ACKNOWLEDGEMENT

First and foremost we would like to express our gratitude and indebtedness to our honorable
faculty, Quazi Sagota Shamima, Assistant Professore, Department of Business Administration,
East West University (EWU). We would like to thank our Madam for providing full assistance
and detailed outline about how to proceed with data collection and writing procedure. With her
inexhaustible guidance, valuable advice, continuous inspiration, constructive criticism and
generosity he helped us to carry out this report successfully

We would like to thank , Mr. Muhammad Moniruzzaman,Head Of Finance for giving us his
valuable time and permit us to take her informative interview about the Bank. We will always be
indebted to you for your kind consideration and also for the suggestion regarding the report
writing works.

We also would like to thank Mr. Mohammad Rahman,Cash Officer, for his co-operation. We
would further like to thank DSE librarary officer for providing us with detailed information. At
this stage, we must show our gratitude to receptionist, who has significantly assisted us.

Finally, we would like to thank to all group members that directly or indirectly helped us to
provide and accumulate all the necessary information for the accomplishment of this assignment.

3
Eastern Bank:

With a vision to become the bank of choice and to be the most valuable financial brand in Bangladesh,
Eastern Bank Ltd. (EBL) began its journey in 1992. Over the years EBL has established itself as a
leading private commercial bank in the country with undisputed leadership in Corporate Banking and a
strong Consumer and SME growth engines. EBL's ambition is to be the number one financial services
provider, creating lasting value for its clientele, shareholder, employees and above all for the community
it operates in. EBL is also the first bank to introduce Priority Banking in Bangladesh. In priority segment,
EBL offers high quality products and services and dedicated Relationship Managers is committed to help
manage financial health, preserve lifestyle and maintain priorities of the customers wherever life takes
them. EBL is known for its product innovation in the market. During the past five years, EBL introduced
12 new-to-Bangladesh financial products and services. EBL Matribhumi the bundle product for
expatriate Bangladeshis, insurance covered monthly savings scheme, VISA corporate cards, remittance
card and mobilebased remittance solution are just a few of them. On the SME banking window EBL
offered customerfriendly and groundbreaking products like EBL Uddom and EBL Mukti. At present,
EBL Consumer, SME and Corporate Banking units are capable of handling every kind of customer
financial needs.

First Security Islami Bank:

First Security Islami Bank Limited (FSIBL) was incorporated in Bangladesh on 29 August 1999
as a Banking company under Companies Act 1994 to carry on banking business. It obtained
permission from Bangladesh Bank on 22 September 1999 to commence its business. The Bank
went for public issue on 20 July 2008 and its shares are listed with Dhaka Stock Exchange (DSE)
and Chittagong Stock Exchange (CSE). Presently the Bank carries banking activities through its
Ninety Two (92) branches in the country. The Bank had no overseas branches as at December
31, 2010. The Bank converted its banking operation into Islamic Banking based on Islamic
Shariah from traditional banking operation on 01 January 2009 after obtaining approval from
honorable High Court, Ministry of Finance and Bangladesh Bank.
The principal activities of the Bank are to provide all kinds of commercial banking
services to its customers through its branches in Bangladesh.

4
Eastern Bank Limited

1996 1997 1998 1999 2000

Deposit 9,480,466,180
7,487,462,056 8,667,153,766 10,944,553,224 12,076,031,137
amount

Loan amount 3345494127 4651771361 4726962665 6893725113 7488264342

Average 18% 17.40% 20.96% 17.98% 20.13%

lending rate
Equity capital 812830627 957468106 1032144277 2455786912 1700487814
Investment
746256430 721760750 900461900 1302556350 1811884860

Cash balance
368163130 378203225 432983861 549620301 140208854

corresponding
2661796800 3590490550 3208266472 3721577187 495886384
deposit
Government
0 234023720 452111400 993181350 1536028260
securities
Total asset 11207695266 12887456690 15161049190 18555049770 16879939613

2001 2002 2003 2004 2005

Deposit
13,087,953,245 13,519,032,209 11,713,848,846 15,437,661,272 19,098,041,516
amount

Loan amount 9,435,313,255 10,626,090,774 10,953,543,437 14,918,993,279 17,174,528,536

Average 17.34% 15.13% 12.63% 10.91% 12.01%

lending rate
Equity capital 1,917,191,053 2,110,849,776 2,320,898,168 2,630,833,535 3,070,915,605
Investment
312,056,600 297,056,600 3,611,210,700 4,398,892,000 5,008,866,500

Cash balance 1081658488

119,588,127 1,069,934,923 1108059109 1333528137

corresponding
4,390,324,030 3,244,189,503 1,546,429,840 758,876,547 745,258,450
deposit
Government
945,949,360 1,659,258,912 3,331,354,100 4,041,035,400 4,663,009,900
securities
Total asset 18,284,013,368 18,133,284,340 18,715,682,398 23,043,468,479 27,399,954,469

5
 2006 2007 2008 2009 2010 2011
Deposit
25699778708 30,091,769,096 41,572,767,785 49,189,542,218 70,231,594,781 75,535,746,703
amount

Loan amount 26007863928 30961802829 39,662,162,813 47,667,987,118 58,607,085,693 81,773,910,178

Average
10.88% 12.32% 13.20% 13.00% 12.50% 12.79%
lending rate
Equity capital 3315126804 3711807755 4,732,779,536 8429,152,418 12,256,981,400 14,407,051,469
Investment
5889608105 5895990107 5,324,758,540 8,806,305,306 9,827,197,073 16,910,191,265

Cash balance 3402440722

2,167,355,515 2,347,303,278 3,518,546,161 3681327496 6,022,757,136

corresponding
929228265 1546715804 3,418,017,092 6,779,156,934 4,687,412,895 3,531,317,370
deposit
Government
5752836137 5620577176 4,923,272,085 7,716,875,500 6,828,141,845 12,841,220,762
securities
Total asset 35970642294 42579485856 54,598,268,072 69,870,738,519 82,488,576,181 117,580,719,482

**Average Lending rate= (Interest Income from loan and advances)/ total loan and advances amount

6
First Security Islami Bank Limited

2003 2004 2005

Deposit amount 9,443,566,135 11,231,675,352 14,012,175,134
Loan amount 6,476,837,485 8,500,274,994 10,722,329,293
Average lending rate 12.63% 14.75% 12.24%
Equity capital 429,509,977 530,995,278 820,884,391
Investment 751,725,200 1,271,720,900 1,662,050,500
Cash balance 401,499,734 402,334,262 743,453,061
Correspondent deposit 1,982,712,404 2,338,976,861 2,182,198,944
Government security 750,725,200 1,270,720,900 1,661,050,500
Total asset 13,369,489,962 16,169,267,944 20,260,337,772

2006 2007 2008

Deposit amount 17,591,996,452 2 3,504,045,031 25,854,541,50
Loan amount 13,646,387,225 1 8,616,225,315 25,094,658,077
Average lending rate 12.03% 11.71% 12.52%
Equity capital 1,003,660,214 1 ,134,290,942 2 ,538,573,006
Investment 2063142600 2498328500 1,332,969,100
Cash balance 1,009,628,800 1 ,186,903,866 1 ,394,671,407
Correspondent deposit 2,167,679,978 2 ,679,521,916 2,101,436,244
Government security 2,063,142,600 2,498,328,500 1,331,969,100
Total asset 20,448,667,971 26,941,780,871 3 1,239,393,418

2009 2010
Deposit amount 42,423,092,722 56,344,959,167
Loan amount 38,725,874,774 52,123,903,164
Average lending rate 11.23% 10.64%
Equity capital 2,865,410,755 3,920,011,486
Investment 1,914,504,030 2,859,354,561
Cash balance 5,033,532,439 4,857,542,203
Correspondent deposit 731,150,321 1,036,199,077
Government security 1,610,674,000 2,331,134,100
Total asset 47,978,552,952 63,619,797,799

