BSB REPORT.doc

8/9/2019 BSB REPORT.doc

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1. Background of the banking Sector in Bangladesh

A. Introduction

After independence of Bangladesh the banking sector was restructured

as a fall out of war liberation. Banking grew primarily in the public

sector with a view to reconstruction of the war-torn economy. With

gradual liberalization in subsequent years, it was increasing felt that

banks should be allowed in the private sector, for development

process. n the !"#$%s for the &rst time a number of banks in the

private sector were allowed. 'ubsequently in the mid "$%s some more

banks in private sector commenced operations. n !""", (rd generation

of private sector banks was given permission to operate. )inally in

*$$! +th generation of private banks commenced operation.

ow we are standing in the dawn of the new millennium in a

progressively emerging scenario of economic liberation dominated by

W regime where the private sector in the engine of economic

growth. he challenges of globalization particularly in service sector

have become quality service, quick service, reliable service,dependable service etc. As part of the service sector, bank must

belong to be producing qualitative service within shortest possible time

for its immediate success.

As /knowledge% has become /cutting edge% business professionals of

the new millennium would require a multidimensional 0

multidisciplinary knowledge, training and e1pertise to be able to

discharge their professionally competitive responsibilities adequately

and e2ectively. he business community must therefore act proactively

in devising relevant strategies to meet those emerging challenges

completely and utilize the opportunities bene&cially for greater

business professional and public interest. Besides, the &rst ministerial

meeting of the W held in 'ingapore in 3ecember, !""4 identi&ed

accountancy as the most important service sector for promoting

transborder 5ow of funds. 6ood &nancial reports promote investor

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con&dence, facilitate the 5ow of investment funds, and thereby

encourage economic development.

With keeping these views in the mind the department of 7arketing

launched an nternship 8rogram for out going business graduates for

the duration of ( months to e1pose themselves with more practical

oriented and to enhance the students% e1posures to the rural world

business environment. n order to accomplish the practical training as

part of 9nternship 8rogram: attached with Bangladesh 'hilpa Bank

;B'B


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product is 9service:. he bank that is able to provide multi-natural

service to the customer eciently, the bank will undoubtly raise

overnight. 9Cuality of service: is the main reason as to why people will

come to our bank instead of other banksD @very bank provides servicesand facilities but the bank who should di2erent than others in terms of

service and eciency. herefore in the present borderless economy

and era of globalization bank should be committed to do something

e1tra than others.

♦ )aster service

♦ @cient 7anpower

♦ 6iving CuickE'pot decision

♦ FonestyE'incerity

♦ 7oral human being

♦ Geliable 7anpower.

D. rinci!al Activities of the bank:

he principal activities carriers out by the bank are providing all

kind of commercial banking activitiesEservices to its customers through

its branches in Bangladesh. 'ince inception the bank has been

rendering high quality services in di2erent areas of banking and able to

win con&dence of the public through e1cellence of services,

professional competence and employment of the art technology.

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". Background of the Stud#:

a. Introduction:

Bangladesh 'hilpa Bank ;B'B< as the prime 3evelopment

)inancing nstitution ;3)< of the country e1tends &nancial assistance

both the local and foreign currencies for setting up new industries

B7G@ of e1isting industries rehabilitation of sick industries.

he bank has &ve divisions and twenty one departments in its

head oce located in 3haka at 7otiHheel named 9B'B Building:.

Besides, there are three zonal oces in di2erent divisions namely

?hittagong, GaHshahi 0 Ihulna.

Among twenty-one departments Joan peration 3epartment

;J3< is most important because sanctioning and analyzing loan

proposal is e1ecuted in this department and then the function of all

other departments starts gradually. f this department can select

proper and suitable proHect, recovery of loan amount along with

interest become easy and secure and therefore, industrial growth and

sustainability also become fruitful. 'o, total B'B and managers should

concentrate their more e2ort attentively in this department.

b. $rgani%ational Attachment:

he department of 7arketing selected the host organization for

the students. he department after consultation with the top

management of the host organization sends the interns to the

organization for ( months practical training under the guidance of the

faculty Advisor. )ollowing all these rules am deputed in Bangladesh

'hilpa Bank for accomplishing the said program. n this bank, the

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training department of Bangladesh 'hilpa Bank ;B'B< scheduled an

internship program covering almost all activities of B'B. worked

according to scheduled and prepared the report.

c. roblem statement

Bangladesh 'hilpa Bank ;B'B< is being functioning to

accelerating to industrialization in the country by providing equity loan

to various sectors. he main obHective is to create employment

opportunity, infrastructural development, upgrading living standard

and social welfare through industrial long term &nancing. n the

process of loan sanctioning, strictly B'B order !"K* is being followedand research has been made to improve and upgrade the processing

consideration with changed free market, improved technological edge.

his process is lengthy, have some weakness. 'o, a research to

improve and update loan sanction and recovery process should be

conducted. Beside while assessing proposed proHect social contribution,

638 ;6ross 3omestic 8roduct< ?ontribution should be considered. n

the other hand, there should keep provision to have proper and

sucient collateral against loan sanctioned which is speci&ed but in

practice it is not strictly followed and maintained. Why it is not being

followed and to what e1tant it is being followed should be under

e1amination and research.

d. $b&ective of the stud#:

!. o get an idea about the history of B'B and nature of operation

and function of loan operation department.

*. o be familiar with the current loan sanction procedure of

Bangladesh 'hilpa Bank.

(. o enrich personal skills and knowledge.

+. o implement personal theoretical knowledge to improve loan

sanction procedure in practice.

=. o form some essential guidelines for B'B and sanctioning

procedure.

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4. o have some recommendation for improving the sanctioning,

monitoring and recovery loan.

K. o determine the limitations of the operation of B'B.

#. o evaluate the trend growth rate and acceleration of industrialization.

". o mis-match of the practical knowledge with theoretical

knowledge.

!$. o e1pose ourselves to the service sector which is more

challenging profession.

e. 'ationalit# of the Stud#

About 4$L proHects on an average &nanced by B'B become sick

or cannot go a long way successfully. Gemaining +$L proHects are

contributing for its own sustainability. f this study can increase the

portion of successful proHect operation, this will be a great help and

success for B'B as well as industrialization and social welfare. Besides,

no research has been e1ecuted in this ground recently. his research

will cost a small amount, since it is a theoretical development research.

his research obviously will contribute to enrich and update the proHect

appraisal manual and 9B'B order !"K*:. t may provide helpful in other

specialized Banks and 3)? of Bangladesh.

f. Methodolog# of the Stud#:

have worked as per scheduled program for internship that

includes di2erent department of B'B. )or preparation of nternship

report have chosen 9Joan 'anction procedure of B'B:. have

prepared this report after collecting information and gathering practical

e1perience on performing work in the bank. he maHor steps that

followed are>

ral discussion with department heads and clerks.

