2. Rabeya Sultana Lata
Lecturer of BBA
Northern University Bangladesh
Name ID
Kazi Nafiz Ahmed BBA-100361367
Elora Pervin BBA-110170239
Fakrul Abdein BBA-110170200
Tamanna Afrozi BBA-110170249
Mahbuba Rahman Dina BBA-110170227
Jakir Khan BBA-110170201
Presented By:
Presented To
4. 1. Analysis of the environment of the situation
Mr. Hamid belongs to a very reach family, he studied and served
in London for about 20 years, recognizes that his family and
social profile is quite rich. He formed a company and came to the
bank for loan. Bank after studying the papers and investigating
sanctioned tk=20 lac loan to the company. But the Company
failed miserably and therefore was not able to pay the
installments. Gradually the loan amount accumulated to tk=120
lacks.
5. Continue……
In such situation borrower company gave a proposal to the bank for
rehabilitation of the project in expectation to run operations
profitably. Bank approved the proposal, the assets of the company is
mortgaged to the bank as security of loan amount. But The Company
failed to make profit, and still the company’s performance is below
the break even. Under this situation the company failed to keep its
commitment, and the loan amount increased to tk=340 lac.
6. 2. Main issue of the problem
The main issue of the problem is the recovery of such a huge
amount of loan. The Company has not been able repay the loan
installments. The project is found to be as a loss project. Company’s
liability is getting higher day by day. Bank is planning to take legal
actions against the borrowing company, so the main concern is how
to recover the amount.
7. 3. Main actors in connection with the problem
Mr. Hamid
Mr. Hamid’s family members as a owners of Hamid Textile
Mills ltd.
Hamid Textile Mills Ltd.
8. 4. Main Causes or determinants of the problem
Managerial incapability.
Resource stringency
Over capitalization towards eventual creation of in-operative assets.
Site selection was not appropriate in consideration with the nature
of the firm.
Delay in implementation due to shortage of equity.
Inadequate monitoring by the Bank.
Delay in implementation due lack of vision.
9. 5. Alternative solutions of the problem:
Taking Legal Actions.
Rescheduling the loan and installments.
Participating in managerial decision making process to make
the firm profitable, through experienced personnel.
Increase the monitoring by the bank.
10. 6. Recommendation
At first bank should increase its monitoring over the overall
activities of the company. If it does not work then they should try to
reschedule the loan with the company, so that the investment could
be recovered in the view of the overall industry is profitable and in
growth stage, therefore proper policy and decision making, could
make the Company profitable. At last but not the least, if these
things don’t work, then the Bank should move to the Court and take
Legal Actions for recovery of the loan.
