DEPOSIT COLLECTION AND LOAN DISBURSEMENT PROCEDURES

OF

PUBALI BANK LIMITED.

By

Abdullah-Al-Noman

ID: BBA-15054

Supervisor

Md. Al Amin

Lecturer

Department of Business Administration

Mawlana Bhashani Science and Technology University

BBA Program

Department Of Business Administration

Faculty of Business Studies

Mawlana Bhashani Science and Technology University Santosh, Tangail.

December, 2020
LETTER OF TRANSMITTAL
Date: 14th September, 2019

Md. Al Amin

Lecturer

Department of Business Administration

Mawlana Bhashani Science and Technology University

Subject: Submission of Internship Report “Deposit Collection and Loan Disbursement Procedure
of at Bangladesh Krishi Bank”

Honorable Sir

With due respect I have the honor to place my internship Report on “Deposit Collection and
Loan Disbursement Procedures of at Bangladesh Krishi Bank” for the partial fulfillment of the
requirement of completion of my BBA program. The report is prepared under your supervision
and guidance. With a view to having pragmatic exposure over practical arena, I was assigned this
topic.

To get through this report based on my cognition and analysis I exerted my full effort and zeal. I
have worked hard in preparing this report and tried to make the report clear and comprehensive
with the constraints. I sincerely believe that this report will fulfill the purpose.

Thanking you for your kind supervision.

Sincerely yours,

………………………..

Name: Abdullah-Al-Noman

ID: BBA-15054

BBA 6Th Batch, Session: 2014-15/2015-16

Stream: Accounting & Information Systems

Department Of Business Administration

Faculty of Business Studies

Mawlana Bhashani Science and Technology University.

Certificate of Supervisor

This to certify that the report entitled, “Deposit Collection and loan Disbursement Procedures
of Bangladesh Krishi Bank”. Submitted by Abdullah-Al-Noman Student of Business
Administration (Major in Accounting and Information Systems), Mawlana Bhasani Science and
Technology University, Santosh, Tangail is the candidate’s own achievement.

I also ensure that, I have gone through the draft copy of the report thoroughly and found it
satisfactory for submission to the department of Business Administration, Mawlana Bhasani
Science and Technology University, Santosh, Tangail, Bangladesh.

------------------------------------------

Md. Al Amin

Lecturer

Department Of Business Administration

Faculty of Business Studies

Mawlana Bhashani Science and Technology University, Santosh, Tangail

 Declaration

I do hereby solemnly declare that the work presented in this internship report titled
“Deposit Collection and Loan Disbursement Procedures of Bangladesh Krishi
Bank” is an original work done by me under the supervision Md. Al Amin,
Lecturer Department of Business Administration, Mawlana Bhashani Science and
Technology University. No part of this report has been previously submitted to any
other university/College/ Institution/ Organization for any academic certificate/
degree/diploma/ qualification.

The work I have presented does not breach any existing copyright and no portion
of this report copied from any work earlier for a degree or otherwise.

I further undertake to indemnify the department against any loss or damage arising
from breach of the forgoing obligation, if any.

--------------------------------------

Name: Abdullah-Al-Noman

ID: BBA-15054

BBA 6Th Batch, Session: 2014-15/2015-16

Stream: Accounting & Information Systems

Department Of Business Administration

Faculty of Business Studies

Mawlana Bhashani Science and Technology University.

 Acknowledgement

It is Almighty Allah who enables me to successfully complete the Internship

Report on “Deposit Collection and Loan Disbursement Procedures of Bangladesh
Krishi Bank. I would like to express my gratitude to the Department of Business
Administration of Mawlana Bhashani Science and Technology University,
Santosh, Tangail, Bangladesh for arranging such a practical field- related study.

I also express my sincere gratitude and indebtedness to my supervisor, my

honorable teacher Md. Al Amin, Lecturer, Department of Business Administration,
Mawlana Bhashani Science and Technology University,Santosh, Tangail. I am
deeply indebted to his while hearted supervision to me during the internship
period. During preparation of this report, I got many creative and thoughtful
suggestions and advices on a continuing basis.

For cordial behavior and better suggestions in preparing the report, thanks also
goes to Senior Officer and Manager of the Bangladesh Krishi Bank, Kashigonj
Bazar Branch, Mymensingh, who gave the opportunity to work in his reputed
organization as an internee.

I would like to pass thanks from the core of my heart to Mr. Ali Mortoza(Branch
Manager), Mr. Ashaduzzaman Bhuiya(Senior Officer, GB In Charge), Mr. Md.
Ashraful Islam(Officer Clearing House with General Banking) and Mr. Md. Kamal
Hossain(Junior Officer and Support Eng.) of Bangladesh Krishi Bank, Kashigonj
Bazar Branch for their unconditional support, which facilitated me to complete my
report successfully.

All of them guided me and without their friendly co-operation, this type of report
preparation might be impossible. I would like to thank all the employees of BKB
who helped me by providing so much information within the limited time.

