Background of Banking in Bangladesh:

After the Liberation War of 1971, the Dhaka branch of “State Bank of Pakistan” was
immediately renamed ‘Bangladesh Bank’ and marked as the Central Bank of Bangladesh. There
were 17 other large banks, 14 smaller commercial banks and 3 foreign banks in the country. At
the same time, all banks were nationalized and renamed. Foreign banks were given permission to
continue their operation. The insurance companies were also turned into state-owned companies.
The government understood their potential to the economy of the country.

As the government focused more on agriculture in the late 70’s and the 80’s, the banks changed
their lending strategies keeping the agriculture sector in mind. Bangladesh Krishi Bank, a bank
specializing in the sector of agriculture, made sure that loan opportunities for farmers and
fishermen were increased.

OBJECTIVES OF THE STUDY:

The main objective of the study is to know the ratio analysis of 6 Bank. and to have an overall
idea on how it operates in the competitive markets deliver with customer’s satisfaction and retain
them.

METHODOLOGY OF THE STUDY:

This study is not definite and it depends on the responses collected that is very much theoretical
and varies from person to person situation and as well country to country. This study is mainly
focused on 6 Bank in Bangladesh.

STUDY DESIGN:
The study is analytical in nature. It was conducted using both quantitative & qualitative
instruments. Depth interviews as well as assessment of different historical data were used to
analyze the performance of 6 Bank.

1
DATA COLLECTION:
In order to make the Term Paper more meaningful and presentable, two sources of data and
information have been used widely. Those are:

Primary data

Secondary Data

Primary Sources:

The primary sources include interviews with the customers.

 Practical work exposures from the different desks of the department of the branch
covered.
 Relevant file study as provided by the officers concerned.
 Face to face conversation with the customers.
 On the job observation of the researcher.
 Personal interviews with the employees. Self-developed questionnaire has been used for
interview.

Secondary Sources:

 Different manual and synopsis.

 Various books, articles, compilation etc.
 Annual Report of 6 Banks.
 Internal Publications of 6 Banks.
 The website of 6 Banks.
 The website of Bangladesh Bank (www.bangladesh-bank.org)
 Articles published on magazines and newspapers
 Annual Reports of different banks
 Bangladesh Bank Reports and several websites
 Prior Research Reports

2
Limitation of the study:

The Term Paper focuses only the ratio analysis of 6 Banks. We have been provided with all
necessary information at 6 Banks, but due to the exhaustive nature of the study some were
incomplete. Some problems may be termed as limitation of the study. They are as follows:

 Relevant papers and documents were not available sufficiently.

 Many procedural matters were written from my own observation, which may also vary
from person to person.
 They do not provide all the information for their confidential purpose.
 Although they have tried their best to help us. Their nature of job is such that give them
little time to discuss.

3
3 private commercial banks ratio analysis:

About Dhaka Bank Limited:

Bangladesh economy has been experiencing a rapid growth since the '90s. Industrial and
agricultural development, international trade, inflow of expatriate Bangladeshi workers'
remittance, local and foreign investments in construction, communication, power, food
processing and service enterprises ushered in an era of economic activities. Urbanization and
lifestyle changes concurrent with the economic development created a demand for banking
products and services to support the new initiatives as well as to channelize consumer
investments in a profitable manner. A group of highly acclaimed businessmen of the country
grouped together to responded to this need and established Dhaka Bank Limited in the year
1995.
The Bank was incorporated as a public limited company under the Companies Act. 1994. The
Bank started its commercial operation on July 05, 1995 with an authorized capital of Tk. 1,000
million and paid up capital of Tk. 100 million. The paid up capital of the Bank stood at Tk
2,659,597,763 as on March 31, 2010. The total equity (capital and reserves) of the Bank as on
March 31, 2010 stood at Tk 6,036,368,754.The Bank has 62 Branches, 3 SME Service Centers, 6
CMS Units, 2 Offshore Banking Unit across the country and a wide network of correspondents
all over the world. The Bank has plans to open more Branches in the current fiscal year to
expand the network.

The Bank offers the full range of banking and investment services for personal and corporate
customers, backed by the state–of–the-art technology and a team of highly motivated
Professionals.
As an integral part of our commitment to Excellence in Banking, Dhaka Bank now offers the full
range of real-time online banking services through its all Branches, ATMs and Internet Banking
Channels.
Dhaka Bank Ltd. is the preferred choice in banking for friendly and personalized services,
cutting edge technology, tailored solutions for business needs, global reach in trade and
commerce and high yield on investments.

4
Mission:
To be the premier financial institution in the country providing high quality products and
services backed by latest technology and a team of highly motivated personnel to deliver
Excellence in Banking.

