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Internship Report On

Credit Risk Management of BANK ASIA Limited.

Prepared for

Bohi Shajahan
Shemme, Sidra Islam
Prepared by

Date of Submission : 04 December,2013


ID No: 09-15101-3
Department of Finance,
Letter of Transmittal
04 December 2013
Mr. R. Tareq Moudud, FCMA
Director, Office of Placement & Alumni (OPA)
American International University-Bangladesh
Banani, Dhaka.
Subject: Submission of Internship report on Credit Risk Management of BANK ASIA
Dear Sir,
First of all I would like to thank you for assigning me this subject to prepare the internship
report. I am submitting a well-structured & comprehensive internship report on Credit Risk
Management of BANK ASIA Limited. which has been prepared for partial fulfillment of the
requirements for the degree Bachelor of Business Administration. Despite many constraints like
limited time, scope & access to information, I have tried to create something satisfactory.
In making this report I have tried to follow your guideline in every aspects of preparing this
report. I have concentrated on the most relevant & logical areas to make my report coherent as
well as practical.
I hope this report will entice your kind appreciation.
Thank you,
Sincerely yours
American International University-Bangladesh


Letter of Endorsement

This is to certify that Sidra, Shemme Islam is a student of BBA, ID# 09-15101-3 successfully
completed her Internship Program entitled Credit Risk Management of BANK ASIA
Limited. under my supervision as the partial fulfillment for the award of BBA degree.
She has done her job according to my supervision and guidance. She has tried her best to do this
successfully. I think her program will help her in the future to build up her career. I wish her
success and prosperity.

Bohi Shajahan
Department of Finance
Faculty of Business Administration
American International University-Bangladesh.


Students Declaration

I do hereby declare that the work presented in this internship report titled Credit Risk
Management of BANK ASIA Limited. is an original work done by me under the guideline of
Bohi Shajahan, Department of Finance, Faculty of Business Administration, American
International University-Bangladesh
No part of this report has been previously submitted to any other University/ College/ Institution/
Organization for any academic certificate /degree/diploma certification.
The work I have presented does not violate any existing copyright and no portion of this report is
copied from any work done by anyone.
The content of the report or the financial information collected from secondary source. If any
misinformation appears in this report, the Bank has no more liable for this. I am responsible for
this misinformation.

ID No: 09-15101-3
Department of Finance,
American International University-Bangladesh


Initially, I would like to express my gratitude to Allah to give me the strength to complete the
report within the stipulated time. With deep interest I had started my work. My Internship
Program is just a part of BBA under the Dept. of Business Administration, American
International University-Bangladesh, but I had gathered practical knowledge about the Credit
Risk Management of Bank Asia Limited.
With due respect I remain all the teachers of my department, who have significant contribution
behind merging Internship program in BBA curriculum. I am greatly indebted to Bohi
Shajahan, who has supervised instructed & directed me to complete Internship program. Without
the special guideline of her, it would be impossible to complete my internship report
My sincere gratitude goes to S. M. Salahuddin (AVP) and Head of Bank ASIA Limited,
Rupnagar Branch & Ali Adnan (EO), Manager Operation for giving me the opportunity to work
in his branch.
There is no doubt that, because of their help, I, as an inexperienced person was able to
accomplish the report. These persons gave me their valuable time whenever I needed their help.
This report is so a blessing of the individuals who gave the valuable information of their banks.

The credit proposal consists mainly of a brief description of the borrower, purpose of the loan,
collateral, and expiry of the credit line, amount, interest rate and the result of the credit analysis.
Executive Summary:
Banks are exposed to five core risks through their operation, which are-credit risk, asset/liability
risk, foreign exchange risk, internal control & compliance risk, and money laundering risk.
Among these risks management of credit risk gets most attention. Credit risk is an essential
factor that needs to be managed. Credit Risk Management needs to be a robust process that
enables banks to proactively manage credit portfolios in order to minimize losses and earn an
acceptable level of return for shareholders. Credit Risk Management has become an important
topic in banking and financial sectors. Risk is inherent in all aspects of a commercial operation;
however, for Banks and financial institutions, credit risk is an essential factor that needs to be
properly managed.
In formulating a credit judgment and making quality Credit Decisions, the lending officer must
be equipped with all information needed to evaluate a borrowers character, management
competence, capacity, ability to provide collaterals and external conditions which may affect his
ability in meeting financial obligations.
In this report I tried to review the existing credit risk management systems, credit risk grading
and assessment methods etc. for the bank. The report consists of my observation and on the job
experiences during the internship period in the Rupnagar Branch, Bank Asia Limited. The report
mainly emphasizes the sequential activities involved in credit approval process, analytical
techniques, risk management techniques adopted by Bank Asia both in pre-sanction and post-
sanction period of a credit. Finally the report incorporates an evaluation of the different aspects
of the lending process and risk management techniques and makes some recommendations.
Bank Asia follows some specific principals for its credit activities, which involve Know Your
Customer (KYC), safety, liquidity, profitability, purpose and spread. The lending procedure
followed by Bank Asia consists of a set of sequential activities. In these sequential activities,
both bank officials and potential borrowers play significant role.

