GVHCCCHG

Course: BUS 498 (Internship)
Section: 97
Company: IDLC Finance Limited
Department: Credit Risk Management – Consumer Division
Submitted to -
Sheikh Mohammad Rabby
Lecturer, School of Business
North South University
Submitted by -
Md Tahmidul Huq
Student ID: 1120212030
Date of Submission: 17th August, 2014

Letter of Transmittal
August 17, 2015
Mr. Sheikh Mohammad Rabby

Faculty Member
School of Business,
North South University
Subject: Submission of Internship Report
Dear Sir:
It is my pleasure to submit this report, which has been prepared as per the requirement of the
Course: BUS 498. I have steadfastly followed your guidelines and as well as the rules set by the
host organization IDLC Finance Limited to prepare this report. While doing my three months
long internship in Credit Risk Management Department of Consumer Division of the company I
have learned about various aspects of Credit Risk which is more or less inherent in almost all
lending institutions. Moreover I have developed some knowledge on mitigating such Credit
Risks while dealing with consumer loan applications. In general my internship in this
organization was an eye opener for me. It has enabled me to bridge the gap between theoretical
knowledge and practical aspects of corporate world. Working in IDLC for three months I have
received an essence of the issues and matters a financial institution may have to deal with. It was
also a great opportunity for me to harness my skills and eliminate my shortcomings.
This report is based on my workings, experience and observations during my internship in IDLC
Finance Limited. To prepare this I have conducted both external and internal analysis. Despite
facing some difficulties and obstacles I have tried to be as much detail oriented as possible. If
you need any further elaboration on any issue, I shall be very glad to oblige.
Sincerely Yours
Md Tahmidul Huq
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Acknowledgement
I want to start this report acknowledging my gratefulness to the almighty Allah for giving me the
strength and ability to prepare this report. Then my most sincere thanks go to my honorable
Faculty Advisor, Mr. Sheikh Mohammad Rabby for his continuous direction, suggestions and
valuable feedback in completion of this report. Without his endless support and encouragement
this report would not have seen daylight. I am also greatly indebted to my Internship Supervisor,
Mr. Reaz Hassan Awwal, who has guided and supported me with great sincerity and patience
throughout my internship period. Without his guidance, preparation of this report would not have
been possible. Very special thanks go to Mr. Sakibul Huq Sakib and Mr. Nazran Kabir, the two
probationary officers of the department for giving me hand to hand training on the tasks I had to
perform during my internship in the organization. Last but not the least I want to express my
gratitude to all the persons in the department. Due to their solemn assistance I have been able to
learn a lot of things and present them in this report.
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Executive Summary
The report I am submitting is for my internship in IDLC Finance Limited, the largest Nonbank
Financial Institution (NBFI) of the country. The principal purpose of this report is to demonstrate
my internship experience which would enable me to understand the operations, functionality and
overall efficiency of the department. The department I was assigned was Credit Risk
Management Department of Consumer Division. This department’s principal tasks were to asses
and mitigate credit risk – a risk that underlies in the business of any lending institution. My
department had to deal consumer client segment i.e. individual loan applicants. In this report a
brief description has been given about the products and services, teams and persons, their
reporting relationship, and the tasks of my department. All the information presented in these
sections has been gathered based on my internal and external analysis. For internal analysis I
interviewed a senior manager and consulted with the persons in my department. For external
analysis I took help from various sources e.g. company website and company annual report. In a
separate section my outcome of Porter’s Five Factor Analysis for IDLC Finance Limited has
been presented. I have accomplished this with a view to determine the company’s position in the
banking industry. This report also encompasses particular sections which are dedicated to portray
my personal viewpoints, experiences, tasks, observations and realizations from my internship in
this company. These sections are Personal Development, Lessons Learnt from Internship,
Difficulties Faced during my Internship and how I have overcome them, Differences between
Expectation and Reality, Influence of Internship on my Career Plan. I have concluded this report
providing some recommendations for the department I have worked in.
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Table of Contents
Introduction………………………………………………………………………………….8 – 10
Scope of the report…………………………………………………………………………….8
Objectives of the report………………………………………………………………………..9
Limitations of the report……………………………………………..………………………10
Company Overview………………………………………………………………………..10 – 21
Historical Background…………………………………………………………..…………...10
About the Company………………………………………………………………………….10
Vision………………………………………………………………………...………………11
Mission……………………………………………………………….…………………..…..11
Strategic Objectives…………………………………………………………………...……..12
Core Values……………………………………………………………..……………………12
Business Overview…………………………………………………...………………………12
Organizational Structure………………………………………………………….………….15
Shareholding Structure……………………………………………………………….………16
Service Suite of IDLC Finance Limited……………………………………………………..17
Milestones of IDLC Finance Limited………………………………………………..………20
Present Industry Overview in light of Porter’s Five Forces Model……………………………..22

CRM-CD: The Department I have worked in……………………………………...………24 - 34
Teams and Persons…………………………………………………………….……………..24
Products and Services………………………………………………………………………..27
Steps Involved in Credit Risk Management…………………………………………..……..33
Reporting Relationship………………………………………………………………………34
My Tasks, Assignment and Contribution in the Organization………………………………… 34

Lessons Learnt & Experience gained from Internship……………………………………...…..43
Interactions with my Supervisor & Coworkers……………………………………………….....45
Difficulties faced during my Internship and how I have overcome them…………………….…46
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Differences between Expectation and Actual Experience from Internship………………….….47
Influence of Internship in my Career Plan…………………………………………………..…..48
If I had to redo the Internship what I would do differently? ........................................................49
Recommendations………………………………………………………………………….……50
Conclusion ……………………………………………………………………………...………51
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List of Figures, Tables & Diagrams
Figures:
Figure No. Caption of Table Page No.
1 Shareholding Structure 17
2 A glimpse of Pipeline 35
3 A glimpse of CPV Pipeline 37
4 A glimpse of DISR 40
5 Branch wise data at a glimpse 41
Tables:
Diagram Topic Page No.
Gulshar Cluster at a glimpse 25
Dilkusha Cluster at a glimpse 26
Car Loan Team at a glimpse 26
Diagrams:
Diagram Topic Page No.
Organizational Structure 15
Steps in Credit Risk Management Process 33
Reporting Relationship in CRM-CD 34
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Introduction:
This report has been prepared as a requirement for the completion of the BBA program under
School of Business, North South University. I have prepared the report based on my three
months long internship program in IDLC Finance Limited. While preparing this report I have
used some practical information which I have gathered more or less from my day to day works in
the company. In my report I have focused mainly on the analysis of activities, performance and
major business affairs of the company. Since I was placed in the Credit Risk Management
Department of Consumer Division of IDLC for my internship, this report has encompassed a
brief rundown on various functions and operations of the department. During my internship I got
myself oriented with various issues and aspects of Credit Risk Management as well.
One of the vital factors upon which success of a business depends is the magnitude and type of
risk it is exposed to. Risk refers to the element of uncertainty or possibility of loss that prevail in
any business transaction in any place, in any mode and at any time. In financial arena, the risks
that an enterprise may possibly face can be divided into several categories e.g. Credit Risk,
Operational Risk, Market Risk and Other Risk. Credit Risk is actually the possibility that a
borrower or counterparty will fail to meet agreed obligations. According to recent research
publication, globally, more than 50% of total risk elements in banks and Financial Institutions
are Credit Risk alone. Credit Risk is prevalent for financial institutions irrespective of their
customer segment – Corporate, SME or Consumer. So a very crucial task for any financial
intuition is efficient management of Credit Risk. In maximum cases such Credit Risk related
issues are dealt by a specialized a department of the respective financial institution and it is
called Credit Risk Management Department.
Scope of the Report:

This report can be divided into two major parts. The first part attempts to present IDLC
Finance Ltd. highlighting its various aspects. On this regard it starts with shedding some light
on the company’s historical background, its shareholding structure, organizational structure,
mission, vision, strategic objectives and core values. A special importance has been attached
with the description of various divisions of the company and suits of services provided by
them. In an attempt to figure out the present industry scenario of IDLC Finance Limited the
researcher has accomplished Porter’s Five Forces analysis. In addition to these a separate
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section of this part sketches the key milestones achieved by the company since its inception.
In the second part all the sections have been presented based on the viewpoint, observations,
findings and experience of the researcher. Under this part there are several subsections e.g.
my tasks, assignment and contribution in the organization, lessons learnt and experience
gained from internship etc. Some other sections of this part are difficulties faced during
internship and ways of overcoming them, influence of internship on career plan etc. This
report is concluded after providing some possible recommendations for improving the
efficiency and affectivity of the department’s works. In the Appendix twelve journals have
been placed and each of them depicts the researcher’s weekly works, learning and
achievements, observation and notable incident (if any).
Objectives of the Report:

The objectives of this report can be classified into two categories:
 General Objective:
The general objective for preparing this report is to fulfill the requirement of the course:
BUS 498 (Internship) under the supervision of my faculty advisor Mr. Sheikh
Mohammad Rabby. Another objective is to present my three month internship experience
in IDLC Finance Ltd. through a formal report.
 Specific Objective:
The specific objectives of this report include the following:
 To develop and present a brief idea about the operations and business involving
‘Consumer’ client segment of the concerned organization.
 To get acquainted with the issues involving Credit Risk Management of the
concerned financial institution and present them in this report.
 To identify the sources of risks, risk assessment and mitigation methods.
 To learn and understand the management of consumer portfolio which encompasses
Home Loan, Car Loan, and Personal Loan.
 To get insight of the lending policies and strategies of the organization.
 To get some knowledge about how the clients in Consumer group are segmented and
how it affects lending decisions.
 Get to know about some parameters e.g. DBR (Debt to Burden Ratio), LTV (Loan to
Value Ratio) that vitally come into play in loan sanction or rejection decisions.
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 Providing recommendations for improving the efficiency of my department.
Limitations of the report:

Although I have tried my best to prepare this report with maximum possible effort and
dedication there still exists some limitations of this report. They are as follows:
 The prime limitation was time constraint. I have learned a lot of things during my
internship. However it was not enough for me to learn and develop knowledge about all
the activities and operations of the department. Hence I was unable to conduct more in-
depth and detail oriented analysis and include that in my report.
 Every organization maintains its own secrecy that is not revealed to external world. IDLC
Finance Limited was no exception to this. Some of my colleagues did not disclose
enough information for the sake of confidentiality of the organization. In a few other
cases, I was not allowed to share some sensitive and confidential information of my
department due to business secrecy.
Company Overview:
Historical Background:
IDLC Finance Limited, the first leasing company of Bangladesh, was established in 1985. Its
birth was actually a collaborative effort between several local and multinational financial
institutions e.g. International Finance Corporation (IFC), German Investment and Development
Company (DEG), Kookmin Bank, Korea Development Financing Corporation, The Aga Khan
Fund for Economic Development, The City Bank Limited, IPDC of Bangladesh Limited,
Sadharan Bima Corporation. With the evolution of this company the initial foreign shareholding
of 49% was gradually being withdrawn. The local sponsors were taking the shareholding
positions of the company and finally in 2009 there was no foreign shareholding of the company.
About the Company:

IDLC Finance Ltd. is the first ever leasing company in Bangladesh. Although the company
started its journey as a leasing company, with the passage of time it has successfully diversified
its products and services by penetrating into different untapped client segments. Now IDLC
Finance offers a wide range of loans, deposits and capital market products and services to the
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corporate, consumer and SME client segments. The company is armed with two of its wholly
owned subsidiaries – IDLC Investments Ltd. and IDLC Securities Ltd. to perform its capital
market operations successfully and efficiently. Today, this is the leading multi-product Non-
Banking Financial Institution in Bangladesh with 27 branches and over 800 staff spread all over
the country. The company has an Authorized Capital of BDT 4,000,000,000/- (400,000,000
shares of BDT 10 each) and Paid up Capital of BDT 2,513,700,000 (251,370,000 ordinary shares
of BDT 10 each). Throughout its journey IDLC has always thrived to provide its clients the best
financial solution effectively, efficiently and ethically. The company has been awarded the “A+”
rating by Credit Rating and Information Services Ltd. (CRISL), the highest rating for any
financial institution, sofa.
The IDLC Group has always been a standard bearer for the financial sector in terms of corporate
governance and statutory compliance. The Group is highly respected by its clients, peers,
employees and regulators for its professional pool of resources, its progressive and enabling
work environment, and its strong ethical practices. In 2010, the IDLC Group committed to
sustainable business by becoming a member of the Bangladesh CSR Centre, the United Nations
Global Compact (UNGC), and finally, the United Nations Environment Program Finance
Initiative (UNEP FI). It has also been awarded the first prize for the “Best Published Accounts:
by Institute of Chartered Accounts of Bangladesh (ICAB).”
With its diverse and multitude products and services the company is catering the diverse and
unique financial needs of both individual and SME businesses. With its skilled and competent
employees the company is experiencing rapid growth in its diverse clientele. Thus IDLC Finance
Limited is making remarkable footprints in the economic growth of the country.
Vision:
We will be the best financial brand in our country.
Mission:
We will focus on quality growth, superior customer experience and sustainable business
practices.
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Strategic Objectives:
 Grow and develop our talent pool
 Fully leverage the new core banking platform
 Optimize distribution point
 Grow and diversify funding sources
 Grow sales and service capabilities in the Consumer Division
 Aggressively grow the SME portfolio
 Focus on top-tier clients in the Corporate segment
 Consolidate capital market operations and enhance capabilities
 Embrace internationally-accepted corporate governance and sustainable business practices
Core Values:
 Integrity
 Customer Focus
 Trust and Respect
 Equal Opportunity
 Eco-friendly
 Passion
 Simplicity
Business Overview:
The company accomplishes its diverse business through its four arms – SME, Consumer,
Corporate and Capital Markets.
I. SME
This division is dedicated to provide specialist lending to small and medium-sized businesses
across a broad range of industries including steel, cement, light engineering, plastics and textiles,
among others, geographically spread across Bangladesh. This division provides a broad range of
services e.g. term loans, working capital loans and lease financing to satisfy diversified customer
requirements. Moreover this division customizes their services if necessary. The division also
supports and encourages women entrepreneurship by providing them loans at attractive
covenants.
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2014 2013
Portfolio Size (In Taka) 17,905 million 14,334 million
Disbursements (In Taka) 12,053 million 10,392 million
Income from Operations (In Taka) 1,224 million 844 million
Client Base 7,619 6,638
II. Consumer
The Consumer division is focused in offering retail financial services. Its financial products
encompass Home Loan, Car Loan, and a small portion of Personal Loan and Loans against
Deposits. This division is currently enjoying highest market shares and growth rates within the
Home Loan industry of Bangladesh. This arm of the company is also actively engaged in
mobilizing deposits through multiple retail savings products with varying interest rates and
maturities.
2014 2013
Income from Operations (In Taka) 975 million 660 million
Client Base 13,757 12,694
Total Deposit Base (In Taka) 35,241 million 29,164 million
Total Deposit Customer Base 6,355 6,681
III. Corporate
The principal function of the Corporate Division is to provide quality service to financial
institutions across the country in financial matters. Amongst its diversified array of services lease
financing, term loans and financing options for capital expenditure etc. are mentionable. In
addition to these this division of the company also offers Structured Finance (SF) solutions
which include corporate bond issuance and debt syndication.
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2014 2013
Income from Operations (In Taka) 385 million 354 million
Client Base 244 248
IV. Capital Markets

IDLC Finance Ltd. accomplishes its capital market operations through two of its wholly-owned
subsidiaries – IDLC Securities Ltd. and IDLC Investments Ltd. These two subsidiaries provide
all sorts of trading services to their customers. Their robust trading facilities enable them to offer
best execution experience to their broad and diversified client base. Underwriting, primary
issuance and merchant banking are its other major services. The division has recently initiated
Discretionary Portfolio Management services. They are paying extra attention to grow this
portfolio especially with their Consumer Division via inter-divisional synergistic opportunities.
IDLC Securities Ltd.

2014 2013
Income for Operations (In Taka) 176 million 132 million
Profit After Tax (In Taka) 39 million 60 million
IDLC Investments Ltd.
2014 2013
Income for Operations (In Taka) 79 million -92 million
Profit After Tax (In Taka) 53 million -213 million
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Board of Directors
Audit Committee Executive Committee
CEO & Managing Director
SME Division CMO & CFO
Credit Evaluation Committee

Supplier Finance Corporate Division
Organizational Structure:
Finance
11 Branches
Structured Finance
Corporate Affairs
2 Branches
Consumer Division
1 Branch
Treasury
Human Resources
7 Branches
Strategic Planning
Internal Control &
Compliances IDLC Securities Limited
Administration
Credit Risk Management 10 Branches
Operations
Special Asset
IDLC Investments Limited
Management
Credit
Information Technology Administration
CSR Service Delivery
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Marketing
Communications
Shareholding Structure:
The shareholders of IDLC Finance Ltd. can be divided into two broad categories – Sponsors/
Directors and General Investors. General Investors can be subdivided into two different
categories – Institutional Investors and Individual Investors.
Number of % of total
Sl. No. Name of Shareholder
Shares shares
1 Sponsors / Directors
The City Bank Limited 50,283,256 25.00

Transcom Group 26,812,355 13.33
Eskayef Bangladesh Limited 16,087,500 8.00
Transcraft Limited 8,070,418 4.01
Bangladesh Lamps Limited 2,654,437 1.32
Sadharan Bima Corporation 15,321,331 7.62
Mercantile Bank Limited 15,082,031 7.50
Reliance Insurance Company Ltd. 14,076,562 7.00
Subtotal 121,575,525 60.45
2 General
Institutions other than Sponsors/ Directors

Bangladesh Fund 6,432,600 3.20
Other Institutions 25,832,479 12.85
Subtotal 32,265,079 16.05
Individuals:
General Public (Individuals) 47,253,146 23.50
Subtotal 47,253,146 23.50
Total Holdings 201,093,750 100.00
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23.50%
16.05%
60.45%
Sponsors/ Directors Institutions other than Sponsors/ Directors Individuals
Figure 1: Shareholding Structure of IDLC at a glimpse
Service Suite of IDLC Finance Ltd.:

Small and Medium Enterprises
 Small and Medium Enterprise
Small Enterprise Loan/ Lease
Seasonal Loan
Women Entrepreneur Loan
SME Shachal Loan
SME Surakkha Loan
SME Deposit
Commercial Space Loan
 Medium Enterprise Finance

Medium Enterprise Loan/ Lease
Commercial Vehicle Finance
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Machinery Lease
Healthcare Finance
Revolving Short Term Loan
SME Deposit
Commercial Space Loan
 Supplier and Distributor Finance

Factoring of Accounts Receivable
Bill/Invoice Discounting
Work Order Financing
Distributor Financing
Consumer Finance
 Loan
Home Loan
Car Loan
Personal Loan
Loan against Deposit
 Deposit
Flexible Term Deposit Package
Regular Earner Package
Corporate
 Corporate Finance
Lease financing
Term Loan Financing for Capital Equipment
Project Financing
Short-term loan to meet working capital requirement
Specialized Products for meeting seasonal demand
Green Financing (BB Refinance)
Supplier and Distributor Financing (Factoring)
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 Structured Finance Solutions
Syndicated Loan
Private Placement of Equity
Preference Shares
Projects/ Infrastructure Finance
Bonds
Foreign Currency Loans
Refinancing of Special Funds
Merger and Acquisition
Joint Venture Matchmaking
Feasibility Study
Securitization of Assets
Commercial Paper
Treasury
Overnight Borrowing/ Placement

Term Deposits
Bonds
Debentures
Commercial Papers
Preference Shares
Equity Investments
Treasury Bills/ Bonds
Capital Markets
 IDLC Securities Limited

Cash Account
Margin Account through IDLC Investment Limited and other enlisted merchant banks
Easy IPO
Institutional and Foreign brokerage
Trade execution through Dhaka and Chittagong Stock Exchange
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Custodial and CDBL services
Bloomberg terminal for foreign clientele
 IDLC Investments Limited

Margin Loan
Discretional Portfolio Management
Corporate Advisory
Issue Management
Underwriting
Research
Milestones of IDLC Finance Limited:
23 May 1985 Incorporation of the Company

