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1. A presentation
on
Financial performance evaluation
and home loan policy of NRBC bank
limited
1

2. Sequence of my presentation
Introductory part
Organizational part
Topic part
Actual task part
Financial performance Evaluation part
2
Research part & Conclusion

3. Introductory part
3

4. Research Aims
4

5. Research Objectives
Broad
Specific
The main objective of the report is to find out
“Financial performance evaluation and home
loan policy of NRBC bank , Mawna branch.”
• To evaluate the financial performance of
NRB Commercial Bank LTD.
• Comparative performance analysis to
NRBC bank ratio with other two bank.
• Discuss the home loan policy of NRBC
bank limited, Mawna Branch.
5

6. Organizational Part
6

7. Corporate information
Name of the Company NRB Commercial Bank Limited
Registered Office Red Crescent Jashim Trade Centre14, Motijheel
Legal Form Public Limited Company
Date of Incorporation February 20, 2013
Formal Inauguration April 2, 2013
Core Banking Segment Conventional Banking
Rating Agency Credit Rating Information and Service
Authorized Capital Tk. 10,000 Million
Paid-up Capital Tk. 4,900.00 Million
Reserves Tk. 737.95 Million
Total Assets Tk. 57,529.35 Million 7

8. Mission and Vision
8

9. Porter’s Five Forces
9

10. SWOT analysis
10

11. SWOT analysis
11
Strengths:
• Strong employee bonding and
belongingness
• Enthusiastic workforce
• Sophisticated automated system
• Network of Branches
Weaknesses:
• Absence of strong marketing
activities
• High charges of Fund Transfer
• Discouraging small entrepreneurs
Opportunities:
• Acquisition
• Country wide network
• Experienced Managers
• Huge Population
Threats:
• Upcoming Banks
• Similar products are offered by
other banks
• Fluctuating Exchange Rates
• Industrial downward trend due to
inflation and unemployment

12. Topic part
12

13. Financial performance
Financial performance is a subjective measure of how well a firm can
use assets from its primary mode of business and generate revenues.
This term is also used as a general measure of a firm's overall financial
health over a given period of time and can be used to compare similar
firms across the same industry or to compare industries
or sectors in aggregation.
13

14. Ratio analysis
Ratio analysis is a diagnostic tool that helps to identify problem areas
and opportunities within a company. Ratio analysis is very important
for every business, because by calculating ratio analysis we can
understand the business position, business strength and weakness. By
knowing this information, management can takes its necessary steps to
organize their goal.
14

15. Financial Ratio of NRBC Bank Limited
• Return on Asset =
𝐍𝐞𝐭 𝐈𝐧𝐨𝐦𝐞 𝐚𝐟𝐭𝐞𝐫 𝐭𝐚𝐱
𝐭𝐨𝐭𝐚𝐥 𝐚𝐬𝐬𝐞𝐭
• Return on Equity =
𝐍𝐞𝐭 𝐢𝐧𝐜𝐨𝐦𝐞 𝐚𝐟𝐭𝐞𝐫 𝐭𝐚𝐱
𝐭𝐨𝐭𝐚𝐥 𝐞𝐪𝐮𝐢𝐭𝐲
• Net Profit Margin =
𝐍𝐞𝐭 𝐩𝐫𝐨𝐟𝐢𝐭 𝐚𝐟𝐭𝐞𝐫 𝐭𝐚𝐱
𝐑𝐞𝐯𝐞𝐧𝐮𝐞
• Debt-Equity Ratio =
𝐓𝐨𝐭𝐚𝐥 𝐋𝐢𝐚𝐛𝐚𝐥𝐢𝐭𝐢𝐞𝐬
𝐓𝐨𝐭𝐚𝐥 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬 𝐄𝐪𝐮𝐢𝐭𝐲
• Net Interest Margin =
𝐍𝐞𝐭 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐈𝐧𝐜𝐨𝐦𝐞
𝐓𝐨𝐭𝐚𝐥 𝐚𝐬𝐬𝐞𝐭
• Equity Multiplier=
𝐓𝐨𝐭𝐚𝐥 𝐚𝐬𝐬𝐞𝐭
𝐓𝐨𝐭𝐚𝐥 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫’𝐬 𝐞𝐪𝐮𝐢𝐭𝐲
• Interest Coverage Ratio =
𝐄𝐁𝐈𝐓
𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐄𝐱𝐩𝐞𝐧𝐬𝐞
• Current Ratio =
𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐀𝐬𝐬𝐞𝐭
𝐭𝐨𝐭𝐚𝐥 𝐚𝐬𝐬𝐞𝐭
15

