This document is an internship report submitted by a student to fulfill their program requirements. It provides an overview of the student's internship at BRAC Bank Limited, where they analyzed the bank's credit risk management practices. The report includes sections on the bank's profile, credit policies, approval and collection processes, performance analysis of loan classifications, and recommendations. The objective is to evaluate BRAC Bank's overall credit risk management system and identify ways to improve its performance.
Internship report on BRAC bank sme financingWINNERbd.it
This document provides an overview of BRAC Bank's SME Banking Division. It discusses how BRAC Bank aims to serve small and medium entrepreneurs who were previously ignored by larger commercial banks. BRAC Bank has established a large network across Bangladesh to provide SME loans, with over 400 unit offices, 67 zonal offices, and over 1,800 customer relationship officers. The SME division has served over 320,000 entrepreneurs so far, disbursing over 144 billion taka in loans to small and medium businesses.
The document is a report on the financial performance and analysis of BRAC Bank submitted by a group of students. It includes an executive summary, introduction, background, objectives, methodology and limitations of the report. It provides an overview of BRAC Bank including its vision, mission and organizational structure. It discusses theoretical aspects like trend analysis of deposits, loans and advances, and investments. It analyzes the bank's loan classification status and different financial ratios like current ratio, debt ratio, credit to deposit ratio and cost income ratio. The document conducts analysis of BRAC Bank's financial performance over several years.
This document is a research proposal submitted by Shawkat Zaman to his university that examines factors influencing the adoption of internet banking. It begins with an introduction and literature review on topics like ease of use, usefulness and costs saved. It then proposes a conceptual framework and research questions/hypotheses. The methodology section outlines the research design, sampling, measurement, data collection and analysis. If approved, the study would distribute questionnaires and analyze the data to understand the impact of internet banking factors on customer retention at BRAC Bank.
BRAC Bank Limited started its journey in 2001 with a vision to be the market leader in providing banking services to promote broad-based participation in the Bangladesh economy. It focuses on serving small and medium enterprises through its SME division. BRAC Bank operates through 69 branches and has major shareholders including BRAC, International Finance Corporation, and Shore Cap International. The bank aims to provide financing to currently underserved enterprises across rural and urban Bangladesh. It offers various banking products and services to both corporate and individual customers through its corporate banking, retail banking, SME, and treasury divisions.
BRAC Bank Limited is a commercial bank in Bangladesh that was established in 2001. It aims to provide banking services, particularly to small and medium enterprises, and pursue profitable market niches not served by conventional banks. The bank has over 150 branches across Bangladesh and uses technology like online banking and a UNIX-based software system to provide efficient services to its growing customer base. It focuses on sustainable growth, maintaining low costs, and balancing profitability with social responsibility.
BRAC Bank Limited is a commercial bank in Bangladesh that focuses on providing banking services to small and medium enterprises. It has a vision of being the market leader through supporting corporate and small businesses. The report provides an overview of BRAC Bank, including its corporate vision, mission, values and departments. It then focuses on BRAC Bank's small and medium enterprise division, describing the history, importance, products, network coverage, selection process, loan process and monitoring of SME clients. The report also discusses strategies like market concentration and product diversification that are important for expanding BRAC Bank's SME business.
Customer Satisfaction of SME Department in BRAC Bank Ltdkazi rasel
The document discusses BRAC Bank's SME division and a study on customer satisfaction with it. It provides background on BRAC Bank, outlines objectives to examine the SME division and conduct a customer satisfaction survey. Key findings of the survey found that 72% of customers found SME activities to be customer-oriented, but many were dissatisfied with loan amounts, interest rates, and security documentation processes. Suggestions are made to improve customer service, increase loan amounts, reduce interest rates and documentation processes.
Internship report on BRAC bank sme financingWINNERbd.it
This document provides an overview of BRAC Bank's SME Banking Division. It discusses how BRAC Bank aims to serve small and medium entrepreneurs who were previously ignored by larger commercial banks. BRAC Bank has established a large network across Bangladesh to provide SME loans, with over 400 unit offices, 67 zonal offices, and over 1,800 customer relationship officers. The SME division has served over 320,000 entrepreneurs so far, disbursing over 144 billion taka in loans to small and medium businesses.
The document is a report on the financial performance and analysis of BRAC Bank submitted by a group of students. It includes an executive summary, introduction, background, objectives, methodology and limitations of the report. It provides an overview of BRAC Bank including its vision, mission and organizational structure. It discusses theoretical aspects like trend analysis of deposits, loans and advances, and investments. It analyzes the bank's loan classification status and different financial ratios like current ratio, debt ratio, credit to deposit ratio and cost income ratio. The document conducts analysis of BRAC Bank's financial performance over several years.
This document is a research proposal submitted by Shawkat Zaman to his university that examines factors influencing the adoption of internet banking. It begins with an introduction and literature review on topics like ease of use, usefulness and costs saved. It then proposes a conceptual framework and research questions/hypotheses. The methodology section outlines the research design, sampling, measurement, data collection and analysis. If approved, the study would distribute questionnaires and analyze the data to understand the impact of internet banking factors on customer retention at BRAC Bank.
BRAC Bank Limited started its journey in 2001 with a vision to be the market leader in providing banking services to promote broad-based participation in the Bangladesh economy. It focuses on serving small and medium enterprises through its SME division. BRAC Bank operates through 69 branches and has major shareholders including BRAC, International Finance Corporation, and Shore Cap International. The bank aims to provide financing to currently underserved enterprises across rural and urban Bangladesh. It offers various banking products and services to both corporate and individual customers through its corporate banking, retail banking, SME, and treasury divisions.
BRAC Bank Limited is a commercial bank in Bangladesh that was established in 2001. It aims to provide banking services, particularly to small and medium enterprises, and pursue profitable market niches not served by conventional banks. The bank has over 150 branches across Bangladesh and uses technology like online banking and a UNIX-based software system to provide efficient services to its growing customer base. It focuses on sustainable growth, maintaining low costs, and balancing profitability with social responsibility.
BRAC Bank Limited is a commercial bank in Bangladesh that focuses on providing banking services to small and medium enterprises. It has a vision of being the market leader through supporting corporate and small businesses. The report provides an overview of BRAC Bank, including its corporate vision, mission, values and departments. It then focuses on BRAC Bank's small and medium enterprise division, describing the history, importance, products, network coverage, selection process, loan process and monitoring of SME clients. The report also discusses strategies like market concentration and product diversification that are important for expanding BRAC Bank's SME business.
Customer Satisfaction of SME Department in BRAC Bank Ltdkazi rasel
The document discusses BRAC Bank's SME division and a study on customer satisfaction with it. It provides background on BRAC Bank, outlines objectives to examine the SME division and conduct a customer satisfaction survey. Key findings of the survey found that 72% of customers found SME activities to be customer-oriented, but many were dissatisfied with loan amounts, interest rates, and security documentation processes. Suggestions are made to improve customer service, increase loan amounts, reduce interest rates and documentation processes.
This internship report provides an overview of credit risk management at Southeast Bank Limited's Pragati Sarani branch in Dhaka, Bangladesh. The report discusses the bank's history, vision, products and services, organizational structure, and key performance metrics related to loans and credit. Specifically, the report examines the bank's procedures for credit approval and management of loan defaults. It also provides an analysis of the bank's loan portfolio, classified loans, profits, and a SWOT analysis. The overall aim is to analyze credit risk management practices at the branch.
This report analyzes the financial statements of Commercial Bank of Ceylon Plc for the 2011/2012 fiscal year. Ratio analysis was used to measure the bank's profitability, liquidity, and market performance. The bank had an excellent 2012 fiscal year, with assets exceeding Rs. 500 billion and post-tax profits reaching Rs. 10 billion. Key ratios such as return on assets and equity improved from the previous year, indicating better profitability and efficiency. The bank was also able to maintain strong liquidity and dividend payments for shareholders. In conclusion, the analysis found that Commercial Bank of Ceylon Plc continues to be a sound investment for existing and prospective shareholders.
Brac sme banking activitis letter of transmittalWINNERbd.it
This internship report summarizes the Small and Medium Enterprise (SME) banking activities of BRAC Bank Limited. It discusses BRAC Bank's SME division and loan products, including eligibility criteria. The report also analyzes SME loan repayment behavior based on borrower characteristics like age, education, loan amount. Additionally, it provides a comparative analysis of SME loan schemes across six major banks in Bangladesh and identifies strengths, weaknesses, opportunities and threats for BRAC Bank's SME division.
This document discusses credit appraisal, which refers to assessing a borrower's creditworthiness or ability to repay debt. It explains that banks conduct thorough analyses using financial ratios, risk evaluations, and other concepts to judge if a borrower poses default risk. The key aspects banks examine include the loan reason, company finances/history, management, market conditions, and ability to meet obligations. Effective appraisals benefit both banks and firms. Banks ensure loan safety while firms can more easily obtain financing. The document also outlines various stages in the appraisal process like feasibility studies and investment phases to thoroughly evaluate creditworthiness over time like a project cycle.
An Internship report on Evaluation of Credit Risk managementSohag Jafrul
Vice Chairman
Managing Director
Deputy Managing Director
Senior Executive Vice President
Executive Vice President
Senior Vice President
Vice President
Senior Assistant Vice President
First Assistant Vice President
Assistant Vice President
Senior Principal Officer
Principal Officer
Senior Executive Officer
Executive Officer
Senior Officer
Officer
Junior Officer
Trainee Assistant Officer
2.9 Organization Structure:
The organizational structure of Southeast Bank Limited is divided into two broad categories:
1. Head Office
2. Branches
Head Office:
The head office is located in Dhaka. All policy decisions, planning & development, monitoring &
General banking activities of agrani bank , internship report, aiub by sudipt...Sudipta Saha
The document is a letter of transmittal from Sudipta Saha submitting their final internship report on the general banking activities of Agrani Bank Ltd. to Mr. R Tareque Moudud of American International University-Bangladesh. Sudipta Saha completed a 3-month internship at Agrani Bank Ltd.'s Wasa corporate branch. The letter states that the report aims to comprehensively include all relevant information and analysis, and meet the university's standards. Sudipta Saha requests that the report be accepted and acknowledges their efforts in preparing it.
This document analyzes the financial performance of Janata Bank from 2009-2013. It finds that the bank's current ratio fluctuated around 1, while its debt ratio decreased from 95.28% to 93.67% over this period. The bank's return on assets increased from 1% to 1.42% except in 2012 when it was -3.5%. The study recommends that Janata Bank reduce operating costs to decrease its cost to income ratio and reconsider its capital structure to lower debt levels.
This document provides an acknowledgement, declaration, contents list, and introduction for a study on credit risk management at Syndicate Bank. The study was conducted in partial fulfillment of an MBA degree from Osmania University between 2009-2011. It acknowledges the support provided by the college principal, head of department, college lecturers, and an employee from Syndicate Bank. The declaration confirms the work is original and was conducted under the guidance of an external project guide.
This document appears to be a summer training project report submitted for a Post Graduate Diploma in Management program. The report focuses on credit appraisal for business loans. It includes an executive summary that provides an overview of factors considered in credit appraisal like credit history and financial guarantees. It also discusses the importance of credit for banks and associated risks. The report aims to understand various technical aspects of appraising loans to business units and projects, including assessing working capital and term loans. It will also cover non-performing assets and debt restructuring.
This document is a project report submitted by P. Pavithra in partial fulfillment of the requirements for a Master of Business Administration degree from Saveetha School of Management. The project focuses on credit risk management at State Bank of India's Park Town branch. It includes a certificate verifying the project as Pavithra's original work. It also includes an acknowledgment, declaration, abstract, and table of contents sections.
1. The document discusses the various types of credit facilities sanctioned by banks including fund based facilities like cash credit, term loans, etc. and non-fund based facilities like letters of credit and guarantees.
2. It provides details on the credit appraisal process undertaken by banks which involves collecting documents from applicants, conducting risk ratings, verification checks, site visits and analysis of viability before sanctioning loans.
3. The key aspects of credit appraisal covered are the different types of loans, the process flow from application to sanction, checks and validations performed.
This document is an internship report submitted by Sana Ahmed for her internship at Burj Bank. The report includes an introduction, acknowledgements, abstract, executive summary and several chapters. Chapter 1 provides background on the internship and study. Chapter 2 introduces banking in Pakistan and provides details on Burj Bank, including its vision, mission and organizational structure. Chapter 3 discusses Burj Bank's products, services and departments. The report also includes a SWOT analysis and conclusions.
Internship report on capital market exposure of brac bankWINNERbd.it
This document is an internship report submitted by Rumpa Saha to BRAC Business School at BRAC University. The report focuses on analyzing the capital market exposure of BRAC Bank Limited over a three month internship period from January to April 2012. Some key points:
- BRAC Bank is one of the fastest growing banks in Bangladesh with over 150 branches and aims to assist in building an enlightened, just and poverty-free Bangladesh.
