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8/13/2019 Credit Risk Mgt-DBBL

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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


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

+++++++++++++++++++++++++++++++++++++


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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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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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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'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

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