16. • Return on Asset of NRBC Bank Limited
16
2013 2014 2015 2016 2017
Return on Asset 0.28% 0.46% 1.83% 1.93% 1.67%
0.28%
0.46%
1.83% 1.93%
1.67%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
Return on Asset
• Return on Equity of NRBC Bank Limited
0.51%
1.75%
11.55%
15.97%
15.30%2013 2014 2015 2016 2017
Return on Asset

17. • Net Profit Margin of NRBC Bank Limited
17
3.71% 3.24%
11.92%
14.78% 13.92%
0.00%
5.00%
10.00%
15.00%
20.00%
2013 2014 2015 2016 2017
Net Profit Margin
Net Profit Margin
• Debt-Equity Ratio of NRBC Bank Limited
85.61%
22.61%
18.37%
11.96%
12.54%
2013 2014 2015 2016 2017
DEBT EQUITY RATIO

18. • Net Interest Margin of NRBC Bank Limited
18
3.28%
0.36% 0.21%
0.64% 0.79%
0.00%
1.00%
2.00%
3.00%
4.00%
2013 2014 2015 2016 2017
Net Profit Margin
Net Profit Margin
• Equity Multiplier of NRBC Bank Limited
2013 2014 2015 2016 2017
Equity Multiplier 1.83 3.83 6.3 8.26 8.97
1.83
3.83
6.3
8.26
8.97
Equity Multiplier

19. NRBC Home Loan
NRBC Offers wide range of Home loan facilities covering
• Financing against purchase of completed/under construction
apartments
• Financing against owned home construction, extension, decoration,
renovation etc.
• Financing against transfer of existing home loan balance to NRBC
Bank
19

20. Features of Home Loan
• Financing Amount
• Application Criteria
• Income Criteria
• Financing Period
20

21. Eligibility of Home Loan
Loan offered to diversified professionals including salaried individuals,
business persons, practitioners and Landlords.
• Salaried
• Business person
• Landlords
21

22. Required Documents
Common for all segments
• Signed application form
• Photocopy of valid photo id (NID/Passport)
• Passport sized recent photograph
• Photocopy of Latest TIN certificate
• Copy of Utility Bill of Residence Address
• Sanction letter(s) of all other loan(s) (If any)
• Ownership documents of the property
• Letter of allotment
• Price/renovation quotation
22

23. Actual Task Part
23

24. Internship Experience
I joined on 10th January 2019 in NRBC Bank Limited to work for three
months as an interne (10th January - 10th April 2018). As an intern, I did
some specific tasks which I had to do under the several departments.
24

25. Main job responsibility
• Opening Bank Accounts, Required papers and Observation
• Writing cheque requisition paper
• leant how to Input new customer Data by an officer
• Customer service
25

26. Secondary Learning
• Organizational culture.
• Customer service.
• Maintain a environment in challenging situation.
• Time management for work and daily activity.
• Communication development
26

27. Primary Learning
As an intern in the NRBC Bank Limited, Mawna Branch there
are a number of activities in which I was involved practically.
The activities are given below:
• Individual savings account
• Fixed Deposit
• Money Maker Scheme-RMG Workers
• Lakhpoti Savings Scheme
27

28. Encashment Rule
• Before 6 months: Principal will be given back. Interest will not be
allowed.
• On or after 6 months but before 3 years: Principal plus benefit for
completed month only at the lowest prevailing rate of savings
account.
• Between two tenors: Contract value for the completed tenor as per
schedule. For remaining period, benefit will be given for completed
month only at the lowest prevailing rate of savings account, for both
completed tenor value and subsequent deposited installment.
28

29. Closing of an Account
The following circumstances are usually considered in case of closing an
account :
• Justifying the stoppage of the operation of an account-
• Notice given by the customer himself or if the customer is desirous to
close the account
• Death of the customer
• Customer’s insanity and insolvency
• If the branch finds that the account is inoperative for a long period
29

