Internship Report on Analysis of Credit Management Functions & Financial Performance of United Commercial Bank PLC

Abstract

The objective of the study is to analyze the credit management function and financial performance of the bank. To fulfill this study necessary data were gathered from both primary and secondary sources. The objectives are divided into general and specific categories. The general objective focuses on evaluating UCB’s overall credit management and financial health. The specific objectives include examining credit disbursement, risk management, liquidity, solvency and profitability.. The study follows a descriptive research approach, utilizing both primary and secondary data. Primary data is collected from UCB officers and customers, while secondary data comes from UCB’s official website, annual reports, office circulars, and other published documents. After collecting and analyzing those data number findings have been revealed of the important findings is loan. The bank's cash credit facility faces challenges due to high interest rates, leading to costly borrowing and increased default risks, which weaken financial stability. Strict collateral requirements restrict small businesses' access to funds, while hidden fees, such as processing and documentation charges, further add to the financial burden, making the facility less attractive to borrowers. The bank faces financial instability due to high loan interest rates increasing defaults and low deposit interest rates discouraging savings, weakening liquidity. So to solve this problem some recommendations are suggested UCB Bank could improve financial stability by lowering interest rates to reduce defaults and easing collateral requirements to support small businesses. A transparent fee structure would enhance borrower confidence, while improved credit risk assessment and financial advisory services would aid loan recovery and customer trust. These measures would boost customer satisfaction and long-term profitability. UCB Bank could lower interest rates to make borrowing more affordable, reducing defaults and attracting more borrowers. Higher deposit rates would encourage savings, enhancing liquidity and customer loyalty. Additionally, leveraging digital platforms for loan applications, customer service, and savings management would improve efficiency and accessibility.