The credit proposal is prepared to facilitate the approval of that particular loan either by
Corporate Office credit committee or by the Board of Directors.
Bank Asia does not have any fixed time duration to complete lending process for a particular
loan proposal. The total duration of the time required to complete the lending process varies with
the nature of credit, collection of information, nature of information, analysis of information,
preparation of the proposal, corporate office scrutiny, board approval, preparation of sanction
advice, creation and collection of charges documents and actual disbursement of loan.
Bank Asia must try to reduce the time required by a particular lending process to be completed.
The Higher the duration, the higher the loan processing cost.
Lending is the main income generating activity for all banks including Bank Asia. Lending
involves both risk and profit. But a sound lending process supported by quantitative analysis,
qualitative judgment and a separate credit monitoring cell can reduce the risk to a certain extent.
So far Bank Asia has maintained a very good loan portfolio and its lending process is reasonably
sound. Bank Asia will be able to manage its lending process and management techniques more
effectively and efficiently.


SL Particulars Page
Letter of Transmittal 1
Letter of Endorsement 2
Student Declaration 3
Acknowledgement 4
Executive Summery 5
Chapter: 1

1.1 Rational of the Report 9-10
1.2 Background of the Report 10-15
1.3 Objective of the Report 15
Chapter: 2

2.1 Work-Related 17-20
2.2 Organization-wide 20-25
2.3 Other Relevant Activities 26
Chapter: 3
3.1 Identified/observed in the organization 28-29
3.2 Academic Preparation 30
3.3 Knowledge & skills that need to be learned in the
Chapter: 4
4.1 Implications of Organization 33
4.2 Implication to Universitys Internship Program 34-35
Chapter: 5
5.1 Summary 37
5.2 Recommendations 38
Chapter: 6
Suggestion for Improvement or Course of Action
Appendices 42-49
References 50


Chapter 1


1.1 Rational of the Report
Credit risk management is a very important area for the banking sector and there are wide
prospects of growth and other financial institutions also face problems which are financial in
In order to cope effectively with the diversifying risk environment, we have built a risk
management framework by developing our risk management approach from a micro to a macro
perspective, and shifting our focus from minimizing losses from individual transactions to
maximizing corporate value. This framework is strongly linked to the management plan,
playing a critical role in supporting the efficient management of our corporate resources.
Credit risk management is risk assessment that comes in an investment. Risk often comes in
investing and in the allocation of capital. The risks must be assessed so as to derive a sound
investment decision. And decisions should be made by balancing the risks and returns. Giving
loans is a risky affair for bank sometimes and certain risks may also come when banks offer
securities and other forms of investments.
The risk of losses that result in the default of payment of the debtors is a kind of risk that must be
expected. A bank to keep substantial amount of capital to protect its solvency and to maintain its
economic stability. The greater the bank is exposed to risks, the greater the amount of capital
must be when it comes to its reserves, so as to maintain its solvency and stability.

For assessing the risk, banks should plan certain estimates, conduct monitoring, and perform
reviews of the performance of the bank. They should also do Loan reviews and portfolio analysis
in order to determine risk involved.

Banks must be active in managing the risks in various securities and derivatives. Still progress
has to be made for analyzing the credits and determining the probability of defaults and risks of
Credit risk management must play its role then to help banks be in compliance with Basel II
Accord and other regulatory bodies.

A risk management system will help an organization identify the risks and security issues
associated with their business and assets. Once these threats have been established, the RMS
should endeavor to measure the risks and prepare strategies to minimize them. These strategies
should be carried out and continuously monitored to ensure that they are effective and still
So credit risk management becomes a very important tool for the survival of banks.

1.2 Background of the report:
Bank Asia Limited is a schedule Bank under private sector established with in the ambit of Bank
Company Act, 1991 and was incorporated as a Public Limited Company under Company Act,
1994 on September 28, 1999. The Bank started commercial banking operations from November
27, 1999. In February 2001, Bank Asia took over the Bangladesh operation of The Bank of Nova
Scotia, the first acquisition of a foreign bank by a local bank in the banking history of
Bangladesh. Later, Bank Asia took over the Bangladesh operation of Muslim Commercial Bank
of Pakistan in December 2001. These courageous moves were possible for some visionary
decision makers and also dedicated team of professionals who are constantly putting their best
efforts to establish the bank as one of the leading concerns in the industry.
In the year 2003 the Bank again came to the limelight with oversubscription of the Initial Public
Offering of the shares of the Bank, which was a record (55 times) in our capital market's history
and its shares commands respectable premium.

