October - 5 - 2023 Ekdm Final Last e

Internship Report
On
SME Banking Activities – Jamuna Bank Limited
Submitted To
Professor Bedar Uddin Ahmed
Principal
Dhaka City College
Supervised By
Ms. Fahmida Rawshan
Assistant Professor
Department of Business Administration
Dhaka City College
Submitted By
Mobasshira Haque
National University Registration No: 17501001053
National University Roll No: 2180715
Session: 2017-18
Major: Finance & Banking
Dhaka City College
Date of Submission: 18th October, 2023

Letter of Transmittal
18th October, 2023
Professor Bedar Uddin Ahmed
Principal
Dhaka City College
Dhanmondi, Dhaka-1205
Subject: Submission of the Internship Report on SME Banking Activities of Jamuna

Bank Limited
Sir,
I am very pleased to submit my internship report to you on “SME Banking Activities
– Jamuna Bank Limited” which is an essential requirement for the completion of
B.B.A program. This report is the result of the investigation that I conducted on Jamuna
Bank about SME banking activities. I have found the study to be quite interesting,
beneficial and knowledgeable and I have tried my level best to make the report
informative and effective. I have also tried to apply relevant concepts I have learned
during the entire BBA program. I am earnestly thankful to you for your guidance during
the preparation of this internship report. There may be some mistakes or lacking due to
some limitations. Therefore, I would be highly obliged if you kindly consider my
limitations.
I, therefore, pray and hope you would be kind enough to accept my internship report
and oblige thereby.
Sincerely yours,
__________________
Mobasshira Haque
NU Registration No: 17501001053
National University Roll No: 2180715
Academic Session: 2017-18
Major in Finance & Banking
Dhaka City College
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Acknowledgement
First of all, I am expressing my heartfelt gratitude to the Almighty Allah, the most
Merciful and the Benevolent, for his special kindness to give me the opportunity to
complete the Internship Report successfully and prepare Internship Report timely.
I would like to express my sincere gratitude to the authority of National University and
to our honorable Principal, Professor Bedar Uddin Ahmed, Dhaka City College and
Coordinator, Mr. A. N. M. Badsha Miah, Associate Professor, Department of Business
Administration, Dhaka City College, for providing me such a great opportunity. I also
give my sincere gratitude to my academic supervisor, Ms. Fahmida Rawshan,
Assistant Professor, Department of Business Administration, Dhaka City College, for
her continuous guidance, individual suggestions, continuous encouragement and
unfailing enthusiasm throughout the process of completion of this report.
I would like to extend my deepest appreciation to all my faculty members of

Department of Business Administration, Dhaka City College for their individual
contribution and co-operation in advancing this report and hereby completing my BBA
program successfully. I would also like to express my special thanks to the staffs of the
college for their excellent administrative supports.
I like to express my thanks and deepest gratitude to Jamuna Bank Limited for giving
me the opportunity to prepare my internship report in their organization.
Finally, I am very grateful to my entire family members especially to my father and
mother for their respective support and inspiration to accomplish my study.
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Certificate of Supervisor
This is to certify that, Mobasshira Haque, National University Registration Number:

17501001053 Academic sessions: 2017 – 2018, Major in Finance & Banking, is a
regular student of BBA Program, Department of Business Administration, Dhaka City
College, under National University of Bangladesh. She has completed an Internship
Report on “SME Banking Activities – Jamuna Bank Limited” under my supervision
which is the fulfillment of partial requirement for obtaining BBA degree.
I wish her success in all her future endeavors.
___________________________
Ms. Fahmida Rawshan

Assistant Professor
Dhaka City College
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Chapter Serial Contents Page
No. No.
i. Letter of Transmittal
ii. Acknowledgement
iii. Certificate of Supervisor
Prefatory Part iv. Executive Summary
v. List of Acronyms
vi. List of Tables
vii. List of Figures
Introduction
1.1 Origin of the report
1.2 Objectives of the report
Chapter 1 1.3 Methodology of the report
1.4 Scope of the report
1.5 Limitations of the report
Overview of Jamuna Bank Limited
2.1 Historical Background of JBL
2.2 Corporate Profile of JBL
2.3 Vision of JBL
2.4 Mission of JBL
2.5 Objectives of JBL
Chapter 2 2.6 Core Values of JBL
2.7 Ethical Guidelines of JBL
2.8 Organizational Structure of JBL
2.9 Board of Directors of JBL
2.10 Products and Services of JBL
2.11 CSR of JBL
2.12 SWOT Analysis of JBL
Analysis and Evaluation of SME Banking
Activities of JBL
3.1 SME Banking
3.2 Background of SME Banking
3.3 Definition of SME as per Bangladesh Bank
3.4 Contribution of SME in the National Economy
of Bangladesh
3.5 Minimum Requirement SME Financing
according to Bangladesh Bank
3.6 The importance of SME in Bangladesh
3.7 Financing SME Sectors
3.8 SME Banking in JBL
3.9 Purpose of SME Banking in JBL
3.10 Eligibility of Borrower
3.11 Importance of SME Banking
Chapter 3 3.12 SME Products and Features of JBL
3.13 SME Sectors of JBL
3.14 Dedicated SME Branches of JBL
3.15 Selection criteria for SME Investment
3.16 SME Investment Procedure of JBL
3.17 Recovery Procedures of SME Investment
3.18 Responsibilities of SME Credit Officers
3.19 SME Investment Disbursement of JBL
3.20 Percentage of SME Investment in JBL
3.21 Achievement of SME Investment of JBL
3.22 Performance Comparison of JBL in SME Sector
3.23 Analysis of Women Entrepreneur Investment in
SME
Findings, Recommendations and Conclusion
4.1 Findings
Chapter 4 4.2 Recommendations
4.3 Conclusion
Bibliography
Ending Part
Appendix
List of Acronyms
Serial No Particular Page No
List of Tables
Table No Particular Page No
List of Figures
Figure No Particular Page No
1.1 Origin of The Report
During my BBA program, I completed a 2-month internship program which was an
integral part of the course. The purpose of the internship was to gain a practical
understanding of business administration in a professional setting. My goal was to
supplement the knowledge I had acquired during my BBA course and gain first-hand
experience in the banking industry. I was assigned to work at the Narayanganj Branch
of Jamuna Bank Limited (JBL), one of the most prominent banking institutions in
Bangladesh. For the internship report, I chose to focus on the Small and Medium
Enterprise Activities of JBL. Under the supervision of my supervisor Fahmida
Rawshan, an Assistant Professor of Dhaka City College (DCC), I immersed myself in
this particular area to further develop my practical skills and corporate understanding.
My aim was to bridge the gap between theoretical ideas and their practical application
in a professional context. I was immensely satisfied with my internship experience and
realized that I could apply this valuable knowledge and experience to my future career
goals. This internship report serves as a valuable reminder of the practical knowledge I
gained during my BBA program.
1.2 Objectives of the report

Primary Objective
The primary objective of my project report is to fulfil the partial requirement to achieve the
BBA degree from Dhaka City College under the curriculum of National University of
Bangladesh.
Secondary Objectives
➢ To analysis and Evaluation of SME Banking Activities of JBL
➢ To define SME and its Relevance in Bangladesh
➢ To examine Minimum Requirements for SME Financing
➢ To highlight the Importance of SMEs in Bangladesh
➢ To analyze and Evaluate SME Financing Sectors
➢ To evaluate SME Banking at JBL and Its Purpose
➢ To assess Borrower Eligibility and Importance of SME Banking
➢ To examine SME Products, Features, and Sectors at JBL
➢ To evaluate Selection Criteria and Investment Procedure
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➢ To analyze Recovery Procedures and Responsibilities
➢ To evaluate Investment Disbursement and Performance
➢ To analyze Percentage and Achievement of SME Investments
➢ To compare JBL's Performance in the SME Sector
➢ To analyze Women Entrepreneur Investment in SME
1.3 Methodology of The Report

The collection method of primary and secondary data differ since primary data are to
be originally collected, while in case of secondary data the nature of data collection
work is merely that of compilation. This report is prepared based on information
collection from different sources. It has followed specific methodology to prepare this
report worthy.
Primary Data
➢ Day to day activities that I have been assigned during this internship.
➢ Direct interaction with my supervisor and co-workers.
➢ Teachings and guidance provided by my supervisor throughout this internship
period.
➢ Communicating with the officials of JBL
➢ Observing the departmental activities and noting down the notable incident.
➢ Weekly journal that I have prepared every week for this internship course.
➢ Practical knowledge of operational work.
Secondary Data
➢ Past 5 years Annual report of JBL
➢ Official website of JBL.
➢ Books and Articles published in different website about SME Activities.
➢ Taking information from Newspapers and Journals.
➢ Previous year Internship Report.
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1.4 Scope of The Report
The report meticulously investigates and outlines the steps involved in SME (Small and
Medium Enterprises) banking activities within Jamuna Bank Limited (JBL).
Commencing with an insightful overview of JBL, the report sets the stage for a
thorough comprehension of the organization's operations. Moving forward, it delineates
the SME sector's background, emphasizing its pivotal role in Bangladesh's economic
fabric. Crucial aspects such as the SME Investment Procedure, the involvement of
women entrepreneurs in SMEs, and the distinctive SME products and features offered
by JBL are elaborated upon. Furthermore, the report critically evaluates SME banking
at JBL, aligning it with its intended purpose, and draws a performance comparison
within the SME sector through valuable insights garnered from discussions with bank
personnel. The inclusion of findings and recommendations enriches the report,
providing actionable insights for enhancing SME banking activities. The depth of
analysis, based on credible information sourced from both documents and interviews
with banking officers, substantiates the findings, making the report a comprehensive
and informative study of JBL's SME banking activities.
1.5 Limitations of the report

I have obtained wholehearted co-operation from employees of Jamuna Bank Ltd. The
total duration in internship is not sufficient to give me more than a superficial idea of
the functioning of the various departments. I have faced the following problems which
may be termed as the short coming of the study. These are as follows:
➢ The time period of this study is very short. So, I could not go in depth of the
study.
➢ In order to guard the secrecy of the bank, Jamuna Bank is not interested to
disclose some certain information that is required to prepare this report.
➢ Different websites provide different information due to which it was very
difficult to find accurate information Inconvenience in the presence of topical
data even with the help of the bank employees.
➢ The record system of the annual report is not sufficient
➢ Lack of access in the many section of the bank
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2.1 Historical background of Jamuna Bank Limited
Jamuna Bank Limited, established in 2001, is a private commercial bank based in
Bangladesh. The bank was founded by a group of local entrepreneurs with the aim of
providing both conventional and Islamic banking services to the people of Bangladesh.
Its head office is situated at Gulshan-1, Dhaka. Over the years, Jamuna Bank has
expanded its operations, and as of March 2019, it operates through 132 branches and
offers real-time online banking services to its customers.
The founding chairman of Jamuna Bank Limited was M. A. Khayer, and under his
leadership, the bank set its initial trajectory. Since then, the bank has seen several
chairmen, and as of May 2019, Saidul Islam serves as the chairman. The managing
director, Mirza Ilias Uddin Ahmed, was appointed in January 2020, playing a crucial
role in steering the bank's operations and initiatives.
Throughout its history, Jamuna Bank Limited has garnered recognition and acclaim,
receiving various awards and ratings from diverse organizations and agencies. These
accolades have been in acknowledgment of the bank's performance, governance,
compliance, and dedication to social responsibility. The bank has consistently
demonstrated its commitment to improving its services and products, tailoring them to
meet the diverse needs and preferences of its customers. This includes the introduction
of various deposit schemes, loan products, and digital services, aligning with
technological advancements and changing market demands.
Furthermore, the bank has actively contributed to the economic development and social
welfare of Bangladesh through its corporate social responsibility activities. This reflects
the bank's dedication to not only serving its customers but also giving back to the
community it operates in, thereby fostering a positive societal impact. Overall, Jamuna
Bank Limited has striven to be a responsible and customer-centric financial institution,
working towards the betterment of both its stakeholders and the broader society.
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2.2 Corporate Profile of JBL
Jamuna Bank Limited was incorporated as a public company in Bangladesh under
Companies Act 1994 with the registered office of the company at Jamuna Bank Tower,
Plot-14, Block-C, Bir Uttam A.K Khandakar Road, Gulshan-1, Dhaka. The Bank
commenced its banking business with one branch from June 03, 2001 under the license
issued by Bangladesh Bank. The Corporate Profile of JBL at a glance:
Table 1: Corporate Profile of Jamuna Bank Limited
Corporate Profile Details
Name of The Company Jamuna Bank Limited
Location of Registered Address Jamuna Bank Tower, Plot-14, Block-
C, Bir Uttam A.K Khandakar Road,
Gulshan-1, Dhaka, Bangladesh
Nature of Ownership & Legal Form Public Company Limited by Shares
Certificate of incorporation received April 02, 2001
Certificate of commencement of business April 02, 2001
Company Registration Number C-42780(2139)/2001
Bangladesh Bank License Number BRPD(P)744(81)/2001-1358, dated:
24.04.2001
Inauguration of Bank June 03, 2001
First Branch opening at Mohakhali, Dhaka June 03, 2001
Date of obtaining primary dealer license December 11, 2003
Initial Public Offering December 12, 2005
Listed with DSE April 12, 2006
Listed with CSE April 17, 2006
Obtained Off-Shore Banking License December 22, 2009
Issuance of Right Shares February 07, 2011
Number of Sponsors 20
Number of Directors 20 (including 4 independent
directors)
Location of Operations/Market Served Bangladesh. Other markets are
served through liaisons.
Number of Branches 167
Number of SME centers 08
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Number of Islami Banking Branches 02
Number of Sub-Branches 106
Agent Banking Outlets 42
Number of ATMs 343
Off-shore Banking unit 01
Al-Ihsan Islami Banking Service Centers 167
Telephone +8809610005678
Hotline 16742
SWIFT JAMUBDDH
e-Mail info@jamunabank.com.bd
Web www.jamunabankbd.com
2.3 Vision of JBL

