Business research method Independent University, Bangladesh

Independent University, Bangladesh

Report on: A Comparative Financial Performance Analysis of

Jamuna Bank and Premier Bank in Bangladesh

Semester : Autumn 2017

Course Code : BBA 499
Submitted To : ANWAR ZAHID
Lecture, School of Business
(IUB)
Submitted by : SYED WAFI HAIDER
Id : 1310897

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Independent University, Bangladesh

LETTER OF TRANSMITTAL

November 30, 2017

Anwar Zahid
Lecturer, School of Business
Independent University, Bangladesh (IUB)

Subject: Submission of report on “A Comparative Financial Performance Analysis of Jamuna Bank and
Premier Bank in Bangladesh”

Dear Sir,
It is my keen pleasure to submit you my internship report titled “A Comparative Financial Performance
Analysis of Jamuna Bank and Premier Bank in Bangladesh”. This report has been prepared based on
my three month period internship experience at Jamuna Bank Limited (JBL). The purpose of this report
was to fulfill the requirements of the degree Bachelor of Business Administration (BBA).

I tried to give my best effort to make this report successful. It has been an instructive and educative
experience for me to work along with a few banking officers. I would be really happy if the report that I
have created is able to serve its purpose. I express my special gratitude to you for dedicating your valuable
time, expert guidance and support. I have tried my best to complete the report appropriately as much as
possible. I would be available to explain any kind of queries related with my report anytime.

I will be glad if you kindly accept this report.

Thanking You
Yours sincerely,

……………………
SYED WAFI HAIDER
Id: 1310897
School Of Business
Independent University, Bangladesh
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Acknowledgement

At first I would like to express my gratitude to almighty Allah who has given me the opportunity to go
through the total process of internship and to write a report in this regard. I would like to acknowledge my
deepest gratitude to the honorable instructor Mr. Anwar Zahid, Lecturer, School of Business, Independent
University Bangladesh, who has given me suggestions regarding the writing of the report and to go
through the process which has become an excellent way of understanding the topic of my internship. I am
thankful to my friend and fellow internship students whose are continuing internship program besides me
who helped me to complete this report's been a great experience to work as an intern in an organization
like JAMUNA Bank Ltd. To prepare this particular paper, I had to go through all type of accounts which
gave me a good idea about that. I got full support from the all staffs of the JAMUNA Bank Ltd. Then I
would like to express my heartfelt gratitude to the Jamun Bank Uttara Branch for giving me a chance to
complete my internship program at their branch, for allowing me to gather information and helping me
every possible way in preparing the internship report. My endless thanks to go Mr. Md. Shahid Ullah
(Manager), for being patient and supporting me during my internship program. I would like to thank all
the officers of JAMUNA Bank Ltd. Specially (Md. Mahmud Hossain Khan and Mohammad Mehedi Al-
Suman) who have given me the chance to be familiar with the real organizational environment, and
practically experiencing the procedure practiced at. JAMUNA Bank Ltd.

Finally my sincere gratitude goes to Independent University Bangladesh authority for arranging this
internship program for students. It really makes student capable of doing official tasks before entering the
corporate world.

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Table of Contents
LETTER OF TRANSMITTAL ................................................................................................................... i

Acknowledgement ...................................................................................................................................... ii

List of Tables ............................................................................................................................................. iv

List of figures .............................................................................................................................................. v

Executive Summary ................................................................................................................................... vi

1.1. Company Profile ...................................................................................................................... 1

1.1.1. Vision, Mission and Objective ................................................................................................. 2

1.1.2. Corporate Department .............................................................................................................. 3

1.1.3. Products and services of JBL.................................................................................................... 5

1.1.4. Operation Details ...................................................................................................................... 7

1.1.5. CSR activities performed by Jamuna Bank Limited .............................................................. 10

2.1. Job Responsibilities ................................................................................................................ 11

2.2. Function of the Departments .................................................................................................. 13

3.1. Industry Analysis ................................................................................................................... 14

3.3. Analyze Issues based on relevant theory............................................................................... 19

3.4. Recommendation ................................................................................................................... 27

4.1. Conclusion ............................................................................................................................. 28

4.2. Implication ............................................................................................................................. 29

References ................................................................................................................................................. 30

Appendix A ............................................................................................................................................... 33

Appendix B ............................................................................................................................................... 34

Appendix C ............................................................................................................................................... 34

Lists of Tables ........................................................................................................................................... 35

List of Figure............................................................................................................................................. 35

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List of Tables

Table no Table Name Page no

1 Organizational structure of JBL Bank 04
Limited
2 Type of SME banking 7
3 CSR activities performed 10
4 Banking Industry structure 14
5 Generation structure of Bank 15
6 Current Scenario of 3rd generation bank 16
including Jamuna Bank and selected 5 Banks
7 Some advantage and disadvantage of Jamuna 18
Bank

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List of figures

Figure no Figure name Page no

1 Total Asset 17
2 Paid Up Capital 18
3 Return on asset ratio 20
4 Earnings Per share 21
5 Book Value per share 22
6 Loan deposit ratio 23
7 Average Deposit Growth 24
Rate
8 Deposit Growth Rate 25
9 Average Loan Growth Rate 26
10 Loan Growth rate 26

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Executive Summary

Jamuna Bank Ltd. was incorporated as a public Limited company on the 3rd June 2001.under Company
Act 1994. This is a 3rd generation bank. The Bank carries banking activities through its 112 branches in
the country. The commercial banking activities of the bank encompasses a wide range of services
including mobilizing deposits, providing investment facilities, discounting bills, conducting money
transfer and foreign exchange transactions and performing other related services such as safe keeping,
collections and issuing guarantees, acceptances and letter of credit. Here I discussed about the
“Comparative financial performance and ratio analysis of Jamuna Bank Limited with Premier Bank
Limited financial performance and ratio comparison.” To discuss this I have also given information about
the vision, mission, goal, objectives, core values and all related information of Jamuna Bank Limited. By
doing this report I am able to gain a vast knowledge how to calculate all financial ratios and evaluate the
performance of a financial institution. Customers of the bank are moderately satisfied to the service of the
bank, employees of the organization try their best to support the customer. Growth of JBL’s core is
praiseworthy and we complaint of all regulations throughout the years.

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1. Introduction

Generally by the word Bank we can easily understand that the financial institution deals with money.
But there are different types of banks like Central Banks, Commercial Banks, Savings Banks,
Investment Banks, Industrial Banks and Cooperative Banks etc. But when use the term Bank without
any prefix or qualification it refers to the Commercial banks. Commercial Banks are the primary
contributor to the economy of a country. As banks are profit earning concern, they collect deposit at
the lowest possible cost and provide loans and advanced at a higher cost.

