Performance Analysis of IPDC Finance LTD in terms of Profitability, Liquidity & Effeciency

Independent University, Bangladesh
Internship Report
on
Performance Analysis of IPDC Finance Ltd in terms of profitability, liquidity &
efficiency.
Course ID: BBA499A
Semester: Summer 2019
Prepared for:
Mr. Anwar Zahid
Lecturer
Department of Finance
School of Business
Independent University, Bangladesh
Prepared By:
Md. Ali Ridwan
ID. 1510155
Submission Date: July 24, 2019

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Letter of Transmittal
July 24, 2019.
Anwar Zahid,
Lecturer,
Department of Finance,
School of Business,
Independent University, Bangladesh.
Plot-16, Block- B, Aftabuddin Ahmed Road,
Bashundhara R/A, Dhaka-1229, Bangladesh.
Subject: Submission of an intern report on Performance Analysis of IPDC Finance Ltd. in terms of
profitability, liquidity & efficiency
Dear Sir,
It gives me immense pleasure to submit the report on “Performance Analysis of IPDC Finance Ltd. in
terms of profitability, liquidity & efficiency” which was assigned by Independent University, Bangladesh
as a partial requirement of the Internship Program. This report is an important part of this course, and I
have tried my best to work on it carefully and sincerely so that I can create an informative outcome.
From this, I got a remarkable amount of knowledge experience that may prove to be useful in the future.
I thank you for all the support that made my paper a success and managed in accordance with my common
hope.
Sincerely yours,
Md. Ali Ridwan

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Acknowledgement
The final outcome of this report required a lot of guidance and assistance from many people. Whatever I
have done is only because of such guidance and assistance. I thank the School of Business of Independent
University, Bangladesh for giving me the opportunity to do this report and providing me all the support
and guidance I needed to complete the report.
I am also grateful to our respective faculty, Anwar Zahid, Lecturer, School of Business. I express deep
and sincere gratitude to him whose guidance, encouragement, suggestion and constructive criticism have
contributed immensely to this report.
To all family members, relatives, friends and everyone who shared their support either morally or
physically, thank you.
Sincerely,
Md. Ali Ridwan

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Executive Summery
Non-banking financial institutions, or NBFIs, are the financial institutions that give financial services
including banking however don't hold a banking license. NBFIs basically rose with the Industrial
Promotion and Development Company of Bangladesh Limited, presently known as IPDC Finance
Limited, to reduce the restriction that existed in the financial sector and has since been adapting financial
innovations and have built up a solid a dependable balance in the competitive financial market for fulfilling
the changing requests of clients, accordingly adding differentiation to the financial sector of Bangladesh.
As an outcome, NBFIs are these days is considered as a basic part the part of the financial system, which
has been growing broadly and achieving significance consistently because of their capacity to address the
diverse financial prerequisites of business ventures.
One of the purposes of the report is to give comparative analysis and evaluation of the performance of
NBFIs in terms of profitability, liquidity & efficiency enlisted in Dhaka Stock. The understanding of the
profitability, liquidity & efficiency measures estimate utilized for this reason reflect the financial
institution’s effectiveness in basic leadership, proficiency in their center exercises and usage of assets and
their resilience to financial distress which will help the organizations in distinguishing the areas that
require consideration and corrective measures for improving their financial performance. It has been
discovered that because of high instability and need for strength in the economy and securities exchange,
patterns of profitability ratios did not illustrate consistency in some cases. To measure profitability, Return
on Assets, Return on Equity, & Profit to Operation Expense have been analyzed. To measure liquidity,
Loan to Deposit, Cost to Deposit & Loan to Total Assets have been analyzed. To measure efficiency,
Asset Utilization & Operating Efficiency have been analyzed for 5 NBFIs comparing with IPDC Finance
Ltd.
When a large portion of the financial institutions in the nation are performing not well enough for the most
part in view of mounting nonperforming loans and liquidity crisis, IPDC Finance Limited stands tall with
numerous great numbers.

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Table of Contents
Letter of Transmittal ................................................................................................................................... 2
Acknowledgement ...................................................................................................................................... 3
Executive Summery.................................................................................................................................... 4
Chapter 01................................................................................................................................................... 7
Company Profile ......................................................................................................................................... 7
1.1. Company Profile .......................................................................................................................... 7
1.1.1 General Information.................................................................................................................... 7
1.1.2 Vision, Mission, Core Value, Core Strength and Guiding Principal .......................................... 8
1.1.3 Top Priorities............................................................................................................................. 10
1.1.4 Departments & Services............................................................................................................ 11
1.1.5 Super Brand Award................................................................................................................... 12
1.1.6 Founding Members ................................................................................................................... 13
1.1.6 Current Shareholder (As Of 31 December, 2019)..................................................................... 13
1.1.7 Hierarchal Structure .................................................................................................................. 14
Chapter 02................................................................................................................................................. 15
Internship Experience ............................................................................................................................... 15
2.1. Job Responsibilities........................................................................................................................ 15
2.2. Functions of the Department .......................................................................................................... 18
Chapter 03................................................................................................................................................. 20
Internship Outcome................................................................................................................................... 20
3.1. Analysis of the Industry.................................................................................................................. 20
3.2. Main Competitors........................................................................................................................... 23
3.2.1 Sampling and Data Collection: ................................................................................................. 25
3.3. Analyzing The Issue Based on Relevant Techniques with the Support of Suitable Theories &
Literature: .............................................................................................................................................. 27
3.3.1. Comparative Analysis .............................................................................................................. 28
3.4. Findings & Recommendation:........................................................................................................ 33
Chapter 04................................................................................................................................................. 35
Conclusion ................................................................................................................................................ 35
References................................................................................................................................................. 36

