Difference in balance sheet items between Eastern Bank and Nitol insurance company Limited

Cash and balances

EBL has different items of cash .They have cash in hand including local currency and foreign currency. Their local currency reserved in Bank and with their subsidiaries. According to central bank policy, They maintain statutory liquidity ration (SLR) of minimum 19% based on weekly average demand and time liabilities of immediate preceding two months.EBL also maintain a CRR of minimum 5.5% on daily basis based on weekly average demand and time liabilities of immediate preceding two months. In current deposit accounts with Agrani bank,Janata Bank,Bangladesh Krishi Bank,The Trust Bank limited ,AB Bank limited,Trust bank ltd ,Sonali bank,National bank,The citybank,Rupali bank,Islami bank ltd.Pubali bank,United commercialbank,Dutch bangla bank,BRAC bank,NCC bank. In special notice deposit accounts with Sonali bank ltd. Janata bank ltd. Agrani bank ltd. Bank Asia ltd. Basic bank ltd. Banglades krishi bank ltd.

Balance Outside in Bangladesh The Bank of Tokyo Mitsubishi. Tokyo Standard Charted Bank Nepal Bangladesh Bank limited HSBC, New York etc

On the other hand, Nitol insurance company has different cash items of.they have cash in hand, cash at different banks and fixed deposit with different banks like :

Agrani bank Janata Bank Rupali bank Sonali bank Brac United commercial

Money at call and short notice

With banking companies Jamuna Bank Limited Prime Bank Limited

With Non Banking Financial Institution People Leasing And Financial Service Limited Lanka Bangla Finance limited.

On the other hand, Nitol insurance company has not any Money at call and short notice

Investment
Government (investment in government securities) Treasury bills Bonds : 5 year treasury bonds and 10 year treasury bonds Prize bonds

They have also investment in Debentures ( investment corporations in Bangladesh ( ICB)and house building finance corporation (HBFC) Corporate bonds (Orascom bonds and trust bank subordinated bond). Ordinary shares ( quoted and unquoted) Preference shares

On the other hand, the basic investment policy of this insurance company is that they mainly invest on share market. They have share on: Grameen phone Lanka bangla Modern cement Dhaka bank ltd. Pubali bank ltd.

Fixed Assets
Fixed assets of EBLS are Freehold land development, buildings on freehold land, machinery and equipment, computer and network equipments, furnitures and fixtures, vehicles, leased assets, software etc. On the other hand, Furnitures & fixtures, office equipment, computers, air-conditioner, refrigerator, telephone installation, office car, electrical equipment, office space.

Balance of funds and accounts

Nitol insurance company basically generate fund from Fire Insurance business Marine Insurance Business Miscellaneous Business

The Basic Difference Between two companies that one is Bank thats their business is mainly on deposit and other account Current deposit Saving bank deposit Fixed deposit. Bearer certificates deposit

They basically invest on share and bond market in huge capital on generates business- Fire insurance, Motor insurance, and Marine insurance. EBL has Balance in Bangladesh payable on demand in One bank limited,Citibank na,Dutchbangla bank ltd,Gps finance ltd.,Premier bank ltd Pubali bank ltd,IPDCBD ltd,Habib bank ltd,Janata bank ltd,sonali bank bank ltd,State bank ltd,HSBC. Term borrowings on Sonali bank ltd,Uttarabank ltd.Bangladesh commerce bank ltd,United commercialbank,Trust,Jamuna,Citibankbank ltd.,Peoples leasing and financial services Balance outside in Bangladesh: non interest bearing Standard chartered bank, new York Citibank NA Mashreqbank Jp morgan chase jp morgan chase bank ,Frankfurt Wachovia bank Habib American Standard chartered new York OBU

% of holdings shares
Slab wise list: 2010 Shareholders group directors General public Financial institutions 2011 Shareholders group directors General public Financial institutions Nitol hasShareholders group Sponsors & directors General public No. of shares 7,560,000 11,340,000 ( %) of shareholding 40% 60%

No. of shares 10,026,490 253,514,160 28,540,490

( %) of shareholding 3.43% 86.80% 9.77%

No. of shares 30,480,330 377,809,189 44,436,248

( %) of shareholding 6.73% 83.45% 9.82%

Borrowings
EBL borrows fund from different banks, financial institutions and agents it includes balance in Bangladesh bank and outside of the Bangladesh. As a bank they have different deposits accounts through they full fill their fund requirements. On the other hand, Nitol also borrow from different banks and financial institutions.

