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
Kashigonj Bazar 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 Vision Bangladesh Krishi Bank

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 BKB

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 BKB

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; Bangladesh Krishi Bank. BKB 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 BKB

Bangladesh Krishi Bank 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 BKB.

3.7 BKB 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 Honorable Chairman Mr. Mohammad Ismail

06 Honorable Managing Director Mr. Md. Ali Hossain Prodhania

07 Number of Branches 952

08 Corporate Head Office Bangladesh Krishi Bank,

Head Office(Krishi Bank Bhaban),83-85,
Motijheel C/A,
Dhaka-1000,
Bangladesh.

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

bkb@citechco.net

10 Authorized Capital TK. 1500.00 Crore

11 Paid up Capital TK. 1150.00 Crore

3.9 Organogram of the Employees in BKB

GM

DGM AGM: 2 Foreign

DGM GENERAL Advance Exchange
BANKING
 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 BKB

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 Notice Deposit (SND)

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.

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 Notice Deposit (SND):

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 SND 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.

 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 Bangladesh Krishi Bank.

 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/-

 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 BKB

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

4.3.2 Interest Rates for Deposit Schemes

SL Product Description Interest
Rate
01 Saving Bank Account Urban3.50%,
. Rural 3.50%
02 Special Notice Deposit Less than 100.00 Crore Urban
. 4.00%,
Rural 4.00%
100.00 Crore or above Urban
4.00%,
Rural 4.00%
03 Deposit Pension 15.00%
. Scheme
04 Pubali Pension Scheme 3 Years 7.50%
. 5 Years 8.50%
7 Years 9.00%
10 Years 9.00%
05 Pubali Sanchay 5 Years 8.50%
. Prokalpo 10 Years 9.00%
06 Student savings 1% hihger
. account than savings
rate
07 Small savings scheme 5 Years 6.00%
.
08 BKB Monthly Profit 3/5 Years 10.80%
. Scheme(Old)
09 BKB Double Profit 8.50%
. Scheme
10 Pubali Shawpna Puran 8.50%
.
11 FDR for 100 Days For any amount 7.50%
.
12 Fixed Deposit Receipt From 3(three)months and above but less than 5.75%
. 6 months
From 6 months and above but less than 1 year 5.85%
From 1 year but less than 2 years 6.00%
From 2 year but maximum 3 years 6.25%
4.4.1 Loan

Loan granted by Bangladesh krishi 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 BKB

 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

 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

4.5.1 Consumers Loan Scheme of BKB

 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%

09 All Export Loan 7.00%
.
10 Agriculture a) i) Crops Production(Dal, 4.00%
. Credit 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 Rearing 9.00%

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%
.
**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

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

CHAPTER FIVE

Deposit & Loan Analysis and Findings

5.1 Target Deposit VS Actual Deposit of BKB,Mymensingh,Kashigonj Bazar Branch

Year Target Deposit Actual Deposit Target Gained

2016 35,00,00,000.00 39,12,28,390.28 111.77%
2017 43,00,00,000.00 45,57,48,979.96 105.98%
2018 50,00,00,000.00 47,14,57,917.63 94.29%
2019 57,00,00,000.00 52,36,24,896.73 91.86%
2020 62,00,00,000.00 63,93,52,959.08 103.12%

Table 5.1: Target Deposit VS Actual Deposit

 Target Deposit VS Actual Deposit
700000000

600000000

500000000

400000000

300000000

200000000

100000000

0
2016 2017 2018 2019 2020

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 Bangladesh Krishi
Bank,Kahigonj Branch. Here I shall analyze the data for 5 years.. In 2016 the bank set up their
deposit target 350000000 taka but gained 39,12,28,390.28 taka. In 2017, 2018, 2019 and 2020
the bank’s target were respectively 430000000, 500000000, 570000000, 620000000. The
bank’s collected deposit were respectively 45,57,48,979.96, 47,14,57,917.63, 52,36,24,896.73
and 63,93,52,959.08. Here it can be seen that the total deposit is increasing every year. And
the bank fulfilled their target in 2016 and 2017.

5.2 Total Deposit and Its Growth Rate

Year Amount of Total Deposit Growth Rate
2016 39,12,28,390.28
2017 45,57,48,979.96 16.49%
2018 47,14,57,917.63 3.44%
2019 52,36,24,896.73 11.07%
2020 63,93,52,959.08 22.10%

Table 5.2: Total Deposit and Its Growth Rate

Present year −Previous year

*Growth Rate = ×100
Previous year
 Deposit Growth Rate
25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2016 2017 2018 2019 2020

Deposit Growth Rate

Figure 5.2: Deposit Growth Rate

This graph shows the growth rate of Babngladesh Krishi Bank,Mymensingh,Kashigonj Bazar
Branch. In the year 2016 to 2020 the growth rate were 20.74%, 16.49%, 3.44%, 11.07% and
22.10% particularly. Those positive growth rate express the high customer satisfaction of the
bank. In 2020 the deposit amount was 63,93,52,959.08. To consider this figure we can say that
bank’s growth rate of deposit is in good condition.
5.3 Target Loans VS Actual Loans of BKB,Mymensingh,Kashigonj Bazar Branch

