CHAPTER 1

INTRODUCTION
1.01 Background of Industrial Tour
The industrial tour is an integral part of BBA program., which all students undergo
organized by Faculty of Business Studies, the students are sent to various organizations
where they are assigned to take one of more proects. The students work closely with the
organization and with the people of institutions that are concerned with the organizational
operations..
1.0 O!"#cti$# of T%# &tud'
! started my work with some specified obectives. The obectives acted as a bridge
between the starting point and the goal of the study. The report on (E$aluation of Cr#dit
)anag#)#nt of T%# I*IC Bank +td., has been written as a partial re"uirement for
obtaining the #egree of Bachelor of Business Administration. The basic obective of the
report is to be ac"uainted with the practical aspects of the dealings of the !F!$ Bank. Thus
the report has been prepared for serving the academic purposes only, and not for taking
decisions by the !F!$ Bank%s &anagement or any other organization. But ! have an
obective regarding why ! started my work on such topic. The main obective is to evaluate
and analysis of credit management of !F!$ Bank 'td.
In !ri#f t%# o!"#cti$#s of )' stud' ar# )#ntion#d !#lo-.
i( To identify the main obectives of !F!$ Bank $redit #isbursement.
ii( To find out the sector in which !F!$ Bank provides credit.
iii( To find out a time series analysis of $redit #isbursement.
.
1.0/ Rational# of t%# &tud'
)rivate Banks have of course a vital role in promoting and accelerating the economic
development process as per the demand of time through the implementation of finance for
industrial * agricultural proect, domestic and foreign trade and allocating the fund to
various off+farm employment and self+employment generation proects. Focusing the light
and considering the every pros and cons on available statistical data it has been apparently
accepted that !F!$ Bank continued to register its steady progress in the field of deposits,
advances * foreign e,change business. !n view of the sluggish nature of the economic
activities over the years the deposit performance of !F!$ Bank is more or less satisfactory.
The !F!$ Bank gain ma,imum advantages of foreign e,change related business, the !F!$
Bank policy aims at the integrated operation of all which outlet at home and abroad.
The low rate of economic growth, high rate of unemployment, illiteracy, growth rate of
population, low rate of credit recovery etc. are the impediment factor of economic
development of a country.
!nspired of the above obligations rather in a most favorable situation !F!$ Bank have been
flourishing efficient and endeavoring to the ma,imum of efficiency of its capacity to catch
up with slow growing development of our country.
1.00 &co1# of t%# stud'
!F!$ Bank 'td. is one of the largest private commercial bank, which provide its banking
services through almost seventy si, branches all over Bangladesh and thirty si, branches
of affiliates. This bank is a reputed and leading one in our banking sector for its
performance. ! was assigned to learn practical knowledge from !F!$ Bank 'td., Terri
Bazar branch. ! covered three departments during the period in my practical orientation
and ! tried to portrait the area of organizational overview, -valuation of credit
management, conclusion * recommendation.
CHAPTER
R#s#arc% 2#t%odolog'
.01 2#t%odolog'
The report has been prepared mainly on the basis of secondary data, furnishing by the
!F!$ Bank officials who have also been incorporated in the report wherever it was
considered necessary to maintain the singleness and lucidity of the report. )ersonal
e,perience has been gained by visiting different desks. The collected data are taken from
various sources which are mentioned in the below.
i( Pri)ar' sourc#s3 ! collected some information from primary sources regarding
Accounts #ivision, Terri Bazar Branch of !F!$ Bank.
ii( &#condar' sourc#s3 The maor part of information was collected from the secondary
sources such as.
/ Annual report of !F!$ Bank.
/ 0ffice files and documents
/ Study related books and ournals.
/ )rocedure manual published by the !F!$ Bank, head office.
iii( Discussion -it% conc#rn#d 1#rson3 As study related current data were not available, !
had to discuss with concerned persons for getting up to date information
.0 +i)itation of t%# &tud'.
!t may agree to by the readers of the report that of such a report especially to enrich with
empirical findings, wherever necessary, is a time to consuming matter. As the report was
prepared with a short span of time, the report could not be made comprehensive and
conclusive. &ainly the report could be made descriptive. Some usual constraints ! did face
during the course of my investigation. These are as follows.
/ The main limitation of the study was availability of literature and data and in many cases
the up+to date information had not been yet published.
/ Time constraints impeded me to make in depth study.
/ -ntrance to every corner of the bank was not possible to me.
/ 1elevant paper and documents were not available sufficiently which could aid my
writing this paper.
/ ! had to depend on secondary data for preparing this report.
CHAPTER 0
+ENDIN4 DECI&ION
The principle function of a bank is to lend. 'ending is a dynamic activity. Through the
medium of lending, the banking industry promotes economic activity instill and
encourages, at the individual level, the principle of self+reliance, and yields earnings for
the bank. !t is lending alone that brings banking into a more meaningful and purposeful
contract with public and therefore, has the greatest impact upon them.
!t is a fundamental precept of banking everywhere that advances are made to customers in
reliance on his promise to repay, rather than the security held by the banker. Security is
re"uired by the banker as a protection against une,pected default in repayment by the
customer. Thus, the obect of both e,ternal and internal controls is to ensure the
employment of bank funds in a profitable manner without undue risk of loss to the capital.
Although all lending involves some degree of risk, it is necessary for any bank to develop
sound and safe lending policies and new lending techni"ues in order to keep the risk to a
minimum. The principles of sound lending may, therefore, be summarized on below.
2( &af#t'. Safety is the first guiding principle of a prudent banker. A bank is in business to
make money. !t mainly uses depositor%s fund as a means of its earnings. The money of the
depositor%s being repayable on demand or, after a short notice, determines the capacity of a
bank as to the period for which he can safely lend it out without an uncalculated risk.
Safety should never be sacrificed for profitability.
3( +i5uidit'. 'i"uidity is the availability of bank funds on short notice. !t is not enough
that the money will come back, it is also necessary that it must come back on demand or in
accordance with agreed terms of repayment. The borrower must be in a position to repay
within a reasonable time after a demand for repayment is made4 otherwise, the li"uidity
position of the bank is endangered.
5( Profita!ilit'. $ommercial bank has to distribute its resources in a manner that they
meet the twin re"uirements of li"uidity and profitability. A banker has4 therefore, to see
that maor portion of the assets owned by it are not only li"uid but also aim at earning a
good profit.
6( Pur1os#. A banker would not throw away money for any purpose for which the
borrower wants. The purpose should be productive so that the money not only remains
safe but also provides a definite source of repayment. The banker should study the purpose
for which loan is re"uired and the resources from which the borrower is e,pected to repay.
7( &#curit'. !t is the practice of banks not to lend money without any security. The
security offered for an advance is insurance or a cushion to fall back upon in case of need.
