Financial ratio analysis of United commercial bank limited

Abstract

This internship report is based on my internship program and financial statements of 2008, 2009 and 2010 of United Commercial Bank Limited. I have done my internship program under different desks of UCBL Kawran Bazar Branch. In my internship period, I worked in General Banking, General Advance and Foreign Exchange departments. It was a great opportunity to experience and gather knowledge different types of banking operations. My faculty supervisor helped me to choose the topic- “Ratio Analysis of United Commercial Bank Limited”. In the new competitive business era, private banking sector is getting more competitive in Bangladesh. In this sector the most used financial statements are the balance sheet and profit and loss account where the balance sheet shows the financial position and profit and loss account shows the net profit or net loss of a bank. Ratio Analysis deals with these statements. Ratio analysis is the most popular trend to evaluate a bank’s performance over years or with other companies in an industry. In my report I had to study UCBL’s financial statements for the last few years then had to analyze and give significant comments regarding the changes in the financial position. Analysis and interpretation of these financial statements through ratio analysis has now become an important technique for performance appraisal because the investors, financial experts, management executives and the bankers are always rely on these ratios to make important decisions. The management team of any bank, investor and the government agencies always concern about liquidity ratios and adequacy ratios of a bank which interprets the efficiency of a bank. As a part of my B.B.A program, I have spent 12 weeks in UCBL Kawran Bazaar Branch learning the activities of general banking, general advance and foreign exchange department. I have analyzed the financial statements of UCBL to find out its ratios by using its past and current records. After preparing this report I came to know that analysis of financial statements through ratios helps to overcome the past flaws and make the future decisions and strategies. Therefore, it is very necessary for every organization whether the company’s size is to make financial statement and to analyze it by ratios.