“Evaluation of Credit Assessment & Risk Grading Management of Dutch Bangla Bank Ltd.”

8978 Words Apr 26th, 2012 36 Pages
Chapter 1
1.1 Background of the study:

Credit Risk Grading is an important tool for credit risk management as it helps a Bank to understand various dimensions of risk involved in different credit transactions. Credit Risk Grading Manual of Bangladesh Bank was circulated by Bangladesh Bank vide BRPD Circular No. 18 dated December 11, 2005 on Implementation of Credit Risk Grading Manual which is primarily in use for assessing the credit risk grading before a bank lend to its borrowing clients.

Since the nature of business as well as leverage level of Banks is different from that of other borrowing clients, the need for a separate Credit Risk Grading Manual has been felt. Keeping this in mind and with a view to properly risk rate a
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To identify the implementation, supervision, monitoring and repayment practice- interview with the employee and extensive study of the existing file was and practical case observations were done.

1.7 Limitation of the Report
Though I have given utmost effort to prepare this paper but there are some limitations of the study. They are as follows-
1. This paper has focused on the most sensitive part of the organization i.e. loan and advance. So the bank authority hesitated to disclose important information to maintain business secrecy.
2. Only 3 months time is not enough to complete such a study in a lucid manner.
3. The whole report was prepared on the Shahjalal Uposhohor Branch of Dutch Bangla Bank and so it doesn’t focus the true picture of the Credit Risk Assessment scenario of the whole banking sector in the country.

Chapter 2

Dutch-Bangla Bank Limited (DBBL) is a scheduled commercial bank. The Bank was established under the Bank Companies Act 1991 and incorporated as a public limited company under the Companies Act 1994 in Bangladesh with the primary objective to carry on all kinds of banking business in Bangladesh. The Bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited.

DBBL- a Bangladesh European private joint venture scheduled commercial bank

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