Internship Report on Uttara Bank Limited

Executive Summary

This internship report is a partial requirement for the Bachelor of Business Administration program. The report is based on working experience on Uttara Bank Limited (UBL). I was assigned in the Mugdapara Branch, Dhaka of Uttara Bank Ltd. This report gives a clear idea of evaluating the performance of Uttara Bank Limited. The data has been collected from primary and secondary source. Primary sources are group discussion, practical work experience, case study. Secondary sources are library, several books, and periodicals related to the banking sector, Bangladesh bank report, different circular sent by the head office and Annual report of Uttara Bank Limited (UBL).

The report consists of six chapters. The first chapter describes the introducing matters of a formal report which includes origin, background, objectives, methodology, scope and limitations etc. The second chapter includes some definitions which are cash, capital reserves, capital adequacy, deposits, investment, import & export, remittance, return on assets, return on equity, earnings per share, assets, liabilities, gross profit, net profit, and debentures. It is also includes some theoretical matters these are; regulations and supervision of Bangladesh Bank for banking sector, regulatory policies & acts, the bank examination process, risk-based capital adequacy, loan classification and provisioning and provisioning, qualitative criteria, provisioning requirements, actions of Bangladesh on problem banks and weak economy and need for financial sector reform. The third chapter describes the overview of Uttara Bank Limited which are includes; background of the bank, Board of directors, vision and mission of the bank, products & services, operational areas, capital & reserves, profitability position of the bank, total asset position of the bank and total liability & shareholder equity position of the bank. The fourth chapter of the report is performance evaluation of the Uttara Bank Limited which are provides cash, share capital, reserve funds, deposit, investment, import & export, foreign remittance. Human resource and training, all of these matters are very much influence to evaluate the performance of UBL. The fifth chapter is the analysis and finding of the report which provides; analysis related with performance evaluation of UBL and also include SWOT analysis and findings, of the Uttara Bank Limited. The working environment  of UBL is very conductive and friendly. The staffs are specialized in their respective fields. Each of them works on their own and there is close supervision from the top. The motivation of the employees comes from the very sense of responsibility. The sixth chapter ends up the report with complementary conclusion & recommendation with all analysis and judgment, I have tried to evaluate the performance of Uttara Bank Limited with my practical experience. I express my heartiest gratitude to all the parties related to make the work done.


Origin Of The Study:

As a prerequisite for the Bachelor of Business Administration Degree of the Stamford University Bangladesh, I was required to complete an internship in suitable business organization and submit a report on my findings. I had been selected to work as an internee in Uttara Bank Limited, Mugdapara Branch for a period of three months from June to 2010 August, 2010. Md. Maksudul Hasan, Deputy General Manager, HR division, Head office, Uttara Bank Limited appointed me as an Internee. After discussion and getting consent, I started to work on the topic titled “Performance Evaluation of Uttara Bank Limited”.

Without any practical exposure, theory can never be fruitful. For this BBA program has been designed in such a way that a student can get practical knowledge. A student needs to go for practical orientation in some organization where his/her duty is to bear all the some from operations and activities of that branch.

This internship report is generated under the supervision of Rumana Afroze, internship supervisor, lecturer of Bachelor of Business Administration, Stamford University Bangladesh.

Background of the Study:

Banking sector is a very curtail part of a country. It plays a very much important role in the economy and always tries to make a sign on the economy. This institution is responsible for the financial stability of a country. Due to globalization of the market, all the industries have to face the competition. The foreign banks come in to the local market and the local banks have to fight most to gain the market share. And the present developing economy of Bangladesh demands immediate development of financial institutions which can make a good step to build up a strong economic infrastructure. In this view the banks have to drive their operation in such way which can make a contribution on the economy. And make a contribution into the economy; banks need efficient personnel with modern banking knowledge to improve their performance day by day. This report has been prepared in the light of this view to gather practical knowledge and prepared under the guidance and supervision of the internship supervisor.

Objective of the Study:

There are several types of objectives involve here for this study. The objectives of studies are :

General Objective:

The general objective is to prepare and submit a report on the topic of “Performance Evaluation of Uttara Bank Limited”.

Specific Objective:

         To analyze the bank’s overall performance.

         To evaluate their strength and weaknesses regarding banking sector.

         To justify their way of banking in our country.

         To overview the whole operation at a glance.

         To compare the Uttara Bank Limited with some other private commercial banks.

         To illustrate bank’s Liquidity and capital reservation with special reference to the annual report.

         To clarify the disbursement, advances and classified loans.

         To know the contribution of GDP towards Bangladesh economy.

         To state the major drawbacks and the way of improvement.

         To know the proper utilization of resources those are available in our economy.

Methodology of the Study:

The planned methodology of the study is given below:

Sources of data :

Data regarding the completion of this research will be collected from both primary and secondary sources.

Primary Sources:

The sources are as follows Face-to-face conversation with the Executives and officers of Bank.

(i)            Practical work exposures from the different desks.

(ii)          Face to face conversation with the client.

(iii)         Personal observations.

(iv)         Relevant file study as provided by the officers concerned.

(v)          Discussion with my bank’s advisor.

Secondary Sources:

The secondary sources data and information are:

(i)            Annual Report of Uttara Bank Limited

(ii)          Publication’s of Bangladesh Bank.