Vision, Mission & Core Values:
Bank Asia is a third generation public limited commercial bank. It received the Certificate of
Incorporation on September 28, 1999 and came to operation on November 27, 1999. Now after
12 faithful years of dedicated and reliable services, Bank Asia has created an envious position for
itself among the leading banks of the country with an Asset base of TK. 117 billion, Deposit of
TK 95 Billion and 70+outlets all over the country. But most importantly, the Bank has an
unsurpassed legacy attached with its image.

Bank Asia's vision is to have a poverty free Bangladesh in course of a generation in the new
millennium, reflecting the national dream. Our vision is to build a society where human dignity
and human rights receive the highest consideration along with reduction of poverty.
To assist in bringing high quality service to our customers and to participate in the
growth and expansion of our national economy.
To set high standards of integrity and bring total satisfaction to our clients, shareholders
and employees.
To become the most sought after bank in the country, rendering technology driven
innovative services by our dedicated team of professionals.
Place customer interest and satisfaction as first priority and provide customized banking
products and services
Core Values:
Value addition to the stakeholders through attaining excellence in banking operations
Maintain high ethical standard and transparency in dealings

Be a compliant institution through adhering to all regulatory requirements
Contribute significantly for the betterment of the society
Ensure higher degree of motivation and dignified working environment for our human
capital and respect optimal work-life balance
Committed to protect the environment and go green.
Sustainable growth
Synergies between new knowledge and human capital for sustainable economic growth.
Capital stewardship
Preservation and enlargement of multiple forms of capital; like intellectual, natural, financial,
organizational, social; all of which contribute to long term value creation
Accelerating financial inclusion
Accelerate progress towards financial inclusion with technology like ATM, mobile phone, smart
card based banking services and renewable energy generation projects especially in rural areas.
Differentiating Value Added Services
Strong focus on extremely cost-efficient and green services through Internet banking, electronic
fund transfer, automated cheques clearing, e-bank statement, SMS alert etc.
Going Green
Quantification of in-house facilities and energy consumption to promote paperless office and
enhance energy efficiency. Greater emphasis on green banking projects.
Leader in business
Create new dimension in the syndication and structured financing.
Grow with export.
Well diversified portfolio.

Current Achievement of Bank ASIA Limited:
Best Bankers Award by the District Administration office, Jessore for significant role
in promoting Agricultural activities in Jessore Region.
Recognized by Bangladesh Bank as one of the Top 10 Commercial Banks for significant
contribution to Green Banking in Bangladesh.
Certificate of Merit from Institute of Cost and Management Accountants of Bangladesh
(ICMAB) for Best Corporate Award 2012.
Certificate of Merit from Institute of Chartered Accountants of Bangladesh (ICAB) for
Best Published Accounts and Reports 2011
2nd position for Best Published Accounts and Reports 2010 by ICAB
Certificate of Merit award by SAFA for Best Presented Accounts and Corporate
Governance 2010.

Bank Asia and Green Banking:
We aspire to establish us as a prominent institution that will operate to reach our long term
strategic objective to be a green, triple bottom line bank where every decision will be taken with
both financial and environmental considerations in mind. We have unified our sustainable
operations less than one roof by forming Green Banking Unit equipped with permanent
employees. Our Green Banking Policy Guidelines and Green Office Guide have been circulated
to all our employees for creating awareness on Green Banking activities & providing instructions
about conserving energy, water, saving paper, etc.

As a Bank we play an intermediary role between economic development and conservation of the
environment. Our Green Banking activities are on multidimensional areas which include both in-
house environment management and undertaking Green Financing towards supporting Green
Other Activities on Green Banking:
We have also incorporated environment friendly and resource saving initiatives into our banking
operations as follows:
Bank Asia has been one of the pioneers in introducing Online Banking and it covers 74
branches/ SME centers, 68 own ATMs, 2890 shared ATMs. Clients can also have access
to their accounts through Internet & Mobile Banking.
Bank Asia has been equipped with Bangladesh Automated Clearing House (BACH)
system since October 2010, which allows paperless cheque clearing.
Instruments of Green Banking offered by Cards Division include E-Statement, SMS
Banking, SMS Alert, Net Banking, E Fund Transfer, and Digital Attendance and E Mail
corresponding, which help reducing printing paper.
We are saving around 32% electricity (used for lighting purpose) by using the day light in
our Corporate Office. We have installed Solar panels in our 7 branches.
In an alliance with a Canadian firm AlertPay, Bank Asia is the first local bank to
introduce an easy online payment gateway service.
Bank Asia is the 10th private commercial bank to launch Express cash system which is
easier and faster domestic remittance service.

Bangladesh Bank Rating on Green Banking:
Bangladesh Bank has recognized Bank Asia as one of the top ten private commercial
Banks for their contribution to Green Banking activities across the country.
As our economy moves ahead, we believe financial institutions should undertake more
sustainable activities as we need to make the optimum utilization of our resources. We are
working forward to extend our reach for Green Banking Initiatives in the coming year and hope
to maintain our leading position.

To figure out The BANK ASIAs position in the banking industry.
1.3 Objectives of the report:
To get an idea on the overall performance of The BANK ASIA Ltd.
To overview the banks credit risks management.
To have a brief understanding on the CRM policies and procedures.
To understand of Credit Risk Grading & its assessment.
To outline Credit risk management framework.
To indicate Credit policies & dealings.
To understand how credit risk is measured.
To point out the opportunities of credit financing.
To highlight advantages & disadvantages of credit risk management.
To overview Credit risks monitoring and control.


Chapter 2
Activities Undertaken


Department: Credit
2.1 Work Related
Internship program evaluate the combination between our theoretical knowledge & Practical
knowledge. It gives us the opportunity to work practically. It will be very helpful to all of us
when we involve in job market.
A sensitivity of completeness runs through my veins when I identify myself working with the
brilliant professionals of the countrys leading financial institution.
To give an insight into the operational activities of the Bank, especially in the areas of Accounts,
General Banking, Advance and Foreign trade, the management decided to continue a job rotation
During the job rotation period level best efforts was given to be acquainted with the operational
activities of Bank.
Functions of the Department:
SME Loan:
To create SME loan general information of client, information of three (3) guarantors and the
signature of client along with 3 guarantors attached. Clients have to give the information of 4
relatives. I have done this for the amount of 5 lakh. Thats why no mortgage paper was needed to
attach. At last I have attached stamp.
CIB report:
It stands for Credit Information Burro. Clients who apply for loan, the bank gather all the
information and sent it to the Bangladesh Bank. I have done this.
I have kept the file on the basis of loan statement list.

Some clients insurance expired. I have informed them to renew the insurance.
I have attached stamp on Stamping Charge Document Loan file.
I have proper analyzed the credit proposal.

AS credit department is concerned the main point is they in all respect the must be careful about
the safety of banks fund. The policy of KYC is also conducted duly. In measuring the risk,
along with Credit Risk Grading (CRG) individual judgment is necessary to be applied. For doing
so extensive visit to customer is a must.

Department: Cash
I have performed that the vouchers were transferred to the Excel.

Customer Service
Functions of the department:
Account opening:
I have completed account opening form by asking different types of question to the customers.
What types of account to be opened is the major point. If the customer wants to open DPS or
FDR, they should open a savings account first. The procedure of filling the form same for DPS,
Savings, FDR, Double Benefit. I have done to attach client photo and signature, nominee photo,
signature and information and the national ID card of the client in the form. Then I have input
the information into the system and a customer ID is created. Photocopy of TIN certificate, trade
license and business seal is required for Companys current account.


Giving information about different products:
Customers are not known about all the product and services given by the bank. So they want to
know about them.
Chequebook issue:
Checque book issued to the customer first time in time of accounts opening. Pages of the
checque book may vary on the basis of types of account. When the pages are finished it contains
a page of requisition. Customer have to give signature and the given signature will be verified.
After few working day new checque book is issued.
Demand draft / Pay order issue:
I have done pay order. Here the customer have to fill the pay order form with amount of money
along with bank charge and VAT and mention the name to whom it will be payable.
Fulfill customer queries on the desk and over phone:
I have given the answers of necessary queries to the customer on the desk and over the phone.
Issuance of different documents for the customers:
Customer need different document in different purpose. Here I have given the Bank Statement to
the customers.

Customer service is the department that firstly and directly contracts the customer. In case of
account opening the policy of Know Your Customer (KYC) must have to be followed &
required documents as per instructions must be obtained in due course. Special concentration is
required to deal with transaction profile. As per contract bank is liable to protect every
customers accounts information secret. So in case of information transmittal bankers of this dept
must have to be sure that this is the right person to know the information.


Department: Foreign Trade (Remittance)
Inward Remittance
Bank Asia handles remittance in both traditional modes, Account Credit and Cash Payment over
the Counter. Here I have fulfilled the remittance inward form and print the money receipt from
internet and give these to my senior officer.
Outward Remittance
i. Distributions of export incentives
ii. Submission of report to Bangladesh Bank, etc.

1. Personal Loan:
2.2 Organization Wide
Bank ASIA, Rupnagar Branch is Non AD branch, thats why the branch provided few types of
loan. These types of loan are provided by the branch.
2. Unsecured Personal Loan:
Unsecured Personal Loan (UPL) is a terminating facility offered by Banks Consumer Credit
Department to individual salaried persons living in the cities / towns where the Bank has its
operations. It is a clean or unsecured loan in the sense that only security in this type of loan
product is: a) Letter of Introduction from employer b) Transfer of monthly salary and assignment
of Terminal Benefits c) Personal Guarantee taken from specific section of people.
2.1. Retired Unsecured Personal Loan
3. House Finance:
This product will facilitate the customer to have financing for purchase of flat/house,
construction of new house, extension and renovation of existing house etc.


Any Bangladeshi individual who has the means and capacity to repay bank loan. In
specific terms, these could be salaried executives of multinational and middle to large
size local corporate, Government officials, Officials working in reputed NGOs (Non
Government Organizations), international aid agencies & UN bodies, any tax paying
businessmen of repute, any employed / self-employed/ tax-paying individual having a
reliable source of income.
Customer Segment:

Loan amount Tk. 3,00,000.00 to Maximum Tk.75,00,000.00
Loan Feature:
Repayment tenure Maximum 15 years including maximum 1 year grace period.
Payment method- Equal Monthly Installments.
Loan to price ratio-70: 30
Competitive interest rate
No early settlement & partial adjustment fees
No hidden cost.

Age limit: Minimum 25 years, Maximum 65 years at loan maturity.
Minimum income: Debt burden ratio based
For salaried individual, minimum service length of 1 year and must be a
confirmed employee. For self employed individual, a business record of minimum
3 years & Land lord having substantial rental income.
4. Auto Loan:
This product will allow car financing to the customer segment. Under this scheme, the vehicle is
hypothecated to the bank only. In addition to this registration requirement, on a case-to-case
basis, bank may also secure the loan partially by the commonly acceptable form of cash/quasi
cash securities available in the market.


Any Bangladeshi individual who has the means and capacity to repay bank loan; In
specific terms, these could be salaried executives of multinational and middle to large
size local corporate, Government officials, Officials working in reputed NGOs (Non
Government Organizations), international aid agencies & UN bodies, any tax paying
businessmen of repute, any employed / self-employed tax-paying individual having a
reliable source of income.
Customer Segment:

Loan amount Maximum Tk.20,00,000.00 for both Recondition & Brand New Car
Loan Feature:
Repayment tenure Maximum 5 years for reconditioned car & 6 years for Brand
new car.
Payment method- Equal Monthly Installments.
Competitive interest rate
No early settlement & partial adjustment fees
No hidden cost.

Age limit: Minimum 25 years, Maximum 65 years at loan maturity
Monthly surplus income (after meeting all expenses) shall be at least Tk. 15,000/-.
For salaried individual, minimum service length of 3 years and must be a
confirmed employee. For self employed individual, a business record of minimum
3 years.
5. SOD
6. SME
The branch also gives corporate loan to the customers.

1. Loan Application.
2. TIN certificate
3. Trade License/Memorandum & Articles of Association if borrower is businessman
4. Salary Certificate/Income statement with letter of introduction if borrower is service
5. 02 copy passport size Photograph of borrower, spouse, guarantor.
6. Copy of national ID/Passport/birth certificate of borrower, spouse, guarantor.
7. Spouse information
8. Bank Statement last 01 year (Other bank)
9. Bank Loan Statement if any with sanction advice.
10. Information of Guarantor i.e. salary certificate/trade license and utility bill.
11. Net worth statement of borrower, spouse & guarantor
12. Agreement with Developer & borrower
13. Registered Power of Attorney & deed of agreement between developer & land owner
14. Copy of RAJUK/Municipal approved plan with letter
15. Money receipt copy.
16. Brochure of the project.
17. Trade License/Memorandum & Articles of Association of Developer
18. Chain documents of land property of project site:
a) Original Deed
b) Bia deed
c) Certified C.S., R.S., S.A. parcha, Certified Mutation Parcha as per R.S record,
Recent mat parcha, Up to date rent receipt, D.C.R.

d) N.E.C. (Non En-encumbrance Certificate)
Lending Procedure Followed by Bank Asia, Rupnagar Branch

Credit in charge of the
Proposal sent to
Corporate Office
Sanction to Branch
Call to Customer for
Send documents to
Loan limit to the Client
Create loan account &
credit the loan to client


Here the bank maintains the principles imposed by the Bangladesh Bank. Risk is associated with
each type of loan. Thats why the credit department of the bank follows risk grading for
corporate and SME. The proposed CRG scale is applicable for both new and existing borrowers.
It consists of 8 categories, of which categories 1 to 5 represent various grades of acceptable
credit risk and 6 to 8 represent unacceptable credit risk.

Superior SUP 1
Good GD 2
Acceptable ACCPT 3
Marginal/Watchlist MG/WL 4
Special Mention SM 5
Sub standard SS 6
Doubtful DF 7
Bad & Loss BL 8

For consumer lending, bank adopt credit-scoring models for processing facility applications and
monitoring credit quality.

2.3 Other Relevant Activities
In Bank ASIA, Rupnagar branch, I have attended some extra relevant activities. These activities
help me to explore myself. These activities are discussed in the perspective:

To attend in meeting:

Every Monday the Bank conducts a meeting with their
branch employees. Here they discuss about their performance, individual experience and
share the knowledge. Here the employees can give any suggestion to Banks interest.
When any new rules, regulation or product is launched, the employees are habitual or
informed by the meeting. If anyone know about the product or service provide by other
bank, the can explain ant give interest to launch them to increase bank sustainability and
2. To give exam (Quiz):

Here not only me, all the employees of the bank have to
attend the exam conduct by the branch manager. Here before exam all the employees are
given a document. The document is banking information based. They take their time to
cope with it. The document may vary time to time. Then in given time duration all the
employees give their exam. The marking is given on 10. It is nothing but to express to
what extent the employees are habitual with the given banking information. In another
word it is the way to judge the understanding level of the employees. The number
achieved by the employees are added with their own KPI ranking.


Chapter 3
Constraints/Challenges & Proposed
Course of Action for Improvement

3.1 Identified/observed in the organization

Sometimes the customers got informed lately in any purpose. So after a time period the concern
employee of the bank may feel rush to contact with the customers over the phone. There are
many purposes for what the bank need to contact with the customers. Such as for loan purpose,
giving ATM cards, issuing check books and so on.
Lack of communication with the customer:
It is the most common problem complained by the customers. The ATM machines are not
working properly most of the times. Sometimes the ATM card is captured by the machines.
Sometimes it happens when the card holder press wrong PIN code 3 times or any default of the
card. On the other hand there is an error of system that the customers withdraw the money but
the system show that the double amount of money debited to the customers bank account. The
ATM machines should be replaced.
Complain for ATM booths:
There exist lack of working combination between credit department & customer service
department. When the customer is needed to open a loan account the customer service
department wants to know the details from the customer as well as the credit department.
Because in this case credit department deal with the customer before. So to increase the working
efficiency all the departments have to work together.
Lack of combination between two departments:
The messengers of the branch play a role of helping hand to the employees. But most of the
times some of them doesnt follow the guideline or advice of junior level employees or
especially of an Intern.
Messengers are not working properly:

It is a small branch. So the number of employees is also fewer. It is not a major problem. But in
rush time the employees face problem to give service to the customers. In this time customers are
waiting for a long time. The bank failed to get the customer satisfaction. When the bank remain
close or the customers are not come for political violence, the following day is considered as
rush day rush hour. The customer pressure is excess in those days particularly.
Fewer numbers of employees:
6) Lack of motivation:
When an employee or an intern performed more than the task assigned by the senior no appraisal
or motivation is given to the employee or intern. If the employees or interns are get motivated the
performed much better than before in further.

Some employees are not friendly with the intern to share the knowledge and experience. An
intern should be treated as an employee, not as a intern. Here an intern get discourage on work.
Some are not friendly:
Banking hour of each and every bank including Bank ASIA is 10 AM to 6 PM. It is so boring to
work and give service to the customers. On the other hand every day all the employees including
an intern can stay after 6 PM for the closing of daily transaction. Bank should be more efficient
in this sector. Because though the banking hour is 10AM to 6 PM the transaction hour is10AM to
4 PM. So I think 2 hour is enough for daily closing. Moreover all the employees have to attend in
the office at 9.30 AM.

Corporate culture:

Bank fund Management: How to use or how to manage bank fund, I learned from this
course and I have got its application in Bank ASIA Limited. In Bank ASIA Limited
account section every day maintains a balance sheet that I learned from Bank Fund
3.2 Academic Preparation:
My major is accounting and Finance, thats why I got benefit from my internship. This subject
has a great impact on banking industry. Any student from this major subject can implement
his/her knowledge in the bank. I got clear knowledge about banking system of Bank ASIA
Limited. Furthermore there were some confines. Its not possible to learn everything within three
months. As an intern I know only few section like foreign exchange (remittance), credit risk
management, general banking and customer service etc. in addition there is less relation with our
study what we learned in our major Accounting& Finance.

Foremost consequence:

Financial Institution and Market: Credit rating of Bank ASIA Limited is Long Term
AA3 and short term is ST2 which is rating by the CRAB. From this course I learned
about credit rating organization, credit rating system, cancel rating etc.

University should arrange workshops about Microsoft Excel.
3.3 Knowledge & skills that need to be learned in the University which are
relevant to the company:
Conduct training program on professional software.
More emphasis on solving practical case study.
University should arrange more industrial tour to get more professional knowledge.
Have to give knowledge about how to write format business letter.
University need to arrange seminar with the professionals of leading company in the


Chapter 4
Lessons Learned from the
Internship Program

4.1 Implications to Organization
Implications to organization refer to the knowledge of the organization. An intern may pay a roll
as a helping hand. If an intern can perform with proper integrity the organization prefer them to
recruit in the organization.
On the basis of three months internship program the following skills that I have learned are
discussed in the perspective:

How to deal with customers.
Leaned about corporate culture.
Learned about cash management.
Procedure of accounts opening.
Corporate gesture to be maintained.
Required documents for different activities.
How give feedback to the senior.
Loyalty of the job.
How to manage customers in the worse situation.
Contact with customer over the phone.
Loan appraisal procedure.
Learned about credit risk management.
Procedure of credit risk grading.
Learned about SME.


