Financial Performance Analysis Of Dhaka Bank Ltd.

[A study on Islampur Branch, Dhaka]

An Internship Report
Submitted to the
Department of BusinessAdministration

In partial fulfillment of the requirements for the award of the

degree of Bachelor of Business Administration

Date of Submission:

Dhaka International University

1
Financial Performance Analysis of Dhaka Bank Ltd.
[A study on Islampur Branch, Dhaka]

Submitted By:
Shamim
Batch: 60B
Roll: 20
Season: 2017/18
Major: Finance
on
Department of Business Administration

Supervised By:
Mrinal Kanti Das
Lecturer

Department of Business Administration

Date of Submission:

2
 Dhaka International University
Letter of Transmittal

Date:

Mrinal Kanti Das

Lecturer
Department of Business Administration

Subject: Submission of Internship Report on “Financial Performance Analysis of Dhaka

Bank Limited”.

Dear Sir

I am Shamim, Reg. no- 107728, a regular student of Dhaka International University, pleased to
submit my report on “Financial Performance Analysis of Dhaka Bank Limited”. I have tried
my best to present all the facts that I have recovered through my project report. I have tried
almost to include all there relevant information and analysis to make the report comprehensive as
well as perfect one, and in doing so I have tried my utmost to live up to your standards. I will be
very much glad to hear from you for further clarification.
May I, Therefore, wish and hope that you would be gracious enough to accept my effort and
oblige there by.

Yours Sincerely,

Shamim
Reg: 107728
Batch: 60B

3
 Acknowledgement

At the very beginning, I would like to express my deepest gratitude to almighty GOD for giving
me strength and aptitude to finish the report within the time.

I feel honored to lay my sincerest gratitude to my honorable supervisor, Mrinal Kanti Das, ,
Lecturer, Dhaka International University, for his help, encouragement, guidance and valuable
suggestions throughout the period of the study, without which it would not have been possible to
submit this report on time.

It was a great opportunity for me to complete my project/internship report at

Dhaka Bank Limited. Etc.

I also very grateful to my branch manager, operation manager and other officers for their
greatsupport.

I am fortunate for the aid and encouragement I have received from all of my teachers and friends
and students of Dhaka International University.

4
 Bona-fide Certificate

This is to certify that the internship report titled ‘‘Financial Performance Analysis of Dhaka
Bank Limited" is the bona-fide work of Shamim, Roll: 20, Reg: 107728 Batch 60B, Major in
Finance who carried out the internship under my supervision. Certified further that to the best of
my knowledge the work report here in doesn’t form the part of any other internship report or
dissertation on the basis of which a degree or award was conferred on an earlier occasion on this
or any other candidate.

I wish him success in every step of Life.

----------------------------------
Mrinal Kanti Das, Lecturer
Department of Business Administration

5
 Declaration of the Student
I, hereby declare that the report of internship titled "Financial Performance Analysis of Dhaka
Bank Limited" is prepared by me after the complete inspection with General Banking Division
of Dhaka Bank Limited, Islampur Branch. I also declare that this paper is my original work and
prepared for academic purpose which is a part of BBA and the paper may not be used inactual
market scenario.

.............................
Shamim
Batch: 60B
Roll:20

6
 Executive Summary
This entry level position report relies upon my passageway temporary job program and spending
frameworks of 2015 to 2019 of Dhaka Bank Limited. In my brief occupation session, I tasked in
General Banking. It was a wonderful occasion to participation and accumulate information on
various types of banking tasks. My educator assisted me with picking the subject "Financial
Performance Analysis of Dhaka Bank Limited".

In the new business time period, the private money related region is getting more genuine in
Bangladesh. Around there the most utilized money related reports are the bookkeeping report
and advantage and setback account where the accounting report shows the financial position and
advantage and deficit account shows the net bit of leeway or outright inadequacy of a bank.
Extent Analysis manages these verifications.

Proportion examination is the most well-known example to judge a bank's introduction over
years or with various associations in an industry. In my report I expected to ponder Financial
Performance Analysis of Dhaka Bank Limited's monetary rundowns all through the past five
years by then expected to separate and give basic comments concerning the changes in the
money related position. Assessment and comprehension of these fiscal reports through extent
investigation has now become a huge strategy for execution assessment because the examiners
account subject matter experts, the board bosses and the speculators reliably rely upon these
extents to make huge decisions. The administrative gathering of any bank, monetary trained
professional and the public position workplaces continually stress over liquidity extents and
adequacy extents of a bank which interprets the viability of a bank.

As a piece of my Bachelor’s Business Administration program, I have encountered 3 months in

Financial Performance Analysis of Dhaka Bank Limited, Islampur Branch & learning the
exercises of general banking. I have investigated the money related reports of Financial
Performance Analysis of Dhaka Bank Limited to discover its degrees by utilizing its former and
modern records. Coming about to setting up this report I came to comprehend that evaluation of
spending rundowns between extent assessments with keeping an essential separation from the
past stumble and settle on the future choices and system. Consequently, it is critical for every
association whether the affiliation's size is to offer financial explanation and to investigate it to a
degree.

