Full Report PDF

Letter of Transmittal
19th December, 2019

To
Prof. Dr. Khair Jahan Sogra
Professor& Dean
College of Business Administration
IUBAT-International University of Business Agriculture and Technology
Subject: Application for submission of my practicum report.
Dear Sir,
This is to inform you that, it is my great pleasure that today I am submitting my practicum report
on “An analysis of loan products, procedures and its performance at Dhaka Bank Ltd". The
main goal of preparing this practicum report is to gain a depth knowledge about the loan products,
procedure and loan performance of Dhaka Bank Ltd. Though I faced some difficulties to collect
information in order to complete my report, I tried level best to do it in an acceptable way to
achieve my aim. Now I need the permission of you to present it.
So, I am requesting you to give me the permission to present my full practicum report and pave
the way smoother to my academic career and oblige thereby.
Yours Sincerely,
…………………
Rakib Ahammad
ID # 16102115
Program: BBA
i
Acknowledgement
First, I would like to show gratitude to the Almighty Allah.

My special gratitude to our Late Prof. Dr. M Alimullah Miyan, who was the pioneer of
nongovernment universities in Bangladesh; who had broken the long-standing monopoly in higher
education through facilitating the establishment of a non-government university in the country.
Thus, he tried to concrete way for knowledge generation and dissemination enlargement access to
higher education to more border strata of the society. And I would like to express my heartiest
gratitude to our Vice-Chancellor Prof. Dr. Abdur Rab. Again, I would like to express my heartiest
gratitude to our Dean Prof. Dr. Khair Jahan Sogra and Coordinator Abdullah Al Yousuf Khan.
Next, I would like to convey my gratitude to Dhaka Bank Ltd, Sonargaon Janapath Branch where
I have completed my internship program as required as a course curriculum to prepare this report.
I have acquired experience from Dhaka Bank Ltd. at Sonargaon Janapath Branch that truly
amplified my level of competency during my working period. It would not have been possible for
me to complete this internship successfully without the help of Shams Rumana Rimi (FVP,
Manager in Charge) and Ms. Sumaiya Tabassum (Senior officer) Then, I would like to say thanks
to Azizunnahar Happy (Officer, General banking department) and Ms. Sharmin Akter (Principle
Officer, Cash in Charge). Special Thanks to Ms. Sumaiya Tabassum for her helping hand and
guideline, which give me the strength to prepare this report. I want to give thanks to the entire
employee of Dhaka Bank Ltd, Sonargaon Janapath Branch.
After that, I would like to express my gratitude to Saima Rahman, faculty, College of Business
Administration who guided me to bring the real outcome into the report, without them it was not
possible to prepare this report such a good way.
All I have gratitude and respect from the bottom of my heart for them.
ii
Student’s Declaration
I am Rakib Ahammad, student of Bachelor of Business Administration (BBA), under the College
of Business Administration (CBA) at IUBAT—International University of Business Agriculture
and Technology declaring that this practicum report on the topic of “An analysis of loan products,
procedures and its performance at Dhaka Bank Ltd" have only been prepared for the
fulfillment of the course of BUS490 Practicum as the partial requirement of the Bachelor of
Business Administration (BBA).
I hereby declare that this report has been solely prepared by me under my supervisor guideline and
to the best of my knowledge. It contains no materials previously published or written by any other
person which have been accepted for the degree or diploma at IUBAT or any other educational
institution, except the quotations and reference which have been duly acknowledged. It has not
been prepared for any another purpose, reward, or presentation.
………………..
Rakib Ahammad
ID # 16102115
Program: BBA
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Supervisor’s Declaration
This is to certify that Rakib Ahammad, ID: 16102115 program BBA, College of Business
Administration, IUBAT has completed his internship from Dhaka Bank Ltd. (Sonargaon Janapath
Branch) under my guidance and has successfully prepared this internship report on “An analysis
of loan products, procedures and its performance at Dhaka Bank Ltd" in Fall 2019.
He has always maintained communication with me and has taken necessary advice from me to
prepare this report.
Finally, I wish him all the best in his future endeavors.
Kind Regards,
Saima Rahman
Senior Lecturer
College of Business Administration (CBA)
International University of Business Agriculture and Technology (IUBAT)
4 Embankment Drive Road, Sector-10, Uttara, Dhaka-1230, Bangladesh.
iv
Executive Summary
The report is originated in result of my internship program which I have done as a requirement of
BBA program .This report is completed based on my three months internship in Dhaka Bank
Limited. This is an orientation report that contains the real life day to day working experience of
different tasks in Dhaka Bank Limited, Sonargaon janapath Branch.
The objective of this study is to analyze the loan product, procedure of DBL, financial performance
regarding loan etc. To prepare this report both primary and secondary sources of data have been
used. Apart from this a questionnaire has been made and did a survey on 10 employee of DBL.
The first section of this report consists of an introductory part which has been developed for the
proper execution of the entire report. Second part has explained the Organization review. Third
part has the topic part of the report and fourth part explained the working experience of my
internship period at different division of DBL. The remaining part consisted of analysis, findings,
recommendations and conclusion.
DBL is one of the leading private banks in Bangladesh. To serve the nation Dhaka bank performs
some activities for their clients like general banking, loan and advance, capital market operation
etc. Bank collects deposit from public and provides it to other business or individual as loan. Bank
pays interest to deposit holder and take interest from borrowers. Dhaka bank measure all risk
components before sanctioning a loan. When all the formalities completed then respective officer
disburse the loan. After disburse the loan it is duty of bank to recover the disbursed loan. This
report is based on actual information and working procedure practiced in DBL. The overall credit
management of DBL has analyzed to give a clean idea about the policy of DBL and
implementation of that policy by various mechanism and process.
After completion of analysis, it is found that DBL has the increasing nonperforming loan for last
few years and it`s affecting the overall profitability of the bank, which is not a good sign. Finally
DBL has some issue to fix and get back its corporate reputation and image.
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Table of Contents
1.Introduction to the Report.........................................................................................................2
1.1. Research Aims ..............................................................................................................3
1.2. Broad Objective ............................................................................................................3
1.3. Specific Objective .........................................................................................................3
1.4. Scope of the Study ........................................................................................................3
1.5. Limitations of the study.................................................................................................3
2.1 Background of Dhaka Bank Limited: ....................................................................................6
2.2 Corporate Information of Dhaka Bank Limited:.....................................................................7
2.2.1 Operational Organogram .................................................................................................8
2.3 Corporate Governance: ..........................................................................................................9
2.4 Mission and Vision: ............................................................................................................ 10
Mission .................................................................................................................................. 10
Vision .................................................................................................................................... 10
Values of DBL ....................................................................................................................... 10
2.5 Product & Service offered: .................................................................................................. 11
2.6 Porters Five Forces on Dhaka Bank Ltd:.............................................................................. 12
2.7 SOWT Analysis of Dhaka Bank Ltd. ................................................................................... 15
2.8 IFAS of Dhaka Bank Ltd. .................................................................................................... 17
2.9 EFAS of Dhaka Bank Ltd. ................................................................................................... 18
2.10 Graphical analysis of financial position ............................................................................. 19
2.10.1 Net Profit after Tax ..................................................................................................... 19
2.10.2 Total Assets................................................................................................................. 20
2.10.3 Total Investment ......................................................................................................... 21
2.11 Ratio Analysis ................................................................................................................... 22
2.11.1 The return on assets (ROA) ......................................................................................... 22
2.11.2 Return on equity (ROE) ............................................................................................... 23
2.11.3 Earnings per share ....................................................................................................... 24
2.11.4 Return on Investment: ................................................................................................. 25
2.11.5 Cash to Deposit Ratio .................................................................................................. 26
3.1 Credit & Loan Management of DBL ................................................................................... 28
3.2 Loan Policy of DBL ............................................................................................................ 28
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3.3 Functions of Credit Division................................................................................................ 28
3.4 Different types of loan: ........................................................................................................ 29
3.4.1 RETAIL ........................................................................................................................ 29
3.4.2 CORPORATE ............................................................................................................... 31
3.5 Operational Guidelines for Different Credit Facilities .......................................................... 32
3.5.1 RETAIL LOAN ............................................................................................................ 32
Secured Overdraft (FO-FDR, DPS)..................................................................................... 32
Personal Loan ..................................................................................................................... 33
Car Loan............................................................................................................................. 34
Home Loan ......................................................................................................................... 35
3.6 Overall Procedure for Sanctioning Loan: ............................................................................. 36
3.7 Loan Performance of DBL For last Five Years .................................................................... 36
3.8 Corporate Governance Disclosure of Dhaka Bank Ltd ......................................................... 40
4.1 Internship Experience: ......................................................................................................... 42
4.2 Work Performed by Me: ...................................................................................................... 42
4.3 Primary Learning ................................................................................................................ 42
4.4 Secondary Learning ............................................................................................................. 45
Observation ............................................................................................................................... 45
5.1 Problem Statement .............................................................................................................. 47
5.2 Background of the problem ................................................................................................. 47
5.3 Project Timeline .................................................................................................................. 47
5.4 Budget Information ............................................................................................................. 48
5.5 Research Methodology ........................................................................................................ 49
5.5.1 Research Philosophy: .................................................................................................... 49
5.5.2 Research approach: ....................................................................................................... 49
5.5.3 Type of Research: ......................................................................................................... 49
5.5.4 Method of data collection: ............................................................................................. 49
5.5.5 Primary sources of data: ................................................................................................ 49
5.5.6 Secondary sources of data: ............................................................................................ 49
5.5.7 Population and Sampling Methods: ............................................................................... 49
Population: ......................................................................................................................... 49
Sample size:........................................................................................................................ 49
Sampling procedure: ........................................................................................................... 50
5.5.6 Research Limitations: .................................................................................................... 50
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5.6 Data Analysis and Interpretation .......................................................................................... 50
5.6.1 Result findings .............................................................................................................. 50
5.6.2 Hypothesis Test: T-Test ................................................................................................ 50
5.6.3 Hypothesis Scale ........................................................................................................... 51
5.6.4 Hypothesis Development and Test ................................................................................ 51
Hypothesis Test (H1): ......................................................................................................... 52
5.7 Research Findings ............................................................................................................... 58
5.8 Recommendations ............................................................................................................... 59
5.9 Conclusion: ......................................................................................................................... 60
5.10 References ......................................................................................................................... 61
5.11 Appendix ........................................................................................................................... 62
viii
List of Graphs and Figures
Topic Page no.
1. Table 1: Corporate Information of DBL 7
2. Table 2: List of BoD 9
3. Table 3: Project timeline 44
4. Table 4: Budget information 45
5. Table 5: Hypothesis scale 48
6. Table 6: Hypothesis testing 49
7. Chart-01: Organizational Hierarchy 8
8. Chart 2: Products & service offered by DBL 11
9. Chart 3: SWOT Analysis of DBL 15
10. Graph 1: Net Profit after tax 19
11. Graph 2: Total Asset 20
12. Graph 3: Total Investment 21
13.Graph 4: ROA 22
14.Graph 5: ROE 23
15. Graph 6: EPS 24
16. Graph 7: ROI 25
17. Graph 8: CDR 26
18.Graph 9: NPL Volume of DBL 35
19.Graph 10: NPL to Total Loan 36
20. Figure 1: Gantt Chart of Project 45
21. Figure 2: Result of H1 Testing 50
ix
List of Abbreviations
Abbreviation Full Form