22 February 1986 Commencement of leasing business
Establishment of a branch in Chittagong, the main port city of
1 October 1990
Bangladesh
20 March 1993 Listed on the Dhaka Stock Exchange Limited
Licensed as a Non-Banking Financial Institution under the Financial
7 February 1995
Institutions Act, 1993
25 November 1996 Listed on the Chittagong Stock Exchange Limited
27 May 1997 Commencement of home finance and short term finance operations
Licensed as a merchant banker by the Bangladesh Securities and
22 January 1998
Exchange Commission
15 January 1999 Commencement of corporate finance and merchant banking operations
29 January 2004 Opening of the first retail focused branch in Dhanmondi
29 January 2004 Opening of the Gulshan branch
22 November 2004 Launched Investment management services, ‘Cap Invest’
2 January 2006 Opening of the first SME-focused branch in Bogra
6 April 2006 Opening of the Uttara branch
Relocation of the Company’s Registered and Corporate Head Office at
1 July 2006
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own premises at 57, Gulshan Avenue
Commencement of operations of IDLC Securities Limited, a wholly-
18 September 2006
owned subsidiary of IDLC
Launching of discretionary portfolio management services under
14 March 2007
‘Managed Cap Invest’
Company name changed to ‘IDLC Finance Limited’ from ‘Industry
5 August 2007
Development Leasing Company Bangladesh Limited’
6 January 2009 Opening of the Sylhet branch
26 August 2009 Opening of the Gazipur SME booth
3 February 2010 Commencement of operations at Narayanganj
24 February 2010 Inauguration of the Savar branch
8 August 2010 Inauguration of the second branch in Chittagong at Nandankanon
27 October 2010 IDLC entered Comilla
23 December 2010 IDLC inaugurated its Narsingdi branch
27 December 2010 Opening of the Keraniganj branch
15 June 2011 IDLC started operations at Mirpur
9 August 2011 Opening of the Tongi branch
Commencement of operations of IDLC Investments Limited, a wholly-
16 August 2011
owned subsidiary of IDLC
18 January 2012 Opening of the Jessore branch
11 March 2012 Rebranding initiative undertaken for IDLC
8 June 2014 Opening of the Khulna branch
28 October 2014 Opening of the Bhulta branch
10 November 2014 Opening of the Natore branch
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Present Industry Scenario in light of Porter’s Five Forces
Model:
In order to investigate the present market scenario of IDLC Finance Limited I have accomplished
the Porter’s Five Forces analysis.
a) Intra Industry Rivalry:

The intra industry rivalry of the company is high because of the following reasons:
 Industry Competitive Structure: The banking and non banking financial industry of
Bangladesh can be characterized by fragmented industry since there are a lot of
companies in this industry. Due to the presence of a large number of companies in the
industry the intra industry rivalry is high.
 Industry Demand: As this industry belongs to a developing country there exists demand
for its services. However the extent of demand is somewhat volatile due to fluctuations in
macroeconomic factors e.g. interest rate, inflation rate, unemployment rate, foreign
exchange rate etc. Another major factor that affects this industry severely is political
turmoil which frustrates economic growth. Consequently demand for service falls
sharply.
 Cost Structure: In this industry a significant percentage of total cost is fixed cost. Hence
intra-industry rivalry is high.
 Exit Barriers: The exit barrier in this industry is high. As a result intra-industry rivalry is
also high.
b) Threat of New Entrants:

The threat of new entrants in this industry is low because of the following reasons:
 Economies of Scale: The economies of scale in banking industry are high. So threat of
new entrants is low in this industry.
 Brand Loyalty: Banking industry has significant first mover advantage. Thence earlier
firms have absolute advantage over new firms. Thus, threat of new entrants is low.
 Absolute Cost Advantage: The established firms in banking enjoy cost advantage over
the newer entrants. In most cases the new entrants cannot match their cost with
established companies’ lower cost. So threat of new entrants is low in this industry.
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 Customer Switching Costs: Most bank and NBFIs provide almost all types of services
under one roof. So once after opening an account with a firm, a particular customer
usually doesn’t switch to another firm. So due to high customer switching costs threat of
new entrants is low.
 Government Regulations: Due to high legal restrictions threat of new entrants in the
banking industry is low.
c) Bargaining Power of Buyers:

The bargaining power of buyers in the banking industry is high because of the following
reasons:
 Buying Volume: When buyers invest in large volume they achieve the bargaining power.
 Product Differentiation: Most of the products and services offered by different firms in
the industry are almost identical. As a result buyers or clients achieve a high bargaining
power.
 Production Cost: As clients are well aware of the service costs they eventually achieve
high bargaining power.
d) Bargaining Power of Suppliers:

The bargaining power of the suppliers in banking industry is high due to the following
reasons:
 Level of Concentration: Since the suppliers are highly concentrated, the bargaining
power of suppliers of this industry is high.
 Percentage of Suppliers’ Business: As the big depositors are low in number, they have
the high bargaining power.
e) Threat of Substitutes:
The threat of substitute is high in the banking industry due to the following factors:
 Availability of Profitable Substitutes: In banking and non-banking financial sector
industry of Bangladesh various profitable substitutes are emerging. So they can be threats
to the existing firms.
 Price-Performance Relationship of Substitute Products: In this industry the price-
performance relationship of substitute products or services is improving steadily.
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CRM-CD: The Department I have worked in:
The department I have worked in was Credit Risk Management of Consumer Division. This is a
small centralized department of just fifteen persons. The department is headed by Ms.
Mahjebeen Binte Rahman and her designation is Head of Credit, Consumer Division. Mr.
Muhammad Sazzad Mahmud is a Senior Manager of the department who directly reports to her.
The Cluster Managers and Head of Car Loan report to him directly. The Credit Analysts of the
department work under direct supervision of their respective Cluster Managers or Head of Car
Loan.
The principal task of the department was to analyze all the loan applications from Credit Risk
perspective which are in fact acquired by Sales Teams of Consumer Division. All the loan
applications made by the consumer client segment are submitted in this department and this
segment can be further divided into several categories e.g. Service Holders, Business Persons,
Professionals, Landlords and Non Resident Bangladeshi (NRB) client. After proper analysis and
scrutinization the Credit Analysts give their decisions about the loan applications. If a loan
application is found creditworthy it is sanctioned, otherwise it is rejected. Loan applications can
be rejected on multiple grounds – falsification or fabrication of provided documents, history of
Bad Loan (BL) in CIB (Credit Information Bureau) report etc. The decision given by each Credit
Analyst is finally evaluated by a Credit Evaluation Committee (CEC). The composition of CEC
is as follows:
Selim R.F. Hussain, CEO and Managing Director

H.M. Ziaul Hoque Khan, FCA, Deputy Managing Director & CFO
M. Jamal Uddin, Head of Corporate Division
Zahid Ibne Hai, Head of SME Division
Irteza A. Khan, Head of Consumer Division
Teams and Persons:

For the ease of operations and control the Credit Analysts of the department have been divided
into several teams. For example out of thirteen Credit Analysts of the department ten are
assigned to analyze Home Loan (HL) and Personal Loan (PL) applications. The rest three Credit
Analysts of the department are dedicated to analyze only Car Loan (CL) applications. The Credit
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Analysts assigned for Home Loan and Personal Loan have been divided into two different
clusters – Gulshan Cluster and Dilkusha Cluster. Under each cluster there are eight different
areas and five Credit Analysts. Loan application made from a particular area is submitted to the
cluster in which it is included in. Each of the clusters is managed by a Cluster Manager whereas
the Car Loan team is supervised by Head of Car Loan (HoCL). In Case of Car Loan team loan
application made from any of the sixteen listed areas is submitted to it for analysis.
The details of all the three different teams of the department are presented below in tables:
Cluster Manager:
Team 1: Home Loan (HL) & Personal
Mr. Mehedi Mahmood Khan, Assistant Manager

Members of Gulshan Cluster:
Gulshan Cluster
Mr. Mehedi Ms. Farzana Mr. Md. Ms. Maleeha Mr. Sakibul
Loan (PL)
Mahmood N. Faruquee Mostafizur Tarannum Huq Sakib

Khan (Assistant Rahman (Management (Probationary
(Manager) Manager) (Assistant Trainee Officer) Officer)
Manager)
Areas Under Dilkusha Cluster :
1. Gulshan, 2. Uttara, 3. Rangpur, 4. Savar,
5. Comilla, 6. Bogra, 7. Sylhet, 8. Mirpur
Table 1: Gulshan Cluster at a Glimpse
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Cluster Manager:
Mr. Imran Parvez, Assistant Manager
Team 2: Home Loan (HL) &
Members of Dilkusha Cluster:

Dilkusha Cluster
Personal Loan (PL)
Mr. Imran Mr. Somiun Mr. Sayan Mr. M. Tahsinul Mr. Saidul
Parvez Bashir (Senior Hasan Siddiqui Amin Bari
(Manager) Executive (Assistant (Probationary (Probationary
Manager) Manager) Officer) Officer)
Areas Under Dilkusha Cluster :
1. Dilkusha, 2. Dhanmondi, 3. Chittagong, 4. Narayangonj,
5. Norshingdi, 6. Bhulta, 7. Jessore, 8. Khulna
Table 2: Dilkusha Cluster at a Glimpse
Head of Car Loan (HoCL):

Team for Car
Loan (CL)
Mr. Reaz Hassan Awwal, Assistant Manager

Members of Dilkusha Cluster:
Mr. Reaz Hassan Awwal Mr. Sabbir Ahmed Mr. Nazran Kabir
(Assistant Manager) (Executive Officer) (Probationary Officer)
Table 3: Car Loan Team at a Glimpse
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Products & Services:
The ‘Credit Risk Management (CRM)’ department of ‘Consumer Division (CD)’ deals with
three different types of products and services e.g. Home Loan (HL), Car Loan (CL), and
Personal Loan (PL). The details of these products or services are described below:
Home Loan (HL):

Under this category there are
different types of loans e.g.
Construction Loan, Land Loan,
Apartment Loan, Commercial Space
Loan and Home Equity Loans. Each
of them has been designed with
specific features keeping in mind to
meet the diversified needs of the
clients.
Its total size varies between 80-85% of total Consumer Division loan portfolio.
Key Benefits:
Equal treatment of all applications, irrespective of any profession
Dedicative and supportive service both before and after the loan disbursement
Independence in choosing Fixed or Variable interest rate
Sanction of the loan within the shortest possible time
Early pre-payment option, either in part or full, with convenient conditions
Income Tax rebate on annual interest payment on loan up to 20 Lacs
Option of availing Municipality Holding Tax rebate
Competitive interest rate and lower fees
Availability of Home Loan:

For purchase of apartment/house/commercial space/approved housing plots
For construction of residential/commercial buildings
For renovation or extension of residential complex
As Home Equity Loan against mortgage of property
27
Eligibility:
One is eligible for the company’s Home Loan facility for the following cases:
Applicant of 25 years or above age, but not more than 60 years, except professional
Applicant has earning on a regular basis from a sustainable source of employment or
business
Factoring Affecting Home Loan:

The amount of Home Loan depends upon the repayment capability of an applicant. For this, a
number of factors are taken into consideration. They are as follows:
Monthly net disposable income of the applicant
Age and academic qualification of the applicant
Value of the immovable property
Number of family members and dependants
Monthly expense and other fixed obligations
Nature of job/business
Savings habits
Residential Purpose: 70% of the purchase price, including registration cost, or 80% of the
construction cost can be offered as Home Loan
Commercial Purpose: 50% of the purchase price, including registration cost can be offered as
Home Loan.
Loan Term:
Residential Purpose
Category Maximum Term Maximum Age
Professional 20 years 65 years
Businessman 15 years 60 years
Non Resident Bangladeshi (NRBs) 10 years 60 years
Service Holders 20 years 60 years
Commercial Purpose: Maximum 7 years for any profession.
Payment Mode:
The entire facility has to be repaid through Equal Monthly Installments (EMI).
28
Security:
Mortgage of the property itself or any other equivalent security, as acceptable to IDLC.
Interest Rates and Fees:

IDLC Finance Limited offers competitive interest rate and charges low fees. The factors
considered on this regard are as follows:
Financial status of the customer
Amount borrowed and repayment terms
Property Insurance:
The mortgaged asset should have fire or earthquake insurance by any IDLC nominated insurance
company.
Car Loan (CL):

In this time of rush hour and round-
the-clock routine, owning a car has
become one of the basic necessities of
urban life. It not only ensures personal
control but also gives mobility. Thus it
improves the quality of one’s life.
Because of the flexible terms and
conditions of IDLC Car Loan owning
a car is no longer a luxury.
Its total size varies between 12-15% of total Consumer Division loan portfolio.
Scope:
IDLC Car Loan is offered to purchase brand new and/or reconditioned vehicles.
Loan Tenure:
The maximum loan tenure is 5 years.
Repayment:
The loan repayment mode for IDLC Car Loan is Equal Monthly Installments (EMI).
Benefits:
Faster Service
29
Maximum possible loan amount
Competitive Interest Rates
Special discount on vehicle price offered by renowned dealers, under special arrangement
with IDLC
Partial or full payment options
No Personal Guarantee required
No hidden charges or fess
Eligibility to avail Car Loan

Following are the eligible segments for availing IDLC Car Loan:
Service-holders
Professionals
Self-employed Persons
Business Persons
Age of the Borrower(s):
The age of the borrowers can be between 22 years to 60 years. However the loan must be
repaid on or before the age of 60.
Minimum Monthly Income:
Service-holders/Professionals: Taka 40,000 (including income of co-applicant, in case of
joint application)
Landlord: Taka 50,000
Business Persons:
o Small and Medium Segment: Taka 50,000
o Corporate Segment: Taka 75,000
NRB Borrowers:
o Service-holders: Taka 75,000
o Business Persons: Taka 100,000
Minimum Work/Business Experience:
Service-holders and Professionals: Minimum 2 years, and at least 6 months with the
current employer
Business Persons: Minimum 3 years (Corporate Segment) and minimum 5 years (Small
and Medium Segment)
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Car Registration:
The car to be bought is jointly registered under the names of both the borrower(s) and IDLC.
Location:
Clients residing in the areas in vicinity of IDLC’s branches or booths may approach to avail this
facility, to ensure desired service.
Personal Loan (PL):

Because of the IDLC Personal Loan
People do not have to depend solely
on their personal savings to
accumulate. Sometimes it becomes
tough to meet the ever changing
needs with just personal savings.
IDLC Finance Ltd. offers Personal
Loan to achieve one’s aspirations
that is suitable for him/her.
The Consumer Division usually offers this service to its existing customers. The total size of
IDLC Personal Loan varies between 2-3% of total Consumer Division loan portfolio.
Benefits:
Faster loan approval
Competitive interest rates
Lowest possible charges
Dedicates and supportive service
Easily settlement option
Purpose:
Purchase of consumer durables
Meeting financial liabilities
Marriage
Education
Domestic or foreign travel
Medical treatment for self/family members
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Other needs
Types of Loan:
Two types of loan is offered under the Personal Loan facility – Secured Personal Loan and
Unsecured Personal Loan.
Secured Personal Loan: It is backed by financial or physical asset. They can be:
Cash security. Can be deposit with IDLC or lien on FDR.
Assignment of salary.
Assignment of retirement benefits.
Any immovable property in Dhaka, Savar, Gazipur, Chittagong, Bogra, Sylhtet and
Comilla.
Unsecured Personal Loan: It is not backed by any security or guarantee under specific
conditions of IDLC.
Loan Amount:
As per clients’ requirement the amount of loan ranges from Taka 50,000 to Taka 10, 00,000.
Loan Tenure:
The facility is extended by IDLC from a minimum of 1 year to a maximum of 5 years.
Repayment:
The facility of IDLC Personal Loan can be repaid in the form of Equal Monthly Installments
(EMI).
Interest Rates and Fees:

A competitive interest rate is charged by the company against its Personal Loan facility. The two
important factors that come into play in setting individual rate s are: financial status of the
customer and amount of loan.
Prepayment:
The Personal Loan clients of the company get the opportunity of early prepayments subject to
condition of payment of minimum charges.
32
Steps Involved in Credit Risk Management:
The steps involved in the credit risk management process have been showcased in the diagram
below:
01
Approving
02 03
transactions
and setting and Monitoring compliance Assessing the
communicating with established credit likelihood that
credit exposure limits. counterparty
will default on
its payment
04 05 obligations.
Measuring the firm’s Reporting of credit
current and potential exposure to the 06
credit exposure and senior management,
losses resulting out of Communication and
the Board and
counterparty default collaboration with other
regulators, use of
independent control and
credit risk mitigation
support functions such
includes collateral
as operations, legal and
compliance
Diagram: Steps in credit risk management process
33
Reporting Relationship:
Head of Credit,
Consumer Division
Senior Manager
Cluster Manager of Cluster Manager Head of Car Loan

Gulshan Cluster of Dilkusha Cluster
Credit Analysts of Credit Analysts of Credit Analysts of

Gulshan Cluster Dilkusha Cluster Car Loan Team
My Tasks, Assignments & Contribution in the Organization:

Initially, as an intern I was assigned with some routine tasks. But later I had to perform some
other tasks which were not actually routine tasks by nature. Moreover I had to accomplish some
tasks and assignments on ad hoc basis. Below are the tasks and assignments through which I
have contributed for my respective organization:
Maintaining Pipeline of Incoming Files:

This is one of the very important tasks I used to perform on daily basis. Pipeline is the central
spreadsheet containing all the basic important information of the incoming files. The
information contained in the Pipeline for each specific file were receiving month of the file,
name, CIF number and profession of the client or loan applicant, branch, sales channel,
cluster (for Home Loans), RM (Relationship Manager) of the loan, type and amount of loan,
STM (Sales Team Manager) of the loan and receiving date of the file.
34
Figure 1: A glimpse of Pipeline
Checking and Receiving the Incoming Files:

While making Pipeline entries for the incoming files, I used to separate the attached CPV
(Consumer point Verification) requests from the files. I also checked some critical fields of
the files e.g. whether reference of loan application, seal of STM or CIF of the applicant and
co-applicant etc. was given appropriately. If any of these was missing I used to back the files
to the respective sales channel – NS (National Sales) or BS (Branch Sales). Otherwise If I
found everything perfect, I used to put a receiving seal on the file cover. My next task was to
check the Register Book of the NS and BS Channel which used to come along with the
submitted files. After checking both the books carefully I had to sign my name there to
confirm the reception of all the submitted files from the department’s end. To determine the
receiving date of the files a Cut Off time was fixed. For a regular working day it was 11:00
A.M. and for the holy month of Ramadan it was 10:30 A.M. Files submitted after Cut Off
time was received in the next day instead of the submission day.
35
Distributing Files and Updating the Pipeline:
After making the entries of incoming files in the Pipeline I used to separate them according
to their type e.g. Home Loan, Personal Loan and Car Loan. Next he files of Home Loan and
Personal Loan were divided according to their clusters. Therefore all the Home Loan and
Personal Loan files of Gulshan Cluster were submitted to Gulshan Cluster Manager, Mr.
Mehedi Mahmood Khan. All the Home Loan and Personal Loan files of Dilkusha Cluster
were submitted to Dilkusha Cluster Manager, Mr. Imran Parvez. In each case, after
submitting the files to the Cluster Managers I and other interns of the department used to
divide them further according to the loan applicants’ profession. Usually they were split up
into three different categories – Landlord, Business and Service files. In case of Car Loan
files, they were submitted to Head of Car Loan (HoCL) Mr. Reaz Hassan Awwal. Which
Personal Loan and Home Loan application of Gulshan and Dilkusha Cluster would be
analyzed by which Credit Analyst was decided respectively by Mr. Mehedi Mahmood Khan
and Mr. Imran Parvez. In case of Car Loan applications it was decided Mr. Reaz Hassan
Awwal. Usually they used to put the name of the Credit Analyst on each specific file. Finally
my task was to update the Pipeline by putting the names of the Credit Analysts against all the
entries of incoming files in a separate column. I finished updating the Pipeline by checking
whether the names of all the Credit Analysts have been entered against all the entries of
incoming files in a particular day.
Sending CPV Requests to BRISK:

As mentioned earlier the CPV requests were separated from all the submitted files. The
CPVs can be of four types e.g. Rental (R), Address (A), Bank Statement (BS), and Letter of
Introduction (LOI). They were verified by the company’s third party agency BRISK
Management. In every afternoon my task was to send them for verification through a
designated person of BRISK.
Maintaining the CPV Pipeline:

Before sending the CPV requests to BRISK I had to make entries in the CPV Pipeline. This
is actually a Microsoft Excel spreadsheet for internal recordkeeping and contains lists of
CPVs for which requests for verification have been made and for which the hardcopy or
softcopy of verified CPVs have been received. In the CPV Pipeline I had to make entry for
CIF of the CPV, type of CPV and request sending date. In case of Address CPVs I had to put
36
the number of address to be verified and select whether they were Office/Business address or
residential address. In case Rental CPVs I had to put area name and district in the respective
field. For Bank Statement CPVs I had to mention name of the bank and branch. Finally I
used to copy all the entries made in a particular date in a separate sheet, printed it along with
the Bank Forwarding Letters, get them signed by the persons of the department, submitted
them along with the CPV request papers to BRISK’s designated person.
Figure 3: A glimpse of CPV Pipeline
Preparing Bank Forwarding Letters:

After making entries for CPV requests I had to count how many Bank Statement CPV
requests have been made in particular date. I had to print the same number of Bank Fording
Letters and get them signed by the persons of the department. These are actually letters that
authorize BRISK to verify clients’ personal or business bank accounts.
37
Updating the CPV Pipeline and Distributing CPVs:
In every morning one of my tasks was to update the CPV Pipeline. For this I had to make
entries for the verified CPVs by selecting whether the Hardcopy (H) or Softcopy (S) has been
received and the date in which they have been received. For the verified Bank Statement
CPVs I had to select its status e.g. authenticated, declined or original copy had been
demanded etc. After that I had to check the Pipeline of incoming files to determine which
verified CPV would have to be submitted to which Credit Analysts. I used to do this by CIF
of the clients. Finally I used to distribute them among the Credit Analysts.
Performing Appraisals:
A routine task of mine was to performing Appraisals. Here Appraisal means updating client
and loan application related information in Microsoft Excel sheets. For this different
Appraisal formats were available in the IDLC’s Cloud drive according to different type of
loans – Home Loan, Car Loan and Personal Loan.
Calculation of MACT and MAB:

Besides appraisal in case of Personal Loan and Car Loan I had to perform an additional task.
It was going through the Bank Statement of the clients and calculating MACT (Monthly
Account Credit Turnover) and MAB (Monthly Account Balance). In case of a Personal Loan
applicant I had to analyze last six month’s Bank Statement of personal account. For the Car
Loan applicants I had to analyze last six month’s Bank Statement of personal account along
with last twelve month’s Bank Statement of business account. The task of calculating MACT
and MAB is not a difficult task actually but it is a very time consuming task. So performing
this task I was able to save a lot of time of the Credit Analysts of my department.
Checking and Incorporating TRs:

In case of Home Loans I had to incorporate Technical Reports (TR) with my performed
Appraisal. These TRs were actually prepared by the company’s Technical Team and the soft
copies of the reports were uploaded in a public folder by IDLC Technical Teams. There were
two types of TRs – Construction Progress Report (CPR) for Construction or Home Equity -
Construction Loans and Technical Valuation Reports (TVR) for Flat and Land purchase
loans. I used to download a particular application’s TR and attach it with the appraisal.
38
Emailing the Details of Received Files to Listed Group of Recipients:
Another of my task in every morning was emailing details of all the received files in previous
day along with their Credit Analysts. I emailed it to Ms. Mahjebeen Binte Rahman, Head of
Credit Risk Management keeping all the concerned persons of the department, National Sales
and Branch Sales in CC. The prime objective of this was to updating everyone about the
Credit Analyst of all the submitted files.
Making Requests for Urgent CPVs:

In case of urgency I had to follow up BRISK and request them to email me the softcopies of
the verified CPVs in case the hardcopies have not been sent by them. I used to print out the
CPVs and hand them over to Credit Analysts.
Helping CAD with the CPVs:

Sometimes the sanctioned files were taken by the RMs of NS and BS channel before
reaching the verified CPVs in our department. However in most cases loans were not
disbursed without these verified CPVs. In such cases my responsibility was to send the
verified CPVs of the sanctioned files to the CAD department.
Helping RMs, STMs and STLs:

Another of my responsibility was to satisfy the queries of Relationship Managers (RM),
Sales Team Managers (STM), and Sales Team Leaders (STL). I had to update them about the
verified CPVs or Credit Analyst of the files as per their queries.
Preparing Asset Details of Clients:

When there was too much pressure of files I used to take the responsibility of preparing asset
details of the clients. These asset details were actually necessary for deciding which assets
could be used as mortgage of the loan.
Checking the CIB Reports:

One of my responsibilities was to inform the Credit Analysts about whether the CIB (Credit
Information Bureau) Report of the client has been sent or not. I used to find it through CIB
tracking number of the client from a list uploaded in public folder by a designated person of
the department.
39
Performing DISR:
During my internship I had to prepare and maintain DISR (Daily Inventory System Report)
on a weekly basis. This is a report that reflects the status and number of files for each credit
analyst of the department. The status of the files can be Pending (P), Under Process (UP), in
CEC (Credit Evaluation Committee) Proposal, and Rejected (R). This also shows how many
of the clients were service holder, businessman and landlord for each Credit Analyst.
Another aspect of this sophisticated report is that it shows total number of files sanctioned
and rejected and number of Personal Loan, Home Loan and Car Loan files by both NS and
BS channel. In each and every case the loan amounts and their total figures are also reflected
in the report.
Figure 4: A glimpse of DISR
40
Figure 5: Branch wise data at a glimpse
Maintaining the Registrar Book:

As an intern I had to maintain a Register Book of the department. All the sanctioned, rejected
and backed files were sent to their respective sales channel. Sometimes the RMs used to take
the sanctioned files from the department. In a few cases I had to send some files to credit
analysts if s/he sits in another branch instead of Dilkusha Branch. In every case I used to
make entries of the files for internal record keeping.
Client Visit:
Sometimes I used to take the responsibility of assisting Credit Analysts in client visits. These
visits were made to get clearer picture about the loan applicant. Information surrounding
client’s business or profession were checked and investigated with special emphasis.
Sometimes the client’s educational qualification, family information, property information
etc. were gathered in face to face interview with the client, all of which are crucial in loan
sanction and rejection decision. Additional information was also collected from the clients if
necessary. As an intern my responsibility was to make observations and note down all the
important information.
41
Interviewing of Clients and Preparing Client Profiles:
In cases of time constraints making client visits were not possible. The alternative of this was
calling to the client’s personal or T&T number using Microsoft Lync software. All critical
information is checked through the interview. Moreover any additional necessary
information is collected from the client through interview.
Working With the Sales Team:

During my internship, once I got the precious opportunity to work with the Sales Team of the
company. I prepared a list of potential clients who can be approached for loan applications.
In addition to that, I assisted the RMs in preparing, filing and documenting the loan
applications.
Working with CAD:

Credit and Disbursement (CAD) is actually the department responsible for disbursing the
loan to the client. They are also responsible for overseeing whether loan installments are
properly repaid or not. As an intern I made a list of files which were sanctioned in last week
and made a schedule for disbursement.
Contributing in IDLC Monthly Business Review:

IDLC Monthly Business Review is monthly magazine published by IDLC Knowledge
Center. Once as an intern I prepared a draft on the article “Money Laundering” to be
published in July issue of the magazine. After some editing and some corrections by the
concerned person of IDLC Knowledge Center it was published in the magazine.
Preparing Presentation Slides:

I performed the task of preparing presentation slides during my internship period. The slides
were prepared focusing monthly performance of all Credit Analysts of the department.
Preparing Monthly Bills for CAD:

This is another very important task I have performed twice during my internship. I
crosschecked the BRISK’s counting of number CPVs verified by them in the previous
month. For this I went through all the previous month’s entries in the CPV Pipeline. I was to
count all the four type of CPV requests e.g. Address (Residential and Office/Business), Bank
Statement, Rental and Letter of Introduction (LOI) made in last month.
42
Preparing Monthly Update of Files:
As an intern, at the end of every month I had to prepare a report of monthly update of files.
The report shows files sanctioned, in CEC proposal and Under Process both in number and in
BDT amount.
Making Entries in FLEXCUBE :

FLEXCUBE is an Oracle Financial Services Software which is used to authorize CAD for
disbursement of loan to the loan applicants by the Credit Analysts of my department. When
the Credit Analysts were in too much work pressure I used to make entries in FLEXCUBE
on behalf of them.
Lessons Learnt & Experience gained from Internship:

Internship is a program through which fresh graduates can avail a gateway in corporate world.
This is great opportunity for them to acclimatize themselves with corporate cultures. Moreover
this enables them to learn new things and gain in hand experience. Under this development
aspect I have come across many things during my three month long internship in the company. It
has helped me to develop myself in various ways. The first thing that I want to mention is I have
become more punctual and professional. This has also developed another skill that I lacked
before i.e. the ability of multitasking. In corporate world often an employee has to engage
himself/herself in multiple tasks simultaneously. I carefully observed how the persons in my
department used to tackle such situations. I learned that prioritizing tasks according to their
deadline and importance is the mantra to tackle such pressure situations successfully. Later I
implemented this technique in my work and accomplished my tasks as an intern successfully. In
addition to these I want to mention that this internship has broaden my view that asking for help
from the colleagues is not actually a matter of discredit rather it gives a signal to others that I
have the willingness to learn and work perfectly. “How to self motivate under stressful
situation?” this is another learning outcome during my internship in IDLC Finance Limited.
Without any doubt this self motivation thing matters a lot in the corporate world. The reason is in
the corporate world stressful situations appear on a regular basis and his/her actions in such
situations are observed by the people around him/her. Lastly I want to say that this internship has
boosted up my confidence level to a significant extent.
43
For ease of understanding I have divided the tangible learning outcomes from my internship into
two separate segments – Personal Development and Practical Knowledge. They are described in
the paragraphs below:
Personal Development:
During my internship I have successfully developed the following skills by my own initiative
and with the support of my helpful colleagues:
 Practical Knowledge of NBFI: Before my internship in IDLC, I had little knowledge about
NBFI and their operations. Over my internship in this company I got myself acquainted with
various aspects of a NBFI.
 Communication Skills: During my internship I had to communicate both verbally and
electronically with a lot of people from different teams and departments on a regular basis. It
has enhanced my communication skills to a great extent.
 Team Skills: I had to work in a team of interns consisting of three members. To finish our
tasks accurately and in time we had to coordinate and divide tasks among ourselves. Such
experience has sharpened my ability to work in a team environment.
 Ability to Work under Pressure: Besides my routine tasks as an intern sometimes I was
assigned diversified tasks and asked to finish them instantly. In such cases I took guidance
from my colleagues. This has taught me how to handle workload and work effectively and
efficiently under pressure.
 Corporate Culture: My internship in IDLC Finance Limited exposed myself in a very rich
corporate culture. I got the opportunity to work with a bunch of qualified and experienced
people and learn the ins and outs of a corporate culture. Surely this will help me in my future
life.
Practical Knowledge:
Through my day to day work as an intern I have gathered some practical knowledge. They are as
follows:
 Operating FLEXCUBE: During my internship one of my tasks was to making entries
through FLEXCUBE. This is widely used software in banking industry made by second
largest software making company in the world – Orcale Corporation. After using it for
44
several times I became very efficient in using it. Using it I used to maintain a record of the
clients and disburse loans.
 Functions of Microsoft Excel: The most widely used software during my internship was
Microsoft Excel. I got know about different functions or formulas of the software e.g.
VLOOKUP, If and Nested If, Data Validation etc.
 Analysis of Bank Statement: While preparing appraisals of loan applications I learned how
to analyze bank statements and calculate MAB (Monthly Average Balance) and MACT
(Monthly Average Credit Turnover).
 Client Visit: During client visit I got a firsthand experience of how a Credit Analyst verifies
data and make effective observations through client visits.
Interactions with my Supervisor and Coworkers:

In IDLC Finance Limited my internship supervisor was Mr. Reaz Hassan Awwal, an assistant
manager of the department. He is former student of Dhaka University and working in IDLC for
last five years. At the initial stage of my internship I was very much tensed about my works. But
he advised me not to rush into work and assured enough guidance and support so that I could
work with ease and comfort. From beginning to end of my internship in the company I got his
endless support and guidance. In the second day of my internship he gave a hardcopy of filled up
appraisal to me. Though this I got a brief idea about accomplishing appraisals of loan
applications. I received a short training session from him regarding how to analyze bank
statements and calculate MAB and MACT while performing appraisals of Car Loans. In the third
week of my internship a log in account was created for me by him. Moreover I received an email
address for easing up the communication with department personnel. Whenever I faced any
problem or confusion in my work I used to seek guidance and assistance from him without any
hesitation. He always helped me cordially. During my internship I visited North South
University thrice for various purposes. In every case I took permission from him for half day
leaves. In all three cases my leave application was sanctioned. Besides he used give me advice
and suggestions about my work. Most importantly during my three month long internship I have
learnt a significant number of Excel tricks, tips and shortcuts from him.
45
All the persons of my department were very friendly, cooperative and cordial. From the very first
day they treated me so cordially as if I was one of them. They were from various academic
backgrounds e.g. Dhaka University, North South University, and East West University etc. The
thing that I liked most about them was the way in which they were very agile but professional at
the same time. Due to my keen interest they shared various aspects of Credit Analysis with me.
They advised me to ask work related questions and seek help from them without any hesitation.
So whenever there was less work pressure I used to ask questions to them about their regular
tasks. Their cooperation has enabled me to gather a lot of practical experience from my
internship. Due to their appreciation and criticism I always used to put extra effort to improve
my works.
Despite being an intern I was invited in several parties e.g. birthday party, promotion celebration
party etc. arranged by the department personnel. I attended an Iftar party with them too in the
holy month of Ramadan. Once I went to Sher – a – Bangla National Stadium in Mirpur to watch
a One day international match between Bangladesh and India along with some of my colleagues.
Moreover in free times they gave me career related tips and advice. This helped me to know
about the ins and outs of the job market as well as the banking industry of Bangladesh.
Difficulties faced during my Internship & how I have

overcome them:
I have gained invaluable knowledge and experience from my three month long internship in
IDLC Finance Limited. However my journey was not smooth since I encountered some
difficulties. I managed to overcome them as soon as possible.
The very first difficulty I faced was adjusting me with the corporate environment of the
company. In the first day of my internship I was able to put a great impression about myself
among my supervisor and colleagues through just a short conversation. With the passage of time
I adjusted myself with environment with the help of my department personnel.
At the initial stage of my internship I was susceptible to make mistakes. However the feedback
and advice from my supervisor and colleagues helped me to rectify myself quickly and got
myself back on track.
46
Another difficulty I faced during my internship was regarding my inefficiency in multitasking.
In the first couple of weeks of my internship it was very difficult for me to concentrate on two or
more things at a time and sometimes I made mistakes. I learned that in corporate culture it is
very normal for an employee to deal with several tasks at a time. Following the advice from my
supervisor I adopted the technique of prioritizing my tasks according to their deadlines and
importance. It actually worked like a magic wand and helped me to cope myself with the
problem.
Another difficulty faced by me was when I had to deal with my emotional instability. Sometimes
I got upset and disappointed when I did not receive any appreciation from my supervisor and
colleagues for my hard work and contribution. Sometimes it badly affected my works as well. I
heard my senior colleagues saying that it was very hard to satisfy everyone in the corporate
world. Keeping this statement in my mind later I increased my focus in my works and cope
myself with such issues to perform better.
Differences between Expectation and Actual Experience

from Internship:
Before starting my internship in IDLC I thought that I would have to sit all day long in a cubicle
and do boring repetitive tasks. However such anticipation of mine blew away at the very first day
of my office. I observed that the office was designed following the open office concept. The
cubicles were well designed to ensure everyone’s privacy and simultaneously the intimacy
between the colleagues was taken care off. I thought being an intern I would not get enough
chance to interact with the people in my department. However during my internship I had
conversation with them on various matters ranging from work related issues, career planning to
latest released movies.
Another of expectation of mine was that much of my tasks would be clerical tasks e.g.
photocopying papers, scanning, filing and printing documents. But reality was very much
different from my expectation. I was given a separate computer to use. So besides doing the
mentioned tasks as an intern I got the opportunity to involve myself with a wide range of tasks of
greater importance.
47
I never expected to meet any top level employee of IDLC during my internship tenure. However
some top level employees e.g. Head of Consumer Division Mr. Asif Saad Bin Shams, Head of
Operations Mr. Ataur Rahman Chowdhury visited our branch and also talked with me.
Obviously it was a big thing for me.
I also thought that I would have to do so many work that I would not get any free time to talk
with others. But I was given independence in my works. So sometimes I managed to get ample
time. Usually after the lunchtime I used to gossip with my colleagues while drinking coffee. Also
we used to watch and enjoy Cricket matches together in the TV room in times of less work
pressure.
Finally and most importantly, I never expected that I would miss the office and its people after
the completion of my internship. But now I am missing the lively environment of the office and
its people the most.
Influence of Internship in my Career Plan:

Before starting my internship in IDLC Finance Limited I was very relaxed about my career. I
became serious about this after joining the company as an intern since it exposed me to a
competitive environment. I realized that if I do not work on my skills and take challenges I
would have to fall behind. Nowadays I spend time to work on my weak points and put myself
out of my comfort zone so that I can be a versatile personality.
After completion of my internship in IDLC I was also able get a brief idea about career in
banking sector. Previously I used to think that the best job for a fresh graduate can only be
working in a Multinational Company (MNC). But now I hold the perception that an MNC
definitely boosts a fresh graduate’s career but it is not the only sector to gear up his/her career.
Banking and Non-banking Financial Institutions are also good place for fresh graduates like me
to embark on their career. The arguments in favor of my claim are as follows:
a) Banks and NBFIs are very secure places to work and the chance of de-recruitment is very
low.
b) This sector offers handsome amount of salary and basic allowances.
c) Job growth is fast subject to excellent performance.
d) Opportunity to communicate with people of diverse class and background.
48
e) Social recognition.
I really enjoyed the works in my department during my three month internship in IDLC Finance
Limited. I was able learn a lot of things and develop my skills by working with a group of
qualified and experienced professionals. Therefore I want to start my career in banking sector.
If I had to redo the Internship what I would do differently?

