DEPOSIT COLLECTION AND LOAN DISBURSEMENT PROCEDURES

OF
PUBALI BANK LIMITED.

By

Md. Suman

ID: BBA-14022

Supervisor

Dr. Syed Moudud-Ul-Haq

Associate Professor

Department of Business Administration

Mawlana Bhashani Science and Technology University

BBA Program

Department Of Business Administration

Faculty of Business Studies

Mawlana Bhashani Science and Technology University Santosh, Tangail.

September, 2019

1
LETTER OF TRANSMITTAL

Date: 14th September, 2019

Dr. Syed Moudud-Ul-Haq
Associate Professor
Department of Business Administration
Mawlana Bhashani Science and Technology University
Subject: Submission of Internship Report “Deposit Collection and Loan Disbursement
Procedure of Pubali Bank Limited”

Honorable Sir
With due respect I have the honor to place my internship Report on “Deposit Collection
and Loan Disbursement Procedures of Pubali Bank Limited” for the partial fulfillment
of the requirement of completion of my BBA program. The report is prepared under your
supervision and guidance. With a view to having pragmatic exposure over practical arena, I
was assigned this topic.
To get through this report based on my cognition and analysis I exerted my full effort and
zeal. I have worked hard in preparing this report and tried to make the report clear and
comprehensive with the constraints. I sincerely believe that this report will fulfill the
purpose.
Thanking you for your kind supervision.

Sincerely yours,
………………………..
Name: Md. Suman
ID No: BBA-14022
BBA 4th Batch, Session: 2013-2014
Stream: Accounting & Information Systems
Department Of Business Administration
Faculty of Business Studies
Mawlana Bhashani Science and Technology University.

2
Certificate of Supervisor
This to certify that the report entitled, “Deposit Collection and loan Disbursement
Procedures of Pubali Bank Limited”. Submitted by Md. Suman Student of Business
Administration (Major in Accounting and Information Systems), Mawlana Bhasani Science
and Technology University, Santosh, Tangail is the candidate’s own achievement.

I also ensure that, I have gone through the draft copy of the report thoroughly and found it
satisfactory for submission to the department of Business Administration, Mawlana Bhasani
Science and Technology University, Santosh, Tangail, Bangladesh.

------------------------------------------
Dr.Syed Moudud-Ul-Huq
Associate Professor
Department Of Business Administration
Faculty of Business Studies
Mawlana Bhashani Science and Technology University, Santosh, Tangail

3
 Declaration
I do hereby solemnly declare that the work presented in this internship report titled “Deposit
Collection and Loan Disbursement Procedures of Pubali Bank Limited” is an original
work done by me under the supervision of Dr. Syed Moudud-Ul-Haq, Associate Professor,
Department of Business Administration, Mawlana Bhashani Science and Technology
University. No part of this report has been previously submitted to any other
university/College/ Institution/ Organization for any academic certificate/ degree/diploma/
qualification.

The work I have presented does not breach any existing copyright and no portion of this
report copied from any work earlier for a degree or otherwise.

I further undertake to indemnify the department against any loss or damage arising from
breach of the forgoing obligation, if any.

--------------------------------------

Name: Md. Suman

ID No: BBA-14022

BBA 4th Batch

Session: 2013-2014

Stream: Accounting & Information Systems

Department Of Business Administration

Faculty of Business Studies

Mawlana Bhashani Science and Technology University Santosh, Tangail.

4
 Acknowledgement
It is Almighty Allah who enables me to successfully complete the Internship Report on
“Deposit Collection and Loan Disbursement Procedures of Pubali Bank Limited. I
would like to express my gratitude to the Department of Business Administration of
Mawlana Bhashani Science and Technology University, Santosh, Tangail, Bangladesh for
arranging such a practical field- related study.

I also express my sincere gratitude and indebtedness to my supervisor, my honorable

teacher Dr. Syed Moudud-Ul-Haq, Associate Professor, Department of Business
Administration, Mawlana Bhashani Science and Technology University,Santosh, Tangail. I
am deeply indebted to his while hearted supervision to me during the internship period.
During preparation of this report, I got many creative and thoughtful suggestions and
advices on a continuing basis.

For cordial behavior and better suggestions in preparing the report, thanks also goes to
Senior Principle Officer and Manager of the Pubali Bank Limited, Main Branch, Tangail,
who gave the opportunity to work in his reputed organization as an internee.

I would like to pass thanks from the core of my heart to Mr. Kazi Aurang Zeb(Branch
Manager), Mr. Ashaduzzaman Bhuiya(Senior Officer, GB In Charge), Mist. Hasina
Akter(Officer General Banking), Mr. Md. Ashraful Islam(Officer Clearing House with
General Banking) and Mr. Md. Kamal Hossain(Junior Officer and Support Eng.) of Pubali
Bank Limited, Main Branch for their unconditional support, which facilitated me to
complete my report successfully.

All of them guided me and without their friendly co-operation, this type of report
preparation might be impossible. I would like to thank all the employees of PBL who helped
me by providing so much information within the limited time.

At last, I would like to give thanks to HR Department of Pubali Bank Limited who gave me
the chance in their bank as internee.

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 Executive Summary
Pubali Bank is one of the largest and oldest private commercial bank in Bangladesh.
Adaption of modern technology both in terms of equipment and banking practice ensures
efficient service to clients. Pubali Bank Limited had been a nationalized bank in the name of
Eastern Mercantile Bank Limited under Bangladesh bank.

Commercial banks lend money to different categories of borrowers for various purposes
with a view to generate revenue. Accordingly, while processing and appraising loan
proposal, banks essentially analyze the information relating to borrowers, assess the
purposes of loan and determine the viability of the loan proposal is sound and safe for
lending, loan is sanctioned and disbursed.

This paper analyses the “Deposit Collection and Loan Disbursement Procedures of
Pubali Bank Limited”. To analyze the effectiveness of their Deposit collection and Loan
disbursement procedure data sources gathered from primary data sources including practical
banking work, personal discussion with the officers and executives of PBL and personal
interview with the customer and from secondary data sources including annual report,
published booklet, various published document, website etc. This study has several chapters
and different aspects regarding the topic have been discussed in each chapter.

At, chapter one, there is an overview of internship report where the report describe
introduction, origin of the report, objectives of the report, scope and limitation. The main
objective of my report is the way of collecting deposit and to evaluate the performance of
loan disbursement of Pubali Bank Limited and to suggest some policy measurement to
overcome the advisement.

In the second chapter the methodology of the report are discussed. Data have been collected
from both primary and secondary sources.

In chapter three this report has narrated the company profile including Pubali Bank’s
history, their vision, mission, objectives, activities and performance and so on.

In the fourth chapter, it has described different theoretical and conceptual aspects of loan
disbursement including process of sanctioning a loan, document required for an investment,
process of handling a loan and recovery of the loan.

In chapter five this study enumerates some analysis and findings deposit and loan of Pubali
Bank Limited, Main Branch, Tangail.

In the last chapter according to the findings of the study I have provided a conclusion and
some suggestions and in the last part and bibliography is given at the end of the study.

