INTERNSHIP REPORT AT NATIONAL BANK LIMITED, BANGLADESH

                                         CHAPTER ONE

                              INTRODUCTION

1.1 DEFINITION OF INTERNSHIP PROGRAM

          Internship training means to acquire knowledge and information appearing directly by searching an authentic another searching method.

          We know there are two ways to acquire knowledge.

1.     Theoretical Knowledge

2.     Practical Knowledge

So, we can achieve theoretical knowledge through books, papers and lecture sessions conducted by teachers. And, practical knowledge means the implementation of theoretical knowledge in practical field.

          Thus we can say when anyone observes any subject of theoretical knowledge in practical field is called internship.

Mr. Green says “standard methods taken for searching knowledge are meant internship”.

1.2 IMPORTANCE OF INTERNSHIP

          For the students of MBA students of Management Department internship is an academic requirement. It allows the students to understand the connection between what is studied and how it is applied in the world of world.

          In our daily life, theoretical knowledge in acquired for the purpose of applying in the practical life. When we can implement the theoretical knowledge practically we can say the knowledge is successful. Otherwise, the achieved knowledge is valueless. And we know that internship program is the way of implementing the theoretical knowledge practically. However, the importance of internship is stated as bellows.

1.     Internship program helps to increase the quality and effectiveness of the trainer.

2.     Internship acts as a guideline during the service period. 

3.     To find us the technique and method for solving the problem of NBL.

4.     It facilitates thinking about problem of applying theoretical knowledge in the field of action.  

5.     To enhance the relation between administration and employee.

6.     To innovate new techniques of management.

7. We can achieve important knowledge about some critical matter of management.

8.     Internship mentally prepares for their professions.

1.3 OBJECTIVES OF INTERNSHIP

          The objective of internship training is to discover answer to questions through the application of considerable procedures.     

Main objectives are given below:

Ø     To understand administrative structure of NBL.

Ø     To understand loan sanctioning procedure along with general banking system of NBL.

Ø     To evaluate overall performance of NBL.  With special emphasis to Rajshahi Branch.

Ø     To identified problems faced by both the bank and the clients in loan management.

Ø     To put some suggestions on the basis of the findings of   internship program to improve the existing situation. .

1.4 Limitation of the study

          This study has some limitations, some of these limitations are:

v    Lack of Materials: I have faced many problems in collecting data, such as lack of reference materials in Rajshahi University central library and seminar library of the department. I got information form various journals, magazines, Internet, dailies etc. But those were not enough. I wanted to get more materials to enrich my paper.

v    Insufficient Time: The given time period for the internship to prepare my paper was to sufficient. It was not possible to over come the barrier of time. So time has affected the paper a lot.

v    Problems with Respondents: Due to their shortage of time and opportunity. Some respondents of my research have not given proper heed my question it troubled me a lot.

CHAPTER TWO

METHODOLOGY OF THE STUDY

2.1 METHODOLOGY

          Methodology is a systematic procedure, which is used to solve a problem easily in a particular area. It starts which problem, makes hypothesis and conclude decision finally. If covers collection, censuring, analyzing and interpreting of data to lead decision, i e. methodology includes why a study we have been undertaken, how the problems have been defined in what way and why the hypothesis has been formulated what data have been collected and what particular method has been adopted, why particular technique of analyzing data has been used and a host of similar other questions are usually answered when we take about methodology concerning a problem or study.

2.2 SOURCES OF DATA

          Data have been collected in the following ways.

a)     Primary source

b)    Secondary source

 

a) Primary source: The data, which are directly collected from the study field, are called primary data or raw data.

Primary data have been collected under the following methods:

(i)                Observation methods:

(ii)               Interviews

(iii)            Questionnaire.

b) Secondary source: I have collected secondary data form the following sources.

(i)                Annual report of the bank.

(ii)              Circular letter and journals

(iii)            Published papers on Micro credit

(iv)            Internet search.

                                           CHAPTER THREE

          AN OVERVIEW OF NATIONAL BANK LTD.

 3.1 Introduction:

          In the present world the importance of bank is unlimited. In the respect of business it is doubtlessly admitted. At present Bank such lifeblood of economy. That economy and trade are turned to concentrate it.

Bank does not only help for giving loan even help in kinds of financial transactions, that's why it told, “Bank is the compass of modern business ”. As a result the importance of banking activates increasing day by day.      

3.2 Histories and Heritage Of National Bank Limited

National Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. Established as the first private sector Bank fully owned by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with the passage of time after facing many stress and strain. The member of the board of directors is creative businessman and leading industrialist of the country. To keep pace with time and in harmony with national and international economic activities and for rendering all modern services,

NBL, as a financial institution automated all its branches with computer network in accordance with the competitive commercial demand of time. Moreover, considering its forth-coming future the infrastructure of the Bank has been rearranging. The expectation of all class businessman, entrepreneurs and general public is much more to NBL. Keeping the target

in mind NBL has taken preparation to open new branches by the year 2007. The expectation of all class businessman, entrepreneurs and general public is much more to NBL. Keeping the target in mind NBL has taken preparation to open new branches by the year 2007.

           The emergence of National Bank Limited in the private sector is an important event in the Banking arena of Bangladesh. When the nation was in the grip of severe recession, Govt. took the farsighted decision to allow in the private sector to revive the economy of the country. Several dynamic entrepreneurs came forward for establishing a bank with a motto to revitalize the economy of the country.

             National Bank Limited was born as the first hundred percent Bangladeshi owned Bank in the private sector. From the very inception it is the firm determination of National Bank Limited to play a vital role in the national economy. We are determined to bring back the long forgotten taste of banking services and flavors. We want to serve each one promptly and with a sense of dedication and dignity.

                                                                                                                    The then President of the People's Republic of Bangladesh Justice Ahsanuddin Chowdhury inaugurated the bank formally on March 28, 1983 but the first branch at 48, Dilkusha Commercial Area, Dhaka started commercial operation on March 23, 1983. The 2nd Branch was opened on

11th May 1983 at Khatungonj, Chittagong.

              At present, NBL has been carrying on business through its 101 branches spread all over the country. Besides, the Bank has drawing arrangement with 415 correspondents in 75 countries of the world as well as with 32 overseas Exchange Companies. NBL was the first domestic bank to establish agency arrangement with the world famous Western Union in order to facilitate quick and safe remittance of the valuable foreign exchanges earned by the expatriate Bangladeshi nationals. NBL was also the first among domestic banks to introduce international Master Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card. The Bank has in its use the latest information technology services of SWIFT and REUTERS.NBL has been continuing its small credit programmed for disbursement of collateral free agricultural loans among the poor farmers of Barindra area in Rajshahi district for improving their lot. Alongside banking activities, NBL is actively involved in sports and games as well as in various Socio-Cultural activities. Unto September 2006, the total number of workforce of NBL stood at 2239,

which include 1689 officers and executives and 550 staff.

        Since the very beginning, the Bank exerted much emphasis on overseas operation and handled a sizeable quantum of homebound foreign remittance. The Bank established extensive drawing arrangement network with Banks and Exchange Companies located in important countries of the

world. Expatriates Bangladeshi wage earners residing in those countries can now easily remit their hard-earned money to the country with confidence, safety and speed.

          The year 2006 marked the addition of yet another golden stair in the chronicle of NBL’s success story. Compared to 2005, Foreign exchange business of the Bank increased by 34.40% to Tk. 5186 crore, of which export, import and remittance business increased by 34.16%, 31.27% and 56.50% respectively. Total assets of the Bank stood at Tk. 4483 crore on 30.09.2006.

      

         Our Bank invested 25% equity in Gulf Overseas Exchange Company LLC, a joint venture Exchange Company in Oman, operating since November 1985 under the management of our Bank. The Bank received Riyal Omani 11875 equivalent to Tk.2.10 million as dividend for the year 2006. Now NBL is on line to establish trade and communication with the Prime International banking companies of the world. As a result NBL will be able to build a strong root in international banking horizon. Bank has

been drawing arrangement with well conversant money transfer service agency "Western Union". It has a full time arrangement for speedy transfer of money all over the world.

 Banking is not only a profit-oriented commercial institution but it has a public base and social commitment. Admitting this true NBL is going on with its diversified banking activities. NBL introduced National Bank Monthly Savings Scheme (NMS), Special Deposit Scheme, Consumer's Credit Scheme and NBL Housing Loan, NBL Small Business Loan, Small

House Loan Scheme, Festival Small Business loan etc. to combine the people of lower and middle-income group.

          Inspired by its social obligation and commitment and responsibility, NBL has been running a School and College upto Class XII solely on its own guardianship. From the very inception, this institution has been maintaining a good track record of results at the SSC and HSC Examinations. Conducted by a well-educated and trained team of teachers, reputation of this institution has been increasing day-by-day as a result of their relentless and sincere endeavor.

         Transparency and accountability of a financial institution is reflected in its Annual Report containing its Balance Sheet and Profit & Loss Account. In recognition of this, NBL was awarded Crest in 1999 and 2000,

and Certificate of Appreciation in 2001 by the Institute of Chartered Accountants of Bangladesh.

         A team of highly qualified and experienced professionals headed by the Managing Director of the Bank who has vast banking experience operates bank and at the top there is an efficient Board of Directors for making policies.

3.3 Mission and Vision of NBL

Mission

       Efforts for expansion of our activities at home and abroad by adding new dimensions to our banking services are being continued unabated. Alongside, we are also putting highest priority in ensuring transparency, account ability, improved clientele service as well as to our commitment to serve the society through which we want to get closer and closer to the people of all strata. Winning an everlasting seat in the hearts of the people as a caring companion in uplifting the national economic standard through continuous up gradation and diversification of our clientele services in line with national and international requirements is the desired goal we want to reach.

