Professional Documents
Culture Documents
Dear Ma’am,
With due respect I would like to state that, I have completed the internship program with
“Rupali Bank Ltd.”(Monoharpur Corporate Branch, Cumilla).It is a pleasure for me to be
able to present my internship report on “Evaluation of performance of Rupali Bank Ltd.”. I
express my gratitude to you for your continuous support that made me possible to complete the
report.
Therefore, I would like to express my heartiest gratitude to you for your full hearted inspiration,
instructions and valuable advices. Thank you for accepting the report. I am very glad to submit
the report to you.
Sincerely Yours,
……………………………………………
ID NO: 1601010030
1
Student’s Declaration
………………………………..
ID NO: 1601010030
2
Certificate of Supervisor
This is to certify that Md. Millad Hossan student of Britannia University Bangladesh Bearing
ID No: BBA-1601010030 under faculty of School of business has done an internship report
titled “Evaluation of performance of Rupali Bank Ltd.” At Comilla Monoharpur Corporate
Branch under my supervision.
The student is found to be intelligent, sincere and hardworking. The student has put in a lot of
work and has also brought forth his views and ideas which are being studied for implementation
at appropriate time. It is a record of internship carried out by Md. Millad Hossan under my
supervision. No part of the project has been submitted for any degree, diploma, and title of
recognition before.
…………………………………………..
3
Acknowledgement
At first I would like to express my gratitude to Almighty Allah who has given me opportunity to
go through the total process of internship and to write a report in this regard. I am also very
grateful to my parents who supported me during the hard times I faced. I would like to take the
opportunity to express my gratitude to my Supervisor. It was a great pleasure for me to work in
Rupali Bank Limited (Comilla Monoharpor Corporate Branch) as an intern. I thank all the
employees for being friendly and cooperative. I was taught lots of important things through-out
my internship career because of their proper attention and co-operation. My deepest
appreciation and special thanks goes to Md. Salim the AGM of Rupali Bank Ltd.(Comilla
Monoharpur Corporate Branch), for extending his support in compiling this report. I would
specially like to thank Md. Lutfur Rahman 2nd officer Md. Nasir Uddin Senior officer Mrs
Taslima akter officer cash also other employees, of Rupali Bank, Comilla Monoharpur
Corporate Branch who helped me a lot during my Internship days with valuable advices,
guidance and necessary information. At last I must mention the wonderful working environment
and group commitment of this bank that has enabled me a lot deal to do and observe the banking
activities during my internship period of three months. Finally I convey my sincere thanks to my
friends who inspire in different ways to complete the report and the course as well.
4
Executive Summary
Doing Internship in financial institutions always gives best chance to finance students to apply
their knowledge on practical field. Financial institutions have very wide range of activities in the
economy of a country. Banks are the most important one in the financial sector as they play a
very crucial role for the economy. Banking business mainly maintains flow of funds from
depositors to investors. In doing so, banks need to collect deposit from the depositors and then
distribute those as loan to the investors. Besides, banks provide assistance in international trade,
money transfer, collection and payment of utility and other bills, etc. All of which are fully
customer oriented. Therefore, commercial banks are treated as service organizations and their
business is largely dependent on the quality of services they provide. Hence, the efficiency and
success of commercial banks depend entirely upon the satisfaction of their clients. So the key
factor of any commercial bank is the customer service provided by them. This report “Evaluaton
of performance of Rupali Bank Ltd” is the picture of quality services provided by one of the
well-known state owned public commercial bank of Bangladesh ‘Rupali Bank Limited’.
5
Table of Contents
SL No. Title
Letter of Transmittal 01
Certificate 02
Student’s Declaration 03
Certificate of Supervisor 04
Acknowledgement 05
Executive Summary 06
1 Chapter: Introduction
1.1 Introduction 08
1.2 Background of the study 09
1.3 Company Profile 10-16
1.4 Rational of the Study 17
1.5 Objective of the study 17
1.6 Limitations of the study 17
2 Chapter: Literature Review 18-20
3 Chapter: An Overview of Rupali Bank 21-36
4 Chapter: Methodology 37
4.1 Data Collection 38
4.2 Classification of data 38
4.3 Analysis of data 39
4.4 Data processing 39
5 Chapter: Ratio Analysis 40-47
6 Chapter: Findings and Recommendations 48
6.1 Findings of the study 49
6.2 Recommendations 50
Conclusion 51
6
Chapter – ONE
INTRODUCTION
1.1 Introduction
Banking has a long and rich history. It started as a result of people’s need. And with ages it has
been playing an important role in fulfilling the dire needs of businessmen and others. As the size
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and complexities of business is increasing day by day banking sector is also providing various
innovative services with basic functions to increase size but to reduce the complexities.
