Professional Documents
Culture Documents
On
Credit Risk Management of Jamuna Bank Limited
By
Raqibul Hasan
3-10-18-016
A Project Report
Submitted to the
Department of Management Studies
of
UNIVERSITY OF DHAKA
DHAKA 1000
JANUARY, 2013
i
A Study
On
Credit Risk Management of Jamuna Bank Limited
Submitted by
Raqibul Hasan
3-10-18-016
Submitted to
UNIVERSITY OF DHAKA
DHAKA 1000
JANUARY, 2013
ii
FORWARDING OF THE SUPERVISOR
iii
ABSTRACT
This project paper is aimed at evaluating the credit risk management policy of Jamuna
Bank Limited. Credit lending is the core activity of a bank. And risks are associated with
every steps of credit. That is why; there is a process to minimize the risks which is called
the credit risk management policy.
Jamuna Bank Limited is a third generation progressive bank. The report will focus on the
study of ‘Credit Risk Management’ in Jamuna Bank Limited. The basic objectives are to
provide the necessary and standard principles of credit risk management, figuring out the
various types of risks which are closely related with credit lending, and probable measure
to be taken to improve the policy. To exploit the study purpose, both primary and
secondary data were collected. For collection of primary data, a self administered survey
questionnaire was prepared, and a questionnaire survey was conduct upon the credit
officers of 20 branches. For secondary data, Credit Risk Management Manual,
Bangladesh Bank’s Guidelines, various credits related publications and journals were
used.
The report describes a brief discussion on credit risk management policy at pre and post
stages credit lending. The questionnaire discovered many important aspects of credit
lending, as well as discovered some weak points of risk management at Jamuna Bank
Limited. At the ending part of the report, these weak points were discussed and
recommendations were given about how to develop the credit risk management policy of
the bank.
iv
ACKNOWLEDGEMENT
Professor Dr. Md. Sirajul Islam, Department of Management Studies, Faculty of Business
Studies, University of Dhaka, who guided and contributed to this work through his ideas,
Mr. Motiur Rahman Patwary, First Executive Officer, Credit Risk Management Division,
Jamuna Bank Limited privileged me with necessary information. Without his cooperation
it might not be possible to organize this report. I am also thankful to my colleagues who
participated in the survey of questionnaire for the collection of primary data regarding
Finally, all praise to Almighty Allah for giving us the strength and courage.
RAQIBUL HASAN
v
TABLE OF CONTENTS
Abstract iv
Acknowledgement v
List of Figures ix
List of Tables ix
Abbreviations x
TITLE PAGE
CHAPTER 1: INTRODUCTION
1.1.Background of the Study 1-2
1.2 Statement of the Problem 2
1.3 Objectives 2
1.4 Significance of the Study 3
1.5 Limitations of the Study 3
CHAPTER 2: RESEARCH METHODOLOGY
2.1. Questionnaire Development 4
2.2. Population Parameter 4
2.3. Sample Design 4
2.4. Sampling Method 5
2.5. Data Collection Method & Instrument 5
2.6. Data Processing and Analyzing 6
CHAPTER 3: CREDIT RISK MANAGEMENT:
CONCEPTUAL FRAMEWORK
3.1. Introduction 7
3.2. Definition of Credit Risk & Credit Risk Management 8
3.3. Credit Risk Management Policies & Strategies 9-20
3.3.1. Credit Risk Identification 11
3.3.2. Credit Risk Measurement 12
3.3.3. Credit Risk Assessment 12-17
3.3.4. Credit Risk Monitoring 18-20
3.3.5. Credit Risk Control 20
vi
CHAPTER 4: ORGANIZATIONAL PROFILE:
JAMUNA BANK LIMITED(JBL)
4.1. Company Overview of JBL 21
4.2 Mission & Vision 21
4.3 Product Profiles 22
4.4 Competitive Status 22
4.5 Trends of Performance 23
4.6 SWOT Analysis of JBL 24-25
vii
CHAPTER 7: CONCLUSIONS & RECOMMENDATIONS
7.1. Conclusions 73
7.2. Recommendations 74-75
Appendix 1 75-76
Appendix 2 77
Bibliography 78
viii
List of Figures
Page
List of Tables
Page
ix
Abbreviations
CC Cash Credit