SUBMITTED TO:SK. ALAMGIR HOSSAINLECTURERDEPARTMENT OF FINANCEJAGANNATH UNIVERSITY, DHAKA-1100.

SUBMITTED BY: MINHAJUL ISLAM (GROUP LEADER) Roll: B120203101 ON BEHALF OF GROUP 20

Group no.20NameID No.Minhajul IslamB120203101Md. RashedunnobiB120203105Ashikur RahmanB120203130Sujon DasB120203107Sagor ZoardarB120203082

Assignment On:

Activities of commercial bank Role of commercial bank Economic development of Bangladesh Different types of deposit product offered by commercial bank in BD. Different types of loan product offered by commercial bank in BD. Distinguish between commercial bank and Islamic bank. Necessary papers and document needed to open an account in case of company or personal.

Definition of Commercial Bank:A commercial bank is defined as a bank whose main business is deposit-taking and making loans. This contrasts with an investment bank whose main business is securities underwriting, asset management and securities trading.Commercial banks make their profits by taking small, short-term, relatively liquid deposits and transforming these into larger, longer maturity loans. This process of asset transformation generates net income for the commercial bank. Note that many commercial banks do investment banking business although the latter is not considered the main business area

UTTARA BANK Uttara Bank LTD was established in 1965under the name of Eastern Banking Corporation Limited with the specific objective of accelerating trade and investment in the economically depressed eastern wing of the than Pakistan. After liberation of Bangladesh the Bank underwent a major change namely, it was nationalized in March, 1972 and given the name Uttara Bank. The Bank again in 1983 was denationalized and made a commercial bank in the private sector under the name Uttara Bank Limited.Banks and other financial institutions play a vital role in forecasting the economic and social condition of a country. Banks in Bangladesh now constitutes the core of the countrys organized financial system. The main tusk is to mobilize funds from surplus economic unit and deployment it to deficit economic unit and UBL is doing that successfully from its establishment.Customer satisfaction is very important for the reflections of the succession toward progress and expansion for any service institution. Excellence in customer service helps an organization to build a good position in the market and retain more customers. To keep the customers satisfied, UBL provides various types of service to its customers. UBL Principal Branch has three departments. These are: General Banking Department, Foreign Exchange Department and Credit Department. Through these three departments they serve their customers.General banking department provides service to the customers by doing the elementary tasks of the bank. This department has three sections: Main Cash with Cash Cell; Deposit Section i.e. Savings, Current deposit, FDR, SNTD; Clearing; Bills; Accounts; Sanchaypotra, These elementary tasks include account opening, providing master credit card, internet banking, offering different types of schemes to the customers, different types of bills and fees collection etc. Foreign Exchange department also play vital role by providing service to the customers. This department has three sections. These are: Export section, Import section and Foreign Remittance section. All these three sections Foreign Exchange department provides services to its customers. Credit department has three sections i.e. General Loan, Industrial Loan and Loan Recovery.Foreign exchange is an important department of Uttara Bank Limited, which deals with import, export and foreign remittances. It bridges between importers and exporters. This department is playing an important role in enhancing export earnings, which aids economic growth and in turn it helps for the economic development. On the other hand, it also helps to meet those goods and service, which are most demandable and not adequate in our country.Uttara Bank Limited is operating efficiently with its existing products and services. In service-oriented industry, it is very difficult to set a standard rule to satisfy the customer. Several factors shape up the decision of taking the service from an organization. The services which the Bank provides to their clients are very prompt and quality one compare to other private or foreign banks. The bank made satisfactory progress in all areas of business operation. So Uttara Bank Limited is the bank which will go on in the banking sector of the world with their slogan "Abohoman Banglar Oitijje LalitoThe Role of UTTARA BANK:UTTARA Bank engages in the following activities:01. Processing payments via telegraphic transfer, internet banking, or other02. Issuing bank drafts and cheques03. Accepting money on term deposit04. Lending money by overdraft, installment loan or other05. Providing documentary and stady, guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposure.06. Cash management and treasury07. Merchant banking and equity financingBesides Its deposit products include savings bank account ,fixed deposit accounts , short term deposit accounts , current accounts , pension accounts, and foreign currency accounts .The banks loan and lease services are composed micro credit, SME financing, industrial loans, working capital financing., export credit, import credit , bill purchase , letter of credit , letter of guarantee, lease financing ,transport financing consumer loan schemes and house building loans . It also offers various remittance services including remittance of fund from abroad to Bangladesh Traditionally UTTARA Bank also underwrite bonds, and make market in currency, interest