Addressing the third convocation of the private Uttara University in Dhaka on Wednesday, he called for efforts to make them "genuine places for learning".
"An educational institution cannot turn into a profit-making establishment and that is not desirable either," he said.
This year, altogether 3,011 students were given honours and Master’s certificates, while two were awarded gold medals for outstanding academic performance.
Hamid referred to media reports that questioned the standard of private university education and brought to light various allegations of irregularities.
The president said such reports "disappointed" the nation and urged the authorities to take steps to improve their standard.
Otherwise, he warned, the main goal of education may prove hard to achieve.
Hamid asked private universities to offer better facilities for meritorious but poor students and those from backward communities.
"The universities, too, have obligations towards the people like ensuring quality higher education preserving the spirit of the Liberation War.
He also stressed broadening the fields of research and bringing up students in accordance with international standards.
He said that the government had widened the scope of setting up public and private universities to attain the target.
The president reminded the graduates of duties towards the people.
He said the students were indebted to the country and the society urging them to work for the welfare of the people.
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