You are on page 1of 48

CHAPTER-01

Daffodil International University

1 | Page

1.1 Introduction:
EXIM Bank Ltd bank is very old institution that is contributing toward the development of
any economy and is treated as an important service industry in modern world. Now days
the function of bank is not limited to within the same geographical limit of any country. Due
to globalization and free market economy, this industry is facing severe competition in any
country and implementation of WTO will further increase competition. The overall
performance of Bank does not only depend upon the banking industry itself but also on
the Performance of economy where it is operating.
The Banking sector is one of the major service sectors in Bangladesh economy. There are
several types of banks, which differ in the number of services they provide and the clientele
they serve. Although some of the differences between these types of banks have lessened as
they begin to expand the range of products and services they offer, there are still key
distinguishing traits.
Commercial banks, which dominate this industry, offer a full range of services for
individuals, businesses, and governments. Commercial banks are the primary contributor to
the economy of a country. So we can say commercial banks are a profit making institution
that holds the deposit of the individuals & business in checking & savings account and then
uses these funds to make loans. Banks collect deposit at the lowest possible cost and provide
loans and advances at higher cost because they are profit earning industries.
It has become essential for every person to have some idea on the bank and banking
procedure. By an internship program in bank, students can obtain practical knowledge, which
helps to know real life situations, helping them to launch a career with some practical
experience.

1.2 Origin:
As a prerequisite for the Bachelor of Business Administration Degree of The Daffodil
University Bangladesh, I was required to complete an internship in a suitable business
organization and submit a report on my findings. I had been selected to work as an Internee in
Export-Import Bank of Bangladesh Limited, Uttara Branch for a period of 3 months from
March 11 2014 from June 11 2014
Daffodil International University

2 | Page

Md. Mosharraf Hossain Mazumder, Vice President, HR division, EXIM Bank Ltd of
Bangladesh appointed me as an Internee. After discussion and getting consent, I started to
work on the project titled Financial Performance Analysis of Export Import Bank Ltd..
Without practical exposure, theory can never be fruitful. For this MBA program has been
designed in such a way that a student can get practical knowledge. A student needs to go for
practical orientation in some organization where his/her duty is to bear all the some things
from operations and activities of that branch.

1.3 Background:
EXIM Bank Ltd Limited is one of the leading local private commercial banks in Bangladesh.
This bank has already 78 branches located in different places and also going to establish more
branches. This organization has created a positive image to the customers mind by providing
better service. This bank has introduced some modern banking scheme that has got high
market demand. As it maintain the pace with competitive business world, its activities,
culture, philosophy and style leads an intern student to be the best at any field of working life.

1.4 Objectives:
The objective of the study may be viewed as:

General Objective

Specific Objective

General Objective:
The general objective of the study to describe Financial Performance Analysis in EXIM Bank
Limited
*Specific Objectives:
1) To provide an overview on the major Financial practices of EXIM Bank Ltd.
2)To Analysis the financial performance of EXIM Bank Ltd.
3)To identify the weaknesses Of Financial Performance Analysis of the Bank.
Daffodil International University

3 | Page

1.5 Scope:
The scope of the study may be stated as under:

The study would help top management in planning and decision Of Financial
Performance Analysis

The study would help management in identifying the key areas of weakness and
strength.

The study would aware the top management to take corrective and appropriate
measure timely to improve the companys Financial and other performance.

The study would also help the shareholders as a guide to companys present and
future position (Financial Position).

1.6 Methodology:
The report is based on secondary source and primary data collection survey. And the major
source of data for preparing the report is based on secondary information like annual reports.

Primary Data:
I have collected primary data by interviewing clients of the EXIM Bank Ltd, Uttara Branch. I
have also included valuable insights of the employees. These data help me to determine the
business development trend of the branch. For primary data, I have conducted a survey of
few respondents to collect the observations and analyze the data for evaluating the business
development trend of the branch.

Secondary Data:
I have used different types of secondary data in completion of my internship report. Here
important to mention that no questionnaires are used for collecting the data.

Daffodil International University

4 | Page

Sources of information and collection of data:

Face to face interview with clients.

Information regarding new Service development.

Bangladesh Bank Report.

From Daily Newspaper.

1.7 Limitations:
By blending all my knowledge, I tried my level best to keep the limitations as short as
possible. But beside all the efforts I faced the following limitations:

There were scarcity of adequate data and information on the relevant topic as some
data are treated as very much confidential.

The interviewing process is lengthy.

Sometimes the client does not cooperate easily.

It is time consuming.

Omission and error may be there due to may lack of experience in preparing a
professional report like this one.

The officers of a bank are too much busy to provide information and interviews to
may project.

Daffodil International University

5 | Page

CHAPTER-02
Daffodil International University

6 | Page

2.1 An Overview of EXIM Bank Ltd:


The EXIM Bank of Bangladesh Limited is an "Islamic Shariah Based Commercial Bank",
which is committed to provide high quality financial services to contribute to the growth of
G.D.P. (Gross Domestic Product) of the country through stimulating trade & commerce,
accelerating the pace of industrialization, boosting up export, creating employment
opportunity for the educated youth, Poverty alleviation, raising standard of living of the
limited income group and over all socio-economic development of the country. The Bank
offers full range of Personal, Corporate, International Trade, Foreign Exchange, Lease
Finance and Capital Market Services. EXIM Bank Ltd is the preferred choice in banking for
its friendly and personalized services, cutting edge technology, tailored solutions for business
needs, global reach in trade and commerce and high yield on investments, assuring
excellence in Banking Services.
EXIM BANK LTD AT A GLANCE
Name of the Institution

Export Import Bank of Bangladesh Limited

Date of incorporation

June 02,1999

Commencement of operation

August 03.1999

Authorized Capital

Tk. 10000.00 million (December 31st 2010)

Paid up Capital

Tk. 225 million (initial) Tk. 6832.27 million

Converted to Islamic bank

(as on 31 December, 2010)


July 01,2004

Daffodil International University

7 | Page

Legal form

"A Sbariah based Islamic Bank"

Slogan

"Together Towards Tomorrow"

Target customers

Individuals and Corporate customers

Deposits, accumulated (2010)

Tk. 94949.40 million

General Investments (2010)

Tk.93296.65 million

Investments (shares & securities)

Tk.6012.86 million

Credit Rating Long Term Short Term AA-(High Safety) ST-2(High Grade)
Notification of reporting
Registered Office

May 05,2011
SYMHONY Plot no.SE(F):9, Road No.142
Gulshan Avenue,Dhaka-1212,Bangladesh

Number of branch (31-12-2012)

78

Total manpower

1440

Chairman
Managing director

Mr. Md. Nazrul Islam Mazumder


Kazi Masihur Rahman

Web address

www.eximbankbd.com

2.2 Historical Background of EXIM Bank Ltd:


EXIM Bank Ltd was established in 1999 under the leadership of Late Mr. Shahjahan Kabir,
founder chairman who had a long dream of floating a commercial bank which would
contribute to the socio-economic development of our country. He had a long experience as a
good banker. A group of highly qualified and successful entrepreneurs joined their hands with
the founder chairman to materialize his dream. Indeed, all of them proved themselves in their
respective business as most successful star with their endeavor, intelligence, hard working
and talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder became the honorable
chairman after the demise of the honorable founder chairman. This bank starts functioning
from 3rd August, 1999 with Mr. Alamgir Kabir, FCA as the advisor and Mr. Mohammad
Liakotullah as the Managing Director. Both of them have long experience in the financial
sector of our country. By their pragmatic decision and management directives in the
operational activities, this bank has earned a secured and distinctive position in the banking
industry in terms of performance, growth, and excellent management. The authorized capital
Daffodil International University

8 | Page

and paid up capital of the bank are Tk.1000.00 million and Tk313.87 million respectively.
The bank has migrated all of its conventional banking operation into Shariah based Islami
banking since July/2004. Of its very beginning, EXIM Bank Ltd Bangladesh limited was
known as BEXIM Bank Ltd, which stands for Bangladesh Export Import Bank Limited. But
for some legal constraints the bank renamed as EXIM Bank Ltd which stands for Export
Import Bank of Bangladesh Limited.

2.3 Hierarchy of position in EXIM Bank Ltd:

Daffodil International University

9 | Page

2.4 Hierarchy of position in Principal Branch:

Daffodil International University

10 | P a g e

The Management Process of EXIM Bank Ltd:


Daffodil International University

11 | P a g e

For any financial and non financial organization Management is the most valuable and
important resources of any kind of organization. And a well-organize management provides
the organization to reach its ultimate goal. Management means planning, organizing, staffing,
directing and controlling of all financial and non financial resources of an organization.
Different aspects of management practice in EXIM Bank Ltd are discussed below.

a) Planning:
EXIM Bank Ltd has done its planning within the purview of the corporate plan. The
overall planning approach in EXIM Bank Ltd is top-down. Each branch can plan
according to the goal imposed by the corporate level. It doesnt plan independently. And
EXIM Bank Ltd has a planning division. This department is mainly responsible for the
overall planning.

b) Organizing:
EXIM Bank Ltd is organized as per the existing business locations. It has thirty three
branches, each of which is a separate entity. Each unit is responsible for own performance
and a Senior Vice President followed by Manager Heads each. He is directly responsible
for the performance of their unit. Within each branch it is organized functionally.

c) Staffing:
The recruitment in EXIM Bank Ltd is done in two ways. One as a Probationary Officer
for the management program and it has a probation period of one year. Another one is
non-management level as Trainee Officer. Probationary Officer is recruited in officer
category and their career path is headed towards different managerial jobs.

d) Directing and Controlling:


The Management approach in EXIM Bank Ltd is top-down or authoritative. Information
just seeks through lower management layer. Works are designed in such a way that one
cannot leave without clearing the tasks as he is assigned for a day. Sitting arrangement in
all office is done in a way that the superior can monitor the subordinate all time.
Budgeting, rewarding, punishing, etc. are also practiced as control mechanism.

e) Recruitment Process:
The set-vice rule of EXIM Bank Ltd states the recruitment policy of the bank. In general
the board of directors determines the recruitment policy of bank from time to time. The
minimum entry level qualification for any official position other than supportive
management is a Bachelors degree. However, informally the management prefers a
minimum masters degree for the appointed of probationary officers in the Executive
Daffodil International University

12 | P a g e

officer position. The recruitment for entry level positions begins with a formal written test
which is conducted and supervised by the Institute of Business Administration, University
of Dhaka. After successful completion of the written test, a personal interview is
conducted for the successful candidates by a panel of experts comprising of renowned
and prominent bankers of the country.

2.5 Corporate Culture of EXIM Bank Ltd:


The EXIM Bank Ltd is one of the most disciplined Banks with a distinctive corporate culture.
They are lived in shared meaning, shared understanding and shared sense making. People
related to the bank can see and understand events, activities, objects and situation in a
distinctive way. They mould their manners and etiquette, character individually to suit the
purpose of the Bank and the needs of the customers who are of paramount importance to
them. The people in the bank see themselves as a tight knit team or family that believes in
working together for growth. The corporate culture they belong has not been imposed; it has
rather been achieved through their corporate conduct.

2.6 Corporate Mission:


The bank has checked out the following corporate objectives in order to ensure smooth
achievement of its goals To be the most caring and customer friendly and service oriented bank.
To create a technology base most efficient banking environment for its customers.
To ensure ethics and transparency in ail levels.
To ensure sustainable growth and establish full value of the honorable shareholders.
Above all, to add effective contribution to the national economy.

Eventually the bank also emphasize on:


Provide high quality financial services in export and import trade.
Providing efficient customer service.

Daffodil International University

13 | P a g e

Maintaining corporate and business ethics.


Being trusted repository of customers money and their financial adviser.
Making its products superior and rewarding to the customers.
Sound Capital Base.
Enhancement of shareholders wealth.

Company Vision:
Export Import Bank Ltd. as the name implies, is not a new type of bank in some countries on
the global, but is the first of its kind in Bangladesh. It believes in togetherness with its
customer, in its march on the road to growth and progress with services. To achieve the
desired goal, it has intention to pursuit of excellence at all stages with a climate of continuous
improvement. Because it believes, the line of excellence is never ending. It also believes that
its strategic plans and business networking will strengthen its competitive edge over in
rapidly changing competitive environment.

