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    A Term Paper On

    Investment Management on CSE Listed

    Company

    http://www.assignmentpoint.com/business/finance/investment-decision-cse-listed-company.htmlhttp://www.assignmentpoint.com/business/finance/investment-decision-cse-listed-company.htmlhttp://www.assignmentpoint.com/business/finance/investment-decision-cse-listed-company.htmlhttp://www.assignmentpoint.com/business/finance/investment-decision-cse-listed-company.html
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    Chapter-1 :

    Introduction

    The Chittagong Stock Exchange is the prime bourse of the country. Through

    its nonstop highly fault tolerant screen based automated trading system the

    exchange has been offering facilities for transparent and highly efficient

    provisions for secondary market activities of securities.

    Origin of the topic

    This term paper originated as an academic requirement of BBA Program.

    This is authorized and organized by the department of BBA. After

    completion of the program period a student must submit the term paper on

    the assigned topic to the Supervisor and to the department. The program is

    three months duration. I was assigned to Chittagong Stock Exchange

    Limited, to complete the program.

    Objective of the study

    Objectives of this study are as follows-

    - To present an overview of Chittagong Stock Exchange.

    -To identify the trend line of CSE and that of those securities incorporated in

    CSE.

    -To identify the strength and performance of CSE 5 Banks. .

    -To compare among CSE 5 Banks. .

    -To develop the practical knowledge by the practical orientation of Work.

    Scope of the Study

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    Scope of the study could be to understand contribution of stock exchange in

    economic development of a country. The economy of Ban in gaining in

    confidence and scope for development of capital market is gaining ground. If

    we can educate the investors regarding risk in management and adopt

    suitable legal measure to protect the investors interest, a substantial volume

    of saving of masses will flow into capital markets economic growth leads to

    increase national incomes and thus savings, which in turn are often channeled

    into the capital market.

    Limitation of the Study

    I have been provided with all necessary information at Chittagong Stock

    Exchange Ltd as my level best; but, all required information and data are not

    elaborated as a guideline of the report.. Some problems may be terms as

    limitations of my study which are given below-

    Relevant papers and documents were not available sufficiently

    In some cases , up to date information or data are not published.

    Due some, up to date information or data are not published. reason, the

    study limits only on the available published data and certain degree of

    formal and inform interview.

    Part Two: Conceptual Issues

    CHAPTER-2: concept issue

    Investment

    Generally investment means to invest money any profitable sector.

    Investment is an activity that is engaged in by who have saving.

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    In general sense, investment means the sacrifice of current dollars of future

    dollars.

    In the financial sense, Investment the commitment of a persons fund to

    derive future income in the form of interest, dividend, premiums, pension

    benefit.

    According to C.P.JONES, Investment means commitment of the fund to one

    or more assets will beheld over some future time period.

    According to Reilly &Brown An investment is the current commitment of

    dollars for a period of the time order to derive future payment that will

    compensate the investor for i)the time the fund is the commitment ii)the

    expected rate of inflation and iii)the uncertainty of the future payment.

    In the end we can say that investment is a commitment of fund made in

    the expectation of some positive rate of return over the future time period .

    Investment making process

    Investment making is the part of investment. Investing has a logical and

    making process for successful implementation. Using a defined process when

    tackling complicated tasks helps us keep our focus and improves our chances

    of success. The following illustration of the Investment Management making

    process has been simplified, however it provides a great foundation for

    starting your quest for investing knowledge.

    Investment making process the foundation in making Investment

    Management. The making processes are the trade-off between expected

    return and risk. But numerous separate must be made for organizational

    purposes. traditionally making process two step.

    Security Analysis for Investment Management

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    Security analysis involves the valuation and analysis of individual securities

    within the broad categories of financial assets. Professional analysts are

    employed by institutional investor. A security analyst must be in a position to

    understand the various financial statements, as the financial statement is an

    important source of information. This way of analyzing the security takes

    place from an investor point of view.

    Economic analysis

    A systematic approach to determining the optimum use of scarce resources,

    involving comparison of two or more alternatives in achieving a specific

    objective under the given assumptions and constraints. Economic analysis

    takes into account the opportunity costs of resources employed and to

    measure in monetary terms the private and social costs and benefits of a

    project to the community or economy.

