Financial Performance Analysis of IDLC
Islam, Md. Tauhidul
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Amongst many other well known, non-banking financial institution in Bangladesh, IDLC is one of them. IDLC Finance Ltd. was integrated as a public limited company in this country. The evaluation and the analysis of IDLC Finance Limited cover its performances as a whole. Based on the past data, the Horizontal Analysis predicts the future improvements of IDLC. The financial and operational performances of IDLC from the year 2013 to the year 2017 have been discretely shown in this report. The growth rates of the deposits have shown an increasing trend through the duration of this period. Through thorough analysis it has yield that the financial and operational expenditure of the bank shows a lower growth rate than that of the operating income over the years 2013 to 2017. Commendably and additionally performing are the ROA, ROE, EPS; which have increased the profitability of IDLC on a large scale. Any market is affected when the profitability of the bank goes down, majorly emphasizing the investors and creditors. However, the solvency ratios show that banks gradually increase the proportion of debt in comparison to its total assets and total equity in order to compensate for this matter. The risk ratios shows that IDLC has performed better during this period. It has been able to reduce the non-performing loan as a proportion, by decreasing the amount of loan per deposit ratio. The current ratio has been of an increasing trend over the period of time; simultaneously its growth rate has also been increasing. Conclusively, some problems have been identified and suggestions have been given in order for the management to overcome these issues. A conclusion on the overall performance of IDLC has been given at the end of this report.
- Finance