Jamuna Bank Loan

1.1.
INTRODUCTION
It has become essential for every person to have some idea on the bank and banking procedure.
As our educational system predominantly text based, inclusion of practical orientation program,
as an academic component is an exception to the norm. Recognizing the importance of practical
experience, three months practical exposure is one of the most important parts of MBA program.
This is because theoretical knowledge gets its perfection with practical application. By an
internship program in bank, students can get practical knowledge, which helps to know the real
life situations, helping them to launch a career with some practical experience.
1.2. SIGNIFICANCE
This internship report contains all the information that I gathered in the three months internee in
Jamuna Bank Limited. In the period of internee I have followed all instructions of the officers of
Jamuna Bank Limited, Ashulia Branch. My topic is Real Estate Financing of Jamuna Bank
Limited. All these information, which are included in this report, will help the management to
identify various scopes and limitations of the bank. It specially focuses on credit department to
take decisions regarding the improvement of these departments. This is the basic rationale behind
the study. Besides, it was a great opportunity for me to get familiar with the system. So this study
is very significant for both the bank and me.
1.3. OBJECTIVE OF THE REPORT

The study seeks to achieve the following objectives:
General Objective:
The main objective of the study is to fulfill the requirement of BBA program as well as to gain
practical exposures about credit department especially on Real Estate Financing of JBL.
Specific Objective:
Real Estate Financing of Jamuna Bank Limited
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To present an overview of Jamuna Bank Limited.
To discuss the activities of Loan & Advance system of Jamuna Bank Limited.
To find out the overall pictures of Real Estate Financing of JBL.
To identify the problems of Jamuna Bank Limited.
To suggest remedial measure for the development of Jamuna Bank Limited.

1.4 SCOPE OF THE REPORT
The scope of the study is quiet wide as this report has covered the Real Estate Financing of
Jamuna Bank Limited. While preparing this report, I had a great opportunity to have an in depth
knowledge of all the banking activities practiced by the Jamuna Bank Limited. The internship
program is helpful to bridge the gap between the theoretical knowledge and real life experience
as the part of the (BBA) program. During my three months internship period in Jamuna Bank
Limited, Ashulia Branch, I have tried to observe and understand the all-banking activities
especially General banking activities and other day-to-day functions in this branch. I am also
tried to understand for different topic from the bank personnel. Since my work is partially
observation and analysis based, I have used practical experience. It makes a bridge between the
gap of classroom learning and practical learning.
1.5 LIMITATION OF THE REPORT
The first obstruct is time itself.
It was very difficult to collect data, which is very essential
It was very difficult to collect the information from various personnel for their job
constraint.
Every organization has their own secrecy that is not revealed to others.
Sufficient books, Publications, Fats and Figures are not available.
Banking is a too vast sector with various changes in its functions over the day to cope up
with.

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Lack of customer cooperation.
2.1. BACKGROUND
Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994
with its Head Office at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000. The Bank started its
operation from 3rd June 2001.
Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital of
Tk. 4,000.00 million and Paid-up Capital of Tk.1,313.26 million. The total capital/equity of the
bank stands at Tk. 2,444.33 million as on December 31, 2008. Currently the Bank has 61 (Sixty
One ) branches-15 in Dhaka City, 12 in Chittagotang, 5 in Gazipur, 8 in Sylhet, 2 in Bogra, 2 in
Naogaon, 2 in Munshigang, 3 in Shirajganj, 2 in Rajshahi, 2 in Narayanganj, 2 in Kushtia, 2 in
Dinajpur, 2 in Noakhali and 2 in Comilla.
The Bank undertakes all types of Banking transactions to support the development of trade and
commerce of the country. JBL's services are also available for the entrepreneurs to set up new
ventures and BMRE of industrial units. Jamuna Bank Ltd., the only Bengali named new
generation private commercial bank was established by a group of winning local entrepreneurs
conceiving an idea of creating a model banking institution with different outlook to offer the
valued customers, a comprehensive range of financial services and innovative products for
sustainable mutual growth and prosperity. The sponsors are reputed personalities in the filed of
trade, commerce and industries.
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. The scenario of banking business is
changing day by day, so the bank's responsibility is to device strategy and new products to cope
with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress

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within only Eight years. The bank has already ranked as one of top quality service providers & is
known for its reputation.
At present the Bank has real-time centralized Online banking branches (Urban & Rural)
throughout the Country having smart IT-Backbone. Besides these traditional delivery points, the
bank has ATM of its own, sharing with other partner banks & Consortium throughout the
Country.
2.2. VISION
To become a leading banking institution and to play a pivotal role in the development of the
country.
2.3. MISSION
The Bank is committed to 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. OBJECTIVES OF JBL
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.
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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.
2.5 STRATEGIES of JBL
To manage and operate the Bank in the most efficient manner to enhance financial
performance and to 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 requirements.
To review and update policies, procedures and practices to enhance the ability to
extend better service to customers.
To train and develop all employees and provide them adequate resources so that
customers' needs can be reasonably addressed.
To promote organizational effectiveness by openly communicating company plans,

policies, practices and procedures to employees in a timely fashion
To cultivate a working environment that fosters positive motivation for improved

performance
To diversify portfolio both in the retail and wholesale market
To increase direct contact with customers in order to cultivate a closer relationship

between the bank and its customers.
2.6 CORE VALUES
For the customers: Providing with caring services by being innovative in the development

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of new banking products and services.
For the shareholders: Maximizing wealth of the Bank.
For the employees: Respecting worth and dignity of individual employees devoting their
energies for the progress of the Bank.
For the community: Strengthening the corporate values and taking environment and
social risks and reward into account.
2.7. CORPORATE PROFILE

Corporate History of Jamuna Bank LimitedName of the Bank
Jamuna Bank Limited
Status
Public Limited company
Corporate Slogan
Your partner for growth
Commencement of operation
June 03, 2001
Authorized capital
The 4000.00 million.
Paid up capital
The 1,313.27 million
Industry
Banking industry of Bangladesh
Nature of Business
Banking Business with different financial

services/products.
Target customers
Individuals and corporate customers
Number of Branches
61
Number of employees
3200
2.8 Board of Directors
Figure: 1 Board of Directors

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2.9 MANAGEMENT HIERARCHY

Chairman
Board of Directors
Managing Director
Deputy Managing Director
Senior Executive Vice- President
Executive Vice President
Senior Vice -President
Vice -President
Senior Assistant Vice -President
Assistant Vice -President
Junior Vice -President
Senior Executive Officer
Executive Officer
Probationary Officer
Probationary Officer
Real Estate Financing of Jamuna BankOfficer
Limited
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Figure: 2 Management Hierarchies
2.10 GENERAL ACTIVITIES OF JBL

Jamuna Bank Limited has its prosperous past, glorious present, prospective future and under
processing projects and activities. JBL provides customer service to their customers. At the
period of internee I found the following of JBL at Ashulia branch.
Dispatch
Account Opening
Cheque clearing
Local Remittance
Cash department
Accounts.
Foreign exchange
Credit
Dispatch:
The main function of dispatch division is dispatching all types of documents such as OBC, IBC,
LBC, and different types of letter, different advice Also dispatch division receives letter and
documents, which are may be come from the different branches of JBL, other banks, negotiation
and opening bank(incase of export and import) in the name of Jamuna Bank Limited.
The staff involve with dispatch division maintain two types of mail, which is
Inward mail & Outward mail.
Inward mail:

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When staff receives any letter or documents from out side of the branch then he done following
function which is arranged at sequentially:
First put receive seal on the letter or document
Put a serial number
Register in the inward book with receiving date.
Outward mail:
When it is necessary to dispatch any types of letter or document outside of the Dilkusha branch
the dispatch staffs done following job, which are, arrange sequentially:
Put serial numbers
Register on outward mail register book with date.
Outward dispatch is done in by courier service: Courier services are used when documents or
letters dispatch to other branches of Jamuna Bank Ltd. It has been seen that courier services
payment has made by monthly basis.
Account Opening:
Before discussion about account opening, first we have to know different types of target
customers of Jamuna Bank Ltd.
Individual
Partner
Join stock
Public Sector
Jamuna Bank Ltd. offer different types of account for their target groups. These are as follows
Current account
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Saving account
Monthly savings Scheme
Fixed Term Deposit account (FDR)
Short term deposit (STD)
Following are broadly explaining all this type of account:
Current Account (CD):

Current account is that types account where depositor can withdraw his deposited money at any
time there is no restriction. Current account can be divided into four types, such as:Individual current account
Proprietary current account
Current partnership account
Current account for limited companies.
Saving account (SB):

Saving account is that account whose interest rate is higher than current account and saving
account can be open by individual, joint name or club, association etc.
Monthly Savings Scheme (MSS)

Savings is the best friend in bad days. Small savings can build up a prosperous future. Savings
can meet up any emergences. JBL has introduced Monthly Savings Scheme (MSS) that allows
saving on a monthly basis and getting a handsome return upon maturity. If anyone wants to build
up a significant savings to carry out youre cherished Dream, JBL MSS is the right solution.
Fixed Term Deposit account (FDR)

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Fixed term deposit (FDR) application form has been used both for application form and as a
credit voucher for the bank. In case of FDR specimen signature card used and client give three
signatures on the specimen card. In the case of FDR it is clearly mention that when this amount
will be withdrew account holder receive principle amount plus interest.
FDR account holder gets a FDR slip that is provided by the JBL officer. FDR slip contains name
of account holder, deposited amount, And interest, and time of maturity. If depositor withdrew
his money before maturity date he does not get any interest. If account holder lost FDR slip then
indemnity bond is required to issue a duplicate FDR slip. FDR account can be open by
individually or joint name, In the case of FDR holder death, his nominee will get the amount.
Short Term Deposit (STD)

Short term deposit account interest is calculated at daises and its interest rate is 7.00 %.
Lakhpati Deposit Scheme
To become a lakhpati is a dream to most of the people of Bangladesh especially to the lower and
lower middle class income group. They experience their expectations and wants are enormous in
nature in our small span of life. To meet our deposit and wants we need right plan. Keeping the
above in mind JBL has introduced "Lakhopati Scheme" which has flexibility report of maturity
and monthly installment as per affordable capacity.
Monthly Benefit Scheme (MBS)
Jamuna Bank Limited has introduced Monthly Benefit Scheme (MBS) for the prudent persons
having ready cash and desiring to have fixed income on monthly basis out of it without taking
risk of loss and without enchasing the principal amount. This scheme offers highest return with
zero risk. Everyone can plan your monthly expenditure with the certain monthly income under
the scheme.
Education Savings Scheme

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Education is a basic need of every citizen. Every parents want to impart proper education to their
children. Education is the pre-requisite for socio-economic development of the country. As yet,
there is no arrangement of free education to the citizens from the government level. As such,
there should
be
pre-arrangement of fund to ensure higher educations the children. Otherwise
higher education may be hindered due to change of economic condition, income of the parents at
the future time when higher education shall be required. Today's higher education is becoming
expired day by day. Parents can get relief and can have peace of mind if they can arrange the
necessary fund for higher education of their children. As such, JBL, has introduced 'Education
Savings Scheme' which offers you an opportunity to build up your cherished fund' by monthly
deposit of small amount it at your affordable capacity or initial lump sum deposit to yield
handsome amount on a future date to meet the educational expenses. Under this Scheme you
have the different attractive options to avail the future benefit i.e. withdrawal of the total amount
accumulated in lump sum or withdrawing monthly benefit to meet educational expense keeping
die principal amount intact or to withdraw both principal and accumulated profit monthly for a
certain period.
Marriage Deposit Scheme
Marriage of children, especially daughter is a matter of great concern to the parents. Marriage of
children involves expense of considerable amount. Prudent parents make effort for gradual
building of fund as per their capacity to meet the matrimonial expense
of
their children specially
daughters. Parents get relief and can have peace of mind if they can arrange the necessary fund
for marriage of their children, no matter whether they survive or not till the marriage occasion.
It can be a great help to the parents if there is any scope of deposit of a modest mount as per their
financial capacity, which groves very fast at high rate of interest yielding a sizeable amount on
maturity.
With this end in view JBL has introduced Marriage Deposit Scheme, which offers you an
opportunity to build - up your cherished - fund by monthly deposit of serial, amount at your
affordable capacity.
Double/Triple Growth Deposit Scheme

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For people who have cash flow at this moment and want to get it doubled/tripled quickly JBL has
introduced Double/Triple Growth Deposit Scheme that offers to make double/triple money
within 6(six) years and 9.5 (nine and a half) years respectively resulting a high rate of interest.
Cash Department
Payment through cash: Clients give their cheque with their signatures are justified with
specimen signature cards. If the signature is correct, then A/C number is posted into the
computer and required balance in their account.
Payment through transfer: This transfer is made through account to account, not in cash.
Cash department is the important department of any bank. All the monetary transaction in
occurred in this department. The main work of the cash department is the opening of cash. The
beginning balance is registered while receiving & paying different amount of cash. (Cash
received and cash payment).
Remittance
Remittance is one of the main components of banking. The main activities of remittance section
are:
Telegraphic Transfer (TT)
Demand Draft (DD)
Payment of Pay order
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Pay slip
Local Remittance
The offers various kinds of remittance allover the country through it branch network. Telegraphic
transfer, travelers cheque and draft and cheque can do remittance. There are two types of
remittance as are:
Inward remittance: When one bank sends these T.T., MT, T.C, or cheque to another
bank within the country it will be called inward remittance.
Outward remittance: When one bank got this T.T, M.T, T.C and cheque from any bank
outside the country then it will be called outward remittance.
Foreign Remittance
Jamuna Bank Ltd. has a network of 19 branches in Bangladesh and 4 more branches are going to
be added to network soon.
Remittance services are available at all branches and foreign remittances may be sent to any
branch by the remitters favoring their beneficiaries.
Remittances are credited to the account of beneficiaries instantly through Electronic Fund
Transfer (EFT) mechanism or within shortest possible time.
Jamuna Bank Ltd. has correspondent banking relationship with all major banks located in almost
all the countries/cities. Expatriate Bangladeshis may send their hard earned foreign currencies
through those banks or may contact any renowned banks nearby ( where they reside/work) to
send their money to their dear ones in Bangladesh.
To facilitate sending money in Bangladeshi Taka directly, Jamuna Bank Ltd. has Taka Drawing
Arrangement with many banks/exchange companies in different countries. The expatriate
Bangladeshis may send their money in BDT through the branches/subsidiaries of Jamuna Bank
Ltd.
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Loans and Advances

Though there was an unfavorable business environment due to political turmoil throughout the
year JBL was in constant efforts to explore different areas of credit operation and could raise the
credit portfolios to Tk.12796.63 million in 2006 with an increase of Tk.1784.80 million
(16.21%) over that of the preceding year. The total credit as on 31.12.05 was Tk.11011.83
million. In order to ensure compliance with regulatory requirements for avoiding risk of
exposure to single borrower, concentration on large loans, to bring in excellence in credit
operation in relation to risk management, yield, exposure, tenure, collaterals, security valuation
etc.
The main focus of Jamuna Bank Ltd. Credit Line/Program is financing business, trade and
industrial activities through an effective delivery system.
Jamuna Bank Ltd. offers credit to almost all sectors of commercial activities having productive
purpose.
Loan is provided to the rural people for agricultural production and other off-farm activities.
Loan pricing system is customer friendly.
Prime customers enjoy prime rate in lending and other services.
Quick appreciation, appraisal, decision and disbursement are ensured.
Credit facilities are extended as per guidelines of Bangladesh Bank (Central Bank of
Bangladesh) and operational procedures of the Bank.
Interest is calculated on daily product basis but charged and accounted for quarterly on accrual
basis. Interest on classified loans is kept in interest suspense account as per Bangladesh Bank
guidelines and such interest is not accounted for as income until realized from borrowers.
Interests are not charged on bad / loss loans as per instructions of Bangladesh Bank. Advances
are stated at gross value.

