CHAPTER – 1

INTRODUCTION

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1.1 INTRODUCTION
Generally by the word "Bank" we can easily understand that the financial institution deals with
money. But there are different types of banks like, Central Bank, Commercial Banks, Savings
Banks, Investment Banks, Industrial Banks, Cooperative Banks etc. But when we use the term
Bank" without any prefix, or qualification it refers to the "Commercial Banks". A commercial
bank is a type of financial intermediary and a type of bank. Commercial banking is also known
as business banking. It is a bank that provides checking accounts, savings accounts, and money
market accounts and that accepts time deposits. Traditionally, large commercial banks also
underwrite bonds, and make markets in currency, interest rates, and credit-related securities, but
today large commercial banks usually have an investment bank arm that is involved in the
mentioned activities.
Banking sector is expanding its hand in different events every day. At the same time the banking
process is becoming faster, easier and the banking arena becoming wider. As the demand for the
better service increase day by day, they are coming with different innovative ideas and products In
order to survive in the competitive field of the banking sector, all banking organization looking for
better service opportunities to provide their fellow clients.

1.2 BACKGROUND OF THE STUDY

Internship program is a mandatory for all students of BBA under National or Private University
Practical orientation is a positive development in professional area. So, after completion of BBA
program under Department of Finance, Bangladesh University of Business and Technology,
three months organizational attachment is must. However, internship program is a perfect blend of
the theoretical knowledge and practical experience. As the classroom discussion alone cannot make
a student perfect in handing the real business situation, therefore it is an opportunity for the students
to know about real life situation through this program. This report is outcome of 12 weeks long
internship program conducted in Janata Bank Ltd. at Mirpur-1 Corporate Branch My internship
supervisor Mithun Al-Mamun, Lecturer, Department of Finance suggested me the topic of my
report name "Credit Management of Janata Bank Ltd."

1.3 SCOPE OF THE STUDY

The study encompasses:
 An overview of Janata Bank Ltd
 Credit management of Janata Bank Ltd
 Credit performance of Janata Bank Ltd.

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1.4 OBJECTIVES OF THE STUDY
Broad Objective: The broad objective of this report is to analyze the "Credit Management
of Janata Bank Limited"
Specific Objective: The specific objectives of the study are:
 To know about the lending procedure of JBL
 To analyze the year, sector & geographical location wise loans & advances.
 To analyze the classified loans & advances over the years

1.5 METHODOLOGY OF THE STUDY

1.5.1 Research Design:
The study, analysis of credit disbursement and recovery performance of Janata Bank Ltd, is
descriptive in nature which is mainly based on secondary data. The study focuses on credit
disbursement and recovery performance of Janata Bank Ltd.

1.5.2 Sources of Information:

The study is mainly based on secondary data. The annual report of Janata Bank Ltd., website of
Janata Bank Ltd, annual report of Bangladesh Bank and different text book are the major data
sources in this report. Though the use of primary data is very limited in this report, some
information has been collected from the opinions of official of Janata Bank Ltd. The secondary
data are collected from the period of five years from 2012-2016.

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1.5.3 Tools Used In Data Analyzing and Reporting:
Trend and comparative analysis have been made to analyze the credit performance of Janata
Bank Ltd. different types of computer software such as Microsoft word, Microsoft excel and so
on are used for analyzing and reporting of the study. The ratio analysis is conducted in from of
trend analysis.
 Trend analysis: Trend analysis is the analysis of firm's performance over time
really important to analyze trends in ration informs us whether a company's financial
condition improving or deteriorating as well as their absolute levels. This analysis
informs us whether a company’s financial condition is improving or deteriorating.
 Comparative analysis: The item-by-item comparison of two or more comparable
alternatives, process, products qualifications sets of data, system, the like, in accounting
for example, changes in a financial statements items over several accounting periods may
be presented together to detect the emerging trends in the company's operations and results.

1.6 LIMITATIONS OF THE STUDY

In performing this report my lacking of proper knowledge greatly influenced in this performance
I tried my best to make the report complete. But while conducting the report, I have faced the
following limitations
 The first obstacle was that they would not provide any remuneration even for doing
internship in JBL. It is not an easy task to concentrate hard without any benefit. As the
officers are very busy with their daily work, they could provide very little time.
 Limitation of time was one of the most important factors that shortened the present study
Due to time limitation many aspects could not be discussed in the present study
 Confidentiality of data was another important barrier that was faced during the conduct of
this study. Every organization has their own secrecy that is not revealed to others. While
collecting data on JBL, personnel did not disclose enough information for the sake of
confidentiality of the organization.

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 CHAPTER – 2
OVERVIEW OF JANATA BANK

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2.1 OVERVIEW OF THE JANATA BANK LIMITED
Janata Bank Limited, a leading state owned commercial bank with 912 outlets strategically located
in almost all the commercial areas throughout Bangladesh, overseas Exchange Houses and
hundreds of overseas Correspondents, came into being as a Public Limited Company on May 17,
2007 with a view to taking over the business, assets, liabilities, rights and obligations of the Janata
Bank Limited which emerged as a nationalized commercial bank in 1972 immediately after the
emergence of Bangladesh as an independent state. Janata Bank Limited started functioning as a
going concern basis through a Vendors Agreement signed between the ministry of finance,
Government of the People's Republic of Bangladesh on behalf of the former Janata Bank Limited
and the Board of Directors of Janata Bank Limited on November 15, 2007 with retrospective effect
from 01 July, 2007. Janata Bank Limited was born with a new concept of purposeful banking sub
serving the growing and diversified financial needs of planned economic development of the
country.
Janata Bank Limited, one of the state owned commercial banks in Bangladesh, has an authorized
capital of BDT. 30000million, paid up capital of BDT 19,140.00 million. The Bank has a total asset
of Tk 684217.75million as on 31st December 2016 Immediately after the emergence of Bangladesh
in 1971, the erstwhile United Bank Limited and Union Bank Limited were renamed as Janata Bank
Limited. On 15th November, 2007 the bank has been corporatized and renamed as Janata Bank
Limited. Janata Bank Limited operates through 912 branches including 4 overseas branches at
United Arab Emirates. It is linked with 1202 foreign correspondents all over the world. The Bank
employs more than 15(fifteen) thousand persons.
The mission of the bank is to actively participate in the socio- economic development of the nation
by operating a commercially sound banking organization, providing credit to viable borrowers,
efficiently delivered and competitively priced, simultaneously protecting depositor's funds and
providing a satisfactory return on equity to the owners.
The Board of Directors is composed of 13 (Thirteen) members headed by a Chairman. The Directors
are representatives from both public and private sectors. The Bank is headed by the Managing
Director &Chief Executive Officer, Managing Director is assisted by Deputy Managing Directors
and General Managers. The bank has 7 Circle offices, 30 Divisions in head office, 52 zonal offices
and 912 branches including 12 corporate and 40 AD( authorized dealer) branches. The corporate
and AD branches are authorized to deal in foreign exchange business.

