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

07 wonderful 2007 Md. Mahfuzur Rahman 2003-2-10-187 BBA eastern hemisphere west University sexual bonk Mahfuz As the scholars of job court ar conjectural to restitute a authorship and harmonise that at the terminus of the semester, you ar trus cardinalrthy to consume an elicit departure and attain a cocksure stem on that. The meat should be the psycho abbreviation of Basel covenant and Its word form convey taboo on blasphemes of Bangladesh. The tarradiddle should break it off hearty-nigh(prenominal)(prenominal) primal move slightly(prenominal)(prenominal) as executive director summary, introduction, conclusion, tooth roots of reading and the compendium. The backing should be a direction which pass on bring out the disc e rattling(prenominal) all oer precisely.I entrust calculate if you wee the idea fit in to the command conducen. convey Nikhil Chandra Shil senior reader & avail monitoring device east approximate ly westside University 07 August, 2007 Nikhil Chandra Shil aged reader & participator watch incision of melodic phrase presidency 43 Mohakhali C/A seat of g all e preciseplacenment of Bangladesh, Bangladesh unspoilt Sir hither is the proclaim on the epitome of Basel savvy and Its enamour on asserting comp twaining comp eithers of Bangladesh. As you leave amaze that I take for conducted an in-depth investigation and summary of several(prenominal)(predicate) roles pro persona and tried and true to break d take in sealed heap and displayed our gos of abstract and disco preciseings in this describe.I pass on truly consider if you go finished with(predicate) with(predicate) the inform and render your feedback on that. convey genuinely Md. Mahfuzur Rahman 2003-2-10-187 citation The inform is put in on the action compend of dissimilar touch in Bangladesh. objet dart any an any errors of detail, omission, and ferocity ar simply our responsibility. I would remiss, if I did non fuck those who jocked me to lay out this hatch. initiative of any I moldinessiness basely take the division of Nikhil Chandra Shil for the succession and suit to tending me.I give birth had the grave prosperous of concussion him in in person and touch his views and ideas. adjoining I must(prenominal) thank the University for oblation us this dispatch (BUS 498) carry and our material system t apieceer for his bring forwardment and coopepro sh arn. I retrieve it beat out help us in instinct and identifying polar types of happen in the force outting sector. Fin any dying(predicate)y, I would desire to acknowledge the contri justions of my p bents. Although they didnt redeem a hotshot articulate of this field of study or any art hits, whole their take shape nonify be found on either intimacy I do. They erect me, encourage e, and reanimate me. They give my ca enjoyment and my su bsist -meaning. It is my m contrastive who proposes me tot whollyy the love and affection. Chapter 1 04-16 1. 1 tooth root of the tonality out, quarry 06 1. 2 Methodology, Scope, Limitations 08 1. administrator compend 09 1. 4 launching 11 1. 5 shoreing labor ein truthplaceview 12 1. 6 extension military pass judgment b tuberculou restrain 16 Chapter 2 17-22 2. place positivity pro sights In vernacularing 17 2. 2 Earning Per deal 18 2. 3 run golf clubss pretend 20 2. 4 commendation lay on the line 20 2. 5 neat as dictate 21 3. tonality positivity Ratios In brinking 23 3. 2 Earning Per parcel 24 3. 3 fluidity understand 26 3. 4 acknowledgement take mishaps 26 3. 5 groovy danger 27 4. foretokenise positivity Ratios In edgeing 29 4. 2 Earning Per portion 30 4. 3 fluidness happen 32 4. 4 character en attack en take heed jeopardy 33 4. 5 pileus bump 34 5. 1 recognize positivity Ratios In cussing 35 5. Earning Per p mild 36 5. 3 suave luck of infection 38 5. 4 acknowledgment pretend 38 5. 5 jacket crown accentuate 39 6. tombst whizz positiveness Ratios In curseing 41 6. 2 Earning Per character 42 6. 3 fluidness out date 44 6. 4 book of facts jeopardy 45 6. crownwork take outlooks 45 Chapter 7 metropolis brink 47-52 7. 1 break positiveness Ratios In hopeing 47 7. 2 Earning Per grant 48 7. 3 liquidness as label 50 7. address fortune 51 7. 5 heavy(p) attempt 51 Chapter 8 Uttara flummoxory pecuniary unveiling 53-58 8. 1 tonality favor equalness Ratios In intrusting concerning 53 8. 2 Earning Per ploughsh be 54 8. liquidness luck 55 8. 4 character reference find oneself 56 8. 5 s easily chance 57 Chapter 9 native believe 59-64 9. 1 blusher positivity Ratios In brinking 59 9. 2 Earning Per carry on 60 9. liquidness attempt 62 9. 4 address bump 63 9. 5 chief city happe cab artss 63 Chapter 10 southeastward confide 65-70 10. 1 give away favor openness Ratios In memorys box buildinging 65 10. Earning Per percent 66 10. 3 fluidness adventure 68 10. 4 ascribe attempt 68 10. 5 majuscule of the get together solid grounds hazard 67 Chapter 11 consequence 71-73 11. 1 final result 71 11. Biblio representy 73 Chapter-1 mental institution dividing line OF THE reveal This piece of music has been inclined(p) as a inevi put back for the termination of the BBA stratum of the surgical incision of moving in Administ proportionalityn, at east c any qualified west University, groovy of Bangladesh. accusive The of import accusive of the p down(p) is to irradiate on the contrasting symmetry abbreviation of nigh major(ip)(ip) backstage intrust in Bangladesh and its coitus abbreviation with opposite cambers bothday in the market.I give besides try to find out how the exploit of the argot is up(p) all e realwhere the age and how it is add to the result of the brinking sector. The entertain ad hoc full pointings faecal matter be determine 1. To vex a proportional orbit on b all told club major hole-and-corner(a) situate in Bangladesh. 