Classified Loan Analysis of Commercial Banks: A Study of Five Selected Banks in Bangladesh

Abstract

The internship report has been prepared on “Classified Loan Analysis of Commercial Banks: A Study of Five Selected Banks in Bangladesh” based on secondary data and information. The information has been collected from different sources, such as the annual report, various websites and different journals. For the analysis I have selected five random commercial banks. They are Prime Bank, AB Bank, Bank Asia, Jamuna Bank and BRAC Bank. From individual banks I have calculated the percentages of sub-standard loan, percentage of the doubtful loans and the percentages of bad/loss and their impact on classified loans. After that I have calculated the percentages of classified loan to total loans and expenses. It gave me a scenario of their activities and performance over five years and how the commercial banks are doing in terms of classified loans. From the analytical part I found that, Jamuna Banks percentages of classified loan to total loan are significantly high then other banks. After Jamuna Bank AB Banks percentages of classified loan to total loan are in second position, BRAC Banks percentages of classified loan to total loan are low compere to other four banks. We can also see that most part of classified loans is Bad/Loss followed by Doubtful loans and then the Sub-Slandered loans.