**Average Lending rate= (Interest Income from loan and advances)/ total loan and advances amount

7
Analysis:
Calculation of Liquidity ratio of Eastern Bank Limited:
(cash+ correspondent deposit+ Govt.securities)
Liquidity ratio1996=

(368163130+ 2661796800+ 0)
=
11207695266

= 0.270346388 or 27.03%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio1997=

(378203225+3590490550+234023720)
=
12887456690

= 0.326109146 or 32.61%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio1998=

(432983861+3208266472+452111400)
=
15161049190

= 0.269991983 or 27%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio1999=

(549620301+3721577187+993181350)
=
18555049770

= 0.283716773 or 28.37%

8
 (cash+ correspondent deposit+ Govt.securities)
Liquidity ratio2000=

(140208854+495886384+1536028260)
=
16879939613

= 0.128680762 or 12.87%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2001=

(119,588,127+4,390,324,030+945,949,360)
=
18,284,013,368

= 0.298395183 or 29.84 %

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2002=

(1081658488+3,244,189,503+1,659,258,912)
=
18,133,284,340

= 0.330061934 or 33.01%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2003=

(1,069,934,923+1,546,429,840+3,331,354,100)
=
18,715,682,398

= 0.317793321 or 31.78%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2004=

(1108059109+758,876,547+4,041,035,400)
=
23,043,468,479

= 0.256383758 or 25.65%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2005=

(1333528137+745,258,450+4,663,009,900)
=
27,399,954,469

9
 = 0.246051376 or 24.61%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2006=

(2,167,355,515+929228265+5752836137)
=
35970642294

= 0.246017845 or 24.60 %

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2007=

(2,347,303,278+1546715804+5620577176)
=
42579485856

= 0.223454935 or 22.35%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2008=

3,518,546,161+3,418,017,092+4,923,272,085()
=
54,598,268,072

= 0.217219992 or 21.72%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2009=

(3402440722+6,779,156,934+7,716,875,500)
=
69,870,738,519

= 0.256165507 or 25.62%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2010=

(3681327496+4,687,412,895+6,828,141,845)
=
82,488,576,181

10
 = 0.184230144 or 18.42%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2011=

(6,022,757,136+3,531,317,370+12,841,220,762)
=
117,580,719,482

= 0.190467411 or 19.05%

11
Calculation of Liquidity ratio of First Security Islami bank Limited:

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2003=

(401499734+1982712404+750725200)
=
13369489962

= 0.234484438 or 23.44%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2004=

(402334262+2338976861+1270720900)
=
16169267944

= 0.248127005 or 24.81%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2005=

(743453061+2182198944+1661050500)
=
20260337772

= 0.226388255 or 22.64%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2006=

(1009628800+2167679978+2063142600)
=
20448667971

= 0.256273484 0r 25.56%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2007=

(1186903866+2679521916+2498328500)
=
26941780871

= 0.236241038 or 23.62%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2008=

12
 (1394671407+2101436244+1331969100)
=
31239393418

= 0.154550912 or 15.46%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2009=

(5033532439+731150321+1610674000)
=
47978552952

= 0.153721951 or 15.37%

(cash+ correspondent deposit+ Govt.securities)

Liquidity ratio2010=

(4857542203+1036199077+2331134100)
=
63619797799

= 0.129281696 or 12.92%

13
Regression Analysis Of Eastern Bank:
With the Help of SPSS we can find out the regression analysis. The outputs are given below:

b
Va riables Entere d/Re moved

Variables
Model Variables Entered Removed Method
1 Liquidity_ratio, Lending_rate,
a . Enter
Depos it_amount, Inves tment
a. All reques ted variables ent ered.
b. Dependent Variable: Loan_Amount

Model Summary

Adjusted Std. Error of

Model R R Square R Square the Estimate
1 .995a .989 .985 2765411973
a. Predictors: (Constant), Liquidity_ratio, Lending_rate,
Depos it_amount, Investment

From the table above we can find the R2 which is .989 which indicates the of variation in the
dependent variable, Y explained by the set of independent variable X1, X2, X3

Interpretation: We can conclude that the independent variables explain or account for
98.9% of variation in loan amount.