To become a leading banking institution and play a significant role in the development
of the country.
2.4 Mission of JBL

The Bank is committed to satisfy diverse needs of its customers through an array of
products at a competitive price by using appropriate technology and providing timely
service so that sustainable growth, reasonable return and contribution to the
development of the country can be ensured with a motivated and professional work-
force.
2.5 Objectives of JBL

➢ Delivering customers' desired products and services to create true customer
value.
➢ Bringing unbanked people into their delivery channels.
➢ Focusing on export of both traditional and non-traditional items and remittance
to ensure a comfortable position of foreign exchange all the time.
➢ Ensuring organizational efficiency by continuous improvement of human
capital and motivation level, dissemination of information and thereby ensuring
a very congenial environment.
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➢ Doing businesses that have higher risk adjusted return.
➢ Maximizing shareholders’ value at all times alongside ensuring a sustainable
growth of the organization.
➢ Focusing on maintenance of assets quality rather than its aggressive expansion.
➢ Changing the deposit mix thereby reducing the cost of deposits.
➢ Intensifying recovery of classified as well as written off loans.
➢ Adopting new technology to enhance reach, improve efficiencies, fight financial
crimes and enhance service excellence.
➢ Strengthening Risk Management techniques and ensuring compliance culture.
➢ Establishing the brand image as a growth supportive and pro-customer’ bank.
➢ Hiring and retaining quality people with a focus on reducing gender disparity.
➢ Restructuring existing products and introducing new products to meet the
demand of time and the target group.
➢ Remaining aware and conscious about the environment and support the
maintenance of a ‘green’ environments.
➢ Pursuing CSR activities for their continued support to future generation,
distressed people and for advancement of under privileged people of the
country.
2.6 Core Values

The following core values are the foundation of their culture, their brand and their
business strategy. These Core Values embody who they are as a Company, guide their
decisions and inspire us to go forward.
➢ Integrity and Honesty: They continue to be responsible, ethical, sincere

and transparent in their thoughts and actions.
➢ Relationships: They seek to establish mutually beneficial, caring
relationships based on trust and the desire for mutual success.
➢ Respect: They consistently seek to treat others as they want to be treated.
➢ Loyalty: They are a family that cares for each other
➢ Hard Work: Customer satisfaction pervades all their activities. They
appreciate that Customer’s satisfaction is critical for their success
➢ Teamwork: They work as a team to meet their common goals.
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➢ Community: They embed their selves in their communities and they take
their needs very seriously. They recognize their responsibility to be active
participants in their local communities.
➢ Confidentiality: As a bank company, their very existence depends on their
ability to protect and guard their customers’ sensitive information. There is
zero tolerance for any breach of confidentiality.
➢ Innovation: Stimulating innovation to strengthen their business. The origin
and objectivity of change management is to achieve perfection and they
believe change is always constant.
➢ Accountability: They accept their individual and team responsibilities and
they meet their commitments. They take responsibility for their performance
in all their decisions and actions.
➢ Pursue Excellence: They will build excellence by challenging their selves
with courage and confidence. They strive to inspire in a fun environment
where innovation thrives, mentoring is essential, and their journey is
celebrated. They strive to provide a legendary experience through their
unrivaled service.
➢ Maximization of Shareholders value: Creation and Maximization of
values for their shareholders.
2.7 Ethical Guidelines

Serving Customers
➢ They are fair and well-committed in serving the customers.
➢ They are keeping customers fully informed with all of their banking and
financial product.
➢ They strictly adhere to the principle of integrity in all course of banking
operations.
➢ They provide clear, understandable and accurate information to their customers
within the frame of mutual trust in all their services and operations, and perform
their customer services timely and completely;
➢ They maintain strict secrecy of customers’ accounts at all times unless asked by
any competent court or any other lawful authority;
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➢ They understand and honor customer needs, as well as serve them impartially,
promptly and honestly.
Serving Stakeholders
➢ They provide fair treatment to all stakeholders.
➢ They provide adequate disclosure of corporate and operational information
results to
➢ shareholders for taking suitable investment decision.
➢ They make utmost endeavor to maximize profit and increase payout ratio for
the stakeholders and giving best effort to maximize profit and manage the same
ethically and properly.
➢ Stable Dividend Policy.
➢ Equal treatment to all shareholders irrespective of their individual size of
shareholding
➢ Maintenance of fairness and accuracy of financial reporting and records.
➢ Restrictions on insider trading
Dealing with Regulations

➢ They strictly comply with applicable laws and regulations.
➢ They have a culture of timely compliance of regulatory requirements.
Dealing with Employees

➢ They are concerned about their employees and provide competitive
compensation packages to them.
➢ They ensure work under highly motivated team spirit and fellowship bond.
➢ Their employees follow Bank’s Code of Conduct.
➢ They abstain their selves from any discrimination of ethnical origin, religion,
financial and social status, or gender in provision of their services;
➢ They take care of their employees’ health and safety.
➢ They maintain zero tolerance for any act of dishonesty.
➢ They are an equal employment opportunity provider.
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Dealing with Society
➢ In all of their activities, they do not only target profitability, but also take pains
in supporting and sponsoring social and cultural events and activities in the light
of the principles of supervision of public benefits and respect to environment;
➢ They do not encourage projects which are not environment friendly.
➢ They extend financial assistance to poor, helpless and distressed people as well
as provide donation/sponsorships to sports, culture, health-care and community
development ventures.
2.8 Organizational Structure

Jamuna Bank Limited (JBL) adheres to a well-defined hierarchical structure,
emphasizing organized management and supervision. The hierarchy spans from the top
management down to lower-level officers, ensuring a systematic flow of control and
guidance. At the apex, the Board of Directors holds the highest authority, setting the
overarching direction for the bank. Directly beneath them is the Managing Director,
responsible for strategic implementation and operational oversight.
Further down the hierarchy are Divisional Heads and Departmental Heads, overseeing
specific segments of the bank's operations. They play a vital role in formulating
strategies and managing respective divisions and departments. Each official within
these divisions and departments operates according to an office order, outlining their
duties and responsibilities, under the close supervision of their immediate superiors.
This hierarchical framework instills efficiency, accountability, and a structured
approach throughout the organization, aligning with JBL's commitment to
professionalism and adherence to banking principles in its banking operations.
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Fig 1: Organizational Structure of Jamuna Bank Limited
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2.9 Board of Directors of JBL
Table 2: Board of Directors of Jamuna Bank Limited
Name Designation
Mr. Md. Saidul Islam Chairman, Member of Risk Management
Committee
Engr. A. K. M. Mosharraf Hussain Directors, Chairman of Executive Committee
Engr. Md. Atiqur Rahman Directors, Member of Executive Committee
Mr. Gazi Golam Ashria Directors, Member of Audit Committee
Mr. Fazlur Rahman Directors
Al-Haj Nur Mohammed Directors, Member of Executive Committee
Mr. Robin Razon Sakhawat Directors, Member of Audit Committee
Mr. Redwan-ul Karim Ansari Directors, Member of Risk Management
Committee
Mr. Md. Belal Hossain Directors, Member of Risk Management
Committee
Mr. Md. Mahmudul Hoque Directors, Member of Executive Committee
Mr. Shaheen Mahmud Directors, Member of Executive Committee
Mr. Md. Sirajul Islam Varosha Directors, Member of Executive Committee
Mr. Kanutosh Majumder Directors, Member of Executive Committee
Mr. Md. Ismail Hossain Siraji Directors, Member of Audit Committee
Mr. Gazi Golam Murtoza Directors, Member of Risk Management
Committee
Mr. Md. Hasan Directors, Chairman of Risk Management
Committee
Mr. Md. Abdur Rahman Sarker Independent Directors, Chairman of Audit
Committee
Mr. Md. Humayun Kabir Khan Independent Directors
Mr. Md. Abdul Jabber Chowdhury Independent Directors, Member of Audit
Committee
Mr. M. Murshidul Huq Khan Independent Directors
Mr. Mirza Elias Uddin Ahmed Managing Director & CEO
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Dr. Shaikh Muhammad Mahadi Chairman of Shari’ah Supervisory Committee
Hasan
Mr. Mawlana Abdur Razzak Member of Shari’ah Supervisory Committee
Hafez Mawlana Mufti Ruhul Amin Member of Shari’ah Supervisory Committee
Hafez Mawlana Prof. Dr. Shahidul Member of Shari’ah Supervisory Committee
Islam Barakati
Dr. Ahmadullah Trishali Member of Shari’ah Supervisory Committee
Dr. Md. Anwar Hosain Molla Member of Shari’ah Supervisory Committee
Mr. Mirza Elias Uddin Ahmed Ex-Officio Member of Shari’ah Supervisory
Committee
2.10 Products and Services

Jamuna Bank Ltd. (JBL) is a private commercial bank in Bangladesh that offers a range
of products and services to its customers. JBL was established in 2001 by a group of
local entrepreneurs with a vision of creating a model banking institution with different
outlooks. JBL has 146 branches across the country and provides conventional and
Islamic banking through designated branches. Some of the products and services of JBL
are:
➢ Deposit schemes: JBL offers various deposit schemes for different types of
customers, such as fixed deposits, double growth deposit schemes, triple growth
deposit schemes, monthly benefit scheme, millionaire deposit scheme, kotipati
deposit scheme, NRB off-shore term deposit, etc.
Table 3: Deposit account of Jamuna Bank Limited
Deposit
Current Deposit Account
Short Notice Deposit Account
Savings Bank Account
Transactional Account
Special Savings Bank Account
Resident Foreign Currency Deposit
Accounts
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Double Growth Deposit Scheme
Fixed Deposit Receipts
Triple Growth Deposit Scheme
Conventional
Deposit Monthly Benefit Scheme
Lakhpati Deposit Scheme
Millionaire Deposit Scheme
Kotipati Deposit Scheme
Deposit Schemes Monthly Benefit Scheme
Marriage Scheme
Pension Deposit Scheme
Educational Scheme
Rural Deposit Scheme
Grihini Savings Account
Student Savings Account
Others JBL School Account
Senior Citizen Savings Account
➢ Islamic banking system: JBL follows the Islamic Shariah mode of deposits
and investments for its Islamic banking customers. It offers profit rates based
on the principles of Mudaraba, Musharaka, Bai-Muajjal, Bai-Salam, etc.
Table 4: Islamic Banking Mode of Jamuna Bank Limited

Islamic Banking System
Al-Wadiah Current
Deposit
Mudaraba Short Notice
Deposit
Mudaraba Saving Deposit
Mudaraba Term Deposit
Receipt
Mudaraba Monthly Savings
Deposit Scheme
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Islamic Banking Mode Mudaraba Crorepoti Deposit
Scheme
Mudaraba Lakhpati Deposit
Scheme
Mudaraba Double/Triple
Growth Deposit
Mudaraba Education Deposit
Mudaraba Hajj Deposit
Mudaraba Marriage Deposit
Scheme
Mudaraba Millionaire
Major Scheme Deposit Deposit