1.1. Company Profile

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 of
Bangladesh with its Head Office currently at Hadi Mansion, 2, Dilkusha C/A, Dhaka-1000,
Bangladesh the Bank started its operation from 3rd June 2001.

Being a 3rd generation Bank of Bangladesh, it focuses on

Remaining with time
Managing change
Developing human capital
Creating true customer’s value
The Bank provides all types of support to trade, commerce, industry and overall business of the
country. JBL's finances are also available for the entrepreneurs to set up promising new ventures and
BMRE of existing industrial units. The bank was established by a group of local entrepreneurs who
are well reputed in the field of trade, commerce, industry and business of the country. The Bank
offers both conventional and Islamic banking through designated branches. The Bank is being
managed and operated by a group of highly educated and professional team with diversified
experience in finance and banking. The Management of the bank constantly focuses on understanding
and anticipating customer’s needs. Since the need of customers is changing day by day with the
changes of time, the bank endeavors its best to devise strategies and introduce new products to cope
with the change. Jamuna Bank Ltd. has already achieved tremendous progress since its beginning.
The bank has already built up reputation as one of quality service providers of the country.
At present the Bank has real-time Online banking branches (of both Urban and Rural areas) network
throughout the country having smart IT-backbone. Besides traditional delivery points, the bank has

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ATMs of its own, sharing with other partner banks and consortium throughout the country. The
operation hour of the Bank is 10:00 A.M. To 6:00 P.M. from Sunday to Thursday with transaction
hour from 10:00 A.M. to 4:00 P.M. The Bank remains closed on Friday, Saturday and government
holidays.

1.1.1. Vision, Mission and Objective

Mission

The Bank is committed to satisfy diverse needs of its customers through an array of
products at a competitive price by using appropriate technology and providing timely
service so that sustainable growth, reasonable return and contribution to the development
of the country can be ensured with a motivated and professional work force.

Vision

To become a leading banking institution and play a significant role in the development of
the country.

Objectives of JBL

a) To earn and maintain CAMEL Rating 'Strong'

b) To establish relationship banking and improve service quality through development
of Strategic Marketing Plans.
c) To remain one of the best banks in Bangladesh in terms of profitability and assets
quality.
d) To introduce fully automated systems through integration of information technology.
e) To ensure an adequate rate of return on investment.
f) To keep risk position at an acceptable range (including any off balance sheet risk).
g) To maintain adequate liquidity to meet maturing obligations and commitments.
h) To maintain a healthy growth of business with desired image.
i) To maintain adequate control systems and transparency in procedures.

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1.1.2. Corporate Department

It would be very difficult to control the system effectively, if the jobs are not organized considering
their inter relationship and are not allocated in a particular department. If the departments are not
fitted for the particular works there would be haphazard situation and the performance of a
particular department would not be measured. Jamuna Bank Limited has done this work very well.
There are:
1. Human resource Department.
2. Financial and Administration Department.
3. Monitoring and Inspection Department.
4. Marketing Department.
5. Personal Relation Department.
6. Merchant banking and Investment banking.
7. Treasury Division
8. International Division.
9. General Services Division.
10. Computer and Information Technology Department.
11. Credit Division.
12. Corporate Affairs Division.
13. Card division.
14. Board Audit Cell.

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Hierarchy of position in Jamuna Bank Limited

Table 01: Organizational structure of JBL Bank Limited

CHAIRMAN

Board of Directors Chief Advisor

Managing Director
Additional Managing Deputy Managing Director
Director (AMD) (DMD)

Senior Executive Vice President (SEPV)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Senior Assistant Vice President (SAVP)

Assistant Vice President (AVP)

First Assistant Vice President (FAVP)

Jr. Assistant Vice President (JAVP)

Senior Executive Officer (SEO)

Executive Officer (EO)

First Executive Officer (FEO)

Officer

Probationary Officer (PO)

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1.1.3. Products and services of JBL

The bank has a collection of mode that prepared financial products and services. Such products
are based on monthly savings schemes, consumer credit schemes, lease finance and personal loan
for women and shop finance scheme etc. Jamuna Bank ltd. also familiar with Q-cash ATM cards
for its valued customer providing 24 hours banking services through debit cards. JBL offers the
following services providing different types of services. Some of them are mentioned in below:
1. Deposit services
2. Remittance and collection
3. Import and export handling and finance
4. Loan syndication
5. Project finance
6. Investment banking
7. Lease finance
8. Hire purpose
9. Personal loan for woman
10. 24-hours banking: Q-cash ATM facility
11. Islamic banking
12. Corporate banking
13. Consumer credit scheme
14. International banking.
 Types of Deposit Account:
There are several types of deposit accounts. Each Account has different characteristics and every
account has some specific purpose to serve. JBL offers the following key personal banking
services. According to their uniqueness they are described as follows:
1. Savings Account
2. Current Deposit Account
3. Foreign Current Account
4. Short term Deposit Account (STD)
 ATM Services:
Jamuna Bank has already established 200+ ATMs in the countrywide. Being a Member of Q-
Cash, their cardholder can use DBBL, BRAC and Q-Cash ATM approximately access to 3500
ATMs.

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 SMS & Mobile Banking Services:

1. Mobile top up/ recharge
2. Fund transfer
3. Utility bills payment
4. Merchant payment
5. Balance inquiry
6. Mini statement of account
7. Transaction alert and notification
 Mobile Financial Services: Jamuna Bank Sure Cash provide such services
1. Account Opening
2. USSD Menu
3. Deposit Cash
4. Withdrawal Cash
5. Send Money
6. Pin Change
7. Balance Inquiry
8. Mini Statement
9. Utility Bill
 Cards offers by Jamuna bank ltd.:
1. Visa Classic Credit Card
2. Visa Gold Credit Card
3. Visa Dual Gold Credit Card
4. Visa Electron Debit Card
5. Protection Plus Debit Card
 Remittance Services:
Direct account credit to Beneficiary’s Account maintained with Jamuna Bank Limited.
Same day Credit to Beneficiary’s Account maintained with any other Banks Branches (9500
aprox.) in Bangladesh at the same day through EFTN (Electronic Fund Transfer Network).
Cash payout over the counter of JBL Branches & Mobile Operator Cash Pick up Points
through secret PIN number throughout the country.

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 Locker Services:
Storing too much Jewellery and valuables in the house at times becomes a security issue and an
impediment in case of natural calamities.
Jamuna Bank Limited offers their customer a safe, trustworthy space to store customer valuables,
Jewellery, documents and other things.
The Locker Service offering branches are:
1. Lalmatia Branch
2. Banani Branch
3. Dhanmondi Branch and
4. Foreign Exchange Branch
 Online Banking Service:
1. Jamuna Bank Limited offers Real-time online banking throughout
its 112 branches.
2. By dint of our online service any customer will be able to get the
following facilities:
3. Cash withdrawal from any branch.
4. Cash deposit into any branch
5. Encashment of pay-order from any branch.
6. Statement from any branch
 Student file:
"Student Saving Account” is daily interest bearing and monthly interest paying savings account
for Students.

