Shanto-Mariam University of Creative Technology

Internship Report
On

Financial Performance Analysis of NRB Commercial Bank

Limited

An Internship Report Presented to the Faculty of Management & General Studies in partial
Fulfillment of the Requirements for the Degree of Bachelor/Masters of Business
Administration

Submitted To:
The Department of Business Administration

Supervised By
Nasrin Jahan
Associate professor
Department of Business Administration
Shanto-Mariam University Of Creative Technology

Submitted By
Rakibul Islam Rahat
ID: 193401008
53rdBatch, BBA (Finance)

Faculty of Business Administration

Date of submission: 2nd January 2024

 Internship report on
Financial Performance Analysis of NRB Commercial Bank
Limited
 Letter of Endorsement

The Internship Report entitled Financial Performance Analysis of NRB Commercial Bank
Limited
has been submitted to the supervisor/ Head, in partial fulfillment of the requirements for the
degree of Bachelor/ Masters of Business Administration, by (Rakibul Islam Rahat),
ID:193401008, Major in Finance. The report has been accepted and may be presented to
supervisor for evaluation.

Verification of Internship Completion Letter

Verified Not Verified
If Verified:
MD. Ranju Mia
Junior Officer & GB Incharge
Nrbc Bank,Zirani Bazar Branch
Phone No; 01796-474691
Email: [email protected]

………………….

Nasrin Jahan

Associate professor

Department of Business Administration

Shanto-Mariam University Of Creative Technology

 Letter of Transmittal

Date:2nd January 2024

To,
Nasrin Jahan

Associate professor
Department of Business Administration
Shanto-Mariam University Of Creative Technology

Subject: Submission of Internship Report on“Financial Performance Analysis of NRB

Commercial Bank Limited”

Sir,
With due regard that I, amRakibul Islam Rahat,ID: 193401008 might want to inform you that
here is the give a report of “Financial Performance Analysis of NRB Commercial Bank
Limited” that was assigned to me submit under the internship program. It was a great
pleasure for me to do the assigned report. I have conducted my internship program atNRB
Commercial Bank Limited, Zirani Bazar Branch., with your kind supervision. I trust that the
learning and experience, I gathered during the internship time frame, will be useful in my
future professional life.
I made each undertaken for preparing this report precise, unmistakable and comprehensive
and endeavored my measurement best to aggregate applicable and keen data inside the
arranged time and confined resources. Any shortcoming in this report is completely my
blame.
I have invested each push to delineate the administration quality, functions performed by the
NRB Commercial Bank Limited. I will be grateful to you in the event that you kindly accept
this report.
Thank You.

Sincerely Yours,

Rakibul Islam Rahat

ID: 19340100853rdBatch, BBA (Finance)
 Letter of Authorization

This is to ratify that Name: Rakibul Islam Rahat. ID: 193401008,a student of the
Department of Business Administration of Shanto-Mariam University Of Creative
Technology has completed his internship report titled “Financial performance Analysis of
NRB Commercial Bank Limited” under my supervision and direction.

His internship placement was at the Office of NRB Commercial Bank Limited. in Zirani
Bazar Branch, Ashulia, Savar, Dhaka. I am pleased to state that he has gone through all the
necessary and required steps to accomplish the report and the report contains all the data,
information, analysis and findings from authentic sources. As a result, the report seems to
have completed on a successful note.
I wish him every success in life.

………………………………
Signature of the Supervisor

Nasrin Jahan

Associate professor

Department of Business Administration

Shanto-Mariam University Of Creative Technology

 Student’s Declaration

I,am Rakibul Islam Rahat ID: 193401008, announced here that the following internship
report titled "Financial Analysis of NRB Commercial Bank Limited" has been prepared by me
only after I finished my internship at NRB Commercial Bank Limited in Zirani Bazar
branch. , Ashulia, Savar, Dhaka. Under the supervision of Nasrin Jahan Associate professor
Department of Business Administration, Faculty of Business and Entrepreneurship.

I ensure that the report has been prepared in consideration of the fulfillment of my academic
requirement and not for any other intention although the concerned parties may find it useful for
the improvement of Professional activates.

……………………….
Rakibul Islam Rahat

ID: 193401008

53rdBatch, BBA (Finance)

Faculty of Business Administration

 Acknowledgments

By the beauty of Allah Almighty, I have effectively finished the undertaking report on
"Budgetary Analysis of NRB Commercial Bank Limited"

In the instant, I would like to express my sincere gratitude to my guide Nasrin Jahan,
associate Professor for his interest, inspiration and huge instruction for him, went ahead with
the help of my tests and related activities. His guidance helped me in every long stretch of
writing and designing activities. Can’t imagine having a higher consultant and housetrainer
for my report.

In my consultation, I forgive NRB Commercial Bank Limited for their drive direction and
nonstop monitoring because they feel committed to trying and forgiving them for the data
they need. I would like to thank NRB Commercial Bank Ltd for their interest, for their
generous support and assistance that has helped me achieve this task. Also, I would like to
express my extraordinary thanks and gratitude to the business people for giving me this
national thought and time.

My thanks and gratitude likewise appears to me as my colleague for doing the job and
passing it on to people who have stuck with me in their skills.

I have tried. Whatever the case, it would not have been conceivable without considering and
supporting endless individuals and cooperation. I would like to extend my sincere
appreciation to all of them.
 Executive Summary

In the new centralized business, the private banking sector is becoming increasingly
aggressive in Bangladesh. In this section, the most commonly used budget reports are balance
sheets and profit-lockset accounts where the equation shows the financial condition and the
advantages and disadvantages of a bank.

Ratio analysis works with this announcement. An analysis of the proportion of the most
advanced patterns of evaluating a bank's presentation over the years or with different
companies in an industry. My report should read the NRBC budget summaries when
examining how to make huge comments about changing financial conditions. Analyzing and
detailing the summaries of these budgets through ratio analysis has now become an important
method for evaluators to evaluate the effectiveness of adjudicators, finance experts, board
executives, and bankers to consistently settle on significant choices based on these ratios. Any
bank monitoring group, financial expert and open company are constantly concerned about
liquidity ratios and the efficiency ratio of a bank.

As part of my BBA program, I have spent 12 weeks in NRB Commercial Bank Limited,
Zirani Bazar Branch, Ashulia, Savar, general banking learning practice, clearing check,
BRTA and money counter, department practice. Using it in the record at different times, I
investigated the potential for money from NRB Commercial Bank Limited to discover the
ratios. In the context of setting up this report, I discovered that breaking the budget
summaries through proportion overcomes the mistakes of the past and fixes on future choices
and methods. Therefore, it is important for each organization to give a budget overview of the
size of the association and examine it in quantities.
 Contents
Chapters particulars Page
No
1.1 Introduction 2

Chapter-1 1.2 Introduction of the Background of the study 3

1.3 study Scope of the study 3
1.4 Objectives of the Study 3
1.5 Methodology of the Study 4
1.6 Limitations of study 5
2.1 Introduction of NRB 7
Commercial Bank Limited
2.2 History of NRB Commercial 8
Bank Limited
2.3 Mission 8
2.4 Overview of NRB Vision 9
2.5 Commercial Strategic Objectives 9
Bank Limited
2.6 Goal of NRB Commercial 9
Chapter-2
Bank
2.7 Profile of NRB Commercial 10
Bank ltd
2.8 Overview of Bank 10
2.9 List of the NRB Commercial 11
Bank ltd branches
2.10 Dealings of NRBCB 12
2.11 Product &Services of 12
NRBCB
2.12 General Banking Department 15
3.1 Introduction 21
3.2 Providing information as 21
Front Desk officer
3.3 Process of Opening of current & 22
Savings A/C
3.4 My Internship Account Opening Form Fill up 25
Experience at
Chapter-3 3.5 NRBC Bank Account Closure 26
3.11 Card Delivery 27
3.12 Pin Delivery 27
3.8 Job Description 29
 3.15 Lessons learned & challenges 28
3.16 Challenges Faced 30
3.17 Learning Outcome 30
4.1 Theoretical Financial ratio 32
Chapter-4 4.2 Overview of Types of Financial ratios 32
Financial Ratio
Chapter-5 Financial Ratio
5.1 Analysis of Financial performance measure 35-40
NRBCB
Chapter-6 6.1 Findings of the Findings 42
6.3 study SWOT Analysis of NRBCB 42
Chapter-7 7.1 Recommendation Recommendation 48
7.2 & Conclusion 49
Conclusion
 Chapter -1
Introduction

54
1.1 Introduction
Now-a day‟s banking sector is modernizing and expanding its hand in different
financial events every day. At the same time the banking process is becoming faster,
easier and is becoming wider. In order to survive in the competitive field of the
banking sector all organizations are looking for better service opportunities to provide
their fellow clients. So it has become essential for every person to have some idea on
the bank and banking procedure. Internship program which can also be called work
attachment program is essential for completing BBA program because it helps one
student to acquaint with the real life situation. As bank is one of the most important
financial intermediaries; so I have selected „NRB
Commercial Bank Limited, Mograpara Branch‟ which is one of the most newly
created leading banks in the banking area of Bangladesh.

