Download - FINI619 Internship Report MCB
-
8/11/2019 FINI619 Internship Report MCB
1/56
In the name of AllahWho is the most beneficent
& the most merciful
www.vusrudents.ning.com
http://www.vusrudents.ning.com/http://www.vusrudents.ning.com/ -
8/11/2019 FINI619 Internship Report MCB
2/56
LOGO
MBA Finance
-
8/11/2019 FINI619 Internship Report MCB
3/56
-
8/11/2019 FINI619 Internship Report MCB
4/56
I ntroduction to M CB
A bank is a financial institution which
deals with money and credit. It is anintermediate between two parties. A
bank is a firm that takes deposits fromhousehold, firms and makes loans to
household and firms.
-
8/11/2019 FINI619 Internship Report MCB
5/56
History
Muslim Commercial Bank Ltd. Unfold 57- years growth. MCB is not an overnight success story. The
bank started corporate life in Calcutta on July 9,1947. After the partition of the Indo-Pak
Subcontinent, the bank moved to Dhaka from where itcommenced business in August 1948. In 1956, the
Bank transferred it Registered office to Karachi,where the Head Office is presently located. Main Muhammad Mansha Chairman and chief executive of
MCB
-
8/11/2019 FINI619 Internship Report MCB
6/56
P
oAuto Loan
oBusinessSarmayaoTractor financeschemeoMORTGAGE
S
oMCB ATMServicesoMCB MobileBankingoMCB CallCenter
oBasic BankingAccount (BBA)oCurrent AccountoSaving AccountoBusinessAccount
D
-
8/11/2019 FINI619 Internship Report MCB
7/56
Allied Bank Limited
United Bank Limited
Askari Bank Limited
Add Your
Title
-
8/11/2019 FINI619 Internship Report MCB
8/56
6500 6500 6500
292,098 330,274 367,604
218,960 262,510 253,149
113,089 96,256 167,134
394,068 22,663 44,662
5,130 9,193 15,779
15,265 15,374 15,495
2007 2008 2009
Authorizecapital
Deposits
Advances
Investment
Borrowing
Reserve
Profit after tax
Description
-
8/11/2019 FINI619 Internship Report MCB
9/56
Organizational H ierarchy Char t
President
Chairman
Vice president
Chief Financial Advisor
Audit Committee
Regional Manager
Branch Manager
Senior Vice President
-
8/11/2019 FINI619 Internship Report MCB
10/56
15-10-2010 30-11-2010
Joining Adjoining
-
8/11/2019 FINI619 Internship Report MCB
11/56
Working Departments
Remittance
1st week
2nd week
3rd week
Customer service
Account
4th week
5th week
6th week Coll ect External in formation
Cash
ClearingDepartme
nt
-
8/11/2019 FINI619 Internship Report MCB
12/56
Activity
L everage
Liquidity
Ratios
MarketProfitability
-
8/11/2019 FINI619 Internship Report MCB
13/56
-
8/11/2019 FINI619 Internship Report MCB
14/56
Cur rent Ratio
RatioAnalysis
Muslim Commercial Bank LimitedCurrent Ratio = Current assets
Current Liability
2007 2008 2009 CurrentRatio
62411535/222015512.81
67584827/318972492.11
70824959/240201722.94
2.94
2.11
2.81
0 0.5 1 1.5 2 2.5 3 3.5
2 0 0 7
2 0 0 8
2 0 0 9
-
8/11/2019 FINI619 Internship Report MCB
15/56
Quick Ratio (Acid Test)
RatioAnalysis
Muslim Commercial Bank LimitedCurrent Ratio = Current assets- prepaid Expenses
Current Liability
2007 2008 2009 Quick Ratio 62411535/22201551
2.8167584827/31897249
2.1170824959/24020172
2.94
2.94
2.11
2.81
0 0.5 1 1.5 2 2.5 3 3.5
2 0 0 7
2 0 0 8
2 0 0 9
-
8/11/2019 FINI619 Internship Report MCB
16/56
Working Capital Ratio
RatioAnalysis
Muslim Commercial Bank Limited
Working Capital ratio = Current Assets - Current Liability
2007 2008 2009 WorkingCapitalRatio
62411535-2220155140209984
67584827-3189724935687578
70824959-2402017246804787
Working Capital Ratio
40209984
35687578
46804787
2 0 0 7
2 0 0 8
2 0 0 9
-
8/11/2019 FINI619 Internship Report MCB
17/56
Working of Current Assets
Current Assets2007(Rs)
2008(Rs)
2009(Rs)
Cash and balanceswith treasury banks
39683883 39,631,172 38,774,871
Balances with otherbanks
3807519 4,043,100 6,009,993
Landings tofinancial institutions
1051372 4,100,079 3,000,000
Other assets net 17868761 19,810,476 23,040,095
Total 62411535 67584827 70824959
-
8/11/2019 FINI619 Internship Report MCB
18/56
Working of Current L iabil i ties
Current Liabilities 2007(Rs)
2008(Rs)
2009(Rs)
Bills payable 10479058 10,551,468 8,201,090
Other liability 11722493 21,345,781 15,819,082
Total 22201551 31897249 24020172
-
8/11/2019 FINI619 Internship Report MCB
19/56
-
8/11/2019 FINI619 Internship Report MCB
20/56
Debt Ratio
RatioAnalysis
Muslim Commercial Bank LimitedDebt Ratio = Total Debt / Total Assets
2007
2008
2009
DebtRatio
355365842/4104855170.86
385179850 /4436159040.868
439483714/509,223,7270.86
Debt Ratio
0.86
0.86
0.86
0 0.2 0.4 0.6 0.8 1
2 0 0 7
2 0 0 8
2 0 0 9
-
8/11/2019 FINI619 Internship Report MCB
21/56
Working of Total (L iabili ty) Debt
Total debt 2007(Rs)
2008(Rs)
2009(Rs)
Bills payable 10479058 10,551,468 8,201,090
Borrowing 39406831 22,663,840 44,662,088
Deposit andother account
292098066 330,181,624 367,604,711
Other liability 11722493 21,345,781 15,819,082
Deferred tax
liabilities net1180162 437,137 3,196,743
Sub-ordinateloan
479232 - -
Total 355365842 385,179,850 439,483,714
-
8/11/2019 FINI619 Internship Report MCB
22/56
Working of Total Assets
Total Assets 2007(Rs)
2008(Rs)
2009(Rs)
Cash and balances withtreasury banks
39683883 39,631,172 38,774,871
Balances with other banks 3807519 4,043,100 6,009,993Lending to financialinstitution
1051372 4,100,079 3,000,000
Investment 113089261 96,631,874 167,134,465
Advances 218960598 262,135,470 253,249,407
Other asset 17868761 19,810,476 23,040,095
operating fixed Assets 16024123 17,263,733 18,014,896
Deferred tax Assets - - -
Total 410485517 443615904 509223727
-
8/11/2019 FINI619 Internship Report MCB
23/56
Debt / Equi ty Ratio
RatioAnalysis
Muslim Commercial Bank LimitedDebt to Equity Ratio: = Total liabilities (Debt) / Shareholder equity
2007 2008 2009
Debt /EquityRatio
355365842 /551196756.44
385179850 / 584360546.59
439483714 / 697400130.63
Debt to Equity Ratio
6.44
6.59
0.63
0 1 2 3 4 5 6 7
2 0 0 7
2 0 0 8
2 0 0 9
-
8/11/2019 FINI619 Internship Report MCB
24/56
Working of Shareholder Equity
Share Holder Equity= Total Assets Total Liabilities
-
8/11/2019 FINI619 Internship Report MCB
25/56
Times I nterest Earned
RatioAnalysis
Muslim Commercial Bank LimitedTime Interest Earned Ratio = (EBIT) / Interest expenses
2007 2008 2009
TimeInterestEarned
29173568 / 7,865,5333.70
33428306 /11,560,7402.89
38996408 /15,841,4632.46
2.46
2.89
3.7 2 0 0 7
2 0 0 8
2 0 0 9
-
8/11/2019 FINI619 Internship Report MCB
26/56
Working of EBI T
EBIT 2007(Rs)
2008(Rs)
2009(Rs)
Profit before tax 21308035 21,867,566 23,154,945
Add) interest / markupexpenses
7865533 11,560,740 15,841,463
Total 29173568 33428306 38996408
Interest / markup Expenses are available in P&L Account
-
8/11/2019 FINI619 Internship Report MCB
27/56
TOTAL CAPI TALI ZATI ON RATI O
RatioAnalysis
Muslim Commercial Bank LimitedTotal Capitalization Ratio = Long term debt / Long term debt + Share holder equity
2007 2008 2009
TotalCapitalization ratio
1659394 /1659394+551196751659394 / 56779069
0.02
437137 /437137+58436054437137 / 58873191
0.13
3196743 / 3196743+697400133196743 / 72936756
0.04
TOTAL CAPITALIZATION RATIO
0.02
0.13
0.04
0 0.02 0.04 0.06 0.08 0.1 0.12 0.14
2 0 0 7
2 0 0 8
2 0 0 9
-
8/11/2019 FINI619 Internship Report MCB
28/56
Working of long term l iabil i ties
Long termLiabilities
Year 2007(Rs)
Year 2008(Rs)
Year 2009(Rs)
Sub-ordinates
loans
292098066 - -
Deferd tax liability 1180162 437,137 3,196,743
Liabilities against
assets subject tofinance lease
479232 - -
Total 293757460 437,137 3,196,743
-
8/11/2019 FINI619 Internship Report MCB
29/56
-
8/11/2019 FINI619 Internship Report MCB
30/56
Total Assets Turnover
RatioAnalysis
Muslim Commercial Bank LimitedTotal Assets Turnover = Sales / Total Assets
2007 2008 2009TotalAssetTurnover
31786595 /4104855170.07
40043824 /4436159040.09
51616007 /5092237270.10
0.07
0.09
0.1
0 0.05 0.1
1
2 0 0
7
2 0 0 8
2 0 0 9
Total Asset Turnover
2009 51616007/509223727
2008 40043824/443615904
200731786595/410485517
-
8/11/2019 FINI619 Internship Report MCB
31/56
F ixed Assets Turnover
RatioAnalysis
Muslim Commercial Bank LimitedFixed Assets Turnover = Sales / Total Fixed Assets
2007 2008 2009FixedAssetsTurnover
31786595 /160241231.98
40043824 / 17263733 2.31
51616007 / 180148962.86
1.98
2.31
2.86
0 1 2 3
1
2 0 0 7
2 0 0 8
2 0 0 9
Fixed Asset Turnover
2009 51616007 /18014896
2008 40043824 /17263733
2007 31786595/16024123
-
8/11/2019 FINI619 Internship Report MCB
32/56
Sale is the value of "Net Sales" or "Sales" from thecompany's income statementTotal F ixed Assets Total fixed assets are the value ofall the assets which is not current assets. Total Fixedassets are available in the balance sheet.
-
8/11/2019 FINI619 Internship Report MCB
33/56
-
8/11/2019 FINI619 Internship Report MCB
34/56
Net Profi t M argin
RatioAnalysis
Muslim Commercial Bank LimitedNet Profit Margin = Net Income / sales *100
2007 2008 2009
Net profitMargin
20,808,390 / 317865950.65 or 65.4%
20,526,669 / 400438240.51 or 51.2%
24,710,953 / 516160070.47 or 47.8%
65.40%
51.20%
47.80%
0.00% 20.00% 40.00% 60.00% 80.00%
1
2 0 0 7
2 0 0 8
2 0 0 9
Net Profit Margin
2009 24,710,953 /51616007
2008 20,526,669 /40043824
2007 20,808,390 /31786595
-
8/11/2019 FINI619 Internship Report MCB
35/56
Working of Net I ncome
Net Income 2007 2008 2009
Net mark up /interest income afterprovisions
20856011 24,463,963 28,452,223
Add) Non mark up /interest income
6011291 5,791,440 5,642,885
Less)Non mark up /interest expenses
26867302 8,387,837 10,940,163
Profit before tax 21308035 21,867,566 23,154,945
Less) taxes 6042473 6,492,966 7,659,648
Profit after tax 15265562 15,374,600 15,495,297
Less) other expenses 5542828 5,152,069 9,215,656
Net income 20808390 20,526,669 24,710,953
-
8/11/2019 FINI619 Internship Report MCB
36/56
Return on Assets
Ratio Analysis Muslim Commercial Bank LimitedReturn on Assets = Net income after tax / Total Assets * 100
2007 2008 2009 Return onAssets
15265562/410485517*100
3.71%
15374600/443615904*100
3.46%
15495297/509223727*100
3.04%
3.71%
3.46%
3.04%
0.00% 1.00% 2.00% 3.00% 4.00%
1
2 0 0 7
2 0 0 8
2 0 0 9
Return on Asse ts
200915495297/509223727*100
200815374600/443615904*100
200715265562/410485517*100
-
8/11/2019 FINI619 Internship Report MCB
37/56
Working of Net income af ter tax
Net income aftertax
2007 2008 2009
Net mark up /interest income afterprovisions
20856011 24,463,963 28,452,223
Add) Non mark up /interest income
6011291 5,791,440 5,642,885
Less)Non mark up /interest expenses
26867302 8,387,837 10,940,163
Profit before tax 21308035 21,867,566 23,154,945
Less) taxes 6042473 6,492,966 7,659,648
Net income after tax 15265562 15,374,600 15,495,297
-
8/11/2019 FINI619 Internship Report MCB
38/56
Operating I ncome M argin
RatioAnalysis
Muslim Commercial Bank LimitedOperating margin = operating Income / Net sales*100
2007 2008 2009
Operatingincomemargin
24,369/31786595 7.66 %
25,910 / 400438246.47%
30,620 / 516160075.93%
7.66
6.47
5.93
0 2 4 6 8
1
2 0 0 7
2 0 0 8
2 0 0 9
Operating income Margin
2009 30,620 / 51616007
2008 25,910 / 40043824
2007 24,369/ 31786595
-
8/11/2019 FINI619 Internship Report MCB
39/56
Operating Income = Available in Six year Analysis of the company
-
8/11/2019 FINI619 Internship Report MCB
40/56
Return on Operating Assets
RatioAnalysis
Muslim Commercial Bank Limited
Return on operating Assets = sales / operating assets
2007 2008 2009 Return onoperatingAssets
31786595/160827811.97
40043824 / 173204852.31
51616007 / 180990102.85
Return on Operating Assets
1.97
2.31
2.85
0 0.5 1 1.5 2 2.5 3
2 0 0 7
2 0 0 8
2 0 0 9
-
8/11/2019 FINI619 Internship Report MCB
41/56
Working of operating Assets
Operating Assets 2007 2008 2009
Capital work in progress
233390 510,226 1,099,749
Property andequipment 15607660 16,562,309 16,666,905
Intangible asset 183073 191,198 248,242
Total 16024123 17,263,733 18,014,896
-
8/11/2019 FINI619 Internship Report MCB
42/56
Retur n on Equi ty
RatioAnalysis
Muslim Commercial Bank Limited
Return on Equity = Net income after tax / Total Equity* 100
2007 2008 2009
Return onequity
15265562/45414156*100
33.6%
15374600/52244865*100
29.4%
15495297/61075932*100
25.4%
33.60%
29.40%
25.40%
0.00% 10.00% 20.00% 30.00% 40.00%
1
2 0 0 7
2 0 0 8
2 0 0 9
Return on E quity
200915495297/61075932*100
200815374600/52244865*100
200715265562/45414156*100
-
8/11/2019 FINI619 Internship Report MCB
43/56
Working of Total Equi ty
Total equity 2007 2008 2009
Share capital 6282768 6,282,768 6,911,045
Reserves 34000638 36,768,765 38,385,760
Un appropriated profit
5130750 9,193,332 15,779,127
Total 45414156 52,244,865 61,075,932
-
8/11/2019 FINI619 Internship Report MCB
44/56
-
8/11/2019 FINI619 Internship Report MCB
45/56
Working of Gross Prof it
Gross Profit 2007 2008 2009
Mark up / return /interest earned
31786595 40,043,824 51,616,007
Less) Mark up /return / interestexpensed
7865533 11,560,740 15,841,463
Total 23921062 28,483,084 35,774,544
-
8/11/2019 FINI619 Internship Report MCB
46/56
DuPont Return on Assets
RatioAnalysis
Muslim Commercial Bank Limited
DuPont Return on Assets = Net Income * Sales_____Sales Total Assets
2007 2008 2009 DuPontreturn onassets
20,808,390/31786595*
31786595/4104855170.65*0.07
0.04
20,526,669 / 40043824*
40043824 /4436159040.41*0.09
0.03
24,710,953 / 51616007*
51616007 /5092237270.47*0.10
0.04
0.04
0.03
0.04
0 0.01 0.02 0.03 0.04
1
2 0 0 7
2 0 0 8
2 0 0 9
DuPont Return on Assets
2009 24,710,953 /51616007 * 51616007/509223727 0.47*0.10
2008 20,526,669 /40043824 * 40043824/443615904 0.41*0.09
2007 20,808,390 /31786595 * 31786595
/410485517 0.65*0.07
-
8/11/2019 FINI619 Internship Report MCB
47/56
-
8/11/2019 FINI619 Internship Report MCB
48/56
Dividend Per Share
RatioAnalysis
Muslim Commercial Bank Limited
Dividend per share = Dividend paid to share holderAverage common share outstanding
2007 2008 2009 Dividendper share
4728496/ 691104527400.0
9834175/ 691104527125.9
6735510 / 691104527219.7
Dividend Per Share
400.0
125.9
219.7
0 100 200 300 400 500
2 0 0
7
2 0 0 8
2 0 0 9
-
8/11/2019 FINI619 Internship Report MCB
49/56
Dividend paid to share holder Source: Cash flow statement of MCB
Average common share outstanding source: financial statement analysis notes of MCB
Note # 32 page # 106
-
8/11/2019 FINI619 Internship Report MCB
50/56
Earning Per Share
RatioAnalysis
Muslim Commercial Bank Limited
Earning Per share = Profit Available to shareholders or Net income after tax No of shares outstanding
2007 2008 2009
Earningper share
20,808,390 / 1102183 22.09
20,526,669 / 92130422.25
24,710,953 / 111864822.42
Earning Per Share
22.09
22.25
22.42
21.9 22 22.1 22.2 22.3 22.4 22.5
2 0 0 7
2 0 0 8
2 0 0 9
-
8/11/2019 FINI619 Internship Report MCB
51/56
No of shares outstanding= Net income after tax
EPSEPS is available in balance sheetNet income is available in P&L account of the
MCB
-
8/11/2019 FINI619 Internship Report MCB
52/56
Price Earning Ratio
RatioAnalysis
Muslim Commercial Bank Limited
Price Earning Ratio = Current market Share price / Earning Per Share
2007 2008 2009 PriceEarningratio
18.11 * 22.09400.0
5.66 *22.25125.9
9.80 * 22.42219.7
PRICE EARNING RATIO
400.0
125.9
219.7
0 100 200 300 400 500
2 0 0 7
2 0 0 8
2 0 0 9
-
8/11/2019 FINI619 Internship Report MCB
53/56
Working of Pr ice Earning Ratio
EPS is available in balance sheetPE Ratio is available in year analysis of the company.
Cur rent market Share price = PE * EPS
-
8/11/2019 FINI619 Internship Report MCB
54/56
Conclusion
The overall analysis shows that MCB is in good conditionthroughout the analysis years 2007
In the next year 2008 & 2009, there is decrease in the value of
profit as compare to previous year. During this year theoperating cost was max and its operational profit wasminimum as compare to previous year .The reason behind thisdue to uncertainty in the process of increase in payables,increase in capital work in progress and less investmentduring this year.
Earning per share is also increase during these years for the stocks holders and the persons interested in MCB investment. Insufficient Staff in branches
-
8/11/2019 FINI619 Internship Report MCB
55/56
Recommendation
MCB Should focus more on training needs of staff in line with practical banking, especially IT based products Bank should acquire modern automation system to provideefficient and prompt service to the customers
Before lending loan to the client or financing a project a teamof expert should physically visit the site and then evaluate its
feasibility for investment. If the investment and project is profitable then should go on otherwise should not invest.
Increase in Mobile Banking including ATM , online Bankingetc.Take step to increase the profit.
Investment in assets should be appropriate.
-
8/11/2019 FINI619 Internship Report MCB
56/56
LOGO