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Chapter 1

Introduction

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Introduction of the Study:As I had appeared in MBA final semester I had to go through are three month long Dissertation program for the fulfillment of my MBA Program

requirement. Though I am an employee of Uttara Bank Ltd. that is why I had been assigned to complete my dissertation at Uttara Bank Ltd. Here I had communicated with Uttara Bank Ltd. accordingly. After a certain

correspondence I had been selected as an Internee of Uttara Bank Ltd. and had been deputed at General Banking, Local office , Dhaka. It was great opportunity for me to know about General Banking & foreign exchange activities of , Uttara Bank Ltd., Local office Dhaka.

In my whole MBA program I had a lot of courses like Banking Theory and Practice, Financial Management, Service Marketing, General Banking & foreign exchange activities , Accounting etc. But what I had learnt was purely theoretical. It was needed to do some practical work for more clarification. Because of my great Banking on General Banking & foreign exchange activities procedure of Uttara Bank Ltd., I had chosen the Uttara Bank Ltd.

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Objective of the Study :The objective of my study are as follows : 1. To know about the history, culture, management of Uttara Bank Limited. 2. To evaluate overall financial performance of Uttara Bank Limited.3.

To know about methodologies of General Banking & foreign exchange .

4. To text checks a few case studies.

Rationales of the study :In all sorts of commercial operations Banking is inherent specially for the banks & financial institutions where General Banking & Foreign exchange activities an

essential factor which is required to be managed suitably at least to keep the same as minimum as possible. In simple language, general banking refers to the possibility of that extent of obligation which the borrower or concerned party will not be able to fulfill in accordance with the banking terms and conditions.

METHODOLOGY OF THE STUDY:It is an exploratory study. The information to be presented in this report will be collected from both primary and secondary sources & case studies. Primary information to be collected from the executives of the bank & clients of the bank. And secondary data will be collected from Uttara Bank Ltd. Training Institute, Uttara Bank Annual Report, Journals and Credit Management related papers.

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Sources of Data :While determine the sources of information that would be required for the study. I used both primary and secondary data to conduct my survey. In addition, I have included my own observation as a valuable and first hand source while describing the performance and the evaluation of the bank.

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1.5.1 PRIMARY DATA:I have collected primary data by interviewing employees and clients of Uttara Bank Limited. Primary data were derived through the discussion with the employees of the organization. Clarifications of issues from different concerned of issues from different concerned officials of UBL. I have collected primary data in the following way:

Face to face interview with both employees and clients. By telephoning clients. Through structured questionnaire. Designing unbiased and uncontrolled survey.

1.5.2 Secondary data:I have used different types of secondary data in my research. Sources of secondary data are is follows:

1.5.3 Internal Sources: Annual report of Uttara Bank Ltd. Information regarding UBL Corporate Branch, Dhaka.

1.5.4 External Sources

Different books and periodical related Bangladesh Bank Report Various journal of Bank. Web site of Uttara Bank Ltd. (www.uttarabank-bd.com)

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1.6 Limitation of the study:Limitation of the study which I faced are as follows ----

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Three months time is not enough to evaluate the General Banking & Foreign Exchange activities of a bank.

2. To collect various papers I need a huge time is required but as an employee of the bank I dont have sufficient time. 3. As the employees are very much busy with their own work I didnt get enough time for discussion with them. 4. It is difficult to get information regarding case history, problems & allied matters from concerned officers.

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Chapter 2

Profile the organization

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2.1 History & Background of Uttara Bank Limited :-------------------------------------------------------------------------------------------------------------

Before introducing Uttara Bank limited, one of the best private sector bank in Bangladesh, I would like to through some light upon the growth and development of our banking system since independence. Growth and development of our banking system may be divided into three phases. The complete government ownership and excessive government interference, absence of prudential regulation and inadequate legal support for debt recovery, characterized the first phase between 1972 to 1982. The performance of our banking system during 1972 to 1982 was commendable in respect of expanding network and providing easy credit to the socially desirable sectors but equally frustrating with regard to maintaining viability and customer services. The second phase from 1983 to 1989 was characterized by denationalization and privatization of banking system without broad-basing the prudential and information regulatory frame work, However, these measures of

denationalization and privatization could not the bring viability and operational efficiency of banking system.

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Under the above circumstances and with the recommendation of Word Bank, a Financial Sector Reform Project (ESRP) was undertaken in 1989 by the government which can be identified with third phase of the development of our banking system. FSRP includes the following measures: Gradually allowing financial institutions to up financial product price according to market forces; raising the loan classification standard in phases; improving level of the financial institutions to international standard in phases; improving the capital positions of Nationalized Commercial Bank (NCBs) and private commercial banks (PCBs) and fixing it at international standard level' delegating greater autonomy banks specially in terms of selecting their loan portfolio' strengthening Bangladesh Bank's role in the field of supervision of banks' ensuring enabling legal environment by enacting bank companies act 1991 and financial loan court act 1990 etc. The government of Bangladesh has also enacted some important acts namely financial institutions act 1993, securities and exchange commission act 1993, the companies act 1994 and recently Bankruptcy act 1997. These reform measures have been aimed imposing financial discipline on the banks in the short-run and making bank operate increasingly on the basis of market forces so as to achieve operational efficiency.

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The results so far achieved out of the reform measures are not very encouraging. The bankers and bank management is yet to be guided adequately by market forces. The financial discipline has not yet been brought back. The collapse of share price indexes during later part of 1996, show pace of industrialization, lack of potential commitment, recent flood of 1998 all have been further worsening healthy growth to our financial and economic system. However, there has been some positive side of financial sector form. New management tools like performance system (PPS), Lending Risk Analysis (LRA), New Loan Ledger Card (NLLC), Management information system (MIS), Credit Risk management & Assets Liabilities Management are contributing to improve loan portfolio management through a package deal. PPS plans for lending on good and profitable loan portfolios, LRA analyses risks before lending, NLLC records loan performance of borrowers with an early warning system through overdue aging and MIS ensures timely and accurate loan information flow. To conclude we can say reforms are on going process because there are always changed in banking business and situation. We must try out best to prepare ourselves for accepting the challenges of the new century knocking at the door.

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2.2 Legal Status & Nature of the Bank :-------------------------------------------------------------------------------------------------------------

Uttara Bank Limited has been a nationalized bank in the name of Uttara Bank under the Bangladesh Bank (Nationalization) order 1972, formally known as Eastern Banking Corporation Ltd. started functioning on and from 28-01-1965. 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 Limited was incorporated a banking company on 19-06-1983 and obtained business of commencement certificate on 21-08-1983. The bank floated shares in the year 1984. The Registers Office of the bank is located at 90 Motijheel, Commercial Area, Dhaka-1000. It has 198 branches all over Bangladesh through which carries out all its banking activities. The bank is listed in the Dhaka Stock Exchange Ltd. as a Publicly quoted Company for trading of its ordinary shares.-------------------------------------------------------------------------------------------------------------

2.3 ORGANIZATIONAL STRUCTURE OF UBL:-------------------------------------------------------------------------------------------------------------

Uttara Bank Ltd. Expanded its network of operati