Modern banking is a result of evolution driven by changing economic activities and life styles.
Entering in to a new millennium, banking needs have become more diverse and exotic than ever
before. It is known now that commercial bank is a profit maximizing institution. Hence it should
provide loans to those sectors in which its return is higher. But the nationalized commercial
banks are conducting banking business with different purposes. The main purpose is not just to
make profit but also to maximize the social benefit. Commercial banks provide a variety of other
services to their customers as for example remittance facilities, credit information about
customers, financial advice, collection of debts and dues etc. Banks also provide a number of
trust services to their customers. These services may either corporate trust services, which arise
in connection with the issue of bonds; personal trust services under which they manage property
on behave of their clients or corporate pension funds that provide retirement benefit for their
employees. After the completion of four-years and twelve semesters academic BBA program I,
Md. Md Millad Hossan, student of Britannia University, Bangladesh was placed in Rupali Bank
Bangladesh Limited (Monohorpor Branch) for the Internship Program. As a requirement for the
completion of the program I need to submit a report, which includes “The Performance
Evaluation of Rupali Bank Ltd”
8
Program. The main purpose of the program is to expose the students to the real world situation
.This report is done as a partial requirement of the internship program for the BBA students. This
report is prepared for the internship program consisting of a major in depth study of the
total banking business of Rupali Bank Ltd. Practical knowledge is fundamental for the
application of theoretical intelligence. Bearing this in mind and internship program was being
included in the BBA curriculum. The goal of this analysis is to expose the student in the
organizational work situation and also to provide an opportunity for applying classroom learning
in practice. There are some difference between theories and practice.
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Rupali Bank Ltd. (RBL) was constituted with the merger of 3 (three) erstwhile commercial
banks i.e. Muslim Commercial Bank Ltd., Australasia Bank Ltd. And Standard Bank Ltd. Which
operated in the then Pakistan on March 26, 1972 under the Bangladesh Banks (Nationalization)
order 1972 (P.O. NO. 26 of 1972), with all their assets, benefits, rights, powers, authorities,
privileges, liabilities, borrowings and obligations. Rupali Bank worked as a nationalized
commercial Bank till December13, 1986. Rupali Bank Ltd. Emerged as the largest Public
Limited Banking Company of the country on December 14, 1986.
Number of Branches::
Rupali Bank operates through 572 branches. It is linked to its foreign correspondents all over the world.
Number of Employees::
Chief Executive::
The Bank is headed by the Managing Director (Chief executive) who is a reputed professional Banker.
Vision
10
Our Vision is to expand our loyal customer base by being known as the financial partner of
choice that constantly exceeds customer expectations.
Mission
Core Values
Develop a customer oriented service culture with special emphasis on customer care
and convenience.
Increase our market share by following a disciplined growth strategy.
Achieve a significant share of deposit and credits from the existing and niche markets.
Leverage our technology platform and pen scalable systems to achieve cost-effective
operations, efficient MIS, improved delivery capability and high service standards.
Develop innovative products and services that attract our targeted customers and
market segments.
Maintain a high quality assets portfolio to achieve strong and Sustainable returns and
to continuously build shareholders’ value.
Strengthen the bank’s brand recognition.
Explore new avenues for growth and profitability, particularly by diversifying loan
portfolio through structured finance and expansion of retail and SME financing.
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Strengthen the bank’s brand recognition.
Corporate Profile
12
Legal Advisor : S.M Atikur Rahman, Barister-at-Law,
Suite- D (1st Floor), 105/A Kakrail Road,
Dhaka, Bangladesh.
Tax Consultant : K.M HASAN & CO. Chartered Accountants,
Hometown Apartment (8th & 9th Floor),
87, New Eskarton Road, Dhaka-1000, Bangladesh.
Number of Employees : 5490
Number of Branches : 572
Number of Subsidiary : 01 (Rupali Investment Limited)
Companies
Phone-PABX : +88-02-9551624-25, +88-02-9551525,
+88-02-9551840, +88-02-9552184,
+88-02-9552214, +88-02-9552746,
+88-02-955093-4
Fax : +88-02-9564148, +88-02-9552671
SWIFT BIC : RUPBBDDH
Website : www.rupalibank.org
E-mail : info@rupalibank.org, it@rupalibank.org
Organization Structure:
13
Hierarchy of Rupali Bank Ltd
14
Product & Services of RBL
15
SBA FDR
SND RMES
RSSA RMSS
RMPS ATM
16
In order to fulfill the requirement of the Internship program it has chosen Rupali Bank Ltd,
Human Resource Division (HRD) of Rupali Bank Ltd placed me to Monohorpor Corporate
Branch at Comilla. The overall topic of the report has been selected by discussion between me
and course instructor .The topic of my report is “the evaluation of financial performance of
Rupali Bank Ltd”.