Year Target Loan Actual Loan Target Gained

2016 19,00,00,000.00 14,64,12,140.68 77.06%
2017 17,00,00,000.00 17,49,92,108.47 102.94%
2018 23,00,00,000.00 26,83,35,107.17 116.67%
2019 35,00,00,000.00 46,13,33,963.22 131.82%
2020 55,00,00,000.00 60,38,27,524.78 109.79%

Table 5.3: Target Loans VS Actual Loans

Actual Loans against Target Loans

700000000

600000000

500000000

400000000

300000000

200000000

100000000

0
2016 2017 2018 2019 2016

Target loan Actual Loan

 Figure 5.3: Total Loans VS Actual Loans

This graph shows that the target loan and actual loan of Babngladesh Krishi
Bank,Mymensingh,Kashigonj Bazar Branch. Here I shall analyze the data for 5 years. In 2016 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 2017, 2018, 2019 and 2020 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 and 60,38,27,524.78. Here it can be seen that the loan disbursement amount is
increasing every year. Except 2016 bank fulfilled their target when the actual loan was less
than target.

5.4 Total Loans and Its Growth Rates

Year Total Loan Growth Rate

2016 14,64,12,140.68
2017 17,49,92,108.47 19.52%
2018 26,83,35,107.17 53.34%
2019 46,13,33,963.22 71.92%
2020 60,38,27,524.78 30.88%

Table 5.4: Total Loans and Its Growth Rates

Present year −Previous year

*Growth Rate = ×100
Previous year
 Loans Growth Rate
80.00%

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
2016 2017 2018 2019 2020

Loan Growth rate

Figure 5.4: Total Loans and Its Growth Rates

This graph shows the growth rate of loans of Babngladesh Krishi Bank,Mymensingh,Kashigonj
Bazar Branch. In the year 2017 to 20120 the growth rate were 19.52%, 53.34%, 71.92% and
30.88% particularly. All the year the growth rate were positive. Those positive growth rate
expresses the high customer satisfaction of the bank.
5.5 Total Loan against Total Deposit of BKB,Mymensingh,Kashigonj Bazar Branch.

Year Total Deposit Total Loan Percentage

2016 39,12,28,390.28 14,64,12,140.68 37.42%
2017 45,57,48,979.96 17,49,92,108.47 38.40%
2018 47,14,57,917.63 26,83,35,107.17 56.92%
2019 52,36,24,896.73 46,13,33,963.22 88.10%
2020 63,93,52,959.08 60,38,27,524.78 94.44%

Table 5.5: Total Loan against Total Deposit

 Total Loans against Total Deposit
700000000

600000000

500000000

400000000

300000000

200000000

100000000

0
2016 2017 2018 2019 2020

Total Deposit Total Loan

Figure 5.5: Total Loans against Total Deposit

This graph shows that the total loan against the total deposit of Babngladesh Krishi
Bank,Mymensingh,Kashigonj Bazar Branch. Here I shall analyze the data for 5 years. In 2016 to
2020 the loans were 37.42%, 38.40%, 56.92%, 88.10% and 94.44% of total deposit. Here it can
be seen that the total loan is increasing every year. It is a matter of concern for
BKB,Mymensingh,Kashigonj Bazar Branch and the bank pay attention into the matter.
5.6 Recovery of Total Loan of BKB,Mymensingh,Kashigonj Bazar Branch

Year Total Loan Recovery Of Loans Percentage

2016 14,64,12,140.68 14,64,12,140.68 100%
2017 17,49,92,108.47 17,49,92,108.47 100%
2018 26,83,35,107.17 26,83,35,107.17 100%

2019 46,13,33,963.22 46,00,46,207.20 99.72%

2020 60,38,27,524.78 60,32,86,106.00 99.91%

Table 5.6: Recovery of Total Loan

Recovery Percentages
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2016 2017 2018 2019 2020

Recovery Percentages
 Figure 5.6: Recovery of Total Loan

This graph shows the ratio of total loan and its recovery. In 2016, 2017 and 2018 loans and
advances were also recovered 100%. But in 2019 and 2020 were 99.72% and 99.91%. Here it
can be seen that last two year non-recovery loan is increasing. It is a matter of concern for
BKB,Mymensingh,Kashigonj Bazar Branch and the bank pay attention into this matter.

5.7 Profit & Loss of BKB,Mymensingh,Kashigonj Bazar Branch

Year Net Profit Growth Rate

2018 15510570.89
2019 16903904.51 8.98%
2020 19000901.90 12.41%

Table 5.7: Profit & Loss of PBL

 Growth Rate of Profit
14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2019 2020

Growth Rate

Figure 5.7: Growth Rate of Profit

The graph shows the net profit and growth rate of the profit of Babngladesh Krishi
Bank,Mymensingh,Kashigonj Bazar Branch. For unavailability of information for the years 2016
and 2017 couldn’t be shown here. Here in 2018 the net profir is tk 1,55,10,570.89 and there
was no growth rate as data for 2017 was not available. Net proft for 2019 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 2020. Overall it can be said that an average the profit is quite good than othar banks.
5.8 Findings of the Study
After analysis the report I have found some points that are given in the following.
 BKB,Kashigonj Bazar Branch is getting first mover advantages in collection of deposit and
to disburse loan because it situated in rural area. That is why this 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 2016 to 2018 they
recover their 100% disburse loan.
 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 two
yeas 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% 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 provide adequate loan in the small and cottage industry and the agricultural,
Fishing, and Forestry also.
 Not enough innovative products.
 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.
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.