A case study on credit management challenges of Southeast Bank Limited

Abstract

This paper is prepared as a partial requirement of BBA Program, BRAC University. The objective of this paper is to provide detail information about the challenges of credit sanction and recovering process of Southeast Bank Limited. I have joined Mouchak Branch, Southeast Bank Limited as an intern on the month of May. Southeast Bank Limited is a private commercial bank. It has been founded on March 12, 1995 and the head office is in Dilkusha, Dhaka, Bangladesh. There are pros and cons of every approach to a report. However, this paper covers a very important aspect of Banking Industry (Credit management). The aim of this paper is to identify the challenges of Southeast Bank Limited while giving loans and to investigate those challenges for a depth insight into those challenges. Another important aim of this paper is to identify the challenges of Southeast bank limited while recovering the loan amounts and to recognize the importance of addressing those challenges. In the end of this paper, diagnose the steps that’s been taken to tackle those challenges & to point out the problems/ limitations associated with those steps. Overall, this paper will elaborately discuss the challenges that are most often faced by the respective bank, while they try to invest on their respected clients. Mostly the major problems while sanctioning loans are- unwillingness to provide real information on business, proper documentation, weak recovery system, misuse of investments and so on. There is a big list of problems that are faced by the bank regularly. These challenges are faced not only while sanctioning loans, but also there are some major challenges while recovering those loan amounts. So, this paper will provide significant information about the challenges of the bank and how they tackle those challenges. Lastly, Southeast Bank Limited is working really hard to not to invest on a dead horse by project sights visit, inspecting other documents properly and some other measures that will be discussed in this paper. It is said that- “credit might become problem-credit overnight.” If gradual deterioration in credit quality signals are not detected on time and proper actions are not taken to prevent problem-credit (Rahman, 2015).