UBL main report

“Foreign Exchange Activities of Uttara Bank Ltd.”
Department of Accounting and Information Systems, Comilla University. Page | 1
1. Introduction
Bachelor of Business Administration (BBA) is an Academic Program and the Internship
Program is an important part of Bachelor of Business Administration (BBA). Internship
creates a unique opportunity for the student to apply their theoretical knowledge into practice
and gain valuable real world business experience. During the Internship Period, student can
also realize existing business condition apart from having opportunities to solve the problem
using various analytical tools.
Banking is now an essential part of our economic system. Modern trade and commerce would
almost be impossible without the availability of suitable banking service. The health of the
economy is closely related to the soundness of its banking system. Modern banks play an
important part in promoting economic development of a country. Banks provide necessary
funds for executing various programmers underway in the process of economic development.
They collect savings of large masses of people scattered throughout the country, which in the
absence of banks would have remained ideal and unproductive. These scattered amounts are
collected, pooled together and made available to commerce and industry for meeting the
requirements. Economy of Bangladesh is in the group of world’s most underdeveloped
economies. One of the reasons may be its underdeveloped banking system. Government as
well as different international organizations have also identified that underdeveloped banking
system causes some obstacles to the process of economic development. So they have highly
recommended for reforming financial sector. Since 1990, Bangladesh Government has taken
a lot of financial sector reform measurements for making financial sector as well as banking
sector more transparent, and formulation and implementations of these reform activities has
also been participated by different international organization like World Bank, IMF etc.
Economic history shows that development has started everywhere with the banking system
and its contribution towards financial development of a country is highest in the initial stage.
As a part of the internship Program of BBA Program requirement, I was assigned to do my
internship in Uttara Bank Limited, Ramna Branch for a period of three months (13 October
2014 to 12 January 2015). My task was about the Foreign Exchange Activities of the Uttara
Bank Limited. For this reason I tried my best to reveal the actual Foreign Exchange Activities
of the UBL. To find out the actual activities I collected data about the bank and analyzed the
data. From practical knowledge, we will be able to know real life situations and start a career
with some practical experience. Uttara Bank Limited is banking company incorporated in the
People’s Republic of Bangladesh with limited liability.
1.1 Origin of the Study
For any business school student, only curriculum activities are not enough for handling the
real business situation. So it is important to know about the field of business. This Internship
Report is originated as a partial fulfillment of the BBA Program on “Foreign Exchange
Activities of Uttara Bank Ltd.” which has been approved and assigned by UBL and working
as an internee in Uttara Bank Ltd, Ramna Branch from 13 October 2014to12January2015.During

this period the key learning point is how the host organization works with the help of the
internal supervisor. Internship Supervisor of the BBA Program is instructed by Md. Nazrul
Islam, Assistant Professor, Department of Accounting & Information Systems, Comilla
University. On the basis of working experience and under the supervision of him, it was a
great endeavor to prepare this report which relates to the theoretical knowledge with the
practical work situation.
1.2 Statement of the Problem
A single bank is highly connected with other banks for payment system and other functions
of bank. The failure of a single bank not only affects its shareholders and depositors rather it
affects rest other banks and even all rest other business. Now day’s different types of export
import activities are done by the commercial banks. Considering customers’ demands &
benefits, Bangladesh Bank formulates some rules and regulations for controlling the money
market & foreign exchange activities. Hence as the exporters and importers are switching from
one bank to another bank, so the banking growth decreases. Because the importers and
exporters see how much facilities the banks can provide them. Not only this, the importers
and exporters also see which bank can finish the formalities fast concerned in L/C. They also
see in how many days the money payment of L/C is done, and the money charged is also not
much. So, therefore now the importers and exporters who open L/C account in Uttara Bank
Limited, if they get a good offer then they immediately switch on to another bank. Besides at
present, UBL provides various kinds of foreign exchange services to their customers as per
rules of Bangladesh Bank. But in some cases, services of bank depends upon on its own
culture & activities of officials which varies from other banks. Then customers justify the
banking services by comparing with another bank. Because foreign exchange activities are
complex task in terms of banking. To accomplish that type of activities there is necessary to
hire some experienced experts for performing foreign exchange activities. Therefore, success
of UBL depends on the increase of customers if bank provides particular services to their
customers when they need. By analyzing some data in chapter four we will be able to say
what is going on Foreign Exchange Activities of UBL.
1.3 Rationale of the Study
In the present global economy, banking sector is the prerequisite to ensure better life for the
people of any country. But to establish a strong banking sector, it is required to have good
study in all operations of banking. For that we should do all of these operations step by step
& obviously we must have to know about Foreign Exchange Activities & transactions
procedure of banking sector. Foreign Exchange play a vital role in the financial sector of the
economy. We know that one country has to depend on another country for some goods and
services. So, it creates some money exchanging for each country. Banks facilitate exchanging
business very well. Therefore it creates the inflow and outflow of money which balances the
money earnings in total economy. It is very much important to know and understand the
contributions of this sector to the overall economic performance of the country. Thus, I have
decided to conduct the study on the Foreign Exchange Activities of Uttara Bank Limited. So,

it is also true for UBL to run with strong competition & to take proper action. On the other
hand, Internship Program of Accounting & Information Systems of Comilla University is a
partial requirement for the graduation of BBA students. I had been placed at Ramna Branch
of Uttara Bank Limited in order to do my Internship and I have to work considering all of this
mention above I have decided to work on this rational topic.
1.4 Objectives of the Study
The objective to prepare this report is to have practical knowledge on banking as academic
education is not enough to handle real corporate environment. So, the objective to prepare the
report is to learn and match the educational learning and the real world experience because I
have gathered theoretical knowledge from BBA Program and tried to match real world
experience with the theoretical knowledge. The objectives of the report are given below:
 To gain knowledge how UBL deals international trade and trade mechanism.
 To distinguish Export- Import procedures.
 To represent the all export & import related affairs & remittance affairs of UBL by
graphical presentation.
 To reveal the growth of export & import activities.
 To know the strengths and weakness regarding export and import business of UBL.
 To identify the problems related to Foreign Exchange Activities faced by the UBL.
 To know how is the satisfaction level of UBL’s L/C client UBL.
 To represent what types of analysis the bank undertakes for its financial events.
 To recommend solutions to the existing problems.
1.5 Methodology of the Study
1.5.1 Introduction
This report is a descriptive type of research, which briefly reveals the overall activities
performed by Uttara Bank Ltd. It has also been administered by collecting secondary data.
Annual reports of UBL were the major secondary data sources in this regard. But different
types of statistical information and analysis have given the proper information about Foreign
Exchange Activities. The study is performed based on the information extracted from
different sources collected by using a specific methodology. This report is analytical in nature.
1.5.2 Sources of Data
The data collection method to study consists of both of primary and secondary sources. But
majority of the information was collected from secondary sources.
Primary Data Collection:
The primary data has been mainly collected from asking the respective senior officers,
personnel and from manager of the bank. More importantly detailed information about banking
has been taken from extensive interview from the bank’s personals especially from the officers

of UBL (Ramna Branch).The study is conducting where data were collected from primary
sources using the following methods:
a) Observation Method: Observation method may be defined as systematic watching of facts
and events occurring in the field of study. All the activities of banking services are observed
to identify the implementation, supervision, and monitoring and repayment practice.
b) Interview Method: Interview is a face-to-face situation where the interviewer asks a
person being interviewed (the respondent), questions to obtain answer pertinent to study. To
get real information about foreign exchange performance of UBL, some respondents & L/C
clients are asked directly.
c) Analysis: The analysis has been done to achieve the objectives of operation system study,
banking system of the bank. The necessary data are to be taken and analyzed in a systematic
manner.
Besides these methods that will be used to collect the primary data needed for conducting the
study have been collected from the following sources:
 Discussion with officials of commercials and individual Foreign Exchange
department of UBL.
 Practical work exposures and observation in different desks of the branch covered.
 Scheduled survey, informal discussion with professionals and conversation with
clients.
 Study of different files of different section of the bank and some access to database.
 Relevant file study as provided by the officers concerned.
 Interview with the respective employee or personnel.
 Expert opinions.
Secondary Data Collection
Secondary sources are permanent and printed sources of information that are collected from
Internet, different article of UBL published in journals and magazines. The secondary data of
this report are collected from UBL to clarify different conceptual matter, interest and different
articles UBL published. This are-
Bank's Annual Report and publication of statements.
Different relevant reference books, newspaper, journals related to the banking sector.
Information from Uttara Bank’s Website.
Unpublished UBL data from the branch.
Internet was also used as a source of information.
Circular published by Bangladesh Bank.
Textbook.

1.5.3 Sample Selection
 Sampling Frame: The research was conducted in Uttara Bank Limited, Ramna
Branch.
 Sampling Element: Respective officers and Foreign Exchange clients of the branch.
 Sampling Procedure: For the research I have used probability Convenience sampling
technique.
 Sample Size: Foreign Exchange clients 40. So, the sample size is 40.
1.5.4 Data Collection Procedure and Instruments
For the “Foreign Exchange Activities of Uttara Bank Limited” I mainly used Secondary data.
Besides this I also have done qualitative and quantitative analysis with the data I have
collected from the respondents. I had developed a questionnaire that contained 10 questions.
Data collection has been done on a random basis. The sample size is 40. The results will be
represented through Column charts & pie chart. My result will come out through analyzing
those data.
1.5.5 Data Analysis Tools
Several tools were used to prepare and analysis data for the results for creating report on
Foreign Exchange Activities of Uttara Bank Ltd. These are:
Graph Chart.
Microsoft Word.
Microsoft Excel.
Clustered Chart.
Pie Chart.
1.6 Scope of the Study
Foreign Exchange Activities of a bank is very important and critical matter. It needs both
quantitative and qualitative information. It needs also the data regular years. Now in this
global arena the activities of commercial banking are very fast. This report is an attempt to
analyze the every banking operation of the Uttara Bank Ltd. This study focuses on the
condition of Foreign Exchange Activities of Uttara Bank Ltd. & how well it is going on. This
report has the crisp details of the procedure of the Foreign Exchange Activities. Along with
that, a relevant stream of discussion has been made on the theory and policy issues relating
to Foreign Exchange Activities. I had a great opportunity to have first-hand knowledge of all
the banking activities practiced by the Uttara Bank Limited. The scope of the study is limited
to organizational setup, functions and performances:
Recent performance of UBL in terms of deposit, investment and foreign exchange.
To analyze the export import position of UBL.
To analyze the banks current exchanging operation flows performed by UBL.

To obtain practical experience about general banking activities by involving such type
of program.
To build professional carrier in the banking sectors as well as any exchange providing
institution.
1.7 Limitations of the Study
Time Limitation: To complete the study, time was limited by three months. It was
really very short time to know details about an organization like Uttara Bank Ltd. A
huge amount of time needed to create a good report on Foreign Exchange Activities
of any financial organization.
Inadequate Data: Lack of available information about the business activities of
Uttara Bank Ltd. Because of the unwillingness of the busy key persons, necessary data
collection became hard. The employees are extremely busy to perform their duty.
Lack of Record: Large-scale research was not possible due to constrain and
restrictions posed by the organization. Unavailability of sufficient written documents
as required making a comprehensive study. In many cases up-to-date information was
not available.
Lack of Experiences: Lack of experiences has acted as constraints in the way of
meticulous exploration on the topic. Being a member of the organization; it was not
possible on my part to express some of the sensitive issues.
Confidentiality of Data: Every organization has their own secrecy that is not revealed
to others. While collecting data on UBL, personnel did not disclose enough
information for the sake of confidentiality of the organization.
Limited Area: Another important limitation was my working area. I have completed
my Internship Program at Ramna Branch. But UBL has 220 branches. So it was not
possible to gather knowledge about the bank as a whole.
Though I have prepared few reports earlier but I have never prepared such an extensive report
before this one. Naturally there is a chance of mistakes in the report but best efforts have been
applied to minimize the errors.

