A Study on Non-Performing Loan: from the Perspective of the Banking Industry in Bangladesh
The credit goes to the original writer as fully mentioned in side the docs.
“Credit Risk Management” A comparative analysis on three selected Banks- (Na...Ashis Barman
“Credit Risk Management”
A comparative analysis on three selected Banks- (National Bank, Sonali Bank & Islamic bank Bangladesh Limited)
By
Ashis Kumar Barman
ID# 2013110001094
Has been approved
January 2015
__________________
Sadia Noor Khan
Lecturer
School of Business
Southeast University
A Study on Non-Performing Loan: from the Perspective of the Banking Industry in Bangladesh
The credit goes to the original writer as fully mentioned in side the docs.
“Credit Risk Management” A comparative analysis on three selected Banks- (Na...Ashis Barman
“Credit Risk Management”
A comparative analysis on three selected Banks- (National Bank, Sonali Bank & Islamic bank Bangladesh Limited)
By
Ashis Kumar Barman
ID# 2013110001094
Has been approved
January 2015
__________________
Sadia Noor Khan
Lecturer
School of Business
Southeast University
The report is originated in result of my internship, which I have done, as a requirement of BBA program. This report is done based on my three months internship in Janata Bank Limited.
During my stay at the office as an internee I never felt vague and ambiguous. The environment of the Janata Bank Ltd. is well and friendly. The staffs are specialized in their respective fields. Each of them works on their own and there id supervised from the top management. The motivation of the staff, I believe comes from the very sense of responsibility.
The report is originated in result of my internship, which I have done, as a requirement of BBA program. This report is done based on my three months internship in Janata Bank Limited.
During my stay at the office as an internee I never felt vague and ambiguous. The environment of the Janata Bank Ltd. is well and friendly. The staffs are specialized in their respective fields. Each of them works on their own and there id supervised from the top management. The motivation of the staff, I believe comes from the very sense of responsibility.
A Study of Agriculture Loan of Axis Bank Ltd (MBA Finance Project)Avinash Labade
If any have Need Project Report please call +919011888598 and i will provide only Word File.
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12 steps to achieve excellence in debt collection and recoveryEXUS
The challenges Collection & Recovery departments face nowadays have forced them to become more inventive and efficient.
The 12 steps to achieve excellence in C&R embed business knowledge that EXUS has accumulated all these years through the cooperation with field experts.
Go through this presentation and evaluate how these “best practices” employed by top financial institutions in the world can be adopted by your organisation.
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
"Credit Performance of a Branch for Export Import Bank Bangladesh Limited,’Md. Sabbir Ali
From the research it has been found that evaluating credit worthiness is the very first step of minimizing credit risk. Exim bank always evaluates worthiness of customers before granting their loans or advances. Employees of the bank believe that the existing way of evaluating credit worthiness has no flaws.
Exim bank takes different kind of security measures before and after granting credit. For example, exim bank looks at the CIB report and Transaction Profile to find out the credit history and credit defaults of the customer. Security measures like frequent monitoring and early alert process for loan payment can reduce the risk of credit default.
From the research it has been found that documentation has positive correlation with credit Risk management Processand hence documentation can minimize credit risk. Proper documentation of loan and advance provides legal support against the loan.
Collateral is one of the most important parts of credit risk management. Collateral provides safeguard against non-performing loans and advances. For that reason banks always trends to keep good quality collateral. This research has found that there is a positive correlation between collateral and minimizing credit risk.
Efficiency also has an effect on credit risk management. Bank’s ability to understand risk and schedule disbursement and collection increases efficiency and minimizes credit risk.
The principal function of each and every bank is to acquire deposits and provide loan. Every people
have faith on the bank and save their money for securities and getting some interest. Bank performs
truthful position to maintain its functions properly. They collect cash from them as credit score
and provide loan to the needy people in exchange of some interest. The profitability of bank in the
mainly rely on well management of the bank. For ensuring its suitable functions, banks need to
maintain its liquid assets and liabilities.
Throughout this internship report I’m going to speaking about the liquidity management of Janata
Bank Ltd. and its corresponding aspect. My internship report has been divided in some chapter on
the basis of understanding the study. Additionally, I’ve discussed the management method of
Janata Bank Ltd. and structure of the bank that will help to get primary notion about the Janata
Bank Ltd and scope and limitations that I confronted in times of getting ready this report. I tried
my best to encompass some introductory contents about the report I have selected. I firmly think
that this will assist to get a clear view about the exclusive functions of Janata Bank Ltd.
