Performance Analysis of Uttara Bank Limited

Performance Evaluation
of
Uttrara Bank Limited
Submitted by
WWW.ASSIGNMENP!IN."!M
###.A$$i%nmentPoint.com
1. Introduction of t&e 'e(ort
).* Introduction
Bachelor of Business Administration (BBA) is a professional course and the internship program is an important
part of Bachelor of Business Administration (BBA). Internship creates a unique opportunity for the student to
apply their theoretical knowledge into practice and gain valuable real world business eperience. !uring the
internship period" student can also reali#e eisting business condition apart from having opportunities to solve the
problem using various analytical tools.
Banking is now an essential part of our economic system. $odern trade and commerce would almost be
impossible without the availability of suitable banking service. %he health of the economy is closely related to the
soundness of its banking system. $odern banks play an important part in promoting economic development of a
country. Banks provide necessary funds for eecuting various programmers underway in the process of economic
development. %hey collect savings of large masses of people scattered through out the country" which in the
absence of banks would have remained ideal and unproductive. %hese scattered amounts are collected" pooled
together and made available to commerce and industry for meeting the requirements. &conomy of Bangladesh is in
the group of world's most underdeveloped economies. (ne of the reasons may be its underdeveloped banking
system. )overnment as well as different international organi#ations have also identified that underdeveloped
banking system causes some obstacles to the process of economic development. *o they have highly recommended
for reforming financial sector. *ince 1++," Bangladesh )overnment has taken a lot of financial sector reform
measurements for making financial sector as well as banking sector more transparent" and formulation and
implementations of these reform activities has also been participated by different international organi#ation like
-orld Bank" I$. etc.
As a part of the internship /rogram of BBA course requirement" I was assigned to do my internship in 0ttara bank
Bank 1imited for a period of three months (12th3ovember" 4,1, to 12
th
.ebruary" and 4,1,).
).) Back%round of t&e Study
&conomic history shows that development has started everywhere with the banking system and its contribution
towards financial development of a country is highest in the initial stage. As a mandatory requirement of the
Bachelor of Business Administration (BBA) program" I was assigned to do my internship in 0ttara Bank 1imited
for a period of three months. .rom practical knowledge" we will be able to know real life situations and start a
career with some practical eperience. 0ttara Bank 1imited (0B1) is banking company incorporated in the
/eople's 5epublic of Bangladesh with limited liability.
%his report" 6/erformance &valuation (f 0ttara Bank 1imited7" has been prepared to fulfill the partial requirement
of BBA program as a mean of Internship /rogram. -hile preparing this report" I had a great opportunity to have an
in depth knowledge of all the banking activities of 0ttara Bank ltd.
).+ Si%nificance of t&e 'e(ort
&ducation will be the most effective when theory and practice blends. %heoretical knowledge gets its perfection
with practical application. And the internship is designed to bridge the gap between the theoretical knowledge and
real application. -e all know that there is no alternative of practical knowledge which is more beneficial than
theoretical aspects. %he prime reason of this study is to become familiar with the practical business world and to
attain practical knowledge about the overall Banking and 8orporate world" which is so much essential for each and
every student to meet the etreme growing challenges in 9ob market.
)., Sco(e of t&e re(ort
In order to maintain the speed of development now banks must compete in the market place both with local
institution as well as foreign ones. %he presentation of the organi#ational structure and policy of 0ttara Bank
1imited and investigating the strategies applies by it provide the scope of this report.
An infrastructure of the organi#ation has been detailed and looks into the future. %he scope of this report is limited
to the overall description of the company" its services" its position in the industry" its financial performance analysis
the practical progress of its operation. %he scope of the study is limited to organi#ational setup" functions and
performances:
5ecent performance of 0B1 in terms of deposit" investment and foreign echange.
%o analy#e the banks current financial flows performed by 0B1.
%o obtain practical eperience about general banking activities by involving such type of program.
%o build professional carrier in the banking sectors as well as any credit providing institution.
).- !b.ective$ of t&e 'e(ort
).-.). General !b.ective
%he prime ob9ective of the report is to analy#e 6.inancial /erformance of 0ttara Bank 1imited
).-.+. S(ecific !b.ective
%he following aspects can be listed as the specific ob9ectives for this practical orientation in 0ttara Bank 1imited:
%o identify and assess the present financial performance of 0ttara Bank 1imited
%o calculate the financial ratios and identify the areas of concern.
%o understand the implications in analy#ing and interpreting the financial ratios.
%o compare the financial situation of 0ttara Bank 1imited with the two other banks; I.I8 Bank 1imited and
pubali Bank 1imited.
%o identify the findings and raise possible recommendations for improving the performance of 0ttara Bank
1imited
)./ Met&odolo%y
)./.). 'e$earc& 0e$i%n
%his report is a descriptive type of research" which briefly reveals the overall activities performed by 0ttara Bank
1td. It has also been administered by collecting secondary data. Annual ports of 0B1 were the ma9or secondary
data sources in this regard. 5atio analysis and trend analysis have also been used as ma9or tools for the financial
performance analysis. %he study is performed based on the information etracted from different sources collected
by using a specific methodology. %his report is analytical in nature
)./.+. Source$ of data1
Secondary data1
A. Annual 5eport of 0B1.
B. !ifferent tet book and 9ournals.
8. <arious reports and articles related to study.
!. *ome of my course elements as related to this report.
&. -eb base support from the internet
)./.,. 0ata "ollection Procedure and In$trument$1
.or the 6.inancial /erformance &valuation of 0ttara Bank 1imited7 I mainly used *econdary data. Besides this I
also collect some information by taking epert opinion from the officers and direct observation while I doing the
internship program at the bank.
)./.-. In$trument$ U$ed 2or Analy$i$1
A. 5atio Analysis
B. %rend Analysis
'atio Analy$i$1
%he quantitative (such as ratio analysis) tools are used to analy#e the gathered data and different types of computer
software are used for reporting the gathered information from the analysis such as; $icrosoft -ord" $icrosoft
&cel etc. 5atio can be classified into four broad groups;
1) 1iquidity 5atio.
4) Activity 5atio.
=) !ebt 5atio.
2) /rofitability 5atio.
rend analy$i$1
It is really important to analysis trends in ratios as well as their absolute levels. %his analysis informs us whether a
company's financial condition improving or deteriorating
).3 Limitation
(bserving and analy#ing the broad performance of a bank and one of its branches are not that easy. $oreover due
to obvious reasons of scrutiny and confidentiality" the bank personnel usually don't want to disclose all the
statistical information about their organi#ation. >owever the some of the limitations I have face while preparing
this 5eport are listed as follows:
ime Limitation1 %o complete the study" time was limited by three months. It was really very short time
to know details about an organi#ation like 0ttara Bank 1td
Inade4uate 0ata1 1ack of available information about the business operations of 0ttar Bank 1td. Because
of the unwillingness of the busy key persons" necessary data collection became hard. %he employees are
etremely busy to perform their duty.
Lack of 'ecord1 1arge;scale research was not possible due to constrain and restrictions posed by the
organi#ation. 0navailability of sufficient written documents as required making a comprehensive study. In
many cases up;to;date information was not available.
Lack of e5(erience$1 1ack of eperiences has acted as constraints in the way of meticulous eploration on
the topic. Being a member of the organi#ation? it was not possible on my part to epress some of the
sensitive issues. 1ack of adequate knowledge about eport and import business of any organi#ation.
"om(any (rofile
"om(any (rofile
Part1 *+
+. !'GANI6AI!N7S !8E'8IEW
+.) !vervie# of UBL

