Internship Report

On

Financial Analysis & General banking Activities of

Uttara Bank Limited

0
 Internship Report

On

Financial Analysis & General banking Activities of

Uttara Bank Limited

Course ID: BUS400

Submitted to:

Riyashad Ahmed

Assistant Professor

BRAC Business School

BRAC University

Submitted by:

Masum Islam

BBA Program

ID: 10204047

BRAC UNIVERSITY

Date of Submission:28th December, 2014

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LETTER OF TRANSMITTAL

Date: 28th December, 2014

Riyashad Ahmed

Assistant Professor

BRAC Business School

BRAC University

Subject: Submission of the internship report.

Dear Sir,

I am pleased to present the final internship report on “Financial Analysis and General Banking
Activities of Uttara Bank Limited.” prepared as per the requirement of BBA program. This
report is extremely valuable to me as it has helped me to gain practical experience regarding
general banking activities. My internship with Uttara Bank Limited has been a worthwhile
experience and the exposure to such organization is definite value to me.

I sincerely hope that this report will meet your expectations. If you have any queries regarding
this report, please let me informed.

Sincerely Yours,

Masum Islam

BBA Program

ID # 10204047

BRAC Business School

BRAC University

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ACKNOWLEDGEMENT

At first, I would like to express my gratitude to almighty Allah for granting me the strength
and opportunity to complete the BBA program and finally this internship report successfully. I
am taking this privilege to deliver my gratefulness to each and every people who are involved
with me in every phase of our lives. I am grateful to my parents without whom I cannot be
here. They were beside me in every single situation and are still with me. Without the support
of my parents, I could not be able to achieve my objectives and goals. Then I am deeply
grateful to my supervisor Mr. Riyashad Ahmed (Assistant Professor, BRAC Business School,
BRAC University) for his stimulating inspiration, kind guidance, valuable suggestions and
sagacious advice during my internship period. Her suggestions & guidance have made the
report a good manner. I express my sincere gratitude to Mr. Monoarul Haque (Manager, UBL,
Gulshan Branch) to give me the opportunity to proceed on my internship in Uttara Bank
Limited. I also express my heartiest gratitude to Mahfuza huq and other officers of gulshan
branch for their cordial attitude & extending help whish make me able to prepare my
internship report properly.

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TABLE OF CONTENT:

EXECUTIVE SUMMARY 5
INTRODUCTION 6
ORGANIZATION OVERVIEW 6-14
History of Bank in Bangladesh 6
Overview of Uttara Bank Limited 7
Technologies, Products & Services of UBL 9
Different Wings 12
Highlights of Uttara Bank Limited 14
ABOUT JOB 15
PROJECT 16-45
Summery 16
Objective 17
Scope Of The Report 17
Methodology 18
Limitations 20
HORIZONTAL ANALYSIS 21-34
Horizontal Analysis of Balance Sheet 22
RATIO ANALYSIS 35-45
FINDINGS 45
RECOMMENDATIONS 46
CONCLUSION 48
BIBLIOGRAPHY 49
APPENDIX 50-55

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EXECUTIVE SUMMARY

This internship report has been prepared as a part of an BBA program. This report contains the
facts related to a particular organization in which the student was directed to do internship on a
three months basis. Supervisors, both from the university and from the organization, guided
the student in writing this report. I was assigned for doing internship in Uttara Bank Limited
for the time period starting from September 08, 2014 to December 07, 2014. During the
internship at General Banking Section of Uttara Bank Limited, Gulshan Brach. My project
was on General banking Activities of Uttara Bank Ltd, which has chosen with the consent of
honorable supervisor Mr. Riyashad Ahmed. Both the primary and secondary sources of data
had been used in preparing this report. The rationale behind this study is exploring
performance of Uttara Bank Limited which is reflected on its financial statement, general
banking activities, finding out the limitations and to provide some comments to improve its
banking business. The analysis includes the ratio analysis of UBL‟s past three years
performance results. The study also includes some information regarding general banking of
Uttara Bank Limited. The report is divided into the following parts- Introduction, Organization
Overview, About Job, Project and Conclusion. Project part is the main thing in report paper
which includes the following points: Summary, Description of the project, Analysis, Results
and discussion. Introduction and the organization overview section deals with some
elementary issues regarding the background. Further, it focuses on the services provided by
Uttara Bank Limited. Third section of this report is about job where I have done my internship
program for three months. It focuses on my work in this period.

An Analysis of Financial performance is the most crucial section which covers important
finding of the study. Key financial ratio analysis tools are to assess the financial performance
of the bank.

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INTRODUCTION

The study finds that almost all the performance measures show good performance on the part
of Uttara Bank Limited. Horizontal analysis of total operating expenses shows increasing
trend year by year. Horizontal analysis of net profit shows also increasing trend year by year.
UBL performs effectively Finance and Loans, Export Import Trade Finance, Corporate
Finance, Industrial Finance, Lease Finance, Commercial Loans, Project Finance, Retail Loans,
Mortgage Loans, Loan against Share and Securities etc. UBL provides the general banking
service to the customer such as different categories of savings schemes, foreign exchange
transactions, current account for business personnel etc. At the time of my work at the branch I
have understood the gap between the practical and theoretical knowledge. I have tried to cover
all aspects of Uttara Bank Limited to prepare and effective and useful report. There are a lot of
opportunities for further study to justify the reliability of the report. I have enjoyed every step
in conducting the study. These practical knowledge and experience will help me in my
practical life. I expect that this report will be accepted as a true picture of private banking
sector in Bangladesh.

ORGANIZATION OVERVIEW

History of Bank in Bangladesh

Bank system was practiced in Indian subcontinent by the Indian subcontinent merchants;
Goldsmith Moneylenders were the primary bankers. During the mughal period banking and
credit business was enchanted rapidly. In 1700 AD “Hindustan bank” was established as the
first joint stock bank. In 1784 “Bengal bank” and in 1786 “general bank of India “were
launched. Then both the banks absolved respectively in 1793 and 1832. During the early
period of nineteenth century the three banks “Bank of Bombay”, “Bank of Madras” and “Bank
of Bengal” merged to “Imperial bank of India”. In 1947 after the separation of Bengal, bank
business faced a severe disaster as non-Muslim bankers migrated to India. In order to rebuild
the bank business State bank of Pakistan was established as a central bank of Pakistan in 1948.
In 1971 Bangladesh became independent. After liberation „Bangladesh bank‟ was automated
with the assets and liabilities of former “State bank of Pakistan”. The rate of growth and
development of banking sector in the country was extremely slow until 1983 when the
government allowed to establish private banks and started denationalization process. Initially,

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the Uttara Bank in the same year and thereafter, the Pubali Bank, and the Rupali Bank in
1986.There were no domestic private commercial banks in Bangladesh until 1982 when the
Arab- Bangladesh Banks (AB Bank) commenced private commercial banking in the country.
Five more commercial banks came up in 1983 and initiated a moderate growth in banking
financial institutions. The banking system is composed of four state-owned commercial
banks, five specialized development banks, thirty private commercial Banks and nine foreign
commercial banks.

Overview of Uttara Bank Limited

Uttara Bank Limited was established in 1965 under the name “Eastern Banking Corporation
Limited” with the specific objective of accelerating trade and investment in the economically
depressed eastern wing of the than Pakistan.

