Leadership Style

on
Uttara Bank Ltd.
Barisal Branch, Barisal.
Assignment : Fall -2006
rgani!ational Beha"ior
#o$rse code : %&'-()0

MGT-530
Leadership Style
on
Uttara Bank Ltd
Narayanganj Branch, Narayanganj.
Prepared By :
Mohammad Salahuddin Bhuyan
ID No.# MBA02706416
Stamford Univr!ity
Sidd!ha"ri# Dha$a.
Prepared For:
M!. Samina
In!tra%tor
Stamford Univr!ity
Stamford University
Leadership Style
on
Uttara Bank Ltd
Barisal Branch, Barisal.
December 01,2006
To,
The Registrar
Stamford University
Dhaka.
Subject: Submission my internship report on Uttara Bank Ltd Narayanganj
Branch,
Narayanganj.
Sir,
Im !"eased to s#bmit yo# this re!ort as o#r re$#irement .%o&ever, I have thoro#gh"y
en'oyed !re!aring this (Re!ort &hich as contrib#ted significant"y to my #nderstanding
abo#t the organi)ation. Im !"eased to &ork in this organi)ation. I attended *rogram in
the +arisha" +ranch of ,Uttara +ank -td. for a !eriod of 1/0ne1 months from 1
st
2ovember 2006 to30 2ovember 2006 and s#ccessf#""y com!"eted the -eadershi! sty"e
on Uttara +ank -td , +arisa" +r#nch, +arisa".
Im no& s#bmitting this -eadershi! sty"e in f#"fi""ment of the re$#irement of my 4+5
*rogram.
I therefore re$#est yo# to kind"y acce!t my sincere effort and This Re!ort.

Thanking 6o#
Sincere"y 6o#rs,
777777777777777777777777777777
4ohammad Sa"ah#ddin +h#yan
ID 8 4+502906:16
St#dent of 4asters of +#siness 5dministration /4+51
Stamford University

Table of Contents
Serial
No.
Topics Page No.
1 ckno!"edgement #
$ %&ecuti'e Summary (
) *ission statement, goa"s and objecti'es +
, S*' Analysis +
# -o"e o. banking in *odern %conomy 1/
( 0enera" Banking 1$112
+ Loca" -emittance 3epartment 121$4
4 5ash 3epartment $41$2
2 5"earing 3epartment )/1))
1/ Loans 6 d'ance )+1,/
11 7oreign %&change ,/1,(
1$ 5onc"usion ,+
Ackno+ledgement
;irst and foremost I e<!ress my admiration to 5""ah &ho enab"e me to com!"ete this
re!ort .I &o#"d "ike to e<!ress my gratef#" gratit#de and sincerest a!!reciation of a"" the
;ac#"ty of RR= +arisa" for he"!ing me to com!"eted my 4+5 Second Semester =o#rse.
I &o#"d "ike to thank the management of Uttara bank "td. for giving me the o!!ort#nity
to do my "eadershi! sty"e in their esteemed organi)ation. I &o#"d "ike to e<!ress my
gratit#de to a"" the staff of +arsa" branch for !roviding me #sef#" information regarding
branch and their &ho"e7 hearted, friend"y coo!eration d#ring my re!orts.
;ina""y I &o#"d "ike to e<!ress my s!ecia" gratit#de to 4r. S4. Sa"eh#ddin 5hmed
/5>4 1 4anager of Uttara bank "td, 2arayangan' branch. &ho &as my s#!ervision
d#ring : &eeks stay in +arisa" branch for his efficacio#s g#idance in !re!aring this
re!ort. I &o#"d convey thanks to 4r. +i!"ab ?R %a"der /*01 Second 0fficer of +arisa"
branch, 4r. @ahangir %ossain /*01, incharge of foreign e<change de!artment, 4r. 5?
4o#taf#)#r Rahman /0fficer grade711, head of the "oans and advance de!artment, 4r.
2asir#ddin +h#iyan /*01 , In charge >enera" +anking, ="earing and +i""s =o""ection of
the branch, 4r. -okman %ossain +h#iyan /*01 =ash Incharge 7,4r. 5b#" ?a"am 5)ad
/0fficer gradd711 +i""s Section, 4am#nar Rashid and Ram)an 5"i /0fficer gread711,
5dvance De!artment. 4r. 4am#n 5sst. 0fficer of foreign e<change de!artment, 4r. 4d
Shakyat 5"i +h#iyan, 5sst. 0fficer, 4r. 4as#d 5hmed 4r. Shi!on 4ia, 5ssistant
0fficer, 4r. 4i)an#r Rahman, 5ssistant 0fficer, 4r. 5bd#s Sa"am, officer grade 72 of
acco#nts, 4rs. 2a)ma +eg#m /c"ean cash1, 4d. 2#ra 4iah /Driver1 Sohrab %ossain
/Driver1 ;orhad %ossain /4assanger1 5tika S"#tana / massanger1 +adsha 4ia /5rmed
>#ard1 4onir %ossain /5rmed >#ard1 4omota) Uddin /5rmed g#ard1 for !roviding me
necessary data for !re!aring this re!ort .
,-ec$ti"e S$mmary, .istory o/ the company
+arisa" +ranch began its 'o#rney &ith the ina#g#ration of the Uttara bank at 5rga"i<mi
+havan +arisa" +ranch +arisa". This re!ort is an assigned 'ob as a !ertain f#"fi""ment of
co#rse teacher Dr. 4d. 5t#ar Rahman of So#theast University. Its an o!tim#m
aggregated o#tcome of , The -eadershi! Sty"e on..
5na"y)ing The "eadershi! Sty"e on a !artic#"ar organi)ation is a rea""y t#ff 'ob is
accom!"ish, b#t &e have en'oyed it very m#ch.
Some of the !rob"em of the +arisa" branch are s#mmed detai"s in re!ort,7"ack of ne&
c"ients, shortage of staff, staff de7motivation d#e to "ate &orking ho#rs, over de!endence
of fe& staff, and fe& c"ients, absence of training, insignificant marketing efforts. 5s
b#siness comm#nity no& has more o!tion to avai" internationa" trade service thro#gh a
n#mber of instit#tion !ractica""y more c#stomer orientation is to satisfied c#stomer needs
and retain these c#stomer. ;ina""y some !o"icies im!"ementation and recommendation
for f#t#re im!rovement of the branch .
+arisa" branch began its o!eration in 1AB: &ith the ina#g#ration of Uttara bank. +arisa"
branch cond#ct a"" ty!es of commercia" b#siness activities. The bank is a"so rendering
!ersona" credit, services re"ated to "oca" and foreign remittances and a"so 5"" ty!es of
foreign C<change +#siness. The bank strategy is grad#a""y cover tota" area of banking
this re!ort cover the tota" area of banking of +arisa" branch. the re!ort intends to cover a
com!rehensive ana"ysis of overa"" activities of +arisa" +ranch, an a!!raisa" of
!erformance and management effectiveness. +arisa" branch came into attention of every
one &hen it became first among a"" the branch of Uttara bank &hereas Uttara bank stood
in first !osition among a"" commercia" bank. Uttara bank +arisa" branch is o!erating
thro#gh 2D !eo!"e,among them fo#r are *0,: Senior !rinci!a" officer , 2 are officer grade
E1, D are assistant officer, 2 messenger 3 g#ard and other !art time "abor. +ranch has
three de!artment one for foreign e<change, another for "oans and advance, and others
de!artment cond#ct genera" banking activities. +arisa" branch offer a &ide range of
services to its c#stomer inc"#ding "oca" cor!orations, nationa" com!anies, m#"tinationa"
com!anies, domes tic and other donor agencies, 2>0S and other financia" instit#tions.
4a'or c#stomer are big com!anies &ho transaction high vo"#me amo#nt of b#siness.
Thro#gh its e<!ert em!"oyees and dedicated service amo#nt of de!osits, im!ort, e<!orts,
"oca" and foreign remittance, "oans and advance, interest, net !rofits are increases
grad#a""y. The ma'or b#siness cond#cted by +arisa" branch areF
;oreign e<change
-oans and advance
+i""s receiving and bi""s co""ections /*.0.D.D. =heck, bi""s etc.1
Iss#es of *.0, D.D, 4.T.,T,T, S.=., -S=.etc.
;oreign and "oca" remittance.
Mohammd Sha$yat Ali Bhuiyan
ID # 200614210&021
Student of : MBA
Southa!t Univr!ity
Bari!al 'am(u!# Bari!al.
O!e"tives# Met$odo%o&y
of the Study
,To assist in bring high $#a"ity service to o#r c#stomer and to !artici!ate in the gro&th
and e<!ansion of nationa" economy. To set high standard of integrity and bring tota"
satisfaction to o#r c"ients, share ho"ders and em!"oyees. To become to! most bank in the
co#nty , higher gro&th and !rofit, rendering techno"ogy driven innovative services by o#r
dedicated team !rofessiona"s..
0b'ectives and goa"sF
%igher !ersona"i)ed services .
=#stomer driven foc#s.
Tota" commitment to $#a"ity services.
0#tstanding services.
=ontrib#te to the economy.
G#a"ity of h#man reso#rces.
=ommitments to its c"ients at each "eve".
The !rimary ob'ectives of this re!ort is to fi"" !artia" re$#irement of ++5 degree.
+esides f#"fi""ing the degree re$#irement, this internshi! re!ort intends to cover a
com!rehensive ana"ysis a banking activities of +arisa" branch of Uttara bank.
The re!ort is aimed at st#dying and #nderstanding the vario#s !rod#cts offered by the
different de!artment of Uttara bank to its c"ients as &e"" as severa" activities to
carried o#t bank ob'ectives.
Re!ort a"so st#dies ho& +arisa" branch maintain gro&th in com!etitive b#siness.
;indings !rob"em in the banking !roced#re of different de!artment, strength and
&eakness, o!!ort#nity, and threats of the Uttara branch.
*roviding !ossib"e so"#tion that &i"" increase bank !rofits and maintain gro&th in the
market.
;ina""y the re!ort &i"" a"so eva"#ate f#t#re !ros!ects of the branch.
Scope
This re!ort covers a"" the banking activities of Uttara bank "imited Uttara branch, s#ch as
-H= o!ening, -H= advising. -H= negotiation, -H= confirmation, reimb#rsement, !ayment
co""ection, "oan against tr#st recei!t, "oans and advance, recovery of "oans , foreign and
"oca" remittance of bank, bi""s receive and co""ections, iss#ing of D.D.,*.0., 4.T,,T.T. as
&e"" as !rob"ems in banking !rocess. These !erformance ana"ysis of +arisa" branch &as
carried o#t to determine the !rogress of ban k and !ros!ect in f#t#re.
*ethodo"ogy
=ertain method and techni$#es &ere #sed to co""ect data for this re!ort. +oth !rimary and
secondary so#rces &ere taken as effective means of co""ecting data re"evant for this
re!ort. s#rvey, G#estionnaire, !ersona" conversation &ith to! e<ec#tive of the bank &as
the basic techni$#es that &as em!"oyed to co""ect !rimary data from the c"ients , and
!eo!"e of the organi)ation. Distinct G#estionnaire &ere made one for c"ients another for
branch !eo!"e. Information abo#t the varieties of services, c#stomer !reference of the
branch, !eo!"e motivation to &orks &as co""ected thro#gh intervie&. data regarding
c#stomer bank choice, "ocation, safety, sec#rity, service range, $#a"ity of services,
banking time, c#stomer satisfaction &ere a"so gathered thro#gh direct G#estionnaire.
+esides of the !eo!"e motivation by management to rendered service a"so gathered
thro#gh direct $#estionnaire. 0n the other hand secondary so#rces &ere a"so #sed to
co""ect data regarding bank !rofits, de!osits, im!ort, e<!ort. !#b"ication and database
&ithin organi)ation , ann#a" and $#arter"y re!ort, month"y statement enab"e me
!erforming trend and ratio ana"ysis on the branch. In addition information from different
!eo!"e, banker, !ersona" ins!ection enab"e me a!!raisa" management effectiveness and
o!erationa" !erformance of the branch. +ank !eo!"e and c#stomer !reference of branch
&ere a"so meas#red thro#gh some o!en7ended G#estionnaire.
The bank be"ieves that comm#nication &ith and feedback from its c"ients he"! it achieve
its goa" of !roviding &or"d7 c"ass !rod#cts and services. +ank reg#"ar"y cond#cts c"ients
satisfaction s#rveys make immediate accommodations and ad'#stments &here needed. It
a"so constant"y monitors its standards, and strives to meet c"ients re$#irements.
Findings
Leadership Style
on
Uttara Bank Ltd. Barisal Branch,
Barisal
LEADERSHIP
-eadershi! can be defined as inf"#ence, that is, the art or !rocess of inf"#encing
!eo!"e so that they &i"" strive &i""ing"y and enth#siastica""y to&ard the
achievement of gro#! goa"s.
LEADER
L-Loyal/ Listener
E-Ed!ated
A-A!ti"e
D-Dtifl/ Dpli!able
E-Energeti!/ Enthsiasti!
R- Realisti!/ Responsible
MA'AG()*A+ G)*, OF Uttara Ban- +td. Brarisa% Bran"$
Uttara Ban$ )td Mana*rial +rid "a! dvlo( and +nral Bhavioral S%inti!t
hav !(aratd th t"o (rimary %on%rn! in or*ani,ation .
1 The !on!ern for #anage$ent
2 The !on!ern for people
9
8
7