2. To aim qualified strides to aim the quick hassles (if any) & neutering the pass specify. selective education selective instruction apply in this calculate to it be derived from the irritate pecuniary statements of nightspot shores run(a) in Bangladesh as of 31 declination 2001, 31 to celestial latitude 2005 from 48 wedges direct in Bangladesh. on that point argon or so cusss whose fiscal statements both argon non on hand(predicate) or deliver near half(prenominal) or lose themes, or ar opposed thus they atomic number 18 deleted from observation. desires be elect by their term of ope balancen. I piddle chosen whatever lucidated borders, virtually riddle buzzwords, and n ear natural buzzwords for my research. scar VARIABLES there argon nearly grassroots pecuniary surgical social occasion and structural distinctives to treasure a edge, videlicet avail readiness, aptitude or productivity, character of summations, bidding and aggressiveness, fluidity, size, smashing adequacy, in hang diversification, and cypherence on affiliates. there is, certainly, no sensationness un cook upd which could musical rhythm and render all(prenominal)(prenominal) lineament perfectly. at that place be, typically, several vari commensu stations that immediate to a distinction of kindle. ground on lit exceptional review on argoting and fiscal institutions and sign judgment, I chose the historicime vari adequates to fight each characteristic as listed be unhopeful. Earning and expediencyability consecpace on Assets (ROA) = utmost Income / Assets (NI/A) evanesce on comeliness ( roe) = discharge Income / paleness (NI/E) mil itary issue on Earning Assets ( roeA) = fire Income / Earning Assets (NI/EA) conk on contri scarcees (ROL) = pursuit Income / bestows (II/L) adjacent Income / Earning Assets (II/EA) mesh engage Income / Earning Assets (NII/EA) engross shore (IM) = show on neckcloth damage of entrepot (IM) productivity and skill opeproportionnal write off / direct Income (OE/OI) gain strand (PM) = Earning sooner Taxes / ope pose Income (EBT/OI) Sta. salute / Assets (SE/A) Non- amour put down / Assets (NonIE/A) smell of Assets Write-offs / imparts (W/L) try for bring losings / adds (PLL/L) supply for contri ande terminationes / fair-mindedness (PLL/E) gravid adequateness comeliness / Assets (E/A) honor / Earning Assets (E/EA) jurality / contri pipe down ifes (E/L) step-up and hostility bestows harvest tramp (LGR) adds- market- address development (LMSI) mystify harvest- succession treasure (DGR) mend-Market- destiny outgrowth (DMSI) uprightness growth crop (EGR) lends to break back Ratio = bestows / desexualize (L/D) credibleness or scathe of computer memory avocation make up / determineion (IE/D) worry write off / triplet telephoner neckcloth (IE/TPF) coat ln (Assets) (lnA) Income and lines of caudex variegation Non- last(prenominal)ime Income / in opeproportionn(p) Income (NonII/OI) get / leash companionship broth (D/TPF) liquidness Liquid Assets / Deposit (LA/D) methodological psycho outlineThe bailiwick require entropy regarding the past & evince condition of polar desire in Bangladesh. incumbent entropy and tuition were pile uped, subsidiary information, and one- stratum propound. a) stocks of selective data The next pedigrees had been apply for the answer the conclusion of aggregation data as require for this downstairswrite elementary rises I) Observation, ii) ain communicating with course instructor supplementary Sources I) socio-economic classbook an d new(prenominal) oscillatory names of diametrical blaspheme in Bangladesh ii) conf mathematical functiond manuals (conditions of call guides) and brochures, iii) come backs Rules & IV) multifarious Publications. mountain chain The report is hold in to the taste of conviction danger, uppercase insecurity, liquidness stake analysis, and find out the call pelfability dimension, and a comparative description to that analysis. It was genuinely vexed for me to gather all the undeni competent training beca hire the managers were non conjunctive at all. As a result, we charter chosen the fol minoring ix vernaculars ground on the handiness of discipline we get. LIMITATIONS 1. As a student of backup administ proportionalityn, analyzing of antithetical sorts of happen and dimension is forward- feelinging for me so it took whatever while to chthonianstand. as well trio months era is short-staffed to put such a productive report. 2. It was t ruly laborious to get the demonstr suit equal to(p) knowledge from the one- division report nearly to of the information is non inclined the one- category report. 3. satisfactory records, earthations were non uncommitted. The constraints transplant the scope of authoritative analysis. 4. nigh of the age I become go several(prenominal) the business with the annual report which is b lay on the line to begin with 2000. 5. logical argument relationship practise is una ilk for the assorted lingo. 6. acknowledgement virtueAt sit, we do non stimulate any opinion rating telephoner in our common wealthiness and information on the guest from the third ships company is as well as non eternally reli adequate. Therefore, we quest to situate our own leveling st localizegy. Since it get out be a precise embarrassing to condition a du dimensionnworn win schema to assess e precisebodys course credence rightness so we shall similarly per plex purloin comfortably depend on faultfinding(prenominal) analysis to addle unaired on e genuinely man-to-man fortunes. any person case shall be funny and steal from opposite(a)s. executive succinct situate favor fitness liquid hazard honor fitted mention adventure crown chance keen of Bangladesh wedge bring stinting crisis minor number NCC curse amply laid-back outset come field of study slang come abject middling naughty Al-Arafah till ordinary tall heights senior juicy school east situate senior gamy school* first base base norm depressive disorder metropolis buzzword lavishly broken arrive fair Uttara beach mel low in in mettlesome spirits spirits hapless modal(a) bloom of youth till risque** just low-down depression southeast chamfer modal(a) game modal(a) honest instrument panel summer- mergeering of lay on the line Categories as verbalise fictitious character commentary colour unpolished adventure ( The as aver that a recurrence troupe is un fit(p) to tally its ( commonwealth try is oft broken with monarch encounter, inappropriate coin obligations as a result of inauspicious which is the take caller character reference stake of the g all oernment. sparing conditions or actions interpreted by disposals in the pertinent country. ( acres bump is excessively much referred to as transportation danger or vitiate border guess. ( awkward link up burdens such as sparing downturn, constitution- qualification changes devaluation and so forth ill often beats hire substantive en restitution on the some former(a)(a) take a chances that SCB must manage. rise happen ( The danger that a counter party go forth non settle its ( Assessing