Comprehensive Report on Dutch-Bangla Bank Ltd.

, IFIC Bank Ltd

& Premiere Bank Ltd.: Comparative and Time-series Analysis &
Impact of COVID-19 on their Performance

Submitted by:
Tahsin Anan -17104074
Anindita Hassan - 16304058
Stella Scholastica Crowley - 17104245
Monira Akter Mim - 16204035

Submitted To: Muhammad Mujibul Haque, Professor & Associate Dean, BRAC Business
School, BRAC University.
 Executive Summary

This report has been created in order to assess and inspect the operative methods and
performances of the selected banks. Upon specific inspection of the financial information of the
selected banking organizations for the recent three-year period, time-series and comparative
analysis among the banks have been performed. CAMELS rating analysis has been conducted on
the derived financial ratios for the purpose of analyzing total fitness of each individual banks
and compare among them. The descriptive and mathematical analysis has reported two different
method of banking operations; risk averse and risk taking. While the former allows the
organization to operate safely at a low profitability but the latter reveals various opportunities
of increasing business and profitability if operated with steer efficiency.

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 Table of Contents

Executive Summary------------------------------------------------------------------------------------------2

I. Introduction----------------------------------------------------------------------------------------------4

II. Findings & Analysis------------------------------------------------------------------------------------5

II.1 Major Products & Services--------------------------------------------------------------------------5

II.2 Sources & Uses of Funds----------------------------------------------------------------------------5

II.3 Financial Performance Analysis & Findings------------------------------------------------------5

II.4 Major Regulations------------------------------------------------------------------------------------8

II.5 Impacts of COVID-19 Crisis------------------------------------------------------------------------8

III. Summary & Conclusions----------------------------------------------------------------------------9

References----------------------------------------------------------------------------------------------------10

Appendix------------------------------------------------------------------------------------------------------11

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 I. Introduction

The banking sector of Bangladesh has broadened largely in the past three decades with a view to
including the poor and rural people financially through microfinance, micro-credit policies and
other innovative tools such as online, mobile and agent banking (Mahmood, 2019). However,
lack of proper management and accountability has made the expanded banking industry
vulnerable over the years. Mahmood also stated that greed and use of banks as an illegal method
of gathering wealth has disrupted banking performance severely and inability to bring the willful
defaulters under strict legal action has spectacularly increased the size of non-performing loans
of the industry. As a result, the banking industry of Bangladesh is currently suffering from a
serious liquidity crisis which has been intensified further by the global economic arrest due to the
effect of on-going COVID-19 pandemic. A survey conducted by the Bangladesh Capital Market
Sentiment Survey 2020 has found that the banking industry is considered one of the biggest risks
to the Bangladesh economy (Babu, 2020).
The objective of this study is to learn about the operational activities of banks in details. The aim
is to gain proper understanding of the way banks operate and acquire knowledge of their offered
products and services, major on and off-balance sheet activities. In order to understand the
current condition of banks, information regarding operational and financial performance for
various banks are gathered. The focus is to learn about the banks’ current stance in terms of risk
and return through in-depth analyzing of those information. Through the comparative analysis of
before COVID-19 pandemic and current performance information, this paper has intended to
find out the severity of the impact of the pandemic on the banking industry. It aspires to discover
the elasticity of the industry, to observe how much of the banking activities has been affected
due to the global pandemic. This paper also aims to prepare a comprehensive report on the few
selected banks with a detailed and comparative analysis of their operational and financial
performances.
For the preparation of this study, three commercial banks of Bangladesh were selected. The
Dutch-Bangla Bank Ltd. (DBBL), International Finance Investment and Commerce (IFIC) Bank
Ltd. and the Premiere Bank Ltd. (PBL), all of which are enlisted in the Dhaka Stock Exchange
(DSE) market. The operational and financial information for the recent three years (2017, 2018
& 2019) of these banks were analyzed for the purpose of speculating the industry trend in terms
of risk and return aspects. The analysis mainly focused on the products and services offered by
the banks, their various sources and uses of funds including the off-balance sheet and fee-based
income activities. The comparison among the results of these three banks will give a glimpse into
the industry condition.
The operational and financial information of the banks was collected from the audited annual
reports for latest consecutive three years. The portfolio of the annual reports provided major
operational information. Information regarding bank financials and sources and uses of funds
were collected from the audited financial statements (balance sheets, profit and loss statements
and financial notes) attached in the annual reports. Quarterly interim financial statements for first
6 (six) months of 2019 and 2020 were used as source for the before pandemic and current
financial stance of the banks. Annual reports of all three banks for three years and the interim
financial statements were collected from the respective banks’ official websites. Stock market

