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Chapter 1:

Background of the Study

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1.1 Introduction
Credit management in a bank is a dynamic sector where a certain standard of long-range planning
is needed to allocate the fund in diverse field and to minimize the risk and maximizing the return
on the invested fund. The objective of the Credit management is to maximize the performing asset
and the minimization of the non-performing asset as well as ensuring the optimal point of Credit
and advance and their efficient management. The Credit policy of NCCBL Bank is a combination
of certain accepted, time tested standards and other dynamic factors dictated by the realities of
changing situations in different market places. NCCBL Bank aims to become one of the leading
banks in Bangladesh by prudence, flair and providing quality of Credit operations in the banking
sectors. NCC Bank Limited (NCCBL), intends to meet the needs of their clients and enhance their
profitability by providing best Credit facilities. The study is an effort to evaluate the Credit
management performance of NCC Bank Limited (NCCBL).

1.2 Objectives of the Study


The main objective of this study is to evaluate the Credit management performance of
NCCBL, Madunaghat Branch. In order to achieve the main objective the specific
objectives are:
i. To examine the Credit products of NCCBL;
ii. To observe the Credit procedure of NCCBL;
iii. To evaluate the Credit performance of NCCBL
iv. To provide some suggestions regarding this study.

1.3 Methodology of the Study


The study is mainly based on secondary data. The sources of secondary data are as follows:
 Annual reports.
 Official documents.
 Affairs of Branch.

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1.4 Scope of the Study
NCCBL’s managing procedures, working systems and environments which are very helpful to
know & to increase our knowledge & to get more information and data. The information section
of NCCBL is very rich that's why I was able to collect the required books, required materials and
the Internet facilities. The study organized at NCCBL to be familiar with the genuine life situation
of organization structure, director and overall activities. The study would have been informative,
if enough time might have been utilized. However I’ve found these required findings presented in
this paper.

1.5 Limitations of the Study


The report is subject to some limitations during its preparation. These are as follows:
 Lack of sufficient data.
 In-depth information as well as collection of quantitative data was not possible because of
organizational confidentiality.
 The busy schedule of the bank officials was an obstacle in the collection of data.
 Most of the questions have been aimed to collect qualitative data and state of mind of the
respondents. Analyzing such qualitative data is difficult and often produces inconclusive
results.
 The time frame of the research was only limited to two months.
 My inexperience was one of the notable limitation.

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Chapter 2:
Overview of the Bank

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2.1 Background of National Credit & Commerce Bank Ltd (NCCBL)
The institution started its function back in 1985 as an Credit Company in the name of National
Credit Limited (NCL) with a Paid-up capital of Tk.50 million only. NCCBL performed well for
near about 7 years. The core objective of the company was to play a catalyst role in the Capital
Market of the country by way of participating in security trading, underwriting etc. However in
1992 in the backdrop of closure of BCCI and BCI. This Credit company, NCCBL faced a severe
setback in respect of business.
With active initiative taken by the members of the Board and the Management team. The
company could overcome the problem and get it converted into a full-fledged Commercial bank
on 17-05-1993. After obtaining license from Bangladesh Bank as National Credit and Commerce
Bank Limited (NCCBL) re-flexing the Authorized Capital at Tk.750 million and Paid up Capital
at Tk.390 million of which Tk. 195 million was subscribed by the sponsors at that time.

Figure in Million*
Term Amount
Authorized Capital 2500
Paid Up Capital 1352.12
Reserve & other fund 1996.36
Deposit 34901.77
Credit 32687.75
Credit 62266.62
Foreign Exchange Business 577.92
Annual report of NCCBL 2017

2.2 Mission, Vision and Values

2.2.1. Mission
To mobilize financial resources from within and abroad to continue in agricultures industry and
Socio economic development of the country and to play a catalytic role in the formation of capital
market
2.2.2. Vision
To become the Bank of choice in serving the nation as a progressive and socially responsible
financial institution by bringing credit and commerce together for profit and sustainable growth.

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2.2.3. Work Responsibilities
In internship program I worked in general banking site (Should be Side). My job responsibilities
as an intern are given below.
a. To value and respect the customers and maintain harmonious banker- customer
relationship.
b. To strive for good profit and sound growth
c. To contribute towards the formation of national capital.
d. To achieve and sustain in the domestic leading market position in both customer and
corporate banking sector.
e. To be the most efficient bank in terms of technology application.
f.
Helping customers to open various (Savings, SSS, FDR) new Accounts.
g.
Receiving Bills (Gas, Electricity, WASA)

2.2.4. Corporate slogan of NCC Bank


“WITH YOU ALWAYS”
2.2.5. Values
 Customer focus
 Integrity
 Team work
 Respect customers
 Better service quality

2.3 Objectives of NCC Bank Limited


The main objective of the NCC Bank Limited is to maximize profit through customer satisfaction,
which very much reflects the idea of any type of service oriented business. NCC Bank Limited has
been ensuring profit by providing best and improved service along with other corporate objectives
mentioned below:
 To mobilize resources from within to the development and growth of the country.
 To play a catalyst role in the formation of capital market.
 Anticipating business solutions required by all our customers everywhere and
innovatively supplying them beyond expectation.

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 Setting industry benchmarks of world class standard in delivering customer value
through our comprehensive product range, customer service and all our activities.
 Maintaining the highest ethical standards and a community responsibility worthy of a
leading corporate citizen
 Continuously improving productivity and profitability and thereby enhancing
shareholder value.
 To provide excellent customer service to its clients, so they choose NCCBL first.
 Ensure high return on Credit with different service product.

