3 Bangladeshi Bank
TABLE OF CONTENT
1. INDUSTRY OVERVIEW 1 1.1 Background 1 1.2 Introduction 1
2. CALCULATION OF RISK-FREE, MARKET RETURN AND SYSTEMATIC RISK 2
3. DUTCH-BANGLA BANK LIMITED 4 3.1 Company overview 4 3.2 Calculation of Rate of Return 4 3.3 Calculation of present value of the stocks 5
4. BRAC Bank 9 4.1 Company Overview 9 4.2 Calculation of Rate of Return 10 4.3 Calculation of present value of the stocks 10
5. AB Bank Ltd. 12 5.1 Company Overview 12 5.2 Calculation of Rate of Return 12 5.3 Calculation of present value of the stocks 13
6. ANALYSIS 15 6.1 Dutch-Bangla Bank Ltd. 15 6.2 AB Bank Ltd. 17 6.3 BRAC Bank Ltd. 18
APPENDIX 20
REFERENCES 21
1. INDUSTRY OVERVIEW
1.1 Background
The banking industry in Bangladesh have flourished over the years making double-digit profit percentages, sustaining growth and surviving cut throat competition while providing attractive return to the shareholder. As a result, many investors are now showing interest in investing in banking sector and government is also supporting banks so that they can play a crucial role in developing the economy. These present scenario of the banking industry has led us to do analysis on three banks which includes Dutch Bangla Bank Ltd. BRAC Bank Ltd. and AB Bank Ltd.
1.2 Introduction
Banking sector of Bangladesh is one of the major sectors, which contributes significantly to the national economy. . It is the most popular industry for the development of social and agricultural sector of Bangladesh. Women, small entrepreneurs and farmers are encouraged and supported by the banking sector. The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs).
Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 12
1. INDUSTRY OVERVIEW 1 1.1 Background 1 1.2 Introduction 1
2. CALCULATION OF RISK-FREE, MARKET RETURN AND SYSTEMATIC RISK 2
3. DUTCH-BANGLA BANK LIMITED 4 3.1 Company overview 4 3.2 Calculation of Rate of Return 4 3.3 Calculation of present value of the stocks 5
4. BRAC Bank 9 4.1 Company Overview 9 4.2 Calculation of Rate of Return 10 4.3 Calculation of present value of the stocks 10
5. AB Bank Ltd. 12 5.1 Company Overview 12 5.2 Calculation of Rate of Return 12 5.3 Calculation of present value of the stocks 13
6. ANALYSIS 15 6.1 Dutch-Bangla Bank Ltd. 15 6.2 AB Bank Ltd. 17 6.3 BRAC Bank Ltd. 18
APPENDIX 20
REFERENCES 21
1. INDUSTRY OVERVIEW
1.1 Background
The banking industry in Bangladesh have flourished over the years making double-digit profit percentages, sustaining growth and surviving cut throat competition while providing attractive return to the shareholder. As a result, many investors are now showing interest in investing in banking sector and government is also supporting banks so that they can play a crucial role in developing the economy. These present scenario of the banking industry has led us to do analysis on three banks which includes Dutch Bangla Bank Ltd. BRAC Bank Ltd. and AB Bank Ltd.
1.2 Introduction
Banking sector of Bangladesh is one of the major sectors, which contributes significantly to the national economy. . It is the most popular industry for the development of social and agricultural sector of Bangladesh. Women, small entrepreneurs and farmers are encouraged and supported by the banking sector. The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs).
Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 12