After liberation of Bangladesh the Bank underwent a major change namely, it was
nationalized in March, 1972 and given the name “Uttara Bank”.

The Bank again in 1983 was denationalized and made a commercial bank in the private sector
under the name “Uttara Bank Limited”.

The Bank was incorporated as a banking company on June 29, 1983 and obtained business
commencement certificate on August 21, 1983.

The Bank floated shares in the year 1984.

UBL is one of the largest private banks in Bangladesh. It operates through 211 fully
computerized branches ensuring best possible and fastest services to its valued clients. The
bank has more than 600 foreign correspondents worldwide. Total number of employees
nearly 3,562. The Board of Directors consists of 13 members. The bank is headed by the
Managing Director who is the Chief Executive Officer. The Head Office is located at Bank‟s
own 18-storied building at Motijheel, the commercial center of the capital, Dhaka.

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Mission of UBL

Maintaining the maximum ethical standards community accountability praiseworthy of a

leading corporate citizen.

Continuously improving profitability, productivity and thereby enhancing shareholder value.

Creating and maintaining a set of hard working and efficient employees.

To extend financial assistance to poorer section of the people.

To achieve balance growth & equitable development.

Vision of UBL

To be leading commercial bank in the country and contribute maximum of the welfare for the
people of the country.

Prime objective is to deliver a quality that demonstrates a true reflection of its vision.

Excellence in banking.

To provide quality service to the customer.

To set high standard of integrity.

Bring total satisfaction to its clients, sponsors and employees.

Objectives of UBL

Objectives mean the end towards which an activity is aimed. An organization without
objective

is like a person who is wandering with no purpose. All the activities of an organization are due
to

its objectives and goals. For the attainment of those objectives, various types of financial

products and plans are developed. UBL has also some objectives, which are as follows:

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To ensure growth and development of the bank.

To use resources of the bank efficiently.

To get more deposits.

To participate in development of the country.

Paying special attention to the areas, which are under developed.

To develop SME‟S, foreign remittance, foreign trade.

To increase industrialization in the country.

To provide employment opportunities.

To make people more of mind to have saving habits.

To increase the services (backed by technology) by efficient employees.

To increase deposit mobilization.

For smooth functioning of foreign trade, establish large foreign network.

To expand the more credit facilities for the customers.

To maintain a good position in the competitive banking sectors in Bangladesh.

Technologies, Products & Services of UBL

UBL‟s products and services are regularly upgraded and realigned to fulfill customer
expectation. Their delivery standards are constantly monitored and improved to assure the
highest satisfaction. Their people are routinely up skilled and empowered to be able to
effectively responding to customer needs. The bank specially emphasizes on the service base
on technologies. Because the life became very fast and people want take service within sort
time. The consumer-banking sector of the Bank deals with number of tasks related to various
services. Transaction account, savings schemes or loan facilities also provide a rare blend of
conveniences and unparalleled secure quality services. The products that are recently being
offered by the bank are as follows –

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General Banking Services: Uttara Bank Limited provides all general banking services to its
customers through 211 fully computerized branches all over Bangladesh. It presents Savings
account and Current account for deposit and withdrawal of money as and when required. In
addition it provides other banking services of transfer of money through Pay order, Demand
draft etc. As a result of adapting the modern technology it‟s able to deliver quickest and most
accurate services to the clients.

Deposit Schemes: In addition to normal banking services Uttara Bank entertains special
depositors with enhanced interest rates. Special deposit schemes available with UBL are Fixed
Deposit Receipt account, Double Benefit Deposit scheme and Monthly Deposit scheme. Any
Bangladeshi staying at home or abroad may have a FDR account at Uttara Bank. The duration
of a FDR may be 3, 6, 12, 24 and 36 months. Interest rate is quite attractive which varies with
duration. Double Benefit Deposit Scheme doubles your deposit just in 8.5 years. Minimum
deposit required for the program is BDT 100,000. Monthly Deposit Scheme is another unique
opportunity for limited income people to save money for future. This scheme is of two
options, 5 years and 10 years of duration. Another selection to be made is for monthly
installment. You have 5 alternatives here, starting from BDT 500 through 10,000. Lucrative
interest rate is offered here These deposit schemes are targeted to definite groups of people
and in the mean time all these schemes have successfully hit their targets. Every day new
clients are getting in for a deposit scheme in Uttara Bank limited. In addition to the above,
Uttara Bank has introduced another deposit scheme, named Special Notice Deposit.
Government, semi Government organizations and individuals are entitled to open this scheme
in UBL. A 7 days‟ notice is required to withdraw money from this account. This scheme offers
a handsome interest as well.

International Banking: Any individual, firm or organization earning foreign exchange may
open a foreign currency account with Uttara Bank. Account holder is allowed to make
payments abroad in foreign currency and local payment in BDT. Account is also entitled to get
interest under some conditions. Uttara Bank maintains its accounts with a good number of
reputed banks in Europe, America, Australia and Far eastern countries. This is to settle any
trading issue or help remittance payment for expatriate Bangladeshis.

Loan and Credit Schemes: Uttara Bank distributes loans in different schemes. It provides
Consumer credits, Personal loans, Building repair loans and small business loans. UBL started
Uttara Consumer Credit scheme in 1996. This scheme provides financial assistance to people

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for purchasing Motor Bike, Motor car, Refrigerator, Air cooler, Personal computer and many
more consumer goods. Personal loan is available for salaried officers to meet their emergency
needs like marriage of self or dependent, medical expenses of self or dependent or educational
expenses. This program doesn‟t ask for a security even. Building repair loan is sanctioned for
those having buildings of their own. With reasonable interest rate UBL provides this loan to a
deserving candidate. People doing small businesses often suffer from inadequacy of fund.
They have almost no source of finance. UBL comes forward with sufficient fund for them.
Other Products and Services: This bank up date itself everyday with modern world and
provides modern banking services like online banking, Automated teller machine and card to
its clients. Uttara Bank offers locker service for its clients and all major branches are ready
with lockers at reasonable charge. Bank also provides several of service and promises to
upgrade their products and services for clients.

