Credit Risk Management of Modhumoti Bank Limited

Abstract

Credit risk is a standout amongst the most vital risk for any business bank. Credit risk emerges from the failure of the borrower to pay the portions of the loan routinely. It may rise up out of either a disappointment or a reluctance to perform in the pre-commited, closed way. The genuine hazard from credit is the deviance of portfolio execution from its normal esteem. The credit danger of a bank is moreover affect the book estimation of a bank. The more credit of a particular is in hazard, the more prominent likelihood of a bank to be ruined. Globally, in excess of 50 % of aggregate risk components in Banks and Financial Institution (FI) s are credit risk alone. Therefore overseeing credit risk for proficient management of a FI has bit by bit turned into the most vital task. Credit chance administration incorporates recognizable proof, estimation, planning mitigations, observing and control of the credit chance exposures. This report is planned to aid the reader in definite asses the Credit Risk administration process. It moreover endeavors to get the strategies honed in MMBL in association with credit dealing with. The inspiration driving this report is to have an idea with respect to the credit methodology and hazard Management procedure of MMBL and after that to evaluate its viability. In chapter one, a brief introduction of this report is given. It includes Background of the report, Significance of the Report that was chosen for this study. In chapter second, detailed information about the association with its organization profile, Corporate Vision and Mission, item and administration and assets. In chapter three, It includes statement of the problem, rationale of the study, origin of the study, objectives of the study, scope of the study, methodology that was chosen for this study and limitations faced while preparing this report In chapter four, it’s about Industry Analysis, in this part brief discussion of current banking scenario of credit risk management. Chapter five, discussed about the Credit Risk Management of MMBL. Chapter six includes, Ratio Analysis of MMBL and comparison form 2013 to 2017. Some findings about MMBL in financial analysis part different financial ratio are calculated and analysis the findings. At the last part of the report tried to give some recommendation based on functional data and knowledge for further development in credit and comfort in credit hazard administration and extension of this Bank. The entire framework has been depicted intricately remembering the most vital sections. Besides the diagrams Credit Approval Process and Credit documentation, Credit Risk Grading score sheet incorporate a sensible perception of the structure.