1.1.

INTRODUCTION:
As a fully operational Commercial Bank, National Bank Limited started its operation
with a vision to be the market leader through providing financial supports to corporate
and small entrepreneurs as well as individuals all over the Bangladesh.
National Bank began its operations with a mind to provide formal banking services to all
levels of people in the urban, semi-urban and rural spectrum, and through the nearly !
branches across the country, the Bank has seen that goal a long way through " providing
Bangladesh with a degree of service and professionalism that
the traditionally underserved class could ever dream of. #he Bank operates under a
$double bottom line% agenda where profit and social responsibility go hand in hand as it
strives towards a poverty-free, enlightened Bangladesh.
1.1 Origin of the Report&
As a mandatory part of the BBA program, all the students of 'epartment of Business
Administration, (niversity of 'haka, have to undergo a three-month long internship
program to gain some practical e)posure about corporate world. (pon the completion of
this program, the students have to submit an internship report, which reflects their
knowledge as well as activities during the program. *n relation to that * was assigned to
prepare a report on $A Case Study of National Ban !i"ited. #he topic of the report
was assigned by the faculty supervisor and accepted by the host organi+ation as par
necessity to fulfill the internship re,uirement.
*n this regard, * have worked as a report analysis in National Bank Ltd -NBL., /n the
basis of working e)perience in this period and * have tried my level best to relate the
theoretical knowledge with the practical work situation

1.# O$%e&ti'es of the Study&

(ri"ary o$%e&ti'e:
#he primary ob0ective of this report is to fulfill the re,uirement of BBA program contains
NBL report analysis. 1or this reason * had to be attached with an /rgani+ations different
department, my working station fulfill the re,uirement to achieve the Bachelor degree. *
have gained some practical e)periences along with all academic knowledge2 here my
main focus is understood about corporate life 3 culture, professionalism and punctuality.
1.). *ethodology of the Study:

4ssential data sources both primary and secondary were used to complete the pro0ect.
(ri"ary Sour&es:
5rimary data are collected through two ways. #hey are-
+uestionnaire, Inter'ie-: 6ome primary data are collected by taking interview of the
employees of NBL and of some clients.
a. $. O$ser'ation: 7ere primary data are collected through spending three months
in the NBL during the working hour. 7ere * observe the total banking process
of NBL.

The other sour&es are/
8 #eachers of our department
8 *nterview with the e)ecutives and officers of NBL

Se&ondary sour&es:
8 Annual 9eport of National Bank Limited
8 /perational manual of 6:4 banking of National Bank Limited.
!
o 8 'ifferent website materials.
8 /fficial files
8 9elevant Books, newspapers and 0ournals and published
documents

Data Analysis Te&hni0ue:
; #ables
; 1igures
; 6</# Analysis
; 9atio Analysis
; #rend Analysis
; #ime series Analysis
; 9egression Analysis
1.1 !i"itation2s of the Study:
As the officers were very busy with their daily work, they could provide very
little time.
Limitation of time was one of the most important factors that shortened the
present study. 'ue to time limitation many aspect could not be discussed in the
present study.
9ush hours and business was another reason that acts as an obstacle while
gathering data.
=
Confidentiality of data was another important barrier that was faced during the
conduct of this study. 4very organi+ation has their own secrecy that is not
revealed to others.
6ufficient books, publications and figures were not available. *f these limitations
were not been there, the report would have been more useful.
*t was very difficult to collect data from such a big organi+ation. * have collected
information from my branch, but for better interpretation * had to collect some
information from the head office


