Chapter 4:

Performance Analysis of Credit Department of

Prime Bank Ltd.
4.1 Loan Disbursement

Table - 4.2 Loan Disbursement of Prime Bank Limited from 2013 to 2017.

Year 2017 2016 2015 2014 2013

Advances 198,323 170,211 151,865 147,367 153,589
Growth 17% 12% 3% -4%

Figure-4.2: Graphical presentation of loan disbursement during 2013-2017

Advances

198,323
170,211
151,865 147,367 153,589

2017 2016 2015 2014 2013

The figure-4.2 shows that, year wise disbursement of this bank increases during
(2013-2017) periods. In 2017 the growth rate increased to 17% from 12% in 2016.
Between 2013 and 2017, about Tk. 44734 million increases in loan disbursement.

4.2 Loan vs. Deposit

Table -4.3 Loan deposit ratio of Prime Bank Limited 2013 to 2017

Year 2017 2016 2015 2014 2013

Deposits 199,014 197,934 194,825 204,838 201,907
Advances 198,323 170,211 151,865 147,367 153,589
AD Ratio 100% 86% 78% 72% 76%
Source: Financial Statements
Figure-4.3: Graphical presentation of loan deposit during 2013-2017

AD RATIO

100%

86%

78%

76%
72%
2017 2016 2015 2014 2013

The figure-4.3 shows that, the loan vs. deposit ratio increases sharply during last
three years. In 2017 the ratio was 100% compared to 76% in 2013.

4.4 Segment wise Disbursement

Due to centralization of business model, the lending business of Prime Bank are
segmented as below

Corporate and Institutional Banking Corporate House with Annual turnover

(CniB) more than BDT 8000 million
Commercial Banking Business with annual turnover ranges
from BDT 1000 million to BDT 8000
million.
Medium, Small and Micro Enterprise Business upto annual turnover of BDT
1000 million
Retail Lending to individuals other than
business.
Table – 4.4 Segment wise disbursement by Prime Bank Limited

Source: Financial Statements

Figure-4.4: Graphical presentation of segment wise disbursement during -2017

Consumer Loan and Advance

Banking Division
10%
MSME
11%

Corporate &
Institutional
Banking
54%
Commercial
Banking Division
25%

The figure-4.4 shows that, the disbursement in MSME increases gradually during
(2015-2017) periods. In 2017 the disbursement in MSME was the highest. The
disbursement in retail remains higher during (2015-2017) than MSME.
4.5 Product wise Loan and Advance
Table – 4.5 Product wise Loan and Advance by PBL, Fatikchari Br. in 2017

[BDT in Lac]
Investment Investment Percentage (%)
Amount in lac of Total
Disbursement

SME
House Building Loan (Commercial) 170.53 19.2%
CC (Hypo) – SME 5.38 0.6%
LG-SME 13.04 1.5%
Prime Subidha 23.96 2.7%
SOD(FO)-SME Total 27.19 3.1%
Time Loan-SME 0

Retail
Abash Loan 8.36 0.9%
Any purpose Loan 51.45 5.8%
Car Loan 45.29 5.1%
Personal Loan 231.06 26.0%
SOD(FO)-Retail 239.54 27.0%
Staff Consumer 16.56 1.9%
Swapna Neer 55.32 6.2%
LG-Agri Abad 0.50 0.1%
Source: Financial Statements
Figure-4.5.1: Graphical presentation of loan disbursement (MSME) in 2017

Investment in SME for 2017

SOD(FO)-SME 3.10%

Prime Subidha 2.70%

LG-SME 1.50%

CC (Hypo) – SME 0.60%

House Building Loan
19.20%
(Commercial)
% of total investment

The figure-4.5.1 shows that, the disbursement in MSME segment during 2017. In
2017 the highest disbursement was in House Building loan.
Figure-4.5.2: Graphical presentation of loan disbursement (Retail) in 2017

Investment in Retail for 2017

LG-Agri Abad 0.10%

Swapna Neer 6.20%
Staff Consumer 1.90%
SOD(FO)-Retail 27%
Personal Loan 26%
Car Loan 5.10%
Any purpose Loan 5.80%
Abash Loan 0.90%
% of total investment

The figure-4.5.2 shows that, the disbursement in retail segment during 2017. In
2017 the highest disbursement was in SOD (FO) and Personal Loan.
4.6 Rate of Interest
Table – 4.6 Rate of interest charged by Prime Bank Limited 2013-2017

2013 2014 2015 2016 2017

Range 16% - 20% 15% - 19% 14% - 18% 11% – 15% 9.5% - 13.5%
Average 18% 17% 16% 13% 11.5%
Source: Financial Statements
Figure-4.6: Graphical presentation of deposit collection during 2013-2017

Average rate of interest

18% 17% 16% 13% 11.50%
interest
Rate of

2013 2014 2015 2016 2017

The figure-4.6 shows that, the average rate of interest decreases gradually during
(2013-2017) periods.

4. 7 Loan Sanction and Recovery

Table – 4.7 Rate of recovery against sanction of Prime Bank Limited. from 2013-2017
[BDT in Lac]
Year 2013 2014 2015 2016 2017
Sanction 672 687 682 711 888
Recovery 13% 15% 16% 25% 19%
Source: Financial Statements

Figure-4.7: Graphical presentation of deposit collection during 2013-2017

Recovery
25%
Rate of recovery (%)

19%
15% 16%
13%

2013 2014 2015 2016 2017

The figure-4.7 shows that, the year wise recovery against sanction increases
gradually during (2013-2017) periods which shows a positive sign of the recovery
position. In 2016 the recovery was 25% compared to 19% in 2015 due to major
repayment made by a NPL in 2016.

4.8 Classified Loans and Advance

Table – 4.8.1 Classified loans and advance of Prime Bank Limited. from 2013-2017

BDT million
Year 2017 2016 2015 2014 2013
Non-performing 10,799 10,139 11,883 11,215 7,815
loans (NPLs)
Source: Financial Statements

Figure-4.8: Graphical presentation of classified loans and advances during 2013-2017

Non-performing loans (NPLs)

11,883
10,799 11,215
10,139

7,815

2017 2016 2015 2014 2013

The figure-4.8 shows that, the year wise classified loans and advance during (2013-
2017) periods. As the total loans and advance is increased, the classified loans is gradually
increased over the years. Due to fall in business the classified loans was increased. At the
end of the year 2017 it was increased to 22.42 lac.
Table – 4.8.2 Classified investment position of Prime Bank Limited in 2017, 2016.

Source: Financial Statements

4. 9 Profit of Prime Bank Limited
Table – 4.9 Profit made by Prime Bank Limited from 2013 to 2017

In BDT million
Year 2017 2016 2015 2014 2013
Profit 1,059 2,195 2,139 2,393 1,829
after tax

Source: Financial Statements

Figure-4.9: Graphical presentation of profit made during 2013-2017

Profit after tax

2,393
2,195 2,139
1,829

1,059

2017 2016 2015 2014 2013

The figure-4.9 shows that, the year was profit made by Prime Bank Limited. The
profit was decreased to 50.6% in 2014 compared to 2013. Profit decreases gradually
during 2014-2017 periods.