Credit evaluation processes on The Premier Bank Limited

Abstract

As an important part of economy, commercial bank plays a vital role to create Capital and Liquidity in our business market. Commercial Bank is a type of Financial institution at the same time it is an intermediary of business. The Premier Bank Limited is one of the leading bank in Bangladesh. I worked on this report with the credit evaluation part of The Premier Bank Limited. We all know that credit risk is the vital risk for any commercial bank. Credit risk arise from the inability or the un-willingness from the borrower to perform pre-committed manner about lending facilities. As credit is one of the key function of any bank, the credit risk management of The Premier Bank Limited minimize the risk and maximize the return adjusted rate by assuming and maintaining credit exposure over time. The Credit Risk Management (CRM) division is responsible to uphold the bank’s risk/return portfolio at the same time to recover bank’s negative portfolio report. There are several teams of the bank who work from the beginning of credit proposal to the credit approval process. After analyzing the risk of credit in different criteria with the help of qualitative and quantitative factors bank take decision of the credit approval. In this report I tried to portray what the various steps taken by The Premier Bank Limited to approve any kind of credit facilities. The report is divided by three parts. The first part represents a short description of the organization, their vision and mission, organizational structure and separated department for separated functions. Second part portrays my purpose behind this internship report, on-cite job responsibilities and how my activities helped to the organization. Finally, I focuses on the last part about the evaluation processes I taught from my workplace while evaluation any credit facilities. Although, The Premier Bank Limited has a very successful ratio to recover their credit but still they should work on some areas to keep the pace among from the leading banks of Bangladesh.