With all due respect, I would like to inform you that it gives me great pleasure to submit the report on “Financial Performance Analysis of Bangladesh Krishi Bank” as a mandatory requirement for MBA (Internship) program. While supervising the work report, I have gathered extensive knowledge about the banking activities of Bangladesh Krishi Bank. I am pleased to confirm that the Internship Report on Financial Performance Analysis of Bangladesh Krishi Bank, A Study on Sonargaon Branch, Narayangonj, accompanied by Mustafizur Rahman with ID no.
Mustafizur Rahman worked with Bangladesh Krishi Bank, Sonargaon Branch, Narayangonj as a prison under my rule. I am solely grateful to all the chiefs and heads of Bangladesh Krishi Bank who extended their sincere cooperation during my reporting period. My task also benefited significantly from numerous educational dialogues from various experts at Krishi Bank in Bangladesh.
What's more, last but not the least, I might like to thank all other magnificent employees working in Bangladesh Krishi Bank. Bangladesh Krishi Bank is a leader and extraordinary commercial bank in the field of banking.
Origin of the report
Objectives of the report
Scope of the report
Methodology of the report
Study Design
Limitation of the report
Chapter – 2
- History of Bangladesh Krishi Bank
- Mission
- Vision
- Core Objectives of Bangladesh Krishi Bank
- Goals of Bangladesh Krishi Bank
- The Board of Directors
- Organizational Structure of Bangladesh Krishi Bank
- Strategies of Bangladesh Krishi Bank
- Products of Bangladesh Krishi Bank
- Services of Bangladesh Krishi Bank
The Board of Directors of the Bank, appointed by the Government of the People's Republic of Bangladesh, consists of the Chairman and ten directors, including eight authorities, including the Managing Director and other non-authorized persons. The executive board is three-part, consisting of the president, the general manager and the director. About 85% of the total population of Bangladesh is either specifically or consequentially dependent on horticulture, which contributes significantly to the GDP.
The Bank is governed by the strategies and standards of the Government of the People's Republic of Bangladesh. The bank started the busy business since 1977 with the aim of creating a reserve increasingly borrowed from the funds of inactive and urban districts and donating them for the improvement of the economy. BKB prepares the annual work plan with a dream of achieving food independence through improving agriculture, pursuing agro-import substitute items, catering to the growing demand for horticulture credit and identifying suitable regions for extension ventures. rural to realize practical development in the area. .
Despite the fact that it is a specific bank in the agrarian sector, it has the same capabilities as all other commercial banks. To persist among the unsurpassed banks in Bangladesh in terms of efficiency and assets.
Chapter – 3
- What is performance?
- What is Financial Performance?
- Financial Performance Analysis
- Tools of Financial Performance Analysis
- Horizontal Analysis (Trend Analysis)
- Common Size Statements
- Financial Ratio Analysis
- Liquidity Ratio
- Profitability Ratio
- Solvency Ratio
- Activity Ratio
- Risk Ratio
In the sense of the limit, the presentations elude the satisfaction of a given job, contrasted with preset standards of accuracy, sincerity, cost and speed. The analysis of the financial consultation is the approach just before distinguishing between the financial problems of the organization and the financial shortcomings in terms of ownership, which establishes the coherence between the devices of the balance sheet and the profit and loss account. The reputation of the word 'research' is to understand or isolate a thing into its module or segment parts to follow its overtones with the things as a whole and with each other.
The payment exploration is a procedure in which the coherence between the parts of the fiscal report is weighed to gain a better picture of the position and performance of the organization. Following are the tools used for analyzing the organization's monetary concert. In this horizontal analysis of the financial statement, here all data from 2012 to 2016 are shown by the amount, increase or decrease in the amount.
The total size income statement is commonly used in financial statement analysis to compare companies operating in the same or different industries or to compare time periods. The same company, we can basically say that the usual interpretation of the size is the articulation payment, where each record is communicated as a level of bid evaluation. Liquidity suggests the liquidity of the association's overall cash position---the ease with which it can take care of its tabs.
The profitability ratio measures the general performance of the organization in terms of the absolute income created from its activities. At the end of the day, ROA measures how productively an organization can align their resources to generate revenue over a period of time. It addresses the profitability of the bank by stating how much money the bank spawns with the coin that the bondholders have funded.
Controlling fraction is one of quite a few economic dimensions that deal with how much principal is generated in a commitment arrangement (loan) or measures a company's ability to come across transversal monetarist compulsions. The ratio of loans to total assets and the ratio of loans to total deposits are below the risk ratio. The loan-to-total assets ratio measures total outstanding mortgages as a measure of total money.
