Loan Diversification System of Janata Bank
Loan diversification system of Janata bank, Rajshahi.
Abstract
The study is mainly designed to know the different credit programme of Janata Bank and to know its performance. There are many institutions which play a vital role for charging the social structure and for the economic development for our country. Janata bank is one of the most important financial institutions of them.
It is playing a vital role for economic development and employment generation by its different credit programme. As a banking financial institution it provides different loan & advances (with micro credit) to poverty alleviation and income generation. It provides different loan for development of our agricultural and for development of rural area. It has different rural credit programmes. For business man it provides cash credit (Hypo), and cash credit (Pledge) loan. For development of industry Janata Bank provides different loan and advances. The major credit programme of Janata bank are business loan (cash, credit), Agricultural loan (crops loan), Palli loan, General loan, Secured overdraft, weavers cash credit, clean loan, SHBL, Packing credit, Loan against important merchandise (LIM), General House Building Loan (GHBL), Small cottage, Handicraft loan etc. every year it is introducing new credit programme. Although Janata bank provides loan and advances in different sector but its total classification loan is more than 12% (2005). But now it is decreasing at 5.6% in 2011.The bank has cumulatively created specific provision of Tk8, 175 million as on 31 December 2011 against classified loans of Tk14, 343 million. Accordingly the bank has been rated by Credit Rating Information and Services ltd.(CRISL). The CRISL assigned A+ rating (meaning adequate safety) in the long term and ST2 rating (means high grade) in the short term. Capital adequacy is 10.20% and earnings per share Tk60.45 in -2011. Despite the global financial crisis and downturn in its economy, the bank earned
Abstract
The study is mainly designed to know the different credit programme of Janata Bank and to know its performance. There are many institutions which play a vital role for charging the social structure and for the economic development for our country. Janata bank is one of the most important financial institutions of them.
It is playing a vital role for economic development and employment generation by its different credit programme. As a banking financial institution it provides different loan & advances (with micro credit) to poverty alleviation and income generation. It provides different loan for development of our agricultural and for development of rural area. It has different rural credit programmes. For business man it provides cash credit (Hypo), and cash credit (Pledge) loan. For development of industry Janata Bank provides different loan and advances. The major credit programme of Janata bank are business loan (cash, credit), Agricultural loan (crops loan), Palli loan, General loan, Secured overdraft, weavers cash credit, clean loan, SHBL, Packing credit, Loan against important merchandise (LIM), General House Building Loan (GHBL), Small cottage, Handicraft loan etc. every year it is introducing new credit programme. Although Janata bank provides loan and advances in different sector but its total classification loan is more than 12% (2005). But now it is decreasing at 5.6% in 2011.The bank has cumulatively created specific provision of Tk8, 175 million as on 31 December 2011 against classified loans of Tk14, 343 million. Accordingly the bank has been rated by Credit Rating Information and Services ltd.(CRISL). The CRISL assigned A+ rating (meaning adequate safety) in the long term and ST2 rating (means high grade) in the short term. Capital adequacy is 10.20% and earnings per share Tk60.45 in -2011. Despite the global financial crisis and downturn in its economy, the bank earned