Internship Report on CREDIT DEPARTMENT

Internship Report on
CREDIT DEPARTMENT & LOAN SECTION
OF
JAMUNA BANK LIMITED

-809625118110
Internship Report on
Credit Department &Loan Section of Jamuna Bank Limited
Submitted To
Dr. Seyama Sultana
Assistant Professor
School of Business and Economics (SOBE)
United International University (UIU)
Submitted By
Jannatul Ferdous
111 131 436
BBA Program
School of Business and Economics (SOBE)
United International University (UIU)
190823536410
Date of Submission: 20/05/2018
Letter of Transmittal20th May, 2018
Dr. Seyama Sultana
Assistant Professor
School of Business and Economics (SOBE)
United International University (UIU)
United City, Plot 2, Madani Avenue, Badda, Dhaka 1212
Subject: Submission of Internship Report
Dear Madam
I am submitting my internship report entitled “Credit Department &Loan Section of Jamuna Bank Limited” as a requirement of completion of the internship program of BBA at United International University under the school of business and economics.

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It was a great opportunity for me to gain knowledge in such a professional environment through the internship program. It has been a learning experience for me and in this report I have tried to reflect my learning. This report provides an illustration of the experiences that I have gathered during my 3 month s internship period.

I would like to thank you for all the support and guidelines you provided, which can help me to continue in the future.

Sincerely
Jannatul Ferdous
111 131 436
School of Business and Economics (SOBE)
United International University (UIU)
AcknowledgementAll the praises are for the Almighty, who bestowed us with ability and potential to complete this internship report. I also pay gratitude to the Almighty for enabling me to complete this report within due time.

For making of this report, I would like to thanks my respected supervisor Md. Abul Kashem (EO), Zainal Abedin (FO), Raqibul Hasan (FEO) and Mohammed Sahadat Hossain (FEO) for supporting me to learn about many organizational activities of Jamuna Bank. During internship period I was under their guideline to learn the organizational factors. They also help me to prepare this report by giving adequate information.
My special gratitude goes to my honorable internship supervisor Dr. Seyama Sultana, Assistant Professor, School of Business and Economics (SOBE), United International University (UIU), who motivated me to choose this topic. She helped me in every step of my internship report writing by giving proper guidance, advice and inspiration.

Executive SummaryInternship is must to fulfill academic requirement. This internship report is based on practical experience at the Jamuna Bank Limited, Shantinagar Branch, Dhaka. This study is based on five major objectives to know about the organizational framework of the Jamuna Bank Ltd., to present an overview of Jamuna Bank Ltd., to acquire the knowledge about the credit & Loan system of Jamuna Bank Ltd. during the study period, to enhance the recommendation to remove the problems of Jamuna Bank Ltd. during the study period. In the beginning of this report contains some description about the banking sector and perspective of the Jamuna Bank Limited. I collected both primary & secondary information to fulfill this study. The next part is Historical Background of the Bank, their corporate mission and vision, how they exercise their corporate and social responsibility. The next part is described about the product & services of the Jamuna Bank Limited. A diversified asset and liability product are offered by Jamuna Bank Limited. Those are broadly described in credit & loan section chapters. For the sanction of loan and some other expenditure, authorization from the Head Office is required. A target of profit is given by the Head Office and the branch is trying it best to achieve it. During my internship program in this branch I found that the credit policy and the lending process are required for better performance of the bank. From my point of view some problems are also identified. I have also pointed out some recommendations which I believe to be the best form to solving that the problems and Jamuna Bank Ltd. will be better perform in future and bank will be a great position among the all banks in Bangladesh. Finally I observed that Jamuna Bank Ltd. will ensure the better services to the people of Bangladesh and they will be more contribution on development of economy of Bangladesh.

