A study on the general banking and credit risk grading on short term loans in Dutch Bangla Bank Ltd.

Abstract

This paper has attempted to highlight on an evaluation of General Banking and Credit Risk Grading (CRG) in the context of Dutch Bangla Bank Limited, Gulshan Branch. Dutch Bangla Bank Limited is among the leading commercial banks of the country. The first part of the report discusses the general services offered in the bank and the whole process it goes through to serve its customers in a well-disciplined manner. I have given my best effort to include all the necessary points in order to give a clear understanding about the General Banking. Lending is one of the principal functions of the bank. Sound lending practice therefore, is very important for profitability and success of a bank. For the sake of sound lending, it is necessary to develop a sound policy and modern credit management techniques to ensure that loans/ advances are safe and the money will come back within the time set for repayment. For this purpose, proper and prior analysis of credit proposals is required to assess the risk. Credit risk grading is one of the basics for risk management and control, as it is the risk factor inherent in every bank businesses and as the quality of credit is essential for sound banking and its reputation. For the effective application of CRG, expertise and willingness as well as motivation of the bankers are needed. And to do that strong criterion must be followed as such in DBBL. This report should be able to give a clear idea about how and what steps a bank has to go through in order to sanction a loan/credit to a company.