Management of non-funded credit facilities: study on Dhaka Bank Limited

Abstract

The report consists of extensive primary and secondary research on Dhaka Bank’s emphasis on their non-funded credit facilities as sufficient research about this issue was not conducted beforehand. From the analysis, it was identified that there are some significant benefits for emphasizing non-funded credit facilities, like fewer restrictions, less risk, no requirement of fund cost, and less chance of NPL. Also, in comparison to some other renowned local banks, it was found out that Dhaka Bank has the highest non-funded credit income, and the ratios analysis relevant to non-funded credit income also supported the findings. However, due to the COVID-19 pandemic, the income from non-funded credit was affected. Despite that, Dhaka Bank’s net profit did not reduce, unlike other banks during the pandemic, as their non-funded income was still more than other banks. Also, despite the setbacks the income has again started to rise due to the necessary measures taken by Bangladesh Bank and for some other factors.