Professional Documents
Culture Documents
Prepared By
Md Ashaduzzaman
Matric ID: EB183013
Program: BSS (Hon’s) in EB
Department of Economics & Banking
International Islamic University Chittagong
Prepared By
Md Ashaduzzaman
Matric ID: EB183013
Program: BSS (Hon’s) in EB
Department of Economics & Banking
International Islamic University Chittagong
Supervisor
Mohammed Jashim Uddin
Assistant Professor
Department of Economics & Banking
International Islamic University Chittagong
Signature of supervisor
Department of Economics & Banking
Faculty of Social Sciences
International Islamic University Chittagong
Letter of Transmittal
Date: 04/01/2023
Dear Sir,
This is my internship report on " Investment Performance Analysis of EXIM Bank Limited: A
study on CDA Avenue Branch". I had the opportunity to work at Exim Bank Limited as part of
my internship program which is an integral part of my academic programme. It is a
great achievement to work under your active supervision.
I would be very grateful if you would be so kind as to accept this report and give your
valuable opinion.
Sincerely,
Md Ashaduzzaman
Matric ID: EB183013
Program: BSS (Hon’s) in EB
Department of Economics & Banking
International Islamic University Chittagong
i
Acknowledgement
First of all, I would like to express my deepest gratitude to Almighty Allah for giving me the
strength and opportunity to complete this report within the allotted time.
I also thank my supervisor, Mohammed Jashim Uddin, Associate Professor in the Department
of Economics and Banking, Chittagong International Islamic University, for his motivational
inspiration, kind guidance, valuable suggestions, and advice during my internship.
I express my sincere thanks to Mr. Feroz Ahamed (FAVP and Manager), Mr. Mazharul Islam
(EO), Taslim Uddin Ahmed Mazumder (Director) and Md.Zakir Hossain (TO) from Exim Bank
Limited, for his warm attitude and help which has enabled me to successfully produce this
practice report.
ii
Letter of Acceptance
I am pleased to confirm that the data and insights presented in this report are the authentic
work of Md Ashaduzzaman. I recommend the report by Md Ashaduzzaman Islam for more
scholarly and clear recommendations.
It was a pleasure working with him. I wish you every success in life.
Md Ashaduzzaman
Matric ID: EB183013
Program: BSS (Hon’s) in EB
Department of Economics & Banking
International Islamic University Chittagong
iii
Disclaimer
I wrote this report based on my work experience and observations during the internship.
Therefore, I declare that this report is original in nature and has not been copied from other
sources.
Md Ashaduzzaman
Matric ID: EB183013
Program: BSS (Hon’s) in EB
Department of Economics & Banking
International Islamic University Chittagong
iv
Executive Summery
EXIM Bank Ltd. was incorporated on 2 June 1999 as a public limited company under the
Companies Act 1994. The bank began commercial banking operations on August 3, 1999. It
received approval from Bangladesh Bank on July 1, 2004 to start its operations. The bank
conducts banking operations through its 83 branches across the country. The bank's commercial
banking activities encompass a wide range of services, including mobilizing deposits, providing
investment opportunities, discounting bills of exchange, conducting money transfers and foreign
exchange transactions, and performing other related services such as custody, collection and
issuing of guarantees, acceptances and letters . The report mainly focuses on "EXIM Bank
Limited Investment Procedure and Ratio Analysis: A Study on CDA Avenue Branch", which
consists of Chapter One - Introduction, Chapter Two - Organization Consists of Part, Chapter
Three - Body of the Report, Chapter Four - SWOT Analysis, Ratio Analysis, Chapter Five -
Findings, Conclusion, Recommendation, Bibliography. Here I talked about “Investment
Procedures and EXIM Bank Limited Ratio Analysis: A Study of the CDA Avenue Branch" To
discuss this, I have also provided information on the vision, mission, goals, core values and all
related information of EXIM Bank LTD". Bank customers are moderately satisfied with the
bank's service; Employees of the organization do everything to support the customer.
v
Table of Contents
Topic Page
No.
