1.1 Organization Overview: 1,105,226,569 During The Year 2009. and in June 2010 Profit After Tax Is 793,726,000

1.
1 Organization Overview
During 28th January 1965, The Eastern Banking Corporation inaugurated its operation in East
Pakistan as commercial bank. After 6 months of its inauguration it has got the status of
Schedule Bank. It was the first Bengali Owned Commercial Bank. After liberation the
Eastern Banking Corporation was changed by name as Uttara Bank Ltd. During 1972 it was
taken under national ownership. At that time it’s paid up capital was Tk.69.13 crore and
profit figure was Tk 42lac. In the September 1983 it was privatized under privatization act.
Its Paid up capital is 1,597,318,400 million. 95% of its shareholder is public and rest of share
holds by Government. The bank earned second-highest operating profit during the year 2009
among all private banks of Bangladesh. The bank earned a post - tax profit of Tk.
1,105,226,569 during the year 2009. And in June 2010 Profit after tax is 793,726,000.
Out Line of Uttara Bank Ltd. Bangladesh
a) Nature of Business
Uttara bank Ltd offers services for all banking need of the customers.
As commercial bank it is providing a wide rang of saving and credit products retail banking
and ancillary services with the support of modern technology and professional management
including its traditional banking business as well as export import handling and its financing.
B) Authorized Capital
The authorized capitals of the banks are Tk. 320 crore. 3.2 crore ordinary shares of Tk 100
each in the year 2009.
c) Issued, Subscribe and Paid Up Capital
in 2009 The issued subscribed and paid up capital of the bank is Tk. 1,597,318,400. The total
number of share holder is 15973184. and in June 2010 The issued subscribed and paid up
capital is 2,395,978,000. Tk.
1
The capital structure of Uttara Bank Ltd. Bangladesh:
Sl. No. 2008 2009 2010

Particulars
01 Authorized Capital 1600.00 3200.00 3200.00
02 Paid Up Capital 798.65 1597.31 1597.31
03 Statutory Reserves 1550.83 1800.83 1800.83
04 Retained Earnings 1.71 806.94 802.94
1.2 Vision/ Mission
U Anticipating business solutions required by all our customers everywhere and

innovative supplying them beyond expectation.
U Continuously improving productivity and profitability, and thereby enhancing
shareholder value.
U Uttara Bank Limited provides high quality financial services to strengthen the well-
being and success of individual, industries and business communities.
U Its aim to ensure their competitive advantages by upgrading banking technology and
information system.
U UBL intends to play more important role in the economic development of Bangladesh
and its financial relations with the west of the world by interlinking both modernistic
and international operations.
U The bank intends to meet the needs of their clients and enhance their profitability by
creating corporate market.
U The bank creates wealth for the shareholders
U Its maintain high standard of corporate and business ethics.
U UBL extend highest quality of services, which attracts the customers to choose them
first.
U Its maintain high standard of corporate and business ethics.
U UBL extend highest quality of services, which attracts the customers to choose them
first.
2
1.3 Strategies
1. To manage and operate the Bank in the most efficient manner to enhance financial
performance and to control cost of fund
2. To strive for customer satisfaction through quality control and delivery of timely
services
3. To identify customers' credit and other banking needs and monitor their
perception towards our performance in meeting those requirements.
4. To review and update policies, procedures and practices to enhance the ability to
extend better service to customers.
5. To train and develop all employees and provide them adequate resources so that
customers' needs can be reasonably addressed.
6. To promote organizational effectiveness by openly communicating company
plans, policies, practices and procedures to employees in a timely fashion
7. To cultivate a working environment that fosters positive motivation for improved
performance
8. To diversify portfolio both in the retail and wholesale market
9. To increase direct contact with customers in order to cultivate a closer relationship
between the bank and its customers.
3
1.4 Board of Directors
Chairman
Mr.Azharul Islam
Vice-Chairman
Mr.Md.Asaduzzaman
Directors
Mr.Md.Mahfuzus Subhan Prof.Mirza Mazharul Islam
Mr.Sarwar Boudius Salam Prof.Sharif Md.Shahjahan
Mr.Abu Hossain Siddique Mr.Syed A.N. M.Wahed
Mr.Abdul Barq Alvi Mr.Mustafizur Rahman
Mr.Faruque Alamgir Mr.Shah Habibul Haque
Col.Engr.M.S.Kamal(Retd)
Managing director
Mr.Shamsuddin Ahmed
4
Executive Committee
U Chairman Mr. Azharul Islam

Mr. Iftekharul Islam
U Vice Chairman
U Directors Mr. Shah Habibul Haque

Col.Engineer M.S. Kamal (Retd) Independent
Director
U Managing Director Mr. Shamsuddin Ahmed
Organizational Structure of Uttara Bank Limited.
Managing Director
Deputy Managing Director
Asst. Managing Director
General Manager
Deputy General Manager
5
Asst. General Manager
Senior Principal Officer
Principal Officer
Senior Officer Grade -1
Officer Grade -2
Organizational Structure of Dur-us-Salam Road, Mirpur Branch:
Branch Manager
Second Officer
Principal Officer (Cash)
Officer Grade One
Prob. Officer
6
Officer Grade Two (Cash)
Asst. Officer (General)
Asst. Officer (Cash)
Departments of Uttara Bank Limited
DIFFERENT WINGS
Name of the Division Affiliated Departments

Human Resources Division Personnel Department
Disciplinary Department
Test Key Department
Research & Planning Department
Risk Management Department

Central Accounts Division Accounts Department
Reconciliation Department

Credit Division Approval Department
Admin. & Monitoring Department
Lease Finance Department
Recovery Department

Internal Control &
Audit & Inspection Department
Compliance
Division Monitoring Department
Compliance Department

Banking Control & Common Anti-Money Laundering Department
Services Division Branches Operation Department
7
Business Promotion Department
Public Relations Department

Board & Share Division Board Department
Share Department

International Division Correspondence Banking Department
Remittance Department
Trade Services Department

Treasury Division Front Office (Dealing Room)
Back Office
Asset & Liability Management Department

Establishment Division General Services Department
Transport Department
Stationery & Records Department
Engineering Department

Information &
MIS Department
Communication
Technology (lCT) Division Development & Support Department
Card Department

Corporate Banking Division Credit Marketing Department
Credit Business Development Department

REGIONAL OFFICES
U Dhaka Central Zone U Dhaka North Zone

UBL Networks
U Dhaka South Zone
U Narayanganj Zone U Mymensing Zone U Chittagong Zone
2
Corporate Offices ( Corporate Branch & Local Office )
U Sylhet
Regional OfficeZone U Bogra Zone U Rajshahi Zone 12
U Khulna
Worldwide Zone
Affiliates U Barishal Zone U Comilla Zone 600
Total Branches ( Including Corporate Branch & Local Office ) 211
Authorized Dealer Branches 38
Treasury & Dealing Room 1
Training Institute 1
Man Power 3562
1.5 Products/Services:
8
Product/Services
Loan Products Deposit Products
Uttaran Consumers Savings Account

Credit Scheme
Special Notice Deposits

Personal Loan
Small Business Loan Fixed Deposit Account
Building Repair Loan Double Benefit deposit

Scheme
Monthly Deposit Scheme

The products are described below:
Loan products:
Uttaran Consumer-Credit Scheme :
UBL started Uttaran Consumers Credit Scheme from 1996.UBL offers opportunity
of Financial assistance for -
U Motor cycle/car- New or re-conditioned.
U Refrigerator/ Deep Freeze.
U Television/ VCR /VCP/VCD
U Radio/ Two-in-one/ Three – in – one
U Air-Conditioner/ Water Cooler/ Water Pump
U Washing Machine.
U Personal Computer/ UPS/ Printer/ Type writer
U Sewing Machine.
U House hold furniture- Wooden & Steel.
U Cellular Telephone.
U Fax
9
U Photocopier.
U Electric Fan- Ceiling/ Pedestal/ Table.
U Bi-Cycle
U Dish Antenna.
U Baby Taxi, Tempo/Microbus (For self employed persons)
U Kitchen articles such as Oven, Micro-oven, Toaster, Blender, Pressure Cooker
etc.
Special Features :
U No collateral security is required.

U Simple rate of interest.

U Quick sanction.
U Maximum Loan amount Tk.3,00,000/-
U 5% incentive on total interest charged
Personal Loan :
Personal Loan Scheme for Salaried Officers-

U Emergency expenses for own marriage of a service- holder or his dependents.
U Emergency expenses of urgent surgical operation/ medical treatment.
U Emergency educational expenses of the children for admission/purchase of books,

examination fees etc.
Special Features :
U Any permanent salaried employee aged between 20 to 55 years is eligible to get loan.
U No collateral security is required.
U Maximum Amount of loan Tk. 1,00,000.
U Maximum period of loan upto 3 years.
10
Deposits Products:
Saving Account:
U Any Bangladeshi National residing home or abroad may open savings

account with UBL.
U The account may be opened in single/joint name.
U The account holder may nominate his nominee in this account.
U The nominee can get the balance amount without submitting succession
certificate after the death of account holder.
Features :
U Minimum amount : Taka 1,000.00

U Rate of Interest : 4.50%
U Free Cheque-Book facility
U Opportunity to apply for - safe deposit locker facility
U Collect foreign remittance in both T.C. & Taka draft.
U Transfer of fund from one branch to another by
o Demand Draft
o Mail Transfer
o Telegraphic Transfer
U Transfer of fund on Standing Instruction Arrangement
U Collection of cheques through Clearing House.
U Issuance of Payment Order / Call Deposit.
Special Notice Deposit:
11
U Govt., Semi-Govt., Autonomous organization and an
individual may open SND Account with UBL.
U 7 days notice required to withdraw.
Equal and Equal and

