Md. Ruhul Islam ArifID: 50814058

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000. The Bank started its operation from 3rd June 2001. The Bank undertakes all types of banking transactions to support the development of trade and commerce of the country.

“Your partner for growth”

Particulars 2011 2010 2009 2008 2007

Deposit 70508.05 60673.56 42356.20 27307.94 20924.02

Loans & Advances

56611.79 49430.50 32287.66 21036.86 16617.45

Import 55907.00 61034.50 46685.00 30311.71 22191.84

Export 57929.40 41860.40 21407.00 18617.43 13990.33

Guarantee 5687.20 6620.00 2908.50 2648.40 2032.50

Remittance 3360.03 1594.11 2657.64 3165.00 2506.00

% NPLs 2.86 1.83 2.2 2.84 5.06

Profit after tax 1330.20 1066.38 923.12 476.43 89.11

Total Capital 7552.79 6350.02 3997.66 2444.34 1872.72

EPS (in Tk.) 3.65 2.92 5.67 3.62 0.73

To look at the types of credit offered by Jamuna Bank Limited & its overall Credit Management.

To critically evaluate the avenues of credit policies & guidelines followed by Jamuna Bank Limited.

To know the techniques of Credit Risk Management of Jamuna Bank Limited.

To evaluate the Credit performances of Jamuna Bank Limited.

The respondents of the population were limited in terms of size and composition. Since, I have conducted survey, there were lot of chances that all the respondents was reluctant to fill up the questionnaire.

Some of the data were collected from online sources. So there was every chance of some misrepresentations of information from the part of Bank.

The sample size was kept restricted within 50 only, which may fail to represent the actual scenario of the relationship between measured variables.

There are many other factors which can influence customers’ satisfaction regarding credit management practices. However, I have not considered those because of the simplicity of the research.

Research Design: Descriptive Research will be done to find out the present Credit Management Practices of Jamuna Bank Limited.

Population Size: The population of the research was all the Credit Customers of Jamuna Bank Limited.

Sample Size: 10 customers of each of the five branches of Jamuna Bank Limited were selected as a sample for this research.

Sampling Technique: Here Simple Random Sampling (SRS) technique is followed due to shortage of time which means that it was a probability sampling technique.

Scaling Technique: A 5-point Likert scale was used in the study in which the respondents were asked to indicate their degree of agreement with the statement.

Sampling Unit: The customers of five branches of Jamuna Bank Limited who come frequently in the Bank for different services. The branches are:Foreign Exchange Branch Dilkusha BranchDhanmondi Branch Mohakhali Branc

Gulshan Branch Data collection method Primary source: The data on the customer perception about credit

facility will be collected from the cooperative respondents through a structured questionnaire

Secondary source: The data has been collected from brochures, journal, magazine & annual report of Jamuna Bank Limited.

Sl. No.Customer Opinion on Jamuna Bank Limited

Sl. No.Customer Opinion on Jamuna Bank Limited

1. Quick disposal of loan proposal

11. Convenient branch location

2. Competitive intt. rate for loans & advances

12. Loan for all types of customers

3. Complicated loan documentation

13. Collateral security free lending

4. Risk based lending 14. Privacy of credit information

5. Provides prompt desk service

15. Trustworthy banker-customer relationship

6. Reduced bank charges 16. Fastest solution of credit complain

7. Enables electronic banking facilities

17. No hidden charge

8. Delivers secured lending service

18. Dependable credit counseling

9. Cordial reply to credit queries

19. Diversified credit product

10. Customized credit service to corporate client

20. Widest branch network for credit operation

On a five-point Likert scale, the maximum mean score obtained is 9.4 (SD = 17.20) for variable F2 i.e. for Competitive intt. rate for loans & advances. It means that most of the customer is satisfied with Jamuna Bank’s Competitive intt. rate for loans & advances policy among other variables. Next, they prioritized Reduced bank charges, Enables electronic banking facilities & No hidden charge where mean is 9.2 (SD=14.79), 9.2 (SD=14.79) & 9.2 (SD=17.30) respectively. Thereafter, Delivers secured lending service is rated by the customers measuring mean 9.00 (SD=12.73). The customers also opine that Jamuna Bank provides Dependable credit counseling where mean is 8.6 (SD=12.32).

