An Analysis of The Financial Statement Between Jamuna Bank

An Analysis of the Financial Statement between
Jamuna Bank Ltd. & Southeast Bank Ltd.
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“© Stamford University”
An Analysis of the Financial Statement between
Jamuna Bank Ltd. & Southeast Bank Ltd.
Prepared For
Rima Parvin
Assistant Professor
Department of Business Administration
Faculty of Business Studies
Stamford University
Prepared by
Mst. Sharmin Afroz
ID No: MBA066-17750
Major: Finance
Program: MBA
Faculty of Business Studies
Stamford University
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LETTER OF TRANSMITAL
17th April, 2020
Rima Parvin
Assistant Professor
Business Administration
Stamford University
Subject: Submission of Internship Report.
Dear Sir,
It gives me enormous pleasure to submit my internship report that I have completed as Part of fulfilling the
requirement for the Internship course from Masters of Business Administration, Stamford University. I
have completed my internship program from Jamuna Bank Limited and I have tried my best to make an
effective and credible Internship Report. The report contains a comprehensive study on “Financial
Statement Between Jamuna Bank Ltd. & Southeast Bank Ltd.”. This report is the result of the Internship
Program that I have conducted in Jamuna Bank limited Branch. I have put my best effort in preparing this
report and to make it a valuable one. It was a helpful experience and an opportunity for me to have worked
in such an organization. It was a great delightsome to have the opportunity to work on the above-mentioned.
It has also to be mentioned that without your expert advice and cooperation it would not have been possible
to complete this report. I will be grateful to you if you accept the report.
Thank You.
Sincerely yours,
Mst. Sharmin Afroz
ID: MBA066-17750
Major: Finance
Masters of Business Administration (MBA)
Stamford University Bangladesh
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Certificate of Approval
This is to certify that the Internship Report on “An Analysis of the Financial Statement between
Jamuna Bank & Southeast Bank “prepared by Mst. Sharmin Afroz, a student of Masters of Business
Administration (Major in Finance & Accounting), is recommended for submission and presentation.
Mst. Sharmin Afroz bears a good moral character and a very pleasing personality. It has indeed been a great
pleasure working with him. I wish him all success in life.
-------------------------------
Rima Parvin
Assistant Professor
Business Administration
Stamford University
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STUDENT’S DECLEARATION
I hereby declare that the report of internship namely “An Analysis of the Financial Statement
between Jamuna Bank & Southeast Bank Ltd.’’ is prepared by me after the completing of 3
(three) months of internship with Jamuna Bank. Ltd. a comprehensive study of the existing
activities between Jamuna Bank & Southeast Bank Ltd. and its implementation. Submitted by me
to Stamford University, for the degree of Masters of Business Administration, I also declare that
this paper is my original worked and prepared for academic purpose which is a part of MBA and
the paper may not be used in actual market scenario.
Mst. Sharmin Afroz

ID: MBA066-17750
Major in Finance
MBA Program
Stamford University
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Executive Summary
This report prepared on the basis of practical experiences of Jamuna Bank Ltd & Southeast Bank
Ltd. The internship programs help me a lot to learn about the practical situation of financial. This
program helps me to implement my theoretical knowledge into practical realistic environment. In
the age of modern civilization Bank is plying its spending role to keep the economic activity. In
fact, there is hardly any aspect of development activity whether state inspired or otherwise where
Bank do not have a major role to play.
Financial analysis is important trend to evaluate any bank’s performance. On my report I had to
study JBL’s & SEBL’s financial statements and give significant feedback regarding to changes the
financial position. In my MBA program, I have spent 3 months in JBL, pragoti saroni branch and
learning the activities of general banking, general advance and foreign exchange department. I
have analyzed the financial statement to find out JBL’s ratios by using past and current records.
After ratio analysis I come to know that ratio helps to overcome the past flows and help to take
future decision. So, it’s very necessary for every organization.
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Table of Contents
Serial No. Contents Page

CHAPTER-1 02
Introduction
1.1 Introduction 03,04
1.2 Origin of the Report 04
1.3 Objective of the Report 05
1.4 Methodology 05,06
1.5 Scope of the Report 06
1.6 Limitations of the study 06,07
CHAPTER-2 08
Organizational Overview
2.1 Organizational Overview 09
2.2 JBL (Mission, Vision, Objective) 09
2.3 Values 10
2.4 Corporate Slogan 11
2.5 Organizational Structure 12
2.6` Strategic Marketing Plan 13
2.7 Corporate Culture of JBL 13-14
2.8 Service & Product of JBL 14-16
2.9 SWOT Analysis 17-19
2.10 Historical Background 20
2.11 Operational Areas 20-21
2.12 Customer Commitments 21
2.13 SEBL,s Vision 21-23
2.14 SEBL,s Corporate Slogan 23
2.15 SEBL Organizational Structure 24
2.16 SWOT Analysis of SEBL 25
CHAPTER-3 26
Analysis
3.1 Performance Analysis of JBL 27
3.2 Current Ratio 28
3.3 Capital Ratio 29-30
3.4 Total Depth to total Asset Ratio 30-31
3.5 Profitability Ratio 31-32
3.6 Net Operating Margin 32-33
3.7 Return on Equity 33
3.8 Return on Asset 34
3.9 Return on Deposit 34-35
3.10 Tax Management Ratio 35-36
3.11 Expense Control Efficiency 37
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3.12 Degree of Asset Utilization 38
3.13 Operating Efficiency 39-40
3.14 Capital Adequacy Ratio 40-41
3.15 Loans to Total Deposit 41-42
3.16 Loans to Asset Ratio 42
3.17 Equity Multiplier 43
Performance Observation of SEBL
3.18 Growth in Different Business of SEBL 44
3.19 Growth in Assets 44
3.20 Growth in Deposits 44
3.21 Growth in Loans and Advances 45
3.22 Growth in Net Profit 45
3.23 Return on Assets 45-46
3.24 Return on Equity 46-47
3.25 Financial Statement Analysis 47-48
3.26 Users of Financial Statement Analysis 48
3.27 Ratio Analysis of SEBL 48
3.28 Important of Financial Ratio 48
3.29 Bank Profitability Ratio 49
3.29.1 Return on Asset 49
3.29.2 Return on Equity 49-50
3.29.3 Return on Deposit 50
3.29.4 Return on Shareholder Capital 50-51
3.29.5 Bank Efficiency Ratio 51
3.29.6 Assets Quality Indicators 51-52
3.29.7 Loan Ratio 52-53
3.29.8 Equity Multiplier 53
3.29.9 Equity to Deposit 53-54
3.29.10 Total Liabilities to Shareholders Capital 54
3.30 Findings of Financial ratio Analysis
CHAPTER-4 56
Findings, Recommendations, Conclusion
4.1 Findings 57
4.2 Recommendations 58
4.3 Conclusion 59
4.4 Reference 60
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Chapter-1
Introductory Part
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1.1 Introduction
Generally, by the word ―Bank we can easily understand that the financial institution deals with
money. But there are different types of banks like; Central Banks, Commercial Banks, Savings
Banks, Investment Banks, Industrial Banks, Cooperative Banks etc. But when use the term―Bank
without any prefix, or qualification it refers to the Commercial banks. 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 & saving
account and then uses these funds to make loans. As banks are profit earning concern; they collect
deposit at the lowest possible cost and provide loans and advanced at a higher cost. The differences
between two are the profit for the bank. As the demand for better service increases day by day,
they are coming with different innovative ideas and products. In order to survive in the competitive
field of the banking sector, all banking organization are looking for better service opportunity to
provide their fellow clients. As a result, it has become essential for every person to have some idea
on the bank and banking procedure. Jamuna Bank Limited & Southeast Bank came out in reality
through the initiatives of some dynamic people, who were from different sectors of commerce,
trade and industries. Jamuna Bank was registered in 2001 as a commercial bank under the
Companies Act, 1994 & Southeast Bank was established in 1995. Jamuna bank started its banking
activities on 03 June, 2001. JBL from the very inception set a mission to build up itself as a unique
commercial bank through difference in outlook, and providing comprehensive and innovative
services to the valued customers. And ultimate goal is attaining mutually a sustainable higher level
in financial treasury services and SWIFT for foreign trade. The bank has made a significant
progress within a very short period of its existence and occupied an enviable position among its
competitors after achieving remarkable success in all areas of business operation this bank has 112
branches all over the Bangladesh. As a new generation private commercial bank of the country,
JBL provides all conventional services to the clients. In addition, it presents a good number of
schemes and products in deposit and credit forms. Such as cash management service, payments
and clearings safe deposit locker services, employee benefits.
Jamuna Bank Limited provides commercial banking services. The Bank's other activities include
provision of Islamic banking services to its customers through Islamic Banking branches. The
Bank's business segment includes Conventional and Islamic. The Bank offers corporate banking
solutions, which consist of project finance, including financing of capital machinery for both new
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project and expansion of existing project; working capital finance, including working capital
modes, such as time loan and cash credit (hypothecation); offers for importers, including loan
against trust receipt and time loan, and offers for exporters,
including over draft and packing credit. It offers contractors and suppliers with various supports,
including bid bond, overdraft, and performance guarantee and security bond. Jamuna Bank Capital
Management Limited and Jamuna Bank Securities Limited are its subsidiaries.
And another part is Southeast Bank Limited was established as a Public Limited Company on
March 12, 1995. In the Registrar of Joint Stock Companies and Firms issued the Certificate of
Commencement of Business of the Bank on the same date. The Southeast Bank received its
Banking License from the Bangladesh Bank on March 23, 1995. The Bank's first branch was
opened by M. Saifur Rahman, the then Finance Minister of Bangladesh as the Chief Guest at 1,
Dilkusha Commercial Area, Dhaka on May 25, 1995. The incumbent Chairman of the Bank is
Alamgir Kabir, FCA. M. A. Kashem a member of the Board and Yussuf Abdullah Harun were
past Presidents of the Federation of Bangladesh Chamber of Commerce and Industries.
1.2 Origin of the Report

Internship program is designed for the student of Masters of Business Administration Program
(MBA) of Stamford University on completing the course to acquire experience on the practical
application with the theoretical knowledge. This report was done during my internship period in
Jamuna Bank Ltd. to fulfill the requirement of the course under the supervision of Rima Parvin
the topic was selected with able guidance of the supervisor.
The Topic of the report is “Financial Statement Between Jamuna Bank LTD & Southeast Bank
Ltd.”. Financial Statement is a structural and logical way to present overall financial performance
of financial institution. It is also help to evaluate and decision making for business operation.
Business stakeholders try to concentrate to get overall business overview from profitability,
liquidity, assets management and solvency ratio analysis.
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1.3 Objectives of the Report
To find out the statement of financial position.
To find out statement of profit or loss and other comprehensive income
To find out separate statements of profit or loss (where presented)
To find out statement of cash flows
To find out statement of changes in equity
To find out related notes for each of the above items.
1.4 Methodology
1.4.1 Research Design
The report is descriptive in nature. To prepare this report gathering data is very important. The
information was collected from both primary and secondary sources of data. The information was
collected within the organization from the Corporate Division of Jamuna Bank Limited.
1.4.2 Data Collection Method:
This report is prepared based on information collected from two sources i.e. Primary sources and
Secondary sources.
1.4.2.1 Sources of Data
Primary data
1. Face to face conversation with the respective officers and clients.
2. Practical work experience from different department of the concerned officers.
3. Collect ratios from Audit department through personal interview.
4. Guidelines and suggestions from all the senior employees in charge of Jamuna Bank Ltd.
Secondary data
➢ Annual Reports of Jamuna Bank Limited.
➢ Online data from JBL website.
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➢ Working papers
➢ Office files
➢ Several articles related on financial analysis
➢ Selected Books
1.4.3 Data Analysis Method:
Qualitative and Quantitative each research is conducted to analysis the primary and secondary
data. The data are presented in this report by using the Microsoft Word and Microsoft Excel.
1.5 Scope of the Report
The scope of the study is to have an idea about Financial Statement between Jamuna Bank &
Southeast Bank Ltd. The report starts with the outline of the organization in focus, presenting the
mission and vision of organization. It accompanied by the global perspective and look into the
future. The researcher provides information about the strengths, weakness, opportunities and
threats of the organization. Those who looking for the information about Financial Statement
between Jamuna Bank & Southeast Bank Ltd they might get help from this report. The study
explores the present market scenario of Jamuna Bank & Southeast Bank Ltd. and future market
growth prospects in Bangladesh.
1.6 Limitations of the study
Legal obligation
Due to some legal obligation and business secrecy the bank was reluctant to provide some sensitive
data. Thus, this study limits only on the available published data and certain degree of formal and
informal interview and limited survey.
Extensive Nature
Although the particular study is extensive in nature, hard effort was given to make the study
worthwhile and meaningful even then there exists some limitation.
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Lack of time
The researcher was in the bank for three months so within this short span of time it is very difficult
to be familiar with all the activities of the bank
Lack of Supervision by the bank officers
As the officers were busy with their daily working activities, they were not able to give me much
time apart from their daily working activities.
Restricted Information
There were various types of information’s that the bank officers cannot disclose due to the security
and other corporate obligations.
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Chapter-2
Organizational Overview
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Organizational Overview of Jamuna Bank Ltd.
2.1 Organizational Overview:
Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 of
Bangladesh with its Head Office currently at China Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000,
and Bangladesh. The Bank started its operation from 3rd June 2001. JBL undertakes all type of
banking transactions to support the development of trade and commerce in the country. JBL‟s
services are also available for the entrepreneurs to set up new ventures and BMRE for industrial
units. The Bank gives special emphasis on Export, Import, Trade Finance, SME Finance, Retail
Credit and Finance to Women Entrepreneurs. At present the Bank has real-time Online banking
branches (of both Urban and Rural areas) network throughout the country having smart IT-
backbone. Besides traditional delivery points, the bank has ATMs of its own, sharing with other
partner banks and consortium throughout the country. The operation hour of the Bank is 10:00
A.M. To 6:00 P.M. from Sunday to Thursday with transaction hour from 10:00 A.M. to 4:00 P.M.
The Bank remains closed on Friday, Saturday and government holidays. To provide clientele
services in respect of International Trade it has established wide correspondent banking
relationship with local and foreign banks covering major trade and financial center at home and
abroad.
2.2. JBL (Vision, Mission and Objectives)
• Vision
Jamuna bank wants to become a leading banking institution and to play a significant role in the
development of the country.
• Mission
The Bank is committed for satisfying diverse needs of its customers through an array of products
at a competitive price by using appropriate technology and providing timely service so that a
sustainable growth, reasonable return and contribution to the development of the country can be
ensured with a motivated and professional work-force.
• Objectives
➢ To earn and maintain CAMEL Rating 'Strong.'
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➢ To establish relationship banking and improve service quality through development of
Strategic Marketing Plans.
➢ To remain one of the best banks in Bangladesh in terms of profitability and assets quality.
➢ To introduce fully automated systems through integration of information technology.
➢ To ensure an adequate rate of return on investment.
➢ To keep risk position at an acceptable range (including any off-balance sheet risk).
➢ To maintain adequate control systems and transparency in procedures.
➢ To develop and retain a quality work force through an effective human Resources
Management System.
➢ To ensure optimum utilization of all available resources.
➢ To pursue an effective system of management by.
2.3 Values:
➢ Place customer interest and satisfaction as first priority and provide customized banking
products and services.
➢ Value addition to the stakeholders through attaining excellence in banking operation.
➢ Contribute significantly for the betterment of society.
➢ Ensure higher degree of motivation and dignified working environment for our human capital
and respect optimal work life balance.
➢ Committed to protect the environment and go green.
➢ Employees of JBL share certain common values, which helps to create a JBL culture.
➢ The client comes first.
➢ Search for professional excellence.
➢ Quick decision –making.
➢ Flexibility and prompt response.
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Integrit
y
Core
Values
Team
Work
Fig 1: Values of Jamuna Bank Limited.
2.4 Corporate Slogan

“Your Partner for growth”
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2.5 Organization structure:
The Jamuna Bank Limited has demonstrated and definite management structure like all other banks. The
typically hierarchical arrangement of lines of authority, communications,
rights and duties of an organization. Organizational structure determines
how the roles, power and responsibilities are assigned, controlled, and
coordinated, and how information flows between the different levels of
management.
The Management structure of Jamuna Bank Limited is given below with

the chart: -
Ismail Hossain Siraji, Chairman
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2.6 Strategic Marketing Plans:
Remain one of the best banks in Bangladesh in terms of profitability and assets quality.
Introduce fully automated systems through integration of information technology.
Ensure an adequate rate of return on investment.
 Keep risk position at an acceptable range (including any off-balance sheet risk).
 Maintain adequate liquidity to meet maturing obligations and commitments.
 Maintain a healthy growth of business with desired image.
 Maintain adequate control systems and transparency in procedure.
Develop and retain a quality work-force through an effective human Resources Management
System.
Ensure optimum utilization of all available resources.
Pursue an effective system of management by ensuring compliance to ethical norms, transparency