2. Overview of the Uttara Bank Ltd.
2.1 Historical Background of Banking Industry of Bangladesh
The formally known ‘State Bank of Pakistan’ was renamed as ‘Bangladesh Bank’ right after
Bangladesh’s independence. The Bangladesh Bank automatically became official foreign
exchange reserve institute. It was too accountable for currency control, monitoring exchange
and credit control. In the early 1970s, the government decided to permit foreign banks to
continue their business and nationalize the local banks. In that very decade of 1970s, the
primary concern of the government was to develop the country’s agricultural industry. This
resulted in the ‘Krishi Bank’ extending loans to more farmers. In the later decades, however,
the county’s focus shifted to industrialization; resulting in various difficulties in the economic
growth process. Lack of proper private activity guidelines and proper methods on loan giving
were more significant of these problems. It was not until the late 1980s that these difficulties
were being overcome and compensated for the agro sector. However the financial institutions
failed to recover the loans the industrial sector. Interestingly, Grameen Bank has set an ideal
example of how things should be managed during this devastating time. The bank gave out
small amount of loans to the poor population in order for themselves to be self-employed.
The selection process for giving out these loans was extraordinary. They gave loans mostly
to women who were subordinated; these women became self-employed and hence paid back
when were helped with guidance to run their business. In the mid ‘1980s, the government
adopted new policies for recovery. It did not work. Government-owned banks continued to
fail on recovering the loans. In the 1990s, many private banks started to emerge. Local group
of companies became aggressive in investment so the money flow was rather
big. Bangladesh Bank played key role in managing these private banks with modern outlook.
As consciences the banking sector grew many folds.
Throughout the 2000s, governments maintained positive economic policies. The economy
grew, so did the Bangladesh's banking sector and business sector. Since 2011 however, many
banking scams took place, mainly at government owned banks. This created a bad vibe which
is still to recover from.
2.2Profile of the Uttara Bank Ltd.
Uttara Bank-one of the largest and oldest private-sector commercial bank in Bangladesh, with
years of experience. At first Uttara Bank was established in 1964 named Eastern Banking
Corporation. After liberation war it named Uttara Bank. In 1984 published market share and
named Uttara Bank Limited. Uttara Bank is one of the oldest and largest commercial banks
in private sector in Bangladesh, with years of experience. Adaptation of modern technology
both in terms of equipment and banking practice ensures efficient service to clients. 220
branches at home and 600 affiliates worldwide create efficient networking and reach
capability. Uttara Bank is a bank that serves both clients and country. The bank is listed in
the Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly
quoted company for trading of its shares. It operates through 220 fully computerized branches
ensuring best possible and fastest services to its valued clients. The bank has more than 600

foreign correspondents worldwide. Total number of employees nearly 3,562. The Board of
Directors consists of 15 members. The bank is headed by the Managing Director who is the
Chief Executive Officer. The Head Office is located at Bank’s own 18-storied building at
Motijheel, the commercial center of the capital, Dhaka.
2.3 Mission, Vision and Objectives
2.3.1 Mission
 Creating and maintaining a set of hard working and efficient employees.
 To extend financial assistance to poorer section of the people.
 To achieve balance growth & equitable development.
 Maintaining the maximum ethical standards community accountability praiseworthy
of a leading corporate citizen.
 Continuously improving profitability, productivity and thereby enhancing shareholder
value.
2.3.2 Vision
 To provide quality service to the customer.
 To set high standard of integrity.
 Bring total satisfaction to its clients, sponsors and employees.
 To be leading commercial bank in the country and contribute maximum of the welfare
for the people of the country.
 Prime objective is to deliver a quality that demonstrates a true reflection of its vision.
 Excellence in banking.
2.3.3 Objectives
 Paying special attention to the areas, which are under developed.
 To develop SME’S, foreign remittance, foreign trade.
 To increase industrialization in the country.
 To provide employment opportunities.
 To make people more of mind to have saving habits.
 To increase the services (backed by technology) by efficient employees.
 To increase deposit mobilization.
 For smooth functioning of foreign trade, establish large foreign network.
 To expand the more credit facilities for the customers.
 To maintain a good position in the competitive banking sectors in Bangladesh.
 To ensure growth and development of the bank.
 To use resources of the bank efficiently.
 To get more deposits.
 To participate in development of the country.

2.4 Corporate Information
Particulars Data
Registered name of the
company
Uttara Bank Limited
Legal Form
Uttara Bank Ltd. had been a nationalized bank in the name of
Uttara Bank under the Bangladesh Bank (Nationalization)
order 1972, formerly known as the Eastern Banking
Corporation Limited which started functioning on and from
28.1.1965. Consequent upon the amendment of Bangladesh
Bank (Nationalization) order 1972, the Uttara Bank was
converted into Uttara Bank Limited as a public limited
company in the year 1983. The Uttara Bank Ltd. was
incorporated as a banking company on 29.6.1983 and
obtained business commencement certificate on 21.8.1983.
The Bank floated its shares in the year 1984. It has 220
branches all over Bangladesh through which it carries out all
its banking activities. The Bank is listed in the Dhaka Stock
Exchange Ltd. and the Chittagong Stock Exchange Ltd. as a
listed company for trading of its shares.
Registered Office 47, shahid Bir Uttam Asfaqus Samad Sarak (Former 90,
Motijheel Commercial Area) Motijheel, Dhaka-1000,
Bangladesh. GPO Box: 818 & 217
Telephone PABX 9551162
Telefax 88-027168376,88-02-9553081, 88-02-9560820 & 88-02-
9568941
Corporate Website www.uttarabank-bd.com
Email uttara@citecho.net, ublmis@uttarabank-bd.com,
ublidgen@uttarabank.com
Chairman Mr. Azharul Islam
No. of Branches 220
No. of ATM Booths 10
SWIFT Code UTBLBDDH
No. of Employee 3769
No. of Shareholders 82,081
Human Resources
Development
1,958
Training Institution 1
Table 2.4: Corporate Information

2.5 Overview of Ramna Branch
I was assigned at the Ramna Branch of Uttara Bank Limited to complete my Internship
Program. During my Internship Program I had a lot of learning, but most importantly I
realized how to work under the pressure of responsibilities. This practical orientation is
necessary for the development and preparation of a person before entering into the corporate
world. The things that I have learned at Uttara Bank are:
Meaning of responsibility.
Necessity of commitment.
Punctuality and regularity is very important.
Ability to interact with different sorts of people.
Uttara Bank Limited has always been prepared the Internship Program for its internees. It is
strictly followed by both parties. Uttara Bank in Ramna Branch was opened in the 02 April
1985 at Ramna, Dhaka with 8 employees. The age of this branch is 30 years, it is being
successfully operated its activities from the beginning of establishment.
Ramna Branch at a Glance
Particulars Data
Address 21/1 Purana Paltan,Mukti Bhaban(1st floor)
,Dhaka-1000.Bangladesh
Phone 9551154, 9565764
Email ublramna@dhaka.net
Total Number of Deposit accounts 4053
Total number of Loan Accounts 382
Loan Deposit Ratio 18 %
Weighted Average Interest Rates 16%
Deposit Amount Tk. 698831(thousand)- Up to November 2014
Loan Amount Tk. 633376 (thousand)- Up to November 2014
Table 2.5: Ramna Branch at a Glance

2.6 Products & Services of UBL
Products & Services Types of Each Product & Service
Deposit Products
Savings Account, Special Notice Deposit, Fixed Deposit Receipt
Account, Double Benefit Deposit Scheme, Monthly Deposit
Scheme, Uttaran Marriage Deposit Scheme, Uttaran
Swapnapuran Deposit Scheme, Uttaran Education Deposit
Scheme, Monthly Profit Scheme.
Special Loan Schemes 1.Uttaran Consumer Credit Scheme
2. SME Loan
Women Entrepreneur’s Loan Scheme, Uttaran Small Business
Loan(USBL) Scheme, Loan for Service Concern, Loan for
Trading and Other Concern, Loan for Manufacturing Concern.
3. Other Loan
Personal Loan, Building Repair Loan, Loan Against FDR, Loan
Against DPS.
Lease Services & Other
Credits
Over Draft, Micro Credit, Export Credit, Import Credit, Bills
Purchases, Loan on Securities, Loan on Secured Mortgage,
Payment Against Documents, Loan Against Imported
Merchandise, Export Development Loan, Agricultural Loan,
Industrial loan, Industrial Lending(Term & Working Capital),
Internal trade, Housing Loan, Bills Discounted & Purchased.
Foreign Exchange FCDA (Foreign Currency Deposit Account), NFCDA (Non
Foreign Currency Deposit Account), RFCDA (Residential
Foreign Currency Deposit Account).
Remittance &
International Services
Pay Order, Demand Draft, Electronic Fund Transfer (EFT),
Instant Cash, Express Money, Money Gram, Instant Cash,
SWIFT Service, International Money Order.
Table 2.6: UBL Products and Services.

2.7 Green Banking of UBL
Environment friendly banking is called Green Banking. Environmental concern is at the
center of the green banking strategy. Green Banking is like a normal bank, which considers
all the social and environmental factors. It is also called as ethical bank, environmentally
responsible bank, socially responsible bank, or a sustainable bank and is expected to consider
all the social and environmental factors. The approach to Green Banking varies from bank to
bank, however, broad objectives of the banks are to use their resources with responsibility
avoiding waste and giving priority to environment and the society. Ethical banks sometimes
work with narrower profit margins than traditional ones. A Green Bank never invests in the
environment threat project. The environmentalist bank is Green Bank. As green initiatives
sweep across the globe, more and more banks have been adopting green banking practices
that are connected with both internal operation and product ecology. Bangladesh Bank, vide
BRPD circular No.2 dated February 27,2011 has advised the banks to adopt a comprehensive
Green Banking policy in a formal and structured manner in line with global norms so as to
protect environmental degradation and ensure sustainable banking practices. Green Banking
policy needs to be covered through time frame which will be segregated into 3 phases. The
time lining for the actions to be taken under different phases is given as under:-
Phases Duration
Phase- i should not exceed December 31, 2011
Phase –ii should not exceed December31, 2012
Phase –iii should not exceed December31, 2013
Table 2.7: Different phases given by Bangladesh Bank.
UBL is careful enough about the above time lining. They have already invested near about
04.50(Four) crore as Green Finance in 2013.Uttara Bank Limited is so much committed to
play an important role for the implementation of Green Banking challenges. UBL has taken
rigorous steps towards Green banking goals. They hope that, it will create a new horizon in
the banking sector. The following years Green Banking investment in BDT (crore):
Years Taka(Crore)
2013 3
2012 4
2011 3
Table 2.7: Green Banking Investment in BDT (Crore).

Figure 2.7: Green Banking Investment.
2.8 CSR Activities of UBL
CSR is an integral part of our corporate culture and ethics. Uttara Bank Limited considers
socially responsible activities an important part of its culture, identity and business practice.
It has a deep commitment, loyalty and a high sense of responsibility to the nation and its
people. As part of its CSR, the bank contributes greatly to the nourishment of the country’s
arts, culture and sports and to combat all natural calamities. As part of its CSR, the bank
contributes to the nourishment of the country’s arts, culture and sports and to combat natural
calamities. The following CSR activities of 2013:
SL. No. Sector CSR Activities(2013) Expenditure
Incurred(in
Crore)
01. Sports Bank donated to
Olympic Association
(75.00 lac) and Archery
in 2013 for making
games more popular &
dynamic in Bangladesh
and bringing it in
remarkable position in
international level.
1.25
02. Disaster Management Bank has donated
Financial assistance to
martyred army officers
family killed in BDR
carnage, Prime
Ministers Relief Fund,
Warm cloth etc.
Tornado affected
people in B.Baria.
2.11
03. Education To make the human a
resource education is
must. Keeping this
view in the mind bank
.30
0
1
2
3
4
2013 2012 2011
3
4
3
Green Banking Investment

has been giving priority
to the education sector.
Bank donated in
different educational
institution.
04. Treatment Bank donated to
Mizanur Rahman,
Jahangir Alam Bappy
for treatment.
.01
05. Agriculture Bank donated to
distressed & landless
women for fishing
culturing and orange
plant for free
distribution of the
farmers.
.01
06. Arts & Culture Bank donated to Nari
Uddokta Somabesh and
Anandamela.
.01
Total 3.69
Table 2.8: CSR activities (2013)
2.9 Corporate Governance
Fairness, transparency, accountability, and the responsibility are the minimum standard of
acceptable corporate behavior today. A sound corporate governance practices has consistently
been followed in carrying out the operation of UBL. The bank management is smoothly
running the day to day activities of the bank within the policy guidelines of the board of
directors and in accordance with the legal and regulatory framework of different regulatory
bodies of the county. The main aspects of corporate governance are:
Figure 2.9: Main Aspects of Corporate Governance of UBL.
Board of
Directors &
Committees
Legal &
Regulatory
Complianc
Disclosoure &
Transparency
Risk
Management
Review of
Activities

2.9.1 The Board of Directors
Name of Directors Designation
Mr. Azharul Islam Chairman
Iftekharul Islam Vice- Chairman
Badrunnessa (Sharmin) Islam Member (Director)
Syed A.N.M Wahed Member (Director)
Major General Prof. M.A
Mohaiemen(Retd)
Member (Director)
Eng. Tofazzal Hossain Member (Director)
Muhammad Quamrul Ahsan Member (Depositor Director)
Asif Rahman Member (Director)
Mr. Faruque Alamgir Member (Director)
Arif Rahman Member (Director)
Dr. Md. Rezaul Karim Mazumder Member (Independent Director)
M. Tajul Islam Member (Depositor Director)
Prof. Dr. Abu Hossain Siddique Member (Independent Director)
Col. Engr. M. S. Kamal (Retd.) Member (Independent Director)
Shaikh Abdul Aziz Member (MD & CEO)
Md, Fazlur Rahman Secretary
2.9.2 Executive Committee
SL. NO. Name of the Director Status With the
Bank
Status with the
Committee
01. Mr. Azharul Islam Independent
Director
Chairman
02. Iftekharul Islam Director Member
03. Col. Engr. M. S. Kamal (Retd.) Director Member
04. Md. Fazlur Rahman Director Member
05. Muhammad Quamrul Ahsan Depositor Director Member
06. Mr. Asif Rahman Director Member
07. Shaikh Abdul Aziz MD & CEO Member

2.9.3 Audit Committee:
Bank
Status with the
Committee
01. Dr. Md Rezaul Karim
Mazumder
Independent
Director
Chairman
02. Faruque Alamgir Director Member
03. Prof. Dr. Abu Hossain Siddique Independent
Director
Member
04. Md. Fazlur Rahman Director Member
2.9.4 Risk Management Committee:
Bank
Status with the
Committee
01. Iftekharul Islam Director Chairman
02. Col. Engr. M. S. Kamal (Retd.) Director Member
03. M. Tajul Islam Depositor Director Member
04. Prof. Dr. Abu Hossain Siddique Independent
Director
Member
05. Shaikh Abdul Aziz MD & CEO Member
06. Md. Fazlur Rahman Director Secretary
2.9.5 Credit Rating
Credit Rating Agency of Bangladesh Limited (CRAB) has upgraded the long term rating of
Uttara Bank Limited to “AA3” (pronounced as Double A three) from A1 and retained the
Short Term rating at “ST-2” for the year 2011. A comparative position of the credit Rating of
Uttara Bank Ltd. for the year 2011 and 2010 is furnished below:
Particulars Rating Results
Terms Long Term Short Term
Surveillance Rating
2012
“AA3”
(Very Strong Capacity & Very High
Quality)
ST-2
(High Grade)
Date of Rating 30.06.2013
Validity 1 (One) Year 1 (One) Year
Commercial Banks rated “AA3” have very strong capacity to meet their financial
commitments. AA3 is judged to be of very high quality and is subject to very low credit risk.
Commercial Banks rated ST-2 are considered to have strong capacity for timely repayment.
Commercial Banks rated in this category are characterized with commendable position in
terms of liquidity, internal fund generation, and access to alternative sources of funds. The
rating reflects the Bank’s strength in risk weighted capital adequacy, satisfactory profitability,
improving trend in asset quality and surplus provision.

