JATIYA KABI KAZI NAZRUL ISLAM UNIVERSITY

Trishal, Mymensingh

Internship Report on Financial Performance Analysis

of Rupali Bank Limited (RBL)

Submitted to:
Chandon Kumar Pal
Assistant Professor
Dept. of Finance & Banking
Jatiya Kabi Kazi Nazrul Islam University

Submitted by:
Maria Akter
ID: 17132647
Session: 2016-17
Dept. of Finance & Banking
Jatiya Kabi Kazi Nazrul Islam University

Date of submission: 10/04/2022

 LETTER OF TRANSMITTAL

10th April, 2022

Chandon Kumar Pal
Assistant Professor
Jatiya Kabi Kazi Nazrul Islam University
Subject: Submission of internship report on Financial Performance Analysis of Rupali Bank
Limited.

Dear Sir,
I would like to take this opportunity to thank you for the guidance and support you have provided
me during the course of this report. Without your help, this report would have been impossible to
complete. To prepare the report I have collected the most relevant information to make this report
as analytical and reliable as possible. I have concentrated our best effort to achieve the objectives
of the report and hope that my endeavor will serve the purpose. The practical knowledge and
experience gathered during this report preparation will immeasurably help in my future
professional life.
Therefore, it would be very grateful to me if you accept this report and make me obliged thereby.
And again thanks for your support and guidelines.

Yours Sincerely,
Maria Akter
ID: 17132647
Session: 2016-2017
Department of Finance & Banking
Jatiya Kabi Kazi Nazrul Islam University

2
 MY DECLARATION

I am MARIA AKTER, ID: 17132647, a student of Department of Finance & Banking, Jatiya Kabi
Kazi Nazrul Islam University. I have completed my Internship Program and prepared this report
on Financial Performance Analysis of Rupali Bank limited. In this report I have included all the
information, which I collected during my internship period. I have written this report on the basis
of my work experience and observation during the internship period. So, I am declaring that, this
report is original in nature and not provided for any other examination.

MARIA AKTER
ID: 17132647
Session: 2017-17
Department of Finance & Banking
Jatiya Kabi Kazi Nazrul Islam University

3
 Table of Contents
LIST OF TABLE................................................................................................................................................ 6
LIST OF FIGURE .............................................................................................................................................. 6
ACRONYMS ................................................................................................................................................... 7
ACKNOWLWDGEMENT ................................................................................................................................. 8
EXECUTIVE SUMMARY .................................................................................................................................. 9
CHAPTER 1: INTRODUCTION ........................................................................................................ 10
1.1 Introduction of the work ................................................................................................................... 10
1.2 Rationale of the work........................................................................................................................ 10
1.3 Scope of the study ............................................................................................................................ 11
1.4 Limitation of the study ...................................................................................................................... 11
CHAPTER 2: COMPANY OVERVIEW............................................................................................. 12
2.1 History of Rupali Bank Ltd. ................................................................................................................ 12
2.2 Rupali Bank Ltd. ................................................................................................................................ 12
2.3 Vision................................................................................................................................................. 12
2.4 Mission .............................................................................................................................................. 13
2.5 Products and Services ....................................................................................................................... 13
2.6 Services ............................................................................................................................................. 14
2.7 Board of Directors ............................................................................................................................. 15
2.8 General Banking Activities: ............................................................................................................... 16
CHAPTER 3: THEORETICAL FRAMEWORK .................................................................................... 17
3.1 Financial Analysis .............................................................................................................................. 17
3.1 Ratio Analysis .................................................................................................................................... 17
3.1.1 Liquidity Ratio: ........................................................................................................................... 18
3.1.2 Asset Activity Ratios: .................................................................................................................. 18
3.1.3 Efficiency Ratio:.......................................................................................................................... 19
3.1.4 Profitability Ratio: ...................................................................................................................... 19
3.1.5 Financial Risk Ratio: ................................................................................................................... 20
3.2 Common Size Analysis: ..................................................................................................................... 20
3.2.1 Common Size of balance sheet: ................................................................................................. 20
3.2.2 Common Size of Income Statement: ........................................................................................ 20
3.3 Trend Analysis: .................................................................................................................................. 21

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 3.3.1 Trend Analysis of Balance sheet: ............................................................................................... 21
3.3.2 Trend Analysis of Income Sheet: ................................................................................................ 21
CHAPTER 4: METHODOLOGY ....................................................................................................... 22
4.1 Source of Data ................................................................................................................................... 22
4.1.1 Primary Sources: ........................................................................................................................ 22
4.1.2 Secondary Sources: .................................................................................................................... 22
4.2 Sample Size ....................................................................................................................................... 22
4.3 Statistical Tools ................................................................................................................................. 22
4.4 Analysis Method................................................................................................................................ 22
CHAPTER 5: ANALYSIS .................................................................................................................. 23
5.1 Ratio Analysis .................................................................................................................................... 23
5.1.1 Liquidity Ratio: ........................................................................................................................... 23
5.1.2 Asset Activity Ratios: .................................................................................................................. 24
5.1.3 Efficiency ratio: .......................................................................................................................... 25
5.1.4 Profitability Ratio: ...................................................................................................................... 26
5.1.5 Credit Risk Ratios: ...................................................................................................................... 27
5.1.6 Other Ratios: .............................................................................................................................. 28
5.2 Common Size of Balance sheet: ........................................................................................................ 29
5.3 Trend Analysis: .................................................................................................................................. 31
CHAPTER 6: FINDINGS AND RECOMMENDATION ....................................................................... 35
Findings ................................................................................................................................................... 35
Recommendations for RBL: .................................................................................................................... 35
CONCLUSION........................................................................................................................................... 36
BIBLIOGRAPHY ........................................................................................................................................ 37
APPENDIX ................................................................................................................................................ 38

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 LIST OF TABLE

Sl no. Name Page no.

