Internship Report

On
Financial Performance of Bangladesh Commercial Bank Limited

Submitted To:
Fatema Nusrat Chowdhury
Assistant Professor
Department of Business Administration
Faculty of Business and Entrepreneurship
Daffodil International University

Submitted By:
Mofashara Ema
ID No: 183-11-5985
Major in Finance
Department of Business Administration
Daffodil International University

Date of Submission: 30 May, 2023

 Letter of Transmittal

Date: 30thMay, 2023

Fatema Nusrat Chowdhury
Senior Lecturer
Department of Real Estate
Faculty of Business and Entrepreneurship
Daffodil International University

Subject: Submission of Internship Report on “Financial Performance of Bangladesh

Commercial Bank Ltd.”

Dear Madam,

I have prepared a report on the "Financial Performance of Bangladesh Commercial Bank

Ltd." for my internship. As a requirement for completing the BBA degree program and
under your kind supervision, I must complete the following. I've done my utmost to prepare
the report in accordance with the optimal standard per your direction.

This report provides insight into Bangladesh Commercial Bank Ltd. Limited's performance
and how they create value for their stakeholders. To evaluate BCBL's performance, I
analyzed a number of ratios using vertical and horizontal data analysis. I've created graphs to
better analyze the performance.

In this report, I made every effort to reveal deeper insight. I trust this satisfies your standards
of judgment.

Thanking you for your kind supervision.

Sincerely yours,

____________
Mofashara Ema
ID No: 183-11-5985
Major in Finance
Department of Business Administration
Daffodil International University
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 Student Declaration

I do hereby solemnly declare that the work that is provided in this Internship Report has been
carried out by me and has not previously been submitted to any other
University/College/Organization for the purpose of obtaining an academic credential or
degree.

I, Mofashara Ema, ID: 183-11-5985, declare that the presented internship report
on“Financial Performance of Bangladesh Commercial Bank Ltd.”.Submitted as a course
requirement for the award of the degree of Bachelor of Business Administration at Daffodil
International University was prepared by me.

The work that I have provided does not violate any copyright that is already in place, and no
part of this report is a copy of any earlier work, whether it was done for a degree or for any
other purpose.

I also agree to pay for any damages resulting from a breach of the preceding obligations.

Mofashara Ema
ID No: 183-11-5985
Major in Finance
Department of Business Administration

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 Letter of Acceptance

This is to certify that the work entitled “Financial Performance of Bangladesh Commercial
Bank Ltd.” is an original work by Mofashara Ema, ID #183-11-5985, Major in Finance,
Department of Business Administration, Daffodil International University, completed his
internship report under my supervision and submitted for the partial fulfillment of the
requirement for award of Bachelor of Business Administration (BBA) from Daffodil
International University.

Mofashara Ema bears a good moral character and possesses a pleasing personality. He is
active, sincere, hardworking, and dutiful and meticulous.

I wish his success at every steps of his life.

_____________________
Fatema Nusrat Chowdhury
Senior Lecturer
Department of Real Estate
Faculty of Business and Entrepreneurship
Daffodil International University

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 Preface
While theoretical understanding is crucial, practical experience is as vital in any field. We've
come a long way, baby, from the days when banks' only functions were to accept deposits
and provide loans. There has been a global shift away from antiquated banking ideas and
practices, and Bangladesh is no exception. The banking business has grown immensely
across all sectors, to the point where it is no longer an exaggeration to call it the "hub" of the
economy. The growing dependency of banks on economic expansion makes this a crucial
issue.

Students must independently compile reports based on their findings and hand them in to
their assigned faculty advisors.

I'm done with school and ready to dive headfirst into a more varied and expansive
professional life. My mental mirror is breaking down and can no longer reflect my thoughts.
Even with all of its wealth, Bangladesh ranked among the world's poorest nations. The study
of Bangladesh Commercial Bank Ltd. (BCBL) bears tremendous relevance in that small
industries are increasingly playing essential roles in the export business sector of the country,
and this knowledge is sharpened through internship experience. A major turning point in my
professional development, I believe.

Having the chance to intern at Bangladesh Commercial Bank Ltd. is a tremendous privilege.
During my internship, I have felt like a valued member of the team, and I have made every
effort to compile accurate data for the internship report. If this report aids other students in
their research or related organizations, then my time and work were not completely wasted.

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 Acknowledgement
Firstly, I would like to express my gratitude to the almighty Allah to give me the strength to
complete the study within the stipulated time.

I am extremely grateful to my esteemed internship supervisor Fatema Nusrat Chowdhury,

Assistant Professor, Department of Business Administration, Faculty of Business and
Entrepreneurship, Daffodil International University, for assigning me this report and
providing me with all the necessary assistance to complete it. Her insightful advice and
direction greatly assisted me in preparing this report in an organized manner. I would like to
thank the entire Department of Business Administration for allowing me to participate in an
internship and for assisting me in writing this report. I would also like to recognize and
acknowledge my family for their support and assistance throughout the entire process of
writing this report.

I also want to express my gratitude to Mr. Mohammad Khalequzzaman Masud, AVP &
Branch Manager, BCBL, Moulvibazar Branch, Dhaka, for directing and guiding me during
my internship program duration and allowing me to conduct my job in a pleasant
environment. I also appreciate all of the personnel's cooperation and kind help to me. I'm also
appreciative to BCB's Human Resources Department for allowing me to complete my
internship program here.

Finally I would like to thank all of my friends who have shown keen interest to make my
internship a success.

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 Executive Summery

The purpose of this article is to use ratio analysis to demonstrate Bangladesh Commercial
Bank Ltd.'s financial performance. The study begins with the researcher's attempts to acquire
practical knowledge through in-person interviews with relevant bank personnel, informal
interviews with bank customers, on-the-job experience, and the bank's annual report. This
study was written after extensive, primarily descriptive, investigation. Data analysis was
performed using both quantitative and qualitative methods, and the results were presented in
Microsoft Word and Excel documents. The goal of this research is to examine the pattern of
Bangladesh Commercial Bank Ltd.'s rising and broadening financial performance. However,
the researchers were hampered in their efforts to finish the report by factors such as a lack of
readily available statistical data; an inadequate number of relevant books; and a lack of time.

Background information on Bangladesh Commercial Bank Ltd. There are two major state-
owned commercial banks in Bangladesh, and the second largest is Bangladesh Commercial
Bank Ltd. Its inception can be traced back to the 1972 Banks Nationalization Order.
Everything from the bank's goals and objectives to its organizational structure and
departments has been laid out for you. BCBL's greatest vulnerability is that it lacks
information, technology resources, and promotional activities, which could have a negative
impact on the bank's vast client base with huge amounts of deposit and market potentiality.

BCBL's earnings per share, net profit margin, and market value can all benefit from a
reduction in the company's debt ratio. If BCBL is able to improve its liquidity by increasing
its ROA and ROE, it will be able to extend its financial performance activities. In the end, it's
clear that BCBL's finances are being managed quite effectively. BCBL is prepared to take on
the challenge and will capitalize on the improving economic climate.