At last, I would like to give thanks to HR Department of Bangladesh Krishi Bank

who gave me the chance in their bank as internee.
Table of Contents
SL. No Particular Page No.
Executive Summery
Chapter One – Introduction
1 1.1 Background of the study
1.2 Origin of the Report
 1.3 Scope of the Report
1.4 Rationale of the Study
1.5 Problem Statement
1.6 Objective of the Report
1.7 Limitations of the Report
Chapter Two – Methodology of the Report
2 2.1 Methodology
2.2 Collection of Data
2.3 Sources of Data
2.4 Time Frame
2.4 Data Processing & Analysis
Chapter Three – Organizational Profile
3 3.1 Historical Background of BKB
3.2 Vision Mission of Bangladesh Krishi Bank
3.3 Objectives of BKB
3.4 Corporate Strategy of BKB
3.5 Nature of the Business
3.6 Organizational Structure of BKB
3.7 BKB at a Glance
3.8 Managerial Hierarchy
3.9 Organogram of the Employees in BKB
3.10 Board of Directors
Chapter Four- Deposit Collection & Loan Disbursement Procedures of BKB
4 4.1 Deposit Section
4.1.1 Deposit Account of BKB
4.2 Deposit Collection Procedure
4.2.1 Account Opening Requirement/ Condition
4.3.1 Deposit Schemes of BKB
4.3.2 Interest Rates for Deposit Schemes
4.4.1 Loan
4.4.2 Types of Loan of BKB
4.5.1 Consumers Loan Scheme of BKB
4.5.2 Interest rate for loan product
4.6 Loan Disbursement Procedure
Chapter Five – Deposit and Loan Analysis & Findings
5 5.1 Target Profit VS Actual Profit
5.2 Total Deposit and Its Growth Rate
5.3 Target Loan VS Actual Loan
5.4 Total Loan and Its Growth Rate
5.5 Total Loan against Total Deposit
5.6 Recovery of Total Loan
5.7 Profit & Loss of BKB
5.8 Findings of the Study
Chapter Six– Conclusion and Recommendations
6 6.1 Conclusion
6.2 Recommendations
Bibliography
List of Table

Table No Name of the table Page No

Table 2.1 Time Frame 15

Table 3.1 PBL at a Glance 19

Table 4.1 Interest Rates for Deposit Schemes 27

Table 4.2 Interest rate for loan for Loan Products 30-32

Table 5.1 Target Profit VS Actual Profit 38

Table 5.2 Total Deposit and Its Growth Rate 40

Table 5.3 Target Loan VS Actual Loan 42

Table 5.4 Total Loan and Its Growth Rate 44

Table 5.5 Total Loan against Total Deposit 46

Table 5.6 Recovery of Total Loan 47

Table 5.7 Profit & Loss of PBL 48

List of Table

Table No Name of the table Page No

Table 2.1 Time Frame 15

Table 3.1 PBL at a Glance 19

Table 4.1 Interest Rates for Deposit Schemes 27

Table 4.2 Interest rate for loan for Loan Products 30-32
Table 5.1 Target Profit VS Actual Profit 38

Table 5.2 Total Deposit and Its Growth Rate 40

Table 5.3 Target Loan VS Actual Loan 42

Table 5.4 Total Loan and Its Growth Rate 44

Table 5.5 Total Loan against Total Deposit 46

Table 5.6 Recovery of Total Loan 47

Table 5.7 Profit & Loss of PBL 48

List if Figure

Figure No Name of the Figure Page No

Figure 3.1 Managerial Hierarchy of PBL 20
Figure 3.2 Organogram of the Employees in PBL 21
Figure 4.1 Process Flow for Loan Disbursement 29
Figure 5.1 Target Deposit VS Actual Deposit 39
Figure 5.2 Deposit Growth Rate 41
Figure 5.3 Target Loan VS Actual Loan 43
Figure 5.4 Total Loan and Its Growth Rate 45
Figure 5.5 Total Loan against Total Deposit 46
Figure 5.6 Recovery of Total Loan 48
Figure 5.7 Profit of PBL 49

List of abbreviations

BKB Bangladesh Krishi Bank

BB Bangladesh Bank.
BCC Branch Credit Committee.

BL Bill of Landing.
CC Cash Credit.

C&F Credit and Fording.

CCS Consumer Credit Scheme.

CIB Credit Information Bureau.

CRM Credit Risk Management.

CRG Credit Risk Grading.

IBCC Inter Branch Credit Committee.

IBP Inland Bill Purchase.

ID International Division.

LTR Letter of Transmittal.

MMP Model Marketing plan.

SBL Small Business Loan.

SME Small Medium Enterprise.

TIN Tax Identification Number.

KYC Know Your Customer

AOD Asset Operation Division

Chapter One

Introduction
1.1 Background of the study
Generally Bank is the financial institution that deals with money. There are different types of
bank like commercial bank, investment bank, international bank and Islamic etc. Day by day
banking sector is modernizing. The banking process is becoming faster, easier and wider at the
same time. To survive in the competitive field, banking sector’s organizations are looking for
better service opportunities to provide better service to their clients. So to have some idea on
the bank and banking procedure is becoming important for every person.
Theoretical knowledge works perfectly with practical knowledge. As a student of BBA program
we have to gather practical knowledge and skills to meet the future competition. Without
practical knowledge, theory can never be effective. Recognizing the importance of practical
experience, three months practical work experience is one of the most important parts of four
year BBA program. As practical work experience is integral part of BBA program requirement, I
have worked as an intern at Bangladesh Krishi Bank,Kashigonj Bazar
Branch,Tarakanda,Mymensingh. By practical work experience in a bank for three months, it
would be a great opportunity where student should learn practical knowledge and experience
on the various function of banking business. The report is prepared on the basis of three
months practical experience at Bangladesh Krishi Bank,Kashigonj Bazar
Branch,Tarakanda,Mymensingh that really helps a lot to learn about practical situation of a
financial institution and application of theoretical knowledge into practical and realistic work
environment. After discussion and I started to work on a project titled “Deposit collection and
Loan disbursement procedures of Bngladesh Krishi Bank”. The report covers the Deposit
collection and Loan disbursement procedure of Bangladesh Krishi Bank. Different credit
facilities, approval process, monitoring and performance are discussed by this report. Finding
and analyzing the credit facilities, approval, monitoring collection and recovery process of are
the purpose of this study. The performance of the bank in recent years will be also included. It
also helpful to find out different credit facilities that Bangladesh Krishi Bank is providing to their
customers. For the academic requirement of Faculty of Business Administration, I have been
assigned to do my Internship program at at Bangladesh Krishi Bank,Kashigonj Bazar
Branch,Tarakanda,Mymensingh. Internal supervisor, Md. Al Amin, Lecturer, Department of
Business Administration, Mawlana Bhashani Science and Technology University has assigned
me to conduct the report on the topic of “Deposit collection and Loan disbursement procedure
of Bangladesh Krishi Bank”.