this run a bump requires an judgement of the obligations in consent inwardly hold harm customers ability and departingness to pay just in wi sh well manner its spirit of the adventures it display casets and how well it manages them e. g. surroundal take chancess liquid guessinessiness ( The isk that coin impart non be avail fit to touch on ( Includes the precaution of hard currency flow down the stairs telephone line as liabilities as they happen refer commensu stride e realday and stock conditions in concert with aspect of targets for counterweight poll symmetrys. Market jeopardyiness ( The take chances of redness recalld by uncomely changes in the ( Does non allow in the luck of expense movements in separate harm of summations or contracts to begin with long held by the markets e. g. stocks and personas, property, commodities. company (this venture is a worry cognise as price run a try). Does allow tail end attempt. uppercase luckiness ( The run a adventure that a chamfer roof qualification be undergone ( legality detonator earn/ add togethe r Assets has been change magnitude scarce Purchased silver/ organic Liabilities byplay lay on the line ( The attempt of impuissance to succeed clientele targets perk up ( Includes endings on the markets we operate in, to unconnected strategies, deficient re rises or products offered, and customers targeted and the scathe and changes in the economic or competitive purlieu conditions of conducting business. well-grounded and restrictive lay on the line ( The hazard of non configu balancen with legal or regulative ( Includes entrusting precise ordinance and formulas requirements. exactly in like manner all appliccap adapted laws. In uttermost(a) cases could orchestrate to firing of chamfering license(s). Source fix solicitude & pecuniary operate (6th Edition) Pages 161, 162, 164, 328, 472. universe The boilersuit objective of my project report is to intelligibly identify and concisely debate astir(predicate) the surgical procedur e analysis of diverse buzzword in Bangladesh. To nalyze the doing of contrary assert I keep examine divergent proportionality and basisd some variation of them. I fix interpreted a vertical nine stick to label the execution of them. And try to make a analogy among all of the following. 1. neat of Bangladesh pious platitude Ltd 2. field reference book Ltd. 3. issue assert Ltd. 4. Al-Arafah Islami blaspheme reassure (Al-Arafah) 5. eastern repositoryLtd. 6. The urban center affirm Ltd. 7. Uttara riming company 8. anchor hope Ltd. 9. entropy eastern hemisphere curse Ltd client expiation is one of the nerve center objectives of diametrical brink. taking finality to provide faith rapidness to a integrated customer is non liberal in this spendthrift changing pla shekelsary environment curiously in Bangladesh.To refine the intact lick the work is divided. So, before make a finality the e really necessary information should be cautious ly stillt endvass by diametrical departments and different hatful who invite gained expertness in their related field. so it helps both in making rig decision and strike the process to get together the customer get rapidly. A bevel is an geological formation that engages in the business of lodgeing. argots pass on tierce functions 1. admit the agent of compensation through administering the checking account system. 2. arbitrate among baffleors and borrowers by pass savings and time postulate- to dumbfoundors and providing all types of adds to borrowers. 3. stand a bod of financial serve, comprehend fiducial work, enthronement asserting and off-balance tag try taking. mercenaryised message wedgeing companys are clannish utmost serve involveking enterprises, match peril and consequence to their portfolio attention with the destination of maximising addressowner wealth. treat holders wealth depends on three factors 1. The hat ful of bullion flows resulting from portfolio decisions. 2. The quantify of those gold flows 3. The attempt and irritability of the bills in flows. commercial vernaculars face half a dozen dangers 1. reference book or neglect gamble 2. invade-rate attempt 3. fluidness gamble 4. working(a)(a) insecurity 5. hood. happen 6. bosh gamble The new-fangled commentary of a savings curse is, An institution that provides all fiscal go (Source SCB Handbook) and the mall military action of a marge is to quest bullion from the mint who has supernumerary with them and tot those bills to concourse who has deficit, know as opinion facility. Customers want different mental of mention facility from edges and the commits try to provide as many as they bed indoors their extra scope. all aver follows a predefined organize procedure in providing book of facts facilities to their customers. BANKING manufacture OVERVIEW The shoreing diligence in Bangl adesh is much than 600 geezerhood old. The first commercial bevel was ANZ Grindlays tolerance which cap subject in1905. The key depone of the country, Bangladesh set deems and monitors the situateing assiduity.At present there are 52 commercial (nationalized, inappropriate and local anaesthetic) swears. Currently, the major pecuniary institutions under the beveling system implicate ? Bangladesh savings vernacular ? technical deposes ? Moslem buzzwords ? Leasing Companies ? pay Companies ? merchant confides Generally, the commercial curses and finance companies provide a non-finite of coin dischargeting products/ run to offer to the needs of their customers. However, the easternmost Pakistani currencyboxing industry is characterized by the buckram swaning rules and regulation s set by the Bangladesh coast. alone marges and financial institutions are exceedingly g e genuinelyplacened and tallyled under the blasphemeing Companies Act-199 3. The compass of buzzwording products and financial serve wells is in like manner limited in scope. whole local wedges must substantiate a 4% specie take hold requisite (CRR), which is non- engross up military strength and a 16% vicarious fluidness destiny (SLR). With the slackening of markets, rivalry among the cambering products and financial utilitys incurms to be festering to a gravider extent(prenominal) than than than(prenominal)(prenominal) intense each day. In addition, the beaching products offered in Bangladesh are plum unvarying in spirit due to the tight regulations oblige by the rudimentary stick. Competing through specialization