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Acronyms & Elaborations

Acronyms Elaborations
BCBL Bangladesh Commercial Bank Ltd
B/E Bill of Entry, bill of exchange
CR Corporate Responsibility
CSR Corporate Social Responsibility
BDT Bangladeshi Taka
ATM Automated Teller Machine
MSDS Monthly Savings Deposit Scheme
FDR Fixed Deposit Receipt
CD Current deposit
STD Short Term Deposit
CC Cash Credit
DC Debit card.
LC Letter of Credit
PO Pay Order
DD Demand Draft
TT Telegraphic Transfer
KYC Know Your Customer
TP Transaction Profile
E-Banking Electronic-Banking
SWIFT The Society for World Wide Inter-bank Financial
Telecommunication

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 Table of Content
SL No Subject Page. No
Preparatory Part

1 Letter of Transmittal II
2 Student Declaration III
3 Letter of Acceptance IV
4 Preface V
5 Acknowledgement VI
6 Executive Summery VII
7 Acronyms & Elaborations VIII
8 Table of Content X
9 Table of Figure XI

Chapter One
Introduction

1.1 Introduction of the study 2

1.2 Origin of the study 2
1.3 Significance of the study 2
1.4 Objective of the study 2
1.5 Scope of the study 3
1.6 Methodology of the study 3
1.7 Source of Data 4
1.8 Limitation of the study 4
Chapter Two
BCBL Profile

2.1 Overview of the BCBL 7

2.2 BCBL at a Glance 8
2.3 Vision 9
2.4 Mission 9
2.5 Strategies 9
2.6 Branch Network 9
2.7 Organism of Management of BCBL 11

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SL No Subject Page. No
Chapter Three
Operational performance
3.1 Banking Department 14
3.2 General Banking Department 17
3.3 Account & Clearing Department 19
3.4 CSR (Corporate & social Responsibility) 20
Chapter Four
Analysis
4.1 SWOT Analysis of BCBL 22
4.2 Financial Performance by trend analysis 24
4.3 Vertical analysis 39
4.4 Horizontal analysis 41
Chapter Five
Findings
5.1 Findings of Operational Performance 44
5.2 Financial Performance 45
5.3 Problems from Critical Observation 46
Chapter Six
Recommendations & Conclusion
6.1 Recommendations 48
6.2 Conclusion 49
Reference 50

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 Chapter-One
Introduction
1.1Introduction of the study:

Through the Internship program, students can gain an in-depth understanding of the practical
orientation and knowledge's of the dynamic business world. In order to prepare the Internship
report for the Department of Business Administration at Daffodil International University,
students who wish to earn their MBA must conduct an exhaustive study. During the
preparation of the Internship report, students are guided and supervised by the department's
faculty to which they are affiliated. As part of the program, I am ecstatic to be joining
Bangladesh Commercial Bank Ltd and choosing the topic "Financial Performance of
Bangladesh Commercial Bank Ltd." There, I worked in a number of departments, but I had to
choose an area of study where I could conduct in-depth investigation and present my
understanding in a report.

1.2 Origin of the study:

The Bachelor of Business Administration (BBA) Program requires a three-month internship
followed by a study assigned by the university's supervisor. I was an intern with the
MoloviBazar branch of (BCBL). As part of the requirements for the BBA degree, my
supervisor has requested that I conduct research on "Critical factors working behind the
Investment approval process of Islami Bank - a study on BCBL" at the MoloviBazar branch
of BCBL.
1.3 Significance of the study:
One of the leading private banks in Bangladesh is Bangladesh Commercial Bank Ltd.
Through its wholly owned subsidiaries and other distribution channels, BCBL provides a
comprehensive suite of banking products and financial services to corporate, SME, and retail
clients. The bank has made its mark in private sector banking with its 187-strong branch
network, Off-shore Banking Unit, mobile Financial Service (UCash), Upay, Agent Banking,
priority Banking (BCBL Imperial), remittance Services, Credit Card Business, and a
dedicated workforce of 4,982. The bank aspires to be a leader in nationwide financial
inclusion and green banking programs, with a particular emphasis on RMG, import-export,
agriculture, the SME sector, and retail commerce.

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1.4 Objectives of the study:
The primary goal of this research is to examine Bangladesh Commercial Bank Ltd.'s operational
and financial results.The following sub-goals have been established as means to accomplish the
overall aim.The following are some of the more narrow aims of the research:
 In order to gain insight into Bangladesh Commercial Bank Ltd.'s service plans and
operational performance standing via SWOT Analysis .
 To analyze Financial Performance through trend analysis, ratio analysis, vertical
analysis, and horizontal analysis using Bangladesh Commercial Bank Ltd's most
recent five-year data.
 To identify problems based on the overall performance of Bangladesh
Commercial Bank Ltd. and to make recommendations for the bank's future
growth.
1.5 Scope of the Study:
This research is based on my experiences and observations made while interning at the
Moulvibazar Branch of Bangladesh Commercial Bank Ltd. Limited.Bangladesh Commercial
Bank Ltd. Limited's investment approval process was analyzed in detail to shed light on the
bank's financial health and performance during the past five years. My research focuses
almost exclusively on the Bangladesh Commercial Bank Ltd. Limited. Over the course of my
three-month internship, I have had the opportunity to see nearly every facet of the company.
In contrast, this research takes a fresh look at BCBL's financials. Those interested in learning
more about Bangladesh Commercial Bank Ltd. Limited's investment strategy and making
bank-to-bank comparisons may find this article useful.

1.6 Methodology of the Study:

Studies employ a wide variety of research strategies, each optimized for a specific field of
inquiry. Since this study focuses on analyzing financial statements, specific procedures were
followed to achieve the study's aims, make the most of its opportunities, and circumvent its
constraints as much as possible in order to produce reliable results. This investigation made
use of four distinct research strategies. This strategy is:

 Qualitative Method:Qualitative techniques have focused on elucidating meaning by

detailing its nature and scope. To maintain the quality of my research, I have evaluated
the financial accounts from a variety of angles, and I have used the qualitative research
approach to help me get to my conclusions.

 QuantitativeMethod:Research that relies on quantitative measures of various features is

called quantitative. It can be used for any phenomenon whose details can be expressed
numerically. Some statistical content analysis and significance testing were performed
using the quantitative methods employed in this investigation.

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 Analytical Method:Analytical research requires the researcher to evaluate information or
data that already exists and draw conclusions based on that analysis. The financial
performance of BCBL has been analyzed by ratio analysis and evaluated in this study.

 Descriptive Method:Various types of surveys and fact-finding inquiries are included in

descriptive research. BCBL's financial statements, ratios, graphs, financial performance,
financial trend, and current financial condition are described descriptively in this update.
The analysis of financial statements requires a combination of mathematical equations,
graphical display, and explanation. Consequently, I have utilized the aforementioned four
types of research methodologies to obtain accurate and fruitful results from my research.

1.7 Sources of Data:

Data have been collected primarily from two sources, including primary data sources and
secondary data sources.
 Primary Sources of Data:

 Face to face conversation with the employees, senior officers, SPO and the Manager.
 Studying different relevant files like register books, statement of affairs, financial
statements etc.
 Practical work at BCBL during my internship program to increase my knowledge.

 Secondary Sources of Data:

 Annual study including financial study of BCBL.

 Website of BCBL.
 Journals and prospectus of BCBL.
 Different books, magazines and journals related to the finance and banking.
 Different websites and blogs.

1.8Limitation of the Study:

There were limitations encountered during the internship period, as it is extremely
challenging to analyze a bank's financial statements for the past five years. Here are a few
limitations of my research:
 The time limit of the internship is only 3 months which is very short period of time to
learn about whole banking activities.
 As annual study needs 3-4 months to be published after end of the period, I cannot
collect the recent annual financial study (2023) of BCBL.
 As final financial statements are prepared in head office, it becomes difficult to
understand the elements of the statements from branch office.

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 When I have prepared the classified financial statement from unclassified one then I
faced problem to replacement of the items of the statement, because the duration of all
items are not properly mentioned.
 There were lack of proper secondary information about Bangladesh Commercial Bank
Ltd. Limited and its products. Annual study, policy guidelines, website and other
related documents do not cover full and sufficient information.
 As the bank officials are so much busy that it was difficult for them to co-operate with
me, which is also a constraint for this study are requested to consider these limitations
while reading and justifying the part of my study.
 Lack of adequate Information of banking institution for preparing this report, so this
report is based on only publicly available information.
 Although bankers have tried their best to help me, their nature of job is such that gives
them little time to discuss.
 It was very difficult to get the actual information.

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 Chapter –Two
BCBL Profile
2.1Overview of the BCBL:
Beginning its journey in the middle of 1998, Bangladesh Commercial Bank Ltd (BCBL) has
grown from its modest beginnings to become one of the most prominent private commercial
banks in Bangladesh.

Without the extraordinary people (entrepreneurs) that BCBL has helped to develop, nurture,
and build, Bangladesh would not have the robust economy that it does today. BCBL is listed
on the Dhaka Stock Exchange Limited and the Chittagong Stock Exchange Limited, and it is
also one of the top 30 listed businesses in Bangladesh according to the DSE30 Index, which
was created by the internationally famous ratings agency S&P.

Through its wholly owned subsidiaries and other distribution channels, BCBL provides a full
suite of banking offerings and financial services to corporate, SME, and retail clients. The
bank has made its mark in the private sector banking industry with its 187 branches, Off-
shore banking unit, portable financial service (Sure cash), Agent Banking, first banking
(BCBL Imperial), remittance products and services, credit card business, and a dedicated
human capital of 4,982. This is all thanks to the bank's boutique service, innovative practices,
dynamic problem-solving approach, and efficient management. The bank aspires to be a
leader in nationwide financial inclusion and environmentally friendly banking programs, with
a particular emphasis on RMG, import-export, agriculture, the SME sector, and retail
commerce. The
BCBL Capital Management Limited (which offers stockbroker services for the capital
market) and BCBL Investment Limited (which plans to engage in full-fledged merchant
banking activities in Bangladesh) are both wholly owned subsidiaries of the bank.
Distinguished businesspeople, financiers, and operational experts make up BCBL's Board of
Directors. There are a total of 19 people on the Board of Directors, 3 of whom are
independent, plus the managing director. Executive Committee, Audit Committee, and the
Risk Management Council are the three subcommittees reporting to the Board.

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2.2 BCBL at a Glance
Name Bangladesh Commerce Bank Limited

Date of Incorporation 1 June 1998

Legal Status A public limited company incorporated in Bangladesh on

June 01, 1998 under the Companies Act 1994, the Bank
Company Act 1991 and Act 12 of 1997.

Our Core Business Commercial banks in Bangladesh include Bangladesh

Commerce Bank Limited. BCBL's main focus, as it is with
all commercial banks, is on collecting deposits and making
loans. It's a bank that offers a variety of financial products
and services to a wide range of customers. Among the
services provided are the establishment of various deposit
accounts (such as checking, savings, and other plan
accounts) and the provision of loans to both enterprises and
people.
BCB generates a profit by exchanging its customers' small,
short-term, relatively liquid deposits for bigger, medium-
term, and long-term loans. BCB receives a net profit from
these asset conversion activities. BCB also engages in
investment banking, albeit this is not its primary focus.
When it comes to wholesale and retail banking, however,
BCB's primary focus is on deposit and loan activities for
individual and business clients. In addition to the
aforementioned services, most financial institutions also
offer credit cards, smartphone banking, custodial service
and assurances, cash management and settlement, and trade
finance.

Authorized Capital BDT 10,000 Million

Paid up Capital BDT 1,989 Million

Face Value per Share BDT 100 per share

Company Registration C-35510(2286)/98

Number

Bangladesh Bank License BRPD(P)744(KHA)/99-2842

Number

Registered Head Office Eunoos Trade Center (Level-22), 52-53 Dilkusha C/A,
Dhaka – 1000, PABX: 9559831,Fax: 9568218

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2.3 Vision
 Objective To develop into the people's bank of choice through providing valuable
services to the community.
2.4 Mission
 With a dedicated and skilled staff, Bangladesh Commerce Bank Ltd. will do all it
takes to meet the financial demands of its customers and earn their loyalty, so
ensuring the bank's continued success, profitability, and ability to aid in the nation's
economic growth and social progress.

2.5Strategies
 To ensure that the company's core activities continue to expand while upholding the
intended public image.
 In order to: Acquire cutting-edge resources and ideas; and Promote broad financial
participation.
 Improve risk management practices and institutionalize a culture of compliance
 Raise the number of satisfied customers, keep up the rate of growth in deposits, and
cut down on nonperforming assets.
 Establishing a solid foundation of best practices in corporate governance.
 To build customer loyalty through relationship banking and steady enhancement of
service quality
 All socioeconomic groups should have access to banking services.
 Observance of the "Green Banking Guideline" released by the Bangladesh Bank will
help to guarantee investments that are kind to the planet.
 The need to enhance the capital base and provision gap necessitates taking appropriate
steps.
 Enhancing management skills and the caliber of human resources in order to foster an
active, engaged workforce through competitive pay is a top priority.
 To serve as a model for the country's economic and social progress.

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2.6Branch Networks
Allthe branches are computerized under distributed server environment. Another few branch
are planning to open very soon. BCBL has started their on-line, SMS and ATM banking
facilities for their clients. Twenty-three new branches were opened amid 2017 to have 165
branches to extend the managing an account benefit at the entryway ventures of the clients
the nation over and to give internet saving money administrations to an extensive variety of
clients.

Figure 2:Branch Network

Source: http://www.BCBLbd.com/category/brlocation_growth/

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2.7Organism of Management of BCBL
Organism of BCBL:-

Name of the Directors Status in Board

Dr. Engr. Rashid Ahmed Chairman

Chowdhury,

HajeeYunus Ahmed Vice Chairman

Anisuzzaman Chowdhury Chairman- Executive Committee

Akhter MatinChaudhury, Chairman- Audit Committee

(Indenpendent Director)
FCA (E&W), FCA, FCS

M. A. Sabur Chairman- Risk Management

Committee

Hajee M.A. Kalam Director

Nurul Islam Chowdhury Director

Bazal Ahmed Director

Asifuzzaman Chowdhury Director

Roxana Zaman Director

Bashir Ahmed Director

Afroza Zaman Director

Md. Tanvir Khan Director

Syed Kamruzzaman Director

Farid Uddin Ahmed Director

Muhammed Shah Alam Director

Syed Mohammed Nuruddin Independent Director

Dr. Salim Mahmud Independent Director

Mohammed Shawkat Jamil Managing Director

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 Table-4: Executive Committee
Name of the Directors Status in Committee

Executive Committee

Anisuzzaman Chowdhury Chairman

HajeeYunus Ahmed Member

M.A. Sabur Member

Nurul Islam Chowdhury Member

Asifuzzaman Chowdhury Member

Bazal Ahmed Member

Md. Tanvir Khan Member

Audit Committee

Akhter MatinChaudhury, Chairman

Syed Mohammed Nuruddin Member

Bashir Ahmed Member
Syed Kamruzzaman Member
Muhammed Shah Alam Member
Risk Management Committee

M.A. Sabur Chairman

Anisuzzaman Chowdhury Member

Bazal Ahmed Member

Roxana Zaman Member

Farid Uddin Ahmed Member

ATM Tahmiduzzaman, FCS Company Secretary
(Source: Annual Report of BCBL, 2022)

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2.7 Management Organogram of Bangladesh Commercial Bank Ltd.
Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

First Vice President

Vice President

First Assistant Vice President

Assistant Vice President

Senior Executive Officer

Executive Officer

Senior Officer

Junior Officer

Figure-1: Management Organogram of Bangladesh Commercial Bank Ltd.

