An

Internship/Thesis Report
on
Financial Performance Analysis of Eastern Bank Limited
Submitted by:
Name: Sha Newaz Shomi
ID: 1701010069
Program: BBA
BBA (Major in Accounting)
Semester: 12th

Submitted to:

Bachelor of Business Administration

Sonargaon University (SU)

Dhaka- 1215
Date of Submission: March 31, 2021
 An
Internship Report
on
Financial Performance Analysis of Eastern Bank Limited

Supervised By:

Farjana Yeasmin Chowdhury

Lecturer
Department of Business Administration
Sonargoan University

Submitted By:

Name: Sha Newaz Shomi

ID: 1701010069
Program: BBA
BBA (Major in Accounting)
Semester: 12th

Bachelor of Business Administration

Sonargaon University (SU)

Dhaka- 1215
Date of Submission: March 31, 2021
 Letter of Transmittal

March 31, 2021

To
Farjana Yeasmin Chowdhury
Lecturer
Department of Business Administration
Sonargaon University (SU)

Subject: Submission of Internship report on Financial Performance Analysis of Eastern Bank

Ltd.

Dear Madam,
This is my Pleasure to present my internship report entitled “Financial performance analysis
of Eastern Bank Limited.” I have conducted my internship program in Eastern Bank Limited
42 Gulshan North, Road-52, Dhaka-1212 under your close supervision.

I tried my best to put meticulous effort for the preparation of this report. Any short comings
or flaw may arise as I am very much novice in this aspect. I will wholeheartedly welcome any
clarification and suggestion about any view and conception disseminated in my report your
support in this regard will be highly appreciated.

Sincerely,

Sha Newaz Shomi

ID: 1701010069
Bachelor of Business Administration
Sonargaon University (SU)
 Letter of Approval

This is certifying that Sha Newaz Shomi, ID: 1701010069, BBA (Accounting), is a regular
student of department of Business Administration. She was successfully completed her
internship program at Eastern Bank Limited and has prepared this internship under my direct
supervision. She assigned internship topic is “Financial Performance Analysis of Eastern Bank
Limited.” I think that the report will intentioned of fulfilling the partial requirement of BBA
Program.

………………………...............…
Farjana Yeasmin Chowdhury
Lecturer
Department of Business Administration
Sonargaon University (SU)
 Certification

Sha Newaz Shomi, a student of BBA, ID: 1701010069 has completed internship report on
“Financial Performance Analysis of Eastern Bank Limited.” as a partial requirement for
obtaining BBA degree. I have read the report and found that it meets the standard of BBA
internship report Sha Newaz Shomi has completed the report my herself under my
supervision.

I wish her all the success in life.

………………………..............……
Farjana Yeasmin Chowdhury
Lecturer
Department of Business Administration
Sonargaon University (SU)
 ACKNOWLEDGEMENT

First, I would like to express my gratitude to almighty Allah to give me the strength to
complete the report within the stipulated time.

I am deeply indebted to my Academic Supervisor “Farjana Yeasmin Chowdhury” madam for

her whole hearted supervision. Her suggestion and comments were really a great source of
spirit to make the report a good one.

Sincerely,

Sha Newaz Shomi

ID: 1701010069
Bachelor of Business Administration
Sonargaon University (SU)
 EXECUTIVE SUMMARY

Eastern Bank Ltd. (EBL) began its journey in 1992 with a vision to become the bank of choice
and to be the most valuable financial brand in Bangladesh. Over the years EBL has established
itself as a leading private commercial bank in the country with undisputed leadership in
Corporate Banking and a strong Consumer and SME growth engines. EBL's ambition is to be
the number one financial services provider, creating lasting value for its clientele,
shareholder, and employees and above all for the community it operates in.

The topic of my report is “Financial Performance Analysis of Eastern Bank Limited”. My focus
of the report is basically Eastern Bank’s financial performance analysis and comparison with
other two banks such as BRAC Bank Ltd & City Bank Ltd.

At first, I focused on the background of Eastern Bank Ltd. Then I tried to give brief idea about
Eastern Bank Ltd the Consumer banking division, Corporate banking division and SME
division. Then I tried to mention what I have done in my project part that is performance
analysis of Eastern Bank Ltd.

This report aims to analyzing Eastern Bank Ltd overall performance.