1.1.4. Operation Details

SME BANKING:
SMS Banking of Jamuna Bank offers wide-ranging products and services matching the
requirement of every customer. Types of SMS banking-
Jamuna Bonik Jamuna Jamuna Green Jamuna Jantrik Jamuna
Chalantika Swabolombi
Jamuna Nari Jamuna NGO Jamuna Jamuna
Uddogh Shohojogi Shachchondo Sommriddhi
Table 02: Type of SME banking
Source: Annual Report 2016
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NRB Banking:
Jamuna Bank Ltd is one of the fast growing private commercial bank in the country having wide
Branch & Associate network throughout the Country. All the branches are running with real time
Online and ATM facilities to settle their transaction from remote areas. They have dedicated NRB
Banking Division to ensure personalized services to the valued customers at branch & Head Office
Level. They have an admirable Remittance Tie-up with a good number of world renowned
Exchange Houses and Banks throughout the World to facilitate the Remittance services to the
Beneficiaries. Besides they have 112+ Branches network and 3,000+ ATM outlets (own & shared)
throughout the Country. Their main purpose is to cater to the needs of NRBs & their beneficiaries
offering deposit and loan & investment products and services. Prioritizing the needs of NRBs, they
are in process to offer different personalized products & services by establishing JBL own
Exchange Houses in different Countries like UK, USA, Malaysia, Singapore, Italy, Spain,
Australia, Japan, etc. To serve the NRBs in the best possible manner, Jamuna Bank Limited has
deployed NRB community consultants in Exchange Houses around the globe. They encourage
potential customers to use legal channels to remit their money to the loved ones as well as to invest
their savings in the productive sectors.

NRB Super Savings Taka Deposit A/C:

Deposit Schemes for NRBs and their Beneficiaries in TK
RB Monthly Savings Scheme
NNRB Monthly Benefit Scheme
NRB Double Growth Benefit Scheme (DBS)
NRB Advance Earning Deposit Scheme
NRB Future Plan Deposit Scheme
NRB Women/ Housewife Deposit Scheme
NRB Student deposit Scheme
NRB Triple Growth Benefit Scheme (TBS)
NRB Kotipoti Deposit Scheme
NRB Millionaire Deposit Scheme
NRB Monthly pension Deposit Scheme
NRB Pension Term Deposit Scheme
NRB Education Saving Scheme

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NRB Home Car Deposit Scheme

NRB Wage Earners Deposit Scheme
NRB Home travel Deposit Scheme
NRB Property Deposit Scheme(Land/Apartment)

Retail Banking:
Retail Banking of Jamuna Bank offers wide ranging products and services matching the
requirement of every customer. Transactional accounts, savings schemes or loan facilities from
Jamuna Bank Ltd. Their cooperative & friendly professionals working in the branches will make
customer visit and enjoyable experience. This not only meet financial need of the customer but
also have raised their standard started its retail operation in 2009 and JBL has continued its success.

Islamic Banking:
Besides conventional banking, Jamuna Bank Limited is carrying Islami Banking activities based
on Islami Shaiah principles. The first Islami Banking branch of the Bank opened on October 25,
2003 at Nayabazar in Dhaka. Afterwards its second branch opened on November 27, 2004 at
Jubilee Road in Chittagong. Jamuna Bank Limited is committed to conduct business of its Islami
banking branches strictly complying Shariah requirements. To achieve this goal a Shariah
Supervisory Committee has been constituted with renowned Islami scholars of the country and
senior banker having Islami Banking experiences in depth knowledge of conventional and Islami
Banking. All activities of Islami Banking branches are carried out under the guidance of this
Committee. A separate division has also been created at Head Office.
Islami Banking branches receive deposits under two principles:

Al-Wadeeah principle.
Mudaraba principle.

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1.1.5. CSR activities performed by Jamuna Bank Limited

Jamuna Bank earned mentionable applause in playing important role in the field of Corporate
Social Responsibilities with the object to contributing for the cause of destitute/underprivileged
segment of the society and for socio‐economic development of the country. The onerous task of
fulfilling commitment to the society is commendably undertaken by Jamuna Bank Foundation
since inception in the year 2007. The Bank made provision for Jamuna Bank Foundation at 2.00%
on pretax profit of Jamuna Bank Limited.
Here are followed Corporate Social Responsibility performed by Jamuna Bank Limited foundation
are-
Table 03: CSR activities performed
Anti-Drug Movement Donation Program Medical college & hospital along
Blood with free eye camp and dental
camp
Scholarship giving Providing free treatment Relief distribution for disaster
ceremony affected people
Discussion on significance Sewing training center Blanket and cloth distribution
of Ramadan & lifestyle of among cold-hit distressed people
Prophets
Tree plantation and Donating for development of Monthly donating for BDR
distribution sports for the country tragedy
Annual school sports day Donating in Liberation War Establishment of free primary
and award giving Museum school provides computer training
ceremony by Jamuna Bank foundation

Source: Jamuna Bank Annual report 2016

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2.1. Job Responsibilities

My Job Responsibilities, I started my internship from 1st September, 2017 at Jamuna Bank Limited
(Uttara Branch). I did my intern under the Senior Executive Mohammad Mehedi Al-Suman It was
my privilege to work there and my contributions to this branch are as below.
Basically I worked at Foreign Trade Department in this Uttara Branch. That’s why I had to work
with Export department.

Issuing EXP

Issuing EXP is actually keeping register of export form. For every export, the exporter needs to
fill up export form. The bank keeps register of export form year to year. Following columns are
written in an export register.

Serial number of export form

A number is given for every export form by the bank. Such as 305417040001/ 305417060001/
305417120001 here 3054 is the Bank Branch Swift Code, 04 (local) / 06 (Foreign)/ 12 (EPZ) is
the LC type, 17 is the current year of 2017 and 0001 is the serial number of LC form.

Name of exporter

It might be the individual’s name or company’s name.

Commodity

The details of the goods exporter are exporting.

Amount declared on EXP form

What will be the foreign value of exporting goods is written in the export register. The amount is
written in EXP form.

Date of shipment and Bill Number

On which date the exporter send the goods to the importer is known as date of shipment. Bill
number is the FDBC (foreign document bill collection) number.

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Date of negotiation

Date of negotiation is when the bank gives a forwarding letter with the letter of credit.

Date of realization

On which date the bank received the amount of letter of credit.