(Source: Annual Report-2022)

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 © Daffodil International University

Chapter- Three
Operational performance
3.1Banking Department
A company's most valuable resources are its products and services. When it comes to
providing specialist services to individuals and organizations around the country, BCBL is
indispensable. Bangladesh Commercial Bank Ltd. offers the following products and services.
Deposit Product
 Current deposit
 Savings deposit
 Special Notice deposit
 Fixed deposits
 Foreign Currency deposit
 BCBL Multi Millionair
 BCBL Money Maximizer
 BCBL Earning plus
 BCBL DPS plus
 BCBL Youngsters savings
 BCBL Youngster DPS
 BCBL Saving plus
 BCBL Women savings
 BCBL Women DPS plus
 BCBL NRB savings
 BCBL NRB DPS plus
 BCBL RMG DPS plus

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Loan Product
 Trade finance
 Industrial Finance
 Import Finance
 Export Finance
 Loan Finance
 Working Capital Finance
 Packing Credit
 Transport Loan
 Lease Finance
 Hire Purchase Loan
 House Building Loan
 Home Loan
 Consumer Credit Scheme
 Auto Loan
 Doctors Loan
 Marriage Loan
 Education Loan
 Hospitalization Loan
 Travel Loan
 CNG Conversion Loan
 Home Mortgage Loan
 House Hold Durable Loan
 Credit Card

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Other services
 Western Union Money Transfer
 SMS Banking Service
 Online Service
 Inward &Outwart Remittances
 Travelers Cheques
 Underwriting & Bridge Financing
 Locker Service
 Offshore Banking
 Loan Syndication
 Ucash (Mobile Financial Service)

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3.2General banking
General Banking is the starting point of all banking operation. It is a combination of activities
of different sections.
General banking has 5(five) section in the bank. These sections are as follows:
(a) Dispatch
(b) Accounts Opening Section.
(c) Cash section.
(d) Clearing Section.
(e) Remittance Section.
(f) Accounts Section.
(g) Foreign Exchange
(h) Others

Dispatch
Inward and Outwards Mails
Inward and outwards mails is said to be Dispatch. It includes all correspondence, letters,
statements and returns and telegrams. This dispatch is also known as Mail. The dispatch is
primary divide into two categories:
Inward: It means what are receives form the outside.
Out Word: It means what are sent to the outside.
This dispatch also divided into-
(a) Ordinary,
(b) Registered and
(c) Local.

One copy of all correspondence should be kept in the office's master file, and another copy
should be kept in the mail room.
Products & Service
The goods and services offered by a company are its most valuable resources. BCBL's most
notable contribution is the provision of specialized services to clients and agencies around the
country. Products and services offered by Bangladesh Commercial Bank Ltd.

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Deposit Product
 Current deposit
 Savings deposit
 Special Notice deposit
 Fixed deposits
 Foreign Currency deposit
 BCBL Multi Millionair
 BCBL Money Maximizer
 BCBL Earning plus
 BCBL DPS plus
 BCBL Youngsters savings
 BCBL Youngster DPS
 BCBL Saving plus
 BCBL Women savings
 BCBL Women DPS plus
 BCBL NRB savings
 BCBL NRB DPS plus
 BCBL RMG DPS plus
Loan Product
 Trade finance
 Industrial Finance
 Import Finance
 Export Finance
 Loan Finance
 Working Capital Finance
 Packing Credit
 Transport Loan
 Lease Finance
 Hire Purchase Loan
 House Building Loan
 Home Loan
 Consumer Credit Scheme
 Auto Loan
 Doctors Loan
 Marriage Loan
 Education Loan
 Hospitalization Loan
 Travel Loan
 CNG Conversion Loan
 Home Mortgage Loan
 House Hold Durable Loan
 Credit Card

© Daffodil International University

Other services

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  Western Union Money Transfer
 SMS Banking Service
 Online Service
 Inward &Outwart Remittances
 Travelers Cheques
 Underwriting & Bridge Financing
 Locker Service
 Offshore Banking
 Loan Syndication
 Ucash (Mobile Financial Service)

3.3Accounts & Clearing Department

The Accounts section handles the income and expenses of the bank's branches and stores,
while the Accounts opening section serves as the customer's point of entry for banking
transactions. The relationship between the bank and the person who deposits money can be
described as one of debtor and creditor. a variety of factors, including the type of the deposits,
the bank is obligated to return an equal quantity on demand, upon notice, or at the conclusion
of the specified period, with or without interest.

It is the most fundamental role that a bank can play. A bank account is a type of account that
allows a person to conduct financial transactions with a bank for a particular reason. A bank
account is defined as "a contractual contract between a bank and its consumer, allowing the
client to use bank services for a fee." This definition comes from the Dictionary of Banking
and Finance. It is possible to open an account under the name of an individual or a company.

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3.4CSR (Corporate & social Responsibility)

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 Inauguration Of Bangladesh Commercial Bank Ltd. National School Hockey
Tournament 2016
 BCBL Handed Over 50,000 Blankets to Prime Minister Relief Fund for Cold Heated
People
 Closing Ceremony Of Bangladesh Commercial Bank Ltd. Golf Tournament 2017
Held
 Inauguration Of Bangladesh Commercial Bank Ltd. Golf Tournament 2015
 BCBL Donated 1 Crore Taka to Prime Minister Relief Fund for Flood Affected
People
 Opening of BCBL Children Science Congress 2017
 Closing Ceremony of BCBL Children Science Congress 2014
 Inaugurations of BCBL School Banking at Khajura M. N. Mittro High School,
JessoreBangladesh Commercial Bank Ltd..

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Chapter- Four

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 Analysis
4.1 SWOT Analysis of BCBL
The SWOT analysis is a useful tool for assessing the relative merits of a business. The
acronym "SWOT" refers to this type of analysis. The primary goal of a SWOT analysis is to
determine which strategies are most appropriate for a company given its resources and
capabilities and the demands of its operating environment. Therefore, a company's strategic
options based on a SWOT analysis should capitalize on the firm's strengths in order to make
the most of opportunities, mitigate risks, and address areas of weakness.

There are two main ways in which a company's environment might be described using SWOT
analysis. Those things are:
a) Analysis of the internal environment encompasses both positives and negatives.
b) Analysis of the external environment, which takes into account potential benefits and
dangers.
SWOT analysis – United Commercial Bank:
During my time as an intern at United Commercial Bank, I was able to identify several
factors that, in my opinion, contribute to the bank's strengths, opportunities, weaknesses, and
dangers. Here are several examples:
Strengths:
 Since it is a sizable financial institution, it can afford to employ skilled workers.
 The branch office is at a good spot for doing company.
 There is currently no funding issue, and the bank's asset position is very healthy.
 The bank has sufficient capital to weather the many storms of the market economy.
 Since it is a government-owned bank, it receives unwavering backing from the
government for its endeavors.

© Daffodil International University

Weakness:

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  Many managers have retired, creating a severe shortage of staff at the bank.
 Internal processes were slowed down by red tape.
 Workers' disinterest in their work.
 Pay scales that are low for workers.
 Management-worker relationships can be tense at times.
 The bank runs into trouble when government regulations are too restrictive.
Opportunities:
 Investment in emerging markets expands.
 The potential for automation presents a significant new avenue for exploration.
 United Commercial Bank is backed by the government in the event of a liquidity
crisis.
 The bank is providing training based on employee requests.
Threats:
 Recently formed private banks and those based in other countries.
 There is intense rivalry between commercial banks and other types of financial
institutions.
 Weak mechanisms for recovering loans are in place.
 The policies are not being followed correctly.

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4.2Financial Performance by trend analysis

Liquidity Ratio:

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The firm's ability to meet its short-term commitments when they come due is quantified by
the liquidity ratio.
a. Current Ratio:
One of the most often used financial ratios, the current ratio indicates a company's capacity to
pay its short-term debts. If a company's current ratio is high, that means it has plenty of cash
on hand. That idea is written as:
Current Ratio=Current Asset / Current Liabilities
Current Ratio
(in millions)
Year 2020 2019 2020 2021 2022

Current Asset 26471.09 29097.76 33938.18 43115.57 50173.49

Current 22133.63 24620.66 28657.59 36176.55 42117.00

Liabilities

Current Ratio 1.19 1.18 1.18 1.19 1.19

(Source: Annual Report of BCBL of 2020-2022)

1.2 Current Ratio

1.19 1.19 1.19

1.18 1.18 1.18

1.16

Graphical Presentation of Current Ratio.

