credit risk mgt-dbbl
TRANSCRIPT
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1
BRAC UNIVERSITY
INTERNSHIP REPORT ON
Evaluation of Credit Assessment Ris! "radin"mana"ement of #ut$% Ban"la Ban! &td'(
Su)ervised B*+
Suman Paul C%o,d%ur*
Senior &e$turer
BRAC Business S$%ool
BRAC Universit*
Su-mitted B*+
As%fa. /ustafa An,ar
I# 0 12314354
#ate of Su-mission+ 1673575131
2
&etter of Transmittal
#ate+ 1673575131
Suman Paul C%o,d%ur*
Senior &e$turer
BRAC Business S$%ool
BRAC Universit*
Su-8e$t+ Su-mission of Internee Re)ort'
Dear Sir,
It is a great pleasure and privilege to present the internship report titled Evaluation of
Credit Assessment Ris! "radin" mana"ement of #ut$% Ban"la Ban! &td (which
was assigned to me as a partial requirement for the competition of BBA Program.
hroughout the stud! I have tried with the "est of m! capacit! to accommodate as much
information and relevant issues as possi"le and tried to follow the instructions as !ou have
suggested. I tried m! "est to ma#e this report as much informative as possi"le. I sincerel!
"elieve that it will satisf! !our requirements. I however sincerel! "elieve that this reportwill serve the purpose of m! internship program.
I am grateful to !ou for !our guidance and #ind cooperation at ever! step of m! endeavor
on this report. I shall remain deepl! grateful if !ou #indl! ta#e some pan to go through thereport and evaluate m! performance.
$! effort will "e reworded onl! if it adds value to the research literature.
As%fa. /ustafa An,ar
I# 0 12314354
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%
&etter of Endorsement -* t%e Su)ervisor
To 9%om It /a* Con$ern
his is to certif! that, As%fa. /ustafa An,ar & a student of BBA program, $a'or in
$ar#eting, Department of B(A) Business School, and B(A) *niversit!+ has completed
the internee report titled Evaluation of Credit Assessment Ris! "radin"
mana"ement of #ut$% Ban"la Ban! &td (successfull! under m! supervision.
I wish ever! success in his life.
Supervisor
+++++++++++++++++++++++++++++++++++++
Suman Paul C%o,d%ur*
Senior &e$turerBRAC Business S$%ool
BRAC Universit*
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A$!no,led"ement
-irst of all I would li#e to than# all mightil! Allah for giving me the patience and proper
time to complete the internship stud! successfull!. It is pleasure to ta#e this occasion to
than# a few people who have, assisted, encouraged directed and supported through out the
internship program.
I heartil! than# all the officials of the Dutch Bangla Ban# limited, Shantinagar Branch for
their supporting as well as co+ operating me as an intern in their organiation.
After that I especiall! than# to our manager sir AB#U&&AH A& :A;EE and m!
supervisor/AHBUB
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Ee$utive Summar*
his paper has attempted to highlight on an evaluation of Credit Assessment andCredit
Ris! Dradin" =CRD> in the conte5t of Dutch Bangla Ban# imited, Shantinagar Branch.
Dutch Bangla Ban# imited is among the leading commercial "an#s of the countr!.
ending is one of the principal functions of the "an#. Sound lending practice therefore, is
ver! important for profita"ilit! and success of a "an#. . -or the sa#e of sound lending, it is
necessar! to develop a sound polic! and modern credit management techniques to ensure
that loans6 advances are safe and the mone! will come "ac# within the time set for
repa!ment. -or this purpose, proper and prior anal!sis of credit proposals is required to
assess the ris#. )redit ris# anal!sis is one of the "asic to ris# management and control, as it
is the ris# factor inherent in man! "an# "usinesses as the qualit! of credit is critical to
sound "an#ing. -or the effective application of )(A, e5pertise and willingness as well as
motivation of the "an#ers are needed. B! removing the road "loc#s of )($ and )(0
implication through the recommendations mentioned in this paper Dutch Bangla Ban#
imited can open a new horion to "etter assess the ris#s for lending "an#ers and will
"ring the accounta"ilit! in financial sector
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Ta-le of Contents
Page no8
itle Page 1etter of transmittal 2
etter of 9ndorsement "! the Supervisor %
Ac#nowledgement
95ecutive summar! 4
a"le of contents 7+:
C%a)ter 3+ Introdu$tion ;+12
1.1 Bac#ground of the stud! ;1.2 (ationale of the stud! ;
1.% Statement of the Pro"lems 1
7.2 -*)I=S =- )(04>
7.% *S9 =- )(0 4>
7. @= = )=$P*9 )(0 4:+4;
CHAPTER +
INTERPRETATION O; CRE#IT RIS:
7
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CHAPTER + ;indin"s Anal*sis 7+7>
7:.1 -indings
7:.2 (9)=$$9DAI=S
:.% )onclusion 74+77
BIB&IODRAPHY 7>
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C%a)ter 3
3'3 Ba$!"round of t%e stud*+
)redit (is# 0rading is an important tool for credit ris# management as it helps a Ban# to
understand various dimensions of ris# involved in different credit transactions. )redit (is#
0rading $anual of Bangladesh Ban# was circulated "! Bangladesh Ban# vide B(PD
)ircular o. 1: dated Decem"er 11, 2
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5'F /ission
Dutch+Bangla Ban# imited engineers enterprise and creativit! in "usiness and
industr! with a commitment to social responsi"ilit!. EProfits aloneF do not hold a
central focus in the Ban#Gs operation& "ecause Eman does not live "! "read and "utter
aloneF.
