Internship Report on Bangladesh Shilpa Bank

Industries play the most important role in the economic development of every country. This is why industrialization has been adopted as a vital means of economic development in most of the developing countries. With that preview, Govt. of Bangladesh has a Development Financing Institution (DFI) named BangladeshShilpa Bank (BSB) on 31st December 1972 under the president order No. 129 of 1972 with a mission of “accelerating the process of industrialization of the country by proving financial assistance and equity support”.

1.2 Problem Statement
A developing country like Bangladesh, a large sum of capital investment is very much needed both in private and public sectors for easy operation of industrialization. Proper project appraisal is important to get maximum benefits from such capital investment. Any inconsistency in appraising a project will have an adverse consequence on the capital structure of a country.

Project appraisal examines and assesses a project before the project is undertaken. It is therefore the procedure of the evaluation of projects and selection from among alternatives. Project appraisal report is prepared by Loan Operation Department (LOD). The project has been appraised by an appraisal team consisting of engineer, economist and financial analyst. This internship report critically evaluates the proposed project through technical analysis, economic analysis and financial evaluation. When the project is found to be technically feasible, financially worthwhile and economically & commercially viable only then that project is financed by Bangladesh Shilpa Bank (BSB). This study forces an effort to the project Appraisal practice of Bangladesh Shilpa Bank (BSB). And with that preview the necessary works have been done.

1.3 Objectives of the Study
This report examines the project appraisal procedure of Bangladesh Shilpa Bank (BSB). To perform this it examine how Bangladesh Shilpa Bank (BSB) appraises project what information it conduct from the entrepreneur & what aspects of a project need to examine & evaluate.

The objectives are summarized as follows:
Ä To get a complete idea about the existing projects appraisal procedure.
Ä Evaluate the particular project regarding the appraisal.
Ä To determine the limitations or problems (if any) of the project appraisal.
Ä To recommend necessary steps to over come such limitations.

1.4 Scope of the Study
This report will primarily focus on the project appraisal technique of Bangladesh Shilpa Bank (BSB). The planned study will cover the appraisal practice, procedures and technique followed by the loan operation department (Lod) in the preparation of appraisal report.

1.5 Methodology of the Study
Proper and smooth completion of research work requires adherence to some rules and methodologies. Rules have been followed to ease the data collection procedure. Accuracy of study depends on the information availability and data analysis.
1.5.1 Study Area:
I have conducted my study relating to the operation area of Bangladesh Shilpa Bank Head Office and other Commercial Branches of Dhaka of Shilpa Bank. The other branches have been excluded due to communication barrier.

15.2 Target Group:
In collecting the required data I have contacted with each departmental head along with other concerned executive body of Bangladesh Shilpa Bank (BSB) and there I have worked for several days in every department. In case of industry analysis I took the suggestions with the responsible personnel of project Implementation Department of Bangladesh Shilpa Bank (BSB) to collect the necessary information and their followed techniques.

1.5.3 Types of Research:
In this study the descriptive type of research has undertaken to gain insights and understanding about overall operation of Bangladesh Shilpa Bank (BSB) and the loan recovery operation.

1.5.4 Source of Information:

The data has been collected from both primary and secondary sources.
The sources of primary data are:
Ä Face to face interview.
Ä Officials’ records & documents of Bangladesh Shilpa Bank (BSB).
Ä Communication and co-ordination with other respective personnel of Bangladesh Shilpa Bank (BSB).
The sources of Secondary data are:
Ä Annual report & appraisal manual followed by Bangladesh Shilpa Bank (BSB).
Ä Journals and relevant Books
1.6 Justification of the Study:
This study will have both practical and academic value. It will help to get a clear idea about the project appraisal practice of Bangladesh Shilpa Bank (BSB). On the other hand, the findings of this study will help to take appropriate actions and steps for the betterment of the existing practice that will basically help the industrial development of the country.

1.7 Limitation of the Study:
This internship report is my first assignment outside our course curriculum in the practical life. I, the students of Department of Finance just have completed our formal education stage. After completing the institutional experience, Practical performance in the formal stages become difficult. So in performing this report our lack of proper knowledge greatly influenced in this performance.

Besides above, have to face some other limitations are:
1. Lack of availability of required data for analysis.
2. Many personnel of Bangladesh Shilpa Bank (BSB) were not cooperative to provide necessary information.
3. Sufficient records, publications facts and figures are not available. These constraints narrowed the scope of the real analysis.
4. As the government institution, employees have no eagerness to supply more because of extra rigidity.
5. Up-to-date information was not available.
6. Improper combination among various departments.
7. For the reason of confidentiality, some useful information cannot be expressed in this report.
8. Finally this is my first job experience. So my knowledge especially in such a research study is limited.