Vision:
At Dhaka Bank, we draw our inspiration from the distant stars. Our team is committed to assure
a standard that makes every banking transaction a pleasurable experience. Our Endeavour is to
offer you razor sharp sparkle through accuracy, reliability, timely delivery, cutting edge
technology, and tailored solution for business needs, global reach in trade and commerce and
high yield on your investments.

1. Dhaka Bank Limited 5 Years Ratio

Analysis:

2008 2009 2010 2011 2012 Growth

Net Interest 4.60 4.56 5.24 4.30 4.10 (5)

Margin
Credit / Deposit 87.21 86.85 90.30 89.10 83.91 (6)
Ratio (%)
Current Ratio 1.28 2.10 1.97 2.09 2.57 23
(Times)
Return on Equity 20.97 19.32 25.52 23.49 7.24 (69)
(ROE) %
Return on Assets 1.18 1.29 2.00 2.22 0.59 (73)
(ROA) %
Cost of Deposit 9.40 8.68 7.06 9.33 10.63 14
(%)
Cost to Income 34.82 33.64 30.87 30.62 39.67 30
ratio (%)
Operating Profit 2.82 3.04 3.46 3.48 2.22 (36)
Per Employee

5
Operating Profit 56.30 56.21 68.60 70.84 45.40 (36)
Per Branch
Number of 45 50 56 61 71 16
Branches
Number of 898 924 1,109 1,240 1,455 17
Employees
Number of 8,198 10,530 43,256 45,438 44,445
Shareholders

Graphs:

6
7
Comparison:
Net Interest Margin: In 2008 = 4.60, 2009 = 4.56, 2010 = 5.24, 2011 = 4.30, 2012 = 4.10.

Highest Net Interest Margin in 2010 = 5.24

Credit Deposit Ratio (%): In 2008 = 87.21, 2009 = 86.85, 2010 = 90.30, 2011 =89.10, 2012 =
83.91

Highest Credit / Deposit Ratio (%) in 2010 = 90.30

Current Ratio: In 2008 = 1.28, 2009 = 2.10, 2010 = 1.97, 2011 = 2.09, 2012 = 2.57.

Highest Current Ratio in 2012 = 2.57

Return on Equity: 2008 = 20.97, 2009 = 19.32, 2010 = 25.52, 2011 = 23.49, 2012 = 7.24

Highest Return on Assets in 2010 = 25.52

Return on Assets: In 2008 = 1.18, 2009 = 1.29, 2010 = 2.00, 2011 = 2.22, 2012 = 0.59.

Highest Return on Assets in 2011 = 2.22

Cost of Deposit: In 2008 = 9.40, 2009 = 8.68, 2010 = 7.06, 2011 = 9.33, 2012 = 10.63

8
Highest Cost of Deposit in 2012=10.63

Cost to Income ratio (%):2008 = 34.82, 2009 = 33.64, 2010 = 30.87, 2011 = 30.62, 2012
=39.67

Highest Cost to Income ratio in 2012 = 39.67

Operating Profit Per Employee: In 2008 = 2.82, 2009 = 3.04, 2010 = 3.46, 2011 = 3.48, 2012
= 2.22.

Highest Operating Profit Per Employee in 2011 = 3.48

Operating Profit per Branch: In 2008 = 56.30, 2009 = 56.21, 2010 = 68.60, 2011 = 70.84,
2012 = 45.40

Highest Operating Profit Per Branch in 2011 = 70.84

Number of Branches: In 2008 = 45, 2009 = 50, 2010 = 56, 2011 = 61, 2012 = 71

Highest Number of Branches in 2012 = 71

Number of Employees: In 2008 = 898, 2009 = 924, 2010 = 1,109, 2011 =1,240, 2012 = 1,455

Highest Number of Employees in 2012 = 1,455

Number of Shareholders: In 2008 = 8,198, 2009 = 10,530, 2010 = 43,256, 2011 = 45,438, 2012
= 44,445

Highest Number of Shareholders in 2011 = 45,438

9
ABOUT AB BANK LIMITED:
AB Bank Limited, the first private sector bank was incorporated in Bangladesh on 31st
December 1981 as Arab Bangladesh Bank Limited and started its operation with effect from
April 12, 1982.

AB Bank is known as one of leading bank of the country since its commencement 31 years ago.
It continues to remain updated with the latest products and services, considering consumer and
client perspectives. AB Bank has thus been able to keep their consumer's and client's trust while
upholding their reliability, across time.

During last 31 years AB Bank extended services at home and abroad. Currently AB Bank has 86
local branches, one foreign branch in Mumbai, India; 6 subsidiary companies including one
exchange company in UK, Off-shore Banking Unit and Custodial services. The Bank re-opened
the Bank’s Representative Office at Yangon, Myanmar and at London, UK extending its foreign
operations.

