Internship Report on Loan &

Advances of Bank Asia Limited

Submitted To
Professor Dr. Mostafa Kamal
Professor & Dean (Academic Affairs)
Department of Real Estate
Faculty of Business & Entrepreneurship
Daffodil International University

Prepared By

Anisur Rahman
ID: 171-11-399
Major in Finance
Bachelor of Business
Administration
Department of Business Administration Faculty
of Business and Entrepreneurship Daffodil
International University

Submission Date: 03-10-2020

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 Letter of Transmittal

12 August 2020
Professor Dr. Mostafa Kamal
Professor & Dean (Academic Affairs)
Department of Real Estate
Faculty of Business & Entrepreneurship
Daffodil International University

Subject: Submission of Internship Report on Loan and Advance of Bank Asia

Limited.

Dear Sir,

I am pleased to present my disclosure statement on "Current Loan Status and

Advancement of Savar Branch of Bank Asia Ltd.", which you provided to me through my BBA
program. I have made every effort to write all sorts of relevant information that can give a general
idea of this topic. I worked for 4 months at Bank Asia Limited and saw their work. I have tried to
collect as much information as possible about the ad. I hope this report meets the required
standards. Therefore, I request and hope that my report will be of interest to you and approved by
the review panel

Sincerely,
Anisur Rahman
ID: 171-11-399
Major in Finance
Bachelor of Business Administration
Department of Business Administration Faculty
of Business and Entrepreneurship

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 Daffodil International University

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 Certificate of Approval

This is proof that Anisur Rahman with identification number 171-11-399 BBA (Finance) is a full-
time student of the Business Administration Department of the School of Business and
Entrepreneurship at Daffodil International University. He has completed his tenure at First Bank
Asia Limited and has arranged these activities under my direct supervision. Its role is Loan and
Advance Research Bank Asia Limited'. I think the announcement is necessary to meet some of
the BBA's responsibilities.

Professor Dr. Mostafa Kamal

Professor & Dean (Academic Affairs)
Department of Real Estate
Faculty of Business and Entrepreneurship
Daffodil International University
 Acknowledgement

Successful completion of a course requires the support of many staff members and I am fortunate
to have support, guidance and control throughout all stages of my coaching career and my
friends. First of all, I want to thank the measure of grace and deep love of Almighty God. I would
like to express my sincere gratitude to my educational supervisor, Professor Dr. Mostafa Kamal,
Counselor at Daffodil International University. For your support and guidance in preparing this
report, I would like to express my gratitude to the Director, Mr. Abdul Latif, and the Branch
Manager, MD. Delovoir Hossein Sidi, who guided me during my internship. I would also like to
thank all the departments and friends who came to work over the course of four months, who
created education for me. Special thanks to all credit bureaus from credit bureaus who helped me
prepare my resume. It is happiness and joy for me to work in such a wonderful department.
Finally, my sincere thanks to my family, friends and classmates who helped me when I needed it.
 Executive Summery

This notice is subject to lending rates and advance payment to Bank Asia Limited, Savar branch.
Through this report, the reader will be able to learn about the current state of the loan and about
the forthcoming branch of Asia Limited in Savar. This report also describes the different types of
loans that they offer to their clients and the different treatments that lead to different types of
loans. This article will provide readers with more information about the various divisions of Bank
Asia Limited, the branches in Savar and how they do their job. The two branches of the branch
are described in detail. First the report will tell the reader about the banking institution of the
branch, which is to give the reader the importance of the general banking process and then the
people. Use business products that banks provide, for example, savings accounts, accounts,
pension plans, fixed deposits and more. Second, the reader will be familiar with the credit lending
process based on its product portfolio like its loans, home finances, fixed assets, unsecured loans
and other and last but last but not least, the reader will be able to understand the effectiveness of
all organizations in the market, even if the financial analysis (return on fairness, part income,
return on assets, etc.)
 Table of Contents
Chapter Topic Name Page
1 1. Introduction of The study 08
Introduction 2. Origin of The study 08
3. Objective of The study 08
4. Scope of The study 09
5. Methodology of the study 09
6. Limitation of the study 09
2 1. History of Bank Asia Ltd. 10
Overview of The 2. Vision of Bank Asia Ltd. 10
3. Mission of Bank Asia Ltd 11
Bank
4. Objective of Bank Asia 11
5. Corporate Milestones 13
6. CSR and Donation 15

1. General Banking 16
2. Customer Service 16-19
3
3. Foreign Exchange Department 20
Departments 4. Credit Department 20
5. Credit Product 21
6. Categories of Loan and Advance 22
7. Default Loan Classification 23-24
1. Loan and Advance Statistics 25
4 2. Trades & Commerce 25-26
Loan and Advance 3. Construction 26-27
Statistics 4. Consumer Finance 28-29
5. Total Loan and Advance Statistics for 29-30
the Quarters
5 1. Ratio Analysis 31
Financial Statement 2. Debt to Equity 31-32
Analysis 3. Return on Assets (ROA) 33-34
4. Return on Equity (ROE) 34-35
5. Net Profit Margin 36-37
6. Earnings Per Share 37-38