Equal and
above 25 above 50 Equal and
Deposit Below 1 above 1 crore
crore and crore and above 100
Amount crore and below 25
below 50 below 100 crore
crore
crore crore
Annual 3.25% 3.30% 3.40% 3.50% 3.60%

Interest Rate
Fixed Deposit Account:

U Any Bangladeshi national residing home or abroad may open FDR with UBL.
U FDR may be opened single/joint name for a period of 3, 6, 12, 24 and 36
months.
U UBL offers attractive/competitive rate of interest in FDR.
Fixed Deposit (FDR) Rate of Interest

3 months & above but less than 6 months 9.75%
6 months & above but less than 1 year 10.00%
1 year & above but less than 2 years 10.25%
2 years & above but not more than 3 years 10.50%
Double Benefit Deposit Scheme:
a) Any adult Bangladeshi National will be eligible to open this account.
b) Minimum Tk.1,00,000/- (Taka One Lac only) and multiples thereof will be accepted as
deposit under this scheme.
c) The period shall be of 8.5 (Eight years Six months) years term.
d) Deposit may be encashed before its maturity and no interest will be paid
if encashed before 1(one) year of deposit.
12
e) Interest will be paid at Savings rate if encashed after 1(one) year.
f) Advance will be allowed up to 80% of the deposit after completion of

one year
g) Full amount including interest will be paid on maturity.
h) Govt. tax, Surcharge, Source Tax, Levy, Govt. Excise duty will be recovered from the
depositor’s A/C.
i) Account holder can appoint a nominee against the account.
j) Bank reserves the right to close the account at any time and make
amendment / alteration of the terms & conditions of the scheme
without assigning any reason.
Monthly Deposit Scheme
a) Any adult Bangladeshi National will be eligible to open this account.
b) The period of the scheme will be 5 (five) years and 10 (ten) years term.
c) Monthly installment will be Tk.500/-, 1000/-, 2000/-, 3000/-, 5000/- & 10000/-
d) Monthly installment to be deposited within 10th day of the month.

After due date a penalty of Tk.50/- will be realised from the A/C holder.
If the A/C holder fails to deposit 3(three) consecutive monthly
installments,the account will be automatically closed.
e) No cheque book will be issued against the account.
f ) Deposit may be encashed before maturity. But no interest will be

paid if encashed before 1(one) year of deposit.
f) Advance will be allowed up to 80% of the deposit after completion of

one year
g) Interest will be paid at Savings rate if encashed after 1(one) year of

deposit.
h) Advance will be allowed upto 80% of the deposit after completion

of one year.
i) Full amount including interest will be paid on maturity.
j) Govt. tax, Surcharge, Source Tax, Levy, Govt. Excise duty will be recovered from the
13
depositor’s A/C.
k) Account holder can appoint a nominee against the account.
l) Bank reserves the right to close the account at any time and make
amendment / alteration of the terms & conditions of the scheme
without assigning any reason.
Financial Highlights
UTTARA BANK LIMITED
Highlights on the overall activities of the bank for the year 2010 and 2009
Sl. Particulars 2010 2009 Change
in
No Taka Taka %
.
1 Paid-up-Capital 2,395,977,600 50
1,597,318,400
2 Total Capital (Teir -I+II) 7,920,588,892 36

5,829,047,757
3 Capital surplus/(Deficit) 1,633,188,892 -24

2,140,806,757
4 Total Assets 71,945,998,489 13

81,451,822,803
5 Total Deposits 59,384,263,18 11
65,868,030,947 2
6 Total Loans & Advances 39,451,355,57 23
48,672,687,127 1
7 Total Contingent Liabilities 9,377588,319 10
8,560,482,934
14
8 Advance/ Deposit Ratio (%) 0.74:1 0.66:1 12
9 Ratio of Classified Loan to total Loans & Advances 5.50% 7.20% -24
(%)
10 Profit after tax & provision 1,105226,569 40
1,551,880,726
11 Amount of classified loan during the current 925.300.000 -11
year 1,038,900,000
12 Provision kept against classified loans -18
391,983,437 475,526,169
13 Provision surplus /(deficit) 20,443,169 37
28,072,927
14 Cost of Fund (%) 4.74% 4.94% -4
15 Interest earning Assets 59,741,714,62 9
65,036,584,230 7
16 Interest non-earning Assets 12,204,283,86 35
16,415,238,573
17 Return on Investment (ROI) % 11.87% 8.18% 45
18 Return on Assets (ROA)% 1.91% 1.54% 24
19 Income from Investment 2,206593,581 20
1,840,039,983
20 Earning per Share (Taka) 64.77 69.19 -6
21 Net income per Share (Taka) 6.48 4.61 41
22 Price Earning Ratio (Times) 25.64 20.96 22
23 Net Assets value per share 35.94 38.86 -8
Introduction of the Report
Internship program is a pre-service training designed to render practical experience of a given

job. In other words to employ achieved knowledge hand in hand is called internship. This is a
process of acquiring practical knowledge about some theoretical lessons. It’s most important
aspect is to know the practical lessons. As a practical subject, management needs practical
lesson. That is why MBA program includes internship training from the practical field.
Internship is a system, when a student can compare theoretical concept with practical
situation that position is internship and the report, which is published, based on the data or
information is called internship report.
2.1 Origin of the report
15
This report is prepared as an internship report on the basis of my practical knowledge being
an internee in Uttara Bank Limited at Dar-us -Salam Road, Mirpur-1 Branch. Long three
months of practical experience and assistance from my workplace made me able to prepare
the report under the guidance of my supervisor Dr. Md. Kamrul Bari, Department of Finance.
MBA course has been designed as a combination of theoretical and practical knowledge. As
an integral part of MBA program, this report has been prepared following the specific
guidelines.
2.2 Objectives of the report
Education in business arena can hardly be complete without practical knowledge. It’s all very
well to be bookish but nothing can be compared with first hand knowledge. Report writing
certainly bridges the gap between things we learn through the course of formal education and
practical aspects of those things. And, it won’t be an exaggeration if one goes that far to say
that without proper working knowledge of real life business, economic and financial
situation; formal education in business field is of very little use.
There are some specific objectives of this study which are pointed below-
1. To analyze the Financial performance over the years of a renowned bank;

2. To overview the financial structure and strength of the bank;
3. To assess the relationship between net income with deposits and loans;
4. To analyze the competitive performance with the Islami Bank Bangladesh Limited;
5. To point out the strengths, weaknesses, opportunities and threats of the bank;
6. To identify problems and search for probable recommendations
2.3 Methodology
The report is prepared following the systematic procedure of choosing topic to submission.
The overall methodology will be like-
16
I. Nature of the report: The report is a descriptive one.
II. Study Design: The study is performed based on the information extracted from
different sources collected by using a specific methodology. After gathering all the
information required, expected result of the report was come up. The study was fully a
descriptive in nature. The study was conducted using the participatory method. To
know the in-depth information, the topic was discussed with the expert professionals
related to bank for several times and review of record of Uttara Bank Limited and
other related secondary information. The purpose was to get an idea about the whole
activities of the branch where I did my practical orientation. Statistical data and other
relevant information were gathered from secondary sources including Web Page Blog
annual reports several journals and booklets.
III. Data collection: The report is prepared mainly using available secondary data. But
some primary data were required as well, which have been collected-
Primary data: Face to face conversation with the regarding officers and some
documents used in banks given by the officers.
Secondary data: The annual reports of UBL from 2005-2010 and Bangladesh Bank
of 2009, various articles, journals, books, news bulletins etc are the source of
information as well.
IV. Classification, analysis, interpretation and presentation of data:

To evaluate the Balance sheet structure, some calculations of ratio analysis, trend
analysis and SWOT analysis from both numerical and non-numerical information
of UBL as well as the data of IBBL are used;
A comparative analysis with the IBBL is done with the help of various data with
proper statistical presentation.
V. Findings of the report: Based on the statistical and theoretical analysis the findings
are presented and some recommendations are also given.
2.4 Limitations
17
Though a very comprehensive and a well-organized report has been tried to be produced but
there are still some limitations present here
Many of the recent Banking data were unavailable at time of preparing the report;
Time limitation is major factor, which hinders the data collection process. Due to time
limitation many aspect could not be discussed in the present study.
The communication gap among the different personnel because of excessive workload
Confidentiality of data was another important barrier that was confronted during the
conduct of this study. All the concerned personnel of the bank have not been interviewed.
Working in an organization and preparing a report at a time was difficult.
18
Financial Performance Evaluation of Uttara Bank Limited
In a developing country like Bangladesh the banking system as a whole play a vital role in
the progress of economic development. The health of the economy is closely related to the
soundness of its banking system. A bank as a matter of fact is just like a heart in the
economic structure and the Capital provided by it is like blood in it. As long as blood is in
circulation the organs will remain sound and healthy. If the blood is not supplied to any organ
then that part would become useless.
Performance indicates the degree of management’s success in allocating the sources of the
firm’s capital to productive use and is focused in the market value of the firm’s capital
performance may be as the accomplishment of the goals which are taken under consideration.
Evaluation is a judgment worth of something and like all judicial matters, it calls for justice
equity and good conscious on the part of the person making the evaluation. Performance
evaluation is an essential tool of management. It is relevant both in seeking answers to
various questions and also in generating questions to be asked about area or activities in
which performance might be improved.
Performance evaluation of a renowned bank like Uttara Bank Limited can represent today’s
banking scenario of Bangladesh. The evaluation is done through several analyses.
The analysis through which the whole evaluation is made are:
1. Balance Sheet analysis
2. Income Statement analysis
3. Ratio analysis
4. DuPont analysis (ROA & ROE)
19
3.1 Balance Sheet Analysis
The balance sheet is an important instrument in analyzing a company’s financial health; it is

best described as a snapshot of a businesses’ financial condition at any given moment. The
financial statement must “balance” in that the company’s assets are equal to the amount of
liabilities and shareholder equity. In the case of banks, total assets consist largely of loans
that will eventually be repaid to the bank with interest. Also, cash and due from other banks
make up a significant portion of assets. On the other side of the balance sheet, deposits
comprise a majority of liabilities, since they are customer accounts that can be withdrawn.
Asset Structure: The total assets of UBL stood at Tk 78,353.89 million on 30th June, 2010
which is an increase of 8.9% from the 2009. The increase of Assets is determined by
Investments, Loans and advances and money at call and short notice.
Total Assets of UBL:
Total Assets of UBL (2005-june 30 2010): MillionTk.
Year 2005 2006 2007 2008 2009 2010

