Welcome to my presentation
Golam Saroar ParvezID: 103-11-1736
Topic
“Deposit and Loan Products of National Credit and Commerce Bank Limited’’
Objectives of the Report
To identify the lending procedures maintained by NCCBL.
To identify various types of deposit and loan products of NCCBL.
To identify some problems and provide suggestions related to Deposit and Loan products of NCCBL
Deposit
Deposits are the foundation on which banks thrive and grow, that distinguishes it from other types of business firms. Deposits provide most of the raw material for bank loans and, thus represent the ultimate source of bank profits and growth.
Products & Services of NCCBL
Deposit products: Current A/C Savings bank deposit A/C Special notice deposit A/C Term deposit A/C Premium term deposit A/C Instant earnings term deposit
Deposit products:
Special savings scheme Money double program Money triple program NCC Bank Youngster Money plant Scheme NCC Bank Youngster Account NCC Bank Youngster Maximums AccountInterest Rate: (6% - 8%) FDR:(8%-10%)
Loan
Lending of money to different kinds of borrowers is one of the most important functions of commercial bank. Not only this it is the most profitable business of the commercial bank and the major source of income but lending is a risky business. The nature of their activities, the location of business, financial stability, earning and repayment capacity, purpose of advance, securities all differ and their degree of risk also differ.
Sources of Credit Information
Required information about a prospective borrower from the following sources
Loan Application Market Reports Study of Account Financial Statements and Personal Interview
Lending procedures
To do the lending business profitable the following procedures may be followed
Purpose Liquidity Security Profitability Spread/ Diversification National interest/Social interest
Loan and Advance Products:
Working Capital Finance (15.5%-17%) Commercial and trade finance (15.5%-
18.5%) NCC Nari Shabolombi Scheme (10%)
Long term capital finance (15.5%-18%) House and consumer finance (17%-18%)
Loan and Advance Products:
Retail and consumer finance: (18%-18.5%) SME finance Agricultural finance: (13%) Import & Export finance: import (15.5%), export
(7%)
Retail / consumer loan product:
Personal loan Car loan Education loan House building loan Consumer finance scheme House repairing & renovation loan House improvement loan.
Cards:
Credit cards: (2.5% per month) Debit cards mBridge cards
Findings
Tries to provide quality services to the known clients.
Process of sanctioning loan is very lengthy. ATM booths are very few. Interest rate of some loan products are high
(3,4,5) NCCBL website is not sufficient to provide all
information about every type of deposit and loan products.
Recommendations The bank should introduce batter services for all
customers The bank should introduce new technology based
services NCCBL should increase their ATM booth and
related services Detailed Manual should be prepared for accurate
deposit and loan operations Bank should incorporate important information in
their website.
Conclusion
National Credit and Commerce Bank Limited has started their journey as a full-fledged commercial bank in 1993. It plays a significant role in various fields in the economy such as industry, trade & commerce, transportation, deposit mobilization etc. They have to increase their branch network. NCCBL should expand their online banking service at least for key business areas.
BIBLIOGRAPHY
Annual report of NCCBL (2010-2011-2012-2013)
Peter S Rose, “Commercial Bank Management” Richard D. Irwin INC 1991, 5th Edition.
Hai. M. Enamul. “Bank Management”
Open Session
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