 

Visions

        Ensuring highest standard of clientele services through best application of latest information technology, making due contribution to the national economy and establishing ourselves firmly at home and abroad as a front ranking bank of the country are our cherished vision.

3.4 Objectives of National Bank Ltd:

1.     To come technology in contact each other by improving relation in between Bank and    respective client and to perform important role in national progress

2. To ensure better and prompt service to respective clients by applying modern information.

3.  To ensure in rising standard of professions by apply efficiency and technical knowledge

4.  To preserve surplus capital, wealth of standard quantity, skill management, maximum benefit and satisfactory liquidity reserve by implementing management core risk.

5.  To ensure maximum benefit by using highest equity of the respective

6.  To apply technique to ensure in maintaining balance development in all field regularly

7.  To keep Bank position in firm footing by ensuring better service in competition market

8.  To arrange investment of large amount and it’s enlargement in the field of loan through syndication financing

9.   To uphold the dignity of Bank both internally as well as internationally by adopting improved and timely bank activities

3.5 Organizational Structure of National Bank:

MANAGING DIRECTOR

ASSISTANT MANAGING DIRECTOR

DEPUTY MANAGING DIRECTR

SENIOR EXECUTIVE VICE PRESIDENT

EXECUTIVE VICE PRESIDENT

SENIOR VICE PRESIDENT

VICE PRESIDENT

SENIOR ASSISTANT VICE PRESIDENT

ASSISTANT VICE PRESIDENT

SENIOR PRINCIPAL OFFICER

SENIOR OFFICER

OFFICER

JUNIOR OFFICER

3.6 National Bank  Ltd. Management Committee

Mr. Md. Abdur Rahman Sarker

Chairman

Managing Director

Mr. Mohsin-Ul-Karim

Member

Deputy Managing Director

Mr. Azizur Rahman

Member

Deputy Managing Director

Mr. Masqur Ahmed

Member

Deputy Managing Director

Mr. Syed Mohammad Bariqullah

Member

Senior Executive Vice President

Mr. Shamsul Huda Khan Member Senior Executive Vice President

Mr. A K M Shafiqur Rahman

Member

Senior Executive Vice President

Mr. Syed Muazzam Hussein

Member

Executive Vice President

Mr. Nazib Uddin Bhuiyan

Member

Executive Vice President

Mr. Md. Mahbub Hussain

Member

Executive Vice President

Mr. Md. Jahangir Alam Chowdhury

Member

Executive Vice President

Mr. A R M Quamrul Hasan

Member

Senior Vice President

Mr. Mohammad Hossain

Member

Senior Vice President

Mr. Md. Azim Uddin

Member Senior Vice President

Mr. Sk Abdul Majid

Member

Senior Vice President

Mr. Md. Nazrul IslamMember Vice President

Mr. Kazi Kamal Uddin Ahmed

Member

Vice President

Mr. Muhammad Shamim Reza

Member

Vice President

CHAPTER FOUR

NATIONAL BANK LTD. RAJSHAHI BRANCH

4.1 Introduction

                         On my part of internship I had been assigned to get a practical training in National Bank Ltd. Rajshahi branch, Rajshahi. The training program running in between November 10, 2008 to November 19, 2008. Accordingly I am trying to pasteurize the experience accorded there from.

National Bank is one of the largest private banks in the country. It has 101 branches all over the country. Rajshahi branch is the 5^th branch of this bank. As it is situated at the middle point of the Rajshahi town. So, its function is very much wide.

4.2 Establishment and location of Rajshahi Branch

    

            National Bank Ltd, Rajshahi branch is the 5^th branch of National bank Ltd. Rajshahi branch was established in 1983.

            Location: Near the zero point of shaheb Bazar at Rajshahi town.

 4.3 ORGANIZATIONAL STRUCTURE OF RAJSHAHI BRANCH

VICE PRESIDENT

SENIOR PRINCIPAL OFFICER

PRINCIPAL OFFICER

SENIOR OFFICER

OFFICER

ASSISTANT OFFICER

PROBATIONERY OFFICER

JUNIOR OFFICER

4.4 Objectives:

            The objectives of this branch are not different from the overall objectives of National Bank Ltd. Its objectives are to actively participate in the economic development of this area by creating income generating activates socio-economic development of the costumer by providing credit to the productive sectors. 

 

4.5 EMPLOYEES OF THIS BRANCH IN 2008

EMPLOYEES	NUMBER
VICE PRESIDENT	01
SENIOR PRINCIPAL OFFICER	06
PRINCIPAL OFFICER	02
SENIOR OFFICER	03
OFFICER	02
PROBATIONERY OFFICER	01
JUNIOR OFFICER	04
CASH SHORTER	01
DRIVER	01
SECURITY GUARD	04
PEON	02
OTHERS	04
TOTAL	31

   

4.6 NATIONAL BANK RAJSHAHI BRANCH LAST FIVE YEARS

                                                    ASSETS                               Figure in lakh                                                          

ASSETS	2007	2006	2005	2004	2003
Cash at Bank	222.24	93.90	45.21	86.82	107.01
Other Bank	3.40	5.15	3.53	3.82	1.39
Advance	2612.73	4839.51	2756.34	1833.45	1637.98
Fixed Assets		9.73	16.59	26.21	29.87
Stock & stationary	29.79	13.11	24.76	2.83	5.89
Contra	375.81	423.40	1019.49	371.79	571.79
Intra Branch transaction	11724.65	5837.38	12968.96	12416.74	10349.33
Expenditure	1543.29	1245.76	1215.23	1149.94	1076.45
Total	18354.65	12467.95	18040.12	15891.67	13779.61

4.7 LAST FIVE-YEARS LIABILITIES OF NATIONAL BANK OF RAJSHAHI

      Figure in lakh      

LIABILITIES	2007	2006	2005	2004	2003
Deposit	14137.72	9998.49	15203.94	13731.48	11543.00
Bill payable	151.87	137.68	42.87	72.74	59.42
Demand draft	………	……	.19	92.02	.92
Interest suspense	1.20	3.69	3.91	17.18	37.70
Adjusted credit	301.90	301.81	382.90	340.12	370.00
Contra	3758.19	423.40	1019.44	371.79	571.75
Income		1602.88	1386.83	1357.60	1196.89
Total	18354.31	1267.95	18040.12	15891.67	13779.61

Source: Annual statement of affairs

 

4.8 Source of income of National Bank

1. Interest

2.     Commission

a) Remittance

v    Local remittance

v    Foreign remittance

v    LC commission

v    LG commission

3.     Exchange earning

4.     4. Locker rent

5.      Collection

6. Service charge

                           CHAPTER FIVE

                                          GENERAL BANKING

5.1 General Banking (Practical Work)

As a student of MBA Program, Department of Management I went to National Bank Ltd, Rajshahi branch for acquiring practical knowledge about all kinds of banking activities during my study work at that bank. I have gathered much practical knowledge about banking operation and this is delineated briefly in this section.

5.2 Operational activities of the National Bank Ltd, Rajshahi branch

a) Cash Section

Cash section is this section executes sections of bank upon which the responsibility of cash payment and cash deposit are placed .The following functions.

1.     Cash receive from the customer.

2.     Cash payment to the customer

Handling the replacement of money of various accounts inside the office.

b) Credit Section

This section is an important section of a bank. All the commercial banks are generally deal with credit business. National Bank Ltd, Rajshahi branch also deals with credit business to generate income.

c) Remittance Section

Remittance means transfer. It’s system of transferring money within a country. A bank can transfer its money among its various branches for transferring the money the following systems is used

v    Demand Draft (D.D)

v    Telegraphic Transfer (T.T)

v    Mail Transfer (M.T)

v    Payment Order (P.O)

These four will be discussed in brief in practical work.

d) General Advance

The credit, which is given by the bank, in general except agriculture industry and international trade is called general advance. Different types of general advance are as follows

v    Cash Credit

v    Term Loan

v    Overdraft

v    House Building Loan (General)

v    House Building Loan (Staff)

e) Deposit Section

Deposit section is a part of general banking procedure. Various sides of deposit management are as follows:

v    Collection of deposit and proper reservation.

v    Deposit mobilization.

5.3 Procedure of Opening an Account

National Bank Ltd, Rajshahi branch has given an opportunity to a customer for opening accounts with the bank. Opening of an account is the contract between a customer and the banker. The common procedures to open an account with the National Bank Ltd, Rajshahi branch are as follows:

v    Obtaining an application form from the bank.

v    Fill up the form and collect a recommendation from an existing account holder.

v    Fill up a bankcard with specimen signature.

v    Deposit some money and gives two-passport size photograph for opening an account.

v    Having an account number.

v    Get counter folio, checkbook and the account procedure is completed.

5.4 Types of Service:

 The bank performs commercial banking functions. The bank performs to their customer mainly the following services:

v    Commercial services

v    Deposit services

v    Loan services

v    Commercial services:

The bank gives the commercial services by DD.TT.MT and LC etc.

For these services they take a fixed interest. This is a source of income. National Bank gives their customers the facility to remit fund from one place to another. The people who are not customers can also enjoy this facility.

5.5 Cash Management:

             Cash is a liquid asset and cost incurring but non-earning and risky. So, its management is very important from the following points of view:

1.     Security and safety measures

2.     Proper utilization

3.     Customer service development

4.     The following steps are involved in cash management at branch level.  

5.     Cash Receipts:

6.     Receipts of cash are also sources of cash for the branch.

7.     From customer deposit in their account both deposit and loan account by pay-in-slip.

8.     From customer against remittance

9.     Deposit from other banks

5.6 Cash Receiving Procedures:

          For convenience, the cash receipt procedure is illustrated by chart-

After placing deposit slip, the respective officer makes an entry to scroll register book.

