New Report

Chapter -1
Introduction
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1.1 Introduction
Bank is a financial institution which deals with money. Not all banks are the same. There are
different types of banks: co-operative banks, savings banks, investment banks and central banks.
Because of its transitional role, banking system occupies a vital place in a countrys economy. It
confirms distribution and re-allocation of assets and keeps up the motion of economic activities.
As monetary intermediaries, banks stand between investors who invest capital and debtors who
demand capital. It assembles asset for both the public and private sectors, and provides inventive
answers to meet the requirements of entrepreneurs and government agencies. Thus the banking
segment plays a key role in the evolution of Bangladeshs economy. After the independence of
Bangladesh in 1971, six state owned commercialized banks were composed, two state owned
banks that specialized in lending to the agriculture and industry, three foreign banks including
standard chartered bank. The banking industry has faced momentous expansions from 1980s.
Private Banks has entered in banking industry, Micro finance banks grew rapidly, which has
provided assistance to meet the needs of poor citizens.
Foreign trading is a large business which is run by commercial banks. Foreign trade means the
exchange of capitals and services across the border. Expertise is provided by commercial banks.
Foreign trade requires a flow of goods from seller to buyer and payment from buyer to seller.
Here, bank plays as a conciliator between the buyer and seller.
The United Commercial Bank (UCB) was established in Bangladesh as a banking company. I
worked in the General Banking (account opening, clearing, transfer, deposit and cash), loan
department, and LC department of this bank. This gave me the opportunity to know more on
different aspects of the company. So, I have prepared my internship report on Unfolding
Customers Perception Regarding important Areas of Corporate Social Responsibility
Activities of Banking Industry: A Study on United Commercial Bank and Dutch Bangla
Bank Ltd.
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1.2 Background
Banking is one of the most important activities in order to ensure the flow of money in the
market. To understand the banking activities, I have selected The United Commercial Bank to
conduct research on its performance and evaluate with several years.
1.3 Origin of the Report
The internship program is an essential part of BBA and this report is prepared as a part of my
internship. Every student must take a three month attachment with an organization to take part in
different types of works. The organizational supervisor assigns the report and the faculty advisor
endorses the report. This assignment is given to collect practical knowledge and experience of
corporate life. I got the opportunity to complete my assignment in United Commercial Bank,
Darus Salam Road Branch, Dhaka. It was a three month long program. My supervisor asked me
to conduct my study on United Commercial Bank and also authorized to prepare a report on
it.
1.4 Scope of the Report
While preparing the report I had a great opportunity to have real life knowledge about the overall
banking procedure. I had to go to each and every department to collect the necessary data for my
report. I also talked with the employee and clients to know the bank properly. This report helps
me a lot about gaining practical knowledge about the financial sectors epically the bank.
1.5 Significance of the Study
This report is prepared to give a concrete idea about the performance and the condition of UCB
over last five years and comparing with other banks performance over the last two years. I
believe that my report will help a lot those who want to get an overall idea of UCB as well as its
financial statement. Bank management also can be using the information of my observation for
their managerial decision if needed.
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1.6 Objective of the Report
My long term Broad objective of this report is Unfolding Customers Perception Regarding
important Areas of Corporate Social Responsibility Activities of Banking Industry: A Study on
United Commercial Bank and Dutch Bangla Bank Ltd.
My specific objectives of the study are given below:
To Identify CSR activities of UCB.

To Identify and analyze important CSR sector according to client of UCB and DBBL.
To make recommendations for improving CSR performance of UCB.
1.7 Methodology of the study