and accountability at all levels.
Strategies:
To manage and corporate the Bank in the most efficient manner to enhance financial performance
and control cost of fund.
To strive for General banking activities through quality control and delivery of timely services.
To identify customers‟ credit and other banking needs and monitor their perception towards our
performance in meeting those requirements.
To review and update policies, procedures and practices to enhance the ability to extend better
services to customers.
To train and develop all employees and provide them adequate resources so that customers „can be
reasonably addressed.
To promote organizational effectiveness by openly communicating company plans, policies,
practices and procedures to employees in a timely fashion.
To cultivate a working environment that fosters positive motivation for improved performance.
To diversify portfolio both in the retail and wholesale market.
To increase direct contact with customers in order to cultivate a closer relationship between the bank
and its customers.
2.7 Corporate Culture of JBL
Employees of JBL share certain common values, which help to create a JBL culture,
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➢ The client comes first.
➢ Search for professional excellence.
➢ Openness of new ideas and new methods to encourage creativity.
➢ Flexibility and promote response.
➢ A sense of professional ethics.
2.8 Service & Product of JBL:
The Bank has an array of tailor-made financial products and services. Such, products are Monthly
Savings Schemes, Consumer Credit Scheme, Lease Finance, and Personal Loan for Women, and Shop
Finance Scheme etc. JBL also introduced Q -cash ATM cards for its valued customers giving 24 hours
banking services through Debit Cards. JBL offers the following services to its valued customer-
(a) Deposit Schemes
(b) Remittance and Collection
(c) Import and Export handling and finance
(d) Loan syndication
(e) Project finance
(f) Investment Banking
(g) Lease Finance
(h) Hire Purchase
(i) Personal Loan for Woman
(j) 24-hours banking: Q-Cash ATM facility
(k) Islamic Banking
(l) Corporate Banking
(m) Consumer Credit Scheme
(n) International Banking.
Corporate Banking
Jamuna Bank Ltd. offers a complete range of advisory, financing and operational services to its
corporate client groups combining trade, treasury, investment and transactional banking activities in
one package. The corporate Banking specialists will render high class service for speedy approvals and
efficient processing to satisfy customer needs. Corporate Banking business envelops a broad range of
businesses and industries. You can leverage on the knowhow in the following sectors mainly –
➢ Agro processing industry
➢ Industry (Import Substitute / Export oriented)
➢ Textile Spinning, Dyeing / Printing
➢ Export Oriented Garments, Sweater.
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➢ Food & Allied
➢ Paper & Paper Products
➢ Engineering, Steel Mills
➢ Chemical and chemical products etc.
➢ Telecommunications.
➢ Information Technology
➢ Real Estate & Construction ·
➢ Wholesale trade
➢ Transport · Hotels, Restaurants ·
➢ Non-Bank Financial Institutions
➢ Loan Syndication ·
➢ Project Finance
Other highly customized services of JBL
Q-Cash Round
The Clock Banking Jamuna Bank Q-Cash ATM Card enables you to withdraw cash and do a variety of
banking transactions 24 hours a day. Q-Cash ATMs are conveniently located covering major shopping
centers, business and residential areas in Dhaka and Chittagong. ATMs in Sylhet, Khulna and other cities
will soon start be introduced. The network will expand to cover the whole country within a short span of
time. With Jamuna Bank Q-Cash ATM card customer can:
➢ Cash withdrawal Round the Clock from any Q-Cash logo marked ATM Booths.
➢ POS transaction (shopping malls, restaurants, jewelries etc.).
➢ Enjoy overdraft facilities on the card (if approved)
➢ Utility Bill Payment facilities
➢ Cash transaction facilities for selective branches nationwide Jamuna Bank Limited has installed its
first
Q-cash ATM at Dhanmondi Branch, Dhaka and Jamuna Bank is starting to issue VISA card. In line with
the issuance of Q-cash products JBL is starting to introduce VISA card. Online Banking Jamuna Bank
Limited has introduced real-time any branch banking on December 31, 2010. Now, customers can withdraw
and deposit money from any of its 65 branches located at Dhaka, Chittagong, Sylhet, Gazipur, Bogra,
Naogoan, Narayanganj, Dinajpur, Kushtia, Rajshahi, Bashurhat, Sirajganj and Munshigonj. The valued
customers can also enjoy 24 hours banking service through ATM card from any of Q-cash ATMs located
at Dhaka, Chittagong, Khulna, Sylhet and Bogra. All the existing customers of Jamuna Bank Limited will
enjoy this service by default. Key features:
➢ Centralized Database
➢ Platform Independent
➢ Real time any branch banking
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➢ Internet Banking Interface
➢ ATM Interface
➢ Corporate MIS facility 16 Delivery Channels:
➢ Branch Network
➢ ATM Network
➢ POS (Point of Sale) Network
➢ Internet Banking Network Retail Banking
A commercial bank consists of a few departments, which perform diverse operations, General Banking
Division, Foreign Exchange and Credit Division. General Banking is important one. General Banking is
the heart of total banking system. Through this section bank has to receive and disburse money, to develop
banker customer relationship by opening different types of account and providing promote services to the
customers. This department collects money from the depositor and uses these deposits to earn profit. Last
but not least, General Banking department is considered to be the core function of bank which operates the
day to day transactions. The foreign exchange division deals with the inflow and outflow of foreign
currencies in the bank. Again, the credit section deals with the loan and others facilities. The department is
very rush and the employee here are too upgrade too their duty. They pass entry of every transaction within
the day. It opens new accounts, remit funds, issue bank draft and pay order, etc. Since Bank is confined to
provide these services every day, general banking is known as „Retail Banking‟.
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2.9 SWOT Analysis
2.9.1 STRENGTHS
➢ JBL is newly commercial bank in banking sector but they build strong reputation in short
time.
➢ They provide extra ordinary service to their customer for gaining the customer value to
their product.
➢ Strong network throughout the country and provide quality of service to every level of
customer.
➢ JBL has been founded by a group of prominent entrepreneurs of the country.
➢ Jamuna Bank ltd has an interactive corporate culture. The working environment is very
friendly, interactive and informal. And there are no hidden barriers or boundaries while
communicate between the superior and the employees.
➢ This corporate culture provides as a great motivation factor among the employees.
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➢ Jamuna Bank ltd has the reputation of being the provider of good quality service to its,
potential customers.
2.9.2 WEAKNESSES
The main important thing is that the Bank has no clear mission statement and strategic plan. The
Banks not have any long-term strategies of whether it wants to focus on retail.
Banking or become a corporate Bank. The path of the future should be determined now with a
strong feasible strategic plan.
Higher service charge in some areas of banking operation than that of nationalized banks
discourages customers from opening or maintaining accounts with this bank.
There is a very little practice for increasing motivation in the workers by the management.
Small market share.
They have a limited branch network over the country.
In terms of promotional sector, Jamuna Bank ltd has to more emphasize on that. They have to
follow aggressive marketing campaign.
Some of the job in Jamuna Bank ltd has no growth or advancement path. So lack of motivation
exists in persons filling those positions. This is a weakness of Jamuna Bank Ltd that it is having a
group of unsatisfied employees.
2.9.3 OPPORTUNITIES
 JBL can pursue diversification strategy in expanding its current line of business. The
management can consider options for starting merchant banking or diversity in to leasing and
insurance. By expanding business portfolio, JBL can shrink business risk.
Opportunity in retail banking lies in the fact that the country’s increased population is gradually
learning to adopt consumer finance. The bulk of our population is middle class.
Different types of retail lending products have great appeal to this class. So a wide variety of
retail lending products has a very large and easily pregnable market.
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2.9.4 THREATS
Default culture is very much familiar in our country. For a bank, it is very harmful.
As JBL is new, it has not faced it seriously yet. However, as the bank grows older it might
become a big problem.
The Central Bank exercises strict control over all banking activities in local banks like JBL.
Sometimes the restriction impose barrier in the normal operations and policies of the bank.
Rival bank easily copy the product offering of JBL. Therefore, the bank is in continuous of
product innovation to gain temporary advantage over its Competitors.
Some contemporary, multinational and upcoming banks are competitors of JBL. These Bank
poses threat for JBL. So JBL Should takes necessary steps to compete with them in the current
market. Frequent rate devaluation and foreign exchange rate fluctuation is causing problem.
Government is imposing newer and harder rules and regulations.
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Organizational Overview of Southeast Bank Ltd.
2.10 HISTORICAL BACKGROUND
Southeast Bank Limited is a scheduled Bank under private sector established under the
ambit of bank Company Act, 1991 and Incorporated as a Public Limited Company under
Companies Act, 1994 on March 12, 1995. The Bank started commercial banking operations
effective from May 25, 1995 during this short span of rime the Bank had been successful
to position itself as a progressive and dynamic financial institution in the country. The Bank
had been widely acclaimed by the business community, from small entrepreneur or large
traders and industrial conglomerates, including the top rated corporate borrowers for
forward-looking business outlook and innovative financing solutions Thus within this very
short period of time it has been able to create an image for itself and has earned significant
reputation in the country’s banking sector as a Bank with vision. Presently it has thirty-
four branches in operation.
The emergence of Southeast Bank Limited at the junction of liberation of global economic
activities, after the URUGUAY ROUND has been an important event in the financial
sector of Bangladesh. The experience of the prosperous economies of Asian Vision” has
been preciously the essence of the legend of bank’s success.
Southeast Bank Limited has been awarded license by the Government of Bangladesh as a
Scheduled Bank in the private sector in pursuance of the policy of liberalization of banking
and financial services and facilities in Bangladesh. In view of the above, the up-capital
adequacy requirement of Bangladesh bank.
2.11 OPERATIONAL AREAS
Southeast Bank Limited is a complete service Bank with a various array of all-inclusive
range of suspiciously tailored financial services and customer friendly simple banking
products and services geared for the needs of all customers segments. SEBLs operations
consists of:
• Real Time on line banking.

• Credit Card.
• Debit Card.
• ATM
• International Trade finance.
• Commercial Banking.
• Investment Banking.
• Investment Banking.
• Project Finance.
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• Syndication Loan.
• Mortgage Loan.
• Hire Purchase.
• Retail Banking.
• Foreign Remittance.
2.12 CUSTOMER COMMITMENTS
SEBL believe that customers are the kings and they serve the kings. Southeast Bank
Limited is a customer oriented modern banking institution and they believe in managing
with a long-term approach. The employees of SEBL understand that providing better value
to the customers is their true competitive advantage, and they consider it in every decision
they make. When SEBL participates with their customers and others they establish and
maintain the highest standard of performance. The customer must be at the center of all
their (SEBL) choices.
2.13 SEBL, S VISION
To be a premier banking institution in Bangladesh and contribute significantly to the

national economy.
SEBL, S MISSION
• High quality financial services with slate of the art technology.

• Fast & accurate customer service.
• Sustainable growth strategy.
• Follow ethical standards in business.
• Steady return on shareholders’ equity.
• Innovative banking at a competitive price.
• Attract and retain quality human resource.
SEBL, S CORE VALUES
• Integrity
• Respect
• Fairness
• Harmony
• Team spirit
• Courtesy
• Commitment
• Service Excellence
• Insight and Spirit
Page | 21
• Enthusiasm for Work
• Business Ethics
SEBL, S CORE STRENGTHS
• Transparent and quick decision making;

• Efficient team of performers
• Satisfied customers
• Internal control
• Skilled risk management
• Diversification
SEBL, S CORE COMMITMENTS
• Ours is customer focused modem banking institution in Bangladesh. Our business motives
center on the emerging needs of the market our commitments to the clients re the following:
• Provide service with high degree of professionalism and use of modern technology.
• Create life-long relationship based on mutual trust and respect.
• Response to customer needs with quickness and accuracy.
• Sharing their values and beliefs
• Grow as our customers grow.
• Provide products and services at Competitive pricing
• Ensure Safety and security of customers’ valuables in Crust with us.
SEBL, S CORPORATE CULTURE
Southeast Bank is one of the most disciplined Banks with a distinctive corporate culture.
Making. The people of bank can see and understand events, activities, objects and situation
in a distinctive way They mound 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/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 culture.
SEBL, S BUSINESS OBJECTIVE
Make sound investments.
Meet capital adequacy requirement at all the time.
Ensure a satisfied work force.
Page | 22
Ensure 100% recovery of all advances.
Focus on fee-based income.
Adopt an appropriate management technology
2.14 SEBL, S CORPORATE SLOGAN
A bank with vision
Organization structure:
Page | 23
2.15 SEBL, S ORGANIZATIONAL STRUCTURE
The Chairman is the head of the Board of Directors. There is one Managing Director who is also the
President mainly controls and supervises the major division of the bank. One Deputy Managing Director
reports to him. Four Executive Vice Presidents (EVP) and one Senior Executive Vice President (SEVP)
report to the Deputy Managing Director. Executive vice President Control the Senior Executive Vice
President controls the human resource and marketing divisions. Four Vice Presidents work under
Executive Vice Presidents.
The organization structure of Southeast bank Limited is quite horizontal were each person reports to only
one person which refers to a very group-working environment for example. Each officer reports to the
FAVP or AVP or FVP or VP or SVP or EVP, AVP or FVP or VP or SVP or EVP reports to the SEVP;
SEVP report to the Deputy Managing Director and he report to the Managing director.
In the organization structure of Principal Branch, SBL we can also observe that each person reports to
only one person. One Executive Vice President is the head of branch one First Vice President (Operation
Manager) and the in Charges of credit and foreign exchange department directly report to the EVP. The
Operation Manager controls the general banking, cash, accounts and computer department.
Page | 24
2.16 SWOT ANALYSIS OF SEBL
SWOT is a short form that is used to describe the particular strengths, weakness, opportunities and
threats that are strategies factors for a specific company. For the Southeast Bank Limited I found it as
follows:
Strengths:
Efficient management. Leading Retail loan providers Better employee relations. Better location of
the branch. Better financial standing. Interesting consumer schemes. Quick delivery of foreign
exchange. On line Banking ATM facility Simultaneously Islamic Banking
Opportunities:
Market leadership. Growth of the banking sector. Difficult consumer service scheme of the SEBL.
Make the goodwill. Perform more quickly services. Go beyond the national boundaries. SMS
banking.
Weakness:
Inadequate work force. Conservative loan facility. Profit rate is less than others. Lack of sufficient
own ATM booths
Threats:
Political instability. Intense competition. Government rules and regulation. Economical variation.
Policy of competitive banks. SWOT analysis for SBL.
Page | 25
Chapter-3
Analysis
(Performance Statement)
Page | 26
Jamuna Banks Performance Analysis(2013-2017)
3.1 In this report performance analysis of jamuna bank ltd. Interims of
❖ Liquidity ratio
❖ Profitability
❖ Leverage position
❖ Activity or efficiency
❖ Liquidity ratio
❖ Current ratio
❖ Adequacy ratio
3.1.1 Leverage position
❖ Debt to equity capital ratio
❖ Debt to total assets ratio
3.1.2 Profitability:
❖ Net operating margin
❖ Net profit margin
❖ Return on assets (ROA)
❖ Return on equity (ROE)
❖ Return on deposit (ROD)
3.1.3 Efficiency:
❖ Tax management ratio
❖ Degree of asset utilization
❖ Expense control efficiency
❖ Operating efficiency ratio
❖ Net profit margin
3.1.4 Adequacy ratio
❖ Capital Adequacy Ratio Assets quality indicators
❖ Loan to Deposit  Loan to Assets
❖ Equity Multiplier
3.1.5 Liquidity ratio:
Page | 27
Liquidity ratios are used to determine a company’s ability to meet its short-term debt obligations. The
liquidity ratio is the result of dividing the total cash by short-term borrowings. It shows the number of times
short-term liabilities are covered by cash.
3.2 Current ratio:

current ratio is calculated by dividing the total current assets of a company by its total current liabilities.
The current ratios standard norm is 2:1 which means that everyone taka of current liability is appropriately
covered by two takas of current assets
Current ratio= Current assets/ current liabilities
Calculation of current ratio 2017

2,017,287,110/1,033,698,462 =1.95
Particulars 2013 2014 2015 2016 2017
Current Ratio 10.85 7.07 6.087 1.94 1.95
Currnt Ratio
12
10
0
2013 2014 2015 2016 2017
Currnt Ratio
Interpretation:
In 2013 to 2015 company’s current ratio was 10.85 to 6.087 times higher than current liabilities, which
means JBL not cover the ideal norm 2:1 and they not using their assets efficiently or not securing
financing very well, or is not managing its working capital. But in 2016 to 2017 Current ratio was 1.94 to
Page | 28
1.95. which means JBL had more than enough to cover its current liabilities, because it’s decreased and
not cover the standard norm of 2:1.
Leverage Position:
leverage ratios are used to calculate the financial leverage of a company. Debt to equity
3.3 Capital ratio:
Debt to equity capital ratio is one of the banking financial leverage. It’s calculated by dividing total
liabilities by its stockholder’s equity. For most companies the maximum acceptable debt-to-equity ratio is
1.5-2 and less. For large public companies the debt-to-equity ratio may be much more than 2, but for most
small and medium companies it is not acceptable. However, JBL is a medium company and they not
maintain the standard norm.
Debt to equity Capital ratio= Total debt /Total equity

