Union Bank investment performance

Performance Analysis of mode-wise investment of the Union Bank
Limited, D.T Road Eidgah Branch, Chattogram
(This internship Report is submitted for the partial fulfillment of the Degree of Bachelor of
Social Science with major in Economics & Banking)
Prepared By:
Md Abdullah Al Munim Abir
Metric No: EB151083
Major: Economics & Banking
Program: Bachelor of Social Science
Semester: 8th
Internship Duration: 13th
January - 14th
April, 2019
Submission Date: 30 April, 2019
Department of Economics & Banking
Faculty of Social Science
International Islamic University, Chittagong

Performance Analysis of mode-wise investment of the Union Bank
Limited, D.T Road Eidgah Branch, Chattogram
(This internship Report is submitted for the partial fulfillment of the Degree of Bachelor of
Social Science with major in Economics & Banking)
Prepared By:
Md Abdullah Al Munim Abir
Metric No: EB151083
Major: Economics & Banking
Program: Bachelor of Social Science
Semester: 8th
Supervised By:
Md. Asad Iqbal Chowdhury
Lecturer in Finance
Economics & Banking
Supervisor Signature
Internship Duration: 13th
January - 14th
April, 2019
Submission Date: 30 April, 2019

Letter of Submission
30th
April, 2019
Md. Asad Iqbal Chowdhury
Lecturer
International Islamic University Chittagong
Subject: Submission of Internship Report.
Dear Sir,
With due respect, I would like to state that, it is a great pleasure for me to submit the
internship report on “Performance analysis of mode-wise investment of Union Bank
Limited, D.T Road Eidgah Branch,Chattogram” as a partial requirement of BSS
program.
The report is an outcome of 3 month of working experience as an intern of Union Bank
Limited, D.T Road Eidgah Branch, Chattogram. During my internship, I have tried to
give my best effort in preparing this report successful. I have gathered important
practical knowledge which help me in my professional life.
I gratefully acknowledge your assigning me this topic to work on your guidance in
completing this report. I feel obliged to express my gratitude to you for your cordial co-
operation & to give me as opportunity to study such an important topic. I sincerely hope
that you will appreciate my effort.
Thanking you for your kind supervision
Yours Sincerely,
Md.Abdullah Al Munim Abir
ID: EB151083
Program: BSS
Major in Economics & Banking

ACKNOWLEDGEMENT
At first I would like to express my deepest gratitude to almighty Allah for giving me
the strength and the patience to finish the task within the scheduled time.
I am deeply indebted to my honorable supervisor Md. Asad Iqbal Chowdhury,
Lecturer, Department of Economics & Banking. Without his support and
encouragement this report would not have been possible to enhance my practical
knowledge about the real economy world. His suggestions and comments to make the
report a good one was really a great source of spirit for me.
I would like to special thanks Mr. Chowdhury S M Atiqur Rahman Hyder (SAVP
& Head of Branch) & Md Ali Nowshad Chowdhury (PO & Manager Operation) at
Union Bank Limited, D.T Road Eidgah Branch, and respected executive helped me
doing my internship.
I received friendly cooperation from the officers and members of staffs of Union Bank
Limited, D.T Road Eidgah Branch. I want to express my cordial gratitude to them for
their cooperation without which it would not possible to complete the report.
I have prepared this report on the basis of our knowledge and understanding of the
program. I have tried to make it precise and concise as well as informative.
Finally, I want to thank my parents. Without their moral support, a report like this would
not come into reality. However, I take responsibility for any deficiency that might crept
in this report.

EXECUTIVE SUMMARY
As a part of BSS program, it is required to have internship program with an organization
for three months. Therefore, I have completed my internship with Union Bank Limited,
D.T Road Eidgah Branch, Chattogram and prepared the report on “Performance
analysis of mode-wise investment of the Union Bank Limited: A study on D.T Road
Eidgah, Chattogram”. During the internship period, I have tried my best to get practical
knowledge about their overall banking operation with special emphasis on the
investment performance.
Investment is the main part of bank as the greatest share of total revenue of the bank is
generated from it and risk is centralized in it. The investment policy of Union Bank
Limited is to invest on the basis of profit-loss sharing (PLS) system in accordance with
the terms and conditions of Islamic Shariah.
The main objective of the study is to performance analysis of mode-wise investment of
Union Bank Limited, D.T Road Eidgah branch, Chattogram. For collecting the data,
both primary and secondary sources have been used to ensure that the information
compiled in the report is accurate.
The investment department of Union Bank Limited, D.T Road Eidgah branch is running
efficiently where Bai-Murabaha is the main investment mode of the branch. This branch
invests highly in SME and Agricultural sector and profit on investment which is
increasing gradually. In light of findings, some recommendations are also given in this
report. Union Bank Limited, may follow these suggestions to provide better service to
the customers.
To sum up, this report has aspired to attain conclusion. Union Bank Limited is a Shariah
based Islamic bank in nature. It is now progressing rapidly in the country’s banking
sector. Union Bank Limited is facilitating all modern banking services to its clients to
contribute in sustainable economic growth as well as moral, material development of
human beings.

Table of Contents
Chapter Particulars Page
Chapter: 1
Introduction of the study
1.1 Introduction 1
1.2 Objectives of the study 1
1.3 Methodology of the study 2
1.4 Scope of the study 3
1.5 Limitations of the study 3
Chapter: 2
Union Bank Limited: A bird’s eye view
2.1 Background of Union Bank Limited 5
2.2 Islamic banking 6
2.3 Mission of Union Bank Limited 6
2.4 Vision of Union Bank Limited 6
2.5 Commitments 7
2.6 Objectives of Union Bank Limited 7-8
2.7 Corporate Slogan 8
2.8 Special feature of Union Bank Limited 9
2.9 Corporate Profile 10
2.10 Organization of structure of Union Bank Limited 11
2.11 Management Structure of Union Bank Limited, DT Road
Eidgah Branch
12
2.12 Five years financial performance at a glance 13-15
2.13 Business Plan of Union Bank Limited 16
2.14 SWOT Analysis 17
2.15 Union Bank Limited product operated according to the Islamic
Shariah
18
2.16 Product & Services 19
2.17 General Banking and Deposit Management 19
2.18 Investment Department 19
2.19 Foreign Exchange Department 19-20
Chapter: 3
Different investment modes of Union Bank Limited

3.1 Investment Activities of Union Bank Limited 22
3.2 Objectives and Theoretical aspect of Investment Operation 23
3.3 Sources of Funds 24
3.4 Main Mechanism and modes of Union Bank Limited 25
3.5 Features of Investment Modes 26-32
3.6 Different types of Investment made by Union Bank Limited 33-35
3.7 How to investment is operated in Union Bank Limited 36
3.8 Investment Operation Structure 37
Chapter: 4
Performance analysis of different modes of Union Bank Limited DT Road
Eidgah Branch
4.1 Different mode-wise investment using Union Bank Limited
D.T Road Eidgah Branch
39
4.2 Analyzing the year wise Bai-Murabaha SME Non-Investment 40
4.3 Analyzing the year wise Bai-Murabaha Investment against
MTDR/MMPS/MMDS
41
4.4 Analyzing the year wise Bai-Murabaha Women Entrepreneur
Investment
42
4.5 Analyzing the year wise Bai-Murabaha Agriculture
Investment
43
4.6 Analyzing the year wise Bai-Murabaha SME Investment 44
4.7 Analyzing the year wise Musharaka Documentary Bills
Investment
45
4.8 Analyzing the year wise HPSM Transport Investment 46
4.9 Analyzing the year wise HPSM Consumer Durable Scheme
Investment
47
Chapter: 5
Findings, Recommendations & Conclusion
5.1 Major findings from the analysis 49
5.2 Recommendations 50
5.3 Conclusion 51
Appended Parts
References & Bibliography 52