Table of Contents
TOC o “1-3” h z u Letter of Transmittal PAGEREF _Toc514532301 h iAcknowledgement PAGEREF _Toc514532302 h iiExecutive Summary PAGEREF _Toc514532303 h iiiChapter 1: PAGEREF _Toc514532304 h 1Introduction PAGEREF _Toc514532305 h 11.1Theoretical Background PAGEREF _Toc514532306 h 21.2Objective of the Report PAGEREF _Toc514532307 h 21.3Methodology of the Report PAGEREF _Toc514532308 h 31.4Scope of the Study PAGEREF _Toc514532309 h 41.5Limitation of the Study PAGEREF _Toc514532310 h 4Chapter 2: PAGEREF _Toc514532311 h 5Overview of Jamuna Bank Limited PAGEREF _Toc514532312 h 52.1Location PAGEREF _Toc514532313 h 62.2Historical Background of the Industry PAGEREF _Toc514532314 h 62.3Principal activities of Jamuna bank Ltd. PAGEREF _Toc514532315 h 72.4Mission, Vision& Motto PAGEREF _Toc514532316 h 72.5Core Values PAGEREF _Toc514532317 h 82.6Strategic Precedence PAGEREF _Toc514532318 h 82.7Objectives PAGEREF _Toc514532319 h 92.8Product/Service Offerings PAGEREF _Toc514532320 h 102.9Online Banking PAGEREF _Toc514532321 h 112.10Organization Structure of Jamuna Bank Limited: PAGEREF _Toc514532322 h 12Chapter 3: PAGEREF _Toc514532323 h 13Job Responsibilities and Observation PAGEREF _Toc514532324 h 133.1The Nature of the jobs and my Specific Responsibilities PAGEREF _Toc514532325 h 143.2Observation PAGEREF _Toc514532326 h 15Chapter: 4 PAGEREF _Toc514532327 h 16Findings: “Credit Operation of Jamuna Bank” PAGEREF _Toc514532328 h 164.1Credit Facilities of Jamuna Bank Ltd. PAGEREF _Toc514532329 h 174.2Types of loan of Jamuna Bank Limited PAGEREF _Toc514532330 h 184.3Securities against Advances PAGEREF _Toc514532331 h 214.4Sector Wise Structure of Loan PAGEREF _Toc514532332 h 224.5Sector Wise Loan PAGEREF _Toc514532333 h 234.6Maturity of Loan and Advances PAGEREF _Toc514532334 h 234.7How Jamuna Bank recover their Loan PAGEREF _Toc514532335 h 244.8Overall Procedure for Sanctioning Loan PAGEREF _Toc514532336 h 24Chapter: 5 PAGEREF _Toc514532337 h 26Recommendation & Conclusion PAGEREF _Toc514532338 h 26Recommendation: PAGEREF _Toc514532339 h 27Conclusion: PAGEREF _Toc514532340 h 28References PAGEREF _Toc514532341 h 29Appendix PAGEREF _Toc514532342 h 30
Chapter 1:IntroductionTheoretical BackgroundAs being a financial organization, bank has to always deal with money. In modern age to run economy of a country, it is impossible to think without a bank. A bank is considered as a building of a capital, which is the key factor of the development of an economy.

The profit of a commercial bank depends primarily on the utilization of its fund. And the making of loan and advance is always profitable to a bank. As the bank mobilizes savings from the general people in the form of deposit, the most important task of it is to disburse the said deposit as loan or advance to the mass people for the development of commercial, industrial, who are in need of fund for investment. Credit enables a bank to proactively manage loan in order to bring a gloomy situation in the cost of fund.
Loan Default culture has started in Bangladesh mainly after the nationalization of banks. However, it was enhanced by the availability of huge amount of credit in the name of developing private and industrial sector. Industry set-up was shown as sick industry to get additional loan and relieve from interest.

Jamuna Bank Ltd. was established to provide term loan and other financial assistance to accelerate the pace of development to small industry of Bangladesh, is also prone to such disappointing features of problem loans. The report mainly focuses on the credit operating system, their credit policies and procedures of loan supervision and recovery, especially their classified loans.

