Chapter-4

Performances of UCBL in FEB

4.0 Bank Performance: Performances of UCBL in FEB has been described
in this chapter.
UCBL At a glance
United Commercial Bank Limited has diversified activities in retail banking,
corporate banking and international trade. From the very beginning it has
obtained a solid foundation in respect of foreign trade. Its total import,
export and remittance for the year of 2002 were 14,975.30, 5,620.90 & 735
million taka respectively. The United Commercial Bank Limited has
established a modern dealing room for foreign trade money management. It
has 18 authorized branches for dealing foreign exchange business.

Particulars

1998

1999

2000

2001

2002

Authorized Capital
Paid-up Capital
Reserve Fund
Deposits

1,000.00
23.16
301.59
10,899.90
5,554.16

1000.00
230.16
348.78
12,387.4
7
9,443.87

11,826.08

12080.58

Investments
Gross Income
Gross Expenditure
Net Profit(pre-tax)
Import Business

1,958.85
984.36
863.96
120.40
13,049.90

3,304.27
1,062.64
711.15
351.49
8,764.90

5,192.40
110

2,162.92
1,401.87
1,095.68
22.89
12,534.4
0
7,178.90
110

3,961.60
1,766.31
1,311.39
154.92
14,975.30

Export Business
Foreign
correspondents
Number of

1,555.14
1,098.76
987.74
111.02
14,150.9
0
5,616.50
110

1,000.00
230.16
939.50
14,245.8
7
10,941.9
8
1,961.58
1,727.06
1,223.77
175.03
13,132.9
0
5,309.30
110

1000.00
230.16
440.42
16,417.29

Advances

1,000.00
230.16
334.78
10,059.8
5
8,557.91

June,
2003
1000.00
230.16
440.42
16,890.62

5,620.90
110

3,511.10
110

1947

1878

1842

1842

1819

1861

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Employees
Number of
79
79
Branches
Number of
2,128
30,86
shareholders
The progress of UCBL At a glance:

79

79

80

80

3,200

3,539

3942

4503

(Figure in Million)

4.1 Foreign exchange operation of UCBL:

United Commercial Bank Limited has diversified activities in retail
banking, corporate banking and international trade. Its total import, export
and remittance for the year of 2002 were 14,975.30, 5,620.90 & 735 million
taka respectively. It has 18 authorized branches for dealing foreign exchange
business.
Particulars
Authorized Capital
Paid-up Capital
Reserve Fund
Deposits
Advances
Investments
Import Business
Export Business

1998
1,000.00
23.16
301.59
10,899.90
5,554.16
1,958.85
13,049.90
5,192.40

1999
1,000.00
230.16
334.78
10,059.85
8,557.91
1,555.14
14,150.90
5,616.50

13

2000
1000.00
230.16
348.78
12,387.47
9,443.87
2,162.92
12,534.40
7,178.90

2001
1,000.00
230.16
939.50
14,245.87
10,941.98
1,961.58
13,132.90
5,309.30

2002
1000.00
230.16
440.42
16,417.29
11,826.08
3,961.60
14,975.30
5,620.90

It is clear from the above table that, the banks position with respect to
deposits, advances; investment and net income (pre Tax) has been generally
improving from 1998 to June 2003.
Import Business:
United Commercial Bank Limited has embarked on extensive foreign
exchange business for facilitating international trade transactions of the
country.

Source Annual Report 2002, UCBL.

Fig -4.2 Foreign Exchange Business Import
The Bar Chart shows that the bank has an increased operation in letters of
credit (L.C) issuing business. The L.C processing operation is also
increased. The bank has established 8761 Letters of Credit for import worth
Tk.14975.3million during the year 2002.
The UCBL import business process includes:
Opening of letter of credit (L/C), through the following ways:
A clause authorizing the beneficiary to draw bills of exchange up to certain
on the opener.
List of shipping documents, which are to accompany the bills.
Description of the goods to be shipped.
An undertaking by the opening bank that bills drawn in accordance with the
conditions will be dully honored.
Instructs to the negotiating banks for obtaining reimbursement of payments
under the credit.
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Advance bills.
Bills for collection.
Import loan and guarantees.
Remittances are processed here by:
Issue of DD, MT, TT etc.
Payment of DD, MT, TT etc.
Issue and enhancement of travelers cheque.
Sale and enhancement of foreign currency notes.
Non-resident accounts.
Export Business:
The total export business handled by the United Commercial Bank Limited
was Tk.5, 620.90 million during the year 2002.

Source Annual Report 2002, UCBL

Fig-4.3 Foreign Exchange Business Export
The above bar chart is the reflection of UCBLs export business. It reveals
that UCBLs export business is increasing from the year 1998 to 2000. In
1998, UCBLs export volume was 5,192.40 million taka and in year 2000 it
was 7,178.90 million taka. This shows that there was an increase of export
business in 2000, but after 2000-export business of UCBL declining. How
ever the amount of export business transaction by the business seems good
on the whole.
Export Procedure:
15

The Import and Export trades in our country are regulated by imports and
exports (control) Act, 1950. Under the Export Policy of Bangladesh, the
exporter has to get the valid Export Registration Certificate (ERC) from
chief controller of Import & Export (CCI & E). The ERC is required to
renew every year. The ERC number is to be incorporated on EXP Forms and
other papers connected with exports.
Foreign Remittance:
Foreign Remittance handled by the bank stood at taka 735.00 million during
the year 2002. Countries from which inward foreign remittances were
received included USA, UK, Canada, Denmark etc.

Source Annual Report 2002, UCBL

Fig-4.4 Foreign Exchange Business Remittance
The above Bar Chart shows that the foreign remittance has increased over
the year and compare with the five year back 1998, the amount of remittance
is all most double in the year 2002.As the amount is Tk.735 million in the
year 2002 and in the year 1998 it was Tk. 400 million.
The UCBL process two type of remittance, these are
Foreign inward remittance and
Foreign outward remittance.
Inward Remittance: The remittances, which are received from abroad, are
called inward remittance.
In general, purposes of inward remittances are
Family maintenance.
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Indenting commission.
Donation.
Foreign investment.
Export proceeds.
Modes of inward remittance are
TeleBar Chatric Transfer (TT)
Mail transfer (MT)
Foreign Demand Draft (FDD)
Payment order (PO)
Travelers cheque (TC)
Foreign Currency Notes.
Outward Remittance: Remittances, which are made from our country to
abroad, is called outward remittance.
Modes of outward remittance are
Foreign TeleBar Chatric Transfer (FTT)
Foreign Mail Transfer (FMT)
Foreign Demand Draft (FDD)
Travelers Cheque (TC)
Foreign Currency Notes.
A view of Import, Export & Foreign Remittances: At a glance.
Year

Import

Export

1998
1999
2000
2001
2002

13,049.90
14,150.90
12,534.40
13,132.90
14,975.30

5,192.40
5,616.50
7,178.90
5,309.30
5,620.90

17

Foreign Remittance
Amount Tk. In
Million
480.00
520.00
600.00
628.00
735.00

Fig -4.5 At a glance Import, Export & Foreign Remittances

18