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Appendix................................................................................................................................................... 37
Appendix: A .......................................................................................................................................... 37
Appendix: B........................................................................................................................................... 37
Appendix: C........................................................................................................................................... 37
Appendix: D .......................................................................................................................................... 38
Appendix: E........................................................................................................................................... 38
Appendix: F........................................................................................................................................... 38
Appendix: G .......................................................................................................................................... 39
Appendix: H .......................................................................................................................................... 39

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Chapter 01
Company Profile
1.1. Company Profile
1.1.1 General Information
Name of the Company IPDC Finance Limited
Formerly registered as Industrial Promotion and
Development Company of Bangladesh Limited.
Legal Form Public limited company
Date of Incorporation 28 November 1981
Company Registration Number (C-9566)/392 of 1981-1982 dated 28 November 1981
Listing Date 03 December 2006
(Dhaka Stock Exchange and Chittagong Stock
Exchange)
Authorized Share Capital BDT 8,000,000,000
Paid up capital BDT 2,181,608,160
Branches 12
Chairman Dr. Muhammad Musa
Managing Director Mominul Islam
Stock Exchange Trading Code IPDC
Registered Office Hosna Centre (4th floor)
106 Gulshan Avenue, Dhaka 1212
PABX: 55068929,55068931-37, 029891758
FAX: 55068928, 55068930
Email: email@ipdcbd.com
Auditor Hoda Vasi Chowdhury & Co, Chartered Accountants
Principal Bankers Standard Chartered Bank
Dhaka Bank Limited
Prime Bank Limited
Mercantile Bank Limited
Eastern Bank Limited
Dutch Bangla Bank Limited
United Commercial Bank Limited
BRAC Bank Limited
AB Bank Limited
Mutual Trust Bank Limited
(IPDC Finance LTD, 2019)

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1.1.2 Vision, Mission, Core Value, Core Strength and Guiding Principal
Vision Mission Core Value
To become the most passionate
financial brand in the country
with a special focus on youth,
women and under-served areas.
To enable our customers and
communities to live unbound
and to live to their fullest
potential by extending
innovative financial solutions in
a friendly, timely, transparent
and cost-effective manner.
o Serving our customers
with passion and honesty
o Going beyond the
normal call of duty
o Relentlessly pursuing
innovation
Core Strength Guiding Principal
o Strong and diverse Board of
Directors
o Experienced management
o Strong governance and
regulatory compliance
o Quality asset base
o Strong capital base
o Extraordinary customer
service and experience
o Unique corporate culture
o Conducting our business with the highest levels of integrity
o Demonstrating a strong will to win in the marketplace
o Promoting diversity in the workplace
o Encouraging under-served and under-penetrated communities
with tailor-made products and services
o Supporting the spirit of teamwork and collaboration
o Harnessing the power of technology to deliver better customer
experience and outcomes
o Setting the standards of corporate citizenship through
extensively engaging in community development initiatives

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Core Objectives:
Embracing customer’s
passion
Accepting no limits Relentless Pursuit for
Innovations
These three core objectives are built on the following sets of core values:
o Delivering extraordinary customer experience by placing customer at the heart of everything we do.
o Displaying the highest level of integrity in the way we conduct our business
o Demonstrating a strong will to win in the market place.
o Promoting diversity in the work place and community
o Encouraging teamwork and collaborative efforts
o Harnessing the power of technology to deliver better customer experience
o Setting the standard for the best corporate citizenship in the communities we work
Strategic Objectives:
ENABLING SUPPORTING CREATING
o Families to get dream homes
o Families to enjoy home-
convenience goods
o Women to build financial
and Non-financial assets
o MSES
o To have easy access to
financial
o New entrepreneurs

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1.1.3 Top Priorities
An issue is material to IPDC if it meets any of the following two conditions. Firstly, it impacts our business
in terms of growth, cost and risk. And secondly, it is important to our stakeholders. Through our analysis,
we have identified some key issues that are material to both our company as well as our stakeholders.
These key issues are illustrated below:
Customer o Safety of deposits
o Timely loan disbursement
o Simple documentation process
o Quality customer service
Employee o Career progression opportunities and
retaining talents
o Knowledge and skill enhancement
o Diversity and inclusion
o Work-life balance with safe and conducive
workplace
Investors o Financial position
o Sustainability of business
o Effective communication of business
strategy
o Effective corporate governance with
efficient risk management
Supplier o Compliance with contractual terms
o On-time payment processing
o Transparent procurement process
Communities
and Society
o Social responsibility and impact to society
o Environmental stewardship
o Resource protection and energy efficiency
o Community engagement
Regulators o Compliance with rules and regulations
o On-time regulatory reporting
o Effective corporate governance

