CHAPTER ONE

INTRODUCTION

1. Introduction Banking represents one of the largest and most influential activities of any developed economy due to the strong linkages virtually existing with any part of the economic system. Recent developments in retail banking such as the enlargement of services supplied have often been depicted as technologically driven phenomena. The banks play an important role in the economy of the country. The contribution of banking sector to the GDP of Bangladesh is very impressive. In the FY 2011-2012 contribution of banking sector to the GDP was around13.00%. However, this is not so a good sign for the overall economy of Bangladesh but also compare to the whole world this is very satisfactory outcomes for the Bangladesh economy as the banking sector in rest of the world was collapsed in the meantime. Therefore, without any question we can say that the banking sector of the Bangladesh is a progressive economic sector in our country. According to the data of Bangladesh bank, there are 57 different banks in Bangladesh. Among them, total number of State-owned bank is 04, specialized bank 05, private bank 31, Islamic bank 08, foreign bank 09. As a result the commercial bank plays an important role to develop the economy of a country like other financial institutions. Brac Bank Limited, Islami Bank Limited, IFIC BankLimited, Trust Bank Limited, AB Bank Limited, City Bank Limited, One Bank Limited, EXIM-Bank Limited, Dutch-Bangla Bank Limited, Bank Asia Limited are the private commercial banks in Bangladesh which operates their banking activities with a limited liability. The Project report has been prepared on the basis of the ratio analysis of these ten private commercial banks based on their last five years data since 2008 till 2012.1.1 Origin of the study

The report is the requirement of the course Bus 498 (Project) of BBA program of East West University, for which my honorable instructor Sarahat Salma Chowdhutyassigned me to do a research paper on the topic Ratio Analysis of Ten Leading Private Commercial Banks of Bangladesh. For an appraisal of ratio analysis, I have selected the Annual Report from 2008 to 2012 of ten leading commercial banks of Bangladesh, those are : Brac Bank Limited, Islami Bank Limited, IFIC BankLimited, Trust Bank Limited, AB Bank Limited, City Bank Limited, One Bank Limited, EXIM-Bank Limited, Dutch-Bangla Bank Limited, Bank Asia Limited.

1.2 Objectives of the report There are mainly two objectives behind the preparation of this report such as primary objectives and secondary objectives. These are discussed as under: The Primary Objective: The primary objective of preparing this report is to fulfill the partial requirements of the BBA program and to represent the Ratio Analysis of Ten Leading Private Commercial Banks of Bangladesh.

Secondary Objective:There are some objectives to prepare this report. These are defined s follows- To present an overview of the selected private commercial banks in Bangladesh To evaluate the performance of the banks on the basis of ratio analysis To present the recommendation to the development of the selected private commercial banks1.3 Methodology:

While I was conducting the study I have collected various types of data. Data has been collected from different sources.Data collection: Most of the data are collected from the secondary sources to prepare the report.

Secondary Sources: I have conducted different types of secondary data for the research work. Secondary sources of information can be defined as follows

Selected Banks Annual Reports since 2008 till 2012

Website of the selected banks

Quantitative Analysis: Quantitative analysis like ratio analysis is done to evaluate the performance of the selected banks. In case of quantitative analysis informations are taken from the financial reports of the selected banks.1.4 Limitation of the studyIn the research work all data are collected from the secondary sources and after then organize them to attain an optimal outcome of the research. Moreover there are some limitations acts as a barrier to conduct the research. Insuffiency of proper data

Only secondary data are used to evaluate the performance of the selected banks

To complete the research only depend on official information and annual reports

Lack of proper information

.

CHAPTER TWOCHAPTER 2- AN OVERVIEW OF TEN SELECTED PRIVATE COMMERCIAL BANKS IN BANGLADESH

2.1 OVERVIEW OF AB BANK LIMITED (ABBL):AB Bank Limited is the pioneer in commercial banking under private ownership in Bangladesh. It started functioning as Arab Bangladesh Bank Ltd. on 12 April, 1982. To be the trendsetter for innovative banking with excellence and perfection was pronounced as the banks vision. Side by side it spoke out about its mission, To be the best performing bank in the country.Since inception AB Bank Limited has spread over the country through 82 branches at all economically potential locations. ABBL has established a foreign branch in Mumbai, India and a subsidiary finance company in Hongkong.AB Bank Limited provides all commercial banking services like Current and Savings accounts, fund transfer, and utility bills receiving. In addition it presents a good number of deposit and credit schemes for the clients. All its services may be classified as follows: Retail Banking Corporate Banking SME Banking NRB Banking Islami Banking2.1.1 Objectives of the ABBL:Maximization of profit along with the benefits of employees is the main objective of the bank. In addition, the order objectives are: Bringing modern Banking facility to the doorstep of general public through diversification of banking services, thereby arousing saving propensity among the people. Foreign a cordial, deep-rooted and firm banker-customer relationship by dispensing prompt and improved clients service. Taking part in the development if the national economy through productive deployment of the Banks resources as well as patronizing different social activities. Connecting clients to modern banking practice by the best application of improved information technology, so that they get encouraged to continue and feel proud of banking with ABBL. Ensuring highest use of the professional workforce through enhancement of their aptitude and competency. Responding to the need of the time by participating in syndicated large loan financing with likeminded Banks of the country, thereby expanding the area of investment of the Bank. Elevating the image of the Bank at home and abroad by sustained expansion of its activities.Ensuring maintenance of capital adequacy, comfortable liquidity, asset quality and highest through successful implementation of the management core risk program2.1.2 Vision and Mission of ABBL: Vision Statement"To be the trendsetter for innovative banking with excellence & perfection"

Mission Statement"To be the best performing bank in the country"

2.2 OVERVIEW OF BRAC BANK LIMITED (BBL)BRAC Bank is the last organization to have received a commercial banking license from Bangladesh Bank, making it the youngest private commercial bank in Bangladesh. Its headquarters are based in the capital Dhaka. The bank is partially owned by BRAC, the largest non-government organization in the world, International Finance Corporation, the private sector arm of The World Bank Group and ShoreCap International.Though BRAC Bank was formed with the aim to serve the millions of small and medium enterprises (SMEs) in the country, having pioneered the concept of SME financing in Bangladesh, it is the fourth largest SME bank globally. The company also provides services within corporate and institutional banking, retail banking, as well as probashi banking, which specifically caters to non-resident Bangladeshis abroad. Other areas include customized treasury and foreign exchange solutions, and custody services. It ranks amongst the top banks nationally that processes remittances from abroad.2.2.1 Corporate Vision and Mission of BBL Corporate Vision Building profitable and socially responsible financial institution focused on Market and Business with Growth potential, thereby assisting BRAC and stakeholders to build a just, enlightened, healthy democratic and poverty free Bangladesh. Corporate Mission Sustained growth in Small & Medium Enterprise sector

Continuous low-cost deposit Growth with controlled growth in retail assets.

Corporate Assets to be funded through self-liability mobilization. Growth in Assets through syndications and investment in faster growing sectors.

Continuous endeavor to increase non-funded income

Keep our debt charges at 2% to maintain a steady profitable growth

Achieve efficient synergies between the banks branches, SME unit offices and BRAC field offices for delivery of remittance and Banks other products and services

Manage various lines of business in a full controlled environment with no compromise on service quality

Keep a divers, far flung team fully controlled environment with no compromise on service quality

Keep a diverse, far flung team fully motivated and driven towards materializing the banks vision into reality

Keep a diverse, far flung team fully motivated and driven towards materializing the banks vision into reality

2.3 OVERVIEW OF DUTCH-BANGLA BANK LIMITED (BBBL)Dutch-f Bank started operation is Bangladesh's first joint venture bank. The bank was an effort by local shareholders spearheaded by M Sahabuddin Ahmed (founder chairman) and the Dutch company FMO.From the onset, the focus of the bank has been financing high-growth manufacturing industries in Bangladesh. The rationale being that the manufacturing sector exports Bangladeshi products worldwide. Thereby financing and concentrating on this sector allows Bangladesh to achieve the desired growth. DBBL's other focus is Corporate Social Responsiblity (CSR). Even though CSR is now a cliche, DBBL is the pioneer in this sector and termed the contribution simply as 'social responsiblity'. Due to its investment in this sector, DBBL has become one of the largest donors and the largest bank donor in Bangladesh. The bank has won numerous international awards because of its unique approach as a socially conscious bank.DBBL was the first bank in Bangladesh to be fully automated. The Electronic-Banking Division was established in 2002 to undertake rapid automation and bring modern banking services into this field. Full automation was completed in 2003 and hereby introduced plastic money to the Bangladeshi masses. DBBL also operates the nation's largest ATM fleet and in the process drastically cut consumer costs and fees by 80%. Moreover, DBBL choosing the low profitability route for this sector has surprised many critics. DBBL had pursued the mass automation in Banking as a CSR activity and never intended profitability from this sector. As a result it now provides unrivaled banking technology offerings to all its customers. Because of this mindset, most local banks have joined DBBL's banking infrastructure instead of pursuing their own.Even with a history of hefty technological investments and an even larger donations, consumer and investor confidence has never waned. Dutch-Bangla Bank stock set the record for the highest share price in the Dhaka Stock Exchange in 2008.2.3.1 Core Objectives of DBBLDutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking. Taking cue from its pool esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and epitomizes its vaunted marquees "Your Trusted Partner"2.3.2 Corporate Vision and Mission of DBBL VisionDutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBL's essence and ethos rest on a cosmos of creativity and the marvel-magic of a charmed life that abounds with spirit of life and adventures that contributes towards human development.