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related information for the selected banks were collected from the DSE website and another
investment related website. Further information regarding banking industry were gathered from
various articles of authentic online news portals. The paper has mainly analyzed through
comparison among the three banks in all aspects. Moreover, time-series or trend analysis was
conducted for all three banks while comparing among themselves has provided an overall view
of both the industry and bank condition.
Nevertheless, the paper has not reached its desired potential due to some limitations. To begin,
all essential authentic information regarding the banks’ operations and performance were not
available, especially some financial information. Inconsistency of a particular bank’s financial
information in annual reports for different years caused rather confusion and hindered proper
analysis. Also, as it was a group project, it was quite difficult to work together only on the virtual
basis, without being together physically and discuss more effectively. The time constraint due to
the shortened timeline of the virtual learning has also impacted the quality of this paper.
This study has intended to create a over all report of the activities and financial performance of
banking industry by comparing the information over time and among banks. This will provide a
good understanding of the banking organizations and the industry as well for the academics and
students. Stakeholders of the selected banks may also be benefitted, especially through the
financial analysis part of the paper. Further research is suggested to increase the numbers of
years and banking organizations to observe a more accurate scenario. Authentic and generic
preparation of annual reports according to standard rules are also suggested for the banking
organizations.

II. Findings & Analysis

II.1 Major Products & Services

DBBL
 Electronic Banking: utility payment, access to account, remittance and toll management
 Retail loans and deposit schemes
 Dealing Rocket through ATMs as well
 SME term loans on various specifications
 Corporate banking
 Cards Product: NEXUS PRO, Debit cards
IFIC Bank
 Personal banking: Fixed deposits, retail loans, student files, debit & credit cards and other
specialized deposit products
 Corporate banking: SME & Agri, Corporate, Treasury, securities related products
 Other services: SMS banking, Sanchyapatra, Locker service, remittance service, NRB
accounts etc.
Premiere Bank

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  Retail banking: Current and saving accounts, fixed & term deposits, personal & home
loans, student banking
 Corporate banking: Term financing, working capital loans and cash management services
 SME banking: Term loans, working capital, women entrepreneurship loans
 Islamic banking: Mudraba accounts, term deposits and investment products
 Others: Credit, Debit & prepaid cards, securities

II.2 Sources & Uses of Funds

IFIC BANK
The bank account strategy is securing assets Uses of funds:
from the accompanying sources:
 Stores of record holders.  Investments: Government
securities, mutual funds, quoted
shares of different companies,
foreign and maturity grouping
investments
 Enthusiasm on advances and advances  Loans & Advances: Various
allowed to the borrowers. attractive loan schemes for
personal, corporate and SME
banking.
 Salary and commission from the
administrations gave by the bank.
 Bank opens different sorts of records for
its client's Services are accommodated
winning.
 Premium pay and commission bank
offering the types of assistance to its
client.
Premier Bank
Premier Banks sources of funds are given Uses of funds:
below
 Paid up share capital:  Investments: Government securities
& treasury bonds, quoted shares of
different companies
 Reserve fund and undistributed profits:  Loans & Advances: Various
attractive loan schemes for
personal, corporate, Islamic and
SME banking.
 Deposits from the public in various
accounts:
 Borrowings from the Bangladesh Bank
and other banks

Dutch Bangla Bank Limited

Dutch Bangla Bank rely on the following Uses of funds:

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sources of funds:
 Capital & Equity;  Investments: Government securities
& prize bonds, subordinated bonds,
quoted shares of different
companies
 Transaction deposits that are risk free  Loans & Advances: Various
and yield no return; and attractive loan schemes for
personal, corporate and SME
banking.
 Investment deposits that carry the risks
of capital loss for the promise of variable
returns.

II.3 Financial Performance Analysis & Findings

The financial performances of the selected banks are analyzed in this section by calculating
relevant accounting and financial ratios which are categorized on the basis of measurement
of risk and return for each bank with comparative and time-series analysis. Moreover, with
the derived ratios, a CAMEL rating analysis has been conducted to test the over all
soundness of the banks on a comparative basis.
RISK-BASED FINANCIAL RATIOS:
Capital Risk-weighted Adequacy Ratio:
BANKS/YEAR 2019 2018 2017
DBBL 15.53% 15.62% 14.49%
IFIC 12.80% 12.63% 12.57%
PBL 12.61% 12.27% 12.12%

Capital Risk-weighted Adequacy Ratio

18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2019 2018 2017

DBBL IFIC PBL

Interpretation: In 2019, 15.53% CRAR for DBBL means that the bank has Tk. 15.53 worth
of capital against every 100 risk weighted assets. The time-series analysis shows that the
ratio for all three banks has been quite stable over time. All three banks have been

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 maintaining the ratio above the required level by BASEL III. Comparison among banks
shows that DBBL has been maintained the highest among the three banks.

