Internship Report on An Overview of Credit of IFIC Bank Limited

This report is broadly categorized in six different chapters. At First chapter there is introduction where I describe the scope and objectives, methodology and limitations of the report. The main objective of the report is to present the overview of credit for the last 6 years.
Second chapter describes the theoretical development of credit where I discuss about credit, collateral, Types of credit, evaluation of loan request, lending process etc. In the third chapter I describe about administration of credit of IFIC Bank Ltd. This chapter includes lending guidelines, credit assessment, credit risk grading, approval process, disbursement and credit recovery of the bank.

Forth chapter is the empirical analysis. This chapter includes loans and advances portfolios, ratio analysis and trend analysis by using 6 years Annual Report of IFIC Bank Limited.
In chapter five I have given the summary and conclusion based on the report. I have written the summary on loan portfolio, ratio analysis and trend analysis.
Sixth chapter is for references that I have used to prepare the report. Mainly I have used the text book “Commercial Banking by Benton E. Gup & James W. Kolari (3rd Edition)”, IFIC Bank Credit Risk Management Policy Guidelines, Annual Report of IFIC Bank Limited from 2005 to 2010.
A bank is a financial institution that serves as a financial intermediary in the economy. Banking system aggregates a high number of low values deposits to fund enterprises with a smaller number of high value loans. This intermediation through a well functioning bank helps to achieve economic benefits for the depositors, the borrowers and above all – the economy. The bank provides depositors higher return, lower risk and greater liquidity of their funds. The bank ensure credit worthy borrowers availability of fund and thus allow to enterprise grow and expand. The economic growth is maximized as the bank channels the country’s scarce financial resources into those opportunities with maximum return. Thus profitable enterprises receive funding, grow and expand. On the other hand loss making enterprises are refused funding and allowed to go out of the business- thus saving the economy from drainage of resources.

The bank must allocate loans effectively for achieving some board objectives of the economy and the prerequisites are to identify reliably those enterprises that can repay their loans and allows loan to those enterprises likely to yield high return and deny loan to those likely to yield low or negative returns.
by Rajib Datta