Assignment on Swot Analysis of IBBL

SWOT ANALYSIS OF IBBL:

Every organization is composed of some internal strengths and weaknesses and also has some external opportunities and threats in its whole life cycle.

Strengths:

IBBL provides its customer excellent and consistent quality in every service.
IBBL is a financially sound company.
IBBL utilizes state-of-the art technology to ensure consistent quality and operation.
IBBL provides its works force an excellent place to work.
IBBL has already achieved a good will among the clients.
IBBL has a research division.

Weaknesses:

IBBL lacks well-trained human resource in some area.
IBBL lacks aggressive advertising
The procedure of credit facility is to long compare to other banks.
Employees are not motivated in some areas.

Opportunities:

Emergence of E-banking will open more scope for IBBL.
IBBL can introduce more innovative and modern customer service.
Many branches can be open in remote location.
IBBL can recruit experienced, efficient and knowledgeable work force as it offers good working environment.

Threats:

The worldwide trend of mergers and acquisition in financial institutions is causing problem.
Frequent taka devaluation and foreign exchange rate fluctuation is causing problem.
Lots of new banks are coming in the scenario with new service.
Local competitors can capture huge market share by offering similar products.

APPENDIX:

Performance of IBBL:

Particulars	2000	2001	2002	2003	2004
Authorized Capital	1,000	1,000	1,000	3000	3000
Paid-up Capital	320	640	640	1920	2304
Reserved Fund	1,759.65	1,998.04	2,852.07	3,280.37	4329.92
Total Equity	2,671.06	2,993.24	3,540.52	5,266.47	6691.12
Deposits (including Bills Pay.)	32,112.81	41547.29	55,461.62	69,941.79	87841.01
Investments (Gross)	29,563.20	37,648.75	49,185.92	59,041.65	79392.72
Import Business	25,327	25,907	33,788	46,237	59804
Export Business	16,889	16,082	16,673	21,738	29151
Remittance	7,644	9,879	14,670	16,668	23669
Total Foreign Ex. Business	49,860	51,868	65,131	84,643	112624
Total Income	3,207.81	4,259.55	5,234.07	6,841.29	8262.73
Total Expenditure	2,877.57	3,683.43	4,240.02	6,039.28	6419.74
Net Profit before Tax	330.24	576.12	994.05	802.01	1842.99
Payment to Govt.(Income Tax)	104.03	181.48	397.62	426.61	829.35
Dividend	25%	25%	25%	20%	20%
Total Assets (including Contra)	49,250.36	58,550.81	78,360.74	98,046.85	125776.94
Total Assets (excluding Contra)	39,362.27	49,458.22	65,080.70	81,704.74	102149.28
Fixed Assets	1,121.15	1,276.89	1,723.43	2,036.66	2552.70
No. of Foreign Correspondents	775	815	830	840	850
Number of Shareholders	7,549	9,917	10,757	14,196	15892
Number of Employees	2,685	3831	4249	4673	5306
Number of Branches	116	121	128	141	155
Book Value per Share (Taka)	4,174	4,677	5,532	2,743	2904
Earning per Share (Taka)	353	617	932	196	519
Market Value per Share (Taka)	3,305	3,205	3,956	4,548	5110
Capital Adequacy Ratio	10.59%	9.24%	8.64%	9.43%	9.21%

Note: Tk. in (Million).

Foreign Exchange Business performance of IBBL compared to that of national position:

In million taka.

Year	Import			Export			Remittance
Year	National	IBBL	% of IBBL	National	IBBL	% of IBBL	National	IBBL	% of IBBL
1991	127986	6204	4.85	68235	3967	5.81	29835	1814	6.08
1992	146930	8778	5.97	81600	4949	6.06	34692	2029	5.85
1993	163500	8612	5.27	92985	5842	6.28	40260	2403	5.97
1994	201105	14623	7.27	114645	7790	6.79	45847	2943	6.42
1995	257765	21218	8.23	134935	11016	8.16	88873	2447	4.40
1996	293190	17874	6.10	152105	11764	7.73	56352	3328	5.91
1997	323625	17370	5.37	184785	14469	7.83	66173	4806	7.26
1998	363335	20238	5.57	206220	14894	7.22	75662	6361	8.41
1999	403790	20396	5.05	228870	14798	6.47	90024	8415	9.35
2000	463990	25327	5.46	286710	16889	5.89	98481	7644	7.76
2001	492140	25907	5.26	319115	16082	5.04	115785	9879	8.53
2002	495210	33788	6.82	314550	16673	5.30	164844	14670	8.90
2003	599250	46237	7.72	361870	21738	6.01	184913	16668	8.01
2004	303510 Jan–Aug	59804 Jan-Dec	—	466200 Jan–Aug	29151 Jan-Dec	—	139964 Jan–Aug	23669 Jan-Dec	—

Source: Economic Trends published by Bangladesh Bank.

Foreign Exchange Business performance of IBBL during the year 2003 & 2004 and target for 2005:

IMPORT:

SL No.	Name of Branch	Achieved 2003	Target for 2004	Achieved 2004	%of achieved over target	Target for 2005
Corporate Branch :
01	Local	10025	14536	12847	88	17986
02	F. Exchange	3328	4826	4585	95	6419
03	Nowabpur	3629	5262	3774	72	5284
04	Head Office	1039	1560	2207	141	3090
Sub Total		18021	26184	23413	89	32778
Zonal Branch :
01	Dhaka South	8962	13675	11169	82	16083
02	Dhaka North	1253	2301	782	34	1571
03	Chittagong	8171	11913	9338	78	13429
04	Bogra Zone	4779	6930	7365	106	10317
05	KhulnaZone	4475	6606	7460	113	10891
06	Comilla Zone	576	676	277	41	1016
Sub Total		28216	42101	36391	86	53307
Grand Total		46237	68285	59804	88	86085

EXPORT:

SL No.	Name of Branch	Achieved 2003	Target for 2004	Achieved 2004	%of achieved over target	Target for 2005
Corporate Branch :
01	Local	13124	18374	16200	88	22683
02	F. Exchange	2054	2875	3028	105	4239
03	Nowabpur	560	784	769	98	1077
04	Head Office	228	330	709	215	993
Sub Total		151166	22363	20708	93	28991
Zonal Branch :
01	Dhaka South	4764	7063	6848	97	9587
02	Dhaka North	193	604	363	60	508
03	Chittagong	571	950	860	91	1204
04	Bogra Zone	99	276	194	70	272
05	KhulnaZone	145	303	178	59	249
06	Comilla Zone	—–	50	—–	—-	—-
Sub Total		5772	9246	8443	91	11820
Grand Total		21738	30609	29151	92	40811

REMITTANCE:

SL No.	Name of Branch	Achieved 2003	Target for 2004	Achieved 2004	%of achieved over target	Target for 2005
Corporate Branch :
01	Local	5482	8234	5019	61	7278
02	F. Exchange	232	348	356	102	516
03	Nowabpur	58	87	39	45	57
04	Head Office	330	512	380	74	551
Sub Total		6109	9181	5794	63	8401
Zonal Branch :
01	Dhaka South	1594	2404	2652	110	3850
02	Dhaka North	1737	2617	3173	121	4604
03	Chittagong	1564	2360	2068	88	3011
04	Bogra Zone	484	730	945	128	1389
05	KhulnaZone	534	825	994	120	1451
06	Comilla Zone	4646	7003	8043	115	11684
Sub Total		10559	15945	11875	112	25990
Grand Total		16668	25126	23669	94	34391

TOTAL :

SL No.	Name of Branch	Achieved 2003	Target for 2004	Achieved 2004	%of achieved over target	Target for 2005
Corporate Branch :
01	Local	28638	41144	34068	83	47946
02	F. Exchange	5614	8049	7969	99	11174
03	Nowabpur	4247	6133	4582	75	6417
04	Head Office	1597	2402	3296	137	4633
Sub Total		40098	57728	49915	86	70171
Zonal Branch :
01	Dhaka South	15320	23142	20669	89	29521
02	Dhaka North	3183	5522	4318	78	6684
03	Chittagong	10306	15223	12266	81	17645
04	Bogra Zone	5362	7942	8504	107	11977
05	KhulnaZone	5154	7734	8632	112	12591
06	Comilla Zone	5222	7729	8320	108	12700
Sub Total		94547	67292	62709	93	91117
Grand Total		84643	125020	112624	90	161287