This internship report contains the passing study on “The NRB Commercial Bank
Ltd”. The report is distributed in many parts according to the constructions of
supervisor of report.

The NRB Commercial Bank manages its business and operation vertically from the
head office through four distinct business divisions namely

• Corporate & investment Banking

• Retail Banking (including Card)
• SME Banking &
• Treasury & market Risk

Under a real time online banking platform, these four business divisions are supported
at the back by a green service delivery or operations setup and also a smart IT
Backbone. Such centralized business segment based business & operating model
ensure specialized treatment and service to the banks different customer segments.

55
1.2 Background of the study
After completion of all the required courses of BBA program under Hamdard
University Bangladesh, it is an obligatory part to get involved in a practical and
professional environment. So I had joined in the NRB Commercial Bank Ltd,
Mograpara Branch, for three months to complete the BBA program. This branch
performs the entire banking activities including General Banking. As a result, one can
easily gain knowledge of both simple and complicated banking operations from the
activities of this branch. So I choose NRB Commercial Bank Ltd, Mograpara Branch,
Sonargaon, Narayanganj as sampling area to prepare this internship report. This report
is the output of my practical experience which I gathered during internship.

1.3 Scope of the study

The main focus of the study is to examine “Ratio Analysis” of NRB Commercial
Bank. In this report it has been tried to cover overview of NRBCB‟ objectives,
functions, management, business policy and other associated things related with the
general banking activity. Moreover some possible recommendations have been given
to widen the performance of NRBCB.

1.4 Objectives of the Study

1.4.1 Primary Objective:

• To analyze the financial performance of NRB Commercial Bank Limited using

key
financial ratios.
1.4.2 Secondary Objectives:

• To know the general banking activities of NRB Commercial Bank.

• To recognize the various product and services of NRB Commercial Bank.
• To gather the practical experience base on the theoretical knowledge.
• To suggest recommendations on the basis of findings.

56
1.5 Methodology of the Study
1.5.1 Data Collection
For conducting the study I have used both primary data and secondary. The sources are
given below:
Primary data sources:
Primary data have been collected through observation and interview.

 Face to face conversation with the bank officials

 Face to face conversation with the clients Practical desk work

Secondary data sources:

The secondary data have collected from the following sources:

 Multifarious published documents of NRB Commercial Bank such as

annual reports & prospectus.
 Official website of NRB Commercial Bank

1.5.2 Data Analysis

To attain the objectives of this study collected data have been plotted in
the table and analyzed by using ratios, and percentile. Trends of the
collected data of the values of the variables have been shown in this
study.

57
1.6 Limitations of study
From the intention to make the report realistic and properly accepted this report has
been conducted. However, many problems appeared in the way of conducting the
study. All the given information is not fully complete. Some of the information is
company secret and important and only provided to some persons to know about it.
However, I try my best to settle and pass up the Report before the due date and hoping
it was satisfied. The study considers following limitations:

 Lack of in-depth knowledge and analytical ability for writing such report.
 Another limitation of this study is bank‟s policy of not disclosing some data
and
Information for obvious reason, which could be very much useful.

 In case of the secondary data collection, there were very few secondary
information
was available. There were few supporting books, report, journals etc.

 Lack of experience to analyze data.

 As the duration of the internship program is three months and the process of
this program is job rotation, so I didn‟t get sufficient time in each department to
understand their activities.

 Gathering information about the banking performance was very difficult. That
is why I have to follow more on secondary data like annual report, web sites
and some of banking documents.

 Banking sector is a very vast sector where I have a little knowledge about it
which
limits my report.

58
 Chapter-2
Overview of NRB Commercial Bank Limited

59
2.1 Introduction of NRB Commercial Bank Limited
The commercial banking system dominates Bangladesh's financial sector. Bangladesh
Bank, the central bank and head regulatory body for the country's monetary and
financial system, was established in Dhaka as a body corporate vides the Bangladesh
Bank Order, 1972 with effect from 16th December, 1971. The banking system is
composed of four state-owned commercial banks, five specialized banks 61private
commercial banks, one land development bank and nine foreign commercial banks.
The Nobel Prize–winning Grameen Bank is a specialized micro-finance institution,
which revolutionized the concept of micro-credit and contributed greatly towards
poverty reduction and the empowerment of women in Bangladesh. NRB Commercial
Bank is one of the private commercial banks which is monitored and controlled by
Bangladesh Bank (BB). The central bank has approved three new commercial banks
sponsored by non-resident Bangladeshis (NRBs) on the condition that those would
contribute to boosting the inflow of foreign exchange.

Mr. Engr. Farasath Ali is the founding Chairman of NRB Commercial bank having a
long professional experience. He heads SNA Knitting Mills Inc. in the USA, a
knitwear unit. President and other Directors are also well reputed in their own sectors
of business. These nice personalities have well defined mission and vision. Their
mission is not to restrict NRB Commercial Bank Limited to a particular group of
people but to bring the huge unbanked people under banking. Their vision is to make
NRB Commercial Bank Limited truly providing world class services throughout the
world.

2.2 History of NRB Commercial Bank Limited

NRB Commercial Bank Limited (NRBC Bank) having its Registered Office at 114
Motjheel Commercial Area, Dhaka-1000, Bangladesh, was incorporated on February
20, 2013 as a Public Limited Company under the Companies Act, 1994 and also is
governed by the Bank Company Act 1991 with Authorized Capital of Tk.10000
million and having strong capital base of Tk.444.60 core (Paid up Capital) by
converting the hard earned foreign currency of fifty three qualified NRBs from
business persons, community leaders, scientists, educationists, living in across the
globe which includes USA, Canada, UK, Russia, Italy, Germany, UAE and Kuwait.

60
NRBC Bank started its journey from 2 April 2013 after getting permission dated 10
March 2013 as a scheduled Bank. The Bank commenced its business on April 18,
2013. That very first day the first branch of the Bank was inaugurated at Motijheel
Commercial Area. Presently NRBC Bank has 51 Branches in rural and urban area of
Bangladesh and, recently, formed a subsidiary company NRBC Bank Securities
Limited.

NRBC Bank gets direction in its corporate governance practices mainly from two
regulatory bodies:

 Bangladesh Bank (Central Bank of Bangladesh) and

 Bangladesh Securities and Exchange Commission (BSEC) as an incorporated

organization in Bangladesh

2.3 Mission
 Build confidence among the NRBs for investment.
 Provide fast, accurate and adequate customer service upholding
business ethics and transparency.
 Strengthen inflow of remittance.
 Create value for communities, societies and economies in which we
operate by ensuring growth and sustainability.
 Matching technology with the help of well educated professionals and
experienced sponsors of the Bank.
 Create dignified working environment for Employees.
2.4 Vision
 To become a peerless bank in terms of providing e!icient & innovative banking
services, safeguarding depositor’s interest, fulfilling shareholders desire, supporting
economic growth of the country with particular attention to channelize regular inflow
of foreign remittance of Bangladeshi expatriates working abroad and also the inflow
of idle and less remunerative fund held with wealthy NRBs.
 To become an entrusted partner of the people.

61
2.5 Strategic Objectives
 Create opportunities for NRBs to invest their earnings, utilize their
professional expertise in the economic development of Bangladesh.

 Channelize idle and less remunerative fund of NRB.

 Attract FDI of NRBs through diverse products and projects.

 Balanced and sustainable growth.

 Maximization of shareholders‟ wealth.

 Accomplish the long cherished desire and dream of NRBs to have a

bank of their „own‟.

 Excellence of manpower efficiency through attractive compensation

package,
promoting staff Moral through training, development and career plan.

 To invest in the thrust sector for the overall economic development.

 Technology transfer with the help of the well educated professionals

and experienced sponsors of the Bank to have a green banking practice.

 Ensure best Corporate Social Responsibility (CSR) practice.

 Promise to make the world of NRBC Bank a little bigger, every day.

2.6 Goal of NRB Commercial Bank

To become exceptional brand in the financial sector by offering service excellence and
creating value for everybody encompassing customers, shareholders, partners, society
and economy through transparency, technology, innovation & integrity.

