Assignment on Swot Analysis of IBBL
Subject: Economics | Topics:

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.

IBBL

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

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 BranchAchieved

2003

Target for

2004

Achieved

2004

%of achieved

over target

Target for

2005

Corporate  Branch :
01Local1002514536128478817986
02F. Exchange332848264585956419
03Nowabpur362952623774725284
04Head Office1039156022071413090
Sub Total1802126184234138932778
Zonal  Branch :
01Dhaka South896213675111698216083
02Dhaka North12532301782341571
03Chittagong81711191393387813429
04Bogra Zone47796930736510610317
05KhulnaZone44756606746011310891
06Comilla Zone576676277411016
Sub Total2821642101363918653307
Grand Total4623768285598048886085

EXPORT:

SL No.Name of BranchAchieved

2003

Target for

2004

Achieved

2004

%of achieved

over target

Target for

2005

Corporate  Branch :
01Local1312418374162008822683
02F. Exchange2054287530281054239
03Nowabpur560784769981077
04Head Office228330709215993
Sub Total15116622363207089328991
Zonal  Branch :
01Dhaka South476470636848979587
02Dhaka North19360436360508
03Chittagong571950860911204
04Bogra Zone9927619470272
05KhulnaZone14530317859249
06Comilla Zone—–50—–—-—-
Sub Total5772924684439111820
Grand Total2173830609291519240811

REMITTANCE:

SL No.Name of BranchAchieved

2003

Target for

2004

Achieved

2004

%of achieved

over target

Target for

2005

Corporate  Branch :
01Local548282345019617278
02F. Exchange232348356102516
03Nowabpur5887394557
04Head Office33051238074551
Sub Total610991815794638401
Zonal  Branch :
01Dhaka South1594240426521103850
02Dhaka North1737261731731214604
03Chittagong156423602068883011
04Bogra Zone4847309451281389
05KhulnaZone5348259941201451
06Comilla Zone46467003804311511684
Sub Total10559159451187511225990
Grand Total1666825126236699434391

TOTAL :

SL No.

Name of Branch

Achieved

2003

Target for

2004

Achieved

2004

%of achieved

over target

Target for

2005

Corporate  Branch :
01Local2863841144340688347946
02F. Exchange5614804979699911174
03Nowabpur424761334582756417
04Head Office1597240232961374633
Sub Total4009857728499158670171
Zonal  Branch :
01Dhaka South1532023142206698929521
02Dhaka North318355224318786684
03Chittagong1030615223122668117645
04Bogra Zone53627942850410711977
05KhulnaZone51547734863211212591
06Comilla Zone52227729832010812700
Sub Total9454767292627099391117
Grand Total8464312502011262490161287

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

Amount

% of  Total Amount

Amount

% of  Total Amount

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

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

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.

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