Overall Internship Report For

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AN OVERVIE O! "#E E$UIP%EN" &EA'E !INEN(IN#) O! PUBA&I BAN* &I%I"E+

Executive Summary
I have prepare, this report as a part of -y pra.ti.a/ eva/0ation .o0rse1 !or this I ha, the
opport0nity to eva/0ate the 2or3 at P04a/i Ban3 &i-ite,, %otijhee/ Bran.h1 "he ,0ration of
-y st0,y 2as 50 ,ays1 It starte, on 10
th
A0g0st, 6010 an, .ontin0e, 0nti/ 10th O.to4er,
60101
In the General part, I have 2ritten intro,0.tion, O4je.tive of the st0,y, %etho,o/ogy,
&i-itation, !in,ings 7 Ana/ysis1
In the Part-II, I have intro,0.e, P04a/i Ban31 Ba.3gro0n, of P04a/i Ban3, "heir
%anage-ent aspe.t, -ission, vision, s/ogan, o4je.tive, Interest rate, Bran.hes, Infor-ation
"e.hno/ogy an, A0to-ation is ,es.ri4e, in this Part1 It a/so in./0,es finan.ia/ high/ights of
%otijhee/ Bran.h of P04a/i Ban3, 2here I ha, .o-p/ete, -y internee1
Part-III in./0,es &oan an, a,van.e progra-, (/assifi.ation of /oan an, A,van.e, Ban3
)0aranty, Re.overy of /oan et. 2here I ha, .o-p/ete, -y internee1
Part-IV, I have ,is.0sse, a4o0t -y "opi. 2hi.h is re/ate, to the &ease !inan.ing, here I
a/so sho2 the &ease app/i.ation for- an, ne.essary a// ,o.0-ent of /ease finan.ing1
In Part-V, I have ,is.0sse, a4o0t the &ease finan.ing I ,is.0sse, Perfor-an.e of P04a/i
4an3 &i-ite, 4y graphi.a/ representation1
Part-VI, I in./0,e the Pro4/e-s of e80ip-ent /ease finan.ing 0n,er /oan 7a,van.es1
An, Part-VII, I ,is.0sse, re.o--en,ation an, .on./0sions1
In this report, I have trie, to ,es.ri4e the pro,0.ts provi,e, 4y the %otijhee/ Bran.h1
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GENARAL PART
1. INTRODUCTION
Ban3 is a finan.ia/ inter-e,iary a..epting ,eposits an, granting /oans offers the 2i,est
-en0 of servi.es of any finan.ia/ instit0tions1
Ban3 provi,es ,ifferent servi.es /i3e pay-ent, .re,it, savings, ins0ran.e, se.0rity
4ro3erage, invest-ent 4an3ing, -er.hant 4an3ing, .ash -anage-ent, rea/ estate an,
.o--0nity ,eve/op-ent1 Ban3s p/ays a vita/ ro/e in an e.ono-i. .on,ition of a .o0ntry1 A
nation:s e.ono-i. goa/ .an 4e a.hieve, thro0gh 4an3 4y .ontro//ing over -oney, .re,it an,
interest rate1 A .o0ntries e.ono-i. .on,ition 4e.o-es s-oother if its 4an3ing syste- is
stronger1
P04a/i Ban3 &i-ite, is engage, in a// types of .o--er.ia/ 4an3ing servi.es 2ithin the
stip0/ations /ai, ,o2n 4y Ban3 (o-panies A.t 1551 an, ,ire.tives as re.eive, fro-
Bang/a,esh Ban3 fro- ti-e to ti-e1 It has ;51 4ran.hes a// over Bang/a,esh1 "hro0gh its
h0ge 4ran.hes P04a/i Ban3 is serving strong/y in the so.io e.ono-i. .on,ition in
Bang/a,esh1 E.ono-y 4e.o-es ,eve/ope, 4y 0sing the overa// 4an3ing syste-1 Ban3s
.o//e.t -oney fro- the ,epositor an, give /oan to the vario0s investors, at so-e fi<e,
interest1 By 0sing this /oan they 40i/, 0p in,0stry, -i//s, fa.tory et.1 an, so/ve /ot of
0ne-p/oy-ent pro4/e- in the .o0ntry an, th0s -a3e the .o0ntry:s e.ono-y high/y
prospero0s1 &ease finan.ing 0n,er /oans 7 a,van.es is no2 very pop0/ar for 2hi.h
.0sto-ers are intereste,1 A/tho0gh &easing is often tho0ght as a -o,ern ,ay finan.ing
te.hni80e in,i.ators are that /easing transa.tion too3 p/a.e aro0n, 6000 41. 2hen '0-erian
far-er /ease, too/s fro- te-p/e priest1
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2. OBJECTIVES OF THE STUDY
In the /ight of the a4ove ,is.0ssions the st0,y is ,esigne, to attain the fo//o2ing o4je.tives=
11 "o asses the /oan ,is40rse-ent position of P04a/i Ban3 &t,1 %otijhee/ (orporate
Bran.h1
61 "o i,entify 7 eva/0ate /ease finan.ing syste- of P04a/i Ban3 &i-ite,1
;1 "o ,eter-ine the .riti.a/ ana/ysis of E80ip-ent &ease !inan.ing of P04a/i Ban31
>1 "o ,eter-ine /ease vs 40y ,e.ision regar,ing e80ip-ent /ease finan.ing1
?1 "o i,entify an, eva/0ate .hara.teristi.s of ,ifferent types of /oan an, A,van.es
offere, 4y the Ban3 7 ,eter-ine the target ./asses of peop/e an, e/igi4i/ity to
O4tain &oan an, A,van.es1
@1 "o i,entify ho2 /ease finan.ing he/ps to -eet organiAationa/ goa/s1
91 "o i,entify pro4/e-s of e80ip-ent /ease finan.ing 0n,er /oan 7 a,van.es 7 provi,e
re/ative s0ggestion of these pro4/e-s1
3. METHODOLOGY OF THE STUDY
"he st0,y is 4ase, on 4oth theoreti.a/ an, e-piri.a/ st0,y1
Theoretical study:
"heoreti.a/ st0,y is 4ase, on se.on,ary ,ata 2hi.h are .o//e.te, in the fo//o2ing 2ays=
11 "he ,ifferent finan.ia/ ,ata for ana/yAing p0rpose has 4een .o//e.te, fro- the
ann0a/ reports an, prospe.t0s of P04a/i Ban3 &i-ite,1
61 Avai/a4/e /iterat0re s0.h as 4oo3s, jo0rna/s, ne2s/etter, resear.h reports re/ate, to
the topi.s have 4een .ons0/te, an, e/e.troni. -ateria/s /i3e ,ifferent 2ave sites have
4een visite, to prepare the theoreti.a/ fra-e 2or3 of the st0,y1
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Empirical study:
E-piri.a/ st0,y is 4ase, on pri-ary ,ata an, se.on,ary ,ata 2hi.h are .o//e.te, in the
fo//o2ing 2ays=
"he pri-ary ,ata in./0,e intervie2s 2ith the 4an3ers1 +0ring the internship perio, I
,is.0sse, 2ith the .on.erne, persons 2ith the ,ifferent aspe.ts of the topi. 0n,er st0,y1
"here 2ere a/so opport0nities to -a3e ./oser /oo3 a4o0t the ,ifferent po/i.y in ,ifferent
4an3ing syste-s1 "he -etho,s, o4servation an, intervie2, has 4een fo//o2e, in this respe.t1
On the other han, se.on,ary ,ata are .o//e.te, fro- ne2spaper, internet an, ,ifferent
jo0rna/s1
4. LIMITATIONS OF THE STUDY
In the ti-e of internee perio, I got the opport0nity to 2or3 in )enera/ Ban3ing +ivision,
&oans 7A,van.es +ivision1 Espe.ia//y I trie, to 3no2 ,etai/s a4o0t the BE80ip-ent &ease
!inan.ingC 0n,er /oan 7 a,van.es 2hi.h is -y -ain topi.1
+0e to the opport0nity of pra.ti.a/ orientation to the fa.t ,0ring the st0,y, the fin,ings sho2
a very ./osest pi.t0re of the rea/ sit0ations1 B0t this sho0/, 4e 0se, .onsi,ering the
fo//o2ing /i-itations1
11 ithin very short perio, it is very ,iffi.0/t for ,iagnosing an i-portant aspe.t a4o0t
.re,it pro.e,0re
61 Ban3 ,i,n:t provi,e a// ne.essary infor-ation of /ease finan.ing for their 4an3ing
se.re.y1
;1 "he Ban3 personne/ are very 40sy1
>1 !rose.on,ary so0r.es 2e have not got avai/a4/e re/evant ,ata1 %oreover, I have
no proper 3no2/e,ge to .o//e.t se.on,ary ,ata1
?1 P04a/i Ban3 &i-ite, is a 4ig organiAation1 It 2as very to0gh to 0n,erstan,
everything 2ithin this short ti-e1
@1 "his st0,y 2as .o-p/ete/y 4ase, on offi.ia/ re.or,s an, ann0a/ reports1
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91 Another /i-itation of this report is Ban3:s po/i.y of not ,is./osing so-e ,ata an,
infor-ation for o4vio0s reason, 2hi.h .o0/, 4e very -0.h 0sef0/1
5. NATURE OF ANALYSIS
By ana/ysis of the P04a/i Ban3 &i-ite, I got si< parts fro- these fin,ings 2hi.h are
e<presse, short/y as fo//o2s=
Firstly, OrganiAationa/ profi/e of P04a/i Ban3 &i-ite, is e<presse, in Part I1 In 2here I
have e<presse, ,ifferent things /i3e history of P04a/i Ban3 &i-ite,1 OrganiAationa/ /ayo0t,
&iterat0re revie2 of e80ip-ent /ease finan.ing et.1
Secondly, &oan an, A,van.e Ban3ing is e<presse, in Part II1 here I have e<presse,
,ifferent types of &oan an, A,van.e, s0ppose .ash .re,it, over ,raft, ,e-an, /oan, ter-
/oan, .ons0-er /oan s.he-e et.1

Thirdly, the tota/ pro.e,0re of e80ip-ent /ease finan.ing of p04a/i Ban3 &t, is e<presse,
in this part III1 In this part, I a/so try to e<press ,etai/ a4o0t e80ip-ent /ease finan.ing1
Fourthly, the perfor-an.e an, eva/0ation of ,ifferent fa.ts an, fig0res of &oan 7
A,van.es of P04a/i Ban3 are e<presse, in Part IV1 !ro- this part I o4serve, that no2 this
ti-e P04a/i Ban3 is trying to re.over their previo0s .on,ition1 'o P04a/i Ban3s present
.on,ition is 4etter an, is ,eve/oping fro- their previo0s .on,ition1
Fifthly, ,ifferent types of pro4/e- of e80ip-ent /ease finan.ing 7 a/so re/ative s0ggestions
of these pro4/e-s are e<presse, in Part V1 After ana/ysis a// pro4/e- it is easi/y o4serve,
that P04a/i Ban3 is fo//o2ing the tra,itiona/ 4an3ing syste-1
Finally, .on./0sions 7 re.o--en,ations are e<presse, in part VI1
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TECHNICAL PART
Chap!"#1
5. ORGANI$ATIONAL PROFILE OF PUBALI BAN% LIMITED.
5.1.1 A& O'!"'(!) *+ Ba&,-a.!/h0/ Ba&1(&, E&'("*&2!&3
"he 4an3ing in,0stry in Bang/a,esh is -ore than @0 years o/,1 "he (entra/ Ban3 of the
.o0ntry Bang/a,esh Ban3 .ontro/s an, -onitors the 4an3ing in,0stry1 At present, there are
;> D/o.a/, foreignE .o--er.ia/ 4an3s, ? ,eve/op-ent finan.ia/ instit0tion, 19 finan.e an,
/easing .o-panies in Bang/a,esh1 )overn-ent has re.ent/y iss0e, /i.enses to 8 -er.hant
4an3s1 Pri-ary ,e.ision has 4een ta3en to a//o2 another .o0p/e of /o.a/ .o--er.ia/ 4an3s
soon1
5.1.2 PUBALI Ba&1 L(2(!.3
PUBA&I BAN* &I%I"E+ is the /argest (o--er.ia/ Ban3 in Private 'e.tor in Bang/a,esh1
It provi,es -ass 4an3ing servi.es to the .0sto-ers thro0gh its 4ran.h net2or3 a// over the
.o0ntry1 "his Ban3 has 4een p/aying a vita/ ro/e in so.io-e.ono-i., in,0stria/ an,
agri.0/t0ra/ ,eve/op-ent as 2e// as in the overa// e.ono-i. ,eve/op-ent of the .o0ntry
sin.e its in.eption thro0gh savings -o4i/iAation an, invest-ent of f0n,s1 +0ring the /ast ;
years the gro2th rate of 4an3Fs earnings is -ore than 6?G on average1
5.1.3 V(/(*& a&. M(//(*& *+ h! P45a-( Ba&1 L..
Vision
"o e<.e/ as 4est private (o--er.ia/ Ban3 in Bang/a,esh 2ith -eti.0/o0s o4servan.e of
r0/es an, reg0/ations an, ens0re .o--it-ent to .orporate so.ia/ responsi4i/ity1
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Mission
"o 4e the -ost a,-ira4/e private (o--er.ia/ Ban3 in the .o0ntry1 "o get re.ognition as a
,yna-i., innovative an, .0sto-er s0pportive Ban31 "o -aintain .ontin0o0s an, stea,y
gro2th 2ith 0t-ost transparen.y an, to ,iversify ,eve/op-ent of reso0r.es1 "o enhan.e
.ontin0o0s ,eve/op-ent of Infor-ation an, "e.hno/ogy to -eet the ,e-an, an, .ha//enges
of the ti-e1
Slogan of P!
"o 3eep .ontin0e the gro2th 2ith rep0tation an, so.ia/ responsi4i/ity, it has its o2n s/ogan
is, "#i-thi$$er path %eya arthonaytic agrogoti&
5.1.4 H(/*"6 *+ P45a-( Ba&1 L(2(!.3
P04a/i Ban3 &i-ite, the s0..essor of the for-er Eastern %er.anti/e Ban3 &i-ite,
in.orporate, in 15?5 0n,er the .o-pany:s a.t 151;1 Eastern %er.anti/e Ban3 &t, 2as
nationa/iAe, 0n,er Bang/a,esh Ban3Fs DNationa/iAationE Or,er 1596 an, 2as rena-e, as
P04a/i Ban31 It 2as ,enationa/iAe, on ;0 H0ne 158; 0n,er the Bang/a,esh Ban3Fs
DNationa/iAationE A-en,-ent Or,inan.e 158;1 In 1596, the a0thoriAe, an, pai, 0p .apita/
of P04a/i Ban3 2as "3 ?0 -i//ion an, "310 -i//ion respe.tive/y1 At the ti-e of
,enationa/iAation in 158;, the pai, 0p .apita/ of the 4an3 2as "360 -i//ion1 In 158>, the
a0thoriAe, an, pai, 0p .apita/ of the 4an3 2as enhan.e, to "31@0 -i//ion ,ivi,e, into 11@
-i//ion or,inary shares of "3100 ea.h1 In the sa-e year, the 4an3 .reate, a reserve f0n, of
"361;0 -i//ion1 !o//o2ing the e<pansion of 40siness a.tivities a/ong 2ith the in.reases in
the vo/0-e of assets an, /ia4i/ities, a0thoriAe, .apita/ 2as raise, to "3?,000 -i//ion at the
en, of the 40siness year 1555, 2hi/e the pai, 0p .apita/ re-aine, 0n.hange,1 Reserve f0n,s
of the 4an3 2ere enhan.e, to "3@>>16 -i//ion in +e.e-4er 15551 "he 4an3 is /iste, 2ith
4oth +ha3a an, (hittagong 'to.3 E<.hanges1"he f0n.tions of the 4an3 in./0,e ,eposit
-o4i/iAation, finan.ing pro,0.tive a.tivities, .on,0.ting foreign e<.hange 40siness an,
provi,ing vario0s types of 4an3ing servi.es to the .0sto-ers1 "ota/ ,eposits of the 4an3 on
;1 +e.e-4er 1596 2ere "3 9@9158 -i//ion, 2hi.h rose to "3 ?, >05111 -i//ion in +e.e-4er
158>1 "ota/ /oans an, a,van.es of the 4an3 ,0ring these t2o referen.e perio,s 2ere
"3>911@> -i//ion an, "3 >,;;;1>@ -i//ion respe.tive/y1 "ota/ /ia4i/ities DassetsE of 4an3
99
2ere va/0e, at "3 9,6;;1@> -i//ion on ;1 +e.e-4er 158>1 (o-pare, to these, the va/0e of
tota/ ,eposits, tota/ /oans an, a,van.es, an, tota/ /ia4i/ities DassetsE on ;1 +e.e-4er 6000
2as "3 65,?5011 -i//ion, "3 61,?9616 -i//ion an, "3 ;;,>;@15 -i//ion respe.tive/y1 "he
,eposits .o-prise, savings ,eposits "3 11,@081@ -i//ion, fi<e, ,eposits "3 ?,??91; -i//ion,