7
 Table of Contents
SL. NO PREFATORY PARTS Page
No.
Cover i
Title page ii
letter of transmittal iii
Acknowledgement iv
Bona-fide Certificate v
Declaration of the student vi
Executive Summary vii

8
 CHAPTER 01: INTRODUCTION 11 - 14

1.1 Introduction 12

1.2 Objective of the study 13

1.3 Methodology Sampling techniques 13 - 14

1.4 Limitation of the study 14

CHAPTER 02 : OVERVIEW OF 15 - 27
THE DHAKA BANK
2.1 An overview of Dhaka Bank 16

2.2 Background of Dhaka Bank Limited 16

2.3 Corporate Information 16

2.4 Mission 17

2.5 Vision 17

2.6 Corporate Values of Dhaka Bank Ltd 17

2.7 Organisation Structure 18

2.8 Operational Activities of the Organisations 18 - 21

2.9 Corporate Social Responsibility 21 - 26

2.10 SWOT Analysis of Dhaka Bank Ltd 26 - 27

CHAPTER 03 : THEORETICAL 28 - 30
OVERVIEW
3.1 Concept of financial statement analysis 29

9
3.2 Methods of Financial Statement Analysis 29

3.2.1 Ratio Analysis 30

3.2.2 Trend Analysis 30

CHAPTER : 04 FINANCIAL
PERFORMANCE ANALYSIS

4.1 Ratio Analysis of Dhaka Bank Ltd.

CHAPTER : 05 FINDINGS

5.1 Findings

CHAPTER 06 :
RECOMMENDATION & 47 - 49
CONCLUSION
6.1 Recommendation 48

6.2 Conclusion 48

6.3 Reference 49

10
 Chapter : 01

Introduction

11
1.1 Introduction

For the most part by "Bank" we can beyond question handle that the cash related affiliation
administering cash. The entire situation of the economy of a nation can be learned by inspecting
the state of the financial zone. Banking zone has a fundamental task to do in the monetary
exercises and improvement of any country. There are various types of banks like Central Banks,
Commercial Banks, Savings Banks, Investment Banks, Industrial Banks, and Co-employable
banks, and so on notwithstanding, when we utilize the enunciation "bank" with no prefix or
cutoff, it suggests the Commercial Banks. Business Banks are the key partners of the economy of
a nation like Bangladesh. In Bangladesh, the business banks are regulating the monetary zone
and macroeconomic association all things considered relies on the showcase of the business
banks also as the financial zone. Banking filled basically in the public zone with fundamental
supplement on changing of the monetary construction and progress needs of the war-torn
economy with persevering development in after years. It was constantly felt that banks should be
a permitted in the private area for giving a fillip to advance measure based.

On private activity. In the 80's startlingly various banks in the privatize region were permitted.
Dhaka Bank is one of them. Today the monetary thought isn't continuing inside the branches or
the motel of the branches. The monetary experts are correct currently rehearsing relentless
banking. The attestation of the transparency of the master place is a fundamental factor in bank
association. Thusly, it has gotten fundamental for each individual to have some thought on the
bank and banking technique. As of now, there are 56 booked banks working any place in the
country. Out of these, 9 are state-had (checking 5 unequivocal banks), 38 are privatize issue
banks and the rest 9 are new business banks.

Notwithstanding the way that the money related zone in Bangladesh is experiencing a crazy
change, it truly experiences consistent shortcoming. The most concerning issue of Bangladesh
banking framework is the bank advance default issue. Different activities have been attempted to
manage the credit default issue in Bangladesh. One of them is to have a credit strategy and
frameworks rule coordinated by the Bangladesh Bank.

1.2 Objective of the report

The goal of the report can be seen in two structures:

12
• General Objective

• Specific Objective

General Objective
This entry level position report is organized essentially to achieve the Bachelor of Business
Administration (B.B.A) degree essential under the Department of Bachelor Administration,
Dhaka International University.

Specific Objective
Even more expressly, this assessment includes the going with points:

 To give a short survey of Dhaka Bank Ltd.

 To assess the monetary presentation of Dhaka Bank Limited over the most recent five
years.

 To present my discernment and suggestion to the bank.

 To perceive the strength and inadequacy of the bank rely upon the monetary situation
over the latest five years. (2015-2019).

1.3 Methodology
To create this report just auxiliary information has been utilized. The source that have been used
to amass and accumulate data is referenced underneath:-

Secondary Sources

■ Annual Report of Dhaka Bank Limited from 2015-2019.

■ Previously published records of Dhaka Bank Limited.
■ Diverse composed documents of Dhaka Bank Limited.
■ Newspaper
■ Web site

Sampling Techniques

13
This report represents the sample techniques but on this report sample techniques are for
financial performance analysis for different years. Ratio analysis, performance evaluation is the
main focus of the sample technique.

Sample Size
Sample size can be suggested for distinct annual performances. In this report I am using the
annual record of Dhaka Bank Limited (2015-2019). These annual reports are utilized for the
overall performance evaluation of Dhaka bank Ltd.

Ratio Analysis
Proportion investigation is a quantitative strategy of acquiring discernment directly into an
association's liquidity, operational effectiveness, and benefit by perusing its fiscal summaries
which incorporates the solidness sheet and income proclamation. Proportion examination is a
foundation of fundamental decency assessment.

1.4 Limitation of the report

It was an uncommon possibility for me to work in Dhaka Bank Limited as an Intern and to make
a report on its monetary display yet there were certainly a couple of imperatives while creating
this report. These given below:-

 Receiving the data and deciphering it, based on my arrangement and

afterward actualizing it.

 Bankers are exceptionally engaged individuals. I attempted to reach

some high authorities for more itemized data and counsel yet they
couldn't oversee time for me.
 Difficulty is insufficient of time. I had to acquire all the records in
this insufficient time and decided on vital records to finish the file.
 Unfinished & obscure files are also a drawback.
 Unavailability of good enough written records as considered
necessary completing an extensive take a look at.
 Unavailability of data
 Privacy of records.

