Analysis of Different Banks Performance in Bangladesh by Using Published Financial Statements

07 August 2007 Md. Mahfuzur Rahman 2003-2-10-187 BBA East West University Dear Mahfuz: As the tyros of affair council are reckoned to ad a Ment and reemblem that at the end of the semester, you are attested to elect an thrilling offspring and form a pompous ment on that. The offspring should be the “Analysis of Basel Agreement and It’s wave on Bank’s of Bangladesh”. The ment should enarrest some key steps such as Executive resume, preliminary, misentry, founts of counsel and the resolution. The style should be a announcement which obtain picture the ment precisely. I obtain recognize if you ad the ment according to the counsel absorbed. Thanks Nikhil Chandra Shil Senior Lecturer & Assistant Proctor East West University 07 August, 2007 Nikhil Chandra Shil Senior Lecturer & Assistant Proctor Department of Affair Council 43 Mohakhali C/A Dhaka, Bangladesh Dear Sir: Here is the ment on the “Analysis of Basel Agreement and It’s wave on Bank’s of Bangladesh”. As you obtain experience that I feel conducted an in-depth search and resolution of opposed type’s produty and seasoned to excite ununsound requisite and displayed our developments of resolution and experienceings in this ment. I obtain indeed recognize if you go through the ment and pointed your feedback on that. Thanks Sincerely Md. Mahfuzur Rahman 2003-2-10-187 Acknowledgement The ment is established on the exploit resolution of opposed bank in Bangladesh. While any an all errors of circumstance, exclusion, and marrow are merely our function. I would tardy, if I did not observe those who accelerationed me to ad this ment. Primary of all I must humbly observe the aid of Nikhil Chandra Shil for the opportunity and trial to acceleration me. I feel had the amiable-natured-natured propitious of consultation him in personally and divide his views and ideas. Next I must thank the University for oblation us this scheme (BUS 498) series and our series schoolmistrain for his welend and partnership. I revere it obtain acceleration us in mind and realizeing opposed types of destroy in the banking sector. Finally, I would enjoy to observe the aids of my parents. Although they didn't transcribe a sole message of this ment or any artworks, but their stereotype can be set-up on integralmonstrosity I do. They stay me, aid e, and animate me. They bestow my is-sue - and my subsist -meaning. It is my Mother who procures me all the devotion and desire. | | |Chapter 1 |04-16 | |1. 1 Origin of the Report, Extrinsic |06 | |1. 2 Methodology, Scope, Limitations |08 | |1. Executive Resume |09 | |1. 4 Preliminary |11 | |1. 5 Banking Perseverance –Overview |12 | |1. 6 Belief Rating Standing |16 | |Chapter 2 |17-22 | |2. Key Profitforce Ratios In Banking |17 | |2. 2 Earning Per Divide |18 | |2. 3 Liquidity Destroy |20 | |2. 4 Belief Destroy |20 | |2. 5 Excellent Destroy |21 | |3. Key Profitforce Ratios In Banking |23 | |3. 2 Earning Per Divide |24 | |3. 3 Liquidity Destroy |26 | |3. 4 Belief Destroy |26 | |3. 5 Excellent Destroy |27 | |4. Key Profitforce Ratios In Banking |29 | |4. 2 Earning Per Divide |30 | |4. 3 Liquidity Destroy |32 | |4. 4 Belief Destroy |33 | |4. 5 Excellent Destroy |34 | |5. 1 Key Profitforce Ratios In Banking |35 | |5. Earning Per Divide |36 | |5. 3 Liquidity Destroy |38 | |5. 4 Belief Destroy |38 | |5. 5 Excellent Destroy |39 | |6. Key Profitforce Ratios In Banking |41 | |6. 2 Earning Per Divide |42 | |6. 3 Liquidity Destroy |44 | |6. 4 Belief Destroy |45 | |6. Excellent Destroy |45 | |Chapter 7: City Bank |47-52 | |7. 1 Key Profitforce Ratios In Banking |47 | |7. 2 Earning Per Divide |48 | |7. 3 Liquidity Destroy |50 | |7. Belief Destroy |51 | |7. 5 Excellent Destroy |51 | |Chapter 8: Uttara Bank |53-58 | |8. 1 Key Profitforce Ratios In Banking |53 | |8. 2 Earning Per Divide |54 | |8. Liquidity Destroy |55 | |8. 4 Belief Destroy |56 | |8. 5 Excellent Destroy |57 | |Chapter 9: Consummate Bank |59-64 | |9. 1 Key Profitforce Ratios In Banking |59 | |9. 2 Earning Per Divide |60 | |9. Liquidity Destroy |62 | |9. 4 Belief Destroy |63 | |9. 5 Excellent Destroy |63 | |Chapter 10: Southeast Bank |65-70 | |10. 1 Key Profitforce Ratios In Banking |65 | |10. Earning Per Divide |66 | |10. 3 Liquidity Destroy |68 | |10. 4 Belief Destroy |68 | |10. 5 Excellent Destroy |67 | |Chapter 11: Misentry |71-73 | |11. 1 Misentry |71 | |11. Bibliography |73 | Chapter-1 Preliminary ORIGIN OF THE REPORT This ment has been add as a limitation for the example of the BBA program of the Department of Affair Administration, at East West University, Dhaka. OBJECTIVE The main extrinsic of the ment is to irradiate on the opposed produty resolution of some superior identical bank in Bangladesh and its Relatively Resolution behind a while other Banks prevalent in the bargain. I obtain too try to experience out how the exploit of the bank is neat counteract the years and how it is contributing to the development of the banking sector. The subjoined favoring extrinsics can be identified: 1. To constitute a not-absolutely consider on nine superior identical bank in Bangladesh. 2. To recommend befitting values to eject the corpotrue completions (if any) & rectify the bestow plight. DATA Facts used in this scheme are conservative from the published financial announcements of nine banks exempt in Bangladesh as of 31 December 2001, 31 to December 2005 from 48 banks exempt in Bangladesh. There are some banks whose financial announcements either are not conducive or hold some scant or mislaying wholeitys, or are destructive advenient they are deleted from attention. Banks are disconnectedd by their standing of exercise. I feel disconnectedd some Liquidated Banks, some Completion Banks, and some Normal Banks for my elaboration. INITIAL VARIABLES There are some basic financial exploit and structural singularitys to evaluate a bank, namely emolumentability, teachableness or productivity, description of proceeds, development and aggressiveness, eloquentity, extent, excellent adequacy, allowance shifting, and self-reliance on affiliates. There is, unfailingly, no sole fickle which could value