internship presentation on bank

7/30/2019 Internship Presentation On Bank

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Internship Presentation OnCredit Appraisal System and

Cost of Credit Management inPrime Bank Limited.

Prepared By:

S.M.Abdullah-Al-Mamun.ID# 0211001.

Bachelor of Business Administration.


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Objective of the Study

To gather practical knowledge about modern bankingsystems.

To learn the credit appraisal system of the bank.

To know the determination process of cost of creditmanagement.

Developing a generalize formula to calculate the costof credit management.

To identify the problem and find out the solutions.


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Overview of Prime Bank Ltd.

Prime Bank Limited is one of the leadingprivate commercial bank has started its

journey on 17th

April,1995.

PBL constantly focus on understandingand anticipating customer needs.

The bank has 49 Branches all over thecountry.


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Methodology

To collect the information used both

Primary Sources.

Secondary Sources.


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Credit Appraisal SystemSeveral steps for appraisal any loan and advanceproducts:

Request for credit from the client

Credit application from filled up by the customersand collection of documents

Scrutinizing the documents

Analyzing the information.

Preparing the proposal

Presentation of the proposal


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Cost of credit managementComponents are:

1. Cost of fund.

2. Total working hour cost.

3. Other cost.Formula:

Cost of credit management= COF + CTTM +

COF= Cost of Fund.

CTTM= Cost of Total Time Employed for CreditManagement.

= Other Cost.


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Steps to determine cost of fund

NCD=Interest Expenses

Average Deposit

RRI=NCD

1-RR

NCD= Nominal Cost of Deposit.

RRI= Real Rate of Interest


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Time Budget Analysis

The following departments of bank are considered

to calculate time budget analysis:

1. Credit Department.

2. International Trade Finance.

3. General Banking.

4. Computer Department.

5. Top level Executives.


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Calculation of Total Working Hour

If for every element e the employee P of theCredit department takes T times, thesummation of the times employed for eachelements will be the total time employed byemployee P of the credit department.

The formula will be, Cp= Tpe

e=Element in Loan Processing in the Credit Department.

Tpe= Total Time Given by an Employee for doing each elementin the credit management process.

Cp= Total Time Given by the Employee for performing all theelements in credit management process.


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TWHc= Cp

TWHc= Total time given by all the employee for doing

all the elements in credit management process.Total Time for Credit Management:

TTCM= TWHc+ TWFFEX+ TWHcom+ TWHpoc+ TWHTEHere;

TTCM = Total time for credit Management.TWHc= Total time given by all the employee of the creditdepartment.

TWFFEX= Total working hour employed in the foreign exchangedepartment.

TWHcom= Total time given by all the employee of the computer

department.

TWHpoc = Total time given by the employee responsible forpreparing pay order for the credit department.

TWHTE= Total time given by all top-level executive all the tasks

in the credit management process.


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Cost of Total Time employed for Cost of Credit

ManagementCTTCM= AS*TTCM

AS= Average Salary/hour.

So the cost of credit management will be;

CCM=COF+CTTCM+

Here,CCM= Cost of Credit ManagementCOF= Cost of Fund

CTTCM =Cost of Total time employed for creditmanagement.

= Other cost


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FINDINGS

Approved loan on the basis of documents.

Overlooked of total overhead cost.

Irregularity of submission of differentperformance report.

Prescribed appraisal system is overlooked

several times. Credit officials rarely do site visits.

internship presentation on bank

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