Evaluation of loan product marketing and risk management process of BRAC Bank Ltd.

Abstract

BRAC Bank Limited is a scheduled commercial bank in Bangladesh. It was established in Bangladesh under the Banking Companies Act, 1991 and incorporated as a private limited company on 20th May 1999 under the Companies Act, 1994. BRAC Bank Ltd is a bank of new generation as its one step ahead from other banks not only in making profit but also to serve people in an effective way to meet customer needs and demand. The bank was launched some attractive products and services that show their deed orientation toward marketing philosophy. BRAC Bank, for the first time among local commercial banks, starts providing loan facilities to small and medium trading, manufacturing and service oriented enterprises all over the country. I have been working in this bank since August 2009. Throughout the period, I had been working in branch banking but to prepare my internship Research report I had to know and collect information from the concerned departments of Head office. The report comprising with introductory chapter, organizational overview and Loan Products and Risk Management Process of BRAC Bank Ltd which is the main part of the report. Any study has objective and on the basis of that objective the work has to be completed. To accomplish, required objective was to study in a particular sector related with that objective and to follow a disciplinary way to present the study in the best way. For the fulfillment of the objective, different drawbacks had to face during various times of the study. All such information related with my study included in the overall report. Although, I am officially appointed to work in the Branch Banking department but the report will reveal the background of the company, description of the loan products, findings and recommendations based on the experience gathered. The overall report is based on my observations in to the credit division of BRAC Bank Ltd. Lending is one of the principal functions of the commercial banks. Sound lending practice is therefore very important for profitability and success of a bank. For the sake of sound lending, it is necessary to develop a sound policy and modern credit management techniques to ensure that loans/advances are safe and the money will come back within the time set for repayment. For this purpose, proper and prior analysis of credit proposals is required to assess the risk. The core competence of the BRAC Bank ltd is to provide the fastest loans to the clients in the banking industry. To retain this competitive advantage BRAC Bank is trying to reduce collateral securities than other banks. It provides more collateral free secured loans to capture the market.