As my topic is about liquidity management of Janata Bank Ltd. so it’s required to give view about
the core issue of the liquidity management of the Janata Bank Ltd. Additionally, I’ve brought the
liquidity management guideline of Bangladesh Bank and tried my best to collect facts about the
liquidity management of Janata Bank Ltd. that the bank has conducted. All these records about the
SLR and CRR condition of Janata Bank Ltd have considered in preparing the report. Liquidity
management refers the management of the liquid assets and maintains reserves to attain goals
following the rules and regulations of the Bangladesh Bank. Loan and advances management of a
bank has significant effect on the liquidity risk of the bank. So Janata Bank Ltd. evaluates the
applicant for a loan carefully to provide loan a right person. In every stages of works of Janata
Bank Ltd. have to follow the guidelines and regulations of central bank of Bangladesh. The
internship program helps me to know the management process of the Janata Bank Ltd.
Finally, I would like say that, Liquidity management is core issue of bank financial management,
so every bank should keep careful attention on the liquidity management of the bank.
3. Presenting ByPresenting By
Mizanur Rahman
ID: 08092101084
18th
Intake (Major In Finance)
BBA Program
Bangladesh University of Business
& Technology (BUBT)
4. The internship program is an
integral part of the BBA program
For the completion of BBA degree
I have got an opportunity to do my
internship at National Credit and
Commerce Bank Ltd
Without practical exposure theory
can never be acquired.
Background of The Report
5. Objective of the Report
Specific Objective:
To identify the pattern of the different
types of loan system;
To describe the features of loan schemes;
To describe how the bank approves of
credits;
To explain how the bank disburse loan to
the clients;
6. Objective of
the Report
(Cont.)
To explain the recovery system of NCC bank;
To identify the problems related to Credit
Approval, Loan Disbursement & Recovery system
of NCC Bank Limited;
To give recommendations to overcome the
problem.
7. The main constraint of the study
is insufficient information
Time was very limited
The employee can’t provide
various information due to security
and other corporate obligation
All employee was so busy, they
could provide me very short time
LimitationsLimitations
8. Experience has shown that this department must
satisfactorily answer three major questions
regarding each loan application:
Is the borrower creditworthy? How do you know?
Can the loan agreement are adequately protected
and the customer has a high probability of being
able to service the loan without excessive strain?
Can the bank perfect its claim against the assets
or earnings of the customer so that, in the event of
default, bank funds can be recovered rapidly at low
cost and with low risk?
Let’s look in turn at each of these three key issues
in the “yes” or “no” decision a bank must make on
every loan request.
11. SOUND PRINCIPLES OF LOANS:
Sound principle of lending is obvious to avoid
loan default tendency and risk elements.
which in depth study must be made on the
following points by this bank:
When the loan is to be given
Why the loan is to be given
How the loan is to be given
What may happen after disbursement of the loan
Generally what happen (from past experience) after
disbursement of the loan
12. SOUND PRINCIPLES OF LOANS
(Cont.)
Is it hopeful that the borrower will repay the loan?
Whether loan should be given only in private
sector or also in government sector as well.
Whether only secured loan will be extended or
provision should be kept for clean loan also
Whether only short term and mid term loan will
be considered or long term will also be
considered?
Whom to be financed?
Whether loan will be extended to trading sector
only or industrial sector will also be considered.
14. Findings
o Profit rate and payback period are very
important criteria for any kind of
investment. In NCCBL the payback period is
one year.
o Clients are not satisfied of the
documentation charged by NCCBL.
o Day by day new upcoming banks are
coming with many new investment
services, which are the threat for
NCCBL .
15. Findings (Cont.)
oThe operation of NCCBL is decentralized and the
authority for loan sanctioning is delegated in order
to make its operations more flexible and
responsive to the growing needs of the economy
oIn every bank there is a certain amount that a
branch manager can sanction, but in this bank if
anyone wants to take a single Taka for loan then
the manager has to for the head office approval.
Sometimes it may be the cause of losing
customer, because it will take time to sanction a
loan.
16. Findings (Cont.)
o Monitoring the credit position time to time to find
the defaulter and necessary actions are taken
against them to make-up quickly.
o Irregular’s communication with the defaulter
customers and guarantors physically can’t
help to the recovery of the money.
o Banker should be careful in the selection of
security to maintain the safety of the SME
loan. This estimated value is help to the
recovery.
17. Recommendations:
NCCBL should include more diversify products
in their investment schemes, such as
– Teacher Loan, Shop Financing Scheme,
Personal Loan for Women etc. to attract clients
and to gain competitive advantage.
Most of the clients desire lower profit rate and
more payment period. Due to the present govt.
and Bangladesh Bank monetary policy for
controlling inflationary rate it is not possible for
NCCBL to reduce profit rate. Therefore suggestion
can be made for increasing payment period.
18. Bank should provide more emphasis on
recovery the loan within the scheduled period of
time to reduce the bad debt.
Loan sanctioning process should be easier and
more quickly.
Loan monitoring and follow-up is a continuous
process. Monitoring the loans by on- site as well
as off site supervision helps the banker to
build banker-customer relationship. So, it should
give importance on the same.
Recommendations (Cont.)