Rural Banking & Credit Program:
A vast majority of the Bangladeshis live in the rural areas and their main source of income is agriculture and agro-business. Janata Bank Limited has opened branches in rural areas to cater to the banking needs of rural people. Apart from accepting deposits from the rich and moderately well-off villagers, Janata Bank Limited encourages the poor people to make small savings through different mechanisms. It also lends to the poor landless so that they can make a living. The average loan size is about Taka 20,000.00.
Objectives Of  Rural Credit Program
The objectives of the Janata bank are to increase agricultural production and improvement its quality and gear up socio-economic activities among rural people. To create employment opportunities among rural people through providing economic support and Creating confidence among the beneficiaries on institutional credit and their access to improved production practices / activities. To build up asset by creating saving habit among the rural population and poverty reduction.
The major  agricultural / rural credit programs :

• Short term crop production loan program:

The loan is one of the most important of Janata bank. Every year Janata bank earned a lots of money from their loan sectors. Purpose of loan is sanctioning of loan to farmers for crop production. The security of the loan is crop hypothecation and personal guarantee of the borrowers. The rate of interest of the loan is 8%. Duration time of the loan is 6 months to 9 months, Maximum 12 months and repayable at a time after harvesting and marketing of crops.

• Horticulture development loan program:  

To extend financial help to the farmers who are interested to cultivate betel-leaf, banana, pine apple etc. Its rate of interest of the loan is 8%. Duration time of the loan is maximum 1year 6 month from the date of disbursement. Repayable in weekly / monthly / a single installment after crop harvesting and marketing.

• Fishery Loan Program:

To increase fish production in pond and to create employment opportunity for pond                         owners and lease holders by providing credit for pond re-excavation and fish cultivation. The security is pond, in case of pond owner and other properties in case of lease holder are being taken as a registered mortgage and its rate of interest of the loan is 8%. Duration time of the loan is 4years 6 month and repayment of the loan is entire amount of loan with interest is repayable by 4 equal installments. First installment is due for recovery after 18 months from the date of disbursement.

• Shrimp Culture Credit Program:To encourage the shrimp cultivator to produce more shrimps by utilizing modern production practices in order to earn more foreign exchange. The security of the loan is hypothecation of produced shrimp. Collateral security such as land & building are being taken as a registered mortgage and its rate of interest of the loan is 8%. Duration time of the loan is 10 months.
• Irrigation & Agricultural Equipment Credit Program: Loan is given for the purchase of irrigation equipment’s i.e. Shallow Tube Well (STW), Low Lift Pump(LLP), Deep Tube Well (DTW) etc. & Agriculture equipment i.e. Tractor, Power Tiller etc. to increase agricultural production. The Eligibility of loan owner at least 0.5 acre of land in case of irrigation equipment loan and genuine farmer in case of agricultural equipment loan are eligible. The rate of interest of the loan is 8%. Repayment of loan is entire loan amount with interest is repayable by 11 equal half yearly installments within 6(six) years with a grace period of 6(six) months.

This is all of micro-credit program of the Janata bank limited. These credits are earning huge revenue for the bank. The rate of interest of rural-credit is reasonable. Bank is giving loan to micro-credit program sector and generating profit. The rural-credit program is one of the better source of profit for the from which both bank and the customers are being benefited.