Objective of the ReportTo complete the BBA program, Internship is must for the students who are going to graduate from the school of business administration. There are two kinds of objectives in this report-
Primary objective:
Primary objective is to learn the real world experience because I have gathered theoretical knowledge for BBA course and try to match real world experience with the theoretical knowledge.

Secondary Objective:
To acquire the knowledge about the credit system of Jamuna Bank Limited.

To know about the organizational framework of the Jamuna Bank Ltd.

To highlight an overview of Jamuna Bank at 2016
Methodology of the ReportThis report is the reflection of three months internship program at Jamuna Bank Limited, Shantinagar Branch, Dhaka. This report contains primary as well as secondary data which I had collected from the bank. I had observed the operations and worked with the officers at the same time. I had interviewed the JBL officials for getting more information. 1205483103412For the analysis part, data have been collected from different statements and the annual report of the bank.
Sources of Information
The data collection method of study consists of both of primary and secondary sources. But here from secondary sources, majority of the information was collected.

Primary sources:
Face to face conversation with the officer.

Direct observations.

Face to face conversation with the client.

The secondary sources of information are given below:
Annual report of the Jamuna Bank Limited of 2016
Website of the Jamuna Bank Limited.

Different publications of the Jamuna Bank Limited.

Theoretical books relating banking sector.

Scope of the StudyBanks have been playing an important role in economic development and contributing immensely to build the country. Banking sector is fast expanding in our country because of globalization and reform of private sector. To survive as a key player in this highly competitive and complex business environment a bank should develop its business focusing the customer’s satisfaction. As a student, I have learned about a bank; I also have learned the report writing, as a great deal of theory is included in this report. It will be also benefited for the people who are interested to know about Jamuna Bank Limited.

Limitation of the StudyThree month internship is not enough to know a company well. I have tried my best to prepare this report by gathering adequate information from the office assistance of Shantinagar Branch. I could not make outstanding report for the time limitation.

Chapter 2:Overview of Jamuna Bank LimitedJamuna Bank Limited (JBL) provides commercial banking services in Bangladesh. The bank first and foremost engages in corporate banking, project finance, trade finance, retail banking, consumer finance, small enterprise finance, and syndication. The range of services and SWIFT for foreign trade service offerings includes cash management services, safe deposit locker services, payments and clearings, employee benefits, collection services, treasury services, asset management. Jamuna Bank holds an asset of 390 million taka in its business.

LocationJamuna Bank Limited (JBL) is a Banking Company certified according to the Companies Act, of 1994 Bangladesh, and its Head Office is located currently at Hadi Mansion, 2, Dilkusha C/A, Dhaka-1000, Bangladesh. The Bank has begun its operation from 3rd June 2001.

Historical Background of the IndustryAs a 3rd generation Bank of Bangladesh, it focuses on
Outstanding with time
Supervision change
Developing individual capital
Build true customer’s value
The Bank offers both ordinary and Islamic banking through nominated branches. The Bank is directed and operated by a group of very much skilled and particular group of members with diversified experience in finance and banking. The Management of the bank always focuses on generous and anticipating customers’ needs. As the need of customers is changing day by day with the changes of time, the bank happenings its best to plan strategies and introduce new products trying to cope with the change. Jamuna Bank Ltd. has already achieved marvelous progress since it started. The bank is already one of the quality service providers of the country.

Currently the Bank has real-time Online banking branches (of both Urban and Rural areas) network throughout the country having smart IT-backbone. Besides conventional delivery points, the bank has ATMs of its own, sharing with other partner banks and group throughout the country.

The procedure hour of the Bank is 10:00 A.M. To 6:00 P.M. from Sunday to Thursday and the operation hour is from 10:00 A.M. to 4:00 P.M. The Bank discontinue its transaction on Friday, Saturday and government holidays.

Principal activities of Jamuna bank Ltd.The major activities of the bank is to provide all kind of profitable bank activities include a wide range of services as well as excluding deposits, creation loans, discounting bills, control money transfer and foreign exchange transactions and operating other related services such as safe keeping, collections, issuing guarantees, acceptances and letters of credit to its customers through its branches in Bangladesh.