)unction analysis of department.

Assessment of samples, like

a< Appraisal report

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b< B'B order !"K*

c< 7anual

d< Annual Geport

e< rganizational ?harts.

Institutional $vervie(

)i* Establishment

Bangladesh 'hilpa Bank ;B'B< once a leading developed &nancial

institution ;3)?< established in ctober (!, !"K*.

)ii* $rgani%ation

+ead $,ce 3haka

Division =

De!artment *!

-onal $,ce (

Branch $,ce !=

ersonnel K"+

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)iii* Ca!ital Structure

Authorized ?apital > k. *,$$$ million

8aid up ?apital > k. !,(*$ million

)iv* Sources of fund

he sources of Bank%s fund are the 6overnment, Bangladesh

Bank, ?ommercial Banks, JocalEverseas )inancial nstitutions,

?ustomer deposits and suppliers credit.

)v* $(nershi!

At least =!L of the Authorized capital of B'B be subscribed by

the 6ovt. and remaining +"L by Bangladesh nationals of by local orforeign &nancial institutions. 8resently, !$$L ownership of the bank

belongs to the 6overnment.

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?onducts proHect promotional activities along with preparation

of various subsectoral study reports.

8rovides working capital loans to industrial proHects.

BSB: At a /lance

2000-2001 2001-2002 2002-2003 2003-2004

(no. of projects)

Loan Applications received 13 31 31 51

Term Loan Sanctioned

!e" 5 5 1# 21

$%&' - 1 2 3

Additional 3 2 1 3

Total 8 8 21 27

orin* capital Loan Sanctioned 2 1 3 5

Term Loan +is,rsed 10 # 11 14

Started ommercial /peration 5 2 2 4

&eprased&escedled 4 52 2 1

'ntered into Loan ortfolio 3 2

Liidated Loan Lia,ilities 32 21 31 22

Total Loan Portfolio 532 513 461 308

(Million taka)

Term Loan Sanctioned 263 1#6 141# 6#6

Term Loan +is,rsed 134 #4 10 26

Loan &ecovered 1400 116# 131 1124

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orin* apital Loan Sanctioned 6 4 30 16

orin* apital Loan +is,rsed 15 1 6 2#

&eprased&escedled 54 1#33 50 146

)i0* $!erational Activities of the Bank

Bangladesh 'hilpa Bank being the prime development &nancing

institution continued its e2orts in )M *$$(-$+ to make an e2ective

contribution towards e1pansion of industrialization process of the

country. By mobilizing local resources, the bank emphasized on long

term lending to the viable, comparatively advantageous, e1portoriented, forward and backward linked, agro-based, local technology

and raw material based proHects.

op priority has been given for realization of its loan towards

augmenting and recycling of the investable funds and maintaining

satisfactory loan portfolio for increasing pro&tability. Besides, in )M

*$$(-$+ the bank has introduced one-stop service in its commercial

banking operation for better and modern customer service.

)0* rot and 2oss:

he bank made a net pro&t ;after adHustment< of k. +*.!$"

million during )M *$$(-$+ as against k. K#."= million after adHustment

in the previous year.

)0i* De!osit mobili%ation:

3uring )M *$$(-$+, the bank tried to meet its fund requirement

from various sources for lending and investment. he bank emphasized

more on deposit mobilization during the period total deposit was k.

=+$ million on Nune ($, *$$+.

)0ii* 2oan A!!lication received:

3uring the period under review, the bank accepted =! new loan

proposals after proper scrutiny.

)0iii* Sanction of 3erm 2oan:

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he bank continued sanctioning of term loans during )M *$$(-$+.

his year local currency loan of k. !+!# million was sanctioned to *!

proHects of the total sanctioned amount k. !*(4 million was for !#

new proHects and an additional loan of k. !#* million was for ( on

going 8roHects including * for B7G@ purposes.

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3able41

Sanction of 3erm 2oan

%illion Taa

!atre ofte

roject

2002-2003 2003-2004

!m,er

of

rojects

Local

rrenc7

8orei*n

rrenc7

Total !m,er

of

rojects

Local

rrenc7

8orei*n

rrenc7

Total

!e"

rojects

1# 123 - 123 21 # - #

'9istin*

rojects

($%&')

2 102 - 102 03 1 - 1

Additional

Loans

1 #0 - #0 03 13 - 13

Total 21 141# - 141# 2 6#6 - 6#6

)0iv* Commitment and distribution of 3erm 2oan

3uring )M *$$(-$+, the bank made commitment of k. !!4

million in local currency to + proHects. 3uring the period, the bank

disbursed term loans of k. !K$ million in local currency to !! proHects

as against disbursement of k. #+ million to # proHects in the previous

year.

3able4"

Commitment and Disbursement of 3erm 2oans

%illion Taa

ommitment

+is,rsement

2002-2003 2003-2004

!m,er

of

rojects

Local

rrenc7

8orei*n

rrenc7

Total !m,er

of

rojects

Local

rrenc7

8orei*n

rrenc7

Total

ommitment 3 14 - 14 4 11 - 11

+is,rsement # #4 - #4 11 10 - 10

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)0v* Sanction 5 Disbursement of (orking ca!ital

3uring )M *$$(-$+ the bank sanctioned working capital loans of

k. ($ million to ( proHects and disbursed k. " million to + proHects.

he Bank sanctioned k. + million to ! proHects and disbursed k. !million to * proHects in the last year.

)0vi* $ther Investment

3uring )M *$$(-$+ the bank invested k. 4.++ million to purchase

shares from the primary and secondary markets and the bank earned

an amount of k. =.#* million as capital gain, dividend and commission

from share trading.