rates, and credit-related securities, but today UTTARA Bank usually have an investment bank arm that is involved in the aforementioned activities.Role Of Uttara Bank In The Economic Development Of Bangladesh:Uttara bank plays an important and active role in the economic development of a country. If the banking system in Bangladesh is effective, efficient and disciplined it brings about a rapid growth in the various sectors of the economyThe following is the significance of Uttara bank in the economic development of Bangladesh: 1. Mobilizing saving for capital formation 2. Investment in new enterprises 3. Financing industry 4.financing trade 5. Development of agriculture 6. Balanced development of different regions 7. Influencing economy activity 8. Help in Monetary policy 9. Monetization of the economy 10. Export promotion cells 1. Mobilizing Saving for Capital Formation:Uttara bank helps in mobilizing savings through network of branch banking. People in Bangladesh have low incomes but the banks induce them to save by introducing variety of deposit schemes to suit the needs of individual depositors. They also mobilize idle savings of the few rich. By mobilizing savings, the bank channelizes them into productive investments. Thus they help in the capital formation of a developing country.2. Investment in new enterprises: Businessmen normally hesitate to invest their money in risky enterprises. Uttara bank generally provides short and medium term loans to entrepreneurs to invest in new enterprises and adopt new methods of production. The provision of timely credit increases the productive capacity of the economy. 3. Financing Industry:Uttara bank finances the industrial sector in a number of ways. They provide short-term, medium-term and long-term loans to industry. In Bangladesh, the Uttara bank undertakes short-term and medium-term financing of small scale industries, and also provides hire- purchase finance. Besides, they underwrite the shares and debentures of large scale industries. Thus they not only provide finance for industry but also help in developing the capital market of the countries.4. Financing Trade:Uttara bank helps in financing both internal and external trade. The bank provides loans to retailers and wholesalers to stock goods in which they deal. They also help in the movement of goods from one place to another by providing all types of facilities such as discounting and accepting bills of exchange, providing overdraft facilities, issuing drafts, etc. Moreover, they finance both exports and imports of thecountry by providing foreign exchange facilities to importers and exporters of goods.5. Development of agriculture: Uttara bank particularly in developing countries are now providing credit for development of agriculture and small scale industries in rural areas. The provision of credit to agriculture sector has greatly helped in raising agriculture productivity and income of the farmers. 6. Balanced development of different regions: Uttara bank plays an important role in achieving balanced development in different regions of the country. They help in transferring surplus capital from developed regions to the less developed regions. The traders, industrialists etc. of less developed regions are able to get adequate capital for meeting their business needs. This in turn increases investment, trade and production in the economy.7. Influencing economic activity: The banks can also influence the economic activity of the country through its influence on availability of credit and the rate of interest. If the commercial banks are able to increase the amount of money in circulation through credit creation or by lowering the rate of interest, it directly affects economic development. A low rate of interest can encourage investment. The credit creation activity can raise aggregate demand which leads to more production in the economy. 8. Help in Monetary Policy:The bank helps the economic development of Bangladesh by faithfully following the monetary policy of the central bank. In fact, the central bank depends upon the commercial banks for the success of its policy of monetary management in keeping with requirements of a developing economy.Thus the bank contribute much to the growth of the economy by granting loans to agriculture, trade and industry, by helping in physical and human capital formation and by following the monetary policy of the country.9. Monetization of the economy: The Uttara bank by opening branches in the rural and backward areas are reducing the exchange of goods through barter. The use of money has greatly increased the volume of production of goods. The non-monetized sector (barter economy) is now being converted into monetized sector with the help of bank10. Export promotion cells: In order to increase the exports of the country, Uttara bank have established export promotion cells. They provide information about general trade and economic conditions both inside and outside the country to its customers. The bank is therefore, making positive contribution in the process of economic development.

Different types of deposit product offered by Uttara Bank Bank Deposit Account Bank Deposit Account is an arrangement with a bank that allows the customer to pay Take out money. The bank keeps a record of all the payment and deposits (transaction) in the customers name. It binds the banker and the customer into a contractual relationship. Using an account, a customer may deposits and withdrawals of money from his/her account. It is also called the primary and fiduciary relationship between bank and customer. Opening Deposit Account with a bank is the way of creating banker relationship.

