Financial Performance Analysis of EXIM Bank Limited: A study on Chagolnaiya Branch, Feni

Abstract

EXIM Bank Limited, a third generation (A Category) private commercial bank has been able to build up significant corporate image in the banking sector due to sincere service and discipline of the employees of the bank towards gaining confidence of their customers. Financial performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. This term is also used as a general measure of a firm's overall financial health over a given period of time, and can be used to compare similar firms across the same industry or to compare industries or sectors in aggregation. Financial performance analysis is the process of identifying the financial strengths and weaknesses of the firm by properly establishing the relationship between the items of balance sheet and profit and loss account. It also helps in short-term and long term forecasting and growth can be identified with the help of financial performance analysis. The dictionary meaning of ‘analysis’ is to resolve or separate a thing in to its element or components parts for tracing their relation to the things as whole and to each other. The analysis of financial statement is a process of evaluating the relationship between the component parts of financial statement to obtain a better understanding of the firm’s position and performance. This analysis can be undertaken by management of the firm or by parties outside the namely, owners, creditors, investor. EXIM Bank will be unique organization in Bangladesh. It will be a knowledge-based organization where the EXIM Bank professionals will learn continuously from their customers and colleagues worldwide to add value. They will work as a team, stretch themselves, innovate and break barriers to serve customers and create customer loyalty through a value chain of responsive and professional service delivery. EXIM Bank Ltd. will serve its customers with respect and will work very hard to inspire a strong customer service culture throughout the bank. It will treat its employees with dignity and will build a company of highly qualified professionals who have integrity and believe in the Bank’s vision and who are committed to its success. L/C (Letter of Credit) is a very important issue of foreign exchange management because without L/C import and export cannot be possible. Importer and Exporter do not know each other. For this reason settlement of payment cannot be possible without the arrangement of Bank particularly in foreign trade. Therefore import/Export also cannot be possible if no L/C can be made through Bank. So L/C is a very important issue in foreign trade. The firm’s Earning per share (EPS) are generally of interest to present or prospective stockholders and management. The Earning per share represent the number of Taka earned on behalf of each outstanding share of common stock. Although excellence in Banking is the Moto of EXIM Bank Limited meeting the demand of the discerning customer is not the sole objective of the Bank. Customer relation should be increased to give appropriate service to them. And treat them as an asset of the company. Despite of these problems EXIM Bank Limited trying to improve their condition and taking some necessary measure to improve its condition. In the first report: Introduction, Background of the Report, Significance of the Report, object of the report, and limitation of report. Second report, About EXIM Bank Ltd, Vision, mission, objective, Management Structure of EXIM Bank Ltd, Products and Services of EXIM Bank ltd. Third report, Financial performance Analysis, Income Statement and Balance Sheet. Four report, Findings & Analysis. Five report conclusion & recommendation.