This receipt is placed before the cashier; he counts the amount of money first and then draws an entry to another register book.

Then the register passes the cashbook and deposit slip to the second officer.

After verifying the deposit slip, the second officer returns the counter-folio of the deposit slip to the customer and keeps the other position in his custody.

Cashier entries the amount into the cashbook.

At the end of banking hour, trial balance is prepared from that cash receipt register.

b) Cash payment:

Payment of cash is the use of through the payment customer’s cheque, draft, pay-order, Demand Draft, Mail Transfer, Telegraphic Transfer and Debit Cash Voucher.

Checkpoints:

v    Every payment must be paid in due course.

v    Securing the instrument before payment.

v    Check tally book.

v    Passed for payment by cancellation officer.

v    Amount/Date/Endorsement/Order/Bearer.

v    Entering the instrument in “Paying cashier book.”

v    Balancing of “Paying cashier book.”

v    Release of “Paying instrument from book.”

v    Unpaid instrument return.

Cash payment procedure:

          For convenience, the cash receipt produce is illustrated by chart-

Account holder places the check the Cash Officer (CO). The CO receives the cheque, enters it in a register and issues a token to the customer.

The CO now verifies the account position of the customer on computer. If the customer’s account position is okay, then he send it to the Second Officer (SO)

The SO compares the customer’s signature given on the cheque with that on the signature card kept in his custody. If the signature is okay then he makes an entry of the check in another register and cancels it by signing across the cheque.

Once the cheque is cancelled that is okayed for payment it is bought to the cashier.

Cashier enters the amount of the cheque in the cash register and pays the appropriate amount to the account holder.

At the end of banking hour a trial balance is prepared.

C. Cash Balancing:

          All the cash related employee ensure the balancing of cash in daily basis.

   All cash related register must be written in words and then signed.

Checking agreed with each other,

Preparing cash position memo.

Writing cash balance book

Checking all registers and signing

Ensuring that accounting balance is correct.

Preparing cash come daybook.

D. Checking cash in hand:

1.     Cash should be checked as per cash balance books.

2.     Counting the loose cash entirely also coin.

3.     Petty cash

4.     Prize bond stock.

E. Cash safe keeping:

          All the custodians of cash must ensure overnight safe keeping of cash at branch level. Counted cash to keep under following precaution:

1.     Iron safe condition

2.     Storeroom as per specification

3.     Lodgment of keys

5.7 LOCAL REMITTANCE DEPARTMENT

          Understanding: Remittance means transfer of fund from one place to another. The remittance, which is made within the country, is called inland remittance. NBL has its branches more and throughout the country and there fore, it serves as best mediums for remittance of funds from one place to another. This service is available to both customers and non-customers of the bank.

Main function:

The following things are done in this department:

v    Issuing and payment of demand Draft. All related correspondence with other branches & Banks.

v    Compliance of audit & Inspection.

v    Balance of local draft payable & local draft paid with advice.

v    Payment of incoming. TT.

v    Issuing of outgoing TT.

v    Issuance of local drafts.

Personal observations from this department:

         

National Bank Ltd. Rajshahi Branch remittance of funds from one place to another made by following two methods:

1.     Telegraphic Transfer (TT)

2.     Demand Draft (DD)

5.7.1. Telegraphic Transfer (TT):

It is an order from the issuing branch to the Drawee Bank/ Branch for payment of a certain sum of money to the beneficiary. Telex/ Telegram sends the payment instruction and funds are paid to the beneficiary through his account maintained with the Drawee branch or through a pay order if no a/c is maintained with the drawee branch.

a) TT issue process:

The applicant fills up the relevant part of the prescribed. Application from in triplicate duly signs the same and gives it to the Remittance Department.

Remittance Department will fill up the commission part meant for Bank’s use and request the Applicant to deposit necessary cash or cheque at the Tellers counter.

The Teller after processing the Application from, Cash or cheque will validate the Application form. The first copy is treated as Debit Ticket while the second copy is treated as Credit Ticket ad sent to Remittance Department of further processing. The third copy is handed over to the applicant as customer’s copy.

Remittance Department will prepare the Telex/ Telegram in appropriate from, sign it and send it to the telex Operator/ Dispatch Department for transmission of the message.

Remittance Department will prepare the necessary advice.

Debit Advice is sent to the client of client’s A/C is debated for the amount of TT.

Debit ticket is used to debit the client’s account if necessary.

TT Confirmation Advice is sent to the Drawee Brach.

Credit Ticket (2^nd copy of the Application Form) is used to credit the NBL general Accounts.

b) Accounting entry:

          Dr. Cash/ clients A/C

                   Cr. NBL general A/C

                   Cr. Commission.

c) Payment of TT:

          On receipt of TT the, Drawee branch passes payment instructions the following entries if the TT is found to be correct on verification of test number.

Dr. NBL general A/C

Cr. Remittance Awaiting Disposal- TT payable A/C

ii)       Dr. Remittances awaiting disposal- TT payable A/C

                   Cr. Clients/ Respective Parties A/C.

d) Commission: Up to Tk. 1000, the commission is Tk. 15 and for each of next Tk. 1000, the rate is Tk 1.5.

5.7.2. Demand Draft (DD):

DD is an instrument containing and order of the issuing branch upon another branch known as Drawee branch, for payment of a certain sum of money to the payee or to his order on demand by the beneficiary presenting the draft itself.

Process of issuing a Demand Draft:

Get the application form properly filled up and signed by the applicant.

Complete the lower portion of the application form meant form meant for Ban’s use.

Calculate the total Taka amount payable including Banks commission/ charge etc.

If a cheque is presented for the payment for the payment for the payment of the DD officer should get the cheque duly passed for payment by the competent authority and record the particulars DD on the back of the cheque.

If the purchaser desires his account with the branch to be debited for the amount of DD the officer should get the A/C holders signature verified properly form signature card on record of the branch and debited clients A/C for the total amount including commissions/Changes.

If cash deposit is designed, request the purchaser to deposit the money at the Tellers counter.

The teller after processing the application form, Cash or cheque, will validate the application form.

The first copy of the application from is treated as debit Ticket while the second copy is treated as credit Ticket and sent to Remittance Department for further processing. The third copy is handed over to the applicant an customers copy. Each branch maintains a running control serial number of their own for issuance of DD on each Drawee branch. This control serial number should be introduced at the beginning of each year, which will continue till the end of the year.

b) Accounting entries:

With IBCA:

Dr. Remittance Awaiting Disposal-DD payable A/C.

Cr. Clients A/C

Without IBCA:

Dr. DD paid without Advice A/C

Cr. Clients A/C

                   B. DBter receiving the IBCA

          Cr. Remi. Aw. Dis- DD payable A/C

Dr. Rem. Awa. Dis- Dd payable.

                   Cr. DD paid without Advice A/C

C) Payment of DD: On receipt of credit advice (IBCA) from the Issuing branch the Drawee branch then passes the following responding entries.

          Dr. NBL general A/C

                   Cr. Remi, Awa. Dis- DD payable A/C

D) Commission: Up to Tk 1000, the commission is Tk 15 and for each of next Tk, 1000, the rate is Tk, 1.5.

5.8 FOREIGN EXCHANGE DEPARTMENT:

         

It is a very important department this department is concerned with import & export, Buying and selling’s of foreign currency and foreign, remittance, but only import and export related activities are performed in NBL, RB.

L/C Service:

          A letter of credit is an undertaking by a bank on behalf of its client to pay a certain amount of money to a certain person / seller on the fulfillment to the terms and condition as laid down in the L/C. L/C is required mainly for import of goods from abroad. The NBL, RB  deliver L/C service to the importer. At the time of opening L/C a preformed invoice is needed and the exporters signature must be required in this preformed invoice. To pen L/C a certain percent margin is required and at the time of retirement of the goods the rest amount must be paid. Printing and stationary charge Tk. 200 should have to pay at the time of opening L/C. The L/C’s duration is 90 days. All the L/C must be include under PSI.

          The commission rate on L/C is 0.50%. If the L/C’s amount is high, then the commission rate is 0.45%. Here both the foreign corresponding charge and telex charge is Tk. 1000. Commission and every kind of charges have to be paid in cash. If any causes the L/C is cut off then the telex charge do not get back and every time the amendment charge Tk. 200and telex charge Tk. 500 must be paid shipment the goods and receive document, the rest amount should be paid within 7 days otherwise 20% pearly charge have to pay the importer. If the import amount is higher than 50,000dollar then the BB’s registration is required.

1.     Necessary documents to open letter of credit (L/C)

2.     Import registration certificate.

3.     Trade license.

4.     Membership form Approved Merchant Association.

5.     TIN

6.     Vat.

7.     Bank account of L/C issuing Bank.

8.     Performa invoice / Indent.

9.     Primary contract between Importer and Exporter.

Western Union

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5.9 CLEARING DEPARTMENT

UNDERSTANDING:

          According to the Article 37 (2) of Bangladesh Bank Order, 1972, the banks, which are the member of the clearinghouse, are called as Scheduled Banks. The scheduled banks clear the chouse drawn upon one another through the clearinghouse. This is an arrangement by the central bank where everyday the at the-member banks gathers to clear the close. Banks boor credits of the proceeds to the customer’s accounts accept Chouse and other similar instruments. The bank receives many such instruments during

the day from account holders. Many of these instruments are drawn Payable at other banks. If they were to be presented at the drawee banks to collect the proceeds, it would be necessary to employ many messengers for the other banks would present bank and them at the counter. The whole process of collection and payment would involve considerable labor, daily, risk and expenditure. All the labor. The representatives of all the banks meeting at a specified time, for exchanging the instruments an arriving at the net position regarding receipt or payment substantially reduce risk, delay and expenditure. The place where the banks meet and settle their dues is called the Clearinghouse.

