Intern Report of SK Mahmuda Rahman

An Internship report of
A Comparative financial analysis of

Jamuna Bank Limited
Submitted To
Suzona Asad
Lecturer,
Faculty of business administration,
Eastern University,
Dhaka, Bangladesh.
Submitted By
SK. Mahmuda Rahman
ID: 151 200 087
Bachelor of Business Administration
Eastern University
Submission Date: 5th January 2018

A COMPARATIVE FINANCIAL ANALYSIS OF JAMUNA BANK
I. Letter of Transmittal
To,
Suzona Asad
Lecturer
Faculty of business administration,
Eastern University
Subject: Submission of Internship report on ‘A Comparative Financial

Analysis of Jamuna Bank’.
Dear Madam,
You will be glad to know that I have recently completed my Internship report
on ‘A Comparative Financial Analysis of Jamuna Bank’ as a requirement to
complete my BBA from Eastern University.
The internship program was very important for me. I have learnt a lot of
practical lesson that helps me to compare between the real life experience
from the Jamuna Bank Limited and the BBA program lessons that I had read
learnt during last 4 years.
I appreciate all your helps during my internship at Jamuna Bank Limited. The
guidelines that you provided me was proved very important for me to write
the report.
I want to assure you that I have followed all the guidelines that you provided
to include in this report and I would be highly obliged if you accept my
internship report.
Your obedient Student,
SK. Mahmuda Rahman

ID: 151 200 087
Bachelor of business administration
Eastern University
II. Declaration of student

Myself SK. Mahmuda Rahman, the student Eastern University, (Major in
Accounting), have finished my internship program from Jamuna Bank
Limited. I have completed the report based on a comparative financial
analysis of Jamuna Bank Limited. I want to declare here that all the data that
are used I the report are valid, relevant and true. All the financial information
were taken from valid source during my internship period. I want to add
that, nothing is copied directly from anywhere in this report.
So, I am declaring that the report is made by me and it is an original one that
includes all the valid information of Jamuna Bank Limited.
………………………………….
SK. Mahmuda Rahman
ID: 151 200 087
Bachelor of business administration
Eastern University
III. Letter of authorization

IV. Acknowledgement
I would love to start thanking the Almighty Allah for all the blessings and
strength that I have received till now and be able to complete my BBA and
internship program successfully.
At first, I would like to thank my internship supervisor Suzona Asad,

Lecturer at Eastern University for all the support and guidelines she given to
me to write a well-structured internship report. I would not possible for me
to complete the report without the time she given from her busy schedule.
She given me the topic that I trust that will fulfil my learnings of accounting
major from the BBA program and encouraged me a lot to work on this report
topic.
I also like to show my gratitude to Fazlul Quader Md. Bashet, First

assistance vice president of Jamuna Bank Limited for all the guidance and
help during my 3 months of internship at Jamuna Bank. He supervised me to
get all the annual report and information that were very necessary for my
report.
At last, but not the least I want to thank all the employee, staffs of Jamuna
Bank Limited to relate me with every task where I faced difficulties to
understand. They felt me so familiar with the bank.
Thank You All…

V. Executive Summary
Jamuna Bank Ltd. provides banking services through its 126 branches in
Bangladesh. The commercial banking exercises of the bank add an extensive
variety of services including preparing deposits, giving investment offices,
discounting bills, leading cash transactions and foreign exchange
transactions, and performing other related services, for example,
safekeeping, accumulations, and issuing guarantees, acknowledgments and
letter of credit.
I have performed various duties as an intern as well as gathered information

that can enrich my internship report. This knowledges were so important to
me to compare the knowledge I have earned from my University from a
practical financial institution.
I tried to provide an in-depth analysis of financial analysis of jamuna bank

using its annual report data of the year 2013-2017. At first, I had set some
objectives because without objectives no report can fulfil its need. After then,
I will discuss the basic information that are necessary to know about the
Jamuna Bank Limited. Finally, I will show all the analysis and interpretation
using financial ratios and some other valuable tools to show the comparison
of financial information between the years of 2013-2017. Financial analysis
is logical and mathematical way to show the overall financial performance
of the bank during these years.
At the end, I will share some recommendations that I think, can help the bank
to improve their financial performance if I find any improvements what are
necessary for the bank.
VI. Table of Contents
I. LETTER OF TRANSMITTAL 1
II. DECLARATION OF STUDENT 1
III. LETTER OF AUTHORIZATION 1
IV. ACKNOWLEDGEMENT 1
V. EXECUTIVE SUMMARY 1
VI. TABLE OF CONTENTS 1
VII. ABBREVIATIONS 1
Chapter 1: Introduction
INTRODUCTION 1
1.1 BACKGROUND OF THE STUDY 1
1.2 OBJECTIVES OF THE STUDY 2
1.3 SIGNIFICANCE OF THE STUDY 2
1.4 SCOPE OF THE REPORT 2
1.5 LIMITATIONS OF THE REPORT 3
Chapter 2: Literature Review

