Credit Risk Management of Banks: A Look from NCC Bank Ltd.

Abstract

The report is prepared on the credit department operations and risk management of NCC Bank Limited. National Credit and Commerce Bank Ltd. is a fast-growing private banking firm with extensive experience in both local and international banking. The majority of a bank's revenue comes from loans and advances. The credit department is critical to the bank's growth and profits. Clients, both corporate and individual, have been drawn to the bank's different deposit and credit offerings. After attaining success in all areas of banking operations, the bank has already established a competitive position among its competitors. First, I discussed objectives, scopes, limitations, and sources of data. Like all studies, this report also has certain limitations in its completion. I provided comprehensive information about NCC Bank in the biography of the NCC Bank Ltd. section, including company profile, corporate vision and mission, product and service offerings, and resources. After the organizational overview, the credit management of NCC Bank is explained. Here I focus on different types of loans and advances provided by the bank. Credit policy and credit sanctioning authority are exposed in credit management. I also talked about NCC Bank's credit department's general credit processes and risk and the kinds of challenges that face the credit department of NCC Bank. After that, in the analysis part, I compared the credit performance, revenue, and growth with other competitor banks. Lastly, after analysis, I found some issues regarding credit operations and performance, like a lack of monitoring and a lengthy process of loan sanctioning, and also found that in 2020, banks' performance was poor. I also included some recommendations regarding finding issues, and a conclusion was discussed.