)0vii* ro&ect im!lementation3able46

Stages of im!lementation of !ro&ects

Position of Projects Under !"le!entation 2002#2003 2003#2004

$%!&er of Projects $%!&er of Projects

Started ommercial /peration 2 04

:nder onstrction 5 0

+ocmentation ompleted 4 15

A"aitin* +ocmentation 23 22

)0viii*. Sector4(ise 2oan $utstanding osition )ma&or sectors*

48%

5% 12% 7%

9%

3%

5%

2%

Textile Jute Others Service

Che mical Me tal Le athe r Pape r

2oan !ortfolio

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3able47

Sector4(ise !osition of Bank8s 2oan !ortfolio as on 69 9;"997

'ectors $o of Projects !o%nt of TotalLoan (!illion taka)

8ood and Allied rodcts 5# 1335

;te and Allied rodcts 5 4

otton< oolen and S7ntetic Te9tiles # #14#

aper< aper rodcts and rintin* 15 561

Tanner and Leater rodcts 6 333

!on-%etallic %ineral rodcts 4 130

8orest and ooden rodcts 1

&,,er and &,,er rodcts 2 4

$asic %etal rodcts 1 2

%etal rodcts 14 304

'lectrical and %aciner7 and =oods 354

%aciner7 and Spere arts 13 160

Transport eipment 12 #

emical and parmaceticals 2 #12

etro emical rodcts 10 40

Service >ndstries 2# 422

%iscellaneos 13 16#

Total $S$ rojects 304 1366

Total $S> Sponsored rojects 4 1

*rand Total 308 13++8

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)0i0* 'ecover# of 2oans

3able4<

Cate!r" !$ L!a%s &m!u%t 'ec!vere( )milli!% T*+,2--2.2--3 2--3.2--4

A. Long Term Loans:

Long Term Projects Loans 989 915

Bridge Loan 1 1

Staff Loan 34 35

Administered Loan 137 105

Su/.T!tal 1101 1-50

B. Sort Term Loans

!or"ing #a$ita% Loans &3 &7

'ters()e*ent+res,Sares,Loans

against -)/

13& 41

Su/.T!tal 155 08

ra%( T!tal )&, 1310 1124

)00* 2egal Actions taken for 'ecover# of 2oans:

he 7oney Joan ?ourt Act *$$( has been enacted in the year

*$$( with e2ect from 7ay $!, *$$( in order to streamline the process

of realization of loans and advances by the banks and &nancial

institutions. 8rovisions have been made in this Act for realization of the

banks dues by selling of properties held as security without &ling suits

before the court.

3able4;

osition of !ro&ects =nder2itigation

*$$*-*$$( *$$(-*$$+

umber of 8roHects

umber of 8roHects

Jegal otice ssued *# !*4

)illing of 'uit != *$=

?ases 'ettled utside the ?ourt (! $4

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Auction !$ $*

A Short brief on de!artments of BSB

Bangladesh 'hilpa Bank encompasses various departments and zonaloces to discharge its activities. o perform eciently and e2ectively

B'B in its board meeting has determined the schedule activities of

various departments and zonal oces and they supposed to perform

the task accordingly and the respective employee have to report

according to organizational hierarchy.

Activities of some important departments are enumerated below>

a. 2oan $!eration De!artment )2$D*

!. o give advice to the entrepreneur about industrial investment, to

give loan form and to appraise the proposed proHect from various

aspects-management 0 organizational appraisal, technical

appraisal, market appraisal, economic appraisal and &nancial

appraisal.

*. o present the loan proposal to the loan sanction committee to

overhaul the proposal and to take recommendation from them.

(. o take clearance from privatization board for the proposed

proHect, if necessary.

+. Joan sanction letter send to subsequent departments to take

necessary action to implement the proHect.

=. Ge-evaluate the proHect on the basis of up dated information.

b. ro&ect Im!lementation De!artment )ID*

!. aking action to implement the proHect after sanctioning of loan forthe proHect.

*. aking action to approve the layout plan for the proHect.

(. 'ite change for the proHect, co-ordination of board of directors of the proHect and product mi1.

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+. o take action and monitor the step-by-step e1penditure of proHectagainst loan money according to the schedule of loan.

=. o ensure acquisition of entrepreneur equity and its e2ectiveutilization.

c. Documentation and machineries !rocurement de!artment

)D5MD*

!. o prepare list of equipmentEmachinery and approval of it to

incorporate in the tender.

*. o assist the promoters to invite tender and other formalities.

(. o overhaul the documents related to machinery and accumulate

information regarding to suppliers.

+. o analyze and collate the tender price, quality of machinery

among the bidders and taking approval from the authority.

=. o make the rules and procedure of machinery procurement and

coordinate the activities of branch and zonal oces.

d. 'ecover# de!artment )'D*

!. o maintain ne1us with loanee at all time to accelerate the loan

recovery procedure.

*. f required, recovery department consider the additional loan or

B7G@ for its loan portfolio proHect and by taking asset from the

loan operation department it takes steps to materialize the

endeavor.

(. o reschedule the unpaid loan and implement it accordingly.

+. o monitor the progress of proHect, its triumph according to

schedule and instantaneously notify it to the concerned authority.

=. o maintain association with other department to make the rules 0

procedure about proHect implementation rehabilitation etc.

e. ro&ect 'ehabilitation De!artment )'D*

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!. f this department or any branch or zonal oces primarily select a

proHect become sock, 83 investigates the proHect and &nd out the

reason of sickness and formed rehabilitation committee to

invigorate the proHect.

*. When there is no scope to rehabilitate a proHect, send it to law

department to take further steps.

(. o diagnosis the sick proHect, prepare schedule and implement it

accordingly and to some e1tent ensure proper management after

rehabilitation.

+. o analyze and compare the production, marketing and recovery of

the rehabilitated proHect and take appropriate action accordingly.

f. 2oan Accounting de!artment )2AD*

!. o maintain B'B &nanced proHect short or long term loan account

;classi&ed and unclassi&ed


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(. o take case of the &led suitElitigation sued by the bank and to &le

suit in high court and 'upreme ?ourt for the defaulted proHect.

+. o defense the litigation &led by the loanees through advocates

and take steps to resolve it rapidly.

=. o invite auction to sale assets after receiving decree from the

court and maintain elation with the court and coordinate the

activities.

h. Dhaka Commercial Branch )DCB*

!. o operate all sorts of general banking operations according to

banking convention, rules and Bangladesh 'hilpa Bank ordinance.

*. o frame the deposit collection procedure, attract deposit and

maintain the deposit account.

(. o identify the apt sectors for investment, ensure pro&table

investment and coordinate with advance department and central

accounts department.

+. o provide loan and advance against long-term deposit, recover

and adHust between them.

=. o purchase and sale of prize bond and saving certi&cate.

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2oan Sanction rocedure

1. Introduction

)irst of all, a client who wants to have a loan asks for anapplication form, which is known as Bangladesh 'tandard

Cuestionnaire )orm ;B'C)


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". 2oan A!!lication form of BSB

BA>/2ADES+ S+I2A BA>?