6
Concern 5
For 4
People 3
2
1
1 2 3 4 5 6 7 8 9
'on%rn for Mana*mnt
The manageria" grid is b#i"t on t&o a<is. 0ne re!resenting the !rod#ction and the other
re!resenting !eo!"e. +oth the sca"es i.e. hori)onta" I vertica" a<is are treated as a sca"e
from 1 to A &here 1 re!resents the "east invo"vement and A re!resents the most
invo"vement.
The manageria" grid diagram can be inter!reted as fo""o&sF
5oordinate 81.19 F
This is ca""ed ,im!overished management. %ere managers make minim#m effort to get
the &ork done.
5oordinate 82.19:
It is kno&n as ,a#tocratic task management.. %ere managers are concerned on"y &ith
deve"o!ing an efficient o!eration &ho have "itt"e or no concern for !eo!"e.
5oordinate 81.29:
It is ca""ed ,co#ntry7c"#b management.in &hich managers have "itt"e or no concern for
!rod#ction b#t are concerned on"y for !eo!"e.
5oordinate 82.29:
It is kno&n as ,team management.. %ere managers dis!"ay in their actions the highest
!ossib"e dedication both to !eo!"e and to !rod#ction.
5oordinate 8#.#9:
This is kno&n as ,midd"e of the road ,. %ere managers have medi#m concern for
!rod#ction and for !eo!"e. They obtain ade$#ate mora"e and !rod#ction.
5ontingency :. Leadership Sty"e
The first com!rehensive contingency mode" for "eadershi! &as deve"o!ed by ;red
;ied"er. The ;ied"er contingency theory !ro!oses that effective gro#! !erformance
de!ends #!on the !ro!er match bet&een the "eaderJs sty"es of interacting &ith
s#bordinates the degree to &hich the sit#ation gives contro" and inf"#ence to the "eader.
These t&o factors are described be"o&F
;denti.ying Leadership sty"e:
;ied"er be"ieves a key factor in "eadershi! s#ccess is the individ#a" basic "eadershi! sty"e.
So ;ied"er created -*= /-east *referred =o&orker1 $#estionnaire to find o#t &hat the
basic sty"e is. It contains 16 contrasting ad'ectives s#ch as !"easant7#n!"easant, efficient7
inefficient, o!en7g#arded, s#!!ortive7 hosti"e etc.
If the -*= is described in re"ative"y !ositive terms /a high -*= score1 then the
res!ondent is !rimari"y interested in good !ersona" re"ations &ith the co7&orkers and
&o#"d be re"ationshi!7oriented.
In contrast, if the -*= is seen in re"ative"y #nfavorab"e terms /a "o& -*= score1,
the res!ondent &o#"d task7oriented.
3e.ining the situation:
;ied"er has identified three contingency dimensionsF
a1 -eader7member re"ations
b1 Task str#ct#re
c1 *osition !o&er
a9 Leader1member re"ations:
The degree of confidence, tr#st and res!ect s#bordinates have in their "eader.
b9 <ask structure:
The degree to &hich the 'ob assignments are !roced#ri)ed i.e. str#ct#red or #nstr#ct#red.
c9 =osition po!er:
The degree of inf"#ence a "eaderJ has over !o&er variab"es s#ch as hiring, firing,
disci!"ine, !romotions and sa"ary increases.
The ne<t ste! of this theory is to eva"#ate the sit#ation in term of these three contingency
variab"es. ;ied"er states that the better the "eader7member re"ations, the more high"y
str#ct#red the 'ob and the stronger the !osition !o&er, the more contro" or inf"#ence the
"eader has.
=<> 1 0:L
0ne of the most res!ected a!!roaches to "eadershi! is the !ath7goa" theory deve"o!ed by
Robert %o#se. The essence of the theory is that its the "eaderJs 'ob to assist fo""o&ers in
attaining their goa"s7 and to !rovide the necessary direction and s#!!ort to ens#re that
their goa"s are com!atib"e &ith the overa"" ob'ectives of the gro#! or organi)ation.
The !ath7goa" theory s#ggests that the main f#nction of the "eader is to c"arify and set
goa"s &ith s#bordinates, he"! them find the best !ath for achieving the goa"s and remove
obstac"es.
In this theory, the situationa" .actors contrib#ting to effective "eadershi! inc"#deF
K The characteristics of s#bordinates
K The &ork environment
In addition, a "eader beha'ior is categori)ed into fo#r gro#!sF
K S#!!ortive "eadershi!
K *artici!ative "eadershi!
K Instr#menta" H Directive "eadershi!
K 5chievement7oriented "eadershi!
This theory s#ggests that the a!!ro!riate sty"e de!ends on the sit#ation. 5mbig#o#s I
#ncertain sit#ations can be fr#strating for s#bordinates. Lhen s#bordinates are conf#sed,
then the "eader may te"" them &hat to do and sho& them a c"ear !ath to goa"s.
=haracteristics of s#bordinates

-eader behavior 0UT=04CS 0R
>05-S

Lork environment
=<> 1 0:L
The e<hibit indicates that, *ath7goa" theory !ro!oses t&o c"asses of sit#ationa" factors
that moderate the "eadershi! behavior. The key to the theory is that the "eader inf"#ences
the !aths bet&een behavior I goa"s.
Uttara Bank Ltd. Barisa" Branch Barisa"
5haracteristics :. :rgani?ation 5u"ture:
;nno'ation and risk takingF The degreeto &hich em!"oyees are enco#rage to be
innovative and take risk.
ttention to detai": The degree to &hich the em!"oyees are e<!ected e<hibit !recision,
ana"ysis, and attention detai".
:ut come orientationF The degree to &hich management foc#ses on res#"ts or o#tcomes
rather than on the techni$#es and !rocesses #sed to achieve those o#tcomes
=eop"e orientationF the degree to &hich management decisions take into consideration
the effect of o#t7 comes on !eo!"e &ithin the organi)ation.
<erm orientationF The degree to &hich &ork activities are organi)ed aro#nd term rather
than individ#a"s.
ggressi'eness: The degree to &hich !eo!"e are aggressive and com!etitive rather than
easygoing.
Stabi"ity: The degree to &hich organi)ationa" activities em!hasi)e maintaining the stat#s
$#o in contrast to gro&th.
Cach of these characteristics e<ists on a contin##m from "o& to high a!!raising the
organi)ation on these seven characteristics, then, gives a com!osite !ict#re the
organi)ations c#"t#re.
:rgani?ation 5u"ture o. Uttara Bank Ltd. Barisa"
Brach, Barisa".
0rgani)ation c#"t#re re!resents a common !erce!tion he"d by the organi)ations
members. This &as made e<!"icit &hen &e defined c#"t#re as a system of shared
meaning. Le sho#"d e<!ect, therefore, that individ#a"s &ith different backgro#nds or at
different "eve"s in the organi)ation &i"" tend to describe the organi)ations c#"t#re in
simi"ar terms.
3ominant cu"ture
C<!resses the core va"#es that are shared by a ma'ority of the organi)ation members. 5
dominant c#"t#re e<!resses the core va"#es that are shared by a ma'ority of the
organi)ation members. Lhen &e ta"k abo#t an organi)ations c#"t#re, &e are referring to
its dominant c#"t#re.
Subcu"tures
4ini c#"t#res &ithin an organi)ation, ty!ica""y defined by de!artment designations and
geogra!hica" se!aration. S#bc#"t#re tends to deve"o! in "arge organi)ation to ref"ect
common !rob"ems, sit#ations, or e<!erience that members face. These s#bc#"t#res are
"ike"y to be defined by de!artment designations and geogra!hica" se!aration.
Strong 'ersus !eak cu"ture
It has become increasing"y become !o!#"ar to differentiate bet&een strong and &eak
c#"t#res. The arg#ment here is that strong c#"t#res have a greater im!act on em!"oyee
behavior and are more direct"y re"ated to red#ce t#rnover.
The organi)ations core va"#es are both intense"y he"d and &ide"y shared. The more
members &ho acce!t the core va"#es and the greater their commitment to those va"#es is,
the stronger the c#"t#re is.
:rgani?ationa" cu"ture 'ersus nationa" cu"ture
2ationa" differences that is, nationa" c#"t#res m#st be taken into acco#nt if acc#rate
!redictions are to be made abo#t organi)ationa" behavior in different co#ntries.
The research indicates that nationa" c#"t#re has a greater im!act on em!"oyees than does
their organi)ations c#"t#re.
7UN5<;:NS
Le have a""#ded to organi)ationa" c#"t#res im!act on behavior. Le have a"so e<!"icit"y
arg#ed that a strong c#"t#re sho#"d be associated &ith red#ced t#rnover. The f#nctions
that c#"t#res !erform and assess &hether c#"t#re can be a "iabi"ity for an organi)ation.
=#"t#re !erforms a n#mber of f#nctions &ithin an organi)ation.
7irst, it has a bo#ndary defining ro"e, that is , it creates distinctions bet&een one
organi)ation to another organi)ation.
Second, it conveys a sense of identity for organi)ation members.
<hird, c#"t#re faci"itates the generation of commitment to something "arger that ones
individ#a" se"f interest.
7ourth, it enhance the stabi"ity of the socia" system. =#"t#re is the socia" g"#e that he"!s
ho"d the organi)ation together by !roviding a!!ro!riate standards for &hat em!"oyees
sho#"d say and do.
7ina""y, c#"t#re serves as a sense making and contro" mechanism that is of !artic#"ar
interest to #s.
Uttara Bank Ltd. Barisa" Branch Barisa" %mp"oyees Learn 5u"ture
=#"t#re is transmitted to em!"oyees in a n#mber of forms, the most !otent being stories,
rit#a"s, materia" symbo"s, and "ang#age.
Stories
D#ring the days &hen %enry ford II &as chairman of the ford motor co. one &o#"d have
been hard !ressed to find a manager &ho had not heard the story abo#t 4r. ford
reminding his e<ec#tives, &hen they got too arrogant, that ,its my name thats on the
b#i"ding.. The message &as c"earF %enry ;ord II ran the com!any.
-itua"s
Rit#a"s are re!etitive se$#ences of activities that e<!ress and reinforce the key va"#es of
the organi)ation E &hat goa"s are most im!ortant, &hich !eo!"e are im!ortant, and &hich
!eo!"e are e<!endab"e. re!etitive se$#ences of activities that e<!ress and reinforce the
key va"#es of the organi)ation, &hich goa"s are most im!ortant, &hich !eo!"e are
im!ortant, and &hich are e<!endab"e.
*ateria" symbo"s
The head$#arters of 5"coa doesnt "ook "ike yo#r ty!ica" head office o!eration. There are
fe& individ#a" offices, even for senior e<ec#tives. It is essentia""y made #! of c#bic"es,
common areas, and meeting rooms. This informa" cor!orate head$#arters conveys to
em!"oyees that 5"coa va"#es o!enness, e$#a"ity, creativity, and f"e<ibi"ity.
Some cor!orations !rovide their to! e<ec#tives &ith cha#ffe#r driven "imo#sines and,
&hen they trave" by air, #n"imited #se of the cor!orate 'et. 0thers may not get to ride in
"imo#sines or !rivate 'ets b#t they might sti"" get a car and air trans!ortation !aid for by
the com!any.
Language
4any organi)ations and #nits &ithin organi)ations #se "ang#age as a &ay to identify
members of a c#"t#re or s#bc#"t#re. +y "earning this "ang#age, members attest to their
acce!tance of the c#"t#re and , in so doing, he"! to !reserve it.
The fo""o&ing are e<am!"es of termino"ogy #sed by em!"oyees at knight Rider
information, a =a"ifornia based data redistrib#torsF accession n#mber /a n#mber assigned
to each individ#a" record in a database1M 0*1# /a set of key &ords in conte<t1M and
re"ationa" o!erator /searching a database for names or key terms in some order1.
0rgani)ations, over time, often deve"o! #ni$#e terms to describe e$#i!ment, offices, key
!ersonne", s#!!"iers, c#stomers, or !rod#cts that re"ate to its b#siness.
5reating n %thica" :rgani?ationa" 5u"ture
The content and strength of a c#"t#re inf"#ences an organi)ations ethica" c"imate and the
ethica" behavior of its members.
5n organi)ationa" c#"t#re most "ike"y to sha!e high ethica" standards is one thats high in
risk to"erance, "o& to moderate in aggressiveness, and foc#ses on means as &e"" as
o#tcomes. 4anagers in s#ch a c#"t#re are s#!!orted for taking risks and innovating, are
disco#raged from engaging in #nbrid"ed com!etition, and &i"" !ay attention to ho& goa"s
are achieved as &e"" as to &hat goa"s are achieved.
5 strong organi)ationa" c#"t#re &i"" e<ert more inf"#ence on em!"oyees than a &eak one.
If the c#"t#re is strong and s#!!orts high ethica" standards, it sho#"d have a very !o&erf#"
and !ositive inf"#ence on em!"oyee behavior.
Lhat can management do to create a more ethica" c#"t#reN Le s#ggest a combination of
the fo""o&ing !racticesF
Be a "isi2le model: em!"oyees &i"" "ook to to! management behavior as a benchmark for
defining a!!ro!riate behavior. Lhen senior management is seen as taking the ethica" high
road, it !rovides a !ositive message for a"" em!"oyees.
#omm$nicate ethical e-pectations: Cthica" ambig#ities can be minimi)ed by creating
and disseminating an organi)ationa" code of ethics. It sho#"d state the organi)ations
!rimary va"#es and the ethica" r#"es that em!"oyees are e<!ected to fo""o&.
3ro"ide ethical training: set #! seminars, &orksho!s, and simi"ar ethica" training
!rograms. Use these training sessions to reinforce the organi)ations standards of
cond#ctM to c"arify &hat !ractices are not !ermissib"eM and to address !ossib"e ethica"
di"emmas.
4isi2ly re+ard ethical acts and p$nish $nethical ones: !erformance a!!raisa"s of
managers sho#"d inc"#de a !oint by !oint eva"#ation of ho& his or her decisions meas#re
#! against the organi)ations code of ethics.
3ro"ide protecti"e mechanisms: The organi)ation needs to !rovide forma" mechanisms
so that em!"oyees can disc#ss ethica" di"emmas and re!ort #nethica" behavior &itho#t
fear of re!rimand. This might inc"#de creation of ethica" co#nse"ors, omb#dsmen, or
ethica" officers.
5reating 5ustomer -esponsi'e 5u"ture
;rench retai"ers have a &e"" estab"ished re!#tation for indifference to c#stomers. Sa"es
!eo!"e, for instance, ro#tine"y make it c"ear to c#stomers that their !hone conversations
sho#"d not be interr#!ted. @#st getting any he"! at a"" from a sa"es !erson can be a
cha""enge.
4ost organi)ations today are trying very hard to be #n ;rench "ike. They are attem!ting
to create a c#stomer res!onsive c#"t#re beca#se they recogni)e that this is the !ath to
c#stomer res!onsive c#"t#re beca#se they recogni)e that this is the !ath to c#stomer
"oya"ty and "ong term !robabi"ity.
5 revie& of the evidence finds that ha"f a do)en variab"es are ro#tine"y evident in
c#stomer res!onsive c#"t#res.
7irst is the ty!e of em!"oyees themse"ves. S#ccessf#", service oriented organi)ations hire
em!"oyees &ho are o#tgoing and friend"y.
Second is "o& forma"i)ation. Service em!"oyees need to have the freedom to meet
changing c#stomer service re$#irements.
<hird is an e<tension of "o& forma"i)ation its the &ides!read #se of em!o&erment.
Cm!o&ered em!"oyees have the decision discretion to do &hats necessary to !"ease the
c#stomer.
7ourth are good "istening ski""s. Cm!"oyees in c#stomer res!onsive c#"t#res have the
abi"ity to "isten to and #nderstand messages sent by the c#stomer.
7i.th is ro"e c"arity. Service em!"oyees act as ,+o#ndary s!anners. bet&een the
organi)ation and its c#stomers.
In s#mmary, c#stomer res!onsive c#"t#res hire service oriented em!"oyees &ith good
"istening ski""s and the &i""ingness to go beyond the constraints of their 'ob descri!tion to
do &hats necessary to !"ease the c#stomer. It then c"arifies their ro"es, frees them #! to
meet changing c#stomer needs by minimi)ing r#"es and reg#"ations, and !rovides them
&ith &ide range of decision discretion to do their 'ob as they see fit.
*anageria" ction
+ased on the !revio#s"y identified characteristics, &e can s#ggest a n#mber of actions
that management can take if it &ants to make its c#"t#re more c#stomer res!onsive. These
actions are designed to create em!"oyees &ith the com!etence, abi"ity, and &i""ingness to
so"ve c#stomer !rob"ems as they arise.
Se"ection
The !"ace to start in b#i"ding a c#stomer res!onsive c#"t#re is hiring service orientation.
St#dies sho& that friend"iness, enth#siasm, and attentiveness in service em!"oyees
!ositive"y affect c#stomers !erce!tions of services $#a"ity.
<raining and socia"i?ation
0rgani)ations that are trying to become more c#stomer res!onsive dont a"&ays have the
o!tion of hiring a"" ne& em!"oyees more c#stomer foc#sed. In s#ch cases, the em!hasis
&i"" be on training rather than hiring. This describes the di"emma that senior e<ec#tives at
com!anies s#ch as >enera" 4otors, She"" and @.*.
%mpo!erment
=onsistent &ith "o& forma"i)ation is em!o&ering em!"oyees &ith the discretion to make
day to day decisions abo#t 'ob re"ated activities.
Leadership
-eaders convey the organi)ations c#"t#re thro#gh both &hat they say and &hat they do.
Cffective "eaders in c#stomer res!onsive c#"t#res de"iver by conveying a c#stomer
foc#sed vision and demonstrating by their contin#a" behavior that they are committed to
c#stomers.
=er.ormance e'a"uation
There is an im!ressive amo#nt of evidence demonstrating that behavior based
!erformance eva"#ations are consistent &ith im!roved c#stomer service. +ehavior based
eva"#ations a!!raise em!"oyees on the basis of ho& they behave or act on criteria s#ch as
effort, commitment, team &ork, friend"iness, and the abi"ity to so"ve c#stomer !rob"ems
rather than on the meas#rab"e o#tcomes they achieve.
-e!ard systems
;ina""y, if management &ants em!"oyees to give good service, it has to re&ard good
service. It needs to !rovide ongoing recognition to em!"oyees &ho have demonstrated
e<traordinary effort to !"ease c#stomers and &ho have been sing"ed o#t by c#stomers for
going the e<tra mi"e. 5nd it needs to make !ay and !romotions contingent on o#tstanding
c#stomer service.
SWOT analysis of Brasal branch
Cvery organi)ation is com!osed of some interna" strength and &eakness and a"so has
some e<terna" o!!ort#nity and threats in its &ho"e "ife cyc"e. The fo""o&ing &i"" brief"y
introd#ce the a#dience to the strength , &eakness, o!!ort#nity and threats as I have
e<!"ored in the !ast t&e"ve &eak.
Strength
Superior @ua"ityA
+arisa" branch !rovides its c#stomers e<ce""ent and consistent $#a"ity in every service. It
is of highest !riority that c#stomer is tota""y satisfied.
3ynamic
+ranch dra&s its strength from the ada!tabi"ity and dynamism it !osses. It can $#ick"y
ada!ted to &or"d c"ass standard in terms of banking services. +ranch has a"so ada!ted
state of the art techno"ogy to connect &ith the &or"d for better comm#nication to
integrate faci"ities.
7inancia" strength:
+ank is financia""y so#nd backed by enormo#s reso#rces base of the foreign e<change
b#siness, as a res#"t c#stomers fee" comfortab"e in dea"ing &ith the bank.
Cfficient managementF
5"" the "eve" of the management are so"e"y directed to maintain a c#"t#re for the
betterment of $#a"ity of service and deve"o!ment a brand image in the market thro#gh
organi)ation &ide team a!!roach and o!en comm#nication system.
State o. art techno"ogyA
+ranch is e$#i!!ed com!#ter techno"ogy for s&ift de"ivery of services.
%&pertise
+ranch em!"oyees are high"y trained and most com!etent in their o&n fie"d. +ank
!rovides their em!"oyees both in7ho#se and o#t of 'ob training.
;n1house uti"ity
+ranch is free from the ever7 disr#!tive !o&er s#!!"y of !#b"ic so#rces. The re$#ired
!o&er is generated by the bank thro#gh generator fed on diese".
%&ce""ent !orking en'ironment
+ranch !rovides its &ork force an e<ce""ent !"ace to &ork in. the interior decoration &as
done e<$#isite"y &ith the choice of soothing co"ors and b"end of artist that is com!arab"e
to any !rivate bank.
Beakness
Limited !ork.orce
+arisa" branch has very "imited reso#rces com!ared to its financia" activities. There are
not many !eo!"e to !erform most of the tasks. 5s a res#"t many of the em!"oyees are
b#rdened &ith e<tra &ork "oads and &orks "ate ho#rs &itho#t any overtime faci"ities. This
might ca#se high em!"oyee t#rnover that &i"" !rove to be cost"y to avoid.
=rob"em in de"i'ery
The branch sti"" have not introd#ce ,money. ,!ersona" credit , to its c"ients d#e not
!ro!er initiation from the management . these !rod#cts can easi"y be made avai"ab"e in
attractive &ay to increase its c"ients base as &e"" as its de!osits stat#s.
:pportunities
0o'ernment support
>overnment of +ang"adesh has rendered its f#"" s#!!ort to this bank for a so#nd financia"
stat#s of the co#ntry, as it is becoming one of the vita" so#rce of em!"oyment in the
co#ntry. S#ch government &i"" faci"itates and s#!!ort the "ong7term vision for the bank.
%1 commerce
branch a"so have e7commerce faci"ities for its c"ients both in home and abroad . it &i""
faci"ities &ide area net&ork in bet&een the b#yer and the bank and smooth o!eration to
meet the desired needs &ith "east deviation.
<hreats
*erger and ac@uisition
The &or"d &ide trend of merger and ac$#isition in financia" instit#tion is ca#sing
concentration the ind#stry and com!etitor are increasing in !o&er in their res!ective
areas.
=oor te"ecommunication in.rastructure
Uttara bank comm#nication techno"ogy is not so high 1AB branch scattered a"" over
+ang"adesh, &here as &or"d is advancing to&ards e7techno"ogy.
7re@uent currency de'a"uation
;re$#ent taka deva"#ation and foreign e<change rate f"#ct#ations adverse"y effect on
foreign e<change b#siness.
%mergence o. competition
D#e to e<istence of #nreserved demand in financia" sector, it is e<!ected that more
financia" instit#tion &i"" be introd#ce in the ind#stry very short"y.
Ca"ues that are to be considered as guiding .act
5"" the activities of Uttara bank are g#ided based on added va"#e for c#stomers. These are
*"acing the interest of c"ients and c#stomer first
5 contin#es $#est for $#a"ity in everything the bank does.
Treating everyone &ith res!ect and dignity.
=ond#ct and ref"ects the highest standards of integrity.
Team &ork from the sma""est #nit to enter!rise as a &ho"e.
+eing good citi)en in the comm#nities in &hich they "ive and &ork.
S!ecia" care is given for big !arties if com!"ain .
*hat is 2anking ser"ices5
+anking services means any government bank, foreign or "oca" commercia" banks or any
financia" instit#tions or cor!oration &ho !rovide banking services thro#gh "oans, bank
g#arantee, demand draft, !ay order, T.T, 4T etc. in consideration of bank charges.
-o"e o. banking in modern economy
The ro"e of banking in modern economy is #n"imited. +anks he"! in ca!ita" formation,
savings, investment, safe"y money transfer to home I abroad, !rovides "oans I advance
for vario#s ends to c"ients. S!ecia""y im!orts and e<!orts b#siness are &ho""y de!ends on
banks . &ho"e deve"o!ment of a co#ntry de!end on banking system. +ank give "oans to
&eak ind#stry, #ndertake risk of im!ort and e<!ort , safe"y transfer money . Th#s he"! in
deve"o!ment of a co#ntry.
+anking and finance are the =entre of a"" economic activities
<heoretica" considerations o. customer banks pre.erences
+anking b#siness is very com!etitive in a free market economy. 5t !resent there are a
"arge n#mber of "oca" and foreign banks avai"ab"e for c#stomer services. They are in a
o!en com!etition &ho can attract ma<im#m c#stomer and gain ma<im#m !rofits. Cvery
bank &ants to !rovides ma<im#m c#stomer service and a &ide range of services than
com!etitors. +anks needs of marketing strategy to s#rvive in t#rb#"ence b#siness
environment. They have to em!hasi)ed on c#stomer service, $#a"ity, cost of services ,
services de"ivery in a short time, modern techno"ogy, ne& services that are not imitated
by com!etitors. They have to em!hasis on benchmarking, TG4, 5 bank have to
em!hasis on c#stomer choice ,!references, attit#des in a changing environment.
*:3%L
mode" o. customer pre.erences of banking services de!ending on the fo""o&ing
factors that are sho&s as fo""o&s
Statement o. the prob"em
Lhat sho#"d the branch do to increase its !rofits and maintain is gro&th .
Lhat is the c#rrent satisfaction of c#stomers to the branch service "eve".
Lhat is the "eve" of em!"oyee satisfaction to the branch.
Lhat is the trends of branch !rofit, and gro&th.
Lhat is the !reference of the c#stomer to the branch.
Statistica" too"s and techni@ues
Data &ere ana"ysis tro#gh different statistica" techni$#es s#ch as fre$#ency distrib#tion,
chart , histogram, re"ative fre$#ency distrib#tions. =#stomer attit#des and !references of
bank &ere meas#red thro#gh !ercentage range from 0O to 100O. ;or f#t#re
im!rovement of branch services c#stomer recommendation &as take on average .