MissionDutch-Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's operation; because "man does not live by bread and butter alone"

2.4 OVERVIEW OF EXIM BANK LIMITED:Export Import Bank of Bangladesh Limited was established in the year 1999. EXIM Bank contributes to the socio-economic development of our country. The Bank starts functioning from 3rd August, 1999 with its name as Bengal Export Import Bank Limited. On 16th November 1999, it was renamed as Export Import Bank of Bangladesh Limited.Organizational culture is considered as an essential component of business corporations as it has the ability to bind organizational members together. The culture and values of our bank have been proved as a source of competitive advantage for EXIM Bank and are acting as a key component to establish the relationship between the bank and the employees and , in turn , between their employees and their customers. EXIM Bank has also been able to improve organizational performance via improving the performance of individual contributors and also recognizes existing talents to fill up the higher vacancies within the organization or place them in the right position, wherein the best use of their abilities can be ensured. Their culture promotes sharing of common goal which ensures harmonious relationship in the working environment.2.4.1 Objectives of EXIM Bank:The main objectives of the EXIM Bank are- Maintain a good relationship with the customers

Try to protect the environment and go green financing

Maintain a good communication with the customer

Gives more priority in customer services

Maintain all laws and rules of the government

2.4.2 Vision and Mission:

Vision:

The gist of EXIM Banks vision is Together towards Tomorrow. Export Import Bank of Bangladesh Limited believes in togetherness with its customers, in its march on the road to growth and progress with service. To achieve the desired goal, there will be pursuit of excellence at all stages with climate of continuous improvement, because, in Exim Bank, they believe, the line of excellence is never ending. Banks strategic plans and networking will strengthen its competitive edge over others in rapidly changing competitive environment. Its personalized quality services to the customers with trend of constant improvement will be the cornerstone to achieve their operational success.

Mission: The Banks mission gives emphasis to:

Provide quality financial services especially in Foreign Trade

Continue a contemporary technology based professional banking environment

Maintain corporate & business ethics and transparency at all levels

Sound Capital Base

Ensure sustainable growth and establish full value to the honorable stakeholders

Fulfill its social commitments and

Above all, to add positive contribution to the national economy

2.5 OVERVIEW OF ISLAMI BANK BANGLADESH LIMITED(IBBL):Islami Bank Bangladesh Limited is a Joint Venture Public Limited Company engaged in commercial banking business based on Islamic Shari'ah with 63.09% foreign shareholding having largest branch network ( total 286 Branches) among the private sector Banks in Bangladesh. It was established on the 13th March 1983 as the first Islamic Bank in the South East Asia.It is listed with Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. Authorized Capital of the Bank is Tk. 20,000.00 Million and Paid-up Capital is Tk. 14,636.28 Million having 33,686 shareholders as on 31st December 2013.

2.4.2 Vision and Mission:VisionOur vision is to always strive to achieve superior financial performance, be considered a leading Islamic Bank by reputation and performance. Our goal is to establish and maintain the modern banking techniques, to ensure soundness and development of the financial system based on Islamic principles and to become the strong and efficient organization with highly motivated professional, working for the benefit of people, based upon accountability, transparency and integrity in order to ensure stability of financial systems. We will try to encourage savings in the form of direct investment. We will also try to encourage investment particularly in projects which are more likely to lead to higher employment. MissionTo establish Islamic Banking through the introduction of a welfare oriented banking system and also ensure equity and justice in the field of all economic activities, achieve balanced growth and equitable development in through diversified investment operations particularly in the priority sectors and less developed areas of the country. To encourage socio-economic upliftment and financial services to the loss-income community particularly in the rural areas.

2.6 OVERVIEW OF ONE BANK LIMITED(OBL)ONE Bank Limited was incorporated in May, 1999 with the Registrar of Joint Stock Companies under the Companies Act 1994, as a commercial bank in the private sector. Now the bank has almost 60 branches in all over Bangladesh. The bank is pledge-bound to serve the customers and the community with utmost dedication. The prime focus is on efficiency, transparency, precision and motivation with the spirit and conviction to excel as ONE Bank in both value and image. The name ONE Bank is derived from the insight and long nourished feelings of the promoters to reach out to the people of all walks of life and progress together towards prosperity in a spirit of oneness.

2.6.1 Objectives of ONE Bank limited

Be one of the best banks of Bangladesh. Achieves excellence in customer services next to none and superior to all competitors. Cater to all differentiated of Retail and Wholesale customers. Be a high quality distributor of products and services. Use state-of-the-art technology in all spheres of banking2.6.2 Vision and Mission:Vision: To establish ONE Bank Limited as a role Model in the Banking Sector of Bangladesh. To meet needs of our Customers, provide fulfillment for our people and create shareholder Value. Mission:

To constantly seek to better serve our Customers. Be pro-active in fulfilling our Social Responsibilities. To review all business lines regularly and develop the Best Practices in the industry.

2.7 OVERVIEW OF TRUST BANK LIMITED

Trust Bank Limited is one of the leading private commercial banks having a spread network of 62 branches and 7 SME center across Bangladesh and plans to open few more branches to cover the important commercial areas in Dhaka, Chittagong, Sylhet and other areas in 2012. The bank, sponsored by the Army Welfare Trust (AWT), is first of its kind in the country. With a wide range of modern corporate and consumer financial products Trust Bank has been operating in Bangladesh since 1999 and has achieved public confidence as a sound and stable bank in 2001, the bank introduced automated branch banking system to increase efficiency and improve customer service. In the year 2005, the bank moved one step further and introduced ATM services for its customers. Since banks business volume increased over the years and the demands of the customers enlarged in manifold, our technology has been upgraded to manage the growth of the bank and meet the demands of our customers. In January 2007, Trust Bank successfully launched Online Banking Services which facilitate Any Branch Banking, ATM Banking, Phone Banking, SMS Banking, & Internet Banking to all customers.Online Services and Visa Electron (Debit Card), ATMs now allow customers to retrieve 24x7 hours Account information such as account balance checkup through mini-statements and cash withdrawals. Trust Bank has successfully introduced Visa Credit Cards to serve its existing and potential valued customers.Trust Bank is a customer oriented financial institution. It remains dedicated to meet up with the ever growing expectations of the customer because at Trust Bank, customer is always at the center. 2.7.1 Vision and Mission:Vision:We aim to provide financial services to meet customer expectations so that customers feel we are always there when they need us, and can refer us to their friends with confidence. We want to be a preferred bank of choice with a distinctive identity.Mission:Our mission is to make banking easy for our customers by implementing one-stop service concept and provide innovative and attractive products & services through our technology and qualified human resources. We always look out to benefit the local community through supporting entrepreneurship, social responsibility and economic development of the country.

2.8 OVERVIEW OF BANK ASIA LIMIED:Bank Asia has been launched by a group of successful entrepreneurs with recognized standing in the society. The management of the Bank consists of a team led by senior bankers with decades of experience in national and international markets. The senior management team is ably supported by a group of professionals many of whom have exposure in the international market.It set milestone by acquiring the business operations of the Bank of Nova Scotia in Dhaka, first in the banking history of Bangladesh. It again repeated the performance by acquiring the Bangladesh operations of Muslim Commercial Bank Ltd. (MCB), a Pakistani bank.In the year 2003 the Bank again came to the limelight with oversubscription of the Initial Public Offering of the shares of the Bank, which was a record (55 times) in our capital market's history.The asset and liability growth has been remarkable. Bank Asia has been actively participating in the local money market as well as foreign currency market without exposing the Bank to vulnerable positions. The Bank's investment in Treasury Bills and other securities went up noticeably opening up opportunities for enhancing income in the context of a regime of gradual interest rate decline.Bank Asia Limited started its service with a vision to serve people with modern and innovative banking products and services at affordable charge. Being parallel to the cutting edge technology the Bank is offering online banking with added delivery channels like ATM, Tele-banking, SMS and Net Banking. And as part of the bank's commitment to provide all modern and value added banking service in keeping with the very best standard in a globalize world.

2.8.1 Objectives of Bank Asia: The objectives of Bank Asia are- Place customer interest and satisfaction as first priority and provide customized banking products and services

Value addition to the stakeholders through attaining excellence in banking operations

Maintain high ethical standard and transparency in dealings

Be a compliant institution through adhering to all regulatory requirements

Contribute significantly for the betterment of the society

Ensure higher degree of motivation and dignified working environment for our human capital and respect optimal work-life balance

Committed to protect the environment and go green

2.8.2 Vision and Mission:

Bank Asia is a third generation public limited commercial bank. It received the Certificate of Incorporation on September 28, 1999 and came to operation on November 27, 1999. The Mission and vision of Bank Asia is-

Vision: Bank Asia's vision is to have a poverty free Bangladesh in course of a generation in the new millennium, reflecting the national dream. The vision is to build a society where human dignity and human rights receive the highest consideration along with reduction of poverty.

Mission:

To assist in bringing high quality service to the customers and to participate in the growth and expansion of the national economy

To set high standards of integrity and bring total satisfaction to the clients, shareholders and employees To become the most sought after bank in the country, rendering technology driven innovative services by the dedicated team of professionals

2.9 OVERVIEW OF CITY BANK LIMIED:City Bank is one of the oldest private Commercial Banks operating in Bangladesh. It is a top bank among the oldest five Commercial Banks in the country that started their operations in 1983. The Bank started its journey on 27th March 1983 through opening its first branch at B. B. Avenue Branch in the capital, Dhaka city. It was the visionary entrepreneurship of around 13 local businessmen who braved the immense uncertainties and risks with courage and zeal that made the establishment & forward march of the bank possible. Those sponsor directors commenced the journey with only Taka 3.4 crore worth of Capital, which now is a respectable Taka 330.77 crore as capital & reserve.City Bank is among the very few local banks which do not follow the traditional, decentralized, geographically managed, branch based business or profit model. Instead the bank manages its business and operation vertically from the head office through 4 distinct business divisions namely1. Corporate & Investment Banking2. Retail Banking (including Cards)3. SME Banking &4. Treasury & Market Risks.Under a real-time online banking platform, these 4 business divisions are supported at the back by a robust service delivery or operations setup and also a smart IT Backbone. Such centralized business segment based business & operating model ensure specialized treatment and services to the banks different customer segments. The bank currently has 87 online branches spread across the length & breadth of the country that include a full fledged Islamic Banking branch. Besides these traditional delivery points, the bank is also very active in the alternative delivery area. It currently has 43 ATMs of its own; and ATM sharing arrangement with a partner bankthat has more then 500 ATMs in place; SMS Banking; CustomerCallCenter is going to start operation. The bank has a plan to end the current year with 50 own ATMs.City Bank is the first bank in Bangladesh to have issued Dual Currency Credit Card. The bank is a principal member of VISA international and it issues both Local Currency (Taka) & Foreign Currency (US Dollar) card limits in a single plastic. VISA Debit Card is another popular product which the bank is pushing hard in order to ease out the queues at the branch created by its astounding base of some 400,000 retail customers. The launch of VISA Prepaid Card for the travel sector is currently underway.2.9.1 Vision and Mission: Vision:To be the leading bank in the country with best practices and highest social commitment Brand payoff line: Making Sense of MoneyMission: To contribute to the socioeconomic development of the country. To attain highest level of customer satisfaction through extension of services by dedicated and motivated team of professionals. To maintain continuous growth of market share ensuring quality. To maximize banks profit by ensuring its steady growth. To ensure participative management system and empowerment of HR. To maintain the high moral and ethical standard. To nurture an enabling environment where innovativeness and performance is rewarded.2.10 OVERVIEW OF IFIC BANK LIMIED:

The international finance investment and commerce bank limited (IFIC bank) is a banking company incorporated in Bangladesh with a limited liability. It was set up at the instance of the government in 1976 as a joint venture between the government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint ventures banks/financial institutions abroad. The government held 49% shares and the rest 51% were held by the sponsors and general public. In 1983 when the government allowed banks in the private sector, the IFIC was converted into a full fledged commercial bank. The government of Bangladesh now holds 32.75% of share capital of the bank. The rest of the share capital is held by some leading industrialists of the country having vast experience in the field of trade and commerce and by general public.All types of commercial banking services are provided by the bank within the stipulations laid down by the bank company act, 1991 along with the directives issued by the Bangladesh bank. The number of branches of the bank within the country stood at 97 at the end of 2010 including 6 SME branches and 2 SME service centres. The bank is listed with the Dhaka and Chittagong stock exchange limited and traded in the bourses as an A category scrip.2.10.1 Vision and Mission:Vision:We want to be the leader among banks in Bangladesh and make our indelible mark as an active partner in regional banking operating beyond the national boundary. Mission:The mission of IFIC bank is to provide services to the clients with the help of skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make their position unique in giving quality service to all institutions and individuals that they care for.They are committed to the welfare and economic prosperity of the people and the community, for they derive from them their inspiration and drive for onward progress to prosperity.They want to be leader among the banks of Bangladesh and make their indelible mark as an active partner in regional banking operating beyond the national boundary.In an intensely competitive and complex financial and business environment, they particularly focuses on growth and profitability of all concerned.

CHAPTER THREE

Ratio Analysis

RATIO ANALYSISRatio Analysis is a tool which is used as a way of analyzing the performance of any company or organization. It is one of the most important techniques of financial analysis in which quantities are converted into ratios for meaningful comparisons with past ratios and ratios of other firms in the same or different industries. Ratio analysis determines trends and exposes strengths or weaknesses of a firm.TYPES OF FINANCIAL RATIOSRatio analysis is done to compare or evaluate the performance over the years. This analysis mainly deals with some fields those are liquidity ratio, leverage ratio, profitability ratio, and efficiency ratio and so on. These ratios are used to measure the short-term solvency of an organization. These ratios show the ability of the organization to convert quickly its assets into cash to pay its different types of short-term debts. The higher the ratios the company is more liquid and the lower the ratios, the less liquid the company is which may experience the company financial distress to pay its short-term debt.3.1 LIQUIDITY RATIOSThese ratios are used to measure the short-term solvency of an organization. These ratios show the ability of the organization to convert quickly its assets into cash to pay its different types of short-term debts. The higher the ratios the company is more liquid and the lower the ratios, the less liquid the company is which may experience the company financial distress to pay its short-term debt.3.1.1 CURRENT RATIOThe ratio is considered to observe the liquidity status of an organization. This ratio is obtained by dividing the total current assets of a company by its total current liabilities. It expresses the working capital relationship of current assets available to meet the company's current obligations. Formula for calculating current ratio:Current Ratio = Total Current Assets/ Total Current LiabilitiesNoBanks Name20082009201020112012

1AB Bank Limited1.02101.06611.10741.05101.0460

2BRAC Bank Limited1.05731.05541.04340.98160.9094

3DBBL1.33280.75791.00070.98981.0045

4Exim bank1.03741.06441.10111.13941.1264

5Islami Bank Bangladesh Limited1.05011.06161.05631.05751.0568

6ONE Bank Limited1.03431.06111.04901.05681.0523

7Trust Bank Limited1.09431.04261.01801.04531.0488

8Bank Asia1.04361.05701.00291.03281.0362

9City Bank1.01420.99651.06671.08811.1151

10IFIC Bank1.02961.19691.01581.03671.0213

These ratios give an idea of the Banks ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under standard 1 suggests that the Bank would be unable to pay off its obligations if they came due at that point.

If we go through time series analysis we get:

AB Bank Limited shows current ratio more than 1in between 2008-2012. It had a better position in 2010 that was 1.1074 and slightly poor position in 2008 which was 1.0210 but maintained an average position in 2009,2011,2012 which was respectively 1.10661,1.0510 and 1.0460.So if we look the current ratio of AB bank we can said that they have enough current asset to meet its obligation.BRAC Bank Limited shows current ratio more than 1 in between 2008-2010 and less than 1 in 2011 & 2012. It had a better position in 2008 that was 1.0573 and poor position in 2012 which was 0.9094DBBL shows current ratio more than 1 in between 2008, 2010, 2012 and less than 1 in 2011 & 2009. It had a better position in 2008 that was 1.3328 and poor position in 2009 and 2011 which was respectively 0.7579 and 0.9878.So in 2009 and 2011 we saw that DBBL does not not have enough current asset to pay out all of its current liability.Exim bank shows current ratio more than 1in between 2008-2012. It had a better position in 2011 that was 1.1394 and slightly poor position in 2008 which was 1.0374.Islami Bank Bangladesh Limited shows current ratio more than 1in between 2008-2012. It had maintained a continuous position between the years. So this bank is capable to pay out all its current liabilities through its current assets.ONE Bank Limited shows current ratio more than 1 in between 2008-2012. It had a better position in 2009 that was 1.0611and slightly poor position in 2008 which was 1.0343.So through this 5 years we saw that one bank has enough current asset to pay out its obligation.Trust Bank Limited shows current ratio more than 1 in between 2008-2012. It had a better position in 2012 that was 1.0488 and slightly poor position in 2010 which was 1.0180.So if we consider the current ratio trust bank limited has maintained a constant position.Bank Asia shows current ratio more than 1 in between 2008-2012. It had a better position in 2009 that was 1.0570 and slightly poor position in 2010 which was1.0029.So the current ratio indicates Bank asia has enough current assets to fuifill the obligations.City Bank shows current ratio more than 1in between 2008-2010 except 2009. It had a better position in 2011 that was 1.0881 and poor position in 2009 which was 0.9965.IFIC Bank shows current ratio more than 1 in between 2008-2012. It had a better position in 2009 which was 1.1969 and slightly poor position in 2012 which was 1.0213.If we go through cross Sectional analysis we get: In 2008 all the banks have ratio more then 1. So it is clear all that the banks are in good financial health in 2008. But DBBL shows the height current ratio that is 1.3328 while City Bank shows the lowest current ratio of 1.0142 So it can say that DBBL is in a better position than all other banks and more capable to pay its obligations. On the other hand, City Bank is in slightly down position than all other banks and not much capable to pay its obligations compare with other banks.

