Chapter-1
Introduction

1.0 -------------------------------------------------
Introduction

The industry of investment banking is large and far-reaching. It is complex and confusing. It is mysterious and even frightening. Fortunes and lives depend on it. What happens behind the walls of an investment bank each day can affect millions of families, even entire nations. In case of Capital market investment bank plays great role to maintain its efficiency.
The journey of Bangladesh capital market is not too old. Still it has a long way to go. The capital market of Bangladesh has yet to find a solid ground and the investor confidence in the market is significantly high, especially after the stock market crash in1996. Observing the poor performance of the market over the years the government has taken initiatives to reform the market. One of such step is to allow banks and non-banking financial institutions offering other financial and banking services to open up their investment banking wing. Investment banks facilitate flows of funds and allocations of capital. They are financial intermediaries, the critical link between users and providers of capital. They bring together those who need money to invest with those who have money to invest and they make the markets that allocate capital and regulate price in these financial transactions. One of the renowned names in Bangladesh financial market is IDLC Finance Limited. It started its operation in the year 1985 as the pioneer leasing company to facilitate lease financing and capital investment in industrial sector with the view of “Become the best performing and most innovative financial solutions provider in the country”. Over the years the company has evolved itself as a multi-product non-banking financial institution providing wide range of products and services. One of its major services is Investment banking operation, right now which is known as IDLC INVESTMENTS Ltd. The main focus on this report is to analyze Asian investment Bank what are the services offered by IDLC Investment Ltd.

1.1 Origin of the Report
Since the practical orientation is an integral part of the BBA degree requirement, I was deputed by East West University to IDLC financial limited to take real life exposure of the activities of the organization as a financial institution.
During my Internship at IDLC financial limited I have come across with different functions of the company. From them I have decided to work in the field of term loan procedures and performance analysis of IDLC financial limited. This paper have been originated the course requirement of the BBA program. I hope the paper will give a clear idea about the activities and role of term loan procedures and performance analysis as well as services or products offered by IDLC financial limited.
1.2 Objectives of the Study
There are some objectives behind every study and my work is not an exception. So I have also some objectives. The relevant objectives are listed below.

1.3 Primary Objective

My primary objective is to analyze “Services of investment Bank: A case study on IDLC Investments limited”.

1.4 Secondary Objective

* To understand investment banking * To understand the services of IDLC as an investment bank * Various activities of the Investment banking Division of IDLC. * Measuring & evaluating the performance of IDLC as an investment bank. * To understand the impact of investment bank in a country’s economy.

1.5 Methodology The methodology of the report is given below- * For the procedure of different operations of financial institution, I had observed the operations and worked with the officers at the same time. I had interviewed the IDLC officials for getting more information. * For the analysis part, data have been collected from different statements and the annual report of the IDLC. 1.6 Sources of Information The data collection method of study consists of both of primary and secondary sources.
Primary sources * Practical desk work * Face to face conversation with the officer. * Direct observations * Face to face conversation with the client

Secondary sources * Annual report of IDLC published by 2008,2009, 2010, 2011,2012 * Files & Folders * Memos & Circulars * Product or service brochure * Visit web site of IDLC * Many circular published by IDLC * Many circular published by Bangladesh Bank * Several Booklets of IDLC * CRE Training Materials. 1.7 LIMITATIONS

Throughout my internship period I got know a lot about investment bank’s activities. But
Still that was not enough. There are some limitations that I can’t ignore. The main
Limitations were:
• Three months are not enough to know all about an investment bank and as well as a company.
• Lack of physical presence of all types of investors in the office of IDLC Finance
Limited was a major limitation.
• Big investors are not accessible, because they are not interested to share information regarding their portfolio and investment in capital market.
• Another major limitation was inability to access some necessary secondary data
From IDLC database due to some management policy which was strict and no exception was made.

Chapter: 2
Company Overview

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2.0 COMPANY OVERVIEW

IDLC Finance Limited, Bangladesh’s pioneering leasing company, was incorporated in Dhaka on 23rd May of 1985.
IDLC was formed through the collaboration of 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 and Sadharan Bima Corporation.

Today, IDLC Finance is the leading multi-product Non-Banking Financial Institution in Bangladesh with 26 branches and 2 SME booths, and over 600 permanent staff across the Group. IDLC offers a wide range of loan and deposit products to its corporate, Consumer and SME clients segments, while operating in the Capital Markets through its two wholly-owned subsidiaries-IDLC Investment Limited, providing Merchant Banking Services, and IDLC Securities Limited, providing Brokerage services.

The IDLC Group has always been a standard bearer for the financial sector in terms of corporate governance, statutory compliance and ethical business practices. The Group is also highly regarded for its professional pool of resources and progressive work environment.

Initially it was named as Industrial Development & Leasing Company of Bangladesh. Right now it doesn’t carry any meaning of IDLC. It is a simple 4-Letter word and a brand name. The name of the company is now fully determined by IDLC Finance Ltd.

2.1 Vision
We will be the best financial brand in the country.

2.2 Mission
We will focus on quality growth, superior customer experience and sustainable business practices.

2.3 Corporate Philosophy

Discharge our functions with proper accountability for actions and results and bind
Ourselves to the highest ethical standards

2.4 Strategic Objectives: (2012-2013) * Grow and develop our taletn pool. * Fully leverage new core banking planform. * Optimize distribution points. * Grow and diversify funding Sources. * Grow sales and services capabilities in consumer division. * Aggressively grow SME portfolio. * Focus on top-tire clients in corporate. * Consolidate Capital market operations and enhance capabilities. * Enhance international accepted corporate governance and sustainable business practices.

2.5 IDLC CORE VALUES

Integrity
Walk the talk, no hidden agenda; never compromise our code of conduct

Customer Focus
We live for our customers

Trust & Respect
We keep promises; we are honest, transparent & compliant

Environment Friendly
We respect the environment and our culture

Simplicity
Be direct, simple & consistent, no jargons, transparent

Passion
One team one goal, exceed customer expectation, deep understanding of our market

Equal Opportunity
Gender/age/racial/religious equality and meritocracy

2.6 IDLC CODE OF CONDUCT AND ETHICS

In accordance with approved and agreed Code of Conduct, IDLC employees shall:

* Act with integrity, competence, dignity and in an ethical manner when dealing with customers, prospects, colleagues, agencies and public.

* Act and encourage others to behave in a professional and ethical manner that will reflect positively on IDLC employees, their profession and on IDLC, at large.

* Strive to maintain and improve the competence of all in the business. * Use reasonable care and exercise independent professional judgment. * Not restrain others from performing their professional obligations. * Maintain knowledge of and comply with all applicable laws, rules and regulations. * Disclose all conflicts of interest. * Deliver professional services in accordance with IDLC policies and relevant technical and professional standards. * Respect the confidentiality and privacy of customers, people and others with whom they do business. * Not engage in any professional conduct involving dishonesty, fraud, deceit or misrepresentation or commit any act that reflects adversely on their honesty, trustworthiness or professional competence.

Chapter: 3
Analysis of products and Services

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3.0 Analysis of products and Services offered by IDLC

IDLC has classified their products and services into four different categories

* .Corporate Division * SME Division * Consumer Division * Capital Market

3.1 Corporate Division

IDLC has extensive knowledge, expertise and experience to offer a range of financial solutions in response to the needs of a broad spectrum of clientele, comprising of local and multinational corporate houses in Bangladesh.

In Corporate Division IDLC deals with below these terms

* Lease Financing * Term Loan Financing * Working Capital Financing * Project Financing * Specialized Products

3.1.1 Lease Financing

* Asset backed financing against industrial machinery, commercial equipment’s, office equipment, generators, vehicles, vessels, engines, etc. * Financing may be extended up to 100% of the cost. * Usually for a tenure of 3 to 5 years * Repayment through monthly or quarterly rentals. * Rentals may be equal or structured (Step-up, step-down, bullet, etc) * Legal ownership remains in the name of IDLC throughout lease period. * Ownership is transferred to the client at the end of term

3.1.2 Sale & Lease Back

* Financing against any of the existing (already procured/in-use) industrial machinery, commercial equipment’s, office equipment’s, generators, vehicles, vessels, engines, etc. * The ownership of the asset comes to IDLC at of financing. * Financing may be extended up to 100% of the written down value (cost net of depreciation) depending on the condition of the machine. * Usually for a tenure of 3 to 5 years depending on original date of purchase and current condition of the asset. * Repayment through monthly or quarterly rentals * Rentals may be equal or structured (step-up, step-down, bullet, etc.) * Ownership is transferred to IDLC at the time of financing and remains in the name of IDLC throughout lease period * Ownership is re-transferred to the client at the end of term.

3.2 Term Loan Financing

3.2.1 Term Loan

* For meeting various regular capital/fixed expenditures like balancing of production line, modernization of manufacturing process, expansion of capacity and space, etc. * Usually for a tenure of 1 to 5 years. * Repayment through monthly or quarterly installments. * Installments may be equal or structured (step-up, step-down, bullet, etc.)

