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.
No comments:
Post a Comment