Confidential Report 2004

Summary of Foreign Exchange Business performance of IBBL as on 31.12.04

SL No	Nature of Business	Achievement during 2003	Target for 2004	Achievement during 2004	% of achievement over target 2004	% of growth over 2003	Target for 2004	Projected Growth Rate
01	Import	46237	67044	59804	89.20	29.34	86085	44
02	Export	21738	30433	29151	95.79	34.10	40811	40
03	Remittance	16668	25002	23669	94.67	42.00	34391	45
Total		84643	122479	112624	91.95	33.06	151287	43

Foreign Exchange Business:

SL No	Nature of Business	2004		2003		Growth of 2004 over 2003
SL No	Nature of Business	Amount	% of Total Amount	Amount	% of Total Amount	Growth of 2004 over 2003
01	Import	59804	53	46237	54	29
02	Export	29151	26	21738	26	34
03	Remittance	23669	21	16668	20	42
Total		112624	100	84643	100	33

Element of Import:

SL No	Element	2004		2003
SL No	Element	Amount	% of Total Amount	Amount	% of Total Amount
01	Raw Cotton, Thread, Fabrics & Accessories	16767	28	15385	33
02	Metal	5730	10	1508	3
03	Fertilizer	5102	8	3573	8
04	Instruments	4238	7	3165	7
05	Wheat	4172	7	2506	5
06	Chemicals	2848	5	1286	3
07	Agricultural Instruments	2451	4	2294	5
08	Edible Oil	2382	4	733	2
09	Rice	1892	3	2107	4
10	Motor car	1199	2	1831	4
11	Scrap Vessels	1160	2	316	1
12	Others	11863	20	11533	25
Total		59804	100	46237	100

Element of Export:

SL No	Element	2004		2003
SL No	Element	Amount	% of Total Amount	Amount	% of Total Amount
01	Readymade Garments	22842	78	18737	86
02	Frozen foods & Vegetables	464	2	463	2
03	Jute & Jute made products	343	1	241	1
04	Others	5502	19	2297	11
Total		29151	100	21738	100

Foreign Exchange Business: 2000-2004

Year	Import	Export	Remittance	Total	Growth Rate (Year to Year)
2000	25,327	16,889	7,644	49,860	14%
2001	25,907	16,082	9,879	51,868	4%
2002	33,788	16,673	14,670	65,131	26%
2003	46,237	21,738	16,668	84,643	30%
2004	59,804	29,151	23,669	112,624	33%

Import, Export & Remittance of IBBL :

Growth
Year (Tk. in Thousand)

Element	2000	2001	2002	2003	2004
Import	25327	25907	33788	46237	59804
Export	16889	16082	16673	21738	29192
Remittance	7644	9879	14670	16668	23669

Total Foreign Exchange Business of IBBL :

	2000	2001	2002	2003	2004
Total	49860	51868	65131	84643	112665

CONCLUSION:

Bangladesh is a developing country. Without developing banking sectors this country’s business sector is not possible to progress rapidly. In such conditions IBBL is trying to develop banking sector through welfare and servicing to the people. Islami economy and banking are bound together. This economy and Banking is not possible to establish without Tauhid, Reshalat and trust of Akhirat. This economy and banking are suitable to operate as a Muslims country. But our Government is not aware to establish such system. IBBL has emerged facing the many obstacles yet. This bank is trying to operate their activities according to Islami Shariah. Islam is a religion for human welfare as well the social welfare. All the steps of Islam are only for the welfare for human being. Above discussion also proves that interest is a curse and in the banking transaction only Islamic bank can help people to relieve of this curse. Islamic banking is the superior banking system. We have to take necessary steps to remove all problems that stand as a great obstacle before Islamic banks as early as possible for the development of Islamic banks.