Analysis of Credit Management System of Sonali Bank Limited: A Study on New Market Branch, Dhaka

Abstract

Sonali Bank Limited is the biggest government marketable bank in Bangladesh with a total of 1212 branches. Out of them, 466 are located in urban areas, 744 in rural areas, and 2 are located overseas. It also operates the Sonali Exchange Company Inc. in USA and Sonali Bank (UK) Ltd., United Kingdom, to facilitate foreign exchange remittances. Sonali Bank Ltd is one of the commercial banks of Bangladesh. The main intention of the Bank is to provide all of banking services at the doorsteps of the people. This report is projected to focus on the Credit Function of Sonali Bank as well as analysis of their performance in this department. I've collected data's from primary and secondary sources to enrich this report. This report contains several chapters in which I've drawn my study. First chapter is Introduction part; in this chapter I briefly discussed Background, Rationale, Objectives, Scope, Methodology and Limitation of the report. Second chapter Consist of Background of Sonali Bank Limited That is company's profile, mission, vision, logo, ancillary services, organization chart. Third chapter which is Loans and Advances, Here I briefly discussed Loans, Advances, Loan Classification, Procedure of Loan, Loan Documentation, Loan Renewal, Loan Issue, Loan Issue Process, and Loan Recovery of Sonali Bank Limited. Fourth chapter is the most significant part where the credit performance are analyzed in details. After a thorough analysis it is found that the credit performance of Sonali Bank is not satisfactory. Fifth chapterincludessome recommendations based on findings.