“Financial Performance Analysis of First

Security Islami Bank Limited” A study on

Mohakhali Branch, Dhaka”

Submitted To:
Sayed Farrukh Ahmed

Assistant Professor
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University

Submitted By:
Md. Anamul Hoque

ID: 131-11-2845
Program: MBA
Major: Accounting
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University

Date of Submission: 24 November, 2018

i
Letter of Transmittal

24.11.2018

To
Sayed Farrukh Ahmed
Assistant Professor
Department of Business Administration
Faculty of Business & Economics
Daffodil International University

Subject: Submission of the internship report on „Financial Performance Analysis of

First Security Islami Bank Ltd.” (FSIBL): A Study on Mohakhali Branch, Dhaka‟.

Dear Sir;
This is a great pleasure for me to submit the internship report, which is a partial requirement
for the Internship Program of Daffodil International University for MBA students. I have
prepared my internship report on „Analysis of Financial Performance of First Security Islami
Bank Ltd.” (FSIBL): A Study on Mohakhali Branch, Dhaka‟.
I have tried to explain my learning and experience in this report which I have gathered from
practical operations.

For your kind consideration and perusal, I would like to mention that there might be some
mistakes due to limitations of my knowledge, wisdom and time constraint. In spite of various
shortcomings I have tried to cover all relevant affairs. I am confident that my report will be able
to meet up your expectation and you will appreciate my endeavor and the report emphatic.

I will be very glad if the report can serve its actual purpose and I am ready to explain
anything to you if necessary.

Sincerely yours,

Md. Anamul Hoque

ID. No. 173-14-2508
Program: MBA
Major in Accounting
Daffodil International University

ii
Certificate of Approval

I am pleased to certify that the Internship report on Financial Performance Analysis of First
Security Islami Bank Ltd.” (FSIBL): A Study on Mohakhali Branch, Dhaka conducted by
Md.Anamul Hoque bearing ID No. 173-14-2508 of MBA Program, and Department of
Business Administration has been approved for presentation and defense. Md. Anamul Hoque
worked with First Security Islami Bank Limited, Mohakhali Branch, Dhaka as an intern under
my supervision.

Md. Anamul Hoque bears a strong moral character and a very pleasing personality. It
has indeed been a great pleasure working with him. I wish his all success in life.

……………………………..

Signature of the Supervisor

SayedFarrukh Ahmed

Assistant Professor
Department of Business Administration
Faculty of Business & Economics
Daffodil International University

iii
Acknowledgement

An internship program is a very important and essential means for acquiring practical
knowledge because the knowledge of a student does not get fulfilled until he acquires
knowledge theoretically and practically.

For the completion of this study I can‟t deserve all praise. There were a lot of people who
helped me by providing valuable information, advice and guidance for the completion of this
report in the scheduled time.

First I want to express my gratitude to Almighty Allah for giving me the strength and the
composure to finish the task within the scheduled time.

I would also like to convey my gratitude to my internship supervisor Mr. Sayed Farrukh
Ahmed (Assistant Professor) for his continuous support. His guidance helps me to separate
the important and necessary details from the unnecessary certainly helped me to stay on the
correct track.

I acknowledge my indebtedness to the executives who extended their wholehearted co-

operation during my internship period. I would like to extend my gratitude to Md Abul
Kashem, (Vice President & Manager), Masud Hossain, (AVP & Manager Operation), Md.
Zanemul Haque, (Probationary Officer), First Security Islami Bank, Mohakhali Branch.
Finally, I would like to render my gratitude and my heartiness thank to my supervisors and
other personnel for their guidance to prepare my internship report. They have been extremely
co-operative and willing to help at all time.

iv
Executive Summary

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 carries banking activities through its One Hundred And Seventy Two (172)
branches in the country. The commercial banking activities of the bank encompass a wide
range of services including accepting deposits, making loans, discounting bills, conducting
money transfer and foreign exchange transactions, and performing other related services such
as safe keeping, collections and issuing guarantees, acceptances and letter of credit.

The objectives of the study have been outlined to know the total assets , liabilities and
different types of Investment schemes, lending procedure& approval process, credit
assessment &risk management process, identify overall financial performance of and make
some recommendations to solve those problems of FSIBL.

The report is separated in different chapters. The first chapter contains introduction,
background, scope, objectives, methodology and limitations of the study. The second chapter
contains the overview of First Security Islami Bank Limited in details.

In the third chapter, the analysis Financial Performance of First Security Islami Bank Limited
is described deeply. In those descriptions different types of financial statement, Components
of Financial Statements, Classification of Assets and Liabilities, Limitation of Financial
Statement , Ratio Analysis of First Security Islami Bank Limited. Chapter four contains
findings, recommendations and conclusion. In this whole report discussion about the
Financial Performance of First Security Islami Bank Limited are designed in step by step.

v
Serial TABLE OF CONTENTS Page No:-
No:-
1.0 Chapter One : Introduction 01

1.1 Introduction 02

1.2 Background of the Study 03

1.3 Scope of the Study 03

1.4 Objectives of the study 04

1.5 Methodology of the study 05

1.6 Limitations of the study 06

2.0 Chapter: Two 07

Overview of the Organization

2.1 Organization 08

2.1.1 Historical Background of the Organization 08

2.1.2 Corporate Information &.Shariah board 09-10

2.1.3 Hierarchical Structure of FSIBL 11

2.1.4 Vision 12

2.1.5 Mission 12

2.1.6 Core Values 12

2.1.7 Organizational Goals 12

2.1.8 Two-Years financial information of FSIBL 13-14

3.0 Chapter: Three 15

Financial Performance Analysis of FSIBL

3.1 Financial Statements 16

3.2 Components of Financial Statements 16-17

3.3 Techniques to Financial Statements Analysis: 17

vi
3.4 Classification of Assets and Liabilities 18-19
3.5 Limitation of Financial Statement 19

3.6 Building Blocks of Financial Statement Analysis 19-20

3.7 Comparative Statements 20

3.8 Comparative Balance Sheets 20

3.9 Comparative Income Statements 20-21

3.10 Common-Size Statements 21

3.11 Common-Size Balance Sheet 21

3.12 Common-Size Income Statements 21

3.13 Common-Size Graphics 21

3.14 Summary of Ratios 22

3.15 Ratio Analysis of First Security Islami Bank Limited 22-23

3.16 Reconstruction of Financial Statements of FSIBL 23

3.17 Ratio Analysis 23

3.18 Assumption of Ratio Analysis 23-24

3.19 Purpose and use of ratio Analysis 24-46

4.0 Chapter- Four 47

Findings, Recommendations, Conclusion

4.1 Findings 48
4.2 Recommendations 49-50

4.3 Conclusion 51

References 52

Appendix 53-55

vii
Abbreviations:

FSIBL- First Security Islami Bank Limited

OD- Overdraft

CC- Cash Credit

SME- Small and Medium Enterprise

RM- Relationship Manager

KYC- Know Your Customer

FSS- Financial Spread Sheet

AD- Authorized Dealer

CL- Consumer Loan

FDR- Fixed Deposit Receipt

LIM- Loan against Imported Merchandise

PAD- Payment against Documents

CIB- Credit Information Bureau

HOM- Head of Marketing

CRM- Credit Risk Management

CRG- Credit Risk Grading

NPL- Non-Performing Loan

RU- Recovery Unit

viii
Chapter-One: Introduction

1
1.1 Introduction
A bank is an indispensable organization in modern economy. It plays a significant role in the
economic development of a country and forms the core of money market in an advanced
economy. Globally the banking process and its area of operation are increasing day by day. It
is also changing due to technological innovation, deregulation, globalization etc. All these are
happening because of its demand. Basically bank take deposits from customers against
interest and lend it to the borrowers against interest for certain period of time. For getting
loan, both individuals and organizations depend on banks. After detailed analysis banks grant
loan to borrowers and disburse it among them. Besides loan banks give various types of
services to their customers. First Security Islami Bank limited is one of the largest and oldest
private sectors Sariah based commercial bank in Bangladesh, with years of experience. First
Security Islami Bank plays a vital role in economic development of our country.

My study topic is analysis on financial performance of First Security Islami Bank Limited; A
study on Mohakhali Branch, Dhaka. The main aim of my study is to acquainted knowledge
about financial performance measure of First Security Islami Bank Limited.

2
1.2 Background of the Study:
No knowledge is fully complete unless it is fully supported events on ground. Whatever may
be the quality of theoretical knowledge, it is not complete without practical implication on
ground. This realization is more pronounced in the study of Business Administration where
experience on ground plays a dominant role.

Masters of Business Administration (MBA) is designed with an excellent combination of

practical and theoretical aspects. After completing the MBA to fulfill the requirement of this
Degree, I was assigned to pursue Internship in First Security Islami Bank Limited, Mahakhali
Branch, Dhaka.

1.3 Scope of the Study:

The study covers financial activities of FSIBL. This report gives a narrative overview of all
department of Mohakhali branch, Dhaka of FSIBL. It consists of my observation and on the
job experience during the internship period. This report incorporates the different aspects of
financial performance tools and techniques and its effect on the performance of the bank.

3
1.4 Objectives of the study:

The main objective of the report is to analysis the financial performances of First Security
Islami Bank Limited (FSIBL): Study on Mohakhali Branch with fulfilling the requirement of
MBA program. However, the objective behind this study is something broader. Objectives of
the report are summarized in the following manner-

  
To present an overview of First Security Islami Bank Limited.
 
To analyze the financial performances of First Security Islami Bank Limited of different
 years. 
Toprovide recommendations on the basis of the findings of the study.

4
1.5 Methodology of the study:
Sources of Data:

A) Primary Sources
  Direct
. Observations.
  
Practical Deskwork.
  
Face-to-Face conversation with the Officers.
 
Direct lectures of honorable teachers of Finance & Banking

Method of data Collection:

▪ Personal Interview: Face to face conversation and in-depth interview with the
respective officers and clients of the branch.

▪ Personal Observation: Observation of the Financial Performance activities.

B) Secondary Sources

▪ Annual reports of First Security Islami Bank Limited.

▪ Manuals of Financial Performance of FSIBL

▪ Published materials and office circulars of FSIBL

▪ Website of the FSIBL.

5
1.6 Limitations of the Study:
From the beginning to end, the study has been conducted with the intention to make it as a
complete and truthful one. However, many problems appeared in the way of conducting the
study.

The study suffers from the following limitations:

1. Lack of proper time:

Time period of this study is really short. I have only 3-month to spend in branch and to
complete this report. So I am unable to go in depth of the study. Most of the time the
officers were busy and were not able to give me much time.

2. Insufficient data:

Some desired information could not be collected due to privacy of the company.

3. Others limitations: As a newcomer I have little experience in this regard. And many
practical matters have been written from my own observation that may vary from
person to person.

4. Lack of experience of writing internship report.

6
Chapter- Two: Overview of the
Organization

7
2.1 Organization:

First Security Islami Bank one of the largest and oldest private sector Sariah based
commercial bank in Bangladesh, with years of experience. Adaptation of modern technology
both in terms of equipment and banking practice ensures efficient service to clients.172
branches at home create efficient networking and reach capability. First Security Islami Bank
is a bank that serves both clients and country.

2.1.1 Historical Background of the Organization

Name of the Company: FIRST SECURITY ISLAMIBANK LTD.

Legal form:

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 carries banking activities through its One Hundred And Seventy Two (172)
branches in the country. The commercial banking activities of the bank encompass a wide
range of services including accepting deposits, making loans, discounting bills, conducting
money transfer and foreign exchange transactions, and performing other related services such
as safe keeping, collections and issuing guarantees, acceptances and letter of credit.

The management of the bank is vested in a 10-member board of director with the managing
director as the chief executive. The bank carries out almost all types of Sariah based
commercial banking activities. 172 branches covering all major cities of Bangladesh.

8
2.1.2 Corporate Information

Name of the Company First Security Islami Bank Ltd.

Chairman Mr. Mohammad SaifulAlam
Vice Chairman Mr. Alhaj Mohammad Abdul Maleque
Managing Director Mr. Syed Waseque Md. Ali
Company Secretary Mr. JahidulQuddus Mohammad Habibullah
Legal Status Public Limited Company
Date of Incorporation August 29, 1999
Date of August 29, 1999
Commencement of
Business
Date of getting license September 22, 1999
from Bangladesh Bank
Date of Opening of October 25, 1999
First Branch
Corporate Head Office House- SW(I) 1/A, Road-8, Gulshan-1, Dhaka-1212,
Bangladesh.
Registered Office 23, Dilkusha, Dhaka-1000, Bangladesh
Line of Business Banking
Authorized Capital Tk.10,000 Million
Paid up Capital Tk.6,788.74 Million
Date of consent for 04 June 2008
IPO
Phone 88-02-9888446 (Hunting), 8402613-8402625 (ICT Division).
Fax 880-02-9891915
E-mail [email protected] ,[email protected]
SWIFT Code FSEBBDDH
Auditors ShafiqBasak& Co, Chartered Accountants, Shatabdi Centre
(6 Floor), 292, Inner Circular Road, Fakirapool, Motijheel,
Dhaka. Phone: 02- 7192098, Tel/ Fax: 02- 7194870, E-
mail:[email protected]
Legal Advisor The Law Counsel, Barrister & Advocates, City Heart (7th
Floor), Suit No. 8/8, 67, NayaPaltan, Dhaka-1000. Phone:
9349647-8, Fax: 9349866, 9567029, E-
mail: [email protected].
Tax Consultant K.M. Hasan FCA, K.M. Hasan& Co. Chartered Accountants,
Dhaka Office
Home Tower Apartment (8 th& 9 th Floor), 87,
NewEskatonRoad , Dhaka – 1000, Phone: 9351457,9351564,
Fax:
9345792-112.