Mudaraba Monthly Benefit
Deposit
Mudaraba Rural Deposit
Scheme
Mudaraba Pension Deposit
Mudaraba Car Deposit
Other Mudaraba Deposit
➢ SME banking: Jamuna Bank Ltd supports the small and medium enterprises
(SMEs) sector by providing loans and other facilities to the entrepreneurs. It has
special products for women entrepreneurs, such as Jamuna Swabolombi,
Jamuna Chalantika, and Jamuna Green.
Table 5: SME services of Jamuna Bank Limited
SME Products and Services by Jamuna Bank Ltd
Jamuna Swabolombi (Term Loan)
Jamuna Somriddhi (Term Loan backed by 25% Cash Collateral)
Jamuna Chalantika [Composite of Term & CC (Hypo) Loan]
Jamuna Nari Uddogh (Special product for women entrepreneur)
Jamuna Shachhondo (Term Loan & SOD)
SOD (General) under SME (Over draft)
SME Financing Jamuna Jantrik (Lease Finance
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Jamuna Bonik (LC & LTR)
Jamuna NGO Shohojogi (Term Loan to NGOs)
Jamuna Green (Funded & Non-Funded facility)
Bai-Muazzal for Jamuna Swabolombi (Term Investment)
Bai-Muazzal for Jamuna Somriddhi (Term Investment)
Bai Muazzal Commercial (SME) (Continuous Investment)
Jamuna Distributor Finance
Jamuna Factoring
Jamuna Utshob
New Products
Jamuna Suchona
Jamuna Griho
Jamuna Bahon
Jamuna Kutir
Jamuna Swapno
Jamuna Payment Guarantee under SME
➢ NRB banking: JBL facilitates the non-resident Bangladeshis (NRBs) by

offering them foreign currency accounts, remittance services, investment
opportunities, etc.
Table 6: NRB services of Jamuna Bank Limited

NRB Products of Jamuna Bank
NRB Monthly Savings
NRB Monthly Benefit Scheme
NRB Double Growth Benefit Scheme
NRB Triple Growth Benefit Scheme
NRB Kotipati Deposit Scheme
NRB Millionaire Deposit Scheme
NRB Monthly pension Deposit Scheme
Deposit Schemes for NRB NRB Pension Term Deposit Scheme

NRB Home Travel Deposit
NRB Property Deposit
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NRB Wage Earner Deposit
NRB Home Car Deposit
NRB Education Saving Scheme
NRB Student Deposit
NRB Women/Housewife Deposit
NRB Future Plan Deposit
NRB Advance Earning Deposit
➢ Corporate banking: JBL provides various corporate banking services to its

clients, such as issuance of LC and guarantee, LC advising, LC confirmation,
bank guarantee, hajj guarantee, purchasing/discounting/negotiating export bills,
off-shore banking services, trade payment settlement, etc.
Table 7: Foreign Exchange services of Jamuna Bank Limited

Corporate Banking Product and Services
Loan Against Trust Receipt
Time Loan
Post Import Finance LIM
Back-to-Back L/C
Packing Credit
Overdraft
Trade Finance Export Finance Foreign Documentary Bill
Purchase
Local Documentary Bill
Purchase
Structured Finance Loan Syndication
Project Finance
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➢ Retail banking: JBL offers personal banking services to its customers, such as
auto loan, home loan, personal loan, education loan, overseas job loan, salary
loan, any purpose loan, etc.
Table 8: Loans of Jamuna Bank Limited
Retail Banking Products and Services of Jamuna Bank
CC (Hypo)
CC (Pledge)
SOD (General)
SOD (FDR)
SOD (Financial Obligation)
Short Term Finance SOD (Special Scheme)
SOD (Share)
Time Loan
Term Loan
Term Finance Real Estate Finance
Corporate Loan Lease Finance
Products Bid-Bond
SOD (Pay Order)
Performance Guarantee (PG)
Advance Payment Guarantee
(APG)
SOD (Work Order)
Work Order Finance Security Bond (Payment
Guarantee)
Guarantee against Counter
Guarantee of Other
Bank/NBFI (Foreign or
Local)
Jamuna Homes
Auto Loan
Personal Loan
Any Purpose Loan
Salary Loan
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Doctors Loan
Retail Loan Education Loan
Moto Cycle Loan for
Female Students
Overseas Job Loan
Secured Over Draft
(SOD)
2.11 Corporate Social Responsibility

Jamuna Bank Ltd, a prominent private commercial bank in Bangladesh, has been
awarded for its corporate social responsibility (CSR) activities in 2021 and 2022. The
bank obtained the prestigious Best CSR Bank 2021 award from UK based The Global
Economics in Dubai, UAE, for its endeavors to various social and environmental issues.
Jamuna Bank Foundation, the CSR arm of the bank, has been engaged in education,
health care, green product innovation, alternative energy utilization, capacity
development, humanitarian assistance, poverty reduction, and cultural conservation.
The bank also revealed its first ever Independent Sustainability Report-2021 with the
slogan "Thriving forward Through Green Initiatives". The report demonstrates the
bank's efforts to incorporate sustainability into its business operations and stakeholder
engagement. Jamuna Bank Ltd is dedicated to creating a positive impact on society and
the environment through its CSR initiatives. Some CSR activities of Jamuna Bank are
as follows:
➢ Jamuna Bank Foundation introduced scholarships for unprivileged & disabled

but meritorious students in 2007, intended to remove barriers of many economic
hardship hit deserving students so that they can achieve their desired level of
education and contribute to building the nation. Currently, 375 underprivileged,
disabled but meritorious students are getting scholarships under the program.
➢ This year, they donated 75,000 blankets to the Prime Minister’s Relief and
welfare Fund for onward distribution to the destitute and cold-affected people
of the country. In addition, they have also distributed 84,000+ blankets among
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the winter-affected people. They also arranged a whole night blanket
distribution program for the people of Dhaka city who were passing the night
footpath last winter.
➢ They have established 13 nos. Sewing Training Center for underprivileged

women and distributed sewing machines to many women in different districts
of Bangladesh. Their aims are to the empowerment of underprivileged women
so that they can earn for themselves and support their families.
➢ They have also established 14 nos. computer training centers in different places
in the country to help achieve the Government’s goal of building a SMART
Bangladesh.
➢ they have established a Free primary School for slum-dwelling children,

Jamuna Bank Foundation Autism School named Prodeep for ensuring the
education of a child with a disability and Jamuna Bank Madrasah to motivate
children to learn, Holly Quran.
2.12 SWOT Analysis of Jamuna Bank Limited

SWOT analysis is a powerful tool employed by Jamuna Bank Limited (JBL) to
comprehensively assess its strategic standing in the competitive banking industry. By
delving into internal strengths and weaknesses and external opportunities and threats,
JBL gains valuable insights that steer informed decision-making. This methodical
evaluation offers a fresh perspective, grounded in facts, fostering innovative approaches
that align with the bank's objectives.
JBL acknowledges its inherent strengths, utilizing them to their fullest potential, while
also addressing and improving upon identified weaknesses. The analysis further enables
the bank to seize emerging opportunities in the dynamic business environment while
effectively mitigating potential threats. It's a roadmap that guides the organization to
gauge performance, adapt to changing market conditions, and navigate through
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competition, ensuring sustainable growth and relevance. The SWOT analysis of JBL is
as follows:
Strength
➢ It has just developed a positive role in the country's banking industry. In this
region, it is one of the key private sector business banks. In the area of profit
and deposits, this bank has just shown an enormous growth.
➢ It has a shrewd organizational culture. The working environment is kind,
instinctive and easygoing. Furthermore, there are no covered impediments or
cutoff points while pass on between the transcendent and the delegates. This
organizational culture provides the workers with a phenomenal motivating
factor.
➢ It offers quick and quality assistance contrasted with the others banks of this
country.
➢ It is working fourth the era of digital money with mechanization measure.
➢ Having extremely proficient and experienced heads to take care of the basic
issues.
➢ It has the standing of being the supplier of good quality support of its likely
clients.
Opportunity
➢ To reduce the business risk, their business portfolio needs to be expanded. The
administration will consider choices to start vendor banking or expand into the
field of rental and security.
➢ The primary monetary market is directly influenced by the behavior in the
secondary monetary market. In the primary monetary market, banks act. Public
financial operation is supervised by interest in the secondary market. Public-
economy operation regulates the Bank's sector.
➢ A possibility in retail banking lies in the idea in which the expanded population
of the nation is increasingly finding out how to accept customer accounts.
➢ It can get new items and servicers for growth.
➢ It can set up more branches to capture more nationwide customers and extend
their administration.
➢ It can work all the duties more easily by selecting more diversified individuals.
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➢ As they effectively have a large number of exporters and shippers on their trust,
it can broaden unfamiliar trade exercises.
Weakness
➢ The big rule is that the institution does not have an unmistakable declaration of
purpose and a basic course of action. They do not have any techniques built to
decide whether they need to focus on retail activities or become a corporate
institution. With a good realistic main structure, the method of things to come
should be settled now.
➢ As far as time is tight, they need to emphasize that more. Aggressive advertising
campaigns need to be pursued.
➢ There is no progress or way forward for some portion of the job at this
organization. There is also an absence of creativity in individuals occupying
those roles. This is a vulnerability of this organization that there is a gathering
of unsatisfied staff.
➢ A lack of contemporary embellishments for computerized financing.
➢ When receiving repeated reports and having a bad effect on the association, they
actually perform simple procedures in a different trade division.
Threats
➢ This bank is critically challenged by all supporting international banks and
upcoming foreign and private banks. The power of competition will increase
more on the off chance that occurs, and banks should build methodologies to go
up against these neighboring and unknown banks.
➢ The mid-level representatives' low remuneration bundle to carry down the level
status will not sustain the morale of the employees. Great quality employees
then leave the organization and it affects the association in general.
➢ Democratic weakness and independent conservatives.
➢ Consistent government pressure factor for lowering loan fees.
➢ Country's Bank's latest expectations and policy.
➢ Issue of money exchange with an unknown country.
➢ It can very well to be said that top administration officials have banking skills
and expertise. It has great changes, so the future customers are taken into
account. Exquisite weather encourages the skill of the staff. Other than this
bank, there is sufficient resources, high interest and altruism for the DPS and
Savings record.
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3.1 SME Banking
SME banking is a term that refers to the provision of financial services to small and
medium-sized enterprises (SMEs). SMEs are businesses that have an annual turnover
of less than a certain amount, depending on the country or region. SME banking
typically includes products and services such as loans, overdrafts, credit cards, trade
finance, cash management, and advisory services. SME banking is important for the
economic development and growth of a country, as SMEs contribute to job creation,
innovation, and social inclusion. SME banking also faces some challenges, such as high
transaction costs, a lack of collateral, information asymmetry, regulatory barriers, and
accessing financing, which can limit their growth and productivity. To overcome these
challenges, SME banking requires a tailored approach that understands the specific
needs and characteristics of SMEs, such as their industry, size, stage of development,
and risk profile.
Small and medium-sized enterprises (SMEs) are a vital part of the economy in many
countries, including Bangladesh. Banks have an opportunity to serve SMEs better by
providing them with financial assistance to adopt digitalization and automation in their
business operations, which can lead to higher productivity, process efficiency, efficient
cost management, and greater market penetration. McKinsey suggests that banks can
transfer the capabilities and lessons they have gleaned from providing digital services
to their retail banking customers over to their SME banking clients. EY (Ernst &
Young), a globally recognized professional services firm, has identified five steps for
banks to shift their focus back to growth, placing an increased emphasis on client
experience, new technology, and operational efficiency.
3.2 Background of SME Banking

