P13046 (31%)

Internship Report On
“Financial Performance Analysis of Bangladesh

Krishi Bank”
1
© Daffodil International University
Internship Report
On
“Financial Performance Analysis of Bangladesh Krishi Bank (BKB)”
PREPARED BY
Abid Hossan Ayan
ID No: 151-11-4375
Batch: 40th
Bachelor of Business Administration
Daffodil International University
PREPARED FOR
Nusrat Nargis
Assistant Professor
Department of Business Administration
Faculty of Business & Entrepreneurship
Date of Submission:
05-02-2019
2
Letter of Transmittal
05/02/2019
Nusrat Nargis
Assistant professor
Faculty of Business &Entrepreneurship
Subject: Submission of Internship Report.
Dear Sir,
With pleasure, I am submitting my internship report of “Financial Performance Analysis of

Bangladesh Krishi Bank” which was given me as a part of my BBA Program. I have done
my level best to complete this report with the necessary information and suggestion from
you.
I hope that the report will meet your expectations.
Thank you
Sincerely,
…………...
Abid Hossan Ayan
ID No: 151-11-4375
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Certificate of Approval
I am pleased to attest that the Internship Report on “Financial Performance Analysis of

Bangladesh Krishi Bank” prepared by Abid Hossan Ayan bearing ID no: 151-11-4375 of
Bachelor of Business Administration (Major in Finance)Under the Department of Business
administration. This report is recommended for submission and defense.
Abid Hossan Ayanbears a good moral character and a very pleasing personality. It has indeed
been a great pleasure working with him. I wish him all success in life.
I wish him all victory in life.
………………..
Nusrat Nargis
Assistant Professor
ii
Acknowledgment
First, I would like to thank Almighty Allah that he gives me good health to complete this
report in time. Then I would like to thank my Supervisor Mrs. Nursrat Nargisfor her
continual support, advice, guidance throughout the intact making of this report. I would like
to give my -sincere regards and gratitude to my honorable teachers whose kinds of guidance
and support helped me to complete my BBA program.
Last but not the least; I would like to thank all the members of the corporate branch of
Bangladesh Krishi Bank limited and their help and support throughout the completion of this
report. Special thanks to Mrs.Nazma Salam AGM for supporting me.
iii
Executive Summary
Title of the report comes as an Overview on “Bangladesh Krishi Bank”.This report focuses
on the Financial Performance of Bangladesh Krishi Bank.
The objective of the report was to know about the Ratios of a bank and their landing
procedures.
In this report, primary and secondary data both are used. Primary sources are three-month
practical data in the internship; face to face conversation and relevant file study provided by
the bank officers. The secondary sources are a financial statement published by Bangladesh
Krishi Bank in their website.
Performance making is the most important part of banking. If there is a lacking in their
performance, then their output will be low.Bangladesh Krishi bank follows the
Implementation and rules and guidelines of Bangladesh Bank. Performance of a bank is a
part which cannot be refused.
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TABLE OF CONTENTS
Chapter 1: Introduction .............................................................................................................. 1

1.1 Introduction ...................................................................................................................... 2
1.2 Origin of the study............................................................................................................ 2
1.3 Background of the study .................................................................................................. 2
1.4 Scope of the study ............................................................................................................ 3
1.5 Objectives of the study ..................................................................................................... 3
1.6 Methodology of the study ................................................................................................ 3
1.6.1 Data source ................................................................................................................ 3
1.6.2 Data Collection Procedure ......................................................................................... 4
1.7 Limitations ....................................................................................................................... 4
Chapter 2: Overview of Bangladesh Krishi Bank...................................................................... 5

2.1 Historical Background...................................................................................................... 6
2.2 Corporate Information ...................................................................................................... 6
2.3 Mission, Vision, Objectives of BKB ................................................................................ 7
2.3.1 Mission of BKB ......................................................................................................... 7
2.3.2 Vision of BKB: .......................................................................................................... 7
2.3.3 Strategic Objectives of BKB ................................................................................... 7
2.4 Products and Services of Bangladesh Krishi Bank: ......................................................... 8
2.5 Organogram of Bangladesh Krishi Bank ......................................................................... 9
Chapter 3: Analysis of activities of Bangladesh Krishi Bank.................................................. 10

3.1 Lending Credit Facilities ................................................................................................ 11
3.2 Lending Financing.......................................................................................................... 11
3.2 Other lending activities of BKB Bank ........................................................................... 12
3.3 Poverty Alleviation ........................................................................................................ 13
Chapter 4: Analyzing The Lending Process of BKB ............................................................... 14

