Letter of Transmittal

May 10th, 2010

Afsana Akhter, Senior Lecturer
Shamim Ehsanul Haque, Lecturer
BRAC Business School
BRAC University

Dear Sir and Madam,

With great pleasure I submit this internship report that I have been assigned to us as an important requirement of BBA program at BRAC University. I have found the study to be quite interesting, beneficial and knowledgeable. I have tried my level best to prepare an effective & creditable report.

This report is about the Credit Analysis of the Credit Department of Dhaka Bank Limited.

I also want to thank you for your support and patience with me and I appreciate the opportunity provided by BRAC University and Dhaka Bank Limited to work on this wonderful project.

Yours sincerely,

Emran Hussain (ID – 06204025)


I would like to express my gratitude to all the people that were involved both directly and indirectly in the preparation of this report. I apologize to the people whose names that I have not mentioned, and their contribution is highly appreciated by me.

At first, I would like to thank my academic supervisor Afsana Akhter – Senior Lecturer, BBS, BRAC University – for guiding me and for giving me the opportunity to initiate this report. More specifically, I would like to thank her for imparting her time and wisdom.

I want to thank all the officials of Dhaka Bank Limited that were involved. I would especially like to thank Zahedul Matin (AVP), Mehreen Islam (AVP) and ATM Obaidullah (SO) of Uttara Branch for giving me time and sharing their thoughts and insights regarding their credit strategies and their bank as a whole. I would like to thank them for giving me the required information to commence this report and for providing the permission to do the required research work.

I also would like to give my gratitude to a very important person who has made it all happen for me at Dhaka Bank Limited - Mr. Khondker Fazle Rashid (Managing Director).
Finally, I would like to thank my parents and my sisters whose influence and inspiration has enabled me to complete this report.

Table of Contents

Executive Summary


History of Banking
History of Private Banks in Bangladesh
Current Structure of Banks in Bangladesh
Bangladesh Economy 2009
Banking Sector 2009

Part 1 - Organization Overview
1.1 Overview of Dhaka Bank Limited
1.2 Organizational Overview of DBL, Uttara Branch
1.3 Mission and Vision of DBL
1.4 Values of DBL
1.5 Visions for 2010
1.6 Corporate Social Responsibility
1.7 Corporate Information
1.8 Departments of DBL
1.9 Organizational Structure of DBL
1.10 Organizational Hierarchy
1.11 Organogram of Uttara Branch
1.12 Products of DBL
1.13 Services of DBL
1.14 Other Products and Services

Part 2 – My Job at Dhaka Bank Limited, Uttara Branch
2.1 The Nature of the Jobs and my Specific Responsibilities
2.2 Observation

Part 3 – Analysis of Credit Department of Dhaka Bank Limited
3.1 Introduction
3.2 Credit Rating Report
3.3 Functions of the Credit Department
3.4 Overall Credit Policy of DBL
3.5 Types of Loans and Advances
3.6 Overdraft
3.7 Import Financing
3.8 Export Financing
3.9 Bank Guarantee
3.10 Impaired Asset Management Department
3.11 Ratings and Obligors of Dhaka Bank
3.12 Credit Assessment
3.13 Risk Grading
3.14 Reporting to Business Unit
3.15 Rejection Database
3.16 Automation
3.17 The Process of Giving Credit
3.17.1 Loan Sanction Activities
3.17.2 CIB Obtaining Process
3.17.3 Sanction Letter
3.17.4 Disbursement of Loan
3.17.5 Loan Account Opening and Activation
3.17.6 Pre Disbursement Activities
3.17.7 Post Disbursement Activities
3.17.8 Recovery Activities
3.17.9 Document and Deficiency and Problem Solving
3.18 Approval Process
3.19 Approval Authority
3.20 Registered Mortgage
3.21 Insurance Premium Checking Risk issues

Part 4 – Findings and Analysis
4.1 SWOT Analysis
4.2 Financial Highlights
4.3 Competition Analysis
4.4 Customer Satisfaction

Part 5 – Recommendations and Conclusions



Executive Summary

This report is based on the Credit Analysis of Dhaka Bank Limited (DBL).

Internship program is the pre-requisite for the graduation in BBA. Classroom discussion alone cannot make a student perfect in handling the real business situation; therefore, it is an opportunity for the students to know about the real life situation through this program. A report has to be built for the university and organization requirement. The topic of the report is “Credit Analysis of Dhaka Bank Limited”. The main purpose of the report becomes very clear from the topic of the report. The report discusses about the different credit facilities, approval process, monitoring and performance.

This report is broadly categorized in six different parts. At First there is prefatory where I describe the banking sector and Bangladesh’s economy along with introduction, objective, scope, limitation and methodology.. The main objectives of the report are identifying the credit approval and monitoring and their overall performance in the last few years. Part one narrates the company profile including Dhaka Bank’s history, their vision, mission and strategy, products and services, activities and performances. Part 2 describes the different aspects of my job at DBL Uttara. Part three forces on the literatures behind banking credit. It includes services of banking sector, different loan categories, and credit analysis, loan review and handling default loans. It also describes in details about the procedure of sanctioning credit, loan documentation, and execution, stamping witness and other legal formalities. It also describes the issuance of different bank guarantees. Findings and analysis of the information are in Part five of the report. It includes outstanding, recovery, and classified loan ratios. Difference between the outstanding and the classified loans in different sectors over the last four years are also analyzed. It also includes the summery of findings. Findings of the report say about the prior and neglected sectors of the credit facilities. It also contains the outstanding, recovery and classified loan status in different sectors over the past few years. The last part ends with competitive analysis, SWOT Analysis, recommendations and conclusions.