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7 Introduction & Conclution

7 Introduction & Conclution

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Published by Mahfuza Akter Mili
MBA; Internship report on
Credit Management and General Banking: A practical Study
on Janata Bank Limited,
MBA; Internship report on
Credit Management and General Banking: A practical Study
on Janata Bank Limited,

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Published by: Mahfuza Akter Mili on Jul 12, 2013
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07/12/2013

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CREDIT MANAGEMENT& GENERAL BANKING OF JANATA BANK 
[
Page
 
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82]
 
THE UNIVERCITY OF ASIA PACIFIC
MBA; Internship repot 
 
1.1 
 
INTRODUCTION 
Financial institutions are very much essential for the overall development of a country. Especially banks play an important role in the field of promotion of capital, encouragement of entrepreneurship,generation of employment opportunities etc. Market economy or free economy is widely used-conceptabout the present economy of Bangladesh. The country adopted the concept in the late seventies withthe privatization of significant number of enterprises. The practices of free market economy startedfrom the eighties with the changing of the world economy. A number of initiatives were taken fromthe nineties to increase the competition and efficiency in money market, relaxation of unwanted rulesand regulations, improvement of loan related law and other situations and improve the financial baseof the banks of the country.
 1.2 
 
ORIGIN OF THE REPOR
The report entitled “A Case Study on
General Banking & Credit Management of Janata
Bank” has
 been prepared as a partial fulfilment of MBA Program in Department of Business Administrationfrom The University of Asia Pacific.
 
1.3 RATIONALE OF THE STUDY 
Due to the increased competition of the increased number of commercial banks and the growingeconomy, the expectations of the customers have also increased than ever before. Realizing the present condition, banks, especially the commercial banks are trying to elevate their loan givingservice as much as reachable to their customers. The most serious difficulty facing the financial sector is the high level of interest rate and inflation rate. So it is the duty of the top management of thecommercial banks to work with the situation.
1.4 OBJECTIVES OF THE REPOR
1.4 OBJECTIVES OF THE REPOR
The purpose of this study is to find and analyze the Credit management (its outstanding, recovery,classified loans etc), approval and monitoring process of Janata Bank Limited. It will alsoinclude the performance of credit management in recent years. Find out different creditfacilities that Janata Bank Limited is providing for their customers. Also to give an idea aboutthe securities behind the loan facilities and issuing different bank guarantees.
The objectives of this report are classified into two parts:Part 1: Organization Part
•To explore various features of Janata Bank Limited, Farmgate Corporate Branch, Dhaka and
Janata Bank Limited (JBL) as a whole by providing an overview.
Part 2: Project Part
 
To know the General Banking and credit management of JBL.
 
To find our risks associated with the credits Management of JBL.
 
To find out the limitations of Management procedure of JBL..
 
CREDIT MANAGEMENT& GENERAL BANKING OF JANATA BANK 
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THE UNIVERCITY OF ASIA PACIFIC
MBA; Internship repot 
 
Specific objectives:
 
To assess the credit structure of the bank in practice.
 
To measure the effectiveness of the bank in the utilization of available resources.
 
To identify the recovery performance of the bank.
 
To point out the problems in fund utilization and recovery thereon.
 
To make a critical reasoning in respect to the treatment of provision for bad and doubtfulcredit.
 
To assess and highlight on the legal actions followed by the bank.
 
To find out the extent of similarities and dissimilarities in the course of action followed byJanata Bank. To compare the credit management of the bank with the Bank Companies Act1991.
 
To evaluate the credit management of the bank with respect to IAS#30.
 
To compare the credit supervision of the bank. To compare the quantitative change from phase-1 (1996-2000) to phase-2 (2000-205).
 
To find out problems and suggesting recommendations for further improvement.
1.5 
 
SCOPE OF THE STUD
Janata Bank is the second largest commercial Bank in Bangladesh. Janata Bank operates through 848 branches including 4 overseas branches at United Arab Emirates. It is linked with 1221 foreigncorrespondents all over the world. I am assigned to learn practical knowledge from Janata Bank,29Dilkhusa Corporate Branch. B/A.Motijel.Dhaka-1000. In this study I would try to concentrate on thetheoretical aspect of credit management, that is, the definition of credit management, policy of creditmanagement, tools for managing credit etc. I would analyze the data on the bank and various programs for loan recovery, problems in loan in loan recovery, pattern of loan recovery and the performance of the bank under study in loan recovery, the information in respect to the classificationof unsound credit and provision thereon and also concentrates on the performance of the bank. Andfinally I would conclude with the critical evaluation of the credit management under the guidelines of the Bank Companies Act 1991, IAS#30 and a discussion on the major findings and recommendations.
1.6
 
METHODOLOGY OF THE STUDY
The report is descriptive in nature. To fulfill the objectives of this report total methodology hasdivided into two major parts:
a)
 
Data Collection Procedure:
In order to make the report more meaningful and presentable, two sources of data and informationhave been used widely.
The “Primary Sources” a
re as follows:-
 
I have made questionnaire survey of both managers of credit department and the customers whohave taken loans from Janata Bank.
 
Relevant file study as provided by the officers concerned.
 
CREDIT MANAGEMENT& GENERAL BANKING OF JANATA BANK 
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THE UNIVERCITY OF ASIA PACIFIC
MBA; Internship repot 
 
The “secondary Sources” are as follows:
-
 
 
Annual report of Janata Bank 
 
Periodicals Published by Bangladesh Bank 
 
Office files and documents
 
Study related books and journals
 
Web sites
b)
 
Data Processing & Analysis:
Collected information have then processed & compiled with the aid of MS Word, Excel & other related computer software. Necessary tables have been prepared on the basis of collected data andvarious statistical techniques have been applied to analyses on the basis of classified information.Detail explanation and analysis have also been incorporated in the report.
1.7 
 
LIMITATION OF THE STUDY 
To prepare a report on the topic like this in a short duration is not easy task. In preparing this reportsome problems and limitations have encountered which are as follows:a)
 
The main constraint of the study was insufficiency of information, which was required for thestudy. There are various information the bank employee cannot provide due to security andother corporate obligations. b)
 
As the data, in most cases, are not in organized way, the bank failed to provide allinformation.c)
 
Due to time limitation, many of the aspects could not be discussed in the present report.

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