Who can open Deposit Account?Every person who is minimum 18 years old and competent to contract can open an account with a bank provided that bank is satisfied regarding his willing to enter into necessary business relations with him.

Different of Deposit AccountDeposit account is one of the important sources of banks funds. In order to attract customers the Banks offer attractive facilities to different types of deposit accounts holders. Some Deposit Account is as follows:

The functions of general banking department of UBL are as follows: Maintenance of different types Deposit A/C: Saving Accounts Current Accounts Fixed Deposits Short Term Deposits Other Saving Schemes Receipts & payment of cash. Handling transfer transactions. Operations of clearinghouse. Maintenance of accounts with Bangladesh Bank & other banks. Collection of Cheques& Bills. Issue and payment of Demand Drafts, Telegraphic Transfers and Payment Orders. Maintenance of Safe Deposit Lockers. Maintenance of Internal Accounts of the banks. Reporting to the Head Office about daily position of the bank. Saving record of all transactions in computer. Closing and transfer of different types of accounts. Keeping good relation with valued customer. Providing necessary support to the customer.Various types of account offered by UBL:UBL offers various types of account to its different types of customer .These are as follows: Current deposit (CD) account Savings bank (SB) account Short term deposit(STD) Fixed deposit (FOR)

Different types of loan product offered by Uttara BankProduct and services:UBL has different kind of product and services. Its 211 branches carry out all its Banking activities very significantly. Now we can describe about Uttara Banks product and services-

Products- Personal banking products- Personal loan. Vacation loan. Car loan. Any purpose loan. Small business loan. Different deposit scheme; Monthly saving scheme (MSS) Monthly benefit scheme(MBS) Double growth deposit scheme. Uttaran consumer credit scheme. Money gram. LC.

Services- As financial services UBL provides some services to its clients. These are- Corporate Banking Personal Banking SME services Capital market services. Telephone and internet banking services

Types of Loan and advances of Uttara bank ltd:Uttara bank has different type of loans. As per banking company act 1991 every company has to maintain a specified minimum (presently 16%) of the total of its demand and time liabilities in the form of cash and approved securities with Bangladesh Bank. .This percentage or ratio is termed statutory liquid ratio. The Bank continued to consolidate and diversify its portfolio in 2010 to have a diversified client base and portfolio distribution across the sectors to reduce client specific concentration and industry specific concentration and to reduce overall portfolio risk. In 2010 Uttara Bank Ltd registered a steady growth in the credit portfolio posting a growth of 23.37 percent. Total loans and advances of the bank stood at taka 48,672.7 million during the year 2010 as compared to TK 39,451.4 million of the previous year .Average loan per Branch stood at TK 230.7 million .Sector wise allocations of advances revealed a well- diversified portfolio of the bank with balanced exposure in different sectors. His percentage or ratio is termed statutory liquid ratio. Commercial banks allow different forms of advances.

Uttara bank limited branches give different type of loans to its borrower. These are; CC Hypo (Cash credit hypo) CC Pledge (Cash credit Pledge) Small Business Loan (SBL) Consumer Credit Scheme(CCS) Personal Loan (PLS) UHRL (Uttaran Housing Repairing Loan) IBP. LTR. Overdraft (Second overdraft) Agricultural Loan Women EntrepreneurshipCash credit (Hypothecation):Cash Credit allowed against hypothecation of good is known as Cash Credit (HYPO) limit. In case of hypothecation, the borrower retains the ownership and possession of goods on which charge of the lending bank is created.Under this arrangement a credit is sanctioned against hypothecation of the raw materials or finished goods. The letter of hypothecation creates a charge against the goods in favor of the Bank but neither the ownership nor its possession is passed on to it; only a right or interest in the goods is created in favor of the Bank and the borrower binds himself to give possession of the goods to the bank when called upon to do so. When the possession is handed over, the charge is converted into pledge. This type of facility is generally given to the reputed borrowers of undoubted integrity. Charge of Uttara bank limited is 15%. The bank should take the following precaution. The banker should carefully verify the stocks of hypothecated goods and their market price. Stocks should be duly insured against fired burglary. Bank should try obtaining sufficient collateral security. Periodical statement of stock duly signed by the borrower should be obtained. The goods are readily saleable and have good demand in the market. The borrower should be trustworthy and prudent customer. The price of the goods, offered as security, is to be calculated as per purchase price or market price whichever is lower. The price of goods is steady etc.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. Banks retain the effective control of the pledged goods. Pledge goods may be stored in a go down of the borrower but under lock and key of the bank. Banks guards are posted to protect the go down sometimes; pledges goods are in Banks go down.For CC loan every individual have to show some papers of their property. These are -Original title deed Bia deed(minimum 25 years ownership) Mutation porcha Land revenue receipt and holding tax receipt. Maathjoripporcha. RAJUK Approval Plan. Picture of the property. Owners photograph (4 copies). Valuation certificate. NEC(Non Encumbered Certificate) Location Map.If a person wants to take CC loan for his shop he has to submit some papers. These are- Applicants photograph. Up-to-date trade license. Contract deed of rental shop. Stocks of goods position. Balance sheet of 3 years. Account statement. TIN Certificate. National ID Card.