Contents
Submitted by: ............................................................................................................................................ 1
Submitted to: ............................................................................................................................................ 1
An .............................................................................................................................................................. 2
Financial Performance Analysis of Eastern Bank Limited.......................................................................... 2
Farjana Yeasmin Chowdhury..................................................................................................................... 2
Letter of Transmittal ................................................................................................................................. 3
Letter of Approval ..................................................................................................................................... 4
Certification............................................................................................................................................... 5
ACKNOWLEDGEMENT ............................................................................................................................... 6
Chapter: 01 ...................................................................................................................................................... 10
Introduction ................................................................................................................................................. 11
Origin of the Report .................................................................................................................................... 11
Problem Statement ...................................................................................................................................... 11
..................................................................................................................................................................... 11
Objective of the study ................................................................................................................................. 12
Methodology ............................................................................................................................................... 12
Primary data sources ................................................................................................................................... 12
Secondary data sources ............................................................................................................................... 12
Scope ........................................................................................................................................................... 12
Limitations .................................................................................................................................................. 13
Chapter: 02 Organization Part ......................................................................................................................... 14
Background of Eastern Bank Limited ......................................................................................................... 15
Corporate Vision ......................................................................................................................................... 16
Corporate Mission ....................................................................................................................................... 16
Corporate Values ......................................................................................................................................... 17
Strategic Priority ......................................................................................................................................... 17
Corporate Directory .................................................................................................................................... 18
Composition of the Group EBL .................................................................................................................. 19
Network Coverage ...................................................................................................................................... 19
Divisions of Eastern Bank Ltd .................................................................................................................... 20
Products Basket & Service Propositions ..................................................................................................... 21
Card Products .............................................................................................................................................. 23
NRB Products ............................................................................................................................................. 25
Digital Banking & Payments ...................................................................................................................... 25
SME Banking .............................................................................................................................................. 26
Corporate Banking ...................................................................................................................................... 27
Cash Management Solutions ....................................................................................................................... 27
Working Capital Solutions .......................................................................................................................... 28
Treasury Products ....................................................................................................................................... 29
 SWOT analysis of Eastern Bank Ltd .......................................................................................................... 30
Strengths: ................................................................................................................................................ 30
Weaknesses: ............................................................................................................................................ 31
Opportunities:.......................................................................................................................................... 32
Threats:.................................................................................................................................................... 32
Chapter: 03 Performance Analysis .................................................................................................................. 33
2017................................................................................................................................................................. 34
2018................................................................................................................................................................. 45
2019................................................................................................................................................................. 59
Chapter: 04 Findings, Recommendations & ................................................................................................... 70
Findings & Analysis.................................................................................................................................... 71
Recommendations ....................................................................................................................................... 72
Conclusion .................................................................................................................................................. 73
Chapter: 01
PROJECT PART
Introduction
Banking Industry is one of the most promising industries of our country. The importance of the
sector revealed through its contribution in the economic growth of the country. This sector
accelerates economic growth through mobilizing funds from surplus unit to the deficit unit.
Banking Industry is moving towards rapid changes due to technological innovation and diversified
needs of its customers. As the pace of globalization competition in banking sector is increasing
very fast. Banks are becoming more customers oriented and offer High Tech customized products
to its target market to hold the market. Our central bank always keeps monitoring banks
performances. Individual banks also need to assess their own performance to satisfy the parties
those are related to its growth.

Origin of the Report

This internship report on Mercantile Bank Ltd. is prepared to fulfill the partial requirement of the
internship program as full credit subject of the M.B.A. program of BRAC University. I have chosen
to do my internship report titled "Performance Evaluation of Eastern Bank Limited" It will
increase the knowledge to know the corporate world and will tend to apply theoretical knowledge
in the practical life.

Problem Statement

This paper will begin by putting light on the Performance evaluation of the bank and continues to
focus on overview of Eastern Bank Ltd. Therefore the intention is to find out the significant factor
of financial performance of the bank. This paper features the above mentioned elements depicted
by different graphs, tables, and charts in order to provide the reader with ease of understanding.

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Objective of the study

The objective of the study as follows:

• To present an overview of Eastern Bank Limited.
• To present the principal activities of Eastern Bank Limited.
• To evaluate the performance of Eastern Bank Limited.
• To identify the problems of Eastern Bank Limited.
• To suggest remedial measures of development of Eastern Bank Limited.