Total Assets 42,062.20 45,217.00 52,860.33 58,444.33 71,945.99 78,353.89
(million Tk)
Growth Rate 7.5% 16.9% 10.6% 23.1% 8.9%
Average 13.4%
Growth rate
20
Comment: The average growth rate of assets is 13.4% where the growth rate in 2009 is
23.1%, which is almost double of the average rate. The higher growth of total assets is due to
higher growth of loans and advances.
Assets mix:
Asset mix is an important task of banking institutions. Banks largest asset is the loans and
advances. The percentage of loans and advances in 2009 is much lower than that of 2008
where the percentage of investment in 2009 is much higher than that of 2008.
21
The assets are described below:
Cash: Cash includes cash in hand and balance with Bangladesh Bank. Cash in hand stood at
Tk. 1,341.4 million in 2009 which is lower than that of the previous year. But the over all
cash trend is relatively stable. In June 2010 cash in hand is Tk 1,472.87 million.
Balance with other banks and financial institutions: During the year 2009, balances
maintained with other banks and FIs decreased by 18.52% amounted to Tk 285.9 million.
The overall trend of this item is similar to cash.In 2010 June Balance with other bank is
3,584.43 million
Money at call and short notice: During the year 2009, balances maintained with Money at
call and short notice increased by Tk 299.8 million amounted to Tk 329.7 million.In June
2010 Balance is maintained 779.70 million.
Investment: the bank’s investment during the year 2009 were mostly in government
securities which stood at Tk 22,344.1 million as against Tk 11, 091.8 million making a
growth of 101.44 percent over the year. The Uttara Bank Ltd is a primary dealer of
Government securities. The bank as a primary dealer is to purchase the unsold Bond/Bill
which is put to auction in order to keep underwriting commitment. The bank invested total Tk
22,502.5 million in 2009as compared to Tk. 11,188.3 million of the previous year.In 2010
June total investment is 19,521.76 million.
The Investments of UBL from 2005 to 2010 june 30 are as follows:
Million Tk.
22
Year 2005 2006 2007 2008 2009 2010
Investments 10,062.10 9,564.54 14,455.78 11,188.29 22,502.48 19,521.76
Growth rate -5% 51% -23% 101% -13.24%
Trend of Investments:
From the above graph, we see that the trend of investments is much volatile over the years. In
2007 and 2009 there were growth but in other three years there were negative growth.
Loans and Advances: In 2009 UBL registered a steady growth in the credit portfolio posting
a growth of 6.22 percent. Total loans and advances of the bank stood at Tk 39,451. 4 million
during the year 2009 compared to Tk 37,141.3 million of the previous year. In June 2010
Loans and Advances is 40,890.33 million.
The Loans and Advances of UBL from 2005 to 2010 june 30 are as follows: Million
Tk
Year 2005 2006 2007 2008 2009 2010
Loans & 21,851.54 25,163.86 28,477.41 37,141.34 39,451.35 40,890.33
Advances
Growth rate 15% 13% 30% 6% 3.64%
Trend of Loans and Advances:
23
From the above graph, we see that the loans and advances were increasing over the years.
The growth rate was highest in 2008, which was 30%. However, in the following year it
became the lowest that was 6%.
Liabilities: Total Liabilities include Borrowing from other banks and financial institutions,
deposits and other liabilities. Total liabilities of the bank stood at Tk. 65,739.0 million as of
31 December 2009 registering a growth of 20.06% percent over the last year. This was
mainly due to increase in the customer’s deposits.In June 2010 Total liability is 69,798.03
million.
Total Liabilities of UBL from (2005-2010 june 30 ): Million Tk.
24
Year 2005 2006 2007 2008 2009 2010
Total 40,197.17 43,131,56 50,406.77 54,755.48 65,739.04 69,798.03
Liabilities
Growth rate 7% 17% 9% 20% 6.17%
Average 11.83%
growth rate
Comment: The growth rate of total liabilities in 2009 is 20% and the average growth rate in
six years is 12%. The excessive higher growth in 2009 is due to higher growth in deposits.
Liability mix: The bank’s liability is consisted of various items such as deposits,
borrowings from other banks and financial institutions, other lisbilities etc.
The liability items are described below:
25
Borrowing from Other Banks and Financial Institutions: The function of treasury
division is borrowing and lending from money market. Borrowing from other banks, financial
institutions and agents including overnight borrowing stood at Tk. 1,176.4 million as on 31
December, 2009 compared to Tk. 225.1 million at the end of 2008. In June 2010 borrowing
stood at Tk 262.95 million
Deposits: The bank’s principal source is deposits. The bank’s deposit stood at Tk. 59,387.3
million as on 31 December, 2009 compared to Tk. 50,817.0 million in 2008, thus recording
16.87% growth. In June 2010 Deposit stood at Tk 63,581.52 million.
The deposit position of UBL is as follows:
Million Tk.
Year 2005 2006 2007 2008 2009 2010
Deposits 36,891.91 39,360.20 43,586.56 50,816.75 59,387.26 63,581.52
Growth rate 6.7% 10.7% 16.6% 16.9% 7.06%
Trend of Deposits:
From the above graph, we see that he trend of deposits is upward moving over the years. The
bank is attracting more clients.
Capital Analysis and Adequacy

The authorized capital of the bank increased from Tk. 1,600.0 million during the year 2009.
The paid up capital of the bank has been increased to Tk. 1,597.4 million from Tk. 798.7
million due to declaration of 100 percent bonus share in 2009.In June 2010 Capital stood at
Tk 8555.86 million.
Total Capital/Shareholder’s Equity of UBL in last six years are as follows:
Year 2005 2006 2007 2008 2009 2010
Total capital 1,865.04 2,085.43 2,453.55 3,688.84 6,206.94 8,555.86
Growth rate 12% 18% 50% 68% 37.84%
26
`
Comment: Every year there is a growth in shareholder’s capital. However, in 2008 and in
2009 there is a high growth in total capitals, which are 50% and 68%. The declaration of
bonus share caused this growth.
3.2 Income statement analysis
27
The income statement of a bank is indicative of their investments and the loans they provide;
a majority of revenue comes from these two items. The other major source of revenue is
noninterest income. Noninterest income is derived from numerous activities such as fees and
commissions for services conducted by banks, such as underwriting securities or the sale of
insurance. Net gains or losses on loans and leases also attribute to noninterest income. Banks
are continually attempting to increase their noninterest income and reduce noninterest
expense, which usually overhead expenses, intangible amortizations, and goodwill
impairment. Noninterest expense generally exceeds noninterest income, and the difference is
the bank’s burden.
Net Income: Net income is the major indicator of profitability. To arrive at net income,
banks first begin with net interest income, subtract the burden and provisions for loan losses,
add securities gains/losses, and subtract taxes.
Net Income of UBL in last six years are as follows: value in million.
Year 2005 2006 2007 2008 2009 2010

Net Income 142.59 248.75 409.53 1,138.53 1,105.22 793.62
Growth rate 74% 65% 178% -3% -28%
Average Growth rate 57.2%
28
Comment: UBL has been able to increase their net income in a huge amount. The net
income in 2008 is almost three times of the net income in 2007. Though there is a little
decline in 2009 it is still much better than the first three years. In une 2010 its still declining.
Interest Income and Interest Expense

Interest income is the total of all interest and fees earned on interest bearing assets, such as
loans, securities, and deposits held at other financial institutions.
Interest expense is the sum of interest an institution pays out on interest bearing liabilities.
Such items include interest on transactions accounts, time and savings deposits, and interest
on long-term debt.
The interest income, interest expense, growth rate and net interest income of UBL in last five
years and in june 2010 are shown in table:
2005 2006 2007 2008 2009 2010

2,0 2,74 2
Interest Income 00.87 2.04 ,997.43 4,084.28 4,492.43 2,262.23
Growth rate 37% 09% 36% 10% -49.64%
1,4 1,75 1
Interest Expense 77.76 6.83 ,876.35 2,200.53 2,790.42 1434.24
Growth rate 19% 7% 17% 27% -48.60%
523 985. 1,1
Net Interest Income .11 20 21.08 1,883.76 1,702.00 827.99
Growth rate 88% 14% 68% -10% -51.35%
The trend of interest income and interest expense of UBL in last six years is as follows:
29
Comment: both interest income and interest expenses are increasing over the last six years.
All the years except 2009 the net interest incomes were positive. The growth rates of net
interest income are volatile. The scenario of 2009 is depressing. The growth rate of NI is
negative which indicates an alarming situation.
3.3 Ratio Analysis:
Ratio Analysis enables the business owner/manager to spot trends in a business and to
compare its performance and condition with the average performance of similar businesses in
the same industry. Ratio analysis may provide the all-important early warning indications that
allow one to solve business problems as well as to analyze the performance of the business.
To evaluate various performances, there are some ratio analyses calculated under four
different categories.
Liquidity indicating ratios
Loan to Deposit Ratio: for banking institutions Loan to Deposit ratio is very significant
liquidity ratio. It indicates what percentage of total deposits is being provided as loans
and advances. When this ratio is high, it is assumed that, the bank is using either a large
loan portfolio or large amounts of non-deposit funds to finance assets. The loan deposit
ratio should not exceed 80% (as 20% of DTL is required for statutory requirements).
Again less than 75% means too much restrictive loan policy. It may affect the
profitability.
30
This ratio is calculated as follows:
Total Loan & Advances

