Chapter - 1

Introduction

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1.1 BACKGROUND OF THE REPORT
The report basically deals with credit Management of Janata Bank Limited. The credit
management policy of Janata Bank Limited is prepared in line with the guidelines of
Bangladesh Bank in Credit Risk Management and for the guideline of the officers or
executives in handing affairs relating to credit in a disciplined way. Credit department
plays a very important role in bank as they evaluate the risk and take decision about
giving loan to the customers. In this report I have tried to study the literatures statements
about credit management and also the credit operation of Janata Bank Limited. This
internship report is originated as a partial fulfillment of the BBA program of Bangladesh
University of Business & technology. This report is a mandatory requirement for BBA
completion. I have worked in various Department of Janata Bank Limited,Mirpur
10branch. In this report, I will try to make an overall analysis on all activities of Janata
Bank Limited specially focuses on credit management.

1.2 SIGNIFICANCE OF THE REPORT

This internship report is an important partial requirement of four years BBA graduation
program. This is because knowledge and learning become perfect when it is associated
with theory and practice. By this internship program students can establish contracts and
networking. Contracts may help to get a job in practical life. That is, student can train and
prepare themselves for the job market. A poor country like Bangladesh has an
overwhelming number of unemployed educated graduates. As they have no internship
experience of establish networking system, which is important in getting a job.
Therefore, it is obvious that the significance of internship is clearly justifies as the crucial
requirement of four years BBA graduation.

1.3 SCOPE OF THE REPORT

The study would focus on the following areas of Janata Bank Limited.
 An overview of Janata Bank Limited.
 Credit approval procedure of Janata Bank Limited.
 Credit performance of Janata Bank Limited.

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1.4 OBJECTIVES OF THE REPORT

1.4.1: The Broad Objective:

The Broad objective of this report is to analyze the Credit Performance of Janata Bank
Limited.

1.4.2: Specific Objectives:

The study was conducted to achieve the following specific objectives:
 To know the credit approval procedure of Janata Bank Limited.
 To analyze year wise credit disbursement and growth of Janata Bank Limited.
 To examine the sector wise and geographical location wise credit disbursement of
Janata Bank Limited.
 To assess the status of classified & unclassified loan of the bank.
 To compare the credit performance of JBL with industry.

1.5 METHODOLOGY OF THE REPORT

Methods followed to perform job to complete a task are called methodology. The study
requires a systematic procedure from selection of topic to preparation of the final report.
The overall process of methodology is given in the followings:

1.5.1: Research Design:

This report is descriptive in nature which focuses on the credit performance Janata Bank
Limited. This study is conducted by collecting data for the period of 2013 to 2017.

1.5.2: Sources of Data:

To prepare this report the required information are collected mainly from secondary
sources are:
 Credit manuals Janata Bank Limited
 Annual report Janata Bank Limited
 Different text books
1.5.3: Instruments Used for Data Analysis:
The ratio analysis is used to analyze the credit performance of Janata Bank Limited.
Different types of computer software such as-Microsoft word, Microsoft excel etc. are
used for analyzing and reporting purpose of the study. The ratio analysis is conducted in
form of trend analysis and comparative analysis.

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  Trend Analysis: Trend analysis is the analysis of firm’s performance over time
using ratios. It is really important to analyze trends in ratios and their absolute
levels. This analysis informs us whether a company’s financial condition
improving or deteriorating.
 Comparative Analysis: Comparative analysis is the comparison of bank’s
performance with the industry average.

1.6 LIMITATIONS OF THE REPORT

The term paper is likely to have following limitations:
 Confidentiality of data was another important barrier that was faced during the
conduct of this study. Every organization has their own secrecy that is not
revealed to others. While collecting data on Janata Bank Limited, personnel did
not disclose enough information for the sake of confidentiality of the organization.
 The depth of the analysis has been limited to the extent of information collected
from different sources.
 All the interpretation and conclusion about the result of study is based on the
analyst own perspective.
 Last of all, this study has been conducted within a limited time. So, Observing and
analyzing the broad performance of the bank is not an easy task by this short
duration of time.

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Chapter - 2
Overview of Janata Bank

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2.1 HISTORICAL BACKGROUND OF JANATA BANK LIMITED
‘Janata’ means ‘People’. So Janata Bank means ‘People’s Bank’. Janata Bank Limited
(JBL) is the 2nd largest state owned commercial bank in Bangladesh. Immediately after
the emergence of Bangladesh in 1971, the erstwhile United Bank Limited and Union
Bank Limited were named as Janata Bank. It was established under the Bangladesh Bank
order 1972. During the privatization process it was incorporated as a public Limited
Company on 21, May 07 vide certificate of incorporation No- C66933(4425)07. The
Bank has taken the over the business of Janata Bank at a purchase consideration of Tk.
2593.90 million as a going concern through a vendor agreement signed between the
Ministry of Finance of the Peoples’ Republic of Bangladesh and the Board of Directors
on behalf of Janata Bank Limited on 15th November 2007.Janata Bank Limited operates
through 897 branches including 4 overseas branches at United Arab Emirates and a
subsidiary company named Janata Exchange Company started in Italy. It is linked to 1202
foreign correspondents all over the world.

2.2 MISSION OF JANATA BANK LIMITED

Maintaining stable growth strategy by providing innovative and quality services to the
valued customers, attaining highest level of professionalism, performing operations with
high standard of business ethics and ensuring good corporate governance with the
ultimate aim of creating a vibrant, sustainable and strong capital market in Bangladesh.

2.3 VISION OF JANATA BANK LIMITED

To become the effective largest merchant bank in Bangladesh to support thedevelopment
of capital market and to be a leading merchant bank in South Asia.

2.4 OBJECTIVES OF JANATA BANK LIMITED

The main objective of JBL is to provide all types of banking service at the doorsteps of
the people. The bank participates in various social and development programs and also
takes part in implementation of various policies and promises made by the government
 To establish, maintain, carry on, transact, undertake and conduct all types of
banking, financial, investment and trust business of in Bangladesh and abroad.
 To from, establish and organize any bank, company, institutions or organization
both singly and in joint collaboration of partnership with any individual company,
financial institution, bank, organization.

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  To carry on any business relating to wage-earner scheme as may be allowed by
Bangladesh Bank from time to time including maintaining of foreign currency
accounts and any other matter relates thereto.
 To contract or negotiate all kinds of loan or assistance, private or public from any
source, local or foreign, and to take all such steps as may be required, to be
complete such deals.
 To form, organize assets, participate or aid in forming, promoting or organizing
any company, bank, syndicate, consortium institute or any holding and subsidiary
company in Bangladesh or abroad for the purpose of undertaking any banking
financial business and trust business.