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1.1.4 Departments & Services
Departments Services
 Corporate Business o Lease Finance
o Term Loan
o Project Finance
o Short Time Financing
o Investment in Preference and Common
Share
 Medium Market Enterprise o Lease Finance
o Long Term Finance
o Short Time Finance
o Financing Women Entrepreneurs
o Factoring
o Work Order Financing
 Retail Business o Savings Scheme
o Deposit Scheme
o Home Loan
o Auto Loan
o Personal Loan
o Club Royal
 Supply Chain Finance
 Human Resources

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1.1.5 Super Brand Award
IPDC has set a benchmark with its branding, outwitted the competition and built an enviable reputation in
the country with its activities post rebranding. Hence, after an extensive and robust research process that
measures the equity of thousands of brands, in both direct-to-consumer and business-to-business markets,
IPDC achieved the status of SUPERBRAND.
Quick Fact: Superbrands was found by advertising executive Marcel Knobil in London in 1994. It began
as a radio show on GLR (now BBC radio London). (IPDC Finance LTD, 2019)

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1.1.6 Founding Members
1.1.6 Current Shareholder (As Of 31 December, 2019)

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1.1.7 Hierarchal Structure
Managing Director
Deputy Managing Director
General Manger
Deputy General Manger
Assistant General Manger
Senior Manger
Manager
Assistant Manger
Senior Executive
Executive
Assistant Executive

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Chapter 02
Internship Experience
2.1. Job Responsibilities
After the fulfillment of academic study, we all should go into the professional world. Prior to experiencing
the professional world, to function as an intern in a company is the best chance to rehearse corporate
culture and use utilize educational learning. I got the entitlement to work at IPDC Finance for a time of 3
weeks.
I encountered that every desk is assigned with specific jobs and particular persons take responsibility just
as to do the occupations. In participating with every one of the people I worked with, I came to gain
proficiency with a lot of things which will help me in expert life as well as in my own life.
I worked in the Head Office branch at Gulshan of IPDC Finance Ltd. from July 17, 2019, to August 18,
2019.
These three-month journeys of my internship with IPDC Finance Ltd were great. I make the most of my
works and all the stuff, officials of the company were in all respects well-disposed and accommodating.
As I functioned as an understudy there, I was doled out at various work areas of Corporate Business
department.
My supervisor was Jumaratul Banna, Assistant General Manager, Head of Local Corporate. I was also
fortunate to work for Md. Emran Khan, Assistant Manager, Akif Chowdhury, Assistant Manager,
Tawship Ahmed, Assistant , Nafisa Kamal Jhumur, Assistant Relationship Manager and Md. Raihanul
Islam, Management Assistance.
I, not only worked for Corporate Business but also I worked for the Retail and Credit Risk Management
Departments of IPDC Finance. My responsibilities took me to meet some of the renowned people of the
corporate world such as Md. Zillur Rahman, CFO, NRB Global Bank, Mr. Tanzim Alamgir, Head of
Investment Banking, City Bank Capital Resources Ltd, Mr. Touhidul Islam, Executive Director,
Bashundhara Group, Mr. Asif Mahmud Taiseer, Head of Treasury Operation, Berger.
I also dealt with a few organization such as Banglalink, Dmoney, Buro Bangladesh, EBL Bank, Prime
Bank Ltd. and Seven Circle cement. This helped me to build my courage to sustain in the corporate world.

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Having visited all these institutions and people who are successful in the corporate world helped me to
gain a new sense of professionalism and a clearer view of what it meant to be in the professional world.
I had to have full understanding of this products in pursuit to help prepare the instruments, report, memo,
assessment of credit rating and credit proposal. This tasks lead us to have idea on Loan Classification and
Provisioning proposed by Bangladesh Bank.
I also worked for Sales and New Customer Acquisition. For New Customer, I had to prepare Document
Checklist and fulfill the requirement to open an account. The Document Checklist was more or less
different between Individual Account and Institutional Account.
There are some requirements that are mandatory for All Applicants:
o Duly Completed deposit opening form
o Signed Terms and Conditions
o Photos of the Applicant(s) with signature
o Photos of the Nominee(s) with signature
o Copy of Valid Photo ID (e.g. Passport, Birth Certificate, Driving License, National ID etc)
o ETIN Certificate
o Filled in KYC duly signed by RM
o ML & TF risk based assessment duly signed by RM (ensure CDD/EDD)
o Clientele Acknowledgement Form
o All the photocopied documents must be originally sighted with sign and seal
o Any overwriting/Cancellation (Authenticated by Customer)
Class-Segmented of Deposit
SI Corporate Amount Retail Amount
1 High 50,000,000+ High 20,000,000-
50,000,000
2 Mid 10,000,000+ Mid 5,000,000-
10,000,000+
3 Low 10,000,000
below
Low 500,000-
50,00,000

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For Institutional Customer the requirements documents are:
SI Documents
Proprietorship
Concern
Partnership
Firm
Private
Limited
Company
Public
Limited
Company
1. Updated Trade License ✔ ✔ ✔ ✔
2. National ID of Directors ✔ ✔ ✔ ✔
3. ETIN Certificate ✔ ✔ ✔ ✔
4. Photograph of the
Directors/Owners
✔ ✔ ✔ ✔
5. Registered Partnership
Deed
✔
6. Memorandum & Article of
Association
✔ ✔
7. Form XII ✔ ✔
8. Schedule X ✔ ✔
9. Certificate of Incorporation ✔ ✔
10. Board Resolution (as
applicable)
✔ ✔
11. Environment Clearance
Certificate
✔ ✔ ✔
12. Audited Financial
Statements (latest 3 years)
✔ ✔ ✔ ✔
13. Credit Rating Report
(Latest)
✔ ✔ ✔ ✔