9
Shariah board: Shariah Members

Name Position Address

Sheikh (Moulana) Mohammad Chairman BaitushSharaf Complex,
Qutubuddin Shah Abdul Jabbar(R)
Road Dhanialapara,
Chittagong- 4100.
Mufti Sayeed Ahmed Vice Chairman Markaz-e- Eshaete Islam
2/2 Darus Salam, Mirpur,
Dhak
Moulana M. Shamaun Ali Member 491, Wireless Railgate,
Secretary Bara Moghbazar, Dhaka-
1217

10
2.1.3Hierarchical Structure of First Security Islami Bank Limited (FSIBL):
Managing Directors

Deputy Managing Director

Executive Vice President

SENIOR VICE PRESIDENT

Vice President

First Vice President

Assistant Vice President

Senior Principal Officer

Principal Officer

Senior Officer

Officer

Assistant Officer

11
2.1.4 Vision
To be the bank of first choice through maximizing value for our clients, shareholders
& employees and contributing to the national economy with social commitments.

2.1.5 Mission
To offer financial solutions that create, manage and increase our clients‟ wealth
while improving the quality of life in the communities we serve.

2.1.6 Core Values

  
We put our customers first.
  
We emphasize on professional ethics.
  
We maintain quality at all levels.
  
We believe in being a response FSIBL corporate citizen.
  
We say what we believe in.

2.1.7 Organizational Goals

First Security Islami Bank will be the absolute market leader in the number of loans given to
small and medium sized enterprises throughout Bangladesh. It will be a world-class
organization in terms of service quality and establishing relationships that help its customers
to develop and grow successfully.
 
Realistic deposit mobilization plan.
 
Appropriate management structure, systems, procedures and approaches.

12
Chapter-Three:
Financial Performance Analysis of
First Security Islami Bank Limited

15
3. Financial Statements:

Financial Statements are the summary of the financial activities of a firm or an organization. AIS
Board define the financial statement, “A financial statement (or financial report) is a formal
record of the financial activities of a business, person, or other entity. Relevant financial
information is presented in a structured manner and in a form easy to understand.”

3.2 Components of Bank’s Financial Statements

Since a bank is a financial institution, its financial statements are different from other
organization. Bank‟s Financial Statements include an additional component which is called
Liquidity Statement. The basic components of bank‟s financial statements are given below.
Balance Sheet
Statement of Profit and Loss Account / Income Statement
Cash Flow Statement
Statement of Changes in Equity
Liquidity Statement
Notes to these statements

Statement of Profit and Loss Account / Income Statement:

Income statement is a financial report that shows an entity's results of financial performance
over a specific time period. The time period usually covers for a month, quarter, half year or
year.
16
Statement of Changes in Equity:
Statement of changes in equity is a financial statement that presents a summary of the changes in
shareholders‟ equity accounts in a company over an accounting period. It reconciles the opening
balances of equity accounts with the closing balances.

Financial Statements Analysis:

Financial Statements Analysis is the process of reviewing and evaluating a company's financial
statements (such as the balance sheet or profit and loss account statement), thereby gaining an
understanding of the financial health of the company and enabling to make more effective
policies.

3.3Techniques to Financial Statements Analysis:

A bank‟s financial statements are always different from general companies. So, banks‟ financial
statements analysis is critical. Among the stated techniques the ratio analysis is mostly used for
analysis of any organization‟s financial statements.

17
3.4Classification of Assets and Liabilities
The first step in the analysis of balance sheet is the scrutiny and examination of different
items of assets and liabilities and they are classified into various categories.

Assets:
In the Balance sheet the assets are divided into three major categories in general when
organizations prepare the balance sheets. These are as follows:

• Current Assets
• Fixed/Long-Term Assets
• Other Assets

Current Assets:

Current assets are those assets, which changes their form in a short period and are exchanged for
cash.

Liabilities:

In the Balance sheet the liabilities are broadly divided into two categories when organizations
prepare the balance sheets. These are as follows:

• Current Liabilities
• Long-Term Liabilities

18
.

3.5Limitations of Financial Statements:

Though Balance Sheet and Profit and Loss Account of a company are important sources for the
analysis, the financial data contained therein have certain limitations. The financial data depict
the state of affairs or the operating results in numerical terms. Sometimes wrong or illogical
conclusion may be derived from them if attention is not given to other factors that are not
evident from the financial statements. For example, the production of a manufacturing company
may fall due to labor strike or non- availability of raw materials due to transport bottlenecks, but
it should not be interpreted as decline in the efficiency or profitability of the concern. It is,
therefore, essential that the investor should look beyond the financial data and make future
enquiries regarding the causes for any variation or abnormal trend noted in analyzing the data.
Besides, the financial statements represent the performance of the business concern. Any
meaningful analysis of these statements will depend upon the projections of the future trend.
Past events are just guides as to what may reasonably be expected to occur in future.

3.6Building Blocks of Financial Statement Analysis:

Financial statements analysis focuses on one or more elements of a company‟s financial
condition or performance. Our analysis emphasizes some areas of inquiry with varying degrees
of importance.

19
3.7Comparative Statements:

Comparing amounts for two of more successive periods often helps in analyzing financial
statements. Comparative financial statements facilitate this comparison by showing financial
amount in side-by-side columns on a single statement, called comparative format. By using
comparative financial statements financial changes can be expressed in both dollar amount and
percentage.

Computation of Dollar Change and Percent Change:

Computing financial statements over time periods generally two-to-five years is often done by
analyzing changes in line items. A change analysis usually includes analyzing absolute dollar
amount changes and percent changes. Both analyses are relevant because dollar changes can
yield large percentage changes inconsistent their importance. Dollar amount is necessary to
retain a proper perspective and to assess the importance of changes. The computation of dollar
change for a financial statement item as follows:
Dollar change = Analysis period amount - Base period amount

3.8Comparative Balance Sheets:

Comparative balance sheets consist of balance sheet amounts from two or more balance sheet
dates arranged side by side. Its usefulness is often improved by showing each item‟s dollar
change and percent change to highlight large changes.

Trend Analysis:

Trend analysis is also called trend percent analysis or index number trend analysis. It is a form
of horizontal analysis that can reveal patterns in data across successive periods.

20
Vertical Analysis:

Vertical analysis is a tool to evaluate individual financial statement items or a group of items in
terms of a specific base amount. We usually define a key aggregate figure as the base, which for
an income statement is usually revenue and for a balance sheet is usually total assets.

3.12Common-Size Income Statements:

Analysis also benefited from using a common-size income statement. Revenue is usually the
base amount, which is assigned a value of 100%. Each common-size income statement items
appears as a percent of revenue. If we think of the 100% revenues amount as representing one
sales dollar, the remaining items show how each revenue dollar is distributed among costs,
expenses and income.

3.13Common-Size Graphics:

Two of the most common tools of common-size analysis are trend analysis of common-size
statements and graphical analysis. The trend analysis of common-size statements is similar to
that of comparative statements discussed under horizontal analysis. It is not illustrated here
because the only difference is the substitution of common-size percent for trend percent. Instead,
this section discusses graphical analysis of common-size statements. Pie charts and bars are
commonly sued for common-size graphics analysis of common-size statement analysis. For
common-size income statement analysis, the revenue is considered as the base of the pie chart
because revenue affects nearby every item of an income statement.

21
3.14Summary of Ratios:

Summarizes the major financial statement analysis ratios described in this chapter. This summary
includes each ratio‟s title, its formulas, and the purpose for which it is commonly used.

Activity Ratios

1) Inventory turnover = cost of goods sold ÷ average inventory

2) Receivables turnover = net revenue ÷ average receivables

3) Payables turnover = purchases* ÷ average payables

Solvency Ratios
1) Debt-to-assets ratio = total liabilities ÷ total assets
2) Debt-to-capital ratio = total debt* † (total debt* + total shareholder‟s equity)
3) Debt-to-equity ratio =
total debt* † total shareholder‟s equity
4) Interest coverage ratio = earnings before interest and taxes* ÷ interest payments
Profitability Ratios

1) Gross profit margin =

2) Operating profit margin
gross income ÷ net revenue
3) Net profit margin =
= operating income ÷ net revenue
4) Return on assets (ROA)
net income ÷ net revenue
5) Return on equity (ROE) = net income ÷ total assets
= net income † total stockholder‟s equity


*calculated terms:
 Purchases = cost of goods sold + ending inventory – beginning inventory
 total debt = notes payable + current portion of long-term debt + long-term debt
 earnings before interest and taxes = net income + income taxes + interest expense

3.15Ratio Analysis of First Security Islami Bank Limited:

The objective of this report is evaluating First Security Islami Bank Limited‟s financial
performance. So that here discuss recent year‟s financial ratio of FSIBL Ltd.
A bank is a financial institution whose main job is to collect fund from surplus units and invest
in deficit units and making profits. Owners, depositors and shareholders of a bank invest to a

22
3.16 Reconstruction of Financial Statements of FSIBL:

The all core financial statements of FSIBL are obtained. These statements include Balance
Sheet, Income Statement, Statement of Cash Flows, Statement of Equity, Statement of Liquidity
and their notes for five years. But, these are not in the format which is required for different
financial ratio analysis. So, some of these financial statements are reconstructed in various
format for the interest of the analysis. The renovated statements are mainly concerned based on
the duration of the accounts which is very important for ratio analysis. For preparing these
financial statements no fictional data are used, only the real financial data from notes of
statements are used according their duration and types.

3.17Ratio Analysis:
A ratio analysis is a quantitative analysis of information contained in a company‟s financial
statements. Ratio analysis is based on line items in financial statements like the balance
sheet, income statement and cash flow statement; the ratios of one item or a combination of
items to Another item or combination is then calculated.

23
3.18Assumption of Ratio Analysis:

The most common mode in which financial statement data are summarized is the ratio form.
Motivations for examining data in ratio form include:

 To exploit an observedempirical regularity between a financial ratio and the estimation of variable of
interest.


24
bank to get profit or interest as a reward in return. But their profit is depends on the bank‟s
financial performance. It depends on how a bank operates itself, how efficiently management
operates the operations of a bank. To understand the financial performance of a bank, the
investor should analyze the financial statements of that bank. They may use different financial
ratios to analyze the financial performance of a bank. By analyzing the financial performance of
a bank investors and management can know the strengths and weakness of the bank, and can
take proper policy making decisions for future. To analyze the financial performance of First
Security Islami Bank Limited (FSIBL), different financial ratios are used to determine the
strengths and weakness of FSIBL. Actually, to understand the overall financial position and
performance of FSIBL is the main aim of this chapter.

25
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2017
Note(s) 2017 2016
Taka Taka
PROPERTY AND ASSETS
2,369,319,898 1,816,338,179

Cash in Hand
Cash in hand (Including Foreign Currencies) 3(a)
Balance with Bangladesh Bank & its Agent Banks 3.1 21,457,534,554 16,131,320,942
(Including Foreign Currencies)
Balance with other Banks and Financial Institutions 4(a) 23,826,854,451 17,947,659,121
532,102,415 842,645,333
In Bangladesh
Outside Bangladesh 366,064,370 423,996,755
Placement with Banks & other Financial Institutions 5 898,166,785 1,266,642,088
10,736,619,899 7,196,666,624

Investments in Shares & Securities 6(a) 9,100,000,000 9,150,000,000

Government
Others 2,502,525,517 1,680,581,919
Investments 7 (a) 11,602,525,517 10,830,581,919
201,932,884,191 166,581,331,180
General Investment etc.
Bills Purchased and Discounted 7,362,624,894 7,194,802,194
Fixed Assets including Premises 8(a) 209,295,509,085 173,776,133,374
3,491,020,793 3,268,326,670

Other Assets 9(a) 16,439,780,117 13,529,293,052

Non-Banking Assets - -
Total Assets 276,290,476,647 227,815,302,848
LIABILITIES AND CAPITAL 5,000,000,000 3,000,000,000

Liabilities
Placement from Banks & other Financial Institutions 10
Deposits and Other Accounts 11 16,876,607,874 13,899,504,009
Mudaraba Savings Deposits
Mudaraba Term Deposits 138,266,642,919 111,657,941,041
Other Mudaraba Deposits 42,123,348,876 40,060,818,730
25,629,690,923 19,406,875,568
Al-Wadeeah Current & Other Deposit Accounts 11.2(a) 5,233,509,848 5,031,314,320
Bills Payable 11.3 277,925,332 236,879,638
Cash Waqf Fund 228,407,725,773 190,293,333,306
6,400,000,000 3,000,000,000

22,260,690,365 17,306,863,759
FSIBLMudaraba Subordinated Bond 12 38,392,503 21,775,365
Other Liabilities 13(a) 262,106,808,641 213,621,972,430
Deferred Tax Liabilities/ (Assets) 14 (a) 276,290,476,647 227,815,302,848
Total Liabilities
Total Liabilities & Shareholders' Equity of the Group 18(b)

26
OFF-BALANCE SHEET
AS AT 31 DECEMBER 2017

2017 2016
Taka Taka

CONTINGENT LIABILITIES

28,726,126,41
Acceptances and Endorsements
4 23,002,645,081
Irrevocable Letters of Credit (including Back to 20,910,040,28
Back Bills) 9 21,928,766,660
14,094,167,94
Letters of Guarantee 6 11,485,872,882
Bills for Collection 4,239,277,561 3,434,061,967
Other Contingent Liabilities - -
67,969,612,21
Total 0 59,851,346,590
OTHER COMMITMENTS - -

Total Off Balance Sheet Items including

67,969,612,21
Contingent Liabilities 0 59,851,346,590

27
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2017

2017 2016
Taka Taka

Investment Income
18,608,909,537 16,966,286,841
Profit paid on Deposits 10,624,952,149 9,576,406,736
Net Investment Income 7,983,957,388 7,389,880,105
Income from Investment in Shares/securities 379,028,131 237,611,204
Commission, Exchange and Brokerage 2,016,766,460 1,641,246,704
Other Operating Income 604,729,535 445,679,505
3,000,524,127 2,324,537,414
Total Operating Income 10,984,481,515 9,714,417,519
Zakat Expenses 111,424,295 89,792,573
Other Expenses 780,491,293 623,310,434
Total Operating Expenses 4,757,625,673 3,986,805,828

Profit/(Loss) before Provision 6,226,855,842 5,727,611,690

Provision for Investments 2,569,199,969 1,482,889,673
Other Provisions 95,854,352 39,508,157
Total Provision 2,665,054,321 1,522,397,830
Total Profit/(Loss) before Income Taxes 3,561,801,520 4,205,213,860

Provision for Taxation 2,097,282,797 1,914,165,959

Net Profit/(Loss) after Taxation 1,464,518,723 2,291,047,901

Appropriations
Statutory Reserve 707,025,310 838,438,842

Retained surplus 757,493,413 1,452,609,059

Attributable to:
Equity holders' of the Bank 757,493,325 1,452,608,995

Non controlling Interest 87 64

757,493,413 1,452,609,059
Earning Per Share (EPS) 1.98 3.10

28
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2017
2017 2016
Taka Taka

Cash Flow from operating activities

Investment Income receipt 18,608,909,537 16,966,286,841

Profit paid on deposits (9,159,242,171) (6,944,662,524)
Dividend receipts 379,028,131 237,611,204
Fees & commission receipt 993,792,501 885,417,558
Cash payments to employees (2,927,582,876) (2,473,412,961)
Cash payments to suppliers (141,197,275) (128,080,666)
Income tax paid (1,432,091,325) (1,007,764,289)
Receipts from other operating activities 1,627,703,494 1,201,508,651
Payments for other operating activities (1,424,746,664) (1,156,829,476)
Operating profit before changes in operating assets and liabilities 6,524,573,353 7,580,074,338
Increase/Decrease in operating assets and liabilities
Statutory deposits - -
Net trading securities (771,943,598) (3,088,186,683)
Investments to other banks - -
Investment to customers (35,519,375,711) (39,919,283,472)
Other assets (1,478,395,740) (2,323,277,367)
Deposits from other banks 13,953,833,871 482,081,512
Deposits received from customers 22,694,848,619 37,667,626,692
Other liabilities on account of customers - -
Trading liabilities - -
Other liabilities 210,522,856 352,306,146
Sub Total (910,509,703) (6,828,733,172)
Purchase/Sale of subsidiaries - -
B. Net Cash flows from investing activities (486,792,982) (414,301,569)
Cash flows from financing activities
Receipts from issue of debt instruments 2,000,000,000 2,000,000,000
FSIBLMudaraba Subordinated Bond 3,400,000,000 -
Receipts from issue of right shares/ordinary share - -
Dividend paid in cash (1,476,597,364) (1,054,712,411)
C. Net Cash flow from financing activities 3,923,402,636 945,287,589
D. Net increase/(decrease) in cash & cash equivalents (A+B+C) 9,050,673,303 1,282,327,185
E. Cash and cash equivalents at the beginning of the year 26,410,967,833 25,128,640,648

F. Cash and cash equivalents at the end of the year (D+E) 35,461,641,136 26,410,967,833

29
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2017

(amount in Taka)

Share General / Asset Non-

Paid-up Statutory Retained
Particulars Premium Other Revaluation Controlling Total
Capital Reserve Earnings
Account Reserves Reserve Interest

1 2 3 4 5 6 7 8 9=(2 to 8)

4,318,771,
Balance as at 01 January 2017 7,382,986,420 - 137 6,154,312 1,004,065,009 1,481,351,830 1,710 14,193,330,418
Changes in Accounting Policy - - - - - - - -
Net profit for the year - - - - - 1,464,518,556 - 1,464,518,556
707,025,31
Appropriation made during the year - - 0 2,416,229 - (707,025,310) - 2,416,229
Dividend:
-
Cash Dividend - - - -
(1,476,597,284) (1,476,597,284)
- - - - -
Bonus shares - - -
-
Transferred to retained earnings - - - (24,843,666) 24,843,666 - -
Non-controlling interest - -
- - - - 87 87
Total group shareholders' equity 5,025,796,

-
as on 31 December 2017 7,382,986,420 447 8,570,541 979,221,345 787,091,456 1,797 14,183,668,005
5,025,796,
Eligible Capital Under Basel III: 7,382,986,420 447 8,570,541 211,135,945 787,091,456 13,415,580,810

Add: General provision

for unclassified investment 2,886,715,609

Add: FSIBLMudaraba Subordinated 5,440,000,000

Bond Total eligible capital as
on 31 December 2017 21,742,296,419

30
BALANCE SHEET
AS AT 31 DECEMBER 2017

2017 2016

Taka Taka

PROPERTY AND ASSETS

Cash in Hand
Cash in hand (Including Foreign Currencies) 2,369,126,018 1,815,513,100
Balance with Bangladesh Bank & its Agent Banks
(Including Foreign Currencies) 21,457,534,554 16,131,320,942
23,826,660,571 17,946,834,042
Balance with other Banks and Financial Institutions
In Bangladesh 531,828,698 675,742,843
Outside Bangladesh 366,064,370 423,996,755
897,893,068 1,099,739,598
Placement with Banks & other Financial Institutions 10,736,619,899 7,196,666,624

Investments in Shares & Securities

Government 9,100,000,000 9,150,000,000

Others 3,982,523,917 3,160,580,319
13,082,523,917 12,310,580,319
Investments
General Investment etc. 202,682,884,191 167,001,331,180
Bills Purchased and Discounted 7,362,624,894 7,194,802,194
Fixed Assets including Premises 210,045,509,085 174,196,133,374

3,480,818,155 3,257,521,001
Other Assets 14,278,930,250 11,696,703,613
Non Banking Assets - -
Total Assets 276,348,954,946 227,704,178,572
LIABILITIES AND CAPITAL
Liabilities
Placement from Banks & other Financial Institutions 5,000,000,000 3,000,000,000
Deposits and Other Accounts
Mudaraba Savings Deposits 16,876,607,874 13,899,504,009
Mudaraba Term Deposits 138,266,642,919 111,657,941,041
Other Mudaraba Deposits 42,123,348,876 40,060,818,730
Al-Wadeeah Current & Other Deposit Accounts 26,020,865,331 19,678,057,596
Bills Payable 5,233,509,848 5,031,314,320
Cash Waqf Fund 277,925,332 236,879,638
228,798,900,180 190,564,515,334
FSIBLMudaraba Subordinated Bond 6,400,000,000 3,000,000,000

Other Liabilities 21,946,394,909 16,931,081,824

Deferred Tax Liabilities/ (Assets) 37,210,816 20,784,787
Total Liabilities 262,182,505,906 213,516,381,945
Capital/Shareholders' Equity
Paid-up Capital 7,382,986,420 7,382,986,420
Statutory Reserve 5,025,796,447 4,318,771,137
Revaluation reserve on Fixed Assets 979,221,345 1,004,065,009
Retained Earnings 778,444,828 1,481,974,061
Total Shareholders' Equity 14,166,449,040 14,187,796,627
Total Liabilities & Shareholders' Equity 276,348,954,946 227,704,178,572

31
OFF-BALANCE SHEET
AS AT 31 DECEMBER 2017

2017 2016

Taka Taka
CONTINGENT LIABILITIES

Acceptances and Endorsements 28,726,126,414 23,002,645,081

Irrevocable Letters of Credit (including Back to Back Bills) 20,910,040,289 21,928,766,660
Letters of Guarantee 14,094,167,946 11,485,872,882
Bills for Collection 4,239,277,561 3,434,061,967
Other Contingent Liabilities - -
Total 67,969,612,210 59,851,346,590
OTHER COMMITMENTS

Total - -

Total Off Balance Sheet Items including

Contingent Liabilities 67,969,612,210 59,851,346,590

32
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2017

2017 2016
Taka Taka

Investment Income 18,497,613,423 16,883,378,239

Profit paid on Deposits 10,561,959,067 9,544,341,782
Net Investment Income 7,935,654,356 7,339,036,457
Income from Investment in Shares/securities 443,104,547 293,823,613
Commission, Exchange and Brokerage 1,871,303,027 1,552,385,033
Other Operating Income 602,379,425 444,753,870
2,916,786,999 2,290,962,516

Profit/(Loss) before Provision 6,166,211,520 5,698,083,884

Provision for Investments 2,569,199,969 1,482,889,673
Other Provisions 61,885,000 23,000,000
Total Provision 2,631,084,969 1,505,889,673
Total Profit/(Loss) before Income Taxes 3,535,126,551 4,192,194,211

Provision for Taxation 2,079,876,855 1,900,007,218

Net Profit/(Loss) after Taxation 1,455,249,695 2,292,186,993

Appropriations

Statutory Reserve 707,025,310 838,438,842

Retained surplus 748,224,385 1,453,748,151
1,455,249,695 2,292,186,993
Earning Per Share (EPS) 1.97 3.10

33
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2017

2017 2016
Taka Taka

Cash Flow from operating activities

Investment Income receipt 18,497,613,423 16,883,378,239
Profit paid on deposits (9,096,249,089) (6,912,597,571)
Dividend receipts 443,104,547 293,823,613
Fees & commission receipt 848,329,068 796,555,887
Cash payments to employees (2,899,594,762) (2,451,356,865)
Cash payments to suppliers (138,873,815) (126,233,698)
Income tax paid (1,407,386,534) (993,085,088)
Receipts from other operating activities 1,625,353,384 1,200,583,016
Payments for other operating activities (1,385,374,138) (1,128,725,879)
Operating profit before changes in operating assets and liabilities 6,486,922,085 7,562,341,655
Increase/Decrease in operating assets and liabilities
Statutory deposits - -
Net trading securities (771,943,598) (3,088,186,683)
Investments to other banks - -
Investment to customers (35,849,375,711) (40,079,283,472)
Other assets (1,174,840,103) (2,049,678,027)
Deposits from other banks 13,953,833,871 482,081,512
Deposits received from customers 22,814,840,998 37,677,072,385
Other liabilities on account of customers - -
Trading liabilities - -
Other liabilities 320,777,289 157,800,061
Sub Total (706,707,253) (6,900,194,224)
E. Cash and cash equivalents at the beginning of the year 26,243,240,264 25,046,888,745

F. Cash and cash equivalents at the end of the year (D+E) 35,461,173,538 26,243,240,263

34
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2017

(amount in
Taka)

Paid-up Share Statutory General / Asset Retained

Particulars Premium Other Revaluation Total

Capital Account Reserve Reserves Reserve Earnings

1 2 3 4 5 6 7 8=(2 to 7)

Balance as at 01 January 2017 7,382,986,420 - 4,318,771,137 - 1,004,065,009 1,481,974,061 14,187,796,627

Net profit for the year - - - - - 1,455,249,695 1,455,249,695

Appropriation made during the
year - - 707,025,310 - - (707,025,310) -
Dividend:
Cash Dividend - - - - (1,476,597,284) (1,476,597,284)
Bonus shares - - - - - - -
Transferred to retained earnings - - - - (24,843,666) 24,843,666 -
Total group shareholders'
equity
as on 31 December 2017 7,382,986,420 - 5,025,796,447 - 979,221,345 778,444,828 14,166,449,040
Eligible Capital Under Basel
III: 7,382,986,420 5,025,796,447 - 211,135,945 778,444,828 13,398,363,641
Add: General provision
for unclassified investment 2,886,715,609
Add: FSIBLMudaraba
Subordinated Bond 5,440,000,000
Total eligible capital as
on 31 December 2017 21,725,079,250

35
LIQUIDITY STATEMENT - ASSETS AND LIABILITIES ANALYSIS
AS AT 31 DECEMBER 2017

(amount in Taka)

Up to 01 01-03 03-12 01-05 More than Total Total

Particulars Current Previous

Month Months Months Years 05 years Year Year

1 2 3 4 5 6 7=(2+3+4+5+6) 8

Assets
Cash in hand 11,328,806,671 - - - 12,497,853,900 23,826,660,571 17,946,834,042
Balance with other Banks
and
Financial Institutions 652,979,469 244,913,599 - - - 897,893,068 1,099,739,598
Placement with Banks &
other Financial Institutions 2,600,000,000 3,350,000,000 4,786,619,899 - - 10,736,619,899 7,196,666,624

Investment (in Shares &

Securities) 3,973,521,275 3,050,000,000 2,903,458,080 1,115,546,162 2,039,998,400 13,082,523,917 12,310,580,319
Investments 30,798,885,904 39,833,906,713 96,331,705,468 38,178,776,000 4,902,235,000 210,045,509,085 174,196,133,375
Fixed Assets including
premises,
furniture & fixtures etc. - - - 1,740,409,078 1,740,409,078 3,480,818,155 3,257,521,001
Other Assets - - - 7,139,465,125 7,139,465,125 14,278,930,250 11,696,703,613
Non-Banking Assets - - - - - - -
Total Assets 49,354,193,319 46,478,820,312 104,021,783,44748,174,196,365 28,319,961,502 276,348,954,946 227,704,178,572
Liabilities

Placement from Banks &

other
financial institutions 5,000,000,000 - - - - 5,000,000,000 3,000,000,000

Deposits and other accounts 43,177,099,451 45,212,659,906 101,595,007,015 27,678,282,764 11,135,851,043 228,798,900,180 190,564,515,334
Provision and other liabilities - - - 17,595,160,277 10,751,234,632 28,346,394,909 19,931,081,824
Deferred tax liability - - - 37,210,816 - 37,210,816 20,784,787
Total Liabilities 48,177,099,451 45,212,659,906 101,595,007,01545,310,653,858 21,887,085,675 262,182,505,906 213,516,381,945
Net Liquidity Gap 1,177,093,868 1,266,160,406 2,426,776,432 2,863,542,507 6,432,875,827 14,166,449,040 14,187,796,627

36
Ratio analysis of First Security Islami Bank Limited from 2014 to 2017:

37
(A) Current Ratio:

Current ratio is the ratio of current assets of a business to its current liabilities. It is the most
widely used test of liquidity of a business and measures the ability of a business to repay its
debts over the period of next 12 months.

Formula: Current ratio = current assets ÷ current liabilities

Graphical Presentation

(B) Operating profit as percentage of Working Fund:

38
Net working capital is a liquidity calculation that measures a company‟s ability to pay off its
current liabilities with current assets. This measurement is important to management, vendors,
and general creditors because it shows the firm‟s short-term liquidity as well as management‟s
ability to use its assets efficiently.

Formula:Net working capital = Current assets - Current liabilities

Table: Net working capital of FSIBL

(Taka in million)

Analysis:

Net working capital measures the liquidity position of the firm. In 2016 the net working capital
was 40.16% which was gradually increased to 43.53% in 2017. The graph shows that increase
trend of FSIBL‟s liquidity position this indicates that FSIBL has increased its ability to pay short
term obligation out of its currents assets.

39
Profitability Ratio
(A) Earnings per share (EPS)
Earnings per share (EPS) are the portion of a company's profit allocated to each outstanding
share of common stock. Earnings per share serve as an indicator of a company's profitability.

Formula:EPS = net income / average outstanding common shares

Table: Earing Per Share (EPS) of FSIBL

41
(B) Return on Asset (ROA)
Return on Assets (ROA) is an indicator of how profitable a company is relative to its total assets.

Formula: Return on Asset (ROA) = net income ÷ total assets

Table: Return on Asset of FSIBL

40
(C)Return on Equity:

Formula: Return on equity (ROE) =net income † total stockholder‟s equity.

Graphical Presentation:

Figure: Return on Equity

41
Analysis:
The ROE shows fluctuating results over the years. Over this five years period, the value of this
ratio ranged from 10.27% to 16.16%. Out of these four years, year 2016 shows the best
performance and year 2013 shows the worst performance.

(D) Debt Equity Ratio:

A company that finances a relatively large portion of its assets with liabilities is said to have a
high degree of financial leverage. Higher financial leverage involves greater risk because
liabilities must be repaid and often require regular interest payments. The risk that a company
might not be able to meet such required payments is higher if it has more liabilities.
Formula: Debt-to-equity ratio = total debt* ÷ total shareholder’s equity

Figure: Debt Equity Ratio of FSIBL

Analysis:

The debt position of that indicates the amount of other people‟s money being used in attempting
to generate profits. In this salutation FSIBL 2016Debt Equity Ratio was 13.43%and in 2017 was
the best performance and it was 16.17%. So this organization should give more emphasize on
equity capital than debt capital.

42
Price-Earnings Ratio:

A stock‟s market value is determined by its expected future cash flows. A comparison of a
company‟s EPS and its market value per share reveals information about market expectations.

Formula: PE ratio= Price per share ÷ Earning per share.

Analysis:

In FSIBL2016 PE Ratio was 5.93and in 2017 was the best performance and it was 12.33. This
high PE ratio can prove to be a good investment if its earnings continue to increase beyond
current expectations.

43
Capital Adequacy Ratio (CAR):

Formula:
Tier One Capital + Tier Two Capital X 100
Risk Weighted Assets

Graphical Presentation:

CAPITAL ADEQUACY RATIO

[VALUE]%
13.50 [VALUE]%
13.00
[VALUE]%
12.50 [VALUE]%
[VALUE]%
12.00
11.50
11.00
10.50
2013 2014 2015 2016 2017
2013 2014 2015 2016 2017

Figure: Capital Adequacy Ratio

44
Total Paid- up Capital:

Profit after Tax:

45
46
Chapter-Four:
Findings, Recommendations and Conclusion

47
4.1 Findings:

Findings regarding various aspects of financial statement analysis of First Security Islami Bank
Limited are presented below:
   Current Ratio of FSIBL in 1.03:1 (2017) was lower than 2016, 2015, 2014.

 Operating Profit percentage against working Funds was 40.16% 2016 which was gradually
 increased to 43.53% in 2017, so the growth seems to be positive. 

Earnings per Share in Tk.1.97 (2017) was lower than 2016, 2015 and 2014.
 Return on Asset ratio in 1.40% (2017) was lower than 2016, 2015 and 2014. 


 In 2016,PE Ratio of FSIBL was 5.93 and in 2017 was the best performance and it was
 12.33. 

Capital Adequacy Ratio in 2017 (13.33%) was higher than 2016, 2015 and 2014.
 Return on Equity in 2017 was higher (15.96%) than 2016 (12.74%) and 2014 (9.14%). 



In 2017 (16.15) Debt Equity Ratio of FSIBL was High. But In 2013 it was the worst performance
which is (9.19).

48
4.2 Recommendations:
FSIBL has been achieving success for almost thirty one years, but competition is being
increased simultaneously in banking sector of our economy. Lots of banks have been
established and they are expanded with the passage of time. To survive as a top banking
organization FSIBL has to do lots of things, some of those are given below:


 FSIBL should increase current asset and decrease current liabilities for smoothly operate
their business.
 
 FSIBL should take necessary steps to increase their Net Income.

In 2014 First Security Islami Bank Ltd Debt Equity Ratio was 13.43% and in 2017 was
 the best performance and it was 16.17%. So this organization should give more

 emphasize on equity capital than debt capital.
 
 FSIBL should decrease long term liability.

Bank should make proper and exhaustive documentation before disbursement and to
 ensure proper supervision, monitoring and follow up of each credit.


 The Bank should provide trainingto the employees so that they can achieve more
expertise in Credit Management.
 
 It should follow the guidelines provided by Bangladesh Bank.

The bank should speed up its loan processing time, to ensure better services for its clients.
The branch manager should be given more authority to sanction loan for reducing loan
 
processing time.

The terms and conditions regarding credit should be moderate for the clients. Also, the bank
should arrange seminars to clarify the terms and conditions of all service to its clients.



To maintain a good portfolio of Financial Statement, the bank should diversify its loan 

services. Lending for agriculture and medium enterprise purpose should be increased. 

  

For increasing the market share the bank should increase its consumer loan facilities.

49



The level of lending in corporate (large) enterprise financing should be increased by
 the bank to increase potentiality of more revenue.

Skilled manpower should be employed to ensure professionalism for performing

 financial activities more efficiently.


For reducing loan loss and maximizing revenue the supervision and

 monitoring activities should be performed effectively and efficiently.


The introduction of specific credit recovery unit can be a unique tool to realize credit

 from the borrowers.


Investment sales and marketing wing should be introduced to attract and retain a
large number of clients.

50
4.3 Conclusion:
First Security Islami Bank Limited is a leading commercial bank in our country for its
goodwill, huge number of branch, interactive corporate culture and team work among
employees. The Mohakhali Branch of FSIBL offers various types of loans and advances to
customers according to Investment banking rules and regulations of our country. The main
source of income of the Bank is it‟s sanctioned to various parties. The focus of the bank lies
on its large clientele base and their expectation from the bank.

The performance of the Branch is satisfactory but not enough to be a top banking company.
From the Branch position as on recent year ended, it can say that more emphasize is given to
finance for the trade and commerce sector but consumer loan, corporate (large) enterprise
financing is not prioritized by the Bank. Skilled manpower and professionalism of employees
are necessary for the Bank to provide better services, increase customers and retain them.
Introduction of more facilities, SMS banking, credit sales and marketing may bring positive
result and increase profit of the Bank, which may help the Bank to hold a top position in
banking sector. Moreover, proper monitoring, supervision and recovery activities can reduce
loan loss and increase Investment realization for the bank.

FSIBL has opportunity to proliferate product line to enhance its sustainable competitive
advantage and ensure earning more profit. Business innovation and improvement and
removal of present problems may strong the Bank‟s position in banking sector and thus the
Bank will be able to reach its ultimate goal.

51
References:

a) FSIBL Annual Report (2014, 2015, 2016,2017)

b) Web site of FSIBL: www.FSIBL.com

c) FSIBL Credit Risk Management, “A Book on Credit Policy & Lending guidelines”,
Revised Edition- 2014

d) Financial Statements of FSIBL Mohakhali Branch

e) Different Office Circulars.

f) Other Web Sites:

1. http://www.investopedia.com/terms/t/termloan.asp
2. http://www.investorwords.com/7922/general_loan_and_collateral_agreement.html
3. http://www.investopedia.com/terms/o/overdraft.asp
4. http://www.cic.gc.ca/english/resources/manuals/op/op17-eng.pdf
5. http://www.thefreedictionary.com/Cash+credit
6. http://www.businessdictionary.com/definition/construction-loan.html
7. http://www.businessdictionary.com/definition/payment-against-documents.html
8. http://www.agranibank.org/lim.php
9. http://www.bracbank.com/latr.php
10. http://www.themanagementor.com/EnlightenmentorAreas/finance/FIFS/ConsumerFin.htm
11. http://www.investopedia.com/terms/h/hire-purchase.asp
12. http://www.investopedia.com/terms/c/currentratio.asp
13. http://www.investopedia.com/articles/stocks/07/bankfinancials.asp
14. http://www.investopedia.com/terms/r/returnonequity.asp
15. http://www.fsiblbd.com/
16. http://wiki.islamicfinance.de/index.php/First_Security_Islami_Bank_Limited
17. http://www.investopedia.com/terms/r/returnonassets.asp
18. http://en.wikipedia.org/wiki/Return_on_assets
19. http://www.investopedia.com/terms/r/returnonequity.asp
20. http://en.wikipedia.org/wiki/Barbell_strategy
21. http://archive.thedailystar.net/newDesign/news-details.php?nid=174912
22. https://www.bis.org/publ/bcbs270.pdf
23. http://www.investopedia.com/terms/t/tier-1-capital-ratio.asp
24. http://www.investopedia.com/terms/t/tier-1-capital-ratio.asp
25. http://en.wikipedia.org/wiki/Capital_requirement
26. http://www.investopedia.com/terms/c/capitaladequacyratio.asp
27. http://www.investopedia.com/terms/d/demanddeposit.asp

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Appendix

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