An analysis of automation investment and strategic financial outcomes in the banking sector: a case study of Dhaka Bank

Abstract

This document is ready as a partial requirement for the finishing touch of my undergraduate degree in Finance. It is based on my internship experience in the Operations Division of Dhaka Bank PLC. The report is divided into three major chapters: My internship journey, Organizational insights, and a financial analysis undertaking focusing at the performance and automation effect at Dhaka Bank. The first chapter highlights my 3-month internship at Dhaka Bank PLC, detailing the duties I undertook, the demanding situations I confronted, and the tips I proposed. It offers a comprehensive review of the various operational tasks assigned to me and how those contributed to my learning and development. Chapter two presents a detailed overview of the organizational structure of Dhaka Bank, highlighting the performance of its major departments – Human Resources, Marketing, Finance and Accounting, and Management. Initially, camels rating is used to assess the financial health and stability of the bank. This is followed by a thorough analysis of the financial performance and accounting practices followed by the bank over the past 5 years. Various ratios are used. The activities of each department are critically examined to understand how they contribute to the overall operations and strategic goals of the organization. A 3-year 3-step DuPont analysis is conducted, using 2 components, one being ROA and the other Equity Multiplier. It also highlights the strategic initiatives that Dhaka Bank is taking to strengthen its competitive position in the banking sector. Finally, the strengths and weaknesses of the bank are discussed. The last chapter of the report highlights the features of a financial assessment comparing the overall performance of five major divisions of Dhaka Bank: Conventional Banking, Islamic Banking, Offshore Banking, Dhaka Bank Investment and Dhaka Bank Securities. First, the Relative Importance Index was used to determine which division of the bank is the most important or earning the highest net profit. Using the records of divisional profit declaration, four types of financial tools were used: NPM, OPM, ROA, ROE. Later, comparisons were made between the divisions. Then, the automation of previous revenue and operating cost forecast for the following years was done and the impact of changes in revenue and operating cost due to automation was used to predict future revenue and cost. Three scenarios were analyzed using the scenario manager through automation: low, moderate, high. Based on this analysis, a clear and quick proposal of strategic tips has been made to help optimize the bank's operations. Overall, this document bridges my educational foundation with actual-global financial practices and serves as a great milestone in my professional journey.