0ttara Bank formed in 1+@4 as a scheduled bank with assets and liabilities of the &astern Banking 8orporation set
up in &ast /akistan on 4A Banuary 1+CD. It started banking business 44 Bune 1+CD and became a member of the
!haka 8learing >ouse on 1@ *eptember 1+CD. At the time of establishment" &astern Banking 8orporation had a
paid up capital of %o 1.24 million and deposit resources of about %o 1, million. It was the only scheduled bank
formed with capital raised entirely from the small income group of people of &ast /akistan.
&astern Banking 8orporation was nationali#ed under the Bangladesh Banks 3ationali#ation (rder 1+@4 and its
name was changed to 0ttara Bank. At that time" the bank had 411 branches. %he government retracted +DE of its
share capital and allowed it to operate as a private bank. It was transformed into a limited company on 1D
*eptember 1+A= then it made its 9ourney like a modern private Bank at its registered office and other branches. %he
initial Authori#ed 8apital of the Bank was 4, (%wenty) core %aka. -hich paid capital was 1, FtenG core taka.
)overnment hold CE share and rest +2E shares are distribute in privet sector. 0ttara Bank's head office is suited in
$oti9heel cHa. !haka;1,,,. A new opportunity in this field of financial activities was opened for the business. 0B1
made a careful 9ourney and maintained its successive growth for few years with its qualified professional
management under most unpredictable" unregulated" uncertainties and limitations. %he bank is listed with both
!haka and 8hittagong *tock &changes.
+.+ Uttara Bank at a Pre$ent
0ttara Bank is one of the largest and oldest private sector commercial bank in Bangladesh" with years of
eperience. Adaptation of modern technology both in terms of equipment and banking practice ensures efficient
service to clients. 411 branches at homo and C,, affiliates worldwide create efficient networking and reach
capability. 0ttara is a bank that serves both clients and country.
1ike clothes shops" candy shops" bake shops" food shops" 0ttara Bank 1imited is not a 6debt shop7 the term being
used by many to call the present say banks. It is now been called a modern bank that undertakes all its operation at
international standard. Although 0ttara Bank 1imited faces some primary difficulties in past" it has now emerged
as a ma9or player in the financial sector. It is listed in both !haka and 8hittagong bourses I/( that raised the paid;
up capital of the bank to %k.1, core. In =1 $arch 4,,C reserve fund was %k1@A.2 core. 0ttara Bank 1imited has
built itself as one of the pillars of Bangladesh's financial sector and is playing a pivotal role in the etending the
role of the private sector of the economy. %he bank has a branch network nation wide with 411 branches
+., "or(orate Mi$$ion

-e shall be the forefront of national economic development by
Anticipating business solutions required by all our customers everywhere and innovative supplying
them beyond epectation.
*etting industry benchmarks of world class standard delivering customer value through our
comprehensive product range" customer service and all our activities building an eciting team;based
working environment that will attract" develop and retain employees of eceptional ability who help
celebrate the success of our business" of our customer and of national development.
$aintaining the highest ethical standards and a community responsibility worthy of a leading
corporate citi#en.
8ontinuously improving productivity and profitability" and thereby enhancing shareholder value
+.- "or(orate 8i$ion

%o be in the front of national development by providing all the customers inspirational strength" dependable
support and the most comprehensive range of business solution through our team of professional that work
passionately to be outstanding in everything to do.
+./ "or(orate !b.ective
%he main ob9ectives of the 0ttara Bank 1imited are as follows:
a) %o establish" maintain" carry on" transact" undertake and conduct all types of banking" financial"
investment and trust business of in Bangladesh and abroad.
b) %o form" establish and organi#e any bank" company" institutions or organi#ation either singly andHor in
9oint collaboration of partnership with any individual company" financial institution" bank" organi#ation
c) (r any government and or government agency for the purpose of carrying on banking" financial
investment and trust business andHor any other business as provided hereafter.
d) %o carry on any business relating to -age &arner *cheme as may be allowed by Bangladesh Bank from
time to time including maintaining of foreign currency accounts and any other matter related thereto.
e) %o contract or negotiate all kinds of loan andHor assistance" private or public from any source" local or
foreign" and to take all such steps as may be required to be complete such deals.
f) %o form" organi#e assets" participate or aid in forming" promoting or organi#ing any company" bank"
syndicate" consortium institute or any holding and subsidiary company in Bangladesh or abroad for the
purpose of undertaking any banking financial investment and trust business.
g) %o take part in the formation" management" supervision or control of business or operations of any
company or undertaking and for that purpose to render technical managerial and administrative services
and act as administrator" manager and secretary.
h) %o amalgamate or reconstruct or recogni#e with any commercial bank" or body corporate or association
in cooperation with any person" commercial bank or association.
i) %o establish and open offices and branches to carry on all or any of the above business abroad and
within the country provided prior permission is obtained from the Bangladesh Bank.
9) %o establish provident fund" gratuity" pension" and other fund for the welfare and benefit of the
employees and staffs" former or present and any matter related thereon.
+.3 UBL at a Glance

0B1 is one of the largest private banks in Bangladesh.
It operates through 411 fully computeri#ed branches ensuring best possible and fastest services to its
valued clients.
%he bank has more than C,, foreign correspondents world wide.
%otal number of employees nearly ="DC4.
%he Board of !irectors consists of 1D members.
%he bank is headed by the $anaging !irector who is the 8hief &ecutive (fficer.
%he >ead (ffice is located at Bank's own 1A;storied building at $oti9heel" the commercial center of the
capital" !haka.
UBL Net#ork$
8orporate (ffices ( 8orporate Branch and 1ocal (ffice ) +
5egional (ffice )+
-orldwide Affiliates 3**
%otal Branches ( Including 8orporate Branch and 1ocal (ffice ) +))
Authori#ed !ealer Branches ,9
%reasury and !ealing 5oom )
%raining Institute )
$an /ower ,/3+