2.1 COMPANY PROFILE 5
2.1.1 The vision of Jamuna Bank Limited 6
2.1.2 The Mission of Jamuna Bank Limited 6
2.1.3 The Values of Jamuna Bank Limited 7
2.1.4 The Goals of Jamuna Bank Limited 7
2.1.5 Organizational Structure 8
2.1.6 Products and services provide by Jamuna Bank Limited 9
2.2 REVIEW OF OTHER RELEVANT STUDIES 10
Chapter 3: Methodology
3.1 DESCRIPTION AND COLLECTION OF DATA 13
a. Primary Data: 13
b. Secondary Data: 13
3.2 PERIOD OF THE STUDY: 13
3.3 SAMPLE: 13
a. Design: 13
b. Size: 13
c. Selection Procedure: 13
3.4 ANALYSIS TECHNIQUES AND TOOLS: 14
a. Data validity: 14
Chapter 4: Results Findings and Analysis

4.1 PERFORMANCE ANALYSIS: HORIZONTAL AND VERTICAL ANALYSIS 16
4.1.1 Horizontal Analysis of Jamuna Bank Limited (Balance Sheet) 16
4.1.2 Vertical Analysis of Jamuna Bank Limited (Balance Sheet) 17
4.2 PERFORMANCE ANALYSIS THROUGH RATIO ANALYSIS 18
I. LIQUIDITY RATIO OF JAMUNA BANK LIMITED 18
a. Current Ratio 18
II. PROFITABILITY RATIOS OF JAMUNA BANK LIMITED 19
a. Return on Asset 19
b. Return on Equity 20
c. Net Profit Margin 21
III. LEVERAGE RATIOS OF JAMUNA BANK LIMITED 22
a. Debt ratio 22
b. Debt/Equity Ratio 23
c. Time Interest Earned Ratio 24
IV. VALUATION AND GROWTH RATIOS 25
a. Price Earnings Ratio 25
V. MANAGEMENT EFFICIENCY OF JAMUNA BANK LIMITED 26
A. TOTAL ASSET TURNOVER 26
4.3 SWOT ANALYSIS OF JAMUNA BANK LIMITED 27
Chapter 5: Conclusion and Recommendations

RECOMMENDATIONS 31
CONCLUSION 32
REFERENCE 33
VII. Abbreviations
JBL – Jamuna Bank Limited

BBA - Bachelor of business administration
ATM – Automated Teller Machine
ROA – Return on Equity
ROE – Return on Equity
P/E ratio – Price earnings ratio.
TIER – Time Interest Earned Ratio
Chapter 1.
Introduction
Introduction
Hearing the word ‘Bank’ we usually think of an institution that works with
money, but there are various types of banks in Bangladesh that are providing
various services that are just not only related to money, but also with many
other services. Some name of these banks are: Krishi Bank, Commerce bank,
Industrial bank, investment bank and so on.
All of these banks are special contributor of the economy of Bangladesh. The
commercial banks are usually profit making organization that takes money
from a lot of person or company, and invest them in a secure place all
together to generate a large scale of revenues. From these revenues, they
provide a pre-determined interest to the depositor who deposited money in
the bank. To survive in the competition in the Bangladeshi banking area, they
have to provide a lot of banking services to attract depositor. For all these
reasons, it is important for everyone to know a minimum knowledge on
banking services.
1.1 Background of the study

Internship is an essential part in Eastern University to fulfil the Bachelor of
business administration (BBA). Everyone has to complete the required
credit hours and then they are placed by the university to observe a practical
situation in a real workplace and provide a supervisor by the university who
always guides as student need to share their learning outcomes trough an
internship report.
I got an opportunity to work in Jamuna Bank Limited. My honourable

supervisor advised me to work on the topic ‘The comparative financial
analysis of Jamuna Bank Limited’ and guided me a lot during my internship
program. At the same time, I had gathered data that are required to my
report while working in the bank.
1
1.2 Objectives of the Study

All report must have some objectives or goals. Without objectives, no
report can be a meaningful one. I have set some objective and this
objectives are much related to the internship report topic of mine. I am
going to create my internship report with the following objectives.
a. General objective: This report is primarily created to achieve my BBA

degree from Eastern University.
b. Specific objectives:
1. To provide an overall idea of Jamuna Bank Limited.
2. To analyse the comparison of financial performance of Jamuna bank
using recent 5 years (2013-2017) of information.
3. To provide some recommendations where necessary to Jamuna Bank
that can improve its financial performance.
1.3 Significance of the study

This report will display the services to the reader that are performed by
the Jamuna Bank Limited, share the experiences I have earned and help
to the bank managers of Jamuna bank to know the financial performance
of the bank using various financial ratios and tools. This report also helps
university students to know how to analyse a bank’s financial
performance.
1.4 Scope of the report

The scope of the report is to know the financial performance of Jamuna
Bank Limited. The report will also give an overview of JBL, sharing the
Mission and vision of the bank as well as the services it’s providing
currently. However, this report will share the essence of current market
scenario of Jamuna Bank.
2
1.5 Limitations of the report

Though it’s a memorable opportunity for me to work in the Jamuna Bank, I
felt some difficulties while creating and gathering information for the report.
The limitations are listed below:
1. Due to secrecy and market competition banks official requested me

not to provide some information in the report.
2. High work pressure as a huge number of clients visit to the bank daily.
3. I felt it so difficult to collect data to create such an extensive report in
this three months.
4. There were a lot of information that can show more clearly the
financial performance of the bank, but the officers didn’t disclose them
for public use.
3
Chapter 2.
Literature Review
4
2.1 Profile of Jamuna Bank Limited
Jamuna Bank Limited (JBL) is a Banking Company enlisted under the

