Loan Portfolio Analysis of Eatern Bank Limited (a Comparative Study of Corporate Banking and Sme)D

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1.1 Origin of the Report

As a student of Department of Finance, every student has to conduct a practical orientation i.e., Internship on any organization for fulfilling the requirements of the BBA program. The main purpose of the program is to know the real world situation and to get a glimpse of the corporate culture. In this regard, I have the opportunity to submit the report from my experience while working as an Intern in Corporate Banking Division of Eastern Bank Ltd. Only theoretical knowledge without any practical experience makes a person sterile. On the other hand a person having practical experience but no theoretical exposure keeps him blind. The internship program is designed to overcome such sterile position. This program gives the chance to fulfill the theoretical knowledge that is acquired from class lectures, books, journals etc. in the practical settings. Here, I got an opportunity to realize the relevance and usefulness of the classroom learning and day to day operational experience in EBL Corporate Banking.

1.2 Objectives of the Study:

There are several objectives for conducting this study. These are as follows: ➢ To analyze the loan portfolio with industry exposure, both in Corporate & SME Banking. ➢ To find out the performance of different products & in different sectors. ➢ To investigate Credit Transaction and Loan Approval & Disbursement process. ➢ To briefly compare the Corporate Banking loan portfolio with that of Small & Medium Enterprise. ➢ To identify some of the shortcomings of both SME Banking & Corporate Banking loan portfolio performance. ➢ To come up with suggestion in order to improve performance of SME banking & Corporate Banking.

1.3 Methodology:
Several analytical tools (Comparative Study, industry analysis, pivot table etc.) have been used to analyze the major findings as well as to recommend suggestions for improving the performance of SME Banking & Corporate Banking in Eastern Bank Ltd. The data has been collected from different departments of EBL i.e., Finance department, Credit Risk Management department, SME Banking Division & Corporate Banking Division.

1.3.1 Research Design: This is an analytical research where in Corporate Banking the industry exposure for all performance of loan portfolio is analyzed. I have performed also a comparative analysis between SME Banking & Corporate Banking of Eastern Bank Ltd & I have used the Pivot table to analyze this. 1.3.1 Procedure of Analysis: I have analyzed the loan portfolio of Corporate & SME Banking with the sector-wise & product-wise dimensions. My area of analysis is the funded outstanding, non-funded outstanding, past dues, classified, rescheduled loans and have found the effectiveness & lacking of particular sectors & products.

1.3.2 Sources of Data: To conduct the research study, I collected data mainly from secondary sources. The secondary data has been collected from Business Objective report ( a central MIS database software of EBL), Monthly Financial Deck from Finance department, Internal Publications of EBL SME Banking & Corporate Banking, EBL Annual Report 2009 and website of Eastern Bank Ltd. This secondary information was used in comparative analysis between SME Banking & Corporate Banking of Eastern Bank Ltd.

1.4 Scope of the Study:

This study has significant scope to contribute to consumer banking of Eastern Bank Ltd. These are as follows:

➢ Better understanding of the behavior and patterns of credits in SME Banking & Corporate Banking. ➢ Better knowledge about the loan approval, disbursement & monitoring. ➢ Evaluating the procedure of borrower selection.

➢ Identifying the deficiency areas of both SME Banking Division & Corporate Banking Division. ➢ Finding out the solutions for improvement to make the bank of choice.

1.5 Limitations of the Study:
The study has a few limitations which...
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