    Company Analysis

    Company Analysis or corporate analysis, refers to actions undertaken for an

    in-depth evaluation and to gain an understanding of a particular companys.

    Investors conduct company analysis to evaluate securities, gathering

    information about the companys profile, products or services and

    profitability. It is also called fundamental analysis.

    Industry Analysis

    An industry analysis is a business function completed by business owners

    and other individuals to assess the current business environment. This

    analysis helps businesses understand various economic pieces of the

    marketplace and how these various pieces may be used to gain a competitive

    advantage. Although business owners may conduct an industry analysis

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    according to their specific needs, a few basic standards exist for conducting

    this important business function.

    Technical Analysis

    Technical analysis is a method in which the analyst never cares about the

    value of the security. They decide upon the price movement of the security

    based on the price movement of the security in the market. The main factor

    that a technical analyst studies is the supply and demand factor.

    Part Three: Database

    Chapeter-3: Database

    Source of information

    Different data and information are required to meet the goal of this report.

    Those data and information were collected from various sources, such as,

    primary and secondary which is showed below:

    Primary Sources of Data

    Personal observation.

    Face to face conversation of the officers.

    Face to face conversation of the clients.

    Working at different desks of the R&D.

    Secondary Sources of Data

    Annual term paper of Chittagong Stock Exchange

    Monthly Review of Chittagong Stock Exchange

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    Several kinds of Academic test-book.

    Different publications regarding Stock Exchange function

    Website of CSE

    Method of collection Data

    The collect data are two kind are qualitative and quantitative. Qualitative data

    are quality, mistake and good things. Quantitative data are power and usage

    etc.

    Reliability of Data

    This data are reliable because this data are source of primary and secondary

    data. All data are collect website and phsicially. And all data collect

    reliable source .So all data trust and reliable.

    Method used in the study

    We used qualitative and quantitative both data. the theory part use qualitative

    data and the math part we use quantitative data. Both data are use for this

    term paper.

    Part-4 : Finding of the Study

    Chapter-4: Economic Analysis

    Global Economy

    Now 2013 the global economy is going to start recover. This time the global

    Economic climate is much better this year than last year, but the recovery is

    fragile and timid. The International Monetary Fund forecasts 3.5% GDP

    growth for the global economy in 2013. The recovery as fragile and timid

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    because the Euro zone is prone to political crisis and slow decision-making

    processes. Some good policy decisions have been made in the various corners

    of the world, including by central banks In 2013, they have to keep the

    momentum. Europe to operational the new tools policy-makers have recently

    devised, including Europes banking union..

    Bangladesh Economy

    Now Bangladesh economic position is not good but last year economic is

    soso. The economic position bad cause political situation. But GDP of

    Bangladesh grew by 6.3% in Fiscal Year 2012. While export growth slowed

    sharply, private consumption held up well, supported by a recovery in

    remittance growth and healthy credit flows. Agricultural growth slowed to

    only 2.5% because of higher production costs, mainly from higher power,

    fuel, and fertilizer prices. Industry grew robustly by 9.5%, boosted by

    construction and small-scale manufacturing for the domestic market. Service

    sector growth stood at 6.1%.

    PESTEL Analysis

    The mission of Pestel-Analysis.com is to provide access to the top

    international risk analysis information available online. Brought to you by

    Communication 18 Ventures, we aggregate data that assists you in your

    PESTEL research. One must use accurate and relevant information when

    analyzing the Political, Economic, Social, Technical, Environmental, and

    Legal aspects of a country, whether it is ones own country, or one foreign to

    theirs.

    Political

    Political factors are basically to what degree the government intervenes in the

    economy. Specifically, political factors include areas such as tax policy,

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    labour law, environmental law, trade restrictions, tariffs, and political

    stability.). Furthermore, governments have great influence on the health,

    education, and infrastructure of a nation. Now political situation is not good.

    often different political parties called strike. so bank political is not good but

    not bad.

    Economic

    Economic factors include economic growth, interest rates, exchange rates and

    the Economic factors include economic growth, interest rates, exchange rates

    and the inflation rate. These factors have major impacts on how businesses

    operate and make decisions. For example, interest rates affect a firms cost of

    capital and therefore to what extent a business grows and expands. Exchange

    rates affect the costs of exporting goods and the supply and price of imported

    goods in an economic. These factors have major impacts on how businesses

    operate and make decisions.

