Internship Report Rezwan

Internship Report
An Internship Report
On
Diversified Portfolio
&
SME Banking
of
“Diversified Portfolio & SME Banking of Eastern Bank Limited” 1

Internship Report
Prepared for
Rubiat Begum
Lecturer in Finance
Faculty of Business Studies
Bangladesh University of Business & Technology (BUBT)
Prepared by
Md. Rezwan Kabir

ID no. 02033101015
BBA Program
1st Intake

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Date:___________
Date:___________
Mrs. Rubiat Begum

Lecturer in Finance
Faculty of Business Studies
Mirpur
Dhaka-1216
Subject: Submission of Internship Report on “Diversified Portfolio & SME

Banking of Eastern Bank Limited”.
Dear Madam:
This is my pleasure to present my Internship Report on “Diversified Portfolio &

SME Banking of Eastern Bank Limited (EBL)" that you have asked me to
prepare as an internship report.
The report shows an analysis and overview of the subject. In preparing the report
I tried to gather information which was most complete and relevant.
I have great hope that the report will meet your expectation and aid you in
getting a clearer idea about the subject. I will take immense pleasure in
providing you with any queries you have regarding the study.
I gained some valuable knowledge and experience while working on this report
and I glad to have the opportunity to prepare this report for you.
Sincerely Yours’
______________
Md. Rezwan Kabir
ID no. 02033101015

Internship Report
BBA Program
1st Intake
ACKNOWLEDGEMENT
Success is only possible where there is an engaged heart. In preparing this report,
it was evident that the engaged heart of mine alone was not enough. I needed the
support of significant others. It is therefore, difficult not to devote a page of this
text acknowledging the assistance we received from number of people.
First of all, I would like to express my deep gratitude to the almighty Allah for
fruitfully preparing this internship report.
And then it is important to give credit to my supervisors Mrs. Rubiat Begum,

Lecturer in Finance, faculty of business studies at BUBT. For her guidance,
constant supervision, constructive suggestions and moral support it is possible to
prepare this report.
I am very much thankful to all the persons of EBL who help me to complete my
internship in a meaningful way, without their help it was not possible for me to
complete my internship as well as the report.
The management of Sonargaon road SME had been extremely helpful in

providing necessary documents, annual report, statements, and brochure etc.
which have helped me lot for preparing this Internship report. I would like to
convey my appreciation and thanks for those who have guided me generously
with the right knowledge for this report. Shower of thanks to those entire
respondents who responded each and every time in collecting necessary data.

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“Table of Contents”
Topics Page
EXECUTIVE SUMMARY 07
Chapter- 1
Introduction
Origin of the Report
Statement of the report
Rational of the study 08-13
Objectives of the study
Scope of the study
Methodology
Sources and methods of data collection
Limitations of the study
Chapter- 2
An Overview Of Eastern Bank Limited (EBL)
Vision 14-17
Mission
Values
Job Level
Chapter- 3
Diversified Portfolio of EBL:
Consumer Banking 18-33
Corporate Banking
SME Banking
Chapter- 4

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SME Banking:
The Case for the SMEs
Place of SMEs in the National Economy of Bangladesh 34-41
The importance of the SME sector
Current Scenario of SME financing in Bangladesh
SME Banking of EBL:
Products and Services (Mid Segments)
Products (Small Segments)
Chapter- 5 42-44
CREDIT RATING REPORT OF EASTERN BANK LTD.
Chapter- 6 45-52
FINANCIAL HIGHLIGHTS OF EBL
Chapter- 7 53-56
CONCLUSION
Chapter-8 57
Bibliography

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EXECUTIVE SUMMARY
This is an internship report based on the internship program took place in

Eastern Bank Limited at Sonargaon Road in SME Banking. The main objective of
this report is to analysis the diversified portfolio and SME Banking of EBL.
I start my internship to the 16 th of August with an Office order issued by the HR

of EBL. Initially I started my internship at Principal Branch’s SME Banking then
I was shifted to the Sonargaon Road SME Banking.
In a word Sonargaon road SME Banking serves its customers through two
segments; Small Segments and Mid Segments.
I got only three months to gather practical knowledge from this branch, although
it was too difficult to gather maximum and proper knowledge within this short
range of time.
I tried my best to study the materials related with my topic and observed import
and export performed by EBL, SME and examine relevant official and others
published and unpublished data, annual reports of EBL, in order to prepare this
report.
I have equally faced co-

co-operation and many obstacles simultaneously. I hope this
report would be able to portray the real status of “Diversified Portfolio & SME
Banking of Eastern Bank LTD.” My effort will be meaningful if this report serves
the purpose effectively.

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I have faced new challenge in every steps of banking procedure. I also tried to
overcome in every case. I tried to present all the banking activities that I have
came across during my internship program.

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1.0 INTRODUCTION
This internship program was my on the job exposure and provided me with
learning experience and knowledge in several areas. During the first few weeks
of my internship period, I was able to get accustomed to the working environment
of the Bank. As the internship continued, I not only learned about the activities
and operations of correspondent Bank, but also gathered some knowledge about
the basic business of banking in first one month of my internship period.
EBL pursues centralized management policies and gives adequate work freedom
to the employees. This result in less pressure for the workers and acts as a
motivational tool for them, also gives them encouragement and inspiration to
move up the ladder of success. Overall, I have experienced a very friendly and
supporting environment at EBL, which gave me the pleasure and satisfaction to
be a part of them for a while.
While working in here found each and every employee is friendly to me to

cooperate. They have discussed in details about their respective tasks. I also
participated with their works. So I learnt the operations regarding their works.
1.1 Origin of the Report:
The report named “Diversified portfolio & SME Banking” of Eastern Bank Limited
was offered on August 16, 2007 as a requirement for the completion of the
Internship program as a student BBA program of Bangladesh University of
Business & Technology (BUBT).
The primary goal of the internship program is to provide the intern with the job
experience by orienting the intern with the organization and an opportunity for the
intern to relate the theoretical conceptions in the real business environment. The
program covers a period of three months of period. The duration of the internship

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attachment with the organization was from August 16, 2007 to November 16,
2007.
1.2 Statement of the report:
Small and Medium Enterprises (SME) in Bangladesh contributed 25% of gross

domestic product (GDP) and 80% of the industrial jobs of the country in 2004.
According to ADB, the country's estimated 6 million SMEs and micro enterprises
firms of less than 100 employees have a significant role in generating growth and
jobs. This is a sector that has its own distinct needs and requires specialized
focus. Eastern Bank Ltd. (EBL) has launched SME Banking in early 2005 with
this view in mind. EBL Provides:
 SMEs with easy access to financing.

