Internship Report on Performance Evaluation of BRAC Bank Limited

Abstract

BRAC Bank Limited is the fastest growing bank in Bangladesh from the last two years. BRAC has 63 percent share of this bank and IFC has 19 percent and ShoreCap International has 18 percent share. The brand name "BRAC" is very well known in this country. So the bank gets an advantage from the name, it is also well accepted by people. The Bank offers lucrative services to the market compared to its competitors. Since its inception profit of BRAC Bank Ltd has increased in every year. From the end of 2003 to the end of 2004 the percentage change in net profit was 227.94; it is the highest change in net profit. Every year it earns positive return which has a positive impression on shareholders. So the bank is able to maximize its shareholders equity. In 2004 BRAC Bank's 0.99 percent return on assets is well above the 0.70 percent average for the industry. And in 2003 BRAC Bank's 0.67 percent return on assets is well above than the 0.50 percent average for the industry. In 2004 BRAC Bank's 16.83 percent return on equity is well above the 13 percent average for the industry. And in 2003 BRAC Bank's 7.65 percent return on equity is well above the 9.8 percent average for the industry. So the bank's profitability is above than industry average. The bank maintained Capital Adequacy Ratio 5.97%, 8.81% and 12.53% consecutively in 2005 , 2004 and 2003. But in 2005 and 2004 the ratio is bellow 9%. As the risk weighted assets increase, the bank should increase its capital adequately to maintain required requirement. There are some problems with the bank but the overall performance of the bank is excellent.