4.1 The process of Lending Activities ................................................................................. 15
4.1.1 Beef fattening Joint Program ................................................................................... 15
4.1.2 Banks have been implementing Soniuwarva ........................................................... 15
4.1.3 Grameen Women Employment Generation Project ADB Loan No 1067 BAN (SF)
.......................................................................................................................................... 15
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4.1.4 BKB-NGO Micro Credit Program .......................................................................... 16
4.1.5 Special Micro Credit Program for the Disabled ...................................................... 16
4.1.6 Manipuri Small Business Credit Program ............................................................... 16
4.1.7 Special credit program for Rakhines under Cox's Bazar district ............................. 16
4.1.8 Tree Plantation Program .......................................................................................... 16
4.1.9 Establishment of breeding farms of Black Bengal goat program ............................ 17
4.1.10 Poverty Reduction through Production and Improvement of Sheep ..................... 17
CHAPTER 5: Financial Performance Analysis of Bangladesh Krishi Bank From Year 2013
to 2017 ..................................................................................................................................... 18
5.1 Liquidity Ratio ............................................................................................................... 19
5.1.1 Current Ratio ........................................................................................................... 19
5.1.2 Quick Ratio .............................................................................................................. 20
5.1.3 Net Working Capital ................................................................................................ 21
5.2 Activity Ratio ................................................................................................................. 22
5.2.1 Total Asset Turnover ............................................................................................... 22
5.3 Debt Ratio ...................................................................................................................... 23
5.3.1 Debt Ratio ................................................................................................................ 23
5.3.2 Debt to Equity Ratio ................................................................................................ 24
5.3.3 Time Interested Earned Ratio .................................................................................. 25
5.4 Profitability Ratio ........................................................................................................... 26
5.4.1 Net Profit Margin..................................................................................................... 26
5.4.2 Return on Asset (ROA) ........................................................................................... 27
5.4.3 Return on Equity (ROE) .......................................................................................... 28
5.4.4 Investment to Deposit Ratio .................................................................................... 29
5.4.5 Earnings Per Share (EPS) ........................................................................................ 30
Horizontal Analysis .............................................................................................................. 31
CHAPTER 6: Findings, Recommendations & Conclusion ..................................................... 33

6.1 Findings .......................................................................................................................... 34
6.2 Recommendations .......................................................................................................... 35
6.3 conclusion....................................................................................................................... 36
6.4 Reference ........................................................................................................................ 36
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Chapter 1:Introduction
1
1.1 Introduction
The internship program is an essential part of the Bachelor of Business Administration

(BBA). This program creates a different opportunity for students to apply their theoretical
knowledge in real life and to gain profitable real-world business experience. At the time of
the program, students can use the various reasonable tools to solve the problem, while being
fortunate enough to know the real business status as well.
Modern development is playing its role to keep the economic development cycle moving
forward. Bank's strong need for every economic activity, in fact, there is an aspect of
development activity where the state is active or otherwise where the bank does not have the
role.
1.2 Origin of the study
The BBA internship program requires a prioritized take-over to test the real-life challenge
handle by the intern. This is the main part of the BBA (Bachelor of Business Administration)
which will have to face all the BBA students. Students come together in multiple projects and
come forward to different corporations. This program has three months duration. At the end
of the ceremony, Internships will perform tasks and discover the project through the writing
of internship report on relevant topics. During this program, supervisors manage individual
students - from one university and the other from the corporation. During this time I worked
closely with the farmhouse branch. This report provides research results through
International-Bangladesh Krishi Bank Limited. I was allocated about "Financial Performance
Analysis of Bangladesh Krishi Bank Limited".
1.3 Background of the study
There is a real indication of the knowledge acquired from an institutional course of research
because if it is not practiced in real life, only a lot of theoretical knowledge will become
ineligible. So to make us valuable, we need the right activities of our education to get some
good from our theoretical education. Such an underlying internship can be made available on.
2
The Internship Program Act is a strong consideration because it allows a student to intimate
business activities. The student often works with the people of the organization and tells
about the organization's work. This program gives the student the ability to improve his
practical skills and learning skills.
The internship schedule of the Bachelor of Business Administration Course was given to me
for my internship at the Bangladesh Krishi Bank for three months.
1.4 Scope of the study
Now, banks will have to face foreigners in the market place with regional organizations to
increase growth. The investigation of the plan is also applicable to the provision of this
report. Corporations have completed a structure and look for the near future. All
interpretations of the bank during this report are limited to its services.It explores the
structure and the organization, its financial performance increasing the real-life of its
operations. The broad organizational setup of research, the purpose, and performance limited.
1.5 Objectives of the study
To analyze the activities of Bangladesh Krishi Bank.

To evaluate the financial performance of Bangladesh Krishi bank from 2013 to 2017.
To find out the problems of the bank.
To provide some recommendations about the problems of the bank.
1.6Methodology of the study
This report has been made on the experience collected from my intern period. The
performance analysis of Bangladesh Krishi Bank Ltd. has been shown in this report based on
a financial report (2013-2017). Those findings represent via graphs, charts, and tables in the
interpreting part. According to my supervisor instruction, all of the information was applied
successfully.
1.6.1Data source
This report is based on the secondary data source.
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Secondary data sources:
Annual reports of BKB.
Different categories of textbook & journals.
Different types of Articles.
Little of my course knowledge as related to this intern report.
Support from the network and internet
1.6.2 Data Collection Procedure
For the “Financial Performance Analysis of Bangladesh Krishi Bank Limited” I mostly used
Secondary data. By this, I also collect some statistics by taking executives opinion from the
bank and direct participation while I doing the internship part at the bank.
1.7 Limitations
Perfect and analyzing a wide range of banking partnerships and in some areas, it is not easy.
Moreover, for some reasons security and privacy, the bank generally does not want to
discover all the reports related to their corporation. Another major limitation was that the
duration of the duration was only 11 weeks and as the interim member of the corporation, it
was difficult for me to follow certain issues and other issues. The limitations I have faced
whiledeveloping this Report are given as below:
Time limitations: It was a very short time to complete the report. It should be ready
in 2 months. So there is a lack of time.
Data is invalid: due to lack of authority and security reduction, there is a lot of lack
of financial analysis and data gathering for foreign trade.
Lack of records: It is a matter of fact that when an organization is in the current
position, they do not keep old records, they send it to the headquarters, so there is a
lack of report when preparing the report.
The inadequacy of experience: The lack of involvement has acted as a limitation on
the analysis of the subject. The lack of proper learning about the export and import
business of any corporation.
4
Chapter 2: Overview of Bangladesh Krishi
Bank
5
2.1 Historical Background
Under the President's Order 27 of 1973, Bangladesh Krishi Bank was established as a fully
publicly owned bank. BKB primary purpose is to provide farmers' credit facilities for the
development of farmers and farmers engaged in the development of farmers and agricultural-
based and cottage industries. The bank is managed according to policies and policies of the
People's Republic of Bangladesh. The person and corporate body loan approval is related to
following the main function-
Crop production
Purchase irrigation equipment and equipment
Development of horticulture
Animal husbandry and finally
Animal Husbandry2.2Company Profile
2.2Corporate Information
Name of the Bank : Bangladesh Krishi Bank