and rebestow each singularity wholly. There are, typically, various fickles that next to a singularity of cause. Established on lore retrospect on banking and financial states and primal sagacity, I chose the subjoined fickles to rebestow each singularity as listed adown. Earning and emolumentability: Yield on Proceeds (ROA) = Net Allowance / Proceeds (NI/A) Yield on Equity (ROE) = Net Allowance / Equity (NI/E) Yield on Earning Proceeds (ROEA) = Net Allowance / Earning Proceeds (NI/EA) Yield on Loans (ROL) = Cause Allowance / Loans (II/L) Interest Allowance / Earning Proceeds (II/EA) Net Cause Allowance / Earning Proceeds (NII/EA) Cause Loophole (IM) = Yield on Stock - Absorb of Stock (IM) Productivity and Efficiency: Exempt Outlay / Exempt Allowance (OE/OI) Emolument Loophole (PM) = Earning Precedently Taxes / Exempt Allowance (EBT/OI) Sta. Outlay / Proceeds (SE/A) Non-cause Outlay / Proceeds (NonIE/A) Description of Assets: Write-offs / Loans (W/L) Eatables for Advance Losses / Loans (PLL/L) Eatables for Advance Losses / Equity (PLL/E) Excellent Adequacy: Equity / Proceeds (E/A) Equity / Earning Proceeds (E/EA) Equity / Loans (E/L) Development and Aggressiveness: Loans Development Scold (LGR) Loans-Market-Share Increment (LMSI) Safeguard Development Scold (DGR) Deposit-Market-Share Increment (DMSI) Equity Development Scold (EGR) Loans to Safeguard Produty = Loans / Safeguard (L/D) Credibility or Absorb of Fund: Cause Outlay / Safeguard (IE/D) Cause Outlay / Third Laterality Stock (IE/TPF) Size: ln (Assets) (lnA) Allowance and Sources of Stock Diversification: Non-cause Allowance / Exempt Allowance (NonII/OI) Safeguard / Third Laterality Stock (D/TPF) Liquidity: Eloquent Proceeds / Safeguard (LA/D) METHODOLOGY The consider required counsel respecting the departed & bestow plight of opposed Bank in Bangladesh. Requisite certaintys and counsel were amassed, inferior certaintys, and annual ment. a) Sources of Data: The subjoined founts had been used for the deemblem the deemblem of amassing certaintys as required for this ment: Primary founts: I) Observation, ii) Personal despatch behind a while series schoolmistrain Inferior Sources: I) Annual and other classificationatic ments of opposed Bank in Bangladesh ii) Various manuals (provisions of use guides) and brochures, iii) Employment Rules & IV) Miscellaneous Publications. SCOPE The ment is poor to the mind of belief destroy, excellent destroy, eloquentity destroy resolution, and experience out the key emolumentforce proportion, and a not-absolutely limitation to that resolution. It was indeed involved for me to supplement all the requisite counsel accordingly the regulaters were not cooperative at all. As a development, we feel disconnectedd the subjoined nine banks established on the availforce of counsel we get. LIMITATIONS 1. As a tyro of affair council, analyzing of opposed sorts of destroy and produty is new for me so it took some opportunity to comprehend. Besides three months opportunity is uneven to ad such a hearty ment. 2. It was very involved to get the external counsel from the annual ment; some of the counsel is not absorbed the annual ment. 3. Enough registers, openations were not conducive. The constraints narrowed the occasion of true resolution. 4. Most of the opportunity I feel countenanced the completion behind a while the annual ment which is add precedently 2000. 5. Accounting exercise is opposed for the opposed bank. 6. Belief Worthiness: At bestow, we do not feel any belief rating aggregation in our state and counsel on the customer from the third laterality is too not regularly trustworthy. Therefore, we scarcity to constitute our own scoring classification. Since it obtain be a very involved to ad a flag scoring classification to assess integralbody’s belief amiableness so we shall too feel top really consist on sagacityal resolution to constitute judgment on integral identical subjects. Integral identical subject shall be sole and disconnected from others. EXECUTIVE SUMMARY Bank |Profitforce |Liquidity Destroy |Credit Destroy |Capital Destroy | |Dhaka Bank |Average |Low |Low |Average | |NCC Bank |High |High |Low |Average | |National Bank |Average |Low |Average |High | |Al-Arafah Bank |Average |High |High |High | |Eastern Bank |High* |Low |Average |Low | |City Bank |High |Low |Average |Average | |Uttara Bank |High |High |Low |Average | |Prime Bank |High** |Average |Low |Low | |Southeast Bank |Average |High |Average |Average | TABLE: Summery of Destroy Categories |Risk Type |Definition |Comment | |Country Destroy |( The destroy that a across laterality is weak to unite its |( State destroy is repeatedly involved behind a while partotality destroy, | | |strank circulation obligations as a development of obstructive |which is the across laterality belief destroy of the council. | |economic plights or actions charmed by councils in | | | |the apt state. |( State Destroy is too repeatedly referred to as convey destroy | | | |or perverse brim destroy. | | | | | | | |( State connected accidents such as economic downturn, | | | |collective qualifys; devaluation etc. ill repeatedly feel | | | |expressive impression on the other destroys that SCB must | | | |manage. | |Credit Destroy |( The destroy that a across laterality obtain not quiet its |( Assessing this destroy requires an mind of the | | |obligations in accordance behind a whilein agreed stipulations |customers force and obtainingness to pay but too its | | | |mind of the destroys it countenances and how polite it | | | |manages them e. g. environmental destroys | |Liquidity Destroy |( The isk that stocks obtain not be conducive to unite |( Includes the regulatement of specie issue beneathneathneath affair as | | |liabilities as they lapse due |common and strain plights concomitantly behind a while setting of | | | |targets for counteract equivocation proportions. | |Market Destroy |( The destroy of detriment propagated by obstructive qualifys in the |( Does not enarrest the destroy of absorb movements in other | | |absorb of proceeds or contracts currently held by the |markets e. g. stocks and divides, amiables, chattels. | | |aggregation (this destroy is