retail
Banking Sector through its wide range of personal (customized) banking products. A key
contributor to retail success has been the growth from its high-end segment of customers. This
segment constitutes less in number of customers but contributes a big percentage of total
consumer deposits. Serving a few High Net Worth clients in the portfolio would help to achieve
a major portion of the retail revenue. In order to retain, deepen and grow this segment, to
recognize and reward their value to the bank, it is felt that there is a need to provide
differentiated service to them in the form of “Imperial Banking”.

UCBL starts its priority banking in 3rd June 2012. The current name of UCB priority banking is
Imperial. Retail Banking Division hereby proposes to rename “UCB Royal” as “UCB
IMPERIAL” for its Priority Banking concern. This change of identity has been proposed to keep
the synergy within the Retail top of the shelf products, which are in the line of offer for UCBL
very ultra high end individual customers including the following key Components:
• Tailoring services to individual client requirements
• Anticipation of clients needs
• A long-term relationship orientation
• Personal contact
• Discretion
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The dominating factors that drive the concept of Imperial Banking is “To Retain & Attract the
High Net-Worth Customers”. Imperial Banking Enhance brand loyalty, Creates powerful brand
image, hence achieves competitive advantage that can retain existing market share and grab new
ones.

I notice that Imperial Banking focuses on 5 main things:
1. Professional: - Here UCBL have professional Dedicated Bankers to Meet customer
Financial Needs and Goals.

2. Personal: - Exclusive Lounges for proper delivery of Good and Quality Service.

3. Profitable: - UCBL have Dedicated Relationship Managers who ensures customer for
proper delivery of service and special pricing to meet your daily requirements.

4. Imperial: - UCBL provide the Red Carpet welcome to their Lounges by giving imperial
client UCBL Imperial Banking VIP Card.

5. All customer are Crowed to UCBL.

4.2 Proposed Operating Location

Relevant officer told me that their proposed operating location is mostly in the area of:
Inside Dhaka Outside Dhaka
 Gulshan 1 (Year 1)  GEC- Chittagong (Year 1)

 Gulshan 2 (Year 1)  Agrabad-Chittagong (Year 1)

 Banani (Year 1)  Sylhet (Year 3, on the basis of the
economic indicator)
 Uttara (Year 1)
 Khulna (Year 3, on the basis of the
 Dhanmondi (Year 1) economic indicator)
 Eskation/ Mogbazar (Year 2)

 Mohammadpur (Year 2)

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4.3 Organogram

In the time of my observation I notice that Center Manager will be FAVP & Above, under center
manager there will be RMs (SEO and above) and ARMs (SO and above). Moreover each lounge
will have Lounge Support Officer. Each lounge will have support staffs to keep the upkeep and
hygiene of the lounge, Peon and 2 runners to support the home delivery of the statements and
other non security items as requested by the customers.

Head of Retail

Head of Imperial

Center Manager Center Manager
Gulshan Branch Mirpur Road Branch

Business Support Support Business
Relationship manager Lounge Support Officer Lounge Support Officer Relationship manager

ARM ARM

4.4 Value Proposition
I find out that the key features of the value proposition for this segment will therefore be aligned
with the following characteristics:

 Exclusive Service Proposition: Access to dedicated relationship manager and an exclusive
lounge to conduct all banking/business in comfort and privacy with relationship pricing
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discounts and priority turnaround time for service delivery.

 Sophisticated Lifestyle: Imperial clients will enjoy benefits with distinctive branding/gift,
rewards/discounts at key outlets which will be perceived as good value to customers and
something which they will aspire to.

4.5 Service Proposition

 Premium Cards
Platinum Debit Cards

Platinum Credit Cards (VISA & Master)

 Preferential Services
Dedicated Relationship Managers

Doorstep Banking

Branded Cheque Book

 Preferential Pricing
Top up Loans

Standing Order

 Travel in Style
Access to International airport lounge

Medical & legal referral overseas

 Special Offers
Exclusive offers and discounts.

Lifestyle Offers

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4.6 Imperial Banking Service Offerings

Benefits and Preferred Pricing Provided by UCB:
a) UCB Imperial Clients are entitled to access certain benefits and Preferred Pricing
structured.

b) UCB reserved the right to amend or withdraw Imperial benefits and preferred Pricing at
any time upon giving prior notice.