 Deliver products that ensure superior returns to our customers.
 Orient customers with industry trends, regulatory issues etc, for their
success.
 Value long-term relationship banking.
1.3 Rational of the study:
Bank is the heart of the economics and banking is the blood circulation of
country’s economic growth. Banks perform a significant role to serve the needs
of the society in different sectors, such as: capital formation, large scale of
production, industrialization, growth of trade and commerce etc. and banks are
contributing a lot of aspect.
EBL has already emerged as one of the world wide recognized banks due to its
foreign exchange and foreign trade trend according to their banking principles.
SME banking is a new diminution of banking where ‘Small & Medium businesses

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are highly focused. So I tried to represent their performance and problems and
prospects.
1.4 Objectives of the study:
The objectives of this research paper are as below:
To acquire practical knowledge about the overall activities of SME

Banking of EBL.
To have a general idea about bank in terms of different functions and gain
experience on different functional departments.
To cover a comprehensive analysis of different Segments of EBL.
To study and understand the various services offered by this bank to its
clients.
To study how EBL has maintained growth in its banking business by

maintaining and enhancing its relationship with its clients.
To highlight the problems and necessary recommendations to overcome

the problems.
To know the performance of EBL in every aspects.
To understand the banking environment of private commercial bank in

Bangladesh.
By applying the theoretical knowledge in the bank to recommend on banks

operations and management.
1.5 Scope of the study:

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The scope of the study includes problems and prospects Eastern Bank Limited.
Eastern Bank Limited has 25 branches at present. Being centralized bank all the
branches treaded as AD to perform foreign exchange and foreign trade activities.
The study on mentioned topic was conducted at Sonargaon road SME banking of
with a view to find out the problems and prospects of EBL.
1.6 Methodology
In this study, exploratory research was undertaken to gain insights and

understanding of the overall different SME banking system and also to determine
some of the attributes of service quality in Banks. After that a more
comprehensive conclusive research was undertaken to fulfill the main purpose of
the study.
1.6.1 Sources and methods of data collection:
Both primary and secondary sources have been utilized for collecting
necessary data to scrutinize EBL. Primary sources include face-to-face
interview with respective officials. Secondary sources consist of several
reading materials, such as journals, brochures, and annual reports.
1) Primary sources:
(A) Official record.

(B) Oral and informal interview of officials and employees in EBL.
2) Secondary Sources:

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(A) Annual report of EBL.

(B) Printed forms and documentation supplied by EBL.
(C) Different bruisers of EBL.
(D) Relevant books, journals, booklets etc.
1.8 Limitations of the study:
One of the crucial limitations is time constraint. As I posted in the Sonargaon

road SME banking initially it was difficult for me to collect related documents and
necessary data. Finally, lack of previous experience in this area was another
limitation. Except these there are many points, those are given below:
SME banking is very busy as well as confidential regarding to some

important project, so getting adequate relevant information is difficult.
Unavailability of sufficient written documents as required making a

comprehensive study.
Lack of in depth understanding of banking activities that prevents me from

going into details.
Lack of enough information on head office since I am working in a branch.
Lack of time.
Lack of required data.
Lack of knowledge.

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2. AN OVERVIEW OF EASTERN BANK LIMITED (EBL)
VISION
To become the Bank of Choice by transforming the way we do

business and developing a truly unique financial institution that
delivers superior growth and financial performance and be that
most recognizable brand in the financial services industry in
Bangladesh.
MISSION
 We will constantly challenge our systems, procedures and

training to maintain a cohesive and professional tem in
achieving service per excellence.
 We will create an enabling environment and embrace a team
based culture where people will excel.
 We will ensure to maximize shareholders’ value.
 We will deliver service par excellence to all our customers,
both internal and external.
VALUES
Service Excellence
Openness
Trust
Commitment
Integrity
Responsible Corporate Citizen

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Service Excellence
We passionately drive customer delight.

We use customer satisfaction to accelerate growth.
We believe in change to bring in timely solution.
Openness
We share the business plan

We encourage two way communications
We recognized achievements, celebrate results
Trust
We care for each other

We share learning/knowledge
We empower our people
Commitment
We know our road map

We believe in ‘continuous improvement’
We do not wait to be told
Integrity
We say what we believe in

We respect every relationship
We do not abuse ‘information power’
Responsible corporate Citizen
We are tax-abiding citizen

We conform to all law, norms, sentiments and values of the land
We promote protection of the environment for our children

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Job Level
Deputy Managing Director (DMD)
Senior Executive Vice President (SEVP)
Executive Vice President (EVP)
Senior Vice President (SVP)
Vice President (VP)
Senior Assistant Vice President (SAVP)
First Assistant Vice President (FAVP)
Assistant Vice President (AVP)
Senior Principal Officer (SPO)
Principal Officer (PO)
Management Trainee Officer (MTO)
Senior Officer (SO)
Officer (O)
Supervisory Officer (SO)
Junior Officer (JO)

