Internship Report

On
Credit Risk Management of Grameen Bank

Submitted To
Shah-Noor Rahman
(Assistant Professor)
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University

Submitted By
Md. Shakir Ahmed
ID: 163-11-5327
Major in Finance
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University

Submission Date:
 Letter of Transmittal
September

Shah-Noor Rahman
(Assistant Professor)
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University

Subject: Submission of Internship Report.

Dear Sir,

It is with great pleasure that I complete my internship application and prepare to submit my
application on "Credit Risk Management at Grameen Bank". As an instructor I have worked
on real estate loans & credit management at Grameen Bank. I have loved the best offices of
Grameen Bank, Headquarters, Mirpur Branch. I have tried my best to describe everything
that has happened while preparing my report.

I have enjoyed my entire career during my internship. This notice along with all necessary
information about the procedure is sent to you for your review. I sincerely hope you enjoy my
efforts.

Sincerely Yours,

.........................

Md. Shakir Ahmed

ID: 163-11-5327
Major in Finance
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University
 Acknowledgement

I would like to acknowledge the incredible grace and generosity of the Almighty Allah, the
greatest ruler of the world, who has made my declaration in in fact.

I would like to thank Shah-Noor Rahman, Assistant Professor, Department of Business

Administration, for his supervision, advice, guidance and support. In fact, it took me as my
mentor and encouragement to make me understand and make a report like this one. I
remember his involvement with good manners. I would also like to thank our Superintendent
Mr. Md. Shahinur Sobhan Manager Grameen Bank(Mirpur).

I am sincerely grateful to the Department of Business Administration and all the staff of the
department for their ongoing service and behavioral supervision and to the many people on
the list that I have not met. Speaking of which, I thank everyone.
 Executive Summary
The internship report is based on the credit risk management procedures of Grameen Bank.
At the beginning of the report is about coverage, history, purpose, methodology, restricted
discussion. The main purpose of this report is to present the risk factors of the credit risk
business of Grameen Bank. The first place of information is Interviews with administrators
and staff and experience at different tables. The second article is compiled from annual
publications, different texts and various websites. The benefits of this report are limited to
managing the risks against the business of Grameen Bank. Despite some limitations such as
not having enough information, not having the necessary skills, I tried my best to make these
reports as efficient as possible.

I have tried to illustrate the purpose of the report which is to illustrate the role of low-income
companies, especially the role of Grameen bank in reducing poverty, improving the quality of
life. Rural and empowered women are expanding by lending money to the poor and
unprofitable by lending money without financial assistance and providing advice and
Counselling. I try my best to be responsible for the Grameen bank for managing education for
the poor and the homeless. I have tried to show how low-income banks work to achieve
national equity by regulating banks for the poor.

In this report, all the exposure to credit risk of Grameen Bank. is talked about. It includes a
credit assessment. Credit card for loans, Various bank loan information systems. This report
also addresses the credit management functions of the credit risk management
responsibilities. The report provides information on mortgage lending and advancement in
advance. It shows the monitor and control personal score. It explains how the bank manages
the scores and how low the finances are. This report describes the distribution of loans. The
repayment process means that a borrower will be fairly treated when the loan repayment is
not completed.
 Table of Contents

S.N Particulars Page

CHAPTER: 01 INTRODUCTION
1.1 Introduction
1.2 Origin of the Report
1.3 Objective of the Report
1.4 Methodology of the Report
1.5 Scope of the Report
1.6 Limitations of the Report
CHAPTER: 02 OVERVIEW OF GRAMEEN BANK
2.1 History of Grameen Bank
2.2 Mission
2.3 Vision
2.5 Services of grameen Bank
2.6 Branches of Grameen Bank
2.7 Organizational Structure of Grameen Bank
2.8 Principal Activities of Grameen Bank
2.9 SWOT Analysis of Grameen Bank
2.10 Specialties of Grameen Bank
2.11 Expansion of Credit Fund
CHAPTER: 03 MICRO CREDIT & RISK MANAGEMENT OF GRAMEEN BANK
3.1 Credit Loan Project of GB
3.2 Principle of Credit Management
3.3 Credit Policy
3.4 Credit Procedure
3.5 Credit Administrations
3.6 Credit Monitoring
3.7 Implication of the Rules of GB
3.8 Advantages of Comparison among CCS
3.9 Classified Loan
3.10 Recovery of Loan
CHAPTER: 04 FINDING, RECOMMENDATION & CONCLUSION
Finding
Recommendation
Conclusion
2.1 Introduction
This report focuses on micro Credit Risk Management of GRAMEEN BANK. Most of the
locals call it a rural country. The highest class people are people without land and assets less.
Bangladesh’s economy is dependent on urban development. GRAMEEN BANK is
committed to providing high quality services to consumers and thus contributing to the
growth of GDP in the country throughout promoting economic and social development,
improving poverty, raising the population with low-income groups and overall improving the
health of the country. Rau to complete a BBA degree, it is necessary to do a vocational
training. In this work, we can build our confidence in the work of life. Internships are an
important part of BBA degree; I started my job at GRAMEEN BANK, Head Office,
International Office, Mirpur-2, for a three month 'period. This report is based on my ideas as
well as theoretical knowledge about performance monitoring of Grameen Bank.

2.2 Origin of the Report

It’s said that without theory, practice is blind and that there is no practical theory. The work is
designed to bridge the gap between the theoretical knowledge and the actual application. The
main reason for this report is to learn about the risks of lowering the Bank's performance.
This information was prepared as a nominated bank in Bangladesh, known as Grameen Bank.
Notice available was prepared based on the data of this bank that was collected during the
operation. The notice is called "Grameen Bank Securities Regulatory Commission". No
experience can be achieved unless it is supported by ground conditions. What could be better
than theoretical knowledge, it is not complete no impact on the ground. The completion of
this is important for the study of Business Management knowledge of the ground as a key
project.

Internships are important for every BBA student because it helps him / her have a real life
experience. The bank is one of the major financial companies, so I chose Grameen Bank,
which is one of the leading private companies in Bangladesh. For this reason I have prepared
my worksheet on Managing Unbiased Financial Management at Grameen Bank. Over the
past few years Bangladesh has experienced rapid and significant changes in the way financial
companies operate. Not only in our country, but all over the world the reality of saving has
changed rapidly due to technological advances, globalization and deregulation. Grameen
Bank is a state-owned bank in Bangladesh. It offers significant support for borrowing and
investing in the economy because of Grameen Bank. Participated in all projects (from
industry sector to microfinance)

2.3 Objective of the Report

The main purpose of the report is to identify and measure the risk management of Grameen
bank, which includes the following specific objectives:

 To know the practices of micro credit structure of Grameen Bank.

 Identify the recovery process by the bank.
 To have a general idea about managing the micro Credit risks of this bank.
 To gain knowledge of credit related to the operation and management of this bank
 Carefully review the risk management process of the bank and to make
recommendations if needed.

2.4 Methodology of the Report

The Report information collected by two sources,

 Primary Sources
 Practical Knowledge
 Face to face conversation with employees
 Personal observation
 Desks in different sections, of the bank.

 Secondary Sources
 Annual report of the Bank
 Grameen Bank Website
 Previous report of online
 Books, Journal, Articles of Banking

2.5 Scope of the Report

This report is about Grameen Bank employees' choice. Reconstruction is the path of human
administration to an organization. There are many functions of human resources management
of an organization. Grameen Bank also has a business management approach that is different
from other banking companies when Grameen Bank does not operate in accordance with
bank rules. Thus, Grameen bank follows the process of credit risk management, which is an
important part of Grameen Bank's human rights management system. Hence this
announcement is intended for Grameen Bank employees, so the limitations of this notice are
only for the new entrants of Grameen Bank.

