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Prepared By

Name ID e-mail
Maruf Rahman (Sec: 05) 093 09! 030 maruf0"#li$e%c&m
Par'ha San(ana (Sec: 0)) 09* 0" 030 par'ha%'an(ana#yah&&%c&m
+ahara,ul -&.ra (Sec: 0)) 09" 0)! 530 /0%1un/&n#1mail%c&m
Rafa, 2a'han (Sec: 0)) 09* 0""0 030 ruman%rafa,#1mail%c&m
Date of Submission: 03.05.2012
Group Project on
Business Plan for a Financial Institution
Fin 340
Working Capital Management
Prepared For
Mr.Raisul Islam (Rsm
S!"ool of #usiness
$ort" Sout" %ni&ersit'
Letter of Transmittal
May 3
, 2012
Raisul Islam (Rsm)
Lecturer, School of Busiess
!orth South "i#ersity, $ha%a&1213.
$ear Sir,
Su./ec,: Su.mi''i&n &f pr&/ec, rep&r,%
'e (ere ad#ised to )re)are a *ro+ect o ,Busiess )la for a -iacial Istitutio.. It
/i#es us immese )leasure to tell you that (or%i/ o this *ro+ect has /i#e us a (ide
ra/e of e0)osure. 'e are truly deli/hted to com)lete our re)ort successfully. 'e
ho)e the re)ort (ould 1e meeti/ your e0)ectatios ad stadards.

'e are really tha%ful for this assi/met as (e /ot to %o( more a1out those issues.
It (ill 1e a /reat hoor for us if you re2uire us to e0)lai ay sort of 2ueries.
3ha%i/ you,

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Maruf Rahma *arsha Sa5aa Rafat6asa
(073 0879 030) (071 0288 030) (071 0220 030)
:aharatul ;o1ra
(072 0<98 530)
3his re)ort is )re)ared 1y us for Raisul Islam (Rsm) to fulfill the re2uiremet of -i
3<0 course i s)ri/ 2012 semester. 3his re)ort is thorou/hly for academic i
)ur)ose. It (as e#er su1mitted 1efore i ay course or istitutio.
444444444444444444444 4444444444444444444444 44444444444444444444
Maruf Rahma *arsha Sa5aa Rafat6asa
(073 0879 030) (071 0288 030) (071 0220 030)
:aharatul ;o1ra
(072 0<98 530)
=)art from the efforts of us, the success of ay )ro+ect de)eds lar/ely o the
ecoura/emet ad /uidelies of may others. 'e ta%e this o))ortuity to e0)ress
our /ratitude to the )eo)le (ho ha#e 1ee hel)ful to /i#e us #alua1le iformatio
re/ardi/ this )ro+ect so that it ca 1e successful.
'e (ould li%e to sho( our /reatest a))reciatio to hoora1le faculty Raisul Islam
(Rsm), Lecturer, !orth South "i#ersity. 'e caot tha% him eou/h for his
tremedous su))ort ad hel) throu/hout the semester. 'e felt moti#ated ad
ecoura/ed e#ery time (e atted his classes ad effecti#e class lectures. 'ithout his
ecoura/emet ad /uidace this )ro+ect (ould ot ha#e materiali5ed. "dou1tedly,
this assi/met (ould hel) us i future i our career.
3he /uidace ad su))ort recei#ed from all our /rou) mem1ers (ho cotri1uted (ere
#ital for the success of the )ro+ect. 'e are /rateful to each other for the costat
su))ort ad hel).
53B67 89 :8N57N5S
7;7:<5I=7 S<MM3R>
58PI:S P3?7
• 7;7:<5I=7 S<MM3R>
• 8=7R=I7@ 89 9IN3N:I36
S5R<:5<R7 89 B3N?63D7S2
• 3n 8$er$ie4 &f Ban1lade'hA'
Ban0in1 7n$ir&nmen,
• B3N- 3ND B3N-IN? S>S57M
89 B3N?63D7S2
• B3N-IN? S7:58R 3ND I5S
:8N5RIB<5I8N 58 527
N35I8N36 7:8N8M>
• PR8B67MS 3ND PR8SP7:5 89
B3N-IN? S7:58R IN
• :&mpe,i,&r 3naly'i'
• 8$er$ie4 &f PRM? Ban0 65D
• 7',ima,i&n' C findin1'
• Rec&mmenda,i&n
3his aalytical re)ort is )re)ared as a course re2uiremet for -I! 3<0 or 'or%i/
>a)ital Maa/emet to /et familiar (ith real&life 1usiess )la ad to stre/the the
coce)t that is leared from the te0t. I this re)ort, a )ro)er Busiess )la is made for
a fiacial istitutio ad su))orti#e calculatios ha#e 1ee made.
3o deri#e com)arati#e )erformace of *RM? Ba% Ltd ad fid the o))ortuity i
the real mar%et )lace, forecasted 1alace sheet, icome statemets. >ash flo(
statemets ha#e also 1ee made ad deri#e a recommedatio from that aalysis.
=ll data has 1ee forecasted ad also follo(ed the com)etitor@s re)orts. *rofit&Loss
Statemet ad Balace Sheet ha#e 1ee used as )rimary sources of data to )redict
)erformace. -rom the )erformace (e ca 1e a1le to fid out the )ro)er ste) (hich
(ill 1e ta%e i the lo/ ru. 3he ma+or )arts of the re)ort are Ba%i/ A#iromet,
-orecasti/ ad aalysis ad Recommedatio.
Ba%i/ e#iromet sectio )ro#ides (ith a o#erall idea a1out the )ast ad recet
coditios of 1a%i/ sector i Ba/ladesh ad hel) to fid a suita1le )ositio (here
there (ill 1e o 1usiess loss for the com)ay.
-orecasti/ B aalysis sectio is oe of the mai )arts of this re)ort as it re#eals all
the facts (ith )otetial uderstadi/ to a i#estor (hether they should i#est i this
)ro+ect or ot. 3he !et *reset Calue (!*C) ad also the Iteral Rate of Retur
(IRR) are calculated to forecast (hat (ill 1e the )ositio if (e (or% i this maer.
3he recommedatio )art is 1ased o the forecasti/ ad aalysis sectio ad re#eals
(hat a i#estor should decide a1out hisDher i#estmet decisio for this )ro+ect.
-ially, all the detailed calculatios ha#e 1ee )ro#ided at the a))edi0 sectio.
8=7R=I7@ 89 9IN3N:I36 S5R<:5<R7 89
-iacial structure )rimarily de)eds o the le#el of ecoomic ad social
de#elo)met of a )articular coutry. It i#ol#es throu/h a historical )rocess alo/
(ith the le#el of de#elo)met differet %ids of fiacial istitutios /ro( ad
de#elo) to meet differet %ids of eeds of ecoomic ad social de#elo)met. 6ece
fiacial structure or system #aries from oe coutry to aother. =s for Ba/ladesh,
fiacial structure is at the formati#e sta/e. Its classificatio is 1eset (ith )ro1lems
1ecause ri/id classificatio ofte 1ecomes urealistic. 6o(e#er, for academic
)ro)oses, fiacial istitutios i Ba/ladesh may 1roadly 1e di#ided ito t(o
a. Ba%i/ istitutios ad
1. !o&1a% fiacial istitutios.
