Introduction Part

Chapter- One

1
1.1 Introduction

The present world is the ultimate and definite result of successful trade, finance and business.
To conduct the successful trading system, the world is going ahead time to time. To learn the
successful trade, commerce and business policy the educational institutions are not also
behind. Day by day they are offering more and more courses to learn the successful business
policy deeply. As a result, the IUBAT also offered the course BUS - 490 to its students of
Bachelor of Business Administration(BBA).
So, Practicum is an important part of BBA program in International University of Business
Agriculture and Technology (IUBAT). This program is three month duration. This program is
actually structure of academic and professional life dealings. For coordinating our internship
I have placed in Jamuna Bank Limited, Uttara Branch. There are 05sections in Uttara branch.
They are 1) Accounts opening 2) Clearing 3) Cradit 4) Cash 5) Deposit. Accordingly I
worked in the Accounts opening, Cash, Clearing and Loan sections, particularly in the SME
Loan section under the supervision of E.O & Operation Manager, senior officer and trainee
officer. I always try to devote my utmost effort and attention to learn the banking functions.
The report attempts to identify the SME Loan and the topic of the report has been chosen as
Analysis of SME Loan of Jamuna Bank Limited, Uttara Branch.

The report divided into four Chapters. 1) Introductory Part 2) Organizational Part 3) Actual
Task Part 4) Project Part. In the organizational part I designed a brief overview of the
organizations background, history, functions, business philosophy, ownership pattern, foreign
correspondents and overseas operations and benefits provided to customers by the
organization. And will describe the SME Loan, Loan provides to client and Loan process,
profit growth etc.

2
1.2 Origin of Report

I prepared this report as a part of fulfillment of my practicum which is an integral part of the
BBA program under the department of Finance and Banking in the faculty of College of
Business Administration of (International University of Business Agriculture and
Technology). This subject is 9 credit hours course and duration is three months. This report
is prepared for Prof. Dr. M AlimullahMiyan, Chair, CBA and IUBAT. The main objective to
do internship is gathering practical knowledge before beginning the job career. As an intern, I
worked in Jamuna Bank Ltd, Uttara Branch for three months. And during my internship
period I got the opportunity to perform different task related with general banking activities
specially SME Loan of the Jamuna Bank Ltd, Uttara Branch and these broaden my own
perception about the operation of the Bank.

1.3 Statement of the Problem

This study mainly focus on the opportunities, possibilities and limitations of SME Loan
section in Jamuna Bank Limited, Uttara Branch and I have been facing the lacking of
unavailability of data, incompatibility of collected data from different sources.

1.4 Purpose of the Study

The main purpose of writing this report is to know about the SME Loan Procedure and
Prospect of Jamuna Bank Limited, Uttara Branch. And also mention the financial
performance, current performance and overview of Jamuna Bank Limited.

1.5 Significance of the study

The significant of this study is important, because from this analysis readers can know about
SME Loan Procedure of Jamuna Bank Ltd. It is well defined that SME Loan play a great role
to our economy and many people can changes their life by having SME Loan. JBL focused

3
on all key areas covering advance, clearing, foreign exchange, deposit, cash, accounts, and
SME Loan with the competitive commercial demand of time. So management of SME Loan
in banking is a major fact of this report. All these information, which are included in this
report, will help the management to identify various scopes and limitations of the bank. So it
is very needed to focus SME Loan carefully.

1.6 Objective of the report

This report emphasizes the importance of loan, advances and its procedures in the context of
SME Loan of the commercial bank in Bangladesh along with the conditions of the Jamuna
Bank Limited. The objectives behind this research paper are pointed below:

1.6.1 Broad Objectives:

The broad objective of this report is to find out the opportunities, possibilities and limitations
the SME Loan department and its management.

1.6.2 Specific Objectives:

To know about Jamuna Bank Limited.

To know about SME Loan of JBL.
To know about General banking of Jamuna Bank Limited.
To know about the SME Loan in Jamuna Banks.
To find out opportunity of SME Loan department of JBL
To know about activities of SME department of JBL.
To know about the SME Loan and its interest rate of JBL.
To find out the limitation of SME Loan department of JBL.
To find out the possibilities of SME Loan department of JBL.

4
1.7 Scope of the Report

Under this internship program each student has to prepare a report on the particular topic
related with the organization. According to this requirement, I have already completed my
internship program from JBL, Uttara Branch. I have completed the report regarding
Analysis of SME Loan of Jamuna Bank Limited, Uttara Branch. In this credit department
specially discuss SME Loan disbursement and recovery process along with general banking
activities. The study has covered a curtail idea on JBL, taking proposal of SME loan,
analyzing credit and performing activities for sanctioning loan by SME department of JBL.
This will eventually refer that how the bank help customers securing their cash and assets,
getting credit facility, repaying loan amount and banks regulatory compliance, lending
policy etc.

1.8 Limitations

To prepare this report I face some limitation to make the best output. If I am not supported to
deal with these challenges I would not make it a better one.

People did not give 100% information.

Lack of Supervision by the bank officers
The respondents were not egger to reply accordingly
To collect primary data from different field I also faced some problem like
transportation, financial problem etc.
Another problem that secondary data was not too much available.
Every organization has their own secrecy that is not open to others.
Non-availability of some preceding and latest data.
Also I faced time limitations because 3 month was not enough to prepare this report.

1.9 Methodology

Methodology includes direct observation, face-to-face discussion with officers or employees

of different departments, study of files, circulars, etc. and practical work. In preparing this
report, both primary and secondary sources of information have been used and to analyze
those data Excel have been used.

5
Sources of the Report:
The following sources were used for the purpose of gathering and collecting data are given
below-

1.9.1 The primary sources are-

Direct communication with the clients.
Structured questionnaire.
Exposure on different desk of the bank.

1.9.2 The secondary sources are-

Annual Report of Jamuna Bank Limited.
Different reports and journals published by Jamuna Bank Limited.
Periodicals published by the Bangladesh Bank.
Brochures and leaflets of the bank.
Relevant books, Research papers and Newspapers.
Web side of the bank.

6
Organizational Part
Chapter- Two

7
2.1 The bank
Banking industry is one of the promising industries of our country. There are different types
of banks such as; Commercial Bank, Agricultural Bank, Industrial Bank, Saving Bank and
Exchange Bank. But when we use the term Bank without any prefix, or qualifications, it
refers to the commercial banks are the primary contributors to the economy of a country.
The Bank provides all types of support to trade, commerce, industry and overall business of
the country. Jamuna Bank Ltd., the only Bengali named 3rd generation private commercial
bank, was established by a group of local entrepreneurs who are well reputed in the field of
trade, commerce, industry and business of the country. The operation hour of the Bank is
10:00 A.M. To 6:00 P.M. from Sunday to Thursday with transaction hour from 10:00 A.M. to
4:00 P.M. The Bank remains closed on Friday, Saturday and government holidays.