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Loan Products and Services:

a. General Loan Facility
Letter of Credit, Bank Guarantee, Cash Credit, Loan(general) Hire Purchase, Lease
Finance, Work-order Finance, Export Finance, House Building Loan, LDBP and FDEBP.
b. Retail Credit Products
Any purpose lifestyle loan
Loan against salary
CNG conversion loan
Real Estate Finance
Car loan
Travel loan
Consumer loan
Study loan
Doctors loan
Marriage loan
c. Electronic Products:
Real time On-Line any branch banking
24 hours ATM
Credit & Debit card
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Telephone banking
SMS banking
Internet banking
Cheque Clearing
The scheduled banks clear the cheques drawn upon one another through the clearing house. This
is an arrangement by the central bank where every day the representative of the member banks
gather to clear the cheques. The place where they meet and settle their dues is called the clearing
house. The clearing house sits for two times a working day. The members submit the claimable
cheques in the representative desks of the banks and vice versa. Consequently the debit and
credit entries are given. At the end debit summation and the credit summation are calculated.
Then the banks clear the balances through the cheque of the Bangladesh bank. The dishonored
cheques are sorted and returned with the memo.
The main function of this section is to collect instrument on behalf of the customer through
Bangladesh bank through clearing house.
Outward bill Collection (OBC)
&
Inward bill for collection (IBC)
Upon the receipts of the instruments this section examines the following things:
Whether the paying bank is within the Dhaka city
Whether the paying bank is out side of Dhaka city
And whether the paying bank is their own branch.
Outward bills for collection (OBC): Collection of bills, which are beyond the clearing range
and collected through OBC mechanism.
Inward bills for collection (IBC): Collection of bills which Jamuna bank does as an agent is
called collection through IBC mechanism.
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Accounts department
Account division is the most important for all banks. In accounts division maintain all types of
accounting procedures of Dilkusha branch and support the branch to take different types of
initiatives by providing various data and information.
Prepare daily statement of affairs
Maintain transfer book
Prepare daily, weekly, monthly and quarterly, half yearly and annual statement
Reconciliation of CIBTA
All administrative works.
Foreign Exchange
Is the most important method of import -financing International trade take place between sellers
and buyers located in different countries. The parties to a trade transaction are not always known
to each other. Even if they are known to each other the seller may not have full confidence in the
carried worthiness of the buyer or the buyer may not like to pay before he actually receives the
goods. In letter of credit the bankers credit worthiness is substituted for the credit worthiness of
the importer. Under a bank- cards letter of credit, the issuing bank gives a written undertaking on
behalf of the buyer that the bank will honor the obligation of payment or expectance as the case
may be on presentation of stipulated documents. As the request of the importers bank issue the
letter of credit at a merging by the govt. instruction. Bail: does not generally issue the letter of
credit less then 50% margin. JBL follow the margin prescribed by the government strictly.
The Exporter needs finances at various stages, some at pre-shipment stage and the other at the
post shipment stage.
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3.1 Credit Management of JBL

This section lends the fund what the bank mobilizes through its various deposit accounts. This is
the second function of banks two generic function -deposit mobilization and credit creation. The
major part of banks income is derived from credit and since the banks credit is customers fund,
bank takes extreme caution in lending.
3.2 What is Loan?

When an advance is made in a lump sum repayable either in fixed monthly installments or in
lump sum and no subsequent debit is ordinarily allowed except by way of interest and incidental
charges, etc. it is called a Loan. Loan is allowed for a single purpose where the entire amount
may be required at a time or in a number of installments within a period of short span. After
disbursement of the entire loan amount, there will be repayment by the borrower in installment.
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A loan once repaid in full or in part cannot be drawn by the borrower. Entire amount of loan is
debited to the loan account in the name of the customer and is paid to him/her through his/her
SB/CD/Loan account. Some times loan amounts are disbursed in cash.
3.3 Credit Management

To prevent excessive flow of credit and proper use of it, banks required to follow an appropriate
credit appraisal procedure to impose financial discipline on borrowers. The procedure that
organize, control and motivate the borrowers will called credit management.
3.4 Sanctioning Loans and Advance

To have a clear idea about the credit management of JBL the following points are essential.
Credit policy of the Bank
Credit Sanctioning Authority of JBL and
Processing and Screening of Credit Proposal
3.5 Credit Policy of the Bank

JBL Credit Policy contains of total macro-economic development of the country, as a whole by
the way of providing financial support to the trade, commerce and industry. Throughout its credit
operation JBL goes to every possible corners of the society. They are financing large and
medium scale business house and industry. At the same time they also take care of entrepreneur
through its operation of lease finance and some micro credit, small loan scheme etc. The bank
has come up with a scheme where women will be able to get financial support for their self
employment and development.
3.6 Steps of Credit Management

Step-1: Corresponding
Application from the party.

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Application & declaration for credit facilities from.
Net worth calculation.
Account statement
CIB report
CRG (Credit Risk Guarantee).
Limit proposal and approval from.
Sanction latter.
Step-2: Disbursement
Acceptance of sanction latter.
Charge documents
Security documentation (Original deed, legal option etc.)
Step-3 Monitoring
Record the transactions against credit facilities.
Make performance report on transactions.
Evaluate and monitor the securities period by period.
3.7 Procedure of Disbursement of Loans & Advances

To have crystal clear idea about the Credit Management of JBL critical analysis of the
following are essential
Credit Policy of the Bank.
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Credit Sanctioning Authority

Processing and screening of Credit Proposal.
3.8 Credit Sanctioning Authority of JBL

Delegated powers are expected to be exercised by the authorized executives sensibly keeping the
banks interest in mind. In exercising the power the delegated authorized executives shall also
have credit restriction, tools and regulations, as governed by Banking Company Act, Bangladesh
Bank, and other usual credit norms. However, the following guidelines are laid down before the
executives of JBL. For exercising the delegated power
The borrower must be a man of integrity and must enjoy good reputation in the
market.
The borrower must have the capacity and capability for utilizing credit: Properly
and Profitability.
The enterprise of the borrower must be viable and profitable i.e. proposal of the
borrower must be evaluated properly and carefully so as to ascertain its
profitability.
The enterprise must generate sufficient fund for debt and servicing.
A customer to whom credit is to be allowed should be far as possible within the
command area.
No sanctioning officer can sanction any credit to any of his near relatives and to
any company where his relatives have financial interest.
3.9 Tools for Appraisal Credit

The 10 Cs of Good and Bad Loan
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In addition to the formal credit appraisal, the credit an official of JBL tries to judge the possible
client based on some criteria. These criteria are called the C's of good and bad loan. These are
described below:
1. Character: Make sure that the individual or company they are lending has outstanding
integrity.
2. Capacity: Make sure that the individual or company they are lending has the capability of
repaying the loan.
3. Condition: Understanding the business and economic conditions that whether it will change
after the loan is made.
4. Capital: Make sure that die individual or the company they are lending has in appropriate
level of investment in the company.
5. Collateral: Make sure that there is a second way out of a credit but do not allow that to
drive the credit decision.
6. Complacency: Official do not rely on past. They remain alert every time whether any
mistake is taking place or not.
7. Carelessness: They believe that documentation, follow up and consistent monitoring is

essential to high quality loan portfolio.
8. Communication: They share credit objectives and credit decision making both vertically
and laterally within the bank.
9. Contingencies: Make sure that they understand the risk; particularly the downside
possibilities and that they structure and price the loan consistently with the understanding.

