Internship Report

on
Credit Policy Management of The City Bank
Limited.

Supervised by:
Md. Hafez
Assistant Professor, School of Business
Ahsanullah Univeristy of Science and Technology

Submitted by:
Nazia Hossain Nafisa
ID: 180202111
Program: BBA
Major: Finance
Ahsanullah Univeristy of Science and Technology

Date of Submission: 24th August, 2023

 Executive Summary
City Bank Limited (CBL) is one of Bangladesh's oldest and most well-known banks. It was founded in
1983. Since the beginning of commercial banking in Bangladesh, it has been the most important part of the
country's economy and a major contributor.

“Credit Policy Management of the City Bank Limited" is the topic of my internship report. This is the
latest big thing in the banking industry in Bangladesh. Due to more competition between private and
government banks in Bangladesh, this issue of credit management has gotten a lot of attention. The main
goal of my report is to learn everything there is to know about how Credit Policy Management at City Bank
Limited works.

This report begins by examining The City Bank Limited's financial performance in Bangladesh's highly
competitive commercial banking sector. This report discusses their business operations, credit and
collections, and crisis management. This report details CBL's credit offerings and credit risk.

I discussed CBL's credit facilities for retail, corporate, and SME businesses in this report. I focused on
CBL's retail loans due to study constraints. Retail stores offer home, auto, personal, and secured loans. I
showed CBL retail loan performance, total outstanding loan amount, total NPL amount, and loan
performance by segment. I then explained how CBL handles credit risk since most customers have some.
After discussing all the parts, I've reached some conclusions and issues they face when managing customer
credit risk. I found issues like a rigid credit assessment and risk grading process, and others that affect the
bank's credit risk management. I have made some suggestions based on the report's findings and problems.

If the City Bank Limited can turn its problems into opportunities, they will be able to handle their credit
risk easily and well.

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 Acknowledgements
I want to sincerely thank everyone who offered their assistance in developing my internship report. They
have always encouraged me, offered me counsel, and had faith in me, and I want to express my gratitude
for that.

My sincere gratitude goes to my honorable faculty Mr. Md. Hafez, Assistant Professor, School of Business,
Ahsanullah University of Science and Technology, for his guidance regarding this internship report.
Without his help and guidance, I would not have been able to complete the report completely as his
information and suggestions were integral to my report.

I would also like to thank my supervisors at City Bank Limited for guiding me through this internship and
teaching me a lot of new things and I gained a lot of experience from them. I want to express my gratitude
to Sanjay Kumar Das - Head of Organizational Development and HR Strategy, Sumaiya Binte Atique –
The Associate Manager of OD & HR Strategy, for their assistance and insightful knowledge.

The School of Business at Ahsanullah University o Science and Technology, helped me to get to this point,
where I'm going to successfully complete my bachelor's degree, and I want to thank them for their
assistance.

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 Table of Contents

Executive Summary.......................................................................................................................................2
Acknowledgements........................................................................................................................................3
List of Tables and Figures..............................................................................................................................4
Chapter-01....................................................................................................................................................6
Introduction.............................................................................................................................................…...7
Chapter-02…………………………………………………………………………………………………8
Company Profile............................................................................................................................................9
Vision, mission, objective etc........................................................................................................................9
Corporate Division/department etc...............................................................................................................10
Details of the product lines or services........................................................................................................11
Operation Details.........................................................................................................................................12
Chapter-03..................................................................................................................................................16
Industry Analysis........................................................................................................................................ 17
Finding peer group/ main competitor of City Bank.....................................................................................17
Credit Policy Management of City Bank ....................................................................................................18
The Growth rate of CBL Loans and Advances for the last 5 years..............................................................19
Geographical location-wise loans and advances/investments Inside Bangladesh........................................19
Credit Programs............................................................................................................................................20
Identification and Documentation of loan ...................................................................................................22
Possible Risks in Application & Mitigation Process....................................................................................22
Loan Proceeding...........................................................................................................................................23
Collection & Recovery ................................................................................................................................26
Recommendations........................................................................................................................................28
Chapter-04................................................................................................................................................. 29
Job responsibilities.......................................................................................................................................30
Functions of the department .......................................................................................................................31
Chapter-05................................................................................................................................................. 32
Conclusion & Implication..........................................................................................................................33
References...................................................................................................................................................34