Loan to Deposits =
Total Deposits
The UBL’s Loan to Deposit ratios of last 5 years and in june 2010 are like following:
Year 2005 2006 2007 2008 2009 2010

Loan to Deposit Ratio 59.23% 63.93% 65.34% 73.09% 66.43% 64.31%
Comment: The Loan to Deposit ratio of UBL represents a very restrictive policy. Though it
has been increasing in recent years it is far below than 80%. But it indicates good liquidity
position.
31
Current Ratio: Current Ratios is also very important for banks. Current ratio measures
the available current assets against current liabilities.
The calculation as follows
Total Current Assets

Current Ratio =
Total Current Liabilities
The UBL’s Current Ratios of last 6 years are like following
Year 2005 2006 2007 2008 2009 2010

Current Ratio
0.77 0.77 1.05 1.04 0.98 0.68
Comment: The overall current ratios of UBL in last six years are not up to the mark. The
ratio should be more than 1. The ideal ratio is 1.5 to 2 where the ratios of UBL are much
lower than the ideal ratio. Only in 2007 and 2008 it was above 1. But other four years the
ratios were below 1 which indicates a liquidity deficiency.
32
Cash Ratio: Cash Ratio measures the ability to meet the current liabilities by cash in
hand. It means the instant ability to pay short term liabilities. The calculation is shown
below:
Cash in Hand
Cash Ratio =
Current Liabilities
Year 2005 2006 2007 2008 2009 2010

Cash Ratio 3% 3% 6% 4% 3% 2%
Comment: Cash ratios of UBL in these six years are more or less stable. It ranges between
3% to 4%. But in 2007 it was almost double which was 6%.
Profitability Ratios:
ROA: The Return on Assets (ROA) percentage shows how profitable a company's assets
are in generating revenue. The higher the percentage of return, the higher the efficiency of
assets. The calculation as follows:
Net Profit after Tax
Return on Assets (ROA) =
Total Assets
33
The ROAs of UBL in last 5 years and year in 2010 june are as follows:
Year 2005 2006 2007 2008 2009 2010

ROA 0.34% 0.55% 0.77% 1.95% 1.54% 1.01%
Comment: From 2005 to 2008 there is a upward trend of ROA. But in 2009 the ROA is
1.54% which is much lower than the ROA in 2008 which was 1.95%. The ROAs in 2008 and
2009 are much higher than the ROAs in last four years.June 2010 ROA is still declining.
ROE: Return on Equity (ROE) measures how much shareholders earned on the
investment in the company. It measures a firm's efficiency at generating profits from
every unit of shareholders' equity (also known as net assets or assets minus liabilities).
ROE shows how well a company uses investment funds to generate earnings growth.
Higher percentage of ROE refers higher efficiency in using equity fund.
The calculation of RE is as follows:
ROE =
Shareholder’s Equity
The ROEs of UBL in last 5 years and in year june 2010 are as follows:
Year 2005 2006 2007 2008 2009 2010

ROE 7.65% 11.93% 16.69% 30.86% 17.81% 9.27%
Trend of ROE:
34
Comment: The trend of ROE is as same as ROA. Until 2008 the trend was upward. But in
2009 and June 2010 the trend became downward.
Net Profit margin: Net Profit Margin is the most important margin. It is obtained by
dividing the Net Income by the total interest income. The calculation is like-

Net Profit Margin =
Total Interest Income
The last 5 years and year in june 2010 Net Profit Margins were as follow:
Year 2005 2006 2007 2008 2009 2010

NPM 7.13% 9.07% 13.66% 27.88% 24.60% 35.08%
Comment: Net Profit margin of UBL was upwarding until 2008. From 2007 to 2008 it
increased more than 100%. But it could not continue in the following year. Where the margin
35
was 27.88% in 2008, the margin became 24.60% in 2009. But still it remained much better
than the first three years.In June 2010 Net profit margin is increasing 35.08%.
EPS: Earning per Share (EPS), one of the major concern for investor, indicate the
earnings of the firm against its’ each share or stock. This ratio usually used to find out the
operating efficiency of the firm against its’ total number of share.
The calculation is as follows:

EPS =
Number of Total Outstanding Shares
The EPS of UBL in last six years are as follows
Year 2005 2006 2007 2008 2009 2010

142.83 124.59 102.56 142.56 6.91 6.48
EPS
Trend of EPS:
Comment: The trend of EPS of UBL is much volatile during the six years. The highest EPS
was in 2005 which is 142.83 which is much similar to the EPS of 2008 which was 142.56.
But in 2009 it was the lowest of the six years which is only 69.19.
Efficiency ratios:
36
Total Operating expense/Total operating income: This ratio is the measure of a banks’
ability to control noninterest expense relative to operating income. It indicates how much
a bank pays in noninterest expense for one Taka of operating income. Banks try to
minimize this ratio to achieve efficiency.
The calculation is like:
Total operating expense
Operating expense/operating income =
Total operating income
The ratios of UBL of last six years are following:
Year 2005 2006 2007 2008 2009 2010

OE/OI 42% 52% 53% 44% 45% 40.98%
Trend in last six years:
Comment: The efficiency ratio ranges from 42% to 53%. The trend of the ratio is fluctuating
over the years. Though the ratio dropped in 2008, it increased slightly in 2009.June 2010 it is
41%.
Financial ratios:
Equity Multiplier: The most significant ratio that provides the true picture of
capitalization is leverage ratio or equity multiplier. Equity multiplier is calculated by
dividing total assets by total equity. The calculation is as follows
Total Assets
37
Equity Multiplier =
Total Shareholder’s Equity
The equity multipliers of UBL in six years are as follows:
Year 2005 2006 2007 2008 2009 2010

Equity
22.55 21.68 21.54 15.84 11.59 9.15
Multiplier
Comment: High equity multiplier can increase the ROE and the growth rate of the bank as
long as ROA is positive. The equity multiplier trend was or less stable until 2007. But in
2008 and 2009 and June 2010 it decreased.
Debt Ratio: The ratio measures the percentage of total debt against the total assets. It
provides information about protection of creditors from insolvency and the ability of
firms to obtain additional financing for potentially attractive investment opportunities.
The lesser the ratio the better the financial position of the bank.
The calculation is as follows
Total Debt
Debt Ratio =
Total Assets
38
The Debt ratios of UBL in last six years are as follows
Year 2005 2006 2007 2008 2009 2010

Debt
96 % 95% 95% 94% 91% 89%
Ratio
39
Trend of Debt Ratio:
Comment: The debt ratio is more or less stable during the years. In 2009 the ratio was 91%
which is the lowest of all ratios. It indicated a good financial position.June 2010 it is 89.00%.
40
Comparative analysis between UBL and IBBL
Introduction Of IBBL : Bangladesh is one of the largest Muslim countries in the world.
The people of this country are deeply committed to Islamic way of life as enshrined in the
Holy Qur'an and the Sunnah. Naturally, it remains a deep cry in their hearts to fashion and
design their economic lives in accordance with the precepts of Islam. The establishment of
Islami Bank Bangladesh Limited on March 13, 1983, is the true reflection of this inner urge
of its people, which started functioning with effect from March 30, 1983. This Bank is the
first of its kind in Southeast Asia. It is committed to conduct all banking and investment
activities on the basis of interest-free profit-loss sharing system. In doing so, it has unveiled a
new horizon and ushered in a new silver lining of hope towards materializing a long
cherished dream of the people of Bangladesh for doing their banking transactions in line with
what is prescribed by Islam. With the active co-operation and participation of Islamic
Development Bank (IDB) and some other Islamic banks, financial institutions, government
bodies and eminent personalities of the Middle East and the Gulf countries, Islami Bank
Bangladesh Limited has by now earned the unique position of a leading private commercial
bank in Bangladesh.
4.1.1 Asset Structure:

Year 2006 2007 2008 2009 2010
Total Assets 45,217.00 52,860.33 58,444.33 71,945.99 78,353.89

(million Tk)
Growth Rate 16.9% 10.6% 23.1% 8.9%
Average 14.87%
Growth rate
41
Total Assets of IBBL (2006-june 30 2010): MillionTk.
Year 2006 2007 2008 2009 2010

Total Assets 150,252.82 191,362.34 230,879.14 278,302.84 320,363.70
(million Tk)
Growth Rate 27.36% 20.65% 20.54% 15.11%
Average 20.91%
Growth rate
Comment: The average Assets growth rate of UBL is 14.87% and IBBL is 20.91% which is
the 6.04% more than UBL. but in 2009 UBL growth rate is more (23.10%) than IBBL
(20.54%).
42
4.1.2 Investment:
Total investment of UBL (2006- june30 2010): Million Tk.
Year 2006 2007 2008 2009 2010
Total Assets 9,564.54 14,455.78 11,188.29 22,502.48 19,521.76

(million Tk)
Growth Rate 51% -23% 101% -13.24%
Average 28.94%
Growth rate
Total investment of IBBL (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010
Total Assets 113,575.07 144,920.6 180,053.93 214,615.80 245,367.40

(million Tk)
Growth Rate 27.59% 24.24% 19.19% 14.32%
Average 21.33%
Growth rate
43
Comment: The average investment growth of UBL is 28.94% and IBBL is 21.33% , so we can
say that in investing sector UBL is doing much better compared to IBBL. But in 2006 & 2010
UBL has negative growth.and for IBBL there is no negative growth.
4.1.3 Liability Structure:

Total Liability of UBL (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Total 43,131.56 50,406.77 54,755.48 65,739.04 69,798.03
Liabilities
Growth rate 17% 9% 20% 6.17%
Average 13.04%
growth rate
Total Liability of IBBL (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Total 140245.58 179521.01 216818.64 258197.29 297,753.95
Liabilities
Growth rate 28.00% 20.77% 19.08% 15.32%
Average 20.79%
growth rate
44
Comment: Between 2006 to 2010 June The average liability growth rate of UBL is 13.04%
and IBBL is 20.79%. the liability position of UBL is better than IBBL.In (2008-2009) UBL
growth has increased from 9% to 20% this is bad for UBL.for IBBL rate has decreased from
20.77% to 19.08%.this is good for IBBL.
4.1.4 Capital Structure:

Total Capital of UBL (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Total capital 2,085.43 2,453.55 3,688.84 6,206.94 8555.86
Growth rate 18% 50% 68% 37.84%
Total Capital of IBBL (2006-june 30 2010): Million Tk.
45
Year 2006 2007 2008 2009 2010
Total capital 10007.23 11841.33 14060.49 20105.54 22,609.75
Growth rate 18.32% 18.74% 42.99% 12.45%
Comment: From 2007 to 2010 June The average Capital growth rate of UBL is 43.46% and
IBBL is 23.12.average capital growth rate of UBL is strong compared to IBBL.
4.1.5 Net income:

Net Income of UBL (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Net Income 248.75 409.53 1,138.53 1,105.22 1,551.88
Growth rate 65% 178% -3% 40.36%
Average Growth rate 70%
Net Income of IBBL (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Net Income 1,400.59 2,049.0 2,674.79 3,403.55 3,528.06
46
Growth rate 30.54% 27.24% 46.29% 3.67%
Comment: Between 2007 to 2010 June 30, the average Net Income growth rate of UBL is
53% and IBBL is 26.93%.so we can say that UBL net income is much better compared to
IBBL. But in UBL there is a negative growth rate for year 2009 and 2010 whether there is no
negative growth for IBBL.
4.1.6 ROA:
ROA of UBL (2006-june 30 2010):
Year 2006 2007 2008 2009 2010
47
ROA 0.55% 0.77% 1.95% 1.54% 1.01%
ROA of IBBL (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

ROA .93% 1.07% 1.15% 1.22% 1.10%
Comment: In 2008 there is highest trend of ROA for UBL and in 2006 there is lowest trend
of ROA. In 2009 ROA of UBL is 1.54% and IBBL is 1.22%,so UBL has performed well in
2009 but in 2010 IBBL is 1.10% and UBL is .01%,so IBBL is performing well.
48
4.1.7 ROE:
ROE of UBL (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

ROE 11.93% 16.69% 30.86% 17.81% 9.27%
ROE of IBBL (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

ROE 13.99% 17.3% 19.02% 16.92% 15.60%
Comment: For UBL highest ROE is in year 2008 is 30.86% which is almost double than
previous two years. in 2008 ROE of UBl is higher than IBBL but in 2010 June ROE of IBBL
is higher than UBL.
49
4.1.8 EPS:
EPS of UBL (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

124.59 102.56 142.56 6.91 6.48
EPS
EPS of IBBL (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

EPS 485.96 37.55 56.29 55.10 36.53
Comment: In 2009 EPS of UBL is 6.91 and IBBL EPS is 55.10 which is almost 8times
greater than UBL. in June 2010 EPS of UBL is 6.48 and IBBL is 36.53.its also almost 5times
greater than UBL.
4.1.9 Loan to Deposit Ratio:

Loan to deposit ratio of UBL (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

Loan to Deposit Ratio 63.93% 65.34% 73.09% 66.43% 64.31%
50
Loan to deposit ratio of IBBL (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

Loan to Deposit Ratio 103.86% 99.55% 93.44% 94.20% 92.06
Comment: For banking institutions Loan to Deposit ratio is very significant liquidity
ratio. It indicates what percentage of total deposits is being provided as loans and advances.
The Loan to Deposit ratio of UBL represents a very restrictive policy. Though it has been
increasing in recent years it is far below than 80%. But it indicates good liquidity
position.IBBL is more than 80% in each year so its better compared to UBL.
4.1.10 Deposit: of UBL (2006-june 30 2010): Million Tk.
51
Year 2006 2007 2008 2009 2010
Deposits 39,360.20 43,586.56 50,816.75 59,387.26 63,581.52
Growth rate 10.7% 16.6% 16.9% 7.06%
Deposit of IBBL (2006-june 30 2010): Million Tk.

Year 2006 2007 2008 2009 2010
Deposits 132,419.03 166,325.28 202,115.44 244,292.13 291,934.60
Growth rate 25.60% 21.51% 20.86% 19.50%
Comment:In each year Deposit growth rate of IBBL is more than UBL.in 2009 UBL
growth rate is 16.90% & IBBL is 20.86%.
Comparative analysis between UBL and HSBC

52
HSBC: In Bangladesh, the HSBC Group's history dates back to 1996 when The Hongkong
and Shanghai Banking Corporation (HSBC) Ltd opened its first branch. Today, the HSBC
Group offers a comprehensive range of financial services in Bangladesh including
commercial banking, consumer banking, payments and cash management, trade services,
treasury, and custody and clearing.
As the world's local bank we never underestimate the importance of local knowledge. And
that knowledge comes from our people. That's why we provide the HSBC team with an
environment that combines local cultural awareness with exposure to international business.
It's the world's local team.
HSBC Holdings plc, a global banking and financial services organisation with a vision to be
the leading financial services company in Bangladesh, is headquartered in the United
Kingdom.
We at HSBC believe the only way to truly understand a country and its culture is to be part of
it. That's why all of the HSBC Group's offices around the world are staffed by local people.
Their insight enables us to recognize opportunities that are invisible to outsiders, and provide
financial solutions that are more relevant to our customers' lives. However, that insight
doesn't just profit local customers. Best practices and ideas are then shared throughout the
HSBC network, so that everyone who banks with us can benefit.

Year 2006 2007 2008 2009 2010
Total Assets 45,217.00 52,860.33 58,444.33 71,945.99 78,353.89

(million Tk)
Growth Rate 16.9% 10.6% 23.1% 8.9%
Average 14.87%
Growth rate
Total Assets of HSBC (2006-june 30 2010): MillionTk.
Year 2006 2007 2008 2009 2010

Total Assets 41,741.91 55,533.29 64,583.72 69,350.32 81,338.34
(million Tk)
Growth Rate 33.04% 16.29% 7.38% 17.28%
Average 18.49%
53
Growth rate
Comment: The average Assets growth rate of UBL is 14.87% and HSBC is 18.49% which
is the 3.62% more than UBL. but in 2009 UBL growth rate is more (23.10%) than HSBC
(7.38%).
54
4.2.2 Investment:
Year 2006 2007 2008 2009 2010
Total Assets 9,564.54 14,455.78 11,188.29 22,502.48 19,521.76

(million Tk)
Growth Rate 51% -23% 101% -13.24%
Average 28.94%
Growth rate
Total investment of HSBC (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Total Assets 3,782.31 2,459.64 10,341.76 18,390.04 5,779.05
(million Tk)
Growth Rate -34.98% 320% 77.83% -68.57%
Average 73.57%
Growth rate
55
Comment: The average investment growth of UBL is 28.94% and HSBC is 73.57% , so we
can say that in investing sector UBL is doing worse compared to HSBC. but in every year total
amount of investment of UBL is higher than HSBC.

Year 2006 2007 2008 2009 2010

Total 43,131.56 50,406.77 54,755.48 65,739.04 69,798.03
Liabilities
Growth rate 17% 9% 20% 6.17%
Average 13.04%
Total Liability of HSBC (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Total 36,716.11 48,800.50 56,661.97 59,985.28 72,713.66
Liabilities
Growth rate 32.91% 16.10% 5.57% 21.21%
Average 18.94%
growth rate
56
and HSBC is 18.94%. the liability position of UBL is better than HSBC.In (2008-2009) UBL
growth has increased from 9% to 20% this is bad for UBL.for HSBC rate has decreased from
16.10% to 5.57%.this is good for HSBC.

Total Capital/equity of UBL (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Total capital 2,085.43 2,453.55 3,688.84 6,206.94 8555.86
Growth rate 18% 50% 68% 37.84%
Total Capital/ equity of HSBC (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Total capital 5,025.79 6,732.78 7,921.75 9,365.03 8,824.68
Growth rate 33.97% 17.66% 18.20% -5.77%
57
HSBC is 16.01% .average capital growth rate of UBL is strong compared to HSBC.
4.2.5 Net income:

Year 2006 2007 2008 2009 2010

Net Income 248.75 409.53 1,138.53 1,105.22 1,551.88
Growth rate 65% 178% -3% 40.38%
58
Net Income of HSBC (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Net Income 1,216.78 1,703.53 1,937.35 2,520.69 2,614.35
Growth rate 40.04% 13.74% 30.09% 3.73%
53% and HSBC is 21.90%.so we can say that UBL net income is much better compared to
HSBC. But in UBL there is a negative growth rate for year 2009 and 2010 whether there is
no negative growth for HSBC.
4.2.6 ROA of UBL (2006-june 30 2010):
59
Year 2006 2007 2008 2009 2010
ROA 0.55% 0.77% 1.95% 1.54% 1.01%
ROA of HSBC (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

ROA 2.91% 3.06% 3.00% 3.63% 3.21%
of ROA. In 2009 ROA of UBL is 1.54% and HSBC is 3.63%,so HSBC has performed well in
2009. and in 2010 HSBC is 3.21% and UBL is 1.01%, so HSBC is performing well.
4.2.7 ROE:
ROE of UBL (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

ROE 11.93% 16.69% 30.86% 17.81% 9.27%
60
ROE of HSBC (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

ROE 24.21% 25.30% 24.45% 26.91% 29.62%
previous two years. in 2008 ROE of UBl is higher than HSBC but in 2010 June ROE of
HSBC is higher than UBL.