Amount realized in foreign currency

This is the foreign value of the currency which the bank received from the importer.

Fill up EXP Form

My other duty in foreign exchange department was to fill up the export form. The name of vessel,
date of shipment, bill of lading number, amount etc. are written in export form. I got all those
information from the documents like Bill of lading, Commercial invoice, Airway bill and Delivery
challan.

Keeping Record of Export Register

Export register is used to keep the record of total export of a company, especially garments
factory. The garments company also issue back to back letter of credit on the export letter of
credit.

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2.2. Function of the Departments

General Banking Department: This department deals with the management of products and
services offered to the individual consumers. Uttara Branch also has general banking facility.
General banking is not the part of corporate office and it usually operates in different branches.

Cash Department: It is an important part of general banking department. In this department the
cash of savings and current accounts receives and also payments are made either in case or transfer
to respective account but Govt. voucher only receive or transfer to Govt. account. As per Govt.
policy no commission is charged but in case of electricity and WASA bills, cash is received and
paid to respective accounts such as DESCO account for electricity bills. Govt. prize bonds are also
purchased and sold in cash department.

Operational Department: The main function of this department is monitoring the overall
performance of the bank in a regular basis and makes important decisions. This division also
carries out various construction activities of Jamuna Bank Ltd. This department is constructed with
high level officers.

Clearing Department: This is the most complicated division of bank. Cheque of other banks or
same bank is received and payments are deposited to Jamuna Bank’s customer accounts. When
cheques are deposited at clearing section with the slip of account details of the account holder is
attached with the cheque, the cheques are sent to clearing house in Bangladesh bank for clearance
where all banks are assigned to present their cheque of other banks.

Accounts Department: The core activity of this division is to prepare financial statements using
standard reporting format following the government policies and guidelines. This department is
also take decision about employee’s salary and bonuses.

Foreign Exchange Department: The department handles dollar endorsement, remittance and also
work with LC (Letter Of Credit). In this type of operation, the department strictly follows guideline
of Bangladesh Bank. Jamuna Bank foreign trade department is very active and generates good
amount of revenue.

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3.1. Industry Analysis

Banking system plays a very important role in the economic life of the nation. The health of the
economy is closely related to the soundness of its banking system (Chowdhury and Kashfia
Ahmed, April 2009). In a developing country like Bangladesh the banking system as a whole play
a vital role in the progress of economic development. A bank as a matter of fact is just like a heart
in the economic structure and the Capital provided by it is like blood in it. Export and Import
facility provided by the banks works as an incentive to the producer to increase the production.
Most of the banks carried on foreign exchange trade. Whether they export or import, it is through
banks that money is transferred from one country to another. For example, bills of exchange and
letters of credit are the regular ways banks use to transfer money

Banking Sector of Bangladesh

Bangladesh adopted state directed credit policy with a view to rehabilitating the economy
immediately after the independence in 1971. Domestic private commercial banks were not allowed
to operate until 1982 and the banking sector was predominantly dictated by government owned
commercial and specialized banks (SPBs). According to Bangladesh Bank Annual report 2016 the
present structure of the financial system in Bangladesh comprises of various types of banks and
they are in the following structure

. Table 04: Banking Industry structure

Non-Scheduled Bank
(6)
Central Bank (Bangladesh
Non-Bank Financial Institutions (33)
Bank)

Scheduled banks (57)

State Owned Specialized Private Commercial Foreign Commercial

Commercial Banks (2) Banks (40) Banks (9)
Banks (6)

Conventional Commercial Bank (32) Islamic Sharia Based Commercial Bank (9)
(32)

Source: Bangladesh Bank Financial system (Banks and Fls) 14

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As of December 2015 there are 56 banks in Bangladesh and the number of bank branches increased
to 9397 from 9040 as of December 2014 due mainly to opening of new branches by the banks
during the year. At the end of June 2016, the total number of bank branches increased further to
9453. (Appendix B)

Generation of banking system in Bangladesh

According to Bangladesh Bank annual report 2016 Banks are divided into three groups according
to their commencement of business. They are familiar in the name of 1st generation, 2nd
generation, 3rd generation banks and 4th generation banks.

Table 05: Generation structure of Bank

1st generation AB Bank, United Commercial Bank, Islami Bank Bangladesh, National Bank,
Bank IFIC Bank, Pubali Bank, The City Bank, Uttara Bank, ICB Islamic
(1971-1990) Bank, Agrani Bank , Janata Bank , Rupali Bank , Sonali Bank , BASIC Bank ,
Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank.
2nd Prime Bank ,Dhaka Bank, Dutch-Bangla Bank, Eastern Bank, Al-Arafah Islami
generation Bank , NCC Bank, Social Islami Bank, Southeast Bank
Bank
(After 1991 to
before 1999)
3rd generation Jamuna Bank, Bangladesh Commerce Bank , Bank Asia, BRAC Bank,
Bank Mercantile Bank, Mutual Trust Bank, First Security Islami Bank, One Bank,
(1999- 2010) Premier Bank, Standard Bank, Trust Bank, EXIM Bank , Shahjalal Bank.
4th Union Bank, Modhumoti Bank, Farmers Bank, NRB (Global) Bank, NRB
Generation Bank, Meghna Bank, Midland Bank, NRB Commercial Bank, South Bangla
Bank Agriculture & Commerce Bank.
(2011- present)
Source BB-2016 annual report

Contribution of Commercial Banks in Bangladesh

The Commercial Banks, as a whole are performing well and contributing to the economic
development of the country (Siddique and Islam, 2001). The average profitability of all

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Bangladeshi banks collectively was 0.09% during 1980 to 1995 but it will be increased year by
year which means that a profit of TK 0.09 was earned by utilizing assets of TK 100. In every aspect
of profit, banking sector contributes the national economy as well as to the individual organization.

3.2. Competitor’s Analysis

Competitor’s Analysis with 5 others Bank

The objective of this report is evaluating Jamuna Bank ltd. financial performance comparing with
other commercial banks of Bangladesh. The peer group selected for comparing includes the best
performing commercials banks such as Mutual Trust Bank, One Bank, Premier Bank, Standard
Bank and Trust Bank. Throughout the report Jamuna Bank and peer groups are analyzed based on
some key financial terms like authorized capital, paid up capital, total assets, total deposit, loans
& advances etc.
Table-06: Current Scenario of 3rd generation bank including
Jamuna Bank & selected 5 Banks Figure In BDT. Million

Jamuna Mutual Premier Bank Standard One Bank Trust

Bank Trust Bank Bank Bank

Year of 2001 1999 1999 1999 1999 1999

Foundation

Total 169,195 165,370 154,580 152,789 188,122 210,241

Asset
Total 112 110 99 112 128 102
Branch
Authorized 10,000 10,000 10,000 15,000 10,000 10,000
Capital
ATM 215 148 102 61 84 187
Booths
Paid-up 6,141 4,431 6,820 7,541 6,636 5,063
Capital
Total 141,550 131,593 125,490 122,553 153,427 114,154
Deposit
Source: Annual Report of 2016 Individual Commercial Bank.

