“Ratio Analysis of Rupali Bank Limited”

1
 Course Title: Management of Commercial Banks

Course Code: Fin380

Section: 01

Submitted to:
Dr. Javed Bin Kamal

Assistant Professor

Department of Business Administration

East West University

Submitted by:

Name Id

Sabekun Nahar 2019-3-10-035

Md. Omar Sakib Hossain 2019-3-10-218

Rasibul Islam Rafi 2019-2-10-154

Date of Submission:10 August 2023

2
10 August 2023

To,

Dr. Javed Bin Kamal

Assistant Professor,

Department of Business Administration

East West University

Subject: Submission of Financial Ratio Analysis of Rupali bank Limited.

Dear Sir,

We are very delighted to submit the term paper on “Financial Ratio Analysis of Rupali bank
Limited”. Our main incentive is to prepare this term paper according to your guidelines by your
instructions. We have tried our best to prepare our term paper as following proper instructions.

We are extremely grateful for the opportunities that you gave us to express our innovative ability
and we earnestly hope that you will like the work that we have done. We did the analysis for the
past four years (2018, 2019, 2020, 2021) and interpreted the results. We hope that our report will
meet your expectations.

Furthermore, we stand by to answer all queries regarding g our work on the term paper on
“Financial Ratio Analysis of Pubali Bank Limited”.

Sincerely,

Sabekun Nahar

Md. Omar Sakib Hossain

Rasibul Islam Rafi

3
Contents
Acknowledgment ......................................................................................................................................... 5
Executive Summary ...................................................................................................................................... 6
Chapter 1 ...................................................................................................................................................... 7
1.1 Introduction ............................................................................................................................................ 7
1.2 Objective of the Study............................................................................................................................ 8
1.3 Scope of the study .................................................................................................................................. 8
1.4 Methodology of the study ..................................................................................................................... 9
1.5 Limitations of study ................................................................................................................................ 9
Chapter-2 .................................................................................................................................................... 10
Company Overview .................................................................................................................................... 10
Rupali Bank’s Services: ............................................................................................................................... 11
Products of Rupali Bank Limited: ............................................................................................................... 12
Chapter 3 .................................................................................................................................................... 14
Ratio Analysis of Rupali Bank..................................................................................................................... 14
3.1 Liquid Assets to Total Assets Ratio: ................................................................................................. 14
3.2 Total Deposits to Total Assets .......................................................................................................... 15
3.3 Profitability Ratio ............................................................................................................................. 16
3.4 Efficiency Ratio ................................................................................................................................. 20
3.5 Asset Quality..................................................................................................................................... 21
3.6 Capital Adequacy .............................................................................................................................. 23
Chapter-4 .................................................................................................................................................... 24
4.1 Findings ................................................................................................................................................. 24
4.2 Conclusion ............................................................................................................................................ 26
4.3 References ............................................................................................................................................ 27

4
Acknowledgment
First and foremost, praise and thanks to the Almighty, for his showers of blessings throughout our
paperwork to complete the term paper successfully.
We would like to express our deep and sincere gratitude to our faculty Dr. Javed Bin Kamal,
Assistant Professor Department of Business Admiration at East West University, for allowing us
to do the term paper. Throughout this course, your dynamism, vision, sincerity, and motivation
have deeply inspired us. It was a great privilege and honor to work and study under his guidance.

5
Executive Summary

Banks have been playing an important role in the economic development of Bangladesh.
Banking is one of the sectors in which the prosperity of a country depends on. The banking
sector in Bangladesh is huge and many skilled workers are working in this sector

Rupali Bank was formed by the merger of three former commercial banks: Australasia
Bank Ltd., Muslim Commercial Bank Ltd., and Standard Bank Ltd. After Bangladesh's
liberation war, it was taken over by the Bangladesh Banks (Nationalization) in March.26,
1972. They received all advantages, powers, rights, assets, obligations, and liabilities.
Until December Rupali Bank Ltd., founded on January 13, 1986, provided national
services in the same way that other commercial banks do. Following that, On December
14, 1986, it became the country's largest public limited company. It has 565 locations
across the country. It also has foreign correspondents all over the world.