Chapter-One
Introduction of the study

1
1.1 Introduction
As a part of practical knowledge, I was assigned to Union Bank Limited, D.T Road,
Eidgah Branch, Chattogram, for three months to blend my academic knowledge with
that of practical ones and have an insight into the management of organization in real
life scenario. I worked there on a regular basis aiming to acquire practical knowledge
which may help me in my practical life. I have tried to understand these complex and
characteristic of natures, functions etc. I also tried to gather all the information and
knowledge from different text books and websites to understand the difficult task of a
bank. In this report, I have presented those in proper, chronological and precise way.
We all know that bank is a financial service oriented organization, which collects
money from the savers, disburse fund to the borrowers and provide many kinds of
financial services. The importance of banking service is undoubtedly highly across the
world. Banks have been efficiently contributing towards the promoting economic
development and growth for a long time. The task is performed by the banks which is
idle funds (earning no investment income) from savers to investors is called financial
intermediation and it is extremely important for a free market economy.
1.2 Objectives of the study
The main objective of the study is to performance analysis of mode-wise investment of
Union Bank limited D.T Road Eidgah Branch, Chattogram and the report also has some
specific objectives which are as follows:
 To get an overview of Union Bank Limited.
 To know about the different investment modes of Union Bank Limited.
D.T Road Eidgah Branch, Chattogram.
 To analyze the performance of mode-wise investment of Union Bank
Limited. D.T Road Eidgah Branch, Chattogram.
 To find out the problems that hinders the investment performance and
provide the corrective measures to overcome.

2
1.3 Methodology of the Study
Data Sources and referred are both primary and secondary in nature. The required
primary data were collected by personal interviews. The sources of secondary data are
published articles and periodical and annual report of Union Bank, daily newspapers
etc. Methodology of this report includes the following:
 Primary
 Secondary
Source refers to the origin from where we have collected all the information. The
reliability of the report depends on the source of the information. Both primary and
secondary source of the report writing is discussed below:
1.3.1 Primary Sources:
The method that was used to collect the primary data is as follows:
 Personal observation
 Information queries: Through face to face conversation with officers.
 Practical desk work
1.3.2 Secondary Source:
The method that was used to collect the Secondary data is as follows:
 Information regarding the background history of Union Bank Ltd. and its
services that are currently taking place in our country are collected from the
Website of Union bank Ltd.
 Annual report of Union Bank Ltd
 Bank rate sheet.
 Different circular sent by head office of Union Bank Ltd. and Bangladesh
Bank.

3
1.4 Scope of the Study
 Investment appraisal system of Union Bank Limited
 Procedure for different investment facilities
 Portfolio of Investment management of Union Bank Limited
 Organization structures and responsibilities of management
Each of the above areas would be critically analyzed in order to determine the efficiency
of Union Bank’s investment appraisal and management system.
1.5 Limitations of the Study
This study of a short course of time is not free from. I have faced some obstacles while
conducting the study, these are:
 Lack of sufficient knowledge: To study about the topic however the study was
not done very successfully due to inexperience and lack of sufficient
knowledge.
 Time limits: The budgeted time of the study was limited & is not sufficient to
achieve overall knowledge about the organizations.
 Limitation of Scope: While collecting data, the authority did not disclose much
information as most of the information is associated with different clients of the
bank and that information can’t be disclosed to other parties due to the
confidentiality of the bank.
 More formalities: In continuing our research paper we have to follow more
formalities. The process of collecting data is so time consuming and more
difficult to smooth progress of work.
 The data requires for sufficient analysis for report writing could not be collected
due to excessive workload.

4
Chapter: Two
Union Bank Limited: A bird’s eye view

5
2.1 Background of Union Bank Limited
Union Bank Limited is one of the fourth generation’s commercial bank based on
Islamic Shariah in Private sector of Bangladesh. It was shaped on 1st
April, 2013 with
determine to give a worldwide chances to their customers. It began operation as Shariah
based bank in the private segment on 20 May, 2013 by opening Gulshan Branch. It has
an approved capital of Tk 10,000 million, paid up capital of Tk 4,280 million and profit
into 428 million. It renders a wide range of business keeping money benefit inside the
Bank Companies Act, 1991 and 2013 under Islamic Shariah. The individuals Board of
Directors have superintended this bank.
Islamic managing an account is currently spread over the whole world, in both Muslim
and non-Muslim nations, as a suitable element and budgetary delegate, the second 50%
of the twentieth century saw a remarkable moving of intuition in formulating keeping
money arrangement and system on the premise of the "Shariah".
The bank always try to provide valuable service to their client. However the
incorporation of the most recent saving money innovation and furthermore Shariah
based items. Bank was prevailing to open 77 new branches at different monetarily vital
areas and furthermore some country zone. While 26 branches are in Chattogram city
and 51 branches are in different regions. As per their Vision and Mission, they are
making a decent attempt to give range of administrations whether the customers are
singular, SME business visionaries or modern firms. To guarantee quick, exact and
viable client administrations and web based saving money offices they have officially
made a concurrence with the Vendor of Ababil. Not just by innovation, their bank has
likewise plan to give physical managing an account offices to every one of their clients
and bring the unbanked rustic individuals under the umbrella of keeping money benefit.
In the age of 21st
century we as a whole realize that all Commercial Bank is presently
giving abroad offices. Union bank has just got the SWIFT code and their talented and
effective authorities are fruitful to exchange cash from outside .UBL representatives
are focused on the most astounding morals and a set of principles Their workers share
a typical security and a solid conviction that the fundamental standards of corporate
administration, decency, straightforwardness, responsibility and duty are applicable in
all that they do.

6
2.2 Islamic banking:
Islamic banking is described as a system of financial intermediation that avoids receipt
and payment of interest in its transactions and conducts its operation in accordance with
the objectives of an Islamic Economy. Islamic Banking is based on the Islamic Legal
concepts Shirkah (partnership) and Mudarabah (profit-sharing).There are four primary
objectives as stared below:
1. To provide contemporary financial services in accordance with the Shariah.
2. To establish a direct relationship between the bank’s return and investment.
3. To allocate financing to those projects that will benefit society the most.
4. To ensure equitable distribution income and resources to all the parties to the
transactions.
As Shariah Based bank, Union Bank Limited strictly follow these four rules.
2.3 Mission of Union Bank Ltd
 Emancipate their poor people from abject poverty by empowering them with
smooth banking service.
 Be the leading provider of Islamic Shariah compliant banking services in
Bangladesh.
 Provide fast, accurate and satisfactory customer service by maintaining
corporate and business ethics and transparency at all levels.
 Ensure technology based professional banking environment with strong capital
base.
 Thrust on investment facilitating banking product.
2.4 Vision of Union Bank Ltd
To become socially committed world class financial institution.

7
2.5 Commitments
 For Customers
To become most caring Bank- by providing the most caring and efficient service
in every area of business
 For employees:
By encouraging the employee they try to bring out the best performance from
the employee.
 For their shareholders
By ensuring fair return on their investment through generating stable profit.
 For their community
By assuming role as a social responsible corporate entity in a tangible manner
through close adherence to national policies.
2.6 Objectives of Union Bank Ltd. Limited:
1. Provide secured banking services to the unbanked individuals all through the
nation.
2. Build agent booths everywhere throughout the country and make money related
administration business people.
3. Setting up District/Upazila Level back office all through the country.
4. To manage an account with present day worldwide administration they mix
their operational conventional.
5. Through elevated requirement and quality managing an account they encourage
their partners.
6. To lead outside trade business like universal cash settlement organization
accordingly on and in national.
7. Families of expatriate Bangladeshis get foreign inward remittance.
8. Customer can pay utility bill, passport fee and social safety net payment services
and so on.
9. Process Agricultural, SME and Retail credit from the agent points.
10. To degree credit office to the customer.
11. To give standard and speedy administration into the customer.
12. To degree custodial administrations for instance, locker.
13. To degree general saving money administrations to the customers.

8
14. Buying and offering of remote monetary standards.
15. Enable online business benefits through the agent points.
16. Introduce school banking in the locality.
17. Train and develop the prospective SME business people.
18. Financing solar home system and sustainable power source segments as a green
banking initiative.
19. Give a faster service
20. Offer interest fee banking services to the customers.
21. Establishing a group of entrepreneurs with Islamic values.
22. Strengthening the qualitative foundation of Islamic Banking system.
23. For Islamic Banking they upgrade Technology and Human Resource.
24. Contributing substantially in the global profit of Union Bank Ltd. Limited.
2.7 Corporate Slogan
Union bank always try to establish vigorous presence in the global marketplace to
uphold and their slogan “Local Bank, Global Opportunity”

9
2.8 Special Feature of Union Bank Limited
As an Islamic bank, Union bank are unique in every positive aspect. They provide a
bunch of state-of-art banking services within the wide bracket of Shariah. They are
unique with their product strict with their principle and uncompromising with their
honesty. Some of their special features that make us notable in Islamic banking sector
are as follows:
 All activities of UBL are conducted under a profit/loss based system according
to Islamic Shariah.
 The head office and the other branches have been provided with the State-of-
the-art computer hardware as well as software to carry on day-to-day accounting
and routine work efficiently and quickly from the beginning of the banking.
Bangladeshi software has been introduced in this feature to promote the local
developers.
 Union Bank Ltd. has implemented successfully Automated Teller Machine
(ATM) /DBDIT card transaction from 2013. Through Automated Teller
Machine (ATM) /Debit card, customer can avail the facilities like withdrawal
money, balance inquiry and purchase goods from Point of sale (POS) using
ATM Booth and POS.
 Bank believes in providing dedicated services to the clients imbued with Islamic
spirit of brother hood, peace and fraternity.
 Its investment policies under different modes are fully Shariah compliant and
investment monitored by the board of Shariah Council.
 The bank is committed towards establishing welfare-oriented banking system
to meet the needs of low income and underprivileged class of people.
 The Bank upholds the Islamic values of establishment of a justified economic
system through social emancipation and equitable distribution of wealth.

10
2.9 Corporate Profile
Registered Name of the Company Union Bank Limited
Legal Form A schedule Commercial bank
incorporated on March 7, 2013 as a
Public Limited Company under the
Companies Act, 1994 and Bank
Companies Act, 1991.
Registered Office & Head Office Bahela Tower -72, Gulshan Avenue,
Gulshan -1,Dhaka-1212,Bangladesh
Email info@unionbank.com.bd
Web www.unionbank.com.bd
SWIFT UBLDBDDH
Certificate of Incorporation Number C-107837/13, Dated: March7, 2013
Certificate of Commencement of
Business Number
Issue No 34637-43, Dated: March7,
2013
Bangladesh Bank Approval Number BRPD (P3)745(60)/2013-1153 Dated:
March 10, 2013
VAT Registration Number 18121026762
Tax Payer’s Identification Number 796739852073
Number of Shareholders 25
Number of Employees 1308
Number of Branches 68

11
2.10 Organization Structure of Union Bank Limited

12
2.11 Management structure of Union Bank Limited, D.T Road Eidgah,
Branch
Senior Assistant Vice President
& Head of Branch
Principal Officer & Manager
Operation
Principal Officer
Officer (Cash)
Officer
Assistant Officer

13
2.12 Five years financial performance at a glance
SL
No.
Particulars 2017 2016 2015 2014 2013
01 Authorized
Capital
10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
02 Paid-up
capital
5,272.96 4,708.00 4,280.00 4,280.00 4,280.00
03 Shareholder’s
Equity
6,902.50 6,012.42 5,111.96 4,623.64 4,513.09
04 Total Capital
(Tier-1 + Tier
2)
8,053.40 6,797.42 5,607.88 4,963.64 4,588.09
05 Statutory
Reserve
876.88 527.66 233.24 75.58 33.46
06 Total Assets 131,677.57 83,917.24 63,059.96 40,951.53 17,081.14
07 Total
Liabilities
124,775.07 77,904.82 57,948.00 36,327.89 12,568.05
08 Deposits 114,049.89 74,250.56 55,568.42 34,767.31 12,165.19
09 Total
Investment
and Advance
100,753.55 67,150.19 45,592.87 28,277.79 7,308.82
10 Total
Contingent
Liabilities
7,393.03 6,465.39 4,642.78 1,474.49 7.17
11 Total Risk
Weighted
Asset
68,696.65 58,315.04 42,247.72 34,552.80 13,313.60
12 Total Fixed
Assets
850.00 829.42 679.20 411.28 86.29
13 Operating
Income
4,011.08 3,179.45 2061.29 982.34 401.29

14
14 Operating
Expenditure
1,738.31 1,403.84 1,016.47 526.89 155.27
15 Profit before
provision &
Tax
2,272.77 1,775.61 1,044.81 455.45 246.29
16 Profit before
Tax
1,745.87 1,472.11 788.31 210.55 167.34
17 Net profit
after provision
& Tax
890.08 849.61 488.31 110.55 87.34
18 Foreign
Exchange
Business
a)Import
Business
15,008.00 14,659.00 5,958.60 1,514.16
b)Export
Business
41,337.00 30,974.00 15,816.42 8,698.41
c)Remittance 2,201.00 3,268.60 919.66 2.73
19 No. of Foreign
Correspondent
20 Profit Earning
Assets
115,246.54 74,360.93 55,788.92 34,497.95 14,085.15
21 Nonprofit
Earning Assets
16,141.02 9,556.31 7,271.04 4,453.58 2,995.98
22 Investment as
a % of Total
Deposit
88.34% 90.44% 82.05% 81.33% 60.08%
23 Capital To
Risk weighted
Assets Ratio
(CRAR)
13.27% 14.31% 34.46%
24 Dividend

15
a)Cash
b)Bonus 10% 12%
c)Right Share
25 Cost of Fund 9.35% 9.53% 11.82% 12.36% 7.78%
26 Net asset value
per share
27 Earnings per
share (EPS)
1.69 1.80 1.14 0.26 0.20
28 Price Earnings
Ratio (times)
29 Return on
Assets (ROA)
0.83% 1.16% 1.66% 1.11% 1.44%
30 No. of
shareholders
25 25 26 26
31 Number of
Employees
1308 1051 832 600 317
32 Number of
Branches
68 57 44 27 11
Source: Annual Report

16
2.13 Business plan of Union Bank Limited
For General Banking
 Mobilize low-cost/no cost deposit of different natures and financing in the form
of less risky investment on priority basis.
 Expand country wide branches/booths in urban as well as rural areas.
 Provide best services by attending clients on call.
 Be the front runner in establishing the concept of Green Banking in Bangladesh.
 Meet up corporate social obligations by participating/promoting the CSR
activities.
For Corporate Services
 Focus on foreign currency business through export and remittance by
expatriates as well as service providers.
 Operate central online banking system.
 Attain strong foundation /financial footing of the bank rather earning more
profit.
 Remain vigilant to manage & minimize all the risks inherent with the banking
investment

17
2.14 SWOT Analysis
STRENGTH WEAKNESSES
 A decent productivity and
acceleration through interior
capital era.
 One of the most astounding
quantities of Branches including
provincial zones.
 Energetic and experienced best
level administration.
 Enduring development.
 One of the most astounding
Interest payers on stores
 Giving higher consideration on
Fixed Deposits: high cost.
 Undiversified Portfolio
 Central based Decision-Making
 Technological Updates
 Less Promotional Activities
 Less Concentration on Customer
Service because of Man Power.
Opportunities Threat
 Market Penetrations through
diversified products.
 Business exposition through
opening branches in the remote
areas of the country
 Online banking activities.
 Expanding its ATM’s reach to
the customers.
 Amplified competition in the
same market.
 Forcibly lowering of Lending
Rate because of the market
structure.
 Government rules and economic
changes
 Political unrests and associated
concerns

18
2.15 Union Bank Ltd product operated according to the Islamic
Shariah
“Allah has permitted trade and forbidden interest” (verse 275 of Sura Al-Baraka). And
as such Union Bank Limited operates with the objectives and commitment to
implement the economic and financial principles of Islam in banking arena blending
Islamic values and modern technologies with a view to achieving complete success in
this world and hereafter which are as follows:
 To provide quality service to our customers.
 To set high standard of Integrity.
 To extend their customers innovation services acquiring state-of-the-art
technology blended with Islamic principles, and bring total satisfaction to our
clients and employees.
 To expand Islamic banking through welfare oriented banking system.
 Ensure equity and justice in economic activities.
 Extend financial assistance to poorer section of the people, and
 Achieve balanced growth & equitable development
2.16 Products & Services
2.16.1 Deposit Products
1. Al-Wadeeah Current Accounts
2. Mudaraba Saving Deposit Accounts
3. Mudaraba Term Deposit Accounts
4. Mudaraba Short Notice Deposit Accounts
5. Mudaraba No Frill Savings Accounts.
2.16.2 Investment Products
1. Bai Murabaha
2. Bai Istisna(Pre Shipment Investment)
3. Bai Salam
4. Bai Mujjal Investment
5. Quard against MTDR

19
2.16.3 Deposit Scheme
1. Mudaraba Monthly Profit Scheme
2. Mudaraba Double Benefit Deposit Scheme
3. Mudaraba Millionaire Saving Scheme
4. Mudaraba Corepoty Saving Scheme
5. Mudaraba Monthly Saving Scheme
6. Mudaraba Pension Saving Scheme
7. Mudaraba Marriage Saving Scheme
8. Mudaraba Hajj Saving Scheme
9. Mudaraba Mohor Saving Scheme
10. Mudaraba Barakah Deposit Scheme
2.17 General Banking & Deposit Management:
 Account opening and KYC procedures.
 Issuance of DD/TT/PO/FDR.
 Inter Bank Transaction, OBC/IBC.
 Account section.
 Clearing Section.
 IT Section.
2.18 Investment Department
 Investment/Credit Proposals Processing Procedures.
 Documentation and Loan Disbursement Procedures.
 Overview on all returns.
2.19 Foreign Exchange Department
2.19.1 Cash L/C
1. Opening of L/C
2. Lodgment of Import Bill.
3. Payment against Import Bill.
4. B/E Matching.
5. IMP Reporting.

20
2.19.2 BTB L/C
1. Export L/C Checking.
2. Opening of BTB L/C (Local/ Foreign/ EDF/ EPZ).
3. Lodgment and confirmation of maturity date.
4. Allowing of PC.
5. Payment against realization of Export Proceeds/ Forced Loan.
6. B/E Matching.
7. Reporting.
2.19.3 Export
1. Scrutinizing/ Negotiation/ Send on Collection.
2. Follow-up.
3. Realization.
4. Reporting.
2.19.4 Foreign Remittance
Inward
1. FDD.
2. FTT.
3. Others.
Outward
1. Endorsement of Traveling.
2. Education/ Treatment/ Others.
3. Cash Rebate.
4. FC issuing.
5. FDD/ FTT

21
Chapter: Three
Different Investment Modes of Union Bank Limited

22
3.1 Investment Activities of Union Bank Limited
Investment is the action deploying funds with the intention and expectations that they
will earn a positive return to the owner. When money is deposited with an Islamic Bank,
the bank, in turn, makes investments in different forms approved by the Islamic Shariah
with the intent to earn a profit. As, Islamic bank does not invest in loans and fixed
interest securities and it can use Islamic modes of investment to earn profits for wealth
organization. UBL establishes and participates in many project with their client as a
partner and bears the risk along with the client on a proportionate basis. So UBL collect
deposits and invest the same based on the profit-loss sharing. Every Islamic Bank goes
for the investment mainly which are long term and profitable in nature and in this case
UBL is not different. As a shariah based bank, UBL give highly focus on the investment
that will generate more employment. So it needs to cautious in investment decisions.
To ensure proper investment UBL always go with in-depth study before making an
investment. So in the next phase we are going to demonstrate the way UBL manage
investment.
Union Bank Ltd has made a positive contribution towards the socio economic
development of the country.

23
3.2 Objectives and Theoretical Aspect of Investment Operation
The Objective and theoretical aspect of investment operation of UNION BANK LTD.
are to inept fending strictly in accordance with the principles of Islamic Shari’ah and
those are:
1. To do away with disparity and establish justice in trade, commerce and Industry.
2. To diversity its investment portfolio by size of investment portfolio by sectors,
by economic purpose, by securities and by geographical area including
industrial, commercial & agriculture.
3. To ensure mutual benefits both of the bank and the investment client by
professional appraisal of investment proposals, judicious sanction of
investment, close and constant supervision and monitoring thereof.
4. To make investment keeping the socio-economic requirement of the country in
view.
5. To increase the number of potential investors by making participatory and
productive investment.
6. Employment generation with a view to accurate sustainable socio-economic
growth and up liftmen of the society.
7. To shun even highly profitable investment in the fields forbidden under Islamic
Shari’ah and are harmful for society.
8. The bank extends investment under the principle of Bai-Murabaha, Bai-
Muazzal, and Hire Purchase under Shirkatul Melk and Maskaraka. The bank is
making sincere efforts to go for the finance various development scheme of
poverty alleviation, income and investment under Mudaraba principle in near
future.
9. To invest in form of good and commodities rather than give out cash money to
the investment clients.
10. To contribute to social up liftmen, and sustained economic growth of the
country.
11. Investment to trade, commerce, industry, foreign trade, small scale industry,
transportation, service sector.

