Investment Banking is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities. In the Bangladesh context, financial institutions that carry out some distinct activities are being addressed as merchant banks. The core functions of merchant banks in Bangladesh include issue management, underwriting and Portfolio management services. Bank Asia has been launched by a group of successful entrepreneurs with recognized standing in the society. The management of the Bank consists of a team led by senior bankers with decades of experience in national and international markets. The senior management team is ably supported by a group of professionals many of whom have exposure in the international market. Bringing high quality service to the customers and to participate in the growth and expansion of our national economy. Place customer interest and satisfaction as first priority and provide customized banking products and services. The investment banking industry is a very cyclical industry. During periods of economic growth, the demands for investment banking services and products increase, causing a tendency for the industry to over expand. Bank Asia limited invested its money in financial market, mostly in secured government fund. In Fiscal Year-2018, the investment of BAL was 35,999,198,344 BDT. In which, 5,566.966 million BDT was T-bills, 27,564.779 million BDT was T-bonds, 575.567 ordinary shares and other investments. Bank Asia limited not only buy, sell and hold upon maturity it also work as a brokers in the security markets. Bank Asia Securities limited is merchant bank, which is also happened to be a subsidiary company of Bank Asia limited. There are some challenges in in investment banking in security market for the Bank Asia limited. If institution work coordinately, effectively and properly through governance of top management and follows institutional code of conducts than this challenges can be overcome. There have lot of possibilities for the Bank Asia limited to involve in full-fledged investment bank who can serve most common investment banking activities throughout the economy in Bangladesh.

1. Assignment
On
The Role of Investment Bank as a key participant in Equity
Market in Bangladesh: A study on Bank Asia Ltd.
Submitted To:
Dr. Md. Monzur Morshed Bhuiya
Professor
Department of Finance
Jagannath University
Submitted By:
Group No: 8
Section: A
Batch: 15th
Department of Finance (EMBA)
Jagannath University
Date of Submission: 30 November, 2019
Place of Submission: Department of Finance, Jagannath University.

2. List of Group Members
SL
.
Name of the
students Id. No.
Work
Contri
bution
Mark (15+5) = 20 Total
(20)On
Report
On
Presentation
1. Apu Gosh M18150203713 18%
2. Emran Hosain M18150203721 28%
3. Md. Monuarul Islam M18150203726 18%
4. Abdul Baki M18150203735 18%
5. Sukanta Roy M18150203738 18%

3. i | P a g e
ACKNOWLEDGEMENT
This report is prepared as part of the requirement of the course “Lease Financing and
Investment Banking”. Preparing a report is always a difficult task to do, but we try our best
to complete this report. First of all, we would like to thank almighty Allah for making us
capable of doing this research work. We are also thankful to our honorable faculty “Dr. Md.
Monzur Morshed Bhuiya” giving us the opportunity to work on this topic “The Role of
Investment Bank as a Key Participant in Equity Market in Bangladesh: A Study on Bank Asia
Limited ” and express gratitude for his specialized comments to improve the quality of the
research paper. We have tried our best to finish this paper with required information and we
apologize for any reluctant mistakes.

4. ii | P a g e
Executive Summary
Investment Banking is a financial institution that assists individuals, corporations and
governments in raising capital by underwriting and/or acting as the client's agent in the
issuance of securities. In the Bangladesh context, financial institutions that carry out some
distinct activities are being addressed as merchant banks. The core functions of merchant
banks in Bangladesh include issue management, underwriting and Portfolio management
services.
Bank Asia has been launched by a group of successful entrepreneurs with recognized
standing in the society. The management of the Bank consists of a team led by senior
bankers with decades of experience in national and international markets. The senior
management team is ably supported by a group of professionals many of whom have
exposure in the international market. Bringing high quality service to the customers and to
participate in the growth and expansion of our national economy. Place customer interest
and satisfaction as first priority and provide customized banking products and services.
The investment banking industry is a very cyclical industry. During periods of economic
growth, the demands for investment banking services and products increase, causing a
tendency for the industry to over expand. Bank Asia limited invested its money in financial
market, mostly in secured government fund. In Fiscal Year-2018, the investment of BAL
was 35,999,198,344 BDT. In which, 5,566.966 million BDT was T-bills, 27,564.779 million
BDT was T-bonds, 575.567 ordinary shares and other investments. Bank Asia limited not
only buy, sell and hold upon maturity it also work as a brokers in the security markets. Bank
Asia Securities limited is merchant bank, which is also happened to be a subsidiary company
of Bank Asia limited.
There are some challenges in in investment banking in security market for the Bank Asia
limited. If institution work coordinately, effectively and properly through governance of top
management and follows institutional code of conducts than this challenges can be
overcome. There have lot of possibilities for the Bank Asia limited to involve in full-fledged
investment bank who can serve most common investment banking activities throughout the
economy in Bangladesh.

5. iii | P a g e
Acronyms
BAL Bank Asia Limited
BB Bangladesh Bank
BASL Bank Asia Securities Limited
BSCE Bangladesh Securities and Exchange Commission
DSE Dhaka Stock Exchange
CSE Chittagong Stock Exchange
FY Fiscal Years
MF Mutual Fund

6. iv | P a g e
TABLE OF CONTENTS
PREFATORY PARTS
ACKNOWLEDGEMENT i
EXECUTIVE SUMMARY ii
ACRONYMS iii
LIST OF TABILES AND CHARTS v
LIST OF FIGURES v
CHAPTER ONE : INTRODUCTION 1-5
1.1 Introduction 2-3
1.2 Objectives of the study 3
1.3 Scope of the study 3
1.4 Methodology of the study 4-5
CHAPTER TWO : ORGANIZATIONAL OVERVIEW OF BANK ASIA
LTD.
6-11
2.1 General Description 7
2.2 Organization Profile 7-8
2.2.1 Vision 7
2.2.2 Mission 8
2.2.3 Values 8
2.4 Subsidiary Company of Bank Asia limited 8-9
2.5 Principal Activities of BASL 9-10
2.6 Services of Bank Asia Securities limited 10-11
2.7 Why Choose Bank Asia Securities limited 11
2.8 Shareholders Capital Structure of BASL 12
CHAPTER THREE : ANALYZING THE ROLE OF BANK ASIA LTD.
IN EQUITY MARKET 13-24
3.1 Total Investment in Financial Market by Bank Asia limited 14-15
3.2 Investment in Treasury Bills 15-16
3.3 Investment in Treasury Bonds 16-17
3.4 Investment in Ordinary Shares 18-19
3.5 Investment in Mutual Funds 19-20
3.6 Investment in Bonds and Debentures 20-22
3.7 Investment Income of Bank Asia limited 22-23
3.8 Brokerage Commission of Bank Asia Limited 23-24
CHAPTER FOUR :MAJOR CHALLENGES, RECOMMENDATIONS &
CONCLUSION 25-28
4.1 Major Challenges of Agricultural Credit 26
4.2 Suggestions and Recommendations 27
4.3 Conclusion 28
REFERENCES & APPENDIX 29-32
A. References 30
B. Appendix 30-32

7. v | P a g e
List of Tables and Charts
Table no. Table Name Page no.
3.1 Investment in Financial Market by BAL and Trend
Percentage
14
3.2 Investment in Treasury Bills by BAL and the Trend
Percentage
15
3.3 Investment in Treasury Bonds by BAL and the Trend
Percentage
17
3.4 Investment in Ordinary Shares and Trend Percentage 18
3.5 Investment in Mutual Funds and Trend Percentage 19
3.6 Investment in Debentures & Bonds by BAL and the Trend
Percentage
21
3.7 Investment in Debentures & Bonds by BAL and the Trend
Percentage
22
3.8 Brokerage Commission earn by BAL and the Trend
Percentage
24
List of Figures
Figure no. Subjects Page no.
3.1 Trend Analysis of Investment in Financial Market of
BAL
14
3.2 Trend Analysis of Investment in Treasury-Bills by Bank
Asia limited
16
3.3 Trend Analysis of Investment in Treasury-Bonds by
Bank Asia limited
17
3.4 Trend Analysis of Investment in Ordinary Shares by
Bank Asia limited
18
3.5 Trend Analysis of Investment in Mutual Funds by Bank
Asia limited
20
3.6 Trend Analysis of Investment in Mutual Funds by Bank
Asia limited
21
3.7 Trend Analysis of Investment in Mutual Funds by Bank
Asia limited
22
3.8 Trend Analysis of Investment Income of Bank Asia
limited
23
3.9 Trend Analysis of Brokerage Commission Earning by
Bank Asia limited
24

8. 1 | P a g e
Chapter 1:
Introduction

9. 2 | P a g e
1.1 Introduction
An Investment Bank is a financial intermediary that executes a variety of services.
Investment banks focus in large and complex financial transactions such as underwriting,
acting as an arbitrator between a securities issuer and the investing public, assisting
mergers and other corporate reforms, and acting as a broker and/or financial adviser for
institutional clients.
Investment Banking is a financial institution that assists individuals, corporations and
governments in raising capital by underwriting and/or acting as the client's agent in the
issuance of securities. An investment bank may also assist companies involved in mergers
and acquisitions, and provide supplementary services such as market making, trading of
derivatives, fixed income instruments, foreign exchange, commodities, and securities. It
also provides advisory services on corporate matters to the firms they lend to.
In the Bangladesh context, financial institutions that carry out some distinct activities are
being addressed as merchant banks. The core functions of merchant banks in Bangladesh
include issue management, underwriting and Portfolio management services.
The Securities and Exchange Commission, based on SRO No 59 of 24 April 1996, and a
decision taken by it on 17 August 1997, invited letters of intent from 14 institutions for
registration of merchant banks. Prior to this decision, 7 institutions submitted such letters
of intent and SEC gave registration to a total of 19. Merchant banks in Bangladesh are
actively governed by the Securities and Exchange Commission (SEC) and submissively
by the Bangladesh Bank.
Investment banks act as intermediaries between issuers and investors. The issuer sells
securities to investment bankers who in turn sell the securities to investors. The investment
banks own the securities until they are resold. For firms seeking to raise long-term funds,
investment banks in Bangladesh provide assistance through a number of functions that
involves.
In this report our main aim is to find the key role of “Bank Asia Ltd.” in equity market of
Bangladesh. We will display you all the investment banking activities performed by the
Bank Asia Ltd. which are related to the economic development in Bangladesh. The role of
any investment bank need to play to enhance and support economic development are
described by the performance of Bank Asia limited.