Main Functions:

          The following things are done in this department.

Preparation of Clearing Outward and Inward Lodgment and record maintenance of the same Batch positing as and when required.

PERSONAL OBSERVATIONS:  

          Following things are observed in the period of Practical Orientation in this department:

          The clearinghouse sits for twice in a working day. The members submit the claimable checks in the respective desk of the banks and vice versa. So, instruments are exchanged over there.

On receipt of instruments, the same is endorsed here. Then clearing section will went IBDA to head Office for clearing purpose and on receipt of IBCA from Head Office amount is credited to customers account vice versa. If the instrument is return then the same is given back to the customer.

ACCOUNTING ENTRIES:

          For in ward instruments:

          Customer A/C…………………………Debit

                   General A/C…………………………….Credit

Incase of return………………………....Debit

                  

NBL General A/C…………………….…Credit

                   Incase of return:

                   NBL General A/C………………………..Debit

                   Customers A/C …………………………..Credit

For outward instruments:

                   NBL General A/C ………………………...Debit

                   Customer A/C …………………………….Credit.

In case of return:

                   Customer A/C……………………………..Debit

                   NBL General A/C ………………………....Credit.

                                               

                                                    

                                                       CHAPTER SIX

                                              LOANS & ADVANCES

 

6.1 Introduction

The management of banks assets must be conducted in a profitable and safe manner. Safety is essential to commercial banking since banks hold billons of Taka of deposits of individuals, business, and governments. Profit is also necessary for the successful operation of a bank. Lending is the most profitable as well as the most risky function preformed by banks. Therefore, it must be done efficiently and with a minimum of loss Loan and Advance management is essential for the bank.

1. To earn interest from the borrowers and give the depositors interest back

2. To accelerate economic development by providing different industrial as well as agricultural advances

3. To create employment by providing industrial loans

4. To pay the employees as well as meeting the interest groups

Credit is continuous process. Recovery of one credit gives rise to another credit. In this process of revolving of funds, bank earns income in the form of interest. A bank can invest its fund in May ways. Bank makes loans and advances to traders, businessmen and industrialists. Moreover nature of credit may differ in terms of security requirement, disbursement provision, terms and conditions etc.

We often use loans and advances as an alternative to one another. But this concept is incorrect. Academically Advances is the academically combination such items where loans is a part only. For this credit section of the banks is known as advance section. Academically Advance is the combined form of the following items

To analyze the credit approval process, the very first thing to understand the security and made of charges on securities because without security, no credit is approved.

Security-An insurance or cushion to fall back upon in emergency

Primary security	Security deposited by the borrower himself to cover the loan FER, Cash PSP easily cashable item
Collateral security	Narrow sense – security deposited by a third party to secure the advances for the borrower Wider sense – any types of security on which the creditor has a personal right of action of advance

Common methods of charging security and their nature of security:

Mode	Nature of security & its characteristics
Lien	Cash, cash collateral and documents of the title to the goods It is the right of banker to hold the debtor’s property until the debt is discharged generally retained by the bank in its own custody or to the hands of third party with lien marked. The third party cannot discharge it without the permission of the bank. In case of need bank needs the permission from the court to sell the property.
Assignment	Borrower transfers the right of property or debt to the bank, Life insurance policies, supply bills; book debt of the borrower can be assigned.
Pledge	Moveable stock of raw materials, finished goods, merchandise Pledge is also line but here bank enjoys more right Physical transfer of goods to the bank is must Bank can sell the property without the intervention of any court, in case of default on loan.
Hypothecation	Moveable stock of raw materials, finishes goods, merchandise Goods remain in the hands of debtor, but documents of title to goods are handed over o the banker. This method is also called “equitable charge”. Bank inspects the goods regularly to judge the quality and quantity for the maximum safety of its loan.
Mortgage	Mortgage is the transfer of special immovable property like land building, plant etc. Most common type of mortgage is legal mortgage in which ownership is transferred to the bank by registration of the mortgage deed. Another method called equitable mortgage is also used in bank for creation of charge. Here mere deposit of title to goods is sufficient for creation of charge. Registration is not required. In both the cases, the mortgaged property is retained in the hand of borrower.
Trust receipt	Intangible asset (goodwill) It is used in foreign exchange business it will be discussed thereon

This critical analysis of credit approval system of the National Bank Ltd. has been analyzed in this report in the following manner.

Account opening formalities

Credit Application Form and Annexure

 Receipt of Application and required documents

 Scrutening

Types of Credit, Credit Allocation, Designing and determination

Credit Proposal

Board Memo

 Sanctioning and Advising (Delegation and Downloading)

These steps are discussed in the following:

A. Account opening formalities:

This Section opens accounts. Selection of customer is very important for the bank because bank’s success and failure depends on their customers. If customer is bad, they may create fraud and forgery by their account with bank and thus destroy goodwill of banks. So, this section takes extreme caution in selecting its customer base.

6.2Accounts Opening Process.

Spet-1	Receiving filled up application in bank’s prescribed form mentioning with type of account is desired to be opened
Spet-2	1.The form is filled up by the applicant himself/herself 2.Two copies of passport size photographs from individual are           taken, in case of firms photographs of all partners are taken 3.Applicants must submit required documents 4.Applicants must sign specimen signature sheet and gibe mandate 5. Introducer’s signature and accounts number verified by legal office.

Spet-3	Authorized officer accepts the application
Spet-4	Minimum balance is deposited only cash is accepted
Spet-5	Account is opened and a Cheque book and pay in slip book is given

Special Caution must be taken for the following customers:

In individual name	The client had to fill up a light green account opening form. Themes and conditions are printed on the back of the form. The contains the declaration clause, special instructions etc.
In joint name	In this type, the formality is same as individual account, but in the special instruction clause, either or survivor, or former or survivor clause is marked
Proprietorship	In addition, the customer has to submit the valid Trade License and Tax paying Identification Number (TIN) along with the application.
Partnership Firm	1.A copy of the partnership agreement (Partnership deed) 2.Resolution of the partners regarding account opening 3.Trade license 4.Mandate as to operation of the account
Private Limited Company	1.Certified copy of Certificate of Incorporation 2.Copy of Memorandum and Articles of Association 3.Certified copy of Commencement of Business 4.Copy of Resolution of the Board of Directors
Public Limited Company	1.Certified copy of Certificate of Incorporation 2.Copy of Memorandum and Articles of Association 3.Certified copy of Commencement of Business 4.Copy of Resolution of the Board of Directors
Non-trading Concerns (Societies, Clubs, (Associations)	1.Registration Certificate under the Societies Registration Act, 1962. 2.Certified copy of Bylaws & Regulations/Constitution. 3.Certified copy of Resolution for opening and operation of account. 4.Power of attorney to borrow
Joint account in the name	A minor cannot open an account in his own name due to the incapacity to enter in National Bank in joint name of another person who will be his guardian.

These are the account opening formalities and first step of credit performance system. The second step of credit performance system is discussed here.

6.3 Credit Principles:

To achieve our goal for maximize the stockholders value and protect the interest of the depositors as will as to improve the quality of banks assets as fundamentally sound financial institution, as well abide by but will not be limited to the following Credit Principles, which should guide our behavior in our lending decisions:

1.	Assessment of the customer’s character, integrity and willingness to repay will form basis of lending.
2.	Customers having capacity and ability to repay shall only be lent.
3.	Possibility of default will be worked out before lending.
4.	Credit will be extended in the areas risks of which can be sufficiently understood and managed.
5.	Independent credit participation in the credit process shall be ensured.
6.	Ethical behavior in all credit activities shall be ensured.
7.	Be proactive in identifying, managing and communicating credit risk.
8.	Be diligent in ensuring that credit exposures and activities including processing function complying with NBL requirements as well requirement of regulatory authority.
9.	Risk and reward to be optimized.
10.	Diversified credit portfolio to be built and maintained.
11.	Credit will normally be financed from customer’s deposits and not our of short-term temporary funds or borrowing from other banks.
12.	The bank shall provide suitable credit services and products for the market in which in operates.
13.	Credit will be allowed in a manner, which will in on way compromise with the Bank standard of excellence and to customers who will not compromise such standards.
14.	All credit extension must comply with the requirement of banking companies Act. 1919 and amendments thereof from to time.