DBL Dhaka Bank Limited
HRD Human Resource Department
ROA Return on Asset
ROE Return on Equity
ROI Return on Investment
CDR Cash to Deposit Ratio
EPS Earnings Per Share
AVP Assistant Vice President
DPS Deposit Pension Scheme
CIB Credit Information Bureau
NPL Nonperforming Loan
x
Part 1
Introductory Part
1
1. Introduction to the Report
Internship is a process by which a student learns to perform the work basically in the connected
field. This is a way through which a person or a trainee fold skill about the related subject
practically and be able to apply his/her theoretical knowledge in the field of actual life action.
Internship provides a chance for students to share theory with practice and more provide as a
short-term work group for that organization that has right to join in the internship program. As
the classroom discussion alone cannot make a student perfect in handling the factual situation,
therefore it helps the students to get an accustomed with the real life situation through this
program. The internship program fulfils its mission of capable a student for his or her important
professional and executive positions in the public and private sector. This program and final
report will make possible the student to balance theoretical ideas taught in the classrooms and
share this with the real business environment.
Internship Program of IUBAT is a compulsory requirement for the BBA students. This study is
a requirement of the Internship program of BBA program at the IUBAT. This subject is 9 credit
hours course and duration is four months. This report will be prepared for Prof. Dr. Khair Jahan
Sogra, Professor& Dean, college of Business Administration (IUBAT). The main purpose of
internship is to get the student exposed to the job world. Being an intern the main challenge was
to translate the theoretical concepts into real life experience.
The internship program and the study have following purposes:
 To get and organized detail knowledge on the job responsibility.


 To experience the real business world.

 To compare the real scenario with the lessons learned in IUBAT.

 To fulfill the requirement of BBA Program.
I was assigned to the DHAKA BANK LTD, Sonargaon Janapath Branch, Uttara. I`ve completed
my internship there from 1st September to 30th November under Mrs. Sumaiya Tabassum,
Senior Officer (In Charge Credit Operation). I have selected the topic “An analysis of loan
products, procedures and its performance at Dhaka Bank Ltd"
2
1.1. Research Aims
Aim of Research is to know about the whole loan product and procedure system of DBL,
how they disburse loan and finally an analysis on their nonperforming loan. A detailed
study on that and make Considerable recommendation if needed.
The primary objective of the study is fulfilling partial necessities of Bachelor of Business
Administration degree. However, Specific objective are given below.
1.2. Broad Objective

The main objective of the study is to highlight the loan management system of Dhaka bank ltd
and to find out the current scenario of their nonperforming loan.
1.3. Specific Objective

 To understand the lending procedure of Dhaka Bank Limited
 To know the various interest rates for different categories of loan and what kinds of
securities taken against different size of advances.
 To know the terms and conditions of credit management of Dhaka Bank Limited
 To analyze the nonperforming loan of Dhaka Bank Ltd and find the reasons.
1.4. Scope of the Study
DHAKA BANK LTD, Sonargaon Janapath Branch, Uttara, the scope of the study is only
Limited to this branch. This report covers the activities of the DHAKA BANK LTD. In the,
Sonargaon Janapath Branch, that includes the scope of this report is limited to the overall
description of the company, organizational setup, functions, its services, investments, finance
and advances and its financial performance analysis. I collected information for preparing a
report on “An analysis of loan products, procedures and its performance at Dhaka Bank Ltd". I
hope the report will give a clear idea about the various types of loan of Dhaka Bank Ltd and the
scenario of their nonperforming loan.
1.5. Limitations of the study

The report is written mainly on the basis of face to face conversation with the bank clients and
account holders and practical experience of the organization. So, my lack of experience might
have influenced in preparing this report.
3
 Lack of co-operation of respondents.

 It was hard to collect the information relevant to my report, because the people of this
Bank were too busy with their own task that they cannot be able to give me much time.

 Limitation of time of respondents was another barrier.

 As this report is based on primary sources, so there might be some inaccuracy with
those collected information.

 Lack of secondary information.
4
Part 2
Organizational Part
5
2.1 Background of Dhaka Bank Limited:
Bangladesh economy has been experiencing a rapid growth since the 90s. Industrial and
agricultural development, international trade, inflow of expatriate Bangladeshi worker’s
remittance, local and foreign investments in construction, communication, power, food processing
and service enterprises ushered in an era of economic activities. Dhaka Bank Limited (DBL) is the
leading private sector bank in Bangladesh offering full range of Personal, Corporate, International
Trade, Foreign Exchange, Lease Finance and Capital Market Services. The Bank has launched
Online Banking service and being fully equipped with industry standard IT infrastructure, Online
Banking, E-Commerce, Internet Banking (I Bank) and SMS Banking – Dhaka Bank is one of the
fastest growing private banks in Bangladesh. Dhaka Bank Limited is the preferred choice in
banking for friendly and personalized services, cutting edge technology, tailored solutions for
business needs, global reach in trade and commerce and high yield on investments, assuring
Excellence in Banking Services.
The Bank was incorporated as a public limited company under the Companies Act. 1994. The
Bank started its commercial operation on July 05, 1995 with an authorized capital of Tk. 1,000
million and paid up capital of Tk. 100 million.
The Company went for the public issue of shares on 18 November 1999 and its shares are listed
with the Stock Exchange of Bangladesh. Now it has 106 branches all over Bangladesh, an offshore
banking unit at EPZ, Dhaka, 6 SME Service Centers and 6 units of Capital Market Services (CMS).
As envisaged in the Memorandum of Association and as licensed by Bangladesh Bank under the
provisions of the Banking Companies Act 1991, the Company started its banking operation and
entitled to carry out the following types of banking business:
i. All types of commercial banking activities including Money Market operations.
ii. Investment in Merchant Banking activities.
iii. Investment in Company activities.
iv. Financiers, Promoters, Capitalists etc.
v. Financial Intermediary Services.
Two other branches of the bank are run under Islamic Shariah, the modus operandi of which is
substantially different from other non- Islamic branches. The bank is listed with Dhaka Stock
Exchange and Chittagong Stock Exchange as a publicly quoted company for its general class of
shares. Dhaka Bank is also the member of Central Depository of Bangladesh Limited (CDBL).
6
2.2 Corporate Information of Dhaka Bank Limited:
Name of Organization Dhaka Bank Limited
Logo
Slogan Excellence in Banking

Legal Form Public Limited Company
Category Commercial
Type Private
Origin Local
Financial Year End December

DHBLBDDH
Swift Code
Date of Incorporation July 05, 1995
Formal Inauguration July 05, 1995
Number of Branches 101
Core Banking Activities Commercial Banking Activities, Money Market Operation,
Financial Intermediary services, Any Related Financial Services.
Registered Office 71, PuranaPaltan Lane, Dhaka, Bangladesh.
Phone +8802 5831 4424, +8802 5831 4425-31, 5831 4624-8