Type of research
This study is based on descriptive research. The report has been developed based on both on
primary and secondary data.
Sources of data
Primary Data
Primary data are collected through questionnaire.
Secondary Data
Many secondary data are collected from the company website, articles and journals.
Research Instruments
Questionnaire
Five point Likert scale has been followed to develop questionnaire.
Sampling plan
Sampling Procedure
Non probability convenience sampling technique has been used for selecting sample.
Population
The populations in this study are all the customers of UCB (Darus Salam Road Branch)
and DBBL (Mirpur-1 Branch)
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Sample
Samples are all individual customers of UCB (Darus Salam Road Branch) and DBBL
(Mirpur-1 branch)
Sample Size
The total of 100 samples has been selected from the target population.
1.8 Limitations of the Study
There are some limitations that I have faced in preparing this report. Basically I faced difficulties
in collecting data from the different sources. Collect primary data some individuals did not show
interest while trying for interviewing them. For secondary data, I faced problem of unorganized
record of documents keeping by different sources. Preparing the report I also faced some
difficulties which are given below:
Time is the major constraint to gather data about all the information required here.
Not everyone was willing to share information regarding the project.
Interns were not allowed to have access in PCs.
It is difficult to arrange analytical data and theoretical data within a very short time of three
months which also did not help me to observe the greater scenario of this bank.
Load of works was also a great barrier for me to prepare the report in earlier time.
Lastly, I have to say that such limitations I cannot ignore though I tried my best to arrange data
within a very short period of three months.
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Chapter-2
An Overview of UCB
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2.1 Company Profile
Bank plays a crucial role in the development process of a country as it helps to accelerate the
pace of development by securing continuous supply of financial resources to people engaged in
numerous economic activities. These financial institutions contribute the tremendous growth that
the world economy has experienced. As bank is one of the most important financial
intermediaries; so I have selected United Commercial Bank, Darus Salam Road Branch, which is
one of the leading banks in the banking sector of Bangladesh. The Bank aspires to be an
International Standard Financial Institution benchmarking itself against international standards
even though it is a local bank with best practices in terms of product offerings, technology,
service levels, risk management, audit and required compliance. This branch performs the
banking activities including General Banking, little bit of Foreign Exchange (LC) activities,
customer service and Credit& Loan department. As a result, one can easily gain knowledge of
both simple and complicated banking operations from the activities of this branch. This report is
the output of my practical experience that I gathered during my 3 months of internship program.
This report is prepared as part of practical orientation of B.B.A program.
With a firm commitment of the economic and social development of Bangladesh, United
Commercial Bank (UCB) started its journey in mid1983 and has since been able to establish
itself as one of the largest first generation banks in the country. With a vast network of 158
branches the Bank has already made a distinct mark in the realm of Private Sector Banking
through personalized service, innovative practices, dynamic approach and efficient Management.
The Bank has expanded its arena in different and diverse segments of banking like Retail
Banking, SME Banking, Corporate Banking, Off-shore Banking, and Remittance etc. Besides
various deposit and loan products of Retail Banking, the Bank caters export and import loan to
deserving candidates which in turn helps the overall economy of the country through increased
earning of foreign exchange. Other consumer products like UCB Cards have been showing
tremendous success and growth since its inception in 2006 and soon became the leader in local
market with around 40000 card holders. The Bank also provides its clients with both incoming
and outgoing remittance services. Thus the expatriates find an easy way to send money through
proper channel. With a firm commitment to promote SME sector, the Bank is also assessing and
monitoring business loans, managing business financing risks, pricing products and working for
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further development of SME. Its Corporate banking service consists of simple business of
issuing loans to more complex matters, such as helping minimize taxes paid by overseas
subsidiaries, managing changes in foreign exchange rates or working out the details of financing
packages necessary for the construction of a new office, plant or other facility. Its area of
expertise is in-depth knowledge in financial analysis with analytical capability of financing large
project including RMG and infrastructure development projects. UCB has been launched by a
group of successful entrepreneurs with recognized standing in the society. The management of
the Bank consists of a team led by senior bankers with decades of experience in national and
international markets. The senior management team is ably supported by a group of professionals
many of whom have exposure in the international market. The Bank, aiming to play a leading
role in the economic activities of the country, is firmly engaged in the development of trade,
commerce and industry by investing in network expansion and new technology adoption to have
competitive advantage.
Registered Name United Commercial Bank Limited
Legal Status Public Limited Company
Date of incorporation 26 Jun 1983
Date of Commencement of Business 27 Jun 1983
Total Manpower 14,152
Number of Branches 168
Number of AD Branches 27
Number of Agri. Branches 02
Number of ATM Booths 164
Head Office Plot-CWS(A)-1, Road-34, Gulshan Avenue
Dhaka-1212, Bangladesh
Telephone 0088 09611 999999/008802 55668070
E-mail info@ucb.com.bd
Website www.ucb.com.bd
SWIFT UCBL BDDH
Trading Symbol UCB
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2.2 History of UCB
For A Better Tomorrow Is the mission of UCB Limited through a contemplation of assuring a
professional term of Bankers is running the day-to-day operation of the Bank.
The journey of UCB for excellence in Banking as a schedule commercial Bank began in as a
public limited company incorporated in Bangladesh on 26th June 1983 under the companies Act
1994 and listed in Dhaka Stock Exchange Limited on 30th November 1986 and Chittagong
Stock Exchange Limited on 15th November 1995. It was the time when a rapid economic
development in the country concurrent with urbanization and life style change created demands
for new banking products and services.
UCB is one of the most successful banks among the second- generation private banks. The bank
has successfully entered its 33rd year of operations. With professional and dedicated team of
management having long experience, commendable knowledge and expertise in conventional
and modern banking, the bank has achieved success among its peer group within a short span of
time. Since its humble beginning in 1983, it set milestones in the banking history of Bangladesh.
With all the available recourses, the management of the bank family believes that the bank would
be able to encounter problems that may arise both at micro and macroeconomic levels.
Within a short span of time UCB has established itself as one of the fastest growing local private
banks. It has at present a vast network of 158 branches serving many of the leading corporate
houses and is gradually moving towards retail banking. Its other significant delivery channel is
the shared ATM Network. UCB has 135 ATMs as a member of ETN (E cash) along with
eleven other banks. The banks shares commands respectable premium. UCB has been actively
participating in the local money market as well as foreign currency market without exposing the
Bank to vulnerable positions. The Banks investment in Treasury Bills and other securities went
up noticeably opening up opportunities for enhancing income in the context of a regime of
gradual interest rate decline. It is the pioneer amongst the local banks in introducing innovative
products like SMS banking, and under the ATM Network the Stellar Online Banking software
enables direct linking of a clients account, without the requirement for a separate account.
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2.2.1 Vision
UCB's vision is to be the bank of first choice through maximizing value for our clients,
shareholders and employees and contributing to the national economy with social commitments.
2.2.2 Mission
To offer financial solutions that create, manage and increase our clients wealth while improving
the quality of life in the communities we serve.
2.2.3 Core Values

We put our customers first.
We emphasize on professional ethics.

We maintain quality at all levels.
We say what we believe in.
2.3 The Board of Directors
Name Designation
M.A. Sabur Chairman
Anisuzzaman Chowdhury Vice Chairman
Showkat Aziz Russell Chairman- Executive Committee
Akhter Matin Chaudhury Chairman- Audit Committee
Md Jahangir Alam Khan Chairman- Risk Management Committee
M.A. Hashem Director
Hajee Yunus Ahmed Director
Hajee M.A Kalam Director
Sultane Rezia Begum Director
Nurul Islam Chowdhury Director
Bazal Ahmed Director
Sharif Zahir Director
Shabbir Ahmed Director
Md. Tanvir Khan Director
Ahmed Arif Billah Director
Asifuzzaman Chowdhury Director
Rukhmila Zaman Director
Syed Mohammed Nuruddin Independent Director
Dr.Salim Mahmud Independent Director
Muhammad Ali Managing Director
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2.4 Functions and Services of UCB
Functions of a UCB
Procurement of Deposit
Lending its Resources
Remittance
Collection of Bills
Clearing of Cheques / FIs
Safe Deposit Locker
Cash Management
Collection of VAT & Taxes
Collection of VAT & Taxes
Protecting Anti-Money Laundering
Providing Data, Information and Report for MIS to Corporate Office/ Regulators
Housekeeping
2.5 Green Banking

