Theoretical Background of Lending System

There Is a meticulous proverb or so the trusts lending -If you owe the bank take problem. To be frank, lending to the line of credites, political sciences, and Individuals Is one of the most Important work banks and their closest competitors provide, and It Is the riskier. The question reason banks and many competitor lenders are issued charter of incorporation by government is to make loans to their customers. money boxs, thrift institutions, and other chartered lenders are expected to support their local immunities with an adequate contribute of credit for all legitimate personal credit line and consumer financial needs and to price that credit reasonably in line with competitively determined market interest rate. Indeed, making loans to fund consumptions and Investment spending Is the principal economic function of banks and their closest competitors. How well a lender performs In fulfilling the lending function has a great deal to do with the economic health of Its regio n, because loan support the growth of recent pipeline and bloods wealth the lenders trade territory.Despite all the benefits of lending for both the institutions that makes loan and for their customer, the lending process bears careful internecine and external monitoring at all the sentences. When a bank or other lender gets into heartrending financial trouble, its problems usually spring from loans that have become unconvertible due to mismanagement, illegal manipulation, misguided landing place policies or an unexpected economic downturn. No wonder, then, that when examiners appear at a bank or other regulated lending Institution they conduct a thorough review of its loan portfolio.Usually this Involves detailed reconditeness psychology of the documents and collateral for the largest loan, a review of a sample of small loans, and an evaluation of loan polices to ensure their unplumbed and prudent In order to protect the public funds. 1. 2 Background of National Credit & o ccupation Bank Ltd (UNCLE) National Credit and Commerce bank Limited bears a unique history of its own. The geological constitution started its Journey in the financial sector of the country as an investment caller-up back in 1985.The aim of the company was to mobile resources from within and invest them n 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 bourse helped the company to a great extent In this regard. The company operated up to 1992 with 16 branches and thereafter with the permission of the Central Bank converted In to a full-fledged scheduled private commercial bank In May 1993 with paid up capital TX. 39. 00 load to serve the nation from a broader platform.During providing sincere personalized service to its customers in a technology-based environment. The Bank has range up a new standard in financing in the Industrial, Trade and Foreign convert business. Its various deposit and credit products have also attracted the clients-both corporate and individuals who feel comfort in doing business with the Bank. The initial authorized capital of the Bank was TX. 75. 00 core and, paid-up capital TX. 19. 50, core at the time of conversion, which is now raised, to TX. 9. 00 cores. The present authorized capital is TX. 250. 00 core and paid up capital is TX. 60. 78 core. The sponsors of the new bank consisted of 26 (Twenty six) Members, who comprised the iris Board of Directors. The share price of the bank is currently being quoted at both Dacha and Chitchatting Bourse at an average price of TX. 320/- against per value of TX. 100/-. NC Bank based upon its commendable business performance for the year ended 2004, has meanwhile declared stock dividend at the rate of 30%.The Bank which started with 16 branches in 1993, has at present 41 (forty one) branches and 03 (three) Booths located in prime commercial areas of Dacha, Chitchatting, Sylphs, Fi ne, Chula, Josser and Ranging regularize Headquarters, out of which as many as 17 seventeen) are Authorized Dealer Branches, fully outfit for dealing in direct foreign exchange businesses. 1. 3 Scope of the Report This report has been ready through extensive discussion with my colleagues and with the clients.While preparing this report, I had a great opportunity to have an in depth knowledge of all the banking activities practiced by the NC Bank limited. It also helped me to acquire a first-hand perspective of a leading private bank in Bangladesh. This report covers overall areas of UNCLE. It can be grouped into the allowing pricks pipeline and historical background of UNCLE. Theoretical description about the products and services, general banking activities and departments of the bank.Analysis of the performance of UNCLE through some ratios. 1. 4 Objectives of the Report Primary Objectives The primary objectives of the report are to orient the real life nature of the bank and to measure the Job satisfaction of the staffs of the NC Bank Ltd, Mailbags branch, Dacha. Secondary Objectives To measure the level of Job satisfaction of employees with wonder to the company. To understand the components that trigger Job satisfaction of the staffs.To know the reasons behind the Job dissatisfaction of the employees from the findings. To Judge the level of Job satisfaction of employees on various parameters Working Conditions Rewards and other benefits Relationship with employees of company Job Security 1. 5 Methodology This report is made based on my theoretical and practical knowledge and as thrust report. National Credit Bank Limited is one of the well-known private commercial bank in Bangladesh. Its public reporting system is appreciable. Data are well managed.This arrangement is logical that helps easy industriousness of analytical tool. Two sources are used to collecting data. These are Primary descent Secondary Source Primary Source Face to face conversat ion with the bank officers and staffs make of different files of different section of the bank. Un-official discussion with bank official. Secondary Sources Annual report of NC Bank limited (2009-2013). Website. Literature summery. 1. 6 Limitations of the Study 1. Data Insufficiency 3. Lack of Updated Information.