Nitol insurance company

Comparison between 2010 and 2011 balance sheet items
Issued, subscribed and paid up capital
In 2011, Issued, subscribed and paid up capital was 189000000. In 2010, it was 168000000. So we can say that Issued subscribed and paid up capital increased by 12.5% in 2011.

Paid Up Capital (BDT Million)

195 190 185 180 175 170 165 160 155

12.5%

Paid Up Capital (in Million)

168

2010

2011

Reserve
Reserve for exceptional losses, general reserve and profit and loss appropriation was 97219242 in 2010. On the other hand, it was increased by 105761783in 2011.So, total reserve increased by 8542541 or 8.786882951% in 2011.

Reserve (in Million)

108 106 104 102 100 98 96 94 92 2010 2011

8.79%

105.76

189

Reserve (in Million)

97.22

Balance of funds
Balance of fire insurance, Marin insurance, motor insurance and miscellaneous insurance was 109086161in 2010. In contrast, it was increased by 107348089 in 2011. So balance of funds decreased by 1738072 or 1.593302014%.

Balance of funds (in Million)

109.5 109 108.5 108 107.5 107 106.5 106 2010 2011

1.59% 109.09 107.35

Balance of funds (in Million)

Premium
Premium deposit was 8262650 in 2010. On the other hand, premium deposit was 9885507 in 2011. So we can conclude that premium deposit increased by 1622857 or 19.64087793% in 2011.

Premium (in Million)

10.5 10 9.5

19.64%

9.89

9 8.5

Premium (in Million)

7.5 7

2010

8.26

2011

Dividend
Total dividend provided by the company was 21000000 in 2010. In contrast, it was 24570000 in 2010. So dividend increased by 3570000 or 17% in 2011.

Dividend (in Million)

25 24 23 22 21 20 19 2010 2011

17%

24.57

Dividend (in Million)

Liabilities and provision

The total amount of liability in 2010 was 32391729 in which includes outstanding claims, and amount due to other persons or bodies carrying on insurance business. It was reached 48390997 in 2011. So, liabilities and provision increased by 15999268 or 49.39306574% in

2011.

60 50 40

21

Liabilities & Provision (in Million)

49.39%

48.39

30

10 0

32.39

20

Liabilities & Provision (in Million)

2010

2011

Sundry creditors
The total amount of sundry creditors was 68760614 in 2010 in which includes outstanding and accruing express. It was 69294303 in 2011. So, sundry creditors increased by 533689 or 0.776155082% in 2011.

Sundry Creditors (in Million)

69.4 69.2

0.78%

69.29

69 68.8 68.6 68.4 2010

Sundry Creditors (in Million)

68.76

2011

Investment
Companys total investment in 2010 was 13344843 in which includes national investment of 900000 and shares of 4344843.on the other hand, in 2011, total investment was 12094843 in which contains national investment of 9000000 and shares 3094843. So we can conclude that investment decreased by 1250000 or 9.366914245% in 2011.

Investment (in Million)

13.6 13.4 13.2 13 12.8 12.6 12.4 12.2 12 11.8 11.6 11.4

13.34

9.37% 12.09

Investment (in Million)

2010

2011

Interest, dividends and rent receivables

The total amount of interest, dividends and rent receivables was 11397491 in 2010. But in 2011, it was 13834125 in 2011.So we can say that interest, dividends and rent receivables increased by 2445634 or 21.45765239% in 2011.

Interest, Dividend & Rent Receivables (in Million)

16 14 12 10 8 6 4 2 0

21.46%

13.83

11.4

Interest, Dividend & Rent Receivables (in Million)

2010

2011

Sundry debtors
The total amount of sundry debtors was 136091605 in 2010. In 2011, it was 155657109. Sundry debtors increased by 19565504 or 14.37671633% in 2011.

Sundry Debtors (BDT Million)

160 155 150 145 140 135 130 125 2010 2011

14.38%

155.66

Sundry Debtors (BDT Million)

136.09

Cash and bank balance

Cash and bank balance amount was 263174567 in 2010 in which includes cash at banks, fixed deposit with banks and cash in hand, it was 297762263 in 2011.So, cash and bank balance increased by 34587696 or 13.14249184% in 2011.

