Submitted by: Submitted by iamANC09
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Words: 894
Pages: 4
Category: Business and Industry
Date Submitted: 02/20/2015 06:38 AM
Consumer Banking | February 10
2015
|
| Final Project |
Submitted by:
Ahmad Nawaz L1F11BBAM2342
Ahmad Sohail
Muhammad Umer
Junaid Iqbal
Mahtab Habib
Submitted to:
Prof. Akhtar Hussain
Consumer Banking
Reasons for the bad performance:
* In advancing new loans, they granted NPLs are more than they estimated for 2011 when we compared with last year 2010. By advancing these types of loans, repayment of these loans is risky because NPLs are not use for productivity. If borrowers declared themselves bankrupt then recovery of the loans will not be confirm.
Period | Target | Achieved | % Achieved |
31-12-2011 | 104.166 Million | 175.015 M | 59.52% |
31-12-2010 | -- | 0.00 | ---- |
Audit Date | 96.300 M | 195.825 M | 49.18% |
* According to the report, there are 12 outstanding entries which have amount of Rs. 219,523 since 27-07-2010. Another outstanding entry of amount Rs. 2,529,415.00.
* They hired more employees than they required staff, i.e. they hired 4 cashiers, 15 officers etc. This is causing in higher costs and in-efficient HR utilization. This ultimately reduces the profit of the company (bank).
* They are holding the money of depositors, and not giving advancing, which causing of opportunity cost (Interest profit). They are ignoring the opportunity cost (Interest earning) by utilizing this money. This ultimately reduces the profit of the bank.
* They are giving more costs on deposits. In other words, they are giving higher interest rate to the depositors
* They reduced the interest rate on advancing loans.
* A decreased in number of accounts opened in 2012 when we compared with last year 2011 and 2010. If the number of deposits reduce then ultimately bank’s revenue will be reduce and at a results bank’s net profits will be go down, which is seriously management must be consider.
Particulars | 2012 | Increase/ decrease | Percentage % | Last years2011 | 2010 |
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