6
 Table of Contents
SL. No Particular Page No.
Executive Summery 06
Chapter One – Introduction
1 1.1 Background of the study 11
1.2 Origin of the Report 12
1.3 Scope of the Report 12
1.4 Rationale of the Study 12
1.5 Problem Statement 12
1.6 Objective of the Report 13
1.7 Limitations of the Report 13
Chapter Two – Methodology of the Report
2 2.1 Methodology 14
2.2 Collection of Data 14
2.3 Sources of Data 14
2.4 Time Frame 15
2.4 Data Processing & Analysis 15
Chapter Three – Organizational Profile
3 3.1 Historical Background of PBL 16
3.2 Vision Mission of Pubali Bank Limited 16
3.3 Objectives of PBL 17
3.4 Corporate Strategy of PBL 17
3.5 Nature of the Business 18
3.6 Organizational Structure of PBL 18
3.7 PBL at a Glance 19
3.8 Managerial Hierarchy 20
3.9 Organogram of the Employees in PBL 21
3.10 Board of Directors 22
Chapter Four- Deposit Collection & Loan Disbursement Procedures of PBL
4 4.1 Deposit Section 23
4.1.1 Deposit Account of PBL 23
4.2 Deposit Collection Procedure 24
4.2.1 Account Opening Requirement/ Condition 24-25
4.3.1 Deposit Schemes of PBL 26
4.3.2 Interest Rates for Deposit Schemes 27
4.4.1 Loan 28
4.4.2 Types of Loan of PBL 28-29
4.5.1 Consumers Loan Scheme of PBL 30
4.5.2 Interest rate for loan product 30
4.6 Loan Disbursement Procedure 33-37
Chapter Five – Deposit and Loan Analysis & Findings
5 5.1 Target Profit VS Actual Profit 38-39
5.2 Total Deposit and Its Growth Rate 40-41
5.3 Target Loan VS Actual Loan 42-43

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 5.4 Total Loan and Its Growth Rate 44-45
5.5 Total Loan against Total Deposit 45-46
5.6 Recovery of Total Loan 47-48
5.7 Profit & Loss of PBL 48-49
5.8 Findings of the Study 50
Chapter Six– Conclusion and Recommendations
6 6.1 Conclusion 51
6.2 Recommendations 52
Bibliography 53

8
List of Table

Table No Name of the table Page No

Table 2.1 Time Frame 15
Table 3.1 PBL at a Glance 19
Table 4.1 Interest Rates for Deposit Schemes 27
Table 4.2 Interest rate for loan for Loan Products 30-32
Table 5.1 Target Profit VS Actual Profit 38
Table 5.2 Total Deposit and Its Growth Rate 40
Table 5.3 Target Loan VS Actual Loan 42
Table 5.4 Total Loan and Its Growth Rate 44
Table 5.5 Total Loan against Total Deposit 46
Table 5.6 Recovery of Total Loan 47
Table 5.7 Profit & Loss of PBL 48

List if Figure

Figure No Name of the Figure Page No

Figure 3.1 Managerial Hierarchy of PBL 20
Figure 3.2 Organogram of the Employees in PBL 21
Figure 4.1 Process Flow for Loan Disbursement 29
Figure 5.1 Target Deposit VS Actual Deposit 39
Figure 5.2 Deposit Growth Rate 41
Figure 5.3 Target Loan VS Actual Loan 43
Figure 5.4 Total Loan and Its Growth Rate 45
Figure 5.5 Total Loan against Total Deposit 46
Figure 5.6 Recovery of Total Loan 48
Figure 5.7 Profit of PBL 49

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 List of abbreviations
PBL Pubali Bank Limited

BB Bangladesh Bank.

BCC Branch Credit Committee.

BL Bill of Landing.

CC Cash Credit.

C&F Credit and Fording.

CCS Consumer Credit Scheme.

CIB Credit Information Bureau.

CRM Credit Risk Management.

CRG Credit Risk Grading.

IBCC Inter Branch Credit Committee.

IBP Inland Bill Purchase.

ID International Division.

LTR Letter of Transmittal.

MMP Model Marketing plan.

SBL Small Business Loan.

SME Small Medium Enterprise.

TIN Tax Identification Number.

KYC Know Your Customer

AOD Asset Operation Division

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 Chapter one

Introduction
1.1 Background of the study
Generally Bank is the financial institution that deals with money. There are different types
of bank like commercial bank, investment bank, international bank and Islamic etc. Day by
day banking sector is modernizing. The banking process is becoming faster, easier and wider
at the same time. To survive in the competitive field, banking sector’s organizations are
looking for better service opportunities to provide better service to their clients. So to have
some idea on the bank and banking procedure is becoming important for every person.
Theoretical knowledge works perfectly with practical knowledge. As a student of BBA
program we have to gather practical knowledge and skills to meet the future competition.
Without practical knowledge, theory can never be effective. Recognizing the importance of
practical experience, three months practical work experience is one of the most important
parts of four year BBA program. As practical work experience is integral part of BBA
program requirement, I have worked as an intern at Pubali Bank Limited, Main branch,
Tangail. By practical work experience in a bank for three months, it would be a great
opportunity where student should learn practical knowledge and experience on the various
function of banking business. The report is prepared on the basis of three months practical
experience at Pubali Bank Limited, Main branch, Tangail that really helps a lot to learn
about practical situation of a financial institution and application of theoretical knowledge
into practical and realistic work environment. After discussion and I started to work on a
project titled “Deposit collection and Loan disbursement procedures of Pubali bank
Limited”. The report covers the Deposit collection and Loan disbursement procedure of
Pubali Bank Limited. Different credit facilities, approval process, monitoring and
performance are discussed by this report. Finding and analyzing the credit facilities,
approval, monitoring collection and recovery process of Pubali Bank Limited are the
purpose of this study. The performance of the bank in recent years will be also included. It

11
also helpful to find out different credit facilities that Pubali Bank is providing to their
customers. For the academic requirement of Faculty of Business Administration, I have been
assigned to do my Internship program at Pubali Bank Limited, Main Branch, Tangail.
Internal supervisor, Dr. Syed Moudud-Ul-Huq, Associate Professor, Department of Business
Administration, Mawlana Bhashani Science and Technology University has assigned me to
conduct the report on the topic of “Deposit collection and Loan disbursement procedure of
Pubali bank Limited”.

1.2Origin of the Report

To complete Graduation for BBA, internship Program is mandatory for every student. There
are various purposes of the internship Program. It will give the students opportunity to
develop their skill in the application of theory to practical work situation. It will provide
students with an in-depth knowledge of the formal functional activities of a participating
organization. It will increase a student’s sense of responsibility. It will also provide student
the opportunity to develop attitudes conducive to effective interpersonal relationships. It also
helps the students to assess their career on chosen sector.
For that I got the opportunity to do my internship at Pubali Bank Limited, main branch,
Tangail. This report is a project on specific process which is “Deposit Collection and Loan
Disbursement Procedures of Pubali Bank Limited”. The Report also includes an
overview of Pubali Bank Ltd.

1.3 Scope of the Study

Pubali Bank Limited is the commercial bank in Bangladesh. The scope of the study is
limited to the Tangail main branch only. The scope of the study includes the organizational
structure, background and objective, functional, departmental and business performance of
PBL as a whole and the main part covers deposit, loan and advance of PBL at Main Branch,
Tangail.

1.4 Rationale of the Study

Deposit is the source of loanable fund and loan is the major income source of a bank. A
bank’s profitability depends on efficient deposit and loan management. Because loan
recovery has a strong influence on income. So deposit collection and loan disbursement
procedures are important for a bank.

