Credit Risk Management of National Bank Ltd.

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CHAPTER–l

INTRODUCTION

Bank is the lifeblood of an economy to keep the wheels moving forward and to play the pivotal role in the economic development of the country. The present economic state of Bangladesh demands immediate development of the financial institutions. Banking sector has lot of areas to improve upon. One of the measures to improve this condition is to introduce tailor made professional programs that are designed to develop the managerial efficiency.

As fulfillment of the BBA program well arranged by Department of Accounting, Faculty of Business Studies, University of Dhaka I had to undergo a one and half months internship program which is a practical orientation stage and will definitely guide to employ the potentials to build up a successful professional career.

After participating in the internship program conducted on National Bank Limited I am assigned to submit a report on “Credit Management: A case study on National Bank Limited”.

The report helps significantly to build a perception about day to day affairs of the bank. This report attempts to describe the functions of a branch of commercial bank and some recommendation for improvement and efficiency of some of those functions.

The prime objective of the study is to find out empirically how a commercial bank carries out the functions of Credit Management.

1.1 Origin of the Report :

The report is an attempt to provide an orientation to real life scenario in which one can observe and evaluate the use and applicability of theoretical concepts that were taught in BBA program. During the internship program, I was assigned to National Bank Limited (NBL) to observe practical applications of my theoretical knowledge. Finally a report with proper analysis and possible solution of the organization needs to be submitted to Professor Mohammad Anisur Rahman, Course Instructor of BBA Program, University of Dhaka.

1.2 Background of the Study :

Academic knowledge is far away from the practical knowledge. It is quite impossible practice all the academic assets in the venality. Sometimes institution is very much effective for managerial decision and also to continue with the ongoing global business trend rather than theoretical aspects, which are learnt in the institutions. On the other hand as the world is becoming abridged with the passes of time due to alarming innovation of modern technology and at the same time people are getting radically danged for sociality and business reasons, it is quit impossible to deal with day-to-day transaction without the extending help of banking sector. In order organization are keeping these factors in mind the NBL had been inaugurated in this section with its committed and quality banking policy on 12 March 1995.

Bank plays an important role in the business sectors and in the industrialization of a country. Basically the banks take deposits from the customers against interest and lend it to borrowers against interest for a cessation period. Under these circumstances of bank offers different interest rates and other options are very common among all the banks, but only the customer services and other facilities very from bank to bank. In our country there are 4 types of bank there are central bank, nationalized bank, private commercial bank (Islamic and traditional) and foreign commercial bank (Islamic and traditional). Here we make an assessment on the general banking and credit work of a nationalized commercial bank called National Bank Limited and lastly a regression line has been developed along with correlation to have an objective oriented output in future.

1.3 Objectives of the Study :

The primary objective of this assignment is to achieve practical knowledge about banking to observe what the basic bank services are. The study is concentrated on policies and Practice of Credit Management Policy of National Bank Ltd. and to detect the type of service that is...
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