too known as absorb destroy). |Does enarrest wholeity destroy. |Capital Destroy |( The destroy that a bank excellent rule be beneathneathgone |( Equity Capital/Total Proceeds has been growthd but | | | |Purchased Funds/Total Liabilities | |Business Destroy |( The destroy of unsound to perfect affair targets due |( Includes judgments on the bargains we effect in, | | |to impertinent strategies, uneven resources or |products offered, and customers targeted and the stipulations and| | |changes in the economic or competitive environment |provisions of conducting affair. | |Legal and Regulatory Destroy |( The destroy of non yielding behind a while juridical or regulatory |( Includes banking favoring comp and principles | | |requirements. |but too all pertinent laws. In final subjects could direct | | | |to detriment of banking allow(s). | Source: Bank Skill & Financial Services (6th Edition) Pages: 161, 162, 164, 328, 472. INTRODUCTION The counteractall extrinsic of my scheme ment is to palpably realize and little debate environing the exploit resolution of opposed bank in Bangladesh. To nalyze the exploit of opposed bank I feel excited opposed produty and granted some limitation of them. I feel charmed a aggregate nine bank to evaluate the exploit of them. And try to constitute a similarity unarranged all of the subjoined. 1. Dhaka Bank Ltd 2. National Credit Ltd. 3. National Bank Ltd. 4. Al-Arafah Islami Bank Poor (Al-Arafah) 5. Eastern Bank Ltd. 6. The City Bank Ltd. 7. Uttara Bank 8. Consummate Bank Ltd. 9. South East Bank Ltd Customer content is one of the heart extrinsics of opposed bank. Entrance judgment to procure belief pliancy to a oppidan customer is not indulgent in this pay changing global environment distinctly in Bangladesh. To flatten the undivided regularity the is-sue is divided. So, precedently making a judgment the integral requisite counsel should be carefully excited by opposed departments and opposed mob who feel gained expertise in their connected province. Thus it accelerations twain in making amend judgment and flattenen the regularity to satiate the customer scarcity at-once. A bank is an constitution that engages in the affair of banking. Banks consummate three functions: 1. Procure the media of eloquentation through administering the checking wholeity classification. 2. Intermediate betwixt safeguardors and borrowers by oblation savings and opportunity safeguard- to safeguardors and providing all types of advances to borrowers. 3. Provide a medley of financial employments, encompassing fiduciary employments, boarding banking and off-counteract equivocation destroy entrance. Retail banks are identical emolument seeking enterprises, balancing destroy and yield to their portfolio regulatement behind a while the deemblem of maximizing divideholder lucre. Divide holders lucre consists on three circumstanceors: 1. The dimensions of specie issues developmenting from portfolio judgments. 2. The timing of those specie issues 3. The destroy and contrariety of the specie issues. Retail banks countenance six destroys: 1. Belief or Default destroy 2. Interest-scold destroy 3. Liquidity destroy 4. Operational destroy 5. Capital. Destroy 6. Fraud destroy The Modern limitation of a bank is, An state that procures all financial employments" (Source: SCB Handbook) and the heart activity of a bank is to amass openity from the mob who has rest behind a while them and advance those openity to mob who has deficit, known as belief pliancy. Customers sought opposed peel of belief pliancy from banks and the banks try to procure as frequent as they can behind a whilein their poor occasion. Integral bank follows a predefined constitutiond process in providing belief facilities to their customers. BANKING INDUSTRY –OVERVIEW The banking perseverance in Bangladesh is aggravate than 600 years old. The primary retail bank was ANZ Grindlays Bank which opened in1905. The convenient bank of the state, Bangladesh Bank regulates and monitors the banking perseverance. At bestow there are 52 retail (nationalized, strank and persomal) banks. Currently, the superior financial states beneathneathneath the banking classification enclose: ? Bangladesh Bank ? Retail Banks ? Islamic Banks ? Leasing Companies ? Finance Companies ? Merchant Banks Generally, the retail banks and finance companies procure a inundation of banking products/services to arrank to the scarcitys of their customers. However, the Bangladeshi banking perseverance is characterized by the smart banking rules and principle s set by the Bangladesh Bank. All banks and financial states are exceedingly inferior and inferior beneathneathneath the Banking Companies Act-1993. The rank of banking products and financial employments is too poor in occasion. All persomal banks must observe a 4% Specie Constraint Limitation (CRR), which is non-cause conduct and a 16% Inferior Liquidity Limitation (SLR). Behind a while the liberalization of bargains, rivalry unarranged the banking products and financial employments seems to be growing aggravate serious each day. In specification, the banking products offered in Bangladesh are fairly congruous in creation due to the smart principles imposed by the convenient bank. Competing through opposediation is increasingly involved and other banks at-once image any innovative banking employment. Bangladesh Bank Bangladesh Bank (BB) has been is-sueing as the convenient bank since the state's anarchy. Its consummate jobs enarrest issuing of circulation, observeing strank substitute constraint and providing negotiation facilities of all open monetary matters. BB is too under obligation for planning the council's monetary cunning and implementing it thereby. The BB has a regulateling conveneiveness comprising of nine members behind a while the Governor as its first. Apart from the leader appointment in Dhaka, it has nine aggravate branches, of which two in Dhaka and one each in Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Rangpur and Barisal. Nationalized Retail Banks (NCBs) |1. Sunali Bank | |2. Rupali bank | |3. Janata Bank | |4. Agrani Bank | Identical Retail Banks (PCBs) |1. Pubali Bank | |2. Uttara Bank | |3. National Bank | |4. The City Bank Ltd. | |5. United Commercial Bank Ltd. | |6. Arab Bangladesh Bank Ltd. | |7. IFIC Bank Ltd. | |8. Eastern Bank Ltd. | |9. National Belief & Comerce Bank Ltd. | |10. Consummate Bank Ltd. | |11. South East bank Ltd. | |12. Dhaka Bank Ltd | |13. Dutch-Bangla Bank Ltd. | |14. Mercantile Bank Ltd. | |15. Standard Bank Ltd. | |16. One Bank Ltd. | |17. EXIM Bank | |18. Bangladesh Commerce Bank Ltd. | |19. Mutual Trust Bank Ltd. | |20. First Security Bank Ltd. | |21. The Premier Bank Ltd. | |22. Bank Asia Ltd. | |23. The Trust Bank Ltd. | |24. Brac Bank Ltd. | Islamic Banks |1. Islami Bank Bangladesh Poor (IBBL) | |Al Baraka Bank Bangladesh Poor (AL-Baraka) | |Al-Arafah Islamic Bank Ltd. (Al-Arafah) | |Social Boarding Bank Poor (SIBL) | |Faysal Islamic Bank of Bahrain EC (FIBB) | |6. Shah Jalal Bank Poor (Based on Islamic Shariah) | Strank / Multinational Banks |1. Habib Bank Ltd. | |2. State Bank Of India | |3. Credit Agricole Indosuez (The Bank) | |4. National Bank of Pakistan   | |5. Muslim Commercial Bank Ltd. | |6. City Bank NA | |7. Hanvit Bank Ltd. | |8. HSBC Ltd. | |9. Shamil  Islami Bank Of  Bahrain EC | |10. Flag Chartered  Bank | Development Banks |1. Bangladesh Krishi Bank | |2. Rajshahi Krishi Unnayan Bank | |3. Bangladesh Shilpa Bank | |4. Bangladesh Shilpa Rin Sangstha  | |5. Bank of Small Industries & Commerce  Bangladesh Ltd. | Other Banks |1. Ansar VDP Unnayan Bank  | |2. Bangladesh Samabai Bank Ltd. BSBL)  | |3. Grameen Bank  | |4. Karmasansthan Bank  | Belief Rating Standing of Researching Banks Exempt in Bangladesh |SL. NO. |Name of Bank |Credit Rating Ment |Rating as of |Name of the Agency |Remarks | | | |Long Term |Short Term | | | | |01. |Dhaka Bank Ltd |- |- |31. 12. 6 |CRAB |Expected to | | | | | | | |perfect | | | | | | | |by May' 07 | |02. |NCC Bank Ltd |- |- |- |CRAB |Expected to | | | | | | | |perfect | | | | | | | |by May ' 07 | |03. National Bank Ltd | A |ST-2 |31/12/06 |CRAB |- | |04. |Al-Arafah Islami |- |- |31. 12. 06 |CRISL |Expected to | | |Bank Ltd | | | | |perfect | |05. |Eastern Bank Ltd |A |ST-3 |30/06/06 |CRISL |- | |06. |The City Bank Ltd |A- |ST-3 |31/12/06 |CRISL |- | |07. |Uttara Bank Ltd |- |- |31. 12. 6 |CRISL |Expected to | | | | | | | |perfect | | | | | | | |by 30. 06. 07 | |08. |Prime Bank Ltd |AA |ST-2 |31/12/06 |CRISL | | |09. |South East Bank Ltd|A |ST-3 |22/06/06 |CRAB |CR ment established on | | | | | | | |Dec'06, | Source: Bangladesh Bank (www. bangladesh-bank. org) Chapter-2 Dhaka Bank Poor Key Profitforce Ratios in Banking | |  |2001 |2002 |2003 |2004 |2005 | |Return on Asset( ROA) |0. 015 |0. 012 |0. 013 |0. 013 |0. 014 | |Net cause Loophole |0. 019 |0. 021 |0. 019 |0. 022 |0. 023 | |Net non-cause Loophole |0. 024 |0. 030 |0. 022 |0. 020 |0. 019 | |Net Bank Exempt Loophole |0. 49 |0. 243 |0. 285 |0. 282 |0. 311 | [pic] Yield on Equity: Yield on equity excellent is a value of the scold of yield issueing to the banks divideholder. It approximates the net favor that the divideholders feel current from investing their excellent in the bank. During the bound of 2001-2005 the mediocre yield on the equity was 0. 274 which media 27. 4%. But if we seem at integral identical year we can say that it has decreased year by year. The produty was decreased accordingly of the bank has growthd the equity excellent counteract the year and nominal the boon divide as a dividend. Yield on Assets: The Yield on the asset is liberally indicator of regulaterial teachableness. It indicates how capably the regulatement of the bank has been converting the states proceeds into net earning. From the aggravate resolution we can see that during the bound of 2001-2005 the mediocre produty was 1. 3%. Yield on proceeds has growthd counteract opportunity. That media the bank was efficient to growth the teachableness in managing asset from 2001-2005. Net Cause Margin: The net cause loophole values how liberal a disperse betwixt cause wealths and cause absorbs. Skill has been efficient to perfect of arrest regulate counteract the banks earning proceeds and the pursuits of the cheapest fount of stocking. The mediocre net bank cause loophole for Dhaka bank was 2. 1% during 2001-2005. By seeming at the tefficient we can say that it has growthd bound by bound confirm 2003, which indicates a amiable-natured-natured illustrious for the Bank. Net Non Cause Margin: The non-cause loophole values the wholeity of non cause wealth streaming from safeguards snucleus and other employment fees the bank has been efficient to amass not-absolute to the wholeity of non cause absorb incurred (including salaries and stipend, restore and defence absorb on bank facilities and advance detriment outlay). The net non cause loophole was 2. 30% during the bound of 2001-2005. It has refuse counteract the bounds confirm 2001. The allowance from the non cause fount, enjoy Treasury score, delegation on brokerage, and delegation from the missive of belief has been refused counteract the years. Earning Per Share: | |2001 |2002 |2003 |2004 |2005 | |Earning Per Divide |41. 255 |42. 635 |39. 024 |46. 894 |53. 864 | [pic] Earning per divide values the earning across per divide. During the bound 2001-2005, the mediocre earning per divide was Tk 44. 73. Though it is not so alluring appearance for Dhaka Bank, but independent circumstance is it has growthd counteract opportunitys. Breaking Down OF ROE |2001 |2002 |2003 |2004 |2005 | |Banks grade of asset utilization |0. 043 |0. 050 |0. 045 |0. 045 |0. 045 | |The banks equity multiplier |29. 02 |21. 33 |17. 20 |18. 94 |14. 92 | Net Emolument Margin: Net emolument loophole has fluctuated counteract opportunity. But if we seem at the mediocre which was 29. 39% behind a while the departed five years, we can say that conclusive five years net emolument loophole was reform. Banks Grade of Proceeds Utilization: Banks Grade of Proceeds Utilization was 4. 5% during 2001-2005 which was not bad as assimilate to other banks. Equity Multiplier: [pic] During the bound of 2001-2005 the mediocre equity multiplier was 20. 283. By the equity multiplier produty we can say that it is foremost in 2001 which was 09. 