Letter of Testimonial i
Acknowledgement ii
Disclaimer iv
Executive Summery v
CHAPTER ONE
INTRODUCTION
1.4 Methodology 3
1.5 Limitations 3
CHAPTER TWO
ORGANIZATIONAL PART
CHAPTER THREE
3.2 MUDARABA 14
3.2.5 Sanction 15
3.2.6 Disbursement 16
3.3 BAI-MUAJJAL 16
Meaning of BAI-MUAJJAL 16
4.2.2 Efficiency 27
4.2.3 Profitability 27
4.4 Efficiency 30
4.5 Profitability 33
4.5.1 Return On Equity 33
4.5.2 Return On Asset 34
4.5.3 Net Operating Margin 35
4.5.4 Net Profit Margin 36
5.1 Finding 40
5.2 Conclusion 41
5.3 Recommendation 42
5.4 Bibliography 43
CHAPTER ONE
INTRODUCTION
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1.1 Origin of the Report:
The report entitled “Investment Performance Analysis of EXIM Bank Limited: A study on
CDA Avenue Branch” is the result of three months internship program in Export Import Bank
LTD (EXIM), CDA Avenue Branch, which is an integral part for the completion of BSS
Program under Department of Economics & Banking, International Islamic University
Chittagong.
Specific Objective:
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1.4 Methodology:
This report was created based on the internship experience received from September 15, 2022 to
December 15, 2022. I held a group discussion and gathered data to compile this report. I also went
over the bank's numerous circulars and investment instructions. I hope that these criteria were
adequate to give a variety of viewpoints on the financial performance of the chosen bank (EXIM
Bank). To determine the facts and attributes of the bench, I employed the following approaches
during my investigations:
Data Collection
Primary Sources
Secondary Sources
1.5 Limitations:
While I have done my best to provide the most up-to-date and accurate information about the bank
in this report, there were some caveats. Because of this, I was not able to present the report with the
level of detail I wanted. The limitations were-
The information I have used in this report comes from a secondary source which included
the bank's financial statements from 2017 to 2021 as well as information from the bank's
website.
The framework for the creation of this report has been limited to 3 months or one semester.
If you had more time, you could probably present the information more clearly.
Participate in organizational culture was written from the perception of the individual.• In
many cases updated information was not published.
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CHAPTER TWO
ORGANIZATIONAL PART
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2.1 An overview of Islamic banking system in Bangladesh
Bangladesh is the world's third-largest Muslim country, with 90 percent Muslims. In 1983, the
first Islamic bank, "Islami Bank of Bangladesh Limited," was established, launching the
Islamic banking system in Bangladesh. Following that, five additional full-fledged Islamic
banks and 20 Islamic banking branches of ten conventional banks began operations in the
private sector under Islamic Shariah. Despite certain operational issues, they have had nearly
two decades of effective Islamic banking operations in Bangladesh.
Currently, six private commercial banks in Bangladesh are fully fledged Islamic banks, while
ten conventional banks are partially participating in Islamic banking in a total of 20 branches.
EXIM Bank Limited was established in 1999 beneath the direction of Late Mr. Shahjahan Kabir,
founder chairman, who had a long-held desire of establishing a commercial financial organization
that might contribute to our country's socio-economic development. He had a long career as a
famous banker. A group of well-known and successful marketers joined hands with the original
chairman to make his ambition a reality. Indeed, they all established themselves as the most
successful person in their respective industries via their hard work, intellect, hard work, and
entrepreneurship abilities. Mr. Nazrul Islam Mazumder, one of them, has succeeded the honorable
original chairman as honorable chairman. This banking organization commenced operations on
August 3, 1999, with Mr. AlamgirKabir, because the marketing consultant and Mr. Mohammad
Lakiotullah because Mr. Mohammad Lakiotullah is the Managing Director and the marketing
consultant. Both of them have extensive experience in our country's financial sector. This financial
institution has gained a secure 7 and outstanding place within the banking enterprise in terms of
performance, expansion, and exquisite control through their prudent choice and control directives
inside operational operations. The bank commenced operations with a preliminary legal capital of
Tk.50 million and a paid up capital of Tk.10.5 million.
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• Serving as a trusted depository for consumers' money as well as their financial
counselor.
As the name implies, the Export Import Bank of Bangladesh Limited is not a new type of bank in
the world, but it is the first in Bangladesh. It believes in working together with its clients, in
moving forward on the route of growth and service advancement. To reach the intended result, it
strives for excellence at all phases and fosters a culture of continual development. Because they
believe the line of perfection is infinite. It also thinks that its strategic initiatives and business
network will help it gain a competitive advantage in a fast changing market. Your ability to
provide high-quality tailored services to consumers while striving for continual improvement
might be the key to your operational success.
Corporate Social Responsibilities (CSR) are funded by the foundation with at least 2% of each
year's profit. This foundation is responsible for the majority of the mainstream CSR activities,
which include:Healthcare service.