The Green Banking Policy of United Commercial Bank has already been formulated by the
Green banking Cell and the Board of Directors approved it. In line with the Policy, adequate
funds will be allocated in the next budget of the Bank for related activities.
As per the guideline of Bangladesh Bank, a separate policy has been formulated as
Environmental Risk Management (ERM) Policy, aligned with Credit Risk Management Policy.
The Board of Directors also approved the ERM Policy. Besides, Formulation of a draft Green
Office Guide for the purpose of development of In house Environment Management is at the
final stage.
In the meantime, the following activities and programs have been undertaken in compliance
with Green Banking Guidelines of Bangladesh Bank:
1. Variable Refrigerant Flow (VRF) system Air Cooler, lessening around 25% electricity
consumption, has been installed at Banks Corporate Head Office.
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2. Since the inception of 2011, the Bank has started installing energy efficient bulbs in the newly
established Branches.
3. As an initial initiative of establishing environment friendly Branches, the Bank has introduced
solar energy system at Noapara Branch, Chittagong and other Branches will be equipped with
the same system phase by phase.
4. Different divisions of the Bank are disseminating operational guidelines, circulars and
Management decisions as well as collecting statements through email reducing use of paper.
5. The Data Center built inside the Corporate Head Office at Gulshan uses In-Row Precision
Air-Cooling System which ensures minimum power consumption to maintain necessary
temperature for the Data Centre Equipment.
6. Number of Application and Database Servers has been consolidated in high capacity Servers
which has reduced power consumption.
7. Managed Rack based Structured Network has been implemented at Data Center. As such
required space and dissipated heat is much less compared to traditional Data Centre.
8. Central UPS (Uninterrupted Power Supply) installed at each floor which reduces total backup
power requirement.
9. Separate Network Switch room at each floor reduces unnecessary cable lying in the Data
Center.
10. CRT (Cathode Ray Tube) Monitor has been replaced by LCD (Liquid Cristal Display)
Monitor in all work stations in Head Office which reduces dissipated heat and power
requirement for the computer system.
11. UCB is the pioneer in introduction of Bangladesh Electronic Fund Transfer Network
(BEFTN) transaction system which reduces dependency on paper-based transaction.
12. Sixty numbers of ATM Booths have been installed which reduce operation time and
consumption of cheque book.
13. Banks all printers are with double sided printing facility and enabled with Eco-font.
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14. HR Management software has been installed for generation of salary advice which is
reducing manual paperwork.
15. In-house CIB software has been installed which is allowing Branches to input data as and
when required hence complimenting paperless work flow.
16. In-house MIS software installed for capturing operational data, centralized processing and
KPI which has reduced use of paper and saving time and work hour.
17. The Bank has been giving emphasis on financing eco-friendly business activities and energy
efficient industries like Effluent Treatment Plant. The Bank has recently financed Term Loan of
Tk.16.85 Core to establish two brick fields using Hybrid Hoffman Kiln (HHK) technology.
2.6 Online Banking Service
UCB is already providing online banking services to its valued clients through 158 branches. Our
valued clients are also using SMS Banking services offered by the Bank.
UCB is on the verge of selecting a robust Core Banking Software (CBS) covering all banking
operations including delivery channels as well as Offshore Banking and Islamic Banking. With
the implementation of CBS, UCB will be equipped to offer more paperless and eco-friendly
banking services.
To automate work flow, increase operational efficiency and to reduce carbon emission, UCB has
also taken the following measures and projects which are underway for implementation of
corporate objectives on green banking:
Implementation of Enterprise Resource Planning (ERP) software for Office Automation
Implementation of Corporate Intranet Portal
Implementation of a new Green Disaster Recovery Site (DRS)
UCBL exerts utmost effort to implement Green Banking and always eager to embrace latest
technology any methods to ensure eco-friendly banking operation.
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2.7 Strategic Business Unit: Products and Services
Retail Banking:
Retail business deals with the-
Individual customer
Liability management under individual name
Asset business (governed by prudential guideline of Bangladesh Bank)
Service base fees income
Deposit Products
UCB Savings Plus
UCB youngster savings
UCB DPS Plus
UCB Monthly Earning Plus
UCB Quarterly earning Plus
UCB Multi-Millionaire
UCB Money Maximize
Earning first FD
Youngster DPS
Lending Products
Home mortgage loan
Auto Loan
Education Loan
Doctors Loan
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Travel Loan
Marriage Loan
Advance Against Salary
House-hold durable loan
Hospitalization loan
2.8 Future Plan and Challenges
Multi product offering
One stop financial shop
Differentiated product offering
Product bundling
Distribution
Expand distribution with the help of modern technologies
Hand the benefit of the already established network shake with networks to get
Utilizing every channel to integrate the experience of the bank
Mining and analyze customer data
Cost optimization through CRM base segmentation and offering
Operational efficiency
Centralized CRM
Integrated documentation and risk mitigation
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2.9 Operations of Offshore Banking Units
Account opening:
The OBU customer has to maintain an account in approved FC (preferable USD).
The OBU customer cannot open local currency in OBU.
The OBU customer cannot open local currency account in On-shore branch means an AD
branch.
The said local currency act may open only for meeting up the local expenditure including
salary.
The source of local currency in onshore unit of respective OBU customer derives from the
export proceeds or available fund from OBU.
Remittance
Outward or inward remittance can make freely
Remittance against Export freely
Remittance against Import freely
Trade service
Import
Issuance of LC & amendment
Scrutiny, lodgment & retirement of import documents
Issuance of shipping guarantee
Settlement of DA/DP
Post Import financing (TR, BLC etc.) Import against advance payment
Import bill discounting
Export
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LC advising & amendment
Bill collection
Bill negotiation
Bill purchasing/ bill discounting
Export against advance payment
Treasury
Placement of fund in FC with other bank vice versa
Borrowing & placement (local &overseas) in FC
Fund management
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Chapter-3
Literature Overview
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3. 1 Theoretical Background
For better understanding of the CSR phenomenon, it is necessary to accept a statement by
Dahlsrud (2008) who states that, the business as a producer of economic wealth does not only
have economic impacts. CSR has always been perceived as a questionable concept principally
because it has no specific limits and therefore, there is no uniform definition. Kotler and Lee
(2005) mention a definition of international organization Business for Social Responsibility
which defines CSR as managing of business in such a way that surpasses ethical, legal,
commercial and social expectations. The key participants in this social-economic process are
shareholders and stakeholders. Companies tend to meet the needs and interests of stakeholders
and as a result, it leads to creation of reputation, contribution to sustainable development and
increasing profit. In the context of CSR, the main principle of the business is to find a balance
between the needs and interests of stakeholders and shareholders whose interests are focused on
profit making. Friedman (1970) in his famous criticism of CSR states that the only social
responsibility of companies is to utilize resources and to participate in activities that lead to
increased profit. In his opinion, investing in social responsible behavior is inconsistent with the
elementary objective of the business which is to make profit that eventually positively affects all
stakeholders (Soana, 2011). The is criticism has been repeatedly refuted and CSR is generally
perceived as a strategy which is economically beneficial in the long-term.
3.2 CSR in banks and linkage to financial performance

