| dc.description.abstract | Non-banking financial institutions (NBFIs) are the fastest growing industries in Bangladesh. There are in total of 36 NBFIs in Bangladesh who play a vital role in the economy of Bangladesh. Financial performance analysis is one of the major concerns of every NBFIs of Bangladesh. They consider various parameters while evaluating the financial performance.
The study uses rigorous quantitative analysis to observe how several variables like liquidity ratios, profitability ratios and others determine how NBFIs like IDLC Finance PLC is performing. The results demonstrate relevant information. As example- Return on Asset of IDLC Finance PLC has significantly decreased in the year 2023 compared to the year 2019 which indicates that they could not generate enough return by utilizing their assets. We also observed that their ROE in the year 2023 has lessened which means that they have failed to generate enough profit relative to its’ shareholders’ equity and it diminishes the confidence and faith of their investors towards IDLC Finance PLC. Compared to the year 2019, their earning per share has lessened in 2023 which indicates that company’s profitability is weakening. We also observed a decrease in dividend payout ratio in 2023 which creates a negative impact among investors who expect immediate returns from the company through dividends. Their debt to total asset ratio increased which indicates that they are at greater insolvency risk, and it raises concerns among investors.
Their debt-to-equity ratio has decreased in 2023 which means that the company is relying less on debt compared to equity. But it also indicates that it puts limit on the potential returns on the equity. The company is also suffering in case of operating profit margin as it has decreased in the year 2023. It indicates that their profitability has reduced and as a result, the company’s ability to reinvest has been hampered. It also raises concern regarding the long-term financial health of IDLC Finance PLC.
SWOT analysis of IDLC reveals key strengths, such as its strong brand reputation, wide range of financial products & services, and extensive branch network across the country, which gives it a competitive edge in the NBFI financial industry. However, some relevant weaknesses are high operating costs and significant dependency on interest-based income, which may affect its profitability in the long run. Furthermore, the analysis identifies profitable opportunities in expanding digital financial services, increasing SME financing, and benefiting from suitable regulatory reforms. On the other hand, the company faces possible threats from the growing number of competitors, new entrance, and economic uncertainties, which could pose challenges to its future growth.
My internship experience at IDLC Finance PLC offered invaluable insights to the company’s day-to-day operational activities and helped to gain practical experience which helped me to gather clear ideas regarding the financial performance trend of IDLC Finance PLC. This experience has prepared me with practical skills that are essential for future opportunities in the Non-Banking Financial Institution (NBFIs) sector and giving me a clearer understanding of how this industry operates in real-world scenarios. | en_US |
