Chapter: 1

Introduction
1.1 Introduction
“A bank is an establishment which makes to individuals such advantage of money as may
be required and safely made and to which individuals entrust money when not needed by
them to use.”……Kin lay
Banking system occupies an important place in a nation economy. A banking institution
is indispensable in a modern society. Banks safeguard money and valuables and provide
loans, credit, and payment services, such as checking accounts, money orders, and
cashier’s checks. Banks also may offer investment and insurance products, which they
were once prohibited from selling. As a variety of models for cooperation and integration
among finance industries have emerged, some of the traditional distinctions between
banks, insurance companies, and securities firms have diminished. In spite of these
changes, banks continue to maintain and perform their primary role accepting deposits
and lending funds from these deposits.
National Credit and Commerce Bank Limited a private sector commercial bank. The bank
has its head office at Dhaka and 104 branches. The management of the bank is vested in
13-member board of directors, including representatives of the 3 sponsor firms. The
managing director is its chief executive. The bank conducts all types of commercial
banking activities including foreign exchange business and other financial services.
During the first two years of operations, the bank's main focus was on the delivery of
personalized customer services and expansion of its clientele base.
National Credit and Commerce Bank started its operation on October 24, 1993 as a
private sector bank with an authorized capital of Tk. 10000 million .The paid up capital of
the bank amounted to Tk. 6,141.2 million as on November 12, 2015.

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1.2 Background of the study

It has become essential for every person to have some idea on the bank and banking
procedure. As our educational system predominantly text based, inclusion of practical
orientation program is an exception to the norm. from practical knowledge, we will be
able to know real life situations and arts a career with some practical experience.
Bachelor of Business Administration (BBA) is a professional course. The course is
designed with an excellent combination of practical and theoretical aspects. After
completing BBA, certain times are preserved for internship as a student of BBA,
internship is an academic requirement. For internship every student is required to work in
a selected institution to enhance ones practical knowledge and experiences. For the
requirement of my course this was assigned to National Credit and Commerce Bank ltd
(NCC), Panthapath branch for my internship. In this situation this was assigned to prepare
report on “Credit Management policy”. National Credit and Commerce Bank Ltd. bears a
unique history of its own. The organization started its journey in the financial sector of
the country as an investment company back in 1985. The aim of the company was to
mobilize resources from within and invest them in such way so as to develop country’s
Industrial and Trade Sector and playing a catalyst role in the formation of capital market
as well. Its membership with the browse helped the company to a great extent in this
regard. The company operated up to1992 with 16 branches and thereafter with the
permission of the Central Bank converted in to a fully fledged private commercial Bank
in 1993 with paid up capital of Tk. 39.00 corer to serve the nation from a broader
platform. Since its inception NCC Bank Ltd. has acquired commendable reputation by
providing sincere personalized service to its customers in a technology based
environment. The Bank has set up a new standard in financing in the Industrial, Trade and
Foreign exchange business. Its various deposit & credit products have also attracted the
clients- both corporate and individuals who feel comfort in doing business with the Bank.
Within this short time the bank has been successful in positioning itself as progressive
and dynamic financial institution in the country. This is now widely acclaimed by
the business community, from small entrepreneur to big merchant and conglomerates,
including top rated corporate and foreign investors, for modern and innovative ideas and
financial services.

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1.3 Objectives of the Study:
Major Objective:
The main objective of the study is to analysis Credit Management Policy of NCC Bank
Limited
Specific Objectives:
 To assessing the credit structure of the bank
 To identify types of loan given by NCC Bank.
 To asses loan disbursement policy of the selected bank
 To evaluate loan recovery position of the NCC bank
 To give recommendations based on findings

1.4 Scope of the Study:

The scope of the report was to find the Credit Management Policy of NCC Bank Limited.
An infrastructure of organization has been detailed, accompanied by company corporate
perceptive and look into the future. The scope of this report is limited to the overall
descriptions of the bank, its services, and its position in the industry, and its competitive
advantage. The scope of the study is limited to organizational setup, functions, and
performances. During these three months internship program in NCC Bank Ltd,
Panthapath Branch almost all the desks have been observed.. The major limitation of my
report is that sometimes collecting information was barred on the ground of
confidentiality. Though knowledge about banking practices of all the departments has
been gathered it is beyond the scope of this paper to focus on all the aspects in details. So
this paper will focus on only Credit Management Policy of NCC Bank Limited.

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1.5 Limitations of the study:
 Limitation is a usual part of report analysis. Whenever any report is going on to
analysis, there are several lacking to find out the result of the particular topic. To
make this report, I am also faced lacking or limitation. These are given below
 Time duration is not enough for such an extensive study. It is very difficult to
collect all the required information in such short period.
 NCC is fully centralized bank and all information is available in head office.
Branch gets information when special request is made. Branch employees only
know the information that the head office informed.
 Due to some legal obligation and business secrecy banks are reluctant to provide
data. For this reason, the study limits only on the available published data and
certain degree of formal and informal interview.
 A worthwhile study requires the analysis of as much data as possible covering
various aspects of the study. This did not have access to the various types of
information about Loans & advances.
 To protect the organizational loss in regard of maintaining confidentiality some
parts of the report are not in depth.
 This carried out such a study for the first time. So, in-experience is one of the
main factors that constituted the limitation of the study.

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 Chapter 2:
Methodology
2.1 Research Methodology:
Based on knowledge that has be gathered from the practical work during the internship
period following methodological issues has followed. In order to carry out the report,
This collecting the required data from both primary and secondary sources. This analyze
the information and try to make graphical tools to get a clear picture of the situation.

2.2 Sources of Information:

Both primary and secondary sources of information were being pursued with regards to
the presentations of this study. The following procedure and sources are accessed:

Primary Source: Secondary Source:

• Personal observation • Annual report of NCC 2014, 2015

• Working at different desks of the bank • Files and Folders
• Face to face conversation with other • Statement affairs
officer • Bank rate sheets
• Face to face conversation with client • Progress report of Bank
• Websites
• Different circulars sent by Head
Office and Bangladesh Bank
• Some books on Banking

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 Chapter: 3
Organizational Profile
3.1 At a glance of NCC Bank:
National Credit and Commerce Bank Ltd. is a third generation bank in Bangladesh. It
provides commercial banking services in the Bangladesh. It is playing an important role
to develop the business sector. The growth of this bank is very good. Its motto is to
provide a prompt and quick service to the clients. NCC Bank Ltd. has implemented well
structured online banking systems that make it easier to provide prompt services to the
customer. The bank primarily engages in corporate banking, trade finance, project
finance, retail banking, small enterprise finance, consumer finance, and syndication. Its
range of service offerings include cash management services, payments and clearings,
safe deposit locker services, employee benefits, collection services, treasury services,
asset management, services and SWIFT for foreign trade.

Corporate Slogan: With you always.

3.2 History:

National Credit and Commerce Bank Limited (NCC) is a Banking Company registered
under the Companies Act, 1994 with its Head Office at NCC Bank Head Office. NCC
Bank Bhaban 13/1 - 13/2, Toynbee Circular Road Motijheel C/A, Dhaka - 1000,
Bangladesh. The Bank started its operation from 3rd June 1993.

NCC Bank Limited is a highly capitalized new generation Bank with an Authorized
Capital and Paid-up Capital of Tk.10000 million and Tk.4488 million respectively. The
Paid-up capital has been raised to 6141.2 million and the total equity of the bank stands at
9908.8 million as on November 11, 2015.

NCC Bank undertakes all types of banking transactions to support the development of
trade and commerce of the country. NCC's services are also available for the
entrepreneurs to set up new ventures and BMRE of industrial units. NCC Bank Ltd. the

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only Bengali named new generation private commercial bank was established by a group
of winning local entrepreneurs conceiving an idea of creating a model banking institution
with different outlook to offer the valued customers, a comprehensive range of financial
services and innovative products for sustainable mutual growth and prosperity. The
sponsors are reputed personalities in the field of trade, commerce and industries. The
Bank is being managed and operated by a group of highly educated and professional team
with diversified experience in finance and banking. The Management of the bank
constantly focuses on understanding and anticipating customers’ needs. The scenario of
banking business is changing day by day, so the bank's responsibility is to device strategy
and new products to cope with the changing environment.

NCC Bank Ltd. has already achieved tremendous progress within only fifteen years. The
bank has already ranked at top of the quality service providers & is known for its
reputation.

NCC Bank Ltd. offers different types of Corporate and Personal Banking Services
involving
all segments of the society within the purview of rules and regulations laid down by the
Central Bank and other regulatory authorities. As per the provisions of Bangladesh Bank
license, the Bank has offered initially its shares to public by Pre – IPO and subsequently
sold shares to the public through IPO in the year 2004. The shares of the Bank are listed
with both Dhaka Stock Exchange Ltd. & Chittagong Stock Exchange Ltd.

3.3 Mission and vision:

Mission,
The bank is committed to satisfy diverse need of its customers through an array of
products at a competitive price by using appropriate technology and providing timely
service so that a sustainable growth, reasonable return and contribution to the
development of the country can be ensure with a motivated and professional workforce.

Vision,
To become a leading banking institution by playing a significant role in the development
of the country.

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3.4 Objectives of NCC Bank
• To establish relationship banking and improve service quality through
development of Strategic Marketing Plans.

• To remain one of the best banks in Bangladesh in terms of profitability and assets
quality.

• To ensure an adequate rate of return on investment.

• To keep risk position at an acceptable range (including any off balance sheet risk).

• To maintain adequate liquidity to meet maturing obligations and commitments.

• To pursue an effective system of management by ensuring compliance to ethical

norms, transparency and accountability at all levels.

3.5 Score values:

• Place customer interest and satisfaction as first priority and provide customized
banking products and services.
• Value addition to the stakeholders through attaining excellence in banking
operation.
• 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.
• Employees of NCC share certain common values, which helps to create a NCC
culture.

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3.6 NCC Bank Chronicles:

April 02, 1993 Incorporation of the company

June 03, 1993 Commencement of banking business
June 03, 1993 First Branch opening at Mohakhali
October 25, 1997 First Islami Banking Branch opened at Nayabazar
December 11, 1997 Licensed as a Primary Dealer
March 28, 1998 First Dividend Declaration for income year 1998 @ 10%
December 12, 2000 Initial Public Offering
April 12, 2001 Listed with Dhaka Stock Exchange
April 17, 2001 Listed with Chittagong Stock Exchange
September 09, 2002 Increased Authorized Share Capital To BDT 400.00 Crore
October 16, 2003 Space Purchased for establishing Corporate Head Office at
Motijheel
June 15, 2004 Launching of SME Division
July 29, 2004 Launching of First SME/ Agri Branch
December 22, 2004 Obtained Off Shore Banking License
December 23, 2004 NCC Bank Capital Management Limited (Merchant Bank)
June 13, 2005 Increased Authorized Capital To BDT 1000.00 Crore
December 25, 2005 NCC Bank Model Village (Singpara, Thakurgaon)
February 07, 2006 Issuance of Right Share
November 11, 2006 NCC Bank Medical College & Hospital
February 18, 2008 NCC Bank Securities Limited (Brokerage House)

Table 1: NCC Bank Chronicles (Source: Annual Report of NCC 2015)

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3.7 Bank Profile:
Type of Banking : Conventional Commercial Bank
Incorporated On : April 02, 1993
Started Operation on : June 03, 1993
No, of Branches : 105
No, of Employee : 2,204
Authorized capital : 10,000.00 Million
Paid Up Capital : 5,160.67 Million
No, of Directors : 14
Chairman : SM Abu Mohsin
Managing Director : A.S.M Main Uddin Monem

Table 2: Bank Profile (Source: Annual Report of NCC 2018)

3.8 Corporate Directory:

NCC Bank Limited

Registered Office NCC Bank Bhaban 13/1 - 13/2, Toynbee
Circular Road Motijheel C/A, Dhaka -
1000, Bangladesh.
ACNABIN
Chartered Accountant NCC Bank Bhaban
Auditor 13/1 - 13/2, Toynbee Circular Road
Motijheel C/A, Dhaka - 1000,

Mr. Habibul Islam Bhuiyan

Senior Advocate
Legal Adviser Bhuiyan Islam & Zaidi
House #29, Road#9/A
Dhanmondi R/A
Dhaka -1209

Table 3: Corporate Directory (Source: Annual Report of NCC 2018)

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3.9 Management:
NCC Bank is managed by highly professional people. The present Managing Director of
the Bank is a forward looking senior banker having decades of experience and multi
discipline of knowledge to his credit both at home and abroad. He is supported by an
educated and skilled professional team with diversified experience in finance and
banking. The management of the bank constantly focuses on the understanding and
anticipating customers’ needs and offer solution thereof. NCC Bank Limited has already
achieved tremendous progress within a short period of its operation. The Bank is already
ranked as one of the quality service providers and known for its reputation.

3.10 Ownership structure

Leading industrialists of the country having vast experience in the field of trade and
commerce own 52.48% of the share capital and the rest n held by the general public.
NCC’s board currently consists of 14 directors. Authorized capital is tk.4000 million and
paid up capital is tk.2230 million on 2014.