14
 Chapter-02

Organizational Background

2.1 An Overview of Dhaka Bank Limited (DBL)

Dhaka Bank Limited is the fundamental private territory bank in Bangladesh offering full extent
of Personal, Corporate, International Trade, Foreign Exchange, Lease Finance and Capital

15
Market Services. Dhaka Bank Limited is the supported choice in banking for all around arranged
and tweaked organizations, cutting edge development, uniquely crafted answers for business
needs, overall reach in return and exchange and exceptional yield on endeavors, ensuring
Excellence in Banking Services.

2.2 Background of Dhaka Bank Limited

Dhaka Bank Limited is a booked bank that was melded under the Companies Act 1994, started
its method in July 1995 with a target to accept the irreplaceable part in the monetary progression
of the country. Focusing on contribution business banking organization to the customers' passage
around the country. This affiliation gaining customers' conviction following its establishment.
Inside this time the bank has been viable in arranging itself as a reformist and dynamic money
related establishment in the country. This is as of now by and large acclaimed by the business
organization, from little money manager to gigantic transporter and totals, including five star
corporate and new theorists, for present day and contemporary contemplations and commercial
game plan.

2.3 Corporate Information

Name of the Bank: Dhaka Bank Limited
Status: Private Limited Company
Date of Founded: July 5, 1995
Headquarters: Dhaka
Registered Office: Biman Bhaban (1st Floor), 100 Motijheel C/A, Dhaka-1000, Bangladesh

Swift Code: DHBLBDDH

E-mail: info@dhakabank.com.bd

Web Page: www.dhakabankltd.com

Subsidiaries: Dhaka Bank Securities Limited

2.4 Mission
To be the head money related foundation in the country giving first rate things and organizations
supported by latest advancement and a gathering of significantly lively workforce to pass on
Excellence in Banking.

16
2.5 Vision
At Dhaka Bank Limited we draw our motivation from the closed off stars. Our social event
makes arrangements to guarantee a standard that makes each money related exchange a
pleasurable encounter. Our undertaking is to offer you the incredibly sharp radiate through
exactness, endurance, accommodating vehicle, and bleeding edge progression, custom fitted
reactions for business needs, by and large reach consequently and trade and outstanding yield on
your undertakings. Our family, things and cycles are changed as per satisfying the requirements
of our sharp client. We will apparently accomplish an ability like the illuminators in the skies.
Our incredible goal is to pass on a quality that shows a genuine impression of our vision
Excellence in Banking.

2.6 Corporate values of Dhaka Bank:

❏ Consumer focus
❏ Wholeness
❏ Exorcism
❏ Teamwork
❏ Respect for the Individual
❏ Responsible Citizenship

2.7 Organizational Structure:

17
2.8 Operational Activities of the Organization:

Product of the Bank:

● Opening Account
● FDR (Fixed Deposit Receipts)
● DPS (Deposit Pension Scheme)
● Cheque Book
● Debit Card
● Credit Card
● Internet Banking
● Remittance
● Pay order form
● Bank statement
● Information to the customer.
Opening Account:
The way to open an account in Dhaka financial institution in the beginning is a financial savings
a/c or cutting-edge a/c or other specific form of a/c in Dhaka bank has a/c within the bank and

18
introducer for a/c holder. Introducer is an account in Dhaka bank in any department. Introducer
file should be the right manner to the bank due to the fact introducer is the grantor for a new a/c
holder. Introducer reports are right manner inside the shape. Introducer Name, address, cell
range, a/c name and a/c range are well clean ways to state the shape. Secondly a/c holder
national identity card photocopy and original card take in the bank due to the fact some of time
country wide identity card are now not nicely picture and records aren't clear so need to be take
inside the bank and nominee country wide identification card photocopy need to be take the
financial institution and nominee one replica passport image and a/c holder copy image inside
the bank. Banker are right way top off the form and document the a/c holder details inputted the
bank server. Server has a/c wide variety for depositing the money against the a/c. In the end a/c
holder different offerings in bank cheque e-book, debit card and other centers inside the bank a/c
holder told the banker and they can properly way the outlet the account.

FDR (Fixed Deposit Receipts) & DPS (Deposited Pension Scheme):

FDR & DPS are another sort of merchandise of Dhaka Bank Limited. FDR are in particular
deposited for massive amounts of cash for constant sure time and in this product are beneficial
for depositors due to the fact they may be in this deposit are a few earnings to adulthood of time
clients are major of cash and add the profit in the certain time period. And any other product of
Dhaka bank is DPS. DPS are monthly foundations are deposited the cash. Depositor is some of
the deposits are whole properly and they are able to effortlessly maturity of date earnings and are
important to get hold of in the financial institution.

Cheque Book:
Cheque book is every other offering in Dhaka Bank Limited. An e-book is needed for each
purchaser due to the fact consumers withdraw their cash and take some other customer, bank,
customer and personal trouble to apply the cheque. Dhaka bank cheque books are kind. One
cheque book web page has twenty first-rate leaf and hundred leaf. Twenty 5 leaf take a look at
book cost are twenty hundred 75 taka and hundred leaf take a look at e book are one thousand
100 taka. Requests to take a look at e-book are delivered for running days 3 to 5 days.

Debit & Credit Card:

Debit & credit card is one other kind of service in Dhaka Bank. It is necessary for every
customer. This card is made of plastic and highly security chips are noted on this card. These
cards are different ways to purposely use the customer. Platinum, Gold, silver and different
cards give the customer their different needs and wants. These cards are prepared by ten to
fifteen days later when customers receive the bank.