62
2.7 CORPORATEPROFILE

Name of the Company NRB Commercial Bank Limited

Red Crescent Jashim Trade Centre
114 Motijheel C/A, Dhaka-1000, Bangladesh
Phone : 880-02-9573422-30
Registered Office Fax: 880-02-9573421
Swift code: NRBB BDDH
Email: [email protected]

Chairman Mr. S M Parvez Tamal

Vice Chairman Mr. Rafikul Islam Mia Arzoo

Directors Mr. Mohammed Adnan Imam, FCCA

Mr. Abu Mohammad Saidur Rahman
Mr. Mohammed Oliur Rahman
Mr. Loquit Ullah
Mr. Mohammed Nazim
Mr. AKM Mostafizur Rahman
Independent Directors Air Chief Marshal Abu Esrar, BBP, ndc (Retd.)
Dr. Khan Mohammad Abdul Mannan
Dr. Raad Mozib Lalon

Managing Director Mr. Golam Awlia

63
 Capital Value of Internet Banking Transactions
Tk. 19,221.27 Million TK. 31,944.65 Million
Paid-up Capital Network
TK 7,929.66 Million [ 8,286.49 Million If Stock • Number of Branches: 103
Dividend @4.5% is approved by Shareholders in
• Number of Sub-branches: 224
10th AGM]
• Partnership Sub-branches: 131
Net Asset Value
Tk. 12,935.32 Million (Solo Basis) • Land Registration Sub-branches: 570

Net Asset Value per Share • Foreign remittance Agencies: 2

• Foreign remittance Sub-agencies:

Tk. 16.31 Per Share (Solo Basis) Total ATM: 81
Net Operating Cash flow per share Total RMA: 182 Fls across the globe
Tk. 9.38 Per Share (Solo Basis) IPO Approval Date by SEC
Total Assets November 18, 2020
Tk. 200,356.06 Million (Solo Basis) Date of publication of Prospectus

Loans & advances January 06, 2021

Tk. 136,174.05 Million Date of first share trading in stock market
Reserves March 22, 2021
Tk. 3,108.26 Million Share Prise as of
Employees December 31, 2022
No. of Official : 3804
Tk. 17.60
No. of Sta! : 60
Share Price Range over the year
Return on Investment/Equity Tk. 17.60 - Tk. 29.10
14.06% (Solo Basis) Earnings per Share
Return on Asset (ROA) Tk. 2.19 (Solo Basis)
0.98% (Solo Basis) Total Nostro Account : 24
Capital to Risk Weighted Assets Ratio Number of Internet Banking Transactions:
12.44% (Solo Basis) 1,418,474

64
2.8 Overview of Bank
The bank is a financial intermediary and financier
who generates funds through the loan to the
borrower, thereby generating similar deposits on the
bank's balance sheet. It is a company authorized by
the government to accept deposits, pay interest,
provide clear checks, provide loans, act as
intermediaries in financial transactions and provide
other financial services to its customers, accepting
and protecting banking owned by other persons and
entities and then Defined as a business activity to
provide this money outlet for-profit Each can be.
However, over time the activities under the banking business have become more widespread
and now various other services are also offered by banks. Banking services nowadays include
debit and credit card payments, valuables, lockers, ATM services and secure transfer of funds
online through countries

2.10 Dealings of NRBCB

General Banking Department of NRBCB:


General Banking Department is considered as the direct service center. The clients and
customer build their intuition whether they are going for further dealings with the bank
or not on the basis of the service in the department, Moreover this department is the
one that gives the first impression about the bank to the clients. So, GB is one of
necessary parts of conducting a bank.


Foreign Trade Department of NRBCB:
Foreign exchange is the conversion of one country's currency into that of another. This
department has 2 section including “Export” and “Import”. Both of sections mainly
work for
L/C or Letter Of credit. In addition it works for L/C opening procedure, types of L/C,
L/C payments, required documents, documents checking, issuing IDBP and IDBC.


Credit and Loan Department of NRBCB:
This department works with two category loan. One is personal loan and another is
corporate loan. Some necessary documents are mandatory to give here for loan

65
proposal like guarantor‟s portfolio, trade license, bank solvency, CIB (Credit
Information Bureau) report,
CRG (Credit Rate Grading) report, TIN & VAT certificate, PNW (Personal Net Worth)
statement, applicant‟s profile.

2.11 Product &Services of NRBCB

The principal activities of the Bank are to provide all kinds of commercial banking,
consumer banking trade services, custody and clearing to its customers through its
branches in Bangladesh. NRB Commercial Bank is among the very few local banks
which do not follow the traditional, decentralized, geographically managed, branch
based business or profit model. Instead the bank manages its business and operation
vertically from the head office through 4 distinct business divisions namely:

 Corporate & Investment Banking;

 Retail Banking (including Cards);

 Treasury & Market Risks. &

 SME Banking

Deposits:

Corporate Money Maker

Current Deposit Account
Deposit Pension Scheme
Double Benefit Deposit Scheme
Fixed Deposit
Lakhopoti Savings Scheme
Millionaire Savings Scheme
Money Maker Scheme
Monthly Deposit Scheme
Priority Deposit
Saving Deposit Account
ShohojSanchay Deposit
Student Savings Scheme

66
 Student Savings Account
Short Notice Deposit
Triple Benefit Deposit Scheme

Loan Products

Agricultural Financing
Auto Finance
Construction Finance
Consumer Finance
Export Finance
Green Finance
Home Finance
Home Finance for NRB
Import Finance
Machinery Finance
Retail Finance
SME Finance
Stock Finance
Work Order Finance

Bill Collection
BRTA Bill
REN Bill
DESCO Bill
DPDC Bill
Foreign Trade product
Letter of Credit 
Back to Back Letter of Credit 
Foreign Demand Draft 
Inland Brick to Brick Local L/C
Inland Documents Bill Purchase
Remittance products,
 Pay Order (PO)
 Demand Draft (DD) 

67
Other Service Products
SMS Banking
ATM card
Mobile banking
Locker Service
Tele Banking

2.12 Function of General Banking of NRB Commercial Bank

The specific functions of general banking are as follows:

 Establishing of banker-customer relationship through account opening.

 Dispatching customer‟s money from one place to another.
 Taking deposits.
 Honoring cheques.
 Clearing cheques.

2.12 General Banking Department constitutes of the following sections:

Account Opening Section:

Banking business is very much correlated with banker customer relationship. To be a
customer one person must have some sort of banking relationship with the bank.
Account opening section establishes that relationship by opening a new account for the
customer.

68
Job Descriptions:
1. Opening different types of account.
2. Handling operation of different types of accounts.
3. Responsible for issuing if cheque books.
4. Transferring &closing different types of accounts.
5. Giving account statements to the clients.
6. Making different vouchers regarding above transactions.
7. Giving support to the valued clients of the Bank and so on.

Cheque
It is a written, dated and signed instrument that contains an unconditional order from
the drawer that directs a bank to pay a definite sum of money to a payee. In legal
terms, a cheque is a bill of exchange where the drawer is a bank. This is signed by the
account holder directing a certain person to pay certain amount of money only to or to
the order of a certain person or to by barer of the instrument, a cheque is always
supposed to be drawn against the funds in the person‟s account in the bank.
Issue of a Cheque Book
At the time of opening an account, a person is required to sign a “Cheque Book
Requisition Slip”. If the account opening form is found complete in all respects, a
cheque book is issued to client; the account number is written in cash leaf of the
cheque book and in it requisitions slip. The name and account number of the client is
also entered in the Departmental cheque books issued register against the particular
cheque book series and it is also recorded in the computer. Lastly the requisition slip is
preserved as voucher.

Clearing Section
Clearing a check means processing it so that funds are deducted from the payer's
account and put into the payee's account. NRBCB go through the process of settling
transactions between banks. Because so many transactions take place between banks
on a given day, bank clearing exists to process what each party owes or is owed in a
central location so the least amount of money actually changes hands.

69
Job Descriptions
 Issuing cheques.

 Giving 3 clearance seals on cheques (1 crossing seal and 2 endorsement seals).

 Categorizing cheques according to high value (500000tk.-above 500000tk.) and

regular value (below 500000tk.) allocation.

 Giving posting in the system software.

 Dishonoring cheques if any specific reason comes across.

 Passing cheques after declaration of Bangladesh Bank (Central bank of

Bangladesh).

 Giving account statement to the clients if he or she wants to know.

Inward Cheques
It means what are sent to the outside. Outward clearing cheques are own
bank‟scheques which are presented on the other concerned banks for collection
through clearing house of Bangladesh Bank.

Outward Cheques
It means what are receives from the outside. Outward clearing cheques are those
ones which have drawn from the other banks which will be cleared / honored
through the internal clearing system of NRBCB.
Clearing Seal
There are three necessary seals without which cheque cannot be either accepted or
passed. They are - one crossing seal and two endorsement seal. In crossing seal the
name of NRBCB is written. On the other hand, one endorsement seal is known as
clearing seal where date and clearing must be given. In another seal payee‟s A/C
credited for NRBCB is written. The authorizer put his or her signature on it for
authorization and issuance of the cheque.

Software
NRBCB use “Ultimas” software for clearing cheques. It is mainly such kind of
software making companies which only make various customized software for banking
activities of banks.

70
Cash section
Cash is one of the most important sections of general banking department because it
deals cash. This department is mainly engaged with cash receipt and cash payment.

Job Descriptions
 Receiving cash
 Paying Cash
 Issuing Vouchers
 Keeping record of receipts

Receiving of cash
Receipt of cash is the source of cash at branch. It may be from customer, from central
bank, from any other bank or any other branch of the same bank

Receiving Process:-

 Checking of deposit vouchers account amount word and figures.

 Count the cash if possible manually or by the counting machine.
 Check the Notes- Mutilated, Mismatched or forged.
 Put signature in the deposit voucher including counter foil.
 Pass on the credit voucher with counter foil to the receiving cashier.
 At the close of business hour sum up the register and tally it with the
Receiving registers.
 Totaled the entries and match it with the receiving total.
 Count the no. of vouchers
 Checked by officer and countersigned.
Cash is used by a bank for the payment to its customer and the surplus cash is remitted
to cash feeding branch.