A banker would normally like to recover the advance from the sale of the security. They
would prefer an advance to come back from the normal source. The importance of an
ade"uate and acceptable security can, however, be hardly over emphasized. Security
serves as a safety value for an une,pected emergency. An element of risk is always present
in every advances however securities are not insisted upon, there are chances that the
borrower may raise funds elsewhere by charging them to others and thereby the banker%s
position is eopardized.
8( Dis1osal. The advances should be as much broad+based as possible and must be in
keeping with the deposit structure. The advances must not be in one particular direction or
to one particular industry4 because any adversity faced by that particular industry will have
serious repercussions on the bank.
9( National Int#r#st. Banking industry has significant role to play in the economic
development of a country. The banker would lend if the purpose of the advance is for
overall national development plans necessitating flow of credit to priority sector in the
larger national interest. Sometimes the need of the borrower may be considered so
essential for the benefit of the national economy that despite heavy risks involved the
advance may be granted. !n the changing concept of banking, national interest for
financing in some areas, especially in advances to agriculture, small industries, small
borrowers, and e,port+oriented industries, are assuming great importance.

CREDIT PO+IC6
7.01 2#aning of Cr#dit Polic'
)olicy entails proected course of action. -ach bank should have its own policy of granting
credit although credit is always a matter of udgment applying common sense in the light
of one%s own e,perience.
A sound credit policy includes among other things safety of funds invested vis+a+vis
profitability of the bank. -ncouraging ma,imum number of small loans is better than
concentration in a particular type of advances which ensures sufficient li"uidity with least
incidence of bad debts.
!t has to be borne in mind that a good loan allowed to a properly selected borrower is half
collected. !n order to make a good loan there should have a good loan policy.
7.0 O!"#cti$# of Cr#dit Polic'
There are some obectives behind a written credit policy that are as follows.
/ To provide a guideline for giving loan.
/ To )rompt response to the customer need.
/ To Shorten the procedure of giving loan.
/ To 1educe the volume of work from top level management.
/ #elegation of authority to the middle level management.
/ To check and balance the operational activities.
7.0/ I)1ortanc# of Cr#dit Polic'.
The necessity of a written credit policy is to provide a framework of standards and points
of reference within which individual lending personnel can operate with confidence,
relative uniformity, and fle,ibility. 'ending officers will then be able to make their own
decisions within delegated authority, without the necessity for constant referral to higher
management.
:ithout such a written policy, there is a tendency to concentrate all decision making in
one or two people at or near the top, with the obvious disadvantages of slower decisions
and the inability of loan officers to develop their full potential. The other tendency is to
foster a dangerous diversity of lending practices and philosophies within the organization,
probably leading ultimately to an in+ordinate number of problem loans. !n addition to
establishing uniform guidelines for loan officers and satisfying the regulator agencies, a
written credit policy can aid bank management in defining the obectives of the bank. 'ike
any other business, the commercial banks establish particular obectives to be met.
7.00 *or)ulation of Cr#dit Polic'.
0ne of the "uestions that should arise in a discussion of credit policy is who should
formulate the policy. Although the ultimate responsibility lays at the highest level in the
organization i.e. the board of directors, yet the actual drafting shall have to be done by the
senior lending officer in consultation with the chief e,ecutive officer and with
contributions from senior officers, associates and subordinates. 0bviously, the level of
origin will vary with the size and structure of the organization. The matter than be referred
to the board for approval after careful e,amination, consideration and discussion.
7.08 D#cision fro) $arious studi#s.
-ssential $omponents of A Sound $redit )olicy
There can be some variations based on the needs of a particular organization, but at least
the following areas should be covered in any comprehensive statement of credit policy.
1. +#gal consid#ration. The bank%s legal lending limit and other legal constraints should
be set forth to avoid inadvertent violation of banking regulations.
. D#l#gation of aut%orit'. -ach individual authorized to e,tend credit should know
precisely how much and under what conditions he or she may commit the bank%s funds.
These authorities should be approved, at least annually, by written resolution of the board
of directors and kept current at all times.
/. T'1#s of cr#dit #9t#nsion. 0ne of the most substances parts of a loan policy is a
delineation of which types of loans are acceptable and which type are not.
0. Pricing. !n any profit motivated endeavor, the price to be charged for the goods or
services rendered is of paramount. :ithout it, individuals have few guidelines for "uoting
rates or fees, and the variations resulting from human nature will be a source of customer
dissatisfaction.
8. 2ark#t ar#a. -ach bank should establish its proper market area, based upon, among
other things, the size and sophistication of its organization, its capital standpoint, defining
one%s market area is probably more important in the lending function than in any other
aspect of banking.
7. +oan standards. This is a definition of the types of credit to be e,tended, wherein the
"ualitative standards for acceptable loans are set forth.
:. Cr#dit granting 1roc#dur#s. This subect may be covered in a separate manual, and
usual is in larger banks. At any rate, it should not be overlooked because proper
procedures are essential in loan establishing policy and standards. :ithout proper
procedures for granting credit and constant policing to ensure that these procedures are
meticulous carried out, the best conceived loan policy will not function and, inevitably,
problems will develop.
7.07. +#nding 4uid#lin#s Bas#d On Diff#r#nt R#s#arc% Points .
As the Bank have a high rate of non performing loans. Banks risk taking applied should be
contained and our focus should be to maintain a credit portfolio keeping in mind of Banks
capital ade"uacy and recovery strength. Thus Banks strategy will be invigorating loan
processing steps including identifying, measuring, containing risks as well as maintaining
a balance portfolio through minimizing loan concentration, encouraging loan
diversification, e,panding product range, streamlining security, insurance etc. as buffer
against une,pected cash flow.
$onsidering the above few 'ending guidelines are elaborated below.
:.071 Industr' and !usin#ss s#g)#nt focus.
Industr' *ocus Trading ;Busin#ss *ocus
i. Te,tile i. #istribution
ii. )harmaceuticals ii. Brick field
iii. Agro+based iii. 1ice &ill;Flour &ill;0il &ill.
iv. Food and allied iv. :ork order
v. Telecommunication v. <arn trading
vi. )ower generation and distribution vi. $loth merchant
vii. =ealth care vii. !ndustrial spares
viii. -ntertainment viii. =ardware
i,. Services i,. -lectronic * -lectrical goods
,. $hemicals ,. $onstruction materials
,i. Transport ,i. Fish trading
,ii. !nfrastructure #evelopment ,ii. >rocery
,iii. 'inkage industries ,iii. :holesale;retails
,iv. !nformation Technology ,iv. 0thers as decided from time to time
,v. $eramics
,vi. 0thers as decided from time to time
7.07 T'1#s of cr#dit faciliti#s.
Bank will go for.