2.2 Background of JBL

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act,
1994 with its Head Office Chini Shilpa Bhavan (2nd, 3rd, & 8th floor), 3 Dilkusha C/A; Dhaka-
1000.The bank started its operation from 3rd June 2001. Jamuna Bank Limited is a highly
capitalized new generation Bank with an Authorized Capital and Paid-up Capital of Tk.10000
million and Tk. 5,160.67 million respectively. The Paid-up capital has been raised to 840
million and the total equity of the bank stands at 8325 million as on December 31, 2012.

Jamuna Bank Ltd. the only Bengali named new generation private commercial bank was
established by a group of winning local entrepreneurs conceiving an idea of creating a model
banking institution with different outlook to offer the valued customers, a comprehensive
range of financial services and innovative products for sustainable mutual growth and
prosperity. The sponsors are reputed personalities in the field of trade, commerce and
industries. The Bank is being managed and operated by a group of highly educated and
professional team with diversified experience in finance and banking. The bank gives special
emphasis on export, import, trade finance SME finance Retail credit and finance to woman
Entrepreneurs.

8
2.3 Current Situation & Performance

Jamuna Bank has now in total of 93 branches as on November, 2014. At present the Bank has
real-time Online banking branches (of both Urban and Rural areas) network throughout the
country having smart IT-backbone. Besides traditional delivery points, the bank has ATMs of
its own, sharing with other partner banks and consortium throughout the country.JBL also
gives the Locker Services.

2.3.1 Journey with New Logo

JBL has passed a successful year 2013 through generating highest business growth in terms
of profit and also set superior service delivery for its customers through implementation of
real time on line state of-the-heart banking technology. In its journey towards excellence in
2014 the bank has decided to change its logo.

2.3.2 Corporate slogan

Your Partner for growth.

9
2.4 Strategic Posture

2.4.1 Mission of JBL

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

2.4.2 Vision of JBL

To become a leading banking institution & to play vital role in the development of the
country & service so that sustainable growths, reasonable return & contribution to the
development of the country can be ensured with a motivated & professional work force

2.4.3 Values of JBL

Customer Focus
Integrity
Quality
Teamwork
Respect for the individual
Harmony
Fairness
Courtesy
Respectable Citizenship
Business Ethics
Unique Culture

10
2.4.4 Objectives of JBL

To increase direct contact with customers in order to cultivate a closer relationship

between the bank and its customers
To promote organizational effectiveness by openly communicating company plans,
policies, practices and procedures to employees in a timely fashion
To strive for customer satisfaction through quality control and delivery of timely
services.
To cultivate a working environment that advanced positive motivation for improved
performance
To train and develop all employees and provide them adequate resources so that
customers need be reasonably addressed
To manage and operate the Bank in the most efficient manner to enhance financial
performance and to control cost of fund

2.5 JBL Bank Profile

Name of the Company Jamuna Bank Limited (JBL) .

Status Private Limited company

Corporate Slogan Your Partner for growth.

Commencement of 3rd June 2001

operation

Nature of Business Banking Business with different financial

services/products.

Authorized capital Tk.10,000 million

Paid up capital Tk. 5,160.67 million

Number of Branches 93

Number of employees 2206

Number of ATM Booth 167

Table 1: JBL Bank Profile

11
2.5.1 Contact Information:

HEAD OFFICE
Jamuna Bank Limited
Chini Shilpa Bhavan, 3 Dilkusha C/A,
Dhaka-1000
Bangladesh
Phone: 9570912, 9555141
SWIFT: JAMUBDDH
E-Mail: info@jamunabank.com.bd
URL: jamunabankbd.com

12
2.5.2 Branch & ATM network:

The bank has a network of 93 branches as on 31.11.14 strategically located in different cities
and even in the small towns also. All the branches are functioning in computerized
environment. The opening of branches has strength the networks add opened opportunity for
growth. JBL have 93 existing branches. The Bank has 167 ATM booths throughout the
country and its increasing day by day. Although the bank has limited ATM booth, it has made
a system of Cash system from the 660 ATM booths of other bank also which helps the clients
a lot. So they become able to draw their money and get the cash within a very few minutes
also if they are far from the branch.

At present, 93 (Ninety Three) branches are in operation all over the country. The Division
wise Branch distribution are given below:

Division-wise Branch distribution

Division Total Branch

Dhaka 47
Chittagong 21
Rajshahi 10
Sylhet 5
Khulna 6
Rangpur 4
Total 93

Table 2: Division-wise Branch distribution

2.6 Capital structure

Capital structure of Jamuna Bank Ltd. is as under:

1. Authorized capital
(Tk 10,000.00 Million ordinary shares of Tk. 10 each)

2. Paid up capital
(Tk 5,161.00Million ordinary shares of Tk. 10 each)

The directors may revise the capital structure from time to time according to need.

13
2.6.1 Financial Highlights: ( TK in Millions)

Particulars 2010 2011 2012 2013

Authorized Capital 10000.00 10000.00 10000.00 10000.00

Paid-Up Capital 2230.09 3648.40 4487.54 4487.54

Total Shareholders Equity

6408.19 7281.51 8324.83 8880.94

Total Deposit 60673.56 70508.05 79623.13 97485.61

Loan 10891.02 16314.93 39118.93 31392.20

Foreign Exchange Business 102894.90 113836.40 126549.30 117001.80

Total Operating Income 3746.25 4868.29 5285.12 5635.66

Total Operating Expenses 1335.61 2046.89 2078.22 2666.75

Profit Before Tax

2066.52 2470.01 2080.52 2284.89

Net Income
1481.00 1795.44 1839.20 949.83

Total Assets
70013.90 87065.13 109678.51 115681.64

Number of Employees
1511 1786 2006 2206

Earning Per
Share(EPS) 2.92 3.65 2.32 2.53

Number of Branches
66 73 83 91

Source: (www.jamunabankbd.com)
Table 3: Financial Highlight

14
 2.6.2 Return on Loan:

Return on Loan(ROI) = Net Income / Total Loan

2010 2011 2012 2013

Net Income 1481.00 1795.44 1839.20 949.83

Total Loan 10891.02 16314.93 39118.93 31392.20

ROI Ratio 13% 11% 4.70% 3.03%

Table 4: Return on Loan (ROI)

ROI
13 %

11%

4.70%

3.03%

2010
2011
2012
2013

Figure 1: Return on Loan (ROI)

2.6.3 Market Share:

The market share of JBL is 516066711 ordinary of Tk. 10 each.