Company slogan is:

2.7 SWOT Analysis of EXIM Bank Ltd.


SWOT analysis refers to analysis of Strengths, Weakness, Opportunities and Threats of the
organization. This analysis helps the organization to facilitate improve its future performance
in comparison to its competitors. An organization can also study its current position through
Daffodil International University

14 | P a g e

SWOT analysis. For these reason, SWOT analysis is considered as an important tool for
making changes in the strategic management of an organization.
2.7.1 Strengths

EXIM Bank has a Reputation all over the country for its excellent
service

The bank has already achieved a high growth rate of deposit, Loans
and advances, Import and Export business.

A well-educated and trained workforce is the major strengths of EXIM


Bank.

The bank has satisfactory IT infrastructure

EXIM Bank has satisfied customers

Product Diversification is also a major strength of EXIM Bank.

Skilled, creative & committed manpower

They have their own training center.

The working environment of the bank is very friendly, interactive and


informal. There is no barrier or boundary to communicate with the
superiors and the employees.

2.7.2 Weaknesses

The promotional activities of EXIM Bank are not adequate to gain


market share.

Most of the branch does not have any car parking facility.

Shortage of spaces.

In selecting people for providing services to the customers, the


employees personality, manners, attitudes and acceptability are not
properly examined.

Only few branches have spacious car parking facility, which discourage
some customers to deal with EXIM Bank Limited.

Daffodil International University

15 | P a g e

There are two major categorized employees one group who are from
different banks or joined through competitive exams, the other group
who joined here from different references. There is a big difference in
term of attitude, manner, working style, and behavior between the two
groups, which has bad impact to the service. Branch management also
loves to ignore the problem.

2.7.3 Opportunities

EXIM Bank has diversified product offering for Small and Medium
Enterprises (SMEs)

Foreign bank penetration may help in technology transfer in our


banking system catering the necessity of improving operational
efficiency. To increase operational efficiency

EXIM Bank can adopt

technology of foreign bank.

Different types of retail lending products have a great appeal to our


middle class people EXIM Bank can bring these products for retail
lending.

They do not look forward to increase their product or service basket.

They have a big opportunity if they provide online Banking system.

2.7.4 Threats

Increasing competition. More private commercial banks are providing


service in the market.

Foreign bank penetration is a major threat for banking industry. It is too


bad to lose market share.
Regulatory restrictions may be a cause of threats.

In our country industries are becoming sick at an increasing rate and


growth of industrialization is very slow in the country. Therefore, it is

Daffodil International University

16 | P a g e

very likely that poor industrial growth will affect the potentiality of EXIM
Bank.

CHAPTER-03

Daffodil International University

17 | P a g e

3. Analysis & Discussion:


3. 0 Performance of the Bank (EXIM Bank): A brief
review of the activities:
I take this opportunity to place before you the present overall operational of the
bank a follows:

a) During 2012 bank has made a net pre-tax profit of TK. 1133784578 after providing
provision as per requirements of Bangladesh Bank. The net pre-tax profit of TK
1901280224 of 2013 which shows Business performance shall much better.
b) The growth rate in formal sector Deposit in 2012 was significant, based on actual
expected growth rate of deposit in 2013 would be much better.
c) Banking with the poor (that is mainly with street children and poor family) under micro
credit and micro enterprise under family empowerment credit program is increase very
rapidly.

3.1 Ratio Analysis:


2008

2009

2010

2011

2012

2013

Current Ratio

0.133

0.280

0.306

0.157

0.179

0.223

Cash Ratio

0.007

0.074

0.059

0.060

0.088

0.076

Total Debt
Ratio

95.0%

93.2%

93.7%

91.1%

92.3%

Debt Equity

19.08

13.74

14.96

10.24

12.02

Short term Ratio

Long Term Ratio

Daffodil International University

88.8%
7.97

18 | P a g e

Equity
Multiplier

8.97

20.08

14.74

15.96

11.24

13.02

0.94

0.92

0.93

0.89

0.91

0.87

Return of
Assets

0.03%

0.06%

0.07%

1.07%

1.17%

1.29%

Return of
Equity

6%

9%

10.8%

12.1%

15.2%

11.5%

31.59

28.79

12.49

16.74

28.09

15.23

9.85

17.60

17.20

18.39

2.14

1.81

Current

Ratio

Long term Debt


Ratio
Profitability Ratio

Price Earning
Ratio-time
Earning per
share

Short term Ratio

Current

Ratio:

for

the

year

2008

to

2013

is

0.133,0.280,0.306,0.157,0.179,0.223. We know that the standard legend for current ratio of


any Bank or firm is 2. We found form our calculation that in the year 2010 the bank has 0.306
as its current ratio which indicates that the bank is in a good position to meet its obligation.
But in 2009 it decreased to 0.157 to 0.306 and 2013 it is increasing to 0.79 to 0.223which is
good for the bank. It means that the liquid condition of the bank is increased. Form the
forecasted overall data we can say that the bank has a little bit improved conditions.

Cash Ratio: We found form our calculation that Cash Ratio for the year 2008 to 2013 is
0.007,0.074,0.0590.060,0.088 and 0.076. We know that the standard legend for current ratio of
any Bank or firm is 2. In 2012 the bank has 0.088 as its cash ratio which indicates that the bank
is in a middle position to meet its obligation. Form the forecasted overall data we can say that
the bank has a little bit unimproved conditions.
Long Term Ratio

Total Debt Ratio: Total Debt Ratio is lower than better on any firm or bank. In year 2008 is
95.0%, 2009 is 93.2%, 2010 is 93.7% 2011 is 91.1% ,2012 is 92.3% and 2013 is 88.8% So we
can say this ratio analysis the last year (2013) is not excellent

Daffodil International University

19 | P a g e

Equity Multiplier: Equity Multiplier for the year 2008 is 20.08 for the year 2009 is 14.74
and for 2013 is 8.97. Form the forecasted overall data of we can say that the bank has a
improved conditions.