The topic of my term paper is "Ratio Analysis of Rupali Banf Limited ". As this report is
based on the financial ratio analysis from 2018 to 2021 annual report. The analysis is based
on Liquidity, Profitability, Efficiency, Asset Quality, and Capital Adequacy. This report
aims to analyze RBL ratio to compare all the year.

6
Chapter 1

1.1 Introduction

A bank is a financial institution which accepts public deposits and creates a demand
deposit while making loans at the same time. The Banking Industry is one of the most
promising industries of our country. The importance of the sector revealed through its
contribution in the economic growth of the country. This sector accelerates economic
growth through mobilizing funds from surplus units to the deficit units. The Banking
Industry is moving towards rapid changes due to technological innovation and diversified
needs of its customers. As the pace of globalization, competition in the banking sector is
increasing very fast. In this report we discussed a renowned bank of Bangladesh which is
Rupali bank ltd.

Rupali Bank Limited (RBL) is a well-known and well-established bank in Bnagladesh,

providing its customers with a wide range of banking and financial services. RBI's
financial performance and stability, as a key player in the banking industry, are of great
interest to a wide range of stakeholders, including investors, regulators, and analysts.

Analyzing the financial performance of Rupali Bank Limited through various financial
ratios can provide valuable insights into the bank's operational efficiency, liquidity,
profitability, and overall financial health as a student working on a term paper.

7
1.2 Objective of the Study
The objectives of this term paper is to present a thorough and well-researched analysis of Rupali
Bank's financial ratios, providing valuable insights into the bank's financial health and
performance as well as useful recommendations for its future growth and stability. The primary
goal of this report is to explain real-life scenarios in the organizational working environment and
Rupali Bank Limited's Financial Ratios Analysis over time. However, the specific objectives of
this study may be questionable. The report has been completed.
● To obtain information about the banking environment and its services.
● To determine RBL's performance over time using ratio analysis
● To forecast RBL's future position.

1.3 Scope of the study

Because banking departments are interconnected, conducting this study requires a broad the field
of my study is the operation of the Banani branch of The Rupali Bank Limited. understanding of
the entire banking system.
The scope of the organizational part includes The Rupali Bank Limited’s overall organizational
background, objective, function, departmentalization, Financial Performance Analysis, and
products and services. The main section discusses The Rupali Bank Limited’s financial analysis.
This refers to how the bank has performed over time.

8
1.4 Methodology of the study

The report is prepared on the basis of secondary sources of information. These are the
secondary sources:

• Annual report of The Rupali Bank Ltd.

• File balance sheet and various documents
• Different textbooks & materials
• Website of The Rupali Bank Limited
• Reports submitted by several internship students

1.5 Limitations of study

This report was conducted with the intention of making the report realistic and properly accepted.
However, numerous issues arose during the study's execution. The information provided is
insufficient. Some of the information is company secret and important, and it is only known to a
few people.

However, I make every effort to complete and submit the Report before the deadline, hoping that
it is satisfactory. The study considers the following limitations:
● It was very difficult to gather information about the banking results, as we have to
follow more about secondary information, such as accounting accounts, directories
and some of the banking records.
● The time period chosen for analysis may not fully capture the bank's
performance dynamics, particularly if the bank has experienced significant
changes or developments over a different time period.
● Not provided with information which would make the report more
informational because of confidential policy of the bank.
● Not having access to the cash section of the bank.
● No previous reports have not been prepared based on this topic.