Payment of cash Process:-

 Every payment must be paid in due course.
 Analysis of the instrument before payment.
 Passed for payment by canceling officer.

71
  Amount, date, endorsement/order/bearer.
 Obtain bearer signature on the backside of the instrument.
 Verify signature with the same obtained at the time to token.
 Write value on backside of the instrument.
 Affix cash paid stamp no. 26 in the face of the instrument.
 Entry the figure of the instrument in paying cashier book no.
 Return the un-paid instruments.
 Total the entries and balance it with the token and tally total.
 Write in word the total amount and put signature.
 Release of paid instrument from the paying cashier book.
 Send the vouchers to the respective department.

Cash balancing
All employee related to cash must ensure the balancing of cash has done correctly on
daily basis. For balancing of cash following works have to perform:-

 All cash register must be totaled and duly written in words and signed.
 Balancing them with each other.
 All register must be duly counter signed by checking officer.
 Balancing the register with the physical cash.
 Pass voucher if any surplus or short cash.
 Prepare cash position memo:
 Write cash balancing book.
 Ensure accounting of balance is correct.
 Prepare cash cum Day Book.

In the computerized branch hard copy “Day End” position is to be signed by cash in
charges and cash officer.

72
73
 Chapter -3
My Internship Experience at NRBC Bank Limited

3.1 Introduction
In November01, 2016 I was assigned by The NRB Commercial Bank HR personnel‟s
as an intern in the Mograpara, Sonargaon Branch. After that a schedule of the
internship program was given to me consist of the working schedule along with the job
responsibilities. Basically, a branch has 3 sections, Teller service, Customer service
and Relationship Management. I worked under the Customer service section of the
Mograpara, Sonargaon branch and for that reason I got longer time to gather
knowledge about that particular segment.

74
I worked mainly in general banking section.
In NRBCB, different types of services that I did are given below in

short-Opening bank account.

 Sending thanks letter to the new customer who are new in the branch.

 Issuing cheque book for the customer.

 Issue voucher of transfer money.

 Receive cheque of different bank for collection and send it to clearing

house
for collection.

 Outward cheques in register book.

 Checking account balance of clients.

 Closing a bank account.

 Giving cheque book.

 Supervise the loan and foreign trade documents.

3.2 Providing information as Front Desk officer

Front desk of NRB Commercial Bank, Mograpara Branch is one of the important parts
of general banking department. I tried to describe the scheme and facilities of the
bank. In addition, I tried to build an efficient communication bridge between the bank
and the clients. Moreover I strived to make the clients understand the easy way of
dealing with their money and be readily accessible facilities of the bank. I also
informed them the core systems of the central bank, risk and compliance. Information
were like providing banking data content, providing banking business processes,
providing services of the bank. I always tried to fulfill the requirements of clients and
customized in an easy way to make them understand keeping in view the requirements
of a bank.
3.3 Process of Opening of current & Savings Account
While opening new accounts a systematic process must be conducted in order to
ascertain the identification of the account holder and the beneficiaries/ nominees.
Passport size photograph of the account holder & Nominee along with Transaction
Profile and Known Your Customer Form (KYC) to be obtained in this process. Then

75
Thanks letter to be sent to the customer to his/her present address to verify account
holder‟s address.

Know your Customer Concept:

The officer related to account opening formalities must know details of their customers
because of the guidelines provided by the Central Bank to identify the source of money
and use of credit.
It is said in the view of bank that, the banker-customer relationship is commenced
through opening CD/STD/SB account. During the period of account opening, the
customers must complete the KYC Profile which includes residence address, business
address photographs, signatories, photocopy of valid passport, trade license, source of
money, TI Number, photocopy of VAT Certificate, In case of company: photocopy of
Memorandum of
Association, certificate of incorporation, certificate of Board of Investment, list of
directors, etc. as per requirement of the bank. Information regarding business pattern,
nature of business, and volume of business etc. can also be discovered. Any doubtful
transaction must be addressed and find out to take corrective measures as per
regulation of the Central Bank. Following documents are required to be completed
before a current or a savings account is opened in a bank.
Required Documents for Personal Account:

 Two copies of passport size photograph of the account holder/ person who will
operate the A/C duly attested by the introducer

 Account to be introduced by current/savings account holder

 Photocopy of valid passport/driving license/national ID card/ employer‟s
certificate/national certificate issued by the Ward Commissioner or Chairman
etc.

 Paper related to sources of income

 One copy passport size photograph of nominee(Attested by Account Holder)

TIN Certificate (if applicable)

Required Documents for Non-Personal (Corporate) Account:

76
Proprietorship Firm-
 Request letter/application in firm‟s letter-head pad for account opening purpose.

 Up-to-date trade license, TIN,VAT copies of the firm

 Seal of the firm & visiting card of the signatory/is (if applicable)

 2 copies of photographs of each signatory (attested by introducer)

 Photocopy of national id card/passport/citizenship certificate with the original

copy for
verification purpose

 Signature and 1 copy of photograph of each nominee (attested by the account

holder) Tenancy agreement copy (if applicable)

Partnership Firm-
 Request letter/application in firm‟s letter-head pad for account opening
purpose.

 Up-to-date trade license, TIN, VAT copies of the firm.

 Resolution regarding operation of bank account and signing of bank‟s charge
documents with execution of mortgage deeds and other bank‟s papers &
documents etc. As per partnership deed.

 Seal as per resolution & visiting card of the signatory.

 Two copies of photographs of each signatory (attested by introducer).

 Photocopy of national id card/passport/citizenship certificate with the original

copy for verification purpose.

 Signature and 1 copy of photograph of each nominee (attested by the account

holder).

 Membership certificate of trade association, chamber of commerce and industry

(if
applicable).

Limited company:
 Request letter/application in company‟s letter-head pad for account opening
purpose.

 Up-to-date trade license, tin, vat copies of the firm

77
  The certificate copy of memorandum and articles of association by register of
joint
stock companies & firms

 Up-to-date trade license, tin, vat copies of the firm(if applicable)

 Resolution regarding operation of bank account and signing of bank‟s charge
documents with execution of mortgage deeds and other bank‟s papers &
documents etc. As per memorandum and articles of association Seal as per
resolution.

 2 copies of photographs of each signatory (attested by introducer/chairman of

the company & visiting card of the signatories.)

 Photocopy of national id card/passport/citizenship certificate with the original

copy for verification purpose

 Complete bio-data with passport size photographs of all the directors of the
company duly singed by them.

 Membership certificate of chamber of commerce and industry, trade

association, stock exchange (if applicable)

 Tenancy agreement copy in between the firm and the landlord (if applicable)

 List of directors with complete present and permanent address with signature &
telephone nos. On letter-head pad of the company

School/college/educational institution
 Request letter/application in institution‟s letter-head pad for account
opening purpose.

 Two copies of photographs of each signatory (attested by introducer)

List of members of the managing committee.

After the above formalities are over, the banker opens an account in the name of the
applicant. General the minimum amount to be deposited initially is TK.500/- in case of
savings bank account and TK.1000/- in case of a current account. It may vary from
bank to bank. The bank then provides the customer with,

a) A pay-in-slip

b) A cheque book

c) Statement of account

78
3.4 Account Opening Form Fill up
Account opening form fill up are part of the one the tasks assigned to a NRB
Commercial Bank intern. There are different kinds of bank accounts starting from
current, savings, proprietorship, partnership etc. Every form has different rules for
maintain. These rules are declared by Bangladesh Bank.

Current Account
Current account is purely demand deposit account because the bank is bound to pay the
amount to the account holder on demand at any time. It is running and active account,
which may be operated upon any number of times during a working day. There is no
restriction on the number and the amount of withdrawals from a current account.
If the amount of deposit is below taka 1,000 on an average the bank has authority to
cut taka 50 from each account as subsidiary charge after every six months. Against this
account loan facility can be ensured. Usually one can open this account with taka 500.
One can open this sort of account through cash or check/bill. All the banks follow
almost the same rules for opening current account.

Savings account: Usually customers open this sort of account at a low interest for
only security. This is also an initiative to create people's savings tendency. Generally,
this account is to be opened at taka 1000. Interest is to be paid in June and December
after every six months. If money is withdrawn twice a week or more than taka 10,000
is withdrawn (if 25% more compared to total deposit) then interest is not paid. This
account guarantees loan. Almost all the banks follow the same rules in the field of
savings account, except foreign banks for varying deposit. On an average, all the banks
give around six percent interest.

Short Term Deposit Account (STD)

Customers deposit money for a shorter period of time. STD account can be treated as
semiterm deposit STD should be kept for at least thirty days to get interest. The
interest offered for STD is less than that of savings deposit. In practice, NRB
Commercial offers 5.00% rate of interest STD account. It may increase depending on
the fund. Volume of STD A/C is generally high. In NRB Commercial, various big
companies, organizations, Government Departments keep money in STD accounts.
Frequent withdrawal is discouraged and requires prior notice.