    Social

    Social factors include the cultural aspects and include health consciousness,

    population growth rate, age distribution, career attitudes and emphasis on

    safety. The five Banks have contributed different social activities. They are

    awarded scholarship to the brilliant student They have also awarded

    scholarship to the poor brilliant student. They have distributed blanket to the

    helpless people of different areas of country in the winter season

    Technological

    Technological factors include technological aspects such as R&D activity,

    automation, technology incentives and the rate of technological change. They

    can determine barriers to entry, minimum efficient production level and

    influence outsourcing decisions. Furthermore, technological shifts can affect

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    costs, quality, and lead to innovation. The five banks have online Remittance

    management system and successfully implemented a online Banking Solution

    thought its branches.

    Legal

    Legal factors include discrimination law, consumer law, antitrust law,

    employment law, and health and safety law. These factors can affect how a

    company operates, its costs, and the demand for its products. The five banks

    have legal it comply with law society codification of right.

    Chapter- Industry Analysis

    PORTERS 5 forces model

    Porters 5 forces industry analysis. Porters model is based on the insight that

    a corporate strategy should meet the opportunities and threats in the

    organizations external environment. Especially, competitive strategy should

    base on and understanding of industry structures and the way they

    change.Porter has identified five competitive forces that shape every industry

    and every market. These forces determine the intensity of competition and

    hence the profitability and attractiveness of an industry. The

    Bargaining power of buyers

    An advantage to consumers that comes from gathering together to put

    collective pressure on producers to lower prices or improve quality. The

    bargaining power of buyers typically has the strongest effect on pricing when

    buyers are organized and they collectively account or much of the producers

    income, they are interested in a product that has an excess of supplier, and

    they are interested in making substantial purchases. But banks have no

    bargaining power of buyer. That means we are no bargaining with the bank.

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    Bargaining power of suppliers

    Advantage that result when (1) suppliers are concentrated it is, however,

    usually illegal for them to openly or secretly form a cartel . (2) too few goods

    are chased by too many buyer, (3) a suppliers goods are unique or highly

    differentiated with few or no substitutes, (4) suppliers are forward integrated

    (see forward integration and/or (5) high costs are involved in switching

    from one supplier to another .the bank have bargaining power of supplier.

    that mean the banks are bargaining with supplier. Supplier competition

    ability to forward vertically integrate and cut out the buyer. The bargaining

    power of suppliers is also described as the market of inputs.

    Threat of new entrants

    threat of new entrants refers to the threat new competitors pose to existing

    competitors in an industry. A profitable industry will attract more

    competitors looking to achieve profits. If it is easy for these new entrants to

    enter the market if entry barriers are low this poses a threat to the firms

    already competing in that market. The banks have threat of new

    entrants. The banks have brand equity, capital requirements, Access to

    distribution, Switching costs , Customer loyalty to established brands,

    Absolute cost . Industry profitability; the more profitable the industry the

    more attractive it will be to new competitors.

    Threat of substitute products or services

    The existence of products outside of the realm of the common product

    boundaries increases the propensity of customers to switch to alternatives.

    The banks have threat of substitute product or services. Buyer propensity to

    substitute Relative price performance of substitute Buyer switching costs

    Perceived level of product differentiation Number of substitute products

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    available in the market Ease of substitution. Information-based products are

    more prone to substitution, as online product can easily replace material

    product

    Competitive Rivalry between Existing Players

    This force describes the intensity of competition between existing players

    (companies) in an industry. High competitive pressure results in pressure on

    prices, margins, and hence, on profitability for every single company in the

    industry. Competition between existing players is likely to be high. For most

    industries, the intensity of competitive rivalry is the major determinant of the

    competitiveness of the industry. There are many players of about the same

    size, Players have similar strategies

    Chapter-6 Company Analysis

    SWOT Analysis

    SWOT analysis is the detailed study of an organizations exposure and

    potential in perspective of its strength, weakness, opportunity and threat. This

    facilitates the organization to make their existing line of performance and

    also foresee the future to improve their performance in comparison. As

    though this tool, an organization can also study its current position, it can

    also be considered as an important tool for making changes in the strategic

    management of the organization.

