welcome to my presentation

Presented by

Hasan Md. Khalid ID:08-11024-2

Supervised By M. Taseen Chowdhury Assistant Professor

A Presentation On Loan Disbursement and Recovery

System Of National Credit and Commerce Bank

( NCCBL)

Company Overview

National Credit and Commerce Bank limited came to reality through the “National Credit limited”.

It made its January on 25th November 1985 at its registered office and first branch at 7-8 Motijheel with initial authorized capital of tk. 30 crores.

It has 87 branches all over the country.

Objective of the Report

To get real life experience from the organization

To assess the credit structure of the bank in practice.

To identify the recovery performance of the bank.

To compare the credit supervision of the bank.

To find out problems and suggesting recommendations for further improvement.

Methodology

Primary sourcesFace to face conversation with the respective officer. Informal conversion with clients. Exposure on different desk of the bank

Secondary sources Annual reports of NCCBLResearch paperOfficial website

Organizational Hierarchy

Products & Services of NCCBL

Deposits Loan & advances Credit card SME banking Remittance services International trade/Foreign exchange Other services (Internet banking, Locker service,etc)

Lending Products of NCCBL

Cash credit (CC)Loan against InvestmentHousing LoanProject LoanTransport LoanSmall Business Loan SchemeHouse Repairing/Renovation Loan SchemeCommercial and industrial loansOther Loans (farmers, other bank, non bank financial institutions )

Credit Policy of NCCBL

Eligibility to get loanAmount of loanPurpose of lendingWhere to financePossibility of recovery loan

General Procedure of Loan Disbursement

Getting Credit Information Information CollectionAnalyzing These InformationLending Risk Analysis (LRA)Proposal AnalysisFinal Decision about the ProjectProper Supervision of the ProjectDocumentation of the LoanPreparations/Processing of Credit ProposalCredit Disbursement

Interest Rate

Particulars Rate Cash Credit 13%

House loan 13% p.a. Up to tk. 50 lac (Maximum)

Fixed Deposit 12% p.a

Savings Bank Deposit A/C

6.00% - 7.00%

Small Business Loan 17%

Recovery Procedure of Loan

Reminder NoticesTelephone CallsPhysical VisitSocial PressuresLegal NoticeLegal Action

Loans & Related Performance of NCCBL

(2007 - 2011)

SWOT AnalysisStrength:Competitive SalaryTraining instituteEfficient management

Weakness:Limited workforceReluctance to advertisement campaignSo many areas in the country are still out of their

network

Opportunities:Huge business areaEvaluation of E-Banking

Threats:Political unrestEmergence of competitorsPoor telecommunication infrastructure

RecommendationNCCBL have to more conscious about market study prior to lending

credit and maintain industry related data as well

NCCBL should improve its internal accounting system as well as encourage business firms to keep financial records as per prevailing standard of accounting.

The NCCBL can encourage investment in small and cottage industry in rural area.

The NCCBL might take to go for on-line banking system more widely to its client all over Bangladesh.

The NCCBL also need to encourage investment in agricultural sector to stay in competition with other private banks.

Measures should be taken for the NCCBL to create awareness among the borrowers regarding the importance of credit facilities