2.2 MISSION OF JANATA BANK LIMITED

Janata Bank Limited will be an effective commercial bank by maintaining a stable growth strategy,
delivering high quality financial products, providing an experienced management team and
ensuring good corporate governance in every step of banking network.

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2.3 VISION OF JANATA BANK LIMITED
The vision of Janata Bank Limited is to become the effective largest commercial bank in
Bangladesh to support socio-economic development of the country and to be a leading bank in
South Asia.

2.4 OBJECTIVES
To earn customer satisfaction through diversified banking activities and introduction of innovative
banking.
 To improve the customer services in recent times by introducing a number of IT-based
reform measures.
 To remain one of the best banks in Bangladesh in terms of profitability and Asset quality.
 To ensure an adequate rate of return on investment.
 To maintain adequate liquidity to meet maturing obligations and commitments.
 To maintain a healthy growth of business with desired image.
 To maintain adequate control systems and transparency in procedures.
 To ensure optimum utilization of all available resources.

2.5 VALUES
 To have a strong customer focus arid build relationship based on integrity, superior service
and mutual benefit.
 To work for business innovation and improvements
 To value and respect the people and make decision based on the merit.
 To provide recognition and reward on perfomance
 To be responsible, trustworthy and law-abiding in every sphere.
 To become the base bank in respect of service, profitability and strength.

2.6 SLOGAN OFJANATA BANK LIMITED

"A committed partner in progress" is the slogan of Janata Bank Limited.

2.7 CORPORATE VALUE

Janata Bank Limited (JBL)'s Core Value proposition consists of ten key elements. The values would
assist the bank in perceiving its employees to work as a team towards accomplishment of assigned
duties and responsibility for achievement of desired objectives.
Team work: Open communication, discussion and interaction amongst the employees would ensure
unification of actions and efforts towards achieving the common goal.
 Ethics: Everyone must ensure adherence to ethical practices of banking
 Objectivity: All persons will have definite objective in carrying out their tasks
 Integrity: Protection and safeguard of customers' interest is a vital element for
societal trust.

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  Excellence: Excellent performance and effectiveness are preconditions to ensure
quality service to the large customer base of the bank.
 Innovation: New and innovative products are the needs of the time for which
continuous action oriented researches are carried out.
 Commitment: Every employee is committed to work up to the expected level to
ensure satisfaction of valued customers.
 Self-Reliance: Each employee will have ownership attitude towards the bank and self
confidence in his work for betterment of the bank
 Transparency: Information is to be kept open for all so that stakeholders can have
proper ideas about the bank's activities.
 Accountability: All employees are responsible for their activities and will remain
accountable to their respective superior for accomplishment of tasks.

2.8 CORE STRENGTH

 Transparent and Quick Decision Making
 Efficient Team of Performer
 Satisfied Customers
 Internal Control.
 Skilled Risk Management
 Diversification

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2.9 CORPORATE INFORMATION
Features Values
Name Janata Bank Limited
Genesis Janata Bank Limited, the 2nd largest State Owned Commercial Bank (SCB) in
Bangladesh, is playing pivotal role in overall financial activities of the country The
Bank emerged as 'Janata Bank by combining the erstwhile United Bank Limited and
Union Bank Limited under the Banks Nationalization Order (President's Order- 26)
of 1972 and wars restructured as a limited company in November, 2007, Since
inception in 1972 the Bank has commendably contributed to the socio-economic
development of Bangladesh and helped structuring solid financial ground of the
country as well. Janata Bank runs its business with 911 branches across the country
including 4 overseas branches in United Arab Emirates.

Registered Address JanataBhaban, 110, Motijheel Commercial Area Dhaka 1000, Bangladesh
Logo

Legal Status Public Limited Company

Chairman Shaikh Md. Wahid-Uz-Zaman
CEO & MD MD. Abdus Salam
Company Secretary Hussain Yeahyea Chowdhury
Date of Incorporation 21 May, 2007
Authorized Capital BDT 30,000 Million
Paid up Capital BDT 19,140 Million
Face value per share BDT 100 per share
Shareholding Pattern 100% Share owned by the Government of Bangladesh
No. of Employees 12,939 (As on 31.03.2017)
Banking License 31 May, 2007
Obtained From
Bangladesh Bank
Phone +88 02-9560000, 9566020, 9556245-49, 9565041-45, 9560027-30
Fax 88-02-9554460, 9553329, 9552078
SWIFT JANBBDDH
Website www.jb.com.bd
E-mail md@janatabank-bd.com

Table 2.1 : Profile of JBL

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2.10 OVERVIEW OF JANATA BHABAN CORPORATE BRANCH

Branch Name Mirpur section-1, Corporate Branch Dhaka.

Address 1-d, 9/35, Mirpur-1, Dhaka-1116

Phone Number 9002943, 55075099

Email jb0143@janatabank-bd.com

Total No Of 23
Employees

2.11 A DECORATED LIST OF BRANCHES OF JANATA BANK LIMITED

Local Office 1

Corporate-1 Branch 21

Corporate-2 Branch 68

Overseas Branch 04

Grade-1 Branch 197

Grade-2 Branch 209

Grade-3 Branch 295

Grade-4 Branch 117

Total Branches 912

Table 2.2: Number of Branches

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2.12 SERVICES PROVIDED BY JANATA BANK LIMITED

Janata Bank Limited offers all the major banking facilities and services to its customers. The bank
with its network spreading throughout the country has a unique feature of plunging back savings
from those places and then investing them in different portfolios.

