Group Members

Asib Bin Absar Ikram Ahmed Chowdhury Shuvo Barua

2004110110119 2004110110132 2004110110120

Osman Goni
2004110110129
Contents
• The Role of Budget in Banking Management

• The Importance of Budgeting in Banking

• The Basics of Budget Management

• Research Design and Methods

• Challenges in Budget Management

• The Impact of Budget Management on Growth

• DEMOGRAPHIC CHARACTERISTICS OF
PARTICIPANTS

• FINDINGS

• SUMMARY OF FINDINGS

• Conclusion
The Role of Budget in
Banking Management

The management of budgets has always been a fundamental part of banking. In

this presentation, we will explore the key aspects of budget management and its
role in the banking industry.
The Importance of Budgeting in Banking

Background of the Study Objective of the Study Significance of the Study

By setting realistic budgets, you
can achieve your saving goals and
invest wisely for the future.
Budgeting helps in informed
decision-making by providing
clear insights into the profitability
and cost of banking services.
Budgeting helps to plan finances,
control costs, and manage cash
flow, contributing to the
sustainability and growth of the
bank.
The Basics of Budget Management

1 Set Goals

Define the financial targets to achieve and allocate resources accordingly.

2 Create Budget

Develop a budget for the different departments based on their financial needs and available
resources.

3 Monitor Performance

Track the actual expenditure and compare it with the budget to identify and address deviations.
Research Design and Methods

Research Design Data Collection

Conduct thorough research on financial Use a mix of quantitative and qualitative methods
performance and market trends to identify key to gather data, including customer surveys,
areas for budget allocation. financial statements, and employee feedback.

Data Analysis Ethical Considerations

Use statistical tools to analyze the collected data Ensure that all data collection and analysis adhere
and draw relevant conclusions about budget to ethical standards and are not biased in any way.
management.
Challenges in Budget Management
Complexity
It can be challenging to develop
an accurate budget that considers
all the complexities of the banking
industry.
Variance
The actual expenditure may differ
significantly from the budget,
which requires frequent
monitoring and modifications.
Regulation
The ever-changing banking
regulations can make it
challenging to develop budgets
that adhere to compliance
requirements.
The Impact of Budget Management on
Growth

1 Efficient Resource Allocation

Budgeting helps banks allocate resources

Improved Cost Control 2 efficiently and ensure the optimal
By keeping a close eye on their expenses, utilization of financial resources.
banks can minimize their operational costs
and identify cost-saving opportunities.

3 Increased Profitability

Effective budgeting can have a positive

impact on the bank's bottom line, leading
to increased profitability and growth.
Data Analysis and Presentation

Automation Data Analytics Agility

With advancements in
technology, banks can now
use automation to develop
more accurate and efficient
budgets.
Data analytics tools can help
banks collect and analyze
large amounts of data to
develop more informed
budgets.
As the banking industry
evolves, banks need to
develop agile budgeting
methodologies that can adapt
to changing business needs
and market conditions.
 DEMOGRAPHIC CHARACTERISTICS
OF PARTICIPANTS
The study targeted 146 respondents from two groups, the (AB Bank 73 staffs) and from (UCB Bank 73 staffs)

In collecting data with regard to the assessment of budget and budgetary control practiced in selected private banking in
Bangladesh. The social and demographic variables like age, gender, education level, position and experience of the respondents
were asked and their responses are summarized and discussed below
Table 1 Characteristic of participant
AB Bank UCB Bank Total
Respondent Demographics characteristics

N % N % N %

Gender Male 34 46.6 46 63 80 54.8

39 53.4 27 37 66 45.2
Female

Age 25-35 32 43.8 28 38.4 60 41.1

36-50 23 31.5 35 47.9 58 39.7

50-60 18 24.7 10 13.7 28 19.2

Education level First Degree 38 52.1 45 61.6 83 56.8

MA 23 31.5 18 24.7 41 28.1

PHD 12 16.4 10 13.7 22 15.1

Year of Experience 1-5 years 42 57.5 35 47.9 77 52.7

6-10 years 12 16.4 21 28.8 33 22.6

>10 Years 19 26.0 17 23.3 36 24.7

Job position Finance manager 8 11.0 5 6.8 13 8.9

Accountant 12 16.4 15 20.5 27 18.5

Budget officer 10 13.7 12 16.4 22 15.1

other line manager 32 43.8 28 38.4 60 41.1

customer officers 11 15.1 13 17.8 24 16.4

Findings
Budgeting is a set of procedures by which the organizations use their scarce
financial resources for the accomplishment of organizational goals. Within this
context, the budget can be used for 3 purposes: as an instrument of economic
policy; as a tool for economic management; and as an instrument for
accountability . This study examines the factor affecting the budgeting process in
which those 2 banks use table 1 .
Table 2 the annual report of the private banking in Bangladesh

UCB bank
AB Bank
UCB Bank AB Bank
(IN CORE)
(IN CORE)

Banks performance 2021/22 2020/21 2021/22 2020/21 % change

Total Income 12,906 10,259 20,643 13,744 25.8% 50.2%

Total Expense 9,102 7,583 13,190 8,921 20.0% 47.9%

Profit before tax 3,804 2,676 7,453 4,823 42.2% 54.5%

 SUMMARY OF FINDINGS

The demography of the participants indicates that majority of the

respondent were male and also found to be the age above 35. As far as
work experience most of them have served the bank between 1-5 years.
Majority of respondents were agreed that factors such as Budgets are time
consuming and costly, Budgets concentrate on cost reduction and not value
creation, weak communication between those involved in budgeting and
operating personnel and Budgets tend to create departmental conflicts over
resource allocation and blaming when targets are not met were major factor
in which that affects the budgeting process. Moreover, the respondents
believed that budget and budgetary control system would help for better
Conclusion
• Budgeting is an essential aspect of banking management.
• Effective budget management can help banks allocate resources efficiently and improve profitability.

• Challenges, such as regulatory changes and budget variance, require frequent monitoring and modifications
to ensure accuracy and compliance.
• By adopting new technologies and agile methodologies, banks can develop more informed and efficient
budgets that support growth and sustainability.