CREDIT RECOVERY PROCEDURES ON LOAN PORTFOLIO PERFORMANCE IN CENTENARY BANK

Abstract

The general objective of the study was to examine the relationship between loan recovery practices and loan 
portfolio performance of commercial banks in Uganda. Specifically it focused on centenary bank Entebbe 
Road branch.  The researcher used a case study and correlation survey. The target populating was centenary 
bank Entebbe road branch staff and customers. Among the staff included; loan officers, banking of ficers, 
managers, credit Administrators, customer service consultants and management trainees in total this 
population was 120  and the researcher sampled 92 basing on Kre_jcie & Morgan ( 1970) table. The data 
was collected using questionnaires and interviews and analysis was done using regression analysis, and 
correlation coefficients for the quantitative  the findings revealed that credit recovery procedures 
significantly and positively affect loan portfolio performance in Centenary Bank (adjusted R2 =0.780*, p 
value= 0.000).  The researcher recommended that bank should closely watch the reminder strategies, educate 
and sensitize customers and other users of the financial , recruiting recovery officers, adopting group 
recovery policy, facilitating the recovery process and the enforcement, create a department for follow up 
action and carrying out standard loan appraisal, formulate a separate legal department and recovery 
department at each branch, involve LCs chair persons, use guarantors all these will help increase Loan 
Portfolio Performance.