1.2Origin of the Report

To complete Graduation for BBA, internship Program is mandatory for every student. There are
various purposes of the internship Program. It will give the students opportunity to develop
their skill in the application of theory to practical work situation. It will provide students with an
in-depth knowledge of the formal functional activities of a participating organization. It will
increase a student’s sense of responsibility. It will also provide student the opportunity to
develop attitudes conducive to effective interpersonal relationships. It also helps the students
to assess their career on chosen sector.
For that I got the opportunity to do my internship at at Bangladesh Krishi Bank,Kashigonj Bazar
Branch,Tarakanda,Mymensingh. This report is a project on specific process which is “Deposit
Collection and Loan Disbursement Procedures of Bangladesh Krishi Bank ”. The Report also
includes an overview of Bangladesh Krishi Bank.

1.3 Scope of the Study

Bangladesh Krishi Bank is the specialized bank in Bangladesh. The scope of the study is limited
to the Kashigonj Bazar Branch only. The scope of the study includes the organizational
structure, background and objective, functional, departmental and business performance of
BKB as a whole and the main part covers deposit, loan and advance of Bangladesh Krishi
Bank,Kashigonj Bazar Branch,Mymensingh.

1.4 Rationale of the Study

Deposit is the source of loanable fund and loan is the major income source of a bank. A bank’s
profitability depends on efficient deposit and loan management. Because loan recovery has a
strong influence on income. So deposit collection and loan disbursement procedures are
important for a bank.

1.5 Problem Statement

Bank collects deposit and pays interest to depositors. Bank also lends this deposited fund to the
borrower and receives interest. If interest received is higher than the interest payment, bank
will earn income. In 2016 to 2018 loan recovery was 100%, 2018 and 2020 was 99%.
The main concern of this study is to control their default loan, what tools or techniques they
use to handle their default loan and to what extent their performance can be affected by
deposit collection and loan disbursement procedure.

1.6 Objective of the Study

General Objective:
The main objective of the study is to analyze deposit collection and loan disbursement
procedures of Bangladesh Krishi Bank,Kashigonj Bazar Branch,Tarakanda,Mymensingh.
Specific Objectives:
The specific objectives of this report are:
 1. To learn about the deposit collection process by Bangladesh Krishi Bank,Kashigonj Bazar
Branch,Tarakanda,Mymensingh.
2. To learn about the loan disbursement process by BKB,Kashigonj Bazar
Branch,Tarakanda,Mymensingh.
3. To evaluate the performance of BKB(Kahigonj Bazar Branch)based on deposit collection
& loan disbursement aspect.

1.7 Limitations of the Report

To complete the study, I have faced the problems that are given below that may be terms as
the limitation or shortcoming of the study-
 Bank policy was not disclosing some data and information for various reasons.
 The department people always remain busy due to lack of supporting employees so
they could not dedicate their full efforts
 Because of the limitation of information some assumption was made. So there may be
some personal mistake in this report.
 The annual report is the main secondary source of the information but this information
was not enough to complete the report and it was not identified clear idea about this
bank.

CHAPTER TWO

Methodology of the Report

2.1 Methodology
To conduct the study a systematic procedure from selection of the topic to preparation of the
final report is required. To perform the study, the data sources have to be identified and
collected, to be classified, analyzed, interpreted and presented in a systematic manner and key
points were to be found out. The overall process of methodology has been given as below.

2.2 Collection of Data

Both primary and secondary data have been used to carry on this study. Primary data have
been collected through direct and face to face interview of the different personnel of the
Bangladesh Krishi Bank of Kashigonj Bazar Branch. Secondary data (Annual Reports) have been
collected through on internet. And statements of affairs are provided by the Branch.

2.3 Sources of Data

Data is collected from the primary and secondary sources.
Primary Sources:
 Face to face conversation with the respective officers
 Direct Observation

 Practical desk work

Secondary Sources:
 Statement of affairs of Bangladesh Krishi Bank,Kashigonj Bazar Branch,Mymensigh.

 Internal server and external websites of BKB.

2.4 Time Frame

Data Year
Deposit 2016- 2020
Loan 2016- 2020
Recovery Loan 2016- 2020
 Table 2.1: Data Collection Period

2.5 Data Processing & Analysis

Some graphical tools are used in this study for analyzing the collected data and to classifying
those to interpret them in a clear and understandable manner. The collected data were
pointed out and shown as findings. Few recommendations are also made for improvement of
the current situation.

