An analysis on Effect of Budgeting

Process on the Budget Performance

of Dhaka Bank Limited

I
 Practicum Report
On

“An analysis on Effect of Budgeting process on the Budget Performance

of Dhaka Bank Limited”
Prepared For
Prof. Dr. Khair Jahan Sogra
Professor & Dean
College of Business Administration (CBA)

Prepared By
Shaymon Chaudhury
ID: 17102205
Program: BBA
Major: Finance & Banking

Date of subbmission
01/03/2021

II
 Letter of Transmittal

March 01st, 2021

Prof. Dr. Khair Jahan Sogra
Dean
College of Business Administration
IUBAT- International University of Business Agriculture and Technology

Subject: Submission of 'Practicum Report'

Dear Ma’am,

This is a privilege that I have completed my internship report and hereby ready to submit my
report on “An analysis on Effect of Budgeting Process on the Budget Performance of Dhaka
Bank Limited.”. According to instruction I have worked with every department of the Konabari
branch of Dhaka Bank Limited & analyzed the budgeting process on the budget performance
of the bank. I have really enjoyed the working environment of the DBL. I gave my utmost
effort to present all those things that I have experienced over there. Now, I need your
permission to present it.

Therefor I am looking for your permission to present my full practicum report. This report
along with all kinds of necessary information regarding the study is being submitted to you for
your evaluation. I sincerely hope that you will appreciate my effort.

Respectfully Yours,

__________________

Shaymon Chaudhury
ID- 17102205
Program: BBA
Major in Finance & Banking
Department of College of Business Administration (CBA)
IUBAT- International University of Business Agriculture and Technology

III
 Letter of Authorization

IV
 Student’s Declaration

I am Shaymon Chaudhury, a student (Major in Finance and Banking) of Bachelor of

Business Administration (BBA), under the College of Business Administration
(CBA) at IUBAT - International University of Business Agriculture and
Technology. I declare that the Internship Report on " An Analysis one Effect of
Budgeting Process on the Budget Performance of Dhaka Bank Limited". Embodies
the result of my own research works, pursued under the supervision of Saima
Rahman, Lecturer, Department of CBA, International University of Business
Agriculture & Technology.
I further affirm that the work done in this report is original and no part of this report
has been submitted to, in any form, any other university or Institution for any degree
or any other purpose.

__________________
Shaymon Chaudhury
ID No: 17102205
Department of CBA
Under BBA program

International University of Business Agriculture & Technology

V
 Supervisor’s Declaration

I acknowledge that Shaymon Chaudhury has prepared and completed the report
titled “An analysis on Effect of Budgeting Process on Budget Performance of Dhaka
Bank Limited” under my supervision and in accordance to the guidelines laid down
by the College of Business Administration (CBA), IUBAT.

Signature:

Date: March 1, 2021

Saima Rahman
Senior Lecturer
College of Business Administration (CBA)
International University of Business Agriculture and Technology (IUBAT)
4 Embankment Drive Road, Sector-10, Uttara, Dhaka-1230, Bangladesh.

VI
 Acknowledgement
I wish to acknowledge the immeasurable grace and profound kindness of almighty
Allah, the supreme ruler of the universe who enables me to make my report in reality.
My special gratitude to our Late Prof. Dr. M Alimullah Miyan, who was the pioneer
of nongovernment Universities in Bangladesh; who had broken the long-standing
monopoly in higher education through facilitating the establishment of a non-
government University in the country. Thus, he tried to concrete way for knowledge
generation and dissemination enlargement access to higher education to more border
strata of the society. And I would like to express my heartiest gratitude to our Vice-
Chancellor Prof. Dr. Abdur Rab. Again, I would like to express my heartiest
gratitude to our Dean, Prof. Dr. Khair Jahan Sogra & our Coordinator Mozaffar
Alam Chowdhury. I acknowledge my gratitude to Saima Rahman, Lecturer,
Department of CBA, International University of Business Agriculture &
Technology, for her helpful supervision, suggestion, guidance and encouragement.
I am very lucky for getting the opportunity to prepare this report under her
supervision and guidance. Without her instruction, it was impossible for me to
complete this report successfully. I would also like to give thanks, Mr. Sabbir
Rahmatullah (Operations Manager) of Dhaka Bank Limited at Konabari Branch, for
their kind concern and consideration regarding my academic requirements as my
external supervisor. Also, I express special gratitude to all the other employees of
Konabari Branch of Dhaka Bank Limited who have shared their knowledge
regarding banking with me.
Finally, I would like to convey my gratitude to my parents, teachers, friends and
many others who extend their support to prepare the report.

VII
 Table of Contents

Letter of Transmittal ................................................................................................III

Letter of Authorization............................................................................................ IV
Student Declaration ................................................................................................... V
Supervisor Declaration............................................................................................ VI
Acknowledgement ................................................................................................. VII
Executive Summary .............................................................................................. XI
1. CHAPTER ONE: INTRODUCTION .........................................................1
1.1 Background.....................................................................................................2
1.2 Objectives of the report .................................................................................3
1.3 Scope of the report .........................................................................................3
2. Chapter TWO: Organization ........................................................5
2.1 Background of Dhaka Bank Limited (DBL) ...............................................6
2.2 Mission & Vision ............................................................................................7
2.3 Corporate Governance ..................................................................................7
2.4 Top Management ...........................................................................................8
2.5 Organizational Hierarchy Of DBL ............................................................11
2.6 Products of DBL ...........................................................................................12
2.7 Financial and operational Performances of DBL .....................................14
2.8 Macroenvironment ......................................................................................24
2.8.1 Demographic .........................................................................................24
2.8.2 Technological .........................................................................................24
2.8.3 Economic ................................................................................................25
2.8.4 Physical ..................................................................................................26
2.8.5 Political ...................................................................................................27
2.8.6 Legal .......................................................................................................28
2.9 Microenvironment .......................................................................................29
2.9.1 Company ................................................................................................29
VIII
 2.9.2 Suppliers ................................................................................................30
2.9.3 Market Intermediaries .........................................................................31
2.9.4 Customers ..............................................................................................31
2.9.5 Competitors ...........................................................................................31
2.9.6 Publics ....................................................................................................32
3. Chapter Three: Department & work Assignment .....33
3.1 Name and Details of the Branch .................................................................34
3.2 Departmental Goals of DBL KNB branch ................................................34
3.3 Structure and Manpower ............................................................................35
3.4 Departmental Activities ...............................................................................37
3.5 Departmental Achievements .......................................................................38
3.6 Tasks and Duties Performed .......................................................................39
3.7 Working Environment.................................................................................41
3.8 Facilities and Constraints Faced ................................................................41
3.9 Lessons learned from the practicum ..........................................................42
4. Chapter Four: Research ................................................................44
4.1 Background of the study .............................................................................45
4.2 Problem Statement.......................................................................................46
4.3 Objectives......................................................................................................46
4.4 Literature Review ........................................................................................47
4.5 Methodology .................................................................................................49
4.6 Budget ...........................................................................................................52
4.7 Timeline/Schedule ........................................................................................52
4.9 Data Presentation and Analysis ..................................................................54
4.10 Findings .......................................................................................................59
4.11 Recommendations ......................................................................................60
5. Conclusion...........................................................................................................61
References ...............................................................................................................62
Appendix .................................................................................................................63

IX
 List of Figures
Figure 2.1 Organizational Hierarchy 11
Figure 2.2 ROA 15
Figure 2.3 ROE 16
Figure 2.4 P/E Ratio 17
Figure 2.5 Gross Profit Ratio 18
Figure 2.6 Cost to Income Ratio 19
Figure 2.7 Operating Income 20
Figure 2.8 Loans & Advances 21
Figure 2.9 Deposits 22
Figure 2.10 Total Assets 23
Figure 3.1 Branch Structure 36

List of Tables
2.1 Information of Dhaka Bank Limited 30
5.1 Description of Regression Components 50
5.2 Budget of the study 52
5.3 Timeline GANTT Chart 52
5.4 Hypothesis Development 53
5.4 Descriptive Statistics 54
5.6 Summary of Collinearity Statistics 54
5.7 Pearson Correlation Analysis 55
5.8 Model Summary 56
5.9 ANOVA Results 56
5.10 Coefficients of Determination 57

X
 Executive Summary
This report “An analysis on Effect of Budgeting process on the Budget Performance of Dhaka
Bank Limited” is a description and result of twelve weeks internship program at Dhaka Bank
Limited. The report is divided into four parts which bear the knowledge gathered from the
organization, the objectives of this report, learnings and duties done at the organization and
information about their departments, departmental goals, and activities, and finally the research
about the given topic.
Dhaka Bank Limited is a Private Commercial Bank (PCB) and their primary concern is to provide
their banking services to their customers and maximize wealth. However, this report covers the
background information of DBL and everything that is needed to know including Micro and Macro
environmental analysis. The bank is doing well comparatively and it is one of the most profitable
PCBs in Bangladesh. Its’ primary services are personal banking services, credit services, and
online banking services. Its’ financial and operational performance is overall good from the year
2015-2019 which is confirmed by doing the return on assets return on equity and other ratio
analysis for five years. Overall, the bank is doing great in its’ profit margin.
I got the opportunity to have the experience of this internship program at Dhaka Bank Limited
Konabari Branch. The branch has three formal departments, the General Banking department,
Credit department, and cash department. I was given the chance to work in every department for
a certain amount of time. The branch has in total of 24 employees excluding the supporting staff,
janitors, and guards. 6 of them are from the electricity bill payment booth. Most of the time at the
internship was spent in the General Banking department and a lot of general banking basic duties
were performed by me including filling out accounts forms and pay order forms, providing
receipts, etc. The valuable lessons that were learned were categorized into two parts. The
secondary lessons were most important for me because they were related to the experience and life
learning. More about these can be found in chapter 3 of this report.
The research part (Chapter 4) of this report covered the relationships between the aspects of the
budgeting process of Dhaka Bank Limited and its’ budget performance. The performance of DBL
from 2016 to 2019 was moderately good if not too well. The research seeks to find out if the
budgeting process has an impact on this performance or not through data collection and analysis.
The final results were analyzed using SPSS software and it showed that the aspects of the
budgeting process which are budgetary participation, budget feedback, budgeting sophistication,
and budgetary control are correlated with the budget performance. It showed that budgetary control
is not as effective on the budget performance as the other three aspects of the budgeting process.
The rest three aspects make a decent impact on the budget performance of Dhaka Bank Limited.
Overall, the budgeting process of DBL is positively and significantly effective on its’ budget
performance.