(iii)         Newspapers.

(iv)         Website information.

 Scope of the Study:

Uttara Bank Limited is one of the traditional bank of Bangladesh. The scope of the study covers the organizational overview and structure, background, objectives, basic functions, capital and reserves, investments, and performance analysis of the bank. With a view to completing the whole report, it was required to concentrate on the overall performance analysis of the banking sector. However, in this report, the presentation of the five years at a glance, products and services, export and import, foreign remittance, total asset position, total liability & shareholder equity and also different analysis & comparison are showed to evaluate the performance of the bank.

Limitation of the Study:   

To prepare this report, I have faced some limitations, which are mentioned in the fallows :

        Time Limitation

The main and the first constraints is time that hinder to cover all aspect of the study. In three month’s it is not possible to cover learning  about any bank properly and also going to write a report on this.

Lack of data:

If anyone can wise than he can gather primary date to the bank’s employees. But this data is not proper for writing a report. Secondary data is also very rears. It is just only the annual report and the website.

Limitation of scope:

While collecting data, the authority did not disclose much information due to the confidentially of the bank.

Personal Limitation:

Bank policy was not disclosing some data and information, for obvious reasons.


Theoretical Framework

Theoretical Framework

Cash :

Funds on hand or in a bank.

Capital :

The inputs, such as tools, machinery, equipment and buildings, used to produce goods and services and get them to the customer.


A fund or things that which is kept for future use.

Capital Adequacy:

Capital Adequacy indicates the equity base with respect to risk weighted assets derived from both on and off balance sheet activities of the bank.


 A sum of money stored in a firm, not to be withdrawn without notice.


The commitment of funds to one or more assets that will be held over some future time period. It is concerned with the management of an investor’s wealth, which is the sum of current income and the present value of all future income.


Goods and services produced in one country and bought in by another country.


Goods and services produced by a firm in one country and then sent to another country.


The sending of money to a distance.

Return on Assets (ROA):

The accounting rate of return on a firms assets.

Return on Equity (ROE):

The accounting rate of return on stockholders equity. Another definition of ROE is the ratio of net profit to total owner’s equity; measures the return that owner’s receive on their investment in the firm.

Retained Earnings:

The amounts left over from profitable operations since the firm’s beginning; equal to total profits minus all dividends paid to stockholders. Another definition is, profits that have been reinvested in a firm.

Earning Per share (EPS):

The ratio of net profit to the number of share of common stock outstanding; measures the number of dollar’s earned by each share of stock.

 Assets :

Things of value owned by a firm.


What a firm owes to its creditors.


A form of business financing consisting of funds raised through the sale of stock (ownership) in a business.

Gross profit:

The amount  a company earns after paying to produce or but its products but before deducting operating expenses.

 Net profit (Net Income):

The amount obtained by subtracting all of a firms expenses from its revenues when the revenues are more than the expenses.


Unsecured bonds that are backed only by the reputation of the issuer and its promise to pay the principal and interest when due.

 Regulations and Supervision of Bangladesh Bank for Banking Sector

 Bangladesh Bank Regulatory Framework for Commercial Banks and  Bank Supervision

The supervisory process is, in large part, a consultative one, which relies on frank and open discussions between banks and the Bank Supervision Department of the Central Bank, The nature of the process reflects the Central Bank’s stated philosophies that bank management are responsible for the prudent conduct of the institutions.

The process of bank supervision takes two forms: One is the regulatory 01 monitoring process, while the other is on-site inspection or bank examination process. Bank regulation usually deals with the formulation and implementation of specific rules and regulations for the conduct of the banking business, including the monitoring of the compliance with such rules. Bank examination, on the other hand, ensures compliance with the rules and regulations and assesses the soundness of the individual financial institutions.

Besides on-site supervision, Bangladesh Bank has also introduced offsite supervision of the banks. Some key indicators such as capital, liquidity, deposit, loan portfolio, asset quality, profitability etc. are calculated on the basis of the off-site supervision. For this purpose, Bangladesh Bank has introduced a number of reporting forms and returns to be submitted by the commercial banks regularly.

Regulatory Policies and Acts

Bangladesh Bank (BB) as the central bank has legal authority to supervise and regulate all the banks. It formulates and implements monetary policy, manages foreign exchange reserves and supervises banks and non-bank financial institutions. Its prudential regulations include: minimum capital requirements, limits on loan concentration and insider borrowing and guidelines for asset classification and income recognition, liquidity requirement etc. BB has the power to impose penalties for since and also to intervene in management of a bank if serious problems arise, ft also has the delegated authority of issuing policy directives regarding the foreign exchange regime.

Bangladesh regulatory and supervision process is guided by the “Bangladesh Bank Order 1972” (President’s Order No, 127 of 1972) that was promulgated after independence of Bangladesh, measures taken and implemented under “Financial Sector Reforms Program” (FSRP) of 1989, Artho Rin Adalat Act 1990, “Bank Company Act 1991” and Bankruptcy Act 1997. The regulatory and supervision policies and guidelines issued by the Central Bank on the basis of above order/acts for bank supervision will be discussed next.

