Report on

Comparative Analysis of SME Loans of 5 Different Banks in Bangladesh

Submitted to Professor Dr. A. K. M. Saiful Majid Course Instructor Managerial Economics

Submitted by Tanvir Ahmed Talukder Roll - 44 Batch: MBA 45D.

Institute of Business Administration University of Dhaka June 12, 2012

June 12, 2012 Dr. A. K. M. Saiful Majid Professor Institute of Business Administration University of Dhaka

Subject: Submission of the term paper on Comparative Analysis of SME Loans of 5 Different Banks in Bangladesh.

Dear Sir I am very much pleased to present you the report on Comparative Analysis of SME Loans of 5 Different Banks in Bangladesh. Working with this subject is an interesting and informative experience for me. Through this, I was able to know different banks SME loan products and their differences and by that I have made a comparison by the market portfolio and disbursements. I have learned from this study some unidentified facts, then I believe those will be supportive to my professional career and life. Your advice and continuous support has certainly helped me a lot to accomplish the desired goal. In case of any further query, please feel free to contact me. I will be available anytime at your convenience.

Sincerely Tanvir Ahmed Talukder, Roll-44 Batch: MBA 45D.

Table of Contents

(Page no) Chapter 1: Introduction

1.1 Origin of the study 1.2 1.3 1.4 Rationale of the study Research Question Objectives of the Study 1.4.1 1.4.2 1.5 1.6 Chapter 2: 2.1 2.2 2.3 2.4 2.5 Broad Objectives Specific Objectives

Scope of the study Limitations of the study Methodology Selection of Topic Formulation of Objectives Sampling Method Literature Review Data Collection 2.5.1 2.5.2 Primary Data Collection Secondary Data Collection

2.6

Data Analysis

2.7 2.8 2.9

Data Interpretation Report Submission Presentation

Chapter 3: Chapter 4: Chapter 5: Chapter 6: Chapter 7: Chapter 8: Chapter 9: Chapter 10: Chapter 11: Chapter 12: Chapter 13: Chapter 14:

Current Scenario of Banking Industry in Bangladesh Annual Demand and Supply Analysis of the Banking Industry Production Functions and Factors of production Cost Concept Market structure: Price and Output Decisions Application of Game Theory to analyze the Banking Industry Forecasting Techniques, Product life cycle and Statistical Models Government Policies, Taxation, Budget allocation and Interventions Data Analysis and Interpretation Major Findings Recommendations Conclusion

Bibliography Appendices Index

Introduction
Banking Industry has grown in Bangladesh in the last two decades at a considerable rate. This banking industry in Bangladesh is one of the most important sectors within the country's economy. In 2012, there are 47 scheduled banks in Bangladesh. 6 new banks have got license this year. SME industry is a very important part of a country like Bangladeshs growth. For this reason, Bangladesh Bank has taken measure to ensure the SME loan flow from the banks and FIs. Origin of the Study This report titled Comparative Analysis of SME Loans of 5 Different Banks in Bangladesh has been prepared for Dr. A. K. M. Saiful Majid, Course Instructor, Managerial Economics, as a partial requirement of the course. Rationale of the Study This study looks forward to find out the comparisons among 5 banks of Bangladesh regarding SME loan products and their disbursements. Objectives of the Study This study is completed following some objectives. These objectives are classified in two broad categories: Broad Objectives and Specific Objectives. These two objectives are given as follows: Broad Objectives Broad Objectives of this study are:

To Compare the SME loan products and their disbursements of 5 different banks in Bangladesh. Specific Objectives

Specific objectives that will guide this study are:

To know about the SME loan products of 5 different banks. To learn about the amount of SME loan disbursements of 5 banks.

To compare the data.

Scope of the Study The study seeks to find out present situation of the SME loan industry and roles played towards the economic advancement of Bangladesh. Furthermore this study also tries to find out the SME loan products and their differences of the respected banks. The banks I study are- BRAC Bank, Prime Bank, Limitations of the Study Though this study will tend to cover all the necessary aspects necessary to fulfill the study objectives but yet again this may face some limitations. Limitations of the study are could be:

Lack of intensive primary data due to classified source. Time constraint.

Methodology of the Study

Selection of Topic To choose a suitable topic is prerequisite for the successful completion of a study. Different types of relevant subjects, products, product lines are analyzed and examined to generate a suitable topic. So to analyze the banking industry the study topic has been selected: Comparative Analysis of SME Loans of 5 Different Banks in Bangladesh. Formulation of Objectives To guide the overall research and to find out the satisfactory answer to the research question initially Broad Objectives have been generated those were followed by the specific objectives. As objectives of the study steer the research work that is why special importance has been given to formulate the research objectives. Literature Review Different sources like books, published journals, articles, web page information and different resources from press media have been analyzed. Data Collection The full fill the study objectives and to meet the answers of the research questions successfully different types of data are needed. To accumulate the relevant data both the primary and secondary data survey has been conducted. Primary data collection includes key informants interview, checklist etc. Secondary data collection includes like data mining from different web pages, literature review etc. After the completion of the survey necessary data has been sorted out and arranged in a convenient way for further operations. Data Analysis From both the primary and secondary survey different types of data has been collected. The next step is to analyze the collected data accordingly. Suitable and best fitted analysis will behas been conducted to generate necessary information about the data. Data Interpretation

The next step of the research is to extract the sense and inner meaning for the analyzed data. Data interpretation let the researcher to draw the recommendation and conclusion of the subject and furthermore major findings of the study is solely depended upon this part. Report Submission After the successful completion of the project a term report has been submitted to the proper authority with necessary documents like Letter of Transmittal, Abstracts, and Acknowledgement etc.