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Justification of Selected the competitor

Banks showed tremendous growth in their balance sheet size and profit and profitability. Overall
qualities of assets and provision against those assets have improved significantly. Banks generated
their operating income from four key sources net interest income, investment income, commission,
exchange and brokerage and other operating income. The objective of this report is evaluating
Jamuna Bank Limited’s financial performance comparing with other commercial banks of
Bangladesh. The peer group selected for comparing includes the best performing commercials
banks such as Premier Bank. Throughout the report Jamuna Bank and peer groups are analyzed
based on some key financial terms like authorized capital, paid up capital and total assets etc.

Total Assets

In 2016 the Total Assets of Jamuna Bank was BDT 169,195.03 million whereas Premier Bank was
BDT 154,580.45 million.

Figure 01: Total Asset

Total Asset
180,000.00
170,000.00
160,000.00
150,000.00
140,000.00
Jamuna Bank Premier Bank
Total Asset 169,195.03 154,580.45

(Source Annual report 2016)

Paid up Capital:

Paid up share capital represents total amount of shareholder capital that has been paid in full by
the ordinary shareholders. Holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to vote at shareholders meetings. In the event of a winding-up
of the company, ordinary shareholders rank after all other shareholders and creditors and are fully
entitled to any residual proceeds of liquidation.

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In 2016 the paid up capital of Jamuna Bank was BDT 6,141 million whereas Premier Bank Ltd
was BDT 6,820 million and Premier Bank Ltd. has the highest paid up capital.

Figure 02: Paid Up Capital

100%

50%
Paid Up capital
0%
Jamuna Bank Premier Bank
Paid Up capital 6,141 6,820

(Source Annual report 2016)

Advantages and disadvantage of Jamuna Bank Ltd.

Table 07: Some advantage and disadvantage of Jamuna Bank

Advantage Disadvantage
 Strong network throughout the country and  Jamuna Bank currently don't have any strong
provide quality of service to every level of marketing activities through mass media such
customer. as television. TV ads play vital role in
 Jamuna Bank ltd has the reputation of being awareness building. Jamuna Bank has no such
the provider of good quality service to its TV ad campaign. Although they do a lot of
potential customers. CSR activities compared to other banks.
 Efficient manpower to discharge faster and  Some of the PCs in this branch have very
quality services that ensures customer outdated hardware which is very slow and
retention as well as customer referral. affects the customers and hence the
 Various Products and Services performance of the bank as a whole. The
 Strong financial position software’s themselves are pretty old
Microsoft Office XP is used. All of these
prevent smooth operations.

Source: During Internship experience and annual report.

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3.3. Analyze Issues based on relevant theory

Financial statement Analysis involves a comparison of a firm’s performance with that of other
firms in the same line of business, which usually is identified by the firm’s industry Classification.
Generally speaking the analysis is used to determine the firm’s financial position so as to identify
its current strengths and weakness and to suggest action the firm might pursue to take advantage
of the strength and correct any weakness.

Project Objective

The main objective of the project is to analyze the financial performance of Jamuna Bank Ltd and
Premier Bank ltd. in the last five years (2012-2016) by using ratio analysis. The objectives of this
report are can identify the strength and weakness of bank based on the financial performance in
the last five years and present my observation and suggestion to the bank.

Financial Performance of Jamuna Bank and Premier Bank

The objective of this report is evaluating Jamuna Bank ltd. and Premier Bank ltd. financial
performance. So that here discuss last five year’s (2012-2016) financial ratio of both bank.

Return on Assets (ROA)

ROA is useful tool to investigate financial position, performance and company’ future predictions.
Besides, assets are well utilized to generate income which is indicated through high percentage of
ROA. The important of ROA in assessing company’s financial position, performance and future
prospects was shown through a survey by Gibson (1987).

The formula for return on assets is: Net Income/ Total Asset

Interpretation

From 2012 to 2016 years data we see that net income and total asset has continuously increased in
Jamuna Bank. For this reason return on total asset ratio has increase in little bite. But due to some
problem in Premier Bank here net total asset has decreased slightly in 2015 then 2014. And this
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decline creates a problem on Return on total asset for Premier Bank. As a result that Premier Bank
is not good condition during the year 2015. So here the return on asset is best position for Jamuna
Bank because a higher ratio means better managerial performance and efficient utilization of the
assets of the firm. Here the more utilization of assets can create more profit which will be better
for a Jamuna bank. After in 2013 to till 2015 Premier Bank are unable to generate higher profits
because of not utilizing their assets in a proper way. By comparing the ratio here Jamuna Bank
Ltd. has overall good performance of the management in 2016.

Figure 03: Return on asset ratio

1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
2012 2013 2014 2015 2016
Jamnuna Bank 1.06% 1.01% 1.06% 1.16% 1.21%
Premier bank 0.78% 0.93% 0.86% 0.79% 1.11%

(Source Annual report 2016) (Appendix A)

Earnings per Share (EPS)

Earnings per share (EPS) is the portion of a company's profit that is allocated to each outstanding
share of common stock, serving as an indicator of the company's profitability
The EPS is computed by dividing the company's earnings for the period by the average number of
shares outstanding during the period. Stock analysts regularly estimate future EPS for listed
companies and this estimate is one major factor that determines the share's price. (Gopinathan
Thachappilly, 2009)
EPS is calculated as:

EPS = net income ÷ average outstanding common shares

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Interpretation

The graph shows that the highest payout was made by Jamuna Bank in 2016 and after which it
kept its position in the market as the most efficient in among the Premier Bank. Moreover, it can
be said that the EPS of Premier Bank are more volatile as their fluctuation is of great proportions
in 2016. For this ratio higher score will be provided to the organization with higher percentage as
higher percentage means higher efficiency of the organization.

Over the last five years EPS has an increasing trend for both Banks. EPS of Jamuna Bank gradually
improved year to year. Per share income was only Tk. 2.32 in 2012 and in 2016 it increased by
almost Tk. 0.74 leading to an EPS of Tk. 3.06. Furthermore, it went up in years of 2013, 2014 and
2015 respectively Tk. 2.53, 2.61 and 2.67 that indicates positive result for Jamuna Bank
shareholders. This increase occurred only due to rise in net income since the common shares of
the company stood constant throughout the five years.

So here Jamuna Bank is much improvement from the last 5 years. By comparing the EPS here
Jamuna Bank Ltd. has overall good financial position.

