Analysis

Of
Credit Management of Rupali
Bank Ltd.

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Analysis of Credit Management of Rupali Bank Ltd.
Submitted by:
Md. Faysal Hossain
Id: 152-11-4709
Program: B.B.A

Supervised by:
Shahana Kobir
Associate Professor
Department of business Administration
Faculty of business & Economics
Daffodil International University
Submission date:

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Letter of Testimonial
November, 2018
Shahana Kobir
Associate Professor
Department of business Administration
Faculty of business & Economics
Daffodil International University
Subject: Submission of Internship Report.

Dear Madam,

With great pleasure I am going to submit my internship report on “Analysis of Credit Management
of Rupali Bank Ltd.” Which you have to assign me as a vital requirement of internship program. I
would like to state that, I have to complete the internship Report on “Analysis of Credit
Management of Rupali Bank Ltd”. I have found the study of the Analysis of Credit Management
of Rupali Bank Limited is quite beneficial and interesting. I have to try my level best to prepare
an impactful report.

I would like to state that, the report which is made by me is not only able to provide a clear-cut
idea about the overall condition of the “Analysis of Credit Management of Rupali Bank Ltd” but
also I am quite optimistic and believe that you will find this report’s worth for all the labour that I
have put in it. It’s a pleasure for me to present my internship report on “Analysis of Credit
Management of Rupali Bank Ltd”. I express my gratitude to you for your continuous support that
made me able to complete the report. I welcome your entire query and take pride to answer them.

Sincerely Yours,
Md. Faysal Hossain
Id: 152-11-4709
Program: B.B.A
Daffodil International University

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Student’s Disclaimer
My name is Md. Faysal Hossain, bearing ID: 152-11-4709, student of the BBA program of
Daffodil International University. My major is in accounting, do hereby declare that, the internship
report entitles “Analysis of Credit Management of Rupali Bank Ltd” is uniquely prepared by me.
The report is prepared after completion my internship in rupali bank ltd.

I am declared that, the assigned work which is done by me for partial requirement of my B.B.A
degree and as a part of the academic curriculum. I also confirm that, the assigned report is not be
used to any other organization or any other competitors for their interest.

Md. Faysal Hossain

Id: 152-11-4709
Batch: 41st
Program: B.B.A
Daffodil International University
Department of business Administration
Faculty of business & Economics

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Certificate of Supervisor

This is to certify that, Md. Faysal Hossain, student of Daffodil International University, bearing
ID No: 152-11-4709, under faculty of Business Administration has done an internship report
entitled “Analysis of Credit Management of Rupali Bank Ltd.” under my supervision. He has
worked with rupali bank limited at savar bus stand branch as an internee and completed the report
entitled “Analysis of Credit Management of Rupali Bank Ltd.” for partial fulfilment to obtain my
B.B.A degree. He has to complete the report by himself. He has been permitted to submit the
internship report.

The student is found to be intelligent, sincere and hardworking. The student has put in a lot of
work and has also brought forth his views and ideas which are being studied for implementation
at appropriate time. Md. Faysal Hossain bears a strong moral and a very pleasing responsibility. It
has been a great pleasure to work with him. I wish him every success in his future endeavor.

Shahana Kobir
Associate Professor
Department of business Administration
Faculty of business & Economics
Daffodil International University

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Acknowledgement
At first, I would like to express my pleasure to the Almighty Allah who has given me the ability
and opportunity to go through the total process of internship program successfully and help to
complete the report within the schedule of time. After the Almighty Allah, I would like to give a
special thanks to my internship supervisor Shahana Kobir, who help me a lot to complete the task
properly. I would like to thank all the employees of rupali bank limited at savar bus stand branch
for being friendly and cooperative during my internship program.

The submission of my internship report as a part of my internship program. During the preparation
of my internship report I received assistance, guidance, and lot of hard working time from my
internship supervisor shahana kobir, Associate Professor, Department of business Administration,
Faculty of business & Economics, Daffodil International University and as well as Mr Omar Faruk,
Manager in-charge of savar bus stand branch, Rupali bank limited.

Besides those person, I am extremely indebted to several Clint and relate person of Rupali bank
limited because it is very much difficult to prepare my internship report successfully without the
help of those person. At last I would like to mention the wonderful working environment of rupali
bank limited and group commitment of this bank. The bank has enabled me to deal a lot of task to
do and provide the chance to observe the banking activities during my internship period of three
months. During my internship program, I got some important information, valuable and wise
suggestion and their valuable thoughts, which also help me to prepare the internship report.

Finally, I would like to thank all the relate person who help me to present the report perfectly.

Md. Faysal Hossain

Id: 152-11-4709
Batch: 41st
Program: B.B.A
Daffodil International University
Department of business Administration
Faculty of business & Economics.
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Executive Summary
As a student of accounting department, it is a great opportunity to get the chance as an internee in
government financial institution. There are several renowned and popular government bank in
Bangladesh. Among those Rupali bank limited is one of the most profitable and modern
government banking financial institution. The vision of the rupali bank limited is to be a premier
financial institution as well as the premier contributor to the economy. The process of prepare the
report is completely depends on my three months internship program on rupali bank limited, which
I conducted to fulfilment my B.B.A. program. The report mainly contain the Analysis of Credit
Management of Rupali Bank Limited.

The prime objective of the report is that, to Analysis of Credit Management of Rupali Bank
Limited, client’s understanding towers the performance of the rupali bank limited, and analyse the
financial performance regarding the credit management. Like every financial institutions of a
country, rupali bank limited also plays an important role to mobilize the idle savings and try to
give the guild-line their way, to useful investment projects. The financial institution building the
back bone of a nation, which helps the nation to go a long way by the capital rise, credit providing,
supports to new entrepreneurs with their concerns, the financial institutions helps to drive the
nation towards financial solvency. For a developing country like as Bangladesh, the role of
financial institutions is so much imperative. Loan products are one of the vital component of the
bank’s assets. Most of the revenues are generated by the bank’s credit products. One of the most
impactful market leaders in banking sectors of Bangladesh is rupali bank limited. By the strong
brand image of rupali bank limited and affiliation with a large parent company, they are able to
provide innovative services to the consumers for developing a country like as Bangladesh.

I used both primary and secondary source of data. To collect the data , I conduct a survey which
provide me a lot of vital information, perception of the client and relate person of the bank. The
internship report divided into different seven chapter. The very first chapter of the report contain
with Introduction, Mission, and Vision, objective, scope, methodology and limitation of the report.
Then two chapter of the report contain the analysis of credit management activities and financial
data analysis. Then the next chapter contain the survey analysis. The remaining chapter contain
the customer satisfaction level, findings, recommendation and conclusion of the report.

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Table of contents:

Name of the contents Page No.

Chapter - 01: Introduction of RBL
1.1. Introduction…………………………………………………………………… 01
1.2. Background of the Study……………………………………………….……...02
1.3. Vision of RBL………………………………………………………………….
1.4. Mission of RBL……………………………………………………………………
1.5. Core value of RBL……………………………………………………………….
1.6. Organogram of RBL…………………………………………………………….
1.7. Products and services of RBL……………………………………………………
1.8. The interest rate of RBL………………………………………………………….
1.9. Scope of the study…....………………………………………………………….
1.10. Objective of the internship report………………………………………………
1.11. Methodology……………………………………………………………………
1.12. Research type…………………………………………………………………
1.13. Limitation…………………………………………………………………….

