Internship Report on Credit Management of Social Islami Bank Ltd

This report contains practical information and observation of Social Islami Bank Ltd of Investment(credit) Department at Nawabpur Branch. The report is on “Credit Management of Social Islami Bank Limited”. This report gives us elaborate information about activities, strategies of operation, process of credit grading, policy, credit mgt of SIBL in terms of repricing gap model, guidelines prescribed for SIBL and management of Credit Banking Division of Social Islami Bank Ltd.
The first Part of this report contains Introduction that deals with origin, objectives, Scope, rationale and limitation of the report, information of Research Methodology of the report.

The second part of the report contains literature review of the report.
At the third part of the report, there is a brief discussion about the financial system of Bangladesh.
The fourth Part of the report contains information about the profile of the Social Islami Bank Ltd.
The fifth Part of the report deals with analysis of credit management of Social Islami Bank Ltd.
The Fifth part of the report deals with the concluding part as well as the recommendation for Social Islami Bank Ltd.

Social Islami Bank Ltd. is making growth faster than before. This bank came out of the problem bank successfully and making profit.
This report contains credit risk management of Social Islami Bank Ltd credit risk is essential for the success of the banks and financial institutions .Risk is an integral part of business and attach due importance of various risks involved in the banking business .Basically credit risk derives from lending to corporate , individuals and other banks or financial institutions.

In this report I have tried to mention credit risk grading process and ways of measuring credit risk grading ,guidelines prescribed by Bangladesh Bank, Guiding Principle of Credit appraisal of SIBL for credit officer.

I have worked in three department of credit of SIBL ,Nawabpur Branch .In this report I have tried my best to make a comprehensive analysis on credit risk management.

1.2 Rationale of the study:
As a student of a faculty of business studies ,it is helpful to gain the practical knowledge about an organization and its overall activities .By doing this kind of activities ,we can enrich our practical knowledge .With the application of acquired knowledge we will be able to develop ourselves and compete globally .So we can say that the rationale of this is comprehensive

1.3 Objective of the report
The study has been undertaken with the following objectives:
To identify and suggest scopes of improvement in credit To analysis the pros and cons of the conventional ideas about credit operation of a Bank.
To have better orientation on credit management activities specially credit policy and practices, credit appraisal, credit-processing steps, credit management, financing in various sector and recovery, loan classification method and practices of Social Islami Bank Limited (SIBL).
To compare the existing credit policy of Social Islami bank Limited with that of best practices guideline given by Bangladesh Bank, the central bank of Bangladesh.
To identify and suggest scopes of improvement in credit management of SIBL.
1.4 Scope of the report
To get idea about the performance of SIBL. The study would focus on the following areas of SIBL. Credit appraisal system of Social Islami Bank Limited. Procedure for different credit facilities. Portfolio (of Loan or advances) management of SIBL.
1.5 Methodology of the study
Data collection
Both the primary and secondary form of information is used to make the report more meaningful and presentable. The details of these sources are given below:
Primary sources of data:
Primary data sources are scheduled survey, informal discussion with professionals and observation while working in different desks.
Secondary sources of data:
The secondary data sources are annual reports, manuals, and brochures of Social Islami Bank limited and different publications of Bangladesh Bank. To identify the implementation, supervision, monitoring and repayment practice- interview with the employee and extensive study of the existing file was and practical case observation were done.

Data Analysis Techniques:
Ø Classifying, Appraising & Evaluating of investment (Credit) of SIBL
Ø Repricing Gap Model
Statement of Affairs
Ø Bank’s Memorandum of Association
Ø File Study
Ø Brochures & Leaflets
This part highlights how the research has been conducted. Some fundamental steps have been described for collecting, analyzing and designing my report.
Interpretation of data:
For more clarification of statistical data, I have used Microsoft excel. By Microsoft Excel I have shown some charts of capital, deposit \, Investment, foreign exchange business. By this chart everyone will be able to understand position of the bank.


Usage of computer software:
For the completion of this report , I have used Micro Soft Word and for statistical interpretation of data , I have used Micro Soft Excel. These computer software helps me to complete this report in a better manner.

1.6 Limitations of the Study
Although it has been tried on the level best to make this report based on facts and complete information available, there are some limitations that are inevitable. They are following:
The main obstacle while preparing this report was time. As the tenure of the internship program was only three months, it was not possible to highlight everything deeply.
Confidentiality of information was another barrier that hindered the study.
Sufficient records, publications were not available as per my requirement.
Lack of experiences has also acted as constraints in the way of meticulous exploration on the topic.
Very limited published material is available regarding a bank.
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