...When Bangladesh came into existence on the 16th December, 1971, the banking sector of Bangladesh was in a total disarray. With the exception of two local banks incorporated in then East Pakistan, all the bigger local banks became in operational. Starting with such a humble condition, the Banking Sector of Bangladesh has grown to a great extent. The banking industry in Bangladesh has flourished over the years, making double-digit profit percentages, sustaining growth and surviving cut-throat competition while providing attractive returns to shareholders. The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs). Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 12 foreign banks, Standard Chartered has become the largest in the country. The number of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent (2,412) are located in the urban areas and 60.05 per cent (3,626) in the rural areas. Of the branches NCBs hold 3,616, private commercial banks 1,214, foreign banks 31 and specialized banks 1,177. [pic] Janata Bank is a state-owned commercial bank of Bangladesh established in 1971. Its headquarter is situated at Motijheel in Dhaka, the capital city of Bangladesh. Immediately after the emergence of Bangladesh...
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...On Evaluation of Small & Medium Enterprises (SME) Business Presented to Mr.Deepak Pothan (Vice President – Institutional Banking Group, Development Bank of Singapore (DBS), Bangalore) Presented by Aditya Shetty Roll No. 258 MBA-Core Div C NMIMS 03-June-2011 Preface This project report has been prepared as part of the Summer Internship Program of the MBA-Core course curriculum at Narsee Monjee Institute of Management Studies (NMIMS), Mumbai. This is in partial fulfilment of the requirements of the MBA programme. The report focuses on the Small and Medium Enterprises (SME) segment of borrowers. SME market is the growing and upcoming sector in the banking industry. This encourages entrepreneurs to develop their company from small sized to the future big corporate. The basic aim of the project is an understanding of the SME market in Bangalore and designing a strategy for Development Bank of Singapore (DBS) to enter this segment. This subject was chosen since the subject is a new& developing field for the foreign banks and private banks. SME products help in understanding the various funding & non funding based lending mechanisms. This project will help me understand various means of understanding the various lending mechanisms used by banks. This understanding of SME business will help in the future to know more about the banking industry. Bangalore Aditya Shetty 03-June-2011 Acknowledgement I am thankful to Development Bank...
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...chapter 1 introduction 1.1 overview of the industry Banking means accepting the deposits from the customers for lending to the needy and extending the other services as to issue of DD etc. Nowadays after introduction of private sector banks the banks have become a profit centre and the functions become changed and now banks are doing the insurance and mutual funds also. But nationalised banks are still service oriented in extending loans for Education loan, and rural development activities. A Bank is an organization which lends money to the borrowers for a purposeful task, and provides a facility to deposit and withdraw money when needed and charge for it. HISTORY OF BANKING IN INDIA Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very...
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...conventional Bank. It’s a modern, dynamic private commercial bank & plays a constructive role in the economic development of the country. Prime bank is the first private bank to introduce lease finance, Hire purchase & customer credit schemes along with Islamic banking services in the banking sector in order to bring about qualitative changes in the lives of people of Bangladesh. PBL through its steady progress & continuous success has, now earned the reputation of being one of the leading private sector Banks of the country. The bank offers all kind of Commercial corporate and Personal banking service covering all segment of society within the framework of Banking Company Act, rules and regulation laid down by our central bank. Prime Bank Ltd. is determined to explore the different ways to accommodate with the needs of its clients. One of these ways includes Foreign Exchange Operation and transactions which offer customers a medium of doing business globally with minimum risk associated. Prime Bank Ltd. has already made significant progress within a very short period of its way of life. Vision: Every Company has their own vision. By fixing vision, they can set their future growth. Prime Bank Ltd. has its own vision to be leader in the banking industry. “To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management &...