Mission, Vision; MottoVision
To become a leading banking institution and to play a significant role in the development of the country.

Mission
The Bank is committed to satisfy diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force.

Motto:
The Bank will be a confluence of the following three interests:
Of the Bank: Profit Maximization and Sustained Growth.

Of the Customer: Maximum Benefit and Satisfaction.

Of the Society: Maximization of Welfare
Core ValuesTrust
Integrity
Commitment
Business Ethics
Quality
Fairness
Teamwork
Respect
Courtesy
Harmony
Unique Culture
Responsible Corporate Citizen
Strategic PrecedenceTransfer customer’ desired products and services to create true customers’ value.

Focusing on shipping of both traditional and nontraditional items and deposit to ensure a comfortable position of foreign exchange all the time.

Doing trade that has higher risk accommodate return.

Focusing on maintenance of assets quality rather than its aggressive expansion.

Changing the deposit mix thereby reduce the cost of deposits.

Ensuring all modern alternative delivery channels for easy access to our services by customers.

Taking banking to the doorstep of our target group.

Restructuring existing products and introducing new products to meet the demand of time and the target group.

Entering into new avenues of business to increase profitability.

Bringing unbanked people into our distribution channels.

Increasing payment based service/activities where costly capital is not changed.

Assure organizational efficiency by constant improvement of human capital and motivation level, diffusion of information and thereby ensuring a sustainable enlargement of the organization.

Maximizing shareholders’ value at all times alongside ensuring a sustainable growth of the organization.

Following CSR activities for continued support to future generation, concerned people and for advancement of neglected people of the country.

Establishing the brand image as a growth caring and pro-customers’ bank.

Strengthening risk management techniques and ensuring compliance culture.

Remaining cautious about environment and supporting for maintaining a green and clean soil.

ObjectivesTo establish affiliation banking and improve service quality through development of Strategic Marketing Plans.

To remain one of the best banks in Bangladesh in terms of profitability and assets quality.

To introduce fully automated systems through integration of information technology.

To ensure an adequate rate of return on investment.

To keep risk position at an acceptable range (including any off balance sheet risk).

To maintain adequate liquidity to meet maturing obligations and commitments.

To maintain a healthy growth of business with desired image.

To maintain adequate control systems and transparency in procedures.

To establish and retain a quality work-force through an effective human Resources Management System.

To ensure optimum utilization of all available resources.

To seek an effective system of management by ensuring consent to ethical norms, transparency and accountability at all levels.

Product/Service OfferingsThe Bank has a collection of form that prepared financial products and services. Those products are based on Monthly Savings Schemes, Consumer Credit Schemes, Lease Finance and Personal Loan for Women etc. Jamuna Bank Ltd, also well known with ATM cards for its expensive customers giving 24 hours banking services through the booths. Jamuna Bank offers the following services to expensive customer. The Bank is providing different types of services. Some of them are mentioned in below:
Deposit Schemes
Remittance and Collection
Import and Export handling and Finance
Loan Syndication
Project Finance
Investment Banking
Lease Finance
Hire purchase
Personal Loan for Woman
24-hours Banking: ATM facility
Corporate Banking
Consumer Credit Scheme
International Banking
Online BankingJamuna Bank Limited has started its real-time any branch banking on December 31, 2010. Now, customers can drop out and install money from any of its 122 branches located at Dhaka, Chittagong, Sylhet, Gazipur, Bogra, Naogaon, Narayanganj, Dinajpur, Kushtia,Rajshahi, Bashurhat, Sirajganj and Munshigonj and so on. There are 7 branches around Bangladesh is ready to be inaugurated soon. Clients can also retain 24 hours funding service through ATM card from any of ATMs located at specially Dhaka, and then Chittagong, Khulna, Sylhet and Bogra and so on.