Calculation of debt to equity capital ratio in 2017
1,822,446,432,08 /1,542,455,5744 =11.81
Table-Debt to Equity Capital in 2017:
year 2017 2016 2015 2014 2013
Debt to Equity 11.81522802 9.71922863 8.11892129 11.91635581 11.99986129
Capital Ratio
Debt. To Equity Capital Ratio
12
10
0
2017 2016 2015 2014 2013
Debt. To Equity Capital Ratio
Page | 29
Interpretation
In the year of 2013 to 2014 debt to equity ratio was high. In general, high debt to equity ratio indicates
that the company may not be able to generate enough cash to satisfy its debt obligations. In the year2015
to 2016 debt to equity ratio was low. However, a low debt-to-equity ratio may also indicate that a
company is not taking advantage of the increased profits that financial leverage may bring. But in 2017
debt to equity ratio was increased. Higher outcome increases the risk also increases the profit. 21
3.4 Total debt to total assets ratio:
Debt to total assets means the banks financial risk. It’s calculated by total debt dividing by institution’s
total assets. If total debt to assets equals 1, it means the company has the same amount of liabilities as it
has assets. This company is highly leveraged. A company with a DTA of greater than 1 means the
company has more liabilities than assets. This company is extremely leveraged and highly risky to invest
in or lend to. A company with a DTA of less than 1 shows that it has more assets than liabilities and could
pay off its obligations by selling its assets if it needed to.
𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡
Total debt to total assets =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
1,822,446,432,08
=
1,156,404,486
= 0.921
Calculation of Debt to Total Asset ratio:
Year 2017 2016 2015 2014 2013

Total liability 1822446432 1534107786 12770474241 12906455109 106744932748
Total assets 1156404486 1398954253 14343401701 16919503313 197669198952
Total Debt. To 0.92196783 9.06709705 0.890337906 0.922578782 0.923076086
Total Assets
Ratio
Chart Title
2.5E+11
2E+11
1.5E+11
1E+11
5E+10
0 Total Liability Total Assets Total Debt. To Total Assets Ratio

2017 2016 2015 2014 2013
Page | 30
Interpretation
The JBL’s assets are financed by its debt. From the year 2013 to 2015 the DTA ratios was 0.92to 0.89
which means DTA ratio is less than 1 and JBL has more assets than liabilities. In the year 2016 DTA
increasing 9.06 which is greater than 1 means the company has more liabilities than assets. The higher
ratio may increase more risk. But in the year 2017 DTA ratio is 0.92 which is also not cover the standard
norm.
3.5 Profitability Ratio:
Profitability ratios are used to compare companies in the same industry, since profit margins will vary
widely from industry to industry.
Net profit margin:
It is a ratio of profitability which calculated by dividing the net profit after tax by revenue or net interest
income. Net profit margin is equal to how much net income is generated as a percentage of revenue.
Net profit margin= Net income after tax/ total operating revenue
Calculation of net profit margin in 2017
2076.58/8871.58 =0.23407 or 23.40%
Particulars 2013 2014 2015 2016 2017
Net Profit after tax 1144.47 1352.73 1642.85 1791.05 2076.58
Total Operating 5781.45 6277.96 7123.78 8188.98 8871.58
Income
Net Profit Margin 19.79% 21.54% 23.06% 21.87% 23.40%
Page | 31
Interpretation
In The years in 2013 and 2015 the bank earns handsome profit margin in percentages. and is exercising
good cost control. The net profit margin had increased in a higher proportion. It indicates that bank
performance outcome is good. But in 2016 it also decreased.
3.6 Net Operating Margin:
Net operating margin= (Operating revenue-operating expense)/ total asset Calculate
net operation margin in 2017
4389.88/197669 =2.22%
Particulars 2013 2014 2015 2016 2017

Total 5781.45 6277.96 7123.78 8188.98 8871.58
Operating
Income
Operating 2688.70 3047.29 3376.15 3964.26 4481.70
Expense
Operating 3092.75 3230.67 3747.63 4224.72 4389.88
Income-
Operating
Expense
Total Assets 115640 139895 143434 169195 197669
Net Operating 2.67% 2.30% 2.61% 2.49% 2.22%
Margin
Page | 32
Interpretation
In the year 2013 to 2017 the performance of JBL was decreasing. It was decreasing significantly from
2.67% in the year 2023 to 2.22% in the year 2017. It’s happened because JBL’s operating income was
less than the operating expense. They need to increase their operating income.
3.7 Return on equity
Return on equity= Net income after tax/ total equity capital
Calculate the return on equity in 2017
2076.58/15424.55 =13.46%
Year 2013 2014 2015 2016 2017

Net Profit 1144.47 1352.73 1642.85 1791.05 2076.58
After
Total Equity 8895.51 10830.87 15729.27 15784.25 15424.55
Capital
Return on 12.86% 12.48% 10% 11.34% 13%
Equity
Interpretation
In the year 2017 return on equity of JBL’s shareholders receiving increasing rate of return. In the year
2013 their return on equity was 12.86%, after that it was decreased in the year 2014 to 2016. But in 2017
the net income of JBL has increased than its equity capital. The higher percentage of return on equity is
better for the bank as well as shareholders.
Page | 33
3.8 Return on Asset (ROA):
Return on assets is a profitability ratio. Its shows how profitable a bank and the bank are related it its total
assets. It’s given an idea to the bank that how efficiently they generate profits by using its assets.
Return on Asset= Net income after tax/ total assets
Calculate the return on asset in 2017
2076.58/1976.96 105.05%
Table- Return on assets

Year 2013 2014 2015 2016 2017
Net Profit After Tax 1144.47 1352.73 1642.85 1791.05 2076.58
Total Assets 1156.40 1398.95 1434.34 1691.95 1976.96
Return on Equity 98.96% 9 96.69% 114.53% 105.85% 105.05%
Interpretation
Most used profitability ratio is return on assets. In the year 2015 to 2016 the return on assets of JBL is
increasing. Higher the ROA number is better, because the company is earning more money on less
investment.
3.9 Return on Deposits (ROD):

Return of deposits means the amount of net income of return as a percentage of total deposits.
Page | 34
Return on deposits= Net income/Total deposit
Calculate the return on deposits in 2017
2076.58/167571.33 =0.012392215 or 1.24%
Table-Return on Deposits
Year 2013 2014 2015 2016 2017
Net Income After 1144.47 1352.73 1642.85 1791.05 2076.58
Tax
Total Deposits 97485.61 114635.13 118849.18 141550.96 167571.33
Return on Deposits 1.18% 1.20% 1.38% 1.27% 1.24%
Interpretation
Return on deposits was 1.38% in the year 2015. ROD of JBL was decreased in 2017 because a substantial
increase in deposit. Because the firms applying efficiency ratio to earn profit.
Efficiency ratio:
efficiency ratio determine the efficiently of using its assets and managing its operations.
3.10 Tax Management Ratio:

The tax management efficiency ratio of a fund measures what percentage of a fund’s earnings is lost to
taxation. Tax efficiency is a useful way to measure the desirability of a fund. Funds that lose a lot of
money to taxes have low efficiency and are less desirable, while those that lose little to taxes have a high
tax management efficiency ratio and greater desirability.
Page | 35
Tax Management Ratio = Net income after tax/ net income before tax
Calculate of tax management ratio in 2017
2076.58/3482.4 =17.02
Table-Tax Management Ratio

Year 2013 2014 2015 2016 2017
Net income after 1144.47 1352.73 1642.85 1791.05 2076.58
tax
Net income before 2349.76 1897.01 2187.23 2819.66 3482.41
tax
Tax Management 0.487058253 0.713085329 0.751109851 0.635200698 17.02114754
Ratio
Interpretation
In the year 2013 to 2017 tax management ratio of JBL was fluctuating from 0.48 to 17.02. The
management should try to maximize this ratio because their direct cash expenses is lower than the net
income. And tax is direct cash.
Page | 36
3.11 Expense control efficiency:
𝐧𝐞𝐭 𝐢𝐧𝐜𝐨𝐦𝐞 𝐛𝐞𝐟𝐨𝐫𝐞 𝐭𝐚𝐱 𝐚𝐧𝐝 𝐠𝐚𝐢𝐧

Expense control efficiency=
𝐓𝐨𝐭𝐚𝐥 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐫𝐞𝐯𝐞𝐧𝐮𝐞
Calculating Expense control efficiency in 2017

3482.41/8871.57 =0.39
Table- Expense Control Efficiency

Year 2013 2014 2015 2016 2017
NI before tax and gain 2284.89 1847.37 2187.24 2819.66 3482.41
total operating revenue 5635.66 6090.62 7123.78 8188.98 8871.57
Expense control 0.405434324 0.303313948 0.307033625 0.344323713 0.392535932
efficiency
Interpretation
Expense control efficiency of JBL was decreased in the year 2013 to 2017 because the changes of net
income before tax and gain also the total operating revenue. Its means JBL effectively control its
expenses.
Degree of Asset Utilization: degree of assets utilization used to compare companies’ efficiency over time
Page | 37
3.12 Degree of assets utilization
Degree of assets utilization = Total operating revenue/ Total Asset
Calculating Degree of assets utilization in 2017
8871.57/1976.69 =0.044
Table-Degree of Asset Utilization
Year 2013 2014 2015 2016 2017
Total Operating 5635.66 6090.62 7123.78 8188.98 8871.57
Revenue
Total Assets 1156 1398.95 1434.34 1691.95 1976.69
Expense control 4.87340995 4.353708138 4.966590906 4.83996572 4.488093732
efficiency
Interpretation
Degree of assets utilization of JBL in the year 2013 to 2015 was 0.048 to 0.049. Increasing asset
utilization means the company is being more efficient with each dollar of assets it has. in the year 2015 to
2017 the ratio decreasing from 0.049 to 0.044 because their total assets were increase at a higher rate than
their operating income.
Page | 38
3.13 Operating Efficiency:
The operating ratio shows the efficiency of a company's management by comparing the total operating
expense of a company to net sales. The smaller the ratio, the more efficient the company is at generating
revenue versus total expenses.
Operating efficiency ratio= Total operating expense/ total operating revenue
Calculating Operating efficiency in 2017
8871.57/4481.7 =1.97
Year 2013 2014 2015 2016 2017

