History Overview................................................................................................................................................ 5
PEST ANALYSIS....................................................................................................................................... 13
BOSTON CONSULTANT GROUP MATRIX (BCG) MODEL..................................................................18Star:.......................................................................................................................................................................18Cash Cow:..............................................................................................................................................................18Question Mark:.....................................................................................................................................................18Dog:.......................................................................................................................................................................19
Rawalpindi, Sukkur, Sialkot, Multan, Murree, and Attock District etc.
Since its inception, as the new identity of H.C.E.B after the privatization in 1997, the
management of the bank has implemented strategies and policies to carve a distinct
position for the bank in the market place. Strengthened with the banking of the Abu
Dhabi Group and driven by the strategic goals set out by its board of management, the
Bank has invested in revolutionary technology to have an extensive range of products
and services.
The portfolio concentrates on all aspects of conventional banking as well as the financial
needs of corporate sector. Dynamic and high value product includes Car Financing,
Home Financing, Rupee Travelers Cheques, Credits Cards, Debit Cards, On line Banking,
ATM and consumer Durables. In addition to this, Islamic Banking Division is a recent
initiative, which operates as separate branch. It offers Shariah Compliant products
through a network of five branches, which will increase to 50 by the year 2007. The
bank is committed to combine all its energies and resources to bring high value, security
and satisfaction to its customers, employees and shareholder. The Bank has invested in
revolutionary technology to have an extensive range of products and services. This
facilitates commitment to a culture of innovation and seeks out synergies with client
and service providers to ensure uninterrupted services to it customers.
P R O D U C T S
COMPREHENSIVE AND DIVERSIFIED PRODUCT PORTFOLIOWith the mission to provide all-encompassing banking services to the customers, Bank
Alfalah has a uniquely defined menu of financial products. Currently it is one of the most comprehensive portfolios of personalized financial solutions that are custom-tailored to serve the requirements not only of conventional customers but also fulfill the needs of the corporate sector:
Car Financing Rupee Travelers Cheques Online Banking Credit Cards ATMs Home Financing Islamic Banking Corporate and Structured Financing
Car FinancingCar Financing is one of the major renowned products of Bank Alfalah and can be utilized in terms of Financing of Used Vehicles, Loan against Car, Balance Transfer Facility, Refinancing Facility (only for Alfalah Customers) and it is characterized in terms of:
Lowest Mark up Lower Insurance Quick Processing Lower Down Payment
Home FinancingMajor features of Bank Alfalah Home Financing are Lowest Mark-up, Quick Processing,
Multiple Repayment Options and Free Valuation. It has been bifurcated in terms of “Home Buyer, Home Construct, Home Improver, and Home Balance Transfer Facility”.
Financing Limit : up to Rs. 10,000,000/- Tenure : up to 20Years Equity Participation : 30% Borrower / 70% Bank
Rupee Travelers ChequesRupees Travelers Cheques are as good as cash and are accepted at the major shops,
travel agents, hotels business establishments and all over the country and abroad. This service is being offered to facilitate instant fund availability to travelers and business people who used to carry a large sum of money with them.
Credits CardsBank Alfalah Visa Card is everywhere and globally accepted and welcomed at locations
displaying the VISA logo. It is accepted at nearly 30 million merchants and 870,000 ATMs in
more than 150 countries around the globe and over 10,000 establishments in Pakistan. Alfalah VISA pays for shopping, travel, entertainment, meals and much more.
Debit CardsBank Alfalah Limited presents Alfalah Hilal Card, the first Visa Electron International
Debit Card which gives an unlimited access to current / savings account with a simple swipe, at millions of retail shops and ATMs, worldwide. The Alfalah Hill Card comes with a host of conveniences and benefits combined with the wide reach of Visa Network enabling it to be accepted at more than 840,000 ATMs and 13 million retail outlets around the world, making it the most acceptable Debit Card available in Pakistan.
On Line BankingTo provide enhanced and value added products to customer bank is constantly striving
for additional facilities. Bank provide fully automated on-line telephone banking facilities to its customers enabling them to carry out banking transactions like balance inquiries, statement requests, product information and exchange rate.
Automated Teller Machine (ATM)The bank offers 24 hours self service banking facilities to it customers on country wide
basis through deployment of Automated Teller Machine. This system allows the banking facilities such as cash withdrawals, cash deposits, and funds transfer, balance inquiries, account statements. Electronic cash dispensing facilities are available in major cities of Pakistan. All ATMs are linked through a state-of-the-art Satellite Based Communication System which offers 24 hours real time service.