2.5 BUSINESS PHILOSOPHY OF JANATA BANK LTD.

Janata Bank Ltd, a full service commercial bank with Local and International Institutional
shareholding, is primarily driven by creating opportunities and pursuing market niches
not traditionally met by conventional banks. Today JANATA Bank is one of the fastest
growing banks in the country to support the planned growth of its distribution, network
and for its various business segments. The reason JANATA Bank is in business is to build
a profitable and socially responsible financial institution focused on markets and
businesses with growth potential, thereby assisting JANATA and stakeholders build a
“just, enlightened, healthy, democratic and poverty free Bangladesh”. That means to help
market communities and economy of the country stronger and to help people achieve the
dreams as well. They fulfill the purpose by reaching for high standards in everything we
do. For their customers, their shareholders, their associates and their communities upon,
which the future prosperity of their company rests.

2.6 CORE VALUES OF JANATA BANK LIMITED

 Integrity: Janata Bank Limited protects and safeguards all customer information.
Treats everyone in an equity JBL and consistent manner. JBL creates an
environment, which earns and maintains customer trust.
 Open Communication: JBL builds customer relationships based on integrity and
respect. JBL offers a full line of products and excellent service. JBL is committed
to the prosperity of the customers and shareholders.
 Performance Drivers: In JBL, customers and employees are judged in terms of
their performance.
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  Continuous self improvement: continuous learning, self-challenge and strive
make ways for self improvement of workforce at JBL.
 Quality: JBL offers hassle free better service quality. JBL builds- up quality
assets in the portfolio.
 Team work: Interaction, open communication, and maintaining a positive attitude
reflect JBL’s commitment to a supportive environment based on teamwork.

2.7 CORE STRENGTHS OF JANATA BANK LIMITED

 Professionally strong Board of Directors
 Strong capital base
 Transparent and Quick Decision making
 Satisfied Customers
 Internal Control
 Skilled Risk Management
 Diversification
 Quality Customer Service
 Unique Corporate Culture
 Strong Asset Base

2.8 CORE COMPETENCIESOF JANATA BANK LIMITED

 Knowledge
 Experience & Expertise
 Customer 0rientation/ Focus
 Transparency
 Determination
 Zeal for Improvement
 Reliability

2.9 FUNCTIONS OF JANATA BANK LIMITED

 To maintain all types of deposit A/Cs
 To make investment
 To Conduct Credit
 To Conduct foreign exchange business

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  To Conduct other Banking services
 Agricultural & Rural Credit
 Export Development Fund
 Green Banking
 Financing Women Entrepreneurs
 Loan Classification and Provisioning
 Credit monitoring, early alert and management of non-performing loans.
 SWIFT operations
 Treasury operations and fund Management
 International Trade Operation
 Internet Banking Service
 Perform social welfare & activities

2.10 STRATEGY OF JANATA BANK LIMITED

 To manage and operate the bank in the most efficient manner to enhance financial
performance and control cost of fund.
 To strive for customer satisfaction through quality control and delivery of timely
services.
 To identify customers credit and other banking needs and monitor their perception
towards our performance in meeting those requirement.
 To review and update policies, procedures and practices to enhance the ability to
extend better services to customers.
 To train and develop all employees and provide adequate resources so that
customer needs can be responsibly addressed.
 To promote organizational effectiveness by openly communicating company
plans, policies, practices and procedures to all employees in a timely fashion.
 To cultivate a working environment that fosters positive motivation for improved
performance.
 To increase direct contract with customers in order to cultivate a closer
relationship between the bank and its customers.

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2.11 MANAGEMENT STRUCTURE OF JANATA BANK LIMITED

Management structure of JBL

Chairman

Managing Director

General Manager

Deputy General Manager

Senior Principal Officer

Assistant General Manager

Principal Officer

Senior Officer

Officer

Sub Accountant

Senior Clerk

Fig 2.11: Management Hierarchy of Janata Bank Limited

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2.12: SERVICES OFFERED BY JANATA BANK
2.12.1: Personalized Services:
Janata Bank Limited with its widely speeded branch network and skilled personnel
provides prompt and personalized services like issuing
 Demand Draft
 Telegraphic Transfer
 Mail Transfer
 Pay Order
 Security Deposit Receipt
 Transfer of fund by special arrangement
 Normal transfer
 Electronic transfer through Ready Cash Card
 Locker Service

2.12.2: Online Banking:

Times have changed and technological boom has given the businesses superlative edges
over the manual and traditional functionalities of business operations. So the bank
business in Bangladesh has overwhelmingly changed with the introduction of on-line
banking in bank business. Janata Bank Limited has also stepped into the world of on-line
banking and is rapidly progressing in implementation of on-line banking through Core
Banking System (CBS). Up to January, 2018 total 174 branches out of 904 branches have
been brought under CBS and as planned all the branches will be brought under this
system by 2019. Introduction of CBS in 114 branches of the Bank has already had
encouraging impact on our business and full implementation of it will definitely have
tremendously positive impact on our customer services and business growth.

2.12.3: ATM Service:

To offer modern banking services, Janata Bank Limited is providing its customers with ATM
facilities. At present, this ATM service is being provided under the largest network comprised
of 28 banks of which 26 are member banks and 2 are network-sharing banks. Card-holders of
our bank have access to more than 2800 ATMs, of which 6 are of the Bank 'sown and the
others are of network-sharing and member banks’. Apart, Card-holders have the opportunity
to use approximately 3,600 Point of Sales. Schemes have also been taken to increase the
number of ATMs of the Bank.

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2.12.4: Utility Services:
As per decision of the Government 46 branches of our bank (40 branches in Dhaka city,
one branch in Narayanganj city and five branches in Chittagong city) are involved in
receiving all utility bills in a same station from January'2004. Janata Bank collects
various types of utility bills like-
 Gas bill
 Electricity Bill
 Telephone Bill
 Sewerage Bill Collection
 Municipality Holding Tax Collection

2.12.5: Inland Remittance:

Janata Bank Limited with its wide ranging branch network and skilled personnel provides
prompt and personalized services like issuing:
 Demand Draft
 Telegraphic Transfer
 Mail Transfer
 Pay Order
 Security Deposit Receipt
 Transfer of fund by special arrangement,
 Electronic transfer through Ready Cash Card.