Total Operating 5635.66 6090.62 7123.78 8188.98 8871.57
Revenue
Total Operating 2688.7 3047.29 3376.15 3964.26 4481.7
Expense
Operating efficiency 2.09 1.99 2.11 2.06 1.97
ratio Times Times Times Times Times
Interpretation
Operating efficiency ratio of JBL was decreased 2.09 to 1.99 in the year 2013 to 2014.but in the year
2015 it was increased 2.11 and also again decreased in the year 2017 which is 1.97. its means the bank
was not efficiently utilize their revenue to cover the operating expense.
Capital adequacy ratio:
Page | 39
capital adequacy ratio means a bank available capital expressed as a percentage of its risk weighted credit
exposures.
Two type of capital adequacy are measured:
Tier-1: capital, which is losses without a bank being required to cease trading.
Tier-2: capital which can absorb losses of a winding up and so provides a lesser degree of protection to
depositors.
3.14 Capital adequacy ratio
Capital adequacy ratio = (tier one capital+ tier two capital) / risk weighted assets
Calculating capital adequacy ratio in 2017 =19901.61/168137.76 =11.84%
Table- Capital Adequacy Ratio

Particulars 2013 2014 2015 2016 2017
Tier 1 7777.91 9144.80 10773.83 11359.22 12179.70
(core capital)
Tier II 1499.89 1951.87 3851.99 4398.76 7721.91
(supplementary
capital)
Capital base 9277.79 11096.67 14625.82 15757.97 19901.61
(tier1+ tier II)
Risk-weighted 83281.74 98651.59 114821.97 145591.93 168137.76
assets
Capital 11.14% 11.25% 12.74% 10.82% 11.84%
adequacy ratio
Page | 40
Interpretation
In the year 2016 to 2017 the capital adequacy ratio of JBL was 10% to 11.84% which means they have
11.84% minimum requirement in Bangladesh bank. before that it was 12% in the year 2015.
3.15 Loans to total deposit:

The loan-to-deposit ratio (LDR) is used to assess a bank's liquidity by comparing a bank's total loans to its
total deposits for the same period. If the ratio is too high, it means the bank may not have liquidity to
cover any unforeseen fund requirements. Also, if the ratio is low the bank may not be earning as much as
it could be.
Loan to total deposit =total loan/ total deposits

Calculating loans to total deposit in 2017
=1,422,52.94/167571.33
=0.84
Table-Loans to total deposit
Year 2013 2014 2015 2016 2017
Total Loans 67669.38 77899.79 87252.28 117099.61 142252.94
Total Deposits 97485.61 114635.13 118849.18 141550.96 167571.33
Loan to Total deposits 0.69414737 0.67954553 0.73414289 0.82726115 0.84890977
Page | 41
Interpretation
In the year 2013 to 2017 presentence of the ratio was 0.69 to 0.84 which is high because the bank may not
have enough liquidity to cover unforeseen fund requirement. The bank may not have enough liquidity to
cover any unforeseen fund requirements.
3.16 Loan to Assets Ratio:

Loans to assets ratio is a financial ratio that usually is applied for banks (or credit unions) to measure the
relation of the bank’s loan portfolio to the total assets.
Loan to assets Ratio= Total loans/Total Assets Calculating
loan to assets ratio in 2017 =142252.94/1976.69
=71.96
Year 2013 2014 2015 2016 2017
Total Loans 67669.38 77899.79 87252.28 117099.61 142252.94
Total Assets 1,156 1398.95 1434.34 1691.95 1976.69
Loan to Assets 58.5172778 55.6844705 60.8309606 69.2098525 71.9652247
Interpretation
In year 2016 and 2017 JBL’s loan to total asset ratio was respectively 69.20% and 71.96%. Which is
higher in 2017 it means the risk is high.
Page | 42
3.17 Equity multiplier:
Equity multiplier ratio is commonly used financial ratio calculated by dividing a company's total asset
value by total net equity. It is a measure of financial leverage. Companies finance their operations with
equity or debt, so a higher equity multiplier indicates that a larger portion of asset financing is attributed
to debt. The equity multiplier is therefore a variation of the debt ratio.
Total Assets
Equity multiplier=
Total equity capital
Calculating Equity multiplier ratio in 2017

=1976.69/15424.55
=0.12
Table-Equity multiplier
Year 2013 2014 2015 2016 2017

Total Loans 1,156 1398.95 1434.34 1691.95 1976.69
Total equity capital 8895.51 10830.87 15729.27 15784.25 15424.55
Equity Multiplier 0.12999817 0.12916322 0.09118923 0.1071923 0.1281522
Interpretation
JBL equity multiplier ratio is not so good because in higher multiplier increases the loss. And JBL equity
multiplier ratio was unstable.
Page | 43
PERFORMANCE OBSERVATION OF SOUTHEAST BANK LIMITED.
Some general observations of the performance of last five years (2005-2009) of the bank are as
follows:
3.18 Growth in Different Businesses of SEBL:
The SOUTHEAST Bank has performed well in last five years where there has been significant
growth in different segments of the Bank. The overall performance of the Bank is discussed along
with graphical presentation in the data analysis part of this report. Here growth for some of the
different business of SEBL is shown.
3.19 Growth in Assets.
Total assets of the bank (excluding contingent liabilities) have increased from TK.43294 million
in 2013 to TK 112677 million in 2017.
Asset Growths
Year 2017 2016 2015 2014 2013
Asset 112677 81181 64370 53706 43294
Asset Growth
3.20 Growth in deposit
Over the last five years the deposit of the bank is increasing at a large rate. In the last five years
data we can see that the bank has collected deposits in different savings criteria.
Deposits
Growth (Figure in
Million Taka)
Year 2017 2016 2015 2014 2013
Deposits 96669 68714 55474 46056 58258
Page | 44
3.21 Growth in loans and advances
Loans and advances have increased from Tk. 32551 million in 2005 than that of 77497million in
2009. Import, export trade finance and working capital for industrial units were the major lending
areas of the bank.
(Figure in Million Taka)
Loans and Advances
Year 2017 2016 2015 2014 2013
Total Loans & Advances 77497 60281 48164 41147 32551
3.22 Growth in net profit
SEBL increased operating efficiency and increased revenue both are the reason behind the growth
in net profit.
Net Profits
Year 2017 2016 2015 2014 2013
Net Profit 1870 887 1223 910 374
3.23 Return on Asset (ROA)
Return on assets (ROA) is measured by the ratio of net income and total assets. By the returning
assets, if the bank’s net income increases the profitable ratios of the bank increases. Also, by
measuring the ROA, it can be determined that what percentage of the total asset is the net income
i.e. how much return are they getting over the assets. SEBL is giving continued emphasis on quality
assets, which resulted in providing a sound asset base for the bank.
Page | 45
Return on Asset
Year 2017 2016 2015 2014 2013

Return on 1.66% 1.09% 1.90% 1.66% 0.86%
Asset
3.24 Return on equity (ROE)
Return on Equity (ROE) represents earning after tax over equity. The ROE (net income divided
by equity capital) is the most important measurement of banking returns as well as a company’s
returns because it is influenced by how well the bank has performed on all other categories and
indicates whether a bank can compete for private sources of capital in the economy. The higher
the ROE, the better for the bank, as they are getting higher amount of net income over the equity.
Return on Equity
Year 2017 2016 2015 2014 2013
16.51% 12.06% 19.90% 17.98% 17.64%

Return on
Equity
3.24.1 Export
The export the SEBL is increased to 46,724 million in 2009 from Tk 13,511 million in 2005. The
following graph shows the growth the export:
Export
Year 2017 2016 2015 2014 2013
Export 46724 42178 28771 25874 13511
Page | 46
3.24.2 Import
The import of the SEBL is increased to Tk. 69583 million in 2009 from Tk 29079 million in 2005.
The following graph shows the growth the import:
IMPORT
Year 2017 2016 2015 2014 2013
69583 58020 38470 35125 29079