9
Chapter-2

Company Overview

History of Rupali Bank Limited

Rupali Bank Limited was established on 26th March 1972 in Bangladesh after the merger of three
commercial banks: Muslim Commercial Bank Limited, Australasia Bank Limited, and Standard Bank,
which had operated in East Pakistan. This merger occurred under the Bangladesh Banks (Nationalization)
Order 1972.
Initially, Rupali Bank operated as a nationalized commercial bank until 13th December 1986. At that time,
the bank went public, but the majority of its shares remained under government ownership, making it the
largest Public Limited Banking Company in the country.
In January 1999, Rupali Bank took a significant step forward by automating its foreign exchange services,
improving efficiency and customer experience.
During the period from 1994 to 2003, Hafiz Ibrahim, a member of parliament from Bhola, served as a
director of Rupali Bank Limited. Despite Bangladesh Bank's rules stating that a director should not serve
more than six consecutive years, he was re-elected to the board in 2003. However, in 2005, Bangladesh
Bank removed him due to the violation of this rule. (wikipedia.org, 2023)
In 2004, Rupali Bank signed an agreement with Arif Habib Securities Limited to explore the possibility of
starting a joint venture in Pakistan. Subsequently, the bank's branch in Pakistan became a joint venture with
Arif Habib Securities Limited in 2005. (wikipedia.org, 2023)
The bank's achievements were recognized in the IT domain as well when it received the Bangladesh Best
IT Use Award, sponsored by Dutch-Bangla Bank Limited and awarded by Bangladesh Association of
Software and Information Services. The award was handed over to Rupali Bank by Altaf Hossain
Choudhury, the Minister of Commerce.
However, not all was smooth for Rupali Bank, as it faced issues with embezzlement. A businessman named
Syed Muhammad Yunus admitted to the Anti-Corruption Commission that he embezzled 240 million taka
from the bank with the help of Hafiz Ibrahim, the former director.
Throughout its history, Rupali Bank has navigated various challenges and milestones, remaining one of
Bangladesh's significant financial institutions with government ownership and a focus on expanding its
services both nationally and internationally.

10
The Vision of Rupali Bank
The vision of Rupali Bank is to expand its loyal customer base by becoming renowned as the
preferred financial partner that consistently surpasses customer expectations.

The Mission of Rupali Bank

• Develop a long-term relationship that helps our customers to achieve financial success.
• Offer rewarding career opportunities and cultivate staff commitments.
• Uphold ethical values and meet its customer’s financial needs in the fastest and most
appropriate way and continue innovative works in order to achieve human resource with
superior qualities, technological infrastructure and service packages.

Rupali Bank’s Services:

Rupali Bank Limited is a government-owned commercial bank in Bangladesh. Like most banks,
it typically offers a range of financial services, including:
• Deposit Accounts: Savings accounts, current accounts, fixed deposit accounts, recurring
deposit accounts, etc.
• Loans and Credit Facilities: Personal loans, home loans, business loans, agricultural
loans, credit cards, etc.
• Remittance Services: Domestic and international money transfer services.
• Internet Banking: Online banking services to manage accounts, make transactions, and
pay bills.
• ATM Services: Cash withdrawal, balance inquiry, and other banking services through
automated teller machines.
• Foreign Exchange Services: Currency exchange, foreign currency accounts, trade
financing, etc.
• Investment Services: Various investment schemes like term deposits, bonds, and
securities.
• Merchant Services: Support for businesses to accept card payments.
• Government and Social Welfare Payments: Disbursement of pensions, subsidies, and
other government benefits.
• Fee Collections: It offers a service for the collection of University Admission Fees.
• Special loans: Rupali Bank provides specialized loans for government employees,
catering to their housing needs for houses, buildings, or flats.
• Institutional Shareholder Services (ISS) Reporting: Rupali Bank conducts comprehensive
analysis and reporting on its governance practices and performance. This includes evaluating board
effectiveness, executive compensation, shareholder rights, and environmental/social responsibility
initiatives.

11
 • App Services: Rupali Bank is the first state-owned bank in Bangladesh to offer Mobile Financial
Service (MFS) called "Rupali Bank Sure Cash" since 2016. It facilitates government
disbursements, utility bill payments, educational institution fees collection, and business
transactions through 200 distributors and around 1.5 lac agents nationwide.

Products of Rupali Bank Limited:

Here are the products offered by Rupali Bank Limited:

Agri and Rural Credit Division:

1. Bank-NGO Linkage Loan
2. Crops Loan - Horticulture or flower/fruit cultivation loan, vegetable cultivation in home
yard/rooftop
3. Import Substitute Crops Loan - 4% concessional Pulse, Oil seeds, Spice crops & Maize
cultivation
4. Nursery & Tree Plantation Loan
5. Shossho Gudamjat Rin Prokolpo (ShoGuRiP)
6. Zero coupon (0) lending: Tomato, Mango.

