Internship Report on Financial Performance Analysis of National Bank Limited PDF

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Primeasia University a mission with a vision Internship Report On "Financial Performance Analysis of National Bank Limited” (2015 - 2019) An internship report presented to the School of Business of Primeasia University. In partial fulfillment of the requirement for the Degree of Bachelor of Bus...

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Primeasia University a mission with a vision Internship Report On "Financial Performance Analysis of National Bank Limited” (2015 - 2019) An internship report presented to the School of Business of Primeasia University. In partial fulfillment of the requirement for the Degree of Bachelor of Business Administration.

Supervised By: Mst. Afroja Aktar Assistant Professor School Of Business Primeasia University

Submitted By: Md. Ashaduzzaman Milon ID - 162-025-045 Department of Business Administration Primeasia University Date of Submission: Monday 1st March 2021

Primeasia University a mission with a vision Internship Report On "Financial Performance Analysis of National Bank Limited” (2015 - 2019) An internship report presented to the School of Business of Primeasia University. In partial fulfillment of the requirement for the Degree of Bachelor of Business Administration.

Supervised By: Mst. Afroja Aktar Assistant Professor School Of Business Primeasia University

Submitted By: Md. Ashaduzzaman Milon ID - 162-025-045 Department of Business Administration Primeasia University

Date of Submission: Monday 1st March 2021

Internship Report On "Financial Performance Analysis Of National Bank Limited” (2015 - 2019)

Letter of of Transmittal Transmittal Letter 01/03/2021 To Mst. Afroja Aktar Assistant Professor School of Business Primeasia University 17, Banani C/A, Dhaka- 1213, Bangladesh. Subject: Submission of internship report Dear Ma’am, Assalamualaikum… It is indeed a great honor to be able to hand over my internship report on "Financial Performance Analysis of National Bank Limited” (An overview of National Bank Limited)". I have successfully completed my internship program in National Bank Limited at Imamganj Branch, Moulvi Bazar, Dhaka - 1100. I worked there as an intern for three months. Working on this report was a great learning experience for me as I got to learn the differences between practical and theoretical work. I have attempted my best to finish the report with the essential data and recommended proposition in a significant compact and comprehensive manner as possible. The information and data used in this report are mainly based on secondary resources like annual reports and some research reports previously done by various authors. While working on this report, I have gained much knowledge about the bank's current state as well as the importance of Financial Performance in a firm. I trust that this report will meet the desires. I would like to take this opportunity to thank you for all the support and guidelines that you have provided, which I hope to continue getting in the future. Thank You Ma’am Sincerely yours,

______________________ Md. Ashaduzzaman Milon ID: 162-025-045 Department of Business Administration School Of Business Primeasia University Dhaka, Bangladesh

©2021, Primeasia University

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Letter of Endorsements by the Supervisor This is to certify that the internship report on "Financial Performance Analysis of National Bank Limited” in Bangladesh.” as a requirement of Bachelor of Business Administration (BBA Program) major in Accounting, from Primeasia University carried out by Md. Ashaduzzaman Milon, student ID: 162-025-045. I have studied the report and believe that it meets the standard of BBA internship report. He has completed the report as per instructions under my supervision. I wish his all the best in his future endeavors.

_________________ Mst. Afroja Aktar Assistant Professor School of Business Primeasia University Dhaka, Bangladesh

©2021, Primeasia University

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Student Declaration

I, Md. Ashaduzzaman Milon. My student ID: 162-025-045 hereby declare that the work presented report of internship titled "Financial Performance Analysis of National Bank Limited” work in National Bank Limited, at Imamganj Branch, Moulvi Bazar, Dhaka-1100. under the supervision of Mst. Afroja Aktar, Assistant Professor, School of Business, Primeasia University, Banani, Dhaka-1213, Bangladesh.

I also confirm that is my original work and due acknowledgements have been made to materials used in the report.

_______________________ Md. Ashaduzzaman Milon ID: 162-025-045 Department of Business Administration School Of Business Primeasia University Dhaka, Bangladesh.