In 2009 all the banks have not ratio more then 1. So it is clear that the DBBL & City Bank are not in good financial health in 2009 (less than 1). But IFIC Bank shows the height current ratio that is 1.1969 while DBBL shows the lowest current ratio of 0.7579 So it can say that IFIC Bank is in a better position than all other banks and more capable to pay its obligations. On the other hand, DBBL is not in a good position than all other banks and not capable to pay its obligations compare with other banks. In 2010 all the banks have ratio more then 1. So it is clear that the banks are in good financial health in 2010. But AB Bank Limited shows the height current ratio that is 1.1074 while DBBL shows the lowest current ratio of 1.0007 So it can say that AB Bank Limited is in a better position than all other banks and more capable to pay its obligations. On the other hand, DBBL is in slightly down position than all other banks and not much capable to pay its obligations compare with other banks. In 2011 all the banks have not ratio more then 1. So it is clear that the DBBL & BRAC Bank Limited were not in good financial health in 2011 (less than 1). But Exim bank shows the height current ratio that is 1.1394 while BRAC Bank Limited shows the lowest current ratio of 0.9816 So it can say that Exim bank is more capable to pay its obligations. On the other hand, BRAC Bank Limited is not in a good position than all other banks and not capable to pay its obligations compare with other banks. In 2012 all the banks have not ratio more then 1. So it is clear that the BRAC Bank Limited is not in good financial health in 2011 (less than 1). But Exim bank shows the height current ratio that is 1.1264 while BRAC Bank Limited shows the lowest current ratio of 0.9094 So it can say that Exim bank is more capable to pay its obligations. On the other hand, BRAC Bank Limited again is not in a good position than all other banks and not capable to pay its obligations compare with other banks.3.1.2 QUICK RATIOThe ratio is also considered to observe the liquidity status of an organization. This ratio is obtained by dividing the total quick assets of a company by its total current liabilities. This is an important ratio because sometimes a company may have heavy inventory as part of its current assets which might be obsolete or slow moving. For that reason eliminating those inventories from current assets is doing to measure this ratio. The ratio is regarded as an acid test ratio. It expresses the true working capital relationship which includes accounts receivables, prepaid and notes receivables available to meet with the company's current obligations.The formula: Quick Ratio = Total Quick Assets/ Total Current LiabilitiesNoBanks Name20082009201020112012

1AB Bank Limited0.86720.88560.96820.88240.8691

2BRAC Bank Limited0.92990.92480.92220.86620.7632

3DBBL1.16240.68650.88150.89290.9087

4Exim bank0.18540.16880.17370.24870.3174

5Islami Bank Bangladesh Limited0.20810.22060.19070.20410.2088

6ONE Bank Limited0.90720.89740.90940.92270.9252

7Trust Bank Limited0.94960.86950.85590.90410.8903

8Bank Asia0.91690.90000.86770.87940.8328

9City Bank0.83520.84440.90380.91940.9186

10IFIC Bank0.90591.01530.86480.89060.8738

Banks with ratiosof less than 1 cannot pay their current liabilities and should be looked at with extreme caution. Furthermore, if the acid-test ratio is much lower than the working capital ratio, it means current assets are highly dependent on inventory.If we go through cross Sectional analysis we get:

Between 2008-2012, most of the time all the banks show ratios less than 1. Which means Banks cannot pay their current liabilities and should be looked at with extreme caution. Except in 2008 DBBL shows a ratio of 1.1624 that means in that DBBL was able to pay their current liabilities efficiently.Again in the graph Exim bank and Islami Bank Bangladesh Limited shows very poor ratios in those years. It indicates that these banks cannot pay their current liabilities efficiently through its current assets.

If we go through time series analysis we get: AB Bank Limited shows a constant quick ratio less than 1 around 0.85 in between 2008-2012. So it can say that This Bank had a constant position over the periods.BRAC Bank Limited shows quick ratio less than 1 in between 2008-2012. It had a better position in 2008 that was 0.93 and poor position in 2012 which was 0.76.DBBL shows quick ratio less than 1 in between 2009-2012. It had a better position in 2008 that was 1.16 which was more then 1 and poor position in 2009 which was 0.6865 compare with other years.

Exim bank shows very poor quick ratio less than 1 in between 2008-2012. It had a better position in 2012 that was 0.3174 and poor position in 2009 which was 0.1688 compare with other years.Islami Bank Bangladesh Limited shows a constant poor quick ratio less than 1 around 0.20 in between 2008-2012. So it can say that this Bank had a constant poor position over the periods.ONE Bank Limited shows a constant quick ratio less than 1 around 0.90 in between 2008-2012. So it can say that This Bank had a constant position over the periods.Trust Bank Limited shows quick ratio less than 1 in between 2008-2012. It had a better position in 2008 that was 0.9496 and slightly poor position in 2010 which was 0.8559 compare with other years.Bank Asia shows quick ratio less than 1 in between 2008-2012. It had a better position in 2008 that was 0.9169 and slightly poor position in 2012 which shows ratio of 0.8328 compare with other years.City Bank shows quick ratio less than 1 in between 2008-2012. It had a better position in 2011 and 2012 and poor position in 2008 which was 0.83 compare with other years.IFIC Bank shows quick ratio less than 1 in between 2008-2012 except 2009. It had a better position in 2009 which was 1.0153, more then 1 and poor position in 2010 which was 0.8648

3.2. LEVERAGE RATIOSLeverage Ratios are used to measure the extent of the company's financing with debt relative to equity and its ability to cover interest and other fixed charges. These ratios address the company's long-term ability to meet its financial leverage. The higher the ratios the more indebtedness the company owes. This higher results signal the possibility the company will be unable to earn enough to satisfy its debt obligations.3.2.1 LONG-TERM DEBT TO EQUITY RATIOIn the risk analysis this ratio is a way to determine a company's leverage. The ratio is calculated by taking the company's long-term debt and dividing it by the total value of its preferred and common stock. The company who has higher ratio is thought to be more risky because it has more liabilities and less equity.The formula:Long-term Debt to Equity Ratio = Long-term Debt / Equity

NoBanks Name20082009201020112012

1AB Bank Limited0.480.611.020.690.64

2BRAC Bank Limited0.41930.30060.39310.42820.7451

3DBBL0.140.790.210.160.44

4Exim bank0.100.00020.130.240.26

5IBBL0.210.150.130.110.08

6ONE Bank Limited0.080.210.040.100.02

7Trust Bank Limited0.360.040.090.420.44

8Bank Asia0.480.440.730.100.29

9City Bank0.520.170.240.130.30

10IFIC Bank0.060.300.000.210.13

If a lot ofdebt isused to finance increasedoperations (high debt to equity or more then 1), the bank could potentially generate more earningsthan it would have without thisoutside financing. If this were to increase earnings by a greater amount than the debt cost (interest), then the shareholders benefit asmoreearnings are being spread among the same amount of shareholders. However, high ratio (1 or more) means bank has more long term liabilities and less equity. This can lead to bankruptcy, which would leave shareholders with nothing.If we go through time series analysis we get: AB Bank Limited had a poor position in 2010 that was 1.02 means their long term liability was more than equity and a better position in 2008 which was 0.48 compare with other years.

BRAC Bank Limited had a poor position in 2012 that was 0.75 but their long term liability was less than equity and a better position in 2009 which was 0.30 compare with other years.DBBL had a poor position in 2008 that was 0.79 but their long term liability was less than equity and a better position in 2009 which was 0.14 means their long term liability was less than equity compare with other years.Exim bank had a poor position in 2008 that was 0.21 but their long term liability was less than equity and a better position in 2012 which was 0.08 means their long term liability was very low than equity compare with other years.Islami Bank Bangladesh Limited had a poor position in 2012 that was 0.26 but their long term liability was less than equity and a better position in 2009 which was 0.002 means their long term liability was very low than equity compare with other years.ONE Bank Limited had a poor position in 2009 that was 0.21 but their long term liability was less than equity and a better position in 2012 which was 0.02 means their long term liability was very low than equity compare with other years.Trust Bank Limited had a poor position in 2011 that was 0.42 but their long term liability was less than equity and a better position in 2010 which was 0.09 means their long term liability was very low than equity compare with other years.Bank Asia had a poor position in 2010 that was 0.73 but their long term liability was less than equity and a better position in 2011 which was 0.10 means their long term liability was very low than equity compare with other years.City Bank had a poor position in 2008 that was 0.52 but their long term liability was less than equity and a better position in 2011 which was 0.13 means their long term liability was very low than equity compare with other years.IFIC Bank had a poor position in 2009 and a very better position in 2010 and their long term liability was always very low than equity comparing with other years.If we go through cross Sectional analysis we get:

Between 2008-2012, all the banks show ratios less than 1. Which means Banks have less long term liabilities then equity. This indicates a better position. Moreover in 2009 AB Bank Limited shows almost equal ratio which indicate equal long term debt and equity. After that AB Bank Limited shows a high ratio of 1.02 in 2010 this can lead to bankruptcy, which would leave shareholders with nothing.However in 2012, BRAC Bank Limited, IFIC Bank in 2010 and in 2009 Exim bank shows almost equal long term liability and equity. From the graph it is clear that ONE Bank Limited, Islami Bank Bangladesh Limited, Exim bank shows minimum ratios over the time period. So it can say that they have a better position than other banks. 3.2.2 TOTAL DEBT TO EQUITY RATIOThis ratio is obtained by dividing the total liability or debt of a company by its total equity. The ratio measures how the company is leveraging its debt against the capital employed by its owners. If the liabilities exceed the net worth then in that case the creditors have more stake than the shareholders.The formula: Total Debt to Equity Ratio = Total Debt / Shareholders EquityNoBanks Name20082009201020112012

1AB Bank Limited11.50339.59958.56929.29879.8422

2BRAC Bank Limited12.322610.603711.659512.871316.1033

3DBBL13.202724.380113.389412.740013.3585

4Exim bank12.718911.40538.06397.96669.0383

5Islami Bank Bangladesh Limited15.420412.842113.070912.999611.1376

6ONE Bank Limited12.713013.718011.07509.655010.3942

7Trust Bank Limited11.352213.436410.596512.790213.6265

8Bank Asia15.013212.859713.90078.43439.7596

9City Bank12.542412.03956.89125.48176.2481

10IFIC Bank13.289712.214111.101512.865615.5993

High Total Debt to Equity ratio indicate bank has more liabilities and less equity. This can lead to bankruptcy, which would leave shareholders with nothing. So minimum ratio is better for the Banks.If we go through time series analysis we get:

AB Bank Limited showed that the dependency on external fund had gradually decreased from 2008 to 2010, from 11.5033units to 8.5692 units. But AB Bank Limited has increased its dependency again on external funding over the last two years up to 9.8422 unit. BRAC Bank Limited showed that the dependency on external fund had increased in 2008 &20011 to 2012. Meanwhile AB Bank Limited has decreased its dependency 2009 but again it increased in 2010.DBBL showed that the dependency on external fund ratio was quite simeller in 2008 and 2010 to 2012. But DBBL has dramatically increased its dependency 2009 that can lead Bank Exim bank showed that the dependency on external fund had gradually decreased from 2008 to 2011, from 12.7189 units to 7.9666 units. But Exim bank has increased its dependency again on external funding over the last one year up to 9.0383unit. Islami Bank showed that the dependency on external fund ratio was quite simeller in 2009 and 2011. But Islami Bank has increased its dependency in 2010 nd maximum in 2008, although a little decreased in 2012.ONE Bank Limited showed that the dependency on external fund had fluctuated over the five years. The maximum rate was 13.7180 in 2009 and minimum was 10.3942 in 2011.If we look at Trust Bank Limited that also showed the dependency on external fund had fluctuated over the five years. The maximum rate was 10.5965 in 2012 and minimum was 10.5965 in 2010.Again we look at Bank Asia that also showed the dependency on external fund had fluctuated over the five years. The maximum rate was 15.0132 in 2008 and minimum was 8.4343in 2011.Again we look at City Bank that also showed the dependency on external fund had fluctuated over the five years. The maximum rate was 12.5424 in 2008 and minimum was 5.4817 in 2011.City Bank had a poor position in 2008 that was 0.52 but their long term liability was less than equity and a better position in 2011 which was 0.13 means their long term liability was very low than equity compare with other years.IFIC Bank showed that the dependency on external fund had gradually decreased from 2008 to 2010, from 13.2897 to 11.1015 units. But IFIC Bank has increased its dependency again on external funding over the last two years up to 12.8656 from15.5993 unit. When we go through cross Sectional analysis we get:

Between 2008-2012, all the banks show very high ratios. Which means Banks have more liabilities (Short term & long term) then equity. This indicates a very poor position. Moreover in 2008 Trust Bank Limited shows a ratio of 11.35 which indicate high total debt then equity but it was the minimum compare to other banks. Again Islami Bank Bangladesh Limited shows a high value 15.42 in 2008.In 2009 AB Bank Limited shows a ratio of 9.5995which was the minimum compare to other banks. Again DBBL shows a very high value 24.38 in 2008.Again in 2010 City Bank again shows a ratio the minimum ratio 6.8912compare to other banks. Again Bank Asia shows a very high value 13.9 in 2010.In 2011 City Bank shows a ratio the minimum ratio 5.48compare with the other banks. Again Islami Bank Bangladesh Limited shows a very high value almost 13 in 2011.In 2012 City Bank shows a ratio the minimum ratio 6.25 compare to other banks. Again BRAC Bank Limited shows a very high value 16.10 in 2012.

3.2.3 TOTAL DEBT TO TOTAL ASSET RATIOThe debt to total assets ratio is an indicator of financial leverage. It tells the percentage of total assets that were financed by its total debt. The debt to total assets ratio is calculated by dividing a companys total liabilities by its total assets. The lower the result of this ratio the better off the company is.The formula: Total Debt to Total Asset Ratio = Total Debt / Total Asset

NoBanks Name20082009201020112012

1AB Bank Limited0.92000.90570.89550.90290.9078

2BRAC Bank Limited0.92490.91380.92100.92790.9415

3DBBL0.947820.94660.93050.92720.9304

4Exim bank0.92710.91940.88970.88850.9004

5IBBL0.93910.92780.92890.92860.9176

6ONE Bank Limited0.92710.93210.91720.90610.9122

7Trust Bank Limited0.91900.93070.91380.92750.9316

8Bank Asia0.93760.92780.93290.89400.9071

9City Bank0.92620.92330.87330.84570.8620

10IFIC Bank0.93000.81500.91740.92790.9398

High Total Debt to Asset ratio indicates bank has more liabilities and fewer assets. This can lead to bankruptcy, which would leave shareholders with nothing. So minimum ratio is better for the Banks. It is always less than 1.If we go through time series analysis we get:

In between 2008 to 2012 AB Bank Limited shows every high ratios near to 1 that means total debt close to total assets. It indicates the poor situation for the bank. In between 2008 to 2012 BRAC Bank Limited shows every high ratios near to 1 that means total debt close to total assets. It indicates the poor situation for the bank.In between 2008 to 2012 DBBL shows every high ratios near to 1 that means total debt close to total assets. It indicates the poor situation for the bank.Exim bank shows very high ratios In between 2008, 2009 & 2012 which are near to 1 that means total debt close to total assets. It indicates the poor situation for the bank. But in 2010 & 2011 the ratios comparatively previous mentioned years which indicates more assets then total Debt.In between 2008 to 2012 IBBL shows every high ratios near to 1 that means total debt close to total assets. It indicates the poor situation for the bank. In between 2008 to 2012 ONE Bank Limited shows every high ratios near to 1 that means total debt close to total assets. It indicates the poor situation for the bank. In between 2008 to 2012 Trust Bank Limited shows every high ratios near to 1 that means total debt close to total assets. It indicates the poor situation for the bank.In between 2008 to 2012 Bank Asiaust Limited shows every high ratios near to 1 that means total debt close to total assets. It indicates the poor situation for the bank.City Bank shows very high ratios In between 2008 TO 2009 & which are near to 1 that means total debt close to total assets. It indicates the poor situation for the bank. But in 2010 to 2012 the ratios comparatively less previous mentioned years which indicates more assets then total Debt. Bank is in slightly better position comparing to other years.IFIC Bank shows very high ratios In between 2008, 2010, 2011 & 2012 which are near to 1 that means total debt close to total assets. It indicates the poor situation for the bank. But in 2009 the ratios comparatively less previous mentioned years which indicate more assets then total Debt. It indicates the Bank is in slightly better position comparing to other year.If we go through cross Sectional analysis we get:

Between 2008-2012, all the banks show very high ratios near to 1. It indicates Banks have more liabilities (Short term & long term) which were closes to total assets. This indicates a very poor position of the banks. In 2008 DBBL shows a ratio of which are near to 1 that means total debt close to total assets. It indicate poor situation for the banks. Moreover, in 2009 DBBL again shows a ratio of which is near to 1 that means total debt close to total assets. In 2010 IBBL Bank Asia and DBBL show a ratio of which are closest to 1 that means total debt close to total assets. In 2011 IBBL and IFIC Bank show a ratio of which are closest to 1 that means total debt close to total assets. In 2012 IFIC Bank Asia and BRAC Bank Limited show a ratio of 0.9398 and 0.9415 respectively but City Bank shows ratios of 0.8620 indicates more assets then total Debt.

3.2.4 TOTAL EQUITY TO TOTAL ASSET RATIOTotal Equity to Total Asset ratio used to help to determine how much shareholders would receive in the event of companywide liquidation. The ratio is expressed as a percentage which is calculated by dividing total equity by total assets of the company. It represents the amount of assets on which shareholders have a residual claim.The formula:Total Equity to Total Asset Ratio = Total Equity / Total AssetNoBanks Name20082009201020112012

1AB Bank Limited8.00%9.43%10.45%9.71%9.22%

2BRAC Bank Limited7.51%8.62%7.90%7.21%5.85%

3DBBL5.34%5.22%6.95%7.28%6.96%

4Exim bank7.29%8.06%11.03%11.15%9.96%

5Islami Bank Bangladesh Limited6.09%7.22%7.11%7.14%8.24%

6ONE Bank Limited7.29%6.79%8.28%9.39%8.78%

7Trust Bank Limited8.10%6.93%8.62%7.25%6.84%

8Bank Asia6.24%7.22%6.71%10.60%9.29%

9City Bank7.38%7.67%12.67%15.43%13.80%

10IFIC Bank7.00%6.67%8.26%7.21%6.02%

If we go through time series analysis we get:

In between 2008 to 2012 AB Bank Limited shows a maximum ratio of 10.45% in 2010 it indicate that shareholders claim 10.45% on total assets. On the other hand AB Bank Limited also shows only 8.00% ratio in 2008. So in this case shareholder residual claim only 8.00%.In between 2008 to 2012 DBBL shows a maximum ratio of 7.28% in 2009 it indicate that shareholders claim 7.28% on total assets. On the other hand DBBL also shows only 5.22%ratio in 2011. So in this case shareholder residual claim only 5.22%In between 2008 to 2012 Exim bank shows a maximum ratio of 11.15% in 2011 it indicate that shareholders claim 11.15% on total assets. On the other hand Exim bank also shows only 7.29%ratio in 2008. So in this case shareholders residual claim only 7.29%.In between 2008 to 2012 Islami Bank Bangladesh Limited shows a maximum ratio of 8.24% in 2012 it indicates that shareholders claim 8.24% on total assets. On the other hand Islami Bank Bangladesh Limited also shows only 6.09% ratio in 2008. So in this case shareholder residual claim only 6.09% In between 2008 to 2012 ONE Bank Limited shows a maximum ratio of 9.39% in 2011 it indicate that shareholders claim 9.39% on total assets. On the other hand ONE Bank Limited also shows only 6.79% ratio in 2009. So in this case shareholder residual claim only 6.79%In between 2008 to 2012 Trust Bank Limited shows a maximum ratio of 8.10%in 2008 it indicate that shareholders claim 9.39% on total assets. On the other hand Trust Bank Limitedalso shows only 8.10% ratio in 2012. So in this case shareholder residual claim only 6.84%In between 2008 to 2012 Bank Asia shows a maximum ratio of 10.60% in 2011 it indicate that shareholders claim 10.60% on total assets. On the other hand Bank Asia also shows only 6.24% ratio in 2008. So in this case shareholder residual claim only 6.24%In between 2008 to 2012 City Bank shows a maximum ratio of 15.43%in 2011 it indicate that shareholders claim 15.43%on total assets. On the other hand City Bank also shows only 7.38%ratio in 2008. So in this case shareholder residual claim only 7.38%If we go through cross Sectional analysis we get:

In 2008 Trust Bank Limited shows a maximum ratio of 8.10% it indicate that shareholders claim 8.10% on total assets. On the other hand DBBL shows only 5.34%ratio. So in this case shareholder residual claim only 5.34%In 2009 AB Bank Limited shows a maximum ratio of 9.43% it indicate that shareholders residual claim 9.43% on total assets. On the other hand DBBL shows only 5.22% ratio. So in this case shareholders residual claim only 5.22% on total assets.In 2010 Exim bank shows a maximum ratio of 11.03% it indicate that shareholders residual claim 11.03%on total assets. On the other hand Bank Asia shows only 6.71% ratio. So in this case shareholders residual claim only 6.71% on total assets.In 2011 City Bank 15.43%shows a maximum ratio of 11.03% it indicate that shareholders residual claim 11.03% on total assets. On the other hand Islami Bank Bangladesh Limited shows only 7.14% ratio. So in this case shareholders residual claim only 7.14% on total assets.In 2012 City Bank shows a maximum ratio of 13.80%it indicate that shareholders residual claim 13.80%on total assets. On the other hand BRAC Bank Limited shows only 5.85% ratio. So in this case shareholders residual claim only 5.85% on total assets.