Cash and bank balance (BDT Million)

310 300 290

13.14%

297.76

280 270

Cash and bank balance (BDT Million)

250 240

2010

263.17

260

2011

Fixed assets
The total amount of fixed assets was 79652196 in 2010.But in 2011, it was 73312802. So fixed Assets decreased by 6339394 or 7.958843972% in 2011.

Fixed Assets (BDT Million)

81 80 79 78 77 76 75 74 73 72 71 70

79.65

7.96% 73.31

Fixed Assets (BDT Million)

2010

2011

Comparison between 2010 and 2011 balance sheet items

Assets
Cash
The Cash amount was 3681327496 in 2010 in which includes cash at banks, fixed deposit with banks and cash in hand; it was 6022765771 in 2011.so, cash and bank balance increased by 2341438275 or 60.60309637% in 20

Cash (BDT Million)

7000 6000 5000

60.60%

6022.77

4000 3000 2000 1000 0 2010

Cash (BDT Million)

3681.33

2011

Balance with other banks and financial institution:

In 2010, Balance with other banks and financial institution was 4731742233. In 2011, it was 3682144044. The amount of Balance with other banks and financial institution decreased by 22.18206608 %

Balance with other banks and financial institution Fixed Assets (BDT Million)
5000 4000 3000 2000 1000 0

22.18% 4731.74 3682.14

Balance with other banks and financial institution Fixed Assets (BDT Million)

2010

2011

Investments
In 2010, EBLs investment amount was 9827197073. In 2011, it was reached 16910527988. So, we can say that investment Increased by 72.07885274% in 2011.

Investments (BDT Million)

18000 16000 14000 10000 6000 4000 2000 0 2010 2011 12000 8000

72.08%

16910.53

9827.20

Investments (BDT Million)

Loans and advances

In 2010, the amount of loans and advances was 58607085693.in 2011, it was 81057922762.So, loans and advances Increased by 38.30737667% in 2011.

Loans and advances (BDT Million)

90000 80000 70000 50000 40000 30000 20000 10000 0 2010 2011 60000

38.31%

81057.92

Fixed assets
The total amount of fixed assets was 3626121162 in 2010.But in 2011, it was 4465566721. So, fixed Assets decreased by 839445559 or 23.14995891% in 2011.

5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0

58607.09

Loans and advances (BDT Million)

Fixed assets (BDT Million)

23.15%

3626.12

4465.57

Fixed assets (BDT Million)

2010

2011

Liabilities and shareholders equity

Borrowings from other banks, financial institutions and agents
In 2010, the amount of Borrowings from other banks, financial institutions and agents Were 9,257,404,358 in 2010. On the other hand, it reached at 21,652,484,276 in 2011. So, Borrowings from other banks, financial institutions and agents increased by 133.8936859%

Borrowings from other banks, financial institutions (BDT Million)

25000 20000 15000

133.89%

21652.48

10000 5000 0 2010

9257.4

Borrowings from other banks, financial institutions (BDT Million)

2011

Deposit and other accounts

In 2010, the amount of Deposit and other accounts were 56105405810. In contrast 2011, it was reached at 75203463872.So, the amount of Deposit and other accounts were increased by 34.03960418% in 2010.

Deposit and other accounts (BDT Million)

80000 70000 50000 30000 20000 10000 0 2010 2011 60000

34.04%

56105.41

40000

75203.46

Deposit and other accounts (BDT Million)

Total Shareholders Equity

In 2010, the amount of Total Shareholders Equity was 12257444389. On the other hand, it was 14592202592. We can say that the amount of Total Shareholders Equity 19.047675534% in 2011.

Total Shareholders Equity (BDT Million)

15000 14500 14000 13500 13000 12500 12000 11500 11000 2010 2011

19.05%

Total Liabilities
In 2010, the amount of total liabilities was 70273534050 in 2010. In contrast 2011, it was 102972118140.So, the amount of total liabilities 46.5304392922% in 2011.

Total Liabilities (BDT Million)

120000

12257.44

46.53%
100000 80000

40000 20000 0

2010

70273.53

60000

102972.12

14592.2

Total Shareholders Equity (BDT Million)

Total Liabilities (BDT Million)

2011