Small Business Loan :In case of SBL the borrower will get loan from the bank against his business. Here the bank will charge against the amount of loan. Maximum limit of the loan is TK 5 lac. Uttara bank Ltd Charges 15% interest against the amount.Bank will obtain following documentation from the borrower. Photographs of borrower. Commissioner Certificate/ ID card/ Passport/ Photocopy as the identity of the borrower. Photographs of the mortgage property. Documentation of property (Dalil,Parcha,Khajnarasit)etc. Valuation of the property. Audit report of the property. Six months bank statement. Report of CIB.Consumer credit schemesThe Bank distributed loan of Tk.6.4 million and 886.7million during the year 2010 under two special project namely Uttara Consumer Loan Scheme and Uttaran House Repairing and Renovation Scheme respectively . The outstanding balance of the same stood at Tk. 84.1 million and Tk 4,315.5 million respectively at the end of the year 2010.It may be mentioned here that the recovery rate in these schemes is satisfactoryPrudential Regulations for Consumer Financing Regarding financing the purchase of used vehicles Bangladesh Bank, Banking Regulation & policy Department, Head office, Dhaka issued a BRPD Circular letter No. 15 dated 20/12/2010 in relation with financing on Auto vehicles loan which is respected below, for meticulous compliance, Banking Regulation & policy Department Bangladesh Bank, Head Office, Dhaka-1000.Prudential Regulation for consumer Financing please refers to Regulation 21 of Guideline for Regulation for Auto (Loan) Circular vides BRPD Circular No.33 dated November 2010.

Special features: No collateral security is required. Quick sanction. Simple rate of interest. Maximum loan amount Tk 3,00,000/- 5% Incentive on total interest charged.

Personal Loan:The banks desirous of financing the purchase of used vehicles shall prepare uniform guidelines for determining value of the used vehicles, however, the bank shall only finance the vehicles imported as described in the existing import policy order, to cater the urgent financial need of the service holders having limited income bank introduced loan scheme. The outstanding balance of the same stood at Tk2.0 million at the end of the year 2010.Special features: Any permanent salaried employee aged between 20 to 55 years is eligible to loan. No collateral security is required. Maximum amount of loan Tk 100000/- Maximum period of loan upto 3 years.

Uttaran housing Repairing Loan: In case of UHRL the borrower will get loan from the bank by giving mortgage of his property. Here the bank will charge against the amount of Loan. Maximum limit of the loan is TK.25 lac. Uttara bank Ltd charges 15% interest against the amount.Bank will obtain following documentation from the borrower: Photographs of Borrower. Commissioner Certificate/ ID card/ Passport photocopy as the identity of the borrower. Photographs of the mortgage property. Documentation of property (Dalil, Parcha, Khajna, Rasid etc.) Valuation of property Audit report of the property Six months bank statements. Report of CIB.Purpose: To help genuine House/ Building/ Flat owners to undertake repairing, renovation works for better living or increasing rental income. To help the owners of House/ Building/ Flat to get loans at a minimum time & without any hurdles. To contribute towards development of socio-economic condition of the society. To improve the standard of service holders and self-employed persons or Retired Government Officers, excluding Businessmen, developer.

Interest and other charges:Interest: 15.00% per annum with yearly rest subject to change that may be made by the Bank from time to time. Processing Fees: @TK 1000.00 (Taka One Thousand) only per lac to be realized before processing of loan. Processing fee to be refunded deducting TK.500.00 (Taka Five Hundred) only as service Charge per proposal in case of it is rejected Cost of Application form & Prospectus: TK 200.00 (Taka Two Hundred) only.If loan installments are regularly & timely paid without any default, the borrower will be allowed incentive at the rate of 5% of the total interest charged which will be refunded on full adjustment of the account.