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...a great pleasure for me to put on records my appreciation and gratitude towards Mrs. Vandana Bharti (A.H.O.D. of M.B.A. Department) for his encouragement towards preparation of this report. I would like to express my deep sense of gratitude to prof. Preeti singh for giving me valuable suggestion and encouragement. I offer heart felt thank to my Parents, Brothers and all my friends for their moral support and inspiration Shilpa Senger Contents INTRODUCTION 5 Objective: 6 Project Intention: 6 EMERGENCE OF EBANKING 6 DEFINATION OF E –BANKING: 6 CHARECTERISTIC OF E- BANKING: 7 COMMON E- BANKING SERVICE 7 Potential areas where e-Banking can be used :- 8 E- BANKING...
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...Q1 Describe the role of Financial Institutions. What are the various types of Financial Institutions active in the Indian Financial system ? ANS: Financial sector plays an indispensable role in the overall development of a country. The most important constituent of this sector is the financial institutions, which act as a conduit for the transfer of resources from net savers to net borrowers, that is, from those who spend less than their earnings to those who spend more than their earnings. Financial Institution is not a new concept in financial history. The evolution of financial institutions must be differentiated from economic history and history of money. In Europe, it may have started with the first commodity exchange, the Bruges Bourse in 1309 and the first financiers and banks in the 1400-1600s in central and Western Europe. The first global financiers the Fuggers (1487) in Germany; the first stock company in England (Russia Company 1553); the first foreign exchange market; the first stock exchange. In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries. Most financial institutions are highly regulated by government bodies. Broadly speaking, there are three major types of financial institution. 1. Deposit-taking institutions that accept and manage deposits and make loans ...
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...market intermediaries. Thus, these financial institutions, such as banks, have a positive role in financing and investment which is a multidimensional process involving the complexity of many interrelated and interdependent factors of diversified nature. It is difficult to assess the contribution of each factor independently. The key to successful banking lays in the ability of balance many activities simultaneously. The bank must maintain a healthy growth rate, while at the same time it must take action to minimize the risks it faces. The bank must also maintain enough cash on hand to meet obligations. All of these are related to sound performance of a bank. Evaluating Bank Performance, examines the basic risk and return features of commercial banks. The financial performance evaluation demonstrates the strengths and weaknesses of bank performance over time. The Trust Bank Ltd. has a responsibility to ensure efficient and effective banking operation in a sound manner. The study will look at the amount of liquidity that TBL has available to meet any reasonable demands that might have to meet, how it manages general banking, Credit department and Foreign exchange Operation, what is the position in terms of profitability and how the bank...
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...Background of the Study The development and improvement of trade routes depend on the development of banking industry. Banking sector occupies an important role in the nation’s economy because of its intermediary’s role. It plays a vital role in the economic development of a country and forms the core of money market of any country. In developing country like Bangladesh the banking sector as a whole has an important to play in the progress of economic development. Hence the schools, colleges and universities are giving emphasis on the applied part of banking education. This report is originated as the academic requirement of the BBA program under the Business Administration Department of DHAKA CITY COLLEGE. Under this program student have to participate in internship program of three month duration toward the fulfillment of the Degree. As practical orientation is an integral part of the BBA degree requirement, I was sent by the department to AB Bank Limited to take real life exposure of the activities of financial institutions. The Human Resource Division of ABBL arranges my internship program at Islampur Branch from December 26, 2010 to March 26, 2011. At the end of the internship period the student have to prepare a report on the organization and this report titled “Loans & Advances and SME sector of AB Bank Limited” is the outcome of my three months practical knowledge at AB Bank Limited. Rationale of the Study Theoretical knowledge is not enough for a student. There...
