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Term PaperOn

Analyzing the Performance ofJamuna Bank Ltd.

Compared to Pubali Bank Ltd. (Competitor)

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Term Paper on Analyzing the Performance ofJamuna Bank Ltd.

Compared to Pubali Bank Ltd. (Competitor)

Prepared for: Sayba Kamal Athoi,

Course Instructor, Fin - 254

School of Business, North South University.

Prepared by: Arifur Rahman 083053030 11

Date of Submission: August 31th, 2013

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Table of Contents

Executive Summary…………………………………………………………….. IV

Introduction………………………………………………………………… 1

Origin of the Report ……………………………………………………….. 2

Objectives……………………………………..……………………………. 2

Methodology……………………………………………………………….. 3

Limitations………………………………………………………………….. 4

Overview of the Banks……………………………………………………… 5-7

Literature Review…………………………………………………………… 8-15

Performance Analysis………………………………………………………. 16

Liquidity Position…………………… 17-21

Leverage Position…………………… 22-24

Efficiency……………………………. 25-30

Profitability………………………….. 31-38

Market Position……………………… 39-42

Bank’s share price and its performance…………………………………….. 44

Suggestions………………………………………………………………... 45

Recommendation ………………………………………... 46

Conclusion………………………………………………………………… 47

Bibliography……………………………………………………………...... 48

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Appendix…………………………………………………………………… 49

Executive Summary

The objective of my term paper report was to collect data from the financial reports of

Jamuna Bank Limited and Pubali Bank limited, in order to evaluate their management’s

effectiveness, in the intention to clearly indicate which company’s stock is more preferable.

Thus, to factually make the interpretation, the data was collected from the company’s annual

reports of 2010-2011.

Then the report discusses the limitations of the report. After this discussion it moves on to

giving an overview of both the banks after which I have discussed the literature review of the

ratios that I have used to evaluate the performance of the banks. Then I have shown the

analysis of the two banks using the ratios.

Analysis indicated …

1. Liquidity Position:

Currently, Jamuna Bank Limited is in a better liquidity position than Pubali Bank. But

liquidity position of Jamuna bank is gradually falling from 2010 to 2011.

In future, Jamuna Bank might regain their previous position.

2. Leverage Position:

Currently, leverage position of Jamuna Bank Ltd and Pubali Bank is quite similar.

Future expected earnings are higher for Pubali Bank.

3. Efficiency:

Currently, IFIC is showing better efficiency than Trust Bank although Employee

productivity and Expense Control Efficiency is higher for Trust Bank Limited.

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In future, Trust Bank might have the upper-hand.

4. Profitability:

Currently, Pubali Bank Ltd. is in a superior profitability position than Jamuna Bank

Ltd.

In future, there are some chances that Jamuna Bank might change the scenario.

5. Market Position:

At present Pubali Bank is in better position than Jamuna Bank Ltd.

In Summary, Most of the performance related ratios favors Pubali Bank. But in future

Jamunat Bank may change the scenario. From an investor’s perspective share of Pubali Bank

is more favorable than the stock of Jamuna Bank Ltd.