Methodology

Both primary data and secondary data will be used in this report.

Primary data sources

➢ Primary data will be gathered by Focus group meetings.
Direct observations are another important way to aid myself in learning more about the
topic.

Secondary data sources

➢ Official Website of Eastern Bank Ltd.
➢ Annual Report of Eastern Bank Ltd.
➢ Some brochures and related articles of Eastern Bank Ltd.

Scope
This study is focused on the overall performance of Eastern Bank Ltd. This includes their financial
condition, how they maintain it, and how they operate their different major business activities.
This study also covers the bank's history and performance mechanism.

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Limitations
In every program or activities, one has to face numerous constraints. The constraints that have
been during the preparation of this report are:
1. Time is a big constraint for my research. I had to go under my day to day job responsibility
that I was supposed to do so. So I could get few more time to spend in collecting data for
preparing my internship report.

2. Data insufficiency limitation is the main constraint in the development of the report.

3. This report did not include the whole financial position of Eastern Bank Ltd. it is a part.

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 Chapter: 02
Organization Part
Background of Eastern Bank Limited

The emergence of Eastern Bank Limited in the private sector is an important event in the banking
industry of Bangladesh. Eastern Bank Limited started its business as a public limited company on
August 8, 1992 with the primary objectives to carryon all kinds of banking business in and outside
Bangladesh and also with a view to safeguard the interest of the depositors ofBank of Credit
and Commerce International (BCCI).

The bank has scheduled commercial Bank under private sector established within the ambit of
Bank Company Act, 1991 and was incorporated as a Public Limited Company on August 08, 1992.
Eastern Bank Limited started commercial banking operations from August 19, 1992. A huge public
response has enabled the Bank to keep up the plan of expanding its network. Withina span of
twenty four years the bank has been able to deliver services to its customers through eighty
branches. In terms of profitability the bank has outperformed its peer banks.
As a fully licensed commercial bank, Eastern Bank Ltd. is being managed by a highly professional
and dedicated team with long experience in banking. They constantly focus on understanding and
anticipating customer needs. As the banking scenario undergoes changes so is the bank and it
repositions itself in the changed market condition.

Eastern Bank Ltd. offers all kinds of Commercial Corporate and Personal Banking services
covering all segments of society within the framework of Banking Company Act and rules and
regulations laid down by our central bank. Diversification of products and services include
Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and
real state to software.

Eastern Bank Ltd., since its beginning has attached more importance in technology integration.
In order to retain competitive edge, investment in technology is always a top agenda and under
constant focus. Keeping the network within a reasonable limit, our strategy is to serve the
customers through capacity building across multi delivery channels.

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 Corporate Vision
To become the most valuable brand in the financial services in Bangladesh creating long-lasting
value for our stakeholders and above all for the community we operate in by transforming the way
we do business and by delivering sustainable growth.

Corporate Mission

❖ We will deliver service excellence to all our customers, both internal and external.
❖ We will ensure to maximize shareholders' value.
❖ We will constantly challenge our systems, procedures and training to maintain a cohesive
and professional team in order to achieve service excellence.
❖ We will create an enabling environment and embrace a team based culture where people
will excel.

Corporate Values
❖ Service Excellence:
• We passionately drive customer delight.
• We use customer satisfaction to accelerate growth.
• We believe in change to bring in timely solution.
❖ Openness:
• We share business plan.
• We encourage two-way communications.
• We recognize achievements, celebrate results.

❖ Trust:
• We care for each other.
• We share knowledge.
• We empower our people.

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Commitment:

• We know our road-map.

• We believe in continuous improvement.
• We do our task before we are told.
❖ Integrity:
• We say what we believe in.
• We respect every relationship.
• We are against abuse of information power.

❖ Responsible Corporate Citizen:

• We are tax-abiding citizen.
• We promote protection of the environment for our children.
• We conform to all laws, rules, norms, sentiments and values of the land.

Strategic Priority

❖ Deploying flexible business strategy in facing growing challenges in order to remain on

sustained growth path.
❖ Exploring cross-selling opportunities through improved coordination and multi-skill
development.
❖ Ensuring responsible governance through conformity with the laws and by conducting all
our activities honestly, responsibly and ethically.
❖ Creating a corporate culture in which performance is rewarded equitably.
❖ Pursuing balanced growth through selective lending and by offering value proposition.
❖ Bringing the attitudes and goals of our people in line with the needs of our clients and the
overall economy.
❖ Leveraging balance sheet management through improved productivity, recovery and cost
rationalization.

