Chapter-1: Introduction

1.1 Introduction
Through this Internship report an attempt has been made to assess the ratio analysis of
NCC, City & Standard Bank Limited. Basically this report has been developed from
the basis of secondary data. The sources of information are annual report of the bank,
internet, newspaper, magazine etc. My experience also helps me to establish this
report by making this bank’s ratio analysis and by describing its overall banking
system. Banking is a system of intermediation. Modern commercials banks since their
early days had been doing two main functions. These are Acceptance of deposits from
the public and lending money to the people.
In addition, they also involved themselves in investment. Apart from the principal
function, they also have to render various services to the people. The ever-changing
demands of the society, business and industry have led the banks to undertake such
services for enhancing their utility to the society at large. Based on nature of these
services, they may be classified as under
(a) Agency services: collection and payment of checks, payment on behalf of
customs, purchase and sale of stocks, acting as trustees, acting as agency.
(b) General services: opening letter of credit, safe custody, dealing in foreign
exchange, providing Investment reports, underwriting of loans, providing remittance
facilities, complete service in foreign trade.
The structure of the banking system has changed substantially over the last few years.
NCBs’ role has gone down. Their share in total assets went down from 54 percent in
1998 to 34 percent in 2019. On the other hand, PCBs’ share went up from 27 percent
in 1998 to 65 percent in 2019. The change reflects adoption and implementation of
new policies for the banking sector. It is unlikely true that default culture in our
banking sector is a common phenomenon which hampers the strength of the banking
sector. But arrival of private bank in our economy has rapidly change this
environment. The classified loan over the total loan of our private bank is between
5%-8% whereas it is more than 25% in our government bank. As a private
commercial bank we are very much conscious in this regards. One important
challenge that the banking sector is facing is the introduction of information
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technology in the banking system in an aggressive manner. This is required to
improve management efficiency, reduce operational cost, improve customer services,
and increase transparency. The earning and profitability of the banking sector have
also improved in recent years and it is generally measured by return on assets (ROA)
and return on equity (ROE). Hence, the banking sector would play a vital role in the
development of the country and efficient and sound banking management would lead
the country to reach at the highest peak of success. NCC, City & Standard Bank
Limited aims at maintain in effective relationship with the customers, marketing of
Investment products, exploring new business opportunities etc. NCC, City & Standard
Bank Limited takes well calculative business risk while safeguarding it’s capital,
financial resources and profitability from various risk. Presently, NCC, City &
Standard Bank Limited has got 146 branches and a total of 784 employees working in
NCC, City & Standard Bank Limited (as of June 2006). Its authorized capital is Taka
250 crores and the paid-up capital is Taka 85.40 crores.
The NCC, City & Standard bank has an Asset Liability Committee (ALCO) that
reviews liquidity requirement of the bank, the maturity of assets and liabilities,
deposit and lending pricing strategy and the liquidity contingency plan. The prime
objective of the ALCO is to monitor and avert significant volatility in net profit
income, investment value and exchange earnings. NCC, City & Standard Bank
Limited strives hard to optimize profit through conduction of transparent business
operations within the legal and social framework with malice to none and justice for
all. To achieve the maximum benefit from the investment both funded and non-
funded the major issue is select the sound ones. In this regard project appraisal as well
as evaluation should be considered most. Before financing in any project the
quantities and qualitative judgment is essential. The financial strength, management
structure, business size, business line, nature of business, competitor etc. should be
identified. After financing strong monitoring is also required. As a member of the
banking family we are bound to follow the rules and regulation of the government. So
we are conscious enough to conduct our operation abiding by direction of Bangladesh
Bank. For this reason we have to serve different information in the credit information
bureau of Bangladesh Bank.

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1.2 Background of the study:
The Jews in Jerusalem introduced a kind of banking in the form of money lending
before the birth of Christ. The word “bank” was probably derived from the word
‘bench’ as during ancient time Jews used to do money –lending business sitting on
long benches. First modern banking was introduced in 1668 in Stockholm as
‘Savingss Pis Bank’, which opened up a new era of banking activities throughout the
European Mainland. In the South Asian region, early banking system was introduced
by the Afghan traders popularly known as Kabuli wallas. Muslim businessmen from
Kabul, Afghanistan came to India and started money-lending business in exchange of
interest sometime in 1312 A.D. They were known as ‘Kabulia wallas’. The financial
system of Bangladesh consists of Bangladesh Bank (BB) as the central bank, 4
nationalized commercial banks (NCB), and 5 government owned specialized banks,
30 domestic private banks, 10 foreign banks and 28 non-bank financial institutions.
The financial system also embraces insurance companies, stock exchanges and co-
operative banks The structure of the banking system has changed substantially over
the last few years. NCBs’ role has gone down. Their share in total assets went down
from 54 percent in 1998 to 40 percent in 2019. On the other hand, PCBs’ share went
up from 27 percent in 1998 to 43 percent in 2019. The change reflects adoption and
implementation of new policies for the banking sector. One important challenge that
the banking sector is facing is the introduction of information technology in the
banking system in an aggressive manner. This is required to improve management
efficiency, reduce operational cost, improve customer services, and increase
transparency. Hence, the banking sector would play a vital role in the development of
the country and efficient and sound banking management would lead the country to
reach at the highest peak of success.
1.3 Literature Review:
Pioneer research in this area (George and Barksdale, 1974) identified several distinct
differences between the marketing of “service” firms and “manufacturing” firms. It
was Shostack’s (1977) research that brought to the fore the distinct nature of services
marketing. She noted that services were intangible, rendered, experienced, and unable
to be stored. Consequently, her conclusion was that services should be marketed
differently from tangible products. It was her early work that gave equal weight to the
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components of “service” as it did to “product.” Her research concluded that service
marketing strategies should deal with specific issues related to distinct elements
within each product. She also concluded that changes in any single element could
impact other elements within the function, and as such, services marketing should
consider products more holistically, meaning to look at each item on its merits alone.
Enis and Roering (1984) were unconvinced that there is a distinction between service
marketing and manufacturing marketing. It was their conclusion that the strategies
used for all product is strictly a “bundle of benefits” regardless of whether they are
tangible or intangible.
Service Quality in Service Product
The principal study by Zenithal, et al (1985) fostered a direct relationship between
customer relationship and service quality and broadened the unique characteristics of
service products. They explained that service in its production sense and consumption
occurs simultaneously. Production and consumption of service products cannot exist
in isolation, requiring them to be simultaneously produced and consumed.
Additionally, they suggest that service production and consumption is by its own
nature heterogeneous. Their research was significant in that it highlighted the
differences between manufactured products and service products, and it introduced
the interrelationships between customer service and customer relationship through the
measurement of gaps.
Customer relationship:
A key aspect in customer relationship is the way a customer can attain relationship or
disrelationship with a company’s service. If a company wants to satisfy its customers
the first question it needs to answer is what it that satisfies customers is and, equally
important, what it is that makes customers dissatisfied with the company and its
products and services. Satisfying customers depends on the balance between
customers’ expectations and customers’ experiences with the products and services
(1990). When a company is able to lift a customer’s experience to a level that exceeds
that customer’s expectations, then that customer will be satisfied. Because customers
have ever increasing expectations it is necessary for companies continuously to
improve their quality and hence customers’ experiences with the company. The issue
is what should be improved to keep the customers satisfied. What customers
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experience is not just one simple aspect of a company, but a whole range of aspects?
Some of these aspects are concerned with the way customers experience the company
itself, some are concerned with the way customers experience the physical product
and, finally, some are concerned with the way customers experience the service the
company offers.
Product line:
Mc Crnthy & perreault (1968) said that “Product line is a set of individual product
that are closely related.”
Steven j. skinner (1988) will think that, “product line is a group of closely related
products that are considered a unit because of marketing, technical or end use
consideration.”
Product diversification:
Harry L. Hanson (1978) said, “Diversification means the addition of new product
with new mission in market.”
1.4 Diversification:
Diversification is a form of corporate strategy for a company. It seeks to increase
profitability through greater sales volume obtained from new products and new
markets. Diversification can occur either at the business unit level or at the corporate
level. At the business unit level, it is most likely to expand into a new segment of an
industry that the business is already in. At the corporate level, it is generally very
interesting entering a promising business outside of the scope of the existing business
unit.

