Abstract:
This report comprehensively analyzes the Credit Management of Janata Bank PLC, a
prominent state-owned commercial bank in Bangladesh. Credit management is a critical
function that directly impacts the bank’s profitability, liquidity, and overall financial health.
The primary objective of this report is to evaluate the effectiveness and efficiency of Janata
Bank’s credit management processes, including credit appraisal, disbursement, monitoring,
and recovery.
Janata Bank PLC follows structured credit policies aligned with regulatory frameworks set
by the Bangladesh Bank to minimize credit risk and ensure sound lending practices. The
report examines the bank’s organizational setup for credit management, detailing roles and
responsibilities within the credit department. It also discusses the procedures for loan
sanctioning, including borrower assessment, risk evaluation, and documentation
requirements.
The bank uses traditional and modern tools to evaluate creditworthiness, such as financial
statement analysis, credit scoring, and collateral appraisal. Despite these measures, the
report identifies challenges in credit risk mitigation, such as delays in loan recovery,
inadequate borrower follow-up, and the impact of economic fluctuations on borrowers’
repayment capacity.
Additionally, the report explores the role of internal controls and audit mechanisms in
preventing fraudulent activities and reducing non-performing loans (NPLs). It highlights the
importance of timely monitoring and regular review of loan accounts to maintain asset
quality.
Based on the findings, several recommendations are proposed to enhance Janata Bank PLC's
credit management. These include improving risk assessment techniques through better data
analytics, strengthening loan recovery strategies, increasing staff training on credit policies,
and adopting advanced technology for real-time monitoring.
In conclusion, effective credit management is essential for Janata Bank to sustain its
competitive position in the banking sector, minimize financial risks, and contribute to
economic development by providing reliable financial support to individuals and businesses.