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2.2. Functions of the Department
In IPDC Finance Ltd’s Corporate Business Department is involved with major tasks. Corporate
Department deals mainly with three products such as Lease Finance, Term Loan, and Short Term
Financing. The two products such as Project Financing and Preference Share Investment take place with
a few customer.
Lease Finance o Financing may be extended up to
100%
o Financing is offered usually for a
term of 1 to 5 years
o Very competitive interest rate
o Repayment of lease rentals can
be structured as monthly,
quarterly, semni0annually or
annually to match with cash flow
of the company.
o Legal Ownership will remain in
the name of IPDC throughout
lease period and will be
transferred to the client after full
adjustment
o Lease financing is provided
against industrial machineries,
commercial equipment,
generators, vehicles, vessels,
industrial large engines and so
forth that will be newly
procured. Lease facility may
also be provided against
already procured or in-use
industrial machinery,
commercial equipment, office
equipment, generators,
vehicles, vessels, engines, and
many more.
Term Loan o The tenure of the facility usually
ranges from 1 to 5 years
o Competitive interest rate
o Repayment is usually done
though monthly or quarterly
installments
o Term Loan is designed for
long-term business purposes
and is generally provided to
meet variouscapital/fixed
expenditures such as balancing
of production line,
modernization of
manufacturing process,
expansion of capacity and
space and so on.

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Project
Financing
o A Certain debt-equity ratio to be
maintained while financing the
project
o For projects requiring large
scale investment, IPDC brings
other Financial
Institutions/Banks to raise
funds through syndication
where IPDC acts as the lead
arranger for the financing.
Short Term
Financing
o The tenure of the facility may be
extended up to 12 months
o Competitive interest rate
o Repayment is usually done
though monthly or quarterly
instalments
o Structured repayment
mechanism may be offered
depending on the need of the
client
o IPDC offers working capital
financing to assist institutions
in carrying out day-to-day
business operations, to meet
short term cash requirements.
Preference
Share
Investment
o Repayment will be made through
dividend payment(s)
o Annual principal redemption
may be applicable
o The facility may be called.
o IPDC corporate division
makes financing by purchasing
preference and common shares
if clients raise fund and
receives payments usually
through redemption of the
preferred shares over the
tenure and receiving dividend
from equity shares.

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Chapter 03
Internship Outcome
3.1. Analysis of the Industry
Financial Institutions have generally been the major source of long-term assets for the economy in
accordance with the improvement goal of the state. The financial sector is exceedingly divided with 59
planned banks and 34 non-banking financial institutions (NBFI), total portfolio standing at Taka 850
billion according to The Financial Express Newspaper, which have seen extensive development in the last
two and half decades after the liberalization of the sector. The financial sector, be that as it may, is right
now going through a slow period impair with expanding classified loan ratio around 10%. The NBFI area
involves mostly small institutions having collectively only around 6% - 7% piece of the overall industry
of the credit portfolio and 4% - 5% share of the deposit portfolio of the overall financial sector. The most
elevated competitive felt by NBFIs is in deposit mobilization at a competitive cost. FIs can be
comprehensively arranged as the nature of their operations. (IPDC Finance Limited, 2018)
According to Bangladesh Bank, Non-bank Financial Institutions are financial intermediaries that collect
funds by borrowing from the overall population and lend the equivalent to meet specific financing needs,
by disallowing to acknowledge such deposits payable either or demand or by cheque, draft, so on and
operate checking accounts for which their liabilities are not part of the cash supply. In general, non-bank
financial institutions (NBFIs) are financial institutions that give banking administrations without gathering
the legal meaning of a bank, for example, one that does not hold a banking permit. NBFIs can't take
transactional deposits. In this manner, the expense of the fund stays very high. Then again, while lending
NBFI has to offer the market interest rates to the customers. Thusly, the overall spread of NBFI stays
under pressure and is dependably lower than that of Banks. Depending on their nature of exercises non-
banking finance companies can be Development Finance Institutions, Leasing Companies, Investment
Companies, Modaraba Companies, House Finance Companies, Venture Capital Companies, Discount &
Guarantee Houses and Corporate Development Companies. (BLFCA, n.d.)
In our nation, the activities of NBFIs are controlled and directed by the Bangladesh Bank. A 'Code of
Conduct for Banks and Non-bank Financial Institutions' has been presented in 2017 to promote rationale
reasoning conduct between banks, NBFIs, and their partners. Non-Bank Financial Institutions (NBFIs)
are being an essential position by giving extra financial services that can't be continuously given by the
banks. Industrial Promotion and Development Company (IPDC) was the first NBFI in Bangladesh, which