>
Chapter- Two
Chapter& =
#heoretical Aspects
?
9atio analysis is a method of analy+ing data to determine the overall financial strength of
a business. 1inancial analysts take the information off the balance sheets and income
statements of a business and calculate ratios that can then be used to make assessments of
the operating ability and future prospects of that business. #hese ratios are useful only
when compared to other ratios, such as the comparable ratios of similar businesses or the
historical trend of a single business over several business cycles. #here are various ratios
that measure a company@s efficiency, short-term strength, profitability, and solvency.
Balance sheet ratio analysis is useful in determining the solvency of a business and the
amount of reliance it has on its creditors. 6pecific ratios included in this group are current
ratio, which measures financial strength by dividing a company@s assets by its liabilities,
and ,uick ratio, which takes the essence of the current ratio but e)cludes inventory. By
focusing on the li,uid assets of a business, a ,uick ratio can measure its strength even in a
worst-case scenario whereby all of its funding was suddenly removed.
*n contrast, income statement analysis is more concerned with the profitability of a
business. Among this type of ratio analysis, gross margin ratio measures the profit from
sales available to pay overhead, while net profit margin ratio is an indicator on the
company@s financial return on sales. 9atios known as management ratios can also be
calculated from balance sheet information. #hese ratios measure efficiency in terms of
collecting accounts receivable and managing inventory, the ability to turn assets into
profit, and how much of a return the owners of the business are getting on their
investment.
When it comes to investing, analyzing financial statement information (also known as quantitative
analysis), is one of, if not the most important element in the fundamental analysis process. At the
same time, the massive amount of numbers in a companys financial statements can be
bewildering and intimidating to many investors. !owever, through financial ratio analysis, you will
be able to work with these numbers in an organized fashion.
"he ob#ective of this tutorial is to provide you with a guide to sources of financial statement data,
to highlight and define the most relevant ratios, to show you how to compute them and to e$plain
their meaning as investment evaluators.
*n analy+ing 1inancial 6tatements for the purpose of granting credit 9atios can be
broadly classified into three categories.
Li,uidity 9atios
4fficiency 9atios
5rofitability 9atios
A
!i0uidity Ratios:
Li,uidity 9atios are ratios that come off the the Balance 6heet and hence measure the
li,uidity of the company as on a particular day i.e the day that the Balance 6heet was
prepared. #hese ratios are important in measuring the ability of a company to meet both
its short term and long term obligations.
FIRST LIQUIDITY RATIO
Current Ratio& #his ratio is obtained by dividing the @#otal Current Assets@ of a company
by its @#otal Current Liabilities@. #he ratio is regarded as a test of li,uidity for a company.
*t e)presses the @working capital@ relationship of current assets available to meet the
company@s current obligations.
The formula:
Current 9atio B #otal Current AssetsC #otal Current Liabilities
LIQUIDITY RATIO
+ui& Ratio& #his ratio is obtained by dividing the @#otal Duick Assets@ of a company by
its @#otal Current Liabilities@. 6ometimes a company could be carrying heavy inventory as
part of its current assets, which might be obsolete or slow moving. #hus eliminating
inventory from current assets and then doing the li,uidity test is measured by this ratio.
#he ratio is regarded as an acid test of li,uidity for a company. *t e)presses the true
@working capital@ relationship of its cash, accounts receivables, prepaids and notes
receivables available to meet the company@s current obligations.
The formula:
Duick 9atio B #otal Duick AssetsC #otal Current Liabilities
Duick Assets B #otal Current Assets -minus. *nventory
LIQUIDITY RATIO
De$t to 30uity Ratio& #his ratio is obtained by dividing the @#otal Liability or 'ebt @ of a
company by its @/wners 4,uity Net <orth@. #he ratio measures how the company is
leveraging its debt against the capital employed by its owners. *f the liabilities e)ceed the
net worth then in that case the creditors have more stake than the shareowners.
The formula:
'ebt to 4,uity 9atio B #otal Liabilities C /wners 4,uity or Net <orth
E
3ffi&ien&y Ratios:
4fficiency ratios are ratios that come off the the Balance 6heet and the *ncome 6tatement
and therefore incorporate one dynamic statement, the income statement and one static
statement , the balance sheet. #hese ratios are important in measuring the efficiency of a
company in either turning their inventory, sales, assets, accounts receivables or payables.
*t also ties into the ability of a company to meet both its short term and long term
obligations. #his is because if they do not get paid on time how will you get paid paid on
time. Fou may have perhaps heard the e)cuse @* will pay you when * get paid@ or @:y
customers have not paid meG@
FIRST EFFICIENCY RATIO
DSO 4Days Sales Outstanding.& #he 'ays 6ales /utstanding ratio shows both the
average time it takes to turn the receivables into cash and the age, in terms of days, of a
company@s accounts receivable. #he ratio is regarded as a test of 4fficiency for a
company. #he effectiveness with which it converts its receivables into cash. #his ratio is
of particular importance to credit and collection associates.
Best (ossi$le DSO yields insight into delin,uencies since it uses only the current portion
of receivables. As a measurement, the closer the regular '6/ is to the Best 5ossible
'6/, the closer the receivables are to the optimal level.
Best 5ossible '6/ re,uires three pieces of information for calculation&
Current 9eceivables
#otal credit sales for the period analy+ed
#he Number of days in the period analy+ed
Formula:
Best 5ossible '6/ B Current 9eceivablesC#otal Credit 6ales H Number of 'ays
The formula:
Regular DSO B -#otal Accounts 9eceivablesC#otal Credit 6ales. ) Number of 'ays in
the period that is being analy+ed
EFFICIENCY RATIO
In'entory Turno'er ratio& #his ratio is obtained by dividing the @#otal 6ales@ of a
company by its @#otal *nventory@. #he ratio is regarded as a test of 4fficiency and
indicates the rapiditity with which the company is able to move its merchandise.
The formula:
*nventory #urnover 9atio B Net 6ales C *nventory
I
*t could also be calculated as&
*nventory #urnover 9atio B Cost of Joods 6old C *nventory
(rofita$ility Ratios:
5rofitability 9atios show how successul a company is in terms of generating returns or
profits on the *nvestment that it has made in the business. *f a business is Li,uid and
4fficient it should also be 5rofitable.
FIRST PROFITIBILITY RATIO
Return on Sales or (rofit *argin 45.& #he 5rofit :argin of a company determines its
ability to withstand competition and adverse conditions like rising costs, falling prices or
declining sales in the future. #he ratio measures the percentage of profits earned per
dollar of sales and thus is a measure of efficiency of the company.
The formula:
9eturn on 6ales or 5rofit :argin B -Net 5rofit C Net 6ales. ) KK
Return on Assets& #he 9eturn on Assets of a company determines its ability to utiti+e the
Assets employed in the company efficiently and effectively to earn a good return. #he
ratio measures the percentage of profits earned per dollar of Asset and thus is a measure
of efficiency of the company in generating profits on its Assets.
The formula:
9eturn on Assets B -Net 5rofit C #otal Assets. ) KK
Return on Assets& #he 9eturn on Assets of a company determines its ability to utiti+e
Return on 30uity or Net 6orth& #he 9eturn on 4,uity of a company measures the
ability of the management of the company to generate ade,uate returns for the capital
invested by the owners of a company. Jenerally a return of KL would be desirable to
provide dividents to owners and have funds for future growth of the company
The formula:
9eturn on 4,uity or Net <orth B -Net 5rofit C Net <orth or /wners 4,uity. ) KK
Net <orth or /wners 4,uity B #otal Assets -minus. #otal Liability
M
Return on Sales or (rofit *argin 45.& #he 5rofit :argin of a company determines its
ability to withstand competition and adverse conditions like rising costs, falling prices or
declining sales in the future. #he ratio measures the percentage of profits earned per
dollar of sales and thus is a measure of efficiency of the company.
The formula:
9eturn on 6ales or 5rofit :argin B -Net 5rofit C Net 6ales. ) KK
Return on Assets& #he 9eturn on Assets of a company determines its ability to utiti+e the
Assets employed in the company efficiently and effectively to earn a good return. #he
ratio measures the percentage of profits earned per dollar of Asset and thus is a measure
of efficiency of the company in generating profits on its Assets.
The formula:
9eturn on Assets B -Net 5rofit C #otal Assets. ) KK
Income Statement
*ncome
*nterest income -gross or netN.& is adversely affected by falling long and short-
term interest rates.

