An Analysis of the Credit Management of Sonali Bank Limited

Abstract

Sonali Bank Limited monitors the procedures and instruction arranged by the Bangladesh Bank. To manage credit Management activities, Bank put on credit restrictions to its clients and gets acceptable collaterals. Credit management in the Sonali Bank Ltd.'s portfolio is practical and investigated by the Credit Management Activities (CM). Sonali Bank Ltd. has recognized Liability Management Group to checker the extreme risk contact. Management guidelines of Bangladesh Bank and realized new money agreement. Sonali Bank Ltd. regularly observers, reviews and evaluates its credit group to minimalize probable losses and ensure efficient credit process. To achieve the Non-Performing Finances (NPL), Sonali Bank Ltd. has an inclusive corrective management policy. Credit management Activities assessment is done by analyzing borrower, industry, demand/buyer, ancient financial statements etc. Bank reviews documents like loan applications, financial statements, market status, to study credit risk. Manager has to enquiry about loan candidate. the basis of inquiry, the branch manager motivation makes a credit report as per preparation if by their head office. Sonali Bank Ltd. Kallayanpur Branch is where I did my internship. Loan and advances are authorized according standard procedure. The specific branch purchaser loan and SHBL are most standard. Credit management Activities is rather low. Rescue rate is 100% in consumer loans and SHBL. Performance of other loans is also good. Such as maximum of its credits are linked only to two kinds of loans, its credits are not well expanded. So it faces credit attention risk. As it is a rural branch chance for authorizing large scale or industry loan is very limited. Record of the credits are added to Sonali Bank general account. To know the effectiveness of CM practices, I considered some key aspects which include Process of credit management activities in Sonali Bank, Credit Management follows in Sonali Bank, the credit administration met by the bank and Methods used to mitigate credit risk. I found the Credit Management activities practice of Sonali Bank Ltd. is quite worthy. However, the credit sanctioning procedure is quite extended compared to today's business world. Regular and appropriate inspection and suitable certification are tried to be preserved. Scams like "Hall-Mark" exposed major softness in top management. The bank should stress on reducing the classified and non-performing credits by concerted efforts. Filing has to be dealt with meaning and Salary scale should be studied.