Credit Charges:
a) UCB Imperial Clients are entitled to avail preferred Credit Pricing, With UCB reserves
the right to amend or withdraw at any time.

Fees and Charges:
a) Fees and Charges include Government charges.

b) All fees and Charges, including Government charges are subject to charge.

Imperial Lounge and Branch Privilege:
a) As an Imperial Client, Clients are allowed to use the Imperial Lounge. For branches
where Imperial Lounge/ Center are not present, Clients can direct their queries and
transactional needs to the branches Manager.

b) Any person other than Client himself/ herself bearing Imperial instruments is not eligible
to use Imperial Lounge and privileged services.

 Exclusive cash transaction environment

 Always fresh currency notes

 Preferential allocation of locker upon availability.

 Hotel/ Hospital/ Air ticket/ Rail way ticket booking

 Monthly/Quarterly statement; Monthly E-statement free

 Free SMS after every transaction to ensure safety of transaction.

 Preferential attention in all UCB branches

 Dedicated RM

 Home delivery service (Non cash Items)
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 Credit Card Privileges

 Welcome Gift Pack
 Pre Approved Credit Card (Duel Currency)
 Complementary Credit Card For Spouse(if married)
 Credit Limit from Tk. 5 Lac
 2 Free Supplementary Credit Cards
 No Temporary block of Cards
 Preferential Rates in Retail Products:

 1% to 1.5% less than the normal offering considering the previous historical volume
in Current/ Savings account only.

 0.5% less service charge
 50% Service charge for locker
 Fast track loan processing

 Travel concierge services

 locating the best flights,
 assisting with Visa requirements
 Access to more than 600 international airport lounges worldwide to make use of
business facilities and refreshments.

 Hotel booking assistance
 Foreign currency purchase
 Special protocol in arrival and departure lounge
 Arrange pick and drop to airport (Fees applicable)
 Travel loan (cross-selling)
 Medical Facilities:

 Treatment facilitation at affiliated hospitals
 Medical Loan(cross-selling)
 Children's Savings Account (Cross-Selling)

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 Direct Benefits: waiver of Charges:

 Ledger Fee
 Cheque Book issuance Fee
 Dollar Endorsement Fee
 Bank Certificate and Bank Statement Assurance Fee
 Debit Card Charge: BDT 100
 On-Line Transaction Fee
 Locker Fee 50% (Depending on the availability)
 ATM withdrawal limits BDT 2, 00,000.
 Dual Currency Debit card
 Proximity Identification: Software that notifies RMs through SMS Or pop-ups to
computer every time a UCB Imperial comes in range of Priority lounge

 Other Privileges: Invitation to Exclusive Events based on taste & Preferences

 Referral Program: Generate reward points by referring a new member to priority family
and enjoy exclusive rewards for achieving targets.

Rewards like luxurious trip, Shopping vouchers, Complementary dining experience etc

 Complementary Monthly Magazines (delivery at home/office)

4.7 Eligibility Criteria for UCB IMPERIAL
 Minimum Average Balance Requirement Membership:

 To be the client of UCB Imperial, Customer needs to maintain a minimum balance of
BDT 30, 00,000.00 (Taka Three Million) per month in either Savings or Current
Account or in combination of Savings and Current Account.

Four Million).

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 Customer maintaining BDT 30, 00,000.00 Savings/ Current deposit with 10, 00,000
or more as loan can be enrolled as Imperial Member.

 Special enrolment for socially renowned client, reference from Management or Board
(People who will be a spokesperson and opinion leader, having good balance in other
competitive banks and already availing such facility with other bank).


 Client must maintain UCB Imperial Deposit relationship with sufficient funds to
cover the minimum balance requirement.

 And/ or any other criteria as UCB may determine at its discretion from time to time.

4.8 Target Customer
Imperial banking is for the upscale retail customers; this service offering is aimed to attract high
net-worth individuals who require very personalized and customized banking solutions. UCB
choose Individual Fund as their target customer but not any corporate or other fund. Those who
have enough money to keep in bank they are also target customer for UCBL.