19
Internet Banking:

Dhaka Bank other services in banking and internet banking are important for the customer and
banking sector. This banking is helpful for customers and bankers because they can easily
access it at any time any place. Account holders properly use their transaction of cash and
withdraw in any sort of activity in the bank to alert for information properly. Every bank uses
the internet banking for customer and banking information for different activities.

Remittance:
Remittance is another kind of service in Dhaka Bank. Because it is an important issue for outside
money, the money sent for Bangladeshi people for send to foreign people is cash in through like
western Union, cash express, Ria and other different sources of remittance money. Customers
withdraw the money in the process for cash the money. Procedure for needing a national id card
photocopy and pin number given and fill up the form properly and receiving the money.

Pay Order:
Managing huge amounts of money is hard for some organizations or clients some of the time,
individuals use pay requests as an alternate choice. For a pay request client needs to dispatch a
compensation request structure where he is giving the compensation request and the fundamental
sum is composed. As indicated by that the compensation request is set up properly.

Bank Statement:
Giving ledger explanation is another normal help of any banking branch. Bank has a record to
request a financial balance explanation where the bank can earliest starting point to end of that
record all cash transactions are given. Banks are statements for individuals for personal and
business in their income tax related issue when it is important for customers.

Information to the Customer:

Information to the customer is one kind of service in Dhaka Bank. Because it is an important
role in the banking sector for every bank. It is related to customer different needs and wants are
properly related in satisfaction for banking services for different issues. Customers are judging
the banking sector for significant data about the bank. As a result, they try to best serve their
customers. Dhaka Bank are 24/ 7 services in the banking sector and hot numbers for any help
for the customer in banking related help are 16474. This information is helpful for customers.
Customers can easily share their different issues and properly solve problems. They are getting
their services firstly and short timely properly. Another way to inform the customer for
transaction and card related and different serious issues to solve for the information to the
customer.

20
2.9 Corporate social Responsibility

DBL recalls itself for cause, social government help and other unselfish exercises towards the
progress of the goal of its establishment which would go presumably as an upgrade in gaining
care on ground issues and as a facilitator for building ranges with the shared objective of
monetary improvement of the general populace, giving direct help to different improvement
activities and individuals. Dhaka Bank Ltd. has plot a five-segment CSR board headed by the
Managing Director to control the general exercises and the main gathering of the CSR asset of
the bank. Dhaka Bank Foundation, set up in 2002 as a non-beneficial, non-managerial
connection, is exclusively dedicated to the clarification behind a good reason, social government
help and other charitable exercises towards the progress of the target of the establishment. Dhaka
Bank has taken the choice to give 2% of the pre-charge advantage every year as its CSR works
out

❏ Health

● Donation of explorer lifts and two hemodialysis machines to BIRDEM Hospital and Tk.
1.2 million every year from 2006 for supporting working costs.
● Donation of Tk. 10 million to Center for Women and Child Health Hospital for setting up
a fanatical lab.
● Setting up of a 10-bed ward at the proposed Ahsania Mission Cancer and General
Hospital, supporting Society for the Welfare of Autistic Children (SWAC).
● Donating to Bangladesh Eye Hospital, Sponsorship for Shield Trust.

Disaster alleviation
 Among Dhaka Bank's responsibility as corporate social commitment, a few exercises are
given to Asiatic Society of Dhaka.
 Alleviation action for flood losses to a detriment of Tk. 5.0 million.
 The bank coursed 10 kg rice, 1 kg heartbeat, and 1 kg salt to all of the 10,000 disturbed
gatherings of Araihazar, Sirajdikhan and Belkuchi.

Social government assistance

 Redesign of the amphitheater of Dhaka Reporters Unity.
 Supporting of Anti-Drug Debate Festival, Distribution of winter textures by the delegates
of the bank.

21
  Supporting of Bangladesh Under-19 cricket group.
 Mindfulness creation for Road Safety, Blood Donation, Eye Donation, Prevention of
AIDS.
 Given money related assistance to Educational Development Trust of Scholastica to help
and support academically talented understudies.

 Sponsorship for BADC School.

Environment

 Supported the city beautification program started by Dhaka City Corporation by redoing.

 Dhaka Bank Fountain before the Ministry of Foreign Affairs and Dhaka Bank Park.

 Dhaka Bank Head Office, beautification at Jashimuddin Crossing at Uttara costing 1.5 m,
furthermore before Dhaka Bank Head Office costing 1.2 m.

Department of the Dhaka Bank:

● Human Resources Department
● Credit Department
● Central Accounts Department
● Operation Department
● Investment Department
● Information Technology Department
● Dhaka bank Training Institution
● Personal Banking Department

Human Resources Department:

Dhaka Bank Limited are well trained employees for their organization. HR departments circulate
the different position wise responsibilities and qualifications are given below the circular and
they are providing examinations for candidates and selected candidates call for viva. Viva are
different ways for educational, personal attitude and dedication for work and candidates wants
and feedback for organization and different tests are given for proper candidates suitable for
position in different departments wise their work duties and responsibilities are proper way to
employees. Dhaka Bank are significant way to hire the employees.

22
Credit Department:
The Credit Department is the most important department in every bank because in this
department are the main part of the financial division in the bank. Credit Departments are
different in loan processing and how to recover loans for the customer. Because this department
is different from loan related and LC related work in this department. This department is hazed
working for different work in this division. This department mainly works for different customer
loan, car loan, staff loan, house loan, land mortgage and different financial lease and LC related
different issues are handled for this department.