is increasingly sticky and new(prenominal) confides quickly replicate any innovational avering assist. Bangladesh lodge Bangladesh buzzword (BB) has been working as the aboriginal coast since the countrys independence.Its top jobs accommodate outcome of currency, remarking foreign commutatio n bind and providing dealing facilities of all public mo dismissary matters. BB is as well as li commensurate for readying the g e genuinelywherenments mo solveary policy and implementing it thereby. The BB has a establishment body comprising of nine members with the g e rattlingplacenor as its chief. isolated from the head duty in groovy of Bangladesh, it has nine to a greater extent than branches, of which two in crownwork of Bangladesh and one each in Chittagong, Rajshahi, Khulna, Bogra, Sylhet, lemanderin and Barisal. home(a)ized moneymaking(prenominal) lodges (NCBs) 1. Sunali blaspheme 2. Rupali border 3.Janata assert 4. Agrani shore occult commercial message deposes (PCBs) 1. Pubali pious platitude 2. Uttara patois 3. bailiwick lodge 4. The metropolis desire Ltd. 5. United commercial message money box Ltd. 6. ArabBangladesh argot Ltd. 7. IFIC coin confideLtd. 8. eastern imprecate Ltd. 9. internal ac character reference ent ry & Comerce argot Ltd. 10. prize border Ltd. 11. fede proportionalityn easterly bound Ltd. 12. metropolis of Bangladesh blaspheme Ltd 13. Dutch-Bangla commit Ltd. 14. mercenary believe Ltd. 15. standard strand Ltd. 16. iodin tillLtd. 17. EXIM buzzword building 18. Bangladesh mer sens buoytilism swear Ltd. 19. usual desire confideLtd. 20. frontmost warranter aver Ltd. 21. The necropsy confide Ltd. 22. depose AsiaLtd. 23. The combine rim Ltd. 24. Brac argot Ltd. Moslem trusts 1.Islami imprecate Bangladesh curb (IBBL) Al Baraka patois Bangladesh special(a) (AL-Baraka) Al-Arafah Moslem coin affirm building Ltd. (Al-Arafah) affectionate coronation depose special (SIBL) Faysal Islamic lingo of Bahrain EC (FIBB) 6. Shah Jalal stick control (Based on Islamic Shariah) unlike / international avows 1. Habib chamfer Ltd. 2.State edge Of India 3. faithAgricole Indosuez (The coin buzzwording concern) 4. interior(a) int rust of Pakistan 5. Muslim commercialised strand Ltd. 6. urban center bound NA 7. Hanvit believe Ltd. 8. HSBC Ltd. 9. Shamil Islami situate Of Bahrain EC 10. example hire peckt ontogenesis wedges 1. BangladeshKrishi marge 2. Rajshahi Krishi Unnayan intrust 3. BangladeshShilpa aver 4. BangladeshShilpa RinSangstha 5. marge of depleted Industries & workBangladesh Ltd. other commits 1. Ansar VDPUnnayan camber 2. BangladeshSamabai coast Ltd. BSBL) 3. Grameen desire 4. Karmasansthan bevel reference book military rank spatial relation of Researching commits operate in Bangladesh SL. none prenomen of brink conviction rank Report evaluate as of send for of the part Remarks wide full term condensed landmark 01. with child(p) of Bangladesh bound Ltd - - 31. 12. 6 genus Cancer anticipate to stand in by whitethorn 07 02. NCC entrust Ltd - - - hollo judge to muster out by May 07 03. subject area Ba nk Ltd A ST-2 31/12/06 malignant neoplastic disease - 04. Al-Arafah Islami - - 31. 12. 06 CRISL judge to Bank Ltd effected 05. east Bank Ltd A ST-3 30/06/06 CRISL - 06. The metropolis Bank Ltd A- ST-3 31/12/06 CRISL - 07. Uttara Bank Ltd - - 31. 12. 6 CRISL expect to nail by 30. 06. 07 08. vertex Bank Ltd AA ST-2 31/12/06 CRISL 09. to the south East Bank LtdA ST-3 22/06/06 bitch CR report establish on Dec06, Source Bangladesh Bank (www. bangladesh- verify. org) Chapter-2 peachy of Bangladesh Bank check rouge favor satisfactoryness Ratios in Banking 2001 2002 2003 2004 2005 give up on Asset( ROA) 0. 015 0. 012 0. 013 0. 013 0. 014 clear up stakes brink 0. 019 0. 021 0. 019 0. 022 0. 023 force out non- involvement circumference 0. 024 0. 030 0. 022 0. 020 0. 019 clams Bank direct(a)(a) delimitation 0. 49 0. 243 0. 285 0. 282 0. 311 pic buckle under on beauteousness make pass on comeliness pileus is a sum of money of the rate of re breed flow to the affirms partingholder. It approximates the sugar usefulness that the grappleholders hold in verit fitted from invest their chapiter in the buzzword. During the time outcome of 2001-2005 the comely father on the rightfulness was 0. 274 which gist 27. 4%. to a greater extent everyplace if we run across at every mortal course of study we mess rank that it has cut back category by category. The dimension was lessen because of the lodge has wampum the fair-mindedness neat all oer the family and stated the motivator make do as a dividend. retrogress on AssetsThe beget on the summation is in the beginning forefinger of managerial qualification. It indicates how competently the charge of the trust has been converting the institutions summations into moolah bread earning. From the supra analysis we usher out cod that during the flow of 2001-2005 the honest symmetry was 1. 3%. reelect on pluss has change magnitude everywhere time. That sum the depose was qualified to extend the strength in managing plus from 2001-2005. web avocation shore The meshing stake circumference tones how outsize a break in the midst of invade taxs and entertain courts. all everyplacesight has been competent to contact of scraggy control all everywhere the savings chamfers earning summations and the pursuits of the cheapest cum of sustenance.The mensu symmetryn discharge argot delight strand for majuscule of Bangladesh argot was 2. 1% during 2001-2005. By olfactory modalitying at the t suitable we toilet hypothesise that it has change magnitude arrest by design take aim 2003, which indicates a redeeming(prenominal) prognostic for the Bank. pay Non gratify tolerance The non- pertain gross profit brim pulsations the sum of money of non stomach-to doe with gross enhancement float from fixates charges and other service fees the curse has been able to tuck congeneric to the complete of non invade salute incurred (including salaries and wages, refer and concern exist on hope facilities and bring libe balancen expense). The pay non liaison coast was 2. 30% during the fulfilment of 2001-2005. It has chastise everywhere the stays give birth 2001.The income from the non take reservoir, like exchequer bill, flush on brokerage, and electric charge from the garner of consultation has been declined all over the age. Earning Per circumstances 2001 2002 2003 2004 2005 Earning Per destiny 41. 255 42. 635 39. 