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 List of Tables and Figures
Figure 1 Corporate Division
Figure 2 Account opening
Figure 3 Type of Account
Figure 4 Type of Bank
Figure 5 Growth rate of CBL Loans and Advances
Figure 6 Percentage of NPL
Figure 7 Credit to Deposit Ratio
Figure 8 Geographical location-wise loans and advances
Figure 9 Credit Programs
Figure 10 Identification and Documentation of retail loan
Figure 11 Identification and Documentation of SME loan
Figure 12 Flowchart of collection process
Figure 13 Flowchart of Recovery Process
Figure 14 Functions of the department

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Chapter-1: Introduction

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Introduction

With due respect, I would like to inform that, it is a great pleasure to present this internship report which
was assigned to me by Mr. Md. Hafez, Assistant Professor, School of Business, as a requirement for the
completion of BBA Program. I believe anyone can change their field after undergraduate to explore their
ability if this experience does not match their desired goals. So I have conducted my internship at City Bank
Limited, Head Office at Gulshan Avenue in HR department under Organization Development and HR
Strategy team. My line manager was Mr. Sanjoy Kumar Das, Head of OD and HR Strategy and my
supervisor was Sumaiya Binte Atique, the associate manager of OD & HR Strategy. My main job
responsibility was in culture and performance wing of the OD and HR Strategy team.

Objectives of the Study

• To have an overall idea about credit policy management

• An overall knowledge about the City Bank Limited
• To gain practical knowledge about OD and HR strategy team of HR department of the City Bank
Limited.

Methodology

To prepare the assigned project paper, I have collected necessary information from two types of sources as
follows:

1. Primary sources of information: I have collected primary information by working with business finance
department and MIS team, also my supervisor Sumaiya Binte Atique, Associate Manger of OD and HR
Strategy, helped me with different databases.

2. Secondary sources of information: I have also collected secondary information like annual reports,
company details etc.

Scope of the study

- Background o the City Bank Limited

- Different types of banking services
- Credit policy of the City Bank Limited
- Different departments of the bank and their work

Limitations of the study

The study is conducted with the objective of making a thorough study of credit risk policy. I have availed
myself of many facilities and faced some obstacles during my study. These obstacles may be termed as
limitation of the study. These limitations are as follows:

▪ The scheduled time span was not sufficient to cover all the information.

▪ As an intern, it was difficult for me to arrange all the databases from different teams and sources.

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Chapter- 02: Organizational Background

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Company Profile

City Bank Ltd. was founded in Bangladesh on March 14, 1983, under the Companies Act of 1913 as a
public limited company with limited liability, with the primary objective of conducting all types of banking
business. The bank is listed on both the Dhaka Stock Exchange and the Chittagong Stock Exchange
Limited. Since 1983, when it began operating as a conventional bank in the United States, it has
strengthened its position within the banking industry. The bank has been able to establish a strong presence
among its clients and the general public as a result of its enhanced services, economic contribution, and
increase in shareholder value. Currently, it is also engaged in Islamic banking. City Bank, one of the few
regional banks, does not use the conventional branch-based, decentralized, geographically managed
business model, nor does it benefit from it. Instead, the bank is located overseas.

1. Corporate & Investment Banking

2. Retail Banking (including Cards)

3. SME Banking &

4. Treasury & Market Risks.

A group of 12 self-motivated people who make up the City Bank Board shine.

The Board helps the bank succeed long-term. The Board directs management by setting and executing
strategy. City Bank Ltd. employs 4,539 people, has 132 branches, 1,183 agent banking outlets, 50,000+
merchants, and 2 airport lounges.

Vision, mission, objective etc.

Vision

• The Financial Supermarket with a Winning Culture Offering Enjoyable Experiences.

Mission

• Provide a broad range of goods and services to appeal to all client segments.
• Continuously challenge processes and platforms to increase effectiveness and efficiency.
• Become the "Employer of choice" by providing an environment where people thrive, and leaders are
developed.
• Encourage innovation and automation to ensure and improve service excellence.

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Values

1. Result Driven
2. Accountable & Transparent
3. Courageous & Respectful
4. Engaged & Inspired
5. Focused on Customer Delight

Objective

The City Bank Ltd. wants to build a strong capital base, make a good profit, and give shareholders a fair
dividend. To reach these goals, the bank looks for borrowers it can trust. They can get people to open bank
accounts by being smart and creative, and they can keep up their image by giving great customer service.
It strives for excellence in a world that is always changing. It thinks that its business and strategic plans will
do well in a competitive market because excellence is always a goal. Its goal is to make every customer
happy.

Corporate Division/department etc.

If the roles aren't set up with how they relate to each other in mind and aren't put in a specific branch, it
may be very hard to keep the framework under control. If it turned out that a certain department wasn't set
up to do a certain task, its performance wouldn't be measured anymore. City Bank Limited is very important
to get this work done. There are:

Figure 1 Corporate Division

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Details of the product lines or services

The Bank has a number of ways to make products and services that have to do with money. These products
are based on Monthly Savings Schemes, Consumer Credit Schemes, Lease Finance, and Personal Loans
for Women, and the Shop Finance Scheme. City Bank, the items are included with all of the services.

a) Credit Cards

American Express: From 2010 CBL has establishment the AMEX into the Bangladesh through 3
classifications and furthermore accessible in double cash mode.

1. Silver

2. Gold

3. Platinum

VISA: A worldwide and it issues in both Local Currency (Taka) and Foreign Currency (US Dollar) in 2
classifications and furthermore accessible in double cash mode.

1. Silver

2. Gold

b) Debit Cards or ATM Cards

Master Card: CBL issued the master card as default card for any account holder, so there for it has no
particular classes as contrast with charge cards.

VISA Electron: This is likewise others plastic money issued by the CBL with some uncommon benefits.
As of late this VISA electron is limited by CBL.

c) Special Cards

City Maxx American Express Card: It's an absolutely a particular card which can be use as American
Express yet as debt card framework.

d) Retail Banking Service

General account management, such as bank and student accounts. Retail preparing also offers Deposits,
Savings, RMG Accounts, and other Schemes. Consumer loans, education loans, health loans, etc.

e) SME Banking Service

CBL have extensive variety of SME saving money benefits through 3 singular wings.

• Medium Segment SME Service.

• Small Segment SME Service.

• Agro SME Service.

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f) Wholesale Banking Service

CBL additionally offered extensive variety of administrations under the discount keeping money benefit,
those are characterize as,

• Long term Finance

• Midterm Finance

• Structured Finance

• Cash Management

• Project Management

Despites every one of those administrations there are part of administrations likewise offered by CBL which
can be recorded as beneath,

• Priority Banking Service

• Corporate Banking Service

• City Touch (Advance Internet Banking)

• Trade Services (Foreign and Local)

g) CBL Subsidiaries

The City Bank restricted have endowments two distinctive individual business associations, those are

1. City Capital Resource

2. City Brokerage

Operation Details

City Bank Limited has all the components required for general fund maintenance, and this component is
staffed with highly competent account management information. Account opening, cheque book issuance,
record exchange, record closure, settlement, web-based saving money, clearing and bills, money and
information passage are just a few of the segments that make up this branch's general saving money.

There are 5major general banking operations, they are,

1. Account opening section.

2. Cash section.

3. Clearing and transferring section.

4. Remittance section.

5. Account opening section

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According to the law and practice, a client-investor relationship only develops after initial contact. Opening
a record is also the beginning of the contracts that solidify the relationship between a broker and a client.
This area therefore plays a crucial role in attracting customers and needs to be treated with extra care.

Figure 2 Account opening

Account opening process:

When customers open account, they have tobring some important documents, such as:

• Photocopy of national ID card/ driving license /passport

• Need nominee’s signature and photos

• Photos of account holders and nominees

• TIN-certificate

Type of Account: There are different types of accounts for customers, as like

Figure 3 Type of Account

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Cash section

Cash is the most liquid resource, and it must be carefully negotiated. Therefore, this division is given with
a very elevated mind. This office begins each day by trading out the vault. Through this division, all cash
receipts and payments are processed. The act of removing cash from the vault to begin an exchange is
known as the opening money adjust. The vault is kept in a highly secure location. The monitored money
officer and Branch Operation Manager hold the room's keys. The amount of initial deposit made into an
account. After a day's worth of transactions, the excess cash in the money counter is returned to the vault
and referred to as the end adjust. In this section, money is received and paid.