XI
 1. CHAPTER ONE:
INTRODUCTION

Page | 1
1.1 Background
This practicum report was made possible because of the internship opportunity given
by International University of Business Agriculture & Technology. By the reference
of the coordinator of the BBA program, I got the opportunity to be an internee at
Dhaka Bank Limited, KONABARI Branch. The bank is a public limited bank and
the main activities that the bank does are general banking activities, providing credit
services, and investments for wealth maximization. All the information about the
bank will be in chapter 2 of this report. However, I accomplished my internship
program from November 1, 2020, to January 31, 2020. The branch is situated at
BSCIC, Konabari, Gazipur. I was in supervision under Mr. Sabbir Rahmatullah who
is Assistant Vice President OF DBL and works as the operations manager at the
branch. He helped and supervised me from my starting day to all the way through
the end. Tasks were given to me by different officers. I got the privilege to work in
three departments there. Basic general banking activities, a little bit of credit
departmental activities and some cash department activities, and other miscellaneous
duties were done by me which will be discussed in chapter 3 of this report.
The research topic that I was working on during my internship period is “An analysis
on Effect of Budgeting process on the Budget Performance of Dhaka Bank Limited”
where my task was to find out how the aspects of the budgeting process of Dhaka
Bank Limited is effective on the budget performance. This topic was suggested by
the academic supervisor. As an intern working the branch, I tried observing the
banks’ activities, how well they perform at their duties and how their budget meets
the target. I took some verbal information about the banks’ budgeting process from
the operational manager at the branch. As they did fair enough performance and even
had some surplus in previous years, my reason for doing this research is how the
budgeting process is meeting the target and doing a moderately well performance.
The research will be discussed in chapter 4.
Hence, it is a privilege that I got the opportunity to do this practicum report and that
I got to do a three months internship. It wouldn’t have been possible if it was not for
the practicum. I completed this report in three months. Data for the report was
collected from Annual Reports of Dhaka Bank Limited., face to face conversation
with the employees, my own observation and knowledge, and through
questionnaires made by me for the research purpose.

Page | 2
1.2 Objectives of the report
1. Gathering knowledge and detailed information about the organization. Such
as the history of the organization, the products, the performances,
organizational structure, macroenvironmental and microenvironmental
analysis, etc. It is basically, learning myself and giving out the idea about the
organization on the report.
2. Learning about banking duties and environments at the internship
organization and having an experience of it. Describing the work assignment
that was given at various departments of the organization. Providing a clear
idea about the works and duties that I did there and the learnings.
3. Doing the research about the topic mentioned earlier. Here, the background of
the study, problem, and objectives of the study, literature review, total budget
for the research, methodology, timeline, etc. will be given. The findings will
be generated through hypothesis development.

1.3 Scope of the report

The report is based on my internship works and experiences. As I have mentioned
before the organization that I am working on is a private commercial bank and its
primary objective is providing its banking services to the customers and investing
for wealth maximization. The aim of this report was to gather as much knowledge
and information as possible by working on the branch of DBL and put them in the
report according to the structure. The departmental activities in the branch do not
directly match with the topic I’m working on. The knowledge that was gathered for
the topic was fully based on observation and conversation with employees. Each
branch of the bank makes an estimated budget at the beginning of every year. Some
perform good and some do not. The KNB branch however does tremendous
performance every year. Even at the pandemic situation of 2020, they did
comparatively good enough performance. Although the exact information about the
budget process and budgeting plan of each year could not be collected due to
confidentiality, an estimated parameter and percentage of the surplus for five years
was given. The research aims to find out how the budgetary participation, budgetary
feedback, budgeting sophistication, budgetary control of DBL play an effective role
in its budget performance.

Page | 3
I had to work five days a week and note down the duties that I’ve performed on
different departments of the branch. That helped me to make the report more
efficiently. There are some limitations to this report too. They are –
- Managing time for making the report was difficult
- In case of secondary data collection, most of the information or data were
confidential and not available
- Surveying was difficult as the respondents were busy most of the time. Had
a hard time finding a little bit of time for surveying the questionnaires.
- The distances of the organization made it much harder to find some time.
A lot of time was wasted on the journey every day.
- There was hardly any cooperation by the employees at the bank regarding
this report.
- As I am an amateur and doing such a study for the first time, it is possible
that this study won’t be one hundred percent perfect.

The report does not contain any contents that might be inappropriate and harmful,
the data that was collected is completely genuine and the report is only for the
practicum; not for any other purpose. The whole report is completely done by me.

Page | 4
 2. Chapter TWO:
Organization

Page | 5
2.1 Background of Dhaka Bank Limited (DBL)

Dhaka Bank Limited is the brainchild of a host of committed entrepreneurs and

dreamers of banking excellence. Dhaka Bank Limited was incorporated as a Public
Limited Company on April 6, 1995, under the company act 1994. On July 5, 1995,
Dhaka Bank Limited (DBL) started its operation as a Private Limited Company.
Dhaka Bank Limited (DBL) is now an admired provider of financial services and
has positioned itself as a strong brand in the mind of Customers. As a leading private
commercial bank in Bangladesh, Dhaka Bank Limited (DBL) eminence is backed
by quality products and services, superior technology, and highly motivated
personnel to realize the dream. Dhaka Bank Limited (DBL) is recognized for its
good governance practices, compliance with regulatory guidelines, and flexibility to
growing needs, and adaptability to the changing world.
Dhaka Bank Limited (DBL) was incorporated as a public limited company under the
Companies Act 1994. Dhaka Bank Limited (DBL) started its commercial operation
with an authorized capital of taka 1,000 million and paid-up capital of Tk. 100
million. The paid-up capital of the Bank stood at taka 1289 million as of 31
December 2006. The Shareholders Equity (capital and reserves) of the Bank as of
31 December 2006 stood at tk.2551 million, including the sponsor’s capital of Tk.
338 million.
In 2020, Dhaka Bank Limited (DBL) has 101 Branches including 3 SME Service
Centres, 56 ATMs, 20 ADMs, 2 Offshore Banking Units, 1 Kiosk, and 6 Branches
under Dhaka Bank Limited across the country and a wide network of correspondents
all over the world. In 2018, Dhaka Bank Limited opened a new branch at Sonargaon
Janapath, Uttara. The bank has plans to open more branches in the current fiscal year
to expand the network. The bank offers the full range of banking and investment
services for personal and corporate customers, backed by the latest technology and
a team of highly motivated officers and staff. In its effort to provide Excellence in
banking services, the bank has launched a fully automated phone banking service,
joined a countrywide shared ATM network, and has introduced a co-branded credit
card. A process is also underway to provide e-business facilities to the bank’s
clientele through online and home banking solutions.

Page | 6
2.2 Mission & Vision

Mission:
To be the premier financial institution in the country providing high-quality products
and services backed by the latest technology and a team of highly motivated
personnel to deliver Excellence in Banking.

Vision:
At Dhaka Bank Limited, they draw our inspiration from the distant stars. Their
vision is to assure a standard that makes every banking transaction a pleasurable
experience. Their endeavor is to offer you supreme service through accuracy,
reliability, timely delivery, cutting edge technology, and tailored solution for
business needs, global reach in trade and commerce, and high yield on your
investments. Their people, products, and processes are aligned to meet the demand
of their discerning customers. Their goal is to achieve a distinct foresight. Their
prime objective is to deliver a quality that demonstrates a true reflection of their
vision - Excellence in Banking.

2.3 Corporate Governance

The Board DBL comprehends that best governance practices and guiding rules are
key to financial stability and sustainability in the long term. To this end, Bank’s
corporate governance framework has evolved to embrace emerging industry best
practices and is founded on the highest standards of corporate conduct and ethics.
During the year under review, 26 Board Meetings were held to deliver decisions and
approval in various business areas. The Board areas of emphasis included strategy
formulation to meet the set goal related to core risk management, HR policy,
prevention of money laundering & terrorist financing, cybersecurity, and preserving
portfolio quality. Anti-Bribery and Anti-Corruption Policy will soon be formulated
and introduced.

Page | 7
Their trust is embedded into a belief that every financial engagement has to have a
sustainable end for the ultimate benefits of the community and their stakeholders.
As an entity infused with both financial and social objectives, their sustainability
considerations permeate through all aspects of our operations. Their triple bottom
line approach to value creation is reflected in our corporate governance practices
time and again. They pursue a goal to be ranked as one of the best corporate citizens
with their continued accountability for a rule-based banking system.