02%. that media the destroy of the want was too foremost for that bound. As the destroy was amend, we can say that the banks emolument loophole too was amend for that bound. Liquidity Destroy |  |2001 |2002 |2003 |2004 |2005 | |Cash and Due from Banks/Total Proceeds |0. 152 |0. 122 |0. 093 |0. 071 |0. 079 | |Cash and Council Securities/Total Proceeds |0. 062 |0. 076 |0. 98 |0. 137 |0. 155 | [pic] Purchased Funds/Total Assets: If the use of purchased is aggravate that growths the fortuity of eloquentity crunch in the accident of behind a whiledrawals rises or the advance description refuses. During 2001-2005, as the mediocre produty was 1. 44%, we can say that the eloquentity destroy for the bank is inferior for the Bank. Specie and Council Securities/Total Assets: Specie and Council securities was 10. 54% of the aggregate proceeds on an mediocre which was not so plenteous amiable-natured-natured for the Bank accordingly specie and council securities are the most eloquent proceeds for a bank. So bank may countenance eloquentity completion in the advenient. Belief Destroy   |2001 |2002 |2003 |2004 |2005 | |Total Loans/Total Deposits |0. 56 |0. 67 |0. 70 |0. 74 |0. 82 | [pic] Eatables for Advance Losses/Total Loans: Eatables for Advance Losses/Total Loans indicates the wholeity which should be kept as eatables for advance detrimentes from the aggregate advance. During the bound (2001-2005) the mediocre wholeity of eatables for the advance loses was 0. 6%. This indicates a very amiable-natured-natured illustrious for the bank. That media Bank’s belief destroy is very low accordingly the bank has been efficient to amass the advance very efficiently. Aggregate Loans/Total Deposits Aggregate Loans/Total Deposits indicates the aggregate advance wholeity that goes from the aggregate safeguard. During (2001-2005), on an mediocre 68. 86% of the aggregate safeguard keep-apart as advance. This indicates they feel keep-apartd a big duty of their safeguarded wholeity as advance. That is some what destroyy but as their eatables for advance detrimentes was very low they obtain feel no completions behind a while this. Excellent Destroy |  |2001 |2002 |2003 |2004 |2005 | |Purchased Funds/Total Liabilities |0. 016 |0. 011 |0. 012 |0. 012 |0. 025 | [pic] Equity Capital/Total Assets: Equity Capital/Total Proceeds indicates that the wholeity of equity excellent invested in the aggregate proceeds. During the bound of 2001-2005 their equity excellent was on an mediocre 5. 20% of their aggregate proceeds, which indicates they feel financed very few of their boarding by equity and it is ghostly growthd counteract the bound. Purchased Funds/Total Liabilities: Purchased Funds/Total Liabilities indicates that the wholeity of non safeguard liforce in the aggregate liforce constitution. If the purchased stock growths that media the excellent destroy are too growths. During the bound of 2001-2005 1. 52% of the liforce was financed by the purchased stock that media non safeguard founts which is not the heart area of the affair. That media the excellent destroy for the bank is low for the Bank. Chapter-3 NCC Bank Poor Key Profitforce Ratios In Banking | |  |2001 |2002 |2003 |2004 |2005 | |Return on Asset( ROA) |0. 014 |0. 011 |0. 044 |0. 013 |0. 013 | |Net cause Loophole |0. 024 |0. 024 |0. 232 |0. 020 |0. 023 | |Net non-cause Loophole |0. 028 |0. 027 |0. 195 |0. 032 |0. 346 | |Net Bank Exempt Loophole |0. 280 |0. 230 |0. 080 |0. 255 |0. 240 | [pic] Yield on Equity: Return on equity excellent is a value of the scold of yield issueing to the banks divideholder. It approximates the net favor that the divideholders feel current from investing their excellent in the bank. During the bound of 2001-2005 the mediocre yield on the equity was to 19. 6%. If we assimilate it to the Dhaka Bank we can say that it is not amiable-natured. The produty was low accordingly the bank has growthd the equity excellent counteract the year and nominal the boon divide as a dividend. Yield on Assets: The Yield on the asset is liberally indicator of regulaterial teachableness. It indicates how proficiently the regulatement of the bank has been converting the states proceeds into net earning. From the aggravate resolution we can see that for the bound of 2001-2005 the mediocre produty was 1. 9%. which was some what reform than Dhaka Bank. That media the bank was efficient to growth the teachableness in managing asset from 2001-2005. Net Cause Margin: The net cause loophole values how liberal a disperse betwixt cause wealths and cause absorbs. Skill has been efficient to perfect of arrest regulate counteract the banks earning proceeds and the pursuits of the cheapest fount of stocking. The net bank cause loophole for Dhaka bank was 2. 1% during the year of 2001-2005. But the net loophole of NCC Bank was 6. 46%. that media the banks was efficient to growth the cheapest fount of stocking from 2001-2005. Net Non Cause Margin: The non-cause loophole values the wholeity of non cause wealth streaming from safeguards snucleus and other employment fees the bank has been efficient to amass not-absolute to the wholeity of non cause absorb incurred (including salaries and stipend, restore and defence absorb on bank facilities and advance detriment outlay). The mediocre net non cause loophole was 12. 5% during the bound of 2001-2005. That media the bank was efficient to amass aggravate allowance from the non cause fount and it has growths counteract opportunity. They feel been efficient to genescold aggravate allowance from the non cause fount enjoy Treasury score, delegation on brokerage, and delegation from the missive of belief. Earning Per Share: |2001 |2002 |2003 |2004 |2005 | |Earnings Per Divide |54. 14 |44. 47 |30. 99 |46. 91 |36. 11 | [pic] Earning per divide values the earning across per divide. During the bound of 2001-2005, the mediocre earning per divide was Tk 42. 524. Their earning per divide has subsided counteract opportunity and if we assimilate behind a while other bank we can say that it is not enough. Breaking Down of ROE |  |2001 |2002 |2003 |2004 |2005 | |Banks grade of asset utilization |0. 052 |0. 50 |0. 544 |0. 052 |0. 056 | |The banks equity multiplier |16. 