Banks are key players in financial markets and play an important role in keeping any economy
running smoothly (Khan and Fasih, 2014). Chaterjee and Lefcovitch (2009) admit that
commercial banks are strongly focused on profit and financial aspects of the business therefore,
implementing CSR may be accompanied by difficulty. The authors further emphasize that ethical
standards in financial industry are important particularly because banks, operating with money of
other people, take the risk which may not only result to profit but also cause a loss. As a result,
corporate social performance has gained equal importance as corporate financial performance.
Journal of International Studies Vol. 8, No.3, 2015 114 Based on previous studies of Bels et al.
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(2014; 2015) and Chochokov et al. (2015), there are several elements in each part of CSR,
namely economic, social and environmental, that may be observed and evaluated in commercial
banks. Economical aspect of CSR is mainly focused on economic performance. However, it also
refers to banks involvement in community development or providing socially responsible
products. Social part of CSR involves observation of elements such as code of ethics and its
compliance, protection of human rights and involvement in philanthropic activities.
Environmental policy and the level of financing socially responsible projects reflect
environmental part of CSR concept in the banking industry. Young (2011) argues that the
balance of managing financial and non-f nancial results with awareness of risk and maintenance
of transparency represents significant aspect of management activities in the bank. According to
Birindelliet al. (2013), CSR in banks takes place in the form of credit granting and asset
management. It is further stated that the operation of payments and risk management
significantly affect both the society and the environment. In addition, CSR improves relations
with stakeholders and this results to both performance and reputation. According to Soana (2011)
CSR safeguards banks reputation by lowering unpredictability in the event of harmful effects,
such as withdrawal of a product thus protecting profits and financial results. In this context
Scholtens (2009) states the significant and positive relation though between the banks CSR
performance and their financial quality (BIS Tier 1 ratio) and CSR performance is positively and
significantly related with bank size. Similarly, Ahmed, Islam and Hasan (2012) examined the
nature of relationship between CSR and Corporate Social Performance and found that banks that
are observing CSR activities are performing better (in area of Return on Assets and Earnings per
share) than the non-CSR banks in Bangladesh. On the other hand, Soana (2011) states that there
is no significant dependence between social and financial performance. In other words, there is
no negative dependence between the two indicators. Furthermore, banks direct their investment
and costs ethically without any detriment of economic performance. In addition, banks
investments to CSR do not bring any economic benefits. According to Chih, Chih, and Chen
(2010), there is an insignificant relationship between financial performance of the bank and CSR.
On the basis of their research, which was conducted on the financial market, authors present
following results: 1. Larger companies are more oriented on CSR and in the same time, the
financial performance and CSR is not related with each other. 2. In an environment of intense
competition on the market, companies should make more socially responsible businesses to gain
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a competitive advantage. 3. Financial companies in countries with stronger legislative regulative
tend to have more CSR activities, but paradoxically, companies from countries with stronger
application of shareholder rights tend to have less CSR activities. 4. Higher level of self-
regulation of the financial sector has a significant positive effect on the CSR: companies behave
more socially responsible in countries where relationships between employee and employer are
characterized by cooperation, and where there are quality management schools and better
macroeconomic environment. Wu and Shen (2013) investigated the association between CSR
and financial performance, and discussed three driving motives (strategic choices, altruism and
green washing) of banks to engage in CSR. Their empirical results from 162 banks in 22
countries showed that CSR is positively associated with financial performance in terms of return
on assets, return on equity, net interest income, and non-interest income. In contrast, CSR is
negatively associated with non-performing loans. Strategic choice is the primary motive of banks
to engage in CSR. Ji Paulk, Felix Kombo, Aleksandr Kljunikov CSR as a driver of
satisfaction and loyalty in commercial banks in the Czech Republic 115 The CSR concept
participates in better fi nancial performance directly by reducing costs and increasing
productivity and contributing indirectly to increasing customer satisfaction (Loureiro et al.,
2012). The is makes customer satisfaction the overall importance of CSR. As already stated in
the introduction, the role of CSR in commercial banking is derived from achieving an adequate
financial performance by considering social and environmental objectives. In this sense, a crucial
social objective is to achieve high satisfaction level of bank customers and employees, who are
considered as the most important stakeholders of commercial banks.
3.3 Customer satisfaction and loyalty in banking

