Credit Management of Agrani Bank Ltd.

Abstract

Agrani Bank Ltd. is one of the scheduled private commercial bank in Bangladesh which is established under the banking companies Act 1991. The main motto of this bank is to make profit. One of the most important functions of Agrani Bank Ltd. is collecting deposit and giving loans. Agrani Bank Ltd, like others Commercial Banks, are collecting deposit from clients and giving loans to clients for making Bank’s revenue. The employees of Agrani Bank Ltd. are very sincere about their work. They maintain a protocol to establish a good relationship with existing clients and they are also eager to search new clients. Agrani Bank Ltd. collected a big amount of deposit from clients in every month. I have discussed about loans/ credit management system of Agrani Bank Ltd. in this report. The report has four parts, firstly introducing part, secondly a brief history of Agrani Bank Ltd., thirdly loans/ credit management and lastly findings and recommendations with analysis and references. The objective of Credit management of Agrani Bank Limited is to minimize the risk and maximize banks risk adjusted rate of return by assuming and maintaining credit exposure within the acceptable parameters. The Credit Management department is responsible for upholding the integrity of the Bank’s profile. Credit Management Department of Agrani Bank Limited conducted their functions by six wings. Wholesale Credit, Retail Underwriting and SME underwriting- these three wings of Credit Risk Management assess and approve the loan for the respective customers. Central Collection Unit collects the credit. Special Asset Management wings help the bank to recover Bank’s bad portfolio. The Bank has a team for credit approval. Different tools and techniques are being used to evaluate a credit proposal. Retail Credit, Cards Credit, Authorization and Fraud Control, Central Verification Unit (CVU) are related with retail underwriting. Although Agrani Bank Limited is successfully operating credit management, the Bank should improve in some areas which will take help the Bank to become the leader of banking sector.