3.11 Product/Service Offering

The Bank has a collection of mode that prepared financial products and services. Such
products are based on Monthly Savings Schemes, Consumer Credit Schemes, Lease
Finance and Personal Loan for Women and Shop Finance Scheme etc. NCC Bank Ltd,
also familiar with Q-cash ATM cards for its valued customers providing 24 hours
banking services through Debit Cards. NCC offers the following services to valued
customer. The Bank is providing different types of services. Some of them are mentioned
in below:

3.12 Portfolio Management Service

Since inception, we have achieved an unparalleled reputation as a leading Merchant
Banker through providing portfolio management services by maintaining a high level of
professional expertise and integrity in client relationships. Keeping customer preferences
as an investor in mind, NCC Bank Ltd. has designed Investors’ Discretionary Account
(IDA) and Bank’s Discretionary Account (BDA). In these accounts the customers may
enjoy loan facilities at a ratio 1:1 for investments in private placement, IPO, and
secondary market operations.

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3.13 Types of Deposit account
There are several types of deposit accounts. Each account has different characteristics and
every account has some specific purpose to serve.NCC offers the following key Personal
Banking Services. According to their uniqueness they are described as follows:

i. Savings Account:
It is the general account of the NCC individual or more than two persons can open a
savings account on NCC. The officers and authorize persons are issuing cheque book,
deposit slips and statement of account to the holder of savings. The officer justifies the
information that is submitted by the account holder for r opening of the account. The
officers of the bank process account-opening formalities.
ii. Current Deposit Account:
NCC is one of the newly established well-reputed third generation private commercial
bank in Bangladesh. It operates very diverse current account operation. They serve
various types of customers, like current account for private limited company, current
account for public limited company, current account for partnership business, etc.
iii. Foreign Currency Account:
The NCC also operate Foreign Currency Account for Bangladeshi Wage Earners or for
Foreign Nationals/Company/Firms etc. to send their valued earned foreign currency into
the country.
iv. Short Term Deposit Account (STD):
NCC also offers Short Term Deposit to its valued customers. Short Term Deposit is a
deposit account where the payment of interest is paid on month basis. These items include
the deposits for a period ranging from 7 (seven) days to 89 (eighty-nine) days. These
types of liabilities are payable on special notice or after a specified period other than the
fixed deposits. Some of these types of deposits are of the nature of time deposits. The rate
of interest on STD account is 4.5% per annum. There are some rules and regulations that
must be maintained by the STD account holder. If the STD account holder wants to
withdraw the money from the account they have to inform the bank before, otherwise the
account holder may not get the interest in full amount.

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3.14 Types of loan of what are offered by NCC Bank Limited:
• Loan (General)
• House Building Loan (General
• House Building Loan (Staff)
• Other Loans to Staff
• Cash Credit (Hypo.)
• Cash Credit (Pledge)
• Corporate Social Responsibilities of the NCC Bank Limited
• Hire Purchase
• Lease Financing
• Time Loan
• Cons SOD (General)
• SOD (Others)
• SOD (Export)
• PAD
• LIM
• LTR
• IBP
• Export cash credit (ECC)
• Packing Credit (PC)
• FDBP
• IDBP
• FBP

3.15 Online Banking and Software:

NCC Bank Limited has introduced real-time any branch banking on December 31, 2011.
Now, customers can withdraw and deposit money from any of its 104 branches located at
Dhaka, Chittagong, Sylhet, Rajshahi, and Khulna. The valued customers can also enjoy
24 hours banking service through ATM card from any of Q-cash ATMs
Flora Software: Flora is in-house banking software. Almost every bank in Bangladesh
uses this software. NCC Bank bought this software from Flora Ltd. Its requirement is
WINNT platform this software is use in every department of branch; (Cash, Account,
Credit, Clearing, Foreign exchange)

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3.16 Organizational Structure:
The organizational hierarchy of NCC Bank Limited can be shown in the following
diagram:

Board of Directors

Managing Director And CEO

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior AVP

AVP

Officers
Graph 2: Organizational Structure (Source: NCC Bank Website)

3.17 Swift Code:

The Swift address or BIC of NCC Bank is: JAMUBDDH

3.18 Branch:
NCC Bank Limited has 104 Branches all over the country

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3.19 Branch Profile Panthapath Branch
Operation Started on : March 01-2016
No. Of Employee : 25
Branch Manager : Md. Jalaluddin Chowdhory, SEVP
Branch In-charge : Md. Jalaluddin Chowdhory, FAVP
Depoty Manager Salma akhter, AVP
General Banking In-Charge : Kaji Akter Jahan, SPO
Credit In- Charge : ANM Marazul Islam Mozumder, EO
Foreign Exchange In-Charge : Mr. Touhid Ahmed, EO
: Monem Business District, East Tower
(Level-3), 111, Bir Uttam C.R.Dutta Road,
Contact Address Dhaka-1205.
Table 7: Branch Profile (Panthapath Branch)

3.20 Management Structure in Panthapath Branch:

Manager
(Branch In-Charge)

Operation Manager

General Banking Credit Foreign Exchange

Customer Officer 1
Pre-sanction Export
Service
Officer 2 (Loaners procedure)
Import
Cash Receiving
Officer Post-sanction
In-charge Paying
(Documentation)
Officer
Account Teller
Accounts
In-charge

Clearing Remittance

A/c Close
GB In-Charge
Pay Order

F.D.R. Interest

Graph 3: Management Structure (Panthapath Branch)

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3.21 SWOT Analysis

4.16 SWOT:
SWOT analysis refers to analysis of strengths, weaknesses, opportunities and threats of an
organization. This facilitates the organization to make its future performance improved in
comparison to its competitors. An organization can also study its current position through
SWOT analysis. For all of these, SWOT analysis is considered as an important tool for
making changes in the strategic management of an organization. Through direct
observation and discussion with the NCC officials I am able to point out some major
strength and weaknesses as well as some threats and opportunities regarding the various
issues of the Bank such as –

• Organizational identity
• Service level
• Operational efficiency
• Technology
• Employee efficiency etc. along with many other issues.
Strengths Weaknesses
• Top management • Dependent on fixed deposits
• Corporate culture • Moderate risk management system
• Various Products and Services • Absence of strong marketing
• Strong employee bonding activities
• Efficient Performance • Not enough innovative products
• Strong financial position

Opportunities Threats
• Country wide network • Similar products are offered by
• Introducing more branches others
• Introducing special corporate • Default Loans
scheme • Industrial Downturn
• Real time online banking • Increased competition in the market
• Creation of brand image

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Strengths
 Top Management
The NCC Bank Limited is operated by a very efficient management group. The top
management officials have all worked in reputed banks and their years of banking
experience, skill, and expertise will continue to contribute towards further expansion of
the bank. So, the top management of the bank is the major strength for NCC.