Primary objective:
Secondary Objective:
To know the banking sector of Bangladesh.
To understand and analyze the overall activities of Rupali Bank.
To give suggestion the ways and means for improvement in policy and techniques.
17
Chapter – Two
Literature Review
18
Performance Evaluation is defined as a formal and productive procedure to measure an
employee’s work and results based on their job responsibilities. It is used to gauge the
amount of value added by an employee in terms of increased business revenue, in
comparison to industry standards and overall employee return on investment (ROI).
All organizations that have learned the art of “winning from within” by focusing inward
towards their employees rely on a systematic performance evaluation process to regularly
measure and evaluate employee performance. Ideally, employees are graded annually on
their work anniversaries on the basis of which, they are either promoted or suitable
distribution of salary raises. Performance evaluation also plays a direct role in providing
periodic feedback to employees, such that they are more self-aware in terms of their own
performance metrics.
The traditional performance rankings of banks are based on simple and consistent factors
such as financial returns, Returns on Asset (ROA) and Returns on Earning (ROE).
Nevertheless, performance rankings conducted in this way may not precisely illustrate
institutions that embrace strategies for sustaining top performance (Hanley & Suter,
1997). (Gilbert, Meyer, & Vaughan, 2002) suggest used off-site tools are supervisory
screens (financial ratios from periodic balance sheets and income statements) and
econometric models (information from financial ratios). bank performance based on six
major components of bank safety and soundness that are collectively known as CAMELS
(Capital Adequacy, Asset Quality, Management competence, Earning, Liquidity,
Sensitivity to Market Risk) on a scale from 1 (robust) to 5 (very unstable).
Pandey (2006) stated that the easiest way to evaluate the performance of a firm is to
compare its present ratio with the past ratio it gives an indicator of the direction of change
and reflects whether the firm is to compare its present ratio with the past ratio. it gives an
indicator of the direction of change and reflects whether the firm’s financial performance
has improved. deteriorated or remained constant over firm.
Chowdhury and ahmed (2009) observed that all the selected private commercial banks
are able to achieve a stable growth of branches employee, deposit, loans and advances,
net income earning per earning per share during the period of 2002-2006. They indicate
that the project of private commercial banks in Bangladesh is very bright.
Chowdhury (2002) observed that the banking industry of Bangladesh is a mixed one
comprising nationalized. Private and foreign banks. Many efforts have been made to
explain the performance of these banks. Understanding the performance of the bank
requires knowledge about the profitability and the relationship between variables like
market size, banks risk and banks risk and banks market size with the profitability.
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Khan (2008) stated that bank is evaluated based on profit and loss as the same way for
other business. if the shareholders of the bank get more profit then the bank is identified
as successful. Banks can attain success if relevant risks are effectively controlled.
Van Home & Wachowicz (2005) stated that to evaluate a firms financial condition and
performance the financial analyst need to perform “checkups” on various aspects of a
firms financial health. A tool frequently used these checkup is financial ratio.
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CHAPTER – Three
21
Introduction
It is most important side of the bank. Bank is nothing but a middleman between lenders
(surplus unit) and borrowers (deficit unit). To provide loan, a bank needs a huge amount of
money from the depositors. General banking is the side where banks offer different
alternatives to the clients to deposit and remit their money. To encourage the clients, bank
offers different options in front of their clients. Most of these options are very much similar
between the banks, but the customer services and facilities may not be the same. Every
Branch of Every Bank has to maintain the General Banking department. It takes Care of lot of
important banking activities mainly collecting the deposits from customers.
General Banking
Section
The relationship between the banker and the customer begins with the opening of an account by
the customer. Initially all the accounts are opened with a deposit money by the customer and
hence these accounts are called deposit account. Usually a person needs to open an account to
take services from it. Without opening an account, one can get only a few services from the
bank. So the banking begins actually by the opening of an account with a bank.
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Application on the prescribed form
The person willing to open a current account with the bank has to make application in the
prescribed form. This form must be properly filled up and signed by the applicants.
Specimen signature
Every customer is required to supply to his banker with one or more specimens of his/ her
signature. These signatures are taken on cards, which are preserved by the banker, and his
signature of the account holder on the cheques is compared with the Specimen signatures.