General Service  General Service

 Savings Account
 Current Account
 Corporate Account
 Short term Deposit
Deposit Service  Fixed Deposit Scheme
 Special Savings Scheme
 Special Deposit Scheme
 Monthly Income Scheme
 Monthly Savings Scheme
 Education Saving Scheme
Loan Scheme  Loan General
 Deposit Service
 Loan Scheme
 Terms Loan
 Transport Loan
 Project Loan
 Loan against Imported Merchandise
 Loan against Trust Receipt
 Loan Against Packing Credits
 Loan Against House Building
 Housing Loan Scheme
 House Repairing Loan Scheme
 Consumers Finance Scheme
 Festival Small Business Loan Scheme
 Festival Personal Loan Scheme
 Small Business Loan Scheme
 Personal Loan Scheme

Table 2.3: Service of JBL

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2.13 ORGANIZATIONAL HIERARCHY

There are 13 members of Board of Directors manage Janat Bank Limited. For efficient operation
of the bank the Board of directors forms an Executive Committee of 19 members. Besides, a
management Committee looks after the affairs of the bank. The Bank maintains transparency in its
entire works. All decisions of the management come through discussions in appropriate forum and
required follow-ups are also made to see their effectiveness. Here are the management team given
in a chart and the hierarchy of the JBL is given in below.

Chairman
Managing Director

Deputy Managing Director

General Manager
Deputy General Manager
Assistant General Manager
Senior Principal Officer
Principal Officer
Senior Officer
Officer

Figure 2.4: Organizational Hierarchy of JBL

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 CHAPTER – 3
THEORETICAL ASPECT

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3.1 DEFINITION OF CREDIT
The word credit comes from the Latin word "Credo" meaning "To believe". A credit is the trust
which allows one party receives resource or wealth from another party and promises to repay him
on a future date along with interest. In other words, credit is a method of making reciprocity formal,
legally enforceable, and extensible to a large group of unrelated people.

3.2 CREDIT MANAGEMENT& ITS OBJECTIVES

3.2.1 Credit Management:
One of the two primary functions of a commercial bank is to extend credit to the deficit economic
unit that comprises borrowers of all types. Bank credit is a catalyst of economic development.
Without adequate finance, there can be no growth in the economy. Bank lending is important for
the economy in the sense that it can simultaneously finance all of the sub-sectors of financial arena,
which comprises agricultural, commercial and industrial activities of a nation. Therefore, a bank is
supposed to distribute its investment fund among economic agent-in-deficit in a manner that it will
generate sufficient income for it and at the same time benefit the borrower to overcome his/her
deficit.
3.2.2 Objectives of Credit Management:
Credit Management, also known as credit control, is activity aimed at serving the dual purpose of-
 Increasing sales revenue by extending credit to customers who are deemed a good credit
risk.
 To increase the cash flow through the daily collection.
 To reduce the risk of default payments
 The main objective of credit management is credit risk management which means to
develop better credit portfolio/asset. If the credit portfolio is better than debts can be
recovered otherwise debts will end up as bad debts, resulting in financial loss for the
organization. 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 maximize the return on the invested fund.

3.3 CREDIT RISK

A credit risk is the risk of default on a debt that may arise from a borrower failing to make required
payments. In the first resort, the risk is that of the lender and includes lost principal and interest,
disruption to cash flows, and increased collection costs. The loss may be complete or partial. In an
efficient market, higher levels of credit risk will be associated with higher borrowing costs. Because

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of this, measures of borrowing costs such as yield spreads can be used to infer credit risk levels
based on assessments by market participants.

3.4 CREDIT RISK MANAGEMENT

The risk management contains those components. This are-
 Risk identification
 Risk measurement
 Risk monitoring
 Risk control
 Planning and management

3.5 IMPORTANCE OF CREDIT RISK MANAGEMENT FOR BANK

The importace of credit risk management for banking is tremendous. Banks and other financial
institutions are often faced with risks that are mostly of financial nature. These institution balance
risks as well as returns. For a bank to have a large consumer base, it must offer loan products that
are reasonable enough. However, if the interest rates in loan products are too low the bank will
suffer from losses. In terms of equity, a bank must have substantial amount of capital on its reserve,
but not too much that it misses the investment revenue, and not too little that it leads itself to
financial instability and to the risk of regulatory non-compliance. Credit risk management, in
finance terms, refers to the process of risk assessment that comes in an investment. Risk often comes
in investing and in the allocation of capital. The risks must be assessed so as to derive a sound
investment decision. Likewise, the assessment of risk is also crucial in coming up with the position
to balance risks and returns. Banks are constantly faced with risks. There are certain risks in the
process of granting loans to certain clients. There can be more risks involved if the loan is extended
to unworthy debtors. Certain risks may also come when banks offer securities and other forms of
investments. The risk of losses that result in the default of payment of the debtors is a kind of risk
that must be expected. Because of the exposure of banks to many risks, it is only reasonable for a
bank to keep substantial amount of capital to protect its solvency and to maintain its economic
stability. The second Basel Accords provides statements of its rules regarding the regulation of the
bank's capital allocation in connection with the level of risks the bank is exposed to. The greater the
bank is exposed to risks, the greater the amount of capital must be when it comes to its reserves, so
as to maintain its solvency and stability. To determine the risks that come with lending and
investment practices, banks must Credit risk management must play its role then to help banks be
in compliance with Basel II Accord and other regulatory bodies. To manage and assess the risks
faced banks, it is important to make certain estimates, conduct monitoring, and perform reviews of
the performance of the bank. Credit risk management for banking is a very useful system if the risks
are in line with the survival of banks in the business world.

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3.6 GUIDELINES FOR CRM BY BANGLADESH BANK
In February 2012 department of off-site supervision of Bangladesh bank issued "Risk Management
Guidelines for Banks" (Bangladesh Bank, 2012) for all scheduled bank in Bangladesh. These
Guidelines have been prepared with these international standards in mind most notably Principles
17, 18, 19, and 20 of the Core Principles for Effective Banking Supervision, issued in 2012 by the
Basel Committee on Banking Supervision.

3.7 RISK GRADING

Risk Rating Grade Definition
Superior Low Risk 1  Facilities are fully secured by cash deposits
 All Security documentation should be in place.
Good Satisfactory 2  The repayment capacity of the borrower is strong.
Risk  The borrower should have excellent liquidity and
low leverage.
 The company should demonstrate consistently
strong earnings and cash flow and have a JBL
enmeshed track record
Acceptable Fair Risk 3  Adequate financial condition though may not be
able to sustain any major or continued setbacks.
These borrowers are not as strong as Grade 2
borrowers, but should still demonstrate consistent
earnings, cash flow and have a good track record. A
borrower should not be graded better than 3 if
realistic audited financial statements are not
received.
Marginal Watch list 4  Grade 4 assets warrant greater attention due to
conditions affecting the borrower, the industry or
the economic environment.
Special Mention 5  Grade 5 assets have potential weaknesses that
deserve management's close attention.
 Facilities should be downgraded to 5 if sustained
deterioration in financial condition is noted if loan
payments remain past due for 30-60 days, or if a
significant petition or claim is lodged against the
borrower.