 Corporate Culture
NCC has an interactive corporate culture. The working environment of NCC is very
friendly, interactive and informal. And, there are no hidden barriers or boundaries while
communicate between the superior and the employees. This corporate culture works as a
great motivation factor among the employees of the bank.

 Various Products and Services

NCC offers various types of products and services to their clients. So those, Customers
can choose the right products that will fulfill their needs.

 Strong employee bonding and belongings

NCC employees are one of the major assets of the company. The employees of NCC have
a strong sense of commitment towards organization and also feel proud and a sense of
belonging towards NCC. The strong organizational culture of NCC is the main reason
behind its strength

 Efficient Performance
It has been seen from customers’ opinion that NCC provides hassle-free customer
services to its client comparing to other financial institutions of Bangladesh. Personalized
approach to the needs of customers is its motto.

 Strong Financial Position

It has been seen that the net profit has been gradually rising over the years. Furthermore,
NCC is not just sitting on its previous year’s success, but also taking initiatives to
improve. One of the employees has said.

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Weakness
 Dependent on fixed deposits
NCC Bank heavily dependents on fixed deposit. The bank have to pay large amount of
interest for the just because of highly depend on fixed deposit.

 Moderate risk management system

NCC risk management system is not that much secured. They need to develop their risk
grading system.

 Absence of strong marketing activities

NCC currently don't have any strong marketing activities through mass media e.g.
Television. TV ads play vital role in awareness building. NCC has no such TV ad
campaign. Although they do a lot of CSR activities compared to other banks.

 Not enough innovative products

In order to be more competitive in the market, NCC should come up with more new
attractive and innovative products.

Opportunities
 Country wide network
The ultimate goal of NCC is to expand its operations to whole Bangladesh. Nurturing this
type of vision & mission & to act as required, will not only increase NCC's profitability
but also will secure its existence in the long run.
 Introducing more branches
There are many important places in Bangladesh, where customers are eagerly waiting for
doing banking transactions. But no existence of banks is in those places. Although NCC
already has 104 branches to provide services to its customers, it must also open more
branches in those places where people needs banking facilities.

 Introducing special corporate scheme

NCC can introduce special corporate schemes for the corporate customers or officers who
have an income level higher from the service holders. At the same time, they can

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introduce schemes or loans for various service holders. And the schemes should be
separate according to the professions, such as engineers, lawyers, doctors etc.
 Real time online banking
Today online banking is the best way to earn profit for the bank. So NCC has to earn
more profit by developing online banking system.

 Creation of brand image

As we know that brand creates value. So NCC need to develop their brand image by
developing their products and services.

Threats
 Similar products are offered by other banks
Now-a-days different foreign and private banks are also offering similar type of products
with an almost similar profit margin. So, if all competitors fight with the same weapon,
the natural result is declining profit.

 Default Loans
The problem of non-performing loans or default loans is very minimum or insignificant.
However, this problem may rise in the future thus; NCC has to remain vigilant about this
problem so that proactive strategies are taken to minimize this problem.
 Industrial Downturn
Bangladesh is economically and political unstable country. Flood, draught, cyclone, and
newly added terrorism have become an identity of our country. Along with inflation,
unemployment also creates industry wide recession. These caused downward pressure on
the capital demand for investment.
 Increased competition in the market
In banking sector day by day competition are increased and lots of new bank are coming
into the competition. So it is big threat for NCC.

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 Chapter -4
Findings and Analysis
4.1 General Banking:
Customer Service,

This department mainly gives service to their customer. The officers of this department
always solve the problem of their customer. Provide information and aware people about
the products of NCC are the main jobs of the officers.

Customer Service

Officer 1 Officer 2

The main function of customer service :

 Information provide to the customer about the product.
 Account opening
 Cheque Book issue
 Cheque received
 Pay Order and Pay Clip issue
 Customers attend
 Customers phone call attend
 Give account information to the customer
 Debit Card issued and delivery

 Cash Department:

The Cash Department manages all of incoming and outgoing cash payments.

Cash Department

Receiving Officer Paying Officer

The main function of cash department:

 Receive the money.
 Verified the notes.
 Pay the money.

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  When branch need money, this department collect money from principal
branch.
 When branch has excess of money, send the money to the principal branch.

4.2 Cash Limit in Panthapath Branch:

Volt Limit 1 Crore

Counter Limit 52 Lac
Transit Limit 90 Lac

Table 8: Cash Limit (Panthapath Branch)

 Clearing / Batch

Collection of cheques, drafts etc. on behalf of its customers is one of the basic function of
a commercial bank. The department which performs this function is known as Clearing
Department. Clearing stands for mutual settlement of claims made in between member
banks at an agrees time and place in respect of instruments drawn on each other within
the same clearing house.

Types of Clearing:

 Outward Clearing: Outward clearing means when a particular branch

receives instrument drawn on the other bank with in the clearing zone and sends
those instruments for collection through the clearing arrangement is considered as
outward clearing for that particular branch.

 Inward Clearing: When a particular branch receives instruments which are

on themselves and sent by other member bank for collection are treated as inward
clearing of that branch.

 Outward Returned: Clearing return (outward) includes those cheques which

were presented to us the preceding clearing by other banks but we have to return
them unpaid to the collecting bank owing to various reason. Return of the 1st
clearing are exchange in the special clearing.

 Inward Returned: Clearing Returns (inward) consists of those instruments

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 which were presented by us to other banks for payment in the preceding clearing
but we have been returned unpaid by them due to one reason or the other through
the Clearing House.

Accounts:
The accounts department performs daily functions of collecting and accounting for taxes,
receipt of grants and other income, preparing deposits, account analysis, payroll, and
processing purchase orders, check requests, paying vendors, monitoring and reporting on
grants and budgets and various other projects to assist tribal members, staff and directors
with accounting administration.
The main function of Accounts:
 Budget Preparation
 Procurement & Payment
 Payroll
 Financial Statements
 Account analysis
 Monthly, half yearly and yearly closing
 Interest updated
 Govt. vat and tax send to the Head Office
 Daly transfer execute
4.3 Credit Department
The credit department approves the loan of Corporate Banking division. The approval is
mainly based on the risk analysis of the corporate clients done by the Corporate Banking
division. The main function is monitoring credit facilities granted by the corporate
banking unit. Its function is to make sure that credit has been provided in a right manner.
This department ensures that internal controls of the corporate relations are maintained.
The main function of Credit department is,
 To manage NCC credit portfolio.
 Processing of credit applications and approvals
 Aware people about the credit scheme.
 Credit disbursement
 Investigating and resolving unauthorized deductions
 To encourage loan repayment loan.
 Collecting from billed customers.

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  Covering added volumes during crunch periods
 Send the statement to the Head Office.
4.4 Foreign Exchange:
The foreign exchange department transfers wherever one currency is traded for another.
Foreign exchange held abroad by foreign nationals or foreign business houses, expect to
the extent responding earning abroad in respect of business conducted in Bangladesh or
service rendered while in Bangladesh.
The main function of Foreign Exchange department is,
 To open import L/C (letter of credit) and make payment their against.
 Verified master L/C and open back to back L/C their against.
 Issue exports L/C
 Received and payment foreign remittance
 Send all types of statement (foreign exchange related) to Bangladesh Bank.

4.5 Job Description:

Through my 90 days internship program, I was worked in NCC Bank Ltd. in Panthapath
Branch. I worked there in two department, these are General Banking and Credit. My job
description is given bellow;-
Front desk job description:
 Information provide to the customer about the product.
 Data entry
 Account opening (Saving Account, Current Account, FDR etc.)
 Account closing (Saving Account, Current Account, FDR etc.)
 Cheque Book serious posting
 Cheque Book issue
 Transfer (money transfer from one account to another)
 Pay Order issue
 Pay Clip issue
 Pay Order posting
 Pay Clip posting
 Phone call attend
 Cut the statement and cheque book issue charge
 Give account information to the customer
 Debit card Issue and Delivery

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Clearing section job description:
 Inward Clearing
 Outward Clearing (send the received cheque to the principal branch)
 Outward return
 Inward return
 Transfer
 Give account information to the customer (cheque deposited or return)
 Call those customers whose cheque is returned.
 Transfer (cut the charge for some purpose)
 Pay Order Adjust
 Pay Clip Adjust
 OBC (Outward Bill for Collection)

Account section job description,

 Check the daily transfer.
 Daily Audit
 Data Entry

Credit section job description,

 Information provide to the customer about the product.
 Data entry
 Account opening (Loan account)
 Type proposal

4.6 Consumer Banking:

Their aim to satisfy all clients, regardless of how big or small they may be. Individuals
are counseled on the best type of accounts suitable to them such as Current, Savings,
Short Term Deposits, Fixed Deposits, Consumer Asset and Liability Products, etc.

Apart from the conventional banking operations NCC strives to introduce an array of
products and services and already launched a number of consumer banking products with
the aim of popularizing consumer banking operations and offer higher return to its clients.

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Consumer Banking Products are:
 Saving Deposit
 Current Deposit
 Fixed Deposit
 Double Growth Deposit Scheme
 Triple Growth Deposit Scheme
 Monthly Benefit Scheme
 Short Term Depos
 Lakhpati Deposit Scheme
 Millionaire Deposit Scheme
 Kotipati Deposit Scheme
 Double Growth Deposit Scheme
 Triple Growth Deposit Scheme
 Monthly Savings Scheme
 Monthly Benefit Scheme
 Marriage Scheme
 Pension Deposit Scheme
 Educational Scheme
 Rural Deposit Scheme
 Mudaraba Hajj Savings Schem

4.7 Credit Management policy of NCC Bank Limited:

Bank’s basic work is to create a channel through depositing money from the surplus unit
and provide funding to borrowers. Thus the necessity of credit department in bank occurs.
The credit department is a very important department of a bank. The money mobilized
from ultimate surplus units are allocated through this department to the ultimate deficit
unit (borrower). The success of this department keeps a great influence over the profit of
a bank. Failure of this department may lead the bank to huge losses or even to
bankruptcy. NCC bank’s credit department also tries to do their job perfectly.

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Credit Policy of NCC Bank,
Lending is one of the most important function of commercial bank, every bank should
have own credit policy. The credit policy of NCC has been formulated on the basis of the
following objectives:
• Outlines the steps to take to collect from past-due or late-paying customers and
how to eliminate bad debt.
• Provides guidelines to legally collect money that is due to your company from
slow or nonpaying customers and from bad checks
• To ensure that all customers are treated fairly when making credit decisions
In NCC most of the credit officers are familiar with their written credit policy or lending
guidelines but few of them not know about credit policy. So they have got only some oral
instruction from the senior management or in charge of credit. If all the Credit officers of
NCC thoroughly know and understand their credit policy it will be very helpful for them
to do their job more efficiently.

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.

• Credit advancement shall focus on the development and enhancement of customer

relationship.
• 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.
• Loans and advances shall normally be financed from customer’s deposit and not
out of temporary funds or borrowing from other banks.
• The bank shall provide suitable credit services for the markets in which it
operates. It should be provided to those customers who can make best use of them.
• 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.
• Interest rate of various lending categories will depend on the level of risk and
types of security offered
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Credit Ratings,
As per Bangladesh Banks mandatory requirement vide BRPD circular No. 06 dated July
05 2006 Credit Rating of NCC Bank Limited was done by the Credit Rating Agency of
Bangladesh Limited (CRAB) on the audited Balance Sheet as on 31.12.2014 CRAB has
submitted their report as under:

Credit Rating Report (Surveillance Rating):

Long Term Short Term

Rating 2017 AA (Very Strong Capacity and Very High ST-2 (High
Quality) Grade)
Rating 2016 A-1( Strong Capacity and High Quality) ST-2 (High
Grade)
Date of Rating June 18, 2015
Validity of June 30, 2016
Rating

Table 9: Credit Rating Ratio (Source: NCC Bank Website)

Credit rating agency of Bangladesh Limited (CRAB) Upgrades the rating of NCC Bank
Limited to AA3 from A-1 and reaffirms short term rating to ST-2. The above rating has
been done in consideration of Banks visible improvement in fundamentals such as
capital adequacy, liquidity position, profitability, introduction of real time online
banking etc. However, the above rating is moderated, to some extent, by limited market
share, increase in NPL, high cost of fund, moderate corporate governance, dependency
on team deposit etc.

Financial institutions rated in this category are adjudged to offer adequate safety to
timely repayment of financial obligation. This level of rating indicates a corporate entity
with an adequate credit profile. Risk factors are more variable and greater in period of
economic stress than those rated in the higher categories. The short term rating indicates
well certain of timely payment. Liquidity factors and company fundamentals are sound.
Although ongoing funding needs may enlarge total financing requirements, access to
capital markets is good. Risk factors are small

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Credit Facilities of NCC Bank Limited,
The main focus of NCC Bank Limited is financing business, trade and industrial activities
through an effective delivery system.
• NCC Bank Ltd. offers credit to almost all sectors of commercial activities having
productive purpose.
• The loan portfolio of the Bank encompasses a wide range of credit programs.
• Credit facilities are offered to individuals including housewives, businessmen,
small and big business houses, traders, manufactures, corporate bodies, etc.
• Loan is provided to the rural people for agricultural production and other off-farm
activities.
• Loan pricing system is customer friendly.
• Prime customers enjoy prime rate in lending and other services.
• Quick appreciation, appraisal, decision and disbursement are ensured.
• Credit facilities are extended as per guidelines of Bangladesh (Central Bank of
Bangladesh) and operational procedures of the Bank.
• Building should be well planned and well constructed.