- The report provides an overview of BRAC Bank, its vision and values. It also details the shareholding structure and board of directors.
- The objectives are to understand BRAC Bank's capital market investment procedures, regulations from Bangladesh Bank, and analyze
This internship report provides an overview of BRAC Bank Limited's SME Banking Division. It discusses BRAC Bank's history and growth, including establishing over 300 SME unit offices across Bangladesh. The report also outlines some of BRAC Bank's major products and services, with a focus on its wide range of retail and SME loan offerings. Challenges facing BRAC Bank's SME division are analyzed, such as high interest rates, defaulter rates, and risks associated with the SME sector. The report provides insights into BRAC Bank's efforts to reduce credit risk and deal with defaulters through strict loan approval processes and a specialized recovery wing.
Agrani Bank Limited is a nationalized commercial bank in Bangladesh that was formed in 1972 by taking over assets and liabilities of two other banks. It has over 900 branches throughout Bangladesh and overseas. [The bank's vision is to provide banking services to the masses to support Bangladesh's economic growth. Its mission is to be an innovative leader in performance and customer service. The bank aims to serve customers and earn profits while supporting Bangladesh's economy and entrepreneurs.]
PRESENTATION ON FINANCIAL STATEMENT ON THE BASIS OF A...Naymul Islam Hemel
The document discusses the presentation of a financial statement for BRAC Bank based on its annual report. It provides an overview of BRAC Bank, including that it was established in 2001 to provide services to small and medium enterprises. It also outlines the bank's distribution network including 157 branches and over 350 ATMs. The document then analyzes BRAC Bank's financial reporting practices, finding that it discloses general information, adheres to accounting standards, and ensures uniformity in its financial statements and measurements. However, it does not disclose some contingent losses or use of reserves.
The document provides an overview of project financing and Union Bank of India. It discusses how project financing is used to fund large infrastructure projects and is emerging as a preferred alternative to conventional financing. It also provides details on Union Bank of India such as its establishment, services offered, branches, technology initiatives and rankings. The document outlines the steps involved in project financing at Union Bank including conducting feasibility studies, assessing financial health, determining credit ratings, fixing interest rates and sanctioning and disbursing loans. Conducting in-depth feasibility studies of the technical, market and organizational aspects of a proposed project is a key part of the process.
Credit risk management practice in eastern bank limitedSyed Fazle Imam
- The document provides background information on Credit Risk Management practices at Eastern Bank Limited's Gulshan branch in Bangladesh.
- It discusses the objectives, scope, sources of data/methodology, and limitations of studying EBL's credit risk management procedures for SME loans.
- EBL was formed in 1992 after taking over branches of the former Bank of Credit and Commerce International in Bangladesh. It has grown significantly in recent years through strategic changes, new technology/products, and a focus on both wholesale and retail banking.
The document discusses performance evaluation of 10 private commercial banks in Bangladesh using various financial ratios. It provides background on the banking sector and objectives of the study. The study analyzes 2 years of data for profit ratios including return on equity (ROE), return on assets, net interest margin and earnings per share for banks like AB Bank, Bank Asia and Brac Bank. It finds that based on ROE, Bank Asia showed better performance in 2009 than 2008, while Brac Bank performed better in 2008. The document also provides details on the functions of Bangladesh Bank and overview of the selected private banks.
Report on financial performance measurement for financial year 2011.acc101manikmolla
This report analyzes the financial performance of Brac Bank Limited in Bangladesh for the financial year 2011 using various methods and tools. It applies horizontal analysis, vertical analysis and ratio analysis to the bank's balance sheet, profit and loss account, and cash flow statement for 2011 and compares the results to industry averages and other banks. The analysis finds that Brac Bank's financial condition changed over the year based on comparisons within the company and between it and its competitors. Various ratios are also calculated to assess the bank's financial position. The report was prepared by a group of students for an assignment.
This internship report provides an overview of credit risk management at Southeast Bank Limited's Pragati Sarani branch in Dhaka, Bangladesh. The report discusses the bank's history, vision, products and services, organizational structure, and key performance metrics related to loans and credit. Specifically, the report examines the bank's procedures for credit approval and management of loan defaults. It also provides an analysis of the bank's loan portfolio, classified loans, profits, and a SWOT analysis. The overall aim is to analyze credit risk management practices at the branch.
This report analyzes the financial statements of Commercial Bank of Ceylon Plc for the 2011/2012 fiscal year. Ratio analysis was used to measure the bank's profitability, liquidity, and market performance. The bank had an excellent 2012 fiscal year, with assets exceeding Rs. 500 billion and post-tax profits reaching Rs. 10 billion. Key ratios such as return on assets and equity improved from the previous year, indicating better profitability and efficiency. The bank was also able to maintain strong liquidity and dividend payments for shareholders. In conclusion, the analysis found that Commercial Bank of Ceylon Plc continues to be a sound investment for existing and prospective shareholders.
Brac sme banking activitis letter of transmittalWINNERbd.it
This internship report summarizes the Small and Medium Enterprise (SME) banking activities of BRAC Bank Limited. It discusses BRAC Bank's SME division and loan products, including eligibility criteria. The report also analyzes SME loan repayment behavior based on borrower characteristics like age, education, loan amount. Additionally, it provides a comparative analysis of SME loan schemes across six major banks in Bangladesh and identifies strengths, weaknesses, opportunities and threats for BRAC Bank's SME division.
This document discusses credit appraisal, which refers to assessing a borrower's creditworthiness or ability to repay debt. It explains that banks conduct thorough analyses using financial ratios, risk evaluations, and other concepts to judge if a borrower poses default risk. The key aspects banks examine include the loan reason, company finances/history, management, market conditions, and ability to meet obligations. Effective appraisals benefit both banks and firms. Banks ensure loan safety while firms can more easily obtain financing. The document also outlines various stages in the appraisal process like feasibility studies and investment phases to thoroughly evaluate creditworthiness over time like a project cycle.
An Internship report on Evaluation of Credit Risk managementSohag Jafrul
Vice Chairman
Managing Director
Deputy Managing Director
Senior Executive Vice President
Executive Vice President
Senior Vice President
Vice President
Senior Assistant Vice President
First Assistant Vice President
Assistant Vice President
Senior Principal Officer
Principal Officer
Senior Executive Officer
Executive Officer
Senior Officer
Officer
Junior Officer
Trainee Assistant Officer
2.9 Organization Structure:
The organizational structure of Southeast Bank Limited is divided into two broad categories:
1. Head Office
2. Branches
Head Office:
The head office is located in Dhaka. All policy decisions, planning & development, monitoring &
General banking activities of agrani bank , internship report, aiub by sudipt...Sudipta Saha
The document is a letter of transmittal from Sudipta Saha submitting their final internship report on the general banking activities of Agrani Bank Ltd. to Mr. R Tareque Moudud of American International University-Bangladesh. Sudipta Saha completed a 3-month internship at Agrani Bank Ltd.'s Wasa corporate branch. The letter states that the report aims to comprehensively include all relevant information and analysis, and meet the university's standards. Sudipta Saha requests that the report be accepted and acknowledges their efforts in preparing it.
This document analyzes the financial performance of Janata Bank from 2009-2013. It finds that the bank's current ratio fluctuated around 1, while its debt ratio decreased from 95.28% to 93.67% over this period. The bank's return on assets increased from 1% to 1.42% except in 2012 when it was -3.5%. The study recommends that Janata Bank reduce operating costs to decrease its cost to income ratio and reconsider its capital structure to lower debt levels.
This document provides an acknowledgement, declaration, contents list, and introduction for a study on credit risk management at Syndicate Bank. The study was conducted in partial fulfillment of an MBA degree from Osmania University between 2009-2011. It acknowledges the support provided by the college principal, head of department, college lecturers, and an employee from Syndicate Bank. The declaration confirms the work is original and was conducted under the guidance of an external project guide.
This document appears to be a summer training project report submitted for a Post Graduate Diploma in Management program. The report focuses on credit appraisal for business loans. It includes an executive summary that provides an overview of factors considered in credit appraisal like credit history and financial guarantees. It also discusses the importance of credit for banks and associated risks. The report aims to understand various technical aspects of appraising loans to business units and projects, including assessing working capital and term loans. It will also cover non-performing assets and debt restructuring.
This document is a project report submitted by P. Pavithra in partial fulfillment of the requirements for a Master of Business Administration degree from Saveetha School of Management. The project focuses on credit risk management at State Bank of India's Park Town branch. It includes a certificate verifying the project as Pavithra's original work. It also includes an acknowledgment, declaration, abstract, and table of contents sections.
1. The document discusses the various types of credit facilities sanctioned by banks including fund based facilities like cash credit, term loans, etc. and non-fund based facilities like letters of credit and guarantees.
2. It provides details on the credit appraisal process undertaken by banks which involves collecting documents from applicants, conducting risk ratings, verification checks, site visits and analysis of viability before sanctioning loans.
3. The key aspects of credit appraisal covered are the different types of loans, the process flow from application to sanction, checks and validations performed.
This document is an internship report submitted by Sana Ahmed for her internship at Burj Bank. The report includes an introduction, acknowledgements, abstract, executive summary and several chapters. Chapter 1 provides background on the internship and study. Chapter 2 introduces banking in Pakistan and provides details on Burj Bank, including its vision, mission and organizational structure. Chapter 3 discusses Burj Bank's products, services and departments. The report also includes a SWOT analysis and conclusions.
Internship report on capital market exposure of brac bankWINNERbd.it
This document is an internship report submitted by Rumpa Saha to BRAC Business School at BRAC University. The report focuses on analyzing the capital market exposure of BRAC Bank Limited over a three month internship period from January to April 2012. Some key points:
- BRAC Bank is one of the fastest growing banks in Bangladesh with over 150 branches and aims to assist in building an enlightened, just and poverty-free Bangladesh.
- The report provides an overview of BRAC Bank, its vision and values. It also details the shareholding structure and board of directors.
- The objectives are to understand BRAC Bank's capital market investment procedures, regulations from Bangladesh Bank, and analyze
This internship report provides an overview of BRAC Bank Limited's SME Banking Division. It discusses BRAC Bank's history and growth, including establishing over 300 SME unit offices across Bangladesh. The report also outlines some of BRAC Bank's major products and services, with a focus on its wide range of retail and SME loan offerings. Challenges facing BRAC Bank's SME division are analyzed, such as high interest rates, defaulter rates, and risks associated with the SME sector. The report provides insights into BRAC Bank's efforts to reduce credit risk and deal with defaulters through strict loan approval processes and a specialized recovery wing.
Agrani Bank Limited is a nationalized commercial bank in Bangladesh that was formed in 1972 by taking over assets and liabilities of two other banks. It has over 900 branches throughout Bangladesh and overseas. [The bank's vision is to provide banking services to the masses to support Bangladesh's economic growth. Its mission is to be an innovative leader in performance and customer service. The bank aims to serve customers and earn profits while supporting Bangladesh's economy and entrepreneurs.]
PRESENTATION ON FINANCIAL STATEMENT ON THE BASIS OF A...Naymul Islam Hemel
The document discusses the presentation of a financial statement for BRAC Bank based on its annual report. It provides an overview of BRAC Bank, including that it was established in 2001 to provide services to small and medium enterprises. It also outlines the bank's distribution network including 157 branches and over 350 ATMs. The document then analyzes BRAC Bank's financial reporting practices, finding that it discloses general information, adheres to accounting standards, and ensures uniformity in its financial statements and measurements. However, it does not disclose some contingent losses or use of reserves.
The document provides an overview of project financing and Union Bank of India. It discusses how project financing is used to fund large infrastructure projects and is emerging as a preferred alternative to conventional financing. It also provides details on Union Bank of India such as its establishment, services offered, branches, technology initiatives and rankings. The document outlines the steps involved in project financing at Union Bank including conducting feasibility studies, assessing financial health, determining credit ratings, fixing interest rates and sanctioning and disbursing loans. Conducting in-depth feasibility studies of the technical, market and organizational aspects of a proposed project is a key part of the process.
Credit risk management practice in eastern bank limitedSyed Fazle Imam
- The document provides background information on Credit Risk Management practices at Eastern Bank Limited's Gulshan branch in Bangladesh.
- It discusses the objectives, scope, sources of data/methodology, and limitations of studying EBL's credit risk management procedures for SME loans.
- EBL was formed in 1992 after taking over branches of the former Bank of Credit and Commerce International in Bangladesh. It has grown significantly in recent years through strategic changes, new technology/products, and a focus on both wholesale and retail banking.
The document discusses performance evaluation of 10 private commercial banks in Bangladesh using various financial ratios. It provides background on the banking sector and objectives of the study. The study analyzes 2 years of data for profit ratios including return on equity (ROE), return on assets, net interest margin and earnings per share for banks like AB Bank, Bank Asia and Brac Bank. It finds that based on ROE, Bank Asia showed better performance in 2009 than 2008, while Brac Bank performed better in 2008. The document also provides details on the functions of Bangladesh Bank and overview of the selected private banks.
