“Credit Management System of United Commercial Bank Ltd (UCBL) at Nabinagar Branch”
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The topic of this report is “Credit Management of United Commercial Bank Limited. “The report is originated in the result of my three months internship, which I have done, as requirement of BBA program. The major objective of the report is to analyze the Credit Management of United Commercial Bank Ltd. Some specific objectives are to identify lending procedure and recovery system, growth rate of sector wise and geographical location wise credit and to examine the credit performance of UCBL over the years. To prepare this report I have follow the methodology which mainly contains secondary sources of data. To make this report I had to face some limitation which I include in this report.This report gives us a detailed idea about Credit Operations of United Commercial Bank Limited, its potential and its prospects. It shows brief description of every departments key terms, the entire Credit Operations related topic that would easily understandable about this banks credit and recovery system.Credit analysis is an important part of the report. From the credit analysis we foundthat UCB is giving 24. 69% of credit in Commercial sector and 38.08% credit in Industrial sector. The other sectors like Retail, agricultural and Transport are totally negated. The amount of classified loan in 2013 is 5,985,170,000 which are 4.03% of their total credit; in the year of 2012 the classified loan was 3.69% to its total credit. So it is not a positive sign for bank. Capital adequacy ratio is below standard line. Generally 12% is acceptable but in last five years UCBL capital adequacy was below 12%.UCBL income from credit decreased in 2009 to 2011 but it increased in 2012 to 2013. To solve the problem of credit operations we also gives some recommendations that are the retail department of UCB is needed to be effective and well enough to manage actual and potential customer, Capital adequacy ratio determines the capacity of the bank in terms of meeting the liabilities classified investment is increasing from 2010 to 2013. Generally, 10% acceptable line for this ratio in that senses the bank was good enough to maintain the requirement. Bank should take care about capital adequacy line because it’s below the 12%, there is a chance to bankruptcy and above 10% indicates to decrease profitability. After all we can say that the bank is not now at satisfactory level and UCBL should give concentration to control the classified investment by Continuous communicate with the client and before the disbursement of fund bank should properly check the document of the applied client and other credit risk such as credit risk operation.
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