 The  Bank  Examination  Process

In general, the examination process involves frequent on-site examination of bank operations to ascertain that the bank is operating in a sound manner, to determine the accuracy of financial reports to the regulator and the public and to ascertain compliance with the laws and regulations. Bank examinations are usually conducted on a surprise basis and at a random, on either selected branches or aspects of the operations of a bank. Most bank examination activities covers the following:

(i)         Determine financial position of bank and quality of operations. This includes assets and cash counts, verification of internal control procedures, their documentation and compliance.

(ii)       Assessment of management quality. Covers integrity, training and experience level of bank stuff, monitoring how tightly the Board supervises management, adequacy of staff and staff training, management succession and dual controls.

(iii)       Ascertain compliance with laws and regulations. Includes tests of documentation and compliance with laid down laws and procedures.

(iv)      Testing accuracy of books, accounts and records. Verifies that transactions are properly and accurately documented and that audit trails and authorizations are properly maintained.

(v)   Verification of asset quality. This includes a complete review of credit policy laid down by the Board to cover areas such as:

                    Proportion of loans to sectors and individuals.

                     Types of securities acceptable to the bank.

                     Procedures to be followed in valuation.

                     Margin of advance.

                     Credit appraisal methodology.

                    Credit monitoring and recovery.

(vi) Assessing solvency of bank. After if provisions have been made, the solvency of the bank would be assessed, and the truth and fairness of the financial statements of the bank commented on.

  Risk-Based Capital Adequacy

Capital is an important internal insurance to cover losses of loans, and, hence, capital adequacy is a measure of soundness and financial health of a bank, which deserves much importance in current competitive and innovative banking to command credibility with bankers and customers at home and abroad. Bangladesh Bank announced Risk Weighted Capital adequacy system on the basis of the recommendation of the Bank for International Settlement (BIS), Basle, Switzerland where banks were advised to report at the end of June, 1996, their capital ratios together with summary information about components on a risk assessed basis.

Loan Classification and Provisioning

There is always a requirement for banks to systematically and realistically identify their problem assets and provide adequate reserves for possible losses. To accomplish this Bangladesh Bank issued guidelines in 1989, a revised policy was Introduced In 1994. The objective introduction of this program was to aim at bringing loan loss provisioning and classification in fine with the international standard by the end of 1 998.

Loan classification is the act of grouping or arranging of loans and advances according to their status like unclassified, substandard, doubtful and bad/loss based on given criteria. Provisioning means setting aside certain fund from current year profit against possible   loan   losses.   In   Bangladesh,   Bangladesh   Bank   prescribes   the loan classification and provisioning criteria through BRPD circular.

 Qualitative Criteria

Sometimes a loan (continuous or demand or fixed term) may not be classified according to the rules of Objective Criteria of loan classification. But such loan will be classified on the basis of qualitative judgment when there is any uncertainty/doubt involved with the realization of loan. Basis for classifying loan are given below:

  • If the factors change which were considered at the time of sanctioning the loan; or
  • Erosion of capital of the borrowers due to adverse situation; or
  • If the value of the security declines; or
  • It the uncertainly of loan realization arises due to any adverse situation.



If it is expected that due to above mentioned reasons for any other reason there is a possibility to impair the value of loan but there is a reasonable prospect that the loan’s condition could be improved it proper steps are taken.Substandard
If it is expected that it be unlikely to recover the full amount of loan by taking all steps properly.If it is expected that is very unlikely to recover the loan even wholehearted efforts are taken.Doubtful 


Provisioning Requirements

Banks are required to make provision against classified continuous, demand and fixed term loans, short term agricultural and micro-credit and also unclassified loans to cover the possible loan loss.

Classification Status

Continuous, Demand & Term Loan

Short-term Agricultural & Micro-credit

Unclassified (UC)



Substandard (SS)



Doubtful (DF)



Bad/Loss (B/L)



 The computational methods for provisioning requirements are as follows:

•              Base for Provision = [Outstanding Balance – (Value of Eligible Securities +
Balance of Interest Suspense)]

•              Required Provision = (Base for Provision x Rate of provision)

Actions of Bangladesh on Problem Banks

Bangladesh Bank has undertaken a time bound special program for the problem banks- One of the objectives of these special programs is to involve the members of the Board of Directors of banks in the rescue efforts. The reasons for involving the board is to firstly, create pressure on the respective directors to repay those loans where they had interest and secondly, to make them accountable for the consequences of the activities in the board. Therefore, at the beginning of the program the Chairman and Managing Director of the board were summoned to the Bangladesh Bank and were informed about the concern of the central bank regarding the overall financial affairs of the respective banks. Later, the directors of these banks were required to sign Memorandum of Agreement (MOA). In MOAS a time bound target in every aspects of financial health like capital, provision shortfalls, profitability etc were spelled out and the boards were entrusted with the responsibility of attaining those targets. Besides,

Some other restrictions regarding large loan and cost reduction were imposed on these banks. At the some time, Bangladesh Bank tightened its supervision of these banks. However, considering the outcomes of their efforts and the progress of these banks in achieving their targets, the time frame of the targets of MOA were revised time to time.

The monitoring efforts of Bangladesh Bank were intensified in order to observe these banks’ action plan implementation of attaining the target and various other measures were taken to ensure the implementation of the MOA, Bangladesh Bank appointed observer In the boards of these banks in order to oversee the proceedings of the board. Observers were to submit report on each of the meeting to the supervisory authority to help take necessary actions on the basis of these reports. A separate inspection division was created in the Department of Banking Inspection named Problem Bank Division, At present this division has been downsized into a small department under Inspection Division. The major functions of the Bangladesh Banks are:

•           Monitoring of MOA.

