1.

0 Introduction

Attainment of high economic growth is a fundamental principle of current economic policy. In

attaining this objective, banking sector plays an important role. Banking sector transfers resources
through deposit mobilization and provides credit to different business venture. The successful
governing of a bank business depends on how effectively the credit management recovered the
funds. Mainly bank is a commercial organization and commercial banks are profit-making
institution that collects deposits from the surplus unit of the society. As banks are profits earning
concern; they collect deposit at the lowest possible cost and provide loans & advance at higher
cost. The functions of commercial banks have changed as the need of the economy has changed.
National Credit & Commerce Bank Limited is a well-known commercial bank in our country.
The Bank is always ready to maintain the highest quality services by upgrading banking
technology prudence in manage and applying high standard of business ethics through its
established commitment and heritage.
In recent days, people are becoming more aware about the management of their resources. As the
banks do business by lending their depositors money, they are more responsible to manage their
credit portfolio smoothly. Banks reputation is a critical factor for its success and therefore bank
must follow appropriate guidelines, policies and relevant manuals regarding credit extension and
recovery. Bank provides varies sorts of facilities to its customer. A credit facility is of one of
them. NCCBL aims to become one of the leading banks in Bangladesh by prudence, fair and
providing quality of credit operations in the banking sectors. NCCBL intends to meet the needs of
their clients and enhance their profitability by providing best credit facilities. People are taking
loans to start different types of business as well as other purpose. NCCBL provides many types of
loan among them a large amount of profit come from Business. Bank provides this loan to those
customers who are doing business in different sector. Therefore, performance of business people
in their respective business is a major indicator to evaluate a customer for lending credit. The
usages of banking service for any type of financial activities are increasing day by day.

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1.1 Origin of the Report:

Internship is considered as a whole semester in BBA program of Institute of Business

Administration, Jahangirnagar University. During internship program, a student undergoes
practical learning process in an organization. It is a good blend of the theoretical and practical
knowledge. This internship program gives the students opportunity to get ourselves introduced to
the corporate world. It works as an ice breaking before they step into their working life.

1.2 Objectives of the study:

The broad objective of this report is to understand the performance of business loan consumer of
National Credit and Commerce Bank Ltd. Savar Branch.

Specific Objectives:

Prime objective of this report is to know about the banking system through observing the
activities of NCC Bank ltd, Savar Branch, Dhaka. This report is conducted to meet following
objectives:

1. To analyze policies, practices of business loan of NCC Bank Ltd.

2. To represent the procedures that bank follows for lending to the customers.

3. To identify present Scenario of Business loan of NCCBL, types of products of business

loan and the performance of business loan in NCCBL Savar branch.
4. To analyze the performance of consumers who took loan business loan from NCCBL,
Savar Branch.

1.3 Scope of the Study:

The report was prepared through extensive discussion with the employee of Savar Branch,
NCCBL. The main concern of the report was the consumer of Savar Branch, NCCBL. To
complete the survey all the respondents were the consumer of Savar Branch who has taken loan
from the bank and doing their business in Savar.

1.4 Methodology of the study:

In this report, both the primary and secondary sources of information have been used to prepare
the report.

1.4.1 Primary Sources:

1. Face to face interview of business loan consumers with semi-structured questionnaire.

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 2. In-depth discussion with the officers of the branch.
3. Practical work experience gained through

1.4.2 Secondary Sources:

1. Annual report of NCC Bank Ltd.

2. Different papers of NCC Bank Ltd.
3. Website of NCC Bank Ltd.
4. NCC Bank Training Books, Catalogs.
5. Relevant books, newspapers and Journals.

1.4.3 Data Analysis:

Type of research: Exploratory research.

Approach: Qualitative & quantitative.
Sampling Plan: The sampling plan includes the following things:
Sampling Frame: Business loan consumers of NCCBL (Savar Branch) are the target population
for the survey.
Sample Size: The total number of regular and irregular business loan consumers of NCCBL
Savar Branch is more than 60. However, considering the time constraint, the sample was taken
40(Cash credit-20, others-20) among the consumers.
Survey method: Semi-Structured questionnaire survey was used for this study.

1.5 Limitations of the study:

Despite all out co-ordination from the bank officials, I faced some limitation.
Due to some obligation and business secrecy banks are reluctant to provide data. For
this reason, the study limits only on the available published data and certain degree
of formal and informal interview.
Consumers do not want share their financial contribution.

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2.0 Literature Review

Page 4 of 33
 3.0 Overview of the Organization

National credit and commerce bank ltd bears a unique history of its own. The organization started
its journey in the financial sector of the country as an investment company back in 1985. The aim
of the company was to mobilize resources from within and invest them in such way so as to
develop countrys industrial and trade sector and playing a catalyst role in the formation of capital
market as well. Its membership with the browse helped the company largely in these regard. The
company operate up to 1992 with 16 branches and thereafter with the permission of the central
bank converted into a fully fledged private commercial bank in 1993 with paid up capital of
39.00 crore to serve the nation from a broader platform.
Since its inception NCC Bank Ltd. Has acquired commendable reputation by providing sincere,
personalized service to its customers in a technology based environment.
The bank has set up a new standard of financing in the industrial, trade and foreign exchange
business. Its various deposit & credit products have also attracted the clients both corporate and
individuals who feel comfort in doing business with the bank.
Within this short time, the bank has been successful in positioning itself as progressive and
dynamic financial institution in the country. This is now widely acclaimed by the business
community, from small to big merchant and conglomerates, including top rated corporate and
foreign investors, for modern and innovative ideas and financial solution.

Corporate Vision Corporate Mission Core Values

To become one of the
most adorable commercial
Bank in serving the Nation
as progressive and socially
responsible financial
institution by bringing
credit & commerce
together for increased
Shareholders value and
substantial growth
Accountability
Delivering excellent Commitment
financial service to our Confidentially
communities based on Integrity
strong customer Professionalism
relationship.
Respect for individual
Providing long lasting
solutions that combining Respect for nature
our cutting edge
technology, experience
and financial strength to
our clients and
stakeholders.
Creating a cohesive and
friendly environment
where customers and our
people can excel.

Figure -1: corporate vision, mission and core values

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3.1 Corporate Information at a Glance

Table- 01: NCC Bank at a glance

Name National Credit & Commerce Bank Limited
Known as NCCBL
Type Private
Category Commercial
Inception date 17 May,1993
Chairman Alhaz Md. Nurul Newaz
Vice Chairman Mr. A.S.M. Main Uddin Monem
Statutory Auditors ACNABIN
Chartered Accountants

Recognition On the occasion of 21st February 2007, a reception was given to

Language-Veteran Mr. Abdul Matin at Jatio Jadughar Auditorium.
The Bank Co-sponsored the reception according to Dr. Md. Yonus
on his receiving Nobel Peace Prize.
Total Branches Total 106 branches of NCC Bank including 8 SME branches.
Total Employee 2310
Total ATM 75
Head Office NCC BANK BHABAN
13/1-13/2, Toyenbee Circular Road, Motijheel C/A, Dhaka-1000,
Bangladesh.
Email: info@nccbank.com.bd
Web: www.nccbank.com.bd
Corporate slogan: With You, Always

3.2 Department of NCCBL

If the departments are not fitted for the particular works, there would be haphazard situation and
the performance of a particular department would not be measured. NCC Bank Ltd. does this
work very well. Different departments of NCCBL are as follows:

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 Human Resources Division
Personal Banking Division
Treasury Division
Operations Division
Computer and Information Technology Division
Credit Division
Finance & accounts Division
Financial Institution Division
Audit & Risk Management Division

3.3 Product and services of NCCBL

Loan Products:

Personal Loan
Cards:
Education loan
Car loan scheme Credit Cards
House building financing Debit Cards
House repairing and renovation loan
House improvement loan
Consumer finance scheme

Deposit Products:

Current A/C
Savings Bank deposit A/C
Special Notice Deposit A/C
Special savings scheme
Special Deposit Scheme
Premium Term Deposit A/C
Instant Earnings Term Deposit
Money Double program
Money Triple program
Youngster Account
Youngster maximus Account
Youngster Moneyplant Scheme

SME Banking:

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 Small business Loan
Lease finance
Working capital loan
Festival business Loan
Festival personal loan

Remittance:

Wage earnings welfare deposit pension scheme

Overseas employment Loan Scheme
Special Interest rate on Deposit and Loan.

Services:

Remittance service
Treasury service
Locker service
NCCBL Securities & Financial Service
NCCBL SureCash Mobile Financial Service

3.4 Types of Credit:

Credit may be classified reference to elements of time, nature of financing and provision base.
Based on elements of time, bank credit may be classified into three heads.