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 7. Cost of Deposits (COD) 39-40
8. Loan Deposit Ratio 40-41
9. Loan to Asset Ratio 41-42
10. Price Earnings Ratio 42-43
11. Burden Ratio 44-45
6 1. Finding 46
Conclusion 2. Recommendation 47
3. Conclusion 47-48

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 Chapter Ones:
Introduction

1. Introduction of The study

The main purpose of this report is to review the Loans and Research of Bank Asia Ltd. The
report also outlines loan approvals, their safety and audit procedures, and identifies loan
repayments across a range of projects over the past year and offers a comparison of them.
Finally identify some issues related to lending and advancement and provide some
recommendations for improving the Loan and Priority services.

2. Origin of The study

The Bachelor of Business Administration (BBA) is a four-year, four-year course designed

with a strong mix of theoretical and practical aspects. In the final year of the BBA course
students will be required to work in an organization for the skills required to complete a
BBA degree. This period is called internship time. Internships help students apply all
theoretical knowledge to hands-on activities that are accomplished during a four (4) year
course. I assigned to Bank Asia Limited, Savar Branch For my job. I joined Bank Asia
limited, Savar Review on 02
February, 2020 to complete my work. It is a four (four) month course ending on 03
June, 2020. Students must prepare a working report under the supervision of a teacher
for the chosen course. The subject of my working statement is "Current loan status and
promotion of Bank Asia Ltd, Savar Branch". With the help of my supervisor and the staff of
the organization I have tried my best to create an ad that will showcase the work experience I
have throughout my career working hours.
3. Objective of The study
 To have idea regarding various types of Loan and Advances of Bank Asia
 To identify the loan sanction procedure in different sectors in last some years
 To identify the credit approval, their securities and monitoring process of
Bank Asia
 To identify the recovery rates of the loans in different sectors in last some years and
have a comparison among them
4. Scope of The study

These reports are intended to provide insight into the simplified practices of Bank Asia.
Using all my experience I try to have all of the basics of the liquid process control. I focus
on what is a liquid asset, what is possible easily, what is management practices
simplified, The Bank of Bangladesh needs of management simplification all bank waste. I
am also trying to show how The Bank Asia Limited touches everything Ease of operations,
how to manage emergency funds and how to spend them money in the profit. The purpose of
the paper will be to focus on how the Bank Asia. The Financial Institution has control over
the efficiency and completeness of the Financial Institution on liquidity management of
commercial banks. And finally I draw the conclusion for simple governance
management of Bank Asia Limited.

5. Methodology of The study

About preparing the report I have used two different sites. They are,

Primary Source
Interview with the police
Self-perception
Face to face rotation
Observe when working on credit dept
Consultation Interviews with staff and customers
Secondary Source
 Website of Bank Asia Limited
Annual report of the bank
The Internet
Office information
Select Book
Working pape

6. Limitation of The study

Upon completion of the declaration I will face some restrictions. They are,

Insufficient information provided on the website

The office staff was unable to provide enough information due to lack of time
Not all information will be collected due to confidentiality
Completion of such a statement of the time available is not enough

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 Chapter Two: Overview of the Bank

1. History of Bank Asia Ltd

Bank Asia Limited is a term bank-based private enterprise established in accordance

with the vision of the Bank Company Act, 1991 and established in accordance with the
Government Company Policy in accordance with the Company Policy, 1994 for the
September 28, 1999. The bank has been in business operation since November 27, 1999 with the
start-up of the Company Office of the Office of Room Rang Brabant. The public response
has resulted in the Bank continuing its plans of expanding its network. The opening of the
main office has made great strides and the completion of the opening of the Gulshan and
Chittagong branches has widened Bank Asia's margin to bring its services to the benefit of the
population. In a short time, the bank opened four other branches in Dhaka and two branches in
Sylhet and Kishorgonj. In February 2001, Bank Asia took over the operations of Bank of Nova
Scotia, the first venture capital bank in Bangladesh. Bank Asia then took over the Muslim
Commercial Bank of Pakistan's activity in Bangladesh in December 2001. These tough actions
could lead to some decision-making committed and yet dedicated team of professionals who
today put their most effort into building a bank as one of the leading leadership concerns in the
industry.

