We are very pleased to submit Janata Bank Limited Credit Performance Analysis Internship Report. To achieve the goals of a practical orientation, first-rate efforts were directed and the hope that the effort would serve the purpose. I am pleased to confirm that Janata Bank Limited (JBL) Credit Performance Analysis Internship Report by Md.
As a BBA student, internship is one of the most important partial requirements of the entire BBA program. This is a summary of my learning today on "Credit Performance of Janata Bank Limited" as part of my internship report. This report is organized as a requirement of the BBA program in the Department of Business Administration.
The purpose of the study was help to know different types of deposit schemes, lending procedures. In the first chapter, it has been discussed about the opening words of the report, the origin of the record and further objectives of the study. We know that Janata Bank Limited is the country's second largest financial institution.
To find out knowledge about credit policy, credit management, credit risk management and lending procedure of Janata Bank Limited.
METHODOLOGY OF THE STUDY
LIMITATIONS OF THE STUDY
Chapter- Two
Organization Profile
- JBL BOARD OF DIRECTORS
- VISION
- OBJECTIVES OF JANATA BANK LIMITED
- PRODUCT 1. Deposit
- SERVICES 1. E-Service
- Modern Banking
Jnata Bank Limited, the second largest state-owned commercial bank in Bangladesh, plays a crucial role in the country. Since its inception in 1972, the Bank has commendably contributed to the socio-economic upliftment of Bangladesh and also helped in structuring a robust monetary foundation of the country. Including four remote branches in the United Arab Emirates, Janata Bank runs its organization with 913 branches spread across the country with a large household of approximately 11,966 (in terms of staff with its head office at Janata Bhaban in Motijheel C/A, the heart of the capital city, Dhaka.
The Bank's contribution to the nation's financial system and social reforms has set the bar so high that others in this industry cannot manage to reach the benchmark of success achieved through JBL. Janata Bank Limited, a long-relied corporate entity and the second largest commercial financial institution in Bangladesh, plays a central role in the ordinary monetary affairs of the United States. Janata Bank runs its operations with 912 branches nationwide, including 4 overseas branches in the United Arab Emirates.
Janata Bank Limited will be an effective commercial bank by maintaining a stable growth strategy, providing high quality financial products, providing excellent customer service through an experienced management team and ensuring good corporate governance at every step of the banking network. To effectively become the largest commercial bank in Bangladesh, support the country's socio-economic development and be a leading bank in South Asia. To improve customer offering in recent times by introducing a number of IT-based reform measures.
Current Deposit: Current deposit refers to a savings in a financial institution or economic institution account without a specific maturity date. Fixed Deposit Schemes: It is a fixed account that helps your money work for you by earning a higher rate of fun for a fixed period of 3 months, 6 months, one year. Savings Deposit: A savings account is a deposit account held at a retail financial institution that can pay interest but cannot be used immediately as cash in the close experience of a commercial vehicle (for example, through writing of a check).
Special Waiting Period Deposit: Special Waiting Period Deposit Account is the net lubricant of modern transactions such as services and interest payments. Online banking, also called Internet banking, is an electronic pricing device that allows customers of a bank or other economic enterprise to carry out various financial transactions through the website of the economic institution. The online banking device will typically tie into or be part of the critical banking system operated by a bank and is distinct from branch banking, which used to be the normal way customers accessed banking services.
Chapter- Three
CREDIT MANAGEMENT AND RISK
- CREDIT MANAGEMENT
- OBJECTIVES OF THE CREDIT MANAGEMENT
- CREDIT MANAGEMENT PRINCIPLES
- IMPORTANCE OF CREDIT MANAGEMENT SYSTEM
- SYSTEM TO CREATE CREDIT POLICY
- POLICY GUIDELINES OF CREDIT MANAGEMENT
- CREDIT RISK
- PRINCIPLES FOR CREDIT RISK MANAGEMENT
- MEASURING CREDIT RISK METHODS
- CREDIT RISK MANAGEMENT SYSTEM
They will usually deal with verifying customer credit, deciding on any account inquiries, allocating payments, internal movement of funds, coordinating and in addition maintaining effective working relationships with the patron during the debt collection or credit evaluation and approval process. A thoughtful evaluation of the client's monetary deposit and appreciation of their business model is the first step to confirm that the agency now does not stop promoting a patron who ends up in critical delay. One of the most essential activities in your business is credit score management or higher, known as deposit control.
