Finance Internship

7/24/2019 Finance Internship

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I dedicated this report to my beloved mother without her encouragement and support I was not

able to achieve this goal. . For me accomplish this task within the specific time limit. I was

provided with every facility by my mother who was necessary in order to complete thischallenge assignment.

I am very thankful to Almighty Allahthe most beneficent, the most mercy full who has given

the strength to complete this task. I am also thankful to branch manager and operational managerrespectively of the bank of the Punjab circular railway road sheikhupura. Without whose

guidance and support it would not have been possible for me to accomplish this assignment.

Furthermore, I am indebted to the staff of the staff of the Bank of the Punjab. From whom I have

gained much eperience regarding operational work of bank is concerned.

!he last but not the last I convey my credit and thankfulness to the virtual universities"uthorities. Without whose well in time support and guidance it would be much difficult for me

to achieve this task successfully

!he bank of Punjab #B$P% established in &'(' and got the status of scheduled bank in &''). !he

bank of Punjab offer number of products in their customer. !here are *'+ branches of B$P in the

whole country. Functionally the bank of Punjab is divided in the division and the each division is

headed by the general managers

!he government of the Punjab holds the majority of the shares in B$P. It is doing business in

commercial banking and the retail banking. orporate banking treasury and investment and trade

finance. !he shares of B$P are traded in all three stock -changes of the Pakistan.


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y internship program period is + rd/anuary *0&1 to &)thFebruary *0&1. 2uring internship, I

worked in "ccounts opening 2epartment, "ccounts 2epartment, learing 2epartment,

3emittance 2epartment, "dvance and redit 2epartment and Bill for ollection 2epartment.

"s for as the different ratios of the Bank $f the Punjab, they all give the healthy sign regarding

financial position of the Bank as well as the operation results of the different financial years. "ll

ratios are fully in accordance with the banking industry4s standard and norm which is a yard stick

to measure the performance of any bank. !hese ratio depict and indicate that the financial

strength of the on a higher side and further prospect of the Bank is brighter.

"t the end the conclusion and the recommendations are the part of the report. Bibliography is thepart, which contain all the references from I, obtained data to prepare this report

Section Description

1 Title page

2 Letter of undertaking

3 Internship certicate

4 Dedication

5 Acknowledgement

6 Executive summary

7 Tale of contents

8 !rief introduction of the organi"ation#s

usiness sector

9 $verview of the organi"ation

Brief history


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Organizational hierarchy chart

Business volume

Prouct ! services

"om#etitors

Brief introuction of all e#artments

Organizational structure

1$ %lan of internship program

Brief introuction of %ranch

&tarting! 'ning ate of internshi#

(raining uration an e#artments

11 Training program

)ccount o#ening e#artment

*emittance e#artment

"learing e#artment

12 Learning experience

+no,lege gain

&-ills learne

)ttitue learne .value gaine

/ost challenging tas- #erforme

13 &atio analysis

14 'uture prospects of the organi"ation

15 (onclusion

16 &ecommendations for improvement

17 &eference and sources used

18 Annexes


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Ban-ing #lays a ma0or role in a countrys economy )fter #artition of nia

an Pa-istan British governments commission istri%ute the reserves

%et,een Pa-istan an nia

In "ugust &')5, various Banks transferred their head6uarters and funds to India. Before partitionof Pak7o78ind, some Banks were operated which were hartered Bank, 9rind7lays Bank,

Imperial Bank of India, "ustralasia Bank and 8abib Bank. "fter the independence of Pakistan,

uslim ommercial Bank :imited, Bank of Bahawalpur :imited, Punjab ;ational Bank and

;ational Bank of Pakistan were providing banking facilities to general public.

!he


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History

!he Bank of Punjab started functioning with the inauguration of its first branch of 57-gerton

3oad, :ahore on ;ovember &1, &'('. !he founder of the bank r. ;awa=


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Vision and Mission statement

Vision Statement

>!o be a customer focused bank with service -cellence?

