Internship Report on “An Analytical Study on the Credit Performance of Southeast Bank PLC”

Abstract

This internship report has been written in the partial completion of the stipulations of Bachelor of Business Administration (BBA) program at Daffodil International University. The report is entitled “an analytical study on the credit performance of Southeast Bank PLC” and is based on my three months of internship at Dhaka, Bangladesh in the Dhanmondi branch of southeast bank PLC. The main aim of this research is to have knowledge on how the Southeast Bank PLC undertakes its credit practices, the performance of their loans and how they retain the credit risk within the provisions of the Bangladesh Bank. As lending operations are the primary source of revenues and a possible threat to the commercial banks, the report focuses on the manner in which the Southeast Bank is able to record profitability and stability by using effective credit management and a well-developed system of loan monitoring. Both primary and secondary data are used in the study. Primary data have been collected in the form of direct observation, informal interviews with the bank officials, and involvement in credit-related activities throughout the internship. The secondary data were obtained through published documents such as annual reports, research articles and other bank documents. The report gives a summary of the bank lending procedures, credit issuance systems, risk rating structure and recovery of loans. It will also have an analytical discussion of the credit performance of the bank based on major financial ratios and portfolio trends of the last five years. The results indicate that Southeast Bank PLC has been able to sustain strong credit growth and slowly increase the risk management practices. However, other problems like rising non-performing loans (NPLs) and increased requirements in terms of provisioning remain a source of concern to profitability. Recommendations to better the monitoring of loans, accuracy of documentation and better adherence of credit regulations are also given in the conclusion of the report. In general, the internship enabled me to have a fruitful exposure to how contemporary banking works, enhanced my knowledge on credit management, and acquired analytical as well as professional skills that will go into my future career in the banking and financial industry.