Muslim Commercial Bank (Internship) 2 Chapter -8

INTERPRETATION:

The loan deposit ratio of the Bank has decreased to 74.96% in 2007 as compared to 76.99% in the 2006. This shows that the Bank has lent less compare to deposits.

8.1. 7 INVESTMENT-DEPOSIT RATIO:

Investment Deposit Ratio       =          Investments x 100

                                                            Deposits

Investment deposit Ratio (2007)= 113089261 x l 00 = 38.72%

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Investment deposit Ratio (2006) = 63486316 x 100 = 24.65%

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INTERPRETATION

The investment deposit ratio of the bank was 38.72% in 2007 and 24.65% in 2006. It shows that the investment of the bank has increased in 2007.

8.1.8 DEBT TO EQUITY RATIO:

Debt-Equity Ratio                  =               Total Debt     .

                                                Stock Holder’s equity

Debt-Equity Ratio (2007) = 355365842 = 7.82

                                                45414156

Debt-Equity Ratio (2006) = 301263929  = 8.44

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