Central Accounts Department:

Dhaka Bank Limited has a central department to record all branches keeping safe and proper
way of observation for particular branches. This department are proper way to maintain their
work properly and a different strategy to handle the department properly.

Operation Department:

For the achievement of any branch a completely working tasks office is totally significant. This
office is dependable to guarantee that every one of the works are finished. This division is
answerable for making arrangements, setting rules, creating execution measures and observing
norms and planning reward approaches. This office is the spirit of the establishment and adds to
the accomplishment of the association.

Investment Department:

Investment departments are mainly related to how customers are invested in Dhaka Bank share
market. In this department are works for different analysis of market survey and market
position in financial condition for banking for local and global region. Investment Department
analysis is a different analysis for financial portfolio, market share needs and wants and
different particular units are development of the bank.

Information Technology Department:

Information & Communication Technology is at the point of convergence of Dhaka Bank's

operational techniques. The innovative piece of room is installed in everything and associations.
Dhaka Bank has made its methods and development channels on the world class place financial

23
framework which gives dependable and skilled associations to the entirety of our clients. At
Dhaka Bank, consistent improvement and updating of construction and frameworks is reflected
to its most prominent bit of leeway in ICT. The entirety of the branches are correct currently
associated with online associations and Dhaka bank works on one bank however. Dhaka Bank
Limited is building up its ATM eases back down and has a wide program to extend its systems in
2010. To guarantee that everything is going adequately Dhaka Bank Limited has a substitute data
and headway office which contains fundamentally competent specialists who in a short second
arrangement with IT issues.

Dhaka Bank Training Institute:

HR improvement through arranging is the most key part for genuine progression since it moves
information, limit and expert strength. The reasonable essential for skilled movement of workers
is inconceivably gigantic for the accomplishment of any connection and because of that the
Dhaka Bank Training Institute was framed. Dhaka Bank Training Institute is decided to build up
the HR through facilitated confined preparing projects. To accomplish fit importance in Banking,
Dhaka Bank Training Institute conducts different courses, workshops, official progress programs
essentially for financiers.

Personal Banking Department:

The Personal financial segment of Dhaka Bank Limited is otherwise called the usual financial
segment. This segment is principally answerable for giving general administrations to customer
for example opening and shutting records, store and withdrawal reserves, giving compensation
requests and blessing checks and so forth. The primary duty of this division is to create plans to
draw in customers. Because of the constant execution of this office, Dhaka Bank is consistently
thinking of new items to fulfill its customers.

Business Units of Dhaka Bank:

There are some businesses units are given below-
● Corporate Banking
● Personal Banking
● Information Technology

Corporate Banking:

24
Dhaka Banks are some business unit is one of them are corporate banking. Corporate Banking
are one kind of credit departmental working in the organization because in this banking are most
hazed and customer oriented. In this banking activities are work for safe and safety places for
banking. Some are corporate banking are Letter of Credit, Guarantee, Leasing, Working Capital
Finance, Import and Export Finance, Syndicated Loan etc.

Personal Banking:
Personal banking is one kind of business unit in Dhaka Bank ltd. Because is not an other banking
in the organization. Personal banking is related personal business related or partnership related
banking activities in the organization. Customer different types of banking in the business the
organization. Because people are different financial banking in the organization. Dhaka Bank is
most popular bank which is properly presented the personal banking. Dhaka bank different kind
of incentive activities for banking division. Especially for new personal banking holder different
facilities are given for the encouraging.
Information Technology:
Information Technology are most important issue for every business unit and the Dhaka bank are
especially good relationship with customer. Because it is important for every organization.
Dhaka Bank creating a good relationship for every customer. So, they can strong their
information technology proper ways for different incentive plan and activities for the customer.

2.10 SWOT Analysis of Dhaka Bank:

SWOT investigation is refined for an association, to discover its customary Strengths,
Weaknesses, Threats and openings prompting measuring the forceful ability of the association.
The SWOT examination allows an endeavor to perceive its commercial center standing and
embrace methods subsequently. Here SWOT investigation of Dhaka Bank Limited is made to
perceive the area of the bank higher.

25
Strengths
● Healthy commercial identification
● skilled worker bonding and assets
● Effective performance
● young enthusiastic group of workers
● Empowered work pressure
● Hospitable operating surroundings
● strong economic role
Weakness
● High charges of L /C.
● Avoiding small entrepreneurs.
● Poor marketing activities.
● Lack of diversification to expand the business.
● Lack of proper incentives.
● High cost of maintaining accounts.

Opportunities
● Different operating procedures.
● Broader network across the country.
● Expert Managers.
● Huge population.

26
Threats

● Forthcoming bank and branches.

● Comparable products are offered by various banks.
● Default Loans.
● Mechanical Downturn.
● Monetary emergency.

CHAPTER: 3

27
 THEORETICAL REVIEW

One of the financial institutions is bank. The bank collect money as deposit from customers and
the provide loans to customers. So the bank acts as a financial intermediary between a depositor
and borrower. Deposits are liabilities to the bank because after a period of time a fixed amount of
money will be paid to the customer. Financial performance analysis is very important because it
is the capacity of an organization to adequately utilize the assets of its basic mode to generate
income. Two different ways to measure the financial performance, the initial way is trend
analysis that includes horizontal and vertical analysis, and the second one is highly well known
analysis for any financial institutions that ratio analysis.