3 char, 'h&4in1 ,he a.&$e cla''ifica,i&n i' 1i$en .el&4:
Ba%i/ istitutio !o&1a%i/ fiacial
3% 9unc,i&nal
i. >etral Ba%
ii. >ommercial Ba%s
iii. Idustrial Ba%s
i#. =/ricultural Ba%s
#. S)eciali5ed Ba%s
#i. Ba%s Ru F Islamic *rici)les
#ii. >oo)erati#e Ba%s
B% 84ner'hip
i. ?o#ermet Fr !atioali5ed Ba%s
ii. *ri#ate Ba%s
iii. :oit Ceture Ba%s
:% 8ri1in
i. Local Ba%s
i. Isurace com)aies
ii. I#estmet ad -iace com)aies
iii. Leasi/ com)aies
i#. Merchat 1a%i/ com)aies
#. 6ouse holdi/ -iace com)aies
#i. Stoc% e0cha/es
II. -orei/ Ba%s
3n 8$er$ie4 &f Ban1lade'hA' Ban0in1 7n$ir&nmen,
3he Ba%i/ Idustry i Ba/ladesh is oe characteri5ed 1y strict re/ulatios ad
moitori/ from the cetral /o#eri/ 1ody, the Ba/ladesh Ba%. 3he chief cocer
is that curretly there are far too may 1a%s for the mar%et to sustai. =s a result, the
mar%et (ill oly accommodate oly those 1a%s that ca tras)ires the most
com)etiti#e ad )rofita1le oes i the future. >urretly the ma+or fiacial istitutios
uder the 1a%i/ system icludeE
1. Ba/ladesh Ba%
2. >ommercial Ba%s
3. Islamic 1a%s
<. Leasi/ >om)aies
5. -iace com)aies
Ff these, there are four atioali5ed commercial 1a%s (!>B), 7 s)eciali5ed 1a%s,
11 forei/ 1a%s, ad 30 domestic )ri#ate 1a%s, < Islamic 1a%s curretly o)erati/
i Ba/ladesh.
?eerally, the commercial 1a%s ad fiace com)aies )ro#ide a myriad of 1a%i/
)roductsDser#ices to cater to the eeds of their customers. 6o(e#er, the Ba/ladeshi
1a%i/ idustry is characteri5ed 1y the ti/ht 1a%i/ rules ad re/ulatios set 1y the
Ba/ladesh Ba%, =ll 1a%s ad fiacial istitutios are hi/hly /o#ered ad
cotrolled uder the Ba%i/ >om)aies =ct&1773.
3he ra/e of 1a%i/ )roducts ad fiacial ser#ices is also limited i sco)eG all local
1a%s must maitai a <H >ash Reser#e Re2uiremet (>RR), (hich is o&iterest
1eari/ ad a 18H Secodary Li2uidity Re2uiremet (SLR). 'ith the li1erali5atio
of mar%ets, com)etitio amo/ the 1a%i/ )roducts ad fiacial ser#ices seems to
1e /ro(i/ more itese each day. I additio, the 1a%i/ )roducts offered i
Ba/ladesh are fairly homo/eeous i ature due to the ti/ht re/ulatios im)osed 1y
the cetral 1a%. >om)eti/ throu/h differetiatio is icreasi/ly difficult ad other
1a%s 2uic%ly du)licate ay io#ati#e 1a%i/ ser#ice.
B3N- 3ND B3N-IN? S>S57M 89 B3N?63D7S2:
Ba/ladesh iherited from the British #ia 1a%i/ duri/ *a%istai )eriod the todays
1a%i/ structure. It )resetly cosists of se#eral cate/ories or classes of 1a%s
e0cludi/ 1o&1a% fiacial istitutios li%e i#estmet ad fiace com)aies,
leasi/ com)aies, merchat 1a%i/ com)aies, housi/ de#elo)met fiace
com)aies ad stoc% e0cha/es etc. cate/ori5atio or classificatio of 1a%s is a #ery
difficult tas% sice o si/le 1asis is /ood eou/h to classify them a))ro)riately.
$es)ite that ad attem)t may 1e made to classify them o the 1asis ofE
a. -uctios ad
1. F(ershi), ad
c. Fri/i
B3N-IN? S7:58R 3ND I5S :8N5RIB<5I8N 58 527
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3he Acoomic structure of Ba/ladesh is a/ricultural 1ased. Most of the idustries of
our coutry are de)ed o a/riculture. -or sa#i/s ad formatio of ca)ital is
ormally difficult o #ie( of Ba/ladesh. Moreo#er, o( days there are #arious
fiacial istitutio (/o#ermet, )ri#ate ad forei/) ha#e 1ee set&u) i the
coutry. Side 1y side, /o#ermet has also set&u) #arious s)eciali5ed 1a%s ad
fiacial istitutios.
3hese 1a%s ad fiacial istitutios cotri1ute i differet (ay o our ecoomic
de#elo)met. As)ecially, 1a% 1usiess )lays a im)ortat role o de#elo)met of
ecoomic situatio of our coutry. Some of im)ortat cotri1utio criteria are listed
1. >reatio of medium of e0cha/e
2. >ollectio of sa#i/s ad formatio of ca)ital
3. Su))ly of ca)ital
<. $e#elo)met of home trade
5. 6el) of forei/ trade etc.
PR8B67MS 3ND PR8SP7:5 89 B3N-IN? S7:58R
IN B3N?63D7S2%
Ba%s i Ba/ladesh, i the )reset form, are more tha half a cetury old. $uri/
this )eriod, they ha#e uder/oe may cha/es 1oth 2ualitati#ely ad 2ualitati#ely.
!um1ers of 1a%s ad their 1raches ha#e icreases si/ificatly. Ser#ices )ro#ided
1y them ha#e also multi)lied. It is 1y o( a mi0 of 1oth ?o#ermet 1a%s ad 1a%s
i the )ri#ate sector. $es)ite these cha/es ca it 1e said that they ha#e )layed a
e0)ected role i ecoomic de#elo)metI 3he as(er (ill ted to 1e e/ati#e. 3he
2uestio is (hy the 1a%s could ot iitiate the )rocess of de#elo)met. 3he reasos
may 1y summari5e as uder the headi/ of )ro1lems of 1a%i/ sector i Ba/ladesh.
3hese areE
Pr&.lem &f .an0in1 'ec,&r in Ban1lade'h:
1. 3he o)eratios of the 1a%s (ere ad are still limited to city ad commercial areas
oly. 3hou/h, they ha#e s)read to rural areas, yet they are e/a/ed i trasferri/
fuds from rural or less de#elo)ed areas to ur1a areas istead of i#esti/ i the
areas of their locatio.
