1.1 Foundation of the Report:
MBA program of University of Dhaka, Department of Accounting and Information Systems is organized and tailored to provide the students with the conceptual, theoretical and practical tools of analyses. Special stresses are given on theory and practice them under an organization. Therefore, as an internee I have completed my practice session and prepared this required report based on investigations carried out by me in National Bank Limited (NBL). As an internee student I have tried my level best to cover the contemporary credit risk management system of National Bank Limited in this report. 1.2 Objectives:
Broad Objective: To analyze the Credit Risk Management policy. Specific Objective: To attain the broad objective the following specific objectives will be pursued- * To identify the various types of credit disbursed by NBL. * To analyze the credit portfolio of NBL.
* To get idea about the process of credit management practices of NBL. * To examine the credit disbursement trend of NBL.
* To analyze the credit recovery performance of NBL.
* To analyze compliance with the Bangladesh bank’s guidelines. * Loan disbursement amount and Recovery Position of NBL, Kawran Bazar Branch during the year 2007 to 2009.
1.3 Scope of the Report:
This report has two broad divisions. One is the organization part and the other is the project part. The organization part describes my host organization NBL. The project part deals with the specific assignment that I carried out on my host organization. This specific assignment or the project is to find out the effectiveness of credit risk management policy of NBL.
Sources of information: Both primary and secondary sources of information were used to complete this report. Primary Sources: Primary data and information were collected by interviewing relevant persons at NBL. The interviewed personnel were: Md. Jakir Hossain, Senior Officer, Credit Section, Kawran Bazar Branch. Mr. Md. Sohel Faisal, Vice President& Manager, Kawran Bazar Branch. Secondary Sources: Majority of the data were collected form secondary sources. These sources are * The audited financial statements of NBL for the year of 2007, 2008 and 2009 * Circulars from Bangladesh bank and NBL ‘s head office * NBL ’s manual on credit
* NBL’s training materials
* NBL’s website
To prepare the internship report I have encountered some limitations. The limitations are as follows:- * Some information is very confidential which were not available in the branch office. * Some Bank officers were reluctant to divulge information about their own respective functions. * There were some confidential files where I did not get access. * Time constraint
2.1 An Overview of National Bank Limited:
National Bank is the first private sector bank fully owned by Bangladeshi entrepreneurs. It was established in 1983 by a group of businessmen. At present it is the largest private bank with 121 branches and 10 SME centers spread all over the country. The emergence of National Bank Ltd. in the private sector is an important event in the Banking arena of Bangladesh. When the nation was in the grip of severe recession, Government took the decision to allow in the private sector to revive the economy of the country. Several dynamic entrepreneurs came forward for establishing a bank with a motto to revitalize the economy of the country. The then President of the People's Republic of Bangladesh Justice Ahsanuddin Chowdhury inaugurated the bank formally on March 28, 1983 but the first branch at 48, Dilkusha Commercial Area, Dhaka started functioning on March 23, 1983. The 2nd Branch was opened on 11th May 1983 at Khatungonj, Chittagong. Today NBL has a total of 121 branches all over Bangladesh. The main objective of establishing this bank was to make due...