©2021, Primeasia University

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Acknowledgement It is a great opportunity for me to write about the “Financial Performance Analysis of National Bank Limited”. At the time of preparing this report, I have gone through different research papers and books which helped me understand the topic more effectively. Firstly, this is an exclusive instance of professional life I passed and enjoyed in the time of my internship, which helped me to prepare this report. At first I would like to unlimited thanks to the Almighty Allah. And my parents and others members of my family who helped me to reach at this stage of life. Then I would like to express my sincere gratitude and cordial thanks to some specific persons who helped me to organize this report and for their kind opinion, suggestions, instructions, support and appropriate guidelines for this. Then, I acknowledge with gratitude to my respectable supervisor Mst. Afroja Aktar, Assistant Professor, School of Business, Primeasia University, who has always been sincere and helpful towards me achieving the completion of this report. She also helped me to understand the need a “Financial Performance Analysis” in a firm in Bangladesh and where it lacks. Without her immense knowledge and advice, it would not have been possible for me to complete this report. I am thankful to her for her continuous support throughout this internship period. I would also like to express my heartfelt gratitude to Md. Sabir Ahmed, VP & Manager, for his advice and knowledgeable thoughts. Under the supervision of Md. Golam Sarwar Qureshi, Senior Assistant Vice President (Second Manager) of Imamganj Branch, National Bank Limited. Who provided me the supreme support for preparing the report as my supervisor at host organization. I would also like to take this opportunity to thanks Mr. Subal Chandro Roy, Senior Assistant Vice President & all officers and stuffs of Imamganj Branch, National Bank Limited for lending their helping hands whenever necessary. Without their valuable advice and guidance my internship program would not be so propitious. I could learn how they manage and deal with 213 branches of National Bank Limited throughout the country. I am extremely thankful to them for their immense support and guidance. I would also like to express my heartiest thanks to my uncle Md. Rabiul Hoque, Officer General of Imamganj Branch, National Bank Limited. Without his valuable advice and guidance my internship program would not be so propitious. Finally, I would also like to thanks to the authority of School of Business, Primeasia University for their kind co-operation. Thank you all from the core of my heart. And again I’m so much appreciative to almighty Allah.

©2021, Primeasia University

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Executive Summary The Internship report is prepared as requirement of BBA program of Primeasia University. This report is on “Financial Performance Analysis of National Bank Limited”. This report is intended to assist the reader in detailed understanding the financial performance of a Bank in the Bangladesh. The purpose of this report is to have an idea about the “Financial Performance of Bank in the Bangladesh. This internship report was prepared on the basis of financial performance from 2015 to 2019 of National Bank Limited. National Bank started its journey on 23rd March of 1983 Recognized as the first private sector bank entirely owned by native entrepreneurs, NBL has been booming as the prime private sector bank after encountering much pressure. The study is based on annual report of 2015-2019 year by using the updated data about their business era. First chapter is the introduction chapter. I discussed the Background of the study, Statement of the problems, Scope, Objectives, Research questions, Hypothesis and Significance of the study. The main objective of the report is to know the Financial Performance Analysis of National Bank Limited In chapter second, is about the company overview and details information about National Bank Limited. It covers the mission, vision, culture, core values and activities of the company. In chapter three, literature review & methodology of the study is discussed very elaborately and details such as the methods used in data collection, sources of data (primary or secondary), in this chapter I discussed the concept of Financial Performance Analysis. In chapter four about is Analysis and interpretation of the data. Data analysis and evaluation which is discussed and shown through chart specifically. In this chapter I discussed the Financial Performance analysis, which is I collect from annual report of National Bank Limited Finally, in this chapter I explained about the Findings of study, Contribution & recommendation, Limitation of the study, Conclusion, References: Appendix (Examples, calculations, tables) Data analysis and evaluation which is explained and shown through chart specifically.