IMPORT
3.25 Financial statement analysis
Financial statement Analysis involves a comparison of a firm’s performance with that of other
firms in the same line of business, which usually is identified by the firm’s industry Classification
Generally speaking, the analysis is used to determine the firm’s financial position so as to identify
its current strengths and weakness and to suggest action the firm might pursue to take advantage
of the strength and correct any weakness.
Various measuring instruments may be used to evaluate the financial health of a business,
including Horizontal, Vertical and Ratio Analysis. A Financial analyst uses the ratio to make two
types of comparisons.
1. Industry comparison: The ratios of a firm are compared with those of similar firms or
with industry averages or norms to determine how the company is faring relative to its
competitors. Industry average ratio are available from a number of sources including.
a) Dun & Bradstreet: Dun & Bradstreet computes 14 ratios for each 125 lines of business.
They are published annually in Dun’s Review and key business ratios.
b) Robert Morris Associates: This association pf bank loan officer publishes Annual
Statement Studies. Sixteen ratios area computed for more than 300 lines of business, as well as a
percentage distribution of items on the balance sheet and income statement (common size financial
statement)
1. Trend Analysis: A firm’s present ratio is compared with its past and expected future ratio
to determine whether the company’s financial condition is improving or deteriorating over
time.
Page | 47
After completing the financial statement analysis, the firm’s financial analyst will consult with
management to discuss their plans and prospect, any problem.
3.26 Users of financial statement analysis
Financial statement Analysis is not only important for the firm’s managers but also for the film’s
investors and creditors.
Internally financial manager uses the information provide by financial analysis to help financing
and investment decisions to maximizes the firms value
Externally, stockholder and Creditors use financial statement analysis to evaluate the attractiveness
of the firm as an investment by examining its ability to meet its current and expected future
financial obligation.
tools of financial statement analysis
Ratio Analysis.
Trend Analysis.
Index Analysis.
3.27 Ratio analysis of SEBL
Ratio analysis: Ratio analysis is a diagnostic tool that helps to identify problem areas and
opportunities within a company. The most frequently used ratios by financial analysts provide
insights into a firm’s
– Liquidity
– Degree of financial leverage or debt
– Profitability
-Efficiency
-Value
3.28 Importance of Financial Ratio
Ratio analysis is very important for every business, because by calculating ratio analysis we can
understand the business position, business strength and weakness. By knowing this information,
management can take its necessary steps to organize their goal. Now we will analysis Basic Bank
Limited ratio according to ‘Du Point Analysis’.
Page | 48
3.29 Bank Profitability Ratio:
Profitability refers to the ability of a firm to generate revenues in excess of expenses. When making
compression across firms it is useful to control for different in their resource base. There are some
basic formulas for profitability ratio:
3.29.1 Return on Assets (ROA):
Return on Assets (ROA) =
Calculation:
% of Ratio
Year Net income Total Assets
2017 1870.19 112676.98 1.659780019%

2016 887.24 81181.53 1.092908695%
2015 1222.97 64370.69 1.899886423%
2014 909.86 53706.12 1.694145844%
2013 374.2 43294.81 0.86430683%
Graphical Presentation:
Decision: The above figure represents the Return on Assets (ROA) Ratio of Southeast Bank
Limited & we see that in the year 2015 Southeast Bank was in highest profitable position. In 2013
the Bank was in lowest profitable position.
3.29.2 Return on Equity (ROE):
Return on Equity (ROE) =
Calculation:
% of Ratio
Year Net income Total Shareholders’ Equity
2017 1870.19 9927.16 18.84%

2016 887.24 7657.01 11.59%
2015 1222.97 6468.36 18.91%
2014 909.86 4940.92 18.41%
2013 374.2 2236.84 16.73%
Page | 49
Decision: The above figure represents the Return on Equity (ROE) Ratio of Southeast Bank
Limited & we see that in the year 2015 Southeast Bank was in most profitable position. In 2016
3.29.3 Return on Deposits (ROD):
Return on Deposits (ROD) =
Calculation:
Year Net Income Total Deposit Ratio
2017 1870.19 96669 1.934632612%

2016 887.24 68714.67 1.291194442%
2015 1222.97 55474.05 2.20458034%
2014 909.88 46056.18 1.975587207%
2013 374.2 38258.15 0.97809225%
Decision: The above figure represents the Return on Deposit (ROD) Ratio of Southeast Bank
Limited & we see that in the year 2015 Southeast Bank was in most profitable position. In 2013
3.29.4 Return on Shareholder capital:
Return on Shareholder capital=
Calculation:
Year Net Income Shareholder contribution capital Ratio
2017 1870.19 9927.16 18.8391242%

2016 887.24 7657.01 11.5872906%
2015 1222.97 6468.36 18.9069563%
2014 909.88 4940.92 18.4151939%
2013 374.2 2236.84 16.7289569%
Page | 50
Decision: The above figure represents the Return on Shareholder Capital (ROSC) Ratio of
Southeast Bank Limited & we see that in the year 2015 Southeast Bank was in most profitable
position. In 2016 the Bank was in lowest profitable position.
3.29.5 BANK Efficiency Ratio:
Efficiency: Efficiency is the measure to define the competence of the bank in investment
management and utilization of assets. Banks operating performance can be reviewed in terms of
financial performance and operating efficiency.
Operating expenses to revenue (OER):
Operating expenses to revenue (OER) =
Calculation:
Year Operating Income (Amount) Operating expenses (Amount) Ratio (%)

2017 13702.45 9087.79 150.779%
2016 10250.33 7237.55 141.627%
2015 8670.47 5754.27 150.679%
2014 6766.11 4703.45 143.854%
2013 4689.55 3216.11 145.814%
Decision: The above figure represents the Operating expenses to revenue (OER) Ratio of
SOUTHEAST Bank Limited & we see that in the year 2015 & 2017 Basic Bank was in most
Efficiency position. In 2016 the Bank was in lowest efficiency position. So this is the good sign of
the bank.
3.29.6 Assets-Quality indicators:
Loans to Deposits (LTD):
Loans to Deposits (LTD) =
Page | 51
Calculation:
Year Total loan and Advance Total Deposit Ratio
2017 77497.57 96669 80.16796491%

2016 60281.26 68714.67 87.72691479%
2015 48164.6 55474.05 95.50602489%
2014 41147.28 46056.18 89.34149554%
2013 32551.09 38258.15 85.08276014%
Decision: The above figure represents the Loans to Deposits (LTD) Ratio of Southeast Bank
Limited & we see that in the year 2017 Southeast Bank was in lowest deposit position. In 2015,
the Bank was in most deposit position.
3.29.7 Loan Ratio (LR):
Loan Ratio (LR) =
Calculation:
year Total loan and Advance Total Assets Ratio
2017 77497.57 112676.98 68.77853 %

2016 60281.26 81181.53 74.2549%
2015 48164.6 64370.69 74.82381%
2014 41147.28 53706.12 76.61563%
2013 32551.09 43294.81 75.18474%
Decision: The above figure represents the Loan Ratio (LR) Ratio of Southeast Bank Limited &
we see that in the year 2014 Southeast Bank was in most loan position. In 2017 the Bank was
decrease loan position.
Liquidity Ratios:
Page | 52
Liquidity: The ability to instantly pay off the current liabilities of the bank. That’s means the cash
management of the organization policy and efficiency to sanctioning investment compared to
deposits during the specific year of period.
3.29.8 Equity Multiplier (EM):
Equity Multiplier (EM) =
Calculation:
Year Total Assets Total Equity Ratio
2017 112676.98 9927.16 1135.037%

2016 81181.53 7657.01 1060.225%
2015 64370.69 6468.36 995.1625%
2014 53706.12 4940.92 1086.966%
2013 43294.81 2236.84 1935.535%
Decision: The above figure represents the Equity Multiplier (EM) Ratio of Southeast Bank Limited
& we see that in the year 2013 Southeast Bank was in most equity multiplier position. In 2014 the
Bank was fall down but 2015 is the lowest position and 2016 & 2017 bank was also increasing his
equity multiplier position & smoothly increasing.
3.29.9 Equity to Deposits (ETD):
Equity to Deposits (ETD) =
Calculation:
Year Shareholder contribution capital Total Deposit Ratio
2017 9927.16 96669 10.26923%

2016 7657.01 68714.67 11.1432%
2015 6468.36 55474.05 11.66015%
2014 4940.92 46056.18 10.72803%
2013 2236.84 38258.15 5.846702%
Page | 53
Decision: The above figure represents the Equity to Deposits (ETD) Ratio of Southeast Bank
Limited & we see that in the year 2016 & 2015 Southeast Bank was in most equity to deposit
position. In 2017 the Bank was slightly fall down his equity to deposit position.
3.29.10 Total liabilities to shareholder capital (TLSC):
Total liabilities to shareholder capital (TLSC) =
Calculation:
Year Liabilities Shareholder contribution capital Ratio
2017 112677 9927.16 1135.03741%