2.10 Corporate Logo and Corporate Slogan
A corporate logo is a distinctive design, mark or symbol that uniquely identifies a company.
A corporate logo is powerful corporate identity tool and, as the symbol by which public
recognizes a firm, is in some cases more valuable than the physical assets of the firm.
A slogan is an advertising tag-line or phrase that advertisers create to visually express the
importance and benefit of their product. The UBL’s slogan is-
"Nourished by the age old heritage of Bengal”
2.11 Organizational Structure of UBL:
Managing Director(MD)
Additional Managing Director(AMD)
Deputy Managing Director(DMD)
Executive General Manager(EGM)
General Manager(GM)
Deputy General Manager(DGM)
Assistant General Manager(AGM)
Senior Principle Officer(SPO)
Principle Officer(PO)
Senior Officer(SO)
Officer Grade-2
Assistant Officer

2.12 Financial Overview of UBL
2.12.1 Return on Assets (ROA)
Return on Assets ratio of a bank gives an idea of how efficiently a bank is using its assets to
generate profit. The formula of ROA is:
ROA = Earnings available for Common Stockholders/Total Assets × 100
The Return on Asset ratios of Uttara Bank Limited from 2009-2013 are given below:-
2009 2010 2011 2012 2013
1.54% 1.91% 1.69% 1.00% 0.99%
Table 2.12.1: Return on Assets (ROA).
Figure 2.12.1: Return on Assets (ROA)
Interpretation: In this case the profit yields as result of the employment of the assets in a
bank. In the table no- 2.12.1 and figure no- 2.12.1 of Return on assets Ratio of Uttara Bank
Limited it is noticed that there is major fluctuations in the last five year. In 2010, the ratio
increased to great level. This was because in that year earnings available for common
stockholders in creased to great level. But after that year there was a decreasing trend in this
ratio because of declining rate of increment in earnings.
1.54%
1.91%
1.69%
1.00% 0.99%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
2009 2010 2011 2012 2013
Return on Assets
Years

2.12.2 Return on Equity (ROE)
Return on Equity is a ratio that measures a corporation's profitability by revealing how much
profit a company generates with the money shareholders have invested. The formula of ROE
is-
ROE = Earnings available for common stockholders / Common stock equity× 100
The Return on Equity ratios of Uttara Bank Limited from 2009-2013 are given below:-
2009 2010 2011 2012 2013
17.80% 18.02% 17.13% 12.62% 12.27%
Table 2.12.2: Return on Equity (ROE).
Figure 2.12.2: Return on Equity (ROE).
Interpretation: The ratio was highest during the 2010. This is because increase in Earnings
available for common stockholders at a higher incremental rate than the increase in Common
stock equity in that year. In 2012 and 2013 there was a heavy fall in this ratio. The Earnings
available for common stockholders in those years decrease at higher rate that is from TK.
3000.3 million to TK.2536.4 million and TK.2680.4 million respectively. And the
shareholders equity also increased in those years from previous years that are from TK.9, 634
million to TK. 9,796.9 and 10,679.4 million respectively.
17.80% 18.02%
17.13%
12.62% 12.27%
0.00%
5.00%
10.00%
15.00%
20.00%
2009 2010 2011 2012 2013
Return on Equity
Years

2.12.3 Earnings per Share (EPS)
The term Earnings per Share represents the portion of a company’s earnings, net of taxes and
preferred stock dividends that is allocated to each share of common stock. Earnings per Share
are calculated as follows:
Earnings per Share = Earnings available for common stockholders / Number of common
stock outstanding
The Earnings per Share of Uttara Bank Limited from 2009-2013 are given below:-
2009 2010 2011 2012 2013
69.19 5.40 5.74 3.74 3.60
Table 2.12.3: Earnings per Share (EPS).
Figure 2.12.3: Earnings per Share (EPS).
Interpretation: In case of EPS if the trend is positive, then the bank is either generating an
increasing amount of earnings or buying back its stock. Conversely, a declining trend can
signal to investors that the bank is in trouble which can lead to a decline in the stock price.
There was denomination of share (face value) from tk. 100/- to 10/- has been changed on
05.01.2011 and the EPS has been calculated based on new number of shares as on
31.12.2010.In the above table no- 2.12.3 and figure no- 2.12.3 of Earnings per Share of Uttara
Bank Limited we see a huge change in EPS between 2009 and 2010 to 2013 because of this
split. The trend of EPS was decreasing in nature in the last five years. The main reason behind
this is the gradual increase in the number of shares outstanding which was higher than the
increase in Earnings available for common stockholders.
69.19
5.4 5.74 3.74 3.6
0
20
40
60
80
2009 2010 2011 2012 2013
Earnings Per Share
Years

2.12.4 Payout Ratio
The payout ratio or dividend layout ratio is the percentage of a company’s earnings paid out
to investors as cash dividends. The payout ratio is calculated as the percentage of earnings
paid out as dividends.
Payout Ratio = Cash Dividends / Net Earnings for the period × 100
The Payout Ratio of Uttara Bank Limited from 2009-2013 are given below:-
2010 2011 2012 2013
20% 20% 15% 15%
Figure 2.12.4: Payout Ratio.
Figure 2.12.4: Payout Ratio.
Interpretation: From the trend of Payout Ratio showed in table no- 2.12.4 and figure no
2.12.4- we see that the rate was high in 2010 and 2011 with a value of 20% because of higher
earnings. But in 2012 there was fall in the bank’s earnings. For this reason the rate of dividend
fallen and it continued to 2013.
20.00% 20.00%
15.00% 15.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2010 2011 2012 2013
Payout Ratio
Years

2.12.5 Debt to Total Assets Ratio
Debt to Total Assets Ratio is laid out the percentage of a company total asset the change into
total debt. The ratio is calculated as follows:
Debt to Total Assets Ratio = Total Debt / Total assets× 100
The Debt to Total Assets Ratio of Uttara Bank Limited from 2009-2013 are given below:-
2009 2010 2011 2012 2013
91.37% 89.43% 90% 92.08% 92%
Figure 2.12.5: Debt to Total Asset Ratio.
Figure 2.12.5: Debt to Total Asset Ratio.
Interpretation: The higher the percentage of debt to total asset ratio, the greater risk that the
company may unable to meet its maturing obligations. From the trend of Debt to Total Assets
Ratio of UBL showed in table no-2.12.5 and figure no- 2.12.5 we see that the bank has
financed a large amount of its total assets with debt. All of the years except 2010, having 90%
or more than 90% debt to total asset ratio. The ratio was highest during 2012 with a higher
value of debt that is tk. 1, 13,884 million. The main reason behind this high debt to total asset
ratio is the increasing amount of deposits of UBL.
91.37%
89.43%
90.00%
92.08% 92.00%
88.00%
88.50%
89.00%
89.50%
90.00%
90.50%
91.00%
91.50%
92.00%
92.50%
2009 2010 2011 2012 2013
Debt to Total Assets Ratio
Years

2.12.6 Financial Highlights of UBL at a Glance
(BDT in Million/Percentage)
SL. Particular 2013 2012 2011 2010 2009
Income Statement
01. Gross Income 15,245.1 13,674.3 10,668.2 8768.2 7654.4
02. Gross Expenditure 12,109.7 10412.9 7517.9 5701.3 5140.5
03. Gross profits 3135.4 3261.4 3150.3 3066.9 2513.9
04. Pre Tax Profit 2680.4 2536.4 3000.3 2801.9 2188.9
05. Post Tax Profit 1310.4 1236.4 1650.3 1551.9 1105.2
Balance Sheet
06. Authorized Capital 6000.0 6000.0 5000.0 5000.0 3200.0
07. Paid up Capital 3637.1 3306.4 2875.2 2396.0 1597.3
08. Reserve Fund and other
Reserves
7042.3 6490.5 6758.8 6214.8 4609.6
09. Shareholders’ Equity 10679.4 9796.9 9634.0 8610.8 6206.9
10. Deposit 111300.1 93658.6 72152.4 65868.0 59387.3
11. Advances (Gross) 64829.8 61328.6 54010.3 48672.7 39451.4
12. Investment 45749.5 41998.2 22894.7 18591.1 22502.5
13. Guarantee Business 2566.9 1878.6 1806.6 1759.1 1633.5
14. Export Business 14306.0 14192.9 15588.5 12986.7 15096.9
15. Import Business 40336.8 35418.6 33037.6 29614.5 29129.3
16. Foreign Remittance 44301.3 43585.6 37848.7 43200.7 44635.3
17. Fixed Assets 3204.3 2843.4 2762.2 2798.1 1088.4
18. Total Assets 132385.5 123790.6 97417.9 81451.8 71946.0
19. Classified Loan &
Advances
5209.5 5161.9 2821.9 2678.7 2842.0
20. Total Off Balance Sheet
Exposures
18775.9 12005.3 9860.0 9377.6 8560.5
BIS Capital Measures
21. Required Capital 8195.2 7518.7 6865.6 6287.4 3688.2
22. Actual Capital 10203.8 9300.6 9117.4 7912.7 5829.0
Credit Quality
23. Required Provision Loan
& Advances
1357.7 1740.9 1062.4 923.9 889.7
24. Provision Maintained 1419.5 1803.5 1092.0 952.0 910.1
25. Required Prov. against
off Balance Sheet
Exposures
187.8 120.0 98.6 93.8 85.6
26. Provision Maintained 188.0 120.1 111.6 101.7 101.7
Share Information

27. Earnings Per Share
(EPS)
3.60 3.74 5.74 5.40 69.19
28. Market Value Per Share 31.10 38.10 77.80 166.08 145.03
29. Price Earnings Ratio
(Time)
8.64 10.19 13.55 30.76 2.1
30. Book Value Per Share
(NAV)
29.36 29.63 33.51 29.95 25.91
0perating Performance
Ratio
31. Advance Deposit Ratio 0.58:1 0.65:1 0.75:1 0.74:1 0.66:1
32. Total Advance/Class.
Advance (%)
8.04% 8.42% 5.22% 5.50% 7.20%
33. Total Adv. /Class.
Advance (net) %
5.85% 4.32% 3.20% 3.54% 4.90%
34. Income From Equity (%) 12.27% 12.62% 17.13% 18.02% 17.80%
35. Income from Assets (%) 0.99% 1.00% 1.69% 1.91% 1.54%
Table 2.12.6: Financial Highlights of UBL.

3. Theoretical Framework
3.1 Literature Review
Review of literature means reviewing research studies or other relevant preposition in related
area of the study so that all past studies, their conclusions and deficiencies may be known and
further research can be conducted. It is secondary sources and such, and do not report any
new or original experimental work. Its ultimate goal is to bring the researcher up to date with
current literature on the topic and forms the basis or another goal, such as further research
that may be needed in the area.
Review of literature has vital relevance with any research work due to literature review the
possibility of repetition of study can be eliminated and another dimension can be selected for
the study. The literature review helps researcher to remove limitations of existing work or
may assist to extend prevailing study. Several researches have been conducted to analyze the
different aspects of foreign exchange of commercial banks in Bangladesh and abroad. But
there are very few research and literature available on the subject related to financial reforms
and its impact on Bangladeshi banks. The available literature and research are divided into
three major parts according to the area of research i.e. literature related to:
I. Review of basic terms related to Foreign Exchange
II. Review of Literature related to regulation of Foreign Exchange by Foreign Exchange
committee.
III. Review of Literature related to Service Quality providing by Bangladeshi Banks.
The explosive growth of electronic communication and electronic commerce has driven the
foreign exchange industry headlong into reassessment. Best practices that appeared
appropriate a few years ago are now being rethought and reshaped to better fit the electronic
age. In this new environment, access to market making seems easier, and more organizations
are considering initiating activities in the foreign exchange market. Moreover, although
automation has streamlined many transactions and procedures, the foreign exchange market
may be becoming more, rather than less, complex. Given these changes, firms are encouraged
to put in place mechanisms for a continued reassessment of their procedures.
By Naveen Mathur said “In case of hedging in the foreign exchange market, a participant who
is entering a trade with the intention of protecting the existing position from an unexpected
currency move, is said to have created a FOREX HEDGE” [Published in Economic Times
august 12 2013]. Dr. Paul Einzing (2006 L.R. Chowdhury) defines Foreign Exchange only
makes the system or process of converting on national currency into another and transferring
the ownership of money from one country to another [Published in Economic Review]. Mr.
H.E Evit (2010) section of Economic Science which deals with the means and method by
which rights to wealth on one country’s currency using foreign exchange. Edna Carew
(1979)- “A study on Foreign Exchange and Market Control” Foreign exchange controls, that
controls imposed by a government on the purchase/sale of foreign currencies. In terms of