15
 2.6.4 Profitability Ratio:

Among the most important Ratio measures of Profitability, I used the following:

Return on Assets (ROA) = Net Income / Total Assets

2010 2011 2012 2013

Net Income 1481.00 1795.44 1839.20 949.83

Total assets 70013.90 87065.13 109678.51 115681.64

ROA Ratio 2.11% 2.06% 1.68% .82%

Table 5: Return on Assets (ROA)

ROA

2.11%
2.06%

1.68%

.82%

2010
2011
2012
2013

Figure 2: Return on Assets (ROA)

16
 Return on Equity Capital (ROE) = Net Income / Total Equity
Capital

2010 2011 2012 2013

Net Income 1481.00 1795.44 1839.20 949.83

Total Equity 6408.19 7281.51 8324.83 8880.94

Capital

ROE Ratio 23% 24.66% 22.09% 10.70%

Table 6: Return on Equity Capital (ROE)

ROE
24.66%
23%
22.09%

10.70%

2010
2011
2012
2013

Figure 3: Return on Equity (ROE)

17
 Net Profit Margin (NPM) = Net Income / Total Operating Revenue

2010 2011 2012 2013

Net Income 1481.00 1795.44 1839.20 949.83

Total Operating 3746.25 4868.29 5285.12 5635.66

Revenue

Net Profit Margin 39.53% 36.88% 34.80% 16.85%

Table 7: Net Profit Margin (NPM)

NPM
39.53
36.88%
34.80%

16.85%

2010
2011
2012
2013

Figure 4: Net Profit Margin (NPM)

18
 Net Operating Margin = ( Total Operating Revenue - Total Operating Expenses) / Total
Assets

2010 2011 2012 2013

Total Operating 3746.25 4868.29

5285.12 5635.66
Revenue

Total Operating 1335.61 2045.89

2078.22 2666.79
Expenses

Total Assets 70013.90 87065.13 109678.51 115681.64

Net Operating 3.44% 3.24%

2.92% 2.57%
Margin

Table 8: Net Operating Margin

3.44%
NOM
3.24%
2.92%
2.57%

2010
2011
2012
2013

Figure 5: Net Operating Margin

2.7 Corporate Governance

Corporate governance is a fundamental part of the culture and business practice of JBL,
which is directed and controlled by the board of directors and who are responsible for
ensuring the management, maintains a system of internal control to provide assurance of
effective and efficient operations, internal financial controls with laws and regulations. The
board is also the decision- making body for all other issues. The following members are the
JBL Board of Directors

19
 2.7.1 Board of Directors:

SL. Name Designation

1 Mr. Shaheen Mahmud Chairman

2 Engr. A. K. M. Mosharraf Hussain Director

3 Engr. Md. Atiqur Rahman Director

4 Mr. Golam Dastagir Gazi, Bir Protik Director

5 Mr. Fazlur Rahman Director

6 Al-Haj Nur Mohammed Director

7 Mr. Md. Tajul Islam Director

8 Mr. Sakhawat, Abu Khair Mohammad Director

9 Al-haj Md. Rezaul Karim Ansari Director

10 Mr. Md. Belal Hossain Director

11 Mr. Md. Mahmudul Haque Director

12 Mr. Kanutosh Majumder Director

13 Mr. Md. Sirajul Islam Varosha Director

14 Mr. Gazi Golam Murtoza Director

15 Mrs. Tasmin Mahmud Director

16 Mr. Md. Hasan Director

17 Mr. A. S. M. Abdul Halim Independent Director

18 Mr. Narayan Chandra Saha Independent Director

19 Mr. Chowdhury Mohammad Mohsin Independent Director

20 Mr. Md. Rafiqul Islam Independent Director

21 Mr. Shafiqul Alam Managing Director

Figure 6: Board of Directors

20
2.7.2 Corporate Structure
CHAIRMAN

Board of Directors Chief Advisor

Managing Director
Additional Managing Deputy Managing Director
Director (AMD) (DMD)

Senior Executive Vice President (SEPV)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Senior Assistant Vice President (SAVP)

Assistant Vice President (AVP)

First Assistant Vice President (FAVP)

Jr. Assistant Vice President (JAVP)

Senior Executive Officer (SEO)

Executive Officer (EO)

First Executive Officer (FEO)

Officer

Probationary Officer (PO)

Figure 7: corporate structure

21
2.7.3 Corporate Overview of JBL:

Corporate Banking of Jamuna Bank Limited offers customized corporate banking solution for
both its local Business Houses as well as Multinational Companies. The axiom of JBLs
Corporate Banking services is to nurture Relationship Banking by maintaining strong
relationship with premier corporate business houses of the country providing their
requirement based financial and other banking services. JBLs Corporate Banking Division is
well equipped with skilled and experienced personnel who have vast exposure in this area
and who being Relationship Managers maintain one to one relationship with all corporate
business houses having relationship with the Bank. Relationship Managers are relentless in
meeting the exact need and any emergency requirement of the corporate customers.

Corporate Banking business envelops a broad range of businesses and industries. You can
leverage on the know-how in the following sectors mainly:

Spinning
Textile
Garments
Garments Accessories
Iron & Steel
Cement
Building Materials
Furniture & Furniture materials
Edible Oil
Food & Beverage items
Various Trading
Ship Building
Ship Breaking
Infrastructure Building & Construction
Electronics & Electrical Equipments
Agro & Agro Products
Transport
Real Estate
Telecommunication

22
2.7.4 Corporate Resource:

The organization activities depend on organization Marketing, Finance, Human Resource and
Information System (IS) departments. So, all departments are responsible to increase the
organizations activities and performance.

2.7.4.1 Marketing Activities:

JBL has done so many promotional works. They have used print advertisements in
newspapers. They have also broadcasted many programs in television to promote themselves.

2.7.4.2 Human Resource:

Human resource is the most valuable asset for the bank. Bank plans to hire, develop and
retain the human resource base with the right level of skills and talent to meet current and
future challenges. The employees of the bank are given on the job training and sent to
different training program, seminar and workshop at home and abroad. Jamuna Bank Limited
(JBL) try to create a mutual trust and dignity and its Loan in Human resource development is
key to sustainable profit.

2.7.4.3 Information Systems (IS):

JBL continues to boldly expand its reach offering service and convenience to a wider
customer base. In the backstage of this expansion is the relentless support of JBL ITs. It is
committed not only to support and maintain JBL continuously expanding network and
delivery channels but to exploring and adapting new technologies in order to continuously
improves and enhances internal and external services to excel in a fast-paced and
competitive industry. It has carried out a number of projects and enhancements in 2013.

2.8 Products & Services offering JBL

Online Banking System

Money gram
ATM
Pay order
Demand Deposit
Debit Card
Credit Card

23
 Visa Card
Easy Loan
Gold Grace
Islamic Banking facilities
Foreign exchange
Remittance
SME Banking
Retail Banking
Locker service
NRB Banking
Special Scheme Deposit
Pension Scheme Deposit
Fixed Deposit
Deposit Schemes
Import and Export handling and Finance
Loan Syndication
Project Finance
Loan Banking
Lease Finance
Mutho Banking (mobile banking solution)
Personal Loan for Woman
24-hours Banking: Q-Cash ATM facility

2.9 Jamuna Bank uttara Branch

The 37th branch Uttara my working branch where I have joined to complete our internship
program started its operation on 2nd December 2008 .Vice Chairman Kanutosh Majumder,
Jamuna Bank Foundation and Audit Committee Chairman Nur Mohammed, Director Md
Sirajul Islam Varosha, Managing Director (CC) Md Motior Rahman, deputy managing
directors MA Salam and Md Alauddin Al-Azad and Company Secretary EVP Md Anwer
Hossain, industrialists, guests, clients and well-wisher also present on the occasion.