4.8 Interest Rates of Loans & Advances:

SL # Types of Loan and Advance Interest rate
1 Agriculture 11%
2 Construction 15%
3 Credit Card Monthly 2.55
4 Export 7%
5 Forced Loans 17%
6 Import, Wholesale, Retail Trade 15%
7 Lease Finance, Hire Purchase 15.5%
8 NBFI’s 14%
9 Overdraft against FDR/ Scheme by JBL or Other 14%
Bank
10 Power, Gas, Water, Sanitary 15%
11 SME Priority Sector 10%
12 SME-With Collateral 15%
13 SME-Without Collateral 16.5%
14 Term Loan for Large and Medium Scale Industry 15%
15 Term Loan for Small Scale Industry 14%
16 Transport Storage and Communication 16%
17 Working Capital to Large and Medium Industry 15%
18 Working Capital to Small Industry 15%
Table 10: Interest Rate of Loan & Advance (Source: NCC Bank Website)

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4.9 Securities against Advances:

Types of Credit Securities

House building loan Primary securities: mortgage of the land or any

property

Car loan
Primary securities: joint registration and
comprehensive insurance policy. Two valuable
guarantors.

Collateral securities: mortgage of land or any

property. Any type financial obligation.

Primary securities: joint registration and

Auto loan comprehensive insurance policy.
Two valuable guarantors and post dated cheques

Primary securities: two valuable guarantors and post

Any purpose loan dated cheques.

Pledge or hypothecation of stock-in trade, goods,

Payments against documents(PAD) produce and merchandise, machineries, land or
building on which machineries are installed

Loan Against imported merchandise Pledge of imported merchandise

Loan against trust receipt Trust receipt in lieu of import document

Local bills purchased Bill itself

Primary securities: hypothecation of book depth

Overdraft Collateral securities: mortgage of landed property
and IPA.

Primary securities: Hypothecation of stock of goods

Cash credit in trade duly insured produce merchandise.

Collateral securities: Mortgage of land and building,

any financial obligation

Table 11: Security against Advance (Source: Credit Division, NCC-Panthapath Branch)

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4.10 Sector Wise Payment of loans:

SL Pectoral Structure of Outstanding as As % of Total

No. Lending on 31.12.2015 Loans &
Advances
1 Agriculture And Agro-based 106.68 1.94%
Industry
2 RMG 350.77 6.39%
3 Textile 156.10 2.84%
4 Ship Breaking 41.61 0.76%
5 Other Manufacturing Industry 41.61 0.76%
6 SME Sector 987.70 18.00%
7 Construction 313.13 5.70%
8 Power, Gas 12.52 0.23%
9 Transport, Storage and 166.55 3.03%
Communication
10 Trade Service 1689.62 30.78%
11 Commercial real estate financing 83.27 1.52%
12 Residential real estate financing 85.85 1.56%
13 Consumer Credit 109.58 2.00%
14 Capital Market 87.58 1.60%
15 Credit Card 12.90 0.24%
16 Non-bank financial institutions 21.49 0.39%
17 Bank Acceptance ( i.e. LDBP, 767.28 13.98%
FDBP )
18 Others 188.04 3.43%
Total Loans & Advances 5488.70 100.00%

Table 12: Sector Wise payment of Loans (Source: Annual Report of NCC 2018)

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4.11 How NCC Bank Recovers Their Loan:
When NCC Bank sanctions loans and advances to its customers, they clearly state the
repayment pattern in the loan agreement. But some credit holders do not pay their credit
in due period. The nationalized and private sector commercial banks have to face this sort
of problems. This situation is also found in NCC Bank. To overcome the problem of
overdue loan, the bank has taken particular loan recovery programs.

Recovery Programs taken by NCC Bank Limited,

• Establishing credit supervision and monitoring cell in the bank
• Re-structuring the loan sanctioning and distributing policy of the bank
• Sanctioning loans and advances against sufficient securities as best as possible
• Giving more powers to the branch manager in credit management decision
making process
• Offering a package of incentives to the sound borrowers
• Giving more emphasis on short term loans and advances
• Imposing restrictions on loans and advances for sick industries
• Taking legal actions quickly against unsound borrowers as best as possible within
the period specified by the law of limitations.

4.12 Problems in Loan Recovery:

Though NCC bank is performing better in managing loan and advances, still 12.39% of
total loan and advances are classified. There are a lot of reasons for which the loan
recovery of the bank is still now defective. In most cases, problems may be raised from
sanctioning procedures of loan, investigation of the project, and investigation of the loans
etc. that is, the problem in loan recovery proves the outcomes of the default process in
loan disbursement.
The main reasons of poor loan recovery are categorized in four broad types as follow:
A. Problems created by economic environment.
i. . Changing in the management pattern: Changing of management patterns may
delay the recovery of mature loan.

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 • Changing in industrial patterns: The banks sometimes sanction loan to the losing
concern for further improvement of the respective sector, but in most cases, they
fail to achieve progress.
Operation of open market economy: In our country mainly industries become sick and
also close their business on account of emerging of open market economy. The cost of
production is high and the quality of goods is not of required of standard. As a result, they
become the losing concerns and the amount of bad loan increases.

• Rapid expansion of business: There are many companies which expand their
business rapidly, but the expansion is for short time. In the long run, the amount of
classified loan increases

B. Problems created by government:

• External pressure: NCC Bank has also faced many problems in the loan recovery
process as a part of continuous pressure from various interested groups.
• Legal problems: Existing rules and regulations are insufficient to cover the legal
aspects of loan recovery. As a result, defaulters can get release easily from all
charges against them.
• Instability of Govt. policy: Frequent changes in Government policies in regard to
recovery of loan.
C. Problems created by the bank:
• Lack of analysis of business risk: Before lending, Sometime NCC Bank fails to
properly analyze the business risk of the borrowers and the bank cannot forecast
whether the business will succeed or fail. If it fails to run well, the loan becomes
classified.
• Lack of proper valuation of security or mortgage property: In some cases, bank
fails to determine the value of security against the loan. As a result, if the loan
becomes classified, the bank cannot recover its loan through the sale of mortgage.