Report on financial performance measurement for financial year 2011.acc101manikmolla
This report analyzes the financial performance of Brac Bank Limited in Bangladesh for the financial year 2011 using various methods and tools. It applies horizontal analysis, vertical analysis and ratio analysis to the bank's balance sheet, profit and loss account, and cash flow statement for 2011 and compares the results to industry averages and other banks. The analysis finds that Brac Bank's financial condition changed over the year based on comparisons within the company and between it and its competitors. Various ratios are also calculated to assess the bank's financial position. The report was prepared by a group of students for an assignment.
CAMELS MODEL Analysis on Banking Sector.Ranga Nathan
The document discusses CAMELS ratings which are used to assess the overall condition of banks. The CAMELS acronym refers to six components evaluated: Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk. Ratings are assigned on a scale of 1 to 5 with 1-2 indicating few supervisory concerns and 3-5 indicating increasing supervisory concerns. The document then provides details on the components of CAMELS ratings and analyzes four Indian banks based on their capital adequacy ratios.
This document provides a summary of a report on the off-site supervision practices of Bangladesh Bank. It begins with an introduction that describes the focus on CAMELS ratings and outlines the report's structure. The objectives are then presented, which are to understand the functions of the Department of Off-site Supervision, the supervision system and tools, the CAMELS rating procedure and reporting, and limitations. The methodology and sources of data are also summarized. The report aims to provide insight into Bangladesh Bank's off-site supervision process with a focus on CAMELS ratings to assess banks' conditions.
This document is a thesis on liquidity management at Bank Al-Sharq in Syria. It begins with an introduction and acknowledgments. It then provides an abstract that outlines studying liquidity management procedures at Bank Al-Sharq when liquidity ratios fall below authorized limits, and the impact on bank profitability. The document also contains chapters on liquidity management in traditional banks, liquidity risks, the role of Syria's Central Bank in regulating liquidity ratios, and a specific analysis of liquidity management at Bank Al-Sharq. It concludes with recommendations for improving liquidity management and increasing profitability.
This document provides an executive summary of a master's project analyzing the nexus between water, energy, and food security in developing countries. The project examines these issues for Ethiopia, Timor-Leste, Sri Lanka, and Cambodia. It finds that these countries face challenges of lack of access to affordable energy and electricity, dependence on fossil fuels, limited and contaminated water resources, and vulnerability of food security to climate variability impacts on water and energy. The project conducted country case studies and developed recommendations to build capacity for integrated improvement of the food, water, and energy sectors through sustainable solutions that meet development needs.
This thesis examines the potential economic impacts of a proposed Colorado River Compact Water Bank. The water bank aims to transfer water from pre-Compact irrigators on Colorado's western slope to municipalities if a compact curtailment occurs. Using IMPLAN input-output modeling, the author analyzes three scenarios to estimate the indirect effects of fallowing irrigated acreage in Montrose County, and the potential offsetting impacts of a lease payment program. The results could inform local stakeholders and regional planners about how such a water transfer and payment program might indirectly impact the local economy. The thesis reviews relevant water law and literature on secondary economic effects of water transfers to provide context.
A terrific analysis about the growing racialization of food bank use in the greater Toronto area - with serious negative implications for the effort at building real racial equity, racial justice across the province of Ontario Canada.
"Credit Performance of a Branch for Export Import Bank Bangladesh Limited,’Md. Sabbir Ali
The document provides an overview and background of Export Import Bank of Bangladesh Limited (EXIM Bank). It discusses the bank's functions, organizational structure, management, branches, and strategic goals. EXIM Bank was established in 1999 and initially operated as a conventional bank before migrating to an Islamic banking model in 2004. The document outlines the bank's mission to provide superior customer service and contribute to the national economy through ethical and transparent practices. It also presents details on the bank's capital structure, credit ratings, and board of directors to provide context on the organization.
This internship report evaluates the business loan process of National Bank Limited's Elephant Road branch in Dhaka, Bangladesh. It was prepared by Mahabub Alam, an intern at the bank, as part of his BBA degree program at Daffodil International University. The report assesses the bank's business loan procedures, terms, recovery activities, and existing business loan portfolio. It aims to provide insight into the bank's business loan operations and performance.
This document is a summer project report submitted by Sadish Karki to Uniglobe College in partial fulfillment of a Bachelor of Business Administration degree. The report evaluates the performance of commercial banks in Nepal using the CAMEL rating system. CAMEL stands for Capital Adequacy, Asset Quality, Management Efficiency, Earnings Quality, and Liquidity. The report analyzes 18 financial ratios to evaluate banks based on these 5 parameters. The findings show that while bank performance was generally satisfactory, some banks needed improvement in certain areas. Standard Chartered Bank was found to have the best overall performance based on CAMEL ratings.
This thesis examines the capital adequacy norms set by Nepal Rastra Bank (NRB) for commercial banks in Nepal and their impact on Bank of Kathmandu Ltd (BOK) and Himalayan Bank Ltd (HBL). The thesis presents data on the capital funds, risk-weighted assets, deposits, and credits of BOK and HBL. It analyzes capital adequacy ratios, capital to deposit ratios, and credit to deposit ratios. Correlation coefficients and hypothesis testing are used to statistically analyze the relationship between capital funds and deposits/credits. The findings suggest the NRB capital adequacy norms have impacted the capital funds of BOK and HBL.
Review on Research paper 'Determinants of Financial Performance of Commercial...Saumya Singh
This study examined the determinants of financial performance of commercial banks in Kenya from 2001-2010. It found that bank-specific factors like capital adequacy, asset quality, and management efficiency significantly impacted performance measures like return on assets and equity. However, liquidity and macroeconomic variables did not have significant effects. Additionally, the study found that ownership structure (domestic vs. foreign banks) did not moderate financial performance. Thus, internal bank management decisions were more important determinants of performance than external macroeconomic conditions.
After the Liberation War and the eventual independence of Bangladesh, the Government of Bangladesh reorganized the Dhaka branch of the State Bank of Pakistan as the central bank of the country, naming it Bangladesh Bank. This reorganization was done pursuant to Bangladesh Bank Order, 1972, and the Bangladesh Bank came into existence retroactively from 16 December 1971.
Role of credit rating in the banking sector after introduction of basel ii re...Md. Shahinuzzaman
Abstract: Credit Rating Agencies (CRAs) play a key role in financial markets by helping to reduce the informative asymmetry between lenders and investors, on one side, and issuers on the other side, about the creditworthiness of companies or countries. CRAs' role has expanded with financial globalization and has received an additional boost from Basel II which incorporates the ratings of CRAs into the rules for setting weights for credit risk. Ratings tend to be sticky, lagging markets, and overreact when they do change. This overreaction may have aggravated financial crises in the recent past, contributing to financial instability and cross-country contagion.
The recent bankruptcies of Enron, WorldCom, and Parmalat have prompted legislative scrutiny of the agencies. Criticism has been especially directed towards the high degree of concentration of the industry. Promotion of competition may require policy action at national and international level to encourage the establishment of new agencies and to channel business generated by new regulatory requirements in their direction.
Financial regulators recognize certain credit rating agencies for regulatory purposes. However, it is often argued that credit rating agencies have an incentive to assign inflated ratings. This paper studies the Role of Credit Rating in the Banking Sector after Introduction of Basel II Regulation- A Review on Bangladesh. Credit rating agencies may collude to assign inflated ratings. Yet it is showing that there exists vast role which induces credit rating agencies to assign correct ratings.
Keywords: Credit Rating (CR), Credit Rating Agency (CRA), Basel II, WASO credit Rating Co. (BD) Ltd., Credit Risk, Standard Approach.
Assessment of performance of public sector banks under camel frameworkHIMANI PADIA
This document provides an overview of the banking system in India and discusses performance evaluation methods. It begins with an introduction to the important role of banks in economies and the need to regularly assess bank performance. The CAMEL model is then introduced as a commonly used framework to evaluate the capital adequacy, asset quality, management, earnings, and liquidity of financial institutions. The history and development of the CAMEL framework is outlined, noting its origins in the US and adoption by other international organizations. Previous studies that have applied the CAMEL model to analyze various banks are also summarized. The chapter concludes by profiling the banking industry and landscape in India.
This document provides an assessment of value added tax (VAT) administration practices in Yirgalem town, Ethiopia from 2004-2006. It was submitted by Abraham Sewnet to fulfill requirements for a B.A. degree in accounting and finance from Hawassa University. The study focuses on identifying challenges in VAT administration and compliance from the perspectives of taxpayers and tax authorities. Literature on VAT is reviewed, including definitions, types of VAT, terminology, and theoretical frameworks. The study aims to assess factors creating administrative problems, compliance with rules and regulations, major issues in VAT collection, and impacts on prices and customer behavior. It is intended to assist policymakers and taxpayers in understanding VAT and improving the system.
An internship report on evaluation of credit risk managementSohag Jafrul
Vice Chairman
Managing Director
Deputy Managing Director
Senior Executive Vice President
Executive Vice President
Senior Vice President
Vice President
Senior Assistant Vice President
First Assistant Vice President
Assistant Vice President
Senior Principal Officer
Principal Officer
Senior Executive Officer
Executive Officer
Senior Officer
Officer
Junior Officer
Trainee Assistant Officer
2.9 Organization Structure:
The organizational structure of Southeast Bank Limited is divided into two broad categories:
1. Head Office
2. Branches
Head Office:
The head office is located in Dhaka. All policy decisions, planning & development, monitoring &
This document provides information about an internship report submitted by Nishat Tasnim to their supervisor Ummahani Akter on the credit risk management system of National Bank Limited. The report includes an introduction, organization profile of National Bank Limited, analysis of their financial performance from 2011-2015, overview of credit risk and its management, and National Bank Limited's approach to credit risk management. It also discusses their credit policy, risk assessment process, credit approval process, monitoring, and recovery. The document aims to analyze National Bank Limited's credit risk management system based on information from their website and annual reports.
This report summarizes the credit risk management system of National Bank Limited (NBL) in Bangladesh. It provides background on NBL, including its vision, mission, management structure, products and financial performance from 2011-2015. The report then discusses credit risk and NBL's credit risk management policies, including its credit guidelines, risk assessment process, credit approval process, and credit recovery procedures. It analyzes NBL's credit portfolio mix and risk management strategies. Finally, the report provides recommendations to strengthen NBL's credit risk management and concludes with key findings.
This document provides an internship report on the credit risk management of Best Capital Services Limited in Jaipur, India. It begins with an acknowledgment section thanking various individuals and organizations for their support and contributions. It then includes an executive summary that overviews the report's objectives, methodology, findings on the company's credit processes and risk management procedures, and recommendations. The document also contains sections on the organization's profile, credit risk management principles and tools, an analysis of the company's loan portfolio, and a SWOT analysis. In under 3 sentences, this internship report examines the credit risk management practices of an Indian financial services company and provides recommendations based on the author's analysis during their internship.
The document provides an overview of Jamuna Bank Limited (JBL), including its background, objectives, organizational analysis, and methodology. Some key points:
- JBL is a private commercial bank established in 2001 in Bangladesh to provide modern banking services. It has grown to 77 branches across the country.
- The bank aims to play a role in Bangladesh's economic development through offering customer-centric services and responsible lending.
- The report examines JBL's financial performance, credit approval processes, and challenges in order to understand how it operates and achieves its objectives.
- Both primary data collected from employee and customer interviews and secondary sources like reports and the bank's website are used in the analysis.
The study is to analyze the credit management-A Study on Prime Bank Ltd.Ariful Saimon
INTERNSHIP REPORT
ON
The study is to analyze the credit management
A Study on Prime Bank Ltd
PREPARED FOR
Mr.Rajib Datta
Assistant Professor
Department Of Finance
Faculty of Business Administration
Premier University
Chittagong
PREPARED BY
Md Ariful Islam Saimon Chowdhury
ID. No: 150-22080-2147
Section: A
Major: Finance
Batch: 22nd
MBA Program
Premier University
Date of Submission: 11/05/2017
Sarah Alam, a student of MBA, ID; 14164019 has completed internship report on “Deposit Analysis of Mercantile Bank Ltd.” as a partial requirement for obtaining MBA degree. I have read the report and found that it meets the standard of MBA internship reports Sarah Alam has completed the report by herself under my supervision
Competitive advantage By Bangladesh Commerce Bank LtdAsad Saimon
Bangladesh Commerce Bank Ltd incorporated in Bangladesh on 1 June 1998 as a banking company, it started banking operations on 16 September 1999 with an authorized and paid up capital of Tk 2,000 million and Tk 920 million respectively.