CMSME Loan Products:

1. Babsahi Rin
2. Majhari Rin (Medium loan)
3. Peshajibi Rin
4. Shohoj Rin
5. Sulob Rin

Deposit Products:
1. Rupali Double Benefit Scheme (RDBS)
2. Rupali Kotipoti Deposit Scheme (RKDS)
3. Rupali Lakhpoti Deposit Scheme (RLDS)
4. Rupali Millionaire Deposit Scheme (RMDS)

12
5. Rupali Monthly Benefit for Senior Citizens (RMBSC)
6. Rupali Monthly Saving Scheme (RMSS)
7. Rupali Quarterly Profit Scheme (RQPS)
8. Rupali Senior Citizen Savings Account (RSCSS)

Home Loan:
1. Bangladesh Power Development Board Employee House Building Loan
2. General House Building Loan
3. Government Employee House Building Loan
4. Public University Employee House Building Loan

Other Products:
1. Rupali School Banking Account (RSBA)
2. Rupali Street and Working Children Account (Pothful)

13
Chapter 3

Ratio Analysis of Rupali Bank

3.1 Liquid Assets to Total Assets Ratio:

Liquid Assets mean the Cash amount that the bank hold in the fiscal year so that it can perform its financial
activities efficiently. It is very important for any financial institution to hold cash in its hand.

Formula: liquid assets / total assets

Year 2021 2020 2019 2018

Calculation 381473831139/ 337372467213/ 307201254043/ 247995751823/

666450016576 631313148102 497894460466 463976851114

Result 57.23% 53.43% 61.700% 53.45%

Liquid Assets to Total Assets Ratio

62.00% 61.70%

60.00%
58.00% 57.23%
56.00%
53.43% 53.45%
54.00%
52.00%
50.00%
48.00%
2021 2020 2019 2018

Interpretation:
We know that for any financial institution, it is very essential to hold enough cash amounts to operate daily
financial activities efficiently like- providing loans, repayment of depository amounts, purchasing
securities, and so on. So, it is better for an institution if the percentage of liquid assets to total assets is more.
In the case of Rupali Bank, we can see the percentage has increased since 2019 which is the highest figure
(61.70%). It has collapsed the financial market like many others. People withdrew their money and barely
could deposit money. As a result, we have seen a decreasing trend in the line. But the liquidity they are
holding is enough.

14
3.2 Total Deposits to Total Assets
The term Deposit refers to the amount of money that the customer put in the Bank within their individual
amount. It could have different types of maturity. After the maturity, the bank is promised to repay the
principal amount with the interest amount. For a Bank, Deposit is a liability because you have to repay it
back to its owner. It is like a debt to the bank.
Formula: total deposit / total assets

Year 2021 2020 2019 2018

Calculation 376430602308/ 532299901188/ 414624250170/ 389549479401/

666450016576 631313148102 497894460466 463976851114

Result 56.48% 84.31% 83.27% 83.95%

Total Deposits to Total Assets

90 84.31 83.27 83.95
80
70
60 56.48
50
40
30
20
10
0
2021 2020 2019 2018

Interpretation:
We already know that the deposit amount is like a debt to the bank which it has to pay back to its customer
after maturity with interest. However, it is the main earning way of a Bank. The more the depository amount
the more the bank’s earnings and net profit income go high. But if the Bank’s assets are mostly dependent
on deposits, then it is not good for the bank. Here, we can see in 2018 the ratio was 83.95% where the ratio
decreased in 2019 which was 83.27% and then it started again to increase in 2020 where the ratio was
84.31%, and decrease again in 2021 by 56.48%.

15
3.3 Profitability Ratio
1) We know, Profitability = Net Income / Average total Assets
2021 2020 2019 2018
Net Income 5,494,157,427 4,364,181,553 2,635,162,139 2,224,726,816
Net Interest
21,053,274,613 23,264,862,526 26,924,949,586 22,970,784,588
Income
Total Assets 424,914,436,281 388,593,904,766 356,953,394,037 326,940,438,782
Total
Shareholder 5,494,124,449 4,364,175,579 2,635,158,749 2,224,721,063
Equity
Interest
Earning 2,862,413,580 3,747,853,965 2,361,557,548 2,151,048,490
Assets
Risk
Weighted 284,459,122,970 266,897,404,404 245,024,807,640 228,564,323,030
Assets
Calculations 5,494,157,427/ 4,364,181,553/ ( 2,635,162,139/ 2,224,726,816/
(388,593,904, 356,953,394,037 (3 (278,067,080,739+3
766+424,914,4 +388,593,904,7 26,940,438,782+ 26,940,438,782/2)
36,281/2) 66/2) 356,953,394,037/
2)
Result (%) 1.25% 1.18% 0.810% 0.785%

Profitability Ratios

1.5 1.25 1.18

1 0.81 0.78

0.5
0
2021 2020 2019 2018

Interpretation: We can see that over the last 4 years, profitability of Rupali Bank is increasing in terms of
net income and average total assets. In 2018 it was 0.78% and in 2019 it has increased to 0.81%, again in
2020 it raised up to 1.18% an in recent year in 2022 it’s up to 1.25% Which means the net income of Rupali
bank is good against its asset. That means Rupali Bank is able to efficiently generate profit by using its
assets.