UBL Networks

Corporate Offices (Corporate Branch & Local Office ): 2

Regional Office: 12

Worldwide Affiliates: 600

Total Branches (Including Corporate Branch & Local Office ): 222

Authorized Dealer Branches: 38

Treasury & Dealing Room: 1

Training Institute: 1

Man Power: 3562

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DIFFERENT WINGS:

Name of the Division Affiliated Departments

Human Resources Division Personnel Department

Disciplinary Department
Test Key Department
Research & Planning Department
Risk Management Department

Central Accounts Division Accounts Department

Reconciliation Department

Credit Division Approval Department

Admin. & Monitoring Department
Lease Finance Department
Recovery Department

Internal Control &

Audit & Inspection Department
Compliance
Division Monitoring Department
Compliance Department

Banking Control & Common Anti-Money Laundering Department

Services Division Branches Operation Department
Business Promotion Department
Green Banking Department
Public Relations Department

Board & Share Division Board Department

Share Department

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 Correspondence Banking
International Division
Department
Remittance Department
Trade Services Department

Treasury Division Front Office (Dealing Room)

Back Office
Asset & Liability Management
Department

Establishment Division General Services Department

Transport Department
Stationery & Records Department
Engineering Department

Information &
MIS Department
Communication
Technology (lCT) Division Development & Support Department
Card Department

Corporate Banking Division Credit Marketing Department

Credit Business Development
Department

Regional Offices

Dhaka Central Zone Dhaka North Zone

Dhaka South Zone Narayanganj Zone
Mymensing Zone Chittagong Zone
Sylhet Zone Bogra Zone
Rajshahi Zone Khulna Zone
Barishal Zone Comilla Zone

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Highlights of Uttara Bank Limited

UTTARA BANK LIMITED

Highlights on the overall activities of the Bank for the year ended 2013 and 2012

Sl. Particulars 2013 2012 Change in

No. Taka Taka %
1 Paid-up-Capital 3,637,093,980 3,306,449,080 10

2 Total Capital (Teir -I+II) 10,203,847,785 9,300,594,902 10

3 Capital surplus/(Deficit) 2,008,647,785 1,781,934,902 13

4 Total Assets 132,385,487,918 123,790,627,973 7

5 Total Deposits 111,300,124,941 93,658,586,510 19

6 Total Loans & Advances 64,829,765,851 61,328,563,493 6

7 Total Contingent Liabilities 18,775,861,815 12,005,317,556 56

8 Advance/ Deposit Ratio 0.58:1 0.65:1 -11

Percentage of Classified Loans against total
9 8.04% 8.39% -4
Loans & Advances
10 Profit after tax & provision 1,310,370,278 1,236,356,336 6

11 Amount of classified loan during current year 3,476,300,000 3,393,000,000 2

12 Provision kept against classified loans 1,419,491,911 1,803,533,437 -21

13 Provision surplus /(deficit) 61,829,477 62,648,745 -1

14 Cost of Fund (%) 7.78% 7.23% 8

15 Interest earning Assets 106,790,364,097 98,677,618,328 8

16 Non-interest earning Assets 25,595,123,821 25,113,009,645 2

17 Return on Investment (ROI) % 9.72% 8.85% 10

18 Return on Assets (ROA)% 0.99% 1.0% -1

19 Income from Investment 4,447,142,890 3,716,097,423 20

20 Earning per Share (EPS) 3.60 3.40 6

21 Consolidated Earning per Share (CEPS) 3.63 3.42 6

22 Market value per share (DSE) 31.10 38.10 -18

23 Price Earning Ratio (Times) 8.63 10.19 -15

24 Net Assets value per share 29.36 29.63 -1

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ABOUT JOB:

Name & Description of The Job:

The name of the organization where I have done my internship was Uttara Bank Limited. My
job was at Gulshan Branch of the bank which is situated at Landmark Shopping Centre( 1st
Floor) ,12-14, Gulshan North C/A Gulshan-2, Dhaka, Bangladesh.

Job Description

As part of the Internship program of Bachelor of Business Administration course requirement,

I got the opportunity to join Uttara Bank Limited for the period of 3 months starting from
September 08, 2014 to December 07, 2014. During internship, one needs to obey the rules and
regulation of the organization, do the daily schedule activities, and any other the jobs assigned
by the supervisor. During the internship program, from September 08, 2014 to December 07,
2014; I worked in General Banking. In General Banking I had provided day to day services
like sort the data, written pay order, clearing ,transfer scroll, bank cash scroll, account
department ( arranging voucher), account opening (general) to the customers.

Some Aspects of My Job:

As it's a bank, each and every activities must be recorded and every work must be perfectly
done. I had do everything very carefully because I was told that whatever I do, is related with
money. All the activities were associated me with area of the study.

Observation and Recommendation:

During the internship period I have had some interesting observations. One of them is, before
and after doing each task every employee reports to the second officer(rank after the branch
manager) of the branch. Another observation is, the banks online facilities have just started
and they have lot of issues with this to be fixed.

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PROJECT:

Summery:

It is very important to have a practical application of the knowledge acquired from any
academic course of the study. Because only a lot of theoretical knowledge will become
fruitless if is not applied in the practical life. So I need proper application of my knowledge to
get some benefit from my theoretical knowledge to make it more fruitful. Such an application
can be possible through internship.

The internship program exercise a significant importance as it enables a student to familiar

with the practical business activities. The student work closing with the people of an
organization and learn about the function of that organization. These programs enable a
student to develop his/her analytical skills and scholastic aptitude.

As part of the Internship program of Bachelor of Business Administration course requirement,

I got opportunity of doing my internship in Uttara Bank Limited for the period of three months
starting from September 08, 2014 to December 07, 2014. During my intern period in the
Uttara Bank Limited, Gulshan Branch, I worked under general banking departments of the
bank. I worked under the supervision of Ms. Mahfuza huq (General Banking Incharge,
Gulshan Branch) and her assistance and guidance in completing this report.

My project was “An Analysis of Financial Performance e and General Banking Activities of
Uttara Bank Limited”, which was assigned by my internship supervisor Mr. Riyashad Ahmed,
Assistant Professor, BRAC Business School; BRAC University. I had chosen this topic A
company‟s financial statement analysis provides various financial information that investors
and creditors use to evaluate a company‟s financial performance.

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Objective:
The writing of this report contains two objectives: General objective and Specific objective.

General Objective: The general objective of this report is to complete the internship program.
As per requirement of BBA program of BRAC University, a student need to work in a
business organization for three months to acquire practical knowledge about real business
operations of a company.

Specific objectives: The specific objectives of this report are to analyze the financial
performance as well as general banking activities of Uttara Bank Limited. To complete this
report requires the internee to understand the facts that a real organization faces in the
practical world. Thus, specific objectives also include relating the theoretical knowledge to the
practical field. A student should be able to extract the gist of any events that might relate to
his/her context. This ability helps the students to increase their quality and effectiveness. Thus,
as a final word, specific objectives of this report include how to collect, analyze and interpret
data and draw relevant recommendations about any event which will prove the eligibility of an
BBA student.

Scope Of The Report:

This report contains the analysis of financial performance along with general banking
activities of Uttara Bank Ltd. The time frame is set on the last five fiscal years. The analysis
includes the horizontal (trend) analysis and ratio analysis on its own performance. Findings
and relevant recommendations are made based on that analysis. For avoiding the complexity,
selected performance variables are taken into consideration while analyze the performance.
Sole performance analysis of the branch is avoided due to unavailability of data.

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Methodology:

The study requires a systematic procedure from selection of the topic to preparation of the
final report. To perform the study, the data sources were to be identified and collected, to be
classified, analyzed, interpreted and presented in a systematic manner and key points were to
be found out. The overall process of methodology has been given as below.

 Selection of the topic: The topic of the study was assigned by the honorable
supervisors. While assigning the topic necessary recommendations and suggestions
were provided by my honorable supervisor to make this internship report a well
organized and perfect one.

 Identifying data sources: Essential data sources, both primary and secondary data
source, were identified that would be needed to carry on the study and complete
this report.

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Information collected to furnish this report is both from primary and secondary sources. But
mainly I have focused on secondary data.

Primary Sources of Data:

 Face to face conversation with the respective officers of the banks

 Practical experience gained by visiting different desks during internship
period
 Face to face conversation with the clients
 Take Interview

Secondary Sources of Data:

 Annual Reports of Uttara Bank Limited

 Different circular issued by the Head Office and Bangladesh Bank
 Relevant papers
 Official Records of Uttara Bank Limited
 Official web site of the Uttara Bank Ltd
 Prior research repo

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  Data Collection: Primary data were collected through direct and face to face
interview of the different personnel of the Uttara Bank Limited, Gulshan Branch.

 Classification, analysis, interpretations and presentation of data: Some

arithmetic and graphical tools are used in this report for analyzing the collected
data and to classifying those to interpret them in a clear and understandable
manner.

 Findings of the study: The collected data were pointed out and shown as findings.
Few recommendations are also made for improvement of the current situation.

 Final report preparation: On the basis of the suggestions of my honorable faculty

some corrections were made to present the paper in this form.

Limitations:
After completing the institutional experience, practical performance in real life becomes
difficult. So, my lack of experience greatly influenced in preparing this report.

Besides, I have to face some other limitations as follows:

 Interns report is one kind of research work. Research work requires huge
time. I had to keep that and mind and limit my research to some extent.
 The bank personnel and officials were sometimes very busy with their
occupational activities. Hence it was little bit difficult for them to help
within their high schedule.
 Unwilling to provide data because of confidentially.
 It is too much difficult to comment and suggest based on only the annual
report and information supplied by the organization.

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Horizontal Analysis:

A company's financial statements for a single accounting period can reveal important
information about its performance and financial health. But comparing the financial statements
of more than one period can provide better context and help identify any changes that may
signal strengths or weaknesses. We can compare financial statements for more than one period
by using horizontal analysis. Horizontal analysis, also called "trend analysis," is used to
discover trends in the earnings, assets and liabilities of a company over the course of several
years. With horizontal analysis, we compare the amount changes and the percent change of
each item in a financial statement for two consecutive periods. A financial statement showing
horizontal analysis of two consecutive periods is called a comparative financial statement.

Horizontal Analysis of Balance Sheet

In this horizontal analysis of Balance sheet, here all the particulars from the FY2009-FY2013
have shown by the amount, increase or decrease in the amount and also in the percentage. To
do so, I have assumed the FY2009 as a base year. For the purpose of calculation, here I have
shown all the data in million. The horizontal analysis of Balance Sheet is given bellow as a
table:

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 Horizontal Analysis of Balance Sheet

Increase or Increase or Increase or Increase or

Particulars 2013 (Decrease) During 2012 (Decrease) During 2011 (Decrease) During 2010 (Decrease) During 2009
Amount Percentage Amount Percentage Amount Percentage Amount Percentage
% % % %
PROPERTY
& ASSETS
Cash: 8,775.08 3,426.92 64.08 8,522.61 3,174.45 59.36 6,770.22 1,422.06 26.59 6,636.97 1,288.81 24.10 5,348.16
Balance with 1,419.78 1,133.82 396.50 693.73 407.77 142.60 5,366.01 5,080.05 1776.49 429.88 143.92 50.33 285.96
other Banks
and financial
institutions:
Investment: 45,749.47 23,246.99 103.31 41,998.23 19,495.75 86.64 22,894.75 392.27 1.74 18,591.13 -3,911.35 -17.38 22,502.48
Loans and 64,829.77 25,378.41 64.33 61,328.56 21,877.20 55.45 54,010.29 14,558.93 36.90 48,672.69 9,221.33 23.37 39,451.36
Advances: 0.00
Fixed assets 3,204.27 2,115.85 194.40 2,843.36 1,754.94 161.24 2,762.23 1,673.81 153.78 2,798.14 1,709.72 157.08 1,088.42
including land,
building
furniture‟s
Other Assets 7,456.27 7,175.61 2556.69 8,030.32 7,749.66 2761.23 5,520.85 5,240.19 1867.10 4,228.82 3,948.16 1406.74 280.66
Total Assets 132,110.04 60,164.04 83.62 123,693.80 51,747.80 71.93 97,417.93 25,471.93 35.40 81,451.82 9,505.82 13.21 71,946.00
LIABILITIES
AND
CAPITAL
Deposits and 110,989.82 51,602.56 86.89 93,541.40 34,154.14 57.51 72,152.38 12,765.12 21.49 65,868.03 6,480.77 10.91 59,387.26
other accounts:
Other 10,324.45 5,149.08 99.49 10,673.42 5,498.05 106.23 8,402.19 3,226.82 62.35 6,766.08 1,590.71 30.74 5,175.37
liabilities
Total 121,408.90 55,669.85 84.68 113,884.25 48,145.20 73.24 87,783.90 22,044.85 33.53 72,840.98 7,101.93 10.80 65,739.05
Liabilities
Total Share 10,701.10 4,494.15 72.41 9,809.54 3,602.59 58.04 9,634.03 3,427.08 55.21 8,610.84 2,403.89 38.73 6,206.95
Holders'
Equity
Total 132,110.04 60,164.04 83.62 123,693.80 51,747.80 71.93 97,417.93 25,471.93 35.40 81,541.82 9,595.82 13.34 71,946
Liabilities and
Share Holders'
Equity

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Graphical Presentation & Discussion of Cash:

Cash
Year (Taka in
Particulars Million)
2009 2010 2011 2012 2013 Average
Cash 5,348.16 5,348.16 5,348.16 8,522.61 8,775.08 6,668.43

Increase or
Decrease 1,288.81 1,422.06 3174.45 3426.92 2,328.06
Growth 24% 27% 59% 64% 44%

9,000.00
8,000.00
7,000.00
6,000.00
5,000.00
Cash
4,000.00
Increase or Decrease
3,000.00
2,000.00
1,000.00
0.00
2009 2010 2011 2012 2013

Figure: Cash (Amount in Million)

During the five years (2009-2013) of study the total growth of cash of Uttara Bank Limited
were on average 44%. Here, total cash ranges from 5,348.16 to 8,775.08 million maintaining
Tk. 6,668.43 million on an average per year. Moreover, significant changes have occurred in
cash amount in each year. As here, FY2009 is the base year, so the changes in amount have
been increased from FY2010 to FY2013. In FY2013 the highest increased in cash amount
have been occurred compared with the other FY but in FY 2009 the lowest increased in cash

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amount. Only remaining FY 2009, it has been clear that there is an increasing trend in the
changes of cash. So, with the cash or liquidity the bank will be able to make payments. In
addition, each FY the percentage change of cash is increasing. It is very clear that an
increasing upward trend is there from FY 2010 to FY 2013. Amount is increasing which
means current assets is also increasing in each of the year.

