Loan Portfolio Analysis: A Study On The City Bank Limited

Abstract

A bank is a financial institution that is licensed to receive deposits and make loans. A bank might also provide the financial services such as currency exchange, safe lockers etc. The report has been done by collecting secondary data from the annual reports.

The total loans, advances & investments including bills of The City Bank Limited (CBL) are mostly concentrated on loans which are on an average 87%. The loans of CBL show an increasing pattern over the five years. The rest is given as cash credits, overdrafts and bills purchased and discounted. In the case of sector wise concentration of loans, CBL has its loans concentrated mostly to RMG and the consumer credit. In the RMG sector CBL gave, on an average, 17% of its total loans which follows an increasing pattern over the five years. And in the consumer credits, CBL contributed 15% of its total loans which followed an increasing pattern in five years. In case of geographical location wise concentration of total loans in urban area, CBL mostly concentrated to Dhaka and secondly in Chattogram. In Dhaka urban, on an average 80% of the total loans are given which increased at first two years then it decreased for two years. In Chattogran Urban, on an average 12% of the total loans is given which follow a decreasing pattern. The rest is given to the other areas. In case of geographical location wise concentration of total loans in rural area, CBL mostly concentrated to Dhaka and secondly in Chattogram. In Dhaka rural area, on an average 2% of the total loans is given by CBL which shows an increasing pattern in the five years. In Chattogram rural area, on an average 0.5% of the total loans is given by CBL which also follows an increasing pattern in the five years. In case of residual maturity grouping of the total loans, CBL is mostly concentrated to three segments which is 1year to 5years, months to 1-year and lastly less than 3 months. On an average, 32% of the total loans is given for 1-year to 5years which showed an positive trend for the first two years and a decreased pattern for last 2 years. In case of business segment wise loans, CBL is mostly concentrated towards corporate loans which are on an average 51% of the total loans.