Abstract:
Financial institutions are very much essential for the overall development of a country.
Especially banks play an important role in the field of promotion of capital, encouragement of
entrepreneurship, generation of employment opportunities etc. So the purpose of this study is to
assess the customer perception on general banking system and find the Credit management
system (its outstanding, recovery, classified loans etc), approval and monitoring process of
Janata Bank Limited. To fulfill the objectives of this report data were collected from both
primary and secondary source. Collected information have then processed & compiled with the
aid of MS Word, Excel & other related computer software.Major findings of this report are
Janata Bank Limited has a significant role in long term project financing in both agriculture and
industrial sectors. Again Janata Bank Limited has a deep concern for rural farmersMost of the
loans that Janata Bank Limited distributes are as cash credit hypothecation and Janata Bank
Limited emphasizes less on demand loan. Janata Bank Limited distributes loans without
sufficient security in some cases. This is violation of the Bangladesh bank order. In many cases
bank face this problem because bank’s credit officer fails to value collateral property. Proper
valuation means collateral will exactly cover the risk of bad loan. Officials must do it with due
care. The recovery performance of Janata Bank Limited is not in a satisfactory level at all and the
position of those in that respect deteriorated heavily during last two phases. The recovery
performance in agriculture is worse than in other sectors. On the other hand, as private sector
banks distribute more loans on short term basis and relatively better than public sector. But if we
compare it from the efficiency point, then it is clear that they are not still efficient in credit
management as they are unable to recover half of their distributed loan in different sectors.
During first phase 15.71% of the total loan of Janata Bank Limited became classified and this
classified loan came down to 23% in the second phase. Janata Bank Limited does not keep
enough provisions against classified loans and advances.Private sector banks are relatively
efficient in processing and executing legal actions against defaulters for their nonpayment of
loans and advances in due time that of public sector bank.
Description:
An Internship Report
Submitted to the Faculty of Agribusiness Management
Sher-e-Bangla Agricultural University, Dhaka
In partial fulfillment of the requirements
For the degree of
MASTER OF BUSINESS ADMINISTRATION
