Assignment On
Private/ Commercial Bank (Annual Report)
Course Title: Working Capital Management
Course Code: FIN-406
Submitted to: Reshma Nowreen
Assistant Professor
Department of Finance
Submitted by:
Name ID
Md. Alvy Islam 20212101031
Montahim Hossain Rijbi 20212101036
Tanvir Hossain Mollah 20212101037
Al Rahat Mollah 20212101042
Jesika Afrin 20212101054
Rafia Haque Ananna 20212101074
Date of Submission: May 6, 2024
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Table of Contents
Chapter Page
Chapter 1 : Overview of Bank 3
Chapter 2 : Financial Statement 8
Chapter 3: Theoretical Aspects 12
Chapter 4 : Analysis of Current Ratio 13
Chapter 5: Comparative Analysis 21
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Chapter 1 : Overview Of The Bank
Dutch-Bangla Bank Limited (DBBL) is a prominent private commercial bank in Bangladesh,
established through collaboration between Dutch and Bangladeshi investors. It offers a wide
array of banking services such as retail, corporate, and SME banking, along with treasury
services. DBBL is renowned for its innovative digital banking solutions, notably its mobile
banking service called "Rocket." The bank has an extensive branch and ATM network across
Bangladesh and actively engages in corporate social responsibility initiatives. Overall, DBBL
plays a significant role in Bangladesh's banking sector, known for its modern banking
facilities and contributions to the country's socio-economic development.
History
Dutch-Bangla Bank Limited was established under the Bank Companies Act 1991 and
incorporated as a public limited company under the Companies Act 1994 in Bangladesh in
June 1996. It was a Dutch-Bangladesh joint venture and first Bangladeshi-European joint
venture of bank in Bangladesh. DBBL commenced formal operation from June 3, 1996. The
Bank is listed with the Dhaka Stock Exchange Limited and Chittagong Stock Exchange
Limited.
In November 2007, Md Yeasin Ali was reappointed managing director of Dutch-Bangla
Bank Limited.
In April 2015, robbers stole 318 thousand BDT from an ATM of Dutch Bangla Bank Limited
in Kushtia.
Robbers in Gazipur stole 12 million BDT from an ATM of Dutch-Bangla Bank. Abul
Kashem Md Shirin was appointed managing director of Dutch-Bangla Bank replacing KS
Tabrez in November 2016.
In June 2019, a group of foreign hackers stole 1.6 million BDT from ATMs of Dutch-Bangla
Bank in Dhaka. In June, it emerged that the bank lost 3 million USD to cyber-attacks which
also targeted NCC Bank Limited, and Prime Bank Limited. In July, Abedur Rashid Khan, a
director of Dutch-Bangla Bank Limited, transferred his shares of bank to Horizon Associates.
The Netherlands Development Finance Company sold their entire stake in Dutch-Bangla
Bank in November 2019.
Detective Branch arrested four people, including an IT personnel of Dutch-Bangla Bank
Limited, for embezzling 25.7 million BDT from the bank in June 2021.
In 2022, Dutch-Bangla Bank was one of nine banks that held 60% of the excess liquidity in
the Bangladeshi market.
In March 2023, 112.5 million BDT from a transport van of the bank in Uttara Model Town.
An agent banker of Dutch-Bangla disappeared from Kishoreganj District with 200 million
BDT in clients money.
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ATM network/DBBL Nexus participating banks
A DBBL Nexus ATM booth.
DBBL maintains its own network and automation. DBBL has over 4,930 ATM's installed all over
Bangladesh, making it the largest network in Bangladesh.[18][19] On 10 October 2010, DBBL
inaugurated its 1000th ATM at the factory premises of the GlaxoSmithKline, Chittagong.
Dutch Bangla Bank has first transformed the concept of branchless banking in the country by
introducing a huge numbers of ATMs in important places like airports, railway stations,
markets, shopping malls, university campuses, branch premises and important public places.
The numbers of ATM of the bank are increasing every day, every week and every month.
Now their valued customers can get an ATM within their footsteps.