able:)
+.; Strate%ie$ of UBL
0B1 Bank 1imited mainly follows top down approach to take necessary decisions for the company. Basically they
follow the centrali#e strategy where the >ead (ffice of the Bank control and monitor all the activities of its
branches. In case of marketing strategy they basically depend on Iword of mouth' as they are already well
reputed for its long;term service in the banking industry.
+.9 2unction of Uttara Bank L0
0ttara Bank 1imited performs all types of functions of a modern commercial bank" which generally includes:
1) $obili#ation of savings of the people and safe keeping of all types of deposit account.
4) $aking advances especially for productive activities and for the other commercial and socio;economic needs.
=) /roviding banking services to common people through the branches.
2) Introduce modern Banking services in the country.
D) !iscounting and purchasing bills.
C) <arious information" guidance and suggestions for promotion of trade and industry keeping in view of the
overall economic development of the country.
@) .inance for both capital machinery and working capital.
A) 5elating to constructions of both commercial and residential.
+) .inance under small business of self employed clients.
1,) .inance of farming and non;farming activities to rural people including purchase of agricultural
equipments.
11) &nsuing proper utili#ation of credit disbursed.
14) !eveloping new products $arket surveys before making any finance
1=) .inance for small transport.
12) $onitoring and forecasting.
1D) !eveloping marketing campaigns.
1C) .inance for household durables.
1@) -ork simplification studies.
1A) $onitoring diversification of portfolio among different sectors.
+.<. "or(orate Information of UBL
Name of t&e "om(any Uttara Bank Limited
Le%al 2orm1 0ttara Bank 1imited had been a nationali#ation bank in the name
of 0ttara Bank under the Bangladesh Bank (3ationali#ation)
order 1+@4" formerly known as the &astern Banking 8orporation
1imited which was started functioning on and from 4A.,1.1+CD.
8onsequent upon the amendment of Bangladesh Bank
(3ationali#ation) (rder 1+@4" the 0ttara Bank was converted
into 0ttara Bank 1imited as a public limited company in the year
1+A=. %he 0ttara Bank 1imited was incorporated as a banking
company on 4+.,C.1+A= and obtained business commencement
certificate on 41.,A.1+A=. %he Bank floated its shares in the year
1+A2. It has 411 branches all over Bangladesh through which it
carries out all its banking activities. %he Bank is listed in the
!haka *tock &change 1td. and 8hittagong *tock &change 1td.
as a publicly quoted company for trading of its shares.
'e%i$tered !ffice1 0ttara Bank Bhaban (1=
th
.loor) +,;+1" $oti9heel 8ommercial
Area" !haka;1,,," Bangladesh.)/( Bo:A1A and 41@
ele:fa51 AA;,4;@1CA=@C"AA;,4;+DD=,A1"AA;,4;+DC,A4, andAA;,4;
+DCA+21
"able1 BA3J&5
S#ift "ode1 0%B1B!!>
E:mail1 uttaraKcitecho.net" ublmisKciutechho.net"
ubldgenKuttarabank.com
Web Site1 www.uttarabank;bd.com
"&airman1 $r. A#harul Islam.
8ice "&airman1 $r. $d.Assadu##man
Mana%in% 0irector1 $r. *hamasuddin Ahmed.
"om(any Secretary1 $r. $d. .a#lur 5ahman.
Auditor$1 $H*. $. $. 5ahman and 8o.
8hartered Accountants.
$H* 5ahman $ostafa Alam and8o. 8hartered Account

able:+1 "or(orate Information of UBL
+.)*. =uman 'e$ource$ 0e(artment
0B1 has a separate >uman 5esources !ivision (>5!) to manage the employee policies and practices. %he
eecutives and officers of the bank have been working for smooth banking operations. Bank follows a standardi#ed
human resources policy. >5! of the Bank follow a transparent and free and fair system to ensure the standard
recruitment" training and development of human resources of the bank. %he bank has defined >5 policies including
recruitment" training and development" promotion" leave" transfer and disciplinary action policy. 0sually internal
recruitment procedures are considered to fill up the mid and top management positions" while entry;level positions
are filled with regularly through competitive recruitment eams. %hey follow transparent" well;defined and strict
rules for appointment of officers and staff in the BankLs service.
+.)). ORGANIZATIONAL HIERARCHY:
At present there are 1D members in the Board of !irectors. In Board of !irectors 1" chairmen1" $anagement
!irector and 1= directors are involved in Board of directors. According to the Banking 8ompany Act" $anagement
!irectors are not elected by the directors. %hey are appointed by Bangladesh Bank from outer sources? moreover"
the committee selected by shareholders represents individual body that then looks after the periodic issue with the
management and tries to solve the problem.
+.)+. Organ gram of UBL at Darus Salam Road Bran!
2i%ure:*)1 !r%an %ram of UBL at 0aru$ Salam 'oad Branc&
+.),. Branc&e$ of Uttara Bank Ltd
0ttara Bank limited
!arus *alam 5oad Branch
8ode;1D4+
Assistant )eneral $anager
)eneral Banking !epartment
.oreign &change
!epartment
1oan Advance !epartment
*enior /rincipal
(fficer
/rincipal (fficer
(fficer
Assistant (fficer
(fficer
Advance (fficer
Assistant (fficer
*enior /rincipal
(fficer
Advance (fficer
*enior /rincipal
(fficer
(fficer
+.)-. D"#artm"nts of Uttara Ban$ Ltd at Darus Salam Road Bran!
%here are mainly three departments these are:;
General bankin%
2orei%n e5c&an%e and
Loan$ and Advance$
+.)-.) General bankin%1
)eneral Banking !epartment is considered as the direct customer service center. It is the starting point of
all the banking operation. It opens new accounts" remits funds" honor cheque" takes deposits" issues bank
draft and pay order etc. general Banking is also known as retail banking. .ollowing are the ma9or
banking:
Account opening section
8learing section
8ash section
5emittance
+.)-.+ 2orei%n E5c&an%e1
%his department is responsible for the following 9obs:
<erification o 1H8 application
1H 8 opening.
*anction the application
Advising 1H8
&port trade financing
5emittance
+.)-., Loan$ and Advance$1
%his department is responsible for the following 9obs:
1 /repare the application form to provide loan
4 /reparing 8IB *tatements
= /reparing 8redit /roposal and *tatement
2 Administration of 5etail 8redit
+.)/. Product and Service$ of Uttara Bank Ltd
2i%ure:+1 Product and Service$
,.*. &eoretical A$(ect
,.). 2inancial Performance Analy$i$
/roduct and *ervices
0e(o$it Sc&eme 2orei%n E5c&an%e International
Bu$ine$$ Product$
Loan$ and
Advance$
/ersonal 1oan
scheme
.estival *mall
Business 1oan
*pecial >ouse
Building loan
1ong %erm and
*hort term
financing
>ouse Building
loan
Bank *pecial
*avings *cheme
(***)
.ied %erm
!eposit (.!5)
*hort %erm
!eposit (*%!)
*avings Bank
Account (*B AHc)
8urrent !eposit
Account (8! AH8)
8urrent !eposits
(8!)
3on 5esident .oreign
8urrency !eposit
Account (3.8!)
5esident .oreign
8urrency !eposit
Account (5.8!)
.oreign 8urrency
!eposit Account
$oney )ram
0A& &change
/lacid &press
1etter of 8redit
Back to Back 1etter
of 8redit (B%B
Buying and *elling of
.oreign &change
.oreign !emand
!raft
.inancial Performance is a sub9ective measure of how well a firm can use its assets from business and generate
revenues. .inancial /erformance term is also used as a general measure of a firmLs overall financial situation over a
given period of time" and can be used to compare with similar firms across the same industry or to
compare industries or sectors in aggregation.
.inancial performance analysis refers to an assessment of the viability" stability and profitability of a business" sub;
business or pro9ect. It is performed by professionals who prepare reports using ratios that make use of information
taken from financial statements and other reports. %hese reports are usually presented to top level management as
one of their bases in making business decisions. Based on these reports" management may take decision. .inancial
performance analysis is a vital to get a financial overview about a company. )enerally it is consists of the
interpretation of balance sheet and income statement. 5atio analysis and trend analysis can be done by using these
two statements. %hese analyses are the ma9or tools for analy#ing the company's financial performance.
,.+. Balance $&eet
In financial accounting" a balance sheet or statement of financial position is a summary of the financial balances of
a sole proprietorship" a business partnership or a company. Assets" liabilities and ownership equity are listed as of a
specific date" such as the end of its financial year. A balance sheet is often described as a Msnapshot of a companyLs
financial conditionM. (f the four basic financial statements" the balance sheet is the only statement which applies to
a single point in time of a businessL calendar year. A standard company balance sheet has three parts: assets"
liabilities and ownership equity.
,., Income Statement
Income statement also referred as profit and loss statement" earnings statement" operating statement or statement of
operations is a companyLs financial statement that indicates how the revenue is transformed into the net income. It
displays the revenues recogni#ed for a specific period" and the cost and epenses charged against these revenues"
including write;offs (e.g." depreciation and amorti#ation of various assets) and taes. %he purpose of the income
statement is to show managers and investors whether the company made or lost money during the period being
reported.
,.- 'atio Analy$i$
A tool used by individuals to conduct a quantitative analysis of information in a company's financial
statements.5atios are calculated from current year numbers and are then compared to previous years" other
companies"the Industry" or even the economy to 9udge the performance of the company.%he basic inputs to ratio
analysis are the firm's income statement and balance sheet for the periods to be eamined. 5atio analysis is
predominately used by proponents of fundamental analysis.
In finance" a financial ratio or accounting ratio is a ratio of two selected numerical values taken from an
enterprise's financial statements. %here are many standard ratios used to try to evaluate the overall financial
condition of a corporation or other organi#ation. .inancial ratios may be used by managers within a firm" by
current and potential shareholders (owners) of a firm" and by a firm's creditors. *ecurity analysts use financial
ratios to compare the strengths and weaknesses in various companies. If shares in a company are traded in a
financial market" the market price of the shares is used in certain financial ratios. In short" ratio analysis is
essentially concerened with the calculation of relationships which" after proper identification and interpretation
may provide information about the operations and state of affairs of a business enterprise.%he analysis is used to
provide indicators of past performance in terms of critical success factors of a business.%his assistance in decision;
making reduces reliance on guesswork and intution and establishes a basis for sound 9udgement.
,./. Si%nificance of u$in% ratio$
%he significance of a ratio can only truly be appreciated when:
). It is compared with other ratios in the same set of financial statements.
+. It is compared with the same ratio in previous financial statements (trend analysis).
,. It is compared with a standard of performance (industry average).*uch a standard may be either the ratio
which represents the typical performance of the trade or industry" or the ratio which represents the target set
by management as desirable for the business.
5atio analysis is not merely the application of a formula to financial data to calculate a given ratio. $ore
important is the interpretation of the ratio value. %o answer such questions as is it too high or too lowN Is it good or
badN %wo types of ratio comparisons can be made: 8ross;sectional and %ime;series analysis.
ime:$erie$ Analy$i$1
,.3 y(e$ of 'atio "om(ari$on$
%ime;series analysis evaluates performance over time. 8omparison of current to past performance" using ratios"
allows the firm to determine whether it is progressing as planned. Additionally" time;series analysis is often helpful
in checking the reasonableness of a firm's pro9ected financial statements.
"ro$$:Sectional Analy$i$1
8ross;*ectional analysis evaluates performance of different firmsO financial ratios at the same point in time.
"ombined Analy$i$1
%he most informative approach to ratio analysis is one combines cross;sectional and time;series analysis. A
combined view permits assessment of the trend in the behavior of ratio in relation to the trend for the industry.
,.; "aution$ about 'atio Analy$i$
Before discussing specific ratios" we should consider the following cautions:
A single ratio does not generally provide sufficient information from which to 9udge the overall
performance of the firm.
Be sure that the dates of the financial statements being compared are the same.
It is preferable to use audited financial statements for ratio analysis.
Be certain that the data being compared have all been developed in the same way
.inancial ratios can be divided into four basic groups or categories:
i. 1iquidity ratios
ii. Activity ratios
iii. !ebt ratios and
iv. /rofitability ratios ;run operation of the firm. !ebt ratios are useful primarily when the analyst is sure that
the firm will success
v. 1iquidity" activity" and debt ratios primarily measure risk" profitability ratios measure return. In the near
term" the important categories are liquidity" activity" and profitability" because these provide the
information that is critical to the short fully weather the short run.
.inancial
5atios
,.9 Grou($ of 2inancial 'atio$

