Letter of Transmittal

Date: 12th February 2019

Mohammad Jahangir Alam

Associate Professor
Department of Finance & Banking
Govt. Titumir College, Dhaka

Subject: Submission of the Term paper on “Loan Recovery System of Premier Bank
Limited”.

Dear Sir,
I have the honor and pleasure to submit the term paper to you entitled by “Loan
Recovery System of Premier Bank Limited”. In the process of loan and recovery
system, I got many opportunities to gain insights about how a bank make an appropriate
balance between its return and risk involved with the loan portfolio and how a credit
appraisal process act as a tool, which helps the bank to predict the risk and return on the
proposed project for credit disbursement. To get a clear idea about credit appraisal
process I tried to identify the key factors of credit appraisal procedures. It also gives me
the opportunity to know the challenges faced by a bank and to overcome these
challenges.
I would like to thank you from the bottom of my heart for assigning me this term paper,
which has helped me in so many ways to learn so many things about the pos & cons of
banking sector. During the study I have taken helps from various references and web and
all the above your valuation guidelines helped me to do so. That is why I am grateful to
you for your continuous guidance in preparing the project. Finally, I also believe that this
term paper will satisfy you.

Sincerely yours,

………………………………
Md. Abubakkar Siddique
Reg. No:
Class Roll: 154
Session: 2015-2016
MBA Final Year
Department of Finance & Banking
Govt. Titumir College, Dhaka

i
 Acknowledgement

It is indeed a great pleasure and honor for me to have the opportunity to submit this term
paper on due time. And that is why; first of all I would like to offer my heartiest gratitude
to almighty Allah for keeping me in good health and giving me the strength to
accomplish the term paper.

Now, I would like thank to my honorable Mohammad Jahangir Alam, Associate

Professor, Department of Finance & Banking, Govt. Titumir College, Dhaka, for his
inspiring and enormous efforts at all stages with all the necessary support and guiding
throughout the term paper. Because of him, I got to know what is entrepreneurship, why
and how they are important for economic progress of a country, how to write a term
paper and so many things. He also helps me to find an entrepreneur for studying case.

I would also like to express gratitude to my university faculty members. They should be
remembered because they produced the platform of our knowledge. And I also thank all
of our classmates who gave their valuable information, suggestions and comments to
enrich the term paper.

Finally, I would like to say that, to err is human. As I have prepared this term paper from
my own experience that’s why I am ready to accept all my unwilling errors and omission
which belong to me.

……………………………
Md. Abubakkar Siddique
Reg. No:
Class Roll: 154
Session: 2015-2016
MBA Final Year
Department of Finance & Banking
Govt. Titumir College, Dhaka

ii
 Executive Summary

Loans or credits comprise the most important assets as well as the primary sources of
earning- ‘bread and butter’ for the banking institutions. On the other hand, loan/credit is
also the major source of risk for the bank management. A prudent bank management
should always try to make an appropriate balance between its return and risk involved
with the loan portfolio. Credit appraisal process is the tool, which helps the bank to
predict the risk and return on the proposed project for credit disbursement. To get a clear
idea about credit appraisal process I tried to know the key factors of credit appraisal
procedures. The study is mainly designed to know the different credit program of Premier
Bank and to know its performance. There are many institutions which play a vital role for
charging the social structure and for the economic development of our country. Premier
Bank is one of the most important financial institutions of them.

It is playing a vital role for economic development and employment generation by its
different credit program. As a Banking financial institution, it provides different Loan
and Advance (with micro credit) to poverty alleviation and income generation. It
provides different loan for development of our agriculture. For development of rural area,
it has different rural credit program. For businessman it provides cash credit (Hypo); and
cash credit (pledge) loan. For development of industry Premier Bank provides different
industrial loan and advances. The major credit program of Premier Bank are business
loan (cash, credit), Agricultural loan (crops loan), Palli loan, General loan, Secured
Overdraft, weavers cash credit, clean loan, SHBL, Packing credit, Loan against imported
merchandise, (LIM) General House Building loan (GHBL), Small Cottage, Handicraft
loan etc. Every year it is introducing new credit program. Although Premier Bank
provides loan and advances in different sector but its total classification loan is 9%
(2009), Bank has no provision deficit. According to CAMEL rating now Premier Bank is
not a Problem Bank.

iii
 Student’s Declaration

It is my pleasure to submit my Term paper on "Loan recovery system of Premier Bank

Ltd.". While preparing this term paper I have tried to gather as much information as
possible and together all the information pertains the term paper to enrich it.

I, the undersigned, hereby declare that the piece of work has been prepared by me under
the guidance Mohammad Jahangir Alam, Associate Professor, as a requirement for
the accomplishment of MBA final degree, Department of Finance & Banking, Govt.
Titumir College, Dhaka. It is also declared that, this term paper has been prepared for
academic purpose only and has not been/will not be submitted elsewhere for any other
purpose. This term paper is not free from limitations. There might have problems
regarding lacks and limitations in some aspects.
With best regards Truly Yours,

……………………………
Md. Abubakkar Siddique
Reg. No:
Class Roll: 154
Session: 2015-2016
MBA Final Year
Department of Finance & Banking
Govt. Titumir College, Dhaka

iv
 Supervisor’s Certification

This is to certify that the Term Paper on “Loan Recovery System of Premier Bank
Limited” in the bona fide record at the report is done by Md. Abubakkar Siddique
[Session: 2015-2016, Class roll- 154] as a partial fulfillment of MBA Final of Govt.
Titumir College, Dhaka, Department of Finance and Banking.

The Term Paper has been prepared under my guidance and is a record of the bona fide
work carried out successfully. This Term Paper was not submitted anywhere for any
other diploma or degree award.

I wish him success in the future.

…………………………………....
Mohammad Jahangir Alam
Associate Professor
Department of Finance & Banking
Govt. Titumir College, Dhaka