Report on Credit Appraisal and Credit Management on Mercantile Bank Ltd

Internship Program is a prerequisite for acquiring BBA degree. Before completion of the degree, a student must undergo the internship program. Internship program is a perfect blend of the theoretical and practical knowledge. Only curriculum activity is not enough for handling the real business situation, therefore it is an opportunity for the students to know about the field of business through the internship program. This program consists of three phases:
1. Organization orientation to acquaint at the intern’s as with structure, function and performance of the organization.
2. The project work pertaining to a particular problem or problems matching with the intern’s area of specification and organization’s requirement and
3. The report writing to summarize the intern’s analysis, finding’s and achievements in proceeding two phases.

Internship report on “Credit Appraisal & Credit Management” in Mercantile Bank Limited, a study on Mirpur Branch has been assigned to me by Mr. Rabiul Islam, Lecturer of School of Business, Asian University of Bangladesh and for this an organization attachment at Mirpur Branch of Mercantile Bank Ltd. has given to me collected necessary data for the project. The report is submitted to the Director, Internship and Placement as a partial fulfillment of the internship program.

Back drop of the Report
Bangladesh is now facing the challenge of globalization and liberalization of trades. Private sector is encouraged to play move vital role in the economy, through the economy is dominated by the large public sector. Under the financial sector reform project (FSRP) the asset mgt system of banking has been strengthened. Under the light it seems necessary to analyze and review the “Credit Appraisal/system and Credit Management of MBL.

Objectives of the Study
The main objective of the study is to introduce the credit mgt system in MBL, Mirpur Branch and its effectiveness in this regard. The specific objectives of the study are as follow:

To explain the meaning and concept of credit appraisal and credit mgt.
To understand the need and objective of credit mgt.
To gather comprehensive knowledge on overall banking functions of MBL.
To acquire in depth knowledge about MBL Credit Mgt functions.
Study the bank’s organizes and controls its lending effect.
To identify the weaknesses and problems in successful/effective credit.

Scope of the Study
Credit Appraisal & Credit Mgt of Mercantile Bank Ltd. covers a wide scope. Here, an overview of Mercantile Bank Ltd. is done. Discussion on fundamental of Credit, Credit monitoring & review, Lending process of MBL are also done.

Though I tried my level best to produce a comprehensive and well-organized report on the “Credit Appraisal & Credit Mgt of MBL” some limitations are also present here.
1. In collecting the current data I have to face great problem, as current data are not readily available in our country.
2. Moreover, because of pro-occupation with closing work the officials of the bank could not spare much time in the desired co-operation to me.
3. This is my first on the job experience, so for our lack of experience, faults may arise in the report though I made maximum effort / to avoid all of these.
4. The communication gap among the different personnel because of excusive workload.

The study required various types of information past & present policies, procedures and methods of credit mgt both primary & secondary data available have been used in preparing this report. The sources of data are as follows:

a. Primary Sources
v Discussion with officials of MBL.
v Experts opinions & comments.
v Face to fact conversation with the clients.

b. Secondary data
v Relevant books, Newspaper, Journals etc.
v Annul report.
v Published documents
v Training materials of MBL.
v Other published papers, documents and reports.

Report Review
This report has two parts. Parts-1 consists of the overview of MBL & organizational back ground whereas Part-2 about project.
Part-1: is comprised of MBL organizational overview, functions performed by MBL, mission of MBL, goals and object of MBL.
Part-2: of the report is about credit of MBL, Credit Appraisal, credit management, sector wise allocation of credit and necessary recommendation is these regards.