2i%ure :,1 Grou($ of 2inancial 'atio$
,.9.) Analy>in% li4uidity
1iquidity
5atio
Activity
5atio
!ebt 5atio /rofitability
5atio
3et -orking
8apital
8urrent
5atio
Puick
(Acid;%est)
5atio
&arnings per
*hare
Inventory
%urnover
Average
8ollectio
n /eriod
Average
/ayment
/eriod
.ied Asset
%urnover
%otal Asset
%urnover
!egree of
Indebtednes
s
%he Ability
to *ervice
!ebt
)ross /rofit
$argin
(perating /rofit
$argin
3et /rofit
$argin
5eturns on
Investment
5eturn on
&quity
/riceH&arning
s 5atio
!ebt
5atio
!ebt;
&quity
5atio
%ime
Interest
&arned
.ied
/ayment
8overag
e 5atio
%he liquidity of a business firm is measured by its ability to satisfy its short term obligations as they come due.
1iquidity refers to the solvency of the firm's overall financial position. %he three basic measures of liquidity are:
3et working capital Q 8urrent Assets R 8urrent 1iability
8urrent ratio Q 8urrent Assets H 8urrent 1iability
Puick 5atio Q 8ash S )overnment *ecurities S 5eceivable H %otal 8urrent 1iabilities
,.9.). a. Net Workin% "a(ital1
3et -orking 8apital" although not actually a ratio is a common measure of a firm's overall liquidity. A measure of
liquidity is calculated by subtracting total current liabilities from total current assets.
Net Workin% "a(ital ?otal "urrent A$$et$ @otal "urrent Liabilitie$.
,.9.). b. "urrent 'atio1
(ne of the most general and frequently used of these liquidity ratios is the current ratio. (rgani#ations use current
ratio to measure the firm's ability to meet short;term obligations. It shows the banks ability to cover its current
liabilities with its current assets.
"urrent 'atio ? "urrent A$$etA"urrent Liabilitie$
Standard ratio1 +1)
,.9.). c. Buick 'atio1
%he quick ratio is a much more eacting measure than current ratio. %his ratio shows a firm's ability to meet
current liabilities with its most liquid assets.
Buick 'atio?"a$& C Government Securitie$ C 'eceivable A otal "urrent Liabilitie$.
Standard ratio1 )1)
,.9.). d. !(eratin% "o$t to Income 'atio1
It measures a particular Bank's operating efficiency by measuring the percent of the total operating income that the
Bank spends to operate its daily activities. It is calculated as follows:
"o$t Income 'atio ? otal !(eratin% E5(en$e$ A otal !(eratin% Income
,.9.+ Analy>in% Activity
Activity ratios measure the speed with which accounts are converted into sale or cash. -ith regard to current
accounts measures of liquidity are generally inadequate because differences in the composition of a firm's current
accounts can significantly affects its true liquidity.
A number of ratios are available for measuring the activity of the important current accounts" which includes
inventory" accounts receivable" and account payable. %he activity (efficiency of utili#ation) of total assets can also
be assessed
,.9.+. a. otal A$$et urnover1
%he total asset turnover indicates the efficiency with which the firm is able to use all its assets to generate sales.
otal A$$et urnover ? Sale$A otal A$$et
,.9.+. b. Inve$tment to 0e(o$it 'atio1
Investment to !eposit 5atio shows the operating efficiency of a particular Bank in promoting its investment
product by measuring the percentage of the total deposit disbursed by the Bank as long and advance or as
investment. %he ratio is calculated as follows:
Inve$tment to 0e(o$it 'atio ? otal Inve$tment$ A otal 0e(o$it$
,.9.+. c. Inventory turnover1
A ratio showing how many times a companyLs inventory is sold and replaced over a period.
Inventory urnover? "o$t of %ood$ $oldA Avera%e Inventory
%he days in the period can then be divided by the inventory turnover formula to calculate the days it takes to sell
the inventory on hand or Minventory turnover daysM. %his ratio should be compared against industry averages. A
low turnover implies poor sales and" therefore" ecess inventory. A high ratio implies either strong sales or
ineffective buying. >igh inventory levels are unhealthy because they represent an investment with a rate of return
of #ero. It also opens the company up to trouble should prices begin to fall.
,.9.+. d. Avera%e "ollection Period1
Average collection period is useful in evaluating credit and collection policies. %his ratio also measures the quality
of debtors. It is arrived at by diving the average daily sales into the accounts receivable balance:
Avera%e "ollection Period?Account$ receivableA D"redit $ale$A,3/E
A short collection period implies prompt payment by debtors. It reduces the chances of bad debts. *imilarly" a
longer collection period implies too liberal and inefficient credit collection performance. It is difficult to provide a
standard collection period of debtors.
,.9.+. e. Avera%e Payment Period1
Average payment period ratio gives the average credit period en9oyed from the creditors that means it represents
the number of days by the firm to pay its creditors. A high creditor's turnover ratio or a lower credit period ratio
signifies that the creditors are being paid promptly. %his situation enhances the credit worthiness of the company.
>owever a very favorable ratio to this effect also shows that the business is not taking the full advantage of credit
facilities allowed by the creditors. It can be calculated using the following formula:
Avera%e Payment Period?Account$ (ayableA Avera%e (urc&a$e (er day
,.9.+. f. 2i5ed A$$et urnover1
A financial ratio of net sales to fied assets. %he fied;asset turnover ratio measures a companyLs ability to generate
net sales from fied;asset investments ; specifically property" plant and equipment (//and&) ; net of depreciation.
A higher fied;asset turnover ratio shows that the company has been more effective in using the investment in
fied assets to generate revenues. %he fied;asset turnover ratio is calculated as:
2i5ed A$$et urnover?Gro$$ urnoverA Net fi5ed a$$et$
,.9.,. Analy>in% 0ebt1
%he debt position of that indicates the amount of other people's money being used in attempting to generate profits.
In general" the more debt a firm uses in relation to its total assets" the greater its financial leverage" a term use to
describe the magnification of risk and return introduced through the use of fied;cost financing such as debt and
preferred stock.
,.9.,. a. 0ebt 'atio1
%he debt ratio measures the proportion of total assets provided by the firm's creditors.
0ebt 'atio ? otal Liabilitie$ A otal A$$et$
,.9.,. b. E4uity "a(ital 'atio1
%he ratio shows the position of the Bank's owner's equity by measuring the portion of total asset financed by the
shareholders invested funds and it is calculated as follows:
E4uity "a(ital 'atio ? otal S&are&older7$ E4uity A otal A$$et$
&e ability to $ervice debt1
It refers the ability of a firm to meet the contractual payments required on a scheduled basis over the life of a debt.
%he firm's ability to meet certain fied charges is measured using coverage ratios.
,.9.,. c. ime Intere$t Earned 'atio1
%his ratio measures the ability to meet contractual interest payment that means how much the company able to pay
interest from their income.
ime Intere$t Earned 'atio?EBIA Intere$t
%hese measures evaluate the bank's earnings with respect to a given level of sales" a certain level of assets" the
owner's investment" or share value. -ithout profits" a firm could not attract outside capital. $oreover" present
owners and creditors would become concerned about the company's future and attempt to recover their funds.
(wners" creditors" and management pay close attention to boosting profits due to the great importance placed on
earnings in the marketplace.
,.9.-. a. !(eratin% Profit Mar%in1
%he (perating /rofit $argin represents what are often called the pure profits earned on each sales dollar. A high
operating profit margin is preferred. %he operating profit margin is calculated as follows:
!(eratin% Profit Mar%in ? !(eratin% Profit A Sale$
,.9.-. b. Net (rofit Mar%in1
,.9.-. Analy>in% Profitability1
%he net profit margin measures the percentage of each sales dollar remaining after all epenses" including taes"
have deducted. %he higher the net profit margin is better. %he net profit margin is calculated as follows:
Net (rofit Mar%in ? Net (rofit after a5e$ A Sale$
,.9.-. c. 'eturn on A$$et D'!AE1
5eturn on asset (5(A)" which is often called the firms return on total assets" measures the overall effectiveness of
management in generating profits with its available assets. %he higher ratio is better.
'eturn on A$$et D'!AE ? Net (rofit after a5e$ A otal A$$et$
,.9.-. d. 'eturn on E4uity D'!EE1
%he 5eturn on &quity (5(&) measures the return earned on the owners (both preferred and common stockholders)
investment. )enerally" the higher this return" the better off the owners.
'eturn on E4uity D'!EE ? Net (rofit after a5e$ A Stock&older$ E4uity
,.9.-. e. PriceA Earnin%$ ratio DPE ratioE1
%he /riceH &arnings ratio (price;to;earnings ratio) of a stock is a measure of the price paid for a share relative to the
income or profit earned by the firm per share.
PAE ratio : Price (er $&are A earnin%$ (er $&are
,. 9.-. f. Earnin%$ (er $&are DEPSE1
&arnings per share (&/*) are the earnings returned on the initial investment amount.
EPS? Net incomeAno. of $&are out$tandin%
-.*. Buantitative Analy$i$ of Uttara Bank Limited
-.) 'atio Analy$i$
-.).+ Li4uidity 'atio1
a. "urrent ratio
%he current ratio" one of the most commonly cited financial ratios" measures the firm's ability to meet
its short term obligations. %he higher the current ratio" the better the liquidity position of the firm. It is
epressed as:
"urrent 'atio?"urrent A$$etA"urrent Liabilitie$
year +**/ +**3 +**; +**9 +**<
"urrent
'atio
*.;; ).*- ).)) ).*- *.<9
able:,1 "urrent 'atio
Source1 Annual 'e(ort of UBL
Gra(&ical Pre$entation1
2i%ure:-1 "urrent 'atio
Inter(retation1
%hat is the higher the current ratio? the more liquid the firm is considered to be. But 0B1" 8urrent ratio is not
good because it maintains ,.+Atk current assets against 1tk current liabilities where as normally banking industry
maintains 1: 1 current ratio. %his graph shows that" the current ratio is decreasing year by year.
b. Net Workin% ca(ital
3et working capital" although not actually a ratio is a common measure of a firm's overall 1iquidity a
measure of liquidity ratio calculated by
Net Workin% ca(ital?"urrent A$$et:"urrent Liabilitie$
year +**/ +**3 +**; +**9 +**<
Net Workin%
"a(italDmillionE
:;+<.-) +*9/.-, ,3)).<* )/-*.;* :3;+.9+
able:-1 Net Workin% ca(ital

