CREDIT RISK MANAGEMENT OF NATIONAL BANK LTD

Executive Summary

Banking is topic, practice, business or profession almost as old as the very existence of man, but literarily it can be rooted deep back the days of the Renaissance (by the Florentine Bankers). It has sprouted from the very primitive Stone-age banking, through the Victorian-age to the technology-driven Google-age banking, encompassing automatic teller machines (ATMs), credit and debit cards, correspondent and internet banking. But the credit risk management activities has been a vicinity of concern not only to bankers but to all in the business world because the risks of a trading partner not fulfilling his obligations in full on due date can seriously jeopardize the affairs of the other partner.

The axle of this study is to have a clearer picture of how National Bank Limited (NBL) manages its Banking Activities. A brief overview of NBL is given in the first part. In this light, the study in its second part gives a background to the study, its objectives, scope, methodology, limitations, and the literature review of credit risk management. It includes the theoretical review on bank, interest and profit, investment pattern and data analysis and findings. In the last section that includes some recommendations about the problems found in data analysis and NBL is the leader in its industry. NBL has a variety of product offering to its customers.

Finally  I  have  gone  through  my  own  assessment  regarding  their  operation.  I have also given some recommendation in that assessment that may improve the operation of NBL in Bangladesh in future.



Acknowledgement

It gives me immense pleasure to thank a large number of individuals for their cordial cooperation and encouragement who have contributed directly or indirectly in preparing this report.

Firstly, I would like to express my gratefulness to Almighty Allah who has enabled me to pursue my study.

I convey my gratitude to my honorable supervisor, Mr. Nur Hosain Md. Ariful Azim, Assistant Professor, Faculty of Business Administration, Southeast University for his guidance and co-operation, which helped me immensely to prepare this report.

I would like to also express my gratitude to Mr. Muhammed Nizam Uddin, Senior Asstt. Vice President & Head of Branch, National Bank Limited, Pragati Sarani Branch for giving me the opportunity and appointment and lastly certifying the internship program that I have completed.

Special thanks to Md. Abul Khair, Officer, Md. Toymum-ur-rahman, Executive Officer; Pallab Sikder, Executive Officer and Sharmin Akter Executive Officer, National Bank Limited, Pragati Sarani Branch.  It is them who made it easy for me to understand and encouraged me a lot during my internship program.

And last but not the least; I would like to thank all other wonderful personnel working in National Bank Limited, Pragati Sarani Branch.