Presentation of mba finance by mustansar azim

Mustansar AzimMustansar Azim mc110202847 mc110202847 The Master’s of business The Master’s of business

administration (Finance)administration (Finance)

Internship report ofInternship report of

The Bank of Punjab The Bank of Punjab

Brief Introduction of the Brief Introduction of the OrganizationOrganization

established in 16 November, 1989 established in 16 November, 1989 was given the status of retail bank in 1994. was given the status of retail bank in 1994. The BOP was founded by Tajammul Hussain The BOP was founded by Tajammul Hussain functions as a scheduled commercial bank.functions as a scheduled commercial bank. The GOP is a majority shareholder of the BOP.The GOP is a majority shareholder of the BOP. network of 334 branchesnetwork of 334 branches It is the 7th largest commercial bank of Pakistan. It is the 7th largest commercial bank of Pakistan. It provides a wide range of banking products and services It provides a wide range of banking products and services

including deposits, trade, industry and agriculture.including deposits, trade, industry and agriculture. First Punjab Modarba (FPM) a wholly owned subsidiary of First Punjab Modarba (FPM) a wholly owned subsidiary of

bank was established in 1992 and is being managed by bank was established in 1992 and is being managed by Punjab Modarba services (Pvt) Ltd. Punjab Modarba services (Pvt) Ltd.

During the year 2013, setting up new Islamic Banking During the year 2013, setting up new Islamic Banking Operations. Operations.

Business volumeBusiness volume

2013 Rs. mn

2012 Rs mn. 2011 Rs mn

Balance sheet

Total assets 352,698 332,111 280,998

Advances 157,286 149,605 127,130

Investments 123,956 129,519 92,581

Equity 12,577 10,733 10,135

Reserves 905 1,638 638

Deposits 306,561 266,056 237,897

Borrowings 22,802 44,684 24,964

Operating ResultsOperating Results 2013 2013 2012 2012 20112011

Interest earnedInterest earned 24,228 24,228 24,666 24,666 20,685 20,685

Interest expenseInterest expense 20,209 20,209 22,523 22,523 21,073 21,073

Net markup incomeNet markup income 4,0194,019 2,1432,143 (388)(388)

Non-markup base Non-markup base incomeincome

3,5963,596 3,1913,191 1,9901,990

Non-markup base Non-markup base expenseexpense

5,280 5,280 4,5584,558 3,711 3,711

Provision against Provision against NPLsNPLs

(673)(673) (965)(965) (3,164)(3,164)

Net profit/loss Net profit/loss before taxbefore tax

3,0013,001 1,404 1,404 523 523

Net profit/loss after Net profit/loss after taxtax

1,938 1,938 1,634 1,634 348 348

Other InformationOther Information

EPS EPS

2.36 2.36

2.63 2.63

0.66 0.66

No. of No. of branches branches

334334

306306

284284

Staff strength Staff strength

6,0926,092

5,4915,491

4,9994,999

Breakup Breakup value value per/share per/share

5.585.58

4.824.82

4.554.55

CompetitorsCompetitors

Muslim Commercial BankMuslim Commercial Bank Allied Bank LimitedAllied Bank Limited United Bank LimitedUnited Bank Limited Habib Bank LimitedHabib Bank Limited Faissal Bank LimitedFaissal Bank Limited Bank AlfalahBank Alfalah Askari BankAskari Bank Summit BankSummit Bank

Training ProgramTraining Program

I have got understanding in almost all I have got understanding in almost all departments during my internshipdepartments during my internship

Introduction to general bankingIntroduction to general banking Account opening departmentAccount opening department Remittances departmentRemittances department Clearance departmentClearance department Cash departmentCash department Deposit & Marketing departmentDeposit & Marketing department

Account opening departmentAccount opening department

I had worked in this department for one weekI had worked in this department for one week I learned that how to open an accountI learned that how to open an account Filling the account opening formFilling the account opening form Specimen signature card (SSC)Specimen signature card (SSC) NADRA verificationNADRA verification Letter of thanksLetter of thanks Issuance of cheque bookIssuance of cheque book Issuance of ATM cardIssuance of ATM card

Remittances departmentRemittances department

I had worked in this department for one weekI had worked in this department for one week Demand draft (DD) is a written order to pay certain amount Demand draft (DD) is a written order to pay certain amount

by the bank branch to other bank branchby the bank branch to other bank branch Pay order are issued for local or with in city for the transfer Pay order are issued for local or with in city for the transfer

of money of money Telegraphic Transfer (TT) is instant transfer of funds from Telegraphic Transfer (TT) is instant transfer of funds from

one place to other place through telecommunication. one place to other place through telecommunication. Mail Transfer (MT) is the transfer of funds from one place to Mail Transfer (MT) is the transfer of funds from one place to

other place in the shape of document through mail. other place in the shape of document through mail.