Cheque Book
To facilitate withdrawals and payments to their parties by the customer, the bank will also
provide a cheque book to the customer. But it is noted that to get a cheque book, the customer
has to dully fill up the cheque requisition slip to the banker.
2.2.2 Formalities maintained for closing an account
23
The customer may inform the bank in writing of his/ her intension to close the
account.
The customer has to apply to the branch in charge for closing the account. Then
the in charge will remark on the account closing application for closing the
account.
By drawing a cheque of the whole amount and a nil balance confirmation to be
taken from the account holder.
Recover the unused cheque leaves and enter into the “Broken cheque book
register”
Remove the account opening form, specimen signature card and all other papers
relating to the closed account.
Remarks of account closing at the ledger folio should be authenticated by the
manage or supervising officials.
The banker may itself ask the customer to close the account when the banker finds
that the account is not been operated for a long lime.
It the account is not operated upon for 6 months then the banker will try to do the
bilateral communication with the account holder. But if the banker does not get
any response from the account holder then the account becomes “dormant”
account.
If the is not the operated upon for 2 years then the account becomes “inoperative”
account.
A new register for unclaimed deposit account will be maintained called
“unclaimed deposit account”.
For withdrawal at any amount from that account, permission from head office or
controlling office wins is required.
Current Account
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Current account is purely demand deposit account because the bank is bound to pay the amount
to the account holder on demand at any time. It is running and active account, which may be
operated upon any number of times during a working day. There is no restriction on the number
and the amount of withdrawals from a current account. The special characteristics of a current
account are as follows:
The primary objective of is to serve big customers such as businessmen, joint
stock companies, private limited companies, public limited companies etc. from the
risk of handling cash by themselves.
The cost of providing current account facilities is considerable to the bank since
they undertake to make payments and collects the bills, drafts, cheques for any
number of times in a particular day. The bank therefore does not pay any interest
on current deposit while on the other hand some banks charge for incidental
charges on such account.
For opening of a current account minimum deposit of taka 1000/= is required.
Introductory reference is also required for opening of such account.
These are the deposits, which are made with the bank for fixed period specified in advance. It
is purely a time deposit account. The bank doesn’t maintain cash reserves against these
deposits and therefore the bank offers higher rates of interest on such deposits. At present the
rate of interest for fixed deposit Receipt (FDR) in the Rupali Bank Limited is –
Savings Account
25
A savings account is meant for the people of the lower and middle classes who wish to save a
part of their incomes to meet their future need and intend to earn an income from their
savings. It aims to encouraging savings of non-trading persons, institutions, society and clubs
etc. by depositing small amount of money in the bank. Both the elements of time and demand
deposit are present in this account. At present the rate of interest for Saving Account (SB) in
the Rupali Bank Limited is–5.00%
Savings schemes
To attract depositors and encourage saving Rupali Bank Limited introduced various schemes.
Monthly Savings Scheme
Objectives
Building the habit of savings
Attract small savers
Saving for rainy days
Ensure regular income flow
Mode
Monthly installments of various sizes for a Fixed deposit
Benefits
Lump sum returns after various terms of period
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Monthly Benefit Scheme
Objectives
Mode
Deposit a fixed amount of money, say tk. 50000 or it’s multiply for five years.
Benefits
A fixed amount of money in every month for five years.
Mode
Deposit a fixed amount of money, say tk. 50000 or it’s multiply for 9 year
Benefits
After seven years deposited amount will be double.
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INTEREST RATE:
28
DAILY TASK:
The routine daily tasks of the Accounts Department are as follows, -
Recording the transactions in the cashbook.
Recording the transactions in general and subsidiary ledger.
Preparing the daily position of the branch comprising of deposit and cash.
Preparing the daily Statement of Affairs showing all the assets and liability of the
branch as per General Ledger and Subsidiary Ledger separately.
Making payment of all the expenses of the branch.
Recording inter branch fund transfer and providing accounting treatment in this regard.
Checking whether all the vouchers are correctly passed to ensure the conformity with
the „Activity Report‟; if otherwise making it correct by calling the respective official to
rectify the voucher.
Recording of the vouchers in the Voucher Register.
Packing of the correct vouchers according to the debit voucher and the credit voucher.
PERIODIC TASK:
Preparing the monthly salary statements for the employees.
Publishing the basic data of the branch.
Preparing the weekly position for the branch which is sent to the Head Office to maintain
Cash Reserve Requirement (C.R.R)
Preparing the monthly position for the branch which is sent to the Head Office to
maintain Statutory Liquidity Requirement (S.L.R)
Preparing the weekly position for the branch comprising of the breakup of sector wise
deposit, credit etc.