24
 Address:
Jamuna Bank Limited
Uttara Branch

Giant Business Tower, Plot No. 3 and 3A, Sector 3,

Uttara, Dhaka.

Phone: 7912862 (Direct) 8962601 8933059, 8959346 (PABX)

Email: manager.uttara@jamunabank.com.bd

2.9.1 Department:

General Banking
01

Clearing
02

Investment
03

2.9.2 Functions of JBL Uttara Branch

General Banking:

Giving all the services related with different accounts and schemes as opening, closing,
Changing etc.

All types of cheque and cash transactions.

Interbank and interbank transactions.

25
Clearing:

Issuance of pay orders.

Issuing ATM cards.

Providing account statements.

Cheque and balance transfer.

Online banking activities.

Loan:

Handling of all the loan schemes.

Handling of credit cards.

Bank guarantees.

2.10 SME Loan

SME means Small and Medium Enterprise which are the backbone of Bangladesh economy.
Development of SME should also be based on graduation of micro enterprises. The
Bangladesh Bank for the first time released a small and medium enterprise (SME) Credit
Policies and Programs with a disbursement target of around Tk 240 billion for the calendar
year 2010. So, The term SME bundles micro, small and medium enterprises and their
definition and scope vary in terms of number of employees, annual turnover, capital Loan,
paid-up capital, etc. from country to country. The European Union defines SMEs as
independent enterprises (not owned as to 25 percent or more of the capital or voting rights by
one or jointly by several enterprises) which have one to 250 employees and have an annual
turnover not exceeding 40 million euros, or an annual balance-sheet total-not exceeding 271
million euros. Small enterprises have fewer than 50 employees and annual turnover not
exceeding 10 million euros. Bangladesh SMEs have assumed special significance for
poverty reduction programs and potential contribution to the overall industrial and economic
growth. Lets focus on about small and medium enterprise.

26
2.10.1 Small Enterprise:
In manufacturing, small enterprise will be deem as comprise enterprises with either the value
(replacement cost) of fixed assets excluding land and building between Tk 50000 and Tk
15000000, or with between 25 and 100 workers. For services, small enterprise will
correspond to enterprises with either the value (replacement cost) of fixed assets excluding
land and building between Tk 50000 and Tk 5000000, or with between 10 and 25 workers. In
the trading sectors small enterprise will correspond to enterprises with either the value
(replacement cost) of fixed assets excluding land and building between Tk 50000 and Tk
5000000 or with between 10 and 25 workers. If on one criterion, firms fall into the small
category, while it falls into medium category based on the other criterion. The firm will be
deemed as in the medium category.

SI Sectors Fixed asset Workers

1 Service 50,000-50,00,000 10-25

2 Trading 50,000-50,00,000 10-25

3 Manufacturing 50,000-1,50,00,000 25-100

Table 9: Regulations of Small Enterprise.

2.10.2 Medium Enterprise:

In manufacturing, medium industry will be deemed to comprise enterprises with either the
value (replacement cost) of fixed assets excluding land and building between Tk 15000000
and Tk 200000000, or with between 100 and 150 workers. For services, medium enterprise
will correspond to enterprises with either the value (replacement cost) of fixed assets
excluding land and building between Tk 5000000 and Tk 100000000, or with between 50 and
100 workers. In the trading sectors medium enterprise will correspond to enterprises with
either the value (replacement cost) of fixed assets excluding land and building between Tk
5000000 and Tk 100000000 or with between 50 and 100 workers. If on one criterion, a firm
fall into the medium category, while it falls into large category based on the other
criterion, the firm will be deemed as in the large category.

27
 SI Sectors Fixed asset Workers

1 Service 500 0000-100000000 50-100

2 Trading 500 0000-100000000 50-100

3 Manufacturing 15000000-200000000 100-150

Table 10: Regulations of Medium Enterprise.

Without Small and Medium enterprise another two sectors in SME Loan these are as follows:

Micro Industry
Cottage Industry

Micro Industry:

In manufacturing, micro industry will be deemed to comprise enterprises with either the value
(replacement cost) of fixed assets excluding land and building between Tk 0.5 million and Tk
5 million, or with between 10 and 24, or smaller number of workers. If on one criterion, a
firm fall into the micro category, while it falls into small category based on the other
criterion, the firm will be deemed as in the small category.

Cottage Industry:

In manufacturing, cottage industry will be deemed to comprise enterprises with either the
value (replacement cost) of fixed assets excluding land and building of less than Tk 0.5
million, or with up to nine workers, including household members. If on one criterion, a firm
falls into the cottage category, while it falls into micro category based on the other
criterion, the firm will be deemed as in the micro category.

28
2.11 Sectors of SME Loan

Under SME Loan, the Bank invests from Tk. 2.0 lack to Tk. 50.0 lack in various
manufacturing, trading and service sectors. Sectors under Small Enterprises are:

Manufacturing: Enterprises involving production process such as, food & agro-
based, leather, handicrafts. Pharmaceutical, engineering, electrical accessories,
recycling enterprises etc.
Trading: Enterprises involving purchase & sales, export and import etc.
Service: Enterprise providing services to other persons/organizations such as
telecommunication, transport, information technology, hotel-restaurants, workshop,
etc.

2.11.1 Target Group:

The landowners.
Persons engaged in off-farm activities having no land or l6 and up-to-maximum 0.50
acres.
Persons/farmers permanently residing in the selected villages.
Persons having derelict pond will be eligible for Loan for fish cultivation.
Destitute women and distressed people will be provided Loan for milk cows/poultry
birds/ducks/goats etc. and other suitable off-farm activities for raising their
supplementary income.
Persons having liabilities with other banks/institutions including defaulters will not be
eligible for Loan under the Scheme.

2.12 Principles of Bangladesh Bank for SME Loan

According to Bangladesh Bank the principles for SME Loan are as follows:
For small segment the limitation for Loan at least Tk 500000 to Tk 5000000.
BB advised to follow Cluster-Wise Area Based Approach.
Sanction the loan for women entrepreneur with easy provisions.
According to the Prudential Regulation on Small Enterprise (SE) financing the Bangladesh
Bank Provides Product Program Guideline (PPG) for Small Enterprise (SE) segment.

29
2.13 Systems of SME Loan

According to the rules of Bangladesh Bank there are two types systems for SME Loan. JBL
follows on these systems.

Systems of
SME Loan

Revolving Installment
System System

2.13.1 Revolving System:

Under the revolving system the lenders get to be paid all payments after one year. It means
that the duration of revolving SME Loan is one year. The interest rate against revolving
system is 18%. The lenders get advantage by the revolving basis Loan system, such as if any
client has SME loan like 5 lack and he paid total payments before due date like financial year
June, July, So the paid loan with profit up to December then the lenders dont have to pay the
profit amount for remaining months. As well as, if the clients willing to apply another SME
loan like 1 lack then he has to pay only profit for one lack.

2.13.2 Installment System:

Usually clients or lenders like to have the SME loan under the installment system. JBL
normally provide 24 to 36 installment basis SME Loan. Actually it is depends on lenders.
The lenders either can have 24 or 36 installment for SME Loan. The advantage under
installment the lenders do not need to pay together all money. As well as its profit rate is 18
percent.