Table-02: Classification of Credit

Types of loan Loan products

Continuous
Cash Credit (Hypothecation), Cash Credit (Pledge), Secured
loan
overdraft(Financial obligation), secured overdraft (General)

Term Loan Project Loan, House building Loan, Transport Loan, Lease Finance

Demand Loan Loan against imported merchandise, Loan against trust receipt, Payment
against documents, IBP & FBP (Inland &Foreign Bills Purchased), Forced
Loan, Packing Credit, Foreign Documentary Bills Purchased (FDBP),Local
Documentary Bills Purchased (LDBP/IDBP), Inland Bill Purchased (IBP),

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 Foreign Bill Purchased (FBP)

3.5 Hierarchy of NCC Bank Ltd

Chairman

Vice Chairman

Board of Directors

Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

SVP (Board of SVP (HRD) SVP (Credit SVP (Corporate SVP

Secretary) Division) Banking (Establishment)
Structure)

Vice President

Senior Assistant Vice President (SAVP)

Assistant Vice President (AVP)

SAVP

Senior Principal Officer (PO)

Principal Office (PO)

Executive Officer (EO)

Senior Officer

Officer

Junior Officer

Assistant Officer

Figure-02: Hierarchy of NCCBL

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3.6 NCCBL Savar Branch Organogram:

Cash
Section

Account Opening
Section
General Banking
Department
NCCBL: Savar
Clearing Section
Branch
Loan & Advance
Local Remittance
Department
Remittance
Section
Foreign
Remittance

Figure-03: Present programs of the organization run by NCCBL Savar Branch

3.7 SWOT Analysis of NCCBL

Strength Weakness
Strong corporate identity More innovative product must be offered.
Distinct operating operating procedure and Employee are not technically efficient
distinct schedule The ATM coverage provided by NCCBL is
Strong employee bonding and belongings very limited.
Eficientperformance&SWIFT membership. Lack of employees training facility

Modern equipment & technology

Opportunity Threat

Distinct operation procedures Upcoming banks & Default culture

Country wide network Similar products are offered by other banks
Experienced manager Industrial downward trend due to recession,
Huge population inflation & unemployment.

Figure-04: SWOT analysis of NCCBL

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 4.0 Project Part

4.1 Overview of Business Loan (NCCBL Savar Branch)

Following types of loan products are classified as Business Loan by NCCBL

Cash Credit-(CC)
Secured Over Draft (General)- SOD(G)
Festival Small Business Loan- FSBL
Short Term Loan- STL
Small Business Loan Scheme- SBL
Local Documentary Bill Purchased- LDP

4.1.1 Cash Credit (CC)

Cash credit is an arrangement by which a banker allows his customer to borrow up to a certain
limit. This is a permanent arrangement and the customer need not to draw the sanction amount at
the time but draw the amount as and when required.

Cash Credit Hypothecation:

In short describes hypothecation as a Charge against property for an amount of debt where
neither ownership nor possession is passed to the creditor. Cash credit is sometimes allowed
against hypothecation of goods. In the case of CC (Hypo), the ownership and possession of the
goods remain with the borrower. By virtue of the hypothecation agreement, the bank can take the
possession of the goods hypothecation, if the borrower-defaults bankers are in that case, entitled
to take legal action against the debtor not only for the debt but also for breach of trust. The letter
of hypothecation creates an equitable and not a regal charge on the stocks.

Cash Credit Pledge:

Pledge is the bailment of goods as security for payment of debt or performance of the promise.
That means the delivery of goods by one person to another for some purpose, under a contract that
goods shall, when the purpose is according, be returned or otherwise disposed of according to the

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directions of the person delivering them. In case of pledge, possession of goods is transferred to
the bank. These goods work as mortgage. The bank possesses the lock and key of the go-down.

4.1.2 Secured Overdraft (G)

This loan is granted against the work order of government departments, corporations autonomous
bodies and reputed multinational private organization. To arrive at logical decision, the clients
managerial capability, equity strength, nature of scheduled work is to be judged. Disbursement is
made after completion of documentation formalities, besides usual charge documents like a
notarized irrevocable power of attorney to collect the bills from the concerned authority and a
letter from the concerned authority confirming direct payment to the bank. The work is strictly
monitored to review the progress at each interval.

4.1.3 Festival Loan:

This type of loan usually offers the shop owners who want capital for in the eve of any festivals.
The repay period is three month from when the loan sanction. This loan scheme is newly
introduced in National Credit and Commerce Bank Limited.

4.1.4 Small Business Loan Scheme

Loan is given to hold on the continuing business activities of an existing business. This loan is
offered to the small and promising entrepreneurs to meet their capital requirement and enable
them to operate and expand their business purposely. It is approved against collateral and
estimation of the revenue generation of the project for which the loan is sanctioned. The range of
this type of loan is one to eight lac taka. Loan repayment period is maximum 3 years.

