Internship Report on Credit Management of Bangladesh Commerce Bank Limited

Banking sector plays a significant role in achieving the high economic growth of the country. A Bank is a financial Institution whose main aim is to earn profit through exchange of money and credit instruments. So, the Banking system occupies an important place and plays an important role in a nation’s economy building. Also it plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country. In recent time this sector over the world has been changing a lot due to regulation, technological innovation, globalization etc. Banking sector in Bangladesh is lagging behind in adopting these changes. To thrive well in this changing environment, not only development of appropriate infrastructure is necessary but also infusion of professionalism into banking service is essential. It should be concerned that one can’t be professional unless it would be engaged in real world business.
A professional is a person who is skilled in the theoretical, scientific and practical aspect of an occupation and who performs with a high degree of competence. It develops professional attitude towards banking business. This sort of financial intermediary accepting deposits and granting loans; offers the widest menu of services for different business ventures. These types of institutions are borrowing public money and offering the credit services as well as growing and more innovating services like investment advice, security undertaking and financial planning. Commercial banks have significantly expanded their financial services to the clients and government around the world.

1.1 Background of the Study:
Banking sector plays a significant role in achieving the high economic growth of the country. A Bank is a financial Institution whose main aim is to earn profit through exchange of money and credit instruments. So, the Banking system occupies an important place and plays an important role in a nation’s economy building. Also it plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country. In recent time this sector over the world has been changing a lot due to regulation, technological innovation, globalization etc. Banking sector in Bangladesh is lagging behind in adopting these changes. To thrive well in this changing environment, not only development of appropriate infrastructure is necessary but also infusion of professionalism into banking service is essential. It should be concerned that one can’t be professional unless it would be engaged in real world business. A professional is a person who is skilled in the theoretical, scientific and practical aspect of an occupation and who performs with a high degree of competence. It develops professional attitude towards banking business. This sort of financial intermediary accepting deposits and granting loans; offers the widest menu of services for different business ventures. These types of institutions are borrowing public money and offering the credit services as well as growing and more innovating services like investment advice, security undertaking and financial planning. Commercial banks have significantly expanded their financial services to the clients and government around the world.
Banks are one of the key sectors in contributing the development of economy of the global village. In processing the economic development, country requires banking sector to handle efficiently the capital resources to the proper development agencies. People and the government itself are very much dependent due to service providence of the financial market for the process of economic development to function properly. While making a reasonable amount of profit after meeting the cost of fund, commercial banks are mobilizing their funds from one group to another.


1.2 Objectives of the Study:
The objectives of the study are as follows:
(a) To highlight the overall Loan & Advances picture of BCBL.
(b) To evaluate the performance of Loans & Advances of BCBL.
(c) To assess the impact of Loans & Advances on the overall earnings of BCBL.
(d) To gather knowledge about the functions and transactions of different department of bank branches and cheek the compliance of practice with the theory.
(e) To recommend remedial measures and suggestion to overcome the problem in Loans & Advances activities in BCBL

1.3 Scope:
Bangladesh Commerce Bank Ltd is one of the leading private banks in Bangladesh. It is opened on 16 September 1999. This report covers the organization’s structure, chronological growth and development performance of the commercial banks. The main part covers the Loan and Advances of Bangladesh Commerce Bank Ltd. I had to deal with customers who come to take loan and I also had the opportunity to gather information about:
a. Finding the bridge between academic study and practice in organization.
b. How Banks perform loan giving procedure.
c. What types of documents they maintain to give loan
d. What are the policies to give loan?
e. What are the problems in loan transaction?
f. How banks loan and Advances affect the overall performance of the banks
g. What are the improvements can make difference to other commercial banks.


1.4 Methodology of the Study:
1.4.1 Analytical Tools:
a. Trend Analysis Loans & Advances.
b. Multiple Regression Line.
c. Index Number s’ Time Series Analysis.

1.4.2 Sources Of Data:
Both primary and secondary sources of information have been collected for the purpose of this report.
a. The primary source of information:
1. Oral conversation with the office stuffs.
2. Oral conversation interview with the bank’s client.
3. Exposure on different desk of the bank.
4. File study.
5. Direct personal observations and interviews.
6. Collecting data in comparison to other bank.
b. The secondary source of information:
1. Annual report of Bangladesh Commerce Bank Limited.
2. Periodicals published by the Bangladesh Bank.
3. Various books, articles, compilations etc. reading general banking functions, and credit policies and having training program arranged by BCBL.
Different publications regarding Loans and Advances operation.
1.5 Designing of Sample:
I have made a design for the study and dissertation purpose and selected officers and clients of BCBL of different categories as sample unit.

1.6 Data Analysis:
There are twenty-five branches of BCBL throughout country. Among them twelve branches are in Dhaka Bangladesh Commerce and others are in different districts of the country. The report is based on the primary data, which is collected through an oral interview with the Credit officers and secondary data collected from the annual report. Mainly it was a self-administered questionnaires and survey. Data have been analyzed by using tabular techniques, Figures, ration etc.
1.7 Time Frame of Study:
Whereas, the sample unit is BCBL, so that the time frame is from January 2005 to 2009.
1.8 Limitation of the Study:
The following limitations are apparent in the study:
Time constraint is the first limitation of the study.
Another limitation of this report is Bank’s policy of not disclosing some data and information for obvious reasons, like confidential nature of bank transaction. There is also relevant documents which is unpublished and not to disclose due to confidential nature.

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