24
3.3 Sources of Funds
The financial resource of the Islamic banks consists of original capital resources
comprising paid-up capital and reserves and funds rose through borrowing from the
central bank and other banks according to the Islamic Shari’ah, and issue of Islamic
financial instrument. The major part of their operational fund is, however, derived from
the different categories of deposits accepted on Islamic principles of AL-Wadiah and
Mudaraba. For the sake of ease of understanding we call these two sources as ‘Primary’
and ‘secondary’. These are discussed as under.
3.3.1 Primary Source
Paid up Capital
Paid up Capital is the amount of money a company has received from shareholders in
exchange of money.
Islamic banks are public limited companies incorporated under the companies Act,
which are listed on the stock exchange. Individual, institutions, local and foreign, have
subscribed there.
3.3.2 Secondary Source
Mobilization of Deposit
Like interest-based conventional banks, the main function of Islamic banks is to mobilize
saving and provide financial support to the entrepreneurs. But Islami bank doesn’t pay
direct interest rather they pay profit which they make by investing the deposits of the bank.
They collect deposit through different types of savings account. These can be broadly
divided into two types…
1. Al Wadeeah Current Deposit
2. Mudarabah Account

25
3.4 Main mechanism & modes of Union Bank Limited.
The special feature of the investment of the Islamic banking to invest based on profit-
loss shearing system in accordance with the tenets and principles of Islamic Shari’ah.
Earning of the profit is not the only motives and objective of the Islamic Banks
investment policy rather emphasis is given in attaining social good and in creating
employment opportunities. Union Bank Limited. Investment Mechanism mode is
divided in three parts and those are described below:
Features of
Investment modes
in Islamic
Banking
Markup Based
Bai Muajjal
Bai Salam
Bai Murabaha
Bai Istisna
Rental Based
Izara
Hire Purchase
Izara Bill baia
Hire Purchase
Mushraka
Mutanaqnsa
(HPMM)
Hire Purchase
Shirkatul Melk
(HPSM)
Sharing Based
Mudaraba
Musharaka

26
3.5 Feature of Investment modes
3.5.1 Bai Muajjal
In view of the Islamic Banking, it is treated as a contract between the bank and the
client under which the bank sells to the client certain specified goods purchased as per
order and specification of the client at an agreed price payable within a fixed future date
in lump sum or by fixed installments.
Features:
 Shariah permissible goods are too purchased from third party by the bank.
 The profit can be lump sum or in percentage of the cost/ purchase price. But
under no circumstances the percentage of the profit shall have any relation with
time or expressed in relation with time. Such as per month, per annum etc.
 An offer of customer to buy specified goods by the bank and commitment of
the said customer to buy the same goods i.e. confirmation of buying and selling
at a price cost plus agreed upon profit.
 Price verification by bank officials.
 Price once fixed cannot be changed.
 Profit markup to be made.
 Ownership of goods by the bank must be established for at least one moment
of time.
 Commission, transportation, TA/DA to be brome by the bank in case of
purchasing the same by the bank and to be loaded with cost price to setup
profit.
 Bank is not bound to declare cost and markup profit separately.
 Rebate will be applicable in case of early of prepayment.
 Compensation will be charged if repayment is made after the expiry.
 Bank may engage buying agent on his behalf to procure goods.
 Goods must be purchased as par specification of customer.
 Bank official must verify the condition of goods physically after purchasing
of goods by the buying agent.

27
3.5.2 Istishna:
 Istishna is on exponential mode of sale, at an agreed price, whereby the buyer
place on order to manufacture, a desirable or contract or cause so to do anything
to be delivered at a future date.
 The commodity must be known and specified including kind less, quality &
quantity.
 Price of the goods to be manufactured must be fixed in absolute and
unambiguous terms. The agreed price may be paid in lump sum or in
installments in the matter mutually agreed by the parties.
Features of Istishna:
 The Bank (buyer in Istishna) cans enter into a parallel Istishna contract without
any conditions or linkage with the original Istishnas contract. In one of them the
bank will be the buyer and in the second the seller. Each of the two contracts
shall be independent of the other. They contract field up in a manner that the
rights & obligation of one contract are dependent on the rights & obligations of
the parallel contract further parallel Istishnas is allowed with a 3rd party only.
 In Istishna transactions the buyer shall not before taking possession of the goods
sell or transfer ownership in the goods to any other person.
Quard (Benevolent Loan) investment modes:
 Quard is a mode of investment to provide financial assistance which is returned at
the end of the agreed period without any plot or share in the profit of loss of the
business. "Therefore, Quard is a kind of gracious financial assistance given to the
needy people for a final period without requiring the payment of profit. The receiver
of Quart is only required to repay the original amount of the finance.

28
3.5.3 Bai-Salam
Bai-Salam refers to a sale in which the buyer makes advance payment but the delivery
is delayed until sometime in the future. Usually seller is an individual or business and
the buyer is the bank.
Procedure of Bai-Salam
 Partial payment can be made on any deal and customer will be entitled of bonus
if the said deal is fully adjusted on or before maturity.
 Bonus will also be given to customer if the deal is adjusted in full prior the
maturity date.
 The profit will be suspended and kept in suspense account from the maturity
date.
Features:
 The Bank (buyer is salam) can enter in to a parallel salam contract without any
condition or linkage with the original salam contract. In one of them, the Bank
will be the buyer and in the second the seller. Each one of the two contracts shall
be independent of the other may cannot be lied up a manner that the rights &
obligations of the parallel contract. Further parallel salam is allowed with a third
party only.
 In order to ensure that the seller shall deliver the commodity on the agreed date
the Bank can ask him to furnish a security.
3.5.4 Bai Murabaha
 The term Bai-Murabaha has been derived from Arabic words 'Bai' & 'Ribhun',
the word Bai Means purchase and sale and the word Ribhun means agreed upon
profit. So, Bai-Murabaha means sale on agreed upon profit.
 'Bai-murabaha' may be defined as a contract between a buyer and a seller under
which the seller sells certain specific goods permissible under Islamic Shariah
and the law of the land to the buyer at a cost-plus agreed profit payable in cash
or on any fixed future date in lump sum or by installments. The profit marked-
up may be fixed in lump sum or in percentage of the cost price of the goods.

29
Procedure of Bai Murabaha
 Pay order to be issued in the name of supplier of goods.
 Proceeds of the investment deal may be credited to customer account if
customer is made as buying agent for procuring goods on behalf of bank.
 Calculation of the profit is to be made on sales price.
 Partial payment can be made on any deal and customer will be entailed of bonus
if the said deal is fully adjusted on or before maturity.
 Bonus will also be given to customer if the deal is adjusted in full prior the
maturity date.

3.5.5 Profit & Loss Sharing (PLS) Mode
Profit and loss sharing mode mainly related to Union Bank Limited investment
department. It is a major part of the bank. The marked-up profit may be fixed in lump
sum or in Percentage of the cost price of the goods. This mode is categorized into two
different systems and those are:
Mudrarbah: It is a form of partnership where ne party provides the funds while the
other provides the expertise and management. The first party is called Sahib-Al-Maal
and the letter is referred to as the Mudarib. Any profit accrued are shared between on a
pre-agreed basis, while capital loss id exclusively borne by the partner providing the
capital.
Feature of Mudarabah:
 Bank supplies capital as Sahib-Al-Mal and the client invest if the business
with his experience.
 Administration and Management is maintained by the client.
 Profit is divided as per management.
 Banks bears the actual loss alone.
 Client can take another investment for the specific business without the
permission of the bank.