10. 3 | P a g e
To illustrate this firstly we determine Investment Banking activities in capital market
development, national growth, employment generation and other key activities. Secondly
we evaluate all the element that provide assistance in Bangladesh economic growth. All
this evidence are illustrated through empirical evidence as per requirement and
information available in different sources.
1.2 Objective of the study
Every task has a particular aim. The main objective of this assignment is to learn the
prospects of Investment Banking in Bangladesh and mainly the role of Bank Asia Limited
in equity market in Bangladesh. The following specific objectives have been highlighted
to attain the main objective:
1. To find out the role of Bank Asia Limited on equity market in Bangladesh.
2. To explore the equity market in Bangladesh.
3. To learn about the Investment Banks & Merchant Banking.
4. To identify problems and challenges regarding Bank Asia limited in equity market.
5. To recommend some suggestions about problems and challenges faced by Bank
Asia Limited in equity market.
1.3 Scope of the Study
This study focuses on investment banking, equity market and role of investment banking
in equity market in Bangladesh. Mostly we discuss about the contribution of Bank Asia
Ltd. in equity market. In Bangladesh, the role of Bank Asia Ltd. in equity market also be
explained under the statistical analysis.
Though a study of equity market and investment banking sector encompasses several
aspects from capital market in Bangladesh. To measure technical change, we used the
trend analysis. The study is based mainly on time series data relating to investments in
different types of securities and portfolios. Though there are several economic factors that
influence the equity market, but we only arranged the investment in securities and
merchant banking done by the Bank Asia limited in our report.

11. 4 | P a g e
1.4 Methodology of the Study
Research methodology is a crucial part of a report or term paper. This is the part where
people can determine how report prepared and what type of research method had been
used to prepare the report. As we working a report related to investment bank as well as its
role in the economic development of Bangladesh we need to exercise different economic
data as well as deals with statistical data to justify our report and present it more relevant
toward our research topic. This report is mostly prepared by the secondary sources of
evidence and some rare primary sources of information. The research was an empirical
approach and data gathering and study are qualitative in nature. Internet has been widely
used since we are living an age of technology and internet is a full of information which
help us in an effective manner to prepare our report efficiently.
We collect information and necessary data from two source.
1. Primary sources
2. Secondary Sources
Primary Sources:
We collect our primary data from the employees of Bank Asia limited and Bank Asia
Securities limited through personal interview. We also used personal observation data,
what we gather from the speech of different recognize economist.
Secondary sources:
Our report mainly based on secondary information and data available from different
sources. We took help from different academic book, websites, journals, online
newspaper, and conference report, some national and economic report and so on. We used
only those information which was related to the report topics.
Some of the source are provided below:
 Different economic related websites where provide information about Bangladesh
economic growth.
 Economic article associates with Bangladesh economy and investment bank.

12. 5 | P a g e
 Economist speech on emerging Bangladesh and investments.
 Government report on Bangladesh economic perspective.
 Financial reports of Bank Asia limited
 Financial journal on investment and Bangladesh.
 Online news related to Bangladesh economy.
 We also collect adequate knowledge from our text book and other investment
banking books to know about more on investment banking and its activities.
From all the above source we generate enough information to prepare our report on the
Influence of investment banking in the economic development of Bangladesh economy.
The collected time series data analyzed on the basis of performance of Bank Asia
Securities limited in equity market of Bangladesh. MS Excel software was applied for
analyzing and presenting data in a meaningful way.

13. 6 | P a g e
Chapter 2:
Organizational Overview of Bank Asia
Ltd.

14. 7 | P a g e
2.1 General Description
Bank Asia has been launched by a group of successful entrepreneurs with recognized
standing in the society. The management of the Bank consists of a team led by senior
bankers with decades of experience in national and international markets. The senior
management team is ably supported by a group of professionals many of whom have
exposure in the international market.
It set milestone by acquiring the business operations of the Bank of Nova Scotia in Dhaka,
first in the banking history of Bangladesh. It again repeated the performance by acquiring
the Bangladesh operations of Muslim Commercial Bank Ltd. (MCB), a Pakistani bank.
In the year 2003 the Bank again came to the limelight with oversubscription of the Initial
Public Offering of the shares of the Bank, which was a record (55 times) in our capital
market's history and its shares commands respectable premium.
The asset and liability growth has been remarkable. Bank Asia has been actively
participating in the local money market as well as foreign currency market without
exposing the Bank to vulnerable positions. The Bank's investment in Treasury Bills and
other securities went up noticeably opening up opportunities for enhancing income in the
context of a regime of gradual interest rate decline.
Bank Asia Limited started its service with a vision to serve people with modern and
innovative banking products and services at affordable charge. Being parallel to the
cutting edge technology the Bank is offering online banking with added delivery channels
like ATM, Tele-banking, SMS and Net Banking. And as part of the bank's commitment to
provide all modern and value added banking service in keeping with the very best standard
in a globalize world.
2.2 Organization Profile
2.2.1 Vision
Bank Asia's vision is to have a poverty free Bangladesh in course of a generation in the
new millennium, reflecting the national dream. Our vision is to build a society where
human dignity and human rights receive the highest consideration along with reduction of
poverty.