2.1 Products and Services of RBL 13

5.1 Liquidity Ratio 23
5.2 Asset activity ratio 24
5.3 Efficiency ratio 25
5.4 Profitability ratio 26
5.5 Credit Risk Ratios 26
5.6 Other Ratios 26
5.7 Common Size of Balance sheet 27
5.8 Balance Sheet (Trend statement) 31
5.9 Income Statement (Trend statement) 33

LIST OF FIGURE

Sl no. Name Page no.

2.1 Vision of RBL 12

2.2 Mission of RBL 13
2.3 Organizational Structure of RBL 15
2.4 Organizational Hierarchy of RBL 16
5.1 Liquidity Ratio 23
5.2 Asset activity ratio 24
5.3 Efficiency ratio 25
5.4 Profitability ratio 26
5.5 Credit Risk Ratios 27
5.6 Other Ratios 29

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 ACRONYMS

NPV- Net Present Value

RBL- Rupali Bank Limited
ROE- Return on Equity
ROA- Return on Asset
ROI- Return on Investments
P/E- Price-Earnings Ratio

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 ACKNOWLEDGEMENT

The successful accomplishment of this report is the outcome of the contribution and involvement
of a number of people, especially those who took the time to share their thoughtful guidance and
suggestions to improve the report. It’s difficult for me to thank all of those people who have
contributed something to this report. There are some special people who cannot go without
mention. We found this report beneficial to our future career and enjoyed much with making such
a practical report. Your guidelines and help made this report even more successfully.
Special thanks belongs to other supportive people who have contributed heart and soul to
accomplish this report. Some of my friends have encouraged me a lot to make my project
successful and they helped me a lot to prepare such an amazing type of report that would be an
impossible task for me prepare alone.
And thanks to the employed officers who have provided us a lot of information and gave us their
precious time that made our report informative and successful.

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 EXECUTIVE SUMMARY

The Internship report is prepared as requirement of BBA program of Jatiya Kabi Kazi Nazrul
Islam University. This report is on “Financial Performance Analysis of Rupali Bank Limited”. It
is intended to assist the reader in detailed understanding the financial performance of a Bank in
the Bangladesh. The purpose of this report is to have an idea about the “Financial Performance of
Bank in the Bangladesh. This internship report was prepared on the basis of financial performance
from 2016 to 2020 of Rupali Bank Limited. Rupali Bank Ltd. is a state- owned Commercial Bank.
Rupali Bank came into being in 1972 with the integration of Muslim Commercial Bank,
Australasia Bank and Standard Bank Ltd. The study is based on annual report of 2016-2020 year
by using the updated data about their business era. First chapter is the introduction chapter. I
discussed the Background of the study, Rationale of the study and Limitation of the study. The
main objective of the report is to know the Financial Performance Analysis of Rupali Bank
Limited. In chapter second, is about the company overview and details information about Rupali
Bank Limited. It covers the mission, vision, culture, core values and activities of the company. In
chapter three, literature review & methodology of the study is discussed very elaborately and
details such as the methods used in data collection, sources of data (primary or secondary). In
chapter four, I discussed the concept of Financial Performance Analysis. Chapter five discusses
about Analysis and interpretation of the data. Data analysis and evaluation which is discussed and
shown through chart specifically. In this chapter I discussed the Financial Performance analysis,
which is I collect from annual report of Rupali Bank Limited. Finally, in this chapter I explained
about the Findings of study, Contribution & recommendation, Conclusion, References: Appendix
(Examples, calculations, tables) Data analysis and evaluation which is explained and shown
through chart specifically.

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 CHAPTER 1: INTRODUCTION

1.1 Introduction of the work

Being a student of Bachelor of Business Administration (BBA) everyone must conduct a practical
orientation in any organization for fulfilling certain requirements of the two-month Internship
Program. The main purpose of the program is to expose the students to actual situation. This report
is done as a partial element the internship program for the BBA pupils. Practical knowledge is
fundamental for the effective use of theoretical intelligence. Bearing this in mind and internship
program was being within the BBA curriculum. The goal of this analysis is to be able to expose
the student in the organizational work situation and also to provide an opportunity for applying
academic learning in practice. I like to complete Internship in a most respected Bank, which would
end up being helpful for my long-term professional career. I got the chance to perform my
internship within the Rupali Bank Limited.

1.2 Rationale of the work

Analyzing financial performance is the process of evaluating the common parts of financial
statements to obtain a better understanding of firm’s position and performance. Financial
performance analysis enables the investors and creditors evaluate past and current performance
and financial position, and to predict future performance. Financial statement is used to judge the
profitability and financial soundness of a firm. In this study, an attempt is made to identify the
financial strength and weakness of the firm by properly establishing relationship between the
items in the balance sheet and profit and loss account of National Bank Limited.

1.3 Scope of the study

I have tried to evaluate the financial performance of National Bank Limited. The evaluation is
based on last five years (2016-2020) financial performance of the bank. The report contains the
analysis of bank’s Capital adequacy, Asset quality, Management efficiency, Earnings ability and
Liquidity. I have also compared its performance on last five years from 2016 to 2020.

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  Information availability.
 Good communication system.
 Have a wide area of gaining knowledge.
 Good working environment.

1.4 Limitation of the study

Any research work needs high degree of involvement regarding collection of information, creation
of data base, literature review and analysis of data. While doing so, many limitations arise even
though I always put my best effort to avoid them. In conducting the present study, the following
limitation has been faced.
 Time is a big constraint for my research. I had to carry out my day to day job
responsibilities. Therefore, I had less time to spend to work on the report.
 Insufficient data is the main constraint in the development of the report.
 This report did not include all the financial ratios to find out the actual financial position
of National Bank Limited.
 The performance of the bank has been compared with only last five years because of time
constraint.
 Insufficient records and publications have been another limitation in preparation of the
report.
 Non-disclosure of the bank’s policy: An organization cannot reveal all its data and
statistics to public because of its policy of secrecy. So all these secret matters have not
been possible to collect and to incorporate in the report which may consequence in a lesser
amount of acceptability.

