:Course: Section

-Group Project on

-Submitted to

Lecturer
School of Business
North South University

-Submitted By

Name ID

Date of Submission: 10th May, 2022

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Table of Content
Content Page

1.Acknowladgement

2.Introduction

3.Company Background

4. Liquidity Ratio

5. Financial Risk Ratio

6. Efficiency Ratio

7. Profitability Ratio

8. Market Position Ratio

9. Capital Adequacy Ratio

10. Dupoint Analysis

11. Suggestion

12. Appendix

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Acknowledgement

It is a matter of pleasure and honor for us to have the opportunity to submit my group assignment
as a part of our academic activities. We have put our maximum effort in this group project. The
primary goal of this undertaking report is comparing about the financial condition of “Dutch
Bangla Bank Limited vs Pubali Bank Limited.
For making this assignment we are like to gratitude our group members. This report can’t be
completed in due date without the efforts and cooperation of group our members. In this project,
we are also include Controversy of DBBL and Pubali Bank and doing different ratio analysis of
those banks, Suggestion, Using Hypothesis and using some official data.

We additionally got the chance to encounter the reasonable materials contrast with whatever we
had learnt hypothetically in this course. We have shown our uttermost gratitude for the
opportunity you gave us to implement our analysis skill, creative thinking and interpretation
.skills that will help us to building our future career

.We, therefore, would like to place this report to you for your kind consideration

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Introduction:

In this report we are doing financial analysis of two different banks those are the giant’s
organization in our country and so much popular among the people. One is public bank and
another is private bank. As:

-Dutch Bangla Bank Limited (DBBL)

-Pubali Bank Limited

We are finding all the data of those companies for calculating different types of ratio and
analysing the financial condition. So that, on this point we can reach a solution for those bank.

We are calculating liquidity condition both of the companies, Find out the financial risk,
Efficiency, profitability of current situation, and find the market position and capital adequacy.

Company Background:

Dutch Bangla Bank Limited (DBBL):

DBBL is one of the oldest bank is the private banking sectors in Bangladesh. It’s a joint venture
company between Dutch company and local parties of Bangladesh. The founded of the Dutch
Bangla Bank limited is directly under the banking act 1991 and the incorporate in 1993 public
limited company act in Bangladesh. It contribute a big percentage of money to our GDP. In our
country and outside the country it is so much popular among the people for its accurate activities.

Pubali Bank Limited:

One of the most important government bank in our country is Pubali bank limited. However, it’s
also a private bank but overall control by the government of Bangladesh. It is a commercial bank
and has many branches over the country. It was founded 63 years ago in 1959 in Dilkusha
commercial are in Dhaka under the act of banking law 1913. It was archive constantly 20%
growth rate in few years.

Liquidity Ratio:

:Current ratio

Current Rati o
1.250
1.210
Axis Title

1.170
2020 2021
DBBL 1.21374739722452 1.20848360977233
Pubali Bank 1.20230148955009 1.25025333053527

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From the graph, we are calculating 2 years current ratio based on current asset and liabilities between
DBBL and Pubali bank limited. We found that, in 2020 and 2021 the current ratio of DBBL is 1.214 and
1.208. on the other hand Pubali bank ratio is 1.2023 and 1.250. That means Pubali bank has the best
possible current ratio and the more liquid company rather than DBBL. It was a profitable situation for
the Pubali Bank Limited. On the other hand It’s not bad ratio for the company DBBL. Which means the
liquidity of the company has fall down. So DBBL company limited must improve their current ratio
.condition

Quick Ratio:

Quick Ratio
1.195
1.175
1.155
Axis Title

1.135
2020 2021
DBBL 1.1771885762596 1.17520730481418
Pubali Bank 1.15804289298738 1.20316495323642

In this Quick we are calculating 2 years ratio based on company short time liquidity position of current
assets and liabilities between DBBL and Pubali bank limited. We found that, in 2020 and 2021 the quick
ratio of DBBL is 1.177 and 1.175. Beside Pubali bank ratio is 1.1580 and 1.203. That means Pubali bank
has the best possible quick ratio and ability to meet the short time obligations for the company rather
.than DBBL

Cash Position Indicators:

Cash Position Indicator

0.110
0.090
0.070
0.050
Axis Title

0.030
0.010
2020 2021
DBBL 0.112762206886654 0.0889582145206813
Pubali Bank 0.0563666849567564 0.0535018893247977

From the excel file, we found that DBBL has the higher position of cash ratio in 2020 and 2011 rather
than pubali bank. It has the higher capacity of cash than pubali. It’s mean the company has enough cash
.to used

Financial Risk Ratio:

Debt Ratio:

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 Debt Ratio
0.937
0.933
0.929
Axis Title

0.925
2020 2021
DBBL 0.932447799439887 0.928604498542358
Pubali Bank 0.930925939799051 0.936855341097632

In this graph, we can clearly see that the debt ratio of DBBL has going down and Pubali bank limited has
going up. It was a bad situation for Pubali Bank limited. More debt is not good for the Company. We
found that, in 2020 and 2021 the debt ratio of DBBL is 0.932 and 0.929. On the other hand Pubali bank
ratio is 0.9309 and 0.937.

Debt to equity Ratio:

Debt to equity Rati o

1.300
0.900
0.500
Axis Title

0.100
2020 2021
DBBL 1.23373161069118 1.10842718189518
Pubali Bank 0.446891166106158 0.754504905784258

In this graph, we can also see that the debt to equity ratio of DBBL has going straight up and Pubali bank
limited has straight going down. It was a good situation for Pubali Bank limited. That’s means company
has limited debts rather than equity. In this case, we found that, in 2020 and 2021 the debt to equity
ratio of DBBL is 1.234 and 1.108. On the other hand Pubali bank ratio is 0.4469 and 0.755.

