A Comparative Analysis between General Commercial Banks and Islamic Shariah Banks

8/18/2019 A Comparative Analysis between General Commercial Banks and Islamic Shariah Banks

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a l y s i s b e t w e e n G e n e r a l C o m m e r c i a l B a n k s a n d I s l a m ic


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1

Course Title: Project eport

Course Code! B"S#$%

Prepared To

Leo Vashkor Dewri

Lecturer

Department of Business

Administration

East West University

Prepared By

Saifu !sam

!D: "##$%&%1&%#"'

(a)or: Accountin*

Sprin*+1,


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1- Apri "#1,

LeoVashkor Dewri

Lecturer.

Department of Business Administration


Dhaka/

Su0)ect: e*ardin* Su0mission of BUS,$2 3ro)ect eport

Dear Sir:

With *reat peasure ! su0mit this pro)ect that ! have 0een assi*ned as an important re4uirement of

BBA pro*ram at East West University/ ! found the study to 0e 4uite interestin*. 0eneficia and

knowed*e/ ! have tried my eve 0est to prepare an effective 5 credita0e report/

6his pro)ect report is a0out 7A comparative financia anaysis 0etween *enera commercia 0ank

And !samishariah 0ank8/

! aso want to thank you for your support and patience with me and ! appreciate the opportunity

provided 0y East West University to work on this wonderfu pro)ect report/

Sincerey 9ours.

Saifu !sam

!D: "##$%&%1&%#"'

(a)or: Accountin*

Department of Business Administration


"


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Acknowled(ement

Assistance and cooperation of different peope in different sta*es of my pro)ect paper preparation

heped me to add more 0eauties to the report/ 3reparin* this pro)ect a have worked a ot and

went to different paces to coect data/ Without those peope hep it woud not have 0een

possi0e for me to work on this pro)ect/ ! faced many pro0ems when started the work on report

0ut ! am *reaty thankfu to Aah for ena0in* me to *et successfuy throu*h my

responsi0iities/

! woud ike to thank (s/ Leo Vashkor Dewri who is my pro)ect advisor. heped me ot to prepare

this pro)ect. time to time she advised me how to work on it/ Aso my cousin (r/ (ohammad Asif

who worked in Dhaka Stock Echan*e whose assistance priced me hu*e. thanks to that person

too/ 6here are many peope who heped me; it is not possi0e to mention a the names thou*h !

remem0er your hep/

! have prepared this report as an inte*ra part of BBA pro*ram Under the Business

Administration department. East West University/ ! am hi*hy inde0ted to a num0er of person for

their kind advice. su**estions. directions and cooperation that have ena0ed me to prepare this

report/

! am very *ratefu to my teacher for a his kind cooperation and *uideine in preparin* this

paper/

! aso ike to thank the entire departmenta heads and stuff who heped me in various ways/ 6he

mem0ers of the mana*ement of a the 0anks ! worked with were very co%operative and hepfu

to me from top to 0ottom eve/


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)*ecutive Summary

6his pro)ect report is 0ased on my anaysis of financia statements of "##2. "##$. "#1#. "#11

and "#1" of 3rime Bank Limited. Brac 0ank Limited. Dutch%Ban*a Bank Limited. !samic

Bank. Shah)aa Bank. and A%Arafah !samic Bank Limited/ ! have done my anaysis mainy

focusin* on the comparative anaysis 0etween these si Banks/ !n this period. ! have chosen three

!samic and three =enera >ommercia Banks to done this performance >omparison/ !t was a

*reat opportunity to know and *ather knowed*e different types of 0ankin* operations/ (y

facuty supervisor heped me to choose the topic% 7Comparative analysis between General

Commercial Banks and Islamic Shariah Banks8/ !n the new competitive 0usiness era. *enera

0ankin* sector is *ettin* more competitive in Ban*adesh/ But it is aso true that. !samic

Bankin* sector has drawn the attention of many in this competitive Bankin* !ndustry/

6his paper focuses on the comprehensive comparison a0out the performance of *enera and

!samic 0ankin* system operation in Ban*adesh/


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had to anay?e and *ive si*nificant comments re*ardin* the chan*es in the financia position/

Anaysis and interpretation of these financia statements throu*h ratio anaysis has now 0ecome

an important techni4ue for performance appraisa 0ecause the investors. financia eperts.

mana*ement eecutives and the 0ankers are aways rey on these ratios to make important

decisions/ 6he mana*ement team of any 0ank. investor and the *overnment a*encies aways

concern a0out i4uidity ratios and ade4uacy ratios of a 0ank which interprets the efficiency of a

0ank/

As a part of my B/B/A pro*ram. ! have spent three months 0y anay?in* the activities of these

!samic and 6raditiona Banks/ ! have anay?ed the financia statements of these 0anks to find out

its ratios 0y usin* its past records/ After preparin* this report ! came to know that anaysis of

financia statements throu*h ratios heps to overcome the past faws and make the future

decisions and strate*ies/ 6herefore. it is very necessary for every or*ani?ation whether the

company+s si?e is to make financia statement and to anay?e it 0y ratios/

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Table of contents

Topic Page no.

Letter of Transmittal I

Acknowledgement Ii

Executive summary iii-iv

Chapter 0

1.1 Introduction 10-11

.! "ackground of the study 11

.# $%&ective of the report 11-12.' (cope of the pro&ect 12

.) Limitation of the study 12

.* +ethodology , data sources 13

.*. -ata analysis 14

.*.! Conceptual framework 15

.*.# Theoretical ramework

16-18

.*.) Population 18

.*.* (ample 18

Chapter 0!

2.1 Literature Review 19-20

Chapter 0#

3.1 Overview of banking system of Bangladesh 21

#.! /mpact of "anking /ndustry in the "angladesh

economy

21-22

#.# Current (tructure of "ank 22-23

#.' /slamic %anking 24

#.) Comparison %etween /slamic %ank and general

%ank

24

@


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Chapter 0'

.1 Ratio analysis 25

'.! Prota%ility ratio 26

'.!. 1eturn on sales 26-29

'.!.! 1eturn on asset 21$A3 28-29

'.!.# 4et interest margin 29-31

'.!.' 4et operating margin 30-32

'.!.) Earnings per share2EP(3 32-34

'.# Li5uidity ratios 34

'.#. Current ratio2C13 35-36

'.#.! Current asset ratio2CA13 36-37

'.#.# Loan ratio 38-39

'.' 1isk ratios 39 '.'. Credit risk 39

'.'..Ttotal loans6 total deposits 40-41

'.'.! /nterest rate risk ratio 41

#.'.!. /nterest sensitive asset6 interest

sensitive lia%ilities

41-43

'.'.# Price risk 43

'.'.#. Price earnings ratio 43-45

'.) E5uity ratio 46-47

'.* $ther nancial ratios 47

'.*. 1ate of return on loans 47-49 '.*.! Loan to asset ratio 49-51

'.*.# total de%t to e5uity ratio 51-53

'.*.' -e%t ratio 53-55

Chapter 0)

!1 "ndings of the #ro$ect at a glance 56

).! Performance indicator 57 ).!. Prota%ility 57

).!.! Li5uidity 58

).!.# 1isk 58-59

).!.' Capital Ade5uacy 59

).!.) $thers 59-60

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List of tables

Ta%le

no.Ta%le name Page no.