Foreign Exchange Regulations act (1947) as adapted in Bangladesh Bank, Foreign Currency
and includes all deposits credits and balances payable in foreign currency as well as foreign
currency instruments. Foreign Exchange Committee ( 1955), The guidelines presented in this
document merit serious consideration by those who are currently involved in, or seeking to
be involved in, the foreign exchange market. Compliance with these guidelines should give
both firms and individuals’ confidence that they are pursuing sound business practices.
Basic Terms:
Import: Import may be defined as bringing of visible items to the country from abroad
through letter of credit or LCA Form paying foreign Currency to the exporting country.
Export: By export we generally mean selling of visible and invisible goods and services
outside the country against letter of credit, firm contract or Advance payment. Besides, local
supplies against Letter of Credit /contract through banking channel are also deemed as export.
However the local export does not need to be reported to Bangladesh Bank in the schedules.
Remittance: This bank is authorized dealer to deal in foreign exchange business. As an
authorized dealer, a bank must provide some services to the clients regarding foreign
exchange and this department provides these services.
Inward Foreign Remittance: Normally, Inward foreign remittance comprises all incoming
foreign currencies. Remittance issued by the correspondents banks situated in the foreign
countries and thereby drawn on Domestic Bank.
Outward Foreign Remittance: Remittances issued by the domestic bank to foreign
correspondents to fulfill their customers’ needs are considered to be the outward foreign
remittances.
Documentary Credit: In simple term, a documentary credit is a conditional Bank
undertaking of payment. Expressed more fully, it is a written undertaking by a Bank (issuing
Bank) given to seller (beneficiary) at the request, and in accordance with the instructions, of
the buyer (applicant) to effect payment (that is, by making a payment, or accepting or
negotiating bill of exchange) up to a stated sum of money, with in a prescribe time limit and
against stipulated documents.
Bill of Lading: A bill of lading is a document that is usually stipulated in a credit when the
goods are dispatched by sea. It is an evidence of contract of carriage, is a receipt for the goods,
and is a document of title to the goods. It also constituted a document that is, or may be,
needed to support an insurance claim.
Commercial Invoice: A commercial invoice is the accounting document by which the seller
charges the goods to the buyer.
Letter of Credit: L/C is a letter of the issuing Bank to the beneficiary that undertakes to make
payment under some agreed conditions. L/C is also an undertaking of the issuing Bank to the

beneficiary to make payment or to accept bill of exchange.
Regulations by Foreign Exchange Committee:
General best practices for all trading staff:
(a) Always use clear market terminology.
(b) Be aware of confidentiality requirements.
(c) Be responsible in quoting prices.
Resolution:
Disputes, however, are inevitable, and management should establish clear and policies and
procedures for resolution at the senior management level with a transparent audit trail. For
example, in many markets difference checks are exchanged. Informal dispute resolution
practices that sometimes develop in the market can be inconsistent with sound business
practices. For example, the use of points is not an appropriate means of trade dispute
resolution, and for some counterparties in some jurisdictions the use of points may be contrary
to regulatory or supervisory guidance.
Unintentional trades:
In an electronic brokering environment, unintentional trades may take place. Management of
all trading parties should take steps to reduce the likelihood of unintentional trades. This can
be accomplished when management assumes a key role in training new employees to deal
with a voice broker or an electronic system.
Know your customer:
The concept know your customer is essential to the basic operation of any financial
institution. By fully absorbing and complying with their institutions know your-customer
guidelines, staff protect their institution from liability, including legal, criminal, and
reputation risk.
Be on the alert for money laundering:
Management needs to be aware of the risks presented to an institution by money laundering.
All applicable money-laundering laws, regulations, and industry guidelines must be strictly
followed. Internal controls, including account openings, documentation procedures, and
management information/monitoring systems, must be adequate to detect suspicious activity.
Any irregular or suspicious activity needs to be communicated to management in a timely
manner.
Avoiding questionable practices:
Traders are often presented with opportunities to accelerate a gain or postpone a loss. Such
opportunities may be particularly attractive when staff are dealing in less liquid times,
products, or markets. But if the action taken is ethically questionable, it may hurt the

reputation of both the trader and his or her institution and may also incur liability.
Risk Management:
The primary components of sound risk management include:
a comprehensive risk measurement strategy for the entire organization
detailed internal policies on risk taking
strong information systems for managing and reporting risks
a clear indication of the individuals or groups responsible for assessing and managing
risk within individual departments.
3.2 Foreign Exchange
Foreign exchange is the rate of exchange in the both country's currency. In another, Foreign
Exchange is a process of converting one nation’s currency into another and transferring
money from one country to other countries.
The term “Foreign Exchange” has three principal meanings:
Firstly, the term ‘Foreign Exchange’ refers to the currencies of the other countries in terms of
any single one currency. Bangladeshi taka, dollar, pound sterling etc. are foreign currencies
and as such foreign exchange.
Secondly, the term also commonly refers to some instruments used in international trade, such
as bill of exchange, drafts, travelers’ cheque and other means of international remittance.
Thirdly, the term ‘Foreign Exchange’ is also quite often referred to the balance in foreign
currencies held by a country.
3.3 Principles of Foreign Exchange:
The following principles are involved in Foreign Exchange-
Figure 3.3 Principles of Foreign Exchange.
Currency
Monetary UnitInstrument

3.4 Functions of Foreign Exchange
The Bank acts as a media for the system of foreign exchange policy. For this reason, the
employee who is related with the Bank to foreign exchange, specially foreign business should
have knowledge of these following functions :-
Rate of exchange.
How the rate of exchange works.
Forward and spot rate.
Methods of quoting exchange rate.
Premium and discount.
Risk of exchange rate.
Causes of exchange rate.
Exchange control.
Convertibility.
Exchange position.
Intervention money.
Foreign exchange transaction.
Export and import letter of credit.
Non-commercial letter of trade.
Financing of foreign trade.
Natures and functions of foreign exchange market.
Rules and Regulations used in foreign trade.
Exchange Arithmetic.
3.5 Position of UBL in Foreign Exchange Business
Foreign Exchange business is totally controlled by the Central Bank of Bangladesh
(Bangladesh Bank). Central Bank permits some specific branches to perform the foreign
trade. Those who have the authority to operate foreign trade business are known as AD
branch. UBL is an AD Bank. UBL operates foreign exchange trade through its branches. To
handle foreign exchange business effectively and efficiently, the Bank has developed a wide
network of correspondents throughout the world. The Bank has more than 600 foreign
correspondents worldwide. UBL is equipped with all modern technologies & provides
following international Banking services:
 Plays a vital role in import, export and other foreign currency of the country through
more than 600 foreign correspondents worldwide.
 Renders fastest services to the exporter and importer through its SWIFT service.
 Offers competitive price for importers and exporters.
 Provides support to the exporter and importer by extending working capital, pre-
shipment, post shipment facilities.
 Uploads its commitment in international payment.

UBL has got its independent treasury and dealing room equipped with Reuters Dealings
System and renders following facilities:
 Providing effective services to the clients.
 Buying and selling of daily exchange rate.
 Forwarding covers at competitive price.
 Dealing foreign currency with central Bank, commercial Bank and other potential
clients.
 Buying and selling third currency with all leading Banks worldwide.
 Covering exchange fluctuation risk by providing competitive premium.
3.6 Foreign Exchange Transactions in UBL
The transactions of UBL in foreign exchange involve outward and inward remittance of
foreign exchange from one country to another. UBL makes sales and purchases of equivalent
foreign currencies on spot or forward basis. The sale involves exchange of foreign currency
for home currency. The purchase involves exchange of home currency for foreign currency.
The conversion of foreign currency into home currency takes place at an agreed rate of
exchange which the Banker quotes, one for selling and another for buying, each one
separately for spot transactions and forward transactions. There are three kinds of foreign
exchange transaction:
Types Activities
Imports 1) Opening of letter of credit.
2) Advance bills.
3) Bills for collection.
4) Import loans and guarantees.
Exports 1) Pre-shipment advances.
2) Purchase of foreign bills.
3) Negotiations of foreign bills.
4) Export guarantees.
5) Advising/confirming letter of credit.
6) Advance for deferred payments of
exports.
7) Advance against bills for collection.
Remittances 1) Issue and enhancement of traveler’s
Cheques.
2) Issue of F.D.D, O.D, E.F.T, P.O etc.
3) Payment of F.D.D, P.O etc.
4) Sale and enhancement of foreign
currency notes.
5) Non-resident accounts.

3.7 Discussion of Some Documents mostly used in Export/ Import
In Foreign Exchange Activities Bank mostly provides export and import facilities. For
performing Foreign Exchange Activities in a bank we require certain documents. Documents
used in exports and imports are given bellow:
3.7.1 Letter of Credit (L/C)
A letter of credit is a definite undertaking of the issuing Bank to make payment for the import
on behalf of the importer. In other words, L/C is a letter of the issuing Bank to the beneficiary
that undertakes to make payment under some agreed conditions. L/C is an undertaking of the
issuing Bank to the beneficiary to make payment or to accept bill of exchange.
Forms of L/C:
 Revocable L/C: If any letter of credit can be amended or changed of any clause or
canceled by consent of the exporter and importer is known as revocable letter of credit.
The terms and conditions of L/C can be changed at any time without the consent of or
notice of the beneficiary.
 Irrevocable L/C: If any letter of credit cannot be changed or amended without the
consent of the importer and exporter is known as irrevocable letter of credit. The terms
and conditions of L/C cannot be changed. This kind of L/C exists in Bangladesh.
Types of L/C:
Letters of Credit are classified into various types according to the method of settlement
employed. All credits must clearly indicate in major categories.
Sight payment credit
Deferred payment credit
Acceptance credit
Negotiation credit
Red clause credit
Revolving credit
Stand-by credit
Transferable credit
Back to back credit

Parties of L/C:
Different Parties Details
Issued Bank It is the Bank which opens and issues a L/C
on behalf of the importer.
Confirming Bank It is the Bank, which adds its confirmation
to the credit and it is done at the request of
issuing Bank.
Advising or Notifying Bank This Bank is actually situated in exporter
country. It may also assume the role of
confirming and /or negotiating bank
depending upon the condition of the L/C.
Negotiation Bank It is the Bank which negotiated the bill and
pays the amount to the beneficiary.
Accepting bank Accepting Bank is the Bank on which the
bill will be drawn (as per condition of the
credit) usually it is the issuing Bank.
Reimbursing Bank It is the bank, which would reimburse the
negotiating Bank after getting payment.
Contents of L/C:
Contents Details
Name of the buyer The importer at whose request a letter of
credit is issued is known as the buyer.
Name of the seller The person who is also known as the
beneficiary of the credit.
Trade terms Such as F.O.B and CIF.
Tenor of the draft Maturity period which is normally
dependent upon the requirements of the
buyer.
Expiration date That specifies a latest date when documents
may be presented. In this manner or by
including additionally a latest shipping date,
the buyer may exercise control over the time
of shipment.
Documents required That normally include commercial invoice
consular or customers’ invoice, insurance
policies as certificates, if the source is to be
affected by the beneficiary and original bills
of lading.
General description of the merchandise That briefly and in a general manner duly
describes the merchandise covered by a
letter of credit.

Accounting Procedure in case of L/C Opening:
When the officer thinks fit the application to open a L/C, giving the following entries-creates
the following charges-
Particulars Debit/Credit Charges in Taka
Customer's A/C Debit *********
L/C Margin A/C Credit Not Fixed
Commission A/C on L/C Credit 0.40% of the LC Value
VAT Credit 15% on commission
SWIFT Charge Credit 3000/=
Data max Credit 1000/=
Stamp Credit 300/=
Postage Credit 300/=
DHL/Courier Credit 1500/=
LC application form charge Credit 500/=
IMP Issue Charge Credit 300/=
3.7.2 Bill of Exchange
The bill of exchange is that particular instrument which is mostly used in both internal and
international trade. The payment for the goods is received by the seller through the medium
of a bill of exchange drawn on the buyer for the amount depending on the contract. There are
five main parties involved in a bill of exchange. They are:
Drawer
Drawee
Payee
Endorser
Endorsee

3.7.3 Bill of Lading
A bill of lading is a document that is usually stipulated in a credit when the goods are
dispatched by sea. It is an evidence of contract of carriage, is a receipt for the goods, and is a
document of title to the goods. The details on the bill of lading should include:
A description of the goods in general terms not inconsistent with in the credit.
Identify marks and numbers, if any.
The name of the carrying vessel.
Evidence that the goods have been loaded on board.
The ports of shipment and discharge.
The names of shipper, consignee and address of the notifying party.
Whether freight has been paid or is payable at destination.
The number of original bills of lading issued.
The date of issuance a bill of lading specifically stating that goods are loaded for
ultimate destination specifically mentioned in the credit.
3.7.4 Airway Bill / Truck receipt
When goods to be transported are small in bulk or those are required speedy delivery or those
are perishable in nature or the deal is in between the neighboring countries then mode of
transports other than shipping may be resorted for the carriage of the goods. Airways bill /
Truck receipt takes place depending on the nature of the carrier.
3.7.5 Commercial Invoice
A commercial invoice is the accounting document by which the seller charges the goods to
the buyer. A commercial invoice normally includes the following information:
Date.
Name and address of the buyer and seller.
Order of contract number, quantity and description of the goods, unit price and the
total price.
Weight of the goods, number of the package, shipping marks and numbers.
Terms of delivery and payment.
Shipment details.
3.7.6 Insurance Certificate
The insurance certificates’ document must be-
Specified in the credit.
An evidence for covering the risks specified in the credit.
Consistent with the other documents in its identification of the voyage and description
of the goods.

