| dc.description.abstract | The banking industry has been known to provide lending to support activities of Corporate,
businesses as well as individuals. This loan offered by bank is derived from shareholders whose
interest is simply to make profits. This makes banks key role to be lending and making a margin
from funds lent so that it can provide a return on investment for the shareholders.
It has been difficult for banks to play this role with ease as the market is bedeviled with risks, risks
which cannot be fully mitigated. The credit risk departments of the bank try as much as possible to
offer calculated risks and come up with a proper analysis of anyone who wants to borrow.
However, at the end of the day, banks still struggle with bad debt which leads to growth of nonperforming
loans (NPL) of the bank. If NPL is not tamed, a bank can go under.
The importance of debt collection strategies comes into play to mitigate risks related to the lending
activities of the back. Various operational strategies are employed by banks and NIC Bank as
highlighted in this research paper. In order to meet the objectives of the study, data was collected
through personal interview of those involved in debt recovery and the credit risk department who
are involved in the credit approval process.
This study seeks to study operational strategies that banks can put in place to ensure the NPL
portfolio is kept at check through establishing operation strategies to debt recovery by NIC bank.
In conclusion it was noted the operational strategies employed by NIC bank were effective and
should be emulated by other banking institutions to reduce the growth of the NPL portfolio. | en |
