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Internship report on

“An Evaluation of SME Loan Distribution of IDLC Finance Ltd. in Bangladesh”

Submitted To:

M. M. Baset Oli Mishkat

Lecturer

Faculty of Business Administration

EAST WEST UNIVERSITY

Submitted By:

Moh. Naim Mahmud

ID: 2011-02-10-001

Major: Finance EAST WEST UNIVERSITY

Date of Submission: December 15, 2015

EAST WEST UNIVERSITY

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INTERNSHIP REPORT ON

“An Evaluation of SME Loan Distribution of IDLC Finance Ltd. in Bangladesh”

Supervised By:

M.M. Baset Oli Mishkat

Lecturer

Faculty of Business Administration

EAST WEST UNIVERSITY

Submitted By:

Moh. Naim Mahmud

ID: 2011-02-10-001

Major: Finance

EAST WEST UNIVERSITY

Course: Internship

Course Code: BUS 499

Date of Submission: December 15, 2015

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Part- One

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Letter of Endorsement

The Internship Report entitled “An Evaluation of SME Loan Distribution of IDLC Finance Ltd.

in Bangladesh “has been submitted to the Office of Placement by Naim Mahmud, ID: 2011-2-

10-001, Major in Finance in Fall-2015 for partial fulfillment of the requirements of the degree of

Bachelor of Business Administration in East West University. The report has been accepted and

may be presented in Presentation. (Any opinions, suggestions made in this report are entirely that

of the author of the report. The University does not condone nor reject any of these opinions or

suggestions).

---------------------------------

M.M. Baset Oli Mishkat Internship Supervisor

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LETTER OF TRANSMITTAL

December 15, 2015.

M.M. Baset Oli Mishkat

Lecturer

Department of Business Administration

EAST WEST UNIVERSITY.

Subject: Submission of Internship Report on “An Evaluation of SME Loan Distribution of

IDLC Finance Ltd. in Bangladesh”

Dear Sir,

Following the successful completion of my internship report I am happily submitting it for your

scrutiny. The internship report is prepared as titled “An Evaluation of SME Loan Distribution of

IDLC Finance Ltd. in Bangladesh “A study on Corporate Branch, Dilkusha , Dhaka. I have

observed very keenly and carefully assimilate in myself how actually a Non-Banking Financial

Institution the vital organ of the economy works. I have tried to paste my theoretical knowledge

that I have gathered in my BBA study on this practical expertise.

I gratefully acknowledge your assigning me this topic to work on and your guidance in

completing the report. Working on this report has not only helped me to know many aspects of

Non-Banking Financial Institutions services but also helped to apply the class-room learnt

theories in real life. I also thank you for your valuable suggestion and support.

Sincerely yours,

……………………...

Moh. Naim Mahmud

ID: 2011-2-10-001

Program: BBA

Major: Finance

EAST WEST UNIVERSITY

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ACKNOWLEDGEMENT:

First of all, I want to express my all humble thanks to God who is very sensitive about each and

every activities of all his men and without whose help, I am unable to accomplish any objective

in my life Who blessed me with an opportunity to get internship training in IDLC Finance Ltd.

Secondly, I am grateful to my prestigious institute that made this learning opportunity a part of

our education. I would like to convey my heartfelt thanks to my honorable teacher and supervisor

M.M. Baset Oli Mishkat, Lecturer who not only guided me well but also carefully suggested and

supported me to complete this report. It is worth mentioning to utter the name of my all

respectable teachers as the knowledge imparted by them enables me to gain knowledge of the

organization in the best way.

From IDLC Finance Ltd., I would like to express my gratitude toward to take me as intern in the

organization. I would like to thanks my immediate supervisor in IDLC Finance Ltd. Mr. Adnan,

Misses Deeba, Mr. Rakib, Mr. Tazul, Mr. Arafat and so more for assigning me different type of

work to give me maximum exposure in minimum assigned internship period from the university.

I want to pay gratitude to all persons, who had helped me in completing this internship.

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EXECUTIVE SUMMARY IDLC Finance Ltd. is one of the first generation private sector Non-Banking Financial

Institutions (NBFI) in 1985 through the collaboration of International Finance Corporation (IFC)

of the World Bank, German Investment and Development Company (DEG), Kookmin Bank and

Korean Development Leasing Corporation of South Korea, the Aga Khan Fund for Economic

Development, the City Bank Limited, IPDC of Bangladesh Limited, and Sadharan Bima

Corporation. And has since been able to establish one of the largest network of 31 branches na

booths in different division. IDLC Finance Ltd. Offers all kinds of Commercial Corporate and

Personal loan services covering all segments of society within the framework of Non-Banking

Company Act and rules and regulations laid down by Bangladesh bank. Diversification of

products and services include Corporate, Retail and Consumer loan right from industry to

agriculture, and real state to software.