Mission Statement

>!o eceed the epectation of our stakeholders by

:everaging our relationship with the government of

Punjab and delivering a complete range of professional


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!usiness ,olume

Total +umer of Stock -olders

irectors $

Provincial overnment 269686662

)ssociate "om#anies $

oreign &hareholers 375676$9

niviuals 62526255

nsurance "om#anies./oara%a /utual

uns

3299354$

easing "om#anies 9577$1

"harita%le (rust 273911

"oo#erative &ocieties 16$11

" :nits 32$56$7


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"P 99$$

;oint &toc- "om#anies 19846888

Others 1$1713292

Total numer of shares ./012301425

%roduct Line

Deposits %roducts

"urrent )ccount

Basic Ban-ing )ccount

(i0arat )ccount


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"urrent )ccount

Basic Ban-ing )ccount

(i0arat )ccount

"or#orate Premium )ccount

Consumer Finance

!ypes of consumer finance offered by Bank of Punjab areA

"asaih :oan uick ash

ar :oan

8ouse :oan


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3unning Finance

ash Finance

2emand Finance

;9 Filling


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Gtility Bills

:ocker

!reasury

Western union oney !ransfer

Agriculture Credit

"griculture credit is provided to the farmers and livestock organi=ations.

Bank of Punjab provides following agriculture loans with a specific markup rateA

9reen !ractor :ease Finance

"gri Finance Branch

"gri Finance


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lean redit Facility through


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!he departments and divisions of Bank of Punjab are as followsA

3etail Banking 2ivision


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%etail Banking $iision

3etail banking division of the bank deals with the customers and eecutes their transaction

directly. It provides the services of saving account, mortgage loans, personal loans, debit cards,

accounts checking, credit cards, "! cards.

S"ecial Assets Management $iision

!he Bank will invest on behalf of its clients and give them access to a wide range of traditional

and alternative product offerings that would not be to the average investor. It includes the

automatic sweep of cash balances into a money market fund, as well as brokerage services.

Credit Administration $iision

In this division, banks deals with the credit, banks give loans to individuals and to the

corporations.

Human %esource $iision

!his division performs the duty of hiring the employees, training the employees as well as

retaining the employees and if necessary, firing the employees.

Finance $iision

!his division controls the overall activities relating to finance i.e. monitoring the investment

activities, financing activities, 2ebit and redit of funds and reasons there of with proofs.

#n&ormation !echnology $iision


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!his department controls and record the data related with the bank. !he backup of all branches is

sent to I! department on daily basis.

O"erations $iision

In this division of B$P, lawyers are employee to solve the cases

!his division controls the whole operation of all the branches and controls the cash activities,

che6ues, account opening and other things about operations.

!raining' %esearch' Communication ( )u*lic $iision

!his division conducts research on new products, trains newly hired employees, train old

employees on new and innovative circulars in banking sector. It also provides training on

customer relation management.

Audit and #ns"ection diision

!his department of bank includes the "udit of all the branches they do audit of the branches and

give some opinions to eecute their transactions.

Functional Hierarchy o& the Bank o& )un+a*

i

*e#ort to

"hair#erson of Boar of

overnor

Presient of BOP

Presient

of BOP

ecial )ssets/anagement ivision

D*ivisio

n

"reit)ministration

ivision

*etailBan-ing

ivision

)uitivisio

n

nternational

ivision

inance

ivisio

n

*")

e#artme

nt

Du

%

"ommerci

al )ssets

/anagem

ent

"or#orate

)ssets

/anagem

ent

*egio

nal

(eams

*e#ort to

&tate Ban- of Pa-ista

*egions

)reas

Branches

*is-

/anagem

ent


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Comment on Organizational Structure o& Bank o& )un+a*

$iision o& ,a*or

!he structure of the Bank of Punjab is divided into division and these divisions are further

divided into departments. !his type of structure helps the management in controlling the

operations of the bank effectively. -ach division is responsible for its respective duties.

S"an o& Control


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outsie the city &o %an- of Pun0a% facilitating their customer %y given that

eEcellence of services an fully satis?es customers nee

Starting 7 ending dates of internship6

&tarting ate of internshi#A ;anuary 3r 2$15

'ning ate of internshi#A e%ruary 14th 2$15

Training duration and departments6

"ustomer services e#artment 3r ;anuary 2$15 to 2$th ;anuary2$15

*emittance e#artmentA 21n ;anuary 2$15 to 5th e%ruary 2$15

"learing e#artmentA 6th e%ruary 2$15 to 14th e%ruary 2$15

,or-e in three e#artments uring my internshi# #rogram ,hich are

follo,ingA

)ccount o#ening e#artment

*emittance e#artment

"learing e#artment

Account opening Department6

/y ?rst learning in this e#artment is that have gain is ,hat is the#roceure of account o#eningI Being an internee ,as not allo,e to o#en