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1.5 Problem Statement
Bank collects deposit and pays interest to depositors. Bank also lends this deposited fund to
the borrower and receives interest. If interest received is higher than the interest payment,
bank will earn income. In 2010 to 2014 loan recovery was 100%, 2015 and 2016 was 99%
something but last two year deposit collection was increased and loan recovery was
decreased.
The main concern of this study is to control their default loan, what tools or techniques they
use to handle their default loan and to what extent their performance can be affected by
deposit collection and loan disbursement procedure.

1.6 Objective of the Study

General Objective:
The main objective of the study is to analyze deposit collection and loan disbursement
procedures of Pubali Bank Limited, Main Branch, Tangail.
Specific Objectives:
The specific objectives of this report are:
1. To learn about the deposit collection process by Pubali Bank Limited, Main Branch,
Tangail.
2. To learn about the loan disbursement process by PBL, Main Branch, Tangail.
3. To evaluate the performance of PBL (Main Branch) based on deposit collection &
loan disbursement aspect.

1.7 Limitations of the Report

To complete the study, I have faced the problems that are given below that may be terms as
the limitation or shortcoming of the study-
 Bank policy was not disclosing some data and information for various reasons.
 The department people always remain busy due to lack of supporting employees so
they could not dedicate their full efforts
 Because of the limitation of information some assumption was made. So there may
be some personal mistake in this report.

13
  The annual report is the main secondary source of the information but this
information was not enough to complete the report and it was not identified clear
idea about this bank.

CHAPTER TWO

Methodology of the Report

2.1 Methodology
To conduct the study a systematic procedure from selection of the topic to preparation of the
final report is required. To perform the study, the data sources have to be identified and
collected, to be classified, analyzed, interpreted and presented in a systematic manner and
key points were to be found out. The overall process of methodology has been given as
below.

2.2 Collection of Data

Both primary and secondary data have been used to carry on this study. Primary data
have been collected through direct and face to face interview of the different personnel
of the Pubali Bank Limited of Main Branch. Secondary data (Annual Reports) have been
collected through on internet. And statements of affairs are provided by Main Branch.

2.3 Sources of Data

Data is collected from the primary and secondary sources.

Primary Sources:

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  Face to face conversation with the respective officers
 Direct Observation
 Practical desk work

Secondary Sources:

 Statement of affairs of PBL, Main Branch, Tangail.

 Internal server and external websites of PBL

2.4 Time Frame

Data Year

Deposit 2010- 2018

Loan 2010- 2018

Recovery Loan 2010- 2018

Table 2.1: Data Collection Period

2.5 Data Processing & Analysis

Some graphical tools are used in this study for analyzing the collected data and to
classifying those to interpret them in a clear and understandable manner. The collected data
were pointed out and shown as findings. Few recommendations are also made for
improvement of the current situation.

15
 CHAPTER THREE

Organizational Profile
3.1 Historical Background of PBL
Pubali Bank Limited is the largest private commercial bank in Bangladesh. It has more
branches than any other private bank in the country. Pubali Bank was started in East
Pakistan as Eastern Mercantile Bank Limited in the year 1959 under Bank Companies Act
1913. After independence of Bangladesh in 1971 this Bank was nationalized under
Bangladesh Bank's (nationalization) Ordinance and renamed as Pubali Bank. The objective
was strengthening the rural economy. Subsequently, Pubali Bank was denationalized in the
year 1983 as a private bank and renamed as Pubali Bank Limited.
At Present, Pubali Bank is the largest private commercial bank having 473 branches and it
has the largest real time centralized online banking network. There are total 96 ATM booths
of Pubali Bank Limited situated in 32 districts in Bangladesh. Mr. M. Azizul Huq is the
present chairman of the bank.

3.2 Vision and Mission of Pubali Bank Limited

Vision
The Bank has clear vision towards its ultimate destiny – to be the best amongst the top
financial institutions.
 To be leading commercial bank in the country and contribute maximum of the
welfare for the people of the country.
 Prime objective is to deliver a quality that demonstrates a true reflection of its vision.
 Excellence in banking.
 To provide quality service to the customer.
 To set high standard of integrity.

Bring total satisfaction to its clients, sponsors and employees

Mission
 To be the most caring and customer friendly provider of financial services.
 To ensure stability and sound growth while enhancing the value of shareholders
investments.
 To aggressively adopt technology at all levels of operations to improve efficiency
and reduce cost per transaction.

16
  To ensure a high level of transparency and ethical standards in all business transacted
by the Bank.
 To provide congenial atmosphere which will attract competent work force who will
be proud and eager to work for the Bank.
 To be socially responsible and strive to uplift the quality of life by making effective
contribution to national development.

3.3 Objectives of PBL

Objectives mean the end towards which an activity is aimed. An organization without
objective is like a person who is wandering with no purpose. All the activities of an
organization are due to its objectives and goals. For the attainment of those objectives,
various types of financial products and plans are developed. PBL has also some objectives,
which are as follows:

 To ensure growth and development of the bank.

 To use resources of the bank efficiently.
 To get more deposits.
 To participate in development of the country.
 Paying special attention to the areas, which are under developed.
 To develop SME’S, foreign remittance, foreign trade.
 To increase industrialization in the country.
 To provide employment opportunities.
 To make people more of mind to have saving habits.
 To increase the services (backed by technology) by efficient employees.

To increase deposit mobilization

3.4 Corporate Strategy of PBL

The corporate strategies of PBL are described below:
 Focusing on controlling operating cost.
 Focusing much general loan and less on SME loan.
 Using their own developed banking software.
 Online inward and outward is free less than one lac.
 Focusing on steady and sustainable growth.

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3.5 Nature of Business
The report is conduct through on a most prominent private bank; Pubali Bank Limited. PBL
provide general banking services to the customer and also do the social welfare activities
like corporate social services on various field.

3.6 Organization Structure of PBL

Pubali Bank Ltd expanded as a largest commercial bank in the country. Its operational
networks cover almost every part of the country including the major cities, rural townships,
which are prospective business centers in Bangladesh.There are total twelve divisions in the
Head Office of PBL.

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3.7 PBL at a Glance
SL Key Point Particulars
no
01 Name of the Bank Pubali Bank Limited

02 Logo of the Bank

03 Date of Incorporation 30 June 1983

04 Status PPBLic Limited Company

05 Chairman Mr. M. Azizul Huq

06 CEO & Managing Director Mr. M.A. Halim Chowdhury 

07 Number of Branches 473

08 Corporate Head Office Pubali Bank Bhaban

26, Dilkusha Commercial Area
Dhaka – 1000, Bangladesh
Post Box No. 853

09 Corporate Website & Email www.pubalibangla.com

pubali@bdmail.net

Table 3.1: PBL at a glance

Awards of PBL
 “Bangladesh Business Award 2009” as the best Financial Institution in Bangladesh.
 Honored by BOA for patronization and support in games in Bangladesh.
 “Best Rated Bank – 2010” to Pubali Bank Limited for its strong standing towards Capital
Adequacy, Income, Loan Recovery and Corporate Social Services.

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  Mr. Helal Ahmed Chowdhury, Managing Director of Pubali Bank Limited, has been
honored as the “Best Banker 2011” by the top financial weekly, the Artha Kantha.

3.8 Management Hierarchy

Managing Director

Deputy Managing Director

Assistant Managing Director

General Manager

Deputy General Manager

Assistant General manager

Senior Principal Officer

Principal Officer

Grade 1 Officer

Grade 2 Officer

Figure 3.1: Management Hierarchy

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3.9 Organogram of the Employees in PBL

GM

DGM GENERAL DGM AGM: 2 Foreign

BANKING Advance Exchange

AGM: 1 AGM: 1 AGM: 1

SPO: 4 SPO: 5 SPO: 1

PO: 14 PO: 1 PO: 2

SO SO SO

Officer Officer Officer

Junior Junior Officer Junior

Officer Officer

Figure 3.2: Organizational Program of the Employees in PBL

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3.10 Board of Directors
Mr. M. Azizul Huq (Chairman)
Mr. Habibur Rahman (Director)
Mr. Moniruddin Ahmed (Director)
Mr. Monzurur Rahman (Director)
Mr. Fahim Ahmed Faruk Chowdhury (Director)
Mr. Azizur Rahman (Director)
Mr. Musa Ahmed (Director)
Mr. Md. Abdur Razzak Mondal (Director)
Mr. M. Kabiruzzaman Yaqub (FCMA (UK) & CGMA
Director)
Ms. Rumana Sharif (Director)
Mr. Arif A. Choudhury (Director)
Mr. Asif A. Choudhury (Director)
Ms. Rana Laila Hafiz (Director)
Dr. Shahdeen Malik (Independent Director)
Mr. Md. Abdul Halim Chowdhury (Managing Director

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 CHAPTER FOUR

Deposit Collection and Loan Disbursement Procedure

4.1 Deposit Section
A bank deposit is the placement of funds in an account with a bank or other financial
institution. There are two types of bank deposits. One is demand deposits and other is time
deposits.
Demand deposit is the placement of funds into an account that permit the depositor to
withdraw his or her funds from the account without warning or with less than seven days'
notice. Checking accounts are one kind of demand deposits.
A time deposits are an interest-bearing deposit offered by a bank or financial institution for a
fixed term. For a time deposit, the depositor can withdraw the funds only after giving notice.
Time deposits generally refer to savings accounts or certificates of deposit and 30 days'
notice is required for withdrawal of these deposits. The notice requirement also means that
banks may assess a penalty for withdrawal before a specified date. Time deposits provide
higher interest rates than demand deposits.

4.1.1 Deposit Account of PBL:

Deposit account is one of the vital sources of bank’s funds. The banks offer attractive
facilities to attract customers.
Deposit account offered by PBL:
1. Savings bank (SB) account
2. Current deposit (CD) account
3. Fixed deposit account
4. Short term deposit

Savings Account
A savings account is a place where you can store cash securely while you earn interest on
your money. Deposit account is one of the vital sources of bank’s funds. The banks offer
attractive facilities to attract customers.

23
Current Account:
A current account is an account, which is generally opened by business people for their
convenience. A current account is a running and active account. It may be operated upon
any number of times during a working day. There is no restriction on the number & amount
withdrawals from current a/c. It does not earn any interest.
Fixed Deposit Receipt (FDR) Account:
In this category is included the deposits with the bank for a fixed period which is specified at
the time of making the deposit. Such deposits are therefore called fixed deposits or term
deposits. A fixed deposit is repayable on the expiry of a specified period, chosen by the
depositor to suit his purpose. The fixed deposit may be made for 3 months, 100 days, 6
months, 1 year, 2 years or 3 years. As the date of repayment of fixed deposit is determined
in advance, the banker needs not keep more cash reserves against it and can utilize such
amount more profitably. The banker therefore offers higher rate of interest on such deposits.
When a matured FDR is withdrawn, the principle amount along with the interest amount
(deducting 15% tax from the total but for TIN 10% tax from total) is paid to the client.
Short Term Deposit (STD):
It is a deposit account open by customer where customer deposited money for short period.
Customer can draw money after giving short notice; this account holder enjoys the same
facilities of CD account including receiving interest on his deposited money. Interest rate of
STD is less than the interest rate of SB account.

4.2 Deposit Collection Procedure

Deposit is the source of loanable fund not income. Loan is the source of income of a bank.
Deposit may be collected by different schemes but this process is started by opening an
account.

2.2.1 Account Opening Requirement/ Condition

 Any person who is adult and mentally sound can open and maintain a SB account
(Savings Bank) with the head of single or multiple users. The guardian of the minor
child can open the SB account with the favor of them.
 Any club, association or any organization can open a SB account by providing the
article of association of their organization.
 Any illiterate person can also open a account in the bank. But such account holder
must be present at the time of withdrawing money from their bank account.

24
  There should be proper identification by any account holder who has the account in
the same branch and his account number and account name should be properly filled
up in the opening form with her/his valid signature that is used to run the bank
account.
 For each and every account, a separate account number will be given that must be
used for depositing, withdrawing or other banking activities when required.
 An account holder can deposit money in his/ her account more than one time as
he/she wants.
 A client withdraws and deposits money only through specific cheque book and
deposit book issued by the bank only.
The following documents are needed as per rule as Pubali bank limited.
 Two copies of passports size photograph
 Birth certificate copies
 The entries document must be verified by the authorized officer of the bank.
 Current valid passport copies
 Valid driving license copies
 National ID card copy
 Trade license with the applicant’s attachment photography
Additional Information for Savings Bank (SB) Account
 Opening Amount/ Initial Deposit Tk. 500/-
 Service Charge (yearly) Nil
 Minimum Balance Requirement Tk. 500/-
 Closing charge Tk. 350/-
 Interest rate 4.50%
 One can withdraw money two times in a week.
 If customer withdraws money more than twice in a week than no interest is given on
his account
Additional Information for Current Deposit Account

 Opening Amount/ Initial Deposit Tk. 2,000/-

 Service Charge (yearly) Nil
 Minimum Balance Requirement Tk. 2,000/-

25
  Current a/c may be individual or joint or partnership or can be formed on any name.
It provides the following facilities:
 Overdraft facility,
 Other facilities like collection of checks transfer of money, rendering Agency and
general utility services.
Additional Information for Short Term Deposit

 Opening Amount/ Initial Deposit Tk. 2000

 Service Charge (yearly) Nil
 Minimum Balance Requirement Tk. 2000
 Interest rate 3.75 %

4.3.1 Deposit Schemes of PBL

Pubali Bank Limited collects deposit by providing the following deposit scheme for the
customers.
 Savings Bank Account
 Current Deposit Account
 Dwigun Sanchaya Prakalpo
 Pubali Sanchaya Prakalpo
 Shiksha Sanchaya Prakalpo
 Pubali Pension Scheme
 Fixed Deposit Receipt
 Monthly Profit Based Fixed Deposit
 Special Notice Deposit (SND)
 Monthly Profit Based Small Deposit
 Target Based Small Deposit

26
4.3.2 Interest Rates for Deposit Schemes

SL Product Description Interest

Rate
01. Saving Bank Account 2.75%
02. Special Notice Deposit Less than 1 Crore 3.50%
1 Crore or above but less than 25 Crore 4.00%
25 Crore or above but less than 50 Crore 5.00%
50 crore or above but less than TK.100 crore 6.00%
100 crore or above but less than TK.200 crore 7.00%
200 crore or above 8.00%
03. Deposit Pension Scheme 15.00%
04. Pubali Pension Scheme 3 Years 7.50%
5 Years 8.50%
7 Years 9.00%
10 Years 9.00%
05. Pubali Sanchay Prokalpo 5 Years 8.50%
10 Years 9.00%
06. Shikha Sanchay 10 Years 9.00%
Prokalpo
07. Digun Sanchoy Prokalpo 8 Years 9.052%
08. Monthly Profit Based 5 Years 8.50%
FDR
09. Pubali Swadhin Sanchay 8.50%
10. Pubali Shawpna Puran 8.50%
11. FDR for 100 Days For any amount 7.50%
12. Fixed Deposit Receipt 1 Month, Any amount 4.00%
3 Months, Any amount 6.00%
6 Months, Any amount 8.00%

27
 12 months and above, Any amount 8.50%

Table 4.1: Interest Rates for Deposit Schemes

4.4.1 Loan
Loan granted by Pubali bank are highly beneficial for firms, individuals, companies and
industrial concerns. Loan may be consider as credit granted where the funds are disbursed
and its recovery is made on a later date. It is a debt for the borrower. Loan is also the major
sources of risk for the bank management. An astute bank management should always try to
make an appropriate balance between return and risk involved with the loan portfolio.
Loans mean lend money made by the bank to weak clients for earning interest. Main
objective of the loans is to earn profit for the bank. The banks major earning come from
interest received of a bank.

