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Part-1 (Introduction)

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1.1 Rationale for Selecting the Report:
There are some reasons for selecting Home Loan part because Rupali bank is profit-oriented
commercial institution. And these types of institutions provide banking services to general
people. And I hope that this report will definitely identify how the corporate world really works
& will help me to apply theoretical knowledge in the practical life. On the other hand banking
sector is one of the fastest growing sectors in our country. All the banks are offering newer
products and facilities to attract the customers and retain them. So I think working on this
particular bank it would be benefited for me to become familiar with the practical business
operations about banking activities. After the completion of my internship program I can be able
to know the different kinds Loan procedures from the bank I am working on.

1.2 Statement of the Problems:


To find out what kind of service provide by the competitors in Home loan product.
To find out the need and want of the customer and hence formulate the strategy to level
the economy in the society.
How the products are helping the customer.
To know the utility of the product.
To find out the need of the customer region and introduce new product or facilitate new
service in existing product

1.3 Scopes for the study


After completing 123 credits in International University of Business Agriculture and Technology
there were an opportunity to get appointment in one of the largest and renowned Rupali Bank
limited which explored a vast scope for the study. Scopes for the study depicted as follows:

a) Home Loan procedure followed by the Rupali Bank Ltd.


b) Background and prospective of Rupali Bank Ltd.

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1.4 Research Objectives:
Broad Objective:
The primary objective of this report is to fulfill the partial requirements of Bachelor of Business
Administration (BBA) degree and have a sound knowledge about Banking, specifically about the
Loan and Advances department of a bank.
Specific Objectives
To submit a report, for the fulfillment of my BBA practical.
To describe Home loan sanctioning process of Rupali Bank Limited
The main objective of this report is to find out the “Home Loan Operations of Rupali
Bank ltd.”
To gather comprehensive knowledge on overall banking functions and the expectations
of the customers regarding the service level of the bank.
To identify the problems related to Home loans operations of Rupali Bank Limited.
To make some recommendations to solve the problems.

1.5 Limitation of the Study

The study is conducted with an objective to make a thorough study of loans & advances
Procedures that have been availed many facilities and faced some obstacles during my study.
These obstacles may be termed as limitation of the study. These limitations are as follows:

Limitation of time during internship period.


The information acquired for the study was not adequate.
Confidential documents or objects to the firm were not available to access.
As the internship is the first practical experience, it is not possible to know everything
about the bank.

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1.6 Ethical Considerations:
Customer Focus and Fairness: At RBL, Their prime focus is to achieve perfection in their
customer service. Customers are their first priority and driving force. They wish to gain customer
confidence and be their trusted partner. They believe in fair treatment to all customers,
depositors, borrowers, and clients without any discrimination.

Quality: Quality service experience is a paramount to their customers and they are strongly
committed in fulfilling this ideal. They have a culture of timely compliance of regulatory
requirements.

Honesty and Integrity: They ensure the highest level of integrity to their customers, creating an
ongoing relationship of trust and confidence. They treat their customers with honesty, fairness
and respect.
Belief in our people: They recognize that employees are their most valuable asset and their
competitive strength. They respect the worth and dignity of individual employees who devote
their careers for the progress of the bank. They trust in equal treatment to all shareholders
irrespective of their individual size of shareholdings.

Teamwork: They are a firm believer in team work and feel that loyal and motivated team can
produce extraordinary results. They are driven by a performance culture where recognition and
rewards are based on individual merit and demonstrated track record.

Good Corporate Governance: Effective Corporate governance procedures are essential to


achieve and maintain public trust and confidence in any company, more so in a banking
company. At RBL, They are committed to following best practices resulting in good corporate
governance.

Corporate Social Responsibility: As a responsible corporate citizen, they consider it important


to act in a responsible manner towards the environment and society. Their commitment has
always been to behave ethically and contribute towards the improvement of quality of life of our
people, the community and greatly the society, of which they are an integral part.

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Part 2: Organizational Part

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2.1 Background of the Organization
Rupali bank limited (RBL) is a government bank. It started his journey in 1986 as a public
limited company under the name of Rupali bank under the companies Act 1913 with an
authorized capital of taka 7000 million. Rupali bank was incorporated as a banking company
under the company Act 1994. In the end 2014 it had 528 branches all over Bangladesh. Its
carries out all its banking activities through these branches among which 506 branches are
authorized dealer if foreign exchange. The bank is listed in the Dhaka and Chittagong stock
exchange as a private quoted company for its general class if shares. The authorized capital of
the bank is now taka 7000 million. The bank paid up capital taka 2087 million. Recently
Bangladesh Bank (BB) has approved that the bank could be increased their authorized capital
through issue right share for implementation the Basel-11. The bank‟s 90.19% share owner
Government and 6.87% share owner public and Institute 2.94%.

2.2 Corporate information of the organization

Rupali Bank Ltd at a Glance: Ltd.


Date if incorporation 14th December, 1986
Commencement of operation 14th December, 1986
Industry Banking industry of Bangladesh
Nature of Business Financial Banking System
Target customers Corporate customers and salaried person
Deposits(Up to 2016) TK. 27911.60 core
General Investment(Loans & advances) TK. 17515.04 core
Number of branches 562*
Total manpower 5438*
Chairman Mr Monzur Hossain
Managing Director Mr. Md. Ataur Rahman Prodhan
Web address www.rupalibank.org
Head Office address 34 Dilkusha C/A, Dhaka-1000.

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2.3 Financial Performance at a Glance of RBL


Figure 2.1 Financial Performances at a Glance of RBL

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2.4. Financial Performance & Ratio Analysis:

Figure 2.2 Financial Ratios Performances (Operating profit, Return on equity, Earnings per share, Net
asset

Operating profit: lower profit ratio indicates low profit capacity of a company. Here, in the year
2016 going down comparing other year by 2015. This result indicates more leverage and
negative sign for the company.

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Return on equity:Lower ROE indicates the low position that the company is effective in
generating in income or new investment. The return on equity was decreased in year 2016. In
2015 it‟s higher increased 2.52%.

Earnings per share: Earnings per share has decreased in 2016 by 4.56Tk. compared to the
previous year 2015 of 0.96. Tk.

Net asset: Net asset as an indicators of managerial efficiency .in year 2016 net asset 1165.64
before that the year 2015 its increased into 1270.65.

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Figure 2.3 Financial Ratios Performances (Stock performance, Returns on shareholder‟s fund, Net
asset value per share, Profit after tax

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Stock performance: here, we can see that the stock performance ratio 2016 was 10% and in
2015 the stock performance ratio is higher than 2016 that is 15%.

Returns on shareholder’s fund: Lower Returns on shareholder‟s fund indicates the low
position that the company is effective in generating in income or new investment. The return on
shareholder‟s fund was decreased in year 2016. In 2015 it‟s higher increased 19.69%.

Net asset value per share: here, we can see that the net asset value per share ratio 2016 was
42.23 and in 2015 the net asset per share ratio is higher than 2016 that is 52.94.

Profit after tax:Lower profit after tax ratio indicates the low position that the company is
effective in generating in income or new investment. The profit after tax was decreased in year
2016. In 2015 it‟s higher increased 23.50.

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Figure 2.4 Financial Ratios Performances (Cost –income ratio, Market price per share ratio, Deposit ratio,
Loans and advances ratio

Cost –income ratio: The bank cost income ratio margin was increased in 2016 but 2015 net
profit margin was 89.71 that profit margin is decreasing those years it is not good situation for
bank after that it recover in 2016 by104.11.

Market price per share ratio: Market price per share ratio an indicators of managerial
efficiency in year 2015 market price per share after that the year 2016 its decreased into 32.30%

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Deposit ratio: Higher deposit indicates the favorable position that the company is effective in
generating in income or new investment. The deposit was decreased in year 2015. In 2016 it‟s
higher increased.
Loans and advances ratio: Higher loans and advances ratio indicates the favorable position that
the company is effective in generating in income or new investment. The deposit was decreased
in year 2015. In 2016 it‟s higher increased.

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Figure 2.5 Financial Ratios Performances (Non-performing loans ratio, Non-interest income ratio,
Operating revenue ratio, Profit before tax ratio

Non-performing loans ratio: Higher loans and advances ratio indicates the favorable position
that the company is effective in generating in income or new investment. The loans and advances
were decreased in year 2015. In 2016 it‟s higher increased.
Non-interest income ratio: Lower non interest income ratio indicates the low position that the
company is effective in generating in income or new investment. The profit after tax was
decreased in year 2016. In 2015 it‟s higher increased 8,911.

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Operating revenue ratio: Higher operating revenue ratio indicates the favorable position that
the company is effective in generating in income or new investment. The operating revenue was
decreased in year 2015. In 2016 it‟s higher increased.
Profit before tax ratio: Lower profit before tax ratio indicates the low position that the
company is effective in generating in income or new investment. The profit before tax was
decreased in year 2016. In 2015 it‟s higher increased 8,911.