Repayment period: The loan is to be repaid by equal by monthly installments including interest maximum within 8 (Eight) years for loan above TK 5.00 lac (Taka Five Lac) only. Repayment will start after 3 (Three) months of availing 1st installment of the loan. Loan installments will have to be paid within 10th bay of every month. If any installment is not paid within 10th day of the month, the borrower will be treated as defaulter and penal interest @ 2% per month will be charged on the defaulted amount.

Security: Registered Mortgage of the property where against loan is to be availed by deposit of original Title Deed with chain of documents. Registered Irrecoverable General Power of Attorney empowering the Bank to sell the mortgaged property as and when required. An undertaking by the borrower in banks prescribed form to pay monthly installments regularly in time. Postdated cheque for all installments to be deposited in advance. Personal Guarantee of Spouse or any other person acceptable to the bank is to be obtained. The following papers have to submit while applying for loan- Application in prescribed form duly filled in all the columns and signed by the applicant. Personal Net Worth statement of the client. Lawyers opinion on the documents of the properties.

Benefit of the scheme:The genuine House/ Building/ Flat owners of small and fixed income group or retired persons may avail of the opportunity to repair, renovate their own house according to their need and repayment capacity.

Eligibility of the client: Any owner of House/ Building/ Flat aged between 30 to 55 years will be eligible to get loan under this scheme who are financially capable to repay the loan having income or additional income from own source and added rental income to be guaranteed after utilization of the proposed loan. In case of age bar of applicants the proposals may be considered for sanction if the guarantor is found good or other source of income of the applicant covers the installment of the loan. The House/ Building/ Flat to be repaired and / or renovated by the loanee should not be older than 20 years.

The monthly income will be certified by the employer of the concerned loanee in case he is a service holder. The employees or their dependent of Uttara Bank Ltd. Are not eligible to get loan under this scheme. The applicant must have a saving Account with the branch of the Bank from where he / she want to avail of the loan. Bank reserves the right to accept or reject any application without assigning any reason whatsoever.

Inland Bill Purchase (IBP):Uttara Bank Limited started granting of credit facility against Inland Bill Purchase by issuing the Instruction Circular No.243 dt. 17-01-99. subsequently certain amendments have also been made there to provide Credit Division.All concerned are hereby instructed to observe the following procedure for granting of credit facility against Inland Bill Purchase (IBP): Only those bills will be purchased which arise out of genuine business transactions of manufacturing units/concerned. The concerned branch allowing IBP facility must see that the bill has been drawn by the party himself and he is not the purchaser of goods/services or endorser of the bill. The applicant requesting for IBP facility will have to submit all the shipping documents as required in the ILC opened by buyers bank. On receipt of acceptance and maturity date for payment of the bill from ILC opening bank, our concerned branch will invariably verify, by physical contact with concerned ILC issuing bank, the genuineness of the said acceptance letter by relationship Manager/ second Officer/ Dealing officer (not bellow Principal Officer) with authorized signature to be counter signed by the branch incumbent. The branches must not purchase Bill against ILC opened by any of our Bank branches. In case of any need for purchasing against ILC of our bank, prior permission from Head Office is to be obtained. The loans under IBP will be allowed by the concerned Branch Manager as per his above discretionary power. The loans falling beyond his discretionary power will be allowed only on sanction from the concerned Zonal Head or Head Office as the case may by. In case the liability against any IBP is not adjusted even within 30 days after due date of payment, the matter shall be referred to Head Office, International Division giving full particulars of bills/LCs for taking up the issue by them for settlement. The following charges and interest are to be realized:1. Handing Charge: 0.25% of bill value with minimum TK.25.00 and maximum TK.2000.002. Rate of interest: 13.00% per annum with quarterly rest subject to change that may be made by the bank from time to time. The following papers and change documents are to be obtained/ executed by the party before allowing IBP.1. Loan application ( as per format in annexure A)2. Single/ Double Party DP note (AS applicable)3. DP Note delivery Letter (where guarantor exists)4. Letter of continuity5. Revival Letter Form-I6. Revival Letter Form-II (where guarantor exists)All concerned must comply the instructions of this circular meticulously while granting credit facility against IBP.

