Treasury Service

Uttara Bank PLC. Treasury Service

Uttara Bank treasury is entrusted with the responsibility of managing various financial risk. For significant risk exposure an effective control over the financial activities is a must. For risk management purpose and to combat all inherent financial risks. Treasury has become the most important part of any financial institution.

 

Uttara Bank PLC. treasury provides all sorts of treasury solutions including foreign Exchange (Derivatives Products), Money market, fixed income,and corporate needs based solution.

Foreign Exchange:

Uttara Bank PLC. treasury started its journey with full phased equipment like most sophisticated tools RDS (Reuter Dealing System) first user among the local Bank in Bangladesh with a view to provide need based competitive exchange rates to our importers, exporters, and exchange houses (Foreign Remitters).

Fx Products:- 

i) Spot Dealing
ii) Forward Dealing 
iii) SWAP
iv) Corporate Deals
v) Term Placement

Money Market Products;-

i) Call Money 
ii) FDR/Term Money/ Treasury Line
iii) REPO
iv) Reverse Repo

Fixed Income Business:-  

Uttara Bank is an active primary Dealer of Government Securities. In order to activate a vibrant secondary market for Government securities, Bangladesh Bank nominated Uttara Bank PLC. as a primary Dealer in the year of 2003. Since inception we are actively trading Government securities in the secondary market.

 

“Investment in Government Treasury Bills and Treasury Bonds, Ensure your secured Future”

 

A Primary Dealer (PD) Bank in Bangladesh

 

In 2003, Bangladesh Bank, a central bank of Bangladesh invited to all scheduled Bank for taking membership as a PD for trading Bangladesh Government Treasury Bills and Bond. From the very beginning Uttara Bank PLC. is an active Primary Dealer in Bangladesh.

 

Bangladesh Government Treasury Bills and Bonds

 

1.The Government of the People’s Republic of Bangladesh issues through auction the Treasury Bills of 91-day,182-day & 364-day maturity and Treasury Bonds of 2 years, 5 years, 10 years, 15 years & 20 years maturity for the purpose of safe and gainful investment of the fund  by the  individuals, institutions both resident and non-resident  in Bangladesh.

Bangladesh Government Treasury Bond (BGTB) is coupon bearing bond and paid in semi-annually. 

 

Eligibility to purchase the Govt. Treasury Bills and Bonds:

 

Individuals and institutions resident in Bangladesh including pension fund, provident fund, Banks, financial institutions, insurance companies, corporate bodies are eligible to purchase the Treasury Bills and Bonds

Individuals and institutions not resident in Bangladesh are also eligible to purchase the treasury  bonds, with coupon payments and resale/redemption proceeds transferable abroad in foreign exchange, provided that- 
The purchase is made with funds  from a nonresident  Foreign currency /NRTA Account with a bank in Bangladesh in the name of  purchaser;

The BGTB purchased by a non-resident may freely be resold to a resident in Bangladesh or to another non-resident. Resale to a non-resident shall be subject to the provision of (i) above would be freely permissible.

 

Where the Govt. Treasury Bills and Bonds are available:

 

The Govt. Treasury Bills and Bonds are readily available to purchase over the counter from front office of Treasury Division and all the branches of Uttara Bank PLC.

 

Benefits of Govt. Treasury Bills/Bonds:

 

i) Maturity wise attractive profit is being paid against the investment in bills and bonds; the rate of profit/ interest is  
Changeable in each auction as well as in the secondary market based on the demand and supply.

ii) As the Treasury Bills and Bonds are issued by the Government, so the investment in these instruments are safe and risk free.

iii) Investors may avail maturity advantages in investing in different maturities of Treasury Bills/Bonds.

iv) An investor/purchaser may participate in the primary auction held in Bangladesh Bank through Uttara Bank PLC.

v) Principal and profit/ interest are paid on maturity for short term investment in treasury bills.

vi) Profit of Treasury Bonds is payable after each six month interval from the date of issue and principal will be paid at maturity.

vii) Coupon payments and resale/redemption proceeds are freely transferable abroad in foreign exchange.

Viii) The purchaser may resale their securities before maturity to the Primary Dealers and also in the secondary market.

ix) Profit earnings are receivable even for holding period of a day(s).

x) Rate of return is relatively higher than other investments.

xi)) Scope to earn capital gain through buying and selling of Govt. Treasury Bills and Bonds.

xii) Investor can take decision by measuring yield curve which is provided by us through email.

xiii) Your investment are fully safe and default risk is zero. 

 

Face value of Govt. Treasury Bills and Bonds:

 

Purchaser may purchase a minimum face value of Treasury Bills/Bonds of Tk. 1.00 lac or in multiplies of Tk. 1.00 lac without any maximum limit.

 

Purchase procedure of Govt. Treasury Bills/Bonds:

 

i) Any eligible individual or institution may purchase the Bills/Bonds from the treasury and any designated branch from our front Office of Treasury Division and our all of the branches also subject to deposit of equivalent amount of purchased Govt. Treasury Bill /Bonds in their Account. 

ii) Copies of sale/buy agreement and confirmation letter of securities purchase will be treated as ownership certificate of Govt. Treasury Bill /Bonds and that will be given to buyers from the concerned offices of Uttara Bank PLC.

Sale/Encashment of Govt. Treasury Bills/Bonds:

 

i) Uttara Bank PLC. will credit principal and profit of Govt. Treasury Bill /Bonds as the case may be to their concerned customer a/c after maturity.

ii) Individuals, institutions etc. resident in Bangladesh may resale their bills/bonds in the secondary market before maturity.

iii) Govt. Treasury Bills and Bonds may be resold to the Primary Dealer Banks or to Bangladeshi resident and institutions like-banks, corporate bodies, provident fund and pension fund management authorities etc.

iv) Non-resident individuals and institutions may resale their Treasury Bonds at any point of time before maturity to 

 (1) A resident in Bangladesh or

 (2) Other non-resident who maintains foreign currency account/NRTA with any bank in Bangladesh

 

The treasury Bills and treasury Bonds are issued by Bangladesh Bank on behalf of Bangladesh Government So the investment in Bills and Bonds are safer and risk free.