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ASSIGNMENT
ON
Ratio Analysis of Bangladesh Krishi Bank for the years 2010 & 2011

Course: FIN 510: Bank Management

Prepared For,
Md. Alamgir Hossen
Course Instructor
FIN 510: Bank Management
WMBA-IBA-JU

Prepared By,
Paritran Talukder
Roll: 201103098
WMBA-IBA-JU

Date of Submission,
November 16, 2012

The Institute of Business Administration, Jahangirnagar University, Savar, Dhaka

Bangladesh Krishi Bank

Bangladesh Krishi Bank (BKB) is a 100% government owned specialized Bank in Bangladesh.
KRISHI means Agriculture. Since its inception, BKB is financing in agricultural sector remarkably.
BKB also performs commercial banking. People working abroad can easily send money home
through our Taka Drawing Arrangement.
The major occupation of the people of Bangladesh is "Krishi". Krishi is a Bengali word which means
"Agriculture". About 85% of the population depends directly or indirectly on agriculture which
contributes a significant portion to GDP.
Bangladesh Krishi Bank (BKB) has been established under the Bangladesh Krishi Bank order 1973
(President's Order No 27 of 1973). BKB is a Banking Company under the Banking Company Act1991. Its Head Office is located at Krishi Bank Bhaban,83-85 Motijheel Commercial Area, Dhaka1000, Bangladesh.

Current Asset
1. CURRENT RATIO =
Current Liabilities
76524,922,447.00
For the year 2011 =
129,585,520,572.00
= 0.59
66,048,966,139.00
For the year 2010 =
110536,299,782.00
= 0.60
Comment: In the year 2011 the short term debt paying ability was lower than 2010.
Net Income
2. RETURN ON ASSETS =
Total Assets
3603,577,157.00
For the year 2011 =
144,836,311,366.00
= 0.024 or 2.4%
2446,853,965.00
For the year 2010 =
124,687,777,443.00
= 0.0196 or 1.96%
Comment: In 2010 return on assets is comparatively lower than that the year 2011. Therefore,
overall profitability of assets in year 2011 is better.

Net Income
3. RETURN ON COMMON STOCKHOLDERS EQUITY =
Common Equity
3603,577,157.00
For the year 2011 =
14,469,380,340.00
= 0.24 or 24.00%
2446,853,965.00
For the year 2010 =
12,446,729,033.00
= 0.19 or 19 %
Comment: profitability of owners investment in year 2011 is higher than that of year 2010.

Net Interest Income

4. NET INTEREST MARGIN =
Total Assets
4218,407,545.00
For the year 2011 =
144,836,311,366.00
= 0.029 or 2.9%
2088,801,459.00
For the year 2010 =
124,687,777,443.00
= 0.018 or 1.08%
Comment: For all the asset interest income from investment in year 2010 is higher.
Net Noninterest Income
5. NET NONINTEREST MARGIN =
Total Assets
7298,316,420-4218,407,545.00

For the year 2011 =

144,836,311,366.00
= 0.021 or 2.1%
4789,819,035.00 2088,801,459.00
For the year 2010 =
124,687,777,443.00
= 0.0217 or 2.17%
Comment: Income from other operating activities except profit from investment is higher in year
2010 than that of year 2011.

Net Operating Income

6. NET OPERATING MARGIN =
Total Assets
7298,316,420.00
For the year 2011 =
144,836,311,366.00
= 0.0504 or 5.04%
4789,819,035.00
For the year 2010 =
124,687,777,443.00
= 0.038 or 3.8%
Comment: Management had been operated the activities in 2011more effectively.
Net Income
7. NET PROFIT MARGIN =
Total Operating Revenue
1091,310,752.00
For the year 2011 =

= 0.1495 or 14.95%
7298,316,420.00
600,292,013.00

For the year 2010 =

= 0.1253or 12.53%
4789,819,035.00

Comment: Net profit margin in year 2011 is better; comparing operating revenue net income in
2010.
Total Operating Revenue
8. ASSET UTILIZATION =
Total Assets
7298,316,420.00
For the year 2011 =
129,709,816,841.00

= 0.056 or 5.6%

4789,819,035.00
For the year 2010 =

= 0.0384 or 3.84%
124,687,777,443.00

Comment: In year 2011 assets are used more efficiently.