Faculty of Business Administration

Assignment
on

FIN 533: Financial Management

Topics: Evaluation of Financial Performance of Jamuna Bank Ltd.

Prepared For
Md. Akram Hossain
Lecturer
Faculty of Business Administration
Sonargaon University
Submitted By (Group - Rose):
1. Farjana Akter
Student ID: MBA (BBA) 1603009007
2. Ala Uddin
Student ID: MBA (BBA) 1603009008
3. Partho Sharathi Dhar
Student ID: EMBA 1602008001
4. Mizanur Rahman
Student ID: EMBA 1602008003
5. Md. Morad E Maola Sohel
Student ID: EMBA 1602008004
6. Mohammad Fazle Rabbi
Student ID: EMBA 1602008005
7. Mahmuda Feroz
Student ID: EMBA 1602008006
8. Khondoker Md. Rashidul Islam
Student ID: EMBA 1602008008
9. Jannatul Fardiusi
Student ID: MBA 1602008009
Section: MBA (BBA) & EMBA
Trimester: Spring 2017
Program: Master of Business Administration Faculty of Business Administration,
Sonargaon University
Date: 31/03/2017
Executive Summary

Today, Private Commercial banking is considered as a service industry. In the process of

conducting its own activities to achieve its own goal, like making profit, a commercial bank
gives services to all types of customers. Actually, to culled saving from the general customer is
the normal function of all commercial bank. But the important activities of commercial banking
are sanctioning loan of different business organization to continue their business activities.
Among these activities, loan & advance and trade finance activities are the basic activities of all
commercial bank.

In my study, I tried to identify all the key indicators of financial performance evaluation of the
JBL. This is quiet helpful for the investors, borrowers and other affiliated parties of the bank. In
this report, the general activities of JBL and its various products are also discussed.

And finally, this report points out some very important strength as well as the weaknesses of the
bank. The findings on some very important issues arid recommendations for the bank are also
available at the end of the report. This report will help the bank management to improve the
financial position and its overall performance to compete the existing & upcoming Banks in
Bangladesh.

1.1 Introduction
Due to globalization and expansion of international business, finance plays the major roles for
the economic development. The development of a modern economy would not have been
possible without the use of money. A fundamental characteristic of money is that it is like a
collective commodity. There is a parallel relationship between the money and banking. Bank is
an important and essential financial institution for the necessity of the use of money and the
protection of the money.

At the very arena of globalization and technological innovation, banking business has become
more competitive. To cope up with this, bankers should have huge theoretical knowledge and
professional skill as well as technical basis. As a BBA student, I felt that banking is an excellent
area to gather some practical knowledge. I have selected the Jamuna Bank LTD, one of the
prominent banking institutions of the Bangladesh, to acquire some practical experience in
banking, especially in the correspondent banking program.
It would not be out of place to mention here that during the course of the program I had to
perform several duties. Before going to the main report I would like to mention that it was not
possible for me to cover the entire activity of the more than 100 years old banking organization
in the given limited time.

1.3 Statement of the problem:

Banking is not a new idea or proposition to the people of Bangladesh. In a developing country
like Bangladesh, different banking institutions are playing a very crucial role in the economic
growth. There are many private commercial banks which are operating their business in
Bangladesh. Competition between private commercial bank is increased day by day. So now a
day it is very hard to decide as an investor where to invest money. For this reason it is very much
essential to know the financial position of the bank. However this study focused on the financial
performance of the Jamuna Bank Ltd to identify banks financial data analysis or change in year
by year.