Figure 04: Earning Per share

3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
2012 2013 2014 2015 2016
Jamnuna Bank 2.32 2.53 2.61 2.67 3.06
Premier bank 1.31 1.55 1.53 1.41 2.33

(Source Annual report 2016) (Appendix A)

Book Value per Share

The shift in value relevance from earnings to book values can be explained by the increasing
significance of one-time items, the increased frequency of negative earnings and changes in
average firm size and intangible intensity across time (Collins et al).

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Formula:

Book Value Per share = (Total Shareholder Equity-Preferred Equity) / Total Outstanding Shares

Interpretation

If any company increases the book value per share it can say that the bank is now at the healthy
position. More the book value per share more the better for banks.

The book value per share was highest in the year of 2016 for both banks. Due to the increase in total
number of securities and types of securities purchase the book value increase in Jamuna Bank over
the time from 18.55 to 25.81/ Taka and Premier Bank over the time from 15.37 to 17.47/ Taka.

Here the both companies increase the book value per share from the last 5 years. It indicates the
healthy position for both Banks in the market because both banks have increase book value per share.
But the Jamuna Bank are more than increase compares then the Premier Bank

Figure 05: Book Value per share

30.00
25.00
20.00
15.00
10.00
5.00
0.00
2012 2013 2014 2015 2016
Jamnuna Bank 18.55 19.79 20.95 25.58 25.81
Premier bank 15.37 15.63 15.89 17.22 17.47

(Source Annual report 2016)

(Appendix A)

Loan- Deposit ratio

The main activity of bank is using the funds (deposits) effectively by the way of lending (financing).
In general the loan-deposit ratio is measures bank’s liquidity as well as profitability of the bank
(Michael Taillard,)

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Loan to deposit is the most important ratio to measure the liquidity condition of the bank. Bank with
Low LDR is considered to have excessive liquidity, potentially lower profits and hence less risk as
compared to the bank with high LDR. However, high LDR indicates that a bank has taken more
financial stress by making excessive loans and shows risk that to meet depositors’ claims bank may
have to sell some loans at loss. LDR is calculated as LDR= Loan/Deposit

Interpretation

A high LDR indicates two things, firstly the bank is issuing out more of its deposits in the form of
interest bearing loans and secondly the bank generates more income. Here the problem is failure in
repayment of loan, in such a case the banks liable to repay the deposit money to their customers, so
the ratio is too high puts the bank at high risk. Alternatively a very low ratio means bank is at low
risk, on the same time it is not using assets to generate income. From the last five year average
calculation here the LDR indicate that the Jamuna Bank and Premier bank is failure in repayment of
loan, in such a case the banks liable to repay the deposit money to their customers so the average
higher ratio compare to Jamuna Bank here is holding on to unproductive capital and earning less than
it should.
Figure 06: Loan deposit ratio

100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2012 2013 2014 2015 2016
Jamuna Bank 68.93% 69.41% 67.95% 73.41% 82.73%
Premier Bank 77.78% 70.76% 77.21% 83.87% 90.56%

(Source Annual report 2016) (Appendix A)

In perspective of bank total deposits percentage of total loans calculate. Higher the ratio means less
liquid and taking more risk. So bank has to maintain certain ratio for following the central bank policy
and keep sustainable position in the competitive market. Premier Bank total loan against deposit was
90.56% in 2016 which reached highest point around this period and minimum 70.76 % in year 2013.

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On the other side Jamuna Bank total loan against deposit was 82.73% in 2016 which reached highest
point around this period and minimum 67.95 % in year 2014. Lower rate of ratio means more liquidity
of bank. According to above graph indicate that is Jamuna Bank current LDR well consistent compare
to Premier bank in the year of 2016. Liquidity position of this bank improved the ratio that refers
bank has more liquidity than other time compare to present

Deposit Growth Rate

Deposit growth gives investors a sense of how much lending a bank can do. There are some important
factors to consider with this number. First, the cost of those funds is important, a bank that grows its
deposits by offering more generous rates, is not in the same competitive position as a bank that can
produce the same deposit growth at lower rates.

Figure 07: Average Deposit Growth Rate

Average Growth Rate

40.00%
30.00%
20.00%
10.00%
0.00%
Deposit
Jamuna Bank 15.70%
Premier bank 34.01%

(Appendix C)

Total Customer deposits of Jamuna Bank ltd. were on average 15.70% and Customer deposits of
Premier bank were on average 34.01% (Figure 07) Customer deposits of the Premier Bank grew by
23.39% in 2014 (Figure 08) which was the fastest growth over the period of years. The growth rate
of Premier Bank deposit has increased at decreasing rate. Currently, the Bank's deposits mostly
comprise of term deposits. Moreover, in 2016 the customer deposit of Jamuna Bank grew by 19.10%
and loan amount was almost increasing which indicate that the Jamuna Bank LTD. granted more loan
to the borrowers as a percentage of total deposit.

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Figure 08: Deposit Growth Rate

Deposit Growth Rate

25.00% 25.00%

20.00% 20.00%

15.00% 15.00%

10.00% 10.00%

5.00% 5.00%

0.00% 0.00%
2013 2014 2015 2016
Jamuna Bank 22.43% 17.59% 3.68% 19.10%
Premier bank 9.38% 23.39% 20.11% 15.45%

(Source Annual report 2016) (Appendix C)

Interpretation

Figure 08 shows the deposit growth of Jamuna Bank and Premier Bank from 2012 to 2016. The
deposit of Jamuna Bank is decreasing form 2013 to 2015 but in 2016 deposit growth increasing
from 3.68% to 19.10% and in 2015 deposit growth rate was 3.68% because of Jamuna Bank total
deposit was fallen in 2015 interest rates have been trending downwards over the last years . For
consumers, this meant cheaper loans, but yields on bank deposits have also fallen the deposit is
heart of running the banking activities Jamuna Bank Limited deposit growth is good in 2016. The
deposit of Premier Bank is decreasing form 2013 to 2016 and deposit growth decreasing from
23.39% to 15.45% which mean Premier Bank Limited deposit rate is low.

Loans & Advances Growth Rate

Total growth of loans and advances of Jamuna Bank ltd. were on average 21.16% and loans and
advances of Premier bank were on average 22.17% (Figure 09). From the (Figure 10) It is very
clear that an increasing upward trend for Jamuna Bank in 2016. So, in 2016 Jamuna bank’s loans
and advances is increasing which makes their investment capability is adequate.

