Internship Report

On
Loan Management of the City Bank Limited

Submitted To
Mohammad Tariq Hasan
Assistant Professor
School of Business & Economics
United International University

Submitted By
Umma Tasmia Usha
ID: 111 141 416
Department of Business Administration
United International University

Date of Submission: 16th September, 2018

 Acknowledgement

As a matter of first importance, I might want to express my thankfulness to Allah for

giving us quality to survive. A warm felicitation goes for me to recognize the general
population, who hold the allure for empowering, applauding, helping and also trusting me
in setting up this provide details regarding Loan Management of CBL on what I have
worked through my internship period. I might want to accept the open door to express
gratitude toward Mohammad Tariq Hasan, Assistant Professor, United International
University who gave me rules, helped in setting up my report. He has upheld me with
source.

The report titled as "Loan Management of the City Bank Limited" has been set up to
satisfy the necessities of Internship at end of BBA program. I am especially lucky that I
have gotten earnest direction, supervision and co-task from different regarded individuals
while setting up this report. I might want to accept the open door to express gratitude
toward Shibly Sadik, RM, and Md. Amin Uddin, RM, The City Bank restricted (Urdu
Road Branch) for being my on location director and giving personal time to time data,
recommendation and in addition methods to work with my subject.

ii
 Letter of Transmittal
16th September, 2018

Mohammad Tariq Hasan

Assistant Professor
School of Business & Economics
United International University

Subject: Submission of Internship Report.

Dear Sir,
With awesome delight, here I present my internship report about Loan Management of
CBL. This report depends on the information and encounters I have picked up amid my
internship period at the CBL. Subsequently, I would be greatly charmed and respected in
the event that you acknowledge my Internship Report and perceive diligent work and
assurance I have assembled in the planning and finish of this report. I have attempted my
best to draw out the first situation of the Loan Management with brimming with viability
and productivity. I might want to thank you for your help, rules and perception of my
works which made it simple for me and in addition gave information of learning in
pragmatic.

I, therefore, Pray and hope that you will consider my report and accept it.
Yours Faithfully,

_______________
Umma Tasmia Usha
ID: 111 141 416
Department of Business Administration
United International University

iii
 Declaration

I am Umma Tasmia Usha, and this is to tell that this report "Loan Management of CBL"
has been set up as a piece of my entry level position. It is a compulsory piece of our BBA
program to present a internship report. I was motivated and upheld by my supervisor
Mohammad Tariq Hasan, Assistant Professor, School of Business & Economics, United
International University.

-----------------------
Umma Tasmia Usha
ID : 111 141 416
Department of Business Administration
United International University

iv
Table of Content

Chapter Topic Page

No.
CHAPTER ONE: INTRODUCTION
1.1 Introduction of Loan Management 2
1.2 The City Bank Limited 3
1.3 Objective of the Study 4
1.4 Rational of the Study 5
1.5 Scope of the Study 5
1.6 Limitation of the Study 5
CHPATER TWO: METHODOLOGY OF THE STUDY
2.1 Research Type 6
2.2 Primary Data Collection 6
2.3 Secondary Data Collection 6
2.4 Data Analysis and Report 7
CHAPTER THREE: ORGANIZATIONAL BACKGROUND AND INDUSTRY
PERSPECTIVE
3.1 Industry Scenario of Bangladesh 8
3.2 Organizational Background 9
3.2.1 Historical Background of CBL 9
3.2.2 Vision 11
3.2.3 Mission 11
3.3 Operation Activities and Products and Services 12
3.4 Credit Management System of CBL 14
3.4.1 Credit Management of CBL 14
3.4.2 Credit Policy of CBL 15
3.4.3 Loan Proceeding 16
3.4.4 Types of Loan 18

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3.4.4.1 Retail Loan 18
3.4.4.2 SME Loan 23
3.4.5 Default loan Precision 27
3.5 SOWT Analysis 28
CHAPTER FOUR: FINDINGS AND ANALYSIS OF THE STUDY
4.1 Findings of the Study 29
4.2 Analysis of the Study 30
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS
5.1 Recommendations 31
5.2 Conclusion 33
CHAPTER SIX: APPENDIX
6.1 Reference 34

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 Executive Summary

The report is begun with my internship program which I have done as a prerequisite of
BBA program .This report is finished in light of my three months entry level position in
The City Bank Limited. This is an introduction report that contains the genuine everyday
working knowledge of various errands in CBL, Urdu Road Branch.

The goal of this investigation is to break down the loan administration and credit strategy
of CBL, money related execution in regards to credit and so on. To set up this report both
essential and optional wellsprings of information have been utilized.

At first, we have the initial part, which have outline about credit administration and CBL.
Than we have the data and experience that I got from my 3 months as an intern. Also,
toward the end we have the Findings, Analysis, Recommendation and Conclusion.

CBL is one of the main private banks in Bangladesh. To serve the country CBL plays out
a few exercises for their customers like general keeping money, advance and propel
capital market activity and so on. Bank gathers money from account deposit and gives it
to different business or individual as loan. Bank pays interest to store holder and take
interest from borrowers. CBL measure all hazard segments before endorsing a credit. At
the point when every one of the customs finished then individual officer disburse the
credit. After disbursement the credit it is obligation of bank to recuperate the disbursed
loan. This report depends on genuine data and working system rehearsed in CBL. The
general loan administration of CBL has examined to give a spotless thought regarding the
credit item, the strategy of CBL and usage of that approach by different component and
process.