*nterest e)pense
6ubtracted from *nterest *ncome /nly
#he cost of funds the company borrows on a short- and long-term basis, buys
in the money markets, or takes in from depositors. Competition for customer
funding will increase interest e)pense, placing pressure on margins. 6ome banks
and financial services companies will also break out the average annual interest
rate paid on the various sources of funds.
*f interest e)pense is increasing is competition forcing the bank to pay more
for depositsN *s management relying on high cost funds instead of alternative
lower-cost funds to meet the bankOs funding needsN

Net *nterest *ncome
#his is interest income minus interest e)pense.
4ven a small decline in net interest income can result in a large decline in net
income if not offset by a decline in e)penses.
6ee how to determine Net *nterest :argin below.

K
Non-interest *ncome
*t is important that banks developCincrease revenues derived from non-interest
sources -bank services, fees such service charges on deposits, trust income,
mortgage servicing fees, securities processing and brokerage services, results of
trading operations. that have more stable growth rates and are not tied to loan
growth cycles, and can provide an offset if loan growth slows.

/ther *ncome
'ividend income& from third party investment or subsidiaryCaffiliateN
NetCgain loss from securities trading& volatility from year to year.
1oreign e)change& based on customer activity and volatility in the market.
6ale of investments& is it e)ceptionalN
Net commissionCfee income2 based on transactions such as insurance
brokering, stock-broking
9elated party transaction-s.
<atch-out for financial institutions that utili+e Pgain on saleP accounting
which means that the company records the sale of a loan immediately but the
actual profit is received over the life of the loan. #he profit is the difference
between the spread that the loan is sold at to the investor and what the seller
receives from the /bligor. #he problem is that the application of estimated future
interest rates -and default rates. is incorrect and the loans are over-valued
compared to where interest rates may actually be during the life-time of the loan
and whether it will prepay if rates decline, andCor if the loan will default and
become un-collectible.

Non-interest e)pense
5ersonnel costs

As part of the QEIE billion (.6. economic stimulus package passed in 1ebruary
!KKM, there is a stipulation that all banks that receive infusions from the
government@s QEKK billion financial rescue fund must restrict e)ecutive
compensation to those persons earning Q million or more per year in salary may
receive only Q?KK,KKK in additional bonus compensation. #he prohibition does not
apply to bonuses that were negotiated as part of an e)ecutive@s compensation
contract signed prior to 1eb. , !KKM. www.ustreas.govCpressCreleasesCtg?.htm

5remises C branch operating e)penses -rent..
6ystems development costs, merger of networks& as companies must compete
based on the ability to provide state-of-the art trading, retail access and
information service, these costs have risen.
/verseas e)pansion& as the percentage of non-(.6. income rises, this cost
increases as facilities e)pand.

/perating income
After e)penses but before provisions and ta)es and e)traordinary items.

4)traordinary C Non-recurring *tems
:aterial events and transactions that are unusual and infre,uent.
5rofit -gains. or loss on sale of fi)ed assets.

5rovision -for loan losses.
Changing market conditions where the bank operates may result in a
deterioration of loan and lease assets, which may result in actual and anticipated
losses -write-down or write-off of the asset@s value.. #he accumulated loss may
e)ceed the e)isting Loan 9eserve thus earnings may have to added to the Loan
9eserve account to either increase or replenish the amount to meet an acutal or
anticipated loss.

#a)ation
Current ta)ation -ta) payable on recogni+ed income for the fiscal year, which
was paid to federal, state and local, and foreign revenue authorities..
'eferred ta)ation
1ootnotes
Allowance for losses -Loan Loss Account. - is a reserve account that is set aside
by management to cover an estimate of losses -charge-offs. in the loan portfolio.
#he loan loss account has an opening balance at the beginning of the year, it
receives additional provisions based on actual losses and anticipated losses for the
coming year2 has actual charged-off loans subtracted from the account and then
has a closing balance for the year..