.0rrent ,eposits "3 ;,5;;11 -i//ion, an, other ,eposits "3 8>5111 -i//ion1
5.1.5 I&!"!/ Ra! *+ P45a-( Ba&1 L..
Interest rate offere, 4y the 4an3 varie, 4et2een @1?G to 5G1 "he /an,ings 2ere -ost/y in
H0te, te<ti/e, rea,y-a,e gar-ents an, other /arge, -e,i0- an, s-a// s.a/e in,0stries,
transport, ho0sing, s-a// /oans, r0ra/ an, agri.0/t0ra/ .re,it, -i.ro .re,it, .re,it to tra,e an,
.o--er.e an, e<port-i-port finan.ing1 Rates of interest .harge, on its /oans an, a,van.es
varie, 4et2een 1;G an, 1@G1 "he 4an3 has h0ge non-perfor-ing /oans an, the ./assifie,
/oans a-o0nte, to "3 9,@011? -i//ion D;?16>G of tota/E on ;1 +e.e-4er 60001 In 6000, the
4an3 finan.e, 658 proje.ts in /arge, -e,i0- an, s-a//-s.a/e in,0stries1 In a,,ition to /oans
an, a,van.es, the 4an3 /ent "3 6;0 -i//ion in the .a// -oney -ar3et an, 4orro2e, "3 ;05
-i//ion fro- the inter-4an3 .a// -oney -ar3et in 60001
!oreign e<.hange 40siness han,/e, 4y the 4an3 in 6000 a-o0nte, to "3 1?,5;0 -i//ion
2hi.h .o-prise, e<port servi.ing "3 @,100 -i//ion, i-port finan.ing "3 8,690 -i//ion, an,
re-ittan.e servi.es "3 1,?@0 -i//ion1 "he 4an3 has .orrespon,ent re/ationships 2ith ??>
4an3s a// over the 2or/,1 Invest-ents of the 4an3 in 1555 stoo, at "3 ;,;18 -i//ion in
govern-ent se.0rities, in.o-e ta< 4on,, "reas0ry 4i//s, /oans to govern-ent, nationa/
invest-ent 4on,, 4ri,ge finan.ing, shares an, ,e4ent0res of .o-panies an, nationa/ priAe
4on,s1 "he 4an3 earne, net profits after ta<es 40t 4efore a,j0sting provision re80ire-ents
in a// years fro- 158> to 6000 e<.ept 1550 an, 15511 "he -anage-ent of the 4an3 is
veste, in a 1>--e-4er 4oar, of ,ire.tors 2ith the -anaging ,ire.tor as its .hief e<e.0tive1
In 6001, the 4an3 ha, ;?0 4ran.hes D15@ 0r4an an, 1?> r0ra/E an, the tota/ n0-4er of its
e-p/oyees 2as >,8861 No2 the 4an3 has ;514ran.hes1
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5.1.7 B"a&8h N!)*"1 9 O&-(&! Ba&1(&,
PB& is the /argest private 4an3 in Bang/a,esh1 "he 4an3 2ithin stip0/ation /ay ,o2n 4y the
4an3 .o-pany a.t 1551 an, ,ire.tives as re.eive, fro- Bang/a,esh 4an3 fro- ti-e to ti-e
provi,e a// types of .o--er.ia/ 4an3ing servi.es1 It has ;89 4ran.hes A// over the .o0ntry
an, a/so en/iste, the +ha3a an, (hittagong sto.3 e<.hange as p04/i./y 80ote, .o-pany for
its genera/ ./ass of share1 No2 P04a/i Ban3 &i-ite, a/rea,y starte, on/ine 4an3ing servi.es
fro- 1
st
Nove-4er in 1;> 4ran.hes1
5.1.: A& *'!"'(!) *+ P45a-( Ba&1 C*"p*"a! B"a&8h; M*(<h!!-.
Na-e of the Bran.h = %otijhee/
A,,ress = 'ena *a/yan Bha4an, 15? %otijhee/ (IA,
+ha3a-1000
Bran.h 'tat0s = (orporate
Bran.h (o,e = ;>0
A+ 'tat0s = A+ Bran.h
)enera/ %anager = 01 )%
%anager I +)% = 01 D+)%E
A)% = 0>
No1 of E-p/oyee = @9
'()(* F(&a&8(a- H(,h-(,h/ *+ PBL. M*(<h!!- B"a&8h;
#mount in !ac+T,-
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Parti.0/ars Jear 6005
A0g0st 'epte-4er O.to4er
+eposits 1@@@8 18;;; 15@86
A,van.es >9>9@ ?1586 ?;>50
Profits 1606 1;9? 1?80
I-port >?>95 ?1?;8 @1006
E<port ;5@5; >6@9> >95>8
In2ar, Re-ittan.e 861 @91 1605
O0t2ar, Re-ittan.e 1655 ?06 1>01
Per.entage of ./assifie, /oan to "ota/ /oan K >1?@G
Ta%le-.)
'o0r.e= Ann0a/ report 60051
/omment: 2e .an see in this ta4/e that, in the -onth 'epte-4er ,eposit, A,van.es, Profit,
I-port an, e<port a-o0nt 2as higher than A0g0st an, O.to4er a-o0nt 2as a/so higher than
'epte-4er1 "hat -eans 2e .an say that ,eposit, a,van.es, Profit, I-port, E<port a-o0nt are
in.reasing ,ay 4y ,ay1 B0t in in2ar, an, o0t2ar, re-ittan.e, 2e .an sa2 that in 'epte-4er
it 2as ,e.reasing 40t in O.to4er again it 2as in.reasing1 'o overa// 2e .an say 4an3ing
perfor-an.e is goo,1
'()(0 Gro1th rate +2..0- of Pu%ali an,:
Parti.0/ars )ro2th Rate
A,van.es 60105G
Invest-ent >?165G
I-port >168G
E<port ?10;G
In2ar, foreign E<.hange 6?10>G
Ta%le-.2
/omment: #ere 2e .an see that in the year 6005, A,van.e gro2th rate 2as 60105G,
Invest-ent rate >?165G, I-port rate >168G, E<port rate ?10;G an, In2ar, foreign
E<.hange rate 6?10>G1 'o 2e .an say that Invest-ent gro2th rate is highest than other, then
the se.on, /arger gro2th rate 2as In2ar, foreign e<.hange1
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'()(0 3rgani4ational !ayout: 5ierarchy of the an,:
+ep0ty %anaging +ire.tor
)enera/ %anager
+ep0ty )enera/ %anager
Assistant )enera/ %anager
'enior Prin.ip/e Offi.er
Prin.ip/e Offi.er
'enior Offi.er
Offi.er
H0nior Offi.er
%essenger
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%anaging +ire.tor
5.1.1= I&+*"2a(*& T!8h&*-*,6 a&. A4*2a(*&3
!or giving 80i.3 .0sto-er servi.e a// the ;51 4ran.hes of the Ban3 have 4een .o-p0teriAe,
in./0,ing 4ran.hes sit0ate, at the re-ote areas /i3e 'an,2ip, 'hi4erhat, %eh,igonj1et.1 As
a res0/t, 80i.3 an, 4etter .0sto-ersF servi.e is 4eing possi4/e 2ith /ess -anpo2er1
Infor-ation "e.hno/ogy +ivision is provi,ing f0// ti-e s0pport servi.e for #ar,2are 7
'oft2are at the Bran.hes1 "i// no2 Ban3 are 0sing Ban3ing 'oft2are prepare, in o/,
-etho,s 4y o0tsi,e ven,or fir-1 Ban3 starte, to ,eve/op an i-prove, %0/ti 0ser (/ient
'erver Ar.hite.t0re syste- 'oft2are .a//e, P04a/i Integrate, Ban3ing 'yste- DPIB'E,
ena4/ing to give one stop servi.e to its ./ients1 "he 'oft2are is 4eing 0se, in RL %ission
Roa,, +ha3a Rai/2ay 'tation, 'hish0par3, !a3irapoo/, %a/i4agh, 'onargaon #ote/,
E/ephant Roa,, 7 Ra-p0ra Bran.hes of +ha3a (ity very s0..essf0//y1 After .o-p/etion of
this transition, the Ban3 2i// ta3e steps to ,eve/op its o2n on-/ine Ban3ing soft2are 2hi.h
2i// 4ring a ne2 era in 4an3ing se.tor1 As a res0/t, the na-e of P04a/i Ban3 &t,1 in./0,e, in
or/, E/e.troni. +ata4ase1 "o -eet the ,e-an, of ti-e P04a/i Ban3 &t,1 is preparing to
enter in A"% or/,1 In this respe.t, re.ent/y the Ban3 e<e.0te, an agree-ent 2ith
Infor-ation "e.hno/ogy (ons0/tant &t,1 for parti.ipating in share, A"% net2or3 an, A"%
servi.e is going to 4e intro,0.e, soon 0n,er the agree-ent1
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5.1.11. 3>1 B"a&8h!/ *+ *'!"a-- P45a-( Ba&13
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Chap!"#2
5.2 LOAN AND ADVANCES BAN%ING3
5.2.1 L*a& a&. A.'a&8! P"*,"a23
"his se.tion /en,s the f0n,s 2hat the 4an3 -o4i/iAes its vario0s ,eposit a..o0nts1 "his is
the 'e.on, f0n.tion of the Ban3:s t2o generi. f0n.tions=
+eposit -o4i/iAation
(re,it (reation
'in.e -ajor part of 4an3:s in.o-e is ,erive, fro- .re,it an, sin.e the 4an3s .re,ite, its
.0sto-er:s f0n,, 4an3 sho0/, ta3e e<tre-e .a0tion in /en,ing1 Other2ise, ,efa0/te, /oan
-ay in.rease1 If ,efa0/te, /oan in.rease, 4an3:s profita4i/ity an, .re,it giving .apa.ity 2i//
fa// 2hi.h is t0rn -ay res0/t in 4an3 r0n1
"he granting of a,van.es is one of the -ost i-portant f0n.tions of a 4an3 an, the test of a
4an3:s strength ,epen,s .onsi,era4/y on the 80a/ity of its a,van.es an, the proportion they
4ear to the tota/ ,eposit1 A/tho0gh re.eipt fro- E<.hange, (o--ission an, Ban3:s .harges
.ontri40te a fair a-o0nt of the profit of .o--er.ia/ 4an3, its earning are .hief/y ,erive,
fro- interest .harge, on /oans an, ,is.o0nts1 A 2ise an, pr0,ent in regar, to A,van.e is,
therefore, .onsi,ere, an, i-portant fa.tor inspiring .onfi,en.e in the ,epositors an,
.0sto-ers of a 4an31
!oan: &oan -eans 2hen 4an3 give -oney, a..or,ing to the ne.essity of the ./ient1 In this
pro.ess 4an3 give the 2ho/e ,e-an,a4/e a-o0nt to the ./ient at a ti-e1 On the other han,,
./ients have to repay the prin.ip/e a-o0nt 2ith interest 2ithin a fi<e, perio, of the ti-e1
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#d6ance: A,van.e pro.ess -ain/y 0se for those peop/e 2ho are re/ate, 2ith 40siness1 In
this pro.ess the 4an3 give /oan to the 40siness -an, 40t not the 2ho/e ,e-an,a4/e a-o0nt
at a ti-e1 Ban3 give /i-it to the /oan a4/e a-o0nt an, ./ient .annot .ross the /i-it1 (/ient
.an ,eposit an, 2ith,ra2 -oney 2ithin this /i-it1
Secured #d6ances: 'e.0re, a,van.es are those a,van.es 2hi.h are se.0re,
4y tangi4/e se.0rities of a,e80ate va/0e over 2hi.h the 4an3 has either
a4so/0te or .onstr0.tive .ontro/ in a,,ition to the persona/ g0arantee of the
.0sto-er1 here the a,van.e is se.0re,, the se.0rity .an 4e enfor.e, in .ase
of ,efa0/t 4y the 4orro2er, that is the se.0rity .an 4e so/, an, the sa/e
pro.ee,s a,j0ste, against the /oan a..o0nt after giving proper noti.e or
ta3ing /ega/ a.tion thro0gh the (o0rt for the p0rpose1
7nsecured #d6ances: An 0nse.0re, or ./ean a,van.e is one 2hi.h is
grante, to a .onstit0ent of 0n,o04te, stan,ing an, re/ia4i/ity an, on/y in
e<.eptiona/ .ir.0-stan.es an, for short perio,s 2itho0t o4taining any
se.0rity fro- hi- s04je.t to restri.tions i-pose, fro- ti-e to ti-e 4y
Bang/a,esh Ban3 or any .o-petent a0thority1
'(2(2 3%$ecti6es of !oan Ser6ices:
"he o4je.tives of /oan servi.e are as fo//o2s=
3n the Side of an,: %ain p0rpose of the 4an3 is to ,o 40siness1 Ban3s
.o//e.t -oney fro- the ,epositor an, give /oan to the vario0s investors, at
so-e fi<e, interest1 Ban3 gives /o2 interest to the ,epositor 40t .o//e.t high
interest rate fro- the investor1 In this pro.ess they earn high profit1 In so-e
.ases 4an3 give vario0s servi.es an, get high profit1
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3n the Side of /lient: (/ient ta3es /oan fro- 4an3, 4e.a0se they ,on:t have
s0ffi.ient a-o0nt of -oney1 By getting re80ire, /oan fro- 4an3 they are a4/e
to ,o 40siness an, earn /ot of profit1 By 0sing this /oan they 40i/, 0p
in,0stry, -i//s, fa.tory et.1 an, so/ve /ot of 0ne-p/oy-ent pro4/e- in the
.o0ntry an, th0s -a3e the .o0ntry high/y prospero0s1
'(2(8( !ending principle follo1ed:
"he /ast an, the -ost f0n,a-enta/ prin.ip/e of /en,ing are the integrity an, re/ia4i/ity of the
4orro2er1 "o avoi, 4a, ,e4t, it is the 4asi. fa.tor 4efore any /oan proposa/ .an 4e
.onsi,ere,1 "he st0,y of a 4orro2er invo/ves the st0,y of the si< (:s of the Party1 "his si<
(Fs refer to Parties=
(ash1
(hara.ter1
(apa.ity1
(ontro/1
(o//atera/1
(on,ition
'(2(9 Primary Security:
hi.h se.0rity is near to (ash s0.h as !+R, 'an.haypatra et.1
'(2(' Secondary Security:
"his is not -ova4/e property an, not near to .ash1 After se//ing this is .onverting to .ash
s0.h as B0i/,ing, &an, et.1
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'(2(: ;ocuments to %e furnished at the time of sending credit proposals:
A .opy of App/i.ation of the (0sto-er for 'an.tionI Rene2a/IEnhan.e-ent of the
.re,it1
A .opy of 0p to ,ate "ra,e &i.ense1
Persona/ net 2orth of the ProprietorI PartnerI +ire.tors 7 )0arantors1
A 'tate-ent of sto.3s to 4e s04-itte, 4y the 4orro2er 0n,er 4orro2erFs signat0re,
,0/y verifie, 7 signe, 4y the Inspe.ting Offi.ia/ DsE Bran.h-in.0-4ent sho2ing
,etai/e, parti.0/ars of the Ins0ran.e, if ne.essary1
'tate-ent of sto.3s 0n,er p/e,ge ,0/y verifie, 4y the 4ran.h Din .ase of (( - p/e,ge
7&I%E1
A0,ite, Ba/an.e sheet, "ra,ingI %an0fa.t0ring a/ong 2ith Profit 7 &oss A..o0nt
for the /ast three years of the 4orro2erFs fir-I.o-pany Dfor the in.eption of the
.o-pany if /ess then ; yearsE1
On verifi.ation of the .o//atera/ se.0rity a va/0ation .ertifi.ate in the stan,ar, for-at
sho2ing parti.0/ars an, s.he,0/e of the property to 4e s04-itte, 4y the Bran.h
In.0-4ent1
B&A:s 'atisfa.tion (ertifi.ate regar,ing se.0rityI,o.0-ents in stan,ar, for-at,
B&A:s opinion in Ban3:s stan,ar, for-at regar,ing a..eptan.e of the .o//atera/ to 4e
-ortgage, as se.0rity1
NE( DNon-en.0-4ran.e .ertifi.ateE 2ith f0// s.he,0/e of the property 7 area of the
/an, sho2ing the property to 4e -ortgage, to the Ban3 ,0/y iss0e, fro- the
respe.tive Register Offi.e an, .o0ntersigne, 4y the B1&1A1
In .ase of rene2a/I enhan.e-ent of e<isting /oan Ia,van.e en.0-4ran.e .ertifi.ate
sho2ing the property a/rea,y -ortgage, to the Ban3 iss0e, fro- Registrar Offi.e
,0/y (o0ntersigne, 4y B&A1
'tate-ents of a..o0nts in )!-1@I .o-p0teriAe, sheet of a..o0nt for /ast one year
2ith a.t0a/ transa.tions i1e1, 2itho0t any -anip0/ation1
A Report on the 40siness site of the 4orro2er ,0/y visite, 4y the Bran.h In.0-4ent1
(IB- D(re,it Infor-ation B0rea0) for- in the Bang/a,esh Ban3Fs 'tan,ar, for-at
2ith .0sto-erFs 0n,erta3ing in for- B*AC ,0/y fi//e, in .apita/ /etters an, signe,
2ith sea/ 7 ,ate1
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+etai/s of fi<e, assets of the 4orro2erI4orro2ing fir- 2ith 0p to ,ate va/0ation1
Present an, Per-anent a,,ress of the 4orro2erI)0arantorDsE 2ith spe.ifi. /o.ation1
Other Ban3sF (onfi,entia/ Report on the Borro2erI )0arantor fro- &o.a/ ,ifferent
4an3 4ran.hes1
(ertifi.ate regar,ing o4tain-ent of ,ee,sI3hatian, reven0e pai, re.eipt in origina/,
other papers re/ate, to the .o//atera/ proper ,o.0-entation1
A photograph of the .o//atera/ a/ong 2ith its s.he,0/e on its 4a.3 page ,0/y signe,
4y the owner and .ertifie, 4y the Bran.h In.0-4ent1
'eparate report on overa// perfor-an.es of the 4orro2er1
Esti-ate 4y an Engineer, Approve, p/an 2ith approva/ /etter fro- RAHU*, (+A,
*+A,R+A, %0ni.ipa/ A0thority, #o0sing sett/e-ent, e<pe.te, renta/ in.o-e
Din.ase of +&- #B& D)enE I(o--er.ia/E &oan1
NO( fro- the /essor Din .ase of /ease, property of RAHU*, (+A, *+A, R+A
%0ni.ipa/ A0thority, #o0sing sett/e-ent,E for -ortgaging the property of Ban31
"his NO( -ay 4e o4taine, after san.tion of the /i-it1
Assess-ent of 2or3ing, .apita/ re80ire-ent pro,0.tion .apa.ity, pro,0.tion target
2ith a.hieve-ent on /ast year:s, target, /ist of %a.hinery 2ith va/0ation Din (ase of
-an0fa.t0ring .on.ernE invoi.eI-oney re.eipt1
or3 or,erIs0pp/y or,er, +epart-enta/ .ertifi.ate regar,ing progress of 2or3s Din
.ase, of 2or3 or,er finan.eE1 Assign-ent of 2or3 or,er thro0gh Po2er of Attorney
of the 4orro2er ,0/y a..epte, 4y the +epart-ent Dto 4e o4taine, prior ,is40rse-ent
of /oanE1
Pro,0.tion .apa.ity, proje.tion, n0-4er of VA" ./earan.e .ertifi.ate, /i.ense fro-
+1(1 Offi.e for 40rning of 4ri.3s et.1 Din .ase of 4ri.3 finan.eE1
&1R1A11 D&en,ing Ris3 Ana/ysisE report for san.tion of .re,it for "311100 (rore 7
a4ove1
Reso/0tion of Boar, of +ire.tors, /ist of +ire.tors in !or- - LII - D)ovtE ,0/y
.ertifie, 4y the Registrar of Hoint 'to.3 (o-pany 7 !ir-s, %e-oran,0- 7
Arti./es of Asso.iation 2ith .ertifi.ate of in.orporationI.o--en.e-ent of 40siness
Din .ase of P04/i. &i-ite, (o1E1
H0stifi.ation for re.o--en,ation of B% 7, R% for san.tion of /oan, a,van.e1
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Ban3 is servi.e as 2e// as profit oriente, organiAation1 'o, -ar3eting of /oans an, a,van.es
has a/2ays 4een pro-inent an, profita4/e f0n.tion of a Ban31 'an.tioning (re,it to
.0sto-ers an, others o0t of the f0n,s at its ,isposa/ is one of the prin.ip/e servi.es of a
-o,ern Ban31 A,van.es -a,e in P04a/i Ban3 in ,ifferent nat0res1