4.13 (Five) Year key Financial Data & ratio of NCC Bank:

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Shareholder’s Information
Taka in BDT. Million
Particulars Yr 2018 Yr 2017 Yr 2016 Yr 2015 Yr
2014

Income Statement Information

Interest Income 10,269.61 9,697.92 9,626.68 8,473.44 5,207.52
Interest expense 8,838.96 8,078.04 7,787.48 6,310.59 3,726.52
Net Interest Income 1,430.65 1,619.88 1,839.20 2,162.85 1,481.00
Income from Investment 3,267.68 2,660.31 2,007.15 1,404.67 1,152.79
Non Interest Income 1,392.31 1,355.47 1,438.77 1,296.37 1,112.78
Non Interest Expense 3,021.83 2,666.75 2,078.22 2,046.50 1,335.61
Net Non-interest Income & 1,638.16 1,349.03 1,367.70 654.54 929.96
Investment Income
Profit before Provision and 3,068.61 2,968.91 3,206.90 2,817.39 2,410.96
Tax
Provision for Loans and Asset 1,221.43 684.02 1,126.38 347.39 344.44
Profit after provision before 1,847.41 2.284.89 2,080.52 2,470.00 2,066.52
Tax
Contribution to NCC Bank 36.95 22.85 20.81 12.35 10.32
Foundation
Tax including deferred tax 463.31 1,126.85 1,017.66 1,127.46 990.18
Profit after contribution to 1,347.12 1,135.19 1,042.05 1,330.19 1,066.02
foundation and tax

Balance Sheet Information

Authorized Capital 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Paid Up Capital 5,160.67 4,487.54 4,487.54 3,648.40 2,230.09
Reserve and Retained 5,650.00 4,393.40 3,837.29 3,633.11 4,178.10
surplus
Total Shareholder’s Equity 10,810.67 8,880.94 8,324.83 7,281.51 6,408.1
Deposits (Core & Bank) 114,635.13 97,485.61 79,623.13 70,508.05 60,673.56
Total Liabilities 128,683.91 106,282.01 101,353.68 79,783.62 63,605.71
Total Liabilities and 139,494.58 115,162.95 109,678.51 87,065.13 70,013.90
Shareholder’s Equity
Long Term Liabilities 32,922.17 32,618.54 15,395.83 13,788.24 11,564.26
Loan and Advances 77,899.79 67,669.38 54,887.03 56,611.79 49,734.80
Investments 39,963.54 31,392.20 39,118.93 16,314.93 10,891.02
Property, Plant and 2,278.50 2,195.05 2.082.03 1,971.72 1,822.66
Equipment
Total Asset 139,494.58 115,162.95 109,678.51 87,065.13 70,013.90
Earning Asset 74,563.30 66,608.33 58,969.03 62,461.62 50,886.80
Net Current Asset 71,648.34 61,412.87 53,959.73 54,381.79 44,476.30

Credit Quality Information

Volume of Non- 4,422.15 5,133.76 5,337.87 1,618.73 905.52
performing Loans
(NPLs)
% of NPLs to Total Loan 5.68 7.59 9.73 2.86 1.82
and Advances
Provision for Un-classified 1,096.86 937.67 814.67 804.87 718.17
Loans
Provision for Classified 1,796.86 2,256.68 1,698.25 627.30 453.76
Loans
Table 17: Five Year Key Financial Data (Source: Annual report of NCC 2016)

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4.14 Credit Distribution of NCC Bank:

From previous 5 year annual report I have analyzed some important data which is related
to credit activities of NCC. The analyzed information is shown below by creating
different chart graphs etc.:

Year wise Deposit

Taka in BDT.
Million
Year Total Deposit

2014 60674.56

2015 70508.05

2016 79623.13

2017 97485.61

2018 114,635.13

Table 22: Year wise Deposit (Source: Annual report of NCC 2018)

Year wise deposits of NCC are increasing year by year. In 2014 the total deposit was TK.
60674.56 million. It was increased to TK. 114,635.13 million in 2018. From the graph it
is seen that growth rate from year 2017 to 2018 is 23% which indicates positive
perception toward NCC from clients point of view.

Year wise Loans & Advances

Taka in BDT. Million
Year Total loan and Advances

2014 49,734.80

2015 56,611.79

2016 54,887.03

2017 67,669.38

2018
77,899.79

Table 23: Year wise loan & Advances (Source: Annual report of NCC 2018)

Here we see that total loans & advances of NCC are increasing 2014 – 2018. This is
because of their attractive and flexible loan packages. But in 2015 their total loans and
advances is decreased by 3.14% compare to 2018. The main reason of decreasing loans
and advances, the competitive bank come up with a new loan policy which is more
attractive than our loan policy.

4.15 Sector Wise Credit Distribution:

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 Sector Wise Credit Distribution Agriculture

Construction

Credit Card Monthly

Export

6% 5%
6% 1% Forced Loans
6%
3%
Import, Wholesale, Retail Trade
7%
7%
Lease Finance, Hire Purchase
6%
NBFI’s
6%

6% Overdraft against FDR/ Scheme

by JBL or Other Bank
7%
Power, Gas, Water, Sanitary
7%
6%
SME Priority Sector
6%
6%
4% 6% SME-With Collateral

SME-Without Collateral

Term Loan for Large and

Medium Scale Industry
Term Loan for Small Scale
Industry

Graph 12: Sector Wise Credit Distribution

From the figure it can easily be said that NCC provides more loan in Trade service sector.
In 2017 it provided total loan and advances to several sector. But in agriculture sector
they discourage to sanction loan because they think this sector is risky, in 2017 NCC
provide loan in agriculture sector only 5%.

4.16 Classification Status of Loan:

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 Classification Status % Total Loan Outstanding ( In Million)
Standard 93.45% 7,279.63
Special mention Account 0.87% 68.13
Sub-standard 0.50% 38.76
Doubtful 0.43% 33.19
Bad/Loss 4.75% 370.27
Total 100.00% 7,789.98

Table 24: Classification status of Loan (Source: Annual report of NCC 2014)

4.16.1 Interest Earn on Lending:

Year Total Interest on Lending

2018 10269.61

2017 9697.92

2016 9626.68

2015 8473.44

2014 5207.52

Table 25: Interest earn on Lending (Source: Annual report of NCC 2018)

4.17 Provision for Loan:

Provision for Unclassified Loans,
Year Provision for Unclassified Loan
2018 718.17
2017 804.897
2016 814.67
2015 937.67
2014 1,097.74

Table 28: Provision for Unclassified Loan (Source: Annual report of NCC 2018)

The Percentage of Un-classified loans decrease in 2018 due to recovery, regularized and
written off of bad loans following Bangladesh Bank guidelines. Required provision has
been kept against all non-performing loans and advances as per directive of Bangladesh
Bank law.

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Provision for Classified Loans
Year Provision for Classified Loan

2014 453.76
2015 627.30
2016 1,698.25
2017 2,256.68
2018 1,796.86
Table 29: Provision for Classified Loan (Source: Annual report of NCC 2018)

The Percentage of Classified loans decrease in 2018 due to recovery, regularized and
written off of bad loans following Bangladesh Bank guidelines. Required provision has
been kept against all non-performing loans and advances as per directive of Bangladesh
Bank law.