+ead $,ce@ Dhaka

2$A> A2ICA3I$> $'M SE33I>/ = $ A >E I>D=S3'IA2 =>I3

SEC3I$>4A

ro&ect@ romoters @ Cor!orate Set4u! and Management

1. ro!osed ro&ect:

ame of the 8roHect>

Jocation of the 8roHect>

Jines of the 8roduction>

Amount of loan applied > ;a< )E? ;b< JE?

". romoter)s* A!!licant)s*:

;a< 8articulars of the promoters

Address ;es< ame and address of bankers

ame ;s< OOOOOOOOOOO..

OOOOOOOOOOO..

)ather ame OOOOOOOOOOO

..

OOOOOOOOOOO..

'pouse ame OOOOOOOOOOO..

OOOOOOOOOOO..

;b< 8articulars of the persons closely related with the promoters i.e.father, mother, spouse, son ;s


24/59

;c< 8lease give particulars of assets and liabilities of thepromotersEdirectors as per the attached )G7-A

;d< 8lease sent a letter ;s< addressed to your banker ;s< as per theattached )G7-A and enclose a copy thereof with this application.

6. C$'$'A3E SE34= )C$>S3'=C3I$>*:

8lease specify if your concern isEwould be a private limited

company, public limited company or co-operative society or

partnership &rm

f limited-liability company ;please tick<

;a< 8rivate

;b< 8ublic

;c< Already incorporated or not

;d< f already incorporated 3ateOOO..OO.. 8laceOOOOOOO

;e< 3irectors

ame ;s< father ame ;s< Address;es< 'hare-holding

e1istingEproposed

OOOOOOOOOOOO

O..

OOOOOOOOO

OO

OOOOOOOOOO

OO..

OOOOOOOOOOOO

O..

OOOOOOOOO

OO

OOOOOOOOOO

OO..

OOOOOOOOOOOO

O..

OOOOOOOOO

OO

OOOOOOOOOO

OO..

OOOOOOOOOOOO

O..

OOOOOOOOO

OO

OOOOOOOOOO

OO..

OOOOOOOOOOOOO..

OOOOOOOOOOO

OOOOOOOOOOOO..

;f< A copy of the memorandum and

Articles of Association> enclosed

;g< A copy of the certi&cate of incorporate

Gation> enclosed

?o-operative society>

;a< ame of the presidentOOOOOO..;Address<

OOOOOOOOO

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;b< ame of the secretaryOOOOOO..;Address


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=. Fave the proposed directors any interest in trading andEor industrial

enterpriseD f so please specify the e1tent of interest and address ;es<

of the enterprise ;es< and enclose the audited balance sheet ;s< 0

pro&t 0 loss accountsEstatement of a2airs of such enterprise ;s< for the

last three years on the basis statement of which their performance can

be Hudged.

4. ;a< did you apply to any other &nancing institution andEor the

7inistryEAgency for &nancial assistance or permission to set up this

proHect or any other proHect.

f so, please state the status thereof.

;b< 8lease furnish three declarations as shown n form duly &lled in and

signed by each directorsEsponsor.

SEC3I$>4B

8AG?PJAG' ) 8GN@?

. ro!osed roducts:

;a<;b<

;c<

;d<

8roduct Cuantity Annual rated capacity Qalue ;value of sales<

;n case any feasibility study for the proHect has already been made, acopy thereof may .. 8lease be enclosed with this application

;a< Back ground and reputation of the collaboration

;b< Area and &led of their business activities;c< heir latest audited balance sheet and pro&t 0 loss accounts.

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. ro&ect land:

. 8lease specify if the following will be available at the proHect site;please tick<

;a< Water;b< 8ower

;c< 6as

;d< ?ommunication )acilities

;e< )ree hold

;f< Jease hold

. f lease hold, please furnish a copy of the lease deed ;if alreadye1ecuted

Q. 8rice of land> 8aid>akaOOOOOOO..asonOOOOOOOOOOOO.O

o be paid> 8aid>akaOOOOOOO..asonOOOOOOOOOOOO.O

Q. 3evelopment of land> ?ost incurred> akaOOOOOOuptoOOOOOOO.

?ost to be incurred> akaOOOOOOOOOOOOOOOOOOOOOO.

19. B=I2DI>/ A>D CII2 $'?S

8lease show the estimated area and cost of building ;e1isting andadditional separately< for factory, godowns and other buildings, if any,required for the proHect as per the following proforma, to gather withthe cost of internal road boundary walls, tanks, drains, system, Hettyetc.

ypes of buildingE?ivi

l works

'peci&cation of

?onstruction

Area in sft GateEsft @stimated?ost

11. lant and Machiner#:

8lease give a complete list of the machinery and cost of the machinery;imported and local separately< together with the competitive pricequotation, indicating, among other thing, of the machinery, and theillustrate, brochures etc. from at least two suppliers of machinery.

1". E'EC3I$> A>D I>S3A22A3I$>:

8lease state the arrangement ;s< already madeEto be made for erectionand installation of machinery.

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16. =3I2I3IES:

8lease furnish information about the following of your proHect>

;a< 8ower> a< ?onnected load required and source of supply

b< Jetter of consent, if already obtained from appropriate

Authority, may please be enclosed with thisapplication

;b< )uel>

17. 'A MA3E'IA2

8lease indicate the annual requirement of raw material at !$$$ capacity utilization ;on the basis of the shift of # hour per day< as perthe following proforma>

;a< mported>

ame of tems

'peci&cation

Cuantity of !$$L

capacity

otal ?0)8rice

Janded costfactory site

at

;b< Jocal>

ame of tems

'peci&cation

nly at!$$L

capacity

otal ?0)8rice

Janded costfactory site

at

1IS3'A3IE SA2ES

ame of

post

o ;s< 'alaryE7ont

h

ther fringe-

bene&ts if any per

month

otalE

annual

)C* 2abour:

'killed

Pn-skilled

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)d* 8lease mention the name of directorEocers who will be

responsible for supervising the administrative and technical aspects,

both at the implementation and production stage. 7ention the

quali&cation and e1perience of each of them.

1;. C$S3 $ 3+E '$FEC3 5 MEA>S $ I>A>CE:

8lease give the detail of the proHect cost as per the following proforma>

k. in $$$<

Jocal )oreign otal

a. Jand OOOOOO

O

OOOOOO

O..

OOOOOO

O.

b. Jand development OOOOOO

O

OOOOOO

O..

OOOOOO

O.

c. Building OOOOOO

O

OOOOOO

O..

OOOOOO

O.

d. ther civil work OOOOOO

O

OOOOOO

O..

