Internship Report
On
Credit Management & Performance Analysis
Of
Jamuna Bank Limited
On
Credit Management & Performance Analysis
Of
Jamuna Bank Limited
Credit Management & Performance Analysis of Jamuna bank limited
PREPARED FOR,
Fakir Tajul Islam
Senior Lecturer
Department of Business Administration UTTARA UNIVERSITY
Fakir Tajul Islam
Senior Lecturer
Department of Business Administration UTTARA UNIVERSITY
PREPARED BY,
Tanvira Ahmed
ID: F21131112008
Batch: 26th
Program: BBA
UTTARA UNIVERSITY
Tanvira Ahmed
ID: F21131112008
Batch: 26th
Program: BBA
UTTARA UNIVERSITY
Date of Submission: 15.08.2015
LETTER OF TRANSMITTAL
15th August, 2015
Fakir Tajul Islam Senior Lecturer
Department of Business Administration UTTARA University
Fakir Tajul Islam Senior Lecturer
Department of Business Administration UTTARA University
Subject: Request for approval of Internship Report
Dear Sir,
With the passage of time, I am student of Department of Business Administration standing on the other entity of my course completion, hence are finalized with my internship report naming as “Credit Management & Performance Analysis of JBL”. Vividly enough, my research comprises adequate endeavors. But no doubt, my contribution will be best evaluated on your sharp scale of acceptance & analytical remarks.
Consequently, I am submitting my report on your very concern. Hopefully, you will discover my well-researched, informative approach as a hallmark of hard work. Rather, in case of any further clarification or elaboration as to my report, I would welcome the opportunity to consult with you to explore how my findings could best meet your needs.
With the passage of time, I am student of Department of Business Administration standing on the other entity of my course completion, hence are finalized with my internship report naming as “Credit Management & Performance Analysis of JBL”. Vividly enough, my research comprises adequate endeavors. But no doubt, my contribution will be best evaluated on your sharp scale of acceptance & analytical remarks.
Consequently, I am submitting my report on your very concern. Hopefully, you will discover my well-researched, informative approach as a hallmark of hard work. Rather, in case of any further clarification or elaboration as to my report, I would welcome the opportunity to consult with you to explore how my findings could best meet your needs.
Thanking You.
With best regards,
Tanvira Ahmed Student ID: F21131112008 Batch:26th
Program: BBA
With best regards,
Tanvira Ahmed Student ID: F21131112008 Batch:26th
Program: BBA
DECLARATION OF STUDENT
This is to notify that this report “Credit Management & Performance Analysis of JBL.” has been prepared as a part of my internship formalities. It is an obligatory part of our BBA program to submit an internship report. Moreover, I was inspired and instructed by my supervisor Fakir Tajul Islam, Senior Lecturer, Department of Business Administration, UTTARA University.
Tanvira Ahmed
ID: F21121112008
Batch: 26th
Program: BBA
ID: F21121112008
Batch: 26th
Program: BBA
ACKNOWLEDGEMENT
I am Tanvira Ahmed and would like to express my heartiest gratitude to those who helped me all the way through to complete my internship report on “Jamuna Bank Limited”.
At the very beginning, I want to thank my academic supervisor Fakir Tajul Islam, Senior Lecturer, Department of Business Administration, UTTARA University , for providing me all the necessary helps for the completion of this report. Thank you Sir for guiding me to start and complete successfully of this report. Secondly, I would like to thank, Zhishan Sahriar, Executive Officer, Jamuna Bank Ltd. for helping me to prepare this report with adequate and correct information. I am very much grateful to Jhumka Mandal Probationary Officer, Jamuna Bank Ltd. who helps me a lot.
I would convey our special thanks to our parents whose inspirations have enabled me to complete this report of this particular course.
I also apologize heartily for any omitted name whose contribution was also complementary for any possible aspect. Lastly, I solemnly thank The Allah.
At the very beginning, I want to thank my academic supervisor Fakir Tajul Islam, Senior Lecturer, Department of Business Administration, UTTARA University , for providing me all the necessary helps for the completion of this report. Thank you Sir for guiding me to start and complete successfully of this report. Secondly, I would like to thank, Zhishan Sahriar, Executive Officer, Jamuna Bank Ltd. for helping me to prepare this report with adequate and correct information. I am very much grateful to Jhumka Mandal Probationary Officer, Jamuna Bank Ltd. who helps me a lot.
I would convey our special thanks to our parents whose inspirations have enabled me to complete this report of this particular course.
I also apologize heartily for any omitted name whose contribution was also complementary for any possible aspect. Lastly, I solemnly thank The Allah.