Classified Loans - loans that have been determined to be not collectable for the
full amount due to the deteriorating performance andCor condition of the borrower.
#he PclassificationP is based upon internal e)amination and rating system -based
on generally accepted industry practices. such as non-performing accrual, non-
accrual. #he /ffice of the Comptroller of the Currency -/CC. also rates loans are
classified as substandard, doubtful, and loss.
!
Asset Liability Management
*deally, banks want to match the maturity of assets -loans, investments. with the maturity
of liabilities -demand deposits, timed deposits, borrowed funds.. 9elated to the maturity
structure, the interest rate paid on liabilities to borrow the funding must be less than the
interest rate on earned on the assets -interest rate charged to the borrower.. #he failure to
carefully manage this situation can result in asset"liability mismatch, interest rate risk,
li,uidity risk.
CAMELS
#he CA:4L6 approach was developed by bank regulators in the (nited 6tates as a
means of measurement of the financial condition of a financial institution. -(niform
1inancial *nstitutions 9ating 6ystem established by the 1ederal 1inancial *nstitutions
4)amination Council.
#he acronym CA:4L6 stands for&
Capital Ade,uacy
Asset Duality
:anagement
4arnings -5rofitability.
Li,uidity 3 1unding
6ensitivity to :arket 9isk -losses arising from changes in market prices.
CA:4L6 analysis re,uires&
financial statements -the last three years and interim statements for the most
recent !-month period.
cash flow pro0ections
portfolio aging schedules
funding sources
information about the board of directors
operationsCstaffing
macroeconomic information
=
*n reviewing ratios the credit analyst needs to keep ! concepts in mind&
Level or whether the ratio for a given fiscal period is either e,ual to or e)ceeds
-which can be both positive or negative depending on the ratio. the established
parameters of what is considered a generally acceptable position for that specific ratio.
#rend or whether the fiscal to fiscal comparison period indicates that the level of the
ratio is improving or deteriorating. *n addition, individual ratios must not be reviewed in
isolation to other ratios and what is the present strategy of the management of the
financial institution.
Capital Adequacy
Capital Ade,uacy is a measurement of a bank to determine if solvency can be maintained
due to risks that have been incurred as a course of business. Capital allows a financial
institution to grow, establish and maintain both public and regulatory confidence, and
provide a cushion -reserves. to be able to absorb potential loan losses above and beyond
identified problems. A bank must be able to generate capital internally, through earnings
retention, as a test of capital strength. An increase in capital as a result of restatements
due to accounting standard changes is not an actual increase in capital.
#he Capital 7ro-th Rate, which is calculated by subtracting prior-period e,uity capital
from current-period e,uity capital, then dividing the difference by prior-period e,uity
capital, indicates that either earnings are e)tremely good, minimal dividends are being
e)tracted or additional capital funds have been received through the sale of new stock or
a capital infusion, or it can mean that earnings are low or that dividends are e)cessive.
#he capital growth rate generated from earnings must be sufficient to maintain pace with
the asset growth rate.
>
Chapter !
O"ER"IE# OF T$E OR%ANI&ATION
=. 7istorical Background
=.! #ypes of Business
=.= Rision
=.> :ission
=.? 5roducts and 6ervices Nation bank Ltd
=.A #arget customers
=.ENBL-At 5resent

?
Or'an()at(ona* O+er+(ew o, NBL

National Bank Limited is one of the leading private commercial bank having a spread
network of total AE service locations across Bangladesh and plans to open few more
branches to cover the important commercial areas in 'haka, Chittagong, 6ylhet and other
areas in !K=. National Bank Limited has been licensed by the Jovernment of
Bangladesh as a 6cheduled commercial bank in the private sector in pursuance of the
policy of liberali+ation of banking and financial services and facilities in Bangladesh. *n
view of the above, the Bank within a period of !? years of its operation achieved a
remarkable success and met up capital ade,uacy re,uirement of Bangladesh Bank.
National Bank Limited is a customer oriented financial institution. *t remains dedicated to
meet up with the ever growing e)pectations of the customer because at National Bank,
customer is always at the center.
).1. 8istori&al Ba&ground:
National Bank Limited -NBL. is a 5ublic Company Limited by shares in the Country,
with commendable operating performance. 'irected by the mission to provide prompt
and efficient services to clients, NBL provides a wide range of commercial banking
services also. Bank has achieved success among its peer group within a short span of time
with its professional and dedicated team of management having long e)perience,
commendable knowledge and e)pertise in convention with modern banking. <ith all its
resources, the management of the Bank firmly believes that the Bank would be able to
encounter problems that may arise both at micro and macro economic levels.
NBL incorporated in Bangladesh under company Act MM>. *t is also guided by #he Bank
Company Act MM -and its subse,uent amendments. and Bangladesh Bank /rdinance
ME!, so as to enable the company for doing banking business.
A
).#*ission 9 :ision of NB!:
*ission of NB!:
*n line with its vision, NBL has developed a mission statement, which reads as follows
and is self-e)planatory&
a. #o deliver service e)cellence to all the customers, both internal and e)ternal.
b. NBL will constantly challenge its systems, procedures and training to maintain a
cohesive and professional team in order to achieve service e)cellence.
c. #o create an enabling environment and embrace a team based culture where people
will e)cel.
d. #o ma)imi+e shareholderOs value.
).). :ision:
#he vision of NBL is to become $A Bank for 5erformance with 5otential% by
transforming the way they do business and developing a truly uni,ue financial institution
that delivers superior growth and financial performance and be the most recogni+able
brand in the financial service in Bangladesh.
).1. *ission:
*n line with its vision, NBL has developed a mission statement, which reads as follows
and is self-e)planatory&
a. #o deliver service e)cellence to all the customers, both internal and e)ternal.
b. NBL will constantly challenge its systems, procedures and training to maintain a
cohesive and professional team in order to achieve service e)cellence.
c. #o create an enabling environment and embrace a team based culture where people
will e)cel.
d. #o ma)imi+e shareholderOs value.

E
).;Types of Business
NBL was licensed as a scheduled bank. *t is engaged in pure commercial banking and
providing services to all types of customers ranging from small and medium enterprises
to large business organi+ations. *t is working for the economic welfare by transferring
funds from the surplus economic unit to those who are in deficit.
<un&tions of the NB!:
#he main task of the NBL is to accept deposited from various customers through
various accounts.
5rovides loans on easy terms and condition.
*t creates loan deposit.
#he bank invest it fund into profitable sector
*t transfers money by 'emand 'raft -''., 5ay /rder -5/. and #elegraphic
#ransfer etc.