Companies Act, 1994 of Bangladesh with its Head Office at present at Hadi
Mansion, 2, Dilkusha C/A, Dhaka-1000 in Bangladesh. The Bank began
working from third June 2001.
The Bank gives a wide range of help to exchange, trade, industry and the
general business of Bangladesh. JBL's finances are additionally accessible for
the business visionaries to set up promising new pursuits and BMRE of
existing modern units. The bank was set up by a gathering of nearby business
people who are very much famous in the field of exchange, trade, industry,
and business in Bangladesh.
The Bank offers both ordinary and Islamic banking through assigned
branches. The Bank is being overseen and worked by a gathering of
profoundly instructed and proficient group with differentiated involvement
in finance and banking. The Management of the bank always centres on
comprehension and envisioning clients' needs. Since the need of clients is
changing step by step with the progressions of time, the bank tries its best
to devise techniques and acquaint new items with adapt to the change.
Jamuna Bank Ltd. has just accomplished huge advancement since its start.
The bank has effectively developed a reputation as one of the value specialist
organizations of the nation.
At present, the Bank has real-time Online banking branches (of both Urban
and Rural zones) arrange all through the nation having shrewd IT-backbone.
Other than conventional delivery focuses, the bank has ATMs of its own,
imparting to other accomplice banks and consortium all through the nation.
The operation hour of the Bank is 10:00 A.M. To 6:00 P.M. from Sunday to
5
Thursday with transaction hour from 10:00 A.M. to 4:00 P.M. The Bank
remains closed on Friday, Saturday and government holidays.
Being the third generation bank in the Bangladesh, Jamuna Bank Limited
centred on the following things.
Contineuous
Manage the
service on
Changes
Market Demand
Providing real
Human
clients value by
Resource
utilising the
Development
opportunities
Chart 1: Focuses of Jamuna Bank Limited
2.1.1 The vision of Jamuna Bank Limited

To become a leading banking institution and to play a significant role in the
development of the country.
2.1.2 The Mission of Jamuna Bank Limited

The Bank is promised for fulfilling differing necessities of its clients through
a variety of services at a focused cost, by utilizing the best technology and
giving timely administration to ensure a sustainable development, sensible
return, and contribution to the advancement of Bangladesh can be
guaranteed with an encouraged and expert group of employees.
6
2.1.3 The Values of Jamuna Bank Limited
Integrity Teamwork Quality Committment
Respect for
Fairness Harmony Courtesy
the individual
Business Unique Respectable

Ethics Culture Citizenship
Chart 2: Values of Jamuna Bank
2.1.4 The Goals of Jamuna Bank Limited

a. To gain and keep up the CAMEL rating strong.
b. To build up relationship banking and enhance benefit quality through
the advancement of Strategic Marketing Plans.
c. To guarantee a sufficient rate of rate of return to the investors.
d. To present completely computerized frameworks through the
combination of data innovation.
e. To stay the best amongst other banks in Bangladesh regarding
profitability and service quality.
f. To keep up satisfactory liquidity to meet developing commitments and
responsibilities.
g. To keep up an intensive development of business according to the image
of the Bank.
h. To guarantee ideal use of every single available asset.
i. To keep up the satisfactory control system.
j. To generate and hold the quality employees through an efficient HR
Management Framework.
7
k. To seek after a successful arrangement of management by guaranteeing

consistency with moral standards, straight-forwardness, and
responsibility at all dimensions.
2.1.5 Organizational Structure

The Jamuna Bank Limited has showed and developed efficient banking
structure like other commercial banks in Bangladesh. Their organizational
structure shows how the responsibilities, powers and roles are distributed
among different sector of the bank.
Organizational
Structure of JBL
Chairman Vice President Chief Advisor

Managing Director
Executive Senior Executive Vice president
Committee
Executive Vice president
Senior President
Vice President
Senior Assistant Vice President
Assistant vice President
Junior Assistant Vice President
Senior Executive Officer
Executive officer
First executive officer
Officer
8
2.1.6 Products and services provide by Jamuna Bank Limited

Jamuna Bank Limited provides various types of services to its clients such as
lease finance, clients credit scheme, monthly deposits scheme, and
Individual loan for women or entrepreneurs. Jamuna Bank introduce Q-Cash
service which is an ATM card that supports 24 hours banking services
through the cards. Jamuna Bank is providing the following services to its
clients.
Collection of Depositors Services related to

Loan services
Remittance schemes import and export
Investment Financing Islamic

Lease finance
Banking projects Banking
24 Banking Consumer
International Corporate
Service- Credit
Banking Banking
QCash Scheme
Personal loan Hire

for women purchase
Chart 3: Services provide by Jamuna Bank
9
2.2 Review of other relevant studies