CHAPTER THREE

Organizational Profile
3.1 Historical Background of PBL
3.2 Vision and Mission of Vision Bangladesh Krishi Bank
The Bank has clear vision towards its ultimate destiny – to be the best amongst the top financial
institutions.
 To be contribute maximum of the welfare for the people of the country.
 Prime objective is to deliver a quality that demonstrates a true reflection of its vision.

 Excellence in banking.
 To provide quality service to the customer.

 To set high standard of integrity.

Bring total satisfaction to its clients, sponsors and employees

Mission
 To be the most caring and customer friendly provider of financial services.

 To ensure stability and sound growth while enhancing the value of shareholders
investments.
  To aggressively adopt technology at all levels of operations to improve efficiency and
reduce cost per transaction.
 To ensure a high level of transparency and ethical standards in all business transacted
by the Bank.
 To provide congenial atmosphere which will attract competent work force who will be
proud and eager to work for the Bank.
 To be socially responsible and strive to uplift the quality of life by making effective
contribution to national development.

3.3 Objectives of BKB

Objectives mean the end towards which an activity is aimed. An organization without objective
is like a person who is wandering with no purpose. All the activities of an organization are due
to its objectives and goals. For the attainment of those objectives, various types of financial
products and plans are developed. PBL has also some objectives, which are as follows:
 To ensure growth and development of the bank.
 To use resources of the bank efficiently.

 To get more deposits.

 To participate in development of the country.

 Paying special attention to the areas, which are under developed.

 To develop SME’S, foreign remittance, foreign trade.

 To increase industrialization in the country.

 To provide employment opportunities.

 To make people more of mind to have saving habits.

  To increase the services (backed by technology) by efficient employees.
 To increase deposit mobilization

3.4 Corporate Strategy of BKB

The corporate strategies of BKB are described below:

 Focusing on controlling operating cost.

 Focusing much general loan and SME loan.

 Using their own developed banking software.

 Focusing on steady and sustainable growth.

3.5 Nature of Business

The report is conduct through on a most prominent private bank; Bangladesh Krishi Bank. BKB
provide general banking services to the customer and also do the social welfare activities like
corporate social services on various field.

3.6 Organization Structure of BKB

Bangladesh Krishi Bank expanded as specialized bank in the country. Its operational networks
cover almost every part of the country including the major cities, rural townships, which are
prospective business centers in Bangladesh.There are total nine divisional offices,nine audit
offices,eight regional manager offices and fifty four regional audit offices.
3.7 BKB at a Glance

SL no Key Point Particulars

01 Name of the Bank Bangladesh Krishi bank

02 Logo of the Bank

3 Establishment 1973(Presidents order of 1973)

04 Status Specialized Bank

05 Honorable Chairman Mr. Mohammad Ismail

06 Honorable Managing Director Mr. Md. Ali Hossain Prodhania

07 Number of Branches 952

08 Corporate Head Office Bangladesh Krishi Bank,
Head Office(Krishi Bank Bhaban),83-85,
Motijheel C/A,
Dhaka-1000,
Bangladesh.

09 Corporate Website & Email www.krishibank.org.bd

bkb@citechco.net

10 Authorized Capital TK. 1500.00 Crore

11 Paid up Capital TK. 1150.00 Crore

3.9 Organogram of the Employees in BKB

GM

DGM AGM: 2 Foreign

DGM GENERAL Advance Exchange
BANKING
AGM: 1 AGM: 1 AGM: 1

SPO: 4 SPO: 5 SPO: 1

PO: 14 PO: 1 PO: 2

SO SO SO
 Officer Officer Officer

Junior Junior Officer Junior

Officer Officer

Figure 3.2: Organizational Program of the Employees BKB

CHAPTER FOUR

Deposit Collection and Loan Disbursement Procedure

4.1 Deposit Section
A bank deposit is the placement of funds in an account with a bank or other financial
institution. There are two types of bank deposits. One is demand deposits and other is time
deposits.
Demand deposit is the placement of funds into an account that permit the depositor to
withdraw his or her funds from the account without warning or with less than seven days'
notice. Checking accounts are one kind of demand deposits.
A time deposits are an interest-bearing deposit offered by a bank or financial institution for a
fixed term. For a time deposit, the depositor can withdraw the funds only after giving notice.
Time deposits generally refer to savings accounts or certificates of deposit and 30 days' notice is
required for withdrawal of these deposits. The notice requirement also means that banks may
assess a penalty for withdrawal before a specified date. Time deposits provide higher interest
rates than demand deposits.
4.1.1 Deposit Account of BKB:
Deposit account is one of the vital sources of bank’s funds. The banks offer attractive facilities to attract
customers.

