Performance Evaluation of a Private Commercial Bank

Internship Report On

Performance Evaluation of a Private Commercial Bank A case study on Export Import Bank of Bangladesh Limited

Submitted by

WWW.ASSIGNMENTPOINT.COM

______www.AssignmentPoint.com Page 1 of 71 Commercial Banks mediate or stand between ultimate borers and ultimate lenders and help transfer of funds from one to another. A commercial bank does this by borrowing funds from the savers and makes loans to borrowers. The value of Bank’s intermediation services is reflected by the difference of the interest rate received by the Bank from the borrower and that paid out to the depositors. This difference is the gross earnings of a commercial bank.

From gross earnings the cost of doing business are subtracted. The cost of bank includes bank’s employee payroll, cost of relevant equipment, materials and facilities etc. What remains after paying taxes is the bank’s profit, which is distributed among the shareholders.

The modern bank plays the following roles:

 The intermediation role

 The payments role

 The guarantor role

 The risk management role

 The savings/investment advisor role

 The safe keeping/certification of value role

 The agency role

 The policy role

1. The intermediation role: Transforming savings received primarily from households

into credit (loans) for business firms and others in order to make investments in new

buildings, equipment, and other goods.

2. The payments role: Carrying out payments for goods and services on behalf of their

customers (such as by issuing and clearing checks, wiring funds, providing a conduit

for electronic-payments, and dispensing currency and coin).

3. The guarantor role: Standing behind their customers to pay off customer debts when

those customers are unable to pay (such as by issuing letters of credit).

4. The risk management role: Assisting customers in preparing financially for the risk

of loss to property and persons.

______www.AssignmentPoint.com Page 2 of 71 5. The savings/investment advisor role: Aiding customers in fulfilling their long-range

goals for a better life by building, managing, and protecting savings.

6. The safekeeping/certification of value role: Safeguarding a customer’s valuables

and appraising and certifying their true market value.

7. The agency role: Acting on behalf of customers to manage and protect their property

or issue and redeem their securities (usually provided through the bank’s trust

department).

8. The policy role: Serving as a conduit for government policy in attempting to regulate

the growth of the economy and pursue social goals.

Source : Peter S. Rose, “Commercial Bank Management”, McGraw-Hill Irwin, 5th edition, 2005

1.1 Origin of the Report:

This report has been prepared as a partial requirement and fulfillment of my MBA program.

I have conducted this report on “Performance evaluation of a Private Commercial Bank: A case study on Export Import Bank of Bangladesh Limited (EXIM Bank Ltd).”A comprehensive study was selected and then my supervising Professor Mr. Mijanur

Rahaman , EMBA Program, Department of Marketing , approved and assigned the topic to me.

1.2 Rationale of the Study:

With rapid growing competition among nationalized, foreign and private commercial Banks as to how the Banks operates it banking operation and how customer service can be made more attractive and effective as the expectation of customers has immensely increased.

Reciprocating to the sentiment, private commercial Banks are trying to elevate their traditional Banking service to a better standard to meet the challenging needs. Side by side,

______www.AssignmentPoint.com Page 3 of 71 commercial Banks have now concentrated their attention towards diversification of their products for better result.

Under the above circumstances, it has become necessary for Export Import Bank of

Bangladesh Limited, one of the leading commercial Banks, to focus its attention towards the improvement of the customer service and its performance in respect of business.

That is why, it is quite justified to make an evaluation about its operation and the service provided by the Bank and scope of its improvement. The study may help in formulating policy regarding the ideas relating to the feelings of customers and Bankers.

1.3 Objectives of the Study:

General Objectives of the study:

 The main objective of this report is to evaluate the overall performance of Export Import

Bank of Bangladesh Ltd along with how efficiently the Bank is providing services to its

customer

Specific objectives of the study:

 To present an overview of Export Import Bank of Bangladesh Limited

 To make a study of the facts in order to arrive at certain conclusion about overall

Banking operation and the growth, expansion and profitability of a private

sector Bank.

 Critically analyze the functions and the operations of each level of the of Export

Import Bank of Bangladesh Limited and to suggest remedial measures for the

smooth development of the Bank.

______www.AssignmentPoint.com Page 4 of 71 1.5 Scope of the Study:

Performance Evaluation of any organization is a difficult job due to insufficient information, data and related documents. However to develop a clear picture about the Performance

Evaluation and make a complete comparison, this report has followed the under noted frames:

 At first, the performance of Export Import Bank of Bangladesh was measured

of its year to year performance, then it was compared with other 03 (three)

cotemporary Banks i.e. Southeast Bank Ltd., Mercantile Bank Ltd. and

Standard Bank Ltd.

 Informal discussions with the managers, Divisional Heads and other officers

& executives of the concerned Banks were taken into consideration in the

process of Performance Evaluation.

 Annual reports, Financial Statements Brochures and various files &

documents of 04 (four) contemporary Private Commercial Banks were taken

into consideration for measuring performance evaluation.

 Basing on the analysis and limitations of the performance evaluation of the

concerned Bank, few recommendations are made at the end.

______www.AssignmentPoint.com Page 5 of 71 ______www.AssignmentPoint.com Page 6 of 71 2.1 : Concept of Performance Evaluation

Performance means doing a job effectively and efficiently. Performance Evaluation System means a mechanism for improving the likelihood of the organization successfully implementing its strategy. It is a process to have the goal of strategy implementation. In this process senior management selects a series of measures that best represent the organization’s strategy.

The performance evaluation of a Bank is not so easy as there is hardly any consensus on the possible measures of evaluating performance. The selection of performance measures of

Export Import Bank of Bangladesh Limited has been influenced by the availability of data.

This report is conducted basing on empirical and study basis. A systematic study on Annual

Reports, Various Statements, Brochures and Journal of 04 (four) Banks has been considered

______www.AssignmentPoint.com Page 7 of 71 to measure the performance. Desk-to-Desk work experience and opinion of officers, executives and customers of different levels have also been considered for evaluation of performance.

First of all, year-to-year comparisons of EXIM Bank’s performance were made then those were compared with other 03 (three) contemporary private commercial Banks’ performance.

For this reason, some performance indicators like Deposit, Loans & Advances, Operating

Profit, Classified Loans etc. are considered along with other performance indicators. The main methodology of the report regarding performance evaluation is mentioned below:

a) Year- to- year comparison of EXIM Bank’s performance

b) Comparisons with other 03 (three) private commercials Banks.

This study is based on the statements and reports available form the Bank management

Information System. Beside this, some secondary materials such as books, journals, reports etc. have also helped in preparing the report.

2.2 : Using Performance Indicators

To evaluate the performance of Export import Bank of Bangladesh Limited, the following indicators/ factors are considered:

1. Capital of the Bank

2. Deposits of the Bank

3. Loans and Advances of the Bank

4. Operational Income of the Bank

5. Operational profit of the Bank

6. Import business of the Bank

7. Export business of the Bank

______www.AssignmentPoint.com Page 8 of 71 8. Earning Assets of the Bank

9. Earning per share of the Bank

10. Number of Branches of the Bank

11. Number of employees of the bank

12. Percentage of classified loans of the Bank

2.3 : Method / Sources of Data Collection

This report is prepared mainly on the extensive use of secondary data available in different texts, annual reports, journal, Banking related books etc as well as primary data. The primary data is collected from the target group of employees and customers of banks by means of informal interviews. The inputs are collected from two sources:

 Primary Sources:

. Discussion with Bank Executives & Officials and prime customers of

04 (four) commercial banks in Bangladesh.

. Personal observation and assessment.

. Desk works in different sections/ departments and divisions of Banks.

 Secondary Sources:

. Annual report of the Banks.

. Consultation of related books, journals and publications.

. Different statements of Banks.

. File; Balance sheets and various documents.

 Data Processing:

. Collected information is processed through data processing software.

______www.AssignmentPoint.com Page 9 of 71 . Different analysis, working variables and working definitions is

embodied in the report.

2.5 : Limitation of the Study:

 In preparing this report, it was difficult to communicate with the much

customers of Bank, as many of them were hesitant to respond. As a result, the

sample size is not so big.

 In preparing this report, another limitation is policy of Bank not to disclosing

some data and information for obvious reason that might be very much

useful.

 The outlet owners might have got a little biased on the fact. Because they

thought that the study was being prepared for the particular department.

 I could not be able to accommodate and spend enough time to make an in

depth study for excessive in my official works.

 Although the scope of the study was required to include more numbers of

Private Commercial Banks for measuring performance evaluation which may

also be a limitation of my study.

______www.AssignmentPoint.com Page 10 of 71 ______www.AssignmentPoint.com Page 11 of 71 3.1 Historical background of commercial banking:

Linguistics (the science of language) and etymology (the study of the origin of words) suggest an interesting story about banking’s origins. Both the Old French word “banque” and Italian word “banca” were used centuries ago to mean a “bench” or “money changer’s table”. This describes quite well what historians have observed concerning the first bankers, who lived more than 2001 years ago. They were money changers, situated usually at a table or in a small shop in the commercial district, aiding travelers who came to town by

______www.AssignmentPoint.com Page 12 of 71 exchanging foreign coins for local money or discounting commercial notes for a fee in order to supply merchants with working capital.

The first bankers probably used their own capital to fund their activities, but it wasn’t long before the idea of attracting deposits and securing temporary loans from wealthy customers became an important source of bank funding. Loans were then made to merchants, shippers, and landowners at rates of interest as low as 6 percent per annum to as high as 48 percent a month for the riskiest ventures. Most of the early banks of any size were Greek in origin.

The banking industry gradually spread outward from the classical civilizations of Greece and Rome into northern and western Europe. Banking encountered religious opposition during the Middle Ages, primarily loans made to the poor often carried very high interest rates. However, as the Middle Ages drew to a close and the Renaissance began in Europe, the bulk of bank loans and deposits involved relatively wealthy customers, which helped to reduce religious opposition to banking practices.

