Internship Report

On
Credit Analysis of Bangladesh Commerce Bank Limited

Prepared for
Prof. Dr M Alimullah Miyan
Vice Chancellor
IUBAT

Prepared by
Rumana Afrose Nure
ID# 11102099
Program: BBA

Date of submission: December 15, 2014

IUBAT- International University of Business Agriculture and Technology.

Letter of Transmittal

December 15, 2014

Prof. Dr. M Alimullah Miyan
Founder and Vice Chancellor
IUBAT International University of Business Agriculture & Technology
4 Embankment Drive Road, Sector 10, Uttara Model Town
Dhaka 1230, Bangladesh

Subject: Submission of Internship Report.

Dear Sir,
I have great pleasure to place before you the report on Credit Analysis of Bangladesh
Commerce Bank Limited. I endeavored to give my best effort and sincerity to accomplish the
task.
I shall be highly grateful and elevated if you kindly accept my work and evaluate it with your
wise judgment.
I have tried, with the best of my capabilities, to accommodate much information and relevant
issues as possible and tried to follow instruction as you suggested. I sincerely believe that it will
satisfy your requirement. I pray and hope that you would be kind enough to accept my report and
oblige thereby.

Yours faithfully,
Rumana Afrose Nure
ID# 11102099
Program: BBA

Certificate of Academic Supervisor

To Whom It May Concern

This is to certify that Rumana Afrose Nure bearing ID: 11102099, has successfully completed
the internship report on Credit analysis of Bangladesh Commerce Bank Limited in partial
fulfillment of the requirements of the degree of Bachelor of Business Administration (BBA) with
specialization in Finance from International University of Business Agriculture and Technology.
In this regard she practically worked in Bangladesh Commerce Bank Limited (Mirpur branch)
under my supervision and instruction.
This report supports the topic title and fulfills the entire requirements. I instructed her to prepare.
Here by, I accept the report as the successful completion of the internship program. During the
program she was sincere, proactive and attentive to her work and I wish her every success in life.

________________________
Mohmed Anwar Hossain
Associate Professor
College of Business Administration
IUBAT

Student Declaration
I am Rumana Afrose Nure a student of Bachelor of Business Administration (BBA), in the
College of Business Administration (CBA) at the IUBAT International University of Business
Agriculture and Technology. I am declaring that this practicum report on the topic of Credit
Analysis of Bangladesh Commerce Bank Limited has only been prepared for the fulfillment
of the course of BUS 490.Practicum as the partial requirement of Bachelor of Business
Administration (BBA). It has not been prepared for any other purpose, reward or presentation.

________________________
Rumana Afrose Nure
Program: BBA
ID: 11102099

Acknowledgement
At the very beginning, I convey my deepest gratitude to the Almighty for blessing me with the
ability to write & submit this report. A large number of individuals have contributed directly and

indirectly in the preparation of this report. I am thankful to all of them for their assistance and
encouragement.
I would like to acknowledge my deepest gratitude to the honorable supervisor Mohamed Anwar
Hossain, College of Business Administration, IUBAT who has given me suggestions regarding
the writing of the report and to go through the process, which has become an excellent way of
understanding the topic of my internship.
I also express my thanks & gratitude to the authority of BCBL to allow me to complete my
practical orientation at their bank and helped me by providing all sorts of information and
financial data for the preparation of this Project Paper. I would like to thank all other officers to
help me despite tremendous work pressure. I would very much appreciate and sincerely
acknowledge suggestions from friends for improving the quality of this Project Paper.
Special mention must be made to some persons from whom I have received continuous support
without which it might not be possible for me to complete the report; among them Ms. Umme
Salma Akter, who has spent her valuable time in supervising my study very closely and
cordially. I cannot deny her suggestions to apply new indebted to her contribution.