Status : Government of Bangladesh owns Bangladesh Krishi Bank
Date of Incorporation : June 02, 1973
Inauguration First Branch : August 01, 1975
Authorized Capital : Tk. 300 Core
Paid-up Capital : Tk. 300 Core
Number of Branches : 942 Branches
Proposed Branches : 197 Branches
Number of Employees : 10,454
Credit Rating : Long Term (Adequate Safety)
Short Term (Good Grade)
6
2.3 Mission, Vision, Objectives of Bangladesh Krishi Bank
2.3.1 Mission of BKB
Bangladesh Krishi Bank believes together with its customer, on the path of growth and
progress in the way of progress. To achieve the desired goal, excellence will be achieved in
all stages with increasing growth environment, because, Bangladesh Krishi Bank believes
that the superiority line is not finished. Bank's strategic planning and networking will
strengthen its competitive edge to others in a rapid competitive environment. Its personalized
quality service to customers, along with the continual improvement trend, will provide the
basis for our operational success.
2.3.2 Vision of BKB
Bangladesh Krishi Bank has highlighted the following corporate objectives to make its goals
easier:
Be the most careful, customer friendly and service government bank.

To ensure ethics and transparency of all levels.
Ensure sustainable growth and establish full value of shareholders.
Above all, add effective contributions to the national economy.
Finally, the bank insists.
Providing efficient customer service
Customers' money and their financial advisers are being trusted repository
Its products make customers superior and fruitful
His charity and humanitarian activities expand its social commitment.
2.3.3 Strategic Objectives of BKB
The primary objective of BKB is to provide credit facilities to the farmers for the
development of agriculture and entrepreneurs engaged in the development of
agro-based and cottage industries.
7
The Bank is guided in accordance with the policies and principles of the
Government of the People’s Republic of Bangladesh.
2.4 Products and Services of Bangladesh Krishi Bank:
Letter of Credit (LC)

Bill purchase/Discount
Export Credit (Pre Shipment & Post Shipment)
Remittance (Inward, Outward)
Collection, Purchase, and Sale of Foreign Currency and Travelers Cheques.
Maintenance of Student education file.
Guarantees in Foreign Currency.
Foreign Currency accounts.
NFCD (Non-Resident Foreign Currency Deposit) A/C.
RFCD (Resident Foreign Currency Deposit) A/C
Forward Contracts
Correspondent Banking Relations.
Taka Drawing Arrangement
Dealing Room
8
2.5 Organogram of Bangladesh Krishi Bank
9
Chapter 3: Analysis of activities
ofBangladesh Krishi Bank
10
3.1 Lending Credit Facilities
BKB provides credit facilities to individual and corporate bodies engaged in crop production,
horticulture, forestry, and fisheries. It also offers financial and technical assistance to agro-
based and cottage industries. Its charter requires the bank to act on commercial considerations
but with due regard to the development of agriculture, and agro-based and other related
industries in rural and urban areas. Under the provisions of its charter, BKB is supposed to
give preference to the credit needs of small farmers and other disadvantaged groups. BKB,
therefore, has to fulfill both social and economic objectives.
3.2 Lending Financing
The bank provides short, medium and long-term financing for the production, processing,
warehousing, and marketing of agricultural and agricultural-based industrial products. The
terms of the loan are given for the purpose, due to the time of pregnancy and income
generation. Generally, the bank provides short-term loans for seasonal agricultural production
activities. Mid-term loans are approved for adopting farm machinery, low lift pump, hand
pump, agricultural equipment's, calves, cart, goat, dairy, poultry, and draft animals,
transportation facilities for agricultural production and related development activities. Long-
term loans, including a tractor, power tailor and shallow tube well, construction of ice plant,
the establishment of agro-based industries, expansion of tea garden or plantation of farms,
forests, and fisheries, improved for capital. For the short-term loan, the duration of the
amortization period is 18 months, for the medium term loan for 5 years and for a long term
loan of more than 5 years.
Lending programs:
Apart from the above areas, BKB provides about Tk 14 billion annually in financing
numerous projects and special programmer such as the Special Agricultural Credit
Programmed, and in helping contract growers of BADC, funding schemes
of POTATO cultivation and preservation, TEA plantation, and installation of hand pumps,
shallow and deep tube wells, the Rural Finance Experiment Project, projects in dairy farming,
poultry, fisheries, aquaculture and livestock, loans for production and marketing
of TOBACCO, BANANA and COTTON, the Betagi Community Forest Project, Swanirvar
Bangladesh, and financing self-employment schemes of educated unemployed youth.
11
Lending schemes
In order to achieve self-sufficiency of food through agricultural development, BKB plans to