'(2(< #;V#=/E M#=#GEME=T
<() /lassification of #d6ances:
)() /ash /redit
(ash .re,it is an arrange-ent 4y 2hi.h the .0sto-er is a//o2e, to 4orro2 -oney 0p to a
.ertain /i-it1 "h0s, (ash (re,it is 'hort- ter- an, .ontin0o0s pro.ess in 2hi.h +eposits
an, ith,ra2a/s going on fre80ent/y1 Interest is .harge, on/y for the a-o0nt 2ith,ra2s an,
not for the 2ho/e a-o0nt .harge,1 It is operate, in the sa-e 2ay as .0rrent a..o0nt on
2hi.h an Over,raft has 4een san.tion1 (ash (re,it a..o0nts are, ho2ever, -aintaine, in a
separate /e,ger1 Pri-ary se.0rities 0n,er .onsi,eration in .ase of (ash (re,it are goo,s,
pro,0.t an, -er.han,ise1 "his is the, -ost favorite of 4orro2ing 4y /arge .o--er.ia/ an,
in,0stria/ .on.erns1 'e.on,ary se.0rities are &an,, #o-e1 In the (ash (re,it ./ient .an
2ith,ra2 ?0G of the -ortgage property an, rest ?0G 0se as -argin1 (/ient gives 11G
interest1
)(2 36erdraft
Over,raft is a/so a .ontin0o0s 7 short ter- /oan1 After 1 year, it .an 4e rene2e,1
Over,raft fa.i/ities are genera//y grante, to 40siness-en for e<pansion their 40siness
against se.0rities of sto.3 in tra,e, 'hares, +e4ent0res, )overn-ent Pro-issory notes,
!i<e, +eposit, &ife e Ins0ran.e Po/i.ies, )o/, an, go/, orna-ents et.1 If any person ta3es
/oan against !+R then he .an 2ith,ra2 at /east 80G of the !+R a-o0nt an, rest 60G of the
!+R a-o0nt is 3ept as -argin1 In this .ase ./ient gives interest 1;G1
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'(2(* !3#= FE#T7>ES
&oan -eans 2hen 4an3 give -oney, a..or,ing to the ne.essity of the ./ient1 In this pro.ess
4an3 give the 2ho/e ,e-an,a4/e a-o0nt to the ./ient at a ti-e1 On the other han,, ./ients
have to repay the prin.ip/e a-o0nt 2ith interest 2ithin a fi<e, perio, of the ti-e1
*() /lassification of !oan:
111 +e-an, &oan against Provi,ent !0n, for 'taff1
116 +e-an, &oan against )enera/ #B& D#o0se B0i/,ing &oanE1
a1 #B& for Resi,entia/ P0rpose1
41 #B& for (o--er.ia/ P0rpose1
.1 #B& for Apart-ent P0r.hase1
11; "er- &oan1
a1 'hort "er- D1 yearE1
41 %i, "er- DA4ove 1 year 4e/o2 ? yearE1
.1 &ong "er- DA4ove ? yearE1
11> +e-an, &oan against PP' DP04a/i Pension '.he-eE1
11? +e-an, &oan against "er- Basis1
11@ &oan against 'taff #B&1
119 &oan against 'e.0re,1
118 (ons0-er &oan '.he-e1
115 &ease !inan.e1
1110 Ban3 )0arantee1
1111 &oan against Others1
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'(2(0 ;escription of !oan:
)() ;emand !oan against Pro6ident Fund for Staff(
hen any person intereste, to ta3es /oan against Provi,ent !0n,1 It is -ain/y 0se for staff1
Ban3 ta3es 8G interest fro- the ./ient1 (/ient .an 2ith,ra2 ?0G a-o0nt of the Provi,ent
!0n, for ta3ing /oan an, other rest ?0G 3ept as a -argin1 Va/i,ity for this /oan is 10 year1
)(2 ;emand !oan against General 5! +5ouse uilding !oan-(
(/ient ta3es this /oan for .onstr0.tion of ho0se or 40ying of ne2 apart-ent1 Ban3 ta3es
1;G interest fro- the ./ient1 Va/i,ity for this /oan is 10 years1
)(8 Term !oan(
"er- /oan -ain/y 0se for p0r.hasing -a.hinery1 Ban3 3eeps /an, as -ortgage1 Interest
varies fro- 11G to 1>G1 #ere is in./0,ing 'hort "er- D1 yearE, %i, "er- DA4ove 1 year
4e/o2 ? yearE, &ong "er- DA4ove ? yearE1
)(9 ;emand !oan against PPS +Pu%ali Pension Scheme-(
Va/i,ity for the /oan is 1 year1 (/ient persona//y gives the )0arantee to pay the /oan1

)(' ;emand !oan against Term asis(
!o//o2ing +o.0-ent sho0/, 4e .o//e.te,=
Po2er of Attorney
(harge +o.0-ent1
&etter of (ontin0ity1
&etter of Agree-ent1
Pro-issory Note1
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)(: !oan against Staff 5!(
Ban3 ta3es @G interest fro- the ./ient1 'taff 3eeps &an, as -ortgage1 Ban3 .harges interest
after .o-p/eting -at0rity perio,1 P04a/i Ban3 provi,es a,van.es to the staffs for 40ying
%otor-.y./es an, Bi.y./es, (o-p0ter et.1 for 2e,,ing their sons or ,a0ghter et.1 It is
.a//e, 'taff &oan1 Ban3 provi,es this a,van.e of this se.tor 0n,er insta//-ents1
)(< !oan against Secured(
"his /oan is given for %a.hinery Insta//ation1 '0ppose any ./ient p0r.hase -a.hinery, for
insta//ing this -a.hinery ./ient ta3e 'e.0re, %ortgage /oan fro- 4an31 !or giving this /oan
Ban3 3eeps &an, as -ortgage fro- the ./ient1 Ban3 .harges interest 11G to 1>G1 "his type
of /oan -ain/y 0se in Proje.t &oan1 Proje.t in./0,es #B&, "er- &oan, or3ing (apita/ et.1
hen ./ient 2ant to 40i/, 0p in,0stry then this type of /oan is nee,e,1
)(* /onsumer !oan Scheme(
%ain/y 2hen any ./ient is intereste, for p0r.hase ho0seho/, thing, then (&' is provi,e,1 It
is -ain/y given to the tr0stee person, 4e.a0se no s0ffi.ient -ortgage property 3ept here1
"his /oan on/y provi,e, ,epen,s on re/ia4/e )0arantor1 Ban3 3eeps ?0G !+R an, 6?G
+o2n pay-ent1 )0arantor:s sa/ary -0st -ore than ./ient sa/ary1 If any ./ient ta3es /oan
highest 1 /a. then he has to pay this /oan in 6> insta//-ents1 hen any ./ients 2ant to ta3e
/oan fro- 6 /a. to ; /a. then he -0st s04-it "IN paper, origina/ infor-ation a4o0t sa/ary1
(/ient a/so p0r.hases a for- 4y 60"31 an, sign in the pro-issory note1 Agent:s gets ;G
.o--ission1 @0G of Agent:s .o--ission is pai, in the ti-e of /oan perio, an, rest >0G
pai, after re.overy the /oan1 In the ti-e of #o0se #o/, /oan a-o0nt is 1 /a. to ; /a. an, for
p0r.hasing (ar /oan a-o0nt is at /east 10 /a. or 1? /a.1 Va/i,ity for this /oan is -ain/y 6
year1
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)(0 !ease Finance(
+o.0-ent sho0/, 4e .o//e.te, in the ti-e of &ease !inan.e=
App/i.ation for &ease !inan.ing1
Persona/ net orth 'tate-ent of In,ivi,0a/IPartnerI+ire.tor1
&ease Agree-ent1
Ban3 3eeps A,van.e (he80e 2itho0t ,ate1
Un,erta3ing 4y &essee1
+e-an, pro-issory Note Dsing/eE1
+e-an, pro-issory Note DHointE1
&etter of (ontin0ity1
"r0st re.eipt1
(ertifi.ate of &ease E<e.0tion1
&etter of )0arantee1
A -en,e, &ease Agree-ent1
Ins0ran.eIBan3 )0arantee1
&an,, B0i/,ing, Property, !+R va/0ation .ertifi.ate1
Registration of invest-ent 4oar,1

#s "E?uipment lease financing& is my topic so, I ha6e discussed details in the ne@t part
IV
)(). an, Guarantee(
A .ontra.t of g0arantee has 4een ,efine, as Ba .ontra.t to perfor- the pro-ise or ,is.harge
the /ia4i/ity of a thir, person in .ase of his ,efa0/tC1 "he person giving the g0arantee is
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.a//e, the B'0retyC or B)0arantorC, the person on 2hose a..o0nt the g0arantee is given is
.a//e, the BPrin.ipa/ +e4torC an, the 4enefi.iary of the g0arantee is .a//e, the B(re,itorC1
Before giving a Ban3 )0arantee ./ient -0st pai, f0// a-o0nt or s0ffi.ient f0n, 3eeps in
Ban31 In .ase of E<port or I-port Ban3 )0arantee is so -0.h prefera4/e1 '0ppose an
i-porter get Ban3 )0arantee fro- the 4an31 hen i-porter re.eive his pro,0.t then Ban3
-0st pay -oney to the e<porter, if e<porter sho2ing )0arantee Paper1 If i-porter ,eposit
f0// /oan a4/e
a-o0nt to the Ban3, then 4an3 give the Origina/ )0arantee paper to the ./ient1 If the
e<porter sho2 )0arantee paper then Ban3 -0st /ia4/e to pay this -oney1 Ban3 )0arantee
tota//y safe pro.e,0re on the si,e of ./ient an, as 2e// as 4an31 Ban3 )0arantee is so -0.h
nee,e, in the ti-e of ,e/ivery of (ontainers1
Nor-a//y a Ban3 iss0es )0arantees for a perio, not e<.ee,ing one year at a varying
per.entage of -argin an, se.0rity ,eter-ine, on the 4asis of .0sto-er 4an3er re/ationship
an, nat0re of /ia4i/ity 0n,erta3en1 A 4an3 -ay a/so iss0e g0arantee for /onger ,0ration or a
.ontin0ing 4an3 g0arantee s04je.t to its se.0rity aspe.t 2e// ta3en .are of 1
"o2 types of Ban3 )0arantee are as fo//o2s=
Open= #ere is no fi<e, ti-e perio,1
!i<e,= #ere is fi<e, ti-e perio,1
)()) !oan against 3thers(
Ban3 3eeps ?G to 8G interest fro- the ./ient1 It is -ain/y 0se 2hen any ./ient is re/ate,
2ith E<port or I-port 40siness1 In the ti-e of E<port or I-port 4an3 pai, the a-o0nt on the
si,e of ./ient1
99
'(2(). /redit In6estigation factors:
Before san.tioning any .re,it to the Borro2er the .on.ern 4ran.h of that Ban3 first/y
investigate a4o0t the Borro2er, Proje.t, a..epta4i/ity, -ar3et sit0ation et.1 Vario0s types of
investigation are ,is.0sse, 4e/o2=
).() Purpose= P0rpose sho0/, 4e the pri-ary g0i,ing prin.ip/e 2hi.h is 3ept in vie21 "he
p0rpose for 2hi.h /en,ing is -a,e sho0/, 4e pro,0.tive as to ens0re ,efinite so0r.e of
repay-ent1 Ban3s ,is.o0rage for a,van.es for #ar,ing sti.3s or for spe.0/ative a.tivities1
"here are o4vio0s ris3s invo/ves there in a part fro- the anti-so.io nat0re of s0.h
transa.tion1 "he Ban3er -0st ./ose/y s.r0tiniAe the p0rpose is app/ie, 4y ,ay .on.ept of the
Borro2er a..or,ing/y1 P0rpose has ass0-e, a spe.ia/ signifi.an.e in the present Ban3ing1
).(2 Verification of the Primary Securities= henever a -oney/en,er /en,s -oney, he
-0st .onsi,er .aref0//y the .han.es of his 4eing repai, 4y the Borro2er an, is therefore not
nor-a//y .ontent to re/y on the o4/igation of the Borro2er a4ove 40t 2ants so-e tangi4/e
se.0rity fro- 2hi.h he .an o4tain repay-ent, in .ase the Borro2er is 0na4/e to -eet his
o4/igations, "he Ban3er a/so, -a3es a,van.es an, /oans, nat0ra//y 2ants to se.0re hi- 4y
so-e re/ia4/e se.0rity, 'e.0rity is .onsi,ere, as ins0ran.e to fa// 4a.3 0pon in .ase of
e-ergen.y1 Ban3ers -ay, rea/iAe it an,, rei-40rse the-se/ves if the 2e// .a/.0/ate, -ost
.ertain so0r.e of repay-ent 0ne<pe.te,/y fai/s1 An a,van.e is grante, near a goo, Ban3er
on its o2n -erits, that is to say 2ith ,0e regar, to its 'afety, &i80i,ity p0rpose et.1 an,
/oo3ing after into the .hara.ter, .apa.ity of the Borro2er an, not 4e.a0se the se.0rity is
goo,1
In the .ase of a,van.es against #ypothe.ation of sto.3, sto.3 state-ent is to 4e on.e or
t2i.e a -onth as per ter-s of san.tion, the .ertifi.ate at the foot of the state-ent sho0/, 4e
99
signe, 4y an A0thoriAe, person to operate the a..o0nt1 "hese state-ents are to 4e .are f0//y
verifie, to see the t0rnover of sto.3, the pri.e of the )oo,s, $0a/ity of the )oo,s et.1 "he
pri.e -0st 4e -a,e -ar3et pri.e or invoi.e pri.es 2hi.hever is /o2er1 A .opy of the
state-ent is 3ept at the 4ran.h an, the other one is sent to #ea, Offi.e I Regiona/ Offi.e1
).(8 Verification of the /ollateral Securities= (o//atera/ 'e.0rity is a se.0rity, 2hi.h is
i--ova4/e fro- one p/a.e to another1 A Bran.h %anager a/2ays sho0/, noti.e the
verifi.ation of the .o//atera/ se.0rities that a Ban3 san.tione, to the Borro2ers1 A %anager
sho0/, 4e verifie,=
I1 &o.ation1
II1 Possession1
III1 'it0ation1
IV1 Present %ar3et Va/0e1
V1 !or.e sa/e va/0e of the se.0rity as if the Ban3 .an sa/e the
se.0rity 2hen the 4orro2er fai/ to repay1
'(2()) Sanction of !oan:
hen a Bran.h %anager 2rites a /etter to a..epting a// ter-s an, .on,itions of /oan, it is
.a//e, /oan san.tion1 "he .on,itions, 2hi.h in./0,e, in the /oan san.tions these, are given
4e/o2=
aE &i-it1
4E Pri-ary 'e.0rities1
.E (o//atera/ 'e.0rities1
,E "he Rate of Interest1
eE E<piry ,ate1
fE Repay-ent1
gE +o.0-entation1
hE Others (on,ition1
99
'(2()2 Super6ision:
'0pervision is very i-portant in the aspe.t of /oan 'an.tioning an, +is40rsing pro.ess1
Be.a0se, if the Ban3 fai/e, to i,entify the rea/ 4orro2er on that ti-e there e<ists ris3 to
./assifie, this a,van.e1 As a res0/t, Ban3 2i// in.0r the tota/ /oss1 In this .onte<t, Bran.h
%anager 2i// e<er.ise his .o--onsense an, proper .ase in han,/ing a,van.es 4y the- or
any other appropriate a0thority1 "his has to, rea/iAe 4y the %anager that he is the .orner
stone of the Ban3 an, the overa// s0..ess of Ban3 ,epen,s to /arge e<tent 0pon #i-1 #is
tota/ 2or3 represents hi-se/f to the /o.a/ p04/i. an, the %anage-ent as a s0..essf0/ or
0ns0..essf0/ Bran.h %anager1 On/y he .an .ontro/ A,van.es H0,i.io0s/y to save the Ban3
fro- fa//ing /osses1
"he entire ne.essary ,o.0-ent have 4een ,0/y fai/e, in, sta-pe, an, .orre.t/y e<e.0te, 4y
the 4orro2er1 #e has to a/ert a4o0t the fo//o2ing things=
A proper a0thority .overing operation an, .onferring po2er to over,ra2 is he/, in
respe.t of A..o0nts of per-eate, 0pon 4y persons other than the Borro2ers
the-se/ves1
It sho0/, 4e seen 4y hi- that the A,van.e ,oes not .ontravene an, /o2 ,ire.te, 4y
Bang/a,esh1
Ban3 or the /en,ing po/i.y of the Ban31
'e.0rity is .orre.t/y va/0e, an, is easi/y sa/a4/e1
Proper storage an, .0sto,y are -a,e1
'tip0/ate, -argin is -aintaine,1
A,e80ate Ins0ran.e, 2here ne.essary, has 4een ta3en1
"here is 80i.3 t0rnover of sto.3s1
Operations of .0sto-ers a..o0nt1
99
"he Ba/an.e of a..o0nt re-ains very near or goes 4eyon, the ,ra2ing /i-it or there
is no goo, t0rnover1
"he Ba/an.e is stagnant1
(he80es ,ra2n 4y the party are ret0rne, for storage of f0n,1
Post-,ate .he80es are iss0e, 4y the Party1
(he80es ,ra2n 4y the Party are fre80ent/y .o0nter-an,e, finan.ia/ position1
'(2()8 >eco6ery:
A,van.e is s0.h 3in, of arrange-ent that its ./ients are repaya4/e this either on ,e-an, or
at the e<piry of fi<e, perio, or as per repay-ent s.he,0/e agree, 0pon 2hi/e granting the
fa.i/ities1 If a /oan is repaya4/e on insta//-ent is not repai, on ,0e ,ate1 Over,raft an,
(re,it are /ega//y repaya4/e on +e-an,, a/tho0gh the 4an3 se/,o- e<er.ises the right 40t in
.ertain (0sto-ers1 In the .ase, 2hen /oan is repaya4/e in insta//-ent, entire /oan 0s0a//y
4e.o-es i--e,iate/y re.overa4/e of at the option of the Ban31
'(2()9 /lassification of !oan:
"here are t2o ./assifi.ation of /oan1 "hese are as fo//o2s=
)9() =ormal !oan: "his is .an re.overy 4y nor-a/ pro.e,0re1
)9(2 /lassified !oan: (/assifie, &oan a/so ,ivi,e, into three parts1 "hese are as fo//o2s=
'04-'tan,ar, DIf /oan e<piry ,ate .rosses @ yearsE1
+o04tf0/ DIf /oan e<piry ,ate .rosses 5 yearsE1
Ba,I&oss DIf /oan e<piry ,ate .rosses 16 yearsE1
99
hen any ./assifie, /oan fa// in '04-'tan,ar, or +o04tf0/, here is possi4i/ity to re.overy
/oan 40t 2hen /oan fa// in Ba, or &oss then it is so to0gh to re.over for the 4an3er1 'o 4an3
sho0/, o4serve a// ti-e so that no /oan .an 4e transferre, into Ba, &oan1
'(2()' Salient features of !oans A #d6ances:
11 P04a/i Ban3 &i-ite, offers .re,it fa.i/ities to a/-ost a// the se.tors of .o--er.ia/
a.tivities in Bang/a,esh1
61 It offers .re,it fa.i/ities to in,ivi,0a/s, 40siness -en, s-a// an, /arge 40siness
ho0ses, tra,ers, -an0fa.t0rers, .orporate 4o,ies et.1
;1 &oan fa.i/ities are a/so provi,e, to the r0ra/ peop/e for agri.0/t0ra/ pro,0.tion1
>1 &oan pri.ing is .heap an, reasona4/e1
?1 "he Ban3 is ens0ring 80i.3 ,isposa/ of /oan proposa/1
@1 (re,it fa.i/ities are e<ten,e, as per g0i,e/ines of Bang/a,esh Ban3 an, operationa/
pro.e,0res of the Ban31
'(2(): Ta%le sho1ing some information related 1ith loan A ad6ance:
Particulars 2..* 2..0
"ota/ &oans 7 A,van.es
?0,?>5,1@9,106 @1,988,1?6,?8?