To analyse the performances of Bangladeshi banking part, foreign and
national specialists attempted various investigations. Every one of these
examinations gives me the extraordinary knowledge to evaluate bank
financial performance by utilizing one of the fundamental indicators which
are various financial ratios.
In 2008, Pandey suggested that the most effortless approach to evaluating

the execution of a firm is to contrast its present ratio and the past. It indicates
me the direction of change and reflects whether the bank's financial
condition has enhanced, decreased or stayed steady after some time.
James brought up that financial ratios utilized by bankers, accountants,

investors, and shareholders to evaluate information exhibited on the
financial statements. Contingent upon the consequences of the evaluations,
bankers, and creditors may broaden or retract financing and potential
investors may alter the dimension of promise to a company. Money related
ratios are essential devices that judge the benefit, effectiveness, liquidity,
and dissolvability of an element.
In 2010, Van Horne and Wachowicz Jr stated that to evaluate a company's

money related condition and execution the budgetary expert needs to
perform "checkups" on different parts of an association's monetary
wellbeing. An apparatus oftentimes utilized these checkup is a budgetary
proportion.
At the same year, Qamruzzaman said that one can utilize financial
proportions to decide a company's liquidity, productivity, dissolvability, and
ampleness utilized monetary proportions to demonstrate the money related
position and execution investigation of Bank.
10
In 2011, Chowdhury and Ahmed saw that all the chosen private business
banks can accomplish a steady development of branches, worker, store,
credits, and advances, net salary, procuring per share during the time of
2012-2016. They show that the possibility of private business banks in
Bangladesh is brilliant.
According to Uppal (2013), with this expansion of rivalry in the banking

business, each bank is practicing to furnish their clients with better
administrations however much as could be expected to guarantee most
extreme satisfaction.
Evaluation of a bank's execution after a series of time, causes them to realize

how well they are actually fulfilling their clients and getting to be effective.
The financial performance of banks has in this way taken high need with
regards to Bangladesh. (Siddique & Islam, 2015).
If productivity is picked up in the banking site, it will make the nation locally
and globally more focused and equipped for generating more income and
work opportunities. A perfect evaluation of any bank requires a variety of
financial, economic, operational indicators.
11
Chapter 3.
Methodology
12
3.1 Description and Collection of Data

a. Primary Data: The primary information are collected from:
I. Through formal and informal conversation with the
officials of Jamuna Bank Ltd.
II. Knowledge earned by participating as intern in Jamuna
Bank Ltd.
III. Annual report 2013-2017
b. Secondary Data: The secondary information are collected not only

from the bank but also from some other sources, which I thought
important and can add value to my report.
I. Visiting websites of Jamuna Bank Ltd.
II. Various published books, articles of well-known experts.
III. Bank documents and yearly journals.
IV. Browsing internet.
3.2 Period of the Study: The study is conducting in November 2018.

The annual report of Jamuna Bank 2018 has not published yet. So
the report is created on all the recent data of Jamuna Bank of the
years 2013-2017.
3.3 Sample:
a. Design: To find out the report objectives in chapter 1, an exploratory

study based on qualitative measures was undertaken
b. Size: Collected previous five years of 2013-2017, financial ratios.
c. Selection Procedure: Data’s are selected in two steps,
I. Collected Annual reports of 2013-2018 from the bank.
13
II. Analysed the financial statements of each annual report

to find out the amount of variables what were necessary
for the analysis of this report.
3.4 Analysis Techniques and Tools:

I have created the report, analysed all the necessary ratios, using Microsoft
word 2018 and Microsoft excels default bar chart and pie chart and in
Universal APA Technique.
a. Data validity: all the data that are used inside this report are recent
and financial ratios are taken from the annual report of 2013-2017.
So, this data have validity for investors and bank managers to use in
their future decision making.
14
Chapter 4.
Results Findings and Analysis
15
4.1 Performance Analysis through Horizontal and

Vertical Analysis
4.1.1 Horizontal Analysis of Jamuna Bank Limited

(Balance Sheet):
Horizontal statement displays how the dollar amount of the Jamuna
banks financial statement have changes overtime.
Fomula used in Microsoft excel: = (Data of 2017- Data of 2016)/

Data of 2016.
Particulars 2017 2017 2016 2016 2015 2015 2014
(In Millions) vs vs vs
2016 2015 2014
Cash 11483 9.77% 10461 -11.40% 11807 17.59% 10041
Bal. of other bank 11824 107.37% 5702 95.21% 2921 - 6337

and financial 53.91%
Institutions
Money at call and short notice 1040
Investment 26062 -13.46% 30114 -13.27% 34723 - 39964

13.11%
Loan and advance 142253 21.48% 117100 34.21% 87252 12.01% 77900
Fixed Assets 2510 12.46% 2232 0.18% 2228 -2.24% 2279
Other Assets 2927 4.16% 2810 -2.70% 2888 -2.92% 2975
Total Assets 197059 17.01% 168419 17.89% 142859 2.41% 139496
Borrowing 2096 -23.17% 2728 146.88% 1105 - 9360

88.19%
Deposits 167571 18.38% 141551 19.10% 118849 3.68% 114635
Other Liabilities 6958 10.60% 6291 21.05% 5197 10.83% 4689
Subordinated Debt 5000 150.00% 2000 0.00% 2000
Total Liabilities 181625 19.04% 152570 19.99% 127151 -1.19% 128684
Shareholders’ 15434 -2.62% 15849 0.90% 15708 45.28% 10812