30
Musharaka: An Islamic financial technique that adopts “equity Sharing” as means of
financing projects. Thus, it embraces different types of profit and loss sharing
partnership. The partners share both capital and management of the project so that
profits will be distributed among them as per rations, where loss is shared according to
rations of the equity participation.
 The investment client will normally run and manage the business.
 The bank shall take part in the policy and decision making as well as overseeing
the operations of the business of the client.
 As the investment client shall manage the enterprise, the bank may pay more
share of the profit to him than that of his proportionate capital contribution.
 Loss, if any, shall be shared on the basis of capital ratio.
3.5.6 Bai Mode (Buying and selling)
Bai mode mainly related to buying and selling. The terms “Bai” have been derived
from Arabic words and the word mean purchase and sale. Bai means sale foe which
payment is made at a future fixed date or within a fixed period. In short, it is a sale on
credit. This mode has three different criteria and those are discussed below:
A) Bai-Murabaha: The word Bai means purchase and sales and the word
Murabaha means an agreed upon profit. Bai-Murabaha may be defined as a
contract between which a seller sells a product to the buyer at a cost-plus agreed
profit payable in cash or on any fixed future date I lump-sum or by installments.
The seller may also sell goods purchased by him as per order and specification
of the buyer.
B) Bai-Muajjal: Bai-Muajjal may be defined as a contract between a buyer and
seller which under the seller sells a certain specific goods, to the buyer at an
agreed fixed price payable at certain fixed future date in lump-sum or within a
fixed period or fixed installments. The seller may also sell the goods purchased
but him as per order and specifications of the buyer.
C) Bai-salam: Under this mode Bank will execute purchase contract with the
client and make payment gains purchase of the product, which is under of
production. Bai-salam contract will be executed after making any investment
showing price, quality, quantity, time, place, and node of delivery. The profit is
to be negotiated. In this mode the payment as the price of the goods is made at
the time of agreement and the delivery of the goods is deferred.

31
D) Bai-istisna: Istisna’ means asking someone to construct, build or manufacture
an asset. In Islamic finance, istisna' is generally a long-term contract whereby a
party undertakes to manufacture, build or construct assets, with an obligation
from the manufacturer or producer to deliver them to the customer upon
completion. In practice, the key advantage of an istisna’ contract is that it can
provide flexibility to the customer, where payments can be made in installments
linked to project completion, at delivery or after project completion. In contrast
to istisna', for salam contract the payment has to be made in full, in advance.

32
3.5.7 Rent Sharing Mode
The term Rent Sharing Mode has been derived from the Arabic words Ajr and ujrat
which means consideration, return, wages or rent. This is really the exchange value or
consideration, return, wages, rent of the service of an asset. Rant sharing mode has two
categories and those are given below:
A) Hire Purchase/Ijarah: The term Ijarah derived from Arabic words Air and
Ujrat which means consideration, return, wages or rent. This is really exchange
value or consideration, return, wages, rent of service of an Asset. Ijarah has been
defined as a contract between two parties, the hiree and Hirer where the hirer
enjoys or reaps a specific service on benefit under specific consideration or rent
from the asset owned by the Hirer. It is a hire agreement under which a certain
asset is hired out by the hiree to the Hirer against fixed rent or rentals for specific
periods.
B) Hire Purchase under Sirkatul Meelk (HPSM): under this mode bank may
supply implements/equipment/ goods on rental basis. The owner of the
implements/ equipment/ goods will be with the bank and client jointly and the
portion of the client will remain to the bank as mortgage until the closure of the
investment account, but the client will be authorized to process the equipment
for certain period. The client, after completion of the installments, will be owned
of the implements/ equipment/ goods.

33
3.6 Different types of investment made by Union Bank Ltd.
The making of investment has always been a prominent and profitable function of
conventional banks. Conventional banks deal with the money from the depositors
repayable on demand. Advance in Union Bank Limited. are made in different form of
investment.
3.6.1 Investment:
When an advance is made in a lump-sum repayable either then in fixed monthly
installments or lumps and no subsequent debit is ordinary allowed expect by way of
interest, incidental charge etc., it’s called an investment. Investments are normally
allowed to those parties who have fixed sources of income or desire to pay it in lump
sum. Term investment:
Term investment is determined on basis of periods. These investments are provided in
different sectors economic.
1. Short term investment (1 year or below 1year)
2. Midterm investment (From 1 to 5 years)
3. Long term investment (Above 5 years)
Type of term investment:
A) Consumer Finance investment:
CFS is offered to the fixed income group to finance purchase of consumer’s durable
to raise their standard of living. Investment is given for purchase TV, refrigerator,
Air-conditioner, Washing machine, movie camera, Computer accessories, Furniture,
Kitchen items, Telephones, Vehicles. Investment is given to Government, Semi-
government & autonomous bodies, Banks insurance and finance institutions,
professionals like doctor, CA, lawyers, Teachers etc., officers of reputed private
organizations & MNC having corporate structure, firms and corporate bodies.
B) Hire Purchased Scheme:
The feature of hire purchase that usually the deposits has been paid and the rest of the
purchase are spread over a period of six month, 2 years or sometimes even longer, the
article being regarded as the property of the bank pavement has been made. Hire

34
purchase normally allowed to those persons who have either fixed source of income
or desire to pay it in Lump-sum.
Terms and Conditions:
1. The purchase item will be covered by the first party comprehensive insurance
plan throughout the period and premiere for the policy of each year will be
borne by the client.
2. Detail feasibility report containing marketing, financial, technical, socio-
economic aspect showing detailed break-up of the project cost and other usual
financial analysis duty supported by its assumption.
3.6.2 Overdraft:
The overdraft is a kind of advance always allowed on current account operated upon by
cheques. The customers are sanctioned a certain limit upon which, he can overdraw his
current account with a stipulated period. Here withdrawals or deposits can be made any
number of times at the convenience of the borrower, provided the total amount
overdrawn does not, at any time, exceed the agreed upon limit. Interest is calculated
and charged only on the actual debit balance on daily product basis. Thus, the borrower
in this case can save interest by reducing the debit balance.
Types of Overdraft:
O.D. Bai-Muajjal:
It may be extended to the borrowers against pledge of raw materials or finished goods
as security. It is given according to the rules margin restriction fixed by the Bangladesh
Bank and Union BANK LTD. The customer has to sign a duly stamped letter where the
party surrendered the possession of the good to the custody of the bank.
3.6.3 Other loans:
1. Secured overdraft (SOD) general: Advance allowed to individual/firms
against financial obligations i.e. lien insurance policy/shares etc. fall under this
head. This may or may not be a continuous credit.
2. Secured overdraft (SOD) FO: Bai-Murabaha (Contract sale) is given against
FDR, Shanchaypatra, Share, Debenture, MTDR MMPS, MMDS etc., are fixed
securities.