General Banking is the starting point of all the banking operating. It is the department, which

provides day-to-day services to the customers. General Banking consists of the many sections in

the branch. These are including customer service, brokerage account opening/closing,

remittance, deposit department, account’s department.

General Advance provides loan and advance products to the client for financing different

purpose that fulfill the requirements of the institution and have good return to the investment as

well as satisfy the client. The loan and advance products are personal loan scheme, small &

medium enterprise loan, working capital financing, import financing, export financing, syndicate

loan, industrial financing etc.

IDLC Finance Ltd. is the preferred choice in banking for friendly and personalized services,

tailored solutions for business needs, global reach in trade and commerce and high yield on

investments, assuring Excellence in Services.

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TABLE OF CONTENTS

CHAPTER ONE

1.0 Introduction………………………………………… 1

1.1 Background Of The Study………………………….. 1

1.2 Statement Of The Problem…………………………. 1

1.3 Objective Of The Study…………………………….. 2

1.4 Significance Of The Study…………………………. 2

1.5 Design Of The Study……………………….………. 3

1.5.1 Data Collection……………………………………... 3

1.5.2 Data Analysis………………………………………. 3

1.6 Organization Of The Study………………………… 4

CHAPTER TWO

2.0 Overview Of The Organization……………………. 5

2.1 Brief History………………………………………... 5

2.2 Vision, Mission And Values ……………………….. 6

2.3 Key Milestones……………………………………... 7

2.4 Shareholding Composition Of Idlc Finance Ltd…. 10

2.5 Nature Of The Organization………………………... 11

2.6 Product Lines………………………….……………. 11

2.7 Business Volume…………………………………… 14

CHAPTER THREE

3.1 Review Of Literature……………………………….. 15

CHAPTER FOUR

4.1 Analysis And Findings……………….…………….. 17 4.2 In The Year 2014…………………………………… 17 4.3 In The Year 2013…………………………………… 22 4.4 In The Year 2012…………………………………… 27 4.5 Comparison Between The Year 2014 And The Year

2013 32

CHAPTER FIVE

5.1 Lessons Learned In The Internship Program 37

5.2 Lesson Learned…………………….………… 37 5.3 My Worksheet……………………………………… 39

CHAPTER SIX

6.0 Conclusion, Limitation & Recommendations 42 6.1 Conclusion……………………………………….. 42 6.2 Limitation…………………………………………. 43 6.3 Recommendation…………………………………. 44 References……………………………………… 45 Appendix………………………………………... 46

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List of Tables & Figures

Tables

Table 1: Segment-Wise Disbursement 2014 …………………………………………. 17

Table 2: Sector Wise Disbursement 2014……………………………………………... 18

Table 3: Segment-Wise Disbursement 2013…………………………………………... 22

Table 4: Sector Wise Disbursement 2013……………………………………………... 23

Table 5: Segment-Wise Disbursement 2012…………………………………………... 27

Table 6: Sector wise Disbursement March 2014………………………………………. 28

Table 7: Segment wise Disbursement Between Year 2014 and Year 2013…………… 32

Table 8: Sector Wise Disbursement Year-Wise……………………………………….. 33

Table 9: My Worksheet ………………………………………………………………. 39

Figures

Figure 1: Segment-Wise Exposure 2014………………………………………………. 18

Figure 2: Sector Wise Exposure Of SME Financing Of IDLC In 2014……………….. 21

Figure 3: Segment-Wise Exposure 2013………………………………………………. 22

Figure 4: Sector wise Exposure of SME Financing of IDLC in 2013…………………. 26

Figure 5: Segment-Wise Exposure 2012………………………………………………. 27

Figure 6: Sector wise Exposure of SME Financing of IDLC in 2012…………………. 31

Figure 7: Yearly Segment-Wise Exposure…………………………………………….. 33

Figure 8: Yearly Change In Sector Wise Exposure Of SME Financing Of IDLC…….. 36

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List Of Abbreviation

SME: Small Medium Enterprise

NBFI: Non-Banking Financial Institute

IFC: International Finance Corporation

DEG: German Investment and Development Company

LEIC: Local Enterprise Investment Centre

CIDA: The Canadian International Development Agency

SEF: Small Enterprise Financing

MEF: Medium Enterprise Financing

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Part -Two