Internship Report On BRAC Bank Limited Financial Performance Analysis of BRAC Bank LTD

Internship Report on BRAC Bank Limited
Financial Performance Analysis of BRAC Bank Ltd.
Submitted To
Mohammad Fahad Noor
Lecturer, Department of Finance.
School of Business
Independent University, Bangladesh (IUB)
Submitted By
Name: Showkatul Islam
ID: 1521865
Course ID: BBA 499A
Section: 01
Date of Submission: 24th July 2019

Letter of Transmittal
24th July 2019
Mohammad Fahad Noor
Lecturer, Department of Finance.
School of Business
Independent University, Bangladesh (IUB)
Subject: Submission of Internship report on “Financial Performance Analysis of BRAC Bank

Ltd”.
Dear Sir,
It gives me massive pleasure in preparing this report that was assigned in fulfillment of my internship
requirement. This paper has been valuable to me as it contains the reflection of my working experience
in Brac Bank Limited, Head Office, for three months’ period of my internship. In this report, I have
given my best to illustrate the experiences and knowledge I gained from this internship period.
I would like to mention that I am extremely grateful to you for your valuable assistance, extreme
understanding effort and constant attention as and when required in accomplishing the paper
Therefore, I pray and hope that you would be kind enough to accept my Internship Report and oblige
thereby. I would be glad to furnish you with any clarification if required.
Sincerely yours
Showkatul Islam
ID 1521865
Independent University, Bangladesh
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Acknowledgement
First of all, I would like to express my gratefulness and harmony to the Almighty Allah giving me the
understanding and qualifying me to complete the internship report successfully on time. It is a great
pleasure to take this opportunity to thank some people who have encouraged, directed and supported
me throughout the internship program.
Secondly, I would like to show my gratitude to my supervisor Mohammad Fahad Noor Sir for helping
me and guiding me for preparing my internship report also, I would like to express my gratefulness to
MR. Anwar Jahid, Head of Deposit Origination, in the Accounts Service Division, Rubel Kanti Barua,
Associate Manager, Deposit Origination and others employees for giving me the opportunity to work
at Brac Bank LTD. Without their help and support, I couldn’t complete my internship program
successfully.
At last, I would like to thank my team members and colleagues, who are not only helping me for
preparing this report but also share their knowledge and ideas about corporate life.
Finally, my sincere thankfulness goes to Independent University, Bangladesh authority for arranging
this internship program for students. It really makes student capable of doing official tasks before
entering the corporate world. I really enjoyed every bit of time.
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Executive Summary
The Banking sector is always measured as one of the most important sectors for the economy. In this
period, in order to achieve development in industrial and commercial sector, there should be an
inclusive banking system to support not only the economy but also the culture. The main focus of this
report is on the financial performance analysis of Brac Bank and compare with peer group (Bank Asia.
Jamuna Bank. Prime Bank and Mutual Trust Bank (MTB)). I have analyzed some ratios from different
group with comparison of Brac Bank limited and its peer group
First chapter is mainly about the Banks history, companies’ profile, mission, vision, objectives,
departments & product and services of the bank.
Second chapter is all about the internship experience, job responsibility during the internship period
and the functions of the department.
Third chapter is the main chapter and it is about the industry overview, competitor’s analysis and
financial analysis of the competitors. In this part, I tried to analyze the competitor’s performance with
Brac Bank Limited’s performance.
In the last chapter, chapter four, I gave a conclusion where I described about my internship and gave
an implication which I could apply in future.
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Table of Contents
Letter of Transmittal ...................................................................................................................... ii
Acknowledgement ........................................................................................................................... iii
Executive Summary ....................................................................................................................... iv
Introduction .................................................................................................................................... 6
1.1 Company Profile................................................................................................................... 6
1.1.1Vision, Mission, Core Value, ............................................................................................... 8
1.1.2 Corporate Division/Department ........................................................................................ 9
1.1.3 Details of the Services ....................................................................................................... 11
1.1.4 BRAC Bank subsidiaries .................................................................................................. 14
1.1.5 Corporate Social Responsibility ....................................................................................... 15
1.1.6 Operation details .............................................................................................................. 16
Chapter 2 ....................................................................................................................................... 18
2.1 Job Responsibilities ............................................................................................................. 18
2.2 Functions of the Department .............................................................................................. 19
Chapter 3 ....................................................................................................................................... 20
3.1 Analysis of industry ............................................................................................................. 20
3.2 PEER GROUP/ MAIN COMPETITORS .......................................................................... 22
3.2.1 JUSTIFICATION FOR THE SELECTED COMPETITORS ....................................... 23
3.3.1 Return on Asset: ............................................................................................................... 24
3.3.2 Return on Equity .............................................................................................................. 25
3.3.4 CASH RATIO .................................................................................................................. 27
3.3.5 Debt to Equity Ratio ......................................................................................................... 28
3.3.6 Leverage Ratio .................................................................................................................. 29
3.3.7 Capital Adequacy Ratio ................................................................................................... 30
3.3.8 Tier 1 Capital Ratio .......................................................................................................... 31
3.3.9 Tier 2 Capital Ratio .......................................................................................................... 32
3.3.10 Net interest Margin (NIM) ............................................................................................. 33
Recommendation ............................................................................................................................ 34
Conclusion ...................................................................................................................................... 35
References ...................................................................................................................................... 36
Appendix ........................................................................................................................................ 37
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Chapter 1
Introduction
1.1 Company Profile
BRAC Bank Limited is a scheduled commercial bank in Bangladesh. It was established in under the
Banking Companies Act, 1991 and incorporated as a private limited company as on May 20, 1999
under the Company Act, 1994. The Bank has started its operations from July 04, 2001. The Chairman
of the Bank is Sir Fazle Hasan Abed, KCMG. Now the Managing Director & CEO of the bank is Mr.
Selim R.F Hussain the bank has made a reasonable progress due to its visionary management people
and its appropriate policy and implementation. BRAC Bank is a commercial scheduled bank spreading
full range of banking facilities as per the directions of Bangladesh bank.
BRAC Bank Limited began with the vision to provide banking solutions to the ‘unbanked’ Small and
Medium Entrepreneurs. Taking inspiration from its mother organization BRAC, the largest NGO in
the world, BRAC Bank introduced small ticket loans to the small and medium enterprises (SME), to
specifically bring the mass entrepreneurs under the umbrella of formal banking service. About half of
BRAC Bank’s lending portfolio comprises of small and medium enterprises – popularly known as the
‘SME’.
In 2001 BRAC Bank did not start its journey like any other conventional bank. The visionaries who
led the bank realized that the previously neglected Small and Medium Enterprises (SME) sector plays
significant role in generating growth and creating employment in the country. Over the past few
decades, traditional banks were reluctant to invest in this sector. At a time when it was almost
impossible for the SME entrepreneurs to get financing from the banking sector in Bangladesh, BRAC
Bank stepped forward and came to finance these unbanked SME entrepreneurs.
BRAC Bank is a performance driven dynamic organization, where its values founded at the core of
each and every activity as pillars. It is the only member of the Global Alliance for Banking on Values
(GABV) from Bangladesh. The Global Alliance comprises of 48 (as of May 2018) financial
institutions operating in countries across Asia, Africa, Australia, Latin America, North America and
Europe - serving more than 41 million customers, holding up to USD 127 billion of combined assets
under management and powered by a network of 48,000 co-workers.
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BRAC Bank shares the 3P Philosophy – People, Planet and Profit with the other partners of GABV.
BRAC Bank believe that they have responsibility towards the people with whom they work with and
the places they operate in. As a mission-driven bank, they prefer to work for the welfare of the people
and society.
 Member of Global Alliance for Banking on Values (GABV) Achievement:
Brac bank limited is the member of The Global Alliance for Banking on Values (GABV) is a
membership Organization, made up of eleven of the world's leading sustainable banks, founded by
BRAC Bank in Bangladesh, Shore Bank in the US, and Triodes Bank in the Netherlands, the bank's
Members have to meet three criteria:
 They are independent and licensed banks with a focus on retail customers
 With a minimum balance sheet of $50 million;
Most significantly, they should be committed to social banking and the triple bottom line of People,
planet and profit. Their main purpose is to develop economically interdependent and Responsible to
current and future generations.
 Slogan:
The slogan of BRAC Bank is “Aastha Obichol”. These two words are Bengali words that denote
enormous trust on the organization.
BRAC Bank Limited Company’s slogan is “Aastha Obichol”. It promises trustworthiness as well as
being the “Dependable Friend in Banking” will hold true for years to come.
 Logo:
The logo of BRAC Bank has been readied remembering the objective of the association. The
square structure of the logo implies strong and solid. The Brilliant Shading in the lower
segment of the logo implies that 'Brilliant Bangladesh and her rich land'. The Blue shading in
the upper segment signifies 'the sky with tremendous and boundless chance'. The white hued
bend signifies 'Development and Advancement'. White circles in the blue shading mean the
blazing sun that offers light to all over the place
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 Corporate Culture
Bank has adopted trust as a corporate value which is acronym for team work, respect for all people,
unquestionable integrity, excellence in everything BRAC Bank of SME do, Sense of urgency in
getting things done and total commitment. All employees are expected to conduct themselves in
accordance with the rules and regulations of the bank
Corporate Goals
 To be the absolute market leader in the SME loan.