2i%ure:/1 Net Workin% "a(ital
Inter(retation1
3et working capital of 0B1 gradually decreasing in Tear by Tear >owever" the bank can not able to meet up its
current obligations. *o the Bank should increase its 8urrent asset.
-.).,. Analy>in% Activity 'atio1
). "o$t Income 'atio1
"o$t Income 'atio?otal o(eratin% E5(en$e$Aotal !(eratin% Income
Fear +**/ +**3 +**; +**9 +**<
"o$t income
'atio
-<.93G /+.+,G /,.,3G -/.*<G -/.-+G
able:/1 "o$t Income 'atio

2i%ure:31 "o$t Income 'atio
Inter(retation1
-e know that this ratio measures the operating efficiency of the bank by measuring the portion if the total
operating costs relative to the total operating income of that bank and the higher the ratio" the lower the operating
efficiency. In 4,,@ the operating cost of 0B1 Bank 1td. is high but after that it decreasing. *o it can be said that
the operating efficiency of the 0B1 Bank 1td. is in good position that is they are able to minimi#e their operating
cost.
+. otal A$$et urnover 'atio1
%he total asset turnover indicates the efficiency with which the firm is able to use all its assets to generate
sales.
otal A$$et urnover? !(eratin% IncomeAotal A$$et
Fear +**/ +**3 +**; +**9 +**<
otal A$$et
urnover
*.*/3 *.*/< *.*/< *.*39 *.*3-
able:31 otal A$$et urnover
2i%ure:;1 otal A$$et urnover$
Inter(retation1
%he banks total asset turnover ratio in 4,,D ; 4,,A that is .,,DC; ,.,CA which means D.C to C.A times. -e
know the greater the total asset turnover? it is more efficient and 2 to C times is slandered position but
also depends on industry. But 0B1 is total asset turnover ratio is increasing day by day but in 4,,+ its
decreasing which is not good sign
). 0ebt 'atio1
%he debt ratio measures the preparation of total assets provided by the firm's creditors.
-.).- Analy>in% 0ebt 'atio1
0ebt ratio? otal Liabilitie$Aotal A$$et$
Fear +**/ +**3 +**; +**9 +**<
0ebt 'atio *.</ *.</ *.</ *.<- *.<)
able:;1 0ebt ratio

2i%ure:91 0ebt ratio
Inter(retation1
%his graph shows that" the debt ratio was decreasing year by year. %he !ebt ratio measures" the proportion of
total assets provides by the firm's creditors. %heir debt ratio were decreasing trend that indicates positive
sign.
+. ime Intere$t Earned 'atio1
%he times interest earned ratio" sometimes called the interest coverage ratio" measures the firm's ability to
make contractual interest payments.
ime Intere$t Earned 'atio ?Earnin%$ before intere$t and a5e$AIntere$t
Fear +**/ +**3 +**; +**9 +**<
ime Intere$t
Earned 'atio
).)) ).-< ).3) ).</ ).;9
able:91 ime Intere$t Earned 'atio

2i%ure:<1 ime Intere$t Earned 'atio
Inter(retation1
%ime Interest earned ratio on 0B1's is highly satisfying. Because" it's increasing year by year but in 4,,+
it was slightly decrease to 1.@A. *o 0B1 should maintain this ratio by minimi#ing its operating costs in
order to get adequate earnings to satisfying interest obligations.
). Inve$tment to 0e(o$it ratio1
Inve$tment to 0e(o$it 'atio?otal inve$tmentAotal 0e(o$it
-.)./ Analy>in% Profitability 'atio1
Fear +**/ +**3 +**; +**9 +**<
Inve$tment
o 0e(o$it
'atio
*.++) *.+-+ *.,,+ *.++) *.,;<
able:<1 Inve$tment to 0e(o$it 'atio
2i%ure:)*1 Inve$tment to 0e(o$it 'atio
Inter(retation1
Investment to deposit ratio shows that which amount of deposit is used to as investment. 0B1 Bank 1td.
investment to deposit ratio is increasing last year .%hat means" Bank is properly utili#e their deposit.
+. Net Profit Mar%in1
%he net profit margin measures the percentage of each sales dollar remaining after all epenses" including
taes" have deducted. %he higher the firm's net profit margin is better. %he net profit margin is a
commonly cited measure of the company's success with respect to earnings on sales
Net Profit Mar%in?Net (rofit after ta5Ao(eratin% income
Fear +**/ +**3 +**; +**9 +**<
Net
Profit
Mar%in
*.*- *.*< *.), *.+9 *.+-
able:)*1 Net Profit Mar%in