A-o0nt of ./assifie, /oans 7 a,van.es
6,?1>,50@,000 6,615,;1>,000
Provision 3ept against ./assifie, /oans 7
a,van.es
@9@,@?1,@61 @89,990,8@?
&oan ,eposit ratio
8911@G 8>1@6G
Ratio of ./assifie, /oans to tota/ /oans 7
a,van.es
>158G ;1?5G
'o0r.e= Ann0a/ report of PB&1
Ta%le-8
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Chap!"#3
L(!"a4"! "!'(!) *+ !?4(p2!& -!a/! +(&a&8(&,
&ease finan.ing 0n,er /oans 7 a,van.es is no2 very pop0/ar for 2hi.h .0sto-ers are
intereste,1 A/tho0gh &easing is often tho0ght as a -o,ern ,ays finan.ing te.hni80e,
in,i.ators are that /easing transa.tion too3 p/a.e aro0n, 6000 41. 2hen '0-erian far-er
/ease, too/s fro- te-p/e priest 1One 2ay of o4taining the 0se of e80ip-ents is to 40y
the- ,40t an a/ternative is to /ease the-1Prior to 15?0s,/easing genera//y 2as asso.iate,
2ith rea/ estate M&an,,7 40i/,ings1 "o,ay , ho2ever,it is possi4/e to /ease virt0a//y any 3in,
of fi<e, asset, 7 in 600> -ore than 6?G of a// ne2 .apita/ e80ip-ent a.80ire, 4y
40sinesses 2as /ease,1 No2 it is s0..esse, in 100G1
&a2ren.e 7 )it-an 'ays that,
BA lease is an agree-ent 2here4y the /essor .onveys to the /essee in ret0rn for a pay-ent or
series of pay-ents the right to 0se an asset for an agree, perio, of ti-e1 &ease is a .ontra.t
4et2een a /essor an, /essee1::
"he ter- /essee is prono0n.e, B&ess-eeC 7 /essor is prono0n.e, B/ess-orC
!essee: "he re.eiver of the servi.es of the asset 0n,er a /ease .ontra.t1
!essor: "he o2ner of assets that they are 4eing /ease,1 E<a-p/e= Ban31
99
'(8 !ease Financing:
'(8() ;efinition of leasing:
"he pro.ess 4y 2hi.h a fir- .an o4tain the 0se of .ertain fi<e, assets for 2hi.h it -0st
-a3e a series of .ontra.t0a/, perio,i., ta<-,e,0.ti4/e pay-ents1 A lease is an agree-ent
2here4y the /essor .onveys to the /essee in ret0rn for a pay-ent or series of pay-ents the
right to 0se an asset for an agree, perio, of ti-e1 /ease is a .ontra.t 4et2een a /essor an,
/essee1
'(8(2 E?uipment !easing:
+efinition= O4taining the 0se of -a.hinery, vehi./es or other e80ip-ent on a renta/ 4asis1
"his avoi,s the nee, to invest .apita/ in e80ip-ent1 O2nership rests in the han,s of the
finan.ia/ instit0tion or /easing .o-pany, 2hi/e the 40siness has the a.t0a/ 0se of it1 =
'(8(8 Types of lease:
"here are t2o 4asi. types of /eases, s0.h as:-
11 Operating /eases1
61 !inan.ia/ /eases1
8() 3perating leases: Operating /ease is a .an.e/a4/e .ontra.t0a/ arrange-ent 2here4y the
/essee agrees to -a3e perio,i. pay-ents to the /essor, often for ? or fe2er years, to o4tain
an asset:s servi.esN genera//y, the tota/ pay-ents over the ter- of the /ease are /ess then
/essor:s initia/ .ost of the /ease, asset1
8(2 Financial leases: A finan.ia/ /ease is a /ong ter- /ease then an operating /ease that is no
.an.e/a4/e an, o4/igate the /essee to -a3e pay-ents for the 0se of an asset over a
pre,efine, perio, of ti-e1 !inan.ia/ /eases are .o--on/y 0se, for /easing /an,, 40i/,ings
99
an, /arge pie.es of e80ip-ent1 It is si-i/ar to /ong ter- ,e4t1 "he /ease transfers o2nership
of the property to the /essee 4y the en, of the /ease ter-1

'(8(9 #d6antages of lease financing:
"he .o--on/y .ite, a,vantages of /easing as fo//o2s=
11 In a /ease arrange-ent, the fir- -ay avoi, the .ost of o4so/es.en.e if the /essor fai/s to
anti.ipate a..0rate/y the o4so/es.en.e of assets an, sets the /ess pay-ent too /o21
61 A /essee avoi,s -any of the restri.tive .ovenants that are nor-a//y in./0,e, as part of a
/ong ter- /oan1
;1 "his .an 4e a,vantageo0s for a fir- that is short of 2or3ing .apita/ or in a /i80i,ity
4in,1
>1 &easing a//o2 the /essee, in effe.t, to ,epre.iate /an,, 2hi.h is prohi4ite, if the /an,
2ere p0r.hase,1
?1 &easing provi,es 100 per.ent finan.ing1
@1 hen a fir- 4e.o-e 4an3r0pt or is reorganiAe,, the -a<i-0- ./ai- of /essors against
the .orporation ; years of /ease pay-ents, an, the /essor of .o0rse gets the asset 4a.31
'(8(' ;isad6antages of lease financing:
"he .o--on/y .ite, ,isa,vantages of /easing as fo//o2s=
11 A /ease ,oes not have a state, interest .ost1 "h0s, in -any /eases the ret0rn to the /essor
is 80ite high, so the fir- -ight 4e 4etter off 4orro2ing to p0r.hase the asset1
61 At the en, of the ter- of the /ease agree-ent, the sa/vage va/ve of an asset, if any, is
rea/iAe, 4y the /essor1 If the /essee ha, p0r.hase, the asset, it .o0/, have ./ai-e, its
sa/vage va/0e1
;1 Un,er a /ease, the /essee is genera//y prohi4ite, fro- -a3ing i-prove-ents on the
property or asset 2itho0t the approva/ of the /essor1
>1 If a /essee /eases an asset that s04se80ent/y 4e.o-es o4so/ete, it sti// -0st -a3e /ease
pay-ents over the re-aining ter- of the /ease1 "his is tr0e even if the asset is 0n0sa4/e1
'(8(: #rticle of e?uipment lease financing:
(ash-starve, 40sinesses -ay 2ant to .onsi,er /easing, rather than 40ying, e80ip-ent1
&easing affor,s yo0 a..ess to -any types of e80ip-ent= .o-p0ters, .opy -a.hines, fa<
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?-a.hines, tr0.3s, an, -ore1 An, 2hi/e /easing ,oesnFt 4ring .ash in the ,oor, it ,oes
re,0.e the a-o0nt of .ash yo0F// nee, to raise for yo0r 40siness1
hen yo0 /ease e80ip-ent, a -an0fa.t0rer, ,ea/er, or /en,er either 40ys or a/rea,y o2ns
the e80ip-ent yo0 2ant1 In e<.hange, yo0 -a3e -onth/y pay-ents to the o2ner D/essorE1
"he -onth/y pay-ent str0.t0re a//o2s yo0 to treat the pay-ents as ta<-,e,0.ti4/e 40siness
e<penses1
&easing a/so -a3es it easier to 3eep pa.e 2ith te.hno/ogy1 "his is espe.ia//y i-portant if
yo0r 40siness re/ies 0pon .0tting-e,ge te.hno/ogy s0.h as the /atest .o-p0ters,
.o--0ni.ation ,evi.es, or other e80ip-ent1 A series of short-ter- /eases 2i// .ost yo0 /ess
than 40ying ne2 e80ip-ent every year or t2o1 'o-e /eases even have year/y .o-p0ter
0pgra,es 40i/t into the- -- e/i-inating the ,iffi.0/t ,e.ision of 2hether yo0 .an affor, to
0pgra,e1 If yo0 nee, e80ip-ent right a2ay, /eases are approve, -0.h -ore 80i.3/y than
/oans, an, invo/ve /ess paper2or3 an, -ore re/a<e, .re,it re80ire-ents1 %any e80ip-ent
ven,ors provi,e /ease finan.ing, as ,o a n0-4er of 4an3s1 !or ear/y-stage 40sinesses,
e80ip-ent /ease finan.ing is -ore easi/y o4taine, fro- a ven,or than fro- a 4an31
U/ti-ate/y, /easing e80ip-ent 2i// /i3e/y prove -ore .ost/y than 40ying, 40t if .ash f/o2 is
an i-portant iss0e, then /easing is an attra.tive a/ternative1
hen /easing, 4e s0re to .onsi,er the fo//o2ing points=
>esidual Value - "he re-aining D-ar3etE va/0e of the e80ip-ent at the en, of the
/ease ter-1
Security ;eposit - An a-o0nt pai, at the 4eginning of the /ease that is he/, 4y the
/essor 0nti/ the satisfa.tory pay-ent of a// a-o0nts ,0e 0n,er the /ease ter-s, at
2hi.h ti-e the se.0rity ,eposit a-o0nt is ret0rne, to the /essee1
!ease term- "he .o--en.e-ent of the /ease ter- is the ,ate fro- 2hi.h the /essee
is entit/e, to e<er.ise its right to 0se the /ease, asset1 "he ter- of the /ease is
genera//y not greater than 9?G of the e80ip-entFs anti.ipate, 0sef0/ /ife1
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Grace period- "he perio, 4et2een /oan given 4y the Ban3 7 -onth/y insta//-ent
given 4y the /essee is .a//e, gra.e perio,1 !or gra.e perio, interest -0st have to 4e
pai, 4y the /essee1
'(8(< !ease Finance of Pu%ali an,:
By 0sing &ease !inan.e o2nership is not transfer1 #ere Ban3 is the o2ner an, ./ient 0se the
property an, pays his interest1 Interest rate is 1>19?G -ain/y for ? years1 After a perio,
./ient p0r.hase the property 4y /0-p s0-p D-ain/y 1?GE a-o0nt1 In the ti-e of &ease
!inan.e ./ient is free fro- ta<1 "a< is pai, 4y Ban31 Ban3 3eeps s0pervision an, -onitoring
Da.80isition .ostE fee 1G 2hi.h is not ret0rna4/e an, 1G 3eeps for ris3 f0n, on a.80isition
.ost1 If ./ient is fai/0re to pay insta//-ent -oney then Ban3 2i// 3eep 1>G as +efa0/t
(harge1 If ./ient is fai/0re to pay insta//-ent for three ti-es then Ban3 2i// ta3e appropriate
a.tion1 Negotia4/e Instr0-ent A.t 1881, one year p0nish-ent or 4an3 .an .harge trip/e
a-o0nt1 (/ient -0st ref0n, -oney 2ithin 1? ,ays other2ise he 2i// p0nish 2ithin one
-onth1
&ease Pro,0.t 7 /i-it of the /oan a4/e a-o0nt=
(ar1 %i.ro40s, "r0.3, %ini40s, (overe, Van highest ? years1
%e,i.a/ E80ip-ent, )enerator, &ift highest > years1
E/e.troni. E80ip-ent highest 6 to > years1
(apita/ %a.hinery Di-porte,I/o.a/E highest ? years1

'(8(* !ease finance statement of Pu%ali an, !td:
Particulars 2..* +amount in T,- 2..0 +amount in T,-
&ease renta/ re.eiva4/e 8;,560,?;; 8>1,0>5,855
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2ithin 1 year
&ease renta/ re.eiva4/e
2ithin ? year
;,0>1,;68,?;? 6,?9;,156,?1@
&ease renta/ re.eiva4/e after
? year
;,;5>,?8> 6,>>6,>19
"ota/ &ease renta/ re.eiva4/e ;,168,@>;,@?6 ;,>1@,@8>,8;6
Unearne, interest re.eiva4/e 800,9>6,889 9;5,11?,58@
Net &ease finan.e 6,;69,500,9@? 6,@99,?@8,8>@
'o0r.e= Ann0a/ report 6008 7 6005
Ta%le-9
/omment: #ere 2e see the tota/ a-o0nt of /ease finan.ing 6008 an, 6005 of P04a/i Ban3
&t,, "he a// a-o0nt are in.rease, at 6005 than 60081 that -eans this Ban3s &ease finan.ing
servi.es is goo,1
'(8(0 The Total Procedure of E?uipment lease Financing of Pu%ali an, !td:-
0() Step ): At first, &essee (o-pany 2i// re80est for /oan to %otijhee/ Bran.h of P04a/i
Ban3 &t,1 In this re80est /etter, state-ent of 4oar, reso/0tion an, state-ent of passe,
reso/0tion -0st have to 4e en./ose, 2ith this re80est /etter1
"hen, &essee (o-pany has to app/y for e80ip-ent /ease finan.e1 &ease app/i.ation for- is
given 4e/o2=
>.1.1. L!a/! App-(8a(*& F*"2

Th! Ma&a,!"