30. 30
Financial performance Evaluation Part

31. Financial analysis
Financial analysis is structural and logical way to present overall
financial performance of a financial institution. It’s also help to evaluate
and decision making for business operation. In financial analysis
process ratio analysis is the most dominant and logical structure to help
business related stakeholder. Under the financial ratio analysis process
there are few categories to identical area of financial institution. So
business stakeholders try to concentrate to get overall business
overview from profitability, liquidity, assets management and solvency
ratio analysis.
31

32. Research Questions
Above discussion has emanated various questions regarding the
concept and how this method has impacted the financial performance
of NRBC bank. These questions are discussed below:
32

33. (RQ: I) what is current performance of NRBC Bank compared to DHAKA bank and ONE bank with
the current ratio?
Current Ratio = Current Assets / Current Liabilities
33
2013 2014 2015 2016 2017
NRBC BANK 2.56 1.72 1.56 1.43 1.33
ONE BANK 2.32 2.44 2.5 2.65 3.1
DHAKA BANK 1.08 1.08 1.08 1.07 1.07
2.56
1.72
1.56
1.43
1.33
2.32
2.44
2.5
2.65
3.1
1.08
1.08
1.08
1.07
1.07
CURRENT RATIO
NRBC BANK ONE BANK DHAKA BANK

34. (RQ: II) What is current performance of NRBC Bank compared to DHAKA bank and ONE
bank with the return on asset ratio?
Return on asset = Net Income / Total Assets
34
2013 2014 2015 2016 2017
NRBC BANK 0.23% 0.46% 1.83% 1.93% 1.67%
One Bank 1.43% 1.87% 1.39% 1.20% 1.05%
Dhaka Bank 1.39% 1.34% 0.86% 0.77% 0.69%
0.23%
0.46%
1.83%
1.93%
1.67%
1.43%
1.87%
1.39%
1.20%
1.05%
1.39%
1.34%
0.86%
0.77%
0.69%
RETURN ON ASSET(ROA)
NRBC BANK One Bank Dhaka Bank

35. (RQ: III) What is current performance of NRBC Bank
compared to DHAKA bank and ONE bank with the return on
equity ratio?
Return on equity =Net Income /Shareholder Equity
35
2013 2014 2015 2016 2017
NRBC BANK 0.51% 1.75% 11.55% 15.97% 15.30%
One Bank 15.72% 20.49% 16.59% 15.95% 15.45%
Dhaka Bank 16.21% 15.92% 10.74% 10.15% 9.21%
0.51%
1.75%
11.55%
15.97%
15.30%
15.72%
20.49%
16.59%
15.95%
15.45%
16.21%
15.92%
10.74%
10.15%
9.21%
RETURN ON EQUITY(ROE)
NRBC BANK One Bank Dhaka Bank

36. (RQ: IV) What is current performance of NRBC Bank compared to DHAKA bank and ONE bank
with the net interest margin ratio?
Net Interest Margin = Net Interest Income / Total Assets
36
2013 2014 2015 2016 2017
NRBC BANK 3.28% 0.36% 0.21% 0.64% 0.79%
One Bank 2.66% 3.55% 2.95% 2.30% 0.21%
Dhaka Bank 2.66% 4.44% 4.02% 4.58% 3.90%
3.28%
0.36%
0.21%
0.64%
0.79%
2.66%
3.55%
2.95%
2.30%
0.21%
2.66%
4.44%
4.02%
4.58%
3.90%
NET INTEREST MARGIN(NIM)
NRBC BANK One Bank Dhaka Bank

37. (RQ: V) What is current performance of NRBC Bank compared to
DHAKA bank and ONE bank with the debt equity Ratio?
Debt equity ratio =Total liabilities / shareholder equity
37
2013 2014 2015 2016 2017
NRBC BANK 85.61% 22.61% 18.37% 11.96% 12.24%
One Bank 5.15% 4.86% 5.30% 5.48% 5.17%
Dhaka Bank 11.14% 11.45% 12.17% 12.99% 14.05%
85.61%
22.61%
18.37%
11.96%
12.24%
5.15%
4.86%
5.30%
5.48%
5.17%
11.14%
11.45%
12.17%
12.99%
14.05%
DEBT EQUITY RATIO
NRBC BANK One Bank Dhaka Bank

38. Overall Performance
The overall performance according to star claim of NRBC bank, ONE bank and DHAKA bank are
given below:
38