Grigoroudis et al. (2012) define customer satisfaction as a concept that deals with the
confirmation of customer expectations, taking into account the positive or negative evaluation of
the product or service. The author also states that commercial banks have been forced to operate
with emphasis on customer services due to strong competition and long-term achievement since
it is linked to banks ability to adapt to changes of customers preferences and needs.
Furthermore, customer satisfaction is the primary criterion for the assessment of banks
relationships with the market (Munari et al., 2012). Customer satisfaction and maintaining of
relationship with customers are two parameters which lead to increased profits for banks (Gupta
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and Dev, 2012). Terpstra and Verbeeten (2014) agree that customer satisfaction is mostly
perceived as a value driver in the banking industry, thus it is positively associated with future
customer revenue. Nevertheless, authors argue that customer satisfaction is also a cost driver
since it requires future customer servicing as additional costs. The therefore, banks should focus
on the profit ability of customer satisfaction. Satisfied customers purchase more while dissatisfy
ed customers reduce their portfolios (Terpstra and Verbeeten, 2014) and moreover, satisfied
customers tend to spread a positive word-of-mouth regarding services offered to them (De Matos
et al., 2014). CSR initiatives are important in building service loyalty and in addition, customer
perception of CSR behavior has direct consequences in the valuation of the services of the
company (Mandhachitara and Poolthong, 2011). There is a direct and positive association
between CSR activities and attitudinal loyalty. Customer loyalty and satisfaction are dependent
on each other, thus if a customer is satisfied, his loyalty increases (Hafeez and Muhammad,
2012).
3.4 Drivers of customer satisfaction in banking

Habibi et al. (2013) present several factors influencing satisfaction. These factors include:
friendly behavior, speed in delivery of services, accuracy in providing services, interest of
deposits, secrecy, skills of personnel, easy access to services, guiding and presenting the
necessary information and willingness to help. Service quality is the most important in achieving
customer satisfaction. Khan and Fasih (2014) confirm that all dimensions of service quality have
signifi cant and positive association with customer satisfaction and customer loyalty. Banks are
forced to compete in todays turbulent environment and special attention to service quality
allows customer retention and attraction of new customers which results to achieving
competitive advantage (Khan and Fasih, 2014). In addition, service quality improves financial
performance through increased profitability (Habibi et al., 2013). Further drivers of customer
satisfaction have been presented, which include level of prices, branch availability and the
quality of e-banking. Wruuck (2013) states that price satisfaction plays a significant role in
achieving customer satisfaction. Prices of bank services and products together with level of
banking fees widely influence customer perception towards the bank. Furthermore, these factors
have become the Journal of International Studies Vol. 8, No.3, 2015 116 main reasons why
customers change their banks. Recently, as a part of the ascending trend of so called low cost
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banks, e-banking has achieved a significant importance in commercial banking.
Muthukrishnanetal. (2013) confirm that e-banking service has become the most advanced
technique used all over the world and the benefits include cost minimization, quick service and
easy way in banking transaction, which has indicated that e-banking is among the most rated
services of the bank.
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Chapter-4
Areas of CSR Activities
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4.1Corporate Social Responsibility
United Commercial Bank is the largest private commercial bank of the country has set up the
effective implementation of Corporate Social Responsibility as one of the core priorities for
business to have positive impact in society. CSR has always been treated as integral part of our
organization with involvement in continuous contribution towards economic and social
development which in the long run leads to building a prosperous nation. Our commitment
illustrates the progress of corporate social responsibility at our organization and can be seen in
the way we run our organization, the inclusive and supportive workplace we create for our
employees, the responsible products and services we offer our customers and the impact we
make around in helping local economies thrive.
In the spirit of living and working together for the common good, we at United Commercial
Bank Limited taken an approach to business that is both socially responsible and economically
feasible. In all we do, we are guided by a common purpose to make financial lives better by
connecting our customers, clients, and communities with the resources they need to be
successful. Our approach to corporate social responsibility focuses to create economic,
environmental and social value.
UCB abides with all laws and regulations of the country in which it operates, in addition to
acting in accordance with social norms and moral values. We support education projects that
empower the next generation to achieve their full potential and help to remove social and
economic barriers that hold them back. We assist enterprises that help drive positive change in
society to get off the ground and reach to the next level.
In UCB, we have organized our activities in some major areas which we consider as prime
interventions with the spirit of Corporate Social Responsibility. In the year 2016, our total
expenditure in CSR arena was BDT104.38 million. . The Bank has organized its CSR activities
around five main areas:
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Education
Health
Disaster Management
Socio-Economic Development
Sports
4.1.1Contribution to Educational Sector

United Commercial Bank has always been directly or indirectly involved in projects for
improvement in educational sector of Bangladesh. UCB has long been practicing CSR through
scholarship for poor and brilliant students, education promotion scheme, education for under-
privileged children, donation to educational institutions etc.
UCB assisted Sultana Memorial Girls High School, feni to rebuild its infrastructure which was
burnt by miscreants during election. On the other hand, 5 computers had been donated to Munira
Mozaher Honse Aziz Foundation. They are a charity computer training institute providing
computer training to poor students.
Shah Waliullah Institute is a famous educational institution of Chittagong where a huge number
of students are enrolled for gaining knowledge. Their school building was not large enough to
accommodate this huge number of students. In such a situation, UCB assisted for the
infrastructural development of Shah Waliullah institute. Also financial assistance was provided
against Anwarul Azim Girls High School, Chittagong.
Proyash is a specialized school for the children with disabilities. Bangladesh Army operates this
school.UCB supported this noble cause and came with a handful support to Proyash Rangpur
school.
Besides these, UCB also provided financial assistance to different educational institutions like
Chittagong University, Narayangonj Govt.Mohila College, Jamalur Rahman Khan Science
Technology School and College, Chittagong and many more as part of their responsibility to the
society.
26
4.1.2Contribution to Health Sector
Over the years, UCB has been contributing in health sector in Bangladesh which includes
donation to different health-care institutions, financial assistance to under privileged and poor
people, raising awareness about epidemics etc. Year 2016 was no exception. Round the year
UCB contributed to different projects for improvement of health sector in Bangladesh. Some of
these are improvement in medical education, survival and healthy development, disability
reduction and the adoption and maintenance of healthy lifestyles etc.
A five months baby girl is suffering from a critical disease named Biliary Artesia and she was in
need of Liver Transplant. United Commercial Bank Limited assisted for her treatment.
Assistance was provided for treatment of Minar Uddin, a meritorious student of University of
Dhaka who is a depressing victim of electric shock and severely burnt.
The Patharghata Health Development Society is a charitable organization working for the free
treatment of poor and needy regardless of caste, creed or religion. UCB provided financial
assistance for their noble cause.
Lucky Akhand, a very prominent musician of the country is depressing victim of cancer. A
welfare foundation named Shilpir Pashe Foundation was formed to contribute for his treatment.
UCB came to know such pathetic situation of Lucky Akhand and subsequently provided
financial assistance. Moreover, donation was made for Chittagong Samity Dhaka Hospital Fund.
4.1.3Contribution to Disaster Management Sector

