Credit Risk Analysis

Topics: Risk management, Debt, Credit risk Pages: 35 (9343 words) Published: March 11, 2013

Introduction on Report

1.1 Origin of the Report . BBA academic program is the building up to the theoretical knowledge about business administration which is the base of practical knowledge. For Example, in our 7th semester we are experiencing about the credit management system of an organization. Our course namely “Credit Management” introduces us how to manage the credit of an organization. For being practical knowledge, we select “Summit Power Limited”. And our key topic of study is “Performance Evaluation and Credit Risk Management of Summit Power Limited.” It was assigned to us by our course teacher, Md. Abdul Mannan. It was a challenge for us to complete a report on such an important topic. But we have completed this report successfully thanks to continuous supervision of our academic supervision Md. Abdul Mannan.

1.2 Background of the study .

This report has been prepared based on Summit Power Ltd. All information is secondary and collected from Internet, Brochures, annual report etc. Based on this information ratio has been calculated. For the calculation of ratio has been calculated to measure the current position of the Summit Power Ltd. At the same time compare with the market performance.

1.3 Objective of the study .

The objective of the report is to provide a clear description of Summit Power Ltd. It also provides an exposure of practices of different activities of Summit Power Ltd. Observing the existing rules for Credit Risk management policy and fulfilling the partial requirement of BBA program is another objective of the report.

We have completed our report on Summit Power Ltd. And this report is about this organization. As one of the main objectives of report is to gather practical experience on credit risk management system, we have tried to put some of the experiences that we have learnt from our report.

1.3.1 Primary Objective:
Primary objective of this report is to measure and analyze the operational and financial performance of Summit Power Ltd. •To analysis the pros and cons of the conventional ideas about credit operation of Summit Power Ltd. •To have better orientation on credit management activities specially credit policy and practices, credit appraisal, credit-processing steps, credit management of Summit Power Ltd. •To analyze the credit risk management system of the Summit Power Ltd. under the guideline of the Bangladesh Bank (BB). •To analyze the credit performance of SPL based on ratio analysis, SWOT analysis, trend analysis and regression analysis.

1.3.2 The specific objectives of this report are –
To present an overview of Summit Power Ltd.
To appraise the performance of Summit Power Ltd.
To apprise financial performance of Summit Power Ltd.
To identify the problems of Summit Power Ltd.
To recommend/ remedial measures of the development of Summit Power Ltd. 1. 4 Scope of the Report . The scope of credit risk management is vast and wide. Basically, this report is composed with two parts: Policy guideline and analysis. The policy guideline part includes the general procedures and techniques of credit risk management and the guideline imposed by the Bangladesh Bank. The analysis part includes how actually the SPL follows and practices credit risk management system. Together these statements give- •A proper and clear idea about the credit risk management techniques. •The practice of credit risk management by the commercial bank of Bangladesh. •Whether the banks are success or not through using the credit risk management techniques. 1.5 Source of information . Information collected to furnish this report is both from primary and secondary in nature. We collected primary information by direct conversation with the credit...
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