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 CHAPTER 2: COMPANY OVERVIEW

2.1 History of Rupali Bank Ltd.

Rupali Bank Ltd. was constituted with the merger of 3 (three) erstwhile commercial banks i.e.
Muslim Commercial Bank Ltd., Australasia Bank Ltd. and Standard Bank Ltd. operated in the
then Pakistan on March 26, 1972 under the Bangladesh Banks (Nationalization) Order 1972 (P.O.
No. 26 of 1972), with all their assets, benefits, rights, powers, authorities, privileges, liabilities,
borrowings and obligations. Rupali Bank worked as a nationalized commercial bank till
December13, 1986. Rupali Bank Ltd. emerged as the largest Public Limited Banking Company
of the country on December 14, 1986.

2.2 Rupali Bank Ltd.

Rupali Bank is a state owned commercial bank in Bangladesh. It is a public limited type of
company. The bank is traded as DSE: RUPALI BANK. It falls under the banking industry and
recognized as a financial service institution. Rupali Bank Limited is one of the oldest bank in
Bangladesh as it was founded on 47 years ago in 1972 right after the country got it’s independence.
The Headquarters of Rupali Bank is situated at 34, Dilkusha Commercial Area, Motijheel in
Dhaka-1000. Is has a total of 565 branches in the entire country both inside and outside of capital
Dhaka till date. The served area of the bank is both Bangladesh and overseas. Mr. Monjur Hossain
is the chairman of Rupali Bank Ltd. Mr. Ataur Rahman Prodhan is the managing director of the
bank. The number of current employees of the bank is over 5150.

2.3 Vision

Expand loyal customer base by being known as the financial

VISION partner of choice that constantly exceeds customer
expectations.

Figure 2.1: Vision of RBL

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2.4 Mission

1
Develop a long-term
2

relationship that helps our
customers to achieve financial Offer rewarding career
success.
opportunities and cultivate
staff commitments.
MISSION
3
Uphold ethical values and
meet its customer’s financial
needs in the fastest and most
appropriate way and continue
innovative works in order to
achieve human resource with
superior qualities,
technological infrastructure
and service packages.

Figure 2.2: Mission of RBL

2.5 Products and Services

Agri and Rural  Bank-NGO Linkage Loan

Credit Division  Crops Loan - Horticulture or flower/fruit cultivation loan, vegetable
cultivation in home yard/rooftop
 Import Substitute Crops Loan 4% concessional Pulse, Oil seeds,
Spice crops & Maize cultivation
 Nursery & Tree Plantation Loan
 Shossho Gudamjat Rin Prokolpo (ShoGuRiP)
 Zero coupon (0) lending: Tomato, Mango.
CMSME Loan  Babsahi Rin
Products  Majhari Rin (Medium loan)
 Peshajibi Rin
 Shohoj Rin
 Sulob Rin

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Deposit  Rupali Double Benefit Scheme(RDBS)
Products  Rupali Kotipoti Deposit Scheme (RKDS)
 Rupali Lakhpoti Deposit Scheme (RLDS)
 Rupali Millionaire Deposit Scheme(RMDS)
 Rupali Monthly Benefit for Senior Citizens (RMBSC)
 Rupali Monthly Saving Scheme(RMSS)
 Rupali Quarterly Profit Scheme (RQPS)
 Rupali Senior Citizen Savings Account (RSCSS)
Home Loan  Bangladesh Power Development Board Employee House Building
Loan
 General House Building Loan
 Government Employee House Building Loan
 Public University Employee House Building Loan
Other Products  Rupali School Banking Account (RSBA)
 Rupali Street and Working Children Account (Pothful)

Table 2.1: Products and Services of RBL

2.6 Services
 House Building/Flat Loan for Govt. Employee
 RBL Mail
 Remittance Service
 ISS Reporting
 Mobile Banking Service

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2.7 Board of Directors

Chairman

Managing Directors

Additional Managing Director

Assistant Managing Director

General Manager

Deputy General Manager

Assistant General Manager

Figure 2.3: Organizational Structure of RBL

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 • Managing Director
• Deputy Managing Director
• General Manager
Top level • Deputy General Manager
• Assisstant General Manager

• Senior Principal Officer

• Principal Officer
Mid level

• Senior Officer
• Officer
• Junior Officer
Lower level • Office Assistant

Figure 2.4: Organizational Hierarchy of RBL

2.8 General Banking Activities

General banking section is recognized because the center of all banking activities. This is
frequently the busiest and one in the middle of the foremost vital sections of a branch as money
is assembled; currency dealings are done; clearance, transfer of funds and office actions are made
here. As bank is cramped to produce the services every day, General banking is additionally
referred to as “retail banking”. In the main local office of Rupali Bank Ltd, the subsequent sections
are beneath general banking section:
 Account opening section
 Deposit section
 Cash section
 Clearing Section
 Accounts section

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 CHAPTER 3: THEORETICAL FRAMEWORK

3.1 Financial Analysis

Financial analysis is structural and logical way to present overall financial performance of a
financial institution. It’s also help to evaluate and decision making for business operation. In
financial analysis process ratio analysis is the most dominant and logical structure to help business
related stakeholder. Under the financial ratio analysis process there are few categories to identical
area of financial institution. So business stakeholders try to concentrate to get overall business
overview from profitability, liquidity, assets management and solvency ratio analysis. These ratios
not only help to decision making process also emphasized on risk avoiding and profit raising
related factors. To calculate ratio, we need to take quantitative data from bank trading activity and
other sources.