4.4.2 Types of Loan of PBL

 Continuous Loan
 Demand Loan
 Term Loan
 Cash Credit (CC)
 Overdraft (OD)
 Bank Guarantee
 Staff Loan (Pubali Bank Ltd)

Continuous Loan
Continuous loan is the limited loans with expiry date of loan payment, which can be
transacted without any particular payment schedule, are termed as continuous loan.
 Cash Credit
 Pubali Prochesta
Demand Loan
The loans which become eligible for payment when demanded by the bank, are termed as
demand loan.
 Flood Loan
 Loan against PPS
 Staff HBL

28
  Staff D/L(PF) Motor Cycle, Car

Term Loan
The loans which are to be paid within limited term with a particular payment schedule are
known as term loan.
Following are the various categories:
 Term loans up to 5 years
 Term loans over to 5 years
Cash Credit (CC)
Cash credit is given through the Cash Credit (CC) account. Cash credit account is basically a
current account, however a little difference exist between them. The distinctions between a
current account and CC account is that the former is intended to be an account with credit
balance and the latter an account for drawing of advances.
Operation of cash credit is as same as overdraft. The purpose of cash credit is to meet
working capital needs of traders, farmers, and industrialists.
Over Draft (OD)
Overdrafts are those drawings which are allowed by the banker in excess of the balance in
the account up to a specified amount for definite period. Generally it is given to the
businessmen to maintain their business activities. Any deposit in the SOD account is treated
as repayment of overdraft. Generally provided against FDR, any primary security etc.
Staff Loan:
Staff House Building Loan – SHBL
• 120 times of the basic salary is provided as SHBL
• Bank Rate + 1%, interest is charged to the employee
• Repayment is adjusted from their monthly salary
• Repayment is made at equal monthly installment
Staff Loan against Provident Fund – SPF
• 10% of basic is contributed by employee in every month
• 10% of basic is also contributed to the PF by the Bank
• Repayment is adjusted from their monthly salary
• Maximum Sanction from PF

29
4.5.1 Consumers Loan Scheme of PBL
 Car Loan
 Flat Purchase Loan
 Household Durable Loans
 Medical Equipment Loan
 Govt. Primary School Teacher Loan

4.5.2 Interest rate for loan product

SL Product Interest Rate

01 Cash Credit 12.50%
.
02 Over Draft 12.50%
.
03 Secured Over Draft 12.50%
.
04 Inland Bill Purchase 12.50%
.
05 Payment Against Document 13.50%
.
06 Loan Against Imported Merchandise 13.50%
.
07 Loan Against Trust Received 13.50%
.
08 HBL General Residential 11.00%
.
Commercial 11.00%
Pubali Mortgage 11.00%

30
09 All Export Loan 7.00%
.
10 Agriculture a) i) Crops 4.00%
. Credit Production(Dal, Oil Seeds
,Spices ,Corn)
a) ii) Crops 9.00%
Production(Other than Dal
,Oil Seeds ,Spices ,Corn)
b) Fishery 9.00%
c) Poultry 9.00%
d) Domestic Animal 9.00%
Rearing
11 Non Resident Credit Scheme 9.00%
.
12 Loan Against FDR(Other Bank) 10.50%
.
13 Loan Against FDR(Own Bank) Above 2% pledged FDR
.
14 Loan Against DPS Above 2% pledged DPS
.
15 Loan Against Secured Mortgage 15%
.
16 Loan Against Transport 12.50%
.
17 Term Loan 12.50%
.
18 Loan Against LCI 15%
.
19 Flood Loan 14%
.
20 Loan Against PPS Above 2% pledged PPS
.
21 Loan Against PSP Above 2% pledged PSP
.
22 Loan Against other Securities 15%
31
.
23 Loan Against SSP Above 2% pledged SSP
.
24 Education Pubali Employees 8.00%
. Loan
Others 9.00%
25 Loan Agri University Special 15%
.
26 Miscellaneous Sector 15.50%
.
27 Consumer Credit Scheme – Car Interest 10.00%,Agent Com 3.00%
.
28 Consumer Credit Scheme – Flat Interest 11.00%,Agent Com 1.50%
.
29 Consumer Credit Scheme - House Hold Interest 13.50%, Agent Com 3%
.
30 Consumer Credit Scheme - Medical Interest 12.50%, Agent Com 3%
. Equipment
31 Consumer Credit Scheme - Primary Teacher Interest 11.00%
.
32 Personal Loan With mortgage Interest 12.00%,Agent Com 3.00%
.
Without mortgage Interest 13.00%,Agent Com 3.00%
33 DLP-Pubali Salaried Executives Interest 12.50%
. Star
Self/Businessman With Interest 12.50%
Mortgage
Self/Businessman Interest 13.50%
Without mortgage
34 Pubali Utsab Interest 12.50%
.
35 Lease Financing Scheme 13.00%
.
36 Pubali Subarna 12.50%
.

32
 37 Pubali Karmo Uddyog 12.50%
.
38 Pubali Sujon 12.50%
.
39 Pubali Proshar 12.50%
.
40 Pubali Prochesta 13.50%
.
41 Pubali Protyasha(Women) 9.00%
.
42 Consumer Credit Scheme - House Interest 11.00%,Agent Com 1.50%
. Renovation Loan
43 Probash Bandhu 9.00%
.
44 Consumer Credit Scheme - Pubali Abashon 11.50%
.

**Persons having salary account with Pubali Bank Limited will enjoy 1% less than the prevailing
interest rate as usual.

Table 4.2: Interest rate for loan product

4.6 Loan Disbursement Procedure

33
The main function of a bank is to disburse loan. Lending is an ongoing process. It is through
the medium of lending the banking industry promotes economic activity, instills and
encourages, at the individual level, the principal of self-reliance, and yield earnings for the
bank. It is lending alone that brings banking into a more meaningful and purposeful contract
with pPBLic and, therefore, has the greatest impact upon them.
I would try to concentrate on Pubali Bank’s nature, pattern, and allocation of invested
resources in this chapter. The bank under study has divergence in its investment portfolio,
loan programs, advances and recovery rate etc.
Pubali bank limited, Tangail main branch is situated in Masjeet Road, Tangail, which is very
important place in Tangail city. It is one of the important branches of PBL.
Pubali Bank sanctions loans. While lending fund, bankers, therefore, follows a very cautious
policy and conduct his business on the basis of well-known principles of sound lending in
order to minimize the risk

Process Flow of Loan Disbursement

Customer Head Office

Sanction Letter
Applicalition Approval

Filling application
Project Appraisal Documentation
Form

Collecling CIB
Processing Loan
Report from Disbursement
Proposal
Bangladesh Bank

Figure 4.1: Process flow of Loan Disbursement

Party’s Application

34
At first borrower have to submit an application to Pubali Bank Limited, main branch,
Tangail for loan, where he/she has to clearly specify the reason for loan. After receiving the
application bank officer verifies the all information and also checks the account maintained
by the borrower with the bank. If the officer become satisfies, he will give an application
form to the prospective borrower.
Filling Application Form

The applicant needs to fill the application form. It is the prescribed form provided by the
bank that contains information of the borrower. Here applicant has to fill the form sincerely
and provide valid information.

