Quality Analysis of the Balance Sheet of Premier Bank Limited and Jamuna Bank Limited
If we imagine about one question In which sector our business is booming most the answer would be certainly the banks. Bank includes all financial institutions, one of those principle activities is to take deposits and borrow with the objectives of lending and investing and which are with in the scope of banking or similar legislation. Bank represents a significant and influential sector of business worldwide. Most individuals and organizations make use of banks, either as depositor or borrowers. Banks play a major role in maintaining confidence in monetary system through their close relationship with regulatory authorities and governments and the regulation imposed on them by those governments. More than forty eight banks are serving in Bangladesh. These banks not only serve the people but also help the entrepreneurs to them in the track of business. As banks are the source of fund, they control the capital investment in our country most. In this project we will analyze the two potential banks- Premier bank and Jamuna Bank- in Bangladesh.
Financial Position and Strength:
The Premier Bank Limited started its operation from October, 1999 under the Bank Companies Act 1991. Since then, the Bank has emerged as a quality Financial Institute on and making significant contribution to the national economy. The Authorized Capital of the Bank is BDT 1000.00 million and the total Capital Funds as on 31.12.2003 is BDT 758.72 million including Paid-up Capital of Tk. 408.91 million. Capital Adequacy ratio is 11.76% as against required 9%. The Bank is a full service Commercial Bank and licensed by Bangladesh Bank. The Bank has a strong capital base, with no insider lending and low non- performing loans (0.36%)
Future potential:
Premier bank has been a successful bank over five years. Its paid up capital has increased from Tk 222 million to Tk 681.45 million. Over the years premier bank is expanding its business region. As it has already opened 21 business