Islamic BankingA separate division is a recently initiated, which operates as separate branch. It offers
Shariah Compliant products through a network of five branches, which will increase to 50 by the year 2007. Islamic Banking has launched following products with the perception that these are in accordance with the Sharia Principles.
Alfalah Masharaka Homes Murabaha Finance Alfalah Car Ijarah
Corporate and Structured Financing The portfolio concentrates on all aspects of conventional banking as well as the financial
needs of corporate sector including dynamic and high value product. Loaning against securities Letter of Credit Letter of Guarantee Demand Finance Cash Finance
SWOT Analysis
This SWOT analysis of Bank Alfalah Limited takes into consideration the external as well
as the internal environmental structure of the bank.
Strength
Bank Alfalah is considered to be a very successful bank in the financial circles. A bank is
place where the customers can safely keep their money as long as they want. Some of
the major strengths of the bank:
Brand Name
Goodwill and trust
Islamic Banking
Car Ijarah revenues
Least Processing Time
On-Line banking
Comprehensive and diversified product portfolio
Bad debt rate is low
Excellent credit rating
Phenomenal Growth
Highly Professional and trained employees
Crucial Location Of Branches
Bank is financially strong and has a huge deposit reserve
Bank Alfalah has a wide network of branches at the ideal locations, catering
the financial needs of its clients.
Foreign Trade is the focus of bank. It has become an ideal bank for the
importers and exporters.
Weaknesses
Bank Alfalah also has some weaknesses. But their number is much less than the
strengths of the bank. Following factors need attention of the management.
Lack of advertisement through electronic media
Lack of innovative marketing
No ATM Machine
Islamic Banking
Skill Set of Employees is not up to mark as there is no job rotation.
Foreign Banks still are a little more prestigious
Bank Alfalah Limited does not possess foreign network
Most of the employees are overloaded with work. There is uneven
distribution of work and promotions are not very timely
It is slow in the introduction of new services
Employees feel over burdened
It has only one oversea branch although it does a lot of foreign trade
business.
Opportunities
Bank Alfalah has grown up its business with a very high pace and it has got tremendous
popularity, even with in a very short span of time. There are many opportunities for the
bank and by availing that it can stand amongst the top foreign banks.
Extension of International network.
Capitalizing on IT
Introduction of innovative products.
Adopt E-banking
Growth in deposits
Growth in textile sector
Tide down of money
Expansion in branch network
Threats
Political Instability
New branches in the same location
Islamic Competition
Increase in Competition with other banks
Revolving policies of state bank of Pakistan
Terrorist image of the country
Uncertain economic condition
Slow product development process
Change in govt. policies.
Internal audit system is not encouraging.
PEST Analysis
Political Environment
Lawyers’ movement
Violence in Karachi
The Lal Masjid debacle
Militancy operation in FATA, NWFP and Swat its impact on other parts of the
country
The return of Benazir Bhutto’s and her subsequent assassination
Unstable political situation affect bank’s policies
Talibinization affected our repute in the world
Investors hesitate investing in Pakistan
Economic Indicators
Gross Domestic Product (GDP)
inflation Increased
balance of payment
debt of the government increased
Decrease in FDI(Foreign direct investment)
Financial crisis made it BAL management difficult to survive
Socio cultural environment
low saving culture
Religious culture and people hesitate to accept interest on deposits
70% rural population and very low literacy rate
Technological Factors
Banks turning to heavy IT investments which differentiate their products
provide response times
improve customer satisfaction
products and services are gaining faster acceptance like ATM, Master cards,
Telebanking, Internet banking and mobile banking
Porter's 5 Forces Analysis
Threat of New Entrants
Person can't come along and start up a bank, but there are services, such as
internet bill payment, on which entrepreneurs can capitalize
Threat is companies offering other financial services. e.g. an insurance
company to start offering mortgage and loan services
Power of Suppliers
The suppliers of capital might not pose a big threat
the threat of suppliers luring away human capital because larger banks are
offer incentives and take away trained employees
Power of Buyers
The individual doesn't pose much of a threat to the banking industry because
of high switching cost of mortgage, car loan, credit card, and mutual funds
with one particular bank
corporate clients have banks wrapped around their little fingers
Financial institutions can switch them by offering better exchange rates,
more services, and exposure to foreign capital markets
Availability of Substitutes
there are plenty of substitutes in the banking industry
there is a non-banking financial services company that can offer similar
services like Insurance, mutual funds companies
n the lending side of the business, banks are seeing competition rise from
unconventional sources of capital
Competitive Rivalry
Banks must attempt to lure clients away from competitor banks. They do this
by offering lower financing, preferred rates and investment services
They compete on the best and fastest services
Larger banks would prefer to take over or merge with another bank rather
than spend the money to market and advertise
MARKET ANALYSIS
Four Price of Market
The marketing analysis of the bank focuses the promotional campaign, the four P’s of
marketing are also in vision of the bank that it uses for its marketing (called 4 pillars) i.e.,
product, price, place (distribution) and promotion. For more lucidity they shall be
explained briefly here.
Product Service Provided by Bank
Price Commission and Bank Charges Received
Place Placement of Services i.e. Network of its Branches
Promotion Promotion of Services
PRODUCT
The products at Alfalah include various banking services, which are its Deposits (PLS and
Non-PLS), Remittances, and ATM & VISA Cards, Lockers etc. Bank also provides Credit
Extension service.
PRICE
“The amount of money the customers pay for the product of a company”.
BAL provides different products and services to its customers. Pricing of
products/services means the commission to be paid by the customer in return of
services provided by the bank. The commission paid for the services mainly includes:
Mark up/ interest
Bank charges
Fees and bank commission etc.
The prices for various services of Bank are given in the booklet "the Schedule of Bank
Charges". The prices at the bank are quite competitive with those of other banks
working nationally.
PLACE
“The activities a bank undertakes to make products and services easily available or
accessible to the customers”.
Bank Alfalah’s objective has been to expand its branch network to meet clients’ needs.
Bank is well positioned and geographically poised, to cater for increasing business
demands, from its existing potential clientele. During last year under review, BAL
opened 8 new branches and presently it has 142 branches, spread all over Pakistan
covering major business centers and cities. Bank plans to add more branches to its
growing network.
PROMOTION
“All activities that a company undertakes to communicate and promote its products”.
This is an age of competition. Numerous organizations are providing financial services to
customers. In this world of growing competition, the only way to prosper for a bank is to
adopt proper marketing and promotional techniques.
Various promotional techniques such as advertising, personal selling (BDO) etc. are used
by bank. The promotional strategies of the Bank vary according to the market
conditions. However, the following techniques are mostly used:
Advertising
Various Information / Marketing Broachers
Personal Selling
These are some of the marketing techniques that the bank adopts in order to capture
market and attract clients.
Market Shares
As such no financial organization in Pakistan is unable to determine the correct market
share of the banking industry. Also banks do not disclose certain confidential
information to the general public and internees. Still generally foreign banks in Pakistan
contribute to about 35% to the whole banking industry. Out of which Askari, Citi,
Standard Chartered Grind lays, Muslim Commercial, ABN-AMRO banks share the major
market.
Boston Consultant Group Matrix (BCG) Model
Gro
wth
rate
Market share
High LowH
igh
Car Financing
Home Financing
Online Banking
Islamic Banking
ATM
Debit Card
Low
Deposit
Investment
Credit Cards
Rupee Traveler
Cheque
Star:
In the star, we have Car Financing Home Financing Online Banking which show the high
growth rate and high market share.
Cash Cow:
In the cash cow, we have Deposits Investments Credit Cards which show the low growth
rate and high market share.
Question Mark:
In the Question Mark, we have Islamic Banking ATM Debit Card which show the high
growth rate and low market share.
Dog:
In the Dog, we have Rupee Travelers Cheque which shows the low market share and low
growth rate.
STRATEGIES
Bank Alfalah has formulated certain sets of strategies to enable it to achieve its goals
and objectives. These strategies are mentioned below:
In order to achieve its goals of creating a sound base and presence of efficient modern
banking system, Bank Alfalah has started operation of Automated Teller Machines in all
the major areas like Karachi, Lahore, Islamabad and other cities of Pakistan.
Bank Alfalah is committed to building long-lasting relationships through an assertion to
service excellence and providing innovative products to meet the changing needs of our
valued customers. Although still in its infancy, compared to the exalted banking
standards, Bank Alfalah backed by a strong Abu Dhabi Group and inspired by the vision
of its Board and Management, has built up a strong customer base. The Bank provides a
full range of banking services to corporate clients, while applying leading technologies.
Today the Bank is well-positioned to provide appropriate banking services to customers.
The main focus is building relationships and being known by the way they do business.
Management recognizes that a banking relationship requires compatibility,
communication, and cooperation and that each customer deserves nothing less than full
attention and available resources to meet their financial objectives.
Core value and corporate culture is based on the belief that superior personalized
service is the most important product. Bank is in the process of getting to know
customers by name and understand their business and personal financial needs. This
one-on-one, personalized service quality has served as Bank Alfalah's unique signature
since inception and continues to separate it from other financial institutions.
The Bank Alfalah team comprises of some of the most highly skilled and professional
financial experts in banking industry. Managers, lenders and trust advisors offer the
unique perspective of knowing and understanding in the local economy. The
Management focuses its attention on making informed and feasible economic decisions,
bringing better returns and more profitability for investors and customers.
Keeping in view the unrest among the Islamic Community on the Interest Bearing
Banking the Alfalah is in the process of target marketing and gives its full attention to
this segment of a large population over the world.
To acquire the reputation and status of bank which operates on international standard,
Alfalah Bank was to get the credit rating of Pakistan Credit Rating Agency, which gave it
the AA- and A1+ in the long term and short term respectively.
Accounting Analysis
Accounting Convention
Management of Bank Alfalah Ltd. prepares its financial statements by following
historical cost convention of accounting. Instead of certain fixed assets which are stated
on the revalued amounts and investments available to sale are valued at fair market
value. The amounts are stated in the Pakistani currency which is bank’s presentation
and functional currency. The figures are rounded nearest to thousand.
Key Accounting Policies of Bank Alfalah
1. Cash and Cash Equivalents
Cash and cash equivalents are comprises of the cash, balances with treasury bank and
other banks and call lendings which are made for the sake of cash flow statements.
2. Sale and Repurchase Agreements
Bank Alfalah makes certain purchase/ (sale) investments under agreements of resell/
repurchase investments at a certain future date at a fixed price. The investment
agreements which are purchased are not recognized because bank has no control over
them while investments which are sold are duly recorded.
The amount paid for purchase of agreements is recorded under lending to financial
institutions and proceeds from sale of investment agreements are recognized under
borrowings.
3. Investments
Bank has classified its investments under three titles and that are:
a. Hold for trading: These investments are short term investments which bank has
kept for generating profit by the fluctuations in price of securities and interest
rate etc.
b. Held to maturity: These are the investments which have fixed or determinable
payments and bank has intention to keep them till maturity.
c. Available for sale: These are the investments which do not fall under the title of
‘Hold for trading’ and ‘Held for maturity’.
4. Advances
a. Loans and Advances:
Bank states Loans, advances and lease investments net of provisions against non
performing advances. Provisions of specific and general nature for operations in
Pakistan are made in accordance to the rules and regulations which have been
defined by the State Bank of Pakistan. The advances to overseas customers are
handled under the prevailing rules of the customer’s country.
b. Finance Lease Receivables:
In lease, Bank transfers the entire risks and rewards incidental to the owner of
the assets. Bank recognizes the present value of the lease payments under a
receivable and shows them under the title of advances to customers in the
balance sheet.
5. Fixed Assets:
Fixed assets are categorized into two classes. Accounting Policies regarding these
classes have been discussed below:
a. Tangible Assets:
Fixed assets except office premises are recorded at cost less accumulated
depreciation and accumulated impairment losses, if any. Office premises are
recorded at revalued amount less accumulated depreciation.
Depreciation on the fixed assets is charged on straight line method. Depreciation is
estimated while keeping the amount of residual value of the assets (if any) in the
mind.
Maintenance cost and repair charges are charged to the income and subsequent
costs are stated as carrying value of the asset or under separate head whichever is
appropriate, if their period of benefits extends more than one accounting period.
Office premises are revalued by the professionals so as to eliminate the effect
immateriality from the fair value of the assets.
Surplus from the revaluation is stated as “surplus on revaluation of the fixed assets”
and deficit is deducted from the previous value of the surplus on revaluation of fixed
assets. The value which exceeds from the incremental depreciation charged to the
assets is transferred to the unappropriated profits.
Gain and losses are transferred to income except those which are related to surplus.
Those are directly transferred to unappropriated profits.
b. Intangible Assets
Intangible assets which have finite life are stated on the balance sheet on the cost
less accumulated amortization and impairment losses, if any.
Amortization on the intangible assets is charged on straight line method on a rate
which is reviewed on the balance sheet in order to eliminate the factor of
immateriality.
The other intangible assets which have infinite life are stated on the cost less
impairment losses if any.
6. Impairment
Value of assets is reviewed if there is any sign of the impairment. If indication of
assets impairment exists then asset are revalued and resulted impairment losses are
recognized on the financial statements.
Impairment losses are charged to the profit and loss account except those losses
which arise from the revaluation of the assets.
Impairment losses which arise from the revaluation of the assets are adjusted
against the value of the surplus on revaluation of the assets.
7. Taxation
Taxation policies have been synthesized by classifying taxation into two
categories i.e. current tax and deferred taxes.
a. Current tax
Current tax is recognized in the profit and loss account and estimated on the
taxable income by applying stated tax rate and any adjustment of tax payable of
the previous year.
b. Deferred Taxes
Deferred taxes are stated by applying the balance sheet liability method on the
differences which are resulted on the value of assets used for reporting purposes
and the value which is presented for the tax estimation.
Deferred tax asset is only recognized to the extent to which future taxable
income is expected and tax credit can be availed.
The amount of deferred tax is reduced to the extent to which it is not possible
that tax credit can be availed.
Bank recognizes deferred tax asset/ liability that arise from the deficit and
surplus on revaluation of the fixed assets and it is adjusted against the related
deficit/ surplus in order to compliance with the IAS-12 Income Tax.
Deferred tax liability which results from the temporary differences which are
associated with exchange translation reserves of foreign branches and where the
timing difference can be controlled, is not recognized in the financial statements.
8. Employee Benefits
a. Defined Benefit Plans
Bank manages an approved funded gratuity plan for eligible employee whose
association with bank is five or more years. Contributions to the fund are made
on actuarial recommendation basis. Projected Unit Credit Method is used for
actuarial valuation. Actuarial gains and losses exceeding 10% of higher actuarial
liabilities or plan assets are stated over the average life of the employees.
Gratuity is payable to staff after the qualifying period of service.
b. Defined Contribution Plan
Bank is managing an approved provident fund scheme for permanent employees
to which both employees and bank contribute 8.33% of the basic salary of the
employees every month.
9. Revenue Recognition
a. Advances and Investments
Mark up income on advances, investments and profits on Musharika and
Mudaraba investments are recognized on time proportion basis while taking into
account the effective yield on instrument. Debt securities are purchased on
discount or premium and their discount or premium is amortized to profit and
loss over the period of its maturity by using the effective yield method.
Dividend income is recognized at the time when bank’s right to receive has been
established.
b. Leasing Finance
Bank uses the financing method for the accounting of the leasing and Ijarah
financing.
10.Foreign Currency Translation
a. Functional and Presentation Currency
Bank values the items included in its financial statements in term of Pakistani
currency.
b. Transaction and Balances
Transactions in the foreign currency are translated into Pakistani currency by
using exchange rate on the date of transactions. Gains and losses due to foreign
currency translation are settled to profit and loss statement at the end of
accounting period.
c. Commitments
Commitments are outstanding forward foreign exchange contracts which are
translated at forward rates applicable to their respective maturities.
d. Foreign Operations
Assets and liabilities of foreign operations are translated into Pakistani currency
at prevailing exchange rate at balance sheet date. Translation gains and
losses are stated in the equity and their disposal is made in profit and
loss.
11.Dividends and Appropriation to Reserves
Dividends and appropriation to reserves are reported as liability on the balance
sheet when they are approved by the BOD.
12.Segment Reporting
Bank reports primarily in the segment format. Bank’s segments are those
provide products or services and are subjected to risks and
rewards directly. Bank Alfalah has the following segments:
a. Trading and Sales
b. Retail Banking
c. Commercial Banking
d. Corporate Finance
13.Geographical Segments
a. Pakistan
b. Asia Pacific (including south Asia)
c. Middle East
14.Related Party Transactions
Parties are considered related parties when they have ability to control and
influence the decision of the other parties. BAL is executing the
related party transactions on the same terms.
Potential Red Flags and BAL’s Counter Measures
1. Credit Risk
Credit risk arises to due to borrower’s inability to repay the principal as well as
the amount of the interest. BAL has considered it very seriously; it has migrated
to BASE-II as per SBP guidelines. Bank has developed procedural manual of cross
check the figures in order to cop up with the credit risk. In order to make the risk
management function more sophisticated in the future, bank is trying to improve
the risk models and credit process infrastructure.