2. Vision of Bank Asia Ltd

The Bank of Asia's vision is to bring the poor and financially disadvantaged in Bangladesh
past by a new generation in the millennium, which is having an impact on the dream
country.
Try to make money savings in the direct market
To play an important role in human resource development and job creation
To develop effective business management systems

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3. Mission of Bank Asia Ltd

To help our clients provide good services and participate in the growth and
expansion of business in the country.
To establish high standard of fairness and bring total satisfaction to our customers,
partners and employees.
To become one of the most demanding people in the country, provide the latest
technology developed by our highly skilled team.
Providing the best prices based on green products and services.
Embracing the necessary skills and technology
Develop a culture of innovation and continuous improvement
Ensuring the highest return / cost to shareholders.
Estimating business capital and opening up a human side of the bank

4. Objective of Bank Asia Ltd

Maintain good relationships with customers and customers

High customer satisfaction
Give priority to the least frequently asked questions of the consumer.
Provide better service and better products to customers
Works for all by setting up branches in every country
More value to stakeholders through better operational value
Establish high standards of courtesy and courtesy
5. Corporate Milestones
First Branch Authorization
Banking Company
License Authorization
Certificate of Entrepreneurship
Business Certificate
Date of IPO purchase
IPO oversubscribed by
Number of Limits and Fractions
Started working at the Bank
Start of Operation of Islamic Banking
Member, Dhaka Stock Exchange (DSE)
Start a Business at a Business Place
Government tax revenues
Statutory Reserve
Accept for investments and future growth
Benefit from Corporate Responsibility (CSR)
Number of foreigners
Number of ATM booths
Number of Leg Vehicles
Number of Crops / SME
Start a Business at a Business Place
6. CSR and Donation

Societies have a strong presence in the community and in the national economy. They manage
large amounts of capital and there may be large sums of cash money for their public
investments. Some companies engage in "clean green" or create interest in the role of the
company, but many large companies have dedicated time and money to environmental
protection and social services for the benefit of employees, customers and communities.
Bank Asia has been aware of the role of the venture capital firm since its inception in 1999. The
company looks beyond the short term earnings and focuses on the issues facing the
company. Financial companies do a good job and therefore expect to have good business.

Bank Asia has three major CSR projects. They are,

Scholarship for higher studies

Ophthalmological functions
Computerized Work Training Courses
 Chapter Three: Literature Review Loan
and Advance
1. General
Banking

General Banking offers services for customers, merchants, deposits, withdrawals, front desk,
deposit and money changers at the bank in addition to against before and abroad.

Multiple Deposits A / C, Transfer, Work on Finance, Assistance Registration Date, Financial

Rates, General Deposits, Refunds (P / O, DD, MT,TT) Financial Institutions, Banking
Institutions, Banks Asia Financial Institutions General A / C etc.

2. Customer Service
Customer service is important, but it is a broad concept in the banking sector. Basically,
banks are business-based services, so most of their operations involve services. When they sell
their products in financial and financial institutions, many of the products are easily traded on
their money. Customer management is often directly related to service issues, but many other
business operations are directly related to service issues.

Customer Service Product:

Savings account
Current account
Join Account
Pension deposit system
Fixed deposit
Double Benefit
Triple Benefit
Monthly Benefit
Saving Account: Bank Asia Limited's interest rate bank offers an interest rate of
5% per annum. The cashier can request a passbook and a visa card from the account at a
certain cost. The benefits that the customer will receive from the account are,
Check facility
SMS Banking
Online Banking
ATM Card Service
Transfer money from the budget to the Orientation Plan
Enter the foreign payment in the two TCs. & Taka draft

Current Account: From a financial point of view, the term "financial institution" refers
to a type of investment account with an authorized bank that allows withdrawals and
allows checks to be written to a section of the account. Benefits of the current cashier of
Bank Asia Limited,
Cheque-book Facility
Online Banking
SMS Banking
ATM Card Service
Fund Transfer Facility

Deposit Pension Scheme: The Deposit Pension Scheme Plus (DPS) is a deposit-based
payment (monthly) for each consumer. The buyer puts money into these accounts for
some time. And full approval will be paid to the customer. The advantages, conditions
and other problems that the DPS treasurer with Bank Asia Limited may have are as
follows,
Benefits
Interesting and competitive interest rate
Up to 90% lending
Do not hide costs
Tax benefits such as capital refunds
There is no online fee for monthly deposits
 Consumers will be willing to pay the Saving Account fee
Insurance: 3, 5, 7, 10 and 12 years
The deposit starts from Tk. 500 to Tk. 30,000 monthly

Commitments & Conditions

Only people can open a bank account

In case of early encashment, people will probably give a
growing value of the previous hold if that is achieved by the
time of encashment. Plus for the rest of the time, save existing
money.

Fixed Deposit: The deposit is available at the financial institution where the job is
completed. These are usually short-term with progress everywhere from one month
to several years.
Characteristics of bank loans from Bank Asia Limited,
The bank has a small interest rate, guaranteeing the interest rate of the
deposit
Interstate attractive rates
Flexible content
Up to 90% of lenders

Double Benefit

Benefits
Attractive and competitive rate
Double in just 6 years 6
months Up to 90% of lenders
Do not hide costs
The deposit starts with Tk. 50,000 or more
The minimum deposit in a domain name is Tk. 4,00,000
The lowest deposit under the name is Tk. 6,00,000

Terms & Condition

Only people can open this account

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 If there is a pre-existing problem, the simple interest rate on the savings
can be used as the term of the deposit over one year.
No interest before the year
Triple Benefit
Benefits
No hidden charge
Triple the amount in just 10 years
Attractive and competitive rate
90% of loan facilities
The deposit starts with Tk. 50,000 or more
The minimum deposit in a domain name is Tk. 4,00,000
The lowest deposit under the name is Tk. 6,00,000

Monthly Benefit

Benefits
Interesting and competitive rate
Monthly yield of up to 9000 taka per lac taka deposit
90% loan facilities
No hidden charge
Tenure Deposit: 3 and 5 years

All account opening Term and condition,

Only individuals can open this account

No interest before the year
If there is a pre-existing problem, the simple interest rate on the savings
can be used as the term of the deposit over one year.

