A Case Study Of Uttara Bank Limited Finance Essay

The subject of this study is “ Improve concern processes through utilizing modern determination support system ” : A instance survey on Dhaka Branch of Uttara Bank Limited ” . To fix this study, I have taken the necessary aid from the Uttara Bank Limited ( UBL ) .

My study is designed based on “ General Banking Activities ” ( what the bank by and large does ) of UBL and how modern determination support system aid this company to do determination. The Bank accomplishes these activities under a several section, such as: Account ‘s gap & A ; Clearing, Loans & A ; Advance, Local Remittance, Foreign Remittance and Cash & A ; Accounts Departments.

Account ‘s Opening & A ; Clearing Department trades with opening the different types of histories, publishing the checkbook, inward & A ; outward glade and returning of the check. A client can open different types of history, such as: economy, current & A ; different type of sedimentation history.

The Uttara Bank Limited offers different remittal installations. Under the local remittal section, the clients can direct & A ; reassign one topographic point to another in Bangladesh. This money through the mail transportation, telegraphic transportation, demand bill of exchange and pay order. Under the foreign remittal section, the bank helps the emigres to remit their hard-earned money to the native state. The bank received & As ; pays the hard currency, records the minutess and prepares the statements of day-to-day, hebdomadal, monthly & A ; annually.


There exist immense differences between theoretical cognition and practical cognition. This study on Uttara Bank Limited is prepared to carry through the partial demand of the organisation.


Types of research: The research is an explorative research.

Beginnings of informations: Data for the intent of forming this study has been collected from both primary and secondary beginning.

Primary informations:

Personal Observation

Face to confront conversation officer & A ; clients

Working at different desks of the bank.

Secondary beginnings of informations: The web site of Uttara Bank Limited assorted research oriented and marketing books were the secondary beginning of informations.

Secondary informations:

All of the informations are collected from assorted pub king of beastss of Uttara bank ltd.like

Annual study of Uttara bank ltd

Published brochure of uttara bank Ltd.

hypertext transfer protocol: //www.uttarabank-bd.com/

Time frame of the study

Name of the section:

General banking departmentaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.. 8 yearss

Histories sectionaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ 10 yearss

Scope of the Report

This study covered the overall general banking system of Uttara Bank Limited and usage of modern determination support system. There are many subdivisions of UBL across the state and among those subdivisions I will be done my research in Rokeya Shorony Branch, Dhaka. I was seeking to cognize all possible activities associating to this subdivision while I carry oning this research.

Restrictions of the Report

The study was completed under certain constrains which were:

Trouble in communicating and gaining entrees to fiscal sector.

Non-availability of the most needed informations.

Assignment clip is non adequate clip for such an extended survey so clip restraints are another restriction of this study.

Some informations could non been collected for confidentially or secrecy of direction.

The bankers are really busy with their occupations, which lead a small clip to confer with with.

Overview of UBL

Uttara Bank Limited UBL is a private commercial Bank in Bangladesh. Uttara Bank-one of the largest and oldestA private-sector commercial bank in Bangladesh, with old ages of experience. Adaptation of modern engineering both in footings of equipment and banking pattern ensures efficient service to clients.A 207 subdivisions at place and other more affiliates worldwide create efficient networking. Uttara Bank is a bank that serves both clients and state.

Historical Background of UBL:

During 28th January, 1965. At that clip it ‘s paid up capital was 69.13 crore and net income figure was 42lac. During September 1983 it was privatized under denationalization act. At that clip this sedimentation was 231.03 crore and net income figure was 5.06 up to 2003 its figure of subdivisions bases to 198 and it ‘s paid up capital was 100 million. 95 % of its portion holder is public and remainder of portion holds by Government. Uttara Bank Ltd. is one of the largest and oldest private-sec1o commercial Bank in Bangladesh. Adaptation o modern engineering both in footings of equipments and banking pattern guarantee efficient service to clients I9 subdivisions at place and 200 affiliates world-wide create efficient networking, and range capableness.

Mission Vision & A ; aims of UBL:

2.3.1 Mission:

The bank has some mission to accomplish the organisational ends. The bank looks frontward with exhilaration and a committedness to convey greater benefits to customers.Some of them are every bit follows as:

Uttara Bank Limited provides high quality fiscal services to beef up the well-being and success of single, industries and concern communities.

