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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
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;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
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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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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.
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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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