Table 3.1: Risk Grading

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Substandard 6  An Aggregate Score of 45-54 based on the Risk
Grade Scorecard.
 Financial condition is weak and capacity or
inclination to repay in doubt.
 Loans should be downgraded to 6 if loan payments
remain past due for 60-90 days.
Doubtful 7  Full repayment of principal and interest is unlikely
and the possibility of loss is extremely high.
 However, due to specifically identifiable pending
factors, such as litigation, liquidation procedures or
capital injection, the asset is not yet classified as
Loss.
Bad and Loss 8  The prospect of recovery is poor and legal options
have been pursued.
 The proceeds expected from the liquidation or
realization of security may be awaited. The
continuance of the loan as a bankable asset is not
warranted, and the anticipated loss should have been
provided for.

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 CHAPTER – 4
CREDIT MANAGEMENT OF JANATA
BANK LIMITED

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4.1 LOAN AND ADVANCE
It is clear that loans and advances are two different terms. Loans are the source of long-term finance
while the Advances are granted by the banks to meet short-term financial requirements i.e. they are
repayable within one year. Interest is charged on both as well as both are repayable either in a lump
sum or installment or on demand.
4.1.1 Loan: A loan is the lending of money from one individual, organization or entity to
another individual, organization or entity. A loan is a debt provided by an entity
(organization or individual) to another entity at an interest rate, and evidenced by a
promissory note which specifies, among other things, the principal amount of money
borrowed, the interest rate the lender is charging, and date of repayment. A loan entails the
reallocation of the subject asset(s) for a period of time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called the
principal, from the lender, and is obligated to pay back or repay an equal amount of money
to the lender at a later time. The loan is generally provided at a cost, referred to as interest
on the debt, which provides an incentive for the lender to engage in the loan. The amount
lent by the lender to the borrower for a specific purpose like the construction of the building,
capital requirements, and purchase of machinery and so on, for a particular period of time
is known as Loan. In general, loans are granted by the banks and financial institutions. It is
an obligation which needs to be repaid back after the expiry of the stipulated period.
4.1.2 Advance: Advances are the source of finance, which is provided by the banks to the
companies to meet the short-term financial requirement. An advance is a credit facility that
is provided to an individual/corporation by the financial institution, bank, employer, friend,
relative etc. Advances are generally for shorter term and will be recovered by the bank
during a shorter period of time. Advances are commonly taken on an employee's salary.

4.2 LOAN CLASSIFICATION

Loan classification attempts to categorize the debt information in a systematic manner. Loan
classification is defined in terms of degree of risk associated with loans. Classification of loans
mean and include only such assets of the balance sheet of a bank which do not yield interest income
and which have remained past due for some quarters.
4.2.1 Secured Over Draft Against Financial Obligation [SOD (FO)]:
Advance is granted to a client against financial obligations. The security of advance the person to
whom the instrument belongs. The discharged instrument is surrendered to the bank along with a
letter signed by holder/holders. The bank's lien is prominently noted on the face of the instrument
under the signature of an authorized bank official interest rate is l 5% to 17%.

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4.2.2 Cash Credit (Hypothecation):
The mortgage of movable property for securing loan is called hypothecation. Hypothecation is a
legal transaction whereby goods are made available to the lending banker as security for a debt
without transferring either the property in the goods or either possessing. The banker has only
equitable charge on stocks, which practically means nothing. Since the goods always remain in the
physical possession of the borrower, there is much risk to the bank. So, it is granted to parties of
undoubted means with highest integrity. Interest rate is 15% to 17%.
4.2.3 Consumer Credit Scheme:
This scheme is aimed to attract consumers from the middle and upper middle class population with
limited income. The borrower should have saving or current deposit account with the bank.
Minimum 25% of the purchase cost of the product is to be deposited be the borrower with the bank
is equity before the disbursement of the loan. The rest 75% is to be kept as cash collateral (FDR,
ShanchayPatra etc. with the bank. Loan amount is disbursed through a/c payee pay order/demand
draft directly to the seller after submission of the indent, deposit of client equity and completion of
documentation formalities. Interest rate is 15.50%.
4.2.4 Loan (general):
JBL considers the loans, which are sanctioned for more than one year as loan. Under this facility,
an enterprise is financed from the stating to its finishing, ie. from installment to its production JBL
offers this facility only to big industries. Interest rate is 14%.
4.2.5 Working Credit:
Loans allowed to the manufacturing unit to meet their working capital requirement, irrespective of
their size small, medium or large fall under the category
4.2.6 Staff Loan:
Bank official from senior officer and above is eligible for this loan. The maximum amount disbursed
is Tk. 50,000/- for a period of 2 years.
4.2.7 House Building Loan:
This loan is provided against 100% cash collateral, besides, the land & building are also mortgaged
with the bank. Interest rate is 17%.
4.2.8 Small Loan Scheme:
Janata Bank Limited introduced three new small loan scheme are:
 House Repairing/Renovation Loan Scheme:
This loan is offered for renovation and modernization of the house/building/flat which are acquired
by inheritably or purchasing and other ways to make the properties liable and durable. Interest rate
is 15.50%.

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  Personal Loan for Salaried Person:
This loan is provided to fixed salaried persons in various organizations to meet any emergency cash
needs at various events- treatment/operations of critical disease, matrimonial, maternity expenditure
etc. Interest rate is 1 1% and maximum credit ceiling is Tk 1, 00,000.
 Small Business Loan Scheme:
This loan is offered to the small and promising entrepreneurs to meet their capital requirement and
enable them to operate and expand the business purposely. Maximum credit ceiling is Taka 5.00
lac with interest rate is 10%.
4.2.9 Loan against Trust Receipt (LTR):
Investment allowed for retirement of shipping documents and release of goods imported through
L/C fall under this heard. The goods are handed over to the importer under trust with the
arrangement that sale proceeds should be deposited to liquidate the investments within a given
period. This is also a temporary investment connected with import and knows as post-import
finance and falls under the category "Commercial Lending" Interest rate is 16%.
4.2.10 Payment Again Documents (PAD):
This facility originates payment of Import bills on lodgment of CLEAN shipping documents
received from FOREIGN Correspondent against Letter of Credit opened on behalf of the customers.
This is an obligation which the bank shall extend strictly on the merit of shipping document and
which must conform to the terms & conditions of LC.
4.2.11 Loan documentary Bill Purchase (LDBP):
Payment made against documents representing sell of goods to local export oriented industries,
which are deemed as exports, and which are deemed as exports, and which are dominated in local
currency/foreign currency falls under this head. The bill of exchange is held as the primary security.
The client submits the stance bill and the bank discounts it. This temporarily liability is adjustable
from the proceeds off the bill.
4.2.12 Loan against Other Securities (LAOS):
Loan against other securities is a 100% secured advance, which requires no sanction from the Head
Officer. It is sanctioned by marketing lien of FDR, ICB Unit Certificate. Interest rate is 15.50%.
4.2.13 Foreign Bill Purchase (FBP):
Payment made to customer through Purchase of Foreign Currency Cheques/Drafts fall under this
head. This temporary investment is adjustable from the proceeds of the Cheques/Draft. Foreign
Exchange Department deals with Letter of credit (L/C) operation and foreign remittance. L/C
operation divided into import operation, export operation and inland trade