0 (teps o& presenting ratio ana"ysis 14

0! !urrent stru%ture o& 'an)ing system in

*ang"a$es

22-23

0# !omparison o& genera" 'an)ing an$ Is"ami%

'an)ing

24

0' Return on equity 260) Return on assets 28

0* Net interest in%ome 29

07 Net operating margin 31

08 Earnings per sare 33

09 !urrent ratio 35

0 !urrent asset ratio 36

"oan ratio 38

! #ota" "oan to tota" $eposit 40

# Interest sensitive 42

' pri%e earnings ratio 44) Equity ratio 46

* Rate o& return on "oans 48

7 "oan to asset ratio 50

8 tota" $e't to equity ratio 52

9 $e't ratio 54

$


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!0 +n$ings o& te pro,e%t at a g"an%e 56

Chapter! .1

1/1 Introduction

Ban*adesh is the country where more than $# peope are (usim 3ew search

ei*ion53u0ic Life 3ro)ect. "#11C/ / aturay. it remains a deep cry in their hearts to fashion

1#


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and desi*n their economic ives in accordance with the precepts of !sam/ 6herefore. with a view

to provide !samic 0ankin* services at first !samic Bank Ban*adesh td was esta0ished 1$2&/

Assi*nmentpoint/com. 1$$-C/ ow we have severa !samic Banks those are providin* different

0ankin* services than that of *enera commercia 0ank/ !samic Bankin* has 0een *rowin*

wordwide si*nificanty in the past three decades and is deveopin* remarka0y in the Southeast

Asia. (idde East and even in Europe and in orth America/ Ban*adesh aso has this dua

0ankin* system where !samic shariah Bank and *enera Bank 0anks are operatin* side 0y side/

6he num0er of *enera commercia 0anks are more than the !samic Shariah 0anks. contri0utin*

more in the economy/ 6he 0anks pay an important roe in the economy of the country/ Bankin*

sector in Ban*adesh demonstrated a moderate eve of resiience in S activities and =reen Bankin* initiatives/

(oreover. preparation of revised risk mana*ement *uideines is at fina sta*e/ 6he foowin*

para*raphs hi*hi*ht the recent re*uatory and supervisory measures initiated 0y BB for 0anks.

industry statistics and performance trends of the 0ankin* sector/ 6he contri0ution of 0ankin*

sector to the =D3 of Ban*adesh is very impressive/ !n the


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theoretica knowed*e into the pro)ect work/ 6his pro)ect ena0es a student for deveopin* their

anaytica skis/ At the end of the day it refects what they earned throu*hout the pro*ram/

1/' bjective o0 the project

The primary objective!

6he primary o0)ective of preparin* this report is to compare financia performance anaysis of

=enera >ommercia Bank and !samic Shariah Banks. and to have a cear conception a0out a

of the essentia parts of this pro)ect/

Secondary objective!

6o evauate the 3rofita0iity of these 0anks in a view to compare performance/

>ompare the performance of these 0anks throu*h various financia ratios/

Gverview of these Banks/

6o identify the pro0em facin* 0y them/

At east to reate theoretica knowed*e with practica eperience in severa functions of

these 0anks/

6o show the compara0e areas of =enera >ommercia Bank and !samic Shariah Banks/

6o know a0out the competiveness amon* the !samicshariah0anks of Ban*adesh in respect to

the services provided 0y the =enera >ommercia Bank 0anks/

1/# Scope o0 the project

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6he pro)ect covers the topic 7A >omparative anaysis0etween !samic Shariah Banks and

=enera >ommercia Banks/8 6o conduct a study on this topic ! have *athered vaua0e

information from EWU i0rary. 5 Dhaka stock echan*e i0rary/ ! have aso *ot some

information from we0 sites that are reated to my topics/ ! have aso coected much information

from Security Echan*e >ommission i0rary/

1/+ 2imitation o0 the study

Shorta(e o0 time period!

! had to compete this report writin* within a shorter period of time/ So the time constraint of the

study hinderin* the course of vast area and time for preparin* a report within the mentioned period is reay difficut/

2ack o0 su00icient well in0ormed o00icials!

(any officias of the 0ranch are not we informed a0out some re4uired information/ ! had to

face many difficuties to coect this information/

1/, 3ethodolo(y 4 data sources

Project desi(n!

6his pro)ect report typicay focused on ratio anaysis 0ut there is some descriptive information

too/ 6wo *enera commercia 0anks and two !samic shariah 0anks are taken to evauate the two

different 0ankin* stye performances/

5ata sources!

6his report is prepared mainy on the etensive use of secondary data avaia0e in annua reports/

Based on the data from the annua reports the overa pro)ect report is prepared/ 6he overa

conceptua and theoretica framework has 0een epained as we as the how the data are

anay?ed is epained 0eow:

1&


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1/,/1 5ata analysis!


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1/,/& Conceptual 0ramework

1@

apita

atio

Sovency

atio

Li4uidity

atio

3rofit ratio Gther

ED!6 GE

LA

>A

!6EES6GA

3!>E 6DE !(

LD

G( DE

E3S


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1/,/' Theoretical 8ramework

6he ratio anaysis invoves method of cacuatin* and interpretin* financia ratios to asses+ 0anks

performance/ !n order to compare performance of !samic 0anks and =enera commercia 0anks

for the period of "##2%"#1" the study uses inter%0ank anaysis/ 6he study evauates inter%0ank

financia performance of !samic and =enera commercia 0anks in term of profita0iity. i4uidity.

risk. capita ade4uacy. and others efficiency/ apita GEC J et !ncome 6ota E4uity >apita

o eturn on Assets GAC J et !ncome 6ota Assets

o et !nterest (ar*in !(C J K!nterest !ncome%!nterest EpenseC 6ota Assets

o et Gperatin* (ar*in G(C J et Gperatin* evenues 6ota Assetso Earnin*s 3er Share E3SC J et !ncome >ommon E4uity Shares Gutstandin*

2i9uidity atios

Li4uidity ratios measure the 0ank a0iity to meet its short%term o0i*ations/ Banks face i4uidity

pro0em due to ecess withdrawa from current and savin* account eadyratios/com. "##1C/

6here are severa measures of i4uidity/ Li4uidity position of 0anks is measured 0y usin* four

foowin* ratios/o >urrent atio >C J >ash and account with 0anks6ota deposits

o >urrent Asset atio >AC J >urrent asset 6ota asset

o Loan Deposit atio LDC J Loans Deposits

1'


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isk atios

isk to the mana*er of a financia institution or to a re*uator supervisin* a financia institution

means the perceived uncertainty associated with a particuar event !nvestopedia/com. "###C/

Bankers aways try to achieve the hi*h stock vaue and hi*h profita0iity/ !n this case. ! have

chosen some vita risk that encountered daiy 0y financia institutions/ 6his are%

a/ Credit isk :6he 3ro0a0iity that Some of the Bank+s Assets Wi Decine in Vaue and

3erhaps Become Worthess/

o 6ota Loans6ota Deposits

0/ Interest ate isk 3easures! 6he Dan*er that Shiftin* !nterest ates (ay Adversey

Affect a Bank+s et !ncome. the Vaue of its Assets or E4uity/

o !nterest Sensitive Assets!nterest Sensitive Lia0iities

>/ Price isk! (arket vaue ratios reate the o0serva0e market vaues ike the stock price with

the 0ook vaues o0tained from the firmMs financia statements/

o 3rice Earnin*s atio

Capital Ade9uacy atios

>apita ratios indicate the heathiness of financia institution to shock withstandin* osses

!nvestopedia/com. "##"C/ 6hese ratios identify the aready eistin* 0ankin* pro0ems/ Adverse

trends in these ratios may increase risk eposure and capita ade4uacy pro0ems/ 6his study

focused on two foowin* >apita ratios/

o E4uity atio J Sharehoder+s E4uity 6ota Assets

ther 8inancial atios

12


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Chapter .&

!. L/TE1AT;1E 1E


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measured 0y the etent of its or*ani?ationa effectiveness/ !n the contet of services rendered

towards pu0ic the performance of an or*ani?ation can 0e viewed as Nthe etent to which its work

is carried out within esta0ished specifications for *oods and services produced to the *enera

satisfaction of the cientee served. within *iven cost and time constraints. and in such a manner

as to support or contri0ute to the achievement of the or*ani?ation o0)ectives/

Ber(er 4=umphery Fumhery. 1$$'C opinion that the measurement of performance of 0ankin*

sector is that which represent the scenario of *ood and 0ad performance of 0ankin* sector a

over the word/ By measurin* the performance a 0ank can resove the ackin* and perform 0etter

in future/

Bhattacharjee Bhattachar)ee. 1$2$C found that there are five different sets of productivity

represent the five different dimensions/ 6hree sets of showin* the productivity measurement and

the rest of the two showin* the risin* trend a0out the performance of a 0ank/ Bankin* Sector inBan*adesh to 0e associated with variations in poicies pertainin* to structure and processes as

we as variations in deposit mi. credit mi and service packa*e offered 0y 0anks/ Each of these

factors represented specific *roup of homo*enous productivity measures/ 6hey are empoyee

productivity. a0or productivity etc/

Chowdhury and Ahmed >howdhury. "##"C stated a0out the net income and the E3S of the

seected private commercia 0anks have increased from the previous year durin* "##& to "##@ 0y

conducted the research of the performance of the 0ankin* sectors/ Loans recovery rate indicated

that the 0anks are a0e to mana*e their credit efficienty/

Accordin( to ;cube cu0e. "##$C noticed that there are two 0road approaches to measure the

performance of the 0ankin* sector and accountin* approaches/ 6his makes use of economic

techni4ue and financia ratios/ 6raditionay accountin* methods primariy 0ased upon the use of

financia ratios have 0een empoyed for assessin* 0ank performance/

"1


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Chapter .'

'/1 verview o0 bankin( system o0 Ban(ladesh

6he financia system of Ban*adesh is comprised of three 0road fra*mented sectors:

1/


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voume of non%performin* oans 3LsC/ ed Commercial "anks 24C"s31 (ona"i *an) 3 grani *an)

2 anata *an) 4 Rupa"i *an)

Private Commercial "anks 2PC"s3

1u'a"i *an) 16"-ra&a Is"ami *an) t$

2ttara *an) 17(o%ia" Investment *an) t$

"&


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3Nationa" *an) t$ 18ut%-*ang"a *an) t$

4#e !ity *an) t$ 19er%anti"e *an) t$

5nite$ !ommer%ia" *an) t$ 20(tan$ar$ *an) t$

6 ra' *ang"a$es *an) t$ 21:ne *an) t$

7II! *an) t$ 22E;I *an)

8Is"ami 'an) *ang"a$es t$ 23*ang"a$es !ommer%e *an) t$

9" *ara)a *an) *ang"a$es t$ 24utua" #rust *an) t$

10Eastern *an) t$ 25irst (e%urity *an) t$

11N!! *an) t$ 26#e remier *an) t$

12rime *an) t$ 27*an) sia t$

13(out East *an) t$ 28#e #rust *an) t$

14 a)a *an) t$ 29 (a a"a" *an) imite$

15 I!* Is"ami% *an) 30 * *an)

8orei(n Bank

1 meri%an E .#e

*an)

11 (ami"Is"ami *an) :& *arain E!

6 Nationa" *an) o& a)istan 12 (tan$ar$ !artere$ *an)

5evelopment Banks

1*ang"a$es ?risi *an) 3 *ang"a$es (i"paRin(angsta

*an)

2Ra,sai?risinnayan *an) 4 *an) o& (ma"" In$ustries @

!ommer%e *ang"a$es t$

thers

1 nsar A nnayan *an) 3 rameen *an)

2 *ang"a$es (ama'ai *an) t$

.*(*

4 ?armasanstan *an)

Table # 02: Current Structure of Banking System in Bangladesh.

'/# Islamic bank

",

http://en.wikipedia.org/w/index.php?title=ICB_Islamic_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=AB_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=AB_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ICB_Islamic_Bank&action=edit&redlink=1


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&+

!samic 0anks in the 0ankin* sector demonstrated a remarka0e *rowth in >911/ 6he epansion

of the !samic Bankin* network was aso impressive/ As a proportion of the overa 0ankin*

industry. the com0ined share of !samic 0anks. ecudin* !samic Bankin* Branches windows of

conventiona 0anks was found around 1@ percent in assets. 12 percent in investments. 1'percent

in deposits. 1& percent in e4uity and 1@ percent in ia0iities as of end%Decem0er "#11 Ohan.