CET1 Ratio:
BANKS/YEAR 2019 2018 2017
DBBL 10.29% 9.29% 9.21%
IFIC 10.28% 9.80% 9.84%
PBL 8.59% 7.92% 7.85%

CET1 Ratio
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2019 2018 2017

DBBL IFIC PBL

Interpretation: In 2019, 10.29% CRAR for DBBL means that the bank has Tk. 10.29 worth
of common equity Tier-1 capital against every 100 risk weighted assets. The time-series
analysis shows that the ratio for all three banks has been quite stable with a slight inclining
rate over time. All three banks have been maintaining the ratio above the required level by
BASEL III. Comparison among banks shows that IFIC has been maintained the highest
among the three banks followed closely by DBBL in past years and in 2019, both the banks
reached the same high level.

Cost-Income Ratio:
BANKS/YEAR 2019 2018 2017
DBBL 58.71% 68.80% 69.99%
IFIC 53.95% 56.73% 54.78%
PBL 43.50% 45.44% 50.18%

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 Cost-Income Ratio
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2019 2018 2017

DBBL IFIC PBL

Interpretation: In 2019, 58.71% Cost-Income ratio for DBBL means that the bank incurred
Tk.0.5871 of operating cost to earn every 1 taka of operating income. The time-series
analysis shows that the ratio for all three banks has been quite stable with a slight declining
rate over time. Comparison among banks shows that PBL is the most cost-efficient bank and
DBBL is the most cost-incurring one.

Debt Leverage Ratios: Debt-Assets and Debt-Equity

BANKS/YEA   2019 2018 2017
R
DBBL Debt- 92.97% 93.34% 93.75%
Assets
Debt- 13.56 16.03 18.86
Equity
IFIC Debt- 91.72% 91.74% 91.39%
Assets
Debt- 0.92 11.10 10.61
Equity
PBL Debt- 92.86% 92.89% 92.79%
Assets
Debt- 13.00 13.06 12.87
Equity

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 Debt Leverage Ratios

0 2 4 6 8 10 12 14 16 18 20

2019 2018 2017

Interpretation: In 2019, 92.97% Debt to Assets ratio for DBBL means that the bank owes Tk.
0.9297 against every taka of assets owned and 13.56 Debt to Equity ratio means the bank
uses Tk. 13.56 for debts of it every taka of equity capital. The time-series analysis shows that
D/A ratio has been quite stable over the years but the D/E ratio has been fluctuating with a
drop in 2018 for all banks, spectacularly for IFIC and has risen again in 2019 which was
much notable for DBBL. Comparison among banks shows that all the banks has maintained
high debt ratios in both aspects which is too risky for especially DBBL and PBL.

Liabilities to Deposits Ratio:

BANKS/YEAR 2019 2018 2017
DBBL 116.90% 120.68% 123.79%
IFIC 113.15% 115.30% 116.24%
PBL 116.22% 118.54% 120.19%

Liabilities to Deposits Ratio

125.00%

120.00%

115.00%

110.00%

105.00%
2019 2018 2017

DBBL IFIC PBL

Interpretation: In 2019, 116.90% Liabilities to Deposits ratio for DBBL means that for every
1 taka of deposits collected, the bank incurred 1.1622 taka of liabilities. The time-series
analysis shows that the ratio for all three banks has been observing stable declining rate over
time. Comparison among banks shows that IFIC has maintained a somewhat satisfactory
level of the ratio but for DBBL and PBL, it is in an unsatisfactory and risky level.

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 Loan-Deposit Ratio:
BANKS/YEAR 2019 2018 2017
DBBL 80.39% 83.08% 84.57%
IFIC 88.47% 91.43% 89.54%
PBL 90.26% 92.63% 96.59%

Loan-Deposit Ratio
120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
2019 2018 2017

DBBL IFIC PBL

Interpretation: In 2019, 80.39% Loan-Deposit ratio for DBBL means that for every 1 taka of
deposits collected, the bank gave out 0.8039 taka for loan. The time-series analysis shows
that the ratio for all three banks has been stable over time albeit a slightly declining.
Comparison among banks shows that all the three banks have maintained a good level of the
ratio.

Provision for Loan Losses Ratio:

BANKS/YEAR 2019 2018 2017
DBBL 3.21% 3.41% 3.58%
IFIC 0.34% 0.39% 1.19%
PBL 5.56% 5.22% 6.13%

Provision for Loan Losses Ratio

7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2019 2018 2017

DBBL IFIC PBL

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 Interpretation: In 2019, 3.21% PLLs to Total Loans for DBBL means that for every 100
loans given, 3.21 number of them were risky enough to be expected to turn out uncollectible.
The time-series analysis shows that the ratio has been somewhat stable for all the banks over
the three years albeit with little fluctuations. Comparison among banks shows that PBL has
been offering high amount of risky loans while DBBL has been moderately risky and IFIC
has operating on a low risk basis.

NPLs to Total Loans:

BANKS/YEAR 2019 2018 2017
DBBL 4.62% 4.39% 4.88%
IFIC 5.37% 6.16% 6.40%
PBL 6.70% 3.99% 4.69%

NPLs to Total Loans

8.00%
6.00%
4.00%
2.00%
0.00%
2019 2018 2017

DBBL IFIC PBL

Interpretation: In 2019, 4.62% NPLs to Total Loans for DBBL means that for every 100
loans given, 4.62 number of them were uncollectible. The time-series analysis shows that the
ratio for both IFIC and DBBL has been stable over time even though DBBL has seen a slight
increase in 2019 while IFIC observed quite a drop in NPL. But PBL had experienced a
significant rise in NPL in 2019. Comparison among banks shows that DBBL and IFIC has
maintained a fair level of the ratio and the ratio for PBL is quite high, making the bank much
vulnerable to liquidity risk.

RETURN -BASED FINANCIAL RATIOS :

Net Interest Margin:
BANKS/YEAR 2019 2018 2017
DBBL 4.62% 4.32% 3.66%
IFIC 2.02% 1.61% 2.17%
PBL 2.45% 2.69% 2.18%

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 Net Interest Margin
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2019 2018 2017

DBBL IFIC PBL

Interpretation: In 2019, 4.62% NIM for DBBL means that every unit of their asset has earned
0.0462 taka of interest income. The time-series analysis shows that the ratio for both IFIC
and PBL has been at the same level together both in 2017 and 2019 although the former had
inclined in 2018 and the latter was decreased. However, DBBL had been quite stable with an
incline trend. Comparison among banks shows that DBBL has maintained a satisfactory level
of the ratio and the ratio for IFIC and PBL is at a fair level over three years.

Returns on Assets (ROA) and Equity (ROE):

BANKS/YEA   2019 2018 2017
R
DBBL ROA 1.08% 1.18% 0.74%
ROE 15.35% 17.66% 11.89%
IFIC ROA 0.77% 0.55% 0.82%
ROE 9.94% 7.10% 10.07%
PBL ROA 1.27% 1.03% 1.05%
ROE 17.94% 14.57% 14.60%

ROA & ROE

0.00% 5.00% 10.00% 15.00% 20.00%

2019 2018 2017

Interpretation: In 2019, 1.08% of ROA for DBBL means that every unit of their assets has
earned Tk.0.0108 of income. 15.35% ROE for DBBL means that every unit of their equity

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 has earned 0.1535 taka of income. The time-series analysis shows that the ratio for both IFIC
and PBL has been dropped in 2018 and excelled nicely in 2019. But DBBL had experienced
an opposite trend. Comparison among banks shows that DBBL and PBL has maintained a
satisfactory level of the ratio and the ratio for IFIC is unsatisfactory over three years.

Earnings per Share (EPS):

BANKS/YEAR 2019 2018 2017
DBBL 8.22 19.99 11.44
IFIC 1.66 1.17 1.73
PBL 3.61 2.78 2.74

Earnings Per Share

25
20
15
10
5
0
2019 2018 2017

DBBL IFIC PBL

Interpretation: In 2019, Tk.8.22 EPS for DBBL means that every share of their company has
earned Tk.8.22 of income. The time-series analysis shows that the ratio for both IFIC and
PBL has been somewhat stable over the three-year time period. But DBBL had excelled
remarkably in 2018 only to drop more notably in 2019. Comparison among banks shows that
IFIC and PBL has maintained a low but stable EPS ratio and for DBBL it has been
fluctuating in a wide range unpredictably over three years.

Price-Earning (P/E) Ratio:

BANKS/YEAR 2019 2018 2017
DBBL 8.68 7.22 13.39
IFIC 5.97 9.29 10.41
PBL 3.45 4.21 5.73

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 P/E Ratio
16
14
12
10
8
6
4
2
0
2019 2018 2017

DBBL IFIC PBL

Interpretation: In 2019, P/E ratio 8.68 for DBBL means that investors are willing to pay Tk.
8.68 for every taka of the company’s earnings. The time-series analysis shows that the ratio
for PBL has been on a stable declining rate over the three-year time period. The ratio for
DBBL had fallen significantly in 2018 started a good recovery in 2019 while IFIC has
observed a steady decline in 2018 and dropped more notably in 2019. Comparison among
banks shows that IFIC and DBBL has maintained a high but fluctuating P/E ratio and for
PBL it has been stable but slightly declining.

CAMEL RATING ANALYSIS :

Desta (2016) mentioned that, “CAMELS rating is a financial performance evaluation system
often applied to the banking industry, which is originally developed by the Uniform Financial
Institutions Rating System (UFIRS).” The six components stand as acronyms for the name.
the sixth parameter is excluded in this study because of lack of information. The selected
relevant ratios are rated according to the following table from a study on African banks by
Desta (2016).

Source: Babar and Zeb (2011) and Rozzani and Rahman (2013), as cited by Desta (2016)

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 Averag
CAMEL Bank
Ratios 2019 2018 2017 e
Parameter s
Rating
CAR 15.53% 15.62% 14.49%
DBBL 1.33
Rating - CAR 1 1 2
Capital IFIC CAR 12.80% 12.63% 12.57%
2.00
Adequacy   Rating - CAR 2 2 2
PBL CAR 12.61% 12.27% 12.12%
2.00
  Rating - CAR 2 2 2
NPLs to Total Loans 4.62% 4.39% 4.88%
DBBL 4.00
Rating 4 4 4
Asset IFIC NPLs to Total Loans 5.37% 6.16% 6.40%
Managemen 4.67
  Rating 4 5 5
t
PBL NPLs to Total Loans 6.70% 3.99% 4.69%
4.33
  Rating 5 4 4
Cost-Income Ratio 58.71% 68.80% 69.99%
DBBL 5.00
Rating 5 5 5
Managemen IFIC Cost-Income Ratio 53.95% 56.73% 54.78%
5.00
t Efficiency   Rating 5 5 5
PBL Cost-Income Ratio 43.50% 45.44% 50.18%
4.33
  Rating 4 4 5

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 ROA 1.08% 1.18% 0.74%
3.67
Rating - ROA 3 3 5
DBBL
ROE 15.35% 17.66% 11.89%
2.67
Rating- ROE 3 2 3
ROA 0.77% 0.55% 0.82%
4.33
Earning Rating - ROA 4 5 4
IFIC
Capacity ROE 9.94% 7.10% 10.07%
3.67
Rating- ROE 4 4 3
ROA 1.27% 1.03% 1.05%
2.67
Rating - ROA 2 3 3
PBL
ROE 17.94% 14.57% 14.60%
2.67
Rating- ROE 2 3 3
116.90 120.68 123.79
DBBL Liabilities to Deposit Ratio % % % 5.00
Rating 5 5 5
Liquidity 113.15 115.30 116.24
IFIC
Managemen Liabilities to Deposit Ratio % % % 5.00
t   Rating 5 5 5
116.22 118.54 120.19
PBL
Liabilities to Deposit Ratio % % % 5.00
  Rating 5 5 5

The composite of these five components show that,

Average DBBL IFIC PBL
Rating 3.61 4.11 3.50
According to the average composite rating, DBBL is the best fit in terms of overall soundness
followed closely by PBL, both of them has maintained fair ratings. However, the rating for IFIC
is below average and if not improved by enhancing especially management efficiency and
liquidity management, the bank might face serious crisis.
II.4 Major Regulations
DBBL (201):
Compliance with Bangladesh Bank Regulations: As a commercial bank, DBBL is regulated
and supervised Bangladesh Bank under the Banking Companies Act, 1991.The rules and
regulations made there under it attach to the DBBL. Strict compliance with all regulators is the
highest priority Requirements of Bangladesh Bank in case of core risk Management, capital
adequacy ratio, foreign exchange Regulation, Liquidity Management, KYC and Anti-Money
laundering consent etc.
Audit & Inspection: In addition to DBBL's extensive inspections, BB also conducts audits and
inspections DBBL at regular intervals. Consent to observation and supports the
recommendations made by BB, banks to improve internal control, risk management Corporate
governance and regulatory compliance Maximum benefits for all stakeholders.

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Compliance with Corporate Governance Guidelines of Bangladesh Bank: DBBL has
adequately complied with the corporate Bangladesh Bank Governance Guideline (BRPD
Circular) In terms of overall business, No. 11, dated October 27, 2013) Bank activities, including
credit and risk management, Internal control, as well as human resource management Income
and expenditure. It fully agrees with the structure Board, Executive Committee, Audit
Committee and Risk Board and their TOR Steering Committee To improve the overall corporate
management system of the bank and protect the interests of all stakeholders. Division Financial,
management and administrative authority and There was responsibility between the board and
the management also sure. (Annual Report 2019)
Compliance with BSEC regulations:
As a listed company, DBBL is regulated by Bangladesh Securities and Exchange Commission
(BSEC). We have Adequate compliance with corporate governance guidelines Bangladesh
Securities and Exchange has issued the commission is as follows: The board has two
independent directors. They are members of the audit committee of the board with which it is
appointed the Chairman the quorum of the audit committee is not constituted without at least one
independent director who received a certificate from Messrs. A. Qasim O. Co., [a member of
Ernst & Young Global Ltd.], Chartered Accountants on Reporting and Consent BSEC's Guide to
Corporate Governance. Code of Conduct in accordance with the Rules of Directors Bangladesh
Bank and Bangladesh Securities and Their respective corporate exchange commission’s
Governance code, director and later are followed annual compliance has been reviewed and
recorded.
Report of the Audit Committee of the Board as per BSEC
The committee was reconstituted several times due to the change Board / Committee member
and Follow the rules of Bangladesh Bank Besides, Bangladesh Securities and Exchange
Commission. Accordingly, the latest audit committee was reconstituted at the 213th meeting of
the Board of Directors of DBBL 30 June 2019 with the consent of BRPD Circular No. 11, dated
27 October 2013. The purpose of the audit committee is to assist The Board of Directors is
mainly in the following areas: Establish a culture of consent through adequate internalization the
control system ensures that the CINT manages risk management the bank has a system to
manage the main risks Financial reports published by banks are reliable. An adequate
information technology (IT) development and MIS and is establishing a sign control system in
between.

Stress Testing as a forward-looking tool for risk Management:

Stress testing is an important risk management tool Which identifies and supports potential risks
Optimization of capital and liquidity bu. It is in motion Exploration of weaknesses in business
models. When it comes to overcoming the limitations of historical information. Stress tests are
used to measure the impact of extreme, yet admirable events. Where necessary, Action is taken
on the basis of results DBBL's risk stress test consistent with hunger. The bank should
periodically review its risk the management process to ensure its integrity, accuracy, And
rationality through stress testing. A bank must have written policies and procedures in place
Stress-testing program According to Bangladesh Bank, DBBL has done stress testing Regular
2019 guidance at quarterly intervals. The inquiries were reported to Bangladesh Bank and the
Board Directors of the Bank for Consent and Guidance. Results from Stress Testing and
Guidance Bangladesh Bank and Board were also considered Potential risk assessment, such as

18 | P a g e
risk reduction as well as current and future capital requirements banks. Until 31 December 2019,
combined post-shock Juvenile Asset Ratio (CRAR) is risky capital in the case of stress tests, the
level of DBBL stands at 11.7575% Parameters prescribed by Bangladesh Bank (BB).
IFIC (2019):
Compliance with Laws and Regulations: The bank will continue its business
Including laws and regulations and will not assist, Encouragement or support of any wrong
transaction or Activities.
HR consent: IFIC Bank HRM Department maintains consensus among all to develop and
maintain organizational levels Ethical culture throughout the organization. HRM department
Encourages employees to abide by the rules and All applicable as well as bank regulations the
law of the land and through it promotes the same Continuous training program. In addition, the
HRM department has a separate discipline IFIC Bank employees (disciplined and Appeal) Rule
2003 which deals with the Cell Judicial Activities proceedings for misconduct management
committed by any criminal.
Internal Control and Compliance Risk Management:
The process influenced by the mantle control board Director, Senior Management and all levels
Personal of designed to provide reasonable Assurance about achieving the objective Efficiency
and operation efficiency, Reliability and compliance with financial reports Applicable laws,
regulations and internal policies. Internally, to protect the assets of the organization Control is
basically the goal of management support in identifying and mitigating these risks Which the
bank may face in case of fulfillment business purpose. The internal control system of the bank
ensures this All necessary policies, guidelines and manuals Is in place and all concerns are
following the same Strict and careful with departmental Control Function Checklist (DCFCL).
Monitoring Overall functionality of internal control system Management Committee (Mancom)
is regular Review policies and procedures as well Clear responsibilities, authority and Reporting
Relationships.
Objective of Internal Control:
The primary goal of the internal control system to help the bank perform with a sound and
prudent
Procedure with minimal resources. Through an effective the internal control system will be
recognized by the bank Operational weaknesses and taking appropriate action to overcome the
same. Its main goal Internal controls are classified as follows: The purpose of the zz operations:
related to it Uses the efficiency and efficiency of the bank Its resources and other resources for
achievement the main goals and vision of the bank. The purpose of zz reporting: it addresses
Timely, accurate and Financial reporting, financial and non-financial, Internal and external.
Internal Assessment of Capital:
The capital management structure of the bank Includes a broad internal capital recognition
Assessment Process (ICAAP) conducted annually, which determines the adequate level of
capital Required to meet regulatory requirements and current and future business needs,
including being under pressure Situation. ICAAP is made individually at the bank level it
includes a capital plan for Horizons, identification and measurement over a five-year period the
relationship between material risk and risk and capital. The structure of capital management is