© Daffodil International University

Interpretation:

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We all know that the higher a company's current ratio, which gauges the proportion of its
current assets to its current liabilities, the more liquid the business is. From 2020 to 2022,
BCBL's liquidity position fluctuates as depicted in this graph. BCBL's current ratio in 2020
was 1.19 tk. current assets to 1 tk. current liability, but in 2019 it has dropped to 1.18.
However, by 2021–2022, the ratio will have risen to 1.19.
b. Net Working Capital
Working capital refers to the portion of money invested that is used to run the firm. The term
"net working capital" refers to a company's surplus over its present debts. Although not
technically a ratio, net working capital is widely used to assess a company's liquidity. The
following is the formula used to determine it:
Net Working capital=Current Asset - Current Liabilities
Net Working Capital
(in millions)
Year 2020 2019 2020 2021 2022

Current Asset 26471.09 29097.76 33938.18 43115.57 50173.49

Current 22133.63 24620.66 28657.59 36176.55 42117.00

Liabilities

Net working 4337.46 4477.1 5280.59 6939.02 8056.49

capital

(Source: Annual Report of BCBL of 2020-2022)

Net Working Capital

9000
8000 8056.49
7000 6939.02
6000
5000 5280.59
4477.1
4000 4337.46
3000
2000
1000
0

Graphical Presentation of Net Working Capital.

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 © Daffodil International University

Interpretation:
The company's liquidity position can be measured by looking at its net working capital. The
BCBL's liquidity position is showing signs of improvement, which is a positive trend. The
BCBL has improved its liquidity position to Tk. 8056.49 in 2022 after having a net working
capital of Tk. 4337.46 core in 2020. This figure significantly grew to 5280.59 corers in 2022.
Activity Ratio
A measurement that determines how productive a bank is. Ratio. The efficiency ratio is not
computed in the same manner across all financial institutions. Assets management ratios,
often known as asset utilization ratios, provide insight into how well a company is putting its
assets to work to create sales.
a. Total Asset Turnover:
Total asset turnover ratio is a measure of how quickly a company is able to turn over the
money it owes its creditors.
Total Asset Turnover=Net Sales/Total Assets

Total Asset Turnover

(in millions)
Year 2020 2019 2020 2021 2022

Total Asset 26715.73 29366.28 34570.99 44088.56 51136.94

Net Sales 1161.56 1369.71 1874.21 2308.42 2201.65

Total Asset
Turnover (%) 0.043479 0.046642 0.054213 0.052359 0.043054

(Source: Annual Report of BCBL of 2020-2022)

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 Total Asset Turnover
0.06
0.05 0.05
0.05
0.05
0.04 0.04
0.04
0.03
0.02
0.01
0

Graphical Presentation of Total Asset Turnover.

© Daffodil International University

Interpretation:
Equity capital should always take precedence over total asset turnover as the primary focus of
an organization's attention. From this chart, we can see that the ratio of BCBL Total Asset
Turnover is growing from the year 2021 to the year 2022.In 2020, the ratio of total asset
turnover was 0.043479%; the next year, it declined to 0.052359%; but, in 2022, it increased
to 0.043054%.

b. Operating Expenses to Assets Ratio

The expenditure ratio measures how much of a fund's overall value is eaten up by overhead
costs like management and promotion. One percent of the fund's total assets every year is
allocated to cover expenses if the expense ratio is one percent. Quantified as:
Operating Expense to Assets (OEA) =Total operating Expenses/ Total Assets
Operating Expenses to Revenue
Year 2020 2019 2020 2021 2022

Total operating 14133.32 14008.82 13677.16 12977.48 14008.82

expenses

Total Asset 26715.73 29366.28 34570.99 44088.56 51136.94

Operating
Expense to 0.52 0.48 0.40 0.30 0.28
Assets (OEA)

(Source: Annual Report of BCBL of 2020-2022)

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 Graphical Presentation of Operating Expenses to Revenue
Interpretation:
We are aware that the efficiency of operations of the bank may be determined using this ratio
by calculating the proportion of the bank's total operating costs that is compared to the bank's
total operating income. The general rule is that a larger ratio indicates a lower level of
operating efficiency. The operating costs of BCBL are relatively low in 2020, but they are
expected to increase after that year. Therefore, it is possible to assert that the BCBL's
operational effectiveness is not in a good position in comparison to the years that have gone
before, which indicates that they are not in a good position to cut their operating costs.

Debt Ratio:
The debt ratio is a measurement of the degree of protection afforded to investors and creditors
with longer time horizons.

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a. Debt Ratio
The debt ratio is a measurement of the percentage of a company's total assets that are
provided by its creditors. Debt, which consists of a set commitment in the form of interest
and principal repayments, is another factor that can be taken into consideration when
determining the level of risk involved.

Debt Ratio= Total Liabilities / Total Assets

Debt Ratio
(in millions)
Year 2020 2019 2020 2021 2022

Total Asset 26715.73 29366.28 34570.99 44088.56 51136.94

Total Liabilities 25809.49 27980.24 32528.80 41091.82 49480.95

Debt Ratio (%) 96.61 95.28 94.09 93.20 96.76

(Source: Annual Report of BCBL of 2020-2022)

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 Debt Ratio
98

97
96.61 96.76
96
95.28
95

94 94.09

93 93.2

92

91

Graphical Presentation of Debt Ratio.

© Daffodil International University

Interpretation:
Equity capital is more important than loan capital for every business. From 2021 to 2022, the
BCBL debt ratio rises as displayed here.The debt-to-income ratio was 96.61% in 2020,
93.20% in 2021, and 96.76% in 2022.
Time Interest Earn Ratio:
Time interest earned ratio, also known as interest coverage ratio, is a metric used to assess a
company's liquidity relative to its interest payment obligations.

Time Interest Earned Ratio= Earnings before Interest and Taxes / Interest expenses.
Time Interest Earned Ratio.
Year 2020 2019 2020 2021 2022

Earnings before 12513.16 11142.02 11180.33 10650.94 11981.14

Interest and
Taxes

Interest expenses 34212.83 35984.27 33982.70 31331.30 27093.67

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 Time Interest 1.21 1.33 1.54 1.60 1.41
Earned Ratio

(Source: Annual Report of BCBL of 2020-2022)

Time Interest Earned Ratio

1.8
1.6 1.54 1.6
1.4 1.41
1.33
1.2 1.21
1
0.8
0.6
0.4
0.2
0

Graphical Presentation of Time Interest Earned Ratio.

© Daffodil International University

Interpretation:
The time interest earned ratio for BCBL is on the rise, with the exception of 2022. The time
interest earned ratio has improved from 1.21 to 1.41 for the company. This means that
BCBL's financial risk has lessened as a result of the higher margin of safety it now enjoys in
paying the contractual interest.
Profitability Ratio:
The profitability ratio assesses the success or failure of a business or department over a
specified time frame.
a. Cost to income ratio:
The ratio of operating costs to operating income is known as the "cost/income ratio." It
indicates the rate of inflation relative to income. It's a major KPI for measuring a bank's
productivity: The more efficient a bank, the smaller the ratio.
Cost to income ratio=Operating Cost/Operating.

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Cost to income ratio
(BDT in Millions)
Year 2020 2019 2020 2021 2022

Operating Cost 461.25 511.90 666.13 722.46 748.27

Operating Income 1161.56 1369.71 1874.21 2308.42 2201.65

Cost to income 0.40 0.37 0.36 0.31 0.34

ratio

(Source: Annual Report of BCBL of 2020-2022)

Cost to income ratio

0.45
0.4 0.4
0.35 0.37 0.36 0.34
0.3 0.31
0.25
0.2
0.15
0.1
0.05
0

Graphical Presentation of Cost to income ratio.

© Daffodil International University

Interpretation:
The cost-to-income ratio illustrates how effectively a company controls expenses and
generates revenue. The ratio of expenses to earnings dropped from 0.40 in 2020 to 0.31 in
2021. In 2022, however, it went up to 0.34 from 2021's 0.31. As common knowledge dictates,
a lower cost-to-income ratio indicates a more profitable business. That's why the bank ought
to lower its rates.
B.Net Profit Margin:
After deducting all costs, including taxes, from total income, the net profit margin is the
amount left over. The company benefits from the larger net profit margin. When discussing a
company's financial health, the net profit margin is often referenced.

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 Net Profit Margin=Net profit/Operating profit.
Net Profit Margin
(BDT in Millions)
Year 2020 2019 2020 2021 2022

Net Profit 318.72 300.43 491.16 421.45 1628.03

Operating Profit 7003.06 8578.12 11037.00 14722.32 14533.8

Net Profit Margin 4.55 3.50 4.45 2.86 11.20

(%)

(Source: Annual Report of BCBL of 2020-2022)

Net Profit Margin

12
11.2
10

6
4.55 4.45
4
3.5
2.86
2

Graphical Presentation of Net Profit Margin.