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 3. Foreign Exchange Department

The main role of the Department of Foreign Affairs is to manage foreign remittance and
supplement foreign remittances; buying and selling of foreign currency, handling and
sending foreign documents and export and providing consulting service to exporters and carriers.
In addition, the office also provides financial assistance related to foreign trade, i. e, it provides
services to exporters through the receipt of funds for exports and shipments. by providing
financial assistance to remove ads or open loan applications. The department sends the letters
of credit to their foreign customers and gives the letters of credit received by the foreign couriers
to the consignors. Bank Asia Limited, Savar branch is not an authorized reseller (AD) branch,
therefore it is not authorized to buy and sell foreign currency. Thus, for Bank Asia branches that
are not AD members, all foreign exchange transactions are carried out by the Central Trade
Commission (CTSU). The Bangladesh Bank has granted CTSU the right to trade foreign
exchange. All letters of credit are processed by the branch, which is then sent to CTSU for money
transfer.
4. Credit Department

This is the bank’s survival room because until this room is received, survival is an issue for every
bank. If this section does not work well for the bank, you lose business. This is important
because this is the unit that earns the bank. Banks receive deposits from depositors as long as
they give them interest and keep their interest rates safe. Now the question will gradually arise
about how the bank will provide customer satisfaction and the simple answer is the loan and in
the first place. Lending is an ongoing process. The back of a card leads to another credit. In this
process of exchanging funds, the bank receives interest income. A bank can invest its money in
many ways. Bank loans and promotions for entrepreneurs, and manufacturers. In addition to
the status of credit can vary from security requirements, financial disclosures, statements
etc. etc. Businesses should keep in mind that lending is good for the community. And lending
should be done for manufacturing operations only.

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 5. Credit Product: Bank Asia Limited offers a wide range of loans for customers. Each
product is designed in different ways to meet customer needs. The facts about the products they
offer are

Auto Loan
House Loan
Personal loan
Loan for the holidays
Car loan
Loan for any purpose
Loan for small businesses
Money Gram
Assistance to the elderly
Durable consumer loan
Unsecured personal loan

Loan Feature

Loan Tk. 50,000.00 for Maximum Tk.5,00,000.00

Repay the rules for at least 1 year up to 4 years
Payment: Add once a month
Competitive interest rates
No early payment & partial repair fee
Earning a loan
Minimum age: Minimum 25 years, Maximum 57 years upon loan completion
Service lasts at least 2 years. At least 6 months with current office
Physicians or health
professionals Architects
Engineers
IT professionals
Management Consultants
No early payment & partial repair fee
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6. Categories of Loan and Advance

All loans and advancement groups are grouped into four categories for the purposes of
classification, the names of which are,

Demand loan
Fixed Term loan
Continuous loan
Short-Term Agriculture loan

Demand Loan

Loans that are repaid on demand by the bank. If a contract or liability has been relied upon
to enforce that money will be treated in accordance with the Loans. Such as enforcing
loans against foreign goods, paying against securities, foreign exchange purchases and
remittance bills.

Fixed Term Loan

Loans, which will be repaid in a special period within a repayment period. For example, he
borrows money, houses, money, etc.

Continuous Loan

Mortgages in any withdrawal will be subject to certain restrictions and have an expiration
date for all modifications. For example, withdrawal and overdraft.

Short-Term Agriculture Loan

This shall include short-term scores as described in the annual loan program provided by
the Bank of Bangladesh's Office for Agriculture and Financial Institutions (ACFID). A
repayable farm credit within 12 (12) months will also be included here. Short-term - The bank
will include a microcredit that exceeds the amount determined by the Bank's ACFID from time to
time and repays within 12 (twelve) months, if referred to in any name such as non-performing
loans, loans that self-employed, Textile credit or personal loans of the Bank.