Long term Debt Ratio: Long term Debt Ratio for the year 2008 is 0.94for the year 2009 is
0.92, 2010 is 0.93, 2011 is 0.89 ,2012 is 0.91 and 2013 is 0.87. We know that the standard
legend for this ratio of any Bank or firm . We found form our calculation that in the year 2008
the bank has 0.94 as its ratio which indicates that the bank is in a low position to meet its
obligation. But in 2009 to 2013 it increased to 0.93 to 0.87 which is good for the bank. It means
that the condition of the bank is increased and decries. Form the forecasted overall data of we
can say that the bank has a little bit low positions.
Profitability Ratio

Return of Assets: Return of Assets is higher than better on any firm or bank. In year
2008 is 0.03%, 2009 is 0.06%, 2010 is 0.07% 2011 is 1.07% ,2012 is 1.17% and 2013 is
1.29% So we can say ROA increase it.

Return of Equity: Return of Equity is higher than better on any firm or bank. In year
2008 is 6%, 2009 is 9%, 2010 is 10.8% 2011 is 12.1% ,2012 is 15.2% and 2013 is 11.5%.
So we can say ROE boost it.

Price Earning Ratio-time: Price Earning Ratio-time is shows the degree confidence
those investors have in the Banks future performance. In few years condition 2008 to
2013 is 31.59 to 15.23 times.. Form the forecasted overall data of we can say that the
bank has a little bit improved conditions.

Earning per share: Earning per share is shows the degree confidence those investors
have in the Banks future performance. In few years condition 2008 to 2012 is is 9.85 to
1.81. Form the forecasted overall data of we can say that the bank has a upward and
downward conditions.

3.1.1 Growth in Net profit:


EXIM Bank is earning net profit increasingly.

Daffodil International University

20 | P a g e

Year

Net Profit

2008

57631505

2009

15003706
1

2010

20206829
4

2011
2012

43152272
3

2013

64010455
4
10324618
20

3.2 Foreign Exchange Business


Foreign Exchange Business stood at TK.108308.30 million in 2013 against TK.
61931 million of 2012 which is a sharp increase of 74.59% The break up of this
foreign exchange business as under:
Years

Particulars
Import

Export

Remittance

Total

2005

14908.90

4035.90

120.30

19065.10

2006

13363.07

4500.23

224.82

18088.12

2007

11576.71

5528.40

332.96

17438.07

11791.00

10714

775

23280.00

2008

Daffodil International University

21 | P a g e

2009

13482.30

9961.60

459.90

23903.80

2010

18343.80

12674.30

2341.10

33363.20

2011

22753.30

14433.20

1923.50

39110.00

2012

39459.50

12674.30

1099.40

61931.00

2013

68198.50

34975

5134.90

108308.30

Growth Rate

72.83%

63.65%%

367.06%%

74.89%

3.2.1 Import Business:


We also deal in import business and our import business is extended to
commercial importers (traders) for import of various shariah approved items and
industrial importers (Users) for import of raw cotton, yarn, clinker,
pharmaceutical raw materials, TV parts, Computer parts etc raw materials for
their industries.
We also provide post import finance such as MPI (LIM), LTR and HPSM (Lease
financing). Our post import finance is also provided for importing of capital
machinery.
The import business of EXIM Bank Tk.18343.80 million in the year 2011 that was
Tk.13363.07million in the year 2007. The growth rate in import business in 2011
was 36.06%
Table : 1
Year

Import
(Tk. In Million)

2008

11791.00

2009

13482.30

2010

18343.80

2011

22753.30

2012

39459.50

2013

68198.50

Growth Rate

72.83%

Source: Annual Report of EXIM Bank Ltd (2008 to 2013)

Daffodil International University

22 | P a g e

3.2.2 Export Business:


Foreign Exchange Trade of EXIM Bank Ltd is dealt with its 09 AD branches out of
which 4 branches are in Dhaka and the remaining 05 are in Chittagong, Khulna,
Sylhet, Rajshahi and Bogra. We as a 21st Century Bank, providing our services in
foreign trade through import and export finance and also playing significant role
in the area of foreign remittance. To facilitate the import obligation of our Bank
as well as considering the requirement of foreign currency of our country we
encourage potential exporters to do their export business with us. We provide
working capital on their requirement. Presently our export finance is extended for
RMG and for non-traditional item that is handled by a number of experienced
bankers. We offer competitive exchange rate for foreign currency to our valued
exporters. In the last 05 years our export business performance is significant.
Year

Export
(Tk. In Million)

2008

10714

2009

9961.60

2010

12674.30

2011

14433.20

2012

12674.30

2013

34975

Growth Rate

63.65%%

3.3 Liquidity:
Liquidity in the form of balance with Bangladesh Bank, EXIM Bank ( as the agent
of Bangladesh Bank) and cash in hand including Foreign Currency stood at TK.
5134.90 million as at 31st December 2013 as against TK. 1099.40 million in last
year which shows a growth of 367.06%. The Bank is committed to maintain the
cash and statutory liquidity requirement to effectively manage the asset and
liability portfolios of the bank in order to maximize the profit.

3.4 Investment:

Daffodil International University

23 | P a g e

The investment portfolio of the Bank was propelled efficiently in 2007 is


15096.83,2008

is

15312.9,2009

is

16440.26,2010

is

19951.3,2011

is

26580.28,2012 is 36680.28,and 2013 is 53908.57 .We are now concentrating our


essorts to increase quality investments to facilitate the investment earnings. It is
mentionable here that the assets quality of

some of our Branches have

deteriorated since 2008 resulting in the increase of classification but we have


succeaafully maintained required provision against classified investment as
depicted in the Audit Report. To overcome the situation, we launched special
drives to recover the sticky and classified investments. The following graphs
show the year wise position of investment:

3.5 Deposit:
Since deposit is the life blood of the, we drew up series of action plan, both
short term and long term to raise the deposit base of the bank in line with the
directives of the Bangladesh Bank. The short term action plan included launching
of special drives like deposit mobilization months during April to June. As a result
of continuous evaluation and monitoring we could significantly improve the
liquidity position as well as deposit mix in 2013. The following graph shows the
deposit mix of the bank:

3.5.1 Growths in Deposit and Advances

The growth rate in deposit in 2013 is remarkable. Cost of deposit for the year
under review is 7.38% compared to the year 2012 and effective planning and
utilization of deposits ensured a positive growth in revenue earning.

