Internship Report On Evaluation of Credit Management System of Janata Bank Limited Bangladesh

In this report, the bank introduced in terms of its Credit structure and operation with Credit and advances. This report will give a clear idea about activities and operational strategies of JBL. Especially this report focuses on the overall Credit Management of Janata Bank Limited.
The objectives of the report were to examine the bank’s present Credit management systems. Its market performance; define the problems the bank is facing in the related areas. Develop a set of new objectives and suggest strategies for meeting competitive pressure. In order to address these issues, in this report, a new set of objectives and strategies were suggested. The Mission statement of the bank is defined as in an intensely competitive and complex financial and business environment; I particularly focus on growth and profitability of concerned.
Structural changes of the bank, as have been suggested, include:
- Development of a structured Human Resources Department
- Segregation of marketing from Credit Administration Department
- Strengthening of IT unit
Suggested strategy in this regard includes higher participation in syndication deals and a concerted effort to build a diversified portfolio.
I have divided the whole report into seven chapters. Those chapters include short profile of Janata Bank, Literature Review of Credit Management, Credit Management of Janata Bank, Discussion and findings, SWOT analysis, Recommendations etc.
In first chapter, I have explained about Background of the study, Objectives, Methodology, Rationale and Scope and Limitations of the Study. In second chapter, I have tried to review the Bank, Its Mission, Objectives and the Management of Janata Bank Limited. In the third chapter, I have explained the Literature Review of Credit Management. In the fourth, fifth and sixth chapter, I have explained Credit Management of Janata Bank Limited, Competitive Analysis. And in seven and last chapter I have showed Findings, Recommendations Conclusion and Bibliography respectively.

In fine, I can say that, I have tried to put my honest and sincere efforts while preparing these report. All my exertion and pains taking efforts will be successful, if it becomes conducive to Janata Bank Limited.

1.1 Background:
From the Inception of banking business credit is an important tool in increasing productivity and thereby increasing the income of borrower. Adequate flow of credit can remove the financial constraints on the borrower. There has been phenomenal growth in the flow of credit after liberation due to government’s desire to increase productivity in the country. All the credit institutions were glared up through a dynamic credit policy to disburse both short term and long term credit. As a result, the flow of credit has increased significantly. As the volume of the loans has increased substantially over the years, the percentage of loan default increased gradually. This study is kind of analyzing the loan and advance of Janata Bank Limited. It is providing different types of loan term loan, joint venture loan, thrust sector loans which include another fifteen kinds of loans and special kinds of rural development loans, etc.

1.2 Origin of the Report:
This report originates to fulfill the requirement of studying MBA program of Dhaka University. This program has been designed to facilitate the student with basic theoretical and practical knowledge in the job activities in the context of Bangladesh as well as worldwide.

Since the MBA program is an integrated, practical and theoretical method of learning, the student of this program are required to have practical exposure in any kind of business organization to fulfill this program. This report has been prepared on practical orientation.
1.3. Objective of the Report:
There are mainly two objectives behind the preparation of this report- primary objective and secondary objective.

Primary objective
The primary objective of preparing this report is to fulfill the mandatory requirement of the MBA program and to represent the “Credit Management” of Janata Bank Limited.

Secondary objective
To identify the sectors the bank is giving credit and advance.
To have some practical exposure that will be helpful in the practical life.
To gather knowledge about Credit Management (i.e. Loan & Advances)
To co-ordinate between theory and practice and to make a bridge between theoretical and practical knowledge in fulfillment of the internship program.
To know about the banking system.
To identify the formalities maintained by both the bank and the client in processing and receiving deposit.
To define the problems in the core areas / departments of the bank

1.4 Methodology:
This report is based on primary and secondary data. For more clarification and better understanding, I have collected primary data in the form of depth interview and personal observation.
Sources of data/ Information
I have unruffled the information/data from both primary and secondary sources.
Primary sources
Primary sources comprise interviews and conversation with officers and executives of the bank of different divisions and departments.
Secondary sources
Secondary sources of information take account of annual report, general report, project profile, journals, periodicals, bank manual, selected books and other publications.