Internship Report
on
“Credit Disbursement and Recovery Performance of Janata Bank
Limited”
Supervised by:
Mr. Md. Parvez Uddin
Assistant Professor
Department of Finance
Bangladesh University of Business & Technology (BUBT)
Submitted by:
Md. Saiful Islam
ID: 14151101329
Intake: 35th
Program: BBA
Department of Finance
Bangladesh University of Business & Technology (BUBT)
Bangladesh University of Business & Technology (BUBT)
Date of Submission: July 08, 2018
LETTER OF TRANSMITTAL
July 08, 2018
Md. Parvez Uddin
Assistant Professor
Department of Finance
Bangladesh University of Business & Technology (BUBT)
Subject: Submission of internship report on “Credit Disbursement and Recovery
Performance of Janata Bank Limited”
Dear Sir,
It is my great pleasure to present the internship report on “Credit Disbursement and Recovery
Performance of Janata Bank Limited” which was assigned to me as a partial requirement for
the completion of my BBA program. Throughout the study, I have tried with the best of my
capacity to accommodate as much information and relevant issues as possible and tried to
follow the instruction as you have suggested. I sincerely believe that it will satisfy your
requirements. I however sincerely believe that this report will serve the purpose of my
internship program.
If you have any further enquiry concerning any information, I am ready to explain anything
to you if you feel necessary.
Sincerely yours,
……………………………………….
Md. Saiful Islam
ID: 14151101329
Program: BBA
Intake: 35th
Department of Finance
Bangladesh University of Business & Technology (BUBT)
STUDENT’S DECLARATION
I, Md. Saiful Islam, ID: 14151101329, a student of BBA program, Bangladesh University of
Business & Technology (BUBT), hereby declare that internship report titled “Credit
Disbursement and Recovery Performance of Janata Bank Limited”is prepared after the
completion of my internship at Janata Bank Limited, Mirpur-10 Branch under the intensive
supervision and guidance of Md. Parvez Uddin, Assistant Professor, Department of Finance,
Bangladesh University of Business & Technology (BUBT).
I also declare that the internship report is prepared for academic purpose only. This report is
not submitted by others.
……………………………………..
Md. Saiful Islam
ID: 14151101329
Program: BBA
Intake: 35th
Department of Finance
Bangladesh University of Business & Technology (BUBT)
CERTIFICATE OF SUPERVISOR
This is to certify that Md. Saiful Islam, ID: 14151101329, student of BBA program,
Department of Finance, Bangladesh University of Business & Technology (BUBT), has
completed his internship program and submitted the report on “Credit Disbursement and
Recovery Performance of Janata Bank Limited” for the award of the degree of Bachelor of
Business Administration (BBA), Major in Finance, successfully under my supervision.
To the best of my knowledge and as per his declaration the report is an authentic work on the
issue and has not been submitted to anywhere for awarding any degree. He is permitted to
submit the Internship Report and I wish his best success & prosperity.
……………………………
Md. Parvez Uddin
Assistant Professor
Department of Finance
Bangladesh University of Business & Technology, (BUBT)
ACKNOWLEDGEMENT
At first I want to express my gratitude to Almighty Allah for giving me the strength and the
composure to finish the task within the scheduled time. Then I am very grateful to the “Janata
Bank Limited” for providing me the opportunity to complete my internship program.
I received cordial cooperation from the officers and members of staffs of “Janata Bank
Limited” Mirpur 10 Branch. I want to express my cordial gratitude to them for their
cooperation without which it would not be possible to complete the report.
I would like to express my deep sense of gratitude & sincere appreciation to my internship
supervisor Mr. Md. Parvez Uddin, Assistant Professor, Department of Finance, Bangladesh
University of Business & Technology (BUBT), for his continuous support & guidance during
the practical orientation period. His suggestions and comments were really a great source of
spirit to make the report a good one.
I would like to express my heartiest appreciation to my honorable Dean, Faculty of Business,
Prof. Dr. Syed Masud Husain for his support and guidance and valuable suggestions to
prepare this report.
