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On
Capital structure and profitability analysis

Company Overview
Dhaka Bank:
History
The Bank was incorporated as a public limited company under the
Companies Act. 1994. The Bank started its commercial operation on July
05, 1995 with an authorized capital of Tk. 1,000 million and paid up capital
of Tk. 100 million.
Strategic Objectives
Their objectives are to conduct transparent and high quality business
operation based on market mechanism within the legal and social
framework spelt in our mission and reflected in our vision.
Their greatest concerns are their customers to provide them continually
efficient, innovative and high quality products with excellent delivery
system.

Products and Services

of Dhaka Bank Ltd.

Products/Services
Capital structure
The capital structure of Dhaka Bank
Ltd. is quite strong. Its authorized
capital is Tk 6,000 million and paid up

Products

capital is Tk 2,128 million. Market

price per share is tk 780.
Liability Products:
Savings Bundled Product
Deposit Pension Scheme
Special Deposit Scheme
Deposit Double Scheme
Gift Cheque

Services:
Internet Banking
SMS Banking
Locker
ATM Card
VISA Credit Card
Utility Bill
BBbILLBill/TuitioFeeCollection

Asset Products:
Home loan
Personal loan
Vacation loan
Car loan
Any Purpose loan

Company overview of Beximco

Textile.

IFIC Bank
2.9 History
IFIC Bank operates as a scheduled Bank under banking license
issued by Bangladesh Bank, the central bank of Bangladesh. This
Bank is having an authorized capital of Tk. 500 million and Paid up
Capital Tk. 406.44 million sponsored by 14 members of board of
directors.

Capital Structure Analysis

Product and Services
Besides traditional Banking services, IFIC Bank Limited has added a wide range of
products/services in its service portfolio. Various products & services offered by IFIC Bank
Ltd. include:
Deposit Schemes

Loan Schemes

Current Account Deposits

General Loan Scheme;

Savings Bank Deposit

Lease Finance

Fixed Deposit

Consumer Credit Scheme

Short Term Deposit

Car Loan

Monthly Benefit Deposit

Scheme

Loan Against Salary

Special Deposit Scheme

Doctors loan

Pension Savings Scheme

House Building
Loan/Apartment Loan
Scheme

Double Benefit Scheme

SME Loan
Credit Card

Deposit
The deposit base of the Bank continued to register a steady growth and stood at
Tk.60, 918 million excluding call as of 31 December 2009 compared to Tk. 56,986
million of the previous year registered a 7% growth.

Deposit Mix
Deposit Mix of the Bank as
of 31 December 2009 was
as follows:

Sources and Uses of Fund

Sources of fund and uses of fund of

the Bank as of 31 December 2009
was as follows:

Geographical location wise loans and advances

From the graph it is seen that Dhaka bank provides most of the portion of loan
and advances in urban area, whereas they provide a little portion in rural area.
As we seen before that this bank provide more loan and advances in other
industries than agricultural industries. Because of this their contribution to
urban area is more than rural area.

Credit/ deposit Ration

Credit to deposit ratio measures what portion of deposit collected from
surplus unit lend to deficit unit. Greater this ratio shows greater ability
to utilize its liability to revenue sector.
Credit to deposit ratio has increased from 82.03% to 87.21% in 2007 to
2008. Where as it has decrease from 87.21% to 86.85% in 2008 to
2009. This ratio is increasing but not a steady rate.

Non Performing Loan

As of 31 December 2009, 94.43% of the total Bank's loan portfolio was
regular while only 5.57% of the total portfolio was non-performing as
compared to 3.84% of 2008. Bank made required provision as of 31
December against performing and non -performing loans as per rate
and classification norm provided by Bangladesh Bank. The volume of
non-performing loans stood at Tk.2, 946 million in 2009 from Tk. 1,908
million in 2008. Of the total loan provision of Tk.2, 113 million, Tk.625
million was general provision, which was 30% of the total provision.
The rest Tk.1, 488 million was against the classified accounts.