In spite of adverse market conditions, AB Bank Limited which turned 31 this year, concluded the
2012 financial year with good results. The Bank's consolidated profit after taxes amounting to
Taka 146 cr which is 5% higher than that of 2011. The asset base of AB Bank Limited and Its
subsidiaries grew by 14% from 2011 to stand at over Tk 17,552 cr as at the end of 2012.

The Bank showed strong growth in loans and deposits. Deposit of the Bank rose by Tk. 2,408 cr
ie., 21% while the diversified Loan Portfolio grew by over 11% during the year and recorded a
Tk 1,119 cr increase. Foreign Trade Business (Import & Export) handled was Tk 16,615 cr
indicating a growth of over 21% in 2012.

The Bank maintained its sound credit rating in 2012. The Credit Rating Agency of Bangladesh
Limited (CRAB) awarded the Bank an AA3 rating in the long term and ST-2 rating in the short
Term.
AB Bank believes in modernization. The bank took a conscious decision to rejuvenate its past
identity – an identity that the bank carried as Arab Bangladesh Bank Limited for twenty five long

10
years. As a result of this decision, the bank chose to rename itself as AB Bank Limited and the
Bangladesh Bank put its affirmative stamp on November 14, 2007.

The Bank decided to change its traditional color and logo to bring about a fresh approach in the
financial world; an approach, which like its new logo is based on bonding, and trust. The bank
has developed its logo considering the contemporary time. The new logo represents our cultural
"Sheetal pati" as it reflects the bonding with its clientele and fulfilling their every need. Thus the
new spirit of AB is "Bonding". The Logo of the bank is primarily "red", as red represents
velocity of speed and purity. The new logo innovates, bonding of affiliates that generate changes
considering its customer demand. AB Bank launched the new Logo on its 25th Anniversary year.

AB Bank commits to nation to take a lead in the Banking sector through not only its strong
financial position, but also through innovation of products and services. It also ensures creating
higher value for its respected customers and shareholders. The bank has focused to bring services
at the doorstep of its customers, and to bring millions into banking channels those who are
outside the mainstream banking arena. Innovative products and services were introduced in the
field of Small and Medium Enterprise (SME) credit, Women's Entrepreneur, Consumer Loans,
Debit and Credit Cards (Local & International), ATMs, Internet and SMS Banking, Remittance
Services, Treasury Products and Services, Structured Finance for Corporate, strengthening and
expanding its Islamic Banking activities, Investment Banking, specialized products and services
for NRBs, Priority Banking, and Customer Care. The Bank has successfully completed its
automation project in mid 2008. It envisages enabling customers to get banking services within
the comfort of their homes and offices.

Mission:
"To be the best performing bank in the country"

Vision:
"To be the trendsetter for innovative banking with excellence & perfection"

11
2. Ab bank limited 5 years ratio analysis:
2004 2005 2006 2007 2008

Profitability Ratio

Return On Equity (ROE) 7.24% 10.64% 20.6% 42.3% 34.2%

Return On Assets (ROA) 0.27% 0.49% 1.11% 2.995% 2.7%

Net Interest Margin 1.57% 2.09% 1.28% 2.58% 2.75%

Net Non- Interest Margin 3.5% 3.3% % % %

Net Bank Operating Margin 1.11% 2.28% 1.48% 5.23% 5.11%

Earnings Per Share 18.19 31.26 93.08 85.37 103.18

Leverage Ratio

Debt To Equity Ratio 25.1 20.7 17.6 13.1 11.5

Debt Ratio 0.96 0.95 0.95 0.93 0.92

Time Interest Earned 0.23 0.48 0.26 0.86 0.81

Liquidity Ratio

Current Ratio 1.04 1.048 1.057 `1.076 1.087

Activity Ratio

Operating Efficiency Ratio 0.753 0.559 0.732 0.286 0.301

Employee Pro. Ratio 52382.27 10652.9 334708.4 1103474.7 9.2

Market Position Ratio

Earnings Per Share G. Rate 401.10% 71.85% 66.4% -9.03% 17.26%

Price Earnings Ratio 20.95 11.68 9.59 30 7.97

12
Graphs:

13
14
15
16
17
18
Comparison:
Profitability Ratio

Return on Equity: 2004 = 7.24%, 2005 = 10.64%, 2006 = 20.6%, 2007 = 42.3%, 2008 = 34.2%

Highest Return on Assets in 2007 = 42.3%

Return on Assets: In. 2004 = 0.27%, 2005 = 0.49%, 2006 = 1.11%, 2007 = 2.995%, 2008 =
2.7%

Highest Return on Assets in 2007 = 2.995%

Net Interest Margin: In. 2004 = 1.57%, 2005 = 2.09%, 2006 = 1.28%, 2007 = 2.58%, 2008 =
2.75%

Highest Net Interest Margin in 2008 = 2.75%

Net Non- Interest Margin: In. 2004 = 3.5%, 2005 = 3.3%, 2006 = %, 2007 = %, 2008 = %

19
Highest Net Non- Interest Margin in 2004 = 3.5%

Net Bank Operating Margin: In. 2004 = 1.11%, 2005 = 2.28%, 2006 =1.48 %, 2007 = 5.23%,
2008 =5.11 %

Highest Net Bank Operating Margin in 2007 = 5.23%

Earnings Per Share: In 2004 = 18.19, 2005 = 31.26, 2006 = 93.08, 2007 = 85.37, 2008 =
103.18

Highest Earnings Per Share in 2008 = 103.18

Leverage Ratio

Debt To Equity Ratio: In 2004 = 25.1, 2005 = 20.7, 2006 = 17.6, 2007 = 13.1, 2008 = 11.5

Highest Debt To Equity Ratio in 2004 = 25.1

Debt Ratio: In 2004 = 0.96, 2005 = 0.95, 2006 = 0.95, 2007 = 0.93, 2008 = 0.92

Highest Debt Ratio in 2004 = 0.96

Time Interest Earned: In 2004 = 0.23, 2005 = 0.48, 2006 = 0.26, 2007 = 0.86, 2008 = 0.81

Highest Time Interest Earned in 2007 = 0.86

Liquidity Ratio

Current Ratio: In 2004 = 1.04, 2005 = 1.048, 2006 = 1.057, 2007 = 1.076, 2008 = 1.087

Highest Current Ratio in 2008 = 1.087

Activity Ratio

Operating Efficiency Ratio: In 2004 = 0.753, 2005 = 0.559, 2006 = 0.732, 2007 = 0.286, 2008
= 0.301

Highest Operating Efficiency Ratio in 2004 = 0.753

20
Employee Pro. Ratio: 2004 = 52382.27, 2005 = 10652.9, 2006 = 334708.4, 2007 = 1103474.7,
2008 = 9.2

Highest Employee Pro. Ratio in 2007 = 1103474.7

Market Position Ratio

Earnings Per Share G. Rate: In. 2004 = 401.10%, 2005 = 71.85%, 2006 =66.4 %, 2007 = -
9.03%, 2008 =17.26 %

Highest Earnings Per Share G. Rate in 2004 = = 401.10%

Price Earnings Ratio: In 2004 = 20.95, 2005 = 11.68, 2006 = 9.59, 2007 = 30, 2008 = 7.97

Highest Price Earnings Ratio in 2007 = 30.

21
ABOUT Southeast Bank Limited:
Southeast Bank Limited is a private commercial bank in Bangladesh. The Bank’s journey began
when it was incorporated as a Public Limited Company on March 12, 1995. In the Registrar of
Joint Stock Companies and Firms issued the Certificate of Commencement of Business of the
Bank on the same date. The Southeast Bank received its Banking License from the Bangladesh
Bank on March 23, 1995. e Bank’s First branch was opened by Late M. Saifur Rahman, the then
Honourable Finance Minister of the Government of the People’s Republic of Bangladesh as the
Chief Guest at the commercial hub of the country at 1, Dilkusha Commercial Area, Dhaka on
May 25, 1995.[1] The incumbent Chairman of the Bank is Mr. Alamgir Kabir, FCA. Mr. M. A.
Kashem a member of the Board and Mr. Yussuf Abdullah Harun were past Presidents of the
Federation of Bangladesh Chamber of Commerce and Industries (FBCCI).[2]

At present, 32% of SEBL's employees are women that will rise to 45% over the next five years.

VISION:

To be a premier banking institution in Bangladesh and contribute significantly to the national

economy.

Mission:

High quality financial services with state of the art technology.

Fast customer services.

Sustainable growth services.

22
3. Southeast bank 5 years ratio analysis:
2006 2007 2008 2009 2010

Return On Equity (ROE) 18.41% 18.91% 11.59% 18.84% 19.41%

Return On Assets (ROA) 1.69% 1.90% 1.09% 1.66% 2.26%

Return on Deposit 1.98% 2.20% 1.29% 1.93% 2.56%

Ratio(ROD)

Return on Shareholder 18.42% 18.91% 11.59% 18.84% 16.16%

Capital

Operating Efficiency Ratio 1.42% 1.51% 1.42% 1.51% 1.73%

Loans To Deposit 89.34% 95.51% 87.73% 80.17% 85.82%

Loan Ratio 76.62% 74.82% 74.25% 68.78% 70.07%

Liquidity Ratio 10.87 9.95 10.60 11.35 7.72

Equity To Deposit 10.73% 11.66% 11.14% 10.27% 15.87%

Total Liabilities to 10.87 9.95 10.60 11.35 7.72

Shareholder Capital

23
Graphs:

24
25
26
27
28
Comparison:
Return on Equity: 2006 = 18.41%, 2007 = 18.91%, 2008 = 11.59%, 2009 = 18.84%, 2010 =
19.41%