79
Fixed deposit
Fixed deposit is one, which is repayable after the expiry of a predetermined period
fixed by him. The period varies from 1 month to 1 year. These deposits are not
repayable on demand but they are withdrawal subject to a period of notice. Hence, it is
a popularly known as „Time Deposit‟ or „Time Liabilities”. Normally the money on a
fixed deposit is not repayable before the expiry of a fixed period. The depositor has to
fill an application form.
Before opening a Fixed Deposit Account a customer has to fill up an application form
which contains Amount in figures, Beneficiary‟s name and address, Period, Rate of
interest, Date of issue, Date of maturity, How the account will be operated ( singly or
jointly), Signature(s), F.D.R. No., Special instructions (if any).

After fulfilling the above information and depositing the amount, FDR account is
opened and a FDR receipt is issued and it is recorded in the FDR Register which
contains FDR account no, FDR (Fixed Deposit Receipt) no, Name of the FDR holder
with address, Maturity period, Maturity date, and Interest rate.

In case of Fixed Deposit Account the bank does not have to maintain a cash reserve.
So NRB offers 7% interest rate in Fixed Deposit accounts.

3.5 Account Closure:

If an account holder request to close his or her account, it can be closed. After
receiving an application from the customer to close an account, some procedures are
followed by a banker. The customer should be asked to draw the final check for the
amount standing to the credit of his account less the amount of closing and other
incidental charges and submit the unused cheque leaves. The A/C should be debited for
the account closing charges etc. and an authorized officer of the bank should destroy
unused cheque leaves. In case of Joint A/C, the applicant for closing the A/C should be
signed by all the joint holders.

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3.6 Card Delivery
An intern of NRB Commercial Bank is also assigned to play assistant role to this
service area. For example, by delivering debit credit cards to the customer or bearer,
keep the tracker of the regular cards received from the currier and reconcile of the
cards. There were four register note book for maintaining the cards; two is for new
issue cards and rest for lost and stolen card. In the both cases cards and pins maintain
by two separate individual for security purpose. There were two people in the hold of
card and pin of that branch. They have to maintain the existing card user with
increasing large number of new card user day by day. Moreover The NRBC Bank
Limited has an account opening system named “accelerated banking”. Under this
package bank provides the debit card instantly to the every customer.

3.7Pin Delivery
Pin is the core component of the debit cards. Without these pins customers cannot
withdraw money from their cards. Pins are also delivered in the same way as the card
by the intern.

Destruction
Bank cheque book, cards, pins expires after a certain period of time. When the time of
expirations comes closer bank sent letters and phone calls to the customers for
collecting their products. If customers fail to collect bank end the existence of that
product. This process is known as destruction. An intern of NRB Commercial Bank
plays an important role in
destruction. His / Her task is divided into three steps:

Step 1: Find out which check, card or pin is close to destruction and list down the
names categorizing them based on months.
Step 2: After letter sent from the bank call the listed customers and tell them to collect
within upcoming week.
Step 3: After the check, card or pin is destroyed systematically, destroy them manually

3.8 Job Description:

81
I worked in the retail or general banking division in The NRB Commercial Bank
Limited. I got the opportunity to work in customer service which is consist of card
division, remittance & clearing segment of the branch. When a customer enters in the
bank it‟s an intern‟s duty to guide him or her to the right service area.

The Customer Service area is divided into few sections such as, Cheque, pin, cards,
loan, remittance, pay order etc. On the first day of my work in the Customer Service
department, the CSM (Customer Service Manager) of the department explained all the
things related to the operations to me. He showed me how the total customer service
department works in the branch. He also made me familiarized with the various terms
and tools like different application form, procedure, that are used by that department to
make the life of employees easier. He also gave a brief description that how an account
can be open and the rules regulations for opening any kind of account in The NRB
Commercial Bank Limited. Some activities that were performed by me are discussed
below:

3.9 Lessons learned & challenges

Lessons Learned from Experience Point of View:

 Senior colleagues, acted like mentor, with lot of experience are great help for
fresh trainee like me. I learned much necessary information about the banking
sector and their activity form my senior colleague.
 As my focused concern was General Banking so I was more involved with that,
than other department. Now, it is very clear to me how NRB Commercial Bank
Limited operates their operation on the ground of general banking in this
country.
 Initially, I was conscious about my experience in banking sector. Thereafter, I
found out applying the academic knowledge in practical ground makes job
easier. I started applying my knowledge gathered from University in my
practical actions.

Lessons Learned from Working Environment Point of View:

 Learned how to deal with the clients in a critical situation and busy hour.
 Learned how to handle unfriendly colleague in different situation.

82
  Tried to overcome from the fear of unknown from the unfriendly
environment.
 Learned to tackle corporate culture and banking activities.
Lessons Learned from Employee Point of View:
 Learned the formalities to open several account in NRB Commercial Bank
Limited.
 Understood the requirements and importance of information for opening an
account.
 Learned the procedures to close an account.
 Dealing with information to client.
 Verifying signature in different issue was one of my learning‟s from the Bank.
 Learned the process to renew FDR account at the Bank.
 Knew formalities to issue a Pay Order.
 Learned how to issue inward and outward cheques.
 Learned the procedures to issue Demand Draft.
 Learned how to issue check book.
 Learned to issue and accept mails for Head Office

Lessons Learned Regarding Conduct as a Service Provider:
 Learned the way of conduct as a service provider.
 Learned how to match up with other colleague and clients.
 It was a great lesson for me to make the working environment friendly.

Lessons Learned from Personal Problems:

 Maintain the study and profession together sometimes become critical. I

understood that both are having negative effect on each other.
 Various training on banking and learning from the mistakes can bring
consistency and accuracy in work.
 Learned about the office environment.

All this above learning point will be helpful for my banking career by applying all
these.

83
3.10 Challenges Faced
 Without banking experience, I started my banking training in a newly raised
bank with huge pressure from the authority.
 Unusual activities of the clients like, without having proper supported
documents trying to open or close the account.
 At times, sending someone to draw the cheque book without the authorization
letter by the account holder.
 In some occasion, clients forget their signature and try to draw money from the
bank.
 Critical and arrogant clients handling were difficult.
 Rough behavior from clients for not agreeing with the Bank‟s rule and
regulations.
 Finally, continue with study and the profession together is tough.

3.11 Learning Outcome
From this Internship experience I have learned lots of new job that is done by a bank.
Till now I have visited a bank as a customer. When I joined as an intern, I learned that
how each and every work is done by the officers systematically as well as very
carefully. My learning outcomes from this internship experience are discussed below:

 Experienced the picture of corporate life which makes a person work for 8
hours continuously.
 Observed how a branch does play its role in banking.
 Learned how to deal with customers, how to talk to them and understand
customers‟ needs and demands.
 How to build strong business relationship and continue it for long term
 Working with colleagues and how to cooperate with them while doing a work
together.
 Giving full concentration on work to complete it on due time.
 Learned to overcome my challenges and execute my skills and build
selfconfidence.
 Learned how to work under pressure and tackle the critical situations.

84
85
 Chapter- 4
Theoretical Overview of Financial
Ratio

4.1 Financial ratio:

Result of one number or quantity divided by another. Ratios are the simplest
mathematical tools that reveal significant relationships hidden in mass of data, and
allow meaningful comparison. Some ratios are expressed as fractions or decimals, and
some as percentages.

4.2 Types of Financial ratios:

Four basic types of ratios are below that,
 Liquidity
 Solvency
 Profitability

Some ratios are given below:

86
Return on asset (ROA): Return on assets indicates the profitability on the assets of
the firm after all expenses and taxes. It is a common measure of managerial
performance. Generally, a higher ratio means better managerial performance and
efficient utilization of the assets of the firm and lower ratio is the indicator of
inefficient use of assets. ROA can be increased by firms either by increasing profit
margins or asset turnover but they can‟t do it simultaneously because of competition
and trade-off between turnover and margin.
ROA is calculated as under:
Return on Assets = Net Profit after Taxation / Total Assets

Return on equity (ROE): Return on equity indicates the profitability to shareholders

of the firm after all expenses and taxes. It measures how much the firm is earning
after tax. It is also an indicator of measuring managerial efficiency By and large,
higher ROE means better managerial performance; however, a higher return on equity
may be due to debt (financial leverage) or higher return on assets. Financial leverage
creates an important difference between ROA and ROE in that financial leverage
always magnifies ROE. This will always
be the case as long as the ROA is greater the interest rate on debt. Usually, there is higher
ROE for high growth companies. ROE is calculated as under:
Return on Equity = Net Profit after Taxation / Equity

Assets turnover ratio:

Assets turnover ratio measures the turnover of the firm‟s total assets. It is calculated by
dividing net interest income by total assets. Assets turnover ratio is calculated as under,
Assets Turnover = Net interest Income / Total Assets
Loan to deposit ratio: Loan to deposit is the most important ratio to measure the
liquidity condition of the bank. Bank with Low Loan to deposits considered to having
excessive liquidity, potentially lower profits, and hence less risk as compared to the
bank with high LDR. However, high LDR indicates that a bank has taken more
financial stress by making excessive loans and also shows risk that to meet
depositors‟ claims bank may have to sell some loans at loss. Loan to deposit ratio is a
form of percentage divided total loans by total deposits. Loan to deposit ratio is
calculated as under,

