To carry out an effective and comprehensive accounting system followed by the management of Uttara bank Ltd. To identify the strengths and weaknesses of the overall operation of the accounting system and monitoring process at Uttara Bank Ltd. Uttara Bank Ltd. is a private bank Ltd, where all types of financial transactions take place.
I have the opportunity to work at the all important desk of Uttara Bank Shyamoli branch. Among the primary sources the main sources are: .. i) Face to face interview of employees of Uttara Bank Ltd. ii) Official Record of Related Part of Uttara Bank Ltd. iii). Direct interaction with the customers.. i) Annual Report of Uttara Bank Ltd. ii) Relevant books of Uttara Bank Ltd. and iii) Uttara Bank Ltd.
Uttara Bank Ltd-one of the largest and oldest private sector commercial banks in Bangladesh.
Deposit Schemes
The account opening form and the signature card must be completed and properly signed. ⮚ Two copies of passport size photographs of the account holder. ⮚ Photocopies of the first 7 pages of the passport duly attested by the remitting bank/exchange companies having drawing arrangement with UBL or Bangladesh Mission abroad. The account opening form and the signature card must be completed and properly signed. ⮚ Two copies of passport size photographs of the account holder duly attested by the sender's bank/embassies. Photocopies of the first 7 pages of the passport duly certified by the remittance bank.
A copy of the nominee's passport size, if any, must be attested by the account holder. Designed to allow one time entry of customer information which can be linked to as many accounts as needed. In the case of a large amount, a seven-day notice is required, but there is flexibility, in fact, the notice is taken for the safety of the depositor.
The signature on the account opening form/card must be the same as the signature on the passport.
3.5) FDR Account (Fixed Deposit.)
Here, interest is given on a daily basis against this type of deposit, but here the interest rate is lower. Many reports are available including, Available box list, Customer waiting list, Current customer waiting list, current customer list, mailing labels, Sheets based on deposit amounts designated by the central bank. 150.00 to 5000.00 (amount set by the Government may change from time to time) is charged annually against the deposit sheets set by the Central Bank.
Govt, Semi-Govt, Autonomous, Non-Governmental Organization (NGO) Public Limited, Private Limited and an individual can open STD account with UBL. Deed of statutes, Deed of Incorporation, Certificate of Incorporation, TIN, VAT and other necessary documents are required.
Loan accounting systems
- Home Remittances
Remittance in Taka Currency and Foreign Currency from Abroad Any Bangladeshi citizen living, working and earning abroad can remit their earnings in Bangladesh Taka as well as in foreign currency through banks/stock exchange companies having drawing agreement with Uttara Bank Limited. Such remittances are delivered to the beneficiaries quickly through its close/wide network of 198 branches across the country.
CHAPTER - 04
Credit Management of Uttara Bank LTD
Introduction
Thus, credit risk management has gradually become the most important task for effective FI management. Credit risk management must be a robust process that enables financial institutions to proactively manage asset portfolios to minimize losses and obtain an acceptable level of return for shareholders. Credit risk management is of utmost importance to an FI and policies and procedures should be approved and consistently enforced by the MD/CEO and BOD of the FI.
Issuance of credit and preparation and storage of security documents should be done at the branch under the supervision of the zonal office/Credit Risk Management. Credit risk is managed by BM/ZH, which is completely separate from business/sales. To manage the credit risk associated with the products, the following areas should be carefully considered:-.
All verifications are performed to request/verify/confirm the declared/undeclared information from the applicant.
COLLECTION & REMEDIAL MANAGEMENT MONITORING
Customers who do not respond to collection efforts - represent a financial risk for the institution. If the customer cannot be contacted, calls must be made to the apartment phone number. Collection letters are also sent to customers reminding customers to pay arrears by the due date.
Customers and guarantors should be sent a final reminder letter and warranty call letter informing them of the consequences and demanding payment. The facility call letter should be sent to the customer and inquiry of the outstanding total is the first initiative for this stage. Extreme pressure will be placed on the customer as well as the guarantor for repayment through the use of internal collectors as well as external recovery agencies.
Every month the responsible officer/collection unit will ensure the allocation of the accounts provided to the individual collectors as well as to the external agencies depending on the prospect of recovery to maximize recovery.