4.1.5 Short Term Loan

Short-term loan usually offers to them who runs small business to meet their requirement and
enable them to operate and expand their business purposely. It is also approved by collateral and
estimation of the revenue generation of the project for which the loan is sanctioned. There is no
limit of credit amount and the repayment of credit is one year.

4.1.6 Loan Documentary Bill Purchase (LDBP)

The loan is made against documents representing sell of goods to local export oriented industries,
which are deemed as exports and which are dominated in local currency/foreign currency. The

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bill of exchange is held as the primary security. The client submits the bill and the bank discounts
it. This temporarily liability is adjustable from the proceeds off the bill.

4.2 Business Loan Product Feature

Table-03: Features of Business Loan products

Rate of Amount limit Maturity Target group No. of
Product
interest (Max/Min period clients
Cash credit 13.50% Depends on 1 year Manufacturer, 40
perspectives revolving Merchandiser,
Traders
SOD G 13.50% Depends on 1 year Business or traders 4
perspectives revolving
FSBL 15% 1 to 5lac 3 months Small business or 5
new business
SBL 15% 1 to 8lac 3 years Small business or 8
traders
STL 14.50% Depends on 1 year Business/ projects 4
perspectives
LDBP 12% Depends on 6 months Business / projects 5
perspectives

4.3 General System & Procedure Related To Credit:

To grant loan is one of the most important functions of a bank. The strength of bank depends
considerably on the quality of its loan and proportion of bearing to the total deposits. Traditionally
bank has been following three basic principle of lending in different credit schemes; these are
safety, liquidity and profitability. Another determination but not principle, the bank also consider
humanity where bank always looks for true entrepreneur who can really support society by
establishing own-self. Confidence in the borrower is the basis of secured loan. The confidence is
judged by five (5 C's) considerations-

Character: It denotes borrower's reliability. This indicates borrower's honesty

and willingness to repay the borrowed money as per repayment schedule.

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 Capacity: Borrower's ability of
doing business and generating Request for credit from the
sufficient funds there from, that is, client to a branch

credit worthiness.
Capital: Borrower's contribution in Credit application form filled up
by customer & collection of
the business. Financial strength to document
cover business risk.
Condition: General business Scrutinizing the documents
related to client
conditions.
Collateral: Borrower's ability to
produce additional security to cover Analyzing the information about
client
borrowed money.

Preparing the proposal

4.4 Loan Approval Procedure

The proposal goes to the credit

The purpose of this procedure is to monitor committee of Head Office
lending performance and to identify potential
delinquent credits. The basis of review and
Sanctioning the credit
classification are risk of the transaction,
repayment record of the borrower, collateral
conditions, supporting information and
Informing the client, loan
documentations and the degree of conformity to disbursement
bank facilities. The responsibilities for review
and classification of credit facilities start at Credit monitoring & Review,
branch level and finally end at the Head Office. Loan Recovery

Regardless of any formalized times for facility to

be reviewed and formally classified by the
branch manager or the concerned credit officer.

4.5 Important Checklist of Documents Favoring A/C:

Proposal in prescribed format

Clients application
Copy of valid Trade License

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 Copy of NID card of proprietor
Copy of tin certificate
Figure-05: Loan approval procedure
Transaction statistics of account
Net worth (Business & individual)
Financial statement of business
Working capital assessment
Compliance of CRG
Additional information under SME finance
Branch credit & deposit position
Additional information as per instruction
Issuance of certificate as per instruction
Branch valuation assessment

4.6 Credit Risk Analysis:

The objective of credit risk analysis is to look at both the borrower and the lending facility being
proposed and to assign a risk rating. The risk rating is derived by estimating the probability of
default by the borrower at a given confidence level over the life of the facility, and by estimating
the amount of loss that the lender (bank) would suffer in the event of default. In Bank there are
five type of risk analysis is done. They are-

Financial risk
Business risk
Security risk
Management risk
Relationship risk

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 5.0 Analysis & Findings

5.1 Financial Data analysis of Business Loan

From previous 5 years banks report interest income and profit of business loan is shown below
by creating different charts, graphs etc.

5.1.1 Interest Income from Business Loan Savar Branch (Year 2012-2016)

Findings: Interest income on business loan of NCCBL is increasing year by year. In 2012 interest
income on business loan was TK. 45.25 million. It was increased to TK.125.1 million in 2015 and
slightly decreased from 2015 to 2016.