Its purpose to guarantee their competitory advantages by upgrading banking engineering and information system.

UBL intends to play more of import function in the economic development of Bangladesh and its fiscal dealingss with the West of the universe by complecting both modernistic and international operations.

The bank creates wealth for the stockholders

The bank believes in strong capitalisation.

Its maintain high criterion of corporate and concern moralss.

Uttara Bank Limited ( UBL ) HIERARCHY

Pull offing Director


Deputy Managing Director


Asst. Managing Director


General Manager


Deputy General Manager


Asst. General Manager


Senior Principal Officer


Chief Officer


Senior Officer Grade -1


Officer Grade -2

( Beginning: ANNUAL REPORT OF UBL 2009 )

UBL bank is giving loan these classs: superior, good and acceptable.

UBL bank is consideration loan this class: Fringy or Watch list.

UBL bank had given no loan these classs: Particular Mention, Sub criterion, dubious, bad and loss.

( Beginning: ANNUAL REPORT OF UBL 2009 )

Revised Interest rates on sedimentation & A ; loaning

Type of sedimentation

Rate of Interest

SB Account

4.50 %

STD Account

5.00 %

Fixed Deposit:

I ) 3 months & A ; above but less than 6 months 6.25 %

two ) 6 months & A ; above but less than 1 twelvemonth 7.50 %

three ) 1 twelvemonth & A ; above but less than 2 old ages 8.00 %

four ) 2 old ages & A ; above but less than 3 old ages 9.00 %


Classs of loaning

( Agribusiness )

Rate of Interest

Crop Loan

10.00 %

Agro-based Industries

10.00 %

2. Large and Medium Scale Industries ( TL ) 15.00 %

3. Working Capital

Loans & A ; progresss upto Tk. 1 Crore 15.00 %

Loans & A ; progresss above Tk. 1 Crore to 3 crore 14.50 %

Loans & A ; progresss above 3 crore to 10 crore 14.00 %

Loans & A ; progress above 10 crore 13.50 %

4. Export

P. C. against export of natural jute 7.00 % ( Fixed )

O.D. against export of leather merchandises 7.00 % ( Fixed )

O.D. against export of other trade goods 7.00 % ( Fixed )

5. Other commercial loaning

Jute trading 14.50 %

Fertilizer trading 13.50 % to 15.00 %

( degree Celsius ) Other merchandising 13.50 % to 15.00 %

6. Small and bungalow Industries ( TL )

Interest rates will be charged in the undermentioned mode:

Loans & A ; advances up to Tk. 1 crore 15.00 %

Loans & A ; progresss above Tk. 1 crore to 3 crore 14.50 %

Loans & A ; progresss above 3 crore to 10 crore 14.00 %

Loans & A ; progresss above 10 crore 13.50 %

7. Others


Residential 14.50 %

Commercial 14.50 %

Transport 13.50 % to 15.00 %

Cold Storage 13.50 % to 15.00 %

Brick Field 13.50 % to 15.00 %

Loan Against work order 13.50 % to 15.00 %

Interest rates will be charged in the undermentioned mode:

Loans advance up to Tk. 1 crore 15.00 %

Loans & A ; progresss above Tk. 1 crore to 3 crore 14.50 %

Loans & A ; progresss above 3 crore to 10 crore 14.00 %

Loans & A ; progresss above 10 crore 13.50 %

Loan against F.D.R 2 % above the rate allowed on FDR.

Loan Against DPS 15.00 %

Loan Against WEDB & A ; ICB Unit Certificate 14.50 %

Loan Against surrendered value of 15.00 %

Life insurance Policy

Consumer loan 15.00 %

Personal Loan 15.00 %

Small concern loan 15.00 %

House mending / redevelopment loan 14.00 %

8. Non -Banking Financial Institution

and other syndicated loans 12.50 % ( lower limit )

( Beginning: ANNUAL REPORT OF UBL 2009 )

Head wise place of bank ‘s Invested Fund at the terminal of the twelvemonth 2009 is given below:

UBL Invested Fund of 2009:

Heads of Investing

( Taka in 1000000s )

Treasury Bills and Chemical bonds

Approved Debenture ( in purchase monetary value )

Prize Chemical bond




Ordinary Shares:

a. Eastern Bank Ltd. 43.1

b. Karmasangsthan Bank 10

c. ICB ( Approved ) 7.9

d. CDBL 1.0

e. Other Companies 11.9




Beginning: ANNUAL REPORT OF UBL 2009

Import and Export Business:

Bank has been go oning to widen particular importance on foreign concern from the beginning of its constitution which is still predominating during the twelvemonth. In 2009 import concern stood at Tk. 25,407.9 million as compared to the volume of Tk.22,630.4 million of 2008. Export concern handled by the Bank during the twelvemonth 2009 amounted to Tk. 14,784.5 million as against Tk. 18,133.9 million of the predating twelvemonth.