1.4 Literature Review:

Bank performance in general can be evaluated using financial ratios such as liquidity ratios,
profitability ratios and others (Sabi, 1996; Saleh and Zeitun, 2007; Samad and Hassan
1999).Competition in the private banking sector has increased, mainly due to various internal
factors such as the banks management policy, firm ownership structure, investment and
expenditure policies and external factors such as political environment, technological
advancement etc. Such competition influences the growth and performance of these banks. A
diligent measurement or monitoring of the financial performance of private banks can help to
determine the banks potential capacity and prospects. With respect to the Performances of
Bangladeshi Commercial Banking sector, foreign and national experts undertook number of
studies. Some of the notable ones are: Munuswamy and Mohamed (2012), Bhattacharya (2007),
Chowdhury and Islam (2007), Chowdhury (2002), Siddique and Islam (2001), Al-Shamrnari and
Salirni (1998), Avkiran (1997), Bhatt&Ghosh (1992), Hossain&Bhuiyan (1990),
Swamy&Vasudevan (1985), Ahmed &Jamsheduzzaman (1985).
In measuring performance level of a bank Swamy and Vasudevan (1985) used per employee,
deposits, advances, profits, etc.
Hossain and Bhuiyan (1990) stated that there is no universally accepted operational definition of
performance measures. In broad sense performance level of an enterprise can be measured by the
extent of its organizational effectiveness.
Bhattacharya (2007) pointed out that six major recent policy measures include: reduction of bank
rate and lending rate, linking classified loans to large loan sanctioning; rationalization and
merger of bank branches, measures for loan recovery, and demarcation of responsibilities
between the management and the board and decision on cash reserve ratio.
Munuswamy and Mohamed (2012), ratio analysis is simply a postmortem analysis of past
financial data, an effort has been made to know whether and to what extent different ratio affects
profitability and productivity of the selected banks through correlation analysis, followed by
regression analysis comparing performances of different selected private sector banks and a
forecast of the future trend is also deduced.

1.5 Scope of the Study

The field of my study is the operation of Mymensing branch of Jamuna Bank Ltd. For
conducting this study an overall knowledge of the total banking system will necessary because
the departments banking are linked with each other due to some partial proceeding. The scope of
the organization part covers the organization structure, background, objective, function,
departmentalization and business performance of JBL as a whole. In twenty-first centurys world
without banking, any organization cant run in any moments. Basically my topic is Financial
Performance evaluationof Jamuna Bank Limited Here knowing scope is available but time
is very short.

1.6 Objectives of the Study

Objectives of the study are summarized in the following manner.
General objectives:
The general objective is to prepare and submit a report on Financial Performance
evaluationofJamuna Bank Limited to fulfill the requirement of the course curriculum.
Specific objectives:
To apply theoretical knowledge in the practical field.
 To know the financial performance of the bank.
To examine the profitability and productivity of the banks.
To know the financial drawback of the bank.
To assess the strength and weakness of the bank.
To identify possible areas of improvement in JBL.
1.7 Methodology of the Study
At the time of my internship period, I tried to use both primary and secondary data that I have
gathered from different sources. For preparing this report primarily I got some data from face to
face conversation of different employees of JBL mymensingh branch and some from different
reports and features of the bank. Sometime I have undergone group discussion, asked some
questionnaires to the responsible officer of that work and interviewed with some of them. I
observed different parties and their transaction from a very close eye. All of this observation and
data are included in this report.
Source of data:
These sources are as follows:
Primary sources of data:
Primary data are collected through two ways. These are:
a) Questionnaire:Some primary data are collected by taking interview and by discussion with the
executives and officer of JBL.
b) Observation: Here primary data are collected through spending three month in the JBL during
the working hour. Here I observed the financial performance of JBL.
Secondary sources of data:
Secondary data are collected from the following sources:
a) Annual reports of JBL
b) Published documents
c) Official files
d) Data available with the website of JBL.
e) Different publication of Bangladesh bank and Bangladesh economic reviews.
f) Newspaper articles

1.8 Limitation of the Study

Every matter has got some limitation. So this is also not an exception. The limitations of this
internship report are stated below:

Due to time and cost restriction, the study is concentrated in selected areas. To continue
study in such a vast are requires a big deal of time. As an internee I had only three month
which is not enough.

As a financial organization a bank has some restriction to serve all the real data of the
bank to the general people as a result the study is mostly depends on official files and
annual reports.

Available data also could not be verified. In most cases I simply did not have any option
but to furnish with data without verification.

JBL as a commercial bank so that they are very busy and they could not able to give me
enough time for discussion about various topics.

The study does not cover critical analysis and implementations of comparative study in
an intensive manner.