2.5 Corporate Governance:


Rupali Bank Limited is committed to comply with the every standards of corporate governance.
Corporate governance is the system by which companies are directed and controlled. It involves
a set of relationships between a company's management, its board, its shareholders and other
stakeholders. It deals with prevention or mitigation of the conflict of interests of stakeholders.
However, the principles of corporate governance include rights and equitable treatment of
shareholders, interests of other stakeholders, role and responsibilities of the board, integrity and
ethical behavior, disclosure and transparency of a company.

Figure 2.6 Corporate Governance

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BOARD OF DIRECTORS, CHAIRMAN, MANAGING DIRECTOR AND CEO

Sl No. Name Designation Picture

1. Mr. Monzur Hossain Chairman

2. Mr. Arijit Chowdhury Director

3. Mrs. Dina Ahsan Director

4. Mr. Mahiuddin Faruqui Director

5. Professor Dr.Md. Hasibur Rashid Director

6. Mr. Abu Sufian Director

7. Professor Dr. Mohammad Salim Uddin, Director


FCA, FCMA, MBA

8. Mr. A K M Delwer Hussain, FCMA Director

9. Professor Dr. Sushil Ranjan Howlader Independent


Director

10. Mr. Md. Abdul Baset khan Independent


Director

11. Mr. Md. Ataur Rahman Prodhan Managing


Director & CEO

Figure 2.7 BOARD OF DIRECTORS, CHAIRMAN, MANAGING DIRECTOR AND CEO

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Company’s policy on appointment of directors

The Bank has appointed directors as per Bank Company Act 1991,(amended in 2013),
Companies Act 1994, BRPD Circular No. 11/2013, Dhaka & Chittagong stock exchange (listing)
regulation 2015 and Article of Association of the Bank. The process of appointment of a director
starts with nomination made by the Financial Institution Division, Ministry of Finance. Board of
Directors of the Bank sends the proposal for appointment of Director to Bangladesh Bank.
Bangladesh Bank finally approves the appointment. The role of the board and its committees are
clearly stated in BRPD Circular No. 11/2013.

Non-executive Directors

All directors of RBL are non-executive except the Managing Director & CEO. There are 11
Directors including Managing Director & CEO. The Managing Director & CEO is an Ex-officio
Director of the Board.

Independent Director

Board has appointed 02 (Two) Independent Directors in consonance with the latest corporate
governance notification of BSEC and Bank Company Act 1991, (ammended in 2013). The
independent directors enjoy full independence in terms of carrying out their coveted
responsibilities. Independent Directors are well conversant in the field of business and
professional areas.

Chairman is Independent of CEO

As per Company Act 1994 the Chairman and the Managing Director & CEO of the Bank are
different individuals, so the Chairman does not interfere in day-to-day company matters. The
non-executive Chairman's duties are typically limited to matters directly related to the board,
such as- chairing the meetings of the board, organizing and coordinating the board's activities,
chairing the AGM and conducting the meeting as set in agenda, reviewing and evaluating the
performance of the managing director and the other senior executives.

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Responsibility of the Chairman of the Board

The Responsibility of the Chairman is defined in the BRPD Circular No. 11/2013 which is fully
complied by the bank. There is a clear delineation of responsibilities between the board and
management which the bank is operating, the management is held responsible for the execution
of the policies and accomplishment of bank's objectives. As per guidelines of Bangladesh Bank
the Chairman of a bank does not participate in or interfere into the administrative or operational
and routine affairs of the Bank.

Independence of Non-Executive Directors

All the non-executive Directors of the Bank are enjoying the autonomy and independence as
explained in corporate governance guidelines of Bangladesh Bank and Securities Exchange
Company.

Annual Appraisal of the Board’s Performance

To achieve the strategic objectives of RBL the board of directors are responsible for setting the
yearly business plans, formulating all sorts of policy, confirming key aspects of the bank's
internal organization, making decisions on the establishment of branches, evaluating and
assessing the key performance for managing director, reviewing operational and financial
performance, reviewing all sorts of risks and management of internal control and complance,
approving all the information supplied to shareholders in the annual general meeting, approving
capital expenditure, setting the borrowing limit, reviewing bank's systems of financial and
budgetary control, approving the human resources policy, reviewing and ratifying the decisions
of the different sub-committees of the Board. The Board members have always been appraised at
the AGM and shareholders have been very supportive of the board's decision.

Policy on annual evaluation of the CEO by the Board

The duties and responsibilities of the Managing Director and CEO are delineated in the BRPD
Circular No. 18/2013 . In terms of the financial, business and administrative authorities vested
upon him by the board, the CEO shall discharge his own responsibilities. He shall remain
accountable for achievement of financial and other business targets by means of business plan,

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efficient implementation thereof and prudent administrative and financial management. The
CEO shall ensure compliance of the Bank Company Act, 1991 and other relevant laws and
regulations in discharging routine functions of the bank. At the time of presenting any
memorandum in the Board Meeting or Board Committee Meeting, the CEO must point out if
there is any deviation from the Bank Company Act, 1991 and other relevant laws and
regulations. The CEO shall report to Bangladesh Bank any violation of the Bank Company Act,
1991 or of other laws/regulations. The recruitment and promotion of all staff of the bank except
those in the two tiers below him shall rest on the CEO. He shall act in such cases in accordance
with the approved service rules on the basis of the human resources policy and sanctioned
strength of employees as approved by the board. The authority relating to transfer of and
disciplinary measures against the staff, except those at two tiers below the CEO, shall rest on
him, which he shall apply in accordance with the approved service rules. Besides, under the
purview of the human resources policy as approved by the board, he shall nominate officers for
training etc. The performance evaluation of the MD is conducted by the Board through various
reports like performance report (KPIs) of the Bank. Managing Director & CEO‟s performance is
measured by the KPIs of the Bank as MOU achievements as signed with the BIFD of Finance
Ministry.

Policy on Training of Directors


The policy on training of directors embraces the policy guidelines and circulars issued by the
regulatory authority to be conveyed to the directors through training, information, discussion
session and moral suasion to the corporate governance compliance issues. Banks arranged
sessions on different latest issues circulated by the Bangladesh Bank to raise awareness and to
improve understanding regarding the rules and regulations to be applied in the banking business.
Training on Basel-3 and AML & CFT are worth mentionable.

Directors' Expertise in Finance and Accounting

There are two directors in the Board of the Bank who are professionally qualified Chartered
Accountants. They are highly efficient in the field of accounting and finance. The other directors
are well conversant in business related discipline. 1.10 Attendance of Directors Director
attendance has been given at the end of this chapter. 1.11 Corporate Governance Reviewed by

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the External Auditors A CG compliance certificate taken from external auditor is attached at the
end of this chapter. The compliance of corporate governance is included in the directors‟ report
which is reviewed by Podder & Associates, Cost and Management Accountants.

2.6 RBL’s Vision, Mission, Goals and Objectives:

Vision:

Our Vision is to expand our loyal customer base by being known as the financial partner
of choice that constantly exceeds customer expectations.

Mission:

Develop long-term relationships that help our customers‟ achieve financial success.
Offer rewarding career opportunities and cultivate staff commitments.
Uphold ethical values and meet its customer‟s financial needs in the fastest and most
appropriate way and continue innovative works in order to achieve human resource with
superior qualities, technological infrastructure and service packages.

Business Objectives and Areas of Business:

Our business goals and objectives are set in our vision and mission statements. The business
strategies are identified and our strategic objectives are clearly stated in the Annual Report. As
the Board of Directors is the highest authority in relation to formulating the policies of the Bank
against the backdrop of the persisting laws and regulations, the board of directors set the business
target and work plan of the Bank.

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2.7 Porter’s Five Forces:
Porter‟s five forces, also known as P5F was created by Michael E. Porter in 1979, is a method of
examining the attractiveness of an industry or organization. It does so by looking at five forces
which act on that industry. These forces are determinants of that industry‟s or organization‟s
profitability. The five forces are

Figure 2.8 Porter‟s Five Forces

Threat of new entrants:


Advances in information technology have significantly reduced the barriers to entry in the
banking industry nowadays. Due to the adoption of Internet banking, distribution channels are
now not limited to traditional branch networks. Prospective customers all over the world could
access the internet and search for banks offering the highest interest rates or services with the
best features. Furthermore, new banks will also be able to compete by using IT to reduce their
cost and extend their distribution channels. Another factor that lowers the barrier to entry would
be the low switching cost, for example, the transfer of money from one bank to another. Being a
government controlled bank, Rupali Bank care less about the threats it gets from the new entrants

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Bargaining power of buyer/customers: Bargaining power of customers is relatively low as it is
partly controlled by the government. Here, switching costs are low for customers to leave Rupali
Bank Ltd and easy to gain banking services from other banks for the customers. Though there
are other Government banks such as: Janata Bank, Agrani bank etc, it is not operated on the basis
of customer bargains.ere are 11 Directors including Managing Director & CEO. The Managing
Director & CEO is an Ex-officio Director of the Board.