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Figure 09: Average Loan Growth Rate

Average Growth Rate

22.50%
22.00%
21.50%
21.00%
20.50%
Loan
Jamuna Bank 21.16%
Premier bank 22.17%

Figure 10: Loan Growth rate

Loan Growth Rate

40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2013 2014 2015 2016
Jamuna Bank 23.29% 15.12% 12.01% 34.21%
Premier bank 1.13% 32.23% 30.65% 24.67%

(Appendix C)

Interpretation

Loan growth refers to the year-over-year change of the overall commercial banks credit to the
economy, including food credit, non-food credit and loans, cash credit and overdrafts. This graph
(Figure 10) provides the last five years (2012-2016) reported value for Jamuna Bank and Premier
Bank Loan Growth. In 2013 Premier bank loan growth was default there are many reason for
default loan one of the main reason is any demand loan if not repaid or renewed within the fixed
expiry date for repayment or after the demand by the bank will be treated as past due/over from
the following day of expiry. In this analysis Jamuna Bank Loan growth rate 34.21% which indicate
that the Investments are the core asset of a bank. The bank gives emphasis to acquire quality asset
and does appropriate lending risk analysis and follow all the terms and condition all sorts of
investments to client.

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3.4. Recommendation

I successfully completed in a three months long internship and a big portion of these three months I spend
most of time in foreign exchange department. On the basis of my observation I would like to present the
following recommendations-
They should make their services decentralized rather than centralized, so that the process of LC as
well as the loan approval will not be time consuming and they will be able to give faster and updated
service to the clients.
They should increase the number of AD Branches in all over the country with the permission of
Bangladesh Bank. Thus, the clients in every city can enjoy their foreign trade from their own city.
The consistent and increasing growth trend of the above mentioned performance indicators has
increased depositors' confidence as well as good will/reputation of the bank to a great extent and these
have contributed to increase the shareholders’ value.
They should try to raise the more deposit ratio carrying higher productivity in future
They should maintain more cash and deposit balances with other banks. Because it is desirable that
banks keep their cash and balance with other bank to such extent so that it can minimize the chance
of liquidity crunch.
Paid up capital of JBL were increasing trend and they should keep focus to increase capital in order
to maintain their solvency.
The JBL ROA was deceasing mood of year 2013 and in worst position in 2013. So the JBLs should
manage its investment in asset by proper utilization to generate their profit
EPS increasing up to 2016 that indicates very good sign for JBL, which can attract investor and
management should concentrate to stay foot in good ground. To attract the investor JBL should try
more to increase its EPS.
Sufficient number of ATM booth might be established in different location to reach out he customers
even further and satisfying their demand.
Improvement in customer service is very much essential. To compete with other banks, customer
service should be improved as online service, internet service, 24 hours customer service etc. New
technologies should be taken for effective services.

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4.1. Conclusion

The banking service of the JAMUNA Bank Limited is getting modernized day by day. The customers are
choosing JAMUNA Bank Limited as their best services and low charges among other commercial banks.
Day by day JAMUNA Bank Limited increases their banking systems. They try to give the best service to
their customer. JAMUNA Bank ltd. increase its customer service and the image has put excellent effect
on consumer minds its customers are growing rapidly .There was a time when people of Bangladesh didn’t
trust the private banks but the sincere and excellent service of JAMUNA Bank Ltd. made difference.
Though I am facing some problems and limitations but I enjoyed my work and worked in JAMUNA Bank
Limited is gaining theoretical knowledge as well as practical knowledge. This is not possible in the
classroom study. To prepare my internship report, I think I can gather more information and get better
experience in work in Foreign and Exchange department. I think it is one of the best private banks.
JAMUNA Bank Ltd. is very concern about the customer care. Transaction is doing very smoothly and
interest rate is also good. Finally, I can say JAMUNA Bank Limited operates very well day by day.

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4.2. Implication

I successfully completed my internship at Jamuna limited Uttara Branch under the foreign Trade
Department. In my internship period, I have worked with export, import. Through this working, I have
learned lots of thing about import, export which will be very helpful in my future step.

a. Build up Communication: An internship helps you build a network of contacts in our field.
Through networking, anyone may hear about suitable job openings and develop mutually
beneficial relationships.

b. Knowing about Corporate World: Internship program is the entrance of corporate world for
students. Through internship, I learn how to behave with clients, how to manage work pressure on
time and how to adjust with corporate culture.

c. Ability of Interact: In my internship period, I have deal with different kinds of people. I had to
deal with different clients, abide by seniors rules and solve different types of problems.

d. Getting Job: One of the recurring themes in any entry level job search is the lack of experience
factor is "Where do I get experience if no one is willing to hire me?" The answer is simple: Get an
internship.

e. Leadership and Skill Development: Internship is the way of Learn new skills and add to your
knowledge base while gaining confidence in your abilities, Opportunity to practice communication
and teamwork skills, gain industry knowledge first hand from an organization and professionals.

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References

Gibson, H. & Charles, H., 1991, Financial Statement Analysis, Cincinnati, OH: South-Western College
Publishing, p. 261.

Chowdhury, Tanbir Ahmed., and Kashfia Ahmed (April, 2009), “Performance Evaluation of Selected
Private Commercial Banks in Bangladesh”. International Journal of Business and Management, vol. 4,
No. 4

Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2014, Vol. 2
No. 5, 121-129

Thachappilly, Gopinathan. (2009). “Profitability Ratios Measure Margins and Returns: Profit Ratios Work
with Gross, Operating, Pretax and Net Profits”. Journal of profitability ratio measure margin and return.

Weygandt, J. J, Kieso, D. E, & D, Warfield Terry (2001). “Intermediate accounting: cash ratio analysis”.
(10thed.). Bearcat Company, Vol-1.p.211.

Collins, D. W., Maydew, E. L., & Weiss, I. S. (1997). Changes in the value-relevance of earnings and
book values over the past forty years. Journal of Accounting & Economics, 24(1), 39.

Loan to deposit -- Pamuji Gesang Raharjo, Dedi Budiman Hakim et.al., 2014., The Determinant of
Commercial Banks’ Interest Margin in Indonesia: An Analysis of Fixed Effect Panel Regression.
International Journal of Economics and Financial Issues. 4(2) 295 – 308

Siddique, S. H., and Islam, A. F. M. M. (2001). “Banking Sector in Bangladesh: Its Contribution and
Performance”. Journal of Business Research, Jahangirnagar University, Vol. 3, Retrieved August 16, 2015
from:

Financial Performance of Palestinian Commercial Banks. International. Journal of Business and Social
Science, 3, 175-184.

Samad, A. (2008). Market Structure, Conduct and Performance: Evidence from the Bangladesh Banking
Industry.

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Chowdhury, A. (2002). Politics, society and financial sector reform in Bangladesh. Intenrational Journal
of Social Ecorronlics. 29(12), 963-988.

