Credit Management of Jamuna Bank Limited Introduction:

Bank is an office or institution for the keeping, lending, & exchanging etc. of money. It is also a financial intermediary, a dealer in loans and debts and credit instruments. Bank credit is an important catalyst for bringing about economic development in a country. Jamuna Bank Limited (Banking Company registered under the Banking Companies Act, 1994) started its journey as a private commercial bank on 3rd June, 2001. As a bank of third generation, the bank is facing multidimensional challenges to continue its banking business. Only, efficient human resources management can face the challenges and can bring the bank in the process of continuous development. Training is not only a tool of improving employees efficiency; it also works as a tool of motivation.

Objective of the study

To case out the objectives of the credit in bank industry. To examine the credit operation of bank industry. To examine the impact of credit in the banks profitability. To identify the problems involve in credit management.

Methodology of the study

Primary sources Personal interview Depth interview Observation in the organization. Practical desk task. Secondary sources Annual report of JBL Banks financial statement. Marketing research book. Periodicals. Bulletins.

 MISSION & VISION of JBL

VISION of JBL To be the most efficient bank in terms of customer service, profitability and technology application Managerial Hierarchy of JBL. MISSION The Bank is committed to satisfying diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return, cost reduction and contribution to the development of the country can be ensured with a motivated and professional work-force

Limitation of the study

The data and information related with the topic was not easily available Another important limitation is the shortage of time. Because only a period of two months was available to complete the project. Supply of more practical and contemporary data is another shortcoming.

Credit Management of Jamuna Bank Limited

To place a high priority on the quality of credit exposure, new proposals must meet our credit criteria and existing portfolio should be under constant review for improving risk positions. Growth of the size of customer base through constant alertness towards profitable business opportunity. To be thoroughly familiar with the Banks policies and functions.

Credit Impact
Apartments Auto loans Cell phones Checking accounts Child support enforcement agencies

CREDIT DISBURSEMENT & RECOVERY

Daily fill up first information sheet

Application for loan Collecting CIB report from Bangladesh Bank Feasibility Study Making loan proposal Project Appraisal Head Office Approval & Sanction Letter Disbursement of loan & charge document

Credit Position of Jamuna Bank Limited

For maintaining steady growth rate of the bank and economic development of the country, Jamuna Bank Manages the credit risk properly. Credit position of Jamuna Bank Limited shows belowParticular Total deposits Total Loans and Advances Amount of classified loans during the year Percentage of classified loans against total loans and advance Provisions kept against classified loans Credit Deposit Ratio (%) 2010 46,985,924,645 49,697,705,621 2011 48,730,676,322 39,971,903,240 Change in % 1724 24

1,908,258,498

1,257,504,133

52

3.84

3.15

22

825,217,000

439,468,000

88

87.21

82.03

Return on Equity (ROE) Table 01 : Credit Position of JBL

20.97

22.53

(1.56)

CONCLUSION & RECOMMENDATION

Most major banking problems have been either explicitly or indirectly caused by weaknesses in credit risk management. Therefore any banks must be extremely cautious about its lending portfolio and credit policy. To improve the Credit Management system further, Jamuna bank limited should adopt and implement the following steps: Though JBL has formulated a good credit policy, all the credit officers of JBL are still not familiar with this. So the credit policy should be provided to all credit officers and related officials. Besides, it is also necessary to train them on their credit policy. According to Bangladesh Bank banks should not grant facilities where the banks security position is inferior to that of any other financial institution. This principle should adopt in JBLs credit policy