•           Advise problem banks to identify problem areas of to help taking them corrective measures.

•           Arrange quarterly meetings with the banks.

           Monitoring the proceedings of different committees of the banks.

           Monitoring the quality of new loans which were given after signing  the MOA.

           Conducting special program on those branches that have disbursed more than Taka 10 crores after signing the MOA.

•           Compliance of the off-site and on-site supervision report. Monitoring the loans of large 50 defaulters,   Monitoring large loans etc.

Weak Economy and Need for Financial Sector Reform

At the juncture of the country’s financial distress, Financial Sector Reform Program (FSRP) was launched in 1990. Prior to that, more objective loan classification and provisioning policy guidelines were implemented (issued vide BCD circular 34/89) which mandated the commercial banks to categorize their assets according to their risk of default and arrange provisioning for classified loans at prescribed rates. Off-Site and On-Site supervisory control was tightened against the commercial banks and their activities were continuously monitored. Bangladesh Bank adopted Bank Score Card system to monitor the performance of the banks and issue warnings for improvement of financial condition. Despite persuasion, when the banks, namely Pubali Bank, City Bank, National Credit and Commerce Bank, United Commercial Bank and National Bank failed to achieve required performance, Bangladesh Bank listed them as problem banks.


Overview of Uttara Bank Limited

 Historical Background of UBL

Uttara Bank Ltd. has been a nationalized bank in the name of Uttara Bank under the Bangladesh Bank (Nationalization) order 1972, formally known as Eastern Banking Corporation Limited.

  Uttara Bank ltd. started functioning from 28.01.1965

  Consequent upon the amendment of Bangladesh Bank (Nationalization) order 1972

  Uttara Bank ltd. converted into Uttara Bank ltd. as a public limited company in the year 1983 and obtained business commencement certificate on 21.08.1983.

  Uttara Bank ltd. floated its shares in the year 1984.

  Uttara Bank ltd. has 207 branches all over Bangladesh

  The bank is listed in the Dhaka Stock Exchange Ltd. and also in Chittagong Dhaka Stock Exchange Ltd.

  It publicly quoted company for trading of its shears.

  The registered office of the Bank is located in 47, Bir Uttom Shahid Ashfaq-us-samad Road (90, Motijheel Commercial Area), P.O. Box No. 217 & 818 Dhaka-1000, Bangladesh.

Uttara Bank is one of the largest and oldest private-sector commercial bank in Bangladesh, with years of experience. Adaptation of modern technology both in terms of equipment and banking practice ensures efficient service to clients. 207 branches at home and 600 affiliates worldwide create efficient networking and reach capability. Uttara is a bank that serves both clients and country.

UBL is one of the largest private banks in Bangladesh.

  It operates through 207 fully computerized branches ensuring best possible and fastest services to its valued clients.

  The bank has more than 600 foreign correspondents worldwide.

  Total number of employees nearly 3600.

  The Board of Directors consists of 15 members.

  The bank is headed by the Managing Director who is the Chief Executive Officer.

The Head Office is located at Bank’s own 18-storied building at Motijheel, the commercial center of the capital, Dhaka.

Board of Directors:

Table: 3.1 Board of directors of UBL

Mr. Azharul IslamChairman
Mr. Iftekharul IslamVice- Chairman
Mr. Shamsuddin AhmedManaging Director
Mr. Shah Habibul HaqueDirector
Mr. Abul Bareq Alvi Director
Mr. faruque Alamgir Director
Col. Engr.M.S.Kamal (Retd)Independent Director
Mr. Syed A. N. M. WahedDirector
Mr. Sk. AmanullahDirector
Major General Prof. M. A. Mohaiemen (Retd)Director
Dr. Md. Rezaul Karim MazumderDirector
Lt. Col. Dewan Zahedur Rahman (Retd)Director
Engr. Tofazzal HossainDirector
Mr. Mohammed FarooqDepositor Director
Mr. Muhammad Quanrul AhsanDepositor Director

Vision of the UBL

To become a leading banking institution which play a pivotal role in the development of the country

 Mission of the UBL

i)             Continuous improvement in our business policies.

ii)            Cost reduction integration of the technology at all level.

Hierarchy of UBL:



Board of Directors


Managing Directors


Additional Managing Directors


Deputy Managing Directors


General Manager


Deputy General Manager


Assistant General Manager


Senior Principal Officer


Principal Officer


Officer Grade-1


Officer Grade-2


Assistant Officer

 Products and Services:

The bank not only the traditional banking products and services but also some tailor made products in liabilities and assets monthly savings scheme and double benefit scheme etc. for deposit mobilization in one hand and consumer credit scheme, lease finance, person loan, Uttara house repairing and renovation scheme and SME financing in another hand, besides, the bank has also some electro-banking products based on information technology of which Q-cash UBL ATM Debit card is worth mentioning of providing 24 hours services to customers.