Core :alues of NB!:
NBLOs core values consist of A elements. #hese values bind our people together with an
emphasis that our people are essential to everything being done in this bank.

Business (hilosophy of NB!:
#he philosophy of NBL is to develop the bank into an ideal and uni,ue banking
institution. #he perception is that NBL should be ,uite different from other privately
owned and managed commercial bank operating in Bangladesh. NBL is to grow as a
leader in the industry rather than a follower.

I
Mana'ement $(erarch- o, NBL
*anaging dire&tor
Senior e=e&uti'e 'i&e president
3=e&uti'e 'i&e president
Senior 'i&e president
:i&e president
Senior assistant 'i&e president
Assistant 'i&e president
Senior prin&iple offi&er
(rin&e offi&er
Senior offi&er
M
Deputy "anaging dire&tor
Offi&er
Assistant offi&er
>unior offi&er
).? (rodu&ts and Ser'i&es National Ban !td:

6pecial 'eposit 6cheme
:onthly 6avings 6cheme
Credit Card
9etail Banking
#rade 1inance
NBL 7ousing Loan
Lease finance
*nvestment Banking
9emittance 3 collection
Loan 6yndication
'eposit 6chemes
#ravelerOs Check
<estern (nion :oney #ransfer
6mall :edium 4nterprise Loan
Spe&ial Deposit S&he"e
1or most of the people on fi)ed income the opportunity to supplement their monthly
earning is a golden one. And NBL 6pecial 'eposit 6cheme gives a customer 0ust that.
!K
(nder this scheme, customers can deposit money for a term of = years. #he deposited
money is fully refundable at the e)piry of the term. At the same time, during the term
period they can en0oy a monthly profit corresponding to their deposited amount.

Deposited A"ount *onthly Benefit
#k. ?K,KKKC- #k. >?KC-
#k. ,KK,KKKC- #k. MKKC-
#k. !,KK,KKKC- #k. ,IKKC-
#k. =,KK,KKKC- #k. !,EKKC-
#k. ?,KK,KKKC- #k. >,?KKC-
#k. K,KK,KKKC- #k. M,KKKC-
#k. ?K,KK,KKKC- #k. >?,KKKC-
National Ban *onthly Sa'ings S&he"e:
National Bank Limited offers monthly savings scheme for its retail customers.
Strategies:
:onthly amount can be ?KK and multiple of it.
5remature encashment is available for urgent need.
Loan facility can be available up to IKL against N:6 account balance.
4asy installment basis deposit starting from #k.KK-?KKK.
*onthly Install"ent Return after ) years Return after ; years Return after @ years
?KK !K,A!E =E,IMA EK,I>M
,KKK >,!?? E?,EM ,>,AME
!,KKK I!,?K ,?,?I= !,I=,=M>
=,KKK ,!=,EA? !,!E,=E> >,!?,KM
>,KKK ,A?,K!K =,K=,AA ?,AA,EII
?,KKK !,KA,!E> =,EI,M?E E,KI,>I?
K,KKK >,!,?>M E,?E,M> >,A,MEK

!
Credit Card
6afe, *nstant and (niversal :oney.
Credit Card comes in both local and international forms, giving the client power to buy
all over the <orld. Now en0oy the conveniences and advantages of Credit Card as we step
into the new millennium.
Strategies:
?KL Cash withdrawal facility.
No hidden costs.
Credit Card <ees
Type of Card
Card <ree
7old Sil'er
Old Ne- Old Ne-
*ntOl QEK.KK Q?K.KK Q=?.KK Q!?.KK
Local #k.?KKC- #k.=KKC- #k.=?KC- #k.!KKC-
Consu"er Credit:
NBL offers consumer credit facility for retail customers.
<inan&ing ite"s:
4lectronics consumer products.
Computer or Computer accessories.
Strategies:
!!
1ast processing.
Competitive interest rate.
No application or processing fee.
4asy monthly installment.

Trade <inan&e
NBL provides a wide range of banking services to all types of commercial concerns such
as *mport 3 4)port 1inance and 6ervices, *nvestment Advice and other speciali+ed
services as re,uired with >? correspondents in E? countries of the world as well as with
=! overseas 4)change Companies.
*mport Business
National Bank Limited supports its customers by providing facilities throughout the
import process to ensure smooth running of their business. #he facilities are&
*mport Letter of Credit
*mport collection services 3 6hipping Juarantees
4)port Business
NBL offers e)tra cover to its customers for the entire e)port process to speed up receipt
of proceeds.
8o"e !oan
NBL offers home loan facility for purchasing flats or construction of house.
Strategies:
1inancing amount e)tends upto EKL or #k. E?,KK,KKK which is highest of total
construction cost.
Competitive interest rate.
No application or processing fee.
*nterest rate of =.E?L.
!=

3ligi$ility
Any Bangladeshi citi+en or N9B, who is capable of repayment, can apply for this loan.
!ease <inan&e
NBL provides lease financing for all types of manufacturing and service e,uipment.
Lease rental is determined based on ac,uisition cost and lease term. Lease term range
from ! to ? years. 9epayment through monthly lease rental is the most common,
however, ,uarterly, or half yearly payment can also be considered.
Strategies:
Competitive monthly rental.
#a) benefit.
1ast processing.
4asy handover after leasing period.