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 List of Acronyms

CBL The City Bank Limited

BB Bangladesh Bank
L/C Letter of Credit
TIN Tax Identification Number
ETIN Electronic Tax Identification Number
SME Small and Medium-sized Enterprises
ATM Automated Teller Machine
FDR Fixed Deposit Receipt
NBFIs Non Banking Financial Institution
NID National Identity card
A/C Account
IT Information Technology
RJSC Registrar of Joint Stock Companies
RM Relationship Manager
CEO Chief Executive Officer
GAD General Administration Department
PWC Price Waterhouse Coopers
IRC Import Registration Certificate
ADC Alternative Delivery Channel
IFC International Finance Corporation
SCBs Scheduled Commercial Banks
B2B Business to business
BPR Business Process Reengineering
CPM Credit Policy Manual
TK Taka, Bangladeshi Currency
US $ Dollar, United States Currency

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 CHAPTER 1
INTRODUCTION

1.1 Introduction of Loan Management

A most grounded keeping money industry is critical in each nation and can have a
noteworthy effect in supporting monetary advancement through proficient budgetary
administrations. Managing an account division assume an essential part in development
and advancement of Bangladesh's economy. Also, in bank credit is a vital part, since it is
the fundamental wellspring of benefit. Along these lines, credit administration is
important for bank to make more benefit.

Credit Risk is the hazard that has negative effect on the budgetary outcomes. Hazard is
constantly connected with banks and going out on a limb is vital piece of saving money
activity. The point of the credit chance administration is to keep up credit hazard
presentation. For this, banks need to deal with the whole portfolio.

Credit risk displaying is essential for banks since it causes them to enhance their business
and in the meantime serve clients better. Credit risk alludes to the likelihood of a
borrower to reimburse advances and deciding the probability of the individual to fizzle an
installment, in which case the bank brings about a misfortune. Assume a man needs to
acquire cash from a bank. The bank will break down the monetary history of the
individual and think of a factual number, called credit score, which decides whether the
individual is qualified for the advance or not.

Inferable from the worldwide monetary emergency and credit crunch, banks need to
lessen their advance misfortunes, and henceforth credit hazard administration has turned
into the focal point of center in managing an account exercises. As a cash related
foundation, Banks are exceedingly secure all things considered. In our step by step
dealing with a record practices association people are set out to give each kind of security
matter from specialist to customer dependability. There are such a noteworthy number of

2
security textures from Bangladesh Bank under the exhibit of money related foundation
and general dealing with a record. In each and every activities of business Banks
Bangladesh Bank has drive distinctive administer and checked those consistence
purposely by the audit board watching.

1.2 The City Bank Limited

The City Bank Limited is one of the notable and extensive banks in Bangladesh. It is a
standout amongst the most settled private Commercial Banks working in Bangladesh. It
is a best bank among the most prepared five Commercial Banks in the country which
started their undertakings in 1983. The Bank started its experience on 27th March 1983
through opening its first branch at B. B. Street Branch in the capital, Dhaka city. It was
the visionary venture of around 13 neighborhood specialists who vanquished the
enormous vulnerabilities and perils with courage and vitality that made the establishment
and forward stroll of the bank possible. Those help boss began the outing with just Taka
3.4 crore worth of Capital, which by and by is a respectable Taka 2311.78 crore as capital
and spare.

City Bank is among the particular couple of close-by banks which don't take after the
customary, decentralized, topographically supervised, branch based business or profit
model. Instead the bank manages its business and action vertically from the head office
through 5 specific Units particularly

a) Business Unit
b) Branch Banking
c) Risk Unit
d) Operations Unit
e) Support

Under a continuous online dealing with a record organize, these 5 specific Units are
supported at the back by a solid organization transport or operational setup and moreover

3
a splendid IT Backbone. Such brought together business divide based business and
working model certification particular treatment and organizations to the bank's assorted
customer areas.

The bank by and by has mean 120 branches which joins 99 online branches, 1 verifiable
Islamic Banking branch, 1 SME advantage center and 11 SME/Agri branches spread over
the length and breadth of the country. Other than these customary movement centers, the
bank is moreover to a great degree dynamic in the elective transport zone. It right
presently has 311 ATMs of its own; and ATM giving strategy to assistant banks that has
more than 1150 ATMs set up; SMS Banking; Internet Banking and so forth. It starting at
now started its Customer Call Center action.

1.3 Objectives of the Study

As an intern of CBL and doing entry level position it’s extremely awesome experience, I
picked this theme on the grounds that here I drew in with this sort of work and what I am
seeing here is really extraordinary. In this way my reset is growing up to set up a task on
it. And furthermore illuminating to others that when a man enters in the premises and
leave from that premises how he or she been observed each minute. Furthermore, my
goal likewise is to discover the data given underneath:
a) To comprehend the loaning method of CBL. To know the different interest rate for
various classes of loan as well as what sorts of securities are taken against various size of
advances.
b) To know the terms and states of credit administration of CBL.
c) To uncovered the situation of CBL credit Division in the brain of their standard
customers.
d) To break down the work procedure and observing arrangement of credit office.
e) To make a few suggestions for the effective Credit Operations of CBL.

4
1.4 Rational of the Study

Credit risk is a standout amongst the most imperative dangers for any commercial bank.
Credit chance rises up out of non execution by a borrower. It may rise up out of either a
disappointment or an unwillingness to perform in the pre-obligation contracted way. The
credit threat of a bank is also affect the book estimation of a bank. The more credit of a
particular is in possibility, the more prominent probability of a bank to be wiped out. In
this way, the status of investor in the bank is in danger and likelihood of bringing about
misfortune from their kept esteem. That is the reason; I am intrigued to set up the give an
account of the premise of Credit Risk Management Practices of the Commercial Banks in
Bangladesh.

1.5 Scope of the Study

The study would center on the accompanying zones of CBL Credit administration
arrangement of CBL, Procedure for various credit facilities, and Portfolio (Loan or
advances) administration of CBL, Organization structures and obligations of
administration. But my scope was the information I get from RM officers in the branch.