CIB Obtaining Process

Fill up CIB form
CRO gives a CIB form to the client and the client fill and sign in it. In some cases if the
client is illiterate then the CRO fill the form on behalf of the client. Then CRO send the
filled and signed form to the head office.
Sending CIB to Bangladesh Bank
The head office collects all information and sends the CIB form to Bangladesh Bank for
clearance. Bangladesh Bank return this CIB form within 10-12 days with reference no.
CIB report from Bangladesh Bank: In the CIB report Bangladesh Bank uses any of the
following reference no:
 NIL: If the client has no loan facility in any bank or any financial institution then
BB (Bangladesh Bank) use ‘NIL’ in the report
 UC (Unclassified): If the client has any loan facility in any bank or financial
institution and if the installment due 0 to 5.99 then BB use UC in the report
 SS (Substandard): If the client has any loan facility in any bank or financial
institution and if the installment due 6 to 11.99 then BB use SS in the report
 DF (Doubtful): If the client has any loan facility in any bank or financial
institution and if the installment due 12 to 17.99 then BB use DF in the report
BL (Bad lose): If the client has any loan facility in any bank or financial institution and if
the installments due for more than 18 or above months then BB use BL in the report. This
report indicates that the client is defaulter and the bank should not provide loan the client

Processing Loan Appraisal/Application

35
A potential customer to interested to avail Lease Finance from our bank will apply in
standard application Form design by the bank along with a brief write-up on the
proposal/equipment expected returns/benefits for the use of such equipment or automobile
as the case may be. A competitive quotation of the lease item issued in favor of Pubali Bank
Ltd. shall have to be submitted.
After examination of the various aspects of the project, if the branch manager /relationship
manager fully satisfied about the financial standing, credit worthiness, management set–up,
professional integrity, technical feasibility, repayment capacity etc, of the provost lessee and
business viability of the project, the proposal may be forward to head office through the
zonal office with necessary comments, view and recommendation for approval.
Procedure of Preparing Proposal for Loan
Following process is followed by the Pubali Bank Limited for preparing loan proposal:
First, borrower has to apply to PBL for their loan by filling up of a specific application form
given by the bank in respect of their own status (individual/proprietorship/public/private
Ltd. etc.).
 Lawyer’s opinion on the documents of the properties.
After getting the permission from manager the employee’s team prepares loan statement of
Tangail main branch. By adding all the documents, submit it to head office and zonal office.
 The repairing and/ or renovation work must be done within the premises as per
estimate submitted by the party with the application.
 Since there is no provision for insurance cover against the loan, the borrower will
furnish an under taking to the effect that he/she will repay the bank loan even if there
is any loss of property due to natural calamity.
 The borrower will allow the bank official to inspect the side at any time.
 The borrower will immediately inform the bank if he /she or his /her grantor changes
residential address or professional.
 The borrower will not sell, gift or transfer the possession/owner ship of the
house/building /flat before full adjustment of the loan without prior permission from
the bank.
Existing rent of the house /building /flat and other source of income of the applicant are to
be mentioned in loan application form.

After that the employee of Tangail main branch cheeks all documents provided by the
borrower .the following documents is checked:

36
  Application and passport size photograph
 Price quotation
 Passport /voter ID / office ID/ other ID
 Salary Certificate
 Photocopy of latest trade license
 Photocopy of registered/Notarized partnership deed
 Tax documents
 Bank statement
 Checking proper filling up of the application
After that, Tangail main branch sent a very efficient team for the verification. If the team is
satisfied by all aspects, then they report to the branch manager. If the branch manager
agrees, then he gives order for preparing proposal for loan
After getting the permission from manager the employee’s team prepares loan statement of
Tangail main branch. By adding all the documents, submit it to head office and zonal office.

Approval Process
Loan Applications in the prescribed format shall be received at Credit Approval unit
recommended by sales team along with annexure that covers comprehensive LPF
information detailed in the Prudential Guideline advised by Bangladesh Bank.
The sales team is responsible for loan sales and should be the owner of the customer
relationship, and must be held responsible to ensure the accuracy of the loan application
submitted for approval. They should be familiar with the bank’s Credit Policy and PPG and
should conduct due diligence on new borrowers, purpose of the loans and guarantors.
During recommending for a client it is expected that the respective Officer has adhered to
Know Your Customer (KYC) and Money Laundering guidelines.
Credit Approval Sheet should have, as a minimum, the following details:
 Amount and type of loan(s) proposed.
 Purpose of loan(s)
 Loan Structure (Tenor, Covenants, Repayment Schedule, Interest)
 Security (if any)

37
Approvals must be evidenced in writing, or by electronic signature. Approval records must
be kept on file with the Credit Applications. Loans and advances on becoming inoperative /
stuck up should not be renewed and / or re-scheduled without getting prior approval from
the Credit Committee. In case of loan take over from any bank/financial institution, then any
correspondence should be made with the bank/financial institution directly, such as security
takeover.

Sanction letter
All letters addressed to the borrowers sanctioning credit facilities should be prepared in
duplicate and signed by two authorized officers of the Bank. Among the two authorized
Officer one must be a Manager of the Credit Team. If the terms and conditions of loan
sanction letter are acceptable to him the borrower should return the duplicate copy duly
signed.
Client’s information & Loan details is matched with the Credit approval then loan is
sanctioned & a Loan Sanction Number is auto generated.

38
 CHAPTER FIVE

Deposit & Loan Analysis and Findings

5.1 Target Deposit VS Actual Deposit of PBL, Tangail, Main Branch

Year Target Deposit Actual Deposit Target Gained

2010 23,00,00,000.00 21,76,61,846.42 94.64%

2011 28,00,00,000.00 32,40,23,290.17 115.72%
2012 35,00,00,000.00 39,12,28,390.28 111.77%
2013 43,00,00,000.00 45,57,48,979.96 105.98%
2014 50,00,00,000.00 47,14,57,917.63 94.29%
2015 57,00,00,000.00 52,36,24,896.73 91.86%

2016 62,00,00,000.00 63,93,52,959.08 103.12%

2017 67,00,00,000.00 61,73,92,598.11 92.15%

2018 75,00,00,000.00 68,92,55,145.93 91.90%

Table 5.1: Target Deposit VS Actual Deposit

39
 Target Deposit VS Actual Deposit
800000000

700000000

600000000

500000000

400000000

300000000

200000000

100000000

0
2010 2011 2012 2013 2014 2015 2016 2017 2018

Target Deposit Total Deposit

Figure 5.1: Target Deposit VS Actual Deposit

This graph shows that the total target deposit and the actual deposit of Pubali Bank Limited,
Tangail main branch. Here I shall analyze the data for 10 years. In 2010, the bank fixed
there target 2300000000 taka but they did not reach their target. In that year 2010 the bank’s
collected deposit was 21,76,61,846.42 taka. In 2011 the bank fixed their target at 280000000
but that year the bank exceeded their deposit target. In 2012 the bank set up their deposit
target 350000000 taka but gained 39,12,28,390.28 taka. In 2013, 2014, 2015, 2016, 2017
and 2018 the bank’s target were respectively 430000000, 500000000, 570000000,
620000000, 670000000 and 750000000. The bank’s collected deposit were respectively
45,57,48,979.96, 47,14,57,917.63, 52,36,24,896.73, 63,93,52,959.08, 61,73,92,598.11 and
68,92,55,145.93. Here it can be seen that the total deposit is increasing every year except
2017 when the collected deposit was less than previous year. And the bank fulfilled their
target in 2011, 2012 and 2013.

