Introduction:

Export Import Bank of Bangladesh Limited was established in the year 1999 under the leadership of Late Mr. Shahjahan Kabir, Founder Chairman who had a long dream of floating a commercial bank which would contribute to the socio-economic development of our country. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founder chairman to materialize his dream. Indeed, all of them proved themselves in their respective business as most successful star with their endeavor, intelligence, hard working and talent entrepreneurship. This Bank starts functioning from 3rd August, 1999 with its name as Bengal Export Import Bank Limited. On 16th November 1999, it was renamed as Export Import Bank of Bangladesh Limited with Mr. Alamgir Kabir as the Founder Advisor and Mr. Mohammad Lakiotullah as the Founder Managing Director respectively. Both of them have long experience in the financial sector of our country.

Vision:
The gist of our vision is Together towards Tomorrow. Export Import Bank of Bangladesh Limited believes in togetherness with its customers, in its march on the road to growth and progress with service. To achieve the desired goal, there will be pursuit of excellence at all stages with climate of continuous improvement, because, in Exim Bank, we believe, the line of excellence is never ending. Banks strategic plans and networking will strengthen is competitive edge over others in rapidly changing competitive environment. Its personalized quality services to the customers with trend of constant improvement will be the cornerstone to achieve our operational success.

Mission:
The Banks mission gives emphasis to: . Maintain corporate & business ethics and transparency at all levels Sound Capital Base Ensure sustainable growth and establish full value to the honorable stakeholders Fulfill its social commitments and Above all, to add positive contribution to the national economy

Industry Analysis:

Overall performance of EXIM Bank Ltd.

SL 1 2 3 4 5 6 7 Particulars Paid up capital Total capital Surplus/ shortage of capital Total assets Total deposit Total investment Total contingent &'commitments 2008 627.78 1592.44 8 24355 19078 19332 liabilities 9000 2009 878.85 2179.8 1 (13) 33716 28319 26046 15941 2010 1713.7 6 3467.3 7 55 41793 35032 32641 18994 2011 2142.2 0 4569.5 6 49 51503 41546 40195 22632 2012 2677.7 5 5763.8 9 68446 57586 53637 26070

8 9 10 11 12 13 14 15 16 17 18

Ratio on investment &. 101.33% 92% Deposit Ratio on classified investment 2.4% 1.89% & total investment Profit after tax & provision 381.8 555 Cost of fund Profit earning asset Non-profit bearing asset 8.40% 19746 4611.7 8.08% 28743 4973 6.63% 1.65% 11 48.61 10.53

93.18% 1.80% 650 9.17% 35161 6632 6.55% 1.73% 12 43.48 7.74

96.75% 1.58% 930.8 9.07% 42357 9145 8.77% 2.00% 20 43.45 11.28

93.14%

1096.6 9.52% 56192 12254

Return on investment (share & 9.87% bonds) Return on assets (after tax) 1.57%

Income on investment (share 15 & bonds) EPS 60.82 P/E ratio 12.80

40.95 7.85

Earnings per Share:

Earnings per share: Earnings per share (EPS) is the amount of earnings per each outstanding share of a company's stock. Earnings per share of Exim bank for previous 9 years are given below: EPS, NAV & Net profit after Tax. Year EPS Net asset value per share 217.61 181.57 213.70 18.63 19.91 Net profit after tax(million) 555.34 650.29 930.84 1096.63 1682.99

2008 2009 2010 2011 2012

63.19 43.48 43.45 2.10 4.99

Calculation of earnings per share: The EPS formula does not include preferred dividends for categories outside of continued operations and net income. Earnings per share for continuing operations and net income are more complicated in that any preferred dividends are removed from net income before calculating EPS. This is because preferred stock rights have precedence over common stock. If preferred dividends total $100,000, then that is money not available to distribute to each share of common stock. The formula to calculate EPS is given below:

Exim bank entered into the stock market of Bangladesh in 2001 by issuing IPO. In 2005, we can see that, net asset value per share was 217.61, net profit was 555.34 million taka and EPS was 63.19.we can understand Exim bank started the journey in stock market with profit. in 2006 net asset value per share 181.57 which was 36.04 lower than previous year. In this case EPS was 43.48 and net profit was 650.29 million taka. So here we can observe that the financial value of Exim bank went up. So the EPS and net profit increased. In 2007 EPS was 43.45 and net asset value per share was 32.13 more than the previous year which is 213.70. In the year 2007 value oh Exim bank increased indicated by increased net asset

value per share and EPS. So, net profit was increased to 930.84 million Tk. Similarly we can see in every year EPS is increasing or decreasing slightly upto year 2007. Upto 2007 net profit also increasing. In 2008 and 2009 EPS decreased a huge amount its because total number of share increased and net asset value per share decreased. As per un-audited financial statement of 2nd quarter (half yearly provision) Exim banks profit after tax stood tk.834.54 million with EPS of 2.47 considering the face value of taka 10.00 per share. The bank charged the denotations of share from 100.00 to 10.00 with effect from June 6, 2010. It may be noted that , at the end of first quarter the banks registered profit after tax 42.24 million either EPS of 1.25 considering the face value of taka 100.00 per share. This remarkable growth in EPS has been achieved due to increase in profit and deduction of provision. As approved in the 11 th annual general meeting of the company held on 12th July, one right share will be issued for every two shares per subject to approval of the securities and exchange commission

Stock Dividend:
A dividend paid as additional shares of stock rather than as cash. If dividends paid are in the form of cash, those dividends are taxable. When a company issues a stock dividend, rather than cash, there usually are not tax consequences until the shares are sold.

Stock Dividend Year 2008 2009 2010 2011 2012 % Stock dividend 30% 25% 25% 26% 35%

Analysis:
1. Risk is the vital issue that the Financial Institutions need to address properly to ensure sustainable growth in the financial market. Addressing of risk and prudent management to optimize the same can ensure sustainable growth in the industry. Now it has become obvious for the Financial Institutions to implement the advices as prescribed in the Basel Accord which will act as a guide to develop a risk adjusted asset and liability portfolio and capital structure. So Bangladesh Bank issued an order regarding Basel II Accord and it would be implemented in the financial institutions from January 2012. For this reason, EXIM Bank of Bangladesh Ltd. offered stock dividends to their investors to meet the capital adequacy. 2. EXIM Bank of Bangladesh Ltd. Invested almost 92%, 93%, 96%, 93% and 90% of total deposit as loan respectively years 2005, 2006, 2007, 2008, & 2009. Since EXIM Bank of Bangladesh is an Islamic bank which refers to a system of banking or banking activity that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics. Sharia prohibits the payment or acceptance of interest fees for loans of money, for specific terms, as well as investing in businesses that provide goods or services considered contrary to its principles. In order to meet the demand of investment the bank needs more funds and so it provides stock dividends to its investors instead of borrowing money and stock dividends reduce the cost of funds.

Cash Dividend:
A cash payment to all qualifying shareholders in proportion to their holdings, usually shown in per share held. Cash dividend is made to shareholders of corporate stock. The dividends are distributed from current earnings or accumulated profits. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. Many corporations retain a portion of their earnings and pay the remainder as a dividend. The last five year data of cash dividend of EXIM bank is presented below

Cash Dividend
Year 2005 2006 2007 2008 2009 % of Cash dividend 30% B, 1R:2 25% B 7.00, 25% B 26% B 35% B

The EXIM bank here believes in best re-invested into the company: research and development, capital investment, expansion, etc. If we look at the trend of the cash dividend of the year 2005 to 2009 that we will see that the only 7% is given in year 2007 as a cash dividend, rest of the year EXIM bank reinvested for the future company expansion. On our analysis, EXIM bank is focusing on company expansion rather focusing on the dividend policy. The number of shares of EXIM bank is increased for stock split and for giving stock dividend, but in our Bangladeshi culture investors like the dividend policy. EXIM bank has played a silent contribution in giving cash dividend. The only reason of not giving cash dividend to the shareholders is to expand the business. The EXIM bank gives more stock dividend for the company expansions.

Conclusion:
Lots of new commercial banks have been established in last few years and these banks have made this banking sector very competitive. So, now banks have to organize their operation and do their operations according to the need of the market The major task for banks, to survive in this competitive environment is by managing its assets and liabilities in an efficient way. As a commercial bank, EXIM Bank provides all traditional banking services including a wide range of savings and investment scheme products, foreign exchange and ancillary, services with the support of modern technology and professional management. But the main stress is, as the name implies, put on export and import trade handling & financing and the bank has become the pioneer in promoting readymade garment industries and one of the largest financiers in this sector.

The EXIM Bank is going to become more popular bank in our country. People feel better about the services of bank, If EXIM Bank can introduce online banking all over the country, the bank will be able to provide effective and very especial service to the clients ultimately it will generate profits.