16
2) We know, Profitability = Net Income / Average Shareholder Equity

2021 2020 2019 2018

Calculations 4,164,181,553/ 3,635,162,139/
4,494,157,427/ (4, 2,224,726,816/
(2 (2
364,175,579+5,49 (3,458,668,899+
,635,158,749+4, ,224,721,063+2,
4,124,449/2) 2,224,721,063/2)
364,175,579/2) 635,158,749/2)
Result (%)
131.26% 128.75% 101.24% 88.28%

Profitability Ratios

140 131.26 128.75

120
101.24
100 88.28
80
60
40
20
0
2021 2020 2019 2018

Interpretation: We can see that over the last 4 years, profitability of Pubali Bank is increasing in terms of
net income and average shareholder equity. Back in 2018 it was 88.28% in 2019 it increased to 101.24%
also in 2020 it increased to 128.75% lastly in 2021 it has a percentage of 131.26%Which means the net
income of bank is more against its shareholder equity. That means Pubali Bank is able to efficiently generate
profit by using its equity.

17
3) We know, Profitability = Net Interest Income / Average Interest Earning Assets

2021 2020 2019 2018

Calculations 21,053,274,613/ 23,264,862,526/( 26,924,949,586/ ( 22,970,784,588/ (

(3,747,853,965+2 2,361,557,548+3 2,151,048,490+2 3,030,038,998+2
,862,413,580/2) ,747,853,965/2) ,361,557,548/2) ,151,048,490/2)

Results (%) 7.61% 6.36% 11.93% 8.86%

Profitability Ratios
12 11.93
10 8.86
7.61
8 6.36
6
4
2
0
2021 2020 2019 2018

Interpretation: We can see that over the last 4 years, profitability of Pubali Bank has increased in
2019 in terms of net interest income and average interest earning assets. After 2019 it decreased
again which means the net interest income of bank is less against its interest earning assets. And
again in 2021 it has increased by 7.61% That means Pubali Bank is able to efficiently generate
profit by using its interest earning assets

18
4) We know, Profitability = Net Income / Average Risk Weighted Assets
2021 2020 2019 2018
Calculation 5,494,157,427/(2 4,364,181,553/(2 2,635,162,139/(2 2,224,726,816/
66,897,404,404+ 45,024,807,640+ 28,564,323,030+ (192,350,678,263
284,459,122,970/ 266,897,404,404/ 245,024,807,640 +228,564,323,030
2) 2) /2) /2)

Result (%) 2% 1.7% 1.11% 1.057%

2
2 1.7
1.5 1.11 1.057
1
0.5
0
2021 2020 2019 2018

Interpretation: We can see that over the last 4 years, profitability of Rupali Bank is increasing
in terms of net income and average risk weighted assets. Back in 2018 it was 1.057% in 2019
1.11% in 2020 it increased to 1.7% and lastly in 2021 its almost 2%.Which means the net income
of bank is good against its risk weighted assets and Bank is able to efficiently generate profit by
using its risk weighted assets.

19
3.4 Efficiency Ratio
The efficiency ratio is typically used to analyze how well a company uses its assets and liabilities
internally. An efficiency ratio can calculate the turnover of receivables, the repayment of liabilities,
the quantity and usage of equity, and the general use of inventory and machinery.
Efficiency Ratio: Operating Expense / Revenue

Year 2021 2020 2019 2018

Calculation 12632496172/ 936674626/ 9422706344/ 8213310717/

22429986788 19534225104 18776990423 17873229530

Result 56.31 47.50 50.18 45.95

Efficiency Ratio
60 56.31
47.5 50.18 45.95
40

20

0
2021 2020 2019 2018

Interpretation: An ideal efficiency ratio is 50% or less, which means that the bank generates $2
or more for every $1 it spends. However, most banks' efficiency ratios are higher than that. Here
we can see that efficiency ratios increased from 2018 gradually till 2021, in 2019 it was 5018%,
in 2019 it decreased to 47.5% and again in 2021 it increased to 56.31% which is good for Rupali
Bank.