"#1,C/

'/+comparisons between Islamic bank and (eneral bank

?eneral commercial %ank

ing

/slamic "anking

oney is a %ommo$ity 'esi$es

me$ium o& e


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&,

enera" %ommer%ia" 'an)s use

money as a %ommo$ity /i%

"ea$s to ination

Is"ami% 'an)ing ten$s to %reate "in) /it

te rea" se%tors o& te e%onomi% system

'y using tra$e re"ate$ a%tivities (in%eB

te money is "in)e$ /it te rea" assets

tere&ore it %ontri'utes $ire%t"y in te

e%onomi% $eve"opment

Table # 0: Comparison of !eneral banking" slamic Banking.

Chapter! .#

#/1 atio analysis

atio anaysis is a study of the reationships 0etween financia varia0es/ !t is very important in

fundamenta anaysis which investi*ates the financia heath of any financia institution/ 6his

ratio anaysis *ives frank financia information in this current 0usiness word/ By *ivin* a *ance

anyone wi 0e a0e to know what the position that institution is in now/ 6herefore a

stakehoders take interest in ratio anaysis/


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#/& Pro0itability ratios

3rofita0iity atios measure the overa earnin*s performance of an institution and its efficiency

in utii?in* assets. ia0iities and e4uity investopedia/com. "##"C/ 3rofita0iity ratios show a

companyMs overa efficiency and performance/ atios that show returns represent the firmMs

a0iity to measure the overa efficiency of the firm in *eneratin* returns for its sharehoders/

#/&/1 eturn on )9uity

eturn on e4uity measures a 0ank+s profita0iity which cacuates how much net profit that 0ank

may *enerates with the money that sharehoders have invested as e4uity !nvestin*answers/com.

"##-C/ 6he eturn on E4uity of a company measures the a0iity of the mana*ement of the

company to *enerate ade4uate returns for the capita invested 0y the owners of a company/ 6he


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&%

!'@ ""L!!.88

9.9

8.9)

7.9

).'7

*.87

/"L 9 *.9# 9 7.'! #.9 7.!)

(/"L !).)8 !). #0.7

#.8

7.0 !!.''

A/"L

!'.7

!'.

!0.0

8.#'

#.)

!0.#

Table # 0$: %eturn on &'uity.

Interpretations:

GE is very popuar ratio toward the sharehoders of any 0ank/ After doin* the anaysis on the

si seected 0anks the industry avera*e comes at ",/


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&$

0

5

10

15

2025

30

35

40

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)

sa,"a" 'an)

"-ra&aIs"ami 'an)

Chart ( 01: %eturn on &'uity

#/&/& eturn on Assets @A

6he eturn on Assets of a company determines its a0iity to utii?e the assets empoyed in that

company efficienty and effectivey to earn a *ood return !nvestopedia/com. "##,C/ eturn on

assets measures the amount of profit that the company *enerates as a percenta*e of the vaue of

its tota assets/ A companyMs return on assets GAC is cacuated as the ratio of its net income in

a *iven period to the tota vaue of its assets this ratio+s formua is%

4ame of

"ank

!008

2@3

!009

2@3

!00

2@3

!0

2@3

!0!

2@3

Avera

ge

2@3

/ndust

ry

Avera

"$


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'.

ge

-""L

.)0 .*0 !.!0 .90 .70 .78

!.'0

@

P"L .#0 !.#7 !.* !.07 !.0 .98

""L

.*'

.)*

.))

.#*

0.#)

.!9

/"L .!7 .#' .'7 .#) .!7 .#'

(/"L

!.!* !.07 #.0 .!* .'' !

A/"L

.80

.77

!.*)

!.0*

.#

.9!

Table # 0): %eturn on *ssets. Interpretations:

atio Anaysis for the eturn on Assets of seected si 0anks shows those in years "##2.

"##$."#1#. "#11. and "#1" the avera*e return from 1## taka invested is assets is respectivey

1/'2. 1/$2. 1/"$. 1/&,. ". and 1/$" respectivey for the Banks% DBBL. 3BL. BBL.

!BL. SF!BL and A!BL; and there avera*e is "/,#/ 6he hi*her the percenta*e is the 0etter for

the 0ank+s asset *rowth/ So we can say that !>B! !>B !samic BankC an !samic Bank without

any dou0t is in the 0est position compare to these other 0anks in respect to return on assets/ 6he

positions return on e4uity is shown in a *raph 0eow:


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'1

0

05

1

15

2

25

3

35

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)

sa,"a" 'an)

"-ra&aIs"ami 'an)

Chart ( 02: %eturn on *ssets.

#/&/' ;et Interest 3ar(in @;I3

et interest mar*in !(C is a measure of the difference 0etween the interest income *enerated

0y 0anks or other financia institutions and the amount of interest paid out to their enders for

eampe. depositsC. reative to the amount of their interest%earnin*C assets Answers/com. "##'C/

!t is simiar to the *ross mar*in of non%financia companies/

4ame of

"ank

!008

2@3

!009

2@3

!00

2@3

!0

2@3

!0!

2@3

Avera

ge

2@3

/ndustr

y

Averag

e

-""L #.# !.90 '.0 '.90 '.#8 #.9!

!.'#

@

P"L !.!8 !.# #.'9 !.* !.)! !.*'

""L

!.'*

!.##

.97

!.*7 !.0 !.)*

/"L '.0 #.7 #.8# '.!9 #.#9 #.8)

&1

;et Interest 3ar(in @;I3 D@Interest Income?Interest )*pense Total

http://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Interest


33/71

'&

(/"L #.9 !.8* !.9! #.'! #.## #.!9

A/"L 0.79 0.8

!.)

0.!9 .0# .'

Table # 0+: ,et nterest ncome.

Interpretations:

As the net interest mar*in measures how ar*e a spread 0etween interest revenues and interest

epenses mana*ement has 0een a0e to achieve 0y cose contro over earnin* assets and pursuit

of the cheapest source of fundin*. thus from the a0ove cacuation we can definitey say that

Dutch%Ban*a Bank imited is in the 0est position in terms of the net interest mar*in comparin*

with other five 0anks/ DBBLhas a net interest ratio of &/$" whereas the industry avera*e of

these 0anks is "/,&/ 6wo !samic 0anks are havin* simiar type of percenta*es i/e/ &/2- and

&/"$ . on the other hand 3rime Bank Limited is havin* a percenta*e of "/@,/

0

051

15

2

25

3

35

4

45

5

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)

sa,"a" 'an)

"-ra&aIs"ami 'an)

Chart ( 0: ,et nterest -argin.

#/&/# ;et peratin( 3ar(in @;3

&"


34/71

''

6his ratio says how effectivey mana*ement is runnin* its operations 0y usin* assets to *enerate

income and epenses !nvestopedia/com. 1$$$C/ A companyMs operatin* income after operatin*

epenses are deducted. 0ut 0efore income taes and interest are deducted/ 6he formua is%

4ame of

"ank

!008

2@3

!009

2@3

!00

2@3

!0

2@3

!0!

2@3

Avera

ge

2@3

/ndust

ry

Avera

ge

-""L #.9 #.# '.) #.88 #.#' #.)7

#.#0

@

P"L !.9 382 #.0) #.*8 278 #.!)

""L ).)! #.)0 '.0! #.* #.') '.0!

/"L #.) #.!0 #.!) !.0 !.#0 !.87

(/"L '.0 #.'* '.)0 !.78 !.*) #.)0

A/"L

#.#9

#.!8

#.8)

#.70

#.')

#.)#

Table # 0: ,et /perating -argin.

Interpretations:

atio Anaysis for the et Gperatin* (ar*in shows that the industry avera*e is &// Amon*

the si seected 0anks BBL and Shah Haa !samic Bank Limited SF!BLC is in the 0est position

with havin* an a0ove avera*e operatin* mar*in of ,/#" and &/-' whereas the two seected

0ank DBBL and BBL aso achieved a0ove avera*e mar*in/ !t means SF!BL. DBBL. BBL. A!BL

a four 0anks are havin* effective mana*ement for their operations/ 6he positionof these 0anks

is shown in a *raph 0eow:

&&

;et peratin( 3ar(in @;3 ;et peratin( evenues Total


35/71

'#

0

1

2

3

4

5

6

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)

sa,"a" 'an)

"-ra&aIs"ami 'an)

Chart ( 0$: ,et /perating -argin.

#/&/+ )arnin(s per Share @)PS

6he portion of a companyMs profit aocated to each outstandin* share of common stock /

>ompanies usuay report the wei*hted avera*e of the num0er of shares outstandin* over the

reportin* period !nvestopedia/com. "###C/ Earnin*s per Share are a widey used measure of

profita0iity/ et income of a firm divided 0y the num0er of its outstandin* shares the shareshed

0y the stockhoders sharehodersC/ 6he formua is

&,

http://www.allbusiness.com/glossaries/common-stock/4948841-1.html?lc=int_mb_1001http://www.allbusiness.com/glossaries/shares-outstanding/4954094-1.html?lc=int_mb_1001http://www.businessdictionary.com/definition/net-income.htmlhttp://www.businessdictionary.com/definition/outstanding-shares.htmlhttp://www.businessdictionary.com/definition/outstanding-shares.htmlhttp://www.businessdictionary.com/definition/share.htmlhttp://www.businessdictionary.com/definition/held.htmlhttp://www.businessdictionary.com/definition/stockholder.htmlhttp://www.businessdictionary.com/definition/stockholder.htmlhttp://www.businessdictionary.com/definition/shareholder.htmlhttp://www.allbusiness.com/glossaries/common-stock/4948841-1.html?lc=int_mb_1001http://www.allbusiness.com/glossaries/shares-outstanding/4954094-1.html?lc=int_mb_1001http://www.businessdictionary.com/definition/net-income.htmlhttp://www.businessdictionary.com/definition/outstanding-shares.htmlhttp://www.businessdictionary.com/definition/share.htmlhttp://www.businessdictionary.com/definition/held.htmlhttp://www.businessdictionary.com/definition/stockholder.htmlhttp://www.businessdictionary.com/definition/shareholder.html


36/71

'+

4ame of

"ank

!008

2@3

!009

2@3

!00

2@3

!0

2@3

!0!

2@3

Avera

ge

2@3

/ndust

ry

Avera

ge

-""L ).7 ).7 0 0.80 .*0 8.7*

*.!

@

P"L #/'. -/%. +/-. #/-. &/&& '.9'

""L

#.9)

!.9'

).0)

'.!9

.#!

#.)

/"L '.## '.)9 '.'* '.8' '.'! '.)#(/"L !.98 #.9 '.*) !.0 #.*! #.'*

A/"L

#.7!

!

'.'

#.7#

!.#8

#.9

Table # 0: &arnings er Share.

Interpretations:

atio Anaysis for the Earnin*s per Share shows that the industry avera*e is @/1"/ Amon* the

si seected 0anks a DBBL is in the 0est position with havin* a earnin*s per share is 2/'@

0ecause of the num0er of outstandin* shares increased tremendousy in ast two years/ Whereas

a other three 0anks are havin* an E3S of 0eow industry avera*e that is ,/$, for 3BL. &/-1for

BBL for !BL ,/-& for A!BL is &/1$./ 6he positionof these 0anks is shown in a *raph 0eow:

&-


37/71

',

0

2

4

6

8

10

12

14

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)

sa,"a" 'an)

"-ra&aIs"ami 'an)

Chart ( 0): &arnings er Share.

#/'2i9uidity ratio

Li4uidity ratios measure the 0ank a0iity to meet its short%term o0i*ations/ Banks face i4uidity

pro0em due to ecess withdrawa from current and savin* account/ 6here are severa measures

of i4uidity/ Li4uidity position of 0anks is measured 0y usin* four foowin* ratios/

&@


38/71

'-

#/'/1 Current atio @C6he ratio is mainy used to *ive an idea of the 0ankMs a0iity to pay 0ack its short%term

ia0iities with its short%term assets investorwords. 1$$2C/ 6he hi*her the current ratio. the more

capa0e the 0ank is of payin* its o0i*ations/

4ame of

"ank

!008 !009 !00 !0 !0! Avera

ge

/ndustr

y

Average

-""L .7 .9

.!)

.' .! .7

*.'0P"L .' .0).09

.0! .0! .0*

BB2

.0#

!.)0

!.#!

#.*0

!.'0

!.#7

/"L .09 .! .09 .08 .* .(/"L .'9 #.09 #.#7 #.!8 .0 !.')

A/"L

#.0)

#.9

#.#0

!.97

!.8'

#.07

Table # 0: Current %atio.

Interpretations

Accordin* to resut the current ratio the industry avera*e is @/,#/ Which mean the industry has

11/-1 taka of currents assets a*ainst 1 taka of short term de0t or ia0iityP !t means the industry

has the a0iity to pay off its current ia0iities with its current assets/


39/71

'%

they invested ess in short term assets/ Gn the other hand !BL and BBLis 1/11 and "/&' times

respectivey/ !n fact the hi*her the current ratio is 0etter for the institution 0ecause this hi*her

ratio heps to prevent *ettin* defaut/ 6hus SF!BL is in the 0etter position to prevent *ettin*

defaut/

0

2

4

6

8

10

12

14

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)

sa,"a" 'an)

"-ra&aIs"ami 'an)

Chart ( 0+: Current %atio.