Website http:// www.dhaka bankltd.com
Table 1: Corporate Information of DBL

Source: www.dhakabankltd.com
7
2.2.1 Operational Organogram
Organizational Hierarchy is shown below in an ascending order:
Managing Director
Deputy Managing Director
Senior Executive Vice President
Executive Vice President
Senior Vice President
Vice President
Senior Asst. Vice President
First Assistant Vice President
Assistant Vice President
Senior Principal Officer
Principal Officer
Senior Officer
Management Trainee Officer
Junior Officer
Asst. Officer/Asst. Cash Officer
Trainee Asst. Officer/Trainee Asst. Cash Officer
Telephone Operator
Trainee Telephone Operator
Chart-01: Organizational Hierarchy
Source: Dhaka Bank Ltd.
8
2.3 Corporate Governance:
Corporate governance is very essential part of the culture and business practice of Dhaka Bank
Ltd. The company is being focused and measured by the board of directors. It is the board of that
frames the vision, mission, aims and tactical objectives. The board’s vitality, guidance,
stewardship, policy making are all that drives the company towards maintainable growth. The
management’s role is to perform those policies in a professional, proactive and at the same time,
ethical, suitable custom.
List of Board of Directors of DBL
Mr. Reshadur Rahman Chairman
Mr. Md. Amirullah Vice Chairman
Mr. Abdul Hai Sarker Director
Mrs. Rokshana Zaman Director
Mr. Altaf Hossain Sarker Director
Mr. Mohammed Hanif Director
Mr. Abdullah Al Ahsan Director
Mr. Khondoker Monir Uddin Director
Mr. Tahidul Hossain Chowdhury Director
Mr. Jashim Uddin Director
Mr. Khondoker Jamil Uddin Director
Mr. Mirza Yasser Abbas Director
Mr. Amanullah Sarker Director
Mrs. Manoara Khandaker Director
Mr. M. A. Yussouf Khan Independent Director
Mr. Md. Muzibur Rahman Independent Director
Mr. A.S Salahuddin Ahmed Independent Director
Table 2: List of BoD
9
2.4 Mission and Vision:
Mission
To be the premier financial institution in the country providing high quality products and services
backed by latest technology and a team of highly motivated personnel to deliver Excellence in
Banking.
Vision
At Dhaka Bank, we draw our inspiration from the distant stars. Our vision is to assure standard
that makes every banking transaction a pleasurable experience. Our endeavor is to offer you
supreme service through accuracy, reliability, timely delivery, cutting edge technology and
tailored solution for business needs, global reach in trade and commerce and high yield on your
investments.
Our people, products and processes are aligned to meet the demand of our discerning customers.
Our goal is to achieve a distinct foresight. Our prime objective is to deliver a quality that
demonstrates a true reflection of our vision – Excellence in Banking.
Values of DBL
 Customer Focus.
 Integrity and Honesty
 Quality
 Teamwork.
 Respect for the Individual
 Responsible Citizenship
 Transparency and Accountability
 Environmentally Conscious
 High Morale
10
2.5 Product & Service offered:
The product/service offers by Dhaka Bank is shown below in a chart:
Product & services
Product
Services
Internet Banking
SMS Banking
Locker
ATM Card
Liability Products VISA Credit Card

Asset Products
Savings Bundled Utility Bill
Home loan
Product
Personal loan
Deposit Pension
Scheme Vacation loan
Car loan
Special Deposit Scheme
Any Purpose loan
Deposit Double Scheme
Gift Cheque
Chart 2: Products & service offered by DBL
Source: www.dhakabankltd.com
11
2.6 Porters Five Forces on Dhaka Bank Ltd:
1. Threat of new entrants
2. Threat of substitute products and services
3. Rivalry among existing firms
4. Bargaining power of suppliers
5. Bargaining power of buyers
Threat of new entrants (Low)

 New Competitors are companies that are not presently competing in an industry but have
the possible to do so if they choose.
 The banking industry in our country is still in its growth stage.
 To enter into the industry it requires high amount of money in addition in our country about
59 banks having more than 2600 branches (approximate).
 Government licensing and Bangladesh Bank regulations are also another factor that is
affecting the risk of new entrance. So the risk of new entry is low in banking industry.
12
Threat of substitute products and services (Medium)
 The largest threats of substitution of Dhaka Bank Ltd. Are not form rival banks but from
non-financial competitors.
 There are many options other than the banks to invest surplus money for the Clients.
 They can invest their money in the Stock market, Mutual fund, Treasury bond,
Debentures, etc. So they have so many substitutes other than banking to invest their
money. So, threat of substitute product is medium for Dhaka bank.
The Bargaining Power of Buyers: (Medium)

There are so many banks now-a-days, all banks are offering new offers for he people to attract the
customers. There are so many options to the people now-a-days. They can easily switch on another
bank. Now a day’s people are investing in stock market, mutual fund etc. in terms of that I can say
that threat of bargaining power is low but switching system is not that much easy.
The Bargaining Power of Suppliers: (High)
Depositors are the main suppliers of any bank. They keep their money in the bank and bank use
their money. So if any depositors get any better opportunity like good interest rate with same
amount of money from some other bank then he/she will move to that bank. So for that reason
Dhaka Bank always has a good understanding with their customers and applying new offers to
attract the depositors.
Rivalry among Existing Firms: (High)
Banking industry in Bangladesh is very tough because there are many small and medium banks
are introducing themselves. Multi giant foreign banks are also there and offering attractive plans
to the customers. Because of the following reasons:
 Depositors cost of switching banks are low.
 Major rivals are equal or close to the size and capability (revenue and volume).
 Slow market growth due to the sluggish economy.
 Exit barriers are higher.
13
SOWT ANALYSIS OF DBL
INTERNAL FACTORS EXTERNAL FACTORS
Strengths: Opportunity:
 Strong corporate identity  Shariah based Islamic banking
 Service quality  Similar products are offer others bank
 Pricing effectiveness  ATM banking services.
 Special skill & knowledge  Change of Government Policy.
 Positive public image.  New product service
 Hospitable Working Environment
 Highly Motivated Workforce
Weakness: Threat:
 High charges of L/C  Upcoming Banks/Branches
 DBL has lack of ATM booth.  Similar products are offer others bank
 High cost for maintaining an account  Promotion effectiveness.
 Subordinates absence in policy  Change of Government Policy.
making.  Economic recession
 Discouraging small entrepreneurs  Technological advantages
 Lack of Proper Motivation  increase in labor costs
Chart 3: SWOT analysis of DBL
14
2.7 SOWT Analysis of Dhaka Bank Ltd.
Strengths:
Strength represents the positive attitude internal factor that a company can use to accomplish it
mission, goals, & objectives. They might include:
 Strong corporate identity
 Service quality
 Pricing effectiveness
 Special skill & knowledge
 Positive public image.
 Hospitable Working Environment
 Highly Motivated Workforce
 Competitive advantage
 Strong financial position
Weakness:
Weakness represents the negative attitude internal factor that inhibits or restricts the
accomplishment of company’s mission goal & objectives. They might include:
 High charges of L/C
 DBL has lack of ATM booth.
 High cost for maintaining an account
 Subordinates absence in policy making.
 Discouraging small entrepreneurs
 Lack of Proper Motivation
Opportunity:
Opportunities are the external factor that a firm can exploit to accomplish its mission, moreover
competitors weaknesses are the opportunities. They might include:
 Country wide network
 Experienced manager
 Huge population
 Usage of efficient software
15
 Sales force effectiveness.
 Customer retention.
 Innovation effectiveness.
Threat:
Threats are negative external forces that restrict a company’s ability to achieve its mission goal, &
objectives. Threat to the business can take variety type of forms such as:
 Upcoming Banks/Branches
 Similar products are offer others bank
 Promotion effectiveness.
 Change of Government Policy.
 Economic recession
 Technological advantages
 Increase in labor costs.
16
2.8 IFAS of Dhaka Bank Ltd.
Internal Factor Analysis Summary
Internal factors Weight Rating Weighted Comment
core
Strengths
Strong corporate identity 0.15 4 0.60 Needs to keep it
Service Quality 0.11 3 0.33 Room for

improvement
Hospitable working environment 0.14 4 0.56 Good
Special skill & knowledge 0.12 3 0.36 Have to work with it

properly
Weakness
Lack of ATM booth 0.13 2 0.26 Have to increase it for

better service
High cost for a/c maintain 0.10 1 0.10 Decrease the cost for
increasing customer
Subordinates absence in decision 0.13 2 0.26 Big disadvantage

making
Discouraging small entrepreneurs 0.12 1 0.12 Needs to encourage
small entity
Total 1.00 2.59
17
2.9 EFAS of Dhaka Bank Ltd.
External Factor Analysis Summary
External factors Weight Rating Weighted Comment
core
Opportunities
Shariah based Islamic banking 0.15 4 0.60 Needs to keep make it

popular as most of the
people are muslim.
ATM banking 0.11 3 0.33 Helps customer in
every walks
Change of government policies 0.12 2 0.24 Good for bank in

some ways
New product service 0.10 1 0.10 Have to work with it

properly
Threats
Upcoming banks 0.13 3 0.39 Need to capture

market with new
products
Similar product offered by others 0.15 4 0.60 Have to introduce
new product and
service
Increase in labor cost 0.12 2 0.24
Technological advantages 0.12 1 0.12 Needs to keep up

with it
Total 1.00 2.63
18
2.10 Graphical analysis of financial position
Financial data are from the appendix part (Appendix-AN). A highlights of five years data are
shown in banks format.
2.10.1 Net Profit after Tax

