Comparative study of various deposit & loan schemes at Premier Bank

Abstract

This report is on Comparative Study of Various Deposit & Loan Schemes in the Premier Bank Limited. The Premier Bank Limited started its operation from October, 1999 under the Banking Companies Act 1991.The Bank is a full-fledge Commercial Bank and with strong capital base, with no insider lending and low non- performing loans. The objective of the bank is to become a highly professional and profitable bank to contribute to the economic development of the country. The Bank aims to continue expanding Branch network to reach wide spectrum of customers across the country and serve by offering products and services backed by latest technologies. Premier bank offers different types of credit in the form of loan. Premier Bank follows the following principles in its lending operation: judicious selection of customers, purpose, safety, security, liquidity, adequate return (profitability), supervision, national/social interest, Credit Control Policy of Bangladesh Bank. The lending procedure at Premier Bank starts with building up of relationship with customer through account opening. A loan procedure formally starts when the branch receives application from client for a loan facility. After receiving the loan application from the client, the bank follows the lending procedure of Bangladesh Bank guideline & their own credit policy. The Premier Bank Limited uses a multiple of methods or techniques to assess the prospective borrower as well as the project in question. These techniques include analysis of CIB Report, appraisal of Project Feasibility, Credit Risk Grading (CRG). While selecting borrowers/entrepreneurs in general, Premier Bank places particular emphasis on the character and capacity of the entrepreneurs/sponsors. Branches play key roles in credit operation. The approval of a credit depends on how well the credit proposal is prepared and supported by relevant information and analysis. The Credit Risk Grading (CRG) provides a systematic procedure for analyzing and quantifying the potential risk. Therefore Premier Bank should set up a separate loan monitoring cell which will be responsible for monitoring its total loan portfolio with special care to the classified loan.