Project on Compared Between Al-Arafah Islami Bank Ltd. and MBL: There Overall Banking Concept and There Performance in Financial Sectors

Abstract

The Banking industry is one of the most attractive industries in Bangladesh. Every year, this industry is growing at a higher pace. With this growth the modernization of banking systems has also improved a lot. The entrance of multinational banks in the country and simultaneously the emergence of Private Commercial Banks have made this business very competitive AL-ARAFAH ISLAMI BANK LIMITED has been incorporated on 27th August 1995 in Dhaka, Bangladesh as a public limited company with the permission of the Bangladesh Bank; AIBL commenced formal commercial banking from the June 2, 1996. Credit Management is mainly concerned with the credit disbursement and recovery. In order to strengthen credit Management and recovery position of the loans/advances by bank it has been decided by AIBL to follow some tools and technique for credit appraisal. With the use of such tools AIBL credit Manag~ment has shown their efficiency. MBL is a unique characteristic in its loan Management. To make it sure that there will be no bad loan in its loan portfolio, MBL established a loan monitoring and supervision cell headed by an Assistant Vice president under the nursing of its chief adviser Lutfar Rahaman Sharkar. They frequently visit customer premises/business whether the loan amount which is taken is used properly or not, sometimes it happens that customers need more fund or other type facilities to run its business profitably. The monitoring authority takes necessary steps to meet the customers need. I have focused and analyzed on credit management process of Mercantile bank Limited. MBL as a new bank in Bangladesh but its contribution socio-economic development of Bangladesh greater significant. Though my topics were connected on credit management I tried to identify the process of disbursement loan, performance and problems of the bank as a whole. I have found a fewer number of factors impede the achievement of ultimate goals of MBL. It is not easy to find the solution for the inexperience's researchers like me. But I do believe that suggestion mention in below will obviously increase the efficiency of MBL. Some of this measure will be needed for long term to be implemented and others are short term. In this report I mainly focused to appraise on AL-ARAFAH ISLAMI BANK & Mercantile Bank Limited. I tried to give an overview of the principal activities and performance of AL-ARAF AH ISLAMI BANK LIMITED & Mercantile Bank. Lastly I sort out the problems and tried to give some solutions to overcome those problems.