2.11 At a glance of JBL

Table: Highlight of the overall activities of the bank

Sl. Particulars 2013 2012

No.
1. Paid up capital 4,487,536,620 4,487,536,620

2. Total capital 9,259,799,464 8,605,282,802

3. Capital surplus-deficit 917,661,619 1,560,422,892

4. Total asset- Excluding of balance sheet items 115,681,641,283 109,678,508,741

5. Total deposit 97,485,614,200 79,623,134,457

6. Total loans and advance 67,669,376,700 54,887,033,981

7. Total contingent liabilities and commitments 29,234,226,956 28,155,995,450

8. Advance deposit ratio 69.41% 68.93%

9. % of classified loans against total loans 7.59% 9.73%

10. Profit after taxation and provision 1,135,191,520 1,042,052,580

11. Amount of classified loans 5,133,754,000 5,337,873,265

12. Provision kept against classified loans 2,256,676,728 2,769,206,330

13. Cost of fund( deposit cost and O/H cost) 12.32% 12.96%

14. Cost of deposit 9.36% 9.98%

15. Interest earning asset 71,948,361,892 58,969,036,472

16. Non-interest earning asset 43,733,279,391 50,709,472,269

17. Return on asset (ROA) 0.98% 0.95%

18. Return on investment ( ROI) 10.04% 7.43%

19. Income from investment 3,330,359,597 2,007,153,898

20. Earnings per share (Taka) 2.53 2.32

21. Net asset value per share 19.79 18.55

22. Net income per share 2.53 2.32

23. Market value per share 16.30 21.70

24. Price earnings ratio 6.44 9.34

Source: The Daily Financial Express newspaper
2.12 Five years Key Financial Data:
Table: Income Statement Information

BDTin Million

Particulars 2009 2010 2011 2012 2013

Net interest income 900.16 1481.00 2162.85 1839.20 949.82
Total operating income 2927.98 3741.57 4863.89 5285.11 5635.65
Total operating expenses 1013.74 1335.60 2046.49 2078.22 2666.74
Profit before provision 1914.24 2406.29 2817.39 3206.89 2968.90
Total profit before taxes 1563.20 2064.89 2470.00 2080.52 2284.89
Net profit after taxation 923.12 1066.36 1330.19 1042.05 1135.19
Earnings per share(EPS) 4.14 4.78 2.96 2.32 2.53
Source: Annual report of JBL

Table: Balance sheet Information

BDT in Million

Particulars 2009 2010 2011 2012 2013

Authorized Capital 4000.00 10000.00 10000.00 10000.00 10000.00
Paid up capital 1621.88 2230.09 3648.40 4487.54 4487.54
Total shareholder equity 3980.88 6408.19 7281.51 8324.83 8880.93
Deposit 42356.20 60673.56 70508.04 79623.13 97485.61
Total liabilities 44750.08 63605.71 79783.62 101353.68 106800.70
Total liabilities and share 48730.96 70013.90 87065.13 109678.51 115681.64
holder equity
Other liabilities 2270.84 3473.31 3524.86 4642.33 5637.81
Loans and advance 32287.66 49734.80 56611.79 54887.03 67669.37
Investment 8503.44 10891.02 16214.92 39119.93 31392.19
Fixed assets 681.59 1822.66 1971.71 2082.03 2195.05
Total asset 48730.95 70013.90 87065.13 109678.51 115681.64
Source: Annual Report of JBL.

Financial ratios at a glance

Ratios 2009 2010 2011 2012 2013
(%) (%) (%) (%) (%)
Return on Asset=net income/ Average 2.30 1.80 1.69 1.06 1.00
total asset
Return on equity=net income / average 30.06 20.52 19.43 13.35 13.11
shareholder equity
Return on deposit= net income/ 2.65 2.07 2.02 1.38 1.28
average total customer deposit
Net profit margin=net income / 35.53 28.5 27.35 19.72 20.14
operating income
Net operating margin=operating 50.52 46.26 33.24 33.31 30.60
profit /interest income
Current ratio= current asset/ current 0.97 1.17 1.21 1.59 1.66
liabilities
Debt to equity ratio= average total 12.08 10.52 10.47 11.62 12.10
liabilities/ average stockholder equity
Total debt to asset= average total 0.923 0.912 0.913 0.921 0.924
liabilities/ average total asset
Equity multiplier= average total asset/ 13.08 11.42 11.47 12.60 13.09
average stockholder equity
Operating expense to asset=operating 2.25 2.24 2.60 2.11 2.36
expense/ average total asset
Operating income to asset= operating 7.28 6.30 6.19 5.37 5.00
income/ average total liabilities
Operating expense to revenue= 34.62 35.69 41.46 39.32 47.31
operating expense/ operating income
Asset turnover= interest income/ 9.42 8.76 10.78 9.78 8.61
average total asset
Dividend per share= dividend / no. of 37.69 26.54 18.85 19.31 21.35
share
Earnings per share= net profit after 5.69 4.78 3.65 2.32 2.53
tax/no. of share
Net asset value= (total asset- total 24.54 28.74 19.96 18.55 19.79
liabilities)/issued common share

