Prospects and challenges of SME credit scheme of Jamuna Bank Limited

Abstract

Bangladesh is a developing country. And its economy is expanding. For that reason banking sector is also grow up very rapidly. The Banking Industry in Bangladesh is more than 100 years old. The first commercial Bank was ANZ Grind lays Bank, which opened in 1905.Today necessity of Bank as a financial institution is undeniable. Conventional Banks operates their businesses on interest basis. But interest is not allowed in our religion Islam. Keeping this problem in mind Organization of Islamic Conference (OIC) has introduced the concept of interest free Banking. This interest free Banking system will be operated on the basis of profit-loss sharing system. Jamuna Bank Limited is one of these kinds in our country. Jamuna Bank Limited (JBL) is a solid, forward-looking, modern local Bank with a record of sound performance. The effort that JBL makes in order to portray the bank as a Brand image is very strong and successful. The general image of Jamuna Bank is “Trustworthy, Efficient, Helpful and Committed”. “Prospects and Challenges of SME Credit Scheme of JBL, Mirpur Branch”, is my assign project. I have worked in the Credit division, Remittance, Advance, Foreign exchange side by side I learn other Banking operation. This report covers three parts. First two parts cover the organization part and the job part. The third and the last part covers the overall project and covers the overview of Foreign Exchange Division, letter of credit in import and export, types of letter of credit and stages of letter of credit of JBL, the main topic of SME Credit Scheme of JBL and finally SWOT analysis & Recommendation and Conclusion. For a bank, good loans or credit or advances are most profitable assets. The largest portion of operating income is derived from lending. A commercial bank usually wins over its competitors only on the quality and quantity of lending. It is therefore, indispensable for a bank to have a well thought policy for executing its lending operation. This report represents JBL SME Credit Scheme. Already it has earned a strong positioned in the field of SME Credit Scheme. To hold the position and be perfect in this sector, they will have to keep more and more attention to the customer retention and development of this sector.