Performance Evaluation of Dhaka Bank Ltd by using Aggregate ROE Model

Abstract

This project paper is prepared as requirement of BBA program of United International University. This project provides an overall performance evaluation of Dhaka Bank Ltd. Along with the measurement of risk factors and financial stability of Dhaka Bank Ltd based on five years financial data.

We know that banking system occupies an important place in a nation economy because of its intermediary role. It ensures allocation and relocation of resources and keeps up the momentum of economic activities. A banking institution is essential for the modern society. I plays an important role in the economic development of a country. In a development country like Bangladesh, the banking system as a whole has a vital role to play in the progress of the economic development.

In the modern economy, consumer banking is the key growth area. While the growth in customer numbers in corporate banking segment is becoming close, new customers in consumers banking is growing every day. Consumer banking arena in Bangladesh is relatively new.

I divided my report into several parts. First In the introduction part, it has include company overview and companies different aspects and history as well as company’s mission and vision of Dhaka Bank Ltd. As we know that Dhaka bank limited is one of the primary listed bank in our country. Dhaka bank started their journey as a public limited company in 1995.

Moreover, the next part is company’s performance evaluation through ROA (Return on Asset). This part is the main part of the report, which help us to know that the company is on risk or on safely position. I divided all the component of the ROA model of the bank and analyses in this report. At the last part of the report, I discuss about the risk management of Dhaka Bank Ltd. There I analyze repricing gap model, market risk, risk adjusted return on capital ratio, liquidity risk ratio, operational risk and credit risk ratio. Then I discuss about the position of the Dhaka Bank Ltd.