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10. Competition: They do not get clean away by what others are doing.
3.10 Credit Monitoring and Supervision Cell

JBL is a unique characteristic in its loan management to make sure that there will be no bad loan
in its-loan portfolio; JBL established a loan monitoring and supervision cell headed by a First
Assistant Vice President. He along with other official frequently visits customer premises or
business whether loan amount, which is taken, is used properly or not. Sometimes customer need
more fund to run the business profitably, then the monitoring authority takes necessary steps to
meet customers need.
3.11 Processing and Screening of Credit Proposal

There are some common regulatory directives governed by Banking Companies Act, Bangladesh
Bank and the Law of the State which or to be followed strictly at the time of screening a credit
proposal. In addition, credit proposals are appraised critically by JBL Credit officers from
various angles to judge the feasibility or viability of the proposal.
The customers at the branches of the bank place credit proposals. When a customer comes with a
credit proposal, the Credit Department of the Branch makes an open discussion with the
customer on different issues of the proposal to judge the worthiness of the proposal and the
customer. If the proposal seems to be worth while in all respects then the proposal is placed
before the credit committee of the bank. After threadbare discussion, if the committee agrees in
principle the proposal is sanctioned as par the delegated business power of the branch.
However, if the magnitude of the proposal is beyond the delegated business power of the branch
they forward it to the Head Office with recommendation for sanction/approval.
On receiving the proposal, the Credit Division of Head Office place the proposal in the Head
Office Credit Committee. The Committee further analyze proposal critically and if agree in
principle they sanction the same as par delegated business power. Again if the merit and
magnitude of the proposal is beyond the delegated business power of the Head Office Credit
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Committee/Managing Director they forward the proposal to the Board of the Bank with
recommendation for approval.
If the proposal is found unviable at the Branch level they decline the same from their desk. In the
same way, proposals are also declined from the Head Office Credit Committee and from Board if
it is not feasible one.
It is pertinent to mention that there is a Credit Committee at the Branch headed by the branch
incumbent and at the Head Office headed by the Managing Director. Branch Manager and the
Managing Director of the Bank are authorized to exercise business power up to the extent as
delegated to them. Beyond the delegation of the Managing Director, the approving authority is
the Board.
However, the Board Directors again authorized a Committee of the Board consisting a number of
Directors namely "The Executive Committee" to exercise business power up to an extent so
delegated to them.

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Flow Chart of Credit Proposal
3.12 Credit Monitoring/Supervision

Bangladesh Bank Perspective:
The Bangladesh Bank formulates and implements monetary and Bank supervision policies and
advises the Government on economic policy within the framework of the Bangladesh Bank order
1972. The Banking companies/company Act, 1991 and the Financial Institution Act, 1993 that
give the Bangladesh Bank general powers to direct banks and financial institutions to conduct
monetary policy and to specify and implements prudential rules and requirements.
Bangladesh Bank is empowered to conduct inspection of the scheduled Bank under section 44 of
Banking companies Act, 1991 Section 44 of the Act says the Bangladesh Bank at any time may
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either, or its own motion or on being directed to do so by the Government shall, cause an
inspection to be made by one or more of its of any banking company ad its books of account.
An inspection team normally consisting of a Deputy Directors as a term leader and two Assistant
Directors inspects each bank branch. In case of large branches having advances of Tk. 5.00 Crore
and above a Joint Director leads the inspection team instead of a Deputy Director. The leader of
the team fixes up time and place where the team wills meet on the date of Inspection. The leader
of the team is supplied with a. directive for inspection, which is addressed to the Manager of the
branch co'\1cerned. The team reaches the concerned bank branch before it opens for transactions
and cash is brought out of the vault. The first duty of the team is to take into their custody.
casebook and general ledger before starting physical verification of cash balance. It includes the
verification of foreign currencies, prize bonds, stamp and stamp papers and stock of checkbooks,
D. D. forms and shares & securities. Usually the books off account of the book are examined as
on a particular data but inspections, especially to find out cases of violation of Bank Company
Act, 1991, Credit restricttions and other instructions issued by Bangladesh Bank and
Government from time to time.
PERFORMANCE REPORT
Normally after loan sanction, bankers are taking care of the client performance. Renewal of the
loan is depends on the performance report. In performance report the transaction between bank
and the client are recorded. So when turnover of the loan is high then it is good client. If the
client takes his allowed loan and deposit it few times, then the client is less risky but the bank
cant get more benefit from the client because of low turnover. Bank expected higher turnover to
get more benefit. Performance report will show all of this. Performance report show the debit
and credit transactions average balance for the period, average monthly debit, average monthly
credit, accounts highest balance, accounts lowest balance, number of time loan adjusted.
According to performance report bank make a list of good and bad borrower and show the
present position of the clients and rank them according to good or bed borrower.
SECURITY
27 | P a g e
It is essential that the proposal define clearly the purpose of the facility, the sources of the
repayment, the agreed repayment schedule, the value of security (Land, Machinerys, Security
paper, etc.) and the customer relationships consideration implicit in the credit decision.
Where security is to be accepted as collateral for the facility all documentation relating to the
security shall be in the approved form.
All approval procedures and required documentation shall be completed and all securities shall
be place, prior to the disbursement of the facilities.
The bank for creation of mortgage on the property- requires the following documents:
Original Sale Deed favoring owner of the landed property.
Certified copy of Mutation Khatian.
Duplicate Carbon Receipt (OCR).
Certified copy of the Sale Deed of the previous owner of the same property.
Up-to-date Rent receipt and Municipal Tax Receipt.
Clearance from RAJUK / WORKS MINISTRY (if the property is lease hold property of
any of them) in connection of availing the loan facility from Jamuna Bank Limited,
Dhaka by mortgaging the property. Valuation Certificate.
RAJUK approved plan of the building with the approval letter.
Site Plan / Mouza Map
Photograph of the property from three different angles and the owner of the landed
property.
Board Resolution for mortgaging the property if the same belongs to any Limited
Company.
28 | P a g e
Certified copy of CS, S.A, R.S Khatians.

The borrower is request to submit the lawyer and creation of mortgage on the property intended
to mortgage against the advance.
DOCUMENTATION:
A document is a written statement of facts of proof or evidence arising out of particular
transaction, which on placement may bind the parties there to answerable and liable to the court
of law for satisfaction of the charge in question.
The execution of documents in proper form and according to the requirements of law is known
as documentation. The documentation does establish a legal relationship between the lending
bank and the borrower The terms and conditions of loans and advances, the securities charged
and the repayment schedule are recorded in writing Proper documentation is a safeguard the
future interest of the bank.
Document is necessary for the acknowledgement of debt by the borrower and charging of
securities to the bank by him. Proper and correct documentation is essential not only for the
safety of an advance but also necessary for taking legal action against the debtors in case of nonpayment of dues. Depending on the types of loans & advances different documents are required.
Such as:
I. Demand Promissory (D.P) Note.
II. Letter of partnership (in case of partnership concerns) or Resolution of the Board of
Directors (in case of Limited Companies).
III. Letter of arrangement.
IV. Letter of disbursement.

29 | P a g e
V. Letter of pledge (in case of pledge goods).