Education Promotion Scheme (Interest-Free Loan)
Scholarship Program for Brilliant Poor Students
Assistance to People Affected by Natural Disasters
Assistance to People Living in Slums
Donation to Educational Institutions for the Establishment of Computer Labs
Beautification of Dhaka City
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EXIM Bank expanded all Islamic banking services in Bangladesh as a full-fledged Islamic
bank, offering a wide range of savings and investment products, foreign exchange, and
ancillary services with the help of sophisticated IT and experienced management. Diverse
industrial and commercial sectors make up the Bank's investment portfolio. Textiles, ready-to-
wear, chemicals, cement, telecoms, steel, real estate, and other service industries, such as
general trade finance, are all included in these sectors. The Bank puts areas of strength for an
on securing quality resources and is focused on holding great clients through client relationship
the executives and monetary counsel. At the same time, efforts have been made to attract new
clients who have a good chance of diversifying, establishing a reputable structured investment
portfolio, and reducing overall portfolio risk.
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2.9 Organogram of EXIM Bank
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2.10 Organogram of Exim Bank Ltd. (CDA Avenue Branch)
OPERATION MANAGER
EXECUTIVE OFFICER
SENIOR OFFICER
OFFICER
TRAINEE OFFICER
Bank Guard
MESSENGER
Monthly Savings Scheme (Money Grower): A plan to save each month. With ease,
secure your future. You'll feel better tomorrow if you save a little now. You can save
for 3, 5, 8, 10, or 12 years.
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Monthly Income Scheme (Steady Money): A plan that is implemented monthly that
really makes sense. A definite speculation for a consistent return. In point of fact,
consistent income makes your money work for you. a higher deposit and a higher
monthly income
Multiplies Savings Scheme: o quickly gather public funds that are idle in exchange for
a high return.
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1. Letter of 3. Import and 4. Syndicated
2. Guarantee
Credit Export Finance Loan
7. Working 5. Project
6. Leasing
Capital Finance Finance
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CHAPTER THREE
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3.1 Investment Activities of EXIM Bank
In my report I have concentrated on main three modes of investment activities of EXIM Bank
Bangladesh Limited. These are:
Mudaraba
BaiMuajjal
Izara Bill Bia.
3.2 MUDARABA
A Mudaraba is a contract between two parties in which one party provides the other with capital for
the purpose of engaging in business with the understanding that any profits will be shared in a
manner agreed upon by both parties. However, losses are solely the responsibility of the capital
provider.
Mudaraba is a contract between people with capital and people with expertise. One party provides
capital, and the other provides expertise, with the goal of earning halal (lawful) profit that will be
split in a way that both parties agree upon. This sort of undertaking serves the interest of the capital
proprietor and the Mudarib (specialist).
It's possible that the owner of the capital does not have the knowledge or skills necessary to run a
profitable business. The Mudarib, on the other hand, might not have enough money to put into a
project or business. As a result, each party benefits from entering into a contract with Mudaraba,
enabling the financing of a business venture.
2. Specific Mudaraba: The mudarib is unable to go beyond the specific purpose, which
limits this investment.
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3.2.3 Procedures of Opening Mudaraba
Because real economic function may not be reflected, income may be manipulated, and criminal
insurance may not be available, running a Mudaraba business may be extremely challenging. As a
result, Bank may only work on a very limited basis with Mudaraba for a specific reason.
o The Mudarib should be a genuine man of dynamic positive routines with solid responsibility
having ability to create pay.
o He or she must be trustworthy and honest without a doubt, and they must have a moral
character.
o He or she must have sufficient experience in the industry they plan to enter. Any
experimental endeavor will not be eligible for a Mudaraba grant.
o To predict the conditions of the market in the future, he or she must be prudent and
foresightful.
3.2.5 Sanction
o If the evaluation was successful, a quadruple Mudaraba Sanction Advice should be prepared.
Send Mudaraba funding sanction advice to the buyer in reproduction and one reproduction
to the concerned Department of Head Office regarding one reproduction with the Branch if
the idea is in the discretionary power delegated to the department through head office.
o In the event that the idea is past the optional power of the division, ahead the equivalent to
Administrative center/Zonal Office with Evaluation Report in multiplication altogether with
all kinds of required papers and documents giving novel comments and
o Acquire one multiplication of Mudaraba Venture Exhortation from the buyer properly
acknowledged. This should be protected with documents of the subsidizing stressed.