35
3. CC. (Pledge): Financial accommodation to the industries/firms for trading, as
well as wholesaler to the industries a working capital against pledge of goods
as a primary security all under this head of advance. This type of facility is more
freely granted by the banks than any other advance.
4. CC (Hypo): Advance is allowed against hypothecation of goods. It is called
cash credit. All are the same but in case of CC (Hypo) the ownership &
possession of goods remain with the borrower.
5. Bank Guarantee: Through a bank guarantee importers make payments to the
exporters. If the importer fails to make payment to the exporter then the bank
remains liable for the payment. In this case bank has to pay the exporter. For
this type of guarantee, client has to give interest quarterly.
6. Bid Bond: This type of guarantee is required in case of tender placing.
Generally, margin forbid bond is 10%
7. Performance Guarantee: When a party got the tender, then the party required
guarantee from the bank to run their normal trading.
8. Advance payment Guarantee (APG): When a party is paid a certain amount
to finish a tender work then the banks gives an APG that an assurance that the
bank will be liable in case of any miss-happening.
9. Shipping Guarantee: When the goods arrived before the papers then the bank
gives shipping guarantee. After arriving the papers, the guarantee is returned.
10. Custom Guarantee: It arises when code number of the goods is not matched
with the code number of the customs then it is needed. Here 100% margin or
collateral is needed

36
3.7 How to Investment is Operated in Union Bank Ltd.
The Union Bank Ltd deploys their funds as per different mode of investment financing
approved by Islamic Shari’ah. Most of the investment is on Bai-Mode. In this mode bank
sell specified goods to the clients on cost plus agreed upon profit or at a negotiable price
payable after a certain fixed periods. If the client fails to pay the price within the fixed
time the Islamic bank cannot impose additional amount as income of the bank. But
conventional banks can continue to charge interest even they can charge penal interest as
income of the bank. The other ideal modes of Union Bank Ltd are Musharaka &
Mudaraba. In Musharaka, Islamic banks share the profit/loss of the business with the
client. In Mudaraba mode Islamic bank shares the profit with the client. If any loss
accrues all the loss is born to the bank. On the other hand, the earning of the conventional
are prefixed and certain which continue till final payment. As business partners the asset
quality of Union Bank Ltd is different and better. So the classification & provisioning
rules should be separate for Union Bank Ltd. The special feature of the investment policy
of Islamic bank is to invest based on profit and loss sharing system in accordance with
the tenets and principles of Islamic Shari’ah. Earning of the profit is not only motives
and objective of Islamic investment policy rather emphasis is given in attainting social
goods and creating employment opportunities. In this view we can conclude that
investment models of Islamic banking system have distinguished features over the
conventional banking system. In conventional banking loan is garneted on the basis of
interest, which id fixed. On Islamic Banking system the investment is going on with the
profit-loss sharing system.

37
3.8 Investment Operation Structure
Application
Paper
Submission
Visit
Valuation
Checking
Papers
Making
Proposal
Proposal send
to Head Office
Discussing
Meeting at H/O
Failure Approve
Mortgage
Disbursement
Permission
Disbursement

38
Chapter: Four
Performance analysis of different modes of investment
of Union Bank Limited, D.T Road Eidgah Branch,
Chattogram

39
4.1 Different Mode-wise investment using Union Bank Limited D.T
Road Eidgah Branch
As a Union Bank Limited is a Shariah based bank and their aim is not only make a profit
through equity participation but also they establish a direct relationship between the
bank’s return and investment and allocate financing to those projects that will benefit
society the most. Union Bank Limited DT Road Eidgah Branch always try to provide
valuable service to their client. During my internship period, I had worked in both
General banking and Investment Department. According to three modes, they have been
offering their clients Bai-Modes (profit sharing also known as mark-up based) which is
running efficiently in this branch as well as they have been offering High Purchase
Shirkatul Melk (HPSM) which is under Rental (lease) based investment mode and
Musharaka is under partnership/sharing based investment modes.
The following analysis has been prepared by taking inputs from the branch data of Union
Bank Ltd 2016-2018.

40
4.2 Analyzing the year wise Bai-Murabaha SME Non-investment.
Table 1: Analyzing the year wise Bai-Murabaha SME Non-investment made by
UBL, D.T Road Eidgah Branch.
Year 2016 2017 2018 Mean Maximum Minimum
In million 20.72 22.79 25.90 23.13 25.90 20.72
Growth
(%)
-- 9.99 13.64 11.81 13.64 9.99
Source: Branch Data
Figure: Bai-Murabaha SME Non-investment of UBL D.T Road Eidgah, Branch.
Comment: According to graph & aforementioned table 1 shows that from 2016 to 2018
in Bai-Murabaha SME Non-investment of the bank were 20.70, 22.79 & 25.90 million
respectively and their average growth rate is 11.81%. In 2018 performance of this sector
was gradually increased than 2017.
20.72
22.79
25.9
0
5
10
15
20
25
30
2016 2017 2018
Bai-Murabaha SME Non-investment amount made by UBL,D.T Road Eidgah Branch

41
4.3 Analyzing the year wise Bai-Murabaha investment against
MTDR/MMPS/MMDS.
Table 2: Analyzing the year wise Bai-Murabaha investment against
MTDR/MMPS/MMDS made by UBL, D.T Road Eidgah Branch.
Source Branch Data
Figure: Bai-Murabaha investment against MTDR/MMPS/MMDS of UBL D.T Road Eidgah,
Branch.
in Bai-Murabaha investment against MTDR/MMPS/MMDS of the bank were 6.52, 7.29
& 8.47 million respectively. In 2018 performance of this sector was gradually increased
than 2017 and in this sector the growth rate is 9.32%
In million 6.52 7.29 8.47 7.42 8.47 6.52
Growth
(%)
-- 11.80 16.18 9.32 16.18 11.80
6.52
7.29
8.47
0
1
2
3
4
5
6
7
8
9
2016 2017 2018
Bai-Murabaha investment amount against MTDR/MMPS/MMDS made by UBL D.T Road Eidgah Branch

42
4.4 Analyzing the year wise Bai-Murabaha Women Entrepreneur
investment.
Table 3: Analyzing the year wise Bai-Murabaha Women Entrepreneur investment made
by UBL, D.T Road Eidgah Branch.
Source: Branch Data
Figure 3: Bai-Murabaha Women Entrepreneur investment of UBL D.T Road Eidgah, Branch
in Bai-Murabaha Women Entrepreneur investment of the bank were 0.078 & 0.11 million
respectively. In 2016, UBL D.T Road, Branch did not investment in this sector. In 2018
performance of this sector was gradually increased than 2017.
In million -- 0.078 0.11 0.09 0.11 0.078
Growth
(%)
-- -- 41.02 -- -- --
0
0.078
0.11
0
0.02
0.04
0.06
0.08
0.1
0.12
2016 2017 2018
Bai-Murabaha Women Entrepreneur investment amount made by UBL D.T Road,Branch

43
4.5 Analyzing the year wise Bai-Murabaha Agriculture investment.
Table 4: Analyzing the year wise Bai-Murabaha Agriculture investment made by UBL,
D.T Road Eidgah Branch.
Source Branch Data
Figure 4: Bai-Murabaha Agriculture investment of UBL D.T Road Eidgah, Branch
in Bai-Murabaha Agriculture investment of the bank were 6.301, 8.801 & 10.002 million
respectively. In 2017 performance of this growth rate was higher than 2016 & 2018
respectively and the growth rate was 39.67%
In million 6.301 8.801 10.002 8.368 10.002 6.301
Growth
(%)
-- 39.67 13.64 26.65 39.67 13.64
6.301
8.801
10.002
0
2
4
6
8
10
12
2016 2017 2018
Bai-Murabaha Agriculture investment amount made by UBL, D.T Road Eidgah Branch

44
4.6 Analyzing the year wise Bai-Murabaha SME investment.
Table 5: Analyzing the year wise Bai-Murabaha SME investment made by UBL, D.T Road
Branch.
Source: Branch Data
Figure 5: Bai-Murabaha Agriculture investment of UBL D.T Road, Branch
in Bai-Murabaha SME investment of the bank were 0.528, 0.645 & 0.777 million
respectively. In 2017 performance of this growth rate was higher than 2016 & 2018
respectively and the growth rate was 22.15% but in this sector their average investment
is 0.65 million.
In million 0.528 0.645 0.777 0.65 0.777 0.528
Growth
(%)
-- 22.15 20.46 21.30 22.15 20.34
0.5281
0.6454
0.7776
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2016 2017 2018
Bai-Murabah SME investment amount made by UBL D.T Road Eidgah Branch.

