findings of intern

7/29/2019 Findings of Intern

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5.1 Findings from the customers survey:

The major findings of this survey are as follows:

In last five years the maximum portion of total income of BASICBank Limited comes from the interest income from loans and

advances. It indicates the good performance of the credit division.

Credit Policy is being updated by the Board of Directors of the Bankwith any change being made by Ministry of Industry in its industrial

policy. Recently, the following change is being enacted in the existing

credit policy of BASIC Bank.

Total loan processing time can be reduced but policy guidelines byBangladesh Bank require involvement of different top layers of the

Bank.

There is not sufficient internet connectivity in the branch level. The informative advertisement is not to attract the all types of

customer.

The credit facilities are more attractive only for Agro-based Industrythen the others.

They are very much strong in capital adequacy and asset quality, andliquidity management was good in the last five years.

The credit policy of BASIC Bank is not very restrictive andaggressive. As a result, its loan sanction procedure is somewhat

straightforward.

All customers worried about the lengthy processing time of loan The credit departments working environment is also not good to the

entire customer.

Employee of the credit department for the customer is not so muchsatisfactory.


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After disbursement of loan the customers view the cast of loan is toomuch for that whole loan is not more effective in the market.

6.1 Recommendations:

From the survey, it is consider providing some following recommendation

for various customers:

In the credit department, strict supervision is necessary to avoid loandefaulters. The bank official should do regular visit to the project.

In a competitive financial market, their products & services need tofocused more on customers needs then simply offering what the

customers are offering.

The loan policy and loan sanction procedure should be made flexible,easy to understand and user friendly. So that all the credit concerns

can understand the instruction and follow it meticulously at the time of

credit risks management.

An industry wise integrated Credit Risk Grading system should bedeveloped. So that risk can measure for different industry of business.

Online Banking is the demand of today's dynamic world. To facilitatethe credit operation system, online Banking contributes radically in

increasing efficiency.

The top management should take necessary measures to speed up thecurrent Credit approval system.

To decentralize the delegation of power for quickening the creditsanctioning time. For betterment of the credit management system, the

delegation of powers should be more decentralized.

The Bank should take care of lengthy loan processing time The Bank should give more technological support and internet

accessibility at the branch level.

To create better client the bank should increase the amount ofconsumer loans in a Short-term basis.


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The above recommendations will be advantageous for the commercial banks

if these are attained in case of credit management. As a result nonperforming

loan will be reduced as well as the financing will steer the wheel strongly in

the economy of Bangladesh.

6.2 Conclusion

Credit policy is a very convenient banking tool for the business world. The

value of this service is immense. It has gathered such a position in the

banking sector that people at developed and also developing counties are

very much depended on this service. In Bangladesh credit facilities or loans

started to become very attractive in recent periods. But still lots

improvements in services and facilities have to be made in this department.

BASIC is unique in terms of constitution, its mandate, its objectives its credit

department is very effective. Here, all the employees are very much

cooperative with their customers, colleagues and simply visitors.Through this

the Bank has in the mean time found its own special position in the sector at

the higher rack of the self. BASIC Bank is expected to continue to maintain

strong competitive edge in banking sector in Bangladesh in the years ahead.

Credit management is a dynamic field where a certain standard of long-range

planning is needed to allocate the fund in diverse field and to minimize the

risk and maximizing the return on the invested fund. Continuous supervision,

monitoring and follow-up are highly required for ensuring the timely

repayment and minimizing the default.

Overall, the bank must make a positive attempt to be more outward looking

in their goals and aware of what is happening. They must also emphasize on

the domestic scenario more closely and analyze any certain trends and

strategies of their competitors. The bank must accept any failures and think

of them as an objective to pursue future goals instead of blaming such

failures on other factors.

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