/ Term financing for new proect and B&1- of e,isting proects ?'arge, &edium,
S&-, S$!(
/ :orking $apital for industries, trading, services and others ?'arge, &edium,
S&-, S$!(
/ Trade finance for import and e,port +
/ 'ease Finance.
/ Small loan for Traders, &icro enterprise and other productive small venture.
/ $onsumer Finance
/ Fee business
/ !slamic mode of finance
7.07/ &#ctor -is# +#nding ca1s
Sector wise 'ending caps of the !F!$ Bank as given below.
?Amount in $rore Taka(
&#ctor3-is#
Ad$anc#s as on
/1.1.0:
Sectors;Sub+sectors Amount @ of Total
Advance
2. Agriculture 3623ABCCC C.A
3. Dute industries 3363B2CCC C.B
5. Te,tile industries 368C2C2CCC B.89
6. >arments industries E 76C2B7CCCC 2A.C7
7. $hemical and chemical products 25899CCCC C.6B
8. Transport 586978CCC 2.3A
9. $onstruction firms 3872926CCC A.57
B. $ements industries 2963CCCCC C.82
A. Bricks and ceramic 2893A8CCC C.7A
2C.>lass industries 6C678CCC C.26
22. Food products and processing 2385978CCC 6.68
23. -ngineering and metal 3558CACCCC B.36
25. #rugs and pharmaceutical 282B69CCC C.79
26 'eather industries 27A65CCC C.C8
27. )aper and paper product industries 235B5BCCC C.66
28.0ther small industries 2779C6CCC C.77
29. !T sector 39B6C3CCC C.AB
2B.0ther service industries 2BC32BCCC C.86
2A.$ommerce and trades EE 8C9755BCCC 32.63
3C. =ousing societies ; companies 972C7CCCC 3.87
32. $old storage 3C52A9CCC C.93
33. Fon banking financial institutions 235A8BCCC C.66
35. $onsumer finance 2BB652CCC o.88
36. -nergy 379B7ACCC C.A2
37. Tele communication 535638CCC 2.26
38. 0thers 6C7A889337 26.52
Total 3B582678337 2CC

&ourc#. Annual r#1ort 00: of I*IC Bank +i)it#d
Anal'sis. Sector wise lending caps collected from annual report 3CC9 shows that the bank
provides the highest loans in commerce and trade and garments industry sectors
respectively. The reasons of such priority are that commerce and trade and garments
industry provide immediate recovery of loan granted and in easy ways.
CHAPTER :
+OAN& < AD=ANCE&
:.01 Introduction
Banking business is like all other profit+oriented business. !t depends mainly on how much
profit they can make. )rofit is the yardstick for the bank to move on. Banking is a business
that deals only with money and credit. They work as reserves of GsavingsH of the
community and also as lenders or investors for trade business and industry. Banks are
profit oriented. They invest their funds in many to earn income. =uge amount of income
derives from loans and advances. $redit is continuous process. 1ecovery of one credit
gives rise to another credit. !n this process of revolving of funds, bank earns income in the
form of interest. A bank can invest its fund in many winces to traders, businessmen, and
industrialists against the security.
:.0 Targ#t Custo)#rs of T%# I*IC Bank +td.
The customers for the loan services are categories as follows.
/ !ndividual person.
/ Sole proprietorship firms.
/ )artnership firms.
/ )rivate limited company.
/ )ublic limited company.
/ >overnment and semi government organization.
/ Bank employees.
.
>%' t%# !ank 1ro$id#s ad$anc#s to t%# !orro-#rs
/ To earn interest from the borrowers and give the depositors interest back.
/ To accelerate economic development by providing different industrial as well as
agricultural advances.
/ To create employment by providing industrial loans.
/ To pay the employees as well as meeting the interest groups.
:e often use loans and advances as an alternative to one another. But academically this
concept is incorrect. Academically advance is the combination of such items where loan is
a part only. For this credit section of this bank is known as advance section.
:.08 T'1#s of Ad$anc#s
!t is not possible to discuss all types of advances in details in this report but an attempt has
been made to analyze the basic difference and characteristics of these advances all in the
following.
Advances
Staff 'oan
Staff =ouse
Building 'oan
Staff 'oan against
)rovident Fund
0verdraft
Secured
0verdraft
'oan
>eneral
$ash $redit
$$+=ypo $$+)ledge
Term 'oan
!ndustrial 'oan 0thers 'oan
=ouse Building
'oan+=B'
Transport 'oan
Bank >uarantee
Bid Bond )erformance
Bond
Bills )urchased
and #iscounted
Scheme
$onsumer $redit
Scheme
!nvestors Accounts
:.081 O$#rdraft
E 0verdrafts are those drawings, which are allowed by the banker in e,cess of the
balance in the account up to a specified amount for definite period ?normally 2
year( as arranged for.
E 0verdraft facility is generally given to the businessmen for e,pansion of their
business.
E Any deposit in the S0# account is treated as repayment of overdraft.
E >enerally it is provided against F#1, )S) or any primary security.
E Formally it is provided with 7@ for personal 0# but 2C@ for institute 0#
margin, but it may vary.
&#cur#d O$#rdraft3&OD +oan 4#n#ral3+4
2.
3.
5.
6.
0nly businessmen can open this. 0nly
$# Account holder can open this.
!nterest rate is 27.7@ with
"uarterly rest and 3@ above F#1
1ate.
!nterest starts from the date of first
withdrawal.
2.
3.
5.
6.
Anyone can open this account. Both
$#;SB account holder can open this.
!nterest rate is 27.7@ with
"uarterly rest and 3@ above F#1 1ate.
!nterest starts from the date of sanction
of the overdraft.
:.08 Cas% Cr#dit ; >orking Ca1ital3 CC;>C
/ $ash credit is given through the $ash $redit ?$$( account.
/ $ash $redit account is basically a current account4 however a little difference
e,ists between them. The distinction between a current account and a cash credit
account is that the former is intended to be an account with credit balance and the
letter is an account for drawing of advances.
/ 0peration of cash credit is same as that of overdraft. The purpose of cash credit is
to meet working capital needs of traders, farmers, and industrialists.
Cas% Cr#dit ?H'1ot%#cation@ Cas% Cr#dit ?Pl#dg#@
2.
3.
5.
6.
!t is a charge against a property for a
debt where neither the ownership nor
the possession is passed to the
Banker.
!t is granted only to first class party.
!nstrument+=ypothecation deed.
)ossession of goods is surrendered to
the lender when called upon to do so.
$harge is then converted to pledge.
2.
3.
5.
6.
!t is a charge against a property for a
debt where the ownership remains to
the borrower but the possession is
passed to the Banker.
