“Analysis of Credit Department of Dhaka Bank Limited”
This report is based on the Credit Analysis of Dhaka Bank Limited (DBL). Internship program is the pre-requisite for the graduation in BBA. Classroom discussion alone cannot make a student perfect in handling the real business situation; therefore, it is an opportunity for the students to know about the real life situation through this program. A report has to be built for the university and organization requirement. The topic of the report is “Credit Analysis of Dhaka Bank Limited”. The main purpose of the report becomes very clear from the topic of the report. The report discusses about the different credit facilities, approval process, monitoring and performance. This report is broadly categorized in six different parts. At First there is prefatory where I describe the banking sector and Bangladesh’s economy along with introduction, objective, scope, limitation and methodology.. The main objectives of the report are identifying the credit approval and monitoring and their overall performance in the last few years. Part one narrates the company profile including Dhaka Bank’s history, their vision, mission and strategy, products and services, activities and performances. Part 2 describes the different aspects of my job at DBL Uttara. Part three forces on the literatures behind banking credit. It includes services of banking sector, different loan categories, and credit analysis, loan review and handling default loans. It also describes in details about the procedure of sanctioning credit, loan documentation, and execution, stamping witness and other legal formalities. It also describes the issuance of different bank guarantees. Findings and analysis of the information are in Part five of the report. It includes outstanding, recovery, and classified loan ratios. Difference between the outstanding and the classified loans in different sectors over the last four years are also analyzed. It also includes the summery of findings. Findings of the report say about the prior and neglected sectors of the credit facilities. It also contains the outstanding, recovery and classified loan status in different sectors over the past few years. The last part ends with competitive analysis, SWOT Analysis, recommendations and conclusions.
History of Banking
Bangladesh inherited its banking structure from the British regime and had 49 banks and other financial institutions before the Partition of India in 1947. The Dhaka Bank established in 1806 was the first commercial bank in the Bangladesh region of British India. Bengal Bank, the first British-Patronized modern bank established in India in 1784, had opened its two branches in 1873 in Sirajganj and Chittagong of Bangladesh region. Later in 1862, the Bengal Bank Purchased the Dhaka Bank and opened its first branch in Dhaka in the same year by reconstituting and merging the Dhaka Bank. Thereafter, another branch of Bengal Bank was opened in Chandpur in 1900. A number of other branches of Bengal Bank were opened in this region and some branches had been closed in Course of time. There were six other branches of Bengal Bank in operation in the territory of Bangladesh until the Partition of British-India in 1947 and these branches were at Chittagong (1906), Mymensing (1922), Rangpur (1923), Chandpur (1924), and Narayanganj (1926). Following the emergence of Pakistan in 1947, Stat Bank of Pakistan, the Central Bank of the country, came into being in July 1948. Later, the National bank of Pakistan, a strong commercial bank was set up in 1949. In all, 36 scheduled commercial banks were in operation in the whole Pakistan until 1971. Pakistanis owned most of these banks and only three of them namely, National Bank of Pakistan, Habib Bank Ltd. and the Australasia Bank Ltd, had one branch of each in East Pakistan in 1949. During 1950-58, there other Pakistani-owned banks, Premier Bank Ltd.,...