OOOOOO

O.

e. mported machinery

and equipment

OOOOOO

O

OOOOOO

O..

OOOOOO

O.

f. Jocal machinery and

equipment

OOOOOO

O

OOOOOO

O..

OOOOOO

O.

g. ?ustom duty OOOOOO

O

OOOOOO

O..

OOOOOO

O.

h. nternal freight OOOOOO

O

OOOOOO

O..

OOOOOO

O.

i. @rection and

nstallation

OOOOOO

O

OOOOOO

O..

OOOOOO

O.

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H. )urniture and &1ture OOOOOO

O

OOOOOO

O..

OOOOOO

O.

k. Qehicle OOOOOO

O

OOOOOO

O..

OOOOOO

O.

l. 8reliminary and

'tartup e1penses

OOOOOO

O

OOOOOO

O..

OOOOOO

O.

m. ?ontingencies OOOOOO

O

OOOOOO

O..

OOOOOO

O.

3$3A2 OOOOOO

O

OOOOOO

O..

OOOOOO

O.

et working capital OOOOOO

O

OOOOOO

O..

OOOOOO

O.

otal ?ost of the

8roHect

OOOOOO

O

OOOOOO

O..

OOOOOO

O.

1. MEA>S $ I>A>CE:

;A< 8lease state as to how the cost of proHect is proposed to be met asper the following proforma>

(Taa in 000)

Local 8orei*n Total

(a) 'it7 capital

Sponsors contri,tion ???????. ???????. ???????

,lic >sse ???????. ???????. ???????

/ters ???????. ???????. ???????

(,) Loan from $S$ ???????. ???????. ???????

(c) /ter specif7 (if an7) ???????. ???????. ???????

Total ???????. ???????. ???????

;B< 8lease indicate the name;s< of commercial Bank;s< who woulde1tend your short-term loan for working capital purpose againsthypothecationE pledge of stocks. 8reliminary arrangement made, if any, in the regard may please be mentioned.

1. 8lease give your own estimated pro&tability of your proHect

indicating underlying assumptions of pro&tability estimated as perfollowing table>-

?apacity utilization Mear! Mear* Mear(

a< 'alesErevenue

b< ?ost of goods

sold

. Gaw materials and spears

. 8ower fuel and water

. 3irect labor

Q. Gent, ta1, and insuranceQ. Gent and maintenance

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Q. 3epreciation

otal

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;c< 6ross 8ro&t ;A-B

;3

'alaries and remuneration of 3irectories

;administrative and sales personals<

'tationary and 8rinting

8ostage, telephone, telegram, electricity and tele1

raveling and conveyance

'elling e1pense, including advertisement and sales promotion

3epreciation of oce assets

Amortization of preliminary e1penses

Amortization of interest during construction

7iscellaneous e1penses

3$3A2

@. )inancial e1pense ;interest on loan<

). otal general administrative and &nancial overhead ;3R@<

6. et operating pro&t before ta1 ;?-)<

F. 7AGI@6 A3 '@JJ6 AGGA6@7@'

1. 8lease indicate as to who are the maHor producer and consumer of

the proposed product;s< and the proposed selling arrangements

;through agents, wholesaler or retailer< for your products ;s


33/59


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Project Appraisal Procedure of BSB

A committee, known as 98roHect Appraisal ?ommittee: consisting

of engineer and other technical e1perts, &nancial analysts and

economists has been responsible for appraisal of a particular proHect. he engineer appraises the technical aspects, the &nancial analysts

evaluate the &nancial aspects and the economists appraise the

commercial aspects of the proHects. he proHect appraisal committee

prepares proHect appraisal report after evaluating these aspects. he

said committee is under the 9Joan operation 3epartment: of the B'B.

A committee consisting of all assistant general manager of B'B

scrutinizes this report. he general manager of the loan operation

department is the head of the committee. hen the report is placed

before the board of directors of B'B for &nal approval

Ste!s in ro&ect A!!raisal

here are several steps involve in proHect appraisal. he steps

are as follows>

a< ssuance of loan application form>

he starting point of proHect appraisal is the receipt of loan

application form from the sponsors in the banks standard questionnaire

form known as B'C). he sponsors are required to submit full dressed

feasibility report at the time of submission of loan proposal to the B'B.

he sponsor can get their feasibility report prepared by any &rms

at their own cost. hey can also prepare the feasibility report by

themselves. he sponsors are required to submit the application form

dully &lled in along with other papers and documents and also pay the

required proHect deposit. n terms of the present policy, sponsors are

required to pay proHect deposit of !$L of the proHect cost as part of

their equity during the various stages of sanctioning loans. he proHect

deposit is taken to ensure timely mobilization of sponsor%s equity in the

proHect.

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b< Geceipts of &lled in Bank 'tandard Cuestionnaire )orm ;B'C)

he concerned section ;called the receiving cell< scrutinizes the

&lled-in-B'C) together with the required papers and are found in order,

the loan proposal is considered as fully documented and accepted for

further processing. ?ontents of B'C) are given below>

c< nformation ?ontained in the Joan Application )orm>

o obtain funds from B'B every proHects sponsoring agency has

to submit loan application to the B'B in the prescribed 9Joan

Application )orm: known as bank%s standard questionnaire form;B'C) )orm-!, )orm-*, )orm-( and )orm-+.

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art4A

his part prescribes the entrepreneur to provide information

about

i. he proHect name, location site of the proHect, line of production

and amount of loan applied in terms of local and foreign

currency.

ii. the personal details of the promoters and their closely related

persons i.e. father, mother and spouse etc. heir name, address,

quali&cation, e1pertise etc. are required.

iii. the type of the company either t isEwould be private, public,

partnership or co-operative society.

iv. n case of limited company, if it is already incorporated then the

date, place of incorporation, directors particulars, portion of

shareholding, a copy of memorandum, articles of association and

incorporation certi&cate is required.

v. n case of co-operative society, the name and address of the

president and secretary, a copy of society%s institution, By-laws

and certi&cate of registration needs to be mentioned. n case of

partnership, the name address, share of interest, copy of

registered partnership deed is requiredS.

vi. he management of the proposed company. he name, position

of the personal, if they have other business then three years

audited balance sheet, pro&t and loss statement need to beenclosed. f they applied to any other &nancial institution for this

proHect or any other proHect that also need to be stated.

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art4B

his part requires technical information relating to the proHect are

as follows>

i. 8roposed product, quality, capacity, sales value, detail

arrangements of foreign collaboration if any.

ii. nfrastructural facilities ;water, gas, power, communication etc.


