Chapter - 01
1.1Background of the Study:
SME loan playing a significant role for the development of our economy by creating employment opportunity and producing important alternative machines and machinery parts for saving huge foreign currency for the country. So as a part of the development strategy, we should intensify our efforts to develop this sector to grow industrial base and volume of foreign trade. As we know that in this age of globalization, it is impossible to stop the flow of foreign goods to any country. Only quality products can meet the challenges in global market. For meeting this situation SME loan need to upgrade their technological capabilities and production facilities in order to produce quality products at a competitive price. Therefore as an internee in JBL, Kanchpur Branch, I shall complete my practice session and prepare the report based on my personal experience, observation and acquired practical and theoretical knowledge, As an BBA student I shall try my level best to cover the SME Loan Disbursement and Recovery Procedures of Jamuna Bank Limited in my report. As a part of course structure of the Bachelor of Business Administration(BBA) program of WUB, every student have to conduct an internee program in any organization to acquire practical knowledge after completing vast theoretical courses. The main objective of this program is providing practical knowledge to the concerned student. At the end of the program the concerned student ids suggested to prepare a report on the assigned topic by his/her supervisor. I would have the opportunity to complete my report in a well known private bank which is “Jamuna Bank Limited”. This program helps me to enhance my analytical skills and scholastic aptitudes. During my internee period I got the opportunity to work in credit and loan department and I would have the interest to prepare my internee report on “SME Loan Disbursement and Recovery Performance: A Case Study of Jamuna Bank Limited”. 1.02 Objective of the Study:
The objective of the study is:
To analyze SME Loan Disbursement Procedures and Recovery Performance of Jamuna Bank Limited 1.03 Methodology of the Study:
Methodology includes direct observation, face-to-face discussion with employees of different departments, study of files, circulars and practical works. This study includes both quantitative and qualitative data of 2008-2012. However, this report is basically qualitative in nature. In all the cases depending on the requirements data have been collected from both the primary and secondary source. Source of Data: This report is based on both primary and secondary source of information. The Primary Sources:
Direct conversation with the clients.
Face to face conversation with respective department officers. The Secondary Sources:
Annual Report 2008-12 of Jamuna Bank Ltd.
Website of Jamuna Bank Limited “www.jamunabankbd.com”.
Prudential Guidelines Published by the Bangladesh Bank.
Different publications regarding Banking functions, Operation, and Transactions Policies. Official Documents and File Study.
Different Circulars sent by Head Office of the Jamuna Bank and Bangladesh Bank. 1.04 Rationale of the Study:
The economic and social importance of the SME loan is well recognized everywhere. It is also acknowledged that these sectors in the economy may be under served, especially in terms of Finance. Although there have been numerous schemes and programs in different economic environments, there are a number of distinctive recurring approaches to SME finance. Collateral based lending offered by traditional banks and finance companies is usually made up of a combination of asset based finance, contribution based finance, and factoring based finance, using reliable debtors or contracts. Information based lending usually incorporates financial...
Bibliography: Annual Report (2008-2012) of Jamuna Bank Limited.
Bangladesh Bank Policy of SME Loan.
Khan, A.R. (2009), Bank Management- A Fund Emphasis, 1st edition, Decent Book House, Dhaka.
Madhura, J. (2006), Financial Market and Institution, 7th edition, Thomson, New York, U.S.A.
Macdoland, S. S. (2000), Bank Management, 4th edition, The Dryden Press.
Rose P.S & Hudgins, Sylvia C. (2012), Bank Management & Financial Services, 7th edition, Mc Graw Hill, New York.
Please join StudyMode to read the full document