3.2.2 Bridge Financing

* For meeting the funding requirements of the borrower for any interim period. * Usually for shorter term. * Generally through bullet payments

3.3 Loan to Corporate Houses to Procure Commercial Space

* Financing to corporate clients for procuring office/commercial space. * Loan term may be up to 7 years. * Repayment can be made every quarter or month through equal or structured installments.

3.4 Long Term Finance for Real Estate Developers

* Financing to developers for meeting the capital expenditures/construction costs of any specific real estate project, both residential and commercial. * A debt-equity ratio is maintained * Disbursements are usually made in phases with progress of construction work

3.5 Working Capital Financing

* IDLC offering working capital financing to assist companies in carrying out day-to-day business operations * The financing modes include time loan, STL, work-order financing and many other forms of short-term loan facilities * IDLC offers its clients competitive interest rates at simple terms against these facilities

3.6 Project Financing

Project Financing - Fixed Cost * For setting up of a new unit as addition to the existing product line and capacity, a new concern of an existing group, a new Joint Venture project of an existing company, etc. * Required debt-equity ratio is maintained * Financial solution for the entire project may be provided through mix of different financial tools from wide Loan tenure varies based on product type. For fixed portion loan period may be up to 7 years range of services offered by IDLC. * Different repayment structure is available depending on financial product

3.7 Club Financing for Relatively Larger Projects

* For relatively larger amount of financing IDLC, given its long track record, position and reputation in the financial industry, arranges funds in partnership with other FIs/Banks for the client. * Type of facilities range from simple lease financing to a mix of lease and traditional banking products.

3.8 Preferred Equity Investments

* If clients raise funds through preferred share, IDLC corporate division makes financing by purchasing the shares * IDLC gets payments usually through redemption of the preferred shares over the tenure

3.9 Specialized Products

3.9.1 Refinancing of Existing Liabilities

* For matching the repayments with cash flows, allowing some more time for repayment, releasing working capital limits (which got exhausted due to meeting capital expenditures using short term credit lines) refinancing of existing good quality liabilities is made. * Terms and repayments are similar to those of term loans/ leases

3.9.2 Arranging Special Funds

* Financing is also arranged for large corporate houses through special funds from Local and International Development Agencies, Central Banks, Government agencies, etc. based on its availability and eligibility criterion of the project/financing. * IDLC uses its strategic alliances and local and international associations for arranging such funds * Generally preferred rates are offered

3.10 SME Division

IDLC offers financing facilities to small-scale enterprises for carrying out their trading, manufacturing or service business. Moreover, financing facilities for developing commercial real estate can also be availed by such enterprises.

* SME loan * ABASHAN loan

3.10.1 SME loan

* SME Loan is a facility designed to finance small-scale trading, manufacturing and service ventures to help them meet short-term cash flow needs and bridge the fund-flow gaps.

Eligibility

* The Business must be a going concern with minimum operational experience of 2 years * The Business must be a going concern with minimum operational experience of 2 years

Loan Limit

* Minimum Taka 5 laces to maximum Taka 1.5 core

Key Features

* IDLC offers loan without any collateral for up to Taka 15 Lacks * IDLC offers partial cash-secured loan up to Taka 70 Lacks * IDLC offers loan for Working Capital Finance and/or Lease finance for business * Borrowers having loan facilities with other financial institutions can also avail this facility * Convenient repayment options are offered, consisting of Equal monthly installments and/or customized repayment schedule * Borrowers enjoy a convenient repayment system through Equated Monthly Installments (EMI)

3.11 ABASHAN Loan

"ABASHAN" is a loan facility extended to small businesses that will construct or already have permanent structure for commercial rent (popularly known as mess rent), that are located in places surrounding the industrial areas and EPZs across the country.

Eligibility

* Business must be a going concern with at least 1 year in operation * Monthly income from rental and other sources must be minimum Taka 60,000 * Entrepreneurs with minimum 1 year experience in the same line of business
Loan Limit

* Minimum Taka 3 laces to maximum Taka 40 Lacks

Key Features

* IDLC offers loan without any collateral for up to Taka 15 Lacks * Borrowers having loan with other financial institutions can also avail Abashan Loan * Borrowers enjoy a convenient repayment system through Equated Monthly Installments (EMI)

3.12 Medium Enterprise Finance

SME-Mid segment offers mid and longer term financial solutions to a wide range of enterprises with the potential of emerging as a promising Corporate House in near future. Our portfolio comprises of various Limited, Partnership and Proprietorship concerns from a wide range of prospective business sectors.

3.13 Supplier Finance

Supplier Finance is a revolving financing facility offered against receivables created due to supply of goods or delivery of services on credit. This short-term facility enables the suppliers/service providers to realize the maximum portion of the payment soon after the delivery has been made to the buyer. In addition to financing, Supplier Finance also offers other value-added services such as:

* Monthly reporting * Sales Ledger Administration * Follow-up and physical collection of payments

3.13.1 Who can avail Supplier Finance?

* All industries providing services or delivering products to corporate entities such as institutional buyers/debtors can avail this facility. Certain criteria to be considered can be as follows. * The business must sell to a credit-worthy buyer/debtor on a regular basis * A business dealing with multiple institutional buyers/debtors will be preferred.

3.14 Services Offered

* Up-front Financing: Financing is made as soon as the Client/Supplier makes the supply and submits the received copy of the bill/ invoice to IDLC. * Follow-up and Physical Collection of Payment: IDLC will follow-up collection in a structured process and ensure physical collection of payment from Buyers located in different geographic locations. * Reporting: IDLC provides detailed reports of the Sales Ledger, helping decision making by the management of the Clients/Suppliers * Advisory Services: We assist the Clients/Suppliers in dealing with the Buyers by making recommendations about the credit rating of a Buyer and thus enabling the Client/Supplier to fix proper credit limit for each Buyer

3.15 Women Entrepreneur Loan

Women Entrepreneur Loan is a loan facility offered to small and medium business enterprises operated by women entrepreneurs. This Term Loan facility is offered for the purpose of meeting Working Capital requirements and/or purchasing fixed assets.

Eligibility

* Entrepreneurs having a minimum of 2 years’ experience in the same line of business * The business must be a going concern with minimum operational experience of 2 years
Loan Limit

* Taka 5 Lac to Taka 50 Lac

Interest Rate

* 10% - the lowest interest rate in the market

Key Features * IDLC offers loan without any collateral for up to Taka 15 Lacks * Convenient repayment options are offered, consisting of equal monthly installments and/or customized repayment schedule * Borrower having loan facilities with other financial institutions can also avail this facility

3.16 Commercial Vehicle Loan

IDLC offers Commercial Vehicle Loan as a lease facility for the purpose of purchasing new or reconditioned vehicles for your business use.

Eligibility * Entrepreneurs with minimum 3 years’ experience in the same line of business * Business must be a going concern with at least 3 years in operation

Loan Limit * From Taka 5 Lacks to Taka 1 Core

Key Features

* IDLC provides loan for both new and reconditioned vehicles * IDLC offers the facility for up to 100% of the purchase price of the vehicle * You can enjoy a maximum repayment term of 60 months * IDLC does not require any other collateral

3.17 Investment Process:
Your Portfolio Manager will adopt a clear and transparent investment process in terms of portfolio composition, stock selection, trade execution, monitoring and rebalancing.
The investment process has been carefully designed to ensure:

* Independent professional judgment and responsibility in each area of decision making * Elimination of all sorts of conflicts of interest * Fair dealing and objectivity in every transaction * compliance of law and other fiduciary duties

3.17.1 Investment Approach:

IDLC adopt a Top-down Approach to determine appropriate sector allocation and security selection to Portfolio. We use both fundamental and quantitative analysis for managing the investments.

3.17.2 Investment Style:

Your Portfolio Manager will focus on achieving long term returns at a reasonable risk through active management of your portfolio.

3.17.3 Where to Invest?

Your Portfolio Manager will invest only in capital market securities (both debt and equity) approved by the Securities and Exchange Commission and/or Bangladesh Bank. In order to protect the capital and increase the profit potential, funds may be invested, as a defense strategy, in quoted/unquoted debt securities, depository instruments, or fixed deposit accounts.
Your portfolio manager will abide by the following restrictions while making investment decisions:

* Funds will not be invested in securities having lock in period of more than 1 year * Funds will not be invested in private venture capital. * Funds amounting to more than 30% of your total assets will not be invested in unlisted equity/debt securities, including IPO and pre-IPO private placements. * Funds amounting to more than30% and 60% of total assets will not be allocated in a single security and single industry respectively.

3.18 Risk Aspect:

Prospective investors of MAXCAP account should appreciate that portfolio investment in capital market
Is subject to certain risk factors, as detailed below, which are not necessarily exhaustive or mutually
Exclusive:

* Portfolio return is significantly dependent on the macro economic situation and the capital market in particular. * Lack of liquidity and extreme price volatility may significantly impact portfolio performance. Due to lack of adequate number of securities, the portfolio may not be optimally diversified. Moreover, strong positive correlation among the equity securities also greatly limits the diversification benefits.