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iv. @stimated capacity, sales, cost of goods, gross pro&t,

administrative e1pense, &nancial e1penses and net pro&t at least

for three years.

art4D

his requires information elated to marketing and selling

arrangement such as>

i. 8roducerEsupplier of the raw material, target consumer and the

marketing channel.

ii. 8roposed selling price and prevailing market price of the product.

iii. f the product is particularly or fully proposed to be e1ported,

information about the quantity of the product, name of the

imported countries along with the )B price of the products are

required.

art4E

his part containing general information which are not covered by thisquestionnaire but have a material impact on the feasibility of the

proHect like estimate of foreign e1change earningEsavings, any other

advantage of national importance, declaration by the sponsor.

Sub4orms

)G7-!> 3eclaration of assets and liabilities of promotersEdirectors.

)G7-*> )orm of a letter to be addressed to the banker ;s< of the

applicant.

)G7-(> Bio data of promotersEdirectors in case of partnership

business.

)G7-+> hree types of Adavits for the sponsorEdirectors.

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rocessing of 2oan ro!osal:

n receipt of the fully documented loan proposal, it is forwarded

to the appraisal section for processing in keeping with the proHect

appraisal manual, policy directors of the 6overnment and other

directives of the board of directors of B'B received from time to time.

he proHect appraisal is carried out by a professional team comprising

an @ngineer, an @conomist and a &nancial analyst under the guidance

of the senior ocials of the B'B. he appraisal of the loan proposal

covers technical, market, and &nancial, economic and managerial

aspects.

DiGerent As!ect of ro&ect A!!raisal

@very organization has some special rules, regulation and

procedures that strictly follow for any types of dealings. A proHect is a

proposal for an investment to create e1pansion andEor develops certain

facilities in order to increase the productions of goods andEor services

in a community during a certain period of time. 8roHect appraisal is

needed to be satis&ed about the overall viability of a proHect to be

&nanced. An obHective assessment of the viability of a proHect is

required to be scrutinized by B'B from various point of view. his is

known as proHect appraisal.

he aim of proHect appraisal is to e1amine the need of the

proHect, Hudge whether the proHect is likely to meet this need and ful&ll

requirement in respect of B'B. t is an important basis of decision-

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making because proHect appraisal gives a clear idea about whole

aspect short-term lending. t is not usually necessary to make

e1tensive study of the customer%s future potential. @1amination of

general credit worthiness of a customer and his current &nancialposition is adequate.

Although there is no &1ed or standardized approach for proHect

appraisal nevertheless numerous and diverse elements can come into

the process of appraisal. t is dicult to appraise of a certain proHect

suciently however should cover as much as possible. B'B tries to

follow some set of scrutinize factors for their evaluation procedure. As

a result, they are able to overcome some problem and unnecessarytime consuming.

n practice, proHect appraisal covers &ve di2erent aspect of a proHect,

viz.

7anagement and organization aspect

echnical aspect

7arketing aspect

)inancial aspect

'ocial 0 @conomical aspect

Management and organi%ation as!ects:

An assessment of the initiation is respect of their integrity,

e1perience and capabilities to implement and run a new proHect is of

prime important factor e1tending credit facilities to them. here is no

standard set of rules to identify the borrowers or promoters for new

industrial establishment. t is to be done by direct and indirect

investigation. he borrowers e1perience and capabilities can be

assessed in terms of his educational background, special quali&cations,

practical business e1perience, and receptiveness to new ideas, the

general reputation and adaptability to new and changing situation. o

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Appraisal of management and organization of a proHect cannot

be done without proper Husti&cation and undertakings of a

methodological credit investigation.

Sources of information:

particular information is necessary to evaluate the credit worthiness of

a speci&c proHect. here are several methods like written requests,

telephone conversation, informal meeting, physical veri&cation and

past records. Which may be Hointly or uniquely adopted to obtain the

required information. he usual sources of information can be broadly

categorized into internal and e1ternal

Internal sources: 3etails of past borrowingsEequity support

such as amount, date of sanction, amount repaid, amount

outstanding and overdue, together with comments on aspects

like replacement etc.

E0ternal sources: ?redit information bureau report, interview

with the applicants, &nancial statements, deed and statutory

documents, investigation of business properties, register of Hoint stock companies and government publications.

2iHuidit# !osition of the a!!licants:

he credit investigation must satisfy that the applicants are &nancially

capable of undertaking a proHect of the contemplated size. his calls

for determination of the sources and e1tent of funds that the

applicants are capable of mobilizing and also the e1tent they are ready

to invest. he liquid funds necessary for day-to-day business activities

and procure &1ed assets in the proHect may be mobilized by the

applicants from one or more convenient sources.

Ca!acit# measurement of the a!!licants:

he most important prerequisite that the bank e1pects the applicants

to posses is the capability to manage and supervise. ts presence

blooms a proHect and its absence dooms the same. he followingfactory may consider in this respect>

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nvestigation how successful the applicants are in their present

trade and profession.

Nudge whether they are &nancially and managerially competent

to undertake and implement the proHect.

Analysis of the past operations, opinion of the commercial

bankers, independent opinion from outside sources etc.

8ast repayment performance of e1isting loans.

3echnical as!ects:

he technical aspects encompasses whether the proHect is sound

with regard to every engineering and technological consideration. n a

developing country like Bangladesh where there is hardly an

indigenous technological base to support the industrialization process

the industrial undertakings have to be conceived on the basis of know

or borrowed technology until such time as the development of local

technology is sucient. hen evaluate the cost of these resources in

monetary tem to determine the capital cost of the proHect and also its

operating cost after implementation. While evaluating the capital

outlay and physical facilities, the engineer will have to determine the

production cycle and also the time schedule for implementation of the

proHect. n the case of a proHect involving technical collaboration or

borrowed technology, the proHect engineer has to e1amine various

facets of technology and its adoption to the local condition including

technology transfer and &nancial and economic implications of such

transfer of technology. he technical studies and cost analysis provided

the basis both for he initial estimates of the pro&tability of an

investment during the initial stages and for the &nal decision to

implement the proHect. A development bank may need to consult or

contact specialized engineering services from outside for specialized

matters, particulars relating to proHects to be based on comple1

technology. his point is of great practical signi&cance while dealing

with a proHect in which the country has no previous e1perience. n such

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a situation, particularly in the case of proHect involving large capital

outlay, it is advisable to &nd out best advisors from outside. Any defect

in the proHect design and formulation will eventually a2ect the

enterprise adversely. he following factors should be considered.

reliminar# investigation: 8roducts and services, raw

materials, skill manpower and technology required for

manufacture the product and services and testing analytical

report.