The different types of diversification strategies:

The strategies of diversification can include internal development of new products or
markets, acquisition of a firm, alliance with a complementary company, licensing of
new technologies, and distributing or importing a products line manufactured by
another firm. Generally, the final strategy involves a combination of these options.
This combination is determined in function of available opportunities and consistency
with the objectives and the resources of the company.

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There are three types of diversification: concentric, horizontal, and
conglomerate. Those are given bellow:
Concentric diversification:
This means that there is a technological similarity between the industries, which
means that the firm is able to leverage its technical know-how to gain some
advantage. For example, a company that manufactures industrial adhesives might
decide to diversify into adhesives to be sold via retailers. The technology would be
the same but the marketing effort would need to change.
It also seems to increase its market share to launch a new product that helps the
particular company to earn profit. For instance, the addition of tomato ketchup and
sauce to the existing "Maggi" brand processed items of Food Specialties Ltd. is an
example of technological-related concentric diversification.
The company could seek new products that have technological or marketing synergies 
with existing product lines appealing to a new group of customers. This also helps the
company to tap that part of the market which remains untapped, and which presents
an opportunity to earn profits.
Horizontal diversification:
The company adds new products or services that are often technologically or
commercially unrelated to current products but that may appeal to current customers.
In a competitive environment, this form of diversification is desirable if the present
customers are loyal to the current products and if the new products have a good
quality and are well promoted and priced. Moreover, the new products are marketed
to the same economic environment as the existing products, which may lead to
rigidity and instability. In other words, this strategy tends to increase the firm's
dependence on certain market segments. For example, a company that was making
notebooks earlier may also enter the pen market with its new product.
Conglomerate diversification (or lateral diversification):
The company markets new products or services that have no technological or
commercial synergies with current products but that may appeal to new groups of
customers. The conglomerate diversification has very little relationship with the firm's
current business. Therefore, the main reasons of adopting such a strategy are first to
improve the profitability and the flexibility of the company, and second to get a better
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reception in capital markets as the company gets bigger. Even if this strategy is very
risky, it could also, if successful, provide increased growth and profitability.
Goal of diversification:
According to Calori and Harvatopoulos (1988), there are two dimensions of
rationale for diversification. The first one relates to the nature of the strategic
objective: Diversification may be defensive or offensive.
Defensive reasons may be spreading the risk of market contraction, or being forced to
diversify when current product or current market orientation seems to provide no
further opportunities for growth. Offensive reasons may be conquering new positions,
taking opportunities that promise greater profitability than expansion opportunities, or
using retained cash that exceeds total expansion needs.
The second dimension involves the expected outcomes of diversification:
Management may expect great economic value (growth, profitability) or first and
foremost great coherence and complementary to their current activities (exploitation
of know-how, more efficient use of available resources and capacities). In addition,
companies may also explore diversification just to get a valuable comparison between
this strategy and expansion.
Strategies for Diversification:
A company which accepts diversification as a part of its planned approach to growth
undertakes the task of continually weighing and comparing the advantages of these
four alternatives, selecting first one combination and then another, depending on the
particular circumstances in long-range development planning. While they are an
integral part of the over-all growth pattern, diversification decisions present certain
unique problems. Much more than other growth alternatives, they require a break with
past patterns and traditions of a company and an entry onto new and uncharted paths.
Accordingly, one of the aims of this article is to relate diversification to the over-all
growth perspectives of management, establish reasons which may lead a company to
prefer diversification to other growth alternatives, and trace a relationship between
over-all growth objectives and special diversification objectives.
Product-Market Alternatives:
The term "diversification" is usually associated with a change in the characteristics of
the company's product line and/or market, in contrast to market penetration, market
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development, and product development, which represent other types of change in
product-market structure.
Since these terms are frequently used interchangeably, we can avoid later confusion
by defining each as a special kind of product-market Strategy.
 The product line of a manufacturing company refers both to the physical
characteristics of the individual products (for example, size, weight, materials,
tolerances) and to the performance characteristics of the products (for
example, an airplane's speed, range, altitude, payload).
 In thinking of the market for a product we can borrow a concept commonly
used by the military the concept of a mission. A product mission is a
description of the job which the product is intended to perform. For instance,
one of the missions of the Lockheed Aircraft Corporation is commercial air
transportation of passengers; another is provision of airborne early warning for
the Air Defense Command; a third is performance of air-to-air combat.
 A product-market strategy, accordingly, is a joint statement of a product line
and the corresponding set of missions which the products are designed to
fulfill. In shorthand form if we let n represent the product line and if the
corresponding set of missions, then the pair of IT and is a product-market
strategy.
A product development strategy, on the other hand, retains the present mission and develops
products that have new and different characteristics such as will improve the performance of the
mission.

1.5 Scope of the report

The topic of this paper is the investment and comprehensive analysis of commercial
bank of the NCC, City & Standard Bank Limited. view to represent the financial
System of Square. Square is the third largest company in pharmaceutical sector. It
operate financial securities both Dhaka Stock Exchange & Chittagong Stock
Exchange. Investor can get information for taking their decision. Also those who have
interest in this sector or company can get financial decision through this thesis.

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1.6 Methodology of the study:
The methodology of the report is stated below, which was appropriately exercised in
achieving the above stated objective.

1.7 Time period of the study:

For the fulfillment of the desired purpose following working days are spend to various
department of NCC, City & Standard Bank Limited.

1.8 Sources of Data collection:

The inputs are collected from two sources:
a) Primary Sources:
 Discussion with Bank Officers.
 Personal observation.
 Desk work in different sections/departments.
b) Secondary Sources:
 Annual report of the Bank.
 Consultation of related book and publications.
 Different Statements.
 File Balance sheet and various documents.
c) Data Processing:
Collected information is processed by the use of computer system.
Detailed analysis, working variables and working definitions are embodied in the
report.

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1.9 Objectives of the Report:
The primary objectives of the report are:
 To submit a report, for the fulfillment of my MBA practical.
 The main objective of this report is to find out the “Overall Banking and A
Comprehensive Review on Investment of NCC, City & Standard Bank Limited.”.
 To gather comprehensive knowledge on overall banking functions and the
expectations of the customers regarding the service level of the bank.
 Identify the factors contributing to the attractive and operative performance of the
local branch of the bank.
 To make a study of the facts in order to arrive at certain conclusion about overall
banking operation.
 Identify the main objectives of NCC, City & Standard Bank Limited Investment
Disbursement.
 To find out the sector in which NCC, City & Standard Bank Limited provides
Investment.
 To evaluate financial affairs of the Bank
 To visualize the quantitative and qualitative aspects.

1.10 Limitations of the report:

The present report was not out of limitations. Some restraints are disclosed bellow:
 The main constraint of the report is insufficient of information, which was
required for the report. There are various information the bank employee can’t
prove due to security and other corporate obligations.
 Due to time limitation many of the aspects could not be discussed in the
present report.
 Since the bank personnel where very busy, they could provide me vary little
time.
 Carried out such a report for the first time, so in experience is one of the main
constraints of the report.

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 Chapter-2: Organizational Overview
Organizational Overview
2.1 NCC Bank Ltd
National Credit and Commerce Bank Ltd. bears a unique history of its own. The
organization started its journey in the financial sector of the country as an investment
company back in 1985. The aim of the company was to mobilize resources from
within and invest them in such way so as to develop country's Industrial and Trade
Sector and playing a catalyst role in the formation of capital market as well. Its
membership with the browse helped the company to a great extent in these regard.
The company operated upto 1992 with 16 branches and thereafter with the permission
of the Central Bank converted into a full fledged private commercial Bank in 1993
with paid up capital of Tk. 39.00 crore to serve the nation from a broader platform.
Since its inception NCC Bank Ltd. has acquired commendable reputation by
providing sincere personalized service to its customers in a technology based
environment.
The Bank has set up a new standard in financing in the Industrial, Trade and Foreign
exchange business. Its various deposit & credit products have also attracted the
clients-both corporate and individuals who feel comfort in doing business with the
Bank.

Mission
 Delivering excellent financial service to our communities based on strong
customer relationship
 Providing long lasting solutions that combining our cutting edge technology,
experience and financial strength to our clients and stakeholders.
 Creating a cohesive and friendly environment where customers and our people
can excel.
Vision:
To become one of the most adorable commercial bank in serving the Nation as a
progressive and socially responsible financial institution by bringing credit &
commerce together for increased Shareholders value and sustainable growth.
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Total Branches as Division wise is mentioned in the following table:
Table 1: Total Branches
Division No. of Branch
Dhaka Division 51
Chittagong Division 44
Rajshahi Division 6
Khulna Division 5
Sylhet Division 9
Barisal Division 1
Rangpur 5
Total 121

Hierarchy of Position in NCC Bank:

Chairman
Advisor
Board of Director
Senior Executive
Vice President
Senior Vice President
Vice President
Managing Director
Form of Organization:
►Board of Directors
►Executive Committee
►Audit Committee
►Management Committee
►Shariah council
Board of Directors
At present there are 26 members in the Board of Director. Out of 26 members 23 of
them are the sponsor of the shareholder and 3 of them are publicly nominated as the
equity participants from capital market have included them.

However the members are obliged to maintain the annual general meeting and declare
the dividend payout schedule on due time. Moreover, the committee selected by

12
shareholders represents individual body that then looks after the periodic issue with
the management and tries to solve the problem.

Business Operation
National Commerce and Credit Bank Limited emerged as bank in the country on 17 th
May 1993 out of a great turbulent situation encounter by set while National Credit
Limited. However the institution survived the ordeals and come out as a full-fledged
commercial bank. The company raised its Authorized Capital to Tk. 750 million as
per guidelines set out by the Bangladesh Bank. The paid up capital was fixed at Tk.
480.48 million as against Tk. 429.00 million.

Trade Finance and Correspondent Banks

Successful companies today are fully aware that they need to be able to rely on the
services of a bank that can handle international trade with a good hand. Ever since its
conversion into a full –fledged bank in 1993, NCC bank has been an accomplished
“Trade Finance” bank. With a highly professional team experienced and competent
professionals we are able to provide a wide range of services to companies engaged in
international trade.

NCC Bank has also positioned itself as an established correspondent bank. Through a
worldwide network of 260 correspondent banks NCC Bank is present in all key areas
of the globe. Our ambit of correspondent includes top ranking international banks
with a global reach.

Performance of the Bank

The bank may sustain its strong image in the mind of the customers and shareholders
as a leading financial institution despite serious competition from both local and
foreign banks operating in the country. Sill they are increasing their profit. Its opening
profit was Tk. 624.94 million in 2018, which were Tk. 597.57 million in previous
year. But whole performance of the bank is not looking well.

Nature of the business

NCC bank is a progressive commercial bank in privet sector in Bangladesh. It creates
a new opportunities for its clients. It gives customized service and harmonious
banker-client relationship. It contributes towards formation of national capital, growth
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of saving and investment in trade, commerce and industrial sectors. It provides
different types of commercial banking and services to the customer of all strata in the
society with in the stipulation laid down in the Bank Company Act 1991. Rules and
regulations framed by the Bangladesh bank from time to time.

Features of NCCBL
Bank is an intermediary institute. Like other commercial bank NCCBL also has some
special features. They are as follows:

i. Legal Entity: It is compulsory matter for a bank to achieve legal entity. The
stronger legal entity leads to effective banking program. NCCBL has a strong
legal entity.
ii. Organizational Structure: NCCBL has a well-set organizational structure.
Organizational structure is a precondition of effective banking activities.
iii. Financial Solvency: Though NCCBL is a new bank, its ratio of liquidity is
well and strong. So, the clients get greater confidence in the bank.
iv. Location of The Bank: Location is very useful for bank. The Head Office and
the branches of NCCBL are located in the central point of the capital and the
other district towns.
v. Relation with the Central Bank: As the NCCBL is the government-registered
bank, so it maintains a friendly behavior with the Bangladesh Bank.
vi. Security: the NCCBL is totally a secured bank. The clients of the bank get a
heavy security on their deposit.
vii. Management of the Bank: The executives and the officers of NCCBL are very
experienced. Maximum executives are ex-government bank officers.
viii. Foreign Exchange: NCCBL operates foreign exchange business promptly.
There 13 branch deals with foreign exchange.
Domestic Branches of the Bank
The branches of the Bank cover all tile important trading and Commercial centers in
Bangladesh. At present it has 121 branches within Bangladesh. All the branches are
equipped with computers in addition to modem facilities, logistics and professionally
competent manpower.

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Human Resources Developments
Human Resources Development is focused on recruitment and in-house training for
both on the job and off the job Bank staff members through the Bank's Academy. City
Bank Academy - the oldest institution in the private sector - was conceived of as an
in-house training center to take care of the training needs of the Bank internally.
Academy is fully equipped with a professional library, modern training aids and
professional faculty. Library has about 4941 books on banking, economics,
accounting, management, marketing and other related subjects.

Main training activities consist of in-depth foundation programs for entry level
Management Trainees. Specialized training programs in the areas like general
banking, advance, foreign exchange, marketing and accounts etc. are also organized
by the Academy depending on need. In addition to conducting courses internally, The
Academy also selects candidates for nomination to various courses conducted by
distinguished training organizations in the country including Bangladesh Bank

Training Academy and Bangladesh Institute of Bank Management. The Academy

also re-designs its courses, programs etc, regularly to need the requirement of new
skills arising out of various directives, guidelines of the Central Bank and significant
changes in the banking sector from time to time.

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2.2 City bank Ltd.

From 1983 till date, City Bank has been a case study in evolution, having transformed
over time from a traditional organization to a critically acclaimed multi-faceted
institution that embraces global best practices and chooses to be at the forefront of
technological initiatives. Unlike many, the Bank's criteria for success are not only the
bottom-line numbers but also the milestones set towards becoming the most complete
bank in the country.

City bank is at the centre of one of the greatest challenges of time; their concentration
is on how to generate enough growth and jobs for 7 billion people, and counting. With
their firm footprint in Asia, Africa and the Middle East, they are trying to meet the
challenges by enabling trade and investment to flow to, from and within some of the
fastest-growing markets of the world. Over the last decade, City has continuously
served their clients and customers, shareholders and communities. From 2002 to
2018, they have increased their lending from $57 billion to $289 billion, increased the
corporate tax contribution almost five fold and tripled their staff to over 89,000.

In Bangladesh City Bank has started their operation in Chittagong, 1947. In the year
of 2000, it acquired ANZ Grind Lays bank for $1.34 billons. Now the bank serves
with the consumer banking and wholesale banking, managing 26 branches all over the
country.

City Bank (CBL) PLC is a multinational bank and a financial service group which is
incorporated in the UK with its Headquarters at 1 Alderman buries Square, London.
By serving the world for 150 years, it now spans in the developed and emerging
economies of the world. The group operations are mainly concentrated in Asia, Africa
and the Middle East and its operation is segmented under six regions: LTK, Europe,
Middle East, South Asia, South East Asia and the USA. City bank plays an
invigorating role in linking the world economic trend with different services under the
big umbrella of retail banking, corporate banking, private banking, SME banking and
SAADIQ Non-Islamic banking. Globally, the City group owns an array of key
resources that includes; a network of 600 offices in more than 50 countries; a staff of
about 89,000 of 115 diverse nationalities helps to energize creativity and innovation,

16
supporting the development of exciting new services and products for the worldwide
customers. At the global level, City operates with some key strategies that are quite
unique to other banks such as; to build and grow strong businesses in Middle East,
South Asia and Far East Asia. There vision for work, here in this regions is, building
unique position and image among the target customer segment and being responsive
to the needs and serve the needs better than the competitors. Presently at this time of
age City was formed in 1969 through a merger of two banks: The City Bank of British
South Africa, founded in 1863, and the City Bank of India, Australia and China,
founded in 1853.Both companies were keen to capitalize on the huge expansion of
trade and to earn the handsome profits to be made from financing the movement of
goods between Europe, Asia and Africa

City Bank has a history of more than 150 years. The name City has came from two
distinct original banks. The portions “City” and “City” stems from the “City Bank” of
India, Australia and China; the rest came from the “City Bank” of British South
Africa. City bank was established in 1853 by a Royal Charter granted by Queen
Victoria of England. The main person behind the City Bank was a Scot, James
Wilson. He kind of foresaw the advantages of financing the growing trade links with
the areas in the East, where no other financial institution was present that time widely.

Management of the Bank

2 young businessmen way back in 1983 set the wheel in motion. We salute the
founding fathers of this institution. It was the visionary entrepreneurship of 12 young
businessmen who braved the immense uncertainties with courage and zeal in order to
set up the country’s first private commercial bank in 1983. They are always in our
memory and we wholeheartedly pay tribute to the grand step they took toward making
history. They are (from left to right) Mr. Monowar Ali, Mr. Ibrahim Mia (Late), Mr.
Abdul Hadi (Late), Mr. M.A. Hashem, Mr. Anwar Hossain, Mr. Abdul Barik
Choudhury (Late), Mr. Deen Mohammad, Mr. A.B.M. Feroz, Mr. Md. Ali Hossain,
Mr. Azizul Haque Chowdhury, Mr. N.A. Chowdhury, Mr. N.A. Chowdhury (Late)
and Mr. A.K. Mehmood.

17
Vision:

The Financial Supermarket with a Winning Culture Offering Enjoyable Experiences

Mission:

 Offer wide array of products and services that differentiate and excite all
customer segments.
 Be the "Employer of choice" by offering an environment where people excel
and leaders are created.
 Continuously challenge processes and platforms to enhance effectiveness and
efficiency.
 Promote innovation and automation with a view to guaranteeing and
enhancing excellence in service.
 Ensure respect for community, good governance and compliance in everything
we do.

Values

 Result Driven
 Accountable & Transparent
 Courageous & Respectful
 Engaged & Inspired
 Focused on Customer Delight

Organization Profile
Organizational profile of City Bank:
Name of the organization City Bank
Type Public Limited Company
Industry Banking
Financial Services
Area Served Worldwide
Registered Address 136, Gulshan Avenue, Gulshan-2
Dhaka-1212, Bangladesh

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Bangladesh Registered Address City Bank Center
136, Gulshan Avenue, Gulshan-2
Dhaka-1212, Bangladesh
Hunting numbers: 02 58813483,
58814375, 58813126
Fax: 02 9884446
Key People John W. Peace (Chairman of the Board)
Peter A. Sands (CEO)
Finance and insurance
Consumer Banking
Corporate Banking
Investment Banking
Products Investment Management
Private Banking
Private Equity
Mortgage loans
Credit Cards
Revenue US$ 16.06 billion (2018)
Employees 3,858 (2018)
Total Branches 130
Website: city.com or sbl.com
Products of Credit Division:

There are many types of loan in City Bank, which takes customer to fulfill their
needs. Such as-

a) Retail loan = Most types of loan processing from here. These Are:

 City Express
 City Solution
 City Drive
 City Credit Card
 City Scholar
 City Double Loan

b) Corporate loan = Big company/organization are including here.

19
c) SME loan = Small/Medium entrepreneur are including here.

2.3 Standard Bank Limited:

Bank is the most important financial institutions in a country. In Bangladesh this
institutions is gradually increasing. These banks are helping in the progress of
economy of Bangladesh. Standard Bank Limited (SBL) was incorporated as a Public
Limited Company on May 11, 1999 under the Companies Act, 1994 and the Bank
achieved satisfactory progress from its commercial operations on 03rd June, 1999.
SBL has introduced several new products on credit and deposit schemes. It also goes
for Corporate and Retail Banking etc. The Bank also participated in fund Syndication
with other Banks. Through all these myriad activities SBL has created a positive
impact in the Market.
Standard Bank Limited is a scheduled Bank under private sector established under
the ambit of bank Company Act, 1991 and incorporated as a Public Limited
Company under Companies Act, 1994. The Bank started commercial banking
operations effective from June 06, 1999. During this short span of time the Bank had
been successful to position itself as a progressive and dynamic financial institution in
the country. The Bank had been widely acclaimed by the business community, from
small entrepreneur to large traders and industrial conglomerates, including the top
rated corporate borrowers for forward-looking business outlook and innovative
financing solutions. Thus within this very short period of time it has been able to
create an image for itself and has earned significant reputation in the country’s
banking sector as setting a new standard in banking. Presently it has eighty seven
with two Islami window branches in operation.
The emergence of Standard Bank Limited at the junction of liberation of global
economic activities, after the WTO has been an important event in the financial
sector of Bangladesh. The experience of the prosperous economies of Asian
countries and in particular of South Asia has been the driving force and the strategies
behind operational policy option of the Bank. The Company Philosophy – “Setting a
New Standard in Banking” has been preciously the essence of the legend of bank’s
success. Standard Bank Limited has been licensed by the Government of Bangladesh
as a Scheduled Bank in the private sector in pursuance of the policy of liberalization

20
of banking and financial services and facilities in Bangladesh. In view of the above,
the Bank within a period of 16 years of its operation achieved a remarkable success
and met up capital adequacy requirement of Bangladesh Bank.
Vision
The bank is marching forward with the vision of it would serve as partner and
advisor of the clientele to trade, commerce and industry.
Mission
The mission of the bank is to be utmost trustworthy stakeholder, careful, committed
for equitable and sustainable growth based on diversified deployment of
fund/resources leading the bank to the peak of healthy and wholesome financial
institution.
Objectives

 To be a dynamic leader in the financial market in innovating new products as

to the needs of the society.
 To earn positive economic value addition (EVA) each year to come.
 To top the list in respect of cost efficiency of all the commercial Banks.
 To become one of the best financial institutions in Bangladesh economy
participating in the most significant segments of business market that we serve.
Banking Activities
Treasury
Treasury unit is a core-banking unit and Standard Bank Limited’s treasury unit is one
of the best earning sources of the bank. The bank is well equipped with skilled
human resources for efficient dealing. Its everyday business evolves around
participation in Foreign exchange market and Money Market in a substantial volume.

 Foreign Exchange

Foreign Exchange dealing desk deals with different currencies in inter-bank market
from liquidity perspective. Everyday it offer competitive exchange rates for these
currencies against BDT.
 FX products

21
The bank’s daily foreign exchange products range as follows: –
1. Spot dealing.
2. Forward dealing.
3. SWAPS.
4. Forex- Commercial and non-commercial.
Money Market
Money market comprises all sorts of deals with local currency in inter-bank /NBFI
market in Bangladesh. Standard Bank Limited’s money market desk lends and
borrows a remarkable amount for liquidity management and arbitrage in a lucrative
manner. Recurrent deals in the market make Standard Bank Limited. as an agile and
active participant in the money market of Bangladesh. Money market of the bank
deals with:-

 Overnight (call) lending and borrowing with Banks-NBFIs.

 Term placement and with Banks-NBFIs
 REPO/Reverse REPO of govt. security scripts with central bank and other
commercial banks.
 It takes a very dominant rule for coding rate and various market projections in our
Money market through its everyday deals.
Foreign Remittance Services
Inward foreign remittance is one of major sources of the foreign currency reserve of
the country and in order to encourage inflow of remittances through banking channel
from the Non-resident Bangladeshis, Standard Bank Limited provides quality service
for repatriation and collection of remittances with the help of its foreign
correspondents and trained personnel. Remittance services provided by Standard
Bank Limited are:-
Inward Remittance:-
Process / collection of cheque/ Draft, TT, EFT in USD, GBP, EURO, AUD and JPY
Outward Remittance:-

 Issuance of FDD, TT, EFT in USD, GBP,EURO, AUD and JPY

 Issuance of AMEX Travellers Cheques in USD

22
 Handling of Student file of the students going abroad for educational purpose in
USD, GBP, EURO, AUD and JPY
Foreign Currency Accounts
Standard Bank Limited provides different account services as prescribed by the
guidelines of central bank and offer competitive interest rate for those accounts.

 Foreign Currency Account. (FC)

 Non- Resident Foreign Currency Deposit Account (NFCD)
 Resident Foreign Currency Deposit Account (RFCD)
 Non Resident Non-convertible Taka Account.
Trade Finance
Standard Bank Limited provides assistance for local and international trade using
every mood of finance to the traders, exporters, manufactures, individual etc.
The international trade encompasses a substantial portion of business conducted by
the Bank. During the year 2004, the bank has contributed in the national economy
after successfully handling of foreign exchange transactions viz. Import, Export
(Both local and foreign).
In the wake of recession of business, the government is currently pursuing an
accommodative monetary policy through a number of measures such as reduction in
Bank rate, reduction in interest rate in government bonds and reduction on SLR
requirement, simultaneously adoption of floating exchange rate and open market
operation fueling incentives towards private investment with the aim of creating
more capital avenues thereby generating more income to add to the GDP of the
economy.  In the juncture, it is very tough for a Bank to remain on track of
competition to achieve desired goal in international trade. In order to achieve the
bank’s cherished goal of achieving consumer satisfaction it extend its hand in the
following sector:

 Trade Finance
 Small & Medium Business
 House Building loan
 Consumer Credit
 Transport Loan
23
 International Trade
 Project Financing
 Lease Financing
 Financing for BMRE
 Agricultural loan
 Special finance for non-traditional item
 Syndication Finance
Mood of finance:
 Secured Overdraft: For Work Order, General purpose etc.
 Cash Credit (Hypothecation)
 Cash Credit (Pledge)
 Letter of Credit
 Back to Back L/C
 Loan against Trust Receipt
 Loan against Import Merchandise (LIM)
 Bank Guarantee

Online Banking

24
Online banking is the demand of 21st Century. Standard Bank Ltd. introduced this
online banking facility in limited scale. The bank already establish online system in it
10 branches. They are-
1. Principal Branch
2. Agrabad Branch
3. Khatungonj Branch
4. Dhanmondi Branch
5. Imamgonj Branch
6. Gulshan Branch
7. Foreign Exchange Branch
8. Topkhana Road Branch
9. Jubilee Road Branch
10. Khulna Branch

Chapter-3: General Activity

25
3.1 Profit Rate:
NCC, City & Standard bank down payment is 20% of the CCS amount. It is
considered as equity. The payment is 50% for vehicles.
Advance allowed for retirement of shipping documents w d release of goods imported
through LIC falls under trust with the arrangement that sale proceeds should be
deposited to liquidate the advances within a given period.
This is also a temporary advance connected with import and known as post Import
finance and falls under the category & quot; Commercial Banking.

3.2 Formalities for Opening Foreign Currency (FC) Account:

The AD may without prior approval of the Bangladesh Bank open Foreign Currency
(FC) account in the name of: Bangladesh national residing abroad.
Foreign nationals residing abroad/ in Bangladesh and also foreign firms registered
abroad and operating in Bangladesh and abstract. Foreign Missions and their
expatriate employees.
Resident of Bangladesh nationals working with the foreign/ international
organizations operating in Bangladesh provided their salary in paid in foreign
currency.
3.3 Procedure for Opening Letter of Credit (L/C):
An importer desirous to have an import Letter of Credit (L/C) limit must have applied
to the designated bank in prescribed form for sanction of margin, Letter of Credit
(L/C) limit it etc.
L/C Opening flow chart in case of BTB L/C:
Lien of Export L/C Opening of BTB
L/C under that
Export L/C
ABP (Accepted Bills For Payment)
Under Production Export Made Collection/ Purchase of Export Bills
Collection From Export L/C issuing Bank
Nosto A/C Inform To Head Office
3.4 Letter of Credit (L/C) Application:

26
For opening Letter of Credit (L/C) the client is to submit to the bank an application in
the printed format of the designated bank. This is called Letter of Credit (L/C)
application form, which is also an agreement between the importer and the bank. The
form is to be stamped under stamp Act. The importer must submit the LCA and IMP
and Indent or contract / purchase order/ proforma invoice (duly accepted by the
importer) along with Letter of Credit (L/C) application.
The Letter of Credit (L/C) application must be completed/ filled in and signed by the
authorized person of the importer giving the following particulars. Full name and
address of the supplier or beneficiary and importer. Brief description of the goods.
Last date of shipment and negotiation time (must not be beyond 30 days from the
shipment date).
3.5 Examination of Letter of Credit (L/C) Application:
On receipt of Letter of Credit (L/C) application an officer of L/C section must check it
very careful by the following manner.
That the terms and conditions as stipulated in the L/C application are consistent with
the exchange control and import trade regulation and UCPDC 500.That all the
information mentioned in above column have been furnished. That the terms to be
imported are eligible according to importers entitlement. That the goods are not being
imported or originated form South Africa or Israel. If the goods are imported form
any member countries of ACU.
That the validity of the L/C must not exceed the validity of LCA.L/C is opened within
the validity period permitted in the License. For Letter of Credit (L/C) limit following
information are to be furnished by the applicant.

3.6 Preparation of Credit Report:

Bank prepares credit report in prescribed forms. Character, Capacity and Capital,
which are known as the three C’s of credit. Instead of the three C’s some mentions the
three R’s i.e. reliability, responsibility and resources. To these three C’s we may add
two more C’s i.e. collateral and conditions.

27
3.7 Position of Letter of Credit (L/C):
Import section will see whether there is sufficient fund available in the account to
cover the margin to be sanctioned, commission, postage, cable or telex charge etc. If it
is found O.K, Letter of Credit (L/C) will be sanctioned.
In all cases the sanction must be informed to the importer for acceptance. On
receiving confirmation from the client then the terms and conditions of the sanctioned
are acceptable, the subsequent documentation/ charge document are taken up.
Following papers/ documents submitted by the importer before opening of the L/C:
# Memorandum of (In case of partnership firm).
# Resolution.
# Photo One Copy.
# VAT Registration Certificate.
Bank will supply the following papers/ documents before opening of the
L/C:
- Letter of Credit (L/C) Application Form.
- LCA Form.
- IMP Form.
- Charge Documents Paper.
- Guarantee Form.
The above papers must be completed duly filled in and signed by the party
and verified the signature.
Maintenance of Register:
The sanction must be recorded in the following registers:
– Document Execution Registers. All the charge documents must be recorded
in this register.
- Limit Register.
- Liability Ledger.
3.8 Confidential Report of Beneficiary of Letter of Credit (L/C):
According to exchange control regulations bankers are required to obtain confidential
report of the beneficiary of Letter of Credit (L/C) before opening the same, if the
amount of Letter of Credit (L/C) exceeds Tk. 5 lac. Bank can open Letter of Credit
(L/C) below Tk. 5 lac without obtaining C.R.
28
Banker can write to their foreign correspondents to supply the C.R. But from practical
experience foreign correspondents of different country are not supplied timely. To
overcome the above situation bankers can conduit reference book i.e. Muwn/ Dunn/
Bradstreet/ Trade directory of various chambers of commerce of different countries in
the world. On receipt of C.R. form any source the banker can accumulate the same in
one master file.
3.9 LCA Registration:
Letter of Credit (L/C) authorization forms consisting of six copies. 1 st copy for
exchange control purposes, 2nd copy for the licensing authority, 3 rd and 4 th copies
for the CCI and Procedure or Preparation and Dispatch:
Amendment is to be typed in the Banks printed format. The copies of the amendment
must be dispatched to all concerned as done in dispatching the L/C. Amendment can
be done either by cable/ telex or airmail. Each and every amendment of L/C must be
noted in the L/C file and copies of each amendment are kept in the L/C file
chronologically (date wise).
3.10 Bank Charge:
Amendment commission is to be realized from the party as per instruction of
Bangladesh Bank F.C. circulars.

3.11 Accounting Procedure:

- Dr. Party’s Account.
- Cr. Commission Account.
- Cr. P & T Account.

3.12 Clearing House & Collections of Bill:

According to the Article 37(2) of Bangladesh Bank Order 1972, the banks, which are
the member of the clearinghouse, are called as Scheduled Banks. The scheduled banks
clear the cheques drawn upon one another through the clearinghouse. This is an
arrangement by the central bank where everyday the representative of the member
banks gathers to clear the cheques. Bank for credit of the proceeds to the customer’s
accounts accept cheques and other similar instruments.
29
3.13 Procedures for Collection:
The following procedures are taken for collection,
Procedure for Outward Bills for Collection:
“Payee’s A/C Credited” endorsement
Entries are given in the outward clearing
Register
“Clearing” seal is given Cheque
Cheques are sorted bank wise and entries are given to the computer
Entries are given to the “Clearing House Register”
Crossing of the cheques are done
Depositing the cheque along with Deposit Slip
Crossing of the cheques are done indicating Principal
Branch as collecting bank
Endorsement “Payee’s A/C will be credited on realization” is given
Entries are given in the outward clearing Register
3.14 Definition of Investment:
Investment, transaction between two parties in which one ( the creditor or lender)
supplies money, goods, services or securities in return for a promised future payment
by the other ( the debtor or borrower). Such Transaction normally includes the
payment of interest to the lender.
Investment may be extended by the public or private institutions to finance business
activities, agricultural operation, consumer expenditures or government projects.

3.15 Introduction of Investment:

Modern Investment management is extended through specialized financial institutions
of which commercial banks are the oldest and most important. In present days of
industrial economics, the banks are able to extend and increase the supply of
Investment by the creation of Investment management for their loan customers. The
lender must judge each loan he makes on the basis of the charter of the borrower (his

30
intention to pay), (his capacity to pay), (based on his potential for earning) and his
collateral pledged in case of default on the loan. The terms of Investment transactions
may be publicly regulated to prevent abuses by customers and lenders as well as to
channel Investment in to particular sectors of the economy.
3.16 Problems arising on Gross profit margin:
In this ratio I think there have some problems as usual. For this ratio the Gross profit
means the total operating income is good but in the year of 2018 it was less because
of some company financial weakness. But the next three years the total operating
income is comparatively more than the previous year. Company need more effort for
the operating activities inside of its.

3.17 Own opinion and solutions:

As a internship member of this bank I saw their sales revenue is good. As a banks
their sales revenue is much good. But in the year of 2017 and 2018 they did very well
in this gross profit margin. Both those years their percentage is very good. I suggest
them to follow these two years as a result the up-coming years Gross profit will be far
better.

3.18 My Individual opinion and suggestions:

While doing Internee and making Internship report I think basically the main
problems of NCC, City & Standard Banks are given below. And these problems play
an important role for the ratio analysis fluctuation. For these problems the ratios of
different terms actually fluctuate.

3.19 Nature of the Problem and Challenges

The Non-Islamic banks in the world have been facing a number of challenges. Side by
side, the Non-Islamic banking in Bangladesh is also facing numerous problems of
challenges. First, they have not yet been successful in devising an interest-free
mechanism to place their funds on a short-term basis. They face the same problem in
financing consumer loans and government deficits. Second, the risk involved in
31
profit-sharing seems to be so high that almost all of the Non-Islamic banks in
Bangladesh have resorted to those techniques of financing which bring them a fixed
assured return. As a result, there is a lot of genuine criticism that these banks have not
abolished interest but, they have, in fact, only changed the nomenclature of their
transactions. Third, the Non-Islamic banks do not have the legal support of the
Central bank in Bangladesh, do not have the necessary expertise and trained
manpower to appraise, monitor, evaluate an audit the projects that are required to
finance. As a result, they cannot expand despite having huge excess financial
liquidity. The implementation of an interest-free banking in Banking raises a number
of questions and potential problems which can be seen from the macro and micro
operational point of view.
A partial list of the issues confronting Non-Islamic banks in Bangladesh includes:
Problems Related to Macro Operation of the Non-Islamic Banks
- Liquidity and Capital
- Valuation of bank Assets
- Financial Stability
- The Ownership of Banks
- Lack of Capital Market and Interest-free Financial Instruments
- Insufficient Legal protection
- Controlling and Supervision by the Central bank on the Basis of Non-Islamic
Shariah
- Lacks of Unified Shariah Rulings
- Absence of Non-Islamic Inter-Bank Money Market
- New Banking Regulations
- Accounting principles and Procedures
- Shortage of Supportive and Link Institutions
- Shortage of Skilled and Trained Manpower in Non-Islamic Shariah banking
- Lack of Co-operation among the Non-Islamic Banks
- Lack of Familiarity by International Financial and Non-financial Sector with Non-
Islamic Products and procedures.
- Severe Competitions in the Financial Sector
- Economics slowdown and Political Situation of the Country
32
- Inadequate Track Record of Non-Islamic Banking
- Absence of Infrastructure for International Non-Islamic Trade Financing
- Defaulting Culture of the Borrowers
- Short-term Asset Concentrations in the Non-Islamic Banks
- Lack of Course or paper on Non-Islamic Economics, Banking and Finance at the
Educational Institutions.
- Lack of Uniform Operational procedure of Non-Islamic Banking
- Lack of Specialized Non-Islamic Banks and Non-Bank Financial Institutions
- Lack of Consortium or Syndication of the Non-Islamic Banks
- Lack of Harmonization of Non-Islamic Financial Practices
- Lack of Inter-Country Study on the practical Operations of Non-Islamic Banking
- Lack of Secondary Securitization Market
- Lack of Coordinated Research Work on Non-Islamic Economics, Banking and
finance
- Lack of Apex Training Institute for the Non-Islamic Banks.
Problem Related to Micro Operation of the Non-Islamic Banks:
- Increased Cost of Information
- Control over Cost of Funds.
- Mark-up Financing and Corrupted Mark-up
- Excess Resort to the Murabaha Mode of Financing
- Financing Social Concerns.
- Lack of Positive Response to the Requirement of government Financing.
-Failure of Non-Islamic Banks to Finance High Return Projects.
- Sacrifice of a locative Efficiency
- Loss of Distributive Efficiency.
- Depression of Profit.
- Lack of Full-fledged Shariah Audit.
- Fraud-Forgery or corruption in Non-Islamic Banks.
- Minimum Budget for Research and Development.
- Working Environment.
- Issuance of Letter of Guarantee (L/G)
- Minimum Budget for Research and Development.
33
- Lack of Shariah Manual or Guidelines.
- Non-Islamic Investment Risk Analysis and measurement Methodology.
- Non-exemption of Stamp Duty for Purchasing Property by Banks.
- Lack of Co-operation between Non-Islamic Banks and Non-Islamic NGOs for
extending Micro credit.
- Lack of Establishment of Links with other Training Institutes and Shariah
Supervisory Bodies.
- Lack of Intention of the Management to be strict with Shariah Guidelines. The
above problems are some of the burning problems confronting the NCC, City &
Standard Islami bank in Bangladesh. However, it is felt that much operational work
and in-depth research work has to be undertaken to allow the Non-Islamic banks to
flourish with highest quality and strength. My suggestion is that if the bank
management takes necessary steps for solving these problems then they will be
gainer. In my ratio analysis I just give advice to the Non-Non-Islamic Banks that as
early as possible they must have to change their management and banking
environment. Cause those are very poor that I have seen.

34
 Chapter-4: Theory of Ratio Analysis
4.1 Ratio Analysis:
A tool used by individuals to conduct a quantitative analysis of information in a
Bank's financial statements. Ratios are calculated from current year numbers and are
then compared to previous years, even the economy to judge the Financial
Performance of the bank. Ratio analysis is predominately used by proponents of
fundamental analysis.
Here we basically discuss the traditional approaches of ratio analysis.
Traditional approaches :
 Current Ratio
 Liquid Ratio
 Proprietary Ratio
 Debt Equity Ratio
 Gross Profit Ratio
 Operating Ratio
 Cost of Goods Sold Ratio
 Cash Ratio
 Earning per Share

4.2 Current Ratio

Current assets
Current ratio =----------------------
Current liabilities

4.3 Liquid Ratio

Quick assets
Liquid ratio =----------------------
Quick liabilities

35
4.4 Proprietary Ratio
Shareholders fund
Proprietary ratio = -----------------------------------------
Fixed assets + Current liabilities

4.5 Debt Equity Ratio

Total long term debt
Debt equity ratio = ----------------------------
Total shareholders fund

4.6 Gross Profit Ratio

Gross profit
Gross profit ratio = ----------------- * 100
Net sales

4.7 Operating Ratio

COGS+ operating expanses
Operating ratio = ----------------------------------- * 100
Net sales

4.8 Cost of Goods Sold Ratio

COGS
Cost of goods sold ratio = ----------------------------------- * 100
Net sales

36
4.9 Cash Ratio
Cash+ Bank+ Marketable securities
Cash ratio = -----------------------------------------------
Total current liabilities

4.10 Earning per Share

NPAT
Earning per share = -----------------------------------------------
Number of equity share

37
 Chapter-5: Comparative Ratio Analysis &
Finding
5.1 Comparative Ratio Analysis of Three Bank’s
Table 02: Current Ratio
Name of Ratio NCC City Bank Standard
Bank Ltd. Ltd. Bank Ltd.
2018 2017 2016
Current Ratio 2.07 2.02 1.96

Figure – 1 : Current Ratio

Current Ratio
2.08
2.06
2.04
2.02 Current Ratio
2
1.98
1.96
1.94
1.92
1.9

Interpretation:Comparatively NCC Bank Ltd in a good position where NCC Bank

acquire 2.07 and City Bank 2.02 and Standard Bank 1.96.

Table 03: Quick Ratio

Name of Ratio NCC City Bank Standard
Bank Ltd. Ltd. Bank Ltd.
2018 2017 2016
Quick Ratio .60 .55 .53

Figure - 2: Quick Ratio

38
 Quick Ratio

0.6
0.58
Quick Ratio
0.56
0.54
0.52
0.5
0.48

Interpretation: Comparatively NCC Bank Ltd in a good position where NCC Bank
acquire 0.60 and City Bank 0.55 and Standard Bank 0.53.

Table 4: Cash Ratio

Name of Ratio NCC City Bank Standard
Bank Ltd. Ltd. Bank Ltd.
2018 2017 2016
Cash Ratio .20 .15 .18

Figure – 3 : Cash Ratio

Cash Ratio

0.2
0.18
0.16
0.14 Cash Ratio
0.12
0.1
0.08
0.06
0.04
0.02
0

Interpretation: Comparatively NCC Bank Ltd in a good position where NCC Bank
have a enough liquidity 0.20 and Standard Bank 0.18.And City Bank 0.15
Table 5: Return on Assets

39
 Name of Ratio NCC Bank City Bank Standard
Ltd. Ltd. Bank Ltd.
2018 2017 2016
Return on Assets (ROA)% 4.04 3.04 2.26

Figure - 4: Return on Assets

Return on Assets (ROA)%

4.5
4
3.5
3 Return on Assets (ROA)%
2.5
2
1.5
1
0.5
0

Interpretation:NCC Bank Ltd. takes 4.04% in 2018-2019 year where City Bank
3.04% and Standard Bank 2.26% only Comparatively NCC Bank Asset portion is
much.

Table 6: Return on total equity

Name of Ratio NCC City Bank Standard
Bank Ltd. Ltd. Bank Ltd.
2018 2017 2016
Return on Total equity (ROE) 18.16 18.16 17.41

Figure - 5: Return on Total equity

40
 Return on Total equity (ROE)

Interpretation: NCC Bank and City Bank Take in Same Place about to earn Return
on Equity (ROE)And Standard Bank take Comparatively Low.

Table 7: Return on Deposits

Name of Ratio NCC City Bank Standard
Bank Ltd. Bank Ltd.
Ltd.
2018 2017 2016
Return on Deposits (ROD) 3.12 2.12 2.56

Figure - 6: Return on Deposits

Return on Deposits (ROD)

Interpretation: Comparatively NCC Bank Ltd in a good position where NCC Bank
have an enough Deposit3.12 and Standard Bank 2.56.And City Bank 2.12.
41
 Table 8: Debt to Total Capital
Name of Ratio NCC Bank City Bank Standard
Ltd. Ltd. Bank Ltd.
2018 2017 2016
Debt to Total Capital 90% 80% 75%

Figure – 7 : Debt to Total Capital

Debt to Total Capital

Interpretation: Standard Bank takes comparatively good Balance of debt and

equity Ratio NCC Bank take comparatively high and City Bank in average.

Table 9: Debt to Equity

Name of Ratio NCC Bank City Bank Standard
Ltd. Ltd. Bank Ltd.
2018 2017 2016
Debt to Equity 85 75 72

Figure – 8 : Debt to Equity

42
 Debt to Equity

Interpretation:Standard Bank takes comparatively good Balance of debt and equity

Ratio NCC Bank take comparatively high and City Bank in average. Where NCC
Bank 85% and City Bank 75% and Standard Bank 72%.

Table 10: Operating expenes to revenue

Name of Ratio NCC City Bank Standard
Bank Ltd. Ltd. Bank Ltd.
2018 2017 2016
Operating expenses to 2.70 2.65 1.73
revenue (OER)

Figure – 9 : Operating expenses to revenue

43
 Operating expenses to revenue (OER)

Interpretation: ComparativelyStandard Bank Ltd.in a good position Operating

expenses to revenue (OER)than City Bank Ltd. and NCC Bank in Higher Place to
Producing Operating Services Expensesagainst Generating Revenue.

44
5.2 Comparative Analysis of Three Bank’s

Table 11 : Comparative Analysis

Name of Ratio NCC City Bank Standard
Bank Ltd. Ltd. Bank Ltd.
2018 2017 2016
Current Ratio 2.07 2.02 1.96
Quick Ratio .60 .55 .53
Cash Ratio .20 .15 .18
Return on Assets (ROA)% 4.04 3.04 2.26
Return on Total equity (ROE) 18.16 18.16 17.41
Return on Deposits (ROD) 3.12 2.12 2,56
Debt to Total Capital 90% 80% 75%
Debt to Equity 85 75 72
Operating expenses to 2.70 2.65 1.73
revenue (OER)

Figure – 10 : Comparative Analysis

Comparative Analysis of Three Bank’s

80
60
40
20
2018-19
0
l 2017-18
o o o % ) ) ty )
ati ati ati A) OE OD p ita ui ER 2016-17
R R R O (R R a q (O
nt ck as
h (R ty s( lC to
E
ue
r re Q ui C ets qui o sit ota t en
u s e p T e b v
C As al De tt
o D re
on Tot o n b to
rn on n De es
etu r n tur ns
R tu Re e
p
Re ex
ng
r ati
e
Op

45
Interpretation: Comparatively Standard Bank Ltd. in a good Position on Ratio
Analysis than City Bank Ltd. on average Standard Position But NCC Bank face
Higher debt and equity Ratio.

5.3 SWOT Analysis

Every organization is composed of some internal strengths and weaknesses and has
some external opportunities and threats in its whole life cycle. The following will
briefly introduce the customers to The Bank’s internal strengths and weaknesses and
external opportunities and threats as I have explored that are:

“S”- Strengths
“W”-Weaknesses
“O”-Opportunities
“T”-Threats
Strengths
 Stable source of fund
 Strong Liquidity Position
 Wide Network of branches
 Experienced Top management
 Diversified Product line
 Satisfactory IT infrastructure and online banking

46
Weaknesses
 Asset infection rate is still high
 Relatively high  overhead expense
 Problem in Delivery

Opportunities
 Regulatory environment favoring
 Private sector development
 Credit card business
 SME and Agro based industry loan

Threats
 Deposits as well as quality assert
 Market pressure for lowering the interest rate
 Shrinkage in export, import and guarantee
 Business due to economic slump and war
 Frequent currency devaluation
 Emergence of Competitors

Findings:
This Report is focused on the Ratio Analysis of NCC, City & Standard Bank Limited.
Now I will discuss in brief, what I have found after this report under the ratio
Analysis.
 In appraisal system, the competitive position analysis is not focused while
doing the appraisal system
 Lengthy lending process of NCC Bank
 Lack of documentation of Standard Bank
 Standard Bank in poor position about monitoring of credits
 Comparatively Shortage of efficient manpower City Bank.

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 The product appraisal is done on the customer base not any comparison is
done with other product by all three Banks.
 Private Commercial Bank also provides some social working activity in the
country by all three Bank.
 Interest rate of micro-credit is higher to the poor farmer with the proper
knowledge of agriculture especially in the developing areas by All three
Banks.

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 Chapter – 6: Recommendation & Conclution
6.1 Recommendations
On the basis of observation, SWOT analysis, Ratio analysis, and employee’s
comments I have some recommendations for NCC, City & Standard Bank Limited to
capture more market share and to make the Internal environment more active. I hope
these recommendations would help them to compete with their competitors. I think
they should follow those rules and regulations for their future betterment. A NCC,
City & Standard Bank Limited does not have enough advertisements for their
products, so NCC, City & Standard Bank Limited needs more advertisement to
promote their products. NCC, City & Standard Bank Limited should do this kind of
job within a short time. This is heartiest request to all the governing bodies to
maintain proper environment and proper ways and to give the best customer service
for keep the market strong.

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6.2 Conclusion
NCC, City & Standard Bank Limited is a non-government commercial Bank in
Bangladesh, which started its business from 1995.I t is a unique combination of
Shariah & amp; Non-Islamic banking. Among non-government commercial banks,
NCC, City & Standard Bank Limited is a milestone for economic development. It has
been playing an important role to eradicate the unemployment problem in
Bangladesh. Over 800 employees and 5500 shareholders are getting benefit from this
organization. But most of the people in our country have misconception about Non-
Islamic banking specially NCC, City & Standard Bank Limited. They cannot find any
difference in its operation between conventional commercial Banks because they have
no clear idea about the activities as well as investment mechanism of banks. The
Banks is committed to run its activities as NCC, City & Standard Bank Limited.
People is getting more benefit from the dealings of Non-Islamic banking because here
quarterly interest is not charged and there is no possibility of interest to be converted
into principal. But here honesty is the only pre-requisite. For ensuring more benefit,
more facility from NCC, City & Standard Bank Limited we have to be honest and
more sincerer repay the taken money from these banks in time.

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Bibliography:
 NCC Bank Limited
 City Bank Limited
 Standard Bank Limited
 www.nccbank.com
 www.citybank.com
 www.google.com
 www.wikipedia.org
 Bangladesh Bank website.

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