The development of new overland trade routes and improvements in navigation in the 15th,

16th, and 17th centuries gradually shifted the center of world commerce from the

Mediterranean region toward Europe and the British Isles, where banking became a leading industry. During this period were planted the seeds of the Industrial Revolution, which demanded a well-developed financial system. In particular, the adoption of mass production methods required a corresponding expansion in global trade to absorb industrial output, requiring new methods for making payments and credit available. Banks that could deliver on these needs grew rapidly, led by such institutions as the Medici Bank in Italy and the

Hochstetter Bank in Germany.

When colonies were established in North and South America, Old World banking practices were transferred to the New World. At first the colonists dealt primarily with established banks in the countries from which they had come. As the 19th century began, however, state governments in the United States began chartering banking companies. Many of these were ______www.AssignmentPoint.com Page 13 of 71 simply extensions of other commercial enterprises in which banking services were largely secondary to sale; for example, the farm equipment business. The development of large, professionally managed banking firms was centered in a few leading commercial centers, especially New York. The federal government became a major force in U. S. banking during the Civil War. The Office of the Comptroller of the Currency (OCC) was established in 1864, created by Congress to charter national banks. This divided bank regulatory system, with both the federal government and the states playing key roles in the control and supervision of banking activity, has persisted in the United States to the present day. (1)

3.1.1 Banking during the British period:

In the history of India, for the first time, in 1770, Alexander and Company, an agency house, established a bank in Calcutta. Hindustan Bank was the first European bank in Calcutta. It closed its operations in 1832 after its parent company was dissolved. However, after 15 to 16 years of the establishment of Hindustan Bank another two banks, i.e. Bengal Bank (1785) and

General Bank of India (1786) were established. But these two banks were closed shortly after their inception. In 1806, Bank of Calcutta and Presidency Bank of Bengal were established. In the year 1809, Bank of Calcutta adopted its new name Bank of Bengal. In 1819, Srirampur Savings

Bank and Commercial Bank were established. Commercial Bank terminated its operation in

1833. Calcutta Bank was established in 1824. An agency house named Paner and Company established it. Calcutta Bank terminated its operations in 1829. In the year 1829, Union Bank was established with the joint collaboration of the Bengalis and the English. But in the year

1842, Union Bank fell into economic depression and as a result the bank terminated its operations in 1850. In the year 1833, Government Savings Bank was established upon being influenced by the success of Srirampur Savings Bank.

In 1840, Presidency Bank of Bombay and in 1843, Presidency Bank of Madras was established.

The merger of the three Presidency Banks gave birth to Imperial Bank of India in 1920 which is now known as State Bank of India. In the year 1844, Delhi and London Bank was established and in the year 1853, Chartered Bank of India, Australia and China was established. The year ______www.AssignmentPoint.com Page 14 of 71 1860 was the transition period as in this year; it was imposed on banks to act as limited liability Company. In the year 1863, Calcutta Banking Corporation was established. After one year, Calcutta Banking Corporation adopted its new name National Bank of India. A good number of banks were established from the year 1906 to 1914. Bank of India Limited (1906),

Bank of Boroda Limited (1908), Eastern Bank (1910), Central Bank of India Limited (1911) and

Indian Space Bank (1914) were among them.

During the beginning of the twentieth century, in the then undivided Bengal, several banks were established. Comilla Banking Corporation, New Standard Bank, Comilla Union Bank, Pioneer

Bank, Bengal Central Bank, Hugli Bank, Nath Bank, Islamabad Town Bank of Chittagong, Comrede

Bank and Indian Crecent Bank were among them. Bengal central Bank was established in 1918.

Comilla Union Bank and Pioneer Bank were established in 1922. Hugli Bank and Nath Bank were established in 1932. New Standard Bank merged itself with Comilla Banking Corporation in 1946. Properties and liabilities of all branches of Nath Bank was transferred to Eastern

Banking Corporation in 1950. In the same year, Comilla Banking Corporation, Comilla Union

Bank, Bengal Central Bank and Hugli Bank merged into United Bank of India which is now a nationalized bank of India. In 1963, Prabartak Bank and Bank of Bakura merged with United

Industrial Bank. (2)

3.1.2 Banking during the Pakistan period:

In 1947, there was only one modern bank named Australasia. Habib Bank that was established in 1941 in Bombay shifted its head office from Bombay to Karachi immediately after the emergence of Pakistan. Muslim Commercial Bank and Bank of Bhaowalpur were established in

1948. Since then, many banks were being established in Pakistan gradually. Entrepreneurs of those banks were either from West Pakistan or immigrant from India. In 1959, Eastern

Mercantile Bank was established in the East Pakistan, which was a joint venture of Bengalis and non-Bengalis with its head office in Chittagong. That was the first schedule Bank in East

Pakistan. State Bank of Pakistan contributed to the capital of the bank. At the beginning of

______www.AssignmentPoint.com Page 15 of 71 the 1970s one of the influential director Mr. Aga Hasan Abedi quited himself from Habib

Bank and established United Bank Limited. He started offensive banking from the very beginning. Issues and wards of East Pakistani bureaucrats, political leaders, land lords and influential persons were being recruited in the bank. He gave priority to the East Pakistan and opened new branches in rural areas. In the face of stiff competition, other banks including “Habib Bank” and “Muslim Commercial Bank” started to open their branches in the rural areas. All of those events did not appease dissatisfaction accumulated in the mind of the people of East Pakistan. Those banks based on West Pakistan did not appoint Bengalis as manager or general manager whereas to appoint as a managing director was beyond of thinking. Bengalis were being used for collecting deposits. They were not trained to work in credit and foreign Exchange division. Necessity of a bank of Bengali community emerged amid those obscured dissatisfaction. In that perspective Eastern Banking Corporation was created on the 28th January,1965 with wholly Bengali ownership. Eastern Banking

Corporation started its activities as a scheduled bank on the 22nd June, 1965. Paid up capital of the bank were 14 lakhs and 21 thousands taka only at the time of inception.

During the liberation war, there were only two banks owned by Bangalis. One was Eastern

Banking Corporation and another was Eastern Mercantile Bank. Those banks were comparatively small in size and wealth. Thirty percent deposits of Bangladesh were under control of the banks owned by Bengalis and seventy percent deposits were under control of

Pakistani banks. (3)

3.1.3 Banking after the emergence of Bangladesh:

Nationalization of banks was included in the 11-point charter demands placed at the time of mass-upsurge in 1969. At that time, 22 families of West Pakistan were exploiting different business and industry including banks and insurance. After the emergence of Bangladesh the process of nationalization of banks began. At that time, 22 banks and financial institution

______www.AssignmentPoint.com Page 16 of 71 were in operation. The ownership scenario of banks and financial institutions is shown below:

No. of Banks

1. Banks owned by West Pakistanis 12

2. Banks owned by Bengalis 02

3. Foreign Banks except Pakistan 03

4. Indian Banks under Deputy Custodians 05

Five Indian banks were excluded from reconstruction and nationalization process. It is to mention that those five banks were inactive since 1965, as government had declared them as

Enemy Property after the India-Pakistan war in 1965. Management of those banks lied on

Deputy Custodian for the liquidation process.

Three foreign banks were excluded from reconstruction and nationalization process. Those were the followings:

1. National and Grindleys Bank.

2. Chartered Bank, and

3. American Express International Banking Corporation.

Out of the rest fourteen banks, two were financial institution and the other twelve were banks. Two financial institutions were reconstructed and converted as below:

Pre-Liberation Post-liberation

1. Industrial Development Bank of Pakistan Bangladesh Shilpa Bank

2. Agricultural Development Bank of Pakistan Bangladesh Krishi Bank

Out of twelve commercial banks, only two belonged to Bengali ownership and the rest ten belonged to non-Bengali Pakistani ownership. Those twelve banks were reconstructed and nationalized as follows:

______www.AssignmentPoint.com Page 17 of 71 Pre-nationalization Nationalized Bank 1. National Bank of Pakistan

2. Bank of Bhawalpur Ltd. Sonali Bank

3. Premier Bank Ltd. 1. Habib Bank Ltd. Agrani Bank 2. Commerce Bank Ltd. 1. United Bank Ltd. Janata Bank 2. Union Bank Ltd. 1. Muslim Commercial Bank Ltd.

2. Standard Bank Ltd. Rupali Bank

3. Australasia Bank Ltd. 1. Eastern Mercantile Bank Ltd Pubali Bank

1. Eastern Banking Corporation Uttara Bank

It is to be mentioned that though Eastern Mercantile Bank Ltd. and Eastern Banking Corporation owned by Bengalis were small in size compared to other banks owned by Pakistanis, those were treated as separate entity. Whereas two or three banks of Pakistani ownership merged into one bank, banks owned by Bengalis were taken as individual entity. Only their names were changed (4).

3.1.4 Private banks in Bangladesh:

In 1976, the then government approved the establishment of a finance company in the private sector with joint collaboration of private and public sector. Following that decision,

International Finance Investment and Commerce Limited started its operations. In 1982, the government approved for banking operations in private sector. To make a competitive

______www.AssignmentPoint.com Page 18 of 71 environment in the banking sector, implementation of privatization process of banks and approval for new banks were going simultaneously.

During the period of 1982-83, there were seven private commercial banks were established.

Those were the followings:

a) Two denationalized banks:

1) Pubali Bank Limited

2) Uttara Bank Limited

b) Four newly established banks:

1) Arab-Bangladesh Bank Limited

2) The City Bank Limited

3) National Bank limited

4) United Commercial Bank Limited

c) One bank converted from a finance company:

1) International Finance Investment and Commerce Bank Limited

During the period 1993-2002, the government approved some other fifteen private commercial banks to start their operation. Those are the followings:

1. National Credit and Commerce Bank Limited

2. Southeast Bank Limited

3. Prime Bank Limited

4. Dhaka Bank Limited

5. Dutch Bangla Bank Limited

6. Mercantile Bank Limited

7. Standard Bank Limited

8. One Bank Limited

______www.AssignmentPoint.com Page 19 of 71 9. Export Import Bank of Bangladesh Limited (EXIM Bank Limited)

10. Mutual Trust Bank Limited

11. First Security Bank Limited

12. Premier Bank Limited

13. Bank Asia Limited

14. Jamuna Bank Limited, and

15. BRAC Bank Limited

Source: Devnath, R. M. “Bangalir Bank Babyasha”, Nabajug Prokashani, 1st edition, 2004

3.02 : Historical background of EXIM Bank

Export Import Bank of Bangladesh Ltd is a newly formed commercial bank but it is the 1st of its kind in Bangladesh. It has been incorporated in Dhaka, Bangladesh as a public limited company under Banking Company ACT 1991 in the 2nd June 1999 and its Head Office is located at Printers Buildings, 5 Rajuk Avenue, Motijheel Commercial Area, Dhaka.