4.9 Source of prospective Clients
 Existing Clients:  Staff
Referring friends Poaching staff from competition
Referring Family
Referring work colleagues  Intermediaries:
 Marketing & Promotion: Financial advisors
Advertising Ambassadors
PR Endorsement Top government officials
Worksite Marketing
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4.10 Area Based Existing Customer of UCBL
who are eligible for Imperial
I found that at present UCBL have some customer in different branches and place who are
eligible to become an Imperial client are shown below:

Sl No:- Name of the Branch Number of Customers
1 Agrabad Branch 26
2 Banani Branch 38
3 Dhanmondi Branch 47
4 Foreign Exchange Branch 50
5 Gulshan Branch 49
6 Jubilee Road Branch 44
7 Kawran Bazar Branch 7
8 Mohakhali Branch 37
9 Mohammadpur Branch 21
10 Principal Branch 75
11 Mirpur Road Branch 50
12 Shahjalal Upshore Branch 5
13 Shantinagar Branch 18
14 Shylet Branch 32
15 Tejgaon Branch 9
16 Zindabazar Branch 9
17 Zinzira Branch 4
TOTAL Number of Customers = 471

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4.11 Source of Client Acquisition

1. Organization-based:

 Senior Management’s Personal Network

 Branches, Representative’s Office, Other Divisions, i.e. CBD, SME, ID etc.

 Co operations with complementary companies Intermediaries (financial Intermediaries,
individual with a professional network, individual with a social network)

 Existing Clients – Word of Mouth

2. Marketing activity-based:

 Advertising (Only in selected areas)

 Direct Marketing

 Collaboration with Third-Parties, e.g. clubs, organizations

 Internal / external cross selling

 Database marketing

4.12 Operation Module

Initial Customer Selection:
Initial customers are to be selected from the existing book where the customers will be selected
on the basis of eligibility criteria mentioned in Section 1.1 of this document.

Step 1: A query to be run on the basis of the average monthly balance criteria and identify the
eligible customers.

Step 2: Flag the customers in the system so that all the front end and back end can understand
the type of customer whenever they come across any transaction of this customer.

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Step 3: Carefully present the privileges and offers to the Imperial customers. Ensure proper
reception of the Imperial customer.

Step 4: Create branding and stationeries for Imperial exclusive communication tool
- Letter head
- Envelopes (Small, Medium, Large)
- Cheque book
- Welcome Kit
- Deposit slips

Step 5: Inform customers about their changed status and privileges and introduce their RMs with
them.

Initial Operation Establishment:
Structure: This will be an RM bases structure where ARMs will report to RMs and RMs will
report to Head of Imperial Membership.

4.13 Document Needed For Imperial Account

□ Imperial Account:
1. Accounts open by Minimum Balance Requirement.

2. Account Holders’ Photograph (2copy).

3. Photocopy of National ID/ Passport of the Account Holder.

4. TIN Certificate of the Account Holder.

5. Nominee Photograph (1copy).

6. Photocopy of National ID/ Passport of the Nominee.

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4.14 Financial stipulation

Particulars YR 1 YR 2 YR 3

No of Accounts booked 300 450 600
Min Avg Balance per A/C 3,000,000 3,000,000 3,000,000
Total Deposit Mobilized 900,000,000 1,350,000,000 1,800,000,000
Fund Available for Investment after CRR 724,500,000 1,086,750,000 1,449,000,000
and SLR (19.5%)
Cost of Deposit 11%
Avg Lending Rate 15.5%
Spread 4.5%
Spread (Taka) 32,602,500 48,903,750 65,205,000
Earning to be waived per A/C
Service Charge 300
Fee of both Debit and Credit 3500
Locker 3500
Others 5000
Statement 2400
Total Per A/C 14700
Total Fees Waiver 29400
Portfolio Waiver 8,820,000 13,230,000 17,640,000
Gross income 23,782,500 35,673,750 47,565,000
Expenses
Advertisement/ Promotion 4,000,000 4,000,000 4,000,000
Welcome Kits 100,000 300,000 600,000
Lounge operating expense 3,600,000 4,000,000 4,700,000
Misc (reimbursement to Sheraton for 2,000,000 2,500,000 3,000,000
using the Balaka/ Own VIP Lounge)

TOTAL 9,700,000 10,800,000 12,300,000
Net operating income 14,082,500 24,873,750 35,265,000

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4.15 Cancellation of Priority Service

Cancellation of UCB Imperial Service:

a. I find out that customer eligibility to be an Imperial Client and all associated benefits will
immediately cease to apply if:

i. If client do not pay the amount due to Bank under the agreement of the account or
any other UCB products and services.

ii. If client fail to maintain the minimum average balance requirement for three
consecutive months.

iii. The bank in its discretion may decide to cancel the facility.

iv. The Bank informs client that he/ she is no longer eligible for UCB Imperial
Banking.

4.16 Future Proposition
By the talking with relevant officer I hear that the future proposition for UCB Imperial is:

 SMS alert to customer’s when money Withdrawal/ Deposited in their Imperial account.

 Exclusive Imperial Phone Banking Service (call-centre service)

 Differentiated internet banking portal

 Interactive Sessions- like, online communication via chat.

4.17 Instruction Manual
I gain knowledge from Relevant officer that they have some instruction manual that given below:
a) All the term and conditions must be read by client in conjunction with the terms and
conditions detailed for every product.

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b) UCB Imperial Banking is only available to the client while client continue to be eligible
for the proposition. In the event that they cease to be eligible for UCB Imperial Banking,
client’s UCB Imperial Account relationships will automatically convert to a standard
account and will be subject to normal fees and charges as detailed in Regular “Schedule
of Charges”.

c) Charges are detailed in the brochure of UCB Imperial Banking Schedule of Charges, and
should be read in conjunction with the Schedule of Charges of UCB Regular Accounts.

d) Applicable service tax will be in addition to all charges.

e) All service and benefits offered are subject to Bangladesh Bank’s guidelines.

f) The Bank reserves the right to amend the terms, conditions or anything stated in different
communication materials.

g) In all cases, an account statement will be sent to Imperial client every 6 months.

h) UCB may at its discretion and for any purpose (including for the purpose of fraud
prevention, audit, the provision of services by any third party, debt collection, or if
required by any competent Government and regulatory body) disclose any information,
details or data relating to the Client or the Client’s transactions to any local authorities,
Bangladesh Bank, Government bodies, Judicial bodies in accordance to any requirement
of any provision of law and order of any court of law.

i) Client agrees to indemnify and keep UCB indemnified in the event of any dispute or
claim arising out of an account resulting in loss or damage suffered by UCB.

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4.18 Address of UCB Imperial Banking
Service
Imperial Banking in Dhaka

Imperial Banking Centers:

I note that Imperial Banking Lounges and relationship managers are located at the
following Priority Centers in Dhaka.

1. CORPORATE HEAD OFFICE
Plot- CWS-(A)-1, Road No- 34, Gulshan Avenue, Dhaka-1212
Phone :+88-02-8852500
Ex. 1001-1015
Mobile :01730-318848
E-Mail :
S.W.I.F.T :UCBLBDDHGAB
Routing Number :245261738

2. GULSHAN I.K TOWER
CONCORD I.K. Tower (1st Floor),
Plot No. CEN (A)-2, North Avenue, Gulshan-2, Dhaka-1212
Phone : +88-02-8824198, 8824564, 9895500,
Mobile :01711-881052,
Fax :+880-02-8824564,
E-Mail : S.W.I.F.T: UCBLBDDHGSN
Routing Number :245261725

3. MIRPUR ROAD BRANCH (UCB)
House # 12, Road # 05, Dhanmondi R/A, Dhaka-1205, Bangladesh
Phone :
Mobile :
Fax :+88-02-9671357
E-mail :

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4.19 Picture of UCBL Imperial

UCB Imperial opening Ceremony, 3rd July 2012 In charge of - UCB Imperial

UCB Imperial Client, you are allowed to use the Imperial Lounge
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Debit Card: Black Check used instead of keeping it Imperial Fascia
plain

Office File (Cover and Back) of account Opening Form Letter Head Page

Imperial Brochure Cover Page
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Chapter-5
Comparison of Priority
Banking Service in BD

