An enquiry into the financial feasibility of Janata Bank Limited, Mohammadpur corporate branch

Abstract

Internship is an integral part of BBA program. The objective of this program is to expose the students to organizational work environment. I got an opportunity to go through such a program. I was assigned to work as an intern in Janata Bank Limited- Mohammadpur Corporate Branch. The report is on “An enquiry into the financial feasibility of Janata Bank Limited, Mohammadpur Corporate Office”. The 1st part of this report is concerned with my overall experience with this branch. The 2nd part stands for the analysis. My focus was to answer how the branch is generating as well as increasing profit. Being a bank, it is supposed to do so by concentrating on banking activities. Non-banking activities are not considered to be avoided but the bank should not pay more attention to it than its core banking activities. The data represents year 2012, 2013 and 2014. Initially in 2012, total income consisted of more portion generated by banking activities. It was 53%. After that, the total income has been made more from profit generated by non-banking activities. In my analysis part, I have taken the weighted average interest receivables on loans and weighted average interest payables on deposits. It is evident that, this branch takes on more deposits than it gives loans. For example, in the last year, total deposits taken were Tk.235.21.66, 971 and total loans made were only Tk. 61, 82, 09,510. However, the interest spreads were positive. Interests paid on deposits hold the largest portion of expenses. In my analysis, Midterm loans hold the highest portion for interest receivables (58%-92%). Similarly, Weighted Average Interest payables for Midterm deposits are the largest. Midterm deposits have greater weights every year. After all the analysis, it can be said that, this branch is profitable but since 2012, it has been increasing it’s profit through non banking activities. It has been more focused on the wholesale funding. The reasons behind such attempt could be lacking of creditworthy client, interest in easy money making without default risk etc.