A document issued and/or signed by an insurance company or its agent, or by
underwriters.
Dated on or before the date of the shipment as evidenced by the shipping documents.
For an amount at least equal to the CIF value of the goods and in the currency of
credit.
3.7.7 Certificate of Origin
This is a certificate issued by a recognized authority in exporting country certifying the
country of origin of the goods. It is usually by the Chambers of Commerce. Sometimes, it is
certified by local consul or Trade Representative of the importing country as per terms of the
credit.
3.7.8 Inspection Certificate
This is usually issued by an independent inspection company located in the exporting country
certifying or describing the quality, specification or other aspects of the goods, as called for
the contract and the L/C. The inspection company is usually nominated by the buyer who also
indicates the types of inspection he wishes the company to undertake.
3.7.9 Packing List
The exporter must prepare an accurate packing list showing item by item, the contents of the
consignment to enable the receiver of the shipment to check the contents of the goods, number
and marks of the package, quality, per package net weight, gross weight, measurement etc.
3.7.10 Weighting and Measurement
Issued by recognized authority (like Chambers of Commerce and Industry) in exporting
country certifying correct weighting and measurement of the goods those are to be exported.
3.7.11 Bill of Entry
A bill of entry is a document which contains the particulars of the imported goods as well as
the amount of customs duty payable. The exporter submits the above papers/documents to
the Negotiating Bank. The negotiating Bank after receiving the above documents / papers,
then scrutinizes the documents. The negotiating Bank sends the original shipping documents
to the L/C opening Bank and keeping the second copy with itself.
3.8 Import Segment
Import is foreign goods and services purchased by consumers, firms & government in
Bangladesh. An importer must have Import Registration Certificate (IRC) given by Chief
Controller of Import and Export (CCI & E) to import anything from other country. To obtain
IRC the following certificates are required-
 Trade License  Registration partnership deed (if
any)

 Income tax clearance certificate  Memorandum and Article of
Association
 Nationality certificate  Certificate of Incorporation (if any)
 Bank solvency certificate  Rent receipt of the business premises
 Asset certificate
3.8.1 Import Procedure
To import, a customer of Uttara Bank Ltd. requires-
 Bank account  Membership certificate
 Import registration certificate  L/C application form duly attested
 Taxpaying identification number  One set of form
 Proforma invoice/indent  Insurance cover note with money
receipt
3.8.2 Import Appliance
To import, a person should be competent to be an importer. According to Import and Export
control Act 1950, the Officer of Chief Controller of Import and Export provides the
registration (IRC) to the importer. After obtaining this, person has to secure a Letter of Credit
Authorization (LCA) from Bangladesh Bank. And then the person becomes a qualified
importer.
3.8.3 Importer’s L/C Margin Requirement
To have an import L/C limit, an importer submits an application to the Bank furnishing the
following information-
 Full particulars of Bank account  Goods to be imported
 Nature of business  Official security
 Required amount of limit  Repayment schedule
 Payment terms and conditions
3.8.4 Opening of Letter of Credit by Uttara Bank
The applicant (importer) issues a L/C in favour of the beneficiary (exporter) by a Bank. The
Bank, which opens or issues L/C, is called L/C Opening Bank. Opening of letter of credit
means, at the request of issuing Bank, on receipt of the importer’s L/C application
supported by the firm contract (indent/Proforma invoice) and insurance cover note, the
Bank scrutinizes the same thoroughly and fix-up a margin on the basis of Bank customer
relationship.
Procedure of Opening L/C
The importer after receiving the Proforma invoice from the exporter, by applying for the issue

of a documentary credit, the importer request his Bank to make a promise of payment to the
supplier. Following documents should be submitted before opening of the L/C:
The above documents / papers must be completed duly signed and filled in by the party
according to the instruction of the Banker.
The Points are to be checked by the Issuing Bank before Opening a L/C
L/C application properly stamped, signature verified and margin approved and
properly retained.
Indent/proforma invoice signed by the importer and indenter/supplier.
Ensuring that the relevant particulars of L/C application are corresponding with those
stipulated in indenter/proforma invoices.
Validity of L/C entitlement of goods, amount etc. conforms to the L/C application.
Conversion and rate of exchange currently applied.
Charges like commission, postage, and telex charge, if any recovered.
Insurance cover note stipulates all information accordingly.
Incorporation of instruction for negotiating Bank as per Bank’s existing arrangement.
Reimbursement instructions for reimbursing Bank.
If foreign Bank confirmation is required, necessary permission should be obtained and
accordingly advising Bank is advised as per Bank’s existing arrangement.
If added information is required on account of the applicant charges should be
submitted by
Importer
Tax
Identification
Number (TIN)
Valid Trade
License
Import
Registration
Certificate
(IRC)
Submitted by
Bank
Application and
Agreement
Form
IMP Form
Necessary
Charge
Documents for
Documentation

recovered from the applicant.
Mentioning rate of interest clearly in the letter of credit in case of issuance of L/C.
Liability of Issuing Bank
As per article 9(a) of UCPDC 600, “An irrevocable credit constitutes a definite undertaking
of the issuing Bank, provided that the stipulated documents comply with the terms and
conditions of the credit.”
Advising of Letter of Credit
Advising L/C means forwarding of a documentary letter of credit which is received from the
issuing Bank to the beneficiary (exporter). Before advising a L/C, the advising Bank must see
the following-
Signature of issuing Bank officials on the L/C and verified with the specimen
signature book of the said Bank when L/C is received by airmail.
If the export L/C is intended to be an operative cable L/C, test code on the L/C
invariably be agreed and authenticated by two authorized officers.
L/C scrutinized thoroughly complying with the requisites of concerned UCPDC
provisions.
Entry made in the L/C advising register.
L/C advised to the beneficiary (exporter) promptly and advising charges recovered.
Advising Bank’s Liability
Advising Bank’s liability is fixed up in Uniform Customs and Practice for Documentary
Credits (UCPDC):-
I. Article 7(a): A credit may be advised to a beneficiary through another Bank (the “advising
Bank”) without engagement on the part of the advising Bank, but that Bank, if it elects to
advise the credit, shall take reasonable care to check the apparent authenticity of the credit
which it advises. If the Bank elects not to advise the credit, it must so inform the issuing Bank
without delay.
II. Article 7(b): If the advising Bank cannot establish such apparent authenticity it must
inform, without delay, the Bank from which the instructions have been received that it has
been unable to establish the authenticity of the credit and if it elects nonetheless to advise the
credit it must inform the beneficiary that it has not been able to establish the authenticity of
the credit.
Adding Confirmation
Adding confirmation is done by the confirming Bank. Confirming Bank is a Bank which adds
its confirmation to the credit and it is done at the request of the issuing Bank. The confirming
Bank may or may not be the advising Bank.

 Issue L/C and request to add
confirmation
 Availability of credit facilities
 Review the L/C terms  Line allocation from the business
and ownership units in the
importer’s country
 Provide reimbursement  Confirm and advise L/C
 Drafts to be drawn on L/C opening
Bank
Amendments of Letter of Credit
After issuance and advising of a L/C, it may be felt necessary to delete, add or alter some of
the clauses of the credit. All these modifications are communicated to the beneficiary through
the same advising Bank of the credit. Such modifications to a credit are termed as amendment
to a letter of credit.
The Tasks are to be done by the Issuing Bank before Advising Amendments
Written application from the applicant of the credit duly signed and verified by the
bank is to be obtained.
Application for amendment (in case of increase of value) supported by revised
indent/proforma invoice evidencing consent of the beneficiary is to be obtained.
In case of extension of shipment period, it should ensure that relative LCA
invalid/invalidated/increased up to the period of proposed extension.
Amendments on increase of credit amount and extension of shipment period both the
cases, amendment of insurance cover note also to be submitted.
Proper recording and filling of amendment is to be maintained.
Amendment charges (if on account of applicant) will be recovered and necessary
voucher is to be passed.
The Clauses of L/C that are generally amended
Increase/Decre
ase Value of
L/C
Increase/Decre
ase of Quality
of Goods
Extension of
shipment/Nego
tiated period
Terms of
Delivery i.e.
FOR, CFR,
CIF etc.
Mode of
Shipment
Inspection
Clause
Name and
Address of the
supplier
Name of the
Reimbursing
Bank
Name of the
Shipping Line

Settlement of Letter of Credit
Settlement means fulfilment of issuing Bank in regard to affecting payment subject to
satisfying the credit terms. Settlement may be done under three separate arrangements as
stipulated in the credit.
Settlement by Payment
Here the seller presents the documents to the nominated Bank and the Bank scrutinizes the
documents. If satisfied, the nominated Bank makes payment to the beneficiary and in case
this Bank is other than the issuing Bank, then sends the documents to the issuing Bank and
claim reimbursement as per arrangement.
Settlement by Acceptance
Under this arrangement, the seller submits the documents evidencing the shipment to the
accepting bank accompanied by draft drawn on the bank at specified tenor. After being
satisfied with the documents, the bank accepts documents and draft and if it is a bank other
than issuing Bank, then sends the documents to the issuing bank stating it has accepted the
draft and maturity of the reimbursement that will be obtained in the pre-agreed manner.
Settlement by Negotiation
This settlement procedure starts with the submission of documents by the seller to the
negotiating Bank. In a freely negotiable credit any bank can negotiate documents and if
negotiation is restricted by the issuing bank, only nominated bank can negotiate the
documents. After scrutinizing that the documents meet the credit requirement, the Bank may
negotiate the documents and give value to the beneficiary. The negotiating Bank then sends
the documents to the issuing Bank. As usual, reimbursement will be obtained in the pre-
agreed manner. After realizing telex charge, service charge, interest and shipping documents
is then stamped with PAD number and entered in the PAD register. Bank then informs the
customer by calling on the Bank’s counter and requests for retirement of the shipping
documents. After passing the necessary vouchers, endorsements are made on the back of the
bill of exchange as “receipt payment” and the bill of lading is endorsed to the effect “please
deliver to the order of M/S…” by two authorized signatures. Then documents are delivered
to the importer.
Payment Procedure of the Import Documents
This is the most sensitive task of the Import Department. The officials have to be very much
careful while making payment. This tasks constitutes the following –
Date of
Payment
Preparing Sale
Memo
Requisition of
the Foreign
Currency
Transmission
of Telex

3.9 Export Segment
Practically by the term export we mean carrying out of anything from one country to another.
From the Banker’s point of view- export means sending of visible things outside the country
for sale. Export trade plays a vital role in the development process of an economy. Although
export trade is always encouraged, anybody cannot export anything to anyplace. Like
importer, exporters are also required to get them registered before entering into export trade.
Export Registration Certificate (ERC) given by CCI & E is required for this purpose. The
required documents to be obtained ERC are almost same as IRC. When Uttara Bank
(authorized dealer) receives a L/C (cable or original) it ascertains the correctness of the test
number and the authorized signature. Then the Bank sends the original copy of the L/C to the
beneficiary. The exporter presents the relative documents to the negotiation Bank after the
shipment of the goods. The L/C issuing Bank undertakes to honour the obligations only if the
beneficiary fulfils the conditions stipulated in the L/C. Even a slight deviation of the
documents from these specified conditions in the L/C may give an excuse to the negotiating
Bank. So the negotiating Bank must be careful, promote, systematic and bias-free while
scrutinizing the tender documents after careful examination of the documents. The Banker
has to list out the discrepancies which may be classified as major or minor, irremovable or
removable. The removable discrepancies can be corrected by the tendered or future losses,
which may arise due to non-interpretation of proceeds. The following types of discrepancies
may be noted while the negotiating Bank examines the documents:
 Expired L/C  Insurance cover obtained after the
Bill of lading or Air bill date
 Late shipment  Enough number of copies not
submitted as required by L/C
 Amount drawn in excess of the L/C  Negotiation under L/C restricted
 Bill of Exchange not properly drawn  Packing list and certificate of origin
not as per L/C
 Bill of Exchange not properly drawn  Documents not properly endorsed
 Descriptions of the goods varied  Ineffective full shipment and part
shipment prohibited
 Bill of lading classified  Gross weight and net weight shown
in different documents varied
 Insurance cover not as per terms of
L/C
 Some documents required by L/C
not submitted and documents
inadequately stamped
3.9.1 Registration of Exporters
For obtaining ERC indenting, Bangladeshi exporters are required to apply to the Controller/
Joint Controller/Deputy Controller/ Assistant Controller of Import & Export in the prescribed
from along with following documents:

3.9.2 Securing the Order
After getting the ERC the exporter may proceed to secure the export order. He can do this by
contacting with the buyers directly or through agent. In this purpose exporter can get help
from:
3.9.3 Signing the Contract
After getting contract for sale, the exporter should ask the buyer for opening letter of credit
clearly stating terms and conditions of export and payment. The followings are the main
points to be looked into for receiving/collecting export proceeds by means of documentary
credit:
The terms of the L/C are in conformity with those of the contract.
The L/C is an irrevocable one, preferable confirmed by the advising Bank.
The L/C allows sufficient time for shipment and negotiation; Terms and conditions should be
stated in contract clearly in case of other modes of payment:
Nationality
and Assets
Certificate
Bank
Certificate
Memorandum
and Articles of
Association
Trade License
etc.
Liaison Office
Buyer’s Local
Agent
Export
Promotion
Organization
Chamber of
Commerce
(Local &
Foreign)
Bangladesh
Mission Abroad
Trade Fair etc.

Cash in advance
Open an account
Collection basis (documentary / clean); (Here the regulatory framework is URC – 525,
ICC publication)
3.9.4 Procuring the Material
After making the deal and on the L/C opened in his favour, the next step for the exporter is
to set about the task of procuring or manufacturing the contracted merchandise.
3.9.5 Shipment of Goods
After that the export should take the preparation for export arrangement for delivery goods as
per L/C and INCO-terms, prepare and submit shipping documents for payment/negotiation in
due time:
3.9.6 Final Step
After those, exporter submits all these documents along with a letter of indemnity to Uttara
Bank Ltd. for negotiation. An officer scrutinizes all the documents. If the document is a clean
one, Uttara Bank Ltd. purchases the documents on the basis of Banker-Customer relationship.
This is known as Foreign Documentary Bill Purchases (FDBP).
Foreign Documentary Bills for Collection
Uttara Bank Ltd. forwards the documents for collection due to the following reasons:
If the documents have discrepancies.
If the exporter is a new client.
If the Banker is in doubt after passing the above vouchers, an inter branch exchange
trading debit advice is sent for debiting the NOSTRO account. Uttara Bank Ltd. has
EXP Form
ERC (valid)
L/C Copy
Transport
Documents
Shipping
Instruction
Customs
Duty
Certificate
Invoice
Bill of
Exchange
Certificate
of Origin
Inspection
Certificate
Quality
Control
Certificate
G.S.P.
Certificate

NOSTRO account with its reimbursing Bank (American Express Bank in New York).
An FDBC register is maintained, where first entry is given when the documents are
forwarded to the issuing Bank for collection and the second one is done after
realization of the proceeds.
Scrutinizing Export Bill
Scrutinizes the export bill on the following points:
I. General
Late shipment.
Late presentation.
Expired L/C.
Overdrawn L/C.
Partial shipment or shipment beyond L/C terms.
II. Bill of Exchange
Amount of bill has varied with Invoice.
Amount of bill has not drawn on L/C issuing Bank.
Amount of bill has not signed by the beneficiary.
Tenor or B/E is not identical with L/C.
Full set of documents have not submitted.
Invoice has not issued by the beneficiary.
Invoice has not signed by the beneficiary.
Invoice has not made out by the name of the applicant.
Description, price, quantity, sales terms of the goods are not correspond to the credit.
Not marked one fold as original.
Shipping marks have varied with B/L & Packing list.
III. Packing List
Gross weight, net weight & measurement, number of cartoons/packages are varied
with B/L, have not marked one fold as original and have not signed by the beneficiary.
Shipping marks have varied with B/L.
IV. Bill of Lading/ Airway Bill
Full set of bill has not submitted.
B/L has not drawn or endorsed.

