8/10/2019 Khandaker

1/20

Loan and Advance Activity of Uttara Bank

Limited-

Green Road Branch

PRESENTED BY:

KHANDAKER ALIM - AL - BARI

BBA Program (Major in Marketing)

ID: 021102100

26/08/2014 1

8/10/2019 Khandaker

2/20

Loan and Advance Activity of Uttara

Bank Limited-Green Road Branch

PREPARED FOR:

SOMAIYAH SARWAR.Lecturer

Faculty of Business Administration

BBA ProgramUniversity of Development Alternative (UODA)

26/08/2014 2

8/10/2019 Khandaker

3/20

PRESENTATION CONTENT:

Definition of Loan and advance.

Types of loans and advance of UBL.

Cash credit (Hypo and Pledge).

Loan against trust receipt.

Total Procedure of Loan.

Credit performance ratio.

Major problems of Loans.

Recommendations.

26/08/2014 3

8/10/2019 Khandaker

4/20

UTTARA BANK AT A GLANCE:

26/08/2014 4

founded 1983

HEAD OFFICE UTTARA BANK BHABAN, 47,

SHAHID BIR

UTTOM ASFAQUS SAMAD SARAK, (90,

MOTIJHEEL COMMERCIAL AREA), P.O.

BOX NO. 217 & 818 DHAKA-1000.

KEY PEOPLE MR.AZHARUL ISLAM (CHAIRMAN)

INDUSTRY BANKING

PRODUCTS FINANCIAL SERVICES

OPERATING PROFIT 6,941,005,704 (AMOUNT IN TAKA )

PROFIT BEFORE

TAXATION

2,694,925,790 (AMOUNT IN TAKA )

EMPLOYEES Nearly 3,562.

8/10/2019 Khandaker

5/20

DEFINITION OF LOAN & ADVANCE:

LOAN OR ADVANCE- BOTH ARE TREATED AS A

CREDIT FACILITY. IF THE CREDIT FACILITY IS

REPAYABLE IN A SHORT PERIOD SAY WITHIN

ONE YEAR IT IS TREATED AS ADVANCE AND IF

THE CREDIT FACILITY IS REPAYABLE MORE

THAN A YEAR IT IS TERMED AS LOAN

26/08/2014 5

8/10/2019 Khandaker

6/20

26/08/2014 6

REPAYABLE

MORE

THAN A

YEAR IT IS

TERMED AS

LOAN

Credit Facility

REPAYABLE

IN A SHORT

PERIOD SAY

WITHIN ONE

YEAR IT IS

TREATED AS

ADVANCE

8/10/2019 Khandaker

7/20

TYPES OF LOANS AND ADVANCES OF UBL:

26/08/2014

7

Continuous Loan

Demand Loan

Term Loan

Small & medium Enterprise loan

8/10/2019 Khandaker

8/20

26/08/2014 8

8/10/2019 Khandaker

9/20

CASH CREDIT HYPOTHECATION

Cash Credit allowed against

hypothecation of good is known as Cash

Credit (HYPO). In case of hypothecation,

the borrower retains the ownership and

possession of goods on which charge of

the lending bank is created. Charge of

Uttara bank limited, Moghbazar Branch is

14%.

26/08/2014 9

8/10/2019 Khandaker

10/20

CASH CREDIT (PLEDGE):

Cash credit allowed against pledge

of good is known as Cash Credit

(Pledge). In case of Cash credit(Pledge), the borrower pledge his

goods to the bank as security

against the Credit facility.

26/08/2014 10

8/10/2019 Khandaker

11/20

Particulars January February March April

Balance(Amoun

t)

2903141.12 3201203.02 3052343.73 3047972.17

Balance(Number

of A/C)

25 28 33 35

26/08/2014 11

8/10/2019 Khandaker

12/20

L

OAN

AGAINST

T

RUST

R

ECEIPT

(LTR)

On the arrival of goods and lodgment of

import documents, importer may

request the bank for clearance of goods

from the port (custom) and keep the

same to bank go down. Proper sanction

from the competent authority is to be

obtained before clearance of

consignment.

26/08/2014 12

8/10/2019 Khandaker

13/20

W

OMEN

E

NTREPRENEUR

S

L

OAN

S

CHEME

(N

ARI

S

WANIRBOR

R

IN

P

ROPOLKO

)

26/08/2014 13

8/10/2019 Khandaker

14/20

26/08/2014 14

8/10/2019 Khandaker

15/20

TOTALPROCEDUREOFLOAN

26/08/2014 15

8/10/2019 Khandaker

16/20

T

OTAL

LOAN

DISBURSED

FROM

J

ANUARY

TO

APRIL2014 ATUBL, MOGHBAZARBRANCH:

26/08/2014 16

8/10/2019 Khandaker

17/20

26/08/2014 17

8/10/2019 Khandaker

18/20

MAJORPROBLEMSOFLOANS:

Loans are un-recovered as these

are sanctioned against improperdocuments.

Loans are given as the order of

direct higher authority. Loans are not properly utilized,

loans was cautioned for one

sector but used in other sector.

Lack of sufficient interest.

Financial loss in business of the

creditor.

26/08/2014 18

8/10/2019 Khandaker

19/20

R

ECOMMENDATIONS:

UBL should reduce its dependency on

CC and Secured Overdraft. The branch

should encourage clients to take loans

from other categories.

Loan & Advance department should be

automated; as a result sectioning of

loan will be less time consuming.

26/08/2014 19

8/10/2019 Khandaker

20/20

26/08/2014 20