Analysis of Loans & Advances of Brac Bank Ltd

Abstract

This report is about the loans and advances of Brac Bank Limited where the information is based upon my internship experience, some secondary sources such as websites and journals and also on some primary sources. Economic growth is the ultimate goal of economic system and there is a connection between financial development and economic growth. One of the major elements of financial market is banking industry. So the development of banking sector is interconnected with financial development and thus economic growth. Loans and advances provided by the banks to its clients help the clients in their financial distress. Businesses take loan to accelerate its operations and generate profit and the bank also earns interest income and eventually it adds up to the economic growth. In this modern era the banking industry is full of competitive players and each and every bank is working with full potential to keep pace with the diversified market and changing business nature. Brac Bank is a leading commercial private bank that is widely known for its contribution to the development of SME banking in our country. Through its highly diversified distribution channel each and every day BBL is reaching more and more customers and providing one stop banking solution to them. Along with SME banking, BBL is also planning on to ensure sustainable growth in both corporate and retail banking. Thus with the each passing year it is growing its activities accordingly. In the analysis part of the report the overall analysis of the loans and advances of BBL are made. BBL classified its loans according to Business Segment which are- Corporate, Retail & SME. From the analysis it could be seen that in recent year BBL has increased the proportion of corporate loan and decreased the proportion of retail & SME from its loan portfolio. BBL also classifies its loan portfolio based on industry such as-Agriculture, Small & Cottage, Large & Medium, Consumer, and Trade & Commercials etc. from the analysis it could be seen that, BBL has decreased its proportion of loan in agriculture, Large & Medium, Small & Cottage industry. While proportion of loan in Consumers and Trade & Commercials industry has enhanced.