    Strength Weakness

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    Opportunity Threat

    SWOT Analysis of National Bank

    Strengths

    - National Bank Limited has already established a favorable reputation

    in the banking industry of the country. It is one of the leading private sectorcommercial banks in Bangladesh.

    - National Bank Limited has already achieved a high growth rate

    accompanied by an impressive profit growth rate in 2001.

    - National Bank has the reputation of being the provider of good quality

    service too its , potential customer.

    Weaknesses

    - The main important thing is that the bank has no clear mission

    statement and strategic plan.

    - The banks have any long-term strategies of whether it wants to focus

    on retail banking or become a corporate bank.

    - The bank failed to provide a strong qualityrecruitment policy in the

    lower and some mid level position.

    - The poor service quality has become major problem for the bank. The

    quality of the service at National Bank is higher than Dhaka Bank or Prime

    Bank.

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    - The bank main weakness is having a group of unsatisfied employees.

    Opportunity

    - National Bank reduces the business risk and Bank has to expand their

    business portfolio.

    - Starting merchant banking the activity in the secondary financial

    market has direct impact on the primary financial market.

    - National Bank must expand its product line to enhance its sustainable

    competitive advantage.

    Threats:

    - All sustain banks and upcoming foreign, private banks posses

    enormous threat to National Bank Limited.

    - If that happens the intensity of competition will use further and banks

    will have develop strategies to compete against an on slough of foreign the

    banks.

    - The default risks of all terms of loan have to be minimizing in order to

    sustain in the financial market.

    SWOT-Analysis of National Credit &Commerce Bank NCCB

    Strengths

    - NCC Bank Limited has already established a favorable reputation in

    the banking industry of the country. It is one of the leading private sector

    commercial banks in Bangladesh.

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    - NCC Bank has already achieved a high growth rate accompanied by

    an impressive profit growth rate in 2001.The number of deposits and loan

    and advances are also increasing rapidly.

    - NCC Bank Limited has the reputation of being the provider of good

    quality service too its, potential customer.

    - NCC Bank has interactive corporate culture. The working environment

    is very friendly, interactive and informal.

    Weaknesses

    - Not proper utilization of banking system and important thing is that

    the bank has no clear mission statement plan.

    - The banks have any long-term strategies of whether it wants to focus

    on retail banking or become a corporate bank.

    - The bank failed to provide a strong qualityrecruitment policy in thelower and some mid level position.

    - The poor service quality has become major problem for the bank. The

    quality of the service at National Bank is higher than Dhaka Bank or Dutch

    Bank but The bank has to compete with multinational Bank located here.

    Opportunity:

    - NCC bank reduces the business risk and Bank has to expand their

    business portfolio.

    - Starting merchant banking the activity in the secondary financial

    market has direct impact on the primary financial market.

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    - Opportunity in the retail banking lies in the fact that country increased

    population is gradually learning to adopt consumer finance.

    Threats

    - All sustaining multinational banks and upcoming foreign, private

    banks significant threat to NCC Bank Limited.

    - The default risks of all terms of loan have to be minimizing in order

    to sustain in the financial market.

    - If that happens the intensity of competition will rise further and banks

    will have to

    Develop strategies to compete against these local and foreign banks.

    SWOT-Analysis of One bank

    Strengths

    - One bank has already established a role mode in the Banking sector of

    Bangladesh.

    - It is one of the leading private sector commercial banks in

    Bangladesh.

    - One Bank has already achieved a high growth rate accompanied by an

    impressive profit growth rate in 2001.

    - The bank is number of deposits and loan and advances are also

    increasing rapidly.

    - The banks provide fulfillment for our People and create shareholder

    value.

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    - Good working environment.

    Weaknesses

    - No clear mission statement plan.

    - The banks have any long-term strategies of whether it wants to focus

    on retail banking or become a corporate bank.

    - This is a weakness of one bank that it is having a group of unsatisfied

    employees.

    - The bank has lack of motivation exists in person filling those position.

    - The poor service quality has become major problem for the bank. The

    quality of the service at National Bank is higher than Dhaka Bank or Dutch

    Bank.

    Opportunity:

    - In order to reduces the business risk.

    - The bank management can consider options of starting merchant

    banking or diversify into leasing and insurance sector.