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Diversified Portfolio of Eastern Bank Ltd.
Consumer Banking:
EBL Consumer Banking deals with the day to day financial wants of the
consumer clients. Our consumer banking products are designed keeping in
mind the financial necessities and affordability of the clients. The new IT
platform of EBL has enabled its Consumer Banking to offer world class and
comprehensive range of financial products and services. These have been
fashioned in a manner to fulfill our clients' banking needs with dedicated
Relationship Managers who are reaching out to the customers to make sure
that the job is done in a systematic manner within the clients time frame.
And with our EBL internet banking service, you can now access your EBL
accounts and EBL’s services at the click of your mouse
Products:
 Current Account
 Savings Account
 Fixed deposit Account
 Savings Insurance Account
 High Performance Account
 Monthly Income Plan
 Monthly Deposit Plan
 Fast Cash
 Fast Loan
 Executive Loan
 Auto Loan
Current Account:
EBL Current Account is a non-interest bearing account suitable for both

corporate and consumer clients. It allows unlimited cash withdrawal facility
for customers from any of the 22 EBL branches across the country. There is a
minimum balance requirement of Tk. 1.000.00 for maintaining a current
account
Savings Account:
EBL Savings Account is suitably designed to meet the savings requirement of

the consumer customers willing to save from their hard earned income. It
pays interest at competitive rate matching the needs of the customers.
Savings Account is very easy to open and can be operated from any EBL
branch giving the customers the demographic flexibility. Minimum balance
requirement for a savings account is Tk. 15,000.00.

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Fixed Deposit:
EBL Fixed Deposits having flexible tenure ranging from one month to three
years allow the customers to get more out of their long term investment.
Keeping in mind the income requirement of the customers EBL offers high
interest rates. It is very simple to open a fixed deposit account from any EBL
branch.
High Performance Account:
You keep a minimum balance of Tk.20, 000.00 under this account. We offer
very competitive rates that are tiered into two slabs for deposits up to Tk. 10
lacs and above Tk. 10 lacs.
The interest on your account is calculated on a daily basis and added to your
deposit half yearly. If your deposit goes below the Tk. 20,000 limit on any
day then you lose interest for that day.
As the EBL High Performance Account is a hybrid account that conjoins the
security and growth of a Savings Account with the convenience of a Current
Account you get more out of your money while you enjoy the convenience of
unlimited cash withdrawal.
You get the highest interest rate on your deposit compared to other similar
accounts on offer in the market. EBL High Performance Account is available
at all the EBL branches in every major city
Monthly Income Plan (MIP):
EBL Monthly Income Plan is an income plan which helps you to earn a
monthly fixed amount on your fixed deposits kept with EBL for a period of 3
years.
All you need to do is keep TK 50,000/- or multiples of it for a period of 3

years. You will earn TK. 328/-(After deduction of Tax) per month on every
deposit of TK. 50,000/-, or TK. 525/-(After deduction of Tax) per month on
every deposit of TK. 100,000/- for a period of 3 years. You can open any
number of MIP of TK 50,000/- or multiples of TK 50,000/-
Monthly fixed interests will be automatically credited to your linked personal

Current /Savings/High Performance account on due date.
General information of Monthly Income Plan (MIP):
1. Easy procedure to open MIP

2. Customer must be a Bangladeshi citizen
3. Over 18 years of age

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4. Must be an Account Holder of EBL

5. Customer must appoint a Nominee
6. Minimum balance of MIP is TK 50,000/-
7. Maximum balance any amount in multiples of TK 50,000/
8. A competitive interest rate of 7% per annum.
9. Minimum and maximum period of MIP is 3 years or 36 months
10. Auto renewal of MIP after three years unless advised otherwise
by you
11. Upto 90% Loan facility in the form of EBL FastCash/FastLoan
against MIP principal amount
12. Account access from any EBL branch
EBL Monthly Deposit Plan (MDP):
EBL Monthly Deposit Plan is a savings plan which helps you to turn your
small monthly savings into a large amount over a period of 5 years. It is a
convenient savings mode which helps your money to grow. To open a
Monthly Deposit Plan all you need to do is choose any of the six monthly
deposit amount options. You may choose more than one Monthly Deposit
Plan of different denomination.
You do not have to turn up to the branch for monthly deposit payments.
Monthly deposit will be automatically debited from your linked
Current/Savings/High Performance account by standing instruction on due
dates.
General information of Monthly Deposit Plan (MDP):

1. Easy procedure to open MDP
2. Must be a Bangladeshi citizen
4. Must be an Account Holder of EBL
5. Customer must appoint a Nominee
6. Minimum monthly deposit amount is TK 500/-
7. Maximum monthly deposit amount is TK 5,000/-
8. Other Monthly Deposit options are TK 1,000/-, TK 2,000/-, TK 3,000/-
& TK 4,000/-
9. Minimum and maximum period of MDP is 5 years or 60 months
10. A competitive interest @ 7.00% compounded monthly
11. Up to 80% Loan facility in the form of FastCash/FastLoan
against MDP Deposits after 2 years
12. Account access from any EBL Branch
EBL Fast Cash:
EBL Fast Cash is a revolving credit facility. FastCash allows the customer to
draw up to a predetermined amount of credit from their Current Account.
Customers will only be charged interest for the amount they draw. The
minimum limit for EBL FastCash is Tk. 50,000.00

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General information of EBL FastCash:
1. Simple documentation to avail FastCash

2. You must be a Bangladeshi citizen
4. You must be an Account Holder of EBL
5. Minimum overdraft limit is TK 50,000/-
6. Maximum overdraft limit is TK 5,000,000/-
7. EBL FDR interest rate + 2.75%: For others
securities 11.00% per annum
8. Interest is charged only on the withdrawn amount
9. Loan is sanctioned within 24 hours of application
10. Up to 90% loan facility of the offered security
11. Loan tenure is one year which is renewable
12. Account access from any EBL branch
Accepted Securities:
 EBL Fixed Deposit Receipts (FDR)

 ICB Unit Certificates
 Wage Earners Development Bonds
EBL Executive Loan:
EBL Executive Loan is any purpose EMI (equated monthly installment) based
credit facility for salaried executives.
No Cash Security No Down payments No Price Quotation/ Invoice required
Amount: Maximum 6 times gross monthly salary
 Tk. 50,000/- to 10,00,000/- for Salary A/C holders and lien of

Terminal Benefits
 Tk. 50,000/- to 6,00,000/- for Salary A/C holders.
 Tk. 50,000/- to 5,00,000/- for loan against Post-dated
cheques and 1 Personal Guarantee.
Interest rate:
 13.25% for Salary A/C holders and lien of Terminal Benefits

 14.5% for Salary A/C holders
 15% for loan against Post-dated cheques and 1 Personal
Guarantee
Tenor: 12, 24 or 36 months

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Eligibility:
Age: Between 25 to 52 years
Job experience: Minimum 4 years of which at least 1 year with current

employer.
Income: Minimum Tk. 15,000/-per month for private

organization and Tk. 10,000/- for government employees
Auto Loan:
EBL Auto Loan is here to help you purchase your dream car. It's easy and
flexible repayment schedule erase your worries about the burden of a loan.
Our Auto loan Scheme will allow you to avail credit up to 75% of the car
value. You need to be a Bangladeshi national between the age of 25-55,
working in a reputed multinational/ local firm or involved in a reputed
business.
The maximum repayment period for EBL Auto Loan is 4 years. You can
choose 12, 24, 36 or 48 equated monthly installments (EMI) to repay the
loan.

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Services of Consumer Banking:
 Locker Services
 EBL 5 to 9
 Online Banking
 EBL Visa Electron Card
 Utility Services Bill Collection
 Tuition Fees Collection
 Student File
Locker services:
EBL offers three different types of lockers - small, medium and large. They
can be used for the safe keeping of personal belongings (jewelry, documents
etc.). However nothing illegal can be kept in the locker. The locker holder has
to have an account with EBL to get this service. The yearly rate of the lockers
range from the smallest one being TK 1000, the medium one being Tk 1500
and the Large one being TK 2500. This service is available at the following
branches of EBL.
1. Dhanmondi
2. Uttara
3. Shantinagar
4. Mirpur
5. Gulshan
6. Sonargaon Road
7. O.R.Nizam Road
8. Rajshahi
9. Bogra
10. Chouhatta (Sylhet)
EBL 5 to 9:
This is a service that gives the customer the option to deposit money in the
bank beyond banking hours. All the customer has to do is become a member
of the EBL 5 to 9 services by providing a nominal yearly fee. The customer
being a member will be given a bag and a lock.
He/she can put in money in the bag lock it and deposit the same in the EBL 5
to 9 safe deposit box kept in the branch any time during 24 hours time. The
bag upon deposit in the 5 to 9 deposit box will directly go to the bank's
secured vault. His/her deposit will be credited to the respective account the
following day and the deposit bag will be returned to the customer for further
deposits in the future.
This is a convenient 24 hour deposit service especially for small traders and
shop owners who feels unsafe keeping their money in the shop or carry it
home in the night.

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Online Banking:
Flexcube@ is the Internet banking solution that delivers the Corporate,

Consumer and Investment Banking products to bank's customers over the
Net. Our Internet Banking module is a secure, robust and extensible web
banking solution. It is anchored on a reusable component framework that
complies with industry standards. Conceived specifically to exploit the
potential of the web, our new banking platform delivers a modular solution
addressing Consumer, Corporate and Investment Banking. Customers will be
able to transfer funds, inquire balance, request for cheque book, pay utility
bills on-line etc.
Visa Electron online debit card:
First time ever in Bangladesh!
EBL Introduces the Visa Electron online debit card:
Unique Features:
1. With EBL Visa Electron you can now draw cash from the Q-cash ATM
network, 24 hours a day through out the year. No need to carry
excess cash in your wallet. Your card is electronically linked to your
EBL account.
2. EBL Visa Electron is also accepted at Visa merchants with Electronic
P.O.S Visa Symbol, where you can pay for merchandise and services.
3. Acceptance - Hassle free acceptance at network of Q-Cash ATMs
currently 10 and to be expanded up to 50 by July 2004 and
approximately 1000 POS deployed in major cities.
4. Photo card - Displays your photo & signature on front of your card for
enhanced security.
What else you can do:
1. Account balance checking from ATMs

2. PIN change facility
3. Cheque book request
4. Mini statement inquiry
5. Statement request
Additional EBL services:

1. Avail EBL Internet Banking facility
2. Card for joint account holders as well
3. Real time online transaction.
4. Services of well-trained relationship managers at any of our 22 real-
time branches.
ATM Location Details:

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1. EBL, Principal Branch, 10 Dilkusha Dhaka

2. EBL, Mirpur Branch, Plot - 14, Main Road -3, Block-A, Sec -11, Mirpur
Dhaka
3. EBL, Uttara Branch, Plot- 1A, Road-4, Sector - 4, Uttara Model Town,
Dhaka
Eligibility:
Any EBL account holder can be issued the EBL Visa Electron. If you are an
EBL account holder, just drop by at any of our sales and service centers, fill
up an Application Form. We will courier your card within 7 working days. It is
that easy!
Your EBL Visa Electron is the first of its kind in Bangladesh, exactly what you
wanted. Become a proud member of EBL card family and discover the vast
array of added conveniences- a new dimension in banking!
Utility Services Bill Collection:
1. WASA ( only Dhaka)

2. DESA ( Rajshahi, Bogra, Dhaka-Mirpur Branch)
3. PDB ( Chittagong, Rajshahi Jessore)
4. AKTEL
Internet Service Provider Bill
1. Proshikanet
2. Bdcom Online Ltd
3. ConnectBd Ltd
4. Access Telecom (BD) Ltd
5. In-touch Communication Ltd
6. Dhaka Broad Band Network (DBN)
7. Spark System Ltd
8. Agni Systems Ltd
9. Touch Tone Bd Ltd
Tuition Fees Collection:
 Scholastica ( Pvt) Ltd

 Scholastica Transport Service Ltd
 South Breeze
 Mirpur Bangla School
 Aga Khan Education Service System
 Shahid Smrity School
Student file:

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EBL allows students who are going abroad to study to open an account in
order to transfer funds to wherever they are going. We take the step to take
the permission (if necessary) from Bangladesh Bank on behalf of the
customers. For this we need all the documents of the student's previous
completed education and his/her (s) acceptance letter from which ever
University he/she is going.

