Credit Management Practices of Dhaka Bank PLC

Abstract

This report is titled “Credit Management Practices of Dhaka Bank PLC. This report examines how DBL manages its’ lending operations, measures the borrower risk and complies with the Bangladesh Bank guidelines. This report provides DBL’s history, operations, major products and recent financial trends which denotes the bank’s stable growth over that years. The key aspect of the report is to analyze the overall credit management practices in Dhaka Bank. The full credit management cycle includes 12 steps from loan application to credit appraisal to the disbursement and post-disbursement monitoring. The Bangladesh bank’s CRM guidelines create proper segregation between all the functions. This branch uses various tool to measure the credit worthiness of the client. The Financial Ratios of DBL show a mixed performance. Their liquidity hence remains strong. On the other hand their NPL and LDR shows different picture which encompasses their conservativeness towards credit approval. Their ROA and ROE both have declined over the years. Their LAR and LDR suggests their strict approach. This internship experience provided me a practical exposure towards the day to day activities of banking, account opening, check and card distribution, customer service and a limited knowledge around the credit management practices. This internship experience enhanced my practical on how to handle real world workplace situations. It taught me to perform under pressure while having the attention to detail. It also helped to be more patient towards my work. Overall, this report gave me a clear look towards the commercial banking sector of Bangladesh.