Entrepreneurship development Programs:
1, Women Entrepreneur Development Credit program
The target of the product is prospective women entrepreneurs those who are producing goods by themselves or through others. The eager to utilize their educational/professional experience and like to set up new  projects or BMRE of existing projects and need working capital. The eligibility of clients is the women entrepreneurs asking for loan should have minimum   literacy. She should be agile, having will power & innovation traits. Women who have need based/job specific training & skill. The rate of interest of credit program is 10%. The security of the credit is personal guarantee of the applicant, Personal guarantee of the applicant’s husband/father or earning members from any dears & near one’s, guarantee from any known & highly acclaimed person of the society/organization to be obtained.
2.Cyber Café :
The product target is trained youth in computer technology. The object of the product is to create employment opportunity for the unemployed trained youth and expansion of information technology. To purchase computer, server, networking, Internet connection, Printer, Scanner, CD writer, UPS, Decoration etc. The rate of interest of the product is 12%. The security of the product is loans up to Tk. 3.00 Lac, no collateral is required and above Tk. 3.00 Lac collateral is required (1.5 times of loan). In case of no collateral , advance dated cheques (one for each installment and additional one)  are to be taken. Hypothecation of computer and all other equipment’s. In case of no collateral security, 3^rd person guarantee is required. The rate of interest of credit program is 12%.
3.Doctors Loan Scheme:- The target of the loan is MBBS or its equivalent degree holders registered Doctors like Medical Practitioners, Eye Specialist, Cardiologists, Surgeons, Dentists etc, any group of doctors or any institution/company formed by the doctors may apply for availing this loan in the bank’s prescribed form. The rate of interest of credit program is 13%.
3.Small business development loan scheme:- The target of the loan is who are running the business by purchasing shop’s possession or renting for a specific time. The objective of the loan is expansion of existing shop & providing term loan/working capital to existing shop. The rate of interest of credit program is 11%.

Special Credit Program

1. Seed Development Program:- The program is very important for the both bank and customer. The target of the loan is farmer’s Seed Company (FSC). The objective of the loan is to extend loan to farmer’s seed company for procurement, processing & marketing quality seeds for the development of private seed sector. The rate of interest of credit program is 10%.
2. Loan for Handicapped/disabled people:- The target of the loan is physically handicapped/disabled people who has the expertise and intelligence to conduct  the economic activity. The objective of the loan is to raise the income and living standard of  handicapped people by self employment. To help build self reliance and to bring them  into the mainstream of economic activities. To provide assistance for increasing efficiency  at work and in their own professions. The rate of interest of credit program is 10%.
3. Hybrid Milking Cow Rearing (HYV-Milch Cow):- Farmers of Pabna & Sirajgonj region where they developed their skill ness  in milking cow rearing due to suitable grazing land and weather. The milk production capacity of local and  cross breed cow of  Pabna & Sirajgonj region is better. Milk Vita & other milk processing unit have established in these regions. As a result , a potential  milk market  has  created. Considering this fact,  A small credit program ( For establishment of family based rearing farm ) has been undertaken. The rate of interest of credit program is 10%.
4. Credit for Flower plantation & Garden:- Unemployed youth having trainings /experiences in  flower  plantation and garden. At present flower cultivation is an important sector at home & abroad. Its use has become widened day by day. Flower cultivation and business is now commercially profitable in the domestic & export market. To encourage this trade, our bank has initiated a credit program for flower cultivators. The rate of interest of credit program is 10%.
5. Credit Program for Goat Rearing:- Unemployed youth who have got training on goat rearing in semi intensive system. Besides this micro credit is given for thepoor. To alleviate poverty & unemployment problem. The rate of interest of credit program is 10%.

Other Credit Programs: 

1. Credit for Employees-2000:- Employees of different Govt/Semi Govt./Autonomous body/University/College/School/NGOs etc. To meet up the emergency/personal need (e.g. treatment, marriage, travel cost, maternity or for specific activities (e.g. agri. or non agri. purposes etc.) of employees. The employees of above mentioned organizations  excepting Janata Bank Limited. The rate of interest of credit program is 13.50%(Changeable)%.
2. Consumer Credit Scheme-2003:- The target of the credit is fixed income earners. The objective of the credit is to improve standard of living . The rate of interest of credit program is 14%(Changeable).
3. Mushroom Cultivation Loan Program:- To meet up nutritional requirement of most of the people of the country, Creation of self-employment and reducing of poverty. The loan limitation is minimum 5000/- and maximum 25,000/-. Loan repayment period is short term (Maximum 10 months). The rate of interest is 8% (Changeable from time to time as per bank’s interest norms).