30
2.14 SME Loan in JBL

Jamuna Bank is an commercial Bank. Since the establishment, the bank performing their
banking activities successfully. Particularly in the Loan sector they one step ahead from
others. JBL also invest in the Small and Medium enterprise because economic development is
posJBLe by the SME Loan. From the beginning time the bank provides services micro Loan
and micro enterprise in the non formal sector as the SME Loan for customers. Since 2006
according to the principal of Bangladesh Bank which is Prudential Guideline on Small
Enterprise (SE) Financing and JBL follows this guide line and consisted the division.

2.15 Type of sme loan in jbl

Name Purpose Eligibility Key Features Required

of the Documents
Borrower

Jamuna Any business * Minimum * Loan Amount : * Valid trade license

Banik 2 yrs Maximum 50 lacs * Latest TIN
(Import experience * Loan tenure certificate
Finance) depends on the * Import Registration
*Age: 20-60 import of goods Certificate
yrs * Installment *Sales statement of l
basis loan year
* Attractive *Daily statement of
interest rate debit-credit
*Others documents
* Bank Statement of 1
year
Jamuna To procure *Having *Loan amount: * Last 12 months
Jantrik machinery or business for BDT 5.00 lac to sales statement
(Machinery vehicle for at least 2 BDT 50.00 lac * Last 12 months
Loan) SME years in the * Tenure: Max. 60 bank statement
business same line months * Valid Trade License
purpose *Age limit: * Interest rate: of last 2 years
20 years to competitive * National ID/
60 years * Fast and quality Passport of the
service borrower
* No hidden * Photographs
Charge of the borrower
and the
guarantors
* Utility bills of
the Concerned

31
Jamuna Nari Any *Having *Loan amount: *Last 12 months
Uddogh justifiable business at BDT sales statement
(Women business least 2 years 3.00 lac to BDT *Last 12 months bank
Entrepreneur purpose in the same 50.00 lac statement
Loan) line of *Tenure: For *Valid Trade license
business trading & Service of last 2 years
* Age limit: Industry 36 *National ID/
25 years to months Passport of the
60 years *For borrower
manufacturing *Photographs of the
industry 42 borrower and the
months Interest guarantors
rate: 10% - the *Utility bills of the
lowest interest concerned business
rate * Fast and
quality service
*No hidden
charge
*Up to BDT
25.00 lac is
collateral free
Jamuna To meet up *Having *Loan amount: *Last 12 months sales
Chalantika working business at BDT 5.00 lac to statement
(Working capital least 2 years BDT 50.00 lac * Last 12 months
Capital requirement of in the same * Tenure: For bank statement
Loan) the business line revolving loan *Valid Trade License
* Age limit: Maximum 01 year of last 2 years
20 yrs 60 For Term loan *National ID/Passport
yrs Maximum 36 of the borrower
months *Photographs of
*Interest Rate the borrower and the
competitive rate guarantors
* No hidden *Utility bills of the
charge concerned business
*Registered
Mortgage of
Property is
required
Jamuna To facilitate *Having *Loan amount: *Last 12 months sales
Green establishment business at Max. 300 lac statement
of eco least 2 years *Tenure: Max. 60 *Last 12 months bank
friendly in the same months statement
projects line *Interest Rate: *Valid Trade License
Competitive of last 2 years
*Age interest rate *National ID/Passport
limit:20 *Fast and quality of the borrower
years - 60 service *Photographs of
years *No hidden the borrower and the
charge guarantors.

32
 Jamuna To provide *Any type *Loan amount: *Last 12 months sales
NGO loan of NGO Max. BDT 500 statement
Shohojogi facility to the having lac *Last 12 months bank
small certificate *Tenure: Max. 48 statement
enterprise from Micro months Interest *Valid Trade License
through Credit Rate: Competitive of last 2 years
wholesale Regulatory interest rate Personal guarantee of
lending to the Authority to *Fast and quality all the directors
NGOs operate service
business in *No hidden
Bangladesh charge
*Having *Monthly
business at installment basis
least for 5
years in the
same line
*Age limit:
20 years to
60 years

Jamuna To meet up *Having *Loan Amount: *Last twelve months'

Shachchondo Working business at BDT 15.00 lac to Sales Statement.
capital least for 5 BDT 50.00 lac. *Last twelve months'
requirement years in the *Tenure: For 1st bank statement.
of the same line time loan- *Valid Trade License
business. *Age limit: 12months to 30 of last two years.
30 yrs to 55 months. For *National Voter ID/
yrs repeat Loan- 36 Passport of the
moths to 48 borrower.
months. *Photographs of the
*Competitive borrower and the
interest rate. guarantors.
*Fast and quality *Utility bills of the
service. conc erned business.
*No hidden
charge.
*A FDR shall be
taken covering
minimum 25% of
the total ticket
size. The SOD
facility shall be
allowed up to
90% of the FDR
amount.
*Guarantor must
be renowned
business person
and have

33
 Jamuna Any *Having *Loan Amount: *Last twelve months'
Swabolombi justifiable business for BDT 5.00 lac to sales Statement.
Business At least 2 BDT 25.00 lac. *Last twelve months'
purpose. years in *Tenure: For bank statement.
the same Trading & *Valid Trade
line. Service License of last two
*Age Limit: Industry 30 years.
20 years to months. For *National Voter ID/
60 years. Manufacturing Passport of the
industry 36 borrower.
months. *Photographs
*Interest Rate: of the
Competitive borrower and
interest rate. the
*Fast and quality guarantors.
service. *Utility bills of the
*No hidden concerned business.
charge.
*Up to BDT
25.00 lac is
collateral Free.
Table 11: Types of SME Loan in JBL

2.16 SME Loan opportunity for female entrepreneur

JBL opening the door Loan opportunity for female Entrepreneur because in our country
almost half of the people are female. Because the woman entrepreneurs they trying to
improve the economy of Bangladesh. In the SME sectors the woman entrepreneur had been
disbursed BDT 20.454 billion in 2013 which was BDT 2.434 billion up than 2012, that means
it was 13.49 percent higher. The Bangladesh Bank ordered to commercial banks to issue the
SME loan for woman entrepreneurs with easy provision. Therefore, the new policy has
focused on encouraging more women entrepreneurs in business and Loan across the country.
The loans to be given to more than 60 SME sectors include light engineering, handicraft,
flower, fish processing, handloom, rice-mills, jamdani, Rajshahi silk, bio-gas and compost
fertilizer.

34
2.17 Requirements for applying SME loan

JBL always try to provide the superior opportunity in the Loan banking sectors. According to
the central bank regulation the minimum requirements need to apply for SME loan.

1. Application form
2. Trade license
3. National ID card
4. Legal guarantee
5. Stock valuation
6. Security

2.18 Process of SME Loan in JBL, Uttara branch

2.18.1 Obligation by Client:

The client who wants to apply for SME loan, so he needs to fill up the application form and
fulfill all requirements. Then the client has to submit all documents to the bank.