Organization Structure of Jamuna Bank Limited:SVP
SVP
SVP (Credit)
SVP (HRD)
SVP (Board Secretary)
Executive Vice President
Executive Vice President
Senior Executive Vice President
Senior Executive Vice President
Deputy Managing Director
Managing Director (MD)
Chairman
Figure 2 SEQ Figure * ARABIC s 1 1: Organizational Hierarchy of JBLSource: www.jamunabankbd.com
Officer
First Officer
First executive officer
Executive officer
Senior Executive
Jr. Assistant Vice
First Assistant Vice President
Assistant Vice
SAVP
Vice

Chapter 3:Job Responsibilities and ObservationI was assigned at the Shantinagar Branch of Jamuna Bank Limited to complete my internship program. During my three (3) months internship program I enjoyed the work at the bank but most importantly I learned how to work under pressure with great responsibilities. Throughout this time I have got the opportunity to work with different department of JamunaBank Limited. There are different departments in Shantinagar Branch and they are:
General Banking (GB)
Credit Department (CD)
Foreign Exchange Department (FED)
Accounts Department
Clearing Department
I worked at most 4 departments in the past 3 months. However, my main Concentration was Credit department and thereby, I allocated maximum time to work at credit department section.

The Nature of the jobs and my Specific ResponsibilitiesIn the first week of my joining, I worked some days at General Banking (GB) department. I had learned so many things as being working here. I had various responsibilities at GB:
Bring out the account opening books for the customers and verifying them,
Attaching and counting the voucher of GB
I have lookup the FD, DPS and old account opening forms
Open account for new customers and aid them in the process
Learn how to open FD and DPS for new customers
At most of the time of internship period, I worked at Credit Department (CR). There I have learned many of the banking terms. I have to perform below activities-
I have Print, type and do photocopy different documents related credit.

I sometimes organize all the customer files (e.g. car loan, home loan) ; keep them at a specific place separately.

Check and fill up various forms of loans
Entries data in the computer.

Show the clients that where to sign on the form.

Sometimes helps my supervisor balancing credit ; debit.

Besides working on Credit department, I have worked at Foreign Exchange Department. There I learned so many things. Such as:
Processing a new LC (Letter of Credit)
Matching the Voucher with the Supplementary
I also worked in Accounts Department (A/C) and there I had to count different salary amount of the employees worked at that branch. I also match the different amount of debit and credit voucher of accounts department.
ObservationWorking at Jamuna Bank Limited, Shantinagar Branch was a great experience for me. I have learnt many things from them. From my little knowledge what I have observed and some recommendations are as follows:
I have found it very much interesting to work at Jamuna Bank. The people with whose under supervision I was, was really very nice and talented. I have noticed and observed the followings during time of internship:
The Bank has a really good atmosphere to work at, and the officers and each and every people are very nice.

Employees are very active and sincere to their assigned job responsibilities
Work is never left pending for the next day unless it is absolutely necessary
The work process could be made faster with better computers and operating systems.

There is always a rush of customers so there is no standard on what the employees do throughout the day. The work activities of an employee is set, but what to do when varies along the day
The work activities are always set and divided for each of the employees. This is the way it should be, but when I saw it firsthand it was remarkable. Each and every employee has a certain set of responsibilities. I saw that each and every other staff members help each other.

Chapter: 4Findings: “Credit Operation of Jamuna Bank”
A bank’s basic curriculum is to create a channel through depositing money from the surplus unit and provide funding to borrowers. For this there is a necessity of credit department in any bank. The credit department is a very crucial department of a bank. The money that assembles ultimate surplus units is dividing through this department to the ultimate shortfall unit (borrower).
Loans and advances are the heart of asset of all commercial banks. All over the world, Banks try more to make such a loan portfolio which helps to less the revenue at a minimum risk. Jamuna Bank endures to extend its credit facility by offering different customized loan products to business entities and individuals.

Credit Facilities of Jamuna Bank Ltd.The main focus of Jamuna Bank’s Credit program is to financing business, trade and industrial activities through an effective delivery system.

Jamuna Bank Ltd. offers credit to almost all commercial sectors to do their activities having productive purpose.

The loan portfolio of the Bank deal with a wide range of credit programs.