20
3.5 Asset Quality
Bank’s one of the main assets is the loan that the bank gives to the borrowers. Asset quality ratios
imply the creditworthiness of a bank. Most of the financial crisis happens because of unregulated
loans. The whole economy will tend to collapse when banks loan default.

1. Loan Loss Provision to Gross Loan Ratio: Loan loss provision/ Gross loan
Year 2021 2020 2019 2018
Calculation 0/ 0/300133136228 851133/273520289757 589693/
350407454307 256690433175
Result 0 0 3.11 2.29

Loan Loss Provision to Gross Loan Ratio

4
3.11
3
2.29
2

1
0 0
0
2021 2020 2019 2018

Interpretation: Lowering this ratio is good for banks because banks can balance the loan loss with
the income. In 2018 the ratio was 2.29% but it increases to 3.11% it is great that the bank has
achieved 0% in 2020 and 2021.

2. Loan loss to pre-provision Income Ratio: Loan loss Provision/pre-provision income

Year 2021 2020 2019 2018
Calculation 1544301000/ 461149107/ 2525186311/ 1301692607/
9986472993 8626187851 9823158213 9273379504

Result 15.46% 5.34% 25.106% 1.40%

21
 Loan loss to pre-provision Income Ratio
30
25.106

20 15.46

10 5.34 4.5

0
2021 2020 2019 2018

Interpretation: A higher provision for loan loss is a bad sign for a bank because it indicates bank
generate. Higher loss in terms of getting back loans from the borrowers. In the graph, we can see
that the value of loan loss provision to gross loan ratio is ups and down over the years. In 2018 the
value was 1.40% which reached 15.46% in 2021.

3. loan loss reverses to gross loan ratio: loan loss reserves / gross loan
Year 2021 2020 2019 2018
Calculation 1544301000/ 461149107/ 2525186311/ 1301692607/
350407454307 300133136228 273520289757 256690433175

Result 4.407% 1.53% 9.23% 5.07%

loan loss reverses to gross loan ratio

10 9.23
8
6 4.407 5.07
4 1.53
2
0
2021 2020 2019 2018

Interpretation: Lower loan loss reserves to gross loan ratio better the bank. It indicates banks
need to give lower allowance on loan loss. In 2018, the value was 4.5% which become 9.23% in 2019.
It decreases to 1.53% in 2020 and 4.407% in 2021.

22
3.6 Capital Adequacy
Capital adequacy ratio, also known as capital-to-risk weighted asset ratio, is a credit solvency
management method used by banking authorities to assist banks stay financially healthy (CRAR).
Banking authorities frequently require banks to hold a specific amount of their debt exposure as
assets.

Capital Adequacy Ratio: Common equity / Risk-weighted assets

Year 2021 2020 2019 2018
Calculation 5,494,124,449/ 4,364,175,579/ 2,635,158,749/ 2,224,721,063/
284,459,122,97 266,897,404,404 245,024,807,640 228,564,323,030

Result 1.43% 1.33% 1.01% 0.87%

Capital Adequacy Ratios

1.5 1.43
1.33
1.01
1 0.85

0.5

0
2021 2020 2019 2018

Interpretation: Here, we can see that Capital Adequacy is increasing over the years. In 2018 it
was 0.85% then in 2019 it increases and become 1.01%. And in 2021 it increases again and become
1.33% lastly in 20221 it has increased up to 1.43%