* Appropriate balancing between different asset classes may not be achieved due to absence of an active debt market.

* Despite careful selection of stocks, the companies may fail to provide expected dividend or make timely disbursements.

* The value of the portfolio assets may be affected by uncertainties such as political or social instability, adverse climatic condition, change in any law or regulations of the territory etc. Such risk exposure may limit your portfolio’s ability to achieve its stated return objective, and may result in substantial loss.

3.18.1 Who Will Bear the Risk?

As a client of MAXCAP account, you need to withstand the risk of volatile portfolio performance. However, your portfolio manager will be responsible for undertaking diligent risk control measures.

3.18.2 Risk Control Measures

To control volatile portfolio performance, your Portfolio Manager will judiciously apply various risk control measures. The primary paradigm of risk control has been described below:

* First, the Portfolio Manager will set appropriate limits on downside shortfall in securities, industry and portfolio levels * Second, the Portfolio Manager will try to minimize risk by selecting fundamental and potential securities and achieving adequate diversification * Finally and most importantly, the Portfolio Manager will continuously monitor the performance of your portfolio and the capital market conditions. Your portfolio will be actively balanced in line with the changed market scenario, if it is deemed prudent.

3.19 Fees and Charges:

* Documentation Fee: Taka 500 (one off) * Management Fee: 2.50% p.a. on the value of the securities, charged on a quarterly basis * Settlement Fee: 0.35% on the transaction value * Early Exit Fee (within 1st year of investment): 0.50% on the withdrawal/closing amount * Annual CDBL account renewal fees: BDT 500

3.20 Cap Investment

Cap Invest is an Investor's Discretionary Account that provides margin loan facilities to the investors:

3.20.1 Major Services

* Extending margin loan facilities to enable investors to earn enhanced return * Registering the securities, and collecting dividends and bonus shares * Subscribing to the rights issues * Completing dematerialization process * Keeping the securities in safe custody

3.20.2 Major Characteristics

* Cap Invest clients will have absolute discretionary power to make their own investment decisions. IDLC, the Portfolio Manager, will provide all support for efficient execution of the trades. * Clients will be allowed to invest only in the securities carefully selected and approved by the Portfolio Manager. * The Portfolio Manager will extend Margin Loan to the clients to facilitate enhancement of their return on investments through leveraging * All the securities purchased for the clients shall remain in lien in favor of the portfolio Manager. * Clients will have access to various research materials on market, industry and companies prepared by the independent research team of the Portfolio Manager. * Investment in "Cap Invest" will be considered allowable investment for obtaining tax rebate. Additionally, capital gains from investments are currently completely tax-exempt.

Key features:

* Minimum Investment Amount: Taka 1 Million * Margin Loan Amount: Maximum 0.75% * of client's equity, but not exceeding Taka 80 Million. However clients below 1 million investments will be allowed at 0.5% loan of their respective equity. * Margin Call: In the event of the client's equity falling below 50% of the total debt liability, the Portfolio Manager will call for additional margin deposit from the client to maintain the stipulated equity to debt ratio of the given loan ratio.

3.20.3 Fees and Charges

* Documentation Fee: Taka 500 (one off).

3.20.4 Management Fee

Client's Equity Level Management Fee
Taka 10 Million and above At 1.00% pa. Charged quarterly
Below Taka 10 Million at 1.50% pa. Charged quarterly

* Settlement Fee: 0.35% on Transaction Value * Out of pocket and Third party Charges (Central Depository, SMS charges): At actual basis.

3.21 Deposit Schemes:

* IDLC Finance Limited offers a wide range of Term Deposit Products to meet both your personal and professional needs. * Flexible Term Deposit Package

3.21.1 Short Term Deposit Product:

* 6 months Term Deposit * 7 months Term Deposit * 8 months Term Deposit * 9 months Term Deposit * 10 months Term Deposit * 11 months Term Deposit * 12 months Term Deposit

3.21.2 Long Term Deposit Product

* 13 months term deposit * 500 days term deposit * 24 months term deposit * 36 months term deposit * 48 months term deposit * 60 months term deposit * Double Money Deposit * Triple Money Deposit

IDLC Regular Term Deposits | Term | Interest Rate | | Below BDT 5.0 crore | BDT 5.0 crore & above | 6 to 12 months | 12.00% | 12.00% | 13 months | 12.40% | 2 Years | 12.50% | 3, 4 & 5 Years | 12.50% | IDLC 500 Days Term Deposit | Term | Interest Rate | | Below BDT 5.0 core | BDT 5.0 core & above | 500 Days | 12.25% | 12.25% | | | | IDLC Double Money Deposit | Term | | 5 Years 11 Months | | | | | | IDLC Triple Money Deposit | Term | | 9 years 10 months | | |

| | | IDLC Monthly Earner Deposit | Term | Individual | Institution | | Interest Amount per Month / Lac | Interest Amount per Month / Lac | 1 Year | BDT 1,000.00 | BDT 980.00 | 2 Years | BDT 1,000.00 | BDT 980.00 | 3, 4 & 5 Years | BDT 1,000.00 | BDT 980.00 | | | | | IDLC Quarterly Earner Deposit | Term | Individual | Institution | | Interest Amount per Quarter / Lac | Interest Amount per Quarter / Lac | 1 Year | BDT 3,000.00 | BDT 2,940.00 | 2 Years | BDT 3,000.00 | BDT 2,940.00 | 3, 4 & 5 Years | BDT 3,000.00 | BDT 2,940.00 | | | |

Key Features & Benefits: * Flexibility of tenors * Competitive interest rate/profits * No requirement of opening account fees * Quick loan facility against deposit * Countrywide branch network * Online account service * Online Fund transfer facility(BFTN) * Dedicated relationship manager to provide customer service * Auto renewal facility
3.22.3 General Terms and Conditions * Taka 50000 only for minimum period of 6 months
3.23.4 Mode of payment of deposit placement * A cheque of pay order slip in favor of IDLC finance limited
3.24.5 Renewal option * With principal amount only * With both principal and interest amount
IDLC Finance Limited reserves the right to change the Terms and Conditions at any point of time without any prior notice. Advance Income Tax (AIT) and Excise Duty will be applied on deposit accounts as per Government rules and regulations.

3.25 HOME LOAN
As one of the leading Home Loan providers in the country, we offer you the most convenient Home Loan facility to suit your needs. With so many attractive benefits, the home you always wanted is no longer a dream.
Key benefits: * IDLC considers all applications equally, irrespective of any profession * IDLC provides a dedicated and supportive service both before and after the disbursement * You have the option to choose either Fixed or Variable rate of interest * We sanction the loan within the shortest possible time, and also before starting construction of the building or purchase of the apartment * You can have early pre-payment option, either in part or full, with convenient conditions * You can avail Income Tax Rebate on annual interest payment on Home Loan up to Taka 20 Lacks * You can avail Municipality Holding Tax rebate * IDLC offers maximum loan facility to Non-resident Bangladeshi (NRB) * You can enjoy competitive interest rate and lower fees

3.25.1 Availability of Home Loans * 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
Eligibility
You are eligible for our Home Loan facility if you are:

* 25 years and above of age, but not more than 60 years, except professional * Earning on a regular basis from a sustainable source of employment or business

3.25.2 Factors affecting your Loan Amount
Home Loan amount depends on your repayment capability. A number of factors such as your monthly net disposable income, age, qualifications, value of the immovable property, number of family members and dependents, monthly expense, other fixed obligations, nature of job/business, savings habits etc. are taken into consideration.
3.25.3 Residential Purpose
70% of the purchase price, including registration cost, or 80% of the construction cost of residential house can be offered as Home Loan.

3.25.4 Commercial Purpose
50% of the purchase price, including registration cost, can be offered as Home Loan.

3.26 Loan Term
3.26.1 Residential Purpose

Category | Maximum Term | Maximum Age | Professional | 20 years | 65 years | Businessmen | 15 years | 60 years | Non Resident Bangladeshi (NRBs) | 10 years | 60 years | Service Holders | 20 years | 60 years | | |

3.26.2 Repayment Mode
The entire facility has to be repaid through Equal Monthly Installments
Security
Mortgage of the property itself or any other equivalent security, as acceptable to IDLC
Interest Rate and Fees
IDLC offers you a competitive interest rate and low fees. We set individual rates by taking into consideration a customer's financial status, amount borrowed and repayment terms. Please contact any of our branch offices for current rate and fees.
Property Insurance
Mortgaged asset should have fire or earth quake insurance by any IDLC nominated insurance company

3.27 IDLC Car Loan
Owning a car is no longer a luxury; rather, it has become a basic necessity. In this time of rush hour traffic and round-the-clock routine, having your own car ensures personal control as well as mobility. In one word, it improves your quality of life. IDLC Car Loan facility is here to make it happen for you.
Scope
IDLC will help you to purchase brand new and reconditioned vehicles

Loan Tenure
Maximum 5 years
Repayment
Equal Monthly payment system
Benefits
* Faster service * Maximum possible loan amount * Competitive interest rates * Special discount on vehicle price offered by renowned dealers, under special arrangement with IDLC * partial or full prepayment options * No Personal Guarantee required * No hidden charges or fees
Eligibility to avail this facility * Service holders * Professional * Self –employed * Business person * NRB service-holders
Age of the Borrower(s) * Between 22 years to 60 years (Loan must be repaid on or before the age of 60)
Minimum Monthly Income

* Service-holders/Professionals: Taka 40,000 (including income of co-borrower, in case of joint application) * Landlord taka-50000 * Business Persons: * Small and medium Segment Taka 50000 * Corporate segment Taka 750000

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)
Car Registration * Joint registration of the vehicle under the names of both the borrowers and IDLC
3.28 Personal loan
IDLC understands your all out efforts to improve the quality of life, but necessities no longer wait for your savings to accumulate. Sometimes, it gets harder to meet ever changing needs. IDLC Finance Limited, the largest financial institution of the country, can help you achieve your aspirations with a Personal Loan that is suitable for you. IDLC Personal Loan - financing for all your need!
3.29 Why IDLC? * Faster loan approval * Competitive interest rate * Lowest possible charges * Early settlement option * Dedicated and supportive services
3.30 Purpose
IDLC has designed their product to support your various need including: * Marriage * Education * Meeting personal financial liabilities * Domestic or foreign travel * Medical treatment * Others
Loan Amount * IDLC offers a facility ranging from Taka 50000 to Taka 10 Lacs to suit your requirements
Interest Rates and Fees * You can enjoy a competitive interest rate against our Personal Loan. Individual rates are set based on the customer’s financial status and facility amount.

3.31 Registrar Loan
Registrar Loan", the first loan of its kind in Bangladesh, is a secured loan facility for property buyers and possession-holders for securing ownership of apartment, commercial space and land.

Offered against the mortgage of real estate ownership, this facility will help you manage the registration cost of the property, whether you are purchasing the real estate property, or already have the property under your possession but have not registered it yet.
Eligibility
You are eligible for your RegistraLoan facility if: * you are a service-holder, professional, or self-employed person (including business person) * You have already registered your property using own financing and are now availing this facility for reimbursing the registration cost

Key Features * Loan limit up to Taka 20 Lacks * Comfortable loan term of maximum of 10 years * Competitive interest rates and processing fees

Chapter: 4
Analysis Part

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4.0 Analysis

4.1 Employees Satisfaction & Dissatisfaction
IDLC has recognized has as a rapidly changing, knowledge-based business, communication is a critical ingredient for success. IDLC emphasizes on both formal and informal communication. The managers have a key role to play in communication.
Managers are accessible, encourage collaboration and the development of ideas that contribute to business performance and continuous improvement. In addition to face-to face meeting, IDLC encourage the use of “Live internet Meetings” which allows business management to talk frequently to employees, without the need to bring them together in one place.
Although IDLC has lots of strategies for their employees but the employees of IDLC has shown dissatisfaction from their position. This is the real scenario of IDLC that is not publicly published. All the time IDLC is telling that they always try to keep their employees satisfied but in real operation they are not doing this practice.
FOR EXAMPLE, as I did my internship from IDLC so I got lots of opportunity to talk with the employees of IDLC. I took an interview from deposit department. They told that right now IDLC holds huge fund so now they don’t need to think about it. So IDLC is taking policy to reduce the interest rate for deposit. As a result it is becoming very tough for the employees to bring deposit from the market. But IDLC is continuously setting target to fulfill it. When the employees become unable to reach the target sometimes they become very disappointed as well as they are losing their interest to work for IDLC.

4.2 INTERNSHIP EXPERIENCE

I have completed my internship Program from IDLC Finance Limited at Uttara branch. This internship program has given me chance to learn about lots of practical knowledge about the activities of non-banking financial institutions. Before my internship program I had just theoretical knowledge about non-banking finance company.

From the beginning of my internship program I was so determined that I could make my internship program successful by learning various new terms. Now I realize that I have learned something that will be very beneficial in my future life. During my internship I always try to observe the activities of each department. I have got little bit knowledge how a big organization is managing their various tasks.
IDLC INVESTMENTS Limited is a subsidiary of IDLC Finance Limited. Right now IDLC INVESTMENTSs Limited is the most renowned investment bank in Bangladesh. Although I passed my internship program at SME operations where I did loan file processing. Now I am confident about their whole loan processing system. I have learned that how to give a loan file in a final form. During this job I have learned to use their software system.

Another important learning from my internship program is that how can I implement my theoretical knowledge into professional life. I have learned professional attitude from IDLC.
As an intern I always tried to give my best effort for them and I hope so they are so satisfied with my dedication level.

4.3 MY JOB DESCRIPTION

My working hours normally started at 10 am in the morning as other office starts and ends at 6 pm. As intern my daily jobs were-

* Collect and prepare documentation as per sanction terms/PPG, maintain database for collect loan application documents. * A daily duty includes- entry loan data to database, update database tables, and updates documents status on satellite gateway system. * Prepares incomplete documentation list and co-ordinate with CROs for resolving deficiencies. * Query handling of business divisions; generate report from database and manually as request. * Monitoring of SME loan documentation deficiency on daily basis. * Update Sanction letter, booklet for each and every months. * Update cheque status in FLEXCUBE software. * Issue cheque on urgent basis to serve customer. * Prepare BEFTN request and memo to e-mail concern department.

4.4 Comparative analysis Between IDLC & Other companies in terms of Asset & Liabilities Creation

Rate of default loan at non-bank financial institution
Default loans at non-banking financial institutions rose by 0.42 percent in the first quarter this year from the same time last year.
However the amount of their bad loans is much lower than that of the banks.
The financial institutions’ default loans were 5.87 percent of the total outstanding loans or TK 1527 core on March31, according to central bank statistics.
However, at the same time, the banks’ bad loans stood at 11.9 percent or TK 51,019 core; the amount would stand at more than TK 70, 0000core if the write-off loans are added.
Among the 30 financial institutions, the default loans are above 10 percent at eight, according to Bangladesh Bank Statistics. However, the amount is within 3 percent at 19 institutions where the default rate for IDLC is 1.86 which indicates the better performance of this Organization.

4.5 Funding Mix strategies of IDLC finance limited
Every financial institution operates their business by collection fund from various sources. IDLC is not exceptional of that but in case of raising fund IDLC follow some strategies that help to operate their business successfully and efficiently. By analyzing of funding mix of IDLC it has found that when they collect fund in 2012 December they collect from term deposit 83%, Bank borrowing 5%, Bangladesh Bank Refinance 10% and Bond & others only 2%.
From this information it is shown that only 5% fund they collect from Bank Borrowing which is very fruitful decision for IDLC.

Fig: Funding Mix

4.6 SWOT Analysis
4.6.1 Strengths
Highly qualified human resource
IDLC Finance Ltd. is currently operating its entire business operations with the help of some qualified human resource that can drive and motivate themselves in any pressure situation. The working environment is a positive side to explore anybody to go forward. IDLC Finance Ltd. In this side is a unique organization.
Linkages
It has a high linkage with various business organizations for housing finance companies. Specific marketing personnel are assigned to follow up each developer and part of their responsibility is to keep developers aware of the status of their concerned clients. For backward linkage IDLC collects deposits from individual depositors. The company has more than 580 core deposit base.
Smoothness of operations
At IDLC decision making is free flowing and transparent. Every appraiser is given ample opportunity to exercise his/her creativity in accommodating a customer. Approvers are open for any discussion and sanction is largely based upon recommendation of the appraisers. The open and free flow of communication ensures clarification of any queries in no time from any level of hierarchy. Reasonable suggestions are not only welcome but are highly appreciated. Effective suggestions by the employees are immediately set for action. This flexibility has helped IDLC a lot in shaping up its operations in to a level of efficiency and to be excellent performer in case of loan recovery.
Management Support
IDLC management has extended wholehearted supported in enhancing the operations of house loans which has consequently ensured recruitment of competent workforce and retaining them-which is a key success factor in the industry.
Diverse product range
IDLC benefits from the diverse range of product it offers. Apart from construction and flat purchase loan, IDLC also offers loans for purchase of commercial premises. Besides it offers loans to the Real Estate Developers in the form of project finance.
Low cost of Fund
As a financial company with outstanding performance record and sound share holding structure, IDLC has access to very low cost source of fund both at home and abroad. Future Geographical Coverage
IDLC will soon open outlets for its multipurpose operations in various cities. These outlets cater to the home loan needs of those particular areas. As such IDLC can be the first private sector housing finance companies to diversify geographically.
4.6.2 Weakness
High interest rate
Some of the specialized housing finance companies are combating competition through price war Whereas IDLC is still taking a laid back approach to competition. As such competition is offering lower interest rates to attract customers.
Narrow Customer Focus
IDLC approves loan based on the client’s repayment ability and considering income. Lack of proper and authentic income documents hinder IDLC for giving loan for the self-employed group.
Lack of Lobbying Power
The organization also has lack of lobbying with regulatory power authorities like government to get favorable policy decision.
No Grace Period
One of the major drawbacks of IDLC systems compared to its most prominent competitors Islamic Bank Bangladesh Ltd.(IBBL) and also HBFC is that installment of these organizations starts after applicants has completed construction work or has got the possession of the property to be financed. Whereas IDLC installment starts immediately after the client has started taking disbursement. At this time, very few have enough disposable income to pay installment.
Rigidity in terms of Security
IDLC still takes registered mortgage of property in case of own constructions. Where as other competitors are taking equitable mortgage of property.

