Swot analysis of idlc
The sanction and disbursement of the loans are hassle-free.
Product portfolio: IDLC has diverse product portfolio for customers which made them second to none in non banking financial industry. Document submission If a prospective client passed through the information checklist process then the client is asked to submit some documents which are required for further assessment.
Organogram of idlc
IDLC began its operation in as the first leasing company in Bangladesh. His past successes or failures may be determinative of his future business success. IDLC has to maintain some rules and regulations and some defensive measures to justify a loan application. In the case of loan syndication, a participating financial institution should have a policy to ensure that it does not place undue reliance on the credit risk analysis carried out by the lead underwriter. Sanction of loan After justifying the loan proposal the loan is sanctioned to the proposer. IDLC began its operation in as the first leasing company in Bangladesh. Goal: Long term maximization of Stakeholders value Corporate Philosophy: Discharge the functions with proper accountability for all actions and results and bind to the highest ethical standards. Continuity of Liberalization: Government has continued to liberalize the economy towards more market orientation. I made sincere efforts to study related materials, documents, observe operations performed in IDLC Finance Limited and examine relevant records for preparation of the report. They do research on the market prospect and the conditions of possible clients' business. Over the last two decades, IDLC has grown in cycle with the country's transition into a developing country and has emerged as Bangladesh's leading multi product financial institution. Credit administration; 5. Documentation establishes the relationship between the financial institution and the borrower and forms the basis for any legal action in a court of law. I hope the paper will give a clear idea about the activities and role of term loan procedures and performance analysis of IDLC financial limited.
Financial institutions will put in place systems to ensure that management is kept advised on a regular basis on all developments in the recovery process, may that emanate from the credit workout unit or other parts of the credit department.
To retain prospective clients, IDLC sets lower interest rate for a term loan. Effective suggestions by the employees are immediately set for action.
Is it part of borrowers' inventory? Liquidity Ratio L 1. The researcher has selected Union Capital limited. Such a policy shall, mong other things, provide for acceptability of various forms of collateral, their periodic valuation, process for ensuring their continuing legal enforceability and realization value. Credit application forms should be sufficiently detailed to permit gathering of all information needed for credit assessment at the outset. The open and free flow of communication ensures clarification of any queries in no time—from any level of hierarchy. The over all work force of the company is considered as key resources for the organization. Cumulative Term Deposit. In line with this view, IDLC has always been keen to commit its resources not only towards maximizing our economic profitability but also to offer better quality of life to both our internal and external stakeholder groups. As NBFIs can take deposit for less than one year from any individuals as banks can do, the deposit base of IDLC is not strong enough to reduce the average cost of fund.
Lack of effective foreclosure laws and recording system creates possibility of forgery and disputes. Sincewhen IDLC was formed as the pioneering leasing company in Bangladesh, the company continues to evolve as an innovative financial solutions provider.
Idlc finance hierarchy
CIB provides necessary about the credit condition of the proposer. Thus managing credit risk for efficient management of a FI has gradually become the most crucial task. Assessing information of different activities of Union Capital as well as the other competitors will be a great problem because of confidentiality. Term Deposit Schemes 2. So, the importance of best financial practice is mandatory to these institutions. These are: 1. During my research at IDLC financial limited I have come across with different functions of the company. Interest rates are negotiated and predetermined before the term loan is sanctioned to a borrower. Financial institutions should have industry profiles in respect of all industries where they have significant exposures. Capital: are material here, what is the borrower's financial Certain questions net worth? All the students of the BBA Program after successfully completing their 7th semester are placed at different organizations as interns to bridge their theoretical knowledge with the practical fields and real life business situation. Home Equity Loans 9. However, the lease operation can also be expired early through partial termination or foreclosure.
The researcher has observed all the activities and financial statements of Union Capital Limited and three other competitors. The institution must carry out its own due diligence, including credit risk analysis, and an assessment of the terms and conditions of the syndication.
The aggregation of such grading across the borrowers, activities and the lines of business can provide better assessment of the quality of credit portfolio of a FI.
The concept of innovation is in-built into the working culture.
based on 65 review