Deposit account offered by BKB:

1. Savings bank (SB) account

2. Current deposit (CD) account
3. Fixed deposit account
4. Short Notice Deposit (SND)

Savings Account
A savings account is a place where you can store cash securely while you earn interest on your
money. Deposit account is one of the vital sources of bank’s funds. The banks offer attractive
facilities to attract customers.
Current Account:
A current account is an account, which is generally opened by business people for their
convenience. A current account is a running and active account. It may be operated upon any
number of times during a working day. There is no restriction on the number & amount
withdrawals from current a/c. It does not earn any interest.
Fixed Deposit Receipt (FDR) Account:
In this category is included the deposits with the bank for a fixed period which is specified at
the time of making the deposit. Such deposits are therefore called fixed deposits or term
deposits. A fixed deposit is repayable on the expiry of a specified period, chosen by the
depositor to suit his purpose. The fixed deposit may be made for 3 months, 100 days, 6 months,
1 year, 2 years or 3 years. As the date of repayment of fixed deposit is determined in advance,
the banker needs not keep more cash reserves against it and can utilize such amount more
profitably. The banker therefore offers higher rate of interest on such deposits. When a
matured FDR is withdrawn, the principle amount along with the interest amount (deducting
15% tax from the total but for TIN 10% tax from total) is paid to the client.
Short Notice Deposit (SND):
It is a deposit account open by customer where customer deposited money for short period.
Customer can draw money after giving short notice; this account holder enjoys the same
facilities of CD account including receiving interest on his deposited money. Interest rate of SND
is less than the interest rate of SB account.

4.2 Deposit Collection Procedure

Deposit is the source of loanable fund not income. Loan is the source of income of a bank.
Deposit may be collected by different schemes but this process is started by opening an
account.
2.2.1 Account Opening Requirement/ Condition
 Any person who is adult and mentally sound can open and maintain a SB account
(Savings Bank) with the head of single or multiple users. The guardian of the minor child
can open the SB account with the favor of them.
 Any club, association or any organization can open a SB account by providing the article
of association of their organization.
 Any illiterate person can also open a account in the bank. But such account holder must
be present at the time of withdrawing money from their bank account.
 There should be proper identification by any account holder who has the account in the
same branch and his account number and account name should be properly filled up in
the opening form with her/his valid signature that is used to run the bank account.
 For each and every account, a separate account number will be given that must be used
for depositing, withdrawing or other banking activities when required.
 An account holder can deposit money in his/ her account more than one time as he/she
wants.
 A client withdraws and deposits money only through specific cheque book and deposit
book issued by the bank only.
The following documents are needed as per rule as Bangladesh Krishi Bank.
 Two copies of passports size photograph
 Birth certificate copies
  The entries document must be verified by the authorized officer of the bank.
 Current valid passport copies
 Valid driving license copies
 National ID card copy
 Trade license with the applicant’s attachment photography
Additional Information for Savings Bank (SB) Account
 Opening Amount/ Initial Deposit Tk. 500/-
 Service Charge (yearly) Nil

 Minimum Balance Requirement Tk. 500/-

 Closing charge Tk. 350/-

 Interest rate 4.50%

 One can withdraw money two times in a week.

 If customer withdraws money more than twice in a week than no interest is given on his
account
Additional Information for Current Deposit Account
 Opening Amount/ Initial Deposit Tk. 2,000/-
 Service Charge (yearly) Nil

 Minimum Balance Requirement Tk. 2,000/-

 Current a/c may be individual or joint or partnership or can be formed on any name. It
provides the following facilities:
 Overdraft facility,

 Other facilities like collection of checks transfer of money, rendering Agency and general
utility services.
Additional Information for Short Term Deposit
 Opening Amount/ Initial Deposit Tk. 2000
 Service Charge (yearly) Nil

 Minimum Balance Requirement Tk. 2000

 Interest rate 3.75 %
4.3.2 Interest Rates for Deposit Schemes
SL Product Description Interest
Rate
01 Saving Bank Account Urban3.50%,
. Rural 3.50%
02 Special Notice Less than 100.00 Crore Urban
. Deposit 4.00%,
Rural 4.00%
100.00 Crore or above Urban
4.00%,
Rural 4.00%
03 Deposit Pension 15.00%
. Scheme
04 Pubali Pension 3 Years 7.50%
. Scheme 5 Years 8.50%
7 Years 9.00%
10 Years 9.00%
05 Pubali Sanchay 5 Years 8.50%
. Prokalpo 10 Years 9.00%
06 Student savings 1% hihger
. account than savings
rate
07 Small savings scheme 5 Years 6.00%
.
08 BKB Monthly Profit 3/5 Years 10.80%
. Scheme(Old)
09 BKB Double Profit 8.50%
. Scheme
10 Pubali Shawpna 8.50%
. Puran
11 FDR for 100 Days For any amount 7.50%
.
12 Fixed Deposit Receipt From 3(three)months and above but less 5.75%
. than 6 months
From 6 months and above but less than 1 5.85%
year
From 1 year but less than 2 years 6.00%
From 2 year but maximum 3 years 6.25%
4.4.1 Loan
Loan granted by Bangladesh krishi Bank are highly beneficial for firms, individuals, companies
and industrial concerns. Loan may be consider as credit granted where the funds are disbursed
and its recovery is made on a later date. It is a debt for the borrower. Loan is also the major
sources of risk for the bank management. An astute bank management should always try to
make an appropriate balance between return and risk involved with the loan portfolio.
Loans mean lend money made by the bank to weak clients for earning interest. Main objective
of the loans is to earn profit for the bank. The banks major earning come from interest received
of a bank.