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started its procedure in 1981. Since then, the amount of NBFI has been developing. The NBFIs, with
increasingly having many different items and administrations, have had their spot in the aggressive money
related market to fulfill the changing requests of clients. NBFIs additionally do a significant job in the
capital market just as in the real estate sector of Bangladesh. Like the banks, the vast majority of the NBFIs
have separate subsidiaries to work merchant banking exercises. NBFIs are managed by Bangladesh Bank
following a risk-based supervisory framework. NBFI can't give operating account facilities like savings
and current deposits, cash credits, overdrafts, etc. and so on. NBFIs may get to public funds, either directly
or indirectly through public deposits, commercial papers (CPs), debentures, and bank finance. In any case,
they can just take term deposits with a base maturity of 3 months. NBFIs are liable to the cautious
rules/points of confinement, for example, income recognition, provisioning norms, and asset
classification; single and group borrower exposure limits; capital adequacy norms; classification and
valuation norms for the investment portfolio; prudential limits on capital market exposures; CRR/SLR
necessities; accounting and exposure standards and supervisory detailing requirements issued by
Bangladesh Bank.
(Billions in BDT)
2012 2013 2014 2015 2016 2017 2018
Total Assets 333.9 436.3 520.1 611 713.9 841.07 870.3
Total Liabilities 274.3 350.4 424.2 509 606.46 725.95 762.04
Liabilities-assets ratio 82.2 80.3 81.5 83.3 84.95 86.36 87.56
Total deposit 145.4 198.3 238.5 318.1 382.43 467.98 480.1
Deposit as % of total
liabilities 53 56.6 56.2 62.5 63.1 64.41 63
*As of 30 June 2018. Source: Department of Financial Institutions and Markets, BB.

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Like banks, the performance of NBFIs is additionally assessed through the CAMELS rating which
includes examination and assessment of the six indicators measurements. The six indicators utilized in the
rating system are capital adequacy, asset quality, management efficiency, earnings, liquidity, and
sensitivity to market risk. ( Bangladesh Bank, 2018)
Non-performing loans in the financial sector are expanding at a worrying rate, leading a huge provisioning
prerequisite, which unfavorably affected the general overall profitability of the industry. The greater part
of the Banks and NBFIS have recorded negative or moderate benefit and balance sheet growth in the
initial 75%, on year over year (YoY) premise. Around 64 percent of the recorded non-bank financial
institutions (NBFI) saw immense drops in their income in the initial nine months of the year because of
interest rate cutbacks, enormous provisioning against default loans and losses from capital market. There
was a liquidity crunch in the first half of the year, so banks and NBFIs faced problems in achieving a good
loan growth, according to Arif Khan, managing director of IDLC Finance. “Bad management and bad
governance also caused the decline in profit. This impacted the profits,” he added. ( thedailystar, 2018)
The activities of NBFIs do not just give an alternative origin of financing other than bank yet additionally
encourage a sound situation in the financial market. In the meantime, the job of the part is likewise
fundamental in an economy especially right now of the financial crisis. The confinements of the banking
0
100
200
300
400
500
600
700
800
900
1000
2012 2013 2014 2015 2016 2017 2018
Trends in Assets, Liabilities and Deposits of NBFIs
Total Assets Total Liabilities
Liabilities-assets ratio Total deposit
Deposit as % of total liabilities

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segment in planning products for all territories of business make the possibilities for the NBFIs to enlarge
their exercises through creating modified and quick unusual scope of financial products.
Recently, Bangladesh Bank has permitted non-bank financial institutions to write off bad loans without
recording a claim for a lawsuit. Bangladesh Bank permitted NBFIs to write off a loan worth below Tk 2
lakh without documenting a claim. In the past strategy, the breaking point was Tk 50,000. As per the new
approach, NBFIs will likewise need to write off bad loans after remaining classified under bad criteria for
three consecutive years without any possibility of recovery in the near future. The past approach permitted
NBFIs to write off loans which remained classified as bad for five years in a row. (Newagebd, 2019)
3.2. Main Competitors
The expanding number of NBFIs over the period shows the demand and adequacy of the sector inside the
financial market of Bangladesh. IPDC Finance Limited is the first private sector financial institution of
the country established in 1981. With the change over the period in Bangladesh, the level of competition
has been heightened. 34 FIs are working in Bangladesh while the maiden one was set up in 1981. Out of
the total, 2 is completely government claimed, 1 is the subsidiary of a SOCB, 15 were started by private
household initiative and 15 were started by joint venture initiative. (Central Bank of Bangladesh, 2018)
NBFI’s include:
o Agrani SME Financing Company Limited
o Bangladesh Finance & Investment Co. Ltd.
o Bangladesh Industrial Finance Company Limited
o BIFFL
o Bay Leasing & Investment Limited
o CVC Finance Limited
o Delta Brac Housing Finance Corporation Ltd. (DBH)
o Fareast Finance & Investment Limited
o FAS Finance & Investment Limited
o First Finance Limited
o GSP Finance Company (Bangladesh) Limited (GSPB)
o Hajj Finance Company Limited
o IDLC Finance Limited

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o Industrial and Infrastructure Development Finance Company (IIDFC) Limited
o Infrastructure Development Company Limited (IDCOL)
o International Leasing and Financial Services Limited
o IPDC Finance Limited
o Islamic Finance and Investment Limited
o LankaBangla Finance Ltd.
o Lankan Alliance Finance Limited
o National Finance Ltd
o National Housing Finance and Investments Limited
o People's Leasing and Financial Services Ltd
o Phoenix Finance and Investments Limited
o Premier Leasing & Finance Limited
o Prime Finance & Investment Ltd
o Reliance Finance Limited
o Saudi-Bangladesh Industrial & Agricultural Investment Company Limited (SABINCO)
o The UAE-Bangladesh Investment Co. Ltd
o Union Capital Limited
o United Finance Limited
o Uttara Finance and Investments Limited