4.6.3 Opportunity
Reduction in interest rate
Gradual interest rate has made housing loans more affordable to common people. The decreasing trend in interest rate has made the choice of installment payment against rental expense more feasible.
Growth Of real estate industry
The recent development and growth of the real estate industry has created opportunities for new business for IDLC. Influx of new projects both in Dhaka city and in its suburb areas and also in other major cities has contributed to this growth.
Lack of Investment alternatives
Government has recently abolished lot of savings schemes and lowered interest rates on saving instruments. The capital market of our country is also not very active. Thus consumers and others interested parties are now interested in investing in housing finance projects. The overall reduction of interest rate in the financial sectors made housing loan more flexible.
Shift of focus of developers
In the earlier stage the real estate companies targeted the higher income groups. Most of the housing finance projects were centered in the posh areas of Dhaka city. Recently the developers also focus on the middle –income group and make more affordable and low cost housing for them. As middle income group is the majority in urban population and there is enormous demand of housing loan for this segment, this shift of focus opens new opportunities of business.
Development of land projects and construction
Both government and the private companies have taken actions to develop different land projects in their major cities and suburb areas. The growth of individual construction of houses in the different belt of Dhaka and Chittagong city has also been observed in recent time. This gives IDLC ample financing scope for these projects.

4.6.4 Threats
New entrants
Deposit liability operations is becoming much more challenging day by day since various banking and non-banking financial institutes are planning to operate deposit operations. It has low financing cost as well as a good source of revenues which can play a byproduct especially for a leasing company. On the other hand housing fiancé industry is considered as secured field to invest. Most of the banks and other financial institutions see this sector as lucrative industry. With the increase in duel income cellular families, need for credit offers for this purpose has increased dramatically. As a result not only the existing competitors are being more active players in the market, new competitors are also entering market. Some banks are also coming up with more accessible housing loans. The new entry of the competitors will deduct the market share of IDLC.
Absence of proper legal framework
Deposit operations do not have any strict legal backing especially in Bangladesh. Nevertheless all the companies are operating such activities with strict systems for their betterment. Besides now a days Bangladesh Bank also looking after such operations as well as promulgating money laundering Act to prevent frauds. On the other the legal framework of Bangladesh is relatively weak in the field of credit industry. Lack of effective foreclosure laws and manual land recording system creates possibility of forgery and disputes. This may hinder the loan recovery from the defaulters.
Uneven competition
There is an uneven competition in the industry. Government provides subsidized fund to HBFC, which undermines the competitiveness of the market. Besides cost of funds of the scheduled bank is always a discouraging factor for NBFI’s like IDLC.
High cost of property
The middle-income group of our country cannot afford the high cost of land and apartments most of the time. The construction cost of houses is also high. This high cost discourages the limited income group from purchasing land or apartments. On the other hand deposit liability operations can easily finance through deposit mobilization and refinance it through middle income earner group.

Relatively low employment base
IDLC primarily focus on the employed group for providing housing loans. The low employment base of the country will hinder the growth of customer base of IDLC.
Strategies to capitalize opportunities: * Since the deposit operations taking as a thirst sector in Bangladesh, all the market related strategies is being taken to mobilize the source of fund to invest new areas. * A real time management is taking into effect to accelerate the growth of the deposit mobilization. * As real estate sector is having robust growth IDLC maintains focus relationship with existing development and also explores for new developers in order to increase scope for financing in new projects carried by them. * As real estate market is expanding in the suburbs and other cities IDLC conducts outreach program in Mymensingh, Sylhet, Savar and Comilla to consider the feasibility for opening of new branches.

Strategies to minimize threats * As it is a very price competitive market IDLC attempts to provide quick, fast and quality customer service. The company finds out the unique selling point of its products to counter competition. * The company maintains tight credit policy to achieve high recovery rate. * IDLC always explores for low cost funding in order to counter the changing interest rate and maintains a competitive price for their products. The company also seeks opportunity to get offshore funding from international development organizations. * IDLC lobbies with the Government in order to get favorable policies and subsidized fund. * IDLC encourages and educates developers to make more low cost apartments or flats and expand projects in the suburb.

Chapter: 5
Analysis of financial performance

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5.0 Analysis of financial performance
5.1 Ratio analysis
The analyses of the financial performance of the four selected Bangladeshi leasing company of last four years are presented below with their average performance and the ratio.
5.1.1 Debt equity ratio
This ratio is calculated to measure the relative proportions of outsiders’ funds and shareholders’ funds invested in the company. | | |
Table; – Debt equity ratio Year | IDLC | PRIME | LANKBANGLA | UNITED | 2007 | 9.54% | 4.97% | 8.68% | 6.6% | 2008 | 8.32% | 3.94% | 7.79% | 6.6% | 2009 | 8.4% | 4.05% | 5.4% | 5.9% | 2010 | 6.30% | 2.13% | 3.03% | 4.7% |
Debt equity ratio shows a favorable or unfavorable financial position of the concern depends on the industry and the pattern of earning. A low ratio is generally viewed as favorable from long term creditor’s point of view, because a large margin of protection provides safety for the creditors.
Chart: – Debt equity ratio in the last 4 years
From the above mentioned figure it is found that IDLC financial company highest with 9.54%, 8.32% and 8.4 % in 2007, 2008 and 2009 respectively. LANKABANGLA and UNITED also performed above the average where PFI performed always below average. For this segment of analysis, higher score provided to the company with lower percentage in every year.
The sore of companies under this ratio are as follows - Company | 2007 | 2008 | 2009 | 2010 | Total | IDLC | 1 | 2 | 3 | 4 | 10 | PRIME | 4 | 8 | 12 | 16 | 40 | LANKABANGLA | 2 | 4 | 9 | 12 | 27 | UNITED | 3 | 6 | 6 | 8 | 23 |

Table- Sore of company’s debt equity ratio
5.1.2 Return on equity ratio
This ratio is a measure of the percentage of net profit to equity shareholders fund.
Table- Return on equity ratio Year | IDLC | PRIME | LANKABANGLA | United | 2007 | 27.59% | 34.76% | 41.23% | 14.6% | 2008 | 28.43% | 36.75% | 40.94% | 14.0% | 2009 | 41.05% | 49.72% | 35.24% | 13.5% | 2010 | 43.64% | 64.97% | 35.49% | 26.2% |

It measures a firm’s efficiency at generating profits from every unit of shareholders’ equity. ROE shows how well a company uses investment funds to generate earnings growth. Higher percentage of ROE refers higher efficiency in using equity fund. The ROE of the company are presented in the following chart. | | |
Chart: – Return on equity ratio of the last 4 years
The information shows that LANKABANGLA ROE was much higher in the last two years with 41.23% and 40.94% respectively but it had been decreased in 2009 and 2010 years. PFI was in top with 49.72%% and 64.97%% in 2009and 2010 respectively but it was below the average in 2007, 2008 and 2009 IDLC and UNITED. For this ratio higher score will be provided to the organization with higher percentage as higher percentage means higher efficiency of the organization.
The score sheet of companies are provided below
Table – sore of companies return on equity ratio Company | 2007 | 2008 | 2009 | 2010 | Total | IDLC | 2 | 4 | 9 | 12 | 27 | PRIME | 3 | 6 | 12 | 16 | 37 | LANKABANGLA | 4 | 8 | 6 | 8 | 26 | UNITED | 1 | 2 | 3 | 4 | 10 |

5.1.3 Return on asset ratio
This ratio is calculated to measure the profit after tax against the amount invested in total assets to ascertain whether assets are being utilized properly or not. The higher the percentage of return, higher the proper utilization of assets.
Table- Return on asset ratio year | IDLC | PRIME | LANKABANGLA | UNITED | 2007 | 2.37% | 4.92% | 4.89% | 1.824% | 2008 | 2.50% | 5.71% | 4.66% | 1.748% | 2009 | 4.11% | 8.89% | 5.54% | 1.858% | 2010 | 5.35% | 16.85% | 8.80% | 4.08% | | | |
Chart: – Return on asset ratio of the last 4 years
Form the above chart it can be said that UNITED and IDLC lost its efficiency in the recent years. In 2008, 2009 and 2010 PFI was in the highest position with 5.71%, 8.89%, 16.85respectively where in 2008, 2009 and 2010 LANKABANGLA also hold the highest position with 4.66%, 5.54% and 8.80% respectively. For this ratio higher score will be provided to the organization with higher performance as higher percentage means higher efficiency of the organization in using assets. The score sheet of companies are provided below –
Table – sore of companies return on asset ratio Year | 2007 | 2008 | 2009 | 2010 | Total | IDLC | 2 | 4 | 6 | 8 | 20 | PRIME | 4 | 8 | 12 | 16 | 40 | LANKABANGLA | 3 | 6 | 9 | 12 | 30 | UNITED | 1 | 2 | 3 | 4 | 10 |

5.1.4 Earnings per share
This helps in determining the market price of equity shares of the company and in estimating the company’s capacity to pay dividend to its equity shareholders. The performance and prospects of the company are affected by earning per share. If earning per share increases, there is a possibility that the company may pay more dividend or issue bonus share.