Credit management is the method of ensuring that customers will pay for goods delivered or services provided. This relationship arose between lenders and borrowers under a mutual trust, as the expression "Credit" describes in Latin means. Just to make sure that it gets the capital in return as promised so that the complete way of generating income remains alive with the existence of the bank, there is a convenient way is credit score risk management and what are the motives that can happen additionally. can create an entire machine for handling any risky scenario contrary to sustainability for the bank.
Country risk: Which relates to the person's other country to which the financial institution is exposed and which has a bad effect on the bank's capital due to the bank's inability to acquire the debt for reasons such as political, economic and other circumstances in the borrower's foundation or country. Credit rating is one of the most famous strategies of banks and financial sectors to predict the rating that helps to measure the reliability of the settlement with the borrower. This helps in assessing the nice savings portfolio of a branch financial institution looking at separate activities and industries.
The result of the rating of the device is the measurement of credit rating risk and the distinction of male or female credit and businesses of credits by means of the chance they entail. There are distinctive types of weights assigned according to the severity of the hazard where the areas are economic risks, administration risks, relational risks, industrial risks, business risks and security risks. Borrower Analysis: Reputation, education, travel and age along with success records and net worth of the borrower.
Daffodil International University 16 Historical Financial Analysis: A minimum of three years of monetary data of the borrower should be presented which helps the analysis to address the excellence and sustainability of earning, the money goes with the flow and the strength of the borrower. Infrastructure Facilities: Seasonality of demand, debt-to-equity ratio, borrower's account behavior, security and various relevant elements are taken into account to assess credit risks. One of the most promising features of Janata Bank is its Credit Risk Management System, which allows it to manipulate the mortgage portfolio to minimize loss.
Chapter- Four
FINANCIAL ANALYSIS
LOAN AND ADVANCE: A loan and advance is an economic facility supplied by using the banks and monetary institutions to assist their customers in economic need. Finance is a lifestyles
LOAN & ADVANCE
CREDIT TO DEPOSIT RATIO
DEPOSIT, LOAN AND ADVANCE
Classified loan
Credit to Deposit Ratio
Classified Loan
Return on Loan & Advance
Percentage of Classified Loan
SECTOR-WISE LOAN & ADVANCE
Return on Loan & Advance
Government
Private
Daffodil International University 26 Explanation: Here we see that the bank is increasing their loan investments in the agricultural zone compared to previous years. In 2017 this amounted to 16,472.10 million and in 2018 this was 18,312.90 million. At the same time, the bank has multiplied the loan to service companies, which in 2018 amounts to 60,598 million and is higher than the year before. The bank also expanded their employee mortgage from 2017 to 2018, and in 2018 it was larger than in any previous year.
Chapter- Five
Findings, Recommendations, Conclusions and References
JBL distributes loans without enough security in some cases also sometimes the document verification is completed after the loan is approved. Lack of proper monitoring system in Sector-Wise Loan & Advance, because they provide most of the loan to the private sector, but the public and the government do not get large loan amount. JBL is now not effective in processing and executing delinquent movements against defaulters for their non-payment of loans and advances.
They need to worry about their loans and advances because the total loan and advances will increase during the remaining five years. Before sanctioning the loan, the focus must be on document verification and ensuring sufficient security. JBL's risk management authority must always worry about their work and try to find a better way to reduce the credit risk.
Those people should be found out and pressured to repay the loan and those people should be marked and never given credit. JBL should execute criminal actions against non-payment of loans and advances on their part. They should improve the labor shortage and the lack of desirable education for employees in the credit sector.
Coverage and strategies related to the way banks do business are prepared for the benefit of loans and its regulations. The Credit Division of Janata Bank has a group of highly effective, qualified and dedicated officers and staff who always strive to provide the best services to the customers. Before granting the loan, they analyze whether the loan will be profitable and whether the customer is good enough to repay the loan within the specified period of time.
The general credit things you need to do are compiled through the corporate credit score department and deposit administration of Janata Bank Limited. During the year, the overall credit performance of Janata Bank Limited is more or less effective; the credit recovery position of the classified loan has been gradually reduced. Janata Bank always tries to develop its credit policy to minimize losses and maximize profits.