PREFERRED ORGANIZATIONAL STRUCTURE &
The recovery portfolio is subdivided into various collectible and uncollectible pools of accounts. Depending on the size of the account balance, the internal recovery may continue, while the rest of the portfolio will be assigned to external agencies, including legal agencies, to ensure expected recovery. Officer collections (recovery) will be empowered to offer interest waivers for lump sum settlement, and installment schemes (not rewrites) and amnesty offers to maximize recovery recoveries.
The collection unit/branch will be able to produce account information to facilitate the above type of collection efforts.
CHAPTER - 05
Findings, Conclusion &
Recommendations
Findings & Recommendations
Difficulties, problems that are faced by Uttara Bank Ltd
- Transport/HBL/Midterm/Long-term Industrial Credit
- Export Development Fund (EDF)
- Packing Cash Credit (PCC) /Export Cash Credit (ECC)
- SOD against FDR, Bond, etc
- SOD against Work Orders
- Cash Credit (Hypothecation)
Faced with a competitive credit scenario dominated by borrowers, Uttara Bank ltd has to come up with innovative loan products to meet the demand of time. To combat the problem of deposit mobilization in the form of credit, Uttara Bank ltd should focus on intensive marketing. The deposit balance of Uttara Bank ltd is quite satisfactory, but keeping in mind the future needs, the bank should continue to look for deposits extensively in addition to advance payment.
The deposit rate should be set at a position that keeps pace with demand in the competitive market. Since borrower selection is the key to successful lending, Uttara Bank Ltd should focus on the selection of genuine borrowers. But at the same time, it should be considered that choosing the right borrower does not mean that Uttara Bank Ltd should adopt a conservative lending policy, rather it means compliance with KYC or Know Your Customer to ascertain the true purpose of the loan.
To expedite the credit process, Board credit committee meetings should be held twice or more per month. To speed up the credit process, Uttara Bank Ltd needs to facilitate online loan application submission and in-person credit processing. It is therefore proposed that Uttara Bank Ltd establishes a separate loan monitoring cell, which will be responsible for monitoring the overall loan portfolio, with a particular focus on the non-performing loans.
Each branch should have at least one loan monitoring officer who is only meant for loan monitoring of the Branch and is directly accountable to the monitoring cell under the control of the manager. Our salespeople need to be properly trained so that customers are interested in talking to them. Proper valuation of the collateral and loan amount must be lower than the forced sale value.
Along with the above transactions, the following entry will be made at the time of collection. Cash/operating party a/c---Dr credit party a/c---Cr (iii) If any amount of interest is removed, then.
Appendix -XVII Job Description SE Manager Finance Appendix -XVIII Job Description Departmental Officers/Credit Analyst.
APPENDIX
BORROWER’S PROFILE
NATURE OF BUSINESS/PROFESSION
REQUESTED LIMITS
I hope you see the urgency of the matter and step forward to resolve it immediately. When the markup/interest or principal is overdue (overdue) for 90 days or more from the due date. Unsatisfactory When markup/interest or principal is overdue (overdue) for 120 days or more from the due date.
Provision of 10% of the difference arising from the outstanding balance of principal less the amount of liquid securities held by the Bank. LTA Where markup/interest or principal is 180 days or more past due (overdue). Provision of 20% of the difference arising from the outstanding balance of principal less the amount of liquid securities held by the Bank.
Provision of 50% of the difference arising from the outstanding balance of principal less the amount of liquid securities with the Bank. on/interest or principal is overdue by 12 months or more from the due date. Provision of 100% of the difference arising from the outstanding balance of the principal minus the amount of liquid securities with the Bank. Where mark-up/interest or principal is overdue by 90 days or more from the date of payment (stale).
Provision of 10% of the difference arising from the outstanding balance of principal minus the amount of liquid securities held by the Bank. LTA Where markup/interest or principal is 180 days or more past due (overdue). Provision of 20% of the difference arising from the outstanding balance of principal minus the amount of liquid securities held by the Bank.
Provision of 50% of the difference arising from the outstanding principal balance less the amount of liquid securities with the bank. Unsatisfactory If the surcharge/interest or principal is due (overdue) 180 days or more from the due date. Substandard If the surcharge/interest or principal is due (overdue) 12 months or more from the due date.
Ø Regulatory: Ensure compliance with laws of the land, implement and enforce local banking regulations.