Source: Annual report of JBL

4.1.1 Return on asset (ROA):
The rate of return on asset (ROA) measures the ability of management to utilize the real and
financial resources of the bank to generate returns. Return on asset is most commonly used to
evaluate bank management.
Return on asset =

Table:Return on asset TK. in BDT Million

Year 2009 2010 2011 2012 2013

Net income 923.12 1066.36 1330.19 1042.05 1135.19
Average 40188.79 59372.43 785399.52 98371.82 112680.07
total asset
ROA 2.30 1.80 1.69 1.06 1.00
Source: Annual report of JBL

Graph:

Interpretation:

Above figure represent the return on asset ratio of JBL and we see that in the year 2009, JBL was
in highest profitability position. Return on asset was decreased continuously over the period;
Return on asset in 2009 was 2.30 million and in 2013 was 1.00 million. To improve the ratio,
JBL has to increase the net income and control average total asset.

4.1.2 Return on Equity (ROE):

Return on equity indicates the rate on return on equity capital. Generally bank stock holders
prefer return on equity to be high.

Return on equity =
 Table: Return on Equity

TK. in BDT Million

Year 2009 2010 2011 2012 2013

Net income 923.12 1066.36 1330.19 1042.05 1135.19
Average 3070.80 5194.7 6845.02 7803.16 8602.87
stockholders Equity
ROE (%) 30.06 20.52 19.43 13.35 13.11
Source: Annual report of JBL

Graph:

Interpretation:

From the table we can see that Return on equity was decreased continuously from 2009 to 2013.
In 2009 it was 30.06 million and in 2013 it was 13.11 million. To improve the ratio, JBL has to
increase its net income more than average common stock holders equity.

4.1.3 Return on Deposit (ROD):

This ratio shows the total return which the business gains from the total deposit, so it should be
high which will be better for the business.
Return on deposit =

Table: Return on deposit

TK. in BDT Million

Year 2009 2010 2011 2012 2013

Net income 923.12 1066.36 1330.19 1042.05 1135.19
Average total customer 34832.07 51514.88 65590.8 75065.58 88554.37
Deposits
ROD (%) 2.65 2.07 2.02 1.38 1.28
Source: Annual report of JBL

Graph:

Interpretation:

Above figure represent the return on deposit ratio of JBL and we see that in the year 2009, JBL
was in highest profitability position. Return on deposit was decreased continuously over the
period; ROD in 2009 was 2.65 million and in 2013 was 1.28 million.

4.1.4 Net Profit margin(NPM):

Net profit margin ratio establishes a relationship between net income and operating income that
indicates management efficiency in providing services, administrating and selling the product.A
higher profit margin ratio indicates a higher margin safety and lower risk for the organization and
vice versa.

Net Profit margin =

Table: Net Profit Margin

TK. in BDT Million

Year 2009 2010 2011 2012 2013

Net income 923.12 1066.36 1330.19 1042.05 1135.19
Operating income 2927.98 3741.57 4863.89 5285.11 5635.65
NPM (%) 35.53 28.5 27.35 19.72 20.14
Source: Annual report of JBL

Graph:

Interpretation:

From the graph we see that, in 2012 the Net profit margin was 19.72 million and increased to
20.14 million in 2013. But Net profit margin was decreased continuously over the period. It is
showing a decreasing trend which is not better for the business. It is indicating a greater risk and
low margin safety for the business.

4.1.5 Net Operating Margin(NOM):

A ratioused to measure a companys pricing strategy and operating efficiency.