prepare an annual plan for importing alternative agricultural products, meeting the growing
demand for agricultural credit and identifying appropriate areas for agricultural development.
Sector
BKB has introduced some small savings schemes for those regular deposits as well as those
limited groups. BKB has introduced seven years 'Bangladesh Krishi Bank Sansaya Project' in
2008. Under its social and poverty alleviation strategy initiative, BKB provides loans and
banking facilities for the farmers to share simple terms.
Bangladesh Krishi Bank is mainly based for the landing process of Bangladesh. The bank
mainly serves all the landing helps to the farmers.
3.2 Other lending activities of BKB Bank
Crop, Fisheries, Livestock, Agricultural Equipment, Crop Stocking and

Marketing, Poverty Alleviation, Agriculture Based Industries, and Loans
Allocated in SCC and SMEs.
Various deposit schemes, including current, savings, SND and expiration deposits.
Selling and selling of bonds of various government 'transparency' and prize bonds.
Foreign remittance from foreign workers working overseas abroad is available.
Distribution of allowances of freedom fighters, old age, widow, distressed
divorce, poor disabled; Government provides social welfare programs and pension
for retired members of the Armed Forces to pay scholarships under pension
payment.
Payment of government bills for the collection of rice, paddy, and other food; Tax
collection for land development and other utility services.
12
3.3 Poverty Alleviation
Bangladesh Krishi Bank was established to strengthen the rural economy by increasing credit
support in agriculture and agro-based sectors. Considering the importance of microcredit and
BKB has adopted its own autonomous programs aimed at encouraging employment and
social development, and in collaboration with local and foreign organizations. These
programs are designed to cover all sections of the poor population, whether skilled or
uneducated, such as small and marginal farmers, landless laborers, selfless women, disabled,
unemployed youth and rural artists etc.
To create employment opportunities through income generating activities.

To empower rural women to establish their own rights.
To improve the living standard of rural people.
To alleviate the poverty of the poor people.
To make easy access to institutional credit facilities and resources.
To mobilize rural savings.
To make optimum utilization of rural resources.
To engage inactive human resources of the rural areas in productive/economic
activities.
To engage rural people in the development process of the country.
To eliminate exploitation done by the money lenders.
13
Chapter 4: Analyzing The Lending Process
of BKB
14
4.1 The process of Lending Activities
4.1.1 Beef fattening Joint Program
This is a bank`s own financed program. Bank launched this program in 1994. The main
objective of this program is to fill up the deficiency of animal protein in the country as well
as the creation of self-employment for poor and unemployed people living in the villages.
Under this program, a person can get a loan amounting up to Tk.25000/- for 5 calves against
the guarantee of a bank official or local elite. The rate of interest is 10%. The loan is to be
repaid with interest in one installment within one year. About 89025 beneficiaries have been
provided with Tk.1481.30 million since its inception.
4.1.2 Banks have been implementing Soniuwarva
Credit Program for equal protection since 1979. Creating employment for landless and
limited farmers, increasing living standard, creating social and moral values, eliminating
illiteracy, creating health and family planning services etc. The objectives of this program
Beneficiary landless, rural poor and worst cultivable land under the program is 0.40 acres and
maximum annual income is 20 thousand taka. 212 branches of 31 districts (regions) are
involved in this program. The beneficiary group should be formed (in every 5 members) and
a center (comprised of 5 groups). BKB and Swanirvar Bangladesh jointly manage this
program. Credit-free collateral but require group guarantee for each other. The maximum
loan amount is 15,000 / - per kg. This short-term credit (52 equal weekly health benefits will
be restored in one year). Sunishvar workers are properly recommended to distribute the
benefits to the beneficiaries. Responsible for the formation of self-reliant Bangladesh Group,
responsible for the training of beneficiaries and recovery of loans. The interest rate is 16%.
(6% service charge for self-employed, BKB 10% interest).
4.1.3 Grameen Women Employment Generation Project ADB Loan No 1067 BAN (SF)
This joint project was started in 1993 to test the concept of co-participants of millions of
government organizations (GOSs) and non-governmental organizations (NGOs) in the rural
areas to provide employment for poor women. Women Affairs Department (DWA), 12
NGOs, 12 thanas (Upazila) and BKB jointly implemented the project. NGOs organize people
groups, train them under the supervision of DWA and suggest funding by ADB. It is a
parallel free credit. The interest rate is 12%. About 67,402 beneficiaries have paid 1554.70
million rupees.
15
4.1.4 BKB-NGO Micro Credit Program
This program is a replication of Rural Women Employment Creation Project

