CREDIT RISK MANAGEMENT- A CASE STUDY OF RUPALI BANK LIMITED, ZONAL OFFICE, DINAJPUR

Abstract

This study of Credit Risk Management– A Case Study of Rupali Bank Limited, Zonal Office, Dinajpur is an attempt to indicate the importance of credit risk management in financial institutions such as commercial banks. Thus, the rationale behind for undertaking this study is to judge the causes of credit management problems and to suggest the possible solutions that enable the bank to run its operation in a safest way as credit is known to be the main stay of all banks. The ability of banks to formulate and adhere to policies and procedures that promote credit quality and curtail non-performing loans is the means to survive in the stiff competition. Inability to create and build up quality loans and credit worthy customers leads to default risk and bankruptcy as well as hampers economic growth of a country. However, little work is done to search the ways and means that enable to quality loan creation and growth as well as to determine the relationship between the theories, concepts and credit policies both at country or regional level. The main objective of the study is to make a thorough review of tools and techniques of credit risk management practiced in RBL as suggested by the relevant bodies and experts under the leadership of Bangladesh Bank. For the purpose of the study both primary and secondary data were used. Descriptive statistical tools are used in analyzing the data collected. Hence, the nature of the study is descriptive. Finally, based on the findings possible recommendations are given. These include the issues impeding loan growth and rising loan clients complaint on the bank regarding the valuing of properties offered for collateral, lengthy of loan processing, amount of loan processed and approved, loan period, and discretionary limits affecting the performance of credit management