TERM PAPER

ON
RATIO ANALYSIS OF STANDARD BANK LTD.

Submitted To:

Prof. Md. Zaker Hosain Bhuian

Associate Professor
Department of Accounting
Tejgaon College, Dhaka

Submitted By:

Moni Margaret De Crush

BBA (Hon’s) 2nd year
Roll No: 9594099
Reg. No: 1632214
Session: 2009-2010
Department of Accounting
Tejgaon College, Dhaka

Date of Submission: 13th April, 2013

 A TERM PAPER
ON

FINANCIAL RATIO ANALYSIS

 Letter of Transmittal

Date:
Prof. Md. Zaker Hosain Bhuian
Associate Professor
Department of Accounting
Tejgaon College, Dhaka

Sub: Submission of Term Paper.

Dear Sir,

I am pleased to submit the report on “Ratio Analysis-A case study of

STANDARD BANK LTD.” which is prepared as a part of my PGDFM
course according to your suggestion and guidance.

I collected data and finally analyze the information to have this report to
place before you for kind approval. I hope that my report will satisfy
you and be approved by the examination committee.

Thanking you,

Sincerely yours,

Moni Margaret De Crush

BBA (Hon’s) 2nd year
Roll No: 9594099
Reg. No: 1632214
Session: 2009-2010
Department of Accounting
Tejgaon College, Dhaka
 STUDENT DECLARATION

I declare that the Term paper on “Financial Ratio Analysis-A case study of STANDARD
BANK LTD..” embodies the results of my own research works, pursued under the
arrangement of Bionic Seafood Exports Ltd.”.

I further affirm that the work reported in this thesis is original and no part or whole of the
term paper has been submitted to, any other university or institution for any degree or award
or any other purpose.

Moni Margaret De Crush

BBA (Hon’s) 2nd year
Roll No: 9594099
Reg. No: 1632214
Session: 2009-2010
Department of Accounting
Tejgaon College, Dhaka
 SUPERVISOR’S DECLARATION

This is to certify that the thesis term paper on “Ratio Analysis-A case study of STANDARD
BANK LTD.” submitted for the award of the degree of BBA (Hon’s) from National
University, Bangladesh, is a record of term paper carried out by Moni Margaret De
Crushmy supervision. No part of the term paper has been submitted for any degree,
diploma, title or recognition before.

He is permitted to submit the term paper.

……………………….................

Prof. Md. Zaker Hosain Bhuian

Associate Professor
Department of Accounting
Tejgaon College, Dhaka
 ACKNOWLEDGEMENT

At first, I do express my wholehearted gratitude to almighty Allah

for bringing out the report.
I like to express my indebtedness & gratefulness to my honorable
teacher Prof. Md. Zaker Hosain Bhuian Associate Professor, Dept. of
Accounting, for her invaluable guidance, co-operation and advice. I
would also like to express my sincere gratitude to my respected teachers
of this course whose teaching helped me a lot in this regard.

I am highly grateful to Mr. Kamruzzaman of STANDARD

BANK LTD.”. for his kind co- operation & assistance in supplying the
various data. I also like to thank my classmates for giving me their
assistance in all respect.

Thanks to all.

Moni Margaret De Crush

BBA (Hon’s) 2nd year
Roll No: 9594099
Reg. No: 1632214
Session: 2009-2010
Department of Accounting
Tejgaon College, Dhaka
 EXECUTIVE SUMMARY

Classroom discussion alone cannot make a student perfect in handling the real business
situation. For this reason practical exposure to real business world is very important, so that
the students of BBA (Hon’s) program can prepare them for banking jobs in future and can
reflect their theoretical learning.
The banking sector particularly the private commercial banks (PCBs) have been playing a
vital role in the economy of Bangladesh by diversifying the asset portfolio to Retail, SME
and Capital Market. Amongst the financial institutions, commercial banks constitute the
heart of the financial structure since they have the ability to add the money supply and thus
create additional purchasing power. Now the bank is focusing on attracting valued
customers, retaining them and always furthering the banker customer relationship in the
markets through professional customer service excellence.
Standard Bank Limited witnessed a considerable improvement in its overall business
performance during the year 2008 and achieved satisfactory and sustainable progress.
Management’s strategic decisions have resulted in increased EPS. The bank has earned
110.95% growth in gross profit by earning TK.154.00 crore. SBL has been able to collect
deposit of 2925.00 crore by increasing 53.94% growth over the previous year. The bank has
disbursed tk.2719.00 crore as loans and advances in different industrial units. The classified
loan of the bank stood at only 1.87% during the reporting year. Besides, the paid up capital
of the bank has been increased to tk.220.00 crore posting 18.63% growth of the previous
year.
Major ratio indicators of Standard Bank Limited resulted at figures like ROE 21.22%, ROA
2.06%, NIM 3.72%, operating margin 5.11%, provision for loan loss ratio 4.57%, etc. All
the productivity ratios showed better performance in the last 3 years.

The strengths of the bank are its reputation, diversified business, operational performance,
experienced board of directors, skilled manpower, corporate governance, branch network,
corporate social responsibility, risk management system, credit rating of the bank, true
online banking system, environmental policy and different service etc.

The weaknesses of Standard Bank Limited are limited geographic coverage, inadequate
training facility, limited research & development facility, insufficient ATM service, absence
of card facilities, difficulties in choosing priority sector, inadequate use of advanced
technology, lack of diversity in terms of regional investment, quality of customer service
etc.
The opportunities of Standard Bank Limited could be covering more and more geographical
coverage, expanding business in rural areas, adopting more and more technological
development, offering new and innovative product and service.

The threats of Standard Bank Limited are entry of new commercial banks, leasing
companies and merchant bank, new innovative products and services offered by
competitors, availability of information, increased bargaining power of the customer,
restrictions imposed on the interest rate and lending rate, fund flow, investment in
government priority sectors, absence of adequate financial instruments for borrowing at the
time liquidity crisis, etc.

Finally, analyzing the strengths, weaknesses, opportunities and threats some suggestions
have been made which the bank may undertake for improving their productivity, efficiency
and competitiveness even more.
 Table of Content

SL. NO DESCRIPTION PAGE NOM

Chapter One
1.0 Introduction 1
1.1 Background of the Study 1
1.2 Objective of the Study 2
1.3 Significances of the Study 3
1.4 Methodology 3
1.5 Limitation of the Study 4
Background of the Study

Chapter Two
2.0 Conceptual Issue 6-10

Chapter Three
3.0 Data Base 12-21

Chapter Four
4.0 Finding of the Report 23-35

Chapter FIVE
5.0 Recommendation & Conclusion 37