(RWECP).NGOs organizes individuals into groups, provides the training and recommends
for credit. BKB provides credit from its own fund. This is also a collateral free credit. The
interest rate is 12.5%. About 16636 beneficiaries have been provided with Tk. 136.00 million
since its inception.
4.1.5 Special Micro Credit Program for the Disabled
This program was launched in 2002 to create social employment and social socio-economic
conditions by creating jobs for people with disabilities. Department of Social Welfare and
Disabled Foundation Extension Services. It is a parallel free credit given to all branches of
the bank. The interest rate is 10%. About 530 beneficiaries were paid. 5.60 million.
4.1.6 Manipuri Small Business Credit Program
The program was launched in 2003 with a view to providing capital working in the handloom
industry operated by Manipuri women living in Sylhet region. Bank officials organized
Manipuri women with handloom and training/education/ operation experience.
Eligible women are organized into a 5-member group. It is a parallel free credit provided
from the bank's own fund. The interest rate is 10%. About 684 beneficiaries have been
provided Tk 21.50 million (up to 30 September 2008) since its establishment.
4.1.7 Special credit program for Rakhines under Cox's Bazar district
This program was launched in 2003 with a view to providing the capital loan to work for
handloom and cottage industry products and marketing. Rakhine community resident of
Cox's Bazar district was financed. Bank officials organized Rakhines in a 5-member group. It
is a cooperative free credit programmer from the banks' own fund. The interest rate is 10%.
About 469 beneficiaries were given money. 15.10 million in its opening (until September 30,
2008).
4.1.8 Tree Plantation Program
16
In 2002 and 2003, BKB has launched 8 tree plantation programs - for example, all types of
nurseries, herbs, horticulture development, fruit and plantation plants, bamboo production,
herbal gardens, coconut gardens, plantation plant. , Rattan production For the purpose of
reducing poverty, due to the proper use of the fallow land, treatment of drugs and the
development of the environment, these activities have been started for the development of
more trees in banks to increase tree production. Under this program, the credit is equal to
Taka free of cost. 25,000 / -. The interest rate is 8%. About 3003 beneficiaries have been
provided Tk 303.50 million (up to 30 September 2008) from the beginning.
4.1.9 Establishment of breeding farms of Black Bengal goat program
This program has been adopted to ensure the supply of children of the Bay of Bengal to
support poverty alleviation national programs by keeping goats. Under this program, a farm
comprising 50 goats is considered as a small farm and 51-200 goats are considered to be a
farm. Loan medium word Credit limit money 30,000 / - 10 goats (including a goat) for a
small farm. These credit limits are calculated, bought for goats and counted for purchasing
goats and primary feed. This range is proportionate to the number of goats and goats for a
small farm.
4.1.10 Poverty Reduction through Production and Improvement of Sheep
This is a government-run program which has been started at the end of the fiscal year 2005-
05. It will be implemented mainly in 22 upazilas selected under BKB's regional 11 districts.
The Department of Livestock provides extensive services and BKB lends itself to its own
fund. Under this program, parallel credit amount up to 50,000 / -. The interest rate is 8%. This
loan will be repaid within four years with 6 equal installments including one year's
contribution. Nearly 360 beneficiaries paid 3.80 million rupees (till September 3.8).
17
CHAPTER 5: Financial Performance
Analysis of Bangladesh Krishi Bank From
Year 2013 to 2017
18
5.1 Liquidity Ratio
Liquidity ratio calculates of the enterprise’s short- run ability to pay its growing
accountability.
5.1.1 Current Ratio
The current ratio is basically for measuring its short-term obligations based on how much
assets the firm has. The higher the ratio is better for the firm.
Year 2013 2014 2015 2016 2017

Current Ratio 1.058 1.059 1.044 1.037 1.036
Current Ratio
1600
1400
1200
1000
800
600
400
200
0
2013 2014 2015 2016 2017
Interpretation:Basically, the higher the current ratio, the more liquid the firm is thought to
be. In 2014 the ratio was preserving 1.059. Current assets against 1 too. Current liability but
in 2016 its current assets reduced in 1.037. Whereas mainly banking industry maintains 1: 1
current ratio. In 2017 it again reduced from 1.037 to 1.036. The current ratio has to be 2
where the bank has no sign of so thatthey need to improve.
19
5.1.2 Quick Ratio
The quick ratio is a measure of how well a company can meet its short-term financial
liabilities. Also known as the acid-test ratio.
Year 2013 2014 2015 2016 2017
Quick 1.23 1.31 1.37 1.33 1.28

Ratio
Quick Ratio
1600
1400
1200
1000
800
600
400
200
0
2013 2014 2015 2016 2017
Interpretation:The acid test ratio measures a company's liquidity by demonstrating its

ability to repay its current liabilities with fast assets. If a company has sufficient rapid assets
to cover its current total liabilities, the company can pay off its obligations without having to
sell any long - term or capital assets.
An acceptable quick ratio for a company is 1:1. Here in 2013 where BKB is going at 1.23 and
continue increasing till 2015 with 1.37. Though BKB has had the acceptable ration in 2016
and 2017 also. We can see that BKB has maintained a better ration in terms of acceptable
ratio.
20
5.1.3 Net Working Capital
The percentage of investment that is needed to run the business is called working capital.
Working capital is like the blood of the firm. Networking capital is the division between the
firm’s current assets and its current liabilities. Networking capital is not basically a ratio it is
a common measure of a business overall liquidity that it contains.
Net Working capital=Current Asset – Current Liabilities
Year 2013 2014 2015 2016 2017

NetWorking 1187.77 1490.32 1283.5 1183.25 1338.10
Capital
Net Working Capital

1600
1400
1200
1000
800
600
400
200
0
2013 2014 2015 2016 2017
Interpretation: For one company or firm working capital is needed because the daily
activities cannot be run without it. From the above graph, it has been shown that in
2014Krishi bank’s net working capital was 1490.32 which was really good that means Krishi
bank was in good position.In 2015 and 2016 it started to reduce but in 2017 it increased again
which means they are in good position now.
21
5.2 Activity Ratio
Activity ratio shows how efficiently the enterprise is using the assets employed. In other
word, it calculates the speed with which different accounts are turned into sales or cash-
inflows or outflows.
5.2.1 Total Asset Turnover
It measures that how effectively all the assets can be turned into liquidating to generate sell.
Total Asset Turnover= Net sales / Total Asset
Year 2013 2014 2015 2016 2017