3.1 Concept of Financial Statement Analysis

It is a process to analyze an organizations financial statement to settle on the better financial
choices so that in future income can be earned. This statement is very much important for any
financial institutions because this financial statement is a record for monetary data on each part
of business activities. Every company creates and follows three main financial statements that
are: Balance sheet, Income statement, and Cash flow statement.

3.2 Methods of Financial Statement Analysis

28
Different methods or strategies to analyses financial performance analysis of a financial
institution that strategies are given below:

Above where mentioned the strategies to measure the financial performance of an organization.
It depends on originations which methods or strategies are suitable or flexible way for the
organization. In this report we analyze the CBL from the year 2015 to 2019 by using both trend
and ratio analysis. Both the method is popular and widely accepted financial analysis these days.

3.2.1 Ratio Analysis

Ratio analysis is an important tool to quickly analyze the financial statement of a company. Ratio
analyses demonstrate to the investors or shareholders and analysts how a particular organization
is performing over time and can be utilized to assess likely future performance. This ratio also
helps to the shareholders for making a decision because it gives an idea of an organization
overall financial health. To analyze on the correlation between the figures in the financial
statements is the focal point of the report.
It helps the management to analysis the ratio to analyze the previous performance of the
organization and to create plans according to that. For comparing different organizations strength
and weakness analysts used these financial ratios. For calculating financial ratios values are
taken from Balance sheet, Income statement and Cash flow statement. Financial ratio includes
Liquidity ratio, Leverage ratio, Profitability ratio, Efficiency ratio and so on.

3.2.2 Trend Analysis

Trend analysis is one kind of strategy which helps shareholders to predict future stock price
improvements from recent trend data. It provides clear image and idea what has occurred in the
previous and also provides a certain idea what will occur in the future.

There are two important types of trend analysis:

Horizontal Analysis: Horizontal analysis compares financial information over time mostly from
years or past quarters. Horizontal analysis is performed by comparing financial data from a past

29
statement, such as the income statement. When comparing the past data one needs to look for
variations such as higher or lower earnings.
Vertical Analysis: Vertical analysis is a percentage analysis of financial statements. Each line
item i.e. listed in the financial statement is listed as the percentage of another line item. The
vertical analysis of an income statement results in any income statement amount that is
recalculated as a percentage of net sales.

3.3 Financial performance analysis formulas

Through a financial performance analysis, specific financial formulas and ratios are calculated,
which, when compared to historical and industry metrics, provide insight into a company’s
financial condition and performance.

1. Gross Profit Margin Formula

The gross profit margin is a ratio that measures the remaining amount of revenue that is left after
deducting the cost of sales.

2. Working Capital Formula

The working capital measurement is used to determine an organization’s liquid net assets
available to fund day-to-day operations.

30
3. Current Ratio Formula
The current ratio is a liquidity ratio that helps a business determine if it owns enough current
assets to cover or pay for its current liabilities.

4. Inventory Turnover Ratio Formula

The inventory turnover ratio is an efficiency ratio that is used to measure the number of times a
company sells its average inventory in a fiscal year.

5. Leverage Formula
Leverage is an equity multiplier that is calculated by a business to illustrate how much debt is
actually being used to buy assets.

6. Return on Assets Formula

Return on assets, as the name suggests, helps an organization determine how well its assets are
being employed to become more profitable.

If the assets are not being used effectively, the company’s return on assets sum will be low.

7. Return on Equity Formula

Similar to return on assets, the return on equity is a profitability ratio that is used to analyze the
equity effectiveness, which, in turn, earns profits for investors.

31
32
 Chapter : 04

Financial Performance
Analysis of Dhaka Bank

3.1Ratio analysis

3.1.1 Liquidity Ratio

➢ Current Ratio:

The current measures a firm’s capability to pay its obligations in the specific

period. It determines where an organization has adequate short-terms assets to

pay off its short-term liabilities.

Formula: Current Ratio= Current Asset / Current Liabilities

Years 2017 2018 2019 2020

Current Asset (Taka in 154,766.58 172,239.32 197,974.88 225,166.79
millions)
Current Liabilities (Taka in 144,002.03 161,573.80 183,945.87 211,207.61
million)
Current Ratio 1.07:1 1.07:1 1.08:1 1.07:1

33
Analysis: The current ratio satisfactory standard is 1:1. So above 1 current ratio
ismorefavourablesignforthecompany.AswecanseeDBLshowsabove1ineveryyear.

QuickRatioorAcid TestRatio:
Quick ratio also called acid test or liquidity ratio. The Quick ratio is a ratiohow well a
company can pay its short term liabilities. The quick ratio isdesignedto show how
CurrentRatio
quickly acompany can payitsdebts.
2017201820192020
Formula:QuickRatio=(Cash&Equivalents+MarketableSecurities+AccountsReceivabl
e)/Current Liabilities 25 25
% %

Year 2017 2018 2019 2020

25 25
QuickAsset(Taka 154,766.58 172,239.32 197,974.88 225,166.79
% %
inmillions)
144,002.03 161,573.80 183,945.87 211,207.61
Current
Liabilities (Taka
inmillions)
QuickRatio 1.07:1 1.07:1 1.08:1 1.07:1

34
 QuickRatio

2020 2017
25% 25%

2019 2018
25% 25%

35
Analysis:Quickratiostandardis1:1.Ratio1isindicateswherecurrentassetsequal to its current
liabilities. Ratio below 1 is indicates where a firm can’t coverproperly. On the other
hands,above 1 isgood for every company because theyhave ability to pay off its liabilities.
As we can see DBL quick ratio has above 1whichgood forthem.