Pubali Bank Ltd.
99
Pi.t0re
Internship Report for IBA, Rajshahi University Page- ;@
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Branceh
.
S453 App-(8a(*& +*"2 +*" p"*84"!2!& *+ 8ap(a- 2a8h(&!"6@!?4(p2!& 4&.!"
-!a/! a""a&,!2!&/.
Dear sir,
I / We intend to avail of lease financing from Pubali Bank Ltd, Motiheel cor!orate
Brance. I / We furnish the follo"ing !articulars # bind m$self / ourselves to furnish
$ou "ith an$ other information # com!l$ "ith the re%uired formalities "hich $ou
ma$ need an$ time.
=1. I& 8a/! *+ C*2pa&63
&. 'ame of (om!an$...
B. Legal status )Individual !artnershi!, Limited com!an$*
(. +ffice address "ith !hone no.
D. Mill / ,actor$ address "ith !hone no
)Memorandum # articles of association along "ith certificate of incor!oration
are to be attached*
-. Date of incor!oration ..Date of commencement of Business
,. .hare ca!ital
i. &uthori/ed ca!ital0 12dividend into .share of 12
each
ii. Paid u! ca!ital0 12.
=2. Pa"(84-a"/ *+ .("!8*"/ @ pa"&!"/ @ p"*p"(!*"/3
'ame Position &ge 3esidential address #
Permanent address
"ith tele!hone number
.hareholder
,orm L,456
99
A-o0nt
G
=3. I& 8a/! *+ (&.('(.4a- @ P"*p"(!*" *+ -*a&3
'ame 0 ........
,ather / 7usband name 0 ............
Mother name 0 .
Date of birth 0 .
Marital status 0............. .e80
...
3esidential address 0 .............................
........................................
Permanent address 0 .
+ccu!ation 0 .......... Monthl$ income0
Pass!ort no )If an$* 0 ..... Issued on0 ......... Issued b$0
Income from other source 0 .ource...... Monthl$ income.
1ele!hone 0 +ffice3esidence..Mobile..
=4. I& 8a/! *+ pa"&!"/h(p +("2Ap-!a/! aa8h 8*p6 *+ "!,(/!"!. pa"&!"/h(p
.!!.B
'ame of
the
!artners
,ather9s / 7usband9s name
# Mother9s name
&ge &ddress "ith tele!hone number
=5. Date of establishment )In case of individual / !artnershi! firm*0 ..
99
Resi,entia/
Per-anent
=7. 1rade license no..Date..:alidit$.....
=:. 1I'0 ....:&1 3egi. 'o. if
an$
=C. N! )*"h *+ P"*p"(!*"/ @ Pa"&!"/ @ D("!8*"/ *+ h! 8*2pa&6 Aa/ p!" LF#
=2B
'ame of the Pro!rietor /
Partner / Director
1otal value of
asset
1otal value of
liabilit$
Personal net
"orth
=>. &ccount number # Date of o!ening0
1=. Brief descri!tion of e8isting business0 ......
11. A&&4a- 4"&*'!" *+ h! A88*4&/ @ B4/(&!//3
12. D!/8"(p(*& *+ !?4(p2!& p"*p*/!. 4&.!" h(/ -!a/!3
Descri!tion of
e%ui!ment "ith
countr$ of origin
'o. of unit ;nit Price 1otal Price 3emark
13. Na2! 9 a.."!// *+ /4pp-(!" 9 2*.! *+ .!-('!"63
99
In !( In "*
'ame # address of
su!!lier
Deliver$
.chedule
Mode of deliver$ 3emarks
)Details in se!arate sheet ma$ be furnished if necessar$*

14. Pur!ose of "hich lease is re%uired0.....
15. Place of installation of -%ui!ment/(a!ital Machiner$
17. P"*84"!2!& 8*/ *+ E?4(p2!&
(#, (ost/Procurement (ost 12
)&s !er %uotation / Indent / Performa Invoice*
Less0 Do"n Pa$ment, if an$ 12 .......
.ub 1otal 12 ....
&dd0 Dut$ / :&1 / +ther (ost etc. 12 .....
T*a- P"*84"!2!& C*/ T% ...........
1:. &c%uisition (ost/Lease ,inance 12 ..............
1C. -8!ected Data of Lease -8ecution0 .
1>. Lease 1erms ........... Months e8cluding ..... months of grace
!eriod.
2=. Date of 6
st
3ental to be !aid to the Bank .
21. Pa"(84-a"/ *+ ,4a"a&*" A/B; (+ a&63
'ame,
,ather9s/7usband9s
name# Mother9s
3esidential and
Permanent
&ddress
&ge Profession 'et
"orth
3elationshi!
"ith
&!!licant
)Details of <uarantor )s* to be furnished in se!arate sheet in above format along
"ith 'et "orth .tatement*
22. D!/8"(p(*& a&. T6p! *+ /!84"(6 *++!"!. 56 h! App-(8a&
99
Internship Report for IBA, Rajshahi University Page- >0
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,ull Descri!tion of .ecurities +"ner :alue of .ecurit$ 3emarks
23. L(a5(-(6 P*/((*& *+ h! App-(8a(*& )(h P45a-( Ba&1 L.. DDD..B"a&8h
A/ *& DDDDDDDDDDDDDDDDDD
'ature
of Limit
&mount
of Limit
:alidit$
of Limit
+utstanding
)in crore*
1$!e and
:alue of
(ollateral
.ecurities
&nnul
1urn
+ver
)in(rore*
(lassification
.tatus
)If re%uired the liabilit$ !osition ma$ be furnished in se!arate sheet.*
24. L(a5(-(6 P*/((*& *+ h! /(/!" 8*&8!"& @ G"*4p *+ h! App-(8a(*& )(h
P45a-( Ba&1 L..;....................DDDD.B"a&8h a/ *&DDD.....................DD
'ame
of
Borro"
er
'ature/
1$!e of
&ccount
&mo
unt
of
Limit
:alidi
t$ of
Limit
+utstan
ding )in
crore*
1$!e and
:alue of
(ollateral
.ecurities
&nnul
1urn +ver
)in crore*
(lassifica
tion
.tatus
)Details of liabilities of sister concern of &!!lication "ith the Branch be furnished in
se!arate sheet*
99
25. L(a5(-(6 P*/((*& *+ h! App-(8a(*& )(h *h!" 5"a&8h!/ *+ P45a-( Ba&1
L.. AI+ a&6B a/ *& DDDDDDDDDDDDDDDD.
'ame of
Brunch
'ature
of Limit
&mount
of Limit
:alidit$
of Limit
+utstanding
)in crore*
1$!e and
:alue of
(ollateral
.ecurities
(lassification
.tatus
)Details of &!!lication "ith other Branches of Pubali Bank Ltd. be furnished in
se!arate sheet*
27. L(a5(-(6 p*/((*& *+ h! App-(8a(*& a&. (/ /(/!" 8*&8!"&@G"*4p )(h
*h!" 5a&1/
'ame of
borro"ing
(oncern /
<rou!
'ame of
Bank
Branch
'ature
of
Limit
&mount of
Limit
:alidit$
of Limit
+utstan
ding )in
crore*
(lassificat
ion .tatus
)Details of &!!lication "ith other Branches of Pubali Bank Ltd. Be enclosed in above
format.*
2:. D!a(-/ *+ F(&a&8(a- C*22(2!& )(h *h!" L!a/(&, C*2pa&(!/ @ Ba&1
4&.!" -!a/! F(&a&8!DD
'ame of the Leasing
(om!an$ / Bank
1$!e of &sst
Leased
:alue of
Leased &sset
Lease
1erm
&mount of
monthl$
99
rental
I/We do hereb$ declare that the !articulars furnished above are true and correct to
the best of m$/our kno"ledge. I/We authori/e $ou to obtain and / or verif$ from an$
source "hatever information regarding m$/our credit "orthiness.
=ours faithfull$
AS!a- 9 S(,&a4"! *+ h! App-(8a(*&B
Na2!3
A.."!//3
Da!3
In .ase of app/i.ation for- other re/ate, ,o.0-ents of ea.h o2ner of /essee .o1 -0st 4e
en./ose, s0.h as=
aE Persona/ net 2orth state-ent 0f the proprietorIpartnerI,ire.tor
4E Nationa/ I+ .ar,1
.E A .opy of 80otation of e80ip-ent 2hi.h in./0,e Bran,, .o/or, pri.e per 0nit et.1 7
It 2i// 4e .o//e.te, fro- se//er1
,E !or- M LV1
eE 'tate-ent of Ret0rn of a//ot-ent a..or,ing to .o-panies a.t 155> D'e.1- 1?1E !ro-
Hoint sto.3 .o-pany1
fE Others Ban3 /ia4i/ity position1
gE 'ta-p of 60 "a3a a..or,ing to Registrar 4y Hoint 'to.3 (o-pany1
hE !or- LII1
iE Parti.0/ars of +ire.tors %anagers 7 o2ners a..or,ing to .o-panies A.t 155>1
Registrar of Hoint sto.3 .o-pany1
jE 'tate-ent of in.o-e ta<1
99
Internship Report for IBA, Rajshahi University Page- >;
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3E +o.0-ent of +e-an, +eposit transa.tion of other Ban3s s0.h as Uttara Ban3,
#'B( et.1
/E Ne<t, %otijhee/ 4ran.h 2i// s04-it an app/i.ation to the /ease finan.e ,ivision of
#ea, Offi.e1 "he s04je.t 2i// 4e BIn80iry !or- (IB IA for on2ar, s04-ission to
Bang/a,esh 4an3 for (IB (/earan.eI ./ean report AI( /essee .o &t,1
0()(2 7nder )#:
In80iry for-= (IB -1A
D!or in,ivi,0a/E
Infor-ation of In80iry for- (IB-1A=
1E Na-e of the 4an3
6E Na-e of the Bran.h
;E Un,er the ,istri.t of =
>E Bran.h (o,e No=
?E Referen.e no of 4ran.h =
@E Referen.e no of #ea, Offi.e =
9E Borro2er .o,e D If avai/a4/eE=
8E Na-e of the Borro2er in f0// =-
5E A44reviate, na-e D in .ase of in,ivi,0a/ E=
10E !ather:s na-e D In .ase of in,ivi,0a/E
11E %other:s Na-e D In .ase of in,ivi,0a/E
16E #0s4an,:s Na-e D In .ase of in,ivi,0a/E
1;E A,,ress =-
1>E Per-anent =
1?E B0siness =
1@E !a.tory =
19E "e/ephone No=
18E "IN no =
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7nder 2#:
In80iry !or-= (IB -6A
DO2ners infor-ation if 4orro2er is instit0tionE
Infor-ation:s are given 4e//o2=-
1E Na-e of the 4an3=
6E Na-e of the Bran.h=
;E Un,er the ,istri.t of =
>E Bran.h (o,e No=
?E Referen.e no of 4ran.h =
@E Referen.e no of #ea, Offi.e =
9E Borro2er .o,e D If avai/a4/eE=
8E !0// na-e of Borro2er =
5E !0// na-e of o2ner =
10E A44reviate, na-e of o2ner =
11E !ather:s na-e =
16E %other:s Na-e=
1;E #0s4an,:s Na-e D In .ase of in,ivi,0a/E
1>E A,,ress =-
aE Per-anent =
4E B0siness =
.E !a.tory
1?E 'tat0s of o2ner =
=e@t, Promise letter
After that en80iry for-, /essee .o 2i// s04-it a Bpro-ise /etterC a..or,ing to anne<0re 3aC
to the %otijhee/ .orporate Bran.h of PB&1 "he s04je.t 2i// 4e Binfor-ation a4o0t
Borro2erI instit0tions o2nershipC1 At present, 2hether the instit0tion enjoye, any other
/oan fa.i/ities that -0st 4e ,is./ose, in the pro-ise /etter1
O En80iry -0st have to 4e -a,e in the na-e of every o2ner of the instit0tionI /essee .o1 7
every o2ner -0st -a3e a Bpro-ise /etterC to the Bran.h
99
Internship Report for IBA, Rajshahi University Page- >?
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0(2 Step 2: Proposa/ for san.tion /etter to hea, offi.e of PB& 2hi.h 2i// 4e sent 4y
%otijhee/ (orporate Bran.h of PB&1
Infor-ation:s of this /etter are given 4e/o2=
a1 Na-e of propose, Borro2ing=
41 Na-e of +ire.tors 7 'hareho/,ers=
.1 Nat0re of B0siness=
,1 Ite- of pro,0.t=
e1 &i-it of fa.i/ity=
f1 &i-it Approa.h for=
g1 &ease finan.e a-o0nt=
h1 +es.ription of e80ip-ent=
i1 A..o0nt position=
j1 'e.0rity=
31 'pe.ia/ .onsi,eration=
/1 A..o0nt position as per #O instr0.tion=
-1 Bran.h Position 7 negative /ist=
n1 Re.o--en,ation=
"he f/o2ing ,o.0-ent 7 for- -0st 4e en./ose, 2ith this /etterN
i1 Pri.e verifi.ation report
ii1 (re,it proposa/ an, approva/ for-
0(8 Step 8: 'an.tion /etter
In this step, 2e .an sho2 an e<a-p/e for o0r .onvenien.e of san.tion /etter, s0.h as=
aEE<a-p/e of e80ip-ent /ease finan.ingN Virgo phar-a.e0ti.a/s /t, 2ant to /ease an
e80ip-ent D .argo tr0.3E .ost t3 @8,000,00 a..or,ing to 80otation1 In that .ase, the .o
agrees to pay ,o2n pay-ent "31;,@0,000 or 60G of "3@8,000,001/ease ter- is ? year1 in
that .ase ,
#ea, offi.e of P04a/i Ban3 2i// s04-it the san.tion /etter to the 4ran.h1 I-portant ter-s
an, .on,ition -entione, 4y #O in the san.tion /etter are given 4e/o2=
99
Internship Report for IBA, Rajshahi University Page- >@
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At first,
Bran.h has to o4tain the fo//o2ing papers 4efore ,is40rse-ent of /ease f0n,1
I1 Va/i, tra,e /i.ense
II1 (R) 2ith proje.te, BI'
Other re/ate, .on,itions are given 4e/o2=
.)- Na-e 7 a,,ress of /essee= Virgo phar-a.e0ti.a/s /t,1
2(.- /ease finan.e fa.i/ity= "3 ?>,>0,000
2()- Nat0re of fa.i/ity= /ease finan.e
2(2- Na-e of ite-s= An e80ip-ent D.argo tr0.3E
'& +es.ription of
e80ip-ent
Reg0/ation
$ty 0nit .ost "ota/ .ost '0pp/ier
1 .argo "r0.3 1 "3@800000 "3@800000 "A"A
%otors /t,

2(8- P0rpose= to a.80ire e80ip-ent D.argo tr0.3E
2(9- Pro.0re-ent .ost= "3 @8/a.
2('- +o2n Pay-ent= "he /essee 2i// have to ,eposit "3 1;1@0 /a. on/y to PB& %otijhee/
Bran.h, +ha3a as ,o2n Pay-ent1
2(:- A.80isition .ost= Pro.0re-ent .ost M ,o2n pay-ent1 Or D"31@8/a. M "311;1@0E
K"31?>1>0/a.
2(<- &ease finan.e a-o0nt= "31?>1>0/a.