1. Cash Receipt: Through this segment, depositors deposit cash into their account using a deposit slip. This
division also receives funds from clients for opening pay arrangements, bank draughts, wire transfers, etc.
This division handles all monetary receipts for this bank.

2. Cash Payment: This section acknowledges the contributor's cheque for payment in actual cash. After
receiving a cheque, it is examined to determine whether it is substantial. The money officer evaluates the
amount both numerically and in words, the date and mark of the cheque, and so on. Finally, the approved
officer compares the mark on the cheque to the example mark and determines whether the adjustment in
the record is adequate.

Clearing Section

The clearing department is crucial to general banking. After posting, the deposit slips are separated, cleared
with the subsequent date, and sealed by Account Payee Credited. All of Jamuna Bank Limited's branches
are computerized and run on a computer online server in the clearing house. 2 types are houses they’re-

1. Same day clearing house

2. 1st clearing house

There are 2 two types clearing, those are-

1. Outward
2. Inward

Remittance

If a customer of a bank needs to move his savings or cash to another location within the country, he orshe
can do so through the settlement area of the bank, which is a section of the bank that is responsible for
keeping money managers focused on local settlements. Despite the fact that I am only in a temporary
position, the branch that I work in manages three different types of nearby settlements.

Corporate social responsibility

City Bank Limited CSR is a corporate self-regulation integrated into our business model of good business
for good society now and in the future. City Bank Limited's CSR focused on social and environmental
issues in all business operations and interactions with stakeholders like shareholders, customers, employees,

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suppliers, business partners, local communities, and other organizations. City Bank Limited's business
model has always included CSR. To maximize value, a company's strategy, operations, and management
include CSR. We care about our stakeholders, community, and environment, making us more responsible
and sustainable. Business financing grows businesses and the economy, which drives national development.

City Bank donates foods items to 100,000 poor people. City Bank has given food to the poor because of
the coronavirus. Eight banks across the country are giving 18-kilogram food bags with 10 kg of rice and
other necessities to 20,000 families. This project will help one hundred thousand people for a week. This
effort is being led by Chairman Aziz Al Kaiser and the
management team. To raise money, staff donated their one-day
salaries, and the bank's Board agreed to a large company
donation. MD Mashrur Arefin is getting help from a group of
bank employees. In Dhaka, Chattogram, Khulna, Sylhet,
Bogura, Noakhali, Tangail, and Cumilla, relief goods are being
given out by local government and law enforcement. Also, the
Uttaran Foundation, a charity started by Dhaka Range DIG
Habibur Rahman, is giving City Bank relief bags to 3000
families in 13 districts. DC Gulshan of the DMP is also sending City Bank relief bags to 2,000 middle-class
families on the outskirts of Gulshan, and DC Ramna is sending Hazaribag relief bags to 500 tannery worker
families.

City Bank donates ambulance to Chattogram Metropolitan Police:

City Bank gave an ambulance to the Chattogram Metropolitan Police (CMP) so that the people on the front
lines of the fight against the Corona Virus would have access to emergency medical care and transportation.
As part of the bank's CSR activities, the ambulance was given away thanks to Chairman Aziz Al Kaiser's
idea.At a simple ceremony at Chattogram Metropolitan Police Lines on Thursday, July 2, 2020, Kayesh
Chowdhury, Executive Vice President and Area Head
of Chattogram Corporate for City Bank, gave the
ambulance to Md. Mahbubur Rahman, Commissioner
of CMP. Amena Begum, who is the Additional Police
Commissioner for Finance and Administration,
Shyamal Kumar Nath, who is the Additional Police
Commissioner for Crime and Operations, and S.M.
Mostaque Ahamed Khan, who is the Additional
Police Commissioner for Traffic, were there, along
with other top officials from both organizations.

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Chapter-3: Analysis

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Industry Analysis

The Recent Scenario of Banking Sector:

Banking problems are getting worse. This is due to poor management, pervasive corruption, and political
and managerial interference with management. The prices of common goods are increasing, so individuals
are saving less. Instead, they are relying on the funds they had previously saved. Due to the dollar crisis,
the problems in this region are intensifying.

The majority of a bank's revenue comes from remittances, imports, and exports. But because the amount of
money coming in has decreased, the rate at which banks are opening letters of credit has slowed, and they
are now having trouble making money. Since nearly all international trade has ceased, there is little money
available. Even though the central bank claims that people's money is safe in banks, a large number of
people are withdrawing their funds. Almost all fraudulently obtained loans are currently in default.
Moreover, some of these loans were allegedly smuggled out of the country. Some individuals who have not
repaid their loans have been granted special permission to prevent the situation from worsening. Due to the
fact that the rate of inflation is greater than the rate of interest on deposits, the amount of money held in
banks is decreasing rather than increasing. Currently, the average return on bank deposits is 4.9%, whereas
inflation exceeds 8%.

Size of the Industry:

The banking industry in Bangladesh is mainly dominated by four types of banks: scheduled banks,
nonscheduled banks, foreign banks, and specialized banks. As of December 2020, there were 58 scheduled
banks and 34 non-scheduled banks operating in Bangladesh. Here is a breakdown of 62 Scheduled

Banks in each category:

Type of Bank Number of Banks

Foreign Commercial Banks 9

Specialized Banks 3
Conventional Private Commercial Banks 34

State-Owned Commercial Banks 6

Islami Shahriah Based Commercial Banks 8

Private Commercial Banks 43

Figure 4 Type of Bank

Bangladesh has a larger banking sector than many smaller economies with comparable levels of
development and per capita income. The most important aspect is the size of the financial system as a
whole, which accounts for approximately 26.54% of GDP. Bangladesh Bank is the nation's primary bank
regulator and central bank. The Bangladesh Bank is in charge of and monitors all 57 scheduled banks in
the country. The Bangladesh Bank has the authority to do so because of the Bangladesh Bank order from
1972 and the Bank Company Act from 1991. Grameen Bank was awarded the Nobel Peace Prize because

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it is a highly specialized microfinance institution that helped launch the microcredit revolution, significantly
reduced poverty in Bangladesh, and empowered women there.

Finding peer group/ main competitor of City Bank

City Bank is one of the best banks among all the private banks. In banking sector, it hassome competitors
in its segment. The competitors are:

1. Islami Bank Bangladesh Ltd.

2. Bank Asia Bank

3. IFIC Bank Ltd

4. AB Bank Ltd

The city bank limited has other rivals. City Bank faces stiff competition from other financial institutions.

Credit Policy Management of City Bank

City Bank's credit risk administration is independent of their business divisions, and credit selection
policies, procedures, and standards are consistent across all of their divisions. For all new credit offices and
significant changes to existing credit offices with any counterparty, City Bank uses expert credit
endorsement. They assign credit endorsement specialists based on their expertise, experience, and
education.

City Bank complies with the Bangladesh Bank's (BB) revised rules on credit risk management, which were
published on March 8, 2016, in an effort to improve the risk management culture in banks, establish
standards for the division of duties and responsibilities, and advance the banking industry. The Management
of City Bank Limited has revised its CPM in accordance with the most recent CRM Guideline of
Bangladesh Bank, which emphasizes the following information:

• Risk Appetite;

• Credit and Collateral Concentration;

• Credit Risk Mitigation Strategies;

• Board, Executive Committee and Credit Risk Management Responsibilities;

• Committee, Senior Management and Relationship Management;

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• Problem Loan Management;

• Risk-Based Pricing and Credit Administration;

The Growth rate of CBL Loans and Advances for the last 5 years

Figure 5 Growth rate of CBL Loans and Advances

Figure 6 Percentage of NPL

Figure 7 Credit to Deposit Ratio

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Geographical location-wise loans and advances/investments Inside Bangladesh

Figure 8 Geographical location-wise loans and advances

Credit Programs

City Bank Limited (CBL) offers numerous credit options to both small and large borrowers. Retail loans,
which are primarily used to meet the needs of individuals, are retail customers. Credits for corporations and
Small- and Medium-Sized Enterprises (SME) are categorized as large customers. These loans are structured
in a way that is suitable for anyone seeking a bank loan. The following types of CBL loan facilities exist:

Figure 9 Credit Programs

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Identification and Documentation of loan:
Retail loan

Figure 10 Identification and Documentation of retail loan

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SME loan

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Figure 11 Identification and Documentation of SME loan

Possible Risks in Application & Mitigation Process

Channel Risk

There are branches and direct sales teams that make up the sales channel. The direct marketing team is
responsible for 40% of sales, while the branch staff is responsible for the other 60%. It's important to note
that all direct sales forces are directly hired, and no sales staff is outsourced. This means that channel risk
is pretty low. But the risk is that people on the front lines might not know enough about the products or
how to identify customers. This could lead to selling products to the wrong customer segment. More than
67% of the value of the asset portfolio comes from Personal Loan (PL).

