Internship Report on Consumer Credit Schemes of National Bank Limited

Banking sector is expanding its hand in different financial events everyday. Banking customers have also changed in recent years. Customers are more knowledgeable, sophisticated, and assertive. They demand higher levels of customer service, are less loyal, and more inclined to switch to a competitor. Modern customers require flexibility in hours of operation, greater convenience, customization, transparency, accessibility, and control. Competition to attract new customers is fierce. Customer defection rates are higher than ever because of increased market competition. With so many different financial institutions to choose from, consumers can now demand better quality services and more customized products from their banks. In this consumer economy, attracting and crucially keeping customers for the long term is a key challenge for all businesses. At the same time, the banking process is becoming faster, easier, and the banking arena is becoming wider. As the demand for better service increases day by day, they are coming with different innovative ideas and products. In order to survive in the competitive field of the banking sector, all banking organizations are looking for better service opportunities to provide their fellow clients. 

National Bank is one of the pioneers of first generation private commercial bank incorporated in 1983.Meeting the target of the customers the bank is launching new product evertime.In this report I try to make a comparative analysis of consumer credit scheme of NBL along with other commercial bank. I also try to describe the credit management policy of National Bank. The products covered by the NBL are education loan, household loan, travel loan, car loan etc.NBL can offer more attractive services to the employees. The charges are consistent with the current market situation. Here I have also found that the recovery of loan is satisfactory by the NBL.There are specific rules & regulation for credit sanctioning implemented by Bangladesh Bank. National bank is trying to follow the specific rules set by the Bangladesh Bank. In line with the organizational pattern & the guidelines of Bangladesh Bank, a risk management unit has been formed to idetify, measure & monitor to safeguard & mitigate different risks. Besides ALCO,MANCOM & Credit committee of the banks are also functioning in the same line from other perspective. In this report i have also make a SWOT analysis. I try to find out the strength, opportunities of National Bank Ltd.At last i have made some recommendation. We know promotional activities are very much important in case of any business’s I think if NBL increases its advertising expenses it will attract more customer .There are some other specific factors which should be taken into consideration By National Bank. Despite some shortcomings NBL achieved strong growth in terms of capital. I hope the bank will prosper in future with its decent activities.

To introduce skilled Banker, only theoretical knowledge in the field of banking studies is not sufficient. An academic course of the study has a great value when it has practical application in real life situation. Bank lending is important for the economy in the sense that it can simultaneously finance all of the sub-sectors of financial arena, which comprises agricultural, commercial and industrial activities of a nation. Through deposit mobilization and providing credit facilities for different business organizations, the banking sectors are playing a vital role in the economy of the country. The success of a bank depends up to how effectively the credit management recovers the funds.

This internship report was assigned as a part of the academic requirement in order to complete my ‘Bachelor of Business Administration’ program under the ‘Department of Banking’ at Dhaka University. To support my internship report, I worked as an intern in ‘National Bank Limited’ (Elephant Road Branch) with tenure of three months. And I consigned to help the officers of the Loan Department of National Bank Ltd, Elephant Road Branch as part of the fulfillment of Internship requirement.

The purposes of this report cognates the internship purpose. The internship objective was to gather practical knowledge and experiencing the corporate working environment with the close approximation to the business firm and the experts who are leading and making strategic decisions to enhance the growth of a financial institution. To this regard, this report is contemplating the knowledge and experience accumulated from internship program. With the kind advice of both the Organization and Internship Supervisor this report comprises of an organization part and a project part.

The objective of the report is to provide a general description of the traditional banking and an exposure of the banking environment of Bangladesh. It also provides an exposure of practices of different banking activities of NBL, LOCAL OFFICE. The main objective is to make a comparison between the products of Consumer Credit Scheme offered by National Bank Limited and the products of Consumer Credit Scheme offered by other Banks. The specific objectives are stated in the below: 
To determine the origin of Consumer Credit Scheme program in Bangladesh and in National Bank Limited. 
To find out the goods and services offered in the industry under CCS program. 
To identify the important criteria required for the attainment of CCS loan. 
To know the details about the CCS program of National Bank Limited. 
To identify the judgment process of National Bank to execute Consumer Credit Scheme loan. 
To analyze the CCS loan of National Bank and other Banks with respect to loan limit, interest rate, down payment, application fee and other charges. 
To identify the innovative products offered by different Banks under consumer loan.