Investment

The Bank's Investment during the year

2009 were mostly in long term
Government Securities which stood at
Tk.8,660 million as against Tk, 7,239
million making a growth of 20% over the
last year.

Income from Investment

From the graph we can see that return on
investment in 2008 is 9.18% and 10.63% in
2009. so the firm gradually improving their
income from investment.

IFIC Bank
Deposit Mix
From the Graph it can be said that the maximum portion of deposit comes from fixed
deposit 44% of total deposit, 23% of that comes from current deposit. Where saving
deposit and other deposit provides 18% and 15% respectively.

Performance of Different Types of

Loans
2009
Type of Loan

Amount ( In
Lac)

Loan General

2008
%

Amount( In
Lac)

2007
%

Amount( In
Lac)

20.0

7191

29.35

6155

23.69

3833

1902

7.76

2240

8.62

2159

Lease finance

2864

11.69

2917

11.23

2978

Hire Purchase

5632

22.99

5922

22.79

5918

Cash Credit

4198

17.14

3554

13.68

2155

321

1.31

261

423

2.21

2387
24496

9.75
100

4933
25982

18.99
100

1671
19137

8.73
100

House
building

SOD (Work
order)
SOD General
Total

3
11.2
8
15.5
6
30.9
2
11.2
6

Loans in Different Economic Sectors

Sector

2009

2008

2007

Amount ( In Lac)

Amount ( In Lac)

Amount ( In Lac)

Garments

7342

29.97

7131

27.45

7103

37.12

Manufacturing

8875

36.23

6954

26.76

3358

17.55

Service

352

1.44

553

2.13

948

4.95

Trade

1362

5.56

15

0.06

16

0.08

Transportation

2713

11.08

417

1.60

473

2.47

House building

1669

6.81

329

1.26

331

1.73

Investment

405

1.65

1377

5.30

594

3.10

IT service

0.04

2997

11.54

2961

15.48

Importer

521

2.13

1713

6.59

1984

10.37

Exporter

316

1.29

347

1.34

483

2.52

Personal

933

3.81

4149

15.97

885

4.63

24496

100

25982

100

19137

100

Total

Investment

Major portion of the investment of IFIC Bank

was in the Government sector. The investment
of the IFIC Bank is increasing. In the year of
2008 it was Tk 3515.48 million and in 2009 it
increase to Tk 9002.95 million.

Income from investment

Income from investment of IFIC Bank

is decreasing that we can see in the
graph.
The
return
on
investment was 13.22% in 2008 and it i
s decreased to 11.68% in 2009.

Findings

Both Dhaka Bank and IFIC Bank collected maximum deposit from fixed deposit,
69% and 44% respectively.
Dhaka Bank provides loan to the textile and garments industry (18%) and IFIC
Bank provides loan maximum in manufacturing sector 36%
Dhaka Bank provide maximum amount of loan to Dhaka region.
Credit to loan ratio is increasing for both company, it is higher in 2009 for IFIC Bank
91% than Dhaka Bank 86.85%.
Interest income from Loan and advance is higher for Dhaka Bank 6907.66 million
than IFIC Bank 3872.14 million.

Findings

Non performing loan is for Dhaka Bank is 5.57% which is less than IFIC Bank
8.68%.
The income from investment of Dhaka Bank is increased to 10.63% from 9018%.
But reverse situation for IFIC bank their income from investment is decreased to
11.68% from 13.22%. But in compare to this two Banks the IFIC Bank is in good
position in 2009.
Both the company invests major portion of investment money in government sector.

Recommendation

Non performing loan is higher more or less for both the bank. They should give
more emphasize on better monitoring after paying loan to the borrower.
The income from investment is decreasing for Dhaka Bank they should invest in
more profitable sector, and they should do proper analysis before investment.
In government sector, such as T-bill, the return is so low so they should reduce the
amount from government sector and invest in profitable portfolio so that their profit
from investment is increased.
Dhaka bank is less capable to provide loan in compare to deposit, so they should
seek potential eligible borrower in which they can earn extra profit.

Thank You All