presentation of Saima binte yusuf of patuakhali.pptx
1. WELCOME TO PRESENTATION
Supervisor
Dr. Md. Nur Nabi
Professor
Department of Finance and
Banking
Patuakhali Science and
Technology University
Presenting By
Name: SAIMA BINTE YUSUF
ID: EF 1903019
Department of Finance and
Banking
Patuakhali Science and
Technology University
3. Charles Mensah (1999) stressed the importance of credit
management as follows: Credit management process deserves
special emphasis because proper credit management greatly
influences the success or failure of financial institutions.
Hence, the purpose of this study is to assess the recent
performance of credit management of Dhaka Bank limited
from different perspectives in light of the practices of modern
credit management in financial institutions.
4. OBJECTIVES OF THE STUDY
Broad objective:
The broad objective of the report is to analyze the credit
management of Dhaka Bank Limited. However, the study has set
the following specific objectives.
The specific objectives of the study are-
To know the theoretical aspects of credit Management of Dhaka
Bank limited.
To know the procedures for disbursement and recovery system of
Credit of Dhaka Bank Ltd.
To know the comparative Credit performance of Dhaka Bank
limited.
5. Methodology of the Report
Research Design
The study analysis of credit management of Dhaka Bank Ltd. is descriptive in
nature which is mainly based on secondary data. The study focuses on credit
disbursement activities and recovery performance of Dhaka Bank Ltd.
Sources of Data
To prepare this report the required information are collected mainly from secondary
sources. Major sources are:
Annual report of Dhaka Bank Limited
Different text books.
Web browsing
6. Methodology of the Report (cont.)
Instruments used for analysis
Trend analysis: Trend analysis is the analysis of firm’s performance over time using
ration. It is really important to analyze trends in ration as well as their absolute levels.
This analysis informs us whether a company’s financial condition improving or
deteriorating.
Comparative analysis: The item-by-item comparison of two or more comparable
alternatives, process, products qualifications sets of data, system, the like, in
accounting, for example, changes in a financial statements items over several
accounting periods may be presented together to detect the emerging trends in the
company’s operations and results.
7. Overview of Dhaka Bank Ltd.
Bangladesh economy has been experiencing a rapid growth since the 90s. Industrial and agricultural development,
international trade, inflow of expatriate Bangladeshi workers remittance, local and foreign investments in construction,
communication, power, food processing and service enterprises ushered in an era of economic activities. Urbanization and
lifestyle changes concurrent with the economic development created a demand for banking products and services to support
the new initiatives as well as to make channel consumer investments in a profitable manner. A group of highly acclaimed
businessmen of the country grouped together to respond to this need and established Dhaka Bank Limited in the year 1995.
The Bank was incorporated as a public limited company under the Companies Act. 1994. The Bank started its commercial
operation on July 05, 1995 with an authorized capital of taka. 1,000 million and paid up capital of Tk. 100 million. The paid up
capital of the Bank stood at taka.1289 million as on 31 December 2006. The Shareholders’ Equity (capital and reserves) of the
Bank as on 31 December, 2006 stood at tk.2551 million, including the sponsor’s capital of Tk. 338 million. The bank has 37
branches including two Shariah-based branches and an offshore banking outlet across the country and a wide network of
correspondents all over the world. The bank has plans to open more branches in the current fiscal year to expand the network.
The bank offers the full range of banking and investment services for personal and corporate customers, backed by the latest
technology and a team of highly motivated officers and staff. In its effort to provide Excellence in Banking services, the bank
has launched fully automated phone banking service, joined a countrywide shared ATM network and has introduced a
cobranded credit card. A process is also underway to provide e-business facility to the bank’sclientele through online and home
banking solutions.
8. Function of Dhaka Bank Limited
Dhaka Bank Limited performs all types of functions of a modern commercial
bank, which generally includes:
Providing banking services to common people through the branches.
Introduce modern banking service to develop the country.
Various information, guidance and suggestions for the economic
development of the country.
Finance under small business of self-employed clients.
Finance for farming and non-farming activities to rural people including
purchase of agricultural equipment.
Making advances especially for productive activities and for the other
commercial and socio-economic needs.
12. 13468
15401
18062
19563 19866
21545
0
5000
10000
15000
20000
25000
2016 2017 2018 2019 2020 2021
Loan & Advances of DBL
Interpretation: The graph shows that the total Loan & Advances of DBL was
increasing over the years. In 2016 it was Tk. 13468 crore and in 2018 it was
increased to TK. 18062 crore and in 2020 it was increased to TK. 19866 crore.
And in 2021 it was increased to TK. 21545 crore.
13. Credit of Deposit Ratio of DBL
Graphical Presentation:
83.87%
82.64% 82.79%
84.97%
83.28%
78.29%
74.00%
76.00%
78.00%
80.00%
82.00%
84.00%
86.00%
2016 2017 2018 2019 2020 2021
GROWTH
IN
RATE
Interpretation: The line graph shows that the Credit to Deposit Ratio of
DBL was increasing from 2016 to 2021 .But it was little decreased from
83.87% to 78.29% in 2021.
14. Classified Loans
and Advances:
• Graphical Presentation:
54029
92088
90090
92778
62270
71446
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
2016 2017 2018 2019 2020 2021
Classified Loan & Advance (Tk in Crore)
Interpretation: The graph shows that the total classified Loan & Advances of DBL was
increasing from 2016 to 2021. In 2016 it was tk 54906 crore and in 2018 it was increased to tk
90090 crore. But in the year 2020 it was decreases to tk.62270. And in the year 2021 it was
increases to tk.71446 crore.
15. Doubtful as a percentage of
classified loans and advance:
Year 2016 2017 2018 2019 2020 2021
Doubtful (tk in crore) 288 1809 517 198 155 56
Doubtful as a % of classified
Loans and Advances
8.68%
528.13
%
-
71.42
%
-
61.70
%
-22% -64%
Interpretation: The graph shows that doubtful of classified loan & advances was continuously
decreased from 2016 to 2021.In 2016 it was TK. 288 crore and in 2021 it was decreased to TK.
56crore.
16. Bad/Loss as a percentage of classified loans
and advance:
4858
7088 7305
7832
5656
6697
0
2000
4000
6000
8000
10000
2016 2017 2018 2019 2020 2021
BadLoss Amount (Tk in crore)
-50.00%
0.00%
50.00%
2016 2017
2018
2019
2020
2021
21.78%
45.90%
3.06%
7.21%
-28.00%
18.00%
BadLoss % of Classified Loan & Acvance
Interpretation: The first graph shows that Bad/Loss of classified loan & advances was increasing
from 2016 to 2021. In 2016 it was TK.4858 crore and in 2019 it was increased to TK.7832 crore and
then it was decreased tk 5656 in 2020. In 2021 it was increased little bitTK. 6697 crore. The
second graph shows that the growth rate of Bad/Loss classified loan fluctuation over the years
18. Major Findings of the study
Credit disbursement of Dhaka Bank Limited was increased over the year. Growth rate of
credit disbursement was fluctuated and increased over the year, which was a good indicator
of bank credit performance.
Dhaka Bank Limited provided a major portion of credits in Industry (Manufacturing), Trade
& Commerce and Industry (Service). And lower portion of credits in Consumer Credit (small
cottage industries) and Agriculture.
Dhaka Bank Limited disbursed a large portion of credit in Dhaka division.
Classified loan ratio was increased over the year. Bad/Loss loan amount was too much high
in relative to other categories of classified loans and advances.
19. Recommendations
Dhaka Bank Ltd. should try to maintain the growth rate of loans & advances by
providing loans and advances in diversified sectors with attractive terms and conditions.
Dhaka Bank Limited provided a major portion of loans & advances to trade finance,
Large & Medium industrial credit sector. Concentration more in some specific sectors
could cause risks & hamper the sustainability of the bank.
Concentrated credit disbursement of Dhaka Bank Ltd. to some selective division could
endanger the bank’s credit portfolio. So the bank management should provide loans &
advances to all the divisions for balanced economic growth.
Dhaka bank Ltd. should be more concern about controlling the classified loans &
advances. In order to minimize the amount of NPL the bank should provide loans to
creditworthy borrowers and effective monitoring and recovery system should be
developed.
20. Conclusion
• Dhaka Bank Ltd. Continues to play its leading role in banking sector of the country. The success of a bank
depends largely on the efficient credit management. A successful credit management is not only need for a
bank’s own performance but also it is needed for the smooth development of an economy. In any strategy
of economic development, it is essential to emphasize the evaluation of a sound and well integrated credit
management system from the view point of both resource mobilization and efficient allocation of funds.
Credit disbursement of Dhaka Bank Ltd was increased over the year. Dhaka Bank Ltd. should try to
increase the growth rate of loans & advances by providing loans and advances in diversified sectors with
attractive terms and conditions. Dhaka Bank Ltd concentrated credit disbursement to some selective
division could endanger the bank’s credit portfolio. So the bank management should provide loans &
advances to all the divisions for balanced economic growth. Dhaka Bank Limited provided a major portion
of loans & advances to trade finance industrial credit sector. But a lower portion of credit to term loan to
small cottage industrial sector. Concentration more in some specific sectors could cause risks & hamper
the sustainability of the bank. Dhaka bank Ltd. should be more concern about controlling the classified
loans & advances. In order to minimize the amount of NPL the bank should provide loans to creditworthy
borrowers and effective monitoring and recovery system should be developed. Dhaka Bank Ltd. should try
to maintain the adequate level capital adequacy to support its risk weighted assets. By following all the
above suggestion, the bank hopes to achieve a satisfactory level of progress in all areas of its operations
including target of profitability.