While setting up the ATMs, the sites are selected considering many factors like easy
accessibility using different transports, wide and free space and density of the population in
surrounding area.
DBBL’s ATM fleet is equipped with famous NCR, Wincor and Diebold ATMs. All of the
ATMs are EMV-implemented (with chip) and thus highly secured. The prestige of having all
the ATMs EMV compliant was never been achieved by any bank in the Bangladesh before.
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However Dutch Bangla Bank ATMs are capable to accept both EMV and non-EMV cards.
The Dutch Bangla Bank ATM network has direct interface with the Bangladesh Bank
(Central Bank) and the 23 commercial banks of the country. Thus Dutch Bangla Bank ATMs
accept the following cards:
Dutch Bangla Bank's proprietary Nexus card
Bangladesh Bank's Proprietary Debit Card
Any MasterCard Debit, Credit, Maestro & Cirrus card
Any Visa Debit, Credit, Electron & Plus card
Prime Bank's Proprietary Debit Card
First Security Bank's Proprietary Debit Card
Other cards issued by the 23 partner banks
Dutch-Bangla Bank also acts as the third party service provider to personalize and issue cards
for the Bangladesh Bank and a private commercial bank.
For increasing the efficiency of our ATM network, they have taken various steps which
includes installation of the ATM Monitoring Software to centrally monitor the causes of
down time of individual ATMs, implementation of dual AC with timer at all ATM booths to
ensure more ATM-friendly environment, bringing changes into network connectivity by
implementing various upgraded network equipments, strictly following the SLA for all the
related vendors for respective devices in the ATM booths, eliminating out-of-cash situation in
the ATMs, and reducing time taken to resolve any disputes related to cash jam inside the
ATM.
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Internet payment
On 3 June 2010, Dutch Bangla Bank announced internet payments gateway system (Nexus Gateway).
Using their Internet Payment Gateway merchants are able to charge their customers' Visa, Masters,
DBBL Nexus and Maestro cards online. Presently DBBL has more than 400 e-commerce
Merchants. Mobile Apps: DBBL Recently Launched Nexus Pay App For Their Customers.
Social work
Dutch Bangla Bank supports social work and is one of the largest private donors in Bangladesh. The
bank donates towards social awareness programs, medical and educational fields.
Corporate Social Responsibility
Definitely social responsibility includes the responsibility of social people, groups,
societies, and business organization. Here raises the question: why is there more
interest in, and debate about the social responsibility of business and than about the
social responsibility of the other institutions? It is of course legitimate to raise the
issue of social responsibility of business. But we hear rather less about the social
responsibility of, say, the churches, the media, trade unions, the professions,
universities, or even the government. When people collectively organize themselves in
organizations of one kind or another, do those impersonal legal entities really acquire
social responsibilities, which differ from those of other collective entities?
Many people are uneasy about the profit motive, suspecting that profits emerge only
from exploitation. They fear that free enterprise encourages greed and selfishness.
They are reluctant to accept the logic of Adam Smith’s famous theory of invisible
hand, which holds that business people the general interest more effectively by
pursuing their own interests than by directly trying to ‘do good’. I suggest that, this is
why we are here little about the social responsibilities of churches, charities and so on.
Business, in contrast, is assumed to have a problem about its social responsibilities
because it is driven by profit-motives.
So it can be said that, Corporate Social Responsibility (CSR) means that companies
integrate social and environmental concerns in their business operations and in their
interaction with business relevant groups on a voluntary basis.
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Social Responsibilities and Economic performance
The ethos of DBBL for pursuing its activities in social arena has got further
momentum with your enthusiasm and support. Dutch-Bangla Bank Foundation
(DBBF) is consistently pursuing its objective of being active in those social areas
where it is needed most. The Foundation carries out diverse social and philanthropic
activities in the field of education, health, conservation of nature, creation of social
awareness, rehabilitation of distressed people and such other programs to redress
human sufferings. It also promotes different socio-cultural and sports activities. Board
of Directors in order to discharge its corporate social responsibilities in a greater
perspective continued its contribution amounting to 5.00% of Bank’s profit after
charging loan loss provision to Dutch-Bangla Bank Foundation (DBBF).DBBL is
socially responsible in various says. It is helping the society in the following ways:
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Chapter 2 : Financial Statement
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Chapter 3: Theoretical Aspects
Current Ratio:
The current ratio measures a company's ability to pay current or short-term, liabilities (debt
and payables) with its current or short-term assets. The formula of current ratio are given
below:
Current ratio = Current Asset/Current Liabilities.
Debt Ratio
Debt ratio is a financial ratio that indicates the percentage of a company's assets that are
provided via debt. It is the ratio of total debt (short-term and long-term liabilities) and total
assets (the sum of current assets, fixed assets, and other assets such as 'goodwill').The
formula of debt ratio are given below:
Debt ratio = Total Liabilities/Total Assets.
Return on Asset
The term return on assets (ROA) refers to a financial ratio that indicates how profitable a
company is in relation to its total assets. Corporate management, analysts, and investors can
use ROA to determine how efficiently a company uses its assets to generate a [Link]
foemula of return on asset are given below:
Return on asset = Net Income/Average Total Assets.
Return on Equity
The Return on Equity ratio essentially measures the rate of return that the owners of common
stock of a company receive on their shareholdings. Return on equity (ROE) is effectively the
return on a company’s net assets. It is often used to compare a company’s profitability with
its direct competition and/or companies in other industry sectors. The formula of return on
equity is given below:
Return on equity = Net Income/Average Shareholders' Equity.
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Earning per Share
Earning per share (EPS) is the monetary value of earnings per outstanding share of common
stock for a company. It is a key measure of corporate profitability and is commonly used to
price stocks. The formula of earning per share is given below:
Earnings per share = profit − preferred dividends/weighted average common shares.
Chapter 4 : Analysis of Current Ratio
Current Ratio Of 2022
Current asset:
cash 48180791953
Bank 10,188,566,415
Investment:
Treasury bill 13,873,991,390
Maturity grouping of investments 25,280,939,006
Loans:
Maturity grouping of loans 188,214,773,783
Current liabilities:
Borrowings from other banks, financial
institutions and agents 28,283,480,657
Deposits and other accounts 438,131,315,688
maturity grouping of deposits and other
accounts 243,477,846,108
Total current liabilities: 709,892,642,453
Current ratio 0.40
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Current Ratio Of 2021
Current asset:
cash 35,716,753,858
Bank 13,360,447,935
Investment:
Treasury bill 2,687,778,250
Maturity grouping of investments 34702774596
Loans:
Maturity grouping of loans 1.82914E+11
Current liabilities:
Borrowings from other banks, financial
institutions and agents 28,974,520,236
Deposits and other accounts 401,500,345,420
maturity grouping of deposits and other
accounts 2.26803E+11
Total current liabilities: 657,277,403,023
Current ratio 0.41
Current Ratio Of 2020
Current asset:
cash 17,403,330,921
Bank 18,017,117,989
Investment:
Treasury bill 2,999,741,000
Maturity grouping of investments 7923082805
Loans:
Maturity grouping of loans 88416369488
Current liabilities:
Borrowings from other banks, financial
institutions and agents 32,999,166,033
Deposits and other accounts 205,666,983,669
maturity grouping of deposits and other
accounts 1.33779E+11
Total current liabilities: 372,444,716,828
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Current ratio 0.36
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Current Ratio Of 2019
Current asset:
cash 17,638,446,211
Bank 13,929,095,184
Investment:
Treasury bill 3,305,723,544
Maturity grouping of investments 10815201601
Loans:
Maturity grouping of loans 96060570596
Current liabilities:
Borrowings from other banks, financial
institutions and agents 27,725,127,384
Deposits and other accounts 204,530,024,228
maturity grouping of deposits and other
accounts 1.32718E+11
Total current liabilities: 364,972,717,593
Current ratio 0.39
Current Ratio Of 2018
Current asset:
cash 15,451,445,066
Bank 17,494,371,384
Investment:
Treasury bill 492,964,054
Maturity grouping of investments 3547076499
Loans:
Maturity grouping of loans 90062394716
Current liabilities:
Borrowings from other banks, financial
institutions and agents 26,680,184,769
Deposits and other accounts 197,189,479,856
maturity grouping of deposits and other
accounts 1.23665E+11
Total current liabilities: 347,535,074,173
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Current ratio 0.37
Current Ratio
0.42
0.41
0.40
0.39
0.38
Current Ratio
0.37
0.36
0.35
0.34
0.33
2018 2019 2020 2021 2022
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Year 2018 2019 2020 2021 2022
Debt Ratio 24.0 32.5 43.4 38.4 50.1
Debt Ratio
60%
50%
40%
Debt Ratio
30%
20%
10%
0%
2018 2019 2020 2021 2022
[Source: Annual Report of DBBL 2022]
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Year 2018 2019 2020 2021 2022
Return on 1.1% 1.1% 1.3% 1.2% 1.3%
total assets
Return on total assets
1.35%
1.30%
1.25%
1.20%
Return on total assets
1.15%
1.10%
1.05%
1.00%
0.95%
2018 2019 2020 2021 2022
[Source: Annual Report of DBBL 2022]
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Year 2018 2019 2020 2021 2022
Return on 14.4% 16.1% 18.4% 17.2% 19.7%
Equity
Return on Equity
25.00%
20.00%
15.00%
Return on Equity
10.00%
5.00%
0.00%
2018 2019 2020 2021 2022
[Source: Annual Report of DBBL 2022]
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Year 2018 2019 2020 2021 2022
Earning per 8.14 8.8 10.0 8.7 21.0
share
Earning per share
25.00
20.00
15.00
10.00
5.00
0.00
2018 2019 2020 2021 2022
[Source: Annual Report of DBBL 2022]
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Chapter 5: Comparative Analysis
Comparison of Return on Asset:
Year 2018 2019 2020 2021
Return on total assets 1.1% 1.1% 1.3% 1.2%
Year 2018 2019 2020 2021
Industry Average 0.3% 0.4% 0.3% 0.5%
1.40%
1.20%
1.00%
0.80%
Return on Asset
Industry Average
0.60%
0.40%
0.20%
0.00%
2018 2019 2020 2021
From the graph, we can see that All Banks industry average of ROA in 2018 is 0.3 and
DBBL'S ROA in 2018 is 1.3. Hence Dutch- Bangla Bank performed better in 2018. In 2019,
all banks industry average of ROA is 0.4 and DBBL'S ROA is [Link] in 2019, DBBL's ROA
is better than all Banks industry average. In 2020, all banks industry average of ROA is 0.3
and DBBL'S ROA is 1.3. Here also we can see that DBBL'S ROA is better than all banks
industry average in [Link] 2021, DBBL'S ROA is 1.1 and all banks industry average of
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ROA is [Link] we can see that the ROA of DBBL is higher than industry average for last 4
years.
Comparison of Return on Equity:
Year 2018 2019 2020 2021
Return on Equity 14.4% 16.1% 18.4% 17.2%
Year 2018 2019 2020 2021
Industry Average 3.9% 6.8% 4.3% 8.3%
20.00%
18.00%
16.00%
14.00%
12.00%
10.00% Return on Asset
Industry Average
8.00%
6.00%
4.00%
2.00%
0.00%
2018 2019 2020 2021
From the graph, we can see that all banks industry average of ROE in 2018 is 3.9 and
DBBL'S ROE in 2018 is 19.7. Hence Dutch- Bangla Bank performed better in 2018. In 2019,
all banks industry average of ROE is 6.8 and DBBL'S ROE is [Link] in 2019, DBBL's ROE
is better than all banks industry average. In 2020, all banks industry average of ROE is 0.3
and DBBL'S ROE is [Link] also we can see that DBBL'S ROE is better than all banks
industry average in [Link] 2021, DBBL'S ROE is 8.3 and all banks industry average of ROE
is [Link] we can see that the ROE of DBBL is higher than industry average for last 4 years.
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