Loan processing, credit appraisal, follow – up & recovery procedure of IFIC Bank Limited

Abstract

Banking system of Bangladesh has through three phases of development Nationalization, Privatization and lastly Financial Sector Reform. IFIC Bank Limited has started its journey as a private commercial bank on June 24, 1983.As a part of my under graduation program, have completed my internship in this organization. Throughout the period of my internship, I hadbeen working in several departments. However, I was officially appointed to work in the creditdepartment. The report will reveal the background of the company, description of the loans,findings and recommendations based on the experience gathered. One of my major responsibilities was to assist the clients in opening new accounts. Alongside, my work was limited to Account opening section, Bills and clearing section. I had been given access to unique software, called MYSIS. I would be required to log in with username and password, and then search for specific clients. In one hand, I was assigned to provide account opening related information to the new customers. Every day, one of my responsibilities was to capture new or existing information related to account opening and then, disseminate those information to the clients who are interested to open accounts in IFIC BANK. On the other hand, I was assigned to keep a database of the information collected. Alongside, I prepared and fill up new and existing files for the department. The report is based on my critical observation while working in the credit division of IFIC Bank. Lending is one of the principal functions of the bank. Sound lending practice therefore, is very important for profitability and success of a bank. For the sake of sound lending, it is necessary to develop a sound policy and modern credit management techniques to ensure that loans/ advances are safe and the money will come back within the time set for repayment. For this purpose, proper and prior analysis of credit proposals is required to assess the risk. The comparative analysis shows that IFIC is in better position, but there are some obstacles it faces to sustain the position. However, the continuous improvement of the services will certainly place the bank in the best position in one decade.