2.4 Top Management

Top Management Committee of DBL –

Page | 8
Executive Committee of Board of DBL –

Page | 9
Audit Committee of Board of DBL –

Page | 10
2.5 Organizational Hierarchy Of DBL
1.Managing Director
Chairman
2. Deputy Managing Director

3. Senior Executive Vice President

4. Executive Vice President

5. Senior Vice President

6. Vice President

7. Senior Asst. Vice President

8. First Assistant Vice President

9. Assistant Vice President

10. Senior Principal Officer

11. Principal Officer

12. Senior Officer

13.Officer

14. Probationary Officer

15.Junior Officer

16. Asst. Officer/Asst. Cash OfficerAsst. Officer/Asst. Cash Officer

17. Trainee Asst. Officer/Trainee Asst. Cash Officer

18.Telephone Operator

19. Trainee Telephone Operator

20. Supporting Staff

Figure 2.1 # Organizational Hierarchy

Page | 11
2.6 Products of DBL

• Liability Products:

• Savings bundled Products

• Deposit Pension Scheme
• Special Deposit Scheme
• Deposit Double Scheme
• Gift Cheque

• Asset Products:

• Home Loan
• Personal Loan
• Vacation Loan
• Car Loan
• Any Purpose Loan

• Services:

• Internet Banking
• SMS Banking
• Locker
• ATM Card
• VISA Credit Card
• Utility Bill/Tuition Fee Collection
• Letter of Credit
• Western Union and other money transfers like Placid, Rupali etc (Note:
they do not provide MoneyGram Services)

Personal Banking

Amongst Private Sector banks, Dhaka Bank has already made its mark in the
personal banking segment. The promotions like “BAISHAKHI OFFER”, a strategic
tie-up with Electra International Limited, distributor of Samsung brand products,
Page | 12
and “Freeze the Summer Campaign” a strategic tie-up with Esquire Electronics
Limited, distributor of Sharp/General Brand electrical appliances saw Dhaka Bank
experience more than a reasonable growth on the personal banking business in 2008.

Islamic Banking

Dhaka Bank Limited offers Shariah based Islamic Banking Services to its clients.
The bank opened its First Islamic Banking Branch on July 02, 2003 at MOTIJHEEL
Commercial Area, Dhaka. The second Islamic Banking branch of the bank
commenced its operation at AGRABAD Commercial Area, Chittagong on May 22,
2004. Dhaka Bank Limited is a provider of online banking services and any of its
clients may avail Islamic Banking services through any of the branches of the bank
across the country.

Dhaka Bank Islamic Banking Branches offer fully Shariah-based, Interest-free,

Profit-Loss Sharing Banking Services. Dhaka Bank Shariah Council is closely
monitoring its activities. Besides, Dhaka Bank is an active member of the Islamic
Banking Consultative Forum, Dhaka, and Central Shariah Board of Bangladesh.

Capital Market Services

Capital Market Operation besides investment in Treasury Bills, Prize Bonds, and
other Government Securities constitutes the investment basket of Dhaka Bank
Limited. Interest rate cut on bank deposits and government savings instruments has
contributed to a significant surge on the stock markets in the second half of 2004,
which creates opportunities for the Bank in terms of capital market operations. The
Bank is a member of Dhaka Stock Exchange Limited and Chittagong Stock
Exchange Limited.

ATM Card Services

• Cash Withdrawals – up to Tk.1 Lac per day

• Utility payments – T&T, Mobile phones, DESA, etc.
• Multi-account access
• Fund Transfers
• Mini Statements

Page | 13
 • PIN change
• Low cost,
• Time-saving
• East to monitor a/c position
• Easy to reach within every Residential & Commercial Location.
Credit Card Services

Dhaka Bank Limited brings you Your Everyday Credit Card in the shortest possible
time. We recognize that you need your card every day. That is why we have
developed processes to guarantee delivery of your card in just 7 days when you apply
for a fully sec used card; for an unsecured card, it will be ready in just 10 days.

Locker Services

A client could use the locker facility of Dhaka Bank Limited and thus have the option
of covering your valuables against any unfortunate incident. DBL offer security to
our locker service as afforded to the Bank’s own property at a very competitive price.

Online Banking Services

Dhaka Bank Limited introduces Net Banking and intends to maintain the lead with
enhanced facilities through this media. Client can get access to real-time account
information through the Internet. Transfer money from his/her account, utility bill
payment and more.

Internet Banking Services

Through Internet banking, the client can access the account to view and print the
balance account statement for the last 20 (twenty) transactions.

2.7 Financial and operational Performances of DBL

Financial performance analysis is used on a corporation or in any organization to

diagnosis the profitability and financial stability within the organization. It simply

Page | 14
shows the financial soundness of a company. Operational performance analysis
measures how different aspects of a company's finances are performing.
Here are some Financial and operational ratios of Dhaka Bank Limited.
Return on Assets (ROA) = Net Income/Total Assets

Year 2015 2016 2017 2018 2019

Return on 0.86% 0.77% 0.69% 0.54% 0.56%
Assets
(ROA)

Return On Assets(ROA)
1
0.86
0.9
0.77
0.8
0.69
0.7
0.54 0.56
0.6
0.5
0.4
0.3
0.2
0.1
0
2015 2016 2017 2018 2019

Return On Assets(ROA)

Figure 2.2 # ROA

We can see that DBL used to be much more efficient in utilizing its assets to generate
earnings back in 2015. The ratio starts to gradually slow down from 2015 to 2018.
It became from .86% to .54% in four years. However, it increased by 4% in 2019
which is .56%. So, Dhaka Bank needs to look into its asset utilization system and
management to make it better and efficient.

Return on Equity (ROE) = Net Income/Total Equity

Page | 15
 Year 2015 2016 2017 2018 2019
Return on 10.74 10.15 9.21 8.18 9.28
Equity
(ROE) %

Return On Equity(ROE)

10.74
10.15
9.21 9.28
8.18

2015 2016 2017 2018 2019

Return On Equity(ROE)

Figure 2.3 # ROE

The earnings against equity investment of DBL is satisfactory and acceptable in

terms of the ratio as we see on the graph. Though it started to gradually fall down
from 2015 to 2018 but it started to grow again in 2019 by 13% where the ratio is
from 8.18% to 9.28%. So, it can be said that DBL is going in the right and somewhat
efficient direction of managing their equity to establish a satisfactory return.
Although they need a little improvement in this area.

Price Earnings Ratio = Price per Share/Earnings per Share

Year 2015 2016 2017 2018 2019

Page | 16
 Price 8.57 8.40 10.63 8.91 6.52
Earnings
Ratio %

Price Earnings Ratio

12
10.63

10
8.91
8.57 8.4
8
6.52
6

0
2015 2016 2017 2018 2019

Price Earnings Ratio

Figure 2.4 # P/E Ratio

Despite steady growth in operating income and profit, a reduction in the P/E ratio is
caused by unfavorable market prices and lower EPS. The low price-earnings ratio
may indicate that the company is doing exceptionally well relative to its past trends.
The price-to-earnings ratio can also be seen as a means of standardizing the value of
one taka of earnings throughout the stock market.
In 2015 and 2016 stock prices were relatively low than the earnings caused by it than
2017. Again, it started to become lower and in 2019 the company did very well than
previous years.

Gross Profit Ratio = Gross Profit/Net Sales*100

Year 2015 2016 2017 2018 2019

Page | 17
 Gross 40% 48% 48% 45% 39%
Profit
Ratio

Gross Profit ratio

60%

50% 48% 48%

45%
40% 39%
40%

30%

20%

10%

0%
2015 2016 2017 2018 2019

Gross Profit ratio

Figure 2.5 # Gross Profit Ratio

A low gross profit ratio indicates that the company is doing a poor performance in
making profits against their sales. Here, we can see that DBL did a mediocre
performance in 2015. But it improved gradually and the best profitability
performance was in 2017. By the end of 2019, it became much lower than past 4
years. So, they need to improve their sales performance to gain a higher profitability
ratio.

Cost to Income Ratio

Year 2015 2016 2017 2018 2019
Cost to 47.77% 38.17% 44.49% 39.65% 43.56%
Income
Ratio
Page | 18
 Figure 2.6 # Cost to Income Ratio

The cost-to-income ratio moderate as the operating income grew to keep operating
expenses in check. The ratio gives a clear view of how efficiently the bank is being
run – the lower the ratio, the more profitable the bank. If the ratio rises from one
period to the next, it means that costs are rising at a higher rate than income. There
is an inverse relationship between the cost-to-income ratio and the bank’s
profitability.
From the past 5 years' performance, DBL did much efficiently in 2016. Currently,
their cost against income is relatively higher. So certain improvements are needed
in this area.

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 Operating Income (TAKA in Million)
Year 2015 2016 2017 2018 2019
Operating 6,709 8,739 9,376 10,877 10,800
Income

Figure 2.7 # Operating Income

Better and efficient management of the balance sheet resulted in higher operating
income. This is the amount of income a company generates from its core operations,
meaning it excludes any income not directly tied to the core business. An increasing
amount of operating income is seen as favorable because it means that the bank's
management is generating more revenue.
According to figure 2.7, Operating income kept rising from 2015 to 2019. Although
in 2019, operating income is slightly lower than the previous year but still doing
good.

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 Loans & Advances (TAKA in Million)
Year 2015 2016 2017 2018 2019
Loans & 117,840 113,689 154,017 180,626 195,635
Advances

Figure 2.8 # Loans & Advances

Year on year 8.31% growth in loans and advances emphasizing quality and balance
sheet growth. Concentrating on the three main categories i.e. short term, medium-
term and long-term loan, the bank was able to pool up different categories of
customers over the year and increase its loans and advance, some of the
subcategories of loans are fluctuating. The percentage of lending has gradually
increased with the growth of the bank.
The bank’s loans and advances keep growing every year which is a positive sign for
DBL. This helps the bank grow further and shows that more customers are taking a
loan from DBL and it is gradually becoming trustworthy and reliable.

Deposits (TAKA in Million)

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 Year 2015 2016 2017 2018 2019
Deposits 139,068 157,162 170,035 197,189 204,530

Figure 2.9 # Deposits

Balance sheet growth is well supported by deposit growth which indicates the
confidence in the bank and also ensures the together-ness of stakeholders. Deposits
are a crucial and very cheap source of funding for banks, which make money by
lending to their customers at higher rates than their cost of funding. So, the name of
the game is to keep “deposit costs” down while attracting enough deposits to lend
out.
The growth of deposits over the year in DBL shows that more customers are
interested to deposit their money in this bank which means its customers are
increasing. It helps the bank to invest more and increase their profitability.