Analysis of Deposit Schemes and Investment Mode of Pubali Bankakashcreation
This document provides an overview of an internship report submitted by Bristi Dey Joya to fulfill the requirements of a Bachelor of Business Administration degree. The report analyzes the deposit schemes and investment modes of Pubali Bank Limited's Chakbazar branch in Chattogram. The summary includes an introduction to Pubali Bank, acknowledgments, table of contents, and outlines of each chapter. Key points covered are the bank's background, management structure, vision and mission, financial position, literature review on deposit management and investment policies, theoretical aspects of PBL's deposit schemes and investment modes, and analysis of deposit schemes and investments at the Chakbazar branch.
Term Paper on Evaluation of Credit Assessment & Risk Grading Management Of ...Janibul Haque
The document appears to be a term paper evaluating the credit assessment and risk grading management of Dutch Bangla Bank Ltd. It includes an introduction, statement of the problem, purpose of the study, objectives of the study, and literature review. The methodology section describes using questionnaires with bank employees and collecting both primary and secondary data. Limitations included confidentiality concerns and time constraints. Qualitative analysis found most officers cited Credit Rating Agency of Bangladesh as the credit rating agency used and that factory visits are usually conducted before loan approval.
This document summarizes a student internship report on Basic Bank Limited and the Hallmark scam. It includes an introduction outlining the purpose and scope of the report. The student collected data through both primary research during their internship at Basic Bank and secondary sources such as annual reports and newspaper articles. The report provides background on Basic Bank's operations, including foreign exchange, credit management, and the procedures involved. It also examines the Hallmark scam that occurred, its impact on the economy, and changes in banking regulation as a result. The summary aims to analyze banking practices and identify any shortcomings that contributed to the Hallmark scam.
internship report on credit managementKhaled Masud
This internship report analyzes the credit management activities of Mercantile Bank Limited (MBL) in Bangladesh over a five year period from 2010-2014. It includes an analysis of MBL's deposit growth and composition, loans and advances by sector, investment activities, key financial ratios like loan deposit ratio and return on investment. The report finds that while MBL has grown its deposit base significantly, it faces challenges in managing non-performing loans and needs to improve some of its financial ratios. The conclusion provides recommendations to help MBL strengthen its credit risk management and further improve its performance.
This internship report summarizes Rafiqul Islam's 3-month internship at the Gulshan branch of Al-Arafah Islami Bank Limited (AIBL) in Bangladesh, focusing on the bank's investment management activities. The report includes an executive summary of AIBL's background, operations, investment sectors, products, procedures, criteria for evaluating investment proposals, causes of loan defaults, and monitoring and recovery processes. It aims to provide an overview of AIBL's investment management and identify strengths, weaknesses, and risks. The report is based on both primary data collected from bank officers and secondary sources such as AIBL publications.
This internship report summarizes Rafiqul Islam's 3-month internship at the Gulshan branch of Al-Arafah Islami Bank Limited (AIBL) in Bangladesh, focusing on the bank's investment management activities. The report includes an executive summary of AIBL's background, operations, investment sectors, products, procedures, criteria for evaluating investment proposals, causes of loan defaults, and monitoring and recovery processes. It aims to provide an overview of AIBL's investment management and identify strengths, weaknesses, and risks. The report is based on both primary data collected from bank officers and secondary sources such as AIBL publications.
This document provides an overview and background of risk management practices at Janata Bank Limited (JBL) in Bangladesh. It discusses JBL's organizational structure, products/services, and risk management guidelines. The objectives of the report are to evaluate JBL's risk management framework, identify the types of risks it faces, and provide recommendations. Data will be collected through interviews and file reviews during a 3-month internship at JBL's Chawk Bazar branch. The report will analyze JBL's risk identification, mitigation and reporting processes, and assess whether its risk management system is effective. Limitations include lack of access to all internal data and quantitative analysis experience.
Prime Bank Limited is a private commercial bank in Bangladesh that was established in 1995. The report provides an overview of Prime Bank, including its vision, mission, management structure, departments, products, and financial performance. It also discusses the general banking activities and operations of the bank's Dhanmondi branch.
This document discusses credit risk management practices in Bangladeshi banks. It notes that traditionally banks emphasized collateral but now focus more on measuring business risk. Banks are now adopting more sophisticated credit risk assessment techniques using financial analysis to better evaluate borrowers. Guidelines from Bangladesh Bank aim to improve risk management culture and establish standards for credit risk assessment, approval processes, monitoring, and recovery. The document analyzes the evolution of practices from an initial focus on traditional analysis to introducing more formal risk analysis techniques like Lending Risk Analysis and the current Credit Risk Grading system.
This document discusses credit risk management and performance of private commercial banks in Bangladesh. It analyzes data from three banks - United Commercial Bank, Southeast Bank, and Standard Bank - to evaluate how credit risk management impacts bank profitability. Key variables examined include asset quality, non-performing assets, total investments to total assets, return on assets, and profit margin ratio. Regression analysis revealed credit risk management has a significant effect on the profits of private commercial banks in Bangladesh, with profitability dependent on return on assets and inversely related to credit risk. The document aims to investigate credit risk practices and their influence on bank performance.
This document is an internship report submitted by Sabiha Akter to analyze the credit risk management of Shimanto Bank Ltd. It contains 5 chapters that discuss the introduction, company overview, conceptual framework, analysis, and findings. The report aims to evaluate Shimanto Bank's credit risk management performance using various ratios and trend analysis related to credit risk. It provides an overview of the bank's vision, mission, products, and credit risk grading system. The analysis chapter contains calculations of financial leverage, capital adequacy ratio, classified loans, and other metrics to assess the bank's credit risk management. Overall, the report analyzes Shimanto Bank's credit risk management policies and practices.
Credit Analysis and Risk Management of Standard Bank LimitedAriful Saimon
An Internship Report
On
“Credit Analysis and Risk Management of Standard Bank Limited”
Submitted to:
Mrs. Tanbina Tabassum
Assistant Professor
Department of Finance
Faculty of Business Studies
Premier University, Chittagong.
Submitted by:
Md. Shahadat Hossain
ID: 1502220802160
Major: Finance
Program: MBA (1 year), Batch: 22nd
Premier University
Date of Submission:
This presentation summarizes an internship report evaluating the credit management performance of NCC Bank Limited's Madambibirhat branch. The objectives were to examine the bank's credit policies, authorities, sector-wise and mode-wise credit disbursement, recovery position, risk management process, and problems. Based on the analysis, recommendations were provided to diversify credit sectors, improve data collection and record keeping, and enhance risk management and recovery processes. In conclusion, the report found that while NCC Bank plays an important economic role, it needs more competitive strategies and policies to improve performance.
The document provides an overview of Southeast Bank Limited, including its vision, missions, core values, strengths, competencies, business objectives, and commitments to clients. It then describes the bank's operational areas, departments, and organizational structure. The remainder of the document outlines the bank's credit management policies and procedures, including categories of loans, lending guidelines, the lending process from application to disbursement, the use of security, credit risk management, and risk grading system.
The document outlines the contents of an internship report on National Bank Ltd. The report contains 8 chapters that cover: an introduction to NBL including its history, vision, and organizational structure; an appraisal of NBL's performance; general banking activities; services offered; foreign exchange activities; daily bank operations; other activities; and recommendations and conclusions. The methodology used primary and secondary data collection including observation, interviews, and a review of bank documents and financial statements. The objectives are to provide an overview of NBL and assess its financial performance, identify issues, and recommend improvements.
The document is an internship report submitted by Mr. Md. Tawfique Hossain to his lecturer Ms. Tasneema Afrin on his internship at the corporate branch of Bank Asia Limited, where he learned about the bank's foreign trade activities including letters of credit, import and export procedures, and foreign remittance. It includes an acknowledgement of those who helped him, an executive summary of the report's contents, and details of the bank's history, vision, products, and the employee structure at the corporate branch.
This document provides an overview of Prime Bank Limited in Bangladesh. It states that Prime Bank Limited is a scheduled commercial bank established in 1995. It has grown to 37 branches across Bangladesh. The bank focuses on understanding customer needs and offers various corporate and personal banking services. It discusses Prime Bank's financial performance in recent years, including operating profits and capital levels. Overall, the document provides high-level information about Prime Bank Limited's history, services, and financial standing.
The document is an internship report submitted by Reazul Islam (Mobin) to his lecturer Mr. Abdul Alim Baser at BRAC Business School evaluating the foreign exchange performance and profitability of The Trust Bank Limited (TBL) based on a 3-month internship. The summary analyzes TBL's foreign exchange activities including import, export, and remittance processes and evaluates their contribution to the bank's profitability. It also acknowledges those who helped and guided the author during the internship period.
This internship report analyzes the financial performance of Navana CNG Limited from 2007 to 2011. It includes a declaration by the intern, a certificate from the internship supervisor, an executive summary of the company's operations and financial status, and acknowledgments. The report's objectives are to analyze Navana CNG's financial statements and calculate key financial ratios to understand the company's current financial position and identify findings and recommendations. It uses ratio analysis and trend analysis of primary and secondary data sources such as annual reports and discussions with company officers.
Janata Bank Limited is a state-owned commercial bank in Bangladesh with over 800 branches. This report analyzes Janata Bank's foreign exchange performance, including its processing of remittances from non-resident Bangladeshis, opening of letters of credit, and management of export, import and foreign exchange. It finds that while Janata Bank contributes significantly to Bangladesh's national remittance earnings, its performance has not increased at the same rate as the national trend. The report recommends structural changes to help Janata Bank better cope with national trends and maximize foreign exchange for Bangladesh.
This document provides an internship report on the operations evaluation and credit management of Dutch-Bangla Bank Limited (DBBL). It includes an acknowledgement, executive summary, table of contents, and the beginning of several chapters. The introduction provides background on the origin of the report for an internship at DBBL. It outlines the objectives to evaluate DBBL's business operations and financial performance, understand customer service and credit facilities. Information was collected from primary sources like employee interviews and secondary sources like annual reports and publications. The methodology included selecting a topic, identifying and collecting data, analyzing and presenting findings. The early chapters will provide an overview of DBBL's history, organizational structure, resources, financial highlights and corporate social responsibility activities.
The document is an internship report submitted by Annira Amin to her supervisor at Independent University, Bangladesh. The report focuses on Advance and Foreign Remittance Services provided by National Credit and Commerce Bank Limited (NCCBL). It includes an executive summary highlighting the importance of remittances to Bangladesh's economy and NCCBL's role in facilitating remittance inflows. The report also contains sections on NCCBL's organizational background, credit management procedures, analysis of loan performance, overview of foreign remittance processes handled by NCCBL, and recommendations.
This document outlines an internship report proposal on sustainable financial inclusion and poverty alleviation through smart banking at Bank Asia Ltd. The proposal includes an introduction to the study, literature review, rationale, background of Bank Asia, objectives, methodology, limitations and bibliography. Specifically, it aims to assess financial inclusion modules, identify challenges for Bank Asia, explore poverty elimination, analyze Bank Asia's performance, and make recommendations to improve alternative delivery channels. The research will use both primary data from bank observations and secondary data from annual reports and websites.
This document provides an internship report on Bank Alfalah Limited written by Muhammad Rashid Badar. It includes an introduction to banking history and Bank Alfalah. The report outlines the bank's mission, vision, objectives, organizational structure, performance, departments, products and services, and financial analysis. It also includes a SWOT analysis and recommendations. The high-level summary is:
Bank Alfalah is a private bank providing various financial services through 321 branches across Pakistan and internationally. The report details the bank's strategies, departments including account opening, car financing, remittances, credits, and trade finance. It analyzes the bank's financial performance and identifies strengths, weaknesses, opportunities and threats in a
This document provides information about Uttara Bank Limited (UBL), including:
1) A brief history and background of UBL establishing it as one of the largest private banks in Bangladesh.
2) An overview of UBL's objectives, products, services, vision, mission and organizational structure.
3) An explanation that the report will focus on analyzing UBL's general banking system.
Uttara Bank Limited is one of the largest and oldest private commercial banks in Bangladesh. It has over 220 branches in Bangladesh and 600 affiliates worldwide. The document outlines Uttara Bank's objectives, goals, vision and mission which center around serving customers, the economy, and the country. It also describes the key functions of Uttara Bank's general banking department including account opening, deposits, checks, remittances, cash operations, and clearing processes. In conclusion, the document notes Uttara Bank's strong reputation and leadership in the Bangladeshi banking sector due to its large network, experienced staff, and introduction of new products and services.
The document provides acknowledgements and thanks for those who contributed to the completion of an internship report on the general banking activities of National Bank Limited's Mohakhali branch. It thanks the course instructor, almighty, and others for their guidance and support during the internship and report preparation. It expresses that the intern enjoyed preparing the report and presenting it for review.
The document provides background information on National Commerce and Credit Bank Ltd (NCCBL) in Bangladesh. It discusses NCCBL's history, organizational structure, products/services, branches, board of directors, and financial performance. During his internship at NCCBL's Banani branch, the author helped with various general banking activities like opening accounts, processing payments/deposits, providing account balances and closures. He also assisted with other administrative tasks such as file/document arrangement. The objective of the internship was to gain practical banking experience and apply academic knowledge.