Threat of substitutes: In terms of threat of substitutes, the banking industry faces an increasing
number of substitutes even though deregulation has brought massive mergers and acquisition.
This is mainly because of the ability of modern telecommunications to eliminate distance that
often hindered foreign banks with no branch networks in local markets. Although there are not
many substitutes available. The government has not been able to come up with any innovative
saving schemes to attract the general public, therefore reducing the threat to of the substitutes to
the banking industry. So, the services that are provided by Rupali Bank are more or less the same
as other banks.

Bargaining power of suppliers/depositors: Generally, IT has increased the bargaining power of


depositors. The emergence of tele-banking and online banking has empowered depositors.
Depositors can quickly use the internet to determine which bank is offering the highest interest
rate and deposit their money there, while consumers do the opposite (lowest interest rate) in
searching for loans. Therefore, price sensitivity in the industry has increased together with the
number of substitutes available for depositors.

Competitive rivalry: Foreign and local banks now tend to compete more directly with one
another over the same group of consumers. Government banks are the direct competitors of
Rupali Bank Ltd that are striving for the same market share and customers. In addition, local
banks have a long-term trust relationship with their customers, which still provide them an
advantage. The local banks are fast to imitate and since the banking system is a very transparent
one, imitation is easy, thus increasing the fight between the competitors. Other local banks are
trying to capture the lower middle and the middle-middle class segment that are currently the
customers of these banks. With their relatively low interest rates charged to the customers and

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higher interest payback rates compare to Rupali Bank Ltd, they are strong threats as they have
very lower switching cost to the customers

2.8 SWOT Analysis:

SWOT analysis is a vital arranging instrument to assess the strengths, weaknesses, opportunities
and threats required in a venture or in a business deal. It includes indicating the target of the
venture or business deal and recognizing the inner and outside components that are positive and
feasible to accomplish the goals. The point of the SWOT investigation is to recognize the
internal factors (strengths and weaknesses) which are controllable and external variables
(opportunities and threats) which are uncontrollable.

Figure 2.9 SWOT Analysis

STRENGTHS:

Strengths are traits of the association that are useful to accomplish the hierarchical goals.
Strengths of Rupali Bank, Shawrapara Branch are as per the following.

They are entirely ethical about keeping banking issues


Bank has numerous appealing deposit plans such as: RMSS, FDs
They provide fast services at a very scanty cost.
They manage clients in a straightforward way and with no hidden cost.
They are very much strict about the privacy of client‟s records.

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If there are complaints from customers, they are very prompt about handling them.
They do not discriminate clients on the grounds of religion, sex or race at any stage.

WEAKNESS:

Weaknesses are qualities of the organization that are destructive of to accomplish the
organization destinations. A few weaknesses of Bangladesh Rupali Bank, Shawrapara Branch
are as per the following: The administration of this Branch says that they lead interest free
money saving schemes yet in real the Branch has not canceled interest. They just changed the
classification of their exchanges.

It has not yet been fruitful in contriving an interest free rate to put their funds.
As per the rules of Bangladesh Bank, the spread between the FDR rate and credit against
FDR rate ought not over 3%. Yet, the bank a few circumstances charge more than that
spread rate for advance.
RBL Shawrapara Branch don't have the essential expertise and prepared labor to assess,
screen, assess and review the tasks they are required to do.
Higher financing cost in the event of buyer advance.
Rules gave by Bangladesh Bank don't took after appropriately.
Absence of web based managing an account.

OPPORTUNITIES:

It refers to those external conditions which are useful to accomplish organization‟s targets. A few
chances of Bangladesh Rupali Bank are as per the following:

New talents are entering into banking sector. They can be used in different departments
and their knowledge and skills can be harnessed by training them well enough.
People are being motivated by new schemes and faster services. Introduction to new
technologies and ideas can be a profitable way.

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THREATS:

External elements can fill in as hindrance to accomplish the association destinations. A few
dangers of Bangladesh Rupali Bank are as per the following.

Quantities of local private banks and remote banks are expanding step by step which are
giving challenges to stay put in the market holding the position and they are consistently
advancing new services.
Other banks are involving markets by different alluring schemes and limited time
exercises.
Eager political condition in Bangladesh can turn into a genuine danger.
Negative portrayal to the administration and Bangladesh Bank.

2.9 External and Internal Environmental Analysis (PESTLE)

Figure: 2.10 External and Internal Environmental Analysis (PESTLE)

Political: Rupali Bank Ltd has been protected by the policies and regulations made by the
government. This organization has been able to remain in line towards the policies though it had
faced some trouble when it was about to lose 93% of its shares to Saudi Arabia during an
international bid. Other than that it has been operating its activities successfully and effectively.

Economical: Despite having some political turbulence, Rupali Bank has been operating with a
good economical strength. Though its EPS is not higher than other banks but its Net Profit

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Margin is increasing every year. The management has been working for a stable economic
condition with all the problems it faces and doing what this organization was meant to do.

Social: Rupali Bank tries harder to make sure that every individual of the society gets the same
chance of getting benefitted by the resources given by the organization. It has been identified as
the best in providing better customer service among the public banks of Bangladesh. Recently,
Rupali Bank came to collaboration with State –Owned Mobile Operator, Teletalk about giving
primary school stipend to the mothers of the students.

Technological: Rupali Bank has gone 100% automation by introducing CBS and all the
branches have been operating under this. Technological advancement is speeding up. With
improved communication and database, Rupali bank is now operating with higher efficiency
than before. Though it has some drawbacks with the installation of upgraded instruments, it is
serving the customers with the best way possible.

Legal: The government supports and regulates economy as market-based and open. Consumer
courts and consumer laws legislations are strict to prevent consumer crime and to provide
consumer protection. Banking sector needs to be very careful about that when designing
marketing communication strategies. The government has adopted some special laws and
measures to monitor the competition and to prevent the corporations for being monopolies.

Environmental: Environment and culture of the Bangladesh support performance based and
consumer friendly organizational cultures. Ethical Standards are high and organizations have to
participate actively in the corporate social responsibilities. The organizational environment in
Bangladesh is less diplomatic and more performance based due to economic recession and
intense competitive pressures.

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2.10 Internal Factor Analysis Summary (IFAS) & External Factor
Analysis Summary (EFAS)
Weight Ratings Weighted Comment
Factors (1 to 5) score
Strength(S)
Entirely ethical about keeping banking issues 0.10 3.10 0.31

Bank has numerous appealing deposit plans such as: RMSS, FDs 0.11 3.33 0.37

provide fast services at a very scanty cost 0.13 2.95 0.38

Clients in a straightforward way and with no hidden cost 0.06 4.30 0.26

Strict about the privacy of client‟s records 0.20 4.40 0.88


Weakness(W)
Contriving an interest free rate to put their funds. 0.10 4.10 0.41
Higher financing cost in the event of buyer advance 0.10 3.90 0.39
Rules gave by Bangladesh Bank don't took after appropriately. 0.10 4.20 0.42
Absence of web based managing an account
Spread rate for advance 0.10 2.90 0.29
Total 1.00 3.71

External Factor Analysis Summary (EFAS)


Factors Weight Ratings Weighted Comment
Opportunities(O)

New talents are entering into banking sector 0.15 3.20 0.48
Use their knowledge in different department 0.20 2.96 0.60
People are being motivated by new schemes and faster services 0.10 3.15 0.315
Introduction to new technologies and ideas can be a profitable way. 0.10 4.10 0.41

Threats (T)

Eager political condition in Bangladesh can turn into a genuine danger. 0.11 4.40 0.48

Negative portrayal to the administration and Bangladesh Bank. trance 0.11 4.20 0.46
is not positive for the venture part
Possibilities of more stringent regulation 0.15 4.30 0.65
Lack of flexibility to adopt to any change 0.08 3.10 0.248
Total 1.00 3.64

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2.11 Strategically Factor Analysis Summary
SFAS Weight Rating Weighted Short Intermediate Long Comments
Score
Strength:
Bank has numerous appealing 0.10 3.33 0.33  Based on the
deposit plans such as: RMSS, FDs Management

Provide fast services at a very 0.13 2.95 0.38  Financial


scanty cost conditions

Weakness:
Higher financing cost in the event 0.10 4.20 0.42  Geographical
of buyer advance area

Spread rate for advance 0.10 2.90 0.29  Capturing the


market
position
Opportunity:
New talents are entering into 0.15 3.20 0.48  Increase
banking sector service
quality
Use their knowledge in different 0.10 4.10 0.41  Increase

department customer
number
Threats:
Possibilities of more stringent 0.15 4.30 0.65  Weak
regulation management
condition

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2.12 TOWS MATRIX:

Strength Weakness
IFAS (i) Large customer base (i) Insufficient focus on
(ii) Management quality customer
knowledge of service and mortgage
industry banking
EFAS (ii) Overall market share
needs to grow
opportunities

Opportunity SO Strategies WO Strategies


(i) More experienced 1) (S1, W1) 1) (W1, O1)
and managerial As they have large customers By focusing on quality customer
knowledge they should focus on quality service more experienced and
(ii) Arising investment customer service. managerial knowledge can gain.
opportunity for 2) (S2, W2) 2) (W2, O2)
export- import loans
By management knowledge By growing market share
industry they can grow overall export-import loans opportunity
market share. arising investment.