2016 81181.53 7657.01 1060.22494%
2015 64370.69 6468.36 995.162452%
2014 53706.12 4940.92 1086.96599%
2013 43294.81 2236.84 1935.5345%
Decision: The above figure represents the Total liabilities to shareholder capital (TLSC) Ratio of
Southeast Bank Limited & we see that in the year 2013 Southeast Bank was total liabilities to
shareholder position is higher. But in 2014, 2015, 2016, the Bank was fall down, again 2017 the
bank was his total liabilities to shareholder capital position is going to increase So this is the good
sign of the bank.
3.30 Finding of Financial Ratio Analysis:
Financial ratio analysis of southeast bank represents the overall performance of their activities in
his part. I have tried focusing the ratio of bank profitability, bank efficiency, in favor of liabilities
and assets over the year. southeast bank how much efficient in their activities to gain profit against
total assets and liabilities, return on deposit and equity, operating and net profit margin, quality to
efficiently use assets, cash management, operating income, assets turnover etc. calculated in this
part. That focuses the management efficiency of southeast bank and profitability and productivity.
Ratio analysis helps to know the performance and capability of this organization, is it profitable
of loss for investors and shareholders.
Return on assets and return on equity are two ratios that measure the overall efficiency of the firm
in managing its total investment in assets and in generating return to shareholders. Return on
investment or return on assets indicates the amount of profit earned relative to the level of
Page | 54
investment in total assets. Return on equity measure the return to common shareholders. The ratio
is also calculated as return on common equity if firm have preferred stock outstanding. That’s why
return on assets ratio is 1.66% that’ is normal in banking sector but slightly increase then previous
year 1.09% so southeast bank have to increase this ratio. On the other hand, return on equity ratio
is 18.44% that is acceptable and good but have to remember that it can be more by increase
efficiency.
The operating profit margin measures the percentage of each sales or deposit and purchase
remaining after all cost and expenses other than interest and taxes are deducted. Net operating
margin is better position in 2017.and also good position then last 4 years.
In risk ratio, deposits to assets ratio and Equity to deposits ratio is better than last year so it is good
sign of southeast Bank.
Page | 55
Chapter-4
(Findings, Recommendations & Conclusion)
Page | 56
Findings
Jamuna Bank Ltd.
➢ Current ratio of JBL was not maintained. In the year 2013 to 2017 they not cover the
standard norm 2:1.
➢ In JBL Net profit margin increased slightly from 2016 to 2017 after which it consistently
fell in the other years.
➢ In JBL Net operating margin increasing cost than previous year. In the year 2017 to 2016
it was 2.49% to 2.22%.
➢ Return on equity ratio was fluctuated year to year.
➢ Capital adequacy ratio was increased in the year 2015 which is 12.74% than the year 2017
which is 11.54%.
➢ Return on asset from 2013 to 2017 is continuously decreasing.
➢ Loan to deposit is fluctuating trend in the year 2013 to 2017.
➢ Loan to assets ratio is fluctuating trend with values between 0.5 to 0.7.
Southeast Bank Ltd.
➢ Based on my experience, i can be said that Southeast Bank should reconsider its and
services. That better satisfy customer needs and requirements Bank should be more tactful
in dealing with the customers and launch new products that fully meet customer
expectations.
➢ Southeast Bank Limited has already established a favorable reputation in the banking
industry of the country. It is one of the leading private sector commercial banks in
Bangladesh. The bank has already shown a tremendous growth m the profits and deposits
sector.
➢ The bank successfully stepped in to the Fifteen year of operations having enjoyed the
complete confidence of the depositors and achieving significant growth in the entire areas
of banking operations
➢ The bank follows the online banking system to provide the customer better services; but
all the brandies of South East bank are not following the online banking system
➢ The Bank has a deposit base of Tk.96, 669.05 million 2013, which posted a growth of
40.68% then last year.
➢ The company philosophy to workout best solutions for customers and clients as a business
and customer friendly Bank
➢ South East bank has an interactive corporate culture the working environment is very
friendly, interactive and informal. And there are no hidden barriers or boundaries while
communication between die superior and the subordinate. This corporate culture provides
as a great motivation factor to the employees.
Page | 57
Recommendations
Jamuna Bank Ltd.
To identify this bank needs proper information system. JBL has to minimize their service gap
though strong study on customer objective, expectation, perception and critical aspects.
Step should be taken to implement the new process:
JBL’s should maintain their current ratio standard.

Net profit ratio is decreasing. They should increase their net profit by investing the
capital.
Net operating margin ratio also decreasing. JBL should reduce operating expense and
total assets should enhancing.
JBL’s return on assets is very low and they should increase fixed assets.
Loan to total assets ratio was upward trend. Jamuna bank should increase the total assets
and decreased loan amount.
JBL management should ensure their proper implication.
Southeast Bank Ltd.
Southeast Bank is one of the moat flourishing Banks of Bangladesh with wide growth
opportunities m the industry This report gave valuable insights as to where improvements were
necessary to improve the quality of service. Southeast Bank with its strong corporate image and
organization strength can successfully utilize the presented based on the findings.
Page | 58
Conclusion
Financial analysis plays a very important role in providing facts and figures for the decision
makers. In the same way ratios will act analysis kit in the hands of financial analyst, these ratios
will help is and answering the basic question like why, how what of these statements. Now a day’s
financial analysis is very much in consideration for decision making, in deciding what to do and
what not to do are required to analyze the data as par as their requirements. Thus, in this project
was brief outline of ratio analysis like how to analyze the facts and figures given in the financial
statements. Throughout the project analyzed organization’s financial position and pros and cons
of the situations and also interpreted the data. Despite some limitation, analyze the facts and figures
with accuracy. Based on the analysis and interpretation the report was give findings and
suggestions for the organization as. Finally, project really helps in knowing the practical things of
the corporate world.
Reference:
1. www.assignmentpoint.com
2. https://jamunabankbd.com/
3. https://www.southeastbank.com.bd/
4. https://www.bb.org.bd/pub/
5. www.investopedia.com.
6. Assignmentpoint.com
Others:
1. JBL Annual Report 2013-2017

2. SEBL Annual Report 2013-2017
3. Financial Express Newspaper
Page | 59

An Analysis of The Financial Statement Between Jamuna Bank

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An Analysis of the Financial Statement between

Jamuna Bank Ltd. & Southeast Bank Ltd.

Subject: Submission of Internship Report.

Mst. Sharmin Afroz

Serial No. Contents Page

1.2 Origin of the Report

1.4.1 Research Design

1.4.2 Data Collection Method:

1.4.2.1 Sources of Data

1. Face to face conversation with the respective officers and clients.

2. Practical work experience from different department of the concerned officers.

3. Collect ratios from Audit department through personal interview.

➢ Annual Reports of Jamuna Bank Limited.

➢ Online data from JBL website.

➢ Several articles related on financial analysis

1.4.3 Data Analysis Method:

1.5 Scope of the Report

1.6 Limitations of the study

Lack of Supervision by the bank officers

2.2. JBL (Vision, Mission and Objectives)

Fig 1: Values of Jamuna Bank Limited.

2.4 Corporate Slogan

The Management structure of Jamuna Bank Limited is given below with

Ismail Hossain Siraji, Chairman

Introduce fully automated systems through integration of information technology.

Ensure an adequate rate of return on investment.

 Maintain adequate liquidity to meet maturing obligations and commitments.

 Maintain a healthy growth of business with desired image.

 Maintain adequate control systems and transparency in procedure.

Pursue an effective system of management by ensuring compliance to ethical norms, transparency

To diversify portfolio both in the retail and wholesale market.

Small market share.

They have a limited branch network over the country.

Government is imposing newer and harder rules and regulations.

2.11 OPERATIONAL AREAS

• Real Time on line banking.

2.12 CUSTOMER COMMITMENTS

2.13 SEBL, S VISION

To be a premier banking institution in Bangladesh and contribute significantly to the

• High quality financial services with slate of the art technology.

SEBL, S CORE VALUES

SEBL, S CORE STRENGTHS

• Transparent and quick decision making;

SEBL, S CORE COMMITMENTS

SEBL, S CORPORATE CULTURE

SEBL, S BUSINESS OBJECTIVE

Make sound investments.

Meet capital adequacy requirement at all the time.

Ensure a satisfied work force.

Focus on fee-based income.

Adopt an appropriate management technology

2.14 SEBL, S CORPORATE SLOGAN

A bank with vision

3.2 Current ratio:

Current ratio= Current assets/ current liabilities

Calculation of current ratio 2017

Debt to equity Capital ratio= Total debt /Total equity

Debt. To Equity Capital Ratio

Debt. To Equity Capital Ratio

Year 2017 2016 2015 2014 2013

0 Total Liability Total Assets Total Debt. To Total Assets Ratio

Particulars 2013 2014 2015 2016 2017

Year 2013 2014 2015 2016 2017