TABLE OF CONTENTS
Topic Page No
Chapter-01: The Organization 13
1.1 Introduction 14
1.2 History 14-15
1.3 Mission and Vision 15
1.4 Objectives of JBL 15
1.5 Core values 16
1.6 Management 16
1.7 Ownership Structure 16
1.8 Product/ Service offering 17-21
1.9 Operational network Organ gram 22
Chapter-01: The Organization 13
1.1 Introduction 14
1.2 History 14-15
1.3 Mission and Vision 15
1.4 Objectives of JBL 15
1.5 Core values 16
1.6 Management 16
1.7 Ownership Structure 16
1.8 Product/ Service offering 17-21
1.9 Operational network Organ gram 22
Chapter -02: Job Responsibilities & Observation 23
2.1 The Nature of the jobs and my Specific Responsibilities 24-25
2.2 Observation 26
Chapter- 03: The Project (Credit Department of JBL) 27
3.1 Description of the project
3.1.1 Origin of the report 28
3.1.2 Background of the report 28
3.1.3 Objectives of the project 28
3.1.4 Methodology 29
3.1.5 Scope of the report 29
3.1.6 Benefits of the report 30
3.1.7 Limitation of the report 30
3.2 Credit Department of JBL
3.2.1 Credit policy of JBL 31
3.2.2 Credit principles 32
3.2.3 Credit rating 33
2.1 The Nature of the jobs and my Specific Responsibilities 24-25
2.2 Observation 26
Chapter- 03: The Project (Credit Department of JBL) 27
3.1 Description of the project
3.1.1 Origin of the report 28
3.1.2 Background of the report 28
3.1.3 Objectives of the project 28
3.1.4 Methodology 29
3.1.5 Scope of the report 29
3.1.6 Benefits of the report 30
3.1.7 Limitation of the report 30
3.2 Credit Department of JBL
3.2.1 Credit policy of JBL 31
3.2.2 Credit principles 32
3.2.3 Credit rating 33
3.2.4 Credit facilities of JBL 34
3.2.5 Lending criteria of JBL 34-35
3.2.6 Credit evaluation principles 35-36
3.2.7 Different types of credit facilities 37-40
3.2.8 Interest rate on loans & advances 40-41
3.2.9 Securities against advances 41-42
3.2.10 Sector wise payment of loans 42-43
3.2.11 How JBL recover their loan 44
3.2.12 Problem in loan recovery 44-45
3.2.13 Overall procedure of sanctioning loan 46-50
3.2.14 Computation of credit risk grading 50-53
3.2.5 Lending criteria of JBL 34-35
3.2.6 Credit evaluation principles 35-36
3.2.7 Different types of credit facilities 37-40
3.2.8 Interest rate on loans & advances 40-41
3.2.9 Securities against advances 41-42
3.2.10 Sector wise payment of loans 42-43
3.2.11 How JBL recover their loan 44
3.2.12 Problem in loan recovery 44-45
3.2.13 Overall procedure of sanctioning loan 46-50
3.2.14 Computation of credit risk grading 50-53
Chapter -04: Project Analysis and Findings 54
4.1 SWOT Analysis 55-59
4.2 Financial Data Analysis 60-70
4.3 Questionnaire Survey Analysis 71-72
4.4 Analysis of Customer Satisfaction Level 73-79
4.1 SWOT Analysis 55-59
4.2 Financial Data Analysis 60-70
4.3 Questionnaire Survey Analysis 71-72
4.4 Analysis of Customer Satisfaction Level 73-79
Chapter- 05: Recommendation & Conclusion 80
5.1 Recommendation 81
5.2 Conclusion 82-84
Reference 85
Appendix 86-88
5.1 Recommendation 81
5.2 Conclusion 82-84
Reference 85
Appendix 86-88
Table of Charts and Illustration
Chart-01: Organizational Hierarchy 22
Chart-02: Interest Rates of Loans & Advances 40-41
Chart-03: Securities against Advances 41-42
Chart-04: Sector Wise payment of Loans 42-43
Chart-05: Allocate weights to Principal Risk Components 51
Chart-06: : Establish the Key Parameters 52
Chart-07: Assign weights to each of the key parameters 52-53
Chart-08: Arrive at the Credit Risk Grading based on total score obtained 53
Chart-09: SWOT Analysis of JBL 55
Chart-10: Year wise deposit 60
Chart-11: Year wise Loans & Advances 61
Chart-12: Credit to deposit ratio 64
Chart-13: Return on Asset (ROA) 65
Chart-14: Net Interest Income 66
Chart-15: Cash Position Indicator 67
Chart-16: Deposit Composition Ratio 68
Chart-17: Core Deposit Ratio 69
Chart-18: service received from the lending officer(s) 71
Chart-19: quality of The Credit Department service of JBL 72
Chart-20: Income level of clients per month 73
Chart-21: Experience of Clients Relating Profession 74
Chart-22: How Jamuna Bank is Different from other Banks? 75
Chart-23: Opinion Regarding Service Charge 76
Chart-24: The Loan Processing Time is Lengthy 77
Chart-25: The loan packages of JBL are attractive? 78
Chart-26: Area That Should Take Care of 79