3.3 PROFITABILITY RATIOS

Profitability Ratios measure the overall earnings performance of a company and its efficiency in utilizing assets, liabilities and equity.3.3.1 NET PROFIT MARGINThe Profit Margin of a company determines its ability to survive in competition and adverse conditions like rising costs, falling prices or declining sales in the future. The ratio measures the percentage of profits earned per taka of sales or net interest income. Thus this ratio is a measure of efficiency of a company.The formula:Net Profit Margin = Net Profit after Taxation / Net interest Income

NoBanks Name20082009201020112012

1AB Bank Limited113.09%115.63%106.16%55.47%46.07%

2BRAC Bank Limited30.84%42.07%32.87%31.26%8.29%

3DBBL45.20%55.05%53.75%43.44%33.05%

4Exim bank62.03%76.86%96.93%53.37%43.17%

5IBBL36.24%41.04%43.36%35.55%31.03%

6ONE Bank Limited62.42%70.24%101.34%73.96%38.34%

7Trust Bank Limited39.50%66.81%86.56%69.60%14.16%

8Bank Asia55.64%75.86%65.17%70.95%24.68%

9City Bank26.43%39.54%51.75%45.69%15.99%

10IFIC Bank56.24%81.61%79.35%36.64%13.83%

If we go through time series analysis we get:

In 2009 AB Bank Limited showed a maximum ratio of 115.63% comparing to other Years ,it indicates that 115.63% of profits earned per taka of sales or net interest income. But in 2008 & 2010 ratio was 113.09% & 106.16% which were also better and quite similar to 2009 and oppositely in 2011 AB Bank Limited net profit margin was better than the year 2012. On the other hand in 2011 and 2008 the net profit ratio was 55.47% and 38. 46.07%.In 2009 BRAC Bank Limited showed a maximum ratio of 42.07% comparing to other Years, it indicates that 42.07% of profits earned per taka of sales or net interest income. But in 2008, 2010 & 2011 ratio was 30.84%, 32.87% & 31.26% which were also better and consistent performance and oppositely in 2008 BRAC Bank Limited net profit margin ratio was 8.29% it indicates that only 8.29% of profits earned per taka of sales or net interest income. In 2009 DBBL showed a maximum ratio of 55.05% comparing to other Years, it indicates that of profits 55.05% earned per taka of sales or net interest income. But in 2010 ratio was 53.75% which was also better and quite similar to 2009 and oppositely in 2008 and 2011 DBBL net profit margin was better than the year 2012. On the other hand in 2008,2011 and 2012 the net profit ratio was 45.20%,43.44% and 33.05%.In 2009 Exim showed a maximum ratio of 96.93% comparing to other Years, it indicates that 96.93% of profits earned per taka of sales or net interest income. But in 2008 & 2009 ratio was 76.86% 62.03%which were also better to earn profit margin and and oppositely in 2011 Exim net profit margin was better than the year 2012. On the other hand in 2011 and 2012 the net profit ratio was 53.37%& 43.17%.In 2010 IBBL showed a maximum ratio of 43.36% comparing to other Years ,it indicates that 43.36% of profits earned per taka of sales or net interest income. But in 2008, 2009 ratio was 36.24% & 41.04% which indicted consistent in the performance consistent performance and oppositely in 2011 IBBL net profit margin was better than the year 2012. On the other hand in 2011 and 2012 the net profit ratio was 35.55% & 31.03%.ONE Bank Limited In 2010 ONE Bank Limited showed a maximum ratio of 101.34% comparing to other Years, it indicates that 101.34%of profits earned per taka of sales or net interest income. But in 2008, 2009 & 2011 ratio was 62.42%& 70.24%& 73.96% which indicted consistent in the performance and oppositely in 2012 ONE Bank Limited showed a lowest ratio 38.34%.Trust Bank Limited In 2010 Trust Bank Limited showed a maximum ratio of 86.56% comparing to other Years , it indicates that 86.56% of profits earned per taka of sales or net interest income. But in 2009 & 2011 ratio was 66.81%& 69.60%which were also better ratio of profit margin and oppositely in 2008 Trust Bank Limited net profit margin was far better than the year 2012. On the other hand in 2008 and 2008 the net profit ratio was 39.50% & 14.16%.In 2009 Bank Asia showed a maximum ratio of 75.86%comparing to other Years, it indicates that 101.34%of profits earned per taka of sales or net interest income. But in 2008, 2010 & 2011 ratio was 55.64%, 65.17% & 70.95% which indicted the better in the performance similar to 2009 and oppositely in 2012 Bank Asia showed a lowest ratio 24.68%.City Bank In 2010 City Bank showed a maximum ratio of 51.75%comparing to other Years, it indicates that 51.75%of profits earned per taka of sales or net interest income. in 2009 & 2011 ratio was 39.54% &45.69% and oppositely in 2012 City Bank showed a lowest ratio 15.99%.In 2009 IFIC Bank showed a maximum ratio of 81.61% comparing to other Years, it indicates that 81.61% of profits earned per taka of sales or net interest income. But in 2010 & ratio was 79.35% which indicted the better in the performance and quite similar to 2009 and oppositely in 20011 & 2012 IFIC Bank consistently showed a lowest ratio, the was 36.64% &13.83%.Although , 2011 IFIC Bank net profit margin was better than the year 2012.

If we go through cross Sectional analysis we get:

In 2008 AB Bank Limited shows a maximum ratio of 113.09% it indicates that 113.09% of profits earned per taka of sales or net interest income, compare to other Banks. On the other hand City Bank shows only 26.43% it indicates that only 26.43% of profits earned per taka of sales or net interest income.In 2009 AB Bank Limited continuously shows a maximum ratio of 115.63%it indicates that 115.63% of profits earned per taka of sales or net interest income, compare to other Banks. On the other hand City Bank again shows only 39.54%it indicates that only 39.54%of profits earned per taka of sales or net interest income.In 2010 AB Bank Limited always shows a maximum ratio of 106.16% it indicates that 115.63% of profits earned per taka of sales or net interest income, compare to other Banks. On the other hand BRAC Bank Limited shows only 32.87% it indicates that only 32.87% of profits earned per taka of sales or net interest income.In 2011 ONE Bank Limited shows a maximum ratio of 73.96% it indicates that 73.96% of profits earned per taka of sales or net interest income, compare to other Banks. On the other hand BRAC Bank Limited shows only 31.26% it indicates that only 31.26% of profits earned per taka of sales or net interest income.In 2012 AB Bank Limited shows a maximum ratio of 46.07% it indicates that 46.07% of profits earned per taka of sales or net interest income, compare to other Banks. On the other hand BRAC Bank Limited shows only 8.29% it indicates that only 8.29%of profits earned per taka of sales or net interest income.

3.3.2 RETURN ON EQUITY (ROE)Return on equity (ROE) is a measure of profitability ratio that calculates how many taka of profit a company generates with each taka of shareholders' equity. The Return on Equity of a company measures the ability of the management of the company to generate adequate returns for the capital invested by the owners of a company.The formula:Return on Equity = Net Profit after Taxation / Equity