2i%ure : ))1 Net Profit Mar%in
Inter(rHtation1
%he Bank net profit margin in 4,,D;4,,A that is ,.,2;,.4A which indicates that profit margin is increasing day by
day and its good situation. But in 4,,+ 0B1's net profit margin is decreasing which indicates that the banks profit
is decreasing.
,. 'eturn on A$$et D'!AE1
%he return on asset (5(A)" which is often called the firm's return on total assets" measures the overall
effectiveness of management in generating profits with its available assets. %he higher the ratio is better
'eturn on A$$et D'!AE ?Net Profit after ta5Aotal A$$et
Fear +**/ +**3 +**; +**9 +**<
'eturn on
A$$et
*.+,G *.//G *.;;G ).</G )./-G
able:))1 'eturn on A$$et
2i%ure:)+1 'eturn$ on A$$et
Inter(retation1
%he banks return on asset increasing from ,.4=E to 1.D2E in the preceding Dyears. *o the 0B1 earn more profit
from the assets. %his is good for the bank. But in 4,,+ 5(A is goes down its not good for the bank.
-. 'eturn on E4uity D'!EE1
%he return on equity measures the return earned on the owner's (both preferred and common
stockholders') investment. )enerally the higher the return" the better off the owner's.
'eturn on E4uity?Net Profit after a5A S&are&older$ e4uity
Fear +**/ +**3 +**; +**9 +**<
'eturn on
E4uity
/.;;G )).<+G )3.3<G ,*.93G );.9)G
able:)+1 'eturn on E4uity

2i%ure :),1 'eturn$ on E4uity
Inter(retation1
%he banks return on equity deviates from D.@@E to =,.ACE. In the preceding D years and the highest value can be
observed in 4,,A and the lowest value can be observed during the 4,,+" which is not desirable. *o the management
should work hard to increase the return associated with equity.
/. Earnin%$ (er S&are1
%he firm's &arning per share (&/*) are generally of interest to present or prospective stockholders and
management. %he &arning per share represent the number of dollars earned on behalf of each outstanding
share of common stock. %he earnings per share is calculated as follows
Earnin%$ (er S&are ?Earnin%$ available for common $tock &olderANo of $&are$ of common $tock
out$tandin%
Fear +**/ +**3 +**; +**9 +**<
EPS )-+.9, )+-./< )*+./3 )-+./3 3<.)<
able:),1 Earnin%$ (er S&are

2i%ure:)-1 Earnin%$ (er S&are
Inter(retation1
%he graph shows that" in 4,,A earnings per share of 0B1's is higher than 4,,@ and 4,,+ and it decrease
in 4,,+.3et profit margin decreasing that means bank's operating result is decreasing.
3. Price Earnin%$ 'atio1
%he price or earning (/H&) ratio is commonly used to assess the owners' appraisal of share value. %he /H&
represents the amount investors are willing to pay for each dollar of the firm's earnings. %he higher the
/H& ratio" the greater the investor confidence in the firm's future. %he price &arning (/H&) ratio is
calculated as follows
Price Earnin%$ 'atio?Market (rice (er $&are of common $tockAEarnin% (er $&are
Fear +**/ +**3 +**; +**9 +**<
Price Earnin%
'atio
)<.39 )9./3 -;.,- +,.9) +*.<3
able:)-1 Price Earnin%$ 'atio

2i%ure:)/1 Price Earnin%$ 'atio
Inter(retation1
%he graph shows that" price earnings ratio of 0B1's in increasing from 4,,A to 4,,@ and it slightly
decreasing in 4,,+. %he banks price earnings ratio is in good position.
/.). Li4uidity 'atio1
a. "urrent 'atio
Fear UBL I2I"BL PBL
+**; 1.11 1.,2 ,.+@
+**9 1.,2 1.14 ,.AA
+**< ,.+A 1.1+ ,.+C
/.*. "om(arative Buantitative Analy$i$ of UBL #it& I2I"BL and PBL
able:)/1 "urrent 'atio
Source1 Annual 'e(ort D+**;:+**<E of UBLI I2I"BL and PBL

2i%ure :)31 "urrent 'atio
Inter(retation1
-e know that" the current ratio measures a firm's liquidity by measuring the portion of its current asset
relative to its current liabilities and the higher the ratio" the higher the liquidity of the firm. %he graph
shows that" 0B1 current ration is better than I.I8B1 and /B1 in 4,,@.And we see that 4,,A and 4,,+
where I.I8B1 are in better position than /B1 and 0B1. But in 4,,+ 0B1 current ratio is not satisfactory
other one bank. *o it can be said that" lower the current ratio" the lower the ability of the firm to pay its
bills.
a. !(eratin% "o$t to Income 'atio1
Fear UBL I2I"BL PBL
+**; /,.,)G /-.-/G ,).-/G
+**9 -/.*<G -9.<;G ,,./<G
+**< -/.-+G -;.,9G ,/./)G
/.+. Analy>in% Activity 'atio1
able:)31 !(eratin% "o$t to Income 'atio

2i%ure :);1 !(eratin% "o$t to Income 'atio
Inter(retation1
-e know that this ratio measures the operating efficiency of a particular bank by measuring the portion of the total
operating costs relative to the total operating income of that bank and the higher ratio" the lower the operating
efficiency. *o after observing the figure drawn above" 0B1 and I.I8B1's cost income ratio is decreasing from
D=.=1E to 2D.24E" which is satisfactory for the bank. (n the other hand both the bank's cost income ratio is
increasing year by year. *o" /B1 operating efficiency is not satisfactory.
b. otal A$$et urnover 'atio1
Fear UBL I2I"BL PBL
+**; 0.059 0.082 ,.,2+
+**9 0.068 0.069 ,.,D=
+**< 0.064 0.059 ,.,CC
able: );: otal A$$et urnover 'atio

2i%ure;)91 otal A$$et urnover 'atio
Inter(retation1
-e know the greater the total asset turn over" it is more efficient and 2 to C times is standard position. %he
graph shows that" the total asset turnover ratio of /B1 is lower than 0B1 and I.I8B1" in 4,,@ and4,,A.
(n the other hand" /urbali Bank 1td. has generated maimum level of turnover in year 4,,+ 8omparison
with 0B1 and 8B1 it can be said that 0B1 is more efficient in using their assets to generate income.
c. Inve$tment to 0e(o$it 'atio1
Fear UBL I2I"BL PBL
+**; *.,,+ *.)+9 *.)<3
+**9 *.++) *.)-/ *.+++
+**< *.,;< *.)9) *.)93
able: )9: Inve$tment to 0e(o$it 'atio

2i%ure: )<1 Inve$tment to 0e(o$it 'atio
Inter(retation1
As we know that the ratio measures the bank's efficiency in promoting its investment products the
customer and in using its funds collected from the customers to by measuring the percentage of total
deposit that the bank has disbursed as loan and advances and the higher the ratio the higher the banks
efficiency and vice;versa. %he graph shows that" 0B1 is in better position than I.I8B1 and /B1. In 4,,A
/B1 have a much better position than 0B1 and I.I8B1.
a. 0ebt 'atio1
Fear UBL I2I"BL PBL
+**; ,.+D ,.+= ,.AC
+**9 ,.+2 ,.+= ,.+2
+**< ,.+1 ,.+= ,.+A
able: )<1 0ebt 'atio
/.,. Analy>in% 0ebt 'atio1