Total Assets (TAKA in Million)

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 Year 2015 2016 2017 2018 2019
Total 176,362 202,197 229,453 273,276 285,009
Assets

Figure 2.10 # Total Assets

Consistent growth in the balance sheet at 10% CAGR since 2015. Assets earn
revenue for the bank and include cash, securities, loans, and property and equipment
that allows it to operate. The asset is something of value that is owned and can be
used to produce something.
Assets growth in DBL throughout the past five years is tremendous. It allows them
to utilize more assets and increase their profitability ratios and return on assets. If
the bank keeps on operating at this rate, its growth will be kept on increasing in the
upcoming long-term period.

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2.8 Macroenvironment

External Environment Analysis

2.8.1 Demographic

The maximum number of employees of Dhaka Bank Limited is from the Home
country. Where 62% of the employees are male and the remaining are female.
The age structure of employees in DBL is the following:
- 18 to 25 (10%)
- 26 to 30 (10%)
- 31 to 45 (60%)
- 46 to 60 (20%)
The educational requirements are given below:
- HSC graduate at least for supporting staff
- Bachelorette in finance or accounting major for assistant training officer
- MBA for officer and senior officer
- The accomplishment of Chartered Accountant diploma for being a
member of the audit committee

2.8.2 Technological

Technological evolution in DBL –

The world witnesses an information and technology revolution. This revolution has
touched every aspect of people’s life including banking. Technology has introduced
new ways of delivering banking services and products to the customers, such as
ATMs, and Internet Banking (IB). Hence, banks have found themselves at the
forefront of technology adoption for the past few years. These changes and
developments in the banking industry have impacts on service quality, future of the
banking activities, and consequently, its continually competitive ability in the market
since going along with technology is one of the most important factors of economic
organization’s success in general and banks in particular. It motivates banks to spend
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more on technology and information to achieve maximum returns and attract a large
number of clients.
The bank has been using a high-performance automated core banking software and
e-mail for intra-bank official correspondence where no more manual banking is
required. With a view of reducing the usage of hard copy statements as well as to
popularize paperless banking, Dhaka Bank, of late, introduced e-statements, M-
Banking, Internet Banking, ATM, and ADM. Through e-statements, the client can
view, download or print an electronic version of the statement that looks just like the
paper version. Dhaka Bank is also planning to introduce Solar power ATM operation
on a test basis. Dhaka Bank has been using twenty-first century’s technology
VIRTUALIZATION for Datacenter Server & Application. With the help of VM
server Administration, scalability and recourse management have improved
tremendously. Also, the cost of power, cooling, space has been reduced significantly.
Dhaka Bank also uses Electronic Fund Transfer (EFT), Direct Banking through
Online banking system, BKASH distributor payment collection, etc.
Improvements in Technological aspects –

DBL uses technological improvements as their advantage and uses it to manage GB

and Credit line works much more efficiently. So, the bankers become more
ergonomic.
DBL has improved its software and communication system for anti-hacking agenda.
So there fewer scams and frauds than before and they are making more profit by
using it.
Mobile Banking app Dhaka Bank Go provides so many banking facilities online. It
is much easier and time-saving.

2.8.3 Economic

Continuation of strong GDP growth and expansionary monetary policy:

Reducing the cost of the fund might lead to a liquidity crisis at least for a short period
of time unless government funds are made available to private banks. On the positive

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side, a single-digit interest rate might prove to be vital for generating more private
level investment, especially in the economic thrust sectors.
DBL makes a huge deal in the credit area. Their SME & Retail loan deals make them
be on one of the top banks in Bangladesh.
Exchange rates:
Exchange rates also affect Banks globally stable currencies such as the US dollar
impact other currencies, spending habits, and inflation rates in other countries
DBL uses the interconnected network to stabilize deposits. They use exchange rate
change as an opportunity
Interest rates:
The interest rate may rise and result in increased inflation.
The bank thrives on getting trusted and loyal customers for borrowings and giving
out loans. Currently, the Highest FDR rate of DBL is 7.75% for four months and Tk.
Up to 5 crores which are applicable only for retail customers.

2.8.4 Physical

Increasing global focus on promoting green & environmentally-responsible

businesses and sustainable financing:
There has been a sharp increase in regulatory focus on sustainable financing. A
separate refinancing fund earmarked by the Central Bank for green financing offers
a good window of opportunity to strengthen our green financing activities.
DBL uses a technological and systematic approach so that there would be less use
of paper.
Waste management in the financial sector:
Consumers can apply for credit cards online and have many of their Banking
questions answered online or by phone. Thus, reducing individual environmental
footprints.
Dhaka Bank keeps on participating in waste management activities. They try to
make as little waste as possible.
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Improved standard of living and access to information:
The rising middle-income group will be the driving force to increase local
consumption. Approximately 67% Middle income groups are salaried, and with
rising education levels and come from younger demography, and have rising
lifestyle aspirations deeply rooted in cultural influence, innovation, and
experimentation.
DBL has improved on reaching out to every social group of people as their customers
by using varieties of communication techniques. They are trying to open branches
in every corner of the country.

2.8.5 Political

Government policy & political stability:

Government laws affect the state of the Banking sector. The government can
intervene in the matters of Banking whenever, leaving the industry susceptible to
political influence.
Dhaka Bank management is working on the stability of political influence and go
according to the policies. It complies with the corporate governance policy.
Policy continuation on developing infrastructure:
A prolonged period of political stability translates into business growth and
economic prosperity. This situation is encouraging for new entrepreneurial
initiatives and expansion projects from existing enterprises. Public investments are
going to infrastructural development projects and improved private investment is
anticipated.
Dhaka Bank focuses on quality improvement and implementing infrastructure. They
try maintaining and continuing the policies
Taxation & trade restriction:
Due to governmental activities, investors will have a conservative approach. Loans
and Advances will show static growth. In addition, there may be a liquidity crisis.

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Dhaka Bank plays a vital role in the taxation system given by the Government by
lending in huge amount and helping out the political sector to improve the structures
and sectors in our country

2.8.6 Legal

Improvements made towards regulatory compliance and control:

Financial institutions are, understandably, subjected to greater scrutiny by the
regulators to ensure the safety of the deposits made by the general public.
Dhaka Bank has a strict legal regulatory process to ensure as safeness as possible to
the customers' deposits.
Anti-trust law in Banking industry and overall, in the country as like
Discrimination law, Copyright, Patents, and Intellectual property law,
Employment law:
The Banking industry follows strict laws regarding privacy, consumer laws, and
trade structures to confirm frameworks within the industry. Such structures are
required for Customers in the allocated country and international users.
Dhaka Bank follows all the legal policies and regulations related to Banking ethics.
As mentioned before, the bank uses anti-hacking criteria in their technology to get
rid of fraud and hacking.

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2.9 Microenvironment

Internal Environment Analysis

2.9.1 Company

Registered Name Dhaka Bank Limited

Legal Status Private Limited Company

Logo

Acronyms DBL
Motto Excellence in Banking
Category Commercial
Type Private
Origin Local Bank
Date of Incorporation April 6, 1995
Commercial Operation July 5, 1995
Number of Branches 106
Districts 31
Code 085
SWIFT CODE DHBLBDDH
Stock Code DHAKA BANK- DSE CSE
Fields of Activity • Deposits
• Corporate Banking
• SME Banking,
• Merchant Banking
• Remittance Services.

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Services • Consumer Banking
• Corporate Banking
• Offshore Banking
• SME Banking
• Deposits
• Loans
• Locker Services

Head Office 71, Purana Paltan Lane, Kakrail, Dhaka

Corporate Address 100 Motijheel Commercial Area, Dhaka
1000, Bangladesh.
Website www.dhakabankltd.com
E-mail Address info@dhakabank.com.bd
Telephone +880 2 9554514, 9571006-10
+880 2
Fax
9556584

Service Hours • Sunday: 10:00 am - 4:00 pm

• Monday: 10:00 am - 4:00 pm
• Tuesday: 10:00 am - 4:00 pm
• Wednesday: 10:00 am - 4:00 pm
• Thursday: 10:00 am - 4:00 pm
• Friday: Closed
• Saturday: Closed
Table 2.1 # Information of Dhaka Bank Limited
2.9.2 Suppliers

There are mainly two kinds of suppliers for the bank

- One is the depositors who deposit money to the bank which is used as
primary resource of capital.
- Another one is the employee who are the resource of labor.

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2.9.3 Market Intermediaries

The bank works as an intermediary by itself.

- It can be an intermediary by receiving deposits from the customers and
using it as a capital resource and by investing it they give a return of a
certain rate back to the customers.
- It works as an intermediary between a payer and a payee by offering
payment order service.
- It uses the credit card system and loan services to be an intermediary.
- It works as a middleman while shopping online from a certain website.
- The bank becomes a middle man between a buyer and a seller by using a
letter of credit
2.9.4 Customers

The person who has any kind of account in the bank is a customer. Customers can
be both literate and illiterate. Also, there are customers who take loans, consume
credit facilities and online banking facilities. Simply everyone who is eligible to
open a bank account and do any type of banking activity is a customer of the bank.
As Dhaka Bank Limited is a private commercial bank, they get customers as every
other private commercial bank would get.

2.9.5 Competitors

Every other Private Commercial Banks are the Competitors of Dhaka Bank Limited.
Such as AB Bank Limited, Bangladesh Commerce Bank Limited, Bank Asia
Limited, BRAC Bank Limited, Citizens Bank Limited, City Bank Limited,
Community Bank Bangladesh Limited.

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2.9.6 Publics

Currently, they don’t need any kind of advertisement to let the public know about
their bank and their services. But they do advertise about their products, especially
when there is a campaign for credit card services. The bankers call their eligible
customers and talk about their services with them.