The Bank was established under the leadership of late Mr. Shahjahan Kabir, the founder chairman who had a dream to contribute in the socio-economic development of our country.

A highly qualified group of entrepreneurs expanded their hands with the founder chairman to materialize his dream. All the sponsors are well experienced and successful in their respective business areas. Among them Mr. Nazrul Islam Mazumder became the honorable

Chairman after the death of the founder Chairman.

The Bank commenced formal commercial banking operation on 3rd August 1999 with

Mr.Alamgir Kabir , FCA as the advisor and Mr.Lakiotullah as the Managing Director. Both of them have a long experience in the financial sector of our country. By their pragmatic decision and mangement directives in the operational activities, the Bank has earned a secured and distinctive positive position in the banking sector in terms performance, growth and excellent management.

______www.AssignmentPoint.com Page 20 of 71 The Bank has been listed on 26.09.2005 in the Dhaka Stock Exchange by issuing Initial public offer. Its total number share is 62,77,500.00. At present it is one of the best share in the stock market.

The Bank has a sound capital base; its authorized capital is for BDT 1000 million while its initial paid up capital was BDT. 225 million subscribed by the sponsors. The capital and reserve in the mean time has already been raised to BDT 1400 million by retain earnings as on 31st December 2005 and by offering public shares in September 2005.

At its inception in 1999, Bank was named as ‘BEXIM Bank Ltd’ (acronym for “Bengal

Export Import Bank Limited”) and owing to raising an objection by BEXIMCO group regarding the similarity in names, the Bank was renamed in the same to the style of ‘EXIM

Bank Ltd’ (acronym for ”Export Import Bank of Bangladesh Limited”).

3.03: Corporate Mission of the Bank.

The EXIM Bank Ltd. has completed its successful existence and now it has taken a revolution of its business operation in year 2005 searching incremental improvement in productivity, operational efficiency and structure consequently, a new organizational structure has been developing according to business focus, priorities and competitive pressures. The corporate missions of the Bank are mentioned below:

1.To provide excellent quality customer service.

2.To provide high quality financial services in foreign trade.

3.To maintain corporate and business ethics.

4.To create employment opportunity by project finance.

5.To play role in the socio-economic development

6.To become trustworthy to the depositor and the borrowing customer.

7.To make a sound capital base and to provide a hand some amount of dividend to

share holder.

3.04 : Corporate Cultures.

______www.AssignmentPoint.com Page 21 of 71 EXIM Bank is one of the most disciplined and regularized Bank in the Banking sector having corporate culture. The Bank has a corporate management and it believes in sharing understanding of individual job. The people who are working in the Bank have team spirit to achieve the corporate mission and it has not been imposed, it has rather been achieved through their corporate culture. The top level management, mid level management and lower level management has a very nice understanding and excellent combination among the executives and officers which has been grown up from their corporate culture.

3.05 : Financial products and services

The Bank has already introduced number of financial products such as Mudaraba Monthly

Savings Scheme, Mudaraba Monthly Income Scheme, Mudaraba Super Savings Scheme,

Mudaraba Multi Plus Saving Scheme, Mudaraba Smart Saver Scheme, Credit Card, and

Mudaraba Education Savings Scheme have achieved a great acceptance among the people.

In addition to this, schemes like Consumers Credit, On Line Banking and other lucrative schemes will be introduced soon.

3.06 : Different types products.

In addition to traditional banking products, EXIM Bank has a fleet of special products. The

Bank has already introduced the following financial products are being marketed by the

Bank. Moreover, the schemes like Consumers Credit, Online Banking and other lucrative schemes will be introduced by the Bank within the shortest span of time.

 Mudaraba Monthly Income Scheme

 Mudaraba Monthly Saving Scheme

 Mudaraba Multiplus Savings Scheme

______www.AssignmentPoint.com Page 22 of 71  Mudaraba Super Savings Scheme

 Mudaraba Hajj Scheme

 Credit Card

Mudaraba Monthly Income Scheme:

It is a monthly income scheme that really makes good sense as well as a sure investment of steady return. Under this Scheme, customer has to deposit a fixed amount of money for

03 (three) years and in return he will receive benefits on monthly basis. Benefits start right from the first month of opening an account under the Scheme and will continue up to

03 (three) years when the depositor will get refund of his deposit. This scheme is a sure investment for a steady return.

Mudaraba Monthly Saving Scheme:

The prime objective of this Scheme is to encourage people to build up a habit of savings. In this scheme one can save a fixed amount of money every month and receive substantial lump sum of money after five, eight, ten or twelve years.

Mudaraba Multiplus Savings Scheme:

Under this scheme, depositor’s money will be almost tripled in 10 (ten) years period. Any individual, Company, Educational Institution, Government Organization, NGO, Trust,

Society etc. may invest their savings under this scheme.

Mudaraba Super Savings Scheme:

It helps to build up capital. Super Saving Scheme offers a small depositor to invest his fund

(minimum 10,000/-) and the fund will be almost double in 6 (Six) years period. This scheme will secure the future of the investment with ease. ______www.AssignmentPoint.com Page 23 of 71 Mudaraba Hajj Scheme:

In order to smooth arrangement of fund for performing Hajj, the bank has introduced this scheme for 5, 8, 10, 15 & 20 years period.

Credit Card:

The Bank has launched Master Card among its customers in joint collaboration with Prime

Bank Ltd.

3.07 : Financing Area

 Project Financing

 Corporate Financing

 Hire Purchase Financing

 Trade Financing

 Syndication Financing

 Export Import Financing

3.08 : Management

To run an organization very smoothly management plays the vital role and the strength of the organization depends on the strength of its management. EXIM Bank may feel proud of its highly qualified, motivated, well educated and experienced executives and officers who are contributing to achieve the incremental success and progress of the Bank This Bank has a very nice combination in the every stage of management and the management is very much capable to handle the every challenges to achieve organizational goal by utilizing its human resources and organizational process i.e. planning, organizing, co-coordinating, controlling and motivating.

______www.AssignmentPoint.com Page 24 of 71 3.09 : Organizational structure

Organizational Structure

Managing Director

Deputy Managing Director Deputy Managing Director Deputy Managing Director

Sr. Vice President Vice President Vice President Sr. Asstt. Vice President Vice President Sr. Asstt. Vice President

Officer Staff Officer Staff Officer Staff Officer Staff Officer Staff Officer Staff

3.10 : Automation

Basic Accounting Systems of the Bank Branches has been automated to optimize benefits and increase overall efficiency for offering superior customer services by way of increased speed, accuracy and ensures security. The Bank has continuously looked for more and more sophistication and efficiency and in this regard, the Bank has established Information

Technology (IT) Department on top priority areas.

3.11 : Human Resources (HR) Division

______www.AssignmentPoint.com Page 25 of 71 There is no alternative to skilled and trained manpower in service industry. Having this in mind, the well educated, promising and honest workers are being selected and trained. Bank has given top priority to developing skilled manpower and introducing them with modern technologies with a view to develop quality customer services.

As on 31-12-2005 the total manpower of the Bank in different grades was as under:

Table # 3.11 : Manpower of EXIM Bank

Designation Number of employees Percentage Executives 72 5.47% Officers 656 72.40% Staff/Casual and others 325 22.14% Total: 768 100% Source : Annul Report of EXIM Bank - 2005

3.12: Training and Development

There is no alternative of skilled and trained manpower. Considering the same EXIM Bank gives emphasis on training and development for achieving perfection in the quality of their service. To reach their expected goals, the Bank encourages and provides the right opportunities for employees. EXIM Bank has its own training institute located at Eskaton road, Dhaka where all employees and executives are being trained up by the experienced

Bankers and specialists in the financial sectors. Except this, the Bank sends their officers and executives to BIBM, Bangladesh Bank Training Institute and abroad.

3.13 : EXIM Bank Foundation

The Board of Directors of EXIM Bank has unanimously decided to establish a foundation under the name and style “EXIM Bank Foundation” to undertake social welfare activities and charitable purpose. The name clearance of the foundation has already been obtained from Registrar of Joint Stock Companies & Firms and the draft constitution of the

______www.AssignmentPoint.com Page 26 of 71 Foundation has been finalized. Now it is under process of registration with the permission of the Government. A certain portion of the operating profit of the Bank is usually provided in the foundation.

3.14 SWOT Analysis

SWOT analysis refers to analysis of Strengths, Weakness, Opportunities and Threats of the organization. This facilitates the organization to make its future performance improved in comparison to its competitors. An organization can also study its current position through

SWOT analysis. For all of these, SWOT analysis is considered as an important tool for making changes in the strategic management of an organization.

Strengths:

1. EXIM Bank has already established its wide image and favorable

reputation in the banking territory of the country. It is one of the leading private

sector commercial banks in Bangladesh.

2. The bank posses the reputation and goodwill of quality services to its

all kinds of customers.

3. The bank has already achieved a high growth rate of deposit,

investment and profit.

4. The bank has trained, experienced and well educated manpower.

5. The bank has unique corporate culture, which acts as a great

motivational factor among the employees.

6. The working environment in the bank is very friendly, interactive and

informal. There is no barrier or boundary for communication between the superiors

and the employees.

7. The bank has experienced and efficient Management & Board of

Directors.

______www.AssignmentPoint.com Page 27 of 71 Weaknesses :

1. The promotional activities of the Bank are not adequate to widen its function.

2. The Branches of the bank have to depend on its Head office for decisions.

3. The bank does not provide online banking service and ATM service, which limits its competence in the fast changing banking sector.

4. The product diversification of the bank is very narrow.

5. The bank has more redundant lower level manpower compared to other banks of the same generation, which increases it operational cost.

Opportunities :

1. Our people are going to be savings oriented in the small scheme, which can be provided

by EXIM bank by its different schemes.

2. EXIM bank may help small and medium enterprises by lending.

3. The bank can introduce special corporate schemes for corporate customers or service

holders according to the professions, such as engineers, lawyers, and doctors etc.

4. The bank can introduce ATM service and Online banking to compete with the local and

foreign banks.

Threats:

1. Some foreign and local banks may be threats for EXIM bank for their financial

products.

2. Regulatory restrictions may be a cause of threats.

3. The selection of default customers may be a hindrance of its rapid growth.

4. In our country industries are becoming sick at an increasing rate and growth of

industrialization is very slow in the country. Therefore, it is very likely that poor

industrial growth will affect the potentiality of EXIM Bank.

______www.AssignmentPoint.com Page 28 of 71 ______www.AssignmentPoint.com Page 29 of 71

4.1: Year-to-Year Performance Evaluation of EXIM Bank :

To evaluate the performance of Export Import Bank of Bangladesh Limited, the following indicators / factors are considered:

1. Capital of the Bank

2. Deposits of the Bank

3. Loans and Advances of the Bank

4. Operating Income of the Bank

5. Operating profit of the Bank

6. Import business of the Bank

7. Export business of the Bank

8. Profit Earning Assets of the Bank

______www.AssignmentPoint.com Page 30 of 71 9. Earning per share of the Bank

10. Number of Branches of the Bank

11. Number of employees of the bank

12. Percentage of classified loans of the Bank

4..1.1 : Capital Structure

Capital Structure of EXIM Bank is changing from year to year. The component of the capital structure are Paid Capital, Proposed issue of dividend, Share Premium, Statutory Reserve,

Proposed Cash Dividend, Retained Earnings and other reserve.

4..1.2 : Components of Capital Structure:

Figures of different components of the capital structure for the year 2003, 2004 and 2005 are shown below:

(Figure in million Taka) Components 2003 % 2004 % 2005 % Paid-up capital 253.125 45.91% 313.875 41.95% 627.750 44.84% Proposed issue of bonus 60.750 11.02% - - 251.100 17.94% share Share Premium 8.575 14.98% 82.575 11.03% 94.163 6.73% Statutory reserve 132.501 24.03% 228.202 30.50% 62.775 4.48% Proposed cash dividend 20.250 3.67% - - - - Dividend equalization - - - - 357.329 25.52% account Retained earnings 2.131 0.39% 123.622 16.53% 6.887 0.49% Total 551.332 100.00 748.274 100.00 1400.04 100.00 % %

______www.AssignmentPoint.com Page 31 of 71 From the above table we can see that Paid-up Capital was the largest component of the

Bank’s capital structure for each year though contribution of this component in the capital structure was declining gradually.

4..1.3 : Pie Chart of Capital Structure:

Pie Chart of capital structure for the year 2005 is shown below:

Figure # 4.1 Capital Structure of 2004

357.329 627.75 0 251.1 62.775 94.163

Source: Annual Report EXIM Bank-2005

4.1.4 : Deposit Structure

Deposit structure of EXIM Bank has changed year to year. The components of the deposit structure are Alwadeah Current Deposit, Bills Payable, Mudaraba Savings Bank Deposit,

Mudaraba Term Deposit, Call Deposits, Bearer Certificate Deposit and Foreign Currency

Deposits.

Table # 4.1 : Growth of Deposit [BDT in Million] Particulars 2001 2002 2003 2004 2005 Deposit 3,934.47 7,255.02 9,945.23 15,242.97 19,078.18

Source : Annual Reports of EXIM Bank

Total amount of deposit of the Bank stood at 19,078.18 million as on December 31,2005 as against Tk.15,242.97 million as on December 31, 2004 showing an increase of Tk.3,835.21 million with growth rate of 25.16%.

______www.AssignmentPoint.com Page 32 of 71 Similarly total amount of deposit of the Bank stood at 15,242.97 million as on December

31,2004 as against Tk.9,945.23 million as on December 31, 2003 showing an increase of

Tk5,297.74 million with growth rate of 53.27%.

Similarly total amount of deposit of the Bank stood at 9,945.23 million as on December 31,

2003 as against Tk7,255.02 million as on December 31, 2002 showing an increase of

Tk.2,690.21 million with growth rate of 37.08%.

So we can see that the total deposit of Export Import Bank of Bangladesh Ltd is increasing year-to-year.

4.1.5 : Components of deposit structure and correspondent contributions

Figures of different components of deposit structure for the year 2003, 2004 and 2005 are shown below

Table # 4.2 : Component of Deposit Structure (Figure in million Taka) Components 2003 % 2004 % 2005 % Alwadeah Current Deposit 888.423 8.93 1258.920 8.26 2012.789 10.56 Bills Payable 60.615 0.61 101.051 0.66 138.048 0.72 Mudaraba Savings Bank 613.662 6.17 998.240 6.55 1159.670 6.07 Deposit Bearer Certificate Deposit 221.054 2.22 - - - - Mudaraba Term Deposit 7005.226 70.44 12027.461 78.90 15716.471 82.38 Call Deposit 1135.000 11.41 820.000 5.38 - - Foreign Currency 21.245 0.22 37.297 37.29 51.197 0.27 Deposits. Total 9945.22 100.0 15242.96 100.00 19078.17 100.00 5 0 9 5 % Source : Annual Reports of EXIM Bank

From the above table we can see that Mudaraba Term Deposit was the largest components of the Bank’s deposit structure. In the base year 2003 Mudaraba Term Deposit was 70.44% of total deposit, which has been increased to 82.38% in the year 2005.

It is pertinent to mention here that the Bank has the tremendous improvement on its year-to- year deposit. In the base year the deposit was Tk.9945.225 million which has been increased in to 19078.175 million i.e. 92% increase of the base year. ______www.AssignmentPoint.com Page 33 of 71 4..1.6 : Pie Chart of deposit structure:

Figure # 4.3 Deposit structure-2004

1159.67

2012.79

138.05 0.00

19078.18 15716.47

51.20 0.00

Source: Annual Report of EXIM Bank-2005

4.1.7 : Investment (Loans & Advances):

Investment of Export Import Bank of Bangladesh include Izara Bill Baia(Term Finance),

Murabaha Post Import (LIM), Murabaha Trust Receipt (LTR),Bai Murabaha(CCP), Bai

Muazzal(CCH), Wazirat Bill Wakala(ECC) and Quard(SOD) etc. The details of the investment modes are shortly discussed below:

a) Izara Bill Baia(Term Finance)

 Izara Bill Baia(HB)

 Izara Bill Baia(LF)

 Izara Bill Baia(Staff HB) Baia

b) Murabaha Post Import (MPI)

c) Murabaha Trust Receipt (MTR)

d) Bai Murabaha (CCP)

e) Bai Muazzal (CCH)

f) Wazirat Bill Wakala (ECC) g) Quard against SS/MTDR:

______www.AssignmentPoint.com Page 34 of 71  Quard against Savings Scheme  Quard against Mudaraba Term Deposit Receipt

The year-to-year Investment of EXIM Bank is mentioned below: Table # 4.3 :Growth of Investment [BDT in Million] Particulars 2001 2002 2003 2004 2005 Investment (Loans & 2,170.53 5,131.55 7,954.56 12,289.12 19,332.44 Advances) Source : Annual Reports of EXIM Bank

Total amount of Investment of the Bank stood at 19,332.44 million as on December 31,2005 as against Tk.12, 289.12 million as on December 31, 2004 showing an increase of Tk.7043.32 million with growth rate of 57.31%.

Similarly total amount of Investment of the Bank stood at 12,289.12 million as on December

Similarly total amount of Investment of the Bank stood at 7,954.56 million as on December

31, 2003 as against Tk. 5,131.55 million as on December 31, 2002 showing an increase of

So we can see that the total investment of Export Import Bank of Bangladesh Ltd is increasing year-to-year.

The corresponding graphical output is given below:

Investment (Loans & Advances) Figure # 4.4:

19,332.44

20,000.00 12,289.12 7,954.56 5,131.55 10,000.00 2,170.53

2000 2001 2002 2003 2004

Ye a r

Source: Annual Reports of EXIM Bank

______www.AssignmentPoint.com Page 35 of 71 4.1.8 : Export Businesses:

EXIM Bank gives more importance on Export business from its inception. The year-to-year

Export businesses of EXIM Bank are mentioned below:

Table # 4.4 :Growth of Export Business [BDT in Million] Particulars 2001 2002 2003 2004 2005 Export Business 2,797.30 7442.20 10,088.30 15,124.60 22,418.40 Source: Annual Reports of EXIM Bank

Total amount of Export business of the Bank stood at 22,418.40 million as on December

31,2005 as against Tk.15, 124.60 million as on December 31, 2004 showing an increase of Tk.7,

293.80 million with growth rate of 48.22%.

Similarly total amount of Export business of the Bank stood at 15,124.60 million as on

December 31,2004 as against Tk. 10,088.30million as on December 31, 2003 showing an increase of Tk.5, 036.30 million with growth rate of 49. 92%.

Similarly total amount of Export business of the Bank stood at10, 088.30 million as on

December 31,2003 as against Tk.7,442.20 million as on December 31, 2002 showing an increase of Tk.2,646.10 million with growth rate of 35.55%.

Figure # 4.5: Export Business

30,000.00 22,418.40 15,124.60 20,000.00 10,088.30 7,442.20 10,000.00 2,797.30

2000 2001 2002 2003 2004

______www.AssignmentPoint.com Page 36 of 71 4.1.9: Import Business:

EXIM Bank gives emphasis on Import business from its inception. The year-to-year Import businesses of EXIM Bank are mentioned below:

Table # 4.5 : Growth of Import Business [BDT in Million] Particulars 2001 2002 2003 2004 2005 Import Business 4,199.70 8,519.70 13,152.50 19,260.10 26,781.80

Source: Annual Reports of EXIM Bank Total amount of Import business of the Bank stood at 26,781.80 million as on December

Tk.7, 521.70 million with growth rate of 39.05%.

Similarly total amount of Import business of the Bank stood at 19,260.10 million as on

December 31,2004 as against Tk.13,152.50 million as on December 31, 2003 showing an increase of Tk.6, 107.60 million with growth rate of 46.44%.

Similarly total amount of Import business of the Bank stood at Tk.13,152.50 million as on

December 31,2003 as against Tk8,519.70 million as on December 31, 2002 showing an increase of Tk.4, 632.80 million with growth rate of 54.38%.

Import Business Figure # 4.6 :

26,781.80 30,000.00 19,260.10 20,000.00 13,152.50 8,519.70 10,000.00 4,199.70

2000 2001 2002 2003 2004

______www.AssignmentPoint.com Page 37 of 71 Source: Annual Reports of EXIM Bank

4.1.10: Operating Income :

EXIM Bank earns incremental Operating Income from its inception. The year-to-year operational income of EXIM Bank are mentioned below:

Table # 4.6 : Growth of Operating Income [BDT in Million] Particulars 2001 2002 2003 2004 2005 Operating Income 187,380.00 419,547.00 588,189.00 840,603.00 1,219,076.00

Total amount of operating Income of the Bank stood at 1,219,076.00 million as on December

31, 2005 as against Tk.840,603.00 million as on December 31, 2004 showing an increase of

Tk.378,473.00 million with growth rate of 45%.

Similarly total amount of operational income of the Bank stood at 840,603.00 million as on

December 31,2004 as against Tk.588,189.00 million as on December 31, 2003 showing an increase of Tk.252,414.00 million with growth rate of 43%.

Similarly total amount of operational income of the Bank stood at 588,189.00 million as on

December 31,2003 as against Tk.419,547.00 million as on December 31, 2002 showing an increase of Tk.168,642.00 million with growth rate of 40%.

The corresponding graphical output is given below: Figure # 4.7 : Operating Income

1219076.00 1400000.00 1200000.00 840603.00 ______1000000.00 588189.00 800000.00 www.AssignmentPoint.com 419547.00 Page 38 of 600000.00 71 187380.00 400000.00 200000.00 0.00

2000 2001 2002 2003 2004

Year Source: Annual Reports of EXIM Bank

4.1.11 : Operating Profit:

EXIM Bank earns incremental operational profit since its inception. The year-to-year operational profit of EXIM Bank are mentioned below:

Table # 4.7 : Growth of Operating Profit [BDT in Million] Particulars 2001 2002 2003 2004 2005 Operating Profit 99.67 273.85 386.80 562.66 835.80

Total amount of operational profit of the Bank stood at 835.80 million as on December

31,2005 as against Tk. 562.66 million as on December 31, 2004 showing an increase of

Tk.273.14 million with growth rate of 48.54%.

Similarly total amount of operational profit of the Bank stood at 562.66 million as on

December 31,2004 as against Tk. 386.80 million as on December 31, 2003 showing an increase of Tk.175.81 million with growth rate of 45.47%.

Similarly total amount of operational profit of the Bank stood at 386.80million as on

December 31,2003 as against Tk 273.85 million as on December 31, 2002 showing an increase of Tk.112.95 million with growth rate of 41.25%.

______www.AssignmentPoint.com Page 39 of 71 Operating Profit Figure # 4.8:

835.80 900.00 800.00 700.00 562.66 600.00 500.00 386.80 400.00 273.85 300.00 200.00 99.67 100.00 0.00 2000 2001 2002 2003 2004 Year

4.1.12 : Earning per share:

The earning per share of Export Import Bank of Bangladesh is very attractive. The Year-to- year earning per share of this Bank are mentioned below:

Table # 4.8 : Growth of Earning per share [BDT in Million] Particulars 2001 2002 2003 2004 2005 Earning per share 21.39 62.44 79.14 81.18 60.82

Source: Annual Reports of EXIM Bank The corresponding graphical output is given below:

Earning per share Figure # 4.9 :

81.18 100 79.14 62.44 60.82

50 21.39

2000 2001 2002 2003 2004

4.1.13 : Number of Branches:

______www.AssignmentPoint.com Page 40 of 71 The number of branches of Bank now stands at 24 including 5 new branches opened during the year 2005. The Year-to-year numbers of Branches of this Bank are mentioned below:

Table # 4.9 : Expansion of Branches Particulars 2001 2002 2003 2004 2005 Number of Branches 08 10 16 19 24

Number of Branches Figure # 4.10

24 30 19 16 20 8 10 10

2000 2001 2002 2003 2004

4.1.14 : Number of Employees:

The number of employees of Bank now stands at 668. The Year-to-year numbers of employees of this Bank are mentioned below:

Table # 4.10 : Number of Employees Particulars 2001 2002 2003 2004 2005 Number of Employees 237 356 520 627 768 Source: Annual Reports of EXIM Bank The corresponding graphical output is given below:

Number of Employees Figure # 4.11 :

768 900 800 627 700 520 600 356 500 400 237 300 200 100 0

2000 2001 2002 2003 2004

______www.AssignmentPoint.com Page 41 of 71 Source: Annual Reports of EXIM Bank

4.1.15 : Profit Earning Assets:

Table # 4.11 : Growth of Profit Earning Assets [Figure in crore]

Particulars 2001 2002 2003 2004 2005 Profit Earning Assets 361.37 722.85 1028.46 1639.56 1974.65

Profit Earning Assets Figure # 4.12

1974.65 1639.56 2000

1500 1028.46 722.85 1000 361.37 500

2000 2001 2002 2003 2004

4.2. Comparison of Performance of EXIM Bank and other Similar Banks

The Performance of EXIM Bank is compared with other 03(three) private commercial banks:

Southeast Bank, Mercantile Bank and Standard Bank. Ratio Analysis of Different performance indicators for the year 2005, 2004 and 2003 has been done to evaluate the performance standard of EXIM Bank Ltd.

Year – 2005:

Table # 4.12: Performance in the 2005: [In Million Taka] Sl. Indicators EXIM Southeast Mercantile Standard Bank Bank Bank Bank 1 Capital 1400 1429 1617 1179 2 Deposit 19075 27930 22385 8731

______www.AssignmentPoint.com Page 42 of 71 3 Loans & Advances 19332 22002 17669 7800 4 Operational Profit 835 808 827 515 5 Total Assets 24355 33744 24705 11070 6 Import Business 26782 20229 26325 11353 7 Export Business 22418 6761 17411 3536 8 Return on Assets 3.44% 1.00% 1.45% 2.19% 9 Earning Per Share 60.82 43.52 39.10 32.01 10 Number of Branches 24 30 25 18 11 Number of Employees 768 835 758 405 12 Percentage of classified loans 2.40% 4.96% 4.11% 0.43%

Source: Annual Reports of EXIM, Southeast, Mercantile and Standard Bank

Ratio Analysis is done as follows:

Table # 4.13: Ratio Analysis Sl. Indicators EXIM vs. EXIM vs. EXIM vs. Southeast Mercantile Standard 1 Capital 0.97 0.86 1.19 2 Deposit 0.68 0.85 2.18 3 Loans & Advances 0.88 1.09 2.48 4 Operational Profit 1.03 1.01 1.62 5 Total Assets 0.72 0.98 2.20 6 Import Business 1.32 1.02 2.35 7 Export Business 3.31 1.28 6.33 8 Return on Assets 3.44 2.37 1.57 9 Earning Per Share 1.39 1.55 1.90 10 Number of Branches 0.83 0.96 1.38 11 Number of Employees 0.92 1.01 1.66 12 Percentage of classified loans 0.48 0.58 5.58

In 2005 EXIM Bank is in better position in the area of Operational Profit, Import Business,

Export business, Return on Assets, Earning per share, Number of Branches, Number of

Employees and Percentage of Classified Loans which are the main indicators for evaluating performance of a commercial private Bank.

Meanwhile Southeast Bank and Mercantile Bank is in better position in the area of Capital,

Deposit, Loans & Advances, and Total Assets. On the other hand Standard Bank is in better position in the area of classified loans.

______www.AssignmentPoint.com Page 43 of 71 Year – 2004 :

Table # 4.14 : Performance in the year 2004: [In Million Taka]

Sl. Indicators EXIM Southeast Mercantile Standard Bank Bank Bank Bank 1 Total Capital 748 1300 1235 708 2 Total Deposit 15243 19618 16285 4101 3 Loans & Advances 12289 15548 10775 4952 4 Operational Profit 562 665 575 291 5 Total Assets 17888 23142 18324 7173 6 Import Business 19260 16270 18380 6435 7 Export Business 15124 3033 14250 2101 8 Return on Assets 3.15% 1.11% 1.18% 2.28% 9 Earning Per Share 69.20 45.38 57.88 23.00 10 Number of Branches 20 23 20 15 11 Number of Employees 627 701 625 324 12 Percentage of classified loans 2.43% 2.49% 4.12% 0.47%

Ratio Analysis is done as follows:

Table # 4.15 : Ratio Analysis

Sl. Indicators EXIM vs. EXIM vs. EXIM vs. Southeast Mercantile Standard 1 Capital 0.58 0.61 1.06 2 Deposit 0.78 0.94 3.72 3 Loans & Advances 0.79 1.14 2.48 4 Operational Profit 0.85 0.98 1.93 5 Total Assets 0.77 0.98 2.49 6 Import Business 1.18 1.05 2.99 7 Export Business 4.99 1.06 7.20 8 Return on Assets 2.84 2.67 1.38 9 Earning Per Share 1.52 1.20 3.01 10 Number of Branches 0.87 1.00 1.33 11 Number of Employees 0.89 0.81 1.62 12 Percentage of classified loans 0.98 0.59 5.17

______www.AssignmentPoint.com Page 44 of 71 In 2004, EXIM Bank is in better position in the area of Import Business, Export business,

Return on Assets, Earning per share, Number of Branches, Number of employees, classified loans which are the main indicators for evaluating performance of a commercial private

Deposit, Loans & Advances, Operational Profit and Total Assets. On the other hand

Standard Bank is better position in the area of classified loans.