©2021, Primeasia University

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Table of Content

Prefatory Part Content Letter of Transmittal Letter of Endorsements by the Supervisor Student Declaration Acknowledgement Executive Summary Table of Content List of Tables List of Tables

Page No: i ii iii iv v vi vii viii

Chapter: One Introduction to the Report Sl. No: 1.1 1.2 1.3 1.4 1.5 1.6 1.7

Content Background of the study Statement of the problems Scope of the study Objectives of the study Research questions of the study Hypothesis of the study Significance of the study

Page No: 2 2 3 3 4 5 5

Chapter: Two Profile of the organization Sl. No: 2.1 2.2 2.3 2.4 2.5 2.6 2.7

Content Organization overview Of National Bank Limited History & Heritage of NBL Profile of National Bank Limited Corporate Information Status of the Bank Principal activities Mission

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Page No: 7 7 10 11 12 12 12

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2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22

Vision Motto of the Bank Objectives of the Bank Core Values General Banking of NBL Products and Account Services Corporate Strategies of NBL Green Banking Offshore Banking Unit Shareholders’ Equity Assets Awards & Recognitions Management Structure of NBL Organizational Structure of NBL Branch Internship experience & learning

12 12 13 13 14 15 18 19 20 20 20 20 21 22 23

Chapter: Three Review of related literature Sl. No: 3.1 3.2 3.3 3.3.1 3.3.2

Content 3.1. Definition Financial Analysis Review of Related Literature Methodology of the study Primary Sources of Data Secondary Sources of Data

Page No: 25 25 27 27 27

Chapter: Four Analysis and interpretation of the data Sl. No: 4.0 4.1 4.1.1 4.2 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 4.3

Content Analysis and Interpretation of the Data Leverage Position Debt to Equity Ratio (Leverage ratio) Liquidity Ratio Current Ratio Net assets value per share Percentage of Non-performing loan Advance Deposit Ratio (ADR) Yield on Loans and Advances Profitability Ratio

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Page No: 29 30 30 31 - 35 31 32 33 34 35 36 - 40

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4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 4.4 4.4.1 4.5 4.5.1

Price Earnings Ratio Return on Assets (ROA) Return on Equity (ROE) Earnings Per Share (EPS) Net Profit Margin Ratio Activity (Efficiency) Ratio Cost Income Ratio Adequacy Ratio Capital Adequacy Ratio

36 37 38 39 40 41 41 42 42

Chapter: Five Findings, Recommendation, Conclusion Sl. No: 5.1 5.2 5.3 5.4 5.5 5.6

Content Findings of study Contribution & Recommendation Limitation of the study Conclusion References Appendix

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Page No: 44 46 47 48 49 51 - 59

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Chapter - 1 Introduction to the Report

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1.1. Background of the study The internship program is an essential part of to obtain a Bachelor of Business Administration (BBA) from Primeasia University. Each student must meet the required credit hours, then they are placed for observing a specific situation in a real workplace and to guide him to prepare their internship report, an honourable supervisor always guides the students to prepare their report well. I feel myself lucky that I got an opportunity to work in a renowned firm, National Bank Limited as an intern. While working inside the bank, I decided to prepare my internship report on the “Financial Performance Analysis of National Bank Limited”.

Banking scheme has transformed and nowadays banks are obligated to contest in the market with native associations as well as overseas ones. Surviving in such a competitive banking atmosphere, two vital necessities are enhancement of suitable monetary infrastructure by the Central bank and Enhancement of proficiency such that of emerging a proper workforce construction and its proficiency and experience. The fact that it is vital for the bank to have Enhanced management and a well-trained workforce in the vigorous international market is inevitable. Bangladesh is not an exception of this trend. Banking in Bangladesh is meeting complications from many ways via its prospect is upbeat in the long run.

1.2. Statement of the problems Analyzing financial performance is the process of evaluating the common parts of financial statements to obtain a better understanding of firm’s position and performance. Financial performance analysis enables the investors and creditors evaluate past and current performance and financial position, and to predict future performance. Financial statement is used to judge the profitability and financial soundness of a firm. In this study, an attempt is made to identify the financial strength and weakness of the firm by properly establishing relationship between the items in the balance sheet and profit and loss account of National Bank Limited.