Net operating margin =

Table: Net operating Margin

TK.in BDT Million

Year 2009 2010 2011 2012 2013
Operating Profit 1914.24 2406.29 2817.39 3206.89 2968.90
Interest income 3788.89 5201.49 8473.44 9626.68 9702.01
NOM (%) 50.52 46.26 33.24 33.31 30.60
Source: Annual report of JBL

Graph:

Interpretation:

Above figure represent the net operating margin ratio of JBL and we see that in the year 2009,
JBL was in in highest profitability position.Net operating margin was continuously decreased
from 2009 to 2013. In 2009 it was 50.52 and in 2013 it was 30.60 million.

4.1.6 Current Ratio:

It attempts to measure the ability of a firm to meet its current obligation. Higher value of Current
ratio indicates more liquid of the firms ability to pay its current obligation in time.

Current ratio =

Table: Current Ratio TK. in BDT Million

Year 2009 2010 2011 2012 2013

Current Ratio 0.97 1.17 1.21 1.59 1.66
Source: Annual report of JBL

Graph:

Interpretation:

The standard Current Ratio is 2:1. But the current ratios of JBL of 2009 to 2013 is 0.97:1,
1.17:1, 2.21:1, 1.59:1, and 1.66:1 respectively and the average is 1.32:1.So the current ratio,
which is very weak. To improve the ratio, JBL has to increase its current asset and reduce the
current liabilities.

4.1.7 Debt to equity ratio:

The debt to equity ratio is a qualification of firms financial leverage estimating by dividing the
total liabilities by stock holder equity.A higher value of debt equity ratio is much favourable for
the business at its high value tells about the efficiency of the business to using its available debt
for financing.

Debt to equity ratio =

Table: Debt to Equity Ratio TK. in BDT Million

Year 2009 2010 2011 2012 2013

Average total liabilities 37117.98 54177.89 71735.1 90696.66 104164.65
Average stockholders equity 3070.80 5194.7 6845.02 7803.16 8602.87
Debt to equity ratio 12.08 10.42 10.47 11.62 12.10
Source: Annual report of JBL

Graph:

Interpretation:

From the graph, we see that the total liabilities to equity are 12.08 million in the year of
2009.Total liabilities to equity was decreased to 10.42 million in 2010 and 10.47 million in 2011.
But in 2012, total liabilities to equity increased to 11.62 and in 2013 it was also increased to
12.10 million.

4.1.8 Total debt to asset:

A measure of financial risk that determines the proportion of a companys assets which have
been financed by debt.

Total debt to asset =

Table: Total debt to asset

TK.in BDT Million

Year 2009 2010 2011 2012 2013

Average total liabilities 37117.98 54177.89 71735.1 90696.66 104164.65
Average total asset 40188.79 59372.43 785399.52 98371.82 112680.07
Total debt to asset 0.923 0.912 0.913 0.921 0.924
Source: Annual report of JBL

Graph:

Interpretation:

Above figure represent the debt to asset ratio of JBL and we see that it was increased
continuously over the period except in 2009. Total debt to asset in 2010 was 0.912 million and in
2013 was 0.924 million.

4.1.9 Equity Multiplier:

This ratio is an indicator of the firms degree of leverage and ultimately the risk.
 Equity Multiplier =

Table: Equity Multiplier

TK. in BDT Million

Year 2009 2010 2011 2012 2013

Average total asset 40188.79 59372.43 785399.52 98371.82 112680.07
Average stockholders 3070.80 5194.7 6845.02 7803.16 8602.87
equity
Equity Multiplier 13.08 11.42 11.47 12.60 13.09
Source: Annual report of JBL

Graph:

Interpretation:

Above figure represents the equity multiplier ratio of JBL and we see that equity multiplier was
increased continuously over the period except in 2009.It was tk.11.42 million in 2010 and 13.09
million in 2013.

4.1.10 Operating expense to asset:

Operating expense to asset =

Table: Operating expense to asset

TK.in BDT Million

Year 2009 2010 2011 2012 2013

Operating 1013.74 1335.60 2046.49 2078.22 2666.74
expense
Average total 40188.79 59372.43 785399.52 98371.82 112680.07
asset
OEA 2.25 2.24 2.60 2.11 2.36
Source: Annual report of JBL

Graph:

Interpretation:

Operating expense to asset was decreased continuously over the period, Operating expense to
asset in 2009 was 2.52 million and in 2011 was 2.36 million except in 2011 it was increased 2.6
million.