Clearing departmentClearing department

I had worked in this department for one weekI had worked in this department for one week observed how clearing of cheques takes place observed how clearing of cheques takes place National institutional facilitation technology (NIFT) National institutional facilitation technology (NIFT) Inward clearing Inward clearing Outward clearingOutward clearing

Cash departmentCash department

I had worked in this department for one weekI had worked in this department for one week Cash receipt Cash receipt Cash paymentCash payment Token Token Payment on checquePayment on checque Sorting the cashSorting the cash

Deposit & MarketingDeposit & Marketing

I had worked in this department for one weekI had worked in this department for one week Visited a customer for depositVisited a customer for deposit Learned marketing techniques Learned marketing techniques

Learning ExperiencesLearning Experiences

Knowledge GainedKnowledge Gained

Internship was the practical and real experience of all the Internship was the practical and real experience of all the courses courses

How money and financial system works collectively in an How money and financial system works collectively in an economy economy

Financial statements analysisFinancial statements analysis

Skills LearnedSkills Learned

Communication skillsCommunication skills Managerial skillsManagerial skills Computer skillsComputer skills

analyze and interpretation of the annual reports for different analyze and interpretation of the annual reports for different

users for better decision makingusers for better decision making Leadership qualitiesLeadership qualities

Attitudes Observed/Values GainedAttitudes Observed/Values Gained

• Hardworking • IntegrityIntegrity• honesty honesty • Helping attitudeHelping attitude

Most Challenging Task PerformedMost Challenging Task Performed

I think internship program was itself a challenging task I think internship program was itself a challenging task to convince the customers for opening an account in this to convince the customers for opening an account in this

bank who has already account in another bankbank who has already account in another bank To collect the depositTo collect the deposit

Ratio AnalysisRatio Analysis

Ratio Ratio AnalyAnalysissis

The Bank of PunjabThe Bank of Punjab

Net Profit / Total Revenue * 100Net Profit / Total Revenue * 100

Year 2011Year 2011 Year 2012Year 2012 Year 2013Year 2013

Net Net Profit Profit MarginMargin

347,973 / 347,973 / 20,685,01120,685,011 *100*100 = 1.68 %= 1.68 %

1,633,841 / 1,633,841 / 24,666,024 24,666,024

*100 *100 = 6.62 %= 6.62 %

1,938,007 / 1,938,007 / 24,227,721*100 24,227,721*100

= 7.80 %= 7.80 %

0.00%

2.00%

4.00%

6.00%

8.00%

2011

2012

2013

Increasing trend



Net Markup Margin / Interest EarnedNet Markup Margin / Interest Earned


Gross Gross SpreaSpread d RatioRatio

(388,260) / (388,260) / 20,685,01120,685,011*100*100= -1.88 %= -1.88 %

2,143,106 / 2,143,106 / 24,666,02424,666,024

*100 *100 = 8.69 %= 8.69 %

4,019,034 / 4,019,034 / 24,227,72124,227,721

*100 *100 = 16.59 %= 16.59 %

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

2011

2012

2013

Increasing trend

Working of net markup marginWorking of net markup margin

Net Markup Margin = Markup/ Interest Earned -Net Markup Margin = Markup/ Interest Earned - Markup/ Interest Markup/ Interest ExpenseExpense

2011= 2011= 20685011 – 21073271 = (388260)20685011 – 21073271 = (388260) 2012= 2012= 24666024 – 22522918 = 214310624666024 – 22522918 = 2143106 2013= 2013= 24227721 – 20208687 = 401903424227721 – 20208687 = 4019034

Interest Earned = Interest Earned = 2011= 2011= 2068501120685011 2012= 2012= 2466602424666024 2013= 2013= 224227721224227721



