Internship Report on Investment Analysis of Bangladesh Commerce Bank Ltd

Investment is a prime activity for a commercial bank that makes a major contribution for generating profit. It helps to develop the economy of a country. It also plays a very important role to develop the private sector. The present condition of investment, their portfolio of investment and earnings from the investment is the major focus of the studies. I prepare this report as educational supportive way with the proper dimensional method. To prepare this report I analyze the financial statement of Bangladesh Commerce Bank Limited (BCBL) and try to show the present condition of investment of the bank and also try to show how effectively use their funds. I tried to avoid exaggerate description and redundant information to make my report as neutral and free from unnecessary mistakes. I actually analyze the whole report with qualitative and quantitative view through the theoretical and some statistical analysis with graphical presentation. Through the analysis I found some critical points about BCBL which can make this bank turn into serious problem in future. For this analysis I tried to analyze the insolvency probability of the bank through Altaman Z – Score analysis. In whole report I tried to show the overall scenario of investment of BCBL. Though it is not a professional report because of its some limitations but as a unique report it consist some individual characteristics which make it as a lucrative one.

Commercial banks are traditionally known as lending institutions. Making loans to business houses and industrial enterprises has been their popular activity. But recently banks have departed considerably from their popular activity by making finances to speculators and dealers in securities, to consumes, to real estate businesses and so on. In the recent time modern banking system plays a vital role for a nation’s economic development. Over the last few years the banking world has been undergoing a lot of changes due to deregulation, technological innovations, globalization etc. These changes in the banking system also brought revolutionary changes in a country’s economy. Commercial banks foster the financial sector of a country. It’s actually helps to the flow of money supply in the economy. One of the most important functions of commercial bank is investment. When commercial banks invest in private sector then the success of financial sector is hastened. So it is very important for national economy. Investment is one of the main profit earning sectors of commercial bank. By investing in private sectors commercial banks earn huge profit. Investment activities of a commercial bank contribute much more to earn profit rather than the other sources of income. As a fully licensed commercial bank Bangladesh Commerce Bank Limited (BCBL) 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. BCBL has already made significant progress within a very short period of its existence. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation. They are trying to invest on different sector in Bangladesh that is needed to develop.

1.2 Objectives of the Study
This report is prepared based on objectives are furnished bellow-
· To familiar with different investment policy of the bank
· To examine current investment condition of the bank
· To measure the performance of the bank based on investments from 2006 to 2010
· To know the present investment portfolio of the bank
· To explore the strength and weakness of the bank
· To explore the default probability of the bank
· To find out problems that faced by the bank in making investment in a more effective manner
· To suggest some probable solution of problems those are faced by the bank

1.3 Methodology
1.3.1 Sources of Data:
This report has been performed with the help of primary and secondary sources of data. This is basically an analytical report where an attempt has been made to evaluate the performance of the bank based on investment and to find out problems and risk factors of investment of the bank. The information has been collected from both sources-

§ Primary Data Collection
Primary sources of data have been collected through different designated officials of BCBL.
§ Secondary Data Collection
The sources of secondary data are as follows-
· Annual report of the bank.
· Website of the bank.
· Different news paper, journals and magazines
1.3.2 Methods of Data Analysis:
The report used both the qualitative and quantitative approaches to analyze data. The quantitative approach includes different statistical tables and graphs. Some other techniques are used to analyze the repot are as follows-
· Tabular Analysis
· Graphical Presentation
· Trend Analysis
· Index Analysis
· Ratio Analysis (key ratios related to investment)
· SWOT Analysis
· Multiple Regression Analysis
· Altaman Z – Score Analysis

1.4 Scope of the Study
The report covers the investment operations of BCBL. Completing this report, the information has been collected from the personal contact with different designated officials of the bank and that give me an opportunity to gather experience by working in the practical arena with my limited theoretical knowledge and expertise. The area of concentration of this report is about the analysis of the investment of the bank and tries to present theoretical analysis and graphical analysis. In this topic there is a huge scope of using important tools of statistics to evaluate the current condition and the future prospects of investment for BCBL.

1.5 Limitations of the Study
· Data insufficiency limitation is the main constraint in the development of the report.
· Time constraints are another important limitation of the report.
· As I am a not an employee of BCBL, some data could not be collected due to internal security of the bank.
. This report did not include the whole financial position of BCBL, actually more focused on investment of the bank.
Though there have some limitations, I have put all my effort to make it a successful one.