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Corporate Banking:
Corporate Banking is an integrated specialized area of the Bank which addresses the
diverse financial needs of Corporate Customers.
Local and Foreign Business Houses (Public and Private Limited Companies), NGO's ,
Associations , Not for profit Organizations , Sole Proprietorship Concerns and Various
Government Bodies/Corporations etc are considered to be our Corporate Customers .
Corporate Banking has been established in EBL to cope with the banks strategy to
transform into a Business Matrix from the existing Geographical Matrix Modules.
Corporate Banking Relationship Teams based in Dhaka and Chittagong are available to
understand your business and its requirements. They are specialists in developing high
quality financial solutions and to assist you in achieving your business objective. Services
provided by Corporate Banking are as follows:
 Structuring of Facilities for Corporate Customers.

 Develops understanding of customer businesses and advises Financial Solutions
 Advisory Services/ Financial Consultancy
 Arrange Loan Syndications
 Developing Relationship between the Clients and the Bank
 Processing credit facility requirements and arranging approvals for credit
facilities.
 Handles pricing issues and Wallet Sizing Exercises to maximizes the earnings of
the Bank as well as of the Client
 Coordinating service delivery of all EBL distribution channels viz.
 Sales and Service centers, Trade Services, Treasury, Credit issues as required for
the customer.
 Provides a one stop service for Credit facilities.
 Ensures Corporate customers' complaints and Service issues are promptly
addressed.
 Addresses Credit related issues.
 Coordinates activities of support unit Credit Administration unit which prepares
security documentation, security registration, and CIB related issues.
 Coordinates activities of operating departments in obtaining Central Bank
approvals where necessary.

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Services of Corporate Banking:
a. Structuring of Facilities for Corporate customers.

b. Providing Financial Solutions
c. Advisory Services
d. Arrange Loan Syndications
e. Developing Relationship between the Clients and the Bank
f. Processing credit and other approvals for credit and other facilities. Provides an
one stop service for Credit facilities.
g. Handles pricing issues and Wallet Sizing Exercises to maximizes the earnings
of the Bank as well as of the Client
h. Coordinating service delivery of all EBL distribution channels (Sales and
Service
centers, Trade Services, Treasury, Credit issues as required for the customer.
i. Ensures corporate customer's complaints are addressed.
j. Relationship Teams of EBL are available to serve you.
Corporate Banking Relationship teams structure:
This comprises of Teams of Relationship Managers.
 There are 5 Asset Teams and 1 Cash Management Team in Dhaka

 There are 3 Asset Teams in Chittagong
 Both Dhaka and Chittagong Area have 1 Small Business Unit each to
handle requirements of small businesses (facilities below BDT 1.5 crores).
 Corporate Banking Relationship Managers in each of the Outstation
Branches for ensuring smooth and uninterrupted services to the Corporate
Clients in Rajshahi , Jessore , Bogra , Khulna, Sylhet (Laldighir Par ,
Moulovibazar , Chouhatta ) .
 The relation teams are composed of people specialized in dealing with the
needs of business entities and coordinating EBL's service delivery across
the EBL network.
Relationship Partners:
Corporate Banking believes in long term relationship. Corporate Banking is

managing a well diversified portfolio and the priority is in the following
sectors:-
 Ceramics  Tea
 Construction.  Jute
 Garments  Building materials

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 Textiles finance
 Service  Trades
 Pharmaceuticals.  Computer &
 Health care Electronics
 Food & Beverages  Transportation
 Poultry &  Ship breaking
Hatchery  Agro based
 Steel Industry  Batteries and
 Power car oil and related
other  industries
infrastructure  Commodities
projects import
 Mobile Telecom  Steel products
Companies  Chemical, plastic
 Media & plastic
 Cement  products
 Soap &  Edible oil
detergents,cosme  Clinics, Hospitals
tics and NGO's
 Leather  Educational
 Paper and related Institutions
products  Financial
Institutions
 Shipping Airlines  Shrimp Export
transport

II. Corporate Lending:
You will find an excellence inventory of products to match your business requirements.
Product development is a continuous endeavor of the Relationship Teams to optimize
the utility of Corporate Clients. The Product Inventory Shelve contains the following
products from which you can choose any one or any combination that fits best with the
requirements of your company. We tailor product to the requirements of each customers
as required.

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Product of Corporate Banking:
SOD Secured Overdraft

OD Overdraft
CC (HYPO) Cash Credit against Hypothecation
CC (PLEDGE) Cash Credit against Pledge
PC Packing Credit against Export L/C & Export Order
Demand Loan(Hypo) Demand Loan against Hypothecation
Demand Loan (Pledge) Demand Loan against Pledge
Time Loan Time Loan against Other Security/Collateral/Support
Term Loan Term Loan
SLC Sight Letter of Credit
ULC Usance Letter of Credit
BBLC Back to Back Letter of Credit
Import Loan (Hypo) Import Loan against Hypothecation
Import Loan (Pledge) Import Loan against Imported Merchandise Pledged
LTR Loan Against Trust Receipt
Acceptance Acceptance against ULC
LBPD Local Bill Purchased Documentary
FBPD Foreign Bill Purchased Documentary
LAFB (CLEAN) Loan Against Foreign Bill Clean
LAFBD Loan Against Foreign Bill Documentary
LG Letter of Guarantee -BB / PG / APG / RB / Pay. Gtee
BCP (Foreign) Bankers Cheque Purchase (Foreign)
BCP (Local) Bankers Cheque Purchase (Local)
Fwd FX Forward Contract

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SME Banking:
Small and Medium Enterprises (SME) in Bangladesh contributed 25% of gross domestic
product (GDP) and 80% of the industrial jobs of the country in 2004. According to ADB,
the country's estimated 6 million SMEs and micro enterprises firms of less than 100
employees have a significant role in generating growth and jobs. This is a sector that
has its own distinct needs and requires specialized focus. Eastern Bank Ltd. (EBL) has
launched SME Banking in early 2005 with this view in mind.
" Provide SMEs with easy access to financing.

" Deliver products that ensure superior returns to our customers.
" Orient customers with industry trends, regulatory issues etc, for their success.
" Value long term relationship banking.
In short, we want to be the partner in your success.
Customer Qualification:
" Your business can fall within any of these categories:

(i) Manufacturing (ii) Trading (iii) Service
" You should have at least 2 years of business experience (with proven track record).
" The most important securities we look at are:
(i) Business performance (ii) Industry reputation (iii) Experience
Our existing and prospective customers generally are in the following businesses:
(i) Manufacturing:
" Packaging
" Flour Mills
" Suppliers to MNC / LLC
" Printing & publishing
" Garments accessories
" Furniture Pharmaceuticals

(ii) Trading:
" Distributors of Multinational Company (MNC) / Large

local Corporate (LLC), Supplier of MNC / LLC
" Importer of food & grain, dyes & chemicals, milk
powder, motor parts, bicycle parts, motor car, electrical
and electronic goods, hardware & machinery, poultry
feed, garments accessories, construction materials, water
pump and generator, cotton yarn, seed distributor, steel
sheet, jewellery, edible oil and crude oil
" Retailer of readymade garments and boutiques

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" Restaurant & fast food

" Super market
" Stationary items
" Furniture & wood seller
" Drug & medicine seller
(iii) Services:
" Educational institute

" Travel agency
" Advertisement firm
" Shipping agents
" Transport / container mover
" Clearing & forwarding agent
" Gas stations
" Real estate companies
" Contractors
" Non profit organization
" Clubs

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The Case for the SMEs
The SMEs worldwide are recognized as engines of economic growth. The

commonly perceived merits often emphasized for their promotion especially in
the developing countries like Bangladesh include their relatively high labor
intensity, dependence on indigenous skills and technology, contributions to
entrepreneurship development and innovativeness and growth of industrial
linkages.
The case for fostering SME growth in Bangladesh is irrefutable as these

industries offer bright prospects for creating large-scale employment and income
earning opportunities at relatively low cost for the un-and unemployed especially
in the rural areas strengthening the efforts towards achieving high and sustained
economic growth which are critically important prerequisites for triggering an exit
from endemic poverty and socio-economic deprivation.
These promotional arguments for the SMEs, while universally emphasized are
often put forward by their ardent advocates in a small versus large context and
thus arouse serious debates concerning their economic viability. Much of such
controversies may, however breakdown if the intrinsic virtues specific to SMEs
and unavailable to large-scale industries are correctly identified and carefully
exploited.
A combined interaction of the forces of product-mix, locational factors,

technological advantages and market advantages create opportunities for SMEs
to grow and prosper at all levels of development which are often ignored by the
traditional approach to their economic strengths and development potentials.
The growing economic significance of the SMEs as sources of new business

creation and employment generation in the developed, OECD countries especially
since 1970s is now widely recognized in an increasingly growing volume of
literature (OECD1997).
The recent structural shifts in industrial production from the Florist approach of
mass production to more flexible and adaptable production regime in response to
constantly changing market opportunities have led to a notable resurgence of
these industries in the West. The re-emergence of the SMEs in the developed
world makes economic case for fostering development of these industries
stronger than ever before.

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Place of SMEs in the National Economy of Bangladesh
Any precise quantitative estimate of the importance of SMEs in Bangladesh economy is

precluded by non-availability of comprehensive statistical information
about these industries at the national level.
The latest BSCIC estimates suggest that there are currently 55,916 small industries and
511,612 cottage industries excluding handlooms. Including handlooms, the number of
cottage units shoots upto 600,000 units indicating numerical superabundance of the
SCIs in Bangladesh.
Quoting informal Planning Commission estimates, the SMDF puts the number of medium
enterprises (undefined) to be around 20,000 and that of SCIs to be between 100,000 to
150,000.
This wide variation in the BSCIC and Planning Commission estimates of the numerical,
size of the SMEs might be due to at least two reasons: (a) different set of definitions of
the SMEs and (b) different coverage of SME families.
This strongly suggests the need for adopting and using an uniform set of definitions for
SMEs by all Government agencies to help formulation of pro-active SME promotion
policies. Whatever the correct magnitude, the SMEs are undoubtedly quite predominant
in the industrial structure of Bangladesh comprising over 90% of all industrial units. This
numerical predominance of the SMEs in Bangladesh’s industrial sector becomes visible in
all available sources of statistics on them (Ahmed, M.U 2001).
Together, the various categories of SMEs are reported to contribute between 80 to 85

per cent of industrial employment and 23 per cent of total civilian employment (SEDF,
2003)2. However, serious controversies surround their relative contribution to
Bangladesh’s industrial output due to paucity of reliable information and different
methods used to estimate the magnitude. The most commonly quoted figure by
different sources (ADB, World Bank, Planning Commission and BIDS) relating to value
added contributions of the SMEs is seen to vary between 45 to 50 per cent of the total
manufacturing value added. While the SMEs are characteristically highly diverse and
heterogeneous, their traditional dominance is in a few industrial sub-sectors such as
food, textiles and light engineering and wood, care and bamboo products.
According to SEDF sources quoted from ADB (2003), food and textile units including
garments account for over 60% of the registered SMEs. However, as identified by
various recent studies, (Ahme, M.U. 2001, ADB 2001, US-AID 2001) the SMEs have
undergone significant structural changes in terms of product composition, degree of
capitalization and market perpetration in order to adjust to changes in technology,
market demand and market access brought by globalization and market liberalization.

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The importance of the SME sector
• Employment of medium to low skilled workers.

• Increased cash flow in Rural/Semi-Urban Areas.
• Reduction of Poverty.
• Reduce Urban Migration.
• Development/Formation of Linkages .
• Enhance living standards and consumption.
• Economic Growth (GDP growth).
• Creation of a semi-urban entrepreneur class.
Current Scenario of SME financing in Bangladesh
• Commercial Banks and Financial Institutions have incorporated SME

banking.
• This done by only re-designing and scaling down their current financial
products for the SME customer.
• Therefore expected value addition not created in SME financing, since it
continues to be traditional financing.
• Micro finance institutions (MFI’s) haven’t yet entered the Small business
market.
Employment
Economic Reduce
Growth Poverty
SME
Creation of Enhance
Entrepreneur Living
s Standards
Formation of
Linkages

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SME Banking of EBL:
Small and Medium Enterprises (SME) in Bangladesh contributed 25% of gross

domestic product (GDP) and 80% of the industrial jobs of the country in 2004.
According to ADB, the country's estimated 6 million SMEs and micro enterprises
firms of less than 100 employees have a significant role in generating growth
and jobs. This is a sector that has its own distinct needs and requires specialized
focus. Eastern Bank Ltd. (EBL) has launched SME Banking in early 2005 with this
view in mind.
 Provide SMEs with easy access to financing.