6.4 Credit Evaluation:

National Bank will follow the following credit process:

1.     Prevailing credit practices in the market.

2.     Credit worthiness, background and track records of the borrower

3.     Financial Standing of the borrower supported by financial statement and other documentary evidences.

4.     Legal jurisdiction and implication of applicable laws.

5.     Effect of any applicable regulations and laws.

6.     Purpose of the loan/facility.

7.     Tenure of the loan/facility.

8.     Cash flow analysis and also projections thereof

9.     Quality, vale and adequacy of security, if available.

10. Risk taking capacity of the borrower.

11. Entrepreneurship and managerial capabilities of the borrower.

12. Reliability of the sources of repayment.

13. Volume of risk in relation to the taking capacity of the bank or company concern.

14. Profitability of the proposal to the bank or company concern.

15. Credit Risk Grading.

16. Market aspect.

17. Total global exposure of the borrower.

18. CIB                                                                                                                                                                                               

6.5 CREDIT POLICY GUIDELINES

Lending Guidelines:

Industry and Business Segment Focus:

Our bank's main focus on various lending/areas will be as under:

Industry and Business Segment	Focus
Trading Business	Grow
Textile (Yarn/fabrics manufacturing)	Grow
Entertainment	Grow
Telecommunication/IT	Grow
Power Generation and distribution	Grow
Energy (Power/Fuel/Gas)	Grow
Services viz. GSA, Freight Forwarder, Airlines etc.	Grow
Steel and Re-rolling Mills	Grow
Engineering and Construction	Grow
Small Traders/SME	Grow
Agro-based industries/Dairy products/Fishery/Carp	Grow
Export Oriented Industries	Grow
Pharmaceuticals	Grow
Consumer loans (Personal, Auto credit card)	Grow
Food and Allied (Edible oil, Flour, etc.)	Grow
Ship Scrapping	Grow
Real Estate	Grow
Paper	Grow
Transport	Grow
Cold storage finance	Grow
Financing Cement Industries	Grow
Electric Goods	Grow

6.6 Type of Loan Facilities:

National Bank Limited has been offering wide range of credit facilities as under:

Name	Purpose
Cash Credit (Hypo & Pledge)	Business capital/Working capital
SOD (General)	Against F.O/work orders/supply orders
SOD (Export)	Payment of Accepted bills at maturity before receipt of export proceeds.
Loan (Gen)	Acquiring capital assets/purchasing, construction, finishing, expansion, repair, and renovation of House/Flats/Real estate businesses.
LCA (Loans against cash Assistance)	Financing for the period of non-receipt of reimbursement for Bangladesh Bank.
LC (Local & Foreign) Sight & on Deferred payment basis	For import/Local procurement of goods/services.
PAD	For making payment of the L/C obligations against receipt of documents.
LTR	Retirement of shipping documents.
LIM	Retirement of shipping documents.
PC	Meeting financial requirement of the exporter at per shipment stage against Export L/C.
LDBP/FDBP	As post shipment finance against local/foreign export bills.
BTBL/C	Import of raw/packing materials against Export L/C.
Bank Guarantee Local/Foreign	For submission of tender / to obtain and offer as security against work order, supply order/For Gas, Electricity connection/against delivery of goods/against release of goods, without or against portal payments by customer etc.

National Bank will also finance any other activity un

Single Borrower/Group Limits/Syndication:

National Bank Ltd. Peruse/will continue to peruse the policy of avoiding too much loan concentration to a single borrower/group in order to by pass possible threat in the event of such advances turning sticky. In a bid to keep credit risk at the minimum level in respect of large but prospective advance, National Bank will prefer syndicated financing (Appendix-R) after proper feasibility study following strictly and will continue its lending operation, in complete obedience to the guidelines circulated by Bangladesh Bank on single party exposure limit to a borrower / group National Bank Limited will not extend credit (Funded+non funded) for more then the percentage on capital of the bank, permitted by Bangladesh Bank and will follow all modification, amendments, additions that may be may by made by Bangladesh Bank from time to time to time.

However, National Bank will flow the following guidelines of Bangladesh Bank on lending to single borrower /group under one obligor:

Lending cap to single borrower	Amount
Total exposure (Funded and non funded)	35% of Bank’s total capital
Maximum funded exposure	15% of Bank’s total capital
Maximum non funded exposure where there will be no funded exposure	35% of Bank’s total capital
Maximum exposure for export sector.	50% of Bank’s total capital (But funded facility will not exceed 15% of the total capital)

The above single Borrower / Group Exposure in currently mandatory as per Bangladesh Bank instruction. However, this is subject to change depending on Bangladesh Bank’s policy.

The total capital is to be determined in accordance with section 13 of the Bank Company act 1919.

Lending Caps:

National Bank Limited is very much aware of over concentration of credit in a particular area, which may under some situation, create disaster for the bank keeping this in consideration and also the over all business trend, prospects / potentials, problems risks & mitigates, pricing owner’s stake in business, business computers involvement, safety, liquidity security etc. our bank will be the following lending gaps generally.

Sector Caps*	%
Trade & commerce	45%
Industry working capital	10%
Project Finance Long Term	10%
Retail/Consumer (CCS)	10%
Agro Credit	5%
Work/Supply order (Contractual Finance)	5%
Others	5%
Total	100%

* The Caps will be revised from time depending on the market conditions, Shift in government policy and National Bank’s credit focus.

Discouraged Business Types:

While National Bank will follow the policy of financing prospective, feasible & rewarding areas, it will have (as P0resently has) some areas, identified as discourage. Generally the following areas will be discouraged for financing:-

v    Military Equipment/Weapon Finance

v    Highly leveraged Transactions

v    Finance of speculative business

v    Logging, Mineral Extraction/ Mining or other activity that is ethically or environmentally sensitive.

v    Lending to companies listed on CIB black list or known defaulters

v    Counter parties in countries subject to UN sanctions

v    Share lending

v    Taking an equity stake in borrowers

v    Lending to holding companies

v    Bridge loans relying on equity / debt issuance as a source of repayment

v    New Cold storage finance

v    Financing Cement Industries

6.7 Loan Facility parameters:

National Bank Limited extends and will extend credit for various genuine purposes. One type of advance requires to be treated differently from other types. Depending on the type financed, ownership pattern, business mode, case flow, security and other related matters facility parameters are to be set.

However the general parameters in facility will be as under:

1.     Nature of Advance

2.     Purpose

3.     Limit/Amount of Facility/Maximum Size

4.     Margin/Equity

5.     Rate of Interest

6.     Rate of commission/charges

7.     Mode of disbursement

8.     Mode of repayment

9.     Security

10. Validity/Maximum tenor

11. General/Special conditions/covenants

6.8 Nature of Advance:

Each advance to be made will be categorized under one of the arranged types and will governed under the terms & conditions related thereto.

Purpose:

Our lending will be guided by legitimate purpose. Financing for hoarding, speculative purpose and which will be utilized for degrading the character of the people will be avoided. Credit which will contribute to production, trade, commerce, import export, development of Industries, development activities/Economic growth, infrastructure development, employment generation, poverty alleviation etc. will be stressed.

Limit/Amount of facility/Maximum Size:

Facility will be considered based on assessment of requirement & justification subject to the overall lending cap as per Bangladesh Bank single party exposure limit.

Margin/Equity:

It will be the general policy of the bank to judiciously ensure stake of the borrower in any financing plan. Margin will however; be subject to institutional policy in this regard, and central bank policy where applicable.

Rate of Interest/commission and other charges:

Rate of interest will be changed as per declared rate of the bank. Pricing will be basically risk based. Higher price will be considered for riskier borrowers because of their higher risk involved (i.e. lower score obtained by an obligor as per CRG score sheet is called a risky client). Similarly lower price will be considered for prime clients on the basis of their low risk (Low risk grade clients means where and obligor obtained higher aggregate score as per CRG score sheet or 100% cash covered or govt./international Top bank Guarantee). In fixing interest rate cost of fund

& the prevailing rate in the competing market shall also be considered. Confessional interest rates to the deserving customers will be allowed within the declared interest rates band of the bank. Commission/charges on credit facilities will be realized taking the competing scenario in the banking market into account, involved risks in financing & overall policy of the bank.

Mode of disbursement:

In disbursing credit the bank ensures drawing for the purpose the loan has been sanctioned. Where required visit of the business/site etc. are suggested and all subsequent disbursements are made conditional to full utilization of disbursed money in the preceding phase. In case of disbursement of loan, money for acquisition of assets, payment is suggested after receipt of the assets by the borrower. For commercial lending, storage of merchandise against which facilities have been sanctioned is ensured either in shop/show room or in godown. Against LIM/pledge, godowinizing required stock is ensured.

Mode of Adjustment/Repayment:

For the borrower to exhibit capability to periodically adjust the drawings taken and as such to have idea regarding the rationale for continuation of the facility, adjustment mode is given. In term of lending, where revolving transaction is not allowed, adherence to adjustment stipulation (Monthly, quarterly, half yearly, yearly or other wise) is suggested to ensure recovery of the loan disbursed. By perusing adherence/non- adherence to the stipulated adjustment mode, status of the advances capability of the Borrower, how the account to be treated and course of action to be taken, etc. are decided.

6.9 Security:

Our bank mostly relies/will continue to rely on security based lending, taking into consideration, the character of the borrower, nature of business cash flow, environmental, economic, business and the influencing factors. In obtaining security primary and collateral security are suggested. Primary securities are valued on the basis of landed cont in case on imported goods/ex-mill or factory price/whole sale market price for the local goods.

Collateral security of acceptable type having adequate market/sale value is accepted. Collateral property is judiciously valued before accepting the same. The branch officials value the property by applying prudence and considering prevailing rate in the vocational area of the property. Our bank has some potential values engaged to assess the valuation of the mortgagable property. These appraisers assess the value of the property independently & submit the same to the bank directly. Assets in the form of good pledged as security are duly insured protecting the Bank’s interest. Good and machinery (for industry) taken as primary security are also insured.

Validity/Expiry/Maximum tenor:

         

Validity/Expiry date for continuous credit is set at a period not exceeding 1 year. Short-term loan mostly is allowed for trade/Commerce.

This expire date is virtually the date for adjustment/review of the facility, subject to periodical and satisfactory turn over of the limit. Conduct of the business during the whole of validity period determines the fate of continuation of the facility for the next period. Loans for short/medium/long term are also sanctioned depending upon the requirement there of and also on each flow generation, repayment capability and over all lending feasibility. Such loans are allowed for adjustment in installments.

Short term   : Up 12 months. 

Medium term                   : More than 12 months and up to 60 months.

Long term                       : More than 60 months.

Security and Support:

The following types of securities are generally accepted:

Machinery of factory/industry on hypothecation basis. Value of machinery is checked.

Raw materials, work in process, finished goods, stock in trade on hypothecation and pledge basis. Inventory is held in a warehouse/go down for financing against pledge under Bank’s control. Value of Inventory is checked.