Credit is also offered to major thrust sectors, as marked by the govt., at a reduced interest rate to develop frontier industries.

Credit facilities are offered to those of individuals as well as housewives, businessmen, small and big business houses, traders, manufactures, corporate bodies, etc.

Loan is provided to the rural people for agricultural production and other farm related activities.

The pricing system of loan is customer friendly.

Prime customers enjoy prime rate in lending and other services.

Quick appreciation, appraisal, decision and disbursement are ensured.

Credit facilities are extended as per guidelines of Bangladesh Bank (Central Bank of Bangladesh) and operational procedures of the Bank.

Types of loan of Jamuna Bank LimitedJamuna Bank designed different types of loan according to the need of customers.

Loan types Purpose Minimum Income Loan Size Maximum Term of Loan
Auto Loan To produce brand new/reconditioned Personal, Transport, of age not more than 5 years. The Vehicle should have maximum 10(ten) seats. Model year is in the limit of 5 year. Net Income should be at least Tk.

40,000/- per month Minimum 5.00 Lac Maximum Tk. 40.00 Lac 5 years
Any Purpose Loan For construction ; renovation of residential house/building and purchase of Flat/Apartment ; any lawful purpose. Net Income should be at least Tk.

40,000/- per month Minimum 2.00 Lac Maximum Tk. 50.00 Lac. 10 years.

Personal Loan For any legal purpose Net Income should be at least Tk.

40,000/- per month Minimum 2.00 Lac Maximum Tk. 20.00 Lac 5 years
Salary Loan For any legal purpose Net Income should be at least Tk.

15,000/- per month Minimum 1.00 lac Maximum Tk.8.00 lac Or 12 times of gross salary, whichever is lower
5 year
Doctors Loan
Education Loan
Educational Expenses, Office Equipment, Medical Equipments Purchase, Professional Equipment Purchase, Commercial/Office/Chamber Space Purchase/, Renovation/Decoration, Office Decoration, Equipments, Electronics items purchase Student supposed to bear (1) Tuition Fees (2) Living Cost (3) Other Educational Expenses (4) Consultants Fee (5) Visa Processing fees (6) Traveling Cost (7) Document/Other verification Fees (8) Purchase of Educational Equipments/Gadget
(9) any other cost not stated above but acceptable to the bank Net Income should be at least Tk.

30,000/- per month.

Gross Monthly Income of the Customer/Guarantor should be at least Tk. 30,000/- per month.

Minimum 2.00 Lac Maximum Tk.

50.00 Lac.

Minimum 1.00 Lac Maximum Tk. 10.00 Lac
year
5 year
Overseas Job Loan Travel expenses, marital expenses, Educational expenses, Festival expenses, Home construction, House renovation, Land purchase, Transport purchase, Office equipment, Professional equipment purchase, office space purchase. Net Income should be at least Tk.

50,000/- per month Minimum 2.00 Lac Maximum Tk. 50.00 Lac
5 year
There are other types of loan depending on the various nature of financing:
Loan (General)
Short, Medium ; Long term loans are allowed to firms industries and individuals for a distinct purpose but for a limited period and normally repayable by payments fall under this head. This type of loan giving system mainly allowed accommodating financing under the class
Industry size Large ; Medium.

Small ; Cottage Industry.

Agriculture financing term ; others are also included here.

Cash Credit (Hypo.)
Credit allows individual/firm for trading as well as large scale purpose or to industries to meet up the risk capital requirements against charge of goods as primary security fall under this type of lending. It is a perpetual credit. It is allowed under the following
“Commercial Lending” when the customer is other than a industry and
“Working Capital” when the customer is an industry.

Cash Credit (Pledge)
Monetary accommodations to individual or firms for dealings as well as for whole-sale or to corporations as working capital against pledge of goods as primary security fall under cash credit pledge. It is also a stable credit and like the above allowed under the followings
“Commercial Lending” and
Working Capital”.

House Building Loan (General)
Credit allowed to individual or enterprises for building house (residential or commercial) fall under this type of loan. The volume is repayable by monthly installment within a stated period. Such advances are known as Loan (HBLGEN).