Total Asset 0.071 0.072 0.083 0.066 0.079
Turnover(Times)
Tottal Asset Turnover

0.09
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
2013 2014 2015 2016 2017
Interpretation: In 2015 and 2017, Krishi bank’s total asset turnover was higher at 0.083 and
0.079 which means to 8.3 and 7.9 times. Basically, the higher a firm’s total asset turnover, the
more effectively its assets have been used and 4 to 6 times is the standard position but it also
depends on the corporation. In 2016 it was reduced at 0.066 which is not a good sign for the
company.
22
5.3 Debt Ratio
Debt ratio calculates of the degree of preservation for long- term creditors and investors.
5.3.1 Debt Ratio
The debt ratio calculates the preservation of total assets provided by the firm’s creditors. It
also helps to calculate the risk because debt subsists of a fixed engagement in the form of
interest and principal repayments.
Year 2013 2014 2015 2016 2017

Debt 94.51 94.95 95.74 96.46 96.51
Ratio (%)
Debt Ratio
97
96.5
96
95.5
95
94.5
94
93.5
2013 2014 2015 2016 2017
Interpretation: This graph indicates that the debt ratio increased most in 201796.51% from
last three years. The Debt ratio calculates the percentage of total assets provides by the firm’s
creditors. The lower the ratio advised less risky. Krishi bank’s debt ratios were increasingline
from 2015 to 2017 that means bank’s dependency on loan were constantly increasing.
23
5.3.2 Debt to Equity Ratio
This ratio judged the firm’s capital system. It gives a measure of risk to creditors by seeing
the funds invested by creditors (debt) and investors (equity). If the percentage of debt is
higher than it is a risk to any creditor.
Debt to Equity Ratio= Total Liabilities / Shareholders Equity
Year 2013 2014 2015 2016 2017

Debt to 17.22 17.00 22.47 27.27 27.61
Equity
Ratio
Debt to Equity Ratio

30
25
20
15
10
0
2013 2014 2015 2016 2017
Interpretation:From the above graph it can be realized that Krishi Bank’s debt to equity
ratio was increased year by year except 2013 and 2014 where the point is 17.22. In 2017 it
was very higher at 27.61 which indicates the higher percentage of debt is a higher degree of
risk of the bank.
24
5.3.3 Time Interested Earned Ratio
Times interest earned ratio calculates the firm’s ability to make constitutional interest to
make constitutional interest payments.
Time Interest Earned Ratio =Earnings before Interest & Taxes (EBIT) / Interest.
Year 2013 2014 2015 2016 2017
Time 1.21 1.33 1.54 1.50 1.60

Interest
Earned
Ratio
Time Interest Earned Ratio

1.8
1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
2013 2014 2015 2016 2017
Interpretation:This figure indicates that Krishi bank's time interest earning ratio was
increasing year by year where in 2013 it was 1.21 in 2014 it increased to 1.33.From 2015 to
2017 it was between 1.50 to 1.60 that means bank's interest payment capacity was
consistently increasing.
25
5.4Profitability Ratio
Profitability ratio calculates of the degree of success or downfall of a given enterprise or

corporation for a fixed period of time.
5.4.1 Net Profit Margin
The net profit margin measures the portion of each sales taka remaining after all expenses,
counting taxes, have deducted. The higher the corporation’s net profit margin is better.
Net Profit Margin=Net Profit after Tax / Sales
Year 2013 2014 2015 2016 2017
Net Profit 8.15 7.59 3.23 18.70 4.81

Margin%
Net Profit Margin

20
18
16
14
12
10
8
6
4
2
0
2013 2014 2015 2016 2017
Interpretation:In this figure, it has been shown that in 2013 and 2014 the ratio was average
at 8.15% and in 2015 it reduced to 3.23% and again in 2016 net profit margin increased to
18.70% which is very good that was really high above from all the years. Which is a good
sign.But in 2017 it decreased very poorly to 4.81% which is a massive reduction where the
bank can work.
26
5.4.2 Return on Asset (ROA)
Return on asset, which is often said that the firms return on total assets, calculates the overall
effectiveness of management in creating profits with its available remaining assets. The
higher ratio is better.
Return on Asset (ROA) = Net Profit after Taxes / Total Assets
Year 2013 2014 2015 2016 2017
Return On -2.01% -14.05% -0.94% -2.90% -2.35%

Asset
Return on Asset
0
2013 2014 2015 2016 2017
-2
-4
-6
-8
-10
-12
-14
-16
Interpretation:In this figure, it has been shown that how return on asset goes on for BKB
form 2013 to 2017. We can see that its all negative out there where in 2014 it was (-14.05)
the most. As we know that return on asset needs to be 5% for a company. In that compare it
seems that BKB has not making money from the use of its assets.
27
5.4.3 Return on Equity (ROE)
The return on equity calculates the return earned on the owner’s preferred stock and common
stock) investment. Mainly the higher the return, the better is for the owners.
Return on Equity=Net Profit after Tax / Shareholders Equity
Year 2013 2014 2015 2016 2017

