Financial Performance Analysis of Rupali Bank Limited (RBL)

Internship report on Financial Performance Analysis
of Rupali Bank Limited
Prepared by
S.M. Ziaul Hasan Parash
ID#162-11-5254, BBA (Finance)
Department of Business Administration
Faculty of Business & Entrepreneurship
i
Internship report on Financial Performance Analysis
of Rupali Bank Limited (RBL)
Submitted To:
Md. Kamruzzaman Didar
Assistant Professor
Prepared By:
ID#162-11-5254, BBA (Finance)
Date of Submission: December 23, 2020
ii
Letter of Transmittal
December 23, 2020
Md. Kamruzzaman Didar

Assistant professor
Department Of Business Administration
Daffodil International University, Dhaka-1207.
Subject: Submission of Internship Report.
I obtain enjoyment in submitting the report on “Financial Performance Analysis of Rupali Bank
Ltd.” as a requisite of the BBA program of the Department of Business Administration for your
contemplation. I have finished the report in appropriate time plus met every single one the
anticipated objectives. Apart from the educational facts gained, this internship program and
training of report has given me the chance to appreciate the subject connected information. I
have tried my best to craft this statement an inclusive and educational one. I expect you will be
grateful for my attempt and locate the report up to your anticipation.
It has to be mentioned additional that exclusive of your counsel and support it would not be
probable for me to finish this report. I shall be indebted to reply whichever species of queries you
feel essential concerning this report
Yours Genuinely,

ID# 162-11-5254, BBA (Finance)
Daffodil International University
iii
Approval Certificate
This is certifying that S M Ziaul Hasan Parah, ID # 162-11-5254, BBA (Finance), is a regular
student of Department of Business Administration, Faculty of Business and Entrepreneurship,
Daffodil International University. He has effectively finished his internship program at Rupali
Bank Ltd and has primed this internship under my straight direction. His given internship theme
is “Financial Performance Analysis of Rupali Bank Ltd.” I believe that the report is deserved
gratifying the part necessities of BBA program.
I wish his each achievement in life.
Mr. Md. Kamruzzaman Didar

Assistant Professor
iv
Acknowledgment
“In the name of Almighty Allah the beneficent the merciful”, This document would not have
been achievable devoid of the direction plus the assist of quite a lot of people who in one way or
an additional contributed and comprehensive their precious support in the grounding and
achievement of this study.
I started this internship report and lastly it has been finished. Though, the very special gratitude
departs to my supportive advisor, Md. Kamruzzaman Didar, Assistant Professor, Department of
Business Administration. The direction as well as sustain that he gave really assist of
development and make me comfortable to the internship program. The collaboration is really
indeed cherished.
I’m appreciative to everyone the superior officials of who had make the chance to obtain the
sensible knowledge. In addition, this internship program helps me to understand the worth of
working jointly as a squad and as a fresh experience in operational atmosphere, which challenge
us each second.
Very last but not least I am too allocated to each individual who startled indoors and exterior of
Rupali Bank Ltd in carrying out this report.
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Abstract
Banks are the foremost vital monetary division as they engage in recreation a really vital position
for the financial system. Though, the performance and achievement of a bank depends totally
ahead the fulfillment of their customers. This report is especially arranged supported two most
important themes ‘Financial performance’ and ‘General banking activities’. I have calmed a
number of primary as well as secondary information from various sources. I go from beginning
to end the yearly reports and in this report I have discussed about General banking of Ruapli
Bank and its 5 years financial Statement. I have analyzed liquidity ratio, Asset Activity Ratio,
Efficiency Ratio, Profitability Ratio, Credit risk Ratio, Others Ratio. Also I have analyzed
Common Size of Balance sheet and income statement and Trend analysis of Balance sheet as
well as income statement. Rupali Bank limited’s representative website helped me to urge data
about general banking actions. Furthermore, the officer and their administration team gave me
the newest proportion of a variety of skims rates. I moreover found that banking trade generally
media of flowing of money from depositors to investors. In responsibility so, banks got to gather
deposit from the depositors then allocate those as loan to the investors. In addition, banks offer
various services like global trade, currency relocate compilation and imbursement of efficacy
and additional bills etc. All of which are completely client oriented. Consequently, banks are
treated as overhaul organizations as well as trade of bank mainly reliant on pecuniary
performance. I have tried to spotlight the exceeding issues all the way through this report. In my
intership stage, I felt a number of precincts in Rupali Bank Limited that I even have enclosed for
the duration of this report by accumulation conclusion as well as recommendations.
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Financial Performance Analysis Rupali Bank Limited
Content
Chapters Particulars pages
Letter of Transmittal iii
Approval Certificate iv
Acknowledgment v
Abstract vi
CHAPTER-01 Introduction 1-4
1.1 Introduction of Report
1.2 Background of the Study
1.3 Scope of the study
1.4 Objectives of the study
1.5 Methodology of the Study
1.6 Limitations of the Study
CHAPTER-02 About Rupali Bank (RBL) 6-17
2.1 Historical Background of Rupali Bank Limited
2.2 Corporate Vision
2.3 Corporate Mission
2.4 Core Values
2.5 Organizational Structure
2.6 Corporate Profile
2.7 General Banking Activities
2.8 Types of Accounts & deposit Products
2.9 Account Openning & closing Section
2.10 RBL SureCash
2.11 Utility services
2.12 Cash section
vii
2.13 Loan Department
2.14 Foreign Exchange
2.15 Remittance
CHAPTER-03 Theory analysis 18-25
3.1 Ratio Analysis
3.1.1 Liquidity Ratio
3.1.2 Asset Activity Ratio
3.1.3 Efficiency Ratio
3.1.4 Profitability Ratio
3.1.5 Credit Risk Ratio
3.1.6 Others Ratio
3.2 Common Size Analysis
3.2.1 Common Size of Balance Sheet
3.2.2 Common Size of Income Statement
3.3 Trend Analysis
3.3.1 Trend Analysis of Balance Sheet
3.3.2 Trend Analysis of Income Statement
CHAPTER-04 Financial Analysis of Rupali Bank Ltd 26-37
4.1 Ratio Analysis
4.1.1 Liquidity Ratio
4.1.2 Asset Activity Ratio
4.1.3 Efficiency Ratio
4.1.4 Profitability Ratio
4.1.5 Credit Risk Ratio
4.1.6 Others Ratio
4.2 Common Size Analysis
4.3 Trend Analysis
viii
CHAPTER-05 Problems, Recommendations & Conclusion 38-42
5.1 Problems Identified
5.2 Recommendations of Rupali Bank Ltd
5.3 Conclusion
ix
Chapter 1
Introduction
1
1.1 Introduction:
The word “Bank” reflect a monetary organization which deals with cash. Banking has an
extremely extensive and affluent experience. Rupali bank has been formed in 1972 subsequent to
the freedom of Bangladesh. Rupali bank is an amalgamation of 3 banks in Bangladesh which are
“Muslim banks limited, Australasia banks limited, standard banks limited”. Before incoming as a
govt. owned bank. It worked while a publicly owned commercial bank. Rupali Bank has 554
twigs everywhere the state and that they have legislative body everywhere the planet. The major
objective of Rupali bank is to give banking services in the middle of wide-ranging people of the
state. Rupali bank has been trying to know significance of save to countryside people. Rupali
bank has obtainable additional interest rates than other banks to draw in people to release bank
account, FDR, DPS account. The major motive is that this thing to form public economizes in
arrange that they will employ the cash in stern occasions and that they don’t need to take any
credit from further financial institution and from any person at an elevated interest rate.
Normally we have seen a number of conflicting types of banks like; “Central Banks, Commercial
Banks, Investment Banks, Industrial Banks, Co-operative Banks etc”. Excluding once we make
use of the expression “Bank” with none prefixes, or requirement, it refers to the “Commercial
banks”. Commercial banks are the main contributors to the financial system of a state. So we are
able to articulate full service bank could be a profitable organization that holds the deposits of
people & trade in scrutiny & investments accounts and then uses this money to formulate loans.
For these public and therefore the administration is extremely a great deal dependent on these
banks as the monetary mediator. Contemporary financial area is increasing day by day. At the
similar period the banking procedure is flattering faster, easier and therefore the variety of
baking region is becoming wider. As the demand for improved overhaul increases day by day,
they’re approaching with many inventive thoughts & goods. In organize to continue to exist
within the spirited ground of the banking division. Every banking institute is searching for
improved service opportunities to supply their associate customers. As a consequence, it has
turned into crucial for each person to possess a number of thought on the bank as well as banking
process. Conversely, incoming in to a replacement millennium, banking requirements became
added varied and striking than ever by.
2
1.2 Background of the Study:
As a prerequisite for the Bachelor of Business Administration (BBA) degree from Daffodil
International University (DIU), it's required to finish an internship from a reputed concern &
prepare a report. As a student of BBA, I actually have completed three (3) months internship
from Rupali Bank Limited at Asad gate branch. I've prepared internship report named “Financial
Performance Analysis of Rupali Bank Limited” by using practical knowledge and real life
experience of internship at Rupali Bank Ltd at Asad gate branch.
1.3 Scope of the study:

The scope of the study covers general activities and financial Performance analysis of RBL.
Main focus of this report is to analyze:
 Ratio Analysis
 Trend Analysis
 Common Size Analysis
1.4 Objectives of the Study:

The objectives of the this lessons are listed below-
General Objective:
 To evaluate the financial statements of Rupali Bank Limited with the key focal point of its on
the whole financial presentation.
Specific Objective:
1. To recognize the present fiscal site of Rupali Bank Limited.
2. To recognize the previous Five years fiscal performance RBL by scheming and
analyzing various kind of ratio.
3. To identify the problems related to fiscal performance of RBL.
4. To formulate a few possible recommendations to recover the troubles.
3
1.5 Methodology of the Study:
The research is an exploratory research in nature.
1.5.1 Data collection:

The analysis requires methodical practice from assortment of the theme to ultimate report
appearance. In this report, evocative technique was undertaken to gain insights as well as
concerned of the financial performance of RBL. To execute the cram data sources were
recognized and calm, they were classified, analyzed, interpreted as well as obtainable in
complete way and vital points are locate out. This all-inclusive progression of method is
provided in below that has been followed in the analysis.
Sources of data: The statistics used to inclusive this report has been calm from the Primary
sources as well as Secondary sources.
Primary Sources:
 Conversation with officials of RBL.
 Front talk with the corresponding executive of the local office
 Contact on variety desk of the company.
 Front chat with clients.
Secondary Sources:
 Web site of RBL. (https://www.rupalibank.org/).
 RBL yearly report 2018-2022.
 Lanka bangla (http://lankabd.com)
Data Analysis:
To study the data, MS Excel has been used.
4
1.6 Limitations of the Study:
There were some limitations in completing the report with rich resources. A number of the
crucial limitations are-
 Throughout the internship stage there was a restriction of given time.
 The model size was petite allowing for the size of the population.
 The review effect won't replicate the correct reality for the reason that the respondents won't
liberally crowded up the questionnaires.
 While it’s a civic bank the majority of the knowledge about the bank and its goods isn’t
visibly mentioned in its websites and therefore the website isn’t for all time up to dated.
 Financial information was also tricky to gather aside from yearly report.
 There was barrier to search for fiscal information.
 As the internship is that the initial sensible experience, it’s impossible to understand the
whole thing regarding the bank.
5
Chapter 2
About Rupali Bank Limited (RBL)
6
2.1 Historical Background of Rupali Bank Limited:
“Rupali Bank Ltd (RBL) was formed with the joining of three merchant banks Muslim
commercial bank Ltd, Australasia Bank Ltd and Standard Bank Ltd. organized within the then
Pakistan on March 26, 1972 under the Bangladesh Banks Nationalization order 1972 (P.O.NO.
26 of 1972), with all their assets, benefits, rights, powers, authorities, privileges, liabilities,
borrowings and duty. Rupali Bank provides service as a nationalized commercial bank till
December13, 1986. Rupali Bank Ltd. Emerged because the largest Public Limited depository
financial institution of the country on December 14, 1986 (Rupali Bank Limited, 2013)” [4].
2.2 Corporate Vision:

“Expand our valuable client depends on being mentioned because the financial partner of choice
that constantly exceeds customer expectations" is the vision of RBL. It calls the bank is
dedicated to fulfilling varied desires of its clients at a spirited value by using of correct tools and
given that eventually service so as that a sustainable enlargement, sensible return and
involvement to the event of the country are often ensured with a aggravated and specialized staff.
2.3 Corporate Mission:

The following missions of RBL are given below:
• Expand a long-standing bond that helps our clientele to realize pecuniary achievement.
• Present gratifying employment opportunities and develop employee’s commitments.
• Sustain ethical principles and meet its client’s financial need inside the quicker and mainly
suitable method and persist inventive works so as to realize human resource with better
traits, technical communications and fix correspondence.
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2.4 Core Values:
A modish worth obeys by Rupali Bank Limited.
• Societal accountability – We look after as well as contribute to our communities
• Presentation -We count consequences and prize.
• Integrity- We pursue honesty and trade principles
• Revere- We value each entity
• Improvement- We give confidence originality
• Teamwork-We work together to succeed
By adding initial letters of those words form “SPIRIT” and take equivalent significance
2.5 Organizational Structure:

Each bank follows a ladder stage of formation to take care of a sequence of authority and
function consequently. The managerial formation of Rupali Bank Limited is provided below:
Chairman
Vice Chairman
Directors
Managing Directors
Deputy General Manager
General Manager
Assistant General Manager
Senior Principal Officer
Principal Officer
Senior Officer
Provisionary Officer
Stuffs
8
2.6 Corporate Profile:
Name of the company : Rupali Bank
Limited Chairman : Mr. Monzur Hossain
Managing Director : Mr. Md. Obayed Ullah Al Masud
Company Secretary : Mohammad Najmul
Hoda(DGM) Legal Status : Public Limited Company
Genesis : “Rupali Bank Limited has been incorporated on 14 December
1986 under the Companies Act 1913 after taking over and acquiring as a going deal with the
pledging and trade of RBL with all of its assets, liabilities, benefits, rights, powers, authorities,
privileges, borrowings and duty. Rupali Bank, which initially emerged as a Nationalized
Commercial Bank under the Bangladesh Banks Order, 1972 (President’s Order No. 26 of 1972),
has now formed a state-owned commercial bank through a vendor’s agreement dated 15
November 2007”[1].
Date of Incorporation : 14 December 1986
Registered Office : 34, Dilkusha Commercial Area, Dhaka-1000, Bangladesh
Authorized Capital : Tk. 7000 million (US$ 88.66 million)
Paid-up Capital : Tk. 3765.16 million (US$ 44.64 million) [Till september 30,
2021]
TIN Certificate : 177-200-0021/LTU/Dhaka
E-TIN Certificate 637043541293
Website : www.rupalibank.org
E-mail : [email protected], [email protected]”
9
2.7 General Banking Activities:
General banking section is recognized because the center of all banking activities. This is
frequently the busiest and one in the middle of the foremost vital sections of a branch as money
is assembled; currency dealings are done; clearance, transfer of funds and office actions are
made here. As bank is cramped to produce the services every day, General banking is
additionally referred to as “retail banking”. In the main local office of Rupali Bank Ltd, the
subsequent sections are beneath general banking section:
 Account opening section
 Deposit section
 Cash section
 Clearing Section
 Accounts section
2.8 Types of Accounts & deposit Products:

Normally, in attendance are four main types of accounts in Rupali Bank Limited.
 Current account (CD Account)
 Savings Deposit (SB Account)
 Fixed or Time Deposit (FDR)
 Other Types of Deposit or savings skims
Current Account:
Current account is solely a requirement time deposit account. There’s no constraint on
withdrawing cash from the account. It’s mainly vindicated when money is to be calm as well as
cash is to be paid at common period.
A few niceties are as follows-

1. Smallest amount opening deposit of TK.5000/- is needed, excluding under particular
condition it may be opened with tk.1000
2. There’s no taking out bound.
3. No interest additional or else less is provided ahead the deposited cash.
4. Profit rate is 0.00%
10
Savings account:
This deposit is first and foremost for small-scale depositors. Therefore, there’s a restraint on
pulling out money during month. Huge withdrawals are acceptable just alongside past note. A
few details are-
1. Least amount aperture deposit of Tk.1000/= is requisite;
2. Withdrawal account shouldn't be quite 1/4th of the entire amount at an instance and
bound two times during a month.
3. If withdrawal balance goes beyond 1/4th of the entire amount at an instance nix
income additional or fewer is prearranged ahead the deposited cash for that month.
Fixed Deposit:
The regional transmittal sector of Rupali bank Ltd furthermore issues FDR. They’re too referred
to as point in time deposit or instance liabilities. These are deposits, which are completed with
the bank for a set stage, particular in advance. The bank needn't sustain ready money funds next
to these deposits and therefore, the bank presents elevated of profit additional or else fewer on
such deposits.
Opening of Fixed Deposit:

The savers must plug an account form where within the state the quantity of deposit, the amount
for which deposit is to be completed as well as name/names is which the permanent deposit
receipt is to be issued. Just in case a combined given name Rupali Bank Ltd too gets hold of the
management concerning imbursement of cash on mellowness of the deposit. The bank officials
also obtain example signature of depositor. A set point in time deposit account is then issued to
the depositor admits acceptance of the figure of cash state there. It as well holds the speed of
profit additional or fewer and therefore the time on which the deposit will drop reason of
imbursement.
Other Types of Deposit:

Apart from three, Rupali bank has a number of additional kinds of deposit systems. They are
named “Term Deposits”. Term deposit is intended for petite time or extended occasion period.
These rates are not flexible. That is provided via the bank for exact stage.
11
1. SND: Short Notice Deposit is depending on every day deposit of cash in the bank. it
provides interest on 3% twice (June and December) a year.
2. RSSA: Rupali Scholar Saving Account is able to undo with TK100/- no overhaul
charge. It provides interest on 4% of the saving two times a year.
3. RMPS: 3 years need for Rupali Monthly Profit system. It provides interest on 5.5% of
the deposit. This programmed is merely on point in time deposit of 100000 or
additional.
4. RMES: Rupali Monthly earning programmed is intended for 3 plus 5 existence. It too
provides uppermost interest rate of the deposit politely.
2.9 Account Opening & closing Section:

By the creating of an account by the clients the relation begins between the banker and clients.
Firstly all the accounts are created with deposit cash by the clients and therefore these accounts
are called deposit account. Normally, individual need to open an account to take service from it.
With no opening an account, a person can obtain merely a small number of services from the
bank. So the banking starts in reality through the creating of an account amid a bank.
Official procedure for opening an account:

 1st step
The individual keen to create an account amid the bank has got to compose appliance within the
prearranged appearance. This given appearance has to correctly fill up and signature by the
candidate.
 2nd step
The candidate in addition essential to provide within the appearance the names of the indication
that’s means “introducer information” as of whom the bank official do investigation concerning
the nature, honesty and decency of the candidates.
 3rd step
Each client is necessary to provide to his bank official with one or else additional sample of his/
her autograph. These sign are in use on cards, which are conserved by the bank officials and his
sign of the account holder on cheques is contrast amid the sample sign.
 4th step
12
Subsequent to the exceeding official procedure are above, the bank officials create an account
while the name of applicant. Normally the least amount to be deposited firstly is TK 100
although it depends commencing bank to bank.
 5th step
By means of a sight of ease the acknowledgment of credit objects remunerated in by a client, the
bank will present him/her disburse in trip whichever movable or during a manuscript forms. The
client’s has got to refill the forfeit in slip at the period of depositing the cash by means of the
bank. The banker with his/her original and tramples will return oppose frustrate to the client on
the proof of payment of the cash.
 6th step
To make possible withdrawals as well as expenditure to their customer by the clients, the bank in
addition will offer a cheque book to the client. But it’s eminent that to urge a cheque book, the
consumer has to bleakly refill the cheque demand lose your balance to the bank official.
Official procedure for concluding an account:
 1st step
The clients may notify the bank in script of his/her intention to shut the account.
 2nd step
The client has got to be relevant to the local office accountable for concluding the account. Then
the responsible will statement on the account concluding request for closing the account.
 3rd step
Client must sketch a cheque of the entire amount and a zero balance verification to be in use as
of the account owner.
 4th step
Recuperate the idle cheque foliage plus pierce into the “Broken cheque book register”
 5th step
While the bank official locates that the account isn’t been activate for an extended emerald the
banker can ask the customer to shut the account.
13
2.10 RBL SureCash:
Ruapli Bank SureCash is committed to extending web of monetary addition in the middle of the
public of Bangladesh through making easy cash transport by mobile phones. SureCash gives
Mobile Banking Services permitting their customer to propel, collect, plus disburse cash by their
mobile phones. Send as well as receive cash, or else make payments the greatest approach
there’s. Rupali Bank SureCash allows a client to propel cash to anybody, using a complex
technology accessible on your own mobile. Life becomes easier when you give payments
through Rupali Bank SureCash since you do not have to return residence or wherever else to
urge cash once you require purchasing something plus have sprint out of cash.
2.11 Utility services:
Rupali Bank provides numerous exceptional services to clients additionally to its usual banking
activities. Assortment of varied service bills is one among of them. Below this service the bank
give advantage to customer by accumulating their variety of service bills such as phone bill,
sewerage, water bill, electricity bill etc.
Several kind of assortment of bills in RBL Asad gate branch:
1. Phone bills
2. Sewerage and water charge of WASA
3. Current Bill
4. Many Educational institutes tuition fess which are situated nearby.
2.12 Cash Section:
Cash division is that the most responsive a component of any bank’s branch because it compact
with every types of money dealings. The day begins in this department with money in vault.
From the money vault some cash that is called “opening cash balance” are moved to cash official
each day. Net figure of this money receipts in addition to payments are extended to the beginning
cash balance. The number is named ending balance. Then this end balance is put into the vault.
At the end of any particular day this is the final cash balance figure for the bank.
14
2.13 Loan Department:
The bank’s credits and advances assortment also shows a magnificent enlargement.
 Generally two kinds of credit Rupali Bank are giving.