Threats ST Strategies WT Strategies


(i) Strong community 1) (S1, T1) 1) (W1, T2)
bank competition By utilizing their large customer By focusing on quality customer
non-bank base, they can compete with service inefficiencies within the
competition non-bank competition. operations of the bank can
(ii) Inefficiencies within overcome.
the operations of the 2) (S2, T2) 2) (W2, T1)
bank. By management knowledge of By growing market share
industry can solve inefficiencies inefficiencies within the
within the operations of the operations of the bank can
bank. overcome.

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PART-3 (TOPIC PART)

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3.1 Review of Literature
During the three months internship program at Shawrapara Branch, almost all the desks have
been observed more or less. This internship program, in fast, has been arranged for gaining
knowledge of practical banking and to compare this practical knowledge with theoretical
knowledge. Comparing practical knowledge with theoretical involves identification of weakness
in the branch activities and making recommendations for solving the weakness identified.
Though all departments and sections are covered in the internship program, it is not possible to
go to the depth of each activities of branch because of time limitation. So, objectives of this
internship program have not been fulfilled with complete satisfaction. However, highest effort
has been given to achieve the objectives the internship programmed. During the internship, it is
found that the branch provides all the conventional banking services as well as some specialized
financing activities to the economy. General banking services department is the largest
department of the branch in terms of manpower and profit earning. In this year, it earns more
than 60% of branch‟s total profit. Thus by providing this various services, Shawrapat Branch,
RUPALI Bank is playing an important in the banking system and in the payment system of
Bangladesh.

3.2 General Banking at Rupali Bank Ltd


I have done my internship in Rupali Bank Ltd (RBL), here I have gathered tremendous amount
of knowledge and got an in depth idea of the banking process and specifically about Home Loan.
Internship under an industry is basically done for the wellbeing of student for gaining better
understanding the scenario of real business. Internship is a portion of the Bachelor of Business
Administration (BBA) program, this program is set to develop a student for achieving success in
future and to connect the student with the real world, this program acts as a simulation for
student, where the student needs to gain a practical experience about a business or firm which
facilitates the connection between the study and experience. This report is prepared according to
the knowledge I have gathered during the period of my internship. Participating in work related
activities, questioning officials and observing gave me an in depth knowledge about the credit
departments.During my practical orientation I was placed in Rupali Bank Limited. First I was
placed in Shawrapara Branch. I have completed General Banking and some exposure in Advance

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in this branch. General Banking is the starting point and main function of all the banking
operations it is the department which provides day-to-day service to the customers. Every day it
collects deposit from the customers by allowing broking interest rate, meets their demand for
cash by honoring Cheques and lend it to the customers against ending interest rate. Lending
interest rate in higher than borrowing interest rate, this is the profit for the bank.

3.3 Products and Services:


A. Deposit Product
Current Deposit
Saving Product
RDPS
FDR etc
B. Lending Product
Lone General
Project Loan
Transportation Loan
HouseBuilding Loan
Small Business Loan
Personal Loan , etc
C. Money Transmission Product
Demand Draft
Pay Order
Telegraphic transfer
Letter of credit , etc

Lending Products:

Bank has its own principle about the credit sanctioned or loan to the customers, but lending
product of a bank or of a branch is equal important to verify the outstanding at the end of any
fiscal year. Every bank pays special attention about their lending products, because these
products are handed over on a regular basis.

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What is meant by loan?

In real life, individual or business institutions (business /non business or government or non
government) face some situation when they feel the necessity of collecting , achieving , or using
something for which they may not have adequate required purchasing power. On the other hand
there are individual or institution that have surplus fund after fulfilling both of their requiring and
investment requirements. By way of deposit bank takes these surplus funds in its own custody.
Bank again temporarily transfers these funds for a specific duration in exchange of some interest
or profit to those who do not have Required purchasing power but have capacity to utilize
borrowed funds for some productive and profitable purposes or projects. Here temporary
means that the will return the provided purchasing power as loans after some time as per the
terms of the contract. Bank can provide loan in different ways loan can be in cash or in non cash
form. Loan can be defined as the leading of a sum of money by a lender to a borrower to be
repaid with a certain amount of interest. If a bank gives its resources temporarily under certain
conditions and for a specific duration, it will be called loan.

3.4 House Building Loan

A house building loan is a home financing solution that enables one to build a new home or carry
out renovations on an existing property. A building loan is where a retention becomes applicable
on the loan amount and the funds are advanced to the borrower in stages/ progress payments
during the construction period of the dwelling and improvments. Once the home is built, the
buidling loan reverts to a normal Home Loan.This loan is provided against 100% cash collateral,
besides; the land and building are also mortgaged with the bank interest rate is 13% for
Commercial loan and General loan.

Benefits
 One can build one‟s dream home to one‟s own specifications
 One could buy in selected new residential development with a choice of design,
price and finishes that will suit one‟s needs

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The Building Loan is suited to:
 Build or make alterations to one‟s home
 Redecorate one‟s home
 Increase the valueof one‟s property

Qualifying Criteria for House Building Loan:


 Within age to contract legally, must be 18 years or older
 One must possess a clear credit record
 The finance must be used to build or alter a residential property
 The building loan is only a

Exclusions:
 Building loans will not be granted on:
 Real right portions in any development
 Share blocks
 Timeshares
 Sectional Title developments
 Leasehold properties
 Non-Residential buildings
 Fractional Ownership

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3.4.1 Classification of House Building Loan of RBL

Mainly Rupali Bank Ltd.providing three kinds of House Building Loan, they are:

Commercial House Building Loan

General House Building Loan

Staff House Building Loan

Figure: 3.1: Classification of House Building Loan of RBL

Commercial House Building Loan:


Anyone who is planning to build a home for selling flats, or purchasing business property such
as retail space, a child care facility, Restaurant, Hotel, Medical Centre.

Salient Features:
Amount of Loan:
 Minimum one lakh maximum 90% of the cost of property

Eligibility:
The scheme would provide finance to individuals/business enterprise having minimum net
annual income of 1 Lac per annum against mortgage of unencumbered immovable property
situated in urban areas. Business enterprises, professionals and self-employed must have a
minimum standing of 3 years in the respective line of activity

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Purpose:
 For meeting their business and/ or any personal need/ expenditure

Security:
Registered/ Equitable mortgage of unencumbered residential house/flat/ commercial or industrial
property with a clear marketable title situated in the Urban areas only and which stands in the
name and profession of the borrower. The property should be vacant

Rate of interest
 General hose building loan interest rate is – 13%

Repayment: Within 10-15 years

Margin: Nil

Processing charges: 0.25% of the loan amount sanctioned would be charged as processing
fees

Apply Procedure for Commercial House Buildng Loan:


 Duly filled application form with photograph
 Age proff (Passport, Birth certificate, any other certificate from statutory authoirty)
 Residence proof (Passport, Driving License, telephone bill, electricity bill, any other
certificate from statutory authority)
 Education qualifications
 Last 3 years income tax returns ( self and business)
 Last 12 months bank statement (self and business)
 Processing fee cheque in
 Photocopy of titile documents of the property, approved plan etc.

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Average Loan Approved period
Average loan approved period of a commercial housing loan is 60 days.

Rental return
A commercial property generally offers a higher return on investment (ROI) compared to a
residential property.

Penalties and Charges


 Processing charges
 Legal charges
 Delay in payment penalty – 20% might be of the total balance
 Pre-payment penalty
 Any other penalty or charge

General House Building Loan:


Anyone who would like to make alternations or improvements to one‟s existing home. General
house building loan allows to purchase

Salient Features:
Amount of Loan:
To be purchased/ constructed, the maximum amount of loan to be sanctioned under the scheme
would be lowest 35 lakhs and highest 85 lakhs of the staff.

Eligibility:
When one applies for a house building loan, one‟s eligibility is primarily dependent one‟s
income and repayment capacity.

 One‟s age financial position, credit history, credit score, other financial liabilities etc
 One can enhance one‟s eligibility for a home loan by adding an earning family
member as co-applicant
 Availing a structured repayment plan

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 Ensuring a steady income flow, regular savings and investments.
 Furnishing details of one‟s regular additional income sources

Security:
 Primary- mortgage of the house property to be purchased/ constructed.
 Collateral- CPF, Pension etc.

Rate of interest
 General hose building loan interest rate is – 13%

Repayment:
 End of one staff‟s job life.

Processing charges:
 Collected at the time of documentation

Apply Procedure for House Buildng Loan:


 Application form with photograph duly signed
 Identity, residence and age proof
 Last 6 months‟ bank statements
 Processing fee cheque
 Proof of business existence
 Business profile
 Education qualification certificate and proof of business existence
 Last three years‟ income tax returns with computation of income

Average Loan Approved period


 Average loan approved period of stall housing loan is 60 days.

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Penalties and Charges
 Processing charges
 Legal charges
 Delay in payment penalty
 Pre-payment penalty
 Any other penalty or charge

Staff House Building Loan:


Staff house building loan allows to buying residential property. One is generally limited to
purchasing a house, apartment or unit.

Salient Features:
Amount of Loan:
To be purchased/ constructed, the maximum amount of loan to be sanctioned under the scheme
would be lowest 35 lakhs and highest 85 lakhs of the staff.

Eligibility:
Applicant must have to be JBL‟s employee and his job has to be permanent job. Any staff can
apply for loan after five years of his job

Security:
 Primary- mortgage of the house property to be purchased/ constructed.
 Collateral- CPF, Pension etc.

Rate of interest
 General hose building loan interest rate is – 5%

Repayment:
 End of one staff‟s job life after five years of job life
Installment system:
 60% house loan deduction from the salary

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Guarantor: One

Processing charges:
 Collected at the time of Documentation

Apply Procedure for House Buildng Loan:


 One can build one‟s dream home to one‟s own specifications

Average Loan Approved period


 Average loan approved period of a general hosing loan is 60 days.

Penalties and Charges


 Processing chare - 0.50% - 1.00% of the loan amount
 Delay in payment penalty – 2% plus applicable tax if any
 Pre-payment penalty – Nil
 Any other penalty or charge

Numbers House Building Loan provided by RBL in 2013 to 2017 to their staffs
2013 2014 2015 2016 2017

Commercial House Building 13 17 21 25 31


Loan

General House Building Loan 36 41 50 56 60+

Staff House Building Loan 10 16 19 21 35

Table 3.2: House Building Staffing Loan 2013- 2017

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3.5 Rate of Interest:
House Building Loan

This loan is give for the construction of building house. It is gives for generally four years at
equal monthly installment. This loan is not provides frequently. Rate of interest 13%

Staff House Building Loan:

120 times of BASIC salary is provided as RBL. Bank rate + 1 % interest is charged to the loan
amount. Repayment adjusted from their monthly salary. Repayment is made at equal monthly
installment.

3.6 Process of Home Loan Sanction:


Step-1: Sanctioning by the competent authority

A secured advance may be grant to a party only after getting a limit sectioned from the
competent authority.

Step-2: Loan/Advance Proposal

For obtaining a loan/advance the party must make an application in standard form in writing to
the branch where he maintains his operative account. After receiving the application from the
party, the branch manager will take immediate steps to compile report regarding the party based
on the following sources of information:

Personal investigation
Confidential supports from
Other banks,
Chamber of commerce
CIB from Bangladesh bank as the earnable.
Trading account P/C, B/S. M/A if‟ any and other documents submitted by the party.
The average balance and the present maintained in the account.
The nature of operations during the last six months and the date of opening account.

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Step-3: Preparation of limit proposals

The branch, may prepare a limit proposal after being fully satisfied with the following points:

The financial position of the party.


Purpose for which advance is required.
Nature of securities offered.
The payment arrangement.

Step-4: Renewal Proposal:

Sometimes Bank renews the proposal by considering customers goodwill, capacity, capital,
character, etc for providing loan &advance.

Step-5: Approval by Head Office and Branch responsible.

Limit proposal sent to HO.


Sanction/reject
Receive the limit section advice.

Step-6: Disbursement of loan.

After completion of documentation bank makes disbursement. How loan will be disbursed is
generally mentioned in the derogation. It is customary that term loans are disburse on installment
basis and short term loans are transfer to borrowers account. Borrowers can withdraw from his
/her account when deem it necessary. It is necessary to audit the credit to verify whether
credit has been made by following all the guidelines of credit set in the credit policy.

Step-7: Loan monitoring and administration.

The loans are repaid in installment .This installment is according to bank directives some loans
are repaid all at time. If any loan is not repaid then notices are served to the customer. Sometimes
legal action is also for recover the loan.

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Part-4: Actual Task

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4.1 Personal Observations:
In this part I have tried to present my personal observations from general banking department of
this branch. I had an opportunity to be acquainted with the practical baking prevailing in the
shawarapara Branch, rupali Bank Limited. The knowledge, which has been acquired in my
Internship Period, I have tried my best to show in this report.
Practical desk work
Face to face conversation with the officer
Direct observations
Face to face conversation with the client
Consultation with the following persons
Browsing the website of RBL

4.2 Secondary Learning:


Placement Area Working Days

1.Account Opening Section 4 weeks

2.Entry of Utility Bills 3 weeks

3.Local Remittance 1 week


Pay Order (PO)
Demand Draft (DD)
Pay Slip
4.Clearing Division 3 days

5.Foreign Remittance 2 days

6.RBL Remittance 3 days

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7.Others:
Fill-up Debit card forms
Cheque book requisition
Fill up signature cards
Filling up Thank you letter 3 weeks 2 days
Entry of Balance Confirmation
Entry of Dhaka University admission registry:
Write down the Debit and Credit Voucher
Update customer‟s information
Address change & Name correction of the customers
Total 13 weeks
Table 4.1: Secondary Learning
Account Opening Section:
I have worked in account opening section of Rupali bank ltd,shawarapara Branch. There I
worked for many days. I have filled up accounts opening forms. I have collected
National ID card,
Trade License
Photos of A/C holder and nominee‟s useful information.
If clients could not fill up the form, I helped them in that. And if they needed to know how to
open an account I helped them giving the right information.
Utility Service:
Besides normal banking operation, I have work on utility service section. There I entered the
electricity bills,
telephone bills, and
gas bills on Excel.
On excel work sheet First I have made a table and I have put formula there. After taking the bills
Mr. Kabir Ahmed gave me bills bundle. Each bundle contains 30 bills. I collected the bills and
entry the bills. On the excel sheet I used to put bill numbers, vat, and net bill. Like this I have
worked there for around 3 weeks.

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Local Remittance
Local remittance includes Pay order, Demand Draft, Pay Slip
Pay Order (PO)
I have fill up lots of Pay Order. The pay order is used for making a local remittance to the local
creditor. In a pay order I filled up payee‟s name, receiver name, amount of the money, date and
RBL has their accounts no. when they are endorsing the pay order, has to put that account no.
with whom I work in local remittance section Mr. Chironjib Hawladar told me the account no. I
put that on pay order and this is how I filled up pay order.

Demand Draft (DD)


Demand draft as same as Pay Order.The basic difference is that which is issued inside Dhaka is
called Pay Order and Outside Dhaka is known as Demand Draft. And I filled up the same things
I did with pay order.

Pay Slip
I have filled up a pay slip form. To fill up a pay slip I have collected applicant‟s Name, address,
applicant‟s relation with the account holders. And match with the given information of the
accounts holder‟s nominee‟s information. If both information matched, then after filling all the
information I gave the form to Mr.Chironjib Hawladar. This is how I work in local remittance
section for many days.
Clearing Division
I spent one week in clearing division where my supervisor was Mr. monir hossain. In this
department, I had to collect cheques from the clients and that I had to check some important
matters, like
Name of account holder is similar both in the cheque & deposit slip.
Amount in the cheque & deposit slip must be similar in word and in figure
Date in the cheque may be on and before (not more than six months before back)
clearing house data.
Cheque must be signed
Bank and Branch name of the cheque its number and data in the deposit slip

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Account number in the deposit slip must be same.

Foreign Remittance:
I have worked in foreign remittance for one week. I have filled up the client‟s/customers
information in the remittance payment form, and they are
The Secure and hidden number in the remittance payment form
To write the NID number on the form I collected the clients NID (National Identity Card)
I have collected payment slip, debit voucher
After verifying all the information my supervisor gave me the slip and I collected the
signature on that form from the remittance officer and the branch manager.
There I worked with Mrs. Poly akter. She helped me how to fill up remittance form and what
information needed to collect.

RBL Remittance/ RB online solution


RBL Remittance is online solution. This solution is used from one branch to another branch and
one bank to another bank. In this section I helped Mrs. Sonia Mozzamel by collection the cell
number of the clients and matched that number with the written cell number on the cheque. After
confirming the number Mrs. Sonia Mozzamel sent a PIN code to that number. Then I collect that
no. from the clients and gave it to Mrs. Poly akter.

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4.3 Others Activities:
Fill-up Debit card forms
I‟ve filled up debit card forms. Debit card forms are filled up for ATM card. Here I have filled
up account holders name in capital, address, mailing address, account number, and cell number. I
have filled so many debit card forms in RBL with Mrs. Nila.

Cheque book requisition


I have filled up lots of cheque book requisition of customers. I have written accounts holders
name, account number, and their cell number in the cheque requisition form. And I have register
that cheque book serial in the cheque book requisition register book.

Fill up signature cards


I have filled up signature cards also. I have collected an account holders name, signature,
attached two copy of passport size photos and two signature on the signature card, I have written
the date of that day‟s. then verified the card with the branch manager‟s signature.
Filling up “Thanks” letter:
Whoever opens accounts in RBL, they provide each of the accounts holders a “Thanks” letter.
I filled up more than 400 thanks letter. In the thanks letter I wrote the applicants name, account
no., cell no., address. There I worked with Mrs Nile.
Entry of Dhaka University admission registry:
I have entered Dhaka University admission registry 2017-2018 for one weeks. There in the RBL
computer there is given university registry software. There I put PIN number, AID number,
serial number, and student cell number from the student registry form. Here I have worked with
Mrs. Lima Khanum.
Entry of balanced confirmation:
I have entered 551 balanced confirmation information in the Balanced confirmation register book
in one week. There I had to write the serial no. name and address of the account holders. And
whether its confirmed or not.
Jamal Hossain the Manager of RBL shawarapara branch, He guided me how to register balance
confirmation on the register book. This work was given by him.

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Write down the Debit and Credit Voucher
I have filled up debit cash voucher. Debit cash voucher is needed with the foreign remittance
form. There I have written receiver name (who is withdrawing the remittance money him name)
on the debit cash voucher, amount, and date.
Update customer’s information
Besides that, I have provided information to the clients of RBL shawarapara branch. Where is
accounts opening section, in which section they should to for pension, and what is necessary to
open a bank account, and so many.

I feel that my experience in RBL is something very positive that boost my confidence up. This
company has enough individual corners from where I feel experience is a must thing to gain,
seniors at this place has always been very helpful to provide enough guidance to gain experience.

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Part 5: Research Part

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5.1 Problem Statement:
The purpose of the report is to know about Home Loan Process of Rupali Bank Ltd and find out
the problem of loan disbursement.

5.2 Background of the Problem


The main business of a bank is credit. Bank lends individual, Private sector as well as public
sector enterprise. Every bank follows its own process for credit management. Commercial bank
usually follows committee or sequential process of credit approval. After credit approval and
completion documentation bank make disbursement. How long will be disbursed is generally
mentioned in the credit negotiation. It is customary that term loans are disburse on installment
basis and short term loans are transfer to borrowers account. Borrowers can withdraw from his/
her account when deem it necessary. After disbursing credit, credit officer‟s bank is to
continuously monitor and review the performance of borrowers. Recovery of credit is the last
step of credit management process. It is expected that loan will be repaid after its tenure. But
problems arise when loan becomes a problem loan. Banks are using many alternatives for
recovery of problem loan.

5.3 Project timeline:


Activity Schedule
Understanding the concept and Preparation of objective 7 days
Submission of proposal and Preparation of questioner 15 days
Primary data collection(Interviews) 10 days
Analysis the data, solution and Preparing the report 30 days
Project timeline

5.4 Budget Information:


Budget item Amount
Transport 1000
Papers and print 350
Telephone 200
Others 250
Total 1800

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5.5 Choosing qualitative or quantitative research methodologies:
“My research is dictating the kinds of research methodologies I use to underpin my work and
methods I use in order to collect data. If I wish to collect quantitative data I use probably
measuring variables and verifying existing theories or hypotheses or questioning them. Data is
often using to generate new hypotheses based on the results of data collected about different
variables. Many more people fell very happy to use quantitative data as many people feel safe
only with numbers and statistics. However often collections of statistics and number crunching
are not the answer to understanding meanings, beliefs and experience, which are better
understood through qualitative data. And quantitative data it must be remembered are also
collected in accordance with certain research vehicles and underlying research question. Even
the production of numbers is guided by the kinds of questions asked of the subjects, so is
essentially subjective, although it appears less so than qualitative research data”.

5.6 Qualitative research:


“Qualitative research carried out when I wish to understand meanings, look at , describe and
understand experience, ideas, beliefs and values, intangibles” .
Using qualitative and quantitative research methods together:
“This is common approach and helps you to triangulate to back up one set of findings from one
method of data collection underpinned by one methodology with another very different method
underpinned by another methodology”.

5.7 Qualitative research methods:


“Interviews enable face to face discussion with human subjects. If I am going to use interviews I
will have to decide whether I will take notes, tape the interview rely on my memory or write in
their answers. If I decide to interview I will need to draw up an interview schedule of questions
which can be either closed or open questions or a mixture of such as name, numbers, and so on.
The problem with closed questions is that they limit the response the interviewee can give and do
not enable them to think deeply or test their real feelings or values. If I ask question such as‟
what you think about the bubble of share market‟ this would give me very good idea of the

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variety of ideas and feelings people have, it would be unable to them to think and talk for longer
and so show their feelings more fully. If I use to interview:
1. Identify the sample.
2. Draw up a set of question.
3. Do start with some basic closed question
4. Don‟t ask leading question
5. Try them out with a colleague
6. Carry out interviews and keep notes”

5.8 Research Approach (Deductive or inductive)


Research approaches are discussed and late differentiated in the following figure:
Deduction Induction Abduction
Logic In a deductive inference, In an inductive inference, In an adductive inference, known
when the site is true, the known site is used in generate site is used to generate testable
conclusion must also be untested conclusions. conclusions.
true.
General Generalizing from the Generalizing from the specific Generalizing from the interactions
general to the specific. to the general. between the specific and the
liability
general.
Use of Data collection is used to Data collection is used to Data collection is used to explore
evaluate propositions or explore a phenomenon, a phenomenon, identify themes
data
hypotheses related to an identify themes and patterns and patterns, locate these in a
existing theory. and create a conceptual conceptual framework and test
framework. this through subsequent data
collection and so forth.
Theory Theory falsification or Theory generation and Theory generation or
verification. building. modification; incorporating
existing theory where appropriate
to build new theory or modify
existing theory.
Table: 5.1 Research Approaches

5.8.1 Deductive Approach:

“A deductive approach is concerned with developing a hypothesis based on existing theory, and
then designing a research strategy to test the hypothesis. It has been stated that “deductive means
reasoning from the particular to the general. If a causal relationship or link seems to be implied
by a particular theory or case example, it might be true in many cases. A deductive design might
test to see if this relationship or link did obtain on more general circumstances.

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Deductive approach can be explained by the means of hypotheses, which can be derived from the
propositions of the theory. In other words, deductive approach is concerned with deducting
conclusions from premises or propositions”.
According to Monette et al (2005 p34):
“Deduction begins with an expected pattern “that is tested against observations, whereas
induction begins with observations and seeks to find a pattern within them”.
Deductive research approach explores a known theory or phenomenon and tests if that theory is
valid in a given circumstances.

Figure 5.11: Deductive Approach


Source: John Dudovskiy (2014)

5.9 Method of Data Collection:

There have various kind of data collection method for interview, , questionnaire all methods are
helpful for data collection. For my report I think the questionnaire method is best method for
successfully complete my project. By this method I set some questions for the target people I
took their opinion from them.

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5.9.1 Primary Data Collection Process:

The decisions to get the results of primary data research depend on the type of research study
being chosen. Primary data collection has benefits as it provides an opportunity to get a better
insight into what the researcher expects. It is more concerned with the practical aspect rather than
the academic aspect in a project. Method of primary data collection depends on the type of
research being undertaken. There are mainly three methods of conducting a primary survey.
They are:

Survey method
Interview method
Observation method

Unlike the surveys which are generally associated with questionnaires; interviews are also
carried out with questionnaires where the questions are directly quoted to the interviewee rather
than disseminating the papers or surveys.

According to Arnold et al (1991):

The interview is, in achieve, often used as a „talking questionnaire‟.

For the purpose of this research report, the researcher has chosen to go forward with the
interview (face-to-face semi-structured) and survey questionnaires methods to collect the
primary data which has been used. All data gathered from semi-structured interviews have been
compiled and interpreted to get the best results.

Interview Respondents:

For getting a good result, a strategic approach has been taken by the researcher. Data collections
on several surveys reveal that a high proportion of respondents reacted favorably to being
interviewed and were willing to be re-interviewed. A major element was pleasure in the
relationship with the interview, which was sufficient to make even questioning on delicate
subjects enjoyable.

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Transcription of Interviews:

Transcription of interviews is an imperative part of any research; as a researcher, it is a rough


task to spend time to write out each interview session. However, to take out the relevant
information from each conference, full attention needs to be paid in what the participant is
saying. Interviews have been conducted through face-to-face sessions. Transcribing each
interview session has been very time consuming. The data which has been relevant have been
compiled. The results and analysis will be further discussed in the next chapter.

Research Participants:

The researcher has taken face-to-face semi-structured interviews of different those are not
making profit from share market. Likes students, employee, businessman and general people

Who are directly involved with stock market? As the data has been established in chapter three,
the method for the qualitative and quantitative data analysis; an inductive approach has been
adopted which include the content analysis and the narrative analysis as part of the research
endeavor. And the method for the quantitative data analysis; a deductive approach has been
adopted which include the sampling analysis as part of the researc h.