#/'/& Current Asset atio @CA

6he current assets ratio measures a companyMs a0iity to pay the ia0iities that it is most ikey to

have to pay soon with that assets that shoud yied cash the 4uickest/ 6he


40/71

'$

-""L 8.'* 8.# 9.9' 8.** !.0* 9.')

).7

@

P"L 7.8 7.## ).!8 *.87 *.#8 *.7#

""L

0.#7

!.8'

.'9

.'0

*.*'

!.))

/"L #.)7 #.'7 .8 0.'# 8.** .)9

(/"L !0.88 7.8! *.) *.)0 9.)* *.8

A/"L

*.!

7.)

).*#

*.87

8.'9

*.9!

Table # 10:Current *sset %atio.

Interpretations:

Accordin* to resut the current asset ratio the industry avera*e is 1-/1'/ Which mean the

industry has 1-/1' taka of currents assets a*ainst 1 taka of short term de0t or ia0iity/ !t means

the industry has the a0iity to pay off its current ia0iities with its current assets/


41/71


42/71

#1

-""L *8.79 )9.' **.7' *'.*! )8.77 **.*7

7'.)#

@

P"L 7!.89 7'.08 7'.*7 7#.98 7!.08 7#.)8

""L

7!.89

79.!#

78.0#

7*.07

7).90

7*.'!

/"L 79.* 78.') 80.#0 7*.' 7).'! 78.0

(/"L 7'.*# 7'.* 78.9 7*.*# 7'.*) 7).7'

A/"L 7'.*!

7'.'8

7!.'0

7!.79

7.'!

7#.'

Table # 11: 3oan %atio.

Interpretations:

Accordin* to resut the 6ota Loans to tota asset ratio+s industry avera*e is ',/-&.which mean

that the industry has used their assets of 1## 6aka to *ive ',/-& taka vaued oans/


43/71


44/71


45/71

##

0

20

40

60

80

100

120

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)

sa,"a" 'an)

"-ra&aIs"ami 'an)

Chart ( 0: Total 3oans To 4eposits.

#/#/& Interest ate isk atio

!nterest ate isk in the dan*er that shiftin* interest rates may adversey affect a 0ank+s net

income. the vaue of its assets or e4uity/6he risk that an investmentMs vaue wi chan*e due to a

chan*e in the a0soute eve of interest rates. in the spread 0etween two rates. in the shape of the

yied curve or in any other interest rate reationship/

#/#/&/1 Interest Sensitive Gap

!nterest sensitive assets to interest sensitive ia0iities or repica0e assets to ia0iity shows that

portion of !nterest sensitive assets for interest sensitive ia0iity/6o achieve smooth runnin* for

the or*ani?ation 0anks must have hi*her per cent of retracea0e asset to ia0iity ratio/

,,


46/71

#+

4ame of

"ank

!007

2@3

!009

2@3

!00

2@3

!0

2@3

!0!

2@3

Avera

ge

2@3

/ndustr

y

Average

-""L 88.8* 8*.88 8).'! 89.!) 89.90 88.0*

88.0#

@

P"L

9.0*

88.*

8#.78

8.89

80.!)

8).0!

""L 90.') 87.08 9.)* 8).09 8.*7 87.7/"L 87.)# 88.! 8*.') 88 88.90 87.08

(/"L 0!.8

*

0#.*

*

0.7

7

0!.)

'

0#.

*

0!.*

0

A/"L 89

89.78

87.'!

8*.)#

89.)#

88.')

Table # 1: nterest Sensiti5e 6*sset73iabilities8.

Interpretations:

Accordin* to resut the !nterest Sensitive Asset to !nterest Sensitive Lia0iities the industry

avera*e is 22/#& or #/22.which mean that the industry is ia0iity sensitive that is they have ess

interest sensitive asset then interest sensitive ia0iity/


47/71

#,

0

20

40

60

80

100

120

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)

sa,"a" 'an)

"-ra&aIs"ami 'an)

Chart?1.! Interest Sensitive Gap

#/#/' Price risk

Especiay to these market vaue movements are 0ond. portfoios and stockhoders+ e4uity. which

can dive suddeny as market prices move a*ainst a financia firm !nvestopedia/com. "##1C/

(arket vaue ratios reate the o0serva0e market vaues ike the stock price with the 0ook vaues

o0tained from the firmMs financia statements/

#/#/'/1 Price )arnin(s atio @P) atio

3rice earnin*s ratio shows how much an investor is wiin* to pay per taka of reported profit/ !t is

cacuated 0y dividin* the stock price per share 0y the earnin*s per share E3SC Leicon/ft/com.

"###C/ 6he formua is *iven 0eow:

,@


48/71

#-

4ame of

"ank

!008

Times

!009

Times

!00

Times

!0

Times

!0!

Times

Avera

ge

Times

/ndustry

Average

-""L 78.70 #'.'0 !!.90 ) 9.90 #!.8

#.

Times

P"L !.88 9.'7 *.*0 8.#' !.'* .9)

""L

9.)7

.0'

*.9)

8.87

0.80

#.')

/"L 0.78 !.87 #.!9 .!7 9.*8 .)8

(/"L 8.)) !.!' #. ).'8 9.7 .7

A/"L

9.)#

.!#

#.!'

0.#

0.!

0.89

Table # 1$: 7& %atio.

Interpretations:

Accordin* to the anaysis of 3rice Earnin*s atio the industry avera*e is 1&/11 times.which

mean that the industryinvestors are wiin* to pay 1&/11times per taka of reported profit/


49/71

#%

0

10

20

30

40

50

60

70

80

90

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)

sa,"a" 'an)

"-ra&aIs"ami 'an)

Chart ( 11: rice &arnings %atio.

#/+Capital ade9uacy ratio

6his ratio is a measure of a 0ankMs capita/ !t is epressed as a percenta*e of a 0ankMs risk

wei*hted credit eposures/ 6his ratio is used to protect depositors and promote the sta0iity and

efficiency of financia systems around the word/ !t is aso known as Q>apita to isk Wei*hted

Assets atio >AC/Q

#/+/1 )9uity ratio

E4uity atio indicatin* the reative proportion of e4uity used to finance a companyMs assets

eadyratios/com. "###C/ 6he E4uity ratio measures the proportion of the tota assets that are

financed 0y stockhoders and not creditors/ A ow e4uity ratio wi produce *ood resuts for

,2

http://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Equity_(finance)


50/71


51/71

+.

0

2

4

6

8

10

12

14

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)sa,"a" 'an)

"-ra&aIs"ami 'an)

Chart ( 12: &'uity %atio.