 Deliver products that ensure superior returns to our customers.
 Orient customers with industry trends, regulatory issues etc, for their
success.
 Value long term relationship banking.
Customer Qualification:
Business can fall within any of these categories:
 Manufacturing
 Trading
 Service
One should have at least 2 years of business experience (with proven track

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record).
The most important securities we look at are:

 Business performance
 Industry reputation
 Experience
Products and Services (Mid Segments):
Financing Amount:
Facilities range upto Tk. 5 crore for one or multiple product(s); products are
suited for all types of business needs in every stage of your business, which falls
in cash management, lending, and trade services categories. The products are:
Cash Management:
Current Account Transactional account with cheque book and debit card
facilities, along with online and internet banking.
Short Term Interest bearing account that can be linked to the current
Deposit (STD) account to combine the facilities of both accounts.
Account
Fixed Deposit High interest bearing time deposit that has to be kept with
(FD) the bank for a time period to earn the interest.
Lending:
Overdraft/Cash Fully secured line of credit with a tenor of 12 months and can
Credit be renewed on maturity.
Demand Loan Loan for financing inventory procured locally or financing
duty/tax against hypothecation of inventory and book debts.
Time Loan (Work Loan for short term need against work order from reliable
Order Financing) benefactor.
Term Loan Long term loan to finance fixed asset against hypothecation
of the fixed asset.

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Trade Services:
Letter of Credit Financing of import of goods against title of the documents

or sales.
Import Loan Financing of imported merchandise against hypothecation or
pledge of inventory or book debts.
Guarantee Bid bond, performance guarantee, and payment guarantee
for contractual obligation.
Local Bill Purchase or discount of local usance L/C with upfront
Purchase realization of interest.
Foreign Bill Cash against documents or negotiation of export document
Purchase against sight or usance export L/C.
Products (Small Segments):
EBL ASA
 Any business purpose loan from Tk. 200,000.00 to Tk.

1,000,000.00.
 To be repaid within maximum 24 months (next loan is payable
within 60 months).
 No requirement for collateral security.
 Loan repayable in equal monthly installment.
EBL PUJI
 Any business purpose loan from Tk. 1,000,000.00 to Tk.

5,000,000.00.

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 To be repaid within maximum 36 months (next loan is payable

within 60 months).
 Collateral security required along with charge on business assets.
EBL UDDOG

5,000,000.00.
 Without land/building mortgage.
 To be repaid within 60 months.
 50% of the loan amount in the form of fixed deposit is needed.
EBL AGRIM

950,000.00.
 No collateral security required.
 Lone tenure 1 month to 6 months.
 Single shot payment at maturity but interest will be realized on
monthly basis
 Partial payment and early payment allowed no additional fee
required.

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Credit Rating of Eastern Bank Limited
RATIONALE
CRISL reaffirms “A” rating to Eastern Bank Limited in long term and St-3 rating
for short term. It has been done on the basis of good fundamentals such as
satisfactory capital adequacy, good asset quality, diversified product lines,
significant non funded business, experienced top management etc. However the
above factors are moderated to some extent by limited market share,
dependency on term deposit, high loan to deposit ratio etc. Financial Institutions
rated in this category are adjudged to offer adequate safety for timely
repayment of financial obligations. This level of rating indicates a corporate
entity with an adequate credit profile. Risk factors are more variable and greater
in periods of economic stress than those rated in the higher categories. The
short term rating indicates good certainty of timely payment. Liquidity factors
and company fundamentals are sound. Although ongoing funding needs may
enlarge total financing requirements, access to capital markets is good. Risk
factors are small.
PREVIOUS RATING
CRISL earlier assigned “A” rating in the long term and ST -3 rating in the short
term to Eastern Bank Limited on the basis of its strong fundamentals such as
satisfactory capital base, strong non funded income base, diversified product
line, satisfactory asset quality and prudent investment policy. However, the
above ratings are constrained to some extent by the limited market share,
marginal liquidity position, dependency on term deposits etc. These ratings were
assigned on the basis of financials up to 30th June 2006. Financial Institutions
rated in this category are adjudged to offer adequate safety for timely
repayment of financial obligations. This level of rating indicates a corporate
entity with an adequate credit profile. The short-term rating also indicated the
high certainty with regard to the obligor’s capacity to meet its financial
commitments.

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Credit Rating of EBL

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EBL started its journey from a meager information technology platform. The branches
were operating in a standalone/decentralized environment using a local software where
limitations were in abundance. It was limited from the delivery channels perspective for
providing the customers with maximum benefits in terms of banking products and
services. The most private banks in Bangladesh generally have been less competitive
with their MNC bank counter parts. The sense of customer support and service at these
private banks, literally, were not up to the par with what the customers came to expect
from these MNC banks. So, for obvious reasons privates started loosing businesses to
these MNC banks.
Eastern Bank Limited Provides Online banking services, E-commerce Banking, EBPP
Services, E-Banking Facility, E commerce Transaction, E-commerce Banking could be
provided effectively. All the branches of Eastern Bank Ltd will come under one online
Banking network so that clients will enjoy the Online banking services in Bangladesh.
Eastern bank Ltd will help to enjoy Online banking service in Bangladesh. Electronic
Banking service in Bangladesh is provides a new step of Electronic Banking in
Bangladesh. Eastern bank ltd also helps for real time banking in Bangladesh.
EBL management consisting of dynamic bankers from foreign banks working