In our overall BBA program there was no implementation on Microsoft Excel. Not only
bank but also each and every type of business randomly use Microsoft Excel & Microsoft
Word. So each University should give emphasis on learning of overall Microsoft Office
program to work better in further.
4.2 Implication to Universitys Internship Program

The Bank Internship offers highly motivated and successful individuals an opportunity to
improve their skills while working in a diverse environment. As a Bank intern, we will receive
professional coaching and hands-on training that will deepen our experience and expose you
firsthand to the challenges and rewards of international development and poverty reduction.

Here an intern is the representative of his/her University. So the University should make their
each and every student eligible to cope with the corporate world. Here the University should took
following steps to make their students eligible.

Each and every company use their own software to run their business and keep the record
of their daily transaction. So Universities should arrange workshop on how to work or
input in such type of software.
Here all the students solve the case studies give in the text books. But these texts are
written by the foreign writers. The perspective of case given in text and cases faced
practically by the students are not same. So the students should given practical cases
based on our countrys perspective.

Universities should arrange more industrial tour, thats why the students are known how
the employees work in their Concern Company or area. This also increases the
willingness of interested students who wants to work in that particular sector.

For the first time during in internship program the students know about the Formal
business letter. Lack of their knowledge regarding this they face problem. Format of
affiliation is also included in this topic. So Universities should give priority to learn about
the formal business letter and the format of affiliation. It should include in any subject.
Otherwise the students are trying to avoid the topics.
Many professionals are highly interested to share their knowledge and experiences with
the interested students. In this case Universities should step forward to arrange seminar or
workshop where successful professionals from prominent or leading corporation in the


Chapter 5
Concluding Statement


5.1 Summary
Bangladesh is one of the developing countries in the world. The economy of the country has a lot
left to be desired and there are lots of scopes for massive improvement. In an economy like this,
banking sector can play a vital role to improve the overall social economic condition of the
country. The banks by playing the role of an intermediary can mobilize the excess fund of
surplus sectors to provide necessary finance, to those sectors, which are needed to promote for
the sound development of the country.
Retail banking sector has achieved great popularity over the last decade. The industry has also
experienced a massive competition in recent years. Not only have a huge number of new players
entered the market, but with the emergence of new markets, the traditional retail loan providers
have had to vastly improve the terms on which they do business with customers. This means that
customers have more choices and better offers than ever before and this is also fuelling the
demand for more retail loan. Through retail loan Bank Asia not only enhances the living standard
of people but also makes general people familiar with banking system. There are a lot of
customers who have no capacity to expend a total amount of money at a time for meeting their
crisis need or for purchasing any necessary items for their home. But these customers do have
capability to give monthly installment at regular basis. Bank Asia has been satisfying these
customer segments through extending retail since inception of the bank. Since the coming day
market is going to be more competitive & logically aggressive so Bank Asia should focus more
on research & development activities regarding retail loan products and operation.
Moreover Bank Asia, specially Rupnagar branch where I have joined and worked should launch
new product and services to keep their position more stronger.


5.2 Recommendation
Our educational Knowledge should be more practical. In many times the text books contains the
example which are not common in our country. The examples should be based on our country
basis. If we culture this tradition, then we do better in our internship program.
Knowledge to be practical:
For the first time we face the affiliation format. But the university should give preference on the
format. We disturb our concerned coordinator because we are not familiar with it.
To familiar with report:
Three months internship program is not quite enough to learn all the activities of concerned
organization. Here the University should come forward to extent the time duration of the
internship report. On the other hand many small and medium organizations dont allow any
internship facility. They should provide this facility to increase their brand value. It enhance one
kind of indirect marketing.
To extent the duration:
When an intern joins to the organization, he/she is not familiar with the activities. So each and
every corporation should arrange training program to make the intern habitual with the activities.
So that the working efficiency of the intern increase. Some organizations provide such training
programs to their new employees and the interns. Islami Bank Bangladesh Limited and Credit
Rating Agency of Bangladesh (CRAB) are the examples of such type of oorganizations.

To provide training by the organization:


Chapter 6
Suggestion for Improvement
Course of Action



Today the business world is very much competitive. Each and every company of any particular
industry competes with one another to increase their market share, wealth and value. So every
company should aware about their competitor and their relative products and services. Here I
discuss about some course of action that I observed during the affiliation. These are discussed in
the perspective.
To keep contact regularly with the customers:
Laziness should be avoided in all the activities. All the activities have to be done in fixed time.
So that no work will be pending for future.
To improve the ATM facilities:
Number of ATM booths should be increase. Beside this the quality of ATM service to the
customer also has to be the best. ATM machines should be replaced and the automation system
should maintain properly.
To maintain good communication & relation of each and every department:
Success of every organization depends on the combination and inters relation with one
department to another department. So to ensure good relation with the departments the concern
authority have to pay attention to achieve long term strategic goal.
To make messengers aware and loyal:
They should be properly guided. The facilities for them may have to be increase.
To increase number of employees:
Though the branch is not big enough, more employees should be recruiting. It helps to achieve
customer satisfaction by giving service quickly. It also solve the problem of nation called


To increase the coordination of the employees:
Each employee has to be dedicated to their work. They should be cooperative with their staffs.
To increase motivation and remuneration:
When an employee performs in better way, he/she deserve motivation from the senior. So senior
staffs or manager have to give motivation all the employees. So that they work properly and
To modify Corporate culture:
The time duration of work should be changed or to make flexible. So that the employees dont
feel bore.
To increase the efficiency of the employees:
Company should arrange more training program to make their employees efficient.