40
5.2 Total Deposit and Its Growth Rate
Year Amount of Total Deposit Growth Rate

2010 21,76,61,846.42
2011 32,40,23,290.17 48.87%
2012 39,12,28,390.28 20.74%
2013 45,57,48,979.96 16.49%
2014 47,14,57,917.63 3.44%
2015 52,36,24,896.73 11.07%

2016 63,93,52,959.08 22.10%

2017 61,73,92,598.11 -3.43%

2018 68,92,55,145.93 11.63%

Table 5.2: Total Deposit and Its Growth Rate

Present year −Previous year

*Growth Rate = ×100
Previous year

41
 Deposit Growth Rate
60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
2010 2011 2012 2013 2014 2015 2016 2017 2018
-10.00%

Deposit Growth Rate

Figure 5.2: Deposit Growth Rate

This graph shows the growth rate of deposit of Pubali Bank Limited, Tangail main branch.
In the year 2011 to 2018 the growth rate were 48.87%, 20.74%, 16.49%, 3.44%, 11.07%,
22.10%, -3.43% and 11.63% particularly. All the year except 2017 the growth rate were
positive. Those positive growth rate express the high customer satisfaction of the bank. In
2016 the deposit amount was 63,93,52,959.08 but 2017 the deposit amount decreased at
61,73,92,598.11. That’s why the growth rate was negative. To consider this figure we can
say that bank’s growth rate of deposit is in good condition.

42
5.3 Target Loans VS Actual Loans of PBL, Tangail, Main Branch

Year Target Loan Actual Loan Target Gained

2010 12,00,00,000.00 13,21,56,090.85 110.13%

2011 15,00,00,000.00 17,59,45,892.89 117.29%
2012 19,00,00,000.00 14,64,12,140.68 77.06%
2013 17,00,00,000.00 17,49,92,108.47 102.94%
2014 23,00,00,000.00 26,83,35,107.17 116.67%
2015 35,00,00,000.00 46,13,33,963.22 131.82%

2016 55,00,00,000.00 60,38,27,524.78 109.79%

2017 62,00,00,000.00 59,81,47,269.70 96.47%

2018 70,00,00,000.00 59,81,12,781.39 85.44%

Table 5.3: Target Loans VS Actual Loans

43
 Actual Loans against Target Loans

800000000

700000000

600000000

500000000

400000000

300000000

200000000

100000000

0
2010 2011 2012 2013 2014 2015 2016 2017 2018

Target loan Actual Loan

Figure 5.3: Total Loans VS Actual Loans

This graph shows that the target loan and actual loan of Pubali Bank Limited, Tangail main
branch. Here I shall analyze the data for 10 years. In 2010, the bank fixed the amount of loan
disbursement target 1200000000 taka and they reached their target. In that year 2010 the
bank’s actual amount of loan was 13,21,56,090.85 taka and they exceeded their target. In
2011 the bank fixed their target at 150000000 and the actual amount of loan was
17,59,45,892.89 and that year the bank also exceeded their loan target. In 2012 the bank set
up their loan disbursement target 190000000 taka but disbursed 14,64,12,140.68 taka. In that
year the bank could not fulfilled the target. In 2013, 2014, 2015, 2016, 2017 and 2018 the
bank’s target were respectively 170000000, 230000000, 350000000, 550000000,
620000000 and 700000000. The bank’s disbursed loan amount were 17,49,92,108.47,
26,83,35,107.17, 46,13,33,963.22, 60,38,27,524.78, 59,81,47,269.70 and 59,81,12,781.39.
Here it can be seen that the loan disbursement amount is increasing every year. Except 2012
bank fulfilled their target when the actual loan was less than target.

44
5.4 Total Loans and Its Growth Rates

Year Total Loan Growth Rate

2010 13,21,56,090.85
2011 17,59,45,892.89 33.13%
2012 14,64,12,140.68 -16.78%
2013 17,49,92,108.47 19.52%
2014 26,83,35,107.17 53.34%
2015 46,13,33,963.22 71.92%

2016 60,38,27,524.78 30.88%

2017 59,81,47,269.70 -0.94%

2018 59,81,12,781.39 -5.76%

Table 5.4: Total Loans and Its Growth Rates

Present year −Previous year

*Growth Rate = ×100
Previous year

45
 Loans Growth Rate
80.00%

60.00%

40.00%

20.00%

0.00%
2011 2012 2013 2014 2015 2016 2017 2018

-20.00%

-40.00%

Loan Growth rate

Figure 5.4: Total Loans and Its Growth Rates

This graph shows the growth rate of loans of Pubali Bank Limited, Tangail main branch. In
the year 2011 to 2018 the growth rate were 33.13%, -16.78%, 19.52%, 53.34%, 71.92%,
30.88%, -0.94% and -5.76% particularly. All the year except 2012, 2017 and 2018 the
growth rate were positive. Those positive growth rate expresses the high customer
satisfaction of the bank. In 2012, 2017 and 2018 the deposit amount ware lower than the
previous year. That’s why the growth rate were negative subsequently.

46
5.5 Total Loan against Total Deposit of PBL, Main Branch, Tangail.
Year Total Deposit Total Loan Percentage

2010 21,76,61,846.42 13,21,56,090.85 60.71%

2011 32,40,23,290.17 17,59,45,892.89 54.30%

2012 39,12,28,390.28 14,64,12,140.68 37.42%
2013 45,57,48,979.96 17,49,92,108.47 38.40%
2014 47,14,57,917.63 26,83,35,107.17 56.92%
2015 52,36,24,896.73 46,13,33,963.22 88.10%
2016 63,93,52,959.08 60,38,27,524.78 94.44%

2017 61,73,92,598.11 59,81,47,269.70 96.88%

2018 68,92,55,145.93 59,81,12,781.39 86.785%

Table 5.5: Total Loan against Total Deposit

Total Loans against Total Deposit

800000000

700000000

600000000

500000000

400000000

300000000

200000000

100000000

0
2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Deposit Total Loan

Figure 5.5: Total Loans against Total Deposit

47
This graph shows that the total loan against the total deposit of Pubali Bank Limited,
Tangail main branch. Here I shall analyze the data for 10 years. In 2010 to 2018 the loans
were 60.71%, 54.30%, 37.42%, 38.40%, 56.92%, 88.10%, 94.44%, 96.88% and 86.785%
of total deposit. Here it can be seen that the total loan is increasing every year. It is a matter
of concern for PBL, Tangail main branch and the bank pay attention into the matter.

