Ratio Analysis of Dutch-Bangla Bank Ltd

Ratio analysis is a tool used by individuals to conduct a quantitative analysis of information in a

company's financial statements. Ratios are calculated from current year numbers and are then
compared to previous years, other companies, the industry, or even the economy to judge the
performance of the company. There are many ratios that can be calculated from the financial
statements pertaining to a company's performance, activity, financing and liquidity.

Since, ratio analysis is predominately used by proponents of fundamental analysis, thats why I
have conducted ratio analysis to judge the performance of Dutch Bangla Bank Limited. Values
used in calculating financial ratios are taken from the balance sheet, income statement, statement
of cash flows or (sometimes called) the statement of retained earnings. These comprise the firm's
"accounting statements" or financial statements. The statements' data is based on the accounting
method and accounting standards used by the organization.

5.1.1 Liquidity Ratio:

The ratio that relates to liquid amount of a company earns from its asset and liabilities is called
liquidity ratio. Liquidity ratio measures the short term ability of the company to pay its maturing
obligation and to meet unexpected needs for cash. Short term creditors such as bankers and
suppliers are particularly interested in assessing liquidity.
Current Ratio:
The current ratio is widely used measure for evaluating a companys liquidity and short term
debt paying ability. The Current ratio can give a sense of the efficiency of a company's operating
cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their
receivables or have long inventory turnover can run into liquidity problems because they are

unable to alleviate their obligations. Because business operations differ in each industry, it is
always more useful to compare companies within the same industry.
Formula:
Current Ratio = Current Asset / Current Liabilities
The ratio is mainly used to give an idea of the company's ability to pay back its short-term
liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher
the current ratio, the more capable the company is of paying its obligations. A ratio under 1
suggests that the company would be unable to pay off its obligations if they came due at that
point. While this shows the company is not in good financial health, it does not necessarily mean
that it will go bankrupt - as there are many ways to access financing - but it is definitely not a
good sign.
Current Ratio of DBBL over the Last 5 years
2009

2010

2011

2012

2013

0.44

0.53

0.58

1.02

1.09

Current Ratio
1.02

0.44

2009

0.53

2010

1.09

0.58

2011

2012

2013

In 2009 and in 2010, the current ratio was 0.44 and 0.53 respectively. From 2009 to 2010, current
ratio increased by 21% and from 2010 to 2011, the ratio increased by 9%. It happened because
current assets increased more than the current liabilities.

Since, last two year DBBL could maintain a current ratio of 1:1, so I can conclude that,
the bank is in a good liquidity position. However, in the last two years the ratio showed an

upward trend, indicating that the bank has reduced the amount of borrowings from Bangladesh
Bank and started paying bills, as much as possible, on time.
Finally, I would like to suggest that, the bank should try to minimize taking loans
from Bangladesh Bank and should invest more in short-term assets, like keeping
balances with other banks and financial institutions, investing more in treasury
securities etc. to hedge itself against liquidity shortage.

Capacity Ratio:
The mirror image to the cash position is captured by the capacity ratio, which should be
understood as a negative liquidity indicator. Its a negative liquidity indicator for the bank
because the loans and leases are often the most illiquid of the assets.
Formula:
Net Loan & Leases/Total Assets
Net loans & leases are defined as total loans & leases minus the accumulated loss allowance for
bad loans. The capacity ratio indicates the extent to which an institution has loaned out its funds.
The higher the capacity ratio, the lower is the institution's liquidity. Even at zero liquidity, the
capacity ratio will be less than 1, because of the necessary investment in fixed assets.
Capacity Ratio of DBBL over the Last 5 years
2009

2010

2011

2012

2013

0.58

0.65

0.63

0.59

0.68

Capacity Ratio
0.56
0.59
0.63
0.65
0.58
1
2009

2
2010

2011

2012

2013

The graph in the above shows that, over the last 5 years DBBL had a fluctuating trend in capacity
ratio. In 2013 the ratio increased to 15% due to 39% increase in net loans & leases as opposed to
only 24% increase in total assets. Net loans & leases increased mainly due to increased loans,
cash credits, overdrafts etc. and lower recovery of lease receivables.

Nevertheless, the optimism is that, in the last year the ratio declined at the rate of 3%, indicating
that the bank has reduced the amount of funds to be loaned out and thereby, trying to improve its
liquidity position. This action has been taken to restrict the private-sector credit flow as a part of
wait-and-see attitude adopted by the bank. Bangladesh Bank has also decided that banks shall
not provide any loan/credit facility for purchasing land in order to channel credit towards
productive areas. Therefore, banks are likely to remain cautious about lending to the private
sector, given the continued heavy demands from government and tightening by the Bangladesh
Bank.

5.1.2 Leverage Ratio:

Leverage ratios show the efficiency of managing debt. In general, the more debt a firm uses in
relation to its total assets, the greater its financial leverage. Financial leverage is the
magnification of risk and return introduced thorough the use of fixed cost financing, such as debt
and preferred stock. The more fixed cost debt a firm uses, the greater will be its expected risk
and return.

Debt Ratio:
Debt ratio is used to measure a company's financial risk by determining how much of the
company's assets have been financed by debt. The debt ratio is an indicator of financial leverage.
It tells the percentage of total assets that were financed by creditors, liabilities, debt.
Formula:
Debt Ratio = Total Debt / Total Assets
This expresses the relationship between the capital contributed by creditors and the total asset of
the company. This provides an indication of the ability of a company to meet creditor
obligations. The lower the ratio, the better financial condition the company is thought to be in. A
high ratio may signal a potential cash shortage and a low ratio company usually has greater
ability to borrow debt in the future.
Debt Ratio of DBBL over the Last 5 years
2009

2010

2011

2012

2013

0.947

0.93

0.93

0.93

0.925

0.95

Debt Ratio of DBBL

0.93

0.93

0.93
0.93

2009

2010

2011

2012

2013

In 2009-2010, the ratio decreased by 2%. This is because in the particular year, total debt
increased by 22%, whereas total asset increased by 24% respectively. However, from 2009-2010,
the ratio was same and thus, the change was 0%.

Overall DBBLs total debt ratios exhibited a downward trend. The main reason behind this
declining trend is that, DBBL issued an industrial bond of Tk.500 million in 2009 only and then,
for the last two years, it had a gradual decrease in its subordinated debt. Moreover, during the
last four years, DBBL reduced the amount of its borrowings from other banks, financial
Institutions and agents.
Since, over the last five years DBBL had a declining trend in total debt ratios, so I would say
that, the bank is in a better financial condition as it can pay creditor obligations from its assets.
However, the flip side of the coin is that, the bank is not properly utilizing its debt capacity and
thus, forgoing the maximum tax benefit of interest payment.
Debt to Equity Ratio:
Debt to equity is a financial ratio indicating the relative proportion of shareholders' equity and
debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as
Risk, Gearing or Leverage. The two components are often taken from the firm's balance sheet or

statement of financial position (so-called book value), but the ratio may also be calculated using
market values for both, if the company's debt and equity are publicly traded, or using a
combination of book value for debt and market value for equity financially.

The ratio measures how the company is leveraging its debt against the capital employed by its
owners. If the liabilities exceed the net worth then in that case the creditors have more stake than
the shareowners.

Formula:
Debt to Equity = Total Debt / Total Equity
This expresses the relationship between the capital contributed by creditors and the capital
contributed to a firm by owners. This provides an indication of the ability of a firm to meet
creditor obligations. The lower the ratio, the better financial condition the firm is thought to be
in. A high ratio may signal a potential cash shortage and a low ratio firm usually has greater
ability to borrow debt in the future.
Debt to Equity Ratio of DBBL over the Last 5 years

2009

2010

2011

2012

2013

34.8

20.2

15.1

11

23.6

Debt to Equity
34.8
23.6

20.2
15.1
11

2009

2010

2011

2012

2013

Over the 4 years (from 2009 to 2012), the company is having a downward trend in debt to equity
ratio. From 2009-2010 the ratio declined the most by 42%. During these four years, DBBL
reduced the amount of its borrowings from other banks, financial Institutions and agents.
Another reason for lower debt to equity ratios is that, the bank has raised capital by issuing
shares through initial public offering (IPO), which in turn resulted in increased amount of equity
capital. But in the current year the debt to equity capital increases significantly that means the
bank is following optimal debt-equity structure and thus, use the maximum tax benefit of interest
payment.