4.4.2 Types of Loan of BKB

 Continuous Loan

 Demand Loan

 Term Loan

 Cash Credit (CC)

 Overdraft (OD)

 Bank Guarantee

 Staff Loan (BKB)

Continuous Loan
Continuous loan is the limited loans with expiry date of loan payment, which can be transacted
without any particular payment schedule, are termed as continuous loan.
 Cash Credit
Demand Loan
The loans which become eligible for payment when demanded by the bank, are termed as
demand loan.
 Flood Loan
 Loan against PPS
 Staff HBL
 Staff D/L(PF) Motor Cycle, Car
Term Loan
The loans which are to be paid within limited term with a particular payment schedule are
known as term loan.
Following are the various categories:
 Term loans up to 5 years
 Term loans over to 5 years
Cash Credit (CC)
Cash credit is given through the Cash Credit (CC) account. Cash credit account is basically a
current account, however a little difference exist between them. The distinctions between a
current account and CC account is that the former is intended to be an account with credit
balance and the latter an account for drawing of advances.
Operation of cash credit is as same as overdraft. The purpose of cash credit is to meet working
capital needs of traders, farmers, and industrialists.
Over Draft (OD)
Overdrafts are those drawings which are allowed by the banker in excess of the balance in the
account up to a specified amount for definite period. Generally it is given to the businessmen to
maintain their business activities. Any deposit in the SOD account is treated as repayment of
overdraft. Generally provided against FDR, any primary security etc.
Staff Loan:
Staff House Building Loan – SHBL
• 120 times of the basic salary is provided as SHBL
• Bank Rate + 1%, interest is charged to the employee
• Repayment is adjusted from their monthly salary
• Repayment is made at equal monthly installment
Staff Loan against Provident Fund – SPF
• 10% of basic is contributed by employee in every month
• 10% of basic is also contributed to the PF by the Bank
• Repayment is adjusted from their monthly salary
• Maximum Sanction from PF
4.5.1 Consumers Loan Scheme of BKB
 Car Loan
 Flat Purchase Loan
 Household Durable Loans
 Medical Equipment Loan
 Govt. Primary School Teacher Loan

4.5.2 Interest rate for loan product

SL Product Interest Rate

01 Cash Credit 12.50%

.

02 Over Draft 12.50%

.

03 Secured Over Draft 12.50%

.

04 Inland Bill Purchase 12.50%

.

05 Payment Against Document 13.50%

.

06 Loan Against Imported Merchandise 13.50%

.

07 Loan Against Trust Received 13.50%

.

08 HBL General Residential 11.00%

.
Commercial 11.00%

Pubali Mortgage 11.00%

09 All Export Loan 7.00%
.
10 Agriculture a) i) Crops Production(Dal, 4.00%
. Credit Oil Seeds ,Spices ,Corn)
a) ii) Crops 9.00%
Production(Other than
Dal ,Oil Seeds ,Spices ,Corn)

b) Fishery 9.00%
c) Poultry 9.00%

d) Domestic Animal Rearing 9.00%

11 Non Resident Credit Scheme 9.00%
.
12 Loan Against FDR(Other Bank) 10.50%
.
13 Loan Against FDR(Own Bank) Above 2% pledged FDR
.
14 Loan Against DPS Above 2% pledged DPS
.
15 Loan Against Secured Mortgage 15%
.
16 Loan Against Transport 12.50%
.
17 Term Loan 12.50%
.
**Persons having salary account with Pubali Bank Limited will enjoy 1% less than the prevailing interest
rate as usual.

Table 4.2: Interest rate for loan product

4.6 Loan Disbursement Procedure

The main function of a bank is to disburse loan. Lending is an ongoing process. It is through the
medium of lending the banking industry promotes economic activity, instills and encourages, at
the individual level, the principal of self-reliance, and yield earnings for the bank. It is lending
alone that brings banking into a more meaningful and purposeful contract with public and,
therefore, has the greatest impact upon them.
I would try to concentrate on BKB’s nature, pattern, and allocation of invested resources in this
chapter. The bank under study has divergence in its investment portfolio, loan programs,
advances and recovery rate etc.
Bangladesh Krishi Bank, Kahigonj Bazar Branch is situated in Kahigonj Bazar,Mymensingh which
is very important place in Mymensingh city. It is one of the important branches of BKB.
Bangladesh Krishi Bank sanctions loans. While lending fund, bankers, therefore, follows a very
cautious policy and conduct his business on the basis of well-known principles of sound lending
in order to minimize the risk

Process Flow of Loan Disbursement

 Customer Head Office
Sanction Letter
Applicalition Approval

Filling application
Project Appraisal Documentation
Form

Collecling CIB
Processing Loan
Report from Disbursement
Proposal
Bangladesh Bank

CHAPTER FIVE
Deposit & Loan Analysis and Findings
5.1 Target Deposit VS Actual Deposit of BKB,Mymensingh,Kashigonj Bazar Branch

Year Target Deposit Actual Deposit Target Gained

2016 35,00,00,000.00 39,12,28,390.28 111.77%
2017 43,00,00,000.00 45,57,48,979.96 105.98%
2018 50,00,00,000.00 47,14,57,917.63 94.29%
2019 57,00,00,000.00 52,36,24,896.73 91.86%
2020 62,00,00,000.00 63,93,52,959.08 103.12%

Table 5.1: Target Deposit VS Actual Deposit

 Target Deposit VS Actual Deposit
700000000

600000000

500000000

400000000

300000000

200000000

100000000

0
2016 2017 2018 2019 2020

Target Deposit Total Deposit

Figure 5.1: Target Deposit VS Actual Deposit

This graph shows that the total target deposit and the actual deposit of Bangladesh Krishi
Bank,Kahigonj Branch. Here I shall analyze the data for 5 years.. In 2016 the bank set up their
deposit target 350000000 taka but gained 39,12,28,390.28 taka. In 2017, 2018, 2019 and 2020
the bank’s target were respectively 430000000, 500000000, 570000000, 620000000. The
bank’s collected deposit were respectively 45,57,48,979.96, 47,14,57,917.63, 52,36,24,896.73
and 63,93,52,959.08. Here it can be seen that the total deposit is increasing every year. And
the bank fulfilled their target in 2016 and 2017.