3.6 Risk Management:


Formal Sector

Risk Coverage

Cost benefit
Studies: Financing
With Collateral

Daffodil International University

Non Formal
Sector
Financial Cost
benefit Studies:
Financing With
Collateral Social
Fund Sadaqa Fund
Zakat Fund

Voluntary
Cost benefits
Studies:
Diminishing
partnership and
joint partnership.

24 | P a g e

3.7 Correspondent Banking Relationship:


EXIM Bank Ltd has a very strong correspondent Banking network around the
globe. The bank has SWIFT Bi-lateral key (BKE) arrangements with over 300
renowned banks and 2200 branches around the world. We are capable to
carryout International Trade and Foreign Exchange Business with most of the
global trading regions. We have 22Mos. Nostro Accounts with different
correspondent bank. We earn profits and rebates on overseas business though
these accounts. Due to our strong correspondent relationship with overseas
banks we enjoy credit lines of substantial amount offered by our different
correspondents,

which helps us honor our LC

and fulfill our payment

commitments aboard.

3.8 Corporate Governance:


In recent times, corporate governance has been considered most essential
aspect for efficient management of a business house. EXIM Bank gives much
emphasis on the corporate governance in promoting a sound management . the
objective of the bank is to comply with all regulatory requirements, ensure
equitable treatment of all stakeholders. It confirms full and fair disclosure of
financial and other material information and show respect for norms of business
ethics and social responsibility. The board of Directors, Executive Committee,
Audit Committee and other Committees of the management perform their
respective tasks with accountability and transparency. Besides to support and
enhance the practice of corporate governance, Board Audit Committee has been
formed according to BRPD Circular No 12 dated 23.12.2002 of the Bangladesh
Bank (BB).
3.9 SWIFT
EXIM Bank Ltd is the member of SWIFT and we have 19 SWIFT workstations in all
of our 15 AD branches. Besides our 48 branches are equipped with online
banking. We are trying to keep all the SWIFT workstations under online system.
Inward remittances are credited to the beneficiary 's account on the same day of
receipt if the beneficiary maintains A/C with them or within next 24 hours on
receipt of the same from our overseas correspondents. All correspondences of

Daffodil International University

25 | P a g e

foreign trade both export and import are communicated through SWIFT. As a
result foreign exchange trades become expeditious and instant.

3.10 Comparison with another Banks:


The recent measures taken by Bangladesh Bank with regard to Islamic banks are indeed
unprecedented and absolutely uncalled for. While it is true that ever since the inception of
Islamic banking system in Bangladesh, there was no expert group in Bangladesh Bank to
monitor the activities of Islamic banks in Bangladesh, Islamic banks operating in Bangladesh
have formed their own Shariah council to look into whether Islamic banking as a whole is in
compliance with the Islamic principles.
A central shariah council has also been formed. Although Bangladesh Bank has made a focus
group, consisting of members of Shariah council and Islami bankers, to formulate detailed
guidelines for the Islami banks on the basis of the Banking Company Act, Bangladesh Bank
utterly ignored the report that has been finalised by the focus group.
There are currently seven commercial banks operating under Islamic principles. They are:
Islami Bank Bangladesh Limited, Al-Arafah Islamic Bank, EXIM Bank Ltd, , Oriental Bank
Ltd, AB Bank Limited and Shahjalal Islami Bank Ltd. apart from some other banks that also
provide Islamic banking services in some of their branches.
It seems that Bangladesh Bank is creating unjustified trouble for the Islamic banks in the
country and at the same time strongly discouraging other commercial banks to have separate
Islamic, or interest-free windows that can run parallel with conventional windows. Onerous
laws could not only act as hindrance for the growth of Islamic banks in Bangladesh but for
the economic growth of the country as well.
Innovation is fuelling the development of the Islamic banking sector. In fact there are
limitless horizons for innovation which are not available to conventional banks due to their
limited and fixed mechanisms. The modes of mudarabah, musharakah, istisna and other
modes combining capital wide effort, experience and craftsmanship, open wide spheres of
innovation, and are paving the way for the introduction of new finance instruments following
Shariah guidelines.

Daffodil International University

26 | P a g e

To evaluate the performance of EXIM Bank I compare the performance of this


bank with four others commercial Islamic banks. These banks are:

Social Islami Bank Limited,

Al-Arafah Islamic Bank Limited,

Shahjalal Islami Bank Limited,

AB Bank Limited

3.10.1 Performance of year 2011 for the five banks

Name of Bank
Particulars

Social
Investment
Bank Limited

Exim Bank
Limited

Al-Arafah
Islamic Bank
Limited

Shahjalal
Islami Bank
Limited

AB Bank
Limited

2500000000

2000000000

2000000000

Authorized
Capital

4000000000

Paid up
Capital

1119555000

2142196800

1153175400

1871650000

743261800

Total Capital

1870944130

4569562645

2245131480

3040882802

4785078287

Capital
Surplus

124844830

498916145

189818051

1189432802

330507812

Total Assets

24546547255

51503027985

30182323406

28346996395

63549864403

Particulars

Social
Investment
Bank Limited

Exim Bank
Limited

Al-Arafah
Islamic Bank
Limited

Shahjalal
Islami Bank
Limited

AB Bank
Limited

Total Deposits

19648950065

41546568592

23009128287

22618187303

53375348391

Particulars

Social
Investment
Bank Limited

Exim Bank
Limited

Al-Arafah
Islamic Bank
Limited

Shahjalal
Islami Bank
Limited

AB Bank
Limited

16440259305

40195239222

22906367930

20616605335

40915352218

Total
Investment

Daffodil International University

27 | P a g e

Total
Contingents
Liabilities and
Commitments

9282109183

22632654873

3887484824

7471644932

27287649576

Investment
Client Deposit
Ratio (%)