6estern Union *oney Transfer
:oney transfer from anywhere in the <ord to Bangladesh in minutes. Soining with the
worldOs largest money transfer service $<estern (nion%, NBL has introduced Bangladesh
to the faster track of money remittance. Now money transfer between Bangladesh and
any other part of the globe is safer and faster than ever before. National bank has made an
arrangement with <estern (nion 9emittance services, which has over !E years
e)perience for speedy remittance of money with more then >K countries.
!>
S6I<T 4So&iety for 6orld A6ide 9 <inan&ial Tele&o""uni&ation.
1or the benefit of their client, NBL gives opportunity by providing
#raveler Che,ue to those who want go abroad. 1or that they work as an agent of
American 4)press Bank and sell travel che,ue of A:4H to their clients. NBL has
become the member of 6<*1#. #he activates of 6<*1# have been started from last
'ecember !KKK.Soining with one of the worldOs largest money transfer services $:oney
Jram%, NBL has introduced Bangladesh to the faster track of money remittance. Now,
money transfer between Bangladesh and any other part of the globe is safer and faster
than ever before. #his simple transfer system, being on line, eliminates the comple)
process and makes it easy and convenient for both the sender and the receiver. #hrough
NBL " :oney Jram :oney #ransfer 6ervice, your money will reach its destination
within a few minutes.

Bran&hes
NBL has 'ivided the whole Bangladesh is to 6even divisions.
Chittagong 'ivision = branches
'haka 'ivision = branches
Thulna 'ivision KE Branches
9a0shai 'ivision Branches
6ylhet 'ivision = Branches
Barisal 'ivisin KE Branches
9angpur 'ivision KA Branches
!?
Total BC Bran&hes
Chapter: 4
(erfor"an&e of NB! at a glan&e
!A
(erfor"an&e of NB! at a glan&e
NBL. has a consistent dividend policy. *n line with that 6tock 'ividend of ?! percent
was declared for the year !KKI which strengthened paid-up capital base and it stood at
#k.!,I>A.?= million !KKM against authori+ed capital of E,>?K.KK million. #he statutory
reserve enhanced by =?.M? percent to #k.!, >I.=E million in !KKM after transferring !K
percent on pre-ta) profit while it was #k.,EEI.IE million in !KKI. At the end of !KKM
shareholdersO e,uity increased by >?.?? percent to #k.I, MA.EA million from #k.A,
!A.!E million of !KKI.
Capital Ade0ua&y ratio:
NBL always maintain a prudent balance between #ier- and #ier-! capital. #he Bank
has maintained overall capital ade,uacy at =.?A percent in !KKM of which K.IM percent
and !.AE percent as #ier- and #ier-! capital respectively against Bangladesh BankOs
re,uirement of K percent.
Deposit:
#he deposit base of the bank registered a growth of !E.AA percent in !KKM year over the
last year and stood at #k.EA, I=I.A> million. 4)pansion of branch network, competitive
interest rate and deposit products contributed to the growth.
In'est"ent:
#he daily average investment of the treasury in local currency was #k K,A!M.K million
in the from of Call Lending, #erm Lending, 9everse 9epo, 'ebentures and Jovt.
6ecurities. #he yield was .E percent higher than previous year. Like previous year,
inflow of foreign currency of the current year was higher than the previous year.
I"port 9 3=port Trade:
#he Bank opened a total number of !>,=I? LCs amounting (6' ,E.A million in
import trade in !KKM. #he main commodities were scrap vessels, rice, wheat, edible oil,
capital machinery, petroleum products, fabrics 3 accessories and other consumer items.
*n !KKM it handled I,EA e)ports !KKM it handled I,EA e)port documents valuing (6'
!E
??M.EI million with a growth of ?.> percent over the last year. 4)port finances were
made mainly to readymade garments, knitwear, fro+en food and fish, tanned leather,
handicraft, tea etc.
Re"ittan&e:
As a contributor of national economy, NBL is relentlessly working to ease the flow of
inward foreign remittance. #he bank introduced different products and technology
including 6<*1#, -#k.A!K.AMcrore. higher than that of !KKA achieving a growth rate of
!M.KE percent. *ntroduction of products like 7ome 'elivery 6cheme , 4lectronic 1und
#ransfer-41#. and different instant payment system and modern technologies like
6<*1# and online services have strengthen the position of the bank devices for more
speedy payments.
Net (rofit after Ta=:
National Bank Limited generated profit before provision of #k.=,=ME.EK million in !KKM
which was #k.=, !=.I! million in !KKI registering a growth of I.EE percent. Net 5rofit
after ta) grew by =A.>?L to #k.!,KEK.>E million in !KKM after making provision for loan
loss and income ta) for #k.!KK.KKmillion and #k.,?K.KK million respectively.
3arnings (er Share:
4arnings per share increased by =A.>?L to #k. E!.E> in !KKM from #k.?=.= of !KKI.

