Internship Report On Credit Management of Dhaka Bank Limited

The main purpose of the report becomes very clear from the topic of the report. The report discusses about the different credit facilities, approval process, monitoring and performance. The main objectives of the report are identifying the credit approval and monitoring and their overall performance in the last few years. This report forces on the literatures behind banking credit. It includes Credit services of DBL, different loan categories, and credit analysis, loan review and handling default loans. It also describes in detail about the procedure of sanctioning credit, loan documentation and execution, stamping witness and other legal formalities. It also describes the issuance of different bank guarantees. Findings and analysis of the information are in the last Part of the report. It includes outstanding, recovery, and classified loan ratios. Difference between the outstanding and the classified loans in different sectors over the last four years are also analyzed. It also includes the summery of findings. Findings of the report say about the prior and neglected sectors of the credit facilities. It also contains the outstanding, recovery and classified loan status in different sectors over the past few years. The last part ends with competitive analysis, SWOT Analysis, recommendations and conclusions.
Dhaka Bank Limited is one of the leading Private Sector Banks in Bangladesh offering full range of Personal, Corporate, International Trade, Foreign Exchange, Lease Finance and Capital Market Services. Dhaka Bank Limited is the preferred choice in Banking for Friendly and Personalized Services, cutting edge Technology, tailored solutions for Business needs, Global reach in Trade and Commerce and high yield on Investments, assuring Excellence in Banking Services.

1.2 Background of the Report:
After my completion of eight semesters in B.B.A (Bachelor of Business Administration) from Department of Accounting & Information Systems from The university of Dhaka, I have been placed in Dhaka Bank Limited for my internship program which is a degree requirement for the BBA students. The primary goal of internship is to provide the job revelation and an opportunity to implement theoretical knowledge in real life situation with the changing eve of banking industry. I have decided to prepare my report on the topic of Credit Management of Dhaka Bank Limited. This report has been prepared on my practical experiences in Dhaka Bank Limited, B.B. Road Branch, Narayangonj.

1.3 Objectives of the Study:
The main objective of the study is to analyse the Credit Management of Dhaka Bank Ltd. and to have an overall idea on how it operates in the competitive markets to comply with the customer’s satisfaction and to retain them. So the main objectives of this report are as followes-

●To assess the credit approval process, securities of loan and monitoring process of Dhaka Bank Limited.
●To identify the lending activities at DBL
● To identify the recovery rates of the loans in different sectors in last 4 years and to have a comparison among them.

There are some other objectives of this report. Such as-
●To identify the mission and vision of DBL at BB road branch.
●To identify the quality of services of DBL.
●To identify the requirements and client eligibility of DBL.
●To identify the strengths, weaknesses, opportunities, threats of DBL.

1.4 Scope of the study:

The scope of this report is the Head office and B.B. Road Branch of DBL and their operations throughout the country. The report also touches the banking industry and its trends and competitors of DBL.

1.5 Methodology of study:
The information, required to prepare the report, has been collected from primary as well as secondary sources. Some data were also collected through other sources. I may show the sources of data as follows:

1.6 Data Collection:
To prepare the Report, data and information have been collected from two sources. Those are:
o Primary sources
o Secondary sources

1.6.1 Primary Sources
For general concept development about the bank short interviews and discussion session were taken as primary sources. Questions are asked to the internal employees of DBL about the general banking activities of Dhaka Bank Ltd.

1.6.2 Secondary Sources
I used the following sources for information:
• Dhaka Bank Annual Report 2010.
• Website of DBL.
•Regular circulars of DBL.
• Bangladesh Bank Credit Policy.
• Office files.
• Working papers.
•Articles published on magazines and newspapers.

1.7 Limitations:
Some limitations of the report are:

• Time span – 6 weeks time duration was not sufficient for preparing a report of this magnitude.
• Less time to work on as I came back from office at 8 pm.
• Lack of electricity – affected my work as well as my morale to do work.
• Some essential data could not be gathered because of confidentiality concerns.
• Hesitance to share all types of information on the part of the Bank.
• Lack of availability of sufficient data.
1.8 Slogan of DBL:
The slogan of DBL is “Excellence in Banking”.

1.9 Values of DBL:
• Customer Focus
• Integrity
• Teamwork
• Respect to the Individual
• Quality
• Responsible Citizenship

1.10 Mission of DBL:
The mission of DBL is to be the premier financial institution in the country providing high quality products and services backed by latest technology and a team of highly motivated personnel to deliver Excellence in Banking.
1.11 Vision of DBL:
At Dhaka Bank, we draw our inspiration from the distant stars. Our team is committed to assure a standard that makes every banking transaction a pleasurable experience. Our endeavor is to offer you razor sharp sparkle through accuracy, reliability, timely delivery, cutting edge technology, and tailored solution for business needs, global reach in trade and commerce and high yield on your investmentsOur people, products and processes are aligned to meet the demand of our discerning customers. Our goal is to achieve a distinct foresight. Our prime objective is to deliver a true reflection of our vision- Excellence in Banking.
1.12 Ethical Principles:

• To be compliant to country’s laws and regulations.
• To reject bribery and corruption.
• To avoid compromised gifts and entertainment.
• To speak up if any actual, planned or potential behavior that may breach any laws and regulation is suspected.
• To resolve customer complaints quickly and fairly.
• To maintain confidentiality and fidelity to the customer.
• To treat all colleagues with fairness and respect; work with highly motivated team sprit and fellowship bondage.

1.13 Board of Directors :
The Board of Directors delegates power to the Executive Committee for approving credit facilities to the client as recommended by the branch and Management Credit Committee. The Board monitors the activity of the Executive Committee and the Management of The Bank. The Board of Directors sits in meeting once in every month. The Board is the highest authority to approve any credit facilities for which power is not delegated.