An Internship Report On “Measuring Performance level of IDLC Finance Limited’’

Abstract

IDLC finance limited company is most trusted and reputed non-banking financial institutions (NBFI) of Bangladesh. IDLC started its journey in 1985 and become the explorer financial institutions in Bangladesh. After the year 2011 this financial company grown so much. In the year 2011 the company has increase its authorized capital from tk.1000 million to tk. 4000 million. It is the sign of expansion of their business. IDLC finance Limited has two wholly own subsidies names IDLC Investment Ltd. And IDLC securities LTD. The analysis and evaluation of performance cover whole IDLC Finance limited. The financial and operation performance of IDLC Finance Ltd. From the year 2015 to 2019 have been shown in the report. The report also covers the IDLC performance in compare with some of its competitor in the Market. It has been identified that the operating and financing expenditure of the company shows a higher growth rate than the operating income over the year 2015 to 2019, which lead impact on its net income. From 2017 to 2019 Net profit growth rate decline by 3.76%. As a result, the profit indicator ratios (ROE, ROA, EPS, dividend payout ratio) are also effected. It is also found out that compare to other non-banking financial institution like with IPDC, union capital Ltd, IDLC price earnings ratio is lower over some years. We know When profitability goes down it also affect the market that means investors and creditors. However, the Solvency ratio shows that IDLC increase its portion of debt compare to its total asset and total equity. The current ratio shows decreasing movement over the period as well as it’s the growth rate is also declined over 5 years of their journey. It has been found out that from 2015 to 2019 about IDLC current asset growth rate decline by 0.67%. This might be the reason for the declining rate of current ratio. Moreover, some activities that makes IDLC Finance ltd. services more special than commercial Bank also shown in this report. Finally, some problems have been identified and base on this suggestion are given to the management so that they can overcome from their basic problems. At the end of the report, a conclusion has been provided on the overall financial performance of IDLC finance Limited.