Financial Performance Analysis

on
Dhaka Bank Limited
Submitted by
WWW.ASSIGN!N"P#IN".$#
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Part ' (

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Introduction)
Bangladesh has gone through different Banking system. Banking system of
Bangladesh has moved out three phases of development - Nationalization, Privatization,
and lastly Financial ector !eform. "n Bangladesh, no#-a-days more than $% commercial
& specialized 'anks are conducting their operations, 'ut they differ from one another in
many #ays regarding their services.
(ith due consent of our course teacher, #e have selected our area of interest in
this particular aspect and set our topic as *Financial Performance Analysis on Dhaka
Bank Limited+. "n Bangladesh there are different 'anks #orks for developing not only
the customer)s satisfaction 'ut also the countries economic development.

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,.-. #b.ecti/es of the 0e1ort)
+he program, designed to provide the BB, students #ith an opportunities to
o'tain on the -o' training, aims at 'ringing together the t#o facts of learning the
theoretical and practical. +he o'-ectives of the study #hich are stated 'elo#.
+o 'e introduced #ith the 'ank
+o kno# a'out the performance of the 'ank
+o increase our efficiency
+o ac/uire 'oth theoretical and practical kno#ledge.
,.2. Sources of Information)
+he report #as fully investigative in nature. 0ata have 'een collected from 'oth
primary and secondary sources.
Data $ollection
+his study is mainly 'ased on secondary data availa'le from the various divisions
and departments of 0haka Bank 1Banani Br.2 in addition to these other necessary
information have 'een collected from the daily ne#s papers, relevant -ournals, annual
reports of 0haka Bank, Bangladesh Bank, 3inistry of Finance and Planning and
pu'lications of other relevant institutions have also 'een taken into consideration.
,.2.,. Primary Sources)
Face to face conversation #ith the 'ank officers & staffs.
4onversation #ith the clients.
,.2.3. Secondary Sources)
Procedure manual pu'lished 'y the 0haka Bank 5td.
Files and documents of the 'ranch.
,nnual report of 0haka Bank 5imited, 2%%6 - 2%1%.
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0ifferent8 manuals of 0haka Bank 5imited.
0ifferent circulars of 0haka Bank 5imited
,.4. Limitation of the Study)
+he report #as completed under the follo#ing limitations.
+he main constraint of the study is insufficiency of information, #hich #as
re/uired for the study. +here are various information the 'ank employee can8t
provide due to security and other corporate o'ligations.
0ue to time limitations many of the aspects could not 'e discussed in the
present report.
ince the 'ank personals #ere very 'usy, they could provide me very little
time.
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Part ' ((
#r&ani5ation)