Equity
Total Liabilities and 197059 17.01% 168419 17.89% 142859 2.41% 139496
Shareholders’
Equity
16
4.1.2 Vertical Analysis of Jamuna Bank Limited (Balance Sheet)

Vertical Analysis displays each of the variable amounts from the
financial statement as a percentages of the banks total assets.
Formula used in Microsoft Excel: =Cash of 2017/ Total assets of

2017.
Particulars 2017 2017% 2016 2016% 2015 2015% 2014 2014%
(In
Millions)
Cash 11483 5.83% 10461 6.21% 11807 8.26% 10041 7.20%
Bal. of other 11824 564.12% 5702 209.02% 2921 264.34% 6337 67.70%
bank and
financial
Institutions
26062 374.56% 30114 478.68% 34723 668.14% 39964 852.29%
Investment
142253 2845.06% 117100 5855.00% 87252 4362.60% 77900 55.84%
Loan and
advance
2510 1.38% 2232 1.46% 2228 1.75% 2279 1.77%
Fixed Assets
2927 18.96% 2810 17.73% 2888 18.39% 2975 27.52%
Other Assets
Total Assets 197059 100.00% 168419 100.00% 142859 100.00% 139496 100.00%
2096 1.06% 2728 1.62% 1105 0.77% 9360 6.71%
Borrowing
Deposits 167571 7994.80% 141551 5188.82% 118849 10755.57% 114635 1224.73%
Other 6958 4.15% 6291 4.44% 5197 4.37% 4689 4.09%
Liabilities
Subordinated 5000 71.86% 2000 31.79% 2000 38.48%
Debt
Total 181625 3632.50% 152570 7628.50% 127151 6357.55% 128684 92.25%
Liabilities
15434 8.50% 15849 10.39% 15708 12.35% 10812 8.40%
Shareholdes’
Equity
Total 197059 1276.79% 168419 1062.65% 142859 909.47% 139496 1290.20%
Liabilities
and SH
Equity
17
4.2 Performance Analysis through Ratio Analysis

A ratio analysis is a quantitative analysis of information contained in a
company's financial statements. Ratio analysis is used to evaluate various
aspects of a company's operating and financial performance such as its
efficiency, liquidity, profitability and solvency.
I. Liquidity Ratio of Jamuna Bank Limited

a. Current Ratio
The current ratio is a liquidity ratio that measures a company's ability to pay
short-term and long-term obligations. To calculate the ratio, analysts
compare current assets to current liabilities. Current assets include cash,
accounts receivable, inventory and other assets that are expected to be
turned into cash in less than a year. Current liabilities include accounts,
wages, taxes payable, and the current portion of long-term debt. The formula
for calculating a company’s.
Formula: Current Ratio = Current Assets / Current Liabilities
Year Current Ratio of Jamuna Bank 2017-2013

2017 1.13
2016 1.95
2015 0.93
2014 0.75
2013 0.83
Current Ratio of Jamuna Bank 2013-2017

2.5
2
1.5
1 1.95
0.5 1.13 0.93 0.75 0.83
0
2017 2016 2015 2014 2013
Current Ratio of Jamuna Bank 2017-2013
18
Interpretation:
A current ratio that is in line with the industry average or slightly higher is
generally considered beneficial. The current ratio of Jamuna bank of the
years 2013- 2017 shows that the banks 2016 average was very high among
these 5 years. In 2014, it was very lower, and in 2017 it has slightly decreases
from the current ratio line of 2016.
II. Profitability Ratios of Jamuna Bank Limited

a. Return on Asset: Return on assets (ROA) is an indicator of how
profitable a company is relative to its total assets. ROA gives a
manager, investor, or analyst an idea as to how efficient a company's
management is at using its assets to generate earnings. Return on
assets is displayed as a percentage and its calculated as:
The formula for calculating a Banks’s Return on Asset is as follows:
Formula: ROA = Net Income/ Average Total Assets
Return on Assets of Jamuna Bank 2013-2017
2017 1.13
2016 1.15
2015 1.16
2014 1.06
2013 1.02
Return on Assets of Jamuna Bank 2013-2017
1.2
1.15
1.1 1.16
1.13 1.15
1.05 1.06
1
2017 2016
2017 2016 2015 2014
2015 2014
19
Interpretation:
The return on Assets displays the profitability of Jamuna bank ltd. In terms
of its Total Assets. The Bar chart shows that in 2014, the ROA ratio was lower
among the 5 years and in 2015, it was higher.
b. Return on Equity: Return on equity (ROE) is a measure of financial

performance calculated by dividing net income by shareholders' equity.
Because shareholders' equity is equal to a company’s assets minus its
debt, ROE could be thought of as the return on net assets. ROE is
expressed as a percentage and can be calculated for any company if net
income and equity are both positive numbers. Net income is calculated
before dividends paid to common shareholders and after dividends to
preferred shareholders and interest to lenders.
Formula: Return on Equity = Net Income/ Total Shareholders’ Equity

Year Return on Equity of Jamuna Bank 2013-2017
2017 13.31
2016 11.38
2015 12.37
2014 13.71
2013 13.29
Return on Equity oj Jamuna Bank 2013-2017
15
10
0
2017 2016 2015 2014 2013
2017 2016 2015 2014 2013
20
Interpretation:
The Return on Equity chart shows that in 2014, the ROE was maximum
which was at 13.71% and it was gradually went down in 2016 at its lower
place. But good news is that it is growing in the 2017.
c. Net Profit Margin: Net profit margin, or net margin, is equal to net
income or profits divided by total revenue, and represents how much
profit each dollar of sales generates. Net profit margin is the ratio of
net profits or net income to revenues for a company, business segment
or product. Net profit margin is typically expressed as a percentage but
can also be represented in decimal form. The net profit margin
illustrates how much of each dollar collected by a company as revenue
translates into profit.
Formula: Net Profit Margin = Net Income/ Total Assets
Year Net Profit Margin of Jamuna Bank 2013-2017
2017 23.41
2016 21.9
2015 23.08
2014 21.55
2013 19.8
Net Profit Margin of Jamuna Bank 2013-2017
24
22
20 23.41 23.08
21.9 21.55
18 19.8
16
2017 2016 2015 2014 2013
2017 2016 2015 2014 2013
21
Interpretation:
The Net profit Margin of Jamuna Bank of the years of 2013-2017, we can see
that in 2013 the net profit margin were lower among the five years. It went
gradually up and the highest growth of net profit margin in 2017. Though it
was fallen slightly in 2016.
III. Leverage Ratios of Jamuna Bank Limited
a. Debt ratio: The debt ratio is defined as the ratio of total debt to total
assets, expressed as a decimal or percentage. It can be interpreted as
the proportion of a company’s assets that are financed by debt.
Formula: Debt Ratio: Total Debt/ Total Asset
Year Debt Ratio of Jamuna Bank 2013-2017

2017 1.06%
2016 1.16%
2015 0.77%
2014 6.69%
2013 3.18%
Debt Ratio of Jamuna Bank 2013-2017

8.00%
7.00%
6.00% 6.69%
5.00%
4.00%
3.00%
3.18%
2.00%
1.00%
1.06% 1.16% 0.77%
0.00%
2017 2016 2015 2014 2013
Debt Ratio of Jamuna Bank 2013-2017
22
Interpretation:
In 2014, the debt ratio was very high at 6.69%, what surprisingly fallen into
just 0.77% in 2015. It slightly increased in the next year. The Debt equity
ratio of 2017 was 1.06%. It displays that the Jamuna Bank Limited has more
assets in terms of its debt obligations.
b. Debt/Equity Ratio: The debt-to-equity ratio (D/E) is a financial

ratio indicating that the relative proportion of shareholders'
equity and debt used to finance a company's assets. Closely related
to leveraging, the ratio is also known as risk, gearing or leverage. The two
components are often taken from the firm's balance sheet or statement of
financial position (so-called book value), but the ratio may also be
calculated using market values for both, if the company's debt and equity
are publicly traded, or using a combination of book value for debt and
market value for equity financially.
Formula: Debt/Equity Ratio: Total Liabilities/ Total Equity
2013 2014 2015 2016 2017

Total
106,744,932,748 129,064,551,095 127,704,742,412 153,410,778,606 182,244,643,208
liabilities
Shareholders'
8,895,513,884 10,830,874,235 15,729,274,599 15,784,254,533 15,424,555,744
equity
D/E Ratio 11.99986129 11.91635581 8.11892129 9.719228633 11.81522802
Percentage 11.99% 11.91% 8.11% 9.71% 11.81%
Debt/Equity Ratio of Jamuna Bank 2013-2017

Year
2017 7.80%
2016 9.33%
2015 10.97%
2014 7.74%
2013 7.69%
23
Debt Equity ratio of Jamuna Bank 2013-2017

14.00% 11.91% 11.99%
11.81%
12.00%
9.71%
10.00% 8.11%
8.00%
6.00%
4.00%
2.00%
0.00%
2017 2016 2015 2014 2013
2017 2016 2015 2014 2013
Interpretation:
Jamuna Bank gets back its Debt to Equity ratio, as we can see there was a
heavy fall of 8.11% in 2015, and then 9.71% was in 2016. But somehow it
gets back its risk bearing position in 2017.
c. Time Interest Earned Ratio: Times interest earned (TIE) is a metric

used to measure a company's ability to meet its debt obligations. The
formula is calculated by taking a company's earnings before interest and
taxes (EBIT) and dividing it by the total interest payable on bonds and
other contractual debt. TIE indicates how many times a company can
cover its interest charges on a pre-tax earnings basis.
Time interest Earned Ratio= Income before Interest and Tax
(EBIT)/ Interest Expense
Year Time Interest Earned Ratio of Jamuna Bank 2013-2017

2017 56.85%
2016 50.81%
2015 51.00%
2014 34.72%
2013 36.75%
24
Time Interest Earned Ratio of Jamuna Bank

2013-2017
60.00% 56.85%
50.81% 51.00%
50.00%
40.00% 34.72% 36.75%
30.00%
20.00%
10.00%
0.00%
2017 2016 2015 2014 2013
2017 2016 2015 2014 2013
Interpretation:
The time interest earnings ratio shares that the bank has gradually
increase its coverage of interest expense during 2013- 2017. It started
with 36.75% TIER in 2013 and reaches to 56.85 TIER in 2017 what
displays the bank is in positive position in its interest expense.
IV. Valuation and Growth Ratios

a. Price Earnings Ratio: The price-earnings ratio (P/E ratio) is the
ratio for valuing a company that measures its current share price
relative to its per-share earnings. The price-earnings ratio is also
sometimes known as the price multiple or the earnings multiple.
Formula: P/E Ratio = Market Value per Share/ Earnings per Share.
Price Earnings Ratio Ratio of Jamuna Bank 2013-

Year
2017
2017 6.69%
2016 5.11%
2015 4.52%
2014 5.61%
2013 6.44%
25
Price Earnings Ratio of Jamuna Bank 2013 -

2017
8.00%
7.00% 6.69% 6.44%
6.00% 5.61%
5.11%
5.00% 4.52%
4.00%
3.00%
2.00%
1.00%
0.00%
2017 2016 2015 2014 2013
Price Earnings Ratio of Jamuna Bank 2013-2017
Interpretation:
P/E Ratio of Jamuna Bank of 2013 was 6.44%, it gradually falls till 2015
when it was 4.52%, but in 2016, it started to rise at 5.11% and finally in
2017, it was 6.69%. The P/E ratio shows that the valuation of jamuna bank
is positive and the share price of jamuna bank is growing.
V. Management Efficiency of Jamuna Bank Limited

a. Total Asset Turnover: The asset turnover ratio measures the value
of a company's sales or revenues relative to the value of its assets. The
asset turnover ratio can be used as an indicator of the efficiency with
which a company is using its assets to generate revenue.
Formula: Total Asset Turnover= Net Income/ Total Assets
Year Total Asset Turnover Ratio of Jamuna Bank 2013-2017

2017 1.95%
2016 1.52%
2015 1.19%
2014 1.14%
2013 0.97%
26
Total Asset Turnover Ratio of Jamuna Bank

2013-2017
2.50%
1.95%
2.00%
1.52%
1.50%
1.19% 1.14%
0.97%
1.00%
0.50%
0.00%
2017 2016 2015 2014 2013
Total Asset Turnover Ratio of Jamuna Bank 2013-2017
Interpretation:
The bank is continuously improving its interest income from each taka of its
assets from 2013-2017. It earned 0.97% of its total asset turnover and
gradually increase it to 2017, which wat at 1.95%. So, it is very clear that the
Jamuna bank’s management efficiency is continuously improving.
4.3 SWOT Analysis of Jamuna Bank Limited
27
A SWOT analysis is a model which is used to evaluate a company's

competitive position by measuring its strengths, weaknesses, opportunities
and threats. Specially, SWOT analysis is a foundational assessment
framework that measures what a company can and cannot do, and its
potential opportunities as well as threats.
The SWOT Analyisis of Jamuna Bank is given below:
I. Strength:
a. Skilled and dedicated employees
b. The upper-level management of the bank, the key strength for the
Jamuna bank has contributed strongly towards the growth and
advancement of the bank.
c. JBL has been founded by a group of famous entrepreneurs of
Bangladesh.
d. JBL is a new commercial bank in the Bangladeshi banking sector but
they build a solid image in this sector in a short time. They provide
high-quality services to their customer.
e. Diversified network throughout the country.
II. Weakness:
a. Jamuna banks weakest point is their advertising and promotion of
its products and services.
b. Higher service charge than several banks.
c. Very low practices to motivate and train employees
III. Opportunities:
a. Jamuna Bank can launch international Credit cards.
b. It can move towards Mobile banking
c. It can spread its banking business globally.
28
IV. Threats:
a. Money Laundering and political loan.
b. Political crisis
c. Fluctuations of Foreign exchange rate and devaluation on money.
29
Chapter 5.
Recommendations and Conclusions
30
Recommendations
After analysis the financial performance of Jamuna Bank, it is now clear that 2017
was a pretty successful year for Jamuna Bank Limited. All the ups and downs of
Jamuna Bank has shown using various important analysis of performance
measurement such as horizontal analysis, vertical analysis, and most importantly
ratio analysis. In this chapter, I would like to share some recommendation based
on the analysis for the betterment of Jamuna Bank Limited. The
recommendations are listed below:
a. The current ratio of Jamuna bank is decreasing in 2017, JBL should

