Credit risk management of Janata Bank Limited: A study on dhakeswari corporate branch

Abstract

Janata Bank is one of the largest state owned commercial bank of Bangladesh. It was established back in 1972 after liberation war. It was nationalized due to the massive business people around the country and in 2007, the bank was corporatized. Janata bank was born with a purpose to serve the initially growing business and other financial needs of planned economic development of the country. It has already earn the reputation in the banking industry of Bangladesh. The growth of the bank is already visible and it has already established over thousands of branches all over the country. Our country is densely populated and most of the people live in the rural area. A major portion is related to agricultural sectors. Janata Bank Limited has most of their branches in rural areas to fulfill the need of rural people. They encourage the rural people to deposit their money. Through many ways, Janata Bank Limited encourages needy persons to save tiny sums of money. The bank offers a variety of microcredit initiatives, both independently and in conjunction with other organizations. For these credit programs, particularly those aimed at alleviating poverty, to be successful, they must be closely monitored and supervised. Given the Bank's manpower/field employees, extensive monitoring at the grass-roots level is not always practicable. To expedite and cost effectively implement microcredit initiatives, the bank established a linkage scheme through the use of intermediaries/collaborating organizations (GOs & NGOs). Collaborating agencies are responsible for organizing target groups (doing surveys, forming groups, and offering training, among other things), as well as for credit supervision and recovery. There are lots of commercial banks from local and foreign side though Janata Bank Ltd. is one of the finest among them. Janata Bank is competing with multinational banks also in Bangladesh. Because of the contribution towards the economy of the country it has become one of the trusted bank for the people. Janata Bank is investing in potential sectors like import export businesses and giving small loans to the entrepreneurs which is not only helping lower middle class people but also helping the economy of the entire country. Less advance misfortunes implies additional cash from credit activities, and that implies more benefit for Janata Bank Limited, and this is the place where Credit Financing succeeds.