    - Merchant Banking activity in the secondary financial market has

    direct impact on the primary financial market.

    - Investment in the secondary market governs the national economic

    activity.

    Threats

    - Default risks of all terms of loan have to be minimizing in order to

    sustain in the financial market.

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    - Because default risk the organization may be become bankrupt One

    bank has to remain vigilant about this problem so that proactive strategies are

    taken to minimize this problem if not eliminate.

    - The low compensation package of the employees from mid level to

    lower position is not able to keep the employee motivation.

    Premier Bank SWOTAnalysis

    Strengths

    - The Bank has a clear vision towards its ultimate destiny- to be the best

    amongst the top financial institutions.

    - The bank to be the most caring and customer friendly provider of

    financial services, creating opportunities for more people in more places.

    - The bank to ensure stability and sound growth whilst enhancing the

    value of shareholders.

    - Primer bank to provide congenial atmosphere which will attract

    competent work force that will proud and eager to work for the Bank.

    Weaknesses

    - No clear vision.

    - The bank has to follow aggressive marketing campaign.

    - The bank has to aggressively adopt technology.

    - Long term strategies not enough. aggressively adopt technology

    Opportunity:

    - Service first is not just an abstraction; we mean it. It holds a

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    central focus in our operation.

    - Discharge of quick & quality service is the hallmark for banking

    standard.

    - The bank is a good understanding with them, while carrying out

    business transactions, helps us perceive their goals and thus, enable to

    respond pro-actively to their financial needs.

    Threats

    - Competitors are using several new marketing policies to attract the

    customer.

    - They obey ethical standard in all operation.

    - Competitors are offering innovative new products and services.

    - Upcoming of new commercial banks, leasing companies and merchant

    bank etc. they all are competitors.

    - The bank Expertise, efficiency and experience in Management

    Prime bank SWOT-analysis

    Strengths

    - Adequate capitalization.

    - Good profitability. This banking is introduced online banking.

    - It provides quick and prompt service to its customer.

    - Bank quickly expanding its business all over the country.

    - T 24 has been implemented at the branch.

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    - It is located at a convenient place of the city.

    Weaknesses

    - Long term investment is not sufficient.

    - Lack of experienced employees in junior level management.

    - Shortage of lower level manpower.

    - Capital resources are short for its investment.

    - Has not yet expanded its network in rural areas.

    - Insufficient workforce.

    Opportunity:

    - Launching own master card-Credit service.

    - It can expand its network in rural areas.

    - Potential to expand franchise bases on customer.

    - Internet and SMS Banking.

    - Opportunity to take market share from rivals by offering new

    innovative product or service.

    - Clients reliability on MTBL is growing day by day on the bank.

    Threats:

    - Very competitive market.

    - Central Banks policies sometime are not in favor of the private banks

    policies.

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    - Entry of new commercial banks, leasing companies and merchant

    bank etc. they all are competitors.

    - Competitors are offering innovative new products and services.

    - Competitors are using several new marketing policies to attract the

    customer.

    Chapter 07: Ratio analysis

    Risk analysis

    Business risk analysis

    Business analysis is a technique to identify and assess factors that may

    jeopardize the success of a project or achieving a goal. This technique also

    helps to define preventive measures to reduce the probability of these factors

    from occurring and identify to successfully deal with possible negative

    effects on the competitiveness of the company.

    Financial risk analysis

    Financial risk analysis the practice of creating economic value in a firm by

    using financial instruments to manage exposure to risk, particularly credit

    risk and market risk. Other types include Foreign exchange, Shape,

    Volatility, Sector, Liquidity, Inflation risks, etc

    Financial risk analyses are two kinds. These are

    1) Degree of Operating LeverageDOL

    2) Degree of Financial Leverage DFL

    Credit risk

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    Credit risk refers to the risk that a borrower will default on any type of debt

    by failing to make payments which it is obligated to do. The risk is primarily

    that of the lender and includes lost principal and interest, disruption to cash

    flows, and increased collection costs. The loss may be complete or partial and

    can arise in a number of circumstances

    Degree of Operating LeverageDOL

    A type of leverage ratio summarizing the effect a particular amount of

    operating leverage has on a companys earnings before interest and taxes

    (EBIT). Operating leverage involves using a large proportion of fixed costs to

    variable costs in the operations of the firm. The higher the degree of

    operating leverage, the more volatile the EBIT figure will be relative to a

    given change in sales

    Degree of Financial LeverageDFL

    A leverage ratio summarizing the affect a particular amount of financialleverage has on a companys earnings per share (EPS). Financial leverage

    involves using fixed costs to finance the firm, and will include higher

    expenses before interest and taxes (EBIT). The higher the degree of financial

    leverage, the more volatile EPS will be, all other things remaining the same.