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3.,. Back&round and 0ational of the Study)
0haka Bank 5td is one of the third generation 'anks in Bangladesh and has a strong
position in the current competitive market. 0haka Bank is trying to develop its reputation
among its client 'y offering e:cellent services through ;eneral Banking, 4redit 0ivision
and specially Foreign <:change 0ivision. +hey also introduced online 'anking service.
0haka Bank 5imited 10B52 is the leading Private ector Bank in Bangladesh. "t is a
cheduled Bank, #hich #as incorporated as a pu'lic limited company on ,pril %9, 166$
under the 4ompanies ,ct, 1667. (ithin this short time the 'ank has 'een successful in
positioning itself as progressive and dynamic financial institution in the country. +he
Bank is no# #idely acclaimed 'y the 'usiness community from small entrepreneur to 'ig
merchant and multinational, including top rated corporate and foreign investors, for
modern and innovative ideas and financial solution. 0haka Bank 5imited 10B52 started
its commercial operation as a Private ector Bank on =uly %$, 166$ #ith a target to play
the vital role on the socio-economic development of the country. +he ,uthorized 4apital
of the Bank at that time #as +k.1%%% million, divided into 1% million ordinary shares of
+k. 1%% each. +he issued, su'scri'ed, and paid up capital of the 'ank in 166$ #as +k.
1%% million, #hich #as paid fully 'y the sponsors. +he Bank offers a full range of
Personal, 4orporate, "nternational +rade, Foreign <:change, 5ease Finance and 4apital
3arket ervices. "t is the preferred choice in Banking for friendly and personalized
services, cutting edge technology, tailored solutions for 'usiness needs, ;lo'al reach in
+rade and 4ommerce and high yield on "nvestments, assuring <:cellence in Banking
ervices. 0haka Bank 5td provided 1$> cash dividend & 1%> stock dividend ?i.e.
11one2 'onus hare for every 1%1ten2 shares@ for the year that ended 0ecem'er *1, 2%%A
to its shareholders. +he Bank has 7$ 'ranches, 2 3< ervice 4enters, 1 Business
4enter, 2 Bffshore Banking Cnits across the country and a #ide net#ork of
correspondents all over the #orld. +he Bank has plans to open more 'ranches to e:pand
the net#ork. +he Bank offers the full range of 'anking and investment services #hich
'acked 'y the latest technology and a team of highly motivated officers and staff. "n the
effort to provide <:cellence in 'anking services, the Bank has launched Bnline Banking
service, -oined a country#ide-shared ,+3 net#ork and has introduced a co-'randed
credit card. , process is also under#ay to provide e-'usiness facility to the 'ank8s
clientele through online and Dome Banking olutions.
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3.3. ission Statement)
+o 'e the premier financial institution in the country providing high /uality
products and services 'acked 'y latest technology and a team of highly motivated
personnel to deliver- !6cellence in Bankin&.
3.-. 7ision)
,t 0haka Bank, #e dra# our inspiration from the distant stars. Bur team is
committed to assure a standard that makes every 'anking transaction a pleasura'le
e:perience. Bur endeavor is to offer you razor sharp sparkle through accuracy, relia'ility,
timely delivery, cutting edge technology, and tailored solution for 'usiness needs, glo'al
reach in trade and commerce and high yield on your investments.
3.8. Goal )
Bur people, products and processes are aligned to meet the demand of our
discerning customers. Bur goal is to achieve a distinction like the luminaries in the sky.
Bur prime o'-ective is to deliver a /uality that demonstrates a true reflection of our vision
F !6cellence in Bankin&.
3.2. 7alues)
G 4ustomer Focus
G "ntegrity
G +eam#ork
G !espect for the "ndividual
G Huality
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G !esponsi'le 4itizenship
3.9. #r&ani5ation structure of Dhaka Bank Limited)
Fi&ure) #r&ani5ation structure of Dhaka Bank
Limited
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$hairman
:
Board of Directors
:
ana&in& Director
:
De1uty ana&in& Director
:
Senior !6ecuti/e 7ice President
:
!6ecuti/e 7ice President
:
Senior 7ice President
:
7ice President
:
Senior Assistant 7ice President
:
First Assistant 7ice President
:
Assistant 7ice President
:
Senior Princi1al #fficer
:
Princi1al #fficer
:
Senior #fficer
:
#fficer
:
;unior #fficer
:
Assistant #fficer
:
Assistant "rainee #fficer
6
Part ' (((
Analysis)
A. 0atio Analysis)
Def of 0 A
Sl
No.
$ash 1osition 3<,< 3<<=
,.
bilities Currentlia
Securities Marketable Cash + %.2* %.22
3.
Sales
Securities Marketable Cash + 2.1$ 1.A1
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1%
-.
s TotalAsset
Securities Marketable Cash + %.1A %.1E
$omment)
2%1% is 'etter than 2%%6
2%1% is 'etter than 2%%6
2%1% is 'etter than 2%%6
B. Li>uidity 0atio)
Define
$omment)
,. 3<,< is better than 3<<=
3. 3<<= is better than 3<,<.
$. Workin& $a1ital)
Sl
No.
$ash 1osition 3<,< 3<<=
,.
Sales
n omOperatio CashFlowfr %.*1 %.2%
$omment)
,. 3<,< is better than 3<<=
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Sl
No.
$ash 1osition 3<,< 3<<=
,. ?uick 0atio @
bilities Currentlia
ceivable C A
ecurities arketableS ShorttermM Cash
!e I +
+

%.2E
%.2$
3.
$urrent 0atio)
bilities CurrentLia
ets CurrentAss %.*2 %.*6
11
D. $a1ital Structure)
Sl
No.
$ash 1osition 3<,< 3<<=
,.
rsEquity Shareholde
abilities LontermLi
1.77 1.96
3.
rsEquity Shareholde
bilities CurrentLia Lonterm+
11.E 2.62
$omment)
,A 3<<= is better than 3<,<.
3A 3<,< is better than 3<<=
!. Debt Ser/ice $o/era&e)
Sl
No.
$ash 1osition 3<,< 3<<=
,.
t rest!aymen Annual"nte
ncome Operatin"
1.1 %.E7
3.
rest#ate Annual"nte
n omOperatio CashFlowFr %.%79 %.2E
$omment)
,. 3<,< is better than 3<<=
3. 3<<= is better than 3<,<.
F. Profitability)
Sl
No.
$ash 1osition 3<,< 3<<=
,.
Profit ar&in @
venue
$et"ncome
!e
%.2* %.1*
$omment)
,. 3<,< is better than 3<<=.
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-.-. #r&ano&ram of Dhaka Bank Ltd)
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Board of Directors
Managing Director
Deputy Managing
Director
(Credit & Risk
Management)
Deputy Managing
Director (Operations)
EVP, F&AD
Vice
Preside
nt
Senior
Vice
President
Assistant
Vice
President
Vice
Preside
nt
Assistant
vice
President
First
Assistant
Vice
president
Senior
Assistant
Vice
President
Vice
Preside
nt
First
Assistant
Vice
president
SVP,
Operations
Division
SVP, Financial
nstit!tion
Division
SVP, A!dit &
Risk
Management
VP, Personal
"anking
Division
FAVP,
HRD
Fi&ure) #r&ano&ram of Dhaka Bank Limited
17
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