Chowdhury, T A., and Ahmed K (April,2009), “Performance Evaluation of Selected Private Commercial
Banks in Bangladesh”. International Journal of Business and Management, vol.4, No.4. Retrieved From

Hanson S.G., Kashyap A.K., Stein J.C. (2011) A macroprudential approach to financial regulation. Journal
of Economic Perspectives 25, pp. 3–28. doi.org/10.1257/jep.25.1.3

Brigham Eugene F. dan Houston Joel F, (2005), Manajemen Keuangan, Edisi kesepuluh, Buku Satu,
(Terjemahan Ali Akbar Yulianto). Erlangga : Jakarta.

Zarowin, P. (1990). What determines earnings-price ratios: Revisited. Journal of Accounting, Auditing,
and Finance, 5(2), 439-454.Carl Warren, J. R. (2012). Corporate Financial Accounting. Cengage Learning

Stanley, B. b., & Geoffrey, A. H. (2008 - 2009). Foundation of Financial Management. International:
McGraw-Hill

Brigham, E. F., & Gapenski, L. C. (1995). Intermediate Financial Management (Fifth ed.). International:
The Dryden Press.

Khrawish H.A. Determinants of Commercial Banks Performance: Evidence from Jordan. International
Research Journal of Finance and Economics. 2011; 5(5): 19-45.

Ross, Westerfield and Jaffe “Corporate Finance” 10th Edition (2010),

McGraw Hill. Block & Hirt,”Foundations of Financial Management” Thirteenth Edition, McGraw Hill.

Gitman, L J & Joehnk, M D; 2014, Fundamentals of Investing; 12th Edition; Pearson.

Bodie Z. Kane A. & Marcus A; 2013, Investments, 10th Edition, London: McGraw-Hill and Irwin.

Ross, S. Peter & Hudgins, C. Sylvia “Bank Management & Financial Services” 7th Edition (2008)
McGraw Hill

Mishkin, Frederic S., and Eakins, Stanley G. “Financial Markets and Institutions” 6th Edition

Choudhury, Toufic A. 2004. “Private Banking In Bangladesh”. Bangladesh Institute Of Bank

Management .(Mime)

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Reports:

Guidelines for Banking Industry Volume 1 and 2,Bangladesh Bank Annual Report 2016, Dhaka,
Bangladesh

Jamuna Bank Annual report 2016, 2015, 2014, 2013, 2012

Premier Bank Annual report 2016, 2015, 2014, 2013, 2012

Mutule Trust Bank Annual report 2016

Standard Bank Annual report 2016

One Bank Annual Report 2016

Trust Bank Annual Report 2016

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Appendix A
JBL RATIO ANALYSIS

Return On Asset 2012 2013 2014 2015 2016

Net Income 1,042.05 1,135.19 1,347.12 1,642.46 1,876.36
Average Total 98,372 112,421 127,329 141,177 155,639
Asset
Ratio Analysis 1.06% 1.01% 1.06% 1.16% 1.21%
Earnings Per 2012 2013 2014 2015 2016
share
Net profit after tax 1,042,052,580 1,135,191,520 1,347,107,721 1,642,467,855 1,876,362,696
No. of ordinary 448,753,662 448,753,662 516,066,711 614,119,386 614,119,386
shares outstanding
EPS 2.32 2.53 2.61 2.67 3.06
Book Value Per 2012 2013 2014 2015 2016
share
Market Value -1408.56 1570.8 4468.17 8,283.64 6,262.24
Added
Total Number of 448.75 448.75 516.07 614.12 614.12
share outstanding
Total Value -3.138852368 3.500389972 8.658069642 13.48863414 10.19709503
Market Value per 21.69 16.29 12.29 12.09 15.61
share
Book Value Per 18.55 19.79 20.95 25.58 25.81
share
Loan to deposit 2012 2013 2014 2015 2016
Total Loan 54,887.03 67,669.38 77,899.79 87,252 117,100
Total deposit 79,623 97,486 114,635 118,849 141,551

Loan to deposit 68.93% 69.41% 67.95% 73.41% 82.73%

Premier Bank Ratio Analysis

Return on 2011 2012 2013 2014 2015 2016

asset
Net Income 608.32 796.36 863.76 961.2 1,587.08
Total Asset 74951.1 81,736.25 88,738.51 110,984.04 131,265.51 154,580.45
Average 78343.68 85237.38 99861.275 121124.775 142,922.98
Total Asset
ROA 0.78% 0.93% 0.86% 0.79% 1.11%
Loan to 2012 2013 2014 2015 2016
deposit
Total Loan 52,210,156,853 52,697,135,148 70,063,724,793 91,318,508,129 113,777,562,064.00
Total 67,129,517,799 74,469,913,481 90,750,056,737 108,875,127,732 125,640,370,898.00
deposit
Loan to 77.78% 70.76% 77.21% 83.87% 90.56%
deposit

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Prime Bank EPS and Book Value Per share

2012 2013 2014 2015 2016

EPS 1.31 1.56 1.53 1.41 2.33
Book value per 15.37 15.63 15.89 17.22 17.47
share
Source: Premier Bank annual report 2016
Appendix B

Appendix C
Loan and Deposit Growth rate

Jamuna 2012 2013 2014 2015 2016 Average

Bank Rate
Total loan 54,887.03 67,669.38 77,899.79 87,252.28 117,099.61
Total loan 23.29% 15.12% 12.01% 34.21% 21.16%
Growth rate
Total deposit 79,623 97,486 114,635 118,849 141,551
Deposit 22.43% 17.59% 3.68% 19.10% 15.70%
Growth rate

Premier 2012 2013 2014 2015 2016 Average

bank Rate
Total loan 52,210.16 52,800.46 69,818.14 91,217.45 113,723.81
Total loan 1.13% 32.23% 30.65% 24.67% 22.17%
Growth
rate
Total deposit 67,058.55 73,348.72 90,503.76 108,700.54 125,490.12
Deposit 9.38% 23.39% 20.11% 15.45% 34.01%
Growth
rate

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Lists of Tables
Table 01: Organizational structure of JBL Bank Limited

Table 02: Type of SME banking

Table 03: CSR activities performed

Table 04: Banking Industry structure

Table 05: Generation structure of Bank

Table-06: Current Scenario of Jamuna Bank & other 3rd generation selected 5 banking industry

Table 07: Some advantage and disadvantage of Jamuna Bank

List of Figure
Figure 01: Total Asset

Figure 02: Paid Up Capital

Figure 03: Return on asset ratio

Figure 04: Earning Per share

Figure 05: Book Value per share

Figure 06: Loan deposit ratio

Figure 07: Average Deposit Growth Rate

Figure 08: Deposit Growth Rate

Figure 09: Average Loan Growth Rate

Figure 10: Loan Growth rate

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