House Building Loan (Staff)
Credit allowed to the Banks employees for buying or developing of house shall be known as Staff Loan (HBL-STAFF).

Other Loans to Staff
The loan that allowed to employees other than for House Building shall be fall under the head – Staff Loan (Gen).

Consumers Credit Scheme
This is a special credit scheme of the Bank to finance purchase of consumers’ permanent to the fixed income group to raise their standard of living. The loans are allowed on easy terms against personal guarantee and deposit of specified percentage of equity by the customers. This credit is repayable by monthly installment within a fixed period.

SOD (General)
Credit allowed to individual/firms against financial obligation (i.e. lien on FDR/PSP/ BSP/Insurance Policy/Share etc). This type of loan may or may not be a continuous Credit.

Securities against AdvancesGenerally Jamuna Bank receives different types of securities against different types of credit facilities from which some of are as follows:
Types of Credit Securities
House building loan Primary securities: pledge of the land or any property
Car loan Primary securities: mutual registration and comprehensive insurance policy. Two valuable insurers.

Collateral securities: loan of land or any property. Any type fiscal obligation.

Auto loan Primary securities: mutual registration and comprehensive insurance policy.

Two valuable insurers and post dated bond
Any purpose loan Primary securities: two valuable insurers and post dated bonds.

Payments against documents(PAD) Pledge or lien of stock-in trade, goods, produce and
merchandise, machineries, land or building on which machineries are setup
Loan against imported
merchandise Assurance of imported merchandise
Loan against trust receipt Import document trust receipt
Local bills purchased The Bill itself
Foreign bill purchased Shipping certificates for exports
Overdraft Primary securities: Lien of book depth Collateral securities
Cash credit Primary securities: Lien of stock of goods in trade duly insured produce merchandise.

Collateral securities: Deed of land and building, any financial obligation
Sector Wise Structure of Loan
15815154473
Sector Wise Loan
Maturity of Loan and Advances
How Jamuna Bank recover their LoanWhen Jamuna Bank authorizes loans and advances to its customers, they clearly state the repayment pattern in the loan agreement. But some bond holders do not pay their loans in due period. The joint and private sector commercial banks have to face this sort of problems. This type of situation is also found in Jamuna Bank too. To overcome the problem of excess loan, the bank has taken some loan recovery programs.

Recovery Programs taken by Jamuna Bank Limited:
Establishing credit supervision and monitoring cell in the bank
Re-structuring the loan sanctioning and distributing policy of the bank
Sanction loans and advances against adequate securities as best as possible
The branch manager should have more power in credit management decision making process
Offering a package of incentives to the sound borrowers
Giving more attention on short term loans and advances
Imposing restrictions on loans and advances for imperfect industries
Taking legal actions as soon as possible against unsound borrowers as best as possible within the period specified by the law of limitations.

Overall Procedure for Sanctioning LoanThe following procedure need to be followed for giving advances to the customer. These are:
Party’s application
Filling form-X
Collecting CIB report from Bangladesh Bank
Processing loan proposal
Project appraisal
Head office approval
Sanction letter
Documentation
Disbursement
Party’s application
In this step, at first borrower had to submit an application to the respective branch for loan, where he has to clearly specify the reason for loan. After receiving the application form the borrower Bank officer verifies all the information carefully. He also has to checks the account maintains by the borrower with the Bank. If the official becomes satisfied then he gives form-X (prescribed application form of Bank) to the prospective borrower.

Filling Form -X
After satisfying with party’s application the applicant need to fill Form-X. It is the prescribed form provides by the respective branch that contains information of the borrower. It contains- Name with its factory location, Official address and telephone number, details of past and present business, its achievement and failures, type of loan needed etc.