7. Default Loan Classification

Regular loans if not repaid or repaid within the expiration date of the coffee for repayment
or after the request of the bank will be adjusted as overdue / overdue expires.
All loan applications if not repaid or repaid within the expiration date on or
after the request of the bank will be processed as expired / overdue expires.
Financial a repair or part of the default is due at the expiration date, the unpaid
amount will be adjusted as overdue / overdue from the next day expires.
Short-term upbringing and microcredit if not paid on the due date of repayment will
be deemed not to have elapsed / occurred six months after the due date of the honor.
All non-performing loans at a special rate beyond the Special Payment
System (SMA) will be adjusted according to the Standard.
Loans expected to be short-lived and micro-credit in the Special Loans
(SMA) and Sub-Standard will not be adjusted as mortgages.
Sub-standard if made or passed for three (three) months or more but less than 6
(six) months.
Uncertainty is that time has elapsed / expired for 6 (six) months or overdue but less than 9
(nine) months.
Sub-standard if there is still overdue / overdue payment for 3 (three) months or more but
not more than 6 (six) months from the expiration date or request from the bank.
Bad / Loss if it is overdue / overdue for 9 (nine) months or overdue due to expiration or
bank deposit.
If the down payment is equal to or greater than the payment amount over 3 (three) months,
the total loan amount will be subdivided into Sub-standard.
If the overdue amount is to be equal to or greater than the amount owed within 6
(six) months, all loans are classified as unsecured.
If the down payment is equal to or greater than the 9 (9) month down
payment, all loans will be classified as Negative / Loss.
 Chapter Four: Loan and Advance Statistics

1. Loan and Advance Statistics

All four categories of loans are integrated and divided into a wide range of industries
such as the mortgage industry, the mortgage industry & the real estate industry, mortgage
lending, automobiles, Transportation, consumer loans, public loans and private loans. This
information will give you an idea of how much money you need to borrow for each job and
how much you can earn each month.

2. Trades & Commerce

Trades & Commerce 1st July 2019 to 31st 1st October 2019 to 31st
September 2019 December 2019
Insufficient funds to spend in 326,278782 15,562,980
the
Quarter
Refunds are issued quarterly 120962500 163678895
Installment payment on time 320047560 92785680
Due SMA 840210 570880
Due Sub-Standard 100580 788900
Due Doubtful 3975700 971870
Due Bad/Loss 513240 6545390
 350000000
300000000
250000000
200000000
150000000
100000000 1st July 2019 to 31st
September
50000000
2019
0 1st October 2019 to 31st
December 2019

In the 31st quarter of December, 2019, the withdrawal within the month of the business
& industry growth was lower than the last quarter but the monthly return was increase further.
An increase in the return cause leads to a decrease in the lower standard due. It also
shows that the amount of dissatisfaction due to over time has decreased but the increase loss
due to over time indicates that most of the dissatisfaction due to / over time has shifted to
negative / lost due to / over time. Payments made on time can also be reduced which causes the
SMA to increase / overdue. This indicates that the new loans have entered the SMA over
payment period.

3. Construction
Construction 1st July 2019 to 31st 1st October 2019 to 31st
September 2019 December 2019
Disbursement Amount within 17786000 5000000
the Quarter
Recovery Amount within the 2153940 4911742
Quarter
Installment on time 65507880 67562710
Due/Over Due: SMA 20374660 3091520
Due/Over Due: Sub-standard 00000 17479330
Due/Over Due: Doubtful 00000 00000
Due/Over Due: Bad/Loss 00000 00000

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 140000000

120000000

100000000

80000000

60000000
40000000 1st October 2019 to 31st
December 2019
20000000
1st July 2019 to 31st
0 September 2019

In the 31st quarter of September, 2019, the quarterly withdrawal of construction fell less than the
previous month but the quarterly return on investment increased further. An increase in recovery
leads to a decrease in SMA due / over time. It also shows that the amount of the deferral / debt model
that had been made was zero in the last quarter, but now it shows that the new mortgage fell
into that category. It's nice to see that there are no doubts or wrong / due losses to over / over time
if available for this job on a monthly basis. The payback period has increased but all the
smaller ones, unlike the real estate & marketing companies.

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 4. Consumer Finance
Consumer Finance 1st July 2019 to 31st 1st October 2019 to 31st
September 201
Insufficient funds to spend 13809000
in the Quarter
Refunds are issued 564220
quarterly
Installment payment on 93034340
time
Due SMA 0000
Due Sub-Standard 0000
Due Doubtful 0000
Due Bad/Loss 19460

100000000
90000000
80000000
70000000
60000000
50000000
40000000
30000000
20000000 1st July 2019 to 31st
10000000 September
0 2019
1st October 2019 to 31st
December 2019

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In the 31st quarter of September, 2014, the withdrawal within the last month of the consumer
finance business was lower than the previous month and also recovered the money back in the third
quarter. Months have fallen. Payments for the period are still lost. All positive effects of these
actions were minimized by increase in SMA due to / over time. There was no SMA last quarter, but
now this month it's Tk. 1277600. Even though there were no small samples or complaints due to /
overdue this month and still bad / losses due to / overdue did not increase over the last quarter.

