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Executive Summary
Internship Report on “A Study on Loan Portfolio Management bank of Ceylon”. This report is based on “A Study on Loan Portfolio management of Commercial Bank of Ceylon, PLC: An Evaluation” that is made from experience of working in Credit Admin Department of CBCL. At present, In Bangladesh Banks and Financial Institutions facing some problems especially in credit management as a result some banks are at the verge of ruin because of their huge non-performing and classified loans.
Therefore, banks are becoming very competitive as various kinds of services and products launched and availed by financial institution are increasing with rapid growth due to in such a small market where 57 Banks and more than 33 NBFIs are chasing too few customers. People and corporate need money to accommodate their livelihoods as well as upgrade with the present status of living; therefore, people and corporate take Loan and advances from the bank anytime during their life this loan amount which is funded by pooling money from public saving in exchange of interest.
| Report Title : | A Study on Loan Portfolio Management bank of Ceylon |
| University Name : | BRAC University |
| Submitted To : | Dr. Salehuddin Ahmed |
| Submitted By : | Md. Jannat Fakir |
| Total Page : | 45 |
This is why all banks including commercial bank mobilize and channelize their funds with great cautious. This report focuses on different loan portfolios funded and provided By Commercial Bank of Ceylon. The main objectives of the report are identifying the different types of loan portfolios and their overall management and performance in the last few years. Both primary and secondary sources of data have been used to materialize this report.
The first part of this report is organization part which covers organizational overview including its brief history from date of inception, mission, vision, activities, core business and last five years highlights. Second part of the report is project part that covers introductory part which includes introduction, objective, scope, limitation and the rest of the report encompasses literature review, methodology, analysis, findings, recommendations, conclusions and references.
Summary of Ceylon Bank PLC.
The Commercial Bank of Ceylon PLC (CBC) has been a significant player in Bangladesh’s financial sector since 2003, offering a comprehensive range of services tailored to meet the needs of diverse customer segments. Leveraging its rich legacy and global expertise, the bank has established itself as a trusted partner for individuals, businesses, and institutions in Bangladesh.
CBC operates a robust network in Bangladesh, including 11 branches, 6 SME centers, 2 offshore banking units, and 1 sub-branch, strategically located to ensure accessibility for its clients. The bank employs approximately 340 to 500 individuals in Bangladesh, contributing significantly to the local employment landscape. Its workforce is dedicated to delivering high-quality banking solutions, ensuring a seamless customer experience.
The bank serves a wide array of clients, including individual customers, small and medium-sized enterprises (SMEs), and large corporations. It offers a comprehensive portfolio of services, such as deposit accounts, loans, trade finance, credit cards, and digital banking solutions. CBC has also carved a niche in trade finance, supporting businesses with expertise in letters of credit, guarantees, and other cross-border transaction services.
Over the years, CBC has earned a reputation for excellence in Bangladesh, consistently recognized as the Best Foreign Bank in Bangladesh. It holds a high credit rating of AAA (long term) and ST-1 (short term) from CRISL Bangladesh, reflecting its financial stability and superior service quality. Its innovative offerings, such as internet banking and mobile banking platforms, have further strengthened its position as a leader in the financial services industry.
Through its extensive network, experienced workforce, and commitment to innovation, the Commercial Bank of Ceylon continues to play a pivotal role in Bangladesh’s banking industry, driving growth and delivering exceptional value to its clients.
Key Features:
- Corporate and Retail Banking: Provides comprehensive services like personal loans, corporate banking solutions, and credit cards.
- Digital Banking Services: Includes internet and mobile banking platforms to enhance customer convenience.
- International Presence: Operates in countries like Bangladesh, Maldives, and Myanmar, alongside a growing presence in global financial markets.
- Innovative Offerings: Known for introducing technologically advanced banking solutions, such as e-passbook apps and automated banking machines.
- Corporate Social Responsibility: Actively engages in initiatives like education support, environmental sustainability, and community development.
Achievements:
- Recognized as one of the most awarded banks in Sri Lanka for its excellent customer service, financial performance, and innovation.
- Regularly featured in lists of the world’s top 1,000 banks by publications The like Banker.
Key Activities in Bangladesh:
- Branch Network:
- Operates multiple branches strategically located in Dhaka, Chattogram, and other major cities to ensure accessibility for clients.
- Provides fully-fledged banking services, including deposit accounts, loans, and trade finance.
- Corporate and SME Banking:
- Offers tailored solutions for corporates and SMEs, such as working capital financing, project loans, and trade services.
- Plays a vital role in facilitating international trade through services like export and import financing.
- Retail Banking Services:
- Provides personal banking products, including savings accounts, fixed deposits, and personal loans.
- Issues credit cards and other payment solutions to enhance retail banking convenience.
- Digital Banking Initiatives:
- Focuses on internet banking and mobile banking platforms for seamless banking experiences.
- Introduced advanced technological solutions to ensure safe and efficient transactions for customers.
- Trade Finance Expertise:
- Specializes in letters of credit (LCs) and guarantees, supporting local businesses engaged in international trade.
- Maintains a strong correspondent banking relationship network for smooth cross-border transactions.
- Contribution to Economic Development:
- Supports development projects in Bangladesh through financing and advisory services.
- Actively collaborates with industries like textiles, manufacturing, and infrastructure.
Recent Financial Statement of The Commercial Bank of Ceylon:
The most recent financial statements of the Commercial Bank of Ceylon provide a snapshot of its performance in 2024:
Key Highlights:
- Profit Growth:
- Net profit for the first quarter of 2024 reached LKR 10.8 billion, marking a growth of 147.95% compared to the same period in 2023.
- Profit before tax stood at LKR 16.7 billion, reflecting an increase of 148.28%.
- Interest Income and Margins:
- Net interest income increased by 45.97% to LKR 27.7 billion, driven by reduced interest expenses and higher CASA (Current Account and Savings Account) ratios.
- Net interest margins improved significantly, reaching 4.22% in Q1 2024 compared to 3.32% in 2023.
- Loan and Deposit Performance:
- The loan book grew by LKR 20 billion in Q1 2024 to LKR 1.316 trillion.
- Total deposits decreased marginally by 0.33% due to currency revaluations but showed a 5.8% growth over the year.
- Asset and Equity Positions:
- Total assets were valued at LKR 2.616 trillion as of March 2024, slightly lower due to currency impacts.
- Equity improved with retained earnings growing by over 100%.
- Capital Adequacy:
- Tier 1 and total capital adequacy ratios were 11.37% and 14.87%, exceeding regulatory requirements.
- Bangladesh Operations:
- The Bangladesh segment contributed to overall performance, though specific figures for the division were not highlighted separately in this report
Recognition in Bangladesh:
- Known for its high standards of customer service and operational efficiency.
- Well-regarded for facilitating trade and investment between Sri Lanka, Bangladesh, and other international markets.