the account for customer %ecause this tas- reGuire #rofessional eE#erience

/iss /amoona rauf is the in charge of this e#artment De guies me

regaring methos an #roceure of account o#ening also ?lle some

forms of account o#ening for the customers (here are many ty#es of

accounts are o#ene li-eH iniviual sole #ro#rietorshi# #artnershi#


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%usiness accounts com#anies account (here are "urrent e#osit account

saving account an ?Ee e#osit account

Process of account o#eningA

)ccount o#ening form inclues all the necessary information an etailsmust %e eEamine irst of all account o#ening form ?lle (here are i@erent

im#ortant information relate to form inclues account title mailing aress

contact num%ers an #ermanent aress (here is some #ersonal

information ,hich inclues gener marital status nationality country

a##licants name an father.hus%anJs name +no, your customer form is

also ?lle in ,hich value of transaction sources of fun an transaction

moe &ome ocuments are reGuire ,hich is follo,ingH #hotoco#ies of ""

#ass#ort size #hotogra#hs #hoto co#y of mother.father Js "" #ay sli#

stuent car an other ocuments accoring to accounts nature&& car on

,hich customers sign is reGuire is also attache ,ith form )t the enmangers signature an stam#e on the account o#ening form Khen all the

ocuments com#lete it sens to hea oFces

&emittance department6

have s#ent t,o ,ee-s in this e#artment n this e#artment have 0ust

o%serve the activities %ecause internees are not allo,e to #erform any

tas- /iss Dina is the inCcharge of this e#artment learne that remittance

can %e mae %yA

Pay orer

eman raft

"all e#osit recei#t


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Branch teller moule is a system ,hich use for issuance of #ay orer (he

#rocess of issuance of #ayment orer is follo,ingH

(eller receives fun transfer a##lication along ,ith cash from the client

than veri?es () to certify that all the com#ulsory information has %een

#rovie t is essential to count cash an verify that all the notes to %e realthan a##ens the cash receive stam# on () an %ring ac-no,legement

to client &o the a##lication is sent to BO for more #rocessing

f transaction amount eEcees the BOs limit than %ranch o#erational

manager a##roves the transaction BO uses Branch teller moule to issue a

#ayment orer &ince issuing the PO all etails of %ene?ciary must %e

entere in the system than com#lete the transaction an signs the PO ! ()

Demand draft6

eman raft is ra,n on the %ranch in ,hich it is %eing o@ereBO

#erform this uty (he %an- #rovies this facility to the account holers an

non account holer charges i@er for %oth t is mae in the favor of

remitter an %ene?ciary Dea oFce account ,oul %e e%it an remitter

account ,oul %e creit at the time of issuance )fter that hea oFce

account is e%it an remitter account ,oul %e creit at the #resente time

(all Deposit &eceipt6

"all e#osit recei#t is use for tener (he call e#osits are o@ere on the

agreement as assurance or safety from the %an- that money is e#osite in

the %an- t is mae in favor of contacting #arties or any other #erson (here

is no interest rate is a##lica%le to the customer "* has some relate

information li-e a##licant an %ene?ciary name account name amount

ate of issue an authorize signature (he authority letter sens for

collection in form of eman raft or #ays orer an call e#osit orer

(learing Department

s#ent t,o ,ee-s in clearing e#artment (his e#artment is uner the

su#ervision of /r (alha "ollection an #ayment of "heGues eman raft

an #ay orer is cleare in this e#artment )ll clearing relate ,or-ing is


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com#uterize (he clearing cheGues an sli#s are entere in the se#arate

leger

(he cheGues num%er an name of %ranch on ,hich is ra,n is must %e

chec-e (he cheGues are stam#e carefully a##ene %ecause sometimes

it has %een returne n,ar an out,ar clearing is main t,o ty#es ofclearing n,ar clearing is that in ,hich our %an-s cheGues are #resente in

other %an-s an out,ar clearing is that in ,hich other cheGues are

#resente in our %ranch ( is an agent carries n,ar "learing instruments

to the "entral Processing :nit


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learne many ne, s-ills %y the internshi# #rogram ,hich is very hel#ful for

o##ortunities of em#loyment an a%le to meet any com#etition

t hel#s to #re#are %oth %y giving us the eE#erience an s-ills to %uil astrong an the con?ence to give an outstaning intervie, Khen ,e iscuss