Limitation
This re!ort may have some incom!"eteness d#e to some of the "imitation I enco#ntered
&hi"e com!"eting it that are mentioned be"o&F
3 one ma'or "imitation &as time constraint. This re!ort co#"d easi"y have been
!re!ared in a m#ch broader and e<tensive manner &ith more time and s!ace
avai"abi"ity.
4 Some essentia" data co#"d not be gathered beca#se of confidentia"ity concern. The
ra& data avai"ab"e in the organi)ation database system, different re!orts, statement
&ere a"so not organi)ed.
5 I co#"d not visit the difference branches of Uttara bank and had to de!end on +arisa"
branch for a"" information for !re!aring re!ort.
6 5nother "imitation &as data gathered co#"d not be verified for acc#racy d#e to time
"imitation.
7 5s there are not any re!ort, "iterat#re, !#b"ication on the !ast so co""ection of
different data may not &ho""y re!resentative.
8 D#e to #se of difference of sam!"e information may differ.
General Banking
*eeting day to day Banking
>enera" +anking De!artment #s#a""y !erforms a "ot of im!ortant banking activities.
>enera" banking de!artment is that de!artment &hich is most"y e<!osed to the ma<im#m
n#mber of bank c#stomers. It is the introd#ctory de!artment of the bank to its c#stomers.
5"" b#siness concerns earn a !rofit thro#gh se""ing either a !rod#ct or a service. 5 bank
does not !rod#ce any tangib"e !rod#ct to se"" b#t does offer a variety of financia" services
to its c#stomers. The +arisa" branch of U+- has a"" the re$#ired sections of genera"
banking and these sections are r#n by man!o&er &ith high $#a"ity banking kno&"edge.
%ence, a to#ch of rich c#stomer service is !revai"ing in the branch.
In U+- the fo""o&ing de!artments are #nder genera" banking sectionF
/a1 5cco#nt o!ening de!artment.
/b1 -oca" remittance de!artment.
/c1 =ash de!artment.
/d1 ="earing de!artment.
/e1 =o""ection de!artment.
In the fo""o&ing =ha!ters brief disc#ssion on the above de!artments are !resented
res!ective"y.
(A) Account Opening epart!ent
5ommunication !ith the 5"ient
The re"ationshi! bet&een a banker and his c#stomer begins &ith the o!ening of an
acco#nt by the former in the name of the "atter. Initia""y a"" the acco#nts are o!ened &ith a
de!osit of money by the c#stomer and hence these acco#nts are ca""ed de!osits acco#nts.
+anker so"icits de!osits from the members of the !#b"ic be"onging to different &a"ks of
"ife, engaged in n#mero#s economic activities and having different financia" stat#s. There
is one officer !erforming vario#s f#nctions in this de!artment.
7unctions o. the 3epartment
The fo""o&ing are the main f#nctions !erformed by the de!artmentF
/i1 5cce!ting of De!osit
/ii1 0!ening of 5cco#nt
/iii1 =heck +ook iss#e
/iv1 Transfer of an 5cco#nt
9 ="osing of 5cco#nt
ccepting o. 3eposits
De!osits are "ife7b"ood of a commercia" bank. Litho#t de!osits there are no b#sinesses
for the commercia" banks of any nat#re /2=+s, *=+s or ;=+s1. In this branch the
vario#s ty!es of acco#nts are offered to vario#s c#stomers, &hich are gro#!ed intoF
10 Demand de!osit acco#nt.
11 Time de!osit acco#nt.
3emand 3eposit ccount
The amo#nt in acco#nts are !ayab"e on demand so it is ca""ed demand de!osit acco#nt.
The fo""o&ing acco#nts are #nder demand de!osit acco#ntsF
12 =#rrent acco#nt.
13 Savings acco#nt.
14 Short 2otice Term De!osit /STD1.
1. 5urrent account:
This ty!e of acco#nt is o!ened by both individ#a"s and b#siness concerns. ;re$#ent
transactions /de!osits as &e"" as &ithdra&a"1 are a""o&ed in this ty!e of acco#nt. 5
c#rrent aHc ho"der can dra& checks on his acco#nt for any amo#nt for any n#mbers of
times in a day as the ba"ance in his acco#nt !ermits. This acco#nt !rovides no interest.
The minim#m ba"ance to be maintained is Tk. 2000. 2o ne& acco#nt can be o!ened
&ith a check.
$. Sa'ings ccount
Individ#a"s for savings !#r!oses o!en this ty!e of acco#nt. =#rrent Interest rate of these
acco#nts is D.D0 O !er ann#m. 5 minim#m ba"ance of Tk. 1000 is re$#ired to be
maintained in a S+ acco#nt interest on S+ acco#nt is ca"c#"ated and accr#ed month"y and
credited to the acco#nt ha"f year"y. Interest ca"c#"ation is made for each month on the
basis of the "o&est ba"ance at credit of an acco#nt in that month. 5 de!ositor can
&ithdra& from his S+ acco#nt not more than t&ice a &eek #! to an amo#nt not
e<ceeding 2DO of the ba"ance in the acco#nt.
). Specia" Notice <erm 3eposit 8S<39:
The de!osits in this acco#nt are &ithdra&a" on !rior notice varying from 9 to 2A days and
30 days or more. The interest is !aid on the ba"ance of the acco#nt. =#rrent interest rate is
6.D0O !er ann#m.
:pening =rocedure
;or o!ening s#ch 5H=, a!!"ication in the !rescribed form a"ong &ith a set of s!ecimen
signat#re d#"y verified by +ang"adesh mission abroad or by a re!#tab"e bank of any other
!erson kno&n to the bank, sho#"d be obtained by the brandies. In case of !ersons, a"ready
maintain any ;.= 5H= or 2.;.=.D. 5H= &ith them, reference to that ;.= 5H= &i"" serve,
the !#r!ose of introd#ction, the branch may verify the signat#re from the s!ecimen
signat#re and a"ready avai"ab"e &ith them. 0n"y one s#ch ;.= 5H= can be maintained
and the ba"ance in the 5H = sho#"d not e<ceed P 30.000H7 or e$#iva"ent !o#nd ster"ing at
any one time. The 5H= ho"der is a"so re$#ired to s#bmit !hotoco!ies of !ass!ort, visa,
and &ork !ermitHcontract. 5s this is a c#rrent acco#nt no Interest is !aid to the 5H=
ho"der.
<ime 3eposit ccount
The amo#nt in this aHc is !ayab"e on"y after sti!#"ated time. The fo""o&ing aHcs are #nder
time de!osit aHcF
15 ;i<ed De!osits &hich are re!ayab"e after the e<!iry of fi<ed !eriod
and are negotiab"e.
16 +earer =ertificate of De!osits /+=D1 ,&hich are re!ayab"e after
e<!iry of fi<ed !eriod
b#t are negotiab"e. These are not rene&ab"e.
17 2on7resident ;oreign =#rrency de!osits are term de!osits
mat#ring after 1 month, 3months, 6months and 1 year. This aHcs
can be o!ened either in U.S. do""ar or !o#nd ster"ing. 2o interest is
!aid in case of !remat#re encashment.
7i&ed 3eposit ccount
These are de!osit, &hich are made &ith the bank for a fi<ed !eriod s!ecified in
advance. The band need not maintain each reserve against these de!osits and
therefore, bank gives high rate of interest on s#ch de!osits. 5 ;DR is iss#ed to the
de!ositor ackno&"edging recei!t of the s#m of money mentioned therein. It a"so
contains the rate of interest and the date on &hich the de!osit &i"" fa"" d#e for
!ayment.
=articu"ars -ate o. ;nterest
;nterest -ate on 3eposits:
Savings De!osits
S!ecia" 2otice De!osits/STD1
D.D0O
6.D0O
7i&ed 3eposit8<ime 3eposits9
3 /three 1 4onths
6 /si<14onths
1/one1 6ear
2/t&o1 6ears and above
3/three1 years
9.00O
9.D0O
B.00O
B.2DO
B.2DO
Table: Interest rate on deposits
Openin& of A""ount
It inc"#des the fo""o&ing stagesF
18 A%%ount o(nin* (ro%dur
19 'la!!ifi%ation of %u!tomr!
1) Account opening procedure
3ocuments needed .or each ccounts Separate"y:
5urrentDSa'ing 3eposit ccounts:
1. Sa'ings ccounts:
1. 5n e<isting =#rrent 5cco#nt ho"der of the +ank,
2. -hoto%o(y of -a!!(ort . 'hairman.'onditionr
'rtifi%at!.
&. /"o 021 %o(id of -a!!(ort !i, (hoto*ra(h.
$.5urrent ccount:
=roprietorship 7irm:
20 2ame of a#thori)ed !ersons, designation, s!ecimen, signat#re
=ard.
21 Trade -icense.
22 *ass!ortH =hairman =ertificate.
=artnership 7irm:
23 5cco#nt m#st be o!ened in the name of the firm.
24 The form sho#"d describe the names and addresses of a"" the
!artners.
25 Trade -icense from city cor!. is needed.
26 *artnershi! Deed.
27 -etter of a#thority is achieved
Limited 5ompany:
28 =ertificate of incor!oration.
29 =ertificate of =ommencement of +#siness.
30 ;orm QII.
31 4emorand#m of 5ssociation.
32 5rtic"e of 5ssociation.
33 *o&er of attorney.
34 Reso"#tion of the +oard of Director s a#thori)ing o!ening of an
acco#nt.
SocietiesD5"ubDssociations:
0ther than above mentioned common doc#ments reso"#tion of &ho
&i"" o!erate the acco#nt m#st be noted.