3.1 Ratio Analysis

Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational
efficiency, and profitability by studying its financial statements such as the balance sheet and
income statement. Ratio analysis is a cornerstone of fundamental equity analysis. Ratio analysis
compares line-item data from a company's financial statements to reveal insights regarding
profitability, liquidity, operational efficiency, and solvency. Ratio analysis can mark how a
company is performing over time, while comparing a company to another within the same industry
or sector. While ratios offer useful insight into a company, they should be paired with other
metrics, to obtain a broader picture of a company's financial health. Here, this statement holds the
foremost general ratios and investigate to gauge the in service and financial act of Rupali Bank
Limited in excess of the years 2016, 2017, 2018, 2019 & 2020. The chosen ratios are ordered into
the six structure blocks of monetary report study. These are as follows:
1. Liquidity Ratio
2. Asset Activity Ratio
3. Credit Risk Ratio
4. Efficiency or Activity Ratio
5. Profitability Ratio
6. Other Ratios

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3.1.1 Liquidity Ratio:
A liquidity ratio is a type of financial ratio used to determine a company's ability to pay its short-
term debt obligations. Liquidity ratios determine a company's ability to cover short-term
obligations and cash flows, while solvency ratios are concerned with a longer-term ability to pay
ongoing debts. Common liquidity ratios include the quick ratio, current ratio, and days sales
outstanding.
This segment explains the major ratios related to reviewing liquidity ratio:

 Cash Ratio=

 Cash to Assets=

 Cash to Deposits=

 Loans to Total Deposit=

 Loans to Total Asset=

3.1.2 Asset Activity Ratios:

An activity ratio is a type of financial metric that indicates how efficiently a company is leveraging
the assets on its balance sheet, to generate revenues and cash. Activity ratios calculate the relation
competence of an organization supported it’s utilize of its resources, influence, or additional alike
record substance and are necessary in formative whether organization’s administration is doing
an honest sufficient job of making revenues and money as of its wherewithal. Activity ratios
estimate an institute’s outfitted effectiveness and working ability. This segment explains the main
ratios related to evaluating activity ratio:

 Total Assets Turnover:

 Equity Turnover:

 Current Asset Turnover:

 Fixed Asset Turnover:

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3.1.3 Efficiency Ratio:
An efficiency ratio measures a company's ability to use its assets to generate income. The
efficiency ratio indicates the expenses as a percentage of revenue, with a few variations – it is
essentially how much a corporation or individual spends to make a dollar; entities are supposed
to attempt minimizing efficiency ratios. The concept typically applies to banks.
This part explains the major ratios related to evaluating efficiency ratio:

 Interest Income to Expense=

 Operating Expense to assets=

 Operating Income to assets=

 Operating Expense to Revenue=

3.1.4 Profitability Ratio:

Profitability ratios assess a company's ability to earn profits from its sales or operations, balance
sheet assets, or shareholders' equity. Profitability ratios indicate how efficiently a company
generates profit and value for shareholders. Higher ratio results are often more favorable, but these
ratios provide much more information when compared to results of similar companies, the
company's own historical performance, or the industry average.
This part describes the key ratios related to profitability activity ratio:

 Return on Asset=

 Return on Equity=

 Return on Deposit=

 Return on Shareholders Capital=

 Interest Spread=( )

 Net Interest Margin=

 Net operating Margin=

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3.1.5 Financial Risk Ratio:
This part describes the key ratios related to credit risk activity ratio:
 Equity to Assets
 Equity to Net Loans

3.2 Common Size Analysis:

A common-size analysis is a tool financial managers use to learn more about a company over
time. Also known as vertical analysis, a common-size analysis expresses each line item in a
financial statement as a percentage of a base amount for that time period.
I used common size statements of (RBL) to disclose the transforms within the comparative
significance of every budget substance. Each single amounts in common size statements are
redefined in conditions common size proportions. The common size balance sheets and income
statements are exposed relatively from 2016 to 2020.

3.2.1 Common Size of balance sheet:

A common size balance sheet is a balance sheet that displays both the numeric value and relative
percentage for total assets, total liabilities, and equity accounts. Common size balance sheets are
used by internal and external analysts and are not a reporting requirement of generally accepted
accounting principles (GAAP). A common size balance sheet allows for the relative percentage
of each asset, liability, and equity account to be quickly analyzed. Any single asset line item is
compared to the value of total assets. Likewise, any single liability is compared to the value of
total liabilities, and any equity account is compared to the value of total equity. For this reason,
each major classification of account will equal 100%, as all smaller components will add up to
the major account classification.

3.2.2 Common Size of Income Statement:

A common size income statement is an income statement whereby each line item is expressed as
a percentage of revenue or sales. The common size percentages help to show how each line item
or component affects the financial position of the company. A common size income statement
makes it easier to see what's driving a company’s profits. The common size percentages also help
to show how each line item or component affects the financial position of the company. As a

20
result, the financial statement user can more easily compare the financial performance to the
company's peers.

3.3 Trend Analysis:

Trend analysis is a method in Technical Analysis that helps in predicting the future movement
that is based on the current ongoing trend data. Trend analysis gives an idea to the traders based
on what has happened in the past and what will be happening in the future. Trend analysis helps
in predict a trend, whether the market is in a bull or bearish run and it also suggests whether a
trend reversal is going to take place, like from a bull-to-bear market. It helps the traders to make
a profit when they trade along with the trend and not against it. It helps the traders to understand
the ongoing price direction in the market during a particular period.

3.3.1 Trend Analysis of Balance sheet:

Trend analysis is used in financial statement analysis to compare historical data, such as ratios, or
line items, over a number of accounting periods. Trend analysis allows investors and analysts to
see what has been driving a company's financial performance over several years and to spot trends
and growth patterns. This type of analysis enables analysts to assess relative changes in different
line items over time and project them into the future.

3.3.2 Trend Analysis of Income Sheet:

Trend analysis provides a means to analyze company data over a period of time by focusing on
the change in specific line items within the income statement and balance sheet. Changes are
typically measured in dollars and percentages. An investor or financial analyst will analyze
income statements for trends to determine whether the company is a good investment.

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 CHAPTER 4: METHODOLOGY

4.1 Source of Data

The statistics used to inclusive this report has come from the Primary sources as well as Secondary
sources.
4.1.1 Primary Sources:
 Conversation with officials of RBL.
 Front talk with the corresponding executive of the local office.
 Contact on variety desk of the company.
 Front chat with clients.

4.1.2 Secondary Sources:

 Web site of RBL. (https://www.rupalibank.org/).
 RBL yearly report 2016-2020.
 Lanka bangla (http://lankabd.com)

4.2 Sample Size

All the employees responsible for the finance and accounts department of 30 AD branches of RBL
are the targeted population of this study. The managers, Department in charges, officers, valued
client of FE business and responsible officers of international division are included under
population.