5.6 Recovery of Total Loan of PBL, Tangail Main Branch

Year Total Loan Recovery Of Loans Percentage

2010 13,21,56,090.85 13,21,56,090.85 100%

2011 17,59,45,892.89 17,59,45,892.89 100%

2012 14,64,12,140.68 14,64,12,140.68 100%
2013 17,49,92,108.47 17,49,92,108.47 100%
2014 26,83,35,107.17 26,83,35,107.17 100%

2015 46,13,33,963.22 46,00,46,207.20 99.72%

2016 60,38,27,524.78 60,32,86,106.00 99.91%

2017 59,81,47,269.70 51,82,88,179.03 86.64%

2018 59,81,12,781.39 52,25,04,733.6 87.36%

Table 5.6: Recovery of Total Loan

48
 Recovery Percentages
105%

100%

95%

90%

85%

80%

75%
2010 2011 2012 2013 2014 2015 2016 2017 2018

Recovery Percentages

Figure 5.6: Recovery of Total Loan

This graph shows the ratio of total loan and its recovery. In 2010 total loan was
13,21,56,090.85 Taka and 100% was recovered. In 2011, 2012, 2013 and 2014 loans and
advances were also recovered 100%. But in 2015, 2016, 2017 and 2018 were 99.72%,
99.91%, 86.64% and 87.36%. Here it can be seen that last two year non-recovery loan is
increasing. It is a matter of concern for PBL, Tangail main branch and the bank pay
attention into this matter.

5.7 Profit & Loss of PBL, Main Branch, Tangail

Year Net Profit Growth Rate

2014 15510570.89

2015 16903904.51 8.98%

2016 19000901.90 12.41%

2017 15321111.75 -19.37%

2018 13945974.99 -8.96%

Table 5.7: Profit & Loss of PBL

49
 Growth Rate of Profit
15.00%

10.00%

5.00%

0.00%
2015 2016 2017 2018
-5.00%

-10.00%

-15.00%

-20.00%

-25.00%

Growth Rate

Figure 5.7: Growth Rate of Profit

The graph shows the net profit and growth rate of the profit of Pubali bank, Tanagil main
branch. For unavailability of information for the years 2010 to 2013 couldn’t be shown here.
Here in 2014 the net profir is tk 1,55,10,570.89 and there was no growth rate as data for
2013 was not available. Net proft for 2015 was 1,69,03,904.51 and growth rate was 8.98%
which increased to 1,90,00,901.90 with a increased growth rate of 12.41% in 2016. The net
profits and growth rates for next two years decreased (respectively 1.53,21,111.75 and
-19.37%, 1,39,45,974.99 and -8.96%). In the first two years the profit was high because of
proper investment of deposits and the costs and default loans were lower. But in the next
two years the profit decreased in lieu of improper management of deposits, loan defaults and
higher increase in costs. Overall it can be said that though the profits and growth rates are
lower but on an average the profit is quite good than othar banks.

50
5.8 Findings of the Study
After analysis the report I have found some points that are given in the following.

 Main branch is getting first mover advantages in collection of deposit and to disburse
loan. That is why Main branch covers a huge number of customers.
 Their deposit condition is good because they can fulfill their target and sometime
near to target. Their deposit growth rate is also in good condition.
 They are also good in loan disbursement and recovery of loan. In 2010 to 2014 they
recover their 100% disburse loan. But last two year there is some problem.
 The growth rate of loan disbursement is also in good condition. It is increasing year
to year.
 The amount of loans and advances against deposit was comparatively low but last
four year they are in good condition. Loan disbursement process is long term process
and manual also.
 In case of loan in different sectors the rate of interest is too high. Because the rate of
interest in Small Business Loan is 14% and Pubali House Repairing Loan is 12%,
which all the rate of interest are higher than that of other some banks.
 The Bank has more tendencies to provide loan to the businessman than other sector.
 In terms of law and order sometimes it is very difficult for the bank to liquidate the
collateral, which makes the borrowers unable to pay the debt.
 The bank does not provide adequate loan in the small and cottage industry and the
agricultural, Fishing, and Forestry also.
 Installment period and installment time duration is relatively low. Because the
installment time duration is monthly or 6th periods in a year for this reason borrower
cannot utilize their debt facility properly for profit maximization.
 Not enough innovative products.

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 CHAPTER SIX

Conclusion and Recommendations

6.1 Conclusion
Pubali Bank Limited is the bank which is highly potential commercial Bank of Bangladesh.
This bank performs important banking and non-banking activities for both the pPBLic and
the government as a whole. This three months internship program at PBL will definitely
help me to realize my future carrier in the job market. I have tried by best to incorporate this
internship report with necessary relevant information.
Deposit collection and loan disbursement is the main function of a Bank. Banks collects
deposit from its client and then invests others to make profit. Actually deposit does not
create profit. It just create fund of a bank. Investment is the main source of earning for all
commercial banks. Being interest free banking system, Pubali Bank invests its fund on the
basis of profit-loss sharing system. Pubali Bank collect deposit from mainly three deposit
systems like fixed deposit, Time deposit and a numerous Scheme. It also follows several
policies of investment in the Islamic Financial System. The patterns of modes of investment
differ from one to another. Credit department diversified their loans in different sectors
classified by them. Among the sectors the bank doesn’t provide more loans in the
agricultural side. The reason showed that this sector is very risky and depends on natural
climate and still didn’t expand their service in the rural side. The bank also does not provide
more loan in the small & cottage industry. The reason is that the return from this sector is
not very good and also the sector is very uncertain. The bank provides most of the credit
facility in term loan mainly in long-term loans. Return from short-term loan is very good
and also proves to be very safe to finance.

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6.2 Recommendations
During my Three month Internship, it has felt that there is some problem in the Main
Branch. With a view to ensure exciting services and opening up the new window of
progression as well as uplift, It would like to present the PBL, Main Branch, Tangail, with
several suggestions like:
1. The branch is not well decorated and there is not sufficient employee. So they
have to take initiative to solve these problem.
2. The security must be valued properly by the independent values and constantly
watched so that the value of mortgage property becomes sufficient to recover the
default loan.
3. Prompt legal actions should be taken against willful loan defaulters so that loan
can be recovered easily.
4. The new entrepreneurs should be encouraged in disturbing loans and those who
have the records of regular payment, should be given preference.
5. Special training should be arranged to develop the efficiency of the employees
who are engaged in loan and advance department.
6. They should give more SME loan to the client so that the small & medium
entrepreneur gets investments facilities from the bank. But the bank has to be
much astute because default rate of SME is higher than general loan.
7. PBL has some attractive deposit schemes but it can be more to compare
themselves from others Bank.
8. PBL is giving equal focus on all schemes; so they should try to update all types
of deposit schemes and the bank has to improve their deposit policy. The deposit
of the bank should be more diversified.
9. Launch a different marketing strategy to be acquainted with new products to the
existing clients and prospective clients.
10. Account opening process should be easier.

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Bibliography
1. http://www.pubalibangla.com
2. Statement of affairs, PBL, main branch, Tangail 2010
3. Statement of affairs, PBL, main branch, Tangail 2011
4. Statement of affairs, PBL, main branch, Tangail 2012
5. Statement of affairs, PBL, main branch, Tangail 2013
6. Statement of affairs, PBL, main branch, Tangail 2014
7. Statement of affairs, PBL, main branch, Tangail 2015
8. Statement of affairs, PBL, main branch, Tangail 2016
9. Statement of affairs, PBL, main branch, Tangail 2017
10. Statement of affairs, PBL, main branch, Tangail 2018

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