Return On 3.81% 3.29% 1.84% 10.24% 4.50%
Equity
Return On Equity
12
10
0
2013 2014 2015 2016 2017
Interpretation: Here we can see that from 2013 to 2015 the return on equity was very poor
which was in between 1.9% to 3.9% of Krishi bank that meant BKB could not earn money on
less investment but in 2016 it performed really wellin earing money with less investment
where in 2017 it goes down again with a 4.2%.
28
5.4.4 Investment to Deposit Ratio
The advances to deposits ratio calculate loans as a portion ofdeposits. Aratio shows how
much the bank is using its investment.
Investment to Deposit Ratio=Total Investment / Total Deposit
Year 2013 2014 2015 2016 2017

Investment 0.588 0.554 0.555 0.623 0.644
to Deposit
Ratio
Investment to Deposit Ratio

3
2.5
1.5
0.5
0
2013 2014 2015 2016 2017
Interpretation:Investment to deposit ratio shows how much amount is used in the

investment of the bank. From this graph, it has been shown that Krishi Bank’s investment to
deposit ratio was decreasing between 2013 and 2016 that means Krishi Bank depends on
deposits than the share capital. But Krishi Bank’s investment silently increased in 2017, it is
good for a bank.
29
5.4.5 Earnings Per Share (EPS)
Shows The Earning per share the number of dollars earned on behalf of each outstanding
share of common stock.
EPS= Net Income / No. of Share Outstanding
Year 2013 2014 2015 2016 2017
EPS 2.49 2.35 0.99 2.25 1.98
Earning Per Share

3
2.5
1.5
0.5
0
2013 2014 2015 2016 2017
Interpretation: The firm’s earning per share is mainly of interest to present or eventual
stockholders and administration. In 2013 it was 2.49 and 2014 it was 2.35. In 2015 EPS goes
down to 0.99 which signal to investors that the bank is in trouble which can lead to a decline
in the stock price.To attract the investor Krishi Bank should increase its EPS.
30
Horizontal Analysis
A horizontal analysis is a method of analysis that predicts what will happen to traders in a
future stock. Trend analysis is based on horizontal trends in the overall trends of the market
and the historical indicators about the performance of the stock given by the specified index
in the market.
Rupali Bank Limited

BKB bank
Balance Sheet
As at 31st December 2013-2017
Particular 2013 2014 2015 2016 2017
Cash 100% 134% 122% 111% 115%
In hand (Including foreign currencies) 100% 71% 104% 101% 112%
Balances with Bangladesh bank and sonali bank (Including foreign currencies) 100% 152% 125% 112% 116%
Balance with other banks and financial institution 100% 102% 87% 117% 204%
In Bangladesh 100% 102% 88% 118% 205%
Outside Bangladesh 100% 97% 58% 69% 69%
Money at call and short notice 100% 58% 122% 40% 0%
Investment in shares & securities 100% 174% 121% 97% 86%
Government 100% 195% 113% 91% 71%
Others 100% 115% 160% 115% 127%
Loans and advances/Investment 100% 116% 114% 123% 118%
Loans, cash credits, overdrafts/General Investments 100% 117% 115% 123% 118%
Bills discounted and purchased 100% 85% 76% 80% 78%
Land, building, furniture and fixtures (Including leased assets) 100% 146% 102% 99% 101%
Other assets 100% 97% 93% 109% 116%
Total assets 100% 124% 112% 111% 114%
Borrowings from other banks, financial institutions and agents 100% 175% 113% 90% 266%
Deposits and other accounts 100% 125% 115% 110% 114%
Current /Al-Wadeeah current and other deposit accounts 100% 100% 117% 93% 128%
Savings deposits/Mudaraba Savings Deposits 100% 111% 116% 127% 115%
Mudarabba/ Term and Fixed deposits 100% 132% 114% 107% 113%
Bills payable 100% 85% 127% 130% 116%
Other liabilities 100% 118% 109% 128% 110%
Total liabilities 100% 124% 114% 112% 114%
Shareholders' equity 100% 125% 86% 92% 113%
Total liabilities and shareholders' equity 100% 124% 112% 111% 114%
Horizontal Analysis of BKB

Source: Annual reports of BKB (2013-2017)
From the above table, we can see that cash has increased by 134% in 2014 but after that in
2015 it has been decreased to 122% and it continued in 2016 as the rate was 111% and in
2017 it increased at 115%. This means Bangladesh Krishi Bank could not sale the or they
could not improve the sale year to year. As the most of the time deals with Krishi loan they
should at their best to recover. BKB Bank should decrease their liabilities which were
increased in 2017 than 2016. From 2016 to 2017 total decreased by 5% in current assets may
31
be treated unfavorably. If this decreased in current assets is accompanied by an equivalent
decrease in current liabilities than this increase will be unsatisfactory. The increase in sales
may not increase profits if the cost of production has also gone up.
32
CHAPTER 6: Findings, Recommendations
& Conclusion
33
6.1 Findings
During working at Bangladesh Krishi Bank, it was a new experience for me. After the
collecting and analyzing data I have figured out some findings. These findings are completely
based on my conception. Those are given below-
In 2013, current ratio (1.05:1) was higher than in 2014, 2015, 2016, and 2017. That
means the current ratio has decreased after 2013.
In 2015, quick ratio (1.37:1) was higher than in 2013, 2014, 2016 and 2017. The
quick ratio has decreased after 2015.
In 2014, net working capital was 1490.32cr which was higher than all other year.
Bangladesh Krishi Banks net working capital has a stable situation in the market.
In 2016 net profit margin (18.70%) was higher than in 2013, 2014 and 2015. After
2016 net profit margin (NPM) has decreased.
In 2014, return on asset (-14.05%) was lower than 2013, 2014, 2015 and 2017. Return
on asset (ROA) has decreased in those years because the bank is not making enough
income from the use of its asset.
In 2016, return on equity of BKB was tremendous (10.24%). Comparatively in 2013,
2014, 2015, 2017 BKB’s return on equity was decreasing.
2015 is the year when BKB has got their low EPS in compare to 2013, 2014, 2016,
2017.
BKB’s debt ratios were increasing from 2013 to 2017 that means bank’s dependency
on loan were constantly increasing.
34
6.2 Recommendations
Some Recommendations based on findings for Bangladesh Krishi Bank-
Bangladesh Krishi Bank’s current liabilities is increasing year by year. They