Net working capital

TheWorkingCapitalisalsoknownastheNetWorkingCapital.TheWorkingCapitalratiome
asurethecompany’sliquidity,whereanorganizations capability to pay its obligations.
The working capital ratio isessential for transmitters because its presents the
company’s liquidity. Thisratio shows the relative potential of an entity’s current asset
to its currentliabilitieswith the abilitytopay for its current liabilities.

Formula:NetWorkingCapital=CurrentAssets -CurrentLiabilities

Year 2017 2018 2019 2020

Current Asset (Taka in 154,766.5 172,239. 197,974. 225,166.

8 32 88 79
millions)CurrentLiabilities(Takain 144,002.0 161,573. 183,945. 211,207.
3 80 87 61
millions)

Net Working Capital (Taka 10,764.55 10,665.5 14,029.0 13,959.1

inmillions) 2 1 8

NetWorkingC
apital 14029
13959
10764 .01
10665 .18
.55
.52

Analysis:Aworkingcapitalratioof1indicatesthecurrentassetsequalcurrent
20
17 20
18 20
19 20
20 36
liabilities. It’s not risky but not very safe. Below 1 is considered risky by
creditorsandinvestorsbecauseitcan’tcovercurrentdebtproperlyandabove1indicatesthat the
current assets over than current liabilities. As we can see DBL workingcapitalis morethan

CashRatio:
The cash ratio is the ratio which measures a company’s capability to pay offits
current liabilities with the cash. The cash ratio also called cash coverageratio or
liquidity ratio. The cash ratio is a conservative measure of a
firm’sliquidity.Thisisextremeliquidityratiobecauseonlycashandcashequivalentsarecom
paredwith current liabilities.

Year 2017 2018 2019 2020

CashEquivalents+Mar 145,399.20 163,800.87 184,931.96 202,108.32

ketableSecurities(Takai
n millions)
CurrentLiabilities (Takain 144,002.03 161,573.80 183,945.87 211,207.61
millions)
CashRatio 1.01 1.01 1.01 0.96

CashRatio
2017201820192020

24 26
% %

Analysis:The cash ratio shows how well

25 any resources25can pay for its currentliabilities
% % is 1:1. So thiscompany’s cash
only with cash and cash equivalents. Cash ratio standard

37
ratio presents above 1 than standard. It means that DBL can bepaidwith theircash
overtheircurrent liabilities.

Profitability Ratio
Earnings Per Share (EPS)
Earnings per Share (EPS) ratio is market prospect ratio which measures
theamountofnetincomehavebeenearnedbyeachcommonstockshare.Generally it’s also
called profitability ratio.It is a popular measure of thecompany’soverall profitsandis
generally statedincurrency.

Year 2017 2018 2019 2020

EPS(Tk.) 3.24 2.30 2.03 2.07

EP
S
202
201
0
7
21
34
%
%
201 are a popular measure of overall profitability of thecompany
Analysis:Earnings per Share
9
and are usually expresses21in dollars. The EPS201
illustrates unstable results above these
% 8
years.In this four years,the valuebof ratio fluctuated
24 from 2.03 to 3.24. In these four years,
%
the best performance of the year 2020 and the year 2019 shows the worst performance.
The main reason for the fall of this ration in 2019 isthatthe total incomedecreases.
Return on Asset(ROA)
The Return on Assets is profitability ratio which measures the profit of thecompany
produces likea percentage of the amount of its assets. It’s alsocalled Return on
Investment. In the sense, the Return on Assets or ROA canbe measures by a resource
for generating profits during a specific period oftime. ROA is generally defined

38
where the net income divide to its total assets.ROAratio is usually presented as
percentages.

Year 2017 2018 2019 2020

NetIncome(Takain 2,028.99 1,437.58 1,465.92 1,495.37
millions)
158,747 176,362 202,19 229,452
.5 .4 1. .8
TotalAssets(Takain 4 7 59 5
millions)
ROA 1.28% 0.82% 0.73% 0.65%

ROA
2017201820192020

19%

37%

21%
Analysis:The ROA illustrates unstable results above those years. In this fouryears, the value of
ratio fluctuated from 0.65% to 1.28%. In these four years, thebest performance of the year 2020
and the year 2020 shows the worst performance.The
23% main reason for the fall of this ratio in the
year 2020 is that the total incomedecreases

Return on Equity:
The Return on Equity Ratio or ROE is a profitability ratio which is essentially
measure of financial performance considered by dividing the company’s net income
with its share holders equity.Since share holders equity is less than theresources of an

39
organization, ROE can be considered as returning to net assets.It signifies how good
there turn from equity to produce returns from its share holders is.

Year 2017 2018 2019 2020

NetIncome(Takainmillions) 2,028.9 1,437.58 1,465.9 1,495.
9 2 37
Stockholders’Equity(Takain 12,745.5 13,388.6 14,445. 15,245.
millions) 1 7 72 24
ROE 15.92% 10.74 10.15% 9.81%
%

Analysis: The ROE display unstable resultsROE

above these years. In this four yearsperiod, the
2017
value of ratio fluctuated from 9.81% 2018 In2019
to 15.92%. 2020
these four years, thebestperformanceof
theyear 2017and theyear 2020shows theworst performance.