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 3. Chapter Three:
Department & work
Assignment

Page | 33
3.1 Name and Details of the Branch

Name of the Organization : Dhaka Bank Limited

Branch : KONABARI
Address : Plot no. 146-147, BSCIC 1/E,
KONABARI, GAZIPUR,
BANGLADESH
Date of Joining : 01 Nov 2020
Date of completion : 31 Jan 2021
Organization supervisor
Name : Sabbir Rahmatullah
Designation : Assistant Vice President
Contact Number : 01710-924292
Contact information of the
branch office
Phone : 9298701, 9298821
Email address : konabari@dhakabank.com.bd

3.2 Departmental Goals of DBL KNB branch

As like every other private commercial bank, the goals of Dhaka Bank Limited are
similar in most ways. As we are specifically talking about the KONABARI Branch
of DBL, they have mainly three departments for banking activities and objectives.
They establish their goals and achievements through these departments. They are
General Banking Department, Credit Department & Cash Department. There should
have been another department called ‘The Foreign Exchange Department’ but
foreign exchange activities are not done at the branch, even if there are activities of
foreign exchange, the chances are very few. So, there is only one person in the credit
department who is in charge of foreign exchange activities. Hence, there are three
above mentioned departments in DBL KNB branch. Now let’s talk about their goals.

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 ∞ The officers in the general banking department try to pursue the customers
to facilitate their Deposit Pension Scheme service.
∞ Getting more people to open any kind of account at their branch.
∞ Gather or acquire as many deposits as possible.
∞ Talk with their existing customers about their FDR service, rates and make
them facilitate this service.
∞ The general banking officers thrive on maximizing customer satisfaction
∞ Invests the deposits and maximize wealth.
∞ The cash department maximizes its liquidity and minimizes the cost of
collection.
∞ The cash department collects damaged money and sends them to
Bangladesh Bank for exchange with the new ones.
∞ Provide Retail, SME & Corporate customers distinctive rates in Fixed
Deposit Receipt service.
∞ The credit department tracks the regular customers of the bank and goes
after them to sell their credit card, letter of credit, and loan services.
∞ Many corporate and SME customers look for a loan and they grab this
opportunity and make them take loans against mortgages at different levels
of interest depending on the loan amount.
∞ The ultimate goal of the branch is to save as much earnings as possible in
numerous ways (Example: strong budgeting) so that, the employees get
bonuses.

3.3 Structure and Manpower

There is a total of 24 employees in the DBK KNB branch including officers of the
electricity bill payment booth and excluding supporting staff. There are two
supporting staff, two janitors, three security guards and one gunman.

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The structure of the branch is given below –

Figure 3.1 # Branch Structure

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3.4 Departmental Activities

As mentioned earlier DBL KNB branch has primarily three departments

- General Banking Department
- Credit Department
- Cash Department
General Department Activities:
ῼ Opening Savings, Current, Salary accounts
ῼ Clearing Checks
ῼ Cash Remitting by Pay Order, Demand Draft, Telegraphic Transfer
ῼ Receiving Deposits
ῼ Opening a DPS and FDR
ῼ Online banking activities
ῼ Online Payment activities (University tuition fee payment, Bill payment)
ῼ Advertising their services (Various kinds of deposit schemes)
ῼ Record Transactions
ῼ Remind customers if they have any due on monthly DPS
Credit Department Activities:
ῼ Lending funds against mortgages
ῼ Providing Credit & Debit Card facilities
ῼ Providing Personal loan, Car loan, Home loan, Agricultural loan
ῼ Import & Export financing
ῼ Works as a middleman between a buyer and a seller
ῼ Giving bank guarantee
ῼ Providing Cash Credit facility
ῼ The Sr. Officer in the credit branch oversee budgeting of the branch and
acts accordingly
Cash Department Activities:
ῼ Receive bills, payments, deposits liquid money and also provides when
needed
ῼ Locker & Vault Management
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 ῼ Preparing Cash Memo
ῼ Maintaining the vault book
ῼ Registering Cash Balance
ῼ Debiting money
ῼ Receiving Vouchers after clearance
ῼ Receiving torn or damaged money and exchanging them.
ῼ Providing overall accounts and cash activities
Although there is no formal Operations Division or Department, operational and
managerial activities are done by the Manager and second manager. The Second
Manager is the Operational Manager. Besides giving signatures and clearings of
remittance services, the Operational manager does miscellaneous stuff like looking
after internees, participating in budgeting, being in contact with the head office and
other branches, hiring temporary staff, etc.

3.5 Departmental Achievements

Achievements of GB:
o The GB officers get commissions based on how many more deposits did they
accomplished.
o The more deposit the more investment
o GB helps in maximizing wealth
o Uses electricity bill and other bills as an opportunity for investment
Achievements of Credit:
o Distinct rates in loans make the branch more profitable
o Providing utter customer satisfaction made their branch attractive to the
customers.
o The Credit Branch almost holds up the branch by their intense profit-making
contribution.
Achievements of Cash:
o Keeps the branches liquidity as much as possible

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 o Their combined system service helps customers to get their service as early as
possible. That way, more customers could get services in a day and this
indicates positive remarks for the branch.

3.6 Tasks and Duties Performed

During my twelve weeks internship at Dhaka Bank KonaBari Branch, I spent seven
weeks working in the General Banking Department, Three weeks at Credit
Department, and the remaining two weeks at the Cash department. I did both
departmental duties and other secondary duties given by the manager and
operational manager. So, I can categorize the tasks and duties performed during the
internship into two. 1. Departmental Duties 2. Miscellaneous Duties.
Departmental Duties:
General Banking (7 weeks) –
i. Savings account form fill up. Although many people fill their own forms, there
were plenty of people who did not know how to write or fill up the forms and
did not know the procedures. So, I had to fill them up and let them know about
the procedure.
ii. Had to collect the necessary stuff for opening a savings account. The things
that are needed are two passport size lab printed photo of the account holder,
one for the nominee, the account holders original NID card and nominee’s
copy of the NID card, electricity bill receipt, if the account holder’s earnings
come from a job, then job ID card and if he/she does business then trade
license.
iii. Had to fill up the pay order slip for the customers.
iv. Some customers came and wanted to know about the FDR rate. So, I had to
discuss about it with them.
v. Giving out deposit receipts to the customers
vi. Writing cheques and vouchers for some customers
vii. Sometimes I had to call customers to let them know that their DPS has due
and they have to pay up as soon as possible.

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viii. Had to provide ATM cards and take signs from whoever took that and record
that on the ATM registry book.
ix. At the very end of my duties at the General Banking Department, I had to find
out from a logbook that how many ATM cards came to the branch yet and
how many did not. I had to report them to the GB officers.
x. Helping out customers in various general banking activities. Such as giving
out forms, answering any sort of general banking question.
xi. Writing letter for dormant customers.
Credit Department (3 weeks) –
i. Most of the time I spent my time filling up the letter of undertaking for the
customers.
ii. There was a campaign for credit card facilities which includes some plans
such as Gold, Diamond, and Platinum. So, I had to call more than 40
customers in two weeks and talk about the credit card campaign. I had to tell
them, why they should use the credit card facility and why they should choose
Gold or Platinum plans. Out of all the duties I did during my internship, this
was the hardest job for me.
Cash Department (2 weeks) –
i. There were cheques from the past3 years which were not orderly. So, I had to
sort them out according to the dates. It took me whole 5 days to do the job.
ii. The remaining one week I spent my time taping up and sorting out the torn
and damaged money along with some cash officers.
Miscellaneous Duties
i. The second manager once gave me a file that had all the customers'
transactions with the bank. I had to find out which transactions are more than
Tk. 5,00,000
ii. The manager once gave me a list (in Bengali) of customers who had due on
their electricity bill from GAZIPUR POLLI BIDYUT. I had to make an MS
Excel file and put all the information on that.

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3.7 Working Environment

The working environment at DBL KNB branch was fair enough in my opinion.
KONABARI is actually a rural area and the exact place where the bank is situated
is quite noisy and unhealthy. But the internal office environment is quite good.
There are no separate rooms, just one big space. Departments are parted by Tables
and partition woods and the Manager had a separate room bounded by glasses. There
are a dining space and a kitchen. At the very end, there is a storehouse and beside
the dining space, they have a prayer room.
Working at DBL KNB branch was relaxing because there was not too much
pressure. In every department I went through, people were nice and helpful. The way
they. The management system in each department was appreciable. In the cash
department, the Principal Officer oversees every other cash officers. The General
Banking is controlled by the second manager and the credit department is controlled
by one of the senior officers. There is no female employee in the branch. There were
very few moments of conflicts between employees. The security system is too good,
there are three guards and one gunman. Day to day works and duties are run
smoothly by the bankers. Overall, it can be said that DBL KNB branch has a fairly
workable internal environment.

3.8 Facilities and Constraints Faced

Facilities –
• The working environment was pretty much relaxing which was a plus point
for me.
• I was paid Tk. 4000 per month which sufficed as a daily journey expense.
• The manager let me use a PC which was unused at the credit department.
• The employees were helpful. I asked a lot of questions and messed up my
duties many times and they corrected it.
Constraints –
• The primary constraint was their confidentiality of giving out information. It
was pretty much hard to get the information for the practicum report from
them

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 • The branch was too far away from my home. From going there to coming
home cost more than three hours every day which was a big waste of time
and energy.
• It was hard to survey my research questionnaires because according to my
topic my respondents were the employees of DBL.
• The tenure was short and as I have mentioned earlier there was waste of time
for long distances. So, all the activities needed to do good research was not
possible.
• As I have a lack of experience in the corporate sector, it took me a lot of time
to cope up with the situations and ongoing activities.

