An internship report on credit risk management system of Janata bank limited: an analysis on Mymensingh Notun Nazar Branch

Abstract

Commercial banks lend money to different categories of borrowers for various purposes with a view to generating revenue. Accordingly, while processing and appraising a loan proposal, banks essentially analyze the information relating to borrowers, assess the purposes of loan and determine the viability of the loan proposal. If the proposal is sound and safe for lending, loan is sanctioned and disbursed. The report discusses about the management practices of different credit facilities, approval process, monitoring and performance of the bank under study. This report is categorized in seven different chapters. Firstly, The introductory of the study. Secondly, overview of the organization. Thirdly, Concept of Credit Risk Management. Fourth portion of this report is Credit Risk Management Process. Fifth the classified loans and Bangladesh Bank guidelines. Then the performance of Mymensingh Notun Bazar Branch JBL. Next discussion is the analysis and findings about different variables of Credit facilities. At the end, the report makes some valuable recommendations. Janata Bank Limited is the second largest Government owned Bank. It operates credit facilities for business purpose as well as welfare of the economy. Bank finance at the rural level at a very low interest rate. It has also Special loan procedures for the rural farmers. This helps for the development of the rural economy of the country. As a government owned bank, Janata Bank Ltd. faces different problems for credit facilities. But still it has more transparent Credit program than other government banks. It has improved its recovery program and this provide its operating profit 1244801.16 Crore in 2013 Year. For this research, the branch manager and credit officers of Janata Bank Limited, Mymensingh and Customers were treated as the target population. For survey a total of 12 variables were chosen. For every variable sample size was 10 by following random selection method. The research was a qualitative research. Janata Bank Limited invests more in industrial area than other sectors. It also invests in government selected 15 Trust sectors. It also invests in different project which is much important for the development of the nation’s economy. The analysis of this report shows the trend of deposit collection, approval of loans and advances and net profit of Janata Bank Limited is in upward slope. The regression analysis