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4.3 OVERALL PROCEDURE OF SANCTIONING LOAN
The following procedure is applicable for giving loan to the customer. These are:

First Application Collecting Making Project

Information For Loan CIB Report Loan Appraisal
Sheet from BB Proposal

Limitation Charges on Documenta Sanction Head Office

of Loan Securities tion Letter
Approval
section

Figure 4.1: Overall Procedure of Sanctioning Loan

1. First Information Sheet:

First information sheet is the prescribed form provides by the respective branch that contains
Janata Bank Limited information of the borrower. It contains following particulars: -
 Name of the concern with its factory location,
 Officer address and Telephone number,
 Name of the main sponsors with their educational qualification,
 Business experience of the sponsors, Details of past and present business, it achievement
and failures,
 Name of all the concerns wherein the sponsors have involvement,
 Income tax registration number with the amount of tax paid for the last 3 years,
 Details of unencumbered assets personally owned by the sponsors,
 Details of liabilities with other Banks and financial institutions including securities held
there against.
 Estimated cost of the project & means of finance.
2. Application for Loan:
After receiving the first information sheet from the borrower Bank official verifies all the formation
carefully. He also checks the account maintains by the borrower with the Bank. If the official
becomes satisfied then he gives application or Investment form to the prospective borrower.
3. Collecting CIB Report from Bangladesh Bank:
After receiving the application for advance, Janata Bank Limited sends a letter to Bangladesh Bank
for obtaining a report from there. This report is called CIB (Credit Information Bureau) report.
Janata Bank Limited generally seeks this report from the head office for all kinds of investment.

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The purpose of this report is to being informed that whether the borrower has taken loan from any
other Bank, if 'yes" then whether the party has any overdue amount or not.
4. Making Loan Proposal:
After receiving CIB report, concern branch prepare an Investment proposal, which containsterms,
and conditions of loan for approval of Head Office or Head of the concerned branch. Following
documents are necessary for sending the loan proposal
 Loan application
 Declaration of the borrower
 Photograph of the borrower duly attested
 Bio data of the borrower
 Limit sanction
 Credit report
 Legal opinion
 Memorandum of article
 Trade license
 Copy of title deeds
 Tax clearance certificate
If the officer thinks that the project is feasible then he will prepare a proposal. JBL prepares the
proposal in a specific form called loan proposal. It contains following relevant information:
 Borrower,
 Date of establishment, constitution,
 Main sponsor/director with background,
 Capital structure, address,
 Account opening date, introduced by type of business, particulars of previous sanctions,
 Security (existing and proposed),
 Movement of accounts,
 Components on the conduct of the account,
 Details of deposit, liabilities of allied concerns, liabilities with other Banks,
 CIB report,
 Rated capacity of the project (item wise),
 Production/purchase during the period,
 Sales during the period,
 Earning received for the period

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5. Project Appraisal:
It is the pre-investment analysis done by the officer before approval of the project. Project appraisal
in the Banking sector is needed for the following reasons:
 justify the soundness of an investment,
 To ensure repayment of Bank finance,
 To achieve organizational goals,
 To recommend if the project is not designed properly
Techniques of Project Appraisal:
An appraisal is a systematic exercise to establish that the proposed project is a viable proposition.
Apprai sing officer checks the various details submitted by the promoter in first information sheet,
application for Investment and loan proposal
Janata Bank Ltd. considers the following aspects in appraising a proposal.
 Technical viability
 Commercial viability
 Financial viability
 Economic viability
The Head Office (HO) mainly checks the technical, commercial and financial viability of the
project. For others HO is dependent on branch's information. But when the loan size is big, then the
HO verifies the authenticity of information physically.
6. Head Office Approval:
Upon receipt of the loan proposal from the branch, the Head Office aging appraises the project. If
it seems to be a viable one, the HO sends it to the Board of Directors for the approval of the loan.
The Board of Directors (BOD) considers the proposal and takes decision whether to approve the
loan or not. If the BOD approves the loan, the HO sends the approval to the concerned branch.
The respective officer of Head Office appraises the project by preparing a summary named "Top
Sheet” or "Executive Summary" Then he sends it to the Head Office Credit Division for the
approval of the Loan. The Head Office Credit Division considers the proposal and takes decision
whether to approve the loan or not. If the committe approves the loan, the HO sends the approval
to the concerned branch with some conditions. These are like:
 Drawing will not exceed the amount of bill receivables.
 All other terms and conditions, as per policy and practice of the Bank for such advance to
safeguard the Banker's interest shall also be applicable for this sanction also.
 Bank may change/alter/cancel any clause (s) of the sanction without assigning any reason
whatsoever and that shall be binding upon the client unconditionally
 Branch shall not exceed the sanctioned limit.

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7. Sanction Letter
After getting the approval of the HO the branch issues sanction letter to the borrower. A sanction
letter contains the following particulars amongst other details:
 Name of borrower
 Facility allowed
 Purpose
 Rate of interest
 Period of the Investment and mode of adjustment
 Security
 Others terms and condition

8. Documentation:
If the borrower accepts the sanction letter, the Documentation starts. Documentation is a written
statement of fact evidencing certain transactions covering the legal aspects duly signed by the
By authorized persons having the legal status. Following are the most common documents used by
the JBL for sanctioning different kinds of Investment:
 Joint Promissory Note
 Letter of Arrangement
 Letter of Disbursement
 Letter of Installment
 Letter of Continuity
 Trust Receipt
 Counter Guarantee
 Stock Report
 Letter of Lien
 Status Report
 Letter of Hypothecation
 Letter of Guarantee
 Documents Relating to Mortgage

9. Charges on Securities:
There are 6 types of moods of charging on securities:
 Pledge: Pledge is the bailment of goods as security for payment of a debt or performance
of a promise. A pledge may be in respect of goods including stocks and share as well as
documents of title to goods such as railway receipts, bills of landing, dock warrants etc.
duly endorsed in Bank's favor.