The history of SME (Small and Medium Enterprise) banking stems from the
development and recognition of SMEs in the global economic structure. While the
official term SME is a relatively modern phenomenon, the financial ecosystem
designed to meet the unique needs of small businesses has deep historical roots.
In ancient and medieval times, artisans and small businesses often turned to local
sources of finance. Community-centered lenders, brokers and lending systems have
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become the basis of financial support for these businesses. At the core of these informal
financial mechanisms is trust, often cultivated over generations and rooted in personal
and community relationships. During the 17th and 18th centuries, especially in the
European context, emerging waves of trade led to the emergence of the first banking
institutions. Although these banks primarily serve a broader corporate audience, they
are not shy about expanding their services to small businesses, even if their participation
is quite limited.
The 19th century, marked by the outbreak of the industrial revolution, brought
significant changes to the economic landscape. With industries thriving at an
unprecedented scale, small businesses find themselves in direct competition with
giants. Their survival often depends on obtaining specialized sources of credit.
Recognizing this niche need, a number of banks have begun to develop financial
solutions suitable for these small and medium enterprises.
The aftermath of World War II particularly emphasized the role of small and medium-
sized enterprises, especially in war-torn contexts in Europe and Japan. Small and
medium-sized enterprises played a key role in post-war reconstruction efforts, driving
economic recovery from the start. This has prompted governments to take this into
account and design clear policies and support structures for SMEs. For example,
countries such as Germany have gone further to establish banks specifically for the
SME sector.
At the end of the 20th century, the growing wave of globalization, combined with the
growing role of small and medium-sized enterprises in economic development,
attracted the attention of global organizations. Notable institutions such as the World
Bank and the International Finance Corporation have begun emphasizing the
importance of SME banking, championing their cause in the global arena.
Technological advances have continued to reshape the contours of the SME banking
sector. As the world enters the digital age, so does the banking industry. SME-focused
digital platforms, online banking and a suite of digital tools tailored to SME needs have
become the norm.
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The dawn of the 21st century has seen the fintech sector flourish, with a clear impact
on SME banking. These flexible and innovative fintech companies already offer a range
of services, from alternative lending solutions to sophisticated payment gateways, all
tailored for modern SMEs.
However, the journey is not without pitfalls. Global events, such as the 2008 financial
crisis and the recent COVID-19 pandemic, have highlighted the inherent vulnerabilities
of SMEs.
However, in the face of such adversities, banks and financial institutions have stepped
up to develop specialized support mechanisms, moratoriums and relief plans to support
SMEs in these chaotic times.
Fundamentally, the structure of SME banking services is rich and complex, reflecting
the resilience and importance of SMEs in our global economy. As commerce continues
to evolve, SME banking infrastructures will inevitably be recalibrated, ensuring they
remain responsive to the ever-changing challenges and needs of these
foundational businesses.
3.3 Definition of SME as per Bangladesh Bank

The role of Small and Medium Enterprises (SMEs) is indispensable for overall
economic development of a country particularly for developing countries like
Bangladesh. Since this sector is labor intensive with short gestation period, it is capable
of increasing national income as well as rapid employment generation; achieving
Millennium Development Goals (MDGs) especially eradication of extreme poverty and
hunger, gender equality and women empowerment. SME sector has played a vital role
in economic development of some prosperous countries of Asia. Our neighboring
countries have also given due importance on SME. Terming SME as ‘employment
generating machine’ they stressed on SME development for higher economic growth,
narrowing the gap of income inequality and poverty alleviation. The present
government has also put much emphasis on the development of SME sector considering
it as ‘the driving force for industrialization’
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3.3.1 Definition of SME:
Existing definition of SME is recommended by Better Business Forum and accepted as
a uniform one by Ministry of Industry and Bangladesh Bank. Criteria of the definition
of SME are given below:
3.3.2 Definition of Small Enterprise:

Small Enterprise refers to the firm/business which is not a public limited company and
complies the following criteria:
Table 9: Criteria of Small Enterprise according to Bangladesh Bank

Serial Sector Fixed Asset other than Employed Manpower
No. Land and Building (Tk.) (not above)
01. Service 50,000-50,00,000 25
02. Business 50,000-50,00,000 25
03. Industrial 50,000-1,50,00,000 50
3.3.3 Definition of Medium Enterprise:

Medium Enterprise refers to the establishment/firm which is not a public limited
company and complies the following criteria:
Table 10: Criteria of Medium Enterprise according to Bangladesh Bank

Serial Sector Fixed Asset other than Employed
No. Land and Building (Tk.) Manpower (not
above)
01. Service 50,00,000 - 10,00,00,000 50
02. Business 50,00,000 - 10,00,00,000 50
03. Industrial 1,50,00,000 - 20,00,00,000 150
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3.4 Contribution of SME in the National Economy of
Bangladesh
The SME sector is a key driver of economic growth and employment generation in
Bangladesh. It is also playing an increasingly important role in exports. In FY22, SMEs
accounted for 20% of the country's total exports.
The government of Bangladesh is committed to supporting the growth of the SME

sector. It has taken a number of steps to support SMEs, including providing tax breaks,
access to finance, and training programs.
According to the Bangladesh Bureau of Statistics (BBS), the SME sector contributed
38.57% to GDP in FY22, up from 34.99% in FY19. SMEs also employ around 80% of
the private sector workforce in Bangladesh.
Table 11: Contribution of SME in GDP for last Five Years
Type of Industry FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Cottage Industry 72127 78829 84700 96704 100257
(3.63%) (3.72%) (3.73%) (3.94%) (3.94%)
Small, Micro, 129108 142102 157882 174632 179325
Medium Industry (6.5%) (6.71%) (6.95%) (7.11%) (7.04%)
Total Industry 644940.1 698290.5 769486.9 859003.7 890023.1
(32.5%) (32.98%) (33.85%) (34.99%) (34.94%)
(Source: Bangladesh Economic Review 2022)
However, SMEs in Bangladesh still face a number of challenges, such as access to

credit, skilled labor, and markets. The government and the private sector need to work
together to address these challenges and help SMEs to reach their full potential
Here are some of the latest initiatives that the government of Bangladesh has taken to
support SMEs:
➢ The government has established a special fund for SMEs, which provides them
with access to affordable credit.
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➢ The government has also launched a number of training programs for SME
workers.
➢ The government is working to improve the business environment for SMEs by
reducing bureaucracy and streamlining regulations.
The private sector is also playing a role in supporting the growth of SMEs. A number
of banks and financial institutions have developed special products and services for
SMEs. There are also a number of private sector organizations that provide training and
support to SMEs, some notable mention of private SME organization in Bangladesh are
as follow:
➢ Women Entrepreneurs Association of Bangladesh (WEAB)

➢ Young Entrepreneurs Society of Bangladesh (YES)
➢ Thengamara Mohila Sabuj Sangha (TMSS)
➢ Dhaka Chamber of Commerce and Industry (DCCI)
➢ Bangladesh Rural Advancement Committee (BRAC)
➢ Association for Social Advancement (ASA)
3.5 Minimum Requirement SME Financing according to

Bangladesh Bank
The minimum requirement for SME financing according to Bangladesh Bank can be
categorized into 2 categories, 1) Minimum Requirement for Loan, 2) Minimum
Eligibility to take loan. Bangladesh Bank sets these minimum requirements to ensure
that SMEs seeking financing are financially sound, have a viable business plan, and can
effectively utilize the loan for business growth. It also helps maintain the overall health
and stability of the SME sector within the country. Bangladesh Bank (BB) has set the
following minimum requirements for SME financing
Table 12: Requirement for Loan in SME sectors
Particular Minimum Level
Loan amount 25,000 BDT
Margin Requirement 25% of Loan Amount
Interest Rate 5% or less
Repayment Period Flexible and tailored
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Banks and financial institutions (BFIs) may require collateral for SME financing, but
the collateral requirements should be reasonable and should not discourage borrowers
from applying for loans.
Minimum Eligibility for Loan

➢ Business Eligibility: The business should fall under the definition of an
SME as stipulated by the Bangladesh Bank. The definitions are based on the
number of employees, annual turnover, or capital investment.
➢ Business License: Valid trade license or business license that shows the
business is legally operating in Bangladesh.
➢ Operational History: Some banks might require businesses to have been
operational for a certain period of time (e.g., 1-2 years) to prove their
sustainability and viability.
➢ Business Plan: A detailed business plan indicating the purpose of the loan,
how it will be used, and how the business intends to repay it.
➢ Financial Statements: Audited financial statements for the past years (if
available) to assess the financial health of the business.
➢ Collateral: Depending on the size and type of loan, collateral might be
required. This could be in the form of property, equipment, or other assets.
➢ Credit History: The creditworthiness of the business owner(s) might be
checked to ensure there’s a good history of repaying debts.
➢ Other Documentation: This might include tax documents, ownership
details, national identification of the owner(s), etc.
It is important to note that these are the minimum requirements, and banks and financial
institutions may require additional documentation or information depending on their
own lending policies.
In addition to the above requirements, BB has also issued the following guidelines for
SME financing:
➢ BFIs should give due weightage to the credit report of the borrower and his/her
group obtained from a Credit Information Bureau (CIB) of Bangladesh Bank.
➢ BFIs should obtain a copy of financial statements duly audited by a practicing
Chartered Accountant, relating to the business of every borrower who is a
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limited company or where exposure of a bank exceeds Tk. 40 lac, for analysis
and record. However, financial statements signed by the borrower will suffice
where the exposure is fully secured by liquid assets.
➢ BFIs should apply their own due diligence method in selecting
clients/entrepreneurs.
➢ BFIs should formulate their own credit policy following the guidelines of the
Central Bank as minimum benchmark.
BB has also taken some steps and formulated a guideline for the BFIs to ensure more
institutional financial facilities for women entrepreneurs in SME sector. For example,
at least 15% of total BB refinance fund for SME sector has been allocated for women
entrepreneurs, and the interest rate for women entrepreneurs will be Bank rate plus
maximum 5%; i.e., not more than 10% per annum.
It is important to note that these are just the minimum requirements set by BB. BFIs
may impose additional requirements or restrictions on SME financing, depending on
their own credit policies and risk assessment.
3.6 The Importance of SME in Bangladesh

SMEs are the backbone of the Bangladeshi economy. They account for 25% of GDP
and 80% of total industrial jobs. SMEs are also a major source of innovation and
entrepreneurship, and they play a vital role in rural development and poverty
alleviation. Here are some of the key reasons why SMEs are so important to
Bangladesh:
➢ Job creation: SMEs are the largest employers in Bangladesh, accounting for
over 70% of the country's workforce. SMEs are also a major source of jobs for
women and young people.
➢ Economic growth: SMEs play a vital role in the Bangladeshi economy,

contributing to GDP growth, export growth, and industrialization. SMEs are
also a major source of innovation and new product development.
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➢ Rural development: SMEs play an important role in rural development by
providing jobs and income opportunities, promoting entrepreneurship, and
developing rural infrastructure.
➢ Poverty alleviation: SMEs play a vital role in poverty alleviation by providing

jobs and income opportunities for the poor, promoting rural development, and
supporting the growth of small and micro-enterprises.
In addition to the above benefits, SMEs also contribute to the Bangladeshi economy in
the following ways:
➢ They help to diversify the economy by investing in a wide range of sectors.