Chapter - 02: Credit management analysis of RBL

2.1. Definition of credit…………………………………………………………….
2.2. Definition of credit management of RBL………………………………………
2.3. Objective of credit management of RBL……………………………………….
2.4. Credit policy of RBL…………………………………………………………..
2.5. Evaluation of credit appraisal of RBL…………………………………………
2.6. Credit planning of RBL………………………………………………………
2.7. Credit criteria of RBL………………………………………………………..
2.8. Credit pricing of RBL……………………………………………………….
2.9. Eligibility of credit as the rules of RBL…………………………………….
2.10. Different types of credit facility of RBL…………………………………….

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2.11. Credit appraisal process of RBL…………………………………………….
2.12. Credit monitoring and follow-up of RBL……………………………………
2.13. Credit recovery process of RBL……………………………………………..
2.14. Overall credit procedure of RBL……………………………………………
2.15. Swot analysis of RBL………………………………………………………
2.16. CAMELS Rating of RBL………………………………………………….
2.17. Statutory requirement compliance of RBL………………………………..

Chapter - 03: Financial data analysis of RBL……………………………….

3.1. Year wise capital & reserve (Chart)………………………………………
3.2. Net profit (Chart)………………………………………………………….
3.3. Sector wise credit distribution (Chart)……………………………………
3.4. Non-performing loan analysis (Chart)…………………………………..

Chapter - 04: Analysis of customer satisfaction level of RBL

Compare with a private bank (SEBL)…………………..……
Chapter - 05: Findings ………………………………………………………..
Chapter - 06: Recommendation and conclusion …………………………….
Chapter - 07: Bibliography…………………………………………………….

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Chapter: 1
Introduction

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1.1. Introduction:

Banking has a long term and rich history. It started as a result of people’s need and wants. But
with the flow of decade it has been playing an important role in fulfilling the dire needs of
businessmen and others party. As the size and complexities of business and services are
increasing day by day, banking sector is also providing various innovative services with basic
functions and try to increase the size of its operation and as well as reduce the complexities.

To fulfil the demand the number of banks are increasing day by day. Mainly there are two types
of banks like:

 State-owned commercial bank limited.

 Private-owned commercial bank limited.

There are several state-owned commercial bank in Bangladesh, among those Rupali Bank
Limited is one of the largest commercial bank. Rupali bank limited has been served the millions
of people in urban areas and rural areas across the entire country with its wider branch network.
Rupali Bank ltd. operates through 550 branches. Not only it is operate in Bangladesh but also
operate in foreign correspondents all over the world. It is emerging as one of the Bank in the
country with the spirit to provide services to the millions of people. The Bank expressed its
aspiration through the slogan of "Assures Better Service". The bank try to minimize any type
of negative impact on the environment that might be associated with the bank’s operations or
services, and try to search the new way for maintaining the natural resources. The main goal
of the bank is not only maximize the profitability, but also try to ensure the sustainable business
for the customers, shareholders and above all for the community which the bank operate as its
activity. Not only goal of the bank, but also, vision, mission, strategy and core values articulate
the bank’s passion to bridge the people and businesses sustainably.

1.2. Background of the Study:

As a student of Bachelor of Business Administration (BBA), I would like to conduct a practical

orientation in any business relate organization for fulfilling the requirements of the Internship
Program. The main objective of the internship program is to face the students to the real world
situation. This report has been done as a partial requirement of the internship program for the
BBA students. This report is prepared for the internship program consisting of a major
in depth study of the total banking business and Analysis of Credit Management of Rupali

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Bank Ltd. A student can application of his theoretical intelligence as a fundamental elements
to the practical knowledge. Bearing this in mind the internship program was being included in
the BBA curriculum. The objective of the report analysis, not only give the student to expose
the organizational work situation, but also to provide an opportunity for applying classroom
learning in practice activity. The internship program is playing a very much important role for
the students because there are completely difference between theoretical knowledge and
practice knowledge.

1.3. Vision of the rupali bank limited:

 The vision of rupali bank limited is to expand its loyal customer based on the known
as the financial partner of choice, which continuously exceeds customer expectations.
1.4. Mission of the rupali bank limited:
 Developing the ethical values and try to meet its customer's financial needs and wants.
 To achieve financial success, it try to develop a long-term relationships with its
customers.
 It offer rewarding career opportunities and cultivate its staff commitments.
 To achieve the human resource with the superior’s qualities, service packages and
technological infrastructure, it try to innovative work continuously.

The vision and the mission of rupali bank limited are guided by the central bank of Bangladesh,
which are approved by the Board of rupali bank limited.

1.5. Core values of rupali bank limited:

 Performance
 Integrity
 Social responsibility
 Respect
 Innovation and
 Team work etc.
1.6. Organogram:

The rupali bank limited has 11 layers in its organogram. In the organogram the Managing
Director, stand in the first to the top level management and Office Assistant stand in the
bottom to the lower level management. The organogram has been shown below:

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 Top-Level Management:

Managing Director, MD

Deputy Managing Director, DMD

General Manager, GM

Deputy General Manager, DGM

Assistance General Manager, AGM

Mid-Level Management
Senior Principal Officer

Principal Officer
Lower-Level Management
Senior Officer

Officer

Junior Officer

Office Assistant

Chart-01: Management hierarchy of rupali bank limited.

Source: RBL, savar bus stand branch.

1.7. Products and services of Rupali Bank Limited:

Rupali bank limited try to its level best to serve the customer in best way. To fulfil the customer
demand rupali bank limited launch different types of product and services for its customer
satisfaction. Some products and services of this bank are given below:

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Traditional Banking:

There are some traditional retail products or services in rupali bank limited, which offer to the
customer. Those types of product or services are given below:

 Current deposit (CD)

 Call deposit (CRD)
 Fixed deposit (FD)
a. 3 months and above but not more than 3 years
b. 3 years and above but not more than 5 years
c. 5 years and above but not more than 8 years
 Savings deposit (SD)
 Special notice deposit (SND) etc.

Interest rate of different types of deposit:

Sl. No Particular Interest rate

01 Interest rate on saving deposit 4.5%
02 Short note deposit 3.5%
03 Interest rate on FDR
I. 3 months and above but not more than 6 months 5.25%
II. 6 months and above but not more than 1 year 5.50%
III. 1 year and above but not more than 2 years 6.00%
IV. 2years and above but not more than 3 years 7.00%

04 Deposit from foreign remittance 6.00%

05 Rupali bank deposit pension scheme 6.50%

Chart-02: Interest rate of different types of deposit.

Source: RBL, savar bus stand branch.

The rate interest of deposit, is verifying in different types of circumstance.

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Online banking:

Rupali bank is the first government bank of Bangladesh, which start online banking system.
Online banking system means, enables the relate customers of the bank to handle their account
management and perform their account transactions directly with the bank through the internet.
To cope with the Morden banking, rupali bank start online transaction system. For providing
this service rupali bank take some charge from customer, like as:

Amount of transaction Commission VAT Total

Below tk. 10,000 Tk. 5 Tk. 1 Tk. 6
Tk. 10,000 – tk. 25,000 Tk. 10 Tk. 2 Tk. 12
Tk. 25,001 – tk. 50,000 Tk. 15 Tk. 3 Tk. 18
Tk. 50,001 – tk. 1,00,000 Tk. 25 Tk. 4 Tk. 29
Tk. 1,00,001 – tk. 5,00,000 Tk. 50 Tk. 8 Tk. 58
Tk. 5,00,0001 – tk. 10,00,000 Tk. 100 Tk. 15 Tk. 115
Tk. 10,00,001 - tk. 20,00,000 Tk. 200 Tk. 30 Tk. 230
Above tk. 20,00,001 Tk. 400 Tk. 60 Tk. 460

Chart-03: The charge of online banking of rupali bank limited

Source: RBL, savar bus stand branch

Mobile banking:

Rupali Bank is the bank, which first introduce the mobile banking system in state-owned bank,
to provide mobile financial service. Rupali bank provides the service of mobile banking under
the sure cash. At present the rupali bank has more than 80 lac clients, 70,000 agents and more
than 200 distributors across the country. Most of the schools, colleges and universities are
getting the benefits in realising tuition fees and allowances under the service of mobile banking.

Schemes:

There are some traditional retail schemes in rupali bank limited, which offer to the customer.
Those types of schemes of rupali bank are given below:

 Rupali monthly savings scheme (RMSS)

 Rupali lakhopoti Deposit scheme (RLDS)
 Rupali kotipoti deposit scheme (RKDS)

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  Rupali quarterly profit scheme (RQPS)
 Rupali yearly profit scheme (RYPS)
 Rupali festival deposit scheme (RFDS)
 Rupali students’ savings account (RSSA)

Loans and Advances

There are some loans and advance system in rupali bank limited, which are offered to the
customer. The bank also provide different types of funded and non-funded loans to the
customer. That types of loans and advanced are commonly known fixed capital finance,
working capital finance, project capital finance and other types of finance. Those type of
finance are given below:

 Corporate loan
 Car loan
 Home loan
 Salary loan
 Professional loan
 Education loan
 Term Loan
 Cash Credit
 Overdraft
 Bank Guarantee
 Green Project Loan
 Small and Medium Enterprise Loan (SME)
 Agricultural loan etc.

Services of rupali bank limited:

 Bangladesh Electronic Funds Transfer Network (BEFTN)

 Automated Inward Foreign Remittance
 Online transaction facility
 SWIFT
 ATM Service
 Real Time Gross Settlement (RTGS)
 Rupali Bank Sure Cash
 Utility Bills Collection

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  SMS service
 City corporation/Municipal Holding tax collection and
 Value–added tax and source tax collection etc.
1.8. The interest rate of rupali bank limited:

The interest rate of this bank are given below:

Sl. No Name of credit Interest rate

01 Business loan (term) 9%
02 Business loan (continuous) 9%
03 Any purpose loan (term) 13%
04 OD against RTBS 14%
05 OD against RDBS 13.50%
06 OD against FDR 7.25%
07 OD against RMSS 9%
08 OD against RDS 9%
09 Sahaj loan (term) 9%
10 Rural credit 9%
11 IDCP (interest during constitution period) 9%
12 Staff loan 5%
13 House building loan 9%
14 Professional loan / customer credit 13%
15 Cash credit hypothecation 11%
16 Agricultural credit 7%

Chart-04: show the interest rate of rupali bank limited

Source: RBL, savar bus stand branch

Note: The interest rate of rupali bank limited are verifying in different situation.

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1.9. Scope of the study:

The internship report bear the respondent analysis part where I have analysis some internal and
external factor to obtain some information, so that I can express the real scenario of the bank.
I have an expectation that, my internship report’s result could be used for improvement of credit
management system in the bank. But the main purpose of the report is to only express or
measure the credit management system rather than predicting anything’s, if the management
of the bank accept my research report’s results they can use my finding and recommendation
to improve their activity on the basis of my internship report.

1.10. Objective of the internship report:

The internship report which, I made for some specific purpose. Those purpose are given below:

Principal objective of the internship report

 Principal objective of the report is to “Analysis the Credit Management of Rupali Bank
Ltd” (at savar bus stand branch)

Generic objective of the internship report:

 To assess the credit management activities of rupali bank limited.

 To express the comparison between the rupali bank Limited’s credit division and a
private bank’s credit division in the mind of their customer.
 To make finding which related to credit management of rupali bank limited.
 To give suggestion the ways and means for improvement the bank policy and
techniques.
 To discuss the credit services, which provided by rupali bank limited.
1.11. Methodology:

Which data or information is use to complete my internship report, collected those report’s
information from primary and secondary source of data. It is more important to collect the data
properly, because if the data are not sufficient in the time to prepare the report, the report can’t
fulfil its purpose or goal and it is not to possible present the report meaningfully, well
presentable way to the relate parties.

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Primary sources of data:

During the preparation of the internship report, the required data are collected from different
primary source of information. The process of collect of the primary data is given below:

 Observation, where I complete my internship program.

 Collect the information from the employee.
 Collect the information from the relate client and customer.

Secondary source of data:

Secondary source of data is divided by two parts like as:

1. Internal source of data: Website, annual report of the rupali bank limited, others
documents which published and relate to rupali bank limited.
2. External source of data: Books, articles, journals, newspaper etc.

1.12. Research type:

This the internship research report, where express the real scenario of the credit department of
rupali bank limited in a short. And try to Analysis the Credit Management of Rupali Bank
limited.

1.13. Limitation:

Analysis the Credit Management of Rupali Bank limited, during my internship program I have
found some limitation to prepare. Those limitations are given below:

 The main obligate to prepare of the internship report was, incompetence information
about the bank because the shortage of internship time.
 Don’t get enough time to discuss with the employee of bank, because of their
busyness and I have to spent busy time with my own assignment job.
 Due to the secret policy of the bank, the bank does not provide all types of
information which I needed to prepare the report. That’s way I have to use secondary
data to prepare the internship report.
 Rupali bank limited follow the rules and regulation of the central bank of Bangladesh,
recently Bangladesh bank changes there rules and regulation that’s way it is difficult
to collect the update information of the bank.

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 Chapter 2
Credit Management
Analysis

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2.1. Definition of credit:

Credit is one of the most important and serious task of the bank. Which types of principals or
constitution are strictly maintain by the bank, credit is one of them. Credit means the ability
of a bank to provide the loan to person or party, to whom required money and the receivable
party of the loan make promise to repay the loan in future with its benefit, which commonly
known as “interest” and the part ensure that they are eligible to get the advantage from the
bank. Credit is a part of power of the bank.

2.2. Definition of Credit Management:

One of the most vulnerable task of the bank is to recover the provable loan from the customer.
Credit management is the process which provides the assurance that, the given credit to the
customer is recoverable. In credit management process, involve some persons who known as
credit manager. They mainly maintain the process.

2.3. Objective of credit management process:

The rupali bank’s credit management process, there are some specific objective for credit
management like as:

 Make decision to considering the credit limit.