2.12.6: Government Service:

National e-Government Procurement (e-GP) portal of the Government of the People’s
Republic of Bangladesh is developed, owned and being operated by the Central
Procurement Technical Unit (CPTU), IME Division of Ministry of Planning. The e-GP
system provides an on-line platform to carry out the procurement activities by the Public
Agencies – Procuring Agencies (PAs) and Procuring Entities (PEs).

2.12.7: Other Services:

 Locker Service: Our safe deposit locker service offered from selected branches
gives a completely secured facility for safekeeping of precious items, confidential
documents and other valuables.
 Issuance of Television License: Only Janata Bank Limited is providing this
service in Bangladesh.

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Chapter-3
Theoretical Aspects

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3.1 DEFINITION OF CREDIT
The word credit is derived from the Latin word “credo” which means “I believe” and is
usually defined as the ability to buy with a promise to pay. It consists of actual transfer
and delivery of goods and services in exchange for a promise to pay in future.
It is simply the opposite of debt. Diversification of banking service has accelerated the
use of credit in the expansion of business operation. It is a fundamental precept of
banking everywhere that advances are made to customers in reliance on his promise to
pay rather than the security held by the banker.

3.1.1 Objective of the Credit Policy

There are some objectives behind a written credit risk management of Janata Bank that
are as follows:
 To provide a guideline for giving loan.
 Prompt response to the customer need.
 Shorten the procedure of giving loan.
 Reduce the volume of work from top level management.
 Delegation of authority of work from top level of management.

3.2 DEFINITION OF CREDIT MANAGEMENT

Loans or credits comprise the most important asset as well as the primary source of
earning for the banking institutions. On the other hand, loan/credit is also the major
source of risk for the bank management. A prudent bank management should always try
to make an appropriate balance between its return and risk involved with the loan
portfolio. Credit appraisal process is the tool, which helps the bank to predict the risk and
return on the proposed project for credit disbursement. To get a clear idea about credit
appraisal process we need to know the key factors of credit appraisal procedures.

3.2.1: Objectives of Credit Management:

The objective of credit management is
 To maximize the performing asset and the minimization of the non-performing
asset as well as ensuring the optional point of loan and advance and their efficient
management.
 To allocate the fund I diverse field and to minimize the risk and maximizing, the
return on the invested fund. Continuous supervision, monitoring and follow-up are
highly required for ensuring the timely repayment and minimizing the default.
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The overall success in credit management depends on the banks credit policy, portfolio of
credit, monitoring, supervision and follow-up of the loan and advance. Therefore, While
analyzing the credit management of Janata Bank Ltd, it is required to analyze its credit
policy, credit procedure, how they are managing credit and quality of credit policy, credit
procedure, how they are managing credit and quality of credit portfolio. To implement
procedures which ensure the collection of debt, meeting of service targets and the
prevention of escalation in arrear dent. To facilitate financial assistance and basic services
for the community’s poor Customer Care, Credit Control, Debt Collection and Indigent
policy and provide incentives for prompt payment as well as ensuring limited risk levels
by means of effective management tools.

3.3 CREDIT RISK MANAGEMENT

Credit risk management encompasses identification, measurement, matching, mitigations,
monitoring and control of the credit risk exposures to ensure that:
 The individuals who take or manage risks clearly understand it.
 The organizations risk exposure is within the limits establish by Broad of
Directors with respect to sector, group and country’s Risk prevailing situation.
 Risk taking decisions are in line with the business strategy and objectives set by
Board of Directors.
 The expected payoffs compensate the risks taken.
 Risk taking decisions are explicit and clear.
 Sufficient capital as a buffer is available to take risk.

3.3.1Objectives of Credit Risk Management:

 Strengthen credit management system
 Reducing Loss
 Optimum Profit
 Formation of ICT based credit management
 Risk Management & Risk grading of borrowers having limit 50.00 lac & above.
 Formation of credit Management considering Globalization, Free market economy,
 Decentralization, Middleman free National & international environment.
 Formation of strong credit policy
 Segregation of duties
 Develop risk Management culture.

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3.3.2 Importance of Credit Risk Management for Banking
The importance of credit risk management for banking is tremendous. Banks and other
financial institutions are often faced with risks that are mostly of financial nature. These
institutions must balance risks as well as returns. For a bank to have a large consumer
base, it must offer loan products that are reasonable enough. However, if the interest rates
in loan products are too low, the bank will suffer from losses. In terms of equity, a bank
must have substantial amount of capital on its reserve, but not too much that it misses the
investment revenue, and not too little that it leads itself to financial instability and to the
risk of regulatory non-compliance.
Credit risk management, in finance terms, refers to the process of risk assessment that
comes in an investment. Risk often comes in investing and in the allocation of capital.
The risks must be assessed so as to derive a sound investment decision. Likewise, the
assessment of risk is also crucial in coming up with the position to balance risks and
returns.
Credit risk management for banking is a very useful system, especially if the risks are in
line with the survival of banks in the business world.

3.4 CLASSIFICATION OF LOAN

3.4.1: Unclassified Loan
These are loans that do not have a greater-than–normal risk and do not process the
characteristics of classified loans as defined in item B of this section. The borrower has
the apparent ability his obligations full and therefore no loss in ultimate collection is
anticipated. The following loans, among others, shall not be subject to classification:
Loans or portions thereof secured by hold-outs on deposit substitutes maintained in the
lending institution and margin deposits or government supported securities. Loans with
technical defects, deficiencies in documentation and collateral requirements. These
deficiencies are isolated cases where the exceptions involved are not material nor is the
bank’s chance to be repaid or the borrower’s ability to liquidate the loan in an orderly
manner undermined.

3.4 .2: Classified Loan:

A classified loan is the term used for any loan that a bank examiner has deemed to be in
danger of defaulting. The borrower do not necessarily need to miss payments order for a
bank to label the account in this manner. A borrower can have what the bank calls a
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classified loan for different reasons. This is simply a precaution that financial institutions
take to prepare for a possible loss and to prevent any further risk. There are three
categories of classified loan
a. Sub-Standard Loan: The repayment of investment of investment and investment
and advances are irregular but has reasonable prospect of improvement. When
loan cannot be collected from 6 to 9 month then it will be called sub-standard.
b. Doubtful debt Loan: It is unlikely to be repaid but special collection efforts may
result in partial recovery. Its time duration from 9 to 12 month.
c. Bad /loss Loan: There is little chance of recovery of investments and advances.
When loan is uncollected till 12 month or more.

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Chapter-4
Credit Management of Janata Bank Limited

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4.1 CREDIT POLICY OF JANATA BANK LIMITED
In line with the Bangladesh Bank declared concretionary monetary policy that prevailed
in the year 2015, Janata Bank Limited’s Credit policy was to expand credit within prudent
limit and to discourage credit in unproductive sectors. Simultaneously, Janata Bank
Limited has maintained a deliberate pro growth directional bias in its credit policy to
ensure adequate credit flows to farm and non-farm productive sectors of micro, small &
medium enterprises. The credit policy of Janata Bank Limited has been devised in
accordance with Bangladesh Bank’s guidelines t o ensure that effective credit risk
management practices are followed, which will contribute towards the achievement of the
overall business objectives of the bank while ensuring compliance with the regulatory
framework set out by the regulators. Janata Bank Limited’s annual credit plan determines
overall limits based on various client segments and products, economic sectors,
geographical locations ,currency and maturity with a view to avoid undue concentration
un any client segment, economic sector or geographical location.

4.2 CREDIT PRINCIPLES OF JANATA BANK LIMITED

In the future, credit principles include the general guidelines of providing credit by branch
manager or credit officer. In Janata Bank Limited they follow the following guideline
while giving loan and advance to the client.
Credit advancement shall focus on the development of customer relationship.
All credit extension must comply with requirements of Bank’s Memorandum and
Article of Association, Banking Company’s Act, Bangladesh Bank’s instructions,
other rules and regulation s amended from time to time.
Loans and advances shall normally be financed from customer’s deposit and not
out of temporary funds or borrowing from other banks.
The bank shall provide suitable credit services for the markets.
The conduct and administration of the loan portfolio should contribute with in
defined risk limitation for achievement of profitable growth and superior return on
bank capital.
Interest rate of various lending categories will depend on the level of risk and
types of security offered.

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4.3 GENERAL PROCEDURE OF SANCTIONING LOAN
4.3.1: Borrower Selection:
In bank, a borrower is the party in aloan agreement which receives money or other
instrument from a lender (bank) in accordance with agreed terms. So, selection of
borrower is an important component of the credit granting process. Inappropriate
borrower selections are noisy signals that could have economic consequences for lenders.
Professional loan officers analyze financial and non-financial information of proposed
borrowers and set preferred levels of information examined, lenders’ risk preferences and
years of lending experience. Effective system that ensures repayment loan by borrower is
critical.
Lending means deployment of credit and all loans contain some degree of risk involved in
the whole process. So, borrower selection is very much important to minimize the risks of
lending as wrong borrower selection may lead to unexpected situations among the Banks,
the depositors and the borrower that based upon trust. To ensure sound lending, borrower
selection is the process of evaluating credit risk on the criteria of safety, liquidity,
purpose, profitability, security, diversification, adequate return, credit control, national
priority as well as end use of the funds.

Impact of Wrong Borrower Selection:

Chain impact

Selection of wrong borrower

Non-performing loan

Low margin/low return

Low level of profit

4.3.2: Loan Application:

As part of the banking business, the bank has various segments to which credit facilities
are provided for their business requirements. These include a wide range of customers
and range from small & medium enterprises to large corporate borrowers. The bank has a
process for identification of target customers to whom facilities can be provided based on

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customer selection and risk assessment for that segment. Thus, the focus is on contacting
prospective customers and encouraging them to avail of banking services from Janata
Bank Ltd. Based on the incremental value we can add to a customer’s business, rather
than customers making applications to the Bank for facilities. In the process pf lending,
loan application is vital in the sense that the borrowers express their requirement in light
of their present situation. We can come to know about the clients fund requirement and
purpose through loan application. The client completes the Credit/Loan Application with
the assistance of the Branch Manager or his/her delegated officer as per the suggested
format. The form will help insure that adequate information about the borrower is
obtained. The application should be filled out as completely as possible to provide
sufficient information with which to begin the analytical process, from the basis for an
initial site visit and understand proposed collateral. One of the objectives of through
initial visits with the client is to determine the client’s character, business condition,
prospects and to gather supplemental financial information. Identification and appraisal of
collateral is also essential during initial visits.

4.3.3: CIB Report:

Updated CIB report to be obtained on the borrower from Credit Information Bureau,
Bangladesh Bank for assessment of the condition of their existing liabilities with any
Bank/Financial Institution.

4.3.4: Party’s financial statement:

After receiving CIB report from Bangladesh Bank, then respective branch collect from
company’s financial statement minimum 3 year, this document help the future lone back
possibility and this base Investment for approval of Head Office. Documents those are
necessary for sending Investment proposal are:

Necessary Document:
While advancing money, banks create a lot of document, which are required to be signed
by the borrowers before the disbursement of the loan. Of them some are technically called
charge documents. Amount the documents frequently used, some are:
a) Loan application from duly signed by the customer.
b) Acceptances of the term and conditions of sanction advice.
c) Trade license.

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d) Letter of guarantee of third party
e) Net- worth statement
f) If is individual borrower
 Letter of guarantee of the spouse of the borrower
 Personal net-worth statement of the borrower

g) In case of partnership firm

 Trade license (up to date)
 Partnership Deed (registered)
 Letter of guarantee of the partners
 Personal Net-worth statement (PNS) of partners
 Letter of partnership
 Partnership Account Agreement

h) In case of limited company

 Copy of memorandum and articles of association of the company including
certificate of incorporation duly certified by Registered joint Stock Companies
(RJSC) and attested by the managing director and accompanied by an up-to-
date list of directors.
 List personal profile of director
 Certificate of incorporation.
 From 12 certified by RJSC
 Board resolution in respect of availing loans & execution of document with
bank.
 Letter of guarantee of the director.
 Personal net-worth statement of director.
 Deed of mortgage & hypothecation for creation of charge on fixed & fluting
assets (existing & future) with RJSC
 Modification of charge creation certificate from RJSC
 Undertaking starting that the borrower shell not makes any amendment or
alternation in memorandum & article of association without prior approval of
bank.
 Approval of the bank for any inclusion or execution of director in & from the
company.

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  Certificate of commencement (in case of public limited company)
 Joint venture agreement (in case if joint venture company)
 BOI permission (in case if joint venture company)

i) Required Doc’s for Retail (individual)

 Photograph-2 copies
 Passport/National ID card
 Visiting card/company ID
 TIN Certificate
 Trade license (For Businessman)
 Utility Bill (Electricity/WASA/Gas)
 Bank statement-last 6 months
 Partnership Deed (for partnership firm)
 Company memorandum (FPF)
 Rental/Lease/Title Deed
 Certificate of professional degree
 Guarantor
 Spouse-photo with signature, Attested by applicant
 Eligible photo with signature, Attested by applicant, Visiting card, TIN
 Sanction letter with Related Bank Statement (if enjoying any loan)

j) Required Doc’s for SME

 Total stock
 Total sale for 1 year
 Total creditors
 Total debtors
 Guarantor
 Net worth
 Photograph
 Visiting card
 Trade license

k) Required Doc’s for Term loan

 Term loan agreement
 Letter of installment
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  Letter of undertaking
 Amortization schedule

4.3.5: Collect credit risk grading sheet (CRGS):

The branch collect credit risk grading sheet because this measure the credit risk. The
company or person which category of risk against (high, medium or low). This help of the
bank.

4.3.6: Techniques of Project Appraisal:

An appraisal is a systematic exercise to establish that the proposed project is a viable
preposition. Appraising officer checks the various information submitted by the promoter
in first information sheet, application for Investment and Investment proposal.
United commercial considers the following aspects in appraising a proposal.
 Technical viability
 Commercial viability
 Financial viability
 Economical viability

The Head Office mainly checks the technical, commercial and financial viability of the
project. For others HO is dependent on branch’s information. But when the investment
size is big, then the HO verifies the authenticity of information physically.

4.3.7: Application & declaration from applicant:

The application collects from applicant then the bank declaration from then lone amount.
This procedure applicant all of recoupment fill the bank than bank head-office send all
information for the sanction lone.

4.3.8: Proposal from filling the bank

The bank officer readies the proposal from. This from applicant all kind of information
and applicant why collect this line and this use and return facility all information gather
this proposal. This proposal applicant all information known then this granted the granted
the head office and necessary observation complete for applicant.

4.3.9: Head office approval as sanction advice

When Head office receive appraisal from the branch then, Head Office again appraises
the project. If it seems to be a viable one, the HO sends it to the Board of Directors for the

Page | 24
approval of the Investment. The Board of Directors (BOD) considers the proposal and
takes decision whether to approve the investment, the HO sends the approval to the
concerned branch.
The respective officer of Head Office appraises the projects by preparing a summary
named “Top Sheet” or “Executive Summary” and then he sends it to the Head Office
Credit Division considers the proposal and takes decision whether to approve the
Investment or not. If the committee approves the Investment, the HO sends the approval
to the concerned branch. The all kind of formalities maintain so head office necessary
legal analysis like as:
 If project lone then see the project
 This project lone legal all information collects
 If the personal lone so all personal information collects
 The observation of 5C’s
This all confirm so head office approval as sanction advice from the branch than branch
sanction the lone.

4.3.10: Branch approval as sanction advice augends loan application

After getting the approval of the HO the branch issues sanction letter to the borrower. A
sanction letter contains:
 Name of borrower
 Facility allowed
 Limit
 Purpose
 Rate of interest
 Period of the Investment and mode of adjustment
 Security and other terns and condition

4.3.11: Documentation:
Documentation is obtaining such agreement where all the terms and condition and
securities are written and signed by the borrower. Generally, the documents are taken in
the of a secured advance by ABL:
 Demand promissory note: Here the borrower promises to pay the loan as and
when demand by band to repay the loan.
 Letter of arrangement
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  Letter of continuity
 Letter of hypothecation of goods and capital machinery
 Stock report: This report is used for OD and CC. In this report, information about
the quality and quantity of goods hypothecated is furnished.
 Memorandum of deposit of title deed of property duly signed by the owners of the
property with resolution of Board of Directors of the company owning the landed.
 Personal guarantee of the owners of the property
 Guarantee of all directors of the company
 Resolution of the board of directors to borrow fund to execute documents and
completes other formalities
 From no. XVII/XIX for filling charges with the register of joint stock companies
under relevant section.
 Letter of Revival

4.3.12: Disbursement:
When the credit proposal are approved the credit must have to be ensured that the
disbursement of the credit facilities must comply with the directors written in the credit
policy and circular made by time to time along with checking all the following terms and
conditions:
 The officer of loan administration must collect the acceptance of the customer’s of
the terms and conditions on the duplicate copy of the sanctioned advice.
 They will thoroughly examine and ensure that the subject credit facility does not
contradict to any law, rules and regulation of the country, Bangladesh Bank. Deed
of the Mortgage and power of the Attorney to be drafted and executed under the
Supervision of the Bank’s Legal advisor.
 Lawyers certificate to the effect that all the legal formalities has been properly
created on the land and building in favor of the bank & bank has acquired the
effective title of the property.
 Registered power of attorney has been collected from the borrower assigning the
work order favoring the ABL and the power of attorney has been registered with
the work order given agency and they have agreed that they will issue all the
cheques favoring ABL.
 The legal documents of the vehicle have been obtained.

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  Collection of the satisfaction certificate in respect of all the documents both legal
and banking from the lawyer.

4.4 ASSESSING CREDITWORTHINESS OF BORROWER

Character: To determine whether the borrower has a responsible attitude towards
borrowed funds and whether he will have every effort to repay what is owed.
Responsibility, truthfulness, serious purpose and intention to repay loans make up
characters of the borrower.
Capacity: Whether customer requesting loan has the authority to request loan and
have the legal standing to sign loan agreement and documents.
Capital: Whether borrower has sufficient assets to repay the loan.
Collateral: Property or other assets that a borrower offers a lender to secure a
loan. If the borrower stops making the promised loan payments, the lender can
seize the collateral to recoup its losses.
Economic condition/Assets: Other loans and liabilities of the borrower. The
creditors enough profit or asset he can pay the lone installment.

4.5PRINCIPLES OF SOUND LENDING

 Safety: The first guiding principles of a Banker should be “Safety First”,so fares
his advances are considered, because the very existence of a Bank depends of the
Safety of its outstanding which should never, therefore, he sacrificed to the profit
earning capacity of its advances. Consequently, to maintain a banking concern in
sound condition, it is very essential that the safety of its advances to customers
should be above suspicion.
 Liquidity: Bank’s can invest in two types of terms viz. Long term and Short term.
Bank’s feel very risky in long-term investment. So, they normally invest in Short-
term investment to maintain the liquidity of the Bank.
 Profitability: Equally important is the principle of Profitability in Bank advances.
Like other Commercial institutions, Banks must make profit where there is no
profit banks do not invest.
 Purpose: Another significant principle which is to be kept in view when
advancing is the purpose. The purpose for which lending is made should he
productive as to ensure definite source or repayment. Bank’s discourage advances
for Harding Stocks or for speculative activities.
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  Diversification of risk: The security consciousness of a banker and the integrity
of the borrower are not adequate factors to keep the banker on safe side. What is
more important is the diversification of risk. This means, he should not lead a
major portion of his loan able funds to any single borrower or to an industry or to
one particular region.
 Security: Whenever a money lender lends money he must be consider carefully
the changes of his being repaid by the borrower and is therefore not normally
content to rely on the obligation or the borrower alone but wants some tangible
security from which he can obtain repayment in case the borrower is unable to
meet his obligations.
 Sources of repayment: A sound credit is one where timely repayment is assured.
So, before giving financial accommodation, a banker should consider the source
from which repayment id promised.
 Suitability: Even when an advance satisfies all the aforesaid principles it may still
not be suitable. The advance may be encountered to National interest. These
principles may have to be amended to a certain extent. Suitability of advance from
national viewpoint has therefore come to be regarded as a basic principle of
lending.
 National Interest: The development of banking has reached a stage where a
banker is required to identify his business with national policies. Banking Industry
has significant role to play in the economic development of a country. So, the
savings of the people which are mobilized by banks must be distributed to those
sectors which require development in the country’s Planning Program.