Table- earning per share Year | IDLC | PRIME | LANKABANGLA | UNITED | 2007 | 50.50 | 5.99 | 5.47 | 27.22 | 2008 | 67.73 | 6.21 | 9.81 | 28.95 | 2009 | 237 | 10.60 | 14 | 30.72 | 2010 | 221.18 | 19.13 | 32 | 71.64 |
Chart- Earning per share of the last 4 years
The chart shows that EPS of IDLC highest during the years in 2008, 2009 and 2010 with TK 67.34, TK 136.98, TK 221.18 respectively where in 2010 it was leaded by LANKABANGLA with TK 32 and the EPS of UNITED had been increase in last three years. For this ratio higher score will be provided to the organization with higher percentage as higher percentage means higher efficiency of the organization. The score sheet of companies are provided below-
Table: - sore of companies earning per share Company | 2007 | 2008 | 2009 | 2010 | Total | IDLC | 4 | 8 | 12 | 16 | 40 | PRIME | 2 | 2 | 3 | 4 | 11 | LANKABANGLA | 1 | 4 | 6 | 8 | 19 | UNITED | 3 | 6 | 9 | 12 | 30 |

5.2 Total scoring and ranking
According to the analysis the total score of the each company and ranking the company according to the score are provided in the following chart: – Company | DER | ROE | ROT | EPS | Total | Ranking | IDLC | 10 | 27 | 20 | 40 | 97 | 3rd | PRIME | 40 | 37 | 40 | 11 | 128 | 1st | LANKABANGLA | 27 | 26 | 30 | 30 | 113 | 2nd | UNITED | 23 | 10 | 10 | 19 | 62 | 4th |
According to the analysis it is found that PRIME company has achieved the highest score and the best ranking followed by LANKABANGLA, IDLC and UNITED respectively.
5.3 Growth rate analysis
Growth rate analysis is the most important tool of business expansion comparison. In this study growth rate was calculated on the basis of base year 2006 Score and position are determined under the following percentage.
5.3.1 Growth rate of paid up capital
Table: – Growth rate of paid up capital Year | Idlc | Prime | Lankabangla | United | 2007 | 133.33% | 110.% | 100% | 100% | 2008 | 166.67% | 154% | 110% | 110% | 2009 | 200% | 215.59% | 126.5% | 125.71% | 2010 | 400% | 301.84% | 151.8% | 251.42% | | | | | | | | |
Chart: – Growth rate of paid up capital
The highest growth rate of paid up capital was IDLC Company with 133.33%, 166.67%, 200% and 400% during 2007, 2008, 2009 and 2010 respectively and also PFI was highest rate with 215.59%and 301.84% during 2009 and 2010. Growth rate of paid-up capital of LANKABANGLA and UNITED was average rate during 2007 and 2008 but UNITED growth rate of paid up capital was increased in 2009 and 2010. Higher score provided to the company with higher percentage in every year. Higher score are distributed for higher rate as following:-

Table: – Score of company’s growth rate of paid up capital

Company | 2007 | 2008 | 2009 | 2010 | Total | IDLC | 4 | 8 | 6 | 16 | 34 | PRIME | 3 | 6 | 3 | 12 | 24 | LANKABANGLA | 1.5 | 3 | 12 | 4 | 20.5 | UNITED | 1.5 | 3 | 9 | 8 | 21.5 |

Lankabangla and United are in the joint position in 2007. That why the score of 2nd and 3rd position are equally divided among them by adding the two score.

5.3.2 Growth rate of total investment
Table: – Growth rate of total investment Year | Idlc | Prime | Lankabangla | United | 2007 | 184% | 120% | 21.86% | 117.93% | 2008 | 265.52% | 146.64% | 35.39% | 122.17% | 2009 | 483.17% | 267% | 22.38% | 123.50% | 2010 | 435.85% | 334.5% | 36.80% | 260.43% |
Chart: – Growth rate of total investment
From the above figure shows that Growth Rate of total Investment of IDLC Company was the highest with 184%, 265.52%, 483.17% and 435.85% in 2007, 2008, 2009 and 2010. Rate of PFI Company was over in last four years but rate of UNITED was higher than the LANKABANGLA in last four years and rate of LANKABANGLA also was below in last four years. Score sheet of companies are provided below:-

Table: – score of company’s growth rate of total investment Company | 2007 | 2008 | 2009 | 2010 | Total | IDLC | 4 | 8 | 12 | 16 | 40 | PRIME | 3 | 6 | 9 | 12 | 30 | LANKABANGLA | 1 | 2 | 3 | 4 | 10 | UNITED | 2 | 4 | 6 | 8 | 20 |

5.3.3 Growth rate of total deposit
Table: - Growth rate of total deposit Year | IDLC | Prime | Lankabangla | United | 2007 | 144.24% | 143.50% | 221.21% | 214.97% | 2008 | 260.8% | 147.08% | 321.52% | 267.98% | 2009 | 307.77% | 312.87% | 239.83% | 402% | 2010 | 386.24% | 253.97% | 259.10% | 415% |
Chart: – Growth rate of total deposit
From the above chart, it can be described that growth rate of Total Deposits of LANKABANGLA was the highest with 221.21% and 321.52% in 2007 and 2008 respectively but the rate was below in 2009 and 2010 than the other companies. Rate of UNITED was above with 214.97%, 267.98%, 402% and 415% in last four years but the rate of IDLC and PFI was below in 2007 and 2008. In 2009 and 2010 the rate of IDLC was over with 307.77% and 386.245 in 2009 and 2010. Score sheet of companies are provided below:-
Table:-score of companies Growth rate of total deposit Company | 2007 | 2008 | 2009 | 2010 | Total | IDLC | 2 | 4 | 6 | 12 | 24 | PRIME | 1 | 2 | 9 | 4 | 16 | LANKABANGLA | 4 | 8 | 3 | 8 | 23 | UNITED | 3 | 6 | 12 | 16 | 37 |

5.3.4 Growth rate of total equity
Table: – Growth rate of total equity Year | Idlc | Prime | Lankabangla | United | 2007 | 131% | 127.53% | 119.58% | 110.73% | 2008 | 149.19% | 184.96% | 147.65% | 122.61% | 2009 | 251.48% | 366.67% | 219.56% | 135% | 2010 | 387.78% | 700.32% | 301.75% | 173.36% | | | |
Chart: – Growth rate of total equity
From the above chart shows that Growth rate of total equity of PFI Company was the highest with 184.96%,366.67%, and 700.32% in 2008, 2009 and 2010 respectively. Growth rate of total equity of IDLC and LANKABANGLA was above in 2009 and 2010 with 251.48%, 387.78% and 219.56%, 301.75%. On the other, rate of UNITED was below the average rate in last four years. Score sheet of companies are provided below:-
Table: – score of companies Growth rate of total equity Company | 2007 | 2008 | 2009 | 2010 | Total | IDLC | 4 | 6 | 9 | 12 | 31 | PRIME | 3 | 8 | 12 | 16 | 39 | LANKABANGLA | 2 | 4 | 6 | 8 | 20 | UNITED | 1 | 2 | 3 | 4 | 10 |
5.3.5 Growth rate of Fixed Asset
Table: – Growth rate of Fixed asset Year | Idlc | Prime | Lankabangla | United | 2007 | 104.16% | 77.32% | 83.75% | 101.91% | 2008 | 98.99% | 79.38% | 92.61% | 183.78% | 2009 | 132.46% | 179.68% | 80.75% | 184.23% | 2010 | 192.16% | 180.79% | 100.2% | 215.07% | | | |
Chart: – Growth rate of fixed asset
From the above mentioned figure it is found that Growth Rate of Fixed Assets of UNITED was the highest with 101.91%.183.78%,184.23% and 215.07%% in 2007 ,2008, 2009 and 2010 respectively . Rate of PFI was below the average rate in 2007 and 2008 but increase in 2009 and 2010.Rate of LANKABANGLA also was below in last four years. Rate of IDLC was above the average in 2007, 2009 and 2010 but below in 2008. Score sheet of companies are provided below:-
Table: – score of company’s growth rate of Fixed asset Company | 2007 | 2008 | 2009 | 2010 | Total | IDLC | 4 | 6 | 6 | 12 | 28 | PRIME | 1 | 2 | 9 | 8 | 20 | LANKABANGLA | 2 | 4 | 3 | 4 | 13 | UNITED | 3 | 8 | 12 | 16 | 39 |
5.4 Total scoring and ranking
According to the analysis the total score of the each company and ranking of companies according to the score are provided in the following chart:- IDLC | 34 | 40 | 24 | 31 | 28 | 157 | 1st | PRIME | 24 | 30 | 16 | 39 | 20 | 129 | 2nd | LANKA BANGLA | 20.5 | 10 | 23 | 20 | 13 | 86.5 | 4th | UNITED | 21.5 | 20 | 37 | 10 | 39 | 127.5 | 3rd |
According to the analysis it is found that IDLC company has achieved the highest score and the best ranking followed by PRIME, UNITED, LANKABANGLA respectively.

Chapter: 6
Comparative analysis

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6.0 Comparative analysis of others non-banking financial institutions

6.1 Delta Brac Housing Finance Corporation Ltd. (DBH)
Delta Brac Housing Finance Corporation Ltd. (DBH) is the pioneer, largest and specialist in Housing Finance institution in the private sector of the country. After commencing operation in the early 1997, the company has registered commendable growth in creating home ownership among more than 23,000 families in Dhaka and other major cities of the country. At the same time, the company has been playing an active role in promoting the real estate sector to the large cross sections of prospective clients who had but yet unfulfilled dream of owning a sweet home.
Among all Banks and Financial Institutions of Bangladesh only DBH has been rated the highest 'AAA' credit rating. The level of credit rating provides a very important indication of the financial safety, security and strength of the concerned Bank or Financial Institution and is particularly relevant to its depositors and other investors such as shareholders and lenders.

6.1.1 Home Loan
Apartment Loan
Everyone dreams for owning a home and having DBH beside you it is no more a dream but the reality of today. Be it new or old, you decide to buy an apartment in Dhaka or Chittagong or Sylhet, DBH Apartment Loan will support you in meeting your needs. With DBH Apartment Loan be a proud owner of an apartment.
Home Construction Loan
Everyone dreams for owning a home and having DBH beside you it is no more a dream but the reality of today. Be it new or old, you decide to buy an apartment in Dhaka or Chittagong or Sylhet, DBH Apartment Loan will support you in meeting your needs. With DBH Apartment Loan be a proud owner of an apartment.
Housing Plot Loan
Everyone dreams for owning a home and having DBH beside you it is no more a dream but the reality of today. Be it new or old, you decide to buy an apartment in Dhaka or Chittagong or Sylhet, DBH Apartment Loan will support you in meeting your needs. With DBH Apartment Loan be a proud owner of an apartment.
Home Extension loan
Time travels and the need of your family grows. There rises a need for extension of your house, which provides you with an extra space for your family. DBH Home Extension Loan is designed to meet this requirement. Such an extension could be an additional room on the same floor, an additional toilet, an extra room on the terrace, or even enclosing an open balcony.
Home Improvement Loan
Everyone dreams for owning a home and having DBH beside you it is no more a dream but the reality of today. Be it new or old, you decide to buy an apartment in Dhaka or Chittagong or Sylhet, DBH Apartment Loan will support you in meeting your needs. With DBH Apartment Loan be a proud owner of an apartment.

Home Owner's Loan
This is an "Any Purpose Consumer Loan" option for you, which is secured by Registered Mortgage of the owner-occupied Property. This product would give you an unique opportunity to encash your valuable investment in a self-dwelling property unit without having to dispose it off.

6.1.2 Deposits
Annual Income Deposit
Deposit in “DBH Annual Income Deposit scheme” could be a good choice for you to maintain a regular flow of yearly income while keeping your saving intact & safe.

Annual Plus Income DepositNow with a little more waiting you can earn even more. In a deposit for 13 months only you can earn attractive return on your savings. Our “Annual Plus Income Deposit” brings you that opportunity to earn that extra profit. |

Monthly Income Deposit"DBH Monthly Income Deposit" is an ideal product for anyone who wants to create a Safe & Stable source of monthly income at competitive Interest Rate. |

Quarterly Income Deposit | | Everyone looks for some additional source of income to support various needs that may come up from time to time. DBH presents “Quarterly Income Deposit”, which can be your source of definite quarterly income. With this deposit you can earn profit every three months. This product is specially designed for pension holder & housewife but can be a good source of additional income for anyone. | Cumulative DepositDeposit in DBH Cumulative Deposit fulfills your wishes to meet substantial future requirements by giving a higher average rate of return at maturity. So, if you want to keep your deposit growing in a safe, secured and convenient way, DBH Cumulative Deposit could be the best place for you. | Flexible Fixed Deposit | | You will get instant quick loan facility up to 95 % of your Deposit with a lower rate. This is an ideal product for short term savers, jobholder, businessman etc. | Profit First Deposit | | A magic deposit that gives you instant profit. Now you don’t have to wait till maturity. You can celebrate your present keeping your future safe and ensured. You can get instant return with even the minimum amount of Tk. 50,000. Profit first deposit gives you instant profit. You don’t have to wait for it to mature. | | Easy Way Deposit | | Easy Way gives you a hassle free chance to accumulate your small savings into a large pool for an attractive return. The choice of how much you want to save and for how long is entirely yours. It is truly easy! |

Children's Deposit | | DBH has introduced two types of variable rate children deposits – Monthly savings and fixed savings. It caters to the specific concerns of parents and provides them for an invaluable opportunity of securing their child's future. Parents want the best possible future for their children, but it comes at a cost, DBH Children's Deposit gives you the opportunity to save for your child's future |

Easy Home Deposit Everyone has a dream of his own home. DBH commitment is to make your dream come into reality. You can save a little every month and at maturity you can get a housing loan of three times or more of your savings with a discounted ROI. | Children's Deposit | | DBH has introduced two types of variable rate children deposits – Monthly savings and fixed savings. It caters to the specific concerns of parents and provides them for an invaluable opportunity of securing their child's future. Parents want the best possible future for their children, but it comes at a cost, DBH Children's Deposit gives you the opportunity to save for your child's future. | |
6.2 LankaBangla Finance Limited (LBFL)
LankaBangla Finance Limited (LBFL) a joint venture financial institution established with multinational collaboration is in operation since 1997 having license from Bangladesh Bank under Financial Institutions Act, 1993. With institutional shareholding structure, educated & motivated human resources, friendly working environment & dynamic corporate culture has enabled LBFL to be a diversified financial services providing institution of the country. Technical support provided by Sympathy Bank Limited, Sri Lanka has been working as a catalyst to emerge LBFL as most innovative financial solution provider strictly in compliance with the rules & regulations of Bangladesh Bank.
Products and Services * Corporate financial Services * Retail financial Services * SME services * Deposit Schemes
6.2.1 Corporate Financial Services
Lease Finance
We provide lease Finance facilities to all market segment of customers, individuals, Small & Medium Enterprises, Commercial Houses, Large Corporate organizations.
All types of items are leased like automobile, personal computer, medical Laboratory Equipment, Industrial Machinery, Trucks, Buses, Trawlers, Marine vessels, Construction Equipment, Generator, Transformer, Boiler, Agricultural Equipment etc.
We also cater to the needs of Balancing, Modernization and Replacement requirements of the entrepreneurs for their existing projects. The lease portfolio of LankaBangla is well diversified among various market segments.
Term Finance
We provide Term Loan to medium and large corporate entities to meet their short medium & long term fund requirements for development of production facilities on easy and flexible terms. 6.2.2 FactoringAs your business grows, so does your need for working capital. Healthy companies need cash * To finance Expansion * To fund stocks * To meet overheads/ salariesWe at LankaBangla specialize in providing you with instant cash through the purchase of accounts receivable or debts outstanding which is a financing technique known as Factoring.Factoring moves your cash flow forward creating immediate cash to improve your financial position and increase your purchasing power. Thereby, it provides you with the economic strength to expand production, increase sales and profits.6.2.3 Work Order FinancingWe provide Loans to corporate entities to finance work orders that they receive from private reputed companies, Government, multi-national companies and defense authorities. In such cases we require that the payment to be received from the contract be fully assigned in favor of LankaBangla which will then facilitate direct payment of the receivables to us when the work order is completed. Such financing will normally be for periods ranging from 6 months up to 1 year, covering the provide requirement to complete the work order.6.2.4 Retail Financial ServicesAuto Loan LankaBangla Auto Loan is designed in a convenient way that helps you to meet the need of Brand new, Recondition or Registered vehicle for your personal or institutional use.LankaBangla Home Loan It is important to choose a good housing finance company which can handhold the customer right through his/her home buying process.A new home brings with it new hopes, joys and emotions. At LankaBangla, we have shared new hopes, joys and emotions with our customers. Our home loan product is customized to provide your solutions with flexible option, guidance and more helping you to fulfill the housing needs. Personal Loan:We all need a helping hand to be able to live our life to the fullest. And in this regard, we believe that we can be your right partner by providing you with our Personal Loan products that will help you meet your needs so that you never have to compromise with all that life has to offer!!!Deposit Scheme:Term Deposit of LankaBanglaLankaBangla is authorized by Bangladesh Bank to receive deposit from individual and institution.Features of Deposit Scheme
Under LankaBangla Deposit Scheme you can invest your money with full trust & confidence. The salient features are: * Safe & Secured * High Return * Flexible/Diversified Deposit Scheme tailored to your needs * Minimum deposit amount of Tk. 100,000 * Minimum duration---Six Months for individual & institution as directed by Bangladesh Bank * Interest payment periodically (Monthly/Quarterly/Half-Yearly/Annually) as per client choice * No incidental costs * Premature encashment allowed after completion of minimum duration * Specialized customer service * Depositor can nominate nominee(s) to withdraw the deposited amount in absence of depositor * Legal guardian can open deposit in the name of minor * Any Individual/Firm/Corporate Houses are eligible to participate in the Deposit Scheme of LankaBangla6.3 Prime FinancePrime Finance started its journey in the year 1996 backed by some leading corporate houses and individual entrepreneurs in the country. Since inception, among others the focus was on the diversity of business which was found as main strength of Prime Finance. Its growth strategy was aimed at increasing income through diversification of operations and broadening the service offered to the customers. The Company has a well-diversified asset base and investment portfolio and the asset quality has been improving every year. The diversification of the earnings stream has also been increasing consistently. This year the main focus of the management was for “promoting financial stability, ensuring long-term sustainability”. Sustainable development is about finding better ways of doing things, both for the future and the present and development is driven by particular approaches without fully compromising the future impacts. Prime Finance has been trying to achieve this sustainability by diversified way of operating approaches. Sustainable growth would be largely dependent on proper Human Resource Management and revamping of the Treasury Department. In a Service Sector, Human Resources are the greatest assets and form the backbone of a sound enterprise. With this end in mind, organizational restructuring has been made to ensure that a proper pool of talents is available all the time. In an environment where the traditional funding source from banks almost dried up, the company decided that efforts to mobilize funds from non-banking sources had to be stepped up. By 2015, we are designing plans to cover eighty percent of our fund requirements from our Treasury Department. Prime Finance is confident that all these approaches will ensure long-term consistent results over the years6.3.1 Products & Services - Financial segments Winning value excellence has been the spirit of Prime Finance. Keeping the varied nature of client base and their unique needs in mind, the Company has been constantly diversifying its products which is evidenced from the following list of versatile products and services: * Lease finance * Term finance * Real estate finance * Bill discounting * Bridge/equity finance * Syndicated finance * SME finance * Hire purchaseDeposit schemes . We have a number of attractive Deposit Schemes to suit your specific requirements. * Monthly income deposit * Annual income deposit * Cumulative income deposit * Double income deposit * Triple income deposit * Housing deposit * Fortune DPSThe Future of IDLC
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7.0 The future of IDLC The futureBanks and Non-Bank Financial Institutions are both key elements of a sound and stable financial system. Banks usually dominate the financial system in most countries because businesses, households and the public sector all rely on the banking system for a wide range of financial products to meet their financial needs. However, by providing additional and alternative financial services, NBFIs have already gained considerable popularity both in developed and developing countries. In one hand these institutions help to facilitate long-term investment and financing, which is often a challenge to the banking sector and on the other; the growth of NBFIs widens the range of products available for individuals and institutions with resources to invest. Through their operation NBFIs can mobilize long-term funds necessary for the development of equity and corporate debt markets, leasing, factoring and venture capital. Another important role which NBFI’s play in an economy is to act as a buffer, especially in the moments of economic distress. An efficient NBFI sector also acts as a systemic risk mitigation and contributes to the overall goal of financial stability in the economy. NBFIs of Bangladesh have already passed more than two and a half decades of operation. Despite several constraints, the industry has performed notably well and their role in the economy should be duly recognized. It is important to view NBFIs as a catalyst for economic growth and to provide necessary support for their development. A long term approach by all concerned for the development of NBFIs is necessary. Given appropriate support, NBFIs will be able to play a more significant role in the economic development of the countryBangladesh economy had passed through a difficult period in 2013 particularly in 1st half, from the perspective of macroeconomic management. The cautious fiscal and monetary policy adjustments adopted by the government in the course of 2013 had contributed to the restoration of macroeconomic stability to some extent. In 2014, we expect Government and Bangladesh Bank will maintain similar cautious approach. The signals emanating from the last few months indicates that liquidity and interest rates scenario of banking channel will largely depend on Government’s bank borrowing target as well as Bangladesh Bank’s stance on money supply and Inflation control. Nonetheless, performance of the economy in 2014 will critically hinge on how the politically challenges facing Bangladesh at the moment are addressed in the coming months.Any prolonged uncertainty in this context will have serious implications for the performance of the banking industry and the economy. Under this predicted constraints, we are planning to greatly impel our deposit drive, channel funds from diversified sources and enhance our participation in BB refinancing schemes to keep our liquidity position comfortable at an optimum cost.IDLC clearly defines its strategy for growth and profitability in 2014 and beyond, through major operational initiatives in line with the Company’s vision to become the best financial brand of the country: * Increase diversity of the revenue streams beyond traditional sources of income * Major focus on lending/investing in green and environment friendly projects from different sectors * Continuing focus on household deposits to reduce cost of funds and ensure liquidity for lending operations * Greater collaboration with multilateral financiers and foreign lenders to offer low cost financing options to clients * Intensive customer and investor awareness programs * Ensuring faster, better and uniform customer service across all branches; * Using ICT as a tool for improved operational efficiency, while focusing on green computing for capacity maximization, cost minimization, and reduction of carbon footprint * Continuing efforts to increase market visibility through marketing and communication initiatives * Higher focus on innovative CRS and sustainable business solution, contributing to better environmental and community development, while emerging as a responsible and sustainable brand.Chapter: 8
Findings
Recommendation & Conclusion |

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8.1 Findings

* As a financial company with outstanding performance record and sound share holding structure, IDLC has access to very low cost source of fund both at home and abroad.

* IDLC is creating more business opportunity by providing different kinds of loans to the customers with easy conditions.

* IDLC is making contribution to increase the small entrepreneurship by providing special SME services.

* IDLC finance Ltd is a unique organization with highly qualified human resource.

* It is maintaining rich customer support desk in every investment banking division which provides one stop service to the clients for any type of services or query.

* It is providing loans at reasonable interest rate.

* SMS/online/email/phone order services provided by IDLC are accelerating the decisions making and transaction process.

* The organization also has lack of lobbying with regulatory power authorities like government to get favorable policy decision.

* The employs of IDLC is not always satisfied with their corporate environment.

* IDLC still takes registered mortgage of property in case of own constructions. Whereas other competitors are taking equitable mortgage of property.

* The process of proving services to customer is slow especially in case of loan.

* Most of the people of Bangladesh have no positive idea about non-banking services, some of them hold negative about the philosophy of IDLC, so they are not interested to deal with this bank.

* The services of IDLC are limited with in specific division of Bangladesh.

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8.2 Recommendations

SOME OF THE RECOMMENDATIONS THAT I WOULD LIKE TO PROPOSE ARE: * Advertisement is the most important factors to introduce any organization, goods products or information to the people, but IDLC is not eager to advertisement that can show their activities in the society. * By increasing investment scope, IDLC can proper utilize their idle money. * In every branch must have women interpreter, who will deal with women customer and understand them about their activities. * IDLC should spread their services all over the Bangladesh. * IDLC can create new investment mode to increase their investment mode by huge research & study * As it is a very price competitive market IDLC should try to provide quick, fast and quality customer service. The company should finds out the unique selling point of its products to counter competition * IDLC can develop the stillness of the manpower by increasing their varieties kinds of training facility on such as Computer Course, English & Arabic Language Course, Business ethics, morality, organization behavior, related topics of non Banking. * IDLC should focus on the employee’s satisfaction.

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8.3 Conclusion

IDLC is one of the most leading financial institutions in our country and it is operating successfully. The current report aimed at critically examining the services of investment bank. The main objective of this report was to evaluate the analysis of Services of IDLC finance ltd. From the Analysis it has been seen that the services of IDLC finance ltd is really satisfactory. IDLC is improving their services and performance day by day by rapidly flourishing technology and its growing application to their business. Apart from that IDLC is increasing diversity of the revenue streams beyond traditional sources of income and focusing highly on innovative CRS and sustainable business solution, contributing to better environmental and community development, while emerging as a responsible and sustainable brand. With their strong effort and proper structure with in five years IDLC will prove that as non-banking financial institution they are best, reliable and trustworthy organization compared to others bank and non-banking financial institutions.

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Bibliography

1. Annual Report from 2007 and 2012 of IDLC 2. Half yearly Report 2013 of IDLC 3. Web site of IDLC-Retrieve from www.idlc.com 4. Web site of Prime Finance-Retrieve from www.primefinance.com 5. Web site of Lanka Bangla-Retrieve from www.lankabangla.com 6. Web site of UNITED-Retrieve from www.united.com 7. The daily Star. 8. Valuable discussion with supervisors and other officials during internship period. 9. CRE training materials collected from IDLC. 10. 11. 12. 13.