 Analysis the acceptable level of risk.
 Try to increase the wealth maximise.
 Try to minimise the non-performing credit activity.
 Analysis the level of security against the loan etc.

2.4. Credit policy of rupali bank limited:

As I mention earlier, the credit is one of the most vital task of the profit making bank, for that
every bank should have a different and unique credit policy. Like that rupali bank limited has
the credit policy, which follow to lend the money as credit to its customer or client. It was
founded for providing the term loan, working capital loan, and other all kinds of financial
assistance of banking facilities to accelerate the growth of development to small and medium
industrial sectors in Bangladesh. The policy of rupali bank limited is “assure to better service”.
Rupali bank limited formulated the policy to consider some objective, like as:

 It is a state-own institution, that’s way it not only consider the profit but also consider
the socio-economic development.

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  At least, 50% of the loanable fund to provide the small and medium industrial sector as
credit, according to the memorandum and articles of association of bank.
 Properly inform the employee about the credit policy so that they serve properly.
 Invest in that field which provide assure to return the credit, as well as check the
previous Credit background, check the present market condition of the borrower and
credit worthiness of the borrower.
 To assure the adequate security against credit.
 To reduce the lending cost and complexity, during sanction the credit etc.

2.5. Evaluation of credit appraisal of rupali bank limited:

 Clearly define the purpose of loan.

 Clearly define the repayment method as well as source of repayment method.
 Clearly define the concerns of bank’s profitability.
 Clearly define the risk taking capacity of the particular client.
 Normally a customer can not taking the 10% of the free reserve of the particular bank,
but it is possible with the declaration of board of directors.
 Laws and regulation will support the credit application etc.

2.6. Credit planning of rupali bank limited:

Normally we known, planning means previous preparation to do any things. Like that sense
the rupali bank limited has the planning for sanction the credit. Rupali bank is the commercial
bank and its main criteria is to generate profitability by utilization of its creditable fund. Credit
planning occur on the basis of funds are available for which particular period of time. It is so
crucial to utilise the fund properly because the funds are collected by the deposit of the
customers and clients of the bank. For that bank handle the credit plan more effective and
efficiently. Planning credit is good for bank as well as emplaning is very much harmful to the
bank. Like as:

1. Excess credit create the shortage of funds and create the liquidity problem to the bank.
2. Too much short credit, create the idle funds to the bank and this funds reduce the
profitability of the bank and increase the expense of the bank because the bank should
pay the interest to the customers who makes deposit.

So like every bank rupali bank limited maintain the credit plan very much carefully.

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2.7. Credit criteria o rupali bank limited:

Criteria means the set of rules or principles, which help to someone, to judge or decide
something according to standard. Like that rupali bank limited have some criteria of credit.
When a person or organization want to take the credit from rupali bank, the related party
must follow those criteria of it. The criteria of it are given below:

 To analysis the capacity, worthiness, financial position of the project and directly avoid
fake unworthiness project which make loss to the bank.
 Location is one of the important factors, which must examine properly.
 To analysis the expense, income and duration of the credit etc.

2.8. Credit pricing of rupali bank limited:

In banking business, those types of factors plays vital role pricing of credit is one of them. A
bank’s profit or loss depend on pricing factors. So it need to be handle carefully. There are
some elements of pricing factors like as:

1. Cost of capital
2. Interest expense
3. Risk factors
4. Administrative cost

2.9. Eligibility of credit as the rules of rupali bank limited:

Eligibility means to do something by satisfying the condition or standards. As well as credit

eligibility means, when the person or organization fulfil the credit condition of the rupali bank
limited, then the bank consider the party as eligible for getting the credit. Some rules or
condition of the rupali bank limited, like as:

 The person who related to profession, like as: doctor, engineers, businessman, lawyer
etc.
 Government organization.
 Private organization.
 Semi- government organization.
 Both government and private Banks, insurance, other financial institution etc.

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2.10. Different types of credit facility of rupali bank limited:

Credit is the must activities, which is provided by the every financial institution include rupali
bank limited. It is the process of making the profit to the institution. There are different types
of field, where it provides credit for different purpose. It collect provide able funds for credit
from the customer though deposit. It focus the rate of interest, during the time of deposit and
providing credit. The different rate of interest is profit or loss of the bank. The offer able fields
of providing credit of rupali bank limited are given below:

General loan:

This loan is generally given against collateral. There are many types of collateral like as;

 Hypothecation of land, building, and goods.

 Personal mortgage, like personal guarantee.

Term loan:

Rupali bank limited is general given the credit as short term and long term to the industry.
Normally the term loan is given to the industrial sector on the basis of their market position.
Normally this term loan is given against both types of collateral, like: personal guarantee of the
related person, building and machinery of the industry and raw material of the credit taking
industry. Within 5 years, that type of loan is repayable under a certain payment schedule.

Overdraft:

Overdraft is a one kind of credit, which provide by the bank to the customer against current
accounting. For over drafting facilities the customer withdraw more money than the customer
deposit amount of money. The bank charge extra interest for overdraft facilities. The bank
normally provide this credit to the reputed and well-known businessman. In rupali bank limited,
provide two types of overdraft, like as:

Temporary overdraft:

This type of overdraft is given to the special client of the bank. This process is not too much
secure than secure overdraft. Generally it is provide to the client without any types of mortgage.

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Secure overdraft:

The bank provide this credit against different types of mortgage. Like as, FDR of the client
(80% of the deposit amount), and different types of sanchaypotra etc.

Working capital credit:

Sometimes the bank provide the necessary amount to the business or institution for performing
the daily or continuous activities of the particular institution.

Cash credit:

Cash credit is a short-term financing, but it is sanction against mortgage. Sometimes the bank
keep the position of the particular assets, which known as pledge and sanction the credit. The
bank keep the pledge until repayment of the credit.

Bill discounting:

One of the important task of the commercial bank is bill discounting. It means the bank receive
the ball from the client and pay the cash to the related client immediately and the bank deduct
some particular amount from the bill as commission. Ten the bank collect the bill amount from
the particular party, if the bank is failed to collect the amount against the bill then the bank
return the bill to the client and take the amount with interest, which the bank provide the client
during the time of bill discounting.

Export credit:

Most of the time the bank provide the credit to the purpose of export facility. That type of credit
is adjusted from the export process. The bank provide PC (packing credit), also known as
export credit. The purpose of the credit is to provide the necessary money, which need to the
manufacturer to make the product able for export.

Letter of credit (L/C):

It means, the bank received the payment of seller from the buyer. Letter of credit is a pre-import
type finance. It assure the both party to do the business payment and it is the demand loan
facility, which provide the advantage to the favour of exporter.

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Corporate credit:

The credit of the corporate section is the largest credit section of the rupali bank, which entire
the credit management of the bank and it is managed by the industrial credit division of the
bank. This types of large credits are distributed in line with the credit policy of the rupali ank
limited. The bank distributed the industrial credit in different sectors, like as: Garments
industry, Textile industry, Engineering, Frozen Food, Chemical, Transportation, Footwear,
Hospital, Ceramics and Plastic industry. The bank always gives the priority to the pressure
sectors, which support the national economy of the country.