4.6CREDIT MONITORING
The Credit Administration Division will oversee the credit and investment activities of
the bank with a broader portfolio-based outlook.
 The loan administration unit of the division will establish and maintain a
comprehensive data base on all credit exposures and monitor consolidated
movements as these are reported through copies of transaction sheets and
summaries .Summary reports and recommendations will be submitted to the credit
committee for appropriate action or policy decisions.

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  The credit review unit of the division is responsible for reviewing the credit
process to ensure that approved policies and procedures are being effectively
being implemented throughout the bank.

4.7EARLY ALERT PROCESS

An early alert account is one that has risks or potential weaknesses of a nature requiring
monitoring, supervision, or close attention by management. If these weaknesses are left
uncorrected, they may result in deterioration of the prospects for the asset or in the Bank’s
credit position at some future date with a likely prospect of being downgraded to CG 5 or
worse within the next twelve months. Early identification, prompt responsibilities of all
Relationship Managers and must be undertaken on a continuous basis. An Early Alert
report is completed by the RM and sent to the approving authority in CRM for any
account that is showing signs of determination within seven days from the identification
of weaknesses. The Risk Grade is updated as soon as possible.

4.8CREDIT RECOVERY
It is the duty of the Bank to recover the landed fund within the stipulated time and if the
borrower fails to repay the money within the pointed period Bank declare him/ her as a
defaulter and recover the fund by selling the securities given by the borrower or by
freezing his/ her account or make a suit against him/her.
Recovery procedure is a lengthy one that requires efforts of the bank society and legal
institutions. It also takes time and money. Like other banks, Janata Bank Limited follows
four steps to recover the outstanding amount. These four steps are described in detail
below-
 Reminder to the client is given through a formal communication channel. A letter
is written and properly signed on the bank’s papers. This letter is issued several
times to remind the honorable loaner to repay his/her outstanding portion.
 If the loan amount is not yet repaid after sending a series of letters, then social
pressure is created of the client by persons referred while opening account in the
bank.
 Legal notice is prepared and sent by Janata Bank Limited when above toe steps
fails to recover the amount. It is a threat to the borrower.

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  The last and final step of the recovery procedure is the help from the court. Janata
Bank Limited sincerely tries to avoid this kind of situation for its honorable clients
but con not help doing for its own sustainability.

1st reminder by the Bank

2nd reminder by the Bank

3rd or final reminder by the Bank

Providing legal notice

Executives of legal rules by the help of court

Fig 4.2: Credit Recovery Procedure

Recovery procedure of Janata Bank Limited is the ultimate combination of time, effort of
money. It follows four procedural steps to recover the lending amount, which is joint
effort of Bank, society and legal institutions, which are shown in Chart.

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Chapter - 5
Credit Performance of Janata Bank Ltd

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5.1 DISBURSEMENT OF TOTAL LOANS & ADVANCES
Table 5.1: Total Loan & Advances [Tk in Million]
Year 2013 2014 2015 2016 2017
115,388.89 126,169.79 151,098.98 172,964.72 186,179.45
Loans &Advances
28.90% 9.34% 19.76% 14.47% 7.64%
Growth Rate
Source: Annual Report 2013-2017, JBL

Graphical Presentation:

Total Loans & Advances

200,000.00

150,000.00 186,179.45
172,964.72
151,098.98
100,000.00 126,169.79
115,388.89
50,000.00

0.00
2013 2014 2015 2016 2017

Figure 5.1: Distribution of Total Loans & Advances

Growth Rate of Loans & Advances

35.00%
30.00% 28.90%
25.00%
20.00% 19.76%
15.00% 14.47%
10.00% 9.34%
7.64%
5.00%
0.00%
2013 2014 2015 2016 2017

Figure 5.2: Growth Rate of Loans & Advances

Interpretation:
The first figure show that the loan & advance of Janata Bank Ltd has increased over the
years from Tk. 115,388.89 million in 2013 to Tk.186,179.45 in 2017. The second graph
shows that the growth rate loan & advance of Janata Bank Ltd has fluctuated over 2017.
However, the growth rate has decreased over the years.

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.5.2DIVISION WISE CREDIT DISBURSEMENT IN 2017
Table 5.2: Division Wise Credit Disbursement in 2017 [Tk in Million]
Division Taka in million Percentage of total loans &
advances
Dhaka Division 1,06,202.08 61.05%
Chittagong Division 48,229.16 27.72%
Khulna Division 4,626.33 2.66%
Sylhet Division 1,048.31 0.60%
Rangpur Division 2,392.82 1.38%
Barisal Division 1,507.27 0.87%
Rajshahi Division 8,958.77 5.15%

Source: Annual Report: 2013-2017, JBL

Graphical Presentation:

Figure 5.3: Division wise credit disbursement

Interpretation:
The above shows that Janata Bank Limited disbursed a large portion of credit in Dhaka
Division in 2017, because most of the industry and commercial sector established in
Dhaka Division. In Dhaka Division Janata Bank Ltd disbursed 61.05% where as it
disbursed 27.72% in Chittagong Division, 2.66% in Khulna Division, 0.60% in Sylhet
Division 1.38% in Rangpur Division, 0.87% in Barisal Division, and 5.15% in Rajshahi
Division in 2017.

