I hereby inform you that I have completed an internship report on "Financial Performance Analysis of Janata Bank Limited" which was prepared as a requirement for completion of the MBA program of the Department of Business Administration, Daffodil International University. This is to certify that the Internship Report on “Financial Performance Analysis of Janata Bank Limited” has been submitted for the award of Master of Business Administration (MBA) Degree in Finance, Daffodil International University and original work done by Md. No part of the internship report has previously been submitted for any degree, certificate, title or recognition.
The main objective of this report is to know the functions of financial activities of Janata Bank Limited and to identify some problems of finance and accounting activities and to make possible recommendations. This report explains the financial activities and performance of Janata Bank Limited. Financial ratio of Janata Bank Limited is good but some sectors are not good because development and growing ratio is very slow.
The first chapter Introduction of the report focuses on the background of the study, company profile, vision, mission, rationale of the study, objectives of the study and limitations of the study etc. As a standout among the most effective in managing a business account on the planet, financial professionals have a certain dimension of confirming the solidity of the money saving framework. Financial statement analysis is a strategy used by stakeholders, such as speculators, lenders, and the board of directors, to evaluate a company's past, current, and expected conditions and operations.
It demonstrates the mix of wage-creating advantages and the mix of capital sources, whether from current or long-term liability or value subsidization.
Janata Bank at a Glance
Vision of Janata Bank Limited
Mission of Janata Bank Limited
Core Values of Janata Bank Limited
Scope of the study
Objectives of Janata Bank Limited
Broad Objective
Specific Objectives
Literature Review
A review of the literature suggests an accumulation of implications from different reviews that are identified with this review. Considers reviewing past analysts who identify with the current research in any capacity. In addition, Gopinathan (2009) presented that the investigation of money-related relationships can uncover better speculation opportunities for financial professionals, as the investigation of relationships assesses various parts of the execution and dissects the essential elements of an organization or foundation.
Andrew and Schmidgall (1993) in their investigation arranged monetary ratios into five classifications "liquidity ratios, solvency ratios, action ratios, profitability ratios, and work ratios". They showed that money-related proportions themselves do not provide profitable data about a company's performance, Andrew (1993) led in his research on the vehicle industry researched the usage ratio of organizations and suggested that a capital structure that promotes prestige. Hitchings (1999) in his investigation understood that proportion investigation is a delicate and profitable tool in credit evaluation, which is to estimate the capacity of a borrower to fulfill his obligations.
He uses composite file way to deal with a break the operational skill and productivity and recommended to strengthen the health, profitability spontaneous creation, working capital and in the implementation of established resources. In the midst of his investigation, he found that budget ratio investigations are likewise successful in the vehicle industry, it controls the overseeing body to decide powerful and effective systems and recognize the weak regions that require consideration. Chen and Shimerda (1981) noted in their investigation that there are 41 diverse money-related proportions that have previously been adequately used in studies and conclude that it is difficult to select proportion with the imprecise and total components as the delegated monetary proportion for the viewed variables. .
In their investigation, Virtanen and Yli-Olli (1989) tried the world action of money-related proportion spread and found that the business cycle influences the cross-sectional monetary proportion transmissions.
Methodology
Research Design
Data Collection Method
Sources of Data
Sources of Primary Information
Sources of Secondary Information
Limitations
Ratio Analysis
Money-related ratios can be used to analyze designs and to balance the organization's finances with those of various firms. Scope investigation is the calculation and relationship of scope obtained from the information in an association's fiscal reports. It is portrayed as the effective use of scope to decipher the spending abbreviations so that the quality and shortcomings of a firm, and its chronic execution and current budget condition can be resolved.
With the help of scope, it is possible to review a few angles at the end of the review, for example, the company's money related prosperity, benefit and operational efficiency. It gives noteworthy data on the connection between the implementation of different jobs. a) Liquidity indicators b) Financial leverage indicators c) Profitability indicators d) Activity indicators.
Liquidity Ratios
Current Ratio
Net Working Capital
Leverage Ratios
Using a mix of interest, commitment, valuation and interest points, utilization ratios are used to assess an association's ability to meet all of its cash obligations. Therefore, examiners should be aware of the difference in cash-related usage between associations from different organizations. For example, associations in the cash holding industry usually work with high utilization as protection, their points of interest are practically collateralized.
The intrigues inclusion proportion reveals to us how viable an association can pay interest costs identified with the obligation they start with now. The scope is planned to understand the share of owed energy as part of an association's salary before interest and liabilities (EBIT). This scope assesses how much functioning compensation can rot before the company can't meet its annual interest costs.
Since in 2013 they issued a somewhat high number of whole deal credits and do not have an extraordinary liquidity position, their EBIT ended up being high, making the TIE somewhat high. The extent of the total commitment to state assets, all things considered, called the commitment extent, measures the dimension of benefits given by the credit managers. The liability extent is dictated by separating a total whole trade and transitory liabilities with the total assets.
The higher the degree, the more use the association makes and the more risk it tolerates.
Time Interest Earned
Debt Ratio
It is a typical proportion of the long-term same-old suitability of the organization and, in addition to the current proportion, a proportion of its liquidity or its ability to cover costs. Later, the obligation to evaluate the calculations often includes only long-term liabilities as opposed to the total liabilities of the organization. A high obligation share valuation indicates that the organization has forced financing of its activities with obligation and therefore should pay enthusiasm for this financing.
Debt to Equity Ratio
Profitability Ratios
This part of the discussions about the unmistakable scope of the companies benefits and financial execution. These scopes, like the operational performance scopes, provide customers with a fair understanding of how well the association utilized its advantages in obtaining benefits and financial specialist consideration. The entire profit of an association is fundamental to both the survival of the association and also the preferred position held by financial specialists.
It is these scopes that information in them can largely provide an indispensable "advantage". The size of the gain shows the combined effects of liquidity, an asset for civil servants and commitment to work outcomes. This size provides an overview of the benefit the company has achieved and the complexity of these numbers and the size of the company, the focuses the company uses or its offering.
The net profit margin gives us the net advantage the company gains per dollar of bids. This advantage shows the advantage after all the costs have been achieved, it shows what % of the traffic goes to the net advantage. The development in volume demonstrates that the company is passing on a greater net bidding advantage than before.
ROA, a measure of efficiency of an association, proportional to the profit of a financial year, divided over the total assets, expressed as a percentage. The beginning of this magnitude is that if an association is going to start an assignment, they want to get a landing on it, ROA is the submission they would get. If the ROA is higher than the pace the association is achieving, the effort should be recognized.
Net Profit margin
Return on Assets (ROA)
Activity Ratios
Return on Equity (ROE)
Total Asset Turnover
SWOT Analysis
SWOT analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities and threats of a project or business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.
Strengths
Weaknesses
Opportunities
Threats
Findings
Leverage ratios show the high risk associated with the organization's generally used ratios, measuring the level of assets given by the banks. The extent of an association's total resources is financed with a high level of acquired reserves. This may have happened again due to the issue of even more total agreement commitment in 2014 and 2015.
Recommendations
Conclusion
