General Banking & Credit Risk Management of Southeast Bank Limited’

Abstract

This is an internship report prepared by myself for the completion of BBA program. As I have done my internship for a period of 3 months in the Southeast Bank Limited, based on my internship experience I have prepared this report. This report is basically on the topic “General Banking” and “Credit Risk Management”. Analysing the general banking portion, credit policy, financial performance of credit is the main focus of the report. I have used both the primary and secondary sources of data in this report. At first, I have discussed about the introduction of the entire report. After that, the overview of Southeast Bank Limited, the departments, products and services, performance of the bank are described. The activities under the “General Banking” portion (account opening, cash, remittance, pay order, clearing), risk diversifications, credit risk management, principles of credit risk management, classification of loan, loans and advance are explained broadly. The remaining part consists of analysis, findings, problems, recommendation and conclusion. The actual information and working procedures of Southeast Bank Limited are mentioned properly in the report. Southeast Bank Limited is a better private bank in Bangladesh. Generally, people deposit their money in the bank and collect interests on their deposit from the bank. The bank also charges an amount from their deposit. Different business organizations and the individuals seek loans at different times from the bank. Bank provides loans to them and collects interests from the borrowers. This is the income source of the Bank. Whenever, any organization or individual wants loans, the Southeast Bank measures the risk components and other formalities before approving the loan. When all the formalities are completed, the respective officer of the bank disburses the loan. After providing the loan to the individuals and business organizations the next step is recovering the disbursed loan. The Credit Risk Management is a very important and relevant part of a bank. The ‘Credit Risk Management’ of Southeast Bank Limited is widely described under which Credit Risk Management policy, Securities against loans and advance, the procedures for sanctioning loan, Credit administration and Credit monitoring are explained properly for clearly understanding about the bank’s policy & implementation of that policy by different process. In the credit management analysis, it is found that the deposit and the advance ratio of the bank have increased year by year gradually. Besides, total investment, total income has also increased gradually in year by year. So the bank can invest more than before and maximize their profit. The credit distribution of the bank is increasing so far and for that Southeast Bank Limited is getting more ways to increase its revenue. The Southeast Bank is taking essential actions to decrease the bad & loss loan and doubtful loan.