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Chapter-1

Introduction

1.1 Origin of the Term paper


After completion of 1 year in the BBA Hons from the department of Accounting
Bikrampur Adarasha College. So the preparation and submission of this Term
paper is partial requirement for the completion of the Bachelor of Business
Administration (BBA) Honors. This Term paper is outcome of the program
conducted in Bank Asia Limited Ashulia Branch, one of the reputed private
commercial banks of the country. While working in the bank the standard
operating procedures carried out by the bank the standard operating procedures
carried out by the bank were observed and understood.

1.2 Objectives of the Term paper


This Term paper is prepared for Bachelor of Business Administration (BBA)
Honors requirement in BBA Honors, Department of Accounting, Bikrampur
Adarasha College.

Re secondary objectives of this Term paper are:


Describe Loan Management of Bank Asia Limited
To show the services offered by Bank Asia Limited
To identify the major Strength and Weakness of Bank Asia Limited in
respect to other banks Loan Management.
To recommend ways and means to solve problems regarding Credit
Operation of Bank Asia Limited.

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1.3 Scope of the Term Paper
In this report we worked about BAL management process of SME. For financing SME
BAL management capacity which is requirements of Central bank. SME loan processing
steps. As a developing country SME financing is so important and Bank Asia Limited
playing a great role by financing SME. Bank Asia Limited mission vision, branches
network, corporate social responsibility. Some findings and recommendation for BAL.

1.4 Limitation of the Study


As a financial organization, a bank has some restrictions to serve all the real data of the
bank to the general people, and I had no authority to use the core banking software
(Flora). I have faced lots of barriers while preparing the report. Some limitations are as
follow:
I have to go under my day to day job responsibility which I am supposed to do.
So, I could get few more time to spend in collecting data for preparing my
internship report
The data and information related to the topic on this organization was not easily
available.
The organization maintains some confidentiality while giving information
regarding their department. So the report is focused on the limited factors and
leaving out some other relevant factors.
Due to rush banking hour its quite difficult to collect the information from the
respective person.

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Chapter-2
Conceptual Issues

2.1 Historical background of Bank Asia Ltd.


A scheduled commercial bank in the private sector established under the Banking
Company Act 1991 and incorporated in Bangladesh as a public limited company under
the Companies Act 1994 to carry out banking business in Bangladesh.
Bank Asia Limited acquired the business of Bank of Nova Scotia, Dhaka in the year 2000
and at the beginning of the year 2000 the Bank also acquired the Bangladesh Operation of
Muslim Commercial Bank Limited (MCBL), a bank incorporated in Pakistan, having two
branches at Dhaka and Chittagong with one booth at Dhaka.
The Bank at present carrying its banking activities through Thirty (30) including ATM,
Locker & Foreign Exchange services in the country. The paid up capital of the Bank is
1245 million. It has five rural branches as well. They are going to introduce their 31 st
branch in Maymensing on June 06, 2016.

2.2 Vision Statement


Bank Asias vision is to have a poverty free Bangladesh in course of a generation in the
new millennium, reflecting the national dream. Its vision is to build a society where
human dignity and human rights receive the highest consideration along with reduction of
poverty.
2.3 Mission Statement
To assist in bringing high quality services to its customers and to participate in the
growth and expansion of our national economy.
To set high standards of integrity and bring total satisfaction to its clients,
shareholders and employees.
To become the most sought after bank in the country, rendering technology driven
innovative services by its dedicated team of professionals.

2.4 Corporate Information


(Information as per last Annual Report 2015)

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Name of the bank : Bank Asia Limited
Status : Private Limited Company
Date of Incorporation : 28/09/1999
Head Office : 124, Motijil, Dhaka
Chairman : Mr. Anisur Rahman Sinha
Managing Director : Mr. Erfanuddin Ahmed
Total Capital : 15000(ml)
Paid up Capital : 5000(ml)
Director : 14
Number of Branches : 112
Deposits : 42435
Total loan& Advance : 39975

2.5 Commitments
It is a customer focused modern banking making sound and steady growth in both
mobilizing deposit and making quality investment to keep our position as a
leading Bank in Bangladesh.
To deliver financial services with the touch of our heart to retail, small and
medium scale enterprises, as well as corporate clients through branches across the
country.
Business initiatives are designed to match the changing trade and industrial needs
of the clients.
The bank is committed to establish an economic system resulting in social justice
and equitable distribution of wealth. It is committed to bring about changes in the
underdeveloped rural areas for ensuring balanced socio economic development of
the country through micro credit program and financing of SMEs as well.
To render improved services to the clients imbued with sprit of brotherhood, peace
and fraternity and by developing an institutional cohesion.

2.6 Number of Branches


The bank has now 106 branches different place. More new branches in the coming year
will help the bank improve its image with concurrent salutary impact on client servicing
and financial result.

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2.7. Corporate Culture
This bank is one of the most disciplined Banks with a distinctive corporate culture. Here
we believe in shared meaning. Shared understanding and shared sense making. Our
people can see and understand events, activities, objects and situation in a distinctive way.
They mould their manners and etiquette. Character individually to suit the purpose of the
Bank and the needs of the customers who are of paramount importance to us. The people
in the Bank see themselves as tight knit team/ family tat believe in working together for
growth. The corporate culture we has not been imposed. It has rather been achieved
through our corporate conduct.

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2.8 Hierarchy structure of Bank Asia Ltd.

Chairman Advisor Board of


Chairman Advisor Board of
Directors
Directors
Managing Director
Managing Director

Senior Executive Vice President


Senior Executive Vice President

Executive Vice President


Executive Vice President

Senior Vice President


Senior Vice President

Vice President
Vice President

Senior Assistant Vice President


Senior Assistant Vice President

Assistant Vice President


Assistant Vice President

Senior Principal Officer


Senior Principal Officer

Principal Officer
Principal Officer

Executive Officer
Executive Officer

Officer
Officer

Management Trainee officer


Management Trainee officer

Junior Officer
Junior Officer

Assistant Officer
Assistant Officer

Trainee Assistant Officer


Trainee Assistant Officer

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2.9 Achievement
It is a great pleasure that by the grace of Almighty Allah. The bank migrated at a time all
the branches from its conventional banking operation into based banking operation
without any trouble. The officers and executives of bank motivated the valued customers
by counseling and persuasion light with the spirit of especially for the non-Muslim
customers. It division has done the excellent job of converting and fitting the
conventional business processes in to the processes based on banking system. It has been
made possible by following a systematic procedure of migration under the leadership of
honorable Managing Director.

2.10 Product Scheme


The product and services that are currently available are given below:
Bank Asia Limited launched several financial products and services since its inception.
Among them are Monthly Savings Scheme, Monthly Benefit Scheme, Special Savings
Scheme, Consumer Credit Scheme, Small Loan Scheme, and Rural Finance Scheme & E-
cash ATM. All of these have received wide acceptance among the people.
Monthly Savings Scheme (DG+): The prime objective of this scheme is to encourage
people to build up a habit of saving. In this scheme, one can save a fixed amount of
money every month and receive substantial lump sum of money after three or six months.
Monthly Benefit Scheme (MB+): MB+ is a five (05) years scheme that lets depositors
earn monthly benefit of TK. 1000 or its multiple by minimum initial deposit of TK.
100,000 or its multiple and after maturity depositors will get refund of his/her principle
amount.
Special Savings Scheme (DB+): DB+ is a six (06) or ten (10) years scheme. The deposit
doubles in 06 years and triples in 10 years.
Bonus Savings Scheme: A savings account with a minimum balance of TK. 50,000 will
attract not only the usual savings interest but also a further 10% bonus on interest.
Personal Credit: Consumer loan is a relatively new field of collateral-free finance of the
bank. People with fixed income can avail of these credit facilities to buy household
goods, consumer items, buy car or to renovate/expand existing house, etc.
Credit Loan: If anyone is in possession of BSP (Bangladesh Sanchaya Patra), which will
mature within the next 05 years, but he/she is in need of funds, the scheme can come to
rescue.

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Rural Development Scheme: Rural Development Scheme has been evolved for the rural
people of the country to make them self-employed through financing various income-
generating activities. This scheme is operated through the rural branches of the Bank.
E-Cash Banking Facility: The E-cash card is an ATM card. It can be used as a
combination of debit facility. The E-cash card network offers ball banking requirements
without ever setting foot in a bank. Its more than just an ATM service for quick cash
withdrawals or account enquiries. E-cash card provides round the clock banking.

2.11 Depository Products


Bank Asia Limited is now offering different types product for mobilizing the savings of
the general people.
Deposit Product
Current Deposit
Saving Deposit Account
Short Time Deposit (STD) Account
Fixed Deposit
Foreign Currency Deposit Account
NFCD Non Resident Foreign Currency Account

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Chapter-3
Database

3.1 Methodology
Methodology includes direct observation, face-to-face discussion with officers or
employees of different departments, study of files, circulars, etc. and practical
work. In preparing this report, both primary and secondary sources of information
have been used and to analyze those data Excel have been used.

Sources of the Data:


The following sources were used for the purpose of gathering and collecting data
are given below:

The primary sources are-


Direct communication with the clients
Observation of the employees
Exposure on different desk of the bank

The secondary sources are-


Annual Report of Bank Asia Limited.
Different Procedure Manual published by Bank Asia Limited.
Periodicals published by the Bangladesh Bank.
Searching related information from Internet

Different publications regarding banking functions, credit policies and SME


banking of Bank Asia Limited..

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Chapter-4
Analysis and Evaluation
4.0 Loan Management
he Loans Management - Business Operations ES bundle is a means of enabling
financial institutions to perform business operations during the lifecycle of a loan, such as
creation of the loan, disbursement of funds, allowing customers to skip a payment or
payoff a loan fully.
An installment loan is a standardized short- or mid-term loan product, which is typically
used to finance consumer-related products for private customers. It could also be used to
finance investment goods for small enterprises. A mortgage loan is a standardized mid- or
long-term loan product which is typically used to finance any purpose related to real
estates, i.e. building a new single family house or buying an apartment.
Following examples are given as example on the usage of a installment loans.
As soon as bank and customer have agreed about the installment loan contract the loan
creation is initiated and the loan capital is disbursed as soon as all preconditions, i.e.
collaterals, are fulfilled. Usually the customer repaysthe installment loan in equal monthly
installments including interest and principal, but other repayment schemes are also
possible (for example, adjustable installments or balloon payments at end of the loan
term). Because of a liquidity shortage in a manageable time frame the customer might
also ask to skip some payments.
The enterprise services in the Loans Management - Business Operations ES bundle allow
banks to create loan contracts, disburse capital from a loan, offer skip payment
functionality as a way of marketing their loan products and initiate the payoff of a loan.
In the first use case a customer and the bank agree about a new loan contract. The
customer consultant enters the contract data into his front office application so that the
loan contract is created in the backend system.
In the second use case the customer will request a disbursement from the loan to be
transferred to his bank account. A loans manager will go into the system to pull up the
customer's account details, and then run a series of steps to find out the amount which can
be disbursed. The loans manager can select due items such as fees or interest payments to
be deducted from the gross amount being requested for disbursement in order to calculate
the net loan disbursement.
In the third use case the customer asks to change the current payment plan as he would
like to increase the monthly installment rate The loans officer can go into the system ,
read the details on the current loan, specify when the next payment will be due, and
perform the payment plan change.
In the fourth use case the customer received unexpected money and the bank agrees that
he can make an early payoff. The loan manager accesses the system and specifies which
amount the customer has to pay to payoff the loan completely. The loan manager initiates
the required steps in the system

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4.1 Loan Policy
Bank Asia was established to provide term loan (including working capital loan) and
other financial assistance (including all kinds of banking facilities) to accelerate the pace
of development to small industry of Bangladesh. It is mandated in the Memorandum &
Articles of Association of Bank to advance a minimum of 50% of the loanable fund to the
small industry sector. As a broad policy objective in respect of small industry financing
the Bank undertakes the following tasks:
Extend financial assistance to small industries in private sector.
Extend financial assistance to micro-enterprises and collaborate with
other institutions engaged in financing and developing such enterprises.
The financial assistance shall include short-term working capital loan,
medium term and long-term capital finance to viable new SSI projects and
BMRE of SSI.
Undertake project promotion to identify profitable area of investment.
Cooperate and collaborate with institutions entrusted with the
responsibilities of promoting and aiding SSI sector.
At the time of extending credit Bank Asia Limited follows certain principles. Main
principles of loans and advances are as follows:
I. 50% of total loans and advances will be to small industry sector.
II. All lending will be adequately secured with acceptable security and margin
requirements as laid down by the Head Office Credit Committee.
III. The Bank will not incur any uncovered foreign exchange risk (currency exposure)
in the lending of funds.
IV. No term loans will be approved for the commercial sector. Exceptions will be rare
and will require approval of the Head Office Credit Committee.
V. End-use of term loan and working capital facilities will be closely monitored to
ensure that the funds are used for the purpose for which they were advanced.

VI. Loans and advances shall be normally funded from customers' deposits of
permanent nature, and not out of short-term temporary funds or borrowings from
other banks or through short-term money market operations.
VII. The aggregate outstanding loans and advances (excluding loans and advances
covered by specific counter-finance arrangements) will be dispersed according to
the following guidelines (subject to item 2 above whereby 50% of lending being
to small industry section):
Short term commercial lending. This category includes working capital to
hotel and tourism.
Facilities to Shipping and Transport (facilities for the purchase and
construction of ships / vessels and other modes of transport both by land
and air).

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VIII. Spreads over cost of funds on loans and advances and commissions and fees on
other transactions should be commensurate with the rating of the borrower, quality
of risk and the prevailing market conditions.
Evaluation of Borrower
It is very important for a banker to know details history of the borrower so that the fund
generate from loan should be used in a proper way and the repayment of loan made
within the required time. Branch credit committee must visited client business place and
other place where the borrower motivate his business. Here obtained some points for
marking in proposal analysis.
Prevalent credit practices in the market place.
Credit worthiness, background and track record of the borrower.
Financial standing of the borrower supported by financial statements and other
documents.
Legal jurisdiction and implications of applicable laws.
Effect of any applicable regulations and laws.
Purpose of the loan / facility.
Tenure of the loan / facility.
Viability of the business proposition.
Cash flow projections of the project.
Quality and adequacy of security, if available.
Risk taking capacity of the borrower.
Entrepreneurship and managerial capabilities of the borrower.
Reliability of the sources of repayment.
Volume of risk in relation to the risk taking capacity of the Bank.
Profitability of the proposal to the Bank or company concerned.

4.2 Pricing of Loan


Pricing of loan is a great important element in banking business. Because through pricing,
bank usually create margin/profit. So it is to be determined carefully. In pricing, four
components are to be calculated prudently otherwise pricing of that loan will create a
definite loss for the bank. The components are:
Interest Expense or Cost of Fund: The interest to be given to the depositor and to
central banks for borrowing
Administrative Cost
Cost of Capital: Return expected by the investors for their capital invested in the
Bank.
Risk Premium
Addition of the first three elements will provide the "Prime rate" beyond which a bank
can never go for lending. Magnitude of the risk premium creates margin for the bank.
And this rate of risk premium may vary from person to person and even from sector to
sector depending upon the value or importance of the client and the prospective priority

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of the sector. Once upon a time, it was dictated by the Central bank but now a day, in
compliance with the open market operation this power has been delegated to the enlisted
commercial banks.

4.3 Loan Appraisal


There is no hard and fast procedure of managing credit, yet is should follow the
instructions of the Bangladesh Bank, Central Bank of Bangladesh and the Circular of
Head Office from time to tome. The first step of credit proceedings is the request for
credit from the clients. Then scrutinizing and collection of information from primary and
secondary sources take place. Credit appraisal and evaluation is the most important part
of credit management. On the basis of evaluation approval is given by the higher-
authority with certain conditions to be fulfilled. Sanction of credit is done by the
sanctioning officer, who has the authority to sanction the Credits. After fulfilling the
conditions the credit is disbursed. Credit monitoring and reviewing start at the time of
disbursement. Necessary steps should be taken to minimize the risk and increase the
return of the Bank.. Lending risk analysis is also done in case of credit above Tk.50 lac.

4.4 Definition of Credit Risk Grading (CRG)


The Credit Risk Grading (CRG) is a collective definition based on the pre-
specified scale and reflects the underlying credit-risk for a given exposure.
A Credit Risk Grading deploys a number/ alphabet/ symbol as a primary
summary indicator of risks associated with a credit exposure.
Credit Risk Grading is the basic model for developing a credit risk
management system.

4.5 Functions of Credit Risk Grading


Well-managed credit risk grading systems promote bank safety and soundness by
facilitating informed decision-making. Grading systems measure Credit Risk and
differentiate individual credits and groups of credits by the risk. This allows bank
management and examiners to monitor changes and trends in risk levels. The
process also allows bank management to manage risk to optimize returns.

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4.6 Use of Credit Risk Grading
The credit risk grading matrix allows application of uniform standards to credits to
ensure a common standardized approach to assess the quality of individual obligor,
credit portfolio of aunt, line of business, the branch of the Bank as a whole.
As evident, the CRG outputs would be relevant for individual credit selection,
wherein ether a borrower or a particular exposure/facility is rated. The other
decisions would be relative to pricing (credit-spread) and specific feathers of the
credit facility. These would largely constitute obligor level analysis.
Risk grading would also be relevant for surveillance and monitoring, internal MIS
and assessing the aggregate risk profile of a Bank. It is also relevant for portfolio
level analysis.
4.6.1 Number & Short Name of Grades Used in CRG:
The proposed CRG scale consists of 8 categories with Short names and numbers
are prow\vided as follows:
GRADING SHORT Name NUMBER
Superior SUP 1
Good GD 2
Acceptable ACCPT 3
Marginal/Watch list MG/WL 4
Special Mention SM 5
Sub standard SS 6
Doubtful DF 7
Bad & Loss BL 8

4.7 Credit Risk Grading Scale:


A clear definition of the different categories of credit risk grading is given as follows
Superior- (SUP)-1
Credit facilities, which are fully secured i.e. fully cash covered.
Credit facilities fully covered by government guarantee
Credit facilities fully covered by the guarantee of a top tier international
Bank
Good (GD)-2
Strong repayment capacity of the borrower
The borrower has excellent liquidity and low
The company demonstrates consistently strong earnings and cash flow.
Borrower has well established, strong market share.
Very good management skill &, expertise.
All security documentation should be in place.
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Credit facilities fully covered by N, the guarantee of a top tier local Bank.
Aggregate Score of 85 or greater basest oil the Risk Grade Score Sheet
Acceptable - (ACC19) - 3
g
These borrowers arc not as strong as COOD Grade borrowers, hu still

demonstrate Consistent earnings, cash flow and have a good back record.
Borrowers have adequate liquidity, cash flow and earnings.

Credit in this grade would normally be secured by acceptable collateral ( its


charge over inventory / receivables / equipment / property).
Acceptable management

Acceptable parcel/sister company guarantee

Marginal/Watch list - (MG/WL) - 4


This grade warrants greater attention due to conditions affecting; the
borrower. 111c inclusion, or the economic environment.
These borrowers have an above average risk due to strained liquidity, higher
than normal leverage, thin cash flow and/or inconsistent canings.
The borrower incurs a loss
Loan repayments routinely fall past due
Account conduct is poor, or other untoward factors arc present.
Credit requires attention
Aggregate Score of 65-74 based oil the Risk Grade Score Sheet
Special Mention - (SM) - 5
This grade has potential weaknesses that deserve management's 's close
attention. If left uncorrected, these weaknesses may result in a deterioration of
the repayment prospects of the borrower.
Severe management problems exist
Facilities should be downgraded to this grade if sustained deterioration in
financial condition is noted (consecutive losses , negative net worth, excessive
Leverage.
An Aggregate Score of 55-64 based oil the Risk Grade Score sheet.
Substandard - (SS) 6
Financial condition is weak and capacity or inclination to repay
is in doubt.
These weaknesses jeopardize the full settlement of loans.
Bangladesh Bank criteria for sub-standard credit shall apply.
Ali Aggregate Score of 45-55 oil the Risk grade Score Sheet
Doubtful - (DF) 7
Full repayment of principal and interest is unlikely and Hic possibility of
loss is extremely high.
However, due to specifically identifiable pending factors. Such as litigation,
liquidation procedure or capital injection, the asset is not yet classified as
Bad & loss.

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Bangladesh Bank criteria for doubtful credit shall apply.
An Aggregate Score of less than 35-44 based on the Risk grade score sheet
Bad & Loss - (13L) - 8
Credit of this grade has long outstanding wills no progress in obtaining
repayment or on the verge of wind up/liquidation,
Prospect of recovery is poor and options have been pursued.
Proceeds expected from the liquidation or realization of security may be awaited.
The continuance of the loan as a bankable asset is riot warranted, and the
anticipated loss should have been provided for.
This classification reflects that it is not practical or desirable to defer writing off
this basically valueless asset even though partial recovery may be affected in the
future, Bangladesh Bank guidelines for timely write off of bad loans must be
adhered to. Legal procedures /suit initiated.
Bangladesh Bank criteria for bad & loss credit shall apply.
An Aggregate Score of less than 35 based on the Risk Grade Score Sheet.

4.8 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

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4.9 SME Scenario up to 2013 on Bank Asia Ltd.:
Numbers of SME borrowers 3,946
Loan disbursed (BDT millions) 4,698.60
Loan outstanding(BDT millions) 2,646.80
Loans Products 8
NPL 0.12%
Lending Growth (compared to 2009) 622.68%
Numrbers of business currently 2,182
serving(2010)
As a leading private commercial bank, BAL SMEs client growth and development with
providing rulal based clients has been remarkable. During thr year 2013. BAL SME
lending portfolio portfolio growth is 622.68%.

Year Numbers of Borrowers Loan Disbursed


(BDT millions)
2012 188 69.40
2013 720 320.30
2014 856 641.90
2015 2182 3667.00

2012 2013 2014


2015

Bangladesh is facing a electricity crisis, for this reason BAL is thinking a alternative way
of energy and best source of renewable energy, and the best source is renewable energy.
Thats why BAL has started a aid for environment conscious business and consumers
through better loan product BAL green energy, with lower rate of interest and re- finance
facility from Bangladesh.
4.10 BAL Ashulia Branch activities with SME:
I have worked on Bank Asia Ltd. Ashulia Branch so Im mentioning here BAL Ashulia
Branchs performance with SME.

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BAL Ashulia Branch has opened on 20 th dec, 2010. So This branch has crossed 1 year.
though their branch target is 1 crore per year for SME financing as a first year they just
approved 20 lac for SME to Four business organization, two for working capital financing
BAL revolving loan, One BAL women entrepreneurship loan, one as usual SME loan.
They are working hard to fulfill limit.

4.11 BAL Ashulia Branch approved SME loan on last 2013- 2015 and
plan for this year On BDT Million:

2013 2014
2015

4.12 The Recovery Department:


The Recovery Department should directly manage accounts with sustained dc1crioralion
(a Risk Rating of Sub Standard (6) or worse). Whenever an account is handed over from
Relationship Management to RU, a Handover/1Downgrade Checklist (Annexure - 9)
should be completed
Down Grading process should be done nomadically and should not be postponed unit the
annual review process.

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The CRU's primary functions are:
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 (NPLs) 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.

4.13 SWOT Analysis of Bank Asia Limited


Every organization is composed of some internal strengths and weaknesses and also has
some external opportunities and threats in its whole life cycle. The following will briefly
introduce the customers to the Bank Asias internal strengths and weaknesses, and
external opportunities and threats as I have explored in the past ten weeks.
Strengths
Superior quality: Bank Asia provides its customers excellent and consistent
quality in every service. It is of priority that customer is totally satisfied.
Dynamism: Bank Asia draws its strength from the adaptability and dynamism it
possesses. It has quickly adapted to world class standard in terms of banking
services. Bank Asia has also adapted state of the art technology to connect with
the world for better communication to integrate facilities.
Financial Strength: Bank Asia is a financially sound company backed by the
enormous resource base of the mother concern Rangs Group. As result customers
feel comfortable in dealing with the company.
service and development of a corporate brand image in the market through
organization wide team approach and open communication system.
State of the Art Technology: Bank Asia utilizes state-of-the-art technology to
ensure consistent quality and operation. The corporate office is equipped with
Reuters screen and SWIFT. All other AD branches are also equipped with SWIFT
system.
Experts: The key contributing factor behind the success of Bank Asia is its
employees, who are highly trained and most competent in their own field. Bank
Asia provides their employees training both in-house and out side job.

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Weaknesses
Limited Workforce: Bank Asia has limited human resources compared to its
financial activities. There are not many people to perform most of the tasks. As a
result many of the employees are burdened with extra workloads and work late
hours without any overtime facilities. This might cause high employee turnover
that will prove to be too costly to avoid.
Problem in Delivery: Few of the Bank Asias products offered to its clients like
Personal Credit (PC) is lying idle due to proper marketing initiative from the
management. These products can easily be made available in attractive ways to
increase its client base as well as its deposit status.

Opportunities
Government Support: Government of Bangladesh has rendered its full support to
the banking sector for a sound financial status of the country, as it has become one
of the vital sources of employment in the country now. Such government concern
will facilitate and support the long-term vision of Bank Asia.
Evolution of E-Banking: Emergence of e-banking will open more scope for Bank
Asia to reach the clients not only in Bangladesh but also in the global banking
arena. Although the bank has already entered the world of e-banking but yet to
provide full electronic banking facilities to its customer. A proper blend of

Threats
Mergers and Acquisition: The worldwide trend of merging and acquisition in
financial institutions is causing concentration. The industry and competitors are
increasing in power in their respective areas.
Poor Telecommunication Infrastructure: As previously mentioned, the world is
advancing e-technology very rapidly. Though Bank Asia has taken effort to join
the stream of information technology, it is not possible to complete the mission
due to the poor technological infrastructure of our country.
Frequent Currency Devaluation: Frequent devaluation of Taka and exchange rate
fluctuations and particularly South-East Asian currency crisis adversely affects the
business globally.
Emergence of Competitors: Due to high customer demand, more and more
financial institutions are being introduced in the country. There are already 52
banks of various types are operating in the country. Many banks are entering the
market with new and lucrative products. The market for banking industry is now a
buyer dominated market. Unless Bank Asia can come up with attractive financial
products in the market, it will have to face steep competition in the days to come.

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Chapter-5
Findings, Recommendations and Conclusion

5.1 Findings
During internship period in Bank Asia Limited in Ashulia Branch cover following
problems is observed:
1. Human Resource & their Co-ordination is must of any organization are
considered as a valuable asset. But in the branch, there is not much co-
ordinate as required among the employees.
2. Bank has fewer employees than required in the Loan Section.
3. The conditions of giving Loan are very much difficult & the process of
Proposals Approval takes more times.
4. Loan sanction procedure take long time & SME Loans has maximum interest.
5. There is shortage of computer in general banking section. Sometimes the
shortage of computer makes some unfortunate event in that section.
6. Flora On-line banking software is used by BAL and this is quite difficult to
use for the employee as the employees are not well trained.
7. Sometimes go on Network Problem in the On-Line.
8. This bank do not have sufficient plan to expand the Credit Card Market. It is
well versed that tomorrow's payment will be consisted of only plastic money
(Credit Card).
9. Employee is not sufficient as required.
10. Since a number of new banks are coming to existence with their extended
customer service pattern in a completely competitive manner. Customer-
services must be made dynamic and prompt. Now a days, people especially
business people have very little time to waste. So the bank should make its
service prompt so that people need not give more time in the banking
activities

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5.2 Recommendations
1. Bank Asia Ltd. need to provide more Loans to customer & also need to
reduce the Rates for some specialized sector such as SME, Handicrafts, and
Women Loan.
2. Though Bank Asia Ltd. using very popular software i.e. Flora bank on--line
software but the use of it is quite difficult for the employee.
3. Hopefully they will come with Credit Card in the near future.
4. They need to increase their ATM Booth over the country.
5. Customer service of bank has a greater impact on its customer. To provide
smarter customer service they need a call center department that will be
very popular now a day.
6. In our country financial problem is a great constraint in foreign trade. Bank
Asia Ltd. is very conservative for post-shipment finance. It stays in liberal
position the exporters can easily over-come their financial constraint.

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5.3 Conclusion:
As an organization the Bank Asia Ltd. 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, Bank Asia Ltd. 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 1.Bank
Asia Ltd. as a valid pretender in the competitive banking sector of Bangladesh under the
Loan Management. A severe cut throat competition is going on currently in this sector
and thats why Bank Asia Ltd. has to work out with different dimensions like product
diversification, market forecasting, proactive activities undertaken by Bank Asia Ltd. and
some suggestion to get rid of the predicaments that exist.
Bank Asia Ltd. is trying to create an overall climate for the introduction of large scale
Islamic Banking environment in Bangladesh. It has taken up a program to spread its
operations throughout the country as early as possible. It is playing a significant role in
various fields of economy such as industry, agriculture, trade and commerce,
transportation and many other fields. It is acting as trigger to boost the economy by
creating employment opportunity. It also undertakes various welfare programs for the
benefit of the society.

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Bibliography:
Magazines/Books:
Credit Risk Grading Manual, Bangladesh Bank, 2012
Credit Policy Guidelines, Bank Asia Ltd. 2015
Annual report 2015 of Bank Asia Ltd.
Peter S. Rose. Commercial Bank Management.
I M Pandy Loan Management
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

Websites:
www.bankasia-bd.com
www.epb.gov.bd
www.bangladesh-bank.org
www.cpd-bangladesh.org
www.adb.org/bangladesh
www.google.com

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