Table of Contents

SL. No Particular Page No.

Executive Summery
Chapter One – Introduction
1 1.1 Background of the study
1.2 Origin of the Report
1.3 Scope of the Report
1.4 Rationale of the Study
1.5 Problem Statement
1.6 Objective of the Report
1.7 Limitations of the Report
Chapter Two – Methodology of the Report
2 2.1 Methodology
2.2 Collection of Data
2.3 Sources of Data
2.4 Time Frame
2.4 Data Processing & Analysis
Chapter Three – Organizational Profile
3 3.1 Historical Background of BKB
3.2 Vision Mission of Bangladesh Krishi Bank
3.3 Objectives of BKB
3.4 Corporate Strategy of BKB
3.5 Nature of the Business
3.6 Organizational Structure of BKB
3.7 BKB at a Glance
3.8 Managerial Hierarchy
3.9 Organogram of the Employees in BKB
3.10 Board of Directors
Chapter Four- Deposit Collection & Loan Disbursement Procedures of BKB
4 4.1 Deposit Section
4.1.1 Deposit Account of BKB
4.2 Deposit Collection Procedure
4.2.1 Account Opening Requirement/ Condition
4.3.1 Deposit Schemes of BKB
4.3.2 Interest Rates for Deposit Schemes
4.4.1 Loan
4.4.2 Types of Loan of BKB
4.5.1 Consumers Loan Scheme of BKB
4.5.2 Interest rate for loan product
4.6 Loan Disbursement Procedure
Chapter Five – Deposit and Loan Analysis & Findings
5 5.1 Target Profit VS Actual Profit
5.2 Total Deposit and Its Growth Rate
5.3 Target Loan VS Actual Loan
 5.4 Total Loan and Its Growth Rate
5.5 Total Loan against Total Deposit
5.6 Recovery of Total Loan
5.7 Profit & Loss of BKB
5.8 Findings of the Study
Chapter Six– Conclusion and Recommendations
6 6.1 Conclusion
6.2 Recommendations
Bibliography

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 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

List of abbreviations

BKB Bangladesh Krishi Bank

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

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 Bangladesh
Krishi Bank,Kashigonj Bazar Branch,Tarakanda,Mymensingh. 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 Bangladesh Krishi Bank,Kashigonj Bazar Branch,Tarakanda,Mymensingh
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 Bngladesh Krishi
Bank”. The report covers the Deposit collection and Loan disbursement procedure of Bangladesh Krishi
Bank. 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 are the purpose of this study. The performance of the bank in recent years will be also included. It
also helpful to find out different credit facilities that Bangladesh Krishi 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 at Bangladesh Krishi Bank,Kashigonj Bazar Branch,Tarakanda,Mymensingh.
Internal supervisor, Md. Al Amin, Lecturer, 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 Bangladesh Krishi Bank”.

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 at Bangladesh Krishi Bank,Kashigonj Bazar
Branch,Tarakanda,Mymensingh. This report is a project on specific process which is “Deposit Collection
and Loan Disbursement Procedures of Bangladesh Krishi Bank ”. The Report also includes an overview
of Bangladesh Krishi Bank.

1.3 Scope of the Study

Bangladesh Krishi Bank 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 Bangladesh Krishi Bank,Kashigonj Bazar
Branch,Tarakanda,Mymensingh.

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.

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
Bangladesh Krishi Bank,Kashigonj Bazar Branch,Tarakanda,Mymensingh.

Specific Objectives:
The specific objectives of this report are:

1. To learn about the deposit collection process by Bangladesh Krishi Bank,Kashigonj Bazar
Branch,Tarakanda,Mymensingh.

2. To learn about the loan disbursement process by BKB,Kashigonj Bazar

Branch,Tarakanda,Mymensingh.

3. To evaluate the performance of BKB(Kahigonj Bazar 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.

 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 Bangladesh Krishi
Bank of Kashigonj Bazar Branch. Secondary data (Annual Reports) have been collected through on
internet. And statements of affairs are provided by the Branch.

2.3 Sources of Data

Data is collected from the primary and secondary sources.

Primary Sources:

 Face to face conversation with the respective officers

 Direct Observation

 Practical desk work

Secondary Sources:

 Statement of affairs of Bangladesh Krishi Bank,Kashigonj Bazar Branch,Mymensigh.

 Internal server and external websites of BKB.

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.

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.

 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.

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.

3.7 PBL at a Glance

SL no Key Point Particulars

01 Name of the Bank Bangladesh Krishi bank

02 Logo of the Bank

3 Establishment 1973(Presidents order of 1973)

04 Status Specialized Bank
05 Chairman Khandakar Ibrahim Khaled

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

07 Number of Branches 952

08 Corporate Head Office Pubali Bank Bhaban

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

09 Corporate Website & Email www.krishibank.org.bd

bkb@citechco.net

10 Authorized Capital 15000000000

11 Paid up Capital 9000000000