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5.3 TREND OF INDUSTRY WISE CREDIT DISBURSEMENT

Table 5.3: Industry Wise Credit Disbursement

Particulars % of total loan
Agriculture Industries 2.80%
Rural Credit 18.22%
Term loan to large & medium Industries 23.63%
Working capital to Industries 14.94%
Export credit Industries 5.30%
Import Credit Industries 6.62%
Textile Industries 11.30%
Jute Industries 12.60%
Other Industries 11.10%
Source: JBL Annual Report,2017

Geographical Analysis:

Industry Wise Credit Disbursement in 2017

Agriculture Industries
11.10% 2.80%
Rural Credit
18.22%
Term loan to large &
12.60%
medium Industries
Working capital to
Industries
Export credit Industries

11.30% Import Credit Industries

23.63%
Textile Industries

6.62% Jute Industries

5.30%
Other Industries
14.94%

Figure 5.4: Industry wise credit disbursement

Interpretation:
From the above graph, we can see that Janata Bank Ltd. has disbursed major portion of
loans and advances term loan to large & medium industries, rural credit and Working
capital to Industries sector.

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5.4TREND OF CLASSIFIED LOANS AND ADVANCES

Table 5.4: Classified of Loans and Advances [Tk in Million]

2013 2014 2015 2016 2017

Classified loan and advances 2,893 3,938 3,770 5,688 5350.2
As percentage of total Loans& 3.7% 4.2% 3.5% 6.1% 4.0%
advances
Source: Annual Report: 2013-2017JBL

Graphical Presentation:

Trend in Classified Loan & Advances

5,688
6000 5,350

5000 3,938
4000 3,770
2,893
3000
2000
1000
0
2013 2014 2015 2016 2017

Figure 5.5: Trend in Classified Loan & Advances

Classified Loan as a percentage of Total Loan & Advances

7.00%
6.00%
5.00% 6.10%
4.00%
3.00% 4.20% 4.00%
3.70% 3.50%
2.00%
1.00%
0.00%
2013 2014 2015 2016 2017

Figure 5.6: Classified Loan Disbursement as a percentage of total Loan & advances

Interpretation:
The classified loan & advances of Janata Bank Ltd increased from TK. 2893 million in
2013 to TK. 5350.2 million in 2017. Classified loan as a percentage of total loan &
advances has fluctuated over the years. However the classified loan & advances as
percentage of total credit has increased from 3.7% in 2013 to 4.00% in 2017.

Page | 35
5.5. Category wise Classified Loan:

5.5.1 Sub-Standard as a Percentage of Classified Loan and Advances

Year 2013 2014 2015 2016 2017

Sub-Standard (Tk. in 751.5 811.7 700.6 940.6 89.4
million)
As a % of Total 26% 21% 19% 19% 2%
Classified Loans and
Advances
Table 5.5.1: Sub-standard as a percentage of classified loan and advances

Graphical Presentation:

Sub-Standard as a % of classified Loan & Advances

30.00%
21.00%
25.00%
19.00%
20.00% 26.00%
15.00% 19.00%
10.00%
2.00%
5.00% Percentage
0.00%
2013 2014 2015 2016 2017

Figure 5.7: Sub-standard as a % of classified loan & advances.

Interpretation:

The above graph shows that sub-standard as a percentage of classified loans and advances
have decreased from19% in 2015 to 2% in 2017. But the sub-standard as a percentage of
classified loans and advances has decreased from 21% in 2014 to 19% in 2016.

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5.5.2. Doubtful as a Percentage of Classified Loan and Advances

Year 2013 2014 2015 2016 2017

Doubtful (Tk. in 251.9 1,625.9 923.8 469.1 175.8
million)
As a % of Total 9% 41% 25% 8% 3%
Classified Loans and
Advances
Table 5.5.2: Doubtful as a percentage of classified loan and advances.

Graphical Presentation:

Doubtful as a % of classified Loan & Advances

41.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00% Percentage
25.00%
15.00% 8.00%
10.00% 3.00%
5.00%
0.00% 9.00%
2013 2014 2015 2016 2017

Figure 5.8: Doubtful as a % of classified loan and advances.

Interpretation:

The graph shows that the Doubtful as a percentage of classified loan and advances has
fluctuated over the years from 9% in 2013 to 3% in 2017. However, it has decreased from
41% in 2014 to 8% in 2016.
.

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5.5.3 Bad/Loss as a Percentage of Total Classified Loan and Advances

Year 2013 2014 2015 2016 2017

Bad/Loss (Tk. in 1,889.4 1,500.7 2,145.0 4,278.1 5084.9
million)
As a % of Total 65% 38% 57% 75% 95%
Classified Loans and
Advances
Table: 5.5.3: Bad/Loss as a percentage of total classified loan and advances

Graphical Presentation:

Bad/Loss as a % of classified Loan & Advances

95.00%
100.00% 75.00%
90.00%
80.00%
70.00%
60.00%
50.00% 65.00% 38.00%
Percentage
40.00% 57.00%
30.00%
20.00%
10.00%
0.00%
2013 2014 2015 2016 2017

Figure 5.9: Bad/Loss as a percentage of total classified loan and advances

Interpretation:
The graph shows that the Bad/Loss as a percentage of classified loan and advances has
decreased from 65% in 2013 to 38% in 2014. But it has increased from 38% in 2014 to
95% in 2017.
.

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5.6 PROVISION FOR LOANS &ADVANCES

Table 5.6: Provision for Loans & Advances [Tk in Million]

Year 2013 2014 2015 2016 2017
Provision for Loans & Advances 8,975 11,173 34,012 22,292 24,324
Source:Annual Report: 2013-2017, JBL

Graphical Presentation:

Provision for Loan & Advances

40000
34012.05
35000

30000
24323.37
25000 22291.78

20000

15000 11173.07
8975.26
10000

5000

0
2013 2014 2015 2016 2017

Figure 5.10: Provision for Loan & Advance

Interpretation:
The graph shows that provision for loans for advances increased from Tk. 8,975.26
million in 2013 to Tk. 24,323.37 in 2017 due to increased amount of classified loans and
advances. The highest amount of provision was made in 2015 as because of large amount
of classified loans in that year.

Page | 39
5.7 CREDIT TO DEPOSIT RATIO

Table 5.7: Credit to Deposit Ratio [Tk in Million]

Loans & Advances Deposits Credit to deposit ratio

115,388.89 128,215.97
2013 89.99%
126,169.79 157,331.73
2014 80.19%
151,098.98 193,642.97
2015 78.03%
172,964.72 203,296.18
2016 85.08%
186,179.45 222,112.91
2017 83.82%
Source: Annual Report: 2013-2017, JBL

Graphical Presentation:

Credit to Deposit Ratio

100.00%
89.99%
90.00% 85.08% 83.82%
80.19% 78.03%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2013 2014 2015 2016 2017

Figure 5.11: Credit to Deposit Ratio

Interpretation:
The graph shows that credit to deposit ratio fluctuated over the years. The credit to
deposit ratio was 89.99% in 2013 which was highest. However, the ratio has reduced over
the years. This reducing trend indicates that the Bank has reduced providing loans and
advances using deposit over the years.