The adjusted R2 is .985. So if we compare R2 (.989) with adjusted R2 (.985) then the difference
we find is very small. Adjusted R2 is used to balance the effect of the number of independent
variables has on the coefficient of multiple determination.

14
 ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regres sion 7732074876920670000000.000 4 1933018719230169000000 252.765 .000a
Residual 84122537214344500000.000 11 7647503383122230000.000
Total 7816197414135020000000.000 15
a. Predictors: (Constant), Liquidity_ratio, Lending_rate, Deposit_amount, Investment
b. Dependent Variable: Loan_Amount

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) -11463177508.107 7902676658.336 -1.451 .175
Depos it_amount .690 .086 .681 8.010 .000
Lending_rate 16977059130.954 29073222023.573 .025 .584 .571
Investment 1.927 .465 .378 4.140 .002
Liquidity_ratio 24806028707.433 16601254808.791 .060 1.494 .163
a. Dependent Variable: Loan_Amount

Regression Equation for Eastern bank is

Y=a+b1x1+b2x2+b3x3+b4x4
Where

Y= Loan Amount (dependent variable)

X1= Deposit amount (independent variable)

X2= Lending rate (independent variable)

X3=Investment (independent variable)

X4= liquidity ratio (independent variable)

A= Constant or intercept

So, the Multi regression equation is:

Y= -11463177508.11+ 0.69x1+ 16977059130.95x2+ 1.93x3+ 24806028707.43x4

15
Regression Equation for Fast Security Islami bank limited is:

With the Help of SPSS we can find out the regression analysis. The outputs are given below:

Va ria bles Entere d/Rem ovebd

Variables
Model Variables Ent ered Removed Method
1 Liquidity_ratio, Investment, a
. Enter
Lending_rate, Deposit _amount
a. All reques ted variables entered.
b. Dependent Variable: Loan_Amount

Model Summary

Adjusted Std. Error of

Model R R Square R Square the Estimate
1 .995a .989 .975 2574021205
a. Predictors: (Constant), Liquidity_ratio, Investment,
Lending_rate, Deposit_amount

From the table above we can find the R2 which is .989 which indicates the of variation in the
dependent variable, Y explained by the set of independent variable X1, X2, X3

Interpretation: We can conclude that the independent variables explain or account for
98.9% of variation in loan amount.

The adjusted R2 is .985. So if we compare R2 (.989) with adjusted R2 (.975) then the difference
we find is very small. Adjusted R2 is used to balance the effect of the number of independent
variables has on the coefficient of multiple determination.

16
 ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regres sion 1807986517867761000000.000 4 451996629466940000000.000 68.220 .003a
Residual 19876755485229570000.000 3 6625585161743190000.000
Total 1827863273352990000000.000 7
a. Predictors: (Constant), Liquidity_ratio, Investment, Lending_rate, Deposit_amount
b. Dependent Variable: Loan_Amount

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 39095158725.417 17345945634.242 2.254 .110
Depos it_amount .287 .102 .324 2.810 .067
Lending_rate 74364372728.669 131409173812.610 .056 .566 .611
Investment 5.693 2.496 .242 2.281 .107
Liquidity_ratio -209901405092.548 26767194353.752 -.653 -7.842 .004
a. Dependent Variable: Loan_Amount

Y=a+b1x1+b2x2+b3x3+b4x4
Where

Y= Loan Amount (dependent variable)

X1= Deposit amount (independent variable)

X2= Lending rate (independent variable)

X3=Investment (independent variable)

X4= liquidity ratio (independent variable)

A= Constant or intercept

So, the Multi regression equation is:

Y= 39095158725.42+ 0.287x1+ 74364372728.67x2+ 5.69x3- -209901405092.5x4

17