WELCOME TO

MY
PRESENTATION
Supervised By Prepared By:

Farzana Akhter Name:Arghya Mazumder

ID-20183003101
Assistant professor Department of Business
Department of Business Administration
Administration North Western University,
North Western University, Khulna
Khulna
 Credit management of
standard bank ,Bagerhat
branch
DISCUSSING TOPICS

Objectives

Methodology

Analysis
Findings

Recommendation
Conclusion
 OBJECTIVES OF THE STUDY
 To acquire knowledge of credit management activities in
SBL.
 To identify the factors that must be considered and
analyzed in determining creditworthiness of borrowers.
 To apprise credit management with special emphasis on
credit scoring.
 To analyze the credit performance of Standard Bank Ltd.

 To identify the problems with credit management system

and suggested measures.
 METHODOLOGY
.
 3.1Types of Research
 The report is descriptive types.

 3.2 Sources of Data

 The set of information has been collected from secondary sources.

 Secondary sources are as under:

 Different circulars issued by Bangladesh bank.

 Different circulars issued by credit division of Standard Bank Ltd.

 Credit manual of Standard Bank Ltd.

 Annual reports of Standard Bank Ltd.

 3.3 tools and technique of data analysis

 Ms word,SPSS,frequency mean has been used

 ANALYSIS

Particulars 2014 2015 2016 2017 2018 2019

Total Deposit 4,101.56 5,612.42 8,731.00 12,043.39 14,220.80 19,210.38

Total Advance 3,495.71 4,952.24 7,801.00 10,183.59 12,634.12 17,310.09

Total Classified Loan 18.32 23.11 33.36 46.33 126.80 263.14

Total Recovery 3.70 4.28 5.90 6.20 9.20 11.70

Rate of Classification 3.70% 4.28% 5.90% 6.20% 9.20% 11.70%

 ANALYSIS
12,634.12

Particulars 2015 2016 2017 2018 2019

Growth of Deposit 36.80% 55.60% 38.00% 18.07% 35.08%

17,310.09
Growth of Advance 41.60% 57.50% 30.50% 24.06% 37.00%

Growth of Classified Loan 26.14% 44.35% 38.87% 173.00% 107.50%

Growth of Recovery of
15.67% 37.80% 5.08% 48.38% 27.20%
Classified Loan
ANALYSIS
Agro based 11,552,000 – – 53,326,758 66,100,000
5.1.5 RATE THE AVAILABILITY OF ROCKET POINTS IN TERMS73,700,00
OF CASH IN/CASH OUT
Trading 1,683,912,095 2,424,380,452 3,121,794,429 4,294,166,379 3,470,941,154
5,117,338,00

Real Estate &

Service 202,650,731 288,579,000 352,052,770 412,737,814 511,600,000
 Sector
 2014
 2015
 2016
 2017
 2018
 2019

605,500,00
 Agro based
       11,552,000
                    –
                   –
       53,326,758
       66,100,000
       73,700,000
 Trading
  1,683,912,095
   2,424,380,452
  3,121,794,429
  4,294,166,379
  3,470,941,154
  5,117,338,000
 Real Estate & Service
     202,650,731

Transport 108,403,252 153,579,000 106,885,660 54,778,924 67,900,000

      288,579,000
     352,052,770
     412,737,814
     511,600,000
     605,500,000
 Transport
     108,403,252

851,000,00
      153,579,000
     106,885,660
       54,778,924
       67,900,000
     851,000,000
 Textile
     367,540,000
      742,838,154
  1,404,171,642
  1,386,679,504
  1,079,300,000
  1,507,600,000
 Food & Allied
        9,536,000
  19,809,017.43
       46,805,721

Textile 367,540,000 742,838,154 1,404,171,642 1,386,679,504 1,079,300,000

     132,227,771
     163,900,000
     664,700,000
 Cement & Ceramic
     223,500,000
       17,332,890
       62,407,629
       70,994,776

1,507,600,00
       88,000,000
       64,500,000
 Telecom
                   –
                    –
                   –
     141,666,849
     503,014,126
     871,100,000
 Pharmaceuticals
     125,336,000
       22,285,145
       93,611,443
       77,000,000
     153,500,000
     104,000,000

Food & Allied 9,536,000 19,809,017.43 46,805,721 132,227,771 163,900,000

 Leather, Chamical & Cosmatic
       30,156,000
       47,046,416
     144,317,641
     177,000,000
     275,700,000
     234,200,000

664,700,00
 Airline
                   –
                    –
                   –
     141,666,849
     175,600,000
     406,561,000
 Cold Storage
       24,371,000
       22,285,145
       31,203,814
     635,100,000
       54,491,026
 SME
        8,527,720
         9,904,509

Cement &
  1,170,143,035
  1,720,546,295
  2,132,722,990
  2,000,200,000
 Engineering
    189,687,000

Ceramic 223,500,000 17,332,890 62,407,629 70,994,776 88,000,000



      363,990,695
     284,169,123
       32,996,436
       40,900,000
     356,500,000
 Special Loan
                   –

64,500,00
                    –
                   –
       20,800,000
 Health
       75,892,000
      173,328,903
     232,395,805
       69,381,259
       86,000,000
     155,000,000
 Others
     434,379,104
      666,895,032
     750,994,854
  1,369,329,557
  3,183,841,730