39. 39
Research Part

40. Problem statement
A survey on why NRB commercial Bank, Mawna branch is not being
able to attain its target on home Loan and how to overcome these
problems.
40

41. Research Methodology
• Research Approach
• Research Philosophy
• Types of research
• Method of data collection
41

42. Data Collection method
• Primary data
 Primary data has been gathered by taking personal interview of organization’s Supervisor.
 Other necessary documents that have been collected from Bank.
• Secondary data
• Official website of NRB commercial bank.
• Related journal article from the internet.
• Annual report of NRBC.
• Bangladesh bank website as well as related different other websites.
42

43. Population and sampling methods
• Total Population
• Sampling Technique
• Sample Size
• Contact Method
43

44. Data analysis and interpretation
• Z test has been done by using MS Excel. There also have used statistical tools to test hypothesis. Then MS
Word and MS Excel, different graphs and tables have used to analyze data. Hypotheses have tested to derive a
meaningful conclusion from the practical data. I have used z-test for the study because of sample size is more
than 30. Based on my analysis I have tried to give findings, recommendations and conclusion.
• Hypotheses were testing to derive a meaningful conclusion from the empirical data. In addition,
basic statistical techniques of different measures of central tendency have been used for analyzing
the data. As my sample size is 40, I have used Z test for the study. X
Hypothesis scale
• In order to analyze the data a 5 point Likert scale has been used. 5 stands for Strongly Agree, 4 stands for only
agreed, 3 stands for the neutral, 2 stands for disagree, and 1 stands for strongly disagree.
44
Hypothesis Test: Z test

45. 45
Hypotheses development

46. Hypotheses testing
46

47. Graphical Representation
Hypothesis 1:
HO: NRB Commercial Bank should not reduce their Home loan interest rate comparatively lower than other commercial
banks.
HA: NRB Commercial Bank should reduce their Home loan interest rate comparatively lower than other commercial banks.
47

48. 48
10%
9%
13%
60%
10%
H1
Strongly Disagree
Disagree
Neither disagree nor agree
Agree
Strongly Agree
At 95% confidence level it has been observed that the tabulated value of Z0.05 = 1.645 and the calculated value of
Z cal = 3.89 which is not within the acceptable region so the Null hypothesis is rejected. And at 5% level of
significance, it can be said that, NRB Commercial Bank should reduce their Home loan interest rate
comparatively lower than other commercial banks.
And hypothesis 2,3,4,5 tabulated value (1.645) is less than the calculated value. So every where Null hypothesis is rejected. As
a result following level of significance ,it can be said that alternative hypothesis is accepted.

49. Recommendation
• Employees are needed to give adequate training to work and handle clients
under pressure. In this case both the branch authorities and higher
authorities can persuade each other to train the employees.
• NRBCB should increase more Consumer Banking activity. Their Consumer
banking activity is quite satisfactory but it will be better if they can put
attention on individual customer.
• They should invent other type of deposit to attract more customers which is
different from other banks.
• NRBCB should maintain more cash and deposit balances with other banks.
Because it is desirable that banks keep their cash and balance with other
bank to such extent so that it can minimize the chance of liquidity crunch.
• Should develop more strategic planning as to compete with its rival banks.
49

50. Conclusion
Since the banking service especially the private Banks are doing an outstanding business, so it is
clear that the modern people are more concerned about securing their valuable assets and get
high-quality and timely services. For this reason lot of new commercial bank has been
established in last few years and these banks have made this banking sector very competitive.
So, now banks have to organize their operation and do their operations according to the need of
the market. Banking sectors no more depends on a traditional method of banking. In this
competitive world this sector has trenched its wings wide enough to cover any kind of financial
services anywhere in this world. The major task for banks, to survive in this competitive
environment is by managing its assets and liabilities in an efficient way. NRB Commercial Bank
is the most promising bank in Bangladesh. Every day NRB Commercial Bank endeavor to
increase their product and services although they provide a wide range of product of services to
their customers. NRB Commercial Bank is helping the economy of Bangladesh by remitting of
funds both local and foreign. For helping the people the bank provides bridge financing loan,
working capital loan to its corporate clients. As modern function NRB Commercial Bank
provides credit card facility, ATM card facility and any branch banking facility to its customers.50