Preparing the weekly position for the branch comprising of denomination wise statement
of cash in tills.
Preparing the budget for the branch by fixing the target regarding profit and deposit so as
to take necessary steps to generate and mobilize deposit.
Preparing an Extract‟ which is a summary of all the transactions of the Head Office
account with the branch to reconcile all the transactions held among the accounts of all
the branches.
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2.6 REMITTANCE & LOAN:
2.6.1 TYPES OF LOAN AND ADVANCES:
The bank’s Loans & Advances portfolio also indicates an impressive growth. The growth rate of
RBL,
Mainly two types of Loans
I Funded (Demand or consumer loan)
II. Non funded (L/C, Bank Guarantee, Tender etc.)
A lot of types of Funded Loans and Advances are available in The Branch of the Rupali Bank.
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b) General
c) Staff
1. Lease Finance
2. Loan Sanction for the Client
Process is following
Application for by Client in rough format than built-in format
Received
Verification (Normal than physical)
For heavy Loan, Branch has to submit CIB and Proposal to Head Office and Bangladesh Bank
for permission
Approved loan application/ Reject the proposal
Collect security
Give new account and permission to withdraw the loan money.
Loans & Advances is permitted on the Basis of-
Lien
Mortgage
LIEN:
Lien is permitted against the Following
DPS= Deposit Pension Scheme
FDR= Fixed Deposit Receipt
PSE= Protirakha Sanchoy Patra
Lien (VALUE) must be higher than the value of Loans. 80% of Lien documents (VALUE) is
permitted for the Loans & Advances. The position of Lien Documents must be under the hand
of Bank.
Here, Interest Rate of Loans: 14%
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Mortgage:
Land
Building
Shop
Mortgage value must be higher than the value of Loans. 50% of Mortgage Documents (value)
is permitted for the Loans & Advances. The position of Mortgage Documents need not to be
under the hand of Bank only legal papers are necessary to be under the hand of Bank.
Here, Interest Rate of Loans: 13%
To get Loans & Advance for the individual client against DPS (Deposit Pension
Scheme), FDR (Fixed Deposit Receipt), MBDR (Monthly Benefit Deposit Receipt),
DBDR (Double Benefit Deposit Receipt), PSP (Protirakha Sanchoy Patra) etc in favor
3rd party the papers followings are needed-
Letter of Agreement
Letter of Authority
Demand Promissory Note
Balance Confirmation Slip
Letter of Lien and authority for advances of third party’s against Fixed Deposits/
Call Deposits/ Special Deposits or Margin Deposits
Letter of Continuity
Memorandum of Deposit of Securities
2.6.2 FORGIN EXCHANGE
In any international trade the buyers and sellers are of different countries. None of them know
each other nor about their business integrity and credit worthiness. Various regulations
prevailing in their respective countries about foreign trade are also unknown to them. Thus, the
buyer wants to be assured of goods and the seller to be assured of payment. In such a situation
commercial Banks assure these things simultaneously by opening Letter of Credit guaranteeing
payment to seller and goods to buyers. By opening Letter of Credit on behalf of a buyer and in
favor of a seller, Commercial banks undertake to made payment to a seller subject to
32
submission of documents drawn in strict compliance with the terms of the Letter of Credit
giving title to goods to the buyer.
International trade constitutes the main stream of business activities of Rupali Bank Limited.
We offer a full range of finance and services namely, issue, advice and conformation of
documentary credit; offering and arranging forward exchange rate, pre shipment and post-
shipment finance, negotiation and purchase of export bills, discounting bill of exchange,
collection of bills, inward and outward remittance etc.
Main task of the department-
Import Business
Export Business
Foreign Correspondents
Functions of Foreign Exchange
Letter of Credit (L/C) is opened here.
Foreign Pay Order
Prepare statement and report for Head Office and Bangladesh Bank.
Exchange foreign currency
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Back to Back L/C\
Request letter
Importer writes a request letter to the bank to open a L/C
Proforma invoice
The beneficiary gave this document, and the importer accepted that, in this document have the
rate of the goods, total amount, and quantity of the goods which quantity was import, the
quantity was fixed in this invoice because before given this document to the importer they are
negotiate between them.
LCAF
34
Means Letter of Credit authorization form, In this Form importer must signed and in this form
importer IRC number must have.
IMP form
This form was use because every end of month bank submits some statement to the Bangladesh
Bank, and the statement was given in this form. This form importer must sign.
Insurance cover note:
Before opening L/C importer must submit the insurance cover note with cash money receipt to
the bank, without insurance cover note, bank can not open any L/C.