I most sincerely express my thanks and gratitude to Syed Jamal Hossain, Manager (First
AGM) of Mirpur 10Branch,Janata Bank Limited for giving me the opportunity to prepare this
report. I shall ever remember the affectionate care rendered by him and for the constant
guidance he provided to me for completing the report. He has been extremely kind to lend me
his valuable time whenever I needed.
I would like to express my thanks to all the people that were involved both directly and
indirectly to prepare of this report. I apologize to the people whose names that I have not
mentioned and their contribution is highly appreciated by me. I thank them all from the core
of my heart.
Abstract
The main focus of the report is to analyze the credit performance of Janata Bank Limited.
The study has been conducted mainly based on the secondary data. The data are collected for
the period of 2013 to 2017. The study focuses on different loan and advances of Janata Bank
Limited, division wise loan and advances, sector wise loan and advances, non-performing
loan and advances of Janata Bank Limited. Loan & advances gradually increased over the
year except for the year 2016. Growth rate was fluctuating over the years. Janata Bank
Limited provided a major portion of loan and advances in Dhaka division and Chittagong
division. Janata Bank Limited disbursed a major portion of loans and advances industrial
credit, export credit, import credit, rural credit. The classified loan and advances of Janata
Bank Ltd. increased over the year. Bad/Loss loan amount was too much high in relative to
other categories of classified loan and advances. Credit to deposit ratio fluctuated over the
years. Janata Bank Ltd. should try to increase this ratio by providing loans to diversified
sectors. Janata Bank Ltd. should distribute more loans and advances in other divisions other
than Dhaka division. Janata Bank Ltd. should try to provide loans to creditworthy borrowers
by following the proper lending principles and developing proper monitoring & recovery
system.
Table of Contents
Particulars Page No
Chapter - 1: Introduction
1.1 Background of the Report 02
1.2 Significance of the Report 02
1.3 Scope of the Report 02
1.4 Objectives of the Report 03
1.5 Methodology of the Report 03
1.6 Limitations of Report 04
Chapter - 2: Company Overview
2.1 Historical Background 06
2.2 Mission 06
2.3 Vision 06
2.4 Objectives 06
2.5 Business Philosophy 07
2.6 Core values 07
2.7 Core strengths 08
2.8 Core competencies 08
2.9 Functions 08
2.10 Strategy 09
2.11 Management structure 10
2.12 Services offered 11
Chapter - 3: Theoretical Aspects
3.1 Definition of Credit & its Objectives 14
3.2 Credit management & its Objectives 14
3.3 Credit risk Management, its Objectives & Importance 15
3.4 Classification of loan 16
3.4.1 Unclassified loan 16
3.4.2 Classified loan 16
Chapter - 4: Credit Management of Janata Bank Ltd.
4.1 Credit Policy of Janata Bank Ltd. 19
4.2 Credit Principles of Janata Bank Ltd. 19
4.3 General Procedure of Sanctioning Loan 20
4.4 Assessing Creditworthiness of Borrowers 27
4.5 Principles of Sound Lending 27
4.6 Credit Monitoring 28
4.7 Early Alert Process 29
4.8 Credit Recovery 29
Chapter - 5: Credit Performance Analysis of JanataBankLtd.
5.1 Distribution of Total Loans & Advances 32
5.2 Division Wise Credit Disbursement 33
5.3 Trend of Industry wise Credit Disbursement 34
5.4 Classified of Loans and Advances 35
5.5 Category wise Classified Loan 36
5.5.1 Sub-Standard as a Percentage of Classified Loan and Advances 36
5.5.2 Doubtful as a Percentage of Classified Loan and Advances 37
5.5.3 Bad/Loss as a Percentage of Total Classified Loan and Advances 38
5.6 Provision for Loans for Advances 39
5.7 Credit to Deposit Ratio 40
Chapter - 6: Comparative Analysis
6.1 Analysis of Growth Rate of Loans & Advances 42
6.2 Analysis of Non-Performing Loan 43
6.3 Analysis of Credit to Deposit Ratio 44
Chapter -7: Findings, Recommendations & Conclusion
7.1 Major Findings 46
7.2 Recommendations 47
7.3 Conclusion 48
REFFERENCES 49
APPENDIX 50
