Credit risk management of Sonali Bank Limited

Abstract

This report has originated as a result of my internship which I have pursued as a requirement of the MBA program, BRAC University. This report has been completed based on my four month internship program at Sonali Bank Limited, Principal Office, Ramna, Dhaka. The objective of this study is to analyze the credit performance, credit policies and client’s perception and satisfaction toward the performance of Sonali Bank Limited regarding credit. To prepare this report both primary secondary sources data have been used. Apart from this a questionnaire was constructed and survey was conducted on 25 Client of the credit department of the five Branch of Sonali Bank Limited under Principal Office, Ramna, Dhaka.The first section of this report consists of an introductory part of the knowledge and working experience gained during my internship at SBL. The remaining part consists of analysis, findings, recommendations and conclusion. SBL is one of the leading public banks in Bangladesh. To serve the nation Sonali Bank performs certain activities for their client such as general banking, giving loans and advances, capital market operations etc. The bank collect deposits from the public and provides it to other businesses or individuals as loans .The bank pays interest to deposits to holders takes interest from borrowers. SBL measures all risk components before sanctioning a loan. When all the formalities are completed, the respective officer disburses the loan. After the loan disbursement, it is the duty of the bank to recover the disbursed loan. This report is based on actual information and working procedures practiced at SBL. The overall credit management of SBL has been analyzed to give a clear idea about the policies of SBL the implementation of those policies by various mechanism and procedures. Alongside this, a questionnaires survey was carried out to gauge the level of customer satisfaction regarding the performance of various aspects of the credit department of SBL and the result have been thoroughly analyzed though various methods. In conclusion, it can be said that honestly, reliability, thoroughness and willingness to be open to new ideas and new ways of meeting customers’ needs are most important factors for improvement and success of SBL.