2.6.3 REMITTANCE:
Sending money from one place to other places for the customer’s in another important service
of banks and this service is an important part of countries payment system. For this service,
people specially businessmen transfer funds from one place to another very quickly. There are
various types of remitting money, such as:
35
3. Telegraphic or Telephonic Transfer (TT)
This method transfers money to one place to another place by telegraphic message. The
sender branch will request another branch to pay required money to the required payee on
demand. Generally for such kind of transfer payee should have account with the paying bank.
Otherwise it is very difficult for the paying bank to recognize the exact payee.
When sending money is urgent then the bank uses telephone for remittance. This service is
only provided for valued customers, who is very reliable and with which banks have long
standing relationship.
4. Mail Transfer Advice (MTA)
Where the remitter desires the banker to remit the funds to the payee instead of purchasing a
draft himself the banker does it through a mail transfer advice. The payee must have an
account with the paying office as the amount remitted in such a manner is meant for credit to
the payee’s account and not for cash payment. It is the least used technique for transferring
fund. Where there is no telex machine or telephone line then this method is used.
36
CHAPTER – FOUR
METHODOLOGY
37
Every research program should follow some basic form of procedures. I studied various books &
articles of different writers regarding the topic. However mainly this report is written on the basis
of experience gathered during the period of Internship.
In order to make the report more meaningful and presentable, two sources of data and
information have been used widely. Both primary and secondary data have been used to prepare
the report
38
4.3 Analysis of data
The dataset covers the information of Rupali bank Limited over the five-year period 2014 to
2019. The six year period covered the information on advertising, promotion, salary structure
etc. It also includes the performance measure ratios like ROE, ROA, and Assets etc.
There are some steps in this data processing process and those are given below.
Collection: Firstly I have collected all required data from different kinds of sources like
website, discussion etc.
Preparation: Then I have prepared suitable data for further analysis and processing.
Classification: After preparation then I have classified data based on their category.
Cross Check: After making classification I made the cross check for data accuracy.
Validity check: Then I have checked the validity of the given data.
Final selection: After validated then I have selected the data for the final use in my report.
39
CHAPTER – FIVE
RATIO ANALYSIS
Ratio Analysis
40
Ratio analysis involves methods of calculating and interpreting financial ratios to assess
the bank’s performance and status. The basic inputs to ratio analysis are the bank’s
income statement and balance sheet. Various devices are used in the analysis of financial
statement data to bring out the comparative and relative significance of the financial
information presented includes ratio analysis, comparative analysis, percentage analysis
and examination of related data.
1. 1. It is compared with other ratios in the same set of financial statements.
2. 2. It is compared with the same ratio in previous financial statements (trend
analysis).
3. 3. It is compared with a standard of performance (industry average).Such a
standard may be either the ratio which represents the typical performance of the
trade or industry, or the ratio which represents the target set by management as
desirable for the business.
Ratio Analysis
Liquidity Ratio
Liquidity ratio measures of the enterprise’s short- run ability to pay its maturing
obligations.
1. a. Current Ratio
The current ratio, one of the most commonly cited financial ratios, measures the firm’s
ability to meet its short term obligations. The higher the current ratio, the better the
liquidity position of the firm. It is expressed as:
41
Source: Annual Report of RBL (, 2018, 2017, 2016, 2015,2014)
Graphical Presentation:
Interpretation:
Generally, the higher the current ratio, the more liquid the firm is considered to be. In
2016, RBL was maintaining 1.46 tk. current assets against 1 tk. current liability but in
2018 its current assets decreased in 0.79 tk. whereas normally banking industry maintains
1: 1 current ratio. This graph shows that, RBL current ratio fluctuated from 2016 to 2018.
The proportion of investment that is requires to conduct the business is called working
capital. It is the blood of the firm. Net working capital is the difference between the
firm’s current assets and its current liabilities. Net working capital, although not actually
a ratio is a common measure of a firm’s overall liquidity a measure of liquidity ratio
calculated by
Interpretation:
Working capital is blood for every firm because without working capital a firm can not
run its daily activities perfectly. From above figure it has been that, from the year of 2014
to 2018 its been seen that the working capital of rupali bank is increasing gradually.
which is a good sign for the bank.
Debt Ratio
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Debt ratio measures of the degree of protection for long- term creditors and investors.
1. a. Debt Ratio
The debt ratio measures the preparation of total assets provided by the firm’s creditors. It
also helps to measure the risk because debt consists of a fixed commitment in the form of
interest and principal repayments.