4.1.11 Operating income to asset:

Operating income to asset =

Table: Operating income to asset

TK.in BDT Million

Year 2009 2010 2011 2012 2013

Operating income 2927.98 3741.57 4863.89 5285.11 5635.65
Average total asset 40188.79 59372.43 785399.52 98371.82 112680.07
OIA 7.28 6.30 6.19 5.37 5.00
Source: Annual report of JBL

Graph:
Interpretation:

Above figure represents the equity multiplier ratio of JBL and we see that operating income to
asset was decreased continuously over the period; operating income to asset in 2009 was 7.28
million and in 2013 was 5.00 million.

4.1.12 Operating expense to revenue:

Operating expense to revenue =

Table: Operating expense to revenueTK.in BDT Million

Year 2009 2010 2011 2012 2013

Operating 1013.74 1335.60 2046.49 2078.22 2666.74

expense

Operating income 2927.98 3741.57 4863.89 5285.11 5635.65

OER 34.62 35.69 41.46 39.32 47.31

Source: Annual report of JBL

Graph:

Interpretation:

Above figure represents the equity multiplier ratio of JBL and we see that operating expense to
revenue was increased continuously over the period, operating expense to revenue in 2009 was
34.62 million and in 2013 was 47.31 million except in 2012.

4.1.13 Asset turnover:

This ratio measures that how much turnover is generated by the total asset of the organization.
This ratio should be high which is better for the business.
 Asset turnover =

Table: Asset turnover

TK.in BDT Million

Year 2009 2010 2011 2012 2013

Interest income 3788.90 5207.52 8473.44 9626.68 9702.01
Average total 40188.79 59372.43 785399.52 98371.82 112680.07
asset
ATO 9.42 8.76 10.78 9.78 8.61
Source: Annual report of JBL

Graph:

Interpretation:

From the graph, we see that assets turnover was decreased continuously over the period; in 2009
it was 9.92 million and in 2013 was 8.61 million except in 2011 it was increased to 10.78
million. JBLs total asset turnover showing a mixed trend of increase and decrease in past five
years.

4.1.14 Dividend per Share (DPS):

The amount of dividend that a stockholder will receive for each share of stock held.

Dividend per share =

Table: Dividend per share

TK.in BDT Million
Year 2009 2010 2011 2012 2013

Dividends 61.13 59.20 68.8 86.64 95.85

No. of Share 162.19 223.01 364.84 448.75 448.75

DPS(%) 37.69 26.54 18.85 19.31 21.35

Source: Annual report of JBL

Graph:

Interpretation:

Dividend per share was decreased continuously over the period, Dividend per share in 2009 was
37.69 million and in 2011 was18.85 million except in 2012 and 2013.

4.1.15 Earnings per Share (EPS):

Earnings per share ratio measures the earning capacity of the concern from the owners point of
view and it is helpful in determining the price of the equity shares in the market place.

Earnings per share =

Table: Earnings per share

TK.in BDT Million

Year 2009 2010 2011 2012 2013

Net profit after 923.12 1066.36 1330.19 1042.05 1135.19

Tax

No. of Share 162.19 223.01 364.84 448.75 448.75

EPS 5.69 4.78 3.65 2.32 2.53

Source: Annual report of JBL

Graph:

Source: Annual report of JBL

Interpretation:

Earnings per share were decreased continuously over the period.Earnings per share in 2009 were
5.69 million and in 2012 was2.32 million except in 2013.To improve the ratio JBL has to
increase its net income and reduce weighted average common shares outstanding.

4.1.16 Net Asset Value (NAV):

Net asset value is the value of a fund asset less the valueof its liabilities per unit.

Net asset value =

Table: Net Asset Value

TK.in BDT Million

Year 2009 2010 2011 2012 2013

Total Asset 48730.95 70013.90 87064.13 109678.50 115681.64

Total Liabilities 44750.08 63605.71 79783.62 101353.67 106800.70

Issued Common 162.19 223.01 364.84 448.75 448.75
Share

NAV (%) 24.54 28.74 19.96 18.55 19.79

Source: Annual report of JBL

Graph:

Interpretation:

Net asset value was decreased continuously over the period, Net asset value in 2009 was 24.54
million and in 2012 was 18.55 million except in 2010 and 2013.