This is all of micro-credit program of the Janata bank limited. This credit is earning huge revenue for the bank. The rate of interest of micro-credit is reasonable. Bank is giving loan to micro-credit program sector and generating profit. The micro-credit program is one of the better source of profit for the from which both bank and the customers are being benefited.


Total =                271                69509300.50           1916.00         69509300.50           

Total balance of Janata bank (Patuakhali main branch) (31/01/2010)                                                                                                           (TK)
Total Assets	193510183.17
Total Liability	193510183.17
Total Deposits	175886479.69
Total Advances	69509300.50
Less: interest Suspense	110407.00
Total Net Advances	69398893.50

Total =            202              97612959.50               50,000.00            97612959.50             
                                    

Total balance of Janata bank (Patuakhali main branch) (31/01/2011)                                                                                                           (TK)
Total Assets	228170612.68
Total Liability	228170612.68
Total Deposits	222500845.68
Total Advances	97612959.50
Less: interest Suspense	100032.00
Total Net Advances	975129275.50

Total =                 323                152986983.67          82746.82       152986983.67

 Total balance of Janata bank (Patuakhali Main Branch) (31/12/2012)

Total balance of Janata bank (Patuakhali Main Branch) (31/12/2012)                                                                                                          (TK)
Total Assets	255095438.60
Total Liability	255095438.60
Total Deposits	241000786.60
Total Advances	152986983.67
Less: interest Suspense	116180.00
Total Net Advances	152870803.67

Last three years overall loan performance of Janata Bank Ltd. Patuakhali Main Branch

year	Net Loan	Total no. of Loan
2010	Tk.69398893.50	271
2011	Tk.975129275.50	202
2012	Tk.152870803.67	323

                

The position of Loan of Patuakhali Main Branch Janata Bank Limited:

Advance is a significant side for any bank. Any banks financial status depends on its Credit Department performance. Janata bank is one of the leading banks of Bangladesh and it is one of the representatives of Bangladesh bank. Every year Janata bank gives huge amount loan and Bangladesh government are getting huge profit from that loan. Bank transactions are increasing speedy by owner interest. But many loan conditions are not well of Janata bank. So, those loans are creating obstacle for improving transactions.

Advance and deposit sectors of Janata bank are helping the bank economically. Such as, the bank is earning huge amount of money from advance every year. Advance is the main earning side of a bank. Customers are taking big loan from Janata bank which is very profitable for Janata bank and also Bangladesh government. The bank & customers both are highly benefited by this loan system. Now a present overall condition of Janata bank is good and the condition of loan of Janata Bank Patuakhali Main Branch is good position that I find by comparing last three years data of Credit/Advance department.

Every year the bank is getting a lot of money from the customers deposit and interest of loan. On the other hand customers are benefited from the deposits. Janata bank is carrying huge deposit which is very profitable for the bank. From this deposit money, bank is able to offer huge loan to customers. One of the problem  of this   Bank that it  cannot provides their loans or can’t find better creditor. It is very risk able process for any bank loan system. That can be damage banks economically status. It is low risk if the bank offers their loan in different sectors. If any loaner becomes defaulter the others loan will recover.  So, it’s clear that bank will be benefited if its provides their loan in various sectors. Loan is one of the main source of income which is great significant for bank. Finally we can say bank should be gives their loan in various sectors which is very profitable and financial status will increase rapidly and bank will not carry the risk.