should maintain current liabilities smoothly to pay its current obligations.
Bangladesh Krishi Bank has to be able to meet up the short term financial
liabilities. They should maintain or keep enough liquid assets to pay their short
term current obligations.
Bank authority should keep current liabilities in a stable position.
Bank facing profitability challenges may look at reducing administrative
expenses, such as accounting or human resources staff.
BKB can arrive at a high ROA either by boosting its profit margin or, more
efficiently, by using its assets to increase sales.
The decreasing of Return on Equity (ROE) was a result of decreasing asset
turnover, but also profit margins.
The Bank can improve their Earnings Per Share (EPS) by increasing their earnings
or repurchasing its own stock.
Bank authority should be kept in low dependency on loan.
35
6.3 Conclusion
Commercial banking services to its customers. The Foreign Exchange Department said it is a
well-established statement that the real situation is always different from theoretical
explanations. During the three-month internship program of Bangladesh Agricultural Bank's
Khamarbari branch, almost all the tables were seen. I deviated from the theory of practice,
although at least three months is not enough, to find out all the discrimination between theory
and practice. Some notable observations in all the experiences are:Officials are most eager to
help in spite of the modest, friendly nature and pressure of forced work. Employees were
eager to know about the BBA program.A public commercial bank is trying to expand their
service to personal service. There was a very active environment left in the Bangladesh
Agricultural Bank. At the time of the internship, it is found that the Khamarbari branch
provides all kinds of services for the delivery of all services related to international trade and
remittance. Common banking cash receipts and payments involved, clearing checks, local
remittances etc.Foreign exchange and Credit Department of Bangladesh Krishi Bank, which
helps me a lot as a professional banker in the future.A conclusion can be drawn beyond the
above discussion, as the current customer dealing system is very good at this moment. The
computerized transaction system makes it effective and effective.
6.4 Reference
http://www.krishibank.org.bd/
https://en.wikipedia.org/wiki/Bangladesh_Krishi_Bank
36

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Internship Report On

“Financial Performance Analysis of Bangladesh

“Financial Performance Analysis of Bangladesh Krishi Bank (BKB)”

Abid Hossan Ayan

Bachelor of Business Administration

Daffodil International University

Department of Business Administration

Faculty of Business & Entrepreneurship

Daffodil International University

Department of Business Administration

Faculty of Business &Entrepreneurship

Daffodil International University

Subject: Submission of Internship Report.

With pleasure, I am submitting my internship report of “Financial Performance Analysis of

I hope that the report will meet your expectations.

Abid Hossan Ayan

Department of Business Administration

Daffodil International University

I am pleased to attest that the Internship Report on “Financial Performance Analysis of

I wish him all victory in life.

Department of Business Administration

Daffodil International University

Chapter 1: Introduction .............................................................................................................. 1

Chapter 2: Overview of Bangladesh Krishi Bank...................................................................... 5

Chapter 3: Analysis of activities of Bangladesh Krishi Bank.................................................. 10

Chapter 4: Analyzing The Lending Process of BKB ............................................................... 14

CHAPTER 6: Findings, Recommendations & Conclusion ..................................................... 33

The internship program is an essential part of the Bachelor of Business Administration

1.2 Origin of the study

1.3 Background of the study

1.4 Scope of the study

1.5 Objectives of the study

To analyze the activities of Bangladesh Krishi Bank.

1.6Methodology of the study

This report is based on the secondary data source.

1.6.2 Data Collection Procedure

Name of the Bank : Bangladesh Krishi Bank

2.3.1 Mission of BKB

2.3.2 Vision of BKB

Be the most careful, customer friendly and service government bank.

2.3.3 Strategic Objectives of BKB

2.4 Products and Services of Bangladesh Krishi Bank:

Letter of Credit (LC)

3.2 Lending Financing

In order to achieve self-sufficiency of food through agricultural development, BKB plans to

3.2 Other lending activities of BKB Bank

Crop, Fisheries, Livestock, Agricultural Equipment, Crop Stocking and

To create employment opportunities through income generating activities.

4.1.1 Beef fattening Joint Program

4.1.2 Banks have been implementing Soniuwarva

This program is a replication of Rural Women Employment Creation Project

4.1.5 Special Micro Credit Program for the Disabled

4.1.6 Manipuri Small Business Credit Program

4.1.8 Tree Plantation Program

4.1.9 Establishment of breeding farms of Black Bengal goat program

4.1.10 Poverty Reduction through Production and Improvement of Sheep

5.1.1 Current Ratio

Year 2013 2014 2015 2016 2017

Year 2013 2014 2015 2016 2017