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.

Chapter-6
Comparative Analysis

Page | 41
6.1 ANALYSIS OF GROWTH RATE OF LOAN & ADVANCE
Table 6.1: Analysis of Growth Rate of Loan & Advance
Source:

Year 2013 2014 2015 2016 2017

Total National 32,97,500 37,82,470 43,86,160 47,61,510 48,53,997

Credit (Tk. in
million)
JBL Loan and 115,388 126,169 151,098 172,964 186,179
Advances (Tk. in
million)
% of National 3.50% 3.34% 3.44% 3.63% 3.84%
Credit
Annual Report: 2013-2017, JBL

Graphical Presentation:

Loan & Advance of JBL as percentage of national credit

3.90%
3.80% 3.84%
3.70% 3.63%
3.60% 3.50%
3.50% 3.44%

3.40% 3.34%

3.30%
3.20%
3.10%
3.00%
2013 2014 2015 2016 2017

Loan & Advances of JBL as % of Total

Figure 6.1: Loan & Advance of JBL as % of total

Interpretation:
The graph shows that the credit of Janata Bank Limited as a percentage of total national
credit has increased over the years from 3.50% in 2013 to 3.84% in 2017.This indicates
that comparative credit performance of the bank has increased over the years.

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6.2 ANALYSIS OF NON PERFORMING LOAN

Table 6.2: Analysis of Non-Performing Loan

Year 2011 2012 2013 2014 2015

Industry 5.85% 9.73% 8.64% 9.37% 9.29%
Average
NPL JBL 2.83% 4.32% 3.24% 5.26% 7.01%
Source: Annual Report: 2013-2017, JBL
Graphical Presentation:

Comparison of Non Performing Loan

12.00%
9.73%
10.00%

8.00% 9% 9.29%
8.64% 7.01%
5.85%
6.00% 5.26%

4.00%
4.32%
2.00% 3.24%
2.83%

0.00%
2013 2014 2015 2016 2017

Industry Average JBL

Figure 6.2: Non-Performing Loan

Interpretation:
The graph shows that NPL ratio of Janata Bank Limited is lower than the industry
average over the each year of analysis. This indicates that recovery performance of Janata
Bank Limited is better than that of the most of the banks in the banking industry.
However, Non-performing loan of Janata Bank Limited has increased over years

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6.3 ANALYSIS OF CREDIT TO DEPOSIT RATIO
Table 6.3: Analysis of Credit to Deposit Ratio

2013 2014 2015 2016 2017

Industry Average of 85.45% 90.70% 87.60% 81.99% 77.87%
Credit to Deposit
Credit to Deposit of 89.99% 80.19% 78.03% 85.08% 83.82%
Janata Bank Limited
Source:Annual Report: 2013-2017, JBL

Graphical Presentation:

Comparison of Credit to Deposit Ratio

95.00%
90.70%
89.99%
90.00% 87.60%

85.00%
81.99%
85.08%
85.45%
83.82%
80.00% 77.87%
80.19%
75.00% 78.03%

70.00%
2015 2014 2015 2016 2017

Industry Average JBL

Figure 6.3: Credit to Deposit Ratio

Interpretation:
Credit to deposit ratio of Janata Bank Limited is lower than industry average in 2014 and
2015. However, the credit to deposit ratio of Janata Bank Limited is higher than industry
average over the last two years of analysis.
.

Page | 44
Chapter – 7
Findings, Recommendations& Conclusion

Page | 45
7.1 MAJOR FINDINGS
The study, Credit Disbursement and Recovery Performance of Janata Bank Limited
reveals the following majors findings:

 The total deposit of Janata Bank Limited has increased over the years.
 Credit to deposit ratio of Janata Bank Limited has fluctuated over the years, and
credit to deposit ratio is higher than industry average over last two years of analysis.

 The credit of Janata Bank Limited has increased over the years, and credit of Janata
Bank Limited as a percentage of total national credit has increased over the years
from 3.50% in 2013 to 3.84% in 2017.

 Janata Bank Limited provided highest loan in trade finance sector in 2017 which is
35.69%of total credit.
 Non-performing loan of Janata Bank Limited has increased over years.

Page | 46
7.2 RECOMMENDATIONS
The following recommendations can be made to improve the credit performance of Janata
Bank Limited.
 Janata Bank Ltd. should try to increase the growth rate of loans & advances by
providing loans and advances in diversified sectors with attractive terms and
conditions.

 Janata Bank Ltd. should distribute more loans and advances in other divisions
other than Dhaka division.
 As the classified loan ratio increased the bank should try to provide loans to
creditworthy borrowers by following the proper lending principles and developing
proper monitoring & recovery system.

 As the credit to deposit ratio was in decreasing trend, Janata Bank Ltd. should try
to increase this ratio by providing loans to diversified sectors.

Page | 47
7.3 CONCLUSION
From the practical implementation of customer dealing procedure during the whole
period of my practical orientation in Janata Bank Limited, I have reached a firm and
concrete conclusion in a very confident way. I believe that my realization will be in
harmony with most of the banking thinkers. It is quite evident that to build up an effective
and efficient banking system to the highest desire level computerized transaction is a
must. The work experience in Janata Bank Limited,Mirpur-10Branch for the period of
three months internship program was very interesting and enjoyable. Janata Bank Limited
is in the midst of an intense competitive environment of financing industry. However
non-performing loan are a real challenge to the sound credit management. Default is
increasing for lack of monitoring. The bank is trying to increase its loan quality by
accelerating its recovery investments are profitable. The loan procedure has been made
more calculative, logical to keep the credit sound. As a concluding remark I want to say
that the bank is able to continue its banking activities successfully. But the bank must face
new challenges and I think the bank is able to face those challenges. All officers of this
branch were cooperative and friendly. A positive attempt to be more outward looking in
their goals and aware of what is happening.

Page | 48
REFERENCES

 Bangladesh Bank, 2018, Annual Report 2017-2016, Dhaka, Bangladesh.

 Kothari, C. R. , 2004, Research Methodology, New Age International Publishers,
New Delhi, India
 Janata Bank, 2018, JBL Annual Report 2017, Dhaka, Bangladesh.
 Janata Bank, 2017, JBL Annual Report 2016 Dhaka, Bangladesh.
 Janata Bank, 2016, JBL Annual Report 2015, Dhaka, Bangladesh.

Page | 49
APPENDIX

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