With pleasure, I am submitting my internship report "Financial Performance Analysis of Bangladesh Krishi Bank" which was given to me as part of my MBA program. I have tried my best to complete this report with necessary information and suggestion from you. I am pleased to witness that Internship Report on "Financial Performance Analysis of Bangladesh Krishi Bank" prepared by Shahin Alam with ID no of Master of Business Administration (Major in Finance) under Department of Business Administration.
First, I want to thank Almighty Allah for giving me good health to complete this report on time. Syed Mizanur Rahman his constant support, advice, guidance throughout the intact making of this report. Last but not least; I would like to thank all the members of the Bangladesh Krishi Bank Limited corporate branch and their help and support throughout the completion of this report.
The fourth chapter deals with the different types of analysis and results on the evaluation of investments and financial results. The main findings of the study are as follows: BKB's financial performance is very restrictive, the bank does not care much about the advertising process, the bank has no written guidelines for lending, the loan sanctioning process is long, etc.
Introduction
Origin of the Study
Objectives of the Study
Research Methods
Importance of the Study
Restrictions of the Study
Specialized Banks
The Role of Specialized Banks
Specialized Banks in Bangladesh
Logo of Bangladesh Krishi Bank
Vision of Bangladesh Krishi Bank
Mission of Bangladesh Krishi Bank
Trade Values
Social responsibility: BKB is a socially responsible institution that does not lend to companies with negative effects on the environment and people.
Corporate information of Bangladesh Krishi Bank
Branch network of Krishi Bank
General Activities or Services
Deposit Service
Commercial Service
Loan Service
Depository Services
- Current Account
- Savings Account
- Term Deposits
Business Services
- Draft Application (DD)
- Mail Transfer (MT)
- Transfer (TT)
- Payment Order (PO)
Cash from this branch at another branch location of another bank against brokerage commission for this security must be transferred to the account of the other branch. The message itself is sent by telephone or telex and the paying branch will pay on receipt of the message.
Loan Services
Accounting Procedure in the BKB
Many POs use this DG and do not need to open a bank account. In the event of the death of one or more holders, it calculates how the amount will be paid out and to whom the securities will be transferred. All joint account holders must sign the account opening form and special instructions to show their consent.
But there are specific types of account holders, such as joint accounts, secondary accounts, illiterate accounts, blind accounts, deaf-mute accounts and so on.
Accounting Procedure
When the Bank Close the Account
Types of Accountant
Types of Specific Accounts Holders
- Minor
- Illiterate People
- The Blind
- Pardanashin Women
Payment of Money
- Counter
- Verifying the Check
- Honoring
- Check Cancellation
If the signature is correct, he will check the check in another register and cancel it by signing the check. Once the check is canceled, it will be endorsed for payment, it will be brought to the cashier by the peon.
Cash Receipt
Check Honoring Procedure
Checks Dishonoring by the Bank
The objection notice compares the customer's signature given on check with his signature card. If the customer's signature on the check is fake or does not match his signature, it is kept in a bank account.
Concept About Cash Scroll, Clean Cash, General Leader and General Leader Abstract
- Cash Scroll
- Clean Cash
- General Ledger
- General Ledger Abstract
Different Types of Voucher
Procedure of Loan Recovery
If the customer's signature on the check is forged or does not match his signature, it will be held in a bank account. v. If the check is issued for more than 6 months. vii.. 3.11 Concept on Cash Scroll, Clean Cash, General Leader and General Leader Summary.. a) Normal Procedure: The normal procedure for recovering a loan is divided into several stages. Send an inquiry notice: An inquiry notice is sent to the borrower before the due date of the loan or payment due.
If the borrower fails to repay the loan and interest after the due date, after receiving the demand notice to the borrower by registered mail, the bank must send a legal opinion to the borrower. In addition to the above two notices, a special notice under the signature of the DC will be sent to the responsible UN borrower to keep him under the mental constraint of repaying the loan. In case of failure of the normal loan recovery procedure, the borrower is prosecuted.
To analyze the financial performance, all calculations such as horizontal analysis, common size statements and ratio analysis are given as follows:
Horizontal Analysis (Trend Analysis)
During the five years 2014-2018 of concentrate, the total development of BKB's net intrigue wages expanded. The table above shows that there have been huge changes in net intrigue wages every year. The table above shows that there have been huge changes in net intrigue wages every year.
Financial Ratio Analysis
- Liquidity Ratio
- Profitability Ratio
- Solvency Ratio
- Activity Ratio
- Time Interest Earned Ratio
From the above Flow Ratio of BKB it appears that the Flow Ratio did not meet the standard of 2:1 in any of the years. From the above table it can be seen that the net working capital ratio of BKB in 2017 was 0.17 and it increased from the previous years. And this was a significant change for BKB, because in the previous three years the percentage of the ratio was low.
This ratio is calculated to measure the profit after tax compared to the amount invested in the total assets to determine whether the assets are being used correctly or not. Some authors believe that a rate of return on total assets of 10% to 12% is a reasonable standard. Profit per store measures the productivity of a partnership by revealing how much profit an organization creates with cash savers in the bank.
Their absolute resources and their liabilities are expanding in much the same range. This is great from a risk perspective, in light of the fact that higher usage means higher profit.
Findings
- Strengths
- Weaknesses
Recommendations
I think that BKB should focus on agriculture because more than 70 percent of Bangladesh's population and 77 percent of its workforce live in rural areas. Almost half of all Bangladeshi workers and two-thirds in rural areas are directly employed in agriculture, and about 87 percent of rural households rely on agriculture for at least part of their income.
Conclusion