87
Loan to Deposit Ratio = Total Loans/Total Deposits

Net profit margin: Net Profit Margin is a ratio of profitability which is calculated
by dividing the net profit after taxation by revenues or net interest income. It measures
how much NRBCB‟s is actually earning from its every taka of revenue.Net profit
margin is calculated as under,
Net Profit Margin = Net Profit after Taxation / Net interest Income

Operating expenses to revenue:

the operating expenses ratio is a measure of what it costs to operate a piece of property
compared to the income that the property brings in. the operating An investor should
look for red flags such as higher maintenance expenses, operating income or utilities
that may deter him from purchasing a specific property. Operating expenses to revenue
is calculated as under,
Operating expenses to revenue= Operating income/Operating expenses

Equity multiplier
How many times the total assets are of the shareholders‟ equity is measure by equity
multiplier. In other words, it indicates the amount of assets per dollar of shareholders‟
equity.
Higher value of EM means that bank has used more debt to convert into assets with
share capital. Generally, the higher is the EM the greater is the risk for a bank. Equity
multiplier is calculated as under,
Equity multiplier= Total assets/Total equity

88
89
 Chapter- 5

Financial Ratio Analysis of NRBC Bank Limited

5.1 Financial performance measure:

A tools use by individual to conduct a quantitative analysis of information in a
company‟s financial statements. Ratios are calculated from current year numbers and
are then compared to previous years, other companies, the industry, or even the
economy to judge the performance of the company. Ratio analysis is predominately
used by proponents of fundamental analysis.
Ratio analysis is a study of the relationships between financial variables. It is very
important in fundamental analysis which investigates the financial health of any
financial institution. This ratio analysis gives frank financial information in this current
business world. By giving a glance anyone will be able to know what the position that
institution is now. Therefore managers, shareholders, creditor, etc. all take interest in
ratio analysis. For this reason to evaluate the performance of NRBCB the ratio analysis

90
has been selected. Here in this report contains the most common ratios and analyze to
evaluate the performance of NRBCB over the year 2013 to 2015.

To do an analysis, the following ratios and have been calculated:

5.1.1 Return on assets

PARTICULARS 2022 2021 2020 2019 2018
NET PROFIT AFTER 186.2% 223.0% 143.7% 122.9% 100.0%
TAX

Total Assets 100.0% 100.0% 100.0% 100.0% 100.0%

350.00%
300.00%
100.00%
250.00% 100.00%
200.00% 100.00%
100.00% TOTAL ASSETS
150.00% 100.00% NET OROFIT AFTER TAX
100.00% 223.00%
186.20%
143.70% 122.90%
50.00% 100.00%
0.00%
2022 2021 2020 2019 2018

Figure 5.1.1: Return on Assets

Interpretation: In figure 5.1.1 it is found that the value of ROA is showing very
satisfactory result that is good for the bank since it is increasing from year 2013 to
2015. Bank‟s assets increased at a higher rate compared to their net income. The
assets of NRB Commercial Bank are also increasing too much.

5.1.2 Return on equity

Table 5.1.2: Return on Equity
Net Profit after Taxation Equity

2022 186.20% 183.50%

2021 223.00% 167.60%

2020 143.70% 139.00%

2019 122.90% 116.20%

2018 100.00% 100.00%

91
 400.00% Equity
Net Profit after Taxation
350.00%
300.00% 167.60%
183.50%
250.00%
200.00% 139.00%
116.20%
150.00% 100.00%
100.00% 223.00%
186.20%
143.70% 122.90%
50.00% 100.00%
0.00%
2022 2021 2020 2019 2018

Figure 5.1.2: Return on Equity

Interpretation: In Figure 5.1.2 shows that, in return on equity increased in 2015 to

11.55% than 2013, 2014. In 2015 it upward to than last two year. Higher return on
equity maybe due to debt or higher return on assets .In 2015 return on equity was in
upward trend which is tremendous performance of the bank.

5.1.3 Assets turnover ratio:

Table 5.1.3: Assets turnover ratio
Net interest Income Total Assets

2022 298.80% 186.20%

2021 229.00% 223.00%

2020 173.90% 143.70%

2019 173.90% 122.90%

2018 100.00% 100.00%

500.00%
450.00%
400.00% 186.20%
350.00% 223.00%
300.00%
250.00% 143.70% 122.90% Total Assets
200.00% Net interest Income
150.00% 298.80% 100.00%
100.00% 229.00%
173.90% 173.90%
50.00% 100.00%
0.00%
2022 2021 2020 2019 2018

92
Figure: 5.1.3: Assets turnover ratio

Interpretation: In figure 5.1.3 it is found that,NRB Commercial Bank asset turnover

ratio was high. The ratios were 0.1538 times in year 2015 and 0.141 in 2014 and
0.0754 in 2013. These ratios indicate that NRBC Bank was generating a sufficient
volume of revenue given to its total asset investment. To increase this ratio NRBC
Bank had to utilize its sources of fund on those assets which bring more revenue to
the bank.

5.1.4 Operating expenses to revenue:

Table 5.1.4: Operation expenses to revenue
Operating income Operating expenses

2022 193.00% 258.80%

2021 136.40% 194.40%

2020 114.30% 178.00%

2019 121.30% 124.70%

2018 100.00% 100.00%

300.00%
250.00%
200.00%
150.00%
100.00%
50.00%
0.00%
2022 2021 2020 2019 2018

Operating income Operating expenses

Figure: 5.1.4: Operating expenses to revenue

Interpretation: In figure 5.1.4 shows that,the highest percentage of revenue in 2015
noted 124.42% against operating expense in the bank. Though it were 115.82% & 0%
2014 and 2013 respectively. It is clearly notify that the bank is earning revenue
increase gradually from the early period.

5.1.5 Net profit margin:

Table 5.1.5: Net profit margin
Net Profit after Taxation Net interest Income

2022 186.20% 209.30%

93
 2021 223.00% 155.20%

2020 143.70% 79.00%

2019 122.90% 118.10%

2018 100.00% 100.00%

250.00%

200.00%

150.00%
Net Profit after Taxation
100.00% Net interest Income

50.00%

0.00%
2022 2021 2020 2019 2018

Figure 5.1.5: Net profit margin

Interpretation: From the analysis, it has seen three years in 2013 to 2015 the
bank‟s net profit margin was in fluctuating mood. But in 2015 it achieved high
compare to 2012 to 2013.But in 2014 is decreased to 3.50% it increased highly and
turned into 11.92% in 2015. In 2015 net profit was too high that is only 11.92 %. So
their profit margin is satisfactory in 2015.

5.1.6 Loan to deposit ratio:

Table 5.1.6: Loan to deposit ratio
Total Loans Total Deposits
2022 68.00% 272.30%
2021 68.30% 212.40%
2020 64.20% 166.70%
2019 68.30% 132.90%
2018 71.80% 100.00%

94
 300.00% 272.30%
250.00%
212.40%
200.00% 166.70%
150.00% 132.90% Total Loans
100.00% Total Deposits
100.00% 68.00% 68.30% 68.30% 71.80%
64.20%
50.00%
0.00%
2022 2021 2020 2019 2018

Figure 5.1.6: Loan to deposit ratio

Interpretation: In figure 5.1.6 it is found that, It indicates how much productivity

the deposits are used. In year 2013, 2014 and 2015 the ratios of NRBCB was
respectively 75.71%, 83.45% and 80.43%. These ratios show a relationship between
loan and advances to total deposits. Analysis shows increased in 2015 from other
years.

5.1.7 Equity multiplier

Table 5.1.7: Equity multiplier
Total assets Total equity

2022 298.80% 298.80%

2021 229.00% 229.00%

2020 173.90% 173.90%

2019 134.40% 134.40%

2018 100.00% 100.00%

350.00%
300.00%
250.00%
200.00%
150.00%
100.00%
50.00%
0.00%
2022 2021 2020 2019 2018

Total assets Total equity

95
5.1.7: Equity multiplier
Interpretation: The figure 5.1.7, it is found that the value of equity multiplier
indicates the amount of assets per taka of shareholders‟ equity. the amount of equity
6.299 total shareholder in 2015 in where it were only 3.825 and 1.827 in the year of
2014 and 3013 respectively, Higher value of equity multiplier that, bank has used more
debt to convert into assets with sharecapital.