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Interpretation:
The efficiency with which a corporation turns its revenue into profit is measured by its net
profit margin. From 2020 to 2021, this chart shows the variation in Net profit Margin.But in
2022, the bank's net profit margin skyrocketed to 11.20 percent, an encouraging indicator.
c. Return on Asset (ROA):
Return on asset (ROA), often known as the firm's return on total assets, is a metric used to
assess how well the company is able to turn its resources into a profit. The best ratio is the
higher one.

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 Return on Asset (ROA) = Net Profit after Taxes / Total Assets.

Return on Asset (ROA)

(BDT in Millions)
Year 2020 2019 2020 2021 2022

Net Profit after 318.72 300.43 491.16 421.45 1628.03

Taxes

Total Assets 26715.73 29366.28 34570.99 44088.56 51136.94

Return on Asset 1.18 1.02 1.42 1.01 3.19

(%)

(Source: Annual Report of BCBL of 2020-2022)

ROA
3.5
3.19
3
2.5
2
1.5 1.42
1.18
1 1.02 1.01
0.5
0

Graphical Presentation of Return On Asset.

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Interpretation:
Except for the most recent year, the graph of BCBL's Return on Asset indicates a rising trend.
The rise in BCBL's ROA from 2020's 1.42% is visible in this chart. BCBL's return on assets,
however, increased by 3.19 percent in 2022 after a dip in 2021.This bodes well for the
financial institution.

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d. Return on Equity (ROE):
The Return on Equity (ROE) quantifies the return on the investment of the owners (including
preferred and common stockholders). In general, the higher the rate of return, more well off
the owners are.
Return on Equity (ROE) =Net Profit after Taxes / Stockholders Equity.
Below is a table displaying Bangladesh Commercial Bank Ltd's return on equity for the years
2020 and 2022.
Return on Equity (ROE)
(BDT in Millions)
Year 2020 2019 2020 2021 2022

Net Profit after 318.72 300.43 491.16 421.45 1628.03

Taxes

Stockholders’ 37116.20 39455.70 49547.44 49889.66 51363.33

Equity

ROE 10.70% 15.85% 18.34% 21.51% 16.98%

(Source: Annual Report of BCBL of 2020-2022)

The change of the ROE in the last five years (2020-2022) is shown in the graph below-

ROE Ratio
25.00%
21.51%
20.00%
18.34%
15.85% 16.98%
15.00%

10.00% 10.70%

5.00%

0.00%

Graphical Presentation of ROE of Bangladesh Commercial Bank Ltd from 2020-2022.

© Daffodil International University

Interpretation:

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From 2020 to 2021, this number shows an increase in BCBL's ROE.But in 2022, it will
collapse horribly. In 2021, it goes up, but in 2022, it drops drastically again, which is bad
news for BCBLs. Therefore, management should make an effort to boost equity return.
3.8.5 Market Measure Ratios
a. Earnings per Share
Both current and potential shareholders, as well as management, pay close attention to a
company's EPS. Earnings per share is the monetary amount of profit that was generated for
each outstanding share of common stock. Here's how to figure out your earnings per share:

Earnings per Share =Earnings Available for Common stock Holder/No of shares of
Common Stock Outstanding
EPS of BCBL
(BDT in Millions)
Year 2020 2019 2020 2021 2022

Earnings Available 193.92 206.14 258.87 260.66 268.36

for Common stock
Holder

No of shares of 191.40 191.40 191.40 191.40 191.40

Common Stock
Outstanding

Earnings per Share 0.99 0.92 0.73 0.73 0.71

(Source: Annual Report of BCBL of 2019-2022)

1.2
Earnings per Share
1 0.99
0.92
0.8 0.73 0.73 0.71
0.6
0.4
0.2
0

Graphical Presentation of EPS of BCBL

© Daffodil International University

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Interpretation:
Earnings per share (EPS) are the sum of a company's profits divided by the number of shares
of common stock outstanding. Investors pay close attention to earnings per share (EPS) since
it is a useful measure of a company's performance. According to the chart, BCBLs' earnings
per share will increase in 2020 compared to 2021. When earnings per share go down, so does
the bank's profit. The ideal year for the BCBL, however, was 2022. Earnings per share (EPS)
growth in 2020 is an encouraging sign for the business.
b. Price Earnings Ratio
The price-to-earnings (P/E) ratio is a popular metric used to get a feel for how much investors
value a company's per-share earnings. Investors' willingness to pay per dollar of a company's
earnings is measured by the P/E ratio. When the P/E ratio is high, investors are optimistic
about the company's prospects. Here's how you figure out a stock's price relative to its
earnings:
Price Earnings Ratio=Market Price per Share/Earnings per Share

Price Earnings Ratio of BCBL

(BDT in Millions)
Year 2020 2019 2020 2021 2022

Market Price per 149.97 -217.73 217.80 349.37 341.84

Share

Earnings per Share 0.99 0.92 0.73 0.73 0.71

Price Earnings 0.0066013

Ratio 2 -0.00423 0.003352 0.002089 0.002077

(Source: Annual Report of BCBL of 2019-2022)

Price Earnings Ratio

0.01
0.01
0
0 0
0
2014 2015 2016 2017 2018
0

-0.01

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 Graphical Presentation of Price Earnings Ratio of BCBL
© Daffodil International University

Interpretation:
The graph illustrates that BCBL's price earnings ratio was good in 2021, representing
0.002089%. The 2022 price-to-earnings ratio was reduced to 0.002077% in the previous year,
which is insufficient. To enhance the ratio, the BCBL must raise the market price per share
while decreasing earnings per share. This graph depicts the price earnings ratio growing from
FY 2020 to 2021 and then slightly dropping from 2021 to 2022.
Vertical/Common Size Analysis
Vertical/Common Size Analysis
Common size Balance sheet
Particulars
2022 2021

Property and Assets Cash: 1.05% 1.14%

Cash in hand Balance with Bangladesh bank & 5.71% 6.22%

agent bank

Balance with other banks and Financial Institution 2.22% 2.49%

Money at call and short notice 0.26% 1.28%

Investments 32.97% 21.19%

Loans and Advances 48.75% 59.73%

Fixed Assets 1.65% 1.85%

Other Assets Non-banking Assets 8.40% 7.20%

Total Property and Assets 100% 100%

Liabilities and shareholder’s equity Capital 1.47% 2.21%

Borrowing from other banks

Deposit and other Accounts 81.64% 80.16%

Other Liabilities 10.53% 14.19%

Total Liabilities 92.17% 94.35%

Capital/Shareholders Equity 6.33% 3.41%

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 Total liabilities and shareholders’ equity 100% 100%

© Daffodil International University

Interpretation:
The percentage markup of various assets and their financing methods can be compared using
the data from the aforementioned vertical analysis. Among the possible actions are expanding
or decreasing the portfolio's exposure to specific assets. The analyst may also want to keep an
eye on how the asset and liability totals have evolved over time. It has come to light that the
company's holdings of current assets have grown. The administration can investigate the
causes of this steadily rising asset holding. Despite the fact that both assets and liabilities are
growing, liabilities were slightly larger in proportion to assets, which could cause some ratios
to drop. Based on the data shown above, it is clear that BCBL is more heavily reliant on loan
funding than equity financing.

