Internship Report on Loan Management of Agrani Bank PLC Rajshahi University Branch

Posted on 6th Dec 2024 09:50:11 AM Accounting


1.1 Introduction

Bank is a service providing financial institution. Efficient and profitable Bank systems an indicator of good and healthy economy of a country. Two main functions of commercial bank best are summarized as the borrowing and lending of money. Bank borrows money by taking all kinds of deposit and demand deposit. Thus a commercial bank. Whether it is through current account of fixed deposit account, mobilized the saving of the society. Then it provides this money to those who are in need of it by discounting bill of promissory notes. Our work is loan management evalution of Agrani Bank PLC Rajshahi University Branch, Rajshahi. To examine the bank performance one should be well acquainted with the general banking function the amount of loan and advances in an important item in the evaluation of bank performance.

1.2 Objectives of the Study

The objective of the study is to familiarize myself with real market situation. This study gives us a chance to co-ordinate with the theoretical knowledge and the practical experience. The main objective of the study is to have an assessment about credit management & performance evalution of Agrani Bank PLC. In addition the study seeks to achieve the following objectives:

  • To fulfill the course requirement of BBA Program.
  • To have exposure to the functions of banking section.
  • To get an idea about the history of Agrani Bank and nature of operation.
  • To have a clear concept on departmentalization and the authority entrusted on different officials.
  • Evaluation of the present performance of the Bank regarding credit functions.
  • Recommending some guidelines to improve the effectiveness and efficiencies of credit services based on the findings and analysis.

1.3 Scope of the Study

Agrani Bank PLC emerged 3th generation commercial bank to provide efficient banking services and to contribute socio-economic development of the country. My Study covers the organizational structure, background, functions, Loan management & performance evalution of Agrani Bank PLC

This study has been prepared on the basis of experience gathered during the period of internship from April 10 to July 10, 2024. As I was sent to Agrani Bank PLC, Rajshahi University Branch, the scope of the study is only PLC to this branch.

1.4 Methodology of the Study

To fulfill an internship program and prepare a complete report we need organizational data. The data was collected from the “Agrani Bank, Rajshahi University Branch” during the internship period. The data are two types as follows-

  1. Primary data
  2. Secondary data

1.4.1 Collection of Primary Data

To collect the primary data, personal visits and interviews with the concerned officers were carried out.  Several times I personally made open-discussion with the officers and employees in each department about my purpose and I collected information.

To prepare this report following two types of method are used-

  1. Interview Method
  2. Questionnaire Method

1.4.1.1 Interview Method

I gathered information and data by interview. I have taken interview of the manager of Agrani bank, Rajshahi University Branch as well as some other officers who are related to Loan sections. They were quite cooperative within their limitation to provide required information and advice. I also discussed with some employees and clients of the Rajshahi University Branch in regard to their satisfaction in this branch.

My activities to collect primary data as like:

  1. Personal interview with branch officials or executives
  2. Personal observation.
  3. Practical desk work
  4. Getting information from face to face dealing with the client.
  5. Interviewing the persons who are treated experts in respective to the assignment.
  6. Customers file study in the Account opening& Loan division.
  7. Collect financial information from Agrani Bank accounts division.

1.4.1.2 Questionnaire Method

At first we make a questionnaire as the instruction of our supervisor about the Agrani Bank, I first develop our questionnaire to discuss with the Manager and other officers of Agrani Bank, Rajshahi University Branch. They also added some question in our questionnaire. I collect information and data from the officers and sources.

1.4.2 Collection of Secondary Data

Official’s records of Agrani Bank PLC Rajshahi University Branch are the main source of secondary data. Moreover tried to collect more information from other available sources, such as-

  1. This study is based on both primary and secondary data.
  2. Others sources of secondary data are as follows:
  3. Annual report of Agrani Bank PLC-2011, 2012, 2013, 2014 and 2015.
  4. Web page of Agrani Bank PLC
  5. Bangladesh bank report.
  6. Published or unpublished or personally collected data from officers.
  7. Files and documents of the branch.
  8. Some articles on banking sectors.
  9. Different textbooks.