Collection of CIB Report from Bangladesh Bank
After receiving the application for allowance, a letter to Bangladesh Bank is sent by Jamuna Bank for obtaining a report from there. This report is known as CIB (Credit Information Bureau) report. Jamuna Bank generally investigates this report from the head office for all kinds of investment.
Processing loan Proposal
When the banks receive CIB report from Bangladesh Bank, then the branches prepare a bid, which contains terms and conditions of investment which will get approval of Head Office.
Documentation
When the borrower accepts the sanction letter, the Documentation starts. Documentation is a written statement of fact demonstrating certain transactions covering the legal aspects duly signed by the authorized persons having the legal status. The most common charge documents used by the Jamuna Bank for confirm different kinds of Investment are:
Joint Promissory Note,
Letter of Arrangement,
Letter of Undertaking,
Letter of Disbursement,
Letter of Lien
Letter of Guarantee
Letter of Continuity
Letter of Revival
Letter of Encashment
Chapter: 5Recommendation & Conclusion
Recommendation:
Jamuna Bank Limited is one of the well known banks in our country. As I was only for few days with the enjoyable working environment of the bank, it’s quite hard to give recommendation to such a well established bank. Still from my little learning and observation, I am giving following recommendation to follow:
Jamuna Bank needs to focus on loan and advance services. Jamuna Bank also needs to offer attractive packages to promote their loan and advance product.

Maximum amount of loan is provided to the stable industrial sectors. They intentionally ignore the agriculture sector because of riskiness and safety issues. But for the overall economic development of the country they should diversify their loans in agriculture sector.

Jamuna Bank doesn’t have much of ATM Booths. So they need to put more attention to build more ATM Booths.

The overdue loans should recover through adequate actions taken by govt. and there should be take necessary steps to give loans within a limit.
The credit culture which is new can be developed in place of the old culture or lending system. Interest rate of credit should increase.

Jamuna Bank offers 67.38% loan and advances to Dhaka District, whereas rest 7 is very poor to this site. So, Jamuna Bank should take a look at those rests of the districts.
Conclusion:Jamuna Bank is one of the leading commercial bank started its curriculum in 2001. It has already developed a good image among its clients by offering its excellent services by different divisions. Such kinds of success come from the faithful, assurance and dynamic leadership of the banks management over the periods. The working environment of Jamuna Bank Limited is very friendly.
In any bank, Credit division is one of the most favorable tools. Recently in Bangladesh loan taking and credit facilities are becoming one of the most engaging activities of a bank. But still lots improvements in services and facilities have to be made in this department.

Credit Division of Jamuna Bank provides a qualified service by its dedicated group of clients and officers. The officers of credit department always monitor the credit in different sectors and their position. Before providing the loan the officers analyze whether the loan will be profitable and whether the client is good enough to repay the loan within the given period of time.

The main competitive advantage of Jamuna Bank is that it has online banking where as other local commercial bank cannot yet achieve that advantage. All the commercial banks of Bangladesh are now trying to achieve this. In this bank as well as with the other facilities, the employees are highly motivated by their remunerations and other benefits. Here, all the employees are very much cooperative with their customers, colleagues and simply visitors.

References
http://jamunabankbd.com/http://dspace.bracu.ac.bd/bitstream/handle/10361/3253/09204068.pdf?sequence=1Annual report of Jamuna Bank Limited (2016)
Appendix
For the Clients
Dear Respondent,
I am a student of United International University, conducting a survey on “Credit Management ; Loan section of Jamuna Bank Limited”. Please note that this is an academic study and here the findings will remain confined within academic interests. I am not going to disclose any part of this study. Your survey will highly cooperated here.

Please read the questions carefully and just put a tick (?) in the respective box and kindly give your judgments where necessary.

How can you differentiate Jamuna Bank from other Banks?
Low interest rate
Easy loan & disbursement
SME loan
others
What is the Opinion about Service Charge?
High
Medium
Low
Is the loan processing time lengthy?
fully agree
agree
disagree
fully disagree
How is the loan processing system of Jamuna Bank?
Very Good
Good
Very Bad
Bad
The loan taking area should taking care
Interest rate
Installment period
Service charge
Loan processing time

Figure 2.1- page 12

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