Year – 2003 : Table # 4.16 : Performance in the year 2003 : [In Million Taka]

Sl. Indicators EXIM Southeast Mercantile Standard Bank Bank Bank Bank 1 Total Capital 551 970 684 321 2 Total Deposit 9945 15343 15150 4101 3 Loans & Advances 7954 13027 8896 3495 4 Operational Profit 386 492 461 121 5 Total Assets 11374 18882 16383 5274 6 Import Business 13152 12817 12190 5171 7 Export Business 10088 2263 9377 871 8 Return on Assets 3.40% 1.34% 1.57% 1.33% 9 Earning Per Share 79.14 69.85 84.24 32.46 10 Number of Branches 16 18 16 13 11 Number of Employees 520 515 495 262 12 Percentage of classified loans 0.10% 1.99% 0.42% 0.52%

Ratio Analysis is done as follows. Table # 4.17 : Ratio Analysis

Sl. Indicators EXIM vs. EXIM vs. EXIM vs. Southeast Mercantile Standard 1 Capital 0.57 0.81 1.72 2 Deposit 0.65 0.66 2.43 3 Loans & Advances 0.61 0.89 2.28 4 Operational Profit 0.78 0.84 3.19 5 Total Assets 0.60 0.69 2.16 6 Import Business 1.03 1.08 2.54 7 Export Business 4.46 1.08 11.58 ______www.AssignmentPoint.com Page 45 of 71 8 Return on Assets 2.54 2.17 2.56 9 Earning Per Share 1.13 0.94 2.44 10 Number of Branches 0.89 1.00 1.23 11 Number of Employees 1.01 1.05 1.98 12 Percentage of classified loans 0.05 0.24 0.19 In 2003, EXIM Bank is in better position in the area of Import Business, Export business,

Return on Assets, Earning per share, Number of Branches and classified loans, which are the main indicators for evaluating performance of a commercial private Bank.

Deposit, Loans & Advances, Operational Profit and Total Assets.

4.4 : Findings:

Findings have been made in the under mentioned 03 (three) ways:

a) Year to year comparisons of EXIM Bank’s performances to some

indicators

b) Comparisons with other 03(three) Private commercial Banks to some

indicators

c) Questionnaire survey

a) Year to year comparisons of EXIM Bank’s performances to some indicators:

1. Capital Structures:

In 2001 total capital of the Bank was Tk 29.67 crore which has been increased to 140.00 crore in 2005 i.e. 372% increase.

2. Deposits:

In 2001 total deposit of the Bank was Tk 393.45 crore which has been increased to 1907.81 crore in 2005 i.e. 385% increase.

3. Investment (Loans and Advances):

In 2001 total investment of the Bank was Tk 217.05 crore which has been increased to 1933.24 crore in 2005 i.e. 791% increase.

______www.AssignmentPoint.com Page 46 of 71 4. Operational Income:

In 2001 total operational income of the Bank was Tk 18.74 crore which has been increased to

121.91 crore in 2005 i.e. 550.53% increase.

5. Operating profit:

In 2001 total operational profit of the Bank was Tk9.96 crore which has been increased to

83.58 crore in 2005 i.e. 839.66% increase.

6. Import business:

In 2001 total import business of the Bank was Tk 419.97 crore which has been increased to

2678.18 crore in 2005 i.e. 538% increase.

7. Export business:

In 2001 total export business of the Bank was Tk 279.73 crore, which has been increased to

2241.84 crore in 2005 i.e. 701% increase.

8. Profit Earning assets:

In 2001 earning assets of the Bank was Tk 361.37 crore which has been increased to Tk.

1974.65 in 2005 i.e. 446% increase

9. Earning per share:

In 2001 earning per share of the Bank was Tk 21.39 which has been increased to Tk. 60.82 in

2005 i.e. 184% increase.

10. Number of Branches:

In 2001 the numbers of Branches of the Bank were 08, which have been increased to 24 in

2005 i.e. 300% increase.

11. Number of Employees:

In 2001 the numbers of employees of the Bank were 327 persons, which have been increased to 768 persons in 2005 i.e. 235% increase. ______www.AssignmentPoint.com Page 47 of 71 12. Percentage of classified loan :

In 2001, the classified loan of the Bank was nil which have been increased to 2.40% in 2005 i.e. 2.40% increase.

Table # 4.19 : Summery of Findings of Year-to-Year Comparison of EXIM Bank’s performance

Sl. Indicators Year 2001 Year 2005 Increase 1 Capital 29.67 140.00 372% 2 Deposit 393.45 1907.81 385% 3 Investment (Loans & Advances) 217.05 1933.24 791% 4 Operational Income 18.74 121.91 551% 5 Operational Profit 9.96 83.58 839% 6 Import Business 419.97 2678.18 538% 7 Export Business 279.73 2241.84 701% 8 Profit Earning Assets 361.37 1974.65 446% 9 Earning Per Share 21.39 60.82 184% 10 Number of Branches 08 24 200% 11 Number of Employees 327 768 235% 12 Percentage of Classified Loans - 2.40 2.40%

By the above statistics and information we can see that EXIM Bank has made the tremendous improvement in all financial aspects. So the Bank is financially sound and healthy.

b) Comparisons with other 03(three) Private commercial Banks to some indicators.

Year 2005:

______www.AssignmentPoint.com Page 48 of 71 In 2005 EXIM Bank is in better position in the area of operational profit, Import Business,

Export business, Return on Assets, Earning per share and classified loans which are the main indicators for evaluating performance of a commercial private Bank.

Deposit, Loans & Advances, and Total Assets and Standard Bank is in better position only in the area of classified loans.

Table # 4.20 : Comparison at a glance in the year 2005

Sl. Indicators EXIM Southeast Mercantile Standard Comparative Position Bank Bank Bank Bank P S P S P S P S 1 Capital 3rd 1 2nd 2 1st 3 4th 0 Mercantile is in position 1 2 Deposit 3rd 1 1st 3 2nd 2 4th 0 Southeast is in position 1 3 Loans & Advances 3rd 1 1st 3 2nd 2 4th 0 Southeast is in position 1 4 Operational Profit 1st 3 3rd 1 2nd 2 4th 0 EXIM is in position 1 5 Total Assets 3rd 1 1st 3 2nd 2 4th 0 Southeast is in position 1 6 Import Business 1st 3 3rd 1 2nd 2 4th 0 EXIM is in position 1 7 Export Business 1st 3 3rd 1 2nd 2 4th 0 EXIM is in position 1 8 Return on Assets 1st 3 4th 0 3rd 1 2nd 2 EXIM is in position 1 9 Earning Per Share 1st 3 2nd 2 3rd 1 4th 0 EXIM is in position 1 10 No. Of Branches 2nd 2 1st 3 2nd 2 3rd 1 Southeast is in position 1 11 N0. Of Employees 2nd 2 1st 3 3rd 1 4th 0 Southeast is in position 1 12 Classified loans 2nd 2 4th 0 3rd 1 1st 3 Standard is in position 1 Total: 25 22 21 6

(P = Position, S = Score and Score is measured as per weightage 3 for 1 st position, 2 for 2nd position, 1 for 3rd position & 0 for 4th position.)

Year 2004:

In 2004, EXIM Bank is in better position in the area of Import Business, Export business,

Return on Assets, Earning per share, Number of Branches & Number of Employees, which are the main indicators for evaluating performance of a commercial private Bank. ______www.AssignmentPoint.com Page 49 of 71 Meanwhile Southeast Bank and Mercantile Bank is in better position in the area of Capital,

Deposit, Loans & Advances, Operational Profit and Total Assets. On the other hand

Standard Bank is in better position only in the area of classified loans.

Sl. Indicators EXIM Southeast Mercantile Standard Comparative Position Bank Bank Bank Bank P S P S P S P S 1 Capital 3rd 1 1st 3 2nd 2 4th 0 Southeast is in position 1 2 Deposit 3rd 1 1st 3 2nd 2 4th 0 Southeast is in position 1 3 Loans & Advances 2nd 2 1st 3 3rd 1 4th 0 Southeast is in position 1 4 Operational Profit 3rd 1 1st 3 2nd 2 4th 0 Southeast is in position 1 5 Total Assets 3rd 1 1st 3 2nd 2 4th 0 Southeast is in position 1 6 Import Business 1st 3 3rd 1 2nd 2 4th 0 EXIM Bank is in position 1 7 Export Business 1st 3 3rd 1 2nd 2 4th 0 EXIM Bank is in position 1 8 Return on Assets 1st 3 4th 0 3rd 1 2nd 2 EXIM is in position 1 9 Earning Per Share 1st 3 3rd 1 2nd 2 4th 0 EXIM is in position 1 10 No. Of Branches 2nd 2 1st 3 2nd 2 4th 0 Southeast is in position 1 11 N0. Of Employees 2nd 2 1st 3 3rd 1 4th 0 Southeast is in position 1 12 Classified loans 2nd 2 3rd 1 4th 0 1st 3 Standard is in position 1 Total: 24 25 19 5 (P = Position, S = Score and Score is measured as per weightage 3 for 1 st position, 2 for 2nd position, 1 for 3rd position & 0 for 4th position.)

Year 2003:

In 2003, EXIM Bank is in better position in the area of Import Business, Export business,

Return on Assets, Earning per share, Number of Employees and classified loans, which are the main indicators for evaluating performance of a commercial private Bank.

Deposit, Loans & Advances, Operational Profit and Total Assets.

Sl. Indicators EXIM Southeast Mercantile Standard Comparative Position Bank Bank Bank Bank P S P S P S P S 1 Capital 3rd 1 1st 3 2nd 2 4th 0 Southeast is in position 1 2 Deposit 3rd 1 1st 3 2nd 2 4th 0 Southeast is in position 1 3 Loans & Advances 3rd 1 1st 3 2nd 2 4th 0 Southeast is in position 1 4 Operational Profit 3rd 1 1st 3 2nd 2 4th 0 Southeast is in position 1 5 Total Assets 3rd 1 1st 3 2nd 2 4th 0 Southeast is in position 1 ______www.AssignmentPoint.com Page 50 of 71 6 Import Business 1st 3 3rd 1 2nd 2 4th 0 EXIM is in position 1 7 Export Business 1st 3 3rd 1 2nd 2 4th 0 EXIM is in position 1 8 Return on Assets 1st 3 3rd 1 2nd 2 4th 0 EXIM is in position 1 9 Earning Per Share 2nd 2 3rd 1 1st 3 4th 0 Mercantile is in position 1 10 No. Of Branches 2nd 2 1st 3 2nd 2 3rd 1 Southeast is in position 1 11 N0. Of Employees 1st 3 2nd 2 3rd 1 4th 0 EXIM is in position 1 12 Classified loans 1st 3 4th 0 2nd 2 3rd 1 EXIM is in position 1 Total: 24 24 24 2

(P = Position, S = Score and Score is measured as per weightage 3 for 1 st position, 2 for 2nd position, 1 for 3rd position & 0 for 4th position.)

So it is observed that the performance of EXIM Bank is better than other 03 (three) Banks.

Because Southeast Bank has started their operation in the year 1993 and other 02 (two) Banks started their operation June-1999 and EXIM Bank has started their operation in August-1999.

So EXIM Bank is junior to other Banks.

If we look into the performance of EXIM Bank of the last 03 (three) years and other 03 (three)

Banks we can see that EXIM Bank has made tremendous success in the area of all indicators of performance evaluation like Operational Profit, Import Business, Export Business, Return on Assets, Earning per share and percentage of classified loans though it has started its

Banking operation later on and day by day it has reached near position in the rest indicators like Capital, Deposit, Loans & Advances, and Total Assets etc.

Meanwhile Southeast Bank and Mercantile were better position in some indicators like

Capital, Deposit, Loans & Advances and Total Assets but their positions are not up warding like EXIM Bank. They could not be able to keep their growth rapidly and they have achieved their growth with more deposit and Loans and Advances. On the other hand EXIM Bank has achieved their growth with less deposit and Loans & Advances. The Bank has also used less number of Branches and manpower.

So it is revealed from the findings that Export Import Bank of Bangladesh Limited (EXIM

Bank) has made their success on incremental basis. They have the consequence of upward trend of performance. At the initial stage they were behind of Southeast Bank and

Mercantile Bank at some indicators. But in 2005 they have achieved outstanding performances almost in all performance measuring indicators. ______www.AssignmentPoint.com Page 51 of 71 Summery of Findings of Bank to Bank Comparison :

The following positions of the Banks are found after analysis and comparison of various performance indicators.

Table # 4.23 : Summery of Findings of Bank to Bank Comparison

Year Sl. No. Name of the Bank 2003 2004 2005 Total Score Position hold 1. EXIM Bank Ltd. 24 24 25 73 1st 2. Southeast Bank Ltd. 24 25 22 71 2nd 3. Mercantile Bank 24 19 21 64 3rd 4. Standard Bank Ltd. 2 5 6 13 4th

______www.AssignmentPoint.com Page 52 of 71 ______www.AssignmentPoint.com Page 53 of 71 EXIM Bank has made a great success in the Banking sector for its outstanding performance since inception. As per Bangladesh Bank rating it possesses top position among all the 3rd

Generation Banks and a remarkable position among all Private Commercial Banks.

Despite tremendous success in different parts of Banking arena, EXIM Bank needs to take some initiatives for further improvement and reputation in its performance. The recommendations are mentioned below:

1.The Bank should offer facilities such as Visa Card, ATM Service to the customer to compete with other private and foreign Commercial Banks. 2.The Bank should introduce on-line banking system to compete with its competitors. 3.The Bank should launch “Consumer Investment Scheme” to attract more customers as well as to earn more profit. 4.The Bank should start more branches in the potential area of Dhaka, Chittagong and other city area in the country to make a good network all over the country. 5.The Bank should introduce more promotional programs to promote its products and services to the people. 6.The Investment (Loan & advances) sanction process should be easier so that the customers can feel convenient to take investment from the bank. 7.The Bank Authority should always be aware of its quality service because banking is a service-oriented business. 8.The Bank should patronize the small and medium level entrepreneurs for small & medium level industrialization. 9.The Bank should hunt low cost deposit from the depositor to provide borrowing customers reduced profit rate. 10. The Bank should train its all officers and executives to provide quick and quality service to the customers. 11. The Bank should introduce special scheme for their corporate customer or service holders like doctors, engineers, lawyers, teachers and other professionals. 12. The Bank should be careful to choose its borrowing customer to avoid Classified Investment (Loans & Advances).

______www.AssignmentPoint.com Page 54 of 71 ______www.AssignmentPoint.com Page 55 of 71 Performance means doing a job effectively and efficiently. Performance Evaluation System means a mechanism for improving the likelihood of the organization successfully implementing its strategy. It is a process to have the goal of strategy implementation. In this process senior management selects a series of measures that best represent the organization’s strategy.

The current report has been aimed at critically examining the Performance of a private commercial bank. The main objective of this report is to evaluate the overall performance of

Export Import Bank of Bangladesh Ltd along with how efficiently the Bank is providing services to its customer. With this objective a comparative study was also done with the performances of EXIM Bank and other 03 (three) contemporary private commercial Banks.

After analyzing in details of the performances a comprehensive recommendations have been made to overcome the limitations of EXIM Bank’s performances.

This paper used both primary and secondary data. To know the common feeling a questionnaire was used and total hundred employees have given their opinion through the questionnaire. After analyzing all available data it was observed that EXIM Bank is in better position in all respects.

Despite hard competition among banks operating in Bangladesh, both local and international, EXIM Bank has made tremendous and remarkable progress practically in

______www.AssignmentPoint.com Page 56 of 71 every sphere of its activities. The bank is maintaining its position as one of the leading new generation private Banks in the country both in terms of capital base and good governance.

This bank has been able to continue its overall progress. This success has been made possible due to dynamic leadership of its management as well as devotion and sincerity of all categories of officers and executives.

Another recent development is that EXIM Bank has already initiated its IPO (Initial Public

Offer) and has been enlisted in Dhaka & Chittagong Stock Exchange.

______www.AssignmentPoint.com Page 57 of 71 Appendix - A

Performance of EXIM Bank at a glance:

[BDT in Million] Particulars 2002 2003 2004 2005

Authorized Capital 1,000.00 1,000.00 1,000.00 1000.00

Paid- Up- Capital 225.00 253.12 313.88 627.75

Shareholders’ equity 407.25 551.33 748.27 1,400.00

Reserve Fund 119.60 229.50 300.50 357.32

Deposit 7,255.02 9,955.23 15,242.97 19,078.17

Investment (Loans & Advances) 5,131.55 9,945.23 12,289.12 19,332.44

Investment 829.10 1,419.00 2,377.07 1,542.98

Foreign Exchange Business 15,961.90 23,240.80 34,384.61 49,200.20

Income 419.54 588.19 840.60 1,219.07

______www.AssignmentPoint.com Page 58 of 71 Expenditure 145.69 201.39 277.94 383.27

Operating Profit 273.85 386.80 562.66 835.80

Total Asset 8,035.33 11,374.70 17,888.66 24,358.12

Earning Per Share 62.44% 64.14% 69.20% 81.18%

Loan as a % of total deposit 70.65% 79.89% 80.62% 92.68%

No of Foreign Correspondents 175 178 180 192

Appendix - B Board of Directors of EXIM Bank:

BOARD OF DIRECTORS

Chairman : Md. Nazrul Islam Mazumder

Directors :

 Mr. Md. Nazrul Islam Swapan

 Mr. Md. Altaf Hossain

______www.AssignmentPoint.com Page 59 of 71  Mr. Md. Faiz Ullah

 Mrs. Nasima Akhter

 Engr. Mr. Md. Aminur Rahman Khan

 Mr. A.K.M. Nurul Fazal Bulbul

 Mr. Md. Zubayer Kabir

 Mrs. Rizwana K. Riza

 Mr. Md. Habibullah

 Mr. Md. Nur Hussain

 Mr. Anjan Kumar Saha

 Mr. Md. Abdul Mannan

 Mohammed Lakiotullah (Managing Director)

Appendix -C

Executive Committee of EXIM Bank

EXECUTIVE COMMITTEE

Chairman : Mr. Md. Nazrul Islam Mazumder

Directors :

______www.AssignmentPoint.com Page 60 of 71  Mr.Md. Nazrul Islam Swapan

 Mr.Md. Altaf Hossain

 Mrs. Nasima Akhter

 Mr. A.K.M. Nurul Fazal Bulbul

 Mr.Md. Zubayer Kabir

 Mr.Md. Nur Hussain

 Mr. Anjan Kumar Saha

 Engr. Aminur Rahman Khan

 Mr. Md. Abdul Mannan

 Mohammed Lakiotullah

Appendix –D

Management of EXIM Bank at a glance:

MANAGEMENT OF EXIM BANK:

Mr. Mohammed Lakiotullah Managing Director

______www.AssignmentPoint.com Page 61 of 71 Mr. Ekramul Hoque Deputy Managing Director

Mr. Md. Sirajul Islam Bhuiyan Deputy Managing Director

Name Designation Place of Posting

Mr. Mohammed Haider Ali Miah (MBA) EVP RMG Division, Head office, Dhaka

Mr. Mohammad Karimuzzaman EVP Audit & Inspection Division, Head Office,

Mr. Md. Akhtar Hossain SVP Investment Division, Head Office

Mr. Khondoker Rumy Ehsanul SVP Uttara Branch, Dhaka Haq

Mr.Md. Fazlur Rahaman SVP Narayangonj Branch, Dhaka

Mr. Fazal Akhter SVP Gulshan Branch, Dhaka

Mr. Md. Shahjahan Shiraj SVP Panthapath Branch, Dhaka

Mr. Sirajul Haque Miah SVP Motijheel Branch, Dhaka

Mr. Md. Zakaria Faruq SVP Nawabpur Branch, Dhaka

Mr. Mohd. Alamgir SVP Agrabad Branch, Chittagong

Mr. Md. Golam Mahbub SVP Board Secretariat, Head Office

Mr. Khondoker Nayeemul VP Mirpur Branch, Dhaka Kabir

Mr. Md. Feroz Hossain VP Motijheel Branch, Dhaka

Financial Administration Division, Mr. Md. Humayun Kabir VP Head Office

______www.AssignmentPoint.com Page 62 of 71 Name Designation Place of Posting

Human Resources Division, Head Mr. Shah Md. Abdul Bari VP Office

Mr. Shaikh Bashirul Islam VP International Division, Head Office

Mr. Md. Muhibbul Abrar VP Jublee Road Branch, Chittagong Choudhury

Mr. Shahidur Rahman VP Motijheel Branch, Dhaka

Mr. Sheik Moyeen Uddin VP Motijheel Branch, Dhaka

Mr. Md Shahid Ullah VP Khatungonj Branch, Chittagong

Mr. Md. Muniruzzaman VP Rajuk Avenue, Dhaka

Mr. Muniruzzaman Chowdhury VP EXIM Bank Training Institute (EBTI)

Mr. Md. Anisul Alam SAVP Gulshan Branch,Dhaka.

