Exploration on special asset management and loan defaulter of IDLC Finance Limited

Abstract

In the perspective of Non-banking, financial history of Bangladesh IDLC Finance is the largest financial institution. Special Asset Management and Consumer Division of IDLC Finance established as one of the beginning divisions and play a vital role apart from the all departments. SAM became one of the pioneer department of the institution with its brunches and departments along with skilled and experienced employees. Main role of Special asset management (SAM) team is to handle the assets of Consumer Division strongly. SAM and credit risk management (CRM) department of IDLC finance limited works together always. Sustaining the reward above the risk is the main purpose of these two departments of IDLC. The main role of SAM is to ensure the collection of the money where the money is overdue or normal with a very efficiently and effectively. SAM is responsible to build a cost effective Collection process, which is risk free, pro-active, and information based monthly amount of collection. This report contains a descriptive study of Special Asset Management of IDLC Finance and some major issues of Non-Performing Loan. In addition, report also tries to find out how Special Asset Management works relatively with the Consumer Division of IDLC Finance Limited. Moreover, report also shows the challenges, recovery plan, and observed present development of the Special Asset Management. Some statistical illustration of the performance of SAM also elaborates on the report. The main rationale of this report is to find out effectiveness and efficiency of the policy and strategy of SAM through analyzing the NPL growth relating with the financial industry in Bangladesh. During the internship program, I got the opportunity to work closely at SAM and assigned to prepare a report. While preparing the report lots of challenges I faced and tried to construct this report with the amount of resources I had. The report contains a comprehensive explanation about Special Asset Management of IDLC Finance. It also explores to explain the overall guiding principles and course of actions of SAM and its competence descriptively and figuratively. I have built-in some findings, regarding on the issue of NPL. Lastly, some recommendations also given for any further research regarding this topic.