2(*- &ease perio,= '0ppose @0 -onths fro- the ,ate of .reation of /ease1
2(0- )ra.e perio,= ni/
2().- Interest rate= P1>19?G per ann0-
2())- %onth/y /ease renta/= "3 16890> on/y
99
2()2- %o,e of pay-ent= By @0 e80a/ -onth/y /ease renta/s ea.h for "3 16890>IK on/y of
4a/an.e if any in /0- s0- as a-ortiAation sheet en./ose, at anne<0re -1
2()8- &ease ,eposit D1 -onth renta/E= "3 16890>IK on/y to 4e pai, on the ,ate of e<e.0tion
of the /ease1 "he /ease ,eposit 2i// 4e ref0n,e, to the /essee after f0// pay-ent of -onth/y
/ease renta/ 7 2i// 4ear no interest1
2()9- +ate of first pay-ent= On 1?
th
I6?
th
,ay of 1
st
-onth fro- the ,ate of .reation of /ease1
2()'- Resi,0a/ va/0e= After f0// a,j0st-ent of Ban3s ,0e I -onth/y /ease renta/s 4y the
/essee the o2nership of /ease asset -ay 4e transferre, to the /essee, after pay-ent of
resi,0a/ va/0e of "3 69,600IK on/y to the 4an3 4y the /essee1
2():- "ransfer fee= "he /essee 2i// have to pay "3 1000I- on/y to PB&, %otijhee/ Bran.h,
+ha3a at the ti-e of transfer of o2nership of the /ease asset fro- 4an3 to /essee1 (ost for
transfer for .hange of o2nership of the /ease asset 2i// 4e 4orne 4y /essee1
2()<- Pre--at0re a,j0st-ent= In .ase of pre--at0re a,j0st-ent the /essee -0st pay
stip0/ate, /oss va/0e, ,e/aye, perio, interest Dif anyE, Resi,0a/ va/0e, transfer fee et.1 2ith
prior approva/ fro- /ease finan.ing ,ivision #O, +ha3a1
8(.- 'e.0rity=
aE @0 n0-4ers post,ate, signe, .he80es Dother 4an3s .he80es are prefera4/eE ea.h for
"3 16890> on/y in favor of p04a/i 4an3 /t,1 Virgo /t,1 as -onth/y renta/s against the
.aptione, /ease finan.e to 4e ,eposite, 4y the /essee in a,van.e 2ith the 4ran.h at
the ti-e of /ease e<e.0tion1 (he80es iss0e, on any /oan a..o0nt1 e1g .., o+1 'O+
are not a..epta4/e1 A// .he80es -0st 4e s04-itte, thro0gh a for2ar,ing /etter
,es.ri4ing the parti.0/ars of the .he80es signe, 4y the a0thoriAe, person of the .o
s0pporte, 4y the .o:s 4oar, reso/0tion a/ong 2ith atten,an.e ,0/y atteste, 4y the
.hair-an1
4E &ease ,eposit= 1 -onth /ease renta/ for "3 16890>1
.E Persona/ g0arantee of the .hair-an 7 a// the ,ire.tors of &essee (o-pany1
,E "he e80ip-ent 2i// 4e registere, in the sa-e of p04a/i 4an3 /t,1 %otijhee/ Bran.h,
+ha3a1 a..o0nt /essee .o-pany /t,1 2ith Bang/a,esh re/ate, a0thority 7 the 4an3
offi.ia/ 2i// -a3e s0.h registration 0n,er ,ire.t s0pervision of the Bran.h -anager1
Registration of the e80ip-ent 7 rene2a/ of registration 2i// 4e -a,e at the .ost of
99
the /essee1 "he /essee 2i// have to ta3e ./earan.e fro- the 4an3 4ran.h 4efore
rene2a/ of ,o.0-ent of the /ease, e80ip-ent1 "a< ta3en -0st 4e retaine, at the
4ran.h for re.or,1
9(.- E<e.0tion of +o.0-ents=
9()- "he fo//o2ing +o.0-ents are to 4e e<e.0te, 4y the 4ran.h 4efore ,is40rse-ent of
f0n,N
A1 +e-an, pro-issory note Dsing/eE in &!1 - 09 to 4e e<e.0te, or reven0e sta-p of
re80isite va/0e1
B1 +e-an, pro-issory note DHointE in &! M 08 to 4e e<e.0te, or reven0e sta-p of
re80isite va/0e1
(1 &etter of .ontin0ity in &! M 05 to 4e iss0e, 4y the /essee1
+1 Persona/ )0arantee of the (hair-an 7 a// the +ire.tor of the /essee .o in for- &!-
16 on a,hesive sta-p of re80isite va/0e1
9(2- "he fo//o2ing ,o.0-ents are to 4e o4taine, 4y the 4ran.h=
A1 &ease agree-ent in 6! -0? to 4e e<e.0te, on non- j0,i.ia/ sta-p paper of re80isite
va/0e1 A// ,etai/s of the e80ip-ent -0st 4e -entione, in the /ease agree-ent1 "he
/ease agree-ent 2i// 4e re80ire, to 4e notariAe, 4y the en/iste, B&A atta.he, 2ith
the 4ran.h1
B1 (ertifi.ate of /ease e<e.0tion in &! M 11 to 4e iss0e, 4y the /essee in their /etter hea,
4eing the a.3no2/e,ge-ent of re.eipt of /ease ite-1
9(8- Any other ,o.0-ent 2i// 4e o4taine, 4y the 4ran.h as per #O instr0.tion .ir.0/ar no1
'(.- Ins0ran.e D.o-prehensiveE= !0// .overage of .o-prehensive 0p to ,ate ins0ran.e of the
e80ip-ent 2i// have to 4e o4taine, 4y the /essee at their responsi4i/ity 7 .ost in favor of
PB&1 Origina/ -oney re.eipt for pay-ent of ins0ran.e pre-i0- a/ong 2ith origina/ .over
noteI ins0ran.e po/i.y -0st 4e s04-itte, to the 4ran.h1
:(.- +is40rse-ent .on,itions=
:()- A ,e./aration to 4e o4taine, fro- the /essee that no ,ire.torI sponsor of p04a/i 4an3 /t,1
99
:(2- Un,erta3ing sha// have to 4e o4taine, fro- the /essee to the affe.t that they have no
/ia4i/ities 2ith any other 4an3s DsE in their na-e1 Or in the na-e of their sisterI a//ie,
.on.ern DsE a..epting the /ia4i/ity if any ,e./are, in the /ease app/i.ation1
:(8- In the event of /essee fai/0re to pay ; .onse.0tive -onth/y renta/s or 4ran.hI vio/ation
of any ter-s 7 .on,ition of /ease agree-ent the 4an3 reserves the right to ta3e any or a// of
the fo//o2ing=
a1 "a3e over the possession of the e80ip-ent s0pp/ie,1
41 "a3e appropriate /ega/ a.tion for the partItota/ ,0es in spite of the /ease
perio, -entioning in this /etter1
:(9- Repairing 7 -aintenan.e .ost of the e80ip-ent sha// 4e 4orne 4y the /essee 7 no
a,,itiona/ a-o0nt of the /ease ite- 0n,er nay .ir.0-stan.es1
:('- "he /essee 2i// 4e /ega//y /ia4/e for any ,a-age of the /ease, o0t e80ip-ent1
:(:- "he pay-ent 2i// 4e -a,e in the na-e of the s0pp/ier thro0gh a pay-ent or,er1 Before
-a3ing pay-ent the 4ran.h -anager sha// ens0re that the vehi./e has 4een s0pp/ie, as per
spe.ifi.ation -entione, in the /etter1 A satisfa.tion /etter of the 4ran.h -anager is to s04-it
to #O, /ease finan.ing ,ivision1 A 4oar, to 4e ,isp/aye, in .onspi.0o0s p/a.es on the
vehi./es1 B&ease asset of PB&, %otijhee/ Bran.h, +ha3a1
:(<- &ease agree-ent signe, 4y the /essee 2i// not 4e ter-inate, 4y the /essee 0ni/atera//y
0n,er any .ir.0-stan.es1
:(*- Before -a3ing to pay-ent to the s0pp/ier, the 4ran.h -anager sha// s0pp/ie, verify, the
parti.0/ars of e80ip-ent as per a4ove spe.ifi.ation 0n,er seria/ no1 the 4ran.h -anager 7
other .on.erne, offi.ia/s 2i// 4e responsi4/e for any ,eviation fro- the spe.ifi.ations
-entione, at '& no1 A satisfa.tion .ertifi.ate is to 4e sent to #O, /ease finan.ing ,ivision
,0/y signe, 4y the 4ran.h -anager1
:(0- +e/aye, .harge= !or any ,e/aye, pay-ent of -onth/y renta/ the /essee 2i// have to pay
,e/aye,I ,e/in80ent .harge P 1?19? G1
:().- No e<.ess ,ra2ing over the san.tion /i-it 4e a//o2e, 4y the 4ran.h1
:())- A// .ost for ,o.0-entation 7 /ega/ .harge are to 4e 4orne 4y the /essee1
:()2- A// .osts for ,o.0-entation 7 /ega/ .harge Ie<penses are to 4e 4orne 4y the /essee1
A// ,o.0-ente, 0n,er ,ire.t s0pervision of B&A 7 B&A' satisfa.tion .ertifi.ate is to 4e
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o4taine, 7 s04-itte, to hea, offi.e /ease finan.ing ,ivision 2ithin ; ,ays after .reation of
/ease1
<(.- '0pervision 7 !o//o2 0p=
Effe.tive 7 .onstant s0pervision 7 fo//o2 0p are to 4e -a,e 4y the 4ran.h -anager to
ens0re ti-e/y rea/iAation of -onth/y renta/s1 It sho0/, a/so 4e ta3en .are of that renta/s ,o
not 4e.o-e over,0e 0n,er any .ir.0-stan.es1 In this .onne.tion the 4ran.h 2i// engage
s0pervision offi.ers to e<er.ise ./ose 7 intensive s0pervision to ens0re satisfa.tory
perfor-an.e1 "he 4ran.h -anager 2i// -a3e fre80ent, on the spot inspe.tion of the /essees
operation1
*(.- "he ter- 7 .on,itions of the /ease -0st 4e .o--0ni.ate, to /essee in a separate
san.tion a,vi.e 7 s0.h ter-s 7 .on,itions -0st 4e a..epte, 4y the /essee in the ,0p/i.ate
.opy of the san.tion a,vi.e1 A .opy of san.tion a,vi.e .ontaining /essee:s a..eptan.e 4e
sent to /ease finan.ing ,ivision #ea, offi.e a/ong 2ith the .opy of e<e.0te, /ease
agree-ent1
0(.- "he -onth/y /ease renta/s are to 4e a..o0nte, for one the 4asis of the ./ose,
a-ortiAation sheet -ar3e, Anne<0re -11
).(.- "he /essee sha// 0n,er ta3e to the effe.t that they 2i// not avai/ any .re,it fa.i/ity fro-
other 4an3sI finan.ia/ instit0tion 2itho0t o4taining no o4je.tion .ertifi.ate DNo.E fro- o0r
4an31
))(.- &ease finan.ing /e,ger is to 4e -aintaine, 4y the 4ran.h as per seria/ 18 of hea, offi.e
instr0.tion .ir.0/ar no1 96@ ,ate, 16-06-600> 7 a -onth/y state-ent is to 4e sent to #O,
/ease finan.ing ,ivision as per instr0.tion .ir.0/ar no1 86? ,ate, 0@-16-600>1
En./ose= /oan a-ortiAation ta4/e1
0(9 !oan amorti4ation ta%le 1hich is sent %y head office is gi6en %elo1=
Pu%ali an, ltd, lease financing di6ision, head office, ;ha,a(
;ate:
Na-e of Bran.h=%otijhee/ Bran.h,+ha3a1
Na-e of /essee=Virgo phar-a.e0ti.a/s /t,
99
&ease renta/ s.he,0/e
&ease a-o0nt "*1 ?>1>0 /a.
&ease ter-, -onth @0
)ra.e perio,, -onth 00
&ease ,eposit "*11,68,90>100
Interest %onitoring Ris3 "ota/
Rate 1>19? G 00G 00G 1>19?G
!oan ammoni4ation ta%le
Sl no: Principal
amount
Monthly Installment >est
principal
amount
Monthly
rental
Interest Monitoring >is, Principal
reco6ery
) '99.... )2*<.9 ::*:< .. .. :)*8* '8<*):2
2 '8<*):2 )2*<.9 ::).< .. .. :2'0* '8)'':9
8 '8)'':9 )2*<.9 :'88< .. .. :88:< '2'2)0<
9 '2'290< )2*<.9 :9''* .. .. :9)9: ')**.'<
' ')**.') )2*<.9 :8<<. .. .. :908' ')28)):
: ')28)): )2*<.9 :20<2 .. .. :'<88 '.'<8*8
< '.'<8*8 )2*<.9 :2):9 .. .. ::'9. 900.*98
* 900.*98 )2*<.9 :)89: .. .. :<8'0 90289*9
0 90289*9 )2*<.9 :.')* .. .. :*)*< 9*''20<
). 9*''20< )2*<.9 '0:*. .. .. :0.2' 9<:2<8
)) 9<:2<8 )2*<.9 '**8) .. .. :0*<8 9<):9..
)2 9<):9.. )2*<.9 '<0<2 .. .. <.<82 9:9'::<
)8 9:9'::< )2*<.9 '<).8 .. .. <):.) 9'<9.::
)9 9'<9.:: )2*<.9 ':228 .. .. <29*2 9:.)'*'
)' 9'.)'*' )2*<.9 ''882 .. .. <88<2 992*2)2
): 992*2)2 )2*<.9 '998. .. .. <92<9 98'808*
)< 98'808* )2*<.9 '8')< .. .. <')*< 92<*<'.
)* 92<*<'. )2*<.9 '2'08 .. .. <:))) 92.2:80
)0 92.2:80 )2*<.9 '):'< .. .. <<.9< 9)2''02
2. 9)2''02 )2*<.9 '.<). .. .. <<009 9.9<'0*
2) 9.9<'0* )2*<.9 90<'2 .. .. <*0'8 80:*:9'
22 80:*:9' )2*<.9 9*<*) .. .. <0028 8***<22
28 8***<22 )2*<.9 9<<00 .. .. *.0.: 8*.<<*):
29 8*.<*): )2*<.9 9:*.9 .. .. *)0.. 8<2'0):
2' 8<2'0): )2*<.9 9'<0* .. .. *20.< 8:98.).
2: 8:98.). )2*<.9 99<<0 .. .. *802: 8''0.*9
99
2< 8''0.*9 )2*<.9 98<9< .. .. *90'< 89<9)2<
2* 89<9)2< )2*<.9 92<.8 .. .. *:..2 88**)2'
20 88**)2' )2*<.9 9):9: .. .. *<.'0 88.).::
8. 88.).:: )2*<.9 9.'<: .. .. **)20 8)2)208<
8) 8)2)208< )2*<.9 80902 .. .. *02)2 8)28<2'
82 8)28<2' )2*<.9 8*80: .. .. 0.8.0 8.889)<
88 8.889)< )2*<.9 8<2*: .. .. 0)9)0 209)00*
89 209)00* )2*<.9 8:):2 .. .. 02'92 2*909':
8' 2*909'* )2*<.9 8'.2' .. .. 08:*. 2<''<<:
8: 2<''<<: )2*<.9 88*<8 .. .. 09*8) 2::.099
8< 2::.099 )2*<.9 82<.< .. .. 0'00< 2':909<
8* 2':909< )2*<.9 8)'2< .. .. 0<)<< 29:<<<.
80 29:<<<. )2*<.9 8.888 .. .. 0*8<) 28:<800
9. 28:0800 )2*<.9 20)29 .. .. 00'*) 22:0*)*
9) 22:0*)* )2*<.9 2<0.. .. .. )..*0' 2):0.)9
92 2):0.)9 )2*<.9 2:::) .. .. ).2.99 2.::0<.
98 2.::0<. )2*<.9 2'9.< .. .. ).820* )0:8:<2
99 )0:8:<2 )2*<.9 29)8< .. .. ).9':* )*'0).'
9' )*'0).' )2*<.9 22*') .. .. ).'*'8 )<'82'2
9: )<'82'2 )2*<.9 2)''. .. .. ).<)'9 ):9:.0*
9< ):9:.0* )2*<.9 2.288 .. .. ).*9<) )'8<:2<
9* )'8<:2< )2*<.9 )*0.. .. .. ).0*.9 )92<*22
90 )92<*22 )2*<.9 )<''. .. .. ))))'9 )8):::*
'. )8):::* )2*<.9 ):)*9 .. .. ))2'2. )2.9)9*
') )2.9)9* )2*<.9 )9*.) .. .. ))80.8 ).0.299
'2 ).0.299 )2*<.9 )89.) .. .. ))'8.9 0<909)
'8 0<909) )2*<.9 ))0*9 .. .. )):<2) *'*22.
'9 *'*22. )2*<.9 ).'90 .. .. ))*)'' <9..:9
'' <9..:9 )2*<.9 0.0< .. .. ))0:.* :2.9'<
': :2.9'< )2*<.9 <:2: .. .. )2).<* 9008<0
'< 9008<0 )2*<.9 :)8* .. .. )22':: 8<:*)2
'* 8<:*)2 )2*<.9 9:82 .. .. )29.<8 2'2<80
'0 2'2<80 )2*<.9 8).< .. .. )2''0* )2<)92
:. )2<)92 )2*<.9 )':8 .. .. )2<)92 ..