5'4 Vision
Dutch+Bangla Ban# dreams of "etter Bangladesh, where arts and letters, sports and
athletics, music and entertainment, science and education, health and h!giene, clean
and pollution free environment and a"ove all a societ! "ased on moralit! and ethics
ma#e all our lives worth living. DBBGs essence and ethos rest on a cosmos of
creativit! and the marvel+magic of a charmed life that a"ounds with spirit of life and
adventures that contri"utes towards human development.
5'2 Core O-8e$tives of #ut$%
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5';eatures of #ut$%
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5' S$9 Ban#ing + he purpose of the loan ma! "e Seasonal -inancing of inventor! or
rade (eceiva"le or "oth to the "usiness entit! ature of Business holesalers,
$anufacturers 6 Assem"lers and (etailers of machiner!, accessories, agricultureitems, etc oan Amount $a5imum C. 4
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1>
2. on+(esident -oreign )urrenc! Deposit Account -)D3
%. (esident -oreign )urrenc! Deposit Account (-)D3
. )onverti"le and on+)onverti"le a#a Account4. )onverti"le and on+)onverti"le a#a Account
7. on+(esident Bloc#ed a#a Account.
' Cor)orate Ban!in"+ Dutch+Bangla Ban# offers a wide range of corporate "an#ing
services. he! include8
H Pro'ect finance.
H or#ing )apital finance
H S!ndications / Structured finance
H rade finance
H 9quit! finance
H Social and 9nvironmental Infrastructure financeH )ustom electronic+"an#ing pro'ects
' #e-it 7 Credit Cards
Dutch+Bangla Ban# provides the de"it and credit card facilit! to their customer.
6' Internet Ban!in"+
DBB allows customer to do seamless internet "an#ing. his allows !ou to review
account, statements, pa!ing "ills as well as ma#ing some transactions. Because of local"an#ing regulations, DBB is not allowed to provide some t!pes of transactions even
though it is full! capa"le.
Com)etitors+5'6 BRAC Ban!? Standard C%artered Ban! &td? Ban! Asia
5'31 Cor)orate Culture
Dutch+Bangla Ban# imited DBB3 is one of the most disciplined Ban# with a
distinctive corporate culture. In this "an#, it "elieves in shared meaning, shared
understanding and shared sense this "an#, it "elieves in shared meaning, shared
understanding and shared sense ma#ing. h e People of "an# can see and understand
events, activities, o"'ects and situation in a distinctive wa!. he! mould their manners
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and etiquette, character individuall! to suit the purpose of the Ban# and the needs of
the customers who are of paramount importance to them. he people in the Ban# see
themselves as a tight #nit team6famil! that "elieves in wor#ing together for growth.
he corporate culture the! "elong has not "een imposed8 it has rather "een achieved
through their corporate culture.
5'33 Produ$t Servi$es Information
DBB+9*S )lassic )ard de"it3
DBB+9*S $aestro card de"it3)ard Products8
DBB+9*S $aestro card de"it3
DBB+9*S Silver =D card credit3
DBB+9*S 0old =D card credit3
rul! =nline Ban#ing
ide range of A$ / P=SI Products8
Internet Ban#ing
S$S / Alert Ban#ing
)lean )redit ines8
(etail Ban#ing Products8 o cash securit!, o personal guarantee.3
DBB ife ine8
-rom the "as#et of ife ine, DBB is
offering a complete series of credit facilities
for individual service holders, professionals
and self+emplo!ed person.
@ealth ine8
@ospitalisation or other emergenc! medical
needs& opurchase "od! fitness equipments.
9ducation ine8
-or @igher education purposes8
uition fees
Professionals ine
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Purchase of Professional equipments&
-or =ffice renovation6decoration
$arriage ine
o meet marriage e5penses for himself6herself
$arriages in the famil!
ravel ine8
-or @one!moon trip, a"road or in the countr!
-or -amil! trip, a"road or in the countr!