➢ They help to promote competition and efficiency in the economy.
➢ They help to develop local skills and expertise.
➢ They help to promote entrepreneurship and innovation.
➢ They help to improve the quality of life for Bangladeshis by providing goods
and services at affordable prices.
The Bangladeshi government has recognized the importance of SMEs to the economy
and has taken a number of steps to support their growth and development. These
measures include providing tax breaks, access to finance, and training and skills
development programs.
SMEs are essential for the continued economic growth and development of Bangladesh.
By supporting SMEs, the government can help to create jobs, reduce poverty, and
improve the lives of all Bangladeshis.
3.7 Financing SME Sector

Access to finance is a cornerstone for the growth and sustainability of the Small and
Medium Enterprises (SME) sector, playing a pivotal role in fostering economic
development. Entrepreneurs frequently express concerns about the inhibiting impact of
high interest rates, which indeed present a significant challenge. However, beyond
interest rates, ensuring an ample availability of funds is equally vital. Recognizing this,
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Bangladesh Bank is steadfast in its commitment to easing SME credit through a
dedicated refinance window.
The mechanism involves leveraging the resources of Bangladesh Bank (BB), along
with those of the International Development Association (IDA) and the Asian
Development Bank (ADB), by channeling them through a well-structured refinance
scheme. Within this scheme, Bangladesh Bank extends loans to banks at a reduced
interest rate. In turn, the banks disburse these funds to SMEs at a slightly higher rate,
effectively mitigating the overall cost of financing for SMEs. This approach facilitates
easier access to credit for SMEs, enabling them to make strategic investments, expand
operations, and ultimately contribute to economic growth.
By addressing both the interest rate dilemma and ensuring sufficient funding, this
initiative embodies a proactive step towards empowering entrepreneurs and fortifying
the SME sector, which in turn fuels national economic prosperity and stability.
Recent data on the refinance scheme for SMEs in Bangladesh:

Table 13: Refinance Scheme for SMEs in Bangladesh
Amount Refinanced Tk 3,187 crore (Up to December 2022)

Number of enterprises refinanced 14,122
Revolving fund Tk 918 crore
The Bangladesh Bank is also planning to launch an extended refinance scheme of
Tk. 660 crore with the newly arranged ADB fund.
3.7.1 Eligibility criteria for the refinance scheme

In Bangladesh, the refinance scheme, aimed at bolstering the Small and Medium
Enterprises (SME) sector, operates with specific eligibility criteria.
Firstly, an SME seeking support through this scheme must be formally registered with
the Bangladesh Bank, the country's central banking authority. This requirement
underscores the importance of regulatory compliance and official recognition within
the financial framework.
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Secondly, the SME must be actively engaged in productive activities. This criterion
emphasizes the focus on businesses that contribute to economic growth and
development by generating goods or services.
Lastly, a good credit history is a crucial determinant for an SME to qualify for this
refinance scheme. A positive credit history is indicative of financial responsibility and
reliability in meeting financial obligations, further assuring the lenders of the SME's
credibility.
These eligibility criteria collectively ensure that the SMEs benefiting from the refinance
scheme are established, engaged in meaningful economic activities, and have a track
record of sound financial behavior. Adhering to these prerequisites helps to streamline
the allocation of funds, ensuring that they are directed towards SMEs that have the
potential to make a positive impact on the national economy while demonstrating
financial discipline.
3.7.2 Benefits of the refinancing scheme

The refinance scheme for Small and Medium Enterprises (SMEs) in Bangladesh offers
a range of significant benefits that contribute to the overall development and prosperity
of the SME sector and, consequently, the nation's economy.
Firstly, one of the most tangible advantages is the provision of lower interest rates on
loans. By accessing funds through this scheme, SMEs can benefit from reduced interest
rates, effectively lowering the cost of borrowing. This financial relief supports their
operational and investment endeavors.
Moreover, the refinance scheme significantly amplifies access to finance for SMEs. By
easing the financial burden associated with borrowing, SMEs are more inclined to seek
financial assistance, enabling them to fund expansions, procure necessary equipment,
or diversify their product lines.
Improved cash flow is another direct benefit of the refinance scheme. With lower
interest rates and better access to financing, SMEs can better manage their cash flow,
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ensuring smoother operations and financial stability. This, in turn, allows for strategic
decision-making and timely investments.
Increased investment and production naturally follow, as SMEs can allocate saved
resources into growing their business, enhancing productivity, and exploring new
markets. These investments catalyze economic growth by stimulating demand and
generating revenue.
Equally critical is the role the refinance scheme plays in job creation. As SMEs expand
and invest in their operations, they require additional manpower, thereby generating
employment opportunities. This directly addresses one of the core socio-economic
goals—reducing unemployment and improving livelihoods.
The refinance scheme for SMEs in Bangladesh plays a pivotal role in fostering
economic development by facilitating affordable financing, stimulating investment and
production, improving cash flow, and contributing to job creation. These combined
effects ultimately elevate the SME sector, promoting a healthier economy with
sustainable growth.
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4.1 SME Banking in Jamuna Bank Ltd
Jamuna Bank Ltd, a prominent private commercial bank in Bangladesh, plays a crucial
role in empowering small and medium enterprises (SMEs) through a diverse array of
banking products and services. With a specialized SME division, the bank tailors its
offerings to suit the specific and varied needs of SME customers, ranging from working
capital finance and term loans to trade finance, project finance, lease finance, and
advisory services. This dedicated approach demonstrates the bank's commitment to
understanding and addressing the unique financial requirements of SMEs.
In terms of accessibility, Jamuna Bank Ltd has strategically positioned itself across
Bangladesh with a vast network comprising 134 branches and 12 SME service centers.
This extensive reach enables the bank to effectively cater to over 50,000 SME
customers throughout the nation. By providing a local presence and personalized
attention, the bank fosters stronger relationships with SMEs, aiding them in their
growth and financial stability.
Furthermore, Jamuna Bank Ltd actively collaborates with both local and international
organizations, forming partnerships that enrich the SME ecosystem. These partnerships
open doors for SME customers to benefit from various value-added services, including
training, market linkages, and technology. Such support is instrumental in enhancing
the capacities and capabilities of SMEs, enabling them to compete effectively in a
rapidly evolving market.
The commitment of Jamuna Bank Ltd to support SMEs is deeply rooted in the
understanding of their significance as the backbone of the economy. SMEs drive
economic growth, provide employment opportunities, and are hubs of innovation. By
nurturing and uplifting this sector, the bank contributes to the overall development of
Bangladesh, aligning with the nation's vision for a prosperous and thriving economy.
Through these concerted efforts, Jamuna Bank Ltd continues to play a vital role in the
SME landscape, fostering economic sustainability and inclusiveness.
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4.2 Purpose of SME loan of JBL
The SME loan offerings of Jamuna Bank Ltd are designed with the purpose of
facilitating and promoting the growth of small and medium enterprises (SMEs) in
Bangladesh. These loans cater to a diverse range of needs, aiming to provide financial
assistance and support for different aspects of business development and expansion.
➢ Working Capital: Working capital is the lifeblood of any business, especially

SMEs. The SME loan for working capital ensures that businesses have adequate
funds to cover their day-to-day operational expenses, manage inventory, and
fulfill short-term financial needs. This helps SMEs maintain smooth business
operations without disruptions due to cash flow issues.
➢ Purchasing of Capital Machinery: Investing in capital machinery is critical

for SMEs to enhance their production capacity, improve efficiency, and stay
competitive. The SME loan for purchasing capital machinery allows businesses
to acquire the necessary equipment, tools, or machinery essential for their
operations and growth.
➢ Delivery Van/Transport for Business Purposes: For SMEs involved in

product distribution or service delivery, having a dedicated delivery van or
transport is vital. The loan for purchasing a delivery van or transport supports
SMEs in expanding their reach and ensuring timely and efficient delivery of
products or services to customers.
➢ Renewing Office/Business Premises: Maintaining a conducive and functional

workspace is essential for business productivity. The SME loan for renewing
office or business premises assists SMEs in renovating, upgrading, or expanding
their office spaces, ensuring a professional and conducive environment for their
operations.
➢ Purchase of Commercial Land, Possession of New Venture: Acquiring

commercial land or venturing into new business endeavors requires substantial
investment. The SME loan for the purchase of commercial land or starting a
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new business venture provides the necessary funds to SMEs looking to expand
into new markets or diversify their business operations.
➢ Other Eligible Portfolio of the Bank: The "other eligible portfolio" category
encompasses a broad spectrum of financial needs that SMEs may have. This
could include loans for business expansion, technology upgrades, marketing
initiatives, debt consolidation, or any other areas crucial for the growth and
sustainability of the SME.
Overall, the SME loan offerings of Jamuna Bank Ltd align with the objective of
empowering SMEs by providing tailored financial solutions to meet specific business
requirements, fostering growth, and contributing to the economic development of
Bangladesh.
4.3 Eligibility of Borrower

The eligibility of an SME Borrower in the sense of Jamuna Bank Limited is as follows:
➢ Business Experience: The business must have been in operation for at least 2
years in the same line.
➢ Age Limit: The borrower must be between 20 and 60 years old.
➢ Financial Statements: The borrower must provide the following financial

statements:
i. Last 12 months' sales statement
ii. Last 12 months' bank statement
➢ Other Documents: The borrower must also provide the following documents:
i. Valid trade license of the last 2 years
ii. National Voter ID/Passport of the borrower
iii. Photographs of the borrower and the guarantors
iv. Utility bills of the concerned business
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➢ The maximum loan amount for an SME loan from Jamuna Bank Limited is
BDT 5 Crore.
It is important to note that these are just general eligibility criteria. Jamuna Bank
Limited may have additional requirements for certain SME loans. For example, the
bank may require the borrower to have a minimum net worth or to provide collateral.
4.4 Importance of SME Banking in Bangladesh

Small and Medium Enterprises (SMEs) play a pivotal role in the economic development
of Bangladesh, and SME banking holds significant importance in fostering their growth
and sustainability. Here's a comprehensive overview of the importance of SME banking
in Bangladesh:
➢ Major Contributor to the Economy: SMEs constitute a substantial portion of

Bangladesh's economy, contributing significantly to GDP, employment
generation, and poverty alleviation. SME banking ensures that these vital
economic contributors have access to necessary financial resources and support.
➢ Employment Generation: SMEs are major job creators, employing a

significant portion of the country's workforce. SME banking provides the
funding required to expand operations, allowing these enterprises to hire more
individuals and contribute to reducing unemployment rates.
➢ Poverty Alleviation and Inclusivity: SMEs often empower marginalized and

underserved communities by providing entrepreneurial opportunities. By
facilitating access to finance through specialized SME banking, the sector
becomes a vehicle for poverty reduction and inclusive economic growth.
➢ Innovation and Entrepreneurship: SMEs are often hubs of innovation,

bringing new products, services, and business models to the market. SME
banking fosters entrepreneurship by offering financial products tailored to the
unique needs of SMEs, encouraging innovation and competitiveness.
42
➢ Regional Development: SMEs are prevalent across urban and rural areas,
aiding in balanced regional development. SME banking ensures that enterprises
in various regions have equal access to financial resources, fostering a more
balanced growth across the nation.
➢ Export Diversification: SMEs play a vital role in export diversification,

helping reduce dependency on a few export sectors. SME banking supports
export-oriented SMEs by providing finance, trade support, and financial
products designed to facilitate international trade.
➢ Financial Inclusion: SME banking promotes financial inclusion by offering

accessible financial services to SMEs, including those in remote areas. This
inclusion ensures that even smaller enterprises have the ability to secure loans,
manage cash flows, and expand their businesses.
➢ Skill Development and Training: Many SME banking programs include

training and capacity-building components. They educate SMEs on financial
management, market access, and other critical skills necessary for business
success, enhancing the overall entrepreneurial ecosystem.
➢ Economic Resilience: SMEs contribute to economic resilience by diversifying

the economic base and providing stability. In times of economic downturns, a
robust SME sector, supported by SME banking, can act as a buffer and aid in
the country's swift recovery.
SME banking is not just a financial service; it's a catalyst for economic development,
job creation, poverty alleviation, and innovation. Its significance lies in its ability to
empower and uplift SMEs, ultimately driving the economic prosperity and stability of
Bangladesh.
43
4.5 SME Products and Features of JBL
Jamuna Bank Ltd offers different types of SME loans as I mentioned before. The brief
analysis of these loans is discussing below:
Jamuna Swabolombi: It is a term loan providing financial support to SMEs for various
business needs, promoting growth and sustainability. The features of Jamuna
Swabolombi Loan are as follow:
Table 14: Features Jamuna Swabolombi Loan
Particulars Discussion
Sector Small & Medium Enterprise
Purpose Any justifiable business purposes.
Key Features ➢ Maximum Tk.25 lac loan amount
➢ Maximum 36 months maturity period
➢ Convenient EMI
➢ Fast and quality service
➢ No hidden charges
➢ Collateral free loan.
Eligibility ➢ Having business experience at least 2 years in the
same line
➢ Age limit: 25 years to 65 years
➢ All relevant documents of the business
Jamuna Somriddhi: It is a term loan secured by a 25% cash collateral, offering SMEs
financial assistance while ensuring security for the bank
Table 15: Features Jamuna Somriddhi Loan
Key Features ➢ Maximum Tk.100.00 lac loan amount
➢ Max. 48 months
➢ Convenient EMI
44
➢ 25% cash collateral of the loan amount to be required
as security.
Eligibility ➢ Having business experience at least 2 years in the same
line.
➢ All relevant document of the business
Jamuna Jantrik: It is a lease finance option enabling SMEs to acquire essential