Offi&e Auto"ation
#echnology, Computer, *nternet those things a new generation of banking service to the
customer eight to ten years ago customers canOt thing about that they can withdrew or
deposit money from their account at least within one hour. But now it takes only at best
five minutes for withdraw their money. #his is the simple e)ample what technology
brings to banking sector. *n before bakers had to maintain huge ledger book for their daily
or any sorts of banking record. But now they can do it by one click and by strike of few
buttons. /nline banking is now getting more and more necessary part of banking sector.
National Bank Ltd has also reali+ed the current fact and they also try to serve online
banking service to their valued customer. #hough they do not lunch online banking
service e)tremely but within this year and ne)t year they are to introduce online banking
service at least primary for the branches of 'haka and some other key areas. Now they
have all branches under online banking services. 6o customer can get online banking
service only form all branches. NBL has its own software named 1L/9ABAT. #hey
!I
have web page -www.nblbd.com.. Customer can get detail information from the web
page. NBL also has credit card and A#: machine.
At glan&e of NB! 4ta$le 1.
5articular !KK !K !K!
Authori+ed capital E?KK.KK E>?K.KK !>?K.KK
5aid up capital >>!.= !I>A.?> IE!.E!
9eserve fund and
/ther reserve
M!A>.?> ?==M.!K >!I?.=I
4,uity fund =AEA.A> II?.E> A?I.K
'eposits MA!I=.I E=I>?.?I ??>I=.>=
Loans and advances IA!I!.E ?IAK.E >IKA.?
*nvestment !!=E.? !III.K I???.=
*mport business AEMII.II ?AM?>.EK A?>!=.M!
4)port business ==AI.>? !I??.?> !EIA!.A=
#otal income =E.AM E,!A.>K AAK?.
#otale)penses AA!=.KM ?KI.>= =EME.E
/perating profit >AM>.AK !,?!.ME !IKE.>K
operating profit >AM>.AK !?!.ME !IKE.>K
Net 5rofit after ta) ==>.AK K!.MA ??A.A=
9etained profit I.= ?.=> >A.>E
#otal
assets-4)cluding
contra.
!=>>.IA IIMK>.!= AAM=>.EI
1i)ed assets !AAK.!> !!>E.K MM.E>
Number of branches => K
AdvanceCdeposit
ratio-L.
IM.A EI.EA IA.A!
Cost of fund-L. I.A! K.K M.I>
9eturn on Assets >.K .EM =.!!
5rice 4arning 9atio I.=M .I !K.I?
4arning per share K.K =.== >.E
!M
Net Assets Ralue
5er 6hares
=.KK !I.EA =!.II
:arket 5rice 5er
6hare
M=.AAL MI.EIL M=.>IL
Number of
6hareholder
=>EIE =?A! IIII
Number of
4mployees
)1D; #@;C #?1@
Number of
1oreign
correspondents
11; 11; 1C;
Credit rating AA) A1 A1
6hort #erm ST/1 ST/1 ST/#
5rovision
9e,uired against
advances
#1B#.@C 1@@@.1C 11B@.@C
5rovision kept
againt advance
#1@1.#1 1D1B.?C 11B@.@C

/ff-site 6upervision -CA:4L6 9ating.

Bangladesh Bank has introduced a number of reporting forms and returns to be submitted
by the commercial banks regularly. /n the basis of those returns, Bangladesh Bank
prepares a composite rating on yearly basis for each bank. #his rating is known as
CA:4L6 rating. Based on the CA:4L6 rating, Bangladesh Bank gives 4arly <arning
6ignal -4<6. to a particular bank which is facing problems. CA:4L6 comprises of the
following five performance measures and these components are e)plained below

Credit Infor"ation Bureau 4CIB.
Before considering any loan proposal, a bank has to know the status of the loan applicant
in regard to hisCher liabilities outstanding with any other banksCbranches. Bangladesh
Bank has established C*B in August MM!. C*B report is considered as one of the basic
information for consideration of a loan. #he aim of the report is to avoid duplication of
credit facilities, avoid credit facilities to defaulters and 0ustify the status of the borrowers.
*t was made mandatory for all banks to collect data from C*B before sanctioning any loan
proposal above #aka ?.KK million. Apart from this, to maintain record of the borrowersO
=K
performance, NCBs have to submit report to Bangladesh Bank regularly on their progress
in collection of the larger overdue loans and on larger loans sanctioned since Sanuary ,
MMK.

!arge !oan Reporting Syste" 4!!RS.
Large Loan 9eporting 6ystem was introduced by the Bangladesh Bank to keep a control
and supervision on a regular basis in the process of sanctioning loans having bigger
amount. By Suly MM?, EIL of new large loans of NCBs have been reported by LL96.
Now, almost all large loans are reported by LL96. *n the meantime, Bangladesh bank has
formed a separate section in the 'epartment of Banking /peration and. 'evelopment
-'B/'.. #he commercial banks have to seek permission from the section prior to
sanction any large loan. #his section closely monitors and reviews the issues of larger
loans of the banks. #he responsibility of the section is to advise the concerned bank to
take immediate appropriate actions if any loan is assumed undue risky.