Bank Operational Area:

Uttara Bank operation has achieved the confidence of its customers with sound fundamentals in respect of deposit accumulation, loans and advances, import and export business, remittance business and profitability. As a result the bank has been able to earn remarkable profit in business. Overall performance of Uttara Bank limited has been improved for maintaining effective and constructive principles of Bangladesh Bank. Uttara bank operation in different area, which are given below,

    General Banking

    Foreign Exchange

    Loan & Advance

    International Banking

    Corporate Banking  

 Branches of the UBL

Uttara Bank Limited is one of the largest and oldest private Commercial Bank of Bangladesh. The Bank formally known as the Eastern Banking Corporation Limited which started Journey on from 28/01/1965. From that period of time, it has been expanding its operation with years of experience to serve the clients as well as the country. Now with 211 branches it has created strong network in Bangladesh. Besides, to create a strong connection with the globe 600 affiliates are active to support the Bank. Now I provide branches of Uttara bank according to division, which are given below;

Capital & Reserves of UBL


Cash in stood at TK 1,341.4 million in 2009 which is lower than that of the previous year and the same amounted to TK 1,585.5 million in 2008.

Share Capital

The Authorized Capital of the Bank remained at tk 1600.00 to Tk.3200.00 million during the year 2009. The paid up capital of the Bank has been increased to TK 1597.4 million from TK 798.7 million due to declaration of 100% bonus share for 2009. The total number of shareholders was 15973184. The Government of the Peoples Republic of Bangladesh, eighteen Banks and fifty two financial institutions held total 676397 shares worth Tk. 67639700.00 and remaining 42499 private shareholders held total 15,296,787 shares worth Tk. 1,529,678,700.00. The total equity of shareholders of the Bank at end of the year 2009 stood at Tk.6,206.9 million and in 2008 stood at Tk. 3688.8  million.

Reserve Fund

The reserve fund of the bank increased to TK 4,609.6 million during the year by registering 59.49  percent increase over last years Tk. 2,890.2 million.


Performance Evaluation of UBL

Performance Evaluation of Uttara Bank Ltd.

Uttara Bank’s operation has achieved the confidence of its customer with sound fundamentals in respect of deposit accumulation; loans & Advance, Import & Export business, remittance business and profitability. As a result the bank has been able to earn remarkable profit in business. Overall performance of Uttara Bank Limited has been improved for maintaining effective and constructive principle of Bangladesh Bank.


Cash in stood at TK 1,341.4 million in 2009 which is lower than that of the previous year and the same amounted to TK 1,585.5 million in 2008.

 Share Capital

The Authorized Capital of the Bank remained at Tk 1600.00 to Tk.3200.00 million during the year 2009. The paid up capital of the Bank has been increased to TK 1597.4 million from TK 798.7 million due to declaration of 100% bonus share for 2009. The total number of shareholders was 15973184. The Government of the Peoples Republic of Bangladesh, eighteen Banks and fifty two financial institutions held total 676397 shares worth Tk. 67639700.00 and remaining 42499 private shareholders held total 15,296,787 shares worth Tk. 1,529,678,700.00. The total equity of shareholders of the Bank at end of the year 2009 stood at Tk.6,206.9 million and in 2008 stood at Tk. 3688.8  million.

 Reserve Fund

The reserve fund of the bank increased to TK 4,609.6 million during the year by registering 59.49  percent increase over last years Tk. 2,890.2 million.

FIGURE 4.1: Authorized capital, Paid-up-Capital, Reserved fund & other Reserves

 Capital Adequacy

As per guidelines of Bangladesh Bank, the Bank adopted BIS (Bank for International Settlement) risk adjusted capital standard to measure capital adequacy. Capital adequacy indicates the equity base with respect to risk weighted assets derived from both on and off balance sheet activities of the bank.. At the end of the year 2009, the actual capital of the bank stood at Tk 5,829.0 million against required capital of Tk 3,688.2 million on the basis of tier-1 and tier -2 showing surplus capital of Tk 2,140.8 million. Risk weighted assets increased by Tk 2,677.8 million and stood at Tk 36,882.4  million in  2009 mainly due to increase in loans and advances.. The capital adequacy rate of the Bank stood at 15.91 percent against required 10.0 percent as fixed by Bangladesh bank, which is indicative of the sound capital base of the bank.


The Bank’s principle source of fund was deposit. The Bank deposit stood at Tk 59,387.3 million as on December, 2009 compared to Tk 50,817.0 million in 2008, thus recording 16.87 % growth. Competitive interest rates, attractive deposit products, deposit mobilization efforts of the Bank and confidence reposed by the customer in the Bank contributed to the notable growth in deposit. The Bank evolved a number of attractive deposit scheme to cater to the requirement of small and medium savers.


The total investment during the year 2009 were mostly in government Securities which stood at TK 22,344.1 million as against TK 11,091.8 million making a growth of 101.44 percent over the last year. The Uttara Bank Limited is primary dealer of Government securities. The Bank as a primary dealer is purchase the unsold Bond/ Bill which are put to auction in order to keep underwriting commitment. As a result the investment in Bond and Treasury bill increased. Besides one of the investment activities of the Bank was maintenance of statutory Liquidity Reserve which mainly comprise Government Treasury Bond and Treasury bill of different terms, National prize Bond, Government Approved Debenture and ICB shares. The Bank invested total Tk. 22,502.5 million in 2009 as compared to TK 11,188.8 million of the previous year.