 To be world class organization, in term of service quality and establishing relationship.
 To be the model bank in the world.
1.1.1Vision, Mission, Core Value,
 Corporate Vision
BRAC Bank will be a socially responsible organization that will not lend to businesses that have a
unfavorable impact on the environment and people. So BRAC Bank operates following a specific
vision like: Building a profitable and socially responsible financial institution focused on markets
and business with growth potential, thereby assisting BRAC and stakeholders build a “just,
enlightened, healthy, autonomous and scarcity free Bangladesh"
 Corporate Mission:
BRAC Bank will follow to highly professional and ethical business principles and internationally
acceptable banking and accounting standards. The missions of the organization are:
 Sustainable growth in Small & Medium Enterprise sector.

 Continuous low-cost deposit Growth with controlled growth in retail asset
 Corporate Assets to be funded through self-liability mobilization
 Growth in Assets through syndications and investment in faster growing sectors
 Continuous endeavor to increase non-funded income
 Keep our debt charges at 2% to maintain a steady profitable growth
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 Achieve efficient synergies between the bank’s branches, SME unit offices and BRAC field
offices for delivery of remittance and the bank’s other products and services
 Manage various lines of business in a full controlled environment with no compromise
compliance and on service quality
 Keep a diverse, far flung team fully motivated and driven towards materializing the bank’s
vision into reality.
 Core Values:
BRAC Bank’s Strength emanates from its mother company-BRAC. This means, we will hold the
following values and will be guided by BRAC
 Value the fact that customers are the member of the BRAC family
 Creating an honest, open and friendly environment
 Have a strong customer focus and build relationships based on integrity, superior service
and mutual benefit.
 Strive for profit & sound growth
 Work as a team to serve the best interest of its owners
 Relentless in pursuit of business innovation and improvement
 Value and respect people and make decisions based on merit
 Base recognition and reward on performance
 Responsible, trustworthy and law-abiding in all that the organization does.
1.1.2 Corporate Division/Department
BRAC Bank Limited is made up of four major divisions, namely:
1. Corporate Banking Division

2. Retail Banking Division
3. Small and Medium Enterprise (SME)
4. Foreign Trade & Treasury
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1. Corporate Banking Division:
Corporate Division provides full range of commercial banking products and services to any
potential corporate clients including multinationals, large or medium local corporate, NGOs,
institutional bodies. The Corporate Banking Division has a centralized structure through on-line
banking system. Any credit facility is processed at the Corporate Banking Division, Head office.
After sanctioning of the facility, the limit is put on line and the customer can enjoy the facility from
any of the BRAC Bank branches. Strict adherence to internal control guidelines and other legal
and statutory compliance are followed. The Credit approval process involves separate Credit
Division, the Managing Director and finally the Board. Other departments like Foreign Trade,
Treasury, and Credit Administration etc. play the support role for a comprehensive range of service
to the Corporate Banking Division
2. Retail Banking Division:
Retail Division offers a wide array of lucrative and competitive banking products to the individual
customers of the bank. Currently there are six lending products and a number of other attractive
new products will be launched shortly. It also offers different types of term deposit scheme and
attractive STD & Savings deposit schemes giving interest on daily balance.
3. Small and Medium Enterprise (SME):
SME is an additional and specialized horizon of the bank which serves the bank’s special focus in
promoting broad based participation by catering to the small and medium entrepreneur. The
network of SME has already been established throughout Bangladesh. The SME market in
Bangladesh is large. BRAC Bank is the absolute market leader in the number of loans given to
small & medium enterprises throughout Bangladesh. The Bank disburses almost BDT 700crore of
their loan to the SME unit SME unit is dealing with small scale loan which is known as
“ANONNO”
4. Foreign Trade & Treasury:
Treasury Division is one of the major divisions of BRAC Bank. Treasury Division deals with
money market all treasury related products are processed in conformity with the Bank’s
Operational, Trading, Money market, Overnight, Term placing, Deal settlement, Commercial
position keeping, Treasury, Credit, Finance & other applicable policies. Treasury Operations
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calculates investment figure, prepares the auction application, forwards the application to
Bangladesh Bank for Bid and Treasury Operations maintains and reconciles all accounts with
foreign and local banks.
1.1.3 Details of the Services

 Corporate products and services
Figure 2 Corporate product & services
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Retail products and services
Figure 3 Retail product & services
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 SME products and Services
BRAC Bank is offering the following SME loan product and deposit products to the client for financing
different purpose that fulfill the requirements of the bank and have good return to the investment as
well as satisfy the client. The products of SME banking are:
Figure 4 SME product & services
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1.1.4 BRAC Bank subsidiaries
Brac bank limited have four subsidiaries:
B-Kash Limited was established to money transfer service in Bangladesh.