4.18 Trend Analysis:

Current year amount – Base year amount
Percent change = ×100
Base year amount

2018 2017 2016 2015 2014

Net earn on interest on 10269.61 9697.92 9626.68 8473.44 5207.52
lending
Provision for Loans 1121.43 684.02 1126.38 347.39 341.4
Loans 77899.79 67669.38 54887.03 56611.09 49430.50
Loan to deposit Ratio 67.95% 69.41% 68.93% 80.29% 81.47%
Non-performing loan ratio 5.68% 7.59% 9.73% 2.86% 1.82%
Debt Equity ratio 9.43 9.41 10.46 10.33 10.56

Table 30: Trend Analysis

In 2018 NCC provide more loan so NCC earn more interest than previous year and
provisions for loan also high than other year. Loan to deposit ratio is low than other year
that means NCC maintain more liquidity than other year. Their debt equity ratio also
lowers by year by year. That means NCC minimizing its finance by debt than other year.

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4.19 Hypothesis Testing:

Summarization of variables

Year ROE ROA NPL/TL

2014 21.0 1.8 7.3

2015 19.45 1.69 2.85
2016 13.35 1.06 9.72
2017 13.20 1.06 5.68
2018 13.68 1.01 7.59

Table 34: Summarizations of variables

Significance level = 5%
ROE vs. Percentage of NP

35

30

25

20
NPL/TL
ROA
15
ROE

10

0
2014 2015 2016 2017 2018

Graph 20: ROE vs. Percentage of NPL

Diagram shows a slight negative correlation between ROE and NPL. Since non-
performing loans is an indicator to poor credit risk management. If NCC can reduce the
percentage of Non-performing loan it will earn more profit. We therefore expect better
credit risk management is related to lower non-performing loans.

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4.20 Major Finding:
The study has been made to find out the credit operating system, their credit policies and
procedures of loan supervision and recovery, especially their classified loans of NCC
Bank Ltd. And after discussing their credit system, procedure of loan recovery and
analyze their performance of loan and advance department including the classified loans,
The findings of the study are as following:-
 The lack of training facilities of NCCBL’s executives on Consumer Credit to
provide unique solution for their financial situation.
 NCCBL offer 15% interest rate almost all of their consumer credit schemes which
is comparatively lower than the Dhaka Bank, AB Bank and South East Bank .
 NCCBL provide maximum TK300000 for education loan. This amount is less
than the Dhaka Bank, AB Bank and South East Bank.
 The Bank is lacking from the online collaboration.
 The existing client judgment system for consumer evaluation is not so rigorous.
 The major portion of the loan goes to the pocket of those who are wealthy. This
means that the targeted people are not getting loan.
 Only one manpower for covering a scheme is a tough matter. Most of the branch
has only one man.
 There is no Proper Consumers’ Credit Budget for each Branch.
 The down payment paid by customers is very high for Consumer credit schemes.
 Interest rate and payback period are very important criteria for any kind of loan
but most of the clients are not satisfied to NCCBL Consumer Credit interest rate
and loan payment period.
 The process of taking consumer credit scheme of NCCBL is lengthy.
 It is very unusual that many people who have the ability to avail the loan even do
not know about consumer credit schemes.
 Limited differentiation of product to gain competitive advantage.
 In case of use of Management Information Systems- an important determinant of
making the banks more competitive, I think the position of NCCBL is lagging
behind in comparison to other private banks, such as Dhaka Bank Limited, South
East Bank that are thought to be its major competitor.
 Limitations of ATM facilities, Debit card, and other modern technological
products for the valued customers.

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 Chapter: 5
Recommendations and
conclusion
5.1 Recommendations:
As we all know NCC is one of the well known banks in our country. From my little
knowledge it’s quite hard to give recommendation to such a well established bank. Still
from my learning and observation, here giving following recommendation to follow:

 NCC need to more concentrate on loan and advance services. And they need to
offer attractive packages to promote their loan and advance product.
 Maximum amount of loan is provided to the long-term industrial sectors. They
intentionally ignore the agriculture sector because of riskiness and safety issues.
But for the overall economic development of the country they should diversify
their loans in agriculture sector.
 NCC has only 104 branches all over the country. Since day by day their demand is
increasing so it is quite hard to provide full range services with those branches. So
they need to put more attention toward the expansion of branch network as well as
ATM Booths.
 For improving the recovery position and reducing huge over due loans, first action
needed to attract political support and urge upon the govt. and political parties to
take necessary steps for repayment of defaulted loans within a limit.
 New credit culture needs to be developed in place of default culture. Efforts to be
taken as soon as possible to safeguard the interest of banking sector.
 Real value of business can come from making regular visits to the customer's
place of business rather than holding all meetings in the Bank.
 NCC earns Maximum profit from Dhaka City. So NCC needs to spread their all
over the Bangladesh.

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5.2 Conclusions:
National Credit and Commerce Bank Ltd. is a commercial bank launched its operation in
1993. It has already developed goodwill among its clientele by offering its excellent
services by different divisions. This success has resulted from the dedication,
commitment and dynamic leadership among its management over the periods. The
working atmosphere of the NCC Bank Limited is very simulating. During the short span
of time of its operation, the bank has been successfully to the position itself as a
progressive and dynamic financial institution in the country.

Credit policy is a very convenient banking tool for the business world. The value of this
service is immense. It has gathered such a position in the banking sector that people at
developed and also developing counties are very much depended on this service. In
Bangladesh credit facilities or loans started to become very attractive in recent periods.
But still lots improvements in services and facilities have to be made in this department.

Credit Division of NCC Bank has a very qualified and dedicated group of officers and
staffs who are always trying to provide the best service to the clients. They always
monitor the credit in different sectors and their position. Before providing the loan they
analyze whether the loan will be profitable and whether the client is good enough to repay
the loan within the given period of time.

The main competitive advantage NCC is enjoying that it has online banking where as
other local commercial bank cannot yet achieve that advantage. But all the commercial
banks are now trying to achieve this. In this bank the employees are highly motivated by
their remunerations and other benefits. Here, all the employees are very much cooperative
with their customers, colleagues and simply visitors.

NCC Improved economic conditions of both rural and urban area.

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References
National Credit and Commerce Bank Limited (2014-2018)
Credit Division Manual of NCC

Several Booklets from NCC Bank Limited

Other internship reports of NCC

NCC Half Yearly Report (2018)

www.nccbank.com.bd
(NCC Bank Ltd. Home)

www.bb.org.bd
(Bangladesh Bank Home)

www.dsebd.org
(Dhaka Stock Exchange Home)

www.cse.com.bd
(Chittagong Stock Exchange Home)

www.bibm.org.bd
(Bangladesh Institution of Bank Management Home)

www.wikipedia.org

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