Chapter-1
Introduction
1.0 Origin of the Report:
Independent University, Bangladesh (IUB), one of the
reputed private universities in Bangladesh, has designed the curriculum of the
BBA course in such a way that after completing 116 credit hours, one student
needs to go for further 12 credit hours for internship program in a commercial
organization. From this internship program students get the opportunity to
learn about the real business world. As
an Intern student I have been assigned to work in the United Commercial Bank
Ltd.
This Internship report has been prepared for
fulfillment of the partial requirement of B.B.A program of Independent
University, Bangladesh.
1.2 Background of the Report:
Any academic course of study has a great value when
it has practical application in the real life. Only theoretical knowledge will
be of little importance unless it is applicable in the practical life. So, we
need to do proper application of our theoretical knowledge in our practical
life, and only then we can derive the benefit of the theoretical knowledge.
This is, infect, the reason for the requirement of an internship report in BBA
program. Hence, the present internee worked for three months at the Principal
Branch of United Commercial Bank Limited to complete the internship.
1.3 Topic of this report:
To write a report it is necessary to select a topic.
A well-defined topic reflects what is going to be discussed throughout the
report. The topic that has been assigned by university supervisor is “Analyzing
the services of the Foreign Exchange Division of United Commercial Bank Limited (UCBL)
”.
1.4 Report Objectives:
To get to know of the services of the foreign
exchange division of UCBL.
To make an appraisal of UCBL’s foreign exchange
services in comparison with the foreign exchange divisions of a few other
private banks located in Dhaka city.
This study addresses itself to the services offered by the United Commercial Bank Limited in
their Foreign Exchange department. The scope of this report is limited to the
corporate clients of import and export departments of United Commercial Bank Limited. The clients to be included in
this report are all local & foreign banks who are engaged in foreign
exchange business with UCBL. The aim is officers of this bank also come under
the scope of this study. To show the position of this bank, a few other banks
located in Dhaka city have also been taken into consideration for the purpose
of this study.
1.6 Methodology:
1.6.1 The Secondary sources of Data:
Annual Reports of the UCBL.
Periodicals published by the Bangladesh Bank.
Different books, articles etc. regarding Foreign
Exchange operations.
Relevant file study as provided by the bank under
study.
1.6.2 Measurement Techniques
For collecting the information two types of
measurement techniques will be use-
Observation: Observation was made to get to know of
the services of the Foreign exchange division of the bank under study.
Comparison: Comparative analysis of Foreign exchange
operations was made between UCBL and some other banks.
1.7
Limitations of Report:
The study is subject to some limitations. They are:
Respondents could not give adequate time to supply
information because of busy and heavy work schedule.
Data could not be collected in the exact form the
present report required
Limited time could be another constraint.
1.8 Definition of important terms used:
Documentary Credit: In simple terms a documentary
credit is a conditional bank undertaking a payment.
Bill of Lading: A bill of leading is a document that
is usually stipulated in a credit when the goods are dispatched by sea. It is
evidence of a contract of carriage, is a receipt for the goods, and is a
document of title to the goods.
C. Commercial Invoice:
A Commercial
Document is the accounting document by which the sellers change the goods to
the buyer.
D. Inspection
Certificate:
This is usually issued by an
independent inspection company located in the exporting country certifying or
describing the quality, specification or other aspects of the goods, as called
for in the contract and the L/C.
E. Inward
remittance:
The remittances, which are received from abroad, are
called inward remittance.
F. Outward
remittance:
Those are made from our country to abroad is called
out ward remittance.
Chapter-2
Literature Review
2.0 Literature Review:
This chapter has described the definition of
different Key terms and professional words that used in banking sectors, which
used in this report.
Foreign trade: Foreign trades defined as a business
activity, between parties or governments of two different countries. Trades
among nations are common occurrences and normally benefit both the exporter and
importer.
The Most used documents in Foreign Exchange:
Documentary Credit: In simple terms a documentary
credit is a conditional bank undertaking a payment. Expressed more fully, it is
a written undertaking by a bank (issuing bank) given to seller (beneficiary) at
the request, and in accordance with the instructions of the buyer (applicant)
to effect payment (that is, by making a payment, or accepting or negotiating
bill of exchange) up to a stated sum of money, with in a prescribed time limit
and against stipulated documents.
Bill of Lading:
A bill of leading is a document that is usually
stipulated in a credit when the goods are dispatched by sea. It is evidence of
a contract of carriage, is a receipt for the goods, and is a document of title
to the goods. It also constituted a document that is, or may be, needed to
support an insurance claim.
A bill of lading specifically states that goods are
loaded for ultimate destination specifically mentioned in the credit.
Commercial Invoice:
A Commercial Document is the accounting document by
which the sellers change the goods to the buyer.
Certificate of Origin:
A certificate of origin is a signed statement
providing evidence of the origin of the goods.
Inspection Certificate:
This is usually issued by an independent inspection
company located in the exporting country certifying or describing the quality,
specification or other aspects of the goods, as called for in the contract and
the L/C. the inspection company is usually nominated by the buyer who also
indicates the types of inspection he wishes the company to undertake.
Foreign Exchange Remittance:
Remittance means sending/ transferring of fund
through a bank from one place to another place which may be within the country
or between two countries, one in abroad is called Foreign Remittance.
“Foreign Remittance” means purchase and sale of
freely convertible foreign currencies as admissible “Foreign Exchange
Regulations Act-1947” and “Guidelines for Foreign Exchange Transaction – VOL.
1&2 of the country. Purchase of foreign currencies constitutes inward
foreign remittance and sale of foreign currencies constitutes out ward foreign
remittance.
Two types of Foreign Remittance:
Foreign inward remittance.
Foreign outward remittance.
Inward Remittance:
The remittances, which are received from abroad, are
called inward remittance.
Outward Remittance:
Remittances, which are made from our country to
abroad, are called outward remittance.
Chapter-3
An over view of UCBL
United
Commercial Bank Limited: An over view
The chapter is consisting of a short description of
the Company history, structure, aims of United Commercial Bank Limited.
3.1
Historical Background:
Sponsored by some dynamic and reputed entrepreneurs
and eminent industrialists of the country and also by the Government, United
Commercial Bank Limited started its operation in mid 1983 and has since been
able to establish the largest network of 80 branches as on 31.08.2001 in the
private sector.
UCBL has already made a distinct mark in the realm
of private sector banking through personalized services, innovative practices,
dynamic approach and efficient management. The Bank, aiming to play a leading
role in the economic activities of the country, is firmly engaged in the
development of trade, commerce, and industry through a creative credit pricy.
3.2 Structures and Management:
The bank has an authorized capital of Tk.1000.00
million and a paid up capital of Tk.230.16 million contributed by sponsors. The
Head Office of the bank is situated at 60, Motijheel Commercial Area,
Dhaka-1000.
The sponsors’ directors of the bank are
well-established businessman, industrialists, and professionals of the country
having business in and out of Bangladesh.
Mr. Hamidul Huq, Managing Director of the bank,
successfully leads the management team of the bank. The management is ably
supported and assisted by qualified executives and officers.
3.3Current Position:
3.3.1 Capital:
During the year 2002 authorized capital of the bank
remained unchanged at Tk.1000.00 million and the paid up capital stood at
Tk.230.16 million. On the other hand the reserve fund of the bank increased
from Tk.46.92 million to Tk.440.42 million as against Tk.393.50 million in the
previous year.
3.3.2 Number of Branches:
UCBL always places utmost importance on the client
service. With that end in view the bank continued its personalized approach in
rendering improved and modernized services. Presently the number of branches
stands at 80 covering almost all the important places of the country. The
number of authorized dealer branches is 18.
3.3.3 Investment:
At the close of 2002, total investment of the bank
stood at Tk.3961.60 million as against Tk.1, 961.58 million in 2001. However,
dividend amounting to Tk.158.87 million has been received from different
companies/institutions against investment in shares during the year 2002.
3.3.4 Number of shareholders:
During the year 2002, total number of shareholders
of the bank stood 3943 as against number of shareholders 3,539 in the year
2001.
Aims:
United Commercial Bank Limited aims at excellence
and is committed to explore a new horizon of banking and provide a wide range
of quality products and service.
It is a bank for the common people including
businessmen and professionals. It intends to serve with quality at a price
competitive to anyone in the financial market. It would constantly keep on
exploring the needs of the clients.
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