Loans and Advances of

Jamuna Bank Ltd

Chapter -1

Introduction
1.1Origin of the Report

To relate theoretical knowledge with practical experience, it is mandatory for the students
of BBA program to work as an intern in an institution, which is known as internship
program. An internship program is essential for the fulfillment of BBA program. This
program provides wide range of opportunities to the potential graduates to gain life long
experience and also help to start a good career.

As a student of Dhaka City College (Department of Business Administration) I also get

the opportunity to do my internship. I was placed in Jamuna Bank Ltd, Dhanmondi
Branch for my internship. The duration of my internship was three months. During my
internship program I have learned different working activities of Jamuna Bank Ltd which
will be helpful for my future career development. It also helped me to prepare this
internship report entitled with “Loans and Advances of Jamuna Bank Ltd”.

In Bangladesh today financial area is one of the most recognized areas in the macro-
economic sector. Economy and finance is carrier of the country. So for the aspects of
economic development banking sector must be developed. In the process of developing a
good economic system private banks are playing an important role in the country. For
this reason, the internship report on “Loans and Advances of Jamuna Bank Ltd” has been
prepared.

Loans and advances mean lending made by the bank to weak clients for earning interest.
Main purpose of loans and advances is to earn profit for the bank. On an average of 70%
to 80% of the bank’s earning comes from interest received against the loans and advances
of the bank. Not only that, loans and advances considered as an asset for the bank as well
as the primary source of earning. On the other hand loan is also the major sources of risk
for the bank management. Bank management always tries to make an appropriate balance
between return and risk involved with the loan portfolio. Although loans and advances
are also helpful for the people to meet up their urgent needs.
1.2Objectives of the Report

The objectives of internship report are as follows:

 To fulfill the partial requirement of BBA program.

 To understand the terms and conditions of various loans schemes.
 To identify the existing procedures and techniques of loans and advances of
Jamuna Bank Ltd, Dhanmondi Branch.
 To identify the problems in loan recovery of the bank.
 To identify interest rate of each loans schemes.

1.3 Methodology of the Report

This internship report is prepared with the combination of practical experience and
theoretical knowledge. As I have my theoretical academic knowledge and also have a
practical experience of banking activities. I have collected data from different sources.
Such as:

1.3.1 Primary Data Sources:

To prepare this report primary data is used mostly. This data is collected from the people
who are related to Jamuna Bank Ltd Dhanmondi Branch. I have gathered primary data by
various ways:

 Face to face conversation with bank manager and other staff of Dhamnondi
Branch.
 Observation of banks activities.

1.3.2 Secondary Data Sources:

I have collected secondary data from following sources:

 Web side of Jamuna Bank Ltd.

 Annual report of the bank.
  Audit report of the bank.
 Official documents.
 Different web sides.

1.4 Scope of the Report

In this report I try to focus on loans and advances of Jamuna Bank Ltd, Dhanmondi
Branch. The bank has different loans schemes for their different types of customers.
Types of various loans, interest rate, different terms and policies maintain by the bank in
case of providing loans all are considered in case of preparing this report.

1.5 Limitations of the Report

While preparing this report I have faced some limitations which are as follows:

 Lack of proper information as this report is done on the bases of only Dhanmondi
Branch.
 Un-availability of recent statistical data.
 Lack of knowledge and experience.
 Difficulty in collecting relevant documents.
Loans and Advances of
Jamuna Bank Ltd
 Chapter -2

Overview of Jamuna Bank

Ltd
2.1 History of Jamuna Bank Ltd

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act,
1994 of Bangladesh with its Head Office currently at Hadi Mansion, 2, Dilkusha C/A,
Dhaka-1000, Bangladesh. The Bank started its operation from 3rd June 2001. Being a 3rd
generation Bank of Bangladesh, it focuses on

 Remaining with time

 Managing change
 Developing human capital
 Creating true customer’s value

The Bank provides all types of support to trade, commerce, industry and overall business
of the country. JBL's finances are also available for the entrepreneurs to set up promising
new ventures and BMRE of existing industrial units. The 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 Bank offers both conventional and Islamic banking through designated branches.
The Bank is being managed and operated by a group of highly educated and professional
team with diversified experience in finance and banking. The Management of the bank
constantly focuses on understanding and anticipating customers' needs. Since the need of
customers is changing day by day with the changes of time, the bank endeavors its best to
devise strategies and introduce new products to cope with the change. Jamuna Bank Ltd.
has already achieved tremendous progress since its beginning. The bank has already built
up reputation as one of quality service providers of the country.

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.
2.2 Vision

To become a leading banking institution and to play a significant role in the development
of the country.

2.3 Mission

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 Corporate Slogan

Your Partner for Growth.

2.5 Objectives of JBL

The objectives of JBL are as follows:

 To earn and maintain CAMEL Rating 'Strong'

 To establish relationship banking and improve service quality through

development of Strategic Marketing Plans.
 To remain one of the best banks in Bangladesh in terms of profitability and assets
quality.
 To introduce fully automated systems through integration of information
technology.
 To ensure an adequate rate of return on investment.
 To keep risk position at an acceptable range (including any off balance sheet risk).
 To maintain adequate liquidity to meet maturing obligations and commitments.
  To maintain a healthy growth of business with desired image.
 To maintain adequate control systems and transparency in procedures.
 To develop and retain a quality work-force through an effective human Resources
Management System.
 To ensure optimum utilization of all available resources.
 To pursue an effective system of management by ensuring compliance to ethical
norms, transparency and accountability at all levels.

2.6 Strategic Priorities of JBL

The bank focuses on some strategies which are as follows:

 Delivering customer’ desired products and services to create true customers’

value.
 Focusing on export of both traditional and nontraditional items and remittance to
ensure a comfortable position of foreign exchange all the time.
 Doing businesses that have higher risk adjusted return.
 Focusing on maintenance of assets quality rather than its aggressive expansion.
 Changing the deposit mix thereby reduce the cost of deposits.
 Ensuring all modern alternative delivery channels for easy access to their services
by customers.
 Taking banking to the doorstep of their target group.
 Restructuring existing products and introducing new products to meet the demand
of time and the target group.
 Entering into new avenues of business to increase profitability.
 Bringing unbanked people into their delivery channels.
 Increasing fee based service/activities where costly capital is not changed.
 Ensuring organizational efficiency by continuous improvement of human capital
and motivation level, dissemination of information and thereby ensuring a
sustainable growth of the organization.
  Maximizing shareholders’ value at all times alongside ensuring a sustainable
growth of the organization.
 Pursuing CSR activities for their continued support to future generation,
distressed people and for advancement of underprivileged people of the country.
 Establishing the brand image as a growth supportive and pro-customers’ bank.
 Strengthening risk management techniques and ensuring compliance culture.
 Remaining cautious about environment and supporting for maintaining a green
and clean soil.

2.7 Core Values

The bank has some core values which are as follows:

 Place customer interest and satisfaction as first priority and provide customized
banking products and services.
 Value addition to the stakeholders through attaining excellence in banking operation.
 Contribute significantly for the betterment of society.
 Ensure higher degree of motivation and dignified working environment for their
human capital.
 Committed to protect the environment and go green.
 Employees of JBL share certain common values, which helps to create an unique
culture.
 Search for professional excellence.
 Ensure best quality service to their clients.
 Quick decision making.
 Flexibility and prompt response.