2. Credit Concentration Risk
Credit concentration risk arises due to concentration of exposure of credit under
various categories. In order to eliminate the credit concentration risk, SBP has
prescribed regulatory limits of maximum exposure to single and group of
borrowers. BAL’s annual credit risk plan describes the maximum exposure to an
industry which restricts the credit concentration risk of an industry. BAL has also
developed an internal rating system that allows the RMD to monitor the risk by
giving grades (which ranges from 1-12, grade 10-12 rating is for defaulters) to
customers/ borrowers.
3. Market Risk
Market risk is the risk of losses which results due to unfavorable fluctuations of
the market prices. It arises due trading activities of the bank’s treasury. It also
includes the investments and structural positions of the banks. BAL has cop up
this risk by calculating ‘Value at Risk’ on daily basis while using
historical data of 2 years. Also bank’s RMD (Risk Management Department)
calculate the capital charge for market risk as well.
4. Foreign Exchange Risk
Foreign exchange risk results due to unfavorable fluctuations of the exchange
rate. BAL manages this risk by setting and monitoring the dealer, currency and
counter party limits for on and off balance sheet financial instruments. On and
off balance sheet instruments are the contracts which are the resultant outcome
of the import and export transactions. BAL is regulating and monitoring currency
risk against prescribed enforceable limits by SBP.
5. Interest Rate Risk
Interest rate risk arises due to fluctuations in the value of the financial
instruments due to changes in the market interest rate. Bank is exposed to
interest rate risk due to asset-liability mismatch and maturity mismatch. In order
to ensure that the BAL is managing risk within limits, Asset and Liability
Management Committee (ALCO) is monitoring the re-pricing of assets and
liabilities on regular basis. BAL’s interest rate risk is in prescribed limits due to re-
pricing.
6. Liquidity Risk
Liquidity risk arises due to inability of bank to meet short term obligations. BAL’s
ALCO is responsible for managing the liquidity position and for formulation of
the strategy and oversight of the asset liability function on a regular basis. The
BOD of bank has approved a comprehensive management policy which
stipulates the early warning indicators of liquidity risk and maintenance of
various ratios. Bank is also maintaining contingency funding in order to cop up
the unforeseen liquidity risk.
Ratio Analysis
Liquidity Ratios:Liquidity ratios are the measure of the firm's ability to meet its short term
obligations.
Liquidity Ratio 2005 2006 2007 2008
Current Ratio 1.02 1.06 1.1 1.06
Sales to working capital 1.22 1.38 0.85 1.57
Working Capital 20,249,311 15,276,529 30,128,884 19,741,302
Interpretation:
Bank Alfalah has managed very consistent liquidity ratios. It can be revealed by the ratios
individually. Like current ratio of the bank is managed at an average of the 1.06. Sales to
working capital ratio, has shown an inclining trend over the years except year 2007.
Leverage RatiosLeverage ratios tell us about the capital structure of the company.
Leverage Ratios 2005 2006 2007 2008
TIE ratio 1.2 1.16 1.27 1.08
Debt to total assets 0.95 0.95 0.95 0.95
Debt to Equity 23.14 24.91 22.71 22.72
Interpretation
TIE ratio of the bank is an average is at about 1.178 throughout the last four years.
It reveals that banks operating income is 1.178 times more than its debt obligations. It is
very evident from the leverage ratios that bank is using extensive leverage for its
operations.
Profitability
Profitability ratios are the measure of the performance of the company.
Interpretation
Profitability ratios have revealed that the bank performance has inconsistent behavior and in
2008 it was at the worst position it ever had. The performance is badly affected in the last few
years. And it is result of the extreme wave of the terrorism and changed political scenario.
Activity Ratios
Activity ratios tell about efficiency of the bank. . These ratios are also called asset utilization ratios. It tells us that how efficiently assets are utilized.
InterpretationActivity ratios point out the worst efficiency of the bank. Our banks all the activity ratios are very low, which reveals that the bank is not utilizing its assets efficiently. The company has to improve or increase its sales, so that it can improve its asset utilization.MARKET RATIOS:Market measures tell the performance of the company in the market.
Market Ratios 2005 2006 2007 2008DPS 0 0 0 1.21EPS 2.56 3.525 4.815 1.627P/E ratio 3.21 2.83 2.07 6.14Dividend payout ratio 0 0 0 0.74Dividend yield 0 0 0 0.121Book value per share 2.43 2.11 2.11 1.82