Findings:
The main objective of the report is to analyze over all Loan activities of Janata Bank Limited, Patuakhali Main Branch. The main findings are:

v     Deposits:

Every year the bank is getting a lot of money from the customer’s deposit. JBL, Patuakhali Main Branch.. Branch deposits fund gradually increases last three years (2010,2011 and 2012) correspontly in amount Tk. 175886479.69, Tk. 222500845.68, and Tk. 241000786.60.
Every year the bank is getting a lot of money from the customer’s Patuakhali Main Branch of JBL deposits fund gradually increases for the last three
huge deposit which is very profitable for the bank. From this deposit money bank is able to offer loan to customers

v     Advance/Loan :

Advance is a significant side for any bank. Any banks financial status depends on its advance & loan. Every year Janata bank Ltd. Patuakhali Main Branch gives huge amount loan and Bangladesh government are getting huge profit from that loan. It gives loan Tk. 69509300.50 in 2010, Tk. 97612959.50 in 2011, and 152986983.67 in 2012.

Graphically present the performance of Advance department of Janata Bank Ltd. Patuakhali Main   Branch :


From last three years  data analysis we see that Janata Bank Ltd. Patuakhali Main Branch loan performance is in good situation that display in this graph…….2012 is good than 2010 but 2011. its increase than before the last 2 years. So for its stable market position and needed t0 proper banking policy and Govt. assistance to hold its good position in the market.

v     Loan product:
Al though the loan and advance position of Janata bank Ltd. Patuakhali Main  Branch is increasing but its offer few loan products which are not sufficient. Number of loan of last three years transactions is:

v     Micro-credit program:
Janata bank Ltd. Patuakhali Main Branch also offers a micro credit program that generating profit but its main objectives is socio-economic development. The rate of interest of micro-credit is reasonable. The micro credit facilities is not at bad position of Patuakhali Main Branch but  it can be increase to develop our economic situation. The last three years invested money- Tk. 18826436.00 in 2010, Tk. 18571505.00  in 2011 and  Tk20870044.00 in 2012

v     Profitability:
Advance is the main earning side of a bank. Bank profitability depends on loan performance. Although the condition of loan of Janata Bank Patuakhali Main Branch is increased position in this year and overall position is also in good  position and continue its profitability.

SWOT ANALYSIS:

SWOT is an acronym that stands for strengths, weaknesses, opportunities, and threats.  It is a careful evaluation of an organization’s internal strengths and weaknesses as well as its environmental opportunities and threats. In SWOT analysis, Janata bank limited would get the best strategies accomplish its mission by (1) exploiting its opportunities and strengths while (2) neutralizing its threats and (3) avoiding (or correcting) its weaknesses.

Strengths: ü                                 Strong market share ü                                 Strong networking of branches ü                                 Diversified product lines ü                                 Low cost of fund ü                                 Satisfactory business growth ü                                  skilled  top management	Weaknesses: ü                                 Moderate Asset quality ü                                 Moderate liquidity position ü                                 Moderate Risk Management   System ü                                 Average operational performance ü                                 Poor customer service
Opportunities: ü                               Increasing awareness of Janata banking System. ü                               Agro based industry investment ü                               Real time online banking ü                               Global existence.	Threats: ü                                 Increased competition in the market ü                                 liquidity crisis in money market ü                                 Government Intervention ü                                 Lack of sufficient  skill person.

Recommendation:

Though Janata Bank Patuakhali main Branch is performing well but it has some crucial areas to improve which are prescribed below:

1. Competition is increasing day by day and every commercial bank is now utilize modern technology So, JBL needs to utilize these modern technologies to attractive loan products.

1. JBL needs to recruit skilled human resources which can turn the bank ahead.

1. To ensure good customer service for existing competitive market.

1. JBL’s investment processing should become easier than other conventional banks.

1. To Improvement of advance and loan position by :

• Providing good customer service.
• Providing lower interest rate.
• Attractive advertising.
• Reliable loan application process.

1. JBL should provide diversified  loan products which will more attractive to the target customer.

1. Loan division is required to adopt and implement accurate programs that will give error-free calculations, because miscalculation is a gross mistake that can adversely affect the organizations’ reputation and reliability.

1. To be more innovative for new profitable loan.

1. Government should decrease their unethical intervention and should help in loan collection.