Interest Coverage:
A ratio used to determine how easily a company can pay interest on outstanding debt. For bond
holders, the interest coverage ratio is supposed to act as a safety gauge. It gives one a sense of
how far a companys earnings can fall before it will start defaulting on its bond payments. For
stockholders, the interest coverage ratio is important because it gives a clear picture of the shortterm financial health of a business.
Formula:
Interest Coverage = EBIT/ Interest Charges

The lower the interest coverage ratio, the higher is the company's debt burden and the greater the
possibility of bankruptcy or default. When a company's interest coverage ratio is 1.5 or lower, its
ability to meet interest expenses may be questionable. Therefore, as a general rule of thumb,
investors should not own a stock that has an interest coverage ratio under 1.5.
Interest Coverage of DBBL over the Last 5 years
2009

2010

2011

2012

2013

0.55

1.08

0.91

0.74

0.45

Interest Coverage
0.45
0.74
0.91
1.08
0.55
1
2009

2
2010

2011

2012

2013

The graph in the above shows that, over the last 4 years, DBBL had a downward trend in interest
coverage ratio. This is because during the 4-year period, DBBLs earnings before interest and
expenses (EBIT) decreased, whereas interest charges increased, except for the year 2009.
In all the years, except in 2009, the company had a negative percentage change in interest
coverage ratio; so I can say that, the bank is facing debt and thus, it can meet its obligation to pay
interest on its debts.
Finally I would like to recommend the bank, to monitor and track the trends of its revenues over
time, or else it may face difficulties in generating the cash necessary to satisfy interest expenses.

Loan Deposit Ratio:

The loan to deposit ratio is used to calculate a lending institution's ability to cover withdrawals
made by its customers. A lending institution that accepts deposits must have a certain measure of
liquidity to maintain its normal daily operations. Loans given to its customers are mostly not
considered liquid meaning that they are investments over a longer period of time. Although a
bank will keep a certain level of mandatory reserves, they may also choose to keep a percentage
of their non-lending investing in short term securities to ensure that any monies needed can be
accessed in the short term. If the ratio is too high, it means that banks might not have enough
liquidity to cover any unforeseen fund requirements; if the ratio is too low, banks may not be
earning as much as they could be:
Formula:
Net Loans / Total Deposits
Net loans include: loans to banks or credit institutions; customer net loans; HP, lease or other
loans; mortgages; loans to group companies and associates and trust account lending. Total
deposits cover customer deposits, central bank deposits, banks and other credit institution
deposits and other deposits.
Loan Deposit Ratio of DBBL over the Last 5 years
2009

2010

2011

2012

2013

0.55

1.08

0.91

0.74

0.45

Loan Deposit Ratio

81.3

79.1
73.1

71.4
2009

2010

2011

2012

73.3

2013

Over the years we saw the ups and downs in the ratio. The standard of loan deposit ratio is 85%.
The loan deposit ratio of DBBL in 2009 and 2013 is 71.40% and 73.3%, which indicates that
DBBL is not in progressive but satisfactory.
5.1.3 Profitability Ratios:
Ratios that relate profits to sales and investment are called profitability ratios. Profitability ratios
are of two types-those showing profitability in relation to sales and those showing profitability in
relation to investment. Together, these ratios indicate the firms overall effectiveness of
operation.
Profitability ratios measure the income or operating success of a company for a given period of
time. Income, or the lack of it, affects the companys ability to obtain debt and equity financing.
It also affects the companys liquidity position and the companys ability to grow. As a
consequence, both creditors and investors are interested in evaluating earning powerprofitability. Analysts frequently use profitability as the ultimate test of managements operating
effectiveness.
Operating Profit Margin:
Operating Profit Margin is a ratio used to measure a company's pricing strategy and operating
efficiency. It is expressed as a percentage of sales and shows the efficiency of a company
controlling the costs and expenses associated with business operations. Phrased more simply, it is

a measurement of what proportion of a company's revenue is left over after paying for variable
costs. A healthy operating margin is required for a company to be able to pay for its fixed costs,
such as interest on debt.
Formula:
Operating Profit Margin = Operating Profit / Sales
Operating margin gives analysts an idea of how much a company makes (before interest and
taxes) on each dollar of sales. If a company's margin is increasing, it is earning more per dollar of
sales. The higher the margin, the better is the operating performance of the company. A higher
operating profit margin means that a company has lower fixed cost and a better gross margin or
increasing sales faster than costs, which gives management more flexibility in determining
prices. It also provides useful information for investors to determine the quality of a company
when looking at the trend in operating margin over time and to compare with industry peers.
Operating Profit Margin of DBBL over the Last 5 years
2009

2010

2011

2012

2013

30%

40%

34%

29%

23%

Operating Profit Margin

45%
40%
35%
30%
30%
25%
20%
15%
10%
5%
0%
2009

40%
34%
29%
23%

2010

2011

2012

2013

From 2009-2010, DBBLs operating profit margin increased by 10%. However, from 2010 to
2013, the ratio drastically was decreasing due to the highly increased investment and other
operating income as opposed to net interest income.
On an average, DBBLs operating profit margin showed a declining trend. The reason behind this
declining trend is that, operating profit could not increase as much as sales or net interest income.
Operating profit decreased due to lower investment income, especially caused by reduced gains
from investment securities and foreign currencies. In 2011, gains from investment securities
were severely hampered due to sharp decline in Stock Market, attributed to lack of confidence
and liquidity pressure. At the same time, European debt crises along with slower than expected
economic recovery in USA adversely impacted gains from dealing in foreign currencies.
Similarly, increased variable costs caused by highly increased salary and allowances, rent, taxes,
insurance & electricity expenses, depreciation & repair of bank's assets and other expenses are
also liable for the lower operating profit margin. The increase in variable costs was the ultimate
result of Double Digit Inflation persisted throughout the year 2011 to 2013.
In all the years, except in 2010, DBBL had a negative percentage change in operating profit
margin; so I can say that, the banks operating performance is not satisfactory. This lower margin
indicates that, the bank is not solvent enough to pay for its fixed costs, like interest on debt. This
is because the bank is left with lower proportion of revenue after paying for its variable costs.

Finally, I would like to recommend the bank to make proper investment decisions and avoid
invest in highly volatile Stock Market unless it become stable. I would also suggest the bank to
efficiently handle its Debit and Credit Card expenses, ATM and Tele Banking expenses and other
expenses associated with business operations. If the bank monitors and tracks the trends of its
operating margin over time, it will surely be able to generate sufficient revenues from its
operations to satisfy operating as well as fixed costs.

Return on Average Assets (ROA):

Return on average assets (ROA) is an indicator of how profitable a company is relative to its
total assets. ROA gives an idea as to how efficient management is at using its assets to generate
earnings. The higher the ROA number, the better, because the company is earning more money
on less investment.
Formula:
ROA = Net Profit After Taxes/ Average Total Assets
ROA for public companies can vary substantially and will be highly dependent on the industry.
This is why when using ROA as a comparative measure, it is best to compare it against a
company's previous ROA numbers or the ROA of a similar company.
ROA of DBBL over the Last 5 years
2009

2010

2011

2012

2013

1.6%

2.2%

1.9%

1.7%

1.2%

Return on Average Assets

2.5%

2.2%
1.9%

2.0%
1.6%

1.7%

1.5%

1.2%

1.0%
0.5%
0.0%
2009

2010

2011

2012

2013

The graph shows that, in the year of 2009-10, DBBL had an upward trend in ROA. The reason
behind this positive trend is during the specified time period, net profit after taxes increased more
than the average total assets.

However, over the last 4 years, DBBL had a downward trend in ROA .This is because, in that
particular period average total assets increased more than the net profit after taxes. Average total
assets increased mainly because of increase in current deposit accounts with local banks & fixed
deposit accounts with other financial institutions, money at call and short notice, loans &
advances, fixed and other assets.
In all the years DBBL achieved an ROA greater than or equal to 1.0. Therefore, I can conclude
that the bank is earning more money on less investment. In other words, the management
is efficient at using its invested capital (assets) to generate earnings. So, I would recommend the
bank to keep up the good performance in the coming years. Again, the management should
concentrate on declining ROA and try to increase total assets of the bank.
Return on Average Equity (ROE):
The amount of net income returned as a percentage of shareholders equity is called return on net
worth or return on equity (ROE). The ROE is useful for comparing the profitability of a
company

to

that

of

other

firms

in

the

same

industry.

ROE = Net Profit After Taxes /Average Total Equity

Return on equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested. A high return on equity often reflects the
firms acceptance of strong investment opportunities and effective expense management.
However, if the firm has chosen to employ a level of debt that is high by industry standards, a
high ROE might simply be the result of assuming excessive financial risk.
ROE of DBBL over the Last 5 years

2009

2010

2011

2012

2013

30.%

35.3%

27%

23.4%

17%

Return on Average Equity

40.00%
30.00%
20.00%
10.00%
0.00%

2009 2010
2011 2012
2013

The graph shows that, over the last 4 years, DBBL had a downward trend in ROE. The reason
behind this negative trend is during the specified time period, net profit after taxes increased
more than the average total equity.
Therefore, I can conclude that DBBL is earning less profit with the money shareholders have
invested and thus, the bank is not profitable enough relative to its average total equity. So, I
would recommend the bank to hold back the upward trend of its profitability in the coming
years.
Return on Investment (ROI):
A performance measure used to evaluate the efficiency of an investment or to compare the
efficiency of a number of different investments. A high ROI means the investment gains compare
favorably to investment cost. As a performance measure, ROI is used to evaluate the efficiency
of an investment or to compare the efficiency of a number of different investments. To calculate
ROJ, the benefit (return) of an investment is divided by the cost of the investment; the result is
expressed as a percentage or a ratio.
The return on investment formula:
Gain from investment cost of investment) / cost of investment

ROI of DBBL over the Last 5 years

2009

2010

2011

2012

2013

10.8%

11.6%

10.9%

12.2%

10.8%

Return on Investment (ROI)

14.6

2009

12.2

2010

10.9

2011

11.6

2012

10.8

2013

In ROI of DBBL, it is analyzed that ratio is almost equal in every year that the bank is in
constant level which indicates that DBBL is making progress and arrange their investment
decision in effective way. It earns the highest margin in 2009 which is 14.6% and lowest margin
in 2013 which is 10.8. Although, DBBLs return on investment had a negative growth rate in
2010, 201 1 & 2013 but DBBL recover it in 2012. Return on investment increased mainly due to
higher investments portfolio in 2012.
5.1.4 Capital Ratios:
There are a host of ratios that bank regulators and investors use to assess how risky a bank's
balance sheet is, and the degree to which the bank is vulnerable to an unexpected increase in bad
loans. A bank's Tier 1 capital ratio takes a bank's equity capital and disclosed reserves and
divides it by the bank's risk-weighted assets, (assets whose value is reduced by certain statutory
amounts, based upon its perceived riskiness).

The capital adequacy ratio is the sum of Tier 1 and Tier 2 capital, divided by the sum of riskweighted assets. The tangible equity ratio takes the bank's equity, subtracts intangible assets,
goodwill and preferred stock equity, and then divides it by the bank's tangible assets. Although
not an especially popular ratio prior to the 2007/2008 credit crisis, it does offer a good measure
of the degree of loss a bank can withstand, before wiping out shareholder equity.
Capital ratios can be thought of as proxies for a bank's margin of error. Nowadays, capital ratios
also play a larger role in determining whether regulators will sign off on acquisitions and
dividend payments.
Capital Adequacy Ratio (CAR):
Capital adequacy ratio is a measure of a bank's capital. It is expressed as a percentage of a bank's
risk weighted credit exposures. This ratio is used to protect depositors and promote the stability
and efficiency of financial systems around the world.

In this ratio two types of capital are measured: tier one capital (

above), which can absorb

losses without a bank being required to cease trading, e.g. ordinary share capital and tier two
capital (

above), which can absorb losses in the event of a winding-up and so provides a lesser

degree of protection to depositors, e.g. subordinated debt.

Capital Adequacy Ratio = Capital Base (Tier 1 Capital + Tier 2 Capital / Risk Weighted Assets

The ratio ensures that the banks do not expand their business without having adequate capital.
CAR below the minimum statutory level indicates that the bank is not adequately capitalized to
expand its operations. Hence, banking regulators in most countries define and monitor CAR to
protect depositors, thereby maintaining confidence in the banking system.