machinery and equipment for their operations.
Table 16: Features of Jamuna Jantrik Loan
Sector Micro, Small & Medium Enterprise
Purpose To purchase capital machineries
➢ Maximum 60 months Maturity
➢ Convenient EMI
➢ Equity ratio: 70: 30
➢ Personal Guarantee
line
Jamuna Nari Uddogh: It is a specialized product catering to women entrepreneurs,

empowering them with financial support for their ventures.
Table 17: Features of Jamuna Nari Uddogh
Purpose Any justifiable business purpose
➢ Maximum 48 months maturity
45
➢ Convenient EMI
➢ Personal Guarantee as security
line.
Jamuna Chalantika: A composite loan combining both term loan and cash credit
(hypothecation) to meet the multifaceted financial needs of SMEs.
Table 18: Features of Jamuna Chalantika
Purpose Working Capital requirement & other business needs
Key Features ➢ Loan Amount: Max. Tk.500.00 lac
➢ Mode of Loan: CC (Hypo) & Term loan
➢ Tenure: For CC (Hypo): 12 months (renewable),
➢ Maximum 60 months mature
➢ Convenient EMI
➢ Collateral security to be required.
line.
Jamuna NGO Shohojogi: It is a term loan catering to the financial needs of Non-
Governmental Organizations (NGOs), aiding in their operations and projects.
Table 19: Features of Jamuna NGO Shohojogi
Sector Small & Medium sized NGOs
46
Purpose To refinance in the profitable cottage, micro & small enterprise.
Key Features ➢ Maximum Tk.500.00 lac loan
➢ Maximum 60 months maturity
➢ Convenient EMI
➢ Fast and quality service.
➢ No hidden charges.
Eligibility ➢ At least 8 years’ experience with satisfactory track
record.
➢ The NGO must be enlisted with NGO affairs bureau and
related with other government organizations.
➢ Satisfactory credit rating
➢ All relevant documents of the concerned NGO
Jamuna Green: It is a loan that provide both funded and non-funded facilities
promoting eco-friendly and sustainable business practices.
Table 20: Features of Jamuna Green
Purpose To facilitate establishment of eco-friendly projects.
Key Features ➢ Loan Amount: Max. 300.00 lac.
➢ Tenure: Max. 60 months.
➢ Interest Rate: Competitive interest rate.
➢ Fast and quality service.
Eligibility ➢ Having business for at least 2 years in the same line.
➢ Age Limit: 20 years to 60 years
47
Jamuna Shachhondo: It is a combination of term loan and secured overdraft (SOD)
to provide flexible financing solutions for SMEs.
Table 21: Features of Jamuna Shachhondo
➢ Mode of Loan: SOD (FO) & Term loan
➢ Tenure: For SOD: 12 months (renewable) & Term loan:
48 months
➢ Convenient EMI
➢ 25% cash collateral of loan amount to be required.
line
Jamuna-Distributor finance under SME: It is a financial product targeting

distributors, providing necessary funding for their operations and expansion.
Table 22: Features of Jamuna-Distributor finance under SME
Sector Micro & Small Enterprise
Purpose To purchase goods favoring distributors from reputed companies.
Key Features ➢ Maximum Tk.500.00 lac Loan Amount
➢ Mode of Loan: Revolving Short-term loan
➢ Tenure: 12 months (renewable)
➢ 25% cash collateral to be required up to loan amount of
Tk.100.00 lac.
Eligibility ➢ Having business experience at least 2 years in the same line
48
Jamuna Factoring [Accounts Receivables Finance] under SME: It is a specialized

financial service helping SMEs manage their receivables and cash flows efficiently.
Table 23: Features of Jamuna Factoring [Accounts Receivables Finance] under
SME
Purpose To meet up short term cash requirement of the business.
➢ Tenure: 12 months (renewable)
➢ Personal guarantee.
➢ Assignment of bills/receivables from buyer.
Eligibility ➢ Having business experience at least 2 years in the same line
Jamuna Utshob: It is a product designed to support SMEs during festive seasons or

special occasions, aiding in managing increased demand and inventory.
Table 24: Features of Jamuna Utshob
Purpose To meet up additional/seasonal working capital requirement.
➢ Tenure: 11 months (case to case) For Limit: 12 months
(renewable)
49
➢ 25% cash collateral to be required for amount up to
Tk.50.00 lac (Case to case).
line
Jamuna Shuchona: It is a financial assistance and guidance to educate and support

SMEs in making informed financial decisions.
Table 25: Features of Jamuna Shuchona
Sector Micro, Small & Medium Enterprise (Trading & Service-related
business)
Purpose To meet up working capital requirement.
➢ Mode of Loan: OD (General) & Term loan
➢ Tenure: For OD: 12 months (renewable), Term loan:
Max. 60 months
line
➢ All relevant documents of the business.
50
Jamuna Griho: It is a tailored financial solution for the housing needs of SME
entrepreneurs.
Table 26: Features of Jamuna Griho
Purpose To build up semi-pucca building / renovation to the owner of
land wherein garments worker or labor for other manufacturing
industries will be tenant.
➢ Mode of Loan: Term loan
➢ Tenure: Max. 60 months
➢ Maximum 6 months grace period
➢ Convenient EMI
line
Jamuna Bahon: It is a financing option to support transportation and logistics needs

of SMEs.
Table 27: Features of Jamuna Bahon
Purpose To purchase new/recondition vehicle for commercial / business
/official use.
➢ Equity ratio: 60: 40
➢ Convenient EMI
➢ Personal Guarantee
51
➢ Registration of vehicle in favor of the Bank.
line
Jamuna Kutir: It is a Products aimed at assisting SMEs in developing and enhancing

their small-scale enterprises.
Table 28: Features of Jamuna Kutir
Sector Only for Cottage industries
➢ Convenient EMI
line
Jamuna Swapno: It is a financial product encouraging and aiding in the realization of

entrepreneurial dreams and aspirations.
Table 29: Features of Jamuna Swapno
Sector Only for Micro Enterprise
➢ Convenient EMI
52
➢ Personal guarantee
line
Jamuna Payment Guarantee under SME: It is a guarantee services to facilitate

secure transactions and business dealings for SMEs.
Table 30: Features of Jamuna Payment Guarantee under SME
Purpose To issue payment guarantee on behalf of the borrowers.
Key Features ➢ Guarantee Amount: Max. Tk.200.00 lac
➢ Minimum margin
➢ Personal guarantee
line
4.6 SME Sectors of JBL

Jamuna Bank Limited (JBL) stands as a prominent commercial bank within
Bangladesh, specializing in delivering an extensive array of financial products and
services tailored to empower Small and Medium Enterprises (SMEs). The bank has
established a dedicated SME Division, exemplifying its commitment to addressing the
unique requirements of SMEs through customized loan solutions and an array of
banking services.
Here are the key SME sectors that JBL focuses on and provides specialized support:
53
➢ Agriculture: JBL recognizes the significance of the agricultural sector and
extends a range of loan products to farmers and agricultural businesses. These
include crop loans, livestock loans, and loans for Agro-processing activities. By
doing so, JBL aims to bolster agricultural ventures and contribute to the growth
of this vital sector.
➢ Manufacturing: The manufacturing sector holds substantial importance in the

economic landscape. JBL offers financial support to SMEs operating in diverse
manufacturing domains such as textiles, garments, pharmaceuticals, food
processing, and engineering. Through tailored loans, JBL facilitates the growth
and expansion of manufacturing enterprises, fostering innovation and economic
advancement.
➢ Trade and Commerce: JBL provides financial assistance to SMEs engaged in

trade and commerce activities, encompassing import, export, and wholesale and
retail trade. By offering loans suited to the unique needs of trading enterprises,
JBL actively contributes to the development and sustainability of trade-related
businesses within Bangladesh.
➢ Services: Acknowledging the significant role of the services sector in the

economy, JBL extends financial support to SMEs operating in various service
industries. This includes tourism, hospitality, education, and healthcare sectors.
By offering specialized loans, JBL supports SMEs in these domains to enhance
their services and foster growth and innovation.
JBL's SME loan products are meticulously designed to address the diverse needs of
SMEs at various stages of their growth cycle. The bank offers both term loans, typically
for long-term investment needs, and working capital loans, crucial for day-to-day
operations, ensuring comprehensive financial assistance to SMEs. Jamuna Bank
Limited plays a pivotal role in supporting the SME sector's growth and development in
Bangladesh. Through targeted financial products and non-financial services, JBL is
dedicated to empowering SMEs and driving economic progress within the nation.
54
Figure 2: SME Sectors in Jamuna Bank Limited
Agriculture
Manufacturing
SME Sector in JBL
Trading
Service
4.7 Dedicated SME Branches of JBL

SME Dedicated Branch of Jamuna Bank Ltd is a specialized branch that caters to the
needs of small and medium enterprises (SMEs) in Bangladesh. The branch offers a
range of products and services, such as loans, deposits, remittances, trade finance,
advisory and training, to help SMEs grow and prosper. The branch also has a dedicated
team of experts who understand the challenges and opportunities of the SME sector and
provide customized solutions to meet their requirements. The branch aims to be a one-
stop solution for SMEs, offering them convenience, flexibility and reliability. There are
8 SME dedicated branch of Jamuna Bank Ltd all over the Bangladesh. They are:
➢ JURAIN-SME BRANCH (BRANCH ID:0047)

➢ MUNSHIGONJ-SME BRANCH (BRANCH ID:0054)
➢ CHAPAINAWABGONJ-SME BRANCH (BRANCH ID:0052)
➢ KAZIPUR-SME BRANCH (BRANCH ID:0056)
➢ SHERPUR-SME BRANCH (BRANCH ID:0058)
➢ MADARIPUR SME/KRISHI BRANCH (BRANCH ID:0044)
➢ MOULVIBAZAR-SME BRANCH (BRANCH ID:0068)
➢ CHAR DUMURIA BAZAR, MUNSHIGANJ (Sub-Branch)
55
4.8 Selection criteria for SME Investment
Jamuna Bank Limited (JBL) is a financial institution that places significant emphasis
on specific criteria when considering investments in Small and Medium Enterprises
(SMEs). These criteria serve as guidelines to assess the potential success and
sustainability of a business, ensuring that investments yield fruitful returns and
contribute positively to the overall economy. The outlined factors help the bank make
informed decisions and select businesses that align with their ethos of responsible and
sustainable banking.
➢ Business Experience: JBL looks for established businesses with a minimum of

2 years of operational experience. This requirement signifies the business's
viability and capacity to generate consistent profits, showcasing a sound
business model and operational efficiency. This tenure provides a foundational
understanding of the business's trajectory and stability, giving the bank
confidence in its investment.
➢ Financial Performance: Financial performance is a crucial aspect that JBL

scrutinizes. The bank reviews the financial statements of the potential SME,
analyzing factors such as profitability, revenue growth, and debt levels. This
assessment allows the bank to gauge the financial health of the business,
ensuring that it has the potential for sustainable growth and profitability, which
in turn can guarantee timely repayment of any investment.
➢ Management Team: The strength and capabilities of the management team are
also a significant consideration for JBL. They seek businesses led by
experienced and qualified managers with a clear vision for the future. This
emphasizes the importance of leadership and strategic direction in ensuring the
success and growth of the SME. A competent management team instills
confidence in the bank regarding the efficient utilization of funds and achieving
set objectives.
➢ Market Potential: Market potential is another vital aspect that JBL evaluates.
The bank is interested in businesses operating in growing markets with
56
substantial demand for their products or services. This consideration aligns with
the bank's goal of investing in enterprises with the potential for expansion and
increasing their market share, contributing positively to the economic
landscape.
➢ Social and Environmental Impact: JBL is committed to sustainable banking

and considers the social and environmental impact of the business when making
investment decisions. This aligns with the growing global consciousness
towards sustainability and responsible business practices. Businesses that
prioritize environmental and social responsibility stand a better chance of
receiving investments from the bank.
➢ Furthermore, JBL may give preference to businesses operating in priority

sectors like agriculture, manufacturing, and exports. This strategic approach
aligns with national economic goals and fosters growth in crucial sectors that
contribute significantly to the country's development.
For SMEs seeking investment from JBL, presenting a comprehensive business plan is
vital. This plan should clearly outline the business model, financial projections, and the
strengths of the management team. Being well-prepared to address questions related to
financial performance, market potential, and social and environmental impact can
significantly enhance the chances of being selected for investment. Additionally,
demonstrating a viable business model with the potential for sustainable profits and
articulating a clear vision for the future with the aid of JBL's investment will strengthen
the case for investment. JBL's criteria for SME investment are strategically designed
to ensure that investments are directed towards businesses with the potential for growth,
profitability, and positive impact on society and the environment. By adhering to these
criteria and effectively presenting their businesses, SMEs can enhance their prospects
of securing investment from JBL and furthering their growth and success.
57
4.9 SME Investment Procedure of JBL
Jamuna Bank Limited offers a variety of SME investment products, including:
➢ SME loans: SME loans can be used to finance a variety of business needs, such
as working capital, asset purchase, and expansion.
➢ SME equity investment: Jamuna Bank Limited can also invest equity in SME
businesses. This type of investment is typically reserved for businesses with
high growth potential.
➢ SME trade finance: Jamuna Bank Limited offers a variety of trade finance
products to help SME businesses with their import and export activities.
Figure 3: Type of SME Investment
SME
Investments
SME Equity SME Trade