!t is granted to all types of parties.
!nstrument+ )ledge deed.
!n case of default, Bank may sell the
security on giving the debtor
reasonable notice of sale.
:.08/ T#r) +oans
T'1#s of T#r) +oans C%aract#ristics
1. Industrial +oans E !t is given for 5 years at e"ual monthly installment
E !nterest rate is 25.CC@.
E >race period is allowed depending on types of proect.
E This is given to facilitate the industrial growth.
. Trans1ort +oans E This is given to accelerate the transport facility
nationwide.
E !nterest rate is 25.CC@.
E !t is given for 7 years at e"ual monthly installment.
E 0thers condition are almost same as the industrial
loans.
/. Hous# Building +oans E This is given for the construction of dwelling house.
E !t is given for 27 years at e"ual monthly installment.
E !nterest rate is 27.CC@.
E !t is given for 27 years at e"ual monthly installment.
E This loan is not given fre"uently.
0. Ot%#rs +oan3Including
Agricultur# +oan
E Actually Agricultural loan is not given from this branch
of The !F!$ Bank but all other items e,cluding the
mentioned above will go under this head of term loans.
:.080 &TA** +OAN&
1. &taff Hous# Building +oan3&HB+
Staff house building loan is provided to the employees having 7 years continuous
confirmed service in the bank. $eiling of this loan is 27C times of basic salary. Security of
the loan is the legal mortgage of the land. 1ate of interest is 2@ more than Bank rate that
is 8.CC@ simple rate ?no compounding rate(. 1epayment procedure is 36C e"ual monthly
installments. !t is started after 8 months from the date of 2
st
disbursement of the loan.
1epayment is adusted from their monthly salary. )rinciple amount is adusted first, and
then interest is adusted.
. &taff +oan Against Pro$id#nt *und3&P*
This loan facility is provided only for The !F!$ Bank staff. !n the provident fund, 2C@ of
basic salary is contributed by employee in every month and also 2C@ of basic salary of the
employee is contributed by the bank. Any continuous confirmed staff can apply for this
loan. The rate of interest is B@ ?simple rate(. 1epayment is adusted from their monthly
salary.
H#ad offic# allo- loan to staff against t%#ir 1ro$id#nt fund as 1#r t%# follo-ing
crit#rion.
&+.
No.
Crit#rion P.*. +oan
C#iling
R#1a')#nt P#riod
?2a9.@
3. -mployees having 7 years but less than 9
years continuous confirmed service in the
bank.
8C@ of both
contributions.
6B e"ual monthly
installments.
5. -mployees having 9 years but less than 2C
years continuous confirmed service in the
bank.
9C@ of both
contributions.
6B e"ual monthly
installments.
6. -mployees having 2 C years and above years
continuous confirmed service in the bank.
BC@ of both
contributions.
6B e"ual monthly
installments.
:.088 Bank 4uarant##
The bank very often re"uested by his customer to issue guarantees on their behalf to a
third party+ committing to make an unconditional payment of certain amount of money to
the third party, if the customer ?on whose behalf it gives guarantee( becomes liable, or
creates any loss or damage to the third party. !t is a contingent liability for the bank. Bank
is charged 2@ or 3@ commission for this guarantee. After the e,piry of the guarantee
period Bank is no longer liable to the third party. Bank guarantee is generally issued by the
banker for payment of tender.
T'1#s of Bank
4uarant##
C%aract#ristics
1. T#nd#r or
Bid Bond
E !t is issued on behalf of contractor in favor of firms, giving a
sort of guarantee for payment of money where tender has been
approved but the contractor is not willing to proceed with it.
E !t is normally issued for a period of 5 to 8 months against
higher cash margin.
. P#rfor)anc#
4uarant##
E !f a contract is awarded to the contractor he would be
re"uired to furnish a guarantee whereby his e,ecution of
contract as per terms and conditions agreed is guaranteed. This
is known as performance guarantee.
E !t would re"uire high cash margin in addition to collateral
security with power of attorney to collect bills.
/. Ot%#rs
4uarant##
E 0thers guarantee which is issued by the bank include+
Shipping guarantee, !nvestment bank guarantee, $ustoms and
-,cise guarantee, >uarantee on account of foreign
correspondent, and #eferred payment guarantee.
:.087 Bill Purc%as#d < Discount#d
Sometimes banks are to purchase bills of e,change of businessmen to facilitate
commercial transactions. )urchasing of inland bill of e,change arising out of commercial
transaction is called inland bill purchased. Bank purchase two types of inland bill which
are as follows.
1. Cl#an Bill. $lean bills are that bill which re"uires no document for payment like
$he"ues, #emand #raft, )ay 0rder, Tele, Transfer, and &ail Transfer.
. Docu)#ntar' Bill. :hen the drawer of a bill encloses the documents of title to
goods, such as, Bill of 'ading, 1ailway 1eceipt, Steamer 1eceipt, to be delivered
to the drawee of the bill on payment or against acceptance of bill, as the case may
be, the bill is called #ocumentary bill. This is often created in business and the
Bank purchases these before their maturity.
!n case of G#iscounting of BillH the charges are more because the bank, besides charging
for the service rendered, will also charge for interest from the date of discounting the bill
till the date of maturity.
!n all the cases of purchasing and discounting of bills, the bank is granting advance to the
customers and, therefore, GBills )urchased and #iscountedH are shown as advances by a
bank in its balance sheet.
:.08: Consu)#r Cr#dit &c%#)#
The obective of this loan is to provide credit to the customer ?Service =older( for
purchasing of essential =ousehold durable like+ computer, Television, Sound System,
Sewing machine, Furniture etc. The borrower e,ecuted the following documents in the
Bank%s favor to secure the loan.
/ #emand )romissory Fote ?Single(.
/ 'etter of Arrangement.
/ 'etter of !nstallment.
/ 'etter of #isbursement.
/ 'etter of =ypothecation.
/ )ersonal guarantee signed by the 5rd party with particulars of guarantee form+$.
/ Assets and 'iability position of the borrower.
/ &onthly income of the borrower.
By considering those documents Bank provides loan to borrower under the following
terms and conditions.
2argin. 3C@ on the value of the household items to be purchased.
R#1a')#nt. 1epayment procedure is 36;58;6B e"ual monthly installments.
&#curit'. =ypothecation of the purchased assets.
Rat# of int#r#st. 28@ ?1evised from time to time(.
E9t#nt of li)it. The loan amount sought can not e,ceed BC@ of the purchased price.
:.07 Di$#rsification of Cr#dit
As per Bangladesh Bank rule on credit, !F!$ Bank can e,tended BC@ of its deposits. !F!$
Bank e,tends credit in four sectors which are organized under a broad sector.
