#ARTHA RIN ADALAT AIN 2003 BANGLADESH PDF DOWNLOAD MANUALS#
Bank's reputation is a critical factor for its success and therefore modern banks must follow appropriate guidelines, policies and relevant manuals regarding credit extension and recovery. Their depositors' money, they have even more responsibility to manage their credit portfolio smoothly. Like other financial intermediary, commercial banks also intermediate between the savers and borrower to mobilize the financial surplus of the savers and allocate these savings to the creditworthy borrowers of different sectors of the economy.
Sound lending practice therefore, is very important for profitability and success of a bank. Lending comprises a very large portion of a banks total activities. The principal function of the bank is to lend. To this consequence Pubali Bank Ltd has established its own credit policy to guide them in achieving their target of maximum value addition through an efficient and effective credit risk management. So, Banks and Financial Institutions have high exposure to credit risk. Credit Risk Management process permits the banks to proactively manage loan portfolios in order to minimize losses and earn a satisfactory level of return for shareholders. As such, credit portfolio not only features dominant in the assets structure of the Bank, it is crucially importance to the success of the Bank also. The failure of a commercial Bank is usually associated with the problem in credit portfolio and its less often the result of shrinkage in the value of other assets. A prudent bank management should always try to make an appropriate balance between its return and risk involved with the loan portfolio. On the other hand, loan is also the major source of risk for the bank management. Loans comprise the most important asset as well as the primary source of earning for the banking financial institutions. In achieving the aforesaid objectives of the Bank, Credit Operation of the Bank is of paramount importance as the greatest share of total revenue of the Bank is generated from it, maximum risk is centered in it and even the very existence of Bank depends on prudent management of its credit portfolio. Credit Risk Management of Pubali Bank Limitedįinancial institution like Bank is committed to provide high quality financial services/ products to contribute to the growth of the country through stimulating trade and commerce, accelerating the pace of industrialization, boosting up export, creating employment opportunity for the youth, poverty alleviation, raising standard of living of limited income group and overall sustainable socio-economic development of the country.
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