The Bank has obtained licenses from Bangladesh Bank for rending such service.
BRAC EPL Stock Brokerage Limited was established to provide

the stock brokerage business in Bangladesh. It has corporate membership of Dhaka Stock Exchange
and Chittagong Stock Exchange.
BRAC EPL Investment Limited delivers a complete range of

Investment Banking services with established merchant banking activities such as Issue Management,
Corporate Advisory, Corporate Finance, Underwriting and Portfolio Management.
BRAC Saajan exchange Limited an Exchange Company

incorporated in England and Wales on 10th January 2008 and is a subsidiary of BRAC Bank Limited,
Bangladesh. The Company has been formed through acquisition of the erstwhile “Saajan Worldwide
Money Transfer Limited” in 2011.The Company mainly provides remittance services to the large
Bangladeshi Communities living outside Bangladesh. Apart from remittance services the Company
also caters to the needs of the NRBs through its parent organization. BRAC Bank Limited. BRAC
Bank, within its first 9 years of operation became the fastest growing Bank in Bangladesh.
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BRAC IT Services Ltd. (biTS) is an IT Solution and Services company
and is a subsidiary jointly owned by BRAC Bank and BRAC. biTS have been created in 2013 during
the joining of a subsidiary IT company. It providing technology solutions and managed IT Services in
Bangladesh
1.1.5 Corporate Social Responsibility
Since the beginning, as a responsible corporate body BRAC Bank Ltd. has accepted various initiative
considering the interest of customers, employees, shareholders, communities and environment. These
initiatives go beyond the legal responsibility/compulsory compliances to voluntary activities that
promote sustainable development. A significant portion of earning of the bank is routed through the
ownership structure of the Bank for building just enlightened poverty free Bangladesh – is the vision
that the founder Chairman and Chairperson of BRAC, Sir Fazle Hasan Abed dearly and closely follows
through. BRAC Bank’s vision is linked with social responsibility which focuses on the ‘triple bottom
line’: People, Planet and Profit. Currently, BRAC Bank’s CSR program focuses on Education,
Health, Young leadership, Culture & heritage, Community development.
Brac Bank CSR Initiatives:
1. Education
 BRAC Bank-Prothom alo Trust Adamya Medhabi Scholarship.
 BRAC Bank provides scholarships to the meritorious students of Business Studies of Dhaka
University.
 Higher Education Dream: BRAC University Scholarships.
 Inspiring the youth for research and study in science: Biochemistry Olympiad.
2. Social Welfare
 Lifetime Support to Birprotik Taramon Bibi.
 Contribution of Blankets to Prime Minister’s Relief Fund.
 Bicycle for school girls.
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3. Environment
The bank tries to expand its solar power capacity as it has brought new SME Offices under the
renewable energy. The bank is keen to carry all 400 SME Unit Offices under solar energy.
4. Health
 Support to National Heart Foundation Hospital, Sylhet.
 Support to Bangladesh Thalassemia Samity and Hospital.
1.1.6 Operation details

SHAREHOLDING STRUCTURE
The shareholding structure of BRAC Bank Limited consists of different group with institutional
shareholdings by BRAC, International Finance Corporation (IFC), Shore cap International and general
public is also included through IPO. The present shareholder structure of BRAC Bank Ltd is as follows
SHAREHOLDERS PERCENTAGE
BRAC 43.77%
IFC 5.36%
Shore Cap International .86%
General Publication Through IPO 49.63%
Non-Resident Bangladeshis .38%
Total 100%
Table 1: Present shareholder Structure of BRAC Bank Ltd
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 MANAGEMENT HIERARCHY OF BRAC BANK LIMITED
Figure 1: Organizational-Structure
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Chapter 2
2.1 Job Responsibilities
My internship at BRAC Bank Limited started on April 17 th and it ended on July 18th. During these 3
months I was assigned at Brac Bank Head office. During this short period, I have experienced real
professional world and its manners. I have come to know several professional manners, training
manners and organization’s behaviors. During this 12 week I have gone through following
responsibilities-
I worked as an intern in the Account Services Department under the Operations Division at the Brac
Bank Head office during my internship. I had the opportunity to work with TD Opening Team and
Maintenance Team during that time.
By the time of internship, the role of the intern is to supervise and assist in doing day to day activities
of a particular department. The contribution was highly appreciated when working as an intern at
BRAC Bank Limited, Where the main effort was to provide the most extreme assistance to bank
officers and to assist them in facilitating their work. The commitments included my daily help with
their operational activities to the department of the Accounts Services Team and officers.
I learned how the Government and the Bank of Bangladesh are preventing banks from being used as a
channel for money laundering and criminal funding. Bangladesh Bank requires banks to file CTR
(Cash Transaction Report) if there is a one-day transaction over 10 lakes. The banks are also required
to file STR (Suspicious Transaction Report) when there is any suspicious or unfamiliar transaction in
any of the bank accounts. We have a project called "CTR Related AOF Fields Update."
This project aims at collecting the missing account level information from the AOF and cross -
checking the information with the Finacle system where the Branch Governance department provides
the updated information.
The following responsibilities have been carried out:
 Update securities of SME, Retail loan & Account opening files in checklist
 Update securities of these files in central database using “Finacle” a software that is currently
BBL using
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 Creating Top least based on these data by using Microsoft Excel where loan file no and loan
account no of a client can be found. Updated Trade license, passport and NID number into the
system and checked the related document
 Finally used to update these data in net server and used to make report to project manager at
the end of work.
 Worked with current account & saving account closing team.
2.2 Functions of the Department
 Introduction to Operations Division of BRAC Bank
This division's core focus is "Forwarding digitalization to simplify processes." Under this division
there were eight departments until 2016, two new departments named Credit Administration and
Process Reengineering were added in 2017.
Operations Division usually deals directly with customers and all transactions occur with their
accounts such as money transactions, issuing cards, storing customer information, updating
information, issuing checkbooks, etc.
 Department of Accounts Services

 Retail
 Maintenance
 Agent Banking
 Product Support
 Payment and Transaction
 SME
 TD (Term Deposit) opening
 TD closing
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Chapter 3
3.1 Analysis of industry
After the independence, banking industry in Bangladesh began its journey with 6 state-owned
commercialized banks .2 State owned specialized banks and 3 Foreign Banks. In the 1980's banking
industry achieved significant expansion with the entrance of private banks. Presently, banks in
Bangladesh are fundamentally of two kinds (Source: Bangladesh Bank)
 Scheduled Banks: Banks which inspire license to operate under Bank Company Act,1991
(Amended up to 2013) are named as Scheduled Banks.
 Non-Scheduled Banks: Banks which are built up for extraordinary and explicit goal and
operate under the demonstrations that are ordered for getting together those targets, are
named as Non-Scheduled Banks. These banks can't play out all elements of scheduled
banks.
There are 58 scheduled banks in Bangladesh who operate under full control and supervision of
Bangladesh Bank which is enabled to do as such through Bangladesh Bank Order, 1972 and Bank
Company Act,1991. Schedule Banks are characterized into following kinds:
 State Owned Commercial Banks (SOCBs): There are 6 SOCBs which are completely or
significantly owned by the Government of Bangladesh.
 Specialized Banks (SDBs): Two specialized banks are presently working which were built up
for particular targets like rural or modern advancement. These banks are likewise completely
or significantly owned by the Government of Bangladesh.
 Private Commercial Banks (PCBs): There are 41 private commercial banks which are
significantly owned by the private entities. PCBs can be classified into two groups:
 Conventional PCBs: There are 33 customary PCBs are currently operating in the industry.
They play out banking functions in conventional growth i.e. interest based operations.
 Islamic Shariah based PCBs: There are 8 Islamic Shariah based PCBs in
Bangladesh and they execute banking activities as indicated by Islamic Shariah
based standards. i.e. Profit Loss Sharing (PLS) mode.
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 Foreign Commercial Banks (FCBs): There are 9 FCBs are working in Bangladesh as the
branches of the banks which are incorporated in abroad.
There are currently six non-scheduled banks in Bangladesh which are:
1. Ansar VDP Unnayan Bank.