It was an honor for me to work in large and prestigious organization like IDLC Finance Limited.
But there are certain things that I would do differently if I had to redo the internship. The first
thing that I would have changed is my confidence level. At the initial stage of my internship I
was a bit nervous. Due to this I not only became a slow learner but also used to make mistakes. I
took some time to boost up my confidence level and later got rid of from the mentioned
negativities.
Secondly, I would like to change my perception about certain matters. Sometimes I was asked to
do jobs with trivial importance. It used to heart my feelings and question my knowledge and
achievements in academic life. But no job is small is, every job should be done with equal
importance and sincerity – this is another thing I realized later on.
Thirdly and most importantly, I would put special emphasis on my verbal communication in case
of redoing the internship. My supervisor once told me that I talked very less with my colleagues
and it was a big drawback about me. He added that in corporate world I had to be very noticeable
and for this I should have talked a lot. According to him carrying an important conversation in
workplace was very important. Hence if I had to redo my internship I would mingle myself more
with my colleagues by talking more with them. It would also help me to involve myself more in
new and diversified tasks, assignments and jobs.
49
Recommendations:
The department in which I have done my internship is comprised mostly of young employees
with having experience from six months to eighteen months. While working there I figured out
some problems. They are as follows with possible recommendations:
Improvement of Technology: Like any other corporation a cloud drive is used by the
company. But sometimes it used to go out of order. This caused hampered in regular works.
Therefore the company should pay some attention in improving this system.
Office Hour: Sometimes it had been observed that some senior members of the department
did not maintain their office hours. At times such tendency clogged up regular flow of works.
For example, sometimes I was unable to send a sanctioned file to its respective business
channel without the signature of the cluster manager due to his absence. So they should be
more sincere in maintaining office hours.
Lack of Manpower: In times of heavy inflow of loan applications the inventory size of each
Credit Analysts used to rise drastically. It slows the delivery of service in due time. So the
department should think of increasing its size to avoid such situations.
Training: Sometimes the younger employees used to make mistakes in their works. Also I
observed that in some instances they were reluctant to take business cases since they require
more detailed and time consuming analysis. Sometimes confusion arouse among them
regarding client visits. So management should seriously consider these issues and take
necessary steps to give them more training.
Centralizing the Office Facility: A vital problem in my department was lack of proper
sitting arrangement. Due to this sometimes miscommunication occurred. Also it became very
difficult for me to keep track and update of the files since it was one of my job duties. This is
the most important thing about which IDLC should take necessary steps as early as possible.
Monitoring BRISK: During my internship one of my tasks was to monitor and follow-up
IDLC’s third party BRISK Management. In many cases I found that they were late in
verifying the CPVs or sending them to IDLC. In such case I had to pursue them
continuously. Such delays used to slow down the regular works of the Credit Analysts. Even
sometimes disbursement of loans to the clients become delayed due to the pending verified
CPVs. So IDLC should be strict in regulating BRISK to avoid such problems.
50
Conclusion:
Being the largest NBFI of the country IDLC Finance Limited is setting remarkable footprints in
the economic development of the country. The company’s business is experiencing growth in
every year. Among many other factors the increasing loan applications from consumer client
segment is also contributing in this growth. Highly skilled, experienced, and competent
employees of the Credit Risk Management Department of Consumer Division ensure quick and
proper delivery of services. Due to this the company is competing head to head with both local
and multinational banks in this client segment. Simultaneously this department is very strict in
complying with the rules and regulations set by Bangladesh Bank. Because of these factors, this
department of IDLC is a very good place for a Finance graduate to do his/her intern. One will get
precious opportunity to real life issues dealt by a financial institution by doing internship here.
Also this provides a very good networking opportunity. Therefore I suggest fresh graduates to do
his/her internship in this department of IDLC Finance Limited.
51
Appendix
52
Journal – 1 (5th – 7th May, 1st Week)
Name of Intern: Md Tahmidul Huq
Name of the Organization: IDLC Finance Ltd.
Faculty Advisor: Sheikh Mohammad Rabby
Date of Journal Submission: 29th May, 2015
Works Done During the Week:
 Read the Annual Report of the company to get to know about the company, its
management body, financial products, principal customers, and competitors.
 Met with all the officers, executive officers, assistant managers, and senior manager of the
department as well as the head of the department.
 Performed some appraisals (documentation of the clients).
Learning and achievements:
 I got to know about the functions, activities and work process of the department through
discussion with my internship supervisor Mr. Reaz Hassan Awwal, an assistant manager
of the department.
 I was acquainted with the different rules and regulations of the department, following
which the tasks of the department are accomplished.
 I came to know about the responsibilities of the employees of the department with
different ranks and their reporting relationships.
 While performing appraisals I was able to learn some basic functions of Microsoft Excel.
Observations:
 The working environment of the department is very friendly and professional. Moreover
there is no distance between senior and junior employees.
 The department’s task involves a lot of documentation, most of which are done by using
various software e.g. Microsoft Excel, Flexcube etc.
Notable Incidents:
 There was no notable incident in this week.
53
Journal – 2 (10th – 14th May, 2nd Week)
Date of Journal Submission: 30th May, 2015
 In the second week of my internship, I performed some more appraisals. However I took
less time than my first week, so I felt my efficiency was increasing.
 Maintained a pipeline of incoming and outgoing files of loan applications.
 Prepared a record of which loan application would be analyzed by which specific credit
analyst with the help of cluster managers of the department.
 Learned some more functions and applications of Microsoft Excel. Achieved greater
efficiency in operating the software thereby.
 Learned how to prepare and maintain a pipeline of incoming and outgoing files and
assigning the files to specific credit analyst.
Observations:
 All the works done in this organization is done in a very precise, systematic and
methodological manner.
 Credit risk management involves vital decision making of disbursing loan or rejecting a
loan application. Therefore each and every loan application is critically analyzed and
checked in multiple times and in multiple levels.
Notable Incidents:
In the 3rd day of the week, i.e. in 12th May’15 two earthquakes happened in just thirty minutes
span. The office of the corporation is located in Eunoos Center of Dilkusha C.A., which is a
multistoried building. So many people got frightened, started screaming and running to and
fro. Soon the entire building was evacuated. After an hour we were able resume our work. In
the very next day the, an earthquake drill was organized by IDLC in its premises.
54
Journal – 3 (17th – 21st May, 3rd Week)
Date of Journal Submission: 3rd June, 2015
 In this week I performed a new task, which is preparing and sending CPV (Consumer Point
Verification) requests to the company’s third party BRISK Management. Three different
types of CPV requests e.g. Address, Rental and Bank Statement were prepared and sent as
per the demand of the department’s Credit Analysts. In case of Bank Statement verification
requests I had to prepare Bank Forwarding Letters which actually authorizes BRISK to
verify clients’ bank statements on behalf of IDLC Finance ltd.
 Trained up the newly recruited interns for three consecutive days besides performing my
regular tasks.
 I learned about how to prepare Bank Forwarding Letters and send CPV requests to BRISK.
 Learned about the work process and operations of BRISK Management.
Observations:
 All the teams involved with department e.g. sales team, team of Credit Analysts, team for
technical valuations, MIS (Management Information System) team, IT (Information
Technology) team, team for legal issues etc. meet and communicate with each other at
regular intervals to run their operations in a synchronized fashion.
Notable Incidents:
 With a view to manage increasing work pressure of the department two new interns were
recruited in this week. In one of the days of the week, we were invited in a boardroom
meeting by a senior manager of the department. He briefly discussed about the
functionality and operations of the department and their future plan. He ended up the
meeting describing us our duties and responsibilities as interns of the department.
55
Journal – 4 (24th – 28th May, 4th Week)
Date of Journal Submission: 6th June, 2015
 In the first three weeks of my internship I performed only the appraisals of “Car Loan”. From
this week I started doing appraisals of “Home Loan” as well which encompasses more
diversified, sensitive and complicated issues.
 I was given the responsibility to prepare presentation slides in Microsoft Powerpoint for a
corporate meeting between department personnel with some senior managers of the company.
 Learned how to prepare appraisals of different types of Home Loans e.g. Flat Purchase, Home
Equity Construction, Land Purchase, Construction Loan etc.
 Learned about various aspects of a corporate meeting. Most importantly I got a flavor of how to
present and discuss things with senior managers and colleagues in meetings.
Observations:
 Both entry level employees and mid level managers do not hesitate to share their suggestions,
opinions, problems or any work related issues with the senior managers and top management of
the company. Senior managers also try to give feedback and provide solutions of the problems
faced by their subordinates as soon as possible and on a regular basis. So both top-down and
bottom-up communication approaches are practiced in IDLC Finance Ltd.
Notable Incidents:
 Upon my keen interest and enthusiasm, I was the only intern to be invited in the meeting held
between department personnel and senior managers of the company in this week. This was my
first experience to attend a corporate meeting. Therefore I was excited and nervous at the same
time. After some editing and corrections my prepared presentation slides were presented by two
managers of the department. Surely it was a great experience for me.
56
Journal – 5 (31st May – 4th June, 5th Week)
 In this week I was given an IDLC email address i.e. Tahmidul@idlc.com. I was assigned a new
task of updating senior managers about the loan applications on a daily basis. For this I have to
check the pipeline of incoming and outgoing files. I cross checked them with emails of branch
heads of two sales channels of IDLC i.e. Nationals Sales (NS) and Branch Sales (BS). Finally in
every morning I have to send an email to senior managers of the department about how many
loan applications were made from which sales channel in the previous day, which application
will be analyzed by which credit analyst etc. In CC I keep all executives of the department.
 I was acquainted with the features of Microsoft Outlook, a very common communication tool in
almost all corporate organizations. The significant thing I have learned is keeping all the
concerned persons in CC to avoid any sort of miscommunication or misunderstanding.
Observations:
 The support departments of the company are very efficient in giving all necessary support and
quick solutions of different problems to its mother departments.
 All sorts of communications among the department personnel are made via Microsoft Outlook.
Moreover there is a public folder in the IDLC Drive which facilitates the transfer and exchange
of softcopies of files among them. Use of any flash or portable drive is highly discouraged.
Notable Incidents:
 In one of the days the server of the department, IDLC Drive went out of order. Some very
important files were lost from the drive as a consequence. Then the IT Department was
contacted over phone without any delay. Within an hour they fixed the problem efficiently. As a
result we were able to retrieve our lost files and resume our works.
57
Journal – 6 (7th June – 11th June, 6th Week)
 In this week I took a new responsibility i.e. preparing monthly bill for the BRISK Management.
A bill was sent by BRISK in the first week of the month. My job was to crosscheck it by going
through all the entries made for Address, Rent, and Bank Statement verification for May’15 in
the CPV Pipeline. I found some discrepancy in the BRISK’s bill with my counts and
calculations. I contacted with BRISK to notify them about this discrepancy and requested them
to issue a new and corrected bill. After their issuance of a new bill I checked it again, got it
signed by authorized persons of the department. Finally the bill was disbursed to BRSIK.
 From this week I have started incorporating two different types of reports i.e. Technical
Valuation Report (TVR) and Construction Progress Report (CPR) while performing appraisals
for Home Loans. These branch-wise reports are prepared by IDLC Technical Teams after their
on site visit to different sites. I obtain them from a public folder of the department in Outlook.
 I have learned how to crosscheck and prepare monthly bills for BRISK Management.
 I got to know about the operations and activities of IDLC Technical Team. Another lesson learnt
by me in this week was how to incorporate technical reports with appraisal of loan applications.
Observations:
 Every crucial information for loan disbursement decisions are crosschecked carefully and with
special emphasis by various teams e.g. BRSIK Management, IDLC technical teams etc.
Notable Incidents:
 In this week one of the credit analysts of the department got promotion upon ending his
probationary period. One day he treated us all with lunch in a local restaurant. Later in an
informal discussion with him I got to know about his successful journey in the company.
58
Journal – 7 (14th June – 18th June, 7th Week)
In this week I got myself involved in a new task i.e. assisting one of the credit analysts in analyzing
a loan applicant’s financial statements. The person had multiple businesses. Therefore he provided
financial statements of each of his businesses along with the loan application as per requirement.
My task was to calculate and cross check different important figures e.g. total asset, total fixed
asset, gross income, net income etc. These are required for judging the applicant’s credibility to get
a loan and determining whether the person is eligible to get the amount of loan he has applied.
Almost half of the period for my internship in the company has passed – one of the probationary
officers in my department pointed this out and praised me for the advancement I have made in this
short period of time. Hearing this, two other managers praised my works too and thanked me for the
support I was providing them. Such admiration from my colleagues is obviously a significant
achievement for me. It motivated me to be more dedicated and perfectionist in my works.
Observations:
I observed how managers at different levels are involved in loan disbursement decisions. For
example, if a credit analyst is satisfied with the credibility and eligibility of a loan applicant, s/he
can sanction loan amount up to 2.5 million. The cluster managers are authorized to sanction loan
amount up to 5 million. The senior manager and branch manager of the department are authorized
to sanction loan amount up to 7.5 million and 10 million respectively. Any application for a loan
amount higher than 10 million requires review and analysis of Executive Committee (EC) of the
company. But whatever the loan amount is it requires approval from senior managers and EC.
Notable Incidents:
There was no notable incident in this week.
59
Journal – 8 (21st June – 25th June, 8th Week)
 In this week applications for loan increased significantly. Hence I had to perform a lot of
appraisals. Besides appraisals I was asked to check CIB status for an individual applicant. This
report is actually prepared by Credit Information Bureau (CIB) of Bangladesh Bank. It shows
the loan account status of an individual if s/he has loans from a bank or any other financial
institution. If it shows that a particular client has record of loan default then his/her application
for loan is declined on this ground.
 The company has a meager share of personal loan in its entire loan portfolio. As per its decision
to increase the share of personal loan, the inflow of applications for Personal Loan increased
suddenly. So for the first time I got a chance to perform appraisal of Personal Loan.
I have learned how to check CIB status of an individual and incorporate CIB tracking number in
loan applications. Moreover I have learned how to perform appraisals of Personal Loan.
Observations:
IDLC Finance Limited considers Personal Loan as an unsecured loan and the company gives this
loan only to its existing clients who have been proved creditworthy before.
Notable Incidents:
In one of the days of the week some credit analysts and we, the interns of the department, decided to
go to the Fatullah Stadium in Narayangonj to watch the 2nd One Day International match between
Bangladesh and India. Our internship supervisor spontaneously gave us permission to watch the
high voltage match in stadium and therefore we left the office early in that day. Later we altogether
got a precious occasion for colorful celebration since our team won that match and by which they
confirmed winning the series as well. Obviously it is one of the most memorable days of my life.
60
Journal – 9 (28th June – 2nd July, 9th Week)
Date of Journal Submission: 4th July, 2015
 In this week I took the responsibility of accomplishing DIRS (Daily Inventory Report System).
This is actually an MS Excel sheet showing how many loan applications each Credit Analyst
has sanctioned, rejected, has put in CEC (Credit Evaluation Committee) proposal or under
process. For preparing this, I requested all the credit analysts to keep me informed about the
files they have sanctioned, rejected, have put in CEC proposal and in their inventory (under
process) through email on a daily basis. As per their updates my task was to update the statuses
of the incoming files in the Pipeline everyday and prepare DISR. Finally I had to email it to all
the Credit Analysts and managers of the department in every Thursday.
 Besides preparing DISR on a daily basis I had to do a lot of appraisals of the loans. I also
maintained the Pipeline, CPV Pipeline and prepared the monthly bill for BRISK Management.
 I have learned how to update the statuses of the files in the pipeline based on the daily file
updates by the credit analysts and prepare DISR accordingly.
Observations:
 If it is found that for a particular Credit Analyst there is more than twenty loan applications in
his/her inventory (due to under process), he/she may be asked to reduce the files in inventory or
share the pressure with his/her teammates.
Notable Incidents:
 In this week Mr. Asif Saad Bin Shams, Head of Consumer Credit (HOCC) of the company
visited us. He discussed with us and shared his plans and views about this department. He also
talked with us, the interns for a few minutes. He asked us about our academic background,
learning and working experience in the company, whether we had any suggestion etc.
61
Journal – 10 (5th July – 9th July, 10th Week)
 In this week I have to do some tasks regarding the verified old CPV papers. In this department in
every three months the verified CPV papers are cleared out. Therefore I checked their status
through their CIFs (Client Identification Number) and segregated them accordingly. Then I
grouped them based on their branches and sent them back to their respective branches.
 Upon my request I was given permission to work with sales team for two days. Under the
supervision of one of the managers of National Sales (NS) Channel, Mr. Mashiur Rahman I
made lists of potential clients and IDLC’s existing clients who may take loans. I was assigned
with one of the Relationship Managers (RM) of the department, Mr. Ibrahim Ali. Along with
him I met with several listed potential clients and proposed them to take loans from IDLC. I
filled up several loan application forms, collected necessary supporting documents e.g. salary
statements, details of physical assets and investments, car quotation papers, business details for
businessmen etc. I also filled up several CIF creation forms and CPV request forms.
 I have developed an idea about how the sales team of IDLC actually operates. I created fully
fledged loan application via collecting all necessary supporting documents, filling up CPV
request and CIF request forms all of which enriched the horizon of my knowledge.
Observations:
 As per the loan amounts the processed loan applications require approval from managers in
different tires. Besides this, each and every credit analyst is bound to put the loan applications in
CEC for the approval of Credit Evaluation Committee through email.
Notable Incidents:
 In Sunday an Iftar Party was arranged by the company. As interns, we were also invited in the
party. I stayed after the office hour and attended the Ifatr party along with my colleagues.
62
Journal – 11 (12th July – 16th July, 11th Week)
 In this week due to sickness of one of the interns, I took the responsibility of distributing verified
CPVs on my shoulder. To perform this task, in every morning I used to check the pipeline of
incoming files and their Credit Analysts. After that I distributed the verified Address, Rental,
Bank Statement and Letter of Introduction CPVs to the Credit Analysts of individual file.
 Upon my keen interest, an Executive Officer (EO) of the department, Mr. Sabbir Ahmed gave
me the precious opportunity to interview one of the clients, who applied for Car Loan. For this, I
made a call to the client using Microsoft Lync, asked him several questions according to a
questionnaire and simultaneously noted down all the critical information. Later based on the
interview I made a detailed profile of the client which covered mostly about his business
information and some of his family information e.g. number of children, monthly expenditure
etc. Finally I gave it to Mr. Sabbir, the credit analysts of the loan application.
 I performed my routine tasks of performing appraisals, making entries in the pipeline of
incoming files, sending CPV requests with Bank Forwarding Letters and updating CPV pipeline.
 My major learning in this week was how to interview a client using the Microsoft Lync
software, collect and verify all necessary information and prepare his/her profile accordingly.
Observations:
 Interview of clients is one of the major requirements for analyzing a loan application. Its prime
objective is to verify all the provided information by a client to the Relationship Manager while
preparing his/her loan application. This is also accomplished to avoid information mismatch and
collect additional information from a client if necessary.
Notable Incidents:
 There was no notable incident in this week.
63
Journal – 12 (20th July – 23rd July, 12th Week)
 In this week I was introduced with a new department of the company called CAD (Credit &
Disbursement). In that department I worked for a day under the supervision of Mr. Zia. This is
the department that actually disburses the loan to a particular client. Moreover this department is
concerned for the collection of loan installments.
 In Thursday of this week, I got the cherished opportunity to visit a client with Mr. Nazran Kabir,
a probationary officer of the department. We visited the client’s business in Dhanmondi,
collected some additional necessary information, and verified some critical information too.
 In this week I started to prepare an article on “Money Laundering” for July issue of a monthly
magazine “IDLC Monthly Business Review” published by IDLC Knowledge Center. I emailed
it to a given email address and after some correction and editing it was finalized for publication.
 In this week, for the first time I made some entries through Flexcube, a software manufactured
and distributed by Oracle Financial Services Software Ltd.
 I got a valuable insight about the operations and activities of CAD department of the company.
 The practical orientation of client visit is one of the most important learning outcomes in my
whole internship tenure. To me, it was like putting oneself in the shoes of an investigator.
Observations:
 After a loan is sanctioned, the particular credit analyst of that loan application authorizes CAD
the disbursement of loan to the client by making Flexcube entries.
Notable Incidents:
 In this week a fake loan application was caught. Another loan application was rejected due to
forged bank statement of a loan applicant. As a result, the Relationship Managers of those loan
applications were called in person and were cautioned by some credit analysts of the department.
64
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Course: BUS 498 (Internship)