Land and building of acceptable type and value, under registered mortgage.

Financial obligation (to be kept under line) after ascertaining its genuineness of issuance, ensuring marking of line of the lender bank on the instrument and obtaining confirmation form the issuing bank that encashment including even before maturity date will be allowed to the lender bank on request without referring to the instrument holder.

Bills receivable against work order/supply order duly assigned/supported by registered P.A. executed by the client fvg. the bank, confirmed by the work entrusting authority that the cheques/bills against the work shall be issued in the name of the bank A/C of the client.

Cars/buses/water crafts/vessels under hypothecation and joint registration.

Shipping documents as lien against LC.

Trust receipt (For LTR)

Export documents under line (For LDBP/FDBP)

Export LC/Contract under line (For PC)

Packing credit letter. (For PC)

Personal guarantee/cross-corporate guarantee.

Post dated cheques

1^st / 2^nd charge/ 1^st ranking pari passu  charge on fixed and floating assets of the limited companies finances.

Bank obtains authorization to debit client’s account in order to keep in force.

Quality of security:

Primary security having adequate market value is accepted.

Perishable good and seasonal goods are generally discouraged as premary security.

Acceptable financial obligations are preferred.

Receivable bills against work order/supply order funded by Foreign Agencies/which bear adequate funding arrangements are preferred.

Documents which are drawn in conformity with the export L/C terms (i.e. documents which do not have discrepancies are accepted for negotiation.

Personal guarantee of those persons having high net worth/assets, satisfactory commitment fulfillment track record and on connection with any irregular/classified advance are obtained.

Subordinated rank (in respect of financing) on fixed and floating assets of the companies proposed for financing is generally discouraged.

Land, Building having defect less title, chain of proper documents, adequate valuation and acceptable forced sale value, located under municipality / Municipal corporation / RAJUK/KDA/CDA important commercial centers are best choice for creating mortgage thereon. 3^rd party

Mortgage is backed by personal guarantee of the owner of the property. Property located outsides the above areas are also accepted as collateral, with out compromising with proper valuation proper K/KDA/CDA title, non-encumbrance sale possibility in requirement etc.

RAJU other govt. authority owned properly is mortgaged after getting NOC of the owning authority fvg. The allotee-mortgagor to mortgage the property against advance are also obtained.

In syndicated financing mortgage is executed on first ranking paripassu basis.

Legal Interest Protection:

Title searches are conducted periodically for collateral both with RJSC and land registrar for mortgages.

Collateral arrangements are detailed in credit proposal.

Bank’s legal adviser establishes the required legal documentation for a borrower’s legal standing and enforcement of the bank’s interest.

Bank’s legal adviser properly vets mortgage documents.

Registered mortgage of propertied by registered irrevocable general power of attorney to sell the property.

Bank has proper inventory of standard security documentation’s vetted by Legal counsel. Appropriate authority vets non-standard documentation’s.

Valuation of Collateral:

Credit administration department independently will control and match the value of cash collateral, which will be lined to the bank and against which borrowings are/will be allowed as per approval.

Value of Inventory and machinery supplied be client will be cross checked.

Credit administration department will ensure receivables that actually exist and that past due. Disputed and other items with impaired collateral value to be identified and removed from collateral pool.

Value is sourced from independent appraisals addressed to the bank.

Insurance:

Our bank having insurable interest on a property/an assed obtain insurance policy as per norms against credit facilities extended in order to protect our bank’s interest Insurance policy shall be taken covering all possible risks. Branches shall ensure that insurance policy is current and Renewed on a timely basis. Insurance shall be obtained from a reputed company.

General/Special conditions/Covenants:

General/Special conditions/Covenants will be according to be nature of advance, security arrangements, ownership pattern, mode of acquisition, institutional norms/ instructions, guides lines of the central bank/ regulatory authority.

Cross Border Risk:

The bank takes/will take care of analyzes the risks involved with Cross Border lending. Risks associated with import of a commodity is kept in mind which may basically take the form of failure of the foreign supplier to:-

Supply goods of specified standard and quality.

Supply the contracted goods timely.

These risks are tried to be handled by obtaining satisfactory credit report on the supplier before opening L/C. Track record of the exporter, past performance, capability of the seller to complete with the terms of sale purchase, timely shipment etc. are examined before opening L/C. Advance payment against import is avoided in order to avert credit associated risk. Risks involved in export deal in also taken care of. Capability of the consignee is when required ascertained by obtaining credit report on them. Here also past record past payment behavior, instances of payment refusal, instances of taking discount, freque4ncy of raising of objections of minor grounds and making delay in payments etc. are carefully perused and the results form the basis of proceeding properly avoiding risks associated with export deal. Besides. the country risks both of the importing & exporting countries are kept in view in respect of handling the import export deal.

6.10 CREDIT ASSESSMENT AND RISK GRADING

Credit Assessment:

A thorough credit and risk assessment is to be conducted before granting of loans, and once approved; all facilities are to be reviewed at least annually. Credit assessment will be presented, in a credit application duly signed/approved by the official of the branch. In case an account deviates from the guidelines the same should be identified in credit applications and the originating officials of the branch should provide justification for approval. Bank will conduct financial analysis on a regular basis and monitor changes in the client’s financial condition.

The proposals are prepared in proposal format that originates in the credit department of the branch and is processed and approved by the head of branch/Regional Head/Head office Management/Executive committee ass per delegated authority. At the time of originating a proposal accuracy of all information to be ensured. Originating officers shall follows credit principles, credit policy and guidelines and conduct due diligence on new borrowers, principals and guarantors. They will also adhere to the NBL’s established Know your customer (KYC), Money Laundering guidelines,

and Bangladesh Bank’s regulations. For initiating credit relationship credit officer/Relationship Manager will call on the client, visit factory/business transactions/reputation etc. and through these to assess possibilities of establishing a remunerative relationship. He/she will also conduct due diligence to get market information on the borrower from industry sources, competitors, local area Branch Manager may also be part of this process. In this regard if required that BM/Credit officer/Relationship Manager will also take help of Head officer Engineer/HO personnel for initial assessing credit needs of large borrowers. Based on findings of such call/visits/inspection, Relationship Manger (RM) Credit Officer (along with the Branch Manager) will initiate proposal, containing information on client’s background, business market share integrity credit exposure existing banking relationships and credit needs along with pricing loan structure (tenor, covenants repayment schedule) purpose of credit type of credit security arrangement etc.

Before sending proposal to the approving authority, the originating officials of the branch shall ensure that the following steps/formalities have been taken/completed properly and incorporated in the credit proposal appropriately:

Current CIB Report obtained

Repayment sources of the borrower has been justifiable established by financial analysis

Purpose and amount with types of loan proposed by the borrower stated in he proposal 

Earnings from the relationship properly assessed in the credit proposal

Per-sanction Inspection report/call report/site visit report is in place

Management profile and Capital structure, constitution, Date of Establishment are stated in the proposal.

Experience of Borrowers business skill, management and successions are properly mentioned in the proposal.

Borrower’s Rating in the Industry is assessed along with overall industry concerns and borrowers strength and weakness relative to its competitions are identified.

Industry’s position along with supplier and buyer risk is analyzed.

Borrower credit worthiness is established by review of 3 years historical financial statements and past track record.

Cash flow analysis justifying client’s ability to repay is reflected in the credit proposal.

Industry and business analysis is done in the proposal.

Credit facilities availed from other banks are clearly stated in the proposal and opinions are obtained regarding the credit standing of the borrowers.

Credit facilities are based on an evaluation of the borrower’s business needs.

Possible risks are identified in the credit assessment and risk-mitigating factors are clearly mentioned in the credit proposal.

Credit proposals clearly mention current outstanding against all limits.

Audited financials large loan positions etc. are reflected in the credit proposals.

Branches ensure that collateral has been properly valued verified and are managed.

Account conduct of the borrower and his allied concerns have been done.

Amount and tenors are justified based on the projected repayment ability and loan purpose.

Adequacy and the extent of Insurance coverage are assessed.

Policy compliance are clearly stated in the Credit Proposal.

Changes in pricing of facilities are highlighted in credit proposal.

Usage of borrowed fund is confirmed through financial statement analysis.

Borrowers risk grade has been done as per Bangladesh bank guidelines examined and approved by the authorized official and stated in the credit proposal.

6.11 CREDIT MEMORANDUM (CM)/CREDIT PROPOSAL

The Credit Memorandum (CM) Credit proposal should contain:

1.     Correct name of the borrower.

2.     Borrowers office, business show room and factory address with phone number.

3.     Account number and date of account opening.

4.     Nature of business.

5.     Constitution.

6.     Capital structure.

7.     Date of establishment of business date of incorporation.

8.     Date of commencement of business.

9.     Business Net worth.

10. Banking relationship history.

11. Name of Individual borrower/proprietor/Directors, status in the Co. % of share holding of ht directors in the co./firm. Age, percent (residential) and permanent address with phone number.

12. Management profile.

13. Personal Ned work of the individual/proprietor/directors.

14. Name percent (residential) permanent address. Personal net worth, A/C number, Business particulars status of liability/allied liability etc. of the guarantor.

15. Liability of the client/allied concerns with our and other banks.

16. Recycling/periodical adjustment of the existing credit facility during last 3 years.

17. CIB status.

18. Assigned risk grade.

19. Amount of facility (Existing + Proposed)- on one obligor basis.

20. Credit allowing capacity of our bank (as per Bangladesh bank single Exposure limit).

21.                        Facility Structure:-

1.     Nature

2.     Amount of Limit

3.     Purpose

4.     Margin/Equity

5.     Interest,  ‘Commission. Other charges

6.     Mode of repayment

7.     Validity/Expiry

22. Security:-

8.     Primary

9.     Collateral

10. Others

23. Cost of project (Where applicable):-

Land

Building

Other structures

Machinery

Others

24. Work in capital assessment/assessment of the requirement

25. Financial highlight.

Business performance of the client/allied concerns with our bank/other banks (last 3 years).