Interest earned / Interest ExpenseInterest earned / Interest Expense


SpreaSpread d RatioRatio

20,685,011 / 20,685,011 / 21,073,27121,073,271*100*100= 0.98 times= 0.98 times

24,666,024 / 24,666,024 / 22,522,91822,522,918

*100 *100 = 1.09 times= 1.09 times

24,227,721 / 24,227,721 / 20,208,687 20,208,687

*100 *100 = 1.19 times= 1.19 times

0

0.2

0.4

0.6

0.8

1

1.2

2011

2012

2013

Increasing Trend



Non Interest Income/ Total Interest IncomeNon Interest Income/ Total Interest Income


Non Non intereinterest to st to total total incomincomee

1,989,708 / 1,989,708 / 22,674,71922,674,719*100*100= 8.78 %= 8.78 %

3,190,745 / 3,190,745 / 27,856,76927,856,769

*100 *100 = 11.45 %= 11.45 %

3,596,226 / 3,596,226 / 27,823,947 27,823,947

*100 *100 = 12.92 %= 12.92 %

0

2

4

6

8

10

12

14

2011

2012

2013

Increasing Trend

Working of total interest incomeWorking of total interest income

Total income = total non interest income + total interest Total income = total non interest income + total interest incomeincome

2011 = 1989708 + 20685011 = 226747192011 = 1989708 + 20685011 = 22674719 2012 = 3190745 + 24666024 = 278567692012 = 3190745 + 24666024 = 27856769 2013 = 3596226 + 24227721 = 278239472013 = 3596226 + 24227721 = 27823947

Total non interest incomeTotal non interest income 2011 = 19897082011 = 1989708 2012 = 31907452012 = 3190745 2013 = 35962262013 = 3596226



Net Income / Average Total Assets *100Net Income / Average Total Assets *100


ReturReturn on n on assetsassets

347,973 / 347,973 / 255,093,902255,093,902*100*100= 0.14 %= 0.14 %

1,633,841 / 1,633,841 / 306,554,292.5 306,554,292.5

*100 *100 = 0.53 %= 0.53 %

1,938,007 / 1,938,007 / 342,404,599.5 342,404,599.5

*100 *100 = 0.57 %= 0.57 %

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

2011

2012

2013

Increasing Trend

Working of average total assetsWorking of average total assets

Average total assets = Opening assets + closing assets / 2Average total assets = Opening assets + closing assets / 2

Average assets for FY 2011: 229,190,273 + 280,997,531 / 2Average assets for FY 2011: 229,190,273 + 280,997,531 / 2 = = 255,093,902255,093,902 Average assets for FY 2012: 280,997,531 + 332,111,054 / 2Average assets for FY 2012: 280,997,531 + 332,111,054 / 2 = = 306,554,292.5306,554,292.5

Average assets for FY 2013: 332,111,054 + 352,698,145Average assets for FY 2013: 332,111,054 + 352,698,145 = 342,404,599.5= 342,404,599.5



Net Profit Margin * Total Asset TurnoverNet Profit Margin * Total Asset Turnover


Du Du Pont Pont ReturReturn on n on assetsassets

1.68 % * 0.081.68 % * 0.08

= 0.14 % = 0.14 %

6.62% * 0.086.62% * 0.08

= 0.53 %= 0.53 %

7.80 % * 0.07 7.80 % * 0.07

=0.55 %=0.55 %

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

2011

2012

2013

Increasing Trend

Working of total asset turnoverWorking of total asset turnover

Net Sales / Average total AssetsNet Sales / Average total Assets

2011 = 20,685,011 / 255,093,902 = 0.08 times2011 = 20,685,011 / 255,093,902 = 0.08 times 2012 = 24,666,024 / 306.554, 292.5 = 0.08 times2012 = 24,666,024 / 306.554, 292.5 = 0.08 times 2013 = 24,227,721 / 342,404,599.5 = 0.07 times2013 = 24,227,721 / 342,404,599.5 = 0.07 times

Net Profit marginNet Profit margin 2011 = 1.68 %2011 = 1.68 % 2012 = 6.62 %2012 = 6.62 % 2013 = 7.80% 2013 = 7.80%



Net Income / Total EquityNet Income / Total Equity


ReturReturn on n on EquityEquity

347,973 / 347,973 / (6,864,911)(6,864,911)*100*100= -5.07 % = -5.07 %

1,633,841 / 1,633,841 / (6,266,957)(6,266,957)

*100 *100 = -26.07 %= -26.07 %

1,938,007 / 1,938,007 / 576748 *100 576748 *100

= 336.13 %= 336.13 %

-50.00%

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

300.00%

350.00%

2011

2012

2013

Working of total equityWorking of total equity

Total equity = share capital + reserves + UN appropriated Total equity = share capital + reserves + UN appropriated profit / loss profit / loss

2011 = 2011 = 5287974 + 1914956 + (14067841) 5287974 + 1914956 + (14067841) = (= (6864911)6864911) 2012 = 2012 = 5287974 + 1187433 + (12742364) 5287974 + 1187433 + (12742364) = (= (6266957)6266957) 20132013 = 10551132 + (263158) + 1539659 + (11250885) = 10551132 + (263158) + 1539659 + (11250885) = = 576748576748



Total Debt / Total AssetsTotal Debt / Total Assets


Debt Debt RatioRatio

270,244,941/ 270,244,941/ 280,997,531280,997,531*100*100= 96.16 %= 96.16 %

319,739,551/ 319,739,551/ 332,111,054332,111,054

*100 *100 = 96.27 %= 96.27 %

339,216,847/ 339,216,847/ 352,698,145 352,698,145

*100 *100 = 96.17 %= 96.17 %

96.10%

96.12%

96.14%

96.16%

96.18%

96.20%

96.22%

96.24%

96.26%

96.28%

2011

2012

2013

Working of total debtWorking of total debt

Total Debt = bill payable + borrowing from financial Total Debt = bill payable + borrowing from financial institutions + deposits and other accounts + liabilities against institutions + deposits and other accounts + liabilities against finance lease + other liabilitiesfinance lease + other liabilities

20112011= 850569 + 24963566 + 237896700 +7831 +6506275 = 850569 + 24963566 + 237896700 +7831 +6506275 ==270224941270224941

20122012= 1500709 + 44683826 + 266055781 + 3601 +7495634 = 1500709 + 44683826 + 266055781 + 3601 +7495634 ==319739551319739551 20132013= 1506335 + 22802482 + 306560767 + 2386 +8344877 = 1506335 + 22802482 + 306560767 + 2386 +8344877

= =339216847339216847

Working of total assetsWorking of total assets

Total Assets = cash and balances with treasury banks + Total Assets = cash and balances with treasury banks + balances with other banks + lending to financial institutions balances with other banks + lending to financial institutions + Investments + Advances + operating fixed assets + other + Investments + Advances + operating fixed assets + other assetsassets

20112011 = 16698333 + 3607107 + 7447375 + 92581306 + = 16698333 + 3607107 + 7447375 + 92581306 + 127129501 + 3597483 + 13886769 +16049657 127129501 + 3597483 + 13886769 +16049657

= = 280997531280997531 20122012= 17298251 + 3101170 + 1562946 + 129518999 + = 17298251 + 3101170 + 1562946 + 129518999 +

149605002 + 3473491 + 13070614 +14480581= 149605002 + 3473491 + 13070614 +14480581= 332111054332111054

20132013 = 23820864 + 4265296 + 11407448 + 123956143 + = 23820864 + 4265296 + 11407448 + 123956143 + 157285598 + 3514801 + 12627352 + 15820643 157285598 + 3514801 + 12627352 + 15820643

==352698145352698145



Total Debt / Total Equity * 100Total Debt / Total Equity * 100


Debt/Debt/Equity Equity RatioRatio

270,244,941/ 270,244,941/ (6,864,911)(6,864,911)*100*100= -39.4 times= -39.4 times

319,739,551 / 319,739,551 / (6,266,957)(6,266,957)

*100 *100 = -51.09 times= -51.09 times

339,216,847 / 339,216,847 / 576,748 *100576,748 *100

= 588.15 times = 588.15 times

-100

0

100

200

300

400

500

600

2011

2012

2013

Working of total debtWorking of total debt

Total Debt = bill payable + borrowing from financial Total Debt = bill payable + borrowing from financial institutions + deposits and other accounts + liabilities against institutions + deposits and other accounts + liabilities against finance lease + other liabilitiesfinance lease + other liabilities

20112011= 850569 + 24963566 + 237896700 +7831 +6506275 = 850569 + 24963566 + 237896700 +7831 +6506275 ==270224941270224941

20122012= 1500709 + 44683826 + 266055781 + 3601 +7495634 = 1500709 + 44683826 + 266055781 + 3601 +7495634

==319739551319739551 20132013= 1506335 + 22802482 + 306560767 + 2386 +8344877 = 1506335 + 22802482 + 306560767 + 2386 +8344877

= =339216847339216847

Working of total equityWorking of total equity

Total equity = share capital + reserves + UN appropriated Total equity = share capital + reserves + UN appropriated profit / loss profit / loss

2011 = 2011 = 5287974 + 1914956 + (14067841) 5287974 + 1914956 + (14067841) = (= (6864911)6864911) 2012 = 2012 = 5287974 + 1187433 + (12742364) 5287974 + 1187433 + (12742364) = (= (6266957)6266957) 20132013 = 10551132 + (263158) + 1539659 + (11250885) = 10551132 + (263158) + 1539659 + (11250885) = = 576748576748



EBIT / Interest ExpenseEBIT / Interest Expense


Times Times intereinterest st earneearned d RatioRatio

21,596,018 / 21,596,018 / 21,073,27121,073,271*100*100

= 1.02 times= 1.02 times

23,926,810 / 23,926,810 / 22,522,91822,522,918

*100*100


23,209,969 / 23,209,969 / 20,208,687 20,208,687

*100*100


0.95

1

1.05

1.1

1.15

2011

2012

2013

Increasing Trend

Working of EBITWorking of EBIT

EBIT = Profit before Tax + Interest expenseEBIT = Profit before Tax + Interest expense

2011 = 522747 + 21073271 = 215960182011 = 522747 + 21073271 = 21596018 2012 = 1403892 + 22522918 = 239268102012 = 1403892 + 22522918 = 23926810 2013 = 3001282 + 20208687 = 232099692013 = 3001282 + 20208687 = 23209969



Net Advances / Total DepositsNet Advances / Total Deposits


AdvanAdvance/ ce/ deposdeposit it RatioRatio

127,129,501/ 127,129,501/ 237,896,700237,896,700


149,605,002 / 149,605,002 / 266,055,781266,055,781


157,285,598 / 157,285,598 / 306,560,767 306,560,767


0.48

0.49

0.5

0.51

0.52

0.53

0.54

0.55

0.56

2011

2012

2013



CF from operation / Current LiabilitiesCF from operation / Current Liabilities


OperaOperating ting cash cash flow flow RatioRatio

32,984,625 / 32,984,625 / 203,709,219203,709,219


20,546,543 / 20,546,543 / 241,238,175241,238,175


3,731,609 / 3,731,609 / 247,832,961 247,832,961


0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

2011

2012

2013

Decreasing Trend

Working of cash flow from operationWorking of cash flow from operation

Cash flow from operation (taken from cash flow statement): Cash flow from operation (taken from cash flow statement):

2011 = 329846252011 = 32984625 2012= 205465432012= 20546543 2013= 37316092013= 3731609

Working of current liabilitiesWorking of current liabilities

2011 2012 2013

Bill payable 850569 1500709 1,506,335

Borrowings 24055899 43968561 220,664,408

Deposits 172757623 190565772 219,222,506

Portion of liabilities against assets finance lease

4026 1084 1,270

Other liabilities

6041102 5302049 5,036,442

Total 203,709,219 241,238,175 247,832,961

Details of C/L forDetails of C/L for

FY2011FY2011Up to 1 month

1-3 months

3-6months

6 months to 1 year

Bills payable 850,569

850,569

Borrowings 19,456,240

2,879,451

1,652,900 67,308 24,055,899

Deposits and other accounts

38,876,481

45,516,576

38,553,721

49,810,845 172,757,623

Liabilities against assets subject to finance lease

323 660 1,022 2,021

4,026

Deferred tax liability -

-

- - 0

Other liabilities 5,439,033

- - 602,069 6,041,102

Total current liabilities

203,709,219

Details for Details for C/L 2012C/L 2012

Up to 1 month

Over 1month to 3 months

Over 3 months to 6 months

Over 6 months to 1 year

Bills payable 1,500,709 1,500,709

Borrowings 38,017,652 3,281,043 2,561,926 7,940 43,868,561


45,984,904 46,197,025 47,609,208 50,774,635 190,565,772


84 171 266 563 1084

Deferred tax liability

-

- - - 0

Other liabilities

4,779,158

25,514

- 479,377 5,302,049


241,238,175

Details of Details of C/L 2013C/L 2013

Up to 1 month

Over 1month to 3 months

Over 3 months to 6 months

Over 6 months to 1 year

Bills payable 1,506,335 1,506,335

Borrowings 14,833,228 4,979,067 2,243,417 10,696 22,066,408


62,249,483 58,503,528 46,700,450 51,769,045 219,222,506


98 201 311 660 1270

Deferred tax liability

-

- - - 0

Other liabilities

4,529,358 2,333 2,852 501,899 5,036,440


247,832,961

Dividend per share Dividend per share

In last three years the bank of Punjab had not paid any dividend to its shareholders



Net Income / Total Share OutstandingNet Income / Total Share Outstanding


EarninEarnings per gs per shareshare

347,973 / 347,973 / 528,797528,797

= Rs. 0.66= Rs. 0.66

1,633,841 / 1,633,841 / 528,797528,797

= Rs. 3.09= Rs. 3.09

1,938,007 / 1,938,007 / 10,55,113 10,55,113

=Rs. 1.84 =Rs. 1.84

0

0.5

1

1.5

2

2.5

3

3.5

2011

2012

2013

Mixed Trend



Current market price per share / EPSCurrent market price per share / EPS


Price / Price / EarninEarnings gs shareshare

5.41 / 0.665.41 / 0.66


10.7 / 3.0610.7 / 3.06


11.02 / 1.84 11.02 / 1.84


0

1

2

3

4

5

6

7

8

9

2011

2012

2013

Mixed Trend

ConclusionConclusion

During internship, I concluded following problems During internship, I concluded following problems related to my training and organization internal related to my training and organization internal structure.structure.

Old technology and methods are used in operations Old technology and methods are used in operations and work environment.and work environment.

Customers are ignoredCustomers are ignored No proper human resource departmentNo proper human resource department Communication between junior and high rank staff is Communication between junior and high rank staff is

poorpoor Staff is lethargic and lack of motivationStaff is lethargic and lack of motivation Trainees and interns are not properly guided Trainees and interns are not properly guided

The net profit margin of the bank of Punjab is growing and The net profit margin of the bank of Punjab is growing and increasing every year which is good indicator for increasing every year which is good indicator for organization.organization.

Gross spread is good and improving every year because Gross spread is good and improving every year because management controlled its interest expenses.management controlled its interest expenses.

Spread ratio is also good and improving every year because Spread ratio is also good and improving every year because it meets its interest expenses.it meets its interest expenses.

Non interest income is increasing every year and non interest Non interest income is increasing every year and non interest income to total income is increasing and good for bank.income to total income is increasing and good for bank.

Return on assets is low and increasing.Return on assets is low and increasing. Du pont on return on asset is also very low increasing trend.Du pont on return on asset is also very low increasing trend.

Times interest earned is good and increasing.Times interest earned is good and increasing. Return on equity is good and has increasing trend from Return on equity is good and has increasing trend from

previous yearsprevious years Debt ratio is very high for all yearsDebt ratio is very high for all years Debt to equity ratio is extremely high.Debt to equity ratio is extremely high. Advance to deposit ratio is not good and very lowAdvance to deposit ratio is not good and very low Operating cash flow ratio is very lowOperating cash flow ratio is very low Dividend is not paid from previous three years which is not Dividend is not paid from previous three years which is not

good and attractive for investors.good and attractive for investors. Earnings per share is goodEarnings per share is good Price earnings ratio is good and increasingPrice earnings ratio is good and increasing

RecommendationsRecommendations

The bank of Punjab can increase its profitability to decrease The bank of Punjab can increase its profitability to decrease the non interest expenses.the non interest expenses.

The BOP can increase its spread ratios to decrease the The BOP can increase its spread ratios to decrease the interest expense.interest expense.

The management should utilize its assts to increase and The management should utilize its assts to increase and improve return on assets and the du pond on return on assets.improve return on assets and the du pond on return on assets.

The BOP should decrease its debt ratio as well as debt equity The BOP should decrease its debt ratio as well as debt equity ratio. High debt ratio and high debt equity ratio leads to high ratio. High debt ratio and high debt equity ratio leads to high leverage which could cause bankruptcy so BOP should leverage which could cause bankruptcy so BOP should decrease its debt to increase the equity.decrease its debt to increase the equity.

BOP should increase its advances to earn more profit from BOP should increase its advances to earn more profit from its deposits for the improvement of profitability. its deposits for the improvement of profitability.

The BOP should improve its operating cash flow with The BOP should improve its operating cash flow with improve its operation andimprove its operation and

improve its liquidity to reduce its short term borrowings.improve its liquidity to reduce its short term borrowings.

Thank YouThank You

Presentation of mba finance by mustansar azim

Economy & Finance

Transcript of Presentation of mba finance by mustansar azim