This document provides an overview of National Bank Limited (NBL), Bangladesh's first private sector commercial bank. It discusses NBL's history, mission, vision, strategic priorities, core values, and organizational structure. The document also describes NBL's capital structure, training institute, and various departments. Key points include:
- NBL was established in 1983 as Bangladesh's first privately-owned commercial bank. It has since expanded to over 100 branches across Bangladesh.
- NBL's mission is to provide transparent and accountable financial services to customers while contributing to Bangladesh's economy. Its vision is to establish itself as a leading bank through technology and customer service.
- The bank has a three-tier organizational structure headed
This document provides an internship report submitted by Md. Mahfujar Rahman to fulfill the requirements of the BBA program at Uttara University. The report details Mahfujar's 3-month internship at the Tongi branch of NCC Bank Ltd, where he gained exposure and experience in the bank's general banking, loans, and remittance departments. The report includes an introduction, literature review on banking history and the banking sector in Bangladesh, an overview of NCC Bank including its management structure and products/services, an analysis of the bank's performance, and findings and recommendations from the internship.
The document provides details about Agrani Bank Limited (ABL), a state-owned commercial bank in Bangladesh. It discusses ABL's establishment in 1972 through the merger of two other banks. It notes that ABL has an authorized capital of 800 million taka and paid-up capital of 248 million taka, with total equity of 725 million taka as of 2010. ABL has over 867 branches across Bangladesh, including 10 corporate branches, 341 town branches, and 526 rural branches. The document also gives an overview of ABL's management and board of directors.
This document provides information about an internship report submitted by Md. Abdul Hadi to analyze the general banking activities of Janata Bank Limited's Mirpur Corporate Branch in Dhaka, Bangladesh. The report includes an introduction, company profile of Janata Bank, and analysis of general banking activities like deposits, loans, remittances, account opening/closing procedures. It aims to identify issues and provide recommendations to improve services based on the internship experience.
Mutual Trust Bank Limited (MTBL) was incorporated in 1999 and started its banking operations later that year. It has grown to have 73 branches across Bangladesh. The report discusses MTBL's mission, vision, products/services, organizational structure, management, and culture. It also provides an overview of the bank's Panthapath branch where the author completed their internship and learned about general banking activities like account opening, cheque processing, clearing, and cash operations.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
Film vocab for eal 3 students: Australia the movie
13703758928131 080061
1. Page 1 of 39
Internship Report
‘Credit Risk Management of BRAC Bank Limited’
Prepared By:
Exam Roll: 080061
2. Page 2 of 39
Internship Report on
‘Credit Risk Management of BRAC Bank Limited’
Prepared For:
Chairman
Internship Placement Committee
Prepared By:
Exam Roll Number: 080061
Class ID: 787
4th
year, 8th
semester
Batch No.: 17th, BBA Program
Academic Session: 2007-08
Institute of Business Administration (IBA-JU)
Jahangirnagar University, Savar, Dhaka.-1342
April 30, 2012.
3. Page 3 of 39
April 30, 2012
Chairman
Internship Placement Committee
BBA Program
Institute of Business Administration
Jahangirnagar University
Savar, Dhaka- 1342
Subject: Submission of Internship Report on ‘Credit Risk Management of BRAC Bank
Limited’.
Dear Sir
With due respect, I would like to submit my internship report on “Credit Risk Management of BRAC
Bank Limited” assigned by BRAC Bank Limited under your guidance to fulfill the requirement of the
internship program of BBA program. It has been a worthwhile experience for me undertaking such a
report work to get exposure to the real life of a banking organization. I am grateful for your guidelines
and directions. I tried to put my best effort for the preparation of this report.
Hereby, I hope that you would be kind and generous enough to accept my sincere effort and oblige
thereby. It will be my pleasure to answer any clarification regarding this report.
Sincerely yours
Exam Roll Number: 080061
Class ID: 787
4th Year, 8th Semester
Batch No: 17th, BBA Program
Academic Session: 2007-08
4. Page 4 of 39
ACKNOWLEDGEMENT
First and foremost, I would like to express my deep gratitude to the almighty Allah for helping me to
complete the report within the due time and without any major tribulations.
I would like to express heartiest gratitude to my academic supervisor Mr. Md. Alamgir Hossen for his
important suggestions, excellent guidelines and supervisions for preparing this internship report on
“Credit Risk Management of BRAC Bank Limited”. I would also like to express my heartiest
gratitude to Mr. Md. Golam Mawla, CSM, Moghbazar Branch, BRAC Bank Limited for his kind
concern and consideration regarding my academic requirements as my external supervisor.Also I
express special gratitude to all the other employees of Moghbazar branch of BRAC Bank Limited
who have shared their knowledge regarding banking with me.
Finally, I would like to convey my gratitude to my parents, teachers, friends and many others who
extend their support to prepare the report.
5. Page 5 of 39
Table of Contents
Topic’s
Headline
Topic’s Title Page
Executive Summary 9
Part One Introductory Part 10
Chapter 1.0 Introduction of Report 11
1.1 Introduction of the Report 11
1.2 Origin of the Report 11
1.3 Rational of the Report 11
1.4 Objective of the Report 11
1.5 Scope of the Report 12
1.5 Methodology 12
1.7 Limitations 12
1.8 Structure of the Report 12
Part Two Organization Part 13
Chap 2.0 Overview of BRAC Bank Limited 14
2.1.Company Profile 14
2.2.Human Resource 14
2.3.CRAB Rating 14
6. Page 6 of 39
2.4 Mobilization of Fund 14
Part Three Project Part 16
Chap 3.0 Credit Risk Management Practice of BRAC Bank Limited 17
3.1 Overview 18
3.2 Credit Policy of BRAC Bank Ltd. 18
3.3 Credit Risk Management 18
3.4 Wings of Credit Risk Management 19
Chap 4.0 Credit Approval of BRAC Bank Limited 20
4.1.Wholesale Credit and Medium Business 21
4.1.2 Types of Facilities offered to Corporate Clients 21
4.1.3 Approval Authorities 21
4.1.4 Analyzing Tools and Techniques 21
4.2.Retail Underwriting 22
4.2.1 Retail Credit 22
4.2.2 Cards Credit 22
4.2.3 Authorization and Fraud Control Unit 23
4.2.4 Central Verification Unit 23
4.3.SME Underwriting 23
Chap 5.0 Credit Collection of BRAC Bank Limited 24
7. Page 7 of 39
5.1.Credit Collection Unit 25
5.2.Collection Process 25
5.3.Classification of Loan on Basis of Days Past Due 25
5.4.Cards Collection Unit 25
Chapter 6.0 Bad Portfolio Recovery of BRAC Bank Limited 26
6.1. Special Asset Management-SME & Retail Banking 27
6.2. Special Asset Management & Credit Inspection -
Wholesale Banking & Medium Business
28
Chapter 7.0 Performance of Credit Risk Management 29
7.1 Performance on Basis of Amount of Unclassified &
NPL Loans
30
7.2 Loan Recovery Performance of BRAC Bank Limited
7.3 Summary of the Findings
42
43
Chapter 8.0 Recommendation and Conclusion 36
8.1 Recommendation 37
8.2 Conclusion 37
Appended Part 38
Bibliography 39
8. Page 8 of 39
List of Tables
Table No. Table’s Title Page
5.1 Classification of Loan on Basis of Days Past Due 25
7.1 Standard Loan of BRAC Bank Limited 30
7.2 SMA Loan of BRAC Bank Limited 31
7.3 Sub standard Loan of BRAC Bank Limited 32
7.4 Doubtful Loan of BRAC Bank Limited 33
7.5 Bad/Loss Loan of BRAC Bank Limited 33
7.6 Loan Recovery Performance of BRAC Bank Limited 34
A.1 Initiatives Taken for Non Performing Loans 38
Figure No Figure Title Page
7.1 Standard Loan of BRAC Bank Limited 30
7.2 SMA Loan of BRAC Bank Limited 31
7.3 Sub standard Loan of BRAC Bank Limited 32
7.4 Doubtful Loan of BRAC Bank Limited 33
7.5 Bad/Loss Loan of BRAC Bank Limited 34
7.6 Loan Recovery Performance of BRAC Bank Limited 35
List of Figures
9. Page 9 of 39
EXECUTIVE SUMMARY
BRAC Bank Limited is a scheduled commercial bank in Bangladesh. This is one of the leading
private commercial banks which is established under the banking companies Act 1991, the bank
began its operation on 4th
July,2001 with a primary objective of offering all types of commercial
banking services mostly emphasizing on promoting small and medium entrepreneurs all over the
country. At present BRAC Bank Limited has 151 branches, over 300 ATM Booths, 405 SME Unit
Offices, 1,800 remittance delivery points and 8,306 human resources.
This report is the fulfillment of the requirement for the evaluation process of the internship
program.The main purpose of the report is to have an overall idea about function and process of credit
risk management, analyzing tools and techniques used to evaluate credit proposal, analyzing steps
taken to recover Bank‟s bad portfolio of BRAC Bank Limited.
Lending is one of the main functions of a bank. The objective of Credit Risk management of BRAC
Bank Limited is to minimize the risk and maximize banks risk adjusted rate of return by assuming
and maintaining credit exposure within the acceptable parameters. The Credit Risk Management
department is responsible for upholding the integrity of the Bank‟s risk/return profile.
Credit Risk Management Department of BRAC Bank Limited conducted their functions by six wings.
Wholesale Credit, Retail Underwriting and SME underwriting- these three wings of Credit Risk
Management assess and approve the loan for the respective customers. Central Collection Unit
collects the credit. Special Asset Management wings help the bank to recover Bank‟s bad portfolio.
For credit approval, the Bank has a team who approve the credit. Different tools and techniques are
being used to evaluate a credit proposal. Retail Credit, Cards Credit, Authorization and Fraud
Control, Central Verification Unit (CVU) are related with retail underwriting.
Credit Collection Unit of BRAC Bank Limited collects credit based on the level of delinquencies of
credit. Special Asset Management wings help the Bank to recover bad portfolio by taking different
types of steps.
To understand the performance of the present credit risk management process, the year by year ratio
of loans which are grouped on basis of classification rules in the total loan and advances has
analyzed. From the performance analysis, it is found that the collection of Standard Loan decline in
year 2009 because of the national and global economic situation which reflects a low ratio of
Standard Loan to total loans and advances which is 89.99%. As a result, the balance of SMA, Sub
standard, Doubtful and Bad/Loss loan increases in year 2009. Since 2009, national as well as global
economy started to fallen in a dangerous phase of slowing growth and rising risk. But with the right
initiatives taken by the top management of BRAC Bank Limited i.e. establishment of regional Credit
Risk Management Centers, introduction of new wing called Special Asset Management & Credit
Inspection, since the following year 2010 the situation has become normal which reflects the
economy Bangladesh where economy starts back to upward growth phase from the impact of global
recession. Beside this in year 2010, the Bank also achieves a better loan recovery performance which
reflects by an 8.73% ratio of loan Recovery to total write off loans and advances which continues in
year 2011.
Although BRAC Bank Limited is successfully operating credit risk management, the Bank should
improve in some areas which will take help the Bank to become the leader of banking sector.
11. Page 11 of 39
1.0 Introduction of Report
1.1 Introduction:
Risk is the element of uncertainty or possibility of loss that prevail in any business transaction in any
place, in any mode and at any time. In the financial arena, enterprise risks can be broadly categorized
as Credit Risk, Operational Risk, Market Risk and Other Risk. Credit risk is the possibility that a
borrower or counter party will fail to meet agreed obligations. Globally, more than 50% of total risk
elements in Banks and Financial Institution (FI) s are credit risk alone. Thus managing credit risk for
efficient management of a FI has gradually become the most crucial task. Credit risk management
encompasses identification, measurement, matching mitigations, monitoring and control of the credit
risk exposures. As a leading bank of Bangladesh, BRAC Bank Limited has a fully functioning
department to perform the crucial task of Credit Risk Management (CRM).
1.2 Origin of the Report:
To complete BBA Program in Institute of Business Administration, Jahangirnagar University, a
student requires completing an Internship Program of three months attachment with an organization
followed by writing a report at the final and 8th semester of BBA program. This report is the
fulfillment of the requirement for the evaluation process of the internship program. This report titled
„Credit Risk Management of BRAC Bank Limited‟ is conducted on the basis of my practical
experience of three months long internship at Moghbazar Branch of BRAC Bank Limited. After
consultation with my faculty supervisor Mr. Md. Alamgir Hossen Lecturer, Institute of Business
Administration, Jahangirnagar University and under the direction of my organizational supervisor Mr.
Md. Golam Mawla, Customer Service Manager, Moghbazar Branch, BRAC Bank Limited, I have
prepared this internship report with the mentioned topic.
1.3 Rational of the Report:
Bangladesh is one of the developing countries in the world. The economy of the country has a lot left
to be desired and there are lots of scopes for massive improvement. In an economy like this, banking
sector can play a vital role to improve the overall socio-economic condition of the country. The banks
by playing the role of an intermediary can mobilize the excess fund of surplus sectors to provide
necessary finance to those sectors which are needed to promote for the sound development of the
economy. As the banks provide finance or lending to its counter parts, there arises a risk of credit risk,
which is the possibility that a borrower or counter party will fail to meet its obligations in accordance
with agreed terms. Even at present, this problem is haunting many banks and poses a major threat
towards their sound performing. So it‟s very important to have an effective and sound credit risk
management system in place which will help the bank mitigate its risk factors and carry out
successful financing service or lending. With that issue in mind, the topic „Credit Risk Management
of BRAC Bank Limited‟ has been undertaken as topic for my internship report.
1.4 Objective of the Report:
The report is prepared on the „Credit Risk Management of BRAC Bank Limited‟ with the thought of
getting in depth of the credit risk management approval and collection for different kinds of credit
and collection procedures of default loan.
Broad Objective: The broad objective of report is to evaluate the total Credit Risk Management
(CRM) process of BRAC Bank Limited.
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Specific Objectives: To attain the broad objective the following specific objectives will be pursued:
Identification of different wings and their sub units of CRM
Identifying different types of credit facilities offered to different types of clients
Identifying the functions of different wings as well as the whole department of CRM
Analyzing tools and techniques to evaluate a credit proposal
Identifying the collection process of default loans
Identifying steps taken to recover the bank‟s bad portfolio
Analyzing performance of CRM on the basis of amount of non performing loans
Analyzing performance of CRM on the basis of loan recovery performance
1.5 Scope:
Through this report emerging Banks and other Financial Institutes who want to develop an effective
Credit Risk Management Department as well as business students who want to learn about various
functions of Credit Risk Management will be benefited.
1.6 Methodology:
After starting my internship at BRAC Bank Limited, I had assigned by my faculty supervisor and
organizational supervisor to conduct my internship report titled „Credit Risk Management of BRAC
Bank Limited‟. To complete this report, I have collected my necessary information from both Credit
Risk Management department and branch level to successfully understand the whole process. After
completing my three months internship at Moghbazar branch of BRAC Bank Limited, with the
guidance of my faculty supervisor Mr. Md. Alamgir Hossen, I have completed my report by using my
collected information. I have also tried to focus on the performance of credit risk management in my
report by conducting different tables and figures related to credit risk management. To make the
report more meaningful and presentable, both primary and secondary data sources were used to
prepare this report. The nature of this report is descriptive with some numerical analysis.
Primary Sources: The primary source of information is based on my practical experience of three
months long internship at Moghbazar Branch of BRAC Bank Limited.
Secondary Sources: The secondary source of information is based on official website of BRAC
Bank Ltd. , operation manual of Credit Risk Management and annual report of BBL as well as related
different other websites, books etc.
1.7 Limitations:
On the way of preparing this report, I have faced following problems that may be termed as the
limitation of the study:
Bank‟s policy of not disclosing some sensitive data and information for obvious reason posed
an obstacle to prepare more informative report.
Personal limitations like inability to understand some official terms, office decorum etc.
created a few problems.
1.8 Structure of the Report:
The report is divided into three main parts:
Part 1: Introductory Part includes origin, rational, objectives, methodology, scope, limitations of the
report.
Part 2: Organizational Part contains company profile, human resource; CRAB rating, mobilization
of fund of BRAC Bank Limited.
Part 3: Project Part contains credit risk management practice, credit approval, credit collection, bad
portfolio recovery, performance of Credit Risk Management of BRAC Bank Limited,
recommendations and lastly conclusion.
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2.0 Overview of BRAC Bank Limited:
2.1 Company Profile of BRAC Bank Limited:
BRAC Bank Limited, one of the third generation of commercial banks started its journey on July 04,
2001. It is an affiliate of BRAC (Bangladesh Rural Advancement Committee), one of the world‟s
largest non-governmental development organizations founded by Sir Fazle Hasan Abed in 1972. The
Bank operates under a "double bottom line" agenda where profit and social responsibility go hand in
hand as it strives towards a poverty-free, enlightened Bangladesh. BRAC Bank focuses on pursuing
unexplored market niches in the Small and Medium Enterprise Business, which has remained largely
untapped within the country. The management of the Bank believes that this sector of the economy
can contribute the most to the rapid generation of employment in Bangladesh. Since inception in July
2001, the Bank's footprint has grown to 151 branches, over 300 ATM Booths, 405 SME Unit Offices,
1,800 remittance delivery points and 8,306 human resources. In addition to small business lending,
BRAC Bank has fast growing remittance, savings mobilization and consumer lending businesses
BRAC Bank intends to set standards as the market leader in Bangladesh. The Bank wants to
demonstrate that a locally owned institution can provide efficient, friendly and Modern full- service
banking on a profitable basis. The Bank produces earnings and pay out dividends that can support the
activities of BRAC, the Bank‟s major shareholder. Development and poverty alleviation on a
countrywide basis needs mass production, mass consumption and mass financing. The goal of BRAC
Bank is to provide mass financing to enable mass production and mass consumption, and thereby
contribute to the development of Bangladesh.
2.2 Human Resource:
At present, there are total 8,306 employees at BRAC Bank Limited. BRAC Bank Limited has a
vertical organizational structure with total 15 designations at the management hierarchy. The
management of BRAC Bank Limited is consisted of Board of Directors, Executives and Officers &
Staves. The Top management makes all the major decisions at BRAC Bank Limited. The Board of
directors being at the highest level plays an important role on the policy formulation. The Executives
and Officers are directly concerned with the day-to-day operation of bank.
2.3 CRAB Rating:
Credit Rating Agency of Bangladesh (CRAB) Limited has retained „AA3‟ rating in Long Term and
„ST-2‟ rating in the Short Term of BRAC Bank Limited in view of the performance of the Bank for
year 2010. The AA3 rating refers that BRAC Bank Ltd. has very strong capacity to meet bank‟s
financial commitments. The Bank differs from the highest-rated Commercial Banks only to a small
degree. AA3 is judged to be of very high quality and is subject to very low credit risk.The „ST–2‟
rating in the short term refers that the Bank has strong capacity for timely repayment. This rating also
refers that the Bank is characterized with commendable position in terms of liquidity, internal fund
generation, and access to alternative sources of funds.
2.4 Mobilization of Fund:
The main sources of fund for BRAC Bank Limited are:
i. Deposit
ii. Borrowing
i. Deposit: Deposit is the mainstay of the Bank's sources of funds. Following usual practices,
the Bank collects deposit through:
Current Deposit
15. Page 15 of 39
Savings Deposit
Term Deposit
ii. Borrowing: Apart from deposit, BRAC Bank Limited receives funds from other Banks,
Financial Institutions and Agents as borrowing which are in Bangladesh and also outside of
Bangladesh. In 2011, BRAC Bank Limited only receives funds as demand term borrowing
from
Bangladesh Bank
Uttara Bank Limited
Beside this, in previous years the Bank borrowed from other Banks, Financial Institutions and
Agents as demand term borrowing, short term deposit borrowing and fixed deposit borrowing
in Bangladesh. The Bank also received funds as demand term borrowing (non-interest
bearing) from different outside bank i.e. Standard Chartered Bank –USA, The Bank of Nova
Scotia- Canada, Citibank NA-USA,ICICI-India, Standard Chartered Bank-UK, Hypo Vereins
Bank Germany, HSBC-USA,HSBC-UK, HSBC-AUS, HSBC-Pakistan etc.
17. Page 17 of 39
Chapter Three
Credit Risk Management Practice of BRAC Bank
Limited
18. Page 18 of 39
3.0 Credit Risk Management Practice of BRAC Bank Limited
3.1 Overview:
Credit is the ability to command goods or services of another in return for promise to pay such goods
or services at some specified time in the future .For a bank, it is the main source of profit and on the
other hand, the wrong use of credit would bring disaster not only for the bank but also for the
economy as a whole. Credit risk is most simply defined as the potential that a bank borrower or
counterparty will fail to meet its obligations in accordance with agreed terms and conditions.
The objective of Credit Risk management of BRAC Bank Limited is to minimize the risk and
maximize banks risk adjusted rate of return by assuming and maintaining credit exposure within the
acceptable parameters. The Credit Risk Management department is responsible for upholding the
integrity of the Bank‟s risk/return profile. It ensures that risks are properly assessed, and that
risk/return decisions are made accurately and transparently. The overall success in credit management
depends on the banks credit policy, portfolio of credit, monitoring, supervision and follow-up of the
loan and advance. Therefore, while analyzing the credit risk management of BRAC Bank Limited, it
is required to analyze its credit policy, credit procedure and performance regarding credit risk
management.
3.2 Credit Policy of BRAC Bank Limited:
In order to minimize credit risk, BRAC Bank Limited has formulated a comprehensive credit policy
according to Bangladesh Bank Core Risk Management guidelines. Credit policy of the Bank provided
for the separation of the credit approval function from business, marketing and loan administration
function. Credit policy of BBL recommended through credit assessment and risk grading of all clients
at the time of approval and portfolio review. Credit policy also provides the guidelines of required
information for credit assessment, marketing strategy, approval process, loan monitoring, early alert
process, credit recovery, NPL account monitoring, NPL provisioning and write off policy, etc. The
board of directors reviews the credit policy of the bank annually.
3.2 Credit Risk Management:
Considering the key elements of Credit Risk the bank has segregated duties of the officers/ executives
involved in credit related activities. Separate division for Corporate, SME, Retail and Credit Cards
have been formed which are entrusted with the duties of maintaining effective relationship with the
customers, marketing of credit products, exploring new business opportunities etc. For transparency
in the operations during the entire credit year four teams have been set up. Those are:
i. Credit Approval Team
ii. Asset Operations Department
iii. Recovery Unit
iv. Impaired Asset Management
In credit management process, Sales Teams of the Corporate, Retail, SME, AND Credit Cards
business units book the customers; the Credit Division does thorough assessment before approving
the credit facility. Asset Operations Department ensures compliance of all legal formalities,
completion of all documentation, and security of the proposed credit facility and finally disburses the
amount. The Sales Team reports to the Managing Director & CEO through their line, the Credit
Division reports to the Managing Director & CEO, while the Asset Operations Department reports to
the Deputy Managing Director & COO. This arrangement has not only ensured segregation of duties
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and accountability but also helps in minimizing the risk of compromise with quality of the credit
portfolio.
3.3 Wings of Credit Risk Management Department:
Credit Risk Management Department of BRAC Bank Limited conducted their functions by six wings.
Those are:
I. Wholesale Credit
II. Retail Underwriting
III. SME Underwriting
IV. Central Collection Unit
V. Special Asset Management, SME and Retail Banking
VI. Special Asset Management & Credit Inspection, Wholesale Banking & Medium
Business
Wholesale Credit, Retail Underwriting and SME underwriting- these three wings of Credit Risk
Management assess and approve the loan for the respective customers. Central Collection Unit
collects the credit. Special Asset Management wings help the bank to recover Bank‟s bad portfolio.
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Chapter Four
Credit Approval of
BRAC Bank Limited
21. Page 21 of 39
4.0 Credit Approval of BRAC Bank Limited
4.1.1 Wholesale Credit & Medium Business:
Wholesale or corporate Credit means a contractual agreement in which a corporate client receives
something of value now and agrees to repay the lender the principle with interest at some later date.
Wholesale credit (WC) team mainly looks after two kinds of portfolio.
i. Corporate Business: WC team assesses and approves proposals from large established
corporate and emerging business
ii. Medium Business: WC team financing businesses which have crossed their early years
but has not yet become a large corporate entity
4.1.2 Types of Facilities Offered to Corporate Client:
BRAC Bank offers two types of credit facilities to corporate clients. Those are: (i) Funded and (ii)
Non-funded.
i. Funded facility: Funded facility means financing through cash. Overdraft, import and
export loans, long term loans are example of funded facility.
ii. Non-funded facility: Non- funded facility means non-involvement of fund/cash. Banks
extend this type of facility against some documents to third party on behalf of corporate
clients. Import and Export Loans i.e. Letter of Credit. and Guarantees and Bond i.e.
Performance Guarantee, Advance Payment Guarantee, Bid Bonds are examples of Non-
funded facility.
Beside these two types of facilities, BRAC Bank also offers Syndication Loan.
4.1.3 Approval Authorities of the Corporate Loans:
The approval authority of corporate loan may change time-to-time based on business volume and
person behind the desk but it mainly consists of
I. Head of Credit, Wholesale Banking & Medium Business
II. Chief Credit Officer
III. Managing Director & CEO
IV. Board
Due to large ticket size of loan facility, most of the proposals received by Wholesale Credit team are
approved by the Board of Directors.