3.9 Lessons learned from the practicum

This internship program allowed me to experience working in a corporate

environment for the very first time. So, there are a lot of things that I have learned
from this practicum. Although I learned basic things about banking, the important
learnings for me are the ones that I have learned from the experience. I would
categorize my learnings into two.
1. Primary Learnings
2. Secondary Learnings
Primary Learnings –
These are the learnings about the basic stuff about general banking and other
departmental duties.
a. The basic duties of GB. Such as accounts opening and all the forms and
activities.
b. Learned about their pension schemes like Deposit, Lakhpoti, Kotipoti
c. Gained a little bit of experience in marketing by both GB and the Credit
department.
d. Learned pay order receipt writing.
e. Learned about credit department. They give loans against mortgage and a
certain interest rate.
Secondary Learnings –
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I think the followings are the learnings that matter to me most. It wouldn’t have been
possible if it wasn’t for this internship opportunity.
1) Professional experience: Working in a corporate environment taught me how
to be professional little by little. My behavior, attitude, communication skills
significantly changed over three months.
2) Critical Thinking: Had improvements in the way of thinking. I can label it as
Critical Thinking. There were times while I was working on something and
had no idea what to do and everyone was busy so I could not ask anyone. That
time I developed this skill, utilized my own knowledge by thinking deeply
about the matter.
3) Punctuality: Out of those twelve weeks I was late at work only one day
because of some issues. I tried my best to be on time at work.
4) Time management: I taught myself during the internship period about how to
manage time. Because the tasks that were given to me had to be finished
within a certain time.
5) Ethics at work: In my observation, everyone at the branch was ethical at doing
their work, except one or two sometimes. That taught me to be ethical in the
work environment.
6) Capabilities and Incapacities: Throughout the internship period I found a lot
of things that I was not or still am not capable of. My communication skill
was one of the biggest weaknesses. Anyways, I thrive on making myself
capable of those things. Most importantly I learned a lot about myself during
this period.

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 4. Chapter Four:
Research

Page | 44
4.1 Background of the study
Budgeting is a crucial exercise. Without it, a firm or business cannot achieve much
(Babalola, 2008). Every firm, business, enterprise, and banks need budgeting to get
a sophisticated result in accordance with their goals and objectives. According to the
annual report 2019 of Dhaka Bank Limited, it can be seen quite clearly that DBL is
doing moderately well achieving its short-term goals and objectives. Although it had
some ups and downs in recent years it still managed to be on a linear pace throughout
the years. The budgeting process of Dhaka Bank Limited is done by the upper &
executive management committee but they involve everyone in the process. For
every branch and sub-branch, they fix a certain amount for the whole year depending
on the economic condition. Not every branch of DBL is profitable but most of them
are. For example, the DBL KNB branch is one of the most profitable branches.
According to the operations manager of the KNB branch, the branch had surpluses
from the year 2017 to 2019. The respective percentages of surpluses from 2017 to
2019 1.2%, 2.3%, and 1.5%. The exact amount of budget they set for each year is
unknown because of confidentiality. But it is interesting to figure out the reasons
behind their performance. Every organization has different ways of the budgeting
process. Here, for this research purpose, four major aspects of the budgeting process
were considered. They are Budgetary Participation, Budgetary Feedback, Budgeting
Sophistication, and Budgetary Control. Dhaka Bank Limited does their budgeting
process by these aspects which include the participation of all bankers, their
involvement, rights of everyone’s opinions, planning, approval, feedback, efforts of
the management team, long-term and short-term plans, goals, and objectives,
monitoring policy, controlling the budget by head departments, implementing the
budget, corrective measurements by the managers, etc. These aspects of the
budgeting process determine how well the bank will perform. As it was observed
and data were collected, it is known that DBL is doing well if not very well in their
budget performance. A well-established budgeting process can cause a good
performance. Here, in this research, it would be found out how the aspects of the
budgeting process of DBL are effective on its’ budget performance.

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4.2 Problem Statement
Dhaka Bank Limited is doing pretty well and satisfactory in its budget performance
in the past four years so, this research seeks to know how is it doing it by analyzing
the effect of the budgeting process on the budget performance of DBL.

4.3 Objectives
General Objective: The study is done to determine the effect of the budgeting
process on the budget Performance of Dhaka Bank Limited.
Specific Objectives:
1. To establish the effect of Budgetary Participation on the Budget Performance of
Dhaka Bank Limited.
2. To examine the effect of Budget Feedback on the Budget Performance of Dhaka
Bank Limited.
3. To investigate the effect of Budgeting Sophistication on the Budget Performance
of Dhaka Bank Limited.
4. To assess the effect of Budgetary Control on the Budget Performance of State
Dhaka Bank Limited.

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4.4 Literature Review
Budgeting
Budgets reflect the financial implication of business plans, identifying the amount,
quantity, and timing of resources needed (Shields and Young, 1993). They form
benchmarks by comparing actual results with budgeted plans and taking corrective
actions if necessary (Sharma, 2012). According to Sharma, 2012 budgeting is a
financial plan for a company and it is compared to the actual result. Budgets do
influence the behavior and decisions of employees by translating
business objectives, and providing a yardstick against which to assess performance
(Kamau, Rotich, & Anyango, 2017). The behavior and work ethics of an employee
depends on the budgeting process of an organization. It generates a good
performance depending on its’ goals and objectives.
Budgeting allows a goal and a standard of performance to be established with
subsequent comparison of actual results with the created standard. It requires those
involved to be forward-looking rather than looking back (Hope & Fraser, 2013). The
budgeting process always requires people who can look into the future and make
plans according to it. Just like being flexible with trends and time.
Budgetary Participation
Budgetary participation is the process by which managers whose performance
evaluation is at least in part budget‐based are involved and are influential in the
setting of those budgets (Brownell, 2015). Managers who are at the executive level
or at least have the credibility to participate in budgeting need to be involved and
give their utmost effort to the budgeting process. Just like in Dhaka Bank Limited,
Budgetary participation is one of the major Budgeting Process aspects. Well-
established and well-organized participation elevates the performance in the
budgeting process.
Budget Feedback
The budgeting process is incremental, built on a historical base, and operating on
accepted notions of fair shares, in which decisions are fragmented, made in sequence
by specialized bodies, and coordinated through repeated attacks on problems and
multiple feedback mechanisms (Wildavsky, 1986). Budget feedback is the
fundamental aspect of the budgeting process. The management and budget holders
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of an organization utilize the approved budget based on the plan. Sometimes it
doesn’t work or it backfires so, they need to give feedback to correct the problems.
Budgeting Sophistication
Firms using sophisticated budgeting techniques tend to succeed and accomplish
objectives more than using other approaches.
Firms using sophisticated capital budgeting techniques should theoretically
perform better than firms using naive models such as the payback period or
accounting rate of return (Haka, Gordon, & Pinches, 1985). A firm must have
short-term & long-term budget plans and clear objectives to be sophisticated.
Budgetary Control
Budgetary control can be viewed as a system of controlling cost which embraces the
preparation of a budget, coordinating the department and establishing responsibility,
comparing actual performance with budgeted, and acting upon results to achieve
maximum profitability (Brown & Howard, 2002). There are basic stages in
budgetary control processes and they include a setting of pre-determined standards,
measurement of actual performance against pre-determined standards, and
corrective measures if necessary, to bring the actual performances in line with the
pre-determined standard (Egbunike & Unamma , 2017). Adequate control is very
essential to every organization be it individual or government-owned all over the
world. This is because if there is no adequate control of resources in the organization,
it will be practically impossible to monitor budgets. (Kamau, Rotich, & Anyango,
2017). To control the budget adequately managers must review the performance of
the budget, establish budget monitoring policies. Implement a new budget strategy
if the previous one backfires, take timely corrective actions.

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4.5 Methodology
Research Design
“An analysis on Effect of Budgeting Process on the Budget Performance of Dhaka
Bank Limited” is a quantitative research. This particular research uses a systematic
way of the survey and analyses data by hypothesis testing to figure out relationships
between given four independent variables and one dependent variable. The variables
are as follows,
Independent Variables Dependent Variable
1. Budgetary Participation
2. Budget Feedback 1. Budget Performance
3. Budgeting Sophistication
4. Budgetary Control

Sampling Technique
The sampling technique for this research is a non-probability sampling technique in
which Convenience Sampling was chosen. This sampling technique was chosen
because the employees or bankers of Dhaka Bank Limited were the respondents.
Because of the limitation of time, it was not possible to collect data from bankers
other than the KNB branch bankers. There are a total of 24 employees at that branch
excluding supporting staff. 18 bankers are from the branch and the remaining 6 are
from the electricity bill payment booth. Data was collected from all 18 bankers from
the branch and 3 officers from the booth. The sampling technique was totally based
on the availability of the respondents and in other words the researcher's
convenience.
So, the total number of respondents was 21.
Method of Data Collection
Most data were Primary data for this quantitative research purpose.
The secondary data was collected from the Manager of the KNB branch and the
Annual Report 2019 of DBL, also through observations. The secondary data is not
directly relevant to the ultimate findings and results of this research.
Data was collected by developing a five-point Likert scale questionnaire where each
independent variable had 3 to 5 questions. There were a total of 16 questions. The
Likert scale is as follows,
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 1. Strongly Disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly Agree
The questionnaires were printed out and were given to the respondents. The
respondents were the branch Manager, the Operations Manager, and all other
officers of the KNB branch.
Method of Data Analysis
After collecting the data, those were put into the IBM ‘SPSS’ Statistics Version 25.0
Software and produced descriptive statistics, frequencies, Pearson’s Correlation and
inferential statistics which were used to generate conclusions generalize the
population.
A multiple linear regression model was created to generate the significance level of
the effect of the budgeting process on-budget performance. The linear regression
model was as following,
Y = α + β1 H1 + β2 H2 + β3 H3+ β4 H4 + e
The description of components of a regression model is given below
Description of regression component
Y Budget performance of Dhaka Bank Limited

α Constant

H1 Budgetary Participation

H2 Budget Feedback

H3 Budgeting Sophistication

H4 Budgetary Control

β Coefficient Indicates the % of influence or effect on the dependent variable

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 Standard. Error The Standard. Errors are used to compute the confidence intervals and
e the p-values. Bigger sample standard error results in fewer exact
(wider) confidence intervals and lower statistical power.