 Funded
 Non-funded
In the Branch of the Rupali Bank many kinds of funded credit and advances available.
 Listing of necessary credentials required to be relevant for a loan:

 Bank assurance Floor Credit.
 Packing Credit
 Sell overseas growth fund
 Letter of Credit
 Imbursement next to credentials
 LATR (loan against trust received)
 Major duty of this section-

 Trade in Business
 Sell overseas Business
 Overseas Correspondents
 Task of Foreign Exchange-

 Letter of Credit is opened here.
 Overseas Pay Order
 Make declaration and information For Head Office and Bangladesh Bank.
 Swap overseas currency
 Imbursement and compilation of L/C money in money in good turn of customer.
15
2.14 Letter of Credit:
Written letter of credit is a meeting by which a bank performing on the demand plus in
agreement through the directions of a client is to make imbursement or else to the arrange of a
payee or is to reimburse allow or bargain bills barter strained by the recipient next to
predetermined credentials plus fulfillment with specific conditions with circumstances. The
shape of the Letter of credit differs from Bank to Bank. Every party to a Letter of credit has to
have the equal accepting about the provisions and circumstances utilized within the credit. The
“Uniform Customs and Practice for Documentary Credits” are formulated by the international
Chamber of Commerce to shun the extent for uncertainties and distinctions in explanation of
conditions of the credit.
 Credentials necessary for opening L/C:
When an importer desire to buy in somewhat which are officially permitted as if he has
subsequent importer credentials similar to IRN,TIN, VAT as well as CURRENT A/C then he
need to go to the bank to create L/C to import, if Bank desire to open L/C, then the shipper
should pursue those systems:
 Demand correspondence to open L/C

 Preformed statement or notch
 LCAF
 IMP appearance
 Insurance cover note.
2.15 Remittance:
The word “Remittance” is transferring cash from one state to another state for the client’s.
This overhaul is a vital element of countries imbursement scheme and another important
overhaul of banks. For this services, citizens especially trader can transport money from one
country to a different country easily. Present are many kinds of remitting cash, such as:
16
 Pay Order:
The pay order is employed intended for creating a transmittal to the confined creditor. Pay Order
presents to the payee the proper to say imbursement from the concerning bank. It can be en-
cashed from providing bank merely. Pay Order can't be authorized or traversed then it's not legal
document.
 Demand Draft:
Demand Draft is a regulate of concerning bank on one more local office of an equivalent bank to
reimburse particular figure of cash to the payee on insist that's called individual or sort of the
demand. It is normally concerned at what time consumer desires to dispatch cash in antwhere,
which is exterior of the clearing-house region of concerning local office.
 Telegraphic or Telephonic Transfer:
This system relocates cash to a minimum of one consign to a special consign by telegraphic
message. The recipient local office will ask for a different local office to disburse requisite cash
to the specified payee on insist. Normally designed for such quite relocate payee should have
account with paying bank.
17
Chapter 3
Theory analysis
18
3.1 Ratio Analysis:
Ratio study is an investigation of the dealings between monetary capricious. Its accustomed
gauge a variety of features of an organization’s in service as well as fiscal presentation like its
effectiveness, liquidity, prosperity and solvency. The trend of those ratios in excess of moment in
time is deliberated to see whether or not ratios are improving or worsening. Ratios are often
spoken as a percent, rate or fraction. The ratio psychoanalysis is an important method for
monetary reports study. Various users like shareholders, administration, bank officials and
creditors utilize the ratio to research the financial circumstances of a corporation for his or her
deciding reason. Here, this statement holds the foremost general ratios and investigate to gauge
the in service and financial act of Rupali Bank Limited in excess of the years 2018, 2019, 2020,
2021 & 2022.
Ratios are in the middle of the extra extensively used tackles of monetary report analysis as they
supply signs as well as indications of fundamental circumstances. A ratio can assist us to
understand situations and movement’s briar notice by inspecting entity apparatus creation up the
ratio. Ratios, similar to further psychoanalysis gadget, are generally prospect leaning. They’re
often attuned for his or her credible prospect tendency and extent, and their utility depends on the
clever understanding. A Ratio shows a connection involving two numbers. It is often spoken as a
percent, rate, or quantity. Calculation of ratio may be an easy mathematical process, but its
explanation isn’t. To be consequential, a ratio ought to ask a financial vital relation.
In this segment a crucial situates of monetary ratios and its purposes are explained. The chosen
ratios are ordered into the six structure blocks of monetary report study. These are as follows:
1. Liquidity Ratio
2. Asset Activity Ratio
3. Credit Risk Ratio
4. Efficiency or Activity Ratio
5. Profitability Ratio
6. Other Ratios
19
3.1.1 Liquidity Ratio:
Liquidity refers to the supply of capital of a corporation to satisfy petite-term money necessities.
It’s stricken by the timing of money inflows as well as outflows alongside prediction for prospect
presentation. Psychoanalysis of liquidity is intended toward an organization’s financial support
necessities. If a corporation be unsuccessful to satisfy its present compulsions, its sustained
continuation is uncertain. From this view point, all additional events of study are in inferior
significance. Even though secretarial dimensions take for granted the organization’s sustained
continuation, our analysis should review the strength of this statement using liquidity events.
This segment explains the major ratios related to reviewing liquidity ratio:
 Cash in hand and at banks

Cash Ratio= 𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑝𝑜𝑠i𝑡
Cash
 Cash to Assets=
Total Asset
 Cash to Deposits= Cash

Total Deposits
Loans
 Loans to Total Deposit=
Total Deposits
 Loans to Total Asset= Loans

Total Assets
3.1.2 Asset Activity Ratios:
An activity ratio is a proportion which mentions the power of a corporation to adapt its record
financial statements keen on returns. Activity ratios calculate the relation competence of an
organization supported it’s utilize of its resources, influence, or additional alike record substance
and are necessary in formative whether organization’s administration is doing an honest
sufficient job of making revenues and money as of its wherewithal. Activity ratios estimate an
institute’s outfitted effectiveness and working ability. These proportions are mainly effective at
what time evaluated to a rival or same manufacturing sector to set up whether an entity’s
developments are positive or adverse. Activity ratios can appearance a base of judgment athwart
numerous coverage periods to work out transforms in excess of time. This segment explains the
main ratios related to evaluating activity ratio:
20
 Total Assets Turnover:𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡
 Equity Turnover: 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐼𝑛𝑐𝑜𝑚𝑒

𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢i𝑡𝑦
 Current Asset Turnover: 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐼𝑛𝑐𝑜𝑚𝑒

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡
 Fixed Asset Turnover: 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐼𝑛𝑐𝑜𝑚𝑒

𝑇𝑜𝑡𝑎𝑙 𝐹i𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡
3.1.3 Efficiency Ratio:
The efficiency ratio is usually wont to investigate how healthy a corporation utilizes its
possessions and accountabilities internally. A competence ratio can study the return of
receivables, the reimbursement of liabilities the amount and usages of the equity and the normal
use of inventory plus machines. Competence refers to how fruitful a corporation in using its
assets. Efficiency is typically calculated comparative to what proportion returns is making from a
particular stage of possessions. Moreover liquidity problems can arise because of inefficient use
of assets. A shortage of liquidity frequently paves the way inferior advantage and fewer chances.
A corporation’s clients and providers are also undergone by short-term liquidity troubles, and it
is keener, at what time it is a banking institutes. This part explains the major ratios related to
evaluating efficiency ratio:
 (Interest Income− Interest EXpense)

Interest Income to Expense= 𝑇𝑜𝑡𝑎𝑙 𝐿𝑜𝑎𝑛𝑠 𝑎𝑛𝑑 𝐴𝑑𝑣𝑎𝑛𝑐𝑒𝑠
 Operating Expense to assets= Operating EXpense

Total Assets
O𝑝𝑒𝑟𝑎𝑡i𝑛g 𝐼𝑛𝑐𝑜𝑚𝑒
 Operating Income to assets=
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
 Operating Expense to Revenue= O𝑝𝑒𝑟𝑎𝑡i𝑛g 𝐸𝑥𝑝𝑒𝑛𝑠𝑒

O𝑝𝑒𝑟𝑎𝑡i𝑛g 𝐼𝑛𝑐𝑜𝑚𝑒
21
3.1.4 Profitability Ratio:
Profitability ratios are a category of monetary metric that are accustomed evaluate a trade’s
capability to get income comparative to its linked operating cost. Intended for many of those
ratios, having a better worth comparative to a rivals ratio or comparative to an equivalent ratio as
of an earlier phase specify that the corporate is doing well. We are particularly curious about a
corporation’s capability to utilize its resources competently to supply earnings and optimistic
cash flows. Profitability refers to a corporation’s capability to get a sufficient return on invested
funds. Return is evaluated by appraising income comparative to the extent and basis of financing.
Abundance is additionally pertinent to solvency. This segment explains major profitability
measures and their significance to budget psychoanalysis.
This part describes the key ratios related to profitability activity ratio:
 Return on Asset= Net Income

Total Assets
 Return on Equity= Net Income

Total Shareholders’ Equity
 Return on Deposit= Net Income

𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑝𝑜𝑠i𝑡
 Return on Shareholders Capital= Net Income

𝑆h𝑎𝑟𝑒h𝑜𝑙𝑑𝑒𝑟𝑠 𝑐𝑜𝑛𝑡𝑟i𝑏𝑢𝑡𝑒𝑑 𝑐𝑎𝑝i𝑡𝑎𝑙
 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑜𝑛 𝐿𝑜𝑎𝑛 Interest on Deposit

Interest Spread= ( Total loan ) -( Total deposit )
 (𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐼𝑛𝑐𝑜𝑚𝑒− 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒)

Net Interest Margin= Total Assets
 Net operating Margin= Operating Income

Interest Income
3.1.5 Financial Risk Ratio:
This part describes the key ratios related to credit risk activity ratio:
 Equity to Assets
 Equity to Net Loans
22
3.2 Common Size Analysis:
Common size psychoanalysis is an instrument to assess entity financial statement objects or a

collection of objects on period of exact based amount. We typically describe a major collective
number as the base, which for a bank’s income statement is overall income or proceeds revenue
and for a balance sheet is generally overall possessions. Common size analysis is requisite
Common size statements. So, intended for common size study of RBL's financial statements I
have arranged its common size income statements and common size balance sheets for four
years.
I use common size statements of (RBL) to disclose the transforms within the comparative
significance of every budget substance. Each single amounts in common size statements are
redefined in conditions common size proportions. The common size balance sheets and income
statements are exposed relatively from 2018 to 2022.
3.2.1 Common Size of balance sheet:
A standards size balance sheet is a record that shows mutually the numeric worth as well as
comparative proportion for whole possessions, entire liabilities plus equity accounts.
A common size balance sheet permits for the comparative level of every asset, liability and
equity account to be rapidly evaluated. Several solo assets item is evaluated to the worth of
whole assets. Similarly, any particular liability is evaluated to the worth of whole liabilities.
Some equity account is evaluated to the worth of whole equity. Intended for this cause, all most
important categorization of account will equal 100%, as all lesser mechanism will add up to the
main account categorization.
3.2.2 Common Size of Income Statement:
A common size earnings report is a budget during which every account is spoken as a proportion
of the price of sales. It is habitual for perpendicular psychoanalysis, during which every item
during a budget is scheduled as a proportion of a base number within the report, to form
23
assessment easier. Common size earnings statements psychoanalysis makes it easier to ascertain
what’s motivating a corporation’s profits and evaluated that recital to its peers. Through
appearing at how that recital has been altering in excess of instance, common size monetary
proclamations help investor’s mark trends that a raw fiscal statements may not expose. Huge
revolutionizes within the proportion of revenue employed by various expenditure in excess of a
specified time of your time might be a symbol that the trade sculpt is altering, or that
industrialized expenses are altering.
3.3 Trend Analysis:
Trend analysis is a method utilized in methodical psychoanalysis those efforts to forecast the
longer phrase stock price actions supported in recent time’s experiential trend data. Investigation
is predicated on the consideration that what went on contained by the past provides businessman
a thought of what is going to occur within the prospect. Analysis may be a sort of parallel
psychoanalysis. In engages calculating trend portion for a sequence of monetary statistics and is
a difference on the utilization of proportion alters. In psychoanalysis, base time refers just single
consecutive time, not the preceding stage of study period.
Trend psychoanalysis tries to discover a trend like a marketplace sprint and ride that trend
awaiting information advocates trend hitch, like a bull-to-bear marketplace. Psychoanalysis is
useful as moving with trends plus not next to them will cause of revenue for a financier. A trend
is that the common track the marketplace is captivating through a particular stage of your time.
Trends are often mutually upward and downward concerning bullish and bearish markets
correspondingly. Whereas there's no particular least amount of your time needed for a track to be
measured a trend the longer the track is sustained the additional prominent the trend.
3.3.1 Trend Analysis of Balance sheet:
Balance sheet is a pecuniary statement of an organization’s monetary situation at a particular

point in time. The accounts listed help determine if the corporate is facing any sort of financial
stress. When psychoanalysis is performed, a corporation is in a position to ascertain if its
24
pecuniary situation is improving or declining based on the share vary within the balance sheet
accounts. To work out the change, a corporation will check out the dollar amount of balance
sheet accounts over 2 or more years.
3.3.2 Trend Analysis of Income Sheet:
Parallel analysis is a financial statement study method that views alters within the amounts of
equivalent monetary report substance in excess of a stage of your time. It’s a helpful gizmo to
gauge the trend circumstances. The statements for 2 or additional times are utilized in parallel
psychoanalysis. The initial stage is typically utilized because the base time and therefore the
substance on the statements intended for each afterward periods are compared by means of
substance on the statements of the bottom stage. Generally the differences are exposed mutually
in dollars as well as proportion.
25
Chapter: 4
Financial Performance of Rupali Bank Ltd
26
1.1 Ratio Analysis:
4.1.1 Liquidity Ratio:
Liquidity Ratio
Particular 2018 2019 2020 2021 2022
Cash Ratio 0.008 0.007 0.007 0.006 0.008
Cash to Asset 0.066 0.065 0.066 0.051 0.049
Cash to Deposits 0.078 0.079 0.079 0.061 0.059
Loans to Total Deposit 0.555 0.623 0.644 0.634 0.737
Loans to Total Asset 0.468 0.520 0.538 0.533 0.614
LIQUDITY RATIO
Cash RatioCash to AssetCash to DepositsLoans to Total DepositLoans to Total Asset
0.737
0.644
0.634
0.623
0.614
0.555
0.538
0.533
0.520
0.468
0.079
0.078
0.079
0.066
0.066
0.065
0.061
0.059
0.051
0.049
0.008
0.006
0.008
0.007
0.007
2018 2019 2020 2021 2022
Interpretation: In accounting, the term liquidity is defined because the ability of a corporation
to satisfy its financial obligations as they are available due. The cash ratio or cash coverage ratio
is a liquidity ratio that indicates a firm's ability to pay off its current liabilities with only cash and
cash equivalents. Cash Ratio of RBL 2022 was 0.008 and 2018, 2019, 2020, 2021; it had been
0.008, 0.007, 0.007 & 0.006. So 2022 was increased cash ratio, it had been good than previous
year for the RBL. Cash to Asset and cash to deposit decreased. Loans to Total Deposit and Loans
to Total Asset increased.
27
4.1.2 Asset Activity Ratios:
Assets Activity Ratios
Particular 2018 2019 2020 2021 2022
Total Assets turnover 0.051 0.041 0.044 0.039 0.038
Fixed Asset Turnover 0.516 0.435 0.497 0.472 0.502
ASSETS ACTIVITY RATIOS

Total Assets turnoverFixed Asset Turnover
0.516
0.502
0.497
0.472
0.435
0.051
0.044
0.041
0.039
0.038
2018 2019 2020 2021 2022
Interpretation: The asset turnover ratio is calculated by dividing total interest income by
average total assets. Interest income, found on the income statement, are used to calculate this
ratio returns and refunds must be backed out of total sales to measure the truly measure the firm's
assets ability to generate sales. RBL’s Total Assets turnover in 2022 was 0.038; in 2019, 2020,
2021 year TAT has decreased than 2018. It was bad sign of RBL. In fixed asset turnover and
fixed asset turnover similar thing happened.
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4.1.3 Efficiency ratio:
Efficiency Ratios
Particular 2018 2019 2020 2021 2022
Interest Income to Expense -0.012 -0.010 0.017 0.010 0.000
Operating Expense to assets 0.016 0.022 0.019 0.018 0.019
Operating Income to assets 0.002 0.002 0.002 0.003 0.002
Operating Expense to Revenue 0.654 1.122 0.573 0.722 0.825
EFFICIENCY RATIOS
Interest Income to Expense Operating Expense to assets
Operating Income to assets Operating Expense to Revenue
1.122
0.825
0.722
0.654
0.573
0.022
0.019
0.018
0.016
0.017
0.019
0.010
0.002
0.002
0.003
0.002
0.002
0.000
-0.012
-0.010
2018 2019 2020 2021 2022
Interpretation: Efficiency ratio means how effectively an organization can manage their
customer and supplier to recover money or paid. From this graph we can saw that from 2020 to
2021. Interest Income to Expense ratio increased last 2 years. But in 2022, it was 0.00.
Operating Expense was increasing but Operating Income was decreasing which is bad. In last 2
years operating expense to revenue was increasing which is bad for RBL.
29
4.1.4 Profitability Ratio:
Profitability Ratios
Particular 2018 2019 2020 2021 2022
Return on Asset 0.08% -0.36% 0.16% 0.09% 0.11%
Return on Equity 1.8% -10.2% 4.5% 2.4% 3.3%
Return on Deposit 0.09% -0.43% 0.19% 0.11% 0.14%
Return on Shareholders Capital 1.8% -10.2% 4.5% 2.4% 3.3%
Interest Spread 4.2% 2.3% 4.0% 3.3% 1.6%
Net Interest Margin -0.57% -0.51% 0.94% 0.55% 0.01%
Net operating Margin 4% 4% 5% 6% 5%
PROFITABILITY RATIOS
Return on Asset Return on Equity Return on Deposit
Return on Shareholders CapitalInterest SpreadNet Interest Margin
Net operating Margin
4.5%
4.5%
4.2%
4.0%
6%
3.3%
3.3%
3.3%
0.94%
5%
0.55%
2.4%
2.4%
2.3%
0.14%
0.08%
0.09%
0.09%
0.11%
0.11%
0.19%
0.16%
0.01%
1.8%
1.8%
1.6%
5%
4%
4%
2018 2019 2020 2021 2022

-0.36%
-0.43%
-0.51%
-0.57%
-10.2%
-10.2%
Interpretation: Profitability ratios are a category of financial grids that are used to assess
business’s ability to create earnings compared to its expenses and other relevant costs incurred
during a specific time. Return on assets (ROA) is a financial ratio that appears the percentage of
profit an organization earns in related to its overall resources. It is generally define as net income
divided by total assets. Return on Assets (ROA) and return on deposit in 2018 to2022 is unstable
so the condition is not good; the return on equity ratio or ROE is a profitability ratio that
calculates the ability of an organization to generate profits from its shareholders investments in
the firm. Return on Equity 2020 was 5% and year 2022 was 3% that is decrease from 2020.
Interest spread quite stable. Return on shareholder capital decreased 2020 to 2021. But in 2022 it
increased. Net interest Margin was going positive 2020 to 2021. But it seems it is going to
30
negative again in 2022. Operating profit margin is a calculation of what portion of an
organization's revenue is left over after paying for variable costs of production such as wages,
raw materials. In last 2021 it was good but decreased in 2022. The operating profit margin is
decrease in 2022 which was 5% and it is less than previous year which is bad for RBL.
4.1.5 Credit Risk Ratios:
Credit Risk Ratios
Particular 2018 2019 2020 2021 2022
Equity to Assets 0.043 0.035 0.035 0.037 0.034
Equity to Net Loans 0.091 0.068 0.065 0.070 0.056
CREDIT RISK RATIOS

Equity to Assets Equity to Net Loans
0.091
0.070
0.068
0.065
0.056
0.043
0.037
0.035
0.035
0.034
2018 2019 2020 2021 2022
Interpretation: Credit risk is measured as state in of the overall ability of the buyer to repay the
loan. The Equity Ratio is a quality gauge of the level of leverage used by an organization. The
Equity Ratio indicates the portion of the total assets that are capitalized by stockholders, as
opposed to creditors. The Debt ratio in 2018 to 2021 it was increased 0.070; but in 2022 it was
0.056 that was bad to RBL. Debt to equity ratio in 2019 to 2020 it was stable. In 2022 it
decreased which is bad.
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4.1.6 Other Ratios:
Others Ratio
Particular 2018 2019 2020 2021 2022
Capacity Ratio 0.474 0.524 0.540 0.535 0.617
Cash Position Indicator 0.908 0.900 0.901 0.891 0.882

Leverage Ratio 0.0591 0.0594 0.0600 0.0463 0.0429
OTHERS RATIOS
Capacity Ratio Cash Position Indicator Leverage Ratio
0.908
0.901
0.900
0.891
0.882
0.617
0.540
0.535
0.524
0.474
0.0591
0.0594
0.0600
0.0463
0.0429
2018 2019 2020 2021 2022
Interpretation: in 2018 capacity ratio was good but from 2019 it was going up from its
standard. Cash position indicator is stable. Leverage ratio is going down which is good for RBL.
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4.2 Common Size of Balance sheet:
Rupali Bank Limited
Balance Sheet
Common Size Analysis
Particulars 2018 2019 2020 2021 2022
Cash 115% 137% 122% 54% 84%
In hand (Including foreign currencies) 12% 13% 11% 5% 11%
Balances with Bangladesh bank and sonali bank (Including foreign currencie 103% 124% 111% 49% 73%
Balance with other banks and financial institution 114% 143% 227% 149% 81%
In Bangladesh 112% 142% 226% 146% 72%
Outside Bangladesh 2% 1% 1% 3% 9%
Money at call and short notice 36% 15% 0% 12% 0%
Investment in shares & securities 483% 503% 337% 191% 362%
Government 371% 364% 200% 103% 218%
Others 112% 139% 137% 88% 144%
Loans, cash credits, overdrafts/General Investments 10% 9% 5% 2% 5%
Bills discounted and purchased 828% 1093% 1000% 565% 1056%
Account Receivables 82% 88% 69% 32% 49%
Land, building, furniture and fixtures (Including leased assets) 173% 194% 164% 86% 129%
Other assets 1748% 2085% 1850% 1058% 1711%
Total fixed Assets 9% 8% 17% 16% 41%
Total assets 100% 100% 100% 100% 100%
Borrowings from other banks, financial institutions and agents 0% 0% 1% 2% 2%
Current /Al-Wadeeah current and other deposit accounts 6% 5% 5% 9% 6%
Bills payable 1% 1% 1% 1% 1%
Savings deposits/Mudaraba Savings Deposits 16% 18% 18% 17% 17%
Mudarabba/ Term and Fixed deposits 62% 60% 59% 57% 59%
Total Deposits 84% 83% 83% 84% 83%
Other liabilities 11% 13% 12% 11% 11%
Total liabilities 96% 96% 97% 96% 97%
Capital /Shareholders'' Equity: 4% 4% 3% 4% 3%
Paid up capital 1% 1% 1% 1% 1%
Share Money Deposit 1% 1% 1% 1% 1%
Statutory reserve 1% 1% 1% 1% 1%
Revaluation Reserve on Govt. Securities/ Revaluation Reserve 0% 1% 1% 0% 0%
Assets Revaluation Reserve 0% 0% 0% 0% 0%
Retained earnings 1% 0% 0% 0% 0%
General reserves and others 1% 0% 0% 0% 0%
Total Equity 4% 4% 3% 4% 3%
Total liabilities and shareholders' equity 100% 100% 100% 100% 100%
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Rupali Bank Limited
Balance Sheet
Common Size Analysis
Particulars 2018 2019 2020 2021 2022
Cash 115% 137% 122% 54% 84%
In Bangladesh 112% 142% 226% 146% 72%
Government 371% 364% 200% 103% 218%
Others 112% 139% 137% 88% 144%
Other assets 1748% 2085% 1850% 1058% 1711%
Total fixed Assets 9% 8% 17% 16% 41%
Total assets 100% 100% 100% 100% 100%
Bills payable 1% 1% 1% 1% 1%
Total Deposits 84% 83% 83% 84% 83%
Paid up capital 1% 1% 1% 1% 1%
Total Equity 4% 4% 3% 4% 3%
34
Interpretation: The common statistic for a common-size balance sheet study is total assets. As
state in accounting calculation, this also equals total liabilities and shareholders’ equity, making
either term immutable in the study. It is also possible to use total liabilities to identify where a
company’s obligations lie and whether it is being conservative or risky in managing its debts.
Cash in hand is decreasing from year 2020 to 2021 but in 2022 it increased. In 2018 to 2020 it
was stable but in 2021 it decrease. So it can say that cash in hand is not stable. Investment in
long term asset from 2018 to 2022 has decreased.
35
4.3 Trend Analysis:
Rupali Bank Limited
Balance Sheet
Trend Analysis
Particulars 2018 2019 2020 2021 2022
Cash 100% 111% 127% 120% 124%
In Bangladesh 100% 118% 243% 332% 108%
Government 100% 91% 65% 71% 99%
Others 100% 115% 146% 199% 216%
Other assets 100% 109% 127% 152% 148%
Net fixed Assets 100% 105% 114% 127% 126%
Total assets 100% 111% 127% 154% 165%
Bills payable 100% 130% 151% 232% 341%
Total Deposits 100% 110% 126% 153% 163%
Paid up capital 100% 115% 126% 157% 173%
Total Equity 100% 92% 104% 134% 133%
NAV 100% 80% 82% 78% 77%
36
Rupali Bank Limited
Income statement
Trend Analysis
Particulars 2018 2019 2020 2021 2022
Interest income 100% 88% 110% 116% 122%
Interest paid on deposits and borrowings 100% 89% 78% 90% 110%
Net interest income 100% 100% -211% -151% -4%
Income from investments 100% 87% 95% 94% 128%
Commission, exchange and brokerage Income 100% 102% 106% 75% 101%
Other operating income 100% 100% 133% 201% 174%
Total operating income 100% 89% 171% 156% 156%
Rent, Taxes, Insurance, Electricity etc. 100% 114% 134% 129% 142%
Salaries and allowances 100% 172% 162% 192% 197%
Legal Expenses 100% 127% 101% 118% 109%
Postage, Stamps, Telecommunication etc. 100% 83% 94% 106% 128%
Stationery, Printing, Advertisement etc. 100% 117% 93% 107% 103%
Directors' Fees and Expenses 100% 152% 157% 146% 153%
Salary and allownaces paid to Managing director/Chief Executive 100% 287% 581% 581% 581%
Auditors' Fee 100% 176% 168% 201% 280%
Depreciation and Repairs to Bank's Assets 100% 117% 113% 123% 136%
Other Expenses 100% 145% 153% 174% 251%
Total operating expenses 100% 152% 150% 172% 197%
Operating Profit 100% -31% 211% 125% 79%
Profit before provision 100% -31% 211% 125% 79%
Specific provision (Loan and Advances) 100% 0% 387% 205% 109%
Off balance sheet items 100% 0% 14% 0% 54%
Diminution in value of investment 100% 200% 1599% 4017% 137%
Others Provision 100% 0% 159% 40% 8%
Total provision 100% 2% 276% 165% 69%
Profit for the year before taxation 100% -77% 123% 71% 93%
Current Tax 100% 73% 144% 88% 176%
Deferred tax 100% 38% 68% 28% 13%
Provision for tax 100% 46% 86% 42% 51%
Net profit after tax for the year 100% -512% 255% 173% 241%
EPS 100% -464% 186% 115% 160%
Interpretation: Trend psychoanalysis is a feature of practical study that tries to foretell the
prospect association of a hoard depends on history information. Trend psychoanalysis is
depending on the thought that what has occurred in the history provides traders a thought of what
will occur in the prospect. Cash in hand has increasing average from 2018 to 2022 and value is
100% to 150%. Investment in long term assets is has increased which is good for RBL. Net
profit after tax has increased from 2018 to 2019 then it decrease randomly which means that
company is facing loss few year. But in 2022 it was increased.
37
Chapter: 5
Problems, Recommendation & Conclusion
38
5.1 Problems Identified: The findings are as follows-
1. The cash to asset and cast to deposit ratio was decreasing 2018 to 2022, RBL need to
concern about it as those ratios is the indicator of liquidity position of the company. Cash
ratio is quite stable.
2. The company’s total assets turnover & fixed asset turnover were also fluctuating in 2018
to 2022. Since, those turnover was often use as an indicator of the efficiency, the
company should take care of it.
3. Efficiency ratios were not stable. The Condition of efficiency was very bad 2018 to 2022.
4. Bank’s Net operating margin was fluctuating in 2018 to 2022. But last year in 2022 it
was decreased. That means in last year, operating and non-operating expenses were
increased which is not good for the Bank.
5. Net profit margin of the bank was very poor.
6. There is no return on assets and ROE is fluctuating 2018 to 2022 which is bad for Bank.
7. Credit risk Ratios and Others Ratios also was fluctuating which indicate bad condition of
RBL.
39
5.2 Recommendations for RBL:
It is really strenuous to draw advice based on three months’ work experience and it would be
audacious of me to give advice to the people who have better knowledge and expertise than me.
Still, there are few points in which I think the organization can improve:
1. The bank should focus on cash to asset ratio and cash to deposit ratio and figure out
the way to Increase it. If company falls in a liquidity crisis, it will not be able to reply
current obligations.
2. The bank should focus on the utilization of its assets in the coming years so that total
asset turnover, fixed asset turnover could increase in coming years.
3. It should need to increase its net operating profit margin by decreasing expenses and
using equity capital to cover liability increasing rate and gain its goal.
4. The company should focus to increase efficiency of their operation. Inventory.
5. The bank should give focus on to add to the mesh income edge.
6. ROA is the indicator how bank use its asset to generate returns. So RBL needs to pay
attention to increase ROA. Return on Equity (ROE) is fluctuating from 2018 to
2022.It was bad for RBL. The Rupali Bank Ltd should focus on increasing their ROE.
7. Credit risk ratio was increasing than its standard, they should focus on it.
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5.3 Conclusion:
To bearing in mind this statement at first I would like to mention, ‘Time is cash’. This is the way
planet acts at the present time. In this spirited planet progress will merely occur if correct choice
creates at correct time for the banks as like as every monetary institution. Financial expansion as
well as fiscal growth is intimately connected. For this reason the confidential money-making
banks are rolling significantly. RBL is working in various distant areas. They are moreover
contribution a broad variety of universal banking action other than as of my study psychoanalysis
I originate that buyers aren't content with the majority of their service. While they’re contribution
service moderately low down cost but thanks to missing in correct advisement actions plus since
of near to the ground overhaul class customer’s fulfillment stage is bad. One more obsession
organization should review that RBL is giving particular saving system with moderately superior
payback in the middle of additional banks which may be a must needed step for long-standing
spot in monetary marketplace. At the present additional banks are approaching within the
monetary marketplace in arrange that savings will split more. Consequently, it is lofty time to
keep on a number of lasting clientele by giving particular savings plan or else in prospect
quantity of savings may approach downward. Lastly, I can speak civilizing excellence of
overhaul is that the sole key for the reason that there are not a few alternative currently. In
arrange to extend end user approval point RBL ought to present correct guidance to the workers
to show member of staff actions throughout an acceptable point. Furthermore, they require
extending advertisement actions and the majority significantly workers ought to present extra
priority to their customers also as rapidity in servicing are really requisite.
41
References:
1. Annual Report of Rupali Bank Limited 2018-2022
Web Site:
[1]. http://www,rupalibank.org
[2]. http://lankabd.com
[3]. http://www.google.com
[4]. https://www.wikipedia.org
42