23
Chapter-4
4.1 Findings
• Increase in Liquid Assets: Rupali Bank has observed a notable increase in the percentage
of liquid assets to total assets since 2019. This increase is particularly significant, reaching
the highest recorded figure of 61.70%.
• Yearly Fluctuations in Deposit Ratio: In 2018, the deposit ratio stood at 83.95%,
indicating that a significant portion of the bank's assets were funded by deposits. However,
this ratio decreased slightly in 2019 to 83.27%. Subsequently, there was a rise in the deposit
ratio in 2020, reaching 84.31%. However, in 2021, there was a substantial drop, with the
deposit ratio plummeting to 56.48% again.
• Improvement in Net Income Percentage relation to using its assets: Rupali Bank's net
income percentage has experienced gradual growth over the specified period. In 2018, the
net income was 0.78% of average total assets, which increased to 0.81% in 2019.
Furthermore, in 2020, the net income percentage saw a more significant rise, reaching
1.18%. By 2022, this percentage further improved to 1.25%.
• Increase in Net Income Percentage in relation to average shareholder equity: The net
income percentage about average shareholder equity has experienced substantial growth
over the specified period. In 2018, this percentage stood at 88.28%, and it rose to 101.24%
in 2019. The trend continued with a further increase to 128.75% in 2020, culminating in
the highest recorded percentage of 131.26% in 2021.
• Increase and Decrease in Net Interest Income: In 2019, there was an increase in
profitability as indicated by the net interest income relative to average interest-earning
assets. However, this upward trend did not persist, as the bank experienced a subsequent
decrease in profitability after 2019.
• Steady Increase in Net Income Percentage Relation to average risk-weighted Assets:
The net income percentage of average risk-weighted assets has shown a steady and
significant increase over the specified period. Starting from 1.057% in 2018, it rose to
1.11% in 2019. Subsequently, there was a more substantial increase to 1.7% in 2020. The
trend continued with a further rise to nearly 2% in 2021.

24
• Efficiency ratios: A gradual increase from 2018 to 2021. In 2019, the ratio started at
50.18%, dropped to 47.5%, and then rose again in 2021 to 56.31%. This trend reflects
positive progress in Rupali Bank's efficiency.
• Asset Quality: Reducing this ratio benefits banks by helping to offset loan losses with
income. The ratio was 2.29% in 2018, climbed to 3.11%, and notably reached 0% in both
2020 and 2021, showcasing the bank's success.
• Loan Loss to Pre-Provision Income Ratio: In 2018, the loan loss provision to gross loan
ratio was 1.40%. Subsequently, it escalated significantly, reaching 15.46% in 2021.
• Capital Adequacy: It has shown a continuous increase over time. It began at 0.85% in
2018, grew to 1.01% in 2019, further increased to 1.33% in 2021, and finally reached
1.43% in the latest year, demonstrating a positive upward trend.

25
4.2 Conclusion
In the current landscape, the banking industry has become significantly more competitive. It is
evident that a considerable number of customers readily regard Pubali Bank Limited favorably
compared to other banks. Nevertheless, it's essential to recognize that customers have limited
options when it comes to selecting banks for a genuine comparison of Consumer Banking services
offered by Pubali Bank Limited.

The bank has achieved noteworthy positive contributions to Bangladesh's economy within a
relatively brief period, evident from its progressively increasing profits. A prudent approach
involves assessing ratios about previous years, enabling analysts to gauge the bank's standing for
that particular year, as undertaken in this study.

This investigation has revealed several key insights. We find that Pubali Bank Limited's
management of asset quality, efficiency, and liquidity holds a moderate position. However,
concerning profitability, there is room for improvement as the bank faces challenges in efficiently
generating returns using its assets, equity, interest-earning assets, and risk-weighted assets. This
necessitates proactive measures from Pubali Bank Limited to avert worsening circumstances. The
bank should prioritize effective and efficient customer service to ensure enhanced services.

26
4.3 References

https://rupalibank.com.bd/product_details_deposit.php?product_info=4
https://rupalibank.com.bd/product_details_deposit.php?product_info_pk=6
https://rupalibank.com.bd/admin_web/news/RupaliBankAnnualReport2021-43337.pdf
https://rupalibank.com.bd/admin_web/news/Annual2929129291.pdf
https://www.wsj.com/market-data/quotes/BD/XDHA/RUPALIBANK/financials/annual/balance-sheet
https://www.thebankerdatabase.com/index.cfm?fuseaction=bank_details.reports&bank_id=3937
https://fid.portal.gov.bd/sites/default/files/files/fid.portal.gov.bd/page/aaf64387_6052_44ea_8095_099158
0188f5/RBL.pdf
https://www.bcblbd.com/bcblbd/Annual%20Report%20%26%20Financial%20Statement/Annual%20Rep
ort_2018_pdf

27