The credit of small and medium enterprises

Small and medium enterprises are identify as the engine of economic growth and employment
generation for sustainable industrialization, in the sector of developed and developing countries
of the world. In Bangladesh it plays a vital role in its economy by providing rapid
industrialization of small and medium enterprises. Rupali bank limited has undertaken the
small and medium enterprises funding activities by the expansion of credit to the particular
sectors. The bank introduced 4 products for SME financing, like as:

Name of credit Up-to amount

Shohoj Rin Up-to tk. 2 lac.
Peshajibi Rin Up-to tk. 5 lac.
Baboshayee Rin Up-to tk. 3 cr.
Majhari Rin Up-to tk. 20 cr.

Chart- 05: credit of small and medium enterprises.

Source: RBL, at savar bus stand branch.

Home loan:

Home loan is a type of term loan. Rupali bank limited offers the easy home loan, which helps
you to save interest expense and purchase or build your desire home. And it also provide some
opportunities, which help the borrower to repay the loan more easily.

Besides those type of credit rupali bank limited also provide, car loan, treasury bills, treasury
bonds, debenture, electricity bill, gas bill, telephone bill, WASA bill, land development tax,
city corporation/municipal holding and sewerage tax, value–added tax and source tax etc. In
general rupali bank limited, provide those type of loan for the purpose of customer demand.

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2.11. Credit appraisal process of rupali bank limited:

Credit application:

When the borrower wants to take the credit, first of all the borrower has to submit the
application, from which branch the borrower wants to take the credit. The borrower clearly
mention the objective of loan. After receiving the application from the client, the bank inquiry
the information very much carefully. After the process, if the credit officer of the bank is
satisfied with the client eligibility for credit, then the officer asked to submit an application and
said to fill-up the form with specific details, which written in the form.

Selection a borrower for credit:

In credit sanction process, selection of a borrower for providing the credit, is most difficult and
challenging task. Degree of risk is arise, mostly related to select the client in credit sanction
process. If the bank select the wrong borrower, the bank will suffer to recover the credit and
vice-versa. During the sanction of credit, the bank focus on some characters which characters
are the combination of “C”.

 Capacity: ability to manage the business and proper use of the credit.
 Capital: the strength of the equity as well as assets.
 Character: morality, family background and promise to repay the loan.
 Collateral: the property given as security.
 Condition: over all general business condition of two parties.

Submission of loan application form:

The bank provide an instruction paper, which help the borrower to prepare him or her properly
for loan proposal. The Information of loan proposal should be completed, two copy
photograph, sign other documents and all other formalities are must be completed and
submitted to the particular branch.

Collection of information:
If the particular client take the loan previously from this bank or other bank, the bank examine
the past loan record. There are some credit reporting bureaus like as, credit information bureau
(CIB), Bangladesh bank (BB), and other credit rating agencies.

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Documentation of credit process:

After the inquiry of the character, capacity and capital of the borrower, the bank taking the
proper action for provide credit. Besides those the banks obtains proper documents executed
from the borrower for protecting the credit against the credit default. The classification of the
credit documents are divided into two categories:

Primary Securities of the credit – Cash, FDR, sanchaypatra etc.

Secondary Securities of the credit – These types of securities are tangible securities that can
be realized from the sale procedure or transfer of the particular property.

Exam- Immovable tangible properties.

Processing for credit proposal:

After receiving the report from different bureaus, the particular branch prepare a credit proposal
which bear the terms and condition for credit. Besides those the bank creates a lots of
documents, which are required to sign by the borrower before the lending of loan. Those
necessary documents and steps are like as:

 The Application of loan is duly fill-up and signed by the particular borrower.
 Both parties accept the term and condition of sanction the loan.
 Provide the trade licence.
 In case of partnership business, registrar partnership agreement.
 In case of company business,
 Copy of memorandum.
 Ensure not to change the management and memorandum of the company.
 Provide audited financial statement.
 Certified the amendment of the registration charges.
 Demand promissory notes.

For project appraisal:

In banking sector, project appraisal is important for some reasons like as:

 Ensure the repay of the credit.

 Try to achieve the goal.
 Justify the legality of the investment.
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  The loan approval time for small and medium industry is not more than two months
from the date of receiving complete application form.
 Try to obtain the cost of draft layout plan of proposed building.
 Ensure that there are no objection for the setting of industrial location and ensure the
legal permission of the authorities.
 Ensure the utility letter of consent, which provides the necessary utility services.
 Prepare the detail credit report of the project, which the bank shall carry out to its credit
investigation department.
 Ensure the individual project appraisal report for Small Scale and Cottage industry and
investigate how it covers the basic areas of project viability.
 Sometime bank hire a panel of experts, when it necessary to seek the report which
prepared by the bank and borrower.
Project appraisal technique:
 Managerial aspect
 Technical aspect
 Marketing aspect
 Financial aspect
 Socio-economic aspect etc.
Approve the credit by the higher authority:

There are number of authority who are related to approve the credit like as:

Credit committee of branch:

In branch committee, manager of the branch and other person to whom selected by the branch
manager for consultation with head office.

Credit committee of head office:

 The credit committee of head office in accordance with authority established and
delegated by the board of directors:
 Analysing, approving and reviewing extension of credit in accordance with the
authority established and delegated by the board of director.
 Ensure to take the necessary steps to improve the quality, after analysis the quality of
the employee.
 Ensure all types of information of credit application are collect in orderly.
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  Confirm that the transaction of policy is consist with the existing credit policy of the
Bangladesh bank
 Recommending for the credit policy to the executive committee

Sanction of credit:

After getting the approval of sanction from head office, the particular branch issue the sanction
letter to the particular borrower. The sanction latter contains some details, like as: Name of the
borrower, Nature of the credit facility, Amount of the credit, Ensure the purpose of the credit,
Expiry date of the credit, Interest rate of the credit, Security of the credit etc.

 The borrower must receive a letter

 Before the disbursement of loan, DP notes and others documents must be signed and
submitted to the relative authority.
 All documentation and formalities must be completed before availing the loan. As per
policy and practices of the bank, the loan shall be governed by all other terms and
conditions that will be applicable for the sanction
 The credit will be bearded as the subject of Bangladesh bank restriction.

Credit administration:

The function of credit administration department of rupali bank limited, analysis the proper
documentation critically, carefully and approve the disbursement of credit facilities. For that
type of reason, the credit administrative function strictly separate from the relation of rupali
bank Limited’s management or marketing in order to possibility of control being compromised
of issue and not being highlighted at the appropriate level of it.

Disbursement of credit:

For implementing a particular project, proper disbursement procedure is essential. After

checking and completed all formalities of the credit, then the respective officer of the branch
disburses the loan to the borrower. For withdraw the money as loan, at first the borrower open
an account for withdraw the credit amount because the loan amount provide as check.