Telecom – – – 141,666,849 503,014,126

  4,222,899,974
  
       3,495,442,902
        4,952,254,358
       7,800,953,565
     10,134,499,171
     12,634,120,000

871,100,00
     17,310,090,000

Pharmaceuticals 125,336,000 22,285,145 93,611,443 77,000,000 153,500,000

104,000,00
 ANALYSIS
Year wise particulars of Loans from 2014-2018 in terms of Security

2014 2015 2016 2017 2018 2019

1) Loans considered good in respect

91.50% 89.32% 86.72% 75.56% 53.73% 65.81%
of which the Bank is fully secured

2) Loans considered good against

which the Bank holds no security
6.40% 7.66% 10.66% 14.74% 46.27% 27.48%
other than the debtors personal
guarantee

3) Loans considered good secured by

the personal undertaking of one or
2.10% 3.02% 2.62% 9.70% 0.0% 6.71%
more parties in addition to the
personal security of the debtors
 ANALYSIS
Year wise particulars of Loans from 2014-2019 in term of Security

o 2014 2015 2016 2017 2018 2019

1) Loans considered
good in respect of
3197.925 4423.1264 6764.16 7694.2748 6788.2482 11391.711
which the Bank is fully
secured

2) Loans considered
good against which the
Bank holds no security 223.68 379.3232 831.48 1500.9742 5845.7518 4756.788
other than the debtors
personal guarantee

3) Loans considered
good secured by the
personal undertaking of
73.395 149.5504 204.36 987.751 0 1161.501
one or more parties in
addition to the personal
security of the debtors
 FINDINGS
 1) Thecompetitive environment in the banking industry in Bangladesh is quite complex. There are
nationalized banks having extensive branch networks, holding huge deposits and enjoying certain
prerogatives. There are leading international commercial bank branches with focused business objectives,
low cost of funds, state-of-the-art technologies and highly skilled human resources. SBL is still in the
process of being fully automated. Highly organized and automated foreign bank branches operating in
Bangladesh pose a threat to SBL’s ability to compete.
 2) Without proper documentation sometimes bank gives loans to renowned personalities, which is a
violation of loan policy of the bank. Bank should disburse loans after completion of all loan
documentation formalities.
 3) Bank sometimes gives much importance on the collateral rather than the character of the party. The
cash generation ability of the business, which is much important for the credit recovery. If a loan get
stuck up then it is very difficult to realize through selling the collateral. Besides it is time consuming
process also.
 4) Availability of skilled human resources are a constraint but that can be removed by focusing on
training and also through recruitment of qualified personnel at all levels on a regular basis.
 5) Lack of monitoring exists at some branches which may causes severe impact on loan portfolio as well
as bank’s asset-liability management. So SBL management must recognize this risk and should be very
careful to avoid any such pitfall through its activities.
findings
 Very often, Branch officer does not visit the project field to check
whether the credit is being used in proper purpose. This should be
avoided and Head Office must monitor at regular interval.
 7) In some branches of Standard Bank Ltd, specific job segregation
is not done. Same officer is preparing the project profile,
maintaining the security, disbursing the credit and involves
monitoring the credit.
 8) Credit administration as per the Bangladesh Bank guideline
(CRM) is not properly implemented. It is very much needed to
implement it without further delay.
 9) Risk in loan portfolio can be diversified away by seeking
profitable ventures and avenues.
 RECOMMENDATIONS
Systematic risk in the form of classified debts originating from the borrowers
end due to their management failure, financial imprudence, unfavorable shift
in the market for their products and services, negative external and
uncontrollable impact on the industry in which the borrower’ s ability to
conduct business as usual. Standard Bank Ltd routinely scrutinizes all its
clients and the associated risks systematically using up-to-date risk evolution
techniques and thereby have been able to contain its asset quality so far. Some
other risks are external to SBL, as they are to any other bank. Being a new
generation Bank, Standard Bank Limited (SBL) has been able to maintain a
very low classified portfolio over the last 9 years of operation. SBL’s present
classified loan portfolio stands at 1.52 % of the total loan portfolio, against an
industry average of around 18.27%. The selection of right and prospective
borrowers, proper loan documentation, timely monitoring and supervision of
disbursed loans make the bank in a financially sound position compared to
other private commercial banks in the industry. The credit risk management
guideline of Bangladesh Bank helped a lot to attain efficiency in credit
management, which is truly reflected in the loan portfolio.
 CONCLUSION
Innovation of any product and services is expanding step by
step. The different parts in Bangladesh are developing at a lot
quicker rate with the assistance of innovation. Mobile banking
is likewise a major versatile media transmission stage of new
innovation, which advances the mobile banking capacities in
Bangladesh. Mobile banking additionally causes the banks to
expand their clients. Today, individuals have somewhere
around a cell phone in their grasp. The quantity of these clients
in Bangladesh got expanded much as of late. The expanding
recurrence of mobile banking clients gives the lift vitality to
the service. This paper investigates the significance of mobile
banking in the new time of innovation which encourages the
mobile banking industry to develop at higher speed.
Thank You