Ank-Management-Project-on-Ific-Bank

Topics: Financial ratios, Financial ratio, Revenue Pages: 39 (6075 words) Published: December 3, 2012
Ratio Analysis of IFIC Bank
Introduction

This is a report of performance analysis of the company entitled IFIC Bank. The ratio analysis will help to find out the financial performance of this bank for the period of 2006 to 2009. The performance of IFIC Bank has been analyze in terms of

 Activity (Efficiency) ratios
 Profitability ratios
 Market Position ratios

Objectives

The objective of this report is to analyze the financial performance of IFIC Bank from the years 2006 to 2009. Ratios have been used as an instrument to analyze and explain the financial performance of the bank. This will allow a greater insight into the company and also the industry where it operates. I will also recommend on what needs to be done for the improvement of the bank. This analysis will help investors to decide on whether to invest their money in IFIC Bank or not. The objective of a company is to maximize shareholder¶s wealth. I will identify on behalf of the investors whether the company is actually directing toward its objective by using ratio analysis. This report will also allow me to get some practical experience regarding the financial evaluation using ratio analysis. This will prove useful in the future, when I will be in the practical field.

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Ratio Analysis of IFIC Bank
Methodology

The purpose of my term paper is to analyze the performance of IFIC .The project starts with

 Data Collection
This term paper is based on Secondary Data. The main sources in conducting this research were the bank¶s annual report, DSE Library, selected reference books, local texts books about bank management, credit risk rating report of IFIC Bank and journals on the internet.

 Quantitative Analysis
I have conducted a Quantitative Analysis. Various types and classes of ratios were used in evaluating performance of IFIC Bank. According to the plan I calculated all the ratios by taking require information from its financial reports. Almost all of those ratios were taught in our class; moreover I have collected some from internet.  Application Software used: Microsoft Excel, Microsoft word.

Limitation

 As I am dealing with a local bank some local ratios needed to be given as the text books we follow only talk about American ratios. So had to use so local books and journals which I must say was extremely hard to locate.

 I found it somewhat difficult to understand some of the terms as all of the terms given in the financial statements were not similar to our text book.
 Although it was very difficult for me to complete the whole project within very short period, I did give my hundred percent to finish my project on time and in a presentable manner. If I had enough time, I will make the report with more compatible financial analysis. 2

Ratio Analysis of IFIC Bank
 Major ratio analysis limitation is that ratio analysis does not take into account the effect of inflation. Sometimes profit figures are increasing due to inflationary factors rather than an increase in sales. But the analysis will show an improved performance by the company which is clearly not the case

IFIC Bank¶s overview:
International Finance Investment and Commerce Bank Limited (IFIC Bank) is banking company incorporated in the People¶s Republic of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions aboard. In 1983 when the Government allowed banks in the private sector, IFIC was converted into a full fledged commercial bank. The Government of the People¶s Republic of Bangladesh now holds 32.75% of the share capital of the Bank. Directors and Sponsors having vast experience in the field of trade and commerce own 8.62% of the share capital and the rest is held by the general public.

The...