1.6 Limitations of the Study

In time of study I need to confront some confinement likewise if there should arise an
occurrence of gathering information. Those constraints are given beneath:
a) Anything, which will antagonistically influence the picture of the bank, couldn't be
uncovered.
b) CBL is a private bank and they are traditionalist about their database an outcome it
was impractical for the answer to get every one of the information required.
c) Sometimes the authorities had been not able give data on account of their enormous
routine work.

5
 CHAPTER 2
METHODOLOGY OF THE STUDY

Approach of the study considers, theoretical examination of the procedures associated

with a field of any examination. It contains the speculative examination of the gathering
of methodologies and principles related with a branch of data. Typically, it incorporates
thoughts, for instance, perspective, theoretical model, stages and quantitative or
emotional procedures. Here system is associated full effectively.

2.1 Research Type:

This is a Descriptive Research, which briefly uncovers the general exercises of CBL and
furthermore fundamentally examines the "Loan Management" of this bank. To set up this
report all the fundamental data gathered from both essential and auxiliary wellsprings of
information.

2.2 Primary Data Collection:

= Interviews with RM Officer.

= Observation.
= On the job trainings.
= Practical working experiences.

2.3 Secondary Data Collection:

= Annual Report of the City Bank Limited.

= News articles of Security issues.
= Website of The City Bank Limited.
= Different website information
= Related news articles

6
2.4 Data Analysis and Reporting:

Both the qualitative analysis (interview) and quantitative analysis (annual report )have
been utilized to gather and dissect the assembled information.

7
 CHAPTER 3
ORGANIZATIONAL BACKGROUND AND
INDUSTRY PERSPECTIVE

3.1 Industry Scenario of Bangladesh

The Bangladesh Bank began receiving measures for putting saving money foundations on
right track Yet the dominance of open segment administration of banks left some
negative impacts In the currency advertise specifically and the economy when all is said
in done The deftness among the borrowers controls the managing an account part all in
all. Essentially, a default culture, among different impacts, showed up on the scene.

There are 48 (forty eight) banks in Bangladesh. The opening of private and remote
members to the managing an account area was Intended to acquire alluring outcomes
from saving money. The approval of private banks was intended to make rivalry among
the banks and rivalry as proficiency inside and the profitability In undertakings financed
by banks. Lamentably, for the general population, everywhere, keeping money segment
is yet to get the kudos for proficiency, believability and development.

The shrewd, among the client of keeping money administrations, have influenced the
administration of banks, for acquiring here and now and long haul credits. They here and
there indicated expanded value to get cash for Investment in organizations and industry.
Hardly any redirected their credit cash to purposes not the same as the advance
proposition, and Invested In non productive units have neglected to reimburse their
advances to the banks. Hence new business visionaries are not getting capital while
defaulting business visionaries have begun acquiring either alleviation in the type of
rescheduling of the reimbursement program or extra inescapable cash for enhanced units.

Be that as it may, now, the circumstance is changing step by step, Bangladesh Bank is
taking more activity for diminishing the terrible credit. The banks' are likewise taking
savvy strategies and choice to lessen the awful advance and Investing In more anchored

8
put. This is useful for the banks as well as useful for Bangladesh economy, since
Investors are attempting to enhance their business choice and innovating more productive
strategy for success.

3.2 Organization Background

City Bank is a champion among the most settled private Commercial Banks working in
Bangladesh. It is a best bank among the most settled five Commercial Banks in the
country which began their assignments in 1983.As per this CBL General Admin Division
gave all the help to the concern department and all the CBL branches not just in
Bangladesh likewise everywhere throughout the world. CBL is completely mechanized
and centralized bank, subsequently head office needs to work 24 hours in multi day and
30 days in multi month. For checking all the security issues and offering help here in
CBL a unique control room completely operational 24hours of every multi day with 4
security directors and 12 securities individual. Behind the scene there are parts of
mechanized programming additionally in task for smooth and quick help. From the
control room CBL organization can checked every last branch from Syedpur, Nilfapmarti
to Cox Bazar, Chittagong alongside 5 diverse back workplaces incorporate the CBL
downtown area and furthermore 300+ ATM corners. This collected by CBL IT which is
real concern of security of CBL, and the second need is ADC (Alternative Delivery
Channel), ADC is had some expertise in different keeping money exercises for the whole
heating help that’s why we call it saving money spine, so for the most part it’s vital
security issue for GAD. Also, the third need is the Card Division

3.2.1 Historical Background of CBL

CBL set up in 1983, as a unique private business banks in this country and is the best
bank doing all things considered as to regard getting by and large recommended
techniques away with age-old standard decentralized dealing with a record illustrate.
Ahead of time it used to take after standard and customary setting aside extra cash
procedures in any case the bank has experienced tremendous redoing in 2007 and has

9
acknowledged joined course of action of movement with the new organization group
tolerating control under the association of its new CEO Mr. Mahmood Sattar, serving
distinctive customers through 4 particular business divisions to be specific Corporate and
Investment Banking, Retail Banking (Incorporates Cards), SME Banking and Treasury
and Market Risks. The point of convergence of the "change" undertaking was in like way
on enhancing the general thought of favorable circumstances; re-pushing the brand over
once more; utilizing the advancement potential; redesigning the possibility of thing
commitments and putting extensively higher benchmarks for client association. He drove
a few innovative activities to change the bank into a forefront budgetary store utilizing
the most recent progressions. City Bank is an advancing on the web bank having 90
online branches, 11 SME/agribusiness branches, more than 150 ATM and 12 money store
machines spread the nation over that joins a verifiable Islamic Banking branch under the
brand name 'City Manarah'. In 2009, as a gathering with American Express, it has moved
the eminent American Express Credit Card in Bangladesh and is the sole director of the
brand sitting over every single neighborhood action.