'o0r.e= fro- P04a/i Ban3 persona/ re.or,1
Ta%le-'
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0(' Step 9: After the san.tion /etter Bran.h 2i// sen, an a,vi.e /etter to the /essee a..or,ing
to the ter-s 7 .on,ition1 If /essee agrees 2ith a// .on,ition of PB& 7 .an sho2 other
,o.0-ent s0.h as= 1E B&A:s satisfa.tion .ertifi.ate regar,ing ,o.0-ents in stan,ar, for-1
6E (ertifi.ate of ins0ran.e in the na-e of PB&1
;E Registration a.3no2/e,ge-ent s/ip of BR"A1 "hen, e80ip-ent /ease finan.ing
transa.tion 2i// o..0r1
'(8(0 Bhether lease items are sho1n in the %alance sheet:
Off-Ba/an.e 'heet refers to assets an, /ia4i/ities 2hi.h are not ref/e.te, on the Ba/an.e
'heet1
"he -ost .o--on e<a-p/e 2o0/, 4e a /ease of e80ip-ent1 'in.e the e80ip-ent is treate,
/i3e a renta/, the asset an, the .orrespon,ing /ia4i/ity are not sho2n on the 4a/an.e sheet1
&ease pay-ents are e<pense, as pai, an, the /ease o4/igation 2o0/, 4e ,is./ose, in a note
to the finan.ia/ state-ent1 !or the a4ove reason, /easing is often .a//e, off 4a/an.e sheet
finan.ing1
'(8(). #ccounting treatment of lease financing:
Cournal Entries >e?uired
1E E80ip-ent AI. +r
&ease &ia4i/ity (r
Une<pire, &ease (harges +r
+To %ring to account E?uipment asset and lease lia%ility at the inception of the lease(-
6E &ease &ia4i/ity +r
(ash at Ban3 (r
DTo record first lease payment at first month-
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;E&ease (hargesIInterest +r
Une<pire, &ease (harges (r
DTo record lease interest charges that ha6e e@pired-
'(8()) The lease 6ersus purchase decision:
Another 2ay to 3eep e80ip-ent .osts ,o2n is to /ease instea, of 40y1 "hese ,ays, j0st a4o0t
anything .an 4e /ease,--fro- .o-p0ters an, heavy -a.hinery to .o-p/ete offi.es1 "he 3in,
of 40siness yo0Fre in an, the type of e80ip-ent yo0Fre .onsi,ering are -ajor fa.tors in
,eter-ining 2hether to /ease or 40y1 If yo0Fre j0st starting o0t an, on/y nee, one .o-p0ter,
for instan.e, it pro4a4/y -a3es -ore sense to 40y1 On the other han,, if yo0Fre opening an
offi.e that 2i// have severa/ e-p/oyees an, re80ire a ,oAen .o-p0ters, yo0 -ay 2ant to
/oo3 into /easing1
A..or,ing to the E80ip-ent &easing Asso.iation of A-eri.a, appro<i-ate/y 80 per.ent of
U1'1 .o-panies /ease so-e or a// of their e80ip-ent, an, there are so-e tho0san,s of
e80ip-ent-/easing fir-s nation2i,e .atering to that ,e-an,1
&easing a,vantages in./0,e= -a3ing /o2er -onth/y pay-ents than yo0F, have 2ith a /oan,
getting a fi<e, finan.ing rate instea, of a f/oating rate, 4enefiting fro- ta< a,vantages,
.onserving 2or3ing .apita/ an, avoi,ing .ash-,evo0ring ,o2n pay-ents, an, gaining
i--e,iate a..ess to the -ost 0p-to-,ate 40siness too/s1 "he e80ip-ent a/so sho2s 0p on
yo0r in.o-e state-ent as a /ease e<pense rather than a p0r.hase1 If yo0 p0r.hase it, yo0r
4a/an.e sheet 4e.o-es /ess /i80i,1
&easing a/so has its ,o2nsi,e, ho2ever= Jo0 -ay pay a higher pri.e over the /ong ter-1
Another ,ra24a.3 is that /easing .o--its yo0 to retaining a pie.e of e80ip-ent for a
.ertain ti-e perio,, 2hi.h .an 4e pro4/e-ati. if yo0r 40siness is in f/0<1
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))() !eases 6s( uy: E@ample
"he e<a-p/e 4e/o2 2i// 0se the fo//o2ing ass0-ptions to i//0strate the (A'# ,ifferen.e
4et2een 40ying an, /easing e80ip-ent=
&EA'E ELA%P&E=
E80ip-ent (ost= "*100,000
&ease "er-= @0 %onths
P0r.hase Option= 10G
%onth/y Renta/= "*66>8100
"a< Bra.3et= ;>G
Ret0rn on (apita/= 16G
BUJ ELA%P&E 7 RE'U&"'=
"*100,000 P0r.hase Pri.e
"* ;>,000 ;>G "a<
"* 1;>,000 After "a< P0r.hase .ost
"* @0,000 &ost Ret0rn on or3ing (apita/
"* 15>,000 Rea/ (ost of Paying (ash
!E#SE >ES7!TS:
"* 6,6>8 %onth/y Renta/
"* < @0 %onths
"*1;>,000 "ota/ &ease Pay-ents
"*10,000 P0r.hase Option
"*1>>,000 Rea/ (ost of &easing
D;ecision: From the a%o6e discussion 1e can see, that company +lessee- can ac?uire
e?uipment or hea6y machinery %y 1ay of lease instead of %uy(
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'(8()2 !ease financing helps firms to meet 6ariety of %usiness goals:
In to,ay:s 0n.ertain e.ono-i. environ-ent, 40sinesses nee,ing to 40y te.hno/ogy
e80ip-ent are ho/,ing on to their .ash, an, those /oo3ing to generate sa/es are 2ary of
offering .re,it1 hi/e so-e 2ait o0t this sit0ation, s-art .o-panies are /oo3ing at ho2
finan.ing options .an he/p -eet strategi. o4je.tives1 hether a .o-pany nee,s to se// or
pro.0re e80ip-ent, /easing -ay 4e a s-art so/0tion1 Earnings reports over the past t2o
years have to/, the stories of those te.hno/ogy .o-panies that a//o2e, e-erging 40sinesses
to p0r.hase on .re,it1 %any 2o0/, have 4etter s0rvive, the ,ot-.o- fa//o0t ha, they
partnere, 2ith a thir, party fo.0se, so/e/y on the finan.ia/ aspe.ts instea, of the 4enefits of
the sa/e1 ith the thir, party a4sor4ing the ris3 of e<ten,ing ter-s, 4enefits of provi,ing
.0sto-ers 2ith /easing a/ternatives in./0,e=
)enerating /arger, -ore-profita4/e sa/es faster1 "hro0gh a /ease, .0sto-ers .an
arrange a fi<e, -onth/y 40,get that 2o0/, a//o2 the- to a.80ire -ore e80ip-ent
than they .o0/, 2ith a .ash sa/e1 An,, 4e.a0se the finan.ing so0r.e is a/rea,y
esta4/ishe,, the sa/e ./oses -ore 80i.3/y1
&o2ering ,ays-sa/es-o0tstan,ing1 (onsi,er a .o-pany 2ith 80arter/y .ash sa/es of
Q?0 -i//ion1 On average, it 2i// ta3e >? ,ays to .o//e.t pay-ent1 Ass0-ing a
4orro2ing rate of 9 per.ent, the >?-,ay /ag in pay-ent res0/ts in a .arrying .ost of
Q>;9,?001 If the sa-e n0-4ers are r0n 2ith a /easing finan.e progra- that generates
pay-ent 2ithin 10 ,ays, the .arrying .ost ,rops Q59,666, saving the .o-pany -ore
than Q;>0,000 over a three--onth perio,1
I-proving sa/es effi.ien.y an, pro,0.tivity1 #aving a tr0ste, reso0r.e i--e,iate/y
avai/a4/e to a..0rate/y ,eter-ine a potentia/ .0sto-er:s .re,it-2orthiness e/i-inates
ti-e spent on Bno-goC sa/es1 A /easing partner .an a/so he/p ./ose the sa/e on the
finan.ia/ si,e hi/e nee,s are e<p/ore, on the te.hno/ogy si,e1
In.reasing a..o0nt .ontro/1 Again, 2ith a 3no2n f0n,ing so0r.e an, f/e<i4/e
options, .o-panies se//ing e80ip-ent .an offer a .o-p/ete so/0tion= e80ip-ent,
servi.e an, finan.ing1 A /ease a/so opens the ,oor for a /onger-ter- re/ationship,
4e.a0se it presents 0pgra,e opport0nities thro0gho0t the /ife of the /ease, an, at its
.on./0sion1
99
I-proving .ash f/o21 'i-i/ar to the a4ove, ./osing the sa/e faster a,,s -oney to the
4otto- /ine that .an 4e rea//o.ate, for a,,itiona/ reven0e generating a.tivities1
+ifferentiating a .o-pany fro- its .o-petition1 &et:s fa.e it1 In to,ay:s .o-petitive
40siness environ-ent, .0sto-er servi.e -a3es the ,ifferen.e1 A// things 4eing
e80a/, a .0sto-er is -ore /i3e/y to 40y fro- a .o-pany that -a3es the 2ho/e
transa.tion hass/e-free1
(ontro//ing the after--ar3et of 0se, e80ip-ent1 A,van.e agree-ents 2ith the
/easing .o-pany typi.a//y have set after--ar3et r0/es, re,0.ing the /i3e/ihoo, that
yo0r o2n 0se, e80ip-ent 2i// /ater 4e.o-e yo0r ne2 .o-petition1 "hose in nee, of
e80ip-ent /i3e/y 3no2 a// too 2e// that the 2ait-an, see approa.h that has perva,e,
for the past fe2 80arters ,oes rea.h a point 2here a.tion is re80ire,1 "his is
espe.ia//y tr0e 2hen .onsi,ering te.hno/ogy e80ip-ent, 3no2ing that .apa4i/ities
an, pri.es .hange every ,ay1
A /ease .an he/p a,,ress this .on.ern 4y preventing o4so/es.en.e1 "hat:s 4e.a0se 2ith a
/ease, .o-panies pay for e80ip-ent 0se over ti-e, /i3e rent1 In -ost .ases, it si-p/y ,oes
not -a3e sense to 40y assets that ,epre.iate in va/0e1 An,, /eases provi,e the f/e<i4i/ity to
0pgra,e or a,, e80ip-ent to -eet ever-.hanging nee,s an, te.hno/ogi.a/ a,van.e-ents1
Other 4enefits to /easing te.hno/ogy e80ip-ent in./0,e=
"a< treat-ent1 "he IR' ,oes not .onsi,er an operating /ease to 4e a p0r.hase, 40t
rather a ta<-,e,0.ti4/e overhea, e<pense1 "herefore, .o-panies .an typi.a//y ,e,0.t
the /ease pay-ents fro- .orporate in.o-e1
One h0n,re, per.ent finan.ing1 Un/i3e other types of finan.ing, /easing ena4/es
.o-panies to finan.e a tota/ so/0tion, 4e.a0se soft .osts /i3e insta//ation an,
soft2are .an 4e in./0,e, in the /ease1
Asset -anage-ent1 A /ease provi,es the 0se of e80ip-ent for spe.ifi. perio,s of
ti-e at fi<e, pay-ents1 "he /essor ass0-es an, -anages the ris3 of e80ip-ent
o2nership1 At the en, of the /ease, the /essor is responsi4/e for the ,isposition of the
asset1
I-prove, .ash fore.asting1 "he /essee 3no2s the a-o0nt an, n0-4er of /ease
pay-ents, so they .an a..0rate/y fore.ast the .ash re80ire-ents for e80ip-ent1 As
99
2ith anything, -a3ing a /ease or a .0sto-er /easing progra- 2or3 ,epen,s /arge/y
on the right progra-s an, partner1
'(8()8 E6aluation %y the lessee
Any prospe.tive /ease -0st 4e eva/0ate, 4y 4oth the /essee 7 /essor 1"he /essee -0st
,eter-ine 2hether /easing an asset 2i// 4e /ess .ost/y than 40ying it, 7 the /essor -0st
,e.i,e 2hether the /ease 2i// provi,e a reasona4/e rate of ret0rn1 In the typi.a/ .ase, the
events /ea,ing /ease arrange-ent fo//o2 the se80en.e ,es.ri4e, in the fo//o2ing /ist1 e
sho0/, note that a great ,ea/ of theoreti.a/ /iterat0re e<ists a4o0t the .orre.t 2ay to eva/0ate
/ease vs p0r.hase ,e.ision, 7 so-e .o-p/e< ,e.ision -o,e/s have 4een ,eve/ope, to ai, in
ana/ysis1 #o2ever, /ea,s to the .orre.t ,e.ision in every .ase 2e have en.o0ntere,N
1E "he fir- ,e.i,es to a.80ire a parti.0/ar pie.e of e80ip-ent 1this ,e.ision is
4ase, on reg0/ar .apita/ 40,geting pro.e,0re 7 it is an iss0e of typi.a/ /ease
ana/ysis1 In a /ease ana/ysis, 2e are .on.erne, si-p/y 2ith 2hether to finan.e
the e80ip-ent 4y a /ease or 4y a /oan1
6E On.e the fir- has ,e.i,e, to a.80ire the e80ip-ent1 "he ne<t 80estion is ho2 to
finan.e it1 e// r0n 40siness ,o not have /arge a-o0nt of e<.ess .ash so ne2
e80ip-ents -0st 4e finan.e, in so-e -anner1
;E !0n,s to p0r.hase the e80ip-ent .o0/, 4e o4taine, 4y 4orro2ings, or 4y
iss0ing ne2 sto.31 A/ternative/y, the e80ip-ent .o0/, 4e /ease,1
99
'(8()9 Factors that affect leasing decisions
The factors are gi6en %elo1:
1E Esti-ate, resi,0a/ va/0e= It is i-portant to note that the /essor 2i// o2n the property
0pon the e<piration of the /ease 1"he esti-ate, en,-of /ease va/0e of the property is
.a//e, resi,0a/ va/0e1 '0perfi.ia//y it 2o0/, appear that if resi,0a/ va/0e is e<pe.te,
to 4e /arge, o2ing 2o0/, have an a,vantage over /easing1 #o2ever the e<pe.te,
resi,0a/ va/0e is /arge Mas it -ight 4e 0n,er inf/ation for .ertain types of e80ip-ent
as 2e// as if rea/ property is invo/ve,-then .o-petition a-ong /easing
.o-paniesI4an3s 2i// for.e /easing rates ,o2n to the point 2here potentia/ resi,0a/
va/0e 2i// 4e f0//y re.ogniAe, in the /ease .ontra.t rate 1"h0s the e<isten.e of /arge
resi,0a/ va/0e on e80ip-ent is not /i3e/y to 4ias the ,e.ision against /easing1
6E In.rease, .re,it avai/a4i/ity= &easing so-eti-es is sai, to have an a,vantage for
fir-s that are see3ing the -a<i-0- ,egree of finan.ia/ /everage1 !irst, it so-eti-es
is arg0e, that a fir- .an o4tain -ore -oney1 7 for a /onger perio, 0n,er a /ease
arrange-ent than 0n,er a /oan se.0re, 4y the e80ip-ent1 'e.on,, /eases ,o not
appear on the 4a/an.e sheet, /ease finan.ing has 4een sai, to give the fir- a stronger
appearan.e in a s0perfi.ia/ .re,it ana/ysis, th0s per-itting it to 0se -ore /everage
than it .o0/, if it ,i, not /ease1 "here -ight 4e so-e tr0th to these ./ai-s for s-a//er
fir-s1 #o2ever, 4e.a0se /arger fir-s are re80ire, to .apita/iAe -ajor /eases 7 to
report the- on their 4a/an.e sheet, this point is of 80estiona4/e va/i,ity1
99
Internship Report for IBA, Rajshahi University Page- @0
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Chap!"#4
#nalysis of the Bor,s:
'(9 Performance of Pu%ali %an, !imited
5.4.1. P!"+*"2a&8! *+ P45a--( Ba&13 AA88*".(&, * A&&4a- R!p*"B
Eey Financial as at 8)
st
;ecem%er 2..0
Particulars 600? 600@ 6009 6008 6005
A0thoriAe, (apita/ ?,000100 ?,000100 ?,000100 ?,000100 ?,000100
Pai,-0p (apita/ >00100 1600100 6100100 65>0100 ;866100
Reserve !0n, 7 other
Reserve
6>81161 ;;691?0 ;8;6105 >@0@186 ?@8916?
+eposits >>>>;10; >8@9?15;
?955@186 9;01@1?1
88>@@1@@
A,van.e
;6@;51@8 >0;8@1@? ?0?>5119 @198811?
9>60;1;;
Invest-ents
??;@18> >586110 ???@1?8 8;9?1?5
161@81@?
I-port B0siness
6@0;;180 ;9;1@1?0 >8;>?1>1 ?8005110
@0>5;18?
E<port B0siness
1?961110 19901180 155091?0 6>95?1@?
6>9;51@?
Bri,ge !inan.e
9165 911> @185 @185
@185
"ota/ In.o-e
>>;?150 ?>5>1>5 90891@; 500516?
10@@;181
"ota/ E<pen,it0re
;0@;169 ;@8>1>; >1>?1@@ ??@;1;5
@86>1;>
Pre-ta< Profit
10>61@; 181010@ 65>1159 ;>>?18@
;8;51>9
Net Profit
?9;1>? 8>?1?; 1;?;1?1 1?1?16;
605616;
"ota/ Assets
?6@911>> ?8>0111> 91?@01@@ 8588>190
109?951@0
!i<e, Assets
?>@1>8 1;@5109 1;@916; 1;8;1;@
1>>;1?0
Other Infor-ation:s
N0-4er of E-p/oyees
?088 ?1>1 ?690 ?;61
?;9?