2. Karmashangosthan Bank.
3. Grameen Bank.
4. Jubilee Bank.
5. Probashi Kollyan Bank.
6. Palli Sanchay Bank.
The most important duty that is done by a bank is increase its capital. Then, good performance of
the bank is usually measured as per its profitability levels and has been essential to shareholders,
customers as well as for banks continued survival and expansion.
 GENERATION OF BANKING SYSTEM IN BANGLADESH
According to the Bangladesh Bank and Banking Career in Bangladesh, banks are divided into four
groups according to their commencement of business (BCIB, 2016). The four groups of banks in
Bangladesh are given below:
 1st Generation Banks: (Before 1991)
AB Bank, Islami Bank Bangladesh, National Bank, IFIC Bank, Pubali Bank, The City Bank,
United Commercial Bank, Uttara Bank, ICB Islamic Bank, Agrani Bank, Janata Bank, Rupali
Bank, Sonali Bank, BASIC Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank.
 2nd Generation Banks: (1991 to 1999)
Prime Bank, Dhaka Bank, Dutch-Bangla Bank, Eastern Bank, Al-Arafah Islami Bank, NCC Bank,
Social Islami Bank, Southeast Bank.
 3rd Generation Banks: (1999 to 2011)
Jamuna Bank, Bangladesh Commerce Bank, Bank Asia, BRAC Bank, Mercantile Bank, Mutual
Trust Bank, First Security Islami Bank, One Bank, Premier Bank, Standard Bank, Trust Bank,
EXIM Bank, Shahjalal Bank.
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 4th Generation Banks: (2011 to Present)
Union Bank, Modhumoti Bank, Farmers Bank, NRB (Global) Bank, NRB Bank, Meghna Bank,
Midland Bank, NRB Commercial Bank, South Bangla Agriculture & Commerce Bank.
3.2 PEER GROUP/ MAIN COMPETITORS
The main objective of this report is to evaluate Brac Bank LTD financial performance comparing with
other commercial banks of Bangladesh. The banks selected for comparing the financial performance
of Brac Bank LTD. with other commercial banks which are Bank Asia, Mutual Trust Bank Ltd (MTB),
Jamuna Bank LTD and Prime Bank. The selected banks were selected on the basis of their financial
performance and generation. All 5 banks are from 3rd generation which will be helpful to get an
overview about the 3rd generation banks of Bangladesh.
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3.2.1 JUSTIFICATION FOR THE SELECTED COMPETITORS
After analyzing the annual reports of all the selected banks, it showed that all the banks had tremendous
growth in their balance sheets and profitability. Previous to additional analysis of the annual reports
of selected 5 banks I got a clear overview that the overall quality of assets and provision against those
assets had a significant growth. Banks mainly generates profit from four key sources like, net income,
investment income, exchange and brokerage, commission and other operating profits. As our main
objective is to evaluate the financial performance of Brac bank later I have chosen Bank Asia, Mutual
Trust Bank Ltd (MTB), Jamuna Bank LTD and Prime Bank comparison and the selected banks were
selected on the basis of their financial performance and generation.
 COMPARATIVE ANALYSIS OF THE FINANCIAL WELL-BEING OF

COMMERCIAL BANKS IN BANGLADESH
Financial analysis involves a comparison of a firm’s performance with other firms in the same
business sector, which is mainly identified by the firm’s industry classification. This analysis is
used to identify the firm’s current financial position in the industry and also recommends the
changes needed for the improvement of the firm’s profitability and the future.
To make the analysis effective I have chosen 10 (Ten) ratios which are listed below:
1. Profit Margin
2. Return on Asset
3. Return on Equity
4. Cash Ratio
5. Debt to Equity Ratio
6. Leverage Ratio
7. Capital Adequacy Ratio
8. Tier 1 Capital Ratio
9. Tier 2 Capital Ratio
10. Net interest Margin
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3.3.1 Return on Asset:
Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA
gives a manager, investor, or analyst an idea as to how efficient a company's management is at using
its assets to generate earnings (Inc, n.d.). Return on assets is displayed as a percentage and it’s
calculated as:
ROA is expressed as a percentage and calculated as:
Return on Asset = Net income / Total asset
2.00%
1.80%
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
2014 2015 2016 2017 2018
BRAC BANK 1.05% 1.01% 1.52% 1.89% 1.58%
Bank Asia Limited 1.10% 1.10% 0.60% 0.70% 0.70%
JAMUNA BANK LIMITED 0.97% 1.18% 1.11% 1.10% 1.07%
PRIME BANK 0.89% 0.86% 0.80% 0.43% 1.04%
Mutual Trust Bank Ltd. 1.20% 0.90% 0.90% 1.00% 0.80%
Interpretation: The higher is ROA; the better is the bank's profitability. ROAs differ between banks
largely due to differences in net interest income, provisions for loan losses, and burden. Let's evaluate
the ROA for 5 banks in the banking industry of Bangladesh. From the above graph we can see how
each bank using its assets to generate earnings. In 2014 ROA of Brac Bank was 1.05% which means
that every taka that Brac bank invested in assets during 2014 gives a return of 1.05 Taka of net income,
But Jamuna and Prime bank (0.97% and .89%) also had a good rate of ROA in the following year. In
the banking industry a “ROA” above 1% is pretty good indicator for their investors. As we already see
the ROA of Brac Bank was low between other two banks it clearly states that these three banks have
used its assets efficiently. But in the last four years (2015-2018). Here the Return on Asset of Brac
Bank in 2015 was 1.01% in 2016 which increased to 1.52%, in 2017 also Return on Asset increased
to 1.89% but in 2018 Return on Asset decreased to 1.58%, It means in 2017 and 2018 they got higher
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returns from their total asset than previous 5 years. Here in compare to Brac bank with peer groups
Bank Asia has lower Return on Asset.
3.3.2 Return on Equity
It is the amount of net income returned as a percentage of shareholder’s equity (Accounting Verse,
2017). Return on equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested. (Ross, 2013)
ROE is expressed as a percentage and calculated as:

Return on Equity = Net Income/Shareholder's Equity
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2014 2015 2016 2017 2018
BRAC BANK 11.78% 12.95% 20.80% 20.20% 17.53%
PRIME BANK 14.88% 12.22% 12.30% 6.71% 16.48%
Interpretation: Return on equity told us how management was able to generate profits from the
shareholder’s equity. For every BDT, they created, how many assets were they able to create the
shareholders. The return on equity is similar to the “return on assets”. Assets come from two sources:
debt and equity. The ROE focuses on the latter. Return on equity measures profitability using resources
provided by investors and company earnings. A higher return on equity indicates that a company is
effectively using the contributions of equity investors to generate additional profits and return the
profits to investors at an attractive level. From the above graph we can see in 2016 Brac bank holds
the highest ROE than any other bank which indicates Brac bank has used its equity efficiently to
generate maximum net income. But after 2014 due to a huge fall in their net income Brac bank had to
suffer from proper utilization of shareholder’s equity therefore the ROE has also drastically decreased.
25 | P a g e
On the other hand, MTB (Mutual Trust Bank Limited, 2014) has the highest ROE than any other banks
till 2015. In compare to Brac bank with peer groups only Brac Bank (Brack Bank, 2014)has 11.78%
to 20.80% of their Return on Equity so Brac Bank used their investor money to generate profit than
other banks.
3.3.3 Profit Margin
The net profit margin is equivalent to how much net income or profit is formed as a level of income
Net profit margin is the ratio of net benefits to incomes for an organization or business fragment. Net
profit margin is regularly transferred as a rate yet can similarly be spoken to in decimal structure. The
net profit margin delineates the amount of every dollar in income gathered by an organization converts
into benefit.
Profit margin is expressed as a percentage and calculated as:
Profit margin= Net Income/ Total opeareting income
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2014 2015 2016 2017 2018
BRAC BANK 13.16% 13.18% 22.10% 22.15% 21.33%
PRIME BANK 20.10% 17.65% 17.98% 9.57% 16.80%
26 | P a g e
Interpretation: The higher net profit margin percentage is always better for a Bank. Here the Net
Profit Margin of Brac Bank 2014 was 13.16% in 2015,2016 and 2017 which was increased to
13.18%,22.10% and 22.15% but in 2018 which was fall to 21.33%. So, in compare to Brac Bank and
its peer group, here in 2014 to 2013 Bank Asia ( Bank Asia Limited,, 2019) has higher net profit
margin.
3.3.4 CASH RATIO
The Cash ratio is an estimation of an organization's liquidity, explicitly the proportion of an