91 |20. 33 |1. 92 |17. 46 |14. 04 | Net Emolument Margin: During 2001-2005 the mediocre the net bank exempt loophole was 21. 7%. If we seem at the identical certaintys it is not amiable-natured-natured accordingly it has fluctuated counteract opportunity. Banks Grade of Proceeds Utilization: They feel earned 15. 08% exempt wealth in 2001-2005 by using their aggregate proceeds. Counteract the bound it was agreeing confirm 2003. Equity Multiplier: [pic] During the bound of 2001-2005, the mediocre equity multiplier was 14. 32. By the equity multiplier produty we can say that it is really amend, that media the destroy of the want is too lofty for the bound. As the destroy is amend so the banks emolument loophole is too amend. Liquidity destroy |  |2001 |2002 |2003 |2004 |2005 | |Cash and Due from Banks/Total Proceeds |0. 158 |0. 067 |0. 499 |0. 042 |0. 052 | |Cash and Council Securities/Total Proceeds |0. 100 |0. 148 |0. 166 |0. 208 |0. 110 | [pic] Purchased Funds/Total Assets: If the use of purchased stocks are aggravate that growths the fortuity of eloquentity crunch in the accident of behind a whiledrawals rises or the advance description refuses. During the bound of 2001-2005, as the mediocre produty was 1. 44%, we can say that the eloquentity destroy for the bank was low. Specie and Council Securities/Total Assets: Mediocre Specie and Council Securities/Total Proceeds in 2001-2005 was 44. 48%. The aggregate proceeds feel end from the specie and council securities. Belief Destroy |  |2001 |2002 |2003 |2004 |2005 | |Provision for Advance Losses/Total Loans |0. 02 |0. 02 |0. 2 |0. 02 |0. 02 | |Total Loans/Total Deposits |0. 84 |0. 82 |0. 81 |0. 89 |0. 96 | [pic] Eatables for Advance Losses/Total Loans: Eatables for Advance Losses/Total Loans indicates the wholeity which should be kept as eatables for advance detrimentes from the aggregate advance. During the bound of 2001-2005 the mediocre wholeity of eatables for the advance detriment was 1. 9% of the aggregate advances. As the eatables for the advance detriment was very low, we can say that the belief destroy for the bank was inferior for the Bank and the bank has been efficient to amass the advance aggravate efficiently. Aggregate Loans/Total Deposits: Total Loans/Total Deposits indicates the aggregate advance wholeity that goes from the aggregate safeguard. If we seem at the graph we obtain see that the Aggregate advance/Total Deposits ghostly has growthd counteract opportunity. That media the Bank has growthd the advance as polite as belief destroy. But unadorned certaintys say that their advance amassion is moderately momentous. On an mediocre they feel keep-apartd 86. 19% of their safeguards as advance. Excellent Destroy | |2001 |2002 |2003 |2004 |2005 | |Purchased Funds/Total Liabilities |0. 037 |0. 048 |0. 057 |0. 048 |0. 818 | [pic] Equity Capital/Total Assets: Equity Capital/Total Proceeds indicates that the wholeity of equity excellent invested in the aggregate proceeds. During the bound of 2001-2005, on an mediocre 15. 17% aggregate asset was financed by the equity. If we believe environing the destroy of the Bank, it is lofty. Accordingly a bulky wholeity of openity they feel financed by amenability equity. Purchased Funds/Total Liabilities: Purchased Funds/Total Liabilities indicates that the wholeity of non safeguard liforce in the aggregate liforce constitution. If the purchased stock growths that media the excellent destroy are too growths. During the bound of 2001-2005, 20. 16% of the liforce was financed by the purchased stock that media non safeguard founts which is not the heart area of the affair. Chapter-4 National Bank |Key Profitforce Ratios In Banking | |  |2001 |2002 |2003 |2004 |2005 | |Return on Asset( ROA) |0. 006 |0. 003 |0. 002 |0. 004 |0. 005 | |Net cause Loophole |0. 012 |0. 011 |0. 011 |0. 012 |0. 011 | |Net non-cause Loophole |0. 025 |0. 026 |0. 27 |0. 029 |0. 031 | |Net Bank Exempt Loophole |0. 224 |0. 083 |0. 048 |0. 087 |0. 118 | [pic] Yield on Equity: Yield on equity excellent is a value of the scold of yield issueing to the banks divideholder. It approximates the net favor that the divideholders feel current from investing their excellent in the bank. During the bound of 2001-2005 the mediocre yield on the equity was 10. 1%. The produty was not alluring accordingly of the bank has growthd the equity excellent counteract the year and nominal the boon divide as a dividend. The Yield on Assets: The Yield on the asset is liberally indicator of regulaterial teachableness. It indicates how capably the regulatement of the bank has been converting the states proceeds into net earning. From the aggravate resolution we can say that during the bound of 2001-2005 the mediocre produty 0. 4%. It is not so alluring. The bank was not efficient to growth the teachableness in managing asset from 2001 to 2005. The net cause Margin: The net cause loophole values how liberal a disperse betwixt cause wealths and cause absorbs. Skill has been efficient to perfect of arrest regulate counteract the banks earning proceeds and the pursuits of the cheapest fount of stocking. The net bank cause loophole for Dhaka bank was 12% during 2001-2005. But the mediocre net cause loophole for National bank was 1. 14%. That media the banks was efficient to growth the cheapest fount of stocking from 2001 to 2005 but that is not existing for the bank. The Non-cause Margin: The non-cause loophole values the wholeity of non cause wealth streaming from safeguards snucleus and other employment fees the bank has been efficient to amass not-absolute to the wholeity of non cause absorb incurred (including salaries and stipend, restore and defence absorb on bank facilities and advance detriment outlay). The mediocre net non cause loophole was 2. 8% for 2001-2005. Though it has growthd counteract bound, they were not efficient to genescold aggravate allowance from the non cause fount enjoy Treasury score, delegation on brokerage, and delegation from the missive of belief. The exploit of the bank is stefficient counteract the years. Earning Per Share: | |2001 |2002 |2003 |2004 |2005 | |Earnings Per Divide |63. 78 |33. 98 |33. 09 |27. 44 |43. 