8.

1 FINDINGS
Every bank has its own credit procedure or financial performance. As the objective of my
study is to make a comment on the credit management or financial performance analysis of
Janata Bank Ltd. I tried my best to collect data for the study and find out the reality. Based on
the data generated during my study period I sum up my findings here and I think this will
help me to achieve my objectives.

1. Janat bank limited is following Bangladesh Bank Credit guidelines and policies.
2. a)The credit management of the bank is compliant with the Bank Companies Act 1991.
b)
3. Janata Bank Ltd. has a significant role in long term project financing in both agriculture
and industrial sectors. Again JBL has a deep concern for rural farmers.
4. JBL distribute loans without sufficient security in some cases. This is violation of the
Bangladesh bank order.
5. Janata Bank Limited does not efficient in processing and executing legal actions against
defaulters for their nonpayment of loans and advances.
6. The Financial Performance Analysis indicates an excellent liquidity profitability, and
marketability and leverage position. The bank has good liquidity, high profitability and
sound credit profile.
7. Overall, they are using available resources effectively.
8. The stunning growth position of overall activities shows that, Janata Bank Limited has
more business opportunity in future period.
9. Comparatively Financial Performance of JBL is better than others public Bank of
Bangladesh.

58

8.2 RECOMMENDATIONS
Banking is service oriented marketing; its business profit depends on its service & quality.
Thats why the authority always should be aware about their service quality. Having some
problems in credit procedure and financial activities of Janata Bank Limited, I would like to
propose some suggestions to overcome the problem relating the above mentioned topic which
might be helped to improve the overall credit policy and performance of Janata Bank Limited
regarding credit policy or financial activities.
1. Continuous monitoring of the customer should be conducted so that loan cannot be
classified.
2. Syndicate finance is an excellent idea of modern banking as here risk is assessed by
different banks. This may be extended.
3. Bank should emphasis more on loan diversification.
4. Every day the business environment is changing and so the risk. So the Bank should be
created as a learning organization to adapt the changing circumstance.
5. Loan should not be given without examining CIB report.
6. Name Lending should be discouraged as it involve huge risk in some extend
7. Janata Bank should provide easier Credit system then other competitive Bank.
8. Janata bank can also increase their loan product in different sectors so that they can earn
more profit.
9. The bank should consider the customer complaint. For providing that service, bank can
lunch customer service department which now absent in Janata Bank Limited.
10. The bank should appoint higher expert who can understand economic situation & can
take initiative based on forecast.
11. Janata Bank Limited should always monitor the performance of its competitors in the
field of General Banking.
12. The bank has to include modern technology for the customer service.
13. Political intervention should be avoided while approving and sanctioning loan.

59

8.3 CONCLUSIONS
In todays world of business without banks co operation, it is almost impossible to run any
business or production unit of business. Financial performance or credit risk management
determines the strength of the management and operation. So it is important to know the
financial performance or credit risk policy of a bank.
As an organization Janata Bank Limited has earned the reputation of top banking operation in
Bangladesh. The organization is much more structured compared to any other public
commercial bank in Bangladesh. It is relentless in pursuit of business innovation and
improvement. It has a reputation as a partner of consumer growth. With a bulk of qualified
and experienced human resource, Janata Bank Limited can exploit any opportunity in the
banking sector. It is pioneer in introducing many new products and services in the banking
sector of the country. Moreover, in the overall-banking sector, it is unmatched with any other
banks because of its wide spread branch networking thought the country.
The current situation of Janata bank Limited is satisfactory. But in the age of competition if
the bank does not provide extra ordinary that means superior services than it will be difficult
to continue banking because everybody wants to maintain quality. In loan and advancement
portion Janata Bank Limited has some problem. On the other hand in Ratios liquidity,
efficiency and leverage ratio of Janata Bank Limited is satisfactory which indicates better
position of Janata Bank Limited. But profitability ratio of the bank is not satisfactory so
Janata Bank Limited should take necessary steps to beat the overall problem as early as
possible. And when Janata Bank Limited is able to overcome this type of problem then it
would be more structured compared to any other bank operating local or foreign in
Bangladesh

60

Bibliography
ADB (2001), High Level workshop on Strategic issues and potential response initiative on
finance industry and trade sector ( Dhaka : ADC, November )
Amilad, Y. And Mendelson, Trading mechanism and stock returns, An Empirical investment
journal of finance vol 42, no3 ( july 1987)
Annual report Dhaka bank limited 2012,2013,2014
Berger, A, and udell G.F ( 1990) collateral loan quality and bank risk journal of monetary
economics col 25,pp21-42
Berger,A,,and Udell,G.F.(1995),Relationshif lending and lines of credit in small frim finance,
`Journal of Business,vol.68,pp.351-381
Bhattacharaya S and Chiesa G proprietary information finance intermediation and research
incentives, journal of financial intermediation, vol.4 pp.328-357.
Bolton, P, and scharfsdsdtein D.S (1996) Optimal debt structure and the number of creditors,
Journal of political Economy Vol.104,pp. 1-25.
Chan, Y. and Greenbaum S. I. and thakor A V (1986). Information reusability, Competition
and bank asset quality, journal Banking Finance,. Vol,10,pp255-276.
Degrysw, H., and Van cayseele, P. (2000), Relationship lending within a bank-based system:
Evidence from European small business data, journal of financial intermediation vol.9 and
pp.90-109.
Dewatripont, M., and mask in, E ( 1995) credit and efficiency in centralized and
decentralized economics, review of economic studies, vol.62,pp541-555.
Eugene F, Brigham and Philip r . daves, intermediate financing management, 7 th ed.
(Cincinnati, OH: South Western Collage Publishing,2002)
Hossain,MM.(1995),Job Satisfaction of Commercial Bank Employees in Bangladesh.
Harrison, Tina ( 2000), Financial services marketing pearson education limited.
Mayer,C.(1988),`new
issues
Review,vol.32,pp.1167-1183

in

corpoeat

finance,

`European

61

Economic

Nam, Sang- woo 9 20040 relationship banking and its rone in corporate governance, ADB
institute research paper series, Vol.56. pp. 1-55.
Peterson,M,and Rajan,r.(1995), `The effect of credit market competition on lending
relationshif, `Journal of Economics, vol 110.pp.406-443.
Rajan,R, and Winton,A.(1995),`Covenants and collateral as incentives to montor; Journal of
Finance,vol.50,pp.1113-1146.
Rajan. R. (1995),Insiders and outsiders : the choice between relationship and length debt,
journal of finance. Vol 47,pp.1367-1400.
Sharpe, S. (1990), Asymmetric information, bank lending and implicit contracts: A stylized
model of customer relationships, journal of finance , Vol,45pp,1069-1087.

62