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3.2.1 SAMPLING AND DATA COLLECTION:
No.
Company Name Total Assets
1 LankaBangla Finance Limited 80,668,141,733
2 IPDC Finance LTD 50,511,180,906
3 Uttara Finance and Investments
Limited
41,226,802,054
4 Phoenix Finance & Investments
Limited
30,246,416,780
5 Union Capital Limited 21,358,259,654
6 FAS Finance and Investment
Limited
18,777,761,726
7 BD Finance 17,508,430,806
8 Bay Investment 16,129,984,122
9 Prime finance and investment
limited
12,114,142,501
10 GSP Finance company limited 9,591,342,540
For this comparative analysis report, 5 Financial Institutions (FI) have been taken out of 10 FIs based on
their Total Assets in 2018. The source of data are from annual reports for year 2014 to 2018 which are
available on their websites and DSE.

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o Phoenix Finance & Investments Limited Phoenix Finance & Investments Limited was
incorporated in Bangladesh on April 19, 1995 as
Public Limited Company under the Institutions
Act 1994 and started its operation on May 9 1995
as a Non-Banking Financial Institution under
Financial Institution Act 1993.
o LankaBangla Finance Limited LankaBangla Finance Limited started its journey
long back in 1997 as a joint-venture financial
institution with multinational collaboration
having license from Bangladesh Bank under
Financial Institution Act-1993. Now
LankaBangla is the country’s leading provider of
integrated financial services including corporate
financial services, retail financial services, SME
financial services, and wealth management
services.
o Union Capital Limited UCL and its subsidiaries constitute one of the
largest financial groups, which began its activities
more than 16 years ago. UCL’s predecessor
Peregrine Capital Limited was established in
1988 based in Hong Kong.
o Uttara Finance and Investments Limited Uttara Finance and Investments Limited, a joint
venture leasing and financing company,
registered as a non-banking financial institution
under the Financial Institutions Act 1993 and the
Institutions Act 1994 with license from
Bangladesh Bank to operate and transact all kinds
of business as provided under the relevant laws.

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3.3. Analyzing The Issue Based on Relevant Techniques with the Support of Suitable
Theories & Literature:
 Return on Assets
(ROA)
o In the stock market, Ghosh, Nag, and Sirnmans
(2000) confirmed that ROA is widely used by
market analysts as a measure of financial
performance, as it measures the efficiency of assets
in producing income.
o Profitability
 Return on Equity
o It’s a good indication of whether the company is
even capable of generating a return that is worth
whatever risk the investment may entail (Berman,
Knight and Case, 2013)
o Profitability
 Loan to Deposit
o Ulandari, et al. (2016) in the research show the
result on Loan to Deposit Ratio give positive effect
toward profitability which proxy by ROA.
o Liquidity
 Cash to Deposit
o It is the ratio of how much an institution loans out
of the deposits it has prepared.
o Liquidity
 Loan to Total
Assets
o It is the percentage of an organization's total assets
that were financed by creditors
o Liquidity
 Assets Utilization
o The asset utilization ratio calculation the total
revenue earned for each penny of benefits an
organization possesses.
o Efficiency
 Operating
Efficiency
o A metric that estimates the efficiency of profit
earned as an element of operational costs.
o Efficiency
 Cost-to-Income
o Welch (2006), also stated that being a standard
benchmark of non-banks efficiency, The CIR
measures a non-banks operating cost to its total
operating income
o Efficiency

28 | P a g e
3.3.1. Comparative Analysis
Return on Assets (ROA):
IPDC Finance Ltd. experienced a growth till 2015 then it suddenly saw a decline. The continuous drop
brought them below to its competitor’s average trend in 2016. As ROA indicates the profitability of the
company, the declining ROA pointed out that IPDC hadn’t been efficiently managing its invested capital
to generate earnings. The declining trend stabled from 2017. Recently, ROA trend did not experience any
declining trend. The ROA figure gives the investor a thought of how effective the organization is in
changing over the cash it puts into total net income. (Shown in Appendix A)
Return on Equity:
0.00000
0.00500
0.01000
0.01500
0.02000
0.02500
0.03000
0.03500
2014 2015 2016 2017 2018
IPDC Finance LTD
Average ROA
0.00000
0.02000
0.04000
0.06000
0.08000
0.10000
0.12000
0.14000
0.16000
0.18000
2014 2015 2016 2017 2018
IPDC Finance LTD
Average ROE

29 | P a g e
The steady increase in the ROE continued from 2014 till 2018. Even though the average competitors
ROE experienced a sharp decline from 2016. In spite of the fact, IPDC showed a steady increase. IPDC
Finance Ltd. successfully generated profits from its shareholders' investment and the continuous growth
indicated a good sign of the company. It’s also a good indication that the management is effectively
using the company’s assets to create profits. (Shown in Appendix B)
Cost-to-Income Ratio:
IPDC Finance Ltd. saw a higher Cost-to-Income ratio than its competitor’s average trend until 2017. The
Cost-to-Income ratio estimates the cost of running a business contrasted with its operating income. A low
cost-to-income ratio implies the company is dealing with its costs well and isn't overspending to create
income. A high cost-to-income ratio, then again, proposes that a company isn't being as efficient as it may
be in controlling expenses. The institution started to lower its Cost-to-Income ratio which indicated that
they were managing its costs well. (Shown in Appendix C)
0.000000
0.050000
0.100000
0.150000
0.200000
0.250000
0.300000
0.350000
0.400000
0.450000
0.500000
2014 2015 2016 2017 2018
IPDC Finance LTD
Average Profit to
Operation Expense