85 | [pic] Earning per divide values the earning across per divide. During the bound of 2001-2005, the mediocre earning per divide was Tk 40. 420. Their earning per divide has subsided counteract opportunity and if we assimilate behind a while other bank we can say that it is not enough. In the subjects of National Bank if we seem behind the key emolumentforce produty then we can say that yield on equity excellent(ROE), and non cause loophole, Yield on asset (ROA) Net Bank Exempt Margin, and Earning per divide, produty has been decreased for the bound of 2001-2005. But, solely the net bank exempt loophole has been growthd. Yield on equity excellent (ROE) has been decreases accordingly the bank has growthd the equity excellent for the years and absorbed the boon divide as a dividend so the wholeity of equity growths during the bound of 2001-2005. The earning per divide too has been decreased for the bound of 2001-2005. Breaking Down of ROE   |2001 |2002 |2003 |2004 |2005 | |Banks grade of asset utilization |0. 025 |0. 038 |0. 038 |0. 041 |0. 042 | |The banks equity multiplier |30. 99 |28. 07 |28. 18 |25. 79 |20. 13 | The net bank exempt Margin: During the bound of 2001-2005 the mediocre the net bank exempt loophole was 11. 18% of the aggregate proceeds. It was not stefficient counteract the bound which is not a amiable-natured-natured emblem for the bank. Bank Grade of Proceeds Utilization: Bank’s grade of the asset utilization has been growthd during the bound of 2001-2005. So yield of asset has been too decreased for the corresponding bound. Net emolument loophole has been decreased really accordingly the produty of the equity multiplier was amend. Equity Multiplier: During the bound of 2001-2005 the mediocre equity multiplier was 26. 63. By the equity multiplier produty we can say that it has really subsided counteract opportunity, which media the destroy of the want has ghostly growthd counteract opportunity. [pic] Liquidity Destroy |  |2001 |2002 |2003 |2004 |2005 | |Cash and Due from Banks/Total Proceeds |0. 043 |0. 053 |0. 054 |0. 054 |0. 55 | |Cash and Council Securities/Total Proceeds |0. 060 |0. 088 |0. 087 |0. 068 |0. 038 | [pic] Purchased Funds/Total Assets: Purchased Funds/Total Proceeds if the use of purchased aggravate that growths the fortuity of eloquentity crunch in the accident of behind a whiledrawals rises or the advance description refuses. During the bound of 2001-2005 the mediocre produty for the bank was 3. 12%. We can say that the eloquentity destroy for the bank was not very lofty too stefficient by the year Specie and Council Securities/Total Assets: Specie and Council Securities/Total Proceeds in 2001-2005 was 6. 82% of the aggregate proceeds which has end from the specie and council confidence. Banks/Total Proceeds and Specie and Council Securities/Total Proceeds are too debris approximately corresponding for counteract the bound so the eloquentity destroy for the bank has been debris low and corresponding for the bound. Belief Risk: |  |2001 |2002 |2003 |2004 |2005 | |Total Loans/Total Deposits |0. 84 |0. 82 |0. 81 |0. 89 |0. 96 | [pic] Eatables for Advance Losses/Total Loans: Eatables for Advance Losses/Total Loans indicates the wholeity which should be kept as eatables for advance detrimentes from the aggregate advance. During the bound of 2001-2005 the mediocre wholeity of eatables for the advance detriment was 2. 09%. That media solely 2. 09% of the stocks were in destroy to be uncollected. As the eatables for the advance detrimentes was low, we can say that the belief destroy for the bank was not very lofty for the new-fangled bound. Aggregate Loans/Total Deposits: Aggregate Loans/Total Deposits indicates the aggregate advance wholeity that goes from the aggregate safeguard. During 2001-2005 on an mediocre 81. 11% of the aggregate safeguard they feel keep-apartd as advance. This is a very big duty and indicating a eminent qualify of belief destroy for the bank. Excellent Risk: |  |2001 |2002 |2003 |2004 |2005 | |Purchased Funds/Total Liabilities |0. 617 |0. 042 |0. 033 |0. 037 |0. 591 | [pic] Equity Capital/Total Assets: Equity Capital/Total Proceeds indicates that the wholeity of equity excellent invested in the aggregate proceeds. During the bound of 2001-2005 on an mediocre 3. 83% of the aggregate asset was financed by the equity. That is indicating a very bad illustrious for the bank. Accordingly they in-great-mete they feel financed their boarding by amenability excellent which was very destroyy. Purchased Funds/Total Liabilities: Purchased Funds/Total Liabilities indicates that the wholeity of non safeguard liforce in the aggregate liforce constitution. If the purchased stock growths that media the excellent destroy are too growths. During the bound of 2001-2005 the produty was drastically lofty for 2001 and 2005 and mediocre produty was 26. 39%. That media the excellent destroy for the bank was lofty for the bank. Chapter-5 Al Arafah Islami Bank Poor |Key Profitforce Ratios In Banking | |  |2001 |2002 |2003 |2004 |2005 | |Return on Asset( ROA) |0. 002 |0. 006 |0. 012 |0. 012 |0. 017 | |Net cause Loophole |0. 015 |0. 026 |0. 030 |0. 030 |0. 38 | |Net non-cause Loophole |0. 017 |0. 015 |0. 018 |0. 018 |0. 022 | |Net Bank Exempt Loophole |0. 067 |0. 141 |0. 242 |0. 252 |0. 292 | [pic] Yield on Equity: Yield on equity excellent is a value of the scold of yield issueing to the banks divideholder. It approximates the net favor that the divideholders feel current from investing their excellent in the bank. During the bound of 2001-2005 the mediocre yield on the equity was 14. 5% which was not alluring, but the amiable-natured-natured illustrious is that it has growthd counteract opportunity. Return on Assets: The Yield on the asset is liberally indicator of regulaterial teachableness. It indicates how capably the regulatement of the bank has been converting the states proceeds into net earning. From the aggravate resolution we can say that during the bound of 2001-2005 the yield on asset was solely 1. 