Submitted To
Md.Jakir Hossain
Lecturer of Finance
BUBT
Submitted By
Ali Imam (ID - 122)
Syed Azim al khair Kowshik (ID-124)
Shujauddin (ID 139)
Syeda Chowdhury Daina (ID- 142)
Khairul Alam (157)
Kamrul Islam (Intake - 18) (ID - 255)
Presentation Topic
Money laundering, the
cause & consequence.
The case of Bangladesh.
General procedure of sanctioning
loan
The following procedure is applicable for giving advance to
the customer. These are:
A.
B.
C.
D.
E.
F.
G.
H.
I.
Party’s application
Filling form-A
Collecting CIB report from Bangladesh Bank
Processing loan proposal
Project appraisal
Head office approval
Sanction letter
Documentation
Disbursement
Lending and investment
Products
A Bank invests its funds in many ways to earn
income. The bulk of its income is derived
from loan. In 2011, total advance stood at Tk.
72733.54 million against Tk63230.14 million
in 2010. It is a good indication that interest
income getting greater and greater every year
from this source. Distribution of loan for last
four years is given following slide -
year wise laon and advances (tk in million)
72733.54071
63230.14
50387
46332
2008
2009
2010
Figure- Loan & advances (Tk. in millions)
Sources: Annual Report (2008-2011)
2011
Sector wise distribution of loan
National Credit & Commerce Bank Ltd. Distribute the
loan on the basis of their credit policy. NCC Bank
provides loan to the following area:
Agriculture & agro based ventures
Trade & commerce
Consumer financing
Real estate & civil construction
Industry
Business
Lease financing
Housing Loan scheme
Sector wise distribution of loan (2011) has been illustrated
below:
Sectoral Distribution of Advances
Industry 40.87%
Construction 1.77%
Transport and Communication 0.63%
Business 17.48%
Storage 0.48%
Agriculture 0.83%
Others 37.94%
Figure : Sector wise Loan distribution (in 2011)
Source: Annual Report 2011
Lending Products
NCC Bank is one of the esteemed Banking Institutions in
Bangladesh. It has been serving the people proudly with its
different products since 1993 when it entered into the
Banking Arena first. Different credit products offered by this
Bank are very lucrative to its client. There are two types of
credit products available in the Branch: I) Loans & II) Advance.
Loans are of two types, I) Long Term Loans II) Short Term
Loans. Again, there are several types of lending products
offered by NCC Bank to its valued clients just as bellow: Loans
have primarily been divided into four major groups:
1. Continuous loan
2. Term loan
3. Demand loan
4. Loan under SME
•Continuous Loan :
•Secured overdraft against Financial obligation
•Secured overdraft against Work Order/Real Estate
•Cash credit Hypothecation
•Cash credit pledge
Fig: Continuous Loan (in million)
Sources: Annual Report (2008-2011)
Term Loan
•Project Loan
•Transport Loan
•House Building Loan
•Lease Finance
•Loan under Syndication
Fig- Term Loan (in million)
Sources: Annual Report (2008-2011)
Demand Loan
•Loan General
•Demand Loan against Ship-breaking (LAS)
•Payment against Documents (PAD)
•Loan against imported merchandise (LIM)
•Loan against Trust Receipt ( LTR)
•Forced Loan
•Packing Credit
•Secured overdraft against Cash Incentive
•Foreign Documentary Bill Purchased
(FDBP)
Fig: Demand Loan (in million)
Sources: Annual Report (2008-2011)
SME Loan
•Small Business Loan
•Consumer Finance Loan
•Lease Finance
•Personal Loan
•House Repairing & Renovation Loan
•Working Capital Loan
•Festival Business Loan
•Festival Personal Loan
•Car Loan Scheme
Figure- SME loan (Tk. in million)
Sources: Annual Report (2008-2011)
Year wise Lending & Recovery
From the graph we see, the disbursement
of loan gradually increase year by year.
Year
2008
2009
2010
2011
Disbursement
(Million)
Recovery
46332
44430.1
50387
48967.1
63230.14
61804.9
72733.54
70522.43
Year wise advances and Recovery
160000
140000
120000
Axis Title
100000
80000
60000
40000
20000
0
2008
2009
2010
2011
recovery
44430.11
48967.11
61804.86
70522.43
advsnces
46332
50387
63230.14
72733.54071
Figure : Year wise disbursement & Recovery of NCCBL.
Sources: Annual Report (2008-2011)
From the graph we can see that loan and
advance increases gradually year by year.
Recovery amount also increases year by year
in 2011 the total advances was tk 72733.54
and recovery amount was tk 70522.43, which
maximum amount of total advances. From the
graph we found that percentage of recovery is
higher in 2011
Non Performing Loan Analysis
A loan is nonperforming when payments of interest and
principal are past due by 90 days or more, or at least 90 days
of interest payments have been capitalized, refinanced or
delayed by agreement, or payments are less than 90 days
overdue, but there are other good reasons to doubt that
payments will be made in full. (IMF)
Year
Non- Performing
Loan (%)
2008
4.17
2009
4.14
2010
2011
2.84
2.27
Non performing loan
4.5
4
3.5
Figure in percent
3
2.5
2
1.5
1
0.5
0
Series1
2008
4.17
2009
4.14
2010
2.84
Figure : Non Performing Analysis.
Source: Annual Report (2008-2011)
2011
2.27
From the graph we can say, the nonperforming loan of NCC bank is low. The
industry average of non-performing loan in the
year 2011 was 9.25%. But the non-performing
loan of NCC bank is below industry average. It
is positive sign for the bank. Only the nonperforming loan of NCC bank was high in the
year 2008 than any other year.
Major Findings
Loan disbursement is increasing year by year.
Recovery of the Bank is increasing. It was
increased from 95.05% to 97.73%.
Non-performing loan of the Bank is decreasing.
It was decreased from 4.95% to 2.27%.
NCC bank set a target to 95% recovery of
disbursed loan.
NCC Bank is able to recover the loan more than
their target of about 95%.
Recommendations
NCC bank should remove complexity and
reduce time to sanction loan. If they can
remove complexity & reduce time, they will be
able to disburse more loans.
The bank should try to increase its loan
quality by accelerating its recovery policy.
Nonperforming loan should be increased.
To Fulfill a target 95% recovery of disbursed
loan.
Thank You All
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