Selection of !roduction !rocess: ?hoice of alternative and

selection criteria, wastage in manufacturing process, by-

products and their recovery, disposal of wastes and eTuence

and environment pollution control.

roductivit# and site selection: echnical factors, cost

factors of production, marketing factors, administrative and

housing factors and transportation factors.

2a# out of !lan: 'ite selection for building, plant and

machinery and supplementary installments, estimation andevaluation of cost.

ork schedule and evaluation of utilities and su!!lies:

raw materials, stores and spares, technical know-how, transfer

of technology, power, fuel water, steam, labor and transporting.

Marketing a!!raisal:

An industrial proHect is to bring in some goods or services for a

community. he market includes the whole environment in which the

enterprise is to live and to which it must adapt itself. 7arket analysis is

the &rst screening stage in the proHect appraisal, at which proHects that

cannot accept satisfactory market acceptance shall be reHected. )or

appropriate marketing obHective, it is necessary to look at depth into

the macroEmicro demandEsupply situation for speci&c products in the

market, e1isting and e1pected competition in local and foreign

markets, the market share etc. while appraising industrial proHects, the

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45/59

bank is required to analysis these factors and to bring out the obHective

in quantitative terms.

roduct identication: ?onsiderable factors are nature of

demand, types of demand, size and composition of present

demand.

Consumer markets: Administrative regions, geographic

regions, climate, and city-size, rural-district cut-size.

Social status: ncome ;level, dynamics, distributionumber and t#!es of industrial users: 'ize of the proHect,

ownership, and age of equipment, regional concentration,

vertical vs. horizontal markets and technological progress.

Market accessibilit#: ari2s and fees, non-tari2 barriers like

quality standards, health medical and safety requirements,

package standards, import quotas, customs regulations and

political and administrative barriers and trading habit.

Su!!l# anal#sis: 8ast and present output, determine the

proHects position in the market and thus e1pected, domesticproducers present and proHected capabilities, new proHects

being under construction, present and proHected e1port volume,

foreign manufacturer capacities marketing strategies and

development plants and government policies.

inancial a!!raisal:

)inancial appraisal is important for the assessment of an

organization. he main purpose of &nancial appraisal is to assess of the

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proposed proHect is viable in term of its operation in the future years

and its &nancial soundness. he &nancial analyst should have a clear

idea about assessment procedure and aware to the achievement from

the &nancial appraisal. he &nancial appraisal is preferred for thefollowing>

und reHuirement: )und is important for the organization. o

bring the proHect into e1istence and the probable sources from

which the required funds will be mobilized. he following are

the usual sources of funds viz. equity capital, paid-up share

capital, reserves and surplus, retained earnings, other sources,

loans from directors, friends, relatives, associates, loan capital,

long-term borrowings etc.

'evenue generation: )inancial analyst also assess about

prospect revenue generation. 8roHects of adequate revenue

generation by the proHect when it goes into operation and the

likely position of the concern with regard to its actual cash

generation and its probable impact upon the &nancial condition.

Cost of the !ro&ect: he cost of a proHect represents all

capital e1penditure to be incurred for acquisition of its &1ed

assets plus the net contribution of long-term resources in the

proposed current assets. n other words, the &1ed cost of the

proHect plus the net working capital requirement to run the

proHect will comprise its total cost. he analysts should assess

various costs relating to the &1ed assets. he &1ed cost of a

proHect is the aggregate of cost of land, building construction,

plant, machinery and equipments etc. working capital is

necessary for investment in current assets like stocks of raw

materials, goods-in-process, &nished goods, stores and spares,

debtors etc. working capital requirement depending on the

nature of the proHect, which should be followed during

appraisal.

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Socio4Economic a!!raisal:

n socio-economic appraisal, the proHect is evaluated from the social

point of view and the economic cash 5ow is constructed on the basis of

true or real prices commonly known as accounting or shadow prices.

@conomic analysis of a proHect aims at determining whether the proHect

is viable with overall national and sect oral obHectives and whether the

investment proposed is the best means of achieving the intended

obHectives or not. t involves a systematic analysis evaluation of a

range of options for achieving a stated set of obHectives. Allocations of

resources to sector or speci&c purposes reduce the resources available

for other sectors and purposes. herefore, it is essential that the

allocation of investment resources be ecient among sectors.

@conomic appraisal is the primary means of determining whether a

proposed investment is worthwhile or not.

A. uantiable factors:

@conomic appraisal should cover both quanti&able and non-

quanti&able factors. he quanti&able factors include the following>

@conomic rate of return ;@GG<

3omestic resources cost

?ontribution to gross domestic product and

@mployment generation etc.

Economic rate of return )E''*: @conomic rate of return measures

the potential earning power of the social resources used in the proHect

and thus helps the assessment of investment proposal. t is worked out

at which the present value of cost becomes equal to the present value

of bene&ts.

3ecision criteria after working out the @GG it should be

compared with the accounting rate of interest ;AG


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decision is that, if other things being equal, the proHect that%s @GG is

less than the AG should ordinarily be eHected unless other non-

quanti&able bene&ts are adequate or the proHect can be qualitatively

Husti&ed. 3etermining the opportunity cost of capital for a society isdicult, but economists generally consider it to be between and KL

and !=L in most developing countries. he planning commission of

Bangladesh has estimated the AGG at != percent.

Domestic resources cost: An industrial proHect will whether be

import substitute or e1port oriented or combination of both in nature.

n a developing country, development of industrial proHect, normally

involves substantial amount of scarce foreign e1change. n the basis

of more absolute amount of saving and or earning of foreign e1change

of an investment proposal, the optimal allocation of scarce resources of

both domestic and e1ternal may not be achieved. he implicit foreign

e1change. n other words, it indicates the domestic resource cost

involved for foreign e1change to be earned by a proHect.

Contribution to gross domestic !roduct )/D*: ?ontribution to

638 of a proHect is estimated from sales value and inter-&rm

transactions. 3ata regarding sales value is taken from the calculation

of sales estimate of the &nancial appraisal. 'ales value of fourth the

year is taken. 'imilarly, data relating to inter-&rm transaction of fourth

year is collected from the calculation sheet of cost of goods sold and

general administration and selling e1pensed of the &nancial appraisal.