Fraud Risk

Any business that sells assets to the public has a risk of fraud. The most common ways fraud can happen
are.

❖ Transaction Fraud: For asset products, there is a risk of transaction fraud if someone fakes transactions
on their bank account to get a loan. In CBL, it is the job of the underwriters to find out about the transaction
pattern, the legitimacy of the banking transaction, etc.

❖ Application Fraud: It is always possible for someone to lie on an application by making fake documents.
The applicant's identity is checked by looking at his or her ID and other paperwork.

There is an agency called Contact Point Verification (CPV) that checks the applicant's home, office, and
phone numbers. Given how the market works now and how hard it is to run a business, it is not possible to
check that all documents are real. But CBL is thinking about validating the bank statement (the most
important and most often given proof of income), salary certificate, trade license, tax identification number
(TIN), rental deed, etc., through a CPV agent.

Loan Proceeding

Before a client at City Bank can get a credit office, it is important that the candidate meet the five Cs. Here
are the five Cs:

• Character: Willingness to pay back the advance.

• Capacity: The borrower's health and ability to use the money to make money and pay back the loan.

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• Capital – Quality of finances to spread the risk of lending.

• Conditions: The general state of business between two social events.

• Collateral: This means extra security.

The City Bank Loans and Advances Department gets money to lend out and invest. We are also familiar
with the process of approving an advance proposal, which starts with a party's request for a credit, the
collection of basic papers, data, and financial explanations, the examination of these data, the planning of
an advance proposal, the investigation and valuation of a security, a review, an analysis of the risk of a loan,
and the setting of terms and conditions. CBL has a set way of approving advances. Here is a list of them:

Step 1: If a customer wants approval from City Bank, they need to fill out an application close to the reports.
The part must have two copies of the same photo and a valid exchange permit. The person's application
must prove that they are sure. The security base can't be in a public area or on land that hasn't been claimed.
The physical security needs to be looked at, and a local motivator needs to be found. B.Ss Engineer has to
take care of it. A confidential report from each bank, an announcement, and a breakdown of the pay are
also needed.

Stage 2: The proposal, along with a letter of hypothecation and other forms of confirmation, must be sent
to the Head Office by the branch that is closest to it.

Stage 3: The Head Office confirms the support with a few terms and conditions, and if the party agrees, he
signs the duplicate copy.

Stage 4: A legal advisor will fill out the paperwork and send out a letter of approval to make the protection
board official.

Step 5: Once the charges are listed, the credit is made and the payment limit is set up by giving the social
event a cheque book. Stage 6: After installation, put stock out for sale by monthly social event. This needs
to be looked at right away. Change the plan every 45 days.

Collection & Recovery

Credit and Collection (C&C) has a separate team for collection and recovery so that they can do their jobs
well and help the business grow in a sustainable way. At each stage of delinquency, there is a separate,
approved "Retail Collections Manual" that explains how to follow the process. As stated in the Bank's
Policy, the Legal Division is in charge of all legal cases and takes care of them.

Collections

The Collections team helps with the day-to-day operations of managing delinquent portfolios. This process
is mostly about making sure that money is collected from a delinquent portfolio of retail loans and SMEs
PPG-based loans by assigning delinquent accounts to in-house collection executives for customer follow-
up, supervising collection executives, evaluating their performance, giving commissions and other
incentives to collectors, setting agency goals, and measuring their performance.

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Responsibilities

Approval level: The head of credit and collections has the power to approve the monthly Key Performance
Indicator (KPI), commission, waiver for loan settlement, stationery, etc. Recommended level: The head of
credit and collection is told by the head of credit and collection to approve monthly

KPI, commission, office supplies, etc. Also, the head of the collection team has the power to ask for a
waiver in the loan account and get a full and final settlement based on the amount of the waiver.