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Supplemented by risk management frameworks, which includes a comprehensive assessment
Material risk. Stress testing, which is a key aspect ICAAP and risk management frameworks,
Provides an insight about the effects of extreme but in the risky profile of the bank Capital
position. Issued on the basis of Bangladesh Bank Stress testing framework, bank manages stress
Examines different portfolios and evaluates its impact Capital ratio and adequacy of capital
buffers for the present and future tenses. Banks in phases Evaluates and corrects its stress tests in
an effort to confirm it Capture the risk of the situation in that stressful situation That could
potentially reflect the final market move Emerged as a result of market conditions. Business And
capital planning and its stress testing results the group entity ICAAP is integrated. On an ICAAP
basis, determines the level of the bank Capital which needs to be maintained under risk SRP e.g.
residual risk, concentration risk, interest Rate risk, liquidity risk, reputation in banking books
Risk, strategic risk, settlement risk, assessment Key risk management practices, environmental
and by the risk of climate change as well as other material risks Consider the following in an
integrated manner:
 Strategic focus, business planning and growth Purpose;
 According to regulatory capital requirements Guidelines of Bangladesh Bank
 Evaluate material risk and its impact Stress test
 Realization of credit rating agencies, Shareholders and investors;
 Future strategies or in investment related cases Division into subsidiaries; And
 Evaluate options to raise capital from as approved by domestic and foreign markets
Bangladesh from time to time.
Premier Bank (2019):
Code of Conducts: Banking is the ultimate honesty and a business based on it Mutual trust. And
for the protection and preservation of confidence of customers and people, Premier Bank Places
maximum emphasis on specific maintenance Behavior values. The standard of conduct of the
bank Basically consists of some rules, regulations and ethics Policy. It is essential that all
employees be familiar Code of Conduct Manual and Observe the standards of conduct of the
bank. Among the other principles we have seven core values the code of conduct is as follows:
Truthfulness - honesty and clarity in everything we say and taxes. Responsibility - Accepting our
commitment to the locals the community and our shareholders.
Compliance Unit: This unit was originally sent to confirm compliance Applicable laws and
regulations, policies and guidelines Related regulatory authorities (Bangladesh Bank, NBR etc.)
As well as internal policies and procedures Conducted his business. They mainly maintain
contact with All controller and change / change communication to update consent to related
issues. This unit All regulators in Bangladesh ensure compliance with the report Banks as well as
internal audit reports.
Shari’ah Audit
The bank has two (two) branches, one in Dhaka and the other One of them from Sylhet who is
conducting their banking activities on the basis of complete Shariah rules and regulations. There
are banks There was also a Sharia supervisory committee that used Review periodic meeting
arrangements and ongoing issues and give timely appropriate advice. The Shariah Audit Unit
conducts internal Shariah audits These branches submit reports on a semi-annual basis Board
Audit Committee for review.

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Corporate Governance
An idea referring to the corporate governance norm Mode to ensure accountability of different
companies Stakeholders and through a strict system of internal controls method. Since the
responsibility of a good maintenance the corporate governance system depends on the board of
directors, The Board of Directors of Premier Bank Limited has always maintained Limited to
regulations related to different regulators Body. Premier is the corporate administration of the
bank High quality fairness, transparency, Accountability and responsibility on its highest
priority. Us
Disclosure of BSEC Consent Dignity and Bangladesh Bank's guidelines are firmly adhered to
Bank culture. Details of corporate administration the practice of banking is discussed in separate
sections the page titled 'Corporate Governance' is called page 101 to 122 of this report.
Audit committee
An audit committee is set up to assist the bank's board of directors in overseeing its duties and
other responsibilities. Implement the goals, strategies and overall business plan set by the Board
for the effective operation of the Bank. On behalf of the Board of Directors, the Audit
Committee makes efforts to ensure effective implementation of procedures and procedures
Set in Business Plans and Policies by the Board of Directors. The audit committee reviews the
internal control system Overall compliance status of the bank. Bangladesh Bank's BRPD
Circular 11th October 2013 and BSEC's (Bangladesh Securities and Exchange Commission)
Corporate Governance Code Notification 3 June 2018, Board of Audit Committee Premier Bank
Limited has been formed to assist the Board of Directors of the Bank in discharging its
responsibilities Financial reporting, internal control, risk management process, auditing activities
and reviews and/or monitoring Compliance with existing laws and regulations and the Code of
Business Conduct. Constitution.
Functions of the Audit Committee
The main task of the audit committee is to facilitate the board in its oversight responsibilities. To
perform responsibilities, The main responsibilities of the Audit Committee, among others, are as
follows: Financial reporting process monitoring, Review the system of internal control and
financial risk management, Review the adequacy of the internal monitoring function, Ensure
compliance with existing laws and regulations and its own code of conduct, Internal Audit
Report and External Audit Report, Meet with management and external auditors before
finalizing and reviewing financial statements. Submitted to the board for approval or acceptance;
Recommendations of the Board regarding the appointment or re-appointment of external
auditors. Perform other activities as requested by the Board of Director. Legal financial
institutions require financial statements to properly maintain their financial position and perform
their functions. Bangladesh Companies Act 1991, Rules issued by Bangladesh Bank, Companies
Act 1994, comply with the law Securities and Exchange Rules 1987 and other applicable laws
and regulations.
II.5 Impacts of COVID-19 Crisis
Banks  Years Revenue Net Income after Earnings per share market price per
tax share
DBBL 2020 $ $ 4.33 56.9
6,883,980,000.00 2,164,060,000.00

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   2019 $ $ 3.83 68.9
4,903,570,000.00 1,913,280,000.00
IFIC 2020 $ $ 0.43 8.6
4,045,999,430.00 635,804,335.00
  2019 $ $ 0.83 10.6
5,213,064,694.00 1,222,445,774.00
Premier 2020 $ $ 1.01 9.9
4,555,367,945.00 933,943,986.00
  2019 $ $ 1.34 11.6
5,424,542,119.00 1,234,513,064.00

Impact of COVID-19
$8,000,000,000.00
$7,000,000,000.00
$6,000,000,000.00
$5,000,000,000.00
$4,000,000,000.00
$3,000,000,000.00
$2,000,000,000.00
$1,000,000,000.00
$-

Revenue Net Income after tax

Earning per share market price per share

According to interim financial performance from DSEX has shown that, in 2020 Dutch bangle
bank revenue is 6883.98 and the profit is 2164.06. Also earning per share is 4.330 and the market
price per share is 56.9 taka. From 2019 to 2020 DBBL share value is not satisfying for COVID-
19. In 2019 they maintained a consistency but at the end of 2019 they did not perform well for
COVID. Now the market price is fluctuating and the value is also changing according to market
value.
IFIC bank plays a significant role in share market. IFIC bank revenue is now 1333.36 and they
earned profit from operations is 865.64. Earnings per share is 0.590 and market price per share is
8.6 taka. So, we can see in 2020 they did not perform well in share market. Also, their volume
rate is also fluctuated continuously and they did not maintain the consistency from 2019 to 2020.
They had huge loss in share market for COVID-19.
Premier bank revenue is 1755.33 and profit from operation is 933.94. In addition, the earning per
share is 1.010 and market price for per share is 9.9 taka. The volume is 3.50. It means their
volume rate is quite good until now. The value is changing but it maintained a good consistency
so far.

III. Summary & Conclusions

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The aim of this study was to gain in-depth knowledge of the intricate ways of operating banking
operation and evaluate the selected assigned banks performances with the help of some
established evaluation methods and systems. The financial and CAMEL analysis has shown that
the most efficient in terms of risk management and over all management is Dutch Bangla bank
while the in terms of profitability, Premier bank was the highest achiever. Their high
profitability can be accounted for their high risk-taking tendency. However, it also exposes the
bank to liquidity and credit risks particularly like below average efficiency level. On the other
hand, IFIC bank has been operating at a moderate level of risk and profitability, perfectly
balancing the two. However, their overall soundness of the company has also declined due to
risk averse attitude. They must find way to balance risks while improving their fitness
simultaneously.
COVID-19 has caused the whole global economy to drop remarkably. From the analysis of
before and after pandemic situation of the banks, it can be seen that except DBBL, the other two
banks have declined in all the profitability and market factors. However, DBBL has indeed
inclined with in 2020 and their financials do not hold much evidence of harm due to pandemic. It
obviously is because of their risk averse attitude which has helped to cushion the blows of the
pandemic.
To conclude, the study shows the results of two different attitudes of operating any business,
banks in particular for this report. Both the ways have their respective benefits and downfalls.
But, above all, efficiency in management and other aspects, truly affects the overall soundness
and performance of the institution.

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References

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l_statements2019.pdf

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The Premiere Bank Limited. (2019). Annual Report 2019. Retrieved from
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http://premierbankltd.com/pbl/wp-content/uploads/2018/05/Annual-Report-2017.pdf
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http://premierbankltd.com/pbl/wp-content/uploads/2020/07/Half-Yearly-Financial-Statements-
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%E2%80%9CTHE-BEST-AFRICAN-BANKS%E2%80%9D%3A-
Desta/fbbaa7e1e3dd26da01cff5ea000d200bb4c7db8c

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Appendix

All the calculations and charts are referenced from the below mentioned excel file.
Project_Grp7.xlsx

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