Credit management Of NRB Commercial Bank Limited

Abstract

The report is originated as a result of my internship program that I have completed as a requirement of MBA program of BRAC Business School. This report is solely based on my internship experience of three months at Harirampur Branch of NRB Commercial Bank Limited. This report contains practical working experience of different tasks in the Credit Department of NRB Commercial Bank Limited, Harirampur Branch. The objective of this study is to scrutinize the credit management of NRBC Bank comparing to two other contemporary banks. To prepare this report different sources of data have been used. The first section of this report consists of a review part which has been developed for the appropriate implementation of the full report. Later parts have described the working experience of my internship period at different departments of NRB Commercial Bank along with analysis, findings, recommendations and conclusion. NRB Commercial Bank is one of the leading private banks in Bangladesh which started its journey in 2013. To serve the nation, NRB Commercial Bank performs some activities for their clients like general banking, loan and advance, capital market operation etc. Bank pays interest to deposit holders and takes interest from borrowers. NRB Commercial Bank measures all risk components appropriately before authorizing a loan and when all the formalities are finalized then the respective credit officer disburses the loan to the client. Afterwards, it is a mandatory duty of the bank to monitor the disbursed loan. After completion of analysis, it is found that NRBCB credit policy is quite lengthy & interest rates are quite high comparing to its contemporary competitors. However, Banks creditdeposit ratio is increasing yearly. As a result, bank can invest and utilize more funds to maximize their profit in near future. After NRBC’s inception in 2013, for the first time its nonperforming loan was 0.27% of its total loans in 2015. Still, which is lesser than that of NRB Global Bank and NRB Bank ltd.