5. Total Loan and Advance Statistics for the Quarters

Total loan and advance for 1st July 2019 to 31st 1st October 2019 to 31st
the quarter September 2019 December 2019
Amount disbursed within 378789550 27146690
the quarter
Recovery amount within the 62451050 926280320
quarter
Installment on time 169610440 1256379600
Due/Over Due: SMA 16314810 4731390
Due/Over Due: Sub- 1470700 14043900

tful 4463350
oss 399530

1.4E+09

1.2E+09

1E+09

800000000

600000000
400000000
1st July 2019 to 31st
200000000
September 2019
0 1st October 2019 to 31st
December 2019
 In this quarter 31st September, 2019 loans within a month of loans and pre- depreciation. But
the quarterly returns were higher than in the previous three months. Term payments were
higher in the last month. An increase in repayments in the quarter shows that the bank is able to
repay the loan not only but as repayments over time have declined, new has entered the library.
Several of the SMA due / overtime were recovered but then rested to the next category. Such an
uncertainty due to over / over time has also been transferred to another category resulting in an
increase in both processes and a negative / loss due to / overdue over the past month.

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 Chapter Five: Financial Statement Analysis

1.Ratio Analysis

A ratio analysis is a statement of the balance sheet used to find information about a financial
institution performing well in a number of key areas. The reports are divided into short-term
reports, debt management reports, capital management reports, earnings reports and market
reports. Identifying relationships as a tool has many advantages. Financial information is always
available. Counting reports make it easy to compare companies from a variety of different
sources. Indices can be used to compare a company’s financial performance compared to its
business average. In addition, alerts can be used in the assessment process to identify areas where
performance is improving or affected over time.

2.Debt to Equity Ratio:

Equity to Debt is a financial statement that shows the relative percentage of equity and debt used
to fund a company's assets. A relationship that is closely related to leverage is also known as risk,
mechanism, or leverage.

Formula:

Debt to Equity Ratio= Total Liabilities/ Shareholder Equity

Year
Debt to Equity Ratio 2014 2015 2016 2017 2018

9.84 10.82 12.30 12.73 12.17

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 Debt to Total Asset

14

12

10

2
0
2014
2015
2016
2017
2018

Interpretation:

From this situation we can see that the sample started to increase after 2014. From 2015-2018 the
ratio was even higher although it was slightly lower than 12.17 in 2018. It shows that banks
are usually financed by lenders rather than from his finances. If the bank continue to run
with higher costs for equal costs so it will be harder for them to attract additional investment
loans.

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 3. Return on Assets (ROA)
Activity Return shows the percentage of profitability of a company's activities to generate
income. ROA can be calculated as follows: This number shows what a company can do with
what it has, or how many dollars of profit it makes from each dollar of the activity they control.

Formula:

Return on Assets (ROA)= Net Income/Total Assets

Year
Return on Assets (ROA) 2014 2015 2016 2017 2018

1.28% 1.26% 0.65% 0.76% 0.74%

Return on Assets (ROA)

2018
16% 2014
27%

2017
16%

2016 2015
14% 27%

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Interpretation:

From the figure above we can see that the return on activity has been on an rising trend from
2014 to 2015. In 2014 Bank Asia Ltd. acquired Tk. 1.28 for each taka invested. But in 2016, the
operating profitability drops sharply, as the profit after taxes in 2016 was lower than in 2014 and
2015, and the total assets were higher than in 2014 and 2015, so the operating profitability is
decreasing. In 2017, it increased again because profit after tax and total assets increased, but in
2018 fell slightly to 0.74% over the previous year.

4.Return on Equity (ROE)

Return on Equity (ROE) is a measure of profitability that measures the amount of income a
company receives from each member. This value is compared with the income of the owner's
stakeholders. The return on equity compares the level of income to the level of the equity holders
in the organization. The larger the comparison, the better. A higher level of this comparison
shows that society is capable of converting its assets into profit.

Formula:

Return on Equity (ROE)= Net Income/Total Equity

Year
Return on Equity (ROE) 2014 2015 2016 2017 2018

14.09% 14.36% 8.13% 10.21% 10.21%

 Return on Equity (ROE)

1021

14.09
14.36
8.13
2014
2015 10.21
2016
2017
2018

Interpretation:

The higher the percentage, the better for banks and property owners. But Bank Asia's rebalancing
shows that participants experienced an increase in profit margins during the first two years. On
the graph, we see the change in the return on equity of Bank Asia Ltd. In 2016, the bank
experienced a significant drop in its return on equity by 8.13%. But 2015 ROE is 14.6%, which is
higher than in all these years. It can be said that financial institutions in Asia were not careful in
managing their money with caution, which made them lose weight in 2016. Surprisingly, the
return on equity in 2017 and 2018 is the same. increased compared to 2016 and is a good symbol
for the bank.

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 5. Net Profit
Margin

The net profit margin is the percentage of revenue remaining after deducting all costs from
sales. The measurement reveals the amount of profit a company can make from total sales.
The net sales part of the equation is gross sales with all sales deductions, such as sales quotas.

Formula

Net Profit Margin= Net Profit after Tax/Revenue

years

Net Profit Margin 2014 2015 2016 2017 2018

10.88% 11.97% 7.28% 8.98% 8.35%

Net Profit Margin

11.97
10.88

8.98
7.28 8.35

2014
2015
2016
2017
2018

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 Interpretation:

Bank Asia's easy-to-earn interest margins are positive and rising this year. From 2014 to
2015 earnings rose sharply due to good management, low cost design and high value-added
strategies. In 2016 it dropped to 7.28. It increased slightly in 2017, but again dropped
slightly to 8.35% in 2018, showing that they cannot all convert it into revenue.