2.18.2 Obligation by Bank:

For sanctioning the SME loan the bank follow some procedures:

Request from the Client

Collection of Information

Approval of loan

Sanction of SME loan

SME loan Monitoring and Reviewing

Figure 8: SME Loan procedures

2.18.3 Request from the Client:

Bank provides SME loan facilities to the people who are credit worthy to the bank. Credit
worthy depends on the credibility, financial capability, and feasibility of the project and
management ability of the loan to earn profits. When bank is satisfied with all these then the
client is provided with the request for SME loan. At this point it should be mentioned that the

35
client has to go through an interview where his SME loan potentiality is justified through
critical observation. When loan officer is satisfied with the customer he is asked to submit an
application and to fill up a form with specific details.

2.18.4 Collection of Information:

This is one of the most important parts of the loan procedure to collect information of clients
to verify giving loan to them. Generally this portion is done by collecting CIB report from
Bangladesh Bank.

2.18.5 Approval of SME loan:

Branch loan committee:

It is to be headed by the Branch Manager, other members to be selected by the manager in

consultation with Head Office.

Head Office loan committee:

Head office credit in accordance with authority established and delegated by the Board of
Directors.

Reviewing, analyzing and approving extension of SME loan in accordance with authority
established and delegated by the Board of Directors.
Evaluate the quality of tending staff in the bank & take appropriate steps to improve
upon.
Recommending loan proposal to the Executive Committee/Board of Directors which are
beyond the delegated authority.
Ensuring, that all elements of loan application such as Forms, Analysis of statements and
other papers have been obtained and are in order.
Confirming that the transaction is consistent with existing loan policy. Bangladesh Bank
guidelines & if not the Committee may prepare a recommendation form an exception to
or change in policy for consideration by the Executive Committee/Board of Directors.
After completing the meetings among branch and head office committee then the authority
make the decision to approve the SME loan.

36
2.18.6 Sanction of SME loan:

Most important step of providing loan facility is the sanctioning of SME loan. Because
sanctioning authority is responsible for any discrepancy. In this step all the documentation is
completed and the customer is sent an advising letter for the SME credit facility along with
all the terms and conditions.

2.18.7 SME loan Monitoring and Reviewing:

It is the responsibility of the Manager to monitor the overall profile and risk aspect of the
SME loan portfolio in accordance with the criteria set down in the Bank SME Policy. Such
monitoring shall be evidenced from the comments of the Manager in monthly Call/Visit
Report and be kept in the SME Credit File with a copy to the Head Office.

This Review shall be formally performed at intervals prescribed by Head Office but it is the
responsibility of the Manger to ensure at all times that the SME portfolio meets the standard
set forth by the Bank.

2.19 Percentage of SME Loan to Total Loan of JBL

Jamuna Bank Ltd (JBL) has been one of the top private banks in financial sector. Over the
last few years the management of JBL is trying hard to enhance the SME exposure. The
portion of SME Loan over the last few years reflects the fact. From the figure, it can be
observed that the disbursed SME loan increased from the last year in 2012 and 2013. In
2013, the SME Loan reduced from the last year but did not decrease a huge amount.

6000
5000
4000
3000
2000 Total Loan
1000 SME Loan
0
2010
2011
2012
2013

Figure 9: percentage of SME Loan to Total Loan of JBL

37
2.20 Total SME loan disbursement

(BDT in millions)
Year SME disbursement in million
2010 4924
2011 5364
2012 6536
2013 7871

10000
7871
8000 6536
6000 4924 5364

4000
2000
0
2010 2011 2012 2013

Figure 10:Total SME disbursements

2.21 Total SME loan outstanding

(BDT in millions)

Year SME outstanding

2010 5598
2011 6752
2012 7361
2013 8696

10000 8696
8000 6752 7361
5598
6000
4000
2000
0
2010 2011 2012 2013

Figure 11: Total SME loan outstandin

38
2.22 Position of SME interest income
(BDT in millions)

Year SME outstanding

2010 542
2011 685
2012 754
2013 825

900 825
800 754
685
700
600 542
500
400
300
200
100
0
2010 2011 2012 2013

Figure 12: Position of SME interest income

39
Actual Task Part
Chapter- Three

40
3.1 Internship experience

I have joined Jamuna Bank Limited at Uttara branch in 21th September 2014 and I worked in
the account opening section, clearing section after that in Loan section. For that purpose, they
did not want to give me so much authority to do any kind of work. But as an intern, they gave
me some task which I had to do for my learning and also for banking purpose. I was very
lucky to get experience of working in different departments within these three months. Those
are described below:

3.1.1 Account Opening Task

I have worked in this section almost one month. To open a new account I have done the
different task are follows:

Many clients come to know about different types of accounts. My duty was to give
them information about an account. I helped them to compare one to another account
that they can understand which is better for them. For opening account different types
of documents need like signature of introducer, photo of nominee, photo of account
holder, national ID card of account holder, national ID card of nominee. If any one of
them missing then account opening will be defaulted. So its my duty to inform them
which necessary documents need to open an account.
When customer came to open an account, most of the time I filled the account opening
form. I had to know some of the particular information from them and fill the form.
After opening the account I had to take a cheques requisition for the customers who
wanted to take books.
Every cheque book has some page limitation. Whenever the page limit will be at the
end, then the clients will give their recognition slip to issue new one. My task was to
verify the signature from the records.
When new cheque books will come, my task was to register all the books under current
account and savings account category.

41
3.1.2 CREDIT Department

After that I have placed in the Credit department. In this department I learned from about
Loan mode, process of Loan and invested sectors. From my experience I saw that the Clients
basically come to this department who wants to take loans for the business purpose. The
customer comes here to get loan for housing purpose, small business purpose. My task was to
check the clients all the documents that are necessary to get loan that are right or wrong.
Besides that for taking loan it is necessary to have an account in the Jamuna Bank Limited.
Uttara Branch So, my task was those who do not have an account to complete all the
procedures to open an account for that client, to fill the loan requisite form and give the stamp
on the requisite form. As well as, particularly I worked in SME Loan department.

3.1.3 SME Loan Department

During my internship maximum time I worked with SME Loan department. This
department is worked under Loan department. Earlier I mentioned about the task of Loan
department. But I always prefer to work with SME Loan section. So my performance in
the SME department as follows:

1. Fill up the SME application form

2. Attested the necessary document like photocopy of trade license of lenders,
organization profile etc.
3. Check the signature, Photocopy and Photograph of lenders.
4. Fill up CIB application form to see the lenders profile.
5. Submit it to the SME Loan officer

3.1.4 Card & Issuing Cheque Section

DEBIT Card:

If anyone carries a JBL Debit Card he can free to move anywhere round the clock all over
Bangladesh without carrying cash. Even the card can be used without a secret code (PIN) in
departmental stores, shopping centers or restaurants, petrol pump or even for paying phone
bills, just like a credit card.

42
Issuing Cheque Book:

The following procedures maintained of a cheque book:

At first the customer will fill up requisition form.