Graphical Presentation & Discussion of Investment:

Investment
Year (Taka in
Particulars Million)
2009 2010 2011 2012 2013 Average

Investment 22,502.48 18,591.13 22,894.75 41,998.23 45,749.47 30,347

Increase or
Decrease -3911.35 392.27 19,495.75 23,246.99 9,806
Growth -17% 2% 87% 103% 44%

50,000.00
45,000.00
40,000.00
35,000.00
30,000.00
25,000.00 Investment
20,000.00 Increase or Decrease
15,000.00
10,000.00
5,000.00
0.00
-5,000.00 2009 2010 2011 2012 2013

Figure: Investment (Amount in Million)

24
During the five years (2009-2013) of study the total growth of investment of Uttara Bank
Limited were on average 44%. Here, Investment ranges from 22,502.48 to 45,749.47 million
maintaining Tk. 30,347 million on an average per year. Moreover, significant changes have
occurred in investment in each year. We can see that in FY2010 we got negative investment
picture here. here, FY2009 is the base year, so the changes in investment have been increased
from FY2011 to FY2013. In FY2013 the highest increased in investment have been occurred
compared with the other FY but in FY 2010 the highest decreased in investment. In addition,
each FY the percentage change of investment is increasing only FY 2010 percentage changes
of investment slightly decrease. It is very clear that an increasing upward trend is there from
FY 2011 to FY 2013. So, in each year bank‟s investment is increasing which makes their
revenue more prosperous.

25
Graphical Presentation & Discussion of Loans & Advances:

Loans & Advances

Year (Taka in
Particulars Million)
Avera
2009 2010 2011 2012 2013 ge
Loans &
Advances 39,451.36 48,672.69 54,010.29 61,328.56 64,829.77 53,658.53

Increase or
Decrease 9221.33 14,558.93 21,877.20 25,378.41 17758.97
Growth 23% 37% 55% 64% 45%

70,000.00

60,000.00

50,000.00

40,000.00
Loans & Advances
30,000.00 Increase or Decrease
20,000.00

10,000.00

0.00
2009 2010 2011 2012 2013

Figure: Loans and Advances (Amount in Million)

During the five years (2009-2013) of study the total growth of loans and advances of
Uttara Bank Limited were on average 45%. Loans and advances ranges from 39,451.36

26
to 64,829.77 million maintaining Tk. 53,658.53 million on an average per year.
Moreover, significant changes have occurred in loans and advances in each year. As
here, FY2009 is the base year, so the changes in loans and advances have been increased
from FY2010 to FY2013. It has been clear that there is an increasing trend in the
changes of loans and advances. In FY2013 the highest increased in Loans and Advances
have been occurred compared with the other FY. In addition, each FY the percentage
change of loans and advances is increasing. It is very clear that an increasing upward
trend is there from FY 2010 to FY 2013. So, in each year bank‟s loans and advances is
increasing which makes their investment capability is adequate.

Graphical Presentation & Discussion of Fixed Assets:

Fixed Assets
Year (Taka in
Particulars Million)
2009 2010 2011 2012 2013 Average
Fixed
Assets 1,088.42 2,798.14 2,762.23 2,843.36 3,204.27 2,539.28
Increase or
Decrease 1709.72 1673.81 1,754.94 2,115.85 1813.58
Growth 157% 153% 161% 194% 166%

27
 3,500.00

3,000.00

2,500.00

2,000.00
Fixed Assets
1,500.00 Increase or Decrease
1,000.00

500.00

0.00
2009 2010 2011 2012 2013

Figure: Fixed Assets (Amount in Million)

During the five years (2009-2013) of study the total growth of fixed assets of Uttara
Bank Limited were on average 166%. Total cash ranges from 1,088.42 to 3,204.27
million maintaining Tk. 2,539.28 million on an average per year. Moreover, significant
changes have occurred in fixed assets in each year. As here, FY2009 is the base year, so
the changes in fixed assets have been increased from FY2010 to FY2013. In FY2013 the
highest increased in fixed assets have been occurred compared with the other FY but in
FY 2011, the changes in fixed assets slightly decline compared to FY 2010. Only
reaming FY 2011, it has been clear that there is an increasing trend in the changes of
fixed assets. In addition, the percentage change of fixed assets is increasing each year
but we observed a little decrease in 2010.

28
Graphical Presentation & Discussion of Total Assets:

Total Assets
Year (Taka in
Particulars Million)
Averag
2009 2010 2011 2012 2013 e
Total
Assets 71,946.00 81,451.82 97,417.93 123,693.80 132,110.04 101,323.92
Increase or
Decrease 9,505.82 25,471.93 51,747.80 60,164.04 36,722.40
Growth 13% 35% 72% 84% 51%

140,000.00

120,000.00

100,000.00

80,000.00
Total Assets
60,000.00 Increase or Decrease
40,000.00

20,000.00

0.00
2009 2010 2011 2012 2013

Figure: Total Assets (Amount in Million)

29
During the five years (2009-2013) of study the total growth of total assets of Uttara
Bank Limited were on average 51%. Total assets ranges from 71,946.00 to 132,110.04
million maintaining Tk. 101,323.92 million on an average per year. Moreover,
significant changes have occurred in total assets in each year. As here, FY2009 is the
base year, so the changes in total assets have been increased from FY2010 to FY2013. It
has been clear that there is an increasing trend in the changes of total assets. In FY2013
the highest increased in total assets have been occurred compared with the other FY. In
addition, each FY the percentage change of total assets is increasing. It is very clear that
an increasing upward trend is there from FY 2010 to FY 2013. So, in each year bank‟s
total assets is increasing which makes their loan repayment capability is adequate.

Graphical Presentation & Discussion of Total Liabilities:

Total Liabilities
Year (Taka in
Particulars Million)
Avera
2009 2010 2011 2012 2013 ge
Total
Liabilities 65,739.05 72,840.98 87,783.90 113,884.25 121,408.90 92,331.42
Increase or
Decrease 7,101.93 22,044.85 48,145.20 55,669.85 33,240.46
Growth 11% 34% 73% 85% 51%

30
 140,000.00

120,000.00

100,000.00

80,000.00
Total Liabilities
60,000.00 Increase or Decrease
40,000.00

20,000.00

0.00
2009 2010 2011 2012 2013

Figure: Total Liabilities (Amount in Million)

During the five years (2009-2013) of study the total growth of total liabilities of Uttara
Bank Limited were on average 51%. Total liabilities ranges from 65,739.05 to
121,408.90 million maintaining Tk. 92,331.42 million on an average per year. Moreover,
significant changes have occurred in total liabilities in each year. As here, FY2009 is the
base year, so the changes in total liabilities have been increased from FY2010 to
FY2013. It has been clear that there is an increasing trend in the changes of total
liabilities. In FY2013 the highest increased in total liabilities have been occurred
compared with the other FY. In addition, each FY the percentage change of total
liabilities is increasing. It is very clear that an increasing upward trend is there from FY
2010 to FY 2013. So, in each year bank‟s total liabilities is increasing which makes their
lending capability is adequate.

31
Graphical Presentation & Discussion of Total Share Holders’ Equity:

Total Shareholders' Equity

Year (Taka in
Particulars Million)
2009 2010 2011 2012 2013 Average
Total Share
Holders‟ 6,206.95 8,610.84 9,634.03 9,809.54 10,701.10 8,992.49
Equity
Increase or
Decrease 2,403.89 3,427.08 3,605.59 4,494.15 3,482.68
Growth 39% 55% 58% 72% 56%

12,000.00

10,000.00

8,000.00
Total Share Holders’
6,000.00
Equity Increase or
4,000.00 Decrease

2,000.00

0.00
2009 2010 2011 2012 2013

During the five years (2007-2011) of study the total growth of total share holders‟ equity
of Uttara Bank Limited were on average 56%. Here, total share holders‟ equity ranges
from 6,206.95 to 10,701.10 million maintaining Tk. 8,992.49 million on an average per
year. Moreover, significant changes have occurred in total share holders‟ equity in each
year. As here, FY2009 is the base year, so the changes in total share holders‟ equity have

32
been increased from FY2010 to FY2013. It has been clear that there is an increasing
trend in the changes of total share holders‟ equity. In FY2013 the highest increased in
total share holders‟ equity has been occurred compared with the other FY. In addition,
each FY the percentage change of total share holders‟ equity is increasing. It is very
clear that an increasing upward trend is there from FY 2010 to FY 2013. So, in each year
bank‟s total share holders‟ equity is increasing which makes their value of share holders‟
is adequate.

Graphical Presentation & Discussion of Total Liabilities & Share Holders’ Equity:

Total Liability & Shareholders' Equity

Particulars Year (Taka in Million)

Averag
2009 2010 2011 2012 2013 e
Total
Liabilities
& Share
Holders‟
Equity 71,946.00 81,541.82 97,417.93 123,693.80 132,110.04 101,341.92
Increase or
Decrease 9,595.82 25,471.93 51,747.80 60,164.04 36,744.90
Growth 13% 35% 72% 84% 51%

33
 140,000.00

120,000.00

100,000.00

80,000.00 Total Liabilities & Share

Holders’ Equity
60,000.00 Increase or Decrease
40,000.00

20,000.00

0.00
2009 2010 2011 2012 2013

Figure: Total Liabilities and Share Holders‟ Equity (Amount in Million)

During the five years (2009-2013) of study the total growth of total liabilities and share
holders‟ equity of Uttara Bank Limited were on average 51%.In, total share holders‟
equity ranges from 71,946.00 to 132,110.04 million maintaining Tk. 101,341.92 million
on an average per year. Moreover, significant changes have occurred in total liabilities
and share holders‟ equity in each year. As here, FY2009 is the base year, so the changes
in total liabilities and share holders‟ equity have been increased from FY2010 to
FY2013. It has been clear that there is an increasing trend in the changes of total
liabilities and share holders‟ equity. In FY2013 the highest increased in total liabilities
and share holders‟ equity has been occurred compared with the other FY. In addition,
each FY the percentage change of total share holders‟ equity is increasing. It is very
clear that an increasing upward trend is there from FY 2010 to FY 2013. So, in each year
bank‟s total liabilities and share holders‟ equity is increasing which makes their lending
capability as well as value of share holders‟ is adequate.

34
RATION ANALYSIS:
A bank‟s balance sheet and profit and loss account are valuable information sources for
identifying risk taking and assessing risk management effectiveness. Although the taka
amounts found on these statements provide valuable insights into the performance and
condition of a bank, financial analysts, bankers and bank supervisors typically use data from
them to develop financial ratios to evaluate bank performance. This is done to provide
perspective and facilitate making comparisons. There are literally hundreds useful financial
ratios we can use to evaluate bank performance. However, in most instances, directors only
need a few basic ratios to identify fundamental performance issues and help them formulate
questions regarding any underlying problems and asking management‟s plans for correcting
them. This section will discuss some selected ratios from various perspectives. From this
various perspective Ratio Analysis can be dividing into five categories. These five categories
are as follows:
1) Liquidity Ratio:
 Current Ratio
 Quick Ratio
 Working Capital
 Cash Conversion Cycle

2) Assets Management Ratio:

 Inventory Tunover Ratio
 Days In Inventory
 Total Assets Turnover Ratio
 Days Sale Outstanding
 Average Payment Period

3) Debt Management Ratio

 Debt Ratio
 Times Interest Earn

35
4) Profitability Ratio:

 Gross Profit Margin

 Operation Profit Margin
 Net Profit Margin
 Basic Earning Power
 Return on Assets
 Return on Equity

5) Stock Market Ratio:

 Earning Per Share

Following the instructions of the supervisor, some important ratios are analyzed and showed
below:

Advances to Deposits:
Advance to Deposit (ATD) ratio is the most commonly used liquidity ratios of a bank. A low
ratio of ATD indicates excess liquidity, and potentially low profits, compared to other banks. A
high ATD ratio presents the risk that some loans may have to be sold at a loss to meet
depositors‟ claims. The ATD ratios of Uttara Bank Limited are given bellow:

Advances
to
deposits
(Times)
Particulars Year
2009 2010 2011 2012 2013
Advances to deposits T 0.66 0.74 0.75 0.65 0.58

36
 Advances to deposits
0.8
0.7
0.6
0.5
0.4 Advances to deposits T
0.3
0.2
0.1
0
2009 2010 2011 2012 2013

The bank‟s ATD ratio increases from FY2010 to FY 2011 and in FY2012 and 2013 ATD ratio
slightly fall. The highest ATD ratio was in FY2011 which surely helps to higher risks of loan
losses but it also increases profits in that period.

Return on Assets:
Return on Assets (ROA) ratio is very important tools for measuring the profitability of a bank.
The greater ROA ratio is better for the bank. The ROA ratios of Uttara Bank Limited are given
bellow:

Return on Assets
Particulars Year
2009 2010 2011 2012 2013
Return on Assets 1.54% 1.91% 1.69% 1.00% 0.99%

37
 Return on Assets
2.00%
1.80%
1.60%
1.40%
1.20%
1.00% Return on Assets
0.80%
0.60%
0.40%
0.20%
0.00%
2009 2010 2011 2012 2013

The ROA ratio of UBL was increased in FY2010 (1.91%) and then it kept decreasing from FY
2011 (1.69%) which is bad sign for a bank. So, we can observe that ROA ratios were
fluctuating. The highest ROA ratio was 1.91% in FY2010 and lowest ROA ratio was 0.99% in
FY2013.

Return on Investment:

Return on
Investment
Particulars Year
2009 2010 2011 2012 2013
Return on
Investment 8.18% 11.87% 9.63% 8.85% 9.72%

38
 Return on Investment
12.00%

10.00%

8.00%

6.00%
Return on Investment
4.00%

2.00%

0.00%
2009 2010 2011 2012 2013

Return on investment (ROI) is very important for a bank's financial performance. Higher ROI is
better and we can see that ROI of Uttara bank is fluctuating and highest was in FY 2013 9.72%.

Return on Equity:
Return on Equity (ROE) ratio is also very important tools for measuring the profitability of a
bank. The greater ROE ratio is better for the bank. The ROE ratios of Uttara Bank Limited are
given bellow:

Return on Equity
Particulars Year
2009 2010 2011 2012 2013
Return on Equity 17.80% 18.02% 17.13% 12.60% 12.25%

39
 Return on Equity
20.00%
18.00%
16.00%
14.00%
12.00%
10.00% Return on Equity
8.00%
6.00%
4.00%
2.00%
0.00%
2009 2010 2011 2012 2013

The ROE ratio of UBL is in fluctuating trend from FY2009 which stared significantly decrease
from FY2011 (17.13%). The highest ROE ratio was 18.02% in FY2010 and lowest ROE ratio
was 12.25% in FY2013

Debt to Assets:
Debt to Assets (DTA) is important tools for measuring the leverage of a bank. The higher
portion of DTA, the greater is the degree of risk because creditors must be satisfied before in
the bankruptcy. The lower ratio of DTA provides to mitigate of protection for the supplier of
debt. The DTA ratios of Uttara Bank Limited are given bellow:

Debt to Asset
Particulars Year
2009 2010 2011 2012 2013
Debt to Asset 91% 89% 90% 92.00% 91.71%

40
 Debt to Asset
92%
92%
91%
91%
90%
90% Debt to Asset
89%
89%
88%
88%
2009 2010 2011 2012 2013

The DTA ratio of UBL is in fluctuating tren from but we can see that after FY2010 the ratio
kept rising till FY2012 then slight fall in FY2013. The highest DTA ratio was 92% in FY2012
and lowest DTA ratio was 89% in FY2010.

Debt to Equity:
Debt to Equity (DTE) ratio is used for measuring the financial performance of a bank because
usually the portion of debt of a bank is significantly higher than the portion of its equities. The
DTE ratios of Uttara Bank Limited are given bellow:

Debt to Equity
Particulars Year
2009 2010 2011 2012 2013
Debt to Equity 1059.00% 846.00% 911.00% 1160.95% 1134.54%

41
 Debt to Equity
1200.00%

1000.00%

800.00%

600.00% Debt to Equity

400.00%

200.00%

0.00%
2009 2010 2011 2012 2013

The DTE ratio of UBL went down in FY2010 then kept rising till FY2012 then again slightly
fall in. The highest DTE ratio was in FY2012 (1160.95%) and lowest DTE ratio was in FY
2010 (846%).

Earning Per Share:

Earnings per share (EPS) are the company's profit allocated to each outstanding share of
common stock. EPS serves as an indicator of a company's value for a market. The EPS ratios of
Uttara Bank Limited are given bellow:

EPS
Particulars Year
2009 2010 2011 2012 2013
EPS 4.61 6.48 4.99 3.74 3.6

42
 EPS

7
6
5
4
EPS
3
2
1
0
2009 2010 2011 2012 2013

EPS ratio of UBL was increasing till FY2010 (6.48Tk.) then it was decreasing to. The highest
EPS ratio was 142.56 taka per shre in FY2008 and the lowest EPS ratio was 6.48 taka per share
in FY2010.

P/E Ratio:
The Price Earning (P/E) Ratio of a stock is a measure of the price paid for a share relative to the
annual Earnings per Share. The price-to-earnings ratio is widely used valuation multiple used
for measuring the relative valuation of companies. A higher P/E ratio means that investors are
paying more for each unit of net income, so the stock is more expensive compared to one with a
lower P/E ratio. The P/E ratios of Uttara Bank Limited are given bellow:

P/E Ration
(Times)
Particulars Year
2009 2010 2011 2012 2013
P/E Ratio 20.96 25.64 15.59 10.19 8.63

43
 P/E Ratio
30

25

20

15 P/E Ratio
10

0
2009 2010 2011 2012 2013

P/E ratio of UBL was continuously decreasing from FY2011. The highest P/E ratio was 25.64
times in FY2010 and the lowest P/E ratio was 8.63 times in FY2013.

Market Value Par Share:

Market Value per Share (MVPS) is defined as the company's assessed market value divided by
the total number of shares held by stock owners in the company. The market value per share is a
financial metric that investors use to determine whether or not to purchase a stock. The MVPS
ratios of Uttara Bank Limited are given bellow:

Market Value Par share

Particulars Year
2009 2010 2011 2012 2013
Market Value Par
share 145.03 166.07 77.8 38.1 31.1

44
 Market Value Par share
180
160
140
120
100
80 Market Value Par share
60
40
20
0
2009 2010 2011 2012 2013

MVPS ratio of UBL continuously decreases from FY2011 (77.80 Tk.). The highest
MVPS ratio was 166.07 taka per share in FY2010 and the lowest MVPS ratio was 31.10
taka per share in FY2013.

FINDINGS
 UBL‟s property and assets is increasing year by year.
 Investment shows increasing trend.
 UBL‟s loans and advances is also increasing trend.
 Deposits and other account of UBL shows increasing trend.
 UBL‟s total liabilities and share holder‟s equity i s increasing year by year.
 UBL‟s operating expenses is increasing year by year .
 UBL‟s net interest income is increasing year by year.
 UBL‟s net profit is increasing year by year.
 Return on Assets (ROA) of UBL was not superior.
 UBL‟s market value per share is decreasing year by year.
 Insufficient usage of modern facility like communication technology.
 Little application of modern technology such as computer and internet.
 Poor condition of balance of payment.
 Lack of enthusiastic scheme for exporter and importer.

45
  Absence of attractive remuneration package.
 Network of corresponded banks is poor.
 Non-cooperation of government bodies.
 Lack of fair entrepreneur class.
 Knowledge of entrepreneur regarding foreign trade policy is limited.

RECOMMENDATIONS
There are few problems which need to be corrected by the management of the bank. Some
necessary steps are recommended below on the basis of collected data, observation, expert
officers‟ opinion and my knowledge and judgment.

 Horizontal analysis of total operating expense was increasing from FY2009 to FY2013
which was bad sign for a bank. The management of UBL should focus on slow down the
increasing rate of total operating expense over the year by cutting down unnecessary
costs.
 Horizontal analysis of total liabilities was increasing from FY2009 to FY2013 which was
not superior for a bank. The management of UBL should focus on slow down the
increasing rate of total liabilities.
 UBL should pay attention to reduce their operating expense to operating income ratio.
This margin is categorized as unsatisfactory from FY2009 to FY2013. This ratio was
increasing year by year which is bad sign for a bank. The bank may decrease this ratio
either by increasing operating income by attracting more clients to invest or decreasing
operating expense by making an optimum portfolio of investment which will reduce the
overall expenses.
 Return on Assets (ROA) of UBL was not superior. ROA ratio was decreasing FY2010 to
FY2013. UBL should pay attention to increase this ratio because higher ROA ratio
indicated bank is running well.
 Introducing new marketing strategy to attract more clients, this will increase the total
export and import business.
 Attractive incentive package for the exporter, this will help to increase the export and
accordingly it will diminish the balance of payment gap of UBL.

46
 Effective training is very much essential for the foreign exchange officials so that they
can easily deal with their valuable customers.
 Online Banking system is very important to maintain secure foreign exchange operation
for UBL.
 Introduction of various incentives to increase remittance.
 Foreign exchange operation is more dynamic, less time-consuming and challenging job
for a bank. Uttara Bank Ltd. should pay more attention to cope up with modern facility to
face the challenges.
 In our country, financial problem is a great constraint to foreign trade and UBL is very
mush conservative to post shipment finance. If the Bank takes a bit liberal position the
exporter will easily come out from financial constraint.

47
CONCLUSION:
The finding in this report cannot be taken as a conclusion and it will be wrong to end here with
such results. Because this study actually gives a simple picture and leaves room for further study
in different areas of banking functions such as product of banks, productivity analysis, Data
Environment analysis and more.

