Internship Report On Accounting Policy and Credit Management of Jamuna Bank Limited

Jamuna Bank Limited (JBL) is one of the leading private commercial banks in Bangladesh providing a complete range of banking services to its clients. The main objective of this report is to examine the Accounting Policy and Credit Management System of Jamuna Bank Limited.

The financial statements of the Bank are prepared on a going concern basis under historical cost convention. The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as of Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS). While preparing the financial statements, Jamuna Bank applied most of the BAS and BFRS as applicable.
Disclosure requirements relating to financial statements of banks and similar institutions are contained in IAS-30. Since banks operation differ in many material respects from other commercial enterprises and liquidity and solvency is of paramount importance, their financial reporting inevitably will be somewhat specialized in nature.

One of the two primary functions of a commercial bank is to extend credit to the deficit economic unit that comprises borrowers of all types. Bank credit is a catalyst of economic development.

Loans and advances in 2010 was BDT 4973.48 Crore which is 54.04% increase than 2009 which was BDT 3228.77 Crore. The bank has a strong credit recovery team. The bank realised BDT 10.50 crore against the written-off liability through its vigorous recovery activities. The percentage of classfied loan has been reduced to 1.83% in 2010 from 2.20% in 2009. Provision for classied loan in 2010 is also reduced to BDT 453.76m from BDT 465.64m in 2009.

JBL’s Risk Management Unit is continuously working on identifying, assessing, monotoring and controlling risks associated with different banking transactions. JBL do not encourage making quick profit assuming risk in excess of JBL’s economic capital, ratgher JBL believe in sustainable profit based on solid footings, which will undoubtedly strengthen the bank’s position in the long run. 
by Md Foyzul Haque