The leaves of the cheque book under issue shall be counted to ensure that all the
leaves and the bank requisition slip are intact and the name and account number
shall be written on the cover page of the cheque book and its requisition slip.
The name and account number of the customer shall be written in the cheque
book register against the particular cheque book series.
Then the register, cheque book and the requisition slip are signed by the officer in
charge of the Account Opening Department.
Lastly the cheque book is handed over to the customer after taking
acknowledgement on the requisition slip and the register book.

3.1.5 Cash Section

After spending in account opening department, Credit department and SME loan department,
I worked under Cash department .This is another important part of banking. In this
department my task is match the supplement and voucher. In that department, I had to collect
cheques and deposit slips from the clients and that I had to check some important matters,
like-

Name of account holder both in the cheque & deposit slip.

Amount in the cheque & deposit slip must be in word and in figure.

Date in the cheque may be on and before (not more than six months before back).

Cheque must be signature.

Next page of cheque must be two signatures.

If online cheque then must be fill an online from.

Depositors signature in the deposit slip .

43
3.1.6 Clearing Section

Checking the instrument

Works of clearing seal
Same day value
Advance day value
Return cheque

44
 Project Part
Chapter- Four

45
4.1 Problem of the Study

In my internship I worked with the general banking system specially SME Loan of Jamuna
bank limited, Uttara Branch. SME Loan section is most important for any bank. Although the
performance of SME Loan section of JBL Uttara Branch is good, however still some
problems are facing by the department. So, i want to find out it and want to give some
suggestions and for this reason I am doing this research.

4.2 Project Time Line

This study will require 40days. The following table shows the time requirement in each step
of the study.

Description of Activities Days

Develop Research Methodology 8

Making the research plan 5

Developed the hypothesis 7

Conduct survey research 10

Data analysis and Findings with Interpretation 10

Total days 40

Table 12: Description of project activities in days

46
4.3 Gantt chart

For project purpose, I spend the whole month of November (1-30) 2014. I have shown my
activities by this grant chart
Description Week 1 Week 2 Week 3 Week 4

Develop the Research Plan

Develop the Hypothesis

Conduct the Survey Research

Analysis and Interpretation

Figure 13: Project Gantt chart

4.4 Budget Information

The total expenditure to prepare this project as followed

Serial No Particular Amount (BDT)
1 Questionnaires 70
2 Transportation cost 700
3 Mobile Bill 980
4 Lunch 2650
5 Printing and binding of Report 650
6 Others 150
Total 5200

Table 13: Budget Information

47
4.5 Methodology

4.5.1 Data collection method:

Data is inevitable of completing the project. Usually to complete the report data were
collected from the following sources:

4.5.2 Primary Data:

The primary data for this study were collected through questionnaire interview conducted in
JBL Uttara Branch. The interview was mostly with the employees and clients. The interviews
were conducted with a pre-designed structured questionnaire.

4.5.3 Secondary Data:

Secondary data is most important for this study. Secondary sources were including the review
of different journals, magazines, articles and web sites.

4.5.4 Sample frame:

The sample frame of this study was consisted the JBL employees and clients at Uttara
Branch. The sample frame was derived from the list of employees and clients in Uttara areas.

4.5.5 Sample size:

The sample size of this study has been consisted of the customers of JBL operating at Uttara
Branch. A total of 65 peoples have been selected randomly. Among this sample size 80
percent are male and 20 percent are female responded.

48
 Respondents
Male Female

15%

85%

Figure 14: Gender of respondents

4.5.6 Sampling unit/Population:

The population of this study was defined as the employees and clients of JBL Uttara branch

those are having the services more than 3 months.

4.5.7 Sampling Procedure:

To accurately determine the probability, probability sampling is selected and it is simple

random sampling, because each member of a population has an equal chance of being

included the sample. I have used Liker scale to get the response from the customer. I would

like to know whether respondents are:

Strongly Disagree.....1

Disagree ...................................2

Neither Agree nor Disagree ....3

Agree ....4

Strongly Agree.........................5
49
 4.5.8 Analysis of data:

For analysis the data Microsoft office like word, excel was used in the personal computer. As

well as the chart and diagram were given to understand the specific and particular data .The

statistical tools and techniques are used like hypothesis testing. Under the hypothesis

techniques the Z-test are applied in the analysis of data according to the sample size. Based

on my analysis I made findings, limitation, recommendation and conclusion. Finally I present

my study in front of the audiences.

4.6 Hypothesis Development

1. HA: SME Loan has positive impact to increase on the level of JBLs customer satisfaction.

2. HA: JBL SME section uses proper system to meet the clients demand.

3. HA: JBL executives are performing well in the SME Loan section.

4. HA: SME Loan has positive effect on success of the Bank.

5. HA: JBL SME department use advertisement to attract the customers.

Hypothesis testing:
H1 H2 H3 H4 H5
(1) Strongly Disagree 5 7 5 9 6
(2) Disagree 12 9 10 12 13
(3) Neither Agree nor 10 14 17 11 9
Disagree
(4) Agree 13 15 8 18 20
(5) Strongly Agree 25 20 25 15 17
Total 236 227 233 213 224
Average 3.63 3.49 3.58 3.28 3.45
Standard Deviation 1.36 1.35 1.35 1.38 1.32
Z-test value 6.80 5.82 6.35 4.59 5.94

Table 14: Hypothesis Testing

50
 1. H0: SME Loan has no positive impact to increase on the level of JBL customer
satisfaction
HA: SME Loan has positive impact to increase on the level of JBL customer
satisfaction

Ho: = 2.5
HA: > 2.5

n = 65
Here X = 3.63
= 1.36
Z cal= ( X -)/ ( /n) = 6.80

At 5% level of significance, follows Z - distribution Z0.05 = 1.645, Since Z cal> Z tab the
null hypothesis is rejected. So at 5% level of significance, it can be said that SME Loan has
positive impact to increase on the level of JBL customer satisfaction.

Around 20% respondents have agreed and 38% respondents strongly agreed.

8%

38% 19%
Strongly Disagree
Disagree
No opinion
15%
Agree
20%
Strongly Agree

Figure 15: SME Loan impact to increase on the level of customer satisfaction.

51
 2. H0: JBL SME section not uses proper system to meet the clients demand
HA: JBL SME section uses proper system to meet the clients demand

Ho: = 2.5
HA: > 2.5

n = 65
Here X = 3.49
= 1.35
Z cal= ( X -)/ ( /n) = 5.82

At 5% level of significance, follows Z - distribution Z0.05 = 1.645, Since Z cal> Z tab the null
hypothesis is rejected. So at 5% level of significance, it can be said that JBL SME section
uses proper system to meet the clients demand.

Around 23% respondents have agreed and 31% respondents strongly agreed.

11%
31%
14%
Strongly Disagree
Disagree
No opinion
21%
Agree
23%
Strongly Agree

Figure 16: Respondents View on uses of proper system for customer demand.

