Defense Queston 1

What is your Findings?
1. In 2022, JBL has earned only 9.27% net profit after tax of its net profit after tax in 2021.
2. JBL’s net interest margin has been increasing since the beginning of working years. It has earned
almost double NIM in 2022 than 2021.
3. Both total asset as well as net asset and shareholders’ fund of JBL has been increasing throughout
the working years. JBL maintains an increasing level of regulatory capital and an average CRAR
in all the working years.
4. JBL’s total revenue is decreasing over the years while its total expenses is increasing. In 2018,
JBL has faced a negative growth of 0.45% in total revenue to total expenses ratio.
5. But JBL’s earning from loans and advances has a positive growth of 10.73%. JBL’s amount of
non-performing loan has been doubled in 2022 than that of 2021.
6. In 2022, JBL’s NPL was 33.72 of its total loan and advances while it was 16.74% in 2021. In
2022, JBL has failed to maintain positive current asset.
7. JBL’s lack of management’s efficiency is disclosed through its tend to decline in profitability
ratios. Its operating profit has been declining from the beginning of working years while its
operating cost has been increasing Besides, its return on average asset, Return On Asset (ROA)
and Return On Equity (ROE), all these are declining year by year.
8. These have faced a sharp fall in 2022. In this recent year, ROA of JBL was only 0.03% while its
immediate ROA was 0.33%. In 2022, JBL’s ROE was 0.46% while in 2021, its ROE was 5.23%.
9. In trend analysis, JBL’s increasing trend of total property and asset, liabilities and shareholders’
equity have been seen in balance sheet. But in income statement, I have found that the total
operating income of JBL has been decreased while its total operating expenses has been
increased.
10. In addition to, total provision for NPL has been increased by a large amount. This has
affected net profit after tax of JBL by decreasing in a large amount. For this reason, EPS and
dividend cover ratio have decreased by a large amount.
11. Average net profit margin of JBL is far better than ABL. JBL’s better financial
performances reflects through its higher amount of ROE, ROA and ROI than that of other two
renowned nationalized bank, SBL and ABL.
12. JBL has taken riskier investment policies shown through its liquidity rating analysis. It
has higher amount of average loan to deposit ratio and earning asset to deposit than that of SBL
and ABL.
13. In regression analysis, it has been found that disbursement of loan and advances, growth
of CRAR and GDP growth of the country increase the growth ROE.
14. Though there is negative correlation between ROE and L&A, increasing trend of
disbursement on loans and advances increases the growth of ROE. On the contrary, increasing
trend of Non-Performing Loan and number of branches of JBL decreases its growth of ROE.
What is your Recommendations ?
1. The amount of non-performing loans held by JBL saw a significant surge in 2022. Therefore,
in order to implement new strategies and concessions, JBL must revitalise its debtors.
Classified loan rates should fall into the single digits as a result of collecting payments from
rescheduled and restructured loans,.
2. Subsequently, JBL ought to put its money into the thrust sector, which encompasses SMEs,
infrastructure, LPG, and electricity. In addition, JBL has to cut back on its propensity to
make big loans and ramp up its involvement in the SME sector.
3. If JBL wants to keep up with the rest of the contemporary banking business, it needs to get
its corporate governance, accountability, and transparency in check.
4. To increase the amount of net profit after tax, JBL should give the highest importance in the
Bank’s internal audit and system audit.
5. Training JBL's officers on a national and worldwide scale will make them more capable,
which will allow the company to cut costs per employee and boost profits per employee.
6. It would be in JBL's best interest to expedite automation by providing online banking to all
of its branches if the company wishes to increase their net profit per branch. They may then
provide their consumers with greater service as a result.
7. JBL’s cost of fund has been increased throughout the working years. So it should optimize
the funding mix to reduce the cost of fund.
8. Traditional banking system is one of the main reason of decreasing level of profitability. JBL
should integrate green banking into banking activities.
9. A greater loan-to-asset ratio is observed at JBL. In order to reduce potential dangers, the
company has to improve its risk management strategies.
10. JBL should be more concerned about their recovery performance of non-performing loan to
be more efficient about earning ROE.
Taking these measures gives me faith that Janata Bank Limited can triumph over its obstacles
and keep making strides in the next fiscal years.
What is your Conclusions?
1. Janata Bank started its journey in 1971 with a capital of only Taka 1,600 million.
2. It now stands at over Taka 860,000 million.
3. Since its inception, Janata Bank Limited, state-owned commercial Bank has been one of
the leading partner of progress of the Nation.
4. Bangladesh has made huge progress in the last decade in all spheres of nationhood and
the economy has made remarkable achievements.
5. Building on the achievements is imperative to secure the gains. The role of this Bank is
critical in providing leadership as it has played a significant role in the growth and
development of Bangladesh Industry and private sector. 2018, JBL earned 9,788.96
million Taka as operating profit, which is less than that of the previous year.
6. With increasing operational efficiency expected deposit mix through low-cost deposit
collection, interest expense decline, growth in loans and advance, various services-
backed non interest income growth, non-funded income and investment in
comparatively more profitable sectors, the earned profit is certainly positive in the current
context.
7. Janata Bank Limited’s total deposit, total loans and advances increased by 4.02% and
16.13% respectively and stood at 675,550 million and Taka 533,710 million respectively
in 2018. Advance-Deposit Ratio (ADR) is increased to 79%.
8. Janata Bank Limited disbursed 24% of total credit in SME sector as per Government
Industrial Policy. Janata Bank Limited’s Import, Export and Foreign Remittance stood at
Taka 220,410 million, Taka 114,680 million and Taka 76,080 million respectively. Janata
Bank Ltd. Works for the welfare of the people of Bangladesh.
As part of a Corporate Social Responsibility (CSR), it is playing a remarkable role to help the
distressed people of the society in different welfare related activities. It focuses on dignified,
prompt and personalized services being rendered to their customers. Bangladesh.

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