As a socially responsible corporate body, UCB always comes forward in response to disaster
management whether a natural calamity or tragic accident. In year 2016, UCB provided donation
of taka 2, 25, 00,000.00 to Prime Ministers Relief Fund. Moreover, UCB distributed a total of 2,
00,000 pcs of blankets among the deprived and unfortunate people to provide them warmth
during the horrible winter months. Blankets were distributed in those areas where people were
more prone to the wrath of cold winter.
27
4.1.4Contribution to Socio-Economic Development Sector
Assistance was provided to Law and Order Coordination Committee of Gulshan Police Station,
DMP, Dhaka on their CCTV surveillance project. Donation was also made for set up CC camera
on various places of Brahmanbaria and Moulvibazar to secure law and order.
UCB made donation on Satkania Lohagara Samity, Dhaka for distributing 20 Sewing machines
to distressed women. It was initiated as a measure to create self-employment activities for
marginalized people.
UCB also donated to Panchbibi Thana Authority, Joypurhat. It was for rehabilitation of drug
dealers who are willing to get back to the normal life.
UCB distributed Sharee and Lungi to poorest segment of society. 15000 pcs of Lungi and 60000
pcs of Sharee were distributed to poor and distressed people.
4.1.5Contribution to Sports Sector

UCB always highlights on youth development and sports. We provided donation to
Jahangirnagar University for participating in Inter University Athletics competition.
In the coming years, we plan to expand our CSR activities in more areas. We will undertake lots
of new CSR projects in different areas keeping education, environment and health at the core.
28
Chapter-5
Analysis
29
UCB
1 You have positive attitude towards the bank that contribute in Disasters %
management sector.
Strongly Agree 38%
Agree 40%
Neutral 10%
Disagree 4%
Strongly Disagree 8%
45%
40%
40% 38%
35%
30%
25%
20%
15%
10%
10% 8%
4%
5%
0%
Strongly Agree Agree Neutral Disagree Strongly Disagree
From the above diagram we can see that, 38% respondents strongly agree, 40% agree, 10%
neutral position, 4% disagree and 8% strongly disagree with the statement.
30
2 You think bank should contribute in socio-economic development sector. %
Strongly Agree 18%
Agree 64%
Neutral 18%
Disagree 0%
70% 64%
60%
50%
40%
30%
18% 18%
20%
10%
0% 0%
0%
strongly Agree Agree Neutral Disagree Strongly
Disagree
From the above diagram we can see that, 18% respondents strongly agree, 64% agree and 18% at
neutral position.
31
3 To you sponsorship in sports event by a bank is important. %
Strongly Agree 26%
Agree 74%
Neutral 0%
Disagree 0%
80% 74%
70%
60%
50%
40%
30% 26%
20%
10%
0% 0% 0%
0%
Strongly Agree agree Neutral Disagree Strongly
Disagree
From the above diagram we can see that, 26% respondents strongly agree and 74% agree with
the statement.
32
4 You feel positive towards the bank that donates in educational sector. %
Strongly Agree 20%
Agree 60%
Neutral 18%
Disagree 2%
70%
60%
60%
50%
40%
30%
20% 18%
20%
10%
2% 0%
0%
Strongly Agree Agree Neutral Disagree Strongly
Disagree
From the above diagram we can see that, 20% respondents strongly agree, 60% agree, 18% at
neutral position and 2% disagree with the statement.
33
5 You think that bank should provide financial assistance to health %
institutions.
Strongly Agree 0%
Agree 62%
Neutral 26%
Disagree 12%
70%
62%
60%
50%
40%
30% 26%
20%
12%
10%
0% 0%
0%
Disagree
From the above diagram we can see that, 62% respondents agree, 26% at neutral position and
12% disagree with the statement.
34
6 You think bank Should donate to Support Special Child. %
Strongly Agree 0%
Agree 64%
Neutral 22%
Disagree 10%
70% 64%
60%
50%
40%
30%
22%
20%
10%
10% 4%
0%
0%
Disagree
From the above diagram we can see that, 64% respondents agree, 22% at neutral position, 10%
disagree and 4% strongly disagree with the statement.
35
7 You think that bank should think about Street Child & Street beggar. %
Strongly Agree 0%
Agree 54%
Neutral 12%
Disagree 14%
60%
54%
50%
40%
30%
20%
20%
14%
12%
10%
0%
0%
Disagree
From the above diagram we can see that, 54% respondents agree, 12% at neutral position, 14%
disagree and 20% strongly disagree with the statement.
36
8 You think that bank should consider Green Banking to support the %
Environment.
Strongly Agree 52%
Agree 48%
Neutral 0%
Disagree 0%
60%
52%
50% 48%
40%
30%
20%
10%
0% 0% 0%
0%
Disagree
the statement.
37
9 You think bank should work on Human Rights. %
Strongly Agree 6%
Agree 66%
Neutral 24%
Disagree 4%
70% 66%
60%
50%
40%
30% 24%
20%
10% 6% 4%
0%
0%
Disagree
38
10 You think bank should contribute to improve woman empowerment to %
remove the poverty.
Strongly Agree 24%
Agree 76%
Neutral 0%
Disagree 0%
80% 76%
70%
60%
50%
40%
30%
24%
20%
10%
0% 0% 0%
0%
the statement.
39
11 You have positive outlook towards the bank that contribute to remove the %
poverty in Rural Sector.
Strongly Agree 22%
Agree 56%
Neutral 16%
Disagree 4%
60% 56%
50%
40%
30%
22%
20% 16%
10%
4%
2%
0%
Disagree
40
DBBL
1 You have positive attitude towards the bank that contribute in Disasters %
management sector.
Strongly Agree 27%
Agree 35%
Neutral 10%
Disagree 20%
40%
35%
35%
30% 27%
25%
20%
20%
15%
10%
10% 8%
5%
0%
Disagree
41
2 You think bank should contribute in socio-economic development sector. %