Import

Export

26. Earnings from the client (last 3 year) and projected earnings from the relationship.

28. Sales profitability (last 3 year) projected sales.

29. Important ration (where applicable)

30. Cash Flow

31. Experience of Borrowers, business skills management and successions

32. SWOT

33. Major 5 competitors

34. Possible risks and risk mitigating factors

35. Other terms, Conditions and Covenants.

6.12 RISK ASSESSMENT AREAS

Borrower Analysis:

Full particulars of the proprietor, partners, directors, etc. to be examined, their management capability to be ascertained. Overall performance and credit status of the allied concerns of the client i.e. group will be assessed. Laic of management capability of the co. concentration of the whole affairs of business is one hand and lack of initiative to create subsequent management line, complicated ownership structures of inter group transactions shall be addressed and related risks to be mitigated.

Industry Analysis:

Before extending credit in an area, over all business conditions of that area/sector will be critically examined, prospects and problems to be ascertained. Demand and supply of the concerned goods/services. Demand and supply gap, contribution of the borrower in meeting the gap, strength and weakness of the borrower and their competitors to be accurately assessed.

Sales concentration of the borrower, borrowers rating with competitors in terms of market share, prevalence of substitutes of the borrower to be properly identified.

Supplier/Buyer Analysis:

Lending decision will be preceded by an intensive analysis on whether the borrower depends on single or a very few customer or gets the supply of the raw materials/dealing items from a single supplier. Such sales and supply concentration will be given a very careful consideration because it will have significant impact on the future viability of the borrower.

Historical Financial Analysis:

An analysis of a minimum of 3 years historical financial statements of the borrower shall be presented. Where reliance is placed on a corporate guarantor, guarantor’s financial statements shall also be analyzed. The analysis shall address the quality and sustainability of earnings, cash flow and the strength of the borrower’s balance sheet.

Projected Financial performance:

Where term facilities (tenor more than 1 year) are proposed, borrower’s future/projected financial performance should be provided, indicating an analysis of the sufficiency of cash flow to service debt repayment. Loans should not be granted if projected cash flow is insufficient to repay debts. 

Account Conduct:

For existing borrowers, historic performance in meeting repayment obligations (trade payments, cheque, interest and principal payments etc.) shall be addressed. Credit debit summation, maximum-minimum balance, recycling and adjustment of the liability will be looked into which generally will back our renewal decisions.

Adherence to lending guidelines:

Credit proposals to be prepared in line with Bank’s lending Guidelines. A credit application/proposal will clearly mention whether or not the proposal complies with the banks lending guidelines A proposal that will not adhere to the bank’s lending guidelines will not be approved.

Mitigating Factors:

In credit assessment, possible risks, such as margin sustainability and or volatility, high debt load (leverage/gearing), over stocking of debtor issues rapid growth acquisition or expansion new business line product expansion, management changes or succession issues customer or supplier concentrations and lack of transparency or industry issues and their mitigating factors to be identified.

Loan Structure:

Amount and tenor of loan will be fixed justifiable depending on income generation prospect, projected repayment capacity and the purpose of the loan. Failure in properly perusing these factors especially allowing loan for excessively long period of more than what is really justified/required in the business, will expose the bank to risk and also to non-repayment by the borrower.

Security:

Our banks lending will generally be adequately securitized. Securities to be obtained will be acceptable, valuable easily marketable and defect less (in title). Valuation of security will be properly assessed. Security will comprise primary and collateral and will be adequately insured (where applicable).

Name Lending:

Lending depending only on the fame and reputation of a borrower will be avoided. All associated risks lending fundamentals and a through financial analysis will be made.

Credit Risk Grading (CRG)

                                         

CHAPTER SEVEN

                            PERFORMANCE EVALUATION

This branch’s Performance has been analyzed in five sectors 

        A. Advance deposit analysis

        B. Income expenditure and profit analysis

        C. Liquidity analysis

        D. Per employee analysis

        E. Classified and recovery analysis

        F. Credit approval process

Advance deposit analysis

7.1 Deposit:

It is the largest source of Bank fund. Last four year deposit position is as below

Kinds / Years	2003	2004	2005	2006	2007
Current deposit	253.78	307.52	320.52	228.35	317.74
Sundry deposit	250.07	162.61	201.72	116.38	702.84
Savings	972.88	986.24	1093.62	1209.97	1262.13
STD	977.67	2587.50	3619.21	966.30	3485.77
MSS	245.96	198.54	339.30	385.13	449.28
NMS	……….	……….	8.49	178.53	432.06
SDS	184.30	173.20	162.70	156.85	47.00
FDR	8658.34	9215.89	9458.08	6719.34	7347.75
RFCD	………	………	.22	0.15	.11
Total	11543.00	13731.50	15203.94	9998.49	14137.72

Source: Statement of affairs

Comment:

This table shows that deposit are growing up that means this branch has acquired client’s faith and satisfaction.

Statement of deposit mix                                                     Figure in lakh

Types	2003	2004	2005	2006	2007
No cost	503.85	470.13	522.54	344.35	317.74
Low cost	1950.55	3573.74	4712.83	2176.27	3485.77
High cost	9088.60	9687.63	9968.57	7440.00	7347.75
Total	11543.00	13731.50	15203.94.	9998.49	14137.72

Source: Statement of affairs

Statement of deposit mix (in percentages)

Comment:

This branch collects most of the deposits from high cost deposit. If it has long-term advance opportunity then this mix is good, otherwise it has to bear excess interest expenses. This branch does not follow standard deposit mix. Out of last four years the deposit mix of 2007 is better than other years.

7.2 ADVANCE

Last five-year advance position

Kinds / Years	2003	2004	2005	2006	2007
Loan	10.34	9.06	6.13	6.13	6.13
House Building	17.48	20.62	11.24	24.48	51.77
SOD	278.34	197.99	288.16	465.35	319.44
Car loan	1.94	1.11	5.62	1223.425	3.52
CCS	38.51	36.44	22.97	17.63	4.29
Cash credit	1013.06	1260.19	2056.00	2588.54	1543.29
Total	1637.96	1833.46	2756.34	4839.50	2613.73

Source: Statement of affairs

7.3 Deposit and advance ratio

            This table shows percentages of advance distribution from deposit.

Year	Advance	Deposit	Percentages	Remark
2003	1637.96	11543.00	14.19%
2004	1833.46	13731.50	13.35%	Lowest
2005	2756.36	15203.94	18.12%
2006	4839.50	9998.49	48.48	Highest
2007	2612.73	14137.73	18.48%

Deposit conversion to advance rate is not satisfactory of this branch

Last five-year excess of deposit from advance:

Year	Deposit	Advance	Excess of Deposit
1	2	3	(2-3)
2003	11543.00	1637.96	9905.04
2004	1373.50	1833.46	11897.54
2005	15203.94	2756.36	12447.60
2006	9998.49	4839.50	5158.99
2007	2612.73	14137.73	18.48%

Comment:

 Above analysis shows that deposit is growing rapidly but amount of advance is not satisfactory. Huge different between deposit and advance, large amount of excess of deposit cannot be utilized by this branch properly. So we can say that advance creation’s and ability is limited in this branch. The Bank has to transfer excess of deposit to head office.

7.4 Operating profit of total deposit ratio:

These ratio measures how efficiently does the manager use their deposit.

                                                                                         Figure in lakh

Year	Operating profit	Deposit	Ratio	Remark
2003	115.04	10062.96	1.14%
2004	120.44	11543.00	1.04%	Lowest
2005	207.66	13731.50	1.51%
2006	171.61	15203.94	1.13%
2007	357.12	9998.49	3.57%	Heights

Operating ratio:

Operating profit of operating expenses ratio:

Year	Operating profit	Operating expenses	Ratio	Remark
2003	115.04	119.92	95.93%
2004	120.44	127.45	94.49%	Lowest
2005	207.66	134.94	153.89%	Heights
2006	171.61	157.23	127.21%
2007	357.12	546.88	144.65

Comment:

This table shows relation between operating profit and operating expenses. In 2003 and 2004 one taka operating expenses cannot be able to earn one taka operating profit. This branch also bears high among of operating expenses.

Last five average income of advance rate and cost of fund rate:

Year	2003	2004	2005	2006	2007
Yield of advance	12.96%	13.27%	13.15%	12.62%	13.15
Cost of fund	7.55%	8.80%	7.74%	7.51%	8.11
Difference	5.41%	4.41%	5.41%	5.11%	5.04

Liquidity analysis

Year	Liquid assets	Liquid liability	Ratio	Remark
2003	2782.10	5278.42	.53:1
2004	1893.32	4208.43	.45:1	Lowest
2005	1716.63	2514.76	.68:1	Highest
2006	1768.58	2895.71	.61:1
2007	1795	2875.54	.6.5:1

Source: Statement of affairs

Comment:

Standard rate is 2:1. This branch is not maintaining the standard but it will not be a problem for this branch because if this branch faces deficit of fund, it will bring fund from head office. Excess of liquidity is harmful for profits bank should forecast its need of fund and should maintain minimum level of liquidity.

