Loan disbursement and recovery system of Janata Bank Limited

Abstract

Janata Bank Limited (JBL) is the second largest commercial bank of Bangladesh for its net asset or value and it has 901 branches. The mission of Janata Bank Limited is that it want to be an effective commercial bank by achieving a stable and constant growth strategy, offering high valued financial products, delivering excellent customer service. The United Bank Limited and Union Bank Limited were nationalized after the liberation war and re-launched as Janata Bank. This report is prepared mainly on the basis of my three and half month practical work at Janata Bank Limited, Faridpur corporate branch. This internship period helps me a lot to know more about the practical scenario and the environment of a financial institution. Loans or credits is comprised as the most important asset and also the primary source of earning for the banking institutions. On the other hand, loan/credit is also considered as the major source of risk for the bank management. The management of bank always tries to make an appropriate balance between its return and risk involved with the loan portfolio. From this report, I have learned about how Janata Bank distributes loan to its client and how they recover it. I have also learned about their credit policy system which is applying for disbursement and recovery of distributed loan. The data is used to furnish this report have been collected from both the primary sources and secondary sources. Among primary and secondary sources, I took most of the information from the secondary sources. Some information or data is used based on secondary data collected from different website, official website of Janata Bank, JBL manual, Desk report sheet of the related section or department and training sheets also.