 Investment in treasury bonds and others securities

Utilization of surplus fund was a major function of Treasury Department. Due to decline of surplus fund against previous year the entire Investment of the Bank stood at Tk. 22,502.5 million at the close of the year 2009. Mentionable that Bank has been able to increase Loans and Advance in Small Business as well as different sector by reducing investment.

Bank was maintenance of “Statutory Liquidity reserve” which generally compromise of Govt. Treasury Bills and Bonds (HTM) of various tenures, National Prize Bonds and

Govt. approved Debenture. The shares of Govt. Securities were amounted to Tk. 22,344.1 million in total Investment, which was 11,091.8 million in the previous year.

 Human Resources and Training

Skilled and motivated staff plays a vital role in achieving top performance. Knowledge and skill development is a continuous process and to keep our employees abreast of the latest developments in the banking sector, the Bank continuous to organize various training programmers and workshops.

The Bank’s own Training Institute is nicely decorated and equipped with the sophisticated instrument has been striving to bring about a qualitative change and improvement in human resources of the bank by imparting continuous different training throughout the whole year. Guest speaker specialized in banking participate in each training program of the bank excluding highly educated faculty members of the institute. Besides, a number of executives and officers were sent to various training institution including Bangladesh Institute of Bank Management (BIBM), and abroad for higher training.

Table: 4.2 The total manpower of the bank in different grades as on 31.12.2009 was under:

1.Executives (Assistant General Manager & Above)2. Officers

3.Assistant Officers

4. Others







Total: 3,291100.00%


Import Trade of Bangladesh is controlled under the Import & Export control Act 1950. Authorized Dealer Banks will import the goods into Bangladesh following import policy, public notice, F.E circular & other instructions from competent authorities from time to time. Goods are being imported for personal use, commercial purpose or industrial use.

 Import Procedures

Registration of importer: In terms of the importers, Exporters and Indenters order, 1981 no person can import goods into Bangladesh unless he is registered with the Chief Controller of Import & Export from the provisions of the said order. Only commercial & industrial importer must have registration from CCI & E.

To obtain import Registration certificate (IRC), the applicant will submit the following paper/documents to the CCI & E through this nominated Bank.

  Questionnaire duly filled in & signed by applicant.

  Trade license.

  Membership certificate from chamber of commerce or any other trade Association.

  Nationality certificate.

  Income tax registration certificate.

  Partnership deed/Certificate of registration with the register of joint stock companies where applicable.

On being satisfied the CCI & E issues IRC obtaining original copy of treasury Challan for payment of registration fee

Import Policy: At the beginning of each financial year, the Chief Controller of Imports and Exports announces the Import policy covering various aspects of imports in the coming year. The main points covered by the Import Policy are the following:

  Items eligible for imports during the shipping period.

  Items importable against – Cash foreign Exchange, Foreign aid and barter, Wages Earners Scheme.

  The Procedure for induction of new comers into the import trade.

  The procedure for imports by industrial consumers and commercial importers and for import under Wages Earners scheme.

  Procedure for formation of groups.

  The procedure for submission of application for Repeat License.

  The dates for opening Letter of Credit, and shipment and the rules for revalidation of the License/LCA and the L/C.


Export means law fully carrying out any thing from one country to another country for sale. No person can export anything from Bangladesh, unless he is registered with the CCI & E, under the registration order 1952.

 Legal Requirements

Although payment aspects of export are Bangladesh Bank’s concern, the Export policy Order announced by the Ministry of Commerce controls physical aspects.

Bangladesh has set out elaborate procedure and laid down detailed rules and regulations concerning Export and Export payments. All exports, to which the requirement of declaration applies, must be declared on the EXP form. The branch should before certifying any export form, consider and take notice of the following:

  The intended exporter shall have valid Export registration Certificate.

  Payment for goods exporter from Bangladesh should be received through the branch in freely convertible foreign currency or in Taka form a non-resident Taka account of a bank branch or correspondent abroad.

  Commission, brokerage and other trade charge are admissible only up to a maximum of 5% the value of goods. The charges beyond 5% may be admissible subject to prior approval of the Bangladesh Bank.

  In respect of export of goods by land route or by sea, the Bill of Lading, Railway Receipts, and other documents of title to cargo should be drawn only to the order of DHAKA Bank Ltd.

In respect of export goods by air, the Airway Bill and any other documents of title to cargo should be drawn the order of a bank in the country of import nominated by the bank

 Foreign Remittance

UTTARA BANK LTD Foreign Exchange Branch has no authority to open FCA. This Branch is depended on Dhaka Main Branch. Convertibility of Taka in current account transactions symbolized a turning point in the country’s exchange management and exchange rate system. Now the operations of foreign currency accounts have been more liberalized. Funds from these A/Cs are freely remittable to any county according to the needs of A/C holder. Foreign Remittance is classified into two way-Outward Remittance and Inward Remittance.

Outward Remittance

On March 24, 1994 Bangladesh Taka was declared convertible for current account international transaction. As a result remittance becomes more liberalized. Outward remittance include sale of Foreign Currency by T.T, M.T, Draft, T.C or in cash for private, official and commercial purpose.