Interpretation:
The Debt ratio measures the proportion of total assets provides by the firm’s creditors. So
lower the ratio, considered less risky. And from the year of 2014 to 2018 it’s increasing
every year and in 2018 its higher then ever. Its mean that the bank is higher dependable to
loans and creditors
This ratio assesses the firm’s capital structure. It provides a measure of risk to creditors
by considering the funds invested by creditors (debt) and investors (equity). The higher
percentage of debt is greater the degree of risk to any creditor.
Interpretation:
43
From above graph it can be realized that, RBL’s debt to equity ratio was increasing from
the year 2015 to 2018 which indicates the higher percentage of debt is higher degree of
risk of the bank.
Times interest earned ratio measures the firm’s ability to make contractual interest to
make contractual interest payments; sometimes called the interest coverage ratio.
Time Interest Earned Ratio =Earnings before Interest & Taxes / Interest
Interpretation:
This figure shows that, RBL’s time interest earning ratio was increasing year by year that
means bank’s interest payment capacity were gradually increasing. It is a good sign for a
bank.
Profitability Ratio
Return on asset (ROA), which is often called the firms return on total assets, measures
the overall effectiveness of management in generating profits with its available assets.
The higher ratio is better.
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Source: Annual Report of RBL ( 2018, 2017, 2016, 2015,2014)
Interpretation:
In this figure it has been that, from 2014 to 2018 the return on asset is increasing day by
day which is good for the bank. as they are making a good profit.
1. c. Return on Equity(ROE)
The return on equity measures the return earned on the owner’s (both preferred and
common stockholders’) investment. Generally the higher the return, the better off the
owner’s.
Interpretation:
From the year of 2015 to 2018 the return on equity is decreasing by the years which was
not desirable. So the management should work hard to increase the return associated with
equity.
Interpretation:
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Investment to deposit ratio shows that which amount of deposit is used to as investment.
From this graph it has been that, RBL‘s investment to deposit ratio was increasing
between 2014 and 2015 that means RBL depends on deposits than the share capital. But
RBL’s investment silently decreased in 2016 to 2018, it is not good for a bank.
The Earning per share represent the number of dollars earned on behalf of each
outstanding share of common stock.
Interpretation:
The firm’s earning per share is generally of interest to present or prospective stockholders
and management. As we noted earlier, the number of taka earned during the period on
behalf of each outstanding share of common stock. The graph shows that from the year
2017 to 2018 the earning per share is decreeing gradually. It indicates bed sign for the
bank, which can’t attract investor. To attract the investor RBL should to increase its EPS
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The price or earning (P/E) ratio is commonly used to assess the owners’ appraisal of
share value. The P/E represents the amount investors are willing to pay for each dollar of
the firm’s earnings. The higher the P/E ratio, the greater the investor confidence in the
firm’s future. The price Earning (P/E) ratio is calculated as follows:
Price /Earnings Ratio=Market Price per Share of Common Stock / Earning Per
Share
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Chapter – Six
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While preparing the entire report I came across some important findings mostly related
to the rupali Bank Ltd Monohorpor corporate Branch, Cumilla. These are mostly based
on the deposits products collection.
RMSS is one of the most popular schemes in Rupali Bank monohorpur corporate
Branch. Almost 40% of the customers prefer the RMSS scheme. The main reason
behind this may be a huge portion of the customers belong to the middle class. So
from their incomes of every month they choose this scheme to save on a regular
basis.
There are some least active product schemes such as RSSA and current account.
The main reason behind it could be the lacking of advertising. Therefore, the target
customers do not even get to know about these schemes.
There is always a circular of an updated version of the interest rates of each
scheme is published on the websites after a certain period of time and the
employees make it printed for the customers so that they can always keep
themselves up to date with the latest interest rates an time period.
I have noticed a common issue with a lot of customers that they do not get the
SMS alert of their account balance although the SMS alert service is on. From the
general perspective it seems like there must be a technical problem probably with
the software as they do not get the SMS.
ATM is one of the service offered by Rupali Bank Ltd. however, there is not
enough ATM booth in every branch of the bank. In fact, the customers can use
other bank’s ATM. But there should be ATM booths in more branches of Rupali
Bank Ltd.
Having a previous settlement account is mandatory to open most of the product
scheme account. Therefore, if any person who is interested to purchase these
product schemes will be unable to do it.
The bank credit system in this bank is more easy and flexible from others banks I
think
After the Ratio Analysis it shows that the overall banking financial performance is
slowly increasing every year.
6.2 RECOMMENDATIONS:
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After analyzing the data and observing the functions of the bank there are some
recommendation given in order to improve the function and for keep assuring better
services. These recommendations are also based on the findings so that the top
management can ensure to get the competitive advantages and modify the services.