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1.3. Scope of the study I have tried to evaluate the financial performance of National Bank Limited. The evaluation is based on last five years (2015-2019) financial performance of the bank. The report contains the analysis of bank’s Capital adequacy, Asset quality, Management efficiency, Earnings ability and Liquidity. I have also compared its performance on last five years from 2015 to 2019.  Information availability.  Good communication system.  Have a wide area of gaining knowledge.  Good working environment.

1.4. Objectives of the study This paper has been arranged via broad conversations with personnel of the bank and with the clienteles. The objectives of the study are as follows:  To give an overall view of National Bank Limited.  To evaluate the performance of National Bank Limited.  To compare the bank’s financial performance on last five years.  To suggest remedial measures for the development of National Bank Limited.

 To classify the pattern of the several categories of loan schemes.  Loan features and Advance systems of some loan schemes with introduction of some new schemes with special elements.  To appraise the contribution of Scheme deposits in overall collection of loan.  Critically examine the utilities & the processes of each level of the organization of the National Bank Ltd.

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1.5. Research questions of the study Financial performance refers to the achievement of financial objectives and is an important aspect of financial performance. It is the process of monetary measurement of the results of a company's policies and operations. It is used to measure the overall financial health of the business over a given period and can also be used to compare similar businesses in the same sector or to compare industries or sectors. Try to answer important questions such as:  What is the financial position of the National Bank Limited?  What is the financial performance of the National Bank Limited over a given period?  What is the financial performance of last five years of the National Bank Limited?  Compare of financial performance on last five years (2015-2019) of the National Bank Limited?

These queries can be solved using a financial analysis of a company. Financial analysis involves the use of financial statements. A financial statement is a collection of data organized according to logical and consistent accounting procedures. Its purpose is to understand certain financial aspects of a commercial enterprise. It is possible to visualize a position during a given period, as in the case of a balance sheet, or to reveal a series of activities for a certain period, as in the case of an income statement. As a result, the term "balance sheet" generally refers to two fundamentals: the balance sheet and the income statement. The financial balance sheet indicates the financial condition (condition) of the company at a given time. Provides a snapshot that can be considered a static image. "The financial statements are a summary of a company's financial position at a given date, showing total assets = total liabilities + owner's capital". The income reflects the performance of the company over a given period. "The income statement is a summary of the income and expenses of the business in a given period, which ends with the net profit or loss of the period." Anyways, financial statements do not reveal all the information about a company's financial transactions, but they provide extremely useful information that highlights two important factors: profitability and financial strength.

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1.6. Hypothesis of the study Bangladesh is one of the underdeveloped country in the world. Her socio-economic development hinges upon rural development, 85% of its total population being dispersed in 88,000 villages and about 50% living below the poverty line. The literacy rate in the republic is very minimal; thereby the expertise of the workforce is also near to the ground. So entrepreneurship is vital for Bangladesh and also important for productive investment, which in return contributes to capital formation. It is a strategy element between productive investment and capital formation. Government of Bangladesh the Central Bank have commenced several loan agendas for the progress of small-scale industries. National Bank Limited provides loan to those countryside folks who are socially, economically and governmentally diffident and in desperate need of having credit and who normally linger outside the circle of the customary Banking systems. The current analysis has been undertaken with a scenario to general events of National Bank Limited particularly in “General Banking Events and loan and advance of National Bank Limited.”

1.7. Significance of the study The significance of this report is so much because it’s a first real world experience of a student for future reference. It will include the analysis of Bangladesh Banking Industry, Financial performance analysis of National Bank Limited and my personal internship experience. It will also include some recommendations for National Bank Limited and some for my selfimprovement. Again, through this report I want to see my own performance what I have knowledgeable and to present that in my report. This report has another significance that to have a great knowledge through study during preparation of the report. As a whole, this report is very important. Another thing is by the help of this report the ...