Present Limit for outward Remittance:

A) Private Remittance

1. Family Maintenance:

  Foreign nationals working in Bangladesh may remit 50% of salary and 100% of leave salary as also actual saving and admissible pension benefits for their family maintenance.

  Moderate amount of Foreign Currency for maintenance abroad of family members (spouse, children, parents) of Bangladesh nationals are allowed.

2. Member ship/Registration fees etc.: ADS are allowed to remit membership fees of foreign professional and scientific institutions and fees for application, registration, admission, examinations in connection with admission into foreign education institute, supported by demand notice letter of the concerned institution.

3. Education:  ADS may release foreign exchange favoring Bangladeshi students studying abroad or willing to proceed abroad for study according to the following drill:

  Application by the student as per prescribed formant.

  Admission letter issued by the concerned institution.

  Estimate relating to Tuition Fee, Lodging and Incidental Expenses issued by the concerned institution.

  Attested copies of Education Certificates.

  Valid passport.

4. Travel: Private travel quota entitlement of Bangladesh national is set at USD 3000 per year for visit to countries other than SARC member countries and Myanmar. Quota for SARC member countries and Myanmar is USD 1000 for travel by Air and USD 500 for travel by Overland route.

5. Health & Medical: The ADS may release up-to USD 10,000 for Medical Treatment abroad on the basis of the recommendation of the Medical Board.

6. Foreign Nationals: The ADS may issue T.C to foreign nationals without any limit & currency notes up-to USD 300 against surrender of equivalent Foreign Currency.

7. Remittance for Hajj: ADS may release F.C to the intending pilgrims as per instructions circular to be issued by the Bangladesh bank each year.

Inward Remittance

The term inward remittance includes not only purchase of Foreign Currency by TT.MT. Draft etc. but also purchase of Bills, purchase of Traveler’s Cheque. Utmost care should be taken while purchasing currency, Notes, T.C, DD, & similar instrument for protecting the Bank from probable loss as well as safety of the Bank officials concerned.

 Five Years at a Glance

(Figure in million)

SL. No.   Particulars







Income Statement







Gross Income







Gross Expenditure







Gross Profit







Pre-tax profit







Post-tax profit







Balance Sheet


Authorized capital














Reserve fund and other reserves







Shareholders equity




























Guarantee business







Export business







Import business







Foreign remittance







Fixed assets







Total assets







Classified loans and advances







Total off balance sheet exposures







BIS Capital Measures







Required Capital







Actual Capital







Credit Quality


Required Provision







Provision Maintain







Required Provision off balance sheet exposure







Provision Maintain







Share Information


Income per share







Market value per share







Price earning ratio







Book value per share







Operating performance Ratio


Advance-Deposit ratio







Total Advance/ Class. Advance







Total Adv. Class. Advance







Income from equity







Income from Assets







Other Information


Number of shareholders







Number of Branches







Number of Employees







Human Resources Development







Analysis & Findings


Return On Assets of Uttara Bank from Year 2005 to 2009













Figure1 5.1: ROA from 2005 to 2009


From the graph we can see that the value of return on assets of Uttara Bank Ltd. was increased in 2005 to 2006 and the value of return of assets was decreased in 2007 to 2008 than previous year. In 2009 the value of return on assets was increased than previous all year.

Return On Equity Uttara Bank Limited from Year 2005 to 2009













Figure-5.2: ROE from 2005 to 2009


The value Return on Equity of Uttara Bank Limited was same in 2005 and 2006. The value of ROE was decreased in 2007 to 2008 from previous year and ROE dramatically increased in 2009 from all previous year.

 Operating Income To Assets Uttara Bank Limited from Year 2005 to 2009













Figure-5.3: OIA from 2005 to 2009


The value operating income to assets of Uttara Bank Limited was 0.066 in 2005. It was decreased in 2006 and remains constant in 2007. OIA was increased in 2008 and in 2009 it was decreased.

Provision To Earning Assets of  Uttara Bank Limited from Year 2005 to 2009













Figure 5.4: PEA from 2005 to 2009


The value of provision to earning assets of Uttara Bank Limited was increased from 2005 to 2006. But the value was dramatically decreased in 2007 from previous two years. After that the value was increased in 2009 from previous year.

 Cash To Assets of Uttara Bank Limited from Year 2005 to 2009













Figure 5.5: CTA from 2005 to 2009


The value of cash to assets of Uttara Bank Limited was same from 2005 to 2006. The value of Cash to Assets increases in 2007 to 2008 from previous year. After that the value was decrease in 2009.

 Retained Earnings To Total Assets of Uttara Bank Limited from Year 2005 to 2009













Figure 5.6: RETA from 2005 to 2009


From the graph we can see that the value of retained earnings to total assets of Uttara Bank Ltd. was increased in 2005 to 2006 and the value of retained earnings to total assets was decreased in 2007 to 2008 than previous year. In 2009 the value of retained earnings to total assets was increased than previous all year.

Total Liabilities To Equity of Uttara Bank Limited from Year 2005 to 2009













Figure 5.7: TLE from 2005 to 2009


The value of Total Liabilities to Equity of Uttara Bank Limited was continuously decreased from 2005 to 2009. So the value of Total Liabilities to Equity of Uttara Bank Limited is not good.

