Factors effecting the non-performing loans of Bank Asia Limited

Abstract

Financial institutions are investment intermediaries linking the savers and users of fund. These intermediaries interpose between the ultimate borrowers and lenders permitting them efficient transfer of funds. Individuals having surplus funds can lend them for reasonable return to entrepreneurs who need funds to take the advantage of economically and financially viable investment opportunities. Now a day it is completely impossible to think a country without a bank, because banks play a diversified role in the development of an economy. The most important task of bank is building of capital which is the key factor of the development of an economy. Banking sector helps to flourish the industrial sector by supplying the capital of the industries and other services like intermediaries role in case of foreign business. Bank Asia Limited is a scheduled commercial Bank under private sector in Bangladesh established under the Banking Company Act, 1991 and incorporated as a Public Limited Company under the Company Act, 1994 on September 28, 1999. BAL is one of the top performing third generation banks in Bangladesh. This internship report is prepared by me Rishad Jude Adhikary a student of BBA at Brac University, on Factors Effecting the Non-Performing Loans of Bank Asia Limited. It a qualitative report that focus on the overall practice compliance in the organization. In my three months internship period I worked in this department and have come to know about the minute details of how this department works and what are the supporting bodies to it. My detail experience has been shared in this report including the different factors such as, GDP, Interest Rate and Inflation, I have taken to show if there is an impact on the Non-Performing loans. Finally, I have provided suitable findings regarding the laggings and scopes of improvements of this department using my knowledge and overall views of the other members of Credit V Department. I have used the intranet of Bank Asia Limited in this matter along with their financial reports of 10 years, World Development Indicators & Databank. There might considerable lickings in the report due to the limitations of information and lack of time. However, I must assure that I have given my best in preparing this report and live it for further studies.