Financial Ratio Analysis: A comparison of five selected Private Banks INTRODUCTION 1.1 Origin of the Report: Bank is a financial institution which has its ultimate objective to make profit .Making satisfactory level of profit depends on the financial strength of the bank and a bank’s financial strength depends on its better financial performance. To achieve better financial performance bank’s have to be identify what is their weaknesses which is possible through details analysis of important financial ratios. For that reason I’m choosing “Financial Ratio Analysis: A comparison of five selected Private Banks” as my internship topics 1.2 Background of the Study: Analyzing financial statement involves evaluating three characteristics of a company: its liquidity, its profitability, and its solvency. Short term creditor, such as a bank, are primarily interested in the ability of the borrower to pay obligations when they come due. The liquidity of the borrower is extremely important in evaluating the safety of a loan. A long term creditor, such as a bondholder, however, looks to profitability and solvency measures that indicate the company’s ability to survive over a long period of time. Long term creditors consider such measures as the amount of debt in the company’s capital structure and its ability to meets interest payments.Similarly; stockholders are interested in the profitability and solvency of the company. They want to asses the likelihood of dividends and the growth potential of stock. All the three characteristics can be evaluated by an in-depth analysis of key financial ratios. Considering the overall scenario, the topic “Financial Ratio Analysis: A comparison of five selected commercial Banks” has been taken to study in depth. 1.3 Objectives of the Study: The objectives of this report are 1. to explore different financial ratios and their nature. 2. analyze the nature of the ratios. 3. compare the ratios of different banks 4. make some important recommendations about the way of improving ratio trend. 1.5 Methodology of the Study: In methodology part, a highlight regarding how the study has been conducted is given. The sequential steps of the methodology are a) Determining the sources of information: Secondary data has been used for the study. Secondary data: The secondary data are those which are already collected by some one else and which have already been passed through the statistical process. b) Collection of Data: Secondary data are collected from the Library of Dhaka Stock exchange and the share department of assigned banks. The study is conducted by extensive review of literature available collections such as various book, publications, periodicals and journals. The help of electronic media like Internet will also be taken as per need of the study c) Analysis of data: