Report.Doc

1.1 Introduction

Bank is committed to provide high quality financial services/products to contribute to the growth of the country through stimulating trade and commerce, accelerating the pace of industrialization, boosting up export, creating employment opportunity for the youth, poverty alleviation, raising standard of living of limited income group and overall sustainable socio-economic development of the country. In achieving the aforesaid objectives of the Bank, Credit Operation of the Bank is of paramount importance as the greatest share of total revenue of the Bank is generated from it, maximum risk is centered in it and even the very existence of Bank depends on prudent management of its credit portfolio. The failure of a commercial Bank is usually associated with the problem in credit portfolio and its less often the result of shrinkage in the value of other assets. As such, credit portfolio not only features dominant in the assets structure of the Bank, it is crucially importance to the success of the Bank also.

Bank can lend upto 84% of the total amount of its total time and demand liabilities. The rest 16% is kept as Statutory Liquidity Reserve (SLR) with Bangladesh Bank. But in practice banks do not lend the whole 84% and a certain portion is set to meet up the day-to-day banking operations and also meet up the liquidity requirement of the depositors. Bank can lend upto 15% of its paid up capital without the approval of Bangladesh Bank but above that level approval from Bangladesh Bank is required.

1.2 Origin of the Report

The internship report is a basic requirement for the BBA program. The proposed topic is “Credit Policy And Risk Management A Case Study On Bank Asia Limited”. The topic is assigned by Mr. Azharul Islam, Asst. Vice President & Sub Manager of the Corporate Branch and supervised by Dr. Laila Anjuman Ara assistance professor Southeast University.

1.3 Objectives of the Report

The objectives of the study are as follows:...