2.6 Limitations of the Report

There are some limitations that I encountered in preparing this report. Basically I have
encountered the difficulty of collecting data from many sources. Regarding secondary data, I
encountered the problem of anonymity of data stored from various sources. In preparing the
report, I encountered some challenges which were,
 Time limit for understanding the bank.
 No time to access internal data
 No law deals with data.
 Not enough staff know
 Not enough time to know all the actions.
 CHAPTER: 02
OVERVIEW OF GRAMEEN BANK
2.1 History of Grameen Bank

Muhammad Yunus was inspired during the 1974 Bangladesh famine to lend as little as US $
27 to a group of 42 families with a start-up income that they could afford to sell. of interest in
sentiment. [10] Yunus believed that increasing mortgage lending could boost trade and
alleviate rural poverty in Bangladesh.

Yunus developed the model of Grameen Bank through his research and experience. Grameen
Bank is Bengali for "Local" or "Local" Bank. It started microcredit as a research project in
conjunction with the College of Finance at Chittagong University in Bangladesh to test its
ability to provide credit and credit to the needy. . In 1976, Jobra and other towns near the
University of Chittagong became the first eligible districts to receive services from Grameen
Bank. To make it a success, the Bank Bank project was supported by the Bangladesh Bank,
extending in 1979 to the Tangail District (north of the city, Dhaka).The bank continued to
operate and its services extended to other cities in Bangladesh.

By the ordinance of Bangladesh on 2 October 1983, the project was approved and established
as an external bank. Financial partners Ron Grzywinski and Mary Houghton of ShoreBank, a
community-based construction company in Chicago, helped Yunus with the merger of the
bank as a fundraiser. of the Ford Foundation. The bank has been hit hard by the economic
downturn after creating a 1998 flood in Bangladesh, but it recovered the following year. At
the beginning of 2005, the bank lent more than US $ 4.7 billion and in 2008, US $ 7.6 billion
to the poor.

In 2011, the Bangladeshi government forced Yunus out of Grameen Bank, saying that at the
age of 72, it was the last year of the job ban. As of 2017, the Finance Company had up to
2,600 offices and nine million borrowers, with loan repayments of 99.6%. 97% of lenders are
women. The Bank operates in 97% of the cities in Bangladesh. Its success has achieved
similar goals in more than 64 countries around the world, including the World Bank strategy
to provide Grameen-type schemes.

Now Grameen Bank is expanding into rich countries as well. As of 2017, Grameen America
has 19 branches in ten US cities. Nearly 100,000 borrowers are all women.

2.2 Mission

The GRAMEEN Foundation's mission is to help the poor, especially the needy, to create a
world free of poverty.

 To bring prosperity to our family

 Renovation and work on new construction as soon as possible
 To grow vegetables all year round. We shall eat much of them and sell the surplus
  Plant as many seeds as possible
 Keep our children and environment clean
 Create opportunities for self-employment for the unemployed in Bangladesh

2.3 Vision

The GRAMEEN Foundation's vision is to help the poor, especially the needy, to create a
world with our suffering.

2.5 Services of Grameen Bank

2.6 Branches of Grameen Bank

2.7 Organizational Structure of Grameen Bank

2.8 Principal Activities of Grameen Bank

There are four principal of GB are-

 Hard Working
 Discipline Maintain
 Unity
 Courage

2.9 SWOT Analysis of Grameen Bank

 Strengths
 Winner Nobel Prize
 High payback rate
 Outstanding Market Share
 Women employment
 Community Development
 Solidarity Lending

 Weakness
 Short time money Supply
 Recovery System of Loan
 Jobs dissatisfaction
 Clash in rural Families
 Opposition from traditional Society
 Rural area people negative thought

 Opportunities
 Lack of awareness
 Banking consultancy service for poor
 Health, education and other service
  Unbanked & Untapped rural population

 Threats
 High levels of violence against women receive Grameen loans
 More problem & power insufficiency in orthodox families
 New entry into the market
 Local loans

2.10 Specialties of Grameen Bank

2.11 Expansion of Credit Fund