Purpose level: These units are led by four people who are called "unit heads." They want to be at the top of
the collection, as mentioned above.

Figure 12 Flowchart of collection process

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Recovery

This bank's Recovery Department attempts to recover funds from written-off customers. It also promotes a
culture of responsibility and accountability within the recovery department's management. The recovery
Standard Operating Procedure (SOP) applies to all activities to be performed for written off customers
across all products. It outlines the responsibilities of each employee in relation to the recovery management
policy, process, and procedure and aims to ensure uniformity in its application. It will also serve as an
educational and training reference tool.

Responsibilities

The core responsibility of the recovery department is to maximize recovery from the written off portfolio
in order to contribute banks’ profits.

Figure 13 Flowchart of Recovery Process

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Default loan precision

Although so mush precision, sometime bank fail to recover the loan from customer after given the loan. In
that situation CBL fellow some steps to recover it. Those steps sre given below:

Step 1: Conduct monthly customer observations. If a customer's business or financial situation is not
favorable, the bank should be alarmed. The bank reports that the customer may default on the loan.

Step 2: If a customer falls behind on payments, a BM officer will meet with the customer and attempt to
persuade him or her to pay on time.

Step 3: If the customer still does not pay, the office and BM will notify the head office. Then, the
headquarters will schedule a meeting with him in an attempt to persuade him.

Step 4: If the customer still doesn't pay, the Special Assessment Unit will try to get the customer to pay.

Step 5: If the customer still doesn't pay, the bank goes to court. Put the case under "Artho Rin Adalot" in
the bank. And if the judge rules in favor of the bank, the bank will take control of the mortgage asset.

And set up an auction, sell the asset, and try to make up as much of the loss as you can.

Recommendations

I would offer them some recommendations that can help to ensure proper credit risk management of the
bank in light of the brief time I spent with them and watching the entire credit risk management process.

Which are:

• Make a "Credit Manual" that is well-organized and easy to understand for both the people who want to
borrow money and the people who work at the CBL. This way, they can both learn about the bank's
credit rules.

• The number of people on the documentation team needs to grow, and they need to make sure they do
their jobs well and honestly. CBL should keep an eye on how well this unit does its work and make
sure it is perfect.

• Contact Point Verification (CPV) agents need to be held to high standards because they play a very
important role by physically checking the information of customers. The work that CPV agents do has
to be real and clear, or else the banks' evaluation process will be slowed down if they give false
evidence. So, CBL needs to pay close attention to how well the agents working for them do their jobs.

• Proper and structured training is needed for all CBL employees, no matter what department they work
in or what they do for a living. This will help them understand how all the functions of banking software
work. Thought that they could learn how everything works, which would help them work quickly and
confidently.

• The Source teams (DST, Branch, and Payroll) must send the Credit department the loan application
files, including all documents required to analyze the application. CBL should take this issue seriously
in order to reduce the likelihood of approving a loan without proper documentation.

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• To make it less likely that loan processing will be delayed, a strong, always-on network system should
be put in place. Plus, the use of all software has been better controlled so that it works better.

• Risk management tools should be kept up to date so that loans can be evaluated more accurately and
quickly. By using tools for risk management, the analysts can look over a loan file in detail and make
sure everything is right.

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Chapter-4: Internship job Responsibility

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Job responsibilities

It was a great privilege for me to work as an intern at City Bank limited. I started my internship in CBL on
9th July 2023. I was assigned to the head office in Gulshan. My line manager was Sanjoy Kumar Das, the
head of organizational development and HR strategy. And I was assigned to culture and performance win
of OD & HR Strategy. My work was correlated with the business finance and MIS department.

My supervisor was Sumaiya Binte Atique, the associate manager of OD & HR Strategy in the OD
department there are three wings, in the performance appraisal there were few wings. One of them is cultural
and another is PMP (performance management plan). I worked in these two wings. I work I have done in
these two wings was confidential. Coaching and Counseling: Sumaiya Apa works in the cultural
department.

