Credit Management Practice of Private Commercial Banks -A Case Study on Mercantile Bank Limited and National Credit and Commerce Bank Ltd.

Abstract

Banking sector of Bangladesh is one of the major sectors, which contributes significantly to the national economy. The sector comprises a number of banks in various categories. Considering ownership the sector can be classified in to four major categories - such as Nationalized Commercial Banks (NCBs), Specialized Banks (SPBs), Private Commercial Banks (PCBs), and Trans-National Banks (TNBs). Mercantile Bank ltd and National Credit and Commerce Bank are the modern private commercial bank operating in Bangladesh. It has over the years created one of the largest networks among all the other banks in Bangladesh. Although a trendsetter in offering a various ranges of products in the market, the product offers by they are quickly imitated by competitors. In this report I tried to analyze the credit risk management process of MBL & NCCBL. Behind the success of the bank they efficiently analyze the credit risk and the other risk and handle the risk in such a way that brings them the success. The First part of the report I discuss about the background of the study, the literature review and the research methodology of the report. In the background of the study there is statement of the problem, rationale of the study, scope of the project and the objective of the project. Second part of the report I discuss about the organization overview, mission and vision of the organization, goals and objectives, its operations and performance of the bank at a glance etc. The Third part of the report I have analyzed the topic as a hole about the credit risk, different types of credit risk and the credit risk management process of the bank. At the Fourth part I discussed about ratio analysis with the comparison between two banks of the last five years and SWOT analysis on them. The Fifth part of the report I discuss about the major findings of the report and the literature review with analysis.