[Amount in Million BDT]
Year 2014 2015 2016 2017 2018
Amount 2,029 1,417 1,466 1,495 1,359
Net Profit after Tax
2029
BDT Iin Million
1466 1495
1417 1359
2014 2015 2016 2017 2018
Amount
Graph 1: Net Profit after tax

Interpretation: The net profit of Dhaka Bank Limited in 2014 was 2027 million and in 2015 it
was less than previous year (1417million). In 2016 net profit was 1466 million which was bit more
than 2015. Net profit of the Bank after tax stood at 1495million in 2017. In 2018 Bank stands with
Tk. 1359 million.
19
2.10.2 Total Assets
Year 2014 2015 2016 2017 2018
Amount 1,58,748 1,76,362 2,02,192 2,29,453 273,976
Total Asset
273976
229453
202192
Million BDT
176362
158748
2014 2015 2016 2017 2018
amount
Graph 2: Total Asset

Interpretation: According to the Balance sheet in 2014 total assets was Tk.158748 million. In
2015 total assets increased to Tk. 176362 million. Gradually the total assets increased year by
year, in 2016 it was Tk. 202192 million, in 2017 it was 229543 million, in 2018 total assets was
Tk. 273976 million that was higher than last 4 year.
20
2.10.3 Total Investment
Year 2014 2015 2016 2017 2018
Amount 19,699 20,799 21,306 23,182 27,620
Total Investment
27620
23182
20799 21306
19699
Million BDT
2014 2015 2016 2017 2018
amount
Graph 3: Total Investment

Interpretation: According to the balance sheet total investment in 201 was Tk.19699 million.
In 2015 it was increased in Tk.20799 million. In 2016 and 2017, total investments were
Tk.21306 million and Tk. 23182 million. In 2018, the total investment was extremely good with
Tk.27620 million.
21
2.11 Ratio Analysis
2.11.1 The return on assets (ROA)
The return on assets (ROA) percentage shows how profitable a company's assets are in generating
revenue. Higher the percentage of return can increase the efficiency of assets. Five years ROA of
DBL.
Year 2014 2015 2016 2017 2018

ROA (%) 1.34 0.86 0.77 0.69 0.54
ROA
1.34
0.86
%
0.77
0.69
0.54
2014 2015 2016 2017 2018
ROA
Graph 4: ROA
Interpretation: Return on Asset basically measures that how much profit a bank can generate by
utilizing their assets. Here the more utilization of assets can create more profit which will be better
for a bank. From the above graph it can be said that Dhaka Bank lost its efficiency in year 2015
because unable to generate higher profits because of not utilizing their assets in proper way. In
year 2016 it continues its fall. In 2014, Dhaka Bank Limited was in the highest position and gained
maximum profit by proper utilizing the assets with 1.34%.
22
2.11.2 Return on equity (ROE)
Return on equity (ROE) measures the rate of return on the ownership interest (shareholders
equity) of the common stock owners. It measures a firm's efficiency at generating profits from
every unit of shareholders' equity (also known as net assets or assets minus liabilities). Moreover,
it is a closely watched number among knowledgeable investors. It is a strong measure of how
well the management of a company creates value for its shareholders.
Year 2014 2015 2016 2017 2018

ROE (%) 15.92 10.74 10.15 9.21 8.18
ROE
15.92
10.74
10.15
9.21
%
8.18
2014 2015 2016 2017 2018
ROE
Graph 5: ROE
Interpretation: The information shows Dhaka Banks ROE was in 2014 with 15.92%, and in 2015
it was decreased 10.74%, But In 2016 the bank could not create value for their shareholder’s with
10.15%. In 2017 again Dhaka Bank decreased its ROE with 9.21%. And in 2018 it was lowest with
8.18%. Each year it`s going down as the profit is going down also.
23
2.11.3 Earnings per share
An investor buys a stock in the hope of realizing a return in the form of either dividends or future
increases in the value of the stock. Because earnings form the basis for dividend payments and
future increases in the value of shares, investors are interested in a company’s earnings per share.
Year 2014 2015 2016 2017 2018
EPS(BDT) 3.57 2.3 2.13 1.84 1.67
EPS
3.57
2.3
2.13
BDT
1.84
1.67
2014 2015 2016 2017 2018
EPS
Graph 6: EPS
Interpretation: In 2018, Dhaka Bank achieved the lowest Earnings per Share (EPS) with 1.67.In
2014 EPS were good with 3.57 BDT per share. But In 2015 EPS it takes a down fall and it`s
continuing.
24
2.11.4 Return on Investment:
Year 2014 2015 2016 2017 2018
ROI (%) 22% 15% 13% 13% 10%

Year 2014 2015 2016 2017 2018
Net Profit 2,029 1,437 1,466 1,495 1,359
Total Investment 19,699 20,799 21,306 23,182 27,620
ROI
22
15
13 13
%
10
2014 2015 2016 2017 2018
ROI
Graph 7: ROI
Interpretation: The graph represent that the Return on Investment of Dhaka bank is on the
downfall. From 2014 the rate is going down. And this is not good sign for the organization. So,
they need to be careful about it.
25
2.11.5 Cash to Deposit Ratio
Cash Deposit ratio (CDR) is the ratio of how much a bank lends out of the deposits it has mobilized.
It indicates how much of the bank core funds are being used for lending, the main banking activity.
Year 2014 2015 2016 2017 2018

81.26 84.74 83.87 82.64 82.79
CDR (%)
CDR
84.74
83.87
82.64 82.79
%
81.26
2014 2015 2016 2017 2018
CDR
Graph 8: CDR
Interpretation: The graph represent that the Cash to Deposit Ratio of Dhaka bank is 81.26% on
2014. Then it grow in 2015. Dhaka bank lend out almost 85% of its deposit where its ideal ratio
should be 65-75%. So, this is not good sign for the organization. They need to be careful about it.
26
Part 3
Topic Part
27
3.1 Credit & Loan Management of DBL
The loan and credit department is one of the most important departments of any bank. The money
mobilized from ultimate surplus units are allocated through this department to the ultimate deficit
unit (borrower). Success of this department keeps a great influence on the overall profit of a bank.
Again, Failure of this department may lead the bank to huge losses or even to bankruptcy. Like
any other bank Dhaka bank’s credit division also tries to do their job perfectly.
3.2 Loan Policy of DBL

Lending being the most important function of commercial bank, every bank should have own
credit policy. The credit policy of Dhaka Bank Limited has been formulated of the plan of “ALL
NEW LOANS TO BE GOODS LOANS”; the plan was formed on the basis of the following
objectives:
 To maximize the profit of the bank by making sound lending
 To deliver credit to viable borrowing at a reasonable cost
 To provide satisfactory return on investment
 To assist the social and economic development of the country
 To deliver general banking services to the public and credit to viable borrowers at a
reasonable cost
But in DBL most of the lending officers are not familiar with their written credit policy or lending
guidelines. They have got only some oral instruction from the senior management or in charge of
credit. If all the lending officers of DBL thoroughly know and understand their credit policy it will
be very helpful for them to do their job more efficiently.
3.3 Functions of Credit Division

Money lending is one of the main functions of a commercial bank. In the lending process, selection
of borrower is the most crucial and vital job for a banker. Before a customer enjoys credit facilities
it is important that the applicant should qualify for five Cs. The five Cs are:
 Character – Intention to pay back the loan
 Capacity – Borrower’s competence in terms of utilizing the fund profitably and generate
income
 Capital –Financial strength to Lending cover the risk
 Conditions – General business condition between two parties
 Collateral – Implies additional securities
28
In addition, objectives of the credit department are managing credit exposure of the bank,
maintaining credit risk, compliance of Central Bank Ltd, recovering or collecting dues of retail
loans or advances. At present credit division performs following activities:
 Dealing with Corporate & Retail Credit
 Perform Collection and Monitoring Activity
 Support Recovery & Risk Management
Besides this, the activities of this department include managing the financial books of the bank,
checking all entries of the book are according to standards, preparing daily reports for Bangladesh
Bank, revenue appropriation and calculations, setting the internal pricing rates etc.
3.4 Different types of loan:

Broadly, there are two types of loan such as-
 RETAIL LOAN AND
 CORPORATE LOAN
For each different types of loan, credit officer have follow different steps to accomplish credit
activities appropriately.
3.4.1 RETAIL
Retail loans are given for personal usage rather than for business purposes. It includes auto loan,
personal loan, home loan and vacation loan.
Personal Loan
The objectives of this loan are to provide essential household durable to the fixed income group
(Service Holders) and other eligible borrowers. Car loan, loan for house renovation, vacation loan,
marriage loan and loan for household equipment well as entertainment products are governed by
personal loan program. Depending on the size and purpose of the loan, the number of installments
varies from 12 to 48 months. In DBL the minimum amount one can borrow under this facility is
BDT 25,000 and the maximum amount is BDT 500,000. Personal loan is given under personal
guarantee of the borrower and another third parson known to the borrower. There is also a
processing fee of 1.5% taken at the time of disbursement of the loan.
29
Eligibility:
 Salaried Individuals
 Professionals
Min Max
Age Limit 21 years 60 years
Loan size 25000 BDT 1500000 BDT
Interest rate per annum 15% 19%
Car loan
Car loan provide for purchasing customer desired car. DBL provide car loan under following
condition.
Eligibility:
 Professionals
Min Max
Loan size 10,00,000 BDT 40,00,000 BDT
Interest rate per annum 15%
Other Terms & Conditions:

 Minimum Gross Family Income: BDT 50,000.00
 Loan Facility for Brand New or Re-Conditioned Vehicle, not older than 6 Years.
 Vehicle should be for personal use only.
Home Loan
Home Loan is a term loan facility to purchase your desired home/flat. DBL also provide home
loan under following situation
30
Eligibility:
 Professionals
 Business Person
Min Max
Loan size 20,00,000 BDT Up to 1,00,00,000
Interest rate per annum Depending on the size and tenure, Dhaka Bank Home Loan
interest rates vary from 12% to 13.50%
Tenure Maximum 15 Years depending on the size and credibility.
Security Registered Mortgage of the House/Apartment
Other Terms & Conditions Minimum Gross Family Income: BDT 40,000.00
Govt. Charges As per Govt. Rules
3.4.2 CORPORATE
Any loan exceeding 1, 00, 00,000 BDT and issued for business and trade purposes is defined as
corporate loan. Such loans mainly serve the purpose of initials for the establishment of industry or
large scale factory.
Bank Guarantee
Bank Guarantee is one sort of non-funded facility. Bank Guarantee is an irrevocable obligation of
a bank to pay a pre-agreed amount of money to a third party on behalf of a customer of a bank. A
contract of guarantee is thus secondary contract, the principal contract being between the
beneficiary / creditor and the principal / principal debtor themselves to which guarantor is not a
part. If the promise or the liability in the principal contract is not fulfilled or discharged, only then
the liability of guarantor or surety arises.
31
SME (Small & Medium Enterprise) Loans
This type of loan is disbursed for business purposes but the amount loaned does not exceed 1, 00,
00,000 BDT. The amount loaned here serves the purpose of potential (partial) working capital for
small and medium business ventures.
3.5 Operational Guidelines for Different Credit Facilities
3.5.1 RETAIL LOAN

Retail loan can be classified into different types which are as follows-
Secured Overdraft (FO-FDR, DPS)
In case of Fresh loan:

 Receiving customer Application (RFCL)
 Receiving the Instrument (FDR, DPS) duly discharged by the client
 Verification of the Instrument, signature verification & lien marking from General Banking
Division
 Preparation of Office Note
 Preparation of Sanction Advice & get it accepted by the client
 Obtain charge documents from the clients
 Mail limit request form to Credit Admin, Head Office for limit insertion
 Deduct charges
 Stamping the charge documents
 Entry of Security Documents in the SISO Register
 Safekeeping of Security Documents in the Safety Vault.
In case of Renewal:
 Receiving customer Application
In case of Enhancement:
 Receiving customer Application
 Receiving new Instrument (FDR, DPS) duly discharged by the client
32
 Verification of the Instrument, signature verification & lien marking from General Banking
Division
 Deduct charges
And Follow-up:
 Issue Letters to the clients for renewal before one month of the expiry date.
 Call the clients for renewal at least on week before the expiry date.
 Issue Letters to the clients for payment of Interest/EOL within one week of each quarter
end.
 Call the clients for payment of Interest/EOL on regular basis.
 Regular update of the spread in line with the change of FDR interest rate
 Regular follow up of the EOL SOD Accounts so that outstanding does not exceed the
security (encashment) value.
 Regular follow up of the Expired SOD Accounts so that it does not become classified.
Personal Loan
Application & Disbursement

 Receiving customer Application in prescribed form along with required documents &
Application fee.
 Receiving CIB Undertaking for the Applicant & Guarantor along with fee
 Scrutinize the Application Form & attached documents carefully
 Forward the Application Form & CIB Undertaking to Head Office (if found in order and
you are satisfied)
 Follow-up the progress of the file in Retail Banking Division
 Preparation of Sanction Advice & get it accepted by the client after getting approval from
Head Office
 Obtain signature on the charge documents from the client
 Obtain 3 unfilled Cheques from the client
 Ensure deposit of charges by the client in the link account
33
 Disburse the Loan by transferring the amount to client’s Savings Account after completion
of documentation as per H.O. approval
Follow-up
 After disbursement, ensure regular payment of monthly installment by the clients
 Prepare the overdue list in the first working day of every month
 Call all the defaulting borrowers for recovery of overdue installments throughout month
 Call the Guarantors if the client is unreachable over phone or if the client breach
commitment of payment several times.
 Issue 1st reminder letter to client if 1 installment due
 Issue 2nd reminder letter to client if 2 installment due
 Issue 3rd reminder letter to client & guarantor if 3installment due and forward the shadow
file to Monitoring Unit, Head Office
 Visit client’s residence if above procedure does not work,
Car Loan
Application & Disbursement

Application fee.
you are satisfied)
Head Office
 Issue Purchase Order in favor of the Car Vendor with other related documents
 Obtain all required Car Documents (copy of Registration & Insurance cover note, Original
Delivery Challan, Bill, Money Receipt, and Insurance Policy) and cross match those with
the sanction & Quotation
 Physically verify the vehicle (Reg. No., Engine No. & Chasis No.)
34
 Ensure deposit of charges by the client in the link account
 Disburse the Loan vide Pay Order favoring Car Vendor after completion of documentation
as per H.O. approval
Follow-up
Same as Personal Loan
Home Loan
Application & Disbursement:

Application fee.
 Visit the property to physically verify the possession & ownership and also obtain valuation
Report by the Surveyor
you are satisfied)
Head Office
 Obtain all land related documents from the client and get it verified by the lawyer (Vetting
the Documents)
 Execute Tripartite Agreement as per Lawyer’s draft
 Complete all other documentation formalities as per H.O. approval
 Ensure deposit of all charges by the client in the link account
 Disburse the Loan vide Pay Order favoring Car Vendor after completion of documentation
as per H.O. approval
35
Documentation
 Obtain Charge Documents, Cheques, Tripartite Documents & Land related documents
before disbursement,
 Follow-up regularly whether registration formalities has been completed or not
 Obtain Title Deed, DCR, Mutation, Rent Receipt, DCC Holding Tax Receipt after
completion of registration of the Flat
 Obtain RAJUK’s NOC for Mortgage if RAJUK’s property
 Obtain Draft of Mortgage Deed from lawyer
 Complete Mortgage formalities in the concerned Sub-Registry office
 Obtain Certified Copy of Mortgage Deed
Follow-up
Same as Personal Loan
3.6 Overall Procedure for Sanctioning Loan:

The following procedure need to be followed for giving advances to the customer. These are:
 Party’s application
 Filling form-A
 Collecting CIB report from Bangladesh Bank
 Processing loan proposal
 Project appraisal
 Head office approval
 Sanction letter
 Documentation
 Disbursement
3.7 Loan Performance of DBL For last Five Years

Yearly operating profit of DBL starts to fall short in 2016 due to an increase in default loans.
The following data will help to understand the matter easily.
36
Year 2014 2015 2016 2017 2018
Nonperforming 5,657 5,491 5,403 9,209 9,009
loans Volumes
NPL volume
9209 9009
Million BDT
5657 5491 5403
2014 2015 2016 2017 2018

NPL volume 5657 5491 5403 9209 9009
Graph 9: NPL volume of DBL
From the graph, it is to be clear that the nonperforming loan amount of Dhaka Bank Ltd. in 2014
was BDT 5657 million. In the following year the amount went down but still it was higher at 5491
million comparing to previous year. But in the year 2017, the amount of nonperforming loan was
increased at an alarming rate, 9209 million BDT which was almost double the amount in 2016.
That means the bank is in under high risk.
The scenario is much worse when it is compared with the total loan. The following table shows
the five years data relating the total loan against the NPL.
37
Year 2014 2015 2016 2017 2018
Total Loans 103,132 117,840 134,689 154,017 180,626

(Million
BDT)
NPL To total 5.49 4.66 4.01 5.98 4.99
Loans (%)
NPL to Total Loan
180626
154017
134689
117840
103132
5.49 4.66 4.01 5.98 4.99