2.12. Credit monitoring and follow-up:

To reduce the loss of credit, credit monitoring provide the information clearly about the credit
and in which field that credit is used. It also tracking the risk aspects of the credit and compare
with the criteria which is set down at the time of credit sanction. For analysing the credit

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monitoring the credit portfolio, the branch manager is main responsible person. The reasons of
credit monitoring are given below:

 Terms and condition during the approval of credit has been maintained properly.
 The overall value of the collateral is adequate against the credit.
 To analysis the market condition of the business and to review the credit of borrowers
at least once in annually.
 Earning from the credit is cost effective.
 To analysis the borrower’s business performance and compare with the project and find
the actual scenario if exist any type of deviations, then meet with the owner and discuss
to identify the actual reason.
 The Satisfactory transaction has been made by the borrower.
 Try to find out the actual or the potential bad credits as soon as possible.

Amount of loan Time of review Time of reporting

Taka 1 - Taka 10 lac Quarterly By the next month 30th day
Taka 10 lac - Taka 1cr. Quarterly By the next month 30th day
More than Taka 1cr. Monthly By the next month 30th day

Chart- 06: Credit monitoring

Source: RBL, savar bus stand branch.

2.13. Credit recovery process:

As I mention earlier, credit is the most difficult task of the bank. It became great problem in
the time of credit recovery process. In modern era, it is the main challenging task of the bank.
The recovery of credit should be quacked and according to the repayment schedule of the credit
because the bank want to provide the facility to more and more customer for their benefits and
bankers want to recycle the scares resources for the best use of funds. If a borrower of the bank,
fails to make the payment which dues to the bank. Then the bank has to consider what steps
has to be taken to recover the remaining debt. After that the Bank will take the following steps
to recover the credit, like as:

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Effort of moral pressure:

In case of fail to repay the credit, the authority of the bank will visit the business place of the
borrower and try to find out the reasons and discuss with the borrower, why the borrower does
not repay the loan. This process creates the mental pressure to the borrower to repay the credit.
The bank also may request to some influencer customers of the particular area to create exert
pressure on the borrower to clear the dues of bank’s credit. Besides those process, if there is a
guarantor, the guarantor also called for adjust the account.

Sent a notice:

If the borrower of the credit does not repay the credit, then the bank would be send a notice by
the registered post to the present address of the borrower and the guarantor of the credit though
a lawyer. This process has to ask the borrower to repay the credit within a specific period of
time (normally 30 days), and also said that if the borrower fails then the bank dispose the
security, which taken from the borrower without any type of asking to the borrower and the
bank adjust the dues credit.

Filing a suit:

When the credit is not fully secure, and if there is a shortage of credit to adjust after the disposal
of securities and all steps of recovery is fail to recover the amount then the bank file a suit to
the borrower to recover the dues amounts. This type of case, “Artha Rin Adalat law 2003”
acting a vital role to recover the credit amount.

The rupali bank limited has been followed those series of activities to recover the default
amount of credit in both branch and head office level. All the branches of rupali bank limited
are kept under serious pressure to take necessary precautions to avoid new default of credit in
the particular branch. Besides those the branches have been given yearly target to recover the
all dues from the existing default borrower to reduce the classified credit and keep the minimum
level. The head office of the rupali bank limited, continuously monitors the each branch of it,
whether it is performing in accordance with the policy or role of the rupali bank limited,
Bangladesh bank, and other types of roles and regulation which related to the credit.

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2.14. Overall credit procedure of rupali bank limited:

Client application of credit

Collection of information

Credit administration

Sanction of credit

Monitoring the terms and condition of the credit

Appraisal of credit

Approve by the branch, head office, executive and directors etc.

Disbursement of credit

Monitoring and follow-up the credit

Taking the precaution

Taking legal action against uncollected credit

Chart-07: Overall credit procedure.

Source: primary data.

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2.15. Swot analysis:

Swot analysis means, a strategic planning or tools to evaluate the strengths, weakness,
opportunities and threats. It involve in a business venture and a specific project. Swot analysis
involves in specifying the objective of the project and objective of the business venture and
involve to identify the internal and external factors, which are favourable and unfavourable to
achieve the objectives. The main objective of the swot analysis is to identify the key internal
factors, like as (strengths, weaknesses), the internal factors are controllable and external
factors, like as (opportunities, threats), and the factors are uncontrollable.

Direct observation and discussion of the rupali bank Limited’s employee, clients and other
related person during my internship period , my internship report are able to points out the
some strengths, weaknesses ,opportunities, and threats like as:

Strengths:

Strengths are the symbol of an organization that are impactful to achieve the organizational
goal. The Strength of the credit department of rupali bank limited, at savar bus stand Branch
are like as:

 The rupali bank limited strictly follow the ethical banking practices.
 It strictly maintain the secret of customer account.
 The employee of the bank, try to provide the speedy service to the customer.
 It has several attractive deposit schemes.
 The bank deals with its customers in a transparent manner and there is no any hidden
cost etc.

Weakness:

Weakness are the symbol of an organization that are harmful to achieve the organizational goal.
The weakness of the credit department of rupali bank limited, at savar bus stand Branch are:

 Sometimes the bank do not follow the Guidelines properly, which is provided by
Bangladesh bank.
 Lack of online banking facilities.
 Comparatively higher interest rate in case of credit.
 To appraise, monitor, evaluate and audit the projects, the bank required to expertise and
trained manpower.

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  The bank has not been yet successful in creating an interest-free mechanism to place
their funds.

Opportunities:

Opportunities the internal factors, which can work as the strengths of an organization and help
to achieve the organizational goal. Some opportunities of the credit department of rupali bank
limited, at savar bus stand Branch are like:

 Comparatively lower interest charge rate.

 Opportunities for the huge population of Bangladesh.

Threats:

The threats are external factor, which can work as a barrier to achieve the organizational goal.
Some threats of the credit department of rupali bank limited, at savar bus stand Branch are like:

 Current law and order situation of the banking sector is not positive for the investment.
 Unrest political situation in Bangladesh has become a serious threat for banking.
 Providing modern banking services, foreign banks are occupying the markets of the
local bank in Bangladesh.

2.16. CAMELS Rating:

CAMELS rating ratio is the elements that has been used for measured or evaluated the bank
performance by the national credit union administration (NCUA). The rating adopted by the
NCUA in 1987, is based upon five critical elements of a credit union’s operation and sensitivity
if the recent elements, which recently added to the NCUA. There are crucial banking operation
which analysis under CAMELS rating ratio. The rupali bank limited maintain those indicators
as followed of the rules and regulation of Bangladesh bank. The CAMELS rating standing of
the rupali bank limited has been analysed and given below like as:

 Capital adequacy ratio

 Assets quality
 Earning performance
 Liquidity position
 Management efficiency
 Sensitivity to market risk

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2.17. Statutory requirement compliance:

Though rupali bank limited is a large type of financial institution in Bangladesh, are subject to
different types of statutory requirement as required by the superior authority. Though analysis,
if the rupali bank has compliance with the statutory requirement, the performance of the bank
are measured because most of those types of requirement are design for improving of the bank’s
overall performance and try to reduce the overall bank risk. There are some statutory
requirement, which are followed by the bank, like as:

SLR (statutory liquidity requirement):

The statutory liquidity ratio, which is commonly known as (SLR) has been calculated and
maintained as per the section 33 of the banking company act 1991, (amendment of 2013) and
according to the MPD circular no.4 and 5 dated 01 December 2010 of Bangladesh Bank
(effective from 15 December, 2010), All listed banks have to maintain an SLR of minimum
19.5%, including CRR based on weekly average of demand and time liabilities of the base
month which is two months back of the reporting month. The rupali bank limited has
maintained the minimum SLR at 19.5%. It means, the total statutory reserve which, the bank
has to maintain to Bangladesh bank. It reserve in different ways like as, cash and different types
of securities and bonds. The main objective of the SLR, provide the clear-cut picture about the
bank’s liquidity. SLR indicates the which, amount the bank can use out of its deposit.

CRR (Cash reserve Requirement):

The cash reserve requirement (CRR) has been calculated and maintained according to the
section-33 of the bank company act “1991” (the amendment of 2013) and according to the
MPD circular no.4 and 5 dated, 01 December 2010 of Bangladesh Bank. All types of listed
banks have to maintain the Cash Reserve Requirement (CRR), in which 6% on daily basis and
6.5% on bi-weekly basis on weekly average of demand and time liabilities of the base month
which is two months back of reporting month. The rupali bank limited has maintained the CRR
on its bi-weekly basis. It is set by the central bank for maintaining the minimum liquidity.
Under the process of CRR a specific percentage of the cash of the particular bank, deposit the
amount to Bangladesh bank. The main objective of this, is to maintain a strong position of
liquidity. We can get the overall idea about the bank’s liquidity position.

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 Chapter 03
Financial Data
Analysis

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The overall performance of rupali bank limited, last 5 years

Taka in cr.

Particulars 2017 2016 2015 2014 2013

Income statement
Interest income 2335.8 1350.91 1532.29 1449.52 1284.21
Interest expense 1329 1526.34 1705.59 1571.14 1190.82
Net interest income 1006.8 (175.43) (173.30) (121.62) 93.39
Non-interest income 845.2 809.27 898.11 752.76 451.20
Non-interest expense 725.2 722.61 474.61 398.44 339.34
Net non-interest income 120 86.65 423.50 374.32 111.87
Profit before provision and tax 1126.8 (88.78) 250.20 232.70 205.26
Provision for credit and others 452.5 0.00 144.12 153.79 99.19
Profit after provision before 674.3 (88.78) 105.08 78.90 106.07
tax
Provision for tax 374.5 37.08 82.58 36.86 65.69
Profit after tax 299.8 (125.86) 23.50 42.05 40.38
Balance sheet
Authorize capital 700.00 700.00 700.00 700.00 700.00
Paid-up capital 284.76 276.04 240.03 208.73 181.50
Total shareholder’s equity 1189.48 1165.64 1270.65 1477.45 1181.50
Deposit 28346.71 27911.60 25382.96 22165.68 17795.58
Borrowing 139.43 133.19 147.98 130.52 74.64
Others liability 4672.38 4200.42 3253.38 3034.18 2566.39
Total liability 35935.49 32245.21 28784.33 25330.39 20436.62
Investment 8936.35 7965.12 8265.42 6822.00 3925.31
Credit and advance 19357.63 17515.04 14251.50 12501.20 10742.63
Property, plant & equipment 1537.59 1412.14 1419.40 1396.61 955.98
Others assets 1995.45 1829.25 1589.49 1753.49 1770.07
Net current assets 19634.02 17450.08 12981.46 13044.52 10605.02
Earning assets 27843.08 25252.41 22058.06 21480.37 16120.46
Total assets 34837.92 33410.85 30054.98 26807.84 21618.58
Capital measures

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 Total risk weighted assets 17754.74 17697.74 14964.72 13881.98 12556.40
Core capital (Tier A) 990.21 890.81 1102.00 1073.88 430.97
Supplementary capital (Tier 308.89 292.83 385.49 374.58 239.43
B)
Total capital 1545.43 1183.65 1487.49 1448.46 670.40
Required capital 1965.12 1769.77 1496.47 1388.20 1255.64
Capital excess or shortage (419.69) (586.13) (226.66) 60.26 (585.24)
Foreign exchange business
Export 2654.34 2500.45 2162.78 1941.31 1817.08
Import 15432.56 10801.36 11987.70 7798.49 6516.51
Remittance 2122.43 1652.52 1850.32 1453.43 1087.51
Number of employee
Officers 3456 3757 3969 4178 3941
Staff 1766 1681 1677 1736 1728
Total 5222 5438 5646 5914 5669
Other information
No. of work station 25 25 25 25 25
No. of corporate branch 55 55 55 55 55
No. of foreign correspondents 453 444 462 468 454
No. of branches 566 562 554 535 528
No. of shareholder 4987 4897 5268 5248 5737

Chart- 08: Overall performance of rupali bank limited.

Source: Annual reports of RBL (2013 – 2017)

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Year wise capital and reserve of rupali bank limited:

YEAR WISE CAPITAL & RESERVE

1600

1400

1200

1000

800

600

400

200

0
2017 2016 2015 2014 2013

Chart -09: Year wise capital and reserve (in cr.)

Source: Annual report (2013-2017)

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Net profit of rupali bank limited:

Net Profit

299.8

23.5 42.5 40.38

2017 2016 2015 2014 2013

-125.86

Chart - 10: net profit (in cr.)

Source: Annual report (2013-2017)

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Sector wise credit distribution of rupali bank limited:

5%

Industry
30%
Agriculture
Small & medium business
60%
Others
5%

Chart - 11: Sector wise credit distribution

Source: Annual report (2017)

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Non-performing loan of rupali bank limited:

Non Performing Loan

4.50%

3.88%

3.25% 3.21% 3.12%

2017 2016 2015 2014 2013

Chart - 12: Non-performing Loan

Source: Annual report (2017)

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 Chapter: 4
Analysis of Customer
Satisfaction Level:

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Analysis of the customer’s satisfaction level of rupali bank limited, compare with a
private bank (southeast bank limited):

A customer satisfaction level depends on several factors, among them credit department in one
of them. If the bank get any complain they try to write down the complaint to the complaint
box and try to take the action against the particular complaint as soon as possible. To find out
or show the customer satisfaction level, prepare a set of question and try to ask them and try to
know the answer of them. 20 regular clients of the rupali bank limited and 20 regular clients of
a private bank (southeast bank limited), are selected for the survey, like as:

The survey question:

 The credit process of rupali bank as well as southeast bank are satisfied?
 The loan package and social responsibility of rupali bank as well as southeast bank are
satisfied?
 The employee’s level of efficient of rupali bank as well as southeast bank are satisfied?
 The interest rate of credit and charge of deposit of rupali bank as well as southeast bank
are satisfied?
 The overall performance level of rupali bank as well as southeast bank are satisfied?

Show the customer satisfaction level of rupali bank limited:

Statements of the clients: SS (strongly satisfied), S

(satisfied), N (neutral), DS (dis - Satisfied), SDS SS S N DS SDS
(strongly dis - Satisfied)
Are the credit process of rupali bank satisfied? 8 4 2 5 1
Are the loan packages and social responsibity of 15 3 2 0 0
rupali bank satisfied?
Are the employee’s level of efficient of rupali bank 7 7 2 2 2
satisfied?
Are the interest rate of credit and charge of deposit of 15 5 0 0 0
rupali bank satisfied?
Are the overall performance level of rupali bank 10 6 4 1 0
satisfied?