organization's total cash and cash counterparts to its present liabilities. The measurement numbers an
organization's capacity to refund its temporary obligation with money or close money assets, for
example, effectively attractive protections. This data is helpful to lenders when they choose how a lot
of cash, assuming any, they would advance an organization. The Cash ratio is practically similar to a
marker of an association's an incentive under the direst outcome imaginable—state, where the
organization is going to leave business. It tells investors and experts the valuation of current resources
that could quickly be transformed into money, and what level of the organization's present liabilities
these money and close money resources could cover.
Cash ratio expressed as a percentage and calculated as:
Cash Ratio = CASH/ TOTAL ASSET
10.00%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2014 2015 2016 2017 2018
BRAC BANK 0.84% 0.72% 0.64% 0.66% 0.71%
PRIME BANK 9.09% 7.02% 6.51% 6.41% 6.31%
27 | P a g e
Interpretation: If the company has enough cash & cash equivalents and marketable securities to
cover for current liabilities, the cash ratio will result in an amount greater than 1; otherwise, less than
1. From the graph we can see that Brac bank cash ratio is less than 1 which means Brac Bank have not
enough funds to cover for all current liabilities. Compare with the peer’s groups Jamuna bank (Jamuna
Bank, 2019) and (Prime Bank, 2019) has stable position and they have enough funds to cover all the
liability.
3.3.5 Debt to Equity Ratio
The debt-to-equity (D/E) ratio is determined by dividing an organization's total liabilities by its
investor value. These numbers are available on the monetary record of an organization's fiscal reports.
The proportion is utilized to assess an organization's money related influence. The D/E ratio is a
significant measurement utilized in corporate account. It is a ratio of how much an organization is
financing its activities through obligation against entirely possessed assets. All the more undoubtedly,
it mirrors the capacity of investor value to cover every single extraordinary obligation in case of a
business downturn.
Debt to Equity Ratio expressed as a percentage and calculated as:
Debt to Equity Ratio = TOTAL DEBT/ SHAREHOLDER'S EQUITY
1800.00%
1600.00%
1400.00%
1200.00%
1000.00%
800.00%
600.00%
400.00%
200.00%
0.00%
2014 2015 2016 2017 2018
BRAC BANK 1052.29% 1093.12% 1140.68% 1120.05% 999.74%
PRIME BANK 693.10% 771.40% 958.60% 96.20% 1236.30%
28 | P a g e
Interpretation: A higher debt-equity ratio indicates a levered firm, which is quite preferable for a
company that is stable with significant cash flow generation, but not preferable when a company is in
decline. Conversely, a lower ratio indicates a firm less levered and closer to being fully equity financed.
The appropriate debt to equity ratio varies by industry. Compare with peers group Bank Asia position
is very good.
3.3.6 Leverage Ratio
A leverage ratio is any one of several financial valuations that take a look at how much capital comes
as debt (Loan) or evaluates the capacity of an organization to meet its financial commitments. The
leverage ratio classification is significant in light of the fact that organizations depend on a blend of
value and obligation to fund their activities, and knowing the measure of obligation held by an
organization is helpful in assessing whether it can pay its obligations out of this world due. (General
Banking, Bankers Guide. (n.d.). Retrieved , 2019) (Investing Answers, 2018)
Leverage ratio expressed as a percentage and calculated as:
Leverage ratio= Tier 1 capital/ Total asset
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2014 2015 2016 2017 2018
BRAC BANK 0.78% 0.76% 0.79% 0.86% 0.91%
PRIME BANK 8.36% 9.06% 8.65% 8.16% 11.22%
Interpretation: A leverage ratio is any kind of financial ratio that indicates the level of debt incurred
by a business entity against several other accounts in its balance sheet, income statement, or cash flow
29 | P a g e
statement. These ratios provide an indication of how the company’s assets and business operations are
financed. From the above graph we can see Brac Bank and Jamuna bank have safe position in compares
with five banks. The MTB has risker position. (Investing Answers, 2018)
3.3.7 Capital Adequacy Ratio
Capital Adequacy Ratio (CAR) is the ratio of a bank’s capital in relation to its risk weighted assets and
current liabilities. It is decided by central banks and bank regulators to prevent commercial banks from
taking excess leverage and becoming insolvent in the process. Two types of capital are measured: tier
one capital, which can absorb losses without a bank being required to cease trading, and tier two
capital, which can absorb losses in the event of a winding-up and so provides a lesser degree of
protection to depositors. (My Accounting Course, 2018)
Capital adequacy ratio expressed as a percentage and calculated as:
Capital adequacy ratio: (Tier1 capital + Tier 2 capital)/ Risk weighted assets.
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2014 2015 2016 2017 2018
BRAC BANK 14.72% 12.29% 12.26% 11.97% 13.67%
PRIME BANK 12.71% 12.74% 12.45% 14.01% 17.04%
Interpretation: According to Bangladesh bank, all schedule banks should maintain a minimum capital
adequacy rate of 10%. The abnormal growth of either side of CAR is not a good sign for any bank.
From the graph we can see all of the banks are maintain the capital adequacy ratio above the minimum
requirement rate by Bangladesh bank. In the year 2014 Brac Bank CAR was 14.72% but It has
decreased in the following year in 2015 ,2016 and 2017 to 12.29% 12.26% and 11.97%. it has
increased to 13.67% in 2018. Though all the banks have fluctuated and witnessed ups and downs in
30 | P a g e
their CAR but as we have seen all of the banks still maintaining the minimum requirements given by
the Bangladesh bank, which indicates all 5 banks are maintaining acceptable capital to supports its
risks. (Bangladesh Bank cuts loan-deposit ratio 1.5%., 2018).
3.3.8 Tier 1 Capital Ratio
The tier 1 capital ratio is the proportion of a bank's center tier 1 capital—that is, its value capital and
uncovered stores— to its total risk-weighted assets. It is a key proportion of a bank's money related
quality that has been received as a feature of the Basel III Accord on bank guideline. (Journal of Social
Ecorronlics, 218)
Tier 1 Capital Ratio expressed as a percentage and calculated as:

Tier 1 Capital Ratio= Tier 1 Capital/Total Risk Weighted Asset
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2014 2015 2016 2017 2018
BRAC BANK 11.95% 10.40% 10.46% 10.59% 12.31%
PRIME BANK 10.48% 10.00% 9.30% 10.01% 10.84%
Interpretation: The Tier 1 capital ratio compares the core equity capital of a banking entity to its risk-
weighted assets. The ratio is used by bank regulators to assign a capital adequacy ranking. A high ratio
indicates that a bank can absorb a reasonable amount of losses without risk of failure. Form the graph
we can see that all 5 banks have stable position. Compare with peers’ groups Brac Bank position is
very strong.
31 | P a g e
3.3.9 Tier 2 Capital Ratio
Tier 2 capital is the optional part of bank capital that makes up a bank's required stores. Tier 2 capital
is assigned as valuable capital and is made out of things, for example, revaluation holds, undisclosed
stores, crossover instruments, and subjected term debt.
Tier 2 Capital Ratio expressed as a percentage and calculated as:

Tier 2 Capital Ratio: Tier 2 capital / Risk weighted assets
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2014 2015 2016 2017 2018
BRAC BANK 2.77% 1.89% 1.80% 1.38% 1.35%
PRIME BANK 2.23% 2.74% 3.15% 4.00% 6.20%
Interpretation: Tier 2 capital is considered less reliable than Tier 1 capital because it is more difficult
to accurately calculate and is composed of assets that are more difficult to liquidate. Tier 2 capital
comprises unaudited retained earnings, unaudited reserves, and general loss reserves. This capital
absorbs losses in the event of a company winding up or liquidating. Compare with the five Banks City
Bank condition is so weak and other has stable poison.
32 | P a g e
3.3.10 Net interest Margin (NIM)
The NIM ratio measures the profit a company makes on its investing activities as a percentage of total
investing assets. Banks and other financial institutions typically use this ratio to analyze their
investment decisions and track the profitability of their lending operations. This way they can adjust
their lending practices to maximize profitability.
Net Interest Margin is expressed as a percentage and calculated as:
Net Interest Margin = (Interest income – Interest expense) / Total Asset
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2014 2015 2016 2017 2018
BRAC BANK 0.37% 0.39% 0.43% 0.44% 0.43%
PRIME BANK 1.07% 0.52% 1.18% 1.77% 3.59%
Interpretation: Net interest margin is typically used for a bank or an organization that invests
depositor’s money, allowing for an interest margin between what is paid to the bank’s client and what
is made from the borrower of the funds. A positive net interest margin indicates that an entity has
invested its funds efficiently while a negative return implies that the bank or investment firm has not
invested efficiently. From the above graph we can see all the banks have a positive net profit margin,
In the year 201 MTB Bank has witnessed the most prominent NIM by decreasing interest income and
interest expense.
33 | P a g e
Recommendation
According to the analysis, we can see that BRAC bank is performance well over the periods of time.
But they need to consider some of the issues to retain upward advance over its competitors and improve
to be successful within this industry in upcoming years. Here some recommendations for BRAC bank
is given below-
1. According to ROA ratio analysis, BRAC bank has maintained a well ROA ratio with an upward
trend compared to their competitors. But they should take proper ways to sustain this upward
growth. To maintain their upward, sustain growth they should constantly find the ways to
reduce their asset costs and increase income to keep their ROA as high as possible.
2. If a bank wants to Re-present their firm as an attractive area for capitalize to the depositor in
the market, they must pay attention on their ROE ratio. Though BRAC Bank ROE performance
is going well recently but if they want to maintain or improve their ROE performance, they
should keep pay attention on some issues Improve their asset turnover, use more Financial
Leverage, Increase their Profit Margin, Lower Taxes
3. In terms of Net Interest Margin Brac bank need to maintain a higher positive percentage of net
interest margin ratio. Because it signifies how optimal is their investment decision. Brac bank
should maintain a well difference between their interest expense and interest income.
According to the analysis BRAC bank is maintaining a good NIM ratio over the periods of
time which is a positive sign for the bank.
4. If we talk about Capital Adequacy ratio Brac Bank performance is favorable over the years.
Generally, it is used to keep investors and promote their constancy and efficiency of financial
systems. A bank with a high capital adequacy ratio is considered safe and likely to meet its
financial obligations. To maintain a proper capital Adequacy ratio Brac Bank should always
maintain an enough shield against unexpected losses that may stand up during time of stress.
For future they should maintain capital adequacy ratio in a proper way.
34 | P a g e
Conclusion
I did my internship at Brac Bank Head office. During my internship period really I enjoyed a lot from
the point of view of learning experiencing. During internship period my rotation inside Account
services department was on a typical 12 weeks. This period was certainly not adequate for
understanding the diverse functions of the bank in depth. This report will offer help to recognize the
major tasks of the department to be particular General Banking. The major finding of this report is to
provide a wide and common overview of banking activities. It has been observed that through the
activities of distinctive departments how Brac Bank is giving and maintaining wonderful working
environment. From my internship program, I have tried my level best to know about banking activities.
To realize this practical knowledge, I always try to compare with my theoretical knowledge for better
understanding. And I believe the combination of my academic knowledge and practical knowledge
about business will help me to do best in my professional life.
35 | P a g e
References
Bank Asia Limited,. (2019). Retrieved from https://www.bankasia-bd.com/
Bangladesh Bank cuts loan-deposit ratio 1.5%. (2018, January). Bangladesh Bank cuts loan-deposit
ratio 1.5%. Retrieved from
https://www.dhakatribune.com/business/regulations/2018/01/31/bangladesh-bank-cuts-
deposit
Brack Bank. (2014). Annul Report. Retrieved from https://www.bracbank.com/en/
General Banking, Bankers Guide. (n.d.). Retrieved . (2019). Retrieved from

https://bankerguide.wordpress.com/general-banking/
Investing Answers. (2018). Investing Answers. Retrieved from

http://www.investinganswers.com/financialdictionary/businesses-corporations/bank-deposits
Jamuna Bank. (2019). Jamuna Bank. Retrieved from https://jamunabankbd.com/
Journal of Social Ecorronlics. (218). Journal of Social Ecorronlics. Retrieved from

https://www.investopedia.com/terms/r/returnonequity.asp
Mutual Trust Bank Limited. (2014). Retrieved from https://www.mutualtrustbank.com/
My Accounting Course. (2018). My Accounting Course. Retrieved from

https://www.myaccountingcourse.com/financialratios/return-on-assets
Prime Bank. (2019). Retrieved from https://www.primebank.com.bd/
Ross, W. a. (2013). Retrieved from https://www.investopedia.com/articles/active-

trading/082615/key-financial-ratios
36 | P a g e
Appendix
Brac Bank ltd
BRAC BANK LIMITED
YEAR 2014 2015 2016 2017 2018

NET 2101567513. 2339886426.0 4075664714.0 5498406039.0 5670068769.0
INCOME 00 0 0 0 0
TOTAL 2007336012 231,602,270,3 268,344,018,0 290,946,272,7 358,004,626,0
ASSETS 25.00 83.00 65.00 83.00 83.00
SHAREHOL
DER'S 1775525669 18815759402. 21441904297. 25991657840. 31638670325.
EQUITY 3.00 00 00 00 00
1709132372 16,227,438,47 15,827,759,71 18,301,854,03 22,394,474,14
CASH 7.00 5.00 4.00 2.00 2.00
INTEREST 1679448902 17373669023. 17842890367. 20498380321. 25090448240.
INCOME 1.00 00 00 00 00
INTEREST 9192679032. 8699490278.0 7036378043.0 8351931514.0 11574897542.
EXPENSE 00 0 0 0 00
TIER1 1600556902 18,378,729,97 19707590643. 23,875,733,58 28780644876.
CAPITAL 3.00 0 00 4 00
TIER2 3712780213. 3389763209.0 3157334896.0
CAPITAL 00 3,334,927,993 0 3,102,378,818 0
RISK
WEIGHTED 1339305429 176,714,095,5 18843142856 225,437,767,0 23371309544
ASSETS 05.00 76 1.00 85 5.00
TOTAL 1868366756 20567884669 24458411725 29112037341 31630444078
DEBT 28.00 3.00 3.00 1.00 1.00
Total
operating 1589346025 18482501554. 20185479110. 23701400445. 26007722266.
income 9.00 00 00 00 00
37 | P a g e
Ratio Analysis
Profit Margin 13.22% 12.66% 20.19% 23.20% 21.80%