2.4 Board of Directors


At present, the Board of directors consists of 26 members including the Chairman and the Vice
Chairman of the Bank. Out of 26 members 23 of them are the sponsor of the shareholders and 3
of them are publicly nominated as the equity participants from capital market have included them.
Most of the members are reputed industrialist and businesspersons of our country. The Board is
headed by the Chairman. Each of the directors is the member of the Board. The members are
obliged to maintain the annual general meeting and declare the dividend pay-out schedule on due
time. Moreover, the committee selected by the shareholders represents individual body that then
looks after the periodic issue with the management and tries to solve the problems.
Board of Directors Name Designation
Alhaj Md. Nurun Newaz Chairman
A.S.M. Main Uddin Monem Vice Chairman
Md. Abdul Awa Director
Amjadul Ferdous Chowdhury Director
S.M. Abu Mohsin Director
Abdus Salam Director
Mrs. Sohela Hossain Director
Yakub Ali Director
Md. Abul Bashar Director
Md. Harunur Rashid Director
Khairul Alam Chaklader Director
Md. Moinuddin Director
Md. Amirul Islam Independent Director & Chairman, Audit
Committee
K.A.M Haroon Independent Director
Mohammed Nurul Amin Managing Director & CEO

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2.5 Organizational structure of NCC Bank Limited

ex comittee

audit
comittee

Managing
director
Additional
managing
director
Senior
executive vice
Board of president
directors
Senior vice
president

Asstant vice
president
Senior
executive
Chairman officer
First executive
officer

Officer

chief
vice chairman
executive

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2.6 Products and services of NCCBL
2.6.1 Deposit Products
a. Current A/C
b. Savings Bank Deposit A/C
c. Special Notice deposit A/C
d. Special Savings Scheme
e. Special Deposit Scheme
f. Premium Term Deposit A/C
g. Instant Earnings Term Deposit
h. Money Double Program
i. Money Triple Program
j. Youngster Account
k. Youngster Maximus Account
l. Youngster Money plant Scheme

Short description are given below:

a) Current Account

Any businessman, firm, limited companies, local bodies, corporate bodies etc. can open a Current
A/c with NCC Bank Limited. Current deposit is 100% demand deposit and account holder can
deposit/withdraw his/their deposits frequently without any limit.

b) Savings Bank Deposit

Any individual person, local bodies, club, society, association, house wife, student, non-profitable
organization etc. can open a Savings Bank Deposit A/c with NCC Bank Limited. Saving Bank
Deposit is both and demand deposit, of which 10% is demand and 90% is time deposit and account
holder can withdraw his/their deposits twice in a week up to a certain limit. SND A/c is interest
bearing deposit account.

c) Special Notice Deposit

Any businessman, firm, limited companies, local bodies, corporation, corporate bodies etc. can
open a Special Notice Deposit A/c with NCC Bank Limited. Special Notice Deposit is 100% Time
deposit and account holder can withdraw his/their deposits with prior notice to the bank.

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d) Special Savings Scheme

Any individual person can open a Special Savings Scheme deposit A/c with NCC Bank Limited
for tenure of 5/10 years. Depositors can open SSS A/c with monthly slab of minimum Tk.500 and
maximum Tk.25, 000 and can deposit its monthly installments up to 15th day of month. SSS A/c
deposit is 100% term deposit and account holder can withdraw his/their deposits after expiry of
maturity of SSS A/c. SSS A/c is interest bearing deposit account and interest rate varies on the
basis of tenure of deposit.

e) Special Deposit Scheme

Any individual person, businessman, firm, limited companies, local bodies, corporation, corporate
bodies etc. can open a Special Deposit Scheme A/c with NCC Bank Limited. Special Deposit
Scheme A/c is a term deposit of 3 (Three) years and interest is payable on monthly basis. Special
Deposit Scheme is 100% term deposit and account holder can withdraw his/their deposits
(Principle amount) after expiry of maturity of deposit.

Amount of Deposit Monthly Dividend Amount of Deposit Monthly


Dividend
Tk. 1,00,000.00 Tk. 875.00 Tk. 6,00,000.00 Tk. 5,250.00
Tk. 2,00,000.00 Tk. 1,750.00 Tk. 7,00,000.00 Tk. 6,125.00
Tk. 3,00,000.00 Tk. 2,625.00 Tk. 8,00,000.00 Tk. 7,000.00
Tk. 4,00,000.00 Tk. 3,500.00 Tk. 9,00,000.00 Tk. 7,875.00
Tk. 5,00,000.00 Tk. 4,375.00 Tk.10,00,000.00 Tk. 8,750.00

f) Premium Term Deposit

Any individuals, corporate bodies, trustees of provident/benevolent fund etc. can open Premium
Term Deposit A/c with NCC Bank Limited for Tk.5.00 lac and above but multiple of Tk.1.00 lac.
Premium Term Deposit A/c is a term deposit of 2 (Two) years against which interest is payable
above 1% of the existing rate interest applicable on Fixed Deposit for 12 months. Premium Term
Deposit is 100% term deposit and account holder can withdraw his/their deposits (Principle with
interest) after expiry of maturity of deposit.

g) NCC Bank Instant Earning Term Deposit

Any individuals, retired personnel, housewives, widow and wage earners can open Instant Earning
Term Deposit A/c with NCC Bank Limited for Tk.1.00 lac and above but multiple of Tk.1.00 lac.
Instant Earning Term Deposit A/c is a term deposit of 1 (one) year against which interest is payable
below 1% of the existing rate interest applicable on fixed deposit for 12 months and interest for
one year is payable instantly at the time of opening of the account. Instant earning Term Deposit
is 100% term deposit and account holder can withdraw his/their deposits (Principle amount) after
expiry of one year.

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h) NCC Bank Money Double Program

It is a new product of deposit. It is a deposit product for a specific period of 7 years. On completion
of term of 7 years the deposit amount will make the principal amount double and depositor will
get double of deposited amount.

i) NCC Bank Money Triple Program

Money Triple Program is a new deposit product of NCC Bank for a specific time period of 9 (Nine)
years. This long term deposit is offering to make your principal amount triple on maturity.

j) NCCB Youngster Account

NCC Bank Youngster Banking is the product of School Banking program. School Banking is all
about learning regarding the importance of saving and smart money management. We passionately
believe that when it comes to your education, knowing how to manage money is as essential as
English, Maths, Science or Arts. Our School Banking program gives you an easy, fun and
interactive way to learn money management skills you will use for the rest of your life. Through
the program, you can bank at school, giving you an opportunity to have hands-on banking
experience in a fun and interactive environment.

k) NCCB Youngster Maximum Account

Round the year you get the opportunity to receive cash gifts in different religious celebrations, on
English & Bengali New Year (Pahela Boishakh), on your Birthday or on Special Family Event.
But all these special days donation even come at a time or nevertheless in sequel. Yes you want to
spend this treasure-trove on many things but you are wishing for spending it on a big longing.
Youngster Maximus shall help you to accumulate your cash to a substantial amount. Youngster
Maximus is a great Credit option for you whenever you have enough cash to avail this opportunity.
The Youngster Maxims has the ability to earn for you a higher rate of return than a regular
transactional account or traditional fixed deposit account. The rate of return is fixed for the duration
of the term selected, so you know exactly how much return you will earn at maturity. The
Youngster Maximus is zero risk Credit than traditional similar account. You only need a small
amount to get started. This is the best option that best suits your savings goals. Finally, if you
continue to roll your Youngster Maximus account over a longer period of time, you can get the
additional benefit or compound return on your Credit

l) NCCB Youngster Money plant Scheme

Nowadays you have access to more money than ever before, thanks to allowances, gifts and for
many, income from artistic presentation of your talents. Having more money makes you more
responsible for managing money and making decisions for everything from small everyday
purchases to bigger-ticket items (such as a bike or a camera) to saving for your higher education.
What I am telling now is about managing your pocket money in a Smart Way by understanding
money.

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2.6.2 Loan Products
a. Personal Loan
b. Education Loan
c. Car Loan Scheme
d. House Building Financing
e. House Repairing & Renovation Loan
f. Home Improvement Loan
g. Consumer Finance Scheme

Loan products details are given below:

a) NCC Bank Personal Loan

A loan facility for the service holders to meet the emergency expenses of the following occasions
to bear the cost of Medical treatment / Surgical Operation / Maternity / Marriage.

b) NCC Bank Education Loan

Thinking of higher studies abroad? Just think of us first. You should think more on where your
child should study than your financial constraints. To help your child to make understand his/her
true academic potential, come to NCC Bank for our Education Loan, to ensure a better higher
education for your child.

c) NCC Bank Car Loan

Just choose your car. Leave the financing to us. A facility to ease the burden of high cost as well
as to fulfil the dream of acquiring your car

d) NCC Bank House Building Finance

Housing is one of the five prime needs of mankind. Everybody has a dream to have a dwelling
house of his own. NCC Bank’s Housing Loan with competitive rates, convenient features and
simple procedures will enable you to turn your dream into reality.

e) NCC Bank House Repairing & Renovation Loan

A term loan facility to finance for House repairing and renovation to increasing rental income

f) NCC Bank Home Improvement Loan

Planning to change the décor? Just get in touch with us. A term loan facility to finance Home
Renovation/ Extension/Purchase of household durables for better dwelling standard.

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g) NCC Bank Consumer Finance Scheme

The facility will offer an opportunity to fixed income groups to enjoy the benefit of sophisticated
living and enhance their work efficiency which will contribute to socio-economic development of
Bangladesh. Under Consumer Finance Scheme we finance the following

Items Loan Amount Range


New Vehicles Minimum 30% of total cost
Reconditioned Vehicles Minimum 40% of total cost
Other Items Minimum 25% of total cost

h) NCC Bank Wage Earners Welfare Deposit Pension Scheme (WEWDPS)


A special DPS product titled “Wage Earners’ Welfare Deposit Pension scheme” (WEWDPS) for
the wage earners. Under the scheme this remitters will be able to make monthly deposits from their
foreign currency remittances sent for 5 years. Under this scheme they would not be required to
bear tax on their income. The slots of monthly instalments and amounts of Taka receivable

i) NCC Bank Overseas Employment Loan Scheme (OELS)

This Loan Product is designed to help potential candidates aspiring for going abroad as wage
Earners. The product will be termed as “Overseas Employment Loan Scheme” (OELS) and the
salient features are:

j) Smart Pay & Discount facility

NCC Bank has introduced Smart Pay service with Equal Monthly Instalment (EMI) facility for
our Credit card holders. Smart Pay enables cardholders to buy a product of their choice from
selected merchant outlets within our country and pay later with 0% interest rate over a tenure
ranging 3, 6, 9 and 12 months.

2.6.3 Cards
a. Credit Cards
b. Debit cards

a) NCC Bank Visa Credit Card


NCC Bank has launched its Visa Credit Card Service on August 22, 2005 and they are offering
three types of cards which are Visa Classic, Visa Gold (Local) and Visa Dual Currency Card
(Globally and locally). Since then we have issued significant number of both general and corporate
cards.

b) Corporate Visa Credit Card

The new dimension of NCC Bank Visa Credit Card is Corporate Credit Card which has already
started to benefit the Corporate Houses.

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2.6.4 Remittance products

Remittance products of NCC Bank Limited are given below:

a) NCC Bank Treasury Service


NCC Bank Treasury has a well-equipped state of the art dealing room with a dedicated team of
skilled human resources for efficient dealing. NCC Bank Treasury provides all sorts of Treasury
solutions including Foreign Exchange, Money Market, Fixed Income and Corporate solutions.
b) Foreign Exchange
NCC Bank Treasury engaged in need based foreign currency transactions in inter-bank market.
NCC bank dealing room is connected to world famous Thomson Reuters live currency monitor
with other on-line dealing platforms of different international banks to quote competitive spot &
forward prices for major currencies .We are offering competitive exchange rates to our Importers,
Exporters and Non-Resident Remitters for major currencies against BDT.
c) Money Market
Money Market deals for internal fund mobilization abiding regulatory requirement. Our Money
Market desk ensures that the bank is sufficiently liquid by minimizing cost of fund at minimum
risk. NCC Banks Money Market desk lends and borrows a remarkable amount in inter-bank market
for liquidity management.
d) Fixed Income Market
NCC Bank is the market leader in Primary Dealer of Government securities. With a view to
activating a secondary market in Treasury bills/Bonds and other Government securities
Bangladesh Bank nominated NCC Bank as a primary dealer in the year 2003.From the very
beginning we are actively trading.
e) NCC Bank Remittance Service
 Special rate of interest in saving account
 Interest at a higher rate (1% + to existing rate) in Saving Accounts of the Wage
earners/beneficiaries.
 Loan for land purchase at a required interest rate
 Finance by way of land mortgage loan to purchase land at 50:50 debt- equity participation
by remittance sent and rebate @ 2% on total interest if the loan is repaid by remittance
sent.
 Loan for construction of house at reduced interest rate

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 Finance to construct house at 30:70 equity-debt participation against proceeds of
remittance and rebate @ 2% on total interest if the loan is repaid by remittance sent.
 Advance against remittance sent
 Advance payment up to Tk. 10000/- against regular monthly remittance against guarantee
from a valued client/local dignitary.
 Priority in Finance for Credit in Trade and Industrial Project
 Financing SME project undertaken by the expertise/ beneficiaries with their remittance
proceeds at 30:70 equity debt ratio at a prime rate of interest.
 Profit at special rate on term deposit

2.7 SWOT Analysis


SWOT analysis is an important matter to know the present condition of strengths, weakness,
opportunities and threats of NCCBL Bank Ltd. This analysis also helps the company
management to take relevant measure to make up its weakness and to face the external threats of
the competitors. The term SWOT includes the following
a. S-strengths
b. W-weakness
c. O-opportunities
d. T-Threats

a) Strengths
 Well reputed in the Market.
 Not engaged in unfair business practice
 Concentrated market
 Well experienced professionals
 Efficient management practices in the bank
b) Weakness
 Reluctant .to Add Campaign
 Small market shortage.
 Don’t have enough ATM service for attracting more customers
 Social responsibilities issues are neglect
 Insufficient number of deposit Scheme

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c) Opportunities
 In Developing Country like Bangladesh banking service would be the only source to get
financing.
 The customer of the bank can diversify their portfolio by introducing new sectors.
 The Banking sector of Bangladesh is growing very fast
 The bank can also start micro credit business for individuals and small business.

d) Threats
 The most important threats of the company are coming from the competitors. The
company has a chance to lose its market share to the competitors if it does not take
necessary action.
 The size of the market and the present state of economic activity did not provide
adequate scope for business for a large number of banks with poor management and
outdated operating systems.
 The competitors may come with innovate ideas which is difficult to adapt.
 Many local and foreign aggressive Banks are in the market Competitors have
more deposits
 Different aggressive offers and services of foreign and other local banks
 Daily basis interest on deposit offered by the foreign banks
 Entrance of new private commercial banks.

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Chapter 3:
Credit Activities
Of
NCC Bank Limited

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3.1 Introduction

The word credit comes from the Latin word “Credo” meaning “I believe”. It is a lender’s trust in
a person’s/ firm’s/ or company’s ability or potential ability and intention to repay. In other words,
credit is the ability to command goods or services of another in return for promise to pay such
goods or services at some specified time in the future. For a bank, it is the main source of profit
and on the other hand, the wrong use of credit would bring disaster not only for the bank but also
for the economy as a whole. The objective of the credit management is to maximize the performing
asset and the minimization of the non-performing asset as well as ensuring the optimal point of
loan and advance and their efficient management. Credit management is a dynamic field where a
certain standard of long-range planning is needed to allocate the fund in diverse field and to
minimize the risk and maximizing the return on the invested fund. Continuous supervision,
monitoring and follow-up are highly required for ensuring the timely repayment and minimizing
the default. Actually the credit portfolio is not only constitute the bank’s asset structure but also a
vital factor of the bank’s success. The overall success in credit management depends on the banks
credit policy, portfolio of credit, monitoring, supervision and follow-up of the loan and advance.
Therefore, while analyzing the credit management of NCCBL, it is required to analyze its credit
policy, credit procedure and quality of credit portfolio.

3.2 Credit Policy

Credit Policy of NCCBL One of the most important ways, a bank can make sure that its loan meet
organizational and regulatory standards and they are profitable is to establish a loan policy. Such
a policy gives loan management a specific guideline in making individual loans decisions and in
shaping the bank’s overall loan portfolio. In NCC Bank Limited there is perhaps a credit policy
but there is no credit written policy.

3.3 Credit Principles

Credit Principles In the feature, credit principles include the general guidelines of providing credit
by branch manager or credit officer. In NCC Bank Limited they follow the following guideline
while giving loan and advance to the client.

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a. Credit advancement shall focus on the development and enhancement of customer
relationship.
b. All credit extension must comply with the requirements of Bank’s Memorandum and
Article of Association, Banking Company’s Act, Bangladesh Bank’s instructions, other
rules and regulation as amended from time to time.
c. Loans and advances shall normally be financed from customer’s deposit and not out of
temporary funds or borrowing from other banks.
d. The bank shall provide suitable credit services for the markets in which it operates.
e. It should be provided to those customers who can make best use of them.
f. The conduct and administration of the loan portfolio should contribute with in defined risk
limitation for achievement of profitable growth and superior return on bank capital.
g. Interest rate of various lending categories will depend on the level of risk and types of
security offered.

3.4 Objectives of the Scheme

 To sell our services to a wide range of customers and increase our CCS portfolio.
 To provide financial assistance to the limited income group for buying household durable
and utility products.
 To help the professionals in raising their standard of living.
 To participate in the socio-economic development of the country.

3.5 Global Credit Portfolio Limit of NCCBL

The features which deals with how much total deposits would be used as lending the proportion
of long term lending, customer exposure, country exposure, proportion of unsecured facility etc.
the most notable ones are:

 The aggregate of all cash facility will not be more than the 80% of the customer’s deposit
 Long term loan must not exceed 20% of the total loan portfolio.
 Facilities are not allowed for a period of more than 5 (Five) years.
 Credit facilities to any one customer group shall not normally exceed 15% of the capital
fund or TK. 100 crores.

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3.6 Types of Credit

Credit may be classified with reference to elements of time, nature of financing and provision base.

3.6.1 NCC Bank Personal Loan

A loan facility for the service holders to meet the emergency expenses of the following occasions
to bear the cost of Medical treatment / Surgical Operation / Maternity / Marriage.

a) Eligibility of the applicant

 Only Permanent salaried employees with at-least 3 years of confirmed service.

b) Age Limit

 Minimum Age 21 years to Maximum 50 years.

c) Loan Limit

 Minimum: BDT 25,000 and Maximum BDT 100,000.

d) Loan Application Fees

 BDT 600

e) Loan Tenure

 Minimum 6(six) months but not exceeding 3(three) years.

f) Required Documents

 3 copies of recent Passport Size Photograph of Applicant(s), Applicant’s Spouse and


Guarantors, Self-attested.
 Copy of National ID Card of Applicant (s), Applicant’s Spouse & Guarantor(s).
 Last one year bank statement of the applicant (s) [personal or company account].
 Up-to-date copy of TIN Certificate of Applicant(s) & Guarantor(s).
 Utility Bill Copy (Gas or Electricity).
 Accepted budget or quotation.
 Employer’s letter of introduction/salary certificate/salary statement and office ID Card.

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3.6.2 NCC Bank Education Loan

You should think more on where your child should study than your financial constraints. To help
your child to make understand his/her true academic potential, come to NCC Bank for our
Education Loan, to ensure a better higher education for your child.

a) Eligibility of the applicant

 Any Bangladeshi bonafide student, after successful completion of at least H.S.C

 Complied all preconditions for getting admission and Visa formalities.

 Have no bad reputation e.g. Criminal Record, Political connection etc.

b) Loan Limit

 Minimum: BDT 100,000 and Maximum: BDT 1,000,000.

c) Loan Application Fees

 BDT 600

d) Required Documents

 Completion of A/C opening formalities including Letter of Introduction.

 Letter of Authorization from the Student for whom the Loan will be availed.

 Copies of National ID Card & TIN of Borrower, Student and Guarantor (if available).
 Salary/ Income Certificate stating net earnings.
 Copy of Passport with valid visa of the student, where applicable.
 Copies of Certificate of Education of the student.
 Any other documents that are prudently felt necessary.

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3.6.3 NCC Bank Car Loan
A facility to ease the burden of high cost as well as to fulfill the dream of acquiring your car

a) Eligibility of the applicant

 Salaried employees having at least three years of confirmed service.


 Self-Employed Professionals having at least 3 years of independent practice experience.
 Businessperson having at least 3 years business experience.
 Homeowners or property income holder.
b) Age Limit

 Minimum Age 21 years to Maximum 60 years.

c) Loan Limit

 Minimum BDT 200,000 and Maximum BDT 4,000,000.


d) Vehicle Category

 Japanese, Korean, USA, South East Asian and European Origin Vehicles only.
e) Loan Application Fees

 BDT 600
f) Loan Tenure

 Reconditioned Vehicle: maximum 60 Months and Brand New Vehicle: maximum 72


months.
d) Required Documents

 3 copies of recent Passport Size Photograph of Applicant(s), Applicants Spouse and


Guarantor (s) Self Attested.
 Copy of National ID card of Applicant (s), Applicants Spouse & Guarantor(s).
 Last one year bank statement of the applicant (s) [personal or company account].
 Up-to-date copy of TIN Certificate of Applicant(s) & Guarantor(s).
 Utility Bill Copy (Gas or Electricity).
 Accepted quotation of the car.
 If applicant is a salaried person then employers letter of introduction/salary certificate/salary
statement and office ID Card.
 Copy of Professional Degree certificate, self-declaration on own Letter Head Pad stating
monthly income and membership certificate if Applicant or Guarantor is a professional
individual.
 If Applicant (s) or Guarantor (s) is a businessman Up-to-date trade license.
 If the Applicant (s) is a property income holder then copy of Title deed of rental property,
rental agreement or Rent receipt for the last three months.

22
3.6.4 NCC Bank House Building Finance
Housing is one of the five prime needs of mankind. Everybody has a dream to have a dwelling
house of his own. NCC Banks Housing Loan with competitive rates, convenient features and
simple procedures will enable you to turn your dream into reality.

a) Purpose of the loan

 Purchases of Flats/Houses
 Construction of building on own land
 Extension of building/floors
b) Who can apply

 Confirmed Service holders with at least 3 years-service experience employed by a well


reputed organization
 Professionals with minimum 3 years-experience (with adequate proof)
 Business persons with minimum 3-years continuous business performance (with adequate
proof).
c) Feature of the loan

 Loan Amount: Tk.5,00000/-to Tk.75,00000/.


 Loan Period: 05 years to 15 years
 Interest Rate: Competitive Interest Rate as per Banks Policy and Bangladesh Bank
 Age of the property: Not exceeding 10 years in case of purchase of ready house/building
 Location of the property: City Corporation/Pourosava where there is a plan duly approved
by a designated graduate Civil Engineer duly approved by the appropriate authority

23
3.6.5 NCC Bank House Reparing & Renovation Loan
A term loan facility to finance for House repairing and renovation to increasing rental income.

a) Eligibility of the applicant

 Home Owners and Salaried individuals.

b) Age Limit

 Minimum Age 21 years to Maximum 50 years.

c) Loan Limit

 Minimum: BDT 50,000 and Maximum: BDT 500,000.

d) Loan Application Fees

 BDT 600

e) Loan Tenure

 Minimum 6(six) months but not exceeding 3(three) years.

f) Required Documents

 3 copies of recent Passport Size Photograph of Applicant(s), Applicant’s Spouse and


Guarantors, Self-attested.
 Copy of National ID Card of Applicant (s), Applicant’s Spouse & Guarantor(s).
 Last one year bank statement of the applicant (s) [personal or company account].
 Up-to-date copy of TIN Certificate of Applicant(s) & Guarantor(s).
 Utility Bill Copy (Gas or Electricity).
 Accepted budget or quotation.
 Employer’s letter of introduction/salary certificate/salary statement and office ID Card.

24
3.6.6 NCC Bank Home Improvement Loan
A term loan facility to finance Home Renovation/ Extension/Purchase of household durables for
better dwelling standard. Under Home Improvement facility we finance the followings:

 Purchase of Electronic Household Durables.


 Purchase of Furniture and Fixtures.
 Modification of the decoration of the building/flat.
 Extension of the existing Building.
a) Eligibility of the applicant

 Home Owners and Salaried individuals.

b) Age Limit

 Minimum Age 21 years to Maximum 50 years.

c) Loan Limit

 Minimum: BDT 50,000 and Maximum: BDT 500,000.

d) Loan Application Fees

 BDT 600

e) Loan Tenure

 Minimum 6(six) months but not exceeding 3(three) years.

f) Required Documents

 3 copies of recent Passport Size Photograph of Applicant(s), Applicant’s Spouse and


Guarantors, Self-attested.
 Copy of National ID Card of Applicant (s), Applicant’s Spouse & Guarantor(s).
 Last one year bank statement of the applicant (s) [personal or company account].
 Up-to-date copy of TIN Certificate of Applicant(s) & Guarantor(s).
 Utility Bill Copy (Gas or Electricity).
 Accepted budget or quotation.
 Employer’s letter of introduction/salary certificate/salary statement and office ID Card.

25
3.6.7 NCC Bank Consumer Finance Scheme
The facility will offer an opportunity to fixed income groups to enjoy the benefit of sophisticated
living and enhance their work efficiency which will contribute to socio-economic development of
Bangladesh. Under Consumer Finance Scheme we finance the following:

 New/Reconditioned Car/Motor Cycle/Microbus etc.


 Refrigerator/Deep Freeze.
 Television/VCR/VCP/Two-in-one/Three-in-One sets/Camera etc.
 Air Cooling System and generator.
 Personal computer and peripherals/Word Processor.
 Electrical appliances like washing Machine, Water pump, Micro wave Woven, Dish
Antenna etc.
 Photocopier, sewing Machine, Laminating Machine etc.
 Furniture/Fixtures.
 Fax Machine, Cellular Phone.
a) Eligibility of the applicant

 Salaried individuals.
 Business Person.
 Professionals.
b) Age Limit
Minimum Age 25 Years to Maximum 50 Years (excerption may be allowed for employees of
NCC Bank).
c) Loan Limit
Minimum: BDT 100,000 and Maximum: BDT 300,000

f) Required Documents

 3 copies of recent Passport Size Photograph of Applicant(s), Applicant’s Spouse and


Guarantors, Self-attested.
 Copy of National ID Card of Applicant (s), Applicant’s Spouse & Guarantor(s).
 Last one year bank statement of the applicant (s) [personal or company account].
 Up-to-date copy of TIN Certificate of Applicant(s) & Guarantor(s).

26
3.7 Recovery Management

3.7.1 Monitoring

Bank’s Credit portfolio should be subject to a continuous process of monitoring. This will be
achieved by regular generation of over limit and overdue reports, showing where facilities are
being exceeded and where payments of interest and repayment of principal are late. There should
be formal procedures and a system in place to identify potential Credit losses and remedial action
has to be taken to prevent the losses. Beside that the systems should be in place to report the
following exceptions to relevant executives in Credit / sales and branch marketing staff:

 Past due principal or interest payments


 Timely corrective action is taken to address finding of any internal, external or
regulator inspection/audit.
 All Credit facilities are reviewed annually
 Computer system should be able to produce the reports for central / head office as
well as branch review.

3.7.2 Early Alert Process

An Early Alert account is one that has risks or potential weakness of a material nature
requiring monitoring, supervision, or close attention by management. An early alert report
shall be completed by the RM and sent to the approving authority in CRM for any account
that is showing signs of deterioration within seven days from the identification of
weaknesses.

Moreover, regular contact with customers will enhance the likelihood of developing
strategies mutually acceptable to both the customer and the bank.

3.7.3 Recovery Process

The collection process for personal Credits starts when the account holder has failed to
meet one or more contractual payment (installment). It therefore becomes the duty of the
collection department to minimize the outstanding delinquent receivable and Credit losses.

This procedure has been designed to enable the collection staff systematically recover the
dues and identify / prevent potential losses, while maintaining a high standard of service
and retaining good relations with the customers.

27
To identify and manage arrears, the following aging classification is adopted-

Days Past Due Collection Action


(DPD)

01-14 Letter, Follow up & Persuasion over phone

15-29 1st Reminder letter & Sl. No. 1 follows

30-44 2nd reminder letter + single visit

45-59 3rd reminder letter

group visit by team member

follow up over phone

letter to guarantor, employer, reference all above effort follows

warning on legal action by next 15 days


60-89 Call up Credit

Final reminder & serve legal notice

Legal proceedings begin

repossession starts
90 and above Telephone call and legal proceedings continue

Collection effort continues by officer agent

Letter to different banks association

28
Chapter 4:
Credit Analysis
Of
NCC Bank Limited
Madunaghat Branch, Chittagong

29
4.1 Total Credit of NCC BANK LIMITED, Madunaghat Branch
In case of Credit the banker advances a lump sum for a certain period at an agreed rate of interest.
The entire amount is paid on an occasion either in cash or by crediting in his current account,
which he can draw at any time. The interest is charged for the full amount sanctioned whether he
withdraws the money from his account or not.
Table 1: Total Credit of NCC Bank Limited
Figure in Bdt. Tk.
Year Amount Growth Rate
2013 8,02,79,455 -
2014 8,62,90,000 7.49%
2015 9,52,16,994 10.34%
2016 9,72,12,689 2.09%
2017 11,14,79,032 14.67%
4:1 The table shows the total Credit of the NCC BANK LIMITED, Madunaghat Branch

Total Investment
0.16 14.67%
0.14
0.12 10.34%
0.1
7.49%
0.08
0.06
0.04 2.09%
0.02
0
0
2013 2014 2015 2016 2017

Total Investment

4:1 The graph shows the total Credit of the NCC BANK LIMITED, , Madunaghat Branch
Analysis: From above graph we can see that, total Credit gradually in up-down trend from 2013
to 2017. In 2014 the growth rate was caused by loans increasing faster than deposits. It was through
2015 to 2017 as 10.34%, 2.09%, 14.76% respectively as deposits grew fast when compared to the
previous year, thereby improving the banks’ liquidity standing.

30
4.2 Cash Credit of NCC BANK LIMITED, Madunaghat Branch
In Cash credit, banker specifies a limit called the cash credit limit, for each customer, up to which
the customer is permitted to borrow against the security of tangible assets or guarantees. Cash
credit is given through the cash credit account. The purpose of cash credit is to meet working
capital need of traders, farmers and industrialists.
Cash Credit: Total Cash / Total Deposit.
Table 2: Cash Credit of NCC BANK LIMITED
Figure in Bdt. Tk.
Year Amount Growth Rate
2013 4,08,90,321 -
2014 4,90,78,000 20.02%
2015 5,21,40,539 6.25%
2016 5,94,53,324 14.02%
2017 6,54,44,535 10.31%
4:2 The table shows the cash credit of the NCC BANK LIMITED, Madunaghat Branch

Cash Credit
25.00%
20.02%
20.00%

14.02%
15.00%
10.31%
10.00%
6.25%
5.00%

0.00%
2013 2014 2015 2016 2017

Cash Credit

4:2 The graph shows the cash credit of the NCC BANK LIMITED, Madunaghat Branch

Analysis: From this above graph, we can see that the amount of cash credit was decreasing over
the year. The fall of 2015 can be attributed to the growing loans and deposits given and accepted
by the bank. Growing loans make the cash in hand and at banks smaller, while growing total
deposits made the denominator of the cash ratio larger, thereby making the numerical figure of the
ratio smaller. The growth rate of both deposits and credits fell in 2016 but in 2017 cautious Credits
increased cash in hand and at banks, while a small increase in deposits made the cash ratio grow
when compared to the previous years.

31
4.3 Overdraft of NCC Bank Limited, Madunaghat Branch

Overdrafts are those drawings which are allowed by the banker in excess of the balance in the
current account up to a specified amount for definite period as arranged for. These advances are
secured. The loan holder can freely draw money from this account up to the limit and can deposit
money in the account off course, this loan has an expiry date after which renewal or enhancement
is necessary for enjoying such facility.
Table 3: Overdraft of NCC Bank Limited
Figure in Bdt. Tk.
Year Amount Growth Rate
2013 2,80,87,990 -
2014 3,09,12,890 10.05%
2015 3,79,76,900 18.52%
2016 4,55,89,941 20.04%
2017 4,98,92,979 9.43%
4:3 The table shows the overdraft of the NCC Bank Limited, Madunaghat Branch

Overdraft
25.00%

20.04%
20.00% 18.52%

15.00%

10.05% 9.43%
10.00%

5.00%

0.00%
2013 2014 2015 2016 2017

Overdraft

4:3 The graph shows the overdraft of the NCC Bank Limited, Madunaghat Branch

Analysis: From the above graph, we can see the up and down trend of overdraft amount over the
year. The amount of overdraft growth ratio increased from 2015 to 2016 gradually which was
18.52% and 20.04% but fall down in 2017 9.43%.

32
4.4 Credit Exposure of NCC Bank Limited, Madunaghat Branch
Credit exposure is the total amount of credit made available to a borrower by a lender. The
magnitude of credit exposure indicates the extent to which the lender is exposed to the risk of loss
in the event of the borrower's default.
Table 4: Credit Exposure of NCC Bank Limited
Types of Credit Exposure BDT in Million %
Industrial Loan 120.62 38.53%
Commercial Lending 81.27 25.96%
House Building Loan 59.86 19.12%
Retail Loan 19.91 6.36%
Staff Loan 10.11 3.23%
Others 21.28 6.80%
Total 313 100.00%
4:4 The table shows the Credit Exposure of the NCC Bank Limited, Madunaghat Branch

Credit Exposure
6.80%
3.23%
6.36% 38.53%
Industrial Loan
Commercial Lending
House Building Loan
19.12% Retail Loan
Staff Loan
Others

25.96%

4:4 The graph shows the Credit Exposure of the NCC Bank Limited, Madunaghat Branch

Comment: Above table and pie chart shows the different credit exposure of NCC Bank Limited,
Madunaghat Branch. In 2017, Industrial Loan sector was in highest position occupying 38.53% of
total credit exposure and figure was 120.62 million taka. The lowest sector was Staff loan which
occupy 3.23% of total credit exposure and the figure was 10.11 million taka.

33
4.5 Equity to Asset Ratios of NCC Bank Limited
The equity ratio is a financial ratio indicating the relative proportion of equity used to finance a
company's assets. The ratio, expressed as a percentage, is calculated by dividing total shareholders'
equity by total assets of the firm, and it represents the amount of assets on which shareholders have
a residual claim. The figures used to calculate the ratio are taken from the company's balance sheet.
Table 5: Equity to Asset Ratios
Figure in BDT. Taka
Year Total Equity Total Assets Loans to Total Asset Ratio
2013 13,572,342,605 99,067,010,385 -
2014 14,354,670,000 118,910,783,100 12.07%
2015 14,990,800,000 165,810,823,890 12.92%
2016 15,683,622,065 147,610,803,254 10.62%
2017 16,572,112,605 174,067,010,385 9.52%
4:5 The table shows equity to asset ratios of the NCC Bank Limited

Equity to Asset Ratio


0.14 12.92%
12.07%
0.12 10.62%
9.52%
0.1
0.08
0.06
0.04
0.02
0
0
2013 2014 2015 2016 2017

Equity to Asset Ratio

4:5 The graph shows equity to asset ratios of the NCC Bank Limited
Analysis: The ratio follows a more or less cyclical trend from 2014 to 2017 with peaks in 2015
and dips in other years respectively. The ratio was 12.07% in 2014. In 2015 however, equity to
asset shot up to an unprecedented level that is 12.92%. The increase was caused solely by the
increase in owner’s equity. It decreased again in 2016 to 10.62%. The reason was significant
increase of asset rather than equity.

34
4.6 Total Credit and Deposit Performance of NCC Bank Limited, Madunaghat
Branch
This ratio forms part of the Credit and Deposit Performance ratios of a bank, and measures a
company's liquidity stability by calculating the proportion of Credit and deposit the company is
using to finance its assets.
Table 6: Total Credit and Deposit Performance.
Figure in BDT. Taka
Year Total Deposit Total Credit Credit to Total Deposit Ratio
2013 2,72,342,605 45,89,000 -
2014 354,670,000 72,90,000 48.65%
2015 390,800,000 52,16,994 74.91%
2016 483,622,065 53,12,689 89.70%
2017 572,112,605 74.79,032 76.50%
4:6 The table shows total credit and deposit performance of the NCC Bank Limited, Madunaghat Branch

Total Credit and Deposit Performance


100.00%
89.70%
90.00%
80.00% 74.91% 76.50%

70.00%
60.00%
48.65%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2013 2014 2015 2016 2017

Total Credit and Deposit Performance

4:6 The graph shows total credit and deposit performance of the NCC Bank Limited, Madunaghat Branch

Analysis: It was 48.65% in 2014 and increased to 74.91% in 2015. It increased again to 89.70%
in 2016 and decreased to 76.50% in 2017. The fluctuations in the ratio from 2014 to 2017 can be
explained by changes in the manner of financing. Both the total credit and deposit ratio decrease
in 2014.

35
4.7 Loan Recovery Performance of NCC Bank Limited, Madunaghat Branch
In finance the term recovery refers to collection of amount due. The normally recovery depends
on the purpose, time and condition, business running process etc. Normally loan amount will
be recovered on installment basis.
Table 7: Loan Recovery Performance
Figure is in Bdt. million

Year Disbursement Recovery Recovery Rate of Classified Loan


2013 290.12 240.64 82.75%
2014 390.12 310.14 79.30%
2015 430.45 330.61 76.34%
2016 470.98 350.30 74.10%
2017 510.98 395.13 77.70%
4:7 The table shows loan recovery performance of the NCC Bank Limited, Madunaghat Branch

Loan Recover
100.00%
96.10% 96.70%
95.34%
95.00%
92.30%

90.00%

85.00% 82.75%

80.00%

75.00%
2013 2014 2015 2016 2017

Loan Recover

4:7 The graph shows loan recovery performance of the NCC Bank Limited, Madunaghat Branch

Analysis: On the above, the graph showing the recovery position of NCC Bank Limited,
Madunaghat branch as on 31, Dec 2017. In 2013 recovery rate was higher than other years, it was
82.75%. But in 2016 recovery rate was lowest; in that year recovery rate was 74.10%, which are
way less than 2017. From 2013 to 2017, we can see recovery rates were gradually decreased year
by year. The recovery rate was poor in that period as economy hampered a lot due to political crisis
in recent years.

36
4.8 Profit from Credit of the NCC Bank Limited, Madunaghat Branch
Profit from Credit of NCC Bank Limited, Madunaghat Branch, Chittagong are given
below:
Table 8: Profit from Credit
Year Amount (Tk.) Growth Rate
2013 6814000 -
2014 8814000 22.69%
2015 21086000 58.19%
2016 20000000 (-5.43%)
2017 25713000 22.21%
4:8 The table shows profit from Credit of the NCC BANK LIMITED, Madunaghat Branch

Profit form Investment


0.7
58.19%
0.6

0.5

0.4

0.3
22.69% 22.21%
0.2

0.1
0
0
2013 2014 2015 2016 2017
-0.1
-5.43%
Profit form Investment

4:8 The table shows profit from Credit of the NCC Bank Limited, Madunaghat Branch

Analysis: From the above graph, we can see that there was growth rate of profit in 2014
22.69% and in 2015 the rate was 58.19% because NCC Bank Limited was making profit
from them. But next year 2016 net profit of NCC Bank Limited was decreased rapidly to
negative slope (-5.43%). But in 2017 net profit was increased to 22.21% again.

37
Chapter 5:
Findings, Recommendations
And
Conclusion

38
5.1 Summary of Findings
While working at NCC Bank Limited, Madunaghat Branch, I have attained to the newer kind of
experience. After the collecting and analyzing of data I have got some findings. Those findings
are completely from my personal point of view.
Those are:
1. Total credit growth rate was in up & down trend which are 7.49%, 10.34%, 2.09 and
14.67% respectively from 2014 to 2017.
2. Total cash credit rate was also in up and down trend which are 20.02%, 6.25%, 14.02%
and 10.31% respectively from 2014 to 2017.
3. Overdraft growth rate was 10.05%, 18.52%, 20.04% and 9.43% respectively from 2014 to
2017.
4. The highest amount of credit in industrial sector which is 38.53% of total amount of Credit.
House building Credit of the branch was 19.12% in 2016 and commercial lending was
second priority & rate was 25.96% of total amount of Credit.
5. The equity to asset growth ratio was 12.07%, 12.92%, 10.62% and 9.52% respectively
from 2014 to 2017.
6. Credit and deposit performance growth rate was 48.65%, 74.91%, 89.70% and 76.50%
respectively from 2014 to 2017.
7. Retail credit system is not sound in the branch.
8. Loan recovery rate was 82.75%, 79.30%, 76.34%, 74.10% and 77.70% respectively from
2013 to 2017.
9. Profit from credit growth rate was 22.69%, 58.19%, (-5.43%) and 22.21% respectively
from 2014 to 2017.

39
5.2 Recommendations
NCC Bank Limited is one of the potential banks in the banking sector. The Credit department of
NCC Bank Limited, Madunaghat Branch is a large and busy branch. Therefore it is not an easy
job to find so many things during the very short period of internship program. Though now 1 would
like to present my recommendations improve the banking service and make the customer more
satisfied.
1. Bank should prepare the CRG score sheet based on audited balance sheet. Because
it shows appropriate position of the firm. So it reduces the credit risk.
2. NCC Bank Limited’s liquidity position is better than other banks. So management
should hold this position for the future.
3. Effective decision should be taken by the trust for the more deposit because the
more deposit, the more Credits, the more profit & the more Credit.
4. Effective and efficient initiative is necessary to recover the default Credits.
5. The Credit documentation and verification should be done fairly and properly.
6. They should diversify their credit products.
7. The credit department, strict supervision is necessary to avoid Credit defaulters. The
bank official should do regular visit to the projects.
8. NCC Bank Limited should take initiative for agricultural sectors.
9. NCC Bank Limited should attract customer to provide credit at minimum rate
compare to other bank.
10. NCC Bank Limited should improve the recovery rate of credit & advances.

40
5.3 Conclusion

National Credit Commerce Bank Limited (NCCBL) is serving the market with almost full range
of services. While I’m doing internship in Madunaghat branch I got to realize that. As the number
of branches implies, still Bank has limited operation in our country, but it should also be noted
that within the next few years from its establishment, no bank could make as good standing as
NCCBL has now. While go through the different reports it’s found that. Authorized and paid up
capital, reserve fund, Savings, Loans and advances. Loan Management, Credit foreign trade,
treasury activities, capital market activities, no. of Branches, Dividend Good corporate
governance, compliance of the regulations provided by Security and Exchange commission etc.
are moving towards a highly positive trend at the satisfactory level. The Bank is run by a group
of professionals who are well organized and committed to the bank. Now it is gradually moving
towards automation and which will not allow any sort of discrepancies. Bank now aggressively
looking and establishing Foreign partners at abroad, to make easier and shorter the time for the
remit of NRB. All the above implies that they are successful in gaining the trust of the people
and business entities of our country.

41
References
 NCC Bank Limited Corporate Intranet.
 Annual Report of NCCBL 2013-2017.
 Statement of Affairs, Prepared by accounts section of Madunaghat Branch.
 Various information’s supplied by NCC Bank Limited, Madunaghat Branch,
Chittagong.
 Websites

 http://www.nccbl.com.bd/
 www.bangladeshbank.org
 Websites of other banks.

42

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