D. Per employee analysis:

Number of employee (last five years)

Year	2003	2004	2005	2006	2007
Number of employee	30	30	28	31	30

Per employee analysis:

Item	2003	2004	2005	2006	2007
Per employee revenue	23.81	35.88	46.81	22.27	42.46
Per employee profit	3.60	4.01	7.16	1.09	6.58
Pre employee deposit	316.35	384.76	452.07	493.11	439.87
Per employee advance	53.62	54.56	56.83	74.74	52.11

          Performance evaluation of NBL, Rajshahi Branch for the last five year number of current Account holder and its growth rate are shown below:

Year	Number of current account	Growth rate
2003	1225	-23.00%
2004	1305	6.53%
2005	1340	2.68%
2006	829	-38.13%
2007	941	11.69%

Comment:

          The above table shows that the number of current account is not consistent. And the number of current A/C is 941 in the year 2007 that was lowest figure over the last five years.

7.5.1 Performance evaluation of NBL, Rajshahi Branch for the last five year saving account holder and its growth rate are shown below.

Year	Number of saving account	Growth rate
2003	3475	18.80%
2004	3675	5.75%
2005	3260	-11.29%
2006	2928	-10.18%
2007	3117	6.45%

Comment:

           This figure indicates that the number of saving account was not demonstrated over the last five years and the number of saving account in 2007 is 3117, which is relatively higher than the previous year (2006). This indicates that peoples are interested to invest in the saving account.

7.5.2 Performance evaluation of NBL, Rajshahi Branch on the basis of amount of deposit:

The amount of deposit position of NBL Rajshahi Branch for the last five years deposit and its growth rate are shown below:

Figure in Lakh

Year	Amount of deposit	Growth rate
2003	11543.00	14.71%
2004	13731.50	18.96%
2005	15203.94	10.72%
2006	9998.49	-34.23%
2007	14137.72	41.39%

Comments:

The above table shows that the amount of deposit was increasing yearly. This indicates that the performance of NBL Rajshahi Branch is satisfactory.

7.5.3 Performance evaluation of NBL, Rajshahi Branch for the last five years investments:

The amount of investment and growth rate position of NBL, Rajshahi Branch for the Last five year are given in the following table:

Figure in lakh

Year	Amount of investment	Growth rate
2003	1712.77	Non
2004	1637.96	-4.36%
2005	1833.46	11.93%
2006	2756.34	50.33%
2007	4839.50	75.57%

Comments:

This tale shows that the amount of investment position of NBL, Rajshahi Branch increasing for the last five year except in the year 2007. The investment of NBL, Rajshahi Branch in 2007 is Tk. 4839.50 (figure in lakh). It means that the Branches investment growth is well.

7.5.4 Performance evaluation on the basis of various kind of Ration analysis:

          To evaluate a branch financial condition and performance, The analyst needs to perform “checkups” On various aspect of firms financial health. A tool frequently used during there checkups is a performance ratio,

which relates two types of financial data by dividing one quantity by another.

          There fore, I have tried to find some of the key performance ratio, based one year 2003 to 2007 year.

1) Return on asset (ROA) =        

Year	2003	2004	2005	2006	2007
Return on Assets	.32%	.18%	.35%	.49%	.76%

Comments:

Return on assets (ROA) is an indication that primarily indicates low capably the management of the bank has been converting its institutions assets into earnings.

Here NBL, Rajshahi Branch (ROA) for the year 2003, 2004, 2005, 2006, 2007was respectively. 325%, 18%, 35%, 49%, and 76%. Thus, we can say

that branch’s net earnings against its total asset were positive and increase continuously. It indicates the better management efficiency of this branch for those years. That is the branch best achievement.

2) Net Interest Margin (NIM) =    

        

Name            Year	2003	2004	2005	2006	2007
Net interest margin (NIM)	-2.94%	-5.34%	-5.02%	-4.23%	-6.29%

Source : Statement affair.

Comments :

 Net interest margin is an indicated of profitability measures. Indicating well management and staff have been able to keep the growth of revenues against rising costs. The net interest margin measures how large a spread between interest ravenous and interest cost management which is achieved by close control over the banks earnings assets and the purist of the cheapest sources of funding. Fro a standard business organization it should be positive. But we see that the performance of NBL. RB is negative that means its performance is not up to the mark.

3) Net Non-Interest Margin (NNIM) =

        

    

Name           Year	2003	2004	2005	2006	2007
NNIM	3.84%	6.72%	7.17%	6.05%	6.45%

Source: Statement affair.

Comments:

 That net-non-interest margin is an indicator to measure the performance of the financial organization especially bank which is stemming from deposit service changes and other service fees that the bank collects by increasing non-interest costs. For a standard organization the ratio should be positive. From the above table we see that the performance of NBL. RB is positive in the year 2007. That shows its performance is better.

4) Net Bank operating margin =

        

    

Name                 Year	2003	2004	2005	2006	2007
NNIM	0.44%	0.87%	1.31%	0.95%	2.8%

Source: Statement affair.

Comments:

The net bank-operating margin is an efficiency measures as well as profitability measures indicating how well management and staff have been able to keep the growth of revenues against rising cost. From the above calculation we find that net bank operating margin of this branch in the year 2003, 2004, 2005,2006 and 2007 was respectively. 0.94%, 0.87%, 1.31%, 0.95% and 2.86%. Therefore, we can say that branches net operating earnings against its total assets were positive and increase year to year. It indicates the better management capability of this branch for those years, especially in 2007.

9) Loan to assets ratio =    

Name Year	2003	2004	2005	2006	2007
Loan to assets ratio	14.10%	11.89%	11.54%	15.29%	38.81%

Source: Statement affair.

Comments:

 Loan to assets ratio presented in the above table shows that in the year 2007 this ratio was 38.81% which is the highest among the last five years. This indicate that NBL, RB provides the highest amount of loan and advance in the year 2007 than the last four years. Loan to assets ratio should be higher for a standard bank. Because higher loan to assets ratio indicates more loan and advance of the Branch.

                                 CHAPTER EIGHT

PROBLEMS, RECOMANDATION AND CONCLUSION OF

NBL, RAJSHAHI

8.1 Problems of this branch:

This branch disburses only business loan, so loan creation scope is limited.

Operation expenses are high.

Huge difference in between deposit and advance. This branch Deposit cannot utilize properly for advance.

Do not maintain standard deposit mix.

Loan recovery rate is not satisfactory.

Do not follow business promotion/advertisement activities

Return on assets in not satisfactory.

8.2 Recommendation:

Proper utilization of manpower

Improving customer services

Removing political involvement

Reducing unprofitable activities

This branch should disburses different purpose of loan

Reduce operation expenses

Improve loan sanction and loan recovery process

To protect competitor Bank should follow business promotion/advertisement activities.

By increasing deposits in current account and STD accounts

          By increasing commission. 

By increasing business loans, ICS loans, Overdraft, Consumer loans, Working capital loans, Agro based industries loans.

8.3 Conclusion:

National Bank, Rajshahi branch is one of the oldest private banks in Rajshahi. This branch is operation its business with good fame and well organizational structure. This branch’s performance is satisfactory because the analysis shows that loan creation, deposit collection; profit rate, business activities are increasing year by year. But this branch has to concentrate on scope of loan, loan recovery, deposit convert to loan rate, operating expenses, deposit mix etc.

This branch is able to handle the high competition strongly because more than forty banks are working in Rajshahi city and every year new banks join this competition.

The performance of this branch is going forward and expands its business activities throughout the country. But this performance is not the best so this branch should find out the problem, identify the opportunities and take proper policy to achieve excellent performance. Problem and opportunity has been observed during analyzing period, which is given below, and it also mentions recommendation to over come this problem.

                                    BIBLIOGRAPHY    

1.     Annual report of National bank ltd.-2007

2.     Statement of affairs, National bank ltd.-2003-2007

3.     www.nblbd.com.www.nblbd.com

4.     Weirich Heinz & Koontz Harold, “Management” 10^th Edition, McGraw Hill. Inc.

5.     Money and Banking: Md. Abdul Hamid.

6.     “Decenzo David A”. & “Robbins, Stephen P”. -Human Resource Management, 7^th edition. John Wiley & Sons, Inc.

7.     Chase& Acquilano “Operations Management”

8.     Krajewski. Lee, J& Ritzman,  Larry P. “Operations Management” 6^th Edition, Pearson Eucation.

9.     Banking Theory and Practice: K.C. Shekher.

                                   QUESTIONNAIRE

1.     What is the historical background of National bank Ltd. Rajshahi Branch?

2.     What are the objectives of National bank Ltd. Rajshahi Branch?

3.     What is the board of directors of NBL?

4.     What are the sources of capital?

5.     What is the organization structure of National bank Ltd. Rajshahi Branch?

6.     How many departments are available in National bank Ltd. Rajshahi Branch?

7.     Is there any department for Human Resource?

8.     What is the perspective plan for Human Resources?

9.     Is there any Training Institute in NBL?

10. What are the systems of bank management?

11. When was the National bank Ltd. Rajshahi Branch established?

12. What are the accounting systems of National bank Ltd. Rajshahi Branch?

13.                        What are the relationship between client and NBL?

14. What are the recent planning programs of National bank Ltd. Rajshahi Branch?

15. What are the deposit categories in National bank Ltd. Rajshahi Branch?

16. What are the credit categories in National bank Ltd. Rajshahi Branch?

17. What are the interest rates against deposits and loans?

18. How national bank manage loan and liquidity?

19. Which type s of credit is more popular for National bank Ltd. Rajshahi Branch?

20. What are the loan disbursement procedures of National bank Ltd. Rajshahi Branch?

21. What procedure of recruiting does National bank Ltd. Rajshahi Branch?

22. What is the promotion policy of National bank Ltd. Rajshahi Branch?

23. What are the financial conditions of National bank Ltd. Rajshahi Branch?

24. What is the performance of National bank Ltd. Rajshahi Branch last five years?