Strongly Agree 12%
Agree 50%
Neutral 14%
Disagree 14%
60%
50%
50%
40%
30%
20%
14% 14%
12%
10%
10%
0%
Strongly Agree Agree Neutral Disagree strongly
Disagree
42
3 To you sponsorship in sports event by a bank is important. %
Strongly Agree 38%
Agree 52%
Neutral 2%
Disagree 4%
60%
52%
50%
40% 38%
30%
20%
10%
4% 4%
2%
0%
Disagree
43
4 You feel positive towards the bank that donates in educational sector. %
Strongly Agree 26%
Agree 52%
Neutral 10%
Disagree 8%
60%
52%
50%
40%
30% 26%
20%
10%
10% 8%
4%
0%
Disagree
44
5 You think that bank should provide financial assistance to health %
institutions.
Strongly Agree 13%
Agree 67%
Neutral 6%
Disagree 8%
80%
70% 67%
60%
50%
40%
30%
20% 13%
6% 8% 6%
10%
0%
Disagree
45
6 You think bank Should donate to Support Special Child. %
Strongly Agree 6%
Agree 56%
Neutral 18%
Disagree 14%
60% 56%
50%
40%
30%
20% 18%
14%
10% 6% 6%
0%
Disagree
46
7 You think that bank should think about Street Child & Street beggar. %
Strongly Agree 8%
Agree 37%
Neutral 8%
Disagree 33%
40% 37%
35% 33%
30%
25%
20%
15%
15%
10% 8% 8%
5%
0%
Disagree
47
8 You think that bank should consider Green Banking to support the %
Environment.
Strongly Agree 42%
Agree 50%
Neutral 4%
Disagree 2%
60%
50%
50%
42%
40%
30%
20%
10%
4%
2% 2%
0%
Disagree
From the above diagram we can see that, 42% respondents strongly agree, 50% agree,4% at
neutral position,2% disagree, and 2% strongly disagree with the statement.
48
9 You think bank should work on Human Rights. %
Strongly Agree 6%
Agree 66%
Neutral 24%
Disagree 4%
70% 66%
60%
50%
40%
30% 24%
20%
10% 6% 4%
0%
0%
Disagree
49
10 You think bank should contribute to improve woman empowerment to %
remove the poverty.
Strongly Agree 22%
Agree 58%
Neutral 12%
Disagree 4%
70%
60% 58%
50%
40%
30%
22%
20%
12%
10%
4% 4%
0%
50
11 You have positive outlook towards the bank that contribute to remove the %
poverty in Rural Sector.
Strongly Agree 20%
Agree 48%
Neutral 20%
Disagree 6%
60%
50% 48%
40%
30%
20% 20%
20%
10% 6% 6%
0%
Disagree
51
Chapter-6
Findings
52
Findings
United Commercial Bank
1. 40% of the respondent agreed that UCB contribute in Disasters management

sector.
2. 64% of the respondent agreed that UCB should contribute in socio-economic
development sector.
3. 74% of the respondent agreed that sponsorship in sports event by a bank is
important.
4. 60% of the respondent agreed that they feel positive towards the bank that donates
in education sector.
5. 62% of the respondent agreed that bank should provide financial assistance to
health institutions.
6. 64% of the respondent agreed that bank should donate to Special Child.
7. 54%of the respondent agreed that bank should think about Street Child & Street
beggar.
8. 48%of the respondent agreed that bank should consider Green Banking to
support the Environment.
9. 66% of the respondent agreed that bank should work on Human Right.
10. 76% of the respondent agreed that bank should contribute to improve woman
empowerment to remove the poverty.
11. 56% of the respondent agreed that bank should positive outlook towards the bank
that contributes to remove the poverty in Rural Sector.
53
Dutch Bangla Bank Ltd
1. 35% of the respondent agreed that DBBL contribute in Disasters management.

2. 50% of the respondent agreed that DBBL should contribute in socio-economic
development sector.
3. 52% of the respondent agreed that sponsorship in sports event by a bank is
important.
4. 52% of the respondent agreed that they feel positive towards the bank that donates
in education sector.
5. 67% of the respondent agreed that bank should provide financial assistance to
health institutions.
6. 56% of the respondent agreed that bank should donate to Special Child.
7. 37%of the respondent agreed that bank should think about Street Child & Street
beggar.
8. 50%of the respondent agreed that bank should consider Green Banking to
support the Environment.
9. 66% of the respondent agreed that bank should work on Human Right.
10. 58% of the respondent agreed that bank should contribute to improve woman
empowerment to remove the poverty.
11. 48% of the respondent agreed that bank should positive outlook towards the bank
that contributes to remove the poverty in Rural Sector.
54
Chapter-7
Recommendation & Conclusion
55
Recommendation
As majority of customer of both banks that CSR is an important sector and DBBL also consider
this sectors. So UCB should perform:
As majority customer think contribution to CSR areas like health, education, disaster
management, sports and socio-economic development sector is important. So UCB
should frequently donate at a increasing budget every time to these sector.
64% respondents of UCB and 56% respondents of DBBL considered donation to special
child is an important area of performing CSR. So UCB should contribute in this sector.
54% respondents of UCB and 37% respondents of DBBL considered donation to street
child and street beggar is an important area of performing CSR. So UCB should thinking
about in this sector.
48% respondents of UCB and 50% respondents of DBBL considered green banking to
support the environment is an important area of performing CSR. So UCB should more
contribute in this sector.
76% respondents of UCB and 58% respondents of DBBL considered contribution to