30 | P a g e
Loan to Deposit:
If the ratio is excessively high, it implies that the company might not have enough liquidity to cover any
unanticipated fund necessities. Then again, if the ratio is excessively low, the company may not be earning
as much as it could be. IPDC had lower loan-to-Deposit ratio than its competitors on average. IPDC might
not be earning an optimal return. LDR demonstrates how well a company is attracting and holding clients.
(Shown in Appendix D)
Cash to Deposit:
Cash-to-Deposit indicates how much of a company’s core funds are being used for lending. IPDC has lent
out of their deposits less than its competitors. The average of competitors also saw declining trend. Due
to the liquidity crisis, all the financial institutions are more prone to collection deposit nowadays. IPDC
experienced a continuous drop in Cash-to-Deposit ratio. (Shown in Appendix E)
0.0000
0.2000
0.4000
0.6000
0.8000
1.0000
1.2000
1.4000
1.6000
1.8000
2014 2015 2016 2017 2018
IPDC Finance LTD
Average Loan to
Deposit
0.0000
0.0050
0.0100
0.0150
0.0200
0.0250
2014 2015 2016 2017 2018
IPDC Finance
LTD
Average Cash
to Deposit

31 | P a g e
Loan to Total Assets:
Loans to assets ratio is a financial ratio that generally measures the connection of the company's loan
portfolio to the total assets. IPDC experienced a dramatic increase in Loan-to-Total Assets ratio from 2014
to 2016 and it continued to grow compared with its competitors which mean IPDC is taking more financial
leverage than its competitors and is at higher risk. (Shown in Appendix F)
Asset Utilization:
IPDC experienced a steep drop in 2015 which indicated IPDC declined to generate earnings against its
assets of a company. Before 2015, IPDC’s Asset Utilization was way better than its competitors. The
ratio started to increase slowly from 2017 once again. An ideal asset utilization ratio implies the company
is being proficient with the assets it held. (Shown in Appendix G)
0.6500
0.7000
0.7500
0.8000
0.8500
0.9000
2014 2015 2016 2017 2018
IPDC Finance LTD
Average Loan to
Total Assets
0.0000
0.0100
0.0200
0.0300
0.0400
0.0500
0.0600
0.0700
0.0800
0.0900
2014 2015 2016 2017 2018
IPDC Finance LTD
Average Assets
Utilization

32 | P a g e
Operating Efficiency:
IPDC experienced a sharp drop in 2015 by minimizing the operating expense and utilizing operating
income. The decline caused IPDC to go below the average trend of its competitors which indicated IPDC
having a low operating ratio means a high net profit. (Shown in Appendix H)
0.0000
0.0100
0.0200
0.0300
0.0400
0.0500
0.0600
0.0700
0.0800
0.0900
2014 2015 2016 2017 2018
IPDC Finance LTD
Average Operating
Efficiency

33 | P a g e
3.4. Findings & Recommendation:
When a large portion of the financial institutions in the nation are performing not well enough for the most
part in view of mounting nonperforming loans and liquidity crisis, IPDC Finance Limited stands tall with
numerous great numbers. Classified loan ratio of IPDC is simply 1.2 percent, much lower than the
industrys' normal more than 11 percent. Practically every one of the banks and non-bank financial
institutions has been confronting liquidity crisis for over a year, however, IPDC was an exception as its
deposit rose 24.61 percent year-on-year in 2018, primarily because of the certainty of the clients. The
lender's loan portfolio became even at a higher rate. This great performance is additionally reflected in the
organization's net profits that expanded by 34.32 percent a year ago contrasted with the earlier year. At
the point when the share price of a considerable lot of the almost three dozen non-bank financial
institutions (NBFIs) are underneath their face value (Tk 10), IPDC's share was still over Tk 25 on the last
working day. (The Daily Star, 2019) IPDC has achieved:
o Highest corporate portfolio among the top NBFIs
o The fastest growing Balance sheet in the industry
o Created extraordinary customer experience
o Earned the prestigious "Superbrand" award
o Encouraging entrepreneurship through SCF
o Introducing cutting edge technologies like Block chain & AI to promote products and services and
being pioneer in Digital Supply Chain Finance Management & Retailer Financing.
IPDC Finance Ltd. is one of the renowned non-banking financial institutions in Bangladesh in spite of
that the company struggles to compete with its competitors. The following recommendations have been
generated to help IPDC Finance Ltd. to have competitive edge as opposed to their competitors.
1. NPL Monitoring Process Should be More Stringent: The Company is already doing well with
the policy and they should continue this practice.
2. More Deposit Prone: IPDC Finance LTD. has a gap of almost 30% between Assets and its
Liability. They cover this gap with treasury borrowing. The problem with the treasury borrowing
is that there could be a liquidity crisis. Suppose, the bank could ask 50 million BDT all of a sudden
and the company has to pay that money on time but if they were more prone to deposit of