3.2.6 Disbursement
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o Give each approved proposal an account number. Make use of the Investment Account
Opening Register for this purpose. Modal maintenance will be performed on this register.
o Execute the necessary documents, including the agreement, and make arrangements for their
safekeeping.
o Client-side file opening. Connect Speculation Record in each document and in the connected
papers.
o Fill out the Mudaraba Investment with the proposal. Complete all of the details for the ledger
heads and have an officer authenticate them.
It is a completely investment-based form of financing. In Mudaraba, the capital issuer does not hold
any authority over the capital. However, for the duration of the contract, he must bear both the
possibility of capital loss and the possibility fee for capital. Both the return fee and the capital fee
are somewhat uncertain.
The Arabic words "Bai" and "Ajal" are the sources of the terms "Bai" and "Muajjal." "Bai" means
"purchase and sale" and "Ajal" means "a fixed time or a fixed period." A sale known as "Bai-
Muajjal" requires payment to be made at a predetermined date or within a predetermined time frame.
In a nutshell, it is a credit sale.
The Bai-Muajjal is a contract between a buyer and seller in which the seller sells specific goods that
are allowed by Shariah and the law of the country to the buyer for a fixed price that can be paid in
one lump sum or in fixed installments at a certain fixed future date.
o The client will typically approach the bank with an offer to purchase a specific good through
a Bai-Muajjal agreement, and this is permitted.
o It is okay to take cash or collateral as security to make sure the promise will be carried out
or to protect the bank from damage if they don't pay.
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o The bank is in charge of all goods purchased on behalf of a Bai-Muajjal agreement until the
client receives them.
o The goods must be delivered to the client by the bank at the agreed-upon time and location.
o To make a profit, the bank might sell the goods for more than the purchase price.
Investment in the Bai-Muajjal mode is more risky than investment in other modes if it is not secured
by first-class collateral securities, which should be kept in mind. Prior to making any investment
decision in Bai-Muajjal mode, the following factors should be taken into consideration:
o Obtain the goods' invoice and check to see that they can be easily sold, that there is a constant
and effective demand for them in the market, and that their prices are consistent with the
wholesale price and do not change dramatically.
o that long-term storage does not result in rapid deterioration of the goods.
o This allows for the client's desired quantity and other specifications to be guaranteed for the
goods.
o As a result, the bank will be able to acquire the goods promptly at a price agreed upon.
o The client is responsible for paying the goods' sale price in accordance with the agreement
in one lump sum or in equal installments at a later date.
o Both the delivered goods and the client's own business stock remain hypothecated to the
bank.
Invested in industrial enterprises for the supply of raw materials, investment made by individuals
to businesses for the purpose of trading, importing goods from abroad, and providing seeds,
fertilizers, and other supplies. to the agricultural industry will be referred to as "Commercial."
The formats developed for each kind of scheme will be used to evaluate Bai-Muajjal investment
proposals.
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3.4.1 Definition of Ijarah
Ijaraha is the ownership of a benefit for consideration, according to lawyers. Lease or Hire contract
are other names for this. Al-Ijarah is a word in Arabic. According to Islamic Shariah (jurisprudence),
Ijarah is a contract between two parties—the lessor and the lessee—where the lessees (Hirer or
Mustajir) have the right to enjoy/reap a specific benefit against a specified consideration/rent/wages
from the lessor—the owner (Muajjir). This has been derived from the Arabic term "Ujr" or "Ujrat,"
which means "consideration," "
o The contract's subject (benefit or service) and object (asset) must be thoroughly understood
as a condition.
o It is a condition that the resources for be rented should not be a fungible one (transitory or
consumable) which can't be utilized at least a couple of times, or all in all the asset(s) should
be a non-fungible one which can be used at least a few times, or the
utilization/benefit/administration of which can be isolated from the actual resources.
o At the beginning of the lease period, the lessor is obligated to put the assets at the lessee's
disposal in a usable condition so that the lessee can benefit from them.
o The client is responsible for maintaining custody and control of the asset. However, if
the client violates the Hire Purchase Agreement's terms and conditions, the bank may
seize it.
o Until the Hire Purchase Agreement is fully adjusted, the client will be required to
provide the vehicle or transportation for a physical inspection at least once per month,
or more frequently as necessary.
o The assets that are provided to any client through Hire Purchase and are later seized due
to a violation of the terms of the Hire Purchase Agreement must be kept under Bank's
supervision.