88.38%

96.75%

99.55%

91.15%

76.66%

% of
Classisied
Investment
against total
Investment

4.93%

1.58%

3.72%

0.62%

4.31%

Profit after
tax and
provision

150037061

930843607

347314166

646992691

1903493845

Amount of
classified
Investment
during
current year

8811087545

635106791

854405627

128246000

779104000

Provision kept
against
classified
Investment

126856456

270763270

246477313

23009403

659944862

6900455

9389019

10723827

56817277

8.26%

9.07%

10.99%

10.40%

10.54%

Profit earning
Assets

21600795741

42357645536

25589351564

25303841268

49207751610

Non profit
earning Assets

2945751514

9145382449

4592971842

3043155127

14342112793

Provision
surplus
Cost of fund
(Excluding
Overhead
cost)

Daffodil International University

28 | P a g e

Return on
Investment

18.02%

8.77%

13.69%

22.87%

Social
Investment
Bank Limited

Exim Bank
Limited

Al-Arafah
Islamic Bank
Limited

Shahjalal
Islami Bank
Limited

AB Bank
Limited

1.19%

2.00%

1015%

2.28%

3.41%

Income from
Investment

100606038

205594883

2601615

97974405

1734306446

Earning per
Share

17.60

43.45

30.12

34.57

256.10

Net income
per share

17.60

43.45

30.12

34.57

256.10

Price Earning
Ratio- Time

28.79

9.02

14.62

Reserve Fund

70962659

1134640000

1091950000

243261679

2072540000

Shareholders
Equity

1665290000

4042530000

2037500000

2787731141

4511590000

Dividend

Bonus 17%

Bonus25%, 7

Bonus 20%

20%

Total Income

902503334

6407960000

2955610000

3589000000

4656581245

Total
Expenditure

421720430

4499760000

2199430000

2274000000

1331287400

Total Assets

24546547255

51503030000

30182320000

28346996395

63549860000

Fixed Assets

443280210

200700000

334480000

127000000

2381000000

Total Liability

22881255235

47460500000

30182323406

25559265254

59038275138

Foreign
Exchange
Business

23923800000

39757360000

40574000000

69117960000

12013

40966

14774

Particulars

Return on
Assets

No. of

10

117900140000

15000

23284

Daffodil International University

29 | P a g e

Shareholders
No of Share

11195550

21421968

11531754

18716500

7432618

No. of
Employees

674

1104

1033

555

1725

No. of Branch

24

35

46

26

71

Source of different bank annual report 2009


Different Bank Comparison Table
Highes
t
Positio
n

Name of Bank

Particulars
Social
Investment
Bank Limited

Exim
Bank
Limite
d

Al-Arafah
Islamic Bank
Limited

Shahjalal
Islami
Bank
Limited

AB Bank
Limited

S P

Paid up
Capital

3 5

EXIM
Bank

Total Capital

2 1

AB
Bank

Capital
Surplus

4 3

Sjibl
Bank

Total Assets

1 1

AB
Bank

Total
Deposits

1 1

AB
Bank

Total
Investment

1 1

AB
Bank

Total

2 1

AB

Daffodil International University

30 | P a g e

Contingents
Liabilities
and
Commitment
s

Bank

Investment
Client
Deposit Ratio
(%)

2 5

AIBL

% of
Classisied
Investment
against total
Investment

1 2

SIBL

Profit after
tax and
provision

2 1

AB
Bank

Amount of
classified
Investment
during
current year

SIBL

Provision
kept against
classified
Investment

AB
Bank

Particulars

Provision
surplus
Cost of fund
(Excluding

Social
Investment
Bank Limited

EXIM
Bank
Limite
d

Al-Arafah
Islamic Bank
Limited

Shahjalal
Islami Bank
Limited

AB
Bank
Limite
d

Highe
st
Positi
on

AB
Bank

AB

Daffodil International University

31 | P a g e

Overhead
cost)

Bank

Profit earning
Assets

AIBL

Non profit
earning
Assets

AIBL

Return on
Investment

SIBL

Return on
Assets

AB &
Sjibl
Bank

Income from
Investment

AB
Bank

Earning per
Share

AB
Bank

Net income
per share

AB
Bank

Price Earning
Ratio- Time

SIBL

Reserve Fund

AB
Bank

Shareholders
Equity

AB
Bank

Total Income

AB
Bank

Total
Expenditure

EXIM
Bank

Total Assets

AIBL

Fixed Assets

AB
Bank

Daffodil International University

32 | P a g e

Total
Liability

AB
Bank

Foreign
Exchange
Business

EXIM
Bank

No. of
Shareholders

AB
Bank

No. of Branch

AB
Bank

Total

2
7

84

60

4
9

72

(P = Position, S = Score and Score is measured as per weightage 4 for 1 st


position, 3 for 2nd position, 2 for 3rd position, 1 for 4 th position and 0 for 5 th
position.)

In year 2007 EXIM Bank is in better position in the area of Price Earning RatioTime, Return on Investment, Amount of classified Investment during current
year, % of Classified Investment against total which are the indicators for
evaluating performance of a commercial Islamic Bank.
On the otherhand, AB Bank Limited, Shahjalal Islami Bank Limited, , Al-Arafah
Islamic Bank Limited, is in better position in the area of Capital, Deposit, Loans &
Advances, and Total Assets etc.

Daffodil International University

33 | P a g e

CHAPTER-04

4.0 Findings:

Daffodil International University

34 | P a g e

1) I found from my Calculation that During 2012 bank has made a net pretax profit of TK.1133784578 after providing provision as per requirement
of Bangladesh Bank. And 2013 is 1901280224.
2) The growth rate in formal sector Deposit in 2012 was significant,
based on actual expected growth rate of deposit in 2013 would be much
better.
3) Banking with the poor under micro credit and micro Enterprise under
family empowerment credit program is increase very rapidly.
4) Current Ratio: I found from my calculation that the liquid condition of
the bank is increase. From the forecasted overall data I can say that the
bank has a little bit improve conditions.
5) Cash Ratio: Cash ratio which indicates that the bank is in the middle
position to meet the obligation. From the forecasted overall data I can say
that the little bit unimproved conditions.
analysis the last year (2013)is not excellent.
7) Equity Multiplier: Equity multiplier for the year 2008 is 20.08 for the
year 2009 is 14.74 and for 2013 is 8.97 .From the forecasted overall data
of I can say that the bank has a improved conditions.
8) Long Term Debt Ratio: I know that the standard legend for this ratio of
any Bank or firm .I found from my calculation that in the year 2008 the
bank has o.94. But in 2009 to 2013 it increased to 0.93 to 0.87 which is
good for bank .It means that the condition of the bank is increased . From
the forecasted overall data of I can say that the bank has little bit low
positions.
9) Return on Assets is higher than better on any bank or firm . In the year
2008 to 2013 are increase of return on assets.
10) Return On Equity: I found my calculation that return on equity is higher
than better on any firm or bank . So I can say return on equity boost it.

