Analysis of IDLC Finance Limited & Non-Bank Financial Institutions Industry in Bangladesh: An internship experience perspective

Abstract

This whole report deals with IDLC Finance Limited and Non-banking financial institutions of Bangladesh with a view of internship experience perspective. I had three months internship program at IDLC Finance Limited. I worked with the Consumer Division of IDLC finance limited. The products that IDLC offers to client under consumer division, plays an important role for the development of the country as well as the economy. There are mainly three objectives of the report. This report gives overall idea about the Non-Bank Financial Institutions Industry, gives whole knowledge about IDLC and also helps me to evaluate my performance. This report can be significant for the employees of IDLC, management team of the company, competitors of the company and also it will benefit the society as a whole. I have worked in IDLC and it is mainly a Non-banking Financial Institution. Recently the size of NBFIs are increasing day by day. It has now total portfolio of Taka 850 billion. NBFIs are mostly customer centric and highly focused on secure investment. So the default rate is very much low compared to the banking industry. So this industry is getting bigger day by day. Winter and spring is basically home and retail investment season for NBFIs. SME investments increase in April to May before closing of the fiscal year. Some external economic factors like interest rate, inflation effects the buying behavior of the customers. If the interest rate is high then customers are not likely to buy the products. NBFIs are using digital technology to faster their service. And they are very much successful in this case as they provide much more faster and efficient service at very short time. Conventional banking systems are still very much slow, which is a big advantage for NBFIs. But if there is any change in political system then NBFIs may face some problem while changing their strategies. This industry has to strictly maintain all the laws. All NBFIs are regulated by Bangladesh Bank. Central bank monitors their activity. And they have to maintain all their rules. If any company want to enter in this industry they must have minimum capital requirements which is very high, they also have to have the licensure laws and also have patents. Buyers and supplier impose power in NBFIs. Substitutes of NBFIs are banks. Banks can be threat for them. There is huge industry rivalry among NBFIs. They are always competing against each other. The full name of IDLC finance limited is Industrial Development Leasing Company of Bangladesh limited. Reason behind the growth in income steam is diversification efforts which has resulted in immense success for IDLC. It focuses on increasing branches. Idlc gained huge customers in a short time. They capture all level of people. IDLC tries its best to serve customer with efficiency. And most of the customers get hassle free service from them. Under operation sector, there are three divisions- consumer, SME & corporate. In consumer division, IDLC has 4 types of consumer products. Those products are very much helpful to different level of people like- home loan, car loan and personal loan and also deposits. In this chapter I also have discussed the strengths, weaknesses, opportunities and threats of the company. At the end there are some strategies for meeting the challenges and opportunities. I was in Dilkusha Brunch of IDLC Finance Limited. I worked under the Operations Department. My main job was indexing the files, and also I had to write list of documents. I used to get training from my supervisors while learning from them. My contribution to the department is discussed in this chapter. I also got opportunity for applying my skills such as excel knowledge, MS word, active listening, teamwork, and also leadership skills. I could develop some new skills like advance excel knowledge, maintaining files, communication, creativity and customer servicing. I also could apply my academic knowledge to some extent. Employees should be monitored for increasing their efficiency. Lunch time for the employees should be limited. Sales and marketing team can become a separate department that may help the organization to increase their customer. The area of the discussion room should be bigger. Opportunity of getting contractual job must be decreased. Employees must be rewarded for their valuable work. They should train their employees for being organized that will help to increase their productivity. After evaluating myself as an employee, I feel that I need to be more organized, focused and also need to have more self-control. I need to recognize the priority of work. I also need to understand that multi-tasking is not good all the time. IDLC came out with a lot different sort of products, which eventually attracted the customers. Though Bangladesh is a poor country, but people of this country are very much dream loving. Most of the people are now achieving those dreams easily with the help of loan from IDLC.