00%. That media the bank was efficient to growth the teachableness in managing asset from 2001 to 2005. Net Cause loophole: The net cause loophole values how liberal a disperse betwixt cause wealths and cause absorbs. Skill has been efficient to perfect of arrest regulate counteract the banks earning proceeds and the pursuits of the cheapest fount of stocking. The mediocre net bank cause loophole for the bank was 2. 78% during the bound of 2001-2005 which is too not so alluring. Non-cause Margin: The non-cause loophole values the wholeity of non cause wealth streaming from safeguards snucleus and other employment fees the bank has been efficient to amass not-absolute to the wholeity of non cause absorb incurred (including salaries and stipend, restore and defence absorb on bank facilities and advance detriment outlay). The net non cause loophole was 1. 8% in 2001-2005. They wasn’t been efficient to genescold aggravate allowance from the non cause fount enjoy Treasury score, delegation on brokerage, and delegation from the missive of belief. Earning Per Share: |2001 |2002 |2003 |2004 |2005 | |Earnings Per Divide |101. 43 |312. 420 |251. 1 |263. 67 |387. 8 | [pic] Earning per divide values the earning across per divide. During the bound of 2001-2005, the earning per divide was Tk 263. 18. If we assimilate behind a while other bank we obtain see that their earning per divide was very amiable-natured. Breaking Down of ROE: |  |2001 |2002 |2003 |2004 |2005 | |Banks grade of asset utilization |0. 32 |0. 041 |0. 048 |0. 048 |0. 059 | |The banks equity multiplier |24. 968 |21. 447 |14. 754 |13. 449 |12. 564 | [pic] The Net Bank Exempt Margin: During the bound of 2001-2005 the mediocre the net bank exempt loophole was 19. 87%. If we assimilate behind a while other banks it was amiable-natured. Another momentous monstrosity is that it has growthd counteract opportunity. Grade of Exempt Margin: On an mediocre they feel earned 4. 55% exempt wealth during the bound of 2001-2005 by using aggregate asset. It was not so amiable-natured. This indicates that they staple weak to economize their proceeds. Equity Multiplier: During the bound of 2001-2005 the equity multiplier was 17. 467. By analyzing the equity multiplier produty we can say that it is really amend, that media the destroy of the want is too lofty for the bound of 2001-2005. As the destroy is amend so the banks emolument loophole is too amend. Liquidity Risk: |  |2001 |2002 |2003 |2004 |2005 | |Cash and Due from Banks/Total Proceeds |0. 080 |0. 090 |0. 089 |0. 093 |0. 201 | [pic] Purchased Funds/Total Assets: Purchased Funds/Total Proceeds if the use of purchased aggravate that growths the fortuity of eloquentity crunch in the accident of behind a whiledrawals rises or the advance description refuses. During the bound of 2001-2005 the mediocre produty was 7. 4%. Accordingly of inferior percentage we can say that the eloquentity destroy for the bank is too inferior for the bank. Specie and Due from Banks/Total Assets: During the bound of 2001-2005 on an mediocre the bank had solely 7. 42% specie and due from bank across their aggregate proceeds. This indicates a very bad illustrious for the bank. Liquidity destroy for the bank was very lofty for that bound. Belief Risk: |  |2001 |2002 |2003 |2004 |2005 | |Provision for Advance Losses/Total Loans |0. 16 |0. 033 |0. 024 |0. 048 |0. 011 | [pic] Aggregate Loans/Total Deposits: Aggregate Loans/Total Deposits indicates the aggregate advance wholeity that goes from the aggregate safeguard. During the bound of 2001-2005, 84. 13% of the aggregate safeguard keep-apart as advance. They feel keep-apartd a big duty of their safeguards as advance it could growth belief destroy for the bank. Eatables for Advance Losses/Total Loans: Eatables for Advance Losses/Total Loans indicates the wholeity which should be kept as eatables for advance detrimentes from the aggregate advance. During the bound of 2001-2005 the mediocre wholeity of eatables for the advance detriment was 2. 4%. As the eatables for the advance detrimentes was inferior so we can say that the belief destroy for the bank was too inferior for the bank in that bound, and the bank has been efficient to amass the advance aggravate efficiently. Excellent Destroy |  |2001 |2002 |2003 |2004 |2005 | |Purchased Funds/Total Liabilities |0. 050 |0. 056 |0. 059 |0. 117 |0. 114 | [pic] Equity Capital/Total Assets: Equity Capital/Total Proceeds indicates that the wholeity of equity excellent invested in the aggregate proceeds. During the bound of 2001-2005, on an mediocre 6. 17% of the aggregate asset was financed by the equity and it is ghostly growthd counteract the year and for the bound. Purchased Funds/Total Liabilities: Purchased Funds/Total Liabilities indicates that the wholeity of non safeguard liforce in the aggregate liforce constitution. If the purchased stock growths that media the excellent destroy are too growths. During the bound of 2001-2005 they were efficient to observe the produty behind a whilein 8. 00%. That media the excellent destroy for the bank was inferior for the bound. Though the bank is efficient to attenuate the non-safeguard fount of stocking but stationary they are laagered to a amend excellent destroy. Chapter-6 Eastern Bank Poor Key Profitforce Ratios In Banking | | |2001 |2002 |2003 |2004 |2005 | |Return on Asset( ROA) |0. 02 |0. 02 |0. 02 |0. 02 |0. 02 | |Net cause Loophole |0. 03 |0. 03 |0. 02 |0. 03 |0. 03 | |Net non-cause Loophole |0. 02 |0. 02 |0. 03 |0. 03 |0. 03 | |Net Bank Exempt Loophole |0. 16 |0. 19 |0. 18 |0. 22 |0. 18 | [pic] Return on Equity: Yield on equity excellent is a value of the scold of yield issueing to the banks divideholder. It approximates the net favor that the divideholders feel current from investing their excellent in the bank. During the bound of 2001-2005 the mediocre yield on the equity was 17. 2%. The produty was stefficient counteract the bound. The bank has efficient to observe the stforce of allowance. Yield on Assets: The Yield on the asset is liberally indicator of regulaterial teachableness. It indicates how capably the regulatement of the bank has been converting the states proceeds into net earning. During the bound of 2001-2005 the mediocre produty was 2. 00%. It was not so alluring but amiable-natured-natured monstrosity