SME Banking of BRAC BANK Limited

Abstract

Bangladesh is one of the world's fastest-growing economies. Agriculture, service-oriented businesses, and certain industrial industries are the mainstays of this country's economy. SME Bangladesh's economy is extremely significant. SME lending is a significant part of the banking industry. Small and Medium Enterprises (SME) are claimed to account for around 50% of GDP and 60% of employment. Small and medium-sized businesses are expected to account for 25 to 35 percent of global manufactured exports. Financial institutions all across the world are working hard to increase their exposure to small and medium-sized businesses. The Bangladesh Bank has recently requested all banks to place a greater emphasis on SME banking operations and has issued certain recommendations to help SME banking. I completed my thesis report on the topic "SME Banking of BRAC Bank Ltd" as part of my BBA study at United International University Bangladesh To begin, the study provides an overview of the BRAC bank, including its vision, mission, product, Credit Policy, Credit Approval, SME lone produce. Then I compared the last five years SME loan performance of BBL, MBL, JBL, and SEBL units, and based on that, I hope to meet my objectives for this report. This paper examines the operations of the chosen banks in the SME sector. I believe that my study will provide you with a thorough view of the selected banks' SME banking and SME loan performance during the previous five years. It contains also the analysis of the interest rates and \processing fees of the SME loans which reveals the current interests rates on SME loan of all the banks along with the duration of the loan supplied to the SME clients in the present market. SME loan disbursement, SME loan disbursement Growth ratio, SME outstanding ratio, and SME interest income ratio are also examined in the study. In terms of number of SME branches, Service points, clients, increase in SME outstanding, disbursement of SME, and SME interest income ratio, I observed that BBL performs significantly better than other banks in the SME sector.