Doing Promotional Activities: Rupali Bank Limited does not pay attention to
advertising and promotional activities. Therefore, it lacks in promoting the deposits
collection products and other services. So the people remain unaware about these
schemes. The bank should ensure to make promotional activities regarding their
products and services and focus on their marketing and advertising department.
Doing Proper Research: Rupali Bank Limited should do more research on the current
market situation and other banks products so that they keep themselves up to date in
the business. Also they should do regular research by doing survey among the
customers regarding what kinds of deposits products and facilities they are looking
for, so that they can hold on to the maximum customers.
ATM Booths: ATM is one of the important product and service offered by Rupali
Bank Ltd. But as there is not ATM booths in all the branches the customer sometimes
needed to go to the other bank’s ATM. So Rupali Bank Limited should have more
satisfying number of ATM booths for the customer welfare.
Simplify Account Forms: The account opening form for any kind of deposits scheme
is very informative and it takes a long time to fill it up. The form should be more
simplified and precise in order to shorten the time.
Networking: Rupali Bank Limited already has a good and expanded networking
system all over the country. It has 565 branches. Therefore, the bank should take the
opportunity and utilize the networking to establish the image as one of the most
reliable banks in the country.
Transparency: The bank needs to ensure the transparency for its deposits products
scheme circulars and also make the rules transparent to the customers. Branch
location: The branch location is an important thing of consideration as the pursuer of
the deposit products are the target of the bank to hold more transactions. The
preference of the deposit products scheme varies from one place to other place. So
based on that thee bank must be prepared.
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Improvement of Online Banking: Rupali Bank Limited should improve the online
banking transactions and other electronic banking processes. The IT department
should improve the software so that it can function more effectively
Training: The new employees should be sent to the training programs more often so
that they can achieve maximum knowledge and skills to give their best performance
in the bank. The senior employees should also receive proper training regarding the
online banking as it has been recently introduced in Rupali Bank Limited.
Recruitment of more Skilled Employees: Along with the progress of the bank it needs
more skilled human resources to run all the activities properly. So, Rupali Bank
Limited requires more skilled employees to deal with the daily activities as it has to
maintain a huge customer load.
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CONCLUSION:
The banks and other financial institutions have become exceedingly crucial as the
country’s economic development progress. Rupali Bank Ltd. is one of the most potential
banks in our country. The bank has an expanded portfolio along with its huge assets to
face any uncertainty. RBL is able to quickly adapt with the sudden change of the
environment. For instance, recently, RBL has adapted the online banking and
computerized system within a very short period of time. Moving on to the project topic,
the deposits product schemes have a major influence on Rupali Bank Ltd. Therefore,
RBL should give more effort to improve its deposits product schemes. RBL has no
marketing or promotion policies. It is really causing lacking to this section. The bank
must step forward to create a strong image by promoting their offered deposits product
schemes. They should upgrade their policies and facilities related to deposits collection
products. In addition to that they can hire some experts who can advise about the
products to achieve the target. An effective team should be formed with a perfect
combination of skilled and experienced employees to do research over the deposit
collection products and monitor the performance and the contribution of these deposits
product schemes in the overall business. Rupali Bank Ltd. is strongly positioned in the
banking sector of Bangladesh. The employees of Rupali Bank Limited have been
working tremendously for achieving its goals and vision. The core values of the bank can
make it to stand on the expectations along with raising the assets more in future through
ethical banking and its implementing. when speaking to increase and evaluate overall
performance the Bank should more careful when providing loan as the credit sector is
very poor to get the loan with interest back also they should provide more employees to
every branch so that the branches performance don’t go down.
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Reference:
(Ratio Analysis)
Financial Annual report from 2014 to 2018 ( Hard Copy )
( Literature, Company profiles, secondary source)
https://www.assignmentpoint.com/business/finance/financial-performance-
evaluation-of-rupali-bank-limited.html
http://archive.saulibrary.edu.bd:8080/xmlui/bitstream/handle/123456789/1843/08
-03108.pdf?sequence=1&isAllowed=y
https://www.slideshare.net/Jakiobaid/internship-report-on-rupali-bank-limited-by-
jaki-comilla-corporate-branch
https://www.isahp.org/uploads/p729373.pdf
http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/12226/15104199_BBA.p
df?sequence=1&isAllowed=y
https://www.wsj.com/market-data/quotes/BD/XDHA/RUPALIBANK/company-
people
https://www.rupalibank.org/about_display_bank_glance.php?type=1
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