In the cultural department there was Coaching Counseling feedback guidance and Living the Values and
Speak Up sessions. My main work was assisting arranging these sessions, where I handled all the backend
works, and the coaching counseling department with 8 different teams. Those are:

1. National sales Assets

2. National sales liabilities

3. Card sales

4. Employee banking

5. Two-wheeler

6. Home loans and sub-branch

7. Recovery

8. Credit and collections

Here I used to analyze the performance of the non-performer employees as a team base. The work was to
terminate the non-performers from the job. Coaching counseling was for DST (Direct sales team)
employees. If an employee becomes a non-performer of the month, he/she gets a CL (Counseling letter)
and CFG (Coaching feedback guidance form) to improve the performance. Under 6 months if one employee
gets 4 CFG he/she loses their job. So, I analyze the performance of 4th letter employees and make sure all
documentation and performance analysis is all okay before they get the final notice to lose their job.

How I used to analysis in Coaching and Counseling:

1. Firstly, I used to take the non-performer employees' information from the MIS department of that team.

2. Then I used to analyze the performance percentage they have sent is right or wrong as per the commission
structure and make it all okay.

3. Then I do vet with the business finance department. All the performance analysis is true or false we have
got from the MIS department.

4. After that I verify he/she has got at least 7 training or not.

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5. I do a sanity check of whether all the documents are okay or not or missing anything.

6. After all the analysis I make a summary of the Excel and send the data to my line manager and head of
the OD department. After that they make the final decision with Head of HR.

PMP (Performance Management Plan):

PMP is basically for regular employees. The employees get their work rating in the PMP. There are few
categories to get the rating. The employees who gets 3C, 4A, 4B and 4C goes to the PIP cycle to improve
their performance. PIP is a performance improvement plan. The PIP cycle time period is 3 months. The
employee who passes this cycle goes for regular PMP and the employee who fail in this cycle they need to
repeat the PIP cycle again. The employee who gets 3C, 4A, 4B and 4C again and again loses their job. So
basically, my job was to separate these employees according to their ratings and I need to make sure their
documents are all okay. I need to make sure the daily updates on PIP excel sheets. I need to contact with
the line managers of the employees who fails in this cycle and regularly collect their PIP & CFG
documentation. I really enjoyed working in this department because I have learned a lot about advance level
excel.

Living the Values and Speak Up Sessions:

The culture wing of the team arrange 4/5 sessions per month to brush up all the employees with the core
values of the bank. Minimum one Speak Up session to aware the employees about bulling and harassment
and teach them workplace etiquette, and 3/4 Values session to increase the productivity of the employees,
are arranged. To arrange these sessions my responsibility is to prepare all the backend files which includes
preparing participant list, phone number list, calendar booking, venue booking, food order, feedback form
and report for the trainer and etc. Also it is my responsibility to update all the database of these sessions.

Functions of the department

Figure 15 Functions of the department

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Chapter-05: Recommendations and Conclusion

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Conclusion & Implication

Overall, this internship was beneficial to me. I've learned new things, acquired new skills, and met many
new people. Some of my learning objectives were met, but others were not because of the circumstances. I
gained an understanding of how professionals operate. I taught them about the various jobs available in a
bank. My research taught me more about Credit Policy Management. There are still numerous things to
notice and improve.

The City Bank is now in a better position than it was a few years ago. But the bank could be in a better
position if it paid more attention to its credit-monitoring department. I've already talked about how to do
this. For example, keeping track of loans is a constant job that needs a team of experts. So, it is suggested
that The City Bank Ltd set up a separate loan-monitoring cell. This cell would be in charge of keeping an
eye on all of the bank's loans, paying special attention to the problem loans. Also, at the branch level, the
credit department must be able to collect the right information and analyses the financial statements quickly
and accurately. The City Bank Limited should make it easier to apply for loans and process personal credit
online. This would speed up the lending process. The bank should care more about the economy as a whole
than a lot of other financial institutions. The bank should change all of its procedures to make them easier
to use, more appealing, and more impressive.

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References

Guidelines of Credit Risk Management (2016, March 16), Retrieved from

https://www.bb.org.bd/mediaroom/circulars/brpd/mar082016brpd04.pdf

The City Bank: Making Sense of Money, Retrieved from

1655785817.3715644_CITYBANK 2021 Annual.pdf

https://www.thecitybank.com/vision.php

https://www.thecitybank.com/highlights.php

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