concentrate to increase their current assets to increase their current ratio.
b. The return on assets ratio is slightly down in 2017 than 2016, it implies the
bank is depending more on debts than its income. Jamuna Bank need to
increase its fixed assets to pay off some liabilities.
c. Net Profit Margin is increasing what is good. Jamuna bank should improve
it more by reducing the operating expense and increasing the operating
income.
d. Price earnings ratio of jamuna bank shows that the bank has just get back
its position what was decreasing for last 4 years. So the bank should
maintain its current share price and per share price carefully.
e. Top level management of Jamuna Bank should implement the sustainable
IT facilities in all the bank. They should create a direct communication
channel with the head office using internet. Employee need to trained to be
trained by the bank who don’t have atleast a mnimum IT and online
knowledge.
f. Jamuna bank needs to innovate a lot more services so that it can gather a
good range of potential customers. The services need to be designed
according to the customers need.
31
Conclusion
Jamuna bank began their journey to be the most efficient financial bank in
Bangladesh and the bank beliefs that day is not much far when they can
achieve their visions. People from home or abroad can easily get financial
service from these competitive and modern banks, with this mission the
Jamuna bank is competing with a lot of government banks, private
commercial banks and also with some multinational banks in Bangladesh.
To accomplish these goals, Jamuna Bank had to face various financial trouble
in last few years. Some of these troubles were providing excessive loans,
shortage of loans, providing bad loans, limited cash reserve and so on. All
these troubles occurred because of the inefficient management, political
crisis, economic slow-down, interest rate fluctuation, inflation of money
market etc. However, the analysis shows that the bank is solving the
problems and get back to a positive position in 2017. If Janmuna bank can
continues their performance in this way, the success of their mission is not
far. I would love end here by wishing them Good Luck.
32
Reference
Horne, V. J. C., &Wachowicz, J. M. (2017). Financial statement analysis, 11th edition.
Pandey, I. M. (2016). “Financial statement analysis,” 9th edition. New Delhi, India.
Chowdhury, T. A., & Ahmed, K. (2009). Performance Evaluation of Selected Commercial
Banks in Bangladesh. International Journal of Business and Management, 86-97.
Qamruzzaman, M. (2016). Analysis of Performance and Financial soundness of financial.
Research Journal of Finance and Accounting, 169-186.
Chowdhury, A. (2012). Politics, Society and Financial Sector Reform in Bangladesh,
International Journal of Social Economies, vol. 4, pp. 963 – 988.
Siddique,S.H.; and Islam,A.F.M.M.(2011). Banking Sector in Bangladesh: Its Contribution
and Performance Journal of Business Research Jahangirnagar University, vol. 3, pp.
16-33.
Uppal,R.K.(2010). Stability in Bank Income through Free-Based Activities Journal of
Information Management and Business Review, vol. 1, pp. 1-8.
http://lankabd.com/dse/stock-market/JAMUNABANK/jamuna-banklimited/financial-
statements?companyId=25&stockId=25
http://lankabd.com/dse/stock-market/BANKASIA/bank-asia-
limited/financialstatements?companyId=14&stockId=14
https://www.investopedia.com/exam-guide/cfa-level-1/financialratios/default.asp
33

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Intern Report of SK Mahmuda Rahman

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An Internship report of

A Comparative financial analysis of

Submission Date: 5th January 2018

Subject: Submission of Internship report on ‘A Comparative Financial

Your obedient Student,

SK. Mahmuda Rahman

II. Declaration of student

III. Letter of authorization

At first, I would like to thank my internship supervisor Suzona Asad,

I also like to show my gratitude to Fazlul Quader Md. Bashet, First

Thank You All…

I have performed various duties as an intern as well as gathered information

I tried to provide an in-depth analysis of financial analysis of jamuna bank

VI. Table of Contents

Chapter 2: Literature Review

Chapter 4: Results Findings and Analysis

Chapter 5: Conclusion and Recommendations

JBL – Jamuna Bank Limited

1.1 Background of the study

I got an opportunity to work in Jamuna Bank Limited. My honourable

1.2 Objectives of the Study

a. General objective: This report is primarily created to achieve my BBA

1.3 Significance of the study

1.4 Scope of the report

1.5 Limitations of the report

The limitations are listed below:

1. Due to secrecy and market competition banks official requested me

2.1 Profile of Jamuna Bank Limited

Jamuna Bank Limited (JBL) is a Banking Company enlisted under the

2.1.1 The vision of Jamuna Bank Limited

2.1.2 The Mission of Jamuna Bank Limited

2.1.3 The Values of Jamuna Bank Limited

Integrity Teamwork Quality Committment

Business Unique Respectable

Chart 2: Values of Jamuna Bank

2.1.4 The Goals of Jamuna Bank Limited

k. To seek after a successful arrangement of management by guaranteeing

2.1.5 Organizational Structure

Chairman Vice President Chief Advisor

Executive Senior Executive Vice president

Senior Assistant Vice President

Assistant vice President

Junior Assistant Vice President

Senior Executive Officer

First executive officer

2.1.6 Products and services provide by Jamuna Bank Limited

Collection of Depositors Services related to

Investment Financing Islamic

Personal loan Hire

Chart 3: Services provide by Jamuna Bank

2.2 Review of other relevant studies

In 2008, Pandey suggested that the most effortless approach to evaluating

James brought up that financial ratios utilized by bankers, accountants,

In 2010, Van Horne and Wachowicz Jr stated that to evaluate a company's

According to Uppal (2013), with this expansion of rivalry in the banking

Evaluation of a bank's execution after a series of time, causes them to realize

3.1 Description and Collection of Data

b. Secondary Data: The secondary information are collected not only

3.2 Period of the Study: The study is conducting in November 2018.

a. Design: To find out the report objectives in chapter 1, an exploratory

II. Analysed the financial statements of each annual report

3.4 Analysis Techniques and Tools:

4.1 Performance Analysis through Horizontal and