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3.4.4 Follow-up, supervision and recovery:
o Complete the client-specific file with copies of the Application, the Appraisal Report, the
Izara Bill Bia Investment Advice, and other documents like, Certificate of Payment for
Income Taxes, a Partnership Deed or Memorandum of Articles of Association, and other
similar documents included with the original application by the client. In this file, a copy
of each correspondence and response will be chronologically preserved.
o Keep a Due Date Diary that includes, among other things, dates for rent and installment
payments. The person in charge of the Branch will go over this diary every day at the
beginning of business hours. The client will always be reminded to pay the rent and
installments in arrears on the day after the due date if they are not paid in full.
o The Izara Bill Bia-provided asset must be regularly inspected. During the inspection, the
client will be instructed to use and handle the item appropriately if any misuse or improper
handling is discovered.
The FICO rating examination technique starts off advanced with loaning strategy, which
incorporates various consecutive exercises. The levels of the lending process are carried out at both
the head office and the branches. The procedure began when debtors went to any department to get
a mortgage and continued until the customer changed the mortgage. The borrower's utility is
evaluated at multiple levels prior to mortgage approval. The levels of lending processes shown in
the float chart above are outlined below in sequential order to assess EXIM Bank Ltd.'s credit score
appraisal structures.
The credit evaluation process begins when a customer applies for a loan at any EXIM Bank location.
The selection of borrowers is a top priority for EXIM Bank, and the process begins with a customer
interview. The investment officer asks the customer questions to see if the kind of loan he wants is
available at EXIM Bank and if he is a good candidate for it. The borrower must submit a loan facility
application in the bank's approved format if the investment officer is satisfied with the customer.
The customer is screened out of the establishment if the officer is dissatisfied.
The credit appraisal system relies heavily on the initial screening because, if a problematic customer
is identified, subsequent actions for that client are unnecessary.
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3.5 L/C (Export Import Products)
The business people who want to export or import, EXIM Bank offers L/C facilities for them.
Parties can open L/C through EXIM bank for their operation.
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As Negotiating Bank: It negotiates bills of lading and other shipping documents on the
exporter's behalf. In other words, it collects the export bill's earnings from the drawer and
credits the exporter's account. The revenues of the export bill are deposited into the importer's
bank's NOSTRO account. The bank may occasionally purchase banknotes at a bargain and
retain them until they mature. When a bill matures, the bank stores it in a drawer to keep it safe.
In actuality, the CIB report is compiled by the bank's headquarters during the initial stages of
credit evaluation activities. A bank's investment division (HO) official visits Bangladesh Bank
twice a week to submit applications for CIB reports in the name of a certain borrower.
Bangladesh Bank provides the cm reports through their MIS. Generally, these reports are not
received on time (3 days). The reports are often submitted in 10 to 15 days, causing the loan
processing to be delayed. However, during this idle period, the concerned branches may
develop proposals and other critical aspects of the proposals (e.g. credit analysis, feasibility
study of the project, etc.). However, certain branches do not adhere to this in order to prevent
workload annoyances if the CIB report is bad for the customer. Again, Head Office might make
arrangements to collect CIB reports three times a week or every two days a week, so that the
bank receives regular responses from the central bank.
If Bangladesh Banks delivers a favorable CIB report on a potential borrower, the bank considers
the borrower is a good one and begins reviewing papers such as:
In the case of a corporate customer, financial documents for the previous three to five
years.
If the firm is new, financial projections for the same time period are necessary.
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Borrower(s) personal net worth • At this step, the bank will confirm that the paperwork
are correctly filled out and signed. The investment manager in charge of the appropriate
branch is responsible for learning about the ins and outs of the customer's business by
speaking with him or her.
Any loan application must be examined based on the financial information provided by the loan
applicant. Financial spreadsheet analysis, which consists of a number of quantitative approaches, is
used to analyze the risk associated with a given loan as well as the borrower's financial soundness
and worthiness. Furthermore, the bank undertakes lending risk analysis to determine the borrower's
ability to pay while accounting for the multiple hazards associated with the loan.
EXIM Bank uses the CIB Report as part of its credit appraisal methodology. It is a useful tool for
assessing a borrower's credit standing and loan repayment patterns. Bangladesh Bank provides
Credit Information Bureau (CIB) reports to banks and other financial institutions. This study focuses
on debtors who owe more than TK. 50,000 to scheduled banks and non-bank financial institutions.
This is essentially a full assignment by the investment division prior to the EC meeting that contains
the borrower's position in the EC note.
To get considerable credit for a new project, the potential borrower must submit an application
using the EXIM Bank request for credit limit form. This form is essentially a feasibility study
for a project. Although EXIM Bank may request a separate project feasibility assessment, this
suggested form must be completed for a new project. However, for an existing EXIM Bank
project, this is not required. In practice, EXIM Bank does not evaluate the feasibility of modest
loans, which are rather common in the bank.
The bank thoroughly examines the provided material in order to assess the project's feasibility.
It addresses the following project aspects:
1. Technical aspect
2. Marketing aspect
3. Financial aspect
4. Managerial aspect
5. Socio-Economic aspect
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3.7 Branch activities & valuation of collateral:
The branch's investment department consists of two or four people, depending on the branch's
staffing requirements and availability. The branch manager makes all credit decisions with the
assistance of the in-charge of the investment department. The following are some key aspects
of branch activities:
The branch is critical to the investing business. Typically, the branch investment
department seeks new borrowers, develops investment relationships, completes
the investment study, and prepares a well-written investment proposal.
A Site Plan and Map, as well as 3R size distant images of the mortgaged
property, providing complete disclosure from three angles and noting precise
particulars on the reverse of the photographs, to be obtained by the Branches.
It should be ensured that the collateral is in the physical possession of the
mortgagors(s) and the mortgagors(s) /owner(s) has/ have valid title over it.
A letter of satisfaction from the Bank‟s Lawyer to be obtained that the mortgage
formality has been properly created.
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CHAPTER FOUR
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4.1 S.W.O.T Analysis
Strengths Weaknesses
• Global product strengths/ Success • Inadequate physical presence
Transfer • Not huge marketing campaign taken
• Strong image locally to market the EXIM bank image
• Transparency
Threats
Opportunities
Increased competition from private
Cheaper source to fund asset growth banks
• Growing need for alternate banking Slowdown of global economy
channel e.g. ATMs
Weak legal structure
• Growing upper middle class and upper
Governmental encouragement and
class population
approval towards setting up new
New innovative products (already
tested in other markets) can be private banks.
brought to Bangladesh
• Overall improvement in the banking
sector
• Unexplored Global Relationship
Banking/ Top Tier Local Corporate
market for credit and non-credit
products
Underexplored MFI and NBFI
sectors
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Ihave analyzed the performance of EXIM Bank Ltd. in terms of –
Leverage Position
Activity (Efficiency)
Profitability
4.2.2 Efficiency:
Tax management ratio
Expense Control Efficiency
Degree of Asset Utilization
Operating Efficiency Ratio
4.2.3 Profitability:
Return on Equity (ROE)
Return on Asset (ROA)
Net Operating Margin
Net Profit Margin
Liquid Securities Indicator
Capacity Ratio
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4.3 Leverage Position
Total Liability
4.3.1 Debt Ratio =
Total
Asset
0.9195
0.92
0.915
0.91
0.905 0.9004 2017
0.89 2020
0.885 2021
0.88
0.875
0.87
Debt Ratio
Despite minor changes, EXIM Bank was able to maintain an average debt ratio of 0.88 from 2018
to 2019. Their overall asset is growing faster than their liabilities, but their leverage level has not
altered much between 2017 and 2019. However, in 2019, it fell significantly from 0.8891 to
0.8884. However, by 2020, it had risen to 0.9004. This is bad from a risk standpoint since
increased leverage equals higher profitability. Higher leverage suggests that the bank is more
vulnerable to risk. Financial leverage is advantageous for a bank during periods of strong earnings.
However, when the economy is in a slump, heavy financial leverage can be dangerous.
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Total Liability
4.3.2 Debt to Equity Capital Ratio =
Total Equity
Capital
11.4245
12
9.0383 8.4768
8.0831 7.9644
10
2017
8
2018
6 2019
2020
4
2021
2
From 2017 to 2019, EXIM Bank's debt to equity capital ratio has been decreasing. EXIM Bank's
debt to equity capital ratio has reduced from 11.4245 in 2017 to 7.9644 in 2019. However, by
2020, it will have risen to 9.0383. It indicates that from 2017 to 2021, their liability does not grow
faster than their equity capital. This means that their total risk and leverage are reducing. However,
because leverage is lowering, their predicted profitability may fall. As a result, management
should keep a watch on this ratio.
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4.4 Efficiency:
Net Income After Tax
4.4.1 Tax Management Ratio =
Net Income Before Tax
0.66 0.6536
0.64
0.62 0.603
2017
0.6
0.5849 0.5892 2018
0.58 0.5703
2019
0.56
2020
0.54
2021
0.52
We can see that the Tax Management ratio of EXIM Bank fluctuated between 0.603 and 0.5892
from 2017 to 2021. This pattern is evident due to fluctuations in net income after taxes as well as
net income before security gains and losses. This ratio should be increased by the bank. Because
tax is a direct cash charge that reduces net income, management should strive to increase this ratio
as much as feasible.
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Year 2017 2018 2019 2020 2021
0.3963
0.5848
2017
2018
0.4498 2019
2020
0.5182 2021
0.5348
We see a highly steady development in EXIM Bank's Expense Control Efficiency ratio from 2017
to 2019. Their expenditure control efficiency ratio has improved only somewhat. It rose very little
between 2018 and 2020. However, by 2021, it has dropped to 0.4498.
The proportional change in net income before tax and gains (losses) and total operational revenue
is the cause of this mismatch. This suggests that EXIM bank's costs are not being managed
effectively.
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Source: EXIM Bank Annual Report 2017-2021
0.0417
0.0533
2017
2018
0.0484 2019
2020
0.0683 2021
0.0509
From 2017 to 2018, EXIM bank's asset utilization ratio increased somewhat. From 2019 to
2021, the ratio was falling. It rises significantly because their total asset rose at a faster rate
than their operational revenue. This increase in Asset Utilization indicates that more assets are
being employed, which is a positive indicator for the bank.
BDT IN MILLION
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Source: EXIM Bank Annual Report 2017-2013
From 2017 to 2018, EXIM bank's operating efficiency ratio decreased. In 2020, it fell from 0.2865
to 0.2386. In 2021, however, it is expected to rise to 0.3958. It means that the bank has been
unable to effectively use its income to pay operational expenses during the previous two years.
This falling trend indicates that operational revenue is growing at a slower rate than operating
expenses. This ratio fell as a result of a considerable rise in their overall operating expenditure.
4.5 Profitability:
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Net Income After Tax
4.5.2 Return On Asset =
Total Asset
Return on Asset
0.0098
0.0202
2017
0.0129
2018
2019
2020
0.0156 2021
0.0306
The ROA yields relatively bad outcomes. It is not as effective as ROE. Though it climbed from
2017 to 2018, the growth was extremely little since their assets expanded at a faster rate than their
net revenue. EXIM bank's assets are likewise too large. Their net income is insignificant in
comparison to their total assets. It may be claimed that management is having difficulty
controlling their asset investments and creating profit from these assets.
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Operating revenue – Operating Expense
4.5.3 Net Operating Margin =
Total Asset
0.0319 2017
2018
2019
0.0519 2020
0.0315 2021
EXIM bank's performance in terms of net operating margin increased from 2017 to 2021. It has
dramatically grown from 0.0381 in 2017 to 0.0519 in 2018. In the other years, it fluctuated since
the denominator increased while the neuminator fluctuated.
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Net Income After Tax
4.5.4 Net Profit Margin =
Total Operating Revenue
0.4481
0.45 0.3787
0.4
0.35 0.305 0.2668
2017
0.3 0.2346
2018
0.25
2019
0.2 2020
0.15 2021
0.1
0.05
0
Net Profit Margin
The EXIM Bank Net Profit Margin ratio is rising. The Net Profit Margin rose from 2017 to
2018. However, it is declining since 2018, indicating that the bank's profit is diminishing. It
fell because the rise in total operating revenue outweighed the increase in net income after tax..
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Net Loan & Lease
4.5.6 Capacity Ratio =
Total Asset
0.8029 0.8044
0.82
0.8
0.78 0.7467
0.76 2017
We are seeing changes in EXIM Bank's Capacity Ratio. That is, the net quantity of loans and
leases as well as total assets are not expanding at the same rate. However, in 2018, the capacity
ratio grew from 0.8029 to 0.8044. The capacity ratio has dropped to 0.7467 in 2019. Loans and
leases are the least liquid of all assets. We know that the more loans a bank facilitates, the higher
its revenues. However, its liquidity condition deteriorates. The management must strike a balance
between earnings and liquidity.