environment could assess the benefits out of Information Technology [IT] in utilizing it
to the maximum through their experience. Their guideline and streamlined decision
making has played a pivotal role in the implementation process of Flexcube software in
the branches.
EBL is the pioneer Bank in laying foundation to the world class banking software in
Bangladesh. No other private Banks in Bangladesh could implement foreign banking
software with success in the past.
The concerned IT resources worked relentlessly over the months played a significant
role behind the successful implementation of Flexcube banking software in EBL
branches.
Essentially, EBL was not in a well connected situation. Data Communication was limited
to secluded offices in a very limited fashion. EBL now is a different scenario. EBL HO is
now connected with the branches all around Bangladesh. Here is a breakdown of what
the data communication infrastructure looks like today:
• High Speed DDN and Radio Link connectivity between Branches and the Head Office.
• Local Area Network (LAN) - providing data network connectivity at the Head Office and
the Branches.
• Metropolitan Area Network (MAN) - connecting the DHK branches with HO, CTG
branches with Agrabad and SYL branches with Chouhatta.
• Wide Area Network (WAN) - enabling the data network circle between Head Office and
the Branches.
• Solid foundation over data and network security implementation.

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EBL wanted to stand up in the crowd. For moving out of the ramshackle, EBL
management under the dynamic leadership of the honorable Directors of the Board
switched over to a centralized platform using a world renowned banking software which
was the #1 most popular software in the world for the year 2003. The result has been
incredible. We list a few of the benefits of centralization here.
At a glance - Benefits from Changes
Standalone systems = > Centralized system

Branch Banking = > Anywhere Banking
Anywhere Banking = > EOD at Data Centre
Telegraphic Transfers = > Online Inter-branch transfer
Hold accounts = > Online Inter-branch transfer
Produce MIS at Branch = > Centralized MIS
Poor ‘Control’ reports = > Improved ‘Control’ reports
Audit needs branch visit = > MIS available at Head Office
Information on paper = > Information in CIF
On Card Signature/Pix = > Digital Signature/Pix
No Funds Management = > Automatic Sweep-in/Out
EBL Banking Benefits:
Flexcube banking software automated in all branches of EBL has the adaptability for
incorporating the delivery channels like, Internet Banking, Tele-Banking, ATM/POS,
Home Banking, Wireless Access Protocol, Call Centre are all superb services which a
customer can avail in due course.
EBL’s repertoire of hardware is highly sophisticated as no other banks in Bangladesh has

availed this in recent times. The combination of hardware will help consolidate the
backbone for the plethora of services provided to the customers by the Bank for the
years to come. Moreover, EBL, country wise bade farewell to the lackluster range of
hardware which were in use over the years.
 Anywhere 24 hours X 7 days banking

 Internet banking, Tele banking and ATM/POS
 One Stop Shop for all your banking need
 Significantly reduced time in banking transactions
 Sophisticated Customer Information at the fingertips and can be provided
anytime
 Online Inter-branch Transfer
 Any Branch Pay Order System
 Digital Signature/Photo image while transacting
 Display Customers Balance, Transactions, Statements online
 Automatic Sweep in & out
 Locker Service Availability

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 EBL 5 to 9 Extended Service

 Bill payment
o Utility Services Bill
o Tuition Fees
o Mobile Phone Bills
 Versatile Products availability
 Fast Cash
 Fast Loan
 Auto Loan
 Consumer Loans
 High Performance Account
 Savings Insurance Account
 Monthly Income Plan
 Monthly Deposit Plan
EBL Internet banking application addresses the needs of small, individual and corporate
account holders of the bank. This application provides a comprehensive range of
banking services that enable the customer to meet most of their banking requirements
over the Net.

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BIBLIOGRAPHY
1. “Financial Management” by P K Jain
2. “Financial Management” by Van Horn
3. “Basics in Report Writing” by Leisikar
4. www.ebl.com.bd
5. Annual Report- Eastern Bank Limited, 2004
8. Hemple & Johansson, “Bank Management”, fifth edition

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Internship Report

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 1

Md. Rezwan Kabir

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 2

Mrs. Rubiat Begum

Subject: Submission of Internship Report on “Diversified Portfolio & SME

This is my pleasure to present my Internship Report on “Diversified Portfolio &

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 3

And then it is important to give credit to my supervisors Mrs. Rubiat Begum,

The management of Sonargaon road SME had been extremely helpful in

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 4

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 5

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 6

This is an internship report based on the internship program took place in

I start my internship to the 16 th of August with an Office order issued by the HR

I have equally faced co-

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 7

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 8

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 9

While working in here found each and every employee is friendly to me to

1.1 Origin of the Report:

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 10

1.2 Statement of the report:

Small and Medium Enterprises (SME) in Bangladesh contributed 25% of gross

 SMEs with easy access to financing.

1.3 Rational of the study:

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 11

1.4 Objectives of the study:

The objectives of this research paper are as below:

To acquire practical knowledge about the overall activities of SME

To cover a comprehensive analysis of different Segments of EBL.

To study how EBL has maintained growth in its banking business by

To highlight the problems and necessary recommendations to overcome

To know the performance of EBL in every aspects.

To understand the banking environment of private commercial bank in

By applying the theoretical knowledge in the bank to recommend on banks

1.5 Scope of the study:

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 12

In this study, exploratory research was undertaken to gain insights and

1.6.1 Sources and methods of data collection:

(A) Official record.

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 13

(A) Annual report of EBL.

1.8 Limitations of the study:

One of the crucial limitations is time constraint. As I posted in the Sonargaon

SME banking is very busy as well as confidential regarding to some

Unavailability of sufficient written documents as required making a

Lack of in depth understanding of banking activities that prevents me from

Lack of enough information on head office since I am working in a branch.

Lack of required data.

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 14

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 15

2. AN OVERVIEW OF EASTERN BANK LIMITED (EBL)

To become the Bank of Choice by transforming the way we do

 We will constantly challenge our systems, procedures and

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 16

We passionately drive customer delight.

We share the business plan

We care for each other

We know our road map

We say what we believe in

Responsible corporate Citizen

We are tax-abiding citizen