Fig: Flow Chart of Account Opening Procedure
2) Classification of customers
It inc"#des the fo""o&ingF
a1 Individ#a" /!ersona"1
b1 *ro!rietorshi! /So"e traders1
c1 *artnershi! firms /Registered or Unregistered1
35 @oint stock =om!anies /*rivate -imited com!aniesH*#b"ic "td.1
e1 *#b"ic Sector =or!orations
f1 4#nici!a"itiesH4#nici!a" =or!orations H-oca" +odies etc.
g1 ="#bsHSocietiesH5ssociationsHSchoo"sH=o""egesH Universities etc.
h1 C<ec#torsH5dministrators
i1 Tr#stees
'1 I""iterate !ersons
k1 =onstit#ted 5ttorney
"1 Lage Carners.
*ssue of /$e0ue Boo-
A) Issue of Fresh Check book
;resh checkbook is iss#ed to the acco#nt ho"der on"y against re$#isition on the !rescribed
re$#isition s"i! attached &ith the checkbook iss#ed ear"ier, after !ro!er verification of the
signat#re of the acco#nt ho"der !ersona""y or to his d#"y a#thori)ed re!resentative against
!ro!er ackno&"edgment.
Figure: Issuance of fresh Check Book
B Issue of !uplicate check book
D#!"icate checkbook in "ie# of "ost one sho#"d be iss#ed on"y &hen an 5H= ho"der
!ersona""y a!!roaches the +ank &ith an a!!"ication -etter of Indemnity in the !rescribed
*erforma agreeing to indemnify the +ank for the "ost checkbook. ;resh check +ook in
"ie# of "ost one sho#"d be iss#ed after verification of the signat#re of the 5cco#nt ho"der
from the S!ecimen signat#re card and on rea"i)ation of re$#ired C<cise d#ty on"y &ith
!rior a!!rova" of manager of the branch. =heck series n#mber of the ne& checkbook
sho#"d be recorded in "edger card signat#re card as #s#a". Series n#mber of "ost
checkbook sho#"d be recorded in the sto! !ayment register and ca#tion sho#"d be
e<ercised to g#ard against fra#d#"ent !ayment.
A""ount Transfer
The c#stomer s#bmits an a!!"ication mentioning the name of the branch to &hich
he &ants the acco#nt to be transferred. %is signat#re cards, advice of ne& acco#nt
and a"" re"evant doc#ments are sent to that branch thro#gh registered !ost &ith
ackno&"edgment the ba"ance standing at credit in c#stomers acco#nt is sent to the
other branch thro#gh Inter +ranch =redit 5dvice /I+=51.
/%osin& of A""ount
The fo""o&ing circ#mstances are #s#a""y considered in case of c"osing an acco#nt or
'#stifying the sto!!age of the o!eration of an acco#nt F
Noti% *ivn 2y th %u!tomr him!lf or if th %u!tomr i! d!irou!
to %lo! th a%%ount.
Dath of th %u!tomr.
'u!tomr3! in!anity and in!olvn%y.
If th 2ran%h find! that th a%%ount i! ino(rativ for a lon* (riod.
If +arni!h 4rdr i! i!!ud 2y th 'ourt of )a" on th 2an$
2ran%h.
5 c#stomer can c"ose o#t his 5H= at any time by s#bmitting an a!!"ication to the branch.
U!on the re$#est of a c#stomer an acco#nt can be c"osed. 5fter receiving an a!!"ication
from the c#stomer to c"ose an 5cco#nt, the fo""o&ing !roced#re is fo""o&ed by a banker.
The c#stomer sho#"d be asked to dra& the fina" che$#e for the amo#nt standing to the
credit of his aHc "ess the amo#nt of c"osing and other incidenta" charges and s#rrender the
#n#sed che$#e "eaves. The aHc sho#"d be debited for the acco#nt c"osing charges etc. and
an a#thori)ed officer of the +ank sho#"d destroy #n#sed che$#e "eaves. In case of 'oint
aHc the a!!"ication for c"osing the aHc is to be signed by a"" the 'oint ho"ders even if the
5H=7 is o!erate by either of them. The "ast check for &ithdra&a" of the avai"ab"e ba"ance
in the 5H= is to be signed by a"" the 'oint ho"ders.
Local "emittance !epartment
Banking .or 5ommon =eop"e
U+- has its branches s!read thro#gho#t the co#ntry and therefore, it serves as best
medi#ms for remittance of f#nds from one !"ace to another. This service is avai"ab"e to
both c#stomers and non7c#stomers of the bank. The de!artment, &hich !rovides the
faci"ity, is kno&n as "oca" remittance de!artment.
Fun"tions of t$e +o"a% )emittan"e ,epartment
The fo""o&ing are the main f#nctions !erformed by the credit de!artmentF
/a1 Iss#ing I *ayment of Demand Draft.
/b1 5"" re"ated corres!ondence &ith other +ranches I +anks
/c1 =om!"iance of 5#dit I Ins!ection
/d1 +a"ance of D.D. !ayab"e I D.D. *aid &ith advice
/e1 5ttached to Sanchaya *atra and Lage Carners Deve"o!ment
+onds.
/f1 *ayment of Incoming TT.
/g1 Iss#ing, encashment of *ay 0rder and maintenance of record and
!roof sheet.
/h1 Iss#ing and encashment of a"" kinds of Sanchaya *atras and &age
Carners Deve"o!ment +ond.
/i1 5"" re"ated statements I corres!ondences &ith +ang"adesh +ank I
other +ranches.
/'1 Iss#ance of -oca" Drafts
/k1 Iss#ing and encashment of +=D.
/"1 5"" re"ated corres!ondences.
/m1Iss#ing of 0#tgoing TT.
/n1 Iss#ance of -oca" Drafts.
/o1 Iss#ance of T.T. I=5. I+=5 I I+D5.
<ransaction <ypes
Name o. <ransaction <ransaction 5ode
+ank Draft 1
4ai" Transfer/4.T1 3
T.T :
+.=s 6
S.=s 9
=ash Remittances B
S#ndries A
%ead 0ffice Transaction 10
;oreign C<change Transaction 12
Reversing I =ance""ation 29
5o""ection o. 5he@ue
36 U! to T?. 2D,000 R .1DO, 4inim#m T?. 10.
37 5bove Tk.2D,0007 1,00,000, R .1DO 4inim#m Tk.D0.
38 5bove 1,00,0007D,00,000 R .10O, 4inim#m Tk.1D0.
39 5bove D,00,000 R .0DO, 4inim#m Tk.60074a<im#m
1,200
3ank 5harge 7or ;ssuing 33
R .1DO 4inim#m Tk. 2D.
5ance""ation o. 33
U! to 10007777777777777777777777777Tk.2D.
5bove 1000777777777777777777777777Tk.:0.
=ayment :rder
U! to Tk. 1000777777777777777777777777Tk.10.
1,00071,00,000 7777777777777777777777777Tk.2D.
1,00,0007D,00,0007777777777777777777777Tk.D0.
5bove Tk.D,00,00077777777777777777777Tk.100.
5ance""ation o. =ay order
U! to Tk. D0077777777777777Tk.10.
5bove Tk. D007777777777777Tk.2D.
-ate o. 0o't. %&cise 3uty .or a .inancia" year8 %..ecti'e .rom /11/+1/)9
Tk.10,0007777777777777777777777777777777777777Tk.0
Tk.10,00071,00,00077777777777777777777777777Tk.120.
Tk.1,00,000710,00,0007777777777777777777777Tk.2D0.
Tk.10,00,00071,000,000777777777777777777777Tk.DD0.
Tk.1,000,0007D,000,000777777777777777777777Tk.2D00.
5bove Tk.D,000,0007777777777777777777777777Tk.D000.
)emittan"e of Fund
5ny one of the fo""o&ing methods may make remittance of f#nds from one !"ace to
another.
40 Te"egra!hic Transfer /T.T1
41 Demand Draft /D.D1
42 *ay order /*H01
43 #elegraphic #ransfer $##)
It is an order from the Iss#ing branch to the Dra&ee +ank H+ranch for
!ayment of a certain s#m of money to the beneficiary. Te"e<H Te"egram sends
the !ayment instr#ction and f#nds are !aid to the beneficiary thro#gh his
acco#nt maintained &ith the Dra&ee branch or thro#gh a !ay order if no aHc
is maintained &ith the dra&ee branch.
a9 <.< ;ssue =rocess:
1. The 5!!"icant fi"" #! the re"evant !art of the !rescribed 5!!"ication
form in tri!"icate d#"y signs the same and gives it to the
Remittance De!artment.
2. Remittance De!artment &i"" fi"" #! the commission !art meant for
+ankJs #se and re$#est the 5!!"icant to de!osit necessary cash or
check at the Te""erJs =o#nter.
3. The Te""er after !rocessing the 5!!"ication form, =ash or check
&i"" va"idate the 5!!"ication form .The first co!y is treated as
Debit Ticket &hi"e the second co!y is treated as =redit Ticket and
sent to Remittance De!artment for f#rther !rocessing. The third
co!y is handed over to the a!!"icant as c#stomers co!y.
:. Remittance De!artment &i"" !re!are the Te"e<HTe"egram in
a!!ro!riate form, sign it and send it to the te"e< 0!eratorHDis!atch
De!artment for transmission of the message.
D. Remittance De!artment &i"" !re!are the necessary advice
6. Debit 5dvice is sent to the c"ient if c"ients aHc is debited for the
amo#nt of T.T
9. Debit ticket is #sed to debit the c"ientJs acco#nt if necessary.
B. T.T =onfirmation 5dvice is sent to the Dra&ee +ranch.
A. =redit Ticket /2nd co!y of the 5!!"ication ;orm1 is #sed to credit
the U+- >enera" 5cco#nts.
b9 ccounting %ntry
Dr. =ash Hc"ientJs 5H=
=r. U+- >enera" 5H=
=r. =omm#nication.
'r. 'ommi!!ion.
c. =ayment o. <. <Es:
44 0n recei!t of T.T !ayment Instr#ctions the fo""o&ing entries are !assed by
the Dra&ee branch if the T.T is fo#nd to be correct on verification of Test
2#mber.
i. Dr. U+- >enera" 5Hc
=r. Remittance 5&aiting Dis!osa"7 T.T *ayab"e 5Hc
ii. Dr. Remittances 5&aiting Dis!osa" 7T.T *ayab"e 5Hc
=r. c"ientJs 5cco#nt H*.0. 5H=.
In case the beneficiary does not maintain any aHc &ith the Dra&ee branch
a *.0 is iss#ed in favor of the !ayee and sent to his bankerH"oca" address as
the case may be.
45 Cvery branch maintains a !rescribed T.T. *ayab"e Register. 5"" the
!artic#"ars of T.Ts are to be !ro!er"y recorded in this Register d#"y
a#thenticated. 5 se!arate ty!e of T.T confirmatory advice is sent to the
Dra&ee branch on the same day. 0n recei!t of the T.T =onfirmatory
adviceH confirmation co!y of Te"egram from the Iss#ing branch, the
!artic#"ars of the T.T are verified &ith reference to !artic#"ars a"ready
recorded in the T.T !ayab"e Register.
The =onfirmatory advises are ke!t attached &ith the re"ative Ticket 2o f#rther
res!onding entry is re$#ired to be !assed on recei!t of s#ch confirmation co!y. 0n
!ayment of T.T the !artic#"ars are to be incor!orated in the C<tracts of Res!onding Debit
entries as #s#a" and sent to %0R=.
2) !emand !raft $!!)
-oca" Draft is an instr#ment containing an order of the Iss#ing branch #!on another
branch kno&n as Dra&ee branch, for !ayment of a certain s#m of money to the !ayee or
to his order on demand by the beneficiary !resenting the draft itse"f.
7ig : 7"o! 5hart .or a 33
a. =rocess o. ;ssuing a 3emand 3ra.t:
1. >et the 5!!"ication form !ro!er"y fi""ed #! and signed by the
a!!"icant.
2. =om!"ete the "o&er !ortion of the 5!!"ication ;orm meant for +ankJs
#se.
3. =a"c#"ate the tota" Taka amo#nt !ayab"e inc"#ding +ankJs
commission Hcharges etc.
:. If a che$#e is !resented for the !ayment of the D.D officer sho#"d get
the check d#"y !assed for !ayment by the com!etent a#thority and
record the !artic#"ars of D.D on the back of the che$#e.
D. If the !#rchaser desires his acco#nt &ith the branch to be debited for
the amo#nt of D.D the officer sho#"d get the 5H=. ho"ders signat#re
verified !ro!er"y, from signat#re card on record of the branch and
debit c"ientJs aHc for the tota" amo#nt inc"#ding commissionH charges
etc.
6. If cash de!osit is desired, re$#est the !#rchaser to de!osit the money at
the Te""ers =o#nter.
9. The Te""er, after !rocessing the 5!!"ication ;orm, =ash or =he$#e,
&i"" va"idate the 5!!"ication form.
46 The first co!y of the 5!!"ication form is treated as Debit Ticket &hi"e
the second co!y is treated as =redit Ticket and sent to Remittance
De!artment for f#rther !rocessing. The third co!y is handed over to
the 5!!"icant as c#stomerJs co!y.
47 Cach branch maintains a r#nning contro" seria" n#mber of their o&n
for iss#ance of D. D. on each Dra&ee branch. This contro" seria"
n#mber sho#"d be introd#ced at the beginning of each year, &hich &i""
contin#e ti"" the end of the year.
b. 3.3 ;ssue -egister:
The Remittance De!artment maintains !rescribed D.D Iss#e Register. 5"" the re$#ired
!artic#"ars of a"" D. Ds iss#ed sho#"d be entered in that Register d#"y a#thenticated.
Se!arate fo"ios are o!ened for each Dra&ee +ranch. Lhi"e iss#ing "oca" Drafts of T?.D0,
000H7 and above, branches sha"" !#t a test n#mber in RCD I2? on the #!!er !ortion of
the drafts so that the Dra&ee branch can immediate"y make !ayment of the D.D on
!resentation after getting the Test agreed, if other&ise fo#nd in order.
c. ;ssue o. 3up"icate 3ra.t :
D#!"icate D.D sho#"d not norma""y be iss#ed #n"ess thoro#gh"y satisfactory evidence is
!rod#ced regarding "oss of a draft. If the D.D is re!orted "ostHsto"en, a d#!"icate draft may
be iss#ed by the Iss#ing branch on recei!t of a &ritten re$#est from the !#rchase.
d. 5ance""ation o. 3emand 3ra.t 8339:
The fo""o&ing !roced#re sho#"d be fo""o&ed for cance""ation of a D.DF
1. The !#rchase sho#"d s#bmit a &ritten re$#est for cance""ation of the D.D
attaching there&ith the origina" D.D.
2. The signat#re of the !#rchase &i"" have to be verified from the origina"
a!!"ication form on record.
3. 4anager HS#b 74anagerJs !rior !ermission is to be obtained before
ref#nding the amo#nt on cance""ation.
:. *rescribed cance""ation charge is to be recovered from the a!!"icant and
on"y the amo#nt of the draft "ess cance""ation charge sho#"d be ref#nded.
=ommissionH*ostage etc. charge recovered for iss#ing the D.D sho#"d not
be ref#nded.
D. The D.D sho#"d be affi<ed &ith a stam! =ance""ed #nder !ro!er
a#thentication and the a#thori)ed officerJs signat#re on the D.D sho#"d
a"so be cance""ed &ith Red in b#t in no case sho#"d be torn. The cance""ed
D.D sho#"d then be ke!t &ith the re"evant Ticket.
6. The origina" entries are to be reversed giving !ro!er narration. 5n I+D5
for the cance""ed D.D sho#"d be iss#ed on the Dra&ee branch.
48 =ance""ation of the D.D sho#"d a"so be recorded in the D.D Iss#e Register.
e. =ayment o. 3.3:
1. 0n recei!t of =redit 5dvice /I+=51 from the Iss#ing branch the fo""o&ing
res!onding entries are then be !assed by the Dra&ee branch.
Dr. U+- >enera" 5Hc +ranch
=r. Remittance 5&aiting Dis!osa" D.D !ayab"e 5Hc
C<tracts of Res!onding entries are to be sent to %0R= on the same day.
49 Lhen a D.D is !resented for !ayment at the !aying branch its detai"s are
to be caref#""y e<amined &ith references to the fo""o&ing !ointsF
a. Lhether the draft is dra&n on their branch.
b. Lhether the draft is crossed or not 5mo#nt of a crossed draft is not
!aid in cash to the !ayee b#t to be !aid to his acco#nt &ith a bank.
c. T&o a#thori)ed officia"s of the Iss#ing branch m#st have signed
draft. Their signat#res are to be verified from s!ecimen signat#re
book "et to be s#re that the draft is gen#ine. The verifier sho#"d !#t
his initia"s in red ink against the a#thori)ed signat#res in the draft.
d. Cndorsement on the back of the draft m#st be reg#"ar in case the
draft is !resented thro#gh c"earing.
e. The amo#nt of the draft sho#"d not e<ceed the amo#nt !rotect
gra!hed H&ritten in red ink on the to! of the draft.
f. The !ayee is to be !ro!er"y identified in case of cash !ayment.
50 The !artic#"ars of the draft i.e. the draft n#mber date amo#nt and
the name of !ayee, sho#"d be verified from the D.D !ayab"e
Register.
3. 0n !ayment the D.D is affi<ed &ith the branches *aid stam! and
signat#res there on are cance""ed &ith red ink. The date of !ayment is
recorded in the D.D !ayab"e Register necessary acco#nting entries are a"so
!assed and recorded in the books of 5cco#nts