:.071 Agricultural Cr#dit
About B7@ people of rural area are engaged in agricultural activities. But most of them do
not have enough money to cultivate their land. Inder this category !F!$ Bank provides
credit in various agricultural activities such as crops, fisheries, and live stocks, ute * ute
goods e,port etc.
:.07 Industrial Cr#dit
Bangladesh is a developing country. :e have to develop industry for the economic growth
of the country. But most of the people of our country do not have sufficient capital to
develop industry. Inder this category !F!$ Bank provides credit in various industrial
activities such as small * cottage industry, big and medium industry.
:.07/ Co))#rcial Cr#dit
!F!$ Bank gives credit to purchase commercial goods. As a result the producers of goods
can sale their outputs and the traders can do their business efficiently. Inder this sector
!F!$ Bank provides credit for various activities such as trade, e,port, import, working
$apital etc.
:.070 Ot%#r Cr#dit
&any of our country want to organize some productive activities. But they do not achieve
their goal for lack of capital to meet up their needs for capital, !F!$ Bank helps to improve
the socio+economic condition of the country. Inder this sector Bank provides credit for
various activities such as =ousing, $onsumption, $onstruction, Transportation, and
-"uipment ?&edical( etc.
:.0: 4#n#ral Proc#dur# *or +oans And Ad$anc#s
The following procedure is applicable for giving loans to the customer. These are.
:.0:01 A11lication for loan
The borrower applies for the loan in the prescribed form of the bank describing the types
and purpose of loan.
:.0:0 4#tting Cr#dit Infor)ation
The bank collects credit information about the applicant to determine the credit worthiness
of the borrower. Bank collects the information about the borrower from the following
sources.
/ )ersonal investigation.
/ $onfidential report from other bank =ead 0ffice;Branch; $hamber of the
$ommerce.
/ $!B 1eport from $entral Bank.
:.0:0/ Infor)ation Coll#ction
The loans and advance department gets a form filled by the party seeking a lot of
information. The information%s are listed below.
/ Fame and address of the borrower ?present and permanent(.
/ $onstitution or status of the business.
/ #ate of establishment and place of incorporation.
/ )articulars of properties, )artners, and #irectors.
/ Background and business e,perience of the borrowers.
/ Fature and details of business;products.
/ #etails of re"uested credit facilities.
/ #etails of securities offered.
/ )roposed debt e"uity ratio.
/ 0ther relevant information.
.
+#nding Risk Anal'sis3+RA.
'1A is a very important and vital analysis for deciding whether the loan proposal is
potential or not. &any types of scientific, mathematical, statistical and managerial tools
and devices are re"uired to perform this analysis.
The !F!$ Bank Terri Bazar Branch maintains a prescribed format containing 26 pages for
'ending 1isk Analysis, which includes a Spreadsheet to analyze a lot of things. !t is not
possible to discuss the entire '1A in this report, but the entire framework under which it
works has given in the following manner.
+#nding Risk Anal'sisA+RA
a( !ndustry 1isk.
i( Supply 1isk+ :hat is the risk of failure to disruption in the supply
of inputJ
ii( Sales 1isks+:hat is the risk of failure due to disruption of salesJ
b( $ompany 1isk.
2. $ompany )osition 1isk .
i( )erformance 1isk+:hat is the risk that the company position is so weak that it
can not perform well enough to repay the loan, given e,pected e,ternal conditionJ
ii( 1esilience 1iskKwhat is the risk of failure due to lack of resilience to
une,pected e,ternal conditionsJ
3. &anagement 1isk.
i( &anagement $ompetence 1iskKwhat is the risk of failure due to lack of
management competenceJ
ii( &anagement !ntegrity 1iskKwhat is the risk of failure due to lack of
management integrityJ
$. Security 1isk.
i( Security $ontrol 1iskKwhat is the risk that the bank fails to realize the securityJ
ii( Security $over 1iskKwhat is the risk that the realized security value is less
than the e,posureJ
:.0:08 R#l#$ant 2att#r of Docu)#nt C%#ck#d B#for# &anctioning an' +oan
/ There must be an account of the person want to take loan. The account must have
a transaction for not less than 5 months to 8 months4 otherwise the loan will not be
sanctioned.
/ After checking the duration of account then the transaction made by the account
holder must be checked. The debit credit position must be also checked, because it
is related with future dealings of the borrower.
/ The purpose for what the loan is taken by the borrower is another important
matter to see and check. :hether the purpose is business or else must be checked
with its marketability. Because there is risk of fraud and forgery by the borrower
by seeing one purpose in cash of doing any illegal business.
/ The banker should check through security whether it is enough or not.
:.0:07 Pro1osal Anal'sis
The proect proposal is analyzed and decision about the proect is taken. Bank evaluates a
loan proposal by considering few predetermined variables. These are.
/ Safety.
/ 'i"uidity.
/ )rofitability.
/ Security.
/ )urpose of the loans.
/ Sources of repayment.
/ #iversification of risks etc.
:.0:0: Collat#ral E$aluation
The !F!$ Bank, Terri Bazar Branch is very cautious about valuation of the collateral. The
bank officials and simultaneously evaluate the collateral the party offers by private firm.
This two way valuation of the collateral increases the accuracy of its value estimated.
Three types of value of the collateral are assumed.
/ $urrent market price.
/ #istress price.
/ )rice after five years.
The legal officers of the bank check the documents ascertain their impurity.
:.0:0B *inal D#cision A!out t%# Pro"#ct
!f the loan decision remains with the branch level, branch sanctions the loan and if the
approving authority is head office then the decision comes to the branch by tele, or fa,.
:.0:0C Pro1#r &u1#r$ision of t%# Pro"#ct
!f such provision is kept in the sanction contracts, the bank officials go to the proect area
and observe how the loan is utilized. !f no such clause to supervise the loan is added, even
then the bank can see the performance of the proect.
:.0:10 Docu)#ntation of t%# +oan
These are the most fre"uently used and common documents for creation of above
mentioned charged and for other formalities for sanctioning the loan.
/#emand promissory note. =ere the borrower promises to pay the loan as and
when demanded by the bank to repay the loan.
/'etter of Arrangement. =ere the written amount of the loan sanctioned to the
borrower is specified.
/'etter of $ontinuity. !t is used to take continuous facilities as providing
continuous securities.
/'etter of =ypothecation. !t is the written document of the goods hypothecated
thus to put in case of need.
/Stock 1eport. This report is used for S0# and $$. in this report, information
about the "uality and "uantity of goods hypothecated furnished.
/&emorandum 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
property.
/)ersonal guarantee. !t is the additional confirmation of the borrower to repay.
/>uarantee of all the directors of the company.
/1esolution of the board of directors. !t is used to borrow the fund to e,ecute
documents and complete other documents.