Return on
Asset 1.05% 1.01% 1.52% 1.89% 1.58%
Return on
Equity 11.84% 12.44% 19.01% 21.15% 17.92%
Cash Ratio 8.51% 7.01% 5.90% 6.29% 6.26%

Debt to Equity
Ratio 1052.29% 1093.12% 1140.68% 1120.05% 999.74%
Leverage
Ratio 7.97% 7.94% 7.34% 8.21% 8.04%
Capital
Adequacy
Ratio 14.72% 12.29% 12.26% 11.97% 13.67%
Tier 1 Capital
Ratio 11.95% 10.40% 10.46% 10.59% 12.31%
Tier 2 Capital
Ratio 2.77% 1.89% 1.80% 1.38% 1.35%
Net interest
Margin 3.79% 3.75% 4.03% 4.17% 3.78%
Bank Asia LTD
Bank Asia Limited

YEAR 2014 2015 2016 2017 2018
2,012,557,41
NET INCOME
7 2,550,070,034 1,644,066,246 2,112,089,343 2,233,390,509
11,085,645,3 12,470,996,85 15,983,718,05 17,933,208,77 15,555,719,85
Cash
58 2.00 4.00 3.00 4.00
TOTAL 182,730,362, 225,665,607,0 254,866,120,1 290,946,272,7 309,127,870,6
ASSETS 143 38 98 84 58
SHAREHOLD 168,648,731, 225,657,430,1 254,866,120,1 290,946,272,7 309,219,704,5
ER'S EQUITY 630 09 98 83 12
INTEREST 13,914,932,7 14,008,232,84 14,795,577,26 16,537,474,86 21,010,148,20
INCOME 31 5 5 1 0
INTEREST 10,699,632,1 11,170,653,17 10,600,325,76 13,007,326,27
1,084,114,364
EXPENSE 76 2 2 4
TIER1 14,173,532,4 16,400,532,65 16,735,542,65 18,852,532,45 21,165,532,62
CAPITAL 53 2 3 3 3
TIER2 13,917,761,8 14,061,761,85
8,039,761,898 6,436,761,845 3,669,762,823
CAPITAL 23 7
38 | P a g e
RISK
233,085,038, 221,114,038,1 199,490,038,1 183,247,038,1 157,574,038,1
WEIGHTED
141 43 62 26 54
ASSETS
165,866,515, 206,969,362,1 236,002,681,3 270,012,593,4 286,038,031,9
TOTAL DEBT
850 04 63 52 68
Total operating 6,615,576,83 10,520,520,55 11,039,619,98 12,355,285,74
6,222,595,995
income 0 5 3 0
Ratio Analysis
Profit Margin 30.4% 24.2% 14.9% 17.1% 35.9%

Return on
1.1% 1.1% 0.6% 0.7% 0.7%
Asset
Return on
1.2% 1.1% 0.6% 0.7% 0.7%
Equity
Cash Ratio 6.1% 5.5% 6.3% 6.2% 5.0%
Debt to Equity
98.4% 91.7% 92.6% 92.8% 92.5%
Ratio
Leverage Ratio 7.8% 7.3% 6.6% 6.5% 6.8%
Capital
Adequacy 12.1% 13.8% 12.4% 13.8% 15.8%
Ratio
Tier 1 Capital
6.1% 7.4% 8.4% 10.3% 13.4%
Ratio
Tier 2 Capital
6.0% 6.4% 4.0% 3.5% 2.3%
Ratio
Net interest
1.8% 1.3% 1.6% 5.3% 2.6%
Margin
Jamuna Bank LTD
JAMUNA BANK LIMITED

YEAR 2014 2015 2016 2017 2018
1347128943.0 1,686,588,673. 1,880,292,800. 2,181,475,582. 2,408,639,151.
NET INCOME
0 00 00 00 00
TOTAL 139494380981 143,434,017,01 169,180,315,68 197,669,198,94 225,540,085,68
ASSETS .00 1.00 9.00 9.00 9.00
SHAREHOLD 15,690,269,88 15,729,272,774 15,784,252,843 15,424,553,970 18,045,115,093
ER'S EQUITY 4.00 .00 .00 .00 .00
10,987,520,73 11,807,420,437 10,460,741,392 11,483,138,074 11,938,932,885
CASH
6.00 .00 .00 .00 .00
INTEREST 9,902,689,115. 9,709,005,665. 11,472,092,844 15,001,778,891
10269613095
INCOME 00 00 .00 .00
INTEREST
EXPENSE 8752189892 7,514,054,174 8,632,491,743 9,709,005,665 11,472,092,844
39 | P a g e
TIER1 14,472,532,782
CAPITAL 914,400,000 1,077,300,000 1,135,900,000 1,217,900,000 .00
TIER2 14,472,536,752
CAPITAL 195,100,000 385,100,000 439,800,000 772,100,000 .00
RISK
194,137,863,47
WEIGHTED
2.00
ASSETS 9,865,100,000 11,482,100,000 14,559,100,000 16,813,700,000
128635186439 127,704,742,41 153,396,061,15 182,244,643,20 207,494,968,85
TOTAL DEBT
.00 1.00 5.00 2.00 6.00
Total operating 7,118,011,146. 8,188,982,031. 8,865,535,380. 9,894,394,678.
6090649218
income 00 00 00 00
Ratio Analysis
Profit Margin 22.12% 23.69% 22.96% 24.61% 24.34%

Return on Asset 0.97% 1.18% 1.11% 1.10% 1.07%
Return on
8.59% 10.72% 11.91% 14.14% 13.35%
Equity
Cash Ratio 7.88% 8.23% 6.18% 5.81% 5.29%
Debt to Equity
819.84% 811.89% 971.83% 1181.52% 1149.87%
Ratio
Leverage Ratio 0.66% 0.75% 0.67% 0.62% 6.42%
Capital
Adequacy 11.25% 12.74% 10.82% 11.84% 14.91%
Ratio
Tier 1 Capital
9.27% 9.38% 7.80% 7.24% 7.45%
Ratio
Tier 2 Capital
1.98% 3.35% 3.02% 4.59% 7.45%
Ratio
Net interest
1.09% 1.9% 0.90% 1.32% 2.26%
Margin
Mutual Trust Bank LTD
Mutual Trust Bank LIMITED
YEAR 2014 2015 2016 2017 2018