Fig : Flow Chart of DD Payent
.. ccounting %ntries:
Lith I+=5F
Dr. Remittance 5&aiting Dis!osa" D.D !ayab"e aHc
=r. c"ientJs 5cco#ntHTe""erJs =ash.
Litho#t I+=5F
5.. Dr. D.D !aid &itho#t 5dvice aHc
=r. ="ientJs aHcHTe""erJs =ash.
+. 5fter receiving the I+=5
I. Dr. U+- >enera" 5Hc
=r. Remittances 5&aiting Dis!osa" 7 D.D !ayab"e 5Hc
ii. Dr. Remittances 5&aiting Dis!osa" 7 D.D !ayab"e 5Hc
=r. D.D *aid &itho#t 5dvice 5Hc.
31 Pay Order
a. =ay :rder ;ssue =rocess:
;or iss#ing a !ay order the c"ient is to s#bmit an 5!!"ication to the Remittance
De!artment in the !rescribed form /in tri!"icate1 !ro!er"y fi""ed #! and d#"y signed by
a!!"icant. The !rocessing of the !ay order 5!!"ication form, de!osit of cashHche$#e at the
Te""erJs co#nter and fina""y iss#ing an order etc, are simi"ar to those of !rocessing of D.D.
5!!"ication.
5s in case of D.D each branch sho#"d #se a r#nning contro" seria" n#mber of their o&n
for iss#ance of a !ay order. This contro" seria" n#mber sho#"d be introd#ced at the
beginning of each year, &hich &i"" contin#e ti"" the end of the year. 5 fresh n#mber
sho#"d be introd#ced at the beginning of the ne<t ca"endar year and so on.
b. 5harges:
;or iss#ing each !ay 0rder commission at the rate !rescribed by %ead 0ffice is rea"i)ed
from the c"ient and credited to Income 5Hc as #s#a".
c. %ntries:
Dr. Te""erJs =ash H="ientJs aHc
777777777777777777777777777777777777777777777777777777777Debit
=r. !ay 0rder aHc. 7777777777777777777777777777777777777777777777777777777777777777777777
=redit
=r. commission aHc.
77777777777777777777777777777777777777777777777777777777777777777777=redit
d. -e.und o. =ay :rder:
The fo""o&ing !roced#re sho#"d be fo""o&ed for ref#nd of !ay order by cance""ationF
1. The !#rchase sho#"d s#bmit a &ritten re$#est for ref#nd of !ay order by
cance""ation attaching there&ith the origina" !ay order.
2. The signat#re of the !#rchaser &i"" have to be verified from the origina"
a!!"ication form on record.
3. 4anagerH S#b7managerJs !rior !ermission is to be obtained before
ref#nding the amo#nt of !ay order cance""ation.
:. *rescribed cance""ation charge is to be recovered from the a!!"icant and
on"y the amo#nt of the !ay order "ess cance""ation charge sho#"d be
ref#nded. =ommission recorded for iss#ing the !ay order sho#"d not be
ref#nded.
D. The !ay order sho#"d be affi<ed &ith a stam! JJcance""edJJ #nder !ro!er
a#thentication and the a#thori)ed officerJs signat#re of the !ay order sho#"d
a"so be cance""ed &ith RCD ink b#t in no case sho#"d be torn. The cance""ed
!ay order sho#"d be ke!t &ith the re"evant Ticket.
51 The origina" entries are to be reversed &ith !ro!er narrations
52 =ance""ation of the !ay 0rder sho#"d a"so be recorded in the !ay order
Iss#e Register.
Cash Department
7ront :..ice :peration
The cash de!artment dea"s &ith a"" ty!es of negotiab"e instr#ments, cash, and other
instr#ments and treated as a sensitive section of the bank. 2o& a day in modern banking
cash de!artment is a"so kno&n as front office.
Fun"tions of t$e ,epartment
The fo""o&ing are the main f#nctions !erformed by the de!artmentF
/a1 Sha"" be res!onsib"e for a"" =ash I =ash Items re"ated matters inc"#ding
record kee!ing of the informations received regarding cash remittances
/b1 Sha"" s#!ervise the =ash Remittance #nder direct g#idance of S#b7
4anager
/c1 Sha"" be res!onsib"e for any recei!ts and !ayments as !er circ#"ar iss#ed
from time to time.
/d1 ?ee!ing "iaison &ith the +ang"adesh +ank, =ash de!artment.
/as$ Payment
=ash !ayment of different instr#ments is made in the cash section. *roced#re of cash
!ayment against che$#e is disc#ssed #nder e"aborate"y. =ash !ayment of che$#e inc"#des
fe& ste!sF
53 5ir!t of all th %lint %om! to th %ountr "ith th %h%$ and *iv it
to th offi%r in %har* thr. /h offi%r %h%$! "hthr thr ar
t"o !i*natur! on th 2a%$ of th %h6u and %h%$! hi! 2alan% in
th %om(utr. Aftr that th offi%r "ill *iv it to th %a!h in %har*.
54
55
56
57
58
59
60
61
62 /hn th %a!h in %har* vrifi! th !i*natur from th !i*natur
%ard and (rmit! th offi%r in %om(utr to d2it th %lint3! a%%ount
2y *ivin* (o!tin*. A (o!td !al "ith tllr num2r i! *ivn.
63 /hn th %h6u i! *ivn to th tllr (r!on and h aftr %h%$in*
vrythin* a!$! th dra"r to *iv anothr !i*natur on th 2a%$ of
th %h6u.
64 If th !i*natur mat%h! "ith th on *ivn (rviou!ly thn th
tllr "ill ma$ (aymnt $(in* th (ayin* %h6u "ith him "hil
"ritin* th dnomination on th 2a%$ of th %h6u.
65 'a!h (aid !al i! *ivn on th %h6u and ma$ ntry in th
(aymnt r*i!tr.
There are fe& things that sha"" be scr#tini)ed and checked before making !ayments.
i. 2ame of the dra&er
ii. 5cco#nt n#mber
iii. S!ecimen signat#re
iv. The va"idity of the che$#e and make it s#re that it is not !ost dated
or #ndated.
66 The amo#nt in &ords and fig#res are same.
5ash Ba"ance ca"cu"ation
The ca"c#"ation is done by the officer in charge of cash section and then manager or
a#thori)ed officer &i"" check the ba"ance and sign in the cash ba"ance book. The ba"ance
is maintained in the ba"ance book. 0!ening ba"ance of c#rrent day is the c"osing ba"ance
of the !revio#s day. Tota" receive of the c#rrent day is added &ith the o!ening ba"ance
and tota" !ayment is ded#cted for ca"c#"ating the c"osing ba"ance or cash ba"ance.
Clearing Department
5"earing >ouse :peration
5ccording to the 5rtic"e 39/21 of +ang"adesh +ank 0rder, 1A92,the banks, &hich are the
member of the c"earingho#se, are ca""ed as Sched#"ed +anks. The sched#"ed banks c"ear
the cho#se dra&n #!on one another thro#gh the c"earingho#se. This is an arrangement by
the centra" bank &here everyday the re!resentative of the member banks gathers to c"ear
the cho#se. +anks for credit of the !roceeds to the c#stomers acco#nts acce!t =ho#se
and other simi"ar instr#ments. The bank receives many s#ch instr#ments d#ring the day
from acco#nt ho"ders. 4any of these instr#ments are dra&n !ayab"e at other banks. If
they &ere to be !resented at the dra&ee banks to co""ect the !roceeds, it &o#"d be
necessary to em!"oy many messengers for the !#r!ose. Simi"ar"y, there &o#"d be many
cho#se dra&n on this the messengers of other banks &o#"d !resent bank and them at the
co#nter. The &ho"e !rocess of co""ection and !ayment &o#"d invo"ve considerab"e "abor,
de"ay, risk and e<!endit#re. 5"" the "abor. Risk, de"ay and e<!endit#re are s#bstantia""y
red#ced, by the re!resentatives of a"" the banks meeting at a s!ecified time, for
e<changing the instr#ments and arriving at the net !osition regarding recei!t or !ayment.
The !"ace &here the banks meet and sett"e their d#es is ca""ed the ="earingho#se.
Fun"tions of t$e ,epartment
The fo""o&ing are the main f#nctions !erformed by the de!artmentF
67 *ass o#t&ard instr#ments to the ="earing7%o#se.
68 *ass in&ard instr#ments to res!ective de!artment.
69 Ret#rn instr#ments incase of dishonor.
70 *re!are I+=5 or I+D5 for the res!ective branch and %0.
ccounting %ntries o. 5"earing 3epartment
The fo""o&ing entries are given if the che$#es are honored,
/ustomer A2/ 333333333333333333333333,eit
UB+ Genera% A2/ 3333333333333333333333333/redit
U+- *rinci!a" +ranch c"ears its che$#es thro#gh the %ead 0ffice as &e"" as the che$#es
of other branches, beca#se it is on"y !ermitted. The other branches send the instr#ments
thro#gh I.+.D.5 U+- *rinci!a" +ranch acts as an agent in this case. ;or this concern
branch gives the fo""o&ing entries,
U+- >enera" 5H=SSSSSSSSSSSSSSSSSSDebit
=#stomers 5H=SSSSSSSSSSSSSSSSSSSSSSSSSSSS=redit
If the instr#ment is dishonored, the instr#ment is ret#rned to the concerned branch
thro#gh I.+.D.5. a"ong &ith the fo""o&ing entries, Incase of ret#rn/;or In&ard
instr#ment1
U+- >enera" 5H= SSSSSSSSSSSSSSSSSSSS Debit
=#stomers 5H= SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS=redit.
In case of ret#rn/;or 0#t&ard instr#ment1
=#stomer 5H= SSSSSSSSSSSSSSSSSSSSSSSSSDebit
U+- >enera" 5H=SSSSSSSSSSSSSSSSSSSSSSSSSSS=redit.
In case of ret#rning an instr#ment the res!ective officer #s#a""y "ooks for fo""o&ing
reasons,
71 A""ount "%osed
72 *nsuffi"ient fund
73 'ot arran&ed for
74 Payment stopped
75 )efer to dra4er
76 (ffe"ts not "%eared may e presented a&ain
77 Amount in 4ords and fi&ures differs
78 ,ra4er5s si&nature differs
79 A%teration re0uire dra4er5s fu%% si&nature
80 Muti%ation re0uires dra4ers "onfirmation
81 /$e0ue post dated out of date
82 ,ate in"omp%ete2missin&
83 Payee5s endorsement re0uire2 irre&u%ar
84 Payee5s endorsement re0uires an- "onfirmation
85 /%earin& $ouse stamp missin&
86 'ot dra4n on UB+
87 Present t$rou&$ an-er
If the check is dishonored d#e to ins#fficiency of f#nds, U+- charges T?. D0H7 as !ena"ty.
Bi""s 6 5"a@ue 5o""ection
=hecks, drafts etc. are dro&n on bank "ocated o#tside c"earing ho#se are sent for
co""ection. *rinci!a" +ranch co""ects its c"ients above7mentioned instr#ments from other
branches of U+- and branches other than U+-. In case of o#t &ard bi""s for co""ection
c#stomers acco#nt is credited after finishing the co""ection !rocessor. 5nd in case of in
&ard bi""s c#stomers acco#nt is debited for this !#r!ose. So it !"ace d#a" ro"e as fo""o&sF
88 =o""ecting +anker
89 *aying +anker.
There is one officer &orking over desk in this de!artment.
Fun"tions of t$e ,epartment
The fo""o&ing are the main f#nctions !erformed by the de!artmentF
90 *re!aring of 0#t&ard and In&ard =o""ection Item.
91 Inter7+ranch Transfer.
92 +atch !osting and checking as and &hen re$#ired.
93 0ther &orks as and &hen re$#ire.
pp"icabi"ity o. 5o""ection
=o""ection is done &hen:
0i1 -ayin* Ban$ i! lo%atd out !id Dha$a 'ity.
/ii1 *aying +ank is other branches of U+- sit#ated inside Dhaka =ity.
94 %aying Bank is &utside !haka City
=o""ection de!artment of *rinci!a" +ranch, U+- sends o#t&ard bi""s for co""ection
/0+=1 to the concerned !aying bank to get inter +ank =redit 5dvice /I+=51 from !aying
+ank. If the !aying bank dishonors the instr#ment, the same is ret#rned to !rinci!a"
+ranch.
$ii)#he %aying Bank of their &'n Branches Inside !haka City
=o""ection De!artment sends transfer de"ivery item to other branches of same bank
sit#ated inside Dhaka =ity. U!on receiving I+=5 c#stomers aHc is credited.
3ai"y <ask
The ro#tine dai"y tasks of the 5cco#nts De!artment are as fo""o&sF
1. Recording the transactions in the cashbook.
2. Recording the transactions in genera" and s#bsidiary "edger.
3. *re!aring the dai"y !osition of the branch com!rising of
de!osit and cash.
:. *re!aring the dai"y Statement of 5ffairs sho&ing a"" the
assets and "iabi"ity of the branch as !er >enera" -edger and
S#bsidiary -edger se!arate"y.
D. 4aking !ayment of a"" the e<!enses of the branch.
6. Recording inters branch f#nd transfer and !roviding
acco#nting treatment in this regard.
9. =hecking &hether a"" the vo#chers are correct"y !assed to
ens#re the conformity &ith the (5ctivity Re!ortM if other&ise
making it correct by ca""ing the res!ective officia" to rectify the
vo#cher.
B. Recording of the vo#chers in the To#cher Register.
A. *acking of the correct vo#chers according to the debit
vo#cher and the credit vo#cher.
Periodi"a% Tas-
The ro#tine !eriodica" tasks !erformed by the de!artment are as fo""o&sF
1.*re!aring the month"y sa"ary statements for the em!"oyees.
2.*#b"ishing the basic data of the branch.
3.*re!aring the &eek"y !osition for the branch &hich is sent to the %ead
0ffice to maintain =ash Reserve Re$#irement /=.R.R1
: . *re!aring the month"y !osition for the branch &hich is sent to the %ead
0ffice to maintain Stat#tory -i$#idity Re$#irement /S.-.R1
D. *re!aring the &eek"y !osition for the branch com!rising of the break #!
of sector &ise de!osit, credit etc.
6.*re!aring the &eek"y !osition for the branch com!rising of
denomination &ise statement of cash in ti""s. *re!aring the b#dget for the
branch by fi<ing the target regarding !rofit and de!osit so as to take
necessary ste!s to generate and mobi"i)e de!osit.
9. *re!aring an (C<tract &hich is a s#mmary of a"" the transactions of the
%ead 0ffice acco#nt &ith the branch to reconci"e a"" the transactions he"d
among the acco#nts of a"" the branches.
5"ients ser'ices
2o. of c"ients of the branch are increases. +ranch a"&ays &e"" concern no. of c"ients and
their service "eve". a"" the !eo!"e of the branch take their seats before 1D min#tes of
starting &orks and not go o#t &ith o#t a#thority !ermission or c"ients !resence. =ash
received and !ayment are made very s&ift for the c"ients remittance ,both "oca" and
foreign , bi""s co""ection and !ayment are s&ift a"&ays ca#tio#s abo#t c#stomer seating
arrangements, good behavior &ith entertainment to c#stomer , $#ick iss#ing of
D,D,T.T.*.0.,4.T. $#ick c"earing ,for&arding , statements !re!ared for c"ients.60O of
c#stomer has re"iabi"ity of its services.
5"ients satis.actions
+ranch has achieved significant c#stomer satisfaction thro#gh its dedicated services.
=#stomer res!onse regarding different factors of satisfaction are enc"osed in a!!endi<73.
Lhere sho&s that D6O of the c#stomer "ike the branch for good $#a"ity of services.
0!inion abo#t "ocation , decoration and s#rro#ndings of the branchM +ranch has rich
decoration /23O1, ,s#rro#ndings of the branch a"so goods/39 O1, c#stomer someho&
satisfied &ith techno"ogy, ski""ed !eo!"e, de"ivery of services /3DO1 b#t c#stomer are not
fee" convenience "ocation./DO1.
+ranch charge, commission, interest, other charges are a"so fair for
c#stomer/9DO1.branch has good re!#tation in the market/:DO1, and c#stomer are
confident a"&ays ab"e on its service re"iabi"ity /69O1. In res!onse of the ans&er of
$#estion ty!es of service c#stomer choice in this branch it sho&s that 60O, c#stomer "ike
foreign b#siness services.
In res!onse to the ans&er of $#estion c#stomer come for banking services it sho&s that
D0O c#stomer come at noon,DBO c#stomer come beginning and end of the months for
services. so &ork "oad become m#ch at noon, and beginning and end of the month. in res.
!onse of the ans&er of $#estion c#stomer !rob"ems of the branch it sho&s that ma'or
!rob"em of the branch is no !arking faci"ity for c#stomer /90O1. ;e& c#stomer are not
fee" convenience "ocation of the branch/2DO1 .in res!onse to the ans&er of com!etitive
sit#ation of the branch it sho&s that branch are a"&ays better than com!etitor in terms of
good services, $#a"ity of services, bank charges, ski""ed staff, friend"y &ith c#stomer, b#t
has "o& com!etitive advantages in modern techno"ogy &ith some #! to date "ike standard
chartered, 2==, one bank and others.
S#ggestion from c#stomer for f#t#re im!rovement, ne& services, credit cards, s#itab"e
"ocation, money a#tomation services, ready cash, car !arking faci"ity for c#stomers,
attractive decoration, $#ick de"ivery of services.
*oti'ation o. the %mp"oyee
4ost of the em!"oyees are satisfied &ith management !ractices, incentive, bon#s,
&orking environment of the branch. +#t fe& of them has arg#ment abo#t &orking "oads,
&orking ho#rs of the branch. They have to &ork "ate ho#rs &ith o#t any overtime,
incentive. some of them has arg#ment abo#t training and h#man deve"o!ment. They need
training to ada!t &ith techno"ogy that bank has introd#ced7 ne& &ay of &riting
DD,4T.TT.*.0. and other advice . some of the em!"oyees e<!ress o!inion abo#t
changing of the branch and im!roving their &orking environment. 4ost of em!"oyees are
committed to &ork more if the a#thority im!"ement ne& !ay sca"e for them. In res!onse
of the $#estionnaire concerned &ith em!"oyee fee"ings it sho&s that A0O of the !eo!"e
fee" very good in the branch 30O !eo!"e dissatisfied &ith branch "ocation and hygienic
environment. :0O !eo!"e "oss their interest d#e to high &orking "oads and "ong d#ration
of &orks. 60O !eo!"e are not satisfied &ith their !resent rem#neration. according to them
their !ay sca"e ,incentive are not com!etitive. B0O !eo!"e c"aim more increment bon#s,
and s#itab"e "ocation of the branch. 10O !eo!"e says team &ork are not !ro!er"y &ork
here, d#e to management discriminate attit#de to&ards them. 60O !eo!"e recommended
for modern techno"ogy, &ith training for im!roving their ski""s and red#ce their &orking
"oads.