Capital Adequacy Ratio of DBBL over the Last 5 years

2009

2010

2011

2012

2013

11.6%

9.6%

11.2%

12.0%

13.7%

Capital Adequacy Ratio

100.00%

200.00%

11.60%

300.00%

11.20%

400.00%

500.00%
13.70%

12.00%

9.60%

2009

2010

2011

2012

2013

The graph in the above shows that, over the last 5 years DBBL had an upward trend in CAR.
From 2009 to 2010, the ratio decreased at the rate of 17%, whereas from 2010 to 2011 the ratio
increased at the rate of 16%. Then in 2010, the ratio increased by 7% and after that, in the
following year it rose by 14%.

In 2010, the ratio declined the most at the rate of 17% because, in that year total risk weighted
assets (RWA) increased more than the total capital. RWA rose especially because of credit risk. In
contrast, total capital decreased mainly due to no change in share premium and no addition in
exchange equalization reserve.

Nevertheless, the optimism is that, in the last year the ratio increased the most at the rate of 14%.
DBBL's Capital Adequacy Ratio (CAR) under Basel II significantly increased to 13.7% from
12% of previous year, against the minimum regulatory requirement of 10.0% for 2013. This has
been possible mainly because of lower exposure to credit and market risk and increase in
DBBLs statutory reserve, dividend equalization account, revaluation reserve of HTM securities,
proposed dividend and retained earnings.
In all the years, the bank has been able to maintain CAR above the minimum capital

requirement by Bangladesh Bank. This signifies that, DBBL is committed to maintain a strong
capital base to support business growth, comply with all regulatory requirements, obtain good
credit rating and CAMELS rating and to have a cushion to absorb any unforeseen shock arising
from credit, operational and market risks.
So, from my analysis I can conclude that, the bank is able to handle losses and fulfill its

obligations to account holders without ceasing operations. In other words, DBBL is adequately
capitalized to protect the greater interest of depositors and shareholders, and expand its
operations.
5.1.5 Efficiency Ratio:
A bank's efficiency ratio is essentially equivalent to a regular company's operating margin, in that
it measures how much the bank pays on operating expenses, like marketing and salaries. By and
large, lower is better.
Cost to Income Ratio (CIR):
Cost to Income ratio is an efficiency measure similar to operating margin. Its a measure of
operating efficiency and expense control. It indicates the percentage of operating revenue after
the operating expense is deducted.
Formula:
Cost to Income Ratio = Operating Expenses / Total Operating Income

The Cost to Income ratio is most commonly used in the financial sector. It is useful to measure
how costs are changing compared to income. A high or rising efficiency ratio means that the
company is losing a larger share of its income to overhead expenses. So, the lower the efficiency
ratio, the better the position of the company.
CIR of DBBL over the Last 5 years

2009

2010

2011

2012

2013

44.1%

41.4%

47.4%

53.9%

63.9%

Cost to Income Ratio (CIR)

80.00%
60.00%
40.00%
20.00%
0.00%

2009

2010

2011

2012

2013

The graph in the above shows that, over the last 4 years DBBL had a upward trend in Cost to
Income Ratio (CIR). The reason behind this upward trend is, in the last 4-year period, total
operating income increased tremendously by 117% compared to 134% increase in operating
expenses. Total operating income rose mainly due to increase in net interest income,
commission, exchange & brokerage and other operating income. On the other hand, operating
expenses rise due to higher legal expenses and directors fees.
Total operating income decreased due to lower investment income, especially caused by reduced
gains from investment securities and foreign currencies. From 2011, gains from investment
securities were severely hampered due to sharp decline in Stock Market, attributed to lack of

confidence and liquidity pressure. At the same time, European debt crises along with slower than
expected economic recovery in USA adversely impacted gains from dealing in foreign
currencies.
Similarly, increased operating expenses caused by highly increased salary and allowances, rent,
taxes, insurance & electricity expenses, depreciation & repair of bank's assets and other expenses
are also liable for the lower CIR.

In all the years, except in 2009, DBBL had a upward trend in CIR; so I can say that, the bank can
not handle its operating expenses efficiently.

Finally, I would like to recommend the bank to make proper investment decisions and avoid
invest in highly volatile Stock Market, so that investment income can be boost up. I would also
suggest the bank to efficiently handle its Debit and Credit Card expenses, ATM and Tele Banking
expenses and other expenses associated with business operations. This will surely help the bank
to increase its operating efficiency to a greater extent.