Common size Income Statement

Particulars Common size Income Statement

2022 2021

Total Ope rating Income 100% 100%

Less: Total Operating Expenditure 72% 51.48%

Profit Before Provision 28% 48.52%

Less: Provision 7.19% (124.31%)

Profit Before Tax 20.81% (75.79%)

Less: Provision for Tax 5.14% 11.10%

Net Profit After Tax 15.67% (86.89%)

Add: Retained Surplus Brought Forward 9.43% 0.03%

25.10% (86.86)

(Source: Annual Report-2022)

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150%

100%

50%

0%

-50%

-100%

-150%

Graphical Presentation of Vertical/Common Size Analysis

Interpretation:
Another approach to common size analysis is to compare numbers from the same P&L. All of
the P&L items are compared to operating income in a standard profit and loss statement. To
rephrase, "100%" indicates that all of the data on the statement are expressed as a percentage
of Total Operating Income.According to the data presented above, BCBL's after-tax net profit
grew in 2022 compared to its negative figure from 2021, while its net operating income was
greater in 2021. However, in 2022, they had to pay a higher tax rate. The fact that
2022BCBL's expenses are greater than average yet the percentage is lower is encouraging for
the financial institution.

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4.3 Vertical analysis

Vertical/Common Size Analysis
Common size Balance sheet
Particulars
2022 2021

Property and Assets Cash: 1.05% 1.14%

Cash in hand Balance with Bangladesh bank & agent 5.71% 6.22%
bank

Balance with other banks and Financial Institution 2.22% 2.49%

Money at call and short notice 0.26% 1.28%

Investments 32.97% 21.19%

Loans and Advances 48.75% 59.73%

Fixed Assets 1.65% 1.85%

Other Assets Non-banking Assets 8.40% 7.20%

Total Property and Assets 100% 100%

Liabilities and shareholder’s equity Capital 1.47% 2.21%

Borrowing from other banks

Deposit and other Accounts 81.64% 80.16%

Other Liabilities 10.53% 14.19%

Total Liabilities 92.17% 94.35%

Capital/Shareholders Equity 6.33% 3.41%

Total liabilities and shareholders’ equity 100% 100%

(Source: Annual Report-2022)

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Interpretation:
The percentage markup of various assets and their financing methods can be compared using
the data from the aforementioned vertical analysis. Among the possible actions are expanding
or decreasing the portfolio's exposure to specific assets. The analyst may also want to keep an
eye on how the asset and liability totals have evolved over time. It has come to light that the
company's holdings of current assets have grown. The administration can investigate the
causes of this steadily rising asset holding. Despite the fact that both assets and liabilities are
growing, liabilities were slightly larger in proportion to assets, which could cause some ratios
to drop. Based on the data shown above, it is clear that BCBL is more heavily reliant on loan
funding than equity financing.
Common size Income Statement
Particulars Common size Income Statement
2022 2021
Total Ope rating Income 100% 100%
Less: Total Operating Expenditure 72% 51.48%
Profit Before Provision 28% 48.52%
Less: Provision 7.19% (124.31%)
Profit Before Tax 20.81% (75.79%)
Less: Provision for Tax 5.14% 11.10%
Net Profit After Tax 15.67% (86.89%)
Add: Retained Surplus Brought Forward 9.43% 0.03%
25.10% (86.86)

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(Source: Annual Report-2022)

Add: Retained Surplus Brought Forward

Net Profit After Tax

Less: Provision for Tax

Profit Before Tax

Less: Provision

Profit Before Provision

Less: Total Operating Expenditure

Total Ope rating Income

-150% -100% -50% 0% 50% 100% 150%

Graphical Presentation of Vertical/Common Size Analysis

Interpretation:
Another approach to common size analysis is to compare numbers from the same P&L. All of
the P&L items are compared to operating income in a standard profit and loss statement. To
rephrase, "100%" indicates that all of the data on the statement is expressed as a percentage
of Total Operating Income.According to the data presented above, BCBL's after-tax net profit
grew in 2022 compared to its negative figure from 2021, while its net operating income was
greater in 2021. However, in 2022, they had to pay a higher tax rate. A positive sign for
BCBL is the somewhat lower percentage of expenses compared to revenue in the year 2022.

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4.4 Horizontal analysis

An annual or multi-year comparison is made by placing a series of financial statements side
by side, such as a balance sheet, income statement, or statement of cash flow, and analyzing
the changes that have occurred in each section over time.

Percentage change= (recent year-previous year)/previous year

Trend Analysis of Bangladesh Commercial Bank Ltd.
Items(Figure in million) 2022 % 2021 %

Paid up Capital 19140.00 .74% 11000 0.35%

Shareholders' Equity 37116.60 1.12 17476.66 (.48%)

Total assets 586082.98 .14% 511129.41 .14%

Total deposits 478,535.57 .16% 409,767.01 .13%

Total loans &Advances 285,747.65 (.06%) 305,339.57 0.18%

Total Investment 193269.67 .78% 108342.04 .16%

Operating Income 20859.03 (.05%) 22021.47 (.04%)

Operating expenditure 8731.92 .16% 7482.67 .03%

Profit Before Provision 12127.11 (.16%) 14533.8 (.02%)

Profit Before Tax 10625.33 (1.82%) (12834.9) (2.47%)

Total Provision 1501.78 (.94%) 27368.70 3.43%

Net Profit After Tax 9551.41 (1.62%) (15280.33) (4.62%)

(Source: Annual Report-2022)

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Net Profit After Tax

Total Provision
Profit Before Tax
Profit Before Provision
Operating expenditure
Operating Income
Total Investment
Total loans &Advances
Total deposits
Total assets
Shareholders' Equity
Paid up Capital

-200000 0 200000 400000 600000 800000

Graphical Presentation of Trend Analysis of Bangladesh Commercial Bank Ltd.

Interpretation:
Statements from different years might shed light on the nature, velocity, and scope of a trend.
To arrive at such percentages, you must first pick a base year and give each item in that year's
statement a value out of 100.Index numbers or trend ratios are the resulting numbers.
According to these projections, the BCBL will have a much stronger season in 2022. In 2022,
both their capital and stockholders' equity were higher than in 2021 levels.

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Chapter-Five
Findings
5.1 Findings of Operational Performance
We all know that a company's liquidity may be assessed by looking at the ratio of its current
assets to its current liabilities; the greater the ratio, the more liquid the company is. From
2020 to 2022, BCBL's liquidity position fluctuates as depicted in this graph. The current ratio
for BCBL in 2020 was 1.19 tk. current assets to 1 tk. current liabilities, while in 2019 it has
dropped to 1.18. However, the ratio will rise to 1.19 in 2021 and 2022.

The company's liquidity is represented by its net working capital. The BCBL's liquidity
position is improving. The BCBL improved its liquidity position from Tk. 4337.46 core in
2020 to Tk. 5280.59 core in 2021 and Tk. 8056.49 core in 2022 in 2022.

Equity capital, as opposed to Total Asset Turnover, is where a company's focus should be.
From 2020 to 2021, the BCBLTotal Asset Turnover ratio improves, as displayed here.Total
asset turnover ratio in 2020 was 0.043479%, then in 2021 it dropped to 0.052359%, and by
2022 it had risen to 0.043054%.

We know that this ratio, which measures the proportion of a bank's total operating costs to its
total operating income, provides insight into the efficiency with which the bank operates.
BCBL has modest operating costs in 2020, but those costs will rise beyond that year. The
BCBL is not in a good position to cut its operational costs, hence its operating efficiency is
not good compared to previous years.

Equity capital is more important than loan capital for every business. From 2021 to 2022, the
BCBL debt ratio rises as displayed here.The debt-to-income ratio was 96.61% in 2020,
93.20% in 2021, and 96.76% in 2022.

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The time interest earned ratio for BCBL is on the rise, with the exception of 2022. The time
interest earned ratio has improved from 1.21 to 1.41 for the company. This means BCBL's
financial risk has lessened as a result of its greater margin of safety in paying the contractual
interest.

SWOT Analysis: The business bank offers the largest retaining money benefit and serves
close to a thousand corporate clients. Human resources professionals who are competent,
persistent, and committed. Gains benefit from a bank card. Inadequately low storage rates and
fewest adjustments. Issues with ATM breakdown and card delivery Disjointed
communication between headquarters and regional offices. By lowering the base adjustments
qualifying for premium and providing more attractive lending prices, the bank may win back
many of its present business banking customers while attracting new ones. Currently, Trust
bank, EBL, and BRAC Corp pose significant threats to DBBL in the retail and corporate
banking sectors, respectively. The upstarts in the private banking sector are not the only ones
coming out with niche products.

5.2 Financial Performance

 Trend Analysis: Statements from different years might shed light on the nature,
velocity, and scope of a trend. To arrive at such percentages, you must first pick a
base year and give each item in that year's statement a value out of 100. Index
numbers or trend ratios are the resulting numbers. According to these projections, the
BCBL will have a much stronger season in 2022. In 2022, both their capital and
stockholders' equity were higher than in 2021 levels.
 Ratio: Another approach to common size analysis is to compare numbers from the
same P&L. All of the P&L items are compared to operating income in a standard
profit and loss statement. To rephrase, "100%" indicates that all of the data on the
statement are expressed as a percentage of Total Operating Income.According to the
data presented above, BCBL's after-tax net profit grew in 2022 compared to its
negative figure from 2021, while its net operating income was greater in 2021.
However, in 2022, they had to pay a higher tax rate. The fact that 2022BCBL's
expenses are greater than average yet the percentage is lower is encouraging for the
financial institution.

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 Vertical: The percentage markup of various assets and their financing methods can be
compared using the data from the aforementioned vertical analysis. Among the
possible actions are expanding or decreasing the portfolio's exposure to specific
assets. The analyst may also want to keep an eye on how the asset and liability totals
have evolved over time. It has come to light that the company's holdings of current
assets have grown. The administration can investigate the causes of this steadily rising
asset holding. Despite the fact that both assets and liabilities are growing, liabilities
were slightly larger in proportion to assets, which could cause some ratios to drop.
Based on the data presented above, it is clear that BCBL has a larger amount of debt
financing than equity financing, since both total liabilities and stockholders' equity
have increased.
 Horizontal: Statements from different years might shed light on the nature, velocity,
and scope of a trend. To arrive at such percentages, you must first pick a base year
and give each item in that year's statement a value out of 100. Index numbers or trend
ratios are the resulting numbers. According to these projections, the BCBL will have a
much stronger season in 2022. In 2022, both their capital and stockholders' equity
were higher than in 2021 levels.

5.3Problems from Critical Observation

BCBL was founded on the principle of fostering superior connections with their clientele.
During my internship and up to the time this report was written, I observed some banking
practices that I believe need to be modified.
 The current ratio shows a decline in BCBL's liquidity from 2019 to 2020. In 2022,
however, that number rose to 1.19.
 The growth in BCBL's net working capital bodes well for the bank's capacity to
satisfy its short-term obligations.
 With the exception of 2022, the proportion of time interest earned by BCBL has
increased. This means the company's financial risk will increase in 2022 as it will
have less room to maneuver when it comes to paying the contractual interest rate.
 By 2021, BCBL's cost-to-income ratio has decreased. However, by 2022, the ratio of
expenses to revenues had risen to 34%.

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 It is common knowledge that a company benefits from increased net profit. The net
profit margin and return on investment for BCBL have been growing annually. In
2022, NPM jumped from 2.86% to 11.20%.
 In 2021, BCBL's ROI was 1.42 percent, up from 1.42 percent in 2020. BCBL's return
on assets, however, increased by 3.19 percent in 2022 after a dip in 2021.This bodes
well for the financial institution.
 When compared to competitors, BCBL has a more favorable cost-to-income ratio. In
2022, however, that number grew to 34% from 31%.
 BCBL's ROA has been greater than normal during the past few years, but its ROE has
been lower than average, with the exception of 2021. For the company's future, this
bodes poorly.

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 Chapter- Six
Recommendations& Conclusion
5.1 Recommendations
It's normal for there to be issues in any group. In order to run a business, issues are a must.
However, corrective action is required. The aforementioned issues can be addressed by
implementing the following recommendations:

 Bangladesh Commercial Bank Ltd's current ratio is sufficient to satisfy its immediate
obligations. Maintaining this ratio is important for BCBL, but it should exercise
caution when comparing the company's current assets to its current liabilities.
 A higher cost-to-income ratio in 2022 means that the bank needs to cut costs
elsewhere.
 Optimal debt levels and capitalization can be attained if BCBL reevaluates its current
capital structure.
 In 2022, the proportion of interest earned over time will decline. As a result, BCBL
needs to increase interest earnings to keep the upward trend going.
 Although the company's net profit margin improved in 2022, it might stand to grow its
profits more by attracting new customers and cutting costs.

BCBL's Cost to Income Ratio is favorable when compared to the norm of its market.
Comparatively, BCBL's cost to income ratio is expected to rise in 2022, while the industry
average is falling. If BCBL wants to see a rise in its bottom line, it needs to cut down on its
funding and operational costs while expanding its service area.

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6.2Conclusion

Bangladesh's economy is among the world's least developed. The country's undeveloped
banking sector could be a contributing factor. The government and various international
organizations have both recognized that an insufficient banking system slows down economic
growth. That's why they advocate so strongly for changing the banking system. Since 1990,
the government of Bangladesh has undertaken extensive financial sector reform measures
with the goal of increasing transparency in the financial and banking sectors. In conclusion, it
is clear that BCBL needs to strengthen its banking infrastructure in order to win over clients
and investors. Improve your customer relations by treating your customers like an asset and
providing them with the service they deserve.

Bangladesh Commercial Bank Ltd. (BCBL), a frontrunner in the banking industry despite the
country's unstable economy. The government's strategy for long-term financial reform and
modernisation included transforming the bank into a private limited corporation. BCBL aids
in the mobilization of resources to maintain strength in vital operational regions. The treasury
dealing is being solidified to help facilitate transactions needing advanced products and
services for larger societal and corporate clients, ensuring BCBL's continued dominance in
the foreign exchange and money market and boosting revenue through mindful pricing and
assessment of both risk and return on investment. Despite its widespread customer base and
high level of trust, the company nonetheless struggles to make a profit due to a number of
issues. Authority is rigid, and decisions are slow to come about.

From a purely pragmatic standpoint, I can state without reservation that I have thoroughly
enjoyed my internship here at the bank. In addition, I can't get my M.B.A. without
completing this internship. Clearly, a program has helped me advance in my job goals. I've
put in a lot of effort to make sure that the research report has all the right details.

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Reference
Books:
1. Gitman J Lawrence, Principle of Managerial Finance, 10th edition, Pearson Education
Pte. Ltd, Singapore, 2003.
2. Heffernan, S. Modern Banking: Theory nd Practices, 2nd Edition. Hoboken, John
Wihey and Sons Inc, USA, (2004)
3. Jerry J. Weygandt, Pual D. Kimnaet, Dorald E. Kieso, Accorting Principles” 9th
edition, John Wiley and Sons Inc, United States of America, (2010).
4. Sobhan M.S. Financial Management, 2nd Edition, Prominence Publication Dhaka,
(2021)

Websites:
1. Cash Reserve Ratio, (December 1, 2022), Retrieved from the
https://businessjargons.com/cas-reserve-ratio.html
2. Debt/Equity Ratio, (December 1, 2022), Retrieved from the
https://www.investopedia.com/terms/d/debtequityratio.asp
3. Financial performance (November 28, 2022), Retrieved from the
http://www.investopedia.com/terms/financialperformance.asp
4. History of Bangladesh Commercial Bank Ltd (November 20, 2022), Retrieved from
the Bangladesh Commercial Bank Ltd Website: https://www.BCBL.com.bd/
5. Performance analysis, (November 27, 2022), Retrieved from the
https://www.assignmentpoint.com/business/finance/performanceanalysis-on-united-
commercial-bank-limited.html
Annual Report and Others
1. Annual Reports of Bangladesh Bank, 2013.
2. Annual reports of Bangladesh Commercial Bank Ltd (2020-2022).
3. Circulars issued by the Head Office of the Bangladesh Commercial Bank Ltd.
4. Different types of Brochures of BCBL
5. Reading Materials on Theory & Practice of Banking (B- 101)’, Bangladesh Institute
of Bank Management (BIBM)

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