*ajor =rob"em ;n 0enera" Banking
*rob"em in genera" banking arises &hi"e iss#ing and res!onding different ty!es of D.D,
4.T, *.0. T.T, S=.-S=,D.D. I+*, D.D.*. d#e to different bet&een act#a" amo#nt and
&ritten amo#nt in those botchers . this !rob"em most re!eated occ#r in genera" banking
for mis#nderstanding of &ritten amo#nt or not conscio#s"y read the amo#nt in &ords in
advice. 5nother !rob"em is &hi"e iss#ing and res!onding of 4.T, T,T, same message are
send from different branch. This ha!!en d#e not #se the sea" of message confirmation by
te"e!hone .then it needs to send severa" message and m#ch ha)ards occ#rs in
reconci"iation. 5nother !rob"em occ#r d#e to not getting of advice of 4t., T,T, DD from
different branch. 5nd making sched#"e for reconci"iation are not !ossib"e for head office.
5nother !rob"em occ#r in c"ean cash &hen so many +o#cher may attached &ith other
categories .most serio#s !rob"em is that many branch of Uttara bank have not te"e!hone
*anagement e..iciency o. the branch
4anagement of the branch is very efficient. Disci!"ine is strict"y fo""o&ed in a"" activities
of the branch. 4anagement a"&ays fo""o&ed, banks norms, c#"t#re, ethics. 4anagement
immediate"y im!"ement any circ#"ar from head office, +ang"adesh banks, finance
ministry that a!!ro!riate for them. 5ny ty!es of ne& techno"ogy. 2e& method of &ritten
re!ort, s#bmission of statement immediate"y im!"ement in the branch. +ranch manager
a"&ays concern his d#ties and res!onsibi"ity. 5"&ays he observe a"" the officers &orks in
front of their tab"e. In case of any ty!es of error in the &orks by an officer he
immediate"y take meas#re to rectify it. 5"&ays concern fo""o&ing of banking g#ide"ines
in a"" banking activities. %e a"&ays concern abo#t c#stomer satisfactions &e"" as
entertainment of the va"#ab"e c"ients. in case of any com!"ain form c#stomer in any
banking service he acce!t it and rectify. 5"&ays take s#ggestion from the c"ients for their
f#t#re satisfaction. manager a"so conscio#s abo#t em!"oyee satisfaction as &e"" as their
c"aims and arg#ment. 5nd try to give a!!ro!riate so"#tion of their !rob"em. he a"&ays
conscio#s abo#t b#i"ding team &ork among them . in case of any em!"oyees absence he
fi"" the ga!s by other officers so that any officia" &orks are not !ending. 4anager direct"y
observe !erformance of the officers and re!ort them to the higher a#thority for
!romotion. %e a"so concern &ho are non !erformer and take a!!ro!riate meas#re for
them. 0fficia" disci!"ine are strict"y fo""o&ed, no em!"oyees and officer cannot go o#t of
office &itho#t !ermission of manager. Cm!"oyees have to &ear officia" dress ,!resent in
their desk, #nti" finished of the officia" &orks. In case of any disobey of officia"
disci!"ine immediate"y actions are taken regarding him. 4anagement a"so concern
hygienic &orking environment, s#ch as !#re drinking &ater , canteen for "#nch,
entertainment for the staff , neat and c"eanness of the branch, toi"et bath room faci"ity,
!rayers !"ace for the !eo!"e. 5nd a"&ays try to im!rove branch environment.
Loans and ad"an!e of %ttara bran!h
5ategories o. "oans o..ered by the branch
5gric#"t#re
-arge and medi#m sca"e ind#stries
C<!ort
0ther commercia" "ending/'#te and ferti"i)er1
Sma"" and cottage ind#stries
=ons#mer -oan
*ersona" "oan
0thers
a1 %o#sing "oans
b1 Residentia"
c1 =ommercia"s d1 Trans!ort e1 =o"d storage f1 +rick fie"d g1 >o"d "oans h1 5gainst &ork
orders i1 5gainst &ork ;DR @1 -oans against sanchay!atra k1 "oans against LC+D, I=+,
#nit certificate " 1 "oans against "ife ins#rance !o"icy k1 0thers s!ecia" !rogram
5"assi.ied "oans and pro'ision
=er.ormance o. "oans reco'ery
$/// $//1 $//)
Unrecovered "oans :AD.2D :B0.16 3B2.00
S#it money 166.:3 10D.:B 2DD.1A
Recovered 1A.10 1B.00 D.9
O recovered by s#its 11.DO 19.06O 2.23O
*ajor .indings
-oans are #n7recovered as these are sanctioned against im!ro!er doc#ments.
-oans are given as the order of direct higher a#thority.
-oans is not !ro!er"y #ti"i)ed, "oans &as ca#tioned for one sector b#t #sed in other
sector.
-ack of s#fficient interest .financia" "oss in b#siness of the creditor.
-oans are given &itho#t !ro!er ins!ection of !"edged assets or hy!othecation.
-oans are #n7recovered d#e to va"#e of the co""atera" assets are not !ro!er"y
assessed.
4a<im#m "oans are cash credit instead of co""atera" credit.
-oans are #n7recovered d#e to !resent govt. !o"icy has "ack ness to take "ega" action
against "oan defa#"ter.
-oans are sanction7"imited sector.
4a<im#m "oans are c.c.H abnorma" money e<cess of c.c.
-oans are sanctioned against discre!ant doc#mentsH doc#ments are not !ro!er"y
e<amined.
-oans are given "oans are given &itho#t fo""o&ing +ang"adesh bank +.*.R.D.
=reditor are not avai"ab"e fo#nd in the co#ntry.
5redit management and reco'ery o. c"assi.ied "oans
5s c"assified "oans increase !rovision rate, create adverse effect on investment .in order
to acce"erate the investment, red#ce inf"ation and to attain target gro&th rate the
fo""o&ing g#ide"ine have to be fo""o&F
Undertaking ste! for recovering of a"" c"assified money.
*ro!er"y a#dit creditor financia" sit#ation, &i""ingness of re!ayment of "oans money,
creditor so#rces of income !ro!erty.
+ank m#st taken #rgent meas#re for recovery of "oan money.
C<amining !ro!er"y a"" doc#ments and charges doc#ments. 5nd s#bmitting to harm
de!t. take immediate "ega" action by e<amining the acc#rateness of a"" the doc#ments
and amended doc#ments by the direction of head office.
Cm!"oying &e""7$#a"ified advocates for #n recovered "oans money co""ection against
!o&erf#" and "arge amo#nt creditor.
+ranch manager have to be concern regarding $#ick sett"ement of a"" s#it cases , in
the case date bank re!resentative m#st !resent in the co#rt and !rovide information to
the com!etent a#thority.
Strict"y fo""o& g#ide"ine of +ang"adesh bank &hi"e sanction "oans.
Take acc#rate g#arantee from the creditor so that creditor get no !rovisionH evasion
of not !ay bank d#e money.
+ranch m#st achieve ann#a" and ha"f year"y b#dget target so that amo#nt of c"assified
"oans may be concern by higher a#thority and take a!!ro!riate action.
+ank have to be set #! a more strengthen RI4 de!artment. +ranch manager have to
be direct"y cons#"t &ith the De!#ty >4 of R I4 .
%ead office have to em!"oyee a former D.=. as an "ega" advisor in order acce"erate
recovery of c"assified "oans.
4eas#re m#st be taken a"" debts before they are being c"assified or before e<!iry
dates that "oans not be c"assified.
*reca#tion m#st be taken &hi"e a!!rova" of "oans !ro!osa" in %.0. m#st '#stify rea"
sit#ation of #sing "oans granted "oans, incase e of any discre!ant doc#ment or any
c"aim against "oans m#st inform %.0. for not sectioning "oans to that a!!"icant.
=recaution !hi"e sanction o. ne! "oans:
+anker m#st ana"ysis borro&er nat#re of b#siness, e<!erience in b#siness,
$#a"ification, good&i"". Income so#rces, !rofit from invested money, abi"ity to
re!ayment of "oans money.
+efore s#bmit "oans !ro!osa" banker m#st !ro!er"y e<amining risk and g#aranteed
va"#e from "oans.
Lith a vie& to !ro!er"y assessed the !ro!osa" of the borro&er banker m#st fi""ed
a!!"ication inc"#ding borro&er cash f"o& ,!ersona" neth &orth , descri!tion of
mortgage assets, assets and "iabi"ity ratio and s#bmit the !ro!osa" to %H0 .
+anker m#st be ins#re that borro&er mortgage !ro!erty are not !"edged to other
bank .
Lhi"e sanction "oans above 10 "ac !ro!osa" m#st be s#bmitted to +ang"adesh bank
&ith detai"s descri!tion of #se of "oans money.
-ending risk m#st ana"ysis before sanction Tk. D0 "ac.
+anker m#st ins!ect !ractica""y &hi"e rene& of "oans &ith a vie& to asses !ro!erty
act#a" market va"#e.
Sanctions o. Loans and subse@uent stagesF
5"" sec#rity doc#ment and charges doc#ment m#st be !ro!er"y com!"eted.
+anker m#st be ens#re #ti"i)ation of money so that one so#rces sanctioned "oans
may not other so#rces by the borro&er.
5ny #n&i""ingness of #ti"i)ation of "oans money by the borro&er m#st be informed
by the bank and !ro!er "ega" action m#st be taken against him.
+ank m#st re&arded and enco#rage those borro&er &ho reg#"ar re!ayment of "oans
and m#st give !reference to him for "oan sanction.
+ranch m#st !resent re!ort to +ang"adesh +.R.*.D. abo#t !rob"em and !erformance
of recovery of c"assified "oans ,"ega" action against those borro&er according to
+ang"adesh bank +.R.*.D. circ#"ation.
+ranch manager m#st be ens#re abo#t obedience of a"" the above ste!s.
"oreign e#change
;oreign C<change is very "#crative I !rofitab"e in modern +anking b#siness. Its
recogni)ed as a &ay of generating ma<im#m !rofit &ith "o& investment. In other
+anking "ike advance needs high ca!ita" investment. +#t foreign e<change re$#ired
com!arative"y "o& investment. In foreign b#siness com!"e<ity is high d#e to ra!id
change in techno"ogy es!ecia""y for a bank consists of so many branches dis!ersed in a
&ide region. The system is easy for a bank to contro" rich in ca!ita" e$#i!!ed &ith
modern techno"ogy concentrated in a sma"" areas. Techno"ogy is necessary to !re!are
$#ick statement, getting information, !re!aring re!orts .2o& techno"ogy is a t#rb#"ent in
foreign e<change b#siness. To s#rvive in the com!etition a bank have to ada!t &ith this
changes. ;or this it &i"" re$#ired ski""ed man!o&er, on "ine banking, 2:7 ho#rs banking
services, high ca!ita" investment . *rob"ems arises in foreign e<change for changes in
economica", and !o"itica" b#siness environmenta" changes of the co#ntry. =hanges in
e<changes rate , change in c#rrency rate , govt. r#"es and reg#"ations, create !rob"ems
&hi"e dea"ing in foreign b#siness. So it needs a"&ays a conscio#s mind for s#ccessf#""y
dea"ing in foreign b#siness.
3arties concerned +ith L6#:

>o! to open an LD5
;or o!ening an -H= there m#st be a re"ationshi! bet&een banker and c#stomer thro#gh
o!ening an acco#nt &ith the bank.
=rocedures .or opening a bank accounts:
95 +efore o!ening acco#nts c"ients m#st s#bmit some !a!er
96 in case of com!any m#st s#bmit ann#a" financia" statement
97 in case of individ#a" m#st s#bmit a"" ty!es of income ta< !ayment certificate.
<here are three types o. bank account.
51savings acco#nt b1c#rrent acco#nt c1STD d1;DR

98 ;or o!ening bank acco#nt first have to fi"" #! a!!"ication form
99 Then have to #se to reference &ho have e<isting re"ation shi! &ith the bank or a""
ready maintain acco#nts &ith the bank.
100 T&o co!ies resent attest !.!. !hotogra!h.
101 *#t three s!ecimen signat#re on the signat#re cards.
102 Lrite in detai"s amo#nt of de!osits and nominee !erson address re"ation &ith
acco#nt ho"ders &ho &i"" ho"d the acco#nt in the absence of c"ients.
103 Cnc"osed memorand#m of associations and artic"es of associations a"ong &ith
form.
104 -H= m#st be o!en thro#gh c#rrent acco#nt.
105 *er$#isite for o!ening -H=
>a'e to take some charge documents .rom the party
a1trading "icensee b1chamber of commerce certificate c1"ast fisca" year income ta<
certificate .
<hen the importer ha'e to submit a proposa" .or opening LD5 a"ong !ith1
-H= a!!"ication.
-icense no.
*roforma invoice.
*arties a!!"ication.
-.c. set
IR=.
Ins#rance covered note.
LD5 dea"ing o..icer ha'e to proper"y check the =ro.orma in'oice Edescri!tion of
goods a"ong &ith its !rice, $#antity, $#a"ity, so#rces of e<!ort co#ntry, marketabi"ity of
goods, shi!ment dates, shi!!ing days, bi"" of entry. *acking "ist, certificate of origin, %.S.
code no. brand ne&.
=ertificate of ta< !ayers from ta< commissioner.
Trade -icense from city commissioner .
=ertificate from im!ort and e<!ort registration de!artment.
4oney recei!t from ins#rance com!any to red#ce risk e<!ort !ort to im!ort
destination.
-H= 5#thori)ation form of the bank contains IR= n#mber, shi!!ing !eriod,
descri!tion of goods date of ".Hc iss#es.7 1 co!y for +ang"adesh banks. Lith name and
address of dea"er remittance, ".Hc form, descri!tion of goods, inventor name, !rice for
e<change c"earance. 17 co!y for c#stom !#r!ose , another co!y for office record.
Doc#ments needed for o!ening -H= are enc"osed here&ith a!!endi<7:.
Nature o. LD5
106 =ash -H= /sight1
107 =ash -H=
108 In"and +H+ -H=/sight1
109 ;oreign +H+ -H=
110-Hc #nder 5ID "oans
111Im!ort from C*U +H+H-H=1
112Im!ort from C*U +H+H-H=1 /sight1
113Im!ort from C*U A=5S% -H= /SI>%T1
114-H= U2DCR sta.
1150thers
LD5 is most suitab"e under .o""o!ing conditions
Lhen the im!orter is not &e"" kno&n. The e<!orter se""ing on credit may &ish to
have the !romise of !ayment.
Lhen the im!orter doesnt &ant to !ay the e<!orter #nti" it is reasonab"e certain that
the merchandise has been shi!!ed in good condition.
;mportance o. LD5
In internationa" trade since the b#yer and se""er are $#ite distant from each other a
!rob"em often arises to make the de"ivery of goods and &hen to make the !ayment for the
de"ivery. This !rob"em is absent in home trade. +#t in foreign trade neither the im!orter
nor the e<!orter can re"y com!"ete"y #!on the others. -H= is an effective instr#ment that
can so"ve this !rob"em a"so act as a finance for the b#yer. This method is a com!romise
bet&een b#yer and se""er beca#se it affords certain advantage to both !arties. The
e<!orter is ass#red of receiving !ayment from the iss#ing bank as "ong as its !resent
doc#ments in accordance &ith -H=. the iss#ing bank is ob"igate to honor dra&ing #nder
".Hc regard"ess of the abi"ity or &i""ingness to !ay. Im!orter does not have to !ay #nti"
shi!ment has been made and the doc#ments !resented in good order. %o&ever the
im!orter sti"" re"y #!on the e<!orter to shi! the goods as described in the doc#ments,
since the -H= does not g#arantee that the goods !#rchased &i"" be those invoice and
shi!!ed. So the #s#a" time #nder a -H= is &hen shi!ment has been made. Lhi"e the goods
are avai"ab"e after !ayment, the risk to the e<!orter is very "itt"e, de!ending on credit
term, &hi"e the risk to the im!orter is that he has to re"y on the e<!orter to shi! goods
described in the doc#ments. +eca#se of a"" the !rotection and benefits it can accords both
e<!orter and im!orter .