The following tools and techniques have been used for this analysis:

  1. Tables
  2. Different Charts i.e. Pie Chart & Column Chart etc.
  3. Graphical presentation.

1.5 Limitations of the Study

  1. Lack of sophisticated knowledge: As a student in research field, I have no experience in data collection, processing, analyzing, interpreting and presenting. The main constraint of the study is inadequate access to information, which has hampered the scope of analysis required for the study. As it is a new bank it could not start all its operation, it was unable to provide some formatted documents data for the study.
  2. Time lags: There was very short time to complete this study program properly. So, I had to conduct with all functions within short time. I have had no opportunity to compare the deposit mobilization system of the Agrani Bank with that of other contemporary and common size banks. It was mainly because of the shortage of time and internship nature
  3. Fund unavailability: To operate this study program, there was no available money. Also there was no source for financial support. So, I could not able to interview with more respondent and covering survey area. 
  4. Unavailability and inefficiency to interpret secondary data: Every organization has their own secrecy that is not revealed to others. While collecting data i.e. interviewing the employees, they did not disclose much information for the sake of the confidentiality of the organization. From   secondary sources I have not got available relevant data. Moreover, I have no proper knowledge to collect secondary data.
  5. Lack of co-operations: I received co-operation from the concerned officials who are not always able to give me enough time, as they were busy with their own businesses.
  6. Conservatism: Some respondents were conservative and they did not express their opinion freely.
  7. Limited sample area: The study covers only three years period is not sufficient enough for scientific and comprehensive decision making using sophisticated statistics.
  8. Verification of data: Another problem is that creates many confusions regarding verification of data. In some cases more than one person were interviewed to clarify each concept as many of the bankers failed to provide clear-cut idea about the job they perform.

The clients were too busy to provide me much time for interview.

However, An internship program helps to enhance the ability to job experience and practical knoledge of job sector. It also makes professional attitude.

 

Contact us to read the full 'Internship Report' internshipreport12@gmail.com

 

CONTENTS

CHAPTER ONE: INTRODUCTION

1.1 Introduction

1.2 Objectives of the Study

1.3 Scope of the Study

1.4 Methodology of the Study

1.3 Limitations of the Study

CHAPTER TWO: THEORETICAL OVERVIEW OF BANK 

2.1 Bank

2.2 The Origin and Historical Evolution of Bank

2.3 Banking Background of Bangladesh

2.4 Commercial Bank

2.5 Organizational Structure

2.6 Function of Commercial Banks

2.7 A Brief Overview of Agrani Bank PLC

2.8 Location of Rajshahi University Branch Rajshahi

2.9 Hierarchy of Agrani Bank

2.10 Bank Divisions

2.11 Geographical location wise segments report

2.12 Highlights on the overall activities of the bank

2.13 Office and Branch of Agrani Bank PLC

CHAPTER THREE: LOAN MANAGEMENT 

3.1 Introduction to Loan

3.2 Importance of Bank Loan (Macro and Micro Aspect)

3.3 Loan management

3.4 Objectives of Loan management

3.5 Target Customers of Agrani Bank, Rajshahi University, Branch

3.6 Importance of Loan Policy

3.7 Elements of a Good Loan Policy

3.8 Lending Principles Followed by Agrani Bank

3.9 Types of Loans and Advances Offered by Agrani Bank

3.10 Procedures for Giving Advances

3.11 Loan Risk Analysis

3.12 Types of Security

3.13 Common Methods of Charging Security and Their Nature of Security

3.14 Existing Process of Handling Loans

3.15 Guarantee

3.16 Issuance Procedure of Guarantee

3.17 Industrial Sectors Financed by Agrani Bank

3.18 Classification of Industrial Loan of Agrani Bank

3.19 Sources of Funds for Industrial Loan

3.20 Consortium for Industrial Loan

3.21 Application for Industrial Loan

3.22 Project Appraisal

3.23 Disbursement Procedures of Industrial Loan

3.24 The Process of Loan Recovery

3.25 Presentation and Interpretation of Data

CHAPTER FOUR: MAJOR FINDING AND RECOMMENDATION CONCLUSION

4.1 Finding

4.2 Recommendation

4.3 Conclusion

BIBLIOGRAPHY



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