Evaluation of Credit Management System of

Trust Bank Limited

Submitted by

WWW.ASSIGNMENTPOINT.COM

Trust Bank Ltd.

1.1Work Study:

I have work in Trust Bank Limited, Karwan Bazar Branch for three months as an internship student. I work in several departments. All sections were new to me. I was not familiar with them. At first I have joined in the Account Opening Department. I have tried to know about the responsibility of this department and the works perform by this department. In this way I work in Cash Department, Financial Control and Accounts Department (FCAD), Foreign Exchange Department, Credit Department, Clearing Department and Remittance department. In every department I have got new things. I have tried to learn and record all this things. I have also tried to match with my knowledge, which I have acquired throughout my academic period. Whenever I was facing any problem I asked them and they always helped me. In this way, I passed the internship period.

1.2Background of the study:

Now days, education is not just limited to books and classrooms. In todays world, education is the tool to understand the real world and apply knowledge for the betterment of the society as well as business. From education the theoretical knowledge is obtained from courses of study, which is only the half way of the subject matter. Practical knowledge has no alternative. The perfect coordination between theory and practice is of paramount importance in the context of the modern business world in order to resolve the dichotomy between these two areas. Therefore, an opportunity is offered by Department of Finance Asian University of Bangladesh, for its potential business graduates to get three months practical experience, which is known is as Internship Program. Internship Program brings a student closer to the real life situation and thereby helps to launch a career with some prior experience.

I have completed my BBA from Asian University of Bangladesh from the department of Finance. After completion of that it is mandatory for all students to make internship from a valuable organization. I have completed my internship from Trust Bank Limited (TBL). In these three months I have learned many things from there. Internship report is a part of BBA program.

1.3Objective of the Study:

The objective of the study is to fulfill the requirement of BBA program as well as to gain practical exposures about Evaluation of Credit Management System of TBL. In line with the broad objective, the detailed objectives of the study may be spelled out as follows:

To have a practical orientation of the job market;

To gather knowledge about the practical application of the financial systems;

To examine the effectiveness of accounting as an information system;

To present an over view of TBL;

To analyze the lending procedure maintained by TBL;

To observe principle lending activities of TBL;

To evaluate the lending performance of TBL;

To measure the actual position in classified loan and provision maintained by TBL;

To appraise the actual recovery position of TBL;

To identify problems in credit operation of TBL;

And finally to recommends suggestions for the successful credit operation of TBL.

1.4Coverage of the study:

I mainly emphasized on the current account system of TBL. Therefore, I mainly concentrate on the credit department of this organization. This report tells about the responsibilities of different department and mainly the performance of Credit department. In addition this report has covered the institutional background of TBL and many other information of TBL.

1.5 Methodology of the Study:

The study is performed based on the information extracted from different sources collected by using a specific methodology. I have two types of data in this report. These are primary data and secondary data.

Primary Sources:

Face-to-Face conversation with the respective officers and staffs;

Interviewing officers and staffs;

Sharing practical knowledge of officials;

Relevant file study provided by the officers concerned;

In-depth study of selected cases.

Secondary Sources:

Annual Report of TBL;

Audit Reports;

Website;

Relevant books, Research papers, Newspapers and Journals;

Internet and various study selected reports.

Justification of the Study:

There are three types of schedule commercial banks are in operation in our economy. They are Nationalized Commercial Banks, Local Private Commercial Banks and Foreign Private Commercial Banks. TBL has discovered a new horizon in the field of banking area, which offers different General Banking, Investments and Foreign Exchange banking system. So I have decided to study on the topic Evaluation of Credit Management System of TBL. Because the Internship program of the university is an integral part of the BBA program. So it is obligatory to undertake such task by the students who desirous to complete and successfully end-up their BBA degree. This also provides an opportunity to the students to minimize the gap between theoretical and practical knowledge. During the internship program the teachers of the department are attached to actively and constantly guide the students. Students are required to work on a specific topic based on their theoretical and practical knowledge acquired during the period of the internship program and then submit it to the teacher. That is why I have prepared this report.

Limitation of the Study:

From the beginning to end, the study has been conducted with the intention of making it as a complete and truthful one. However, many problems appeared in the way of conducting the study. During the study, it was not possible to visit the whole area covered by the bank although the financial statements and other information regarding the study have been considered. For preparing this report, I have the following limitations:

All the branches of the sample bank were not physically visited;

All the concerned personnel of the bank have not been interviewed because of the time constraints of the officials;

Lack of in-depth knowledge and analytical ability for writing such report;

This is my first internship report. So I have some lack of experience;

The time period for this study was short;

Inadequacy and lack of availability of required Current data;

Official secrecy of TBL.

Trust Bank Ltd.

2.1Institutional overview:

Trust Bank Limited is a scheduled commercial bank established under the Bank Companies Act, 1991 and incorporated as Public Limited Company under the Companies Act, 1994 in Bangladesh on 17 June 1999 with the primary objective to carry on all kinds of banking businesses in and outside Bangladesh. The Bank has Thirty five (35) branches operating in Bangladesh as 30th October 2008.

Initially bank has started its operation in the name of The Trust Bank Limited but on 12 November 2006 it was renamed as Trust Bank Limited by the Registrar of Joint Stock Companies. The new name of the bank was approved by Bangladesh Bank on 03 December 2006. Composition of the Board of TBL consists of Ex-officio Directors of in-service senior Army personnel, with the Chief of Army Staff as its Chairman and the Adjutant General as its Vice-Chairman.

In addition to ensuring quality customer services related to general banking the bank also deals in Foreign Exchange transactions. In the mean time the bank has extended credit facilities to almost all the sectors of the countrys economy. The bank has plans to invest extensively in the countrys industrial and agricultural sectors in the coming days.

It has also plans to promote the agro-based industries of the country. The bank has already participated in syndicated loan agreement with other banks to promote textile sectors of the country. Such participation would continue in the future for greater interest of the overall economy. Keeping in mind the clients financial and banking needs the bank is engaged in constantly improving its services to the clients and launching new and innovative products to provide better services towards fulfillment of growing demands of its customers. Recently the bank has changed its logo. The bank believes the new logo is the symbol of dynamism automation and trust.

Previous Logo New Logo

2.2Corporate Information:

Banking License received on

:

15 July 1999

Certificate of Incorporation received on

:

17 June 1999

Certificate of Commencement of Business received on

:

17 June 1999

First Branch License received On

:

9 August 1999

Formal inauguration on

:

29 November 1999

Sponsor Shareholders

:

Army Welfare Trust

Listed with DSE

September 25, 2007

Listed with CSE

September 24, 2007

Organization:

Head office : Dhaka

Department : 8

Branches : 35(as on 20 October 2008)

Employees : 508 (as of 31 December 2007)

Capital Structure and Sources of Fund:

Authorized Capital:

20,000,000 ordinary shares of Tk.100 each 2,000,000,000

Issued, Subscribed and Paid up Capital:

5,000,000 ordinary shares of Tk. 100 each 500,000,000

Other sources of Banks fund are