P-Value The p-value is a probability that measures the evidence against the
null hypothesis. If the P-value is less than .05 or 5% then the null
hypothesis is rejected.

F- Value A sufficiently large F-value indicates that the term or model is

significant. F-value is used to calculate the p-value, which is used to
decide about the statistical significance of the terms and model

Significance F P-Value.

Multiple R This is the correlation coefficient. It states, how strong the

relationship is for the linear model. A value of 1 means a perfect
positive relationship and a value of zero means no relationship at all.
It is the square root of r squared.

R Square This is r2, the Coefficient of Determination. It states the number of

points that fall on the regression line. Here, 80-100% of the values
indicate the model is proper for interpretation and perfect variables
were chosen.

Table 5.1 # Description of regression components

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4.6 Budget

SL no. Items Amount (BDT)

1 Mobile bill and Internet 900
2 Transportation cost 3400
3 Lunch and Others 8000
4 Printing and photocopy 1200
5 Binding 800
Total 14,300 /=
Table 5.2 # Budget for the study
4.7 Timeline/Schedule

Weeks and Days

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th
Tasks Nov Nov Nov Nov Dec Dec Dec Dec Dec Jan Jan Jan
01 08 16 24 01 08 16 24 31 07 15 22-31
2020 2020 2020 2020 2020 2020 2020 2020 2020 2021 2021 2021

Observing
work place
and learning
Planning
and Topic
selection

Gathering
information

Data
collection

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Starting to
write the
report
Survey
question
developing

Conduct the
Survey

Research
writing

Making
Corrections

Table 5.3 # Timeline Gantt Chart

4.8 Hypothesis Development

HA is Alternative Hypothesis and H0 is Null Hypothesis.
HA Budgetary Participation of Dhaka Bank Limited has a positive
Hypothesis 1 effect on its’ annual Budget Performance.
(H1)
H0 Budgetary Participation of Dhaka Bank Limited does not have a
positive effect on its’ annual Budget Performance.

HA Budget Feedback of Dhaka Bank Limited has a positive effect on

Hypothesis 2 its’ annual Budget Performance.
(H2)
H0 Budget Feedback of Dhaka Bank Limited does not have a positive
effect on its’ annual Budget Performance.

HA Budgeting Sophistication of Dhaka Bank Limited has a positive

Hypothesis 3 effect on its’ annual Budget Performance.

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 (H3) H0 Budgeting Sophistication of Dhaka Bank Limited does not have a
positive effect on its’ annual Budget Performance.

HA Budgetary Control of Dhaka Bank Limited has a positive effect on

Hypothesis 4 its’ annual Budget Performance.
(H4)
H0 Budgetary Control of Dhaka Bank Limited does not have a
positive effect on its’ annual Budget Performance.
Table 5.4 # Hypothesis Development

4.9 Data Presentation and Analysis

Descriptive Statistics
Std.
N Range Mean Deviation Variance
Budgetary 21 1.25 4.1548 .38305 .147
Participation
Budget Feedback 21 1.50 3.9881 .39903 .159
Budgeting 21 1.00 4.1587 .37445 .140
Sophistication
Budgetary Control 21 1.20 3.8095 .31290 .098
Table 5.5 # Descriptive Statistics
Here, the average of Budgetary Participation is 4.154, Budgetary Feedback is
3.9881, Budgeting sophistication is 4.1587 and Budgetary Control is 3.8095. The
Standard Deviation is given to know how much data has been spread out from the
mean or average. Higher Standard Deviation means more spread of data. So, here
the Standard Deviations are 0.38305, 0.39903, 0.37445, 0.31290.

Model Collinearity Statistics

Tolerance VIF
Budgetary Participation .860 1.163
Budget Feedback .819 1.221
Budgeting Sophistication .938 1.066

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 Budgetary Control .988 1.012
Table 5.6 # Summary of Collinearity Statistics
Here the VIF is the Variance Inflation Factor. It determines the amount of variance
that has been inflated by detecting the degree of multicollinearity. If the VIF is
greater than 10 then it is a cause of concern. Here, none of the variables have VIF
greater than 10 so, there is no cause of concern.

Pearson’s Correlation Analysis

Correlations
Budget Budgetar Budget Budgeti Budgeta
Performa y Feedbac ng ry
nce Participat k Sophist Control
ion ication
Budget Pearson 1
Performance Correlati
on
Sig. (2-
tailed)
Budgetary Pearson .552 1
Participation Correlati
on
Sig. (2- .009
tailed)
Budget Pearson .670 .360 1
Feedback Correlati
on
Sig. (2- .001 .109
tailed)
Budgeting Pearson .246 .024 -.210 1
Sophistication Correlati
on
Sig. (2- .283 .919 .361
tailed)
Budgetary Pearson .329 .050 .061 .072 1
Control Correlati
on

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 Sig. (2- .145 .831 .793 .757
tailed)
Table 5.7 # Pearson Correlation Analysis

The Pearson Correlation was generated by using SPSS to determine the existing
relationship between the budgeting process and budget performance of Dhaka Bank
Limited. If the Pearson Correlation is positive then the variables are correlated with
each other. The positive and negative relations are indicated by 1 and -1. When the
Pearson correlation is .5 or more than it then it is assumed as a strong relationship.
If it is between .5 and .3 then the relationship is moderate. Less than .3 indicates a
weak relationship but still positive.
In table 5.6 it can be seen that how the variables are related to the Budget
Performance of Dhaka Bank Limited. The Pearson correlation of Budgetary
Participation, Budget Feedback, Budgeting Sophistication, Budgetary Control are
respectively .552, .670, .246, .329. The first two variables have a stronger relation
with Budget Performance. The third variable has a weak positive relation and the
fourth one has a moderate relation. Overall, the budgeting process of DBL has a
good correlation with its’ performance.
Hypothesis Testing by using Regression Analysis

Regression Analysis shows how the dependent variable influences the independent
variables. In this study, the hypothesis was developed by using the independent
variables to see their effectiveness on the dependent variable.
Model Summary
Model R R Square Adjusted R Std. Error of the
Square Estimate

1 .868a .753 .691 .11395

Table 5.8 # Model Summary

The model summary establishes how the data is fitted with the model equation. The
R2 was used to determine the power of predictivity of the study model and it is found
to be 0.753 or 75.3% of the variations on Budget Performance of Dhaka Bank
Limited is explained by budgetary participation, budget feedback, budgeting
sophistication, and budgetary control which leaves the remaining 24.7%. The

Page | 56
remaining is unexplained which means more studies should be done to establish the
other factors affecting the budget performance of Dhaka Bank Limited.

ANOVA Results
ANOVAa
Model Sum of df Mean F Sig.
Squares Square
1 Regression .633 4 .158 12.18 .000b
9
Residual .208 16 .013
Total .841 20
Table 5.9 # ANOVA Results
The probability or the p-value of 0.000 proves that the regression relationship was
highly significant in predicting how Budgetary Participation, Budget Feedback,
Budget Sophistication, Budgetary Control affect the Budget performance of Dhaka
Bank Limited. The F is calculated at a 5% significance level which is 12.189 where
F is calculated greater than the critical value of 2.5252. This proves that the model
was significant overall.
Coefficients of Determination
Unstandardized Standardiz t Sig.
Coefficients ed (p)
Model Coefficient
s
B Std. Beta
Error
1 (Constant) .761 .528 1.441 .169
H1: Budgetary .166 .072 .309 2.309 .035
Participation
H2: Budget Feedback .317 .071 .617 4.492 .000
H3: Budgeting .191 .070 .350 2.725 .015
Sophistication
H4; Budgetary .165 .082 .251 2.010 .062
Control
Table 5.10 # Coefficients of Determination
The model established for the study was,
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Y = 0.761 + 0.166 H1 + 0.317 H2 + 0.191 H3 + 0.165 H4
Hypothesis 1:
Keeping all other independent variables at zero a unit increase in Budgetary
Participation would lead to 0.166 increase in the budget performance. Where the
budget performance of Dhaka Bank Limited is Constant at 0.761. The relationship
was significant with the p-value. In table 5.9, the p-value for H1 is 0.035 which is
less than .05 or 5%. 0.035<0.05 indicates that the null hypothesis is rejected and
Budgetary Participation, as an aspect of the budgeting process is significantly
effective on the Budget performance of Dhaka Bank Limited.
Hypothesis 2:
Keeping all other independent variables at zero a unit increase in Budget Feedback
would lead to 0.317 increase in the budget performance. Where the budget
performance of Dhaka Bank Limited is Constant at 0.761. The relationship was
significant with the p-value. In table 5.9, the p-value for H2 is 0.000 which is less
than .05 or 5%. 0.000<0.05 indicates that the null hypothesis is rejected and Budget
Feedback, as an aspect of the budgeting process is significantly effective on the
Budget performance of Dhaka Bank Limited. Budget Feedback is the only aspect of
the budgeting process that is perfectly significant affecting the Budget performance
of Dhaka Bank Limited. Because the P-value is 0.000 which is a perfect significance.
Hypothesis 3:
Keeping all other independent variables at zero a unit increase in Budgeting
Sophistication would lead to 0.191 increase in the budget performance. Where the
budget performance of Dhaka Bank Limited is Constant at 0.761. The relationship
was significant with the p-value. In table 5.9, the p-value for H3 is 0.015 which is
less than .05 or 5%. 0.015<0.05 indicates that the null hypothesis is rejected and
Budgeting Sophistication as an aspect of the budgeting process is significantly
effective on the Budget performance of Dhaka Bank Limited.
Hypothesis 4:
Keeping all other independent variables at zero a unit increase in Budgetary Control
would lead to 0.165 increase in the budget performance. Where the budget
performance of Dhaka Bank Limited is Constant at 0.761. The relationship was not
quite significant with the p-value. In table 5.9, the p-value for H4 is 0.062 which is
greater than .05 or 5%. 0.062>0.05 indicates that the null hypothesis is accepted and
Budgetary Control as an aspect of the budgeting process is not significantly effective
Page | 58
on the Budget performance of Dhaka Bank Limited. Although it is not much
effective and the null hypothesis is already accepted, the insignificance of this aspect
of the budgeting process is not that much. 0.062 is only 0.012 or 1.2% greater than
5%. So, it cannot be entirely neglected.

4.10 Findings
Budgetary Participation
The study has established that the Budgetary Participation of Dhaka Bank Limited
has a positive, significant, and moderate strong effect on its’ annual Budget
Performance. It is found from the results that; budget holders give enough attention
to the participatory part of the budgeting process; the respondents have agreed that
the bankers are alerted and involved in the budgeting process and their opinions and
requests matter. It is proved that the bankers, stakeholders, and all departments were
involved in the budget follow-ups. Because of the involvement and taking
everyone’s opinion seriously, Dhaka Bank Limited did a good performance in their
budget.

Budget Feedback
The study found concerning the Budget Feedback that it has a positive and very
strong and significant effect on the performance of Dhaka Bank Limited. The
respondents have agreed that the management reviews the budget and makes
adjustments according to the employees’ advice. Employees are informed of their
department's budget and the changes that have been made as a feedback mechanism.
The budget holders utilize their budget according to the plan. The management team
takes corrective measures to make changes in the budget and implement them after
feedback.
Budgeting Sophistication
The study has established that the Budgeting Sophistication of Dhaka Bank Limited
has a positive and significant and quite strong effect on its’ annual Budget
Performance. The results say that the organization has short-term and long-term
budget plans. The budgets have clear goals and objectives and most employees do
not find any problem understanding the budget of the branches and departments.

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Budgetary Control
Although other aspects of the budgeting process did pretty well in affecting the
budget performance, Budgetary Control failed here and it does not have a positive
and significant effect on the performance of Dhaka Bank Limited. The study found
that the management holds the meetings for reviewing the performance, monitoring
policies, and controlling of budget activities are done moderately good but not good
enough to affect the performance of budget. Also, the managers lack in taking timely
measures and actions, and the organizations’ monitoring system of the budget
implementation is not quite effective.

4.11 Recommendations
Dhaka Bank Limited is doing pretty well on its’ budget performance. Three out of
four aspects of the budgeting process affect performance.
Dhaka Bank Limited could take some actions regarding the Budgetary Control.
Monitoring Budget spending should be more ergonomic. Managers need to monitor
and control the spending of the budget at respective branches. Budget
implementation needs more monitoring and corrections. The managers need to take
timely and corrective actions on controlling and implementing the budget. If they
could take these problems seriously and take corrective actions the overall
performance of Dhaka Bank Limited would be splendid.

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 5. Conclusion

This report covers the whole internship experience, the duties, the learnings, and
observations, gaining knowledge about the organization and departments, and
importantly the research study. The study sought the relationship between the
aspects of the budgeting process of Dhaka Bank Limited and its’ performance.
Dhaka Bank Limited did pretty well comparatively. Most of the branches were
profitable. The study found that the aspects of the budgeting process which are
Budgetary Participation, Budget Feedback, Budgeting Sophistication, and
Budgetary Control had an impact on the budget performance of Dhaka Bank
Limited. Each result established that the bank is doing pretty well in its’ performance
of budget except one. Although Budgetary Control is not as effective as the other
ones, still it did moderately well by reviewing the budget performance regularly and
implementing the budget monitoring policy. If only the bank gives more attention to
Budget Control, the bank will do a terrific performance in the budget in the future.
The surpluses that some of the branches get at the end of the year is not for no reason.
If the bank is compared with some of the other private commercial banks, DBL is
one of the best performers if not the best. Most of the success in budget performance
comes from Budget Feedback. DBL is doing great in this area and it elevates the
overall performance. To keep the performance and make it better the bank should
stick to it. Maximum data and information for this report were collected from Dhaka
Bank Konabari Branch. The branch is one of the most profitable branches in Gazipur
district. The idea of doing the study about this topic was generated because of the
environment and ethics of that branch. As all of the data was collected from the KNB
branch, it must be mentioned that how exceptional the branch is. Other branches
who still struggles in performing well need to follow the regulations and aspects
followed in that branch.

Page | 61
References
1. Babalola, R. (2008). Restructuring of National budget, Key note address for
appropriation Finance and Public Accounts Committee of senate and House of
Retreat Representatives. Kaduna. Retrieved March 10, 2008
2. Brown, J. L., & Howard, L. R. (2002). Principles and practice of management
accounting. London: MacDonald and Evans Ltd.
3. Brownell, P. (2015, Januray 21). Budgetary Participation. Volume 1. Accounting.
4. Egbunike, P. A., & Unamma , A. N. (2017). BUDGETING, BUDGETARY
CONTROL AND PERFORMANCE EVALUATION: EVIDENCE FROM
HOSPITALITY FIRMS IN NIGERIA. pp. 23-29.
5. Haka, S. F., Gordon, L. A., & Pinches, G. E. (1985). Sophisticated capital budgeting
selection techniques and firm performance. Readings in Accounting for
Management Control. Retrieved from https://doi.org/10.1007/978-1-4899-7138-
8_24
6. Hope, J., & Fraser, R. (2013). Beyond budgeting: how managers can break free from
the annual performance trap. Harvard Business Press.
7. Kamau, J. K., Rotich, D., & Anyango, W. (2017). Effect of budgeting process on
budget performance of state corporations in Kenya: A case of Kenyatta National
Hospital. International Academic Journal of Human Resource and Business
Administration,, pp. 255-281.
8. Pike, R. H. (1984, June). Sophisticated Capital Budgeting Systems and Their
Association with Corporate Performance. Managerial and Decision Economics,
5(2), 91-97.
9. Sharma, P. (2012). Performance Measurement in NGO’s. The Management
Accountant.
10. Shields, M., & Young, S. M. (1993). Antecedents and consequences of participating.
Journal of Management Accounting Research, 5,265-280.
11. Wildavsky, A. B. (1986). Budgeting:A Comparative Theory of Budgetary Process.
Transaction Publishers.
12. Dhaka Bank Limited. (2019, December 31), Annual Report

Page | 62
Appendix

Report on Academic Supervisor`s Visit to practicum Organization

Name of Academic Supervisor: Saima Rahman Program: BBA Date/Time: 01/03/2021
Name of the Intern: Shaymon Chaudhury ID: 17102205 Semester: Fall-2020

An analysis on Effect of Budgeting process on the Budget

1.Title of the Report/Project
Performance of Dhaka Bank Limited

Name: Dhaka Bank Limited Konabari Branch

2. Organization Phone: 9298701, 9298821

Email: konabari@dhakabank.com.bd

Name: Mr. Sabbir Rahmatullah

3.Workplace Supervisor Phone/Cell: 01710-924292

Email: sabbir.rahmatullah@dhakabank.com.bd

4. Designation of the Intern at Workplace Intern

1. Savings and Current account form fill up

2. Pay-order writing

3. Writing letter for dormant customers GB department and letter

5. Major activities of the intern at Workplace of undertaking for credit department

4. Collecting things needed for account opening from customers

5. Giving out ATM card & Cheque books newly arrived to the
customers and listing them on registry book

Punctuality: Very Good!

6. Performance of the intern at Workplace Work: Very Good!

Behavior: Very Good!

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 Company`s Code of Conduct: Maintained well

7. Remarks and Observations of the

Overall, very satisfied with the intern.
workplace supervisor (if any)

Name:

Designation:
8. Meeting (if any) with the higher authority
at workplace of intern and his/her Phone/Cell:
expectation (if any)
Email:

Expectation:

9. Relevance between project title and actual

Very Relevant
job with remarks

Academic Supervisor: Saima Rahman

Signature:

Page | 64
 Questionnaire
Dear Sir,
I am Shaymon Chaudhury, a student of BBA from International University of Business Agriculture
and Technology. I am conducting an internship report on the topic, “Effect of Budgeting Process on
Budget Performance of Dhaka Bank Limited.” To prepare this report, I need your valuable information
as well as your opinion. You rest assure that your information will be used only for academic purposes
and kept under strict secrecy.
Respondent Information
Name:
Gender: Male / Female
Designation: Mobile No:
Listed below are statements about the effect of budgeting process on the budget performance. Please
indicate your level of agreement with the statements so that your answers to questions will enable the
us to assess the effect of budget process on budget performance, where: 1=strongly disagree;
2=disagree; 3= no opinion; 4=agree; 5=strongly agree. Put a ✓ on your answer.
No Items 1 2 3 4 5
I Budgetary participation.
1 Budget holders give serious attention to budget participation – – – – –
2 All bankers are alerted on the budget control process – – – – –
3 All the stakeholders to the budget are involved – – – – –
4 All department are always involved in the budgeting process – – – – –
II Budget feedback.
1 The management of the organization review the budget and adjust according – – – – –
to the employees’ advice/information
2 Budget holders utilize their approved budget based on their plan. – – – – –
3 Departments provide timely feedback to budget users to correct the problems – – – – –
4 The management team asks the employees regularly regarding the – – – – –
implementation of the budget
III Budgeting sophistication
1 The organization has long term and short-term budget plans – – – – –
2 The budgets have clear goals and objectives – – – – –
3 There is no problem with the understanding of the budget in your office. – – – – –
IV Budgetary control.
1 Management holds budget meetings regularly to review performance – – – – –
2 The organization has budget policies that monitor budget spending – – – – –
3 Control of the budget activities is done by the head of departments – – – – –
4 The organization effectively monitor the budget implementation – – – – –
5 Managers always take timely corrective actions on the implementation of the – – – – –
budget.

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SPSS Input Screenshots

Page | 66
Five-year Financial Highlights of Dhaka Bank Limited

Page | 67
Page | 68