Analysis of credit risk management of Janata Bank PLC.

Abstract

The internship report titled “Analysis of Credit Risk Management of Janata Bank PLC” serves as a condition for the Bachelor of Business Administration (BBA) degree program. The research study examines Janata Bank PLC credit risk management systems through a three-month internship at the bank. The research investigates Janata Bank PLC credit policies and customer perceptions of bank performance and financial performance under credit initiatives. The research used survey data from 16 clients through questionnaires and combined this with primary and secondary data sources. The first chapter of this report introduces Janata Bank PLC through its historical development and organizational framework and establishes the research goals and methods and states the study's boundaries. The report demonstrates that proper credit risk management serves as a fundamental requirement for banks to achieve financial stability and maintain sustainable growth. The second chapter of this report examines the credit risk management systems which Janata Bank PLC operates. The section explains credit policies and eligibility standards and approval procedures and credit processing and administration and monitoring and recovery systems. The bank follows Bangladesh Bank regulatory guidelines to reduce credit risks and protect its asset quality. The third chapter examines financial performance data which periods from 2019 to 2023. The research evaluates five essential banking performance metrics which include total loans and advances and Return on Equity (ROE) and Non Performing Loan (NPL) ratio and credit to deposit ratio and net profit. The analysis shows that loans and advances continued to grow while profitability experienced instability and asset quality improved from 2020 to 2022 but NPLs increased during 2023 because of economic difficulties and operational problems. The research in Chapter Four examines survey results which came from customer and employee responses. The survey results show that customers choose Janata Bank PLC because of its competitive interest rates and its status as a government-owned bank. The survey results show that customers are unhappy with both the length of time it takes to process loans and the fees they need to pay. The fifth chapter of this report presents the main research findings which show loan expansion and profit stability issues and increasing non-performing loans during the last year and service delivery problems. The sixth chapter presents recommendations to enhance credit risk management systems and boost customer service speed and develop better recovery systems and adopt contemporary banking systems. The report establishes that Janata Bank PLC maintains a dominant market position yet needs ongoing development to achieve lasting success and enhanced operational performance.