City Bank is moreover the essential business bank in Bangladesh to have issued Dual
Currency Credit Card, holding an imperative enlistment of VISA and Master Card
foundations. Starting late CBL has been named as 'Best Bank in Bangladesh for 2012' by
Finance Asia for grasping overall endorsed strategies by disposing of age-old traditional
decentralized dealing with a record model and culture. This is the essential year of
Finance Asia's extending the respect into close-by bank arrangement in Bangladesh.
Other than winning this famous respect, CBL in like manner got "The Strongest Bank in
Bangladesh give" in 2010 from The Asian Banker, "American Express Marketing
Award" for Outstanding New Card dispatch in 2010 from American Express, "Cash
Gram International's Best Corridor Collaboration – South Asia in 2011" in affirmation of
its inner settlement improvement and the ISO 9001:2008 accreditation from Moody
International, for its entire back end and advancement exercises.

Starting late the Bank transformed into an IFC (International Finance Corporation) client,
the fourth such bank in the entire business in the country, in the wake of encountering

10
asking for checks and due diligence grasped by IFC. CBL stamp is starting at now
apparent as the "most supposed changing association in the country" and now it is shaped
to wind up the "Most Reputed Financial Institution Brand" soon. The Bank have dispatch
Priority Banking organizations for high aggregate resources individuals in 2013. This
year will see the dispatches of Mobile Banking for non-dealing with a record people,
Platinum Amex card for the best end of the market, the country's first Business-to-
Business (B2B) card and so on. At present an expansive business process reengineering
(BPR) is moreover in advance under the consultancy of PWC, India, which is likely
going to result in a whole overhaul of the Bank's operational methodology and practices.

3.2.2 Vision
The vision of CBL is given below

Table 3.1
Vision of CBL

The Financial Supermarket with a Winning Culture Offering Enjoyable Experiences

3.2.3 Mission
There are several missions in CBL. Those missions are given below

Table 3.2
Mission of CBL
 Offer a wide array of products and services that differentiate and excite all
customer segments
 Be the “Employer of choice” by offering an environment where people excel and
leadership are created
 Continuously challenge processes and platforms to enhance effectiveness and
efficiency
 Promote innovation and automation with a view to guaranteeing and enhancing
excellence in service

11
  Ensure respect for community, good governance and compliance in everything we
do

3.3 Operation Activities and Products and Services

As CBL is a Bank the items are installed with every one of the administrations,

a) Credit Cards
 American Express: From 2010 CBL has establishment the AMEX into the
Bangladesh through 3 classifications and furthermore accessible in double cash
mode.
I. Silver II. Gold III. Platinum
 VISA: A worldwide and it issues in both Local Currency (Taka) and Foreign
Currency (US Dollar) in 2 classifications and furthermore accessible in double
cash mode.
I. Silver II. Gold
b) Debit Cards or ATM Cards
 Master Card: CBL issued the master card as default card for any account holder,
so there for it has no particular classes as contrast with charge cards.
 VISA Electron: This is likewise others plastic money issued by the CBL with
some uncommon benefits. As of late this VISA electron limited by CBL.
c) Special Cards
 City Maxx American Express Card: It's an absolutely a particular card which
can be use as American Express yet as debt card framework.
d) Retail Banking Service

 All the general managing an account administrations, similar to Bank Accounts,

Student Accounts and so on.

12
  Various sorts of Schemes are additionally offered by retail preparing, similar to
Deposits, Savings, RMG Accounts and so on.

 Various sort of Loans, similar to Consumer credit, Education advance, Heath

Loan and so forth.

e) SME Banking Service

CBL have extensive variety of SME saving money benefits through 3 singular wings

 Medium Segment SME Service.

 Small Segment SME Service.

 Agro SME Service.

f) Wholesale Banking Service

CBL additionally offered extensive variety of administrations under the discount keeping
money benefit, those are characterize as,

 Long term Finance

 Midterm Finance

 Structured Finance

 Cash Management

 Project Management

Despites every one of those administrations there are part of administrations likewise
offered by CBL which can be recorded as beneath,

 Priority Banking Service

 Corporate Banking Service

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  City Touch (Advance Internet Banking)

 Trade Services (Foreign and Local)

g) CBL Subsidiaries

The City Bank restricted have endowments two distinctive individual business
associations, those are

1. City Capital Resource

2. City Brokerage

3.4 Credit Management System of CBL

3.4.1 Credit management or Loan management of CBL

Review Credit hazard emerges from all exchanges where real, unexpected or potential
cases against any counterparty, borrower, obligor or guarantor, which are alluded to by
and large as "counterparties" exist, including those cases that they intend to convey.
These exchanges are normally a piece of their customary non-exchanging loaning
exercises, for example, credits and unexpected liabilities. They measure, oversee/alleviate
and report/screen our credit hazard utilizing the accompanying standards:

 Their credit risk administration work is autonomous of their business divisions and in
every one of their divisions, credit choice norms, procedures and standards are
reliably connected.

14
 A key guideline of credit chance administration is customer's credit due perseverance.
Their customer choice is accomplished in a joint effort with our business division
partners who remain as a first line of guard.

 Every new credit office and each augmentation or material difference in a current
acknowledge office, (for example, its tenor, insurance structure or significant
contracts) to any counter gathering requires credit endorsement by the fitting expert
level. We allocate credit endorsement experts to people as per their capabilities,
experience and preparing and we survey these occasionally.

 We measure and combine all our credit exposures to each obligor over our solidified
Group on a worldwide premise in accordance with administrative prerequisites.

 We have methodology set up proposed to recognize beginning time credit exposures

for which there might be an expanded danger of misfortune. The goal of this early
cautioning framework is to address potential issues while satisfactory alternatives for
activity are as yet accessible. This early hazard discovery is a precept of our credit
culture and is expected to guarantee that more noteworthy consideration is paid to
such exposures.

 We facilitate with Credit Administration and Legal Division to address

documentation inadequacies and in evaluating potential dangers that may endanger
the Bank's advantages.

3.4.2 Credit policy of CBL

The Credit Policy Manual (CPM) is an imperative instrument for execution of credit
chance administration in the Bank. The main role of the CPM is to characterize the bank's
credit arrangement and in this way fill in as a kind of perspective hotspot for credit
related issues. It guarantees that the bank's loaning rehearses are sound, judicious and
versatile to the changing loaning situation of an economy and in accordance with BB's

15
rules on various techniques of the Bank. CBL at first executed CPM properly following
all principles and directions of Bangladesh Bank and different partners in its 346thBoard
Meeting vide Board Memo no. BD-9386/2008 dated 25 Feb, 2008. In this manner the
CPM was updated by fusing a few changes in the year 2013 vide Board Memo no.
12940/2013 dated December 22, 2013.

Bangladesh Bank (BB) has prescribed changed rules on Credit Risk Management dated
on March 08, 2016 to enhance the hazard administration culture in banks, to set
guidelines for isolation of obligations and duties of different gatherings included and to
help upgrades in the Banking part. In light with above scenery, the Management of the
City Bank Limited has prescribed the subject updated CPM in accordance with most
recent CRM Guideline of Bangladesh Bank which has predominantly stressed on:

 Risk Appetite;
 Credit and Collateral Concentration;
 Credit Risk Mitigation Strategies;
 Roles of Board of Directors, Executive Committee, Credit Risk Management
Committee, Senior Managements, and Relation Managements;
 Management of Problem Loans;
 Risk Based Loan Pricing and Credit Administration.
Presently we ask for the Board to survey the reconsidered "CPM" and accord
endorsement.

3.4.3 Loan Proceeding

Advances incorporate the most fundamental asset and the basic wellspring of obtaining
for the setting aside extra cash budgetary associations. Of course, this (credit) is also the
genuine wellspring of peril for the bank organization. A sensible bank organization
should reliably endeavor to make an appropriate agreement between its entry and danger
required with the credit portfolio.

16
Cash loaning is one of the primary elements of a business bank. In the loaning procedure,
choice of borrower is the most vital and crucial occupation for an investor. Before a client
appreciates credit offices it is vital that the candidate ought to fit the bill for five Cs. The
five Cs are:
 Character – Intention to pay back the progress
 Capacity – Borrower's wellness in regards to utilizing the save gainfully and make
pay
 Capital – Financial quality to Lending spread the risk
 Conditions – General business condition between two social occasions
 Collateral – Implies additional securities

Banks gathers store for loaning and venture, this capacity is performed by Loans and
Advance Department Sanctioning of advance proposition beginning from party’s ask for
a credit accumulation of fundamental papers, data and money related explanation,
examining of those data, planning of advance proposition, security investigation and
valuation, review, loaning hazard examination, setting terms and conditions have
additionally known to us. CBL takes after a methodology for authorizing advances. They
are given beneath:

Stage 1: A customer who has willed to assume acknowledgment from bank needs to
make an application close by the reports, for instance, Two duplicate of photographs,
Valid exchange permit must be put away by the part. There must be depiction of
assurance in the application. The security must not be the home state touch base out of
common or void land, Physical evaluation of protection must be done and publicize a
motivator from the region must be settled. It must be done by B.Ss Engineer,
Confidential report from various banks is moreover required, announcement and pay
articulation is required.

Stage 2: Proposal must be sent to the Head Office by the branch close by the letter of
hypothecation and other various sorts of confirmation as indicated by round

17
Stage 3: Head Office certifies the support with a couple of terms and conditions and if
the social event agrees with this, he signs on the duplicate copy.

Stage 4: To legitimize the protection board lawful counselor will complete the
documentation and will give letter of satisfaction.

Stage 5: After denoting the charges reports the credit is made and the limit is set up for
installment by giving the social affair a check book.

Stage 6: After installment stock must be displayed by the social occasion on month to
month commences. For this circumstance sudden evaluation is essential. In each 45 days
the progress need to be adjusted.

3.4.4 Types of Loan

There are two types of loans CBL provide. One is Retail loan and another is SME loan.
Various types of Retail and SME loan products and their features, requirements are given
below:

3.4.4.1 Retail loan

A Retail loan is a loan that lends money to individuals or retail customers. CBL also give
retail loan to its customers.

Table 3.3
Required Documents for Retail loan
Customers Documents
1. Photo 2 copy + NID + TIN Certificate
2. Bank Statement 1 year’s / Passport copy
3. Loan sanction letter & A/C Statement of 6 months
4. Trade license 2 years before (Businessman)
5. Salary certificate (Service holder)

18
6. Pay slip 6 months (Service holder)
7. Utility Bill photocopy
8. Visiting Card / Business Card / Office ID
9. Company RJSC Certificate / Partnership deed
10. Passport copy / Provide E-mail address
11. Two Reference Name, Address, Telephone and Mobile No.
12. Info: Spouse Name, Education, Credit Card, Asset and Liability, No. of children and
school, Residence, Ownership, Car usage, Club membership
Guarantor / Amex Supplementary
1. Photo 2 copy & NID photocopy / Passport copy
2. Spouse Name and Spouse Father Name
3. Visiting card / Present & Permanent Address and other information
Amount of Loan Approve process
1. At First find the yearly income of customer
2. Then according to loan it multiply with approximate risk rate
3. Than divide it half yearly
4. At last it multiply by the rate according to occupation (For Business 8%, for Service
12% and for their employee 15%)

Various types of Retail loan that CBL offer to its customer are given now.

a. Credit card

It is a revolving loan. The expression "Credit card" by and large means a plastic card
issued by Scheduled Commercial Banks (SCBs) appointed to a Cardholder, with a credit
constrain, that can be utilized to buy merchandise and ventures using a credit card or get
loans. For issuing Credit Card earlier endorsement of BB isn't essential. With the
endorsement of their Board of Directors banks can issue credit cards.