There are 2 wings of UBL.

1. Head office

2. Regional office.

Each contains their different subdivisions and bomber subdivisions have been given holla:

1.1 Head office:

Chairman ‘s secretariat

Pull offing manager ‘s secretariat

Share section

MIS & A ; computing machine section

1.2 Human resources division:

forces section

developing institute

constitution sections

stationary and records sections

trial key section

conveyance section

1.3 Marketing division:

Business development section

Branches section

Engineering section

Public section

1.4 Credit division:

Credit operation section

Recovery section

Lease funding unit

CIB unit

1.5 Accounts section:

Statisticss section

Reconciliation section

Outgo section

1.6 Audit & A ; review division:

Internal audit section

External audit section

1.7 International division:

Treasury section

Covering room

3.2 Regional offices of UBL:

Regional Offices

Dhaka North Zone

Dhaka South Zone

Mymensing Zone

Chittagong Zone

Bogra Zone

Rajshahi Zone

Barishal Zone

Comilla Zone

General Banking

Functions of UBL:

Accepting sedimentations

Allowing recognition


Auxiliary map of a bank:

Supplying remittal installations

Supplying TT ( telephone transportation ) & A ; MT ( mail transportation ) installations to its ain subdivisions.

Executing standing innuendos of clients

Supplying safe sedimentation cabinets

Undertaking Foreign Exchange concern include issue of missive of Credit ( LIC ) Buying or merchandising of securities-collecting interest/dividends on securities/shares etc.

Roll uping measures / Cheques/ PO.

Any other service given by a modern banker.

Procedures for opening Histories:

The debut shall be obtained in composing in the several column of Account opening signifier.

For opening nest eggs bank history of single either singly or jointly, passports and NID cards accepted for debut, but later proper debut may be obtained.

Introduction of Current Account by members of the staff may be allowed but shall be discouraged every bit far as possible.

Current Account shall sooner be introduced by another Current Account holder acceptable to bank.

Introduction of Account holder of other subdivision may be accepted with cautiousness. In that instance the introducer ‘s signature must be verified by authorised officer of that subdivision and authenticated by a forwarding missive.

Photographs of history holder must be attested by the introduce.

Letter of thanks be issued to introducer in Bank ‘s standard specimen.

Every individual must be fill up KYC ( cognize your client ) signifier.

Account Section:

This is a really much important section for each subdivision of a commercial bank. Records for all the dealing of every section are kept here every bit good as with the several subdivisions. Accounting section varies all the fiscal sum s and content of minutess. If any disagreement arise sing any dealing this section study to the concern section.

Undertaking of history subdivision

records all dealing in cashbook

records all dealing in the general and subordinate books

prepare day-to-day fund map, hebdomadal place, periodic statement of personal businesss

prepare necessary statement for describing intent

pay all outgo on behalf of the subdivision

do salary statement and pay wage

budgeting for subdivision

Make charges for different types.

UBL Business Information System

UBL presently used accounting package for their general intent. All dealing and history information are computerized. Customer and loan, sedimentation etc. The maintain all bellow information with their package.

Customer information

Deposit information

Loan and involvement information

All transactional information

Employee Detailss

Employee payment system

Cost benefit analysis

Insurance information

All transactional study can be generated

Annual study etc

UBL accounting package ‘s some interfaces are given bellow

Picture: 1

Picture: 2

Picture: 3

Picture: 4

UBL Main Problems:

UBL has many subdivisions all over the state. Sometimes they arrange run intoing for managerial intent. Engagement of meeting for managerial individual is more of import. But due to traffic jam and timing they ca n’t able to take part the meeting. For this ground they are confronting a large job to run the UBL decently.