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 Hypothecation: In case of hypothecation the possession and the ownership of the goods
both rest the borrower. The borrower to the Banker creates an equitable charge on the
security. The borrower does this by executing a document known as Agreement of
Hypothecation in favor of the lending Bank
 Mortgage: According to section (58) of the Transfer of Property Act, 1882 the transfer of
an interest in specific immovable property for the purpose of securing the payment of
money advanced or to be advanced by way of loan, existing or future debt or the
performance of an engagement which may give rise to a pecuniary liability. In this case the
mortgagor dose not transfer the ownership of the specific immovable property to the
mortgagee only transfers some of his rights as an owner.
 Lien: Lien is the right of the Banker to retain goods of the borrower untl the loan is repaid.
The Banker's lien is general lien. A Banker can retain all securities in his possession till all
claims against the concern person are satisfied.
 Assignment: Assignment means transfer of any existing or future right, property or debt by
one person to another person. The person who assigns the property is called assignor and
the person whom it is transferred is called assignee. Usually assignments are made of
actionable claims such as book debts, insurance claims etc. In banking business, a borrower
may assign to the Banker (1) the book debts (2) money due from government’s debt (3)
insurance policy.
 Set-Off: Set-off means the total or partial merging of a claim of one person against another
in a counter claim by the latter against the former. Set-off arises when a debtor or his
creditor wishes to arrive at the net figure owing between them when separate accounts or
debt are involved.

Pledge Movable property (Goods/Stocks/Shares/Debentures etc.)

Hypothecation Hypothecation Movable property (Raw materials of factories/stocks in a
store room showroom /motor vehicles etc.)
Mortgage Immovable property (Land/Building/Factory)
Lien FDR/DPS/Sanchaypatra/ICB Unit Cert/Wage Earners Bond etc
Assignment Insurance Policy/Money due from govt. Dept/Work order etc.
Set-Off *********
Table 4.1: Charges on Securities

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10. Limitation of loan section:

There are some limitations in the advance section of this bank. Among them the major limitations
are-
 Lack of good party
 Party characteristics are not good all time.
 Sometime pressure from top level though the party condition is not good.
 Here there is lack of enough loan schemes that are effective now days.
 Many old payment of loan is due, that creates pressure now
 Lack of information about old loan that creates problems to continue the case of default
loan
 Lack of proper documentation about loan.
 Loan Interest rate is very competitive.

4.4 ASSESSING BORROWER CREDITWORTHINESS

When you apply for a loan, the lender will evaluate your request in order to determine whether or
not it is a good decision to lend you and your business money. A common evaluation framework is
the Five C's of Credit: character, capacity, capital, collateral, and conditions.
 Character is the obligation that a borrower feels to repay the loan. Since there is not an
accurate way to judge character, the lender will decide subjectively whether or not you are
sufficiently trustworthy to repay the loan. The lender will investigate your payment history,
review a credit bureau report, and consider your educational background and experience in
business. The quality of your references and the background and experience of your
employees will also be considered.
 Capacity refers to your ability to meet the loan payments. The prospective lender will want
to know exactly how you intend to repay the loan. The lender will consider the cash flow
from the business, the timing of repayment, and the probability of successful repayment of
the loan. Lenders will also consider payment history as an indicator of future payment
potential. For example, if you have a history of not paying back loans then it becomes more
difficult to obtain additional loans.

Capital is the money invested in the business and is an indicator of how much is at risk should the
business fail. Lenders will generally consider the company's debt-to-equity ratio to understand how
much money the lender is being asked to lend (debt) in relation to how much the owners have
invested (equity). A high debt-to-equity ratio also indicates that the company already has a high
level of loans and could be a higher financial risk.

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Collateral is a form of security for the lender. Banks usually require collateral as a type of insurance
in case you cannot repay the loan. If you default on the loan, then the lender takes possession of the
collateral in place of the debt. The loan agreement should carefully specify all items serving as
collateral. Equipment, buildings, accounts receivable, and inventory are all potential forms of
collateral. A lender will normally want the term of the loan to match the useful life of the asset used
as collateral. For example, if equipment with a five-year expected life span is used as collateral,
then the term of the loan will generally be five years or less. In some cases, the lender may ask for
a third-party guarantee where someone else signs a document promising to repay the loan if you
cannot
Conditions refer to the intended purpose of the loan, for example working capital, additional
equipment, or new offices. The size of loan in relation to the specific use will help the lender
evaluate your loan request. Conditions also include the national, industry level, and local economic
situation. A volatile or unstable economic situation negatively impact the evaluation. However,
positive expectations can increase likelihood of obtaining the loan.

4.5 LENDING PRINCIPLES

Safety: Janata Bank Ltd exercises the lending function only when it is safe and the risk factor is
adequately mitigated and covered. Safety depends upon:
 The security offered by the borrower
 The repaying capacity and willingness of the borrower is to repay the advance

Liquidity: The liability of a Bank is repayable of demand or at a short notice, So the Bank has to
maintain its liquidity at a sutticient level. Investment on building, plant, machinery, land etc. be
recovered quickly, so it is less liquid.
Profitability: Profit is needed to pay interest to depositors, depreciation, and maintenance, declare
dividend to shareholders, provide or reserve against bad and doubtful debts etc. so like other Banks
Janata Bank Limited also disburse advances to earn profit.
Security: To ensure safety of advances, Banks takes different types of securities like MTDR,
Sanchaypatra, land, work order etc. Banker should ensure that the securities are adequate,
marketable and free from encumbrances.
4.6 CREDIT ADMINISTRATION
Financial institutions must ensure that their credit portfolio is properly administered, that is, loan
agreements are duly prepared, renewal notices are sent systematically and credit files are regularly
updated. An institution may allocate its credit administration function to a separate department or
to designated individuals in credit operations, depending on the size and complexity of its credit
portfolio (Credit Risk Management: Industry Best Practices 2005,Bangladesh Bank).
A financial institution's credit administration function should, as a minimum, ensure that:

Page | 28
  Credit files are neatly organized, cross-indexed, and their removal from the premises is not
permitted.
 The borrower has registered the required insurance policy in favor of the bank and is
regularly paying the premiums.
 Credit facilities are disbursed only a been met and all the required documents have been
received.
 Collateral value is regularly monitored.
 The borrower is making timely repayments on interest, principal and any agreed to fees and
commissions.
 The established policies and procedures as well as relevant laws and regulations are
complied.
4.7 RECOVERY OF ADVANCE OF JANATA BANK LIMITED
Recovery plan is one of the components of performance plan. It is a future intended action in respect
of recovery. In other words, it is a conscious and deliberate effort to recover all current dues and
overdue loans.
Days Past Due Collection Action
1-14 Soft call requesting payment.
15-29 1st reminder letter
30-44 2nd reminder letter +Single visit
45-59  3rd reminder letter
 Group visit by team member
 Follow up over phone
 Letters to Guarantor, Employer, and Reference all above effect
follows.
 Warning on legal action by next 15 days
60-89  Call up loan.
 Final reminder&Serve legal notice.
 Legal proceedings begin
 Repossession starts
90 and above  Telephone calls/Legal proceedings continue
 Collection effort continues by officer & agent
 Letter to different banks /Association

Table 4.2: Steps of Action against a Defaulter

Page | 29
 CHAPTER – 5
ANALYSIS OF CREDIT PERFORMANCE

Page | 30
5.1 YEAR OF WISE DEPOSIT OF JANATA BANK & GROWTH RATE
Table 5.1: Year Wise Deposit of JBL & Growth Rate

YEAR 2013 2014 2015 2016 2017

JBL 478,535.57 516,010.74 568,911.14 641,819.15 649,527.45
Deposit(Tk.
In Million)
Growth Rate 19.78% 7.83% 10.25% 12.82% 1.2%
Source: Janata Bank Ltd. and Bangladesh Bank Annual Report 2013-2017

YEAR WISE DEPOSIT OF JANATA BANK

700000 641819.15 649527.45
568911.14
600000 516010.74
478535.57
500000
400000
300000
200000
100000
0
2013 2014 2015 2016 2017

Figure 5.1.1: Year Wise Deposit of Janata Bank

GROWTH RATE OF DEPOSIT

25.00%
19.78%
20.00%

15.00% 12.82%
10.25%
10.00% 7.83%

5.00%
1.20%

0.00%
2013 2014 2015 2016 2017

Figure 5.1.2: Growth Rate of Deposit

Interpretation:

The graph shows the year wise deposit of JBL increased from TK. 478,535.57million in 2013 to
TK. 649,527.45 in 2017. Growth rate of deposit decreased from 16.78% in 2013 to 1.2% in 2017.

Page | 31
5.2 YEAR WISE CREDIT DISBURSEMENT & GROWTH RATE

Table 5.2: Tear Wise Credit Disbursement

YEAR 2013 2014 2015 2016 2017

Loans and 285,747.65 319,773.25 349,,861.30 403,037.42 459580.05
Advances
Growth -6.42% 11.91% 9.41% 15.20% 14.03%
Rate
Source: Janata Bank Ltd. Annual Report 2013-2017

YEAR WISE DEPOSIT OF JANATA BANK

500000 459580.05
403037.42
400000 349861.3
319773.25
285747.65
300000

200000

100000

0
2013 2014 2015 2016 2017

Figure 5.2.1: Year wise Disbursement Loans & Advances

GROWTH RATE OF LOANS AND ADVANCES

20.00%
15.20%
14.03%
15.00%
11.91%
9.41%
10.00%

5.00%

0.00%
2013 2014 2015 2016 2017
-5.00% -6.42%

-10.00%

Figure 5.2.2: Growth Rate of Loans & Advances

Interpretation:

The graph shows that, year wise credit disbursement increased from TK. 285,747.65 million in
2013 to TK 459580.05 in 2017. Growth rate of loans and advances increased from -6.42% in 2013
to 14.03% in 2017.

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5.3 CREDIT TO DEPOSIT RATIO
Table 5.3: Credit to Deposit Ratio
YEAR 2013 2014 2015 2016 2017
Total Loans & 285,747.65 319,773.25 349,861.30 403,037.42 459,580.05
Advances
Total Deposit 478,535.57 516,010.74 568,911.14 641,819.15 649,527.45
Credit to 59.71% 61.97% 61.50% 62.80% 70.76%
Deposit Ratio
Source: Janata Bank Ltd. Annual Report 2013-2017

CREDIT DEPOSIT RATIO

72.00%
70.76%

70.00%

68.00%

66.00%

64.00%
62.80%
61.97%
61.50%
62.00%

59.71%
60.00%

58.00%

56.00%

54.00%
2013 2014 2015 2016 2017

Figure5.3: Credit to Deposit Ratio

Interpretation:

The graph shows that, credit to deposit ratio of Janata Bank Limited was fluctuated over years. It
was increased from 59.71% in 2013 to 62.80% in 2016 and finally it became 70.76%, which
indicates that the bank was efficient enough to make credit through proper use of deposit.

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5.4 UNCLASSIFIED LOANS & ADVANCES
Table 5.4: Unclassified Loans and Advances
YEAR 2013 2014 2015 2016 2017
Unclassified 2,53,980.8 2,82,397.60 3,06,679.60 3,43,677.60 3,83,584.55
Loans &
Advances
Unclassified 88.88% 88.31% 87.66% 85.27% 83.46%
Loans as
percentage of
Total Loan
Source: Janata Bank Ltd. Annual Report 2013-2017

UNCLASSIFIED LOANS AND ADVANCES

500000
383584.55
400000 343677.6
282397 306679.6
300000 253980.8

200000
100000
0
2013 2014 2015 2016 2017

Figure 5.4.1: Unclassified Loans and Advances

UNCLASSIFIED LOANS AND ADVANCES

90.00% 88.88%
88.31%
87.66%
88.00%
85.27%
86.00%
83.46%
84.00%

82.00%

80.00%
2013 2014 2015 2016 2017

Figure 5.4.2: Unclassified Loans as percentage of Total Loans and Advances

Interpretation:

The graph shows that the unclassified loans and advances of Janata Bank Ltd. decreased from Tk.
2,53,980.8 million in 2013 to Tk 75,995.5 million in 2017. Unclassified Loans as percentage of
Total Loans and Advances decreased from 88.88% in 2013 to 83.46% in 2017.