2i%ure :+*1 0ebt 'atio
Inter(retation1
&very organi#ation should give more emphasi#e on equity capital than debt capital. >ere" we can see that the /B1
debt ratio is increasing year by year but in case of 0B1 and I.I8B1" their debt is stable in proceeding last = years"
which is lower than other two banks that mean 0ttara bank is emphasi#ing on equity capital financing. (n the
other hand" I.I8B1 and /B1 have more debt and the graph shows that the bank is more emphasi#ing on debt
capital" which is more risky.

a. Net Profit Mar%in1
Fear UBL I2I"BL PBL
+**; *.), *.+< *.+<
+**9 *.+9 *.+/ *.+)
+**< *.+- *.+- *.)9
able: +*1 Net Profit Mar%in
/.-. Analy>in% Profitability 'atio1

2i%ure :+)1 Net Profit Mar%in
Inter(retation
%he graph shows that" the 0B1 net profit margin is higher in 4,,A than I.I8B1 and 8B1. And net profit
margin of I.I8B1 and /B1 is fluctuating over three year. In 4,,@ 0B1 net profit margin is lower i.e.
,.1= which is not good sign for the bank.
b. 'eturn on A$$et1
Fear UBL I2I"BL PBL
+**; *.;;G +.-+G )./-G
+**9 ).</G ).--G ).</G
+**< )./-G ).-,G )./*G
able: +)1 'eturn on A$$et
2i%ure :++1 'eturn on A$$et
Inter(retation1
After having a careful view on the graph" over the three years I.I8B1 has maimum return on asset than 0B1 and
/B1 in 4,,@. But in 4,,+ it decreases but comparing with other two banks it remains more efficient to generate
additional 5(A than the 0B1 and /B1
c. 'eturn on E4uity D'!EE1
Fear UBL I2I"BL PBL
+**; 1C.C+ =C.+1E 1D.@DE
+**9 =,.ACE 4,.D=E 1A.C4E
+**< 1@.A1E 41.2=E 4=.+=E
able: ++1 'eturn on E4uity
Source1 Annual 'e(ort D+**;:+**<E of I2I"BLI UBL and PBL

2i%ure :+,1 'eturn on E4uity D'!EE
Inter(retation
-e know that the 5(& means return earned from the owners investments. %he graph shows that" 0B1's
5(& is fluctuating and in 4,,@ and 4,,A But 4,,+ it has in better position than I.I8B1 and /B1" which
means that 0B1's earned more from the owner's investments. %he graph also shows that in 4,,+ /B1's
5(& is in better position" where 0B1" I.I8B1's 5(& is in bad position.
d. Earnin%$ (er S&are
Tear 0B1 I.I8B1 /B1
4,,@ D1.4A 12=.A@ C4
4,,A 124.DD 2+ 2D
4,,+ C+.1+ D1.DA =D
able: +,1 Earnin%$ (er S&are

2i%ure :+-1 Earnin% Per S&are DEPSE
Inter(retation1
%he graph shows that" In 4,,A 0B1's &/* is in better position than I.I8B1 and /B1 where I.I8B1 has a
lower &/*. In 4,,+ 0B1's &/* is in better position than I.I8B1 and /B1. In 4,,+ /B1's &/* is slightly
decreasing than previous year. %he graph also shows that 0B1's &/* is increasing year by year where
other two banks &/* fluctuating.
3.). Ma.or 2indin%1
.rom the analysis it has seen that 0B1 Bank 1td .inancial performance were better than other two banks
(/ubali Bank and I.I8 Bank) ecept in some cases:
I. li4uidity 'atio$1
.rom the current ratio analysis it has seen that 0B1 has not enough current assets to pay their short
term obligations because the current ratio is decreasing year by year.
0ttara Bank 1imited net working capital has gradually decreasing and 4,,+ it was negative figure
that is bad sign for the bank.
%he operating efficiency of the 0ttara Bank ltd is in good position because they are able t minimi#e their
operating cost which we have seen cost to income ratio
II. Activity 'atio$1
Although 0ttara Bank 1imited total asset turnover ratio has increased in 4,,+ but overall their total
asset turnover is satisfactory.
%he investment of the 0B1 is increasing in the last year. %his is very good sign for the bank.
Because if the investment is increased in the bank which help to gain maimum profit.
III. 0ebt 'atio$1
!ebt 5atio 0B1 is in satisfactory range because it's year by year decreasing.
0B1's %ime interest ratio is not satisfactory because" they have only 1.@A tk. earning against 1 taka
interest obligation which is not good
I8. Profitability 'atio$1
.rom the trend analysis we have seen 0B1's 3et profit margin were increasing year by year. But in
4,,+ net profit margin has decreased. It indicates 3egative operating result of 0B1.
In 4,,+" 0B1 /H& ratio is indicates very good sign. %he investor who wants to buy 0B1 *hare
they will get the loan margin facility.
.rom the analysis we see that 0B1's &arning per *hare is better than other two banks" which indicates
better earnings for the bank.
%he bank's 5(A is decreasing but /B1 is more efficient to generate additional 5(A than the 0B1
and I.I8B1.
3.+. "onclu$ion1
0ttara Bank 1imited (0B1) setting new standards in the banking arena in the time of turbulent economic
conditions. As part of the long;term financial reform and moderni#ation plan of the government" the bank had been
converted into a public limited company. 0B1 helps to mobili#e the resources to stay strong in the key areas of
operation. In the areas of treasury operation" 0B1 remains the key player in the country's foreign echange and
money market enhancing profitability through careful pricing and assessment of risk and return on investment" the
treasury dealing is being strengthened to facilitate transactions requiring more sophisticated products and services
for larger institutional and corporate clients. %hough it has a wide range of network and confidence from the
customers but it has some problems those problems reduce it income .It is /18 but the authority is not that fleible
and it takes time to take decision.
.rom the practical point of view I can declare boldly that I really have en9oyed my Internship at this bank from the
very first day. $oreover" this internship program that is mandatory for my B.B.A program" although short;date"
obviously has helped my farther thinking about my career. I have tried my soul to incorporate the research report
with necessary relevant information in my report.
Although ecellence in Banking is the $oto of 0ttara Bank 1imited meeting the demand of the discerning
customer is not the sole ob9ective of the Bank. 8ustomer relation should be increased to give appropriate service to
them. And treat them as an asset of the company. !espite of these problems 0ttara Bank 1imited trying to improve
this condition and take some necessary measure to improve its condition.

Performance Analysis of Uttara Bank Limited

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Performance Analysis of Uttara Bank Limited

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Performance Evaluation

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