Year 2006 2007 2008 2009 2010

Loan to deposit ratio of HSBC (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

61
increasing in recent years it is far below than 80%. But it indicates good liquidity position.For
HSBC its also indicate good position.
4.2.9 Deposit:
Deposit of UBL (2006-june 30 2010): Million Tk.

Year 2006 2007 2008 2009 2010
Deposits 39,360.20 43,586.56 50,816.75 59,387.26 63,581.52
Growth rate 10.7% 16.6% 16.9% 7.06%
62
Deposit of HSBC (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010
Deposits 32,876.72 44,500.88 51,163.85 55,619.05 63,983.47
Growth rate 35.35% 14.97% 8.70% 15.03%
Comment: The average growtha rate of UBL is 12.81% and HSBC is 18.51%.position of
growth of HSBC is strong than UBL.but in year 2008,2009 growth rate of UBL is better than
HSBC.
63
Comparative analysis between UBL and Sonali Bank
Introduction: Sonali Bank was established in 1972 under the Bangladesh Banks
(Nationalisation) Order, through the amalgamation and nationalisation of the branches of
National Bank of Pakistan, Bank of Bhowalpur and Premier Bank branches located in East
Pakistan until the 1971 Bangladesh Liberation War. When it was established, Sonali Bank
had a paid up capital of 30 million taka. In 2001, its authorized and paid up capital were Tk
10 billion and Tk 3.272 billion respectively. The bank's reserve funds were Tk 60 million in
1979 and Tk 2.050 billion on 30 June 2000.

Year 2006 2007 2008 2009 2010
Total Assets 45,217.00 52,860.33 58,444.33 71,945.99 78,353.89

(million Tk)
Growth Rate 16.9% 10.6% 23.1% 8.9%
Average 14.87%
Growth rate
Total Assets of Sonali Bank (2006-june 30 2010): MillionTk.
Year 2006 2007 2008 2009 2010

Total Assets 385,837.47 408,962.72 492,946.14 543,969.26 594,709.67
(million Tk)
Growth Rate 5.99% 20.53% 10.35% 3.32%
Average 11.54%
Growth rate
64
Comment: The average Assets growth rate of UBL is 14.87% and SONALI BANK is
11.54% In 2010 Total value of assets of Sonali Bank (594,709.67) mn is more than
UBL(78,353.89)mn but growth rate of UBL is more than Sonali Bank.
4.3.2 Investment:
Year 2006 2007 2008 2009 2010
Total Assets 9,564.54 14,455.78 11,188.29 22,502.48 19,521.76

(million Tk)
Growth Rate 51% -23% 101% -13.24%
Average 28.94%
Growth rate
65
Total investment of SONALI BANK (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010
Total Assets 69,502.58 82,067.28 95,093.24 113,479.96 125,314.35

(million Tk)
Growth Rate 18.07% 15.87% 19.33% 10.42%
Average 15.92%
Growth rate
Comment: The average investment growth of UBL is 28.94% and SONALI BANK is
15.92% , In 2010 Total value of Investment of Sonali bank is more (125,314.35) mn than
UBL (19,521.76) mn.
66
Year 2006 2007 2008 2009 2010

Liabilities 43,131.56 50,406.77 54,755.48 65,739.04 69,798.03
Growth rate 17% 9% 20% 6.17%
Average 13.04%
Total Liability of Sonali Bank (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Total 385,825.75 428,537.40 468,528.43 513,493.90 560,603.28
Liabilities
Growth rate 11.07% 9.33% 9.60% 9.17%
Average 9.80%
growth rate
67
and SONALI BANK is 9.80%..n (2008-2009) UBL growth has increased from 9% to 20% this
is bad for UBL.for SONALI BANK rate has dincrease from 9.33% to 9.60%. In 2010 liability
of UBL is decreased from 20% to 6.17%

Capital of UBL (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Total capital 2,085.43 2,453.55 3,688.84 6,206.94 8555.86
Growth rate 18% 50% 68% 37.84%
Capital/ of Sonali Bank (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Total capital 13,667.89 18,525.67 24,417.71 30,475.35 34,106.38
Growth rate 35.54% 31.80% 24.81% 11.91%
68
SONALI BANK is 26.07%.average capital growth rate of UBL is high compared to SONALI
BANK. But total Capitals value of Sonali Bank is high than UBL.
4.3.5 Net income:

Year 2006 2007 2008 2009 2010

Net Income 248.75 409.53 1,138.53 1,105.22 1,551.88
Growth rate 65% 178% -3% 40.36%
Average Growth rate 70%
69
Net Income of Sonali Bank (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010

Net Income 1,554.53 1,852.76 2,311.11 3,761.53 3,633.96
Growth rate 19.18% 24.78% 62.74% -3.40%
53% and SONALI BANK is 25.82%.so we can say that UBL growth rate net income is
much better compared to SONALI BANK. But in UBL 2009 there is a negative growth rate
for year 2009 and there is also negative groth in 2010 for SONALI BANK.
70
4.3.6 ROA of UBL (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

ROA 0.55% 0.77% 1.95% 1.54% 1.01%
ROA of Sonali Bank (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

ROA 0.40% 0.45% 0.46% 0.69% 0.61%
of ROA. In 2009 ROA of UBL is 1.54% and SONALI BANK is 0.69%,so Sonali Bank has
performed bad in 2009 and in 2010 SONALI BANK is 0.61% and UBL is 1.01%,so UBL is
performing well.
4.3.7 ROE:
ROE of UBL (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

ROE 11.93% 16.69% 30.86% 17.81% 9.27%
71
ROE of Sonali Bank (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

ROE 11.11% 10.05% 9.46% 12.34% 10.65%
previous two years. in 2008 ROE of UBl is higher than SONALI BANK but in 2010 June
ROE of SONALI BANK is higher than UBL.

Year 2006 2007 2008 2009 2010

Loan to deposit ratio of Sonali (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

72
increasing in recent years it is far below than 80%. But it indicates good liquidity position.
Sonali Bank is also doing better.
4.3.9 EPS:
EPS of UBL (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

124.59 102.56 142.56 6.91 6.48
EPS
EPS of Sonali Bank (2006-june 30 2010):
Year 2006 2007 2008 2009 2010

EPS 21.65 23.22 25.68 41.79 40.38
73
Comment: In 2009 EPS of UBL is 6.91 and SONALI BANK EPS is 41.79 which is
almost 5times greater than UBL. in June 2010 EPS of UBL is 6.48 and SONALI BANK is
40.38.
4.3.10 Deposit of UBL (2006-june 30 2010): Million Tk.

Year 2006 2007 2008 2009 2010
Deposits 39,360.20 43,586.56 50,816.75 59,387.26 63,581.52
Growth rate 10.7% 16.6% 16.9% 7.06%
74
Deposit of Sonali Bank (2006-june 30 2010): Million Tk.
Year 2006 2007 2008 2009 2010
Deposits 285,398.25 322,356.80 364,385.97 406,151.56 451,743.49
Growth rate 12.94% 13.03% 11.46% 11.22%
Comment: The average Deposit growth rate of UBL is 12.81% and Sonali Bank is
12.16% Which is almost same as UBL. In 2010 total deposit of UBL is 63,581.52 mn and
Sonali Bank is 451,743.49 mn.
75
Comparative analysis between UBL IBBL Sonali Bank HSBC
4.4.1Asset Structure: MillionTk.
Name 2006 2007 2008 2009 2010

UBL 45,217.00 52,860.33 58,444.33 71,945.99 81,451.83
IBBL 150,252.82 191,362.34 230,879.14 278,302.84 320,363.70
HSBC 41,741.91 55,533.29 64,583.72 69,350.32 81,338.34
Sonali Bank 385,837.47 408,962.72 492,946.14 543,969.26 594,709.67
Growth rate of Assets

Name 2007 2008 2009 2010
UBL 16.9% 10.6% 23.1% 13.21%
IBBL 27.36% 20.65% 20.54% 15.11%
HSBC 33.04% 16.29% 7.38% 17.28%
Sonali Bank 5.99% 20.53% 10.35% 3.32%
76
Comments: The increase of Assets is determined by Investments, Loans and advances and
money at call and short notice.The more the bank can utilize its assets the more it can make
profit. For UBL from 2007 to 2008 there is down trend of asset,2008 to 2009 upper trend and
09 to 10 again growtha rate fall.For IBBL from 07 to 08 down trend of asset,08 to 09 growtha
rate is almost same but in 2010 growth rate again fall.For HSBC from 2007 to 2009 growtha
rate of asset fall but in 2010 its again rise.For Sonli Bank from 2007 to 2008 rate is upper
trend but 08 to 2010 its still falling.
4.4.2 Investment:
MillionTk.
Name 2006 2007 2008 2009 2010
UBL 9,564.54 14,455.78 11,188.29 22,502.48 18,591.12
IBBL 113,575.07 144,920.6 180,053.93 214,615.80 245,367.40
HSBC 3,782.31 2,459.64 10,341.76 18,390.04 5,779.05
Sonali Bank 69,502.58 82,067.28 95,093.24 113,479.96 125,314.35
77
Growth Rate of Investment
Name 2007 2008 2009 2010

UBL 51% -23% 101% -13.24%
IBBL 27.59% 24.24% 19.19% 14.32%
HSBC -34.98% 320% 77.83% -68.57%
Sonali Bank 18.07% 15.87% 19.33% 10.42%
Comments: Investment is also an important factor for Bank. 2007-2008 UBL growtha rate
is negative, in 09 it increases and there is 101% growtha rate,but in 2010 it decreases
78
again.For IBBL there is down trend of investment for all the year.For HSBC 07-08 upper
trend of investment but 08-10 down trend.For Sonali Bank trnd is mixed.
4.4.3Liability: MillionTk
Name 2006 2007 2008 2009 2010