Interest income (amount in million) BDT

140
120
100
Axis Title

80
60
40
20
0
2012 2013 2014 2015 2016
Interest income 45.25 52.4 83.3 125.1 124
Figure-06: Interest income of business loan

5.1.2 Total Profit from Business Loan (Year 2012-2016)

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 Total Profit of business loan
14
12
10

Axis Title
8
6
4
2
0
2012 2013 2014 2015 2016
profit 6.7875 7.86 11.2825 12.8902 12.5592

Figure-07: Total Profit on Business Loan

Findings: Graph shows the performance of NCCBL Savar branch on business loan over last 5
years. From the figure, it can be observed that the profit on business loan increased year by year.
Then the profit reduced a bit in 2016 compared to 2015.

Table-04: Product wise Business loan profit (Year2012-2016)

(Amount in million)BDT
Products 2012 2013 2014 2015 2016

CC 6.00 7.50 10.80 11.07 10.80

SOD-G - - - 0.0432 0.0432

FSBL 0.0375 0.12 0.015 0.15 0.105
SML 0.30 0.09 0.105 0.705 0.375
STL 0.45 0.15 0.3625 0.841 1.044
LDBP - - - 0.081 0.192
Total Profit 6.7875 7.86 11.2825 12.8902 12.5592
% of cc of total 88% 95% 95% 85% 86%
profit
%of other loan 12% 5% 5% 15% 14%
products

Findings: From the graph, it has been shown that a large portion of profit on business loan comes
from cash credit than other loan products. In the year of 2012, 88% profit comes from cash credit
and in the year of 2016, 86% profit comes from cash credit. It means that cash credit is more
profitable than other loan products (SOD-G, FSBL, SBL, STL, and LDBP).

5.1.3 Performance of Cash Credit:

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 cc
10.8 10.8

11.07

7.5
6

2012 2013 2014 2015 2016

Figure-09: Profit on Cash Credit (Year2012-2016)

Findings: Total cash credit of NCCBL also increasing year by year. In 2012, the total cash credit
was TK. 6 million. It has increased to TK. 10.8 million in 2016. From the graph, it is seen that
the growth of cc is a little bit higher in 2015, which was TK. 11.07 million.

The overall performance on Business Loan of NCCBL Savar Branch is increasing year by year.
Highest profit on business loan came from the year 2015, which was TK. 12.89 million. And the
largest portion of profit comes from Cash Credit since the last 5 years. It has also found that SOD
(G) and LDBP loan products newly introduced from 2015 in NCCBL, Savar branch. In 2014,
only 5% profit came from other loan products but after introducing two new products of business
loan, SOD (G) and LDBP, the profit has increased to 10% in 2015 from the previous year.
Therefore, it can say that to increase profit from other loan products of business loan, NCCBL
Savar branch should focus on introducing new product to attract customer and thus they can earn
more profit on this sector.

5.2 Financial Performance of Business Loan Consumers

5.2.1 Profile of Business Loan Consumers

From the financial part of the bank, it is seen that cash credit of business loan is more profitable
than other business loan products (SOD-G, FSBL, SBL, STL, and LDP) in NCCBL Savar
Branch. The analysis of the survey was divided into three parts:

Business profile of Cash Credit consumers

Business profile of other consumers

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 Consumers business growth.

5.2.1.1 Business Profile of Cash Credit Consumers

5.2.1.1.1 Nature of Business of Cash Credit Consumers

Findings: From the survey it is found that 45% consumer of Cash credit run the retail business
while trading percentage is 30% and manufacturing only 20%.

5%
20%
Manufacturing
trading
45%
retailing
30% others

Figure-10: Nature of business

5.2.1.1.2 Experience of Consumers Relating Business

Findings: Business experience is a very important criterion for providing loan. Bank should
provide loan to those who are experienced so that there is less possibility of loan default. From the
graph, it is seen that most of the clients experience is in between 16 to 20 years and up to 20
years, which is good for providing loan.

30% 10% 5 to 10 years

15%
11 to15 years
16 to 20 years
45%
up to 20 years

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 Figure-11: Business experience of the consumers

5.2.1.1.3 Loan Amount of Cash Credit Consumers:

Findings: Among 20 respondents of cash credit consumers, 30% of respondent applied for the
loan amount of 36 to 40lac, 25%applied for the amount of 26 to 35lac, 20% applied for amount
limit of more than 40lac, 15% consumers applied for more than 16 to 25lac credit limit and only
10% applied for 5 to 15lac credit limit.

Table-04: CC Consumers Credit Limit

Credit Limit No of respondents Percentage

5-15lac 2 10%

16-25lac 3 15%

26-35lac 5 25%

36-40lac 6 30%

More than 40lac 4 20%

n= 20

5.2.1.1.4 Major Usage of Loan

From the responses obtained, it is observed that the loan is mostly used for purchasing inventory.
35% respondents agreed that the most use of this loan is for purchase inventory for their business.
Purchasing raw materials (30%) is the second most used purpose of the loan.