Population and sample:

An example is an aggregate number of subset people groups, things, or occasions from a bigger
populace those specialists gather and investigate to make deductions. To relate to the populace
well, an example ought to be self-assertively gathered and viably vast.

A populace is an aggregate number of accumulation people groups, things, or occasions about


which you need to manufacture derivations. It is not generally appropriate or conceivable to
analyze each individual from a whole populace. support.minitab.com, (2017)

In this report specialist select review survey for 20 people groups and for utilizing the
dichotomous and liker scale for this report. in this report populace estimate is 20 and furthermore
specialist chooses the precise stratified bunch inspecting for his examination report.

Survey Questionnaires Participants:

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In an effort to get the desired results, another strategic approach has been taken by the researcher.
It has been possible to identify the relevant reasons of Home Loan. The participants represent
here, are from the20 employees, 10 Customers. It has been possible from the researcher‟s part in
making 15 survey questionnaires. A total number of ten participants took part in filling-up the
survey questionnaires forms.

5.10 Framework Analysis:


Framework analysis is flexible during the analysis process in that it allows the user to either
collect all the data and then analyze it or do data analysis during the collection process. In the
analysis stage the gathered data is sifted, charted and sorted in accordance with key issues and
themes.

5.11 Reliability and Validity:


Unwavering quality and legitimacy of research is essential and it is especially critical for the
analyst to comprehend the two terms from alternate points of view.

Unwavering quality:

Guaranteeing unwavering quality and the reliability is unavoidable in both the subjective and
quantitative research for achieving the point. In an intend to do the examination in a smooth way
alongside the prerequisites of research process, it is subsequently important to have data that is
solid and have been assembled from confided in sources. As per Stenbacka, 2001: "The idea of
unwavering quality is notwithstanding deceptive in subjective research, if a subjective report is
talked about with dependability as a foundation; the result is somewhat that the examination is
no great".

Legitimacy includes the whole trial idea and builds up whether the outcomes got meet the
majority of the necessities of the logical research strategy. The portrayal, investigation, and
clarification of information in both subjective and quantitative research are pretty much relying
upon the legitimacy of research. Scientists don't generally incline toward the term legitimacy to
be material to look into. Numerous analysts give to the term of reliability and quality which are
synonymous to legitimacy in subjective research. (Davies and Dodd 2002, Lincoln and Guba

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1985, Seale 1999, Stenbacka 2001). As it were, legitimacy can be inferred that it is up to the
scientist to consider information that is dependable and substantial with the end goal of the
examination contemplate.

5.12 Moral Consideration:


As a feature of an examination think about, moral issues should be considered. As indicated by
Creswell, 2009: Ethical issues can be worried at any progression of the examination study and it
ought to be watched and looked into. In this exploration report, semi-organized meetings and
study polls have been considered as a major aspect of essential information accumulation, which
involves the subject of how the respondents or members are to be drawn closer. To maintain a
strategic distance from any contention, all information gathered amid finishing the exploration is
to be utilized just for this reason and This exploration report is totally fair-minded

5.13 Research Limitations:

There are certain limitations regarding the studies that are summarized below:

Deficiencies in data required for the study.


Field practice varies with the standard practice that also created problem.
Time provided for conducting the study is another important constraint.

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5.14 Data Analysis and Interpretation
After collecting all the data, I had analyzed all the data individually. I had analyzed the data by
myself. Then I had made the comparison of data and explain it through graph, chart, table, etc. I
used MS Excel to analyze data.. Based on my analysis I have made findings, limitation,
recommendation and conclusion. Finally, I will present my research in front of audiences.
Hypotheses Text’s test
The following formula has been followed:
We know that,
Z test=
X 
Where, / n
µ = mean value
n = sample size
σ = Standard deviation
X = Average

Hypothesis Scale
Customer opinion Weighted Score

Strongly Disagree 1

Disagree 2

Neither Agree nor Disagree 3

Agree 4

Strongly Agree 5

Table 5.7: Hypothesis Liker Scale

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Analysis Respondent Age:

AGE

20-25 26-30 31-40 40-45 46 or Above

3%

13% 10%

34%
40%

Figure 5.4: No. of respondent‟s age

Interpretation
From the above table it is clear that the respondents were chosen from all the age groups. There
were 3% respondents from the age group ranging between 20-25 years; 10% of the respondents
between 26-30 years; 40% of the respondents between 31-40 years; 34% of the respondents
between 40-45 years; 13% of the respondents falling above the age of 41 years. It‟s significant
that the number of respondents in the age group of 26-40 years is optimum
Types of Housing Loan Taken:

Types of Housing Loan

Purchase Construction
Renovation Conversion Loan
3%

23%
47%

27%

Figure 5.5: No. of Types of Loan Taken

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Interpretation
From the above table it is clear that the respondents were chosen from types of loan taken. There
were 47% respondents from the Purchase group; 27% of the respondents of Construction; 23%
of the respondents of Renovation; 23% of the respondents of construction; 3% of the respondents
Conversion Loan. It‟s significant that the number of respondents in Types of Loan of Purchase
group is optimum.

5.15 Hypothesis Development:

To consistent with study I have developed some questionnaires. The questionnaires are as
follows:
1. H1: Duration taken by your bank to sanction a home loan is Quicker
2. H2: Reason for taking Home Loan from Rupali Bank is lower Interest Rates
3. H3: Repayment option of Installment is very flexible of this bank
4. H4: The Environment of the branch and attitude to customer very Friendly.
5. H5: The Home Loan Product of Rupali Bank is very innovative

5.16 Hypothesis Testing:


H1 H2 H3 H4 H5
1.Strongly Disagree 5 2 2 3 1
2.Disagree 9 1 1 2 3
3.Neighter Agree nor Disagree 2 4 4 6 1
4.Agree 11 9 13 8 12
5.Strongly Agree 3 14 10 11 13
Total 30 30 30 30 30

Average X   6 6 6 6 6

Standard Deviation (s) 3.87 5.43 5.24 3.78 6


Z- Test value 4.95 3.53 3.66 5.07
Table 5.8: Hypothesis Testing

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5.17 Data Analysis and Graphical Representation:

1. Ho: Duration taken by your bank to sanction a home loan is not Quicker

HA: Duration taken by your bank to sanction a home loan is Quicker


H0: µ = 2.5
HA: µ ≠2.5
n= 30 Level of Significance: 0.05
Here, X  =6

Standard deviation=3.87

Z test = X   = 6  2.5 = 4.95


s/ n 3.87 / 30

Duration taken by your bank to sanction a home loan


is Faster

Strongly Disagree Disagree

Neighter Agree nor Disagree Agree

Strongly Agree

10%
17%

36% 30%
7%

Figure 5.6: Duration taken by your bank to sanction a home loan is Faster

The critical value of z at α=5%=0.05 level of significance is | | (for two tailed


test Since Z cal> Z Tab (4.95>1.96), the null hypothesis in not accepted. So at 5% level of
significance, it can be said that Duration taken by your bank to sanction a home loan is Faster

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2. Ho: Taking Home Loan from Rupali Bank is not lower Interest Rates

HA: Taking Home Loan from Rupali Bank is lower Interest Rates
H0: µ = 2.5
HA: µ ≠2.5
n= 30 Level of Significance: 0.05
Here, X  =6

Standard deviation=5.43

Z test = X   = 6  2.5 = 3.53


s/ n 5.43 / 30

Reason for taking Home Loan from Rupali Bank is lower


Interest Rates

Strongly Disagree Disagree


Neighter Agree nor Disagree Agree
Strongly Agree

7% 3%

13%
47%

30%

Figure 5.7: Reason for taking Home Loan from Rupali Bank is lower Interest Rates

The critical value of z at α=5%=0.05 level of significance is | | (for two tailed


test Since Z cal> Z Tab (3.53>1.96), the null hypothesis in not accepted. So at 5% level of
significance, it can be said that Taking Home Loan from Rupali Bank is lower Interest Rates

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3. Ho: Repayment option is not very flexible of this bank

HA: Repayment option is very flexible of this bank

H0: µ = 2.5
HA: µ ≠2.5
n= 30 Level of Significance: 0.05
Here, X  =6

Standard deviation=5.24

Z test = X   = 6  2.5 = 3.66


s/ n 5.24 / 30

Repayment option is very flexible of this bank

Strongly Disagree Disagree


Neighter Agree nor Disagree Agree
Strongly Agree

7%
13%
33%
3%

44%

Figure 5.8: Repayment option is very flexible of this bank

The critical value of z at α=5%=0.05 level of significance is | | (for two tailed


test Since Z cal> Z Tab (3.66>1.96), the null hypothesis in not accepted. So at 5% level of
significance, it can be said that Repayment option is very flexible of this bank.