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...bManual on Financial and Banking Statistics LIST OF ABBREVIATIONS ACF AD ADB ADR AFS AGM AIRCSC Auto-Correlation Function Authorized Dealer Asian Development Bank American Depository Receipt Annual Financial Statement Annual General Meeting All India Rural Credit Survey Committee Additive Outliers Auto Regression Auto-Regressive Integrated Moving Average Available For Sale CBS CC CD CD Ratio CDBS CF CFRA CGRA CII CO CP Consolidated Banking Statistics Cash Credit Certificate of Deposit Credit Deposit Ratio Committee of Direction on Banking Statistics Company Finance Combined Finance and Revenue Accounts Currency and Gold Revaluation Account Confederation of Indian Industries Capital Outlay Commercial Paper Consumer Price Index Consumer Price Index for Industrial Workers Capital Receipts Capital to Risk Weighted Asset Ratio Cash Reserve Ratio Council of Scientific and Industrial Research Central Statistical Organisation Central Vigilance Commission Development Action Plan Department of Banking Operations and Development Department of Banking Supervision, RBI Department of Company Affairs, (Now known as Ministry of Companies Affairs, MCA) Government of India AO AR ARIMA AFS CPI ASSOCHAM Associated Chambers of Commerce and Industry of India ATM ATM BIS BOI BoP BPM5 Asynchronous Transfer Mode Automated Teller Machine Bank for International Settlements Bank of India Balance of Payments Balance of Payments Manual, 5th edition Balance of Payments Division, DESACS...
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...Institutions comprise Banking System and Non-bank Financial Intermediaries. The Financial Market in Malaysia comprises four major markets namely: Money & Foreign Exchange Market, Capital Market, Derivatives Market, and Offshore Market. Chart 1: The Financial System Structure in Malaysia Financial System Financial Institutions Banking System Non-Bank Financial 1. Bank Negara Malaysia Intermediaries 2. Banking Institutions 1. Provident and Pension • Commercial Banks Funds • Finance Companies 2. Insurance Companies • Merchant Banks (including Takaful) • Islamic Banks 3. Development Finance 3. Others Institutions 4. Savings Institutions Financial Market Money & Foreign Exchange Market 1. Money Market 2. Foreign Exchange Market Capital Market 1. Equity Market • Discount Houses • Representative Offices of Foreign Banks • National Savings Bank • Co-operative Societies 5. Others • Unit Trusts • Pilgrims Fund Board • Housing Credit Institutions • Cagamas Berhad • Credit Guarantee Corporation ...
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...REPORT ON CREDIT OPERATIONS SYSTEM IN THE PRIME BANK LIMITED PREPARED FOR M. MUZAHIDUL ISLAM ASSOCIATE PROFESSOR DEPARTMENT OF BANKING UNIVERSITY OF DHAKA PREPARED BY NIPA SAHA ROLL-423, MBA 1ST BATCH DATE OF SUBMISSION: MAY 10, 2006 DEPARTMENT OF BANKING UNIVERSITY OF DHAKA Supervisor's Certificate This is to certify that the Internship Report on "Prime Bank Ltd." in the bona fide record at the report is done by Nipa Saha as a partial fulfillment of the requirement of Masters of Business Administration (MBA) degree from the Department of Banking, University of Dhaka. -------------------------------------- Signature of Supervisor ---------------------------------- Date. Declaration I do hereby solemnly declare that the work presented in this Internship Report has been carried out by me has not been previously submitted to any other University/ College/ Organization for an academic qualification / Certificate / Diploma or degree. The work I have presented does not breach any existing copyright and no portion of this report is copied from any work done earlier for a degree or otherwise. I, further undertake to indemnity the department against any loss or damage arising from breach of foregoing obligation. -----------------------------------...
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...2010 A Grand Project Report on Credit Risk Management at State Bank of Mysore N. R. Institute of Business Management 23/3/2010 A Grand Project Report on Credit Risk Management at State Bank of Mysore N. R. Institu of Business Manag itute agement A Grand Project Report on rand Credit Risk Manag anagement at State Bank of M k Mysore (IN PARTIAL FULFILLMENT OF PROJECT STUDY COURSE, IN TWO YEARS FULL TIME LMENT O WO YEAR MASTER OF BUSINESS ADMIN SS ADMINISTRATION PROGRAMME OF GUJARAT U UJARAT UNIVERSITY) Submitted To: Prof. Dharmesh Shah hah (Asst. Professor, NRIBM) Submitted By: Subm Sandip A. Makwa (08056) akwana Luv D. Palk (08064) . Palkar Prof. Viral Pandya (Asst. Professor, NRIBM) (Batch: 2008-10) N. R. Institu of Business Management nstitute ent CERTIFICATE This is to certify that Mr. Sa ndip A. Makwa wana (08056) and Mr. Luv D. Palk alkar (08064 ) students of N.R.Institute of Business Management has successf te essfully completed their grand project on “Credit Risk Management at State Bank of Mysore” “Credit Mysore” Ba in partial fulfillment o two years Master of Business Administration of s A Programme of Gujarat University. This is their original wor and has not t U work been submitted elsewhere ere. _________________________ Dr. Hitesh Ruparel Director In-charge, NRIBM _____________________________ Prof. Dharmesh Shah Asst. Professor, NRIBM & Internal Project Guide ______________ _______________________ Prof. Vir Pandya...