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 Uses of loan

15%
To expand business

Pay creditors 25%

35%
inventory purchase

Raw material purchase 30%

Figure-12: Survey Response on Usages of the Loan.

5.2.1.2 Business Profile of Other Consumers

5.2.1.2.1 Nature of Business

Findings: Among 20 respondents, it is found that 45% of consumers run retail business, while
30% are doing manufacturing business and 25% are doing trading business.

nature of business

manufacturing retailing trading

25% 30%

45%

Figure-13: Nature of Business

5.2.1.2.2 Experience of Consumers Relating Business

Findings: Business experience is an important factor for lending credit. From the graph, it is seen
that most of the consumers experience in their respective business is between 11-15years and 5-10
years.

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 40%

25% 25%

10%

5-10 years 11-15 years 16-20years more than 20

years

Figure-14: Consumers Business Experience

5.2.1.2.3 Credit Limit

Findings: Loan amount is decided based on the business turnover condition and collateral value
of the business loan consumer. From the table it is seen that most of the respondents (35%) credit
limit is 1 to 5lac, 20% respondents credit limit is 5 to 15lac,only 5% respondents credit limit is
26 to 35lac.

Table-05: Applied Loan Amount of Business Loan Consumers

No of respondents Percentage
Credit Limit
1-5lac 7 35%
5-15lac 4 20%
16-25lac 3 15%
26-35lac 1 5%
36-40lac 3 15%
More than 40lac 2 10%

5.2.1.2.4 Usage of Loan

Findings: Another survey was conducted from others business loan consumer is found that
consumers who are availing loan facility, 45% of them use this credit to purchase inventory for

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their business. 20% use credit to purchase raw materials and another 20% use credit to expand
their business. Also among them 15% use credit to pay to creditors.

business expansion 20%

pay creditors 15%

Inventory purchase 45%

raw material purchase 20%

Figure-15: Usages of Loan Amount

From the survey and analysis, it has found that consumers who took the business loan from
NCCBL Savar branch, most of them doing retail business. Among all business loan products, CC
consumers are more experienced than other consumers. It has also found that CC consumers took
more credit amount than other loan products consumers did. From this, it can be said NCCBL
give more priority for their safe lending to those customers whose business experience is more
than others. In addition, a reason behind for lower credit limit is loan repayment period, which is
not reasonable for other loan products (FSBL-3 months, LDBP- 6 months, STL- 1year, SBL-3
years). So NCCBL should increase their loan maturity period for these (FSBL, LDBP, STL, SBL)
loan products to attract potential customers.

Table-06: Indicators Highest Point of Survey

Indicators Cash Credit Other loan products
Nature of business Retailing (45%) Retailing (45%)
Experience in business 16 to 25 years 11 to 15 years
Credit limit 36-40lac 1-5lac
Uses of loan Inventory purchased Inventory purchased

5.2.2 Business performance of consumer

In this part the survey of total 40 respondents were conducted in order to show their business
performance. Performance was evaluated by the four indicators:
Number of employee
Expansion of business

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 Willingness to expand business in near future

5.2.2.1 Employee growth of the business:

Findings: 50% of respondent answered that the number of employee of their business has
increased after availing loan facility. Therefore, it can be said that there is a positive correlation
between availing loan facility and employment growth.

20%
50% increse

30% decrease
stable

Figure-16: Employee growth of business

5.2.2.2 Expansion of Business

Findings: 52% respondents answered that after availing loan facility they expand their business,
which means a growth of the business.

yes no

48%
52%

Figure-17: Expansion of business

5.2.2.3 Future Plan for Expanding Business

Findings: Among 40 respondents 55% consumers said that they have no plan to expand their
business in near future because most of them already expand their business , while they took the
loan amount.

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 yes
no 45%
55%

Figure-18: Willingness to Expand Business in near future

From this part, it has been concluded that after receiving business loan consumers positively avail
the loan facility. It has been found that most of the consumers increased their business, like-hire
new employee to the business. 50% respondents said that they have hired new employee to their
business. It has also found that after receiving many of the consumers of business loan extends
their business. In addition, 45% said that they would expand business in future, which indicate
that after availing loan facility there has a growth on consumers respective business.

5.3 Credit Satisfaction of Business Loan Consumers

Customers credit satisfaction is a very important factor for the banks to evaluate its performance.
Following graph shows the consumers credit satisfaction of the bank. To measure the satisfaction,
here consider four factors that bank can give importance to improve its quality. Factors are-
reasonable interest rate, reasonable loan tenure, reasonable credit limit, and service quality. One
more factor (suitable branch location) also measure to know that the banks decision regarding
choosing branch location is suitable for customers or not. The respondents were given 5 levels of
satisfaction point starting from Strongly Disagree (SD) to Strongly Agree (SA). Other points were
Disagree (D), Neutral (N) and Agree (A).