SME Loans
Investment Finance
Applying for Small and Medium Enterprise (SME) investment from Jamuna Bank
Limited involves a structured process that necessitates thorough preparation and
effective communication. Here's a detailed elaboration of the outlined steps and tips to
optimize your chances of securing the desired investment:
➢ Prepare a Comprehensive Business Plan: To initiate the application process,

crafting a detailed and well-structured business plan is fundamental. Your
business plan should not only highlight your business model, financial
projections, and management team but should also showcase your
understanding of the market, competition, and growth strategies.
58
a. Business Model: Clearly elucidate how your business operates,
generates revenue, and adds value to the market.
b. Financial Projections: Present realistic and data-backed financial
projections that demonstrate your business's growth potential and
profitability over a defined period.
c. Management Team: Provide detailed profiles of your management
team, emphasizing their experience, qualifications, and their
contributions to the business.
➢ Contact SME Banking Division of Jamuna Bank Limited: Obtain the

contact information for Jamuna Bank Limited's SME Banking Division from
the bank's official website. Reach out to them to express your interest in seeking
SME investment and to understand the application process in more detail.
➢ Submit Required Documentation: Upon establishing contact, gather and

submit all necessary documents as per the bank's requirements. These typically
include your financial statements, trade license, tax documents, and any other
relevant business-related paperwork.
➢ Arrange a Meeting with a Bank Representative: Schedule a meeting with a

representative from Jamuna Bank Limited to discuss your business plan and
investment needs. During this meeting, you will have the opportunity to provide
further insights into your business and clarify any queries the bank
representative may have.
➢ Receive and Review Investment Offer: If the application is approved, the

bank will present you with an investment offer. This document will outline the
terms and conditions of the investment, including the amount, interest rates,
repayment structure, and any collateral requirements. Carefully review the offer
and seek legal or financial advice if necessary.
59
Enhance the Approval Chances with Additional Tips:
➢ Well-Written Business Plan: Ensure your business plan is meticulously
crafted, coherent, and persuasive, effectively conveying your business's
potential and growth prospects.
➢ Demonstrate Viability and Profitability: Clearly illustrate that your business

has a viable model capable of generating sustained profits.
➢ Strong Management Team: Showcase a competent and accomplished

management team with a proven history of success, emphasizing their
capability to drive the business forward.
➢ Articulate the Vision: Communicate a compelling vision for the future of your
business and how the investment from Jamuna Bank Limited will play a pivotal
role in realizing these goals.
➢ Sign the Loan Agreement: Upon approval, carefully review and sign the loan
agreement, which will detail the terms and conditions of the loan, encompassing
interest rates, repayment schedules, collateral requirements, and other relevant
provisions.
Meticulous preparation, effective communication, and a thorough understanding of the

bank's criteria and processes are pivotal in successfully securing SME investment from
Jamuna Bank Limited. By demonstrating a strong business proposition, viable business
model, and a well-structured plan for growth, one can enhance his chances of obtaining
the desired investment to propel his business forward.
60
Figure 4: SME Investment Procedure of Jamuna Bank Limited
Prepare a Business Plan
Contact SME Banking Division of Jamuna Bank
Submit Documents
Arrance Meeting with Bank Representative
Receive and Review Investment Officer
Sign the Loan Agreement
4.10 Recovery Procedures of SME Investment

Recovering Small and Medium Enterprise (SME) investments is a critical process for
any financial institution, including Jamuna Bank Limited. The bank has established a
dedicated SME Recovery Division to efficiently manage the recovery of delinquent
loans and investments. The recovery process involves several important steps designed
to facilitate the repayment of the outstanding amount and protect the bank's interests.
➢ Early Intervention and Communication: The Recovery Division initiates the

recovery process by reaching out to the borrower early on to understand the
reasons for delinquency. Open communication is vital at this stage to gain
insights into the borrower's financial situation and to work collaboratively on
finding a feasible repayment solution.
➢ Loan Restructuring and Relief: Understanding the borrower's financial

constraints, the Recovery Division may offer options like loan restructuring or
other forms of relief to help the borrower repay the loan. Restructuring could
involve altering the repayment terms, extending the loan tenure, or adjusting
interest rates to make repayment more manageable.
61
➢ Legal Action, if Necessary: If the borrower is unable to meet the repayment
obligations and efforts for negotiation fail, the Recovery Division may resort to
legal action. This could involve filing a lawsuit against the borrower to recover
the outstanding debt. Legal action serves as a measure to protect the bank's
interests.
➢ Collateral Enforcement or Asset Sale: In cases where the borrower is unable

to repay and the loan is secured with collateral, the Recovery Division may
enforce the collateral by seizing and selling the assets. This sale is intended to
recover the debt owed by the borrower.
Figure 5: Recovery Procedures of SME Investment
Early Intervention and Communication
Loan Restructuring and Relief
Legal Action if Necessary
Collateral Enforcement or Asset Sale
Jamuna Bank Limited is committed to working closely with SME borrowers to ensure
repayment of loans and investments. The bank emphasizes collaboration and
understanding of the borrower's situation to determine the best possible resolution.
However, it is crucial to note that the bank will take necessary actions to protect its
interests if borrowers are unable to meet their repayment obligations.
To help SME borrowers avoid loan delinquency and foreclosure, the bank offers
essential tips:
62
➢ Understand Loan Agreement Terms: Thoroughly review and comprehend the
terms and conditions of the loan agreement before signing it to ensure clarity on
repayment obligations and conditions.
➢ Timely and Complete Loan Payments: Adhere to the agreed-upon repayment

schedule, making payments on time and in full to avoid any penalties or
delinquency.
➢ Communication with Lender: If facing difficulties in making a payment,

promptly inform the lender and maintain an open line of communication to
discuss available options and potential solutions.
➢ Provide Supporting Documentation: Be prepared to provide necessary

documentation supporting requests for relief or restructuring, aiding the lender
in understanding your financial situation better.
➢ Collaborative Repayment Plan: Work collaboratively with the lender to create

a repayment plan that is reasonable, affordable, and aligns with your financial
capacity.
SME borrowers struggling with loan repayment are encouraged to reach out to Jamuna
Bank Limited's SME Recovery Division. The division is dedicated to working with
borrowers to find mutually beneficial solutions, aiming to resolve financial difficulties
while safeguarding the interests of both parties. Effective communication and proactive
engagement are key aspects of successful loan recovery and resolution for SME
borrowers.
4.11 Responsibilities of SME Credit Officers

Small and Medium Enterprise (SME) Credit Officers at Jamuna Bank Limited hold a
crucial position with responsibilities spanning loan origination and processing as well
as loan portfolio management. These responsibilities are fundamental in ensuring the
effective and sustainable growth of SMEs in Bangladesh.
63
Loan Origination and Processing:
➢ Creditworthiness Assessment: SME Credit Officers meticulously review
business plans, financial statements, and relevant documentation to evaluate the
creditworthiness of potential borrowers. This involves a thorough analysis of
the business's financial health, its ability to generate profits, and the viability of
the proposed loan.
➢ On-Site Visits and Business Understanding: Conducting site visits and

meeting with business owners are vital steps to comprehend the actual
operations and financial projections of the SMEs. This firsthand understanding
helps in making informed decisions regarding loan approvals and structuring.
➢ Loan Agreement Negotiation and Structuring: Credit Officers negotiate and

structure loan agreements that strike a balance between the bank's risk tolerance
and the specific needs of the borrower. This involves designing terms and
conditions that are mutually beneficial and sustainable for both parties.
Loan Portfolio Management:

➢ Performance Monitoring and Early Problem Identification: Credit Officers
continuously monitor the performance of loans, promptly identifying any
potential issues that may arise. Early detection enables timely intervention and
effective resolution, minimizing risks and ensuring loan health.
➢ Action Plan Development with Borrowers: In case of identified issues, Credit

Officers collaborate with borrowers to develop and implement action plans.
These plans aim to address challenges and get the loan back on track, supporting
the borrower's ability to meet their obligations.
➢ Delinquent Loan Management and Recovery Measures: Managing

delinquent loans is a critical aspect of loan portfolio management. Credit
Officers take appropriate recovery measures when necessary, ensuring that the
bank's interests are protected while striving for optimal resolutions with the
borrowers.
64
➢ Financial Advice and Support to Borrowers: Offering financial advice and
support to borrowers is a proactive step to help them manage their businesses
effectively. This guidance contributes to the growth of their enterprises and
assists in timely loan repayments.
Additional Responsibilities:
➢ Product and Service Development: SME Credit Officers may be involved in
developing and implementing new SME loan products and services to cater to
the evolving needs of SMEs.
➢ Market Research and Analysis: Conducting market research and analysis

allows Credit Officers to identify new lending opportunities and trends within
the SME sector, facilitating informed decision-making.
➢ Representation and Collaboration: Representing the bank at SME industry

events and conferences and collaborating with other bank departments enhance
the range and quality of services offered to SME borrowers.
SME Credit Officers at Jamuna Bank Limited play a pivotal role in propelling the
growth of SMEs in Bangladesh. By ensuring access to finance, providing financial
advice, and actively managing loan portfolios, they significantly contribute to job
creation, economic growth, and the overall development of the country. Their efforts
align with the bank's commitment to fostering a robust SME sector, vital for national
prosperity and progress.
65
4.12 SME Loan Disbursement of Jamuna Bank Limited
Table 30: SME Loan Disbursement of Jamuna Bank Limited
(Amount in Million)
Year Total Loan Total SME Loan Percentage of SME Loan
Amount over Total loan
2018 142250 58289.42 10.88 %
2019 165400 47256.9 35.24 %
2020 177278.78 47564.18 26.66 %
2021 162658.43 22510 29.24 %
2022 174824.78 16247.8 12.88 %
Source: Annual Reports of Jamuna Bank Limited
Figure 6: Total SME Loan amount of Jamuna Bank Limited in Last Five Years
Total SME Loan

70000
60000
50000
40000
30000
20000
10000
0
2018 2019 2020 2021 2022
Total SME Loan
Interpretation: The data on SME (Small and Medium-sized Enterprises) loan

disbursement amount illustrates the changing trends in financing for SMEs over the last
five years. In 2018, there was a substantial increase of 58,289.42 million BDT,
indicating a significant boost in loans amount directed towards SMEs. In 2019, while
still experiencing growth, saw a slightly lower increase of 47,256.9 million BDT,
suggesting a steady but slightly moderated pace. In 2020, there was a marginal rise of
47,564.18 million BDT, showcasing a continued effort to support SMEs. However, the
amount slowed considerably in 2021, with an increase of 22,510 million BDT, signaling
66
a potential shift in financing dynamics. The last year, 2022, reflected a further decline
in amount, with an increase of 16,247.8 million BDT, indicating a nuanced trend in
SME loan disbursement.
Figure 7: Percentage of SME Loan Over Total Loan in Last Five Years
Percentage of SME Loan over Total loan