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...Malaysian Financial System Content Outline 1. The Banking System ............................................................................. 1-2 2. The Functions and Responsibilities of Monetary and Non-Monetary Institutions ............................................................................................. 1-6 3. The Functions and Responsibilities of Non-Bank Financial Intermediaries...................................................................................... 1-16 4. Other Institutions / Bodies.................................................................. 1-30 5. Summary and Conclusion .................................................................. 1-34 Practice Questions ...................................................................................... 1-35 Learning Objectives What you should achieve after completing this chapter: • Understand the importance of the Malaysian financial system; • Be able to apply the relevant statutory and regulatory provisions governing the Malaysian banking system; • Appreciate the functions and responsibilities of monetary and non-monetary institutions, together with non-bank financial intermediaries; • Gain knowledge of the role of Bank Negara Malaysia; and • Understand the scope of the regulatory framework within the Malaysian financial system. © Institut Bank-Bank Malaysia 1-2 CCP-FSPC The Malaysian Financial System 1. 1.1 The Banking System Brief history of the Malaysian financial...
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...enterprise risks can be broadly categorized as Credit Risk, Operational Risk, Market Risk and Other Risk. Credit risk is the possibility that a borrower or counter party will fail to meet agreed obligations. Thus managing credit risk for efficient management of a Financial Institution has gradually become the most crucial task. Credit risk management needs to be a robust process that enables Financial Institution s to proactively manage facility portfolios in order to minimize losses and earn an acceptable level of return for shareholders. Credit risk is most simply defined as the potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms. The goal of credit risk management is to maximize a bank's risk-adjusted rate of return by maintaining credit risk exposure within acceptable parameters. Banks need to manage the credit risk inherent in the entire portfolio as well as the risk in individual credits or transactions. Banks should also consider the relationships between credit risk and other risks. The effective management of credit risk is a critical component of a comprehensive approach to risk management and essential to the long-term success of any banking organization. Prime Bank primarily lends for trade finance although some amount of project financing is also undertaken. The bank has generally maintained a conservative approach towards lending and management claims that their credit appraisal process is more stringent than...
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...INTERNSHIP REPORT ON CREDIT RISK MANAGEMENT OF DHAKA BANK LIMTED [pic] EXCELLENCE IN BANKING DEPARTMENT OF FINANCE & BANKING UNIVERSITY OF CHITTAGONG CHITTAGONG. CREDIT RISK MANAGEMENT OF Preface The banking sector of Bangladesh is dominated by commercial banks with huge debt burdens. Inefficiency in loan sanctioning, expansion of preferential loans, and poor classification and administration of loans has led to the slow recovery of credit extended by the banks. To restore efficiency and accountability in this sector, an effective credit risk management system is necessary. To manage credit risk efficiently Bangladesh Bank has provided a guideline for CRM. Besides, Basel Committee on Banking Supervision has set a guideline on Sound credit risk assessment and valuation for loan in order to encourage banking supervisors globally to promote sound practices for managing credit risk. This paper presents a comparative picture of credit risk management of Dhaka Bank Limited with Bangladesh Bank’s guidelines and Basel Committee for Banking Supervision’s (BCBS) guideline regarding Credit Risk Management. This report also provides an overview of the Credit Risk Management of DBL. In this report DBL’s credit risk management system is analyzed into three sections. First of all the policy guidelines have been analyzed and compared with Bangladesh bank’s guideline. After that the organizational structure & responsibilities have been analyzed...
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