Very Poor performance was observed regarding Collateral security free lending & Loan for all types of customers where mean is 4.2 (SD=6.80) & 4.6 (SD=4.22) only respectively.

Maximum response obtained for Trustworthy banker-customer relationship where mean is 7.8 (SD = 8.32) for variable F15. Next, they prioritized variable F 18 where mean is 7.8 (SD=9.18). It means that the customers are satisfied with Jamuna Bank’s Dependable credit counseling policy. Thereafter, Privacy of credit information & Diversified credit product are rated by the customers measuring mean 7.8 (SD=9.81) for both of them.

Very Poor performance was observed regarding Collateral security free lending for all types of customers & Customized credit service to corporate client where mean is 4 (SD=3.67) & 5.2 (SD=4.60) only respectively.

The maximum mean score obtained is 8.2 (SD = 11.80) for variable F15 i.e. for Trustworthy banker-customer relationship. It means that most of the customer is satisfied with Jamuna Bank’s policy of Trustworthy banker-customer relationship among other variables. Next, they prioritized Cordial reply to credit queries where mean is 8.0 (SD=8.92). Thereafter, Reduced bank charges is rated by the customers measuring mean 8.0 (SD=9.90). Delivers secured lending service also important choice of customers of Jamuna Bank Ltd. where mean is 7.8 (SD=8.32).

Collateral security free lending & Diversified credit product is not attracted as mean is 4.6 (SD=4.77) & 5.4 (SD=4.98) only respectively.

The maximum mean score obtained 8.0 (SD = 8.92) for variable F17 i.e. for No hidden charge. Next, they priority was found for Risk based lending where mean is 7.8 (SD=7.36).

Poor performance was observed regarding Collateral security free lending & Customized credit service to corporate client where mean is 4.4 (SD=3.85) & 4.8 (SD=3.36) only respectively.

F 15 variable is the maximum scorer here where mean is 8.2 (SD=11.80) which represents Trustworthy banker-customer relationship. The customers next prioritized no hidden charge where mean is 8.0 (SD=8.92). Thereafter, Privacy of credit information is rated by the customers measuring mean 8.0 (SD=8.92). The customers also opine that Jamuna Bank maintains a Cordial reply to credit queries where mean is 8.0 (SD=8.92).

Very Poor performance was observed regarding Collateral security free lending, Diversified credit product & Widest branch network for credit operation where mean is 4.8 (SD=5.76), 5.4 (SD=4.98) & 5.4 (SD=4.98) respectively.

On a five-point scale, the maximum mean score obtained is 40 (SD = 41.39) for variable F6 i.e. for Reduced bank charges. It means that most of the customer is satisfied with Jamuna Bank’s reduced bank charges policy among other variables. Next, they prioritized No hidden charge, Trustworthy banker-customer relationship & Dependable credit counseling where mean is 39.8 (SD=41.84), 39.8 (SD=52.60) & 39.2 (SD=41.31) respectively. Thereafter, Delivers secured lending service is rated by the customers measuring mean 39.00 (SD=39.34). The customers also opine that Jamuna Bank provides Privacy of credit information where mean is 38.6 (SD=48.47).

Very Poor performance was observed regarding Collateral security free lending & Widest branch network for credit operation where mean is 22.00 (SD=24.05) & 28.4 (SD=23.59) only respectively.

From the above observations it was found that most of customers liked the policy of the bank regarding reduced bank charges. Moreover, the clients are also satisfied with the bank’s policy on no hidden charge, trustworthy banker-customer relationship and dependable credit counseling. The customers also opine that Jamuna Bank provides privacy of credit information. But very Poor performance was observed regarding collateral security free lending and widest branch network for credit operation. However most of the customers (73%) give favorable opinion regarding credit management of Jamuna Bank Limited

The primary objectives of the Bank should be directed towards rendering best services to the clients by prompt granting /sanctioning of loans.

JBL should initiates different credit product with minimum interest rate according to changing/ diverse needs of clients by conducting huge research and study.

Complete analysis needed to know the bank customers to the highest possible extent, so that the offered banking products/ services match their needs and the sale is ensured.

Applying strategies in relation with the market, efficiently using Bank’s own resources in order to create new banking products/services and to diversify them according to the consumers’ wishes and expectations.

The Bank should adopt new technological equipment. The Bank should concentrate on improving their service quality and

efficiency. Bank should train its employee for better service providing.