Equity Multiplier:

Equity Multiplier
15.750
14.750
13.750
Axis Title

12.750
2020 2021
DBBL 14.6436598050589 13.9153477106336
Pubali Bank 14.4772150346716 15.8366525989482

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In the equity multiplier ratio, we found that DBBL curve ratio has going down in 2020 and 2011. Other
hand, pubali bank curve ratio has going up forward. That measures Pubali Bank has much assets
are financed through stockholders' equity rather than DBBL. It’s a good sign for the Pubali bank
.limited

Efficiency Ratio:
Dividend per share:

DPS(Dividend per share)

0.65000
0.45000
0.25000
Axis Title

0.05000
2020 2021
DBBL 0.00820956234279554 0.00879214085519224
Pubali Bank 0.545692752595445 0.69643953503436

In this DPS we are calculating 2 years ratio analysing based on dividend position and outstanding of
share in market between DBBL and Pubali bank limited. In this case we found that, in 2020 and 2021 the
DPS ratio of DBBL is 0.00821 and 0.00879. Beside Pubali bank ratio is 0.5457 and 0.696. That means
.Pubali bank has the best possible DPS ability rather than DBBL

Dividend Yield:

Dividend Yield
4.25%
3.25%
2.25%
Axis Title

1.25%
0.25%
2020 2021
DBBL 0.0218 0.0234
Pubali Bank 0.045 0.047

This financial ratio we found that percentage of both of the company’s share price that it pays out in
dividends for two year. In this case we found that, in 2020 and 2021 the Dividend yield ratio of DBBL is
2.18% and 2.34%. That was the lower position of Dividend yield for DBBL. Beside Pubali bank ratio is
.4.5% and 4.70%. That means Pubali bank has the best possible Dividend yield ratio rather than DBBL

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Probability Ratio:

Net profit margin:

Net Profi t Margin

0.425
0.325
0.225
Axis Title

0.125
0.025
2020 2021
DBBL 0.389162084996551 0.358220656684426
Pubali Bank 0.163008098201757 0.190942983850307

To find the actual situation of the company probability ratio is most important. We calculating
the financial data of DBBL and Pubali bank limited to find out the net profit margin. In this point
in 2020 and 2021 we found DBBL ratio is 0.389 and 0.358. which means DBBL has the good
postion rather than Pubali bank.

ROE:

ROE Ratio
0.170
0.150
0.130
0.110
0.090
0.070
Axis Title

0.050
0.030
0.010
2020 2021
DBBL 0.168432279929239 0.147474030218396
Pubali Bank 0.0947310760949144 0.109375385586616

In this graph, we can see that DBBL has the highest ROE rather than Pubali Bank in both 2
years. We got DBBL roe ratio in 2020 and 2021 those are 0.168 and 0.147. On the other hand,
the pubali bank roe is 0.0947 and 0.109. So that DBBL has the good position in this place.

ROA:

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 ROA Rati o
0.01100
0.00900
0.00700
0.00500
Axis Title

0.00300
0.00100
2020 2021
DBBL 0.011377971154577 0.0105289823394218
Pubali Bank 0.00654346005308079 0.00690647141518187

By the ROA we can understand the value of the Assets and net income of both of the
companies.in this case DBBL has the highest ROA rather than Pubali bank.

Market Position Ratio:

P/E Rati o
6.500
4.500
2.500
Axis Title

0.500
2020 2021
DBBL 6.45297287463289 7.31146562520747
Pubali Bank 4.37739432075801 4.14637425062247

By this ratio we can know the actual position of market of both companies. From the graph we
got that, DBBL P/E ratio is higher than the Pubali bank P/E ratio. In 2021 and 2020 we got the
ratio of DBBL is 6.453 and 7.311. on the other hand, Pubali bank ratio is 4.377 and 4.146. That’s
means DBBL has the good position in the market place.

Capital Adequency Ratio

1.825
1.725
1.625
Axis Title

1.525
2020 2021
DBBL 1.72781631938739 1.61027667261716
Pubali Bank 1.7915764159349 1.66941631428523

From the graph, we found 2 years capital adequacy ratio based on total assets of both of banks with the
risk assets. We found that, in 2020 and 2021 the capital adequacy ratio of DBBL is 1.728 and 1.610. On

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the other hand Pubali bank ratio is 1.7916 and 1.669. That means Pubali bank has the best possible
capital adequacy ratio and the more risk free assets rather than DBBL. It was a good strength situation
for the Pubali Bank Limited. Other side It’s not bad ratio for the company DBBL. So DBBL limited must
.improve their capital adequacy ratio condition

Du point Analysis of DBBL: From the overall graph we can say that DBBl has the Positive
ROE and ROA position in this financial field. It measure that DBBL has the solid and proper
amount of assets and shareholders’ equity with the side of net income in 2021 and 2021.

Du point Analysis of Pubali Bank: In this point Pubali Bank has the lowest ROE and ROA
rather than DBBL. That’s means this bank has not hold the perfect position in the field of
finance. For this reason it should be re-maintain their Assets position and equity position with net
profit.

Suggestion:

Overall if we can say, DBBL has the positive situation in the field of bank rather than Pubali
bank. Because analysis all of the graph we find that most of the graph DBBL has the top position
and pubali bank has a minimum position. For this reason Pubali Bank should re-maintain their all
the section of the banking sectors like as solid investment, perfect lone, maintain their fixed
assets, remove liabilities and hold cash for transaction to improve their condition.

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