Chart- 13: Customer satisfaction level of rupali bank limited.

Source: Survey and primary data.

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 Customer Satisfaction level of RBL
60

50

40

30

20

10

0
Strongly Satisfied Satisfied Neutral Dis-Satisfied Strongly Dis-Satisfied

Chart: customer satisfaction level

Source: primary data

Show the customer satisfaction level of southwest bank limited:

Statements of the clients: SS (strongly

satisfied), S (satisfied), N (neutral), DS (dis - SS S N DS SDS
Satisfied), SDS (strongly dis - Satisfied)
Are the credit process of southwest bank 12 4 2 1 1
satisfied?
Are the loan packages and social responsibity 7 4 5 2 2
of southwest bank satisfied?
Are the employee’s level of efficient of 15 5 0 0 0
southwest bank satisfied?
Are the interest rate of credit and charge of 5 5 6 2 2
deposit of southwest bank satisfied?
Are the overall performance level of southwest 10 4 3 2 1
bank satisfied?

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 Customer satisfaction level of SEBL
60

50

40

30

20

10

0
Strongly Satisfied Satisfied Neutral Dis- Satisfied Strongly dis-satisfied

Chart- 14: customer satisfaction level

Source: secondary data.

Comparison:

To analysis those information, we would say that the customer satisfaction level of rupali
bank limited is more than a private bank (southwest bank limited). There are some issue in
rupali bank, which helps it meet the customer needs, want and help to achieve its goals, like
as:

 More secure
 Lower cost and
 Different social responsibility etc.

Those type of elements are absent to the private banking sector. But some sector of the
private bank are more efficient than the sate-owned bank, those things are helpful to achieve
its goals.

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Chapter 5
Findings

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Finding:

The effect of credit is very much vital for a financial institution. Different types of credit
schemes serve as the major source of revenue generation for the bank, and this process need to
be handled with a lot of care. Successful credit application will have a positive impact to attain
the mission and vision and ultimately to develop the wealth maximization objectives of the
bank. This report deals with different type of credit for consumers of rupali bank limited. The
credit schemes of the rupali bank limited, helped to achieve a great deal with the high
performance. The rupali bank has been able to retain its high performance through different
type credit products, such as: SME credit, business instalment credit, mortgage and personal
credit for its consumers. During my internship period, several findings of the bank, which found
are given below:

 The performance of rupali bank limited is constantly expanding and improving.

 The credit department of the rupali bank limited is enable to ensure a smooth credit
system.
 The employee of the rupali bank limited pay enough time and proper attention during
the credit sanction to the customer.
 The rupali bank limited creates a strong brand image to the customer by providing the
better service.
 It is a state-own financial institution, that’s way it maintain the proper guideline of the
government and Bangladesh bank.
 The capital reserve of the bank is increasing over the previous period, which contain a
strong positive corporate image.
 It impose high charge to the online transaction and the credit.
 It has the enough capacity to provide the credit and id maintain the liquidity to the bank.
 Although the current offering of rupali bank limited for the personal credit is a lucrative
but still there is a scope for further improvement which would be beneficial for the bank
and the clients.
 The loan sanction process of rupali bank limited is very lengthy.
 Most of the time it provide the loan to the big industrial sectors, they ignore the SME
sectors and agriculture sector, which pay a vital role in development of the country.
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  The loan disbursement process of rupali bank limited is approved by the head office,
which creates the problem for the branch to choose the right person.
 The employee of the bank and related person need to be trained for the increases of the
betterment service.

Every financial institutions like, rupali bank limited has been played an imperative role in
strengthening the economic infrastructure of the country. Day by day the number of credit
applicant is increasing for the product of the rupali bank limited. The performance of the rupali
bank Limited’s product shows the clear indication about the increasing trend of the products
customer base. However, during my internship period I try to identify some loopholes of the
program which needs special attention. I hope that, if the existing problems are addressed
properly the bank will be able to expand the program as per their target and it will continue to
provide more revenues in maximizing the wealth of the bank.

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 Chapter 6
Recommendation and
Conclusion

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Recommendation:

We know a word that the rupali bank limited is a well-known state bank in the country, for
providing the better service. I find out some sectors where it necessary to develop, during my
internship period, my observation and discuss with the clients and employee, like as:

 To decentralized the credit section of the bank.

 Apply the proper online banking facilities.
 Credit is the most crucial part of the bank, that’s way it need to train or expert person
to handle the credit process.
 Credit sanction of the bank is too much lengthy, which creates the customer demotivate
so it need to sanction the credit in short time.
 To upgrading the skills of the employee, it need to attain the seminar and various
training program.
 They should try to provide the credit to all the economic sectors (SME, Agriculture,
etc.) Not to a particular sector.
 It should reduce the cost of interest, which creates attract to the clients.

The rupali bank should prepare a comprehensive manual, which known as “Credit Operations
Manual” which should be practiced in every sphere of credit activities.

A team constituting key individual from various divisions of the rupali bank will prepare the
Manual under direct of supervision of General Manger, Operations and Administration of the
Bank. Then the report will be sent to Managing Director for reviewing again. Finally, Board
of Directors of the bank will finalize the Credit Manual. Then The Credit operation manual
should be sent to every Branch of rupali bank limited for implementation of standard practices.
The credit manual will be updated continually by issuing circulars to branches.

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Conclusion:

Rupali bank limited is a type of bank, which has to do a lot of things for the betterment of our
country. In spite of competition among the bank operating in Bangladesh, rupali bank limited
crate a strong position in the market and try to use its core strengths, so that it can match the
shareholders’ expectations and thus raise their wealth in future through ethical banking and
best pricing to their customer. Recently it achieved a satisfactory progress in the area of its
operating and earned an impressive operating income over the previous years. Rupali bank
limited has to take an initiative, so that it can meet the desire of the govt. and the desire of the
people. The bank try to enhance more public services and build up working teams, which
ensure to provide the best services to the bank’s customers and related person. As well as the
bank try to achieve a satisfactory level of progress in all sectors of the bank. Especially the
credit division of the bank is very much qualify and try to provide the best service to the clients.
The bank always try to compare the performance with another bank, by the process of compare
the bank find out the customer expectation and their service quality, if there find any gap the
bank try to take the proper step to reduce the problem and ensure the better service to the clients.
We live in Morden age. We cannot think our daily life without online activities. Online
Banking is the demand of today’s dynamic world, to fulfil the demand the rupali bank limited
is heading towards implementation of online banking. During the sanction of credit the bank
try to ensure the profitability of the bank and analysis the creditability or credit worthy of the
client. At last, say that the rupali bank stand successfully in this competition era for its strengths
and commitment to assure the best service to the clients.

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 Chapter 7
Bibliography

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Bibliography:

Web site: www.rupalibank.org

https://quotes.wsj.com/BD/XDHA/RUPALIBANK/financials/annual/balance-sheet

https://quotes.wsj.com/BD/XDHA/RUPALIBANK/financials/annual/income-statement

Annual report of rupali bank limited.

Several booklets of rupali bank limited.

Several booklet of rupali bank limited.

Several internship report on rupali bank limited.

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