Report on Law and Practice of Banking- A Study on Performance Evaluation of Prime Bank Ltd

We have prepared a report based on the performance evaluation of Prime Bank Limited. The objective of our report was to study the process of performance evaluation of a bank. For preparing the report we have selected PBL as our bank. 
PBL is one of the leading private commercial bank in Bangladesh. It was established on 17th April 1995. It is a bank with a difference. The core philosophy of the bank is customers’ satisfaction. Their prime objective is to deliver a quality that demonstrates a true reflection of their difference in banking. 
In the report at first we have given a short profile of the PBL which includes background, objectives, structure, vision, mission, strategy, branches and so on. Secondly, the report represents the products and services of PBL. Products offered by the PBL are deposit scheme, loan scheme and Islamic Banking. Services that PBL offers are consumer credit scheme, master card, one stop utility services scheme, online banking service etc. Next we have analyzed its risk management process. The major areas of risk are credit risk, liquidity risk, market risk, operation risk and reputation risk. Market risks include foreign exchange risk, interest rate risk & equity risk. We have also mentioned capital management of PBL. 

Then comes the most important portion of our report ‘Performance Evaluation of PBL’. In this portion we have given that financial statements of the year ended 2007. To clear the view we have added balance sheet, profit and loss account, cash flow statement, statement of changes in equity, analysis of income statement. Next for convenience we have provided the performance of PBL at a glance. At last we have prepared the ratio analysis from the collected financial data and thus we come to an end of the report with a conclusion. 

Prime Bank Limited is one of the leading private commercial banks in Bangladesh. It has spread its services through almost 37 branches with a mission to be the premier financial institutions in the country providing high quality products and services backed by latest technology and team of highly motivated personnel to deliver excellence in banking. Prime Bank is a bank with a difference. The core philosophy of the bank is customer service. Results were achieved due to the continuous focus on customer service. Providing the quality service was the responsibility of stuff. Uniformity of action was maintained at all level. The direct interactions with customers helped to nurture and cement the bank’s relationship. The service delivery performances of the branches were closely monitored. In order to provide full support and high quality service, a compliant cell has been formed and will remain functional to address customer’s issues with priority. Bank draws their inspiration from the distant stars. The Bank’s team is committed to assure a standard that makes every banking operation a gratifying experience. Their effort is to offer the customers razor sharp sparkle through accuracy, reliability, timely delivery, cutting edge technology and tailored solution for business needs, global reach in trade and commerce and high yield on their investments. Their employees, products and processes are aligned to meet the demand of the Bank’s discerning customers. Their goal is to achieve a distinction like the luminaries in the sky. Their prime objective is to deliver a quality that demonstrates a true reflection of their differences in banking. 

Prime 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. Our past performance gives an indication of our strength. We are better placed and poised to take our customers through fast changing times and enable them compete more effectively in the market they operate.

The present day banking structure has evolved over several decades. The far-triumph program of economic reform is being carried out at present towards efficient deployment of scarce resources and the development of private entrepreneurship. In a fast changing business environment, financial peacekeeping troops are gradually being left to be guided by market forces rather than regulation. Competition is strengthened by the entry of new and groundbreaking providers of financial services through the development of Money Market and Capital Market. Under the enduring financial liberalization program, Prime Bank Limited emerges as a bank in private sector to operate in the commercial arena of Bangladesh.

Prime Bank Limited was established on 17th April 1995. It is a full licensed scheduled Commercial Bank set up in the private sector in pursuance of the policy of the Government to liberalize Banking and Financial services. The Bank has made significant progress within a very short period owing to its competent Board of Directors, dynamic Management and introduction of various customer friendly deposit and loan schemes. PBL achieved to be one of the A- grade banks in the year 1997 as per CAMEL (Capital, Asset, Management, Earnings and liquidity) rating according to Bangladesh Bank.
Structure of PBL : 

Prime bank limited was time-honored with an authorized capital of Tk.4000 million, and paid up capital stood at Tk. 100.00 million as on December 31, 2004. The bank has consistently turned over good returns on assets and capital. During the year 2004, the bank has posted an operating profit of Tk.1146.14 million and its capital funds stood at Tk.2239.80 million. Out of this, Tk.1000 million consists of paid up capital by shareholders and Tk. 2239.80 million represents reserves and retained earnings. The bank current capital adequacy ratio of 10.74% is highest in the market. The bank is manned and managed by experienced officers committed to provide a highly proficient, tailored and quality service. The bank has a good number of professional managers for nimble and effective handling of competitive and complex situation.

Objectives of PBL: 
Prime bank limited main objective is to maximize profit through customer satisfaction, which very much reflexes the idea of marketing concept. Its objective is to remain competitive. The bank will support all constructive reforms that are in the national interest and encourage more competition and choice for the people. Besides investment in trade and commerce, the bank will participate in the socio-economic development of the priority sectors like agriculture, industry, housing and self-employment in the country. It also wants to ensure high return on investment, sound growth and profit and service with different service products.

Bank’s Vision :
To be the best private commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity. 

Bank’s Mission : 
To build Prime Bank Limited into an efficient, market driven, customer focused institution with good corporate governance structure. 
Continuous improvement in our business policies, procedure and efficiency through integration of technology at all levels.

PBL has consistently remained focused on efficient customer service by providing wide range of products and services. Its products and services are as diverse as the market segments demand. Its customer group range from individuals, big corporate clients, NGOs to Non residents. Financing to, NGOs were done for extending micro finance to cover less', privileged people who are struggling to fight poverty. PBL will also focus on its delivery platform, its people and its brand to support the growth. PBL will focus more on off balance sheet services for the clients by enhancing the cash management and other advisory services through its state of art IT platform. Improvement in mix of deposits by developing more retail savings products remained in its policy objective and shall continue to remain so in 2008 as well. It will try to remain ahead of the peer group bench mark. PBL's core value to remain socially responsible corporate citizen will remain integral part to its strategy and communicating them to all stakeholders is intrinsic to the plan.