15. 8 | P a g e
2.2.2 Mission
 To assist in bringing high quality service to our customers and to participate in the
growth and expansion of our national economy.
 To set high standards of integrity and bring total satisfaction to our clients,
shareholders and employees.
 To become the most sought after bank in the country, rendering technology driven
innovative services by our dedicated team of professionals.
2.2.3 Values
1. Place customer interest and satisfaction as first priority and provide customized
banking products and services.
2. Value addition to the stakeholders through attaining excellence in banking
operations.
3. Maintain high ethical standard and transparency in dealings.
4. Be a compliant institution through adhering to all regulatory requirements.
5. Contribute significantly for the betterment of the society.
6. Ensure higher degree of motivation and dignified working environment for our
human capital and respect optimal work-life balance.
7. Committed to protect the environment and go green.
2.3 Subsidiary Company of Bank Asia Limited
Bank Asia Securities Limited (BASL) is one of the leading full-service brokerage
companies in Bangladesh. The company was formed in 2009 and operating as a majority
owned subsidiary of Bank Asia Limited, one of the leading Banks in Bangladesh. BASL
offers full-fledged standard brokerage services for retail, institutional and foreign clients
with a dedicated team of skilled professionals. The company is currently providing the
brokerage services under the membership of Dhaka Stock Exchange Limited (DSE).

16. 9 | P a g e
Bank Asia Securities Limited (BASL) is fully dedicated to provide quality and disciplined
services to its local and foreign clients. BASL offers stock broking, depository services,
online trading facilities, margin loan facilities, panel brokerage services, trading through
NITA for foreign investors & Non-Resident Bangladeshi Citizens (NRB) along with
specialized value-added services to meet the requirements of retail and institutional
investors both local and foreign clients.
The main objective of this company is to act as a full-fledged stock broker and stock
dealer to execute buy and sale order and to maintain own portfolio as well as customers’
portfolio under the discretion of customers. It also performs the other activities relating to
capital market as and when regulators permit.
2.4 Principal Activities of BASL
 Stock Broker
A stockbroker is a professional who executes buy and sell orders for stocks and other
securities on behalf of clients. A stockbroker may also be known as a registered
representative, investment adviser or simply, broker. Stockbrokers are usually associated
with a brokerage firm and handle transactions for retail and institutional customers alike.
Stockbrokers often receive commissions for their services, but individual compensation
can vary greatly depending on where they are employed. Brokerage firms and broker-
dealers are also sometimes referred to as stockbrokers themselves. The most commonly
referenced stockbroker firms are discount brokers.
 Stock Dealer
Dealers are people or firms who buy and sell securities for their own account, whether
through a broker or otherwise. A dealer acts as a principal in trading for its own account,
as opposed to a broker who acts as an agent who executes orders on behalf of its clients.
Dealers are important figures in the market. They make markets in securities, underwrite
securities, and provide investment services to investors. That means dealers are the market
makers who provide the bid and ask quotes you see when you look up the price of a
security in the over-the-counter market. They also help create liquidity in the markets and
boost long-term growth.

17. 10 | P a g e
 Depository Participant Activities
A Depository Participant (DP) is described as an Agent of the depository. They are the
intermediaries between the depository and the investors. The relationship between the DPs
and the depository is governed by an agreement made between the two under the
Depositories Act.
2.5 Services of Bank Asia Securities limited
Panel Broking
BASL offers exclusive panel broking services through renowned Merchant Banks.
 Jamuna Bank Capital Management Ltd
 IDLC Investment Ltd
 IL Capital Limited
Margin Loan
BASL providing margin loan facility to the prospective investor under the Margin Rules
1999. A margin loan is a type of investment loan that lets you borrow money to invest in
shares, managed funds and other approved financial products.
Using a margin loan to amplify the investing power can be an effective way to build
wealth, diversify the portfolio and could offer tax benefits as well. However, just as it has
the potential to grow wealth, if stocks go down in value that means losses will be
amplified as well. It’s important to weigh up both the benefits and the risks when thinking
about investing with a margin loan.
Depository Services
A depository is refer to an organization, bank, or institution that holds securities and
assists in the trading of securities. Depositories are needed for several reasons. First, they
provide security (by cutting back the risks of the bearer holding the physical security) and
liquidity in the market, they use money deposited for safekeeping to lend to others, invest

18. 11 | P a g e
in other securities, and offer a funds transfer system. A depository must also return the
deposit in the same condition upon request.
 BO Account Opening
 Dematerialization of Securities
 Re-materialization of Securities
 Transfer and transmission of Securities
 Pledge, un-pledge through CDS and other related operation.
Brokerage Services
BASL is committed to deliver best brokerage services experiences to its clients through its
state - of- the arts services. It ensures best price for clients through finest execution of
trading in secondary market trading, initial public offering, or block trading.
Brokerage service for institution for clients:
 Foreign Investment Management Companies
 Merchant Banks
 Asset Management Companies
 Bank, Financial Institutions and Insurance Companies.
 Local Companies
 Pension Funds
 Trust Funds
Brokerage service for retails (Individual) clients:
 Local Individual Clients
 Foreign Individual Clients
 NRB (Non Resident Bangladeshi) Clients
2.7 Why Choose Bank Asia Securities Limited?
 Full-fledged international standard RM based brokerage services.
 Best trade execution through professional authorized representative.
 Advanced research service dedicated to the valued clients.
 State of Arts Stock Trading facilities at attractive commission.

19. 12 | P a g e
2.8 Shareholders Capital Structure of BASF
Bank Asia Securities limited (BASL), a majority owned subsidiary company of Bank Asia
limited has been operating as stock broker and stock dealer activities. The equity position
between shareholders is given below:
Table 2.1: Equity structure of Bank Asia Securities limited
SL No. Name of Sponsor No. of Shares % of Paid-up Capital
1. Bank Asia Limited 19,999,900 99.9995%
2. Mr. Anisur Rahman Sinha 100 0.0005%
Total 20,000,000 100%

20. 13 | P a g e
Chapter 3:
Analyzing the Role of Bank Asia Ltd. in
Equity Market

21. 14 | P a g e
3.1 Total Investment in Financial Market by Bank Asia Ltd.
The investment banking industry is a very cyclical industry. During periods of economic
growth, the demands for investment banking services and products increase, causing a
tendency for the industry to over expand. Even though Bank Asia limited is mainly a
commercial bank they also invest in financial market. This investment help other
governmental and non-governmental organization to collect their required capital. Beside
that government can ensure the stable economy by collecting access money into the
market.
Bank Asia limited invested its money in financial market, mostly in secured government
fund. In Fiscal Year-2018, the investment of BAL was 35,999,198,344 BDT. In our Trend
analysis our base fiscal year is 2010 where the investment is 12,075,700,932 BDT.
In bellow, we are presenting the investment in treasury bonds by Bank Asia limited for
last five years in table-3.1
Table 3.1: Investment in Financial Market by BAL and Trend Percentage
Base Fiscal Year- 2010 (In Million BDT.)
Particulars/Years 2018 2017 2016 2015 2014
Investment 35,999.198 27,545.818 39,365.212 46,942.774 38,683.407
Amount Changes 23,923.497 15,470.117 27,289.511 34,867.073 26,607.706
Trend Percentage 298% 228% 326% 389% 320%
Source: Annual Report of Bank Asia Ltd. (2010 – 2018)
Figure 3.1: Trend Analysis of Investment in Financial Market of BAL
2018 2017 2016 2015 2014
Investment 35,999,19 27,545,81 39,365,21 46,942,77 38,683,40
Trend Percentage 298% 228% 326% 389% 320%
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
0
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
30,000,000,000
35,000,000,000
40,000,000,000
45,000,000,000
50,000,000,000
INBDT.

22. 15 | P a g e
Trend Analysis: We can see that the trend of investment in financial market by Bank Asia
limited is fluctuate every year. In year 2015 it reached the highest point of investment, but
in next consecutive two years the investment fall down continuously. The amount of
investment in financial market was raised again in 2018.
3.2 Investment in Treasury Bills
Treasury Bills issued by the government as an important tool of raising public finance.
Bank Asia limited invested large amount of money in this secured market. Treasury bill is
a short term investment which is secured by government. Bank Asia limited invest in 91
days, 181 days and 364 days treasury bills. A market based auction system of treasury
bills was introduced from the FY of 2007-08. Under the system, an auction calendar
mentioning the date and the amount of price is prepared and made public every year.
Bangladesh Bank takes initiative to sell Treasury bill for reducing excessive liquidity
increased due to the growth of export sector and the increase of remittance flow. As a tool
of government loan, Treasury bill was also allowed to accept as a security in the interbank
repo market.
Bank Asia invested in treasury bills nearly every year from the beginning. In fiscal year
2018 the bank invested 1,999,243,099 BDT in 182 days treasury bills and 3,567,723,138
BDT in 364 days treasury bills. In fiscal year 2009 total investment in treasury bills was
297,299,224BDT and in 2010 there was no investment in treasury bills by the Bank Asia
limited.
In bellow, we are presenting the investment in treasury bills by Bank Asia limited for last
five years in Table-3.2
Table 3.2: Investment in Treasury Bills by BAL and the Trend Percentage
Base Fiscal Year- 2009 (In Million BDT.)
Particulars/Years 2018 2017 2016 2015 2014
Treasury Bills 5,566.966 6,200.555 4,020.968 12,398.308 14,847.995
Amount Changes 5,269.667 5,903.256 3,723.668 12,101.009 14,550.696
Trend Percentage 1873% 2086% 1352% 4170% 4994%
Source: Annual Report of Bank Asia Ltd. (2009 – 2018)

23. 16 | P a g e
Figure 3.2: Trend Analysis of Investment in Treasury-Bills by Bank Asia limited
Trend Analysis: In our trend analysis, we can see that the investment in treasury bills are
drastically going down in recent years. In fiscal year-2009 the investment of Bank Asia
limited in treasury bills was 297,299,224 BDT, which get up to 14,847,995,557 BDT in
2014. But after that, the investment in short term government securities goes down to
5,566,966,237 BDT in 2018.
3.3 Investment in Treasury Bonds
Treasury bonds are part of the larger category of government bonds, a type of bond issued
by a national government with a commitment to pay period interest payments known as
coupon payments as well as the principal upon maturity. Bank Asia limited invested large
amount of money in this long term financial market, which is secured by government.
Bank Asia limited invest in 2 years, 5 years, 10 years, 15 years and 20 years treasury
bonds.
Bank Asia invested in more money in treasury bonds than the treasury bills. Because the
coupon rate is higher in treasury bonds. In fiscal year 2018 the bank invested
27,564,779,601 BDT in treasury bonds. In fiscal year 2010 total investment in treasury
bonds was 10,403,689,007 BDT by the Bank Asia limited.
2018 2017 2016 2015 2014
Treasury Bills 5,566,966, 6,200,555, 4,020,968, 12,398,30814,847,995
Trend Percentage 1873% 2086% 1352% 4170% 4994%
0%
1000%
2000%
3000%
4000%
5000%
6000%
0
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
14,000,000,000
16,000,000,000
InBDT.