5.2 Summary of the Results

Ratio Trends Bank’s Position

Return on assets Upward Trends Good

Return on assets Upward Trends Good

Asset turnover ratio Upward Trends Good

Operating expenses to Upward Trends Good

revenue

Equity multiplier Upward Trends Poor

Net profit margin Upward Trends Good

Loan to deposit ratio Upward Trends Good

96
Chapter-6

97
6.1 Five Years Financial Summary
FigureinMillion(BDT)UnlessSpecified
Particulars 2022 2021 2020 2019 2018
balanceSheetMatrix
AuthorizedCapital 10000 10000 10000 10000 10000
8,286.49
(Continge
Paidup capital nt 7,929.66 7,376.43 5,825.17 5,710.95
uponappro
v- al of
10Th
AGM)
StatutoryReserve 3,065.01 2,467.27 1,866.79 1,463.85 1,061.29
StockholderEquity 12,935.32 11,808.62 9,797.54 8,189.94 7,094.31
SizeofBalanceSheet 200,356.06 153,552.38 116,620.41 90,118.08 86,598.12
Deposit 161,149.66 124,626.36 95,311.13 71,857.90 54,085.64
Loans & Advances/Investment under
136,174.05 104,898.31 74,835.73 62,015.02 48,151.88
Islamic Shahriah
InvestmentinMoneyandCapitalMarket 36,996.58 28,541.08 26,367.84 15,298.17 8,276.75
FixedAssets 1,883.20 1,828.38 835.06 506.22 481.96
off-balancesheetItems 50,265.91 53,600.42 35,446.63 27,408.20 19,455.25
InterestEarningAssets 179,598.56 136,555.98 104,117.82 80,400.10 60,133.88
Non-InterestEarningAssets 20,757.51 16,996.40 12,525.45 9,827.16 7,008.99
IncomeStatementMatrix
InterestIncome 11,178.65 7,902.90 6,620.95 7,024.97 5,801.72
InterestExpense 6,682.03 4,569.46 4,923.93 4,488.13 3,643.67
NetInterestIncome 4,496.62 3,333.45 1,697.02 2,536.85 2,158.05
Investmentincome 2,576.05 3,006.03 3,586.65 1,284.16 887.25
Non-InterestIncome 1,663.82 1,242.53 1,016.38 989.69 702.62
Totalincome 15,418.53 12,151.47 11,223.98 9,298.82 7,391.59
operatingExpense 4,697.37 3,527.55 3,232.06 2,223.55 1,843.76
TotalExpense 11,379.40 8,097.00 8,155.99 6,711.67 5,487.44
operatingProfit 4,039.13 4,054.46 3,068.00 2,587.14 1,904.16
Profitbeforetax 2,988.70 3,002.42 2,039.73 2,042.51 1,569.89
Provisionfortaxation 1,249.13 918.48 696.90 894.25 632.24
Profitaftertax 1,739.57 2,083.94 1,342.83 1,148.26 937.65
сapitalMeasure
RiskWeightedAssets 154,493.40 119,482.86 82,997.69 66,462.20 52,436.55
Capital Requirement Including
19,311.67 14,935.36 10,374.71 8,307.78 6,226.84
Conservation Buffer

98
 CoreCapital(TierI) 11,993.53 11,080.48 8,594.24 7,883.21 6,778.83
SupplementaryCapital(TierII) 7,227.74 4,988.85 1,796.99 1,024.04 573.68
RegulatoryCapital[TierI+II] 19,221.27 16,069.33 10,391.24 8,907.26 7,352.51
Tier–ICapitalRatio(%) 7.76% 9.27% 10.35% 11.86% 12.93%
Tier–IICapitalRatio(%) 4.68% 4.18% 2.17% 1.54% 1.09%
Total Capital to Risk Weighted Assets Ratio 12.44% 13.45% 12.52% 13.40% 14.02%
(CRAR)(%)
сreditQuality
ClassifiedLoan 6,381.21 4,767.33 2,191.08 1,985.09 1,414.40
PercentageofClassifiedLoan(%) 4.69% 4.56% 2.93% 3.20% 2.94%
ProvisionforUnclassifiedLoan 1,303.16 1,508.06 1,504.42 663.29 409.72
ProvisionforclassifiedLoan 2,522.23 1,803.94 1,102.23 846.92 723.74
Provisionforoff-balanceItems 441.19 480.79 289.1 220.16 160.46
ForeignExchangebusiness
Import 36,028.30 42,370.77 30,579.76 33,220.62 26,229.88
Export 33,735.60 30,652.26 28,070.50 29,216.00 25,091.91
Remittance 13,329.20 10,820.93 4,089.41 2,093.86 996.19
оperatingProfitratio
NetInterestMargin(NIM) 2.54% 2.47% 1.84% 3.61% 3.88%
CreditDepositRatio 84.50% 84.17% 78.66% 82.54% 85.91%
CostofDeposits 4.25% 4.25% 4.95% 6.98% 7.27%
operatingProfitMargin 26.20% 33.37% 27.33% 27.82% 25.76%
NetProfitMargin 11.28% 16.45% 11.96% 12.35% 12.69%
YieldonLoan&Advances 9.27% 8.79% 9.53% 12.88% 12.88%
AdministrativeCost 3.06% 3.74% 3.25% 3.00% 3.47%
CostofFund 7.31% 7.56% 8.20% 9.98% 10.74%
Spread(CostofDeposit) 5.02% 4.57% 4.61% 5.90% 5.61%
Spread(Costoffund) 1.97% 1.23% 1.33% 2.90% 2.14%
ReturnonEquity(RoE) 14.06% 19.29% 15.28% 15.04% 13.89%
ReturnonAssets(RoA) 0.98% 1.54% 1.34% 1.47% 1.50%
EquityMultiplier 15.48*Time 13.00 *Times 11.90*(Times 10.95*(Times 9.46*(Times
) ) )
DebtEquityRatio 138.17% 87.12% 42.19% 15.75% 4.25%
Performanceratio
ProfitPerEmployee 1.05 1.11 1.43 2.53 1.96
BurdenRatio 42.06% 67.49% 81.38% 58.49% 59.35%
InterestCoverageRatio 49.71% 46.77% 57.30% 56.11% 53.53%
Expense Coverage Ratio/Cost to Income
53.77% 49.93% 51.30% 46.22% 49.19%
Ratio
Dividend
Cash 7.50% 7.50% 7.50% 9% 0%

99
Stock 4.50% 7.50% 5.00% 2% 11%
DividendPayoutinTaka 951.56 1106.46 878.14 628.2 565.95
DividendPayoutRatio 54.70% 53.09% 65.39% 54.71% 60.36%
CashDividendPayoutRatio 20.51% 26.55% 39.24% 44.76% -
ShareInformationMatrix
828.64[Con-
tingentupo
Shareoutstanding 792.96 737.64 571.1 514.5
n
approvalo
f
10ThAGM]
No.ofShareHolder 18440 18956 64 65 65
Price-Earnings(PE)Ratio 11.87 13.38 - - -
EarningsPerShare(Taka) 2.19 2.83 2.31 1.97 1.82
NetAssetValuePerShare (Taka) 16.31 16.01 16.82 14.06 13.71
NetoperatingCashflowpershare(Taka) 9.38 0.02 15.88 12.56 10.13
оtherInformation
No.ofBranches 103 93 83 75 68
No.ofSub-Branches 925 857 287 32 -
No.ofForeignRemittanceAgency 2 1 0 0 0
No.ofForeignRemittanceSub-Agency 9 9 7 5 4
Agentoutlet 588 589 588 577 563
No.ofATM/CRM 81 69 56 53 51
No.ofRelationshipManagementAccount 182 171 175 160 160
No.ofEmployees 3864 3643 2,143 1022 970
No.ofNoSTRoAccount 24 21 13 13 13

10
0
 Chapter- 6
Findings of the study, PESTEL & SWOT Analysis of
NRBCB
6.1 Findings
 The liquidity condition of the bank is much better that the sign of continues
improvement.

 Return on assets ratio is higher that, indicates the effective managerial performance of
the NRBC bank.

 The earning of the shareholders is much higher that is proven by return on equity.

 To increase asset turnover, NRBC Bank had to utilize its sources of fund on those
assets which bring more revenue to the bank.

 Loan to deposit NRBC bank has taken more financial stress by making excessive
loans and also shows risk that to meet depositors.

 Net profit margin is positive of NRBC bank. So NRBC bank made more money
during that period.

 Operating expenses to revenue is positive. It is clearly notify that the NRBC bank is
earning revenue increase gradually from the early period.

6.2 PESTEL Analysis

For a business to succeed, overcoming the complex challenges in ever changing world and
creating proper mitigation strategies is vital. PESTEL analysis enables NRBC Bank to
identify key factors across some of the major domains that a!ect its business and operations-
both internal and external- that enable it to not only understand its intrinsic strengths, but
also its position within the competitive field.

P Political.
Macroeconomic factors The stability of the government and the political environment in
Bangladesh is now in an excellent condition under the visionary leadership of the current
regime. Periods of political unrest, protests, or frequent changes in government can disrupt
business operations and a!ect investor confidence. With the political stability, there has been
Continuity in government policies and regulations. These may include trade policies,
taxation laws, labor regulations, environmental standards, and industry-specific regulations.
Understanding and complying with these policies is crucial for operating in Bangladesh.
Bangladesh government’s giving priority to infrastructure development, including
transportation networks, power supply, telecommunications, and industrial zones, which a!
ect business operations and supply chains by improving connectivity and creating
opportunities for businesses. Corruption has been a concern in Bangladesh. Presently
Transparency initiatives and government e!orts to curb corruption has a positive influence on
the business environment. Bangladesh’s maintaining good international relations so various
trade agreements took place, which plays a significant role in shaping its business
environment.

