1.1. Origin of the report
As a part of the Internship Program of Bachelors of Business Administration course requirement, I was assigned to do my internship at Bangladesh Small Industries and Commerce Bank Limited popularly known as BASIC Bank Limited for the period of three months starting from December 20, 2006 to March 20, 2007 as an intern by the Internship Placement Committee of Department of Accounting & Information Systems, University of Dhaka. Here at BASIC Bank, I was assigned to work at Loans and advances Division of BASIC Bank, Moulvibazar Branch, Dhaka, Mr.Khan Iqbal Hasan, Assistant General Manager and In-charge, was my supervisor. The title of the report is “Credit Operations and Risk management Practices of BASIC Bank Limited” which was assigned by my supervisor of the said bank. My faculty advisor Md. Dewan Mahboob Hossain, Assistant Professor, Department of Accounting & Information Systems, University of Dhaka, also approved the project and authorized me to prepare this report.
The objectives of the study are as under:
Part A: Organization Part
▪ Exploring various features of BASIC Bank Limited
▪ Analyzing the performance of BASIC Bank Limited
Part B: Project Part
▪ To find out Policy considerations related to Small Scale Project and Micro-credit Operations in BASIC Bank. ▪ Basic Principles of Loans and Advances
▪ Different Type of Credit Facilities of BASIC Bank
▪ Credit appraisal system of BASIC Bank
▪ Finding out the credit Performance and credit risk management system practiced by BASIC. ▪ To analyze the recovery policy and repayment behavior of the scheme.
1.3 Sources of Information:
Information collected to furnish this report is both from primary and secondary sources. This report is mainly based upon secondary sources. The primary sources are:
▪ Practical desk work
▪ Face to face conversation with the officers
▪ Face to face conversation with the clients
▪ Relevant file study as provided by the concerned officer The secondary sources are:
▪ Different Circulars issued by the Head Office and Bangladesh Bank ▪ Different ‘Procedure Manual’ published by BASIC Bank ▪ Annual Reports (2000, 2001, 20002, 2003, 2004 and 2005) of BASIC Bank ▪ Publications obtained from different libraries and from internet (Basel Committee On Banking Supervision, Credit Risk Management Manual of Bangladesh Bank) ▪ Journal published by Faculty of Business Studies.
The study requires a systematic procedure from selection of the topic to final report preparation. To perform the study data sources are to be identified and collected, they are to be classified, analyzed, interpreted and presented in a systematic manner and key points are to be found out. This overall process of methodology is given in the following page in the form of flowchart that has been followed in the study.
A. Selection of the topic: The BASIC BANK official assigned the topic selected for the study. Before assigning the job it was discussed with me so that I can prepare a well-organized internship report. B. Identifying data sources: Essential data sources both primary and secondary are identified which will be needed to complete and workout the study. To meet up the need of data, primary data are used and the study also requires interviewing the officials and staffs where necessary. C. Collection of data: Primary data are collected through 100% physical inspection as there is no provision and scope for using sampling technique. Interviewing is predominantly required to collect the primary data. D. Classification, analysis, interpretation and presentation of data: To classify, analyze, interpret and presentation of data I used some arithmetic and graphical tools to understand them clearly. E. Findings of the study: After scrutinizing the data problems of the study are pointed out and they are shown under...