Loan and Advance Activity of Uttara Bank

Limited-Green Road Branch.

PRESENTED BY:
KHANDAKER ALIM - AL - BARI
BBA Program (Major in Marketing)
ID: 021102100
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Loan and Advance Activity of Uttara
Bank Limited-Green Road Branch.
SOMAIYAH SARWAR.
Lecturer
Faculty of Business Administration
BBA Program
University of Development Alternative (UODA)

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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.




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UTTARA BANK AT A GLANCE:




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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.
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"
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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"
TYPES OF LOANS AND ADVANCES OF UBL:

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Continuous Loan
Demand Loan
Term Loan
Small & medium Enterprise loan
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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%.


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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.

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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

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LOAN AGAINST TRUST RECEIPT (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.

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WOMEN ENTREPRENEURS LOAN SCHEME(NARI
SWANIRBOR RIN PROPOLKO)


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OTAL PROCEDURE OF OAN


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TOTAL LOAN DISBURSED FROM JANUARY TO
APRIL 2014 AT UBL, MOGHBAZAR BRANCH:


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MAJOR PROBLEMS OF LOANS:
Loans are un-recovered as these
are sanctioned against improper
documents.
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.

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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.

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