5.

1 Findings
After the interpretation of the questionnaires some findings of interpretations can be identified, these are given below: In a response to the [Link].1 it is observed that most of the customers are not taking SME loan from any bank that means still SME entrepreneurs of our country are dependent on the informal sources of funding rather than formal and legal sources because SME banking is not yet reached to the respective borrowers or we can say commercial banks are not properly concentrate or focused their SME banking services. Another survey of questionnaire shows that most of the customer who did not take SME loan yet they wants to take SME loan and get facilitate to this service and wants to rely a formal sources of funding. In a response to the customer requirements about SME financing most of the customers choose favorable and flexible terms and conditions because still commercial banks are shy to lend to the SME owners and they set their SME financing scheme with rigid and unfavorable terms and conditions which is treated as immense barrier to the SME banking, identified by the customers. And then the customer focuses on the suitable interest rate and installment. In a study to the role of banking sector of SME financing most of the customer responses positively like about 70% customer think that the contribution of banking sector to the SME financing is huge. Because the shares of private sector banks in disbursement of credit to the SME sector has been increasing in recent years comparatively at a higher rate then other financial institutions. For increasing the popularity of SME banking the customers recommends the commercial banks to increase their advertising policy and no. of category of SME loan etc.

5.2 Major Problems

In SME Loan Service the commercial banks doesnt comply with the requirements of its policy and Bangladesh bank guidelines exactly. Bank takes relatively more times in granting loans advances to different parties. It seriously discourages the persons who are inclined to get loan for their urgent purpose. Mode of disbursement, charge documents etc. creates bottleneck in Loan approval process. Head Office takes so longer time in processing and approval of SME Loan. Sometimes the total Sanctioning Process event takes month after month to give the final decision. Many banks does not sanction loan to all sectors equally as they require, rather it concentrates its loan and advances within some limited fields and category. There is discrimination in sanctioning sector wise breakup of loans and advances. Small and Medium enterprise (SME) are more popular and require things among the people of various classes but many doesnt have any customized schemes targeting various classes of people. loan are also very inconvenient and discourage people. Even the effective rate of interest is very high. And the terms and conditions of SME Lack of information on loan application requirement among the SME loan seekers.

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Absence of an appropriate and clear cut legal framework for enforcing quick recovery. Lack of sufficient Executives or Officers in the bank especially in the Credit Division hampers the Loan Sanctioning Process in time. Unfavorable and rigid terms and conditions create as immense barriers for SME banking and discourage the SME entrepreneurs for seeking financial assistance from the banks. Young and new SME entrepreneurs are mostly depends on the informal and inefficient sources of funds and financing like lending money from family and friends because of their inability to comply with the banks collateral requirements.

5.3 Recommendations
The proposed strategies should be implemented by Shahjalal Islami Bank as well as other commercial banks for SME financing on the short-term, medium term & long term basis. Poverty alleviation strategies and policies for SMEs should be

developed which will create job opportunities and enhance living standards for large segment of this poverty ridden country. Banks should not provide loans only to urban small entrepreneurs;

rather they should go to rural areas. The lending institutions should be encouraged to emphasize on the relationship lending technologies, which is based on soft information. The soft information may include the character and reliability of the SMEs owner based on direct contact over time by the institutions loan officer; the payment and receipt history of the SME gathered from the past provision of loans, deposits, or other services to the by the institution; or 70 | P a g e

the future prospects of the sme garnered from past communications with SMEs suppliers, customers, or neighboring businesses Banking norms and attitudes towards SME financing should be changed as because small enterprises differ considerably from the traditional clientele and do not conform to the norms detailed in the manual of banking. SME Loan sanctioning and disbursement procedure should be easy and flexible being considered the requirements of different classes of people and promote favorable terms and conditions to the respective borrowers. Bottlenecks or barriers should be removed by taking advanced steps in mode of disbursement, charge documents and approval process. .Periodical professional training course should be arranged for technical staff of SMEs. SJIBL can establish R&D institute for Enterprisers and Entrepreneurial development. Women entrepreneurship should be encouraged. Commercial

bank should design policy to encourage more and more women to be involved in entrepreneurial Endeavors. Banks should disburse their SME loans in various sector rather

than specific scheme. Business Power for sanctioning loans and advances can be increased at branch level. Loan facility parameter should be expanded so that all the people can get loan according to their needs. More SME service center need to be added to fully take the advantage of the huge potential customer segments.

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Te Bank should have more conference in overseas, work shop, symposium, and seminar for more expansion of SME loan.

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6.0 Conclusions
In conclusion, I can say that Small and medium enterprises (SMEs) act as a vital player for the economic growth, poverty alleviation and rapid industrialization of the developing countries like Bangladesh. SMEs are significant in underlying countrys economic growth, employment generation and accelerated industrialization. Government of Bangladesh has highlighted the importance of [Link] a vibrant SME sector is considered as one of the principal driving forces in the development of a market economy. They stimulate private ownership and entrepreneurial skills, and are flexible and can adapt quickly to changing market demand and supply situations, generate employment, help diversify economic activity, and make a significant contribution to exports and trade. Even in the developed market economies SMEs account for a large share in output and employment. There are many constraints in developing SME sector in Bangladesh. Several studies have identified different constraints, ranging from access to credit to marketing their products and services. However, access to credit or financing problem is considered as the main constraint. Commercial banks are found reluctant to extend credit to the SME sector. The main reasons are high risk and monitoring cost. To meet the challenge and reduce the perceived risk in lending to SME sector, the Bangladesh Bank has embarked on a program to expand and redesign the existing refinance window of Bangladesh Bank into Small Enterprise Fund (SEF).By taking these kind of attempt to encourage SME financing most of the commercial banks are not maintaining the proper guideline by Bangladesh Bank. In case of present situation private commercial banks would have to largely shift toward providing small and medium-sized loans given the risks associated with corporate banking. Corporate banking is profitable, but risks remain. On the other hand, a small or medium enterprise takes loans of manageable size. So, private banks will ultimately have to attach increased importance to SME banking.

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On the ground of Shahjalal Islami Bank Limited I can say that it is one of the most potential Islamic Banks in the banking sector. It has a large portfolio with huge assets to meet up its liabilities and management of this bank is equipped with the export bankers and managers in all level of management. Though Shahjalal Islami Bank Limited is a new comer of this SME banking it can creates new dimensions of prominent and profitable sectors for the bank itself and also contributes of the SMEs in the national economic change such as socio-economic development and employment generation as well as poverty alleviation.

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7.0 Bibliography
Stephen P Robbins (2000). Organizational behavior: context, Foundation of organization structure. Textbook General Management, chapter15 page 402-430 Choudhury, Toufique Ahmed, (2008) Reading Materials on Principles and Practices of Banking, Bangladesh Bank guidelines, (2010) reading materials on Entrepreneurs; How to Approach Banks; a Guide for Bangladesh Entrepreneurs Bangladesh Bank guidelines, (2009) reading materials on Foreign Exchange Transactions Exchange Transactions About Account [Link] Shahjalal Islami BankServices[Link] Banks; a Guide lines for Foreign

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8.0 Appendix
SJIBL A/C ACD MSD MSND MTD ATM CEO = Shahjalal Islami Bank Limited. = Account. = Al Wadiah Current Deposit Accounts. = Mudaraba Savings Deposit Accounts = Mudaraba Short Notice Deposit Accounts = Mudaraba Term Deposit Accounts. = Automated Teller Machine = Chief Executive Officer

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