Ration Analysis of Duch Bangla Bank

Topics: Financial ratios, Stock market, Generally Accepted Accounting Principles Pages: 20 (5534 words) Published: May 11, 2013
1.1: Origin of the Report:
For this requirement of “Management of Financial Institution” we have prepare this report. We are also interested to know actual financial performance of Dutch-Bangla Bank Ltd.

1.2: Purpose:
The purpose of preparing this report is to focus on the financial performance of Dutch-Bangla Bank Ltd. Specifically; we have prepared this report to know-

* Qualitative Analysis
* SWOT Analysis
* Industry Analysis
* Quantitative Analysis
* Ratio Analysis
* EVA Methid
* MVA Method
* Comparison of Traditional & Modern Approach
* Du Pont Analysis (three & five factors)
* Risk Measurement: Maturity Model

1.3: Scope:
Though we could not access to the information which are most relevant for this report, we prepared a report which can help to get ideas about financial performance of DBBL from year 2006 to 2010.

1.4: Limitation:
While preparing this report we have faced following problem. Such as- * We were unable to prepare some ratios because of unavailability of data. * Again we have prepare our whole report based on annual report

1.5: Methodologies:
This study is basically based on information collected from secondary sources. i.e. Annual Report. Some information is also collected from website.

2.0: The Report Body

Dutch-Bangla Bank started operation is Bangladesh's first joint venture bank. The bank was an effort by local shareholders spearheaded by M Sahabuddin Ahmed (founder chairman) and the Dutch company FMO. DBBL was established under the Bank Companies Act 1991 and incorporated as a public limited company under the Companies Act 1994 in Bangladesh with the primary objective to carry on all kinds of banking business in Bangladesh. The Bank is listed with the Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. From the onset, the focus of the bank has been financing high-growth manufacturing industries in Bangladesh. The rationale being that the manufacturing sector exports Bangladeshi products worldwide. Thereby financing and concentrating on this sector allows Bangladesh to achieve the desired growth. DBBL's other focus is Corporate Social Responsibility (CSR). Due to its investment in this sector, DBBL has become one of the largest donors and the largest bank donor in Bangladesh. The bank has won numerous international awards because of its unique approach as a socially conscious bank. DBBL was the first bank in Bangladesh to be fully automated. The Electronic-Banking Division was established in 2002 to undertake rapid automation and bring modern banking services into this field. Moreover, DBBL choosing the low profitability route for this sector has surprised many critics. DBBL had pursued the mass automation in Banking as a CSR activity and never intended profitability from this sector. As a result it now provides unrivalled banking technology offerings to all its customers. Because of this mindset, most local banks have joined DBBL's banking infrastructure instead of pursuing their own. Even with a history of hefty technological investments and even larger donations, consumer and investor confidence has never waned. Dutch-Bangla Bank stock set the record for the highest share price in the Dhaka Stock Exchange in 2008.

2.1: Qualitative Analysis
2.1.1: SWOT Analysis

The SWOT analysis will help us to understand the hidden chances and barriers of DBBL Bank.


* Nation’s largest ATM network.
* Most technology advanced bank
* Largest bank donor in Bangladesh
* Set up cisco based call center
* Having strong treasury team
* Have best compension package and working environment
* Implemented a softweere to launch mobile banking soon.
* Having no reward of investment in ATM network and technology market currently. * No exposure in stock market.
* Excessive burden on softwere system...
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