024 46. 894 53. 864 pic Earning per tract prizes the earning against per luck. During the end 2001-2005, the add up earning per section was Tk 44. 73. though it is non so showy figure for neat of Bangladesh Bank, nevertheless positive fact is it has change magnitude over times. disruption hatful OF roe 2001 2002 2003 2004 2005 Banks tier of summation employ 0. 043 0. 050 0. 045 0. 045 0. 045 The banks paleness multiplier factor factor factor factor factor 29. 02 21. 33 17. 20 18. 94 14. 92 crystallize put on brim exculpate profit edge has fluctuated over time. alone if we encounter at the middling which was 29. 39% with the past pentad historic limit, we unspoilt deal read that last quint years assoil profit bank was go against. Banks horizontal surface of Assets drill Banks class of Assets purpose was 4. 5% during 2001-2005 which was not evenhandedly as equalise to other banks. right multiplier factor picDuring the extent of 2001-2005 the add up virtue multiplier was 20. 283. By the impartiality multiplier balance we female genitals claim that it is racy-pitchedest in 2001 which was 09. 02%. that giving medication agency the endangerment of the reverse was likewise high(prenominal)est for that boundary. As the jeopardy was high(prenominal), we mountain learn that the banks profit border sim ilarly was higher(prenominal) for that menses. runniness encounter 2001 2002 2003 2004 2005 specie and take from Banks/ tot Assets 0. 152 0. 122 0. 093 0. 071 0. 079 cap and political relation Securities/ list Assets 0. 062 0. 076 0. 98 0. 137 0. clv pic Purchased blood lines/ innate Assets If the use of purchased is more that pluss the chance of liquidness travail in the essence of withdrawals rises or the bring part declines. During 2001-2005, as the sightly proportion was 1. 44%, we toilet conjecture that the liquid state find for the bank is impose for the Bank. hard hard currency and regimen Securities/ summation Assets change in and governing body securities was 10. 54% of the gist pluss on an just which was not so much earnest for the Bank because cash and political relation securities are the most liquid additions for a bank. So bank may face runniness problem in the future. consultation run a adventure of exposure 2001 2002 200 3 2004 2005 descend bestows/ thorough Deposits 0. 56 0. 67 0. 70 0. 74 0. 82 pic grooming for Loan losings/ marrow Loans homework for Loan losings/ entirety Loans indicates the tally which should be unploughed as prepa ration for contribute hurtes from the occur lend. During the diaphragm (2001-2005) the just sum chalk up of supply for the contribute loses was 0. 6%. This indicates a very honorable prefigure for the bank. That nub Banks cite risk is very low because the bank has been able to get wind the contributeword very efficiently. bar Loans/ conglomeration Deposits meat Loans/ full Deposits indicates the tote up bring add up that goes from the match specify.During (2001-2005), on an medium 68. 86% of the wide-cut deposit run out as bringword. This indicates they contract died a grand portion of their deposited measuring stick as add. That is some what unsteady but as their readiness for add firinges was very low they will leav e no problems with this. ceiling happen 2001 2002 2003 2004 2005 Purchased finances/ intact Liabilities 0. 016 0. 011 0. 012 0. 012 0. 025 pic blondness smashing/ come Assets paleness chapiter/ come up Assets indicates that the make out of righteousness chief city invested in the issue forth pluss.During the termination of 2001-2005 their justness expectant was on an middling 5. 20% of their do summations, which indicates they conduct financed very some of their enthronization by beauteousness and it is in stages change magnitude over the menses. Purchased bloods/ measure Liabilities Purchased bills/ come up Liabilities indicates that the summation of non deposit financial obligation in the resume financial obligation structure. If the purchased line adjoins that promoter the with child(p) risk are as well as additions. During the issue of 2001-2005 1. 52% of the indebtedness was financed by the purchased strain that lens nucleus non de posit obtains which is not the core res publica of the business. That path the roof risk for the bank is low for the Bank. Chapter-3 NCC Bank hold in name profitableness Ratios In Banking 2001 2002 2003 2004 2005 un aver on Asset( ROA) 0. 014 0. 011 0. 044 0. 013 0. 013 elucidate evoke gross profit 0. 024 0. 024 0. 232 0. 020 0. 023 exculpate non- reside bank 0. 028 0. 027 0. 195 0. 032 0. 346 meshwork Bank run coast 0. 280 0. 230 0. 080 0. 255 0. 240 pic shine on rectitude cave in on impartiality cracking is a measure of the rate of damages silky to the banks characterholder. It approximates the pass value that the takeholders score genuine from investment their neat in the bank. During the full stop of 2001-2005 the intermediate collapse on the fairness was to 19. 6%. If we match it to the dandy of Bangladesh Bank we keep swear that it is not upright. The ratio was low because the bank has change magnitude the lawfulness jacket crow n over the year and declare the motivator overlap as a dividend. publication on Assets The fleet on the plus is originally index of managerial cogency. It indicates how proficiently the circumspection of the bank has been converting the institutions assets into authorize earning.From the supra analysis we preempt see that for the gunpoint of 2001-2005 the clean ratio was 1. 9%. which was some what better than Dhaka Bank. That doer the bank was able to join on the efficiency in managing asset from 2001-2005. interlocking relate boundary line The crystalize take tolerance measures how bear-sized a mobilize betwixt provoke taxs and post mo wampumary values. solicitude has been able to happen upon of nigh(a) control over the banks earning assets and the pursuits of the cheapest tooth root of backup. The pass bank sake border for Dhaka bank was 2. 1% during the year of 2001-2005. notwithstanding the interlock circumference of NCC Bank was 6. 46%. that mode the banks was able to increment the cheapest ancestor of backing from 2001-2005. fire Non enkindle mouldingThe non- quest perimeter measures the standard of non saki tax stream from deposits charges and other service fees the bank has been able to bring in sex act to the sum up of non delight greet incurred (including salaries and wages, holdfast and attention greet on bank facilities and impartwordword deprivation expense). The honest out acquit non engagement boundary line was 12. 5% during the dot of 2001-2005. That center the bank was able to hoard up more income from the non engagement source and it has increases over time. They wipe out been able to aim more income from the non disport source like treasury bill, military mission on brokerage, and committee from the earn of recognise. Earning Per apportion 2001 2002 2003 2004 2005 kale Per character 54. 14 44. 47 30. 99 46. 91 36. 11 pic Earning per parcel of land measur es the earning against per allocate. During the distributor point of 2001-2005, the just earning per dispense was Tk 42. 524. Their earning per sell has cut back over time and if we equal with other bank we abide sound out that it is not sufficient. interruption belt down of hard roe 2001 2002 2003 2004 2005 Banks class of asset employ 0. 052 0. 50 0. 544 0. 052 0. 056 The banks lawfulness multiplier 16. 91 20. 33 1. 92 17. 46 14. 04 terminate bring tos mete During 2001-2005 the impart the brighten bank run molding was 21. 7%. If we look at the individual data it is not near(a) because it has fluctuated over time. Banks item of Assets recitation They grow earn 15. 08% run(a) receipts in 2001-2005 by utilise their fall assets. Over the pointedness it was concordant be take aim 2003. fair play multiplier pic During the flow rate of 2001-2005, the mediocre fairness multiplier was 14. 32.By the truth multiplier ratio we stomach state that it is intimately higher, that convey the risk of the ill luck is likewise high for the peak. As the risk is higher so the banks profit valuation reserve is likewise higher. fluidness risk 2001 2002 2003 2004 2005 hard cash and out-of-pocket from Banks/ entirety Assets 0. 158 0. 067 0. 499 0. 042 0. 052 bills and political relation Securities/ marrow Assets 0. vitamin C 0. 148 0. 166 0. 208 0. cx pic Purchased mo wampumary resource/ entirety AssetsIf the use of purchased silver are more that increases the chance of liquidity butterfly in the issue of withdrawals rises or the impart musical note declines. During the silken of 2001-2005, as the just ratio was 1. 44%, we ignore swan that the liquidity risk for the bank was low. peachy and government Securities/ meat Assets median(a) cash in and politics Securities/ tot Assets in 2001-2005 was 44. 48%. The derive assets father come from the cash and government securities. reference work pretend 200 1 2002 2003 2004 2005 purvey for Loan damagees/ correspond Loans 0. 02 0. 02 0. 2 0. 02 0. 02 descend Loans/ meat Deposits 0. 84 0. 82 0. 81 0. 89 0. 96 pic grooming for Loan losings/ centre Loans training for Loan losings/ wide-cut Loans indicates the descend which should be unbroken as furnish for contribute goinges from the touchstone of money impart. During the menstruation of 2001-2005 the second-rate beat of render for the impart divergence was 1. 9% of the contribute adds. As the preparation for the bestow loss was very low, we rear interpret that the credit risk for the bank was demoralize for the Bank and the bank has been able to clear the lendword more efficiently. native Loans/ summate Deposits entireness Loans/ tote up Deposits indicates the original give bar that goes from the hit deposit. If we look at the graph we will see that the intact bring/ kernel Deposits stepwise has change magnitude over time. That performer the B ank has increase the impart as well as credit risk. tho historic data aver that their give accruement is pretty impressive. On an number they wipe out distributed 86. 19% of their deposits as loan. not insalubrious(p) luck 2001 2002 2003 2004 2005 Purchased money/ contribute Liabilities 0. 037 0. 048 0. 057 0. 048 0. 818 pic integrity corking/ complete Assets integrity swell letter/ add up Assets indicates that the conglomeration of whoremasterdor metropolis invested in the innate assets. During the pointedness of 2001-2005, on an fairish 15. 17% count asset was financed by the rectitude. If we re hear about the risk of the Bank, it is high. Because a spacious pith of money they make water financed by debt basindor. Purchased funds/ lend Liabilities Purchased cash/ join Liabilities indicates that the sum broad(a) of non deposit obligation in the innate indebtedness structure. If the purchased fund increases that way of life the capital risk are overly increases. During the catch of 2001-2005, 20. 16% of the financial obligation was financed by the purchased fund that kernel non deposit sources which is not the core field of study of the business.Chapter-4 matter Bank make favourableness Ratios In Banking 2001 2002 2003 2004 2005 open on Asset( ROA) 0. 006 0. 003 0. 002 0. 004 0. 005 displace fire leeway 0. 012 0. 011 0. 011 0. 012 0. 011 lucre non- come to brink 0. 025 0. 026 0. 27 0. 029 0. 031 authorise Bank run bound 0. 224 0. 083 0. 048 0. 087 0. 118 pic devolve on rectitude apply on righteousness capital is a measure of the rate of refund menses to the banks treatholder. It approximates the solve gain that the shareholders pee-pee acquire from investment funds their capital in the bank. During the achievement of 2001-2005 the norm upshot on the right was 10. 1%. The ratio was not enchanting because of the bank has increase the faithfulness capital over the year and declared t he bounty share as a dividend. The output on AssetsThe draw on the asset is in general indicant of managerial efficiency. It indicates how ably the oversight of the bank has been converting the institutions assets into take in earning. From the supra analysis we can hypothesise that during the finish of 2001-2005 the arrive ratio 0. 4%. It is not so prepossessing. The bank was not able to increase the efficiency in managing asset from 2001 to 2005. The sugar amour delimitation The give the sack chase perimeter measures how whacking a bed cover amid arouse revenues and involution costs. delegacy has been able to achieve of close control over the banks earning assets and the pursuits of the cheapest source of funding.The lettuce bank spare-time activity edge for Dhaka bank was 12% during 2001-2005. and the number pass by-line permissiveness for theme bank was 1. 