45
4.7 Analyzing the year wise Musharaka Documentary Bills investment
Table 6: Analyzing the year wise Musharaka Documentary Bills (MDB) investment made
by UBL, D.T Road Eidgah Branch.
Source: Branch Data
Figure 6: Musharaka Documentary Bills (MDB) investment of UBL D.T Road Eidgah Branch
in Musharaka Documentary Bills investment of the bank were 0.054, 0.073 & 0.08
million respectively. In 2017 performance of this growth rate was higher than 2016 &
2018. In this sector their average growth sector is 22.38%.
In million 0.054 0.073 0.08 0.069 0.08 0.054
Growth
(%)
-- 35.18 9.58 22.38 35.18 9.58
0.054
0.073
0.08
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
2016 2017 2018
Musharaka Documentary Bills (MDB) investment amount made by UBL D.T Road Eidgah Branch

46
4.8 Analyzing the year wise High Purchase under Shirkatul Melk
(HPSM) Transport investment.
Table 7: Analyzing the year wise High Purchase under Shirkatul Melk (HPSM) Transport
investment made by UBL, D.T Road Eidgah Branch.
Source: Branch Data
Figure 7: HPSM Transport investment of UBL D.T Road Eidgah, Branch
in HPSM Transport investment of the bank were 1.495, 1.786 & 1.941 million
respectively. In 2018 investment amount is higher than other years but in the year of 2017
performance of this sector growth rate was 19.46% which is still better than other years.
In million 1.495 1.786 1.941 1.740 1.941 1.495
Growth
(%)
-- 19.46 8.67 14.06 19.46 8.67
1.495
1.786
1.941
0
0.5
1
1.5
2
2.5
2016 2017 2018
HPSM Transport investment amount made by UBL D.T Road Eidgah Branch

47
4.9 Analyzing the year wise High Purchase under Shirkatul Melk
(HPSM) Consumer Durable Scheme investment.
Table 8: Analyzing the year wise High Purchase under Shirkatul Melk (HPSM) Consumer
Durable Scheme made by UBL, D.T Road Eidgah Branch.
Source: Branch Data
Figure 8: HPSM Consumer Durable Scheme investment of UBL D.T Road Eidgah, Branch
in HPSM Transport investment of the bank were 0.016, 0.020 & 0.017 million
respectively. In 2018 performance of the growth rate was gradually decreased than 2017
which was negative impact for this sector.
In million 0.016 0.020 0.017 0.017 0.020 0.016
Growth
(%)
-- 0.25 (0.15) 0.05 0.25 (0.15)
0.016
0.02
0.017
0
0.005
0.01
0.015
0.02
0.025
2016 2017 2018
HPSM Consumer Durable Scheme investment amount made by UBL D.T Road Eidgah Branch

48
Chapter: Five
Findings, Recommendations & Conclusion

49
5.1 Major Findings from the analysis
While I was working at Union Bank Limited, D.T Road, Eidgah Branch, I gathered
some practical experience. After the collecting and analyzing of data I have got some
findings. Those findings completely from my personal point of view. Those are :
1. Bank increase their performance gradually in Bai-Murabaha SME Non-
investment year to year which is indicates a good sign for the branch.
2. Bai-Murabaha investment against MTDR/MMPS/MMDS in this sector bank
raise their growth rate performance by increasing their investment mode.
3. In 2016, the bank did not invest in Bai-Murabaha Women Entrepreneur
investment. Bank started investing in this sector from 2017.Performance of this
mode raised in 2018 than 2017.
4. In 2018 the investment amount was more than 10 million which is higher than
any other years, and their performance growth rate gradually increased in Bai-
Murabaha Agricultural investment year to year which is more profitable sector
than different modes.
5. From 2016 to 2018 Bai-Murabaha SME investment of the branch was 0.528,
0.645 & 0.777 million respectively. In this sector bank gradually increase their
investment performance year to year but in 2017 growth rate was higher than
the year of 2018.
6. Musharaka Documentary Bills sector started in 2016 at which its performance
of investment was gradually increased with a little portion than the other modes.
However, in the year of 2017 the production of growth rate was 35.18% and
2018 the production of growth rate was decreasing gradually.
7. The branch started its investment in the transportation sector from 2016, but in
the year 2017, the performance growth rate was higher than in other years.
However, this branch raises their performance by increasing their investment
mode.
8. From 2016 to 2018 investment in Consumer Durable scheme of the office were
0.016, 0.020 & 0.017 million respectively. The best performance growth rate
had seen 2017 and 2018 the branch’s performance in this mode was worst.

50
5.2 Recommendations
Through Union Bank Limited overall performance well but it has some crucial areas to
improve which are prescribed below:
1. Bai-Murabaha SME Non-investment the bank was increasing over the years so
that the bank should try to keep it.
2. Bai-Murabaha against MTDR/MMPS/MMDS investment performance of growth
rate rising over the years, the bank should try to keep a steady growth rate in case
of this mode.
3. In this mode, the bank should work to increase investment its Bai-Murabaha
Women Entrepreneur so that it can achieve the target set by the corporate office.
4. D.T Road Eidgah Branch should try to maintain its Bai-Murabaha Agricultural
present performance and In future bank will invest more in this mode.
5. Investment department should find out the reasons for decreasing growth rate in
Bai-Murabaha SME investment and should take necessary steps to increase
growth rate performance.
6. The branch should give more concentration to increase its investment in
Musharaka Documentary Bills mode which performance growth rate was
decreasing gradually.
7. High Purchase Shirkatul Melk (HPSM) investment in transportation mode which
was increasing over the years and bank should try to increase growth rate
performance; otherwise, low profit will come from this mode.
8. Since the investment amount in Consumer Durables Scheme mode which is small
so the bank should try to more investment in this sector.

51
5.3 Conclusion
In this report, I have tried to show performance analysis of investment modes of Union
Bank Ltd, D.T Road Eidgah Branch. For progress in the future they can have glance in
this report and find good ways to achieve their goal in competitive environment. It was
difficult for me to find the drawbacks of any branch in 3 months but I have tried my best
to give something for my observation. I have tried to give a bird’s eye view of Union
Bank Limited throughout the report and gave some recommendation to improve their
current conditions. I took face to face interview with corporate clients and general
customers of Union Bank Limited to have good idea of the bank. The bank have to take
necessary steps to innovate and develop their banking system to be more comparative in
the market because if they do not they will lack behind from the market. So, finally I
want to say that this is the best experience of my life to work in an organization with a
good supervisor. I have learnt a lot of things from this involvement with this bank. This
practical experience will help me a lot in the future when I will be a fixed employee in
an organization.

52
References & Bibliography
Documents:
 Annual Report, 2013-2017 of Union Bank Limited.
 Branch Data & Information collected from Investment Department & General
Banking Department.
Websites:
 https://www.unionbank.com.bd/
 https://scholar.google.com/
 http://www.ierb-bd.org/
 https://en.wikipedia.org/wiki/Islamic_banking_and_finance
Bibliography:
 Textbook on Islamic Banking by M. Kabir Hossen.

Union Bank investment performance

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Union Bank investment performance

Ähnlich wie Union Bank investment performance (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Union Bank investment performance