40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2018 2019 2020 2021 2022
Percentage of SME Loan over Total loan
Interpretation: The SME loan disbursement percentages from 2018 to 2022 illustrate
the allocation trends in financing for Small and Medium-sized Enterprises (SMEs)
during this period. In 2018, SMEs received a relatively modest share of 10.88%,
indicating a lower allocation of loans to this sector. However, there was a significant
surge in 2019, with SMEs obtaining 35.24% of the loans disbursed, signifying a
substantial increase in funding directed towards supporting these enterprises. In the
subsequent years, 2020 and 2021, the percentage of loan disbursement to SMEs
remained relatively high, at 26.66% and 29.24%, respectively, suggesting continued
emphasis on SMEs within the lending landscape. However, in 2022, the percentage
dropped to 12.88%, indicating a decrease in the proportion of loans allocated to SMEs
compared to previous years, possibly due to shifting priorities or changes in economic
conditions.
67
4.13 SME Loan Growth of Jamuna Bank Limited
Table 31: SME Loan Growth Rate of Jamuna Bank Limited in Last Five years
Years SME Loan Growth Rate
2018 276.58%
2019 -18.93%
2020 0.65%
2021 -52.67%
2022 -27.82%
Figure 8: SME Loan Growth of Jamuna Bank Limited
Loan Growth of JBL

300.00%
250.00%
200.00%
150.00%
100.00%
50.00%
0.00%
2018 2019 2020 2021 2022
-50.00%
-100.00%
Loan Growth of JBL
Interpretation: The SME loan growth rates for Jamuna Bank Limited over the years
2018 to 2022 present a fluctuating trend. In 2018, there was an extraordinary surge of
276.58%, suggesting an aggressive push in SME loan provision, possibly driven by
strategic initiatives or increased demand. However, in 2019, there was a sharp decline
of -18.93%, indicating a contraction in the growth rate, potentially due to reassessment
or recalibration of lending strategies. The following year, 2020, witnessed a minimal
growth of 0.65%, suggesting stability or a cautious approach in SME lending.
Subsequently, in 2021 and 2022, there were significant contractions with growth rates
of -52.67% and -27.82%, respectively, revealing a substantial pullback in SME loan
growth, potentially influenced by shifts in risk assessment or economic conditions.
68
These diverse growth rates reflect the dynamic nature of SME lending strategies and
market conditions.
4.14 Industry Wise SME Loan Disbursement of Jamuna

Bank Limited
Table 32: Industry Wise SME Loan Disbursement of Jamuna Bank Limited
(Amount in Million)
Year Service Trading Manufacturing
2018 33966.82 16173.78 8148.82
2019 19769.7 17431.66 10055.54
2020 17411.26 17247.71 12905.21
2021 3005.09 14206.06 5298.85
2022 1949.8 10236 4062
Figure 9: Industry Wise SME Loan Disbursement
Industry Wise SME Loan Disbursement

40000
35000
30000
25000
20000
15000
10000
5000
0
2018 2019 2020 2021 2022
Service Trading Manufacturing
Interpretation: The industry-wise SME loan disbursement data for Jamuna Bank
Limited from 2018 to 2022 provides insights into the bank's focus in supporting various
sectors. In 2018, the service industry received a significant share of SME loans,
amounting to 33,966.82 million, followed by trading and manufacturing sectors.
However, in 2019, the trading sector saw a considerable increase in SME loans, totaling
69
17,431.66 million, overtaking the service industry. The manufacturing sector also
received a substantial amount. In 2020, SME loans were relatively evenly distributed
among the trading, manufacturing, and service sectors. In the subsequent years, 2021
and 2022, there was a notable decline in SME loans disbursed, particularly in the
service industry. The manufacturing sector maintained a consistent share of SME loans,
while trading saw a decrease. This data suggests shifting priorities in SME loan
disbursement over the years, likely influenced by economic dynamics and sectoral
performance.
Table 33: Industry Wise SME Loan Growth

Year Service Trading Manufacturing
2018 75.14% 77.28% 1961.81%
2019 7.78% 23.40% -41.80%
2020 -1.06% 28.34% -11.93%
2021 -17.64% -58.94% -82.74%
2022 -27.95% -23.34% -35.12%
Figure 10: Industry Wise SME Loan Growth of Jamuna Bank Limited
Industry Wise SME Loan Growth

2500.00%
2000.00%
1500.00%
1000.00%
500.00%
0.00%
2018 2019 2020 2021 2022
-500.00%
Service Trading Manufacturing
70
Interpretation: The industry-wise SME loan growth rates for Jamuna Bank Limited
from 2018 to 2022 reflect varying trends across different sectors. In 2018, the
manufacturing sector experienced an extraordinary growth rate of 1961.81%,
showcasing a substantial surge in SME loans. The service and trading sectors also saw
robust growth rates of 75.14% and 77.28%, respectively. However, in 2019, the
manufacturing sector faced a significant decline in growth by -41.80%, while the
service and trading sectors had more moderate growth rates of 7.78% and 23.40%,
respectively. In the subsequent years, 2020 to 2022, all sectors witnessed negative
growth rates, indicating a contraction in SME loan growth across the board. The
manufacturing sector experienced the most substantial decline, with growth rates of -
11.93%, -82.74%, and -35.12% in 2020, 2021, and 2022, respectively. These
fluctuations highlight the dynamic nature of SME loan growth, influenced by economic
conditions and sector-specific factors.
4.15 Comparison of Five Banks in Last Five Years

Table 34: Comparison of Five Banks in Last Five Years in SME Loan
Disbursement
(Amount in Million)
Year 2018 2019 2020 2021 2022
Jamuna Bank 58289.42 47256.9 47564.18 22510 16247.8
Premier Bank 50094.1 52669.8 60241.7 54349 63751.38
Dhaka Bank 34521.3 38720 48400 54692 60658.9
National Bank 34750 38493 40237 46002 53822.34
Brac Bank 101470 134185 134890 135710 190200
Source: Annual Reports of Jamuna Bank Limited, Premier Bank Limited, Dhaka Bank
Limited, National Bank Limited, Brac Bank Limited
71
Figure 11: Comparison of Five Banks in Last Five Years in SME Loan
Disbursement
SME Loan Disbursement

200000
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
2018 2019 2020 2021 2022
Jamuna Premier Dhaka National Brac
Interpretation: The comparison of SME loan disbursements across five banks over the
last five years, from 2018 to 2022, reveals distinct patterns. In 2018, BRAC Bank had
the highest SME loan disbursement at 101,470 million, followed by Jamuna Bank,
Premier Bank, and National Bank. However, in subsequent years, BRAC Bank
consistently maintained the leading position, with significant growth each year. Jamuna
Bank, Premier Bank, and Dhaka Bank also showed steady growth, but not as substantial
as BRAC Bank. National Bank exhibited consistent growth, gradually catching up to
other banks. In 2022, BRAC Bank had the highest SME loan disbursement at an
impressive 190,200 million, highlighting its prominent role in supporting small and
medium-sized enterprises. Overall, the data underscores the evolving landscape of SME
loan disbursement among these banks, with BRAC Bank exhibiting remarkable growth
and influence in recent years.
72
Findings
After a thorough analysis of various data pertaining to Jamuna Bank Limited, several
key strengths and weaknesses were identified, constituting the major findings as
follows:
➢ Jamuna Bank Limited has exhibited substantial growth in profit and deposits,
establishing a positive reputation within the country's banking industry.
➢ Jamuna Bank Limited maintains a conducive and motivating organizational
culture, promoting transparent communication and collaboration between
management and employees.
➢ Jamuna Bank Limited is effectively embracing the era of digital money with
automation processes, showcasing adaptability to technological advancements.
➢ Jamuna Bank Limited offers prompt and high-quality service, distinguishing
itself from other banks in the country.
➢ The centralized decision-making process of JBL may hinder agility and
innovation in responding to market dynamics.
72
Recommendation
The overall analysis reveals that Jamuna Bank Ltd. exhibits a limited sophistication in
SME Banking Activities. To address the identified challenges in SME activities, a set
of recommendations is proposed.
➢ There is an opportunity in expanding the bank's presence in retail banking,

considering the increasing population's interest in consumer accounts.
➢ By broadening foreign trade activities and setting up more branches, the bank
can extend its reach and capture a larger customer base both nationally and
internationally.
➢ Develop a well-defined mission statement and strategic plan to guide the bank's
future direction and operations.
➢ Implement aggressive marketing campaigns to increase the bank's visibility and
attract more customers.
➢ Upgrade digital banking capabilities and ensure modernization in digital
financing for enhanced customer experience.
➢ Stay informed and adapt to the evolving regulatory environment, especially
regarding loan rates and policies.
73
Conclusion
As a third-generation private commercial bank, Jamuna Bank Ltd. has a good
possibility to be a leading bank in the economy of Bangladesh. To achieve that, they
need to find out the areas where they can expand. In recent years, their performance in
SME sector compared to other banks is not so much satisfactory, but they have the
possibility to be one of the best banks in SME sector.
Jamuna Bank Limited displays substantial strengths in SME banking. These include
consistent growth in profit and deposits, a positive reputation in the banking industry,
efficient service delivery, and a proactive approach to digitalization. The bank's
organizational culture, known for being motivating and transparent, along with a team
of experienced leaders, contributes to its success. It also enjoys a positive perception
for delivering high-quality services.
SME is a successful sector in Bangladesh which can be important for all the banks in
the near future. All the banks are always trying to maximize their SME collection. That
is why, to keep up with other banks in Bangladesh, Jamuna Bank Ltd. (JBL) need to
know the problems of the future SME clients and try to find the best possible way which
will make good connection with their new clients and achieve their goals.
74

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Internship Report

Date of Submission: 18th October, 2023

Subject: Submission of the Internship Report on SME Banking Activities of Jamuna

I would like to extend my deepest appreciation to all my faculty members of

This is to certify that, Mobasshira Haque, National University Registration Number:

Ms. Fahmida Rawshan

1.2 Objectives of the report

1.3 Methodology of The Report

1.5 Limitations of the report

2.3 Vision of JBL

2.4 Mission of JBL

2.5 Objectives of JBL

2.6 Core Values

➢ Integrity and Honesty: They continue to be responsible, ethical, sincere

2.7 Ethical Guidelines

Dealing with Regulations

Dealing with Employees

2.8 Organizational Structure

2.10 Products and Services

Table 4: Islamic Banking Mode of Jamuna Bank Limited

Major Scheme Deposit Deposit

➢ NRB banking: JBL facilitates the non-resident Bangladeshis (NRBs) by

Table 6: NRB services of Jamuna Bank Limited

Deposit Schemes for NRB NRB Pension Term Deposit Scheme

➢ Corporate banking: JBL provides various corporate banking services to its

Table 7: Foreign Exchange services of Jamuna Bank Limited

2.11 Corporate Social Responsibility

➢ Jamuna Bank Foundation introduced scholarships for unprivileged & disabled

➢ They have established 13 nos. Sewing Training Center for underprivileged

➢ they have established a Free primary School for slum-dwelling children,

2.12 SWOT Analysis of Jamuna Bank Limited

3.2 Background of SME Banking

3.3 Definition of SME as per Bangladesh Bank

3.3.2 Definition of Small Enterprise:

Table 9: Criteria of Small Enterprise according to Bangladesh Bank

3.3.3 Definition of Medium Enterprise:

Table 10: Criteria of Medium Enterprise according to Bangladesh Bank

The government of Bangladesh is committed to supporting the growth of the SME

(Source: Bangladesh Economic Review 2022)

However, SMEs in Bangladesh still face a number of challenges, such as access to

➢ Women Entrepreneurs Association of Bangladesh (WEAB)

3.5 Minimum Requirement SME Financing according to

Minimum Eligibility for Loan

3.6 The Importance of SME in Bangladesh

➢ Economic growth: SMEs play a vital role in the Bangladeshi economy,

➢ Poverty alleviation: SMEs play a vital role in poverty alleviation by providing

➢ They help to diversify the economy by investing in a wide range of sectors.

3.7 Financing SME Sector

Recent data on the refinance scheme for SMEs in Bangladesh:

Amount Refinanced Tk 3,187 crore (Up to December 2022)

3.7.1 Eligibility criteria for the refinance scheme

3.7.2 Benefits of the refinancing scheme

➢ Working Capital: Working capital is the lifeblood of any business, especially

➢ Purchasing of Capital Machinery: Investing in capital machinery is critical

➢ Delivery Van/Transport for Business Purposes: For SMEs involved in

➢ Renewing Office/Business Premises: Maintaining a conducive and functional

➢ Purchase of Commercial Land, Possession of New Venture: Acquiring

4.3 Eligibility of Borrower

➢ Age Limit: The borrower must be between 20 and 60 years old.

➢ Financial Statements: The borrower must provide the following financial

4.4 Importance of SME Banking in Bangladesh

➢ Major Contributor to the Economy: SMEs constitute a substantial portion of