Table-07: Credit Satisfaction of Business Loan Consumers

SL. Statements SD DA N A SA Result of

No. evaluation
1 Interest of NCCBL is 17.5% 25% 15% 22.5% 20% DA
reasonable
2 Loan tenure is reasonable 12.5% 35% 10% 25% 22.5% DA
3 Loan limit is reasonable 0% 17.5% 7.5% 42.5% 32.5% Agree

4 Satisfactory service quality 5% 10% 7.5% 40% 37.5% Agree

5 Location of the branch is 0% 0% 7.5% 45% 47.5% SA
suitable

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Findings: 25% respondents disagreed with the statement that the interest rate of loan amount is
reasonable. In addition, 35% respondents disagreed with the statement that the loan tenure is
reasonable. Consumers are satisfied with the service quality of NCCBL, 42.5% respondent
claimed that the amount of credit is also in favor of them. Lastly, 47.5% respondents strongly
agreed that the location of the branch is perfectly chosen by the Head Office.

6.0 Recommendation & Conclusion

6.1 Recommendation

In the business loan portfolio of NCCBL Savar branch, cash credit has the largest share.
So the branch should give more emphasize on other loan products for their improvement
of total business loan portfolio.
NCCBLs target customers type or level is too high to maintain. As Bangladesh is a
developing country, so rather providing loan to an established business, bank should also
target young entrepreneur ( As bank gives more priority to that customers who are well
experienced)
More business loan products should be introduced.
Interest rate should be kept reasonable considering the expectation of consumers and to
attract more consumers under business loan.
NCCBL should increase its loan maturity period for some loan products.

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6.2 Conclusion:

Concisely, NCC Bank Ltd has its own unique identity in the commercial banking area of
Bangladesh. In the present situation, they are going well with their business by satisfying their
customers. They provide variety offers to their clients and always try to make their satisfied. Still
they have to improve some portions of their services. The recommendation part shows how they
can achieve the opportunity and how they can remove the threats from them. Consumer are more
or less satisfied with the present services of the bank now should think to Start new services and
take different types of marketing strategy to get more customers in this competition market of
banking.

References

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 Appendix

Annexure_01: Questionnaire

Dear Respondent

I am, a student of the Institute of Business Administration, Jahangirnagar University, conducting a

survey on the following issue: An Exploratory Study on the Performance of Business Loan
Consumer (NCCBL, Savar Branch). Your valuable response will help me in pursuing my
research. I hereby ensure you that all the information will be kept confidential and will be used for
academic purposes only.

1. Which Business loan have you taken from this bank?

o CC
o SOD-G
o Festival Small Business loan
o Small Business Loan
o Short Term loan
o Local documentary bill purchased

2. How much loan amount you took?

(a) 1- 5lac(b) 5-15lac

(c) 16-25lac (d) 26- 35lac
(e) 36-40lac (f) More than 40lac

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3. What is the nature of your business?

o Manufacturing
o Trading
o Retailing
o others

4. Your experience in business:

o 5-10 years
o 11-15 years
o 16-20 years
o More than 20 years

5. Major Usages of this loan:

o Raw material purchase

o Pay to creditors
o Inventory purchased
o Business expansion

6. Employee Growth

Indicators Before availing loan facility After availing loan facility

No. of Employee

7. Did you expand your business after availing loan facility?

o Yes
o No

8. Do you want to expand your business in near future?

o Yes
o No

[Please rate () your opinion about the following statements range from Strongly Disagree
to Strongly Agree]

SL. Statements Strongly Disagree Neither Agree Strongly

No. Disagree Agree nor Agree
Disagree

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 1 Do you think the loan interest
rate of NCC Bank is
reasonable-

2 Do you think the loan tenure is

enough for repayment of loan-

3 Do you think the loan limit is

reasonable-

4 NCC Banks service quality is

satisfactory -

5 Location of branch is suitable-

Thank You

Annexure_02: Survey Findings on Cash Credit Consumers

TE

No. of nature business credit limit use of Before after changes BE Future
consume of experience fund Ex. p.
r busines
s
Con1 MF 11 to 15 16-25lac raw MP 6 7 increase yes No

