Internship Report

on
Credit Management System of National Credit and
Commerce Bank Limited

Md. Abdur Razzak

BBA Program, 2018 (5th Batch)
ID No: BBA 15025
Stream: Management Studies

Supervisor
Subrata Banik
Assistant Professor

Department of Business Administration

Faculty of Business Studies
Mawlana Bhashani Science and Technology University

February, 2020

i
 Internship Report
on
Credit Management System of National Credit and
Commerce Bank Limited

By
Md. Abdur Razzak
ID: BBA 15025

supervisor
Subrata Banik
Assistant Professor

BBA Program
Department of Business Administration
Faculty of Business Studies
Mawlana Bhashani Science and Technology University

February, 2020

ii
 Letter of Transmittal

February 29, 2020

Subrata Banik
Assistant Professor
Department of Business Administration
Faculty of Business Studies
Mawlana Bhashani Science and Technology University

Subject: Submission of Internship Report on “Credit Management System of National

Credit and Commerce Bank Ltd.”

Honorable Sir,
With due respect, I have the honor to place my Internship Report on “Credit Management
System of National Credit and Commerce Bank Ltd.” for the partial fulfillment of the
requirements of completion of my BBA program. This report is prepared under your
supervision and guidance. With a view to having pragmatic exposure over practical arena,
I was assigned this topic.
To get through this report based on my cognition and analysis I exerted my full efforts and
zeal. I have tried to make the report clear and comprehensive within the constraints. I
sincerely believe that this report will fulfill the purpose.
Thanking you for your kind supervision.

Sincerely Yours,

………………….
Md. Abdur Razzak
ID: BBA 15025
BBA (5th Batch)
Session: 2014-2015
Stream: Management Studies
Department of Business Administration
Faculty of Business Studies
Mawlana Bhashani Science and Technology University
iii
 Declaration

I do hereby solemnly declare that the work presented in this internship Report titled “Credit
Management System of National Credit and Commerce Bank Ltd.” is an original work
done by me under the Supervision of Mr. Subrata Banik Sir, Assistant Professor,
Department of Business Administration, Mawlana Bhashani Science and Technology
University, Santosh, Tangail-1902. No part of this report has been previously submitted to
any other University / College / Institution / Organization for any academic
certificate/Degree/Diploma/ Qualification.

The work I have presented does not breach any existing copyright and no portion of this
report is copied from any work earlier for a degree or otherwise.

I further undertake to indemnify the department against any loss or damage arising from
breach of the forgoing obligation, if any.

…………………………..
Md. Abdur Razzak
ID: BBA 15025
BBA 5th Batch
Session: 2014-2015
Stream: Management Studies
Department of Business Administration
Faculty of Business Studies
Mawlana Bhashani Science and Technology University

iv
 Acknowledgement

First of all, I would like to express gratitude to Almighty Allah for giving me the strength
and the ability to finish the task within the given time. I also grateful to all the people who
were involved both directly and indirectly in the preparation of this report.

At the very beginning, I want to thanks my honorable supervisor Mr. Subrata Banik Sir,
Assistant Professor, Department of Business Administration for his stimulating advice,
guidance, valuable suggestions and whole hearted cooperation. His supervision helps me to
complete this report successfully. I am also very grateful to all my teachers for their valuable
suggestions, advice and support and help.

I would like to thanks the authority of National Credit and Commerce Bank Limited for
giving me an internship opportunity specially Mr. Md. Hasanur Rahman sir (AVP) and Mr.
Ranjit Kumer Paul sir (DM) and all the employees of National Credit and Commerce Bank
Limited, Tangail Branch for their cooperation towards me and for giving me permission to
collect data from different department and providing me the required data as much as
possible.

Furthermore, I would convey special thanks to my honorable parents whose inspirations

have enabled me to complete this report of this particular course. I also apologize heartily
for any omitted name whose contribution was also complementary for any possible aspects.
Therefore, all the credit of my accomplishment spread to all the helping hands.

……………………….
Md. Abdur Razzak
ID: BBA-15025
Batch: BBA 5th
Session: 2014-2015
Stream: Management Studies
Department of Business Administration
Faculty of Business Studies
Mawlana Bhashani Science and Technology University

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 Table of Contents

Particulars Page No
Executive Summary xi
Chapter 01 : Introduction 2
1.1 Origin of the Report 2
1.2 Objectives of the Report 3
1.3 Scope of the study 3
1.4 Limitations of the Report 3

Chapter 02 : Methodology 4
2.1 Sources of Data 5
Chapter 03 : Organization Profile 6
3.1 Organizational overview 7
3.2 Vision and Mission 8
3.3 Core Value 8
3.4 Corporate Value 8-9
3.5 Slogan 9
3.6 Motto 9
3.7 Organizational Hierarchy of NCC Bank Ltd. 10
3.8 Organizational Hierarchy of Tangail Branch 11
3.9 Loan products of NCC Bank limited 11-12
3.10 Deposit products of NCC bank limited 12-13
3.11 Cards of NCC bank limited 13-14
3.12 Remittance products of NCC bank limited 14
3.13 Analysis of performance indicators of NCC Bank Limited 14-16
Chapter 04: Credit Management system 17
4.1 Credit 18
4.2 Credit Management 18
4.3 Types of Credit 18-19
4.4 Types of advance 19-20
4.5 Sources of credit 20
4.6 Credit policy 20
4.7 Credit procedure of NCC Bank Limited 21-23
4.7.1 First Step: Credit Application 21
4.7.2 Second Step: Preparation for credit proposal 22
4.7.3 Third Step: Collection of Information 22
4.7.4 Fourth Step: Documentation 22
4.7.5 Fifth Step: Withdrawal of Amount 22
4.7.6 Sixth Step: Credit Disbursement 23