Macroeconomic factors
GDP growth rate in Bangladesh stood at 7.25 percent in FY 2021-22, 0.05 percentage point
higher than the target rate and 0.31 percentage point higher than the previous fiscal year.
Medium-term forecasts for GDP growth rates are 7.5 percent in FY 2022- 23, 7.8 percent in
FY 2023-24 and 8.0 percent in FY 2024-25. Inflation in FY 2020-21 stood at 5.56 percent,
which is 0.09 percentage point lower than FY 2019-20. Like all over countries in the world,
an upward trend of price level is observed in Bangladesh as the economic damages created
by COVID-19 pandemic which is triggered by war in Ukraine
NRBCB Outlook
Bank continued its focus on CMSME (Cottage, Micro, Small and Medium Enterprises)
activities, with a particular emphasis on shifting its focus towards SME activities view to
reduce the large corporate dependency. Invest in digital banking solutions and technology to
enhance financial inclusion and access to banking services. This includes mobile banking,
internet banking, and other innovative financial products. Expand our digital reach to remote
areas and underserved segments of the population, fostering economic growth and financial
literacy. NRBC Bank provides its banking services through 103 branches and more than
thousands of sub-branches, booth and services centers across the country.

Macroeconomic factors
The total no. of employed is 7.08 crore according to BBS Report 2023. Agriculture continues
to be the chief source of employment which accounted for 45.33% of employment. The then
service sector and Industry sector accounted for 37.65% and 17.02% of total employment.
 The unemployment rate has come down to 3.6 percent. The female labour force participation
has increased and reached to 2.5 crore in 2022.
NRBCB Initiatives
NRBC Bank’s CSR philosophy is to have a meaningful and measurable impact on the lives of
economically, physically, and socially challenged communities of the country through an integrated
approach to development that focuses on fostering sustainable livelihoods, promoting education,
and enhancing skills. In 2022 our investment behind CSR activities stood at 113 Million.

Macroeconomic factors
Digital Bangladesh is a popular phrase while Bangladesh continues to go through a digital
transformation. The government has implemented a large number of projects relating to
digital technologies. National Policy was developed with a vision of “Digital Bangladesh to
Smart Bangladesh” by 2041 i.e. technologically advanced and sustainable society.
NRBCB Outlook
NRBC Bank has been crowned with the title of ‘Most Innovative Mobile Banking App
(NRBC Planet) in `The Global Economics Awards-2022’ by The Global Economics Ltd, a
UK-based financial publication and a quarterly business magazine. Our aim is to stay up to
date with the times and be a benchmark in technological adoption for others to follow. That’s
why the Bank is currently investing in new tools and platforms to adopt the latest
technologies and approaches

Macroeconomic factors
Bangladesh is vulnerable to climate change and natural disasters such as floods, cyclones,
and sea-level rise. There is a potential impact of these events on business operations, supply
chains, infrastructure, and risk management strategies. There is a growing practice of
incorporating environmental and social considerations into banking operations, products, and
services. It involves aligning banking practices with principles of sustainability, responsible
investing, and environmental stewardship. Green bonds and sustainable finance products are
becoming more popular.
 NRBCB Outlook
NRBC Bank aims to support the transition towards a low-carbon, resource-e!icient, and
socially inclusive economy. It combines financial services with environmental and social
considerations, fostering a more sustainable and resilient financial system.

Macroeconomic factors
Government policies and initiatives impact businesses in Bangladesh. Like industrial
policies, sector-specific regulations, trade policies, investment promotion measures,
environmental laws and regulations, consumer protection laws and regulations, Tax
regulations, Labor laws and regulations, Bangladesh Bank guideline. In 2022 Government
implemented a policy allowing investment clients to make partial payments of their dues
while remaining unclassified, which resulted in the rate of classification in Banking Sector
NRBCB Outlook
NRBC Bank is sincere with honoring and abiding by the standard set by the regulatory
bodies. Maintaining proper ethical standards has been an integral part of our organization’s
culture since inception and our employees always work with integrity and proper diligence
The policy allowing investment clients to make partial payments towards their dues while
remaining unclassified resulted in a decrease in the rate of classification.

6.3 SWOT Analysis of NRBCB

SWOT is an acronym for the internal strength and weakness of a firm and the environmental
Opportunity and Threat facing by that firm. So if we consider The NRBC Bank Limited as a
business firm and analyze its strength, weakness, opportunity and threat the scenario will be
as follows:
Strength
• Trustworthiness
• Good Management
• Cooperation with each other
• Regular Customers
• Membership with SWIFT
• Good banker-customer relationship
• Strong Financial Position
• Large Network- both nationally & Internationally
• Real- Time On-Line Banking
• Dual-Currency NRBC Visa Card- Unique in Bangladesh
Weakness
• Lack of proper motivation, training and job rotation.
• Lack of experienced employees in junior level management.
• Still a Problem Status Bank
• Lack of own ATM services.
• Large Branch Network in Rural Are
Opportunities
• SME Finance
 • Huge business area
• High growth of sales & trade Finance volume Steps taken by Bangladesh Bank
• High growth of sales & trade Finance volume
• Steps taken by Bangladesh Bank
• Investments on technology.
Threats
• FCBs and Third Generation Banks
• Aggressive SME Finance by New CBs
• Losing customers
• Entrance of new Private CBs
• Huge FDI flow
 Chapter-7
Recommendation & Conclusion
7.1 Recommendation
NRBCB should start strategic planning to increase the infrastructures and also important
constructs needed to support its large customer base. So, considering the service sector of
Bangladesh, NRBCB should be more conscious to deal with its customers as the customers
have now more choice to bank with and there are institutions that are intensifying
competition by focusing more on superb customer service.

To identify these bank needs proper information system is required badly. Customer feedback
can make value to increase right services and relations to the right customers and increase
precise commitment, loyalty, trust and satisfaction to become with huge good relationship.
NRBCB has several services gap to authentic of considerate the consumer behavior and their
potential attitude, which made them deficient in modern banks. NRBCB has to minimize
their service gap though strong study on customer objection, expectation, perception and
critical internal marketing aspects. Steps should be taken to implement the new process in
order to ensure a smooth service as promised to customers.

 Employees are needed to give adequate training to work and handle clients under
pressure. In this case both the branch authorities and higher authorities can persuade
each other to train the employees.

 NRBCB should increase more Consumer Banking activity. Their Consumer banking
activity is quite satisfactory but it will be better if they can put attention on individual
customer.

 They should invent other type of deposit to attract more customers which is different
from other banks.

 NRBCB should maintain more cash and deposit balances with other banks. Because it
is desirable that banks keep their cash and balance with other bank to such extent so
that it can minimize the chance of liquidity crunch.

 Should develop more strategic planning as to compete with its rival banks.

 Should increase the number of ATMs and ensure their smooth operations.

 NRBCB should recruit more capable & experiences employees to spread the products
all over the country.
  NRBCB should maintain errors-free customer‟s record & database which will help to
identify the major customer‟s facility requirements.

7.2 Conclusion
Since the banking service especially the private Banks are doing an outstanding business, so
it is clear that the modern people are more concerned about securing their valuable assets and
get high-quality and timely services. For this reason lot of new commercial bank has been
established in last few years and these banks have made this banking sector very competitive.
So, now banks have to organize their operation and do their operations according to the need
of the market. Banking sectors no more depends on a traditional method of banking. In this
competitive world this sector has trenched its wings wide enough to cover any kind of
financial services anywhere in this world. The major task for banks, to survive in this
competitive environment is by managing its assets and liabilities in an efficient way. NRB
Commercial Bank is the most promising bank in Bangladesh. Every day NRB Commercial
Bank endeavor to increase their product and services although they provide a wide range of
product of services to their customers. NRB Commercial Bank is helping the economy of
Bangladesh by remitting of funds both local and foreign. For helping the people the bank
provides bridge financing loan, working capital loan to its corporate clients. As modern
function NRB Commercial Bank provides credit card facility, ATM card facility and any
branch banking facility to its customers.

This project concentrated mostly on the customer services of the Mograpara branch and
identified some valuable information that could make the services more attractive and also
enhance the banks reputation among the customers. With the current performance of the Bank
and with little improvement here and there will certainly make NRB Commercial Bank one
of the best Private Bank in Bangladesh in the near future.
Reference
 Annual report-2018, The NRBC Bank Limited.

 Annual report-2019, The NRBC Bank Limited.

 Annual report-2021, The NRBC Bank Limited

 Annual report-2022, The NRBC Bank Limited

 Aydogan, k, (1990).An Investigation of Performance and Operational Efficiency in

Turkish Banking Industry, The central bank of republic of Turkey, discussion paper
No: 9022
 C.R. Kothari, (2004), Research Methodology and Techniques, New age international
Publisher, New Delhi, 2nd Edition. 

 Islam M.N (2015), An Introduction to Research Methods, A Handbook for Business

& Health Research, Mullick& Brothers, 3rd Edition. 
 Lawrence J. Gitman, Chad J. Zutter (2010) Managerial Finance, Publisher The
Prentice Hall Series in Finance, 13th Edition.
 Mohin S.M (2008), Performance of Islamic Banking and Conventional Banking in

Pakistan: A Comparative Study, University of SKOVDE

 Rose, P. S. (2016). Commercial Bank management, 5th Edition, McGraw-Hill/Irwin
 www.google.com
 www.nrbcommercialbank.com