5.2 Total Deposit and Its Growth Rate

Year Amount of Total Deposit Growth Rate
2016 39,12,28,390.28
2017 45,57,48,979.96 16.49%
2018 47,14,57,917.63 3.44%
2019 52,36,24,896.73 11.07%
2020 63,93,52,959.08 22.10%

Table 5.2: Total Deposit and Its Growth Rate

Present year −Previous year

*Growth Rate = ×100
Previous year
 Deposit Growth Rate
25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2016 2017 2018 2019 2020

Deposit Growth Rate

Figure 5.2: Deposit Growth Rate

This graph shows the growth rate of Babngladesh Krishi Bank,Mymensingh,Kashigonj Bazar
Branch. In the year 2016 to 2020 the growth rate were 20.74%, 16.49%, 3.44%, 11.07% and
22.10% particularly. Those positive growth rate express the high customer satisfaction of the
bank. In 2020 the deposit amount was 63,93,52,959.08. To consider this figure we can say that
bank’s growth rate of deposit is in good condition.
5.3 Target Loans VS Actual Loans of BKB,Mymensingh,Kashigonj Bazar Branch

Year Target Loan Actual Loan Target Gained

2016 19,00,00,000.00 14,64,12,140.68 77.06%
2017 17,00,00,000.00 17,49,92,108.47 102.94%
2018 23,00,00,000.00 26,83,35,107.17 116.67%
2019 35,00,00,000.00 46,13,33,963.22 131.82%
2020 55,00,00,000.00 60,38,27,524.78 109.79%

Table 5.3: Target Loans VS Actual Loans

Actual Loans against Target Loans

700000000

600000000

500000000

400000000

300000000

200000000

100000000

0
2016 2017 2018 2019 2016

Target loan Actual Loan

 Figure 5.3: Total Loans VS Actual Loans

This graph shows that the target loan and actual loan of Babngladesh Krishi
Bank,Mymensingh,Kashigonj Bazar Branch. Here I shall analyze the data for 5 years. In 2016 the
bank set up their loan disbursement target 190000000 taka but disbursed 14,64,12,140.68 taka.
In that year the bank could not fulfilled the target. In 2017, 2018, 2019 and 2020 the bank’s
target were respectively 170000000, 230000000, 350000000, 550000000, 620000000 and
700000000. The bank’s disbursed loan amount were 17,49,92,108.47, 26,83,35,107.17,
46,13,33,963.22 and 60,38,27,524.78. Here it can be seen that the loan disbursement amount is
increasing every year. Except 2016 bank fulfilled their target when the actual loan was less
than target.

5.4 Total Loans and Its Growth Rates

Year Total Loan Growth Rate

2016 14,64,12,140.68
2017 17,49,92,108.47 19.52%
2018 26,83,35,107.17 53.34%
2019 46,13,33,963.22 71.92%
2020 60,38,27,524.78 30.88%

Table 5.4: Total Loans and Its Growth Rates

Present year −Previous year

*Growth Rate = ×100
Previous year
 Loans Growth Rate
80.00%

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
2016 2017 2018 2019 2020

Loan Growth rate

Figure 5.4: Total Loans and Its Growth Rates

This graph shows the growth rate of loans of Babngladesh Krishi Bank,Mymensingh,Kashigonj
Bazar Branch. In the year 2017 to 20120 the growth rate were 19.52%, 53.34%, 71.92% and
30.88% particularly. All the year the growth rate were positive. Those positive growth rate
expresses the high customer satisfaction of the bank.
5.5 Total Loan against Total Deposit of BKB,Mymensingh,Kashigonj Bazar Branch.

Year Total Deposit Total Loan Percentage

2016 39,12,28,390.28 14,64,12,140.68 37.42%
2017 45,57,48,979.96 17,49,92,108.47 38.40%
2018 47,14,57,917.63 26,83,35,107.17 56.92%
2019 52,36,24,896.73 46,13,33,963.22 88.10%
2020 63,93,52,959.08 60,38,27,524.78 94.44%

Table 5.5: Total Loan against Total Deposit

 Total Loans against Total Deposit
700000000

600000000

500000000

400000000

300000000

200000000

100000000

0
2016 2017 2018 2019 2020

Total Deposit Total Loan

Figure 5.5: Total Loans against Total Deposit

This graph shows that the total loan against the total deposit of Babngladesh Krishi
Bank,Mymensingh,Kashigonj Bazar Branch. Here I shall analyze the data for 5 years. In 2016 to
2020 the loans were 37.42%, 38.40%, 56.92%, 88.10% and 94.44% of total deposit. Here it can
be seen that the total loan is increasing every year. It is a matter of concern for
BKB,Mymensingh,Kashigonj Bazar Branch and the bank pay attention into the matter.
5.6 Recovery of Total Loan of BKB,Mymensingh,Kashigonj Bazar Branch

Year Total Loan Recovery Of Loans Percentage

2016 14,64,12,140.68 14,64,12,140.68 100%
2017 17,49,92,108.47 17,49,92,108.47 100%
2018 26,83,35,107.17 26,83,35,107.17 100%

2019 46,13,33,963.22 46,00,46,207.20 99.72%

2020 60,38,27,524.78 60,32,86,106.00 99.91%

Table 5.6: Recovery of Total Loan

Recovery Percentages
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2016 2017 2018 2019 2020

Recovery Percentages
 Figure 5.6: Recovery of Total Loan

This graph shows the ratio of total loan and its recovery. In 2016, 2017 and 2018 loans and
advances were also recovered 100%. But in 2019 and 2020 were 99.72% and 99.91%. Here it
can be seen that last two year non-recovery loan is increasing. It is a matter of concern for
BKB,Mymensingh,Kashigonj Bazar Branch and the bank pay attention into this matter.