 Total Liabilities To Shareholder Capital of Uttara Bank Limited from

Year 2005 to 2009













Figure 5.8: TLSC from 2005 to 2009


From the graph we can see that the value of Total Liabilities to Shareholder Capital of Uttara Bank Limited was continuously decreased from 2005 to 2009. So the Total Liabilities to Shareholder Capital of Uttara Bank Limited is a loss project.

SWOT Analysis of Uttara Bank Limited


1. Uttara Bank is one of the largest and oldest private-sector commercial bank in Bangladesh,

2. They have over two hundred (207) branch for customer service.

3. The bank has more than 600 foreign correspondents worldwide.

4. They have over 3000 employees’ for ensure best possible and fastest services to its valued clients.

5. Uttara is a bank that serves both clients and country.

6. They have an 18-storied building at Motijheel of their own.

7. Working environment of UBL is such wonderful.


1. There banking system is not fully automation system.

2. There security (Security Camera) system has to improve.

3. There MIS is not so strong.

4. The absence of certain strengths may be viewed as a weakness.

5. They working system is know also manual system.


1. The external environmental analysis may reveal certain new opportunities for profit and growth.

2.  They have a great opportunity of leading banking institution and to play a pivotal role in the development of the country though they have 207 branches.


  1. Compete with the huge number of competitors in the market.
  2. Changes in the external environmental also may present threats to the firm.
  3. Going with new strategy would be risky.


1 Improvement of Security

Now a day’s Uttara bank ltd. is one of the top performer bank in our country. But the security system is very weak. Because they have no security camera in the bank and of course the branch also which is very weak sector of Uttara bank limited.

Improvement of their services

They have to improve their services. Now the entire bank of our country provides such outstanding services like ATM/ On-line banking/ Credit Card/ Debit Card and many others types of services. BRAC bank provides some extra services like ‘Campus account’ Uttara bank have to provide these types of services to the customers.

Disguised Employment

In course of my brief Bank’s career in UBL I found that a good number of employees are not working hour. This work force should be brought under utilization. The skill and experience of this section of employers should be utilized properly in the development of the Bank.

Better Recruitment

Uttara Bank Ltd. must pursue a strong and an effective recruitment system so that the right persons are recruited in the right position (job). Though the bank is expanding, it must focus on attracting, getting and retaining qualified personnel’s for filling the vacant positions.

Disguised Employment

In current situation it would be the major problem of Uttara bank limited. The situation of too many heads but few heads must be eliminated for the future of the bank. In order to enhance the productivity of the work force at Uttara bank limited, the management must have to consider the appropriate amount of work force required and must assess the productivity of each employee. The employees who do not have many things to be done should be relocated or provision should be given to them for voluntarily retirement.

Enhancement of Remuneration

The most important lacking of UBL that have to be improving immediately is Enhancement of remuneration. The current remuneration of Uttara bank limited in very poor, unimpressive and not capable to attract quality personnel to fill up its position. It have to be said that the foreign banks pay double that of Uttara bank limited and other private banks also pay a higher scale of remuneration than Uttara bank limited. It is the time the management should consider revising the remuneration package in order to attract the high quality human resource and of course to retain them in Uttara bank limited.

In course of my brief Bank’s career in UBL I found that a good number of employees are not working hour. This work force should be brought under utilization. The skill and experience of this section of employers should be utilized properly in the development of the Bank.

Conclusion & Recommendation


Banking sector is the chief financial intermediaries in a country. It’s also true for Bangladesh. Uttara bank limited is a very challenging institution. In the age of globalization and free trade, the process and the system of running a bank is changing. UBL (Uttara Bank Ltd.) is continuously managing itself with this changing environment. The company strategies are clean and concise. The return is pretty good. If the company performs this way, we can expect that in near future Uttara bank limited may become one of the top performer in banking sector of our country. They are also able to contribute to our economy in better way. The working environment of the bank is impressive. It was also found that the bank (Branch) is doing better in most of the sectors and their performance is better than average.  However during the year 2008 their investment is not sufficient. The investment during 2008 went down in comparison to that of the previous years.  Finally it can be said that the bank is doing very good in the competitive market and if it can continue to perform this way it can become a leading banking institution which can play a pivotal role in the development of the country.


Before drawing the end I would like to offer the following suggestions for bringing improvements of UBL.

  In general banking department they follow traditional system. The entire general banking system is not fully computerized so an implementation of fully automated system is required.

  They are not using data base networking in information technology (IT) department. So they have to transfer data from branch to branch and branch to head office by using transferable disk. Such as –floppy which are risky?

  The Accounts opening procedure is not easier to the customers, so every branch have to need a separate desk for account opening.


  A Thompson, (2006) “Strategic Management.” USA : Nelson Press, pp. 22-26

  D R Fraser, (2005) “Commercial Banking.” London : George Hoffman, pp. 52-60

  Keith Davis (2007) “Human Resource & Personal Management.” USA : Mc Grow- Hill, pp. 342-350

  Uttara Bank Ltd Annual report 2009

  Uttara Bank Ltd Annual report 2007

  Uttara Bank Ltd Annual report 2005

  Uttara Bank Ltd Process Manual

  Uttara Bank Ltd Employee Tranning Manuals

  Negotiable Instruments Act, 1881

  Bank company Act,1991

  Financial institution Act,1993

  The money laundering prevention,Act,2002

Uttara Bank Limited