Chart-02: Interest Rates of Loans & Advances 40-41
Chart-03: Securities against Advances 41-42
Chart-04: Sector Wise payment of Loans 42-43
Chart-05: Allocate weights to Principal Risk Components 51
Chart-06: : Establish the Key Parameters 52
Chart-07: Assign weights to each of the key parameters 52-53
Chart-08: Arrive at the Credit Risk Grading based on total score obtained 53
Chart-09: SWOT Analysis of JBL 55
Chart-10: Year wise deposit 60
Chart-11: Year wise Loans & Advances 61
Chart-12: Credit to deposit ratio 64
Chart-13: Return on Asset (ROA) 65
Chart-14: Net Interest Income 66
Chart-15: Cash Position Indicator 67
Chart-16: Deposit Composition Ratio 68
Chart-17: Core Deposit Ratio 69
Chart-18: service received from the lending officer(s) 71
Chart-19: quality of The Credit Department service of JBL 72
Chart-20: Income level of clients per month 73
Chart-21: Experience of Clients Relating Profession 74
Chart-22: How Jamuna Bank is Different from other Banks? 75
Chart-23: Opinion Regarding Service Charge 76
Chart-24: The Loan Processing Time is Lengthy 77
Chart-25: The loan packages of JBL are attractive? 78
Chart-26: Area That Should Take Care of 79
Figure-02: Year wise total loans & advances 61
Figure-03: Sector wise Distribution of Loan and advances 62
Figure-04: Geographical Location wise loans & Advances 63
Figure-05: credit to deposit ratio 64
Figure-06: Return on asset 65
Figure-07: Net interest Income 66
Figure-08: Cash Position Indicator 67
Figure-09: Deposit Composition Ratio 68
Figure-10: Core Deposit Ratio 69
Figure11: Recovery Performance of JBL 70
Figure-12: service received from the lending officer(s) 71
Figure-13: quality of The Credit Department service of JBL 72
Figure-14: Income level of clients per month 73
Figure-15: Experience of Clients Profession 74
Figure-16: How Jamuna Bank is Different from other Banks 75
Figure-17: Opinion Regarding Service Charge 76
Figure-18: the Loan Processing Time is Lengthy 77
Figure-19: The loan packages of JBL are attractive 78
Figure-20: Area That Should Take Care of 79
Figure-03: Sector wise Distribution of Loan and advances 62
Figure-04: Geographical Location wise loans & Advances 63
Figure-05: credit to deposit ratio 64
Figure-06: Return on asset 65
Figure-07: Net interest Income 66
Figure-08: Cash Position Indicator 67
Figure-09: Deposit Composition Ratio 68
Figure-10: Core Deposit Ratio 69
Figure11: Recovery Performance of JBL 70
Figure-12: service received from the lending officer(s) 71
Figure-13: quality of The Credit Department service of JBL 72
Figure-14: Income level of clients per month 73
Figure-15: Experience of Clients Profession 74
Figure-16: How Jamuna Bank is Different from other Banks 75
Figure-17: Opinion Regarding Service Charge 76
Figure-18: the Loan Processing Time is Lengthy 77
Figure-19: The loan packages of JBL are attractive 78
Figure-20: Area That Should Take Care of 79
LIST OF ABBREVIATION
A/C Account
B/L Bill of Leading
JBL Jamuna Bank Limited
CCH Cash Credit Hypo
CCP Cash Credit Pledge
SWIFT Society for Worldwide Interbank Financial
Telecommunication
SOD Secured Over Draft
DD Demand Draft
ERC Export Registration Certificate
GB General Banking
L/C Letter of Credit
LDBC Local Documentary Bill Collection
LDBP Local Documentary Bill Purchase
PO Pay Order
PAD Payment against Document
L I M Loan against Imported Merchandize
LTR Loan against Trust Receipt
IBP Income-Based Plan
ECC Export Cash Credit
SME Small & Medium Enterprises
HO Head Office
BOD Board of Directors
CIB Credit Information Bureau
PC Packing Credit
B/L Bill of Leading
JBL Jamuna Bank Limited
CCH Cash Credit Hypo
CCP Cash Credit Pledge
SWIFT Society for Worldwide Interbank Financial
Telecommunication
SOD Secured Over Draft
DD Demand Draft
ERC Export Registration Certificate
GB General Banking
L/C Letter of Credit
LDBC Local Documentary Bill Collection
LDBP Local Documentary Bill Purchase
PO Pay Order
PAD Payment against Document
L I M Loan against Imported Merchandize
LTR Loan against Trust Receipt
IBP Income-Based Plan
ECC Export Cash Credit
SME Small & Medium Enterprises
HO Head Office
BOD Board of Directors
CIB Credit Information Bureau
PC Packing Credit
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