Daffodil International University

35 | P a g e

CHAPTER-05

Daffodil International University

36 | P a g e

5.0 Recommendation
Though EXIM Bank has become one of the leading commercial Islamic banking
processes in Bangladesh within a short time, therefore some recommendations
have been made for improving its overall performance. These are:

Bank had net pre-tax profit of satisfied position.

The growth rate in formal sector Deposit was significant based on actual
expected growth rate of deposit in 2012 to 2013 would be much better.

Bank should micro credit and micro enterprise program is increase very
rapidly.

In the competitive banking environment, EXIM Bank should have planned


diversification, both in relation to sources and uses of funds which will help
improve the liquidity position of the banks.

EXIM Bank should introduce electronic devices which are used in international
banking operations e.g. E-commerce which represents paperless method of
undertaking commercial transactions over the computer network.

Promotional activities of EXIM Bank are not satisfactory. So it should be


increased.

More attention should be given to recruit qualified people at different levels of


management

Cash ratio is the little bit unimproved condition the bank can try improve .

Total debt ratio analysis of the 2013 is not excelent.The bank try growth of
total debt ratio.

Long Term Debt Ratio has little bit low positions. the bank has perfect
position.

Banking is a service-oriented business. So authority should be aware of


improving their service quality

37

CHAPTER-06

38

6.0 Conclusion:
Despite all the economic challenges and political crisis faced in previous years EXIM Bank
Ltd. stood resolute in its firm commitment to financial growth. The objective of EXIM Bank
Ltd. is geared towards the changing needs of its customers. The Bank is on a strong footing to
impart tailored services. The focus of the Bank lies on its large clientele base and their
expectation from the Bank. It is the aim and intension of EXIM Bank Ltd. to accelerate the
trend of growth and development in advanced level, so as to reach a position where the
Banks brand will be associated with being the leading provider of quality banking and
financial services in the country.Modern Commercial Banking is an exacting business.
Commercial banks are great monetary institutions, important to the general welfare of the
economy more than any other financial institution. It has a vastly sobering and exacting
responsibility.
Today is not like yesterday and tomorrow will be different from today. Given the fast
changing, dynamic global economy and the increasing pressure of globalization, l
consolidation and disintermediation, it is essential that EXIM Bank Ltd Limited should make
a reasonable change in its inanimate environment to serve its consumers in a more attractive
and effective way that are sensitive to these changes. To improve the customer service
programs further, EXIM Bank Ltd Limited should adopt some of the industry best practices
that are not practiced currently.
Financial Performance Analysis means the Financial logic by which the business unit hopes
to achieve its Financial objectives. Through Finance segmentation, targeting, and positioning,
the company decides which customers it will serve and how. It identifies the total Finance,
then divided it into smaller segments, select the most promising segments, and focuses on
serving and satisfying customers in these segments.
Guided by Financial Performance Analysis, the company designs a Financial mix made up of
factors under its control - To find the best Financial Performance Analysis and mix, the
39

company engages in Financial analysis, planning, implementation, and control. Through


these activities, the company watches and adapts to the actors and forces in the Financial
environment.

40

Bibliography
References:
Books
1

David W. Cravens & Nigel F. Piercy, Strategic Marketing 8th Edition, Inc, Singapur,
2006.

Philip Kotler, Marketing Management 11th Edition, Inc, USA, 2003.

Philip Kotler, Principles of Marketing 13th Edition, Inc, USA, 2005.

Websites

http://www.assignmentpoint.com/business/internship-report-on-marketing-strategyof-exim-bank-limited.html, retrieved on 15/11/2013 at 6p.m.

http://www.scribd.com/doc/75455732/Assignment-on-Marketiong-Strategy-of-EximBank, retrieved 18/12/2013 at 4p.m.

http://www.eximbankbd.com/deposit, retrieved on 10/12/2013 at 10p.m.


http://www.eximbankbd.com/Investment, retrieved on 12/12/2013 at 8p.m.

41

Appendices
Appendix-1

42

Appendix-2

43

Appendix -3
Calculation of Ratio
Short term ratio or liquidity Ratios
(a) Current Ratio = Current Assets Current Liability
Current Ratio 2011 = 16699128827 74603311561 = 0.223838975476924or
0.223
Current Ratio 2010 = 9055414404 50469953986 = 0.1794218874562855 or
0.179
Current Ratio 2009 = 5711048492 36425064651 = 0.1567889733819103 or
0.157
Current Ratio 2008 = 8560838818 27941520250 = 0.306384146 or 0.306
Current Ratio 2007 = 6415497669 22881255235 = 0.280382243 or 0.280
Current Ratio 2006 = 2494263533 18710827752 = 0.133305889 or 0.133
Current Assets (CA) = Cash + other Banks and Financial Institution +other assets
CA2011 = 5667502592 + 3936428599+ 7095197636 =16699128827
CA2010 = 4451589136 + 1683833829 + 2919991439 = 9055414404
CA2009 = 2217695475 + 1439982618 + 2053370399 = 5711048492
CA2008 = 1670122228 + 5074985082 + 1815731508 = 8560838818
CA2007 = 1702267359 + 4602084949 + 111145361 = 6415497669
CA2006 = 138424500 + 1572218612 + 783620421 = 2494263533
Current Liability (CL) = Borrowing other bank +Deposit +Other liability
CL2011 = 3700000000+ 66461721747 + 4441589814 = 74603311561
CL2010 = 3280000000 + 44350891493 +2839062493=50469953986
CL2009 = 2900000000 + 31588160397 +1936904254 = 36425064651
CL2008 = 2400000000 + 24099823370 +1441696880 = 27941520250
CL2007 = 2130000000 + 19648950065 + 1102305170 = 22881255235
CL2006 =1770000000 + 16170514627 + 770313125 = 18710827752
(b) Cash Ratio = Cash Current Assets
Cash Ratio2011 = 5667502592 74603311561 = 0.0759685123007699or 0.076
Cash Ratio2010 = 4451589136 50469953986 = 0.0882027579663504or 0.088
Cash Ratio2009 = 2217695475 36425064651 = 0.0608837759451751or 0.060
Cash Ratio2008 = 1670122228 27941520250 = 0.059772 or 0.059
Cash Ratio2007 = 1702267359 22881255235 = 0.074396 or 0.074
Cash Ratio2006 = 138424500 18710827752 = 0.007398 or 0.007
Cash2011 = 5667502592
Cash2010 = 4451589136
Cash2009 = 2217695475
Cash2008 = 1670122228
Cash2007 = 1702267359
Cash2006 = 138424500

44

Long term Ratio


a. Total Debt Ratio = (Total assets Total equity) Total assets
Total Debt Ratio2011 = (83961647464 - 9358334553) 83961647464 =
0.88854036532 or 0.888
Total Debt Ratio 2010 = (54665814961 - 4195859484) 54665814961 =
0.92324527701 or 0.923
Total Debt Ratio 2009 = (39980819472 - 3555754821) 39980819472 =
0.91106348324or 0.911
Total Debt Ratio 2008 = (29808880564 -1867360314) 29808880564 =
0.937355571 or 0.937
Total Debt Ratio 2007 = (24546547255 -1665292020) 24546547255 =
0.93215779 or 0.932
Total Debt Ratio 2006 = (19691527711 - 980699959) 19691527711 =
0.950196858 or 0.950
Total Equity 2011 = 9358334553
Total Equity 2010 = 4195859484
Total Equity 2009 = 3555754821
Total Equity 2008 = 1867360314
Total Equity 2007 = 1665292020
Total Equity 2006 = 980699959
Total Assets2011 = 83961647464
Total Assets2010 = 54665814961
Total Assets2009 = 39980819472
Total Assets2008 = 29808880564
Total Assets2007 = 24546547255
Total Assets2006 =19691527711
b. Debt Equity = Total Debt Total equity
Debt Equity 2011 = 74603311561 9358334553 = 7.97
Debt Equity 2010 = 50469953986 4195859484 = 12.02
Debt Equity 2009 = 36425064651 3555754821= 10.24
Debt Equity 2008 = 27941520250 1867360314 = 14.96
Debt Equity 2007 =22881255235 1665292020 =13.74
Debt Equity 2006 = 18710827752 980699959 = 19.08
Total Debt 2011 = 74603311561
Total Debt 2010 = 50469953986
Total Debt 2009 = 36425064651
Total Debt 2008 = 2794152250
Total Debt 2007 = 22881255235
Total Debt 2006 = 18710827752
c. Equity Multiplier = Total Assets Total Equity
Equity Multiplier
8.971
Equity Multiplier
13.0285
Equity Multiplier
11.243

2011

= 83961647464 9358334553 = 8.971857865145933or

2010

= 54665814961 4195859484 = 13.02851422204586or

2009

= 39980819472 3555754821 = 11.24397532582295or

45

Equity Multiplier

2008

= 29808880564 1867360314 = 15.96311 or 15.96

Equity Multiplier

2007

= 24546547255 1665292020 = 14.74009 or 14.74

Equity Multiplier

2006

= 19691527711 980699959 = 20.07905 or 20.08

d. Long term debt ratio = Long term debt (Long term debt +
Total Equity)
Long term debt ratio 2011 = 66461721747 (66461721747 + 9358334553) =
0.87
Long term debt ratio

2010

= 44350891493 (44350891493 + 4195859484) =

0.91
Long term debt ratio

2009

= 31588160397 (31588160397 + 3555754821) =

Long term debt ratio

2008

= 24099823370 (24099823370 + 1867360314) =

0.93
Long term debt ratio

2007

= 19648950065 (19648950065 + 1665292020) =

0.92
Long term debt ratio

2006

= 16170514627 (16170514627 + 980699959) = 0.94

0.89

Profit Ratio
e. Return of Assets (ROA) = Net Income Total Assets

Return of Assets (ROA) 2011 = 1083419151 83961647464 = 0.0129


Return of Assets (ROA) 2010= 640104654 54665814961 = 0.0117
Return of Assets (ROA) 2009 = 431522723 39980819472= 0.0107
Return of Assets (ROA) 2008 = 202068294 29808880564 = 0.006779 or 0.007
Return of Assets (ROA) 2007 = 150037061 24546547255 = 0.006112 or 0.006
Return of Assets (ROA) 2006 = 57631505 19691527711 = 0.002927 or 0.003
Net income 2011 =1083419151
Net income 2010 = 640104654
Net income 2009 = 431522723
Net income 2008 = 202068294
Net income 2007 = 150037061
Net income 2006 = 57631505
f.

Return of Equity (ROE) = Net Income Total Equity

Return of Equity (ROE)

2011

= 1083419151 9358334553= 0.115

Return of Equity (ROE)

2010

=640104654 4195859484 = 0.152

Return
Return
Return
Return

of
of
of
of

Equity
Equity
Equity
Equity

(ROE)
(ROE)
(ROE)
(ROE)

2009
2008
2007
2006

=
=
=
=

431522723 3555754821 = 0.121


202068294 1867360314 = 0.108211 or 0.108
150037061 1665292020 = 0.090097 or 0.090
57631505 980699959 = 0.058766 or 0.060

46

g. Price Earning Ratio = Price per share Earning per share


Price
Price
Price
Price
Price
Price

Earning
Earning
Earning
Earning
Earning
Earning

Ratio
Ratio
Ratio
Ratio
Ratio
Ratio

2011
2010
2009
2008
2007
2006

=15.23
=28.09
=16.74
= 12.49
= 28.79
= 31.59

MD. ABDUL BATEN


ID: 131-14-394
47

Major in Finance
MBA Program
Daffodil International University
Uttara Campus
Mobile: 01924576457

48