2014 2015 2016 2017 2018
Total Loan 103132 117840 134689 154017 180626
NPL TO Total Loan 5.49 4.66 4.01 5.98 4.99
Graph 10: NPL to Total loan
The figure shows the scenario that almost 5% of its total loan is nonperforming loan. These loans
are like a burden to the bank as they are not generating any revenue to the bank. There might be
some factors bank has to look up to minimize the nonperforming loan. These factors somehow
impact the loan performance of the bank. They are:
38
Political Influence: Though the officials informed that there is no political influence in the lending
decision making process, there is a suspect of having acute political pressure in this issue.
Politically biased decisions lead the loans towards being default and the banking sector towards a
vulnerable position. The fraud borrowers are very cunning and they make webs for the people who
are associated in lending as well as auditing and reporting process. Sometimes the loan department
sent proposal to Head Office as negative but the higher authority made that positive and approved
the loan in favor of the client. Loan department and branch manager assumed that the client could
be harmful for the bank and made the proposal negative. But due to the link with high officials and
a political party, the client became successful to get loan. So, political influence or pressure has an
important impact on the banks loan department.
Incomplete Sanction Advice: Sometimes the loan department sends proposal with incomplete
information of the borrower with false document to the Head Office and based on that HO also
issue incomplete sanction advice in favor of the client.
Providing Extra Benefits to the Client: Another bad practice are found in the bank is providing
extra benefit to the clients. Here the meaning of extra benefit can be defined in different ways. For
example, a client’s collateral may not enough to get certain amount of loan but getting more than
that, which may fall short in terms of retuning the loan if the person is unable to repay the loan.
Investment in Risky Project: The branches have business target to fill up every year. And over
the years the competition has increased so much. To survive in the competitive market, banks try
to find out different projects where they can invest and get a healthy return. Where there is good
return there is also high risk. Investing in high risk projects could make the banks profitable as
well as looser sometimes.
Fund Diversion: Fund diversion is one of the main problems in Bangladeshi banking sector which
becomes more crucial over the years now. Banks disburse the money directly to the clients account
and the clients can do anything with the money they want. They took loan from bank for doing
business but if they spend money in any unproductive purpose such as invest in share market, buy
cars, purchase land, and spend without any goal then the fund becomes diverted. Fund diversion
makes the clients unable to make return to repay the loan thus the loan fall ultimately.
39
3.8 Corporate Governance Disclosure of Dhaka Bank Ltd
Dhaka Bank Ltd disclosed their Corporate Governance compliance provided by Bangladesh bank
that all the banks must follow. All the credit policies of the bank must be approved by the board
of directors. Top management and chief finance officers formulate the credit policies and the
policies are approved at board meeting. Sometimes bank failed to communicate their credit
policies down the line. In order to make the policies efficient and effective, all the associated
officials must know the policies very well. Here the bank lagged behind to communicate their
credit policy with down the line properly. But often it`s found sincerely maintain the policy. The
credit policy of the bank must reflect the roles and responsibilities of all related officials such as
who make proposal, who analysis the loan applications, who disburse loans, who supervise and
monitor clients and who recover the loans. From the questionnaire survey it was found that credit
policy show specific roles and responsibilities of the associated people but in the casual discussion
it was observed that the assigned people do not do their duty properly. As a result, the bank`s
nonperforming loans are increasing day-by-day. DBL follows the Credit Risk Grading.
Relationship managers search for the loan clients and that is why they may be biased about their
clients. To remove such problem relationship managers should be separated from investment
department. In case of lending, age of the borrower should be considered as well. If the person is
more than 60 years the bank tries to avoid that person from lending. Collateral is very important
for the banks for recovery purpose in case of nonperforming loans. The bank has separate teams
for reviewing the amount and type of proposed loan, purpose of the loan, the loan structure (i.e.
tenor, covenants, repayment schedule, and interest rate), security arrangement etc. The bank
officials informed that there is no political and management influence on credit department. But
there`s a deep suspect that huge influence is present in credit department. From the survey it`s
clear that bank has acute pressure. Officials from bank informed that the efficiency of audit team
is important in case of detecting fraud and scam. The audit committee must disclose the detected
scams to the board of directors to take necessary steps. Sometimes the audit committee has nothing
to do because of political and management pressure. From the discussion it was found that conflict
of interest exists between the board of director and audit committee. An invisible clash between
them were found in some cases i.e. the audit committee tries to detect shortfalls but some members
of the board want to ignore those shortfalls.
40
Part 4
Actual Task Part
41
4.1 Internship Experience:
As for the partial fulfillment of the BBA program I have done my internship program in DHAKA
Bank Ltd, Sonargaon Janapath Branch, Uttara Dhaka-1230. It was great pleasure for me to work
in this bank. I have learned so many things from this bank. All of the employees were very
cooperative with me. I was working mainly General Banking and Credit Department. In this
branch my Supervisor was Sumaiya Tabassum. I worked under her supervision.
4.2 Work Performed by Me:

I did my three months internship program in DHAKA Bank Ltd, Sonargaon Janapath Branch.
My job duration was from September 1 to November 30, 2019. Within this time of period, I
gained lots of experience about corporate environment. I was placed in different departments on
replacement basis. My main observation and responsibilities are in General Banking and Credit
department of DHAKA Bank Ltd, Sonargaon Janapath Branch. I was working with Sumaiya
Tabassum who is the credit in charge of Sonargaon Janapath Branch. I learn many things there. I
would like to divide it in two types:
 Primary Learning
 Secondary Learning
4.3 Primary Learning

I worked at most the desk in Dhaka Bank Ltd, Sonargaon Janapath Branch during my period of
internee. Those are:
Account Opening Section

At First I have started with the account opening department. Here I have learned the process of
opening an account and the documents that are needed for opening an accounts & types of
accounts allocated by Dhaka Bank Limited. My supervisor tried to give me a brief description
of her routine tasks before positioning me to any specific task. Later on through my personal
observation and superior officer’s guidance, ultimately allow me to understand the purpose of
various types of accounts along with their features.
Types of account I opened:
 Current deposit Account
 Savings Deposit account
 Fixed Deposit Account (FDR)
 Special Deposit Scheme (SDS)
42
 Monthly Deposit Scheme (DPS)
Cash section
Generally intern students are not allowed in cash department but I have the opportunity to work in
cash dept. for several days. I have assisted them in many ways like counting cash & voucher,
photocopying documents. Most of time I was assigned in cash for arranging money for ATM.
Clearing Section
My responsibility was to ensure account number, account holder name, the accuracy of Tk. in
figure and in words which were properly stated in bank’s cheques. After confirming those cheques
were sent to my senior officer. She was responsible for entry to the computer and completing other
tasks.
Receiving Cheque Requisition
A cheque requisition is received from the customer for giving a new cheque book covering a
specific number of pages mentioned by customer. I received the cheque requisitions throughout
the day and sent the list to the head office at the end of the day.
Desk pass
After learning the procedures of account opening I was appointed to for 2-3 days in the desk pass
of GB. All the documents both inward and outward go through this desk. The responsibility of
this desk is to mark all the documents and give those documents an official desk pass number
and send those documents to appropriate places.
Cheque book Delivery
After giving cheque requisition customers need to wait for their cheque book. After cheque
requisition normally it takes four working days to delivery cheque book to respective
customers. After that customers need to collect their cheque book from our branch.
Cheque book Issue:
When customers come to collecting their cheque book, they need to sign it in the register book.
After that I issued their cheque book and give it to them. After issuing cheque book they can use
their cheque book at any time when they wish. But it has to be in between transaction hour, which
is 10am to up 4pm
Update customer’s information
I had to update customer’s information. Customers who opened their bank account before, some
of them need to update their information and also photo, address, transaction profile, NID card no.
etc. and I had to collect all information from the customers.
43
Photocopy & Scanning of Different Documents
When I opened an account, I needed to collect different documents from customers such as NID
Card, TIN Certificate, Birth Certificate, Trade License, Photo etc. So I needed to photocopy and
scan those documents for banking purpose. After that I print it and return the original copy to the
customers.
Issuing Pay Order
Clients need to issue pay order for handover money from bank to company or other purposes.
Procedure for issuing Pay Order:
 Obtain Pay order application form filled accurately by the applicant
 Receive the amount in cash /transfer with charge amount
 Issue pay order by printing on the banks pay order block
 Preserve the voucher
Card Service
I worked some days at card related work in Dhaka Bank Limited. I did the following activities
in card divisions-
 Filling up the debit card form
 Help client to signature on the form
 Making phone call to clients to collect debit card from the bank.
At Credit Division:
Most of the time in my intern period I have spent in credit department and that’s why I prefer The
Loan related issue as my internship report topic. Firstly I was assigned in credit dept. more than 1
month under direct supervision of Sumaiya Tabassum and at that time I have to perform below
activities-
 Printing, typing and photocopying different documents related credit.
 I had to organize all the customer files (e.g. car loan, home loan) & keep them at a specific
place separately.
 Checking and filling up different loan’s forms
 Data entries in the computer.
 Helping clients that where to signature on the form.
 Sometimes helping supervisor balancing credit & debit.
44
4.4 Secondary Learning
 Organizational culture
 How to behave with other colleagues and officers
 How to behave with the clients
 How to give service to the client
 How to behave with client in challenging situation
 Maintaining time during work
Observation
Working at DBL, Sonargaon Janapath Branch was a great experience for me. I have learnt many
things from them. From my little knowledge what I have observed and some recommendations are
as follows:
 Work environment is very friendly and employees are co-operative.
 Employees are active and sincere to their assigned job responsibilities.
 Generally, banking hour is 10.00 am to 6.00 pm but most of time bankers can’t leave office
before 8 to 9 pm because of work pressure.
Picture: Working in DBL (Sonargaon Janapath br.)
45
Part 5
Research Part
46
5.1 Problem Statement
Nonperforming loans of Dhaka Bank Ltd is increasing and its might be due to not maintaining
proper corporate governance.
5.2 Background of the problem