Executive Summary

Credit is a core function for commercial banks; therefore the ability to manage this function is
essential for corporate survival. This report describes a step-by-step approach to manage credit of
a bank. Based on the data of the selected bank, the report explains how banks can link their credit
management process with their strategic goals so as to maximize their profits.
Bangladesh Commerce Bank Limited is known as a commercial bank. Bangladesh Commerce
Bank Limited (BCBL) was incorporated on June 1, 1998 and formally started operation from
September 16, 1999. The Authorized and the Paid-up capital of the Bank is Tk.10,000 million
and Tk.1,989 million respectively. Now BCBL has 42 branches all over the country.
Like all commercial banks, BCBL's core business is also obtaining deposits and providing loans.
It is a financial institution providing services for businesses, organizations and individuals.
Services include offering different types of deposit as well as giving loans to organizations and
individuals to accelerate economic development. BCB make its profit by taking small, shortterm, relatively liquid deposits and transforming these into small, medium, larger loans for short,
medium and long term maturity loans.
The report has been segregated into nine 9 chapters, one is the introductory chapter, which gives
its background of the study, describes the objectives, methodology, limitation, designing of
sample, data analysis process and time frame of the study. Chapter two highlights the profile of
the sample bank. Chapter three is about a crucial factor that is the policy guidelines of credit
management. Chapter four outlines the rules and procedural guidelines of credit. Chapter five is
about the loan & advance products & processing system of BCBL. Chapter six provides the
credit performance of BCBL. Project part has been discussed in chapter seven. Chapter eight
gives the findings, recommendations & conclusions of the study. And finally chapter nine shows
the appendices.
The study mainly depends on the secondary data. The objective of this topic is to investigate
periodic position of credit of BCBL and locating the present status, identifying the responsible
factors for is being loss making or profit making for BCBL, finding the initiatives taken by the
BCBL to sustain the present situation The tables in the report show the movement of deployment
of credit, non-performing credit etc. In the light of the findings some recommendations have
been incorporated for the betterment of overall credit performance of the sample bank.

Table of Content

Prefatory Part
Title fly
Title page
Letter of Transmittal
Certificate of Academic Supervisor
Student declaration
Acknowledgement
Executive Summary
Chapter 1 (Introduction)
1.1 Background of the Study
1.2 Objectives of the Report
1.3 Scope of the Report
1.4 Rationale of the Study
1.5 Methodology of the Study
1.6 Designing of the Study
1.7 Data Analysis
1.8 Prepare and Procedure of Time Frame
1.9 Problem of the study
Chapter 2 (Organizational Part)
2.1 Bangladesh Commerce Bank Limited (BCBL) at a Glance
2.2 Historical Background of BCBL
2.3 Branch Information
2.4 Goal of BCBL
2.5 Mission of BCBL
2.6 Vision of BCBL
2.7 Objectives and Targets
2.8 Organizational structure of BCBL
2.9 Hierarchy of the Management of this Bank
2.10 Management Team
2.11 Management Information System (MIS):
2.12 Products and Services of BCBL
Chapter 3 (Policy Guidelines of Credit Management)
3.1 Definition of Credit
3.2 Credit Management
3.3 Objectives
3.4 Credit Policy
3.5 Essential Components of a Sound Credit Policy

3.6 Credit Policy Should Suit the Bank

3.7 Legal Consideration
Chapter 4 (Rules and Procedure guidelines of Credit Management)
4.1 Selection of Borrowers
Approval/Sanction Process
4.3 Lending Guideline
Recommended Delegated Approval Authority Levels
Credit Administration
4.6 Disbursement
4.7 Compliance Requirement
4.8 Credit Monitoring
4.9 Early Alert Process:
Chapter 5 (Loan and Advance Products & Processing System of BCBL)
5.1 Introduction
5.2 Credit Management of BCBL
5.3 Product & Services: Loan & advances of (BCBL)
5.4 Interest Rate of Loan & Advance of BCBL
5.5 Target Customer of BCBL
5.6 Criteria for Selection
5.7 Getting Credit Information
5.8 Information Collection
5.9 Analyzing the Information
5.10 Relevant Matter of Document Checked Before Sanctioning Any Loan
5.11 Papers & Documents Required For Processing of Loan Proposal
5.12 Documentation of the Loan
5.13 Loan Disbursement
5.14 Adjustment
5.15 Facilities provided by Bangladesh Commerce Bank Ltd
Chapter 6 (Credit Performance of BCBL)
6.1 Introduction
6.2 Growth in Loans & Advances of BCBL at a Glance
6.3 Loans and Advances Mix of BCBL
6.4 Distribution of Loan & Advance of BCBL
6.5 Credit Performance /Asset Ratio
6.6 Credit Planning in Micro & Macro Level
6.7 Findings
6.8 SWOT Analysis

Chapter 7 (Project Part)

7.1 Project Part
7.2 Hypothesis Development
Chapter 8 (Findings, Recommendations and Conclusion)
8.1 Findings
8.2 Recommendations
8.3 Conclusion
8.4 Bibliography
Chapter 9 (Appendices)
Appendix: 01
Appendix: 02
Appendix: 03