13,572,145,60 1,366,197,00 1,463,593,42 1,980,337,80 1,734,449,55
NET INCOME 7 9 8 5 0
9,485,078,89 11,263,046,5 13,077,123,5 12,301,086,1
Cash 7,988,778,674 8 77 17 94
TOTAL 1,163,011,184, 146,059,301, 165,370,686, 201,753,934, 222,444,897,
ASSETS 005 545 869 194 851
SHAREHOLD 67,701,661,45 8,929,145,60 109,762,118, 13,279,145,6
ER'S EQUITY 1 7 9818166145 405 07
INTEREST 10,793,151,7 11,381,166,1 12,160,542,9 15,687,277,1
INCOME 9,717,166,160 76 60 62 55
40 | P a g e
INTEREST 7,980,145,60 7,503,118,40 7,853,166,14 10,436,187,0
EXPENSE 7,882,151,776 7 5 5 22
TIER1 7,599,170,33 8,983,551,65 10,067,166,1 11,336,145,6
CAPITAL 6,247,123,312 5 4 45 07
TIER2 4,846,276,93 4,715,698,04 9,105,686,86
CAPITAL 2,464,146,509 8 5 9 9,671,800.00
RISK
WEIGHTED 81,259,809,30 102,101,139, 118,992,170, 138,224,493, 163,644,432,
ASSETS 8 590 163 294 666
109,530,120,1 137,129,985, 155,552,304, 189,991,847, 209,165,941,
TOTAL DEBT 34 371 703 440 427
Total operating 97,171,661,40 6,580,255,15 7,514,879,96 8,487,063,72 9,829,119,61
income 5 0.00 2.00 0.00 9.00
Ratio Analysis
Profit Margin 14.0% 20.8% 19.5% 23.3% 17.6%
Return on Asset 1.2% 0.9% 0.9% 1.0% 0.8%

Return on
Equity 20.0% 15.3% 14.9% 1.8% 13.1%
Cash Ratio 0.7% 6.5% 6.8% 6.5% 5.5%

Debt to Equity
Ratio 161.8% 1535.8% 1584.3% 173.1% 1575.1%
Leverage Ratio 78.2% 80.1% 79.8% 77.0% 92.2%

Capital
Adequacy Ratio 10.7% 12.2% 11.5% 13.9% 6.9%
Tier 1 Capital
Ratio 7.7% 7.4% 7.5% 7.3% 6.9%
Tier 2 Capital
Ratio 3.0% 4.7% 4.0% 6.6% 0.0%
Net interest
Margin 0.2% 1.9% 2.3% 3.9% 2.4%
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Prime Bank LTD
PRIME BANK LIMITED

YEAR 2014 2015 2016 2017 2018
2,393,690,32 2,173,001,605. 2,188,088,351. 1,215,528,259. 2,253,633,766.
NET INCOME
8 00 00 00 00
TOTAL 269,218,863, 253,474,396,52 273,177,965,56 282,394,940,98 216,809,881,06
ASSETS 290 5.00 6.00 7.00 0.00
16,085,645,35 17,785,788,149 17,785,788,149 18,113,625,948 13,673,599,695
CASH 8 .00 .00 .00 .00
SHAREHOLD 24,461,780,3 26,503,871,888 25,293,390,286 24,812,947,703 15,416,935,348
ER'S EQUITY 45 .00 .00 .00 .00
INTEREST 18,446,903,4 15,566,795,107 13,907,214,815 14,879,403,193 18,524,318,925
INCOME 81 .00 .00 .00 .00
INTEREST 15,574,490,2
EXPENSE 71 14,257,390,538 10,676,491,402 9,875,491,205 10,741,302,194
TIER1 22,511,491,0
CAPITAL 43 22,977,410,240 23,634,673,091 23,048,678,201 24,335,390,124
TIER2 4,802,489,10
CAPITAL 3 6,306,092,134 7,998,370,103 9,203,379,013 13,924,589,013
RISK
WEIGHTED 214,892,872, 229,843,567,12 254,001,044,30 230,211,765,00 224,585,567,09
ASSETS 109 9 6 0 1
244,758,772, 226,970,524,57 247,884,575,22 247,884,575,22 226,970,524,57
TOTAL DEBT
014 5.00 1.00 1.00 5.00
Total operating 11,906,667,8 12,313,498,818 12,170,737,254 12,704,175,995 13,415,798,037
income 92 .00 .00 .00 .00
42 | P a g e
Ratio Analysis
Profit Margin 20.10% 17.65% 17.98% 9.57% 16.80%
Return on Asset 0.89% 0.86% 0.80% 0.43% 1.04%
Return on Equity 14.88% 12.22% 12.30% 6.71% 16.48%
Cash Ratio 9.09% 7.02% 6.51% 6.41% 6.31%
Debt to Equity Ratio 1521.60% 1276.13% 1393.72% 1368.50% 1659.92%
Leverage Ratio 8.36% 9.06% 8.65% 8.16% 11.22%
Capital Adequacy
Ratio 12.71% 12.74% 12.45% 14.01% 17.04%
Tier 1 Capital Ratio 10.48% 10.00% 9.30% 10.01% 10.84%
Tier 2 Capital Ratio 2.23% 2.74% 3.15% 4.00% 6.20%
Net interest Margin 1.07% 0.52% 1.18% 1.77% 3.59%
43 | P a g e

Internship Report On BRAC Bank Limited Financial Performance Analysis of BRAC Bank LTD

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Internship Report on BRAC Bank Limited

Financial Performance Analysis of BRAC Bank Ltd.

Mohammad Fahad Noor

Lecturer, Department of Finance.

Independent University, Bangladesh (IUB)

Name: Showkatul Islam

Course ID: BBA 499A

Date of Submission: 24th July 2019

24th July 2019

Mohammad Fahad Noor

Lecturer, Department of Finance.

Independent University, Bangladesh (IUB)

Subject: Submission of Internship report on “Financial Performance Analysis of BRAC Bank

Independent University, Bangladesh

1.1 Company Profile

 Member of Global Alliance for Banking on Values (GABV) Achievement:

 To be the absolute market leader in the SME loan.

1.1.1Vision, Mission, Core Value,

 Sustainable growth in Small & Medium Enterprise sector.

1.1.2 Corporate Division/Department

BRAC Bank Limited is made up of four major divisions, namely:

1. Corporate Banking Division

2. Retail Banking Division:

3. Small and Medium Enterprise (SME):

4. Foreign Trade & Treasury:

1.1.3 Details of the Services

Figure 2 Corporate product & services

Figure 3 Retail product & services

Figure 4 SME product & services

Brac bank limited have four subsidiaries:

B-Kash Limited was established to money transfer service in Bangladesh.

BRAC EPL Stock Brokerage Limited was established to provide

BRAC EPL Investment Limited delivers a complete range of

BRAC Saajan exchange Limited an Exchange Company

1.1.5 Corporate Social Responsibility

Brac Bank CSR Initiatives:

1.1.6 Operation details

Table 1: Present shareholder Structure of BRAC Bank Ltd

2.1 Job Responsibilities

The following responsibilities have been carried out:

2.2 Functions of the Department

 Introduction to Operations Division of BRAC Bank

 Department of Accounts Services

3.1 Analysis of industry

There are currently six non-scheduled banks in Bangladesh which are:

1. Ansar VDP Unnayan Bank.

 GENERATION OF BANKING SYSTEM IN BANGLADESH

 1st Generation Banks: (Before 1991)

 2nd Generation Banks: (1991 to 1999)

 3rd Generation Banks: (1999 to 2011)

3.2 PEER GROUP/ MAIN COMPETITORS

 COMPARATIVE ANALYSIS OF THE FINANCIAL WELL-BEING OF

3.3.2 Return on Equity

ROE is expressed as a percentage and calculated as:

3.3.3 Profit Margin

Profit margin is expressed as a percentage and calculated as:

Profit margin= Net Income/ Total opeareting income