NoBanks Name20082009201020112012

1AB Bank Limited0.34220.33340.26650.08940.0897

2BRAC Bank Limited0.17900.15990.17680.17730.0532

3DBBL0.18880.35960.28590.24090.2131

4Exim bank0.21980.25220.27860.13870.1297

5Islami Bank Bangladesh Limited0.19020.16930.19000.17420.1390

6ONE Bank Limited0.18230.23680.38800.22830.1422

7Trust Bank Limited0.14840.16270.25370.11150.0281

8Bank Asia0.20600.26790.27330.15360.0696

9City Bank0.09440.13960.16050.11300.0425

10IFIC Bank0.20540.21430.28650.11330.0565

If we go through time series

In 2008, AB Bank Limited showed a maximum ratio of 0.3422 which indicates that Bank generates 0.3422 taka of profit with each taka of shareholders' equity. On the other hand AB Bank Limited showed a minimum ratio of 0.0897 in 2012 which indicate that Bank generates only 0.1605taka of profit with each taka of shareholders' equity 0.0897.In 2010, BRAC Bank Limited showed a maximum ratio of 0.1790which indicates that Bank generates 0.1790 taka of profit with each taka of shareholders' equity. On the other hand BRAC Bank Limited showed a minimum ratio of 0.0532 in 2012 which indicate that Bank generates only 0.1605taka of profit with each taka of shareholders' equity .In 2009, DBBL showed a maximum ratio of 0.3596 which indicates that Bank generates 0.3596 taka of profit with each taka of shareholders' equity. On the other hand DBBL showed a minimum ratio of .1888 in 2008 which indicate that Bank generates only 0.1888 taka of profit with each taka of shareholders' equityIn 2009, Exim bank showed a maximum ratio of 0.2786 which indicates that Bank generates 0.2786 taka of profit with each taka of shareholders' equity. On the other hand Exim bank showed a minimum ratio of .1888 in 2008 which indicate that Bank generates only 0.1297 taka of profit with each taka of shareholders' equity. In 2008, Islami Bank Bangladesh Limited showed a maximum ratio of 0.1902 which indicates that Bank generates 0.1902taka of profit with each taka of shareholders' equity. On the other hand Islami Bank Bangladesh Limited showed a minimum ratio of 0.1902 in 2012 which indicate that Bank generates only 0.1902taka of profit with each taka of shareholders' equity .ONE Bank LimitedIn 2010, ONE Bank Limited showed a maximum ratio of 0.3880 which indicates that Bank generates 0.3880 taka of profit with each taka of shareholders' equity. On the other hand ONE Bank Limited showed a minimum ratio of 0.1422 in 2012 which indicate that Bank generates only .1422 taka of profit with each taka of shareholders' equity .In 2010, Trust Bank Limited showed a maximum ratio of 0.2537which indicates that Bank generates 0.2537 taka of profit with each taka of shareholders' equity. On the other Trust Bank Limited showed a minimum ratio of 0.0281 in 2012 which indicate that Bank generates only 0.0281 taka of profit with each taka of shareholders' equity.In 2010, Bank Asiashowed a maximum ratio of 00.2733which indicates that Bank generates 0.2733taka of profit with each taka of shareholders' equity. On the other Bank Asia showed a minimum ratio of 0.0696 in 2012 which indicate that Bank generates only 0.0281 taka of profit with each taka of shareholders' equity.In 2010, City Bank showed a maximum ratio of 0.1605 which indicates that Bank generates 0.1605 taka of profit with each taka of shareholders' equity. On the other City Bank showed a minimum ratio of 0.0425 in 2012 which indicate that Bank generates only 0.0425 taka of profit with each taka of shareholders' equity.In 2010, IFIC Bank showed a maximum ratio of 0.2865 which indicates that Bank generates 0.2865 taka of profit with each taka of shareholders' equity. On the other IFIC Bank showed a minimum ratio of 0.0565 in 2012 which indicate that Bank generates only 0.0565 taka of profit with each taka of shareholders' equity.If we go through cross Sectional analysis we get:

In 2008, AB Bank Limited shows a maximum ratio of 34% which indicates that Bank generates 0.34 taka of profit with each taka of shareholders' equity. On the other hand City Bank shows a minimum ratio of 0.0944 which indicates that Bank generates only 0.0944 taka of profit with each taka of shareholders' equity. In 2009, AB Bank Limited shows similar ratio of 0.34 On the other hand City Bank again shows a minimum ratio of 0.14 which indicates that Bank generates only 0.14 taka of profit with each taka of shareholders' equity. In 2010, ONE Bank Limited shows a maximum ratio of 0.3880 which indicates that Bank generates 0.3880 taka of profit with each taka of shareholders' equity. On the other hand City Bank shows a minimum ratio of 0.1605 which indicates that Bank generates only 0.1605taka of profit with each taka of shareholders' equity. In 2011, DBBL shows a maximum ratio of 0.2409 which indicates that Bank generates 0.2409 taka of profit with each taka of shareholders' equity. On the other hand AB Bank Limited shows a minimum ratio of 0.0894 which indicates that Bank generates only 0.0894 taka of profit with each taka of shareholders' equity. In 2012, DBBL again shows a maximum ratio of 0.22 which indicates that Bank generates 0.22 taka of profit with each taka of shareholders' equity. On the other hand Trust Bank Limited shows a minimum ratio of 0.0281 which indicates that Bank generates only 0.0281 taka of profit with each taka of shareholders' equity.

3.3.3 RETURN ON ASSETSThe Return on Assets of a company determines its ability to utilize the assets employed in that company efficiently and effectively to earn a good return. Return on assets measures the amount of profit that the company generates as a percentage of the value of its total assets. A company's return on assets (ROA) is calculated as the ratio of its net income in a given period to the total value of its assets.

The formula:Return on Assets = Net Profit after Taxation / Total AssetsNoBanks Name20082009201020112012

1AB Bank Limited2.74%3.15%2.79%0.87%0.83%

2BRAC Bank Limited1.34%1.38%1.40%1.28%0.31%

3DBBL1.01%1.88%1.99%1.75%1.48%

4Exim bank1.60%2.03%3.07%1.55%1.29%

5IBBL1.16%1.22%1.35%1.24%1.14%

6ONE Bank Limited1.33%1.61%3.21%2.14%1.25%

7Trust Bank Limited1.20%1.13%2.19%0.81%0.19%

8Bank Asia1.29%1.93%1.83%1.63%0.65%

9City Bank0.70%1.07%2.03%1.74%0.59%

10IFIC Bank1.44%1.43%2.37%0.82%0.34%

Here the height ratio indicates better position of the company. It also indicates height income against total assets.

If we go through time series analysis we get:

AB Bank Limited shows height ratio in 2009 that was 3.15%And a low rate in 2011 that was 0.87% and in 2012 that was 0.83%.So in 2008,2009 and 2010 the management department of AB bank utilize their real and financial resources in a better way that help them to generate better amount of returns.But AB bank failed to generate better returns in 2011 and 2012, their return on that two year is 0.87% and 0.83% respectively . So this indicates AB bank failed to utilize their financial resources and assets which leads them to earn low rate of return.BRAC Bank Limited shows a constant ratio over the years which is neat to 1.50% . DBBL shows height ratio in 2009 that was 3.15%And a low rate in 2011 that was 0.87%.Exim bank shows height ratio in 2010 that was 3.07% And a low rate in 2012 that was 1.29%Islami Bank Bangladesh Limited shows a constant ratio over the years which is neat to 1.20% ONE Bank Limited shows height ratio in 2010 that was 3.21% And a low rate in 2012 that was 1.25%Trust Bank Limited shows height ratio in 2010 that was 2.19% And a low rate in 2012 that was 0.19%Bank Asia shows height ratio in 2009 that was 1.93% And a low rate in 2012 that was 0.65%City Bank shows height ratio in 2010 that was 2.03% And a low rate in 2011 that was 0.59%IFIC Bank shows height ratio in 2010 that was 2.37% And a low rate in 2012 that was 0.34%

If we go through cross Sectional analysis we get:

In 2008, AB Bank Limited shows a maximum return on assets ratio of 2.74%which indicates that 2.74% profit Bank can generates by using its total assets. It means that Bank efficiently and effectively earn a good return. On the other hand City Bank shows a minimum return on assets ratio of 0.70% compare with the other banks. In 2009, AB Bank Limited shows a maximum return on assets ratio of 3.15%continiously which indicates that 3.15%profit Bank can generates by using its total assets. It means that Bank efficiently and effectively earn a good return. On the other hand City Bank again shows a minimum return on assets ratio of 1.07% compare with the other banks. In 2010, Exim bank shows a maximum return on assets ratio of 3.07% which indicates that 3.07% profit Bank can generates by using its total assets. It means that Bank efficiently and effectively earn a good return. On the other hand IBBL again shows a minimum return on assets ratio of 1.35% compare with the other banks. In 2011, ONE Bank Limited shows a maximum return on assets ratio of 2.14% which indicates that 2.14%profit Bank can generates by using its total assets. It means that Bank efficiently and effectively earn a good return. On the other hand Trust Bank Limited again shows a minimum return on assets ratio only 0.81%compare with the other banks. In 2012, DBBL shows a maximum return on assets ratio of 1.48% which indicates that 1.48% profit Bank can generates by using its total assets. It means that Bank efficiently and effectively earn a good return. On the other hand Trust Bank Limited again shows a minimum return on assets ratio of 0.19% compare with the other banks.