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4.6 Ratio at a Glance:
Ratios at a Glance
Year 2017 Year 2018 Year 2019 Year 2020 Year 2021
Debt Ratio 0.9195 0.8891 0.8884 0.9004 0.8945
Debt to Equity Capital ratio 11.4245 8.0831 7.9644 9.0383 8.4768
Return on Equity (ROE) 0.2509 0.2778 0.1394 0.1297 0.0928
Return on Asset (ROA) 0.0202 0.0306 0.0156 0.0129 0.0098
Net Operating Margin 0.0381 0.0519 0.0315 0.0319 0.0252
Net Profit Margin 0.3787 0.4481 0.3050 0.2668 0.2346
Tax Management Ratio 0.6030 0.6536 0.5703 0.5849 0.5892
Expense Control Efficiency 0.5848 0.5182 0.5348 0.4498 0.3963
Degree of Asset Utilization 0.0533 0.0683 0.0509 0.0484 0.0417
Operating Efficiency Ratio 0.2865 0.2386 0.3824 0.3403 0.3958
Liquid Securities indicator 0.0240 0.0244 0.0213 0.0195 0.0218
Capacity Ratio 0.8029 0.8044 0.7467 0.6864 0.7051
Source: EXIM Bank Annual Report 2017-2021
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CHAPTER FIVE
Finding, Recommendation, Conclusion.
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5.1 Finding
Showing the most important source of legal income. Money laundering can occur
if the account holder's source of income is illicit. The source of the fund must be verified.
Ensuring appropriate introduction before creating any account might be beneficial in
tracking down the consumer for any mistakes caused by his actions.
To safeguard the client's fraudulent actions, client papers such as NID, Passport,
Driving License, Trade License, Certificate of Incorporation, and Board Legislation are
verified.
Exim Bank has reduced paperwork risk by utilizing central limit loading. Money
laundering will be reduced if Bangladesh Bank requirements are followed.
Appropriate know your customer (KYC) should be completed at the moment the
account is opened.
Opening an account is associated with risk areas. However, the bank may now
verify the national identity number (NID) using an online checking service site.
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5.2 Conclusion
To conclude the project document, EXIM Bank Bangladesh is doing very well. Though EXIM
Bank Bangladesh has a great financial condition, clients evaluated one of the branches (EXIM
Bank, CDA Avenue Branch) to be levelheaded but not exceptional. According to the poll,
customers want more from an exceptional bank, and the only way for EXIM Bank to meet such
expectations is to raise service standards. EXIM Bank is a well-known institution, and it should
project a positive image in all aspects.
One of the primary goals of this research was to assess EXIM Bank's performance. I arrived at the
following conclusion after conducting ratio analysis: I concluded that EXIM Bank's overall
performance over the period of five years was adequate. Investing in this bank will thus be a wise
move.
Before I finish this piece, I'd like to say that my internship at EXIM BANK has expanded my
practical understanding of Business Administration. I've made several types of real-life
acquaintances, which I feel will be quite useful in the future. Through this report, I tried my best
to formally communicate the results and learnings of my first professional experience, and if such
composition helps anybody, I would be grateful.
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5.3 Recommendation
EXIM Bank is one of the fastest growing banks in Bangladesh's financial sector. EXIM Bank's
CDA avenue is a tiny branch. Working with EXIM Bank was an enjoyable experience.
Employees at the bank were quite helpful and professional. Despite this, finding too many
objects within the relatively short length of the practical training program was not an easy task.
The ideas provided are just individual opinions on how to improve customer service in order to
achieve customer satisfaction and make EXIM Bank's operations easier. The following are some
suggestions:
EXIM Bank is a second generation commercial bank that has quickly built a strong reputation.
EXIM Bank is in charge of raising the living standards of a specific population by adopting
Market Finance Country and short-term loans. EXIM Bank's financial status is good. The
lending and deposit criteria are greater than those of the majority of Bangladesh's private
commercial banks. EXIM Bank's Credit Facility drew security-conscious and status-conscious
businessmen, as well as higher-level EXIM Bank service holders have a large statewide network
and provide great services. International and local banks offer services to clients and people at all
levels. BANK ULTIMUS, which was installed and used, allows EXIM Bank to connect with all
branches on the network. time, reducing unnecessary time waste for Valued Consumer
Transactions. Users may access their accounts 24 hours a day, seven days a week, thanks to
ATM cards, credit cards, and EXIM Bank telephone banking.
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5.4 Bibliography
• www.eximbankbd.com
• http://en.wikipedia.org/.
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