52
 3. H0: JBL executives are not performing well in the SME Loan section
HA: JBL executives are performing well in the SME Loan section

Ho: = 2.5
HA: > 2.5

n = 65
Here X = 3.58
= 1.35
Z cal= ( X -)/ ( /n) = 6.35

At 5% level of significance, follows Z - distribution Z0.05 = 1.645, Since Z cal> Z tab the null
hypothesis is rejected. So at 5% level of significance, it can be said that JBL executives are
performing well in the SME Loan section.

Around 12% respondents have agreed and 38% respondents strongly agreed.

8%

38% 16%
Strongly Disagree
Disagree
No opinion
26% Agree
12% Strongly Agree

Figure 17: Respondents view on performance of executives in SME section.

53
 4. H0: SME Loan has negative effect on success of the Bank.
HA: SME Loan has positive effect on success of the Bank.

Ho: = 2.5
HA: > 2.5

n = 65
Here X = 3.28
= 1.38
Z cal= ( X -)/ ( /n) = 4.59

At 5% level of significance, follows Z - distribution Z0.05 = 1.645, Since Z cal> Z tab the
null hypothesis is rejected. So at 5% level of significance, it can be said that SME Loan has
positive effect on success of the Bank.

Around 28% respondents have agreed and 23% respondents strongly agreed.

23% 14%
Strongly Disagree
18% Disagree
Neither Agree Nor Disagree
28%
17% Agree
Strongly Agree

Figure 18: Respondents view on SME Loan effect on success of the Bank.

54
 5. H0: JBL SME department not use advertisement to attract the customers.
HA: JBL SME department use advertisement to attract the customers.

Ho: = 2.5
HA: > 2.5

n = 65
Here X = 3.45
= 1.32
Z cal= ( X -)/ ( /n) = 5.94

At 5% level of significance, follows Z - distribution Z0.05 = 1.645, Since Z cal> Z tab the null
hypothesis is rejected. So at 5% level of significance, it can be said that JBL SME
department use advertisement to attract the customers.

Around 31% respondents have agreed and 26% respondents strongly agreed.

9%
26%
20% Strongly Disagree
Disagree
No opinion
14%
Agree
31%
Strongly Agree

Figure 19: Respondents view on use of advertisement.

55
4.7 Findings

Around 20% respondents have agreed and 38% respondents strongly agreed that,
SME Loan has positive impact to increase on the level of JBLs customer satisfaction.
Around 23% respondents have agreed and 31% respondents strongly agreed that JBL
SME section uses proper system to meet the clients demand.
Around 12% respondents have agreed and 38% respondents strongly agreed that JBL
executives are performing well in the SME Loan section.
Around 28% respondents have agreed and 23% respondents strongly agreed that to
Achieve the success of JBL the SME Loan plays a great role of banks profitability.
Around 31% respondents have agreed and 26% respondents strongly agreed, that JBL
SME department use advertisement to attract the customers.

4.8 Recommendation

To increase the level of customer satisfaction the bank should provides incentives
SME products and imposed the reasonable interest rate.
JBL has their IT departments. So for SME Loans they are applying proper system by
using modern technologies like they are making on line CIB inquiry against SME
holders. Sometimes their network does not work properly in the branch. So they
should more careful about that.
The organizational success depends on their employees performances. The JBL
executives providing the best performances in the SME Loan sections. Even JBL
should always monitor the performance of its employees.
To achieve the success of JBL, the SME Loan plays a great role of banks profitability.
So JBL should more careful on SME Loan.
Advertisement is the main attraction for any product. So JBL SME department should
use more advertisement to attract the customers.

56
4.9 Conclusion

Jamuna Bank Limited. is an commercial bank. JBL running successfully and for its good
Loan performance the bank occupies. SME Loan is the vital features of JBL. Day by day the
bank upgrading their SME Loan services. So, SME Loan plays a great role of our economy
and it is the most inevitable section of any commercial bank. JBL follows the banking
criteria, providing the loans and advances as SME Loan.

During the three months internship program at Jamuna Bank Limited, Uttara Branch, almost
all the desks have been observed more or less. This internship program, in fast, has been
arranged for gaining knowledge of practical banking and to compare this practical knowledge
with theoretical knowledge. Comparing practical knowledge with theoretical involves
identification of weakness in the branch activities and making recommendations for solving
the weakness identified.

However, in our country SME, are interrupted by many problems. So the SMEs need more
policy support and hand-holding by large firms and the financial sector. The government
needs to dedicate support by way of greater credit availability, facilitating technology and so
on. Furthermore, JBL needs more active support and continued cooperation of Bangladesh
Bank, ministry of finance and other government agencies, executives and employees of the
bank, valued partners, clients and the community at large in accomplishing difficult tasks
ahead of it.

So, Jamuna Bank Limited plays an important role in the banking system especially in SME
Loan system in Bangladesh. As a leading bank of Bangladesh, JBL contributes in the
business with promising future. I can hope that JBL can spread their business with increasing
various scheme and other utility services.

57
 Bibliography

Annual Report -2010- 2013.

Banking Journal.
Interview with the senior officers of JBL.
Zikmund, G. William. Business Research Method. 8th ed. South-Western Cengage
Learning.
Other Internship Reports of IUBAT.

Website:
www.jamunabankbd.com
www.google.com
www.bangladeshbank.org
http://bankinfobd.com/banks/25/Jamuna_Bank

58
 Appendix

01. JBL Jamuna Bank Limited

02. BIBM Bangladesh institute of Bank Management
03. SME Small Medium Enterprise
04. ATM Automated Teller Machine
05. PPG Product Program Guideline
06. BB Bangladesh Bank
07. CIB Customer Information Bureau
08. SWIFT Society for Worldwide Inter Bank
Financial Telecommunication.
09. BD Bangladesh

Table 15: List of Abbreviation

59
 Sample Questionnaires

Sir,
I am Md. MItrajul Hassin Taufique student of BBA (Finance & Banking) from IUBAT-
(International University of Agriculture and Technology). I am conducting a report on topic,
Analysis of SME Loan of Jamuna Bank Limited, Uttara Branch.
For my (BUS-490): Practicum course. I need your valuable opinion. Let us assure you that
all the information provided by you will be used only for academic purpose and kept under
strict secrecy.

QUESTIONARIES
(Please rate the following questions at the scale of 1 to 5)

Name: -----------------------------------------------------

Age: 21-30 31-40 41-50 51- 60 61-70

Sex: Male Female

(Please tick marks as your desired answer)

1) SME Loan has positive impact to increase on the level of JBLs customer satisfaction.

Strongly Disagree
Disagree
Neither agrees nor disagree
Agree
Strongly agree

2) JBL SME section uses proper system to meet the clients demand.

Strongly Disagree
Disagree
Neither agrees nor disagree
Agree
Strongly agree

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3) JBL executives are performing well in the SME Loan section.

Strongly Disagree
Disagree
Neither agrees nor disagree
Agree
Strongly agree

4) SME Loan has positive effect on success of the Bank.

Strongly Disagree
Disagree
Neither agrees nor disagree
Agree
Strongly agree

5) JBL SME department use advertisement to attract the customers.

Strongly Disagree
Disagree
Neither agrees nor disagree
Agree
Strongly agree

Do you have any recommendation?

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.

Thank You

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