    Current ratio

    The current ratio is the best known ratio of financial analysis. It presents in

    relative terms what net working capital measures in absolute terms.

    Quick ratio:

    The quick ratio, also known as the acid-test ratio, is a liquidity ratio that is

    more refined and more stringent than the current ratio.

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    Cash ratio

    The cash ratio is the most conservative of the three liquidity ratios covered in

    this article. As the name implies, this ratio is simply the ratio of cash and

    equivalents compared to current liabilities

    Debt ratio

    Debt ratio measures the percentage of total funds in the business provided by

    its creditors.

    Return on asset

    The return on assets (ROA) percentage shows how profitable a companys

    assets are in generating revenue.

    Debt Equity Ratio

    The debt-to-equity ratio (D/E)is a financial ratio indicating the relative

    proportion of shareholders equity and debt used to finance a companys

    assets

    Priceearnings ratio

    The price-to-earnings ratio, orP/E ratio, is an equity valuation measure

    defined as market price per share divided by annual earnings per share.

    7.6 Ratio analysis

    Current ratio

    Company name 2009 2010 2011

    National bank Limited 2.25 2.26

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    NCC Bank Limited 2.46 3.53 1.18

    One Bank Limited 6.77 27.77 11.40

    Premier Bank Limited - 2.18 4.11

    Prime bank Limited 12.27 0.35 1.26

    Quick ratio

    Company name 2009 2010 2011

    National bank Limited 2.25 2.26

    NCC Bank Limited 2.46 3.53 1.18

    One Bank Limited 6.77 27.77 11.40

    Premier Bank Limited 2.18 4.11

    Prime bank Limited 1.27 .35 1.26

    Cash ratio

    Company name 2009 2010 2011

    National bank Limited 17.68 2.11

    NCC Bank Limited 1.99 3.73 1.57

    One Bank Limited 5.90 22.35 0.73

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    Premier Bank Limited 1.86 1.55

    Prime bank Limited 0.355 2.47 1.23

    Return on asset

    Company name 2009 2010 2011

    National bank Limited 3.6% 5.08%

    NCC Bank Limited 2.61% 2.84% 2.61%

    One Bank Limited 4.37% 5.92% 4.54%

    Premier Bank Limited 2.63% 2.30%

    Prime bank Limited 2.16% 2.37% 2.07%

    Price earning ratio

    Company name 2009 2010 2011

    National bank Limited 14.14 times 12.54 times

    NCC Bank Limited 13.28times 18.76 times 26.57 times

    One Bank Limited 12.97 times 12.58 times 12.50 times

    Premier bank Limited 8.85 times 10.67 times

    Prime bank Limited 16.60 times 12.02 times 9.48 times

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    Debt ratio

    Company name 2009 2010 2011

    National bank Limited 87% 85.37%

    NCC Bank Limited 90.84% 88.80% 88.79%

    One Bank Limited 93.20% 91.71% 90.61%

    Premier Bank Limited 90.20% 90.61%

    Prime bank Limited 90.23% 90.42%

    Debt equity ratio

    Company name 2009 2010 2011

    National bank Limited 29.28% 85.8%

    NCC Bank Limited 98.10% 97.58% 99.78%

    One Bank Limited 93.20% 91.71% 90.61%

    Premier Bank Limited 90.94% 95.22%

    Prime bank Limited 90.23% 80.67% 86.07%

    Degree of Operating Leverage

    Company name 2009 2010 2011

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    National bank Limited 1.32 .737

    NCC Bank Limited 1.48 1.22 1.68

    One Bank Limited 3.93 .41 .424

    Premier Bank Limited 1.72 1.03

    Prime bank Limited .454 .441 3.51

    Degree of financial leverage

    Company name 2009 2010 2011

    National bank Limited 2.09 1.90

    NCC Bank Limited 1.62 1.74 1.57

    One Bank Limited 2.33 .166 2.05

    Premier Bank Limited 1.46 1.89

    Prime bank Limited .163 1.71 1.58

    Z-score

    National bank Limited

    Year T1 T2 T3 T4 z-score zone

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    2010 0.0435 0.0302 .753 0.127 1.02 Distress

    2011 0.039 0,0302 .075 0.11 .9748 Distress

    National bank is Distress.