General Comparison

Table & Chart

Comparison of Facilities

Graphical Comparison

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5.1 General Comparison
Priority banking service is comparatively new in the banking context of Bangladesh. Under this
banking service bank gives much more priority to their high valued and first class customer.
Some special privileges are provided to the first class or high valued customers by the bank
which is different from bank to bank because of high competition. Those Banks who has more
lounges can serve more customers & can attract the customer. In Bangladesh there are about
seven banks offering Priority Banking Service. In Bangladesh in term of lounge facilities, BRAC
bank has highest number of lounge (10 lounges), then EBL has 7 lounges and HSBC & SCB
both has 5 lounges. BRAC bank has 8 lounges inside Dhaka and BRAC, SCB, EBL has 2
lounge outside Dhaka. More Relationship Manager (RM) can serve more customers at a time.
They also can bring more customers from local area. In term of RM BRAC bank has 12
Relationship Manager and then EBL has 10, SCB has 6, HSBC has 4, and UCBL & MTBL both
has 2 RM. Some other employee needed for the help of RM as well as customer. More
employees can serve more customers at a same time. In term of other employee except RM
BRAC bank has about 35 employees, EBL has 23 employees, SCB & HSBC both has 15 and
UCB & MTBL both has 5 employees working right now. The entire bank try to attract the
customer by providing better serves then others because of high competition. They try to provide
more customized service as customer’s interest. They are providing service as they promised. As
a result customer except & prefer them. Customers are doing their transaction with the bank as
they prefer. From my direct observation I notice that at present HSBC has highest number of
existing customers (600 approximately) because in Bangladesh they started Priority service first
and it was 2005. Then BRAC has 500 customers (approximately), SCB has 450, EBL has 300,
UCBL has 450 and MTBL has 150 (approximately) existing customers. I found this information
by talking with relevant employee. From my opinion I think all the bank are getting better
response from the customer that’s why they are expanding their lounge, service and other
facilities. Priority Banking Service is moving towards a new dimension for entire bank in
Bangladesh as it is developing fast due to competition, deregulation, and better and customized
service than ever before.

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5.2 Comparison of Facilities
From my observation I find out that different banks provide different privileges for their clients
but many of them are common but some are different from others. Comparison of facilities is
given below:

Name of the Bank
Priority Banking Service privilege UCB HSBC BRAC SCB EBL MTBL
Priority based service at all bank branches      
Separate Customer Care Center 
Instant account statement & access ability      
lounge for holding meetings   
Preferential rate for all banking products      
Special rates on Bank loans      
Multi-city and special cheque book  
Free cheque book & debit card      
Waiver on account and credit card related      
charges
Assigned client a dedicated Relationship      
Managers
Financial consultation      
Gift and special logo/ sticker   
Discount in hotel, restaurant, shops, hospital      
Exclusive cash transaction environment    
Always fresh currency notes 
Monthly/Quarterly statement  
SMS alert after every transaction occurred
Home delivery service (Non cash Items)    
Dual Currency Debit card      
Complementary Monthly Magazines
Greater Credit limits      
Higher ATM limits      
Global Recognition      
International Banking  

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5.2.1 Table & Chart
Form my direct observation and going over, I found that different Bank has several lounges to
serve the Priority customer in several places, like:

Name of the Bank Total Number of Inside of Outside of
Lounge Dhaka Dhaka
United Commercial Bank (UCBL) 2 2
Hongkong & shanghai Banking 5 4 1
Corporation (HSBC)
BRAC Bank 10 8 2
Standard Chartered Bank Ltd. (SCB) 5 3 2
Eastern Bank Limited (EBL) 7 5 2
Mutual Trust Bank Ltd. (MTBL) 1 1

Number of RM (Relationship Manager) varies bank to bank as well as other employees, like:

Name of the Bank Number of RM Number of Other Employee
United Commercial Bank (UCBL) 2 5
Hongkong & shanghai Banking 4 15
Corporation (HSBC)
BRAC Bank 12 35
Standard Chartered Bank Ltd. (SCB) 6 15
Eastern Bank Limited (EBL) 10 23

