Performance Dynamics of an Industrial Enterprise in Bangladesh1

Presented By

Md. Zabed HussainID: 3-09-15-019

MBA Program, Summer 2012EM:530: Strategic Management

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ONE Bank Limited was incorporated in May, 1999 With the Registrar of Joint Stock Companies under the Companies Act. 1994, as a commercial bank in the private sector.

The Bank is pledge-bound to serve the customers and the community with utmost dedication. The prime focus is on efficiency, transparency, precision and motivation with the spirit and conviction to excel as ONE Bank in both value and image.

The name 'ONE Bank' is derived from the insight and long nourished feelings of the promoters to reach out to the people of all walks of life and progress together towards prosperity in a spirit of oneness.

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OBL is a private sector commercial bank dedicated in the business line of taking deposits from public through its various saving schemes and lending the fund in various sectors at a higher margin.

The banks financing concentrate in both, working capital finance and long-term finance. OBL has major concentration of financing in medium and large industries. Since the short-term finance carries low risk compared to long-term finance; the financing strategy of OBL will assist the bank to keep the risk at minimal.

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Products and Services:

i. Retail Bankingii. Institutional Banking iii. Corporate Banking iv. Commercial Banking v. On-Line Banking vi. Merchant Banking Advisory Services vii. Capital Market Operation viii. Islamic Banking Services ix. Credit to Women Entrepreneurs x. Consumer Credit Facility xi. Counter for Payment of Bills xii. Other Services

Contd……

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The consumers, corporate houses, farms, semi-government and government organizations etc. are the target market of banking industry of the country. Therefore, One Bank Limited is highly confident that the demand for banking in Bangladesh will continue to increase significantly in the foreseeable future.

As reported in the media, the operating profit of the country's private commercial banks (PCBs) was estimated to have grown by Taka 5.0 billion during the year 2004, which translates to 28.63 Percent growth for the industry over the previous year. Therefore, the growth in percentage terms for ONE Bank has been three & half times the average industry growth. This achievement in a very competitive industry is something that makes the bankers very proud.

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Particulars

YearGrowth

Rate2006 2007 2008 2009 2010

Total Deposits 7607 8847 10915 18030 20253 21.63%

Total Loans & Advances 5126 6051 9613 13851 15681 25.06%

Total Income 968 1061 1433 2007 2886 24.42%

Net Profit 114 91 195 302 347 24.93%

Productivity

(Net Profit per Employee)0.6404 0.4354 0.6500 0.7824 0.5983 -1.35%

Productivity

(Deposit per Employee)42.73 42.33 36.38 46.71 34.92 -3.95%

Productivity

(Loans & Advances per Employee)28.79 28.95 32.04 51.43 27.04 -1.25%

Productivity

(Total Income per Employee)5.44 5.08 4.77 5.20 4.97 -1.79%

Deposits of the Bank Loans and Advances of the Bank Net profit of the Bank Number of branches of the Bank Number of the employees of the Bank Earning per share of the Bank

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Strengths Satisfactory Capital Adequacy Satisfactory business growth Experienced top management Diversified product lines Satisfactory asset qualityWeaknesses Decreasing market share Deposit growth is less than Peer and industry growth Does not have own training institute Dependency on term deposit

Opportunities Investment in SME and Agro based Industry. MIS in continuous development process. Basel-II compliance for capital adequacy.Threats Increasing cost of fund. Increased competition in the market.

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The loan sanctioning process should be easier so that the customer can feel convenient to take loan from the bank.

The Bank authority should lay emphasis on the quality of service.

The Bank should hunt low cost deposit from the depositor to provide borrowing customers lower of rate.

The Bank should train its all officers and executives to provide quick and quality service to the customers.

The Bank needs to set up more branches in different commercial area of Dhaka, Chittagong and other towns to make a good network all over the country.

The Bank needs to introduce more promotional programs to promote its producers and services to the people.

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ONE Bank could maintain steady performance measured in terms of key indicators. After analyzing all available data it was observed ONE Bank is in better position in all respects

Despite hard competition among banks operating in Bangladesh, both local and international, ONE Bank has made tremendous and remarkable progress practically in every sphere of its activities. The Bank is maintaining its position as one of the leading new generation private Banks in the country both in terms of capital base and good governess.

There are, however, a number of areas where ONE Bank needs to lay emphasis in order to sustain steady growth rate. 10