24. 17 | P a g e
In bellow, we are presenting the investment in treasury bonds by Bank Asia limited for
last five years in the Table- 3.3
Table 3.3: Investment in Treasury Bonds by BAL and the Trend Percentage
Base Fiscal Year- 2010 (In Million BDT.)
Particulars/Years 2018 2017 2016 2015 2014
Treasury Bonds 27,564.779 16,729.386 17,311.406 22,826.335 19,991.007
Amount Changes 17,161.090 6,325.697 6,907.717 12,422.646 9,587.318
Percentage of Changes 165% 61% 66% 119% 92%
Source: Annual Report of Bank Asia Ltd. (2010 – 2018)
Figure 3.3: Trend Analysis of Investment in Treasury-Bonds by Bank Asia limited
Trend Analysis: We can see that the trend of investment in treasury bonds in fiscal year
2018 raise quite excessively from last two fiscal years. In our analysis we understand that
the Bank Asia limited prefer most to invested in long term government security than the
short term government security in current years. Bank Asia limited prefer most the
shorter maturity treasury bonds than longer maturity treasury bonds. Because the
investment is always high in 2 years,3 years and 5 years t-bonds than the 15 years and 20
years t-bonds.
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
0
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
30,000,000,000
2018 2017 2016 2015 2014
Treasury Bonds Amount Changes Percentage of Changes

25. 18 | P a g e
3.4 Investment in Ordinary Shares
Ordinary shares are shares that represent a normal equity ownership in a company. These
shares often allow the investor to vote, to receive dividends, and to receive distributions on
the winding up of a company. This types of investment involves risks, including
illiquidity, lack of dividends, loss of investment and dilution. Bank Asia limited use their
risk management body to minimize that risk by investing in a different portfolios. This
kinds of investment have higher risk with greater profitability rate.
This investment work for private sectors capital collection. So, there are always presence
of higher risk. Bank Asia limited minimize those risks by diversifying the investments.
Investment by Bank Asia limited in ordinary shares during FY-2014 to FY-2018 are
shown in Table 3.4.
Table 3.4: Investment in Ordinary Shares and Trend Percentage
Base Fiscal Year- 2010 (In BDT.)
Particulars/Years 2018 2017 2016 2015 2014
Ordinary Shares 575,567,339 572,493,033 707,631,372 720,662,872 696,742,959
Amount Changes -66,130,331 -69,204,637 65,933,702 78,965,202 55,045,289
Trend Percentage 90% 89% 110% 112% 109%
Source: Annual Report of Bank Asia Ltd. (2010 – 2018)
Figure 3.4: Trend Analysis of Investment in Ordinary Shares by Bank Asia limited
2018 2017 2016 2015 2014
Ordinary Shares 575,567,33 572,493,03 707,631,37 720,662,87 696,742,95
Trend Percentage 90% 89% 110% 112% 109%
0%
20%
40%
60%
80%
100%
120%
0
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
800,000,000

26. 19 | P a g e
Trend Analysis: In our trend analysis, we can see that the investment in ordinary shares
are going downward in last two years. In fiscal year-2010 the investment of Bank Asia
limited in ordinary shares was 641,697,670 BDT, which get up to 720,662,872 BDT in
2015. The risk involve in this investment is much higher in recent years, because of that
the investment in ordinary shares goes down to 575,567,339 BDT in 2018.
3.5 Investment in Mutual Funds
Mutual funds are operated by professional money managers, who allocate the fund's assets
and attempt to produce capital gains or income for the fund's investors. A mutual fund's
portfolio is structured and maintained to match the investment objectives stated in its
prospectus. Bank Asia limited invested their fund in different mutual funds. In fiscal year
2018 they invested in-
 1st Janata Bank Mutual fund
 EBL NRB 1st Mutual Fund
 1st Bangladesh Fixed Income Fund
 MBL 1st Mutual
 EXIM Bank 1st Mutual Fund
A mutual fund is a professionally-managed investment scheme, usually run by an asset
management company that brings together a group of people and invests their money in
stocks, bonds and other securities. As a commercial bank, it is great way to invest in
financial market than the ordinary shares investment. Because the risk management in
financial market must be dealt with cautious.
Investment in Mutual Funds during FY-2014 to FY-2018 are shown in Table-3.4
Table 3.5: Investment in Mutual Funds and Trend Percentage
Base Fiscal Year- 2010 (In BDT.)
Particulars/Years 2018 2017 2016 2015 2014
Mutual Fund 741,900,820 841,900,820 747,370,052 748,405,000 748,405,000
Amount Changes 641,900,820 741,900,820 647,370,052 648,405,000 648,405,000
Trend Percentage 742% 842% 747% 748% 748%
Source: Annual Report of Bank Asia Ltd. (2010 – 2018)

27. 20 | P a g e
Figure 3.5: Trend Analysis of Investment in Mutual Funds by Bank Asia limited
Trend Analysis: In our trend analysis, we can see that the investment in Mutual Funds are
quite stable over the years. In fiscal year 2017 the investment in mutual funds raising to
841,900,820 BDT, but in next year it came down to 741,900,820 BDT. In fiscal year 2010
investment in mutual funds was 100,000,000 BDT, now it is nearly 642% higher.
3.6 Investment in Bonds and Debentures
Most of the organizations will prefer debt since it does not involve personal funds being
utilized and can also be used for leverage. Two of the major sources of funds through debt
route are bonds and debentures. For investors, it is also fruitful to have this debt securities.
Because they provide higher return than equity securities.
Bank Asia limited invested their funds in this debt securities, because the debt security
have higher return rate and also less risk than other conventional investments. It also gave
the bank proper space to facilitate the losses in equity securities.
2018 2017 2016 2015 2014
Mutual Fund 741,900,820 841,900,820 747,370,052 748,405,000 748,405,000
Trend Percentage 742% 842% 747% 748% 748%
680%
700%
720%
740%
760%
780%
800%
820%
840%
860%
680,000,000
700,000,000
720,000,000
740,000,000
760,000,000
780,000,000
800,000,000
820,000,000
840,000,000
860,000,000
InBDT.

28. 21 | P a g e
Investment by Bank Asia limited in bonds and debentures during FY-2014 to FY-2018 are
shown in Table 3.6
Table 3.6: Investment in Debentures & Bonds by BAL and the Trend Percentage
Base Fiscal Year- 2014 (In Million BDT.)
Particulars/Years 2018 2017 2016 2015 2014
Debentures 15.982 15.982 15.982 15.982 15.982
Amount Changes 0 0 0 0 0
Trend Percentage 100% 100% 100% 100% 100%
Bonds 1,532.455 1,784.186 1,781.754 1,440.500 397.891
Amount Changes 1,134.563 1,386.294 1,383.862 1,042.608 0
Trend Percentage 385% 448% 448% 362% 100%
Source: Annual Report of Bank Asia Ltd. (2010 – 2018)
Figure 3.6: Trend Analysis of Investment in Mutual Funds by Bank Asia limited
Trend Analysis: We can see that the investment in debentures are totally stable at a single
point in last 5 years. No increase or decrease in debentures. In fiscal years 2010, the
debentures was 762,548,055 BDT, but in 2014 they cut down their investment fund in
debentures. Now they are only invested in the debentures of Beximco Denims Limited and
Beximco Textiles Limited.
2018 2017 2016 2015 2014
Debentures 15,982,975 15,982,975 15,982,975 15,982,975 15,982,975
Trend Percentage 100% 100% 100% 100% 100%
0%
20%
40%
60%
80%
100%
120%
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
InBDT.

29. 22 | P a g e
Figure 3.7: Trend Analysis of Investment in Mutual Funds by Bank Asia limited
Trend Analysis: In our trend analysis, we can see that the investment in bonds are rising
over the years. In fiscal year 2017, the investment in bond was 1,784,186,591 BDT and
FY- 2018 it going down to 1,532,455,372 BDT. Even though the investment goes down, it
is nearly four time higher than the five years ago.
3.7 Investment Income of Bank Asia Ltd.
Bank Asia limited invested its money in financial market to earn dividend and interest.
Bank Asia limited invested its fund into government’s Treasury bills, Treasury bonds,
Bangladesh Bank bills, Prize bonds and other private bonds, debentures, mutual funds and
ordinary shares etc. From this financial instrument Bank Asia limited earns its income.
Investment Income of Bank Asia limited during FY-2014 to FY-2018 are shown in Table-
3.7
Table 3.7: Investment in Debentures & Bonds by BAL and the Trend Percentage
Base Fiscal Year- 2014 (In Million BDT.)
Particulars/Years 2018 2017 2016 2015 2014
Investment Income 2,311.462 2,535.391 3,548.303 4,827.413 4,029.119
Trend Percentage 57% 63% 88% 120% 100%
Source: Annual Report of Bank Asia Ltd. (2010 – 2018)
2018 2017 2016 2015 2014
Bonds 1,532,455,3 1,784,186,5 1,781,754,4 1,440,500,0397,891,607
Trend Percentage 385% 448% 448% 362% 100%
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
500%
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
1,600,000,000
1,800,000,000
2,000,000,000
AxisTitle

30. 23 | P a g e
Figure 3.8: Trend Analysis of Investment Income of Bank Asia limited
Trend Analysis: From the above trend of investment income of Bank Asia limited, shown
us the income is narrow down continuously in recent three years. In fiscal year 2015 the
investment income of BAL was 4,827,413,103 BDT, next year it goes down to
3,548,303,241 BDT and in year 2018 the income is 2,311,462,131 BDT. The reason
behind the going down investment income is, the Bank Asia limited invest less money in
financial market. Besides that, the financial market have more risk than before.
3.8 Brokerage Commission of Bank Asia Ltd.
A brokerage commission is a fee charged by the Bank Asia limited to execute transactions
or provide specialized services. Bank Asia limited charge brokerage fees for services such
as purchases, sales, consultations, negotiations, and delivery of securities on the behalf of
the customers.
Income from brokerage is recognized on daily basis in the Statement of Comprehensive
Income after receiving the trading note of securities transacted from Dhaka Stock
Exchange Limited, at which point performance is assured to be completed.
2018 2017 2016 2015 2014
Investment Income 2,311,462 2,535,391 3,548,303 4,827,413 4,029,119
Trend Percentage 57% 63% 88% 120% 100%
0
1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
6,000,000,000
0%
20%
40%
60%
80%
100%
120%
140%

