The Impact of Credit Risk Management on Banks Profitability: A Study on Rupali Bank PLC, Dinajpur

Abstract

This study examines ―The Impact of Credit Risk Management on Banks Profitability: A Study on Rupali Bank PLC‖ focusing on its Dinajpur branch. Utilizing data from 2012 to 2022, the report analyzes the relationship between key credit risk indicators, such as non performing loan (NPL) ratios and loan loss provisions, and profitability metrics like Return on Assets (ROA) and Return on Equity (ROE). The findings reveal that effective credit risk management, characterized by lower NPL ratios and adequate loan loss provisions, significantly enhances profitability. The study underscores the necessity of robust risk assessment procedures and proactive credit policies, recommending that Rupali Bank PLC enhance its credit appraisal processes and adopt advanced risk management tools to sustain financial performance.