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 Corporate Directory

Name of the Company: Eastern Bank Limited

Legal Form: A public limited company incorporated in Bangladesh on 08 August 1992 to carry
out all kinds of banking businesses in and outside Bangladesh. Having taken over the businesses,
assets, liabilities and losses of erstwhile Bank of Credit & Commerce International (Overseas)
Limited as per BCCI Reconstruction Scheme 1992 of Bangladesh Bank, the Bank commenced its
operations on 16 August 1992.

Ownership Composition:
Shareholding position of EBL by the Directors, General Public & Financial Institutions is
presented below:

Shareholder structure

11%
32%
Directors

57% General Public

Figure: Shareholder Structure

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 Composition of the Group EBL

Eastern Bank Limited (Group)

Bank Subsidiaries (fully owned)
Eastern Bank Limited EBL Securities Limited (Stock Dealing &
Brokerage)
Off-Shore Banking Unit EBL Investments Limited (Merchant Banking
Operations)
Yangon Representative Office EBL Asset Management Limited (Asset
management i.e. managing mutual funds)
EBL Finance (HK) Limited (First foreign
subsidiary doing trade finance and off-shore
banking business in Hong Kong)

Core Business
Over the years EBL has established itself as a leading private commercial bank in the country with
established leadership in Corporate Banking and growing focus on SME and Consumer businesses.
The Bank offers a wide range of depository, loan and card products and a variety of services to
cater virtually for every customer segment. The product basket is rich in content featuring different
types of Savings and Current Accounts, Term and Continuous Loans, Personal Loans,
Debit/Credit Cards, Internet Banking, Sky-banking, Structured Finance, Treasury & Syndication
services etc.

Network Coverage
Consumer Banking customers are served through a network of 80 Branches, 197 ATMs, 72 Bills
Pay Machines and 15 priority centers countrywide. The bank has its presence in major cities/towns
in the country SME Banking customers are served through 57 SME centers located across the
country.

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 Divisions of Eastern Bank Ltd

Businesses of the bank are broadly segmented into three divisions:

Corporate

Consumer
SME Banking

The Corporate banking division has 11 relationship units; 7 of them are stationed in suitable
business location in Dhaka and the rest 4 are in Chittagong. To facilitate and support business units
they have three product-specific solution based units i.e. Structured Finance Unit (SFU),
Transaction Banking (TB) and Product & Portfolio Support Unit (PPSU).

Transaction Banking is supported by 3 particular Units i.e. Cash Management Unit (CMU),
Trade Sales Unit (TSU) and Financial Institutions (FI) Unit. EBL Corporate Banking is
geographically centralized in Dhaka and Chittagong, but it uses nationwide EBL branches,
correspondent banks and affiliated networks worldwide to serve the large corporate banking clients
of the country.

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 Products Basket & Service Propositions

Consumer banking consists of deposits & loan products. These are describe below

Consumer Banking

Deposit Products

EBL Savings Account Term Deposit products

EBL Current Account

EBL Classic Savings EBL EBL Current Account EBL DPS Account:
Power Savings EBL Max EBL Current Plus EBL Confidence
Saver EEBBL Parevm
i iugm
EBL Millionaire Scheme
Scavco
ings
EBL Fixed Deposit:
EBL 50+ Savings
EBL Repeat EBL
EBLSmartWomen‟sSavings
50+ FD
EBL RFCD
Extra Value Fixed Deposit

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 Consumer Banking

Payroll Products Student Banking Products Loan Products

PaEyBrLolEl xPercoutivectAccount EBL Junior

EBL Executive Loan
EBL Visa Payroll Card EBL Campus Fast Cash
EBL Child Future Plan Fast Loan
EBL Student File EBL Women‟s Loan
EBL Auto Loan
EBL Home Loan
EBL Education Finance pack

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Card Products

Card Products

Credit Card Prepaid Card

Signature Acci Sheild Life style prepaid card

Signature Lite Travel prepaid card
Platinum Smart Remit Card EBL
Hajj card
Jet Airways Platinum
Army Platinum ACCA Card Robi
Women Platinum Co-Branded

Gold

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 Card Facilities

Skymiles Reward Program: A reward program bundled with a world of travel privileges.
Customers can earn miles against their card purchases on their EBL Signature & Platinum Credit
Cards.

EBL Zip: An equal monthly installment plans allowing cardholders to convert their high-volume
retail purchase transactions at partner outlets into an installment scheme without any interest.

HIPO: EMI plan for EBL credit cardholders, which can be issued from the unused balance of
credit card as Pay order, EBL to EBL Account transfer, or transfer to other bank’s Accounts
through EFTN.

Debit EMI: Debit cardholders are offered EMI facility for the first time ever in Bangladesh.
Through a linked fixed deposit with their Current Account or Savings Account can enjoy high
volume purchase at select merchant outlets and payback in installments of 3 to 12 months

EBL CAS: Consumer Authentication service aimed for securing customer’s e-commerce
transactions by authenticating customer’s identity prior to authorization process, adding a powerful
layer of protection against fraud.

EBL Acquiring: EBL is providing acquiring services to the merchants. With EBL POS,
merchants can offer acceptance of VISA and MasterCard debit, credit and prepaid cards issued
locally and globally to customers. Furthermore, EBL POS machines facilitate acceptance of both
magnetic strip and EMV chip cards.

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 NRB Products

Matribhumi is a tailor-made product and service propositions for the NRBs which includes:

NRB Products

Deposit products Loan products Investments

EBL Global EBL Personal Secured Loan Wage Earners

NFCD (FAST Loan) Development Bond (WEDB)

Personal Secured Credit US Dollar Investment Bond

EBL Shonchoy
(FAST Cash) (USDIB)

Digital Banking & Payments

SKYBANKING: SKYBANKING, a complete mobile app based banking service accessible

through smart phone or tab from anywhere anytime is designed to provide the customers with all
the basic banking services such as checking account information or credit card details, paying
utility bills, transferring fund and mobile top-up, accessing product information, priority banking,
benefit partner list, ZIP partner list, EBL location, message center, contacting EBL and many more.

Internet Banking: Distance, time or location is no longer any issue for EBL customers as EBL
offers 24 hour banking service through its Internet Banking facility. Bundled with features like
utility bill payments, instant mobile top-up, fund transfer (even in other bank accounts) and many
other banking services, EBL Internet Banking Service allows ultimate convenience to the
customers.

EBL 365: Having a nationwide network of 197 ATMs (branded as EBL 365) open for 24X7 and

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365 days a year, EBL makes its customers feel never far away from the bank.

EBL Dropbox: EBL has 72 Cash Deposit Machines (branded as EBL Dropbox) in its fleet making
it the second largest bank with the widest network of Cash Deposit Machines in the country
allowing the customers to pay bills and deposit cash & cheque, which are collected and settled
twice a day. EBL is the only local bank to offer this service.

EBL Contact Center with Phone Banking facility: Equipped with state of the art technology
and full set of IVR services, EBL Contact Centre acts as the „one stop solution‟ for various kinds
of banking services to its valued customers on 24X7X365 basis over the phone. Just a call to 16230
or 8332232 fulfills a lot of banking needs. EBL SMS Banking & SMS Alert Service EBL SMS
banking provides its customers with access to EBL products & services while SMS Alert Service
sends instant notifications to the customers‟ mobile phones for any usage of their respective
account or credit card.

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 SME Banking
SME banking consists of loan products and deposits products. These are describe below

SME Banking

Loan Products Deposit Products

Small Segment Loan Products: EBL Subidha

EBL Asha EBL Equity Builder

EBL Agrim SME Double Return
EBL Mukti EBL Repeat SME
EBL Uddog
EBL Uddom
EBL Unnoti
EBL Nobodoy
EBL Udoy
EBL Utpadon

EBL Utkorsho
EBL E Cash/Loan

Agri Business Loan Products:

EBL Krishi Rin

EBL Projukti

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 Corporate Banking

Eastern Bank Limited is the leader in offering customized corporate banking products, services
and solutions to its valued clients including large local corporate, multinational, Development
organizations, Financial Institutions, Non-bank Financial Institutions and public corporations. We
serve more than 2,000 clients- including many of the industry leaders- through our dedicated
relationship teams, industry specialists and product experts. EBL Corporate Banking is committed
to deliver the full spectrum of banking solutions, from simple transactional productsto complex
structured finance that eventually helps the customer to achieve their financial goal.