LD5 procedure:
The vario#s ste!s invo"ved in the o!eration of credit are described as fo""o&s
The im!orter and e<!orter have contract before a -H= has been iss#ed.
The im!orter a!!"ies for a -H= from his banker kno&n as the iss#ing bank. %e may
#se his credit "ines.
The iss#ing bank o!ens the -H= that is channe"ed thro#gh its overseas corres!ondent
bank, kno&n as advising bank.
The advising bank inform the e<!orter of the arriva" of the credit.
C<!orter shi!s the goods to the to the im!orter or other designed !"ace as sti!#"ated in
the -H=.
4ean&hi"e the e<!orter a"so !re!are his o&n doc#ments and co""ects trans!ort
doc#ments or other doc#ments from re"evant !arties . a"" doc#ments &i"" be sent to
his banker &hich is acting as negotiating bank.
2egotiation of e<!ort bi""s occ#r &hen the banker agrees to !rovide him &ith finance.
In s#ch case he obtains !ayment immediate"y #!on !resentation of doc#ments. If not
the doc#ments &i"" be sent to the iss#ing bank for !ayment or an a!!rova" basis in the
ne<t ste!.
Doc#ments are sent to iss#ing banker reimb#rsing bank, &hich is a bank nominated
by the iss#ing bank to honor reimb#rsement from negotiating bank for reimb#rsement
or !ayment.
Iss#ing bank honors to its #ndertaken to !ay the negotiating bank on condition that
the doc#ments com!"y &ith the -H= terms and conditions.
Iss#ing bank re"eases doc#ments to the im!orter &hen the "etter makes !ayment to the
former or against the "etter tr#st recei!t faci"ities.
The im!orter takes de"ivery of goods #!on !resentation of the trans!ort /#s#a""y
shi!!ing doc#ments1 .
=arties in'o"'ed in "etter o. credit
<he app"icant:
The a!!"icant is the !arties &ho genera""y a!!roaches in order to iss#e the -H=. genera""y
the a!!"icant ids the e<!orter &ho reaches an agreement &ith the e<!orter before
a!!roach in the bank to iss#e the -H=.
<he issuing bankA
The bank iss#ing the -H= is kno&n as iss#ing bank and it is #s#a""y the bank &ith &hich
the im!orter maintain an acco#nt. The iss#ing bank #ndertakes an abso"#te ob"igation to
!ay #!on !resentation of doc#ments.
<he ad'ising bank:
The corres!ondent bank sends the -H= is common"y referred to as advising bank. The
advising bank sim!"y advises the -H= &itho#t any ob"igation on its !art. %o&ever, the
advising bank sha"" take reasonab"e care to check the a!!arent a#thenticity of the credit
that it advises.
<he bene.iciary:
The beneficiary or e<!orter is the !arty entit"ed to dra& !ayment #nder -H=. The
+eneficiary &i"" have to !resent the re$#ired doc#ments to avai" !ayment #nder -H=.
<he 5on.irming bank:
The confirming bank confirms that the iss#ing bank has iss#ed a "etter of credit. The
confirming direct"y ob"igated on the credit to the e<tent of its confirmation and by
confirming it ac$#ires the right and ob"igation of an iss#er.
<he negotiating bankA
The bank that agrees to e<amine the doc#ments #nder the -H= and !ay tDhe beneficiary is
ca""ed the negotiating bank. Ty!ica""y, the advising bank is nominated as the negotiating
bank.
Back to back LD5
+ack to back -Hc is most"y iss#ed in +ang"adesh. Lhen a beneficiary receive a "etter of
credit &hich is not transferab"e and he cannot f#rnish the goods himse"f, he may arrange
&ith his banker to iss#e a second credit &hich is kno&n as back to back -H= to s#!!"ier
to s#!!"y the goods.
5s both -H= cover the same goods the back to back credit m#st be iss#ed &ith identica"
terms to the m#ster -H=, e<ce!t that the credit amo#nt, #nit !rice if any are sma""er. The
e<!iry date #nder the back to back credit is ear"ier &hi"e the "atest shi!ment date may
have to be advanced. The bank iss#ing back to back credit &i"" obtain re!ayment thro#gh
m#ster credit &hich is de!osited to the iss#ing bank of the back to back credit. The bank
m#st try to maintain contro" of the doc#ments and ho"d them after !ayment to the
s#!!"ier !ending recei!t of its c#stomers invoices and !resent the doc#ments itse"f for
!ayment #nder the m#ster credit in favor of its c#stomer.
d'antage and disad'antage o. LD5
d'antages

5n im!orter can ass#re that the e<!orter has com!"ied &ith certain terms and
condition as s!ecified in -H= before !ayment.
Im!orter can insist on shi!ment of goods &ithin a certain time sti!#"ated a "atest
shi!ment date.
%e can get advice from the banker according to -H= terms.
%e can ask for financia" assistance from the banker.
*rotection offered by U=*D00.
3isad'antages
Since bank dea"s &ith doc#ments on"y goods may not be the same as those s!ecified
in the credit.
Iss#ing bank ob"iged to !ay even tho#gh the conditions of goods may be !oor.
-H= commission are re"ative"y high.
d'antages .or e&porter
The risk for non!ayment is "o&er as com!"ies !rovided &ith "Hc.
It is a safe method thro#gh &hich !rom!t !ayment obtain after shi!ment.
C<!orter can get e<!ertise advice from the banker.
The e<!orter can get financia" assistance before the b#yer makes !ayment.
3isad'antages
Sometimes terms and condition cannot f#"fi"" s#ch as #nreasonab"e shi!ment date
adding on -H= the c"a#se of ,restriction of a designated vesse" to be informed by -H=
amendment
The goods shi!!ed before receiving !ayment and so it is not 100 !ercent safe.
*ain business o. 7oreign e&change department
The !rimary b#siness of foreign e<change de!artment of +arisa" branch is to make
reimb#rsements and !ayments on beha"f of the iss#ing bank. +esides acting as the
corres!ondent bank for reimb#rsing bank or the !ayee bank, branch a"so advice s
negotiates, and confirm "etter of credits. 5cting as the negotiating and confirming +arisa"
branch earns a commission, &hich is a !ercentage of the tota" -H= amo#nt. This
*ercentage varies de!ending on the risk of non7!ayment by the im!orter. 0n the other
hand branch earns a f"at rate fi<ed commission &hen it acts as the advising bank as &e""
as &hen it a#thori)ed to make reimb#rsement on beha"f of the iss#ing bank.
Reimb#rsement made either to 5=U Do""ar acco#nt 54CQ =a"c#tta, or to USP do""ar
acco#nt in 54CQ ne& 6ork. These reimb#rsements contrib#te to a ma'or !ortion
reven#e of foreign e<change de!artment.
Ser'ice o..ered by .oreign e&change department o. Uttara branch
+arisa" branch offered a &ide services for its re"ation shi!s other bank and c"ients both
home and aboard. these. Service are re"ated to trade finance, internationa" !ayment,
investment, trading services.
5redit items
-etter of credit /-H=1 negotiation
-etter of credit /-H=1 confirmation.
Non1credit items
-etter of credit /-H=1 advising.
Reimb#rsement a#thori)ations.
*ayment instr#ction.
C<!ort bi""s co""ections.
7oreign remittance
5"" ty!es of -H= money, st#dents fees, and other charges are send to foreign co#ntry
thro#gh remittance. 5fter negotiation bet&een im!orter and e<!orter , getting a""
doc#ments, !ayments of goods are made to the e<!orter bank/advising bank1from U.S.5.
5me< bank. b#t m#st be arrangement &ith that bank .after entering the goods in the
im!orter co#ntry, getting bi""s of entry from the c#stom, e<!orter send a"" doc#ments to
the iss#ing bank. Iss#ing bank then '#dge the acc#rateness of these doc#ments and
ca"c#"ate tota" d#e &ith interest , commission ,and other charges, ded#ct amo#nt of
margin that &as !re!aid &hi"e o!ening -H= after !re!aring dock statement7a"" the entry
transaction is re!orted to a c7form to +ang"adesh bank &here tota" foreign c#rrency
record is maintain in commodity &ise.
=rob"ems o. .oreign e&change remittance
Sti"" many co#ntry of the &or"d has not o!en e<change ho#se "ike @a!an, ?orea,
=anada , +e"gi#m and others so c"ients cannot get !rom!t"y remittance.
Cvery year many e<!orter co""ect cash assistance by sho&ing fa"se doc#ments to
+ang"adesh bank. 5s a res#"t m#ch c#rrency are go a&ay of the co#ntry that are a
ma'or !rob"em for im!ort and foreign c#rrency of the co#ntry.
5s sti"" there Is no remittance &ith many co#ntries taking this o!!ort#nities one c"ass
of broker are benefited, do""ars are going a&ay of the co#ntry , the rate of e<change of
Tk. are decreases.
So"utions o. cash remittance prob"ems
5de$#ate meas#re have been taken for $#ick remittance , e<change &areho#se have
to set in each co#ntry &here +ang"adeshi are avai"ab"e.
=ash remittance may be a !rofitab"e so#rces of foreign income in th absence of others
e<!ort b#siness.
5de$#ate re&ards have to be given a"" those foreign +ang"adeshi &ho send their
money thro#gh remittance.
=ard system have to introd#ce o!ening a nostros acco#nt of each individ#a"7then
amo#nt of cash remittance &i"" be increases.
Suggestion .or the management .or .uture impro'ement
Deve"o!ing team s!rit1manager have to take detai"s information regarding em!"oyees
iAncome fami"y, no of chi"dren, &here they st#dy, !ersona" !rob"em, c"aim of &orks and
have to give so"#tion for them ,. So that in case of any officer absence they can r#nning
officia" &orks coo!erative &ith others and deve"o! team s!rit in their &orks.
*ake cautious to e'ery emp"oyees E management have make ca#tio#s to every
em!"oyees that they to &ork &ith make o#t, and o!ening their eyes and ear so that any
mistake can not occ#r in their &orks.
-educing a"" unnecessary charges7 manager have ca#tio#s abo#t branch !rofit so
#nnecessary charges have to red#ce.
=roper uti"i?ation o. branch resources7 +ranch has to #se a"" reso#rces, s#ch as ca!ita".
;#nds, de!osit, "oans and advances, assets, e$#i!ment !ro!er"y. 4anager have to #se the
&ork force !ro!er"y, so that some of the em!"oyees cannot s!end their time id"y &hi"e
others do &orks.
="acement o. o..icer to reduce !ork "oads7 4anagement have to &rite "etter to head
office for !roviding them more $#a"ified staff to increase efficiency of the branch.
4odern techno"ogy7 management have to take meas#re for arrangement of modern
techno"ogy to s!eed #! &orks and red#ce their "abor.
F1 cash or ready cash ser'ices1n E in order to tack"e com!etition, and s!eed #!
c#stomer branch need to introd#ce ne& services, s#ch as ready cash, or $7cash "ike other
!rivate bank7 to increase c#stomer satisfaction, and no. of c"ients. 5s c#stomer a"&ays
interested abo#t ne& services "ike ready cash that can red#ce their time, cost risk, traffic
'am. In ready cash system they can &ith dra& their money from any branch &here he
intentioned, not need !hysica""y !resent that branch.
Strict"y .o""o!ed o. business ethics
4anage have to care abo#t fo""o&ing of b#siness ethics in a"" the activities7not take any
gift from c#stomer7 in case of offer tactf#""y avoid gift.
Not pending o. o..icia" !orks7 management have to ca#tio#s abo#t not !ending of
&orks, sending re!ort to the head office acc#rate time, sending advices, TRT to different
branch to a!!ro!riate time, $#ick"y res!onse to a#dit re!ort.
Shi.t the branch in suitab"e "ocation
5s c#stomer fee"s many dist#rbances to come here so the branch have to be shifted in a
s#itab"e "ocation &ith !arking faci"ity.
;mpro'ing !orking en'ironment1
5s the branch has s!ace "imitation, seating !"ace, so management have to im!rove
&orking environment. +ranch need se!arate !"ace for officia"s and c#stomer saying
!rayers.
;ncreasing deposits1 as branch de!osits are com!arative"y "o& than "oans and advance
so branch need to take meas#re to increase de!osit thro#gh o!ening ne& c"ients acco#nt
>uman resources de'e"opment
4anagement a"&ays have to em!hasis on h#man reso#rces deve"o!ment of the branch
they have not re"y on"y on fe& em!"oyees. 4anagement have to take meas#re for
em!"oyee training for f#t#re im!rovement of their ski""s.
%&panding ser'ice range
+ranch sho#"d e<!and services range, they sho#"d introd#ce ne& service that are not
co!ied by the com!etitor as &e"" as service offered by com!etitor bank.
;ncreasing branch assets
+ranch have to em!hasis on increasing its o&n assets, it sho#"d b#y o&n b#i"ding,
!#rchases more e$#i!ment, and other assets to red#ce e<tra charges.
;mp"ementation o. ne! pasca"e.
5s em!"oyees has strong e<!ectation abo#t to im!"ement of ne& !ay sca"e. it is a great
e<!ectation that ne& !ay sca"e have a"ready design for them so management sho#"d
immediate"y im!"ement the ne& sca"e to increase their motivation "eve".
*aking "ist o. non per.ormer o. the branch
Some of the em!"oyees &ho id"y s!end their time or b#sy other b#siness branch need to
make of those non7!erformer and take immediate action to&ards them s#ch as s#s!end,
demotion, transfer, fine etc.
Bork ethics
Cm!"oyee of the branch have to be fo""o&ed &ork ethic in a"" officia" activities.
5"ient satis.action
4anagement sho#"d a"&ays &orks for their c"ient satisfaction .they sho#"d "isten
c#stomer com!"aint and take remedies to so"ve these. They sho#"d take a"" necessary
arrangement for c#stomer satisfaction thro#gh im!rovement of branch environment ,
"ocation, sec#rity, !arking faci"ity ne& service etc.
5ustomer retention
4anagement have to take ste!s to retain c#stomer. They sho#"d b#i"d a strong
re"ationshi! &ith their e<isting c#stomer so that they cannot s&ift a&ay to com!etitor
bank. +eca#se retention is si< time im!ortant than attention of ne& c#stomer.
%&panding in'estment base
+ranch sho#"d e<!and investment base, they sho#"d not de!end on"y on "imited sector of
investment, they sho#"d invest a"" !rofitab"e sector to increase their !rofit and maintain
gro&th "eve".
-educing bank charges !here necessary
+ranch sho#"d red#ce charges for !rice sensitive c#stomer es!ecia""y &ho transaction
high vo"#me of b#siness.
Being more marketing oriented
+ranch have to take more marketing oriented for s#ccess in f#t#re. The sho#"d take
strategic marketing !"an to increase their !rofit and gro&th.
5 !rob"em service organi)ation face is that they may be #na&are of a"" the ca!abi"ities
they have. This is d#e to bank intangib"e e"ements !artic#"ar"y h#man ski""s and a!tit#de.
0rgani)ation fai" to a#dit a"" the areas to manage the farm ca!abi"ity. This is beca#se
intangibi"ity of their ca!abi"ity.
The !artic#"ar range of services offered &i"" be deve"o!ed In res!onse to interna" needs
and e<terna" inf"#ences. =#stomer and #ser !erce!tions of !rod#ct "ines can often give
services marketer insight into &ays in &hich service !rod#ct mi< sho#"d e<tended or
red#ced service !rod#ct "ines stretched or shortened.
5:N5LUS;:N:
Uttara +ank -td is the "argest nn7government organi)ation thro#gh o#t or this
region. It is &orking mass !eo!"e abo#t a$#ac#"t#re, socia" &e"fare and income
generation of this region.
-eadershi! sty"e !rocess accom!"ished ha"f of its organi)ationa" activities.
Cm!"oyees are the "ifeb"ood of organi)ation and "eadershi! sty"e are the &ay to motivate
and maintain that.
Lork mood is associated "eadershi! sty"e in many senses. 5n a!!ro!riate
"eadershi! sty"e can bring the 'ob satisfaction among em!"oyees.
Uttara +ank -td, +arisa" +rach, +arisa" is s#ch non7government organi)ation is
high"y concerned &ith those factors of -eadershi! sty"e. They a!!"y an effect ion sty"e to
im!"ement the organi)ationa" ob'ectives. ;rom a!!"y an effective sty"e to seen that
effective -eadershi! sty"e bring a great and fr#itf#" s#ccess of the organi)ations.