VI. Letter of hypothecation (in case of advances against shares).
VII. Trust Receipts (in case of L TR facility).
VIII. Letter of lien and transfer authority (in case of advance against PSP, BSP, etc.)
IX. Letter of lien and ownership (in case of advance against shares).
X. Letter of lien for packing credits (in case of Packing Credit).
XI. Letter .of lien (inc case of advance against FDR)
XII. Legal documents for mortgage of property (as drafted by Legal Adviser).
3.13 Loans (General)

When an advance is made in a lump sum repayable either in fixed monthly installment or in
lump sum and no subsequent debit is ordinarily allowed except by way in interest and incidental
charges etc. This is loans (general). Loan is allowed for a single purpose where the entire amount
may be required at a time or in a number of installments within a period of short spam. After
disbursement of the entire loan amount, there will be only repayment made by the borrower.
This loan is repayable within few months or few years.
Securities:
1.
Lien on fixed/term deposits.
2.
Shares/Debentures/Protiraksha Sanchay Patra.
3.
Insurance Policy
4.
Mortgage of Real estates and properties

30 | P a g e
5.
Hypothecation of stock/Stock/Machinery.
Interest Rate: 13%-16 % per annum

3.14 Lease Finance
Jamuna bank Ltd. is the first private commercial bank , in Bangladesh who introduced lease
finance facilities for funding requirement of valued customers & growth of their business.
Lease Items
Vehicles like luxury bus, Mini bus, Taxi Cabs Cars, Pick-Up Van Etc.
Factory equipment.
Medical equipments.
Machinery for agro based industry.
Construction and office equipment.
Sea or river transport and computer for IT education center.
Lease Period by Items:

Sectors
Period Up to Years
Vehicles like luxury bus, Mini bus, Taxi Cabs Cars, Pick-
Up
Factory Equipments
Medical Equipments
Construction Equipment
Office Equipment
Generators, Lift & Elevators for Commercial place

Sea or River Transport
3-5
4
Computer for IT Education Center
2-3
Machinery for Agro Based Industry
Figure : Lease items & duration

31 | P a g e
Maximum Limit:
70% of acquisition Cost,
Security/Collaterals:
The following securities are acceptable.
Ownership of leased assets before the period of loan adjustment.
Collateral securities in the form of Land & Building/Fixed Deposits/other cash
collateral /Wage Earners Development Bond having liquidation value covering 100%
amount of finance.
Deposit of A category shares, Savings Certificates, assignment of life insurance
policies, Bank Guarantee also be allowed as collateral securities.
3.15 Computing Credit Risk Grading

The following step-wise activities outline the detail process for arriving at credit risk grading.
Step I
: Identify all the Principal Risk Components
Credit risk for counterparty arises from an aggregation of the following: Financial Risk
Business/Industry Risk
Management Risk
Security Risk
Relationship Risk
Each of the above mentioned key risk areas require to be evaluated and aggregated to arrive at an
overall risk grading measure.
32 | P a g e
a) Evaluation of Financial Risk:

Risk that counter parties will fail to meet obligation due to financial distress. This
typically entails analysis of financials i.e. analysis of leverage, liquidity, profitability &
interest coverage ratios. To conclude, this capitalizes on the risk of high leverage, poor
liquidity, low profitability & insufficient cash flow.
b) Evaluation of Business/Industry Risk:
Risk that adverse industry situation or unfavorable business condition will impact
borrowers' capacity to meet obligation. The evaluation of this category of risk looks at
parameters such as business outlook, size of business, industry growth, market
competition & barriers to entry/exit. To conclude, this capitalizes on the risk of failure
due to low market share & poor industry growth.
c) Evaluation of Management CREDIT

Risk: RISK
Risk that counter parties may default as a result of poor managerial ability including
experience of the management, its succession plans and teamwork.
Financial risk
Management Risk
Security Risk
Relationship Risk
d) Evaluation of Security Risk:

Risk that the bank might be exposed due to poor quality or strength of the security in
Leverage
Size of Business
Experience
Security Coverage
Succession
Collateral Coverage
Account Conduct
case of default. This may entail strength of security & collateral, location of collateral
and support.
Liquidity
Profitability
Coverage
Age of Business
Utilization of Limit
e) Evaluation of Relationship Risk:
These risk areas cover evaluation of limits utilization, account performance,

Business Outlood
Compliance of Covenants/Condition
Industry Growth
Personal Deposits
Team
Supportrelationship.
conditions/covenants compliance
by Work
the borrower and deposit
Real Estate
Financing
of Jamuna Bank Limited
Market
Competition
33 | P a g e
Barriers to Business
Figure : Credit Risk at a glance

Step II
Allocate weight ages to principal Risk Components
According to the importance of risk profile, the following weitght ages are proposed for
corresponding principal risks.
Principal Risk Components
Weight:
Financial Risk
50%
18%
Management Risk
12%
Security Risk
10%
Relationship Risk
10%
Step III
Find out the key Parameters
34 | P a g e
Principal Risk Components:
Key Parameters:
Financial Risk
Leverage, Liquidity, Profitability & Coverage Ratio
Size of Business, Age of Business, Business

Outlook,
Industry Growth, Competition & Barriers to Business
Management Risk
Experience, Succession & Team Work.
Security Risk
Security Coverage, Collateral Coverage and Support.
Relationship Risk
Account Conduct, Utilization of limit, compliance

of Covenants/conditions & Personal Deposit.
Step III
Establish the key Parameters
Principal Risk components:
Key parameters:
Weight:
Financial Risk
50%
--Leverage
15%
-Liquidity
15%
-Profitability
15%
-Coverage
15%
Business Industry Risk
18%
-Size of Business
5%
-Age of Business
3%
-Business Outlook
3%

35 | P a g e
-Industry growth
3%
- Market Competition
2%
- Entry/Exit Barriers
2%
Management Risk
12%
-Experience
5%
-Succession
4%
-Team Work
3%
Security Risk
10%
-Security coverage
4%
-Collateral coverage
4%
-Support
2%
Relationship Risk
Step V
Parameters
10%
-Account conduct
5%
-Utilization of limit
2%
-Compliance of covenants/condition
2%
-Personal deposit
1%
Input data to arrive at the score on the key
After the risk identification & weightage assignment process (as mentioned above), the next
steps will be the input to actual parameter in the score sheet that is very essential to arrive at
the scores corresponding to the actual parameters.
This manual also provides a well-programmed MS Excel based credit risk scoring sheet to arrive
at a total score on each borrower. The excel program requires inputting data accurately in
particular cells for input and will automatically calculate the risk grade for a particular borrower
based on the total score obtained. The following steps are to be followed while using the MS
Excel program.

36 | P a g e
a) Open the MS XL file named, CRG_SCORE_SHEET

b) The entire XL sheet named, CRG is protected except the particular cells to input data.
c) Input data accurately in the cells which are BORDERED & are colored YELLOW.
d) All the cells provided for input must be filled in order to arrive at accurate risk grade,
e) We have also enclosed the MS Excel file named, CRG_Score_Sheet in CD ROM for
use.
Step VI
Arrive at the Credit Risk Grading based on total
The following is the proposed Credit Risk Grade matrix based on the total score obtained by an
obligor.
Number
Risk Grading
Short
Score
Superior
SUP
Name
2
3
Good
Acceptable
GD
ACCPT
85+
guarantees
75-84
4
5
6
7
8
Marginal/Watch list
Special Mention
Sub-standard
Doubtful
Bad & Loss
MG/W
SM
L
SS
DF
BL
65-74
55-64
45-54
35-44
<35
0 100% cash covered

Government Guarantee
International Bank
Figure : CRG total Score

37 | P a g e
3.16 Causes of Fault Loan:

In finance, default occurs when a debtor has not met his or her legal obligations according to the
debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant (condition)
of the debt contract. A default is the failure to pay back a loan. Default may occur if the debtor is
either unwilling or unable to pay their debt. This can occur with all debt obligations including
bonds, mortgages, loans, and promissory notes.
When Banks loan falls to doubtful or bad then they need to recover it as Bank needed. The
causes of fault Loan are given below:
Intentionally
Business Fault
Economic recession
Low production
Corruption
Firm diverted to unproductive source.

Invest in another sector.
Lack of Monitoring
3.17 The Recovery Department:

The Recovery Department should directly manage accounts with sustained dc1crioralion (a Risk
Rating of Sub Standard (6) or worse).
Down Grading process should be done nomadically and should not be postponed unit the annual
review process.
The CRU's primary functions are:
38 | P a g e
Determine Account Action Plan/Recovery Strategy
Pursue all options to maximize/c recovers, including

placing customers into receivership or liquidation as
appropriate.
Ensure adequate and timely loan loss provisions arc made based on actual and
expected losses.
Regular review of grade 6 or worse accounts.
Management of classified loans and special mention
Accounts and related works writing off' B/L loans with the approval of the Board
The management of problem loans must be a dynamic process, and the associated strategy
together with the adequacy of provisions muss be regularly reviewed. A process should he
established to share the lessons learned from f1w experience of credit losses in order to update
the lending guidelines.

39 | P a g e
3.18 REAL ESTATE FINANCING OF JBL
Home ownership is a basic need and a dream of every individual. Since housing industry plays a
vital role in the national economy, our bank has come forward for Real Estate financing for
Individual as well as Developers. The main objective of Real Estate Financing is to promote Real
Estate Developers and Individuals.
Scope of Real Estate Loan:
For Construction of Residential Building [CRB]

For Construction of Commercial Building [CCB]
For Flat Purchase [FP]
For Building Purchase [BP]
For Developers [DEV]
Purpose:
Construction / Extension / Renovation of Residential / Commercial Building.

Purchase of Building /Flat /Office Space /Chamber /Shops.
Eligibility:
Salaried Individuals and Professionals

Self -Employed professionals
Businessman
Wage Earners or other professional serving abroad

40 | P a g e
Maximum Age Limit: 70 [Seventy] years at the end of loan tenor.
Minimum Income : Net Income/Take home salary will be at least Tk.40,000/-[forty

thousand] per month.
Maximum Loan Size :
For Flat Purchase Tk.75.00 (seventy five) lac

For Building Purchase/Construction of Residential Building Tk.100.00 (one hundred) lac
Maximum Loan Tenure : Up-to 15 (fifteen) years including 01(one) year grace period.
Maximum Loan Ratio:
50% of total Purchase Price for Flat / Building.

60% of total Construction cost for Residential/Commercial Building.
Requirement for Flat Purchase:

41 | P a g e
Such
Ownership deed of the property (photocopy)
other
documents
as
required by the
Bia deed for 25 years
Banks
appointed
Development agreement (joint venture) with the land owner (if any)
Lawyer.
Registered Power of attorney
Recent Survey Report (math parcha duly attested)
Mutation parcha with mutation proposal sheet.
Duplicate carbon receipt with mutation order sheet.
CS. SA. RS porcha (PS. BS. RS. Porcha applicable only for Chittagong)
Requir
ement
for
Up to date Land tax Receipt (if any)

Up to date Holding tax receipt.
Approved plan/Layout plan and approval letter by Rajuk/Authoruty.
Deed of agreement/Allotment letter.
Residential
Ownership/lease deed of land original
Building:
Bia deed for 25 years

Recent Survey Report (math parcha duly attested)
Mutation parcha
CS, SA & RS Parcha
Applicant
Requisite
Documents
For self-employed
Certificate
of professional degree and certificate of membership from professional body
Up to date Land
tax Receipt
for self employed professionals
RealEstate
Financing
of Jamuna
Bank
Limited
Approved
plan/Layout
plan and
approval
letter by
42 | P a g e
Bank Statement for latest 12 months

Rajuk/Authority
Declaration
Proof of Property
Insuranceof other assets (if any)
For Businessman
Statement of Business details
Latest Profit & Loss account and balance sheet of the business for businessmen
Trade License as proof of business age/Memorandum of Association
Company Statement for latest 18 months and self Bank Statement for latest 12
For
months
Declaration of other assets (if any)
Landlord
Title deed of rented premises/property
Valid rental deed with tenants
Latest 12 months banks statements in applicants name
Utility bill in the name of applicant for rented property

43 | P a g e
NOTE
JBL may ask for Personal
Guarantee from acceptable
person if necessary.
3.18 Different Interest Rates for Real Estate Financing or House Building
Loan Between JBL with some other banks;
Jamuna Bank Limited.

Brac Bank Limited.
Standard Bank Limited.
United Commercial Bank Limited
Eastern Bank Limited
Dutch Bangla Bank Limited
13%
17.80%
16%
17%
13%
15%
PRACTICAL WORK DURING INTERNSHIP

44 | P a g e
In this three months of my internship period I worked in various departments of JBL. But among
the all departments I like the credit department most. Because the work of credit department is
very important and interesting; actually this department does the toughest work in the bank. I feel
very comfort with the members of clearing department too. All the members of this department
helped me a lot to complete my internship report.
My main activity was:
To inform the customers about loan opportunity provided by the bank.

Give the idea about interest rate with the installment amount to the customers.
Inform the customers about what are the document required for the specific loan.
Check the document as required for the safety of the loan.
Project Part
Background Study:

45 | P a g e
JBL introduces the most convenient & practical Real Estate Financing that suits your all home
financing needs. Let it be for flat purchase, construction for residential building, construction for
commercial building, building purchase for developers extension or renovation - JBL is here
with the ultimate solution for you. With so many attractive features in it - the home you wanted
to buy, or to extend the existing one or renovate the same is no longer a distant dream.
These loans are alternative of term loan and are the loans made to finance those who require real
estate financing loans for both commercial and non-commercial purposes. Being a variant of
term loan, in this cash too, banks usually have predetermined optimum exposure level, which
shall always be kept in mind in considering financing under this category. Besides borrower's
standing is thoroughly checked and only fairly cleared clients are entertained.
Real Estate Finance for commercial purposes shall ideally be liquidated, within the time frame of
repayment, through the income to be generated from the project. However, client's
resourcefulness is of paramount importance, the sector being highly sensitive to economic
shocks.
Entire location, nature of the property whether freehold or lease holds (if lease hold, conditions
of lease as well as confirmation of up to date payment of installment etc. shall be considered),
estimated cost vis--vis borrower's stake, suitability of building's proposed use, duly passed
plan/clearance from the competent authority etc. Like industrial term loan, the repayment
schedule and moratorium carry a great weight in this type of finance.
Problem Study
46 | P a g e
During my Internship I work on JBL Credit department especially on Real Estate Financing
section. So I see what types of problem face a JBL Real Estate Financing customers. I talk to
them and want to identify as a customer what types of service they want. Are they happy the
present interest rate and service of JBL? Are they satisfied with the JBL credit sanction
procedure?
To find out these types of answer I am doing this research.
My Proposal
JBL should provide more quick service in Credit department. They also need to quick for the
loan sanction procedure. I think they also consider about their service, they can divvied Credit
Committee from head office to others branch.
Project Duration:
1 Month: 11 March 2011 to 11 April 2011
Cost:
Particular
Amount (BDT)
Mobile Bill:
Communication:
Others:
Total
200
200
500
900
Methodology
47 | P a g e
The study has been conducted among 60 employees of Jamuna Bank Limited employed in
different level of management hierarchy and the customers of credit department. Both primary
data and secondary information have been used. Primary data have been collected by
questionnaire survey. The questionnaire contained only liker scale. Secondary information has
been collected through studying of their Annual Report of Jamuna Bank Limited. Website and
other related sites also used here.
Sampling Plan:
Population: The population of this study is defined as follows:
a. Element: Employees and Customers of Ashulia Branch.
b. Unit: Only those customers in JBL at different level.
c. Time: 1 Month (10 March, 2011 to 10 April, 2011).
Sample size:
The sample size of this study has been consisted of the customers of Jamuna Bank Limited
operating in Ashulia branch. A total of 60 people had been selected randomly. The population has
been defined both male and female.
Sampling Procedure:
For conducting this study personnel were randomly selected from the total personnel. The
personnel that are the population consist of Customers (both male and female) of Jamuna Bank
Limited.
Data Sources:
In order to meet the data requirements and collect the above mentioned information following
sources has been used:

48 | P a g e
Primary Data Sources: Primary data has been collected from the individual customers of JBL
by face to face questions and answer and oral conversation with different employees as well.
Secondary Data Sources: Important sources of secondary data for conducting this research
were:
Different reports and journals of Jamuna Bank Ltd.
Relevant business research books
Annual report of JBL (2009-2010)
Web-site of the bank
Analysis of Data: For analysis of data Microsoft Excel have used. To entry data coding option
has been used at the initial stage. Both Parametric and non-parametric statistical tools were used
to derive a meaningful conclusion from the empirical data. The measure of dispersion,
correlation co-efficient, index numbers and regression analysis were applied. In addition, basic
statistical techniques of different measures of central tendency have been used in analyzing the
data.

49 | P a g e
HYPOTHESIS DEVELOPMENT
With a view of fulfilling the objectives some relevant hypothesis have been formulated for this
study:
1. HA: Customers are satisfied with the JBL Real Estate Financing.
2. HA: Customers are satisfied with the interest rate of JBL Real Estate Financing.
3. HA: JBL quarterly Real Estate Financing Installment system perfect for the customers.
4. HA: JBL provides quick service as a Real Estate Financing.
5. HA: Customers think Real Estate Financing loan processing time is high.
6. HA: Customers are accepting to pay late fee charge.
7. HA: Customers think JBL loan service charge is flexible.
8. HA: Customers are satisfied with the JBL credit sanction procedure.
9. HA: Customer think JBL employees are co-operative.
10. HA: Customers are satisfied with the JBL loan settlement system.

50 | P a g e
Graphical Representation and Interpretation of Researching Data

1. H0: Customers are not satisfied with the JBL Real Estate Financing.
HA: Customers are satisfied with the JBL Real Estate Financing.
In other words,
H0: = 2.5
HA: > 2.5
N= 60
Here X = 4.4
= 4.94
Z Cal = ( X - ) / ( / n) = 2.97
Chart Title
40%
60%
Strongly disagree
Disagree
Neither agree nor

disagree
Agree
Strongly Agree
Fig No.1: Respondents view towards satisfied with the JBL Real Estate Financing.
At 5% level of significance, follows Z distribution Z0.05 = 1.645

Since Z Cal> Z tab, the null hypothesis is not accepted. So it can be said that at 5% level of
significance, Customer are satisfied with the JBL Real Estate Financing.
60 % respondents had Agree that they are satisfied with the JBL Real Estate Financing.

51 | P a g e
2. H0: Customers are not satisfied with the interest rate of JBL Real Estate Financing.
HA: Customers are satisfied with the interest rate of JBL Real Estate Financing.
H0: = 2.5
HA: > 2.5
N= 60
Here X = 4.4
= 4.42
Z Cal = ( X - ) / ( / n) = 3.33
Chart Title
7%
47%
47%
Strongly disagree
Disagree
Neither agree nor

disagree
Agree
Strongly agree
Fig No.2: Respondents view towards with the interest rate of JBL Real Estate Financing.

significance, JBL customers are with the interest rate of JBL Real Estate Financing
93% respondents had agreed that, with the interest rate of JBL Real Estate Financing.

52 | P a g e
3. H0: JBL quarterly Real Estate Financing Installment system not perfect for the customers.
HA: JBL quarterly Real Estate Financing Installment system perfect for the customers.
In other words,
H0: = 2.5
HA: > 2.5
N= 60
Here X = 3.87
= 6.35
Z Cal = ( X - ) / ( / n) = 1.67
Chart Title
17%
Strongly disagree
Disagree
Neither agree nor

disagree
Agree
Strongly agree
83%
Fig No.3: Respondents view towards Installment system perfect for the customers.

significance, Installment system perfect for the customers.
Around 83% respondents have agreed about Installment system perfect for them.

53 | P a g e
4. H0: JBL doesnt provide quick service as a Real Estate Financing.

HA: JBL provides quick service as a Real Estate Financing.
In others word,
H0: = 2.5
HA: > 2.5
N= 60
Here X = 2.33
= 8.17
Z Cal = ( X - ) / ( / n) = 1.23
Chart Title
17%
8%
42%
Strongly disagree
Disagree
Neither agree nor

disagree
Agree
Strongly agree
33%
Fig No.4: Respondents view towards quick service as a Real Estate Financing.
Since Z Cal> Z tab, the null hypothesis is accepted. So it can be said that at 5% level of significance,
JBL doesnt provide quick service as a Real Estate Financing.
Around 42% respondents strongly disagree and 33% disagree with the quick service of JBL as a
Real Estate Financing.

54 | P a g e
5. H0: Customers does not think Real Estate Financing loan processing time is high.
HA: Customers think Real Estate Financing loan processing time is high.
In others word,
H0: = 2.5
HA: > 2.5
N= 60
Here X = 3.33
= 7.5
Z Cal = ( X - ) / ( / n) = 2.39
Chart Title
Strongly disagree
Disagree
9%
45%
18%
Neither agree nor

disagree
Agree
Strongly agree
27%
Fig No.5: Respondents view towards loan processing time is high.

.
significance, JBL loan processing time is high.
Around 46% respondents have strongly agree and 27% agree that JBL loan processing time is
high.
55 | P a g e
6. H0: Customers are not accepting to pay late fee charge.

HA: Customers are accepting to pay late fee charge.
In others word,
H0: = 2.5
HA: > 2.5
N= 60
Here X = 3.73
= 5.0
Z Cal = (X - ) / ( / n) = 1.89
Chart Title
7% 7%
20%
Strongly disagree
Disagree
Neither agree nor

disagree
Agree
Strongly agree
67%
Fig No.6: Respondents view towards accepting to pay late fee charge.

significance, accepting to pay late fee charge.
Around 67 % respondents are accepting to pay late fee charge.

56 | P a g e
7. H0: Customers didnt think JBL loan service charge is flexible.

HA: Customers think JBL loan service charge is flexible.
H0: = 2.5
HA: > 2.5
N= 60
Here X = 2.33
= 7.17
Z Cal = ( X - ) / ( / n) = 2.23
Chart Title
Strongly disagree
Disagree
9%
16%
Neither agree nor

disagree
Agree
55%
20%
Strongly agree
Fig No.4: Respondents view towards JBL loan service charge is flexible.
significance, JBL loan service charge is flexible.

57 | P a g e
Around 55% respondents strongly agree and 20% agree that loan service charge is flexible.
8. H0: Customers doesnt satisfy with the JBL credit sanction procedure.
HA: Customers are satisfied with the JBL credit sanction procedure.
In others word,
H0: = 2.5
HA: > 2.5
N= 60
Here X = 2.44
= 8.28
Z Cal = ( X - ) / ( / n) = 1.31
Chart Title
Strongly disagree
8%
Disagree
8%
Neither agree nor

disagree
50%
33%
Agree
Strongly agree
Fig No.8: Respondents view towards satisfied with the JBL credit sanction procedure.

Since Z Cal> Z tab, the null hypothesis is accepted. So it can be said that at 5% level of significance
Customers doesnt satisfy with the JBL credit sanction procedure.

58 | P a g e
Around 50% respondents have strongly disagreed and 34% respondents have disagree with the
JBL credit sanction procedure.
9. H0: Customer think JBL employees are not co-operative.

HA: Customer think JBL employees are co-operative.
H0: = 2.5
HA: > 2.5
N= 60
Here X = 4.2
= 4.26
Z Cal = (X - ) / ( / n) = 3.09
Chart Title
Strongly disagree
22%
8%
Disagree
8%
Neither agree nor

disagree
Agree
Strongly agree
62%
Fig No.9: Respondents view towards JBL employees are co-operative.

59 | P a g e

significance, JBL employees are co-operative.
Around 62%respondents have identified that JBL employees are co-operative.
10. H0: Customers are not satisfied with the JBL loan settlement system.
HA: Customers are satisfied with the JBL loan settlement system.
In others word,
H0: = 2.5
HA: > 2.5
N= 60
Here X = 3.8
= 5.43
Z Cal = (X - ) / ( / n) = 1.86
Chart Title
13% 13%
7%
Strongly disagree
Disagree
Neither agree nor

disagree
Agree
Strongly agree
67%
Fig No.10: Respondents view towards satisfied with the JBL loan settlement system

60 | P a g e
significance, customers are satisfied with the JBL loan settlement system.
Around 67% respondents have identified that JBL loan settlement system is satisfied.
Findings:
1. 60 % respondents had Agree that they are satisfied with the JBL Real Estate Financing.
2. 93% respondents had agreed that, with the interest rate of JBL Real Estate Financing.
3. Around 83% respondents have agreed about Installment system perfect for them.
4. Around 42% respondents strongly disagree and 33% disagree with the quick service of
JBL as a Real Estate Financing.
5. Around 46% respondents have strongly agree and 27% agree that JBL loan processing
time is high.
6. Majority of respondents are accepting to pay late fee charge.
7. Around 55% respondents strongly agree and 20% agree that loan service charge is
flexible.
8. Around 50% respondents have strongly disagreed and 34% respondents have disagree
with the JBL credit sanction procedure.
9. Around 62%respondents have identified that JBL employees are co-operative.
10. Around 67% respondents have identified that JBL loan settlement system is satisfied.

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Recommendations:
JBL should need to provide more quick service in Real Estate Financing for example they
need a call center department that will be very popular now a day.
They need work more quick in loan processing time.
They also need to provide more conscious about credit sanction procedure.
Form my point of view they can open division wise loan sanction committee, as a result
head office loan sanction committees some presser will reduce.
Conclusion:
As an organization the Jamuna Bank Limited has earned the reputation of top banking operation
in Bangladesh. The organization is much more structured compared to any other banks operating
local or foreign in Bangladesh. It is unyielding in pursuit of business innovation and
improvement. It has a reputation as a partner of consumer growth.
With coverage of qualified and experienced human resource, Jamuna Bank Limited can exploit
any opportunity in the banking sector. It is pioneer in introducing many new products and
services in the banking sector of the country. Moreover, in the overall-banking sector, it is
unmatched with any other banks because of its wide spread branch networking thought the
country.
This report tries to figure out most of the indicators of Problems and Strengths of Jamuna Bank
Limited as a valid pretender in the competitive banking sector of Bangladesh under the Loan
Management especially in Real Estate Financing. A severe cut throat competition is going on
currently in this sector and thats why Jamuna Bank Limited has to work out with different
62 | P a g e
dimensions like product diversification, market forecasting, proactive activities undertaken by

Jamuna Bank Limited and some suggestion to get rid of the predicaments that exist.
I am hopeful that time may emerge in near future when this poor nation will come into the light
of development if the conventional banks working in our country advance along with Jamuna
Bank to take part into various welfare programs.
QUESTIONARIES
Dear Sir/Madam,
I am, Taslima Akter student of International University of Business Agriculture &
Technology (IUBAT), did my internship in JBL; under Credit department. This questionnaire is
part of the practicum report Real Estate Financing of Jamuna Bank Ltd. The objective of
this survey is to find out whether the customers are satisfied with the current service level of the
JBL, which helps me to make a project report successfully.
Your participation is voluntary. You may refuse to answer any question or discontinue
participation at any point.
There is no personal risk to you in responding to this
questionnaire since your identity will be known only to the Surveyor. No information
concerning respondents will be given to others.
1. Are you satisfied with the JBL Real Estate Financing?

A. Strongly Disagree
B. Disagree
C. Neither agree nor disagree
D. Agree
E. Strongly agree
2) Are you satisfied with the interest rate of JBL Real Estate Financing?
B. Disagree
D. Agree
E. Strongly agree
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3) Do you think JBL quarterly Real Estate Financing Installment system perfect for you?
B. Disagree
D. Agree
E. Strongly agree
4) Do you think JBL provides you a quick service as a Real Estate Financing?
B. Disagree
D. Agree
E. Strongly agree
5) Do you think JBL Real Estate Financing loan processing time is high?
B. Disagree
D. Agree
E. Strongly agree
6) Do you accept to pay late fee charge?
B. Disagree
D. Agree
E. Strongly agree
7) Do you think JBL service charge is flexible?
B. Disagree
D. Agree
E. Strongly agree
8) Are you satisfied with the JBL credit sanction procedure?
B. Disagree
D. Agree
E. Strongly agree

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9) Do you think JBL employees are co-operative?

B. Disagree
D. Agree
E. Strongly agree
10) Are you satisfied with the JBL loan settlement system?
B. Disagree
D. Agree
E. Strongly agree
Customers name
Bibliography:
65 | P a g e
Signature of customer
Magazines/Books:
P N Versheney Banking Law & Practice
Khan & Jain Financial Management
Basley Brigham Essentials of Managerial Finance. .
Eugene F. Brigham Intermediate Financial Management
The Daily English Newspaper The Daily Star & The Daily Observer
Credit Risk Grading Manual, Bangladesh Bank, 2006
Credit Policy Guidelines, Jamuna Bank Ltd. 2006.
AGM report 2009 of Jamuna Bank Ltd.
Eleven Extra Ordinary General Meeting, 2009
Peter S. Rose. Commercial Bank Management.
I M Pandy Financial Management
Websites:
www.jamunabank.bd.com
www.siblbd.com
www.epb.gov.bd
www.mincom.gov.bd
www.bangladesh-bank.org
www.cpd-bangladesh.org
www.adb.org/bangladesh
www.google.com

66 | P a g e

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1.1.

1.3. OBJECTIVE OF THE REPORT

To present an overview of Jamuna Bank Limited.

To find out the overall pictures of Real Estate Financing of JBL.

To identify the problems of Jamuna Bank Limited.

To suggest remedial measure for the development of Jamuna Bank Limited.

The first obstruct is time itself.

It was very difficult to collect data, which is very essential

Sufficient books, Publications, Fats and Figures are not available.

Real Estate Financing of Jamuna Bank Limited

Lack of customer cooperation.

Real Estate Financing of Jamuna Bank Limited

To establish relationship banking and improve service quality through development

To introduce fully automated systems through integration of information technology.

To maintain a healthy growth of business with desired image.

To develop and retain a quality work-force through an effective human Resources

To ensure optimum utilization of all available resources.

To pursue an effective system of management by ensuring compliance to ethical

2.5 STRATEGIES of JBL

To promote organizational effectiveness by openly communicating company plans,

To cultivate a working environment that fosters positive motivation for improved

To diversify portfolio both in the retail and wholesale market

To increase direct contact with customers in order to cultivate a closer relationship

2.6 CORE VALUES

Real Estate Financing of Jamuna Bank Limited

of new banking products and services.

For the shareholders: Maximizing wealth of the Bank.

2.7. CORPORATE PROFILE

Jamuna Bank Limited

Public Limited company

Your partner for growth

June 03, 2001

The 4000.00 million.

The 1,313.27 million

Banking industry of Bangladesh

Banking Business with different financial

Individuals and corporate customers

2.8 Board of Directors

Figure: 1 Board of Directors

2.9 MANAGEMENT HIERARCHY

Figure: 2 Management Hierarchies

2.10 GENERAL ACTIVITIES OF JBL

Real Estate Financing of Jamuna Bank Limited

Following are broadly explaining all this type of account:

Current Account (CD):

Saving account (SB):

Monthly Savings Scheme (MSS)

Fixed Term Deposit account (FDR)

Real Estate Financing of Jamuna Bank Limited

Short Term Deposit (STD)

Real Estate Financing of Jamuna Bank Limited

pre-arrangement of fund to ensure higher educations the children. Otherwise

their children specially

Real Estate Financing of Jamuna Bank Limited

Loans and Advances

Real Estate Financing of Jamuna Bank Limited

Loan Products and Services:

Inward bill for collection (IBC)

3.1 Credit Management of JBL

3.2 What is Loan?

3.3 Credit Management

3.4 Sanctioning Loans and Advance

3.5 Credit Policy of the Bank