Corporate Milestones:
Letter of intent received 24/02/1999
02. First meeting of promoters 15/04/1999
03. Certificate of Incorporation 28/09/1999
04. Certificate of Commencement of Business 28/09/1999
05. Banking License 06/10/1999
06. Inauguration of Bank 27/11/1999
07. Date of IPO subscription 23-24/09/2003
08. IPO oversubscribed by 56 times
09. Date of First Share Trading in Bourse 08/01/2004
10. Number of Shareholders and Shares (at the end of
10,868 (shareholders)
11. Date of First Subscription with CDBL 20/12/2005
12. Date of First Script-less Trading 30/01/2006
13. Commenced Operation of Off-Shore Banking 28/01/2008
14. Commenced Operation of Islami Banking 24/12/2008
15. Commenced Operation of Capital Market Division 05/08/2009
16. Number of Promoters 22

17. Number of Directors 14
18. Number of Branches 73
19. Number of SME Service Centres 10
20. Number of Agricultural/SME Branch 4
21. Number of Brokerage Branches 5
22. Number of Islamic Banking Wing 5
23. Number of ATM booths Own - 48, Shared-240 (Q-
cash), Cash Link (125+)
24. Credit Rating Status AA2 - Long Term ST-1 -
Short Term

Key Information:

Capital Structure:
figure in million
Paid-up capital 6,936.32 86.70
Statutory reserve 3,930.26 49.13
Revaluation reserve 2,668.32 33.35
General reserves 8.17 0.10
Retained earnings 466.14 5.83
Total shareholders' equity 14,009.21 175.12


Shareholding Structure:

Financial Highlights:
figure in million
Till 30-Sep-13
Total Assets 158,269
Deposits 122,356
Loans & Advances 99,474
Import 84,569
Export 54,464
Remittance (Inward) 24,046
Operating Profit 3,767
ROE 8.97%
ROA 0.82%

Yield on Advance 14.84%
Cost of Deposit 8.85%
Cost of fund 11.50%
Cost of Operation 2.65%
Spread 5.99%
Net Interest Margin 2.93%
Burden Ratio 0.57%
Capital Adequacy Ratio BASEL-II 11.92%

I want to play a role in a dynamic organization having professional working environment
employing my theoretical and practical knowledge acquired throughout my life which may lead
to my ultimate goal.
C/O. - Md. Shirajul Islam.
Block: C, Road: 11
House: 36
Cell Phone: 01675843036
E-mail: sidraislam15@gmail.com
Educational Background
Session : 2009-2010
Major Subject : Accounting and Finance
University : American International University Bangladesh
Result : (2.95/4)(Intern.)

Higher Secondary School Certificate (H.S.C):
Year : 2009
Major Subject : Business Studies
Institution : Dhaka Imperial College.
Board : Dhaka
Result : GPA 4.30.
Secondary School Certificate (S.S.C)
Year : 2007
Major Subject : Business Studies
Institution : M.D.C Model High School
Board : Dhaka
Result : GPA 3.88
Permanent Address : H-36, R-11, Block-C, Section-12, pallabi, Mirpur, Dhaka-
Personal Query:
Name : Sidra Islam Shemme
Fathers Name : Md. Shirajul Islam
Mothers Name : Shahana Pervin
Date of Birth : 02/12/1992
Religion : Islam
Nationality : Bangladeshi (By Birth)
Mobile No : 01675843036
Blood Group : O (+)
Sex : Female
Marital Status : Single

Software Applications:
MS Word, MS Excel, Power Point,
Operating Systems:
Windows 98, Windows 2000, Windows 2010, XP
Internet Browsing & E-mailing.

Language Proficiency: Bangle & English (Reading, Writing and speaking fluency)
Special Qualification: Smart, good communication skills, energetic, talent, dynamic
strong leadership skills, Excellent judgment and hard working.

DATE.......................... SIDRA ISLAM SHEMME


Mohammod J akir Alam S. K. Shahanur Rahman
Customer Service Manager Administrative officer
Retail Banking Division Ministry of Finance
BRAC Bank Ltd. Finance Division
1, Gulshan Avenue Mobile No: 01912072054
Gulshan, Dhaka Bangladesh Secretariat
Mobile No: 01713385090 Mobile No: 01916984131

1. S. M. Salahuddin. AVP and Branch manager of Bank Asia,
Rupnagar Branch
2. Ali Adnan. Eo and Operation Manager of Bank Asia,
Rupnagar Branch
1. Annual report of Bank Asia Limited.
2. Sustainability report of Bank Asia Limited.
Web Sites: