Credit Risk Management Practices should be compiled. Different circulars have been issued for branches for compliances. The circulars and the credit risk manual of Bangladesh Bank can be a useful source of information for preparing credit risk management Manual.
Online Banking is the demand of today’s dynamic world. To facilitate the credit operation system online Banking contributes radically in increasing efficiency. BASIC should establish full fledge online banking as soon as possible.
From personal observation in Branch level banking, loans are deteriorating due to lack monitoring and supervision activities. There should be a separate unit in Loans and advances section named as “Monitoring and Supervision Unit”. Exclusive job responsibilities should be delegated to RM and feed back from his activities should be communicated on daily basis to the Branch in-charge. As a matter of fact, he/she is the Relationship Manager who oversees disbursement of credit to Monitoring and Follow up.
RUPALI is practicing the concept of “Project based lending rather traditional security based lending approach”. Technical team is essential in assessing Engineering aspects of a Project. Most of the project is typically capital intensive and engineering supervision prior to approval of credit is a prerequisite. Head Office should have a technical team under Industrial Credit Division whose exclusive job is to assess the technical matters such as Process know how, specification of Machinery, knowledge of vendors of industrial machinery, installation of machinery, factory layout, and environmental impact assessment etc. The project proposal submitted by the borrowers can be judged from technical point of view effectively if a technical team exists in Head Office. Technical team will supervise all the projects of different branches on need basis.
RUPALI should prepare a comprehensive “Credit Operations Manual” which should be practiced in every sphere of credit activities. A team constituting key individual from different divisions of the Bank will prepare the Manual under direct of supervision of General Manger, Operations and Administration of the Bank. The report will then be sent to Managing Director for further review. Finally, Board of Directors will finalize the Credit Manual. The Credit operation manual should be sent to every Branch for implementation of standard practices set out there. Credit Manual will be updated continually by issuing circulars to Branches.
11.2 Conclusion
As a bank Rupali Bank Limited has to do a lot of things for the betterment of the country. The Bank is strongly positioned in the market and with its core strengths it can match shareholders’ expectations and thus raise their wealth in future through ethical banking and best pricing. Thus, it has to take initiative so that it can fulfill the desire of the govt. as well as people. It will enhance more public services and build up working teams to provide the best services to its valuable customers. It must be run in organized way and discipline must be ensured in all sphere of its performance. Efficient export team, import team and remittance team must be formed and perform duties properly. More training, computerization, data collection, market analysis and swiftness in servicing are essentially required. To do these the recommended suggestions can be used. Although it is theoretical suggestions, it is not valueless. It has great impact on the banking business and other sectors of the economy. For this, govt. help is essential and it is expected that govt. will broaden its hand for implementing the recommendations for the welfare of the people of Bangladesh.
RUPALI is unique in terms of constitution, its mandate, its objectives and modus operandi. Through this The Bank has in the mean time found its own special position in the sector at the higher rack of the self. RUPALI Bank is expected to continue to maintain strong competitive edge in banking sector in Bangladesh in the years ahead. Through Bank’s specialization and integrated approach, The Bank aims to build a strong position in the industrial development of Bangladesh. The Bank also plans to maintain its focus on managing capital and costs to maximize shareholders' value. In this environment, The Bank expects to make further gains in revenue, income and return on capital.
Recent Bank’s performance in different arena of banking strongly suggests that Rupali Bank is one of the soundest banks operating in the country. Although Government of Bangladesh is the sole shareholder of this Bank and the way thinking ahead is quite inspiring. RUPALI is a trend setter in banking industry. Continual improvement in different segment with a proactive attitude can make a difference in the banking business. Online Banking is the demand of today’s dynamic world and RUPALI is heading towards implementation of Online Banking within two years from now.
RUPALI is redefining the traditional banking concepts and transforming it into relationship banking .RUPALI considers the Borrower as clients. The mutual relationship is the essence of long term success in the banking industry. The ever increasing competitive nature of banking business determines the direction of the bank. Sustainability in better performance is the prime focus in RUPALI Bank.