4.3 Statistical Tools

In processing the data, MS Word and MS Excel was used. Tables and Graphs were prepared using
respective facilities provided by MS Excel & SPSS software.

4.4 Analysis Method

I conducted primary data analysis through interview or conversation and studied additional data
from secondary sources. All the collected data have been analyzed with MS Excel Spread sheet
and MS Excel graphical presentation.

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 CHAPTER 5: ANALYSIS

5.1 Ratio Analysis

Here, ratio analysis of Rupali Bank Limited in excess of the years 2016, 2017, 2018, 2019 & 2020
are presented.
5.1.1 Liquidity Ratio:

Liquidity Ratio
Particular 2016 2017 2018 2019 2020
Cash Ratio 0.008 0.007 0.007 0.006 0.008
Cash to Asset 0.066 0.065 0.066 0.051 0.049
Cash to Deposits 0.078 0.079 0.079 0.061 0.059
Loans to Total Deposit 0.555 0.623 0.644 0.634 0.737
Loans to Total Asset 0.468 0.520 0.538 0.533 0.614

Table 5.1: Liquidity Ratio

LIQUIDITY RATIO
Cash Ratio Cash to Asset Cash to Deposits Loans to Total Deposit Loans to Total Asset

0.737
0.644

0.634
0.623

0.614
0.555

0.538

0.533
0.52
0.468

0.079

0.079
0.078
0.066

0.066
0.065

0.061

0.059
0.051

0.049
0.008

0.008
0.007

0.007

0.006

2016 2017 2018 2019 2020

Figure 5.1: Liquidity Ratio

Interpretation: The term liquidity is defined as the ability of a corporation to satisfy its financial
obligations as they are available due. The cash ratio or cash coverage ratio is a liquidity ratio that
indicates a firm's ability to pay off its current liabilities with only cash and cash equivalents. Cash

23
Ratio of RBL 2020 was 0.008 and 2016, 2017, 2018, 2019; it had been 0.008, 0.007, 0.007 &
0.006. So 2020 was increased cash ratio, it had been good than previous year for the RBL. Cash
to Asset and cash to deposit decreased. Loans to Total Deposit and Loans to Total Asset increased.

5.1.2 Asset Activity Ratios:

Assets Activity Ratios

Particular 2016 2017 2018 2019 2020
Total Assets turnover 0.051 0.041 0.044 0.039 0.038
Fixed Asset Turnover 0.516 0.435 0.497 0.472 0.502

Table 5.2: Asset activity ratio

ASSET ACTIVITY RATIO

Total Assets turnover Fixed Asset Turnover
0.516

0.502
0.497

0.472
0.435
0.051

0.044
0.041

0.039

0.038

2016 2017 2018 2019 2020

Figure 5.2: Asset activity ratio

Interpretation: The asset turnover ratio is calculated by dividing total interest income by average
total assets. Interest income, found on the income statement, are used to calculate this ratio returns
and refunds must be backed out of total sales to measure the truly measure the firm's assets ability
to generate sales. RBL’s Total Assets turnover in 2020 was 0.038; in 2017, 2018, 2019 year TAT
has decreased than 2016. It was bad sign of RBL. In fixed asset turnover and fixed asset turnover
similar thing happened.

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5.1.3 Efficiency ratio:

Efficiency Ratios
Particular 2016 2017 2018 2019 2020
Interest Income to Expense -0.012 -0.010 0.017 0.010 0.000
Operating Expense to assets 0.016 0.022 0.019 0.018 0.019
Operating Income to assets 0.002 0.002 0.002 0.003 0.002
Operating Expense to Revenue 0.654 1.122 0.573 0.722 0.825

Table 5.3: Efficiency ratio

EFFICIENCY RATIO
Interest Income to Expense Operating Expense to assets
Operating Income to assets Operating Expense to Revenue
1.122

0.825
0.722
0.654

0.573
0.022

0.019

0.019
0.018
0.017
0.016

0.003
0.002

0.002

0.002

0.002
0.01

0
-0.012

2016 2017 2018 2019 2020

-0.01

Figure 5.3: Efficiency ratio

Interpretation: Efficiency ratio means how effectively an organization can manage their
customer and supplier to recover money or paid. From this graph we can saw that from 2018 to
2019. Interest Income to Expense ratio increased last 2 years. But in 2020, it was 0.00. Operating
Expense was increasing but Operating Income was decreasing which is bad. In last 2 years
operating expense to revenue was increasing which is bad for RBL.

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5.1.4 Profitability Ratio:

Profitability Ratios
Particular 2016 2017 2018 2019 2020
Return on Asset 0.08% -0.36% 0.16% 0.09% 0.11%
Return on Equity 1.8% -10.2% 4.5% 2.4% 3.3%
Return on Deposit 0.09% -0.43% 0.19% 0.11% 0.14%
Return on Shareholders Capital 1.8% -10.2% 4.5% 2.4% 3.3%
Interest Spread 4.2% 2.3% 4.0% 3.3% 1.6%
Net Interest Margin -0.57% -0.51% 0.94% 0.55% 0.01%
Net operating Margin 4% 4% 5% 6% 5%

Table 5.4: Profitability ratio

PROFITABILITY RATIO
Return on Asset Return on Equity Return on Deposit
Return on Shareholders Capital Interest Spread Net Interest Margin
Net operating Margin
6%
4.50%

4.50%
4.20%

4.00%

5%

5%
3.30%

3.30%

3.30%
4%

4%

2.40%

2.40%
2.30%
1.80%

1.80%

1.60%
0.94%

0.55%
0.19%
0.16%

0.14%
0.11%

0.11%
0.09%

0.09%
0.08%

0.01%

2016 2017 2018 2019 2020

-0.36%

-0.43%

-0.51%
-0.57%

-10.20%

-10.20%

Figure 5.4: Profitability ratio

Interpretation: Profitability ratios are a category of financial grids that are used to assess business’s
ability to create earnings compared to its expenses and other relevant costs incurred during a
specific time. Return on assets (ROA) is a financial ratio that appears the percentage of profit an

26
organization earns in related to its overall resources. It is generally defined as net income divided
by total assets. Return on Assets (ROA) and return on deposit in 2017 to2020 is unstable so the
condition is not good; the return on equity ratio or ROE is a profitability ratio that calculates the
ability of an organization to generate profits from its shareholders’ investments in the firm. Return
on Equity 2019 was 5% and year 2019 was 3% that is decrease from 2019. Interest spread quite
stable. Return on shareholder capital decreased 2019 to 2019. But in 2020 it increased. Net interest
Margin was going positive 2019 to 2019. But it seems it is going to negative again in 2020.
Operating profit margin is a calculation of what portion of an organization's revenue is left over
after paying for variable costs of production such as wages, raw materials. In last 2019 it was good
but decreased in 2020. The operating profit margin is decrease in 2020 which was 5% and it is
less than previous year which is bad for RBL.

5.1.5 Credit Risk Ratios:

Credit Risk Ratios

Particular 2016 2017 2018 2019 2020
Equity to Assets 0.043 0.035 0.035 0.037 0.034

Equity to Net Loans 0.091 0.068 0.065 0.070 0.056

Table 5.5: Credit Risk Ratios

CREDIT RISK RATIO

Equity to Assets Equity to Net Loans
0.091

0.068

0.065

0.07

0.056
0.043

0.037
0.035

0.035

0.034

2016 2017 2018 2019 2020

Figure 5.5: Credit risk ratio

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Interpretation: Credit risk is measured as state in of the overall ability of the buyer to repay the
loan. The Equity Ratio is a quality gauge of the level of leverage used by an organization. The
Equity Ratio indicates the portion of the total assets that are capitalized by stockholders, as
opposed to creditors. The Debt ratio in 2017 to 2019 it was increased 0.070; but in 2020 it was
0.056 that was bad to RBL. Debt to equity ratio in 2017 to 2018 it was stable. In 2020 it decreased
which is bad.

5.1.6 Other Ratios:

Others Ratio
Particular 2016 2017 2018 2019 2020
Capacity Ratio 0.474 0.524 0.540 0.535 0.617

Cash Position Indicator 0.908 0.900 0.901 0.891 0.882

Leverage Ratio 0.0591 0.0594 0.0600 0.0463 0.0429

Table 5.6: Other Ratios

OTHER RATIOS
Capacity Ratio Cash Position Indicator Leverage Ratio
0.908

0.901

0.891

0.882
0.9

0.617
0.535
0.524

0.54
0.474

0.0594
0.0591

0.0463

0.0429
0.06

2016 2017 2018 2019 2020

Figure 5.6: Other Ratios

Interpretation: In 2017 capacity ratio was good but from 2018 it was going up from its standard.
Cash position indicator is stable. Leverage ratio is going down which is good for RBL.

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5.2 Common Size of Balance sheet:
Rupali Bank Limited
Balance Sheet
Common Size Analysis

Particulars 2016 2017 2018 2019 2020

Cash 115% 137% 122% 54% 84%
In hand (Including foreign currencies) 12% 13% 11% 5% 11%
Balances with Bangladesh bank and sonali 103% 124% 111% 49% 73%
bank (Including foreign currencies
Balance with other banks and financial 114% 143% 227% 149% 81%
institution
In Bangladesh 112% 142% 226% 146% 72%
Outside Bangladesh 2% 1% 1% 3% 9%
Money at call and short notice 36% 15% 0% 12% 0%
Investment in shares & securities 483% 503% 337% 191% 362%
Government 371% 364% 200% 103% 218%
Others 112% 139% 137% 88% 144%
Loans, cash credits, overdrafts/General 10% 9% 5% 2% 5%
Investments
Bills discounted and purchased 828% 1093% 1000% 565% 1056%
Account Receivables 82% 88% 69% 32% 49%
Land, building, furniture and fixtures 173% 194% 164% 86% 129%
(Including leased assets)
Other assets 1748% 2085% 1850% 1058% 1711%
Total fixed Assets 9% 8% 17% 16% 41%
Total assets 100% 100% 100% 100% 100%
Borrowings from other banks, financial 0% 0% 1% 2% 2%
institutions and agents

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 Current /Al-Wadeeah current and other 6% 5% 5% 9% 6%
deposit accounts
Bills payable 1% 1% 1% 1% 1%
Savings deposits/Mudaraba Savings 16% 18% 18% 17% 17%
Deposits
Mudarabba/ Term and Fixed deposits 62% 60% 59% 57% 59%
Total Deposits 84% 83% 83% 84% 83%
Other liabilities 11% 13% 12% 11% 11%
Total liabilities 96% 96% 97% 96% 97%
Capital /Shareholders'' Equity: 4% 4% 3% 4% 3%
Paid up capital 1% 1% 1% 1% 1%
Share Money Deposit 1% 1% 1% 1% 1%
Statutory reserve 1% 1% 1% 1% 1%
Revaluation Reserve on Govt. Securities/ 0% 1% 1% 0% 0%
Revaluation Reserve
Assets Revaluation Reserve 0% 0% 0% 0% 0%
Retained earnings 1% 0% 0% 0% 0%
General reserves and others 1% 0% 0% 0% 0%
Total Equity 4% 4% 3% 4% 3%
Total liabilities and shareholders' equity 100% 100% 100% 100% 100%
Table 5.7: Common Size of Balance sheet

Interpretation: The common statistic for a common-size balance sheet study is total assets. As
state in accounting calculation, this also equals total liabilities and shareholders’ equity, making
either term immutable in the study. It is also possible to use total liabilities to identify where a
company’s obligations lie and whether it is being conservative or risky in managing its debts.
Cash in hand is decreasing from year 2018 to 2019 but in 2020 it increased. In 2017 to 2018 it
was stable but in 2019 it decreases. So it can say that cash in hand is not stable. Investment in long
term asset from 2017 to 2020 has decreased.

30
5.3 Trend Analysis:
Rupali Bank Limited
Balance Sheet
Trend Analysis

Particulars 2016 2017 2018 2019 2020

Cash 100% 111% 127% 120% 124%
In hand (Including foreign currencies) 100% 101% 114% 116% 158%
Balances with Bangladesh bank and sonali 100% 112% 129% 121% 120%
bank (Including foreign currencie
Balance with other banks and financial 100% 117% 240% 334% 120%
institution
In Bangladesh 100% 118% 243% 332% 108%
Outside Bangladesh 100% 69% 48% 474% 938%
Money at call and short notice 100% 40% 0% 85% 0%
Investment in shares & securities 100% 97% 84% 101% 126%
Government 100% 91% 65% 71% 99%
Others 100% 115% 146% 199% 216%
Loans, cash credits, overdrafts/General 100% 123% 146% 175% 217%
Investments
Bills discounted and purchased 100% 80% 62% 49% 82%
Account Receivables 100% 123% 145% 174% 215%
Land, building, furniture and fixtures 100% 99% 101% 100% 101%
(Including leased assets)
Other assets 100% 109% 127% 152% 148%
Net fixed Assets 100% 105% 114% 127% 126%
Total assets 100% 111% 127% 154% 165%
Borrowings from other banks, financial 100% 90% 239% 474% 815%
institutions and agents

31
Current /Al-Wadeeah current and other 100% 93% 120% 254% 169%
deposit accounts
Bills payable 100% 130% 151% 232% 341%
Savings deposits/Mudaraba Savings Deposits 100% 127% 146% 166% 183%
Mudarabba/ Term and Fixed deposits 100% 107% 121% 140% 156%
Total Deposits 100% 110% 126% 153% 163%
Other liabilities 100% 128% 140% 151% 163%
Total liabilities 100% 112% 128% 155% 167%
Capital /Shareholders'' Equity: 100% 92% 104% 134% 133%
Paid up capital 100% 115% 126% 157% 173%
Share Money Deposit 100% 100% 136% 243% 243%
Statutory reserve 100% 100% 108% 113% 120%
Revaluation Reserve on Govt. Securities/ 100% 165% 187% 211% 139%
Revaluation Reserve
Assets Revaluation Reserve 100% 99% 99% 99% 99%
Retained earnings 100% 67% 54% 35% 36%
General reserves and others 100% 0% 0% 0% 0%
Total Equity 100% 92% 104% 134% 133%
Total liabilities and shareholders' equity 100% 111% 127% 154% 165%
NAV 100% 80% 82% 78% 77%
Table 5.8: Balance Sheet (Trend statement)

Rupali Bank Limited

Income statement
Trend Analysis

Particulars 2017 2018 2019 2019 2020

Interest income 100% 88% 110% 116% 122%
Interest paid on deposits and borrowings 100% 89% 78% 90% 110%

32
Net interest income 100% 100% -211% -151% -4%
Income from investments 100% 87% 95% 94% 128%
Commission, exchange and brokerage 100% 102% 106% 75% 101%
Income
Other operating income 100% 100% 133% 201% 174%
Total operating income 100% 89% 171% 156% 156%
Rent, Taxes, Insurance, Electricity etc. 100% 114% 134% 129% 142%
Salaries and allowances 100% 172% 162% 192% 197%
Legal Expenses 100% 127% 101% 118% 109%
Postage, Stamps, Telecommunication etc. 100% 83% 94% 106% 128%
Stationery, Printing, Advertisement etc. 100% 117% 93% 107% 103%
Directors' Fees and Expenses 100% 152% 157% 146% 153%
Salary and allownaces paid to Managing 100% 287% 581% 581% 581%
director/Chief Executive
Auditors' Fee 100% 176% 168% 201% 280%
Depreciation and Repairs to Bank's Assets 100% 117% 113% 123% 136%
Other Expenses 100% 145% 153% 174% 251%
Total operating expenses 100% 152% 150% 172% 197%
Operating Profit 100% -31% 211% 125% 79%
Profit before provision 100% -31% 211% 125% 79%
Specific provision (Loan and Advances) 100% 0% 387% 205% 109%
Off balance sheet items 100% 0% 14% 0% 54%
Diminution in value of investment 100% 200% 1599% 4017% 137%
Others Provision 100% 0% 159% 40% 8%
Total provision 100% 2% 276% 165% 69%
Profit for the year before taxation 100% -77% 123% 71% 93%
Current Tax 100% 73% 144% 88% 176%
Deferred tax 100% 38% 68% 28% 13%

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 Provision for tax 100% 46% 86% 42% 51%
Net profit after tax for the year 100% - 255% 173% 241%
512%
EPS 100% - 186% 115% 160%
464%
Table 5.9: Income Statement (Trend statement)
Interpretation: Trend psychoanalysis is a feature of practical study that tries to foretell the
prospect association of a hoard depends on history information. Trend psychoanalysis is
depending on the thought that what has occurred in the history provides traders a thought of what
will occur in the prospect. Cash in hand has increasing average from 2017 to 2020 and value is
100% to 150%. Investment in long term assets is has increased which is good for RBL. Net profit
after tax has increased in 2017 then, it decreases randomly which means that company is facing
loss few years. But in 2020 it was increased.

34
 CHAPTER 6: FINDINGS AND RECOMMENDATION

Findings

The findings are as follows-

 The cash to asset and cast to deposit ratio was decreasing 2017 to 2020, RBL need to
concern about it as those ratios is the indicator of liquidity position of the company. Cash
ratio is quite stable.
 The company’s total assets turnover & fixed asset turnover were also fluctuating in 2017
to 2020. Since, those turnover was often use as an indicator of the efficiency, the company
should take care of it.
 Efficiency ratios were not stable. The Condition of efficiency was very bad 2017 to 2020.
 Bank’s Net operating margin was fluctuating in 2017 to 2020. But last year in 2020 it was
decreased. That means in last year, operating and non-operating expenses were increased
which is not good for the Bank.
 Net profit margin of the bank was very poor.
 There is no return on assets and ROE is fluctuating 2017 to 2020 which is bad for Bank.
 Credit risk Ratios and Others Ratios also was fluctuating which indicate bad condition of
RBL.

Recommendations for RBL:

It is really strenuous to draw advice based on three months’ work experience and it would be
audacious of me to give advice to the people who have better knowledge and expertise than me.
Still, there are few points in which I think the organization can improve:
 The bank should focus on cash to asset ratio and cash to deposit ratio and figure out the
way to Increase it. If company falls in a liquidity crisis, it will not be able to reply current
obligations.

35
  The bank should focus on the utilization of its assets in the coming years so that total asset
turnover, fixed asset turnover could increase in coming years.
 It should need to increase its net operating profit margin by decreasing expenses and using
equity capital to cover liability increasing rate and gain its goal.
 The company should focus to increase efficiency of their operation. Inventory.
 The bank should give focus on to add to the mesh income edge.
 ROA is the indicator how bank use its asset to generate returns. So RBL needs to pay
attention to increase ROA. Return on Equity (ROE) is fluctuating from 2017 to 2020.It was
bad for RBL. The Rupali Bank Ltd should focus on increasing their ROE.
 Credit risk ratio was increasing than its standard, they should focus on it.

CONCLUSION

RBL is working in various distant areas. They are moreover contribution a broad variety of
universal banking action other than as of my study psychoanalysis I originate that buyers aren't
content with the majority of their service. While they’re contribution service moderately low down
cost but thanks to missing in correct advisement actions plus since of near to the ground overhaul
class customer’s fulfillment stage is bad. One more obsession organization should review that
RBL is giving particular saving system with moderately superior payback in the middle of
additional banks which may be a must needed step for long-standing spot in monetary
marketplace. At the present additional banks are approaching within the monetary marketplace in
arrange that savings will split more. Consequently, it is lofty time to keep on a number of lasting
clientele by giving particular savings plan or else in prospect quantity of savings may approach
downward. Lastly, I can speak civilizing excellence of overhaul is that the sole key for the reason
that there are not a few alternative currently. In arrange to extend end user approval point RBL
ought to present correct guidance to the workers to show member of staff actions throughout an
acceptable point. Furthermore, they require extending advertisement actions and the majority
significantly workers ought to present extra priority to their customers also as rapidity in servicing
are really requisite.

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 BIBLIOGRAPHY

References:
1. Rupali Bank Limited Annual Report 2016-2020

Websites:
1. http://www.rupalibank.org
2. http://lankabd.com
3. http://www.google.com
4. https://www.wikipedia.org
5. https://www.investopedia.com

37
 APPENDIX

FIVE YEAR’S PERFORMANCE

OF RBL AT A GLANCE
(Amount in crore)
Particulars 2020 2019 2018 2017 2016
Income statement
Interest income 1,948.42 1,872.34 1,782.80 1,684.22 1,350.91

Interest expenses 2,299.51 1,870.46 1,530.06 1,329.01 1,526.34

Net interest income (351.09) 1.88 252.74 354.59 (175.43)

Non-Interest income 1,438.58 1,128.76 872.96 864.00 809.27

Non-interest expenses 927.82 937.42 816.20 710.77 722.61

Net Non-interest income 510.76 191.34 56.76 153.92 86.65

Profit before provision and tax 159.67 193.23 309.50 508.52 (88.78)

Provision for loans and others 114.98 97.55 237.58 390.61 0.00

Profit after provision before tax 44.69 95.68 71.92 117.91 (88.78)

Provision for tax 28.66 41.04 34.00 68.00 37.08

Profit after tax 16.03 54.64 37.92 49.91 (125.86)

Balance Sheet
Authorized capital 700.00 700.00 700.00 700.00 700.00

Paid-up capital 414.17 414.17 376.52 303.64 276.04

Total shareholders' equity 1,805.24 1,687.60 1707.69 1,327.17 1,165.64

Deposits 53,229.99 41,462.43 38,954.95 31,971.88 27,911.60

Borrowing 842.14 1,206.58 700.77 353.75 133.19

Other liabilities 7,177.40 5,368.32 4965.57 4,588.22 4,200.42

Total liabilities 61,249.53 48,037.33 44621.29 36,913.85 32,245.21

Investments 15,805.44 10,364.62 8233.65 6840.02 7,965.12

Loans & advances 33,683.52 30,672.40 24749.06 20,667.27 17,515.04

Property, plant & equipment 1,444.63 1,432.74 1423.10 1430.70 1,412.14

Other assets 4,552.22 2,465.68 2511.39 2,111.91 1,829.25

38
Net current assets 23,788.48 26,238.45 25858.93 21,227.82 17,450.08

Earning assets 48,362.88 37,817.33 35273.85 28,701.82 25,252.41

Total assets 63,054.77 49,724.93 46328.98 38,241.02 33,410.85

Particulars 2020 2019 2018 2017 2016

Capital Measures

Total risk weighted assets 33,717.39 24,817.64 22,104.71 19,959.60 17,697.74

Core capital (Tier-I) 1,420.17 1,397.91 1,344.13 996.71 890.81

Supplementary capital (Tier-II) 1,279.06 1,167.23 870.82 306.17 292.83

Total capital 2,699.23 2,565.14 2,214.95 1,302.88 1,183.65

Required capital 3,371.74 2,481.76 2,210.47 1,995.96 1,769.77

Capital excess/ (shortfall) (672.51) 83.37 4.48 (693.08) (586.13)

Foreign Exchange Business
Export 2,283.45 2,689.27 2,600.20 2,298.97 2,500.45

Import 11,207.60 15,401.83 11,402.15 13,210.01 10,801.36

Remittance 6,580.20 2,256.92 1,717.32 1,752.20 1,652.52

Other Information
Number of employee 4,257 5,641 4,929 5,157 5,438

Officers 1,678 3,906 3,481 3,609 3,757

Staff 5,935 1,735 1,448 1,548 1,681

Other information
No. of workstations 25 25 25 25 25

No. of corporate branches 55 55 55 55 55

No. of foreign correspondence 182 182 337 444 444

Number of branches 583 572 568 563 562

No. of shareholders 5,734 6,254 7,990 6,165 4,897

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