Con2 MF 16 to 20 26-35lac raw MP 5 8 increase yes no

Con3 MF 5 to 10 5-15lac PC 3 2 decrease no yes

Con4 MF 16 to 20 26-35lac raw MP 4 5 increase yes yes

Con5 Trading up to 20 36-40lac raw MP 6 7 increase yes no

Con6 Trading 16 to 20 16-25lac PC 7 5 decrease no no

Con7 Trading 16 to 20 36-40lac raw MP 5 6 decrease yes No

Con8 Trading 16 to 20 26-35lac BE 12 15 increase yes no

Con9 Trading up to 20 more than Inv. p 12 15 increase yes yes

40lac
Con10 Trading 11 to 15 16-25lac PC 3 3 decrease no yes

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Con11 retailin 16 to 20 more than Inv. P 5 5 stable yes yes
g 40lac
Con12 retailin 5 to 10 5-15lac PC 3 3 stable no yes
g
Con13 retailin 11 to 15 16-25lac raw MP 3 2 decrease no yes
g
Con14 retailin up to 20 36-40lac Inv. P 7 9 increase yes no
g
Con15 retailin 16 to 20 16-25lac Inv. P 1 1 stable no yes
g
Con16 retailin up to 20 26-35lac BE 3 5 increase yes no
g
Con17 retailin up to 20 16-25lac Inv. P 4 3 decrease No yes
g
Con18 Retailin 16 to 20 36-40lac Inv. P 2 stable No Yes
g 2
Con19 Trading up to 20 more than 4 increase yes no
40lac BE
3
Con20 others 16 to 20 26-35lac Inv. P 2 3 increase No No

Annexure_03: Survey Findings on Other Consumers

TE

consum nature business credit limit use of Befo afte changes BE Future
er of experience fund re r Ex. p.
busines
s
(SOD) retailing 11-15 years 16 to 25lac PC 3 4 increase no yes
G
(SOD) trading More than 20 5 to 15 lac Inv. p 3 3 stable no yes
G years
(SOD) trading 16-20 years more than BE 4 7 increase yes No
G 40lac
FSBL retailing 5-10 years 1 to 5 lac Inv. p 2 3 increase No yes

FSBL retailing 11- 15 years 1 to 5 lac Inv. p 3 2 decrease No yes

FSBL MF more than 20 1 to 5 lac raw MP 5 5 stable No yes

years
BL trading 16-20 years 1 to 5 lac PC 4 3 decrease No no

SML retailing 11- 15 years 1 to 5 lac Inv. p 3 5 increase no no

SML retailing 5-10 years 1 to 5 lac Inv. p 6 8 increase no yes

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SML trading 16-20 years 36 to40lac BE 3 5 increase yes no

SML retailing 11-15 years 1 to 5 lac Inv. p 4 3 decrease no yes

SML MF 16-20 years 5 to 15 lac raw MP 4 5 increase yes no

SML MF more than 20 5 to 15 lac raw MP 4 4 stable no yes

years
STL MF more than 20 more than raw MP 8 12 increase yes no
years 40lac
STL trading 16-20 years 16 to 25lac Inv. p 5 3 decrease no yes

STL MF 16-20 years 36 to40lac BE 4 7 increase yes yes

LDBP retailing 11-15 years 16 to 25lac Inv. p 3 3 stable no yes

LDBP MF more than 20 36 to40lac BE 2 4 increase yes no

years
LDBP retailing 16-20 years 26 to 35lac Inv. p 3 2 decrease yes no

LDBP retailing 5-10 years 5 to 15 lac PC 3 2 decrease no yes

Annexure_04: Consumers Credit Satisfaction

Interest rate is reasonable:

Statement Strongly disagree Neutral Agree Strongly Result of

Disagree Agree Evaluation

Frequency 7 10 6 9 8 Disagree

Percentage 17.5% 25% 15% 22.5% 20%

Loan tenure is reasonable

Statement SD DA Neutral agree SA Result of

Evaluation

Frequency 5 14 4 10 9 Disagree

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Percentage 12.5% 35% 10% 25% 22.5%

Amount limit is reasonable

Statement Strongly DA Neutral agree Strongly Result of

Disagree agree Evaluation

Frequency 0 7 3 17 13 Agree

Percentage 0% 17.5% 7.5% 42.5% 32.5%

Satisfactory service quality

Statement Strongly disagree Neutral agree Strongly Result of

disagree agree Evaluation

Frequency 2 4 3 16 15 Agree

Percentage 5% 10% 7.5% 40% 37.5%

Branch location is suitable

Statement Strongly disagree Neutral agree Strongly Result of

disagree agree Evaluation

Frequency 0 0 3 18 19 Strongly

Percentage 0% 0% 7.5% 45% 47.5% Agree

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