    NCC Bank Limited

    Year T1 T2 T3 T4 z-score zone

    2009 .0344 .0169 .187 .089 1.63 Grey

    2010 .0098 .0183 .057 .105 1.15 Grey

    2011 .5644 .0218 .1014 .067 4.49 Safe

    NCC Bank is grey and safe.

    One Bank Limited

    Year T1 T2 T3 T4 z-score zone

    2009 .081 1.26 .058 0.60 5.09 Safe

    2010 .0917 0.23 .0416 0.90 5.09 Safe

    2011 .0965 0.018 .424 .103 6.33 Safe

    One Bank safe Zone.

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    Premier Bank Limited

    Year T1 T2 T3 T4 z-score zone

    2009 0.048 0.0171 0.0518 0.0895 1.30 Grey

    2010 .097 .020 .071 .080 1.23 Grey

    Premier Bank is grey zone.

    Prime bank Limited

    Year T1 T2 T3 T4 z-score zone

    2009 .034 .067 .081 .077 1.65 Grey

    2010 0.0628 0.176 .296 1.21 4.56 Safe

    2011 0.145 .140 .0582 ..104 2.09 Safe

    Prime bank is Grey and Safe zone.

    Part -5 Decision Making and Conclusion

    Chapter-8: Decision making and conclusion

    Decision making

    Company name Future prospect based on risk

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    different ratio

    National bank Limited This Bank ratio analyses is

    so so. But z-score are not

    good .they have not big

    profit so this bank is risky

    Because this bank ratio

    falls compare two or three

    year.

    The bank ratio is risky and

    other thing is not good. But

    A category bank but bank

    more risk.

    NCC Bank Limited The NCC BL is ratio

    1sttime not good but last

    year this bank ratio is so

    good.

    And compare 3 year bank

    ratio down then up.

    So this bank less risky.

    The bank ratio is good

    The bank less risk because

    this bank position up to

    down.

    One Bank Limited The one bank is position is

    best.

    And 3 year ratio compare

    good.

    So bank is less risky.

    The bank less risk but ratio

    position medium and good.

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    Premier bank Limited The bank position is not bad.

    The 2 year ratios are

    medium.

    So bank are not more

    risky.

    T he bank is not more risk

    and position of bank

    medium

    Prime bank Limited The bank position is not bad.

    the 3 year ratio medium

    ,good and medium.

    So bank is not more risky

    The bank is less risk.

    Conclusion

    The Chittagong Stock Exchange is the prime bourse of the country. Through

    its nonstop highly fault tolerant screen based automated trading system the

    exchange has been offering facilities for transparent and highly efficient

    provisions for secondary market activities of securities. I had the opportunity

    to work for this organization during my internship program. I was placed at

    the of CSE main office, Stock Exchange Building ,9E motijheel. During this

    time I got opportunity to observe the overall activities process of the

    CSE specially about CSE performance and potential Banks. of CSE .

    The overall performance of 5 bank is satisfactory than the all other listed

    Banks. .

    Companys corporate governance is efficiently and trying there level best.

    The CSE has been able to attract a significant volume of foreign funds and

    the number of foreign investor is growing day by day .

    Reference

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    INVESTMENTS , Jones

    PRINCIPAL MANAGERIAL FINANCE, LAWRANCE J. GITMA

    Annual report 2011, National Bank Limited.

    Annual report 2011, One Bank Limited

    Annual report 2010, One Bank Limited

    Dhaka Stock exchange.

    Annual report 2009,Prime Bank Limited

    Annual report 2010,Prime Bank Limited

    Bibliography

    www.csebd.com

    www.onebank.com

    www.primebank.com

    www.premierbank.com

    www.nationalbank.com

    www.nccbl.com