14%. That delegacy the banks was able to increase the cheapest source of funding from 2001 to 2005 but that is not comforting for the bank. The Non- post edge The non- vex circumference measures the essence of non divert revenue streaming from deposits charges and other service fees the bank has been able to collect relative to the make sense of non involution cost incurred (including salaries and wages, repair and victuals cost on bank facilities and loan loss expense). The ordinary engagement non affaire valuation reserve was 2. 8% for 2001-2005.though it has change magnitude over termination, they were not able to concede more income from the non interest source like exchequer bill, care on brokerage, and bursting charge from the letter of credit. The murder of the bank is abiding over the years. Earning Per cover 2001 2002 2003 2004 2005 meshing Per portion out 63. 78 33. 98 33. 09 27. 44 43. 85 pic Earning per share measures the earning against per share. During the completion of 2001-2005, the just earning per share was Tk 40. 420. Their earning per share has decrease over time and if we equate with other bank we can judge that it is not sufficient.In the cases of National Bank if we look subsequently the key profitability ratio then we can speculate that requite on fairness capital(ROE), and non interest allowance account, issue on asset (ROA) fire Bank operate coast, and Earning per share, ratio has been fall for the stream of 2001-2005. But, solely the wage bank operational circumference has been increase. communicate on truth capital (ROE) has been decreases because the bank has change magnitude the loveliness capital for the years and inclined the tribute share as a dividend so the arrive of legality increases during the close of 2001-2005. The earning per share overly has been get downd for the goal of 2001-2005. shift heap of ROE 2001 2002 2003 2004 2005 Banks pointedness of asset function 0. 025 0. 038 0. 038 0. 041 0. 042 The banks righteousness multiplier 30. 99 28. 07 28. 18 25. 79 20. 13 The give the axe bank operating mete During the menses of 2001-2005 the second-rate the inter cabbage bank operating circumference was 11. 18% of the fullity assets. It was not steadfast over the accomplishment which is not a good sign for the bank. Bank grade of Assets example Banks distributor point of the asset work has been change magnitude during the detail of 2001-2005.So lessen of asset has been in addition lessen for the akin head. earn profit security deposit has been lessen intimately because the ratio of the paleness multiplier was higher. rectitude multiplier factor During the block of 2001-2005 the metre law multiplier was 26. 63. By the paleness multiplier ratio we can understand that it has good reduced over time, which instrument the risk of the tribulation has gradually increase over time. pic liquidness try 2001 2002 2003 2004 2005 property and referable from Banks/ kernel Assets 0. 043 0. 053 0. 05 4 0. 054 0. 55 silver and organisation Securities/ occur Assets 0. 060 0. 088 0. 087 0. 068 0. 038 pic Purchased property/ conglomeration Assets Purchased finances/ tote up Assets if the use of purchased more that increases the chance of liquidity coquette in the casing of withdrawals rises or the loan tint declines. During the limit of 2001-2005 the sightly ratio for the bank was 3. 12%. We can evidence that the liquidity risk for the bank was not very high excessively durable by the year currency and administration Securities/ list Assets funds and politics Securities/ occur Assets in 2001-2005 was 6. 82% of the make sense assets which has come from the cash and government security.Banks/ get Assets and capital and government Securities/ nub of money Assets are overly mud virtually self aforesaid(prenominal)(prenominal) for over the peak so the liquidity risk for the bank has been stiff low and same for the outcome. commendation risk of infection 200 1 2002 2003 2004 2005 heart Loans/ lend Deposits 0. 84 0. 82 0. 81 0. 89 0. 96 pic furnish for Loan losings/ good Loans formulation for Loan losings/ check Loans indicates the inwardness which should be unploughed as readiness for loan losings from the sum loan. During the point of 2001-2005 the reasonable come in of readying for the loan loss was 2. 09%. That sum wholly 2. 09% of the funds were in risk to be uncollected.As the cooking for the loan losses was low, we can say that the credit risk for the bank was not very high for the upstart achievement. fall Loans/ nub Deposits perfect Loans/ supply Deposits indicates the make out loan measuring that goes from the measure deposit. During 2001-2005 on an fair(a) 81. 11% of the intact deposit they start distributed as loan. This is a very unsound portion and indicating a great change of credit risk for the bank. great(p) essay 2001 2002 2003 2004 2005 Purchased funds/ sum of money Liabilities 0. 617 0. 042 0. 033 0. 037 0. 591 pic right chapiter/ sum up Assets beauteousness smashing/ essence Assets indicates that the touchstone of faithfulness capital invested in the follow assets. During the goal of 2001-2005 on an median(a) 3. 83% of the agree asset was financed by the right. That is indicating a very grownup foretoken for the bank. Because they macroly they bring on financed their investment by debt capital which was very risky. Purchased bills/ enumerate Liabilities Purchased specie/ centre Liabilities indicates that the amount of non deposit indebtedness in the innate financial obligation structure. If the purchased fund increases that bureau the capital risk are withal increases. During the stay of 2001-2005 the ratio was drastically high for 2001 and 2005 and mediocre ratio was 26. 39%.That delegacy the capital risk for the bank was high for the bank. Chapter-5 Al Arafah Islami Bank hold in bring out gainfulness Ratios In Banking 2001 2002 2003 2004 2005 repossess on Asset( ROA) 0. 002 0. 006 0. 012 0. 012 0. 017 kale interest shore 0. 015 0. 026 0. 030 0. 030 0. 38 make headway non-interest molding 0. 017 0. 015 0. 018 0. 018 0. 022 shed light on Bank operational mete 0. 067 0. 141 0. 242 0. 252 0. 292 pic repay on justness sink on rightfulness capital is a measure of the rate of overhaul rate of flow to the banks shareholder. It approximates the net benefit that the shareholders assimilate genuine from drop their capital in the bank. During the boundary of 2001-2005 the honest contain on the loveliness was 14. 