Table 3.4
Credit Card Information

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Product Features Fee Interest
a) Loan amount range Tk. a) Yearly Tk.2000 for silver After 1 month of use money
50000 to Tk. 500000 card there will be 2% interest per
b) Upto 90% against b) Yearly Tk. 5000 for gold day
security card
c) Upto 15% discount in c) Yearly Tk.25000 for
purchase with the card platinum card

b. Auto loan

Owning an auto is never again an extravagance. Profit our Auto Loan, a customized
vehicle advance item from City Bank for people.

Table 3.5
Auto loan Information
Product Features Eligibility
a) Loan sum extending from Tk. 3 lac to a) Age Limit: 22 to 60 years
Tk. 40 lac b) Experience:
b) Financing up to half of reconditioned or = Salaried Executive: Minimum 1 year
new vehicle cost encounter incorporating a half year with
c) Up to 100% financing for credit against current boss
money security = Professionals: 1 year experience of
d) Loan tenor 12 to 60 months training
e) No concealed charges = Businessman: Minimum 2 years
f) Competitive financing cost association in a similar business
c) Income Criteria: Minimum Tk. 30,000
Processing Fee Interest rate
1% of the loan amount 12.50%

c. Personal loan

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Whatever the event or prerequisite might be, Personal Loan from City Bank - is there to
tackle all your necessity and to satisfy everything you could ever hope for.
Table 3.6
Personal loan Information
Product Features Eligibility
a) Loan sum extending from Tk. 50 a) Age Limit: 22 to 60 years
thousand to Tk. 20 lac b) Experience:
b) Loan tenor 12 to 60 months = Salaried Executive: Minimum 1 year
c) No shrouded charges encounter incorporating a half year with
d) Competitive loan cost current boss
= Professionals: 1 year experience of
training
= Businessman: Minimum 2 years
contribution in a similar business
c) Income Criteria:
= Salaried Executive: Tk. 15,000 (A/C pay)
= Professional: Tk. 30,000
= Business Person: Tk. 30,000
Processing Fee Interest rate
2% handling charge on any advance sum a) Salaried person - 12.50%
b) Business person - 13.50%

d. City scholar

City scholar is a special training advance offered to support higher examinations in

Bangladesh as well as abroad. It presents to you 90% settled store an incentive as
understudy advance or up to tk.10 lac on simply security free premise. Right now is an
ideal opportunity to exceed expectations and surpass your companions. You also can be a
city scholar.

Table 3.7

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City scholar Information
Eligibility Features
This instruction credit is intended to meet a) Secured overdraft facility : value can be
any sort of instructive money related need up to 90% of the security deposit.
of an understudy. Any reliable individual b) Unsecured facility : loan amount up to
can benefit this credit office for his/her Tk. 10 Lac
posterity or for himself/herself. c) Equal Monthly Installments Facility
d) Quick processing time
e) Competitive Interest Rate
f) Student file service facility

e. Home loan

Your fantasy to possess your own particular house is just a matter of decision. What's
more, when you do choose, we will enable you to influence your fantasy to work out.

Table 3.8
Home loan Information
Product Features Eligibility
a) Loan sum going from BDT 5 lac to BDT a) Age Limit: 22 years to 65 years
1.2 center b) Experience:
b) Repayment tenor 1 year to 25 years = Salaried Executive: Minimum 2 years
c) Maximum 5 stage dispensing is encounter incorporating a half year with
permitted current boss
d) Financing up to 70% of property = Professionals: 2 years experience of
estimation training
e) Early settlement office = Businessman: Minimum 3 years
f) Loan against property contribution in a similar business
g) No shrouded cost c) Income Criteria:
= Salaried Executive/Professional:
Minimum Tk. 40,000

22
 = A/C Paid Salaried: Minimum Tk. 35,000
Processing Fee Interest rates :
a) 1% handling charge on any advance sum a) New flat purchase - 11.00%
b) No preparing expense on Takeover and b) Renovation - 11.50%
improvement offices

Figure 3.1
CBL Home Loan Partner

3.4.4.2 SME loan

SME loan is the loan for small and medium sized organization. It is a large sector to earn
interest. CBL also give SME loans.

Table 3.9
Required Documents for SME loan
Business Documents:
1. Up to date Trade License
2. Old Trade Licenses

23
 3. NID/Passport of Proprietor
4. Up to date TIN (Tax) Certificate of Proprietor
5. Photo of Proprietor- 2 Copy
6. All Bank Statement- Last 2 years (As per tenure of financial statement) separately
7. All Shop Deed
8. All Go-Down deed
9. Financial Statements (Income Statement and Balance Sheet)
10. Loan Sanction Letter (If Applicable)
11. Loan Statement of last 1 year (If Applicable)
12. IRC certificate (If Applicable)
13. LC performance---Last 03 years (If Applicable)
14. Fire certificate (If Applicable)
15. Environment certificate (If Applicable)
16. BSTI certificate (If Applicable)
17. Trade mark (If Applicable)
18. Appointment Letter of Distributorship/Dealership (If Applicable)
Spouse:
1. Photo Passport Size- 02 Copy
2. NID/Passport
3. TIN (If Applicable)
Land Owners/Mortgagor:
1. NID/Passport
2. Up to date TIN (Tax) Certificate
3. Photo- 2 copies
Land Documents:
1. Title Deed
2. Mutation Khatian with DCR
3. City Jorip Khatian
4. Up to date Rent Receipt (Khajna)
5. CS, SA, RS Khatian
6. Bia Deeds

24
 7. Municipality holding tax
8. Building plan with approval letter
9. Other land related documents

Various types of SME loan offer by CBL are now given.

a. Secured facilities

Secured Loan is a completely anchored advance office for any genuine reason. The
security for the credit ought to be in a perfect world CBL securities (FDR, Deposit plot,
WEDB). Bank would fund against customers CBL FDR or different banks/NBFIs
securities. Secured Overdraft is a completely anchored and spinning office for any
genuine reason. Bank would back against customers CBL FDR or other bank
FDR/NBFIs securities. Secured Loan-Bullet Payment is a completely anchored and
settled term (quarterly intrigue Based) advance office for any genuine reason.