Problems in determination devising

Peoples do non able to go to the meeting in proper clip

It is dearly-won to go to the meeting

That ‘s non clip devouring


Group Decision Support Systems ( GDSS ) – An synergistic, computer-based system that facilitates solution of unstructured jobs by a set of decision-makers working together as a group. It aids groups, particularly groups of directors, in analysing job state of affairss and in executing group determination doing undertakings.

( hypertext transfer protocol: //www.tbrc.fi/pubfilet/TBRC_200245112011.pdf GDSS: 10.12.10 )

Advantages of GDSS

High degree directors can pass 80 % of their clip doing determinations in groups. Applied right, GDSS can cut down this clip, geting at a better determination faster.

More participants = more cognition available on which to establish determination

Be easy to larn and utilize

Specially design system

Better the procedure and merchandise of group determination devising

Supporting positive group behaviour

Anonymity – thrust out fright taking to better determinations from a diverse hierarchy of determination shapers

Parallel Communication – eliminate monopolising supplying increased engagement, better determinations

Automated record maintaining – no demand to take notes, they ‘re automatically recorded

Ability for practical meetings – merely need hardware, package and people connected

Portability – Can be set up to be portableaˆ¦ laptop

Global Potential – Peoples can be connected across the universe

No demand for a computing machine guru – although some basic experience is a must

Disadvantages of GDSS:

Cost -infrastructure costs to supply the hardware and software/room/network connectivity can be really expensive

Security – particularly true when companies rent the installations for GDSS ; besides, the facilitator may be a lower-level employee who may leak information to equals

Technical Failure – power loss, loss of connectivity, relies to a great extent on bandwidth and LAN/WAN substructure – decently apparatus system should minimise this hazard

Keyboarding Skills – reduced engagement may ensue due to frustration

Training – acquisition curve is present for users, varies by state of affairs

Percept of messages – deficiency of verbal communicating could take to misinterpretation

Typical GDSS Procedure

Group Leader select package, develop docket

2 ) Participants meet ( in determination room/Internet ) and are given a undertaking.

3 ) Participants generate thoughts – insight anonymously

4 ) Facilitator organizes thoughts into classs.

5 ) Discussion and prioritization – may affect ranking by some standards and/or evaluation to the facilitators scale

6 ) Repeat Steps 3, 4, 5 as necessary

7 ) Reach determination

8 ) Recommend supplying feedback on determination and consequences to all involved

GDSS Time/Place Environment

Types of GDSS

There are four types of GDSS harmonizing to how they fit along two dimensions.

1. The physical propinquity of group members.

2. Decision doing session continuance.

Show in graph

1 Decision room

Traditional one off run intoing with the support of computing machine. All participants sit within a room and faced a proctor or projector for group meeting.


Decision room is non sweet able for the UCB because subdivisions of UCB separated in a big distance.

2. Teleconferencing

More than one meeting room which is geographically distance can be connected through teleconferencing. Can be including audio picture and computing machine links for particular schedule meetings. With GDSS constructs this represents a director of bing engineering.

In this image all office is situated in regardful territory of state.


Using “ Teleconferencing ” the can set up

3. Local Decision Network

Participants off meeting when stay in a individual edifice and they participate and dial with jobs on a regular basis. Without run intoing face to face they can discourse sitting on their ain desk.

Peoples hold a meeting with each individual with their ain office through a LAN.

4. Distant Decision Making

Using this GDSS meeting may be called at merely a few proceedingss ‘ notice utilizing a broad country web to pass on with other member.

Components of GDSS

1. Hardware

2. Software

3. Peoples

4. Procedure

Best Uses of GDSS

Complex determination devising

For Large Groups – a meeting of 2 or 3 people does non warrant GDSS investing

Choosing the Right GDSS

See the followers

Decision Task Type

Group Size

Location of members of the group

Available Software:

Group Systems offers a aggregation of package tools to back up group activities such as brainstorming, information assemblage, thought organisation, vote, penchant collection, and consensus edifice.

Proposed Solution

So GDSS is the best solution for UCB. Using “ Remote Decision Making ” of GDSS they can work out their job. Because their subdivisions is situated all over the state. Using Distant Decision Making of GDSS UCB managerial individual can go to the meeting sitting on their ain subdivision office on clip and can able to portion their cognition and thoughts with other member. It is clip devouring for them. It ensures presence of all member to the meeting harmonizing to agenda clip.