34 | P a g e
individuals. They wouldn’t face this future liquid crisis. It would be very unlike to happen that 100
of people ask for their deposited worth of 50 million BDT in the very same day.
3. Reliance on Retail: To minimize risk, apart from increasing Corporate concern. IPDC should
focus more on accounts based practice. Such as, IPDC lend money to ABC company 10 million
BDT worth of the loan. It’s likely the company may not repay the money. If it happened, IPDC
would lose their whole 10 million BDT. If they would lend 10 million BDT to 5 people by dividing
it. The possibility to lose the whole amount is very unlikely.
4. Investment Banking: It’s high time that IPDC should move for the Investment Banking sector.
With this exposure, IPDC can extend its business network by being an Investment Bank itself.
5. Participate as an Underwriter: The competitor like IDLC has taken its part to be an underwriter
and helping institutions to syndicate. IPDC has yet to be work as an underwriter.

35 | P a g e
Chapter 04
Conclusion
To boost the financial performance, adequacy, and proficiency of a company's management team in
dealing with the equity contribution of the shareholders. It is likewise important to distinguish the zones
of the company that requires improvement. Analysis of profitability ratios may help a financial institution
to distinguish the factors in charge of low or declining interest income.
Having compared with IPDC’s competitors, the competitive profit is not the same but IPDC’s constant
growth, dividend payout ratio, diverse share, lowest NPL ratio and government involvement made them
the best non-banking financial institution. In 2018, when every financial industry was struggling IPDC
made almost 50% of profit. Even in the downfall, IPDC Finance Ltd sustained.
As the Daily Star newspaper reported that IPDC targets to help 50,000 families get a dream home, enable
10,000 women to build financial and non-financial assets and create 20,000 new entrepreneurs. The
company’s total contribution to the government exchequer hit Tk 22.3 crore in 2016, which was Tk 11.6
crore in 2015 and Tk 6 crore in 2014.

36 | P a g e
REFERENCES
(2018). Bangladesh Bank. Dhaka: Regulation, Performance and Supervision of NBFIs.
thedailystar. (2018, November 8). Retrieved from Earnings of listed NBFIs sink:
https://www.thedailystar.net/business/news/earnings-listed-nbfis-sink-1657690
BLFCA. (n.d.). Retrieved from http://www.blfca.org/industry-update/nbfi-sector-update/
(2018). Central Bank of Bangladesh. Dhaka: Central Bank of Bangladesh.
(2018). IPDC Finance Limited. Dhaka: Financial Sector .
(2019). IPDC Finance LTD. Dhaka: IPDC Finance LTD .
Newagebd. (2019, April 02). Retrieved from http://www.newagebd.net/article/68936/nbfis-also-get-
extended-loan-write-off-capacity
The Daily Star. (2019, July 06). Retrieved from Best Financial Institution of the Year:
https://www.thedailystar.net/frontpage/news/best-financial-institution-the-year-1767358
Ghosh, C., Nag, R., & Sirnmans, C. F. (2000). The Pricing of Seasoned Equity Offerings: Evidence
from REITs. Real Estate Economics, 28(3), 363-384
Berman, K. Knight, J., Case, J (2013). Financial intelligence. A manager’s guide to knowing what the
numbers really mean, business literacy institute, inc. USA

37 | P a g e
Appendix
APPENDIX: A
IPDC Finance LTD Year ROA Average ROA
2014 0.02137 0.012445
2015 0.02928 0.016293
2016 0.01342 0.016744
2017 0.00854 0.013868
2018 0.00891 0.011741
APPENDIX: B
IPDC Finance LTD Year ROE Average ROE
2014 0.07222 0.07222
2015 0.09706 0.09706
2016 0.10922 0.10922
2017 0.10784 0.10784
2018 0.11994 0.11994
APPENDIX: C
IPDC Finance LTD Year Cost to Income Ratio Average Cost to
Income Ratio
2014 0.318793 0.300
2015 0.302815 0.268
2016 0.403837 0.285
2017 0.459901 0.322
2018 0.400962 0.449

38 | P a g e
APPENDIX: D
IPDC Finance LTD Year Loan to Deposit Average
2014 1.4201 1.540
2015 1.4117 1.413
2016 1.1340 1.316
2017 1.1587 1.422
2018 1.1958 1.420
APPENDIX: E
IPDC Finance LTD Year Cash to Deposit Average of Cash to
Deposit
2014 0.0212 0.021
2015 0.0181 0.022
2016 0.0132 0.019
2017 0.0127 0.018
2018 0.0132 0.017
APPENDIX: F
IPDC Finance LTD Year Loan to Total Assets Average Loan to Total
Assets
2014 0.7331 0.802
2015 0.7822 0.775
2016 0.8629 0.815
2017 0.8773 0.801
2018 0.8775 0.816

39 | P a g e
APPENDIX: G
IPDC Finance LTD Year Asset Utilization Average of Asset
Utilization
2014 0.0749 0.041816
2015 0.0780 0.045088
2016 0.0373 0.041838
2017 0.0317 0.036642
2018 0.0371 0.038828
APPENDIX: H
IPDC Finance LTD Year Operating Efficiency Average of Operating
Efficiency
2014 0.0749 0.041816
2015 0.0780 0.045088
2016 0.0373 0.041838
2017 0.0317 0.036642
2018 0.0371 0.038828

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