Table 3.10
Secured loan Information
Product Features Loan tenor
a) Minimum credit sum Tk. 50,000 and a) Secured Loan: 12 to 60 months
Maximum 90% of relevant securities b) Secured Overdraft: 1 year
b) Quick preparing c) Secured Bullet Payment: 1 year or 2
c) Minimum documentation years
d) No concealed charges
Processing Fees Eligibility
a) Up to Tk. 5 lac: BDT 2,0008 a) Minimum age: Above 18 years
b) Above Tk. 5 lac to Tk. 10 lac: BDT b) Minimum Income: Tk. 15,000 for all
3,000 calling
c) Above Tk. 10 lac: BDT 4,000

25
b. Partial secured facilities

Partial Secured Loan is a novel credit office, where your settled store with City Bank or
with some other banks/budgetary foundations will now enable you to benefit two
advances in the meantime from us one as overdraft (up to 90% of qualified securities)
and different as an EMI advance (up to Tk. 10 lac).

Table 3.11
Partial secured facility loan Information
Product Features Eligibility
a) Fully anchored credit will be up to 90% a) Age Limit: 22 to 60 years
of qualified securities b) Experience:
b) Unsecured credit will be dependent upon = Salaried Executive: Minimum a half year
Tk. 10 lac (payable in Equal Monthly business history
Installments) = Professionals: 1 year experience of
c) Tenor running from 12 to 60 months training
d) Competitive loan cost = Businessman: Minimum 2 years
inclusion in a similar business
Processing fee Minimum monthly income:
2% handling charge on any advance sum a) Salaried Executive: Tk. 15,000
b) Self Employed proficient: Tk. 25,000
c) Business Person: Tk. 30,000

c. Letter of Credit (L/C)

This is a pre-import back which is made as duty for the benefit of the customer to pay a
concurred whole of cash to the recipient of the L/C endless supply of terms and states of
the credit. Hence at this stage bank does not straightforwardly expect any obligation, in
that capacity the same is named as unexpected risk. In this bank collect the required
documents (Trade license, TIN Certificate, IRC registration certificate, Performa Invoice,

26
Insurance paper etc) as BB wanted. And process that with exporter’s bank. If everything
goes well than good will be import. Exporter gives the legal paper to bank, then bank will
give 90 days time to pay and until than hold the paper. After payment, bank gives the
paper to importer. For such procedure bank take commission. Basically, CBL take 14%
commission but if bank gives full margin than take 15% commission.

3.4.5 Default loan precision

Although so mush precision, sometime bank fail to recover the loan from customer after
given the loan. In that situation CBL fellow some steps to recover it. Those steps sre
given below:
Step 1: Observe customer every month. If customer's business or financial situation is
not good than this is an early alarm for bank. Bank report that is customer has possibility
to get defaulted.
Step 2: If any customer gets defaulted than officer than BM will have meeting with
customer and try to convince him or her to make the payment in time
Step 3: If still the customer don't pay than office and BM report it to Head office. Than
head office will call him for a meeting and try to convince him.
Step 4: If still the customer don't pay than SAU (Special Assessment Unit) will handle
the matter by convincing the customer.
Step 5: If still customer doesn’t pay than bank start legal action. Bank fill case under
"Artho Rin Adalot" . And after judgment, if the judgment is in favor of bank than bank
take the mortgage asset under their control. And arrange an oction , sell the asset and
recover the loss as much possible.

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 3.5 SOWT Analysis

Table 3.12
SOWT Analysis

Strength Weakness

a) Long banking experience a) Too much corporate complexity to

b) Strong corporate identity impose any new policy
c) Enthusiastic and empowered workforce b) Increasing of work load every day but
d) Strong financial position resource is limited
e) Efficient performance c)discouraging small entrepreneurs
f) Advance ATM machine, Walk through d)High cost for maintaining an Account
ATM system first in Bangladesh
g) Most secure AMEX protocol. AMEX
standard service
Opportunity Threat

a) Country wide network a) increasing number of private banks

b) Increasing service quality that also helps b) Similar products are offered by other
to increase client banks
c) Experienced managers c) Industrial downward trend
d) Usage of efficient software d) Everyday new type of security issue
e) City Touch, first time in Bangladesh arise
with whole banking facility e) Vulnerable condition of low and other
f) Unstable government security support

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 CHAPTER 4
FINDINGS AND ANALTSIS OF THE STUDY

4.1 Findings of the Study

Amid the time of internship I have accomplished tremendous encounters that improve
my learning of managing an account broadly. Here I have endeavored to display my
encounters and learning so as to give a superior judgment. CBL is one of the fasts
developing and submitted private business bank in the nation. It conducts business
exercises effectively around the nation to accomplish its destinations, and objectives and
steadily sending towards its central goal and vision. The bank have been accomplishing
constant development rate in all extras of managing an account activity since its
foundation. The greater parts of its offices are working inflexible for better client
administrations. Side by side these; I additionally have discovered the accompanying
quintessence through watchful examination.

a) At exhibit CBL has huge number of credit card and debit cards in the market all
powerful features. Most of the clients of charge card are male.

b) Accordingly expansive number of clients are utilizing store item at the present time.

c) The Bank is exorbitantly joined. For each and every move, branch office needs to go
for assent from the Head Office. The Head Office immovably controls each and every
branch office. This sort of dependence on Head Office backs off the activities of branch
office.

d) The current framework is tedious both for the financiers and additionally the
customers. For occurrence; as far as investors, the officers need to experience a ton of
records in looking the subtle elements of a specific exchange, on the off chance that it is
originated before. As far as customers, they need to hold up in a long line keeping in
mind the end goal to give the officer a chance to discover the right record.