“Shipping on Board”, “Freight prepaid” or “Freight collect” etc. notations have not
marked on the B/L.
B/L have not indicated the name and capacity of the party i.e. carrier or master.
Shipping on board notation have not showed name of pre-carriage vessel/intended
vessel.
Shipping on board notation is have not showed port of loading and vessel.
Short form B/L.
Charter party B/L.
Description of goods in B/L have not agreed with that of invoice B/E & P/L.
Alteration in B/L has not authenticated.
Loaded on deck.
B/L bearing clauses or notations have expressly declared defective condition of the
goods and /or the packages.
V. Others:
Non-negotiable documents have not forwarded to buyers.
Inadequate number of invoice, packing list & others have submitted.
Short shipment certificate has not submitted.
Settlement of Local Bill
The settlement of local bill is done in the following ways:
The customer submits the L/C to the Uttara Bank Ltd. along with the documents to
negotiate.
Uttara Bank ltd. officials scrutinize the documents to ensure the conformity with the
terms and conditions.
The documents are then forwarded to the L/C opening Bank.
The L/C issuing Bank gives the acceptance and forwards an acceptance letter.
Payment is given to the customer on either by collection basis or by purchasing the
documents.
Mode of Payment of Export Bills under L/C
The most common methods of payment under a L/C are as follows:

3.10 Back to Back Letter of Credit
It is different from the original credit based on which the Bank undertakes the risk under the
back to back credit. In this case, the Bank’s main surety/security is original credit. The
supplier (beneficiary of the back to back credit) ships goods to the importer or supplies goods
to the exporter and presents documents to the Bank as is specified in the credit. It is intended
that the exporter would substitute his own documents for negotiation under the original credit;
his liability under the back to back credit would be adjusted out of these proceeds. The
exporter L/C is marked lien and no margin is taken. In UBL paper/documents are required to
submit for opening of back to back L/C:
3.10.1 Defective Points or Clauses Appear in the Master L/C
 Issuing Bank is not reputed.
 B/L blank endorse to be endorsed to
buyer or to third party.
 Advising credit by the advising
Bank without authentication.
 No subsequent reimbursing clause.
 Port of destination is absent.  Shipment/presentation period is not
sufficient.
 Inspection clause not mentioned.
 Original document to be sent to buyer
or nominated agent.
Sight Payment
Negotiation credit
Deferred payment credit
Acceptance credit
Test Key Arrangement
Master L/C IRC & ERC
Proforma
Invoice
Insurance
Cover Note

 Nomination of specific shipping
or nomination of specified vessel
by subsequent amendment.
 UCP clause not mentioned.
 L/C is expired in the country of the
issuing Bank.
 Negotiation is restricted.
3.10.2 Payment of Back to Back Letter of Credit
In case back to back as 60-90-120-180 days of maturity period, deferred payment is made.
Payment is given after realizing export proceeds from the L/C issuing Bank. According to the
back to back concept, the seller as the beneficiary of the credit offers it as security to the
advising Bank for the issuance of the second credit. As application for this second credit, the
seller is responsible for reimbursing the Bank for payment made under it, regardless of
whether or not he himself is paid under the first credit. There is, however, no compulsion for
the Bank to issue the second credit, and in fact, many Banks will not do so.
3.11 Remittance Segment
Remittance is the act of transmitting money, bills and others as in satisfaction of a demand,
or in discharge of an obligation. UBL is authorized dealer to deal in foreign exchange
business. As an authorized dealer, a Bank must provide some services to the clients regarding
foreign exchange and this department provides these services. The basic function of this
department are outward and inward remittance of foreign exchange from one country to
another country. In this process of providing this remittance service, it sells and buys foreign
currency. The conversion of one currency into another takes place an agreed rate of exchange
which the Banker quotes, one for buying and another for selling.
3.11.1 Types of Remittance
There are two types of remittance. These are:
1. Inward Remittance.
2. Outward Remittance
Inward Remittance
Inward remittance covers purchase of foreign currency in the form of Demand Draft (DD),
Over Draft (OD) and Bills & Travellers’ Cheque, Export Bill etc. sent from abroad favouring
a beneficiary in Bangladesh. Purchase of foreign exchange is to be reported to Exchange
Control Department of Bangladesh Bank from Letter of Credit (L/C). Mode of Inward
Remittance:
1. Over Draft
2. Bills and Travel’s Cheque
3. Export proceed
Outward Remittance

Outward remittance covers sales of foreign currency by Authorized Dealer (AD) or formal
channel through issuing foreign Electronic Fund Transfer (EFT), Demand Drafts (DD),
Travellers’ Cheque etc. as well as sell of foreign exchange under L/C and against Import Bills
retired. Most outward remittance is approved by the authorized dealer on behalf of
Bangladesh Bank. Mode of Outward Remittance:
Figure: Mode of Outward Remittance.
Outward
Remittance
Demand
Draft
Foreign
Demand
Draft
L/C
Electronic
Fund
Transfer

4. Analysis of Foreign Exchange Activities of Uttara Bank Ltd.
4.1 Analysis of Survey Questionnaires
I also used qualitative and quantitative method which contains some features of Uttara Bank
Ltd., Ramna Branch. But first I did the questionnaires on the “Satisfaction of L/C clients
Toward Uttara Bank Limited, Ramna Branch” by the qualitative method and my findings
will be included as a part of my presented report, which are shown below:
4.1.1 Accurate Service of UBL:
UBL L/C Clients’ Service is Accurate
Particulars No. of Respondent Percent
Strongly Agree 23 57.5%
Agree 10 25%
Neutral 4 10%
Disagree 3 7.5%
Strongly Disagree 0 0%
Total 40 100%
Table 4.1.1: UBL L/C Clients’ Service is Accurate.
Figure 4.1.1: UBL L/C Clients’ Service is Accurate.
Interpretation: Among the 40 respondents when they are asked about the accuracy of the
services of UBL. 57.5% said that UBL L/C client’s service is accurate. 5% respondents were
neutral, while only 7.5% of the L/C clients think that the accuracy level is not so much
satisfactory.
57.5%
25%
10%
7.5%
0%
0%
20%
40%
60%
80%
strongly Agree Agree Neutral Disagree Strongly Disagree
UBL L/C Clients' Service is Accurate
Percentage

4.1.2 Expert Staffs:
The Staffs are Expert about Foreign Exchange Banking System of UBL
Particulars No. of Respondents Percent
Strongly Agree 12 30%
Agree 14 35%
Neutral 7 17.5%
Disagree 5 12.5%
Total 40 100%
Table 4.1.2: The Staffs are Expert about Foreign Exchange Banking System of UBL.
Figure 4.1.2: The Staffs are Expert about Foreign Exchange Banking System of UBL.
Interpretation: Among the 40 respondents when they are asked about knowledge of the
staffs about foreign exchange banking system of UBL, 30% & 35% said that UBL staffs are
expert about foreign exchange banking systems of UBL. Near about 17.5% respondents were
neutral, while only 5% of the L/C clients think that UBL staffs are not quite expert banking
systems of UBL.
30%
35%
17.5%
12.5%
5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
The Staffs are Expert about Foreign Exchange Banking System of
UBL
Percentage

4.1.3 Insurance Facility:
UBL Provides Insurance Facility for L/C Clients
Agree 10 25%
Neutral 7 17.5%
Disagree 2 5%
Strongly Disagree 1 2.5%
Total 40 100%
Table 4.1.3: UBL Provides Insurance Facility for L/C Clients.
Figure 4.1.3: UBL Provides Insurance Facility for L/C Clients.
Interpretation: Among the 40 respondents when they are asked about whether UBL provides
insurance facility for the L/C Clients or not, 50% said that UBL provides insurance facility
for them. 17.5% respondents were neutral, while only 2.5% of the L/C customers think that
UBL sometimes is unable to provide insurance facility for the L/C clients.
50%
25%
17.5%
5%
2.5%
0%
10%
20%
30%
40%
50%
60%
UBL Provides Insurance Facility for L/C Clients
Percentage

4.1.4 Loan Facility:
UBL Provides Loan Facility to Open L/C to their Respected Clients
Particulars Respondent Percent
Agree 10 25%
Neutral 4 10%
Disagree 3 7.5%
Total 40 100%
Table 4.1.4: UBL provides Loan Facility to Open L/C to their Respected Clients.
Figure 4.1.4: UBL Provides Loan Facility to Open L/C to Their Respected Clients.
Interpretation: Among the 40 respondents when they are asked about whether UBL can loan
facility for the L/C clients or not, 47.5% said that UBL provides loan facility for them. 10%
respondents were neutral, while 10% of the L/C customers think that UBL cannot provide
loan facility for the L/C clients when need.
47.5%
25%
10%
7.5%
10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
UBL Provides Loan Facility to Open L/C to their Respected
Clients
Percentage

4.1.5 Helpful Staffs:
The Staffs of UBL are Very Helpful to their Clients
Agree 8 20%
Neutral 6 15%
Disagree 2 5%
Total 40 100%
Table 4.1.5: The Staffs of UBL are Very Helpful to their Clients.
Figure 4.1.5: The Staffs of UBL are Very Helpful to their Clients.
Interpretation: Among the 40 respondents when they are asked about helpfulness of UBL
staffs, majority of them which is 55% said that UBL staffs are very helpful. 15% respondents
were neutral about the helpfulness of UBL staffs, while only 5% of the L/C clients think that
UBL staffs are not enough helpful.
55%
20%
15%
5% 5%
0%
10%
20%
30%
40%
50%
60%
The Staffs of UBL are Very Helpful to their Clients
Percentage

4.1.6 Waiting Time:
Clients have to Wait Less Time to Get the Services
Agree 7 17.5%
Neutral 5 12.5%
Disagree 3 7.5%
Total 40 100%
Table 4.1.6: Clients have to Wait Less Time to Get the Services.
Figure 4.1.6: Clients have to Wait Less Time to Get the Services.
Interpretation: Among the 40 respondents, when they are asked that whether the L/C clients
of UBL have to wait fewer times to get the customer service, 57.5% agreed with that. 12.5%
respondents were neutral, while only 5% of the L/C clients thinks that at UBL L/C customers
have to wait longer times to get the services.
57.5%
17.5%
12.5%
7.5
5%
0%
10%
20%
30%
40%
50%
60%
70%
Client have to Wait Less Time to Get the Services
Percentage

4.1.7 Margin Policy of UBL:
The Margin Policy of UBL is Completely Satisfactory
Agree 16 40%
Neutral 5 12.5%
Disagree 2 5%
Strongly Disagree 3 7.5%
Total 40 100%
Table 4.1.7: The Margin Policy of UBL is Completely Satisfactory.
Figure 4.1.7: The Margin Policy of UBL is Completely Satisfactory.
Interpretation: Among the 40 respondents when they are asked about margin policy of UBL,
35% said that the policy is satisfactory. 12.5% respondents were neutral, while only 7.5% of
the L/C clients think that UBL’s margin policy does not satisfy them and they think policy
should be changed to a reasonable one.
35%
40%
12.5%
5%
7.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
The Margin Policy of UBL is Completely Satisfactory
Percentage

4.1.8 Interest Rates Charged:
The Interest Rate Charged against Loans by UBL is High or Low
Particulars Respondent Percent
High 16 40%
Low 24 60%
Total 40 100%
Table 4.1.8: The Interest Rate charged Against Loans by UBL is high or Low.
Figure 4.1.8: The Interest Rate Charged against Loans by UBL is high or Low.
Interpretation: When L/C customers are asked about the interest rate against loans of UBL,
60% rated it as low, 40% rated it as high think that the interest rate against loans is high.
40%
60%
0%
10%
20%
30%
40%
50%
60%
70%
High Low
The Interest Rate Charged against Loans by UBL is High or Low
Percentage

4.1.9 Service Charges:
The Service Charges for Operating L/C in UBL are High or Low
High 15 37.5%
Low 25 62.5%
Total 40 100%
Table 4.1.9: The Service Charges for Operating L/C in UBL are High or Low.
Figure 4.1.9: The Service Charges for Operating L/C in UBL are High or Low.
Interpretation: When L/C customers are asked about the service charges of UBL, 62.5%
rated it as low. Only 37.5% respondents think that the service charge of UBL is not low.
37.5%
62.5%
0%
10%
20%
30%
40%
50%
60%
70%
High Low
The Service Charges for Operating L/C in UBL are High or Low.
Percentage

4.1.10 The Harmonization between Foreign Exchange Dept. and Loan dept.:
The Harmonization between Foreign Exchange Dept. and Loan Dept. is High or
Low
High 23 57.5%
Low 17 42.5%
Total 40 100%
Table 4.1.10: The Harmonization between Foreign Exchange Dept. and Loan Dept. is
High or Low.
Figure 4.1.10: The harmonization between Foreign Exchange Dept. and Loan Dept. is
High or Low.
Interpretation: When L/C Clients were asked for their opinion about the harmonization
between foreign exchange dept. and the loan dept. of UBL, 57.5% rated it as high. While
42.5% think that there is a lack of harmonization between two departments of UBL.
42.5%
57.5%
0%
10%
20%
30%
40%
50%
60%
70%
High Low
The Harmonization between Foreign Exchange Dept. and Loan
Dept. is High or Low
Percentage

By the above survey it is seen that there is a higher percentage for; UBL L/C clients’ service
is accurate, The staffs are expert about Foreign Exchange Banking System of UBL, UBL
provides insurance facility for L/C clients, UBL provides loan facility to open L/C to their
respected clients, The staffs of UBL are very helpful to their clients, Clients have to wait less
time to get the Services, The margin policy of UBL is completely satisfactory, The interest
rate charged against loans by UBL is low, The service charges for operating L/C in UBL is
low, The harmonization between foreign exchange dept. and loan dept. of UBL is high.
In my survey, I have worked with 40 respondents, those 40 respondents had given the answer
of 10 right survey questions. Among 40 respondents most of them had given their opinion as
both strongly agree and agree on those 10 right survey questions.
By getting the answers from the respondents, it is understood that the respondents open L/C
in UBL because they get good services form UBL. For this impact, the satisfaction of L/C
clients toward UBL, Ramna Branch is increasing gradually. As a result, day by day the L/C
opening is increasing. On the other hand, some clients were not satisfied with the services of
UBL in some cases. They said some services have been updated & changed but some should
be changed according to customer demand. They also expect if UBL continues their
improvement with thinking about L/C customer services, it will be able to keep good
contribution in Banking Sector of Bangladesh as a historical preference.
4.2 Analysis of the Foreign Affairs
During my internship period, I tried to observe banking foreign exchange activities of the
UBL, Ramna Branch. The Uttara Bank Ltd. is performing contribution for caring society to
be more effective and to achieve their corporate goal.
In the report my selected topic is “Foreign Exchange Activities of Uttara Bank Limited” and
I have tried to analyze this part by graphical method with the help of Statement of Foreign
Affairs for the Month of July, August, September, October, November (2014) of Uttara Bank
Ltd, Ramna Branch & Annual Statements of previous years of UBL.

4.2.1 Import Trade: (For Last Five Months)
Particulars No of L/C Amount (Figure in
Thousands)
July 112 302784
August 119 325513
September 135 365162
October 147 402520
November 162 432013
Table 4.2.1: Table 4.2.1: Import Trade (Source: UBL, Ramna Branch).
Figure 4.2.1: Import Trade (July-November) 2014.
Interpretation: Observing the above figure, it can be said, during the time period among the
months July to November; the Import dealings of the Uttara Bank Ltd, Ramna Branch which
indicates a good growth of the branch & income is increasing day by day because import
business is growing. In the month of July it was TK.302784 (thousand) but in November it
shows TK.432012 already increased by TK.129229 (thousand) than July.
302784
325513
365162
402520
432013
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
July August September October November
Import Trade
Month

4.2.2 Import Trade: (For Last Five Years)
(Amount in Thousand)
Particulars 2009 2010 2011 2012 2013
Import
Business
100500 113743 121650 328820 377683
Table 4.2.2: Import Trade (Source: Annual report 2009-2013).
Figure 4.2.2: Import Trade (2009-2013).
Interpretation: In the graph shows that the amount of Import Business of Uttara Bank Ltd
decreased by TK.100500 in the year of 2009 rather than other years but it increased by
TK.377683 (thousand) in 2013. The above graph we can see that the amount of Import
Business (2013) is the highest than the other years which is a good sign for the banking
income growth.
100500
113743 121650
328820
377683
0
50000
100000
150000
200000
250000
300000
350000
400000
2009 2010 2011 2012 2013
Import Trade
Year

4.2.3 Import Business Growth: (For Last Four Years)
Years Growth (%) Target Target
Achieved (%)
No of LC/
Import Doc.
Opened
2010 13.17% 300000 37.91% 40
2011 6.95% 500000 24.33% 50
2012 170.30% 1000000 65.76% 115
2013 14.86% 1000000 94.42% 94
Table 4.2.3: Import Business Growth (Source: UBL, Ramna Branch).
Figure 4.2.3: Import Business Growth (2010-2013).
Interpretation: From the above graph, we can see that, in 2010 the growth of import was
13.17% and the achievement of target was 37.91%. In 2011; the growth of import was 6.95%
which is very much less comparing to 2010. For which, there is a fall in the growth. But in
2012, suddenly the growth improved was doubled. In 2012, the import rate of growth was
170.30%, for which the target achieved was 65.76%, and also the number of L/C opened
was more compared to other years. In 2013, the growth rate was 14.86% and the target was
give 1000000, in which the target achieved was 94.42%, which gives a good impact to UBL
for import business. In 2011 to 2012, the growth is increased is much more than in 2012 to
2013. At last it can be said, the import business in giving a good signal to UBL.
37.91%
24.33%
65.76%
94.42%
13.17%
6.95%
170.30%
14.86%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
160.00%
180.00%
2010 2011 2012 2013
Import Business Growth
Target Achieved Growth

4.2.4 Export Trade: (For Last Five Months)
Particulars No. of EXP Amount (Figure in
Thousands)
July 18 19780
August 20 20937
September 22 21677
October 24 23733
November 28 26504
Table 4.2.4: Export Trade (Source: UBL, Ramna Branch).
Figure 4.2.4: Export Trade (July-November) 2014.
Interpretation: After observing the figure drawn above, I am able to say that, during the
time period among the months July to November 2014; the Export Trade of the Uttara Bank
Ltd, Ramna Branch increases in November by TK.26504 (thousand) and highest amount
than other two month which is a good sign. Because in July it was TK.19780 (thousand)
which is less by TK.245724 (thousand) than November. I hope that Ramna Branch will be
able to do better Export business in near future.
19780
20937 21677
23733
26504
0
5000
10000
15000
20000
25000
30000
Export Trade
Month

4.2.5 Export Trade: (For Last Five Years)
(Amount in thousand)
Particulars 2009 2010 2011 2012 2013
Export
Business
30876 49867 57985 131687 142676
Table 4.2.5: Export Trade (Source: Annual report 2009-2013).
Figure 4.2.5: Export Trade (2009-2013).
Interpretation: In the graph shows that the amount of Export Business of Uttara Bank Ltd
decreased in the year of 2009 by TK.30876 (thousand) rather than other years but it
increased in 2013 by TK.142676. The above graph we can see that the amount of Export
Business (2013) is the highest by TK.1, 11,800 (thousand) than 2009. I hope that the Uttara
Bank can improve their export business in near future by providing better services.
30876
49867
57985
131687
142676
0
20000
40000
60000
80000
100000
120000
140000
160000
2009 2010 2011 2012 2013
Export Trade
Year

4.2.6 Export Business Growth: (For Last Four Years)
Items Standard
Target
(thousand)
Actual
Achieved(thousand)
Growth
(%)
Target
Achieved
(%)
No. of
Bill
Handling
2010 300000 30652 61.51% 10.22% 32
2011 300000 40789 16.28% 13.6% 40
2012 400000 42852 127.00% 10.713% 44
2013 400000 26504 8.34% 6.63% 28
Table 4.2.6: Export Business Growth (Source: UBL, Ramna Branch).
Figure 4.2.6: Export Business Growth (2010-2013).
Interpretation: From the above graph, we can see that, in 2010 the growth of export was
61.51% and the achievement of target was 10.22%. In 2011, the growth of export was
16.28% which is very much less comparing to 2010. For which, there is a fall in the growth.
But in 2012, suddenly the growth improvement was doubled. In 2012, the import rate of
growth was 127%, for which the target achieved was 10.71%, and also the number of L/C
opened was more compared to other years. In 2013, the growth rate was 8.34% and the
target was give 400000, in which the target achieved was 6.63%, which gives a good impact
to UBL for Export business. In 2011 to 2012, the growth is much more than in 2012 to 2013.
At last it can be said, the Export business is giving a good sign to UBL.
10.22% 13.60% 10.71%
6.63%
61.51%
16.28%
127.00%
8.34%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
2010 2011 2012 2013
Export Business Growth
Target Achieved Growth

4.2.7 Total Foreign Remittance Affairs: (For Last Five Years)
(Amount in Lac)
Particulars 2010 2011 2012 2013 2014
Remittance 150 200 244 299 333
Table 4.2.7: Total Foreign Remittance Affairs (Source: UBL, Ramna Branch).
Figure 4.2.7: Total Foreign Remittance Affairs (2010-2014).
Interpretation: Here we can see that there has a good increasing other than the previous
years. The volume of foreign remittance in the year 2014, TK.333 lac and it has been
increased at TK.34 lac than 2013& at TK. 184 lac than 2010.
150
200
244
299
333
0
0.5
1
1.5
2
2.5
3
3.5
4
2010 2011 2012 2013 2014
Total Foreign Remittance Affairs
Year

4.2.8 Total Inward Remittance Affairs: (For Last Five Months)
Months Amount (thousand) Percentage (%)
July 4983 1.02%
August 5128 1.03%
September 5450 1.06%
October 5621 1.03%
November 5701 1.01%
Table 4.2.8: Total Inward Remittance Affairs (Source: UBL, Ramna Branch).
Figure 4.2.8: Total Inward Remittance Affairs (July-November) 2014.
Interpretation: From the above graph we can say every year the rate of inward remittance is
increasing. So, the flow of inward remittance in November is higher than the previous months.
Because in July it was TK.4983 (thousand) & November it was TK.5701 (thousand) also
increased by TK.718 (thousand).
4983
5128
5450
5621
5701
4600
4800
5000
5200
5400
5600
5800
Total Inward Remittance Affairs
Months

4.2.9 Total Outward Remittance Affairs: (For Last Five Months)
Months Amount (thousand) Percentage (%)
July 1065 1.08%
August 1162 1.09%
September 1207 1.04%
October 1352 1.12%
November 1381 1.02%
Table 4.2.9: Total Outward Remittance Affairs (Source: UBL, Ramna Branch.)
Figure 4.2.9: Total Outward Remittance Affairs (July-November) 2014.
Interpretation: This graph indicates the flow of outward remittance has increased in
November than the previous months. So, we can say that there is good flow in the UBL,
Ramna Branch. Because in July it was TK.1065 (thousand) & in November it was TK.1381
(thousand) which has been increased by Tk.316 (thousand).
1065
1162
1207
1352 1381
0
200
400
600
800
1000
1200
1400
1600
Total Outward Remittance Affairs
Amount

4.2.10 Total Payment of Remittance: (For Last Five Months)
Exchange Names Amount (thousand)
Western Union 4500
Express Money 2300
Money Gram 4700
National Exchange 3800
UAE Exchange 1800
Table 4.2.10: Total Payment of Remittance (Source: UBL, Ramna Branch.)
Figure 4.2.10: Total Payment of Remittance (July-November) 2014.
Interpretation: There are many exchange companies which is enlisted with the UBL. But
there are shown only five exchange companies those provide daily foreign remittance service
with UBL. But Western Union & Money Gram are the most common exchanging companies
for the customers in UBL.
4500
2300
4700
3800
1800
Total Payment of Remittance
Western Union Express Money Money Gram National Exchange UAE Exchange

4.2.11 Outstanding IBP, LTR, DL, LIM, PAD (2012 & 2013):
(Amount in Lac)
Particulars 2012 2013
1. IBP (Inland Bill Purchase) 300 279
2. LTR (Loan against Trust
Receipt)
50 50
3. DL (Deferred Loan ) 212 211
4. LIM (Loan against Imported
Merchandise)
Nil Nil
5. PAD (Payment Against
Document)
Nil Nil
Table 4.2.11: Outstanding IBP, LTR, DL, LIM, PAD (Source- UBL, Ramna Branch).
Figure 4.2.11: Outstanding IBP, LTR, DL, LIM, PAD.
Interpretation: Here we can see that the outstanding IBP and DL has slightly decreased in
2013 than 2012. IBP & DL outstanding are decreased by TK.21& TK.1 lac than 2012. On the
other hand, LTR was unchanged than the previous year. But, there was no outstanding of LIM
& PAD in the year of 2012 & 2013.
0
50
100
150
200
250
300
350
IBP LTR DL LIM PAD
Outstanding IBP, LTR, DL, LIM, PAD
2012 2013

4.2.12 Forex. General Ledger US Dollar as on 30-11-2014:
Dr. Balance Particulars Cr. Balance
Foreign
Currency($)
Equivalent
Taka
Foreign
Currency($)
Equivalent
Taka
$ 70151.22 5450399 UBL General A/C - -
- - Forex General A/C - -
- - Foreign Currency Deposit
A/C(FCD)
$ 6798378 TK. 5282,000
- - Export Remittance Quota
A/C
$1586.94 TK. 123297
- - Special Foreign Currency
Deposit A/C
- -
- - NFCD A/C - -
- - RFCD A/C $ 580.50 TK. 45102
- - Marginal Deposit A/C - -
- - Foreign Currency Bill
Discounting A/C
- -
- - Income & Expenditure
Commission A/C
- -
$ 70151.22 TK.5450399 Grand Total $ 70151.22 TK. 5450399
Table 4.2.12: Forex. General Ledger (Source: UBL, Ramna Branch).
Interpretation: UBL has to maintain the Foreign Exchange General Ledger for controlling
the foreign currency, foreign deposit, foreign bill, income & expenditure, commission,
marginal deposit accounts as per accounting rules. It shows particularly $70151.22 equivalent
to TK.5450399.

