CREDIT RISK MANAGEMENT OF JANATA BANK LIMITED (PANCHAGARH BRANCH, PANCHAGARH)

Abstract

Bank is a financial institution that is contributing toward the development of any economy and is treated as an important service industry in the modern world. Bank is considered as blood of modern economy. Economic history shows that any development in nation is significantly correlated with banks. This report is prepared as requirement of MBA in Agribusiness program. This report is done based on my sixteen weeks internship in Janata Bank Limited (Panchagarh Branch, Panchagarh). Janata Bank Limited (JBL) is the second largest state owned commercial bank. Janata Bank Limited runs its business with 911 branches across the country including 4 overseas branches in United Arab Emirates. An internship program is very important & essential for acquiring experience through learning and spreading the scope of Knowledge. This internship report is aimed at providing a comprehensive picture to the areas of Credit Risk Management of Janata Bank Limited. From the study the reader will get a clear picture of overall credit performance of both Janata Bank Limited and Panchagarh Branch, Panchagarh. In Analysis part, the report shows risk and ratio related to credit management, Janata Bank Limited is gradually developing but Panchagarh Branch, Panchagarh with a higher ratio is at a vulnerable situation. In 2015 Return on Credit (ROC), Return on Total Assets (ROA), Return on Equity (ROE), Advance Deposit (AD) of Janata Bank Limited are 8.07%, 1.42%, 17,79% and 65.29% respectably which is quite well. In this report the CAMELS rating show that Janata Bank Limited capital adequacy is 12.60% which is Strong, asset quality is 5.62% which is at satisfactory level, level of earnings is 1.43%, which is strong, level of liquidity is 19.33%, which is fair and bank rating 1.8% which also is at satisfactory level. So, it can say that, Janata Bank Limited performance is sound. This internship report is aimed at providing a comprehensive picture to the areas of “Credit risk management of Janata Bank Limited” and a pinpoint analysis of credit risk of the both Janata Bank Limited and Panchagarh Branch. At the end, the report makes some valuable recommendations based on the findings which may help the bank to remove their many shortcomings.