4.1.4 Analyzing Tools and Techniques to Evaluate a Corporate Proposal:
To evaluate a corporate proposal, Wholesale Credit team apply the General 5C‟s which are-
I. Character
II. Capacity
III. Capital
IV. Conditions
V. Collateral
22. Page 22 of 39
4.2. Retail Underwriting:
Retail Underwriting is a unit of Credit Risk Management which deals with Retail Loans of the Bank.
Total retail underwriting is done from this wing. There is a prescribed Product Program Guide (PPG)
for each product & on the basis of that PPG, retail loans are approved.
Retail Underwriting is comprised with the following sub units:
i. Retail Credit
ii. Cards Credit
iii. Authorization & Fraud Control
iv. Central Verification Unit (CVU)
4.2.1 Retail Credit:
Currently Bank is offering Retail Loans under Retail Credit in following three categories:
I. Unsecured personal Loan: Unsecured personal loan is clean loan product where no cash
security is taken against the loan. Currently BRAC Bank is offering two Types of Unsecured
Personal Loans which are Quick Loan and Salary Loan.
II. Secured Loan: There are two secured retail loans offered by BRAC Bank which are Auto
Loan and House Building Loan.
III. Cash Covered loan: The general terms “Cash Secured Facilities” is used to indicate two
specific Retail Lending products. These are: Secured Overdraft (SOD) & Secured Loan (SL)
which are the major products of Retail Lending Portfolio of the bank.
All retail loans are EMI (Equal Monthly Installment) based loans other than Secured Overdraft
facility.
4.2.2 Cards Credit:
The main objective of Cards Credit sub wing is to assess the applications and come to a decision
whether to approve for issuing of credit card or not. If everything provided document is ok of a
particular application; credit then fix a credit limit according to PPG of Credit Cards. Another
important job is done by Cards Credit is duplicate checking. This is done to stop issuing more than
one card for a particular applicant. To have the control existing credit card database is checked by
several criteria i.e. Name, DOB, Mother‟s Name, Contact no. etc.
4.2.3 Authorization & Fraud Control Unit:
Authorization & Fraud Control Unit, Cards is functioning into three areas:
i. Authorization: Authorization is a process of approval or refusal of a payment card
transaction, limit issued in BDT, USD or in dual currency according to customized
amount desired by customer on different time and location. The major activity of the unit
is processing credit card cheque request from BBL branches and ROC‟s and providing
manual Authorization against specific code.
ii. Transaction Monitoring: Transaction Monitoring and detection team usually make calls
to all BBL credit card customer (Issuing and acquiring) to verify (POS and non POS)
transactions that fall under certain rules. As soon as a suspicious transaction is noticed
through live monitoring or internal reports, designated officer from detection team
contact the customer for authenticity of the transaction. If the customer disputed the
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transaction/s, the card is blocked immediately by placing specific block code. The
customer is also requested to send disputed letter to Customer Service regarding the
transaction/s.
iii. Detection and Investigation: Detection and Investigation Unit performs to check credit
card/loan applications after approval to prevent fraud attempts on sample basis. At the
same time, objective of Investigation team is to investigate fraud cases relating on
situation basis to identify the actual facts and build control measures to prevent the
similar fraud attempts in future.
4.2.4 Central Verification Unit (CVU):
As BRAC bank has a huge customer base it felt the importance of verifying clients before disbursing
any loan. The main purpose of this wing is to ensure contact point verification.CVU is committed is
delivering a contact point verification (CPV) services and other pertinent task in relevance to loan,
credit card application from prospective customer‟s for services in consumer credit division of the
Bank.
4.3.1 SME Underwriting:
SME Credit team is a unit under Credit Risk Management Division of BRAC Bank Limited which
manages the credit risk of Bank‟s SME credit portfolio.
Credit Analysts of SME Credit team assess the proposal with due emphasis on Client‟s requirement
and capacity. During assessment the analysts fulfill a Risk Evaluation Sheet (which covers most PPG
criteria) to ensure compliance with Policy and PPG. Identifying key risks involved in the proposal is
one of the most critical and tricky tasks for the credit analysts; it requires experience of handling such
clients directly to understand the business modalities and more importantly behavioral issues viz.
reputation, character etc.
Unlike Corporate, Retail and Cards (where all loan proposals require approval from Head office)
SME credit deals with approval of loan proposals of certain area at present.
4.3.2 SME Credit Risk Management Process:
The whole process of Credit Risk Management of SME is as follows –
Step 1: CRO‟s located in the unit offices across the country prepares a loan proposal
Step 2: Respective Supervisor (ZM / ARM) Recommends the loan proposal and sent to SME Credit
Step 3: Credit Analysts analyzes the loan proposal and place it before approver
Step 4: Credit Approver Approves / Declines the loan proposal based on the recommendation
Step 5: File sent to disbursement unit for disbursement
24. Page 24 of 39
Chapter Five
Credit Collection of
BRAC Bank Limited
25. Page 25 of 39
5.0 Credit Collection of BRAC Bank Limited:
5.1 Credit Collection Unit:
The collection process for SME and Retail starts when the customer failed to make one or more
contractual payment (installment). It therefore becomes the duty of the collection unit to minimize
the outstanding delinquent receivable and credit losses. Collection plays a key part in the credit
process and in ensuring the profitability of asset products and quality of the portfolio by collecting
the delinquent receivables efficiently and effective. The main objective of collection is to ensure
that, wherever possible, an account that is in arrears is brought up to date and the customer‟s
goodwill is retained.
5.2 Collection Processes:
Customers are provided with an Offer Letter or Banking Arrangement letter during Loan
disbursement where the total payment mood and loan details are described. When a customer fails
to fulfill the agreed terms or misses the required payment, the account then enters collections.
Collection department is responsible for collecting the overdue amount from the delinquent
customers. There are different stages involved in collection after an account enters delinquency
till regularization of the account by recovering the overdue. Basically collection can be broadly
divided into four stages which are servicing, locating, collecting and cancellation & write-off. The
aging of an account in collections is with reference to the days since missed payment.
5.3 Classification of Loan on Basis of Days Past Due:
The level of delinquencies of loan is determined based on the number days past of monthly
installment from 1st payment date by the customer, following are basis of bucket calculation as
guided in the Days Past Due (DPD):
Table 5.1: Classification of Loan on Basis of Days Past Due
Particulars DPD Reporting as
Regular Customer 0 DPD Regular
The sum past due is equivalent to one
month‟s payment
X DPD(0-29) Delinquent
The sum past due is equivalent to two
month‟s payment
30 DPD(30-59) Delinquent
The sum past due is equivalent to three
month‟s payment
60 DPD(60-89) Delinquent
The sum past due is equivalent to four
month‟s payment. Interest to be suspended
at this point.
90 DPD(90-119) Delinquent
The sum past due is equivalent to five
month‟s payment
120 DPD (120-149) Delinquent
The sum past due is equivalent to six
month‟s payment. 50% charge off at this
point.
150 DPD (150-179) Delinquent
5.4 Cards Collection Unit:
The collection process of credit cards starts when the cardholder failed to meet one or more
contractual payment (i.e. minimum 5 % of the outstanding payment) or exceeds the allocated
credit limit or both. It therefore becomes the duty of the Collection Unit to minimize the
outstanding delinquent receivable and credit losses.
26. Page 26 of 39
Chapter Six
Bad Portfolio Recovery of
BRAC Bank Limited
27. Page 27 of 39
6.0 Bad Portfolio Recovery of BRAC Bank Limited:
6.1 Special Asset Management- SME and Retail Banking:
Special Assets Management (SAM)-SME & Retail Banking is a special department under CRM.
Its vital role is to recover the Bank‟s bad portfolio. SAM deals with Bank‟s non-performing loans
through legal persuasion/procedure and facilitates external and internal recovery forces to
maintain Bank‟s portfolio at risk (PAR) at a steady position.
Based on priority, SAM is designed mainly as SME unit and Retail unit and also two separate
units for Legal support & MIS and a Monitoring unit which acts as internal audit of the both
portfolio. SAM department deals with the legal actions regarding mitigation of bad portfolio
under SME & Retail Banking Division.
6.1.1 File Transfer:
Files transfer to SAM from SME when the loan reaches at DPD 180. SAM receives the file from
Retail when the loan reaches at DPD 360.
6.1.2 Legal Notice:
Legal notice issued to SME at DPD 145 and for Retail at DPD 360, SAM-S&R would arrange to
serve 1st legal notice for warning the default borrower to adjust the total outstanding and 2nd
legal notice would be served after bouncing the cheque or before litigation. 1st
legal notice served
centrally across the country and 3rd
party recovery agencies are working with retail defaulters. 15
(fifteen) days in 1st
legal notice and 30 (thirty) days in 2nd
legal notice under NI Act given to the
defaulter to adjust the total outstanding.SAM will offer Auction to recover the overdue loan
against mortgaged properties before filing the case.
6.1.3 Write- off Management:
BRAC Bank has a specific Write-off policy developed based on Bangladesh Bank circulars. SAM
takes initiative to write-off bad portfolios as per policy if following criteria satisfied,
a) Classification status will be Bad/Loss (BL)
b) 100% provided
c) Litigated (under any kind of Law of the land)
6.1.4 Waiver process:
SAM with its country wide recovery structure takes initiative to settle bad loans amicably by
giving delinquent customer waiver facility. The waiver amount will be fixed on judgmental basis
i.e. affected by natural calamities, demise, business closed etc. however, in any cases; waiver of
principal portion is not awarded.
6.1.5 Case Withdraw:
SAM withdraw the case when a litigated defaulter adjusts outstanding amount in full with updated
interest, legal costs and other expenses if any, and/or upon amicable settlement SAM withdraws
the case against such defaulters on receipt of clearance certificate from Operations.
6.1.6 External 3rd party agency Management:
SAM hands over the files to 3rd party recovery agency after one month of issuance of 1st legal
notice. Only the retail loan files, which are delinquent (if minimum 30% of outstanding is not
recovered within 30 days after 1st legal notice) are handed over to outsource. SAM takeover the
files from 3rd
party recovery agency after 90 days.
6.2 Special Asset Management & Credit Inspection - Wholesale Banking & Medium
Business: Special Asset Management & Credit Inspection - Wholesale Banking & Medium
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Business department is split up from the Corporate CRM to maintain and ensure appropriate
recovery strategies are implemented as per policy guideline.
The department functions under three major areas which are as follows:
i. Credit Inspection through File and Field level area
ii. Early Alert Account
iii. Legal Procedure
6.2.1 Credit Inspection:
Credit Inspection through file and field level area deals with all matters relating to credit
inspection, ensuring compliance of BBL policy towards credit granting process, corporate
portfolio review and physical inspection of client's premise and files, including security
documents, for providing management information reports on a regular and ad hoc basis.
6.2.2 Early Alert Account (EAA):
Early Alert Process is an effective tool & technique that help BBL in detecting any deterioration
in corporate and medium enterprise clients account and trigger Bank‟s problem accounts at an
early stage so that proper attention can be given to avoid any losses. An Early Alert Report (EAR)
is developed by respective RM and sent to CRM within 07 days for identification of weakness
and other discrepancy. On the basis of market information/ industry position or other subjective
issues which has some strong ground, CRM may recommend transferring the status of a regular
account to EAA status.
6.2.3 Legal Procedure:
SAM & CI deals with managing impaired assets, Non-Performing Loan and the associated legal
aspects.
6.2.3.1 Account Transfer Procedure:
When an account is being downgraded to SS and below, a Request for Action (RFA) along with a
checklist should be completed by RM with the help of CRM division and forwarded to Head of
Special Asset Management & Credit Inspection” (HOSAM&CI) for acknowledgement.
6.2.3.2 Non Performing Loans Account Monitoring:
Nonperforming loans (NPLs) refer to those financial assets from which banks no longer receive
interest and/or installment payments as scheduled. As the account is handed over to SAM & CI,
WB & MB, the account is assigned to an account manager within SAM, who will review all
documentation, meet the customer with RM and prepare a Classified Loan Review (CLR) report.
The CLR must be approved by the Chief Credit Officer and copied to the Head of Corporate
Banking. The initial CLR should highlight any documentation issues, loan structuring weakness,
proposed workout strategy and seek approval for any loan loss provisions that are
necessary(Please see Appendix for details of initiatives taken for NPLs).
29. Page 29 of 39
Chapter Seven
Performance of Credit Risk Management
of BRAC Bank Limited
30. Page 30 of 39
7.0 Performance of Credit Risk Management:
7.1 Performance of Credit Risk Management on the Basis of Amount of Unclassified Loans
and Non Performing Loans:
Non Performing Loans can be classified into different varieties usually based on the “length of
overdue” of the said loans. NPLs are viewed as a typical byproduct of financial crisis: they are not
a main product of the lending function but rather an accidental occurrence of the lending process,
one that has enormous potential to deepen the severity and duration of financial crisis and to
complicate macroeconomic management. This is because NPLs can bring down investors‟
confidence in the banking system, piling up unproductive economic resources even though
depreciations are taken care of, and impeding the resource allocation process. For this reasons, a
bank‟s Credit Risk Management performance can easily measured by analyzing present balance
of NPL or in other words by analyzing the year by year ratio of loans which are grouped on basis
of classification rules in the total Loan and Advances.