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. For giving these types of loan, officer makes loan proposal and sends it to H/O for approval. After getting approval from H/O, bank grants loan in the form of LTR. Advance against a Trust Receipt obtained from the Customers are allowed to only first class tested parties when the documents covering an import shipment or other goods pledged to the Bank as security are given without payment. However, for such advances prior permission/sanction from Head Office must be obtained. The customer holds the goods or their sale-proceeds in trust for the Bank, till such time, the loan allowed against the Trust Receipts is fully paid off.The Trust Receipt is a document that creates the Bankers lien on the goods and practically amounts to hypothecation of the proceeds of sale in discharge of the lien.

Overdraft:Overdraft is a loan. A person must need to have cash deposit if a person wants to take this loan. If a person has a FDR or MDS deposit in UBL he can get the loan. For MDS owner needs to pay 15% loan interest. For FDR owner needs to pay loan interest up to 2% than his FDR interest rate. Overdraft loan can be given to government employee. In that case they need to show land security and the payable interest rate is 16%. 25% advance loan can be given by the bank on work order value.Agricultural Loan:At present the bank is disbursing Agriculture Loan to the farmers directly through its all branches with simple terms and conditions. The persons interested in agriculture works , including men and women, landless, marginal farmers and shared croppers are eligible for receiving Agriculture Loan from the bank .The Agriculture credit sectors of banks are crops, irrigation, equipments, agriculture machineries ,livestock, fisheries (including Shrimp) and poverty alleviation etc. This loan is basically given by UBL because of poverty reduction. The limit of this loan is 1 lac without showing any kind of property. But by showing property the loan is unlimited.

Women Entrepreneurship Loan:Woman can take this loan by starting a business. The limit of these loans is up to 15,00,000 and the interest rate is 10%.A women can get this loan up to 5,00,000 without showing any kind of property.

Distinguish Between Conventional Banking & Islamic Banking

Conventional Banking:A commercial bank is a type of retail bank that provides services, such as accepting deposits, giving business loans and basic investment products.

Islamic Banking:A banking system that is based on the principles of Islamic Law and guided by Islamic economics. Two basic principles behind Islamic banking are the sharing of profit and loss, significantly, the prohibition of the collection and payment of interest. Collecting interest is not permitted under Islamic law.

Difference between Conventional & Islamic Bank:Conventional BanksIslamic Banks

1. The functions and operating modes of conventional banks are based on fully manmade principles.1. The functions and operating modes of Islamic banks are based on the principles of Islamic.

2. The investor is assured of a predetermined rate of interest.2. In contrast, it promotes risk sharing between provider of capital(investor) and the user of funds(entrepreneur).

3. It aims at maximizing profit without any restriction.3. It also aims at maximizing profit but subject toIslamic restrictions.

4. It does not deal with Zakat.4. In the modern Islamic banking system, it has become one of the service-oriented functions of the Islamic banks to be a Zakat Collection Centre and they also payout their Zakat.

5. Lending money and getting it back with compounding interest is the fundamental function of the conventional banks.5. Participation in partnership business is the fundamental function of the Islamic banks. So we have to understand our customer's business very well.

6. It can charge additional money (penalty and compounded interest) in case of defaulters.6. The Islamic banks have no provision to charge any extra money from the defaulters. Only small amount of compensation and these proceeds is given to charity. Rebates are given for early settlement at the Bank's discretion.

7. Very often it results in the bank's own interest becoming prominent. It makes no effort to ensure growth with equity.7. It gives due importance to the public interest. Its ultimate aim is to ensure growth with equity.

8. For interest-based commercial banks, borrowing from the money market is relatively easier.8. For the Islamic banks, it must be based on a Banks approved underlying transaction.

9. Since income from the advances is fixed, it gives little importance to developing expertise in project appraisal and evaluations.9. Since it shares profit and loss, the Islamic banks pay greater attention to developing project appraisal and evaluations.

10. The conventional banks give greater emphasis on credit-worthiness of the clients.10. The Islamic banks, on the other hand, give greater emphasis on the viability of the projects.

11. The status of a conventional bank, in relation to its clients, is that of creditor and debtors.11. The status of Islamic bank in relation to its clients is that of partners, investors and trader, buyer and seller.

12. A conventional bank has to guarantee all its deposits.12. Islamic bank can only guarantee deposits for deposit account, which is based on the principle of al-wadiah,thus the depositors are guaranteed repayment of their funds, however if the account is based on the mudarabah concept, client have to share in a loss position.