5.1 Findings
From my study on the financial performance evaluation of JBL, I have got some major findings
which are given below:
JBL is expanding its business according to its demand of the market and it is earning
income from its operation in a growing trend.
The consistent and increasing growth trend of performance indicator has increased
depositors confidence as well as goodwill of the bank to a great extent and these has
contributed to increase the shareholders value.
JBL has already established a favorable reputation in the banking industry of the country.
JBL always maintains the rules declared by Bangladesh bank.
Net profit margin of JBL was higher than from previous year which indicates good
management for the year.
Return on asset and Return on equity is in lower in trend, but above the acceptable rate.
The standard current ratio is 2:1 which the bank has not obtained in any of the financial
year. It shows the negative impact.
Earnings per share and dividend per share of JBL are less than previous year.
Profit before tax and profit after tax shows the increasing trend during the period under
review. It depicts that the bank is working with more efficiency.
JBL provides training facilities to its officers and also provide executive development &
internship program but it is not sufficient.

5.2 Recommendations:
I have some point to focus which will help the bank to improve the efficiency as well as the
quality of work. The points are as follows:
 JBL should formulate the strategy to effective use of the operating asset for generating
more revenue.
Shareholders fund should be properly utilizedto increase return on investment and return
on equity for maintaining its goodwill in investors mind.
Operating expense should be controlled.
A low current ratio indicates that it will not be able to meet its short-term debt. Try to
increase current asset and minimize the current liability.
Effective and efficient initiative is necessary to recover the default loan money.
The rate of interest should be reasonable.
The competing banks performance should be monitored regularly.
To attract more clients, JBL has to create a new marketing strategy which will increase
the export import business.
Remittance policy should be flexible.
Customized new financial product development, new technology, new ideas etc.
To improve Earnings per Share bank should increase its net income and reduce weighted
average common share outstanding
Attractive remuneration package is necessary to motivate the employees so that they will
provide better services.
To increase advertisement in various media for promoting the product.
To gather the social image, JBL needs to participate in the more social welfare.

5.3 Conclusion
From the beginning of greater change in the world economic structure, banking activities has
becoming an important thing. Now a day the idea of banking is also developed and a huge
number of private commercial banks are just on waiting for business. In Bangladesh,
Commercial banks are playing vital role in the development of our economy and financial
system. To compete in the environment of advancing technology and faster communication the
Jamuna Bank Limited should depend more heavily on the quality service and information
technology compared with other Banks.Jamuna bank Ltd is contributing more investment of its
funds in fruitful projects leading to increase in production of the country. The number of
branches of JBL is also increasing. This increasing number of bank branch indicates that JBLs
geographical coverage is increasing and the bank is expanding its operation. The trend of paid up
capital is upward. This upward trend indicates that investors are buying more and more shares at
high price. Total asset of JBL has increased over the last five years. Increase of total asset means
additional investment by the bank. Besides assets, total liability of the bank has also increased
significantly. Increase of liability reduces the banks solvency both in short and long term. Total
shareholders equity of JBL has increased very rapidly. Increase of shareholders equity means
there are more owners as well as more stake of the shareholders in the operational and financial
activities of the bank. Todays business world is very competitive and diversified. With the
diversification of business and related activities every country like us tries to bring its economic
and social development.Jamuna Bank is a leading banking institution and to play a pivotal role in
the economic development of the country.

References:
Research Methodology: Methods & Techniques.

-C. R. Kothari (2nd Edition)

Research Methodology: An Introduction
-Wayne Goddard and Stuart Melville (2nd Edition)
Fundamental of Financial Management
-Eugene F. Brigham, Joel F. Houston (12th Edition)

Prospectus of Jamuna Bank Ltd.

Published booklist and hand bills of JBL

Annual Business Conference 2013- A handbook of Jamuna Bank Ltd.

Annual Report 2009 of JBL

Annual Report 2010 of JBL

Annual Report 2011 of JBL

Annual Report 2012 of JBL

Financial statement 2013 of JBL

The Daily Financial Express. Viewed at (06, April, 2014.)

 www.bangladeshbank.com

www.jamunabankbd.com

www. Wikipedia.com