When I was working in the credit department of Dhaka bank ltd I see their nonperforming loan
is increasing every year. Although they have good corporate governance practice in the bank.
Sometimes there`re some loan customer who is not eligible for getting the loan as his CIB report
is not good but for some invisible reason bank has to give him the loan. As the person`s CIB was
not good ultimately he`s not able to repay the loan money and become nonperforming loan for
the bank. These types of activities are often occurred in the bank. There`re some bad practice in
the bank which push the bank to do so. These activities are increasing the nonperforming loan of
the bank and making the huge loss for the bank. Ultimately taking the bank in a vulnerable
position.
5.3 Project Timeline

To prepare this report I had to spend total 28 days. The project activities are given below:
Project Timeline Activities

Sl no. Description of activities Days
1 Making Questionnaires 3
2 Hypothesis Development 7
3 Survey and Discussion 7
4 Conduct survey research 4
5 Data Analysis and Findings 7
Total= 28 Days
Table 3: Project timeline
47
Gantt chart of project time allocation
Description of activities 17th November To 14th December
3 Days 7 Days 7 Days 4 Days 7 Days
Making Questionnaires
Hypothesis Development
Survey and Discussion
Conduct survey research
Data Analysis and Findings
Figure 1: Gantt chat of project
5.4 Budget Information

Particulars Amount (Tk)
Transport 3300
Printing, photocopy and binding 860
Internet bill 300
Cell phone bill 200
Lunch 2000
Total= 6660 Tk
Table 4: Budget information
48
5.5 Research Methodology
5.5.1 Research Philosophy: I use data only for preparing this practicum report that data I have
collected from organization doing my internship period. Even I do not share the data with other
that I collected from organization. This philosophy of this practicum report is positivism because
I would like to find positive result and if I find out any problem, then I will try appropriate
suggestion to recover the problem.
5.5.2 Research approach: Physical survey method. I did the survey by going from person to
person.
5.5.3 Type of Research: Quantitative method. As it is a systematic investigation of

nonperforming loan of DBL. I gathered quantifiable data and performed statistical test to find the
result.
5.5.4 Method of data collection: For the completion of this report I have collected the data
from both primary and secondary sources.
5.5.5 Primary sources of data:

 Face-to-face conversation with the respective officers and staffs of Dhaka Bank Limited.
 Informal conversation with the officers
 Practical work exposures from the different desks of the departments of the Branch
5.5.6 Secondary sources of data:

 Unpublished data from the branch
 Various books articles, compilations etc.
 Study of the relevant files as instructed by the officers concerned
 Office circular and other published papers
 Website of the Dhaka Bank Limited-www.dhakabankltd.com
5.5.7 Population and Sampling Methods:

Population: The population of the survey was the whole number of employees of Dhaka Bank
limited. Which is around 1966 employees
Sample size: 10 employees of Dhaka bank limited.
49
Sampling procedure: For understanding the fact that why the nonperforming loan of DBL
is increasing, I have used non probability sampling. Under the non probability sampling I
used judgmental sampling because these sample I’ve used are suitable for the research
question.
5.5.6 Research Limitations:

 The major problem that I faced is the management of the bank was unwilling to share or
disclose some information due to confidential issues which was really required to prepare
the report but preparing such intense report requires huge amount of information somehow
I managed to bring up the best within my access limit.
 Another problem that I faced that the officers were so busy with their client that hardly I
could talk with them about my report.
5.6 Data Analysis and Interpretation

5.6.1 Result findings
I have used T-Test formula for finding the result. For analysis of data Microsoft Word, Microsoft
Excel, different tables and graphs are used in this report to make the data meaningful.
5.6.2 Hypothesis Test: T-Test

Relevant data for this report has been collected primarily by direct conversation with the
employees, operational process and different documents. Questionnaire has been used.
Information regarding office activities of the bank has been collected through consulting and
discussion with bank`s employees. As the sample size 10, T test is used for the study. The
following formula has been followed:
𝑥̅ − 𝜇𝑜
T test =(𝑆𝐷÷
√𝑛)
Where,
x̄= Average
µ= Mean Value
n= Sample size
SD= Standard Deviation
By using this equation hypothesis testing part has been completed. Based on this analysis
findings, recommendation and conclusion are made.
50
5.6.3 Hypothesis Scale
I order to analyze the data; a 5-point Likert scale has been used
Hypothesis scale
Opinion Weight
Strongly Disagree 1
Disagree 2
Neither Agree nor Disagree 3
Agree 4
Strongly Agree 5
Table 5: Hypothesis scale
5.6.4 Hypothesis Development and Test

1. Ho: Borrower selection criteria has no negative impact on bank`s loan department profitability
HA: Borrower selection criteria has a negative impact on bank`s loan department profitability
2. Ho: Political influence has no negative impact on bank`s loan department profitability.
HA: Political influence has a negative impact on bank`s loan department profitability.
3. Ho: Management influence has no negative impact on bank`s loan department profitability.
HA: Management influence has a negative impact on bank`s loan department profitability.
4. Ho: Insufficient audit has no impact on bank`s loan department profitability.

HA: Insufficient audit has an impact on bank`s loan department profitability
5. Ho: Fund diversion has no effect on the bank`s loan department profitability.
HA: Fund diversion has effect on the bank`s loan department profitability.
51
Hypothesis Testing
Weight H1 H2 H3 H4 H5
Strongly 1 1 0 0 2 0
Disagree
Disagree 2 4 2 1 3 1
Neither Agree 3 2 1 1 2 2
nor Disagree
Agree 4 2 4 5 2 4
Strongly Agree 5 1 3 3 1 3
Total 28 37 40 27 39
Average 2.8 3.7 3.5 2.7 3.9
Standard Deviation 1.22 1.01 0.94 1.33 0.99
T- Test result -0.51 2.19 3.36 -0.71 2.87
Table 6: Hypothesis testing
Hypothesis Test (H1):

Ho: Borrower selection criteria has no negative impact on bank`s loan department profitability.
HA: Borrower selection criteria has a negative impact on bank`s loan department profitability.
Total = [(1×1)+( 4×2)+( 2×3)+( 2×4)+( 1×5)]=28

Average = Total ÷ n = 28 ÷ 10 = 2.8
Standard Deviation:
Variance, σ2=[{1×(1-2.8)2}+{4×(2-2.8)2}+{2×(3-2.8)2}+{2×(4-2.8)2}+
{1× (5-2.8)2}÷ (10-1) = 1.51
SD, σ =1.22
52
𝑥̅ − 𝜇𝑜 2.8− 3
TCal= = = -0.51
(𝑆𝐷÷√𝑛) (1.22÷√10)
At 5% level of significance T tab value, T 0.05=1.74
SA SD
10% 10%
SD
A D
20%
N
D
A
40%
N SA
20%
Figure 2: Result of H1Test

Comment: At 5% level of significance the null hypothesis is accepted as Tcal < T tab and
concluded that 50% people are disagreed & 30% people are agreed & 20% people have no
comments about the statement that borrower selection criteria has a negative impact on bank`s
loan department.
Ho: Political influence has a no negative impact on bank`s loan department profitability.
HA: Political influence has negative impact on bank`s loan department profitability.
Total = [(0×1)+( 1×2)+( 2×3)+( 4×4)+( 3×5)]=37

Average = Total ÷ n = 37 ÷ 10 = 3.7
Standard Deviation:
Variance, σ2=[{0×(1-3.7)2}+{1×(2-3.7)2}+{2×(3-3.7)2}+{4×(4-3.7)2}+
{3× (5-3.7)2}÷ (10-1) = 1.03
SD, σ =1.01
53
𝑥̅ − 𝜇𝑜 3.7− 3
TCal= = = 2.19
(𝑆𝐷÷√𝑛) (1.01÷√10)
SD D
0%10%
SA SD
30% N
D
20%
N
A
A SA
40%
Figure 3: Result of H2Test

Comment: At 5% level of significance the null hypothesis is rejected as T cal >T tab and
comments about the statement that political influence has a negative impact on bank`s loan
department.
Ho: Management influence has no negative impact on bank`s loan department profitability.
HA: Management influence has a negative impact on bank`s loan department profitability
Total = [(0×1)+( 1×2)+( 1×3)+( 5×4)+( 3×5)]=40

Average = Total ÷ n = 40 ÷ 10 = 4
Standard Deviation:
Variance, σ2=[{0×(1-4)2}+{1×(2-4)2}+{1×(3-4)2}+{5×(4-4)2}+
{3× (5-4)2}÷ (10-1) = 0.88
SD, σ =0.94
54
𝑥̅ − 𝜇𝑜 4− 3
TCal= = = 3.36
(𝑆𝐷÷√𝑛) (0.94÷√10)
SD D
0%10% SD
SA N
30% 10% D
N
A
SA
A
50%
Figure 4: Result of H3 Test

Comment: At 5% level of significance the null hypothesis is rejected as T cal >T tab and
comments about the statement that management influence has a negative impact on bank`s loan
department.
Ho: Insufficient audit has no impact on bank`s loan department profitability.
HA: Insufficient audit has an impact on bank`s loan department profitability.
Total = [(2×1)+( 3×2)+( 2×3)+( 2×4)+( 1×5)]=27