5. SWOT Analysis
5.1 Introduction of SWOT Analysis
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage
of planning and helps marketers to focus on key issues. SWOT stands for strengths,
weaknesses, opportunities and threats. The SWOT analysis heading provide a good
framework for reviewing strategy, position and direction of a company or business
proposition or any other idea.
SWOT analysis of Uttara Bank Limited is given below:
5.1.1 Strengths:
Stable Source of Funds.
Strong Liquidity Position.
Satisfactory Profitability.
Low Cost Fund.
The Bank has been providing services successfully and has achieved goodwill in all
over the country.
Bank has a very competent and experienced top Management.
UBL is operating their business all over the country with 220 branches.
5.1.2 Weaknesses:
The remuneration of the officers of Uttara Bank is lower compared to other private
Banks. This is why high skilled human resources are discouraged to join here.
The Bank does not have any formal promotional activity, does not give any sort of
advertisement or does not have any marketing activity.
The decision making of the Bank is too much centralized. No decision is made
without the authorization of the head office.
It has high cost of fund.
It has excessive dependency on term of deposit.
Delegation of authority is centralized which makes the employee to realize less
responsibility.
The credit proposal evaluation process is lengthy.
Inadequate delegation of power.
Inadequate IT infrastructure.
Some Officers are not well trained.
Lesser degree of flexibility in sales and service in compared to competition.
“Bank Ultimus” are not upgraded than modern software of other banks.
Limited number of ATM booth.

5.1.3 Opportunities:
It has scope of market penetration through diversified products and wide banking
network.
The worldwide online banking will open more scope for UBL.
Growth of sales volume.
UBL can diversity its portfolio by taking new sector.
It has regulatory environment favoring private sector development.
UBL can introduce more consumer banking products.
UBL can provide service to all level of consumers through its branch network.
UBL can do Credit financing through its broad branch network.
Scope of whole sale banking with NBFIs (Non-Banking Financial Institution).
Increasing awareness of banking system.
E-money facility.
Advanced credit card business.
Growing need for alternate banking channel.
Banks can offer new innovative products.
5.1.4 Threats:
It has increased competition for the market for deposits.
Market share for lowering interest rate.
Govt. imposes tax and VAT on profile.
The most of the threats for the company are coming from the competitors. Bank has
a chance to lose its reputation and position if it does not maintain the Banking act,
rules and regulations accurately.
Deteriorated export, import and guarantee business due to indecent competition as
well as economic slump.
Increased completion in the banking sector.
Many multinational banks operate their activities in the country.
Inadequate market information.
Third generation private commercial banks and their offering different types of
attracting products.
Large non-performing assets of public sector banks.
Money laundering has been identified as a major threat to the financial services
community.
Overall liquidity crisis in money market.

6. Practical Experiences as an Intern
6.1 Position and Duties as an Intern:
An internship is work-related learning experience for individuals who wish to develop hands
on work experience in certain occupation field. An internship is position which allows a
student to gain professional experience in an occupational area which they are considering.
An internship is a supervised pre professional learning experience in which students apply
their skills knowledge in a professional setting. As a part of the Internship Program of
Bachelor of Business Administration (BBA) Program requirement, I was assigned to do my
internship at Uttara Bank Limited, Ramna branch for period of three months. I joined in Uttara
Bank Limited, Ramna branch on 13 October 2014 and it was finished 12 January 2015.
6.1.1 Internship Position:
As an intern I was act as an intern of the organization. My job was to gain the practical
knowledge from the bank. For this reason I observed practical works done by the officers of
the UBL, Ramna branch. I did some work to familiar the work. My learning experiences from
the various departments are given in the following table:
Placement Area Working Days
Cash Section 7 days
Foreign Exchange Section 18 days
Loan and Advance Section 18 days
Clearing Section 12 days
Remittance Section 16 days
6.1.2 The Nature of My Job & Responsibilities:
General Banking Division:
In General banking division I had lots of duties. Those are containing with Cash Counter
Section, Front Desk and Accounts Department.
The week I was in the cash department. The bank does not usually put intern nevertheless
they allowed me and I was lucky to experience first-hand what happens behind the counter.
My responsibilities in this department have been just to assist them in a small and possibly
way.
Use the Xerox machine to help them.
Counting vouchers.
Checking the individual EOD (End of day journal report) of each cashier.
Learn about Money Laundering Act.

Then I was assigned to Front desk and Account’s Department. I had a wide variety of
responsibilities:
Account opening.
Demand Deposit.
Give the information to customer about UBL product.
Finding FD, DPS, and old account opening forms.
Putting different seals for clearing.
Writing on printing pay orders.
Give the balance statement.
Cheque receive from customers for clearing.
Writing on vouchers for giving remittance.
Signature verification.—etc.
Advance & Loan Division:
It is really hard to work in this department for first time and I become very interested by later
on I worked hard and learned how to deal with :
Accept customer loan offer.
Discuss with person about loan.
Create new file for loan application.
Prepare Documentation form.
Observe evaluation paper.
Fill up CIB inquiry form.
Sorting the loan form and put that form in according to customers file.
Create sanction letter.
Observe cheque list.
6.1.3 My Observation:
This practical orientation is really necessary for the development and preparation of a
personal before entering in any professional area. The things that I have learned and
experienced at UBL are:
Meaning and understanding the responsibilities.
Necessity of commitment.
Punctuality and regularity is important.
Ability to interact with different sorts of people.
Accumulated valuable work-related skills.
Gained and understanding and become comfortable with professional work environment,
expectation, and social norms.

7. Findings, Recommendations and Conclusion
7.1 Findings:
During my internship period in the Uttara Bank Limited, I have worked in Ramna Branch for
three months. During this period I have found that:
All the employees of this department are skilled, active, self-motivated and absolutely
friendly to the clients.
There is adequate foreign exchange manual in UBL.
Lack of enthusiastic scheme for exporter and importer.
Helpful attitude of the staffs, shorter waiting time for customer service, product
features, margin policy, service charges, loan facility for opening L/C, accuracy of
UBL L/C service, online banking and security system are the most important service
attributes for the customers.
UBL’s net profit is increasing year by year.
The employees are not satisfied with the logistic support provided by the bank.
Return on Assets (ROA) of UBL was not superior.
Import and export for the last 5 years show a gradual increase and better performance.
Marketing for Foreign Exchange business demands special importance and extensive
research for historical manner of UBL.
UBL in Ramna Branch has SWIFT facilities. Very few bank in our country offer this.
By using this modern technology in Ramna Branch, provides faster service.
In UBL, Ramna Branch total inward and outward remittance progressively has
increased year by year.
Lack of promotional initiatives to expand the foreign exchange business specially the
Import L/C service.
Government rules and regulation often make problem for import and export market in
Bangladesh.
Satisfaction level of most of the customers is better proved by filling up some
questionnaires by L/C clients.
Most of the exchanging companies are enlisted for payment of foreign remittance,
providing quick services also.
The outstanding IBP and DL has slightly decreased in 2013 than 2012. On the other
hand, LTR was unchanged than the previous year. But, there was no outstanding of
LIM & PAD in the year of 2012 & 2013.
Uttara Bank Ltd. has successfully achieved improved operational results with all business
targets showing an impressive upward trend. Bank’s operation has achieved the confidence
of its customers with sound fundamentals in respect of deposits accumulation, loans and
advances and profitability. As a result the bank has been able to earn a steady profit growth.

7.2 Recommendations:
I had the practical exposure in Uttara Bank Limited for just three months, with my little
experience in the bank in comparison with vast and complex banking system; it is not so easy
to recommend some suggestions to enhance the performance level of the organization. I had
observed some shortcomings regarding operational and other aspects of their banking. On the
basis of my observation I would like to present the following recommendations.
Letter of credit opening procedure and margin requirement may be relaxed for prime
customers, otherwise new and competitive banks will take the clients away by giving
special facilities.
New customers should be given some advantage to open L/C. If they are treated well,
they may gradually become prime customer for UBL.
They should setup a strong and effective foreign exchange manual.
In foreign exchange department it is required to communicate with foreign banks
frequently and quickly to make the process easily by modern communication media.
To meet today's urge of the customer, the bank should introduce E - Banking system,
Credit Card and Automated Teller Machine (ATM) widely.
UBL also can go for some promotional activities for export business through public
relations department.
To provide quality service to the customer it is necessary to have a trained team of
staff.
The bank should take the initiative to develop an effective research and development
Centre for foreign exchange officials to get innovative ideas to capture the competitive
market.
Attractive incentive package for the exporter will help to increase the export and
accordingly it will diminish the balance of payment gap of UBL.
In our country financial problem is a great constraint in foreign trade. UBL is very
conservative for post-shipment finance. If bank stays in liberal position, prime
exporters can easily over come from financial constraint.
Bank can provide foreign market reports, which will enable the exporter to evaluate
the demand for their products in foreign countries.
Foreign exchange operation is more dynamic, less time-consuming and challenging
job for a bank. Uttara Bank Ltd. should pay more attention to cope up with modern
facility to face the challenges.
The request of the credit facilities in the form of L/C (s), PAD (s), and LTR(s) should
be assessed by a separate department (credit department) for approval of the
competent authority of the bank. After approval of the credit lines in the account, this
department shall convey to the foreign trade department the operational conditions of
the facilities to them for execution.

7.3 Conclusion:
As an organization the Uttara Bank Limited has earned the reputation of top banking
operation in Bangladesh. It is relentless in pursuit of business innovation and improvement.
It has a reputation as a partner of consumer growth. As a bank, Uttara Bank makes a strong
position through its various activities. Its number of clients/ amount of deposit and investment
money increases day by day. This bank already has shown impressive performance in Foreign
Exchange Business.
Uttara bank introduced a specialized banking service in Export Import business. With a bulk
of qualified and experienced human resource, Uttara Bank Limited can exploit any
opportunity in the banking sector. Since its establishment it is rendering its services with
qualified and knowledgeable staff. The environment of Uttara Bank Ltd is very modernized
and friendly. The staffs are specialized in their respective fields. Each of them works on their
own and there is supervision from the top. The motivation of the staff, we believe comes from
the very sense of responsibility. Each member is individually responsible for his or her work.
Consumers are more or less satisfied with the present services of the bank. Management
should think to start new services and take different types of marketing strategy to get more
customers in this competition market of banking.
The Uttara Bank can contribute any opportunity in the banking sector. It is pioneer in
introducing many new products and services in the banking sector of the country. But it faces
continuous challenge from the local private banks and foreign banks, which mainly
specialized in the consumer banking. As a result, it has to develop new products and services
to ease the competition on a continuous basis.
The Uttara Bank Limited, Ramna Branch is one of the most potential branches in the banking
sectors. It has a large portfolio with huge assets to meet up its liabilities and the management
of this branch is equipped with the expert bankers and managers in all level of management.
Profit of branch is increasing every year. So it is not an easy job to find out the drawbacks of
this branch.
From the practical point of view I can declare boldly that I really have enjoyed my Internship
at this bank from the very first day. Moreover, this internship program that is mandatory for
my B.B.A Program, although short-date, obviously has helped my further thinking about my
career. I have tried my soul to incorporate the research report with necessary relevant
information in my report.

References:
Foreign Exchange Operation Manuals of Uttara Bank Limited.
L/C files of different organizations of Uttara Bank Limited.
General Banking Manual of Uttara Bank Ltd.
Guideline for Foreign Exchange Transactions published by Bangladesh Bank.
Uttara Bank web site. (www.uttarabank-bd.com).
Annual Report of Uttara Bank Limited, Dhaka Bangladesh (2009-2013).
Madura, Jeff, (2009), ―Financial Markets and Institutions‖, 7th Edition, Prentice –
Thomson, South-Western.
Choudhury, Dr. T.A, Modes of Payment in International Trade, Reading Materials on
International Trade & Finance (E-102), Bangladesh Institute of Bank Management
(BIBM)
Andley, K.K & Mattoo, V.J, Foreign Exchange Principles & Practices, Sultan Chand
& Sons, New Delhi, 1996.
E.W. and Gill, E. k. (2001) ―Commercial Banking.14th Edition; Person Education
Inc., Singapore.
http://www.google.com
http://en.wikipedia.org/wiki/List_of_Banks_in_Bangladesh
http://en.wikipedia.org/wiki/Finance_lease
http://www.bangladeshbank.org/regulationguideline/foreignexchange/app1vol1.html
http://www.bangladesh-bank.org/
http://www.foreignexchangecom.org.com/
http://www.bankall.org/tag/ucpdc-600/
http://www.assingmentpoint.com/
http://www.ehow.com/
http://www.scribd.com/
http://www.investopedia.com/
Foreign Exchange Regulation Act (1947).
Foreign Exchange Committee.
FOREX HEDGE By Naveen Mathur in “Economic Times” august 12 2013.
Dr. Paul Einzing (2006 L.R. Chowdhury) in “Economic Review”.
Mr. H.E Evit (2010) “Section of Economic Science”
Edna Carew (1979)- “A study on Foreign Exchange and Market Control”
A report on General Banking & Foreign Exchange Activities.
A study on Foreign Exchange Operations.
A study on Foreign Exchange Banking Activities & Ratio Analysis.

Appendices:
This questionnaires have been prepared for a result on “Satisfaction of L/C Clients Toward Uttara
Bank Limited, Ramna Branch.” All information provided will be treated in accordance with the
Data Protection Law 2009. I will only use this information for the private purposes you have agreed
to. The findings of questionnaires will be included as a part of the presented Internship Report.
Details of Organization:
Name of Respondent:
Name of Organization:
Item of Business:
Contact no:
Mark your level of agreement with the statements below by circling an option. (1= strongly
agree, 2= agree, 3= neutral, 4= disagree 5 = strongly disagree)
a) UBL L/C client’s service is accurate.
1) Strongly Agree 2) agree 3) neutral 4) Disagree 5) Strongly Disagree
b) The staffs are expert about Foreign Exchange Banking System of UBL.
c) UBL provides insurance facility for L/C clients.
d) UBL provides loan facility to open L/C to their respected clients.
e) The staffs of UBL are very helpful to their clients.
f) Clients have to wait less time to get the Services.
g) The margin policy of UBL is completely satisfactory.
h) The interest rate charged against loans by UBL:
(a) High (b) Low
i) The service charges for operating L/C in UBL:
(a) High (b) Low
j) The harmonization between foreign exchange dept. and loan dept. of UBL:
(b) High (b) Low
Thanking You,
Md. Mehedi Hassan
B.B.A. (AIS), ID- 0906045
Comilla University.
“Satisfaction of L/C Clients Toward Uttara Bank Limited, Ramna Branch”

UBL main report

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