6. Earnings per Share

Earnings per share (EPS) is calculated as the company's earnings divided by the number of
ordinary shares outstanding. The resulting number serves as an indicator of the company's
profitability. A company that reports earnings per share is usually adequate for emergencies and
potential dilutions of shares. The higher the earnings per share of a company, the more profitable
it will be considered..

Formula:
Earnings per Share= Net Income/Number of share outstanding

Year

Earnings per Share 2014 2015 2016 2017 2018

2.64% 2.92% 1.57% 1.84% 2.04%

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 Earnings per Share

2.92

2.64

2.04
1.84

1.57

2014 2015 2016 2017 2018

Interpretation:

Partially higher earnings always better than lower profits, as this indicates that the company is
more profitable and the company can distribute profits to its shareholders. to join you. As you can
see from the above figure, Bank Asia's profit share in 2015 was higher, which shows that the
bank is performing better compared to other years. In 2016, the bank achieved the lowest profit
of 1.57, which indicates that in 2016 the bank's capital income was low compared to the amount
of income. Or it lowers the income per share. But earnings per share in 2018 increased by 2.04%
due to an increase in net income and the number of unbalanced expenses on the balance sheet..

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 7. Cost of Deposits (COD)

Cost of Deposits refers to the interest paid by banks on funds collected by the
government for loans or financial purposes.

Formula:
Cost of Deposits=Interest Expense/ Average Deposit

Year

Cost of Deposits 2014 2015 2016 2017 2018

7.80% 7.20% 5.90% 5.40% 6.10%

Cost of Deposits

2018 2014
19% 24%

2017
17%
2015
2
2016
18%

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 Interpretation:
From the figure above we can see that there is a gradual decline from 2014 to 2017 in payments.
It has been reduced because the loan interest rate is not comparable to the total amount of money
at the bank. But in 2018 The deposit fees increased by 6.10% over the previous year due to
higher debt.
8. Loan Deposit Ratio
Loans to deposits ratio is the ratio between the total amount of bank loans and the total amount of
deposits. The ratio is usually expressed as a percentage. If the ratio is below one, the bank relied
on its own deposits to lend to its clients without external borrowing.

Formula:
Loan Deposit Ratio= Total Loan / Total Deposit
Year

Loan Deposit Ratio 2014 2015 2016 2017 2018

77.87% 78.50% 80.15% 81.88% 96.47%

Loan Deposit Ratio

96.47

78.5 80.15 81.88

77.87

Column2
Colu n1 Series 1

2014 2015 2016 2017 2018

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 Interpretation:

From the figure above we can see that there is a gradual change in the loan ratio. In 2014 the
bank lending rate was 77.87%. After 2014 it started to increase in every year. Mortgage lending
increased from 2014 to 2018 due to the financing and additional deposits before the year.
The slowdown indicates that the bank is generating more interest rates which leads to higher
revenues.

9. Loan to Asset Ratio

Loans for assets are likely to be measured as the total loan portfolio as part of the total assets.
The higher the ratio, the higher the liquid of the company. Higher comparisons are risky
enough for companies to generate fraud more quickly.

Formula:

Loan to Asset Ratio= Total Loan & Advance/Total Asset

Year

Loan to Asset Ratio 2014 2015 2016 2017 2018

63.90% 60.80% 64.60% 68.30% 69.80%

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 Loan to Asset Ratio

2018 2014
21% 19%

2015
2017 19%
21%

2016
20%

Interpretation:

From the above data we can see that in 2014, mortgage lending was 63.90%, but decreased to
60.80% in 2015, then began to increase. This increase indicates that the bank has borrowed
more compared to% of its assets. It can be risky for the bank, as granting larger loans can
lead to liability and ease.

10. Price Earnings Ratio

The ratio we have to earn, also known as P / E, or PER ratio is reported in relation to the
accompanying enterprises and the joint gain with the companies. The report is used to assess
the attendees and to find out if they are overestimated or undervalued.

Formula:

Price Earnings Ratio=Market Value Per Share/Earning Per Share

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 Year

Price Earnings Ratio 2014 2015 2016 2017 2018

5.74 5.65 11.40 11.14 8.68

Time Time Time Time Time

Price Earnings Ratio

11.4
11.14

8.68
5.74
5.65

2014
2015
2016
2017
2018

Interpretation:

From the above figure we can see that the P / E ratio is usually in 2016, which is 11.40 times and
the lowest in 2015, which is 5.65 times. In 2016 and 2017 there was a growing trend, which
shows that the future is going well, and investors are really looking for more money in the
banking sector. In 2018, the market price per share fell and fell to 8.68 times, which is not
a good sign for the bank. This insufficient percentage leads to a higher distribution
compared to the previous year.