Average = Total ÷ n = 27 ÷ 10 = 2.7
Standard Deviation:
Variance, σ2=[{2×(1-2.7)2}+{3×(2-2.7)2}+{2×(3-2.7)2}+{2×(4-2.7)2}+
{1× (5-2.8)2}÷ (10-1) = 1.78
SD, σ =1.33
55
𝑥̅ − 𝜇𝑜 2.7− 3
TCal= = = -0.71
(𝑆𝐷÷√𝑛) (1.33÷√10)
SA
SD
10%
20% SD
A D
20%
N
A
D
N 30% SA
20%
Comment: At 5% level of significance the null hypothesis is accepted as T cal <T tab and
comments about the statement that insufficient audit has impact on bank`s loan department.
Ho: Fund diversion has no effect on the bank`s loan department profitability
HA: Fund diversion has effect on the bank`s loan department profitability
Total = [(0×1)+( 1×2)+( 2×3)+( 4×4)+( 3×5)]=39

Average = Total ÷ n = 39 ÷ 10 = 3.9
Standard Deviation:
Variance, σ2=[{0×(1-3.9)2}+{1×(2-3.9)2}+{2×(3-3.9)2}+{4×(4-3.9)2}+
{3× (5-3.9)2}÷ (10-1) = 0.98
SD, σ =0.99
56
𝑥̅ − 𝜇𝑜 3.9− 3
TCal= = = 2.87
(𝑆𝐷÷√𝑛) (0.99÷√10)
SD D
0% 10%
SA SD
30% N D
20%
N
A
SA
A
40%

Comment: At 5% level of significance the null hypothesis is rejected as T cal>T tab and concluded
that 10% people are disagreed & 70% people are agreed & 20% people have no comments about
the statement that fund diversion has effect on the bank`s loan department.
57
5.7 Research Findings
The findings of the analysis and interpretation are as follows:
50% people are disagreed & 30% people are agreed & 20% people have no
H1
comments. So, there might be some negative impact of borrower selection criteria
but it may not affect the loan performance.
Though the officials informed that there is no political influence in the loan process,
H2
there is a suspect of having acute political pressure. As 70% of people are agreed so,
it`s clear that political influence has a negative impact on bank`s loan performance.
As 80% people are agreed & 10% people have no comments so, it can be concluded
H3
that management has influence on bank`s loan performance ad it is negatively
impacting.
As 50% people are disagreed & 20% of the people have no comments so it`s can be
H4
summarized that insufficient audit has no effect on bank`s loan performance.
As 70% people are agreed & 20% people have no comments so, it`s can be concluded
H5
that fund diversion has effect on bank`s loan performance.
58
5.8 Recommendations
1. Although borrower selection criteria has no impact on bank`s loan performance here in
Dhaka bank ltd but it can be an serious issue if the selection process become faulty. Then
the whole loan process can be faulty too. So in case of selection of right borrower, the bank
should be knowledgeable and aware of the information of the borrower that is proper KYC
(Know Your Customer).
2. Though the bank doesn`t say it officially but there is an acute political influence in bank`s
loan department. Politically influenced decisions lead the loans towards being default and
the bank towards a vulnerable position. So, they shouldn`t be biased on political influence
in the loan process as the rate of default loan of Dhaka Bank is on the rise. Some tricks can
be implemented to minimize the influence as it`s not possible to get rid of it completely.
3. Management has the same influence on the loan process just like the political one. The
management influence in the credit decision making process and this leads the bank
towards default loans. So, the management should not influence the decision process of the
loan for the betterment of the bank`s performance. Qualified and Honest person should be
selected for the management posts.
4. Proper auditing is the main tool that can led the bank in a smooth way. But the audit process
cannot be made properly for various reasons. Proper auditing should be done at least twice
a year regarding the credit value of the branch to minimize the risk.
5. Fund diversion is the major problems in bank`s loan performance and most the default loan
occurs due to this problem. Fund diversion makes the clients unable to make enough return
to repay the loan thus the loan fall ultimately. So, strong monitoring and supervision is a
must to prevent fund diversion. Proper follow up till the end can be a solution to fund
diversion.
59
5.9 Conclusion:
This research aiming at the disclosure of the reasons for which loan performance of Dhaka Bank
Ltd is not well. The data gathered from mainly primary sources were analyzed to get a clear view
of the facts and by the same time some reasons were discovered which has some negative impact
on bank loan performance. To achieve the objective the study includes quantitative analysis of the
survey data to get opinion of the employees of the bank and also five years annual report of Dhaka
Bank Ltd. There are some problem exist as the nonperforming loans are increasing yearly due to
not maintaining the corporate governance which is mainly affecting the loan performance and
increasing nonperforming loan for the bank. If this problems can be solved then the rate of the
nonperforming loan of Dhaka Bank Ltd will be minimized. It can be said that loan performance
will be improved significantly over the next year if the recommendations are followed accordingly,
it will enhance corporate image, improve reputation and ability to enlarge market share and
enhancement, profitability and sustainable development. So hopefully they will try their best to
bring a dynamic corporate governance environment in the organization without any compromise.
60
5.10 References
Publications & Journals
The Daily star “Nonperforming loans in Bangladesh” April 17, 2018
Rezwan Mahmood & Md. Moshin Islam (2015), PRACTICES OF CORPORATE

GOVERNANCE IN THE BANKING SECTOR OF BANGLADESH, International
Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6.
61
5.11 Appendix
Questionnaire
Dear Respondent,
I am a student of BBA, conducting a survey on “Reasons for increasing Nonperforming loans of
Dhaka Bank Limited”. Kindly noted that this is an academic study and the findings will remain
confined within academic interests. No part of this study will be disclosed. Your kind cooperation
will be highly appreciated.
Gender:……………… Years of service in DBL:…………………………………………………….
1. Do you agree that borrower selection criteria has a negative impact on bank`s loan department
profitability?
o Strongly Disagree
o Disagree
o Neither agree nor disagree
o Agree
o Strongly Agree
2. Do you agree that political influence has a negative impact on bank`s loan department profitability?
o Strongly Disagree
o Disagree
o Agree
o Strongly Agree
3. Do you agree that management influence has a negative impact on bank`s loan department
profitability?
o Strongly Disagree
o Disagree
o Agree
o Strongly Agree
4. Do you agree that insufficient audit has impact on bank`s loan department profitability?
o Strongly Disagree
o Disagree
o Agree
o Strongly Agree
5. Do you agree fund diversion has effect on the bank`s loan department profitability?
o Strongly Disagree
o Disagree
o Agree
o Strongly Agree
Thank you.
62
Appendix-AN
63

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Letter of Transmittal

19th December, 2019

First, I would like to show gratitude to the Almighty Allah.

Finally, I wish him all the best in his future endeavors.

Abbreviation Full Form

 To get and organized detail knowledge on the job responsibility.

1.2. Broad Objective

1.3. Specific Objective

1.4. Scope of the Study

1.5. Limitations of the study

Slogan Excellence in Banking

Financial Year End December

Phone +8802 5831 4424, +8802 5831 4425-31, 5831 4624-8

Table 1: Corporate Information of DBL

Organizational Hierarchy is shown below in an ascending order:

Chart-01: Organizational Hierarchy

Source: Dhaka Bank Ltd.

Mr. Md. Amirullah Vice Chairman

Mr. Abdul Hai Sarker Director

Mrs. Rokshana Zaman Director

Mr. Altaf Hossain Sarker Director

Mr. Mohammed Hanif Director

Mr. Abdullah Al Ahsan Director

Mr. Khondoker Monir Uddin Director

Mr. Tahidul Hossain Chowdhury Director

Mr. Jashim Uddin Director

Mr. Khondoker Jamil Uddin Director

Mr. Mirza Yasser Abbas Director

Mr. Amanullah Sarker Director

Mrs. Manoara Khandaker Director

Mr. M. A. Yussouf Khan Independent Director

Mr. Md. Muzibur Rahman Independent Director

Mr. A.S Salahuddin Ahmed Independent Director

Table 2: List of BoD

Product & services

Liability Products VISA Credit Card

Chart 2: Products & service offered by DBL

Threat of new entrants (Low)

The Bargaining Power of Buyers: (Medium)

INTERNAL FACTORS EXTERNAL FACTORS

Chart 3: SWOT analysis of DBL

Strong corporate identity 0.15 4 0.60 Needs to keep it

Service Quality 0.11 3 0.33 Room for

Hospitable working environment 0.14 4 0.56 Good

Special skill & knowledge 0.12 3 0.36 Have to work with it

Lack of ATM booth 0.13 2 0.26 Have to increase it for

Subordinates absence in decision 0.13 2 0.26 Big disadvantage

Total 1.00 2.59

Shariah based Islamic banking 0.15 4 0.60 Needs to keep make it

Change of government policies 0.12 2 0.24 Good for bank in

New product service 0.10 1 0.10 Have to work with it

Upcoming banks 0.13 3 0.39 Need to capture

Technological advantages 0.12 1 0.12 Needs to keep up

Total 1.00 2.63

2.10.1 Net Profit after Tax

Year 2014 2015 2016 2017 2018

Amount 2,029 1,417 1,466 1,495 1,359

Net Profit after Tax

2014 2015 2016 2017 2018

Graph 1: Net Profit after tax

Amount 1,58,748 1,76,362 2,02,192 2,29,453 273,976

2014 2015 2016 2017 2018

Graph 2: Total Asset

Amount 19,699 20,799 21,306 23,182 27,620