Professional Documents
Culture Documents
Credit Appraisal System and Cost of Credit Management in Prime Bank Limited.
Prepared By: S.M.Abdullah-Al-Mamun. ID# 0211001.
Bachelor of Business Administration.
Methodology
To collect the information used both
Primary Sources.
Secondary Sources.
Request for credit from the client Credit application from filled up by the customers
and collection of documents
Formula:
NCD=
RRI=
Interest Expenses
Average Deposit NCD 1-RR
1. Credit Department. 2. International Trade Finance. 3. General Banking. 4. Computer Department. 5. Top level Executives.
TWHc= Cp
TWHc= Total time given by all the employee for doing all the elements in credit management process.
Total Time for Credit Management:
Here; TTCM = Total time for credit Management. TWHc= Total time given by all the employee of the credit department. TWFFEX= Total working hour employed in the foreign exchange department. TWHcom= Total time given by all the employee of the computer department. TWHpoc = Total time given by the employee responsible for preparing pay order for the credit department.
TWHTE= Total time given by all top-level executive all the tasks in the credit management process.
CTTCM= AS*TTCM
CCM=COF+CTTCM+
Here,CCM= Cost of Credit Management COF= Cost of Fund CTTCM =Cost of Total time employed for credit management. = Other cost
FINDINGS
Approved loan on the basis of documents. Overlooked of total overhead cost. Irregularity of submission of different
performance report. Prescribed appraisal system is overlooked several times. Credit officials rarely do site visits.