3.4 EFFICIENCY RATIOSEfficiency Ratios demonstrate how efficiently the company uses its assets and how efficiently the company manages its operations.3.4.1 TOTAL ASSETS TURNOVERAsset turnover measures a firm's efficiency at using its all assets in generating revenue and the higher the number of ratio the company is in better position. It also indicates pricing strategy as the company with low profit margins tends to have high asset turnover and those with high profit margins have low asset turnover.The formula:Total Assets Turnover = Net interest Income / Total Assets

NoBanks Name20082009201020112012

1AB Bank Limited2.42%2.72%2.62%1.57%1.80%

2BRAC Bank Limited4.36%3.28%4.25%4.09%3.75%

3DBBL2.23%3.41%3.70%4.04%4.49%

4Exim bank2.58%2.65%3.17%2.90%2.99%

5Islami Bank Bangladesh Limited3.20%2.98%3.11%3.50%3.69%

6ONE Bank Limited2.13%2.29%3.17%2.90%3.25%

7Trust Bank Limited3.04%1.69%2.53%1.16%1.35%

8Bank Asia2.31%2.55%2.81%2.29%2.62%

9City Bank2.64%2.71%3.93%3.82%3.66%

10IFIC Bank2.56%1.75%2.98%2.23%2.46%

If we go through time series analysis we get:

In 2010, AB Bank Limited shows a highest ratio of 2.72% compare with other years . This higher the number of ratio indicates that the bank is in better position than other in 2010. It also indicates that this Bank has more efficiency at using its all assets in generating revenue. On the other hand, AB Bank Limited shows a lowest ratio 1.57% in 2011 This lowest the number of ratio indicates that the bank is in poor position than compare with other years even It indicates that this Bank has less efficiency at using its all assets in generating revenue. In 2008, 2010 & 2011 BRAC Bank Limited shows quite similar and highest ratio of 4.36% , 4.25% &4.09% compare with other years . This higher the number of ratio indicates that the bank is in better position than other in 2010. It also indicates that this Bank has more efficiency at using its all assets in generating revenue. On the other hand, BRAC Bank Limited shows 3.28% & 3.75% in 2009 & 2012 which are also better ratio but slightly less then above mentioned years. In 2008 to 2012 DBBL shows that the asset turnover ratio increased respectively. This increasing tend indicates that the bank has more efficiency at using its all assets in generating revenue. In between 2008 - 2010, Exim bank shows that the asset turnover ratio increased respectively. This increasing tend indicates that the bank has more efficiency at using its all assets in generating revenue. Moreover in 2011 Exim bank fallen slightly bt the get back into 2012.In 2012, Islami Bank Bangladesh Limited shows a highest ratio of 3.69% compare with other years . This higher the number of ratio indicates that the bank is in better position than other in 3.69%. It also indicates that this Bank has more efficiency at using its all assets in generating revenue. On the other hand, Islami Bank Bangladesh Limited shows a lowest ratio 2.98% in 2011 This lowest the number of ratio indicates that the bank is in poor position than compare with other years even It indicates that this Bank has less efficiency at using its all assets in generating revenue. In 2012, ONE Bank Limited shows a highest ratio of 3.25%compare with other years . This higher the number of ratio indicates that the bank is in better position than other in 2012. It also indicates that this Bank has more efficiency at using its all assets in generating revenue. On the other hand, ONE Bank Limited shows a lowest ratio 2.13% in 2008 This lowest the number of ratio indicates that the bank is in poor position than compare with other years even It indicates that this Bank has less efficiency at using its all assets in generating revenue. In 2008, Trust Bank Limited shows a highest ratio of 3.04% compare with other years . This higher the number of ratio indicates that the bank is in better position than other in 2008. It also indicates that this Bank has more efficiency at using its all assets in generating revenue. On the other hand, Trust Bank Limited shows a lowest ratio 1.16% in 2012 This lowest the number of ratio indicates that the bank is in poor position than compare with other years even It indicates that this Bank has less efficiency at using its all assets in generating revenueIn 2008-2012, Bank Asia shows quite similar ratio over the five years. However in 010 a highest ratio of Bank Asia compare with other years . This higher the number of ratio indicates that the bank is in better position than other in 2010. It also indicates that this Bank has more efficiency at using its all assets in generating revenue. On the other hand, Bank Asia shows a lowest ratio 2.29% in 2011 This lowest the number of ratio indicates that the bank is in poor position than compare with other years even It indicates that this Bank has less efficiency at using its all assets in generating revenueIn 2010, City Bankshows a highest ratio of 3.93% compare with other years . This higher the number of ratio indicates that the bank is in better position than other in 2008. It also indicates that this Bank has more efficiency at using its all assets in generating revenue. On the other hand, Trust Bank Limited shows a lowest ratio 2.64% in 2008 This lowest the number of ratio indicates that the bank is in poor position than compare with other years even It indicates that this Bank has less efficiency at using its all assets in generating revenueIn 2010, IFIC Bank shows a highest ratio of 2.98% compare with other years . This higher the number of ratio indicates that the bank is in better position than other in 2008. It also indicates that this Bank has more efficiency at using its all assets in generating revenue. On the other hand, IFIC Bank Limited shows a lowest ratio 1.75%in 2008 This lowest the number of ratio indicates that the bank is in poor position than compare with other years even It indicates that this Bank has less efficiency at using its all assets in generating revenue.If we go through cross Sectional analysis we get:

In 2008, BRAC Bank Limited shows a highest ratio of 4.36% compare with other banks. This higher the number of ratio indicates that the bank is in better position than other in 2008. It also indicates that this Bank has more efficiency at using its all assets in generating revenue. In 2009, DBBL shows a highest ratio of 3.41% compare with other banks. This higher the number of ratio indicates that the bank is in better position than other in 2009. It also indicates that this Bank has more efficiency at using its total assets in generating revenue. In 2010, BRAC Bank Limited shows a highest ratio of 4.25% compare with other banks. This higher the number of ratio indicates that the bank is in better position than other in 2010. It also indicates that this Bank has more efficiency at using its total assets in generating revenue. In 2011, BRAC Bank Limited & DBBL show a highest ratio of 4.09% and 4.04% respectively compare with other banks. These higher the number of ratio indicates that these banks are in better position than other in 2011. It also indicates that these Banks have more efficiency at using their total assets in generating revenue. In 2012, DBBL shows a highest ratio of 4.49% compare with other banks. This higher the number of ratio indicates that the bank is in better position than other in 2012. It also indicates that this Bank has more efficiency at using its total assets in generating revenue. 3.4.2 FIXED ASSET TURNOVERThe fixed asset turnover ratio is the ratio of revenue to net fixed assets. A high ratio indicates that a company is doing an effective job of generating sales with a relatively small amount of fixed assets. On the other hand if the ratio is declining over time the company has either over invested in fixed assets or it needs to issue new products to revive its sales.The formula:Fixed Asset Turnover = Net interest Income / Fixed Assets

NoBanks Name20082009201020112012

1AB Bank Limited0.83221.19140.88670.62120.7383

2BRAC Bank Limited2.14401.89172.89542.31832.5253

3DBBL1.02491.54211.26931.24511.4968

4Exim bank6.02295.77057.73308.045211.5392

5IBBL1.67491.27351.52541.91801.2022

6ONE Bank Limited1.65422.37003.00422.35662.5061

7Trust Bank Limited3.42422.39423.56482.10182.8356

8Bank Asia1.91561.71791.61150.58910.8140

9City Bank0.59910.74271.11450.74240.8056

10IFIC Bank2.28511.78851.00730.92641.1978

If we go through time series analysis we get:

In between 2008-2012, only AB Bank Limited shows a highest ratio in 2009 at1.1914 compare with other years. This higher the number of ratio indicates that the bank is in better position than other in that period. AB Bank Limited was minimum in 2011 at 0.6212 which indicates that this Bank is doing less effective job of generating interest with a relatively small amount of fixed assets.In between 2008-2012, only BRAC Bank Limited shows a highest ratio in 2010 at2.8954 compare with other years. This higher the number of ratio indicates that the bank is in better position than other in that period. BRAC Bank Limited was minimum in 2009 at 1.8917 which indicates that this Bank is doing less effective job of generating interest with a relatively small amount of fixed assets.In between 2008-2012, only DBBL shows a highest ratio in 2009 at 1.5421compare with other years. This higher the number of ratio indicates that the bank is in better position than other in that period. DBBL was minimum in 2008 at 1.0249 which indicates that this Bank is doing less effective job of generating interest with a relatively small amount of fixed assets.In between 2008-2012, only Exim bank shows a highest ratio in 2012 at 11.5392 compare with other years. This higher the number of ratio indicates that the bank is in better position than other in that period. Exim bank was minimum in 2009 at 5.7705 which indicates that this Bank is doing less effective job of generating interest with a relatively small amount of fixed assets. In between 2008-2012, only IBBL shows a highest ratio in 2011 at 1.9180 compare with other years. This higher the number of ratio indicates that the bank is in better position than other in that period. IBBL was minimum in 2009 at 1.2735 which indicates that this Bank is doing less effective job of generating interest with a relatively small amount of fixed assets.In between 2008-2012, only ONE Bank Limited shows a highest ratio in 2010 at 3.0042 compare with other years. This higher the number of ratio indicates that the bank is in better position than other in that period. ONE Bank Limited was minimum in 2008 at 1.6542which indicates that this Bank is doing less effective job of generating interest with a relatively small amount of fixed assets.In between 2008-2012, only Trust Bank Limited shows a highest ratio in 2010 at 3.0042 compare with other years. This higher the number of ratio indicates that the bank is in better position than other in that period. Trust Bank Limited was minimum in 2011 at 1.6542which indicates that this Bank is doing less effective job of generating interest with a relatively small amount of fixed assets.In between 2008-2012, only Bank Asia shows a highest ratio in 2008 at 1.9156 compare with other years. This higher the number of ratio indicates that the bank is in better position than other in that period. Bank Asia was minimum in 2011 at 0.5891 which indicates that this Bank is doing less effective job of generating interest with a relatively small amount of fixed assets.In between 2008-2012, only City Bank shows a highest ratio in 2010 at 1.1145 compare with other years. This higher the number of ratio indicates that the bank is in better position than other in that period. City Bank was minimum in 2008 at 0.5991 which indicates that this Bank is doing less effective job of generating interest with a relatively small amount of fixed assets.In between 2008-2012, only IFIC Bank shows a highest ratio in 2008 at 2.2851 compare with other years. This higher the number of ratio indicates that the bank is in better position than other in that period. IFIC Bank was minimum in 2011 at 0.9264 which indicates that this Bank is doing less effective job of generatingIf we go through cross Sectional analysis we get:

In between 2008-2012, only Exim bank shows a highest ratio compare with other banks. This higher the number of ratio indicates that the bank is in better position than other in that period. It was maximum in 2012 at 11.5392 and minimum in 2009 at 5.7705 It also indicates that this Bank is doing an effective job of generating interest with a relatively small amount of fixed assets.Again in 2008 & 2009 City Bank shows minimum ratio of 0.5