N0-4er of 'hareho/,ers
9?51 11@59 15005 6>1?;
;0855
N0-4er of Bran.hes
;?0 ;?@ ;@1 ;91
;51
Earning per or,inary share
1>;1;@ 901>@ @>1>? ?11?>
?>09>
Ta%le-:
99
Eey Financial as at 8)
st
;ecem%er 2..0
Graph-)
/omment: #ere pai, 0p .apita/ 2as /argest a-o0nt of this year 60051 then the se.on,
/argest a-o0nt 2as ,eposit, then a,van.e a-o0nt1 I-port 40siness a/so satisfa.tory a-o0nt
40t tota/ in.o-e, I-port 40siness, Invest-ent an, reserve f0n, a-o0nt 2as very poor1 On
the other han, e<pen,it0re a-o0nt 2as /o2 2hi.h is goo, for 4an3ing se.tor1
99
Graph-2
/omment: P04a/i Ban3 is a p04/i. /i-ite, Ban31 'o fro- this graph 2e .an see that p04/i.
share is @019?G 2hi.h is the /argest a-o0nt than other1 On the other han, +ire.tors has
111;G an, )overn-ent has on/y 10006G1
99
Percentage of Shareholding
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Graph-8
/omment: #ere pai, 0p .apita/ 2as greater than other 2hi.h 2as >1G an, then stat0tory
reserve is ;;11?G1 )enera/ reserve 2as 1>G an, other reserve 2as 16G so the 4an3
perfor-an.e is -0.h 4etter1
99
Percentage of Shareholders E?uity
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'(9(2 The performance and e6aluation of different facts and figures of Profit and !oan
and #d6ance are as follo1s:
=et profit of Pu%ali an, !imited
Figure in Million
Graph-9
(o--ent= !ro- this graph 2e see that Net Profit of the year of 600? is so /ess1 "hen it 2as
in.reasing respe.tive/y an, in 6005 it gone to the highest a-o0nt 6000 -i//ion1 "his
in.reasing a-o0nt .an 4ring the s0..essf0/ f0t0re for a Ban31
99
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#d6ance of Pu%ali an, !imited
Graph-'
/omment: "his )raph sho2s the A,van.e se.tor of P04a/i Ban3 &i-ite,1 !ro- this graph
2e see that the year 600? the A,van.e a-o0nt is so /ess, then it 2as in.reasing respe.tive/y1
'o the year 6005 the A,van.e a-o0nt .rosse, 90000 -i//ion1 An, a,van.e a-o0nt 4ring
-ore 4enefit than ,eposit a-o0nt1 'o this res0/t is goo, for a 4an3ing se.tor1
99
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/redit +;i6ision 1ise- A +Sector Bise- of Pu%ali an, !imited:
Graph-:
Graph-<
99
/omment: #ere graph no ; 2e .an see that +ha3a ,ivision has the /argest a-o0nt .re,it1
Be.a0se +ha3a is one of the perfe.t ,ivision for 40siness se.tor1 "hen ne<t position 2e
get (hittagong 2hi.h is one of the 40siness 4ase, .ity1 On the other han, graph no >
2e .an see that the private se.tor ta3e the a// types of .re,it a,vantage1 '0.h as /oan
an, &ease1 'o 2e .an see that the .re,it ,ivision 4ase, on the private se.tor of
Bang/a,esh1
Gro1th >ate+2..0- of Pu%ali an, ltd:
Graph-*
(o--ent= #ere 2e .an see that in the year 6005, A,van.e gro2th rate 2as 60105G,
Invest-ent rate >?165G, I-port rate >168G, E<port rate ?10;G an, In2ar, foreign
E<.hange rate 6?10>G1 'o 2e .an say that Invest-ent gro2th rate is highest than other, then
the se.on, /arger gro2th rate 2as In2ar, foreign e<.hange1
99
F1
111
Chap!"#5
'(' Identification of pro%lem
'('() Pro%lems of e?uipment lease financing under loan Aad6ances(
"he ina,e80a.y of the 4an3:s po/i.ies or pra.ti.es regar,ing /eases1
A,verse tren,s in the /easing ,epart-ent1
P04a/i Ban3 so-eti-es ,oes not ta3e the proper .o//atera/ se.0rity for giving &ease
finan.e1
&a.3 of e<pertise for eva/0ating the proje.t a4o0t e80ip-ent /ease finan.ing
P04a/i Ban3 so-e ti-es provi,e, /oan on/y on the 4asis of inter-persona/
re/ationship 2ith the ./ients1
Ne.essary training is not provi,e, to the offi.ers in -eas0ring ris3 an, in se/e.ting
the profita4/e proje.ts1
Physi.a/ an, te.hno/ogi.a/ fa.i/ities are so -0.h poor in the ti-e of .re,it proposa/s
an, a/so in -onitoring the re.overy of a,van.es1
&a.3 of E<perien.e, an, e<pert personne/ for -onitoring e80ip-ent /ease
finan.ing1
99
Chap!"#7
:( Findings a&. 8*&8-4/(*&/3
:() Findings(
"he fin,ing of the report sho2s that-
"he .0sto-ers are intereste, in re.eiving 4an3ing servi.es1
"hey are very 80a/ity .ons.io0s 7 .ost sensitive1 (0sto-ers are /ess satisfie,
2ith the present servi.es of the 4an31
On/y private se.tor is 0sing this servi.e1
On/y +ha3a ,ivision has r0n .re,it se.tor very s0..essf0//y1 Other ,ivisions
perfor-an.e is not satisfa.tory1
No2 4an3s profit is in.reasing as 2e// as /oan an, a,van.es a/so in.reasing1
At present, /ease finan.ing is -o,ern 7 pop0/ar for 2hi.h .0sto-ers are
very intereste,1 hether a .o-pany nee,s to se// or pro.0re e80ip-ent,
/easing -ay 4e a s-art so/0tion1
:(2 C*&8-4/(*& a&. R!8*22!&.a(*&.
:(2() /onclusion:
"he -ain reason of the st0,y is to ,eter-ine the present .on,ition of e80ip-ent /ease
finan.ing 0n,er /oan 7 a,van.es of P04a/i Ban3 in Bang/a,esh1 I j0st -a3e this report
thro0gh Persona/ o4servation an, ta/3ing 2ith the Ban3Fs Personne/1 As it is not a
professiona/ han,, there -ay 4e so-e /a.3ing here in every stage of the report1 "he fin,ings
of the report -ay not 4e re/ia4/e 4e.a0se it has not 4een teste,1
&oan se.tion /en,s the f0n,s 2hat the 4an3 -o4i/iAes its vario0s ,eposit a..o0nts1 'in.e
-ajor part of 4an3:s in.o-e is ,erive, fro- .re,it an, sin.e the 4an3s .re,ite, its
.0sto-er:s f0n,, 4an3 sho0/, ta3e e<tre-e .a0tion in /en,ing1 &eases are -ore profita4/e
than other .o--er.ia/ /oan 4e.a0se of a,vantages inherent in their str0.t0re, s0.h asN ta<
99
4enefit1 "he strength of /easing in,0stry has 4een its resi/ien.y 7 its a4i/ity to -a3e the
-ost of the
.hanging environ-ent1 &easing is the -ost 2i,e/y 0se, -etho,1 !or 4an3 /essor /easing is
another .o-petitive pro,0.t that .an satisfy the nee,s of 4an3 .0sto-er1 &eases -ay 4e
safer
than others 4an3 pro,0.t 4e.a0se the transa.tions are se.0re, 4y eva/0ating the
perfor-an.e I o4serve, that re.ent/y P04a/i Ban3 in.reases their a.tivity an, the- a/so
trying to re.overy their previo0s .on,ition1 & After .o//e.ting 7 ana/yAing the ,ata I have
got so-e fin,ings1 P04a/i Ban3 is not provi,ing the .re,it .ar, fa.i/ities,
)() Suggestions to de6elop the an,:
+eve/op /ease po/i.y
Proper -onitoring syste- to ,eve/op e80ip-ent /ease finan.ing
#0-an reso0r.e enri.h-ent1
(0sto-er .o-p/ains 4o< 7 syste- a//o.ation1
(o0nter visit1
)etting to 3no2 the .0sto-er1
"a3e the ro/e of the .0sto-ers1
'et o2n stan,ar,s for .0sto-er servi.e1
%a3e it easy for .0sto-ers to .onta.t1
#e/p .0sto-ers -a3e the right .hoi.e1
%a3e it .onvenient for .0sto-ers to ,o 40siness1
I-prove .0sto-er re.eption1
(o--0ni.ating priorities to staff1
B0i/t .0sto-er /oya/ty1
%aintain /ong ter- re/ationship -ar3eting1
I-prove the effi.ien.y of a,-inistration 7 E-p/oyees1
%onitor .0sto-er satisfa.tion /eve/1
%a3e a /ong ter- re/ationship 2ith the .0sto-er1
99
:(2(2 >ecommendations:
By ana/yAing the 2ho/e report .on,0.te, for P04a/i Ban3 &t,1 the re.o--en,ations .o0/,
4e -a,e of the fo//o2ing iss0es to i-prove the po/i.ies 7 pra.ti.es of e80ip-ent /ease
finan.ing of p04a/i 4an3 /t,N
2.1 R!8*22!&.a(*&/ * h! 5a&13
It .an re,0.e A,verse tren,s in the /easing ,epart-ent
It .an intro,0.e the a,e80a.y of the 4an3:s po/i.ies or pra.ti.es regar,ing e80ip-ent
/ease finan.ing
E<pertise sho0/, 4e invo/ve, in the pro.ess of fore.asting f0t0re prospe.t of the
proje.ts a4o0t /ease finan.e1
It .an intro,0.e B(re,it (ar,R servi.e 7 s0pport its -er.hants 7 he/p to gro2
-ar3et share rapi,/y 7 aggressive/y to in.rease profita4i/ity1
By Bon-/ine Ban3ing 'yste-R it .an intro,0.e -o,ern te.hno/ogy for 4etter
.0sto-er servi.es1
Ne.essary pre.a0tion sho0/, 4e ta3en to have the .o//atera/ ease of getting favora4/e
j0,g-ent an, esti-ation of origina/ va/0e is to 4e ens0re,1
&oans sho0/, not 4e provi,e, on/y on the 4asis of inter-persona/ re/ationship 2ith
the ./ients1
Ne.essary training sho0/, 4e provi,e, to 0pgra,e the effi.ien.y of the offi.ers in
-eas0ring ris3 an, in se/e.ting the profita4/e proje.ts1
Physi.a/ an, te.hno/ogi.a/ fa.i/ities sho0/, in.rease in eva/0ating .re,it proposa/s
an, a/so in -onitoring the re.overy of a,van.es1
E<perien.e, an, e<pert personne/ sho0/, 4e 3ept 2ithin the 4an3s 4y .onsi,ering
the goa/ .ongr0en.e, 2hi.h 2i// /ea, to a 80a/ity se/e.tion of ./ients in /en,ing
-oney1
+e.ision -a3ing a0thority sho0/, 4e ,e.entra/iAe, to so-e e<tent to e<pe,ite the
/en,ing pro.e,0re1
"he entire ,epart-ent sho0/, 4e 2e// infor-e, regar,ing their goa/s an, o4je.tives1
If is essentia/ to e<e.0te .o-pany o4je.tives into in,ivi,0a/ targets1
99
"here -0st 4e a ./ear a//o.ation of responsi4i/ities, a0thority an, a..o0nta4i/ity
'.ope sho0/, 4e given for 80i.3er ,e.ision -a3ing1 "op ,o2n .o--0ni.ation -0st
o..0r at a f0// pa.e of .o--it-ent1
It .an re,0.e interna/ .ontro/ ,efi.ien.ies or e<.eptions1
"he Ban3 sho0/, intro,0.e -ore pro-otiona/ a.tivities1
"he Ban3 sho0/, ta3e the initiative to ,eve/op an effe.tive resear.h an,
,eve/op-ent .enter to get innovative i,eas to .apt0re the .o-petitive -ar3et11
"hey sho0/, 3eep pra.ti.ing on the -o,ern 4an3ing syste-N s0.h as on /ine 4an3ing
an, intro,0.e the -anage-ent infor-ation syste- to prove the .o-peten.y 2ithin
the /o.a/ an, g/o4a/ arena1
'e/e.tion an, training -0st 4e fo.0se, to ,eve/op an, e<p/oit /ea,ership an,
entreprene0ria/ 80a/ifies 2ithin the 2or3p/a.e1
2(2 R!8*22!&.a(*&/ * h! G*'!"&2!&3
)overn-ent sho0/, -onitor the 4an3 proper/y so that no 4a, ,e4t or ,efa0/t /oan
.an o..0r in the 4an31
)overn-ent sho0/, not .hange the interest rate of /ease the 4an3 fre80ent/y 2hi.h
.o0/, ha-per the e.ono-i. sta4i/ity of the .o0ntry1
2.3 R!8*22!&.a(*&/ * h! 8('(- /*8(!63
Peop/e sho0/, pay 4a.3 the /oan of the 4an3 an, th0s he/p the so.iety1
%oney &a0n,ering an, .he80e fra0,/y sho0/, not 4e ,one in the 4an31
99
<( #ppendi@
<() #cronyms
P! : P04a/i Ban3 &i-ite,
;PS : +eposit Pension '.he-e
PPS : P04a/i Pension '.he-e
ST; : 'hort "er- +eposit
// : (ash (re,it
3; : Over +raft
!T> : &oan against "r0st Re.eipt
!IM : &oan against I-porte, %er.han,ise
P#; : Pay-ent Against +o.0-ent
P/ : Pa.3ing (re,it
IP : In/an, Bi// P0r.hase
FP : !oreign Bi// P0r.hase
G : Ban3 )0arantee
!/ : &etter Of (re,it
!/ : Ba.3-to-Ba.3 &(
/>G : (re,it Ris3 )ra,ing
/>M : (re,it Ris3 %anage-ent
5! : #o0se B0i/,ing &oan
= Bang/a,esh Ban3
/I : (re,it Infor-ation B0rea0
99
<(2 >EFE>E=/ES
Ann0a/ Report of P04a/i Ban3 &t,1
Ann0a/ 'tate-ent of Affairs of P04a/i Ban3 &t,,
+ifferent offi.ia/ re.or, of the 4ran.h1
Rose Peter '1, 600>-0?1(o--er.ia/ Ban3 %anage-ent1 !ifth E,ition1 Ne2 Jor3=
%. )ra2-#i//, In.1, pp1 >-11
A/i %1 O-ar, 60001 B0siness (o--0ni.ation= "heory an, App/i.ation1 "a/ai-ari=
%rs1 A3htar Hahan, In.1, pp1 68>-6851
%anageria/ finan.e= &a2ren.e 7 )it-an
P04/ai Ban3 &i-ite,1 6008-6005Ann0a/ report1
Essentia/s %anageria/ finan.e= '.ott Bes/ey, E0gene f1 Brigha-1
2221p04a/i4ang/a1.o-1
22214ang/a,esh info1.o-
2221Arti./es of e80ip-ent /ease finan.ing1.o-
2221goog/e1.o-
Ne2spapers= "he Bang/a,esh O4server, "he In,epen,ent1
'1N1 %ahesh, 60011Ban3ing /a2 7 Pra.ti.e1 Revise, 7 0p,ate E,ition1 *a/yani
P04/ishers, In.1, pp1@-691
Heft %a,0ra1 !inan.ia/ %ar3ets 7 Instit0tions1 'i<th E,ition1In.1,pp1 ?0?-?111
99
;imension )- Staff /onductF Employee eha6iorF EmployeesG /ustomer 5andling (
)( +o 0 "hing P04a/i Ban3 &t, Is %o,ern Ban3ing 'ervi.esS
Agree +isagree +on:t *no2
2( "he Ban3 Bran.h staffs are 2i//ing/y to a..ept yo0
8( "he Ban3 Bran.h staffs have the 2i//ingness to #e/p yo01
9( 'taffs never sho2 that they are too 40sy to respon, to yo0r 80estions
'( "he 4ran.h staff gives yo0 a 80i.3 servi.e DPro-ptness of servi.e fro- 4ran.h staffE
:( 'taffs a/2ays re.eive 2ar- greetings fro- the staffs ,0ring yo0r t0rn of servi.e
<( 'taffs a,-it an, ,is./ose any -ista3es .on,0.te, on their si,e1
*( 'taffs sho2 a .aring attit0,e ,0ring their servi.e
0( "he 4ran.h -aintains a ./ean an, p/easant environ-ent DNeat an, (/eanE
).( Jo0 a/2ays get easy a..ess to nee,e, infor-ation
))( "he -anager is an attentive /istener to .0sto-ers: pro4/e-s
)2( "he 4an3 -aintains an effe.tive .o-p/aint 4o<
)8( "he 4an3 4ran.h staff infor-e, yo0 2hen any transition or any -atter .on.erning
2ith yo0 is going to ta3e p/a.e DBran.h staff 3eeping -e infor-e, a4o0t -atters of
.on.ern to -eE
)9( "he staffs are .apa4/e eno0gh to han,/e ,iffi.0/t sit0ations
99
)'( 'taffs are sin.ere eno0gh for provi,ing satisfa.tory servi.e to yo0
):( 1 'taffs a/2ays -aintain a professiona/ appearan.e an, attit0,e
;imension 2 - /redi%ility: Maintaining staff-customer trust %y rectifying mista,es,
,eeping customers informed and 1ith their professional attitude(
)<( Ban3s se.0rity syste- is satisfa.tory
)*( On/ine Ban3ing syste- is s0ita4/e for p04/i. servi.es
)0( On/ine Ban3ing servi.es sho0/, 4e starte, for a// 4ran.hes
2.( Jo0 fee/ se.0rity that yo0r transa.tions .onfi,entia/
2)( Jo0 are .onfi,ent that the 4an3 has re.or,e, yo0r transa.tions a..0rate/y against yo0r
a..o0nt
22( Jo0 are a/2ays provi,e, 2ith error-free 4an3 state-ents
28( Jo0 4e/ieve that the 4an3 is paying .o-petitive interest rates on yo0r ,eposits
29( Jo0 are .onfi,ent that the 4an3 is .harging reasona4/e servi.e .harge fro- yo0
2'( "he 4an3 is not .harging anything e<tra than they ,is./ose
99
2:( )iving yo0 i,ea ho2 yo0 .an 3eep yo0r .harge /o2
2<( Provi,ing yo0 2ith a goo, va/0e in 4an3ing pro,0.ts an, servi.es
2*( Offering .onvenient 4an3ing ho0rs
20( Provi,ing .onvenient 4ran.h /o.ations
8.( Jo0 a..0rate/y 3no2 ho2 -0.h servi.e .harge they are ta3ing for yo0 AI(
D'BI(AI'"+E
8)( Jo0 a..0rate/y 3no2 ho2 -0.h interest they are paying on yo0r ,eposits
82( Jo0 a..0rate/y 3no2 ho2 -0.h interest they are paying on yo0r &ease !inan.ing
88( &ease finan.ing .an 4e 4est ,e.ision to .o-pare p0r.hase
89( Jo0 a..0rate/y 3no2 ho2 -0.h interest they are paying on yo0r &oan1
8'( Jo0 a..0rate/y 3no2 ho2 -0.h they are .harging on yo0r ,ra2ingsS
99

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