UBL 43,131.56 50,406.77 54,755.48 65,739.04 72,840.99
IBBL 140245.58 179521.01 216818.64 258197.29 297,753.95
HSBC 36,716.11 48,800.50 56,661.97 59,985.28 72,713.66
Sonali Bank 385,825.75 428,537.40 468,528.43 513,493.90 560,603.28
Growth Rate of Liability

Name 2007 2008 2009 2010
UBL 17% 9% 20% 6.17%
IBBL 28.00% 20.77% 19.08% 15.32%
HSBC 32.91% 16.10% 5.57% 21.21%
Sonali Bank 11.07% 9.33% 9.60% 9.17%
79
Trend is
Comments: Liability is also an important factor for a bank. The Bank accept deposit as
liability if Bank use deposit to provide loan and use this deposit efficiently, bank can generate
profit otherwise this liability negatively affect profit margin.
The total Liability of UBL stood at Tk 72,840.99 million in 2010 which is an increase 6.17%
from the 2009.Total Liability of IBBL stood at tk 297,753.95 mn in 2010 which is an
increase of 15.32% from 2009. Total Liability of HSBC stood at tk 72,713.66 mn in 2010
which is an increase of 21.21% from 2009. Total Liability of Sonali Bank stood at tk
560,603.28 mn in 2010 which is an increase of 9.17% from 2009.Liability trend of UBL is
-upper and down,IBBL is down trend,HSBC 07-09 trend is down but in 10 its again
rises.Sonali its Straight line for all the year.
4.4.4Capital structure: MillionTk
Name 2006 2007 2008 2009 2010

UBL 2,085.43 2,453.55 3,688.84 6,206.94 8,610.83
IBBL 10007.23 11841.33 14060.49 20105.54 22,609.75
HSBC 5,025.79 6,732.78 7,921.75 9,365.03 8,824.68
Sonali Bank 13,667.89 18,525.67 24,417.71 30,475.35 34,106.38
80
Growth Rate of Capital
Name 2007 2008 2009 2010
UBL 18% 50% 68% 37.84%
IBBL 18.32% 18.74% 42.99% 12.45%
HSBC 33.97% 17.66% 18.20% -5.77%
Sonali Bank 35.54% 31.80% 24.81% 11.91%
81
Comments: Capital is another important factor for a bank. If the Bank has enough capital
and utilize ir properly it can generate huge profit.
The total Capital of UBL stood at Tk 8,610.83 million in 2010 which is an increase 37.84%
from the 2009.Total Capital of IBBL stood at tk 22,609.75 mn in 2010 which is an increase
of 12.45% from 2009. Total Capital of HSBC stood at tk 8,824.68 mn in 2010 which is an
decrease of -5.77% from 2009. Total Capital of Sonali Bank stood at tk 34,106.38 mn in
2010 which is an increase of 11.91% from 2009.
4.4.5 Net Income: MillionTk
Name 2006 2007 2008 2009 2010

UBL 248.75 409.53 1,138.53 1,105.22 1551.88
IBBL 1,400.59 2,049.0 2,674.79 3,403.55 3,528.06
HSBC 1,216.78 1,703.53 1,937.35 2,520.69 2,614.35
Sonali Bank 1,554.53 1,852.76 2,311.11 3,761.53 3,633.96
82
Growth Rate of Net Income
Name 2007 2008 2009 2010
UBL 65% 178% -3% 40.36%
IBBL 30.54% 27.24% 46.29% 3.67%
HSBC 40.04% 13.74% 30.09% 3.73%
Sonali Bank 19.18% 24.78% 62.74% -3.40%
Comments: From Net Income we can find that how effectively the Bank is doing its
business.The more the Net Income the more bank is efficient.
The total Net Income of UBL stood at Tk 1551.88 million in 2010 which is an increase of
40.36% from the 2009.Total Net Income of IBBL stood at tk 3,528.06 mn in 2010 which is
an increase of 3.67% from 2009. Total Net Income of HSBC stood at tk 2,614.35 mn in 2010
which is an increase of 3.73% from 2009. Total total Net Income of Sonali Bank stood at tk
3,633.96 mn in 2010 which is an decrease of -3.40%% from 2009.
83
4.4.6 ROA: MillionTk
Name 2006 2007 2008 2009 2010

UBL 0.55% 0.77% 1.95% 1.54% 1.90%
IBBL .93% 1.07% 1.15% 1.22% 1.10%
HSBC 2.91% 3.06% 3.00% 3.63% 3.21%
Sonali Bank 0.40% 0.45% 0.46% 0.69% 0.61%
Comments: The Return on Assets (ROA) percentage shows how profitable a company's
assets are in generating revenue. The higher the percentage of return, the higher the efficiency
of assets. In 2010 UBL ROA is 1.90%,IBBL is 1.10%,HSBC is 3.21% and Sonali Bank is
0.61%.so for year 2010 HSBC is dominating the ROA sector ,UBBL is the second, IBBL 3rd
and Sonali Bank fourth.
84
4.4.7 ROE: MillionTk
Name 2006 2007 2008 2009 2010

UBL 11.93% 16.69% 30.86% 17.81% 18.02%
IBBL 13.99% 17.3% 19.02% 16.92% 15.60%
HSBC 24.21% 25.30% 24.45% 26.91% 29.62%
Sonali Bank 11.11% 10.05% 9.46% 12.34% 10.65%
Comments: It measures a firm's efficiency at generating profits from every unit of

shareholders' equity. Higher percentage of ROE refers higher efficiency in using equity
fund.
For UBL from 2006-2008 there is Upper trend of ROE but in 2009 down trend and in
2010 it almost same as year 09.For IBBL from 2006-2008 upper trend of ROE but 08-
2010 dowm trend.For HSBC from 2006-2008 trend is almost same but from 08-2010 its
increasing.
85
Loan to deposit ratio: MillionTk
Name 2006 2007 2008 2009 2010

UBL 63.93% 65.34% 73.09% 66.43% 73.89%
IBBL 103.86% 99.55% 93.44% 94.20% 92.06%
HSBC 79.78% 75.97% 67.04% 56.93% 75.34%
Sonali Bank 75.23% 68.67% 63.25% 63.87% 57.88%
Comments: It indicates what percentage of total deposits is being provided as loans and
advances. When this ratio is high, it is assumed that, the bank is using either a large loan
portfolio or large amounts of non-deposit funds to finance assets. The loan deposit ratio
should not exceed 80% (as 20% of DTL is required for statutory requirements). Again less
than 75% means too much restrictive loan policy. It may affect the profitability.
For UBL 06-08 upper trend but in 09 trend fall and in 10 trend rises again.For IBBL Down
trend for all the year,For HSBC 06-09 growtha rate has fallen but in 2010 it rises again.For
sonali Bank Growtha rate fallen for all the year.
86
Total deposit: MillionTk
Name 2006 2007 2008 2009 2010

UBL 39,360.20 43,586.56 50,816.75 59,387.26 65,868.03
IBBL 132,419.03 166,325.28 202,115.44 244,292.13 291,934.60
HSBC 32,876.72 44,500.88 51,163.85 55,619.05 63,983.47

Sonali Bank 285,398.25 322,356.80 364,385.97 406,151.56 451,743.49
Growth Rate of Deposit

Name 2007 2008 2009 2010
UBL 10.7% 16.6% 16.9% 10.91%
IBBL 25.60% 21.51% 20.86% 19.50%
HSBC 35.35% 14.97% 8.70% 15.03%