2. >ommercial 1a%s mostly fiaced the trade ad commerce B did ot )ay ade2uate
attetio to small, medium ad lar/e idustries ot to s)read of a/riculture, (hich still
cotri1utes lar/ely to ?$*.
3. Ledi/ o)eratios of 1a%s (ere ad are still 1ased o security icludi/
collateral. 3his security orieted ledi/ de)ri#ed the credit(orthy 1orro(ers (ho
could ot offer collateral 1ut had )otetialities.
<. 'he 1a%s (ere atioali5ed after li1eratio i 1792, they (et to rural areas ad
e0)eded their 1usiess 1oth #ertically ad hori5otally. But i doi/ so they lost
cotrol o#er their o)eratios resulti/ i icreasi/ um1er of losi/ 1raches ad
loa default. 3he result has 1ee disastrous for the 1a%i/ sector i the sese that
they are ot i a )ositio o( to cotri1ute si/ificatly ecoomic /ro(th 1y
mo1ili5i/ more resources for meeti/ /ro(i/ credit eeds. Istead of e0)asio,
they are o( foud e/a/ed i house%ee)i/.
5. Acoomic structure of Ba/ladesh is a/ricultural 1ased. -or this reaso,
idustriali5atio is ot s)read all o#er the coutry. =s result 1a%i/ o)eratio is ot
e0ted, if 1a%s ha#e a /reat desire to e0)ad their 1usiess.
8. Bureaucratic )rocess of our coutry is also 1arrier for e0)adi/ 1a%i/ 1usiess
9. ?o#ermet )olicies B )ractice, ad le/al issues are ot fa#ora1le for 1a%i/
J. Ifrastructure facilities ad security systems of our coutry is also aother )ro1lem
of e0)adi/ 1a%i/ 1usiess.
Pr&'pec, &f .an0in1 'ec,&r in Ban1lade'h:
1. =lthou/h, Ba/ladesh is a/ricultural coutry, 1ut day 1y day its ecoomic
acti#ities (ould 1e icreased.
2. ?armets Idustries is a im)ortat ecoomic sector of our coutry. So, it is
aother sector, (here 1a%s ca i#est their moey.
3. Ba%s ca esta1lish e( idustry o their o( ca)ital, 1ecause Ba/ladesh has lo(
)rice ra( materials ad lo( cost ma)o(er.
<. Ba%s ca )ro#ide credit i small sectors i.e. micro credit scheme (cotta/e idustry,
hadicraft, fishi/, etc), ad ma%e e( etre)reeur. -or e0am)le ?ramee Ba%@s
1a%i/ system.
5. Mo1ili5atio of fuds ad i#estmet i the desired sectorsD)roducti#e sectors. =s a
result )eo)le (ould 1e a(are of 1a%i/ sectors ad trasact (ith 1a%s.
:&mpe,i,&r 3naly'i':
2SB: Ban0
6SB> started o)eratios i 1778. 3he 1a% )rimarily focuses o ur1a areas ad has
1raches i most areas of the ca)ital city of $ha%a, it also has 1raches i the cities of
>hitta/o/ ad Sylhet. 3he 1a% also has a /ood um1er of =3M 1ooths i the cities
)resetG it also has 1ooths i most fi#e star hotels.
6SB> Ba/ladesh is rated K===@ i the Lo/&term ad S3&1 rati/ i the Short&
term, (hich are the hi/hest le#el of rati/s for ay 1a% or fiacial istitutio i
6SB> Ba/ladesh offers a com)rehesi#e ra/e of fiacial ser#ices such as
commercial 1a%i/, cosumer 1a%i/, )aymets ad cash maa/emet, trade
ser#ices, treasury, ad custody ad cleari/. 3he 1a% also offers offshore 1a%i/ i
the A0)ort *rocessi/ Loes, this is oly limited to i#estors i the A*Ls. = s)ecial
ser#ice called !RB Ser#ices is also a#aila1le for oresidet Ba/ladeshisG this
ser#ice allo(s cosumers to maitai accouts i "S $ollars, *oud Sterli/ ad
Auros. *eo)le usi/ this ser#ice ca freely remit moey from Ba/ladesh to ay )art
of the (orld ad ca access their moey from ay 6SB> 1ooth aroud the (orld.
6SB> Ba/ladesh has a hel) ceter (hich o)erates o daily 1asics. It is oe of the
#ery fe( 1a%s i the coutry to offer day i/ht 1a%i/.
6SB>Ms /lo1al Islamic 1a%i/ system called =maah is a#aila1le i Ba/ladesh.
3here is a s)ecial 1rach dedicated +ust for this ser#ice.
Ser#ices *ro#ided By 6SB> Ba%E
N 6ome Loa
N *ersoal Loa
N !RB Ser#ices
N 6SB> Select
N *o(er Cata/e
N A0)ort Ser#ices
N Im)ort Ser#ices
N Alectroic $> =d#isi/
N >ash Maa/emet
N =maah Retail
N =maah >ommercial
HSBC's operations in Bangladesh
N Retail Ba%i/ ad 'ealth Maa/emet
N >ommercial 1a%i/
N >or)orate ad istitutioal 1a%i/
N 3rade B Su))ly >hais
N *aymets ad cash maa/emet
N >ustody ad cleari/
N I#estmet 1a%i/ ad mar%ets
N 3reasury ad ca)ital mar%ets
N =maah
(S'F3 =alysis)
3he stre/ths of 6SB> ri#al com)aies iclude the a1ility to )ro#ide the eeds ad
demads of differet customers all o#er the (orld. 3hrou/h the use of iformatio
techolo/y, com)etitors of 6SB> may out/ro( the com)ay 1y usi/ all its
resources to de#elo) e( )roducts ad ser#ices that (ill 1e a))eali/ for the
customers. Moreo#er, the alliaces of lar/er or/ai5atio may also 1e cosidered as
oe of the stre/ths of 6SB>@s com)etitors. 3he com)etitors of 6SB> may also ha#e
stre/th i terms of ha#i/ )o(erful 1rad ima/e as (ell as stro/ mar%et leadershi).
Fe of the (ea%esses of the ri#al com)aies of 6SB> is its lac% of resources to
sustai their com)etiti#e ad#ata/e. I additio, ri#al com)aies of 6SB> may also
lac% the a1ility to reach differet customers 1ecause of distace 1arrier. *oor
maa/emet systems may also 1e cosidered as oe of the (ea%esses of com)etitors
of 6SB>. 3he ri#al com)aies of 6SB> may also ha#e (ea%esses i terms of
ha#i/ (ea% mar%eti/ a))roaches ad 1rad ima/e. Some ri#al com)aies, li%e
those small eter)rises may ha#e (ea%esses i /aii/ customer loyalty.
3he o))ortuities of the ri#al com)aies of 6SB> may iclude the follo(i/.