3.3.3 Solvency Ratio 21%

DebtRatio: 34%

TheDebtRatioisasolvencyratiowhichcomparesacompany’stotalliabilities to its total

assets
22% like a percentage. It measures thecompany’sfinancial leverage. In other words,
this ratio expresses how a company sellstheirassets by pay off to its liabilities.
23%
Formula:DebtRatio=TotalLiabilities/TotalAssets

40
 Year 2017 2018 2019 2020
TotalLiabilities(Takain 146,002.02 162,973.80 187,745.87 214,207.60
millions)
158,747.54 176,362.47 202,191.59 229,452.85
TotalAsset(Taka inmillions)
DebtRatio 0.92 0.92 0.93 0.93

Analysis: The Debt ratio is a ration of the financial risk of a business, its risk is that
itcannot be enough to pay its debt to the total assets of the business and its
interests.Sincethebusinesscannotbeharmfulduetostoppaymentofdebtandinterestpayments,
0.93

the proportion
0.928 of debt is an important indicator of the long term financialstabilityof
abusiness.
0.926

0.924
DebttoEquityRatio:
The Debt
0.922 to Equity Ratio is also a financial, liquidity ratio that calculates
thecompany’s
0.92
total debt and liabilities by its shareholders equity. It’s also
calledthedebtequityratioorriskratio.Thisratiohighpointshowcapitalstructureofan
0.918
organization is headingtowards debt or equity funding.
0.916

0.914 Formula:TotalLiabilities/TotalShareholders’Equity
2017 2018 2019 2020

41
 Year 2017 2018 2019 2020

TotalLiabilities(Takainmillions 146,002.02 162,973.80 187,745.87 214,207.60

)
12,745.51 13,388.67 14,445.72 15,245.24
Total Shareholders’ Equity
(Taka inmillions)
DebttoEquityRatio 11.46 12.17 13.00 14.05

Analysis: The lower prices of debt-to-equity ratio are less appropriate to indicate.High
debt-to-equity ratios of non-responsive because it means that the creditordepends on the
DebttoEquityRatio
business, so it is high risk especially high interest rates. The debt toequity ratio indicates
unstable results over the years. In this four years period,the value of ratio fluctuated from
11.46 to14.05. In these four years,the best performance
13
of the year 202014.05
and the year 2020
12.17
shows the worstperformance.
11.46

2017 2018 2019 2020

42
43
Chapter-05

Findings

44
5.1 Findings

 The Current Ratio(1.08:1)in 2019 was more than 2017,2018 and 2020
 The Quick Ratio (1.08:1) in 2019 was higher than 2017, 2018 and 2020
 The Net Working Capital Tk.14,029.01million in 2019 was higher than
2017,2018 and 2020
 The Cash Rationwas (1.01:1) in 2017, 2018 and 2019 but its decrease to (0:96:1)
in 2020
 The Earnings per Share Tk. 3.24 millionin 2017 was more than 2018,2019 and 2020
 The Returnon Asset Ratio (1.28%) in 2017 was higher than 2018, 2019 and 2020
 The Return on Equity Ratio (15.92%) in 2017 was more than 2018, 2019 and 2020
 The Debt Ratio was(0.92) in 2017 and 2018 but its increase to(0.93) in 2020

45
 Chapter-06
Recommendation Conclusion

46
 6.1 Recommendations
 Dhaka Bank Ltd should increase their current asset and reduce current liabilities
tomanagetheirbusiness
 DhakaBankLtdwouldtakeessentialfootstepstoproliferationtheirNetIncome
 In 2017 DBL Return on Asset Ratio was great. But in 2020 was the bad
performance.Sothis organization would give extraemphasizeon Return on Asset
 In this four year analysis, shows the best performance of the year 2019 and shows
theworst performance of 2018. The main reason for this ratio of 2019 is due to
NetIncomereduction
 DBLshouldreducelongterm liability.
 DBLshouldimproveadvertisingpolicy.
 DBL should upturn Bank Branches and ATM Booths for provide better services
totheircustomers

6.2 Conclusion

Current Commercial Banking is demanding business. What's more, Commercial banks are
fantastic monetary foundations, essential to the overall government assistance of the economy
extra than another monetary organization. Dhaka Bank Limited is one of the primary business
banks in our country. In all financial conditions Dhaka Bank Limited has been working with top
notch certainty and battling especially with Government orientated banks, neighborhood
business banks identified with the worldwide banks besides. Dhaka Bank Limited consistently
endeavored its stage high-caliber to do monetarily pleasantly. Regardless of hoping to do
pleasantly in certain components Dhaka Bank Limited went up against a couple of money related
issues occasionally. A portion of the inconveniences had been-extreme terrible credits, shortage
of advances constantly, shortage of money in palms as a result of vault limitation, etc. These
inconveniences stimulate time to time as a result of monetary stoppage, premium charge
vacillation, rising capital commercial center, expansion in the money market, etc. Battling with
these sorts of issues and rivaling various banks each second the monetary foundation is making
an endeavor to do higher to pleasant. In the event that this issue keeps, we are trusting that Dhaka
Bank Limited will widen even extra inside what's to come.

6.3 References

Annual Report:
● Annual Report of Dhaka Bank (2017-2018)
● Annual Report of Dhaka Bank (2018-2019)

47
 ● Annual Report of Dhaka Bank (2019-2020)
● Annual Report of Dhaka Bank (2020-2021)

Books:

● Stanley, B. b., & Geoffrey, A. H. (2008 - 2009). Foundation of Financial

Management. International: McGraw-Hill
● Brigham, E. F., & Gapenski, L. C. (1995). Intermediate Financial Management (Fifth
Ed.). International: The Dryden Press

Websites:

● https://www.bb.org.bd/fnansys/bankfi.php
● https://dhakabankltd.com/
● https://www.investopedia.com/
● http://www.activemedia-guide.com/busedu_banking.htm
● https://investinganswers.com/

48