#/, ther0inancialratios

#/,/1 ate o0 eturn on 2oans

6his ratio indicates the rate of return on oans means in which rate the 0orrowers of oan return

their oans/ Fi*her rate of return for a company means 0etter the position of i4uid assets

!nvestopedia. "###C/ So that 0anks can further end money and earn interest incomes/

-#


52/71

+1

4ame of

"ank

!008

2@3

!009

2@3

!00

2@3

!0

2@3

!0!

2@3

Avera

ge

2@3

/ndustry

Average

-""L .97 !.#) !.9* !.7 !.)! !.)0

#.0#@

P"L !.99 !.77. #.!' #.'9 #.#) #.7

""L .08 .#* !.#7 !.) .8) .8#

/"L 0.8* 0.79 0.99 0.8 0.89

(/"L #.87 #.0# !.8* #.'# #.*! #.#*

A/"L

0.8)

.)0

!.#'

.7!

0.9

.'*

Table # 1+: %ate of %eturn on 3oans.

Interpretations:

Accordin* to the anaysis of rate of return on oans the industry avera*e is &/#&.which mean

that the Borrowers have returned &/#& of their tota oans/


53/71

+&

0

05

1

15

2

25

3

35

4

45

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)

sa,"a" 'an)

"-ra&aIs"ami 'an)

Chart ( 1: %ate of %eturn on 3oans.

#/,/& 2oan to Assets atio

Loan to asset ratio is used to measure the reation of the 0ank+s oan portfoio to the tota

assets/Fi*h Noans to assets+ ratio mi*ht mean two thin*s:

Bank is at hi*her risk 0ecause oans are ess i4uid assets than other financia assets/

Loans usuay are the most profita0e assets of the 0ank. and it is hi*hy epected that

0ank with hi*h Noans to assets ratio+ wi have hi*her Nnet interest income+/

-"

2oan to Asset atio Total 2oansTotal Asset

http://www.investingforbeginners.eu/liquidityhttp://www.investingforbeginners.eu/liquidityhttp://www.investingforbeginners.eu/financial_assetshttp://www.investingforbeginners.eu/net_interest_incomehttp://www.investingforbeginners.eu/liquidityhttp://www.investingforbeginners.eu/financial_assetshttp://www.investingforbeginners.eu/net_interest_income


54/71


55/71

+#

0

10

20

30

40

50

60

70

80

90

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)

sa,"a" 'an)

"-ra&aIs"ami 'an)

Chart ? 1#! 2oan To Asset atio

#/,/' Total 5ebt to )9uity atio

6he de0t%to%e4uity ratio is a financia ratio indicatin* the reative proportion of entityMs e4uity

and de0t used to finance an entityMs assets


56/71


57/71

+,

0

5

10

15

20

25

30

35

40

45

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)

sa,"a" 'an)

"-ra&aIs"ami 'an)

Chart ( 1): 4ebts to &'uity %atio.

#/,/# 5ebt to assetatio

De0t ratio is a ratio that indicates the proportion of a companyMs de0t to its tota assets/ !t shows

how much the company reies on de0t to finance assets !nvestorwords/com. "###C/ 6he de0t

ratio *ives users a 4uick measure of the amount of de0t that the company has on its 0aance

sheets compared to its assets/ 6he hi*her the ratio. the *reater the risk associated with the firmMs

operation/ A ow de0t ratio indicates conservative financin* with an opportunity to 0orrow in the

future at no si*nificant risk/ 6he formua for cacuatin* de0t ratio is R

-@


58/71


59/71

+%

0

10

20

30

40

5060

70

80

90

100

ut% 'ang"a 'an)

prime 'an)

*ra% 'an)

Is"ami 'an)

sa,"a" 'an)

"-ra&aIs"ami 'an)

>hart%1@: De0ts to Asset atio/

-2


60/71

+$

Chapter! +

+/1 8indin(s o0 theprojectata(lance

After doin* the ratio anaysis on the seected traditiona and !samic Banks. ! have found too

many thin*s reatin* to my 3ro)ect topic “A comparative analysis between General Commercial

Banks and IslamicShariah Banks”. 0ut everythin* is not possi0e to show in this report/ 6hus !

have summari?ed the overa ratio anaysis in a Sin*e ta0e it is *iven 0eow:%

1atio 4ame

*an)s er&orman%e on an verage

&rom

2008-2012

ut%

*ang"a

rime

*an)

*ra%

*an)

Is"ami

*an)

(a,"a"

*an)

I

ra&a

*an

1 Return on Equity 2918F 2087F 168

7F

1725

F

2244F 201

2 Return on sset 178F 198F 129F

134F 2F 192

3 Net Interest argin 392F 264F 256

F

385F 329F

4 Net :perating

argin

357F 325F 402

F

287F 35F 353

5 Earnings er (are 876F 494F 351

F

453F 346F 319

*. Current

1atio%times&

117F 106F 237

F

111F 1245F 307

7 !urrent sset Ratio 945F

673F

125

5F

1159

F

1618F 692

8 oan Ratio 6667F 7358F 764

2F

781F 7574F 731

-$


61/71

,.

9 oans to eposit

Ratio

7593F

8585F 872

5F

8916

F

9682F 942

10 I( sset to ia'i"ity

Ratio

8806F 8502F 871

7F

878F 1026F 884

. P6E 1atio

2'imes&

3218F 1195F 134

5F

1158

F

1171F 108

12 Equity Ratio 633F 115F 75F 715F 794F 949

13 Rate o& Return on

oans

25F 317F 183

F

089F 336F 146

14 oan to ssets 6365F 711F 677

5F

78F 755F 731

15 e't to Equity 2508F 1023F 1292F

1311F

1318F 832

16 e't Ratio 9335F 9107F 921

4F

9285

F

9174F 804

Table &.! 8indin(s at a Glance/

+/&Per0ormance indicator

Based on the ratio anaysis the performance indicator is se*mented into five cate*ories/ 6hese are

summari?ed 0eow:

+/&/1 Pro0itability

!n terms of profita0iity. the performance 0etween traditiona and !samic Banks is ceary

indicatin* that *enera commercia 0anks are doin* tremendous work compare to the !samic

0anks/ Like the return on e4uity and net interest mar*in shows the proof of my statement/ Durin*

the anaysis ! have found that !>B !samic Bank in their financia statement is too much

fuctuatin* in fi*ures/ 6hus the resut varies too much/

@#


62/71

,1

6he reasons for hi*h profita0iity prospect 0y !>B !samic Bank indicate the various interna and

eterna factors that are directy or indirecty infuencin* their performance/ 6hese reasons are

summari?ed 0eow:

By ookin* at the GA of !>B !samic 0ank we can say that their mana*eria efficiency is

up to the mark and eacty e4ua to the industry avera*e/

6he rate of return fowin* to the sharehoders is another factor that indicates hi*her

profita0iity/

Fi*her return on asset directy indicates the fact that they are doin* we enou*h to run

their 0usiness with accepta0e eve of profit/

Another reason of havin* profit is hi*her interest revenue compare to the interest

ependitures/

B! have fair enou*h i4uidity compare to the

*enera commercia 0anks in case of Loan ratio. current asset ratio as we as current ratio/ !n

every case the outcome of this 0ank which is representin* !samic 0anks is hi*her than the

industry avera*e/

!n terms of i4uidity. the !samic 0anks of Ban*adesh are doin* a tremendous )o0 compare to the

*enera commercia 0anks/ 6he reasons are summari?ed 0eow:


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,&

By ookin* at the ratio anaysis we can easiy comments that in terms of the current

ratio. current asset ratio and oan ratio. !samic 0anks are *oin* faster than the *enera

commercia 0anks/

6hey are havin* enou*h cash on their hand compare to the deposits as we as they

are providin* more oans to the 0orrowers compare to the deposits in a 0aanced way/


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,'

+/&/+ thers

6hrou*h the oan and de0t reated ratios. the performance comparison is done smoothy. where

differences can 0e identified easiy/ !s case of return on oan and de0t to e4uity. the *enera

commercia 0anks are far ahead of !samic 0anks/ Gn the other hand !samic 0anks are far ahead

of *enera commercia 0anks in case of oan to asset and de0t ratio/ But in reaity they are

tremendousy 0ehind from *enera commercia 0anks/ As 0ecause they may 0e hi*her in num0ers

in outcomes 0ut that was ne*ative measures that a**in* them 0ehind/

6he proportions of net interest income to tota oans are hi*her in terms of the *enera

commercia 0anks/ Because =enera commercia 0anks a0e to coect their interest

incomes propery. this is o0viousy hi*her than the tota interest ependiture/ 6he *enera commercia 0anks are havin* enou*h assets incudin* tan*i0e as we as

intan*i0e to cover up the overa oans compare to the !samic 0anks/


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,#

0ecause in our country ma)ority peope are (usim. !samic 0ankin* has an opportunity to *ear

up their 4uaity of services and *ra0 maimum amount of market shares/ 6o compete in this

competitive market with *enera commercia 0ankin* system they must have ade4uate capita/


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,,

*.# "i%liography

A Arafah Bank. "##2."##$."#1#."#11."#1"/ Annual Report / Dhaka: A Arafah Bank/

Answers/com. "##'/ Deinition o !et Interest "ar#in/ KGnine Avaia0e at:

www/answers/comtopicnet%interest%mar*in%1 KAccessed 12 howdhury. A/. "##"/ 3oitics. Society and ommerciaa ! Ban*adesh/ Sonali

Bank . 111#1C/

Fumhery. B/5/. 1$$'/ Efficiency of


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,-

!nvestin*answers/com. "##-/ Deinition o Return o )+uity/ KGnine Avaia0e at:

www/investin*answers/comfinancia%dictionaryfinancia%statement%anaysisreturn%e4uity%roe%

$1@ KAccessed 12 ontet of Ban*adesh Bankin*

!ndustry/ ABAC . "'"C/

@'

http://var/www/apps/conversion/tmp/scratch_3/www.investinganswers.com%2Ffinancial-dictionary%2Ffinancial-statement-analysis%2Freturn-equity-roe-916http://var/www/apps/conversion/tmp/scratch_3/www.investinganswers.com%2Ffinancial-dictionary%2Ffinancial-statement-analysis%2Freturn-equity-roe-916http://var/www/apps/conversion/tmp/scratch_3/www.investopedia.com%2Fterms%2Fn%2Fnet_margin.asphttp://var/www/apps/conversion/tmp/scratch_3/www.investopedia.com%2Fterms%2Fe%2Feps.asphttp://www.investopedia.com/terms/a/asset-liability-committee.asphttp://var/www/apps/conversion/tmp/scratch_3/www.investopedia.com%2Fterms%2Fc%2Fcommodity-price-risk.asphttp://www.investopedia.com/terms/p/profitabilityratios.asphttp://www.investopedia.com/terms/w/workingcapital.asphttp://www.investopedia.com/articles/fundamental/04/012804.asphttp://var/www/apps/conversion/tmp/scratch_3/www.investopedia.com%2Fterms%2Fr%2Frateofreturn.asphttp://var/www/apps/conversion/tmp/scratch_3/www.investopedia.com%2Fterms%2Fl%2Floan-to-deposit-ratio.asphttp://var/www/apps/conversion/tmp/scratch_3/www.investorwords.com%2F1326%2Fdebt_ratio.htmlhttp://var/www/apps/conversion/tmp/scratch_3/www.investorwords.com%2F1326%2Fdebt_ratio.htmlhttp://var/www/apps/conversion/tmp/scratch_3/www.investorwords.com%2F1258%2Fcurrent_ratio.htmlhttp://var/www/apps/conversion/tmp/scratch_3/www.investinganswers.com%2Ffinancial-dictionary%2Ffinancial-statement-analysis%2Freturn-equity-roe-916http://var/www/apps/conversion/tmp/scratch_3/www.investinganswers.com%2Ffinancial-dictionary%2Ffinancial-statement-analysis%2Freturn-equity-roe-916http://var/www/apps/conversion/tmp/scratch_3/www.investopedia.com%2Fterms%2Fn%2Fnet_margin.asphttp://var/www/apps/conversion/tmp/scratch_3/www.investopedia.com%2Fterms%2Fe%2Feps.asphttp://www.investopedia.com/terms/a/asset-liability-committee.asphttp://var/www/apps/conversion/tmp/scratch_3/www.investopedia.com%2Fterms%2Fc%2Fcommodity-price-risk.asphttp://www.investopedia.com/terms/p/profitabilityratios.asphttp://www.investopedia.com/terms/w/workingcapital.asphttp://www.investopedia.com/articles/fundamental/04/012804.asphttp://var/www/apps/conversion/tmp/scratch_3/www.investopedia.com%2Fterms%2Fr%2Frateofreturn.asphttp://var/www/apps/conversion/tmp/scratch_3/www.investopedia.com%2Fterms%2Fl%2Floan-to-deposit-ratio.asphttp://var/www/apps/conversion/tmp/scratch_3/www.investorwords.com%2F1326%2Fdebt_ratio.htmlhttp://var/www/apps/conversion/tmp/scratch_3/www.investorwords.com%2F1258%2Fcurrent_ratio.html


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Ohan. (/6/A/. "#1,/ $u#e Demand orIslamic Bankin# In Ban#ladesh/ !samic


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