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11. Burden Ratio

It is usually reported as the difference between expense with expenses and uninteresting
income from assets. If the comparison is a bad number, it would be better for the company,
because the negative indicator is that the company deserves to pay its revenue costs.
Formula:
Burden Ratio=Operating Expense –Non Interest Income/Average Total Asset

Year
Burden Ratio 2014 2015 2016 2017 2018

0.52% 0.21% 0.40% 0.43% 0.70%

Burden Ratio

2014
2018 23%
31%

2015
9%

2017 2016
19% 18%
Interpretation:

The lower rating indicates that the company is able to manage its costs efficiently. From the
above figure we can see that the share of the measure was 0.52% in 2014, which is less than
0.21%. However, by 2016, it had started to grow further and in 2018 it was 0.70%. This increase
indicates that operating costs were always higher than non-performing revenues. Although
unpaid income increased in 2018, it is not good enough to cover labor costs that put people in a
heavier burden.
 Chapter Six: Conclusion

Finding:

I have received some important findings regarding the performance of Bank Asia
Ltd. When making this report the findings are given below,

Return on assets was the best in 2015, was lower in 2016 and continued to grow in 2017.
But in 2018 it fell slightly to 0.74%, which shows that the company's income for
managing its capital was lower than last year..
Over the past few years the debt to the lenders was on the rise but it decreased
slightly in 2018. This higher figure indicates that the bank has received more of
external borrowers over their own equal partners.
The cost of deposits compared to the banks in 2014 and 2015 was higher due to higher
interest rates. It then came down to good performance in 2016 and 2017. But the bank
could not hold the key that led to the increase in COD in 2018 because of the high interest
rates.
Mortgage lending is on the rise and it shows that the bank is getting more loans compared
to% of its assets. It can be risky for the bank because giving higher loans can lead to
liability and ease of mind.
In 2018, the stock price fell and it dropped to 8.68 times which is not a good sign for the
bank. This insufficient percentage leads to a lower distribution compared to last year
which was 10% in 2018 compared to 12.5% in 2017.
The bank's load ratio is 0.70% in 2018, which is higher than last year, and this shows that
operating expenses were very good compared to the interest rate that made the bank
insufficient cover your luggage.

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 Recommendation:

Bank Asia needs to manage its capital in order to increase their revenue through
efficient use of revenue.
Bank Asia Ltd. have to rely on their own different investors to finance their assets to reduce
the cost of equity.
Banks need to be more prepared for managing their debts to reduce their deposit
costs. They should follow the management of their expansion
Bank Asia needs to be careful about lending to customers. They are careful to reduce the
risk of mortgages which will ultimately reduce their responsibilities as well as
make the mind easier.
Banks should rely on their earnings to be unsatisfied with operating expenses
that will reduce the burden.
Bank Asia Ltd. Need to find more capable staff & experience to manage money to
achieve a good financial plan.
Bank Asia Ltd. should be committed to overseeing the marketing strategy to reach
customers.
Bank Asia Ltd. should collect customer error notes that will help identify the importance
of consumer business.

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 Conclusion:

As the third largest bank, Bank Asia is committed to providing high-quality services /
financial services to support the country's GDP growth by boosting economic and social
development. , to boost business, promote exports, create jobs for youth education, reduce
poverty, raise middle class & low achievers and overall improvement health of the country.

Currently Bank Asia makes a strong presence through its various "operations. Its number of
applicants, the amount of deposits and the value of investments increase every day. The bank is
already committed to investing in the investment process. Customers are more or less satisfied
with the current services of the bank and to satisfy its customers. More money Bank Asia thinks
about new products and good services with good deals. In 2018, the bank achieved a real
financial performance result that is very commendable. .
In other words, Bank Asia Ltd. can be said to have grown rapidly and become a leader in
Bangladesh. Your involvement with us in the sector is still incredible. I hope Bank Asia Ltd.
continues to show future success through the use of innovative ideas and new development
tools.

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 Websites

1) https://www.google.com/search?
q=loan+and+advance&rlz=1C1CHBF_enBD915BD915&oq=loan+and+advance+&aqs
=chrome..69i57j69i59l3j0j69i60j69i61j69i60.12982j0j7&sourceid=chrome&ie=UTF-8
2) https://bankerguide.wordpress.com/loans-and-advance/
3) http://supplychainfinanceforum.org/techniques/loan-or-advance-against-receivables/
4) https://www.academia.edu/40542807/INTERNSHIP_REPORT_ON_LOANS_and_AD
VANCE_MANAGEMENT_OF_NATIONAL_BANK_Submitted_To_Submitted_By
5) https://www.academia.edu/36089172/Internship_Report_On_Loan_and_Advance_Man
agement_Procedure_Of_BASIC_Bank_Limited
6) http://dspace.daffodilvarsity.edu.bd:8080/bitstream/handle/20.500.11948/937/General
%20Banking%2C%20Loans%20and%20Advances.pdf?sequence=1&isAllowed=y

Others

Bank Asia Limited annual report 2014-2018

Study documents and notes provided by Bank Asia Limited and the Branch
Branch profit and loss account 2014-2018
Circulars issued by Bank Asia Limited from time to time

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