our -no,lege s-ills an a%ilities ,e can s#ea- from eE#erience not

con0ecture Ke im#rove our a%ility to ,or- uner #ressure %y internshi#

Our communication s-ills get %etter %y the ,or-ing in this organization

"ommunication ,ith manager an colleague ,ith remain our self in the loo#

of oFce communications (eam ,or- s-ills im#rove %y the ,or-ing ,ithin

many #eo#le Khen ,e tal- ,ith i@erent -in of customers our

communication s-ills ,oul %e im#rove

(he a%ility to ealing customer ,oul im#rove /y #ro%lem solving

techniGues also im#rove %y the internshi# #rogram an im#roves ,ritten

an ver%al s-ills By the nternshi# #rogram gain a lot of -no,lege an

eE#erience for success in future an im#rove the inter#ersonal s-ills

Attitudes $served9,alues :ained6

got the #ractical eE#erience a%out ho, to ,or- in an organization t gives

me the o##ortunity to sha#e my %ehavior attitue an my thoughts learntthe eE#ert attitue of the #eo#le %y internshi# #rogram

t is necessary to -no, the im#ortance of our e@ort an time %ecause

stuents have no value of time in stuent life n reality #rofessional life is

i@erent from stuent life Ke act li-e #rofessional Be #leasing an #olite

attitue is one of the im#ortant factor for successful em#loyment +no,

,hen to listen an ,hen to s#ea- "ontri%ute to the formal an #rouctive

em#loyment ont etract from it Ke manage our self in moments of

stress maintain a #ositive attitue

Dar ,or-ing em#loyees are ca#ital of organization an are incline to ,i#e

o@ on all an it has #ositive im#act on all over the association Khen ,e

sho, the enthusiastic attitue to,ars colleague than it ma-es goo

atmos#here at this ,or- #lace


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learne ne, techniGues regaring this ?el Punctual attitue is %est for

#rofessional life o, am ca%le to ,or- ,ith eFciently an e@ectiveness so

,e can sho, res#onsi%le an coo#erative attitue

*ost challenging task performed6

(he illing of account o#ening is very challenging tas- to me %ecause face

some iFculties at the %eginning &ome errors are occurs re#eately li-e

over ,riting omitting some ?els unintene s#ell mista-es %ecause

everything is totally ne, to me But ,ith the #assage of time learne much

a%out the ,hole tas-

In order to analysis the financial performance of the bank, investors and management use the

ratio analysis in which following ratios are calculatedA

-. /et "ro&it Margin

#ntroduction

;et profit margin is the percentage of revenue remaining after all operating epenses,

interest, taes and preferred stock dividends have been deducted from company4s total

revenue.

Formula0

;et profit marginJ ;et profit after taEnet


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J;et profit after taEnet


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#ntroduction

9ross spread ratio looks at the spread of interest between borrowing and lending. Banks

make money by borrowing short7term money from depositors and then using these fundsto make long7term loans to businesses, consumers and homeowners. $ne way to analy=e

gross profit rates of banks is to look at the spread between the loan rates and deposit

rates. Further, through ratio analysis, you can use the gross spread ratio to determine theprofitability, li6uidity and leverage of a bank

Formula0

9ross spread ratioJspreadErevenueK&00


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9ra"hical %e"resentation0

#nter"retation

(he gross s#rea ratio of BOP is 868L 1658L! 3$47L in years 2$12

2$13 ! 2$14t is vie,ing that the gross s#rea ratio of BOP is not constant

an is going to increase ay %y ay ue to ecrease in interest eE#enses

(his ratio ,as lo, in 2$12 %ut ue to ecrease in interest eE#enses an

increase in 2$13 an 2$14 that is a goo sign for the BOP

4;+on interest income to total income ratio

#ntroduction

Non Interest / Total Income ratio measures the proportion of bank's total

income that have been generated by non-interest related activities (e.g. fees

and commission, trading gains, fore activities etc.

Formula0

;on interest income to total income ratioJ;on interest incomeEtotal incomeK&00

!otal incomeJ interest income O interest earned

Calculation0


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12-1 12-3 12-4

;on interest incomeJ+,&'0,5)1

!otal IncomeJ17'5


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#nter"retation

(his gra#h is sho,s that the non interest income to total income ratio of BOP

for the year of 2$12 is 1145L an for the year of 2$13 it is 1292L ! in

2$14 it is 863L t is sho,ing that this ratio of BOP is not constant in all

over the years t inicates that non mar-Cu# income is ho, #ercent of totalincome of the BOP n 2$14 this ratio is lo, %ut in 2$12 an 2$13this ratio is

high it means in 2$14 BOP is not gaining more non interest income li-e

commission %ro-erage income ! income from ealing in foreign currencies

etc ue to ,hich this ratio is ecreasing in 2$14


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#nter"retation

(he s#rea ratio of BOP is 1$9 119 !143 times for three years

res#ectively t is sho,ing that the s#rea ratio of BOP is not constant an

increasing ay %y ay (his ratio is much high in 2$14t is sho,ing that the

interest eE#enses in 2$12 an 2$13 are more than 2$14 that is %ecoming

cause the ecrease the ratio in these years

.;&eturn on assets

#ntroduction

An indicator of how profitable a company is relative to its total assets. ROA gives an

idea as to how efficient management is at using its assets to generate earnings.