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5.5 CLASSIFIED LOANS & ADVANCES
Table 5.7: Classified Loans and Advances
YEAR 2013 2014 2015 2016 2017
Classified 31,766.86 37,375.67 43,181.70 59,359.80 75,995.50
Loans &
Advances
Unclassified 11.12% 11.69% 12.34% 14.73% 16.54%
Loans as
percentage of
Total Loan
Source: Janata Bank Ltd. Annual Report 2013-2017

CLASSIFIED LOANS AND ADVANCES

75995.5
80000
59359.8
60000
43181.7
37375.67
40000 31766.86

20000

0
2013 2014 2015 2016 2017

Figure 5.5.1: Classified Loans and Advances

CLASSIFIED LOANS AND ADVANCES

18.00% 16.54%
16.00% 14.73%
14.00% 11.69% 12.34%
11.12%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2013 2014 2015 2016 2017

Figure 5.5.2: Classified Loans as percentage of Total Loans and Advances

Interpretation:

The graph shows that, classified loans and advances of Janata Bank Ltd. increasead from Tk
31,737.67 in 2013 to 75,995.50 in 2017. The classified loan ratio increased from 11.12% in 2013
to 16.54% in 2017.

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5.6 SUB-STANDARD, DOUBTFUL, AND BAD OR LOSS AS A PERCENTAGE OF
CLASSIFIED LOANS

Table 5.8: Sub-Standard, Doubtful and bad or Loss as a percentage of classified loans
YEAR 2013 2014 2015 2016 2017
Sub-Standard 22% 14% 14% 25% 35%
Doubtful 14% 11% 11% 9% 36%
Bad & Loss 64% 75% 66% 66% 29%
Source: Janata Bank Ltd Annual Report 2013-2017

Graphical Presentation:

CLASSIFIED LOANS AND ADVANCES

80.00%

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
2013 2014 2015 2016 2017
Sub-Standard 22.00% 14.00% 14.00% 25.00% 35.00%
Doubtful 14% 11% 11% 9% 36%
Bad & Loss 64% 75% 66% 66% 29%

Figure 5.9: Sub-Standard, Doubtful and Bad or Loss as a percentage of classified loans

Interpretation:

The graph shows that, Sub-Standard, Doubtful & Bad/Loss loan as a percentage of classified loan
of Janata Bank Limited was fluctuating over the years. Maximum portion of classified loan was
fallen into Doubtful. In 2017 Sub-Standard loan was 35%, Doubtful loan was 36% and Bad/Loss
was 29%.

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 5.6 PROVISION KEPT AGAINST CLASSIFIED LOANS
Table 5.6: Provision Kept Against Classified Loans
YEAR 2013 2014 2015 2016 2017
Provision for 19,345.33 21,684.23 17,670.8 19,914.24 23,910.51
Classified
Loans
Source: Janata Bank Ltd. Annual Report 2013-2017

PROVISION KEPT AGAINST CLASSIFIED LOANS

30000

23910.51
25000
21684.23
19345.33 19914.24
20000 17670.8

15000

10000

5000

0
2013 2014 2015 2016 2017

Figure 5.6: Provision Kept Against Classified Loans

Interpretation:

The graph shows that, the provision kept against classified loans and advances was fluctuating over
the years. In 2014 the amount increased to Tk. 21,684.23 million from the previous year which was
Tk. 19,345.33 million. However it decreased to Tk. 17,670.80 million in 2015 and again decreased
over the next years to Tk. 23,910.50 million in 2017.

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 CHAPTER – 6
FINDINGS, RECOMMENDATIONS &
CONCLUSION

Page | 38
6.1 MAJOR FINDINGS:

The study, "Credit Management of Janata Bank Limited" reveals the following major findings:
 Deposit of JBL has increased over the years from Tk 478,535.57 million in 2013 to Tk
649,527.45 million in 2017 but the growth rate was fluctuating over the year.

 Credit disbursement of Janata Bank Limited increased over the year, it has been increased
from -6.42% in 2013 to 14.03% in 2017.

 Janata Bank Limited provided the highest portion of the loans in Industrial sector and
lowest portion of the loans in Transport sectors.

 Classified loans and advances of Janata Bank Limited increased over the year of analysis
and Maximum portion of classified loan was fall into Doubtful.

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6.2 RECOMMENDATIONS:

The analysis of "Credit Management of Janata Bank Limited" requires the following
recommendation that may help the JBL to improve Loan Disbursement and Recovery Performace.

 The deposit mobilization of JBL was increased over the years. Bank should give more effort
to maintain and improve its deposit mobilization rate by developing new savings
instruments as deposit is the main source of Bank fund.

 Janata Bank Limited should try to increase the growth rate of loans & advances by
providing loans in attractive terms & conditions in diversified sectors.

 The bank should monitor the borrower properly to ensure the proper use loan for specified
purpose to reduce the amount of classified loan.

 In order to minimize the amount of NPL the bank should provide loans to creditworthy
borrowers. Bank should develop effective monitoring and recovery system to reduce the
classified loan.

Page | 40
6.3 CONCLUSION:
Janata Bank Limited continues to play its' lending role in socio-economic development of the
country as a companion of independent Bangladesh.Since the inception of Janata Bank Limited, it
has been rendering its' banking services to meet the needs of the state and the nation and to cope up
with the demands of mass people of the country giving priority to service. The success of a bank
depends largely on the eficient credit management. A successful credit management is not only
need for a bank's own performance but also it is needed for the smooth development of an economy.
In any strategy of economic development, it is essential to emphasize the evaluation of a sound and
well integrated credit management system from the view point of both resource mobilization and
efficient allocation of funds. Credit disbursement of Janata Bank Limited was increased over the
year, however growth rate of credit was fluctuated and decreased over the year. By developing new
and convenient credit schemes and investing in diversified sector it can improve its growth rate.
Janata Bank Ltd. concentrates more on Dhaka division to provide loans and advances and lowest
portion to Barisal division. Janata Bank Limited provided the highest portion of the loans in
Industrial and and lowest portion of the loans in Tea loan purposes for over the year of analysis. It
should concentrate on providing more credit in Tea Loan and small loan sector for developing our
country. Classified loan ratio of Janata Bank Limited was in increasing trend for over the year of
analysis. The bank should try to provide loans to creditworthy borrowers by following the proper
investment principles. Credit to deposit ratio of Janata Bank Limited was fluctuated and decreased
over the years. By following all the above suggestion the bank hopes to achieve a satisfactory level
of progress in all areas of its operations including target of profitability.

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 References:

 Bangladesh Bank, 2017, Annual Report, 2016-2017, Dhaka, Bangladesh.

 C. R. Kothari, 2004, Research Methodology, New Age International Publishers, New

Delhi, India.

 Janata Bank Limited, 2013-2017, Annual Report 2012-2013, Dhaka Bangladesh.

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