The goals of Islamic banking are quite different from the goals of Conventional banking. The core difference between the goals of these two financial systems is that the former works for the benefit of overall society and for equitable allocation of resources through credit distribution while the latter works for the financial uplift of the rich and their owners. Islamic bank works for everyone, needing money to start or expand his business or produce value-addition whereas Conventional bank works for a specific class that is rich. The underlying objective of Islamic bank is to earn profit through horizontal distribution of financial resources while the objective of Conventional banks is to maximize its profit by concentrating the resources and charging high rates of interest.Necessary papers & documents needed to open an Account in Uttara Bank:There are various kinds of Bank Accounts which people are looking for. These accounts opening go through some procedure. Required information for opening a bank account varies from bank to bank. So in Uttara bank has some Procedure. They are: For an Individual Customer:a) Copy of the Passport, if available or Employers Certificate or Commissioners/Chairmans Certificate or Letter of Introduction by a person acceptable to the Bank.b) TIN Certificate, if applicable.c) Two recent passport size photographs duly attested by the Introducer.For Sole Proprietorship:a) Copy of Trade License.b) Two recent passport size photographs of the Proprietor/Signatory duly attested by the Introducer.c) Copy of the Passport of the Proprietor/Signatory, if available or Commissioners /Chairmans Certificate or Letter of Introduction by a person acceptable to the Bank.d) TIN Certificate.

For Partnership:a) Copy of the partnership Deed of the Firm.b) List of Partners with their address and phone number.c) Copy of Trade License.d) Extract of Resolution of the Partners of the Firm for opening the account and authorization for its operation duly certified by the Managing Partner of the Firm.e) For Registered Partnership, Certificate of Registration of the Firm along with duly certified copy of the Partnership Deed.f) Two recent passport size photographs of each Partner/Signatory duly attested by the Introducer.g) Copy of the Passport of each Partner/Signatory, if available or Commissioners/Chairmans Certificate or Letter of Introduction by a person acceptable to the Bank.h) TIN Certificate

Private & Public Limited Company:a) Certified true copy of the Memorandum and Article of Association of the Company.b) Certified true copy of Certificate of Incorporation of the Company.c) Certified true copy of Certificate of Commencement of Business of the Company, in case of Public Limited Company.d) Latest list of Directors with address and phone number along with Form XII.e) Extracts of the duly adopted Resolution of the Board of Directors of the Company for opening the Account and authorization for its operation duly certified by the Chairman/Managing Director of the Company.f) Copy of Trade License.g) Two recent passport size photographs of each Signatory duly attested by the Introducer.h) Copy of the passport of each Signatory, if available or Commissioners/Chairmans Certificate of Letter of Introduction by a person acceptable to the bank.i) TIN Certificate.

Association/Club/Trust/Society/Charity Organization/Educational Institution/Mosque/Madrasha:a) Certified true copy of Constitution and By-Laws/Memorandum and Article of Association/Trust Dead.b) Certified true copy of the Certificate or Registration/Permission from the concerned Government Department(s).c) List of Members of the Governing Body/Executive Committee with their address and phone number.d) Extracts of the duly adopted Resolution of the Board/Executive Committee/Governing Body for opening the Account and authorization for its operation duly certified by the Chairman/Secretary/President.e) Two recent passport size photographs of each Signatory duly attested by the Introducer.f) Copy of the Passport of each Signatory, if available or Commissioners/Chairmans Certificate or Letter of Introduction by a person acceptable to the Bank.

COMPLIANCE:a) Properly introduced.b) All requisite documents as stated in the Documents Check List have been obtained.c) All documents have been checked and found in order and supportive.d) Signing Authority of the Signatory/Signatories has been obtained and authenticated.

Conclusion:UTTARA Bank is one of the newest banks in Bangladesh. For that point of view, this bank is not highly experienced about the banking industry in this country. The more aggressive the bank will become the more intense the competition will be. In coming days they are to face various key challenges such as to satisfy the existing customers, to continue increasing penetration in the target market, to face the more aggressively net bank, to turn satisfied customer into fully satisfied customer.From the discussion it can be concluded that Uttara Bank Limited playing an important role in the economic development of the country and it has a prospect future to have a very good position in the Banking sector. To do this it should increase promotional activities to reach to the people easily as well as Uttara Bank Limited focus on major banking activities that may increase the bank ranking and financial performance position comparing with other banks. Such information assists the management of this bank in creating appropriate financial strategies for attaining the required planned financial performance.

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