Internet Report on Credit Risk Management of United Commercial Bank Ltd

Abstract

The internship report is titled “Credit Risk Management of United Commercial BankLtd. (UCB)”. It is based on 3 months of practical training in UCB (Narsinghopur Branch) fromApril 5 to July 5, 2025. The study links what I learned at university with practical experience. It examines how one of the largest private commercial banks in Bangladesh manages the risksofcredit to maintain the economy’s stability and development in the long run. The study primarily focused on UCB’s credit management system, that is, howloans areapproved, disbursed, the documentation required from borrowers, how borrowers’ credit worthiness is assessed, the process of monitoring loans, and the classification of loans between2019 and 2023. The research used primary data (obtained from observation, interviewwiththeofficials, and loan papers mentioned in the research question), and secondary data obtainedfromUCBs’ annual reports, Bangladesh Bank (BB) guidelines, and published papers. The findings indicate that UCB possesses strong credit risk management system, which is inlinewith regulatory frameworks and Basel III requirements. The bank is monitoring the credibilityofthe borrower by relying on prudent use of credit risk grading, collateral verification andCIBcheck. The total loans and advances of UCB, meanwhile, increased sub-linearly fromBDT28,991 crore in 2019 to BDT 41,985 crore in 2023. Loans classified as unclassified (whichislogical given that the loan portfolio quality is decent) also increased sharply. But there was alsoaslight uptick in classified loans, now standing at BDT 2,886 crore in 2023. That shows it is still difficult to dispose of nonperforming loans. It was through the internship that I learned that the boring, day-to-day banking relatedtasksofrecord keeping, establishing repayment schedules and making follow up calls to customersactually work to mitigate credit risk. All in all, the internship allowed me to understand more about credit risk management throughthe practical execution. It demonstrated how UCB manages this tension betweengrowthobjectives and enlightened risk management to ensure that it remains both profitableandfinancially healthy. It’s made me better at credit analysis, compliance and risk assessment, andit has also shown me what I want to do in banking and finance in the future