Upload
sirquery
View
245
Download
0
Embed Size (px)
Citation preview
7/30/2019 Internship Presentation On Bank
1/12
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.
7/30/2019 Internship Presentation On Bank
2/12
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.
7/30/2019 Internship Presentation On Bank
3/12
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.
7/30/2019 Internship Presentation On Bank
4/12
Methodology
To collect the information used both
Primary Sources.
Secondary Sources.
7/30/2019 Internship Presentation On Bank
5/12
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
7/30/2019 Internship Presentation On Bank
6/12
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.
7/30/2019 Internship Presentation On Bank
7/12
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
7/30/2019 Internship Presentation On Bank
8/12
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.
7/30/2019 Internship Presentation On Bank
9/12
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.
7/30/2019 Internship Presentation On Bank
10/12
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.
7/30/2019 Internship Presentation On Bank
11/12
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
7/30/2019 Internship Presentation On Bank
12/12
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.