Calculated by dividing a company's annual earnings by its total assets, ROA is displayed

as a percentage. Sometimes this is referred to as "return on investment".

Formula0

3eturn on assetsJ;et profit after taE"verage total assetsK&00

Calculation0


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12-1 12-3 12-4

;et profit after taJ &,L++,()&

"verage !otal "ssetsJ&LL,011,1*5

J ;et profit after taE !otal assets

K&00

J&,L++,()&E&LL,011,1*5K&00

J 0.'(M

2;856

;et profit after taJ &,'+(,005

"verage !otal "ssetsJ

&5L,+)',05*

J ;et profit after taE !otal

assets K&00

J&'&,'+(,005E&5L,+)',05*K&00

J &.0'M

-;286

;et profit after taJ*,5(5,))'

"verage !otal "ssetJ*&0&(10')

J ;et profit after taE !otal

assetsK&00

J*,5(5,))'E*&0&(10')K&00

+J&.+*M

-;316

=orking o& total assets0

!otal assets0

$etails 12-1 12-3 12-4

ash and balances with treasury banks

Balances with other banks

2ue from financial institutions

Investments

Islamic financing and related services

$perating fied assets

2eferred ta assets

$ther assets

!otal "ssets

&5,*'(,*1&

+,&0&,&50

&,1L*,')L

&*',1&(,'''

&)',L01,00*

+,)5+,)'&

&+,050,L&)

&),)(0,1(&

331'---'2


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ear *0&*A++*,&&&,01)E*J&LL,011,1*5

ear *0&+A +1*,L'(,&)1E*J&5L,+)',05*

ear *0&)A)*0,+50,&((E*J*&0,&(1,0')

9ra"hical %e"resentation0

#nter"retation

*eturn on assets ratio inicates that ho, the %an- can ma-e use of its assetsfor generating much #ro?t (he gra#h sho,s that the ratio is $98L 1$9L !

132L in the year 2$12 2$13! 2$14 res#ectively (his ratio sho,s varying

tren in assets an #ro?ts ,ith the #assage of time n 2$13 ! 2$14

organizations #osition is very ,ell %ut in 2$12 it is not goo (here are

increasing tren in 2$13 ! 2$14 %ut it ,oul %e ecrease in2$12t is

inicating that the management of BOP is not using its assets in an

#rofessional manner in generating earnings an revenues for the BOP

5; Du %ont returns on assets

#ntroduction

"n epression that breaks return on e6uity #3$-% down into three partsA profit margin,total asset turnover and financial leverage. It is also known as @2uPont "nalysis@.

Formula0


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2u Pont return on assetsJ #;et profitEnet sales%K#;et sales Eaverage total assets%K&00

Calculation0

Calculation0

12-1 12-3 12-4

;et incomeJ &,5)),11L

;et salesJ*),LLL,0*)

"verage !otal "ssetsJ &LL,011,1*5

J ##net incomeEnet sales%K

#net sales Etotal assets%%K&00

J ##&,5)),11LE*),LLL,0*)%K

#*),LLL,0*)E&LL,011,1*5

%K&00

J #0.0&0%K&00

J&.0+ M

-;23

;et incomeJ &,'&),5*0

;et salesJ *),**+,L1(

"verage !otal

"ssetsJ&5L,+)',05*


#net salesEtotal assets%%K&00

J ##&,'&),5*0E *),**+,L1(%K

#*),**+,L1(E&5L,+)',05*

J#0.0&0%K&00

J &.0(M

-;25

;et incomeJ *,()&,1+1

;et salesJ *',1&5,L5+

"verage !otal "ssetsJ*&0,&(1,0')


#net salesEtotal assets%%K&00

J ##*,()&,1+1E *',1&5,L5+%K

#*',1&5,L5+E*&0,&(1,0')%K&00

J #0.0&+%K&00

J &.+)M

-;34

=orking o& total assets0

!otal assets

$etails 12-1 12-3 12-4

ash and balances with treasury banks &5,*'(,*1& *+,(*0,(L) *+,L**,)&&


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Investments



2eferred ta assets

$ther assets

!otal "ssets

+,&0&,&50

&,1L*,')L

&*',1&(,'''