Cash Management Solutions

These solutions aim at managing client‟s business liquidity effectively and efficiently through
extending extensive range of products and services. Some common deposit products like Current
Deposit, Short Notice Deposit, Fixed Deposit, High Performance Account etc are offered to
corporate customers.

I. Nationwide Collection Services (NCS): Nationwide Collection Services (NCS) is

formulated to facilitate collecting daily funds through EBL own branch network and
corresponding bank network and crediting the same to the single collection account
maintained with EBL which will facilitate large corporate by providing faster funds
availability in a cost-effective manner.

II. Payment Transfer Services (PTS): Eastern Bank‟s Payment Transfer Service (PTS) is
formulated to facilitate organizations to transfer funds to their respective Branch Offices
through EBL own branches and also through Bangladesh Electronic Fund Transfer
Network (BEFTN) across the country which facilitates the corporate clients by providing
faster fund transfer solution in a cost-effective manner.

III. EBL Cheq Pro: EBL Cheq Pro is very user-friendly software which facilitates the
preparation, printing, recording and reconciliation of Eastern Bank Limited cheques and
generates different kinds of MIS.

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IV. Cash Pick-up & Delivery Service: Cash Pick-up & Delivery Service is designed for cash
pick-up from the designated EBL branch and to be delivered in the office premisesof the
client and the service provided through enlisted security company of the Bank.

Working Capital Solutions

Provides flexible financing to smooth and improve cash flow, full range of Working Capital
products can help customers to meet day-to-day financial obligations and fund business growth.
Working capital solutions comprises full range of Trade solutions. Trade solution is designed to
enhance trading status and to help achieving client‟s domestic and international trade objectives:

I. Funded Facilities
➢ Import Loan: Post import facility against L/C.
➢ Demand Loan: To meet cash requirement from time to time (local purchase/duty/tax etc)
➢ Manufacturers Demand Loan: Facilitating the manufacturers with low cost working
capital Loan.
➢ Overdraft: To meet day to day overhead expenses.
➢ Time Loan: To meet short term requirement/ post import against Machinery LC etc.
➢ Packing Credit: To meet fund requirement of the exporters to make export items.
➢ Local Documentary Bill Purchased (LDBP): To purchase/ discount against Local L/C.
➢ Foreign Documentary Bill Purchased (FDBP): To purchase/ discount/negotiate export
documents against Sight/ Usance Export L/C.
➢ EDF Loan: To finance LC under Export Development Fund.
II. Non Funded Facilities:
Letter of Credit (Cash/Back to Back):

➢ Sight LC: To import locally/from abroad on sight basis.

➢ Usance/ Deferred LC: To import locally/ from abroad on usance/deferred basis.
➢ Structured LC/OBU: Usance LC with sight payment arrangement to beneficiary after
shipment by EBL Offshore Banking Unit or correspondent Bank.
Guarantee (Open Ended/close Ended):
➢ Performance Guarantee
➢ Bid Bond
➢ Advance payment Guarantee
➢ Retention Bond
➢ Security Bond

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 Treasury Products

Treasury Products

Money Market Products Fixed Income & Investment Foreign Exchange

Call Money T-Bond to Inter-Bank Spot in Major Currency pair

Term Money T-Bond for foreign Forward contract
Re-purchase Agreement individual investors & Interest rate swap (IRS)
(Repo) Institutions
Reverse Repo
Commercial Paper
Foreign Exchange Swap
Treasury Bill to Inter-Bank

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 SWOT analysis of Eastern Bank Ltd
A SWOT analysis is “a technique for matching organizational strengths and weaknesses with
environmental opportunities and threats to determine the organization’s right niche”. SWOT
analysis is an important tool for evaluating the company’s Strengths, Weaknesses, Opportunities
and Threats. It helps the organization to identify how to evaluate its performance and scan the
macro environment, which in turn would help organization to navigate in the turbulent ocean of
competition. With this tool, we will be able to determine, though not perfectly, since we are not
internal members of this organization, the internal strengths and weaknesses of EBL as well as
the opportunities and challenges that the changing external environment provides.

