Haguma, Monica Mbabazi M2024-10-292024-10-292015-10Haguma, M. M. M. (2015). Loan portfolio management and the financial performance of commercial banks case study: orient bank.https://hdl.handle.net/20.500.12504/2126Various pagings ;The research was carried on loan portfolio management and the financial performance of commercial (case study of orient Bank) for period 2012, 2013 and 2014. This is because Orient bank has continuously written off huge sums of money in bad loans and as a result registered a loss of 16 Billion in 2013 and was rated as the worst performer that year by Bank of Uganda. The study was based on four objectives that is; to explore the criteria for determining interest rates, loan size and collateral required before issuing loans in Orient bank, to analyse the loan appraisal, loan monitoring and follow up actions taken in Orient bank, to assess the relationship between loan policy on financial performance of Orient bank and to assess the relationship between Loan control and financial performance of Orient bank. The study used a case study research design because it excels at bringing us to an understanding of a complex issue and can extend experience or add strength to what is already known through previous research. Both primary and secondary data were utilised. Primary data was obtained through the use of self-administered questionnaires. Secondary data was got from Bank of Uganda reports, Journals, credit procedure manuals, Offer letters, as well as financial statements of Orient Bank Uganda Ltd for the years 2012, 2013 and 2014. The findings revealed that: Orient bank has Loan policies in place but the challenge is some loan officers are not compliantly adhering to them, the rate of borrowers default is high and this is because there is timely follow up by those concerned, the bank policies have not attracted loan applicants, bank's lending policies contributes towards reducing risk exposure, loan size advanced doesn't depend on the financial potential of the loan applicant, the interest rate is not favourable on the side of the borrowers, loan officers don't monitor and make follow up of loan applicants and effective loan policies significantly reduce rate of loan default. I recommend that the management of Orient bank should put in place strong loan portfolio control measures and evaluation procedures that aim at ascertaining the capacity and capability of loan applicants/borrower.enLoan portfolioManagementFinancial performanceCommercial banksOrient bankThesis