| dc.description.abstract | This thesis report is based on my thesis program and financial statements of 2020- 2023 of
Sonali Bank PLC. In my thesis period, I worked in Industrial project & financing division,
Sonali Bank PLC, Head Office Dhaka. It was a great opportunity to experience and gather
knowledge about different types of banking operations. My faculty supervisor helped me to
choose the topic- “Credit Risk Management of Sonali Bank PLC”. Sonali Bank PLC is a
Largest Commercial Bank in Bangladesh having the aim of serving the community. Sonali
Bank focuses on a wide range of financial products and services comprising commercial
banking through conventional and Islamic mode, brokerage services, SME agriculture,
consumer banking, credit card and offshore banking. The bank has established leadership in
corporate banking with growing focus on SME and consumer business. It also plays a leading
role in syndicated and structured financing. Sonali Bank has almost all banking products in its
stock from student banking to Business banking. The study not only focuses on the activities
of Sonali Bank but also highlights the credit management system of the bank. It also contains
information about all credit proceedings. In the introduction chapter background, rationales,
scope, objective of the study, the methods used for collecting information, limitations has
been discussed. Moreover, I have focused on the overview of banking industry in Bangladesh
as well as overview of Sonali Bank and its performance. The mission, vision, objectives,
products and services have also been reflected in this report. Then, I emphasized on my thesis
topics, that covering credit risk analysis, how credit risk is measured and the models and tools
available to evaluate it. I have discussed about loans and advances of Sonali Bank Then, I
focused on credit sanctioning system, norms of credit sanction, supervision and monitoring of
credit and the present changes in credit approval system. I have conducted in depth interview
with various officials of the banks to collect necessary information. The findings show that to
reduce the non-performing loans, the bank should select borrowers in respect of their credit
worthiness, capability to repay the loans; credit rating report of the borrower has a vital role
in selection of borrower. In the context of Bangladesh, most of the banks use CRG with few
supplementary tools and their personal judgment to evaluate risk. The study was conducted to
know the credit sanctioning system of Sonali Bank. The banking sector of Bangladesh is
passing through a tremendous reform under the economic deregulation and opening up
economy. Currently, this sector is extremely competitive with the arrival of multinational
banks, technological infrastructure, effective credit management, higher performance level
and utmost customer satisfaction. Sonali Bank followed the credit policy and practices set by
the management and the guideline set by the Bangladesh Bank. As a result, they are
performing well in reducing the high classification rate and achieving the profit target of the
bank. As a part of my EMBA program, I have spent Industrial project & financing division,
Sonali Bank PLC, Head Office, Dhaka and learning the activities of HR Division. I have
analyzed the financial statements of Financial Performance Analysis of Sonali Bank PLC to
find out its ratios by using its past and current records. After preparing this report I came to
know that analysis of financial statements through ratios helps to overcome the past flaws and
make the future decisions and strategies. Therefore, it is very necessary for every organization
whether the company’s size is to make financial statement and to analyze it by ratios | en_US |