/'etter of disclaimer. By this letter, the borrower withdraws his all claim on the
property;goods liened;mortgaged.
/Form no. 2B;2A for filling charges with the register of oint stock companies under
relevant section.
/'etter of Acceptance. 'etter indicating the acceptance of the sanction proposal by
the borrower.
/'etter of )ledge. !t is the written document of the goods pledge thus the legality
of holding the goods.
/'etter of #isbursement. This is the document through which the payment of
sanctioned loan indicates.
/'etter of )artnership. !n case of partnership firm, the partnership deeds are to be
provided.
/'etter of !nstallment. The amount of installment that is to be paid at certain
intervals.
/!nsurance )olicy. !t shows the up+to+date insurance profile of the customer.
/Ta, )aying $ertificate.
/Any document if described, as essential in the sanctioned advice sanctioned by the
head office.
E9isting Proc#ss of Handling +oans
-,isting loan !nformation -valuating proect
)roposal $ollection and proposal
About About Branch 'evel
)roect )arty -valuation
'egal -valuating $ollateral
Assessment
-valuating
By Agent
Isual Branch
1ecovery 'evel
1ecovery of Supervision Sanctioning * #ecision
the loan of loan disbursing loan
'egal =ead 0ffice
1ecovery 'evel
:.0:11 E9#cution of Docu)#nts
-,ecution of documents should be done with stamping a re"uired under stamps act. There
are three kinds of stamp which is used for e,ecution of documents.
i( Dudicial3T%#' are of special mark used in the courts.
ii( Non Dudicial3It is printed on special paper in different denominations and used for
e,ecution of agreements. !ndemnity bond, sale deed, mortgage deed etc. are also called
impressed stamp.
iii( Ad%#si$#+1evenue stamps, Special adhesive stamps and affi,ed as re"uired on
documents like promissory note. !t is receipt on standard printed form such as 'etter of
continuity, 'etter of pledge, 'etter of hypothecation, 'etter of lien, Supplementary
agreement, 'etter of guarantee, Trust 1eceipt etc. such stamp are needed to be canceled in
an effective manner so that the same can not be used again.
#ocuments to be e,ecuted ?signed( by parties concerned competent to do so either in
official capacity or in personal capacity as the case may be. !n some cases such documents
are re"uired to be e,ecuted in presence of witness.
The following precautions are to be taken at the time of e,ecution of documents.
#ocuments to be filled in and are e,ecuted in the presence of the manager or an authorized
officer of the bank. =e must put his initial in pencil so that in future it can be ascertained
in whose presence the documents were e,ecuted. =e may have to depose in a court in
future. The client should sign in accordance with the specimen signature recorded with the
bank. !f documents consist of more than one page, all the pages are to be signed by the
e,pectant at the end of the form and also at the end of the schedule of securities. &ention
of date and place of e,ecution on a document is mandatory.
:.0:1 Cr#ation of C%arg#s for &#curing +oan
T%# co))on )#t%ods of c%arging s#curit' and t%#ir natur# ar# d#scri!#d !#lo-.
2od# of &#curit' Natur# of s#curit' < its c%aract#ristics
'ien E $ash, cash collateral and documents of the title to the
goods.
E !t is the right of the banker to hold the debtor%s properly
until the debt is discharged+generally retained by the bank
in its own custody or to the hands of third party with lien
marked.
E The third party cannot discharge it without the permission
of the bank.
E !n case of need bank needs the permission from the court
to sell the property.
Assignment E Borrower transfers the right of property or debt to the
bank.
E 'ife insurance policies, supply bills, book debt of the
borrower can be assigned.
)ledge E &oveable stock of raw materials, finished goods,
merchandise.
E )ledge is also lien but here bank enoys more right.
E )hysical transfer of goods to the bank is must.
E Bank can sell the property without the intervention of any
court, in case of default on loan.
=ypothecation E &oveable stock of raw materials, finished goods,
merchandise.
E >oods remain in the hands of debtor, but documents of
title to goods are handed over to the banker. This method is
also called Le"uitable chargeL.
E Bank inspects the goods regularly to udge its "uality and
"uantity for the ma,imum safety of its loan.
&ortgage E &ortgage is the transfer of specific immoveable property+
like land, building, plant etc.
E &ost common type of mortgage is legal mortgage in
which ownership is transferred to the bank by registration
of the mortgage deed.
E Another method called e"uitable mortgage is also used in
bank for creation of charge. =ere mere deposit of title to
goods is sufficient for creation of charge. 1egistration is not
re"uired. !n both the cases, the mortgaged property is
retained in the hand of borrower.
Trust 1eceipt E !ntangible asset ?goodwill(
E !t is used in foreign e,change business.
CHAPTER B
RECO=ER6 O* +OAN& AND AD=ANCE&
To lend money is an easy matter. To be sure of recovery of the loan is not that easy. Fo
banker whatsoever careful and diligent he is in granting advances succeeds on getting all
the money that has been advanced. :ith the outcome of social responsibilities of the
commercial banks to make advances to the priority sectors the situation has been
becoming more and more comple,. The most serious problem that affects the entire
banking industry today is the problem of recovery of bank advances.
From the bank%s point of view, this is important for at least two reasons.
i( !f the borrower has no or has indefinite plans for repayment of the advance, it
may indicate that the loan is too risky or is too speculative for the bank to handle.
ii( !f the borrower has a plan for the repayment of the loan, the banker is placed in
a position to consider the source from which the funds will come for repayment
and to analyze the risk involved more intelligently.
B.01 *indings for non3r#co$#r' of loans;ad$anc#s
a( /Fot careful about the weak points while preparing credit proposal.
/ Fegligence in carefully implementing terms of sanction letter, as a result, loans
remain faulty.
/ Borrowers take advantage of the situation.
/ Failure of the controlling office in monitoring the recovery.
b( Selection of borrower%s essential pre+re"uests of good loan not properly done.
/ =is 5 $Ms 5 1Ms or 7 $Ms or 8 $Ms not properly assessed, hence recovery becomes
difficult.
c( Feasibility study not properly done, proect not properly implemented leading to loan
becoming undue.
d( All important re"uired papers not obtained before disbursement, law officer not
consulted legal actions become difficult.
e( :rong valuation of pledged goods mortgaged properly over valuation. Branch
managers in some cases not aware that goods actually pledged.
B.0 Proc#dur# *or R#co$#r'
!f a borrower fails to make repayment of the dues the bank has to consider what steps need
to be taken to recover the debt. Banker will eventually have to take the following steps to
recover the stuck up advances.
a( -,isting loans ?all categories(.
/ #iarizing due dates of repayment.
/ 1egular follow+up.
/ )eriodical inspection.