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4.7.7 Seventh Step: Monitoring and Recovery of Loan 23
4.8 Credit Procedure of NCC Bank, Tangail Branch 23

4.9 Sound principle of lending 23-24

4.10 Loan and Advances of NCCBL (2015 – 2018) 24
4.11 Sector wise loan and advances 25
4.12 Sector Wise Loan and Advances of Tangail Branch 25
Chapter 05: Credit Risk Management 26
5.1 Credit Risk 27
5.2 Credit Risk Management 27
5.3 Types of Risk 27-28
5.4 Creditworthiness of a borrower 28
5.5 Credit Default 28
5.6 Reasons for credit default 29-30
5.7 Credit Risk Management Policy of NCC Bank Ltd 30-31
5.7.1 Credit Risk Identification 30
5.7.2 Credit Approval 30
5.7.3 Credit Monitoring 30-31
5.7.4 Concentration Risk 31
5.7.5 Credit Risk Mitigation 31
5.8 Credit Risk Management Procedure at Tangail Branch 31
Chapter 06: Credit Recovery 32
6.1 Classified loan 33
6.2 Unclassified loan 33
6.3 Substandard loan 33
6.4 Doubtful 33
6.5 Bad Loan 33-34
6.6 Classified and Unclassified Loans of Tangail Branch 34
6.7 Non-performing loan and advances of NCC Bank Limited 34-35
6.8 Non-performing Loan and Advances of Tangail Branch 35
6.9 Recovery of Credit 35
6.10 Credit Recovery Procedure 35-37
6.11 Credit Recovery Procedure at Tangail Branch 37
Chapter 07: Findings 38-39
Chapter 08: Conclusion 40-41
Appendix 42-44
Bibliography 45-46

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 List of Tables

Table Particulars Page

No No
01 Organizational Hierarchy of NCC Bank Ltd. 10

02 Organizational Hierarchy of Tangail Branch 11

03 Performance Indicators of NCC Bank Limited From 2015 to 2018 15-16

04 Term Loan 18

05 Four Years Loan and Advances of NCC Bank Ltd. 24

06 Sector Wise Loan and Advances of NCC Bank Ltd 25

07 Sector Wise Loan and Advances of Tangail Branch 25

08 Classified and Unclassified Loan of Tnagail Branch 34

09 Non-performing Loan and Advances of NCC Bank Ltd. 34

10 Non-performing Loan and Advances of Tangail Branch 35

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 List of Figures

Fig. No Particulars Page No

01 Credit Procedure 21

02 Credit Recovery Procedure 36

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 List of Abbreviations

NCC National Credit and Commerce

NCCBL National Credit and Commerce Bank Limited

Agri Agriculture

RFCD Resident Foreign Currency Deposit

NFCD Resident Foreign Currency Deposit

LTR Loan against Trust Receipt

PAD Payment Against Document

LC Letter of Credit

CC Cash Credit

SOD Secured Over Draft

LIM Loan Against Imported Merchandise

CIB Credit Information Bureau

CRG Credit Risk Grading

CD Credit Deposit

NPL Non Performing Loan

CRM Credit Risk Monitoring

ADR Alternative Dispute Resolution

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 Executive Summary

In the private banking sector, National Credit and Commerce Bank LTD. is one of the best
growing and leading bank in Bangladesh. They have a wide experience in domestic banking
industry. It plays a prominent role in the development of business and commerce as well as
economy of Bangladesh. In the last year the bank achieved 1,127.88 million Tk. as profit.
My objective is to know and gather knowledge about the credit management activities of
NCC bank ltd. Primary and secondary data have been collected through observation and
consultation with the bank’s customer and bank’s personnel, annual report of the bank,
manual of the bank, newspaper and journals to complete this report.
NCC bank ltd. came into existence as an investment bank in the name and style of National
Credit Limited (NCL) and thereafter with the permission of central bank it was converted
into private commercial bank with the name of NCC Bank Ltd. It operates with 116 branch
and 2145 employees till 2018. Its operations performed under three major heads - General
Banking, Loan and Advance, and Foreign Remittance. Loan and Advances are the major
source of bank’s income. This department plays a vital role in augmenting the bank’s growth
and earnings. Its various deposit and credit products have also attracted the clients-both
corporate and individuals. The bank has already occupied a challenging position among its
competitors after achieving success in all areas of banking operation.
All the appearance of Credit Management System of NCC bank ltd. like; Credit
management, types of credit, types of loan, credit procedure, credit risk management, reason
of credit default, credit risk management policy, non-performing loan, and recovery
procedure etc. have been represent in this report.
NCC Bank Ltd. aspires to provide customers with complete banking solutions by providing
the good banking facility and their services also good.
After making the whole report, I had prepared some findings concerning about the Credit
Management System of National Credit and Commerce Bank Ltd. As an inexperienced
person I may have created numerous mistakes in those findings, but however I felt from my
point of view, I only clear out those.
NCC Bank Ltd. maintains all rules and regulation imposed by Bangladesh Bank on their
Credit Management activities.

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