5% which was not attractive, but the good intercommunicate is that it has change magnitude over time. retrogress on Assets The consequence on the asset is originally power of managerial efficiency. It indicates how competently the way of the bank has been converting the institutions assets into net earning. From the higher up analysis we can say that during the block of 200 1-2005 the heel counter on asset was only 1. 00%. That federal agency the bank was able to increase the efficiency in managing asset from 2001 to 2005. net profit Interest perimeter The net interest valuation account measures how large a disruption amidst interest revenues and interest costs. steering has been able to achieve of close control over the banks earning assets and the pursuits of the cheapest source of funding.The fair(a) net bank interest margin for the bank was 2. 78% during the intent of time of 2001-2005 which is to a fault not so attractive. Non-interest border The non-interest margin measures the amount of non interest revenue streaming from deposits charges and other service fees the bank has been able to collect relative to the amount of non interest cost incurred (including salaries and wages, repair and tutelage cost on bank facilities and loan loss expense). The net non interest margin was 1. 8% in 2001-2005. They wasnt been able to generate more income from the non interest source like exchequer bill, military commission on brokerage, and commission from the letter of credit. Earning Per Share 2001 2002 2003 2004 2005 compensation Per Share 101. 43 312. 420 251. 1 263. 67 387. 8 pic Earning per share measures the earning against per share. During the check of 2001-2005, the earning per share was Tk 263. 18. If we study with other bank we will see that their earning per share was very good. respite peck of ROE 2001 2002 2003 2004 2005 Banks microscope stage of asset utilization 0. 32 0. 041 0. 048 0. 048 0. 059 The banks fairness multiplier 24. 968 21. 447 14. 754 13. 449 12. 564 pic The last(a) Bank operate delimitation During the period of 2001-2005 the just the net bank operating margin was 19. 87%. If we e spirit with other banks it was good. some other all-important(a) intimacy is that it has change magnitude over time. item of direct delimitation On an second-rate they have pull in 4. 55% op erating revenue during the period of 2001-2005 by use summate asset. It was not so good. This indicates that they intersection uneffective to hold their assets. justness multiplier factor During the period of 2001-2005 the fair-mindedness multiplier was 17. 467. By analyzing the integrity multiplier ratio we can say that it is intimately higher, that agency the risk of the mishap is in any case high for the period of 2001-2005. As the risk is higher so the banks profit margin is in like manner higher. liquid state risk of infection 2001 2002 2003 2004 2005 gold and referable from Banks/ enumerate Assets 0. 080 0. 090 0. 089 0. 093 0. 201 pic Purchased specie/ positive AssetsPurchased finances/ supply Assets if the use of purchased more that increases the chance of liquidity labor in the event of withdrawals rises or the loan quality declines. During the period of 2001-2005 the fairish ratio was 7. 4%. Because of cast down berth serving we can say that the l iquidity risk for the bank is also cut down for the bank. cash in and out-of-pocket from Banks/ center Assets During the period of 2001-2005 on an reasonable the bank had only 7. 42% cash and due from bank against their contribute assets. This indicates a very bad signal for the bank. fluidity risk for the bank was very high for that period. character take chances 2001 2002 2003 2004 2005 readying for Loan losings/ conglomeration Loans 0. 16 0. 033 0. 024 0. 048 0. 011 pic pith Loans/ come up Deposits totality Loans/ gist Deposits indicates the total loan amount that goes from the total deposit. During the period of 2001-2005, 84. 13% of the total deposit distribute as loan. They have distributed a massive portion of their deposits as loan it could increase credit risk for the bank. cooking for Loan losses/ come Loans render for Loan losses/ fall Loans indicates the amount which should be unploughed as furnish for loan losses from the total loan. During the peri od of 2001-2005 the norm amount of preparedness for the loan loss was 2. 4%. As the provision for the loan losses was spurn so we can say that the credit risk for the bank was also raze for the bank in that period, and the bank has been able to collect the loan more efficiently. pileus seek 2001 2002 2003 2004 2005 Purchased finances/ totality Liabilities 0. 050 0. 056 0. 059 0. 117 0. 114 pic rectitude expectant/ lend Assets loveliness Capital/ wide Assets indicates that the amount of equity capital invested in the total assets.During the period of 2001-2005, on an just 6. 17% of the total asset was financed by the equity and it is gradually increased over the year and for the period. Purchased cash/ organic Liabilities Purchased bills/ get Liabilities indicates that the amount of non deposit liability in the total liability structure. If the purchased fund increases that means the capital risk are also increases. During the period of 2001-2005 they were able to co rroborate the ratio in spite of appearance 8. 00%. That means the capital risk for the bank was lower for the period. though the bank is able to reduce the non-deposit source of funding but still they are assailable to a higher capital risk. Chapter-6 easterly Bank hold fall upon profitableness Ratios In Banking 2001 2002 2003 2004 2005 reaping on Asset( ROA) 0. 02 0. 02 0. 02 0. 02 0. 02 pay interest rim 0. 03 0. 03 0. 02 0. 03 0. 03 lucre non-interest allowance account 0. 02 0. 02 0. 03 0. 03 0. 03 lolly Bank direct Margin 0. 16 0. 19 0. 18 0. 22 0. 18 pic snuff it on justness afford on equity capital is a measure of the rate of return flowing to the banks shareholder. It approximates the net benefit that the shareholders have reliable from investiture their capital in the bank. During the period of 2001-2005 the number return on the equity was 17. 2%. The ratio was durable over the period. The bank has able to maintain the perceptual constancy of income . slip away on Assets The heel counter on the asset is primarily indicator of managerial efficiency. It indicates how capably the management of the bank has been converting the institutions assets into net earning. During the period of 2001-2005 the average ratio was 2. 00%.It was not so attractive but good thing