From direct my observation I found that the entire bank that provide Priority Banking Service
has some existing customer. Existing customer vary bank to bank, like:

Name of the Bank Number of Existing Portfolio Holding by
Customer other Bank (in crore)
United Commercial Bank (UCBL) (approximately)
450 60
Hongkong & shanghai Banking 600 1300
Corporation (HSBC)
BRAC Bank 450 350
Standard Chartered Bank Ltd. (SCB) 450 1600
Eastern Bank Limited (EBL) 300 380

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5.2.2 Graphical Comparison

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Chapter-6
United Commercial Bank
Limited (UCBL)

Over View Of United Commercial Bank Ltd. (UCBL)

Vision, Mission and Corporate culture

Board of Directors

Products and Services

Other Information

Financial Position in a Glance

General Banking
Account Opening Section
Deposit Section
Cash Section
Local Remittance Section
Clearing Section

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6.1 Over View Of United Commercial Bank
Ltd. (UCBL)

United Commercial Bank Limited is known as UCBL, Sponsored by some dynamic and reputed
entrepreneurs and eminent industrialists of the country and also participated by the Government.
UCBL was established under the rules & regulations of Bangladesh bank & the Bank companies’
Act 1991, on the 3rd June 1983. United Commercial Bank Limited (UCB) has stepped into its
27th Anniversary on June 29, 2010. United Commercial Bank Ltd. (UCB) is one of the oldest,
leading & largest commercial banks in Bangladesh in terms of assets, deposits, profits, network,
clientele base and employees. Being a first generation bank in the private sector of Bangladesh,
the Bank has been playing a pivotal role in the economic activities of the country, and is firmly
engaged in the development of trade, commerce and industry through a creative and prudent
credit policy. The bank has a wide network of 125 branches across the nation. With UCB
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.

Predominantly UCBL has been indentified and perceived as a bank working only in the
corporate arena. With introduction of retail banking and card business, the image is gradually
shifting where individuals have started to believe that UCBL is not only a bank where the
corporate clients are only entertained; this is also the bank where individual banking needs are
being attended. 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. The Bank has in
its Management a combination of highly skilled and eminent bankers of the country of varied
experience and expertise successfully led by Mr. Muhammed Ali, a dynamic banker, as its
Managing Director and well educated young, energetic and dedicated officers working with
missionary zeal for the growth and progress of the institution.

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6.2 Vision, Mission and Corporate culture

VISION:
UCB vision is to be the bank of first choice through maximizing value for our clients,
shareholders & employees and contributing to the national economy with social commitments.

MISSION:
The mission of UCB is to offer financial solutions that create, manage and increase our clients’
wealth while improving the quality of life in the communities UCB serve.

Corporate Culture:

 Employees of UCBL share certain common values, which helps to create a UCBL
Culture.

 Happy Banking

 The clients come first

 Search for professional excellence.

 Openness to new ideas and new methods to encourage creativity.

 Quick decision making

 Flexibility and prompt response

 A sense of professional ethics

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6.3 Board of Directors

Chairman
Late Mr. Akhtaruzzaman Chowdhury, MP

Vice Chairman
Mr. Showkat Aziz Russell

Director & Chairman, Executive Committee
Mr. M. A. Sabur

Director & Chairman, Audit Committee
Mr. Md. Jahangir Alam Khan

Members
Mr. M. A. Hashem (Director)
Mr. Kazi Enamul Hoque (Director)
Hajee Yunus Ahmed (Director)
Hajee M. A. Kalam (Director)
Mrs. Nur Nahar Zaman (Director)
Mr. Saifuzzaman Chowdhury (Director)
Mr. Bazal Ahmed (Director)
Mr. Shabbir Ahmed (Director)
Mr. Nur Uddin Javed (Director)
Mr. Sharif Zahir (Director)
Mr. Tanvir Khan (Director)
Mr. Ahmed Arif Billah (Director)
Mrs. Setara Begum (Director)
Mr. Anisuzzaman Chowdhury (Director)

Managing Director AMD & Company Secretary
Mr. Muhammed Ali Mr. Mirza Mahmud Rafiqur Rahman