Company: IDLC Finance Limited

Department: Credit Risk Management – Consumer Division

Lecturer, School of Business

North South University

Student ID: 1120212030

Date of Submission: 17th August, 2014

August 17, 2015

Mr. Sheikh Mohammad Rabby

Subject: Submission of Internship Report

Present Industry Overview in light of Porter’s Five Forces Model……………………………..22

My Tasks, Assignment and Contribution in the Organization………………………………… 34

Scope of the Report:

Objectives of the Report:

Limitations of the report:

About the Company:

IV. Capital Markets

IDLC Securities Ltd.

Audit Committee Executive Committee

CEO & Managing Director

SME Division CMO & CFO

Credit Evaluation Committee

CSR Service Delivery

The City Bank Limited 50,283,256 25.00

Institutions other than Sponsors/ Directors

Sponsors/ Directors Institutions other than Sponsors/ Directors Individuals

Figure 1: Shareholding Structure of IDLC at a glimpse

Service Suite of IDLC Finance Ltd.:

 Medium Enterprise Finance

 Supplier and Distributor Finance

Overnight Borrowing/ Placement

 IDLC Securities Limited

 IDLC Investments Limited

Milestones of IDLC Finance Limited:

23 May 1985 Incorporation of the Company

a) Intra Industry Rivalry:

b) Threat of New Entrants:

c) Bargaining Power of Buyers:

d) Bargaining Power of Suppliers:

Selim R.F. Hussain, CEO and Managing Director

Teams and Persons:

Mr. Mehedi Mahmood Khan, Assistant Manager

Mahmood N. Faruquee Mostafizur Tarannum Huq Sakib

Table 1: Gulshan Cluster at a Glimpse

Members of Dilkusha Cluster:

Table 2: Dilkusha Cluster at a Glimpse

Head of Car Loan (HoCL):

Mr. Reaz Hassan Awwal, Assistant Manager

Table 3: Car Loan Team at a Glimpse

Home Loan (HL):

Availability of Home Loan:

Factoring Affecting Home Loan:

Commercial Purpose: Maximum 7 years for any profession.

Interest Rates and Fees:

Car Loan (CL):

Eligibility to avail Car Loan

Personal Loan (PL):

Interest Rates and Fees:

Diagram: Steps in credit risk management process

Cluster Manager of Cluster Manager Head of Car Loan

Credit Analysts of Credit Analysts of Credit Analysts of

My Tasks, Assignments & Contribution in the Organization:

Maintaining Pipeline of Incoming Files: