Changing Scenario of Stock Market

CHAPTER - ONE

Introduction

1.1 . Background of the Report

The former Industrial Development Bank of Pakistan (IDBP) and the Equity Participation Fund (EPF) were established for the industrial development of Pakistan. Two institutions were working during pre liberation period. After liberation both were converted into a single institution named Bangladesh Shilpa Bank. Bangladesh Shilpa Bank comes into existence on October 31st, 1972 by the Promulgamation of Bangladesh Shilpa Bank order 1972 (president's order no 129 of 1972). The BSB order, 1972 was amended subsequently by the parliament to provide more operational autonomy to its management. After getting liberation a newly born country required rapid financial assistance and advisory services to industry. Bangladesh Shilpa Bank is the prime development financial institution of our country to support such industry. It extends financial assistance both in local and foreign currencies for new industries.

1.2. Objectives of the Report

Main objective of my study is to find out the role of Bangladesh Shilpa Bank (BSB) in the industrial sector of Bangladesh. The other objectives are the following:

* To understand about various departmental activities and their key responsibilities.

* To find out overall contribution to GDP of the Bangladesh economy through industrialization.

* To review the loan sanctioning procedures and find out discrimination between practice and general procedures.

* To evaluate the trend of growth rate and acceleration of industrialization.

* To determine the limitation of Bangladesh Shilpa Bank (BSB).

* To recommend necessary steps to overcome such problems.

* Evaluation and justification of loan appraisal procedure.

1.3. Methodology of Collecting Data

This is a descriptive type of research that has undertaken insights and understanding about overall operation of Bangladesh Shilpa Bank. This report is prepared on the basis of primary and secondary data. The relevant data information was collected through direct interview of the personnel engage in various departments of Bangladesh Shilpa Bank. The secondary data source is annual report of the BSB, which were collected from personal visit to the bank. The subject matter related to methodology of this report is the following:

Primary sources:

Direct Interviews

Official records

Observation of various organizational procedures

Secondary sources:

Annual reports of BSB

Relevant papers and different books

Manual of different departments

periodical publications

BSB order 1972

Project appraisal of different organizations

1.4. Structure of the Report

The report is organized in the following way, in Chapter One Includes Background of the Report, Object of the Report, Methodology of collecting data, And Structure of the report. Chapter Two focus on only literature review. Chapter Three highlights about the organization that follows: Institutional overview, Capital Structure and Sources of Fund, Ownership, Mission, Management, Functions, Economy of Bangladesh, and Other Activities. And Part B includes: Loan operation department, Documentation department, Machinery procurement department, Project implementation department, Central recovery department, Loan accounting department, Project rehabilitation department and Law department.

Chapter Four represents analysis of data, facts figures and own opinion on Contribution to GDP, Employment generation and poverty alleviation, Advisory services for industries, Encourage entrepreneurs and cooperation with them, Affects on infrastructures development, Research related activities for industry, and Constraints to industrial development. Chapter Five includes strength of BSB, Weaknesses of the study, findings of the study, Recommendations, and conclusions and finally references and appendix.

1.5. Justification of the Report

This study will have both practical and academic value. It will help to get a clear idea about the role of BSB in the industrial sector of Bangladesh. On the other hand, the findings of this study will help to take appropriate actions and steps for the betterment of the existing practice which basically help the Industrial development of the country.

1.6. Limitation of the Report

The limitations are given below:

1. Shortage of time I could not spend sufficient time which was necessary to make the report more representative of the facts.

2. Many personnel of the BSB reluctant to provide useful information.

3. Most of the information about the topic relevant in this purpose was secret form the point of view of organization. So this kind of information could not be collected.

4. Sufficient records, publications, facts and figures are not available. These constraints narrowed the scope of the real analysis.

5. For the reason of confidentiality, some useful information cannot be expressed in this report.

6. It takes six moths or more for completion of the Final Report but I am an intern in the BSB for only three months. So to acquire a vast knowledge it is the most important limitation to me.

CHAPTER TWO

2. Literature Review

While preparing report I was reviewed various