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6.4 Products and Services

Saving Account Multi Millionear
Currenr Account Locker Service
Online Service Home Loan
Credit Card Home Mortgage Loan
One Stop Service Auto Loan
Inward & Outward Remittances Education Loan
DPS Doctors Loan
Short Term Deposite (STD0 Travel Loan
Long Term Deposite Marriage Loan
Over Draft Advanced Against Loan
Secured overdraft Any Purpose Loan
DPS+ Hospitalization Loan
Earning+ CNG Conversion Loan
Money Maximizer House Hold- Durable Loan

6.5 Other Information
Division Based Branch of UCBL:

Name of the division Number of branches
Dhaka division 56
Chittagong division 38
Sylhet division 14
Khulna division 07
Barishal division 01
Rajshahi division 07
Rangpur division 02
Total(till December, 2012) 125

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6.6 Financial Position in a Glance

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6.7 General Banking
General banking department is the heart of all banking activities. This is the busiest and
important department of a branch, because funds are mobilized, cash transactions are made;
clearing, remittance and accounting activities are done here. Since bank is confined to provide
the services every day. General banking is also known as ‘retail banking’. In UCBL Mirpur Road
Branch, the following departments are under general banking section:

1. Account opening section
2. Deposit section
3. Cash section
4. Remittance section
5. Clearing section
6. Accounts section
1. Account Opening Section:

Account opening is the gateway for clients to enter into business with bank. It is the foundation
of banker customer relationship. This is one of the most important sections of this branch,
because by opening accounts bank mobilizes funds for investment. Various rules and regulations
are maintained and various documents are taken while opening an account. A customer can open
different types of accounts through this department. Such as:

i. Current account.

ii. Savings (SB) account.

iii. Short Term Deposit (STD) & Short Noticeable Deposit (SND)

2. Deposit Section:

Deposit is the lifeblood of UCB. From the history and origin of the banking system we know that
deposit collection is the main function of a bank.

Accepting deposits
The deposits that are accepted by UCBL like other banks may be classified into,—

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1. Demand Deposits

2. Time Deposits

3. Cash Section:

Banks, as a financial institution, accept surplus money from the people as deposit and give them
opportunity to withdraw the same by cheque, etc. But among the banking activities, cash
department play an important role. It does the main function of a UCB i.e. receiving the deposit
and paying the cash on demand. As this department deals directly with the customers, the
reputation of the bank depends much on it. The functions of a cash department are described
below:

Functions of Cash Department:

1. Cash payment is made only against cheque.

2. This is the unique function of the banking system which is
Cash Payment
known as “payment on demand”.

3. It makes payment only against its printed valid Cheque.

1. It receives deposits from the depositors in form of cash.

Cash Receipt 2. So it is the “mobilization unit” of the banking system.

3. It collects money only its receipts forms.

4. Local Remittance section:
Carrying cash money is troublesome and risky. That’s why money can be transferred from one
place to another through banking channel. This is called remittance. Remittances of funds are
one of the most important aspects of the Commercial Banks in rendering services to its
customers.

Types of remittance:

 Between banks and non banks customer
 Between banks in the same country
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 Between banks in the different centers.
 Between banks and central bank in the same country

The main instruments used by the UCBL of remittance of funds are-

 Payment order ( PO)
 Demand Draft ( DD)
 Telegraphic Transfer (TT)

5. Clearing Section

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

Type of Clearing: 1. Outward Clearing

2. Inward Clearing

Cheque of UCBL AB Bank
AB Bank Cheque Cheque Bangladesh Bank Cheque
Principal Branch Principal Branch
Uttara Br.
Deposited in
UCBL
Gulshan Br.
Cheque

AB Bank
Uttara Branch
Cash

Cheque Converted to Cash

UCBL AB Bank AB Bank
Cash Bangladesh Bank Cash Cash
Principal Branch Principal Branch Uttara Branch

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Chapter-7
Findings, Recommendation
& Conclusion

Findings

Recommendation
Recommendation for Priority Banking Service

Recommendation for Imperial Banking Service

Recommendation for UCB (General Banking)

Conclusion

68 | P a g e

Md. hashibur rahman (internship report)

Md. hashibur rahman (internship report)

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