Banking sector is the chief financial intermediary in a country. It is a very challenging institution
and in the age of globalization and free trade, the process and the system of running a Bank is
changing. UBL already managed itself with this changing environment. The company strategies
are clear and concise. The return is attractive for the bank. If the Bank goes this way, one can
expect that in near future Uttara Bank Limited may become one of the top performers.

From the discussion it can be concluded that Uttara Bank Limited playing an important role in
the economic development of the country and it has a prospect future to have a very good
position in the Banking sector. To do this it should increase promotional activities to reach to the
people easily as well as Uttara Bank Limited focus on major banking activities that may increase
the bank ranking and financial performance position comparing with other banks. Such
information assists the management of this bank in creating appropriate financial strategies for
attaining the required planned financial performance.

The study provides bank managers with understanding of activities that would improve their
bank‟s financial performance and foreign exchange operation. The results of this study imply
that it might be necessary for the management of Uttara Bank Limited to take all required
decisions by consistently observing key financial ratios, horizontal (trend) analysis among
various elements and foreign exchange operation to enhance their position in the banking
industry.

48
BIBLIOGRAPHY

 www.uttarabank-bd.com/
 http://www.dsebd.org/displayCompany.php?name=UTTARABANK
 http://en.wikipedia.org/wiki/Uttara_Bank
 http://bankinfobd.com/banks/45/Uttara_Bank
 http://bdloan.net/uttara-bank-ltd-job-circular-2014.html
 http://www.cse.com.bd/companyDetails.php?scriptCode=UTTARABANK

49
APPENDIX

50
 Highlights on the overall activities of the Bank for the year ended 2010 and 2009

Sl. Particulars 2010 2009 Change in

No. Taka Taka %

1 Paid-up-Capital 2,395,977,600 1,597,318,400 50

2 Total Capital (Teir -I+II) 7,920,588,892 5,829,047,757 36

3 Capital surplus/(Deficit) 1,633,188,892 2,140,806,757 -24

4 Total Assets 81,451,822,803 71,945,998,489 13

5 Total Deposits 65,868,030,947 59,387,263,182 11

6 Total Loans & Advances 48,672,687,127 39,451,355,571 23

7 Total Contingent Liabilities 9,377,588,319 8,560,482,934 10

8 Advance/ Deposit Ratio 0.74:1 0.66:1 12

9 Percentage of Classified Loans against total 5.50% 7.20% -24

Loans & Advances

10 Profit after tax & provision 1,551,880,726 1,105,226,569 40

11 Amount of classified loan during current year 925,300,000 1,038,900,000 -11

12 Provision kept against classified loans 391,983,437 475,526,169 -18

13 Provision surplus /(deficit) 28,072,927 20,443,169 37

14 Cost of Fund (%) 4.74% 4.94% -4

15 Interest earning Assets 65,036,584,230 59,741,714,627 9

51
16 Non-interest earning Assets 16,415,238,573 12,204,283,862 35

17 Return on Investment (ROI) % 11.87% 8.18% 45

18 Return on Assets (ROA)% 1.91% 1.54% 24

19 Income from Investment 2,206,593,581 1,840,039,983 20

20.a Earning per Share (before split) 64.77 69.19 -6

20.b Earning per Share (after split) 6.48 4.61 41

21 Net income per Share (after split) 6.48 4.61 41

22 Market value per share (before split) 1660.75 1450.25 15

23 Price Earning Ratio (Times) 25.64 20.96 22

24 Net Assets value per share (after split) 35.94 38.86 -8

52
UTTARA BANK LIMITED

Highlights on the overall activities of the Bank for the year ended 2012 and 2011

Sl. Particulars 2012 2011 Change in

No. Taka Taka %

1 Paid-up-Capital 3,306,449,088 2,875,173,120 15

2 Total Capital (Teir -I+II) 9,300,594,902 9,117,416,771 2

3 Capital surplus/(Deficit) 1,781,934,902 2,251,816,771 -21

4 Total Assets 123,790,627,973 97,417,927,797 27

5 Total Deposits 93,658,586,510 72,152,375,394 30

6 Total Loans & Advances 61,328,563,493 54,010,287,476 14

7 Total Contingent Liabilities 12,005,317,556 9,860,040,453 22

8 Advance/ Deposit Ratio 0.65:1 0.75:1 12

Percentage of Classified Loans against total Loans &

9
Advances 8.39% 5.22% 61

10 Profit after tax & provision 1,236,356,336 1,650,339,616 -25

11 Amount of classified loan during current year 3,393,000,000 814,914,000 316

12 Provision kept against classified loans 1,803,533,437 1,091,983,437 65

13 Provision surplus /(deficit) 62,648,745 29,533,837 112

14 Cost of Fund (%) 7.23% 6.32% 14

15 Interest earning Assets 98,677,618,328 79,811,603,347 24

16 Non-interest earning Assets 25,113,009,645 17,606,324,450 43

17 Return on Investment (ROI) % 8.85% 9.63% -8

18 Return on Assets (ROA)% 1.00% 1.69% -41

19 Income from Investment 3,716,097,423 2,204,265,402 69

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20 Earning per Share 3.74 4.99 -25

21 Consolidated Earning per Share (SPS) 3.76 5.01 -25

22 Market value per share 38.10 77.80 -51

23 Price Earning Ratio (Times) 10.19 15.59 -35

24 Net Assets value per share 29.63 29.13 2

UTTARA BANK LIMITED

Highlights on the overall activities of the Bank for the year ended 2013 and 2012

Sl. Particulars 2013 2012 Change in

No. Taka Taka %
1 Paid-up-Capital 3,637,093,980 3,306,449,080 10

2 Total Capital (Teir -I+II) 10,203,847,785 9,300,594,902 10

3 Capital surplus/(Deficit) 2,008,647,785 1,781,934,902 13

4 Total Assets 132,385,487,918 123,790,627,973 7

5 Total Deposits 111,300,124,941 93,658,586,510 19

6 Total Loans & Advances 64,829,765,851 61,328,563,493 6

7 Total Contingent Liabilities 18,775,861,815 12,005,317,556 56

8 Advance/ Deposit Ratio 0.58:1 0.65:1 -11

Percentage of Classified Loans against total
9 8.04% 8.39% -4
Loans & Advances
10 Profit after tax & provision 1,310,370,278 1,236,356,336 6

11 Amount of classified loan during current year 3,476,300,000 3,393,000,000 2

12 Provision kept against classified loans 1,419,491,911 1,803,533,437 -21

13 Provision surplus /(deficit) 61,829,477 62,648,745 -1

14 Cost of Fund (%) 7.78% 7.23% 8

15 Interest earning Assets 106,790,364,097 98,677,618,328 8

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16 Non-interest earning Assets 25,595,123,821 25,113,009,645 2

17 Return on Investment (ROI) % 9.72% 8.85% 10

18 Return on Assets (ROA)% 0.99% 1.0% -1

19 Income from Investment 4,447,142,890 3,716,097,423 20

20 Earning per Share (EPS) 3.60 3.40 6

21 Consolidated Earning per Share (CEPS) 3.63 3.42 6

22 Market value per share (DSE) 31.10 38.10 -18

23 Price Earning Ratio (Times) 8.63 10.19 -15

24 Net Assets value per share 29.36 29.63 -1

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