5.7 Profit & Loss of BKB,Mymensingh,Kashigonj Bazar Branch

Year Net Profit Growth Rate

2018 15510570.89
2019 16903904.51 8.98%
2020 19000901.90 12.41%

Table 5.7: Profit & Loss of PBL

 Growth Rate of Profit
14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2019 2020

Growth Rate

Figure 5.7: Growth Rate of Profit

The graph shows the net profit and growth rate of the profit of Babngladesh Krishi
Bank,Mymensingh,Kashigonj Bazar Branch. For unavailability of information for the years 2016
and 2017 couldn’t be shown here. Here in 2018 the net profir is tk 1,55,10,570.89 and there
was no growth rate as data for 2017 was not available. Net proft for 2019 was 1,69,03,904.51
and growth rate was 8.98% which increased to 1,90,00,901.90 with a increased growth rate of
12.41% in 2020. Overall it can be said that an average the profit is quite good than othar banks.
5.8 Findings of the Study
After analysis the report I have found some points that are given in the following.
 BKB,Kashigonj Bazar Branch is getting first mover advantages in collection of deposit and
to disburse loan because it situated in rural area. That is why this branch covers a huge
number of customers.
 Their deposit condition is good because they can fulfill their target and sometime near
to target. Their deposit growth rate is also in good condition.
 They are also good in loan disbursement and recovery of loan. In 2016 to 2018 they
recover their 100% disburse loan.
 The growth rate of loan disbursement is also in good condition. It is increasing year to
year.
 The amount of loans and advances against deposit was comparatively low but last two
yeas they are in good condition. Loan disbursement process is long term process and
manual also.
 In case of loan in different sectors the rate of interest is too high. Because the rate of
interest in Small Business Loan is 14% which all the rate of interest are higher than that
of other some banks.
 The Bank has more tendencies to provide loan to the businessman than other sector.
 In terms of law and order sometimes it is very difficult for the bank to liquidate the
collateral, which makes the borrowers unable to pay the debt.
 The bank provide adequate loan in the small and cottage industry and the agricultural,
Fishing, and Forestry also.
 Not enough innovative products.
 CHAPTER SIX

Conclusion and Recommendations

6.1 Conclusion
Bangladesh Krishi Bank is the bank which is highly potential Bank of Bangladesh. This bank
performs important banking and non-banking activities for both the public and the government
as a whole. This three months internship program at BKB will definitely help me to realize my
future carrier in the job market. I have tried by best to incorporate this internship report with
necessary relevant information.
Deposit collection and loan disbursement is the main function of a Bank. Banks collects deposit
from its client and then invests others to make profit. Actually deposit does not create profit. It
just create fund of a bank. Investment is the main source of earning for all banks. Being interest
free banking system, Bangladesh Krishi Bank invests its fund on the basis of profit-loss sharing
system. Pubali Bank collect deposit from mainly three deposit systems like fixed deposit, Time
deposit and a numerous Scheme. It also follows several policies of investment. The patterns of
modes of investment differ from one to another. Credit department diversified their loans in
different sectors classified by them. Among the sectors the bank provide more loans in the
agricultural side. The reason showed that this sector is very risky and depends on natural
climate and still didn’t expand their service in the rural side. The bank also does not provide
more loan in the small & cottage industry. The reason is that the return from this sector is not
very good and also the sector is very uncertain. The bank provides most of the credit facility in
term loan mainly in long-term loans. Return from short-term loan is very good and also proves
to be very safe to finance.
6.2 Recommendations
During my Three month Internship, it has felt that there is some problem in the Kashigonj Bazar
Branch. With a view to ensure exciting services and opening up the new window of progression
as well as uplift, It would like to present the BKB, Kashigonj Bazar Branch, Tangail, with several
suggestions like:
1. The branch is not well decorated and there is not sufficient employee. So they have
to take initiative to solve these problem.
2. The security must be valued properly by the independent values and constantly
watched so that the value of mortgage property becomes sufficient to recover the
default loan.
3. Prompt legal actions should be taken against willful loan defaulters so that loan can
be recovered easily.
4. The new entrepreneurs should be encouraged in disturbing loans and those who
have the records of regular payment, should be given preference.
5. Special training should be arranged to develop the efficiency of the employees who
are engaged in loan and advance department.
6. BKB has some attractive deposit schemes but it can be more to compare themselves
from others Bank.

7. BKB is giving equal focus on all schemes; so they should try to update all types of deposit
schemes and the bank has to improve their deposit policy. The deposit of the bank should
be more diversified.

8. Launch a different marketing strategy to be acquainted with new products to the existing
clients and prospective clients.

9. Account opening process should be easier.