Bank is the lifeblood of an economy to keep the wheels moving forward and to play the pivotal role in the economic development of the country. The present economic state of Bangladesh demands immediate development of the financial institutions. Banking sector has lot of areas to improve upon. One of the measures to improve this condition is to introduce tailor made professional programs that are designed to develop the managerial efficiency. As fulfillment of the BBA program well arranged by Department of Accounting & Information Systems, Faculty of Business Studies, University of Dhaka I had to undergo a three months internship program which is a practical orientation stage and will definitely guide to employ the potentials to build up a successful professional career. After participating in the internship program conducted on AB Bank Limited I am assigned to submit a report on “Loan Sanction, Classification and Recovery Processes of AB Bank Ltd. “ The report helps significantly to build a perception about day to day affairs of the bank. This report attempts to describe the functions of a branch of commercial bank and some recommendation for improvement and efficiency of some of those functions. The prime objective of the study is to find out empirically how a commercial bank carries out the functions of Credit Management.
1.2 ORIGIN OF THE REPORT
The report is an attempt to provide an orientation to real life scenario in which one can observe and evaluate the use and applicability of theoretical concepts that were taught in BBA program. During the internship program, I was assigned to AB Bank Limited (ABBL), Loans & Advance department at Rokeya Sharani Branch, Dhaka to observe practical applications of my theoretical knowledge. Finally a report with proper analysis and possible solution of the organization needs to be submitted to Assistant Professor Rumana Ahmed, supervisor of internship program, University of Dhaka. 1.3 BACKGROUND OF THE STUDY
Academic knowledge is far away from the practical knowledge. It is quite impossible practice all the academic assets in the venality. Sometimes institution is very much effective for managerial decision and also to continue with the ongoing global business trend rather than theoretical aspects, which are learnt in the institutions. On the other hand as the world is becoming abridged with the passes of time due to alarming innovation of modem technology and at the same time people are getting radically danged for sociality and business reasons, it is quit impossible to deal with day-to-day transaction without the extending help of banking sector.
Bank plays an important role in the business sectors and in the industrialization of a country. Basically the banks take deposits from the customers against interest and lend it to borrowers against interest for a cessation period. Under these circumstances of bank offers different interest rates and other options are very common among all the banks, but only the customer services and other facilities vary from bank to bank. In our country there are 4 types of bank there are central bank, nationalized bank, private commercial bank (Islamic and traditional) and foreign commercial bank (Islamic and traditional). Here we make an assessment on the general banking and credit work of a nationalized commercial bank called National Bank Limited and lastly a regression line has been developed along with correlation to have an objected oriented output in future. 1.4 RATIONAL OF THE STUDY
Due to the increased competition of the increased number of the commercial banks and the growing economy the expectations of the customers have also increased than ever before. Realizing the present condition banks specially the commercial banks are trying to elevate their loan giving service as much as reachable they can to their protective and potential customers. , the most serious difficulty facing the financial...