3etailed calculation of contribution to 638 of a proHect may be worked

out as per the following format>

'ales ;fourth year< UUU

Jess> nter &rm transaction ;fourth year< 11

Gaw and packing materials 11

'tores and spares 11

Water, power and fuel 11

Gepair and maintenance 11

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Gent, ta1 and insurance 11

8ostage, telephone, fa1es etc. 11

'tationery and printing 11

raveling and conveyance 11

Advertisement 11

7iscellaneous 111 UUU

UUU

?ontribution to 638 ;A-B<

Em!lo#ment generation: he number of full-time Hobs measured

in man-years e1pected to be created both during construction and

during operation of the proHect should be estimated separately. f data

are available, these estimates should be related regional, sect oral and

national levels of unemployment and under employment. Where

possible, the degree of labor intensiveness ;the number of workers

employed per unit of investment< of the proHect should also be

estimated.

B. >on4HuantiableIntangibleE0ternalities:

he non-quanti&able factors refer both the following>

o e2ects that are known to arise but which cannot be measured

in physical terms and

o e2ects, which cannot be valued. 3iculties problems often are

date problem.

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Documents to be submitted after sanction of loan:

Bangladesh Shil!a Bank

+ead $,ce@ Dhaka

D$C=ME>3S AE'S 3$ BE S=BMI33ED A3E'

SA>C3I$> $ 2$A>

!. WaterEsoil test report ;if required


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Blue prints and

7utation certi&cate.

;b< GaHuk, I3A, ?3A 0 B'?? Jand

Allotment Jetter

8ossession 3elivery certi&cates

o obHection certi&cate to create mortgage in favor of the bank

Jease deed duly registered

@vidence of payment of purchase price and

'ite plans.

;c< 8roHect land acquired by 6ovt., 6ovt. Ihash land allowed to

?ompany

Acquision rder

Gequisition rder

Jetter of Allotment

8ossession 3elivery ?erti&cates

o obHection ?erti&cate to create mortgage in favor of the

bank.

Jease deed duly registered and

@vidence of payment of purchase price.

". he sponsoring companies are also required to submit the

following papersEdocuments

8rivateE8ublic Jimited ?ompany>

;a< ?erti&ed copy of 7emorandum 0 Articles of Association.

;b< ?erti&ed copy of ncorporationEcommencement of business of the

company.

;c< ?erti&ed copy of the return of allotment of shares, if any

;d< ?erti&ed copy of summary of share capital

;e< ?erti&ed copy of share transfer deed, if any

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;f< 8ermission from the controller of ?apital ssues for raising paid-up

capital

Where applicable.

;g< Auditors certi&cates regarding the paid-up capital of the company

;h< !$$L share certi&cates of the directors along with blank share

transfer instruments and

;i< Any other papersEdocuments as may be necessary based on the

terms and conditions of sanction of loans.

!$. /?% from GaHukE7unicipal Authorities for setting up the proHect

on land within their area.

!!. /?% from B'?? authority for proHect to be set-up at B'??

ndustrial @state

!*. /?% from B83BE3@'AEB8'E6 0 3?.

!(. /?% from 3epartment @nvironment 8ollution ?ontrol where

applicable

!+. /?% from the 3irector, 3rug Administration ;for pharmaceutical

proHect only


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1. 2imiting factors

As have already mentioned that the loan operation department

is that vital most departments in this loaning procedure. 'o if this

department can eciently, the proHect is supposed to run successfully

and the loaning amount is supposed to be recovered. But for thissmooth recovery, many other things need to be modi&ed in time of

loan sanctioning. As per my concern, as observed there are some

limitation in loan operation department.

B'C) questionnaire form this is a lengthy form and if a client

comes for loan this questioner form &lling become hard for him and

takes a lot of time. he bank%s standard questionnaire form is of !4

pages. 'o this form should be modi&ed and easy for the person &lling

it.

3uration of time for preparing appraisal report after submitting

and managing all the documents and papers the loan operation

department takes almost three months and in some cases, it cross

three months and takes = or 4 months. he problem is that within this

time period, proHect which was viable for that time. Become obsolete

getting loan and starting business. 8articularly mentionable is the

computer software business or computer accessories business. n this

business new products are launched in the market within a short

period of time, in some cases in one month two or three new products

enter the market. n such case this long run procedure kills the viability

of the proHect.

Jack of proper updated technology, this is the age of information

technology ;< all the activities are electronised and computerized.

54


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". 'ecommendations

'ince loan operation department is the crucial and most important

department because if this department passes any loan, theactivity of all other department starts. 'o this department should

be made out of political violence, because all other control

obHectives can be implemented and monitored in front of political

telephone calls surrenders every rule and policy. f this department

could be made separate in performing its Hob, give this department

in private sector, and is paid as per its performance, a good result

may come out and the rate of sickness of proHects will go down.

he loan operation department should be made fully computerized

and each of the engineers should have a personal computer to do

their Hob promptly and make decision accurately.

'ome more technicians and e1pert engineer should be there to

Hudge proHect viability accurately.

)resh and young generation employee should be appointed in this

department who are familiar with the latest technology and

literacy.

A regular training program should be launched for each employee

from the training department so that the employees keep

themselves updated with any change occurred in the &eld of

innovation, technology and edge.

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A proper and prompts co-ordination and cooperation environment

should be launched so that they work as a team and make the

appraisal report promptly to prevent the proHect to be obsolete.

he B'C) from should be more concise and easy for the client to

&ll it up. A sample of questionnaire is given to the anne1ure.

6. Conclusion

believe and hope that this report will o2er a number of bene&ts

to improve and update the loan sanction procedure for its smooth

operation and will cooperate in redesigning the system and

atmosphere of the department. f a small portion of sickness of the

proHects is reduced it would be a great bene&t to the bark as well as to

the whole nation. put here some recommendations, if they make a

look on the recommendations it would help in selecting appropriate,

socially contributable and more employment opportunity creatable

proHects in true sense. f this report can improve the e1isting condition

of sanctioning procedure, and is implemented, my little initiatives will

get a breathed satisfaction.

BBJ6GA8FM

Joan classi&cation manual

B'B rder

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7anuals

Annual Geports

98roHects: V 8rasanna ?handra

9)inancial 7anagement:- 8 I Nain 0 7 M Ihan

ral 3iscussions

able and contents>

ame of the topic pageno>

Background of the banking sector in Bangladesh!

Background of the study (

nstitutional overview K

A short brief on departments of B'B!+

Joan sanction procedure !#

8roHect appraisal procedure of B'B*"

'teps in proHect appraisal *"

8rocessing of loan proposal ((

3i2erent aspects of proHect appraisal(+

3ocuments to be submitted after sanction of loan

+=

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