Highest Return on Assets in 2010 = 19.41%

Return on Assets: In 2006 = 1.69%, 2007 = 1.90%, 2008 = 1.09%, 2009 = 1.66%, 2010 =
2.26%

Highest Return on Assets in 2010 = 2.26%

Return on Deposit Ratio(ROD): In 2006 = 1.98%, 2007 = 2.20%, 2008 = 1.29%, 2009 =
1.93%, 2010 = 2.56%

Highest Return on Deposit Ratio(ROD in 2010 = 2.56%

Return on Shareholder Capital: In 2006 = 18.42%, 2007 = 18.91%, 2008 = 11.59%, 2009 =
18.84%, 2010 = 16.16%

Highest Return on Shareholder Capital in 2007 = 18.91%

Operating Efficiency Ratio: In 2006 = 1.42%, 2007 = 1.51%, 2008 = 1.42%, 2009 = 1.51%,
2010 = 1.73%

Highest Operating Efficiency Ratio in 2010 = 1.73%

Loans To Deposit: In 2006 = 89.34%, 2007 = 95.51%, 2008 = 87.73%, 2009 = 80.17%, 2010 =
85.82%

Highest Loans To Deposit in 2007 = 95.51%

Loan Ratio: In 2006 = 76.62%, 2007 = 74.82%, 2008 = 74.25%, 2009 = 68.78%, 2010 =
70.07%

Highest Loan Ratio in 2006 = 76.62%

Liquidity Ratio: In 2006 = 10.87, 2007 = 9.95, 2008 = 10.60, 2009 = 11.35, 2010 = 7.72

Highest Liquidity Ratio in 2009 = 11.35

Equity To Deposit: In 2006 = 10.73%, 2007 = 11.66%, 2008 = 11.14%, 2009 = 10.27%, 2010 =
15.87%

Highest Equity To Deposit in 2010 = 15.87%

29
Total Liabilities to Shareholder Capital: In 2006 = 10.87, 2007 = 9.95, 2008 = 10.60, 2009 =
11.35, 2010 = 7.72

Highest Total Liabilities to Shareholder Capital 2009 = 11.35

30
3 Islamic banks ratio analysis:

ABOUT ISLAMIC BANK BANGLADESH LIMITED:

Islamic Bank Bangladesh Limited is a Joint Venture Public Limited Company engaged in
commercial banking business based on Islamic Shari'ah with 63.09% foreign shareholding
having largest branch network ( total 286 Branches) among the private sector Banks in
Bangladesh. It was established on the 13th March 1983 as the first Islamic Bank in the South
East Asia.

It is listed with Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. Authorized
Capital of the Bank is Tk. 20,000.00 Million and Paid-up Capital is Tk. 14,636.28 Million
having 33,686 shareholders as on 31st December 2013.

Mission:
To establish Islamic Banking through the introduction of a welfare oriented banking system and
also ensure equity and justice in the field of all economic activities, achieve balanced growth and
equitable development in through diversified investment operations particularly in the priority
sectors and less developed areas of the country. To encourage socio-economic upliftment and
financial services to the loss-income community particularly in the rural areas.

Vision:
Our vision is to always strive to achieve superior financial performance, be considered a leading
Islamic Bank by reputation and performance.

Our goal is to establish and maintain the modern banking techniques, to ensure soundness and
development of the financial system based on Islamic principles and to become the strong and
efficient organization with highly motivated professional, working for the benefit of people,
based upon accountability, transparency and integrity in order to ensure stability of financial
systems.

31
 We will try to encourage savings in the form of direct investment.

We will also try to encourage investment particularly in projects which are more likely to lead
to higher employment.

1. Islamic Bank Bangladesh limited 5 YEAR

RATIO ANALYSIS:
2008 2009 2010 2011 2012

Earnings per share 5.63 5.51 6.02 4.84 4.42

Net Asset Value Per Share 27.76 27.12 23.48 22.22 31.78

Return On Asset (ROA) 1.27% 1.34% 1.47% 1.35% 1.27%

Debt Equity Ratio 8.86 6.90 7.03 8.53 6.49

Current Ratio 1.09 1.12 1.09 1.08 1.16

Return On Equity (ROE) 19% 17% 19% 17% 14%

Gross Profit Ration 47% 49% 52% 52% 49%

Price Earnings Ratio 10.78 12.87 13.29 11.27 9.68

Market Share Of Remittance 19% 22% 26% 27% 28%

Market Value Per Share 83.00 89.00 90.00 83.98 59.00

32
Graphs:

33
34
35
36
37
Comparison:
Earnings Per Share: In 2008 = 5.63, 2009 = 5.51, 2010 = 6.02, 2011 = 4.84, 2012 = 4.42

Highest Earnings Per Share in 2010 = 6.02

Net Asset Value Per Share: In 2008 = 27.76, 2009 = 27.12, 2010 = 23.48, 2011 = 22.22, 2012
= 31.78

Highest Net Asset Value Per Share in 2012 = 31.78

Return on Assets: In 2008 = 1.27%, 2009 = 1.34%, 2010 = 1.47%, 2011 = 1.35%, 2012 =
1.27%.

Highest Return on Assets in 2010 = 1.47%,

Debt Equity Ratio: In 2008 = 8.86, 2009 = 6.90, 2010 = 7.03, 2011 = 8.53, 2012 = 6.49

Highest Debt Equity Ratio in 2008 = 8.86

Current Ratio: In 2008 = 1.09, 2009 = 1.12, 2010 = 1.09, 2011 = 1.08, 2012 = 1.16.

Highest Current Ratio in 2012 = 1.16

Return on Equity: In 2008 = 19%, 2009 = 17%, 2010 = 19%, 2011 = 17%, 2012 = 14%.

Highest Return on Equity in 2010 = 19%,

Gross Profit Ration: In 2008 = 47%, 2009 = 49%, 2010 = 52%, 2011 = 52%, 2012 = 49%.
Highest Gross Profit Ration 2010 & 2011 = 2%,

Price Earnings Ratio: In 2008 = 10.78, 2009 = 12.87, 2010 = 13.29, 2011 = 11.27, 2012 = 9.68.
Highest Price Earnings Ratio in 2010 = 13.29

Market Share Of Remittance: In 2008 = 19%, 2009 = 22%, 2010 = 26%, 2011 = 27%, 2012 =
28%.Highest Market Share Of Remittance in 2012 = 28%.

Market Value Per Share: In 2008 = 83, 2009 = 89, 2010 = 90, 2011 = 83.98, 2012 = 59.
Highest Market Value Per Share in 2010 = 90

38
ABOUT SOCIAL ISLAMI BANK limited:

The SOCIAL ISLAMI BANK LTD (SIBL), a second-generation bank, operating since 22
November, 1995 based on Shariah Principles, has now 86 branches all over the country with two
subsidiary companies - SIBL Securities Ltd. & SIBL Investment Ltd. Targeting poverty,
SOCIAL ISLAMI BANK LTD. is indeed a concept of 21st century participatory three sector
banking model in one. in the formal sector, it works as an Islamic participatory Commercial
Bank with human face approach to credit and banking on the profit and loss sharing: it is a Non-
formal banking with informal finance and credit package that empowers and humanizes real poor
family and create local income opportunities and discourages internal migration; it is a
Development Bank intended to monetize the voluntary sector and management of Waqf, Mosque
properties and introducing cash Waqf system for the first time in the history. In the formal
corporate sector, this Bank would, among others, offer the most up to date banking services
through opening of various types of deposit and investment accounts, financing trade, providing
letters of guarantee, opening letters of credit, collection of bills, leasing of equipment and
consumers' durable, hire purchase and instalment sale for capital goods, investment in low-cost
housing and management of real estates, participatory investment in various industrial,
agricultural, transport, educational and health projects and so on.

The bank has taken a renewed drive aiming at consolidating its business in more focused areas
covering SME and Agro-finance with emphasis on searching for alternative delivery channel
under which SMS banking and mobile based remittance payment systems that are gradually
introduced to disseminate the SIBL services to the doorsteps of the customers. The bank has
already introduced Internet banking and launched some new products to strengthen its business.
The products are Sonali Din, Sommridhir Sopan, Sonchoy Protidin, Swopner Shiri, Shukher
Thikana, Sabuj Chhya, Sabuj Shayanho, Subarnolata, Subornarekha, Sanchaita etc. and Zamil
ATM Debit card.
SIBL is a pioneer in introducing on-line banking among all the Islami Banks of the country with
state-of-the-art banking software, which will enable the bank to perform as any branch real time
banking service to the clients. The state-of-the-art banking software of the bank will enable to
perform as any branch real time banking service to the clients. SIBL is supported by core

39
banking solutions and our products & services are strongly backed by IT infrastructure, which
are upgraded & expanded on continuous basis.

SIBL has set its strategy to convert all its banking activities from traditional branch-based
banking system to an ideal blending of both centralized processing unit (CPU) and effective
operation of branch that based on modern essence of banking.

The bank is running its payment system successfully through BACPS, BEFTN under BACH in
order to boost up its businesses in multiple dimensions. Adopting BACH System as per
guidelines of Bangladesh Bank, SIBL ensures security, safety and hassle free faster transactions
from end to end. Moreover, the bank is effectively adopting regulatory guidelines on IT risk
management.

SIBL is quite conscious of its social business responsibilities and is always trying to participate
in various social programs in the country under its CSR portfolio giving special emphasis on
health, habitat & education. The bank ensures to provide better integrated idea of formal,
informal & voluntary banking in the same platform. SIBL has its unique feature to mobilize
capital through CASH WAQF program.

Mission:
Transformation into a service-oriented technology-driven profit earning Bank

Ensure fast, accurate and best-in-class customer service

Balanced & sustainable growth strategy

Optimum return on shareholder's equity

Introducing innovative Islamic Banking Products

Attract and retain high quality human resources

Empowering real poor families and create local income opportunities

Providing support for social benefit organizations by way of mobilizing Funds and social
services

40
Vision:

In our journey towards continuous excellence we are striving to become the country's leading
Islamic Bank offering one-step service of an wide range of value added products and services
meeting the needs of our customers; conducting our business ethically in accordance with the
laws of Shariah while optimizing best utilization of the most modern state-of-the-art
technological solutions through creation of pro-active organizational culture based on sound
team spirit, fairness, mutual understanding and pragmatic leadership always remaining open to
new ideas and adaptable to the best practices in the market ensuring recognition and quality
banking experience to our Customers and deliver best value to all our stakeholders as well.

2. Social Islamic bank 5 year ratio

analysis:
2008 2009 2010 2011 2012

Return On Equity (ROE) 10.82% 12.14% 15.31% 11.51% 14.15%

Return On Assets (ROA) 1.19% 1.24% 2.39% 2.70% 2.75%

Earnings Per Share 1.72 1.84 2.15 1.81 2.25

Net Asset Value Per Share 14.28 13.21 14.05 14.72 15.92

Debt To Equity Ratio 12.91 8.88 10.68 7.10 9.19

Current Ratio 1.04 1.07 1.02 0.97 1.04

Gross Profit Ratio 47.28% 55.78% 67.76% 59.90% 48.72%

Dividend Coverage Ratio 1.54 1.48 1.54 1.61 1.50

Cost Income Ratio 0.15 0.17 0.20 0.16 0.15

Price Earnings Ratio 12.49 18.75 24.53 14.51 8.81

41
Graphs:

42
43
44
45
46
Comparison:
Return on Equity: In 2008 = 10.82%, 2009 = 12.14%, 2010 = 15.31%, 2011 = 11.51%, 2012 =
14.15%.

Highest Return on Equity in 2010 = 15.31%

Return on Assets: In 2008 = 1.19%, 2009 = 1.24%, 2010 = 2.39%, 2011 = 2.70%, 2012 =
2.75%.

Highest Return on Assets in 2012 = 2.75%,

Earnings Per Share: In 2008 = 1.72, 2009 = 1.84, 2010 = 2.15, 2011 = 1.81, 2012 = 2.25

Highest Earnings Per Share in 2012 = 2.25

Net Asset Value Per Share: In 2008 = 14.28, 2009 = 13.21, 2010 = 14.05, 2011 = 14.72, 2012
= 15.92

Highest Net Asset Value Per Share in 2012 = 15.92

Debt Equity Ratio: In 2008 = 12.91, 2009 = 8.88, 2010 = 10.68, 2011 = 7.10, 2012 = 9.19

Highest Debt Equity Ratio in 2008 = 12.91

Current Ratio: In 2008 = 1.04, 2009 = 1.07, 2010 = 1.02, 2011 = 0.97, 2012 = 1.04.

Highest Current Ratio in 2009 = 1.07

Gross Profit Ration: In 2008 = 47.28%, 2009 = 55.78%, 2010 = 67.76%, 2011 = 59.90%, 2012
= 48.72%.

Highest Gross Profit Ration 2010 = 67.76%,

Dividend Coverage Ratio: In 2008 = 1.54, 2009 = 1.48, 2010 = 1.54, 2011 = 1.61, 2012 =
1.50.

Highest Dividend Coverage Ratio in 2011 = 1.61

Cost Income Ratio: In 2008 = 0.15, 2009 = 0.17, 2010 = 0.20, 2011 = 0.16, 2012 = 0.15.

Highest Cost Income Ratio in 2010 = 0.20

Price Earnings Ratio: In 2008 = 12.49, 2009 = 18.75, 2010 = 24.53, 2011 = 14.51, 2012 = 8.81

Highest Price Earnings Ratio in 2010 = 24.53

47
ABOUT AL ARAFAH ISLAMI BABK LIMITED:

With the objective of achieving success here & hereafter by pursuing the way directed by Allah
and the path shown by His Rasul (SM), Al Arafah Islami Bank Ltd was established (registered)
as a private limited company on 18 June 1995. The inaugural ceremony took place on 27
September 1995. The authorized capital of the Bank is Tk.5000.00 million and the paid up
capital is Tk. 4677.28 million as on 31.12.2010. Renowned Islamic Scholars and pious
businessmen of the country are the sponsors of the Bank. 100% of paid up capital is being owned
by indigenous shareholders.
The equity of the bank stood at Tk. 9647.45 million as on 31 December 2010, the manpower was
1711 and the number of shareholders was 49,386. It has achieved a continuous profit and
declared a good dividend over the years. High quality customer service through the integration of
modern technology and new products is the tool of the bank to achieve success. The bank has a
diverse array of carefully tailored products and services to satisfy customer needs.
The Bank is committed to contribute significantly to the national economy. It has made a
positive contribution towards the socio economic development of the country with 78 branches
of which 21 is AD throughout the country.

Mission:

Achieving the satisfaction of Almighty Allah both here & hereafter.

Proliferation of Shariah Based Banking Practices.

Quality financial services adopting the latest technology.

Fast and efficient customer service.

Maintaining high standard of business ethics.

Balanced growth.

Steady & competitive return on shareholders' equity.

Innovative banking at a competitive price.

48
Vision:
To be a pioneer in Islami Banking in Bangladesh and contribute significantly to the growth
of the national economy.

3. Al-arafah Islamic bank limited 4 year

ratio analysis:
2007 2008 2009 2010

Gross Profit Margin 15% 19% 21% 44%

Return On Equity (ROE) 17% 25% 24% 18%

Return On Assets (ROA) 1.15% 1.71% 1.77% 2.45%

Operating Profit Margin 59% 62% 66% 106%

Total Asset Turnover 0.07 0.09 0.08 0.06

Fixed Asset Turnover 6.71 8.83 6.11 8.88

Price Earnings Ratio 14.2 9.9 11.4 13.24

49
Graphs:

50
51
Comparison:
Gross Profit Margin : In 2007 = 15%, 2008 = 19%, 2009 = 21%, 2010 = 44%,

Highest Gross Profit Margin in 2010 = 44%

Return on Equity: In 2007 = 17%, 2008 = 25%, 2009 = 24%, 2010 = 18%,
Highest Return on Equity in 2008 = 25%

Return on Assets: In 2007 = 1.15%, 2008 = 1.71%, 2009 = 1.77%, 2010 = 2.45%,
Highest Return on Assets in 2010 = 2.45%,

Operating Profit Margin: In 2007 = 59%, 2008 = 62%, 2009 = 66%, 2010 = 106%,

Highest Operating Profit Margin in 2010 = 106%,

Total Asset Turnover: In 2007 = 0.07, 2008 = 0.09, 2009 = 0.08, 2010 = 0.06,

Highest Total Asset Turnover in 2008 = 0.09

Fixed Asset Turnover: In 2007 = 6.71, 2008 = 8.83, 2009 = 6.11, 2010 = 8.88,

Highest Fixed Asset Turnover in 2010 = 8.88

Price Earnings Ratio: In 2007 = 14.2, 2008 = 9.9, 2009 = 11.4, 2010 = 13.24,

Highest Price Earnings Ratio in 2007 = 14.2

Return on Assets: In 2008 = 1.19%, 2009 = 1.24%, 2010 = 2.39%, 2011 = 2.70%, 2012 =
2.75%.

Highest Return on Assets in 2012 = 2.75%,

52
CONCLUSION:
Based on the 6 years ratio analysis we understand the every bank financial position. We
understand every bank financial strengths weakness and know every bank ratio analysis.

53
REFERENCES:
 http://www.google.com.bd/url?sa=t&rct=j&q=al-
arafah%20islami%20bank%20limited%20last%205%
 Al-Arafah Islami Bank Limited last 5 years ratio analysis - Google Search
 icb islamic bank last 5 years ratio analysis - Google Search
 http://www.google.com.bd/url?sa=t&rct=j&q=social%20islami%20bank%20limited
%20last%205%20y
 Social Islami Bank Limited last 5 years ratio analysis - Google Search
 ICB ISLAMIC BANK LIMITED-Company Details
 Internship Report On Performance Evaluation of Islamic Banks in Bangladesh |
thesis4u
 Dhaka Bank Limited last 5 years ratio - Google Search
 dhaka bank limited - Google Search
 http://www.google.com.bd/url?sa=t&rct=j&q=export%20import%20bank%20of%20
bangladesh%20lim
 http://www.google.com.bd/url?sa=t&rct=j&q=al-
arafah%20islami%20bank%20limited%20last%205%20ye
 http://www.google.com.bd/url?sa=t&rct=j&q=al-
arafah%20islami%20bank%20limited%20last%205%20y
 Internship Report On Performance Evaluation of Islamic Banks in Bangladesh |
thesis4u
 http://www.google.com.bd/url?sa=t&rct=j&q=al-
arafah%20islami%20bank%20limited%20last%205%
 http://www.google.com.bd/url?sa=t&rct=j&q=bd%20banks%20list&source=web&cd
=1&cad=rja&uact=8
 Shahjalal islami bank Limited last 5 years ratio analysis - Google Search

54