The Credit Analysis of Private Commercial Banking Sector of Bangladesh: A Case Study on BRAC Bank PLC

Abstract

This internship report has been prepared as a mandatory requirement for the completion of the Bachelor of Business Administration (BBA) program at Sonargaon University (SU). The core objective of this report is to bridge the gap between theoretical knowledge and practical business operations by observing and analyzing the real-world activities of a leading financial institution. The study focuses specifically on "The Credit Analysis of Private Commercial Banking Sector of Bangladesh: A Study on BRAC Bank PLC., Narayanganj Branch." BRAC Bank PLC. is one of the fastest-growing and most prominent private commercial banks in Bangladesh, renowned for its strong corporate governance and pioneering role in SME financing. The Credit Department is the most vital organ of any commercial bank, as lending is the primary source of revenue but also the primary source of risk. Effective credit management is essential for maintaining a healthy balance sheet and ensuring sustainable growth. This report is structured into several comprehensive chapters. It begins with an overview of BRAC Bank PLC., detailing its corporate profile, mission, vision, and the specific operational activities of the Narayanganj Branch. The core of the report dives deep into the credit appraisal process, outlining how the bank assesses borrower risk (using the 6 Cs of credit), the loan sanctioning workflow, and the various credit facilities offered to corporate, SME, and retail clients. Furthermore, the report analyzes the financial performance of the credit portfolio, touching upon aspects such as loan disbursement, recovery rates, and the management of Non Performing Loans (NPLs). Based on practical observations and a brief survey of client satisfaction regarding the loan process, the report identifies both the strengths and weaknesses of the current credit operations at the Narayanganj Branch . Finally, the report concludes with strategic recommendations aimed at minimizing credit risk, reducing loan processing times, and enhancing overall customer satisfaction, ensuring that BRAC Bank maintains its competitive edge in the dynamic banking sector of Bangladesh.