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Internship report on Financial Performance Analysis

of Rupali Bank Limited

Date of Submission: December 23, 2020

Md. Kamruzzaman Didar

Subject: Submission of Internship Report.

S.M. Ziaul Hasan Parash

I wish his each achievement in life.

Mr. Md. Kamruzzaman Didar

1.3 Scope of the study:

1.4 Objectives of the Study:

1.5.1 Data collection:

2.2 Corporate Vision:

2.3 Corporate Mission:

2.5 Organizational Structure:

2.8 Types of Accounts & deposit Products:

A few niceties are as follows-

Opening of Fixed Deposit:

Other Types of Deposit:

2.9 Account Opening & closing Section:

Official procedure for opening an account:

2.11 Utility services:

Several kind of assortment of bills in RBL Asad gate branch:

2.12 Cash Section:

 Generally two kinds of credit Rupali Bank are giving.

 Listing of necessary credentials required to be relevant for a loan:

 Major duty of this section-

 Task of Foreign Exchange-

 Credentials necessary for opening L/C:

 Demand correspondence to open L/C

 Telegraphic or Telephonic Transfer:

 Cash in hand and at banks

 Cash to Deposits= Cash

 Loans to Total Asset= Loans

3.1.2 Asset Activity Ratios:

 Equity Turnover: 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐼𝑛𝑐𝑜𝑚𝑒

 Current Asset Turnover: 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐼𝑛𝑐𝑜𝑚𝑒

 Fixed Asset Turnover: 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐼𝑛𝑐𝑜𝑚𝑒

3.1.3 Efficiency Ratio:

 (Interest Income− Interest EXpense)

 Operating Expense to assets= Operating EXpense

 Operating Expense to Revenue= O𝑝𝑒𝑟𝑎𝑡i𝑛g 𝐸𝑥𝑝𝑒𝑛𝑠𝑒

 Return on Asset= Net Income

 Return on Equity= Net Income

 Return on Deposit= Net Income

 Return on Shareholders Capital= Net Income

 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑜𝑛 𝐿𝑜𝑎𝑛 Interest on Deposit

 (𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐼𝑛𝑐𝑜𝑚𝑒− 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒)

 Net operating Margin= Operating Income

3.1.5 Financial Risk Ratio:

Common size psychoanalysis is an instrument to assess entity financial statement objects or a

3.2.1 Common Size of balance sheet:

3.2.2 Common Size of Income Statement:

3.3 Trend Analysis:

3.3.1 Trend Analysis of Balance sheet:

Balance sheet is a pecuniary statement of an organization’s monetary situation at a particular

3.3.2 Trend Analysis of Income Sheet:

4.1.1 Liquidity Ratio:

2018 2019 2020 2021 2022

Assets Activity Ratios