-estival ine8
o en'o! festive period
0ift for the famil! 6 in laws 6 relatives
Dreams )ome rue ine8
o purchase ?, -ridge, -urniture, @ome
heatre, $otor )!cle, A) etc.
o decorate6renovate own @ome6)ar(etail Ban#ing Products8
)are ine8
oan for fulfilment of parents need6dream
o purchase econom! car for the famil! i.e.
to purchase low cost second hand car3
0eneral ine8
An! other legitimate purposes which do not
fall under the a"ove specific lines
Auto ine8
Secured )redit ines o purchase a new 6 re+conditioned car
fle5i"le facilit! with minimum securit!3 (efinancing of availed car
@o me ine8 o purchase a flat
(efinancing of owned house propert! @ome
renovation
95tension 6 construction of "uilding
-ull Secured ines 8
oans for famil! e5penses
An! other valid purposes
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2 5435F35GG'F6
/id term =,it% in t%ree to t,elve mont%s> 5526G315'1
&on" term =,it% in one to five *ears> 512F1312'F
&on" term =for s)e$ials )ur)ose
/ore t%an five *ear> 52G5665'F1
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47
C%a)ter+
;indin"s Anal*sis
'3 Anal*sis+
Strongl! Agree either Disagree Strongl!
SU Agree 23 Agree 3 DisagreeVuestions 13 nor 43
noDisagree
%3
F 6 5 1 31 DBB increasing the economic and politicalenvironments through long term "usiness
opportunities.
F 2 2 3 32 (etail product loan3 creates enough satisfaction.
3 F F 1% 0ood num"ers of retail products loan3 are offered"! DBB.
F 2 G 1 3 DBB retail loans offer minimum pricing structure.
3 2 5 14 DBB offer to customers > Processing fees .>4O of DBB smart loan forcustomers which are afforda"le.
6 2 1 1 3: (epa!ment s!stem comforta"le for customers"ecause of auto de"it installment from customersG
deposit account.
F 2 1 1; )ustomers satisfied with DBB smart S$9.
5 G 2 5 11< 1%O interest rate on term loan, ver! cheap forcustomers.
F 3 5 311 DB B gives customers afforda"le offer for termloan to purchasing motor vehicle interest rate onl!
14O
5 4 5 G 312 )ustomers satisfied with cash overdraft )=D3,securit! must "e 2.4O of loan amount
F 6 3 3 31% )ustomers satisfied with DBB auto linerepa!ment tenor 12 to 7< months3.
1 F 2 11 )ustomers give %
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condition
1 6 4 5 114 DBB clean credit line interest rate 1>.4
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4:
'F RECO//EN#ATIONS
he Ban# can organie more training program and wor#shop to ma#e the
emplo!ees more efficient in their sector.
he Ban# has to esta"lish a strong E)redit $anualF.
he Ban# has to go through "ac# ground investigation of all part!Gs.
All the loan documentations have to done honestl!.
All the document verifications have to done "efore loan sanction.
he Ban# has to construct a long term strong investment polic!.
he oan and Advance section has to ma#e strong and the emplo!ees have to
"e devoted to the Ban#.
he Ban# has to give emphasis the S$9 loan section.
he Ban# should introduce more loan section.
Con$lusion
It goes without sa!ing that credit polic! cannot "e isolated from the "roader monitor!
polic! of the countr!. i#e an! other segment of the economic polic!, credit is ver!
important for an! financial institution as it generates profit and gear up economic
activities of the countr!. In other words, credit is "usiness and it is input in the production
process of the countr!. Since credit has an inherent ris#, therefore proper utiliation of the
loans are essential to meet the requirements of the "orrower. he loan applied for "! the
"orrower must not "e emplo!ed for unproductive purpose. In this regard, the Dutch
Bangla Ban# td. must closel! follow the progress of the loan and the wa! the "orrower
4:
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is utiliing the funds. In this wa! the Dutch Bangla Ban# td. will deter an! fraudulent
activities on the part of the "orrower.
)redit evaluation s!stem of Dutch Bangla Ban# td. is ver! length! process. It has "een
revised time to time in response to the respective circular of Bangladesh Ban#. he
overall credit activit! of Dutch Bangla Ban# td. is composed of corporate credit division
and credit administration.
he credit management s!stem of Dutch Bangla Ban# td. is more or less effective as
recover! position of classified loan is high and classified loan has "een decreasing
graduall! during the !ear. he! alwa!s tr!ing to improve their credit polic! for
minimiing loss and ma5imiing profit and various measures are underta#en to develop
the credit management s!stem.
=verall, Dutch Bangla Ban# td. fairs ver! highl! in the e!es of the clients as can "e
seen from the frequenc! distri"ution "rea#down given in )hapter >. his means that the
Dutch Bangla Ban# td. is well W placed to further increase their presence in the credit
mar#et and thus increase their profits in the future.
BIB&IODRAPHY+
1. Article , *)PD), I)) Pu"lications 4