29
e) Conversely with customers the place for delaying/sitting domains are not sufficient,
therefore, customers need to hold up by standing.

f) Sometimes, clients don't get proper consideration amid occupied hour. Without a doubt
regardless of the way that these customers are not a/c holders of the bank, the liberality
and negative verbal trade of the bank and its general picture of significant worth
advantage are disappointed.

For an organization business that is in action for whole deal, these effects will
unfavorably impacts the unselfishness as time goes on, which is apparently risky.

4.2 Analysis of the Study

During this period from anglicizing the data and observation there are some thing get
clear about CBL. Those are given below:

a) CBL Urdu road branch is a mainly a depository branch.

b) In this branch total deposit in a year is approximately Taka. 140 crore But the amount
of loan given in a year is approximately Taka. 32 crore which is 22.86%

c) CBL is very effective in terms of loan recovery. The rate of default averagely is 11%
and in Urdu road branch it is 8.5% averagely.

30
 CHAPTER 5
CONCLUSION AND RECOMMENDATION

5.1 Recommendations

CBL should begin wanting to expand the foundations and furthermore critical builds
expected to help its expansive client base. Along these lines, thinking about the
administration segment of Bangladesh, CBL ought to be more cognizant to manage its
clients as the clients have now more decision to save money with and there are
organizations that are increasing rivalry by concentrating more on brilliant client benefit.
To distinguish these bank needs appropriate data framework is required gravely. Client
input can make an incentive to build right administrations and relations to the correct
clients what's more, increment exact duty, devotion, trust and fulfillment to end up with
gigantic great relationship. CBL has a few administrations hole to bona fide of obliging
the customer conduct and their potential mentality, which made them inadequate in
current banks. CBL needs to limit their administration hole however solid investigation
on client complaint, desire, observation and basic inner advertising viewpoints. Steps
ought to be taken to execute the new procedure keeping in mind the end goal to guarantee
a smooth administration as guaranteed to clients.

a) Account opening strategy is excessively basic yet it ought to be less demanding

generally individuals will hesitant to open a record with CBL.

b) Customer administration ought to be more brilliant and quick. CBL should build more
Buyer Banking action. Their Consumer keeping money action is very agreeable yet it will
be better in the event that they can put consideration on person client.

c) Card division ought to be more dedicated to convey item on time.

31
d) Representatives are required to give attractive getting ready to work and handle clients
under strain. For this circumstance both the branch specialists and higher authorities can
prompt each other to set up the delegates.

e) Should grow more key arranging as to contend with its opponent banks.

f) Increase the ATM booth.

g) Problems in regards to IT and web connection should consider important.

h) Employees ought to get legitimate information on items and offices to convey the
client with respect to ideal time, right offices according to their prerequisites.

i) According to client reaction, CBL is setting aside long opportunity to process and
dispensed the credit. All the more simple way should discover to limit the length for
credit process.

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5.2 Conclusion

As an association, City Bank has earned the notoriety of best managing an account
activity in Bangladesh. The association is substantially more organized contrasted with
some other bank working neighborhood or outside in Bangladesh. It is tireless in quest
for business advancement and change. It has a notoriety for being an accomplice of
shopper development. With a heft of qualified and experienced human asset, City Bank
can abuse any opportunity in the keeping money part. It is pioneer in presenting
numerous new items like American Express Credit Card, Special financial balance and
administrations in the saving money segment of our nation.

This errand concentrated on the Loan administration of the Urdu Road branch and
perceived some essential information that could make the advantages all the more
appealing and besides overhaul the banks reputation among the customers. With the
present execution of the Bank and with little change all finished will certainly impact
City to bank a champion among other Private Bank in Bangladesh in the nearby future.

33
 CHAPTER 6
APPENDIX

6.1 Reference

Website
 www.thecitybanklimited.com (Accessed 20 June, 2018 and 3August, 2018)
 https://groups.google.com/forum/m/#!topic/understandingmoney/qcDDdaSGRqI
(Accessed 19 June, 2018)
 https://www.dhakatribune.com/business/banks/2017/10/06/defaulted-loans-
amount-12-gdp (Accessed 1 August, 2018)
 dspace.bracu.ac.bd>bitstream>handle (Accessed 20 June, 2018)
 http://www.assignmentpoint.com/business/finance /credit-risk-management-
system-of-city-bank.html (Accessed 19 June, 2018)

Book / Magazines
 Annual Report 2016
 Annual Report 2017
 The City Bank Limited Credit Policy Manual

Questionnaire / Interview

 Shibly Sadik , RM, CBL

 Md. Amin Uddin , Rm, CBL
1. Type of loan providing ?
2. Basic processing to pass a loan ?
3. Interest rate for different type of loan ?
4. How to determine the amount of loan according to customer profile (different
types) ?
5. How to determine the eligibility of a customer for a loan (different types) ?
6. What papers customers need to submit to get a loan (different types) ?
7. What kind of security taken against loan (different types) ?
8. If bad debt happen or customer fail to pay back the loan what initial take to
recover it ?
9. Current position of loan sector ?
10. What kind of loan customer prefer more or taking more ?
11. Percentage of default loan customer ?
12. Amount & ratio of disbursement and recovery
13. Amount & ratio of total deposit and total credit
14. Credit policy
15. Functions of Credit Division

34