&)',L01,00*

+,)5+,)'&

&+,050,L&)

&),)(0,1(&

331'---'2


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#nter"retation

(he gra#h of u Pont return on )ssets ratio sho,s 1$3L 1$8L ! 1$3L in

the year 2$12 2$13! 2$14(his ratio sho,s varying tren in assets an

#ro?ts ,ith the #assage of time n 2$13 ! 2$14 organizations #osition is

very ,ell %ut in 2$12 it is not goo n 2$12 the management of BOP is not

using its assets in an eFcient manner ue to ,hich this ratio is ecreasing

an is not generating much revenue for BOP

2; &eturn on total e=uity

#ntroduction

(he amount of net income returne as a #ercentage of shareholers eGuity

*eturn on eGuity measures a cor#orationMs #ro?ta%ility %y revealing ho,

much #ro?t a com#any generates ,ith the money shareholers have

investe

Formula0

3eturn on total e6uityJnet profit after taEtotal e6uity

Calculation0


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12-1 12-3 12-4

;et profit after ta J &,L++,()&

!otal -6uityJ :'1::'8


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#nter"retation

(his ratio sho,s the #ro?ta%ility of %an- from the investors #oint of vie, t

reveals that ho, the %an- can generate its #ro?t %y the stoc-holers

investment (he return on eGuity ratio is 26$7 2374L !3271L for the

year 2$12 2$13 ! 2$14 res#ectively t is sho,ing that the ratio is very ,ell

year 2$12 an ecrease in year 2$13 (here are increasing tren in 2$14

,hich is goo signal for gaining more #ro?t

0; Det &atio

#ntroduction) ?nancial ratio that measures the eEtent of a com#anys or consumers

leverage (he e%t ratio is e?ne as the ratio of total e%t to total assets

eE#resse in #ercentage an can %e inter#rete as the #ro#ortion of a

com#anys assets that are ?nance %y e%t

Formula0

2ebt ratioJ!otal liabilitiesE!otal assetsK&00

Calculation0

Formula0

2ebt ratioJ!otal liabilitiesE!otal assetsK&00

Calculation0


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12-1 12-3 12-4

!otal liabilitiesJ3-8'738'


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!otal Assets

$etails 12-1 12-3 12-4

ash and balances with treasury banks



Investments



2eferred ta assets

$ther assets

!otal "ssets

&5,*'(,*1&

+,&0&,&50

&,1L*,')L

&*',1&(,'''

&)',L01,00*

+,)5+,)'&

&+,050,L&)

&),)(0,1(&

331'---'2


38/58

#nter"retation

(he gra#h is sho,s that the e%t ratio constant in all years ,hich is 96 Lts

sho,ing that BOP is using much e%t to ?nance its assets ts ratio is too

much ,hich is angerous signal for BOP #osition t nees to ecrease to its

e%ts %ecause high e%t sho,s the BOP has high ris- of efault ue to ,hich

investors ,ill not li-e the BOP

8. $e*t Dearnings ratio

Formula0

2ebt to e6uity ratioJ!otal liabilitiesE shareholders e6uity

Calculation0

12-1 12-3 12-4

!otal liabilitiesJ 3-8'738'


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J!otal liabilitiesE shareholders

e6uity

J 3-8'738'


40/58

#nter"retation

(his ratio sho,s the relationshi# %et,een %orro,erJs funs an o,nerseGuity (his ratio is not constant in all over the years n 2$12 the e%t is

negative ,hich is C51$2its sho,s that the %an- reucing its e%t to %oost

investment in future high cash No, sates 'very 47$7 ru#ee of long term

e%t is %eing %ac-e %y an investment of one ru#ee %y the shareholer (he

%an- utilizes 4$38 !47$7 ru#ees of e%t in 2$13 ! 2$14 res#ectively

>?; Time interest earned ratio

#ntroduction

) metric use to measure a com#anyMs a%ility to meet its e%t o%ligations t

is calculate %y ta-ing a com#anyMs earnings %efore interest an taEes


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12-1 12-3 12-4

-arnings before interest and

taJ 13'81:'5-2

Interest epenseJ **,1**,'&(

J-arnings before interest and

taE interest epense%

J13'81:'5-2E **,1**,'&(

J &.0L times

1;4

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Finance Internship