Small Medium Entrepreneurship (SME) Operations of Uttara Bank Ltd

This report is prepared as a requirement of the internship of BBA program of the Northern University Bangladesh. This report focuses three months working experiences in Azimpur Branch, Uttara Bank Limited. This report will give a clear idea about the activities and operational strategies of UBL. Especially this report focuses on the Small Medium Entrepreneurship (SME) Operation of Uttara Bank Limited.


Uttara Bank-one of the largest and oldest private-sector commercial bank in Bangladesh, with years of experience. 211 branches at home and 600 affiliates worldwide create efficient networking and reach capability. Uttara is a bank that serves both clients and country. Uttara bank Ltd started their functioning from 28th January, 1965 with the name of Nath Bank. 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. It has made its journey like a modern private Bank in 15 September 1983 at its registered office and other branches. The initial Authorized Capital of the Bank was 20 (Twenty) crore Taka. Which paid capital was 10 [ten] cror taka.

It is most important to mention that, though it is the largest private bank in the Bangladesh but they doing their job totally manually. Most of their customers are demanding for online facility and for this reason authority consider covering few of important branches with the online facility.

UBL is largest private bank in the Bangladesh so they are decorated there plan such a way which is easily compete with the same field of their competitors where all banks are adopting different intensive program to attract the customers. Accordingly, UBL is offering different types of deposit scheme bearing highest rate of return. Monthly Income Scheme and Woman entrepreneur’s scheme and House Repairing are the most popular offers which are widely accepted by clients.
In my three month internship period I have observed that the total Loan of Uttara Bank was Tk486726.87 Lac (form 30.06.2020 to 31.03.2011). Whereas UBL Azimpur branch total Loan was Tk.14661.19 Lac and among this branch total SME loan was Tk8546.13 Lac.

I have tried to incorporate every kinds of relevant information in my report mainly on Small Medium Entrepreneurship Operation of UBL.

1.1 Introduction:
New millennium enhances the opportunity of business and investment sector because of globalization concept. Developed countries pay greater effort to attain economic power for favoring from all aspects. As a result, in the modern society, commercial banks occupy a position of economic importance. They play a significant role to meet up the needs of the society such as capital formation, large-scale production, industrialization, growth of trade, economy etc. Uttara Bank Limited is an unconventional and specialized financial institution that performs most of the standard banking services and investment activities. Instead depositors participate in the profitability of the bank. The bank participates in financing different projects on the basis of profit-loss sharing instead of granting credit facilities with interest.

Basically Banks are those financial institutions that offer the widest range of financial services - especially credit, savings, and payment services - and perform the widest range of financial functions of any business firm in the economy. In other words, Banks are financial service firm, producing and selling professional management of the public's funds as well as performing many other roles in the economy. The banking process and its area are increasing faster and getting wider day-by-day to understand banking procedure has become essential for every individual.

1.2 Background of the Report:
Through this report an individual can expect to have a good knowledge and understanding on the various methods of operation performed by Uttara Bank Ltd. particularly in the area of loan disbursement services.

I completed my BBA program with a major in Finance. The BBA Internship program is a required course for the students who are graduating from the Business Administration Department of Northern University.

In the internship program, I was attached to a host organization works with the help of the internal supervisor.

The bank is providing full-fledged General, Investment & Foreign Exchange services to its client. On the basis of my practical experience as well as theoretical knowledge, I have completed the report regarding “Small Medium Entrepreneurship Operation of UBL”. The main focus of my study is to analyze the Small Medium Entrepreneurship operations which are the core philosophy.

1.3 Objective of the study:
I have been prepared this report for few identical purposes. These purposes are as follows:

a) Broad Objective
Ø  To fulfillment of academic requirement for BBA degree.
Ø  To know about various loan procedures specially SME loan and its process of recovery.

b) Specific Objective:
Ø  To know the various types of SME offered by UBL, Azimpur Branch.
Ø  To know the Procedure of SME loan and Loan sanction activities 
Ø  To know disbursement and recovery process of SME loan
Ø  To analyze SME performance of UBL Azimpur Branch.
Ø  To know the purposes of the SME loan.
Ø  To know the prudential regulation of SME.
Ø  To know the activities of SME enterprise of UBL Azimpur Branch.
Ø  To know the procedures of sanction of SME loan.
Ø  To know the credit approval process of UBL.

1.4 Scope of the study:
The scope of this report is limited to the overall description of the company and its Loan banking position in the industry. The scope of the study is limited to organizational setup, functions, and performances. Scope of the study is quite clear. Since Loan and Advance department is dealing with all types of loan activities in the bank. Opportunities are there to learn about the following aspects of Loan.

*      Concept of Loan and its impact in overall economy in Bangladesh.
*      Importance and necessity of loan banking in context of Bangladesh.
*      Concept of SME and its impact in overall economy of Bangladesh
*      Importance of SME Banking in context of Bangladesh
*      Entrepreneurship development situation through SME banking
*      Proportion of SMEs in enterprise population, and in employment, by Administrative Division of Bangladesh
1.5 Methodology of the study
All the information incorporated in this report has been collected both from the primary sources as well as from the secondary sources. To clarify different conceptual matters, Internet and different published articles in the journals and books have been used. For analyzing data simple mathematical calculation, for growth calculation software likes MS word and Ms Excel have been used.

1.6 Sources of Data:
The data required for this study were collected from both primary and secondary sources. However, majority of the information was collected from secondary sources.
Secondary Sources of Data:
*      Annual report of Uttara Bank Ltd.
*      Bangladesh Bank Periodical.
*      Internet
*      Progress report of the Bank
*      Several kinds of Academic text-book and training sheet
*      Different publications regarding banking functions and Loan operations.
a)      Primary Sources of Data:
*      Personal observation
*      Face to face conversation of officers and clients
*      Interviewing officers and staffs
*      Relevant file study provided by the officers concerned
*      Working at different desks of the Bank

1.7 Rationale of the study:
Historically Bangladesh Bank has been burdened with huge number of classified loans. As a result the burden of bad debts has a negative impact of their new investment. Many financial institutions are trying to avoid giving long terms loans to the industries, especially to new industries. In this situation the concept of syndicate financing is a new concept in Bangladesh. When I am successfully complete this study, it can be used to identify the performance of Uttara Bank Ltd. and also invent new technique, which can be used to prevent a good oloan to become a classified loan and these technique can also be used in other banks to get the same benefit.