/ Surprise visits.
b( 0verdue loans;advances.
/ )reparation of "uarterly lists. Branch copy, controlling office copy and head
office copy.
/ Attempts made for adustment of loans before application of "uarterly interest.
/ &ust be adusted before being classified.
c( $lassified loans;advances ?Substandard, doubtful and bad.(.
/ Targets for recovery.
/ Steps for declassification.
d( !nterest e,emption.
/ Nuick decision.
/ $ommunication of decision "uickly.
B.0/ R#)#dial 2#asur#s of +oan R#co$#r'
/ Ascertain reasons for non+payment.
/ )ersuasion.
/ Fegotiation.
/ 'itigation.
/ Training and motivating of staff.
/ $lassification of Borrowers to A, B, $ * #.
/ &anager handles L#L type customer.
B.00 &trat#gi#s *or R#co$#ring of +oan
Following are some strategies that yield appreciable results.
/ Tailor+made strategies for different problems must be prescribed.
/ Timely wisdom alone works as timely strategy.
/ 1ecovery often proves effective when follow+up done with co+
obligates.
/ 0ld loans cleared to secure new loans to be taken advantage.
/ $lean loans not recovered are regularized by taking some sort of security to
have some hold on borrowers.
/ Friendship and e,change of courtesies with dites of the place like #$, S),
elected representatives credit moral impact on borrowers.
B.0: Corr#cti$# 2#asur#.
/ 'egal review of documents * situation.
/ :orkout strategy * action.
/ 'oss evaluation versus security cover.
/ Stay or leave decision * reclassification.
B.0B Diff#r#nt T'1#s of +#gal Actions.
:hen the banks fail to recover the loans through pursuance, they file suit against the
defaulting borrowers in competent courts of law through banks approved lawyers to
ensure recovery through legal course of action.
/ Filling certificate cases under public demand recovery act. 2A25.
/ 1ecovery of loans through sale of mortgaged property or taking over
management of the defaulting concern.
/ Filing criminal cases for breach of trust under 6C8;63C B)$.
/ Filing money suit cases under Artha 1in Adalat Act 2AAC.
/ Filing Bankruptcy cases under Bankruptcy Act 2AA9.
CHAPTER C
PER*OR2ANCE AN+6&I& O* I*IC BANE
C.01 PO&ITION O* THE I*IC BANE AT A 4+ANCE *OR THE +A&T 7 6EAR&.
?in 2illion Taka@
Particulars 00/ 000 008F 007 00: 00B
C2 Authorized $apital 7CC.CC 7CC.CC 7CC.CC 7CC 7CC 28CC
C3 )aid+up $apital 6C8.5A 6C8.5A 6C8.5A 6C8.5A 89C.93 2562.65
C5 1eserves and
Surplus
893.9A 959.2A BCA.2C 25CA.27 2A8C.5C 2268.7C
C6 Share =olders
e"uity
2C9A.2B 2265.7B 2327.6A 2927.76 3852.C3 537B.36
C7 #eposit 2A252.B7 2A9AB.A9 3C996.69 3B83C.A2 3AACC.C7 58CA3.29
C8 $ounter Finance
from $entral Bank
38A.2A 253.65 A7.B9 52.3A 27.36 5.75
C9 $redit 3C7A8.7B 3C67C.AC 323BC.BB 376AC.88 3B582.6A 55C2B.5A
CB >uarantee Business
0utstanding
3CAB.76 33C8.65 2388.26 3B22.79 3B95.33 3772.7A
CA !mport Business
=andled
2A6C9.3C 37623.3C 369B7.3C 5898C.83 66575.66 7C558.A3
2C -,port Business
=andled
3292B.AC 362AC.3C 3A756.AC 6ACCB.83 76B87.6A 88778.75
22 Foreign 1emittance
=andled
52A3.AC 5589.2C 65C3.CC 87B3.B7 8999.63 23398.93
23 Total !ncome 3258.85 3765.B5 38B9.C8 58B9.B5 72A8.7C 529A.8C
25 Total -,penditure 2AB8.A3 2A32.98 2AB8.B2 3B37.C6 563C.3C 2779.3A
26 Fet )rofit Before
Ta,
26A.92 229.CB 25C.97 8C9.9A 2998.5C 2833.52
27 Fet )rofit After Ta, 9A.5C 86.5A 92.A2 556.3B 232B.AC 9C3.52
28 #ividend and
Bonus Share
5C.6B + 66.9C + 89C.93 +
29 Total Assets 3BBB7.AC 392C2.5C 3B797.B5 58CBC.6B 5AA26.27 67937.6A
2B Fi,ed Assets 573.A8 5A7.6B 29B.B2 529.66 5B5.CB 722.5A
2A Fumber of
Shareholders
8358 8283 832C 7936 + +
3C Fumber of
Branches ?domestic(
78 83 83 87 8A 96
32 Fumber of
Branches ?overseas(
C3 + + + + +
33 Fumber of A C5 C6 C6 C6 + +
affiliates
35 Branches of
Affiliates
35 37 58 68 + +
36 Fumber of
-mployees
2977 2B8B 2BA7 3C26 2AA9 322C
)rovisional Figures
?The Above information is furnished up to 3CCB because after that time, there have no
annual >eneral meeting of the !F!$ Bank held.(
Source. !F!$ Bank Academic $alender+3CCA.
&ourc#. Annual 1eport 3CC9 and Academic $alendar 3CCA of !F!$ Bank 'td.
Anal'sis. The above diagram shows that for economic stability and favorable govt. policy,
total income of the bank is high in 3CC9 but low in 3CCB because the govt. spent its time
for election rather than economic activities in that year.
&ourc#. Annual 1eport 3CC9 and Academic $alendar 3CCA of !F!$ Bank 'td.
Anal'sis. The diagram shows that total assets have decreased in 3CC6, 3CC7 for economic
instability of the country and increased again in 3CC9 * 3CCB because of political stability
and e,istence of indifferent caretaker govt.

C.08 EGECUTI=E &U22AR6
'oans * Advances is the nerve center of a Bank. $ommercial banks lend money to
different categories of borrowers for various purposes with a view to generate revenues
from where, operational and other cost of the bank are met. Accordingly, while processing
and appraising a loan proposal, bank collect, analyze information relating to borrowers,
assess the purposes of loan and determine the viability of the loan proposal. !f proposal is
sound and safe for lending, loan is sanctioned and disbursed.
This report on (Practical Ori#ntation of t%# I*IC Bank +td., contains my practical
observation and e,perience of different desks in the G!F!$ Bank 'td., Terri Bazar Branch.