women empowerment is an important area of performing CSR. So UCB should
contribute in this sector.
56% respondents of UCB and 48% respondents of DBBL considered contribution to

remove the poverty in rural sector is an important area of performing CSR. So UCB
should contribute in this sector and try to put more effort in this sector.
56
Conclusion
Private commercial banks are playing a vital role in the development of our economy.
Government and Bangladesh Bank also play a crucial role in banking sector by regulating the
overall banking systems and setting rules and regulation in the activities of commercial banks. In
recent years of banking sector, UCB has shown better performance comparing with other first
generation banking. It was great pleaser for me to do my internship program in reputed
organization like UCB. The three months of practical orientation helps me to provide a wide
range of scope to observe the operations of bank. Overall the bank must make appositive attempt
to be more outward looking in their goals and aware of what is happening. I hope, in spite of all
my limitation the experience of sharing works in such environment will help me a lot in my
future professional life. I wish continuous success and healthy business portfolio of UCB Darus
Salam Road Branch, Dhaka.
57
Chapter-8
Bibliography
58
Bibliography
Report and Documents
United Commercial Bank Limited, Annual Report 2015
United Commercial Bank Limited, Annual Report 2016
Website
www.ucb.com.bd
59
Chapter-9
Appendix
60
Questionnaire on Unfolding Customers Perception Regarding important
Areas of Corporate Social Responsibility Activities of Banking Industry: A
Study on United Commercial Bank and Dutch Bangla Bank Ltd
This surveys on collects the information about the Unfolding Customers Perception Regarding
Important Areas of Corporate Social Responsibility Activities of Banking Industry: A Study on
United Commercial Bank and Dutch Bangla Bank Ltd. This is to inform you that this
information will be used in academic purpose on and every respondent will ensure that the
collected data will be maintained confidential.
A. Name:
B. Gender:
C. Designation:
61
Questionnaire
01. You have positive attitude towards the bank that contribute in Disasters management
sector.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
02. You think bank should contribute in socio-economic development sector.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
03. To you sponsorship in sports event by a bank is important.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
62
04. You feel positive towards the bank that donates in educational sector.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
05. You think that bank should provide financial assistance to health institutions.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
06. You think bank should donate to Support Special Child.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
63
07. You think that bank should think about Street Child & Street beggar.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
08. You think that bank should consider Green Banking to support the Environment.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
09. You think bank should work on Human Rights.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
64
10. You think bank should contribute to improve woman empowerment to remove the
poverty.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
11. You have positive outlook towards the bank that contribute to remove the poverty in
Rural Sector.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
65
Other Factors
On the scale of 1 to 5, please rate the following (tick the response that best applies)
Strongly agree Agree Neutral Disagree Strongly

disagree
5 4 3 2 1
Serial Statement 5 4 3 2 1
66

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Chapter -1

1.3 Origin of the Report

1.4 Scope of the Report

1.5 Significance of the Study

My specific objectives of the study are given below:

To Identify CSR activities of UCB.

1.7 Methodology of the study

Primary data are collected through questionnaire.

Five point Likert scale has been followed to develop questionnaire.

1.8 Limitations of the Study

Not everyone was willing to share information regarding the project.

Interns were not allowed to have access in PCs.

2.2.3 Core Values

We emphasize on professional ethics.

2.3 The Board of Directors

2.5 Green Banking

2.6 Online Banking Service

Implementation of Enterprise Resource Planning (ERP) software for Office Automation

Implementation of Corporate Intranet Portal

Implementation of a new Green Disaster Recovery Site (DRS)

Retail business deals with the-

Liability management under individual name

Asset business (governed by prudential guideline of Bangladesh Bank)

Service base fees income

UCB Savings Plus

UCB youngster savings

UCB DPS Plus

UCB Monthly Earning Plus

UCB Quarterly earning Plus

UCB Money Maximize

Home mortgage loan

Advance Against Salary

House-hold durable loan

2.8 Future Plan and Challenges

Multi product offering

One stop financial shop

Differentiated product offering

Expand distribution with the help of modern technologies

Utilizing every channel to integrate the experience of the bank

Mining and analyze customer data

Cost optimization through CRM base segmentation and offering

Integrated documentation and risk mitigation

The OBU customer has to maintain an account in approved FC (preferable USD).

The OBU customer cannot open local currency in OBU.

Outward or inward remittance can make freely

Remittance against Export freely

Remittance against Import freely

Issuance of LC & amendment

Scrutiny, lodgment & retirement of import documents

Issuance of shipping guarantee

Import bill discounting

Bill purchasing/ bill discounting

Export against advance payment

Placement of fund in FC with other bank vice versa

Borrowing & placement (local &overseas) in FC

3.2 CSR in banks and linkage to financial performance

3.3 Customer satisfaction and loyalty in banking

3.4 Drivers of customer satisfaction in banking

4.1.1Contribution to Educational Sector

4.1.3Contribution to Disaster Management Sector

4.1.5Contribution to Sports Sector

United Commercial Bank

1. 40% of the respondent agreed that UCB contribute in Disasters management

1. 35% of the respondent agreed that DBBL contribute in Disasters management.