=
Chapter .
F(n/(n'0 1 Conc*20(on








=!
Findings:
<hile working at National bank L#'. Chalkba+ar Branch, * 7ave attained to a newer
kind of e)perience. After the collection and analysis of data, * have got some findings.
#hese findings are completely from my personal point of view. #hose are given below&
National bank Limited has already achieved a high growth rate accompanied by
an impressive profit growth rate in !KKI the number of deposit and investment are
also increasing rapidly.
National Bank Limited has already established a favorable reputation in the
banking industry of the country. *t is one of the leading private sector commercial
banks in Bangladesh. #he bank has already shown a tremendous growth in the
profits and deposits sector.
National Bank has an interactive corporate culture. #he working environment is
very friendly, interactive and informal. And there are no hidden barriers or
boundaries while communication between the superior and the subordinate. #his
corporate culture provides as a great motivation factor to the employees.
#hey face troubles with those clients who have not any knowledge in banking
transactions and banking rules.
1rom the clients view introducer is one of the problems to open an account. *t is
general problem to all commercial bank.
National Bank has own training institution for its employees, so they donOt re,uire
to train them from other training *nstitutions.
National Bank has insufficiencies of authori+ed 'ealer Branch in respect of the
total foreign e)change business is very small in respect of total market.
#he number of branches is not sufficient to cover the country most.
Banks peons are not a so effective thatOs why officer of bank transfer papers and
documents from one desk to other, it consumes time of officer and also clients.
#he bank failed to provide standard re,uirement polices in lower level like
assistant officer to 0unior officer. As a result the services of the bank face
problems in recent days.
==
NBL is not using data base network in information technology department. so
they have to transfer data from branch to head office by using pen drive, for
e)ample, clearing che,ue.
#he bank does not go for rural banking, but rural people are bankable.
5roper documentation rules sometimes create serious problems for the clients.
#he portfolio of bank is not that much diversified because it inverts ma0or portion
of its fund on government securities.
6ometimes investment operations of NBL are hampered due to increase,
dishonest, indirect, hypocritical nature of people.
#he Bank has disbursed a highest amount investment in urban areas and tiny
amount of investment in rural areas of Bangladesh.
#he bank mostly invests in the industrial and commercial sectors.
4mployees are not enough efficient and smart which the other private bank has.
#hey do not have sufficient power generate service on lots of electricity.
Recommendations
1or the probable solution of the identified problems ensure better progress to National
Bank in future, some necessary steps are recommended bellow on the basis of collected
data, observation ,e)pert staffs opinion and my Tnowledge and 0udgment.
National Bank should give more attention to advertisement for creating more
attraction among its customers, which is helpful to collect more deposits and
increase investments scope. #hatOs why bank should give emphasis on public
relation, e-marketing2 generate word of mouth and referrals.
#he entire department should be well informed regarding their goals and
ob0ectives. *t is essential to e)ecute company ob0ective into individual target.
Sob description should be clarified and proper training facilities should ensure to
improve the performance of bottom line management.
#he bank has the provision of internship but there is on organi+ed program for
internship. 6o they should organi+e programs for internship.
*t was observed that the officers of National Bank have to spend more time in
preparing vouchers2 this can be avoided by the automation.
Automated #eller :achine -A#:. should be introduced as soon as possible
because of present market demand of the customer and educated customer now
wants technology based banking.
Attractive incentives packages for the e)porters will help to increase the e)port
and accordingly it will diminish the balance of payment gap of National bank.
National Bank will have to encourage entrepreneurs, businessmen, rich people
and Jovernment to come forward to established ancillary organi+ations.
National Bank is to be concentrating in always monitoring the performances of its
competitors in the field of foreign trade.
Bank can provide foreign market reports that will enable the e)porter to evaluate
the demand for their products in foreign countries.
=>
'ue to lack of proper knowledge about the operation procedure and service
provide to the customers by 6<*1# certain customers are facing problem as they
have to wait for certain time to get service. And sometimes personnel arenOt being
able to operate 6<*1# without any confutation. #hey are not fully independent
handing 6<*1#. /fficial training is the solution of this problem.
Bangladesh bank should take initiative to from a high "powered committee
consisting scholars and e)perts from different discipline and professions such as
academicians, economistOs banker, lawyers etc. #o design an appropriate and
useful legal framework for *slami 6hariah based banking. #his type of committee
may be helpful for the necessary correction of government policies in *slami
banking.
Branches of National bank are not sufficient as per demand of the people. 6o
National Bank should setup new branches.
#hey should also focus on the marketing aspect by informing the customers about
its product and offering services charges.
National Bank Ltd. 6hould focuses on their promotional activities on its
marketable products.
NBL can operate one or more Branches based on *slamic 6hariah because now a
dayOs *slamic 6hariah based bank and financial institutions performed well in
business.
Arrangement of monthly C,uarterly training courses C workshop for the client
selected by the branches in order to promote investment client of the desire level.
#he bank should improve their interior design and decoration in order to create
more customer attraction.
National Bank should more concern about e-banking.

Conclusion
#odayOs business is very competitive and comple). #o survive in the related sector the
organi+ation need competitive people and has to take some effective policy. 4very
country must have a plan for important role in economic activities. Bangladesh is no
e)ception of that. Commercial banks financial development and economic developments
are closely related. #hatOs why the private commercial banks are playing significant role
in this regard.
#he national credit commercial bank Limited -NBL. is one of the best banks in respect of
service, profitability and strength among the private commercial banks in our country and
also to play a catalyst role in the formation of capital market. National bank Limited
bears a uni,ue history of its own. #he bank has set up a new standard in financing in the
*ndustrial, #rade and foreign 4)change business. *ts various deposit and credit products
=?
have also attracted the clients-both corporate and individuals who feel comfort in doing
business with the bank.
NBL is now been called a modern bank that undertakes all its operations at an
international standard. /ver the years, NBL has built itself as one of the pillars of
BangladeshOs financial sector and is playing a pivotal role in e)tending the role of the
private sector of the economy.
Referen&es:
Annual 9eport of National Bank Limited, !KKE,!KKI, !KKM,!KK,!K.
Duarterly daily statement of affairs of NBL 0atrabari Branch
Block.stanley. B 3 7irt. Jeoffrey.
Jordon. 4 3 Natara0an. Banking theory, law and 5ractice, 4leventh 4dition,
7imalaya 5ublishing house, 5.IK, I.
Bangladesh Bank, Annual Report: 24!2". 6tatistics 'epartment, Bangladesh
Bank, 'haka.
Bangladesh Bank, #conomic Trends$ various issues, 6tatistics 'epartment,
Bangladesh Bank, 'haka.
Bangladesh Bank, Duarterly publication of %cheduled &an's %tatistics, various
issues, 6tatistics 'epartment, Bangladesh Bank, 'haka.
Barai :.T .and :. Liakat 7ossain, $1inancial Jlobali+ation& Banking sector in
Bangladesh%. <orking paper, presented on :arch E, !KK!, #6C Auditorium,
(niversity of 'haka.
=A