Engr. Shamsur Rahman Chow., SAVP IT Division, Head Office.

Mr.Khorshed Alam Chowdhury SAVP New Eskaton Branch, Dhaka

Mr. Md. Zoshim Uddin Bhuiyan SAVP Rajuk Avenue Branch, Dhaka

Mr. Md. Abduz Zaher SAVP Imamganj Branch, Dhaka

Mr. S.M. Abu Zaker SAVP Khatungonj Branch, Chittagong

Mr. Abu Hena Md. Mohsin SAVP Financial Administration Division, Head Office.

Mr. Md. Moidul Islam SAVP Motijheel Branch, Dhaka

Mr. Md. Mosharraf Hossain Audit & Inspection Division, Head SAVP Mazumder Office.

Mr. Mohammad Hanif SAVP Agrabad Branch, Chittagong

Mr. Nasir Uddin Ahmed SAVP International Division, Dhaka ______www.AssignmentPoint.com Page 63 of 71 Name Designation Place of Posting

Mr. Mozaffar Hossain AVP Bogra Branch,Bogra

Mr. Sakhawat Hossain AVP Jessore Branch, Jessore

Mr. Abdul Jabbar Chowdhury AVP Gazipur Branch, Gazipur

Mr. Tariqul islam Chowdhury AVP Rajuk Avenue Branch, Dhaka

Appendix - E ______www.AssignmentPoint.com Page 64 of 71 Organizational Structure

Organizational Structure

Managing Director

Deputy Managing Director Deputy Managing Director Deputy Managing Director

Sr. Vice President Vice President Vice President Sr. Asstt. Vice President Vice President Sr. Asstt. Vice President

Officer Staff Officer Staff Officer Staff Officer Staff Officer Staff Officer Staff

______www.AssignmentPoint.com Page 65 of 71 Appendix - F

Loans & Advances of all private commercial Banks from the year 2001 to 2005

[Amounts in million Taka] SL Banks 2001 2002 2003 2004 2005 2005

1 Pubali Bank 21572 23583 26193 26283 27540 29300

2 Uttara Bank 22307 24187 22938 18786 18600 14500

3 Arab Bangladesh Bank 12682 14862 19477 20252 17000 27000

4 National Bank 18555 20201 21678 22257 22840 27000

5 City Bank 9965 12729 16885 14779 17030 23330

6 Islami Bank 27437 35238 46281 59007 83920 102150

7 IFIC Bank 16234 17053 19503 20450 21280 21710

8 UCBL 9444 10942 11826 14396 15380 20210

9 Oriental Bank 8760 9716 11704 16071 17260 18250

10 Eastern Bank 8141 9946 10891 11288 14970 17780

11 NCC Bank 7965 10789 13148 12850 15210 18350

12 Prime Bank 7668 9075 12686 16492 23220 31500

13 Southeast Bank 7062 9178 13027 15548 22001 32500

14 Dhaka Bank 5415 9944 11211 12887 16540 23350

15 Al Arafah Bank 3728 3875 5289 7572 8140 9150

16 SIBL 3523 5499 7504 10059 12870 14000

17 Dutch-Bangla Bank 4588 8044 9391 11432 14980 20130

______www.AssignmentPoint.com Page 66 of 71 SL Banks 2001 2002 2003 2004 2005 2005

18 Mercantile Bank 3913 6707 8896 10776 17670 21850

19 Standard Bank 752 2365 3495 4952 7800 10150

20 One Bank 1630 4392 5126 6367 9610 13850

21 EXIM Bank 2171 5133 7955 12289 19332 25650

22 BCBL 1311 1931 1700 2911 3170 4500

23 Mutual Trust Bank 602 1910 3437 5904 11690 14370

24 First security Bank 868 2540 4103 6477 8500 9000

25 Premier Bank 1089 2058 4281 8096 15370 18100

26 Bank Asia 1114 3012 5449 8190 11860 17800

27 Trust Bank 526 1603 1898 4358 N/A N/A

28 Shahjalal Bank N/A 217 2002 4319 7190 10620

29 Jamuna Bank N/A 349 1514 3240 6750 11000

30 BRAC Bank N/A 70 1030 2870 5820 11250

Total 248450 310649 381414 457728

N/A = Not Available

Sources: "Resume of Financial Institutions" Published by Ministry of Finance & The City Bank Ltd.

______www.AssignmentPoint.com Page 67 of 71 Appendix - G Operational profit of private commercial Banks in the year 2005 and 2005 [Fig in crore]

Profit Position as per Profit No. of Sl. Name of the Bank December December December December Branch Remarks 2005 2005 2005 2005 Dec' 05 1 Uttara Bank 120.97 155.00 1st 1st 198 2 Pubali Bank 62.49 150.00 2nd 2nd 350 3 AB Bank 36.01 120.40 8th 3rd 76 4 National Bank 73.52 120.00 6th 5th 76 5 Islami Bank 293.00 290.00 1st 1st 169 1st 6 IFIC Bank 78.00 72.00 5th 8th 65 Generation Bank 7 UCBL 85.72 120.24 4th 4th 80 8 Oriental Bank 25.00 N/A 9th - N/A 9 Eastern Bank 89.24 107.00 3rd 6th 22 10 NCC Bank 72.05 102.00 7th 7th 41 11 City Bank 92.21 132.20 2nd 2nd 77 12 Prime Bank 114.62 167.00 1st 1st 41 13 Southeast Bank 80.87 154.00 2nd 2nd 31 14 Dhaka Bank 74.68 101.92 3rd 3rd 29 2nd Generation 15 Al-Arafah Bank 37.00 60.00 6th 5th N/A Bank 16 Social Investment Bank 42.00 21.00 5th 6th 24 17 Dutch Bangla Bank 63.24 100.85 4th 4th 28 18 Merchantile Bank 82.18 103.63 3rd 2nd 28 3rd Generation 19 Standard Bank 49.00 63.00 6th 6th 22 Bank 20 EXIM Bank 83.58 120.00 2nd 1st 28 21 Bank Asia 65.87 82.53 4th 4th 19 22 Premier Bank 93.00 90.10 1st 3rd 21

______www.AssignmentPoint.com Page 68 of 71 23 One Bank 34.82 61.00 8th 7th 18 24 Mutual Trust Bank 50.69 66.76 5th 5th 20 25 B. Commerce Bank 9.02 11.60 9th 9th 25 26 First Security Bank 38.37 13.50 7th 8th 12 27 Trust Bank N/A N/A - - N/A 28 Shahjalal Bank 12.00 51.00 3rd 2nd 16 4th 29 Jamuna Bank 32.00 44.00 2nd 3rd 23 Generation Bank 30 BRAC Bank 35.00 60.00 1st 1st 13

Sources: The City Bank Ltd. and the National Dailies.

______www.AssignmentPoint.com Page 69 of 71 1. Akkas M.A (October-2002), Readings in Management, Vol.–1, Department of Management Studies, University of Dhaka. 2. Ali M. H (2001), A Hand Book of Islamic Banking and Foreign Exchange Operation, 3rd edition, Dhaka. 3. Bhattacharjee, D. and Kumar, S. Saha (1989), “An Evaluation of Performance of NCBs in Bangladesh”, Bank Parikrama, Volume – XIV 4. Chakma P.B, Islam M.S, Karmaker S.S (December 1995), Managerial Performace of Islamic Bank: A Critical Review, Journal of Business Studies, Dhaka University, Volume- XVI No.2.

5. Chowdhury L R (2003), A Text Book on Banker’s Advances,2nd edition, Fair Corporation, Dhaka.

6. Devnath, R.M (2004), “Bangalir Bank Babyasha”, 1st edition, Nabajug Paokashani, Dhaka

7. Dessler Gary (2004), Human Resource Management, 9th Edition, Prentice Hall Inc.

8. Hena.M.A (2003), Influence of Environment and surroundings in marketing of Bank services, 2nd edition, Pearson Education Pte. Ltd, Delhi, India. 9. Hussain M.M (2003), General Banking Principles: Theory and Application, 1st edition, Shatapadi Prakashani, Dhaka.

______www.AssignmentPoint.com Page 70 of 71 10. Islam M.S, Chakma P.B, Karmaker S.S (June 1995), Managerial Performance of Grameen Bank, Journal of Business Studies, Dhaka University, Volume-XVI, No.1. 11. Khan M Y and Jain P K (2004), Financial Management, 3rd Edition, Tata McGraw- Hill, New Delhi, India. 12. Rose P.S. (2005-2005), Commercial Bank Management, 5th edition, McGrawhill Irwin, New York, USA.