31. 24 | P a g e
Brokerage Commission of Bank Asia limited during FY-2014 to FY-2018 are shown in
Table-3.8
Table 3.7: Brokerage Commission earn by BAL and the Trend Percentage
Base Fiscal Year- 2014 (In Million BDT.)
Particulars/Years 2018 2017 2016 2015 2014
Earning Commission 2,990.693 3,119.816 2,474.861 2,156.115 1,877.813
Trend Percentage 159% 166% 132% 115% 100%
Source: Annual Report of Bank Asia Ltd. (2010 – 2018)
Figure 3.9: Trend Analysis of Brokerage Commission Earning by Bank Asia limited
Trend Analysis: Here we can see the up-rising trend of brokerage commission income by
the Bank Asia limited in continuous basis. This happened because of good relation with
investors and the issuer of securities are developed with Bank Asia limited. In year 2018,
the commission from brokerage services is 1.59 times higher than five years ago.
2018 2017 2016 2015 2014
Commission 2,990,693, 3,119,816, 2,474,861, 2,156,115, 1,877,813,
Trend Percentage 159% 166% 132% 115% 100%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
0
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
3,000,000,000
3,500,000,000
InBDT.

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Chapter 4: Major Challenges, Recommendations &
Conclusion

33. 26 | P a g e
4.1 Major Challenges
Through Bank Asia limited is playing their role but sometimes it is thought they can work
more for the security market. Their walk of life in investment banking is not as smooth as
their commercial banking life. The challenges they faces are:
 Lack of efficient manpower in investment banking. In investment decision their
always needs the more experience and speculative employees.
 Bank Asia limited avoid the most important investment banking activities. They
don’t provide any underwriting and mergers & acquisition advices.
 Low investment in the private sector and sluggish employment generation for
millions of unemployed youth.
 Bank Asia limited more focused on their commercial banking activities than the
investment banking activities. Where the goal and objective are set for the
commercial banking performance.
 Lack of collateral by the farmers, formalities & fear regarding collateral
submission most farmers lost their intention to receive the loan as most of them are
illiterate.
 Political interference is acts as a major obstacle for investment banking.
 In Bangladesh investment insurance system yet to develop. Investment banking
performs more if insurance system will spread and function properly.
 Banks Asia limited have short ranges of products and services to attract customer’s
interest in investment banking sectors.
 Bank Asia limited are absent in various marketing activities.

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4.2 Suggestions and Recommendations
It is not unexpected to have problems in any industry, problems may create to operate an
industry. But there must be remedies to follow. Evaluating the performance, trends and
patterns of investment banking of Bank Asia limited over the time the following
suggestions are recommended for further potentiality of investment banking:
 Bank Asia should be perform underwriting and handling mergers & acquisitions as
an investment Bank.
 As an investment Bank, BAL should Increase its manpower level. Efficient
manpower should recruited with having strong academic background of the related
subjects.
 Monthly / quarterly training course / workshops can be arranged for the selected
employee by the authority in order to promote their desired level.
 It was observed that, Bank Asia limited are absent in various marketing activities
like Print Media, Bill Boards, and Sponsorships etc. As investment Bank should
advertise about itself so that it can attract more clients. As a result the business
volume of the bank will increase.
 It is mandatory to create an efficient and justified analysts group for analyzing the
pros and cons of security portfolio.
 They need to effective make portfolio of diversified securities.
 Banks Asia limited should increase the ranges of products and services to attract
customer’s interest in investment banking sectors.

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4.3 Conclusion
The investment banks play a vital role in channelizing the financial societies into
productive investment avenues. Hence before selecting an investment bank, one must
decide the services for which he/she is being have the necessary skills to meet the
requirements of the client.
Bank Asia limited is a commercial bank, but they also involve with the investment
banking in some portion. They have a subsidiary company Bank Asia Securities limited.
The main objective of the Company is to act as a full-fledged stock broker and stock
dealer to execute buy and sell orders and to maintain own portfolio as well as customer’s
portfolio under the discretion of customers. The Company also performs the other
activities relates to capital market as and when regulators permits the company to carry out
activities as per their guidelines.
Bank Asia limited are avoiding the underwriting activities and also the merging &
acquisition activities. Rather BAL conduct the security market as a broker, portfolio
makers and dealers to serve their customers.

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References & Appendix

37. 30 | P a g e
A. References
i. Bank Asia limited, Annual Report (2010-2018), https://www.bankasia-
bd.com/assets/reports/annual/Bank_Asia_Annual_Report_2010_to_2018.pdf
ii. Marshal John F. and Ellis M. E., “Investment Banking The New Rules &
Brokerage of the game”, (2017-2018): pp. 91-140.
iii. Daniel Kurt, (2014). What's the Role of an Investment Bank? Available:
http://www.Invastopedia.com/articles/Investing/111114/whats-role-Inestment-
bank.asp?header_alt=b. Last accessed 3rd
Jan 2018
iv. Dr. Ahsan H, Mansur. (2015), FINANCIAL MARKET DEVELOPMENTS AND
CHALLENGE IN BANGLADESH.
B. Appendix
1.

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2.
3.

39. 32 | P a g e
4.
5.