NMa+or )roducti#e ad fa#ora1le mar%et coditios.
N=lteratio i lie (ith re/ulatory or com)etiti#e mar%et e#iromet
N>ha/es ad ad#acemet of techolo/ical as)ects ad ehaces 1uyerDsu))lier
Ri#al com)aies of 6SB> are also affected 1y differet mar%et threats. 3hese threats
may iclude the follo(i/E
NMa+or ad#erse ad ufa#ora1le coditios i a idustry@s mar%et setti/s
re)reseti/ o1stacles to the com)ay@s desire com)etitio )ositio ad ad#ata/e.
N3he threats of e( etrats or e( idustries (hich (ill com)ete effecti#ely i the
N3he slo( /ro(th of the mar%et i (hich the idustry 1elo/s
NRa)id techolo/ical cha/es ad the e0istece of e( re#ised )olicies ad
/o#ermet re/ulatios
Du,ch-Ban1la Ban0 6imi,ed
$utch&Ba/la Ba% Limited ($BBL) is Ba/ladeshMs most io#ati#e ad
techolo/ically ad#aced 1a%. $BBL stads to /i#e the most io#ati#e ad
afforda1le 1a%i/ )roducts to Ba/ladesh. =mo/st 1a%s, $BBL is the lar/est
door i to social causes i Ba/ladesh. It stads as oe of the lar/est )ri#ate doors
i#ol#ed i im)ro#i/ the coutry. $BBL is )roud to 1e associated (ith hel)i/
Ba/ladesh as (ell as 1ei/ a leader i the coutryMs 1a%i/ sector,
$utch&Ba/la Ba% started o)eratio is Ba/ladeshMs first +oit #eture 1a%. -rom
the oset, the focus of the 1a% has 1ee fiaci/ hi/h&/ro(th maufacturi/
idustries i Ba/ladesh. 3he ratioale 1ei/ that the maufacturi/ sector e0)orts
Ba/ladeshi )roducts (orld(ide. 3here1y fiaci/ ad cocetrati/ o this sector
allo(s Ba/ladesh to achie#e the desired /ro(th. $BBLMs other focus is >or)orate
Social Res)osi1ility (>SR). A#e thou/h >SR is o( a cliche, $BBL is the )ioeer
i this sector ad termed the cotri1utio sim)ly as Msocial res)osi1lityM. $ue to its
i#estmet i this sector, $BBL has 1ecome oe of the lar/est doors ad the lar/est
1a% door i Ba/ladesh. 3he 1a% has (o umerous iteratioal a(ards 1ecause
of its ui2ue a))roach as a socially coscious 1a%.
$BBL (as the first 1a% i Ba/ladesh to 1e fully automated. 3he Alectroic&
Ba%i/ $i#isio (as esta1lished i 2002 to uderta%e ra)id automatio ad 1ri/
moder 1a%i/ ser#ices ito this field. -ull automatio (as com)leted i 2003 ad
here1y itroduced )lastic moey to the Ba/ladeshi masses. $BBL also o)erates the
atioMs lar/est =3M fleet ad i the )rocess drastically cut cosumer costs ad fees
1y J0H. Moreo#er, $BBL choosi/ the lo( )rofita1ility route for this sector has
sur)rised may critics. $BBL had )ursued the mass automatio i Ba%i/ as a >SR
acti#ity ad e#er iteded )rofita1ility from this sector. =s a result it o( )ro#ides
uri#aled 1a%i/ techolo/y offeri/s to all its customers. Because of this midset,
most local 1a%s ha#e +oied $BBLMs 1a%i/ ifrastructure istead of )ursui/ their
A#e (ith a history of hefty techolo/ical i#estmets ad e#e lar/er doatios,
cosumer ad i#estor cofidece has e#er (aed. $utch&Ba/la Ba% stoc% set the
record for the hi/hest share )rice i the $ha%a Stoc% A0cha/e i 200J.
• SMA ( Small ad Medium Ater)rises ) Ba%i/
• Retail Ba%i/
• >or)orate Ba%i/
• !RB Ba%i/
• $BBL has istalled o#er J00 =3Ms atio(ide.
• 3he accout holder of $BBL caot ha#e the facility of 5ero 1alace i
• 3he =3M card of $BBL is ot su))orted 1y all the =3M 1ooths of differet
• 3he olie moey trasfer of $BBL is fast 1ut char/es hi/h
Corporate banking services:
N *ro+ect fiace
N 'or%i/ >a)ital fiace
N Sydicatios B Structured fiace
N 3rade fiace
N A2uity fiace
N Social ad A#irometal Ifrastructure fiace
N >ustom electroic&1a%i/ )ro+ects
Lc tradi/E
$BBL has some o)eratios i this area.
Import Finance:$BBL e0teds fiace to the im)orters i the form ofE
1. F)ei/ of Im)ort LD>
2. >redit a/aist 3rust Recei)t for retiremet of im)ort 1ills.
3. Short term B medium term loas for istallatio of im)orted machieries B
)roductio thereof.
<. *aymet a/aist documet
Export Finance
1. *re&Shi)met -iace
*re&Shi)met fiace i the form ofE
I) F)ei/ of Bac%&to&Bac% LD>
II) A0)ort >ash >redit
2. *ost&Shi)met -iace
*ost&Shi)met fiace i the form ofE
I) -orei/DLocal $ocumetary Bills *urchase
II) A0)ort >redit ?uaratee
III) -iace a/aist cash iceti#e
Foreign Remittance
$BBL )ro#ides )remium 2uality ser#ice for re)atriatio ad collectio of remittace
(ith the hel) of its first class corres)odets ad traied )ersoel. By itroduci/
o&lie 1a%i/ ser#ice ad 1ecomi/ a S'I-3 =lliace =ccess Mem1er, (hich
ea1le its 1raches to sed ad recei#e )aymet istructio directly that hel)s )ro#ide
)remium ser#ices. Remittace ser#ices )ro#ided 1y $BBL areE
I(ard RemittaceE $raft, 33
Fut(ard RemittaceE -$$, 33, 3> ad >ash (->)
$BBL is (ell e2ui))ed for treasury o)eratio throu/h su1scri1i/ ReutersMs termial
ad o)erati/ i S'I-3 et(or%. It is also (ell e2ui))ed (ith com)etet huma
resources for efficiet deali/.
heir treas!r" #!ote competitive exchange rate $or ma%or c!rrencies:
1.S)ot SaleD*urchase
2. -or(ard SaleD*urchase
3. Moey mar%et Iter&1a% B >or)orate
<. S'=*S
5. -ore0 & >ommercial B !o&>ommercial
Acco!nt Services
$BBL )ro#ides all the accouts ser#ices as )rescri1ed 1y the /uidelies of >etral
Ba% (Ba/ladesh Ba%). 3hey offer com)etiti#e iterest rate ad )ro#ide )remium
2uality ser#ices for the accouts. =ccout ser#ices areE
1. -orei/ >urrecy =ccout
2. !o&Residet -orei/ >urrecy $e)osit =ccout (!->$)
3. Residet -orei/ >urrecy $e)osit =ccout (R->$)
<. >o#erti1le ad !o&>o#erti1le 3a%a =ccout
5. >o#erti1le ad !o&>o#erti1le 3a%a =ccout
8. !o&Residet Bloc%ed 3a%a =ccout
S'F3 =alysis
O Lar/est 1a%i/ ser#ice )ro#ider i the commercial 1a% ad o)erate ear a1out
1000 cor)orate cliet.
O Pualified, hard (or%i/ B dedicated huma resources
O ?ets ad#ata/e for =3M card
O Lo( de)osit rate ad miimum 1alaces are too hi/h.
O !o fuctioi/ =3M machies, delay for )ro#idi/ cards.
O *oor coordiatio B commuicatio 1et(ee 6ead offices ad 1raches
O If reduci/ its curret fees B char/es ad )ositioi/ attracti#ely, so $BBL ca
attract more cor)orate cliet
O By offeri/ more attracti#e iterest rates, ad lo(eri/ the miimum 1alaces
eli/i1le for iterest, the 1a% ca attract a lot of the old customers
O =t )reset 3rust Ba%, ABL ad BR=> >or) are )osi/ si/ificat threats to
$BBL re/ardi/ retail ad 1usiess 1a%i/ res)ecti#ely.
O -urthermore, the e( comers i )ri#ate 1a%i/ sector are also comi/ u) (ith
#ery com)etiti#e )roducts.
Brac Ban0
BR=> Ba% is a fully o)eratioal >ommercial Ba% Sice ice)tio i :uly
2001.BR=> Ba%, 1ei/ the you/est 1a%, too% a ste) to 1rea% a(ay from usual
traditio ad ta))ed ito the true su1ur1 etre)reeurial iitiati#es.BR=> Ba% has
100 Braches, 80 SMA Ser#ice >eters, 3 SMAD;rishi Braches, more tha 300
=3Ms ad <2< SMA "it offices across the coutry. It has dis1ursed o#er B$3
10,000 cores of SMA loa ad has o#er 500,000 idi#idual customers (ho access
olie 1a%i/ facilities. Its ser#ices cuts across all strata of clietele are it cor)orate,
retail or SMA.
BR=> Ba% Limited )ro#ides #arious commercial 1a%i/ ser#ices i Ba/ladesh
ad iteratioally. Its cor)orate 1a%i/ )roducts ad ser#ices cosist of o#erdrafts,
term loas, lease fiace )roducts, loas a/aist trust recei)t, (or% order fiace ad
)ro+ect fiace )roducts, ad medium eter)rise loasG 1a% /uarateesG sydicated
de1t facilitiesG trade fiace )roducts, icludi/ letters of credit ad /uarateeG
fiace )roducts to emer/i/ 1usiessesG ad 1ill )urchase ser#ices. 3he com)ay@s
SMA )roducts com)rise #arious de)osit )roducts, such as curret accoutsG ad loa
)roducts, icludi/ aoo ri, a)ur1o ri, )athshala ri, aro//o ri, di/oo ri,
)rothoma ri, dur+oy, trade )lus, 1usiess e2uity loa, )roshar ri, 1i5ess loa, ad
su))liers fiace. Its *ro1ashi 1a%i/ )roducts ad ser#ices iclude curret
accouts, sa#i/s accouts, ad fi0ed de)ositsG ad 1ods. It also offers cash
maa/emet ser#ices ad custodial ser#ices.
Ser#ices *ro#ided By BR=> Ba%E
N SMA Ba%i/
N >or)orate B Istitutioal Ba%i/
N Retail Ba%i/
N Ba%i/ Ser#ices for !o&Residet Ba/ladeshi (!RB)
N BR=> Ba% has /ro( to 58 1raches, 30 SMA Ser#ice >eters, <29 SMA
uit offices ad 112 =3M sites across the coutry
N 3he =3M card of BR=> Ba% is su))orted 1y all the =3M 1ooths of
differet 1a%s
N 3he olie moey trasfer of BR=> 1a% char/es less .
Retail Banking &rod!cts
BR=> Ba% has a #ariety of retail 1a%i/ )roducts for cosumers icludi/ Loas,
$e)osit Schemes, =ccouts Ser#ice, >ards, loa )roducts, such as salary, 2uic%, auto,
home, ad secured loasDo#erdraftG Fther Ser#ices. BR=> 1a% has recetly started
e&commerce 1a%i/ throu/h their e&commerce /ate(ay. BR=> Ba% )ro#ides CIS=
local ad iteratioal credit ad de1it cards to their cosumers.
A' (et)ork
BR=> Ba% has oe of the lar/est =3M et(or%s of its o( i Ba/ladesh (ith
more tha 300 1oth. I additio to this BR=> Ba% is the lead arra/er of FM!IB"S
shared =3M et(or%.
Mai >a)ital *lus A0cha/e >or)oratio >a)acity Buildi/ Su))ort =reasE
N Small 1usiess ledi/
N Ris% maa/emet
N Iteral audit o)eratios
N >ash maa/emet
N Leadershi) 3raii/
*e" Accomplishments in &artnership )ith Exchange
N Stre/theed small 1usiess ledi/ e0)ertise to su))ort the Ba%Ms /ro(i/
frot&lie loa staff ad de#elo)ed stro/ uder(riti/ /uidelies for maitaii/
)ortfolio 2uality i a )eriod of accelerated /ro(th
N Local, re/ioal ad iteratioal traii/s for its to) maa/ers ad staff
Highlight: Ford Impact &ro%ect
BR=> Ba% Ba/ladesh is curretly )artici)ati/ i a study, fuded 1y the -ord
-oudatio ad maa/ed 1y >a)ital *lus A0cha/e >or)oratio, focused o the
im)act of small 1usiess ledi/ o household )o#erty.
BRAC Bank #!ick overvie):
N -astest /ro(i/ 1a% i the coutry for the last t(o years
N Leader i SMA fiaci/ throu/h 350 offices
N Bi//est suit of )ersoal 1a%i/ B SMA )roducts
N Lar/e =3Ms (=utomated 3eller Machie) B *FS (*oit of Sales) et(or%
Idustry =#era/e
Caluatio BR=>
*riceDAari/s 9.90
*riceDSales 1.<0
*riceDBoo% 1.50
*riceD>ash -lo( 9.50
3ACDSales !M
Dha0a .an0
Ba/ladesh ecoomy has 1ee e0)erieci/ a ra)id /ro(th sice the M70s. Idustrial
ad a/ricultural de#elo)met, iteratioal trade, iflo( of e0)atriate Ba/ladeshi
(or%ersM remittace, local ad forei/ i#estmets i costructio, commuicatio,
)o(er, food )rocessi/ ad ser#ice eter)rises ushered i a era of ecoomic
acti#ities. "r1ai5atio ad lifestyle cha/es cocurret (ith the ecoomic
de#elo)met created a demad for 1a%i/ )roducts ad ser#ices to su))ort the e(
iitiati#es as (ell as to chaeli5e cosumer i#estmets i a )rofita1le maer. =
/rou) of hi/hly acclaimed 1usiessme of the coutry /rou)ed to/ether to res)oded
to this eed ad esta1lished $ha%a Ba% Limited i the year 1775.
3he Ba% (as icor)orated as a )u1lic limited com)ay uder the >om)aies =ct.
177<. 3he Ba% started its commercial o)eratio o :uly 05, 1775 (ith a authori5ed
ca)ital of 3%. 1,000 millio ad )aid u) ca)ital of 3%. 100 millio. 3he )aid u) ca)ital
of the Ba% stood at 3% 2,857,579,983 as o March 31, 2010. 3he total e2uity (ca)ital
ad reser#es) of the Ba% as o March 31, 2010 stood at 3% 8,038,38J,95<.
3he Ba% has 82 Braches, 3 SMA Ser#ice >eters, 8 >MS "its, 2 offshore Ba%i/
"it across the coutry ad a (ide et(or% of corres)odets all o#er the (orld. 3he
Ba% has )las to o)e more Braches i the curret fiscal year to e0)ad the
3he Ba% offers the full ra/e of 1a%i/ ad i#estmet ser#ices for )ersoal ad
cor)orate customers, 1ac%ed 1y the stateQofQthe&art techolo/y ad a team of hi/hly
moti#ated *rofessioals.
=s a ite/ral )art of our commitmet to A0cellece i Ba%i/, $ha%a Ba% o(
offers the full ra/e of real&time olie 1a%i/ ser#ices throu/h its all Braches,
=3Ms ad Iteret Ba%i/ >haels.
$ha%a Ba% Ltd. is the )referred choice i 1a%i/ for friedly ad )ersoali5ed
ser#ices, cutti/ ed/e techolo/y, tailored solutios for 1usiess eeds, /lo1al reach
i trade ad commerce ad hi/h yield o i#estmets.
Idustry =#era/e
Caluatio $;B;
*riceDAari/s J.20
*riceDSales 2.70
*riceDBoo% 2.00
*riceD>ash -lo( J.20
3ACDSales !M
:i,y Ban0
>ity Ba% is oe of the oldest )ri#ate >ommercial Ba%s o)erati/ i Ba/ladesh. It
is a to) 1a% amo/ the oldest fi#e >ommercial Ba%s i the coutry (hich started
their o)eratios i 17J3. 3he Ba% started its +ourey o 29th March 17J3 throu/h
o)ei/ its first 1rach at B. B. =#eue Brach i the ca)ital, $ha%a city. It (as the
#isioary etre)reeurshi) of aroud 13 local 1usiessme (ho 1ra#ed the immese
ucertaities ad ris%s (ith coura/e ad 5eal that made the esta1lishmet B for(ard
march of the 1a% )ossi1le. 3hose s)osor directors commeced the +ourey (ith
oly 3a%a 3.< core (orth of >a)ital, (hich o( is a res)ecta1le 3a%a 330.99 core as
ca)ital B reser#e.
>ity Ba% is amo/ the #ery fe( local 1a%s (hich do ot follo( the traditioal,
decetrali5ed, /eo/ra)hically maa/ed, 1rach 1ased 1usiess or )rofit model.
Istead the 1a% maa/es its 1usiess ad o)eratio #ertically from the head office
throu/h < distict 1usiess di#isios amely
O >or)orate B I#estmet Ba%i/G
O Retail Ba%i/ (icludi/ >ards)G
O SMA Ba%i/G B
O 3reasury B Mar%et Ris%s.
"der a real&time olie 1a%i/ )latform, these < 1usiess di#isios are su))orted at
the 1ac% 1y a ro1ust ser#ice deli#ery or o)eratios setu) ad also a smart I3
Bac%1oe. Such cetrali5ed 1usiess se/met 1ased 1usiess B o)erati/ model
esure s)eciali5ed treatmet ad ser#ices to the 1a%Ms differet customer se/mets.
3he 1a% curretly has J9 olie 1raches ad 10 SMA ser#ice ceters s)read across
the le/th B 1readth of the coutry that iclude a full fled/ed Islamic Ba%i/
1rach. Besides these traditioal deli#ery )oits, the 1a% is also #ery acti#e i the
alterati#e deli#ery area. It curretly has <8 =3Ms of its o(G ad =3M shari/
arra/emet (ith a )arter 1a% that has more tha 550 =3Ms i )laceG SMS
Ba%i/G Iterest Ba%i/ ad so o. It already started its >ustomer >all >eter
o)eratio. 3he 1a% has a )la to ed the curret year (ith 100 o( =3Ms.
>ity Ba% is the first 1a% i Ba/ladesh to ha#e issued $ual >urrecy >redit >ard.
3he 1a% is a )rici)al mem1er of CIS= iteratioal ad it issues 1oth Local
>urrecy (3a%a) B -orei/ >urrecy ("S $ollar) card limits i a si/le )lastic. >ity
Ba% has lauched =merica A0)ress >redit >ard ad =merica A0)ress ?old >redit
card i !o#em1er 2007. >ity Ba% is the local careta%er of the 1rad ad is
res)osi1le for all o)eratios su))orti/ the issui/ of the e( credit cards, icludi/
1illi/ ad accouti/, customer ser#ice, credit maa/emet ad char/e
authori5atios, as (ell as mar%eti/ the cards i Ba/ladesh. Both cards are
iteratioal cards ad acce)ted 1y the millios of merchats o)erati/ o the
=merica A0)ress /lo1al merchat et(or% i o#er 200 coutries ad territories
icludi/ Ba/ladesh. >ity Ba% is oe of the lar/est cor)orate 1a%s i the coutry
(ith a curret 1usiess model that hea#ily ecoura/es ad su))orts the /ro(th of the
1a% i Retail ad SMA Ba%i/. 3he 1a% is #ery much o its (ay to o)ei/ may
ide)edet SMA ceters across the coutry (ithi a short time. 3he 1a% is also
#ery acti#e i the (or%ersM forei/ remittace 1usiess. It has stro/ tie&u)s (ith
ma+or e0cha/e com)aies i the Middle Aast, Auro)e, -ar Aast B "S=, from (here
thousads of idi#idual remittaces come to the coutry e#ery moth for
dis1ursemets throu/h the 1a%Ms lar/e et(or% of 79 olie 1raches ad SMA
ser#ice ceters.
8$er$ie4 &f PRM? Ban0 65D
*RM? Ba% Ltd is a secod /eeratio 1a%. =s (e are /oi/ to start our o)eratios
from :auary 2012, (e (ill de#elo) a structure for our 1a% ad )re)are a (ell
maa/ed fiacial system. Fur authori5ed ca)ital (ill 1e 10000 millio ad (ill try to
reach to lar/er )ortios i the mar%et.
8ur mi''i&n and $i'i&n:
3o stad out as a )ioeer 1a%i/ istitutio i Ba/ladesh ad cotri1ute
si/ificatly to the atioal ecoomy.
• 6i/h 2uality fiacial ser#ices (ith the hel) of the latest techolo/y.
• -ast ad accurate customer ser#ice.
• Balaced /ro(th strate/y.
• 6i/h stadard 1usiess ethics.
• Steady retur o shareholder@s e2uity.
• Io#atio 1a%i/ at a com)etiti#e )rice.
• =ttract ad retai 2uality huma resource.
• -irm commitmet to the society ad the /ro(th of atioal ecoomy.
:8R7 =36<7S 89 527 B3N-
N3eam s)irit
NSer#ice A0cellece
:6I7N5 :8MI5M7N5 89 527 B3N-
N$is)atch of (or% (ith hi/h de/ree of )rofessioalism ad use of most
suita1le 1a%i/ techolo/y.
N-oudi/ life&lo/ relatioshi) 1ased o mutual trust ad res)ect.
NRes)ose to customer eeds (ith 2uic%ess ad accuracy.
NShari/ their #alues ad 1eliefs.
NMutual /ro(th.
N-irst&rated solutios of the 1a%i/ )ro1lems ad issues.
N>om)etiti#e )rici/ of )roducts ad ser#ices.
NSafety ad security of their moey i trust (ith Ba%
N35<R7 89 B<SIN7SS
=s a commercial 1a%, (e (ill do all traditioal 1a%i/ 1usiess icludi/
the (ide ra/e of sa#i/s ad credit scheme )roducts, retail 1a%i/ ad acillary
ser#ices (ith the su))ort of moder techolo/y ad )rofessioal e0cellece. 'e (ill
lauch a um1er of fiacial )roducts ad ser#ices sice its ice)tio. 3he ty)es
of de)osits, loas B ad#aces ad iteratioal 1usiess areas uder,
D7P8SI5 S:27M7
Besides -i0ed $e)osits, Sa#i/s Ba% $e)osits ad >urret =ccout $e)osits, our
Ba% (ill itroduce the follo(i/ customer friedly de)osit schemesE
=) *esio Sa#i/s Scheme (*SS)
B) Aducatio Sa#i/s Scheme (ASS)
>) Mothly Sa#i/s Scheme (MSS)
$) Sa#ers Beefit $e)osit Scheme (SB$S)
A) -i0ed $e)osits (1, 2, 3, 8 B 12 moths ad 2, 3 years)
-) $ou1le Beefit Scheme ($BS)
683N S:27M7
3he loa )ortfolio of the Ba% is (ell di#ersified ad co#ers fudi/ to a (ide
of 1usiess ad idustries icludi/ readymade /armets, te0tile, edi1le oil, shi)
scra))i/, steel B e/ieeri/, chemical, )harmaceuticals, cemet, costructio,
health&care, real&estate ad loas uder cosumer@s credit schemes allo(ed to the
middle&class )eo)le of the coutry for ac2uiri/ #arious household items.
=) =/ricultural Scheme
B) >ommercial Ledi/
>) 'or%i/ >a)ital
$) 6ouse Buildi/ Loa
A) >osumer >redit Scheme
-) -iace to !B-Is
?) SMA -iace
6) Lar/eDMedium Scale Idustry
I) Loa a/aist A0)ort B Im)ort
3he iteratioal 1usiess of the 1a% icludes the follo(i/E
&Im)ort Busiess
&A0)ort Busiess
&-orei/ Remittaces
8527R PR8D<5DS7R=I:7S
3he other )roduct D ser#ices offered 1y the 1a% are as uderE
&=3M F)eratio
& Real 3ime F
&lie ay Brach Ba%i/ Ser#ice
& $ual >urrecy Cisa >redit >ard
& Islamic Ba%i/ Ser#ices
& Merchat Ba%i/ Ser#ice
:8R7 8B+7:5I=7
3he 1a%Ms o#erall o1+ecti#e is to ha#e a hi/her )rofita1ility tha that of the (ei/hted
a#era/e of other 1a%s. =s such the mai focus of the Ba% is o hi/hly
)rofita1le 1usiess (ith co#ici/ /ro(th )otetial. Cisio for the future is the
characteristic that differetiates our Ba% from other com)etitors.
M3N3?7M7N5 S5R<:5<R7
'e ha#e )laed our maa/emet structure (ith clearly defied res)osi1ilities,
dele/atio of authority ad )ro)er accouta1ility.
Resultatly, there is tras)arecy i decisio&
ma%i/ ad maa/emet acti#ities. 3he 1a% has
a))ro)riate or/ai5atioal structure maed (ith 2ualified )rofessioals for )ro)er )l
ai/, e0ecuti/, cotrolli/ ad moitori/ fuctios.
SP7:I36 9735<R7 89 527 B3N-
a) I our 1a% (e (ill 1e e/a/e i co#etioal commercial 1a%i/.
1) It is the )ioeer to itroduci/ ad lauchi/ differet customer friedly
de)osit scheme to ta) sa#i/ of the )eo)le for chaeli/ the same to
the )roducti#e sector of the ecoomy.
Maa/i/ $irector
$e)uty Maa/i/ $irector
Seior A0ecuti#e Cice *residet
A0ecuti#e Cice *residet
Seior Cice *residet
Cice *residet
-irst Cice *residet
Seior =sstt. Cice *residet
=sstt. Cice *residet
Seior *rici)al Ffficer
Maa/emet 3raiee *rici)al Ffficer
Maa/emet 3raiee e0ecuti#e Ffficer
Seior officer *ro1atioary Ffficer
:uior officer
3raiee assistat officer =ssistat officer
>om)uter traiee >om)uter o)erator
>ashier traiee >ashier
c) 3he 1a% is committed to cotiuous research ad de#elo)met so as to %ee)
)hase (ith moder 1a%i/
d) 3he o)eratio of the 1a% is com)uteri5ed to esure )rom)t ad efficiet
ser#ice to the customers.
e) 3he 1a% has itroduced camera sur#eillace system to stre/the the security
ser#ice iside the 1a% )remises.
f) 3he 1a% itroduced customer relatio maa/emet to assess the eed of the
customers ad resol#es ay )ro1lem o the s)ot.
P&''i.le S@85 analy'i' &f &ur .an0:
S'F3 aalysis, is a strate/ic )lai/ tool to e#aluate he Stre/ths, 'ea%esses,
F))ortuities ad 3hreats i#ol#ed i a )ro+ect or i a 1usiess #eture. It i#ol#es
s)ecifyi/ the o1+ecti#e of the )ro+ect or 1usiess #eture ad idetifyi/ the iteral
ad e0teral factors that are fa#ora1le ad ufa#ora1le to achie#e the o1+ecti#es. 3he
aim of the S'F3 aalysis is to idetify the %ey iteral ad e0teral factors that are
im)ortat to achie#e the o1+ecti#es
'ell&1uilt i#estmet arra/emet
=im for ha#i/ /ood(ill i the 1a%i/ sector
>liet loyalty is e0)ected to 1e hi/h.
Im)ro#ed (or%i/ situatio
3raii/ ad de#elo)met facilities
?ood iterior decoratios (ith cetral air&coditio.
Miimum (aiti/ time
?ood )ersoal relatioshi) (ith customers.
'e (ill a))oit (ell&traied em)loyees.
'e (ill )ro#ide olie 1a%i/ facility to our customers. =ll the 1raches
(ill 1e com)uteri5ed.
?ood cor)orate ima/e i the 1a%i/ sector.
*ro#idi/ loa i cor)orate sector.
Lo(er amout of 1ed de1t.
'or%er um1er is iade2uate
More u) to date 1a%i/ facilities such as accout chec%i/ 1y mo1ile, >redit
card is ua#aila1le.
3he (or%forces of the 1a% may ot 1e recei#i/ a))ro)riate #alidatio
re/ardi/ differet ty)e of facilities.
>etrali5ed maa/emet ma%es decisio&ma%i/ )rocess more difficult ad
time o#erridde
3here (ill 1e o 2< hours 1a%i/ facilities.
Bidi/ i rules ad re/ulatio.
Lac% of commuicatio 1et(ee maa/emet
Fur 1rach (ill 1e situated i most commercial area, so it has a chace to
attract more 1usiessme.
It has the chace to ca)ture studets se/met of the mar%et 1y /i#i/ them
customi5ed ser#ice for 1oth sa#i/ ad credit scheme.
3he )o)ulatio of Ba/ladesh is cotiuously icreasi/ at a rate of 9.3H )er
aum.3he coutry@s /ro(i/ )o)ulatio is /radually ad icreasi/ly leari
/ to ada)tatio of cosumer fiace
>urret la( ad order situatio is ot )ositi#e for the i#estmet )art.
3he )erceta/e of credit defaulter is ele#ated
*essimistic re)resetatio to the /o#t. ad to Ba/ladesh Ba%.
Some Ba%s offeri/ more attracta1le rate o de)osits tha ours.
Some forei/ Ba%s are itroduci/ may e(, e0)esi#e ad techolo/ical
ser#ices for customers.
!um1er of )otetial com)etitors 1oth forei/ ad domestic )ri#ate 1a%s are
icreasi/ day 1y day. =t )reset 6SB>, *rime Ba%, $utch&Ba/la Ba%,A
RIM Ba%, BR=> Ba%, Mercatile Ba%, Social i#estmet, Islamic Ba%
are also comi/ u) (ith #ery com)etiti#e force.
7',ima,i&n' C findin1':
9&reca',ed .alance 'hee, and inc&me ',a,emen,E
3o )re)are the 1alace sheet ad icome statemet, (e ha#e ta%e loo% at similar
com)etitor@s aual re)ort e./ !atioal Ba% Ltd. li%e the com)etitor, some of the
assets are li2uid ad some of them are fi0ed to maa/e the com)ay@s li2uidity ad
sol#ecy (hich are #ery im)ortat for a 1a%. =/ai i lia1ility sectors some are
curret ad fi0ed lia1ilities, some are iterest 1eari/ ad o iterest 1eari/
lia1ilities. =ll the other istrumets for 1alace sheet ad icome statemet are
maa/ed i the same (ay.
3he data of year 2012 for 1alace sheet ad icome statemet are )resumed ad the
forecasted for the e0t t(o years. 'e ha#e assumed that the com)ay is /oi/ to ha#e
15H /ro(th i total asset. =s loas ad leases are 1a%@s assets ad mai 1usiess,
(e are /oi/ to forecast all the curret ad fi0ed assets, lia1ilities, e2uities i 1alace
sheet ad iterest icome, iterest e0)ese, o iterest icome etc. of icome
statemet 1y ta%i/ their )erceta/e of total assets. -or e0am)leE curret asset is
5.53H of total asset 1128987J<723 i 2012, so the )redicted curret assets (ill 1e
5.53H of the forecasted total asset of 2013 ad 201<. I case of icome statemet, the
iterest icome 111JJ58<53 is .77H of the total asset, so the forecasted et icome
for 2013 ad 201< (ill 1e the same )erceta/e of the res)ecti#e year@s total asset.
3o calculate the cost of ca)ital (e ha#e used the method of '=>>. 3he e2uatio for
the calculatio is
'=>>S (ei/ht of lia1ilityTcost of lia1ilityU (ei/ht of e2uityTcost of e2uity
S (3otal de1tDtotal de1t ad e2uity)T (total iterest e0)eseDtotal iterest 1eari/
lia1ilities) U (3otal shareholder@s e2uityDtotal de1t ad e2uity)TRFA
3he cost of ca)ital, 0.070<88012 is 2uite lo( ad maa/ea1le for the 1a%. 3he
(ei/ht of the lia1ilities is almost 70H so the com)ay is hi/hly le#era/ed 1ut it is
also lo( of cost as the iterest e0)ese is lo(.
3he free cash flo( is also )ro+ected for 2012&201<. "si/ the estimated free cash (e
ha#e calculated the !et *reset #alue of the 1a%. 3he discout rate for this
calculatio is the '=>> of the com)ay.
!*CS*C of ->-1U*C of ->-2U *C of ->-3
3he !*C of the 1a% is 185<991171<, (hich is )ositi#e. =s (e %o( that a )ro+ect
has )otetial to 1e successful (he its !*C is )ositi#e, (e should /o for o)ei/ u)
this 1a%.
3he iteral rate of retur is calculated 1y usi/ trial ad error method. !*C is
calculated for differet rates ad IRR is the rate for (hich !*C is foud 5ero. 3he
IRR of this 1a% is 57.97H.
3he IRR of the 1a% is )ositi#e ad 2uite hi/her tha the '=>>. So the )ro1a1ility
of /etti/ a )rofita1le retur from the i#estmet is hi/h. 3he )la of o)ei/ u) the
1a% should 1e /rated.
3he follo(i/ im)ortat acti#ities eed to 1e )erformed 1y the 1a% to 1ecome more
efficiet ad effecti#e i ear future.
Fur 1a% should esta1lish e(Du)dated fiacial )roducts to attract )otetial
>ustomer@s credit scheme should ameliorate 1y #arious moder
1a%i/ systems.
>urret )ortfolio should 1e e0a//erated. !ot to /i#e (ei/ht oly i (or%i/
ca)ital fiaci/.
'e should create other ty)e of de)osit to attract more customers.
3he loa officer must determie that 1orro(er ha#e res)osi1le attitude
to(ard usi/ 1orro(ed fuds, is truthful i as(eri/ the 1a%@s 2uestio ad
(ill ma%e e#ery effort to re)ay (hat is o(ed.
3he loa officer must 1e re#ie(ed all ty)es of loa o a )eriodic 1asis