7.1.1 Standard Loan:
Standard loan is an unclassified loan. These types of loan accounts are performing satisfactorily in
the terms of its installments and no overdue is occurred.
Table 7.1: Standard Loan of BRAC Bank Limited from Year 2007 to Year 2011
Year Total Loans and
Advances(in BDT)
Amount of Standard
Loan (in BDT)
Ratio of Standard Loan to
Total Loans and Advances
2007 32,461,102,180 30,001,002,686 92.42%
2008 52,676,716,740 49,102,865,704 93.22%
2009 64,150,835,159 57,728,435,549 89.99%
2010 84,302,789,317 77,162,088,870 91.53%
2011 90,822,174,665 83,649,643,140 92.10%
Figure 7.1: Standard Loan of BRAC Bank Limited from Year 2007 to Year 2011
From the above figure of ratio of Standard Loan to Total Loans and Advances of BRAC Bank
Ltd., we can see that in year 2009 the ratio declined .Otherwise in other four years the ratio
increases than the previous year.
88.00%
89.00%
90.00%
91.00%
92.00%
93.00%
94.00%
2007 2008 2009 2010 2011
Ratio of Standard Loan to Total Loans
and Advances (2007-2011)
31. Page 31 of 39
7.1.2 Special Mention Account-SMA:
Special Mention Account-SMA is an unclassified type of loan. This classification contains where
irregularities have been occurred but such irregularities are temporarily in nature. The overdue
period of this type of loan is 90-179 days.
Table 7.2: Special Mention Account-SMA of BRAC Bank Limited from Year 2007 to Year
2011
Year Total Loans and
Advances(in BDT)
Amount of Special
Mention Account-
SMA (in BDT)
Ratio of SMA to Total Loans
and Advances
2007 32,461,102,180 1,015,321,964 3.13%
2008 52,676,716,740 1,100,839,246 2.09%
2009 64,150,835,159 2,544,742,867 3.97%
2010 84,302,789,317 2,211,142,271 2.62%
2011 90,822,174,665 2,217,648,340 2.44%
Figure 7.2: Special Mention Account-SMA Loan of BRAC Bank Limited from Year 2007 to
Year 2011
From the above figure, it can easily be understand that in year 2009 the SMA slightly increases
than the previous year. Otherwise in other four years the ratio decreases than the previous year.
3.13%
2.09%
3.97%
2.62%
2.44%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
2007 2008 2009 2010 2011
Ratio of SMA to Total Loans and Advances
(2007-2011)
32. Page 32 of 39
7.1.3 Sub Standard Loan:
Sub Standard –SS is a classified loan. The overdue period of this type of loan is 180-269 days.
Table 7.3: Sub Standard Loan of BRAC Bank Limited from Year 2007 to Year 2011
Year Total Loans and
Advances(in BDT)
Amount of Sub
standard Loan (in
BDT)
Ratio of Sub standard Loan to
Total Loans and Advances
2007 32,461,102,180 646,601,996 1.99%
2008 52,676,716,740 1,004,430,866 1.91%
2009 64,150,835,159 1,504,126,278 2.35%
2010 84,302,789,317 1,142,795,194 1.36%
2011 90,822,174,665 1,487,012,988 1.44%
Figure 7.3: Sub Standard Loan of BRAC Bank Limited from Year 2007 to Year 2011
From the above figure, we can say that in year 2009 the ratio of Sub standard loan to total loan
and advances were the highest.
7.1.4 Doubtful Loan:
This classification contains where doubt exists on the full recovery of the loan and advance along
with a loss is anticipated but can not be quantifiable at this stage. The overdue period of this type
of loan is 270-359 days. This type of loan is an example of classified loan.
2007 2008 2009 2010 2011
Series1 1.99% 1.91% 2.35% 1.36% 1.44%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
Ratio of Sub standard Loan to Total
Loans and Advances (2007-2011)
33. Page 33 of 39
Table 7.4: Doubtful Loan of BRAC Bank Limited from Year 2007 to Year 2011
Year Total Loans and
Advances(in BDT)
Amount of Doubtful
Loan (in BDT)
Percentage of Doubtful Loan
in Total Loans and Advances
2007 32,461,102,180 317,048,692 0.98%
2008 52,676,716,740 684,605,428 1.3%
2009 64,150,835,159 990,855,828 1.54%
2010 84,302,789,317 1,430,876,989 1.7%
2011 90,822,174,665 1,289,101,344 1.42%
Figure 7.4: Doubtful Loan of BRAC Bank Limited from Year 2007 to Year 2011
Although the ratio of doubtful loan to total loan and advances continuously increases since 2010,
the ratio decreases in 2011.
7.1.5 Bad/Loss Loan:
Bad/Loss Loan is a particular loan and advance fall in this class when it seems that this loan and
advance is not collectable or worthless even after all the security has been exhausted. This type of
loan is not recovered within more than360 days. This type of loan is another example of classified
loan
Table 7.5: Bad/Loss Loan of BRAC Bank Limited from Year 2007 to Year 2011
Year Total Loans and
Advances(in BDT)
Amount of Bad/Loss
Loan (in BDT)
Percentage of Bad/Loss Loan
in Total Loans and Advances
2007 32,461,102,180 481,126,842 1.48%
2008 52,676,716,740 783,975,496 1.49%
2009 64,150,835,159 1,382,674,637 2.16%
2010 84,302,789,317 2,355,885,993 2.80%
2011 90,822,174,665 2,361,372,301 2.6%
0.98%
1.30%
1.54%
1.70%
1.42%
0.00%
0.50%
1.00%
1.50%
2.00%
2007 2008 2009 2010 2011
Ratio of Doubtful Loan toTotal
Loans and Advances (2007-2011)
34. Page 34 of 39
Figure 7.5: Bad/Loss Loan of BRAC Bank Limited from Year 2007 to Year 2011
Although the ratio of doubtful loan to total loan and advances continuously increases since 2010,
the ratio decreases in 2011.
7.2 Loan Recovery Performance of BRAC Bank Limited:
The recovery performance of the bank was not so good during the period 2007-2009. In the year
2010, The Bank recovered that most percentage of recovery write off to total write off loans and
advances which is 8.73%.But the rate declines in 2011. Loan recovery is a time consuming and
there are lots of works to do for the recovery of loans.
Table 7.6: Loan Recovery Performance of BRAC Bank Limited from Year 2007 to Year
2011
Year Write off Loans and
Advances (in BDT)
Recovery of Write off
Loans (in BDT)
Ratio of Loan Recovery to
Total Write off Loans and
Advances
2007 103,825,117 5,104,282 4.92%
2008 160,400,517 6,573,347 4.10%
2009 1,156,448,923 55,497,494 4.80%
2010 2,123,858,831 185,483,529 8.73%
2011 2,932,247,750 224,876,871 7.67%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
2007 2008 2009 2010 2011
Ratio of Bad/Loss Loan to Total Loans
and Advances (2007-2011)
35. Page 35 of 39
Figure 7.6: Loan Recovery Performance of BRAC Bank Limited from Year 2007 to Year
2011
7.3 Summary of the Findings:
From the performance analysis, it is found that the collection of Standard Loan decline in year
2009 because of the national and global economic situation which reflects a low ratio of Standard
Loan to total loans and advances which is 89.99%. As a result, the balance of SMA, Sub standard,
Doubtful and Bad/Loss loan increases in year 2009. Since 2009, national as well as global
economy started to fallen in a dangerous phase of slowing growth and rising risk. But with the
right initiatives taken by the top management of BRAC Bank Limited i.e. establishment of
regional Credit Risk Management Centers, introduction of new wing called Special Asset
Management & Credit Inspection, since the following year 2010 the situation has become normal
which reflects the economy Bangladesh where economy starts back to upward growth phase from
the impact of global recession. Beside this in year 2010, the Bank also achieves a better loan
recovery performance which reflects by an 8.73% ratio of loan Recovery to total write off loans
and advances which continues in year 2011. BRAC Bank Limited is also rated AA3‟ in Long
Term and this rating is judged to be of very high quality and is subject to very low credit risk.
4.92%
4.10%
4.80%
8.73%
7.67%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
2007 2008 2009 2010 2011
Ratio of Loan Recovery to Total Write
off Loans and Advances(2007-2011)
36. Page 36 of 39
Chapter Eight
Recommendation
And
Conclusion
37. Page 37 of 39
8.0 Recommendation and Conclusion
8.1 Recommendation:
To improve credit risk management further, BRAC Bank Limited should improve in some areas.
Those are:
The Bank should apply 7C instead of 5C as evaluation tools and technique of a credit
proposal. Additional 2C which are Coverage and Cash flow to better understand the credit
worthiness of borrower.
In the Classified loan amount the Bank should identify which sector has the largest
position of loan classification. By analyzing past data this kind of risky sector can be
identified. After identifying it, strict monitoring can be done for avoiding classified loans.
Various facilities should be provided to regular borrowers which will encourage a
borrower to be a good borrower. Names of defaulters as well as the good and regular
payers may be published in various publications which would help the bank to decrease
the number of defaulter as well as the volume of large outstanding loan amount.
Like SME sector, in wholesale and retail sector credit approval authority should be
delegated to individual executives rather than Board to ensure accountability. This system
will not only ensure accountability of individual executive but also expedite the approval
process.
8.2 Conclusion:
Credit Risk Management is very important for any bank. As a third generation bank, BRAC Bank
Limited has a great credit risk management practice which is one of the best in Bangladesh. To
prepare this internship report, I have tried to incorporate the necessary and relevant information in
my report from my own personal experience as well as other sources. The study was conducted
by using the data of BRAC Bank Limited from the year 2007 to 2011.Like previous years, BRAC
Bank Limited should continue to take regular initiatives to achieve better quality portfolio and
move the Bank forward.
38. Page 38 of 39
Appended Part
Table A.1: Initiatives Taken for Non Performing Loans
Step Overdu
e
Period
Action Plan Initiative taken
Department /
Division
0 days For each corporate customers, letter to be generated to
inform about expiry of the existing limit, at least two
months ahead of the expiry date and due date for
installment
Corporate
Banking
Division
1 1 to 30
days
Pursue over telephone for adjustment/payment of overdue
installment / interest and make a diary note.
Issue letter-informing about account fallen overdue and
request for regularization
Corporate
Banking
Division
2 31 to 45
days
Persuasion over telephone to be continued
Issue 1st
reminder
Corporate
Banking
Division
3 46 to 59
days
Issue 2nd
reminder for adjustment
Visit customer and submit a visit report
Check security documents
Corporate
Banking
Division
Wholesale
Banking
Operation
4 60 to 89
days
Issue 3rd
reminder for adjustment
Report as EAA by Corporate/CRM
Call report
Corporate
Banking
Division
Corporate CRM
SAM & CI, WB
& MB
5 90 to
179
days
Treat as Special Mention Account (SMA)
Charge interest into Suspense
Issue notice to the borrower at least one month ahead of
classification stating that the account is going to be
classified
Corporate
Banking
Division
39. Page 39 of 39
Final reminder demanding payments and informing of the
consequences i.e. warning of legal action in case of
default.
6 180 to
269
days
Borrower to be transferred to SAM & CI through
prescribed format with proper justification
Letter to Guarantor referring to above efforts seeking their
cooperation/asking for adjustments
Corporate
Banking
Division
SAM & CI, WB
& MB
7 270 to
329
days
Review all documents (internally/Externally)
Meet the customer
Classified Loan Review Report
SAM & CI, WB
& MB
8 330 to
420
days
Meet the customer
Site visit
Strategy preparation for reschedule/exist/case filling under
NI Act and Artha RIN
Circulate the defaulter names to different Banks/NBFI
SAM & CI, WB
& MB
BIBLIOGRAPHY
1. R.S. Raghavan. (2003). Risk Management in Banks. Chartered Accountant, 841-851.
2. Molla, N. (2011). Rating Report (Surveillance): BRAC Bank Limited. CRAB Rating, 45.
3. Focus Group on Credit Risk Management of Bangladesh Bank. (2005). Credit Risk
Management: Industry Best Practices. Dhaka: Bangladesh Bank Publishing Service.
4. E. R. Fiedler. (1971).The Meaning and Importance of Credit Risk. Measures of Credit Risk
and Experience, 10-18.
5. Company Profile of BRAC Bank Limited. (2011). Retrieved April 17, 2012 from
http://www.bracbank.com/company_profile.php
6. Annual report 2010 of BRAC Bank Limited. (2011). Credit Risk Management, 91-94.
7. Annual report 2007-2011of BRAC Bank Limited. Notes to the Financial Statement.