There are number of commercial banks operating their activities in Bangladesh. The BRAC Bank Limited is a promising one among them. It has a vast contribution in the economic development of the country. In the years ahead BRAC Bank expects to introduce many more services and products as well as add a wider network of SME unit offices, Retail Branches and ATMs across the country.
The bank promotes broad-based participation in the Bangladesh economy through the provision of high quality and modern banking services. SME loan is one of such quality product through which they offer the small and medium entrepreneurs a quality banking services and earn the maximum profit as well. In our country commercial banks usually provides bigger amount of loans to larger industries and trading organizations but the small and medium entrepreneurs were overlooked. With this end in view-BRAC Bank was opened to serve these missing middle group that are small but striving entrepreneurs. As a socially responsible bank, BRAC Bank wants to see the emancipation of grass-roots level to their economic height and also to make profit by serving the interest of missing middle groups. In the analysis of this report it is found that they have some lacking in the banking operation. If they can overcome those lacking they will stabilize themselves as a leader in this industry and will be a unique organization.
1.1 Origin of the Report
As a part of the Internship BBA program of Mohammadpur Kendriya College, Dhaka Bangladesh requirement, I was assigned for doing my internship in The BRAC Bank Limited (BBL) for the period of 12 weeks starting from May 2010 to July 2010. In BBL I was assigned in the Loan Administration Division for first six weeks and remaining six weeks in Credit Division of the head office, Gulshan. My organizational supervisor was Mr. Shah Alam Bhuyan, FAVP & Head of Loan Administration. My project is ‘Analysis of SME loan in BRAC Bank Limited’ which was assigned by organizational supervisor of the said bank. My faculty supervisor Mr. Abu Zahid Md. Zoglul Pasha,chairman,Department of Business Administration,Mohammadpur Kendriya College, Dhaka, also approved the project and authorized me to prepare this report.
1.2 Background of the study
Banking Industry is one of the most promising industries of our country. The importance of the sector revealed through its contribution in the economic growth of the country. This sector accelerates economic growth through mobilizing funds from surplus unit to the deficit unit. Banking Industry is moving towards rapid changes due to technological innovation and diversified needs of its customers.
Through this report an individual can expect to have a good knowledge and understanding on the various methods of operation performed by BRAC Bank Limited particularly in the area of Financial Institutional Services. From the last three months of the bank’s disbursement, everything is tried to include in precise form. I have tried my level best to put more emphasis on the SME loan since it was the topic of my internship program. This report is to be used only for the academic purpose. I have collected all the necessary and relevant data from various primary, secondary and tertiary sources. After three months long hard labor, it has become possible for me to make the report comprehensive and factual.
1.3 Objective of the study
• To find out basic appraisal of SME loan
• To know the enterprise selection criteria to provide SME loan • To know the terms and conditions of SME loans
• To know the work process and monitoring system of Asset operation Department • To access the key performance indicator of the department • To know how the SME loan borrowers would behave in repaying their loan. • To know whether SME loan borrowers are dully paying...