Sonali Bank 12.94% 13.03% 11.46% 11.22%
87
Comments: Deposit is the most important factor of a Bank because the more will be deposit
the more banks can give loan and make profit and using this profit they can enhance their
Assets.
For UBL from 2007-2009 there is down trend of deposit but in 2010 it rises again.For IBBL
Grow rate is decreased for all the year.For HSBC from 2007-2009 growth rate fall but in
2010 it rises again.For Sonaki Bank trend of deposit is almost same for all the year.
Swot Analysis
SWOT analysis plays a significant part in any company. Any company has some internal
strengths and weaknesses, with some external opportunities and threats. In short, SWOT
analysis helps to identify what are the capabilities and capacities of a company.
The SWOT analysis of UBL is described below:
5.1 Strength
1. Huge number branches across the country: UBL has one of the most wide spread
distribution networks amongst private banks in the country. At present, the bank is
operating its all types of business activities with 211 branches in prime locations of
country.
2. Skilled and motivated staffs: Skilled and motivated staffs play a vital role in
achieving top performance
3. Strong capital base: The authorized capital of the bank increased from Tk. 1,600.0
million during the year 2009. The paid up capital of the bank has been increased to
Tk. 1,597.4 million from Tk. 798.7 million due to declaration of 100 percent bonus
share in 2009.
4. Efficient corporate governance: UBL has actively and fully adhered to the
principles of sound corporate governance. UBL continues to ensure the compliance
of Corporate Governance as per Securities and Exchange Commission rules and
regulation.
5. Own Training Institute: There is one major strength of UBL is that it has own
training Institution for its employees, so it doesn’t require to train them in other
training Institutions.
88
5.2 Weaknesses
1. High level of classified loans: The percentage of classified loan of UBL is very high
comparative to the average percentage of PCBs. In every year, the percentage of UBL
is higher than the percentage of average of PCBs. It represents a risky and
disadvantageous position of UBL .
2. Insufficient number of employees: The bank suffers the shortages of human
resource; as a result, they cannot give proper support to the customer as fast as the
multinational bank in the country as a joint venture bank.
3. Narrow Product Line: UBL is operating with few products. The product line does
not have the capacity to meet the diverged nature of banking service demands.
4. Low deposit growth: The bank has been experiencing a slow lower growth of
deposits compared to the IBBL.
89
5.3 Opportunities
1. Brand image: UBL was established as a nationalized bank under the Bangladesh
Bank Order 1972. It was converted into a public limited company later. From then it
has a wide reputation and trustworthiness in the banking sector
2. Increasing demand for banking services : The macro economic indicators inflation,
foreign exchange reserve, GDP growth rate and more precisely the rise in per capita
income have created the favorable opportunity for the growth potential of banking
sector.
3. Expanding Product Line To Meet A Broader Range Of Customer Need : The
increasing demand for banking products and the customers’ requirement for different
forms of banking services have widen the avenue to book the higher level of profit.
4. Lower service charge: Commission and other service charges of UBL are relatively
lower than those of the other banks. It creates a opportunity to grab a large market
share.
5.4 Threats
1. Intensive competition: Multinational as well as the fast growing local banks with
modern products and services are capturing huge market within a short period and
resulting to switch over the existing customers of the bank. Increasing intensity of
competition – may squeeze profit margin.
2. Economic sloth: the economic sloth throughout the world has affected also the
economy of developing country. In this condition it is very difficult to overcome the
sloth and run the business profitably.
3. Default culture among the borrowers: The growing culture of default is affecting
the banking business very badly now a days. Unless the government as well as the
banks take strict steps against it, the whole economy will suffer.
90
6.1 Findings
There are some salient findings were pointed out which are observed at the time of working
as an internee at Uttara Bank Ltd, Dar-Us Salam, Mirpur-1 branch and analyzing the annual
reports and other documents.
1. The loan deposit ratios of UBL indicate a restrictive loan policy because it ranges
from 59.63% to 64.31%. The ratio is never above 80% in these years which indicates
a good liquidity position. The lower loan to deposit ratio may negatively affect the
profitability.
2. On the other hand, the current ratio is depressing. In most of the years, the ratio
remained under 1 where the ideal ratio is 1.5 to 2. It represents a bad liquidity
position.
3. The EPS of 2010 is lowest among the all six years. This is because of two reasons.
Where the net income decreased in 2010 from 2009, the number of outstanding shares
increased. It caused the decrease in the EPS in 2009 and 2010.
4. The overall profitability of UBL in 2009 is worse than 2008. The net profit and net
interest income have fallen in 2009.but again increase in 2010.
5. The efficiency ratios of UBL indicate that the bank is not very efficient. It could not
reduce the ratios.
6. From the DuPont analysis, we see that ROE is most sensitive to the profit margin.
7. From 2008-2009 there is 68% growth rate of classified loan. Classified loan is a
problem of all the banks. The more the percentage is, the more the bank in a bad
position.
8. The deposit growth of Uttara Bank Limited is not enough to support the business
growth. It should take the necessary steps to improve this growth.
9. In , 2008 and in 2010 UBL had negative growth in investment. However, in 2009
there is 101% growth in investment.
10. The bank bears a large number of shortages of human resource; as a result they cannot
give proper support to the customer as fast as the multinational bank in the country as
a joint venture bank.
91
11. There is one major strength of UBL is that it has own training Institution for its
employees, so it doesn’t require to train them in other training Institutions. It’s really a
good sign in their recruitment system.
12. Lack of update products is also a drawback of the general banking area of the UBL.
The bank provides only some limited traditional services.
13. Because of the good working environment and good governance, all most of the
employees are satisfied with the bank.
6.2 Recommendations
There are some areas where some inconsistencies are found out and by taking some
appropriate steps these could be solved. Some recommendations are given below:
Attracting more deposit holders: The deposit growth of Uttara Bank Limited is not
enough to support the business growth. The bank has to take more promotional steps
to attract more clients to increase its deposit level.
Enhancing loan to deposit ratio: The loan to deposit ratio of UBL is far below than
IBBL,HSBC Sonali Bank. The ideal ratio is 80%. But, UBL has never reach to that
level. They are following a very restrictive loan policy. It may cause losing the
earning opportunity. So, they may adopt a flexible loan policy.
Concentrating on none performing loan: The bank has been suffering a high
growth of none performing loan. The management can improve the loan policy to
overcome the problem. Government also has lots of responsibilities to create a
default free economy by forcing more effective law.
Adopting strict loan monitoring policy: The loan monitoring policy of the bank is
not strictly followed. There are loopholes in the policy. Therefore it is suggested that
UBL should set up a separate loan monitoring cell, which will be responsible for
monitoring its total loan portfolio with special care to the problem loan.
92
Enhancing the manpower: The existing manpower is inadequate to serve efficiently
under the excessive pressure. The authority may recruit more employees to serve the
customers. The can recruit experienced employee as well as fresh graduate.
Introducing more product lines: UBL is operating with few products. The product
line does not have the capacity to meet the diverged nature of banking service
demands. The bank can introduce more products based on the market demand.
Trying to improve efficiency level: UBL’s current efficiency level is not
satisfactory. The efficiency ratios suggest this opinion. The overhead expenses high
are increasing over the years. It should be under control.
Improving networking system: Uttara Bank should ensure networking system with
its branches then it could easily transfer data within short time.
Taking more promotional activities: Today’s banking industry is intensively
competitive. Unless taking good promotional activities, a bank will fall backward.
Uttara bank is one of the oldest bank in the country but they hardly take part in any
promotional activities like social welfare or cultural programmes. By participating
these activities the bank can raise more awareness.
6.3 Conclusion
Banks are the heart of the modern economy. Today’s trade and commerce would almost be
impossible without the availability of suitable banking services. The whole world has been
facing the negative impact of economic depression in last two years. However, the world
economy has started to recover from the recession. As a developing country, Bangladesh
could avoid the major impacts of recession. Bangladeshi banks have been able to survive
successfully. The performance of country’s banking sector in recent years is commendable.
There are a number of Private Commercial Banks, Nationalized Commercial Banks and
foreign Banks operating their activities in Bangladesh. Uttara Bank Ltd is one of them. The
bank has been operating its activities for a long time. For the future planning and the
93
successful operation for achieving its prime goal in this current competitive environment, this
report can be a helpful guideline.
The purpose of the study was to measure the Financial performance of Uttara Bank Limited,
compare it with the IBBL HSBC & Sonali Bank identify the shortfalls and recommend
thereby. From various analytical tools it is found that the overall profitability and efficiency
of Uttara Bank Limited are satisfactory over the years. Though in 2009 and June 2010 it
could maintain the profitability, the growth rates are negative. The comparative analysis gave
a mixed result. In some cases, UBL has been performing better than the IBBL HSBC Sonali
Bank but in many cases it is performing worse than them.
Uttara Bank Limited is country’s one of the major oldest and renowned bank. It has been able
to maintain its reputation by its creditworthiness and wide network. It has been contributing
to the national economy with a great deal. There are some areas where some problems and
inconsistencies have been experienced. If it can solve these problems by taking immediate
steps, it will emerge as the most successful bank in the country because it has such strengths
and abilities.
------ THE END -----
94

1.1 Organization Overview: 1,105,226,569 During The Year 2009. and in June 2010 Profit After Tax Is 793,726,000

Uploaded by

Copyright:

Available Formats

1.1 Organization Overview: 1,105,226,569 During The Year 2009. and in June 2010 Profit After Tax Is 793,726,000

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

1.1 Organization Overview: 1,105,226,569 During The Year 2009. and in June 2010 Profit After Tax Is 793,726,000

Uploaded by

Copyright:

Available Formats

1.

Out Line of Uttara Bank Ltd. Bangladesh

c) Issued, Subscribe and Paid Up Capital

Sl. No. 2008 2009 2010

1.2 Vision/ Mission

U Anticipating business solutions required by all our customers everywhere and

Mr.Md.Mahfuzus Subhan Prof.Mirza Mazharul Islam

Mr.Sarwar Boudius Salam Prof.Sharif Md.Shahjahan

Mr.Abu Hossain Siddique Mr.Syed A.N. M.Wahed

Mr.Abdul Barq Alvi Mr.Mustafizur Rahman

Mr.Faruque Alamgir Mr.Shah Habibul Haque

U Chairman Mr. Azharul Islam

U Directors Mr. Shah Habibul Haque

U Managing Director Mr. Shamsuddin Ahmed

Organizational Structure of Uttara Bank Limited.

Deputy Managing Director

Asst. Managing Director

Deputy General Manager

Senior Principal Officer

Senior Officer Grade -1

Organizational Structure of Dur-us-Salam Road, Mirpur Branch:

Principal Officer (Cash)

Officer Grade One

Asst. Officer (General)

Asst. Officer (Cash)

Departments of Uttara Bank Limited

Name of the Division Affiliated Departments

U Dhaka Central Zone U Dhaka North Zone

Total Branches ( Including Corporate Branch & Local Office ) 211

Authorized Dealer Branches 38

Treasury & Dealing Room 1

Man Power 3562

Loan Products Deposit Products

Uttaran Consumers Savings Account

Special Notice Deposits

Small Business Loan Fixed Deposit Account

Building Repair Loan Double Benefit deposit

Monthly Deposit Scheme

Uttaran Consumer-Credit Scheme :

U No collateral security is required.

U Maximum Loan amount Tk.3,00,000/-

U 5% incentive on total interest charged

Personal Loan Scheme for Salaried Officers-

U Emergency educational expenses of the children for admission/purchase of books,

U Any Bangladeshi National residing home or abroad may open savings

U The account holder may nominate his nominee in this account.

U Minimum amount : Taka 1,000.00

U Free Cheque-Book facility

U Opportunity to apply for - safe deposit locker facility

U Collect foreign remittance in both T.C. & Taka draft.

U Transfer of fund from one branch to another by

U Transfer of fund on Standing Instruction Arrangement

U Collection of cheques through Clearing House.

U Issuance of Payment Order / Call Deposit.

Special Notice Deposit:

U 7 days notice required to withdraw.

Equal and Equal and

Annual 3.25% 3.30% 3.40% 3.50% 3.60%