Letter of Transmittal

Date: 20th October, 2014

To
Fakhrul Islam
Lecturer
Department Business Administration
Dhaka International University (DIU)

Subject: Prayer for Submission of Internship Report.

Dear Sir,
It is a pleasure to me to present the internship report on Financial Reporting of Prime
Bank Limited as a part of the requirement for the completion of my Internship. I tried my
level best to accumulate relevant information. It is a great experience for me to work on this
topic.

I have tried to make the report comprehensive within the scheduled time and limited
resources. I tried to collect all the related information of Prime Bank Limited. I have also
added some summary of findings and recommendations in the report.

It would be very kind of you for examine my report work and give me further suggestions
and enhance my clarification due to future prospects.

Sincerely yours

Zakia Sultana Mitu

Roll-25,
Reg. No: 241525,
Program: BBA, Batch-33rd
Department of Accounting
Dhaka International University (DIU)

II
 Declaration

I, Zakia Sultana Mitu hereby declare that the report of internship program titled Financial
Reporting of Prime Bank Limited is uniquely prepared by me after the completion of Three
months of Prime Bank Limited.

I also confirm that, the report is only prepared for my academic requirement. It might be with
the interest of opposite party of the corporation. I also assure that, this report was not
submitted to any other private or public universities.

I further undertake to indemnify department against any loss or damage arising from breach
of the forgoing obligation.

Zakia Sultana Mitu

Roll-25,
Reg. No: 241525,
Program: BBA, Batch-33rd
Department of Accounting
Dhaka International University (DIU)

III
 CERTIFICATE OF SUPERVISOR

This is to certify that Zakia Sultana Mitu, Roll-25, Reg. No: 241525, Program: BBA, Batch-33rd
, Department of Accounting Dhaka International University (DIU) successfully completed her
Internship Program entitled Financial Reporting of Prime Bank Limited under my
supervision as the partial fulfillment for the BBA degree.

She has done her job according to my supervision and guidance. She has tried his best to do
this successfully. I think report will help him in the future to build up his career.

The report has been prepared under my guidance and is a record of the bona fide work carried
out successfully.

Fakhrul Islam
Lecturer
Department Business Administration
Dhaka International University (DIU)

Acknowledgement

IV
First of all I would like to acknowledgement The Almighty, the supreme authority of the
universe. This is an exclusive instance of professional life I passed and enjoyed in the time of
my internship, which help me to prepare this report. A single individual can achieve no noble
objective. Completion of anything requires supports from various sources. I am very much
fortunate to get the sincere guidance and supervision from a number of people.

I would like to express my gratitude to a large number of individuals who helped and guided
me both directly and indirectly while preparing this report. I am truly grateful to my faculty
supervisor Fakhrul Islam, Lecturer, Department Accounting, Dhaka International University
(DIU), Md. Reza Hossain Vice President of Prime Bank Limited (Facility Management
Division) and on site supervisor Ishtiaque Hossain who has always extended their kind
support towards me and has given me valuable suggestion for preparing this report. Without
their co-operation and direct supervision this project could not be accomplished successfully.

I would like to give a great thanks to all the employees of Prime Bank Limited in Head Office
(Facility Management Division), because of excellent behavior with me and providing
necessary information related to the work.

Finally I want to thank all my friends who supported me to prepare the report in easy, clear
and systematic manner.

Though, all efforts have been made to make the report reasonably comprehensive and better,
there still may lay some mistakes, my supervisor may help me and forgive me for such
mistakes.

Zakia Sultana Mitu

V
 Executive Summary
Prime Bank has been incorporated on April 17th, 1995 in Head office at Dilkhusha, Dhaka,
Bangladesh as a public limited company with the permission of the Bangladesh Bank. Prime
Bank Limited commenced formal commercial banking operation from the May 02, 1995. The
founders of PBL are committed to make it a little more different and a bit special
qualitatively. The Authorized Capital of the Bank is BDT 800000 million and divided into
80000000 ordinary shares of BDT 100 each as of 31 December 2010. The Paid -up Capital is
BDT 4072.21 million of 4072201 ordinary shares of face value of BDT 100 each and listed
both in DSE & CSE. The whole banking activities are divided into four parts, General
Banking section, Credit Section, Cash section and Foreign exchange section.

The objectivities of the study are as to evaluate the financial performance of Prime Bank
Limited and to make some recommendations on the basis of study findings. Information has
been collected from the major sources such as are annual report of Prime Bank Ltd, internal
records of various departments and Other sources (like Magazines, Newspaper etc.).

It is not unexpected to have problems in any organization. There must be problems to operate
an organization. Cost income ratios is high, so the operating efficiecy of PBL is not good.
Total asset turnovers not good position. In 2008 it was .053 and 2012 it was .055. Net profit
Margins is not in strong position. Return on Equiy is not in good position. Earnings per share
is downward. PBL debt ratio is fluctuating. In 2008 it was 0.94 and 2012 it was 0.91, it is not
good for the bank. Time interest earned ratio is not satisfactory. In 2008 it was 1.13 and 2012
it was 1.28.

The following recommendations can be suggested to solve the above mentioned problems are
as we have seen that operating efficiency of the Prime Bank Ltd. is not good position. That
means they are not succeeding to minimize their operating cost. So, it should take necessary
steps to keep down this trend. PBLs total asset turnover was not good at all. So, total assets
turnover should be increased by generating operating income to attract the outsider investor.
PBLs investment to deposit ratio was fluctuating year by year. The PBL should more
increase their investment to deposit ratio to maximize their operating income and owners
equity. The return on equity ratio was not good so, the management should work hard to
increase the return associated with equity. From the trend analysis we have seen that PBLs
P/E ratio was fluctuating. So, PBLs should try improving of this ratio. As, PBLs Time
interest ratio is not satisfactory .So, it should increase their EBIT or reduces the debt capital
in order to smoothly satisfy the interest obligations.

VI
 Table of Contents

Page No.
Letter Of Transmittal II
Declaration III
Certificate IV
Acknowledgement V
Executive Summary VI
Table of Contents VII
Chapter-1
Introduction
1.1 Background of the Study 1
1.2 Objectives of the Study 1
1.3 Methodology 1
1.4 Scope of the Study 2
1.5 Limitations of the Study 2

Chapter-2
Company Overview
2.1 Introduction 3
2.2 Vision 4
2.3 Mission 4
2.4 Objectives 4
2.5 Corporate Philosophy 5
2.6 Corporate Milestones 6
2.7 Achievements and Awards 6
2.8 Organogram of Prime Bank Ltd. 7
2.9 Products and Services of Prime Bank Limited 8
2.10 Offshore Banking Unit 9
2.11 Functional Structure of Prime Bank Ltd. 10
2.12 Subsidiaries of Prime Bank Ltd. 14

Chapter-3
Theoretical Aspects
3.1 Financial performance analysis 16
3.2 Balance sheet 16
3.3 Income statement 16
3.4 Ratio analysis 16

VII
VIII
 Chapter-4
Financial Performance Analysis of Prime Bank Limited Page No.

4.1.0 Ratio Analysis 21

4.1.1 Current Ratio 21

4.1.2 Net Working Capital 22
4.1.3 Cost income Ratio 23
4.1.4 Total Asset Turn-over Ratio 24
4.1.5 Investment to deposit ratio 25
4.1.6 Net profit margin 26
4.1.7 Return on asset 27
4.1.8 Return on Equity 28
4.1.9 Earning per share 29
4.1.10 Price earning ratio 30
4.1.11 Debt ratio 31
4.1.12 Time interest earned ratio 32

Chapter-5 Page No.

Summary of Findings, Conclusion & Recommendations

5.1 Summary of findings 33

5.2 Conclusions 34
5.3 Recommendations 35

Bibliography 36

IX