Chapter – 4
Horizontal Analysis (Trend Analysis)
Interpretation
Operating Expenditure
During the five centuries of research, the overall increase in BKB's operating costs was improved. On or after the table on the upper floor, the deviations in the functional costs were withdrawn in one go. Over the period of the five centuries of research, the overall evolution of the BKB's net return after taxes fluctuated.
Over the five years of the study, the overall progression of BKB's total assets increased. Through five eons of scholarship, the overall development of BKB's general legal obligations has increased.
Common Size statement
Common Size Analysis of Bangladesh Krishi Bank Income Statement
Pay & Allowance of Managing Director
Depreciation & Repairs of Bank property
Profit before provision &
Provision for Loans and Advances
Provision for Diminution in value of Investments
Common Size Analysis of Bangladesh Krishi Bank Balance Sheet
Cash in Hand (including foreign currencies)
Steadiness with
Bangladesh bank and its Agent Bank(s)
Balance with other Banks and financial
Money at Call and Short Notice
Loans, Cash Credits , Overdrafts etc
Bills Purchased and Discounted
Fixed Asset including Land , Building ,
Furniture and Fixtures
Total Property and Assets
Liabilities and Capital Liabilities
Deposits and Other Accounts
Current Accounts and Contingency Accounts
Capital / Owner’s equity
Retained Earnings Surplus
Total Capital / Owners Equity
Total Liabilities and Owners Equity
Financial Ratio Analysis
Financial Ratio Analysis Of BKB
- Liquidity Ratio
- Profitability Ratio
- Solvency Ratio
- Activity Ratio
- Risk Ratio
- Time Interest Earned Ratio
From the above current ratio for BKB, it appears that the current ratio in any of the years did not meet the standard, which is 2:1. This graph shows that the current ratio continuously drops from time to time, which is a corrupt emblem of the series. From the above table, it can be seen that BKB's net working capital ratio was 0.17 in 2017 and it increased than the previous years.
And this was quite a change for BKB as the ratio percentage was low in the previous three years. This ratio is intended in advance to quantify the toll yield compared to the costs financed in the commons to determine whether the resources are being used properly or not. Some dramatists believe that a rate of return on total assets of 10% to 12% is a reasonable standard.
Return on deposits determines the cost-effectiveness of a conglomerate by carefully matching the amount of revenue a company brings in to the amount of money depositors have in the bank. Nevertheless, there are insignificant instabilities. Bangladesh Krishi Bank has been smart to maintain an average debt-to-GDP ratio of 1.21 between 2013 and 20017. This increase in the debt ratio is a positive signal for the bank as it earns higher profits by increasing loans.
This chart illustrates that Bangladesh Krishi Bank's loan-to-total recovery ratio has declined year-on-year.
Chapter - 5
- Findings
- Horizontal Analysis
- Common-size Analysis
- Financial Ratio Analysis
- Recommendations
- Conclusion
- References
In the function of examining the budget presentation, positive and damaging revelations can be seen. Net interest income: Across the country is a sliding trend in available concentration earnings deviations. Total assets: BKB's total assets growth has increased and the condition of total assets of this company is quite good.
Total Liabilities: This company's total liabilities are increasing and that percentage is 4.33%, which varieties, their communication skill is tolerable. Common Dimension Return Proclamation: In this breakdown, all measurements of the dividend notice items grow year by year. However, it will welcome some issues which will be useful for the financial and overall performance function.
BKB should increase current assets and reduce current liabilities to run their banking activities smoothly. If the owner makes an additional enterprise of the bank, the bank's total current assets will increase but there is no increase in its current liabilities.. BKB should reduce operating overheads by lowering the cost of espousal technology and procurement and acclimating their phones to a cloud-based system.
BKB should check the debtor's collection period, which is the most important part of current assets.. Since its inception, Bangladesh Krishi Bank (BKB) has performed significant administration in the improvement of the economy of Bangladesh, especially rustic economy. Despite trying to do well in certain angles, Bangladesh Krishi Bank faced some money issues every now and then.
Some of the issues were extreme terrible loans, lack of advances and advances, lack of cash in hand due to safe deposit limit etc. These issues stimulate from time to time due to monetary register blockage, funding cost variance, capital market development, currency advertising growth etc. If this continues with us, believe that Bangladesh Krishi Bank will grow significantly later on.