! have e,perienced the e,ercise of >eneral Banking, $redit 0peration and Foreign
-,change during my internship program although the duration of the program was not
good enough. =ence, ! have interested to make report on (E$aluation of Cr#dit
)anag#)#nt of T%# I*IC Bank +td., The entire operations of the bank have been done
according to the law and regulation. Some modifications were found for the enhancement
of customer satisfactions and service efficiency. ! must admit that the bank is very sincere
in following all the necessary steps in documentation and traces of all the records and
transactions of the operations. All the performance of the branch has been evaluated since
its establishment.
! have arranged my report in 22 chapters. !n first chapter ! have discussed about the
background, rationale, obectives, methodology, limitations of my study. !n second chapter
! have discussed about the background of the banking sector in Bangladesh. !n third
chapter of the report describes about the organization of the !F!$ Bank. The brief history
of !F!$ Bank 'imited and its $apital, reserve * surplus, $omposition of ownership,
Board of directors, Branch network, Specialize financing, 0bectives and Functions etc.
!n fourth chapter of the report ! have discussed about the principle of sound lending policy.
!n Fifth chapter of the report ! have discussed about the role of $!B ?$redit !nvestigation
Bureau( in $redit &anagement. !n Si,th chapter of the report ! have discussed about the
!mportance of Bank $redit +&acro * &icro Analysis. !n Seventh chapter of the report !
have discussed about the &eaning, obective, importance and formulation of credit policy.
!n -ighth chapter of the report ! have discussed about the 'oans * Advances that is the
Target customers of the !F!$ Bank, Types of loans, >eneral procedure for loan sanctioned
and disbursement, #ocumentations, $reation of charges for securing loan, 'oan
classification procedure. !n Finth chapter of the report ! have discussed about the
)rocedure of 1ecovery of loans. !n Tenth chapter of the report ! have presented the
"uantitative data about the !F!$ Bank at a glance, $omparison of performance, Summary
of the branch, )osition of $lassified loans, clearing house report, )resent position of the
credit department of the branch etc. ! have also showed graphical presentation in this
chapter.
!n -leventh chapter of the report ! have discussed about the observations, conclusion and
recommendations for the bank from myself. And the report ends with a bibliography.
CHAPTER 10
CONC+U&ION AND RECO22ENDATION&
10.01 Conclusion
#uring the three months internship program at Terri Bazar Branch, almost all the desks
have been observed more or less. This internship program, in first, has been arranged for
gaining knowledge of practical banking and to compare this practical knowledge with
theoretical knowledge. $omparing practical knowledge with theoretical involves
identification of weakness in the branch activities and making recommendations for
solving the weakness identified. Though all departments and sections are covered in the
internship program, it is not possible to go to the depth of each activities of branch because
of time limitation. So, the obectives of this internship program have not been fulfilled
with complete satisfaction. =owever, highest effort has been given to achieve the
obectives the internship program.
#uring the internship, it is found that the branch provides all the conventional banking
services as well as some specialized financing activities to the economy. Foreign e,change
services department the largest department of the branch in terms of manpower and profit
earned. !n this year, it earns more than 8C@ of branch%s total profit. This department
provides all the services related to international and disburse credit if the proposal is
sound. As specialized financing, it provides term finance to medium and small+scale
industries. The branch also provides house+building loan. Thus by providing this various
services, !F!$ Bank, Terri Bazar Branch, is playing an important role in the banking
system and in the payment system of Bangladesh.
10.0/ R#co))#ndations
Although this branch is making huge amount of profit and generating large volume of
deposit, a number of problems have been detected while working this branch. These
problems along with the recommendations for solving them are stated here.
a( Branch should increase its "uality of customer services.
b( Speed up processing of loan application.
c( ';$ should be opened promptly.
d( Bank should be innovative and diversified in its services.
e( Bank should immediately enter into the credit card market.
f( Bank should introduce modern technology.
g( !nformation system should be developed.
h( #evelopment of =uman 1esources.
i( $hain of doing ob in the branch should be made clear.
( &arketing for selling the services should be encouraged.
k( #etail &anual should be prepared for accurate credit operation.
l( Some discretionary power should be given to the branch management.
m( 1educe classified loan on an emergency basis.
BIB+IO4RAPH6
2( $ommercial Bank &anagement
By+ )eter 1ose, Third -dition, !1:!F
3( !F!$ Bank credit &anual+3CC9
5( !F!$ Bank G)olicy >uide lines on credit 1isk &gt.+3CCBH
6( Annual 1eport+3CC9, !F!$ Bank 'td.
7( Statement Affairs+3CC6, !F!$ Bank 'td.
8( !F!$ Bank )rospectus.
9( A Te,t Book on bankerMs advances.
By+ '.1. $howdhury
B( !F!$ Bank Academy calendar+3CCA
A( )ractical Banking Advances
By+ =.'. Bedi * O.P. =ardikar
FFFFFFFFFFF
Dat# of &u!)ission. Octo!#r 18H01
+#tt#r of &us!)ission
Octo!#r 18H01.
2r. A'u! Isia).
I*IC Bank +i)it#d.
T#rri BaIar Branc%H
C%ittagong.
&u!"#ct. &u!)ission of Tour R#1ort.
D#ar &ir
! have the pleasure to submit my tour report on the (E$aluation of Cr#dit 2anag#)#nt
in I*IC Bank +td. ?Banglad#s%@, in a complete form. This report is an integrated part of
my BBA program. ! have strived hard for making it as subective as possible. !t was
indeed great pleasure for me to e,perience the real life working environment which ! am
sure very much would enrich my academic background as well as the professional field.
! shall be highly encouraged if you are kind to receive this report. A call for clarification
on any of the points will be my pleasure.
Thanking you
Sincerely yours
&d.Al+Amin
BBA,Session.3CC8+3CC9
!# F0.C95C2C5A
D#1art)#nt of AI&
Uni$#rsit' of C%ittagong
.

PRE*ACE
0nly the theoretical knowledge can not serve all the purposes. :e the students of the
department of A!S, Faculty of business studies, university of $hittagong, have had only
the theoretical knowledge up to the time of BBA e,amination. But after the e,amination,
the department has arranged a facility for us to have practical e,perience which is called
the industerial tour. !t is much better if the students get theoretical and practical lesson
simultaneously. But it is impossible in the conte,t of our country is conventional education
system. Thanks to the department that it at least facilities us with a little practical
e,perience. This e,perience will help us to take proper decisions in any comple, situation
of practical and real life. This report contains the overall information and analysis of
(Cr#dit 2anag#)#nt of t%# I*IC Bank +td., ! think this report will serve its purpose.
Any kind of criticism for further development of this report will be considered as a sign of
recognition to me.
&d.Al+Amin
BBA,Session.3CC8+3CC9
!# F0.C95C2C5A
D#1art)#nt of AI&
Uni$#rsit' of C%ittagong