Professional Documents
Culture Documents
Mr. Hamid belongs to a very reach family, he studied and served in London for about
20years, recognizes that his family and social profile is quite rich. He formed a company
and came to the bank for loan. Bank after studying the papers and investigating
sanctioned tk=20 lac loan to the company. But the Company failed miserably and
therefore was not able to pay the installments. Gradually the loan amount accumulated to
tk=120 lacs. In such situation borrower company gave a proposal to the bank for
rehabilitation of the project in expectation to run operations profitably. Bank approved the
proposal, the assets of the company is mortgaged to the bank as security of loan amount.
But The Company failed to make profit, and still the company’s performance is below the
break even. Under this situation the company failed to keep its commitment, and the loan
amount increased to tk=340 lac.
Recommendation:
At first bank should increase its monitoring over the overall activities of the company. If it
does not work then they should try to reschedule the loan with the company, so that the
investment could be recovered in the view of the overall industry is profitable and in growth
stage, therefore proper policy and decision making, could make the Company profitable.
At last but not the least, if these things don’t work, then the Bank should move to the Court
and take Legal Actions for recovery of the loan.