Strength Weakness

SWOT

Oppurtunity Thread

Strengths:
➢ Eastern Bank has a strong financial back-up on the industry. Ample source of finance
means it is in a better position to serve the market with its products & also it has the
financial resources to grow its business.
➢ Eastern Bank Limited is providing diversified product and services to the market.
➢ It has a huge manpower and network all over the Bangladesh that helps Eastern Bank to
knock at the door of some customers which were out of banking touch.
➢ Launched Own managed Cards Software and Production System.
➢ Awarded „Super brand‟ by super brands Inc. for the period 2009-2011

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Weaknesses:

➢ •Lack of Bank Branches and ATM Booths.

➢ Higher interest than some other commercial private bank in Bangladesh is another weak
point of Eastern Bank Ltd.

➢ Lack of Capital.

➢ Lower growth rate.

Opportunities:
➢ Emerging economies.

➢ The credit Card Sector

Threats:

➢ Rival Banks are growing faster

➢ The existing software is not that much capable to catch the run according to its position

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 Chapter: 03
Performance Analysis
2017

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2018

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2019

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 Chapter: 04
Findings, Recommendations &
Conclusion
 Findings & Analysis

In terms of financial state, it is difficult to get the exact picture of the company as the banks are
established in different times and are well performing in different sector. The financial data are
important to judge a company’s overall performance therefore here the following concluding
statements are assumptions of how the picture might be. This comparison is very limited in nature
as few important financial details have been focused.

We see that Eastern Bank Ltd has BDT 12,000 million authorized capital though City Bank Ltd
has highest authorized capital in 2015 among three banks. Regarding investment Eastern Bankltd
has 2nd highest amount in 2015.

Profitability shows a company's overall efficiency and performance. In recent year BRAC Bank
has highest operating profit in compare to all three banks. EBL has lower operating profit which
means that bank’s core business is less profitable than others bank. Eastern Bank Ltd paid
highest dividend among three banks in recent years. This bank has lowest no of branches and ATM
booths but highest bills payment machine.

If we look only Eastern Bank Ltd‟ FY- 2015 the ROA and ROE is lower rather than previous years
that means bank did not earn more money on its assets and could not offer a profitable investment
to the equity holders. The cost to income ratio also high that means the bank did not efficiently run
the business. The EBL shareholders‟ earned 3.63 taka per share which is lower than previous
period except 2014.

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 Recommendations

▪ There are a lot of banks now in Bangladesh and customers now have lots of options. So a bank
should do everything possible for them to do to retain its customers.

▪ In the branches of EBL there should be more number of service stations for withdrawing and
depositing money so that it reduces the customer waiting time.

▪ There should be more efficient capital management and investment analysts appointed so that
idle money does not remain in the bank.

▪ They should frequently keep their conscious observation to monitor that the ATM machines in
all the booths are usable and adequate cash is there.

▪ They should increase their ATM booths substantially in order to compete with its competitors.

▪ EBL should increase the space in the branch offices as their client size is increasing day by day
and also introduce new branches in various places of the country for expansion.

▪ In order to remain as the market leading company they should emphasize much on retain the
existing customer base and also should try to attract new customers.

▪ Some customers said that the service charges of Eastern Bank Ltd are comparatively higher
than other bank so it should be reduced if possible. Otherwise it can be a threat forthe bank
in future.

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 Conclusion

Eastern Bank is one of the pioneer p private ate banks in the country. It is one of the front line
banks due to its specialized and sophisticated banking services rendered to its customers. In order
to remain competitive in the market it constantly looks for ways and means to improve
productivity. Use of information technology remains its mainstay. EBL is playing significant role
in various field of economy such as industry, agriculture, trade and commerce, transportation and
many other fields. It is playing a crucial role in human resource development and in creating
new employment opportunities. It is also undertaking various welfare activities for the betterment
of the society.

According to the study the performance of this bank is satisfactory. In this study to evaluate the
financial performance of this bank various financial parameters were considered and Eastern Bank
was found as a fast-growing bank and simultaneously performing well in almost all the areas. To
keep with this pace of growth and improvement they now should more vigilant on what their
customers want and should be more vigilant while giving loans to the clients in order to reduce the
defaulter rate.

The reliability of the customers on EBL is increased promptly day by day. In EBL all the staffs are
performing sands serving the customers untiringly. EBL keeps itself busy to serve thesociety, to
improve the lifestyle of the people, to develop the business environment.

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