4. Ho: Repayment option is not very flexible of this bank

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HA: Repayment option is very flexible of this bank

H0: µ = 2.5
HA: µ ≠2.5
n= 30 Level of Significance: 0.05
Here, X  =6

Standard deviation=3.78

Z test = X   = 6  2.5 = 5.07


s/ n 3.78 / 30

The Environment of the branch and attitude to


customer very Positive

Strongly Disagree Disagree


Neighter Agree nor Disagree Agree

11%
7%

39%
14%

29%

Figure 5.9: The Environment of the branch and attitude to customer very Positive

The critical value of z at α=5%=0.05 level of significance is | | (for two tailed


test Since Z cal> Z Tab (5.07>1.96), the null hypothesis in not accepted. So at 5% level of
significance, it can be said that Environment of the branch and attitude to customer very Positive.

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The Home Loan Product of Rupali Bank is very
innovative
3% Strongly Disagree
3%
10%
Disagree
44%

Neighter Agree nor


40% Disagree
Agree

Figure 5.10: The Home Loan Product of Rupali Bank is very innovative

5. Ho: The Home Loan Product of Rupali Bank is not innovative

HA: The Home Loan Product of Rupali Bank is very innovative

H0: µ = 2.5
HA: µ ≠2.5
n= 30 Level of Significance: 0.05
Here, X  =6

Standard deviation=6

Z test = X   = 6  2.5 = 3.42


s/ n 6 / 30

The critical value of z at α=5%=0.05 level of significance is | | (for two tailed


test Since Z cal> Z Tab (3.42>1.96), the null hypothesis in not accepted. So at 5% level of
significance, it can be said that Home Loan Product of Rupali Bank is very innovative.

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Part-6 (Conclusion Part)

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6.1 Findings and Recommendation:
1. Rupali Bank Limited creates opportunities for General people RBL staffs by providing House
Building Loan. From this study it is revealed that 26% respondents are strongly agreeing, 34%
respondents are agreed, 18%respondents are neither agreed nor disagreed and 12% respondents
are disagreed, and 10%strongly disagreed. So we can say that Duration taken by RBL house
building loan and the general procedure of approval is very long.

2. In hypothesis statement no.2 it has seen that 30% respondents are strongly agreed, 32%
respondents are agreed, 16% respondents are neither agreed nor disagreed, 8% respondents are
disagreed, 14% respondents are strongly disagreed in statement of with a down payment of less
than 20%, One will probably have to get mortgage insurance, increasing one‟s monthly payment.

3. In the hypothesis statement no. 3 it has found that RBL provides commercial and general
house building loan, 44% strongly and 38% clients are disagreed. 10% neither agree nor
disagree. Another 8% and 8% clients agreed and strongly agreed with this statement. So it‟s clear
that RBL provides commercial and general house building loan.

4. A job changes, an increase/decrease in salary, a new debt, a change in one‟s credit history or
change in marital status could delay one‟s house building loan approval. By analysis this
statement it has revealed that 20% of respondents has strongly agreed and 26% has agreed
respectively. Another 16% of respondents disagreed and 22% strongly disagreed. And 18% of
the respondents neither agreed nor disagreed.

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6.2 Recommendations:
As per earnest observation some suggestions for the improvement of the situations are given
below:
1. Duration taken by RBL to sanction a house building loan and the general procedure of
approval is very long. For bank this much time is ok but for clients that are too much so RBL
should think of it and try to minimize the time.

2. A bigger down payment might mean a lower interest rate and better loan terms. one will
probably have to get mortgage insurance, increasing one‟s monthly payment.

3. RBL does not provide commercial and general house building loan they just provide staff
house building loan. RBL should provide commercial and general house building loan along
with staff house building loan to maximize their clients and profits.

4. A job changes, an increase/decrease in salary, a new debt, a change in one‟s credit history or
change in marital status could delay one‟s house building loan approval. The best way to
avoid that is to put one‟s financial life in holding pattern until one reach the closing table.

5. RBL house building loan product is most reliable to all. This is the goodwill for RBL. RBL
should work more efficiently while providing house building loan to maintain their goodwill.

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6.3 Conclusion:
Now-a-days most of the banks offer doorway services to the prospective house building loan
buyers. Housing finance industry is passing through a stage of cut- throat competition in the
present era. Rupali Bank Limited is the fastest growing autonomous bank in Bangladesh. It is a
profit-seeking concern as any other commercial and industrial organization. Here in this report I
briefly discussed about house building loan of RBL. By providing house building loan RBL is
helping to develop the country economically and individually. RBL House building loan buyer
can usually avail up to the 75% to 90% the cost of the property including the cost of the land.
But in some cases up to 100% of cost of property including cost of land, registration charges and
stamp duty are sanctioned to the eligible customers. Only staffs are satisfied with the terms and
conditions of housing loans because RBL is not providing Commercial & General house
building loan. They only provide house building loan to their staffs. RBL should provide
commercial and general house building loan too. Form the learning and experience point of view
I can say that I really enjoyed my internship period in Rupali Bank Ltd. at Shawrapara Br. I am
confident that this 3 (three) months internship program will definitely help me to realize
my carrier in the job market. Performance analysis of a bank is not so sufficient to measure and
express perfectly within this short time of my internship period. But it is a great opportunity for
me to get used to with the operational environment of commercial banking of Rupali Bank ltd. I
have tried by soul to incorporate the necessary relevant information in my report. During the
course of my practical orientation I have tried to learn the practical banking to relate it with my
theoretical knowledge, what I have gathered and going to acquire from various courses.

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6.4 References:

Websites:

(n.d.). Retrieved October 09, 2017, from https://rupalibank.org/en/

Practices and Procedures followed by Rupali Bank Ltd. (2014, June 27). Retrieved
October 05, 2017, from http://www.assignmentpoint.com/business/banking/practices-
and-procedures-followed-by-rupali-bank-ltd.html

Articles:

Potter, A. (2017, December 06). Financing your energy-efficient house. Retrieved


October 02, 2017, from https://www.choice.com.au/money/credit-cards-and-loans/home-
loans/articles/green-home-loans

Home Loan Articles. (n.d.). Retrieved November 08, 2017, from


https://www.paisabazaar.com/home-loan/articles/

PowerPoint Presentation:

(www.slideshare.com),
http://www.slideshare.net/search/slideshow?searchfrom=header&q=home+loan+&ud=an
y&ft=documents&lang=**&sort=

Book:
Annual report of RBL (2016)
Bangladesh Bank; Guide lines for Home Loan and Advance
Howard R. Goldsmith; Advance

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73
6.5 Appendices:
Acrimonious
1. RBL –RUPALI BANK LIMITED
2. MANCOM-MANAGEMENT COMMITTEE
3. CRM-CREDIT RISK MEASUREMENT
4. NPL- NON PERFORMING LOAN
5. KYC- KNOW YOUR CUSTOMER
6. CBS- CORE BANKING SOLUTION
7. BACH- BANGLADESH AUTOMATED CLEARING HOUSE
8. AR- ADEQUACY RATIO
9. BSEC-BANGLADESH SECURITY EXCHANGE COMMISSION
10. BEFTN-BANGLADESH ELECTRONIC FUND TRANSFER NETWORK
11. ICT-INFORMATION AND COMMUNICATIONS TECHNOLOGY
12. CFT-COMBATING FINANCIAL TERRORISM
13. LAM-LOANS AGAINST MORTGAGE
14. DSE-DHAKA STOCK EXCHANGE
15. MCR-MINIMUM CAPITAL REQUIREMENT
16. RDS-RUPALI DEPOSIT SCHEME
17. RWA-RISK WEIGHTED ASSET
18. SLR-STATUTORY LIQUIDITY RATIO
19. TP-TRANSACTION PROFILE

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Some Pictures With Rupali Bank Employees at Shawrapara
Branch:

6.6 Survey Questionnaire:

Dear Respondent,

I am Sarmin Sultana bearing ID: 13302182 student of BBA program Major in Finance and
Banking under College of Business Administration at IUBAT-International University of
Business. Agriculture and technology .I am going to conduct a survey for the fulfillment of our

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course BUS 490; practicum. Your response will not be use for our study purpose and of course
with full confidentiality need your kind co-operation for fulfillment of our report. Research
Topic: A Study on Home Loan Activities of Rupali Bank Limited Ltd.

Instruction: please put tick in the specified boxes and write down your comments in the
specified space.

Name……………………………………..

Age

20-25
26-30
31-40
40-45
46 or Above

1. Types of Housing Loan

 Purchase
 Construction
 Renovation
 Conversion Loan

2. Duration taken by your bank to sanction a home loan is Faster

 Strongly Disagree
 Disagree
 Neither Agree nor Disagree
 Agree
 Strongly Agree

3. Reason for taking Home Loan from Rupali Bank is lower Interest Rates

 Strongly Disagree
 Disagree
 Neither Agree nor Disagree
 Agree
 Strongly Agree

4. Repayment option is very flexible of this bank

 Strongly Disagree
 Disagree
 Neither Agree nor Disagree

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 Agree
 Strongly Agree

5. The Environment of the branch and attitude to customer very Positive.

 Strongly Disagree
 Disagree
 Neither Agree nor Disagree
 Agree
 Strongly Agree

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